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2016, 11-01 Study SessionAGENDA SPOKANE VALLEY CITY COUNCIL STUDY SESSION FORMAT Tuesday, November 1, 2016 CITY HALL COUNCIL CHAMBERS 11707 East Sprague Avenue, First Floor (Please Silence Your Cell Phones During the Meeting) 6:00 p.m. DISCUSSION LEADER SUBJECT/ACTIVITY GOAL CALL TO ORDER ROLL CALL ACTION ITEMS: 1. Proposed Resolution 16-012 — Amending Governance Manual — Chris Bainbridge [public comment] 2. Motion Consideration: Land Acquisition — Eric Guth [public comment] NON -ACTION ITEMS: 3. Cary Driskell, Kristopher Legal Options for De -annexing from a Discussion/Information Morton Library District 4. Chelsie Taylor, Transportation and Infrastructure Utility Tax Discussion/Information Cary Driskell 5. Eric Guth, Sean Messner Spokane Regional Transportation Management Discussion/Information Center 6. Mark Calhoun City Hall Lease Extension Discussion/Information 7. Steve Worley, Mike Stone, Appleway Trail Update Discussion/Information Eric Guth 8. Eric Guth 9. Mayor Higgins City Hall Update Discussion/Information Advance Agenda Discussion/Information 10. Information Only (will not be reported or discussed): Parks Maintenance Contract 11. Mayor Higgins Council Check in Discussion/Information 12. Mark Calhoun City Manager Comments Discussion/Information ADJOURN Study Session Agenda, November 1, 2016 Page 1 of 1 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 25, 2016 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 Resolution 16-012, Amending City Council Governance Manual PREVIOUS COUNCIL ACTION TAKEN: The Governance Manual Committee consists of Deputy Mayor Arne Woodard, Councilmember Ed Pace, Acting City Manager Mark Calhoun, City Attorney Cary Driskell, and City Clerk Chris Bainbridge. The committee met in July, August and September and discussed and reviewed an added Introduction and Executive Summary, and revised sections dealing with respect and decorum, placing items on an agenda, raising or imposing new taxes, and absences; as well as other minor edits. Council heard an administrative report on the proposed changes during the October 18, 2016 meeting, at which time there was consensus to bring this back for formal adoption consideration. BACKGROUND: As a result of the Committee meetings, the following changes have been incorporated into the final document: 1. Inclusion of an Introduction: in order to give readers a better understanding of the genesis of this document, this brief introduction was drafted. [page 4] 2. Inclusion of an Executive Summary this could be viewed as a quick reference for information contained throughout the manual; it states our City's foundation, purpose, duties, priorities, and basic tenets, and highlights the branches of City government. [page 5] 3. Emergency Council Meetings — new paragraph [page 16] 4. Amended verbiage on • Amending an Agenda [page 16] • Attendance — includes absences for unexcused, excused, and leave of absence (which negated the need for the section on temporarily filling a Council position) [page 17] • Respect and Decorum [page 18] • Placing Items on an Agenda [[page 20] • Recusal [page 23] • Increasing or imposing new taxes [page 25] • Committees — a statement that appointments are generally made at the first or second meeting in January [page 45] OPTIONS Move to approve the Resolution 6-012 amending the Governance Manual, with or without further amendments. RECOMMENDED ACTION OR MOTION: Move to approve Resolution 16-012 amending the Spokane Valley Governance Manual. BUDGET/FINANCIAL IMPACTS: n/a STAFF/COUNCIL CONTACT: Chris Bainbridge, City Clerk ATTACHMENTS: Resolution 16-012 with attached clean, finalized Governance Manual DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 16-012 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, REPEALING AND REPLACING CITY OF SPOKANE VALLEY RESOLUTION 15-007 WITH ATTACHED `GOVERNANCE MANUAL' COMPRISING THE CITY COUNCIL'S COMPREHENSIVE COLLECTION OF MEETING RULES AND PROCEDURES, AND OTHER MATTERS RELATING THERETO. WHEREAS, written rules of procedure regarding how the City Council conducts its policy-making business for the City best assure an atmosphere conducive to efficiency, uniformity and consistency; and WHEREAS, the rules and procedures adopted by the Council by which they conduct the policy- making business of the City need to be amended from time to time to reflect changes in the law and practice of the Council. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: Section 1: On August 11, 2015, Council adopted Resolution 15-007 repealing and replacing the previously adopted City of Spokane Valley Resolution 14-003 with Attached Governance Manual. Section 2. The Council hereby repeals Resolution 15-007 with Attached Governance Manual, and replaces it with "City of Spokane Valley Governance Manual," which contains Appendices to that Manual, including but not limited to, the formerly adopted "General Policy Resolution of Core Beliefs," as well as "Councilmembers' Statement of Ethics," all of which is attached hereto and incorporated herein. Section 3. Effective Date. This Resolution shall be in full force and effective upon adoption. Adopted this 1St day of November, 2016. ATTEST: Christine Bainbridge, City Clerk Approved as to Form: Office of the City Attorney Resolution 16-012 Governance Manual L.R. Higgins, Mayor Spokane jValley Governance Manual Adopted by Resolution 16-012 A Comprehensive Collection of Rules and Procedures Adopted November 1, 2016 Resolution 03-028 adopted 05-13-2003, replaced by Resolution 04-013 adopted 05-25-2004, replaced by Resolution 05-021 adopted 09-13-2005, replaced by Resolution 06-022 adopted 11-14-2006, replaced by Resolution 07-020 adopted 12-11-2007, replaced by Resolution 09-012 adopted 09-08-2009, replaced by Resolution 10-020 adopted 12-28-2010, replaced by Resolution 12-002 adopted 04-10-2012, replaced by Resolution 13-005 adopted 04-23-2013, replaced by Resolution 14-003 adopted 02-25-2014, replaced by Resolution 15-007 adopted 08-11-2015, replaced by Resolution 16-012 adopted 11-01-2016 Page 1 of 63 TABLE OF CONTENTS Introduction 4 Executive Summary 5 CHAPTER 1: Council Meetings 8 A. General 9 1. Time and Location 9 2. Open to the Public 9 3. Presiding Officer 9 B. Meetings 10 1. Regular Meetings 10 a. Formal Format 10 b. Study Session Format 12 c. Executive Sessions 14 2. Special Meeting 15 3. Emergency Meetings 16 4. Pre -Agenda Meeting 16 C. Meeting Rules and Procedures 17 1. Council Rules of Order 17 2. Quorum 17 3. Seating Arrangement 17 4. Attendance 17 5. Respect and Decorum 18 6. Dissents and Protests . 18 7. Councilmember Meeting Participation by Telephone/Video Conference 18 8. Internet Use 18 9. Adjournment Due to Emergency or Disruption 19 10. Permission Required to Address the Council 19 11. Approaching the Dais 19 12. Out of Order (sequence) Requests .. 19 13. Photographs, etc. Requiring Artificial Illumination Prior Permission Required 20 14. Placing Items on an Agenda 20 15. Motions and Discussion 20 Table of Parliamentary Procedure at a Glance 22 16. Voting 23 17. Recusal from Discussion and Consideration 23 18. Ordinances 25 19. Resolutions 25 20. Taxes: Increasing or imposing new taxes 25 21. Hearings 26 22. Reconsideration ... 27 23. Council Materials/packets 28 24. Three Touch Principle 28 CHAPTER 2: Legislative Processes and Procedures 29 A. Election of Council Officers 30 B. Filling Council Vacancies: Permanently Filling a Vacancy 31 C. Legislative Agendas 35 D. Council Travel Provisions 35 E. Ballot Measures 35 Page 2 of 63 CHAPTER 3: Council Contacts 37 A. Citizen Contacts and Interactions 38 1. Mayor/Council Correspondence 38 2. Citizen Concerns, Complaints and Suggestions to Council 38 3 Administrative Complaints to Individual Councilmembers 38 4. Social Media 38 5. Donations 38 B. Staff Contacts and Interactions 39 1. Role of the City Manager 39 2. City staff Attendance at Meetings 39 3. City Clerk — Minutes 39 4 Administrative Interference by Councilmembers 39 5. Informal Communications Encouraged 40 CHAPTER 4: State Statutes 41 A. Open Public Meeting Act 42 B. Public Disclosure: Public Records Act 42 C. Appearance of Fairness Doctrine 42 CHAPTER 5: Committees, Boards, Commissions 44 A. Regional 45 1. Committees 45 2. Council Relations with Boards, Commissions, Advisory Bodies 45 B. In-house 45 1. Standing Committees ....45 a Planning Commission 45 b. Lodging Tax Advisory Committee ... 46 c. Finance Committee 46 C. Private Committees, Boards, Commissions 48 CHAPTER 6: Disclaimer 49 A. Purpose 49 B. Use 49 C. Reliance 49 Appendices: A. Public Hearings, Quasi -Judicial 50 B. Resolution 07-019 Core Beliefs 53 C. Statement of Ethics 55 D. Frequently Used Acronyms 56 E. Definitions 59 Index 60 Endnotes 62 Page 3 of 63 INTRODUCTION In December 2002, prior to our City's official incorporation, then Mayor DeVleming appointed three members of Council to serve on an ad-hoc Governance Coordination Committee for the purpose of drafting Council Rules of Procedure, to serve as an aid to effective legislative and organizational harmony, and to provide procedural rules to conduct meetings efficiently, fairly, and uniformly. The end -product legislation of that Committee's four-month process was approved by Council at the May 13, 2003 Council meeting. That historic first manual also included Resolution 03-027, a General Policy Resolution of Core Beliefs, which was amended by Resolution 07-019, and which can be found in full in Appendix B on page 53. Not unlike other guidance manuals, this Manual too has undergone several changes since its inception. While some sections have remained static over the years, such as Council meeting time and location, other sections have been modified to include Internet use, filling Council vacancies, the use of social media, and the option for Councilmembers to view their packet electronically. The Manual is usually reviewed annually and at times amended to recognize additional topics or for clarification as the need arises. Page 4 of 63 EXECUTIVE SUMMARY FOUNDATION: The City of Spokane Valley incorporated March 31, 2003, and is a non -charter code city operating under a Council -Manager plan of government as outlined in chapter 35A.13 RCW Optional Municipal Code for Council -Manager plan of government. Under this form of government, there are two branches of government: legislative and administrative. PURPOSE OF CITY GOVERNMENT: The general purpose of local government is to promote the social, economic, environmental and cultural well-being of the community, to ensure that resources are used efficiently and effectively, to ensure transparency and accountability in decision-making, and to provide the prudent use and stewardship of local community resources. These statements should be considered the lens through which this Manual is intended and through which the actions of the City Council and staff are viewed. The City recognizes that individual rights are critically important in our society, and the City is committed not to infringe upon those rights whenever possible. Good governance should reflect the will of the citizenry and can only occur as a result of an open public process: "All political power is inherent in the people, and governments derive their just powers from the consent of the governed, and are established to protect and maintain individual rights." (Washington State Constitution Article I, Section 1) OBLIGATIONS: The City acknowledges the importance of complying with the Open Public Meetings Act and the Public Records Act: "The people of this state do not yield their sovereignty to the agencies which serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created." RCW 42.30.010 and 42.56.030. RCW 42.30.010 Open Public Meetings Act: "The legislature fmds and declares that all public commissions, boards, councils, committees, subcommittees, departments, divisions, offices, and all other public agencies of this state and subdivisions thereof exist to aid in the conduct of the people's business. It is the intent of this chapter that their actions be taken openly and that their deliberations be conducted openly." Unless as part of an executive session, Councilmembers shall not meet as a quorum of four or more in a non-public meeting. A quorum of four or more Councilmembers shall also not meet as part of a web conference dealing with City business, nor a conference call, serial communication, social media or even a "straw poll" in executive session. The Open Public Meetings Act does not prohibit a quorum or more of Councilmembers meeting at social gatherings or events provided City issues are not discussed. If Councilmembers are involved in a violation of the Open Public Meetings Act, and are aware that their actions violate the Act, they may be personally liable. If the violation is not intentional, the City may still be liable for attorney's fees. However, elected officials' right to speak freely and gather publicly is protected by the First Amendment of the U.S. Constitution. RCW 42.56.030 Public Records Act: "This chapter shall be liberally construed and its exemptions narrowly construed to promote this public policy and to assure that the public interest will be fully protected. In the event of conflict between the provisions of this chapter and any other act, the provisions of this chapter shall govern." PRIORITIES: Priorities are public safety, pavement preservation, transportation and infrastructure, and economic development. Additional information on priorities and Council goals can be found in each year's budget, as well as the City's Business Plan. BASIC TENETS: Council's core values and basic tenets of governing can be found in Resolution 07-019, which is included in its entirety in Appendix B on page 53 of this Manual. Page 5 of 63 BRANCHES OF CITY GOVERNMENT: The Council is the legislative branch of the City government. Council appoints an officer whose title shall be "city manager" and who shall be the chief executive officer and head of the administrative branch of the City government. "The City Manager shall be responsible to the Council for the proper administration of all affairs of the code city." RCW 35A.13.010. Legislative Branch: City Council. The City Council consists of seven elected officials, each elected to four-year terms. Individual Councilmembers do not have governing power as individuals, but only when meeting as a Council when a quorum (four or more) are present. Council represents the City residents and business owners of the City of Spokane Valley, and is the law -making, policy-making, and budget and spending approval authority of the City government. Council hires, directs, guides and evaluates the performance of the City Manager. The City Manager shall be appointed for an indefinite term and may be removed by a majority vote of the Council (RCW 35A.13.130), or as otherwise agreed to by contract. For functions of the Mayor and Deputy Mayor, see also Chapter 3(B)(1) of this Manual. Some of the duties, responsibilities, and limitations of each Councilmember: • As a representative of City residents, brings the experience, concerns and knowledge of a typical City resident to City government. • As an elected representative, pays attention to the needs, wants and concerns of all City residents and businesses. • Contacts residents and businesses to gather feedback and ideas. The resulting information may be shared with staff or other Councilmembers. • Study information related to the government and administration of the City, including internal and external written information and information received from City employees. • Develop a collegial relationship with City employees, but avoid giving directives or saying anything that could be taken as an attempt to influence the conduct of the employee's job. • Give feedback and ideas regarding City government and administration to the City Manager. • Work with one or two (more than three working together violates the Open Public Meetings Act) other Councilmembers on studying issues and/or sponsoring Resolutions and Ordinances. • Participate in assigned City and regional committees and all Council meetings, special and regular. • Move (or second such motion) to amend an agenda or a motion. • When acting in the capacity of Councilmember outside of Council meetings, communicate that any personal opinion is the opinion of the individual Councilmember and not that of the collective Council, unless pre -authorized to speak, as Council does not want the public to assume that any individual personal opinion represents that of the entire Council. Councilmember's freedom of speech is protected by the U.S. and Washington State Constitutions. Provided there is no quorum, Councilmembers may work together on City Council -related projects and discuss City business in non-public meetings. No permission is needed, nor is notice required to be given for such gathering. • At the appropriate time during a Council meeting, any Councilmember may ask that an item be placed on a future agenda or as a pending item. If during the meeting there is no consensus from the majority of Council, or later if the Agenda Committee deems the item should not be placed on an agenda, during a future Council meeting a consensus of three Councilmembers may move the item forward to a future agenda or as a pending item, consistent with staff workloads. (see also Placing Items on an Agenda, page 20) • Call a Special Meeting of the City Council. Pursuant to RCW 35A.12.110, "Special meetings may be called by the Mayor or any three members of the Council by written notice delivered to each member of the council at least twenty-four hours before the time specified for the Page 6 of 63 proposed meetings." However, if there is no quorum at a meeting, there is no meeting. Notice of Special Meetings should be distributed via the City Clerk. Administrative Branch: The City Manager and City Staff. The City Manager is the City's chief executive officer and head of the administrative branch. The City Manager, an at -will position, reports directly to the Council. All staff work under the direction of the City Manager, who is directed by the City Council. The City Manager is directly accountable to the City Council for the execution of the City Council's policy directives, and for the administration and management of all City departments." (See Ch. 3(B)(1) of this Governance Manual, and page 39 for description of the City Manager Authority.) This summary is not intended as a substitute for the material contained throughout the entire Governance Manual. Although this summary is provided as a quick and concise overview of the Governance Manual, reading of the entire manual is strongly encouraged. The Table of Contents, as well as the Index is intended to be beneficial in locating desired topics of discussion. Page 7 of 63 CHAPTER 1 Council Meetings Page 8 of 63 A. General 1. Council Meetings - Time and Location Regular meetings of the City Council shall be held at Spokane Valley City Hall Council Chambers on Tuesdays beginning at 6:00 p.m. 2. Council Meetings - Open to the Public All meetings of the City Council and of committees thereof shall be open to the public except as provided for in RCW 42.30.110' (Executive Sessions), or RCW 42.30.1402 (Open Public Meetings Act). 3. Presiding Officer The Mayor shall preside at meetings of the Council and be recognized as the head of the City for all ceremonial purposes. The Mayor shall have no regular administrative or executive duties unless specifically set forth herein. In case of the Mayor's absence or temporary disability, the Deputy Mayor shall act as Mayor during the continuance of the absence. In case of the absence or temporary inability of the Mayor and Deputy Mayor, an acting Mayor Pro Tempore selected by majority vote of the remaining members of the Council, shall act as Mayor during the continuance of the absences [RCW 35A.13.0353]. The Mayor, Deputy Mayor (in the Mayor's absence) or Mayor Pro Tem are referred to as "Presiding Officer" from time to time in these Rules of Procedure. Page 9 of 63 B. Meetings 1. Regular Meetings a. Formal Format 1. Normally held 2nd and 4th Tuesdays. The City Clerk, under the direction of the City Manager in consultation with the Mayor, shall arrange a list of proposed matters according to the order of business and prepare an agenda for the Council. On or before close of business on a Friday preceding a Tuesday Council meeting, or at the close of business at least 24 hours preceding a special Council meeting, a copy of the agenda and supporting materials shall be prepared for Councilmembers, the City Manager, appropriate staff, and the media who have filed a notification request. 2. Requests for presentations from outside entities or individuals will only be permitted if they are considered the official business of the City. Such requests should be submitted to the City Clerk at least 10 days prior to the appropriate Council meeting. The City Clerk shall consult with the City Manager and the Mayor for a determination of whether the matter is an administrative issue, and whether it should be placed on an upcoming Council agenda. Playing of videos, DVD's, PowerPoints, or other electronic presentations shall be pre-screened and pre -approved by the City Manager who shall determine the appropriateness of the material. In the event the presenter has no PowerPoint or other material to submit prior to the meeting, the presenter shall be requested to provide a brief written summary of the topic and items to be discussed. All written materials, including the written summary, must be submitted to the City Clerk at least ten days prior to the appropriate Council meeting. 3. Forms of Address. The Mayor shall be addressed as "Mayor (surname)." The Deputy Mayor shall be addressed as "Deputy Mayor (surname)." Members of the Council shall be addressed as "Councilmember (surname)" unless waived by the Presiding Officer. 4. Order of Business. The business of all regular formal meetings of the Council shall be transacted as follows, provided, however, that the Presiding Officer may, during a Council meeting, rearrange items on the agenda to conduct Council business more expeditiously, without the necessity of a formal action or motion. However, adding or removing items from the agenda once a meeting has been called to order requires Council to make a motion and vote on approving the "amended agenda." a. Call to Order by the Presiding Officer b. Invocation c. Pledge of Allegiance d. Roll Call (See Chapter 1, C4 [page 17] for procedure to excuse an absence) e. Approval of Agenda. In case of an emergency or an extremely time -sensitive issue which neither the administration nor the entire Council was aware of prior to the distribution of the agenda and accompanying materials, a new item may be introduced by the Presiding Officer, with concurrence of at least three Councilmembers, or by the City Manager and suggested as an amended agenda item for the present meeting. If a new item(s) is added, Council shall then consider a motion to approve the amended agenda. ("Three -Touch Principle" should be followed whenever possible.) f. Introduction of Special Guests and Presentations. g. Councilmember Reports. Council or government -related activities (e.g. synopsis of committee, commission, task force or other board meetings). These verbal reports are intended to be brief, City work-related reports of significance in keeping the Council informed of pertinent policy issues or events stemming from their representation of the City on a regional board, committee, task force or commission, whether as a formal member or as a liaison. Extended reports shall be placed as future agenda items for presentation or submitted in writing as an informational memo. h. Mayor's Report i. Proclamation. Page 10 of 63 j. Public Comments. 1. An opportunity for public comments on subjects not on the agenda for action. Speakers may sign in to speak, but it is not required. Speakers are limited to three minutes each unless modified by the Presiding Officer. Although the City Council desires to allow the opportunity for public comment, the business of the City must proceed in an orderly, timely manner. At any time the Presiding Officer, in the Presiding Officer's sole discretion, may set such reasonable limits as are necessary to prevent disruption or undue delay of other necessary business. Procedure for all public comments: 1. Verbal: Comments shall only be made from the podium microphone, first giving name, city of residence and subject. No comments shall be made from any other location, and anyone making "out of order" comments shall be subject to removal from the meeting. The public shall be reminded that this is not an opportunity for dialogue or questions and answers, but public comment. When appropriate, staff shall research issues and report back to those making the comment as well as to Council. Verbal public comments are opportunities for speakers to briefly address Council, and those speaking are to address members of Council and not the audience. In order to prevent disruption of the Council meeting, members of the public are asked to refrain from distributing materials to the audience, since Council meetings are not a public forum to address the audience. Since this is an opportunity for verbal public comment, in the interest of time and keeping in mind all documents submitted during Council meetings become the property of the City, graphs, charts, posterboards, PowerPoint presentations, or other display materials are not permitted, although written comments and written materials including photographs and petitions may be submitted to Council via the City Clerk. d. Demonstration, applause or other audience participation before, during or at the conclusion of anyone's public comments is prohibited. Any disruptive behavior, as determined by the Presiding Officer, shall be cause for removal from the meeting room. e. Any ruling by the Presiding Officer relative to these subsections on public comments may be overruled by a vote of a majority of Councilmembers present. f. Council shall not permit public comments if they relate to any matter upon which a quasi-judicial hearing has been required, scheduled, or held. (See Chapter 4 for procedure for taking public comment on legislative matters.) Unless solicited and scheduled, comments shall not be permitted relative to any future or possible/probable future ballot issue. (See Chapter 2, F Ballot Measures.) 2. Written. Citizens have the option of submitting written views, opinions, comments, data and arguments to Council on any topic and at any time, not just prior to or during public Council meetings. Unless the Mayor asks the Clerk to read written comments, or the citizen reads their own prepared written comments, such comments shall not be read aloud during regular or special Council meetings although they shall be included as part of the public record on the topic and if appropriate, may be publicly acknowledged. Any written comments submitted to Council via the City Clerk shall be distributed to Council by placing copies at each Councilmember's workstation or City desk; or in the case of e-mailed or other electronic comments, shall be forwarded to Council via e-mail. If individual Councilmembers receive written (including electronic) public comments or materials for the purpose of reading/sharing those materials during Council meetings, those materials should be submitted to the City Clerk prior to the Council meeting so the Clerk can make copies for later distribution to members of Council. 3. Electronic: Councilmembers shall avoid accessing any electronic message during Council meetings. Accessing such communication could be construed as receiving public comment without the benefit of having the citizen in person to address their concerns. (See also C8 Internet Use) k. Public Hearings (See Chapter 4 for procedural details) Page 11 of 63 1. Consent Agenda 1. Items which may be placed on the Consent Agenda are those which: (1) have been previously discussed by the Council; (2) can be reviewed by a Councilmember without further explanation; (3) are so routine, technical or nonsubstantive in nature that passage without discussion is likely; or (4) otherwise deemed in the best interest of the City. 2. The proper Council motion on the Consent Agenda is: "I move approval of the Consent Agenda." This motion has the effect of moving to approve all items on the Consent Agenda. Prior to the vote on the motion to approve the Consent Agenda, the Presiding Officer shall inquire if any Councilmember wishes an item to be withdrawn from the Consent Agenda. If any matter is withdrawn, the Presiding Officer shall place the item at an appropriate place on the agenda for the current or a future meeting, or the matter may be addressed immediately after passage of the remaining items on the Consent Agenda. m. Unfinished Business [includes matters that were pending when a previous meeting adjourned, or matters specifically postponed to the present meeting] n. New Business [Action items are designated as New Business] Any member of the public who wishes to verbally address the Council on an action item on the current agenda, shall proceed to the podium at the time when comments from the public are invited during the agenda item discussion. The Council may hear such comments before or after initial Council discussion. The Presiding Officer may also invoke a sign -in procedure. If necessary the Presiding Officer in consultation with the City Manager and/or City Attorney shall rule on the appropriateness of verbal public comments as the agenda item is reached. The Presiding Officer may change the order of speakers so that comment is heard in the most logical groupings. o. Public Comments [Same as j above] (Three-minute time limit each) p. Administrative Reports or tracking of an administrative issue or topic. q Information Only Items These items are generally not discussed or reported. r. City Manager Comments s. Executive Session (as required) (See Chapter 1, section Blc below) t. Adjournment. No Council meeting should be permitted to continue beyond approximately 9:00 p.m. without approval of a majority of the Councilmembers present. A new time limit shall be established before taking a Council vote to extend the meeting. When a motion is made to adjourn into Executive Session for a specified period of time, no additional motion is needed to extend the meeting beyond 9:00 p.m. since that is implied as part of the motion to adjourn into Executive Session. In the event that a meeting has not been closed or continued by Council as herein specified, the items not acted on shall be deferred to the next regular formal Council meeting, unless the Council by a majority vote of members present determines otherwise. b. Study Session Format 1. Normally held Pt, 3rd and 5th Tuesdays. The purpose of the study session format is to allow Councilmembers to be made aware of impending business and allow informal discussion of issues that might be acted on at a future meeting. Action items should normally not be included on a study session agenda, although there may be times when due to deadlines or other pertinent issues, action items must be included. Study sessions shall be in a less formal setting than regular formal meetings. Council may be seated other than at the dais, but shall not discourage public observation. Unless there are designated action items which permit public comment, there shall be no public comment at study sessions although the Council may request staff or other participation in the same manner as a regular formal Council meeting. The City Clerk, under the direction of the City Manager, shall arrange a Council study session agenda for the meeting. A copy of the agenda and accompanying background materials shall be prepared for Councilmembers, the City Manager, appropriate staff and the press, on or before 4:30 p.m., one day before Page 12 of 63 the meeting. Councilmembers have the option of accessing their Council packet via the City's website. Unless notified otherwise, the City Clerk shall prepare a hard copy agenda packet for individual Councilmembers. 2. The Presiding Officer may, during a Council meeting, rearrange items on the agenda to conduct Council business more expeditiously, without the necessity of a formal action or motion. However, adding or removing items from the agenda once a meeting has been called to order requires Council to make a motion and vote on approving the "amended agenda." 3. Action Items. Although action items may occasionally be included on a study session agenda, it is the practice of Council to keep those instances to a minimum. Because a study session is a recognized meeting according to the "Open Public Meetings Act," it is permissible for Council to take final action during these meetings. As in the formal format meetings, public comment will be allowed on action items. 4. Unexpected Motions:_ Because study sessions are usually understood by the public and media as referring to meetings at which Council considers and discusses items and does not take final action or vote, it could be misleading to the public as to the purpose of the meeting if a motion is made unexpectedly. As it is Council's practice to invite public comment after most motions, it would be inappropriate to make a "surprise" motion unless there is a rare special circumstance. Voting or making a motion when neither is included on an agenda does not violate state law, but for consistency sake and to avoid any surprises to the public and media, the practice is discouraged. 5. Discussion Leader's Role. During the Council study session, the discussion leader should introduce the subject and give background information, identify the discussion goal, act as facilitator to keep the discussion focused toward the goal, and alert the Presiding Officer when it is appropriate, to schedule the topic for a motion or official direction of the Council. 6. The role of the Presiding Officer is to facilitate Councilmembers engaged in free flowing discussion without the necessity of each Councilmember being recognized by the Presiding Officer. The Presiding Officer retains the option of assuming the function of the discussion leader at any time in order to maintain decorum and ensure all Councilmembers have the opportunity to be heard, and to keep the discussion properly focused. 7. Requests for presentations from outside entities or individuals will only be permitted if they are considered the official business of the City. Such requests should be submitted to the City Clerk at least 10 days prior to the appropriate Council meeting. The City Clerk shall consult with the City Manager and the Mayor for a determination of whether the matter is an administrative issue, and whether it should be placed on an upcoming Council agenda. Playing of videos , DVD's, PowerPoints, or other electronic presentations shall be pre-screened and pre -approved by the City Manager, who shall determine the appropriateness of the material. In the event the presenter has no PowerPoint or other material to submit prior to the meeting, the presenter shall be requested to provide a brief written summary of the topic and items to be discussed. All written materials, including the written summary, shall be submitted to the City Clerk at least 10 days prior to the appropriate Council meeting. 8. Council Comments. The purpose of this agenda item is to allow Councilmembers an opportunity to report on an activity or key issue which either just arose, needs immediate or imminent action, or to simply report on something in connection with their role as a Councilmember that transpired since the last Council meeting. It is also an opportunity for Councilmembers to bring up topics for clarification, or to address other upcoming concerns. Pre -scheduled materials Council wishes to share as part of the Council packet, may also be included on study session agendas under "Council Comments." Page 13 of 63 9. City Manager Comments. The purpose of this agenda item is to allow the City Manager the opportunity to brief Council on an activity or issue which either just arose, needs immediate or imminent action, or to simply inform Council of items that transpired since the last Council meeting. 10. Forms of Address. Councilmembers and staff have the option of addressing each other on a first name basis during the study session format meetings. 11. Roll Call. The City Clerk shall conduct a roll call of Councilmembers. (See Chapter 1, C4 page 17 for procedure to excuse an absence.) c. Executive Sessions 1. If Council holds an executive session, it shall be held pursuant to the Open Public Meetings Act, RCW Chapter 42.30. Council may hold an executive session during a regular or special meeting. Before convening in executive session, the Presiding Officer shall ask for a motion from Council to: publicly announce the purpose for adjourning into executive session; the approximate length of time for the executive session; and the likelihood of Council taking action at the close of the executive session and return to open session. a. At the close of the executive session and upon Council's return to chambers, the Presiding Officer declares Council out of executive session, and asks for the appropriate motion (i.e. an action motion or a motion to adjourn). b. To protect the best interests of the City, Councilmembers shall keep confidential all verbal and written information provided during executive sessions. Confidentiality also includes information provided to Councilmembers outside of executive sessions when the information is considered exempt from disclosure under the Code of Ethics for Municipal Officers (RCW 42.524) and/or the Public Records Act (RCW 42.565). 2. RCW 42.30.110 explains the purpose for holding an executive session, some of which include: a. RCW 42.30.110(1)(b). To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price (pending land acquisition); b. RCW 42.30.110(1)(g). To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW 42.30.140(4) (labor negotiations), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public; [note that stating that an executive session is to discuss a "personnel matter" is not sufficient because only certain types of personnel matters are appropriate for discussion in an executive session.] (review qualifications of a public employee) c. RCW 42.30.110(1)(h). To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public (review qualifications of an elected official) d. RCW 42.30.110(1)(i). To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel_representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public Page 14 of 63 knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. For purposes of this subsection (1)(i), "potential/pending litigation" means matters protected by Rules of Professional Conduct (RPC) 1.6 or RCW 5.60.060(2)(a) concerning: (i) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party; (ii) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or (iii) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency. 3. Council may adjourn into executive session even if it is not listed on the meeting agenda. There is a requirement in RCW 35A.12.1606 that the public be made aware of the preliminary agendas of meetings in advance of the meeting, but that does not mean that an item that arises after the agenda has been posted cannot be discussed at the meeting, even in executive session. Since final action on the matter would not be taken at the executive session, it would not violate any provision in state law to hold an executive session at a regular Council meeting even if the executive session was not listed on the agenda. [per MRSC Index - General Government -Executive sessions.] Although amending the agenda is not required in order to adjourn into executive session, it is a good practice for the Mayor to announce at the beginning of the meeting, that Council will be adjourning into an executive session at the end of the regular meeting. 4. Attendance at Executive Sessions. The City Attorney or Deputy City Attorney shall attend executive sessions which address litigation or potential litigation. The question of who may attend an executive session other than the Council is determined by the City Manager. 2. Special Meetings 1. Meetings set at days, times, and places other than Tuesdays at 6:00 p.m. in the Spokane Valley City Council Chambers shall be deemed "special meetings," such as joint meetings with other jurisdictions or entities (Board of County Commissioners, Planning Commissioners), and Council workshops or retreats. 2. A special meeting may be called by the Mayor or any three members of the Council. (RCW 35A.13.1707, 35A.12.1108). Written notice of the special meeting shall be prepared by the City Clerk. The notice shall contain information about the meeting, including date, time, place, and business to be transacted and shall be posted on the City's website and displayed at the main entrance of the meeting location (RCW 42.30.0809). The notice shall be delivered to each member of Council at least 24 hours before the time specified for the proposed meeting (RCW 35A.12.11010) 3. The notices provided in this section may be dispensed within the circumstances provided by RCW 42.30.080", that is: (a) As to any member who, at or prior to the time the meeting convenes, files with the City Clerk a written waiver of notice, (b) As to any member who was actually present at the meeting at the time it convenes, and (c) In the event a special meeting is called to deal with an emergency involving injury or damage to persons or property or the likelihood of such injury or damage, when time requirements of such notice would make notice impractical and increase the likelihood of such injury or damage; or as otherwise provided by law. 4. Agendas shall be drafted in a form submitted by the City Clerk, approved by the City Manager, and distributed in a manner similar to agendas for formal and study session meetings. The processes and rules for agenda content apply to regular formal, study session format, as well as special meetings. Page 15 of 63 Agenda Items: Special meeting agendas may include action and non -action items. It is the practice of Council to allow time for the public to comment on action items and the "public comment" should be so noted on the agenda. Once the Special Meeting Agenda has been published and distributed, the agenda may be amended provided the amended agenda is distributed to Councilmembers and to the media, and posted on the City's website and at the meeting doorway, at least 24 hours in advance of the special meeting. Final disposition shall not be taken on any other matter at such meeting, which means that the governing body may address other matters not identified in the special meeting notice or agenda, provided `final disposition' regarding such matters is not taken(RCW 42.30.080(3)12) Council may not pass a franchise ordinance at a special meeting [RCW 35A.47.040]. 3. Emergency Meetings: Emergency Council meetings may be called by the Mayor or any two Councilmembers, consistent with the provisions of 42.30 RCW. Meeting time, location and notice requirements do not apply to emergency meetings called for emergency matters as permitted by RCW 42.30.070, 42.30.080, and 42.14.075: "If, by reason of fire, flood, earthquake, or other emergency, there is a need for expedited action by a governing body to meet the emergency, the presiding officer of the governing body may provide for a meeting site other than the regular meeting site and the notice requirement of this chapter shall be suspended during such emergency." [RCW 42.30.070] "The notices provided in this section may be dispensed with in the event a special meeting is called to deal with an emergency involving injury or damage to persons or property or the likelihood of such injury or damage, when time requirements of such notice would make notice impractical and increase the likelihood of such injury or damage." [RCW 42.30.080(4)] "Whenever, due to a natural disaster, an attack or an attack is imminent, it becomes imprudent, inexpedient or impossible to conduct the affairs of a political subdivision at a regular or usual place or places, the governing body of the political subdivision may meet at any place within or without the territorial limits of the political subdivision on the call of the presiding official or any two members of the governing body. After any emergency relocation, the affairs of political subdivisions shall be lawfully conducted at such emergency temporary location or locations for the duration of the emergency." [RCW 42.14.075] 4. Pre -Agenda Meetings: The City Manager, City Clerk, Mayor and Deputy Mayor generally meet at a fixed weekly time to review the Council agenda of the upcoming meeting, which gives all involved an opportunity to ask questions and gather any additional materials or research needed for the impending meeting. This meeting also serves as an opportune time to discuss the Advance Agenda, which is a planning document to aid in scheduling items on future Council agendas. Page 16 of 63 C. Meeting Rules and Procedures 1. Council Rules of Order The City Clerk shall serve as the official parliamentarian for all Council meetings, and shall keep a copy of the most current "Robert's Rules of Order" (RONR) in Council Chambers during Council meetings. 2. Quorum At all regular and special meetings of the Council, a majority of the Councilmembers who hold office shall constitute a quorum for the transaction of business. A lesser number may adjourn from time to time, provided that written notice of said adjournment is posted on the exterior Council Chamber doors pursuant to RCW 42.30.09013. Council meetings adjourned under the previous provision shall be considered regular meetings for all purposes. (RCW 35A.13.17014, 35A.12.120'5) 3. Seating Arrangement Councilmembers shall occupy the respective seats in the Council Chamber assigned to them by the Mayor. 4. Attendance 1. Unexcused Absences: A Councilmember's responsibility to attend Council meetings should not be taken lightly, nor should a decision to remove a Councilmember for missing meetings. Pursuant to RCW 35A.12.06016 "a council position shall become vacant if the councilmember fails to attend three consecutive regular meetings of the council without being excused by the council." As soon as possible after two consecutive unexcused absences, and prior to a third consecutive unexcused absence, the absent Councilmember must request a leave of absence if they desire to remain on the Council. At a third consecutive meeting where a Councilmember is not excused and there has been no request for a leave of absence, the absent Councilmember's office shall be forfeited effective immediately. 2. Excused Absences: Members of Council may be excused from meetings with prior notification to the Mayor, City Clerk, or City Manager prior to the meeting, and by stating the reason for the inability to attend. Acceptable excuses for missing meetings may include death of a family member, family or personal illness, inclement weather, accident, scheduled vacations, family or personal emergency, or unusual or unforeseen circumstances. Following or prior to roll call, the Presiding Officer shall inform the Council of the member's absence, and inquire if there is a motion to excuse the member. The motion shall be nondebatable. Upon passage of such motion by a majority of members present, the absent member shall be considered excused and the City Clerk shall make an appropriate notation in the minutes. 3. Leave of Absence: a. A Councilmember whose serious health or physical condition would prevent them from performing the duties of Councilmember may ask to be placed on a leave of absence under the following conditions: • Such serious health or physical condition must be certified in writing by a medical physician. • The request for a leave of absence shall be in writing, and hand -delivered or mailed to the Mayor, City Clerk, or City Manager at least one week prior to the date when such leave would commence. • The request for a leave of absence must state the anticipated date the Councilmember will resume their duties. • By majority vote of the whole Council, a leave of absence shall be granted as follows: o The absence shall not exceed 90 days from the date the motion is passed by Council o The absent Councilmember shall retain pay and medical benefits during the leave of absence o At the end of the 90 -day leave of absence, the absent Councilmember shall either: Page 17 of 63 • Return to normal Council duties commencing with the first Tuesday following the end of the 90 -day leave; or • be subject to RCW 35A.12.060 concerning three consecutive absences, beginning with the first Tuesday following the end of the 90 -day leave. b. A leave of absence may only be granted twice during a Councilmember's four-year term, with no less than six months between each request. Upon approval of a leave of absence, the absent Councilmember shall not be replaced with a pro -tem Councilmember during the absence. 5. Respect and Decorum It is the duty of the Mayor and each Councilmember to maintain dignity and respect for their offices, City staff and the public. While the Council is in session, Councilmembers shall preserve order and decorum and a Councilmember shall neither by conversation or otherwise, delay or interrupt the proceedings of the Council, nor disrupt or disparage any Councilmember while speaking. Councilmembers and the public shall comply with the directives of the Presiding Officer. Any Councilmember making disruptive, disparaging or impertinent remarks, or unreasonably disturbing the business of the Council shall be asked to cease such disruption. Any other person attending a Council meeting who disrupts the meeting in such a fashion that the Council is impaired in its ability to attend to the business of the City may be asked to leave, or be removed from the meeting. At any time during any Council meeting, any Councilmember may object to personal affront or other inappropriate comments, by calling for a "point of order." After the Councilmember is recognized by the Presiding Officer and the Councilmember explains their point concerning respect and decorum, or lack thereof, the Presiding Officer shall rule on the remark. If the person making the remark is a Councilmember, the Presiding Officer may ask the Councilmember to cease. If the person making the remark is a member of the public, the Presiding Officer shall determine if the remark is actually disruptive, and whether the remark has impaired the ability of the Council to attend to the business of the City. If so, the Presiding Officer shall seek the removal of that person from the meeting. Continued disruptions may result in a recess or adjournment as set forth in #9 below. 6. Dissents and Protests Any Councilmember shall have the right to express dissent from or protest verbally or in writing, against any motion, ordinance or resolution of the Council and have the reason therefore entered or retained in the minutes. 7. Councilmember Meeting Participation by Telephone/Video Conference Telephone/video conference participation by Councilmembers may be allowed provided that a quorum of Councilmembers shall be physically present for the Council meeting in question, and provided technical availability and compatibility of electronic equipment enables the conferencing Councilmember(s) to hear the proceedings, be heard by those present, and participate in Council discussion. More than one Councilmember may request participation via telephone for the same meeting, provided that those Councilmembers would be able to be reached at the same phone number, as the Council Chamber's current system can only accommodate the use of one telephone number per meeting. a. Requests to use telephone/video conference participation shall be approved by the Council by motion. Such participating Councilmember(s) shall be present and counted. So as not to disrupt the Council meeting, adequate notice shall be given to allow appropriate setup in time for the beginning of the meeting. b. Telephone/video conference participation for voting purposes shall be allowed for public hearings or any quasi-judicial proceedings, and the requesting Councilmember(s) shall declare that (s)he has reviewed the associated material (if any) provided for those hearings and/or proceedings prior to the time the vote will be taken by Council. 8. Internet Use Use of the City's network systems implies Council is aware of and understands that the system is provided to assist in the performance of their roles as Councilmembers, and as such, Councilmembers are obligated Page 18 of 63 to use, conserve and protect electronic information and information technology resources and to preserve and enhance the integrity of those resources which belong to the citizens of Spokane Valley. a. As noted on page 8, Councilmembers shall avoid accessing any electronic message during Council meetings. Accessing such communication could be construed as receiving public comment without the benefit of having the citizen in person to address their concerns. Likewise, Councilmembers shall avoid browsing the Internet of non -City business during Council meetings in order that Council's full attention can be given to the topic at hand. b. Information technology resources are provided for the purpose of conducting official City business. The use of any of the City's information technology resources for campaign or political use, unless such use has been determined not a violation of RCW 42.17A.555'7 by the City Attorney, Washington State Attorney General, or Washington Public Disclosure Commission, or as otherwise authorized by law, is absolutely prohibited. c. Confidential material shall not be sent via e-mail. d. All letters, memoranda, and interactive computer communication (e-mail) involving Councilmembers, the subject of which relates to the conduct of government or the performance of any governmental function, with specific exceptions stated in the Public Records Act (RCW 42.56) are public records. Copies of such letters, memoranda and interactive computer communication shall not be provided to the public or news media without filing a public record request with the City Clerk. e. E-mail communications that are intended to be distributed among all Councilmembers, whether concurrently or serially, shall be considered in light of the Open Public Meetings Act. If the intended purpose of an e-mail is to have a discussion that should be held at an open meeting, the electronic discussion should not occur, and Council discussion should wait until everyone has had ample opportunity to view the message before including such topic(s) on an upcoming agenda. 9. Adjournment Due to Emer2ency or Disruption In the event of an emergency such as a fire or other natural or catastrophic disaster, threatened violence, or inability to regain or retain good order, the Presiding Officer shall forthwith declare a recess, adjourn, or continue the meeting, and the City Council as well as everyone in the room shall immediately leave the meeting room. The Presiding Officer may reconvene the meeting when it has been determined by the appropriate safety officials that it is safe to do so. 10. Permission Required to Address the Council Persons other than Councilmembers and staff shall be permitted to address the Council upon recognition and/or introduction by the Presiding Officer or City Manager. 11. Approaching the Dais by Members of the Public Once a Council meeting has been called to order, members of the public are prohibited from stepping between the speaker's podium and the dais , or stepping behind any part of the dais or stepping behind those sections adjacent to the dais which are occupied by staff. Citizens are also prohibited from distributing/placing materials on the dais, including video recording, still photography, tape recording, and other written handouts. If citizens wish Council to receive materials, those materials should be handed to the City Clerk during the public comment section of the agenda; and the Clerk will distribute the materials to members of Council. Council reserves the right to invite anyone forward to the podium to be addressed by Council. 12. Out of Order Requests Occasionally a member of the public may wish to speak on an agenda item but cannot remain until the item is reached on the agenda. During "Open Comments From the Public," such person may request permission to speak by explaining the circumstances. The Presiding Officer in his/her sole discretion shall rule on allowing or disallowing the out of order request. Page 19 of 63 13. Photographs, Motion Pictures or Videos Requiring Artificial Illumination — Prior Permission Required No overhead projection, photographs, motion pictures, or videos that require the use of floodlights, or similar artificial illumination shall be used by the public at City Council meetings without the prior consent of the Presiding Officer or the City Manager. 14. Placing Items on an Agenda: a. Routine Council Business: Through the normal course of business, Council may move items forward to a future agenda by consensus, taking into account staff's work schedules as noted by the City Manager, unless the Council wants to discuss the item prior to staff's involvement. b. New Item Council Business: At the appropriate time during a Council meeting (such as Council Comments, or Advance Agenda), a Councilmember may request to have items placed on a future agenda. Each request shall be treated separately. The City Manager is most familiar with staffs workload and shall determine when the item can be prepared and brought forward to Council, unless the Council wants to discuss the item prior to staff's involvement. The following process shall be used to propose an item for a future Council meeting: • A Councilmember may propose an item and give a brief explanatory background of the issue and its importance to the City. • Councilmembers may ask clarifying questions but should not engage in debate. • The item shall be considered at the next meeting of the Agenda Committee taking into account legal or other appropriate scheduling issues as determined by the City Manager or legal issues as determined by the City Attorney, unless Council wants to discuss the item prior to staff's involvement. o The Committee may place the item on a future agenda or as a pending item; or o The Committee may determine not to place the item on a future agenda or as a pending item and the Mayor or Deputy Mayor shall notify the proposing Councilmember who has the option of bringing the issue up again during the advance agenda portion of a meeting for further discussion. At that time, a consensus of three or more Councilmembers may move the item forward to a future agenda. c. Staff: except for routine items such as those found on most Consent Agendas, requests for items to come before Council shall be routed through the City Manager or come directly from the City Manager as part of the normal course of business. 15. Motions and Discussion a. Order of Procedure: 1. Member of Council makes a motion by stating: "I move .. ." The motion is seconded. Staff makes their presentation. Mayor asks Council if there are any questions for staff. Once all questions have been addressed, the staff member steps away from the podium to allow for the public comment opportunity. 2. The Mayor invites public comments. Public comments should be limited to one comment per person per topic and limited to three minutes. The Mayor reminds the public this is time for comments and not discussion; and if the public has questions, those questions shall be addressed by staff at another time outside the meeting. 3. The Mayor opens the floor to Council for discussion. The maker of the motion normally begins the discussion. Page 20 of 63 The discussion must have bearing on whether the pending motion should be adopted (RONR §43); and can be prefaced by a few words of explanation, but must not become a speech (RONR §4). All Council remarks should be addressed through the Mayor. 4. When discussion has ended, the Mayor re -states the motion or asks the Clerk to re -state the motion. Once the motion is re -stated, the Mayor calls for the vote, which is normally taken by voice. The Mayor or the Clerk then states whether the motion passed or failed. b. In General: 1. Except in rare circumstances, Council motions shall be in the form of an affirmative motion. Affirmative motions are preferred to prevent "approval by default" of a failed negative motion. 2. Agenda items scheduled for Council action shall require a motion by a Councilmember before discussion unless by majority vote the Council suspends the requirement. If a motion fails, the agenda item shall be considered concluded. However, said item could be reconsidered if done during the same meeting, or through Council majority vote could be brought back at a later meeting to "rescind an action," or to "amend something previously adopted." (Mayoral appointments excepted. See Committees for further discussion.) 3. Councilmembers should direct questions to the City Manager or the designated presenter. 4. Main motions are made when no other motion is pending (see chart below). They are debatable and subject to amendment. Since seconding a motion means "let's discuss it," if there is no second but discussion ensues, the matter of having a second to proceed is moot and the motion can proceed. However, if there is no second and no discussion, the motion does not progress. Note that the motion does not "die for a lack of a second" but it merely does not progress. 5. The maker of a motion can withdraw their motion without the consent of the seconder, and if the mover modifies the motion, the seconder may withdraw the second. The person making the motion is entitled to speak first to the motion. A maker of the motion may vote against the motion but cannot speak against their own motion. 6. No one should be permitted to speak twice to the same issue until everyone else wishing to speak has spoken. All remarks shall be directed to the Presiding Officer and shall be courteous in language and deportment (Robert's Rules of Order Newly Revised, Article VII, Section 43, Decorum in Debate), keeping in mind it is not the Councilmember, but the measure that is the subject of debate. 7. When an amended motion is on the floor, the vote is taken on whether to adopt the amendment. If adopted, the next vote is on the fully amended motion. 8. Motions should be reserved for items marked on the agenda for action, so as to avoid any surprises for Council, staff and the public. Page 21 of 63 Parliamentary Procedure at a Glance Roberts Rules of Order § IF YOU WANT TO YOU SAY INTERRUPT NEED 2' Can be Debated Can be Amended VOTE 11 Postpone indefmitely (the purpose is to prevent action or kill an issue.) I move to postpone ... . (an affirmative vote can be reconsidered; a negative vote cannot.) indefmitely No Yes Yes No Majority 12 Modify wording of motion I move to amend the motion by .. . No Yes Yes Yes** Majority 14 Postpone to a certain time Ex: I move to postpone the motion to the next Council meeting. No Yes Yes Yes Majority 16 Close debate I move the previous question, or I call for the question *** No Yes No No Majority* 17 To Table a motion I move to lay on the table, the motion to No Yes No No Majority 19 Complain about noise, room temperatures etc Point of Privilege Yes Yes Yes Yes Chair decision 20 Take break I move to recess for .. No Yes No Yes Majority 21 Adjourn meeting I move to adjourn No Yes No No Majority 23 Object to procedure or personal affront Point of Order Yes No No No Chair decision 25 Suspend rules I move to suspend the rules and .. . No Yes No No Majority* 34 Take matter from table I move to take from the table the motion to No Yes No No Majority 35 Reconsider something already disposed of I move we reconsider action on .. . No Yes Yes Yes Majority It should be noted that the purpose of tabling a motion is not to simply postpone an issue or a vote. If the intended purpose is to postpone, then the motion to postpone should be used. If more information is needed or desired in order to make the most informed vote possible, then an option would be for the maker of the motion to simply withdraw the motion. The consent of the seconder is not needed to withdraw a motion. While a motion is still on the table, no other motion on the same subject is in order. The motion to table enables the assembly to lay the pending question aside temporarily when something else of immediate urgency has arisen. The motion to "Lay on the Table" is out of order if the evident intent is to kill or avoid dealing with a measure. (Robert's Rules of Order Newly Revised, 10 Edition) *(Robert's Rules of Order Newly Revised states 2/3 vote required. Council direction is to base vote on majority except on matters where 2/3 (or majority plus one) is required by state statute. ** If the main motion to amend can be amended. * * *Call for the Question: if it is felt that debate on a motion on the floor has continued longer than warranted, a member of Council may "call the question." The "call for the question" is a motion to end debate and vote immediately. If this "call for the question" motion is passed by a majority vote, then the vote must be taken on the original debated motion on the floor. Page 22 of 63 16. Voting The votes during all meetings of the Council shall be transacted as follows: a. The Presiding Officer shall first call for a vote from those in favor of the motion, followed by a call for those opposed to the motion, and afterwards shall state whether the motion passed or failed. Unless otherwise provided by statute, ordinance, or resolution, all votes shall be taken by voice or a show of hands. At the request of any Councilmember or the City Clerk, a roll call vote shall be taken by the City Clerk. The order of the roll call vote shall be determined by the City Clerk. b. Unless otherwise provided by statute, ordinance, or resolution, in case of a tie vote on a motion, the motion shall be considered lost. c. Every member who was present when the question was called, shall give his/her vote. If any Councilmember refuses to vote "aye" or "nay," their vote shall be counted as a "nay" vote unless the Councilmember has abstained or recused themself due to actual or perceived appearance of a conflict of interest, which shall be so stated prior to the vote at hand. d. The passage of any ordinance, grant or revocation of franchise or license, and any resolution for the payment of money, any approval of warrants, and any resolution for the removal of the City Manager shall require the affirmative vote of at least a majority of the whole membership of the Council (RCW 35A.12.12018). Except as provided in "e" below, all other motions or resolutions shall require an affirmative vote of at least a majority of the quorum present. e. Majority Plus One: The passage of any public emergency ordinance (an ordinance that takes effect immediately), expenditures for any calamity, violence of nature, riot, insurrection, or war; and provisions for a lesser emergency, such as a budget amendment (RCW 35A.33.09019), shall require the affirmative vote of at least a majority plus one of the whole membership of the Council. (RCW 35A.13.19020). 17. Recusal From Discussion and Consideration. Situations may arise when a Councilmember should consider whether to recuse themselves from the consideration and decision-making on a particular item. These situations can arise in various ways, including having an interest in a contract being considered by the City, or when a Councilmember has a bias in some fashion regarding an issue before the Council. For additional discussion and explanation, please see Appendix C — Spokane Valley Councilmembers' Statement of Ethics. The overarching goal of the conflict of interest laws is to prevent municipal officers from engaging in self-dealing. Seattle v. State, 100 Wn.2d 232, 246 (1983). [Self-dealing is defined as a situation in which a fiduciary acts in his own best interest in a transaction rather than in the best interest of his clients. A fiduciary is legally obligated to act in the best interest of his clients.] [A fiduciary is a person to whom property or power is entrusted for the benefit of another.] Prohibited acts. There are some conflicts which cannot be waived, and some actions in which Councilmembers shall not engage. RCW 42.23.070 prohibits municipal officers from: (1) Using "his or her position to secure special privileges or exemptions for himself, herself, or others." (2) Directly or indirectly giving or receiving or agreeing to receive "any compensation, gift, reward, or gratuity from a source except the employing municipality, for a matter connected with or related to the officer's services as such an officer unless otherwise provided for by law." (3) Accepting employment or engaging in business or professional activity that "the officer might reasonably expect would require or induce him or her by reason of his or her official position to disclose confidential information acquired by reason of his or her official position." (4) Disclosing confidential information "gained by reason of the officer's position, nor may the officer otherwise use such information for his or her personal gain or benefit." Conflict of interest contracts. In contractual matters, Councilmembers are required to avoid directly benefitting from contracts entered into by the City. When a Councilmember is aware that they may benefit from such a contractual relationship, they are required to recuse themselves. Other situations may arise Page 23 of 63 where a Councilmember may indirectly benefit. In these circumstances, the determination of whether a conflict of interest exists such that they should recuse themselves will have to be made by that Councilmember based on facts and circumstances known at the time. Bias for or against a proposed action. There will be situations for each Councilmember where, based upon their prior work or personal relationships, that Councilmember may not be able to participate in a discussion and decision on a given issue because they likely can't be objective. In such an event, the Councilmember must give due consideration to their potential to be predisposed, and whether they believe they can objectively consider and decide on the issue. If the answer is yes, then the Councilmember may proceed. If this self-analysis is difficult as to whether the Councilmember can be objective, but the determination is that they can, the Councilmember should strongly consider disclosing the nature of the potential bias to the Council, and then announce whether they believe they can or cannot proceed. If the Councilmember does not believe they can be reasonably objective, they should recuse themselves from the discussion and consideration. The purpose for recusal under such circumstances is that the Council wants the public to have the utmost confidence that decisions are made objectively, and that all citizens and businesses will be treated equally and fairly. Process and Disclosure: When a Councilmember determines recusal is appropriate, or when it is required by law, the Councilmember shall announce that they need to recuse themselves, explain the factual circumstances, then step off the dais and out of the Council chambers. A staff member will retrieve the Councilmember once that issue is finished being discussed. The determination of whether to recuse oneself from an issue, and then formally recusing, shall occur before any discussion has taken place on that issue to ensure that Councilmember does not participate in the matter in any fashion. The following is an example of appropriate language where recusal is warranted: Following careful analysis and consideration, I think it is appropriate for me to recuse myself from any discussion and decision on this matter. I have known the owners of * business for * years, am friends with them, and believe it would be most appropriate for me not to participate in this matter. As such, I will recuse myself and step out of the room. OR Following careful analysis and consideration, I think it is appropriate for me to recuse myself from any discussion and decision on this matter. I own a business that competes directly with the business at issue, and believe it would be most appropriate for me not to participate in this matter. As such, I will recuse myself and step out of the room. The following is an example of appropriate language where the Councilmember determines that he/she does not need to recuse themselves from the matter: Following careful analysis and consideration, I think it is appropriate for me to participate in the discussion and decision on this matter. Although I am somewhat familiar with this matter from my prior friendship with *, I believe I can be objective and unbiased. As such, I will not recuse myself, and will participate with the rest of the Council in the discussion and decision. Page 24 of 63 18. Ordinances Except for unusual circumstances or emergencies, ordinances and resolutions shall customarily be prepared, introduced and proceed in accordance with the "Three Touch Principle." Prior to final passage of all ordinances or resolutions, such documents shall be designated as drafts. a. A Councilmember may, in open session, request of the Presiding Officer that the Council consider enacting an ordinance for a specific purpose. The Presiding Officer then may assign the proposed ordinance to the administration, a committee, or the Council for consideration. The committee or administration shall report its findings to the Council. The City Manager may propose the drafting of ordinances (RCW 35A.1321). Citizens, Boards and Commissions may also propose consideration of ordinances and resolutions. b. Sponsorship. When a Councilmember wishes to assume sponsorship of an ordinance or resolution, once on the agenda, he or she should so announce, make the initial motion and provide an introduction of the measure. c. Ordinances shall normally have two separate readings at separate Council meetings. Unless waived by the City Council at each reading, the title of an ordinance shall be read by the City Clerk prior to its passage. However, if a Councilmember requests that the entire ordinance or certain sections be read, such request shall be granted. Printed copies shall be available upon request to any person attending a Council meeting. d. The provision requiring two separate readings of an ordinance may be waived at any meeting of the Council by a majority vote of all members present. (This would require a successful motion to suspend the rules and pass the ordinance on a first reading.) e. If a motion to pass an ordinance to a second reading fails, the ordinance shall be considered lost, unless a subsequent motion directs its revision and resubmission to first reading. f. Any ordinance repealing any portion of the Spokane Valley Municipal Code shall also repeal the respective portions of the underlying ordinance(s). Ordinances repealing earlier ordinances shall not apply to acts, incidents, transactions or decisions occurring before such repeal. g. Council may not pass a franchise ordinance at a special meeting [RCW 35A.47.040]. h. The passage of any ordinance, grant or revocation of franchise or license shall require the affirmative vote of at least a majority of the whole membership of the Council. i. The passage of any public emergency ordinance (an ordinance that takes effect immediately), expenditures for any calamity, violence of nature, riot, insurrection, or war; and provisions for a lesser emergency, such as a budget amendment (RCW 35A.33.09022), shall require the affirmative vote of at least a majority plus one of the whole membership of the Council. (RCW 35A.13.19023) 19. Resolutions A resolution may be approved on the same day it is introduced. While it is not necessary to have the title of a resolution read aloud, Council may invoke the two reading procedures described above to facilitate public understanding and/or comment on the resolution. If Council invokes the two reading procedures, a Councilmember may request that the entire resolution or certain sections be read, and such request shall be granted and the City Clerk shall read as requested. Printed copies shall be made available upon request to any person attending a Council meeting. a. The passage of any resolution for the payment of money, any approval of warrants, and any resolution for the removal of the City Manager shall require the affirmative vote of at least a majority of the whole membership of the Council. 20. Taxes: Increasing or Imposing New Taxes The Council strongly believes in fiscal restraint, and that increasing the tax burden on its property owners and citizens by increasing or imposing new taxes should be avoided except as a last resort. In addition to complying with all applicable statutory requirements, increasing or imposing new taxes should only be done as follows: Page 25 of 63 a. As requested by the City Council, the City Manager in consultation with the Finance Director, shall notify the City Clerk of Council's desire for a proposed ordinance, and ask the City Attorney to prepare a draft ordinance. b. Within 14 days following notice to the City Clerk, the City Clerk shall publish a notice of public hearing once a week for two consecutive weeks in the official newspaper of the City, stating • the date, time and place of Council's public hearing • the purpose of the hearing: that a tax increase or new tax has been proposed • that a copy of the proposed draft ordinance shall be furnished to any City taxpayer who requests it; and • that any City taxpayer may appear and provide verbal or written comment for or against the proposed draft ordinance. c. Preceding such public hearing, staff will provide an administrative report to Council describing the financial deficit and need for the increased or new tax; and if Council concurs and after the public hearing, the proposed draft ordinance shall proceed as follows: • Proceed with a first reading of the proposed draft ordinance • Second reading of the proposed draft ordinance. d. Approval of increasing or imposing new taxes requires an affirmative vote of a majority plus one of the whole Council. 21. Hearings: [note: See Appendix A for quasi-judicial hearings] 1. Purpose a. Held to obtain public input on legislative decisions on matters of policy b. Are required by state law in such matters as comprehensive plan use plans, or annual budget c. Do not involve legal rights of specific private parties in a contested setting d. Affect a wide range of citizens or perhaps the entire jurisdiction e. Decisions reached as a result of these hearings are not second-guessed by the courts, and if challenged, are reviewed only to determine if they are constitutional or violate state law 2. Process a. State statutes do not specify how public hearings should be conducted. Because legislative hearings are generally informal, the main concern is to provide an opportunity for all attending members of the public to speak if they so desire. Time limits should be placed on individual comments if many people are intending to speak, and the public should be advised that comments must relate to the matter at hand. The "ground rules" for the conduct of the hearing may be stated by the Presiding Officer at the beginning of the hearing: 1. All public comments shall be made from the speaker's podium, shall be directed to the Mayor and Council, and any individual making comments shall first give their name and city of residence. This is required because an official recorded transcript of the public hearing is being made. 2. No comments shall be made from any other location, and anyone making "out of order" comments shall be subject to removal from the meeting. 3. Unless otherwise determined by the Presiding Officer, all comments by the public shall be limited to three minutes per speaker 4. At the discretion of the Presiding Officer, members of the public shall only speak once per issue. 5. There shall be no demonstrations, applause or other audience participation, before, during or at the conclusion of anyone's presentation. Such expressions are disruptive and take time away from the speakers. 6. Unless read and/or handed in by the individual speaker during the public hearing, previously received written public comments shall be read by the City Clerk at the pleasure of the Mayor. In the interest of time, the Mayor may limit the reading of such comments, to the Clerk reading who Page 26 of 63 the letter or written material is from, and if easily discernible, whether that person is for or against the issue at hand. All written comments become an official part of the record. 7. These rules are intended to promote an orderly system of holding a public hearing, to give persons an opportunity to be heard, and to ensure that individuals are not embarrassed by exercising their right of free speech. b. The Presiding Officer declares that the public hearing on the topic at hand is open, notes the time for such opening, and asks staff to make their presentation. c. After staff presentations, the Presiding Officer calls for public comments. d. The Presiding Officer asks if any members of Council have questions of any of the speakers or staff. If any Councilmember has questions, the appropriate individual shall be recalled to the podium. e. The Presiding Officer declares the public hearing closed and notes the time for such closing. 22. Reconsideration The purpose of reconsidering a vote is to permit change or correction of an erroneous action, or to take into account added information or a changed situation that has developed since the taking of the vote. Any action of the Council, including final action on applications for legislative changes in land use status, shall be subject to a motion to reconsider except: 1. any action previously reconsidered; 2. motions to adjourn or motions to suspend the rules; 3. an affirmative vote to lay an item on, or take an item from, the table; 4. a previously passed motion to suspend the rules; or 5. a vote electing to office one who is present and does not decline. Such motion for reconsideration: 1. shall be reconsidered during the same Council meeting; 2. shall be called up when no business is pending (no action is pending); 3. if action is pending, the Mayor asks the Clerk to note that the motion to reconsider has been made and shall be taken up when a member calls the motion to reconsider the vote when no other business (action ) is pending; 4. shall be made by a member who voted on the prevailing side on the original motion. This means a reconsideration can be moved only by one who voted aye if the motion involved was adopted, or no if the motion was lost. It is permissible for a Councilmember who cannot make such a motion, but believes there are valid reasons for one, to try to persuade someone who voted on the prevailing side, to make such a motion. 5. a member who makes this motion should state that he or she voted on the prevailing side; 6. needs a second, and can be seconded by any member; 7. is debatable if the type of motion it reconsiders is debatable; and 8. is not amendable and requires a majority vote to adopt. Step 1: A member of Council who voted on the prevailing side makes the motion, such as "I move to reconsider the vote on the resolution relating to holidays. I voted for [or against] the resolution." This motion needs a second, which can be seconded by any Councilmember. Step 2: If the motion for reconsideration is adopted, the original motion is then placed before Council as if that motion had not been voted on previously; and Council again takes that motion under discussion, followed by a new vote. Any motion for reconsideration of a matter which was the subject of a required public hearing or which is a quasi-judicial matter, may not be discussed or acted upon unless and until the parties or their attorneys and the persons testifying have been given at least five days advance notice of such discussion and/or action. Page 27 of 63 23. Council Materials a. Council Material Councilmembers and staff should read the agenda material and ask clarifying questions of the City Manager or other appropriate staff prior to the Council meeting when possible. Council recognizes there are times when Councilmembers may wish to bring additional documentation to a meeting on a specific subject, whether that subject is on the agenda or not, in order to share with Council and staff. When possible, the materials should be distributed to Councilmembers and staff prior to the Council meeting, or if distributed during a meeting, Councilmembers should indicate the materials are for future reading, since except in an emergency, Councilmembers would normally not take time at the dais to read material just received. Pre -scheduled materials Council wishes to share as part of the Council packet could also be included on study session agendas under "Council Comments." b. Council Packets Councilmembers shall personally pick up their agenda packets from their City desk, unless otherwise arranged by the Councilmember or further directed by Council. Councilmembers have the option of accessing their Council packet via the City's website. Unless notified otherwise, the City Clerk shall prepare a hard copy agenda packet for individual Councilmembers. c. Packet Materials Request for Council Action form (RCA): This is a cover sheet used by staff to introduce an agenda item. It includes the agenda item title, citing of governing legislation associated with the topic, previous Council action taken, and background on the topic. Options for Council consideration are also included, as well as a staff recommended action or motion. The options and recommended action or motion should be viewed as aids to Council in making a motion or taking action, but should not be thought of as obligatory, as Council always has the option of making a motion different from what is included on the form. Generally, by the time an item is ready for a motion, Council has already read, heard, and/or discussed the item at least three times (as an informational item, an administrative report, and lastly as an action item), and the wording of a motion would not normally be controversial, although it is important to state the motion as a motion, such as "I move to" or "I move that" or other similar language. 24. "Three Touch Principle" Decision makers and citizens at all levels of the City should have adequate time to thoroughly consider the issues prior to final decisions. It is the intent of the Council that the Council and administration shall abide by the "Three Touch Principle" whenever possible. These procedural guidelines are designed to avoid "surprises" to the City Council, citizens and administrative personnel. Any request or proposal for adopting or changing public policy, ordinances, resolutions or City Council directives which require a decision of the City Council or administration, should "touch" the decision makers three separate times. This includes verbal or written reports, "information only" agenda items, or any combination thereof. To facilitate the Council's strategic use of legislative time at its meeting, staff may satisfy the first touch by issuing an informational memorandum, unless the subject matter is complex in nature. Quasi-judicial matters and any subject discussed in executive sessions are excluded from application of the "Three Touch Principle." It is recognized that unexpected circumstances may arise wherein observance of the "Three Touch Principle" is impractical. However, when unusual circumstances arise which justify a "first discussion" decision, the persons requesting the expedited decision should also explain the timing circumstances. This principle excludes staff reports and other general communications not requiring a Council decision. Page 28 of 63 CHAPTER 2 Legislative Process Page 29 of 63 A. Election of Officers Procedures for electing officers are as follows: 1. Biennially, at the first meeting of the new Council, the members thereof shall choose a Presiding Officer from their number who shall have the title of Mayor. In addition to the powers conferred upon him/her as Mayor, he/she shall continue to have all the rights, privileges and immunities of a member of the Council. If a permanent vacancy occurs in the office of Mayor, the members of the Council at their next regular meeting shall select a Mayor from their number for the unexpired term. Following the election of the Mayor, election of a Deputy Mayor shall be conducted in the same manner. The term of the Deputy Mayor shall run concurrently with that of the Mayor. (RCW 35A.13.03024) 2. The election for Mayor shall be conducted by the City Clerk. The City Clerk shall call for nominations. Each member of the City Council shall be permitted to nominate one person, and a nomination shall not require a second. A nominee who wishes to decline the nomination shall so state at that time. Nominations are then closed. The election for Deputy Mayor shall be conducted by the Mayor, and nominations shall be made in the manner previously described for the election of the Mayor. 3. Except when there is only one nominee, election shall be by written ballot. Each ballot shall contain the name of the Councilmember who cast it. Selection of Mayor and of Deputy Mayor shall each be determined by majority vote of Councilmembers present. The City Clerk shall publicly announce the results of the election. Thereafter, the City Clerk shall record the individual Councilmember's vote in the minutes of the meeting. 4. If the first round of votes results in no majority vote of Councilmembers present, the voting process shall be repeated no more than two more times. During subsequent votes, Councilmembers do not have to vote the same as they did in the previous vote. If after three attempts, Council is unable to agree on a Mayor by majority vote of Councilmembers present, the office of Mayor shall be temporarily filled by an Acting Mayor, which shall be the Councilmember who just previously served as Mayor if that person is still a member of Council, or if the previous Mayor is no longer a Councilmember, then by the Deputy Mayor, or if such person prefers not to serve as Mayor or if that person is no longer a member of Council, the Councilmember with the next highest seniority. The Acting Mayor shall continue in office and exercise such authority as is described in RCW 35A.1325 until the members of the Council agree on a Mayor, which shall be determined at the next scheduled Council meeting, at which time the role of Acting Mayor shall cease and terminate. 5. At the next scheduled Council meeting voting for Mayor shall proceed in the same manner as the initial first round of voting from the previous Council meeting, but Councilmembers shall only vote on the Councilmembers who received the highest number of votes. If after three voting attempts, there is still no majority vote of Councilmembers present, the vote shall be determined by whichever Councilmember has the most votes at the third voting attempt. If at that time, there is a two-way tie of Councilmembers receiving the most votes, the tie shall be broken based on the flip of a coin. The City Manager shall flip the coin. If there are more than two Councilmembers tying with the most votes, that tie shall be determined by another means of chance to narrow the Councilmembers down to two, at which time the outcome shall be determined by written ballot. Page 30 of 63 B. Filling Council Vacancies: Permanently Filling a Vacancy 1. General Process: (Note that public comment shall not be taken during this entire process.) If a vacancy occurs on the City Council, the Council shall follow the procedures outlined in RCW 35A.13.02026 and Council's adopted procedure in compliance with RCW 35A.13.02027,as well as RCW 42.12.07028. The timeline will vary depending on when the process begins. Pursuant to RCW 35A.13.020, City Council has 90 days from the vacancy to appoint a qualified person to the vacant position. If this timeframe is not met, the City's authority in this matter would cease and the Spokane County Board of Commissioners would appoint a qualified person to fill the vacancy. In order to be qualified to run for Spokane Valley City Council, or hold such position, a person must be [RCW 42.04.020] a citizen of the United States, 18 years of age or older, a resident of the City of Spokane Valley for a year or more preceding his or her election, a registered voter in the City of Spokane Valley at the time of filing the declaration of candidacy, and cannot be a convicted felon (unless those civil rights have been restored pursuant to Ch. 9.96 RCW). Per RCW 42.12, remaining members of Council shall appoint a qualified person to fill the vacancy as an interim position who will serve from the date of appointment until the person elected in the November odd - numbered year general election takes office, which is the date the election results are certified, normally around the 26th of November. (See also 35A.12.040) Immediately upon the election being certified, that just -elected person will take the oath of office, take their position as a member of Council, and complete the remainder of the unexpired term. a. Procedure for Filling a Council Vacancy, Timeline/Procedure-Publication: The City Clerk shall publish the vacancy announcement inviting citizens of the City who are interested and qualified to sit as a Councilmember, to apply on an application form provided by the City. Qualifications to sit as a Councilmember are set forth in RCW 35A.13.020, which refers to RCW 35A.12.030: (1) must be a registered voter of the city at the time of filing his or her declaration of candidacy; (2) has been a resident of the city for a period of at least one year next preceding his or her election. Additional qualifications include never having been convicted of a felony, and that Councilmembers shall not hold any other office or employment within the Spokane Valley City government [RCW 35A.12.030]. In order to avoid any real or perceived conflict of interest, no member of Council's immediate family may be currently employed by the City of Spokane Valley since employment is considered a contractual matter, and a councilmember would have a prohibited interest in a contract between a family member who is an employee of the city, and the city. (See Appendix A Definitions for description of immediate family.) If possible, the vacancy announcement shall be published for three consecutive weeks. b. The City Clerk shall establish the deadline to receive applications, for example, no later than 4:00 p.m. on a certain date. c. As per RCW 42.30.110(1)(h), set a special meeting with an executive session beginning at 5:00 p.m. Council shall meet and adjourn to executive session to review and discuss all of the applications. After the review and discussion, Council shall return to Council Chambers and the Special Meeting shall be adj ourned. d. Hold a regular 6:00 p.m. meeting, same evening as above special meeting. Per RCW 42.30.110(1)(h), Council shall meet in open session and part of this agenda shall include selection of applicants to interview. Selection shall be by nomination and second. A vote shall be taken and candidates receiving three or more votes shall be interviewed Immediately after this Council meeting or as soon as practicable, the Clerk shall send a list of potential questions to all those to be interviewed. e. Schedule a regular 6:00 p.m. Council meeting to conduct the interviews. Per RCW 42.30.110(1)(h), the interviews shall be conducted during an open Council meeting. Each interview shall be a maximum of 30 minutes. f. Schedule a special 5:00 p.m. meeting with an executive session. Per RCW 42.30.110(1)(h), Council shall meet and adjourn to executive session (closed session) to discuss applicants. After the discussion, the Special Meeting shall be adjourned as usual. Page 31 of 63 g. Hold a regular 6:00 p.m. meeting, same evening as f above special meeting. Per RCW 42.30.110(1)(h), Council shall meet in open session; and the last action item of that agenda will include a vote to fill the vacancy. Upon selection of the new Councilmember, that person shall be sworn in by the City Clerk, and take their seat at the dais. 2. Nomination Options for Conducting Interviews: a. After holding an executive session to review applications, during a subsequent open session, any Councilmember may • nominate an applicant to be interviewed • the nomination must be seconded • Councilmembers may make more than one nomination, but only one at a time • the Mayor shall ask if there are further nominations • if no further nominations, the Mayor shall close the nominations • votes shall be taken on each applicant in the order of nomination • votes shall be by raised hand • applicants receiving three or more votes shall be interviewed • once all voting has taken place, the City Clerk shall summarize which applicants shall be interviewed based on the voting outcome • as soon as possible after the Council meeting, the City Clerk shall notify each applicant to inform them if they will or will not be interviewed; notify those to be interviewed of the date and time for their interview, and send each person to be interviewed the list of possible interview questions OR • Instead of the above nomination process, after holding an executive session to review applications, Council may choose to interview all applicants. • the length of the interview shall be determined based upon the number of applicants • interviews shall be done in last -name alphabetical order • the City Clerk shall notify all applicants of the date, time and procedure for their interview • to keep the process as fair as possible, on the date of the interview, applicants not yet interviewed shall be asked to wait in a waiting area outside the Council Chambers. OR If during open session, Council has nominated only one person to interview, or in the case of more than one vacancy, one person per vacancy, Council may forego the interview process and move to make the appropriate appointment. 3. Interview Questions/Process: a. During the interview, each Councilmember may ask each candidate up to three questions. Follow-up questions are to be counted as one of the three questions. b. Candidates shall be interviewed in alphabetical order of last name. c. Candidates should be prepared to answer any of the following questions, even though every question might not be asked of each candidate, and Council has the option of asking questions not included in this list of potential questions. Council has the option of asking follow-up questions up to a total of three questions per candidate. Follow-up questions are included as part of and not in addition to, the three maximum questions. d. Potential Council Applicant Interview Questions: 1. What is a Councilmember's primary responsibility to the citizens of Spokane Valley? 2. What are the most important issues our City faces today? 3. Please explain your view of the most difficult aspect of being a Councilmember. 4. What do you think is the biggest challenge facing the City Council? 5. What are the three highest priorities the City needs to address and how do you propose to address these issues? Page 32 of 63 6. As a Councilmember, one of the most challenging issues we face is balancing the City budget. Keeping in mind that the majority of our revenue is from sales tax and property tax, how would you propose to strike a balance between revenues and expenses; and at what point, if at all, would you support additional revenues to maintain service levels? 7. Discuss your ideas on pavement preservation including solutions for long-term sustainability of our roads. 8. How can we determine what the citizens want for the future of Spokane Valley? 9. What do you envision the City of Spokane Valley will be like ten and twenty years from now? 10. All total, Councilmembers serve on numerous different boards, committees, councils and task forces. Does your life style allow you to serve on outside committees and share these responsibilities? It could mean several additional hours per month in addition to your Council duties. 11. Do you plan to run and/or actively campaign for the November election for what will be a four-year term? 12. Have you attended Spokane Valley City Council meetings in the past? 13. What did you discover from attending Council meetings? 14. Why do you want to be on the City Council? 15. Please explain your familiarity with and understanding of our City's form of government, including the difference between Council and staff responsibilities. 16. What do you hope to accomplish as a Councilmember and what do you offer the City? 17. If the majority of the Council took a position that you were against, how would you handle your response to the public and/or media? 18. As a Councilmember, what new or different perspective would you bring to the City Council? 19. Are you aware and knowledgeable about the Open Public Meeting Act? 20. Are you aware and knowledgeable about the Public Record Act? 4. Nomination and Voting Process to Select Applicant: a. Nomination Process: Councilmembers may nominate an applicant to fill the vacancy. A second is required. If no second is received, that applicant shall not be considered further unless no applicant receives a second, in which case all applicants who were nominated may be considered again. Councilmembers may not make more than one nomination unless the nominee declines the nomination and unless there is no second to the nomination; in which case the Councilmember make another nomination. Once the nominations are given, the Mayor shall close the nominations and Council shall proceed to vote. b. Voting Process. RCW 42.12.070 states that where one position is vacant, the remaining members of the governing body shall appoint a qualified person to fill the vacant position. By adoption of this policy, Council has chosen the following process for making such appointment: • Except when there is only one nominee, a vote for an applicant shall be by written ballot. Each ballot shall contain the name of the Councilmember who cast it. • The vacancy may only be filled when a majority of the remaining City Council (whether present or not) affirmatively votes for the applicant, i.e. if five City Councilmembers are present, this would require at least four Councilmembers voting for an applicant. If subsequent rounds of voting are needed, each round of voting follows the same process. The Mayor may ask for Council discussion between voting rounds. • Round One Vote: The City Clerk shall publicly announce the results of the election. The applicant receiving the majority of votes shall be the new Councilmember. If no applicant receives a majority of votes from the City Council, then the three applicants receiving the most affirmative votes would be considered in a second round. • Round Two Vote: Round Two proceeds the same as Round One. If one of the three applicants still fails to receive a majority of affirmative votes, then the two applicants of the three who received the most affirmative votes would then be considered in a third round; or if there are Page 33 of 63 only two applicants and they receive tie votes, a third round shall be taken. Councilmembers may change their vote between rounds. • Round Three Vote: Round Three proceeds the same as Rounds One and Two. If after this round, the vote of the two applicants results in a tie, then the City Manager, with concurrence of Council shall flip a coin to determine who shall fill the vacancy, with the applicant whose last name is closest to the letter A being assigned "heads" and the other person assigned "tails." In the rare circumstance where both applicants' last name begins with the same letter of the alphabet, the applicant whose entire last name is closest to the letter A shall be assigned "heads" and the other person assigned "tails." In the equally rare circumstance where both applicants have the same last name, the applicant whose first name is closest to the letter A shall be assigned "heads" and the other person assigned "tails." 5. Seating of New City Councilmember: Once an applicant either has received a majority of votes or wins the coin flip, if the appointed applicant is at the meeting, the City Clerk shall administer the oath of office, and the new Councilmember shall be officially seated as a City Councilmember. If the appointed applicant is not at the meeting, such action is not official until the applicant takes the oath of office. Page 34 of 63 C. Legislative Agenda Councilmembers work each year (or sometimes every two years) to draft a "legislative agenda" to address Council ideas, suggestions and specific legislative programs in terms of upcoming or pending legislative activity in Olympia that would or could have an effect on our City. Additionally, Councilmembers have the option of creating a similar legislative agenda to address concerns on a national level, which can be addressed during Council's participation in the annual National League of Cities Conferences held in Washington, D.C. D. Council Travel Provisions Council is allocated a budget to handle certain City business-related travel expenses. The total allocation of travel funding budgeted for the legislative branch for the fiscal year shall be apportioned one-seventh (1/7) to each Councilmember. These monies may be used to defray expenses for transportation, lodging, meals and incidental expenses incurred in the conduct of City business. Periodic updated statements of expenditures shall be provided to each Councilmember by the Finance Department. Should a Councilmember exhaust their apportionment of funds, that person shall be responsible for payment of any travel and related expenses, or they may request a voluntary allocation from another Councilmember who has a balance in their travel apportionment. To be reimbursed for expenses incurred as part of City business, Councilmembers should timely submit detailed receipts with their reimbursement form. During the last six months of a Councilmember's current term of office, incurring City business-related travel expenditures requires the prior authorization of the Finance Committee, except when such travel fulfills the obligations of the Councilmember's service on statewide or regional boards, commissions or task forces. E. Ballot Measures: 1. State Law RCW 42.17A 555. State law has enacted statutory prohibitions (with limited exceptions) against the use of public facilities to support or oppose ballot propositions: "No elective official nor any employee of his or her office nor any person appointed to or employed by any public office or agency may use or authorize the use of any of the facilities of a public office or agency, directly or indirectly, for the purpose of assisting a campaign for election of any person to any office or for the promotion of or opposition to any ballot proposition. Facilities of a public office or agency include, but are not limited to, use of stationery, postage, machines, and equipment, use of employees of the office or agency during working hours, vehicles, office space, publications of the office or agency, and clientele lists of persons served by the office or agency. However, this does not apply to the following activities: (1) Action taken at an open public meeting by members of an elected legislative body or by an elected board, council, or commission of a special purpose district including, but not limited to, fire districts, public hospital districts, library districts, park districts, port districts, public utility districts, school districts, sewer districts, and water districts, to express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or ordinance, or to support or oppose a ballot proposition so long as (a) any required notice of the meeting includes the title and number of the ballot proposition, and (b) members of the legislative body, members of the board, council, or commission of the special purpose district, or members of the public are afforded an approximately equal opportunity for the expression of an opposing view. (2) A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry; (3) Activities which are part of the normal and regular conduct of the office or agency." [emphasis added] Page 35 of 63 2. City's Implementation of RCW 42.17A.555 In the City's implementation of RCW 42.17A.555, the City Council shall not, during any part of any Council meeting, consider requests from outside agencies for Council to support or oppose ballot measures; nor shall Council permit any public comment on any proposed or pending ballot issue, whether or not such comments seek endorsement or are just to inform Council of upcoming or proposed ballot issues; nor shall Councilmembers disseminate ballot -related information. 3. Providing Informative Materials to Council The requestor has the option of mailing materials to individual Councilmembers via the United States Postal Office. Because even the use of e-mail for ballot purposes could be construed as use of public facilities and could be interpreted as being in violation of RCW 42.17A.555, materials should be sent via regular mail through the United States Postal Office. Information shall be objective only and not soliciting a pro or con position. 4. Public Comment. Council has chosen not to support or oppose ballot issues as those are left to the will of the people voting. The use of any of the City's facilities including the use of the Council chambers and/or broadcast system would likely be construed as being in violation of RCW 42.17A.555 and therefore, general public comment on ballot issues, or proposed ballot issues shall not be permitted. Page 36 of 63 CHAPTER 3 Council Contacts Page 37 of 63 A. Citizen Contact/Interactions Outside of a Council Meeting 1. Mayor/Council Correspondence Councilmembers acknowledge that in the Council/Manager form of government, the Mayor is recognized by community members as a point of contact. To facilitate full communications, staff shall work with the Mayor to circulate to Councilmembers, copies of emails and written correspondence directed to the Mayor regarding City business. This provision shall not apply to invitations for mayoral comments at various functions, nor requests for appointments or other incidental contact between citizens and the office of the Mayor. 2. Concerns, Complaints and Suggestions to Council When citizen concerns, complaints or suggestions are brought to any, some, or all Councilmembers, the Mayor shall, in consultation with the City Manager, first determine whether the issue is legislative or administrative in nature and then: a. If legislative, and a concern or complaint is about the language or intent of legislative acts or suggestions for changes to such acts, and if such complaint suggests a change to an ordinance or resolution of the City, the Mayor and City Manager may refer the matter to a future Council agenda for Council's recommendation in forwarding the matter to a committee, administration, or to the Council for study and recommendation. b. If administrative, and a concern or complaint regards administrative staff performance, execution of legislative policy or administrative policy within the authority of the City Manager, the Mayor should then refer the complaint directly to the City Manager for review, if said complaint has not been so reviewed. The City Council may direct that the City Manager brief the Council when the City Manager's response is made. 3. Administrative Complaints Made Directly to Individual Councilmembers When administrative policy or administrative performance complaints are made directly to individual Councilmembers, the Councilmember shall then refer the matter directly to the City Manager for review and/or action. The individual Councilmember may request to be informed of the action or response made to the complaint. However, the City Manager shall not be required to divulge information he/she deems confidential, in conformity with applicable statutes, ordinances, regulations, policies or practices. Although citizens' direct access to elected officials is to be encouraged to help develop public policy, City Councilmembers should not develop a "personal intervention" pattern in minor calls for service or administrative appeals which may actually delay a timely customer service response. The best policy is to get the citizen into direct contact with customer service unless an unsatisfactory result has occurred in the past. In that case, refer to the paragraph above. 4. Social Media Councilmembers shall not use social media as a mechanism for conducting official City business, although it is permissible to use social media to informally communicate with the public. Examples of what may not be communicated through the use of social media include making policy decisions, official public noticing, and discussing items of legal or fiscal significance that have not been released to the public. As with telephone and e-mails, communication between and among Councilmembers via social media could constitute a "meeting" under the Open Public Meetings Act, and for this reason, Councilmembers are strongly discouraged from "friending" other Councilmembers. 5. Donations On occasion, Councilmembers could be contacted by citizens or businesses regarding donations. The City has administrative procedures to receive donations, and Councilmembers should direct the donor to contact the appropriate City staff. Councilmembers shall not accept nor physically receive any Page 38 of 63 donation. Councilmembers shall always be cognizant of their ethical responsibilities when discussing donations with citizens, including but not limited to a responsibility to avoid conflicts of interest, the prohibition on creating a special privilege or exemption for themselves or others, and from disclosing confidential information of the City. Councilmembers should avoid circumstances which are likely to give rise to a perception of a conflict of interest or of providing or procuring a special privilege or exemption. B. Staff Contacts and Interactions 1. Role of the City Manager The City Manager is the chief administrative officer of the City of Spokane Valley. The City Manager is directly accountable to the City Council for the execution of the City Council's policy directives, and for the administration and management of all City departments. The powers and duties of the City Manager are defined by Washington law RCW 35A.13.080. Such duties may be expanded by Ordinance or Resolution. Balanced with the City Manager's accountability to the City Council for policy implementation is the need for the Council to allow the City Manager to perform legally defined duties and responsibilities without interference by the City Council in the day-to-day management decisions of the City Manager. 2. City Staff Attendance at Meetings The City Manager or his/her designee shall attend all meetings of the City Council, unless excused by the Presiding Officer or Council. The City Manager shall be responsible to the Council for the proper administration of all affairs of the City. The City Manager shall recommend for adoption by the Council such measures as he/she may deem necessary or expedient; prepare and submit to the Council such reports as may be required by the body or as the City Manager deems advisable to submit; keep the Council fully advised as to the business of the City; and shall take part in the Council's discussion on all matters concerning the welfare of the City. (RCW 35A.13.080) It is Council's intent that the City Manager schedule adequate administrative support during Council meetings for the business at hand, keeping in mind that the City Manager must also protect the productive capability of department heads and of all staff. Required attendance at meetings by City staff shall be at the pleasure of the City Manager. 3. City Clerk - Minutes The City Clerk, or in the Clerk's absence the Deputy City Clerk shall keep minutes as required by law, and shall perform such other duties in the meeting as may be required by the Council, Presiding Officer, or City Manager. In the absence of the City Clerk and the Deputy City Clerk, the City Clerk shall appoint a replacement to act as Clerk during the Council meeting. The Clerk shall keep minutes which identifies the general discussion of the issue and complete detail of the official action or agreement reached, if any. As a rule and when possible and practical, regular meetings, or those Council meetings held at 6 p.m. on Tuesdays, (which includes formal format and study session format) shall be video -recorded. Special meetings shall not normally be video -recorded. Executive Sessions shall not be video or audio recorded. Original, signed and approved minutes shall be kept on file in the City Clerk's office and archived according to State Record Retention Schedules. Copies of the approved minutes shall also be posted on the City's website as soon as practical after such minutes are approved and signed. Whenever possible, video recordings of Council meetings shall be posted on the City's website. 4. Administrative Interference by Councilmembers Neither the Council nor any of its committees or members shall direct or request the appointment of any person to, or his/her removal from, any office by the City Manager or any of his/her subordinates. Except for the purpose of inquiry, the Council and its members shall deal with the administrative branch solely through the City Manager and neither the Council nor any committee or member thereof shall give any directives, tasks, or orders to any subordinate of the City Manager, either publicly or privately; provided, however, that nothing herein shall be construed to prohibit the Council, while in open session, from fully Page 39 of 63 and freely discussing with the City Manager anything pertaining to appointments and removals of City officers and employees and City affairs. (RCW 35A.13.120.) 5. Informal Communications Encouraged The above RCW requirement is not to be construed as to prevent informal communications with City staff that do not involve orders, direction, or are meant to influence actions or administrative policy. Members of the Council are encouraged to interact informally and casually with City staff for the purpose of gathering information, obtaining explanations of policies and programs or providing incidental information to staff relevant to their assignment. Such informal contacts can serve to promote better understanding of specific City functions and problems. However, Councilmembers must be careful in such interaction to avoid giving direction or advice to members of City staff. While maintaining open lines of communication, City staff responding to information requests from Councilmembers shall inform their supervisor of such contact and provide the supervisor with the same information shared with the Councilmember. Page 40 of 63 CHAPTER 4 -STATE STATUTES Wat15 REVIRED CODE OF WASHINGTON ANNOTATED Parallel Refererice 'Tables Cumulative Su pp lenient Page 41 of 63 A. OPEN PUBLIC MEETINGS ACT "The legislature finds and declares that all public commissions, boards, councils, committees, subcommittees, departments, divisions, offices, and all other public agencies of this state and subdivisions thereof exist to aid in the conduct of the people's business. It is the intent of this chapter [RCW 42.30.010] that their actions be taken openly and that their deliberations be conducted openly." B. PUBLIC DISCLOSURE 1. Public Disclosure File The City Clerk shall maintain a public disclosure file, which shall be available for inspection by the public. As to elected officials, the file shall contain copies of all disclosure forms filed with the State Public Disclosure Commission. 2. Public Records Act Adopted in 1972 by Initiative 276; now RCW 42.56: "The people of this state do not yield their sovereignty to the agencies that serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may maintain control over the instruments they have created." a. A Public Record includes any writing containing information relating to the conduct of government or the performance of any governmental or proprietary function prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics. b. Local governmental entities are mandated to adopt and enforce reasonable rules governing how the agency responds to requests [RCW 42.56.100] [See Spokane Valley Municipal Code 2.75] c. State statute requires a response within five business days, therefore, requests for public records should always be routed to the City Clerk for prompt handling. (A response can constitute an acknowledgement of receipt of the request, with an estimated time given of when the request can be completed.) C. Appearance of Fairness Doctrine a. "The test of whether the Appearance of Fairness Doctrine has been violated is ... as follows: Would a disinterested person, having been apprised of the totality of a board member's personal interest in a matter being acted upon, be reasonably justified in thinking that partiality may exist? If answered in the affirmative, such deliberations, and any course of conduct reached thereon, should be voided." Swift vs. Island County, 87 Wn.2d 348 (1976); Smith vs. Skagit County, 75 Wn.2d 715 (1969). b. Obligations of Councilmembers - Procedure. Immediate self -disclosure of interests that may appear to constitute a conflict of interest is hereby encouraged. Councilmembers should recognize that the Appearance of Fairness Doctrine does not require establishment of a conflict of interest, but whether there is an appearance of conflict of interest to the average person. This may involve the Councilmember or a Councilmember's business associate, or a member of the Councilmember's immediate family. It could, for example, involve ex parte (outside a meeting or hearing) communications, ownership of property in the vicinity, business dealings with the proponents or opponents before or after a meeting or hearing, business dealings of the Councilmember's employer with the proponents or opponents, announced predisposition. Prior to any hearing or item for action (motion, resolution, ordinance), each Councilmember should give consideration to whether a potential violation of the Appearance of Fairness Doctrine exists. If the answer is in the affirmative, no matter how remote, the Councilmember should disclose such facts to the City Manager who will seek the opinion of the City Attorney as to whether a potential violation of the Appearance of Fairness Doctrine exists. The City Manager shall communicate such opinion to the Councilmember and to the Presiding Officer. Page 42 of 63 c. Anyone seeking to disqualify a Councilmember from participating in a decision on the basis of a violation of the Appearance of Fairness Doctrine must raise the challenge as soon as the basis for disqualification is made known, or reasonably should have been made known, prior to the issuance of the decision. Upon failure to do so, the doctrine may not be relied upon to invalidate the decision consistent with state law. The party seeking to disqualify the Councilmember shall state with specificity the basis for disqualification; for example: demonstrated bias or prejudice for or against a party to the proceedings, a monetary interest in outcome of the proceedings, prejudgment of the issue prior to hearing the facts on the record, or ex parte contact. Should such challenge be made prior to a motion or hearing, the City Manager shall direct the City Attorney to interview the Councilmember and render an opinion as to the likelihood that an Appearance of Fairness Doctrine violation would be sustained in Superior Court. Should such challenge be made in the course of a public meeting, the Councilmember shall either recuse him/herself or the Presiding Officer shall call a recess to permit the City Attorney to make such interview and render such opinion. d. The Presiding Officer shall have authority to request a Councilmember to excuse him/herself on the basis of a the Appearance of Fairness Doctrine. Further, if two or more Councilmembers believe that an Appearance of Fairness Doctrine violation exists, such individuals may move to request a Councilmember to excuse him/herself on the basis of an Appearance of Fairness Doctrine violation. In arriving at this decision, the Presiding Officer or other Councilmembers shall give due regard to the opinion of the City Attorney. Page 43 of 63 CHAPTER 5 COMMITTEES, BOARDS, COMMISSIONS Page 44of63 A. Regional Committees, Commissions and Boards 1. Committees Spokane Valley Councilmembers and/or residents who seek representation on any standing committee, board, or commission required by state law, shall be appointed by the Mayor with confirmation by the Council. Appointment Process: Any committee, board, commission, task force, etc., requiring Mayoral appointment of committee members, shall also require confirmation by the Council, which shall be by majority vote of those present at the time the confirmation vote takes place. By majority vote, Council can reject the appointment. If Council fails to confirm the recommended appointment, the Mayor could either make another recommendation, or the appointment may be postponed to a later date, giving City staff opportunity to further advertise for committee openings. 2. Council Relations with Boards, Commissions and Council Citizen Advisory Bodies Councilmembers are encouraged to share with all Council members, copies of minutes from any statutory boards, commissions, or committees on which they serve and participate. Communications from such boards, commissions and bodies to the City Council which seek action or feedback, should be acknowledged by the Council, preferably by a letter from the Mayor. Any member of the Council may also bring such communication to the Presiding Officer's attention under the agenda item "Committee, Board and Liaison Reports." If any member of the Council requests that any such communication be officially answered by the Council, the Presiding Officer may place the matter on an agenda under New Business, Information, Council Comments (study session format), or other appropriate place, for a specific Council meeting, or take other appropriate action. Councilmember(s) may be designated by the City Council to take the lead on particular significant issues and to provide appropriate feedback of information to Council, in order to gain corporate approval and coordination of corporate efforts. No Councilmember may speak for the Council unless Council has designated that person as the lead on that particular issue. B. In -House Committees, Boards, etc. 1. Standing committees or commissions required by law shall be appointed by the Mayor for a time certain not to exceed the term provided by law or the term of office of the appointing Mayor and confirmed by Council. Such appointments are generally made at the first or second meeting in January. Following are established in-house committees: a. Planning Commission -- 7 members. "SVMC 18.10.010 Establishment and purpose. There is created the City of Spokane Valley Planning Commission (hereafter referred to as the "Planning Commission"). The purpose of the Planning Commission is to study and make recommendations to the Mayor and City Council for future planned growth through continued review of the City's Comprehensive Land Use Plan, development regulations, shoreline management, environmental protection, public facilities, capital improvements and other matters as directed by the City Council. (Ord. 07-015 § 4, 2007). 18.10.020 Membership. A. Qualifications. The membership of the Planning Commission shall consist of individuals who have an interest in planning, land use, transportation, capital infrastructure and building and landscape design as evidenced by training, experience or interest in the City. B. Appointment. Members of the Planning Commission shall be nominated by the Mayor and confirmed by a majority vote of at least four members of the City Council Planning commissioners shall be selected without respect to political affiliations and shall serve without compensation. The Page 45 of 63 Mayor, when considering appointments, shall attempt to select residents who represent various interests and locations within the City. C. Number of Members/Terms. The Planning Commission shall consist of seven members. All members shall reside within the City. Terms shall be for a three-year period, and shall expire on the 31st day of December. D. Removal. Members of the planning commission may be removed by the mayor, with the concurrence of the City Council, for neglect of duty, conflict of interest, malfeasance in office, or other just cause, or for unexcused absence from three consecutive regular meetings. Failure to qualify as to residency shall constitute a forfeiture of office. The decision of the City Council regarding membership on the planning commission shall be final and without appeal. E. Vacancies. Vacancies that occur other than through the expiration of terms shall be filled for the unexpired term in the same manner as for appointments. F. Conflicts of Interest. Members of the planning commission shall fully comply with Chapter 42.23 RCW, Code of Ethics for Municipal Officers; Chapter 42.36 RCW, Appearance of Fairness; and such other rules and regulations as may be adopted from time to time by the City Council regulating the conduct of any person holding appointive office within the City. No elected official or City employee may be a member of the planning commission. (Ord. 07-015 § 4, 2007). b. Lodging Tax Advisory Committee -- 5 members. "SVMC 3.20.040 Lodging tax advisory committee. The City Council shall establish a lodging tax advisory committee consisting of five members. Two members of the committee shall be representatives of businesses required to collect the tax, and at least two members shall be persons involved in activities authorized to be funded by this chapter. The City shall solicit recommendations from organizations representing businesses that collect the tax and organizations that are authorized to receive funds under this chapter. The committee shall be comprised equally of members who represent businesses required to collect the tax and members who are involved in funded activities. One member of the committee shall be from the City Council Annually, the membership of the committee shall be reviewed. The Mayor shall nominate persons and the Councilmember for the lodging tax advisory committee with Council confirmation of the nominees. Nominations shall state the term of committee membership. Appointments shall be for one- and two-year terms. (Ord. 27 § 4, 2003)." c. Finance Committee-- 3 members. "SVMC 2.50.120(a) and (b) Establishing travel policies and procedures. a. The responsibility and authority for developing, adopting, modifying and monitoring the travel policies and procedures for reimbursement of expenses incurred while on official business of the City of Spokane Valley is delegated to the City Council Finance Committee. It is recognized by the City Council that public officials and employees will periodically be required to travel and incur related expenses on behalf of the City. The purpose of the travel policies and procedures is to provide criteria for payment and/or reimbursement of valid expenses. The Council directs that the Finance Committee consider the following in the development of travel policies and procedures: (A). Reimbursement for transportation costs when using personal automobiles including rates to be established on a mileage or other reasonable basis and for airfare or other mode of travel; (B). Reimbursement for hotel/motel accommodations; (C). Reimbursement for meals either at actual cost including a per meal maximum amount or a per diem allocation; (D). Reimbursement for incidental expenses such as parking, taxis, buses, rental cars, etc.; and (E). Such other matters that are reasonably related to travel. b. The finance department, under the supervision of the Finance Committee, is directed to develop a fully itemized travel expense form which shall be used to administer the City travel policy and account for expenditures and reimbursement of officials or employees. Claims for reimbursement must be accompanied by receipts showing the amount paid and items/services received unless otherwise provided in the policies and procedures. All claims for reimbursement Page 46 of 63 shall be duly certified by the individual submitting such claim on a form approved by the Finance Director in compliance with state regulations and guidelines established by the State Auditor. For administrative staff, the City Manager or designee shall approve expenses and reimbursement. The City Council shall approve, through budget allocation, travel expenses and reimbursement for Council members. The Council reserves the right to review the travel policies and procedures of the City including modifying and amending the same from time to time. (Ord. 29 § 1, 2003)." The Finance Committee shall have no regularly prescribed duties or meetings except the bills/payroll and warrant procedures required by state law, unless specifically charged by the City Council. The City Manager may also request meetings to discuss matters of financial interest with the Finance Committee. SVMC 3.35.010(D) Contract Authority The Finance Committee of the City Council is authorized to approve change orders on short notice that are in excess of the amounts authorized in subsection C of this section, in circumstances where such a change order is necessary to avoid a substantial risk of harm to the City. In such an event, the City Manager shall provide appropriate information to the City Council at its next regular meeting setting forth the factual basis for the action. (Ord. 07-004 §2, 2007; Ord. 03-072§ 2, 2003.). 2. When required by law, committee meetings should be open to the public, including the media, unless discussing matters which would qualify for an executive session if discussed within the whole Council. All Council committee meetings shall be for the purpose of considering legislative policy matters, rather than administrative matters unless requested by the City Manager. Legislative policy considerations should be brought to the Council unless referred to a committee for pre -study. 3. The Mayor may appoint such other ad hoc advisory committees or liaisons from the Council or community for the purpose of advising the Council in legislative policy matters. All ad hoc committees shall be defined by a clear task and a method of "sunsetting" the committee at the conclusion of the assigned task. As with all committee vacancies, ads announcing a vacancy or soliciting membership or participation in a task force or other committee shall be placed on the City's website, and in the City's official newspaper. 4. Council Liaison. Appointments shall be by the Mayor and confirmed by the Council for a time certain not to exceed the term of the appointing Mayor. Individual members of the Council may be assigned as liaisons whose duties involve keeping current with a group or activity by either attendance when the group or activity takes place, or communication with appropriate leaders so the liaison Councilmember can keep Council informed. Liaisons may, at times, advocate Council actions on behalf of their assigned group or activity. Extreme care must be taken to avoid an Appearance of Fairness Doctrine violation, or conflict of interest possibilities with agencies or circumstances where such possibilities may exist (i.e.: Planning Commission quasi-judicial). Liaison functions and duties may be further defined and/or directed by the Presiding Officer with concurrence of Council. 5. Task Force. The City Council may create, and confirm the Mayor's recommendation to appoint members to small task force groups. A task force is a temporary group formed and "tasked" by legislative authority to study a specific subject for a specified period of time. 6. After consultation with the City Manager, any other Council committees, citizen task forces or similar organized groups shall have rules or operating procedures thereof established by Council directive with special attention to RCW 35A.13.120. Such committees shall be commissioned for a time certain, not to exceed two years or the term of the appointing Mayor, whichever is less and be provided with a clear task description. Appointment shall be by the Mayor. Council may waive confirmation in the instrument creating said committee or group. Such committees shall be subject to review whenever a new Council is seated following elections, so as to determine whether the committee and its functions continue to be appropriate Page 47 of 63 and necessary. Members of any committee, board or commission which have been appointed or confirmed by the Council, may be removed without cause by a majority vote of the Council. No advisory board, commission, committee or task force shall take any final action outside of an open public meeting unless permitted to do so per state statutes, and when permitted by state statutes, no final action shall be taken without the foreknowledge and approval of majority vote of the Council. C. Private Committees, Commissions, and Boards The Council recognizes there are various other private boards and committees, such as Spokane Neighborhood Action Partners (SNAP), which appointments are made by their own board. These boards and committees which do not require an appointment by our Mayor, with confirmation by our Council, are nonetheless important aspects of our community and we recognize the time commitment any Councilmember may extend as a member of any of these committees and/or boards. As well, Council appreciates hearing a periodic report or update on activities and issues surrounding those boards and committees. Page 48 of 63 CHAPTER 6 Disclaimer DISCLAIMER A. Purpose These City Council Rules of Procedure are designed to provide guidance for the City Council. They are not to be considered restrictions or expansions of City Council authority. These rules have been prepared from review of many statutes, ordinances, court cases and other sources but they are not intended to be an amendment or substitute for those statutes, ordinances, court decisions or other authority. B. Use No action taken by a Councilmember or by the Council which is not in compliance with these rules, but which is otherwise lawful, shall invalidate such Councilmember's or Council action or be deemed a violation of oath of office, misfeasance or malfeasance. No authority other than the City Council may enforce these rules or rely on these rules. Failure of the City Council to follow any of these rules shall be considered a Council decision to waive such rule. No notice of such waiver need be given. C. Reliance Public Use or Reliance Not Intended. Because these rules are designed to assist the City Council and not to provide substantive rules affecting constituents, it is expressly stated that these rules do not constitute land use regulations, official controls, "appearance of fairness rules," public hearing rules, or other substantive rules binding upon or to be used by or relied upon by members of the public. These rules do not amend statutory or other regulatory (such as ordinance) requirements. Page 49 of 63 APPENDIX A Quasi -Judicial Hearings 1. Purpose Quasi-judicial public hearings involve the legal rights of specific parties, and the decisions made as a result of such hearings must be based upon and supported by the "record" developed at the hearing. Quasi-judicial hearings are subject to stricter procedural requirements than legislative hearings. Most quasi-judicial hearings held by local government bodies involve land use matters, including site specific rezones, preliminary plats, variances, and conditional uses. (MRSC Public Hearings When and How to Hold Them by Bob Meinig, MRSC Legal Consultant August 1998) 2. Specific Statutory Provisions a. Candidates for the City Council may express their opinions about pending or proposed quasi-judicial actions while campaigning, per RCW 42.36.040, except that sitting Councilmembers shall not express their opinions on any such matter which is or may come before the Council. b. Ex parte communications should be avoided whenever possible. During the pendency of any quasi-judicial proceeding, no Councilmember may engage in ex parte communications with proponents or opponents about a proposal involved in the pending proceeding unless the Councilmember: (1) places on the record the substance of such verbal or written communications; and (2) provides that a public announcement of the content of the communication and of the parties' rights to rebut the substance of the communication shall be made at each hearing where action is taken or considered on the subject. This does not prohibit correspondence between a citizen and his or her elected official if the correspondence is made a part of the record, when it pertains to the subject matter of a quasi-judicial proceeding. (RCW 42.36.060) c. Public Disclosure File. The City Clerk shall maintain a public disclosure file, which shall be available for inspection by the public. As to elected officials, the file shall contain copies of all disclosure forms filed with the Washington State Public Disclosure Commission. d. Procedure On Application. Any person making application for any action leading to a quasi-judicial hearing before the Planning Commission and/or City Council shall be provided with a document containing the following information: (1) the names and address of all members of the City Council, and the Planning Commission, (2) a statement that public disclosure information is available for public inspection regarding all such Councilmembers, and (3) a statement that if the applicant intends to raise any appearance of fairness issue, the applicant should do so at least two weeks prior to any public hearing, if the grounds for such issue are then known and in all cases, no later than before the opening of the public hearing. The applicant shall sign a receipt for such document. 3. Actions/Procedures for a Quasi -Judicial Public Hearing See the following excerpt from the Spokane Valley Municipal Code Appendix C for City Council Appeal Hearing Procedures: Spokane Valley Municipal Code Appendix C CITY COUNCIL APPEAL HEARING PROCEDURES A. The Council shall not consider any new facts or evidence outside the verbatim transcript and certified record submitted by the Hearing Examiner, except for: 1. Grounds for disqualification of the Hearing Examiner, when such grounds were unknown by the appellant at the time the record was created; or 2. Matters that were improperly excluded from the record after being offered by a party to the hearing before the Hearing Examiner; or 3. Matters that were outside the jurisdiction of the Hearing Examiner The Council shall allow the record to be supplemented if the offering party demonstrates grounds for supplementation as set forth in subsections (A)(1), (2) or (3) of this appendix. Page 50 of 63 a. Any party requesting that the record be supplemented shall submit such request, along with the specific evidence to be offered to the Council, within 14 calendar days of the date the appeal hearing was scheduled. b. The Council may require or permit the correction of ministerial errors or inadvertent omissions in the preparation of the record. c. The Council will allow the submittal of memoranda by the appellant, or a party of record in opposition to the appeal, subject to the following requirements: i. The appellant may file a memorandum in support of the appeal. The memorandum must be filed no later than 12:00 noon on the third Friday preceding the date set by the Council for consideration of the appeal. ii. Any party of record in opposition to the appeal may submit a reply memorandum in opposition to the appeal. Any reply memorandum must be filed no later than 12:00 noon on the second Friday preceding the date set for consideration of the appeal. iii. All memoranda shall be limited to stating why the record or applicable laws or regulations do or do not support the decision, and shall not contain any new facts or evidence, or discuss matters outside the record, except as permitted above. iv. The offering party shall promptly submit a copy of the memorandum or request to supplement the record to the City Attorney, and to opposing parties as practicable. B. The Council will allow oral argument by the appellant, or a party of record in opposition to the appeal, subject to the following requirements: 1. It is expected that all parties can reasonably be aligned as either in support of the appeal or opposed to the appeal. Accordingly, all parties who desire to make oral argument shall communicate with other parties aligned on the same side of the appeal and attempt to reach agreement in selecting a representative, or otherwise arrange for the allocation of time allowed under these rules to those in support of or those opposed to the appeal. 2. Oral argument shall be presented first by the appellant, followed by those parties of record in opposition to the appeal, and then rebuttal and surrebuttal. 3. Oral argument shall be limited to stating why the record or applicable laws or regulations do not support the decision, and shall not contain any new facts or evidence unless allowed by subsection A of this appendix. 4. Oral argument shall be limited to 20 minutes total for the appellant, and 20 minutes total for those parties in opposition to the appeal, regardless of how many parties make up each side. 5. The respective times allowed for oral argument above include the combined time used by a side for opening argument, rebuttal and surrebuttal. The time taken to respond to questions from the Council is not included in the time allowed for argument. C. The Council may affirm or reverse the Hearing Examiner's decision, or remand it for further proceedings. The Hearing Examiner's decision will be presumed to be correct and supported by the record and law. A tie vote on any motion shall have the effect of affirming the Hearing Examiner's decision. D. The Council may reverse the Hearing Examiner's decision, or remand it for further proceedings, if the appellant has carried the burden of establishing that one or more of the following standards are met: 1. The Hearing Examiner engaged in unlawful procedure or failed to follow a prescribed process, unless the error was harmless; 2. The decision is an erroneous interpretation of the law, after allowing for such deference as is due to construction of law by a local jurisdiction with expertise; 3. The decision is not supported by evidence that is substantial when viewed in light of the entire record; 4. The decision is a clearly erroneous application of the law to the facts; 5. The decision is outside the authority of the Hearing Examiner E. The Council may also remand the decision to the Hearing Examiner if the appellant offers newly discovered evidence that would reasonably have affected the decision had it been admitted in the proceedings before the Hearing Examiner. "Newly discovered evidence" is evidence that with reasonable Page 51 of 63 diligence could not have been discovered and produced at the time the proceedings before the Hearing Examiner were conducted. F. The Council shall adopt written findings and conclusion in support of its decision. If the Council concludes that a fording of fact by the Hearing Examiner, upon which the decision is based, is not supported by substantial evidence, the Council may modify the finding or substitute its own finding, citing substantial evidence in the record that supports the modified or substitute finding. In the event of a tie vote on the proposed findings of fact, that vote shall be considered a final action, the findings shall reflect the same, and the decision of the Hearing Examiner shall be affirmed. G. The Council's decision shall include a notice stating that the decision can be appealed within 21 calendar days from the date the decision was issued, by filing a land use petition with the Superior Court as provided in Chapter 36.70C RCW and meeting the other provisions of such chapter, and that the decision shall act as official notice under RCW 43.21C.075. H. The notice included in the Council's decision shall also state that affected property owners may request the Spokane County Assessor for a change in valuation for property tax purposes notwithstanding any program of revaluation, pursuant to RCW 36.70B.130. I. The City Clerk shall, within five business days from the date of the Council's decision on the appeal, mail a copy of the Council's decision to the appellant, the applicant (if different than the appellant), any other party who testified or submitted a memorandum at the closed record appeal hearing before the Council, any person who requested notice of the decision, and any person who submitted substantive comments on the application. The City Clerk shall also provide notice of the decision to the County Assessor. J. Where the Hearing Examiner's decision recommends approval of the proposal and no appeal has been filed within the time period set forth above, the City Manager or designee shall modify the official zoning map of the City according to the Hearing Examiner's decision. The modification of the zoning map completes the Hearing Examiner's decision and shall be considered the final legislative action of the City Council. Such final action, for zoning purposes, is considered an official control of the City by exercise of its zoning and planning authority pursuant to Washington law. (Ord. 08-022, 2008). Page 52 of 63 APPENDIX B: RESOLUTION 07-019 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 07-019 AMENDED GENERAL POLICY RESOLUTION OF CORE BELIEFS A RESOLUTION OF THE CITY OF SPOKANE VALLEY AMENDING RESOLUTION 03-027, ESTABLISHING A GENERAL POLICY RESOLUTION EMANATING FROM THE CORE BELIEFS OF THE CITY COUNCIL AND COMMUNITY AND SETTING FORTH DUTIES OF BOTH ELECTED AND APPOINTED OFFICIALS OF THE CITY TO HELP GUIDE LEGISLATIVE AND EXECUTIVE DECISIONS TOWARD EFFECTIVE, RESPONSIVE, AND OPEN GOVERNMENT WHEREAS, the City Council of the City of Spokane Valley, as the elective legislative body, is charged with promulgating Ordinances and Resolutions which become the law of the city; and WHEREAS, such Ordinances and Resolutions must provide enforceable provisions subordinate to, and in harmony with, all other applicable federal and state statutes and regulations; and WHEREAS, the City Council desires to provide a clear set of general policy guidelines for the conduct of city government; Section 1. Modifying Resolution 03-027 as set forth below by adding new section 7. The remainder of the resolution 03-027 is unchanged: NOW, THEREFORE, the City Council of the City of Spokane Valley does hereby affirm and resolve that the following core beliefs shall serve as guidelines for the conduct of affairs by all branches of Spokane Valley City Government. Section 1. Section 2. We believe that Spokane Valley should be a visionary city encouraging its citizens and their government to look to the future beyond the present generation and to bring such ideas to public discussion and to enhance a sense of community identity. We believe that elected body decision-making is the only lawful and effective way to conduct the public's legislative business and that careful observance of a clear set of Governance Coordination rules of procedure can best enhance public participation and decision making Section 3. We believe in the City Council as policy leaders of the City. One or more City Councilmembers are encouraged to take the lead, where practical, in sponsoring Ordinances or Resolutions excepting quasi-judicial or other public hearings and the statutory duties of the City Manager as set forth in RCW 35A.13.020. Section 4. Section 5. We believe in hearing the public view. We affirm that members of the public should be encouraged to speak and be heard through reasonable rules of procedure when the public business is being considered, thus giving elected officials the broadest perspectives from which to make decisions. We believe that the City of Spokane Valley's governance should be known as "user friendly," and that governance practices and general operations should consider how citizens will be served in the most responsive, effective and courteous manner. Page 53 of 63 Section 6. Section 7. Section 8. We believe that the economic and commercial job base of the community should be preserved and encouraged to grow as an alternative to increasing property taxes. We believe it imperative to have an expanded and diverse economic base, We believe that Councilmembers set the tone for civic discussion and should set an example by: (a) Setting high standards of decorum and civility. (b) Encouraging open and productive conversation amongst themselves and with the community about legislative matters. (c) Demonstrating respect for divergent points of view expressed by citizens, fellow Councilmembers and the staff. (d) Honoring each other and the public by debating issues within City Hall and the Community without casting aspersions on members of Council, the staff, or the public. (e) Accepting the principle of majority rule and working to advance the success of "corporate" decisions. We solicit the City Manager's support in conducting the affairs of the city with due regard for: (a) Promoting mutual respect between the Citizens, City staff and the City Council by creating the organizational teamwork necessary for effective, responsive and open government. (b) Providing the City Council and public reasonable advance notice when issues are to be brought forward for discussion. (c) Establishing and maintaining a formal city-wide customer service program with emphasis on timely response, a user-friendly atmosphere, and an attitude of facilitation and accommodation within the bounds of responsibility, integrity, and financial capability of the city, including organizational and job description documents while pursuing "best practices" in customer service. (d) Seeking creative ways to contain or impede the rising cost of governmental services, including examination of private sector alternatives in lieu of governmentally provided services. (e) Providing a data base of future projects and dreams for the new City of Spokane Valley so that good ideas from its citizens and leaders are not lost and the status of projects can be readily determined. Approved by the City Council this 11th day of December, 2007. ATTEST: /s/ DIANA WILHITE /s/ CHRISTINE BAINBRIDGE Diana Wilhite, Mayor Christine Bainbridge, City Clerk Approved as to form: /S/ MICHAEL F. CONNELLY Office of the City Attorney Page 54 of 63 APPENDIX C: STATEMENT OF ETHICS SPOKANE VALLEY CITY COUNCILMEMBERS' STATEMENT OF ETHICS By adoption of the Resolution which adopts this Governance Manual, the Spokane Valley City Councilmembers hereby agree to be bound by the following rules of ethics: DECLARATION OF PURPOSE: • Provide guidelines and set high ethical standards for Councilmembers to perform their duties in an open, honest, and unbiased manner. • Establish procedures for prevention and/or elimination of possible conflicts of interest. • Improve and strengthen the public's perception and trust in their local government. DEFINITIONS: Compensation: Anything of economic value regardless of amount, however designated, which is paid, loaned, advanced, granted, transferred, or gifted, or to be paid, loaned, advanced, granted, transferred or gifted for or in consideration of personal services to any person or that person's immediate family as that term is defined in RCW 42.17A.005(24). Contract: Includes any contract or agreement, sale, lease, purchase, or any combination of the foregoing. A contracting party is any person, partnership, association, cooperative, corporation, whether for profit or otherwise, or other business entity which is a party to a contract with a municipality. PROHIBITED CONDUCT: (a) Acceptance of Gifts: No Councilmember, based solely on their position with the City of Spokane Valley, shall receive, accept, take, seek, or solicit, directly or indirectly, anything of economic value regardless of the amount, as a gift, gratuity, or favor from any person or entity outside the City organization. Campaign donations made and reported in conformance with Washington law are exempt from this provision. (b) Interest in Contracts, Exceptions: No Councilmember shall be beneficially interested, directly or indirectly, in any contract where the City of Spokane Valley is named as a party to the contract; and no Councilmember shall accept, directly or indirectly, any compensation, gratuity or reward in connection with such contract. This prohibition shall not apply to the exceptions specified in RCW 42.23.030 which are incorporated herein as if fully set forth. (c) Incompatible Service; Confidential Information: No Councilmember shall engage in or accept private employment or render services for any person, or engage in any business or professional activity when such is incompatible with the faithful discharge of his/her official duties as a Councilmember. No Councilmember shall disclose confidential information acquired by reason of such official position, nor shall such information be used for the Councilmember's personal gain or benefit. PERSONAL OR PRIVATE INTERESTS, PUBLIC DISCLOSURE: Any Councilmember who has a financial or other private or personal interest in any ordinance, resolution, contract, proceeding, or other action pending before the City Council or any of its committees, shall promptly disclose such interest at the first public meeting when such matter is being considered by the City Council, and a summary of the nature of such interest shall be incorporated into the official minutes of the City Council proceedings. Any Councilmember who feels disqualified by reason of such interest in any matter before the City Council, shall make a public statement and disclose the reasons why that Councilmember feels disqualified, and state that they are recusing themselves from the issue, and with permission of the Presiding Officer, will leave the Council Chambers until such time as the issue at hand has been disposed of in the regular course of business. Page 55 of 63 Appendix D: Frequently Used Acronyms AACE - American Association of Code Enforcement ADA - Americans with Disabilities Act ADT - Average Daily Traffic ATF - Bureau of Alcohol, Tobacco & Firearms AWC - Association of Washington Cities BOCC - Board of County Commissioners CAFR - Comprehensive Annual Financial Report CDBG - Community Development Block Grant CIP - Capital Improvement Plan CM - City Manager CM/AQ - Congestion Mitigation & Air Quality Program CTED - Community, Trade, & Economic Development (now Department of Commerce) CTR - Commute Trip Reduction (legislation) CUP - Conditional Use Permit DEIS - Draft Environmental Impact Statement DEM - Department of Emergency Management DNR - Department of Natural Resources DNS - Declaration of Non -Significance DOE - Department of Ecology; Department of Energy DOT - Department of Transportation E911 - Enhanced 911 EA - Environment Assessment EDC - Economic Development Council EEO/AA - Equal Employment Opportunity/Affirmative Action EEOC - Equal Employment Opportunity Commission EIS - Environmental Impact Statement EOE - Equal Opportunity Employer EPA - Environmental Protection Agency ERU - Equivalent Residential Unit (for measuring water -sewer capacity and demand) ESU - Equivalent Service Unit (for measuring stormwater utility fees) F & WS - Federal Fish & Wildlife Service FAA - Federal Aviation Administration FCC - Federal Communications Commission FEIS - Final Environmental Impact Statement Page 56 of 63 FEMA - Federal Emergency Management Agency FICA - Federal Insurance Contribution Act FIRM - Flood Insurance Rate Maps FLSA - Fair Labor Standards Act FMLA - Family Medical Leave Act FY - Fiscal Year GAAP - Generally Accepted Accounting Principles GASB - Governmental Accounting Standards Board GIS - Geographic Information System GMA - Growth Management Act GPM - Gallons Per Minute HOV - High -Occupancy Vehicle HR - Human Resources HUD - Housing & Urban Development (Department of) ICMA - International City/County Management Association L & I - Labor & Industries (Department of) LID - Local Improvement District MGD - Million Gallons per Day MOA - Memorandum of Agreement MOU - Memorandum of Understanding MPO - Metropolitan Planning Organization MRSC - Municipal Research Services Center NEPA - National Environment Policy Act NIMBY - Not In My Backyard NPDES - National Pollutant Discharge Elimination System PE - Preliminary Engineering; Professional Engineer PERC - Public Employment Relations Commission PMS - Pavement Management System PPE - Personal Protective Equipment PPM - Parts Per Million; Policy & Procedure Manual PUD - Public Utility District PW - Public Works QA - Quality Assurance RCW - Revised Code of Washington REET - Real Estate Excise Tax RONR Robert's Rules of Order Newly Revised Page 57 of 63 ROW - Right of Way SAO - State Auditor's Office SBA - Small Business Administration SEPA - State Environmental Policy Act SMA - Shorelines Management Act SWAC - Solid Waste Advisory Committee TIB - Transportation Improvement Board TIP - Transportation Improvement Program TMDL - Total Maximum Daily Load UBC - Uniform Building Code UFC - Uniform Fire Code UGA - Urban Growth Area WAC - Washington Administrative Code WACO - Washington Association of County Officials WCIA - Washington Cities Insurance Authority WCMA - Washington City/County Management Association WSDOT - Washington State Depainnent of Transportation WSP - Washington State Patrol WUTC - Washington Utilities & Transportation Commission WWTP - Wastewater Treatment Plant Page 58 of 63 Appendix E: Definitions Action: All transactions of a governing body's business, including receipt of public testimony, deliberations, discussions, considerations, reviews, and evaluations, as well as "final" action. [RCW 42.30.010, 42.30.020(3)]. Codified: The process of forming a legal code (i.e., a codex or book of laws) by collecting and including the laws of a jurisdiction or municipality. Consensus: A collective judgment or belief; solidarity of opinion: "The consensus of the group was that they should meet twice a month. General agreement or harmony. [Random House Webster's College Dictionary, April 2001] [Wikipedia: explains it as a group decision making process, or Does anyone object?] It is not unanimity, but more a process for deciding what is best overall. Members of the group reach a decision to which they consent because they know it is the best one overall. It differs from voting which is a procedure for tallying preferences. It does not require each member of the group to justify their feelings. [Taken from: Consensus Is Not Unanimity: Making Decisions Cooperatively, by Randy Schutt.'] Similar to a type of verbal "show of hands" on who feels particularly strong on this?" Sometimes thought of as preliminary approval without taking final "action." A show of hands is not an action that has any legal effect. ["Voting and Taking Action in Closed Sessions" by Frayda Bulestein.] Ex -parte: from a one-sided or partisan point of view; on the application of one party alone. An ex - parte judicial proceeding is conducted for the benefit of only one party. Ex -parte may also describe contact with a person represented by an attorney, outside the presence of the attorney. Immediate Family: includes a spouse or domestic partner, dependent children, and other dependent relatives, if living in the household. For the purposes of the definition of "intermediary" in this section, "immediate family" means an individual's spouse or domestic partner, child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half-sister of the individual and the spouse or the domestic partner of any such person and a child, stepchild, grandchild, parent, stepparent, grandparent, brother, half-brother, sister, or half-sister of the individual's spouse or domestic partner and the spouse or the domestic partner of any such person (RCW 42.17A.005(24)). Motion: An enacted motion is a form of action taken by the Council to direct that a specific action be taken on behalf of the municipality. Once approved and entered into the record, is the equivalent of a resolution in those instances where a resolution is not required by law, and where such motion is not in conflict with existing state or federal statutes, City ordinances or resolutions. Ordinance: An enacted ordinance is a law passed [enacted] by a municipal organization legislatively prescribing specific rules of organization or conduct relating to the corporate affairs of the municipality and those citizens and businesses therein. Council action shall be taken by ordinance when required by law, or where prescribed conduct may be enforced by penalty. Special ordinances such as adopting the budget, vacating a street, amending the Comprehensive Plan and/or Map, and placing a matter on an election ballot, including general obligation bonds, are not codified into the City's municipal code. Resolution: An enacted resolution is an administrative act which is a formal statement of policy concerning matters of special or temporary character. Council action shall be taken by resolution when required by law and in those instances where an expression of policy more formal than a motion is desired. Regular Meeting: Any Council meeting that meets in the Spokane Valley City Council Chambers on Tuesday at 6:00 p.m. shall be deemed a "regular meeting." Social Media: A term used to define the various activities that integrate technology, social interaction and content creation. Through social media, individuals or collaborations of individuals create on-line web content, organize content, edit or comment on content, combine content, and share content. Includes many technologies and forms including syndicated web feeds, weblogs (blogs), wild, photo -sharing, video -sharing, podcasts, and social networking. (From MRSC, and Social Media and Web 2.0 in Government, WebContent.gov) Page 59 of 63 A Absences • 17 ad hoc committees • 47 Advance Agenda • 16, 20 affirmative motion • 21 Agenda Committee • 20 amended agenda • 10, 13, 16 Appearance of Fairness Doctrine • 42, 43, 47 applause • 11, 26 applications • 27, 31, 32 attendance • 39, 47 INDEX 1 B ballot • 11, 30, 33, 35, 36, 59 bias • 23, 24, 43 budget amendment • 23, 25 C candidate • 14, 32 change orders • 47 City Manager • 3, 6, 7, 10, 12, 13, 14, 15, 16, 17, 19, 20, 21, 23, 25, 26, 28, 30, 34, 38, 39, 42, 43, 47, 52, 53, 54, 56 coin flip • 34 complaint • 38 Confidential material • 19 Core Beliefs • 3, 4 D dais 12, 19, 28, 32 deadline • 31 Demonstration • 11 donation • 39 E election • 30, 31, 33, 35, 59, 62 electronic message • 11, 19 e-mail • 11, 19, 36 emergency • 2, 10, 15, 16, 19, 23, 25, 28, 56, 62 ethical • 39, 55 executive session • 14, 15, 28, 31, 32, 47 F Filling a Council Vacancy • 31 Finance Department • 35 fiscal restraint • 25 flip of a coin• 30 impractical • 15, 16, 28 informal contacts • 40 Internet • 11, 18, 19 leave of absence • 17, 18 M majority of the whole • 23, 25 Majority Plus One • 23, 25 majority vote • 6, 9, 12, 17, 21, 22, 25, 27, 30, 45, 48 maker of the motion • 20, 21, 22 misleading • 13 N nomination • 30, 31, 32, 33 notice • 9, 15, 17, 18, 27, 35, 47, 49, 52, 54, 62 0 Open Public Meetings Act • 9, 13, 14, 19, 38, 62 out of order • 11, 19, 22, 26 P parliamentarian • 17 podium 11, 12, 19, 20, 26, 27 Pre -Agenda • 2, 16 presentations • 10, 11, 13, 27 prevailing side • 27 public comments • 11, 12, 20, 26, 27, 36 Q qualifications • 14, 31 quasi-judicial • 11, 18, 27, 47, 50, 53 quorum 5, 6, 7, 17, 18, 23, 62 R rearrange • 10, 13 recommended appointment • 45 reconsideration • 27 recuse • 23, 24, 43 reimbursement • 35, 46 Page 60 of 63 Removal • 46 travel • 35, 46 Request for Council Action • 28 S seats • 17 social media • 38, 59 speak twice• 21 special meeting • 14, 15, 16, 25, 31, 32 surprises • 13, 21, 28 T table 2, 7, 22, 27 tax • 25, 26, 33, 46, 52 telephone • 18, 38 three Councilmembers • 10 three minutes • 11, 20, 26 Three Touch • 10, 25, 28 tie 23, 30, 34, 51, 52 U unexcused absence • 17, 46 Unexpected Motions • 13 unusual circumstances • 25, 28 V vacancy • 30, 31, 32, 33, 34, 47 video • 18, 19, 39, 59 vote to extend the meeting • 12 w waived • 10, 23, 25 written comments • 11, 27 Page 61 of 63 Endnotes: 1 RCW 42.30.110 — Open Public Meeting Act, Executive Sessions 2 RCW 42.30.140- Open Public Meeting Act, RCW 35A.13.035- Optional Municipal Code (35A) — Council-manager plan of government 4 RCW 42.52 — Ethics in Public Service 5 RCW 42.56 — Public Records Act 6 RCW 35A.12.160 Optional Municipal Code (35A) — Council manager plan of government; public notice of hearings and meeting agendas RCW 35A.13.170 — Optional Municipal Code (35A) — Council manager plan of government; council meetings — quorum, rules - voting 8 RCW 35A.12.110 — Council meetings shall meet regularly, at least once a month. 9 RCW 42.30.080 — Open Public Meetings Act, Special Meetings, procedures for calling Special Meetings 1° RCW 35A.12.110 — Council meetings shall meet regularly, at least once a month. 11 RCW 42.30.080 - Open Public Meetings Act, Special Meetings, procedures for calling Special Meetings 12 RCW 42.30.080(3) — Open Public Meetings Act, Special Meetings, procedures for calling Special Meetings 13 RCW 42.30.090 — Open Public Meetings Act, Adjournments 14 RCW 35A.13.170 - Optional Municipal Code (35A) — Council mgr plan of gov't; meetings: quorum, rules, voting 15 35A.12.120 — Council meetings, shall meet regularly, at least once a month 16 RCW 35A.12.060 — A council position shall become vacant if the councilmember fails to attend three consecutive regular meetings of the council without being excused by the council. 1' RCW 42.17A.555 — Use of public office or agency facilities in campaigns — Prohibition — Exceptions 18 RCW 35A.12.120 — Council — Quorum — Rules — Voting 19 RCW 35A.33.090 — Emergency Expenditures — Other emergencies — Hearing. 20 RCW 35A.13.190 — Ordinances, emergencies, may be effective upon adoption if passed by a majority plus one of the whole membership of the council and have the ordinance designated as a public emergency; but such ordinance may not levy taxes, grant, renew or extend a franchise, or authorize the borrowing of money. 21 RCW 35A.13 - Council-manager plan of government. 22 RCW 35A.33.090 — Emergency Expenditures — Other emergencies — Hearing. 23 RCW 35A.13.190 — Ordinances, emergencies, may be effective upon adoption if passed by a majority plus one of the whole membership of the council and have the ordinance designated as a public emergency; but such ordinance may not levy taxes, grant, renew or extend a franchise, or authorize the borrowing of money. 24 RCW 35A.13.030 - Mayor — election — chair to be mayor — duties: Biennially at the first meeting of the new council members shall choose a chair from among their number; chair's title shall be mayor and preside at meetings. 25 RCW 35A.13 — Council-manager plan of government. Page 62 of 63 26 RCW 35A.13.020 — Mayor — election, chair to be mayor, duties 27 RCW 35A.13.020 — ibid. 28 RCW 42.12.070 — Filling nonpartisan vacancies Page 63 of 63 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Motion Consideration: Purchase and Sale Agreement for 707 S. Carnahan Road GOVERNING LEGISLATION: SVMC 3.49.010 PREVIOUS COUNCIL ACTION TAKEN: N/A BACKGROUND: Due to serious vehicle crashes over the last three years, staff was asked to analyze and identify safety improvements to the intersection of 8th Avenue and Carnahan Road. The history of the intersection is important as it describes the current layout of the intersection. The right-of-way and property lines for Carnahan were established in 1905. At that time, Carnahan was a service road and the development that has occurred within the area in the last 113 years was not foreseen. The right-of-way for 8th Avenue was established in 1921. No changes to the properties lines or rights-of-way have occurred since. There is a large rock outcropping in the southwest corner. The original alignment of Carnahan at 8th Avenue avoids this rock outcropping and creates an offset intersection. There is a 14' offset in which Carnahan shifts 14' across the intersection. The intersection of 8t" and Carnahan is the only intersection of minor arterials in the City with this large of an offset. Current design standards allow for a maximum of 6' offset. The 14' offset creates a safety hazard as northbound and southbound vehicles try to align themselves for maneuvering. It also creates an awkward sight distance scenario as drivers are required to look at different angles than at a normal aligned intersection. This 14' offset has also contributed to serious vehicle crashes in the last three years. two very serious crashes occurred in 2014 and 2015. The crash in 2014 occurred by a vehicle colliding with a private fence and trees as the vehicle proceeded to crash into parked cars in a driveway on the northeast corner. The crash resulted in property damage and a serious injury. The crash in 2015 occurred from a medical incident in which the vehicle collided with barricades and rolled several times before coming to a stop over 100' north of the intersection resulting in property damage and a serious injury, again on the northeast corner. Additionally, the future North Spokane Corridor (NSC) tie-in points will likely increase traffic on Carnahan, north of 8t" Avenue. The NSC is still in the Interchange Justification Report (IJR) process, which includes additional traffic analyses. Once the IJR is approved by the Federal Highway Administration (FHWA), Washington State Department of Transportation (WSDOT) will move the design process forward, and further refinements to connections will occur. The intersection should be realigned due to safety, existing capacity, and future capacity reasons. Realigning the intersection will eliminate the 14' offset, and is anticipated to reduce the number of vehicle crashes. The realignment will allow for adding a turn lane to provide the needed capacity. The realignment will also allow for expansion of Carnahan and the intersection at 8th Avenue to accommodate future growth from development and from any increase of traffic due to the NSC. The additional right-of-way needed for the future expansion on Carnahan between 4th Avenue and 8th Avenue will generally occur on the east side of Carnahan, with more right-of-way needs at the intersection of 8th Avenue to accommodate future traffic control devices and drainage improvements. Pursuant to SVMC 3.49.010, the Council must now determine whether it will authorize staff to finalize this transaction. OPTIONS: Authorize the City Manager to finalize and execute the purchase and sale agreement for the purchase of the property located at 707 S. Carnahan Road, or take other appropriate action. RECOMMENDED ACTION OR MOTION: Move to authorize the City Manager to finalize and execute the purchase and sale agreement for the property at 707 S. Carnahan Road BUDGET/FINANCIAL IMPACTS: The purchase of this property will be funded out of Fund 312 — Capital Reserve Fund STAFF CONTACT: Eric P. Guth, PE — Public Works Director ATTACHMENTS: Proposed Purchase and Sale Agreement — 707 S. Carnahan Road PURCHASE AND SALE AGREEMENT THIS AGREEMENT entered into as of this day of October, 2016 between City of Spokane Valley, a municipal corporation of the State of Washington ("Purchaser") and Matthew and Christina Perroux ("Seller"), Seller and Buyer collectively referred to as "Parties." RECITALS A. Seller is the owners of real property located at 707 South Carnahan Road, City of Spokane Valley, County of Spokane, (the Property) which real property is described more particularly in Exhibit A hereto. B. Seller wishes to sell the Property, and Purchaser wishes to purchase the property. NOW, THEREFORE, the Parties covenant and agree as follows: 1. Purchase and Sale. Seller agrees to sell, and Purchaser agrees to purchase: (a) The Property is legally described in Exhibit A attached hereto and incorporated herein by this reference; (b) All mineral, oil, gas, hydrocarbon substances, development rights, air rights, water rights, and water stock owned by Seller relating to the Property; all easements and rights-of-way owned by Seller that are appurtenant to the Property, the improvements, and any appurtenance, or the operation, use or enjoyment of any of the foregoing; and all rights of Seller in and to streets, sidewalks, alleys, driveways, parking areas, and areas adjacent thereto or used in connection therewith and any land lying in the bed of any existing or proposed street adjacent to the Property. The purchase price for the Property is $185,000.00. The purchase price shall be payable, as follows: (c) Purchaser shall pay all cash at closing. (d) The purchase price is based on a total square footage of 39,000 square feet. The Purchaser hereby represents that Purchaser(s) have available sufficient funds to close this sale in accordance with this Agreement. 2. Contingencies. The sale is contingent upon (i) acceptance of this offer by Seller; (ii) Purchaser shall have 30 days to perform the Purchaser's due diligence regarding the property, at the Purchaser's own expense, including but not limited to physical survey of the property, environmental review and/or survey of the property, etc. Purchaser's agreement is conditioned upon Purchaser's due diligence and approval thereof. This contingency shall be conclusively deemed satisfied unless within the inspection period provided for herein the Seller receives a full and complete copy of the report and/or other information generated by the Purchaser's due diligence and a Notice of Termination of this Agreement from Purchaser identifying the conditions discovered during the Purchaser's due diligence to which Purchaser objects. Seller waives the Seller Contingencies. 3. Title. Title to the Property is to be in the condition provided for in paragraph 5 hereof. 4. Preliminary Commitment. Purchaser shall obtain, at Purchasers cost, a preliminary report/commitment from Spokane County Title for an ALTA owner's coverage policy of title insurance with respect to the Real Property. Purchaser shall advise Seller of any title objections within 10 days after the later of (a) its receipt of the report/commitment or (b) its receipt of any supplemental thereto reflecting the Escrow Agent's receipt and review of the survey necessary to remove all survey exceptions or conditions in the title commitment. Seller shall advise Purchaser in writing within 10 days thereafter which title objections it can and will satisfy, it being agreed that Seller and Purchaser will cooperate to remove all title exceptions reflecting easements of record. Seller shall be responsible for the removal of liens or monetary encumbrances. If within such 10 day period Purchaser has not received evidence satisfactory to it that such unsatisfactory items can and will be removed at or prior to closing at Seller's sole cost and expense, then Purchaser may elect to (a) terminate this Agreement and receive a full refund of the Deposit or (b) waive such defects or (c) to continue this Agreement in effect pending their removal. Purchaser shall notify Seller of the option it selects and with respect to (c), the duration of the continuance shall not exceed 60 days. Purchaser's failure to make an affirmative election shall be deemed an election to terminate this Agreement. Removal of unsatisfactory items or their waiver shall be a condition of closing. 5. Pro -rations. Real Property taxes assessed in 2016 other than Seller's overhead as to the Property shall be prorated as of closing. Any prorations which are performed on an estimated basis at closing shall be re -prorated and adjusted based on final information received as soon as is practicable after closing. All expenses, fees and sums owing or incurred for the Property for periods prior to closing shall be paid by Seller, when and as due. 6. Possession. Purchaser shall be entitled to sole possession of the Property on closing. 7. Closing. The sale shall be closed in escrow with the Escrow Agent on or before January 13th, 2017. (a) At closing, Seller shall deposit in escrow a duly executed statutory warranty deed covering the Property and all other documents and monies required of it to close this transaction in accordance with the terms hereof. All such documents shall be in form satisfactory to Purchaser's counsel. (b) At closing, Purchaser shall deposit in escrow the monies required of it to close the transaction in accordance with the terms hereof. 8. Closing Costs. Each party shall bear its own costs associated with the transaction. 9. Actions During Term. During the term hereof, Seller shall not enter into any lease or other agreement affecting the Property or its operation or, modify, extend or otherwise change the terms of any agreement affecting the Property. 10. Binding Effect. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective heirs, successors and assigns; provided, however, Purchaser shall not assign its rights hereunder to any person or entity, other than a company or companies controlled by, or under common control with, Purchaser without Seller's prior written consent which shall not be unreasonably withheld. 11. Warranties: Indemnity; Disclaimer. (a) As an inducement to Purchaser to enter this transaction, Seller makes, represents, and warrants that they have clear and marketable title thereto as described in the Preliminary Commitment as updated and attached as Exhibit "4". (b) If, prior to closing, Seller becomes aware of any fact or circumstance which would change a representation or warranty, then Seller shall immediately give notice of such changed fact or circumstance to Purchaser. Seller shall issue a certificate at the closing stating that all of Seller's representations and warranties are true and correct as of said date, except as to facts, if any, concerning which Purchaser was previously notified in writing. If Seller gives notice of a material change prior to closing, Purchaser shall have the option to terminate the Agreement without further liability. 12. Costs and Expenses. Except as otherwise expressly provided in Section 9, each party hereto will bear its own costs and expenses in connection with the negotiation, preparation and execution of this Agreement and other documentation related hereto and in the performance of its duties hereunder. 13. Notices. All notices provided for herein may be delivered in person, sent by regular overnight courier, telecopied or mailed by U.S. registered or certified mail, return receipt requested, and, if mailed, shall be considered delivered 3 business days after deposit in such mail. The addresses to be used in connection with such correspondence and notices are the following, or such other address as a party shall from time to time direct: Seller: Purchaser: 14. Miscellaneous. Matthew Perroux 2900 West Pleasanton Rd Boise, ID. 83702 Christina Perroux 707 South Carnahan Rd. Spokane Valley, WA. 99212 City of Spokane Valley 11707 East Sprague Avenue, Suite 106 Spokane Valley, WA 99206 (a) Further Documentation. The Parties agree to execute, acknowledge, and deliver upon request by the other party any document which the requesting party reasonably deems necessary or desirable to evidence or effectuate the rights herein conferred or to implement or consummate the purposes and intents hereof, so long as such imposes no different or greater burden upon such party than is otherwise imposed hereunder. (b) Headings. The headings in this Agreement are for convenience only and do not in any way limit or affect the terms and provisions hereof. (c) Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday. The final day of any such period shall be deemed to end at 4 p.m. Pacific Daylight Time. (d) Time of Essence. Time is of the essence of this Agreement. (e) Gender. Wherever appropriate in this Agreement, the singular shall be deemed to refer to the plural and the plural to the singular, and pronouns of certain genders shall be deemed to include either or both of the other genders. (f) Exhibits. The Exhibits referred to herein and attached to this Agreement are incorporated herein as if set forth in full. (g) Unenforceability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the remainder of such provision or any other provisions hereof. (h) Amendment Modifications. This Agreement may not be altered, amended, changed, waived, terminated or modified in any respect or particular unless the same shall be in writing and signed by or on behalf of the party to be charged therewith. 15. Waiver. A party may, at any time or times, at its election, waive any of the conditions to its obligations hereunder, but any such waiver shall be effective only if contained in a writing signed by such party. No waiver shall reduce the rights and remedies of such party by reason of any breach of any other party. No waiver by any party of any breach hereunder shall be deemed a waiver of any other or subsequent breach. 16. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. 17. Facsimile Signatures. Each party (i) has agreed to permit the use, from time -to - time and where appropriate, of signatures by facsimile in order to expedite the transaction contemplated by this Agreement, (ii) intends to be bound by its respective facsimile signature, (iii) is aware that the other will rely on the facsimile signature and (iv) acknowledges such reliance and waives any defenses to the enforcement of the documents effecting the transaction contemplated by this Agreement based on the fact that a signature was sent by facsimile. 18. Exclusive Dealing. During the term of this Agreement, Seller shall deal exclusively with Purchaser relative to the purchase of the Property and will not accept other offers for the purchase of the Property. 19. Acknowledgement. The Parties understand that this is a legally binding document for the sale and purchase of real property. The Parties agree that this document has been prepared in cooperation between both Parties. Both Parties understand that they have a right to have this document reviewed by their respective legal counsel of their own choice and at their own expense. The Parties acknowledge that they have obtained such legal advice as they deem necessary and prudent prior to signing this document. 20. Entire Agreement. This Agreement and the exhibits hereto constitute the entire Agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements, oral or written, express or implied, and all negotiations or discussions of the Parties, whether oral or written, and there are no warranties, representations or agreements among the Parties in connection with the subject matter hereof except as set forth herein. JN WITNESS WHEREOF, the Parties have executed this Agreement as of this day of , 2016. PURCHASER: City of Spokane Valley By: Mark Calhoun, Acting City Manager SELLER: /. a� ew gr I AL atthe Perroux By: By: Christina Perroux. a6 tV ,/ Christina a Perroux M. Pe,row PHONE: *I- 7/ *5°7 Email: C b r; S 5 pe-' o�� p e c m,ti , toeY\ ahn►u° c,) i�-►2— a3`-5 Commitment No. : SP7694 EXHIBIT "A" LOT 7, BLOCK 6, CAROLINE, AS PER PLAT RECORDED IN VOLUME "S" OF PLATS, PAGE 12, RECORDS OF SPOKANE COUNTY; SITUATE IN THE CITY OF SPOKANE VALLEY, COUNTY OF SPOKANE, STATE OF WASHINGTON. Page 6 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ® admin. report Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Administrative report — Legal options for de -annexing from a library district. GOVERNING LEGISLATION: RCW 27.12.380; and RCW27.12.355. PREVIOUS COUNCIL ACTION TAKEN: Annexation to Spokane County Library District (SCLD) in 2005. BACKGROUND: Following incorporation in 2003, the City contracted with SCLD to provide library services while the City considered various long-term options. In 2005, the City Council decided to submit the question of whether to annex to SCLD to the voters of the City, which was approved by a large majority. In early 2012, the City received a request from SCLD for the City to purchase 8.4 acres of vacant land on Sprague Avenue in partnership with SCLD. SCLD would then purchase part of the vacant land to construct a new centrally -located Spokane Valley library, with the City using the rest of the property for a significantly expanded park area. Pursuant to their interlocal agreement, SCLD would have until October 2017 to pass a bond measure. SCLD subsequently formed a capital facilities area through vote, and submitted two separate proposals to voters for approval of bonds to construct the new library, along with construction of a second new library facility near Shelly Lake, and improvements to the Argonne branch. Both efforts failed, with the first receiving 55% in 2014, and the second 57% in 2015. In 2016, the SCLD Board of Trustees stated SCLD had attempted twice (unsuccessfully) to obtain the bonds, then passed a motion to request that the City amend the interlocal agreement so that SCLD could receive the funds paid to the City for the 2.82 acres immediately and transfer the property back to the City, rather than wait until October, 2017. In light of the recent request by SCLD to amend the interlocal agreement to transfer the property back to the City early, and in light of the goal of the City Council to have a library facility at the Sprague Avenue property across from the new City Hall, staff has been asked to present options on how the City may legally de -annex from SCLD. Those options are contained in a PowerPoint presentation, attached. OPTIONS: Discussion only. RECOMMENDED ACTION OR MOTION: Discussion only. BUDGET/FINANCIAL IMPACTS: Unknown. STAFF CONTACT: Cary Driskell, City Attorney ATTACHMENTS: PowerPoint presentation on legal options. De -annexation From a Library District Cary Driskell City Attorney, City of Spokane Valley Kristopher Morton Legal Intern, City of Spokane Valley November 1, 2016 City of Spokane Valley - Office of the City Attorney Overview Background. Procedures available for a City to withdraw from a library district. Tax implications. City responsibility for library district outstanding indebtedness. If a City withdraws, what happens to district assets? City of Spokane Valley - Office of the City Attorney =Mlllinv___ Background City options for providing library services: 1. Decide to not provide library services; 2. Establish and maintain City library either in-house or by contract with private entity; 3. Join with other governmental units to form a regional library; or 4. Contract for services from an existing library. City of Spokane Valley - Office of the City Attorney Background If the City decides not to provide library services: City residents would still be permitted to enter SCLD facilities, browse materials, attend programs, access electronic resources, and otherwise use library services while in library facilities. However, residents would need to pay a "Non -Resident Membership" fee in order to check out materials. Currently, "Non -Resident Membership" requires an annual fee of sioo per household. City of Spokane Valley - Office of the City Attorney Legal options available to de-annex from a library district City of Spokane Valley - Office of the City Attorney 5 Option one - RCW 27.12.380 RCW 27.12.380: "[T]he legislative body of ... a city . . . which has annexed to ... a library district, may, by resolution, present to the voters of such city ... a proposition to withdraw from said library district at any general election held at least three years following the annexation to the library district:" City of Spokane Valley - Office of the City Attorney Option one - process How: Adopt a resolution to present a proposition to voters of the City to withdraw the City from the SCLD. Successful vote by City residents to withdraw from the SCLD. When: The City annexed to SCLD in 2006, so could present a proposition to de -annex at any time. City of Spokane Valley - Office of the City Attorney Option two - RCW 27.12.355 RCW 27.12.355: "A ... library district ... may withdraw areas from its boundaries .... The withdrawal of an area shall be authorized upon: (a) Adoption of a resolution by the board of trustees requesting the withdrawal and finding that ... inclusion of this area within the library district will result in a reduction of the district's tax levy rate ... and (b) Adoption of a resolution by the city ... council approving the withdrawal ...." City of Spokane Valley - Office of the City Attorney Option two - process In order to use this provision, it would require that the SCLD Board of Trustees adopt a resolution requesting the withdrawal of the City; AND The Board of Trustees must find that the City's inclusion in the District results in a reduction of the District's tax levy rate; AND The City Council adopts a resolution approving the withdrawal. City of Spokane Valley - Office of the City Attorney Tax Implications of de-annexation Any city annexed to a library district and/or a fire district may levy a maximum of $3.6o per thousand dollars of assessed value. Currently, the SCLD imposes a levy of $0.50 per thousand dollars of assessed value; and the fire districts impose a levy of $1.5o per thousand dollars of assessed value. Thus, the City's current maximum levy rate is $i.6o. ($3.60 - $O.50 - $1.50= $i.6o) City of Spokane Valley - Office of the City Attorney Tax Implications continued If the City withdraws from the SCLD, the City would likely no longer be subject to the District levy, effective on the first day of the year following withdrawal. Option one - State law is silent as to when the withdrawal becomes effective and how taxes will be calculated. Option two - Upon withdrawal, the taxes due for the City and District "shall be calculated as if the withdrawn area had not been part of the library district ... , and as if the library district ...had not been part of the city ...:' City of Spokane Valley - Office of the City Attorney Tax Implications continued... If the City withdraws from the SCLD, the local maximum levy rate would increase to $a.io per thousand dollars of assessed value ($3.60 - $1.5o = $z.io). Note, the maximum levy rate for the City will remain at $3.6o because the City is annexed to fire districts. The additional revenue would go into the general fund to pay for general governmental services, including library. City of Spokane Valley - Office of the City Attorney City Responsibility for District Indebtedness • "The withdrawal of an area from the boundaries of a library district shall not exempt any property therein from taxation for the purpose of paying the costs of redeeming any indebtedness of the library district existing at the time of the withdrawal." City of Spokane Valley - Office of the City Attorney Responsibility for Indebtedness Continued... If the City withdraws from the SCLD, the City would likely be responsible for servicing "any" library district indebtedness present at the time of the withdrawal. The City would likely be responsible for District outstanding debt regardless of what procedure the City utilizes to withdraw. Note -Option one is silent with respect to a City's responsibility for the District's indebtedness. City of Spokane Valley - Office of the City Attorney hat Happens to S LD Assets? State law is silent with respect to what happens to a library district's assets upon withdrawal of an annexed City. However, it is reasonable to assume, since the SOLD already owns the library materials and the Spokane Valley Library building, that the District would retain ownership of the library materials and building if the City withdrew from the SOLD. City of Spokane Valley - Office of the City Attorney Conclusion - Option one How: Resolution presenting to the voters of the City a proposition withdrawing the City from the District at any general election; AND Successful vote to withdraw. Tax Implications: A likely increase of the local maximum levy to $2.10 on the first day of the year following a successful vote to withdraw. Indebtedness: The City will likely be responsible for any SCLD outstanding indebtedness present at the time of the City's withdrawal. Assets: It is likely that the SCLD will retain possession of the library materials and building if the City withdraws. City of Spokane Valley - Office of the City Attorney Conclusion —Option two How: SCLD Board of Trustees adopts resolution requesting withdrawal of the City; AND finding that the City's inclusion in the District will result in a reduction of the District's tax levy rate; AND City Council would then need to adopt a resolution approving the withdrawal. Tax Implications: It is likely that the local maximum levy would increase to $2.10 on the first day of thegear following withdrawal. Y Indebtedness: The City will likely be responsible for any SCLD outstanding indebtedness present at the time of the City's withdrawal. Assets: It is likely that the SCLD will retain possession of the library materials and building if the City withdraws. City of Spokane Valley - Office of the City Attorney Questions? City of Spokane Valley - Office of the City Attorney i8 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ® admin. report Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Transportation and Infrastructure Funding — Utility Taxes GOVERNING LEGISLATION: RCW 35A.82.020 Licenses and permits — Excises for regulation; RCW 35.21.865 Electricity, telephone, or natural gas business — Limitations on tax rate changes; RCW 35.21.870 Electricity, telephone, natural gas, or steam energy business — Tax limited to six percent — Exception PREVIOUS COUNCIL ACTION TAKEN: None BACKGROUND: Since 2004, Council has had periodic discussions regarding the need and potential options for funding current and projected future deficits in the City's transportation and infrastructure programs, including the option of a utility tax. In 2004 a proposed Utility Tax Ordinance was introduced in response to projected deficits in the City's Street Fund #101, but Council ultimately decided not to have a second reading of the ordinance. The discussion was postponed for a few years due to the City receiving more in both property taxes and sales taxes than was originally anticipated in the first few years of incorporation. However, in 2008 the City was once again faced with annual deficits of approximately $2.1 million in the Street Fund #101, and Council was confronted with the choice of either increasing revenues or reducing street maintenance activities in order to reduce costs. The decision was made to increase revenues through a 6% Telephone Utility Tax through passage of Ordinance 08-014 in August 2008. The Telephone Utility Tax generated $3.054 million during 2009 in its first year of implementation, which served the purpose of eliminating the deficit in the Street Fund #101. However, between 2009 and 2015 the City has seen an annual average decrease of 4.92% in the amount of Telephone Utility Taxes collected. So far in 2016, the City has collected $134,993 or 8.82% less in Telephone Utility Taxes than during the same period of 2015 (see Attachment #1), and we are projecting collections of about $2.2 million for the 2017 Budget. This represents an overall reduction of about $850,000 in revenues since the tax's inception in 2009 while at the same time we have continued to see an increase in the cost of service contracts and materials throughout the same time period. Declining revenues in the Street Fund #101 combined with an increasing use of Real Estate Excise Taxes (REET) towards the Pavement Preservation program have once again placed the City in the position of looking at options on how to fund current and projected future deficits in transportation and infrastructure programs. So far during 2016, Council has discussed this topic in detail at both the March 15, 2016 Workshop and the June 14, 2016 Budget Workshop. This topic has also been discussed throughout the 2017 Budget development process at Council meetings on August 9th September 13th, September 27th, and October 11th. The Finance Committee also discussed this topic on May 12th, September 12th, and October 10th. Included in the discussions has been 1 of 5 dialogue regarding the deficits and needs in transportation and infrastructure programs at the City as well as options for funding those deficits. Street Fund #101: The City's transportation and infrastructure programs are operated out of several different City Funds. The Street Fund #101 generally accounts for the operations and maintenance of City streets. Maintenance work in Fund #101 includes street pavement repairs, traffic signals and signs, landscaping and vegetation control, snow and ice control, and many other street maintenance and repair activities. The main revenue sources for Fund #101 are Motor Vehicle Fuel Taxes which are passed through to the City from the State and the City's telephone utility tax which is imposed by the City under SVMC Chapter 3.70 at a rate of 6%. As noted above, the City has continued to see a decline in the annual amount of telephone utility taxes collected. The budget for the Street Fund in the past several years has reflected cost cutting measures in order to keep recurring expenditures from exceeding projected recurring revenues. Attachment #2 depicts three years of actual activity for the Street Fund, the amended 2016 Budget, the proposed 2017 Budget, and projected activity from 2018 through 2021. The assumptions used in the projection are as follows: • We assumed that the telephone utility tax would be completely replaced by an alternate revenue stream. • The dollar amount of the projected alternate revenue stream is the amount necessary for estimated recurring expenditures to break even with recurring revenues. • We assumed an increase of 2% annually for most expenditures as a reasonable measure of anticipated inflation. • The Street Fund is assumed to have no contributions to the Pavement Preservation Fund #311 from 2018 forward. Using these assumptions, we have calculated the alternate revenue stream necessary to generate approximately $2.9 million annually, or about $700,000 more than the telephone utility tax is anticipated to generate in 2017. Pavement Preservation Fund #311: The Pavement Preservation Fund #311 is used to account for pavement preservation projects within the City. The revenue sources for Fund #311 are composed of transfers -in from other City Funds and grant proceeds. The City has committed to financing the pavement preservation program in Fund #311 in an amount equivalent to 6% of General Fund recurring expenditures which totaled about $2.3 million in the 2017 Budget (consisting of about $953,000 from the General Fund, about $67,000 from the Street Fund, and about $1.3 million from REET). The issue that the City is now faced with in our pavement preservation program is that we are committing an increasing amount of REET revenues toward pavement preservation which is now undermining our ability to provide matching funds for grant proceeds on other types of street construction, reconstruction and sidewalk projects. Attachment #3 displays projected REET revenues and expenditures through 2021, and assumes we continue to finance Pavement Preservation Fund #311 programs from this source. Under this assumption, we will have negative fund balances in our REET Funds beginning in 2019. During the March 15, 2016 Council Workshop, Council was presented with information regarding the City's Pavement Condition Index (PCI). This information indicated that in order to have a target PCI of 71 with no increase in backlog, the City would need to invest about $6.8 2 of 5 million annually in street preservation activities. The $6.8 million included both activities that are generally accounted for in the Street Fund, such as surface treatments, and those that are generally accounted for in Fund #311. We determined the amount of the $6.8 million that solely applied to Fund #311 is about $5.6 million, which was calculated as follows: PCI Needs per March 15, 2016 Workshop $ 6,806,000 Less Street Fund #101 Activities: Surface Treatment (585,000) Slurry Seal (500,000) Routine Maintenance (i.e. Crack Seal) (122,000) (1,207,000) Pavement Preservation Fund #311 Needs $ 5,599,000 Attachment #4 depicts three years of actual activity for the Pavement Preservation Fund, the amended 2016 Budget, the proposed 2017 Budget, and projected activity from 2018 through 2021. The assumptions used in the projection are as follows: • We have assumed that Council wishes to fund pavement preservation at the full amount as discussed at the March 15, 2016 Council Workshop in order to achieve the target PCI of 71. If Council wishes to fund this program at either a higher or lower level, it will affect the amount of the alternate revenue stream correspondingly. • The alternate revenue stream for the Pavement Preservation Fund equals the $5.6 million calculated above less an assumed $953,000 transfer in from the General Fund, $400,000 transfer in from REET funds, and $1 million in estimated grant proceeds. • For analysis purposes, we have assumed expenditures to be equal to revenues. Using these assumptions, we have calculated that in 2018, the alternate revenue stream in the Pavement Preservation Fund would need to generate $3.2 million annually, which combined with the Street Fund 2018 need of $2.9 million, results in a 2018 total need of $6.1 million. The total amount needed to be generated by an alternate revenue stream in the years 2018 through 2021 is as follows: Projected Funding Needs: Street Fund #101 Pavement Pres Fund #311 Projected (in millions) 2018 2019 2020 2021 $ 2.9 $ 3.0 $ 3.1 $ 3.2 3.2 3.2 3.2 3.2 Combined Funding Needs $ 6.1 $ 6.2 $ 6.3 $ 6.4 We anticipate the revenue stream referenced above will be required each year beyond 2021 if the City wishes to maintain streets at this level of service. Utility Tax: The City has the authority to impose utility taxes under RCW 35A.82.020. The tax rate is limited to 6% (without a vote of the people) for the following: • Electricity • Natural gas • Steam 3 of 5 • Telephone A higher tax rate may be imposed with majority voter approval. There are no rate limits for the following activities: • Sewer/Stormwater • Solid waste • Water • Cable television (however, the rate must be the same or similar to other utilities in order to not be discriminatory) There are no statutory limitations on the use of utility tax revenues; however, Council may choose to dedicate the revenues toward a specific activity, such as transportation and infrastructure needs. Any changes in the tax rate cannot take effect until the end of 60 days after the enactment of the ordinance by the City. Currently the City only imposes a utility tax of 6% on telephone providers, which was effective beginning January 1, 2009. The revenue generated by this tax is designated in SVMC Chapter 3.70.140 for exclusive use in the City road fund (Street Fund #101), as is discussed previously in the Street Fund #101 section above. One of the reasons that a broader utility tax has been rejected by the City in the past is that we did not believe that we could impose the utility tax on quasi -municipal entities providing utility services in the City. Our area is unique in that we have a mixture of utility providers that are either private businesses or quasi -municipal entities. If the City were to impose a utility tax on only the private business, it would cause an inequity among citizens who were contributing toward the tax because some citizens are served by private businesses and others are served by quasi -municipal entities. However, a court case in 2014 clarified that the City can impose a utility tax on another municipality or public agency if they are deriving revenues on proprietary activities. The case was specifically related to water utilities but applies to any activity that is considered to be proprietary in nature. That being the case, the City is generally no longer in the position of only imposing a utility tax on some providers and not others, which makes any future utility tax apply more equitably to all of the City's population. In light of the City's current and projected future deficits in transportation and infrastructure programs, Council has requested staff to research revenue estimates for utility taxes on electricity, natural gas, sewer, solid waste disposal, and water. Attachment #5 shows the revenue estimates ranging from a 1°/0 to a 6% utility tax on each of these services. All services combined at 6% would generate an estimated $7.8 million annually. For comparison purposes, Attachment #6 shows the utility tax rates of neighboring jurisdictions for various services as well as the current and proposed utility tax rates that are included in the draft Utility Tax Ordinance for Spokane Valley. Draft Utility Tax Ordinance: The draft Utility Tax Ordinance would repeal SVMC Chapter 3.70 relating to the 6% telephone utility tax in its entirety and adopt SVMC Chapter 3.71, which would impose a utility tax on electricity, solid waste disposal, sanitary sewer, water, and natural gas services. The draft Ordinance states that the revenues generated by the tax shall be exclusively used for funding City road projects, including but not limited to road construction, operation, maintenance, and preservation, sidewalks, railroad grade separation, and other similar projects which are directly related to vehicular and pedestrian transportation. 4 of 5 The draft Ordinance currently states that a utility excise tax shall be levied and collected at a rate of 6% of the gross income of sales within the City for the utility services of electrical distribution, solid waste disposal service, sanitary sewer service, water service, and natural gas distribution. Gross income may be adjusted by amounts that were adjusted on a customer billing or account to reverse a billing or charge that was not properly owed by the customer or amounts that are written off as uncollectible debts. Tax payments would be made directly by utility companies to the City Finance Department. The draft Ordinance also outlines penalties and interest assessed for late payments, records retention requirements, and includes an appeals procedure, among other items. OPTIONS: Continue discussion on current and projected deficits for transportation and infrastructure programs, including potential new revenue sources or reductions in services. Staff is seeking consensus to bring the draft Utility Tax Ordinance forward for a public hearing and first reading on November 8, 2016, either as presented or with Council changes. RECOMMENDED ACTION OR MOTION: None at this time. A public hearing and first reading of the draft Ordinance are scheduled for November 8, 2016. BUDGET/FINANCIAL IMPACTS: A utility tax of 6% on electricity, natural gas, solid waste disposal, sewer, and water services would generate an estimated $7.8 million annually. A utility tax imposed at a lower rate, or on some but not all of the services, would generate less annually. If no utility tax is imposed, the City will continue to see current and projected future deficits for transportation and infrastructure program, which will necessitate a reduction in services in order to match existing revenue sources. STAFF CONTACT: Chelsie Taylor, Finance Director, and Cary Driskell, City Attorney ATTACHMENTS: • Illustrative Attachments: o Attachment #1 — Telephone Utility Tax Collections for the Year 2009 through 2016 o Attachment #2 — Street Fund #101 Projection through 2021 o Attachment #3 — Analysis of Real Estate Excise Tax (REET) Revenues o Attachment #4 — Pavement Preservation Fund #311 Projection through 2021 o Attachment #5 — Annual Utility Tax Revenue Estimates for the City o Attachment #6 — Comparison of Utility Tax Rates with Other Jurisdictions • Draft Utility Tax Ordinance • PowerPoint Presentation 5 of 5 CITY OF SPOKANE VALLEY, WA Telephone Utility Tax Collections - August For the years 2009 through 2016 January February March April May June July August Collected to date Attachment #1 2009 1 2010 1 2011 2012 1 2013 1 2014 1 2015 1 2016 128,354 282,773 230,721 275,775 242,115 239,334 269,631 260,408 234,622 266,041 264,175 254,984 255,056 251,880 250,593 246,261 241,357 230,366 245,539 238,561 236,985 239,013 244,191 349,669 193,818 261,074 234,113 229,565 227,469 234,542 226,118 228,789 217,478 216,552 223,884 214,618 129,270 293,668 213,078 211,929 210,777 205,953 208,206 206,038 210,010 210,289 205,651 205,645 177,948 212,845 174,738 214,431 187,856 187,412 190,984 185,172 182,167 173,971 177,209 171,770 174,512 170,450 174,405 171,909 10/10/2016 2016 to 2015 Difference 0/0 4,219 2.37% (38,874) (18.26%) 2,471 1.41% (42,661) (19.89%) (13,344) (7.10%) (16,962) (9.05%) (16,579) (8.68%) (13,263) (7.16%) 1,929,111 2,023,612 2,025,681 1,835,488 1,720,477 1,662,569 1,531,386 1,396,393 (134,993) (8.82%) September 249,380 240,111 241,476 227,042 210,602 199,193 183,351 0 October 252,388 238,500 237,111 225,735 205,559 183,767 183,739 0 November 254,819 247,848 240,246 225,319 212,947 213,454 175,235 0 December 368,775 236,065 236,449 221,883 213,097 202,077 183,472 0 Total Collections 3,054,473 2,986,136 2,980,963 2,735,467 2,562,682 2,461,060 2,257,183 1,396,393 Budget Estimate 2,500,000 2,800,000 3,000,000 3,000,000 2,900,000 2,750,000 2,565,100 2,340,000 Actual over (under) budg 554,473 186,136 (19,037) (264,533) (337,318) (288,940) (307,917) (943,607) Total actual collections as a % of total budget 122.18% 106.65% 99.37% 91.18% 88.37% 89.49% 88.00% n/a % change in annual total collected n/a (2.24%) (0.17%) (8.24%) (6.32%) (3.97%) (8.28%) n/a % of budget collected through August 77.16% 72.27% 67.52% 61.18% 59.33% 60.46% 59.70% 59.67% % of actual total collected through August 63.16% 67.77% 67.95% 67.10% 67.14% 67.55% 67.85% n/a Chart Reflecting History of Collections through the Month of August 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 August 2009 2010 2011 2012 2013 2014 2015 2016 August July June May April March ■ February =January CITY OF SPOKANE VALLEY, WA Fund #101 - Street Fund Projection through 2021 RECURRING ACTIVITY Revenues Attachment #2 (1) Actual 2013 Actual 2014 Actual 2015 Amended Budget 2016 Proposed Budget 2017 7/7/2016 9/8/2016 11/1/2016 Projected 2018 1 2019 1 2020 1 2021 Telephone Utility Tax Alternative Utility Tax 2,562,722 2,461,060 2,257,184 2,340,000 2,200,000 O 0 0 0 0 0 0 0 0 2,869,965 2,963,969 3,059,853 3,157,654 Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Insurance Premiums & Recoveries Miscellaneous Revenue Total Recurring Revenues Expenditures Wages / Benefits / Payroll Taxes Supplies Services & Charges Snow Operations Intergovernmental Payments Interfund Transfers -out - #001 Interfund Transfers -out - #311 (pavement preservation) Interfund Transfers -out - #501 (non -plow vehicle rental) Interfund Transfers -out - #501 (plow replace.) Signal Detection Replacement Program Traffic Signal Replacement Program Total Recurring Expenditures Recurring Revenues over (under) Recurring Expenditures NONRECURRING ACTIVITY (2) (3) 1,868,055 1,878,476 1,935,629 2,004,900 2,040,300 2,040,300 2,040,300 2,040,300 2,040,300 O 0 0 0 98,868 98,868 98,868 98,868 98,868 O 0 0 50,000 50,000 50,000 50,000 50,000 50,000 2,920 2,037 3,212 3,000 4,000 4,000 4,000 4,000 4,000 1,790 4,204 4,319 0 0 0 0 0 0 12,911 5,209 9,649 10,000 10,000 10,000 10,000 10,000 10,000 4,448,398 4,350,986 4,209,993 4,407,900 4,403,168 5,073,133 5,167,137 5,263,021 5,360,822 582,013 681,165 738,381 734,604 746,872 761,809 777,046 792,587 808,438 108,110 460,844 116,660 111,500 105,000 107,100 109,242 111,427 113,655 2,152,294 2,197,089 2,052,457 2,132,754 2,167,151 2,541,994 2,592,834 2,644,691 2,697,584 485,717 0 465,232 430,000 468,000 477,360 486,907 496,645 506,578 797,275 876,680 707,967 771,000 796,000 811,920 828,158 844,722 861,616 39,700 39,700 39,700 39,700 39,700 39,700 39,700 39,700 39,700 282,000 282,000 206,618 67,342 67,342 0 0 0 0 10,777 10,777 12,077 31,000 23,250 23,250 23,250 23,250 23,250 150,000 75,000 0 40,000 77,929 70,000 70,000 70,000 70,000 O 0 0 0 40,000 40,000 40,000 40,000 40,000 O 0 0 0 200,000 200,000 200,000 200,000 200,000 4,607,886 4,623,255 4,339,092 4,357,900 4,731,244 5,073,133 5,167,137 5,263,021 5,360,822 (159,488) (272,269) (129,099) 50,000 (328,076) 0 0 0 0 (5,716) (85,721) (133,068) (25,000) (120,000) 0 0 0 0 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (165,204) (357,990) (262,167) 25,000 (448,076) 0 0 0 0 Beginning fund balance 2,228,438 2,063,234 1,705,244 1,443,077 1,468,077 1,020,001 1,020,001 1,020,001 1,020,001 Ending fund balance 2,063,234 1,705,244 1,443,077 1,468,077 1,020,001 1,020,001 1,020,001 1,020,001 1,020,001 Assumptions (1) The actual numbers presented for 2015 are preliminary and unaudited as of July 6, 2016. They are subject to change as we complete the audit process. (2) For purposes of this analysis, we assumed that the telephone utility tax will be replaced with a different utility tax revenue stream. As such, telephone utility taxes are projected at $0 for the years of 2018 through 2021. (3) The projection for the alternative utility tax equals the amount necessary to bring recurring revenues to an amount that covers recurring expenditures for the years 2018 through 2021. (4) For purposes of this projection, expenditures from 2018 to 2021 are calculated at an increase of 2% annually. The expenditures for 2018 were increased by $395, 000 in order to eliminate service reductions that had taken place in previous years due to budget constraints. (5) The Street Fund is assumed to have no contributions to the Pavement Preservation Fund from 2018 to 2021. H:\Utility Taxes\101 and 311 Forecast for Utility Tax Projection.xlsx (4) (5) CITY OF SPOKANE VALLEY, WA Analysis of Real Estate Excise Tax (REET) Revenues and Scheduled Disbursements Attachment #3 2016 2017 2018 2019 2/26/2016 3/7/2016 6/14/2016 2020 9/19/2016 10/19/2016 2021 Estimated REET available on January 1 3,322,385 3,281,694 1,509,525 517,567 (450,544) (435,347) Estimated REET revenues 2,002,000 1,602,000 1,602,000 1,602,000 1,602,000 1,602,000 Estimated approved capital expenditures (Engineers estimate) (1,125,319) (419,563) 0 0 0 0 Potential capital expenditures (Top 2 Outstanding Grant Applications) 0 (1,190,669) 0 0 0 0 Barker Road / BNSF Grade Separation (20,000) (280,079) (1,109,000) (799,921) 0 0 Transfer to Fund #311 - Pavement Preservation (730,572) (1,320,958) (1,320,958) (1,320,958) (1,320,958) (1,320,958) WSDOT Potential Grant Repayment 0 0 0 (284,282) (105,095) 0 June 1 debt service payment on 2014 LTGO bonds (18,400) (16,450) (14,500) (12,475) (10,375) (8,275) December 1 debt service payment on 2014 LTGO bonds (148,400) (146,450) (149,500) (152,475) (150,375) (153,275) Estimated REET available on December 31 CURRENT PENDING GRANT APPLICATIONS 1 0141 - Sullivan Euclid PCC (CN)" 2 Safe Routes to School 3 Pedestrian and Bicycle Program Total Barker Road / BNSF Grade Separation Shaded areas reflect known figures. All other figures are estimates. * As discussed at Feb 16 Council Meeting 3,281,694 1,509,525 517,567 (450,544) (435,347) (315,855) 2016 2017 0 950,000 0 220,617 0 20,052 0 1,190, 669 0 ACTUALS Fund 301 Fund Balance @ 1/1/2016 Fund 302 Fund Balance @ 1/1/2016 1,594,088 1,728,297 3,322,385 H:\Utility Taxes\REET PROJ 20160216 with CLT edits.xlsx 2018 0 0 0 0 2019 0 0 0 0 2020 0 0 0 0 2021 0 0 0 0 0 1,109, 000 1,100, 000 0 0 Attachment #4 CITY OF SPOKANE VALLEY, WA Fund #311 - Pavement Preservation Projection through 2021 (1) Actual 2013 Actual 2014 Actual 2015 Revenues Amended Budget 2016 Proposed Budget 2017 7/7/2016 9/8/2016 11/1/2016 Projected 2018 1 2019 2020 1 2021 Alternative Utility Tax Transfers in - #001 General Fund 0 0 0 0 0 3,245,800 3,245,800 3,245,800 3,245,800 0 888,823 920,000 943,800 953,200 953,200 953,200 953,200 953,200 Transfers in - #101 Street Fund Transfers in - #123 Civic Facility Replacement Fund Transfers in -#301 REET 1 Transfers in -#302 REET 2 Grants Miscellaneous Total revenues Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 282,000 282,000 206,618 67,342 67,342 0 0 0 0 616,284 616,284 616,284 559,808 0 0 0 0 0 150,000 184,472 251,049 365,286 660,479 200,000 200,000 200,000 200,000 150,000 184,472 251,049 365,286 660,479 200,000 200,000 200,000 200,000 35,945 2,042,665 835,224 2,063,000 340,800 1,000,000 1,000,000 1,000,000 1,000,000 2,800 1,903 3,390 0 0 0 0 0 0 (2) (3) 1,237,029 4,200,619 3,083,614 4,364,522 2,682,300 5,599,000 5,599,000 5,599,000 5,599,000 1,387,153 3,077,215 2,400,408 4,550,000 3,050,000 5,599,000 5,599,000 5,599,000 5,599,000 (4) (150,124) 1,123,404 683,206 (185,478) (367,700) 0 0 0 0 948,733 798,609 1,922,013 2,605,219 2,419,741 2,052,041 2,052,041 2,052,041 2,052,041 798,609 1,922,013 2,605,219 2,419,741 2,052,041 2,052,041 2,052,041 2,052,041 2,052,041 Pavement Preservation Proiect Totals and Revenues Sources Pavement Preservation Fund #311 1,387,153 3,077,215 2,400,408 4,550,000 3,050,000 5,599,000 5,599,000 5,599,000 5,599,000 General Fund #001 855,841 0 0 0 0 0 0 0 0 2,242,994 3,077,215 2,400,408 4,550,000 3,050,000 5,599,000 5,599,000 5,599,000 5,599,000 Computation of Pavement Preservation Commitment General Fund recurring expenditures prior to addition of pavement preservation Amount equivalent to 6% Pavement preservation expenditures 33,629,496 37,418,882 6.00% 6.00% 2,017,770 2,245,133 38,357,999 6.00% 2,301,500 38,925,602 6.00% 2,335,500 Components of Pavement Preservation Financing #001 General Fund 888,823 920,000 943,800 953,200 #101 Street Fund 282,000 206,618 67,342 67,342 #123 Civic Facilities Replacement Fund 616,284 616,284 559,808 0 #301 Capital Projects Fund 184,472 251,049 365,286 660,479 #302 Special Capital Projects Fund 184,472 251,049 365,286 660,479 2,156,051 2,245,000 2,301,522 2,341,500 Assumptions (1) The actual numbers presented for 2015 are preliminary and unaudited as of June 6, 2016. They are subject to change as we complete the audit process. (2) The projection for the alternative utility tax equals the estimated pavement preservation funding needs less other revenue sources for Fund #311. (3) For purposes of this analysis, the only assumed revenue streams are the General Fund contribution, REET in the amount of $400,000/year and average grant proceeds of $1,000,000/year for the years 2018 through 2021. (4) For analysis purposes, we have assumed expenditures equal to revenues. H:\Utility Taxes\101 and 311 Forecast for Utility Tax Projection.xlsx Attachment #5 CITY OF SPOKANE VALLEY, WA Annual Utility Tax Revenue Estimates for the City DRAFT ANALYSIS - FOR DISCUSSION PURPOSES ONLY 9/8/2016 10/10/2016 11/1/2016 1% Utility Tax 2% Utility Tax 3% Utility Tax 4% Utility Tax 5% Utility Tax 6% Utility Tax Electric Services $762,811 $1,525,621 $2,288,432 $3,051,243 $3,814,053 $4,576,864 Natural Gas Services 261,662 523,325 784,987 1,046,649 1,308,312 1,569,974 Sewer Services 140,827 281,654 422,482 563,309 704,136 844,963 Solid Waste Disposal Services 60,566 121,132 181,698 242,264 302,830 363,396 Water 68,813 137,627 206,440 275,253 344,066 412,880 $1,294,679 $2,589,359 $3,884,039 $5,178,718 $6,473,397 $7,768,077 H:\Utility Taxes\Utility Tax Revenue Estimates.xlsx Attachment #6 CITY OF SPOKANE VALLEY, WA Comparison of Utility Tax Rates with Other Jurisdictions 11/1/2016 Note: Utility tax rates for other juridictions were taken from the AWC 2015 Municipal Taxes and Fees Survey, which was obtained at https://www.awcnet.org/Data Resources/resourcesbytopi c/Taxand U serFeeSu rvey.aspx or from the municipal code of the jurisdiction. Municipality Spokane Liberty Lake Cheney Deer Park Airway Heights Pullman Millwood Spokane Valley - Current Spokane Valley - Proposed Electricity Natural Gas Telephone Cable TV Solid Waste Water Sewer 6.0% 6.0% 6.0% 6.0% 20.0% 20.0% 20.0% 3.0% 3.0% 3.0% 3.0% 3.0% 0.0% 0.0% (1) (1) 6.0% 5.0% 6.0% 11.0% 11.0% 6.0% 6.0% 6.0% 6.0% 12.0% 12.0% 12.0% 6.0% 6.0% 6.0% 3.0% 10.0% 19.8% 15.0% 8.0% 8.0% 8.0% 8.0% 11.0% 8.0% 8.0% 6.0% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6.0% 0.0% 0.0% 0.0% 0.0% 6.0% 6.0% 0.0% 0.0% 6.0% (2) 6.0% 6.0% (1) Rates are 6% for Regular, 4% for Residential Street and 4.75% for Parks. (2) Solid Waste utility tax just proposed for disposal services (not collection services). H:\Utility Taxes\Utility Tax Comparisons Other Jurisdictions.xlsx DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 16-018 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, REPEALING CHAPTER 3.70 SPOKANE VALLEY MUNICIPAL CODE PROVIDING FOR A UTILITY TAX ON TELEPHONE PROVIDERS WITHIN THE CITY OF SPOKANE VALLEY, AND ADOPTING A NEW CHAPTER 3.71 SPOKANE VALLEY MUNICIPAL CODE ESTABLISHING A UTILITY TAX ON CERTAIN UTILITY PROVIDERS, INCLUDING PROCEDURES FOR THE IMPLEMENTATION AND ENFORCEMENT THEREOF, AND OTHER MATTERS PROPERLY RELATED THERETO. WHEREAS, pursuant to RCW 35A.82.020 and RCW 35.21.870, the State of Washington has authorized code cities to raise revenue for the privilege of conducting certain utility businesses in the City, and use the revenues for any lawful City purpose; and WHEREAS, an excise utility tax may be imposed upon gross receipts of a business provided the tax is uniform in its application; and WHEREAS, pursuant to RCW 35.21.870, the City may not impose an excise utility tax on the privilege of conducting an electrical energy, natural gas, steam energy, or telephone business at a rate which exceeds six percent unless the rate is first approved by a majority of voters of the City; and WHEREAS, the City desires to impose a different balance of utility taxes than is currently imposed in an effort to raise sufficient revenue to adequately address the City's street projects, including but not limited to road construction, operation, maintenance, and preservation, sidewalks, railroad grade separation, and other similar projects which are directly related to vehicular and pedestrian transportation; and WHEREAS, the City currently imposes a six percent utility tax on telephone services. Spokane Valley Municipal Code 3.70.140 states that "all net revenues generated through taxation of telephone business pursuant to this chapter [chapter 3.70 SVMC] shall be designated for use exclusively in the City road fund." After full implementation in 2009, that utility tax provided approximately $3.05 million annually. That amount has dropped by almost one-third since 2009 as households reduce the total number of service lines. As such, the telephone utility tax does not provide sufficient revenue for the City's street construction, operation, and maintenance needs; and WHEREAS, the City Council has carefully analyzed and implemented ways to cut unnecessary expenditures across the entire City budget. Despite these efforts, the City is unable to fully fund its street construction, operation, and maintenance needs to the level desired by City Council through the general fund with current revenues; and WHEREAS, the City Council desires to impose utility taxes on the business and utility services of electrical distribution, solid waste disposal service, sanitary sewer service, water service, and natural gas distribution to generate additional revenue that shall be used exclusively for street construction, operation, and maintenance purposes only; and WHEREAS, the City Council desires to repeal in its entirety the existing chapter 3.70 SVMC since replacement funding is being established for street construction, operation, and maintenance purposes. Ordinance 16-018 Utility Tax Page 1 of 6 DRAFT NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County, Washington, ordains as follows: Section 1. Intent. - The City of Spokane Valley declares that the intent of this Ordinance is to repeal chapter 3.70 Spokane Valley Municipal Code relating to the existing utility tax on provision of telephone services, and to adopt a new chapter 3.71 SVMC to impose a utility tax on provision of electricity, solid waste disposal, sanitary sewer, water, and natural gas for the express purpose of providing revenue for the City's street construction, operation, and maintenance needs. Section 2. Repeal chapter 3.70 Spokane Valley Municipal Code. Chapter 3.70 Spokane Valley Municipal Code, Utility Tax, is repealed in its entirety. Section 3. Adoption of chapter 3.71 Spokane Valley Municipal Code. Chapter 3.71 Spokane Valley Municipal Code, Utility Tax, is adopted as follows: 3.71.010 Definitions. Unless the context clearly indicates otherwise, the words, phrases and terms used in this chapter 3.71 SVMC shall have the following meanings: "Electrical distribution" means any Person operating a plant or system for the generation, production, or distribution of electrical energy for hire or sale and/or for the wheeling of electricity for others. "Gross income" means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of investment of capital in the business engaged in (including rentals, royalties, interest and other emoluments however designated) excluding receipts or proceeds from the sale or use of real property or any interest therein and the proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like and without any deduction on account of the cost of the property sold, cost of materials used, labor costs, interest or discount paid, or any expenses whatsoever, and without any deduction on account of losses. Any deductions from gross income upon which the fee or tax is computed are set forth in SVMC 3.71.050. "Natural gas distribution" means any Person operating a plant or system for sale, delivery, distribution, or furnishing of natural gas for domestic, business, or industrial consumption. "Person" means a human being, partnership, corporation, limited liability company, municipality, quasi -municipality, cooperative, and other type of association without limitation, whether acting by themselves or through servants, agents or employees. "Recyclable materials" means those solid wastes that are separated for recycling or reuse, such as papers, metals, and glass, that are designated as recyclable materials pursuant to the City's Solid Waste Management Plan and any applicable contracts between the City and solid waste service providers. "Sanitary sewer service" means a Person providing sanitary sewage disposal and facilities including, without limitation, on-site or off-site sanitary sewer facilities consisting of an approved septic tank or septic tank systems, or any other means of sewage treatment and disposal. "Solid waste" or "wastes" means all putrescible and non-putrescible solid and semi-solid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction waste, abandoned vehicles or parts thereof, and recyclable materials. Ordinance 16-018 Utility Tax Page 2 of 6 DRAFT "Solid waste disposal service" means any Person who receives solid waste or recyclable materials for transfer, storage, transport, or disposal, including but not limited to all public or private solid waste transfer stations, disposal sites, and similar operations. "Taxpayer" means any Person liable for the license fee or tax imposed by this chapter 3.71 SVMC. "Tax Year or Taxable Year" means the calendar year commencing January 1 and ending on December 31. "Utility service" or "utility services" means any of the businesses, services, and activities engaged in by taxpayers subject to the utility excise tax pursuant to SVMC 3.71.020. "Water service" means any Person operating a plant or system for the distribution of water for hire or sale through a system of pipes and related facilities. 3.71.020 Utility Tax Levied. There is levied on and shall be collected from every Person, a utility excise tax for the act or privilege of conducting and engaging in the business and utility services of electrical distribution, solid waste disposal service, sanitary sewer service, water service, and natural gas distribution, equal to the gross income of sales from customers within the City, multiplied by the applicable tax rate pursuant to SVMC 3.71.030. 3.71.030 Utility Services Subject to Tax - Rates. The utility excise tax authorized pursuant to SVMC 3.71.020 shall apply to the following utility services, and shall be subject to the rates specified herein: Electrical distribution - 6% Solid waste disposal - 6% Sanitary sewer - 6% Water distribution - 6% Natural gas - 6% 3.71.040 Remittance. (A) Remittance. The utility excise tax imposed and levied pursuant to chapter 3.71 SVMC shall be collected, reported, and remitted to the City on or before the last day of the subsequent month. Each Taxpayer subject to payment of the utility excise tax shall designate in writing to the Finance Director whether it will remit monthly or quarterly, with said designation being provided by January 1, 2017. (B) Returns. The remittance shall be in legal United States tender and shall be accompanied by a return on a form to be prescribed and provided by the City. The Taxpayer shall swear or affirm in writing on the return that the information therein given is full and true, and that the Taxpayer knows it to be so. Failure to file a return as required herein after engaging in the provision of utility services shall subject the Person to remedies and penalties pursuant to SVMC 3.71.070. 3.71.050 Deductions. In computing the tax imposed by chapter 3.71 SVMC, a deduction from the measure of the utility excise tax may be taken under the following circumstances: (A) Adjustments made to a billing or customer account by Taxpayer to reverse a billing or charge that was not properly a debt of the customer; or Ordinance 16-018 Utility Tax Page 3 of 6 DRAFT (B) Uncollectible debts written off the Taxpayer's books during the tax year. If such debts are subsequently collected by Taxpayer, the income shall be reported for the period in which it is collected. 3.71.060 Record Retention Requirements. It shall be the duty of every Taxpayer liable for payment of the utility excise tax pursuant to chapter 3.71 SVMC to keep and preserve for a period of at least five years such books and records as will accurately reflect the amount of Gross Income from the utility services, and from which can be determined the amount of any utility excise tax for which the Taxpayer may be liable under the provisions of chapter 3.71 SVMC. The term "books and records" as used in this section includes but is not limited to copies of the Taxpayer's Federal income tax returns, Federal excise tax returns, state of Washington excise tax returns, and copies of income tax and excise tax audits made by the United States or the state of Washington and furnished to such Taxpayer. The Taxpayer's books and records shall be available for examination at all reasonable times by a representative of the City. 3.71.070 Tax Delinquency -- Unlawful Acts. (A) Penalties and Interest. For each payment due, if such payment is not made by the due date thereof, there shall be added penalty and interest as follows: (1) If paid 1-15 days late, there shall be a penalty of 5% added to the amount of tax due. (2) If paid 16-30 days late, there shall be a penalty of 10% added to the amount of tax due. (3) If paid 31-60 days late, there shall be a penalty of 15% added to the amount of tax due. (4) If paid in excess of 60 days late, there shall be a penalty of 20% added to the amount of tax due. (5) In addition to the above penalty, the City shall charge the Taxpayer interest on all utility excise taxes past due at the rate of one percent per 30 days or pro -rated portion thereof from the date such amounts become past due. (B) Collection. The utility excise tax imposed and levied pursuant to chapter 3.71 SVMC, and all penalties and interest thereon, shall constitute a debt to the City, and may be collected by court proceedings in the same manner as any other debt, which remedy shall be in addition to all other available remedies. Any judgment entered in favor of the City may include an award to the City of all court and collection costs including attorneys' fees to the extent permitted by law. Amounts delinquent more than 60 days may be assigned to a third party for collection, in which case the amount of any collection charges shall be in addition to all other amounts owed. Amounts due shall not be considered paid until the City has received payment for the full amount due or has discharged the amount due and not paid. (C) Unlawful Acts. It is unlawful for any Taxpayer liable for the utility excise tax imposed and levied pursuant chapter 3.71 SVMC to fail to pay the utility excise tax when due or for any Taxpayer to make any false or fraudulent return or any false statement in connection with the return. (D) Criminal Penalties. Any Person who intentionally violates any provision of chapter 3.71 SVMC shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to state law or SVMC 8.05.050 as adopted or hereafter amended. Ordinance 16-018 Utility Tax Page 4 of 6 DRAFT 3.71.080 Quitting, Selling, or Transferring Utility Service Business. Whenever any Taxpayer quits a utility service business, or sells out, exchanges, or otherwise disposes of such utility service business, any utility excise tax payable under chapter 3.71 SVMC shall become immediately due and payable, and such Taxpayer shall, within 10 days thereafter, make a return and pay the utility excise tax due. If such tax, interest or penalty has not been paid by the Taxpayer within 10 days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of the full amount of tax, interest, and penalties, and shall withhold from the purchase price an amount sufficient to pay any utility excise tax, interest, and penalties due from the Taxpayer pursuant to chapter 3.71 SVMC. Nothing in chapter 3.71 SVMC is intended, nor shall it be construed, to prohibit the successor from engaging in business in the City pending resolution of the successor's tax liability from the predecessor in interest. 3.71.090 Tax Not Exclusive. The utility excise tax levied herein shall be additional to any license fee or tax imposed or levied under any other law, including under any provision of the SVMC. 3.71.100 Rate Changes. No change in the rate of utility excise tax upon a Person engaged in furnishing utility services shall apply to such activities occurring before the effective date of the change. Furthermore, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the utility excise tax on a Person engaging in the business of providing utility services may take effect sooner than 60 days following the enactment of the ordinance establishing the change. 3.71.110 Appeal Procedure. Any Taxpayer aggrieved by the amount of the tax found to be required under the provisions of chapter 3.71 SVMC may, upon full payment of the amount assessed, appeal from such finding by filing a written notice of appeal with the City Clerk within 14 days from the date such Taxpayer was notified in writing of such amount. The City Clerk shall promptly transmit the notice of appeal to the Hearing Examiner The Hearing Examiner shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not more than 60 days after the filing of the notice of appeal. Any appeal to the Hearing Examiner shall be pursuant to the adopted Hearing Examiner Scheduling Rules and Rules of Conduct, SVMC Appendix B, as applicable. Additionally, the following shall apply to any such appeals: (A) Participation in appeals shall be limited to appellants, the City, and any relevant witnesses thereof. (B) The appellant in any such appeal shall have the burden of proof. (C) A decision by the Hearing Examiner shall be a final administrative action, subject to appeal to Spokane County Superior Court. 3.71.120 Overpayment of Tax. In the event that any Taxpayer makes an overpayment of the utility excise tax owed and, within one year of the date of such overpayment makes application for a refund or credit, the Taxpayer's claims shall be allowed and a refund made by the City upon determination by the City Manager that no other sums are owed by the Taxpayer to the City. In the event other amounts are owed by the Taxpayer, the City may apply the overpayment to those outstanding amounts prior to refund. 3.71.130 Designation of Use of Funds Generated by Utility Tax. All net revenues generated through taxation of utility businesses pursuant to chapter 3.71 SVMC shall be used exclusively for funding City road projects, including but not limited to road construction, operation, maintenance, and Ordinance 16-018 Utility Tax Page 5 of 6 DRAFT preservation, sidewalks, railroad grade separation, and other similar projects which are directly related to vehicular and pedestrian transportation. Section 4. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 5. Effective Date. This Ordinance shall be in full force and effect 30 days after date of publication of this Ordinance or a summary thereof in the official newspaper of the City, and pursuant to RCW 35.21.865, the taxes imposed herein shall take effect on January 16, 2017. PASSED by the City Council of the City of Spokane Valley this day of , 2016. ATTEST: Christine Bainbridge, City Clerk Approved as to Form: Office of the City Attorney Date of Publication: Effective Date: L.R. Higgins, Mayor Ordinance 16-018 Utility Tax Page 6 of 6 City of Spokane Valley Transportation & Infrastructure Funding - Utility Taxes Administrative Report November 1, 2016 Background Council discussion related to funding current and projected future deficits in transportation & infrastructure goes back to 2004. Proposed Utility Tax Ordinance in 2004 Did not advance to a 2nd reading. Telephone Utility Tax Ordinance 08-014 Discussions during 2016: March 15, 2016 — Council Workshop; June 14, 2016 — Budget Workshop; 2017 Budget Development — August 9th, September 13th, September 27th, October October 25th; and Finance Committee Meetings — May 12th, September 12th, October 10tH Street Fund #101 The Street Fund generally accounts for the operations and maintenance of City Streets. Includes street pavement repairs, traffic signals and signs, landscaping and vegetation control, snow and ice control, etc. Major Revenue Sources: Motor Vehicle Fuel Tax Telephone Utility Tax Has decreased at an average annual rate of 4.92% since implementation. Currently collected $135k less in 2016 than the same period in 2015. Street Fund #101 $4.00 $3.00 a 0 $2.00 a $1.00 $- Telephone Utility Tax 2009 2010 2011 2012 2013 2014 2015 2016 2017 Actual 2009 to 2015, Budget 2016 and 2017 Street Fund 1*101 - Projection RECURRING ACTIVITY Revenues (1) Actual 2013 Actual 2014 Actual 2015 Amended Budget 2016 Proposed Budget 2017 Projected 2018 1 2019 1 2020 1 2021 Telephone Utility Tax Alternative Utility Tax 2,562,722 2,461,060 2,257,184 2,340,000 2,200,000 0 0 0 0 0 0 0 0 0 2,869,965 2,963,969 3,059,853 3,157, 654 Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Insurance Premiums & Recoveries Miscellaneous Revenue Total Recurring Revenues Expenditures Wages / Benefits / Payroll Taxes Supplies Services & Charges Snow Operations Intergovernmental Payments Interfund Transfers -out - #001 Interfund Transfers -out - #311 (pavementpreservaton) Interfund Transfers -out -#501 (non -plow vehicle rental) Interfund Transfers -out - #501 (plow replace.) Signal Detection Replacement Program Traffic Signal Replacement Program Total Recurring Expenditures Recurring Revenues over (under) Recurring Expenditures 1 NONRECURRING ACTIVITY 1,868,055 0 0 2,920 1,790 12,911 1,878,476 1,935,629 O 0 O 0 2,037 3,212 4,204 4,319 5,209 9,649 2,004,900 0 50,000 3,000 0 10,000 2,040,300 98,868 50,000 4,000 0 10,000 2,040,300 98,868 50,000 4,000 0 10,000 2,040,300 98,868 50,000 4,000 0 10,000 2,040,300 2,040,300 98,868 98,868 50,000 50,000 4,000 4,000 0 0 10,000 10,000 4,448,398 4,350,986 4,209,993 4,407,900 4,403,168 5,073,133 5,167,137 5,263,021 5,360,822 582,013 108,110 2,152, 294 485,717 797,275 39,700 282,000 10,777 150,000 0 0 681,165 ' 738,381 460,844 1 16, 660 2,197,089 2,052,457 O 465,232 876,680 707,967 39,700 i 39,700 282,000 206,618 10,777 12,077 75,000 0 O 0 O 0 734,604 111,500 2,132, 754 430,000 771,000 39,700 67,342 31,000 40,000 0 0 746,872 761,809 105,000 107,100 2,167,151 2,541,994 468,000 477,360 796,000 811,920 39,700 39,700 67,342 0 23,250 23,250 77,929 70,000 40,000 40,000 200,000 200,000 777,046 ' 792,587 109,242 111,427 2,592,834 ; 2,644,691 486,907 1 496,645 828,158 844,722 39,700 39,700 0 0 23,250 23,250 70,000 70,000 40,000 40,000 200,000 200,000 808,438 1 13, 655 2,697,584 506,578 861,616 39,700 0 23,250 70,000 40,000 200,000 4,607,886 4,623,255 4,339,092 4,357,900 4,731,244 5,073,133 5,167,137 5,263,021 5,360,822 (159,488) (272,269) (129,099) 50,000 (328,076) 0 0 0 0 (5,716) (85, 721) (133, 068) (25, 000) (120, 000) 0 0 0 0 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (165,204) (357,990) (262,167) 25,000 (448,076) 0 0 0 0 Beginning fund balance 2,228,438 2,063,234 1,705,244 1,443,077 1,468,077 1,020,001 1,020,001 1,020,001 1,020,001 Ending fund balance 2,063,234 1,705,244 1,443,077 1,468,077 1,020,001 1,020,001 1,020,001 1,020,001 1,020,001 Assumptions (1) The actual numbers presented for 2015 are preliminary and unaudited as of July 6, 2016. They are subject to change as we complete the audit process. (2) For purposes of this analysis, we assumed that the telephone utility tax will be replaced with a different utility tax revenue stream. As such, telephone utility taxes are projected at $0 for the years of 2018 through 2021. (3) The projection for the alternative utility tax equals the amount necessary to bring recurring revenues to an amount that covers recurring expenditures for the years 2018 through 2021. (4) For purposes of this projection, expenditures from 2018 to 2021 are calculated at an increase of 2% annually. The expenditures for 2018 were increased by $395000 in order to eliminate service reductions that had taken place in previous years due to budget constraints. (5)The Street Fund is assumed to have no contributions to the Pavement Preservation Fund from 2018 to 2021. (2) (3) (4) V (5) Pavement Preservation Fund #311 The Pavement Preservation Fund accounts for pavement preservation projects within the City. The City has committed to funding pavement preservation through transfers in an amount equivalent to 6% of General Fund recurring expenditures. Equals about $2.3 million in the 2017 Budget. Transfers in come from the General Fund #001, Street Fund #101, REET 1 Fund #301, and REET 2 Fund #302. Transfers in from the Civic Facilities Replacement Fund #123 end after 2016. The City is committing an increasing amount of REET revenues toward pavement preservation, which is beginning to impact the City's ability to match grant funding for other street projects. Negative REET fund balance projected in 2019. Pavement Preservation Fund #311 Actual 2014 - #311 Funding Transfers in 001 101 301 & 302 123 Budget 2017 - #311 Funding Transfers in 0% 3% 001 101 301 & 302 123 Pavement Preservation Fund #311 (1) Actual 2013 Actual 2014 Actual 2015 Revenues Amended Budget 2016 Proposed Budget 2017 Projected 2018 1 2019 1 2020 1 2021 Alternative Utility Tax Transfers in - #001 General Fund O 0 0 0 0 3,245,800 3,245,800 3,245,800 3,245,800 O 888,823 920,000 943,800 953,200 953,200 953,200 953,200 953,200 Transfers in - #101 Street Fund Transfers in - #123 Civic Facility Replacement Fund Transfers in - #301 REET 1 Transfers in - #302 REET 2 Grants Miscellaneous Total revenues Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 282,000 616,284 150,000 150,000 35,945 2,800 282,000 616,284 184,472 184,472 2,042,665 1,903 206,618 616,284 251,049 251,049 835,224 3,390 67,342 559,808 365,286 365,286 2,063,000 0 67,342 0 660,479 660,479 340,800 0 O 0 0 0 O 0 0 0 200,000 200,000 ' 200,000 200,000 200,000 200,000 200,000 200,000 1,000,000 1,000,000 1,000,000 1,000,000 O 0 0 0 1,237,029 4,200,619 3,083,614 4,364,522 2,682,300 5,599,000 5,599,000 5,599,000 5,599,000 (2) (3) 1,387,153 3,077,215 2,400,408 4,550,000 3,050,000 5,599,000 5,599,000 5,599,000 5,599,000 (4) (150,124) 1,123,404 683,206 (185,478) (367,700) 0 0 0 0 948,733 798,609 1,922,013 2,605,219 2,419,741 2,052,041 2,052,041 2,052,041 2,052,041 798,609 1,922,013 2,605,219 2,419,741 2,052,041 2,052,041 2,052,041 2,052,041 2,052,041 Pavement Preservation Project Totals and Revenues Sources Pavement Preservation Fund #311 1,387,153 3,077,215 j 2,400,408 4,550,000 3,050,000 5,599,000 5,599,000 5,599,000 5,599,000 General Fund #001 855,841 0 0 0 0 0 0 0 0 2,242,994 3,077,215 2,400,408 4,550,000 3,050,000 5, 599, 000 5, 599, 000 5, 599, 000 5, 599, 000 Computation of Pavement Preservation Commitment General Fund recurring expenditures prior to addition of pavement preservation Amount equivalent to 6% Pavement preservation expenditures Components of Pavement Preservation Financing #001 General Fund #101 Street Fund #123 Civic Facilities Replacement Fund #301 Capital Projects Fund #302 Special Capital Projects Fund 33,629,496 37,418,882 6.00% 6.00% 2,017,770 2,245,133 38, 357, 999 6.00% 2,301,500 38, 925, 602 6.00% 2,335,500 888,823 ! 920,000 282,000 IP. 206,618 616,284 616,284 184,472 = 251,049 184,472 251,049 943,800 67,342 559,808 365,286 365,286 953,200 67,342 0 660,479 660,479 2,156,051 2,245,000 2,301,522 2,341,500 Assumptions (1) The actual numbers presented for 2015 are preliminary and unaudited as of June 6, 2016. They are subject to change as we complete the audit process. (2) (3) (4) The projection for the alternative utility tax equals the estimated pavement preservation funding needs less other revenue sources for Fund #311. For purposes of this analysis, the only assumed revenue streams are the General Fund contribution, REET in the amount of $400,000/year and average grant proceeds of $1,000,000/year for the years 2018 through 2021. For analysis purposes, we have assumed expenditures equal to revenues. Combined #101 and #311 Projected Funding Needs: Street Fund #101 Pavement Pres Fund #311 Projected (in millions) 2018 2019 2020 2021 $ 2.9 $ 3.0 $ 3.1 $ 3.2 3.2 3.2 3.2 3.2 Combined Funding Needs $ 6.1 $ 6.2 $ 6.3 $ 6.4 Utility Taxes Utility tax limited by state law to 6% (without voter approval) for: Electricity Natural gas Steam Telephone Utility tax NOT limited by state law for: Sewer/Stormwater Solid waste Water Cable television (cannot be discriminatory) Utility Taxes There are no statutory limitations on the use of utility tax revenues. Any changes in the tax rate cannot take effect until the end of 60 days after the enactment of an ordinance by the City. Taxation of Other Municipalities Clarified through a court case in 2014 that a city may impose utility taxes on other jurisdictions if they are acting in a proprietary capacity. Utility Taxes Revenue Estimates 1% Utility 2% Utility 3% Utility 4% Utility 5% Utility 6% Utility Tax Tax Tax Tax Tax Tax Electric Services $762,811 $1,525,621 $2,288,432 $3,051,243 $3,814,053 $4,576,864 Natural Gas Services 261,662 523,325 784,987 1,046,649 1,308,312 1,569,974 Sewer Services 140,827 281,654 422,482 563,309 704,136 844,963 Solid Waste Disposal Services 60,566 121,132 181,698 242,264 302,830 363,396 Water 68,813 137,627 206,440 275,253 344,066 412,880 $1,294,679 $2,589,359 $3,884,039 $5,178,718 $6,473,397 $7,768,077 Utility Taxes Municipality Spokane Liberty Lake Cheney Deer Park Airway Heights Pullman Millwood Spokane Valley - Spokane Valley - Current Proposed Comparison to Neighboring Jurisdictions Electricity Natural Gas Telephone Cable TV Solid Waste Water Sewer 6.0% 6.0% 6.0% 6.0% 20.0% 20.0% 20.0% 3.0% 3.0% 3.0% 3.0% 3.0% 0.0% 0.0% (1) (1) 6.0% 5.0% 6.0% 11.0% 11.0% 6.0% 6.0% 6.0% 6.0% 12.0% 12.0% 12.0% 6.0% 6.0% 6.0% 3.0% 10.0% 19.8% 15.0% 8.0% 8.0% 8.0% 8.0% 11.0% 8.0% 8.0% 6.0% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6.0% 0.0% 0.0% 0.0% 0.0% 6.0% 6.0% 0.0% 0.0% 6.0% (2) 6.0% 6.0% (1) Rates are 6% for Regular, 4% for Residential Street and 4.75% for Parks. (2) Solid Waste utility tax just proposed for disposal services (not collection services). Note: Utility tax rates for otherjuridictions were taken from the AWC 2015 Municipal Taxes and Fees Survey, which was obtained at https://www.awcnet.org/DataResou rces/resourcesbytopi c/Taxand Use rFeeSurvey.aspx or from the municipal code of the jurisdiction. Draft utility tax ordinance Draft Ordinance repeals chapter 3.70 Spokane Valley Municipal Code, Utility Tax, in its entirety. This eliminates the current 6% utility tax on telephone services. Draft utility tax ordinance 3.71.010 - definition section. 3.71 .020 — establishes a utility tax on provision of the following services: electrical distribution solid waste disposal sanitary sewer water natural gas distribution 3.71.030 — establishes the rate at which the tax would apply at 6% for each of the taxed services. Draft utility tax ordinance 3.71.040 — requires submittal of a monthly report for each entity providing such services to document taxable activity. 3.71.050 — providers will be allowed to deduct certain amounts from gross income that will not be taxed. 3.71.060 — addresses record retention requirements to be able to document gross income for purposes of calculating the tax so that the City may perform appropriate audits. 3.71.070 — establishes penalties for utility companies failing to pay the taxes on time, that the City may collect past due amounts in any manner authorized by law, and that intentional non-payment of taxes due is a criminal violation. Draft utility tax ordinance 3.71.080 — in the event a utility company quits doing business, or consolidates with another entity, the taxes due and owing before such an act are still due and owing to City. 3.71.090 — utility taxes due under this chapter are in addition to any other fee due under SVMC or other applicable law. 3.71.100 — any future rate changes may only occur after at least 60 days notice under state law. 3.71.110 — any utility provider believing it has been assessed an incorrect amount of taxes may appeal to the City Hearing Examiner. Draft utility tax ordinance 3.71.120 — if a utility company believes it paid too much in tax based on its gross income, it can request a refund of the overpayment. 3.71.130 — requires that all revenue generated from these utility taxes shall be "exclusively used for funding City road projects, including but not limited to road construction, operation, maintenance, and preservation, sidewalks, railroad grade separation, and other similar projects which are directly related to vehicular and pedestrian transportation." Questions? CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Spokane Regional Transportation Management Center Interlocal Agreement GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Informational memorandum on SRTMC Interlocal Agreement, March 24, 2015; Administrative report on SRTMC Interlocal Agreement, March 31, 2015; Motion for consideration on SRTMC Interlocal Agreement, April 14, 2015; Administrative Report on SRTMC Interlocal Agreement Amendment No. 2, December 1, 2015; Motion for consideration on SRTMC Interlocal Agreement Amendment No. 2, December 8, 2015; Informational memorandum on SRTMC Interlocal Agreement, July 5, 2016; Administrative Report on SRTMC Interlocal Agreement, July 12, 2016; Motion passed July 26, 2016, to continue with the SRTMC through calendar year 2017 and once the Interlocal Agreement is finalized, to bring the document back to Council for approval as part of a future Council agenda item; Informational memorandum on SRTMC Interlocal Agreement, October 25, 2016. BACKGROUND: Planning for the Spokane Regional Transportation Management Center (SRTMC) began in 1998 and led to the development of an interlocal agreement between the Washington State Department of Transportation (WSDOT), Spokane County, Spokane Transit Authority (STA), City of Spokane, and the Spokane Regional Transportation Council (SRTC). The intent of the SRTMC is to provide a multi -jurisdictional control facility for the partnering agencies to enhance and support advanced transportation management capabilities. The SRTMC was originally intended to serve as a hub for regional transportation communications and to provide a seamless coordination of intelligent transportation system (ITS) devices, including traffic signals across agency boundary lines. The center operates twenty-four hours a day, seven days a week for 365 days a year, and has done so since 2003. The SRTMC relies on federal grant funding, yearly member contributions, and WSDOT directed funds. The federal grants and member contributions fund the SRTMC Manager, the IT Manager, two operators, software maintenance contracts, operation of the website, and daily hardware maintenance and functions for the center. The City's contribution historically has been $15,000 per year. However, the member agency contributions have been waved in 2015 and 2016, and are likely to be waved in 2017 pending the 2017 SRTMC budget. The SRTMC has an Operating Board that consists of technical members from each of the partner agencies. The Operating Board is responsible for reviewing and approving SRTMC activities and has monthly board meetings. These board meetings are generally technical in nature and involve discussion of future ITS planning and implementation projects and strategies as well as the reviewing of previous monthly activities, invoices, and billings. As of today, the City of Spokane Valley has 45 traffic signals, 12 cameras, and one dynamic message sign on the City's ITS network. The City provides limited access of our system to the SRTMC, including access to the 12 cameras. Later this year the City will be collecting traffic count data from our traffic signals via the ITS network, and can provide this data to the SRTMC for regional use. The SRTMC has made great headways this year by utilizing federal funds that have been allocated to the center. The SRTMC manager has undergone a very rigorous request for proposals for a new advance transportation management system (ATMS), which is the heart of the SRTMC. The SRTMC now has a very well defined work plan and budget, and has gained positive momentum in the region to provide ITS connectivity. Another recent accomplishment is the SRTMC's recent website upgrade, which is open to the general public and located at www.srtmc.orq. The website contains information about specific corridors and has real-time video feeds from cameras throughout the Spokane region. The website also identifies travel impacts from construction activities throughout the region. Two previous amendments to the 1998 interlocal occurred in 2015. The first amendment set a trial period, added the City of Spokane Valley as an official partner, and identified WSDOT as the lead agency of the SRTMC. City Council agreed to this and approved the first amendment in April of 2015. The second amendment included a sunset clause, and established the termination date of December 31, 2017, unless terminated sooner or extended as provided within the agreement. City Council agreed to this amendment in December of 2015. The SRTMC staff is being proactive in beginning preparation of an updated interlocal agreement with intent to have approvals in 2016, well before the December 31, 2017 termination date. The City currently operates a traffic signal management software that is common to the region. The annual maintenance fee for this software is approximately $10,000 per year, and includes support from the software developer. The cost for the software annual maintenance is currently and has been historically funded through the SRTMC, which would essentially come out of our member contribution of $15,000; therefore our total annual contribution to continue our status as a regional partner in the SRTMC nets to $5,000. If the City were not part of the SRTMC, we would need to pay the annual maintenance fee for the traffic signal management software to maintain operational management of our traffic signal system. Additionally, the services performed at the SRTMC benefit the City of Spokane Valley citizens traveling on regional roadways, such as 1-90, Division Street, SR 195 and SR 395. The benefits include incident response activities, which reduced delay during a collision; accessing and transmitting messages to the variable message signs (VMS) along each roadway, allowing drivers to make decisions regarding alternate routes to avoid delays; and accessing regional cameras to view traffic on the regional roadways. As technology continues to improve, and with the deployment of new systems in the region, the SRTMC will provide more benefit to the region and to our citizens. The City of Spokane Valley is an integral piece in the continuing ITS development within the region, which benefits our citizens by improving their commute throughout the City and region. It is staff's recommendation to continue with the SRTMC while monitoring the SRTMC's annual workplan and budget. The SRTMC interlocal has an opt -out clause, which requires written notification by August 1st to be withdrawn on January 1st of the subsequent year. Staff will immediately notify Council should any changes to the SRTMC workplan or budget result in potential changes in our member contribution. The member contributions for 2017 are expected to be $0. The SRTMC management has finalized the new interlocal agreement, which is enclosed with this RCA. Please note that the City's legal counsel has reviewed and provided comments which are incorporated into the enclosed agreement. The agreement as presented has been approved and signed by the WSDOT and Spokane County and is pending signatures from the City of Spokane, STA, and SRTC in November. Staff will be coming to City Council with a Motion Consideration on November 8, 2016. OPTIONS: Discussion. RECOMMENDED ACTION OR MOTION: Discussion. BUDGET/FINANCIAL IMPACTS: No change to 2016 budget. STAFF CONTACT: Sean Messner, Senior Traffic Engineer Eric Guth, Public Works Director ATTACHMENTS: SRTMC Interlocal Agreement, 2017 SRTMC Workplan, 2017 SRTMC Budget Spokane Regional Transportation Management Center B4 114 ra4 rak41124 0 •4 174 .4 — rm FIN4 II Frn ,,,loffte Peak .1.,eptation A. ea ii" -4 am. . UP ON [N. 1114 - .,.fl_. am" n''' La)erty Lak • IP.. al.'OhLy . 47' 10 04 24 - ,(1-..•e, I. inc. F 444. 111.P. moo I.44 4.P 1=1404..114. mem Ems mow awe Wor mow 16111P AWN" If 16 4 1 November 1, 2016 Sean Messner, PE Backgrourd Summary ❖ Planning for SRTMC began in 1998 ❖ Gave way to an interlocal between City of Spokane, STA, W S D OT, SRTC ❖ Became fully operational in 2003 ❖ Funded by combination of federal grants, WSDOT directed funds, and member contributions ❖ Member yearly contributions = $15,000 ❖ Operations Board + Technical members from partner agencies •'• Executive Board + Executives from partner agencies 2 What is the SRTMC? ❖ Transportation Management Center — Operates 24/7/365 ❖ 1,626 SF office space ••• 7 operators and 1 supervisor, split into shifts ❖ Monitor cameras, radios, alerts ••• Coordinate with 1st responders at incidents ❖ Coordinate and facilitate even operations ❖ Display messages to the motoring public during events ❖ 1 SRTMC Manager, 1 IT Manager, 1 IT Specialist ❖ Manage SRTMC and ITS devices ❖ Manage health of ITS network, hardware, software 3 Vision and Mission of SRTMC •'• Vision Statement Aspire to facilitate for the safe and predictable movement of people and goods throughout Spokane County. ❖ Mission Statement The SRTMC is a team of professionals working 24/7 with multiple jurisdictions to deliver reliable transportation information services, locally and regionally, in order to create a safe and efficient travel experience for everyone. 4 Purpos. of SRTMC ❖ Help with the safe and predictable movement of people and goods throughout Spokane County. ❖ Provide traveler information and traffic management services to our transportation system to allow a seamless multi -modal commute across jurisdictional boundaries. ❖ Regional focal point for ITS architecture planning, development, and implementation. 5 What happens at the SRTMC • SRTMC staff currently ❖ Monitors radios, cameras, maintenance activities, and coordinate with emergency services •••• Populates and monitors the SRTMC website, 511, and email/text alerts ❖ Coordinates with maintenance and operations staff of jurisdictions ❖ Coordinates messages for special events on Variable Message Signs and Highway Advisory Radio ❖ Coordinates with jurisdictions for construction activities and detours -ages. VIM #-- - !Mr w rdair 8 How does our system tie in with the SRTMC? •:• The City has a robust ITS network • 45 traffic signals • 12 cameras • 1 DMS •• The connection to the SRTMC is through the regional system • SRTMC has limited access to our system for monitoring purposes •• We have a connection to the SRTMC, but do not rely on the SRTMC for operation or monitoring of devices • Changed this as of this year (2015-2016) 9 Why is the SRTMC important? ❖ Area wide coverage to monitor and respond to incidents that worsen congestion ❖ Focus incident management coordination into a central location •• Event support ❖ Supply and provide information to the traveling public ❖ The SRTMC uses fiber optic networks to ❖ Reduce the need for new travel lanes •'• Reduce congestion and emissions ❖ Manage transportation across agency lines 10 SRTMC website • Map I SRTMc fl*4 CNN.4 im • 0114 ..5, WI (1114 InV ,-- A r1 Fl a _.1 • mit, -,- - \ - •-- , ' G.4 Emi ad ,,,em'• —gupirmaall4 elm (111-111104 44 r 01 al "a FitftF...---- Liberty "hi rim rai coo Ell IN all (.4 4.4 Lake M4-1 [WW1 d -4 laite4,0I1prand&.. ClallierVatiDri Flats Lin k'',7J, MIA r Aro,' b•R y Fd I 11 ■ ■ • SRTMC value — device activation •'• Green: <3 minutes; Yellow: 4-5 minutes; Red: >5 minutes •'• Incidents: average — 37; maximum — 50; minimum — 27 MARCH • ITS Device activation time over 5 minutes • ITS Device activation time ,,tto 5 minutes • ITS Device activation time 3minutes or less r 50 20 APRIL • ITS Device activation time over 5 minutes • ITS Device activation time 4.to 5 minutes • ITS Device activation time 3 minutes or less MAY • ITS Device activation time over 5 minutes NITS Device activation time 4.to 5 minutes N ITS Device activation time 3 minutes or less JUNE N ITS Device activation time over 5 minutes ITS Device activation time 4.to 5 minutes • ITS Device activation time 3 minutes or les JULY • ITS Device activation time over 5 minutes ITS Device activation time 4.to 5 minutes • ITS Device activation time 3 minutes or less is AUGUST ■ . ,3 Device activation eme over s minutes ITS Device activation time 4.to 5 minutes N ITS Device activationeme 3masees or less Ii 12 SRTMC value — alerts to drivers •'• Green: <5 minutes; Yellow: 6-7 minutes; Red: >7 minutes •'• Incidents: average — 70; maximum — 98; minimum — 30* OD MARCH • Time to send alert over 7 minutes Time to send alert Gt o 7 minutes • Time to send alert 5 minutes or less 17 • • • • • • • • • • OD 90 APRIL N ine to se. alert over 7 minutes ▪ Time to send alert Gt o 7 minutes • Time to send alert 5 minutes or less 70 GO 50 60 30 20 MAY • Time to send alert over 7 minutes ATime to send alert G to 7 minutes • Time to send alert 5 minutes or less iz ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ OD 95 90 BS BO JUNE • Time to send alert over 7 minutes Time to send alert Gt o 7 minutes • Time to send alert 5 minutes or less ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 60 30 20 10 JULY •Time to send alert over 7 minutes Time to send alert G to 7 minutes 1•0me to send alert 5 minutes or less is ■ ■ ■ ■•z o ■ a o ■ o ■ ■•e o ■ s o ■ ao ■ ■ 0 ■ ■ ■ ■ 20 10 AUGUST • Time to send alert over 7 minutes Time to send alert G to 7 minutes • Time to send alert 5 minutes or less 13 ••• • Who uses th Residents and businesses use ❖ The SRTMC website ••• Facilities that have ITS devices ❖ Both local and regional eSRT 1C? 1. ■ Spokane All user Mobile and Tablet Traffic 2_ MI Seattle All Users Mobile and Tablet Traffic 3. • Spokane Valley All users Mobile and Tablet Traffic 582 177 152 117 116 32 45.369E 47.07% 11.859E 31.129E 9.1749E 8.51% ❖ Over 325,000 people a day use1-90, SR 2, SR 290, SR 291 SR 27, SR 395, & SR 195 ❖ Over 58,000 use Trent & Pines every day! 14 ❖ Data shows that residents and businesses in the City use SRTMC website ❖ Traffic volumes show residents use facilities where the SRTMC operates ❖ Value to City residents and businesses using regional roadways •• Quicker responses to incidents •• Better incident management ❖ Less delays, less congestion, quicker travel time for people and goods •• Shows regional partnership for future CIP grants How does the SRTMC support the City? 15 What does the SRTMC cost the City? 2015 = $0 •• 2016 = $0 •• 2017 = (SRTMC pays signal software fee of $10,000) •• 2018 =annual dues are $15,000 • City net cost = $5,000 (SRTMC pays signal software fee of $10,000) • Total Foreseeable future yearly cost to City = $5,000 unless work plan/budget change •• City staff will immediately notify Council of any budget changes 16 If the City oats out rf the SRTMC? ❖ Could be less incident response on SR 290 & SR 27 •'• During an incident on Trent or Pines ❖ It will add delay and cost to businesses for transportation of goods ❖ It will add delay and cost to residents ❖ Could take longer to travel to/from City and regional places ❖ City will continue to pay traffic signal software fees $10,000 ❖ Could impact future regional grant applications for funding ❖ CMAQ, STP, HSIP, TIB, TIGER, FASTLANE •'• Will not change our traffic signal operations: we monitor and access traffic signals on our ITS system 17 ••• The SRTMC provides localized and regional benefit ••• To both businesses and residents in the City ❖ The City's net annual cost is $5,000 per year ❖ The SRTMC does not impact our traffic signal system ❖ Future SRTMC operations may allow for pre -approved incident management operations ❖ The interlocal agreement has an opt -out clause + August 1st of every year — we may opt out at any time ❖ Being a regional partner will assist in future grant opportunities ❖ It has already given benefit to us on CMAQ and TIB grants ❖ Staff recommends continuing to be a part of the SRTMC 18 INTERLOCAL AGREEMENT REGARDING THE CREATION, OPERATIONS AND MANAGEMENT OF THE SPOKANE REGIONAL TRANSPORTATION MANAGEMENT CENTER WSDOT NO. GCB 2457 This Interlocal Agreement (Agreement) is made and entered into among the Washington State Department of Transportation (WSDOT); Spokane County, Washington; the City of Spokane, Washington (COS); the Spokane Transit Authority (STA); the City of Spokane Valley, Washington (COSV); and the Spokane Regional Transportation Council (SRTC), collectively referred to as the Members and individually referred to as a Member, for the purposes of formalizing the creation, operations and management of the Spokane Regional Transportation Management Center (SRTMC). RECITALS A. Pursuant to the provisions of chapter 39.34 RCW, two or more public entities may jointly cooperate with one another to perform functions that each may individually perform. B. The SRTC is the federally designated Metropolitan Planning Organization and the State designated Regional Transportation Planning Organization for Spokane County that plays a critical role in the regional transportation planning process. C. The Members, other than the SRTC, operate transportation facilities in the Spokane region that are necessarily interwoven and interdependent. The interest of the traveling public will best be served by coordinating the Members' transportation systems as a whole. D. The Members have been operating and maintaining the Spokane Regional Transportation Management Center (SRTMC) pursuant to WSDOT contract number GCA 1450, dated October 1, 1998, as amended by Amendment No. 1, with an effective date of April 30, 2015, and Amendment No. 2, with an effective date of December 22, 2015 (collectively referred to as GCA 1450). E. The SRTMC is a regional transportation management system that provides traveler information and traffic management services on the Spokane regional transportation system to allow a seamless multi -modal commute across the jurisdictional boundaries of the participating Members, F. The SRTMC also allows the Members to individually or collectively pursue federal and state funding for the regional transportation system, including but not limited to the funding of the SRTMC itself. G. The Members desire to continue to operate and maintain the SRTMC under this Agreement, which will replace and supersede GCA 1450. NOW, THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein, IT IS MUTUALLY AGREED AS FOLLOWS: SRTMC Interiocal Page 1 of 12 AGREEMENT Section 1: Purpose; SRTMC Regional Area 1.1 Purpose. The purpose of this Agreement is to create and establish the framework to manage and operate the SRTMC to: 1.1.1 Continue the coordinated system management of transportation facilities of Spokane County, COS, COSV, WSDOT and STA; 1,1.2 Establish a transportation management center for the Spokane County area that complies with applicable federal and state transportation legislation; 1.1.3 Facilitate the storage and distribution of regional traffic data amongst the Members; and 1.1.4 Facilitate the solicitation of funding for the SRTMC. 1.2 SRTMC Regional Area 1.2.1 The regional area covered by this Agreement shall consist of all incorporated and unincorporated areas of Spokane County, Washington and may include contiguous areas across the county or state of Washington (State) boundaries, as deemed appropriate by the Operating Board, and which meet the criteria of State and/or federal transportation legislation (Regional Area). 1.2.2 WSDOT may further utilize the SRTMC for traffic operations management through the entire WSDOT Eastern Region and may coordinate with other transportation management centers that may have operational areas extending outside the Regional Area. This work shall be funded solely by WSDOT and not through use of Member funds or grants associated with the SRTMC. Section 2: Term, Termination, Withdrawal 2.1 Terni. The duration of this Agreement shall be indefinite, subject to termination as provided elsewhere herein. 2.2 Termination. This Agreement may be terminated in whole or in part by written agreement executed by the then existing Members. If the Agreement is so terminated, the Members shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. 2.3 Member Withdrawal. Any Member may withdraw from this Agreement by giving written notice to the Operating Board Chair prior to August 1st of any year. The withdrawal shall be effective January Is' of the subsequent year. If a Member so withdraws, the withdrawing SRTMC Interlocal Page 2 of 12 Member shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of withdrawal. Section 3: Organization 3.1 Voluntary Association. The Members intend with this Agreement to create a voluntary association known as SRTMC amongst themselves that will be governed by a joint board comprised of professional representatives from each Member. 3.2 SRTMC Operating Board. 3.2.1 The Members hereby create the SRTMC Operating Board (Operating Board) that will govern the operations of the SRTMC as provided herein. 3.2.2 It is the intent of the Members in creating the Operating Board to meet the prerequisites of federal transportation legislation requiring the development of an integrated congestion management system to manage existing traffic congestion and help to prevent new congestion from occurring. As such, the Operating Board shall direct the functions of the transportation management center for the Regional Area, including but not limited to, those functions set forth in applicable federal transportation legislation. 3.2.3 Each Member shall appoint a professional representative to the Operating Board who holds a position within its organization that has authority to make decisions related to transportation operations for their respective agency/jurisdiction. 3.2.4 Alternate Operating Board representatives may serve in the absence of the designated representative so long as the alternate representative has similar authority to act on behalf of the appointing Member's parent agency. 3.2.5 The Operating Board shall adopt rules regarding the election of officers that shall include, at a minimum, a chair and vice -chair. 3.2.6 The SRTC board member shall serve in an ex officio, non-voting Member capacity. All other Members shall be voting Members. 3.3 SRTMC Executive Board. 3.3.1 The Members hereby create the SRTMC Executive Board (Executive Board) that will govern the Operating Board of the SRTMC as provided herein. 3.3.2 It is the intent of the Members in creating the Executive Board to provide oversight of the Operating Board and their duties and provide approvals of the annual budget and work plan. SRTMC Interlocal Page 3 of 12 3.3.3 Each Member shall appoint a representative to the Executive Board who holds a position within its organization that has signing authority to approve decisions on behalf of each Member agency. 3.3.4 Alternate Executive Board representatives may serve in the absence of the designated representative so long as the alternate representative has similar signing authority to act on behalf of the appointing Member agency. 3.4 Limitations. The Operating Board is not authorized, in any way, to supersede the legal authority vested in the SRTC, Spokane County, COS, COSV, WSDOT, STA, or any future entity that becomes a Member to this Agreement. 3.5 Adding new members to the Operating Board. The Operating Board with concurrence from the Executive Board may add Members to SRTMC by at least a 75% vote. Upon receiving at least a 75% vote, the new Members shall enter into this Agreement. Section 4: Operating Board Powers and Functions The functions, responsibilities, and powers of Operating Board shall be as follows: 4.1 Meetings 4.1.1 The Operating Board shall hold regular meetings. The chair of the Operating Board may call special meetings or executive sessions or shall call a special meeting at the request of a majority of the Operating Board. 4.1.2 The Operating Board shall adopt rules for the conduct of its business consistent with this Agreement and such rules shall prescribe, among other matters, the place of meetings, the methods of providing reasonable notice to Members thereof, and what constitutes a quorum for the purpose of transacting business. Such rules shall be adopted and may be amended by ratification of at least 75% of the then total number of voting Members of the Operating Board or by amendment to this Agreement as provided elsewhere herein. 4.1.3 All meetings of the Operating Board shall be open to the public as required by chapter 42.30 RCW. 4.2 The Operating Board shall direct the functions of the transportation management center for the Regional Area that are required to comply with applicable federal and state transportation legislation. 4.3 The Operating Board shall oversee the preparation and updating of the regional intelligent transportation plans, including but not limited to, the Regional Transportation Incident Management Program, and the Regional Intelligent Transportation System Architecture Plan. SRTMC Interlocal Page 4 of 12 4.4 The Operating Board shall administer approved regional transportation projects and programs that facilitate operations of the SRTMC. 4.5 The Operating Board shall direct such other transportation systems management related function as the Operating Board may hereinafter determine to be in the best interest of the SRTMC. 4.6 Funding 4.6.1 The Operating Board may utilize funding from federal and state governmental grants-in-aid and donations in accordance with the terms and conditions of such funding and to the extent such funds further the regional transportation management systems. 4.6.2 The Operating Board shall consider and approve, as appropriate, applications for or acceptance of any grants to carry out those functions of the SRTMC. 4.6.3 The SRTMC shall be funded by Grants except for those operations which occur outside the Regional Area. These operations shall be funded wholly by WSDOT. In the event grants are not available or obtained, Members shall have a choice of determining a funding solution at that time or opting out of the Agreement. 4.6.4 Each voting Member will pay dues in the sum of up to $15,000 per year. The dues for voting Members may be modified by at least a 75% vote of the Executive Board. 4.7 Work Plan and Annual Budget 4.7.1 The Operating Board, in conjunction with the SRTMC Manager, will develop detailed work and financial plans/budget with measurable milestones for the operation and maintenance of the SRTMC. 4.7.2 The Operating Board shall recommend approval of the work plan and budget for approval by the Executive Board by November 1 of the preceding year. 4.7.3 The Operating Board may amend the SRTMC work program and financial plans/budget by a majority vote, provided such an amendment is approved by the Executive Board and is within the funding authorized for use of the SRTMC. 4.8 The Operating Board shall authorize payment of costs incurred by a Member for authorized SRTMC activities. 4.9 The Operating Board may contract for legal counsel for the SRTMC and the Operating Board, as needed. Section 5: Executive Board Powers and Functions The fu nctions, responsibilities, and powers of the Executive Board shall be as follows: SRTMC Interlocal Page 5 of 12 5.1 The Executive Board shall hold regular meetings. The chair of the Operating Board may call special meetings or executive sessions or shall call a special meeting at the request of a majority of the Executive Board. 5.2 All meetings of the Executive Board shall be open to the public as required by chapter 42.30 RCW. 5.3 The Executive Board shall oversee the functions of the Operating Board. 5.4 The Executive Board shall approve any Member dues that the Operating Board recommends. 5.5 The Executive Board will evaluate the perforrnance of the Operating Board and the SRTMC Manager against the work plan, budget and measurable milestones. Section 6: SRTMC Staffine and Operations 6.1 Staff necessary to perform the SRTMC work, as identified in the approved work plans and as consistent with this Agreement, shall be Member employees as designated by the respective Member. Member employees assigned to the SRTMC staff shall be hired and discharged by their respective Member. In addition, insurance will be provided for employees by their respective Member. 6.2 The SRTMC manager shall serve under the general guidance of the Operating Board and shall be responsible for conducting activities necessary to carry out the work program as approved by the Operating Board. 6.3 The Operating Board shall have input to the SRTMC Manager's evaluation. If the Operating Board is not satisfied with the performance of the SRTMC Manager, they may direct a letter of concern to the Member that employs the SRTMC Manager. That Member shall have 90 days to resolve the Operating Board's concerns. If after 90 days the concerns are not resolved, the concerns shall be raised to the SRTMC Executive Board for resolution. The perforrnance issue shall be included in the SRTMC Manager's evaluation, but the 90 day resolution period will not delay evaluation closeout. 6.4 SRTMC staff performing work within the Regional Area shall be funded in accordance with the budget adopted by the SRTMC. SRTMC staff that also performs work duties for WSDOT outside the Regional Area shall be funded solely by WSDOT. 6.5 WSDOT is hereby authorized to make expenditures in accordance with the approved SRTMC budget and work plan as approved by the SRTMC Operating Board. WSDOT shall maintain records of expenditures, and shall report regularly to the Operating Board on budget activity. SRTMC Interlocal Page 6 of 12 Section 7: Treatment of Assets 7.1 Title to all property furnished by a Member shall remain with that Member, unless otherwise agreed to in writing. 7,2 All property that Members have installed in the field shall remain the property of that Member. 7.3 In the event the Members determine to disband SRTMC, all property that has been installed at the SRTMC niay be transferred to the entity that continues to operate the SRTMC for the region. If no entity continues to operate the SRTMC for the region, all property that has been installed at the SRTMC shall be divided equally amongst the Members that have paid for equipment installation. Section 8: Maintenance of Records 8.1 The Members to this Agreement shall each maintain books, records, documents and other evidence that sufficiently and properly reflect all direct and indirect costs expended by each Member in the performance of the service(s) described herein. These records shall be subject to inspection, review or audit by personnel of each Member, other personnel duty authorized by each Member, the Office of the State Auditor, and federal officials so authorized by law. All books, records, documents, and other material relevant to this Agreement shall be retained for six years after expiration of Agreement. The Office of the State Auditor, federal auditors, and any persons duly authorized by the Members shall have full access and the right to examine any of these materials during this period. 8.2 If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained for either one (1) year following the termination of litigation, including all appeals, or six (6) years from the date of expiration or termination of this Agreement, whichever is later. 8.3 Records and other documents, in any medium, furnished by one Member to this Agreement to another Member, will remain the property of the furnishing Member, unless otherwise agreed. The receiving Member shall not disclose or make available any confidential information to any third party without first giving notice to the furnishing Member and giving it a reasonable opportunity to respond. Each Member shall utilize reasonable security procedures and protections to assure that records and documents provided by the other Member are not erroneously disclosed to third parties. However, the Members acknowledge that the Members are subject to chapter 42.56 RCW, the Public Records Act. Section 9: Leal Relations 9.1 Individually, each Member shall protect, defend, indemnify, and save harmless each other Member, its officers, officials, employees, and agents from any and all costs, claims, judgment, and/or awards of damages resulting from the negligent acts or omissions of its SRTMC Interlocal Page 7 of 12 officers, officials, employees, and agents acting within the scope of their employment and arising out of or in connection with the performance of this Agreement. 9.2 In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of more than one Member, their officers, officials, employees, and agents, an individual Member's liability hereunder shall be only to the extent of that Member's negligence. 9.3 It is further specifically and expressly understood that the indemnification provided herein constitutes a Member's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purpose of this indemnification provision. This limited waiver has been mutually negotiated by the Members. The provisions of this section shall survive the expiration or termination of this Agreement. Section 10: General 10.1 Recitals, Exhibits and Attachments. The recitals of this Agreement are hereby incorporated into this Agreement. All exhibits, attachments, and documents referenced in this Agreement are hereby incorporated into this Agreement. 10.2 Independent Capacity. The employees or agents of each Member who are engaged in the performance of this Agreement shall continue to be employees or agents of the Member and shall not be considered for any purpose to be employees or agents of the other Member. 10.3 Assignment. Neither this Agreement, nor any rights created by it, may be assigned or transferred. 10,4 Assurances. The Members agree that all activity pursuant to this Agreement shall be in accordance with all applicable federal, state and local laws, rules, and regulations as they currently exist or as amended. 10.5 Interpretation. This Agreement shall be interpreted in accordance with the laws of the state of Washington. The titles to paragraphs and sections of this Agreement are for convenience only and shall have no effect on the construction or interpretation of any part hereof. 10.6 Amendments. This Agreement may be amended by the mutual written agreement of the Members executed by personnel authorized to bind each of the Members. 10.7 Waiver. A failure by any Member to exercise its rights under this Agreement shall not preclude that Member from subsequent exercise of such rights and shall not constitute a waiver of any other rights under this Agreement unless stated to be such in writing signed by an authorized representative of the Member and attached to the original Agreement. 10.8 All Writings Contained Herein. This Agreement contains all the terms and conditions agreed upon by the Members. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the Members. SRTMC Interlocal Page 8 of 12 10.9 Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. Venue of any action brought under this Agreement shall be in Superior Court for Spokane County. 10.10 Severability. If any term or condition of this Agreement is held invalid, such invalidity shall not affect the validity of the other terms or conditions of this Agreement. 10.11 Nondiscrimination. No individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement because of age, sex, race, color, religion, creed, marital status, familial status, sexual orientation including gender expression or gender identity, national origin, honorably discharged veteran or military status, the presence of any sensory, mental or physical disability, or use of a service animal by a person with disabilities. The Members agree to comply with, and to require that all subcontractors comply with, federal, state and local nondiscrimination laws, including but not limited to: the Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Age Discrimination in Employment Act, and the American's With Disabilities Act, to the extent those laws are applicable to the subject matter of this Agreement 10.12 Anti -kickback. No officer or employee of the Members, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in the Agreement, or have solicited, accepted or• granted a present or future gift, favor, service or other thing of value from or to any person involved in this Agreement. Section 11: Contract Execution 11.1 Authority to Bind. The signatories to this Agreement represent that they have the authority to bind their respective organizations to this Agreement. 11.2 Counterparts. This Agreement may be executed in counterparts or in duplicate originals. Each counterpart or each duplicate shall be deemed an original copy of this Agreement signed by each Member, for all purposes. Section 12: RCW 39.34 Required Clauses 12.1 Purpose: See Section 1,1 of this Agreement. 12.2 Duration: See Section 2.1 of this Agreement. 12.3 Separate Legal Entity: See Sections 3.1 and 10.2 of this Agreement. 12.4 Responsibilities of the Parties: See Sections 3 — 6 of this Agreement. 12.5 Agreement to be Filed: The Members shall each file this Agreement with their respective clerks and/or place it on its web site or another electronically retrievable public source, provided this Agreement shall be immediately effective upon the filing and publication SRTMC Interlocal Page 9 of 12 by any one Member• and the failure of any Member to comply with this requirement shall not invalidate this Agreement. 12.6 Financing: Each Member shall be responsible for the financing of its contractual obligations under its normal budgetary process, and in accordance with Sections 4.6 and 4.7 of this Agreement. 12.7 Termination: See Section 2.2 of this Agreement. 12.8 Disposal of Property Upon Termination: See Section 7.3 of this Agreement. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK SRTMC Interlocal Page 10 of 12 IN WITNESS WHEREOF, the Members have executed this Agreement as of the date last signed below. This Agreement may be executed in counterparts. STATE OF WASHINGTON DEPARTMENT OF TRANSPORTATION APPROVED AS TO FORM By: By: Michael R. Gribner, P.E. Acting Regional Administrator, Eastern Region Patricia Nightingale Assistant Attorney General SPOKANE COUNTY, BOARD OF COUNTY COMMISSIONERS ADOPTED this day of , 2016 ATTEST: Shelly O'Quinn, Chair By: Clerk of the Board Al French, Vice -Chair Date: Nancy McLaughlin, Commissioner CITY OF SPOKANE ATTEST: By: By: Date: City CIerk Date: APPROVED AS TO FORM Office of the City Attorney CITY OF SPOKANE VALLEY ATTEST: By: By: Date: City Clerk Date: APPROVED AS TO FORM Office of the City Attorney SRTMC Interlocal Page 11 of 12 SPOKANE TRANSIT AUTHORITY ATTEST: By: By: Date: Clerk of the Authority Date: APPROVED AS TO FORM STA Legal Counsel SPOKANE REGIONAL TRANSPORTATION COUNCIL ATTEST: By: By: Date: Date: APPROVED AS TO FORM SRTC Legal Counsel SRTMC Interlocal Page 12 of 12 SPOKANE REGIONAL TRANSPORTATION MANAGEMENT CENTER WORK PLAN 2017 Otaw.:Fisliir SOW., • SPOKANERE IOMAL MC Itt A MI TRANSPORTATION MANAGEMENT CENTER Prepared by: Spokane Regional Transportation Management Center Operations Board 221 West First Avenue Suite 310 Spokane, WA 99201 VISION Aspire to facilitate for the safe and predictable movement of people and goods throughout Spokane County. MISSION The Spokane Regional Transportation Management Center (SRTMC) is a team of professionals working 24/7 with multiple jurisdictions to deliver reliable transportation information services, locally and regionally, in order to create a safe and efficient travel experience for everyone. PURPOSE -SRTMC The Spokane Regional Transportation Management Center (SRTMC) is an organization that was created to help with the safe and predictable movement of people and goods throughout Spokane County, In addition, monitoring of Washington State Department of Transportation (WSDOT) Eastern Region facilities outside of Spokane County occurs through the SRTMC. The SRTMC's main purpose is to provide traveler information and traffic management services on our transportation system to allow a seamless multi -modal commute across jurisdictional boundaries. This is accomplished through the use of intelligent transportation system (ITS) devices, the SRTMC website, twitter, Facebook, 511, and roving incident response trucks (IRT). The SRTMC is also the regional focal point for ITS architecture planning, development, and implementation. Having a single organization leading this effort allows the region to better manage current capacity and to give multiple jurisdictions one voice when it comes to pursuing limited funding. -SRTMC Operations Board The SRTMC Operations Board is a voluntary association and joint Board comprised of professional representatives from the City of Spokane (COS), City of Spokane Valley (COSV), Spokane County, Spokane Transit Authority (STA) and WSDOT, with Spokane Regional Transportation Council (SRTC) as an ex -officio member. The Operating Board's main purpose is to oversee the management and operation of transportation facilities within Spokane County for mutual public benefit. This is accomplished through coordination of transportation system operations between partnering agencies in an effort to optimize regional resources. Monthly meetings of the SRTMC Operating Board and regular updates to the ITS Implementation Plan support these efforts. This coordination helps to ensure the optimal use of limited local, state and federal resources. Coordination at the state level also occurs with adjacent jurisdictions such as the Idaho Transportation Department and other Washington State TMCs. PARTICIPANTS The primary public agency participants in the Spokane Regional Transportation Management Center include: Agency SRTMC Operations Board Representative SRTMC Operations Board Alternate City of Spokane Andy Schenk Ken Knutson City of Spokane Valley Sean Messner Ryan Kipp Spokane County Nathan Thompson Barry Greene Spokane Regional Transportation Council Eve Nelson Kevin Wallace Spokane Transit Authority Fred Nelson Kathleen Weinand WSDOT Glenn Wagemann Robert Biegen Roles and Responsibilities SRTMC Operations Board The SRTMC Operations Board is a voluntary association and joint board consisting of one representative and an alternate from each of the member agencies. Monthly meetings are held to direct the business of the SRTMC. Core functions of this Board include: • Determine and oversee the duties of the SRTMC Manager. ▪ Elect Chair and Vice Chair whose duties include: o Schedule, set agendas for, and conduct monthly meetings • Work with SRTMC Manager to develop, review, and approve the Work Plan • Coordinate regional transportation projects and programs that facilitate operations of the SRTMC. Perform such other transportation systems management related functions as the SRTMC Operations Board determines to be in the best interests of the region. SRTMC Manager The SRTMC Manager is responsible to carry out the direction provided by the SRTMC Operations Board and to maintain functional operation of the SRTMC. The core functions of this position are: • Develop and direct the implementation of the SRTMC work plan. • SRTMC staff management • Prepare and apply the ITS Implementation Nan ■ Consultant Management • SRTMC communication liaison ■ Attend SRTMC Operations Board meetings • Attend other meetings at the request of the SRTMC Board, • Research and explain technical and operational issues to the SRTMC Board. 2016 ACCOMPLISHMENTS 2016 was a very productive year for the SRTMC and its Operations Board. The majority of the major objectives that were planned for the year were accomplished. The accomplishments include: • Launched the new SRTMC website. • Completed all advanced traffic management system (ATMS) systems engineering, request for proposal (RFP) development, and entered into a contract with Parsons for the procurement and implementation of the new system. Created a new Interlocal Agreement to allow long term success of the SRTMC. • Created performance measures for the 2016 work plan. Reported on the measures to the SRTMC Executive Board. • COSV completed and stood up their Traffic Operations Center. • SRTC successfully moved into their new space and SRTMC is successfully standing on its own. One major objective that was not accomplished was the implementation of the new ATMS that was projected to be completed by November 2016. There ended up being delays due to the complexity of getting all of the 380 technical requirements captured appropriately in the RFP. We did an unplanned request for information (RFI) from the vendor community to ensure that our requirements were reasonable and deliverable. Once the RFP went to bid, the vendor community asked for extra time to respond due to the complex nature of the bid. We are currently under contract and are scheduled to have the new system implemented by July 2017. There are several ongoing processes that include regional operations of the ITS system, ITS architecture planning, creating and implementing standard operating procedures for incidents, incident management planning, improving traveler information, relationship building/outreach, and data warehouse management. These items are continuous and part of the day to day operations of the SRTMC. 2017 PRIORITIES AND OBJECTIVES 2017 will be another busy year for the SRTMC and its Operations Board. A major undertaking will be the implementation of the ATMS. The completion of this task will allow several other items to be decided on and then implemented. Determining hardware and software requirements for transit, arterial, bike, and pedestrian data gathering can take place after the ATMS work is completed. A fully functional ATMS will also allow the center to center communications that are necessary to support COS and COSV traffic signal operations. Once the technology decisions have been made and implemented, the SRTMC and its Operations Board will be able to more clearly define performance measures for the next priority objective of Regional Data Warehousing. There are still certain aspects of the IT connection between SRTC and SRTMC that need to be separated to ensure the systems are independent of each other. 1. Intelligent Transportation System (ITS) architecture implementation Facilitate implementation of the Spokane Regional ITS Plan by providing a forum for ITS collaboration, coordinating agreements between agencies, and procuring systems for regional ITS and signal management. Update the plan as necessary. -Implement the new regional ATMS system -Update ITS architecture plan after ATMS install -Create new Arena media feed agreement 2. Regional data warehousing Assist local and regional decision making by compiling, storing, and disseminating current and historical member jurisdictions' highway, arterial, bicycle, and pedestrian data. -Determine hardware/software requirements for arterial and highway data gathering -Determine hardware/software requirements for bike and pedestrian data gathering -Initiate framework to develop policies for collecting, storing, and disseminating data 3. Coordinated incident management Identify and remediate incidents which impact transportation by utilizing ITS devices and CAD, communicating with first responders and incident response crews, and disseminating public information. -Reduce delay/congestion by use of ITS devices -Display incident/construction/maintenance information to the traveling public -Complete SRTMC video connection to STA's fixed route dispatch center 4. ITS Infrastructure support Support regional ITS operations by assisting partner agencies with installation, maintenance, and troubleshooting of ITS devices and communication infrastructure. -Assist joint venture agencies with setup of new ITS systems -Assist joint venture agencies with troubleshooting ITS networks 5. Financial stewardship Operate efficiently and cost effectively by carefully controlling operational, administrative, and capital expenditures. Plan for future funding requirements. -Build manageable spend plans for each federal grant and WSDOT Traffic Operations funds -Generate monthly reports to show grant expenditures -Generate long term cost estimates for SRTMC maintenance and operations PERFORMANCE MEASURES 1. Intelligent Transportation System (ITS) architecture implementation Facilitate implementation of the Spokane Regional ITS Plan by providing a forum for ITS collaboration, coordinating agreements between agencies, and procuring systems for regional ITS and signal management. Update the plan as necessary. -Implement the new regional ATMS system PERFORMANCE MEASURE Implement and make the new ATMS system fully functional GOAL. Complete by end of July 2017 REQUIRED STAFF Operations Board members, SRTMC Manager, SRTMC IT Manager, Consultant MEASURED Annual (end of year) -Update ITS architecture plan after ATMS install PERFORMANCE MEASURE Update ITS architecture plan after ATMS install GOAL Start update by end of 2017 (actual date TBD when ATMS install is complete) REQUIRED STAFF Operations Board members, SRTMC Manager MEASURED Annual (end of year) -Create new Arena media feed agreement PERFORMANCE MEASURE Complete new Arena media feed agreement GOAL Complete by end of 2017 REQUIRED STAFF Operations Board members and legal staff, SRTMC Manager, Arena staff, WSDOT AG office MEASURED Annual (end of year) 2. Regional data warehousing Assist focal and regional decision making by compiling, storing, and disseminating current and historical member jurisdictions' highway, arterial, bicycle, and pedestrian data. -Determine hardware/software requirements for arterial and highway data gathering PERFORMANCE MEASURE Determine hardware/software requirements for arterial data gathering based on outcome of ATMS implementation GOAL Complete by end of 2017 REQUIRED STAFF Operations Board members, SRTMC Manager, Joint Venture Agencies staff, SRTMC IT Manager MEASURED Annual (end of year) -Determine hardware/software requirements for bike and pedestrian data gathering PERFORMANCE MEASURE Determine hardware/software requirements for bike/pedestrian data gathering based on outcome of ATMS implementation GOAL Complete by end of 2017 REQUIRED STAFF Operations Board members, SRTMC Manager, Joint Venture Agencies staff, SRTMC IT Manager MEASURED Annual (end of year) - Initiate framework to develop policies for collecting, storing, and disseminating data PERFORMANCE MEASURE Creation of framework for policies and procedures for collecting, storing, and disseminating data at the SRTMC GOAL Complete by end of 2017 REQUIRED STAFF Operations Board members, SRTMC Manager, Joint Venture Agencies staff, SRTMC IT Manager MEASURED Annual (end of year) 3. Coordinated incident management Identify and remediate incidents which impact transportation by utilizing ITS devices and CAD, communicating with first responders and incident response crews, and disseminating public information. -Reduce delay/congestion by use of ITS devices PERFORMANCE MEASURE Time it takes to respond to unplanned incidents with ITS devices GOAL Respond to unplanned impacting events within 3 minutes REQUIRED STAFF Operations Board members, SRTMC Manager, SRTMC staff, SRTMC IT Manager, field units MEASURED Time for operators to respond from verification to ITS device activation. Measured and reported on quarterly basis -Display incident/construction/maintenance information to the traveling public PERFORMANCE MEASURE Time it takes to respond to unplanned incidents with 511, Facebook, twitter, websites, email/text alerts GOAL Respond to unplanned impacting events within 5 minutes REQUIRED STAFF Operations Board members, SRTMC Manager, SRTMC staff, SRTMC IT Manager, field units MEASURED Time for operators to respond from verification to traveler information posting. Measured and reported on quarterly bask - Complete SRTMC video connection to STA's fixed route dispatch center PERFORMANCE MEASURE Complete connection between SRTMC and STA's fixed route dispatch center GOAL Complete connections and verify operational capability by end of 2017 REQUIRED STAFF SRTMC Manager, SRTMC IT Manager, STA staff MEASURED Annual (end of year) 4. ITS Infrastructure support Support regional ITS operations by assisting partner agencies with installation, maintenance, and troubleshooting of ITS devices and communication infrastructure. -Assist joint venture agencies with setup of new ITS systems PERFORMANCE MEASURE Joint venture agency staff are satisfied with SRTMC Manager/SRTMC IT Manager response GOAL SRTMC Manager or SRTMC IT Manager respond to support requests within 24 hours REQUIRED STAFF SRTMC Manager, Joint Venture Agencies staff, SRTMC IT Manager MEASURED Satisfaction survey semi-annually -Assist joint venture agencies with troubleshooting ITS networks PERFORMANCE MEASURE Joint venture agency staff are satisfied with SRTMC IT Manager response GOAL SRTMC IT Manager respond to support/troubleshooting requests within 2 hours REQUIRED STAFF SRTMC Manager, Joint Venture Agencies staff, SRTMC IT Manager MEASURED Satisfaction survey semi-annually 5. Financial stewardship Operate efficiently and cost effectively by carefully controlling operational, administrative, and capital expenditures. Plan for future funding requirements. -Build manageable spend plans for each federal grant and WSDOT Traffic Operations funds PERFORMANCE MEASURE Complete work plan and spend plans by August of the calendar year GOAL Complete by August of the calendar year REQUIRED STAFF Operations Board members, SRTMC Manager, MEASURED Annual (September) -Generate monthly reports to show grant expenditures PERFORMANCE MEASURE SRTMC Operations Board satisfaction with timeliness/quality of monthly financial reports GOAL 100% SRTMC Operations Board satisfaction REQUIRED STAFF Operations Board members, SRTMC Manager, MEASURED Monthly -Generate long term cost estimates for SRTMC maintenance and operations PERFORMANCE MEASURE Long term SRTMC maintenance and operations costs are identified GOAL Complete by end of 2017 REQUIRED STAFF Operations Board members, SRTMC Manager, SRTMC staff MEASURED Annual (end of year) FUNDING SOURCES ■ Congestion Mitigation and Air Quality (CMAQ)/Surface Transportation Program (STP) Funds (infrastructure, Maintenance and Operations, SRTMC Manager position, SRTMC Supervisor position, SRTMC1T Manager, and one SRTMC Operator position) WSDOT Traffic Operations Funds (5 permanent SRTMC Operator positions, and 1 permanent part time SRTMC Operator position. • Partner Funds were not collected in 2016. The remaining partner funds from previous years are being applied to Fiscal Year 2017 and are used at the Operations Board discretion for maintenance and operations of the SRTMC. Use of CMAQJSTP Funds to support SRTMC operations is approved by all joint venture agencies. The infrastructure and four staff positions are funded through federal dollars secured through agency coordination with WSDOT Toll Credits used for the match. FUND SOURCE FUNDING PURPOSE INITIAL AMOUNT REMAINING AMOUNT 2011 CMAQSRTC 10-01 Equipment $978,500 $342,000 STP SRTC WS021 Maintenance and operations $1,225,000 $806,000 CMAQATMS Replacement ATMS systems engineering and replacement $1,786,000 $1,418,056 2017-2019 STP Non- Roadway Future maintenance and operations $1,267,900 $1,267,900 WSDOT Traffic Operations funds (2015-2017 biennium) Maintenance and Operations $730,000 $372,440 Partner Funds $56,608 $56,608 SPOKANE REGIONAL TRANSPORTATION MANAGEMENT CENTER BUDGET 2017 OWVP Mita MOP ragtM MEW - 1 i tit 1 WOO ngui, SPOKANERE(tONAL SRTMC TRANSPORTATION MANAGEMENT CENTER Prepared by: Spokane Regional Transportation Management Center Operations Board 221 West First Avenue Suite 310 Spokane, WA 99201 VISION Aspire to facilitate for the safe and predictable movement of people and goods throughout Spokane County. MISSION The Spokane Regional Transportation Management Center (SRTMC) is a team of professionals working 24/7 with multiple jurisdictions to deliver reliable transportation information services, locally and regionally, in order to create a safe and efficient travel experience for everyone. PURPOSE -SRTMC The Spokane Regional Transportation Management Center (SRTMC) is an organization that was created to help with the safe and predictable movement of people and goods throughout Spokane County. In addition, monitoring of Washington State Department of Transportation (WSDOT) Eastern Region facilities outside of Spokane County occurs through the SRTMC. The SRTMC's main purpose is to provide traveler information and traffic management services on our transportation system to allow a seamless multi -modal commute across jurisdictional boundaries. This is accomplished through the use of intelligent transportation system (ITS) devices, the SRTMC website, twitter, Facebook, 511, and roving incident response trucks (IRT). The SRTMC is also the regional focal point for ITS architecture planning, development, and implementation. Having a single organization leading this effort allows the region to better manage current capacity and to give multiple jurisdictions one voice when it comes to pursuing limited funding. -SRTMC Operations Board The SRTMC Operations Board is a voluntary association and joint Board comprised of professional representatives from the City of Spokane (COS), City of Spokane Valley (COSV), Spokane County, Spokane Transit Authority (STA) and WSDOT, with Spokane Regional Transportation Council (SRTC) as an ex -officio member. The Operating Board's main purpose is to oversee the management and operation of transportation facilities within Spokane County for mutual public benefit. This is accomplished through coordination of transportation system operations between partnering agencies in an effort to optimize regional resources. Monthly meetings of the SRTMC Operating Board and regular updates to the ITS Implementation Plan support these efforts. This coordination helps to ensure the optimal use of limited local, state and federal resources. Coordination at the state level also occurs with adjacent jurisdictions such as the Idaho Transportation Department and other Washington State TMCs. PARTICIPANTS The primary public agency participants in the Spokane Regional Transportation Management Center include: Agency SRTMC Operations Board Representative SRTMC Operations Board Alternate City of Spokane Andy Schenk Ken Knutson City of Spokane Valley Sean Messner Ryan Kipp Spokane County Nathan Thompson Barry Greene Spokane Regional Transportation Council Eve Nelson Kevin Wallace Spokane Transit Authority Fred Nelson Kathleen Weinand WSDOT Glenn Wagemann Robert Blegen CY 2017 Budget Summary The SRTMC prepares and adopts a proposed budget for each calendar year. The SRTMC Operations Board recommends approval of the budget to participating agency executives. The agency executives are the approving authority for the SRTMC annual budget. The annual budget may be amended by vote of the agency executives, provided such amendment does not require additional budget appropriation, or by joint approval of the executives where such amendment does require additional member agency budget appropriation. Financial Management Practices The SRTMC prepares a budget for financial planning purposes. It is used only as a planning tool with no legal requirement to amend the budget as factors change throughout the year. The budget and Work Plan are interconnected as changes to one impact the other. Any changes are presented for review and approval by the Operations Board. The SRTMC Manager reports financial activity monthly to the Operations Board for their approval. The SRTMC is funded through multiple sources. These sources include federal grants, WSDOT traffic operation funds and partner agency dues. The SRTMC Manager as a representative of WSDOT is responsible for managing the funds through an interlocal agreement. It should be noted that an indirect cost plan is not necessary for the operations of the SRTMC. The Operations Board inquired about the need for an indirect cost plan, in which the SRTMC Manager contacted Mr. Rick Judd (FHWA Financial Manager — Washington Division) for clarification. Mr. Judd provided direction that the operation and maintenance of the SRTMC is a unique situation, and that all associated costs for operations and maintenance can be billed directly to federal aid agreements (federal grants) identified for such purposes. Therefore, an indirect cost plan is not necessary. Dues have historically been collected from SRTMC participating agencies. The Operations Board decided that collecting dues in 2015 and 2016 wasn't necessary since there was a surplus in the account. Since the surplus has not been utilized, the Board has decided to not collect dues for 2017 as well. The current funds in that account are $56,608. They are currently being kept as a cash reserve and will be used for necessary grant matches or emergent needs as voted on by the Operations Board, It is anticipated that participating member dues will need to be collected again in the future at an annual cost of $15,000 per participant. Any future collection of dues will need at least a 75 percent approval vote by the SRTMC Executive Board. It should be noted that at the current spend rate the awarded federal grants are projected to be expended between October 2020 and March 2021. The grants were originally projected to be fully expended by December 2019. FUNDING SOURCES ■ Congestion Mitigation and Air Quality (CMAQ)/Surface Transportation Program (STP) Funds (infrastructure, Maintenance and Operations, SRTMC Manager position, SRTMC Supervisor position, SRTMC IT Manager, and one SRTMC Operator position) ▪ WSDOT Traffic Operations Funds (5 permanent SRTMC Operator positions, and 1 permanent part time SRTMC Operator position. Partner Funds were not collected in 2016. The remaining partner funds from previous years are being applied to Fiscal Year 2017 and are used at the Operations Board discretion for maintenance and operations of the SRTMC. Use of CMAQ/STP Funds to support SRTMC operations is approved by all joint venture agencies. The infrastructure and four staff positions are funded through federal dollars secured through agency coordination with WSDOT ToII Credits used for the match. FUND SOURCE FUNDING PURPOSE INITIAL AMOUNT REMAINING AMOUNT 2011 CMAQ SRTC 10-01 Equipment $978,500 $342,000 STP SRTC WS021 Maintenance and operations $1,225,000 $806,000 CMAQATMS Replacement ATMS systems engineering and replacement $1,786,000 $1,418,056 2017-2019 STP Non- Roadway Future maintenance and operations $1,267,900 $1,267,900 WSDOT Traffic Operations funds (2015-2017 biennium) Maintenance and Operations $730,000 $372,440 Partner Funds $56,608 $56,608 CY 2017 Operations and Maintenance Revenue Estimate The CY 2017 estimate for operations and maintenance revenue is $973,113 (Table 1). As shown below, 58% of the revenues included in the CY 2017 Budget are provided by federal sources and the remaining 42% are made up by WSDOT traffic operation funds. Table 1: CY 2017 Operations and Maintenance Estimated Revenue STP SRTC WS021(annualized) $ 563,728 WSDOT Traffic Operation Funds 409,385 TOTAL ESTIMATED REVENUES $973,113 CY 2017 Operations and Maintenance Expenditure Estimate The CY 2017 estimate for operations and maintenance expenditures (Table 2) are divided into the following five divisions: 1) Labor; 2) Rent; 3) Monthly Expenses; 4) Non -engineering services; and 5) Software licenses/Hardware. Table 2 below provides a breakdown of expenses by these categories. Table 2: CY 2017 Operations and Maintenance Estimated Expenditures Labor $ 878,480 Rent 20,760 Monthly Expenses 9,000 Non -engineering services 1,225 Software licenses/Hardware 63,648 TOTAL ESTIMATED EXPENDITURES $973,113 CY 2017 SRTMC Project Revenue Estimate The CY 2017 estimate for project revenue is $1,760,056 (Table 3). Table 3: CY 2016 Project Estimated Revenue 2011 CMAQ SRTC 10-01 $ 342,000 ATMS Replacement 1,418,056 TOTAL ESTIMATED REVENUE $1,760,056 CY 2017 Project Expenditure Estimate The CY 2017 estimate for project expenditures (Table 4) are divided into the following three divisions: 1) Engineering services (ATMS); 2) Equipment procurement; and 3) ATMS procurement. Table 4 below provides a breakdown of expenses by these categories. Table 4: CY 2017 Project Estimated Expenditures Engineering services (ATMS) $ 78,360 Equipment procurement 30,000* ATMS Procurement 872,908** TOTAL ESTIMATED EXPENDITURES $981,268 *It is projected that approximately $30,000 out of the $342,000 will be expended for hardware replacement. The remainder of the funds is intended to be used after ATMS install for arterial data gathering equipment. It is likely the remainder of the funds will not be spent until CY 2018. **The amount shown is estimated as follows; $123,600 is planned to be expended in the remaining CY 2016. It is projected that $749,308 will be expended in CY 2017. The remainder of the funds will be used for ongoing ATMS maintenance/site license fees. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Check all that apply: ❑ consent ❑ old business ❑ information X admin. report Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session X AGENDA ITEM TITLE: City Hall Lease Extension for the Period April 1 through September 30, 2017. GOVERNING LEGISLATION: None. PREVIOUS COUNCIL ACTION TAKEN: Council's last formal action on the City's lease with Northwest Christian Schools for City Hall space occurred on November 4, 2014, when the lease was amended to provide for moving the Finance Department into the space formerly occupied by Wells Fargo, and moving the Permit Center from the wing to the west of the main building into the space previously occupied by the Finance Department. BACKGROUND: The City entered into an initial lease with Northwest Christian Schools for City Hall space at the current site in January 2003 and the lease has been extended and/or revised several times, with the current extension running for the four-year period April 1, 2013 through March 31, 2017. We are currently in the final year of this four-year lease and will vacate the premises once the new City Hall building is complete. We anticipate the new City Hall building will be substantially complete by August 31, 2017 and that we will move into the structure during the month of September 2017. Consequently, we need to extend our lease with Northwest Christian Schools for a 6 -month period that extends through September 30, 2017. The City currently pays an annual lease amount of $434,661 and leases a total of 28,250 square feet of space including: • 25,950 square feet in the Clocktower Building where we currently pay $16.40 per square foot per year for an annual total of $425,650.44 • 2,300 square feet in the side building which serves as warehouse space where we currently pay $3.92 per square foot per year for an annual total of $9,010.56. • The annual cost of the existing lease for the past five -years is as follows: o April 1, 2012 through March 31, 2013 = $474,796 o April 1, 2013 through March 31, 2014 = $400,000 o April 1, 2014 through March 31, 2015 = $408,000 o April 1, 2015 through March 31, 2016 = $426,138 o April 1, 2016 through March 31, 2017 = $434,661 • An additional charge we incur is a quarterly common area maintenance (CAM) charge that totals approximately $1,000 to $3,000 per year. Northwest Christian Schools is willing to provide the lease extension we are seeking at a rate that reflects a 50% increase over our current monthly rate of $36,221.75. This calculates to a monthly increase of $18,110.88 or $54,332.63 per month for a total of $325.995.78 over the six- month extension. Over the six-month extension we are seeking, this will cost the City an additional $108,665.28 beyond our current lease rate. If for some reason we were forced to extend the lease period beyond September 30, 2017, Northwest Christian Schools has advised us that they may incur substantial expenses and suffer significant economic harm due to conceivably having leased our existing space to new 1 tenants. Consequently, the lease amendment also includes "Holdover" language that states the City would pay an amount equal to 200% of the rent applicable during the final month of the lease. This means that "if" we were not able to vacate the premises by September 30, 2017, the monthly lease beginning October 2017 would increase from $54,332.63 to $108,665.26. The lease further states that the City would also "...pay all costs, expenses, attorneys' fees and damages, including consequential damages sustained by Lessor, directly or indirectly, by reason of Lessee's failure to deliver possession of the Premises by September 30, 2017." Consequently, we must be certain to have vacated the space we are currently leasing by September 30, 2017, and according to our City Hall contractor (Meridian) architect (Architects West) and Staff this will be done. OPTIONS: No action is required of Council at this time, however with Council consensus this evening, we plan to include the lease extension approval in the consent agenda at Council's November 8, 2016 Council meeting. RECOMMENDED ACTION OR MOTION: None at this time. BUDGET/FINANCIAL IMPACTS: The 50% increase in the lease rate for the six-month period beginning April 1, 2017 will total $108,665.28 and is included in the proposed 2017 Budget. STAFF CONTACT: Mark Calhoun, City Manager ATTACHMENTS: • Proposed lease amendment. • May 9, 2016 letter from WEB Properties that communicates the increase in the lease amount. • E-mail correspondence between WEB Properties and the City that confirms the details included in the lease amendment. 2 LEASE AMENDMENT THIS AGREEMENT made this day of , 2016, by and between the CITY OF SPOKANE VALLEY, which mailing address is 11707 East Sprague, Spokane Valley, Washington 99206, (hereinafter referred to as "Lessee"), and NORTHWEST CHRISTIAN SCHOOLS, INC. a nonprofit corporation, (hereinafter referred to as "Lessor"); WHEREAS, The City of Spokane Valley, as Lessee, and Northwest Christian Schools, Inc., as Lessor, entered into Lease Agreements and renewals all of which expire March 31, 2017 for Suites 101, 102, 103, 104, 105, 106, 304, and B-4 warehouse space as noted below, copies of which are attached hereto as Exhibit "A" (all hereafter referred to as the Lease); and WHEREAS, Lessee and Lessor desire herein to provide for a six-month extension and the terms thereof; NOW, THEREFORE, for and in consideration of the recitations set forth, the terms and provisions herein contained, and the mutual benefits to be derived here from, the parties do hereby contract, covenant and agree as follows: 1. Lease Extension. The Lease shall be modified to extend the Lease until September 30, 2017, according to the terms and conditions herein. The Lessee agrees to comply with all of the terms and conditions of the Lease, as amended by this Lease Amendment. 2. Premises Leased. Lessee leases 25,950 square feet within the Clocktower Building, noted as follows: Suites 101,102, 103, 104, 105, 106 and 304, as well as B-4, 2,300 square feet of warehouse space in the west wing building. All as shown on Exhibit "B" attached hereto (referred to as "Premises"). 3. Amendments to Lease. Lessee and Lessor hereby agree to amend certain provisions under the Lease as follows: a. Lease Expiration Date. The Lease shall be extended for a period of Six (6) Months, which extended Lease term shall expire on September 30, 2017. b. Rent. Monthly rent for the period of April 1, 2016 through March 31, 2017 shall be as follows: Clocktower Suites: $35,470.87 B-4 (base rate)*: $ 750.88 Total Monthly Rent: $36,221.75 Monthly rent for the period of April 1, 2017 through September 30, 2017 shall be as follows: Clocktower Suites: $53,206.31 B-4 (base rate)*: $ 1 126.32 Total Monthly Rent: $54,332.63 *NNN Charges for Suite B-4 shall also be paid according to the terms of the Lease c. Expiration of Lease and Termination of Possession. Lessee agrees and acknowledges that Lessor is relying upon Lessee's agreement to timely vacate the premises no later than the expiration of the term of the Lease, September 30, 2017. Lessee acknowledges that Lessor may incur substantial expenses and suffer significant economic harm in the event Lessee does not fully vacate the premises by that date. Accordingly, Lessee agrees and acknowledges that Lessee has no right to retain possession of the Premises, or any part thereof, beyond September 30, 2017. If Lessee fails to fully vacate the Premises by September 30, 2017: (a) Lessee shall be in default under the terms of the Lease; (b) Lessee shall have no right to continued possession of the Premises; (c) Lessee shall pay to Lessor an amount equal to 200% of the rent applicable during the month immediately following such default, and this amount shall be assessed for each month, or portion thereof following September 30, 2017 until Lessee vacates the Premises; (d) Lessee shall pay all costs, expenses, attorneys' fees and damages, including consequential damages sustained by Lessor, directly or indirectly, by reason of Lessee's failure to deliver possession of the Premises by September 30, 2017; (e) all of Lessee's obligations to Lessor under the terms of the Lease, including the obligation to pay rent and all other sums owing to Lessor, shall continue to apply: (f) Lessor shall have all other Lessor's rights and remedies provided under the terms and conditions of the Lease; and (e) there shall be no renewal or extension of the Leases by operation of any law. Nothing contained herein shall be construed as a consent by Lessor to any holding over by Lessee. Additionally, Lessee shall protect, indemnify, defend, and hold Lessor harmless from and against any and all claims, demands, actions, losses, damages, obligations, costs, and expenses, including, without limitation, attorneys' fees incurred or suffered by Lessor by reason of 1 Lessee's failure to surrender the Premises on the expiration or earlier termination of this Lease in accordance with the provisions of this Lease. d. Paragraphs 3(c) and 3(d) of the Lease Extension and Expansion Agreement dated March 22, 2013 and Paragraphs 3(c), 3(d) and 3(e) of the Lease Amendment dated November 11, 2014, shall all be stricken. 4. Waivers Modification or Amendment. No waiver, modification or further amendment of any term or condition of this Lease Amendment or the Lease shall be effective unless in writing, and no waiver or indulgence by either party or any deviation by the other party from full performance of this Agreement shall be a waiver of the right to subsequent or other full, strict, and timely performance. 5. Merger Clause. This Lease Amendment and the Lease attached as Exhibit A express the full and final purpose and agreement of the parties and will not be qualified, modified or supplemented by course of dealing, usage of trade, or course of performance. There are no verbal agreements which qualify, modify or supplement this Lease Amendment or the Lease. 6. Counterparts. This Agreement may be executed in two or more parts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Except as specifically modified by this Lease Amendment, the terms and conditions of the Lease remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands this day of 2016. LESSOR NORTHWEST CHRISTIAN SCHOOLS, INC. BY: LESSEE CITY OF SPOKANE VALLEY BY: ITS: ITS Executed On Executed On 2 ■ WE ▪ ■ - r Properties, Inc® May 9, 2016 Mr. Mark Calhoun, Acting City Manager City of Spokane Valley 11707 E. Sprague Avenue Spokane Valley, WA 99206 Dear Mark, EC MAY 1 0 2016 City of Spokane Valley Per our previous conversations, the rental amount for the City of Spokane Valley will increase on April 1, 2017. The current lease term expires March 31, 2017. As you know, we have been very concerned as to the actual date the City will be leaving the Clocktower Building. We feel we need at least one year to market the space. My conversations with you have been without conclusion as the City's process has taken several different directions. We now feel the need to get our position in writing so that there is no confusion as to what provisions we are attempting to provide for the City as it relates to the space leased. We understand and accept the City's need to have space to operate and keep the function of government continuing. However, this should not be at the cost of the building ownership. Given the continuing uncertainty as to an exact date on when the City will have its new building built, we are providing the following options for the City to continue as a tenant. April 1, 2017 your rent will increase 150%. This is the standard holdover rate charged in the industry. This provides the City the continued use of the space on a short term basis and compensates the building ownership for the allowed short term use. We will provide the City with up to six months (through September 30, 2017) at this rate beyond the expiration of the current term. The City has the option at this point to choose less than 6 months if you feel you will be out by the timeframe you choose. If the City remains more than six months after lease expiration, the rate will increase to 200% of the rate you pay now. This will be on a month-to-month basis, but the City needs to be aware that it could also create additional problems. We will be marketing the space for occupancy October 1, 2017 (or sooner if you choose less than 6 months for a holdover). If we secure a tenant for October 1, 2017, or your own date, prior to September 30, 2017, and the City is unable to vacate the space, it could cause damage to a new tenant and the current building ownership. The cost for this type of interruption is incalculable at this point. We believe the City has been a good and valuable tenant over the years they have been in the Clocktower Building and we also feel the building ownership has been as equally beneficial to the City. This has been a good relationship for both parties. We are hopeful that the City is able to come to a conclusion, which we have been awaiting for quite some time, as to when they will be vacating the space. We will try and keep you apprised of our leasing efforts when we have an agreement with another tenant. We would ask that the City also keep us apprised of any delays in meeting dates they put forth for turning the space back to us. P.O. Box 21469 • Spokane, WA 99201 • (509) 533-0995 • Fax (509) 533-0997 Should you have questions on these terms, please feel free to contact me. We would appreciate a response to this letter by the end of May 2016. Sincerely, WEB Properties, Inc. William E. Butler, RPA CCIM President Mark Calhoun From: Bill Butler <bill@webpropertiesinc.com> Sent: Monday, September 12, 2016 1:34 PM To: Mark Calhoun; ddgrewe@goregrewe.com Cc: Andy Butler; Cary Driskell; Chris Bainbridge; Chelsie Taylor Subject: RE: City of Spokane Valley lease extension at Redwood Properties Mark, Attached is the new agreement with the changes I noted in my last email. Let me know if you have further questions or changes. Thanks. Sincerely, William E. Butler, RPA, CCIM President WEB Properties, Inc. PO Box 21469 Spokane, WA 99201 509.533.0995 (phone) 509.533.0997 (fax) From: Mark Calhoun [mailto:mcalhoun@spokanevalley.org] Sent: Thursday, September 08, 2016 9:01 AM To: 'Bill Butler' Cc: Andy Butler; Cary Driskell; Chris Bainbridge; Chelsie Taylor Subject: RE: City of Spokane Valley lease extension at Redwood Properties Bill, We will plan to extend only through September 30, 2017. Regarding the lease itself, the only thing I can see that should be have changed is in 3(c), where about half way through, it talks about the City paying 200% for holding over, including in the month preceding such default/holdover. I understand the 200% would go into effect on October 1 but I don't think it should apply retroactively to the month of September. I think it the word "preceding" should be replaced with "following". With your concurrence we'll change that one word. Following that, I'll plan to bring this before our Council for approval to extend the lease for a period of 6 -months, or through September 30, 2017. Thanks, Mark Calhoun, Acting City Manager City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, WA 99206 Phone: 509-720-5100 mcalhoun@spokanevalley.org From: Bill Butler [mailto:bill@webpropertiesinc.com] Sent: Sunday, September 04, 2016 1:14 PM 1 To: Mark Calhoun Cc: Andy Butler Subject: RE: City of Spokane Valley lease extension at Redwood Properties Mark, Per your request, attached please find a lease extension, as prepared by Ownership's legal counsel, for the 6 -month period April 1, 2017 through September 30, 2017. Please review and let me know if there are changes that need to be made. In particular, we want the City to know that if there is any doubt that September 30 ,2017 is too short a time frame, we will extend the same rate beyond that at this time only. The need for Ownership is to have a date we can depend upon to market to new tenants. So if there is more comfort with an end of October or November date, we can commit to that rate now if the City wants to commit to one of those dates. You also asked for some consideration on the rate. During their visit with the Mayor earlier this month, Ownership felt they made it clear that they would be firm on this industry standard holdover rate. In addition, we feel the need to inform you once again that whatever the holdover date is that the City requests, if the premises are not vacated and we have another tenant depending on us to start to ready the space for them, we will need to hold the City liable for and costs or losses that may be incurred. The Owner appreciates the relationship the City has had to this point and isn't trying to be harsh with the City, but they need me to make a point that this Ownership cannot be left in a position of losing potential tenant(s) due to any construction delays on the City's project. We are hopeful this will not be an issue, but want all of us to be aware of this important matter. You may recall that your current lease term saved the City over $75,000 per year in lease costs over the past 3.5 years and will result in over $300,000 in savings to the City by April 1, 2017.1 bring this up to remind you that the Ownership did allow the City to enjoy a reduction in lease terms over the last period in order to keep the City as a valuable tenant. You are undoubtedly busy with construction now underway on the new City Hall and we will as well marketing the space. Timely communication on both our parts will help make this as smooth a process as it can be. We want to thank you in advance for your help in this transition. Sincerely, William E. Butler, RPA, CCIM President WEB Properties, Inc. PO Box 21469 Spokane, WA 99201 509.533.0995 (phone) 509.533.0997 (fax) From: Mark Calhoun[mailto:mcalhoun(aspokanevalley.orq] Sent: Sunday, September 04, 2016 8:25 AM To: 'Bill Butler' Cc: Mark Calhoun Subject: RE: City of Spokane Valley lease extension at Redwood Properties Bill, I've returned from vacation and have been settling back into the office over this past week. I'm following up on the City of Spokane Valley extending the lease for the space we occupy at the Redwood Property. As I indicated in my previous e-mails we are in a position to commit to a six-month extension that would carry us through the period beginning April 1, 2017 through September 30, 2017. Regarding the cost of the lease extension, during our verbal discussion in April 2016 and repeated in your letter dated May 9, 2016, you state that the rent will increase 150% for the 6 -month period ending September 30, 2017 (increasing the monthly lease from $36,221.75 to $54,332.63). You went on to explain that this is a standard holdover rate charged 2 in the industry but as I indicated in our discussion I view our extended occupancy as more of a "lease extension" for a predetermined period of time as opposed to simply "holding over" after the lease has expired. I guess at the end of the day this boils down to semantics but regardless, I respectfully ask that you and the Board of NW Christian Schools consider a rent increase that is more reflective of the consumer price index, or if not that, an increase that is considerably less than the 150% that is currently being requested. Thank you, Mark Calhoun, Acting City Manager City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, WA 99206 Phone: 509-720-5100 mcalhoun@spokanevalley.org From: Mark Calhoun Sent: Monday, August 08, 2016 11:32 AM To: 'Bill Butler' Subject: RE: City of Spokane Valley lease extension at Redwood Properties Bill, FYI. I will be out of town from Friday, August 12 through Friday, August 26, 2016 and returning to the office on Monday, August 29. If you should happen to send the revised lease documents to me during that time frame I will plan to respond sometime during the week of August 29tH Thanks, Mark Calhoun, Acting City Manager City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, WA 99206 Phone: 509-720-5100 mcalhoun@spokanevalley.org From: Bill Butler[mailto:bill©webpropertiesinc.com] Sent: Wednesday, July 20, 2016 2:18 PM To: Mark Calhoun Cc: Andy Butler Subject: RE: City of Spokane Valley lease extension at Redwood Properties Hi Mark, The lease document is with the attorneys for review. We should have that back by the end of the week. The Board has worked with me on a response, as the Mayor met only with them, that response is ready, but the lease needs to be attached. You should have this early next week. Sincerely, William E. Butler, RPA, CCIM President WEB Properties, Inc. PO Box 21469 Spokane, WA 99201 509.533.0995 (phone) 3 509.533.0997 (fax) From: Mark Calhoun[mailto:mcalhoun@spokanevalley.orq] Sent: Monday, July 18, 2016 7:33 AM To: Bill Butler Subject: FW: City of Spokane Valley lease extension at Redwood Properties Bill, Just following up on the City of Spokane Valley extending the lease for the space we occupy at the Redwood Property. As I indicated in my previous e-mail we are in a position to commit to a six-month extension that would carry us through the period beginning April 1, 2017 through September 30, 2017. Regarding the cost of the lease extension, during our verbal discussion in April 2016 and repeated in your letter dated May 9, 2016, you state that the rent will increase 150% for the 6 -month period ending September 30, 2017 (increasing the monthly lease from $36,221.75 to $54,332.63). You went on to explain that this is a standard holdover rate charged in the industry but as I indicated in our discussion I view our extended occupancy as more of a "lease extension" for a predetermined period of time as opposed to simply "holding over" after the lease has expired. I guess at the end of the day this boils down to semantics but regardless, I respectfully ask that you and the Board of NW Christian Schools consider a rent increase that is more reflective of the consumer price index, or if not that, an increase that is considerably less than the 150% that is currently being requested. Thank you, Mark Calhoun, Acting City Manager City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, WA 99206 Phone: 509-720-5100 mcalhoun@spokanevalley.org From: Mark Calhoun Sent: Tuesday, June 21, 2016 9:31 AM To: Bill Butler Subject: City of Spokane Valley lease extension at Redwood Properties Bill, Regarding the City of Spokane Valley's lease extension with NW Christian Schools for our current space at the Redwood Property, I believe we're in a position to commit to a final date of September 30, 2017. Our contract with Meridian Construction calls for "substantial completion" of August 31, 2017 but we've been holding off on making a commitment on the lease extension pending them getting the project started and an accurate assessment from their perspective of the work in front of them. With that said, could you please draw up the lease extension for the 6 -month period April 1, 2017 through September 30, 2017. Regarding the cost of the lease extension, during our verbal discussion in April 2016 and repeated in your letter dated May 9, 2016, you state that the rent will increase 150% for the 6 -month period ending September 30, 2017 (increasing the monthly lease from $36,221.75 to $54,332.63). You went on to explain that this is a standard holdover rate charged in the industry but as I indicated in our discussion I view our extended occupancy as more of a "lease extension" for a predetermined period of time as opposed to simply "holding over" after the lease has expired. I guess at the end of the day this boils down to semantics. Regardless, I respectfully ask that you and the Board of NW Christian Schools consider a rent increase that is more reflective of the consumer price index, or if not that, an increase that is considerably less than the 150% that is currently being requested. 4 Thank you, Mark Calhoun, Acting City Manager City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, WA 99206 Phone: 509-720-5100 mcalhoun@spokanevalley.org 5 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Appleway Trail Update GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Adopted the 2017-2022 Six Year TIP which included the Appleway Trail projects. BACKGROUND: Staff will provide an update on the status of construction of the Appleway Trail. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: None BUDGET/FINANCIAL IMPACTS: The Appleway Trail projects are funded with state and federal grants. The 2017 budget reflects the construction of the trail between Pines and Evergreen and between Sullivan and Corbin. STAFF CONTACT: Steve M. Worley — CIP Manager Mike Stone - Parks and Recreation Director Eric Guth - Public Works Director ATTACHMENTS: PowerPoint Presentation S`pokane Walley i 1 Appleway Trail Update November 1, 2016 PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS Spokane i�Valley i Purpose • Create a safe, shared -use path that is accessible to pedestrians and cyclists. • Provide safe street crossings where the trail meets a road. • Invite a diverse set of users to the Appleway Trail by creating a variety of park features. PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane Valley Overall Trail Plan vetg"ree ---------r---- i fructio 2017 ' I '_ ..411, x ■ I i a _6m.fi C 1Ysz- k3 green to Sullivan Design 2018 Construction 2020 Construction 2017. PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS Spokane 400.0Valley University to Pines University Plaza Based on Concept Plan Includes: Gabion Benches Water Fountain Kiosk Picnic Tables Rail Paving Trail Sign University Plaza APPLEWAY TRAIL CORRIDOR Not all amenities shown in Master Plan were able to be constructed More funds needed to fully complete vision of the Master Plan Trail Landscaping ► Rows of trees at University Plaza ► Berms with Ornamental Shrubs east of Plaza ► 26 Trees planted along Trail 6 Benches with shade trees along Trail Hydroseed disturbed areas Trail Landsca•ing PI,. SCHEDULE B LANDSCAPE AND IRRIGATION PLAN in UNIVERSITY PLAZA G4LOUT5 PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S5atlley University to Pines - Photos [Will insert aerial photo prior to council meeting.] PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane .Valley Pines to Evergreen • Funded with Federal STP & TAP Grants • Project Budget - $2,134,057 • Plans & Specs Prepared CITY OF SP,14111E WALLEY APPLEWAY SHARED -USE PATH PINES ROAD/SR-27 TO EVERGREEN ROAD KEY IA4P -M� I — I CONTRACT PROVISIONS AND PLANS FOR CONSTRUCTION OF: Appleivap Shared Use Path es Rd. to Eve • reeu Rd. Caporal Improvement Project No.: 0227 Federal Atel Pro jest Na.: STPUL-1223 (004) BID NO.: 10-084 Bid Set PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS Spokane _..Valley Pines to Evergreen Similar to previous section: • Plaza at Evergreen Road (smaller) • Trail Lighting (same type &spacing) • Irrigation along entire Trail (future expansion) • Benches and Shade Trees along Trail • RRFB Pedestrian Crossing at McDonald PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS Spokane _..Valley Pines to Evergreen Added Improvements Include: • Removing and Hauling off Debris Piles • Landscaping on both sides of each street crossing (Irrigated sod, shrubs and trees) • HAWK Signal at Pines Road (SR 27) • Cover Entire Corridor w/ Topsoil and Scottish Links Grass Seed PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane Valley Pines to Evergreen Landscaping Plans Include: LANDSCAPE AND IRRI ATIO1 PLAN UlII LiuI u I. u.J1 v (-)1,--) LANDSCAPE LANDSCAPE AND IRRIGATION PLAN Topsoil & Grass Seed T— Beriches & Shade Trees 1l] IL H II w, IV GAPVwC SC4E I Ifni ,m z IyI� I J .1, 0 ! J ::0;_ — few sir f"3_ Z W W If W iy E III MSJ I CRFP+iE SCALE Q x �a as ,w 2 PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane Valley Pines to Evergreen Landscaping Plans Include: — —Mar- 9 B ENLARGED LANDSCAPE PLAN MCDDNALD RD (WEST) ENTRY PLANTING ENLARGED LANDSCAPE PLAN PINES ENTRY PLANTING 27. 1 t ENLARGED LANDSCAPE PLAN MCDONALD RD (EAST) ENTRY PLANTING Landscaping Treatments at each street crossing C ENLARGED LANDSCAPE PLAN S ENLARGED LANDSCAPE PLAN BLAKE RD (WEST) ENTRY PLANTING J BLAKE RD (EAST) ENTRY PLANTING PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane .Valley Pines to Evergreen 4 LANDSCAPE PLAN EVERGREEN R[] (WEST) ENTRY PLAZ' EVERGREEN RD. Landscaping Plans Include: Landscaped Plaza at Evergreen Road Bench and Water Fountain Included PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS SPokan e~ Pines to Evergreen Landscaping Plans Include: PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS Spokane i� Valley Sullivan to Corbin • Public Meeting held October 19 Trail Amenities: Planned and Potential AI'PLEWSAY T:LM PE'TEN1 AL AMENITIES r Atil L�iriwrl APPI AIA, TRAIL POTENT a AMENITIES _Sullivan Road to Corbin Road WELCH COMER`V Spokane Valley Ap. • Not in Limits of Conceptual Design Report • Project Details • Approximately 1.4 miles of Shared -use Path • More Constrained Right of Way • Some Trail Amenities • Street Crossing Treatments What's in a Concept Plan? • Typical Section & Surface Material • Alignment • Amenities and Landscaping • "Kit of Parts" • Cost Estimate IAppkwAy Ave WELCH COMER`, Spokane Valley Appleway Trail lk Spokane Valley Appleway Trail PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane Valley Sullivan to Corbin • Develop Master Plan • 2"d Public Meeting • Prepare Concept Design • Council Update • Prepare Plans, Specifications & Estimates (PS&E) • Bid and Construct in 2017 PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS S`pokane 1Valley Questions? green to Sullivan Design 2018 Construction 2020 Construction 2017. PUBLIC WORKS AND PARKS & RECREATION DEPARTMENTS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 1, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: New City Hall — Project Update GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Multiple meetings, Council retreat 02-17-15; Administrative Report 03-17-15, Motion Consideration 03-24-15, Study Session 09-15-15, Motion Consideration 09-29-15, Interior Discussion 11-18-15, Heating and Cooling Discussions on 12-1-15 and 12-15-15, Interior and Exterior Discussion 12-29-15, General updates on 01-19- 16 and 02-02-16, Final design discussion on 02-16-16 and Approval of City Hall Plan authorization to proceed with bid process on 02-23-16; Admin report on bid results at Council's 4-26-16 meeting; Bid Award on May 3, 2016; Admin Report on Project Update on August, 16, 2016, September 6, 2016, and October 4, 2016. BACKGROUND: City Council and staff have been working since early 2015 on the design of the New City Hall building. Construction of the project began on May 31, 2016. Staff will give a brief update on the current status of the project. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: The City Hall construction project is anticipated to cost $14.154 million including land acquisition, design services, and construction. This project will be funded through a General Obligation bond which will be authorized by City Council through a separate motion. STAFF CONTACT: Steve M. Worley, CIP Manager Eric Guth, Public Works Director ATTACHMENTS: PowerPoint Presentation S`pokane Valley City Hall Update Spokane _..Valley • Construction Began Schedule May 31, 2016 • Substantial Completion August 31, 2017 • Final Completion September 30, 2017 Project Still on Schedule PUBLIC WORKS DEPARTMENT S`pokane Walley 1 1 Progress —Week 18 3rd Floor South Shear Walls and Decking PUBLIC WORKS DEPARTMENT Spokane 4_�� Valley Progress —Week 18 Steel Decking — 2nd Floor North Wing PUBLIC WORKS DEPARTMENT Spokane 4_�� Valley Progress —Week 18 Ductwork Delivery PUBLIC WORKS DEPARTMENT Spokane i�Valley 1 Progress —Week 18 Shear Wall and Concrete Floor Pours — 3rd Floor South PUBLIC WORKS DEPARTMENT Spokane 4_�� Valley Progress —Week 19 Elevator Shear Wall Formwork — North Wing PUBLIC WORKS DEPARTMENT 1 Spokane i�Valley Progress —Week 19 Setting Roof Trusses — South Wing PUBLIC WORKS DEPARTMENT i S`pokane Walley Progress —Week 19 Exterior Metal Framing — South Wing PUBLIC WORKS DEPARTMENT S`pokane Walley Progress —Week 19 Overall Project Site PUBLIC WORKS DEPARTMENT S`pokane Walley Progress —Week 20 Exterior Metal Framing PUBLIC WORKS DEPARTMENT Stiokane Valley Progress Week 20 Shear Walls — North Wing PUBLIC WORKS DEPARTMENT Spokane 4_�� Valley Progress —Week 20 Council Chambers Footings & Stem Walls PUBLIC WORKS DEPARTMENT S`pokane 1Valley Progress —Week 20 Overall Project Site PUBLIC WORKS DEPARTMENT S`pokane Walley Progress —Week 21 [Will add photos prior to council meeting.] PUBLIC WORKS DEPARTMENT S`pokane Walley Progress - Building PUBLIC WORKS DEPARTMENT S`pokane 1Valley Progress - Site PUBLIC WORKS DEPARTMENT Spokane i� Valley Additional Information • 33% Schedule Completed • -$2,481,190 paid to Contractor (23%) • 67 Requests for Information (RFIs) Answered - 4 Pending • 207 Submittal Packages Reviewed PUBLIC WORKS DEPARTMENT Spokane Additional Information Upcoming Activities ▪ Structural Steel Erection — North Wing ■ Glu -Lam Beam Installation ■ 2nd Floor Decking and Pour —North Wing ■ Roofing — North Wing ■ Exterior Framing and Masonry —South Wing ■ Interior Electrical, Mechanical & Plumbing PUBLIC WORKS DEPARTMENT Spokane 4_�� Valley Questions? PUBLIC WORKS DEPARTMENT DRAFT ADVANCE AGENDA as of October 27, 2016; 8:30 a.m. Please note this is a work in progress; items are tentative To: Council & Staff From: City Clerk, by direction of City Manager Re: Draft Schedule for Upcoming Council Meetings Nov 8, 2016, Special Meetin2: Formal Meetin2 Format, 5:00 p.m. 1. Consent Agenda (claims, payroll, minutes, City Hall Lease Extension) (5 minutes) 2. Second Reading Proposed Ordinance 16-016, 2016 Budget Amendment — Chelsie Taylor (10 minutes) 3. Second Reading Proposed Ordinance 16-017 Adopting 2017 Budget — Chelsie Taylor (10 minutes) 4. Motion Consideration: SRTMC Interlocal — Eric Guth, Sean Messner (5 minutes) [*estimated meeting: 30 minutes] Nov 8, 2016, Formal Meetin2 Format, 6:00 p.m. [due Tue, Nov 1] 1. PUBLIC HEARING: Draft Comprehensive Plan and Development Regulations (-90 minutes) 2. PUBLIC HEARING: Transportation and Infrastructure Utility Tax - Chelsie Taylor (-60 minutes) 3. First Reading Proposed Ordinance 16-019 Comprehensive Plan & Develop.Regulations — M.Basinger(20 mins) 4. First Reading Proposed Ordinance 16-018 Transportation & Infrastructure Utility Tax -. (20 minutes) [*estimated meeting: 190 minutes] Nov 15, 2016, Study Session Format, 6:00 p.m. [due Tue, Nov 8] Proclamation: World Pancreatic Cancer Day ACTION ITEMS: 1. Second Reading Proposed Ordinance 16-018 Transportation & Infrastructure Utility Tax (20 minutes) NON -ACTION ITEMS: 2. Marketing Study Update — John Hohman, Atlas Advertising (60 minutes) 3. Parks Maintenance Contract — Mike Stone (15 minutes) 4. CenterPlace Catering — Mike Stone (10 minutes) 5. Lodging Tax Advisory Committee Recommendations to Council — Chelsie Taylor (20 minutes) 6. Barker Overpass Design — Eric Guth, Steve Worley (15 minutes) 7. Advance Agenda — Mayor Higgins (5 minutes) [*estimated meeting: 145 minutes] Nov 22, 2016, Special Meeting, 3:30 -5 p.m., 2nd Floor Con f Room, City Hall Council meets with Lobbyists and 4th District Legislators Nov 22, 2016, Formal Meeting Format, 6:00 p.m. [due Tue, Nov 15] Proclamation: In Support of Small Business Saturday 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Second Reading Proposed Ordinance 16-019 Comp Plan & Dev. Regulations — Mike Basinger (20 minutes) 3. Motion Consideration: Parks Maintenance Contract — Mike Stone (10 minutes) 4. Motion Consideration: CenterPlace Catering Contract — Mike Stone (10 minutes) 5. Admin Report: Advance Agenda — Mayor Higgins (5 minutes) 6. Info Only: Department Reports [*estimated meeting: 50 minutes] Nov 29, 2016 — No Meeting — Thanksgiving Holiday Dec 6, 2016, Study Session Format, 6:00 p.m. [due Tue, Nov 29] 1. District Court Presentation — Mark Calhoun, Judge Walker, Court Admin. John Witter (30 minutes) 2. Property Crimes, Wa. Assoc. of Sheriffs & Police Chiefs (WASPC) — Mike Werner (15 minutes) 3. Myrtle Point Cleanup — Cary Driskell 4. City Hall Update — Eric Guth 5. Advance Agenda — Mayor Higgins (20 minutes) (10 minutes) (5 minutes) [*estimated meeting: 80 minutes] Draft Advance Agenda 10/27/2016 11:56:18 AM Page 1 of 2 Dec 13, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Motion Consideration: Funding Allocation, Lodging Tax — Chelsie Taylor 3. Admin Report: Advance Agenda — Mayor Higgins Dec 20, 2016, Study Session Format, 6:00 p.m. 1. Advance Agenda 2. Info Only: Department Reports (normally due for Dec 27 mtg) Dec 27, 2016 — No Meeting — Christmas Holiday [due Tue, Dec 6] (5 minutes) (25 minutes) (5 minutes) [*estimated meeting: 50 minutes] [due Tue, Dec 13] (5 minutes) [*estimated meeting: minutes] January 3, 2017, Study Session Format, 6:00 p.m. [due Tue, Dec 27] 1. Mayoral Appointment: Two Planning Commissioners (3 -yr. terms) (5 minutes) 2. Mayoral Appointment: Two Members for Lodging Tax Advisory Committee (1 or 2 yr. terms) (5 minutes) 3. Mayoral Appointment: Councilmembers to Various Board and Committees for 2017 (10 minutes) 4. Advance Agenda — Mayor Higgins (5 minutes) January 10, 2017, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins January 17, 2017, Study Session Format, 6:00 p.m. 1. Advance Agenda January 24, 2017, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins 3. Info Only: Department Reports January 31, 2017, Study Session Format, 6:00 p.m. February 7, 2017, Study Session Format, 6:00 p.m. *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: 8t' & McDonald follow-up (April, 2017) AWC Citizen Action Days (Feb 15-16, 2017) Consultant Agreement Design Barker Rd/BNSF Separation Project Oath of Office SCRAPS Update Second Amendment Sanctuary City Term Limits Undergrounding Utility Facilities in ROW Draft Advance Agenda 10/27/2016 11:56:18 AM [due Tue, Jan 3] (5 minutes) (5 minutes) [due Tue, Jan 10] [due Tue, Jan 17] (5 minutes) (5 minutes) Page 2 of 2 Spo :�kane ,00Valley 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 ♦ Fax: 509.921.1008 • cityhall@spokanevalley.org Memorandum To: City Council Members; Mark Calhoun, Acting City Manager From: Michael D. Stone, CPRP, Director of Parks and Recreation Date: November 1, 2016 Re: Parks Maintenance Contract Update The City of Spokane Valley began contracting out park maintenance services in 2005. This first contract was for one year with four one-year renewal options expiring December 31, 2009. The second contract was publically bid in 2009 for the 2010 calendar year and it was for a one year contract with six, one-year renewal options expiring December 31, 2016. The current Parks Maintenance Contract is with Senske Lawn and Tree Care. Currently staff is developing a new park maintenance contract to have in place prior to January 2017. Items being discussed and developed include the scope of work, bidder qualifications, complete inventories of all our parks and open spaces, service standards for levels of service, customer service, and minimum requirements. This is a complex contract. It is important to have a well-developed bid package to ensure that the level of service and maintenance is consistent with the high standard that our City has set for our parks and facilities. Plans and specifications were recently prepared for the 2017 Park Maintenance Contract with review assistance from our Legal Department. The "bid package" for the park maintenance contract was put out to bid on September 30. Bids were due back to the City on October 21. Staff will provide an Administrative Report on this topic on November 15 and then bring a contract recommendation forward for approval on November 22. If you have any questions or need additional information please let me know. Thank you. 1