2017, 10-03 Study Session AGENDA
SPOKANE VALLEY CITY COUNCIL
STUDY SESSION FORMAT
Tuesday, October 3,2017 6:00 p.m.
CITY HALL COUNCIL CHAMBERS
10210 East Sprague Avenue,First Floor
(Please Silence Your Cell Phones During the Meeting)
DISCUSSION LEADER SUBJECT/ACTIVITY GOAL
CALL TO ORDER
ROLL CALL
ACTION ITEM:
1. Cary Driskell Second Reading Proposed Ordinance Approval Consideration
17-010—Sidewalk Snow Removal
[public comment]
NON-ACTION ITEMS:
2.Mark Calhoun; and Spokane Regional Health District Discussion/Information
Dr. Lutz
3.Mike Stone CenterPlace Great Room Bid Discussion/Information
4. Chelsie Taylor Proposed 2017 Budget Amendment Discussion/Information
5. Erik Lamb Amendment to Procurement Code Discussion/Information
6.John Hohman, Washington State Department of Discussion/Information
Gloria Mantz Transportation Grant Program Status
7. Erik Lamb State Feasibility Study of Home Growing Discussion/information
Recreational Marijuana
8.Mark Calhoun Draft 2018 Legislative Agenda Discussion/Information
9.Mayor Higgins Advance Agenda Discussion/Information
10. Information Only (will not be reported or discussed): Community Development Block Grant
11.Mayor Higgins Council Check in Discussion/Information
12.Mark Calhoun City Manager Comments Discussion/Information
ADJOURN
Study Session Agenda,October 3,2017 Page 1 of 1
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval:
Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing
❑ information ❑ admin. report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: Second reading —Ordinance 17-010—Sidewalk Snow Removal.
GOVERNING LEGISLATION: SVMC 7.05.040(C); RCW 35A.11.020.
PREVIOUS COUNCIL ACTION TAKEN: Adoption of nuisance provisions in 2003, amended
over the years, most recently in 2012; February 23, 2016, staff presented potential options
regarding the removal of accumulations of snow and ice from public sidewalks, Council
requested a proposed ordinance for further discussion. August 16, 2016, presentation on a
proposed ordinance; September 13, 2016, Council discussed draft code language, requested
additional information and formed an ad hoc committee to identify other potential options to deal
with removal of sidewalk snow and ice. Administrative report January 17, 2017 to update
Council on the work of the committee; administrative report February 21, 2017 to summarize
options discussed previously to develop proposed plan. Administrative report April 18, 2017.
Administrative report June 27, 2017. First reading August 8, 2017. Second reading August 22,
2017 (not adopted). Administrative report September 26, 2017.
BACKGROUND: At the administrative report September 26, 2017, the Council requested that
staff revise the prior draft Ordinance 17-010 so that it reflects exclusion of enforcing Tier II areas
identified by the draft ordinance, relating to residentially-zoned areas. A majority of the Council
did not have any additional requested changes.
Additionally, based on prior comments from Councilmembers, staff did additional research
regarding the requirements of the Americans with Disabilities Act for sidewalk snow removal.
The prior draft required clearance of at least 42 inches of snow. The additional research
revealed that requirement for snow removal is only 36 inches, rather than 42 as previously
believed. The discrepancy resulted from the fact there are several minimum requirements in the
ADA, depending on the specific issue. We have clarity on this now, however, and are pleased
to be able to reduce the minimum width to 36 inches.
Please note that the redline portion of the draft ordinance reflect changes from the last version
to this version, and will be removed prior to finalization if approved.
OPTIONS: Adopt Ordinance 17-010 as drafted; or (2) take other action as appropriate.
RECOMMENDED ACTION OR MOTION: I move we approve Ordinance 17-010 relating to
sidewalk snow removal.
BUDGET/FINANCIAL IMPACTS: Unknown.
STAFF CONTACT: Cary P. Driskell, City Attorney.
ATTACHMENTS: Proposed Ordinance 17-010 relating to sidewalk snow removal.
Page 1 of 1
DRAFT
CITY OF SPOKANE VALLEY
SPOKANE COUNTY,WASHINGTON
ORDINANCE NO. 17-010
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON,ADOPTING CHAPTER 7.45 OF THE SPOKANE VALLEY MUNICIPAL
CODE RELATING TO SNOW AND ICE ON PUBLIC SIDEWALKS,AMENDING SPOKANE
VALLEY MUNICIPAL CODE 7.05.040(C)(3),AND OTHER MATTERS RELATING THERETO.
WHEREAS, the City of Spokane Valley previously adopted several provisions relating to the use
and obstruction of sidewalks in the City within the Spokane Valley Municipal Code (SVMC); and
WHEREAS, the accumulation of snow and ice on public sidewalks obstructs pedestrian traffic
and creates an impediment to commercial activity. Allowing snow and ice to accumulate increases the
likelihood that pedestrians will suffer injury while traveling on public sidewalks. Additionally, the
obstruction may force pedestrians off public sidewalks and into the path of motorized traffic in attempts
to find a safer route of travel. Finally, accumulations of snow and ice pose a significant hazard to school-
aged children who require safe use of the public sidewalks to travel to and from school; and
WHEREAS,the City has determined that it is appropriate to protect the life,health, and safety of
its citizens by adopting regulations regarding the removal of snow and ice from sidewalks. Such
regulations are within the police power granted to cities by Article XI, Section 11 of the Washington State
Constitution and those vested in legislative bodies of noncharter code cities by RCW 35A.11.020; and
WHEREAS, as a result of the limited space in which to store accumulations of snow and ice
being plowed from the streets, and in an attempt to conserve limited financial resources, the City Council
is exercising its legislative policy-making discretion in allowing City snowplow crews to push snow and
ice from the streets into bike lanes and along curbs where it may melt over time; and
WHEREAS, setting up and implementing this new sidewalk snow removal program, including
SVMC provisions, is anticipated to take a significant amount of time and effort. As a consequence, the
City Council desires to only adopt enforcement regarding Tier I until such time as the Council takes
further action to amend chapter 7.45 SVMC; and
WHEREAS, the City desires to amend SVMC 7.05.040(C)(3) to remove (C)(3) regarding
accumulations of snow and ice on public sidewalks as a nuisance because a violation will now be
classified as an infraction.
NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington ordains as
follows:
Section 1. Amendment. Spokane Valley Municipal Code 7.05.040 is hereby amended as follows:
7.05.040 Nuisances prohibited
No person, firm, or entity shall erect, contrive, cause, continue, maintain, or permit to exist any
public nuisances within the City, including any public rights-of-way abutting a person, firm, or
entity's property. Prohibited public nuisances include,but are not limited to:
Ordinance 17-010 Adopting SVMC 7.45—Snow and Ice on Public Sidewalks Page 1 of 5
DRAFT
C. Sidewalks.
1. Any protrusion, awning, or overhang that inhibits or obstructs use of a public walkway or
sidewalk.
2. Any object, construction, or damage that inhibits or obstructs the surface use of a public
walkway or sidewalk.
3. Snow or ice not removed from a public sidewalk within a reasonable time.
34. Accumulations of dirt or debris not removed from a public sidewalk.
Section 2. Adopting Spokane Valley Municipal Code chapter 7.45. A new chapter 7.45 is hereby
adopted as follows:
7.45.010—Purpose and Authority.
The purpose of chapter 7.45 SVMC is to regulate accumulations of snow and ice on sidewalks.
This regulation is undertaken in order to promote the safe and efficient movement of pedestrian
traffic on sidewalks within City limits and to promote greater economic activity. The provisions
of this chapter are adopted pursuant to RCW 35A.11.020, and are to promote the health, safety,
and welfare of the citizens of the City.
7.45.020—Definitions.
Terms used within this chapter are defined as follows:
"Accumulations of snow and ice"means snow and ice deposited by natural or artificial sources.
"Artificial sources" means operations which result from human efforts that cause snow or ice to
accumulate. These include,but are not limited to:
1. Snow removal operations conducted by the City; and
2. Snow removal operations conducted by private individuals or businesses.
"Natural sources" means any natural occurrence which causes snow and/or ice to accumulate.
These include,but are not limited to:
1. Snow storms; and
2. Freezing rain.
"Sidewalks" means public sidewalks and does not include those sidewalks located entirely on
private property.
"Removal area"means areas classified Tier I priority or Tier II priority.
"Tier I priority" areas include:
1. "Safe Route(s)to School" as delineated upon the official map, entitled Attachment A—
Sidewalk Snow Removal Map; and
2. "Commercial, retail, and industrial areas" that currently include the following zoning
districts as delineated on the official zoning map of the City:
MU Mixed Use District
CMU Corridor Mixed Use District
P/OS Parks/Open Space
NC Neighborhood Commercial District
Ordinance 17-010 Adopting SVMC 7.45—Snow and Ice on Public Sidewalks Page 2 of 5
DRAFT
RC Regional Commercial District
I Industrial District
IMU Industrial Mixed Use
"Tier II priority" areas include:
"Residential areas" which currently include the following zoning districts, as delineated
on the official zoning map of the City:
R-1 Single-Family Residential Estate District.
R-2 Single-Family Residential Suburban District.
R-3 Single-Family Residential Urban District.
MF Multifamily Residential District.
7.45.030—Duty to Remove Snow and Ice from Sidewalks.
A. The owner or occupant of any real property located within or along a removal area shall
remove or cause to be removed all accumulations of snow and ice exceeding three inches from
the sidewalks adjacent to the property so that a minimum 4236 inch path for pedestrian travel is
created pursuant to the Americans with Disability Act, 42 U.S.C. §§ 12131-12164.
B. Accumulations of snow and ice exceeding three inches shall be removed from the sidewalk
within 48 hours after the event causing it to accumulate has ceased.
C. Tier I priority areas are the only areas which may be enforced until future action by the City
Council to approve enforcement of Tier II areas shall be enforced prior to Tier II priority areas
being enforced.
7.45.040—Amnesty Periods.
A. In the event accumulations of snow and ice are deposited in a manner or volume that makes
their immediate removal impracticable, the City Manager may announce periods of amnesty
during which failure to remove the accumulations of snow and ice will not result in a violation
pursuant to SVMC 7.45.060.
B. The announcement shall be accompanied by a public notice stating:
1. The circumstances necessitating the amnesty period; and
2. The amnesty period's duration,including the date and time that it will end.
C. The City Manager may extend the amnesty period by issuing an additional announcement and
public notice pursuant to SVMC 7.45.040(B).
7.45.050—Improper Removal.
Removing and depositing snow and ice in a manner which obstructs or creates an obstruction to
vehicular or pedestrian traffic constitutes the misdemeanor of disorderly conduct pursuant to
SVMC 8.25.030 and RCW 9A.84.030. This section shall not constitute a separate misdemeanor
violation. The City, in exercising its policy-making discretion,may choose to push snow and ice
with plows from the travelled streets onto the edges of those streets where it may melt over time,
and this shall not be considered improper removal.
7.45.060—Penalties.
Ordinance 17-010 Adopting SVMC 7.45—Snow and Ice on Public Sidewalks Page 3 of 5
DRAFT
A. Any person or business found in violation of SVMC 7.45.030 shall be found to have
committed a Class 4 civil infraction, and shall be subject to the monetary penalties set forth in
RCW 7.80.120, as adopted or subsequently amended, including any applicable statutory
assessments.
B. After a citation has been issued, the violator shall have 48 hours to clear accumulated snow
and ice from the sidewalk before an additional citation may be issued.
C. Any person or business found in violation of SVMC 7.45.030 for a third time within a 12
month period, and all subsequent violations in that 12 month period, shall be found to have
committed a Class 3 civil infraction, and shall be subject to the monetary penalties set forth in
RCW 7.80.120, as adopted or subsequently amended, including any applicable statutory
assessments.
7.45.070—Defense for Violation.
It shall be a defense to a violation of SVMC 7.45.030 if:
1. The subject property is occupied as a residence,regardless of zoning designation;
2. The violator is 65 years or older, or possesses a physical disability that has been
verified by a medical doctor which prevents them from removing accumulations of snow
and ice from the sidewalk; and
3. The violator can provide documentation that shows reasonable efforts to obtain snow
removal services were made but were unsuccessful.
7.45.080—Educational Program.
The City Manager shall adopt and maintain a comprehensive program to educate the public about
the importance of snow and ice removal from sidewalks and the enforcement requirements
contained in this chapter, as well as lists as appropriate regarding potential resources that
residents and businesses may choose to utilize at their discretion for removal of sidewalk snow
and ice.
Section 3. Severability. If any section, sentence,clause,or phrase of this Ordinance should be held to be
invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall
not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this
Ordinance.
Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of
publication of this Ordinance or a summary thereof in the official newspaper of the City.
Passed this day of October,2017.
ATTEST: L.R. Higgins,Mayor
Christine Bainbridge, City Clerk
Approved As To Form:
Ordinance 17-010 Adopting SVMC 7.45—Snow and Ice on Public Sidewalks Page 4 of 5
DRAFT
Office of the City Attorney
Date of Publication:
Effective Date:
Ordinance 17-010 Adopting SVMC 7.45—Snow and Ice on Public Sidewalks Page 5 of 5
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 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 Health District
GOVERNING LEGISLATION:
PREVIOUS COUNCIL ACTION TAKEN:
BACKGROUND: On June 16, 2017, Dr. Bob Lutz was selected as Spokane Regional Health
District's new administrator. Prior to his selection, Dr. Lutz was Rockwood Health's urgent care
program clinical director. Dr. Lutz has been on the Health District Board for the last eight years.
In addition to being a medical doctor, he has a master's degree in public health and has been a
board member for the National Association of Local Boards of Health.
"The health officer provides leadership for the protection of public health, enforcement of public
health regulations, and serves as an advisor on matters affecting community health and safety to
elected and appointed officials, members of the medical profession, and the public." SRHD News
June 22, 2017.
Dr. Lutz will give a self-introduction, and then briefly discuss some of the programs and services
of the Regional Health District.
OPTIONS: discussion only
RECOMMENDED ACTION OR MOTION: discussion only
BUDGET/FINANCIAL IMPACTS: n/a
STAFF CONTACT: City Manager Mark Calhoun
ATTACHMENTS: For illustration purposes, two slides from SRHD
Spokane Regional Health District
"what we as a society do collectively to assure the conditions in which
people can be healthy" (IOM, 1988:1)
Individual
Enhancing skills,knonledge,
attitudes and motivation
-----
Interpersonal
Increasing support horn
blends,family and peers
_AI AT
Organizational sum
Changingpolicles and NES.
practices of organizations
Community
Collaborating and creating
partner:hips to effect change
In the community
•
Public Policy
Developing,Influencing,and
enforcing local,state and
nahon.il he,
1
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval: El
Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing
❑ information ® admin. Report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: CenterPlace Great Room Sound and Video System Update
GOVERNING LEGISLATION:
PREVIOUS COUNCIL ACTION TAKEN: The City Council adopted the 2017 Budget which
included funding for this capital improvement project at CenterPlace Regional Event Center.
BACKGROUND: CenterPlace Regional Event Center opened in September of 2005. At that
time, the Great Room contained a state-of-the-art presentation and sound system. This system
was marketed and was influential in customers booking their events at CenterPlace. Fast forward
12 years and technology has drastically changed. The original system is out of date and the
quality of its performance leaves much to be desired. The upgrading of the sound and video
system in the Great Room has been a priority of the Department for several years. The City
Council felt strongly enough on this topic to include a budget for this upgrade in the 2017 City
Budget.
The City hired a consultant with the technical expertise to assist the staff in the development of
plans and specifications for this project which included the video system, audio system, integrated
system control and an overflow room system. The project was advertised on August 25, 2017.
Bids were due on September 8, 2107. As shown on the bid tabulation, three bids were received
and staff has completed its review and evaluation of the bids. Staff will be providing an overview
of the bid process and bid results along with a recommendation for awarding the contract.
OPTIONS: Council discretion.
RECOMMENDED ACTION OR MOTION: Seeking Council consensus to bring a motion
consideration forward on October 10, 2017 for award of a contract. Assuming we receive Council
approval, installation will take place during November 2017.
BUDGET/FINANCIAL IMPACTS: The nonrecurring portion of the 2017 General Fund Budget
included $345,000 for this project that was to be applied towards the design, acquisition and
installation of equipment for an upgraded audio-visual system at CenterPlace. With all costs
currently known of or contemplated, this project will be completed within budget parameters.
STAFF CONTACT: Michael D. Stone, CPRP, Director of Parks and Recreation
ATTACHMENTS: Bid Tabulation
SpCITIoFkaneParks and Recreation Department
2426 N. Discovery Place ♦ Spokane Valley, WA 99216
509.688.0300 ♦ Fax: 509.688.0188 • parksandrec@spokanevalley.org
Valleyk
BID TABULATION -CenterPlace Sound and Video System Project
BID DUE DATE -September 8, 2017, 12:00 PM local time
AVI-SPL/ EVCO Sound
Signal Proton360
& Electronics
Perfection Communications
Limited, Inc. Inc.
BASE BID $277,379.31 $279,500.00 $205,272.94
SALES TAX $24,409.38 $24,596.00 $18,064.02
Total $301,788.69 $304,096.00 $223,336.96
ALTERNATE 1 n/a n/a n/a
SALES TAX
Total
TOTAL BID I $301,788.691 $304,096.001 $223,336.96
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 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 2017 Budget Amendment.
GOVERNING LEGISLATION: In order for the City to amend an adopted budget, State law
requires the Council to approve an ordinance that appropriates additional funds.
PREVIOUS COUNCIL ACTION TAKEN: The Council last took formal action on the 2017
Budget when it was amended on June 6, 2017 for the first time.
BACKGROUND: Since the amendment of the 2017 Budget on June 6, 2017, a number of
events have transpired in the normal course of operations that necessitate a second 2017
Budget amendment. They include:
#001 - General Fund
Provide additional appropriations (expenditures) of$133,700 comprised of:
• $6,700 increase in professional services for a consultant contract to evaluate sites within the
City for a potential farmer's market as was approved by Council at the May 30, 2017 Council
meeting.
• $15,000 increase in pool repair and maintenance costs to replace the pump at the Terrace
View Pool after the unexpected failure of the existing pump.
• Additional $77,000 to purchase two pieces of networking equipment with greater storage
capacity. With the City's reorganization this year, we've seen instances of data on the
networking being duplicated as different staff members need access to information that they
did not need previously. The result is that the City saw a dramatic increase in the storage
capacity being used by the City. Also, as the City continues to reconfigure its network to
accommodate for the reorganization, we anticipate that more duplication will occur before
we settle back into a more average level of activity. These purchases are funded through a
transfer in from the Equipment Rental and Replacement Fund #501, which has adequate
funds available that were previously set aside for the replacement of networking equipment.
• Additional $35,000 for park benches, shade structures, and other park equipment. These
purchases are funded through a donation from a citizen.
Increase revenues by $120,000 comprised of:
• $8,000 increase in transfers in from the Civic Facilities Capital Projects Fund #310 for
interest earned on amounts that were set aside to cover lease payments in years in which
the City had both lease payments and bond payments on the new City Hall building.
• $77,000 transfer in from the Equipment Rental and Replacement Fund #501 to purchase
networking equipment as described above.
• $35,000 donation from a citizen for park benches, shade structures, and other park
equipment.
Page 1 of 4
#104 — Hotel / Motel Tax—Tourism Facilities Fund
Increase revenues by $250,000 reflecting a transfer in from the Hotel/Motel Fund #105 that was
approved through the lodging tax process at the December 13, 2016 Council meeting.
#105 - Hotel / Motel Tax Fund
Net change of $0 in expenditures; however, transfers out to the Hotel/Motel Tax — Tourism
Facilities Fund #104 are increased by $250,000 and tourism promotion costs are reduced by
$250,000, as was approved during the lodging tax process at the December 13, 2016 Council
meeting.
#301 — REET 1 Capital Projects Fund
Decrease expenditures by $230,079 due to a reduction in expected transfers out to the Railroad
Grade Separation Projects Fund #314 related to the Barker Grade Separation project. Grant
proceeds are expected to be expended prior to City REET funds to the extent possible.
Real Estate Excise Tax (REET) revenue is increased by $200,000 based on revised revenue
projections.
#302 — REET 2 Capital Projects Fund
Real Estate Excise Tax (REET) revenue is increased by $200,000 based on revised revenue
projections.
#303 — Street Capital Projects Fund
This fund is being amended to reflect estimated actual progress on a number of projects,
including the Sullivan Rd. Bridge, intersection improvements at 8th and Carnahan, and the
reconstruction of Euclid Ave. from Flora to Barker, as well as updates to estimated project costs.
Expenditures and revenues are increased by $1,969,840.
#309 — Park Capital Projects Fund
This fund is being amended to reflect estimated actual progress on a number of projects. The
decreases seen in this fund are primarily a result of the construction of the Sullivan to Corbin
segment of the Appleway Trail being shifted to 2018.
Changes include decreases in expenditures/appropriations in the amount of $1,614,900,
including:
• An increase of $1,600 to the Appleway Trail — Pines to Evergreen segment to true up to
estimated expenditures for the year.
• A decrease of $1,617,000 to the Appleway Trail — Sullivan to Corbin segment to move
construction to 2018.
• An increase of$500 for project closeout on the Browns Park Splashpad.
Revenues will decrease by $1,617,700, including:
• A decrease of $1,354,000 in grant proceeds for the Appleway Trail primarily due to the
construction on the Sullivan to Corbin segment being moved to 2018.
• A decrease of $263,700 in transfers in from the Capital Reserve Fund #312 for the
Appleway Trail primarily due to the construction on the Sullivan to Corbin segment being
moved to 2018.
Page 2 of 4
#310 — Civic Facilities Capital Projects Fund
Expenditures increase by $8,000 in transfers out to the General Fund #001 relating to interest
earned on amounts that had been set aside for lease payments in years in which the City had
both lease payments and bond payments on the new City Hall building. Revenues increase by
$6,300 reflecting interest earnings exceeding original estimates.
#312 — Capital Reserve Fund
• Expenditures/appropriations of$283,817 include:
o An increase of $38,526 for the siting of sculptures and additional lighting requirements
for the sculptures at the new City Hall building. This was approved by Council at the May
23, 2017 Council meeting.
o An increase of$440,000 in transfers out to the Street Capital Projects Fund #303 for the
Sullivan Rd West Bridge. This is based on scheduling and is not an increase in total
contribution to this project as the project is still anticipated to come in within budget. This
is a timing issue related to having to pay upfront for project costs prior to receiving grant
reimbursement for those costs.
o An increase of $45,320 in transfers out to the Street Capital Projects Fund #303 for the
purchase of right-of-way related to the 8th and Carnahan intersection improvements
project.
o An increase of $23,671 in transfers out to the Street Capital Projects Fund #303 for the
Euclid Ave — Flora to Barker project.
o A decrease of $263,700 in transfers out to the Parks Capital Projects Fund #309 for the
Appleway Trail —Sullivan to Corbin segment.
#313 — City Hall Construction Fund
Expenditures are increased by $755,882 for construction on the new City Hall building to reflect
expenditures for the project moving into 2017 from 2016. This does not represent an increase in
total project cost as the project is still expected to come in within budget. Revenues are
increased by $27,000 for investment interest earned greater than estimated.
#314 — Railroad Grade Separation Fund
Expenditures decrease by $1,470,000, and revenues decrease by $420,000. These decreases
are related to updated timing of the design work that is currently being done on both the Barker
and Pines Grade Separation Projects.
#501 — Equipment Rental & Replacement Fund
Expenditures/appropriations increased by $83,400, including:
• An increase of $6,400 related to the purchase of equipment to perform routine vehicle
maintenance at the City's Maintenance Shop.
• Additional $77,000 transfer out to the General Fund #001 to purchase networking equipment
as described above under the General Fund expenditure discussion.
Page 3 of 4
The 2017 Budget amendment reflects the changes noted above and will affect 12 funds
resulting in total revenue increases of $735,440 and appropriation/expenditure decreases of
$80,340.
Revenue Expenditure
Fund Fund Increase Increase
No. Name (Decrease) (Decrease)
001 General Fund 120,000 133,700
104 Hotel / Motel Tax- Tourism Facilities Fund 250,000 0
105 Hotel / Motel Tax Fund 0 0
301 REET 1 Capital Projects Fund 200,000 (230,079)
302 REET 2 Capital Projects Fund 200,000 0
303 Street Capital Projects Fund 1,969,840 1,969,840
309 Park Capital Projects Fund (1,617,700) (1,614,900)
310 Civic Facilities Capital Projects Fund 6,300 8,000
312 Capital Reserve Fund 0 283,817
313 City Hall Construction Fund 27,000 755,882
314 Railroad Grade Separation Projects Fund (420,000) (1,470,000)
501 Equipment Rental & Replacement Fund 0 83,400
735,440 (80,340)
OPTIONS: Future options are to accept the proposed amendments in whole or in-part.
RECOMMENDED ACTION OR MOTION: Staff seek Council consensus to move forward with
amendments to the 2017 Budget as presented. If Council concurs, we anticipate the following
calendar of events leading to Council approval of the amending ordinance.
• October 24, 2017 — Public hearing on the 2017 Budget Amendment.
• October 24, 2017 — First reading of Ordinance #17-013 amending the 2017 Budget.
• November 14, 2017—Second reading of Ordinance #17-013 amending the 2017 Budget.
BUDGET/FINANCIAL IMPACTS: This action amends the estimated revenues and
appropriations for the 2017 Budget that were adopted on November 8, 2016 and amended on
June 6, 2017. There are adequate funds available to pay for these amendments.
STAFF CONTACT: Chelsie Taylor, Finance Director
ATTACHMENTS:
• Fund level line-item detail of revenues and expenditures.
• Fund summaries for all funds affected by the proposed budget amendment.
Page 4 of 4
H:\Budget\2017Wmendment#2\2017 10 03 Admin Rprt\amendment no 2 detail
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget-Amendment#2
Line Item Detail
Account Account Initial Amendment Amended
Description Number Description/Justification Budget No 2 Budget
#001 -General Fund
Recurring Expenditures
Professional Services 001.076.000.576.80.41.05 - Farmer's Market site evaluation 10,000 6,700 16,700
Equipment Repair&Maintenance 001.076.302.576.20.48.01 - Terrace View Pool pump replacement 2,500 15,000 17,500
Total recurring expenditures 21,700
Nonrecurring Revenues
Transfers in-#310 (lease payments) 001.090.000.397.31.00 - Interest earnings on lease set-aside 490,500 8,000 498,500
Transfers in-#501 (networking equip) 001.090.000.397.50.10 - Update networking equipment due to storage
capacity issues 0 77,000 77,000
Miscellaneous(donation) 001.076.000.367.00.00 - Donation for park benches and other structures 0 35,000 35,000
Total nonrecurring revenues 120,000
Nonrecurring Expenditures
IT Capital Replacements 001.090.099.594.18.64.11 - Update networking equipment due to storage
capacity issues 100,000 77,000 177,000
Parks&Rec (benches, shade structures, et 001.076.099.576.80.41.05 - Donation for park benches and other structures 0 35,000 35,000
Total nonrecurring expenditures 112,000
Total of all General Fund revenues 120,000
Total of all General Fund expenditures 133,700
#104-Hotel/Motel Tax-Tourism Facilities Fund
Revenues
Transfers in-#105 104.000.000.397.10.50 - LTAC set aside in 2017 for sporting venue 0 250,000 250,000
Total revenues 250,000
#105-Hotel/Motel Tax Fund
Expenditures
Transfers out-#104 105.105.000.597.10.00.40 - LTAC set aside in 2017 for sporting venue 0 250,000 250,000
Tourism Promotion 105.105.000.557.30.41.00 - LTAC set aside in 2017 for sporting venue 604,000 (250,000) 354,000
Total expenditures 0
Page 1 of 4
H:\Budget\2017Wmendment#2\2017 10 03 Admin Rprt\amendment no 2 detail
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget-Amendment#2
Line Item Detail
Account Account Initial Amendment Amended
Description Number Description/Justification Budget No 2 Budget
#301 -REET 1 Capital Projects Fund
Revenues
REET 1 - 1st Quarter Percent 301.301.000.318.34.00 - Revised estimate based on projections 800,000 200,000 1,000,000
Total revenues 200,000
Expenditures
Transfers out-#314 301.000.000.597.31.00.40 - Barker Grade Separation-project design 280,079 (230,079) 50,000
Total expenditures (230,079)
#302-REET 2 Capital Projects Fund
Revenues
REET 2-2nd Quarter Percent 302.302.000.318.35.00 - Revised estimate based on projections 800,000 200,000 1,000,000
Total revenues 200,000
#303-Street Capital Projects Fund
Revenues
Grant Proceeds 303.000.xxx.330.00.00 - Revised project schedules 3,756,320 529,980 4,286,300
Developer Fees 303.000.xxx.367.12.01 - Revised project schedules 40,097 930,869 970,966
Transfers in-#312 303.303.155.397.31.20 - Sullivan Rd. W. Bridge Replacement 10,000 440,000 450,000
Transfers in-#312 303.000.247.397.31.20 - 8th &Carnahan intersection improvements 193,000 45,320 238,320
Transfers in-#312 303.000.251.397.31.20 - Euclid Ave- Flora to Barker 1,750,000 23,671 1,773,671
Total revenues 1,969,840
Expenditures
Capital outlay 303.303.155.595.xx.xx.xx - Sullivan Rd. W. Bridge Replacement 10,000 1,053,370 1,063,370
Capital outlay 303.000.247.595.xx.xx.xx - 8th &Carnahan intersection improvements 193,000 45,320 238,320
Capital outlay 303.000.251.595.xx.xx.xx - Euclid Ave. - Flora to Barker 1,750,000 871,150 2,621,150
Total expenditures 1,969,840
Page 2 of 4
H:\Budget\2017Wmendment#2\2017 10 03 Admin Rprt\amendment no 2 detail
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget-Amendment#2
Line Item Detail
Account Account Initial Amendment Amended
Description Number Description/Justification Budget No 2 Budget
#309-Park Capital Projects Fund
Revenues
Grant Proceeds 309.000.xxx.334.0270 - Appleway Trail segments revised schedule 3,217,267 (1,354,000) 1,863,267
Transfer in-#312 309.000.xxx.397.31.20 - Appleway Trail segments revised schedule 561,915 (263,700) 298,215
Total revenues (1,617,700)
Expenditures
Capital outlay 309.000.227.595.xx.xx.xx - Appleway Trail -Pines to Evergreen 1,925,957 1,600 1,927,557
Capital outlay 309.000.237.595.xx.xx.xx - Appleway Trail -Sullivan to Corbin 1,853,225 (1,617,000) 236,225
Capital outlay 309.000.242.595.xx.xx.xx - Browns Park Splashpad 0 500 500
Total expenditures (1,614,900)
#310-Civic Facilities Capital Projects Fund IMP7
Revenues
Investment Interest 310.310.000.361.11.00 - Additional interest earnings beyond estimate 1,200 6,300 7,500
Total revenues 6,300
Expenditures
Transfer out-#001 310.310.000.597.00.00.10 - Interest earnings on lease set-aside 490,500 8,000 498,500
Total expenditures 8,000
#312-Capital Reserve Fund
Expenditures
Capital Outlay 312.000.215.594.18.xx.xx - City Hall sculpture siting 0 38,526 38,526
Transfer to-#303 312.000.155.597.30.00.30 - Sullivan Road West Bridge 10,000 440,000 450,000
Transfer to-#303 312.000.247.597.30.00.30 - 8th and Carnahan intersection improvements 193,000 45,320 238,320
Transfer to-#303 312.000.251.597.30.00.30 - Euclid Ave- Flora to Barker 1,750,000 23,671 1,773,671
Transfer to-#309 312.000.237.597.30.00.90 - Appleway Trail -Sullivan to Corbin 301,910 (263,700) 38,210
Total expenditures 283,817
Page 3 of 4
H:\Budget\2017Wmendment#2\2017 10 03 Admin Rprt\amendment no 2 detail
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget-Amendment#2
Line Item Detail
Account Account Initial Amendment Amended
Description Number Description/Justification Budget No 2 Budget
#313-City Hall Construction Fund
Revenues
Investment Interest 313.000.000.361.11.00 - Interest earnings 0 27,000 27,000
Total revenues 27,000
Expenditures
Capital Outlay-City Hall 313.000.215.594.xx.xx.xx - City Hall Construction Costs 5,344,219 755,882 6,100,101
Total expenditures 755,882
#314-Railroad Grade Separation Projects Fund
Revenues
Grant Proceeds 314.000.xxx.333.20.20 - Revised project schedule 489,921 (189,921) 300,000
Transfer in-#301 314.000.143.397.30.10 - Revised project schedule 280,079 (230,079) 50,000
Total revenues (420,000)
Expenditures
Capital Outlays 314.000.143.595.xx.xx.xx - Barker Rd/BNSF Grade Separation 770,000 (470,000) 300,000
Capital Outlays 314.000.223.595.xx.xx.xx - Pines Rd Underpass @ BNSF&Trent 1,683,000 (1,000,000) 683,000
Total expenditures (1,470,000)
#501 -Equipment Rental&Replacement Fund
Expenditures
Small tools&minor equipment 501.000.000.548.70.35.01 - Equipment for vehicle servicing at shop 0 6,400 6,400
Transfer out-#001 501.501.000.597.00.00.10 - Networking equipment in General Fund 0 77,000 77,000
Total expenditures 83,400
Totals Across all Funds
Total revenues 735,440
Total expenditures (80,340)
Page 4 of 4
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
#001 -GENERAL FUND
RECURRING ACTIVITY
Revenues
Property Tax 11,614,500 0 0 11,614,500
Sales Tax 19,852,100 0 0 19,852,100
Sales Tax-Public Safety 919,000 0 0 919,000
Sales Tax-Criminal Justice 1,669,000 0 0 1,669,000
Gambling Tax and Leasehold Excise Tax 341,500 0 0 341,500
Franchise Fees/Business Registration 1,200,000 0 0 1,200,000
State Shared Revenues 2,104,600 0 0 2,104,600
Fines and Forfeitures/Public Safety 1,361,000 0 0 1,361,000
Community and Public Works 0 0 0 0
Community Development 1,449,300 0 0 1,449,300
Recreation Program Revenues 640,900 0 0 640,900
Miscellaneous Department Revenue 94,000 0 0 94,000
Miscellaneous&Investment Interest 133,500 0 0 133,500
Transfers in-#101 (street admin) 39,700 0 0 39,700
Transfers in-#105(h/m tax-CP advertising) 30,000 0 0 30,000
Transfers in-#402(storm admin) 13,400 0 0 13,400
Total Recurring Revenues 41,462,500 0 0 41,462,500
Expenditures
City Council 542,872 0 0 542,872
City Manager 724,435 0 0 724,435
City Attorney 509,694 6,300 0 515,994
Public Safety 24,950,372 0 0 24,950,372
Deputy City Manager 750,277 2,000 0 752,277
Finance/IT 1,282,460 0 0 1,282,460
Human Resources 262,417 0 0 262,417
Public Works 981,932 (60,300) 0 921,632
City Hall Operations and Maintenance 303,918 0 0 303,918
Community&Public Works-Engineering 0 0 0 0
Community&Public Works-Economic Dev 0 0 0 0
Community&Public Works-Building&Planning 0 0 0 0
Community&Economic Dvlpmnt-Admin 282,962 (54,500) 0 228,462
Community&Economic Dvlpmnt-Econ Dev 683,632 9,200 0 692,832
Community&Economic Dvlpmnt-Dev Svc 1,418,984 14,400 0 1,433,384
Community&Economic Dvlpmnt-Building 1,390,834 90,900 0 1,481,734
Parks&Rec-Administration 288,964 1,100 6,700 296,764
Parks&Rec-Maintenance 861,350 0 0 861,350
Parks&Rec-Recreation 235,995 10,300 0 246,295
Parks&Rec-Aquatics 457,350 25,000 15,000 497,350
Parks&Rec-Senior Center 95,916 0 0 95,916
Parks&Rec-CenterPlace 891,458 10,500 0 901,958
General Government 1,240,850 0 0 1,240,850
Transfers out-#204(2016 LTGO debt service) 397,350 33,280 0 430,630
Transfers out-#309(park capital projects) 160,000 0 0 160,000
Transfers out-#311 (pavement preservation) 953,200 0 0 953,200
Transfers out-#501 (CenterPlace kitchen reserve) 36,600 0 0 36,600
Transfers out-#502(insurance premium) 350,000 0 0 350,000
Total Recurring Expenditures 40,053,822 88,180 21,700 40,163,702
Recurring Revenues Over(Under)
Recurring Expenditures 1,408,678 (88,180) (21,700) 1,298,798
Page 1 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
#001 -GENERAL FUND-continued
NONRECURRING ACTIVITY
Revenues
Grant Proceeds-Dept of Commerce 0 114,200 0 114,200
Transfers in-#106(solid waste repayment) 40,425 0 0 40,425
Transfers in-#310(lease in excess of debt service) 490,500 0 8,000 498,500
Transfers in-#501 (networking equipment) 0 0 77,000 77,000
Miscellaneous(donation) 0 0 35,000 35,000
Total Nonrecurring Revenues 530,925 114,200 120,000 765,125
Expenditures
General Government-IT capital replacements 100,000 0 77,000 177,000
City Attorney(part-time attorney furniture) 0 0 0 0
Public Safety(full facility generator) 0 0 0 0
Deputy City Manager(Q-Alert software) 0 0 0 0
Parks&Rec(Flooring in Great Room&Dining Room) 0 0 0 0
Parks&Rec(CP reseal two restroom floors) 0 0 0 0
Transfers out-#309(CP outdoor venue Phase 1) 0 0 0 0
Transfers out-#309(Browns Park lighting&path) 0 0 0 0
Transfers out#312(misc capital projects) 0 0 0 0
Community&Econ Dev(retail recruitment) 50,000 0 0 50,000
City Hall lease payment(2017 final year) 513,100 0 0 513,100
Economic Development(NE industrial PAO) 0 114,200 0 114,200
Parks&Rec(pool drain pipe&gutter line repairs) 12,000 0 0 12,000
Parks&Rec(replace Great Room audio/visual) 345,000 0 0 345,000
Parks&Rec(replace carpet at CenterPlace) 24,750 0 0 24,750
Parks&Rec(Browns Park water hookup) 0 10,000 0 10,000
Parks&Rec(Browns Park electrical hookup) 0 20,000 0 20,000
Parks&Rec(benches,shade structures,etc.) 0 0 35,000 35,000
Police Department-CAD/RMS 145,000 0 0 145,000
Transfers out-#122(replenish reserve) 0 258,000 0 258,000
Transfers out-#312('15 fund bal>50%) 0 3,003,929 0 3,003,929
Transfers out-#314(Pines underpass design) 1,200,000 0 0 1,200,000
Total Nonrecurring Expenditures 2,389,850 3,406,129 112,000 5,907,979
Nonrecurring Revenues Over(Under)
Nonrecurring Expenditures (1,858,925) (3,291,929) 8,000 (5,142,854)
Excess(Deficit)of Total Revenues
Over(Under)Total Expenditures (450,247) (3,380,109) (13,700) (3,844,056)
Beginning unrestricted fund balance 29,073,972 29,073,972
Ending unrestricted fund balance 28,623,725 25,229,916
Fund balance as a percent of recurring expenditures 71.46% 62.82%
Page 2 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
SPECIAL REVENUE FUNDS
#104-HOTEL/MOTEL TAX-TOURISM FACILITIES FUND
Revenues
Hotel/Motel Tax 377,000 0 0 377,000
Investment Interest 0 0 0 0
Transfers in-#105 0 0 250,000 250,000
Total revenues 377,000 0 250,000 627,000
Expenditures
Capital Outlay 0 0 0 0
Total expenditures 0 0 0 0
Revenues over(under)expenditures 377,000 627,000
Beginning fund balance 571,232 571,232
Ending fund balance 948,232 1,198,232
#105-HOTEL/MOTEL TAX FUND
Revenues
Hotel/Motel Tax 580,000 0 0 580,000
Investment Interest 500 0 0 500
Total revenues 580,500 0 0 580,500
Expenditures
Transfers out-#001 30,000 0 0 30,000
Transfers out-#104 0 0 250,000 250,000
Tourism Promotion 604,000 0 (250,000) 354,000
Total expenditures 634,000 0 0 634,000
Revenues over(under)expenditures (53,500) (53,500)
Beginning fund balance 219,790 219,790
Ending fund balance 166,290 166,290
Page 3 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
CAPITAL PROJECTS FUNDS
#301 -REET 1 CAPITAL PROJECTS FUND
Revenues
REET 1 -Taxes 800,000 0 200,000 1,000,000
Investment Interest 1,700 0 0 1,700
Total revenues 801,700 0 200,000 1,001,700
Expenditures
Transfers out-#204 79,426 24,085 0 103,511
Transfers out-#303 437,002 0 0 437,002
Transfers out-#311 (pavement preservation) 660,479 0 0 660,479
Transfers out-#314(Barker Grade Separation) 280,079 0 (230,079) 50,000
Total expenditures 1,456,986 24,085 (230,079) 1,250,992
Revenues over(under)expenditures (655,286) (249,292)
Beginning fund balance 1,746,393 1,746,393
Ending fund balance 1,091,107 1,497,101
#302-REET 2 CAPITAL PROJECTS FUND
Revenues
REET 2-Taxes 800,000 0 200,000 1,000,000
Investment Interest 1,700 0 0 1,700
Total revenues 801,700 0 200,000 1,001,700
Expenditures
Transfers out-#204 79,425 24,085 0 103,510
Transfersout-#303 1,173,230 0 0 1,173,230
Transfers out-#311 (pavement preservation) 660,479 0 0 660,479
Total expenditures 1,913,134 24,085 0 1,937,219
Revenues over(under)expenditures (1,111,434) (935,519)
Beginning fund balance 2,300,560 2,300,560
Ending fund balance 1,189,126 1,365,041
Page 4 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
CAPITAL PROJECTS FUNDS-continued
#303-STREET CAPITAL PROJECTS FUND
Revenues
Grant Proceeds 3,756,320 0 529,980 4,286,300
Developer 40,097 0 930,869 970,966
Transfers in-#301 437,002 0 0 437,002
Transfers in-#302 1,173,230 0 0 1,173,230
Transfers in-#312-Sullivan Rd W Bridge 10,000 0 440,000 450,000
Transfers in-#312-Euclid Ave-Flora to Barker 1,750,000 0 23,671 1,773,671
Transfers in-#312-8th&Carnahan Intersection Improveme 0 193,000 45,320 238,320
Transfers in-#312-Indiana bus stops&crosswalks 0 0 0 0
Total revenues 7,166,649 193,000 1,969,840 9,329,489
Expenditures
123 Mission Ave. -Flora to Barker 500,000 0 0 500,000
141 Sullivan&Euclid PCC(PE&RW) 2,150,000 0 0 2,150,000
142 Broadway @ Argonne/Mullan PCC intersection 0 0 0 0
155 Sullivan Rd W Bridge Replacement 10,000 0 1,053,370 1,063,370
166 Pines Rd(SR27)&Grace Ave. Intersect Safety 333,224 0 0 333,224
167 Citywide Safety Improvements(bike/ped) 5,000 0 0 5,000
201 ITS Infill Project Phase 1 300,000 0 0 300,000
205 Sprague/Barker Intersection Improvement 40,097 0 0 40,097
207 Indiana&Evergreen Transit Access Imp 5,000 0 0 5,000
221 McDonald Rd Diet(16th to Mission) 5,000 0 0 5,000
222 Citywide Reflective Signal Backplates 36,000 0 0 36,000
229 32nd Ave Preservation Project 2,500 0 0 2,500
234 Seth Woodward Elem Sidewalk Improvement 5,000 0 0 5,000
238 Mirabeau Pkwy&Pines(SR-27)Traffic Signal 5,000 0 0 5,000
239 Bowdish Sidewalk-8th to 12th 471,342 0 0 471,342
247 8th&Carnahan Intersection Improvements 0 193,000 45,320 238,320
249 Sullivan/Wellesley Intersection 198,000 0 0 198,000
250 9th Ave. Sidewalk 240,000 0 0 240,000
251 Euclid Ave. -Flora to Barker 1,750,000 0 871,150 2,621,150
258 32nd Ave Sidewalk-SR27 to Evergreen 0 0 0 0
259 N. Sullivan Corridor ITS Project(PE start 2017) 110,486 0 0 110,486
263 Citywide Signal Backplates 0 0 0 0
Wellesley Sidewalk Project 0 0 0 0
Barker Road Widening 0 0 0 0
8th Ave Sidewalk 0 0 0 0
Mission Ave Sidewalk 0 0 0 0
Coleman Sidewalk 0 0 0 0
Argonne Reconstruction-Indiana to Montgom 0 0 0 0
Indiana bus stops&crosswalks 0 0 0 0
Contingency 1,000,000 0 0 1,000,000
Total expenditures 7,166,649 193,000 1,969,840 9,329,489
Revenues over(under)expenditures 0 0
Beginning fund balance 75,566 75,566
Ending fund balance 75,566 75,566
Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that the
were bid with the pavement preservation work.
Page 5 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
CAPITAL PROJECTS FUNDS-continued
#309-PARK CAPITAL PROJECTS FUND
Revenues
Grant Proceeds 3,217,267 0 (1,354,000) 1,863,267
Transfers in-#001 160,000 0 0 160,000
Transfers in-#312 561,915 0 (263,700) 298,215
Investment Interest 800 0 0 800
Total revenues 3,939,982 0 (1,617,700) 2,322,282
Expenditures
227 Appleway Trail(Pines to Evergreen) 1,925,957 0 1,600 1,927,557
237 Appleway Trail(Sullivan to Corbin) 1,853,225 0 (1,617,000) 236,225
Appleway Trail(Evergreen to Sullivan) 0 0 0 0
242 Browns Park Splash Pad 0 0 500 500
261 Edgecliff Park splash pad 125,000 0 0 125,000
CenterPlace outdoor venue-Phase 1 0 0 0 0
Browns Park lighting and pathway 0 0 0 0
Park signs(Sullivan,Park Rd,Balfour) 0 0 0 0
Total expenditures 3,904,182 0 (1,614,900) 2,289,282
Revenues over(under)expenditures 35,800 33,000
Beginning fund balance 111,714 111,714
Ending fund balance 147,514 144,714
#310-CIVIC FACILITIES CAPITAL PROJECTS FUND
Revenues
Investment Interest 1,200 0 6,300 7,500
Total revenues 1,200 0 6,300 7,500
Expenditures
Miscellaneous 0 0 0 0
Transfers out-#001 490,500 0 8,000 498,500
Total expenditures 490,500 0 8,000 498,500
Revenues over(under)expenditures (489,300) (491,000)
Beginning fund balance 1,333,159 1,333,159
Ending fund balance 843,859 842,159
Note: The fund balance in#310 includes$839,281.10 paid by the Library District for 2.82 acres at the Balfour Park site. If the District
does not succeed in getting a voted bond approved by October 2017 then the City may repurchase this land at the original sale
price of$839,285.10.
Page 6 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
CAPITAL PROJECTS FUNDS-continued
#312-CAPITAL RESERVE FUND
Revenues
Transfers in-#001 0 3,003,929 0 3,003,929
Transfers in-#313 0 0 0 0
Investment Interest 1,000 0 0 1,000
Total revenues 1,000 3,003,929 0 3,004,929
Expenditures
City Hall sculpture siting 0 0 38,526 38,526
Transfers out#303(Sullivan Rd W Bridge) 10,000 0 440,000 450,000
Transfers out#303(Euclid Ave-Flora to Barker) 1,750,000 0 23,671 1,773,671
Transfers out#303(8th&Carnahan Intersection) 0 193,000 45,320 238,320
Transfers out#303(Indiana bus stops&crosswalks) 0 0 0 0
Transfers out#309(Appleway Trail-Pines-Evergreen) 260,005 0 0 260,005
Transfers out#309(Appleway Trail-Sullivan-Corbin) 301,910 0 (263,700) 38,210
Transfers out#309(Appleway Trail-Evergreen-Sullivan) 0 0 0 0
Transfers out#314(Pines Grade Separation) 0 483,000 0 483,000
Total expenditures 2,321,915 676,000 283,817 3,281,732
Revenues over(under)expenditures (2,320,915) (276,803)
Beginning fund balance 4,310,362 4,310,362
Ending fund balance 1,989,447 4,033,559
#313-CITY HALL CONSTRUCTION FUND
Revenues
Investment Interest 0 0 27,000 27,000
Total revenues 0 0 27,000 27,000
Expenditures
Capital Outlay-City Hall 5,344,219 0 755,882 6,100,101
Transfers out-#312 0 0 0 0
Total expenditures 5,344,219 0 755,882 6,100,101
Revenues over(under)expenditures (5,344,219) (6,073,101)
Beginning fund balance 6,148,061 6,148,061
Ending fund balance 803,842 74,960
#314-RAILROAD GRADE SEPARATION PROJECTS FUND
Revenues
Grant Proceeds 489,921 0 (189,921) 300,000
Transfers in#001 1,200,000 0 0 1,200,000
Transfers in#301 280,079 0 (230,079) 50,000
Transfers in#312 0 483,000 0 483,000
Total revenues 1,970,000 483,000 (420,000) 2,033,000
Expenditures
143 Barker BNSF Grade Separation 770,000 0 (470,000) 300,000
223 Pines Rd Underpass 1,200,000 483,000 (1,000,000) 683,000
Total expenditures 1,970,000 483,000 (1,470,000) 983,000
Revenues over(under)expenditures 0 1,050,000
Beginning fund balance 0 0
Ending fund balance 0 1,050,000
Page 7 of 8
H:\Budget\2017\Amendment#2\2017 10 03 Admin Rprt\Budget Summary for Amended Funds
CITY OF SPOKANE VALLEY,WA 10/3/2017
2017 Budget Amendment#2
Summary of Amended Funds
2017
As 1st 2nd As
Adopted Amendment Amendment Amended
INTERNAL SERVICE FUNDS
#501 -ER&R FUND
Revenues
Vehicle rentals-#001 32,500 0 0 32,500
Vehicle rentals-#101 23,250 0 0 23,250
Vehicle rentals-#101 (plow replace.) 77,929 0 0 77,929
Vehicle rentals-#402 12,750 0 0 12,750
Transfers in-#001 (CenterPlace kitchen reserve) 36,600 0 0 36,600
Investment Interest 2,000 0 0 2,000
Total revenues 185,029 0 0 185,029
Expenditures
Vehicle Replacement 0 0 0 0
Snow Plow Replacement 0 122,400 0 122,400
Snow Plow Blades 0 28,000 0 28,000
Small tools&minor equipment 0 0 6,400 6,400
Transfers out-#001 (networking equipment) 0 0 77,000 77,000
Total expenditures 0 150,400 83,400 233,800
Revenues over(under)expenditures 185,029 (48,771)
Beginning working capital 1,136,951 1,136,951
Ending working capital 1,321,980 1,088,180
Page 8 of 8
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval:
Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing
❑ information ® admin. report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: Proposed Contracting and Purchasing Code Amendments.
GOVERNING LEGISLATION: Numerous chapters of Title 39 RCW, including RCW 39.04,
RCW 39.08, RCW 39.12, and RCW 39.80; numerous chapters of Title 3 Spokane Valley
Municipal Code (SVMC), including SVMC 3.35, SVMC 3.40, SVMC 3.41, SVMC 3.42, and
SVMC 3.46.
PREVIOUS COUNCIL ACTION TAKEN: On November 18, 2015, City Council adopted
comprehensive revisions to the City's procurement, contracting, and purchasing code set forth
in Title 3 SVMC.
BACKGROUND: In November 2015, the City Council adopted comprehensive revisions to Title
3 SVMC to revise the City's procurement provisions. These changes were made to update the
City's code with changes to State law and to provide for a more efficient and user-friendly
purchasing and contracting process for the City. The new code became effective approximately
six months after adoption to allow the City time to work through the changes to ensure sufficient
training and compliance prior to their effective date.
Staff is now proposing three primary changes to the procurement provisions. First, the City is
proposing changes to SVMC 3.40.010(C), SVMC 3.41.020(G), and SVMC 3.42.040 to comply
with amendments passed during the 2017 Legislative session. The three SVMC sections at
issue all track RCW 39.08.010 and authorize the City, upon request of a contractor, to retain 50
percent of the contract amount in lieu of requiring performance and payment bonds for any
contract up to $35,000. The performance and payment bonds protect the City in the event the
contractor either fails to perform or fails to pay required amounts to subcontractors. During the
2017 Legislative session the Washington Legislature passed Senate Bill 5734, which changed
the "retainage in lieu" amount to 10 percent of the contract amount on contracts up to $150,000.
Staff is proposing a change to the three SVMC sections to track with the recent legislative
changes and to allow for any future State amendments as well without having to modify the
SVMC.
Secondly, SVMC 3.46 generally provides that service contracts require competitive
procurement. However, contracts for certain professional services, such as attorneys and
accountants, could be negotiated to ensure that the City obtained the appropriate quality of
service as well as cost. However, staff identified that SVMC 3.46.010(C), which contains the
exception for such professional services, only applies to contracts that are less than $100,000
and that are less than one year. Since attorney services may be needed for longer terms or
greater amounts, depending upon the nature of the need, staff are proposing an amendment to
SVMC 3.46.030 to allow the exception for all such professional services independent of contract
amount or term.
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Thirdly, pursuant to SVMC 3.46.010, contracts that are either more than one year, regardless of
amount, or are more than $100,000, regardless of contract term, require a competitive
procurement process. However, staff have identified certain services that require multi-year
contracts but which are for amounts less than $15,000. In these cases, conducting a formal
competitive process is generally time consuming, costly, and likely will result in no tangible
benefit over negotiation. An example is a contract for fee collection related to the updated false
alarm regulations. Staff have identified a service provider that requires a minimum three-year
contract, but which cost less than $1,500 total. Under the current provisions, it must be
competitively procured, but the likely benefit will not be equivalent to the time or expense
required to conduct the procurement process since the contract amount is small. Staff is thus
proposing a change to SVMC 3.46.010 to allow multi-year contracts with total amounts less than
$15,000 to be negotiated rather than competitively procured.
Staff is seeking consensus to move these amendments to a first reading.
OPTIONS: Discussion; consensus to proceed with first reading at a future council meeting; take
other action deemed appropriate.
RECOMMENDED ACTION OR MOTION: Consensus to proceed with first reading at a future
council meeting.
BUDGET/FINANCIAL IMPACTS: N/A.
STAFF CONTACT: Erik Lamb, Deputy City Attorney; Cary Driskell, City Attorney,
ATTACHMENTS: Proposed amendments to SVMC 3.35, 3.40, 3.41, 3.42, and 3.46.
Page 2 of 2
Proposed Procurement Amendments
Chapter 3.35
CONTRACT AUTHORITY
Sections:
3.35.005 Definitions.
3.35.010 Contract authority.
3.35.020 Rules and policy.
3.35.030 Administration.
3.35.040 Prohibited practices.
3.35.005 Definitions.
The terms defined in this section shall apply to this chapter and Chapters 3.40, 3.41, 3.42, 3.45,
3.46, 3.47, 3.48, and 3.49 SVMC and shall have the following meanings:
"Architectural and engineering services" means professional services rendered by any person,
other than an employee of the City,contracting to perform activities within the scope of the general
definition of professional practice in Chapter 18.08, 18.43, or 18.96 RCW.
"Bid" means an offer submitted by a bidder to furnish services, labor, supplies, materials, goods,
equipment, and other property in conformity with the specifications, delivery terms, and
conditions, and other requirements included in the invitation for bids or otherwise required by the
City.
"Bid bond"means a bond or other appropriate bid proposal deposit as approved in advance by the
City,the purpose of which is to provide security to the City in the event the successful bidder fails
to enter into a contract with the City.
"Bidder" means a firm or individual who regularly maintains a place of business, transacts
business, solicits business, or maintains an inventory of merchandise for sale in, and whose
business is registered with, the City and who submits or has submitted a bid to the City.
"Bidding" means the procedure used to solicit quotations on price and delivery from prospective
suppliers of contractual services, materials, goods, and equipment which can be through either a
formal or informal competitive bid process.
"Capital equipment" means any equipment of the City having an initial value of$5,000 or more
and an estimated useful life of three or more years.
"Change orders" and "requests for additional work" mean a request for additional or alternative
services, work or procurement where there are changed conditions, a requirement that extra work
or service be performed, or such other circumstances that necessitate a modification to the contract,
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and where such additional or alternative services, work, or procurement is in the best interest of
the City.
"City Mmanager"means the city manager or designee.
"City property" means any property or equity interest in real or personal property held or owned
by the City.
"Consultant"means any person providing professional services to the City who is not an employee
of the City.
"Contractual services" means services provided by professional and general service contracts to
accomplish a particular project or service.
"Person" means any individual, organization, group, association, partnership, firm,joint venture,
corporation, or any combination thereof.
"Public work"has the meaning set forth in RCW 39.04.010, as adopted or may be amended.
"Purchase"means the acquisition of supplies, materials, goods or equipment, and other property.
"Purchase order"means a written authorization calling on a vendor or supplier to furnish supplies,
materials, goods, equipment, and other personal property to the City with a promise for payment
to be made later.
"Purchasing agent" means a person who purchases supplies, materials, goods, equipment, and
other property on behalf of the City.
"Requisition" means a standard form providing detailed information as to quantity, description,
estimated price, possible vendors, fund account, signature, and other information necessary to
make purchasing decisions.
"Responsible bidder" means a bidder who meets the requirements set forth in RCW 39.04.350 as
adopted or may be amended. Additionally, a bidder shall prove by experience or information
furnished to the satisfaction of the Ceity Mn+anager that current financial resources,production or
service facilities, service reputation and experience are adequate to make satisfactory delivery of
supplies of acceptable quality, equipment, or contractual services and who has not violated or
attempted to violate any provision of this chapter. In addition to price, the City shall take into
account the following when determining the responsible bidder:
1. The ability, capacity, and skill of the bidder to perform the contract or provide the service
required;
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2. The character, integrity, reputation,judgment, experience, and efficiency of the bidder;
3. Whether the contractor can perform the required work within the time specified by the City;
4. Quality of the contractor's performance under previous contracts with the City or other
governmental entity; and
5. The previous and existing compliance by the contractor with laws relating to contracts or
services with the City.
The five supplemental criteria described above shall be included in the documents for all bids so
prospective bidders may be aware of such supplemental criteria. The City may include additional
supplemental criteria as provided in RCW 39.04.350 for particular projects as is determined
necessary.
3.35.010 Contract authority.
A. The eCity mManager is authorized to enter into contracts, contract modifications, or change
orders without city council approval when the aggregate amount of the contract and all existing
contract amendments or change orders does not exceed$200,000, except pursuant to subsection C
of this section.
B. Any contract, contract amendment, and/or change order in excess of the eCity mManager's
authority shall require prior approval of the city council.
C. On contracts for which prior city council approval is required and received,the Ceity Mmanager
shall have authority to execute any amendments or change orders which,when aggregated, are less
than 15 percent of the original contract amount, or up to $200,000, whichever is less.
D. The city council finance committee 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 eCity mManager shall provide appropriate information to the city council at its next regular
meeting setting forth the factual basis for the action.
E. Change orders shall only be approved if they are for additional or alternative services, work or
procurements that are within the scope of purpose and intent of the original bid and contract.
3.35.020 Rules and policy.
The eCity mManager may develop rules,policies, and procedures to implement this chapter.
3.35.030 Administration.
Under the direction of the Ceity mManager, the contracting and purchasing procedures shall be
administered pursuant to this chapter through Chapter 3.49 SVMC and other applicable laws,
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including all applicable state and federal laws. The eCity rManager shall have the responsibility
to:
A. Administer and maintain the contracting process and the purchasing system according to the
rules and regulations established or authorized by applicable ordinances and statutes.
B. Coordinate the negotiation, purchase, and disposition of all City supplies, materials, and
equipment in consultation with City staff.
C. Seek to obtain a competitive price on all City contracts or purchases by bidding, submitting
requests for proposals and qualifications,using a small works roster, consultant roster, and vendor
list, or negotiating on such contracts or purchases as appropriate, unless otherwise specifically
excluded in this chapter through Chapter 3.49 SVMC.
D. Prescribe and maintain such administrative policies, procedures, and forms as are reasonably
necessary to implement this chapter through Chapter 3.49 SVMC.
E. Coordinate the inspection of all City-purchased equipment to ensure conformance with
specifications.
F. Ensure that the small works roster(s), consultant roster(s), vendors list(s), and other records
needed for the efficient operation of the purchasing system are maintained.
G. Maintain the property inventory and fixed asset systems of the City.
H. Determine the need for any routine preventive maintenance contracts on various pieces of
equipment, and to establish and maintain said maintenance contracts.
I. Periodically prepare a comprehensive list of surplus, worn out, or obsolete City-owned
equipment.Items which cannot be used or reassigned to another department shall be recommended
for disposal pursuant to SVMC 3.49.020.
3.35.040 Prohibited practices.
The following types of purchasing and bidding practices are hereby prohibited and may result in
disqualification of the bid,proposal, or procurement quote:
A. Collusion Among Bidders. Any agreement or collusion among bidders, prospective bidders,
vendors or prospective vendors to either buy or sell or fix prices in restraint of free competition.
Such bidders or vendors may be subject to exclusion from future bidding or procurement processes
with the City when determined by the eCity mManager to be in the best interests of the City.
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B. Disclosure of Formal Bid Contents. Any disclosure of information contained in the sealed bid
prior to bid opening.Notwithstanding anything herein to the contrary, all bids submitted by bidders
taking advantage of any information revealed contrary to this section shall become null and void.
C. Gratuities. In accordance with high standards of behavior,the acceptance of any gift or gratuity
in the form of cash,merchandise, or any other thing of value by an official or employee of the City
from any bidder, vendor or contractor, or prospective bidder, vendor, or contractor.
D. Employee-Owned Businesses. Obtaining City goods or services from businesses in which City
officials, employees, or their immediate family members have a majority ownership interest or
otherwise exceed the"interests" standards pursuant to Chapter 42.23 RCW.
E. Sale of Materials and Supplies. The City acquiring goods or services for any private party, or
selling its materials or supplies to City officials, employees or the public except when such
materials have been declared surplus and disposed of pursuant to Chapter 3.49 SVMC.
Chapter 3.40
COMPETITIVE BIDDING
Sections:
3.40.010 Competitive bidding—Public work in excess of$300,000.
3.40.020 Exemptions to competitive bidding requirements.
3.40.010 Competitive bidding—Public work in excess of$300,000.
For public work contracts in excess of $300,000, the following competitive bid process shall be
used. When using federal funds, the City shall also comply with all mandatory federal
requirements.
A. Publication of Notice. Sealed bids shall be invited by a single publication in a newspaper of
general circulation at least 13 days before the date and time set for receiving such bids, and shall
include an estimate of the probable cost, together with a description of the work, and shall state
that plans/specifications may be obtained from the City, and include the manner, place, date, and
time for submitting a bid to the City. The eCity eClerk shall also post notice of the request in a
public place.
B. Rejection of Bids. The Ceity Mmanager may reject, without cause, any and all bids and may
re-advertise for bids pursuant to the procedures herein described. If no bids are received on the
first call or any subsequent re-advertisement, the Ceity Mmanager may negotiate a contract with a
contractor at the lowest cost possible to the City.
C. Performance and Payment Bonds. Before entering into a contract for any public work or work
by contract on which prevailing wage is required to be paid, regardless of the amount of such
contract except as provided below, a performance bond and a payment bond shall be required in
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such amounts as are reasonably necessary to protect the best interests of the City and to ensure
complete,proper and full performance of the contract and full payment of all laborers, mechanics,
and subcontractors and material suppliers. A performance bond and a payment bond shall be
required on all public work projects pursuant to RCW 39.08.010 through 39.08.030, as adopted or
amended. Performance and payment bonds shall be released upon completion of all necessary
performance and payment conditions.
Pursuant to RCW 39.08.010,Efor certain public works and works by contract on which prevailing
wage is required to be paid,under $35,000, solely at the contractor's option, the City may, in lieu
of requiring payment and performance bonds, retain a percentage of the contract amount until the
later of 30 days after final acceptance or until receipt of all necessary releases from the Washington
State Department of Revenue, the Employment Security Department, and the Washington State
Department of Labor and Industries and settlement of any labor, material, or tax liens filed
pursuant to Chapter 60.28 RCW. This option is only available for contracts at the amount set forth
in RCW 39.08.010 as adopted or hereafter amended. The amount retained by the City shall be the
amount as set forth in RCW 39.08.010. _Retainage in lieu of payment and performance bonds
mayshall _only be used by the City for contracts whenfe the requirement of bonds substantially
increases the cost of the contract.
D. Bid Bonds. As a condition of bidding, a bid bond in the amount of five percent of the bid amount
shall be required. Such bid bond shall be required on all formally bid public work construction
projects, and shall be due at such time as the bid is submitted to the City. When the contract is let,
all bid bonds shall be returned to the bidders except that of the successful bidder, which shall be
retained until a contract is entered into and a bond to perform the work furnished as provided
above. If the successful bidder fails to enter into the contract in accordance with the bid within 10
days from the date at which the bidder is notified of bid award, the bid bond shall be forfeited.
E. Award of Bid. Except as otherwise provided herein, the City will accept the bid of the lowest
responsible bidder.
F. Award to Other Than Low Bidder. When the bid award is not given to the lowest responsible
bidder, a full and complete statement of the reasons shall be prepared by the Ceity Mmanager and
placed in the City file relating to the transaction.
3.40.020 Exemptions to competitive bidding requirements.
The following types of purchases are exempt from competitive bidding requirements. The factual
basis for any purchase deemed exempt pursuant to subsections A through C of this section shall
be filed with the contract with the eCity eClerk and shall be open to public inspection.
A. Sole Source or Equipment Repair. Purchases which by their nature are not adapted to
competitive bidding, such as purchases which are clearly and legitimately limited to a single
source, and contracts to repair equipment owned by the City which may be more efficiently
accomplished by a certain person or firm with previous experience on the equipment.
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B. Special Facilities or Market Conditions. Purchases involving special facilities or market
conditions that generally relate to acquisition of unique facilities that may be specially
manufactured or not otherwise generally available. Special market conditions may require
immediate acquisition based upon a favorable offer,including,but not limited to,liquidation sales,
public or private party offers, and similar circumstances where the acquisition can be obtained at
below-market value.
C. Emergency Public Work Projects. In the event that an emergency should arise which requires
immediate action on the part of the City to protect the health, safety, or welfare of the citizens of
the City and where it is not possible to timely adhere to the bidding practices set forth above, the
person authorized by state law or otherwise designated by the city council to act in the event of an
emergency may declare an emergency situation exists, waive competitive bidding requirements,
and award all necessary contracts to address the emergency situation. If a contract is awarded
pursuant to this subsection without bidding due to an emergency, a written finding of the existence
of an emergency shall be made by the governing body or its designee and duly entered of record
no later than two weeks following the award of the contract.
For purposes of this subsection,an emergency means unforeseen circumstances beyond the control
of the City that either: (1) present a real immediate threat to the proper performance of essential
functions; or(2) will likely result in material loss or damage to property, bodily injury, or loss of
life if immediate action is not taken.
D. Auction. The purchase of supplies, materials, or equipment not exceeding a cost of$200,000
through auctions conducted by the government of the United States or any agency thereof, any
agency of the state of Washington, any municipality or other government agency, or any private
party,may be authorized by the Ceity Mmanager if the item may be obtained at a competitive cost.
E. Exchanges. By mutual agreement, the City may exchange supplies, materials, services, or
equipment with other public agencies.
Chapter 3.41
SMALL WORKS ROSTER
Sections:
3.41.010 Small works roster.
3.41.020 Creation of separate small works rosters.
3.41.030 Maintenance of small works roster.
3.41.040 Use of small works rosters.
3.41.010 Small works roster.
The enity eClerk shall maintain one or more small works rosters comprised of contractors who
(A) have requested to be on the roster, and (B) are properly licensed or registered to perform
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contracting work in the state of Washington. A small works roster may be used in lieu of formal
sealed competitive bid procedures to award contracts for public work where the estimated cost of
the work is $300,000 or less. Small works rosters shall be maintained pursuant to the laws of the
state of Washington as now enacted or hereafter amended.
3.41.020 Creation of separate small works rosters.
The City may elect to establish small works rosters for different specialties or categories of
anticipated work with such rosters making distinctions between contractors based upon such
specialties or work.
3.41.030 Maintenance of small works roster.
Small works rosters shall be maintained as follows:
A. At least once per year, the eCity eClerk shall publish in a newspaper of general circulation a
notice of the existence of the small works roster(s) and soliciting the names of contractors for such
small works roster(s). The eCity eClerk shall place on each small works roster the names of
qualified contractors who respond to the published notice requesting to be included on each small
works roster. Thereafter, the eCity eClerk shall add to each small works roster the names of
contractors who submit a written request and appropriate records.
B. In order to be included on a small works roster, the contractor shall supply information on a
contractor qualification form developed by the City. The contractor qualification form shall
include, at a minimum,the name, address, e-mail address and phone number of the contractor, the
contractor's Washington registration number,the contractor's insurance company,the contractor's
bonding company, and the contractor's area or areas of work.
3.41.040 Use of small works rosters.
A. The City may utilize a small works roster when seeking to construct any public work or
improvement with an estimated cost including labor, material, supplies, and equipment of
$300,000 or less.
B. Procedures shall be established for securing quotations from contractors on the appropriate
small works roster to ensure that a competitive price is established and to award contracts to the
lowest responsible bidder, as provided in subsection C of this section. Invitations for bids shall
include the scope and nature of the work to be performed as well as materials and equipment to be
furnished. Detailed plans and specifications need not be included in the invitation. Quotations shall
be invited from all appropriate contractors on the appropriate small works roster.
C. When awarding a contract for work from a small works roster,the City shall award the contract
to the lowest responsible bidder. However,the City reserves the right under applicable law to reject
any or all bids and to waive procedural irregularities in the bid or bidding process.
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D. The City may receive bids in writing,which may be submitted electronically. The time and date
of receipt shall be recorded to ensure all bids are presented in a timely fashion for review and
consideration. After expiration of the time and date for submission of all bids or quotations, the
City shall review the bids submitted and either offer a contract to perform the public work or reject
all bids.
E. The City shall post on the City's website a list of the contracts awarded pursuant to this chapter
at least once every year. The list shall contain the name of the contractor or vendor awarded the
contract, the amount of the contract, a brief description of the type of work performed or items
purchased under the contract and the date it was awarded. The list shall also state the location
where the bid quotations for these contracts are available for public inspection.
F. A contract awarded from a small works roster under this chapter need not be advertised in a
legal newspaper of general circulation. Immediately after an award is made, the bid quotations
shall be recorded, open to public inspection, and available by telephone inquiry.
G. Performance and Payment Bonds. Before entering into a contract for any public work or work
by contract on which prevailing wage is required to be paid, regardless of the amount of such
contract except as provided below, a performance bond and a payment bond shall be required in
such amounts as are reasonably necessary to protect the best interests of the City and to ensure
complete,proper and full performance of the contract and full payment of all laborers, mechanics,
and subcontractors and material suppliers. A performance bond and a payment bond shall be
required on all public work projects, as provided for and in the manner set forth in RCW 39.08.010
through 39.08.030, as adopted or amended. Performance and payment bonds shall be released
upon completion of all necessary performance and payment conditions.
Pursuant to RCW 39.08.010, for certain public works and works by contract on which prevailing
wage is required to be paid under$35,000, solely at the contractor's option, the City may, in lieu
of requiring payment and performance bonds, retain a percentage of the contract amount until the
later of 30 days after final acceptance or until receipt of all necessary releases from the Washington
State Department of Revenue, the Employment Security Department, and the Washington State
Department of Labor and Industries and settlement of any labor, material, or tax liens filed
pursuant to Chapter 60.28 RCW. This option is only available for contracts at the amount set forth
in RCW 39.08.010 as adopted or hereafter amended. The amount retained by the City shall be the
amount as set forth in RCW 39.08.010. Retainage in lieu of payment and performance bonds
may only be used by the City for contracts whenfe the requirement of bonds substantially increases
the cost of the contract.
Chapter 3.42
PUBLIC WORK CONTRACTS
Sections:
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3.42.010 Public work equal to or less than $40,000 for one trade and $65,000 for two or
more trades and greater than $15,000.
3.42.020 Public work equal to or less than $15,000.
3.42.030 Exception to selection processes.
3.42.040 Performance and payment bonds.
3.42.010 Public work equal to or less than $40,000 for one trade and $65,000 for two or more
trades and greater than $15,000.
When entering into a contract for public work equal to or less than $40,000 if only one trade or
craft is involved, or $65,000 if two or more trades are involved, but greater than $15,000, the
responsible department shall obtain three or more proposals for the public work required, select
the lowest responsible proposal, and maintain a record of the process followed. Alternatively, the
department may utilize the small works roster and process pursuant to Chapter 3.41 SVMC. If less
than three proposals are received, City staff shall not be required to resubmit for additional
proposals, but shall select from the proposals submitted. If no proposals are received, City staff
shall not be required to resubmit for additional proposals, but may negotiate with any available
contractor.
3.42.020 Public work equal to or less than $15,000.
When entering into a contract for public work in an amount equal to or less than $15,000, the
responsible department is encouraged, but is not required, to use a competitive bidding process,
including obtaining three proposals pursuant to SVMC 3.42.010, or using the small works roster
and process pursuant to Chapter 3.41 SVMC. If a competitive process is not utilized, the
responsible department shall seek to achieve maximum quality at minimum cost by making an
award based on its experience and knowledge of the market.
3.42.030 Exception to selection processes.
If a situation should arise which requires immediate action on the part of the City to protect the
best interests of the City or the health, safety or welfare of the citizens of the City, and where it is
not possible to timely adhere to the procedures set forth in SVMC 3.42.010 and 3.42.020, the
selection procedures set forth in this chapter may, with prior approval of the Ceity Mmanager, be
waived by the department director, and the contract may be awarded without following the
procedures set forth in SVMC 3.42.010 and 3.42.020. The circumstances giving rise to such waiver
shall be documented in writing.
3.42.040 Performance and payment bonds.
Before entering into a contract for any public work or work by contract on which prevailing wage
is required to be paid, regardless of the amount of such contract except as provided below, a
performance bond and a payment bond shall be required in such amounts as are reasonably
necessary to protect the best interests of the City and to ensure complete, proper and full
performance of the contract and full payment of all laborers, mechanics, and subcontractors and
material suppliers. A performance bond and a payment bond shall be required on all public work
projects,pursuant to and in the manner set forth in RCW 39.08.010 through 39.08.030, as adopted
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or amended. Performance and payment bonds shall be released upon completion of all necessary
performance and payment conditions.
Pursuant to RCW 39.08.010, for certain public works and works by contract on which prevailing
wage is required to be paid,under $35,000, solely at the contractor's option, the City may, in lieu
of requiring payment and performance bonds, retain a percentage of the contract amount until the
later of 30 days after final acceptance or until receipt of all necessary releases from the Washington
State Department of Revenue, the Employment Security Department, and the Washington State
Department of Labor and Industries and settlement of any labor, material, or tax liens filed
pursuant to Chapter 60.28 RCW. This option is only available for contracts at the amount set forth
in RCW 39.08.010 as adopted or hereafter amended. The amount retained by the City shall be the
amount as set forth in RCW 39.08.010. Retainage in lieu of payment and performance bonds shall
may only be used by the City for contracts whenfe the requirement of bonds substantially increases
the cost of the contract.
Chapter 3.46
NON-ARCHITECTURAL AND ENGINEERING SERVICES
Sections:
3.46.010 Contracts for services.
3.46.020 Consultant roster for non-architectural and engineering services.
3.46.030 Exception to selection processes.
3.46.010 Contracts for services.
A. This chapter shall not apply to architectural and engineering services,the procurement of which
is governed by Echapter 3.45 SVMC.
B. When entering into a contract for services where the contract is (1) expected to exceed
$100,000,or(2) is expected to be greater than $15,000 and expected to be effective for more than
one year, a competitive selection process shall be used. This process may include a "request for
qualifications" or "request for proposals" process or formal competitive bidding procedures
pursuant to SVMC 3.40.010.
C. When entering into a contract for services where the contract is not expected to exceed
$100,000, is expected to be greater than $15,000, and is not expected to be effective for more than
one year,the responsible department shall obtain three or more proposals for the services required,
select the lowest responsible proposal, and maintain a record of the process followed. The
responsible department may use the consultant roster pursuant to SVMC 3.46.020 to obtain
proposals.When contracting for services which have historically and traditionally bccn considcrcd
professional services, such as attorneys and accountants, the responsible department may, when
determined to be in the best interest of the City, obtain such services by negotiation without
obtaining three proposals.
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D. When entering into a contract for services where the contract is not expected to exceed$15,000
and is not expected to be effective for more than one year, the responsible department is
encouraged, but is not required, to use a competitive selection process, such as obtaining three
proposals pursuant to subsection C of this section. If a competitive process is not utilized, the
responsible department shall seek to achieve maximum quality at minimum cost by making an
award based on its experience and knowledge of the market.
3.46.020 Consultant roster for non-architectural and engineering services.
Annually, or in response to specific projects or work as set forth above, the City shall encourage,
through notice published in a newspaper of general circulation, non-architectural and engineering
firms to submit a statement of qualifications which can be used to select firms that provide services
to the City. The eCity eClerk shall maintain the consultant roster for non-architectural and
engineering services, to be called the "consultant roster for non-architectural and engineering
services" or such other title as may be appropriate, and further shall maintain all statements of
qualifications submitted,all of which shall be available for public inspection. The eCity mManager
shall establish procedures for the maintenance and use of the consultant roster for non-architectural
and engineering services.
3.46.030 Exception to selection processes.
A. Notwithstanding SVMC 3.46.010 through 3.46.020, Wwhen contracting for services which
have historically and traditionally been considered professional services, such as attorneys and
accountants, the responsible department may, when determined to be in the best interest of the
Ci obtain such services b negotiation without oin throw h a com etitive rocurement
process. Such services significantly rely upon the quality of expertise provided, rather than the
cost of service.
_ obtaining three proposals.
B. If a situation should arise which requires immediate action on the part of the City to protect the
best interests of the City or the health, safety or welfare of the citizens of the City, and where it is
not possible to timely adhere to the procedures set forth in SVMC 3.46.010, the selection
procedures set forth in this chapter may,with prior approval of the eCity mManager,be waived by
the department director, and the contract may be awarded without following the procedures set
forth in SVMC 3.46.010. _The circumstances giving rise to such waiver shall be documented in
writing within 14 days.
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CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval:
Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing
❑ information ® admin. report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: Washington State Department of Transportation Grant Program Status Update
GOVERNING LEGISLATION: None
PREVIOUS COUNCIL ACTION TAKEN: September 26, 2017 Administrative report— History of
grants received.
BACKGROUND:
During the recent reorganization of the former Community Economic Development and Public Works
Departments, City Administration discovered in an audit conducted in 2014 by the Washington State
Department of Transportation,that there were a number of deficiencies in the practices and procedures in
the City's Capital Improvements Program. This placed the City's program in a status of "Corrections
Required" and contained the provision that another audit (Project Management Review (PMR) using
WSDOT terms)would be performed on the Sullivan Road Bridge project.The bridge PMR was conducted
in spring 2017 and found additional shortcomings with the Public Works Departments management of this
project.
Upon receiving this information, City Administration and the Engineering Manager of the City's newly
combined Community and Public Works Department have performed and in-depth review of the deficient
practices and have prepared the attached 2017 Corrective Action Plan.This plan will be discussed in detail
and an overview of the WSDOT grant program will be provided. The City must remain in good standing
with WSDOT to ensure our ability to receive state and federal transportation monies.
WSDOT Grant Process
The Federal Highway Administration (FHWA) delegates authority to WSDOT for approving project
development and construction administration.WSDOT can delegate some or all of this authority through a
Certification Acceptance(CA)program to qualified local agencies or governments which provides approval
authority to these agencies at the local level when developing FHWA assisted transportation projects. The
City has been certified since 2008. The CA status saves time and money as the City can design, advertise,
award and manage its own projects. The CA program does not eliminate any project development
procedures.
As a CA,the City is required to commit sufficient staff and resources to project administration to ensure all
applicable state and federal requirements are met, and that the work can be accomplished efficiently. Once
an agency has been certified,the certification agreement remains in effect indefinitely unless rescinded due
to lack of performance or modified by one of the parties.
CA Requirements
• Projects must be administered in accordance with the Local Agency Guidelines(LAG)manual.
• Projects must be administered utilizing a Professional Civil Engineer registered in the state of
Washington.
• The agency shall have sufficient expertise and capability to perform and supervise the design,right-
of-way and construction-administration phases of the project.
• The agency must have designated an official approving authority for all WSDOT-delegated project
approvals who must officially approve each project step for which it is the approving authority.
CA Compliance
To ensure that local agencies are administering FHWA funds in accordance with the LAG Manual,WSDOT
performs project management reviews(PMRs)every three years and documentation reviews annually.
The agency may lose CA status,have its delegation of authority reduced to a project or phase of a project,
be placed on probationary CA, and/or lose federal funding. This may be the result of:
• A PMR or Documentation Review
• An audit by the State Auditor
• Final project inspection.
• The qualifications and experience of the agency staff are altered
• A determination from any FHWA oversight activity
CA Status
The City entered into a CA Agreement in 2006.WSDOT conducted a PMR review of the Argonne/Sprague
Preservation project in 2014 and noted the following deficiencies:
• Missing request to sublet forms and federal aid certification for subcontractors
• Request of approval of material did not use standard form
As a result of the PMR review,the City was required to submit a corrective action plan which was approved
in 2015(see attachment). The corrective action plan only addressed the specific items found with the PMR
review.
WSDOT conducted a PMR review of the Sullivan Bridge Project in 2017 and noted that the following items
were missing or deficient:
• Trainee interviews
• Several payroll items
• Justification for or incomplete change orders
• Material acceptance documentation
• Record of Materials was not updated throughout the project and field verification of materials was
not documented
As a result of the PMR review,the City was required to submit a corrective action plan which was verbally
approved in September 2017. After evaluating the deficiencies and evaluating the capital improvement
program, staff proposed a holistic approach to correct the deficiencies. The plan proposes to develop
standard procedure and forms, provide ongoing training, develop an internal quality control plan and use
consultants to provide the inspection and documentation needs required by federal projects. Staff believes
these measures are necessary to ensure compliance with the CA agreement and to continue to be eligible
for federal funds.
The City has begun implementing the correction action plan and will continue to evaluate the capital
improvement program to ensure that any deficiencies are promptly addressed. WSDOT has informed the
City that headquarters will conduct another PMR in 2018.
OPTIONS: Discussion
RECOMMENDED ACTION OR MOTION: Discussion
BUDGET/FINANCIAL IMPACTS:
STAFF CONTACT: Gloria Mantz, Engineering Manager
John Hohman, Deputy City Manager
ATTACHMENTS: Presentation
Argonne/Sprague Street Preservation PMR letter
Sullivan Bridge Project PMR letter
2015 Corrective Action Plan
2017 Corrective Action Plan
Washington State Department of Transportation
Grant Program Status Update
John Hohman, Deputy City Manager
Gloria Mantz, Engineering Manager
City Reorganization
• During the recent reorganization of the former Community
Economic Development and Public Works Departments, City
Administration discovered in an audit conducted in 2014 by the
Washington State Department of Transportation, that there were a
number of deficiencies in the practices and procedures in the City's
Capital Improvements Program .
• City Administration and the Engineering Manager of the new
Community and Public Works Department have prepared the 2017
Corrective Action Plan to correct the deficiencies with the Capital
Improvement Program
Background on WSDOT Local Programs
• In Washington, the Federal Highway Administration ( FHWA)
delegates its authority to the Washington State Department of
Transportation (WSDOT) for approving project administration
• WSDOT Local Programs administers several federal and state
programs
• WSDOT can delegate some or all of this authority through a
Certification Acceptance (CA) program to qualified local agencies or
governments
• Authority to design, award contract, and manage construction
Certification Acceptance Program
• The Certification Acceptance Agreement requires:
■ Projects conform to Local Agency Guidelines ( LAG) manual
• Updated twice a year
• Specific processes/approval
• Requires extensive and proper documentation
• Projects must be managed by a Professional Civil Engineer
• City has sufficient expertise and capability to perform and
supervise the design, right-of-way and construction-
administration phases of the project.
• City designates an official approving authority
CA Compliance
To ensure that local agencies are administering FHWA funds in
accordance with the LAG Manual, WSDOT performs the following
procedural reviews on selected projects:
• Project management reviews ( PMR) performed by Headquarters
Local Programs every three years
• Documentation reviews performed by the region Local Programs
Engineer every year
CA Compliance
The agency may:
• Lose CA status
• Have its authority reduced to a project or phase of a project
• Be placed on probation
• Lose federal funds
• Be subject to a combination of the above
Due to:
• Findings from a PMR or documentation review
• An audit by the State Auditor
• Final project inspection
• The qualifications and experience of the agency staff are altered
• A determination from any FHWA oversight activity
CA Status Levels
Involvement in the CA program has the following status levels:
1. In Good Standing
2. Corrections Required
3. Probation
4. Exclusion from the Program
City's current status is:
• Level 2. Corrections Required
• PMRs will be performed by WSDOT Headquarters every year
until status returns to Level 1. In Good Standing
CA Status History
• Certification Acceptance Agreement in 2006
• In Good Standing status obtained in 2008
• PMR of Argonne/Sprague Avenue Preservation project in 2014
resulted in the following deficiencies:
• Missing Request to Sublet forms & federal aid certification
• Request of approval of material did not use standard form
• City's CA status changed to Level 2. Corrections Required
• City's 2015 Corrective action plan addressed specific remedies
• Sullivan Road Bridge Project was selected by WSDOT for next
PMR
CA Status History
• PMR of Sullivan Bridge Project in Spring 2017
■ PRM deficiencies this time included :
• Missing trainee interviews
• Missing several payroll items
• Missing backup information for change orders
• Missing material acceptance items
• Improperly maintained Record of Materials and unclear field
acceptance of materials
• Deficiencies dated back to the beginning of construction
• As a result of the PMR findings, the City continues with the Level 2.
Corrections Required status
• 2017 Corrective action plan — New department management performed
an in-depth evaluation of the capital improvement program
2017 Corrective Action Plan
Proposed Corrective Action Plan :
• Develop formal and consistent procedures
• Provide ongoing staff training
• Consultant for inspection services
• Consultant for construction management for projects over $10
Million
• Designate a City inspector to act as a quality control lead
• Internal audit
• Conduct required interviews
• Designate one staff member to administer material acceptance
process in coordination with project manager, inspectors, and
contractor to improve quality control
Next Steps
• Implement Correction Action Plan
• Assess staffing workload and needs
• PMR in 2018 — project yet to be selected by WSDOT
• Ongoing evaluation of capital improvement program and take necessary
steps to ensure compliance to stay eligible to receive federal funds and
restore the City to Level 1 status
• Continue to build relationships with WSDOT Local Programs staff
• Continue to pursue grants to help fund capital projects
41116.
Washington State Transportation Building
i, Department of Transportation 310 Maple Park Avenue S.E.
P.O.Box 47300
Olympia,WA 98504-7300
Lynn Peterson 360-705-7000
Secretary of Transportation TTY: 1-800-833-6388
,vww.wsdot.wa.gov
January 22, 2015
Mr. Steve Worley
Sr. Engineer-Capital Projects
City of Spokane Valley
11707 East Sprague Ave., Suite 106
Spokane Valley, Washington 99206-6124
City of Spokane Valley
Argonne Road and Sprague Street
Preservation
STPUL 9932(049)
Project Management Review
Dear Mr. Worley:
A Project Management Review(PMR) is completed on Federally Funded Local
Agency projects to ensure reasonable compliance with federal requirements in
accordance with the Local Agency Guidelines (LAG)manual. A favorable project
review ensures federal-aid participation and also provides for the agency to retain its
Certification Acceptance (CA) status. An unfavorable review may result in loss of all
or part of your federal funding, loss of CA status, or a combination of both.
A PMR was conducted on the Argonne Road and Sprague Street Preservation Project
on December 3, 2014. Three deficiencies were noted:
• The Request to Sublet forms and Federal-Aid Certification forms were not
submitted for five subcontractors. Per the Construction Manual, Section 1-
2.4G. The Request to Sublet must be approved prior to the performance of any
work of the project by either a subcontractor or a lower-tier subcontractor. In
addition,the Federal-Aid Certification form must be submitted with the
Request to Sublet.
• There was no Request for Approval of Materials (RAM) for Bid Item#119,
HMA Cl. 1/2 PG 70-28. Per the Standard Specifications 1-06.1(2). The RAM
shall be prepared by the contractor and submitted to the Engineer for approval
before the material is incorporated into the project.
Due to these PMR deficiencies a detailed Corrective Action Plan is required to be
submitted to your Region Local Programs Office addressing actions the city is taking
to ensure proper procedures are followed per the Construction Manual, Standards
Specifications and LAG Manual on future federally funded projects.
Mr. Steve Worley, Sr. Engineer-Capital Projects
City of Spokane Valley
January 22, 2015
Page 2
Due to the above deficiencies, Local Programs will also be conducting a PMR on the
Sullivan Rd. W. Bridge Replacement project,BRM-FMS1B 4103(007).
If you have any questions or concerns, please feel free to contact your Regional Local
Programs Engineer, Keith Martin at(509) 324-6080.
Sincerely,
r4: .
Kyle R. McKeon
Engineering Services Manager
Local Programs Division
KRM:slk:ac
cc: Keith Martin, Eastern Region Local Programs Engineer
Megan Hall,FHWA, MS 40943
Washington State Transportation Building
V, De artment of Trans ortation 310 Maple Park P.enue S.E.
p p P.O. Box 47300
Olympia,VIA 98504-7300
360-705-7000
August 24, 2017 TTY:1-800-833-6388
v.Nw.wsdot.wa.go✓
Ms. Gloria Mantz
Sr. Engineer-Capital Projects
City of Spokane Valley
11707 East Sprague Ave., Suite 106
Spokane Valley, Washington 99206-6124
City of Spokane Valley
Sullivan Rd W Bridge Replacement Project
BRM-FMSIB-4103(007)
Project Management Review
Dear Ms. Mantz:
Local Programs conducts Project Management Reviews (PMR) on Federal Highway
Administration funded local agency ad and award projects to ensure reasonable
compliance with federal requirements in accordance with the Local Agency
Guidelines (LAG)manual. A favorable review ensures project federal-aid
participation and agency retention of Certification Acceptance (CA) status. An
unfavorable review may result in loss of all or part of your federal funding, loss of CA
status, or a combination of both.
On May 16, 2017, Local Programs performed a PMR on the Sullivan Rd W Bridge
Replacement Project. The review identified areas with deficiencies in the
documentation. A list of these items follows,
Training Goals items missing or incomplete
• Trainee interviews were not conducted as required
Payroll items missing or incomplete
• Federal Certification for DM Drilling
• Statement of Intent for Geo Surveying
• Affidavit of wages for AAA sweeping, CAD of Spokane, Cameron,
Century Survey, Eller, Geo Survey, Inland Asphalt, Neppel, Spokane
Con Cutting, and Spokane traffic
• Certified Payroll for John Wayne
Change Order items missing or incomplete
• Change Orders 2, 3, 4, 7, 8, 10, 11, 12, and 13 lacked adequate Agency
Independent Justification documentation
Ms. Gloria Mantz
City of Spokane Valley
August 24, 2017
Page 2
Material items identified
• BI#A-124 missing CMO and concrete acceptance items
• BI#A-85 Documentation for this item was unavailable at PMR
• BI#A-86 Documentation for this item was unavailable at PMR
• BI#A-58 Missing testing results and field note records could not be
verified
Documentation items
• ROM was not maintained and field acceptance unclear
• End of project material certification
The city received a copy of the PMR findings and 30-day grace period to submit or
correct the outstanding items. The results were that you were able to supply or correct
most of the items listed in the PMR after searching the records. Due to the number of
items found during this PMR process. Your Agency is required to submit a Corrective
Action Plan to your Region Local Programs Office. The plan must outline the steps,
procedure changes and training you will put in place to prevent these deficiencies from
reoccurring on future projects. Our office will be conducting a Project Management
Review(PMR) on a Federal Aid Project in the next PMR cycle.
If you have any questions or concerns,please feel free to contact your Regional Local
Programs Engineer, Keith Martin, at(509) 324-6080.
Sincerely,
. 1
Kyle R. McKeon
Engineering Services Manager
Local Programs
KRM:ww:ac
cc: Keith Martin, Eastern Region Local Programs Engineer
cii 'yr
�]() .atie Public Works
4000 Valley Capital Improvement Program
11707 E Sprague Ave Suite 106 ♦ Spokane Valley WA 99206
509.921-1000 ♦ Fax: 509.921.1008 ♦ cityhall®spokanevalley.org
January 26,2015
Bill McCammon
Local Programs
WSDOT Eastern Region
2714 N.Mayfair St.
Spokane, WA 99201
Re: PMR Deficiencies Corrective Action Plan
Argonne and Sprague Street Preservation Project
Federal Aid Project No: STPUL 9932(049),LAA No: 7956
Dear Bill:
This letter proposes a Corrective Action Plan for deficiencies noted in your 1-22-15
Project Management Review letter.
Corrective Action Plan
1) Missing Request to Sublet forms and Federal-Aid Certification forms
At the Pre-Construction Meeting the Engineer will emphasize that no subcontractor
will be allowed to work unless the necessary federal paperwork has been processed.
The Project Engineer will review and maintain a list of Approved Project
Subcontractors. The Project Engineer will add to the list each Subcontractor for
which the Prime contractor has submitted a Request to Sublet form(DOT Form 421-012
EF)and a Federal-Aid Certification form(DOT Form 420-004 EF)that has been
approved and executed by the Engineer.
If a new Sub-Contractor is approved,the Project Engineer will send the Contractor,
the CEP Administrative Staff; and the Project Inspector an updated listed of
Approved Project Sub-Contractors.
The Project Inspector shall check to see if all workmen are working for the Prime
Contractor or an Approved Project Subcontractor on the current list. The Project
Inspector will notify the Project Engineer if any workmen are working for
subcontractors not on the list. The Engineer will notify the Contractor to dismiss
from the project any workmen working for a subcontractor lacking the necessary
forms and request the forms be submitted for approval.
1
The CIP Administrative Staff will check to ensure that any subcontractor with a
certified payroll has an approved Request to Sublet form and a Federal-Aid
Certification form on file. If a certified payroll is received from a subcontractor
lacking the necessary forms,the Engineer will be notified. The Engineer will notify
the Contractor to dismiss from the project any workmen working for a subcontractor
lacking the necessary forms and request the forms be submitted for approval.
2) Missing Request for Approval of Material form
The Engineer will refuse to review submittals unless they are submitted with a
WSDOT Request for Approval of Material form(DOT Form 350-071 EF),
appropriately filled out,when required by the Record of Materials.
Upon your approval of the Corrective Action Plan,the City will implement it on all new
and ongoing Federal Aid projects.
Si •-r: y,
fi-
�1j„
Leve orley •
Senior Capital Improvements ' ineer
2
cin c �°" Community& Public Works Department
Spokane 10210 E Sprague Avenue • Spokane Valley WA 99206
Valley Phone: (509)720-5000 • Fax:(509)720-5075 ♦ www.spokanevalley.org
September 26, 2017
Keith Martin
Local Programs Engineer
WSDOT Eastern Region
2714 North Mayfair Street
Spokane, WA 99207-2090
RE: PMR Deficiencies Corrective Action Plan
Sullivan Road West Bridge Replacement Project
Federal Aid Project No: BRM 4104(007)
Dear Keith,
This letter proposes a Corrective Action Plan to address the documentation deficiencies that were
identified during the Project Management Review (PMR)performed on the Sullivan Road West
Bridge Replacement Project by WSDOT Local Programs on May 16,2017. The deficiencies are
summarized below.
1) Training Goals items missing or incomplete
2) Payroll items missing or incomplete
3) Change Order Items missing or incomplete
4) Missing material acceptance items
5) Documentation items
• Record of Materials (ROM)was not maintained and field acceptance unclear
• End of project material certification
CORRECTIVE ACTION PLAN
The City wants to take a proactive approach to correcting the deficiencies noted and has already
implemented some of the proposed actions into our program. We believe that these deficiencies
can be corrected by assigning additional staff to federally funded projects, providing consistent
training, and developing clear procedures. The following corrective measures are proposed and
are in the process of being implemented:
A. The City will develop construction procedures in accordance with the LAG Manual and utilize new
construction documentation organizational methods. The procedures for acceptance of materials have
been drafted and were utilized for the Sullivan/Euclid PCC Project which went through a mid-project
audit by Local Programs at the request of the City. Local Programs indicated that the procedures in
place were satisfactory and the organization structure was easy to follow. The proposed procedures
will include at a minimum the following processes and checklists to ensure the required
documentation/justification is obtained and filed:
Keith Martin/WSDOT ER Local Programs
PMR Deficiencies Corrective Action Plan Page 2 of 3
• Payroll documentation: spread sheet with instructions to keep track of Request to Sublet
Work, Statement of Intent to Pay Prevailing Wages, Certification for Federal-Aid Projects,
Affidavit of Wages Paid,and Weekly Certified Payroll for Prime and each subcontractor.
• Change Orders: amend City change order form to include a checkbox to verify that an
independent justification for cost and working days has been prepared by the City and
documents if verbal authorization was given with a date and signature by authorized agent.
• Construction Inspection Documentation: ensure required material documentation is printed
and filed, develop an organization method that facilitates locating material documentation,
review inspection records daily to address issues as they arrive,and ensure visual inspection
is documented in the field records,etc.
Material Acceptance: WSDOT creates a ROM, the project manager reviews it and notes
Local Agency Guidelines exceptions and adds columns for tracking the status of material
acceptance. The ROM is then given to the contractor and inspectors. When the contractor
submits construction material submittals,the Materials Engineer in coordination with the
project manager reviews the submittal,revises the submittal tracking form and updates the
ROM. The ROM will state if all the requirements are met for the installation of the item or if
there are missing items. The submittal is then returned to the contractor with the tracking
form and updated ROM.The inspectors are copied on this correspondence and order any
necessary testing. The updated ROM is a standing agenda item for regularly scheduled
construction coordination meetings with the contractor. This is an ongoing process through
the construction phase.
B. Project managers and inspectors will receive ongoing training. Training logs will be kept for each
capital improvement program staff.The following training is proposed for the upcoming year:
• Internal training about new construction procedures.
• Local Programs sponsored training in Acceptance of Approved Materials and Construction
Inspection Documentation in the March 2018.
• Miscellaneous WSDOT Online Training in construction activities.
• Eastern Region Local Programs provided training in Construction Inspection Documentation and
Material Acceptance at the request of the City on June 14,2017.
C. The City will assign a Quality Control(QC)Lead for federally funded projects.The duties of the QC
Lead will be the following:
• Coordinate with Local Programs DBE specialist, compare monthly progress payments with DBE
reports to ensure prompt pay and conduct DBE onsite reviews for all DBE contractors
• Conduct trainee interviews
• Conduct employee wage rate interviews and verify prevailing wage requirements are being met
• Conduct internal audits using the Local Agency Project Management Review Checklist while the
project is active
• Review ROM to ensure correct material acceptance requirements are being followed and tracked.
Keith Martin/WSDOT ER Local Programs
PMR Deficiencies Corrective Action Plan Page 3 of 3
D. The City will assign a Materials Engineer for federally projects.The duties of the Material Engineer
will be the following:
• Coordinate with contractor, project manager along with City and consultant inspectors
• Review submittals,accept materials and maintain the ROM
E. Due to the required material documentation needed and limited City staff,the City will:
• Issue an RFQ annually for consultant construction inspection services to ensure we have adequate
inspectors to document construction activities.
• Use a consultant to provide construction management services for all projects with construction
costs$10 Million or higher.
The City understands that WSDOT will conduct a PMR in 2018 to ensure the Corrective Action Plan
is working and the City is in compliance with the WSDOT Certification Acceptance Agreement.
Please let me know if you find this Corrective Action Plan acceptable or if you have any
questions or comments.
Thank you in advance for your consideration.
Sincerely,
ni‘osey
Gloria Mantz, P.E.
Engineering Manager
Community& Public Works Department
10210 E Sprague Avenue
Spokane Valley, WA 99206
APPROVED BY:
Keith Martin, P.E.
Eastern Region Local Programs Engineer
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval:
Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing
❑ information ® admin. report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: State Feasibility Study of Home Growing Recreational Marijuana
GOVERNING LEGISLATION: ESSB 5131; RCW 69.50 (codifying Initiative 502); RCW 69.51A;
SVMC 19.85; SVMC 19.60.050
PREVIOUS COUNCIL ACTION TAKEN:
WSLCB Home Growing Study. During its 2017 legislative session, the Washington State
Legislature passed Engrossed Substitute Senate Bill 5131 (ESSB 5131). One of the provisions
of ESSB 5131 was direction for the Washington State Liquor and Cannabis Board (WSLCB) to
conduct a study on the feasibility of allowing home growing of recreational marijuana. ESSB
5131 requires the WSLCB to consider the federal guidelines set forth in the United States
Department of Justice "Cole Memorandum" of August 29, 2013, which allows states to
implement marijuana legalization policies, provided such regulatory and enforcement systems
address public safety, public health, and law enforcement issues related to access by minors,
illegal diversion, and illegal criminal use.
Pursuant to ESSB 5131, the WSLCB must provide its written findings and recommendations
regarding recreational home growing to the Legislature by December 1, 2017. The WSLCB is in
the process of developing its findings and recommendations and has requested comment from
interested stakeholders by October 11, 2017.
The WSLCB has come forward with three potential proposals as part of its study. The
proposals are as follows:
Proposal One: Tightly regulated state system for recreational marijuana home growing. The
State would adopt the primary controls on recreational home growing. There would be a
maximum of four plants per household and a state permit would be required. Plants would have
to be entered into the WSLCB traceability system and there would be other state requirements
for security, preventing access to youth, limiting opportunities for criminal misuse, and other
similar requirements. The WSLCB would share enforcement jurisdiction with local law
enforcement. Further, state law would also track current law prohibiting processing using gas or
other similar processing extraction means due to the safety issues attendant with such
extraction systems. It is unclear what authority, if any, the City would have to prohibit or
otherwise restrict or regulate (e.g., indoor only, permanent structures only, city permits, etc.)
home growing under this scenario.
Proposal Two: State regulations as the baseline with an emphasis on local control. The State
would adopt minimum standards (e.g., security, preventing access to youth, limiting
opportunities for criminal misuse, etc.) for recreational home growing, with options for additional
local regulation and control. There would be a maximum of four plants per household. There
would be a permit required to possess plants, but would not require plants to be entered into the
WSLCB traceability system. Local jurisdictions could adopt additional regulations and
enforcement would be conducted by local jurisdictions. This option would expressly allow local
jurisdictions to prohibit recreational home growing.
Proposal Three: Preserve status quo. Under this proposal, recreational home growing would
continue to be prohibited. A regulated market already exists allowing access to recreational
marijuana. Qualified patients and designated providers are already authorized under current
state law to grow medical marijuana at home. Home growing provides cover for illegal
diversion, youth access, and the criminal element. Thus, this option would most closely align
with the guidelines set forth in the Cole Memo.
City staff and the Spokane Valley Police Department have prepared comments for submission
to the WSLCB. This report outlines the comments prepared by City staff and the Spokane
Valley Police Department for City Council. Further, tonight staff are seeking any additional
comments requested by City Council.
Current State Law.
Currently, state law prohibits home growing marijuana for recreational purposes. State law
authorizes qualified patients and their designated providers to grow up to four plants with
authorization from a doctor, six plants with a medical marijuana recognition card (after being
entered into the State medical marijuana authorization database) and up to 15 plants if specified
by their doctor. There is a maximum of 15 plants per housing unit, regardless of the number of
qualified patients or designated providers living there. Further, state law authorizes
cooperatives, which must be registered with the WSLCB. Cooperatives may consist of up to
four patients and each cooperative may grow up to 60 plants at a domicile. The state has
provided a regulated market of marijuana producers, processors, and retailers to provide
marijuana for recreational and medical purposes. Producers, processors, and retailers are
subject to numerous state requirements, including being subject to buffers from several
sensitive uses such as schools and parks, requirements for operators to obtain a state license,
security measures, background checks, operational plans, and restrictions on distribution to
minors.
Current City Law.
The City currently has marijuana regulations in chapter 19.85 SVMC. Licensed producers and
processors are permitted in the industrial zone with limited production (indoor only) and
processing (only packaging and labeling of useable marijuana) in the regional commercial zone.
The three existing licensed retailers may operate within the mixed use, corridor mixed use, and
regional commercial zones. The City has prohibited any new licensed retailers. Further,
licensed marijuana production, processing, and retailers are subject to City buffers prohibiting
them from locating within 1,000 feet of City Hall, CenterPlace, and vacant school, library, and
City property. Licensed retailers are also prohibited from being within 1,000 feet of the
Appleway Trail and Centennial Trail. The City prohibits cooperatives, but allows qualified
patients and designated providers to grow medical marijuana pursuant to state law. Home
growing of marijuana is only allowed in the R-1, R-2, and R-3 zones, must occur in permanent
structures indoors, must be sight and smell screened from the public and neighbors, and cannot
include any combustible processing.
Currently, the City has 22 licensed producer/processors (combination license), one licensed
producer, five licensed processors, and three licensed retailers within its boundaries.
A copy of the draft comments from City staff and the Spokane Valley Police Department
covering the building, land use, code enforcement, and law enforcement issues with marijuana
home growing are attached to this RCA. These comments outline in detail staff's recommended
position regarding the feasibility of allowing recreational marijuana home growing. In summary,
City staff strongly believes that the third proposal of maintaining the status quo and continuing to
prohibit recreational marijuana home growing is the best option for the State. It best meets the
guidelines of the Cole Memo in limiting youth access, limiting illegal diversion, and limiting
related criminal activities. Further, residential structures are not designed for the issues related
to home growing and such use poses fire, electrical, and other risks. Home growing in
residential areas will also require increased City resources for law enforcement and code
enforcement that are not currently funded. Finally, if the State determines to allow home
growing, the City must retain its authority to regulate home growing, including the authority to
prohibit home growing if that the City determines that to be in the best interest of its citizens.
OPTIONS: Discussion.
RECOMMENDED ACTION OR MOTION: Discussion.
BUDGET/FINANCIAL IMPACTS: N/A at this time. In the event the State authorizes home
growing of marijuana, there may be impacts to the City in the form of permitting, code
enforcement, and law enforcement which cannot be quantified at this time.
STAFF CONTACT: Erik Lamb, Deputy City Attorney; Jenny Nickerson, Assistant Building
Official; Chief Mark Werner, Spokane Valley Police
ATTACHMENTS:
Draft City Comments
City of Spokane Valley Police Comments
Siôiiiii Mark Calhoun,City Manager
10210 E Sprague Avenue • Spokane Valley WA 99206
,fir 'Valley Phone: (509)720-5000 ♦Fax: (509)720-5075 ♦www.spokanevalley.org
Email: mcalhoun@spokanevalley.org
October 4, 2017
Washington State Liquor and Cannabis Board
PO Box 43080
Olympia, WA 98504
Re: City of Spokane Valley Comments to Recreational Marijuana Home Grow Feasibility Study
Pursuant to Section 24 of Chapter 317, Laws of 2017 (Engrossed Substitute Senate Bill 5131)
To Whom It May Concern:
The City of Spokane Valley (City) is pleased to have this opportunity to provide comments to the
Washington State Liquor and Cannabis Board(WSLCB)on its ongoing study of regulatory options
for home growing of recreational marijuana. Since the passage of Initiative 502 in 2012, the City
has been actively engaged in local regulation of all aspects of legalized marijuana land uses within
its jurisdiction. Indeed,the City spent several months developing and deliberating on what became
the City's current local marijuana land use regulations. The City has over 20 licensed producers
and processors in its jurisdiction, as well as three licensed marijuana retailers. Through the careful
consideration of the impacts at the local level,the City crafted land use regulations that respond to
its unique local circumstances, including impacts on a new linear park, the Appleway Trail. As
part of its land use regulations,the City spent considerable time reviewing and considering impacts
from home growing of medical marijuana. Impacts from commercial facilities may be minimized
due to zoning, but impacts from home growing are likely to be magnified due to the immediate
proximity to other residential properties. The City developed strong regulations to protect
neighboring properties from negative impacts such as odor and youth access. Accordingly, the
City believes it is particularly well-situated to comment on the proposals put forth by the WSLCB.
The City provides the following comments to the WSLCB:
1. The State must maintain the status quo and prohibit home growing of recreational
marijuana.
Allowing recreational marijuana home growing will unnecessarily loosen the regulatory controls
and allow greater access by youth, illegal diversion, and increased criminal activity in a manner
contradictory to the guidelines set forth in the "Cole Memo" issued by the U.S. Department of
Justice. As indicated by the WSLCB in its proposal three, there already exists a regulated market
with 512 retail stores for people to purchase and acquire recreational marijuana. All plants are
traced from seed to sale and there is a strong system to prohibit access to minors and illegal
diversion. Further, commercial entities are better monetarily positioned to have the necessary
security to deter crime, although we see it is still occurring as evidenced by the recent kidnapping
events in Cheney.
1
Open door to youth access, illegal diversion, and criminal activity
If home growing is allowed, the current regulatory system will be substantially weakened.
Regardless of whether it is"tightly regulated"by the WSLCB or put in the hands of local control,
there are not sufficient resources at either the State or local level to adequately monitor and control
youth access, illegal diversion, and the inevitable criminal activities that will occur with home
growing. The State already provides insufficient funds for local agencies to accommodate the
impacts that have occurred from the legalization of marijuana, and allowing home growing will
effectively be yet another unfunded mandate from the State. It will be difficult if not impossible
for parents to block access to the growing plants from their kids. Further, it will promote sharing
of home-grown marijuana between neighbors,leading to increased diversion. Finally,as explained
by the accompanying letter from the City of Spokane Valley Police Department, it will result in
increased criminal activities—both from those illegally growing more than allowed and illegally
distributing, as well as those that become subject to burglaries.
Negative impacts on residences not designed for home growing
Further, home growers often are unaware of the extent to which home growing may negatively
impact residential structures that were not designed for such uses. There are significant building
code issues which have not been addressed when considering home growing. The electrical load
associated with the HVAC and lighting necessary for plant growth generally requires
modifications to the building's system and if those modifications are performed by an individual
not well-qualified, there is a significant electrocution and/or fire risk to not only the subject
structure, but neighboring structures. The International Residential Code (IRC) provisions were
not intended to accommodate such a fire risk; where the International Building Code (IBC) for
non-residential structures would require a minimum of 20 feet between structures that aren't
specifically fire-resistance-rated, the IRC allows residential structures to be as close as three feet
without fire-resistive construction. Even when a fire-resistive wall is required, the extent of the
protection is far less than what would be required for a non-residential structure under the IBC.
Another issue is that residential structures are not designed to accommodate the heat and moisture
loads generated as part of an indoor marijuana production facility. The typical whole-house
ventilation system required under the current residential-related codes is meant to address heat and
moisture associated with normal residential cooking and cleaning activities. In order to properly
accommodate an indoor growing facility(or an area of a house used for such a purpose),the HVAC
system would require modification. Because many new homes have been designed to meet the
minimum Washington State Energy Code standards, modifications could render the system non-
compliant.
Both concerns described above would require significant local staff time for the review of building
permits for the modifications. Further, interior modifications to residential structures are difficult
for code enforcement to identify until the problem (fire, mold, over-loaded HVAC system) causes
visible damage to a structure. It took a number of years for the regional regulatory agencies to
form a feasible review, inspection and enforcement process for even commercial marijuana
production,processing, and retail uses in buildings already designed for such impacts.
2
Negative impacts on neighborhoods
Marijuana is a divisive issue for many people, and allowing pervasive home growing for
recreational purposes will only create more intense feelings for many citizens. Unlike alcohol,
which may be produced and consumed in a home setting with little to no impact on neighboring
properties, marijuana has a distinct and pronounced smell that carries well beyond the boundaries
of the home where it may be grown or used. The smell is difficult to control, even in well-funded
commercial settings,so allowing home growing introduces more neighborhood disputes over those
growing it at home versus those who oppose the smell. It will fall to local code enforcement to
settle such disputes. Again, the State has not provided and is not proposing additional local
funding, so the local agency will have to find other existing revenue sources to respond to those
odor complaints that may not be easily resolved and which they do not currently have to deal with.
Further, people have strong constitutional protections for the activities in their homes, it becomes
especially difficult for code enforcement to effectively address issues which stem from indoor
activities such as home growing.
2. If the State allows home growing of recreational marijuana, local authorities must retain
their rights to adopt local regulations, including the authority to adopt a complete
prohibition on recreational home growing.
The impacts from legalized marijuana are distinctly local. The City's citizens will be the people
directly impacted by a change allowing home growing. Thus, if the State determines it will allow
home growing recreational marijuana, the City must retain its authority to adopt appropriate
reasonable regulations to respond to the impacts that are certain to occur at the local level. These
include necessary determinations of appropriate allocation of law enforcement and code
enforcement resources, permitting requirements to meet concerns such as those expressed above
such as lacking building code requirements, and other requirements to minimize access by youth,
to limit diversion, and to minimize potential related criminal activity. Any local authority to adopt
regulations necessarily must include the right and authority to determine that the local community
is best served by prohibiting home growing of recreational marijuana within its boundaries.
Conclusion
To conclude, the City of Spokane Valley appreciates this opportunity to comment on the proposal
and study by the WSLCB regarding the feasibility of recreational marijuana home growing. In
order to meet the guidelines of the Cole Memo and maintain a strong regulatory system, the City
strongly recommends maintaining the status quo and prohibiting recreational marijuana home
growing.
Sincerely,
Mark Calhoun, City Manager
3
Mark Weiner Ozzie KI1eZOVIc11
Chief of Police Sheriff
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Spokane ValleyPolice Department A` ;r,�R' � ,
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Accredited Since 2011 A. '._f.f r' '
Services provided in partnership with S- .'-'7r:-
the Spokane County Sheriff's Office and the Community,
''';,,. Dedicated to Your Safety.
September 27, 2017
Spokane Valley City Council
10210 E Sprague Avenue
Spokane Valley WA 99206
Dear Councilmembers,
I am writing to express my concerns should Washington State adopt a policy permitting recreational marijuana
home grows. As the Chief of Police for Spokane Valley, Washington, I am deeply concerned about controlling
youth access, preventing diversion, and the increased burden this will place on local law enforcement to enforce
compliance.
If option 1 or 2 is adopted, citizens will be permitted to grow up to four marijuana plants for recreation use.
Since the plants will be under the control of the property owner, it will be their responsibility to control youth
access. Absent 24-hour monitoring, no one outside the grower will be able to insure youth are not getting
access to the marijuana. This is not adequate and will not prevent youth from obtaining access, as it hasn't been
successful in preventing youth from getting into their parents' or relatives' alcohol cabinets over the years.
This option will only increase the availability and ease in which youth can obtain marijuana.
Being close to Idaho, I have great concerns marijuana grown legally in Washington will be transported the short
12 miles east to the Idaho border where marijuana products will be sold illegally for profit, increasing the
burden on law enforcement to investigate diversion cases and compliance. We have seen numerous instances
where lawful home medical marijuana growers have been victims of burglaries and robberies as criminals seek
to steal and profit from marijuana. My concern is these types of crimes will escalate with the increased ability
to lawfully grow marijuana if recreational grows are permitted, putting citizens at risk and increasing the
workload of local law enforcement.
12710 E. Sprague Avenue, Spokane Valley WA 99216 (509) 477-3300/(509) 477-3333 (fax)
Si)okaneValleYPolice@Snokai teCounly.org
I strongly encourage the State to elect option 3, prohibiting recreational home grows. I do not believe WSLCB
has the staffing needed to prevent youth access or diversion and I know local law enforcement does not have the
capacity to handle the additional burden to properly regulate compliance. Recreational marijuana can currently
be purchased legally through retail stores; therefore, I see no significant benefit, but instead a significantly
greater risk to our youth, increased crime and ultimately our communities should recreational home grows be
permitted.
Chief Mar ,
erner
Spokane Valley Police Department
MW/km
12710 L. Sprague Avenue, Spokane Valley WA 99216 (509) 477-3300/ (509) 477-3333 (fax)
S p okal neVallcyPoliSix)1u-ultCountv.org
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval:
Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing
❑ information ® admin. report ❑ pending legislation
AGENDA ITEM TITLE: Draft 2018 Legislative Agenda
GOVERNING LEGISLATION: n/a
PREVIOUS COUNCIL ACTION TAKEN: Council discussed a first draft of the 2018 Legislative
Agenda at the August 29, 2017 Council meeting. The updated draft that is attached incorporates
changes recommended by the City's lobbyist — Gordon Thomas Honeywell, following their
discussions on this topic with our Legislative Delegation. The substance of these changes were
included in the August 29, 2017 Council discussion.
BACKGROUND: This is an opportunity for Council to discuss potential items for the 2018
Legislative Agenda. Our proposed legislative calendar is as follows:
• August 29, 2017 - Administrative Report and Council discussion (first touch).
• October 3, 2017 - Administrative Report and Council discussion (second touch).
• October 24, 2017 - Council motion to formally approve the 2018 Legislative Agenda
• November 2017 - Council meets w/ legislative delegation to discuss 2018 Legislative
Agenda.
• January 2018 - Session Begins
OPTIONS: For discussion only
RECOMMENDED ACTION OR MOTION: For discussion only
BUDGET/FINANCIAL IMPACTS:
STAFF CONTACT: Mark Calhoun
ATTACHMENTS:
• Draft 2018 Legislative Agenda.
CITY OF SPOKANE VALLEY 2018 LEGISLATIVE AGENDA
Transportation Fundin2 Request: Bridging the Valley
The City of Spokane Valley continues to progress on the multi-phase Bridging the Valley project that
replaces dangerous at-grade crossings throughout the City. As the City nears design on the Barker Road
Grade Separation Project, it hopes to pursue state and federal funding to advance the project, as outlined
below. However it is important to recognize that the Barker Road project is only the first phase, and in
future years,the City will also pursue funds for the Pines Road Underpass/BNSF Grade Separation Project,
and other elements of Bridging the Valley.
Phase 1: Barker Road/BNSF Grade Separation Project
The City of Spokane Valley respectfully requests that the state invest in Phase 1 of Bridging the
Valley by allocating funds to the Barker Road/BNSF Grade Separation project. The Barker
Road/BNSF Grade Separation Project replaces an at-grade crossing with an overpass of BNSF's
railroad tracks and Trent Avenue (SR 290). The project will eliminate two at-grade crossings,
eliminating train/vehicle crash risks. The project will improve train travel through the Spokane
region, which is a bottleneck of the Great Northern Corridor. The total project cost is currently
anticipated to be $20 million. The City has already secured partial financing for the project
including a$720,000 federal earmark,a Washington State Freight Mobility Investment Board grant
equivalent to 20% of the total project cost, $3.6 million of City-generated funds specifically
earmarked for this purpose,and$1.5 million that the City received in the 2017-2019 Transportation
Budget from the Washington State Legislature, which the City plans to spend on bridge design.
Once designed, the City hopes to continue its partnership with the state to fund right-of-way
acquisition and construction.
Pass legislation responding to Hirst and a 2017-2019 Capital Budget: Fundin2 for Appleway Trail
Park Amenities
The City supports efforts to reach agreement on legislation addressing the recent Hirst Supreme Court
decision regarding water availability in rural areas. The City of Spokane Valley also encourages the
Legislature to pass a 2017-2019 Capital Budget with an allocation of$540,000 for park amenities for the
first mile of the Appleway Trail. The most recent versions of the proposed 2017-2019 Capital Budget
include this funding. These additional amenities include a restroom, topsoil, limited turf and dryland
seeding, trees, drinking fountain, and benches. The City previously funded, designed and constructed the
paved portion of the first mile with over$1 million without these amenities.The state has allocated funding
for the remaining 3.25 miles (including amenities), scheduled over the next two years. This funding of
$540,000 in the Capital Budget will bring amenities to the entire 4.25 mile trail,realizing the full conceptual
plan and orienting future economic development.
Protect the Local State-Shared Revenues
The City of Spokane Valley requests that the Legislature preserve and restore local state-shared revenues.
These funds include the Liquor Excise Tax Account ($442,294 in 2016), Liquor Board Profits ($804,057
in 2016),Municipal Criminal Justice Assistance Account($280,337 in 2016),and City-County Assistance
Account and Marijuana Revenues ($54,213 in 2016). Specifically, the City supports legislation that
removes the 2011 cap on Liquor Profit revenues to restore the 50/50 revenue sharing relationship between
the state and local governments.
Spokane Valley is home to many warehouses and manufacturing facilities. As a result, the City receives
over $500,000 each year in streamlined sales tax (SST) mitigation payments to compensate the City for
Page 1 of 2
financial losses when the state switched to a destination-based sales tax system. The 2017 Legislature
indicated with the passage of the Marketplace Fairness Act, that the state intends to suspend streamlined
sales tax mitigation payments in the 2019-2021 biennium. Meanwhile, the Department of Revenue was
directed to analyze if and when expected revenue gains from implementation of the Marketplace Fairness
Act equal or exceed revenue losses to cities. The City will be closely monitoring the outcome of this and
requests that cities receiving SST mitigation are made whole through this transition throughout the state.
Protect Businesses by Reforming State Regulatory Burden
The City of Spokane Valley strongly supports businesses small and large,in our City and across the state,
because they are the lifeblood of our economy. Unfortunately,these businesses are forced to compete in a
state regulatory environment that is increasingly burdensome, making it difficult to compete with
businesses in neighboring states. Of most urgent concern is the regressive state business&occupation tax,
with the current Labor&Industries program close behind, and both needing significant reform before they
do irreparable damage to commerce in Washington. Spokane Valley supports rebalancing the state-wide
regulatory framework to encourage and support business development and retention.
Abandoned/Foreclosed Homes
The City of Spokane Valley supports legislation to provide cities with the tools to address abandoned and
foreclosed homes. In 2016, the Washington State Supreme Court ruled in Jordan v. Nationstar, that
financial institutions cannot enter and secure homes until the foreclosure process is complete.This leads to
many homes that are mid-foreclosure being abandoned. Abandoned homes throughout a community
become sites for criminal activity, squatters, and declining property values. The City encourages the
Legislature to adopt legislation in response to the Jordan v Nationstar case that provides cities with tools
to address abandoned and foreclosed homes.
Indigent Defense Funding
The City of Spokane Valley supports full funding for municipal indigent defense services. In 2013, the
Washington Supreme Court set new caseload standards for the number of cases a public defender can
represent in a calendar year. This has increased the annual cost of providing indigent defense services by
$71,521 or 11.4%.The City supports policy and fiscal changes to mitigate this new obligation.
The City supports AWC legislative agenda items that serve the best interests of Spokane Valley.
Page 2 of 2
CITY OF SPOKANE VALLEY 2018 LEGISLATIVE AGENDA
1 ' I:
The City of Spokane Valley residents and businesses receive water through multiple regional water
providers. To ensure adequate water supply for the growing Valley community, current law needs to be
subject to relinquishment. The water providers are using water rights currently designated for agricultural
irrigation and dairy purposes,rather than for municipal water supply.Ecology has indicated that agricultural
municipal water supply water rights without filing for a change of use permit. A change of use permit
process is slow,costly,and may diminish the overall water right. The City supports legislation that clarifies,
that the water rights held by water providers serving the Spokane Valley region can be changed to municipal
water supply purposes without going through the change of use permitting process. This issue was partially
addressed in 2017 through an agreement with Department of Ecology, but the balance of providers need
the same clarity of process.
Transportation Funding Request: Bridging the Valley
The City of Spokane Valley continues to progressmake headway on the multi-phase Bridging the Valley
project that replaces dangerous at-grade crossings throughout the City. As the City nears design on the
Barker Road Grade Separation Project, it hopes to pursue state and federal funding to advance the project,
as outlined below.However it is important to recognize that the Barker Road project is only the first phase,
and in future years,the City will also pursue funds for the Pines Road Underpass-/-BNSF Grade Separation
Project, and other elements of Bridging the Valley.=
Phase 1: Barker Road/BNSF Grade Separation Project
The City of Spokane Valley respectfully requests that the state invest in Phase 1 of Bridging the
Valley by allocating funds to the Barker Road/BNSF Grade Separation project. The Barker
Road/BNSF Grade Separation Project replaces an at-grade crossing with an overpass of BNSF's
railroad tracks and Trent Avenue (SR 290). The project will eliminate two at-grade crossings,
eliminating train/vehicle crash risks. The project will improve train travel through the Spokane
region, which is a bottleneck of the Great Northern Corridor. The total project cost is currently
anticipated to be $20 million. The City has already secured partial financing for the project
including a$720,000 federal earmark,a Washington State Freight Mobility Investment Board grant
equivalent to 20% of the total project cost, $3.6 million of City-generated funds specifically
earmarked for this purpose,and$1.5 million that the City received in the 2017-2019 Transportation
Budget from the Washington State Legislature, which the City plans to spend on bridge design.
Once designed, the City hopes to continue its partnership with the state to fund right-of-way
acquisition and construction.
.
Following the successful completion of Phase 1, the City of Spokane Valley plans to request that
the state invest in Phase 2 of Bridging the Valley by allocating funds to the Pines Road
Underpass/BNSF Grade Separation project. The Pines Road Underpass/BNSF Grade Separation
Project will replace an at grade crossing with an underpass of BNSF's railroad tracks and Trent
Avenue (SR 290). The project will eliminate a major at grade crossing, eliminating train/vehicle
crash risks. The project will improve train travel through the Spokane region,which is a bottleneck
the underpass, using City funds. The City will seek future funding for the Pines Road
Underpass/BNSF Grade Separation.
Page 1 of 3
Pass legislation responding to a-Hirst and a 2017-2019 Capital Budget: Funding for Appleway Trail
Park Amenities
The City supports efforts to reach agreement on legislation addressing the recent Hirst Supreme Court
decision regarding water availability in rural areas. The City of Spokane Valley also encourages the
Legislature to pass a 2017-2019 Capital Budget with an allocation of$540,000 for park amenities for the
first mile of the Appleway Trail. The most recent versions of the proposed 2017-2019 Capital Budget
include this funding. These additional amenities include a restroom, topsoil, limited turf and dryland
seeding, trees, drinking fountain, and benches. The City previously funded, designed and constructed the
paved portion of the first mile with over$1 million without these amenities.The state has allocated funding
for the remaining 3.25 miles (including amenities), scheduled over the next two years. This funding of
$540,000 in the Capital Budget will bring amenities to the entire 4.25 mile trail,realizing the full conceptual
plan and orienting future economic development.
Protect the Local State-Shared Revenues
The City of Spokane Valley requests that the Legislature preserve and restore local state-shared revenues.
These funds include the Liquor Excise Tax Account ($442,294 in 2016), Liquor Board Profits ($804,057
in 2016),Municipal Criminal Justice Assistance Account($280,337 in 2016),and City-County Assistance
Account and Marijuana Revenues ($54,213 in 2016). Specifically, the City supports legislation that
removes the 2011 cap on Liquor Profit revenues;to restore the 50/50 revenue sharing relationship between
the state and local governments.
Spokane Valley is home to many warehouses and manufacturing facilities. As a result, the City receives
over $500,000 each year in streamlined sales tax (SST) mitigation payments to compensate the City for
financial losses when the state switched to a destination-based sales tax system. The 2017 Legislature
indicated with the passage of the Marketplace Fairness Act, that the state intends to suspend streamlined
sales tax mitigation payments in the 2019-2021 biennium. Meanwhile, the Department of Revenue was
directed to analyze if and when expected revenue gains from implementation of the Marketplace Fairness
Act equal or exceed revenue losses to cities. The City will be closely monitoring the outcome of this and
requests that cities receiving SST mitigation are made whole through this transition throughout the state.
Protect Businesses by Reforming State Regulatory Burden
The City of Spokane Valley strongly supports businesses small and large, in our City and across the state,
because they are the lifeblood of our economy. Unfortunately,these businesses are forced to compete in a
state regulatory environment that is increasingly burdensome, making it difficult to compete with
businesses in neighboring states. Of most urgent concern is the regressive state business&occupation tax,
with the current Labor&Industries program close behind, and both needing significant reform before they
do irreparable damage to commerce in Washington. Spokane Valley supports rebalancing the state-wide
regulatory framework to encourage and support business development and retention.
Abandoned/Foreclosed Homes
The City of Spokane Valley supports legislation to provide cities with the tools to address abandoned and
foreclosed homes. In 2016, the Washington State Supreme Court ruled in Jordan v. Nationstar, that
financial institutions cannot enter and secure homes until the foreclosure process is complete.This leads to
many homes that are mid-foreclosure being abandoned. Abandoned homes throughout a community
become sites for criminal activity, squatters, and declining property values. The City encourages the
Legislature to adopt legislation in response to the Jordan v Nationstar case that provides cities with tools
to address abandoned and foreclosed homes.
Indigent Defense Funding
The City of Spokane Valley supports full funding for municipal indigent defense services. In 2013, the
Washington Supreme Court set new caseload standards for the number of cases a public defender can
Page 2 of 3
-
represent in a calendar year. This has increased the annual cost of providing indigent defense services by
$71,521 or 11.4%.The City supports policy and fiscal changes to mitigate this new obligation.
The City supports AWC legislative agenda items that serve the best interests of Spokane Valley.
Page 3 of 3
DRAFT
ADVANCE AGENDA
as of September 28,2017; 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
October 10,2017,Formal Meeting Format,6:00 p.m. Idue Tue,Oct 31
1. PUBLIC HEARING: Proposed 2018 Budget—Chelsie Taylor (20 minutes)
2. Consent Agenda(claims,payroll,minutes) (5 minutes)
3. First Reading Proposed Property Tax Ordinance 17-011—Chelsie Taylor (15 minutes)
4. First Reading Ordinance 17-012 Amending Procurement Code—Erik Lamb (15 minutes)
5.Motion Consideration: CenterPlace Great Room Bid—Mike Stone (10 minutes)
6.Motion Consideration: TIGER Grant—Adam Jackson (10 minutes)
7.Motion Consideration: INFRA Grant —Adam Jackson (10 minutes)
[*estimated meeting: 85 minutes]
October 12, 2017:AWC Regional Meeting, Spokane
October 17, 2017, Study Session Format,6:00 p.m. Idue Tue,Oct 101
1. Felts Field Update —Airport Director Larry Krauter (15 minutes)
2. CDBG Grant—Chaz Bates (15 minutes)
3. Painted Hills—Cary Driskell,John Hohman (20 minutes)
4. Pines Grade Separation—John Hohman (15 minutes)
5. Barker Grade Separation—John Hohman (15 minutes)
6. Emergency Management RFQ—Cary Driskell, Chief Werner (20 minutes)
7. Official Newspaper of Spokane Valley—Chris Bainbridge, Cary Driskell (15 minutes)
8. Advance Agenda—Mayor Higgins (5 minutes)
[*estimated meeting: 120 minutes]
October 24,2017,Formal Meeting Format,6:00 p.m. [due Tue,Oct 1711
1. PUBLIC HEARING: Proposed 2017 Budget Amendment—Chelsie Taylor (15 minutes)
2. First Reading Ordinance 17-013 Amending 2017 Budget—Chelsie Taylor (5 minutes)
3. PUBLIC HEARING: CDBG Grants—Chaz Bates (15 minutes)
4.Motion Consideration: CDBG Grant Projects—Chaz Bates (5 minutes)
5. Consent Agenda(claims,payroll,minutes) (5 minutes)
6. Second Reading Proposed Property Tax Ordinance 17-011—Chelsie Taylor (10 minutes)
7. Second Reading Ordinance 17-012 Amending Procurement Code—Erik Lamb (10 minutes)
8. First Reading Ordinance 17-014 Adopting 2018 Budget—Chelsie Taylor (15 minutes)
9.Motion Consideration: Allocation of Funds to Outside Agencies—Chelsie Taylor (20 minutes)
10. Admin Report: Police Dept Monthly Report—Mark Werner (10 minutes)
11. Admin Report: Advance Agenda—Mayor Higgins (5 minutes)
12. Info Only: Department Reports [*estimated meeting: 115 minutes]
October 31,2017, Study Session Format, 6:00 p.m. [due Tue,Oct 24]
ACTION ITEMS:
1. Motion Consideration: Legislative Agenda—Mark Calhoun (10 minutes)
NON-ACTION ITEMS
1. 8th&McDonald—John Hohman (20 minutes)
2. Advance Agenda (5 minutes)
[*estimated meeting: 35 minutes]
Draft Advance Agenda 9/28/2017 1:40:07 PM Page 1 of 3
November 7,2017, Study Session, 6:00 p.m. Meeting cancelled due to election night
November 14,2017,Formal Meeting Format, 6:00 p.m. Idue Tue,Nov 71
1. PUBLIC HEARING: Final Hearing on 2018 Budget—Chelsie Taylor (20 minutes)
2. Consent Agenda(claims,payroll,minutes) (5 minutes)
3. Second Reading Ordinance 17-013 Amending 2017 Budget—Chelsie Taylor (15 minutes)
4. Second Reading Ordinance 17-014 Adopting 2018 Budget—Chelsie Taylor (20 minutes)
5. Admin Report: LTAC Recommendations to Council—Chelsie Taylor (20 minutes)
6. Advance Agenda—Mayor Higgins (5 minutes)
[*estimated meeting: 85 minutes]
November 21, 2017, Study Session Format,6:00 p.m. [due Tue,Nov 141
1. Admin Report: 2018 Fee Resolution—Chelsie Taylor (20 minutes)
2. Advance Agenda—Mayor Higgins (5 minutes)
[*estimated meeting: minutes]
November 28,2017,Formal Meeting Format,6:00 p.m. Meeting cancelled due to Thanksgiving Holiday
December 5,2017, Study Session,6:00 p.m. [due Tue,Nov 211
1. Advance Agenda—Mayor Higgins (5 minutes)
December 12,2017,Formal Meeting Format, 6:00 p.m. fdue Tue, Dec 51
1. Consent Agenda(claims,payroll,minutes) (5 minutes)
2.Fee Resolution,2018—Chelsie Taylor (10 minutes)
3. Motion Consideration: Award of LTAC Funds—Chelsie Taylor (25 minutes)
4. Advance Agenda—Mayor Higgins (5 minutes)
[*estimated meeting: 45 minutes]
December 19, 2017, Study Session Format, 6:00 p.m. [due Tue,Dec 121
1. Advance Agenda—Mayor Higgins (5 minutes)
December 26,2017,Formal Meeting Format, 6:00 p.m. Meeting cancelled due to Christmas Holiday
January 2,2018, Study Session,6:00 p.m. [due Tue,Dec 261
Administration of Oath of Office to Newly Elected Officials
1. Selection of Mayor and Deputy Mayor—Chris Bainbridge (15 minutes)
2. Advance Agenda—Mayor (5 minutes)
[*estimated meeting: minutes]
January 9,2018,Formal Meeting Format, 6:00 p.m. [due Tue, Jan 21
1. Consent Agenda(claims,payroll,minutes) (5 minutes)
2. Appointments: Councilmembers to Committees—Mayor (10 minutes)
3. Appointments: Planning Commission—Mayor (10 minutes)
4. Appointments: Lodging Tax Advisory Committee—Mayor (10 minutes)
5. Advance Agenda—Mayor Higgins (5 minutes)
[*estimated meeting: 40 minutes]
*time for public or Council comments not included
Draft Advance Agenda 9/28/2017 1:40:07 PM Page 2 of 3
OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS:
AWC City Action Days: Jan 24-25,2018 Olympia
Density Standards(19.70.050(g))
Disc Golf Park
Donation Recognition
Farmers Market
Marijuana Industry,Financial Impact
Nuisances(yard sales,properties, drug houses,etc.)
Outside Agency Funding Level(winter workshop)
Parental Rights [+staff research time]
Police Precinct(officers,cars,carpet,etc.)
Protestor Conditions
Resolution/Proclamation Supporting SV Schools
Retail Recruitment Follow-up
School Interns
Second Amendment Sanctuary City
Shipping Containers
Sign Ordinance
Small Cell Regulations
Solid Waste Contract Approval
Transportation&Infrastructure
Undergrounding
Urban Farming&Animal Keeping
Utility Facilities in ROW
Water Banking
Draft Advance Agenda 9/28/2017 1:40:07 PM Page 3 of 3
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: October 3, 2017 Department Director Approval: ❑
Item: Check all that apply: ❑ Consent ❑ Old business ❑ New business ❑ Public Hearing
® Information ❑Admin. Report❑ Pending Legislation
AGENDA ITEM TITLE: Community Development Block Grant Program — Potential CDBG Projects
GOVERNING LEGISLATION: Federal Department of Housing and Urban Development (HUD)
PREVIOUS COUNCIL ACTION TAKEN: None
BACKGROUND:The City of Spokane Valley is a member of the Spokane County Community Development
Block Grant (CDBG) Consortium. Each year the Federal Department of Housing and Urban Development
provides CDBG entitlement funding to Spokane County. The City receives a 20 percent set-aside of
Spokane County's annual federal appropriation for infrastructure projects. Spokane Valley's share is
generally around $270,000 for eligible projects, though the city has received more than the 20 percent set-
aside in past years.
Although the City has a guaranteed set aside, we must participate in the same application process as all
other agencies requesting CDBG funding. To be eligible for CDBG funding, projects must be located in
residential, low to moderate income target areas. Proposed projects must also be ranked as a"high priority"
in Spokane County's Consolidated Plan, the guiding document for Spokane County's CDBG program. High
priority infrastructure projects include water, sewer and street improvements.
The CDBG application deadline is November 10, 2017. For the 2018 project year, the City has identified
two potential projects that qualify for CDBG funding. The City sent a postcard inviting comment from
properties adjacent to the potential projects. A public hearing on the proposed projects is scheduled for
October 24, 2017. The methodology for selecting projects in the City is to identify sidewalk gaps that make
needed pedestrian connections in the CDGB target areas. Proposed projects are consistent with the
adopted Comprehensive Plan.
The following projects were identified based on an evaluation of sidewalk needs in CDBG target areas. All
projects are scalable and can be reduced in scope to accommodate reduced funding allocations. Additional
engineering and design are needed for each project.
# Proposed CDBG Sidewalk Project Approximate Costs
1 Wilbur Rd —Broadway to Boone (west side) $397,581
2 Knox Rd —Sargent to Hutchinson (south side) $342,304
OPTIONS: Information Only.
RECOMMENDED ACTION OR MOTION: Information Only.
BUDGET/FINANCIAL IMPACTS: CDBG grants are typically funded at 100 percent of the total project cost.
STAFF CONTACT: Chaz Bates, Economic Development Specialist
Gloria Mantz, Engineer Manager
ATTACHMENTS: 2018 CDBG Sidewalk Project Maps
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E Mansfield Ave Project Side: South
,q Safe Route to School: No
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