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2019, 02-26 Regular Formal Format MINUTES City of Spokane Valley City Council Regular Meeting Formal Meeting Format Tuesday, February 26, 2019 Mayor Higgins called the meeting to order at 6:00 p.m. Attendance: Staff Rod Higgins,Mayor Mark Calhoun, City Manager Pam Haley, Deputy Mayor Cary Driskell, City Attorney Brandi Peetz, Councilmember Erik Lamb, Deputy City Attorney Linda Thompson,Councihmember Chelsie Taylor,Finance Director Ben Wick, Councilmember Mike Stone,Parks &Recreation Director Sam Wood, Councilmember Mark Werner, Police Chief Arne Woodard, Councilmember John Hohrnan, Deputy City Manager Bill Helbig, City Engineer Christine Bainbridge, City Clerk INVOCATION: Pastor Darrell Cole of Living Hope Community Church gave the invocation. PLEDGE OF ALLEGIANCE Council, staff, and the audience stood for the Pledge of Allegiance, led by several Boy Scouts in attendance. ROLL CALL City Clerk Bainbridge called the roll; all Councilmembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Haley, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS At the request of Mayor Higgins, City Attorney Driskell introduced District Court Judges Jeff Smith, Dick Leland, and Patrick Johnson, and Mayor Higgins extended a welcome and thanks to them for coming to tonight's meeting. COMMITTEE,BOARD,LIAISON SUMMARY REPORTS Councilmember Wood: said that he attended an STA (Spokane Transit Authority) meeting and that the transit center will be expanding with about a $5 million investment, which will help service to Spokane Valley and Millwood;said the STA completed their 69,000 sq.ft. garage which will be used to house buses, and also have room for electric buses; said ridership is down but revenues are up; and also reported that he attended the Chamber's business connection luncheon. Councilmember Peetz: reported that she attended the'Way to Go' awards in connection with the Commute Trip Reduction Program, and City employee Chris Thompson received an award; said she attended the Spokane City address; our Council's winter workshop; went to a health care ribbon cutting; a boy scout breakfast, and the Chamber's business connection luncheon. Councilmember Woodard: said he also attended our Council's winter workshop; said the City Action Days Conference in Olympia was cancelled due to the weather;he extended kudos to Mica Peak Alternative High School principal for doing such a great job with the kids and having a school environment designed to get the maximum impact for the students. Councilmember Thompson: stated that she attended the 50th anniversary of Multi-care Hospital, which she said was a fun event and that she remembered going to its original opening; participated in a webinar regarding the legislative agenda in connection with Association of Washington Cities (AWC), and got caught up on many of the pending bills; said she has been working with the National League of Cities (NLC) on their Safety and Crime Prevention committee and she is going to Washington, D.C. March 8th; said she also attended a Health Board meeting where they had an exit interview concerning the Board's programs, which audit came out very well. Minutes Regular Council Meeting:02-26=2019 Page 1 of 6 Approved by Council:03-12-2019 Councilmember Wick: reported that he attended the Board of Health Transition Committee, and said they have hired a consultant to do a search for their executive director; said legislation at the state is making its way through that applies to the Open Public Meetings Act which includes subcommittees, and said the Health Board and its committee want to make sure they publicly notice and invite the public to all their meetings, adding that the subcommittee meetings are held 7:00 a.m. Mondays, and said they will also publish their minutes on their website; said the Board of Health is also talking about a multi-year strategic plan. Councilmember Wick said he also attended the Visit Spokane meeting and that February 21 through March 2 is restaurant week, and he referenced the edition of the Inlander which lists participating restaurants; he stated that Visit Spokane's meetings are tied with the Public Facilities District(PFD), and that the downtown sportsplex has been progressing, and he suggested we invite members of the PFD to come give Council an update; he also noted Visit Spokane has adopted key performance indicators for 2019. Concerning the Freight Mobility Strategic Investment Board, Councilmember Wick reported that there is proposed legislation to allow triple trailers on semi-trucks, and the Board has been asked for their input on a pilot program; he also noted that triple trailers are currently against federal law, so if this legislation passes, it would be de-criminalized in our state, but the federal government warns it could jeopardize federal grant funds. Councilmember Wick also noted that the City of Liberty Lake's Council had celebrated annexation of part of the Central Valley School District area where a new high school will be built. Deputy Mayor Haley: reported that she attended a Planning Commission meeting, that she had never attended one and noticed it was very enlightening, interesting, casual but also very meaningful; said she also attended the STA meeting and mentioned that HB 1832 will force all transit agencies to go all-electric; said they were planning to go in that direction, but if this legislation passes,it will push them to do it sooner than they have the funds to handle such a change, as it means replacing the entire fleet; she also mentioned that paratransit ridership is down but that is actually good because the point of paratransit is to get people to their destination,which at times could take hours, so the decrease means that they have been able to get people who are able,back on a bus and thereby give them a little more freedom instead of sitting in the van for hours. MAYOR'S REPORT Mayor Higgins said he attended the Steering Committee of Elected Officials meeting, and noted that they have not had a meeting since October 2017; said they discussed finding available land in the County and about commissioning a study at a cost of about $75,000, which would have been split among our city, Spokane City, and Spokane County, but that since that October 2017 meeting, the City of Spokane conduced their own study; he noted that the realtors and Home Builders had offered to help defray some of the cost but they too have conducted their own study, which just leaves Spokane County and our City to split the cost if we were going to do that,and said he doesn't think we will do it either; said he attended the GSI (Greater Spokane,Inc.) Board meeting where they heard a legislative update by their lobbyist in Olympia and D.C. and said there is a lot of chaos in both places, adding that the transportation bill numbers are slated heavily toward the west side of the state. 1. CONSENT AGENDA: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion:I move to approve the Consent Agenda. a. Approval of claim vouchers on Feb 26,2019 Request for Council Action Form Total: $2,987,855.46 b. Approval of Payroll for Pay Period Ending January 31,2019: $572,435.66 e. Approval of Payroll for Pay Period Ending February 15, 2019: $313,417.86 d. Approval of January 29, 2019 Council Meeting Minutes, Study Session e. Approval of February 5, 2019 Council Meeting Minutes, Study Session It was moved by Deputy Mayor Haley, seconded and unanimously agreed to approve the consent agenda. NEW BUSINESS: 2. Resolution 19-003.Use of External City Hall by Third Parties—Cary Driskell It was moved by Deputy Mayor Haley and seconded to approve Resolution 19-003 restricting special event uses at City Hall, as drafted.Mr.DriskelI explained that when this was originally drafted,the intent was to Minutes Regular Council Meeting:02-26-2019 Page 2 of 6 Approved by Council:03-12-2019 preclude special events from City Hall, so this version makes it clear it addresses special events as they are defined by our municipal code 5.15; and instead of political events, which are also prohibited by state law, the language is `campaign' related events. Mayor Higgins invited public comment. Ms. Barb Howard, Spokane Valley: said if you look at the Spokane County Assessor's website, this is a government building and that is what it should be used for, and not parties or beer gardens, and she asked to please keep it a government building. Mr. Tim Lape, Spokane Valley: he questioned the City Manager being the gate-keeper for all requests and that such decision could not be appealed; said it seems there should be some avenue to address situations if someone disagrees with the City Manager's decision. Mr. Gilbert Mendosa, Spokane Valley: asked if there is a model regulation from other city halls; he asked why are we doing this and other city halls are not; said we have to be careful as city hall is for the people so we need to be careful in how it is restricted. Ms. Pat Dempsey, Spokane Valley: said it sounds like we are trying to infringe on people's right to free speech; said no one says you can't go to the White House, and said she is confused why a group of people can't be outside; said that's against their rights. In responding to this comment, City Attorney Driskell said this was never intended to be an infringement or against the First Amendment rights; said this doesn't change that at all, but instead of restricting political events, the resolution was changed to `campaign' related; and again said this would not change anyone's First Amendments rights; regarding a lack of an appeal, it is the City Manager who will determine whether a proposed function relates to the function of City Hall; said we have received several requests from people wanting to do special events because we don't charge a fee; said this building is not intended to be a party event, and there are other avenues to pursue for those activities such as CenterPlace or some of our parks; he said City Hall is the venue where we do business, and if someone wants to hold a political event, they may provide it does not interfere with people coming in and out of City Hall. Mr. Bob West, Spokane Valley: said lie agrees with the City Attorney that this site is not the place for car rallies; said his concern is that we have some expensive landscaping and sculptures,and we'd be looking at liability for those things we have invested a lot of money in;said the venue across the street might be better,as well as other venues; and that he hasn't heard of anyone trying to take away the right to free speech.There were no further public comments. Council discussion included Councilmember Thompson's comment that she appreciates the change in language to 'campaign.' Councilmember Wick said mentioned the annual Christmas lighting and said that we want people and encourage people to come and participate on our grounds; that we don't have power or water for booths, but maybe we need to clarify that if someone expects to have an event here, that we tell them not to expect power, water, or use of the restroom facilities; said he does not support this. City Manager Calhoun said that the Christmas tree lighting is a city-sponsored event and something we plan to continue; that the focus in this resolution is prohibiting commercial, religions and campaign events; there is also no alcohol permitted, and we don't want class reunions,weddings, and other similar events held at this venue. Vote by acclamation: In favor: Mayor Higgins, Deputy Mayor Haley, and Councilniembers Thompson, Peetz, Woodard, and Wood. Opposed: Councilmember Wick. Motion carried. 3. Resolution 19-004, Places Where Alcohol Consumption on City Property is Permitted — Mike Stone, Cary Driskell It was moved by Deputy Mayor Haley and seconded to approve Resolution 19-004 relating to alcohol consumption at City facilities and parks, as drafted. Parks and Recreation Director Stone explained about the changes as a result of the February 5 meeting discussion, so that all areas in CenterPlace may be available unless precluded by staff for operational reasons; and said there is also just one attachment which identifies all the areas that may be approved for alcohol consumption. Mr. Stone also re-emphasized that any alcohol consumption can only occur pursuant to a special events permit issued under chapter 5.15 of our City Code. Councilmember Peetz asked if this resolution can be changed later once Balfour Park is developed, and Mr. Driskell said we are in the business of re-addressing resolutions as needed, and as conditions change, we bring them forward. Councilmember Wick asked about the youth and others attending summer camps at CenterPlace and whether there could be alcohol events at the same time. Mr. Stone answered that when there are youth in the building,they are the number one priority;that the summer Minutes Regular Council Meeting:02-26-2019 Page 3 of 6 Approved by Council:03-12-2019 camps don't use the entire building, and they are there during the day; that events that use alcohol are usually on the weekends or evenings, and again stressed that we would never jeopardize that;that this gives us tools we have needed for several years and allows us flexibility, adding that memorials are becoming very big now and currently we are limited for those type of events. Councilmember Thompson asked if there are events being turned away because we couldn't provide the service or didn't have room. Mr. Stone replied that because of the size of the event and the impact to the west lawn and grounds to CenterPlace, there are certain things we don't allow; that many of these groups want a Valleyfest 'one day on steroids' and said it is difficult to accommodate that; he said Balfour is undeveloped so we could allow pony rides or inflatables there,but at CenterPlace,those are considered high risk; said he suspects when we update the master plan this year that will be a major part of the discussion, adding that already most weekends are completely booked. Mayor Higgins invited public comment. Ms.Barb Howard,Spokane Valley: asked if we are going to charge them to use Balfour,and who will clean up and will they respect the property. Ms. Nina FIuegal, Spokane Valley: said she doesn't think alcohol should be allowed in any public, outdoor venue; she asked where is the liability and the control; and she questioned why groups can't have an event for a couple of hours without alcohol as there are bars and private homes for that. There were no further public comments and Councihnember Thompson said she is opposed to having alcohol at Balfour Park, developed or undeveloped;that it is a park and if we allow that, the perception could be it would be available in other parks, and she suggested not allowing it to it doesn't open the door for that kind of activity. Councilmember Woodard asked how one gets to use the park and Mr. Stone said there is a special event permit required when alcohol is going to be served;there are banquet permits,and insurance regulations that fall under the rules of the State Liquor and Cannabis Board as these events take place under a liquor license; said the area is required to be monitored by security and is usually separated off like a beer garden; he said we don't have Balfour Park in our fee structure but the cost for a special event is $40.00; however, the event would be required to provide security, to adhere to health regulations, and clean up the trash and the area afterwards;there are also times when traffic plans must be approved by the City and the Police Department, so there will be costs. Vote by acclamation: In favor: Mayor Higgins, Deputy Mayor Haley, and Councihnembers Wick, Woodard, Peetz and WoodOpposed: Councilmember Thompson. Motion carried. 4.Mayoral Appointment: Eastern Wa.Area Agency on Aging,Planning&Mgmt Council—Mayor Higgins It was moved by Deputy Mayor Haley and seconded to confirm the appointment of Ms. Jean Kindem to the Eastern Washington Area Agency on Aging Planning and Management Council as Spokane Valley's representative,for a term of three years beginning with this appointment, and ending December 31, 2021. Mayor Higgins explained the background of our Council's involvement with the agency and of the availability of Ms.Kindem,who is already serving on the committee,to continue service as a representative of Spokane Valley. Mayor Higgins invited public comments; no comments were offered. Vote by acclamation:In favor: unanimous. Opposed: none. Motion carried. PUBLIC COMMENTS: After Mayor Higgins explained the process,he invited public comments. Ms.Nicole Luth, Legal Intern at Paine Hamblen Attorneys: spoke on behalf of their client the Black Pearl Casino as a follow-up response to the January 15, 2019 administrative report heard by Council; she mentioned the previously distributed handout which includes tax comparisons based on annual reports from the last three years,which charts show the item to be taxed, and the tax rate for the City of Spokane Valley compared with the City of Spokane,and the difference; and said if the Black Pearl Casino were to move to Spokane, they would save over $175,000; she also mentioned as noted in the assessment included on the handout,that the increased Admission tax is unlikely to affect the Black Pearl's operations; and even with Spokane's increased business license fee, it would still not offset the amount of tax on card games in Spokane Valley; and said she hopes to continue this conversation in order to keep the Black Pearl Casino's employees in Spokane Valley. Ms. Barb Howard, Spokane Valley: said she lives in Fairacres Mobile Home Park and that the park has covenants;said she was told by the City that the City does not recognize covenants; said she looked up her Minutes Regular Council Meeting:02-26-2019 Page 4 of 6 Approved by Council:03-12-2019 address on Spokane Valley's Incentive Area Map and it shows an empty lot; said she wants to know how to protect mobile homes parks so they don't include duplexes; said single family R3 should be what it is: single family; concerning snow removal, she asked what happened with that plan and asked if the City would be fining people who don't clear their sidewalks. Ms. Kirsten Fuchs, Spokane Valley: said she is the Coalition Coordinator for the East Valley Community Coalition, which works to help combat substance abuse through education; and whose members are interested in promoting health and wellness in the community; and she extended an invitation to Council to come to their meetings. Mr.John Harding, Spokane Valley: said he has concerns about the 5g and possible health effects;mentioned there are several universities as well as several nations also very concerned; said EMF emissions is the same concept the military used and is now available for weapons and it can do physical damage;he suggests we have some expert in this field come tell us how this radiation might affect humans; said we are using Chinese designed devises and the Chinese aren't a friendly group. Ms.Nina FIuegal, Spokane Valley: said she hears about Balfour Park and it being undeveloped, but said it isn't undeveloped, but is under-developed; said there is a play structure and an old volleyball court and restrooms; and she asked what part is undeveloped; said she thought the library owned the property and asked if it came back to the City; said how will private or special events effect the existing park; she mentioned the Appleway Trail and said there are still a lot of businesses who didn't remove snow from the sidewalks, and that Trail would be a good alternate route, but no one has cleared it so it can't be used; she asked if we fine business for not clearing their sidewalks, and if we do, perhaps those funds could be used to clear the Trail. ADMINISTRATIVE REPORTS: 5. District Court Presentation—Cary Driskell, Judge Jeff Smith City Attorney Driskell introduced Presiding Spokane County District Court Judge Jeff Smith, who in turn introduced Judge Leland, and Judge Johnson. Judge Smith went through his PowerPoint presentation showing photos of the various District Court Judges; he briefly explained about the organization of the court; then went through explanations about criminal cases, civil cases, types of hearings, types of filings by year showing total number and number of those in Spokane Valley for years 2015 through 2018;showed a pie chart depicting the percentages of filings, with infractions clearly the largest type of filings; he went over some of the best practice standards, then explained about the therapeutic courts such as the mental health court,the veterans court,and the DUI court; and shared some photos of the various courts in action. Council thanked the Judges for an informative report. 6. 2019 Budget Amendment—Chelsie Taylor Finance Director Taylor went over the budget amendments for the 2019 budget,which are included on the February 26, 2019 Request for Council Action form; adding that we are still waiting for cost finalization figures for the generators that were approved in the 2018 budget, and said that information will be coming forward in future months. Councilmember Wood asked several questions about the current budget such as rental ears, supplies, and how much was spent for the intersection improvement for the Carnahan property. After Ms. Taylor went over the figures to which Councilmember Wood was referring, City Manager Calhoun said Council had an information item on the Carnahan property in a council packet in January, and he will get a copy and provide that at Councilmember Wood's desk. There was Council consensus to move this budget amendment forward as proposed. 7. Advance Agenda—Mayor Higgins Couneilmember Wick suggested having an updated report about the Public Facilities District, and Council concurred. Councilmember Wood suggested revisiting graffiti and suggested the City offer a$1,000 reward for any information leading to the arrest and conviction of those who vandalize properties with graffiti;and to put that up on a billboard. City Attorney Driskell said there have been several provisions in the past Minutes Regular Council Meeting:02-26-2019 Page 5 of 6 Approved by Council: 03-12-2019 relative to graffiti and that he is not sure cash rewards would be in the best interest of the city, and that we did have several successful methods by our Police Department. Councilmember Wood said he wants to see that billboard to put those people on notice that others will be watching, and Mayor Higgins suggested further discussion first. Councilmember Wood also mentioned having someone come to a Council meeting to discuss EMF radiation. City Attorney Driskell said we do not have any in-house expertise and that falls into an area where we would not be able to do anything. Contacting the universities was suggested, and Councilmember Peetz suggested putting something on the City's Facebook page. Mr. Calhoun said he will check with Ms. Rose of Avista, and Mayor Higgins said the matter will be deferred until we hear further from Avista. INFORMATION ONLY(will not be reported or discussed): The (8)Remote Testimony item; and (9)Department Monthly Reports,were for information only and were not reported or discussed. CITY MANAGER COMMENTS City Manager Calhoun mentioned the City's snow removal ordinance; said we have had a series of storms over the last several weeks and once we get past that cycle, people will be expected to clear their walks within 48 hours of the conclusion of the event, and at that time for those not complying,Code Enforcement could issue warnings, and go through that process. Mr. Calhoun said it was also previously suggested by some members of Council that we have a special meeting with Liberty Lake; said he contacted Liberty Lake's City Administrator Ms. Katy Allen about such a meeting, and that they will discuss that idea next week; said there must be a specific agenda;that such a meeting would be gaveled in by each Mayor, and presided over by the hosting city; and he asked Council's interest in pursuing such a meeting, suggesting it not be held on a Tuesday evening since both cities generally meet that night. Councilmember Thompson asked about including the City of Millwood. Councilmember Woodard said he feels the Council of Governments meeting hosted by the County is the right place to talk about things we have in common; said if the intent is to have a free and open flowing dialogue, that won't likely happen with multiple councils; said we know what Liberty Lake is doing and vice-versa, and doesn't see what will be accomplished in a one-night joint meeting. Deputy Mayor Haley agreed that she too doesn't see the point in having a joint meeting. Councilmember Thompson mentioned the Chamber's `Big 5' and said perhaps we could discuss how to support that, and who is doing what and how to work together on that. Councilmember Peetz said her intention wasn't a free-flowing meeting, and realizes we would need an agenda, but said the cities have a lot of things in common, such as the Appleway Trail, Centennial Trail,or park master plans and it would be an opportunity to start a relationship between newer councilmembers. Mayor Higgins asked for a consensus of those who want to meet, and Councilmembers Wick,Peetz and Thompson indicted they were in favor of a meeting. (As the Governance Manual states that there must be a consensus of four or more Councilmembers to move an item forward, this item will not be pursued.) It was moved by Deputy Mayor Haley, seconded and unanimously agreed to adjourn. The meeting adjourned at 8:27 p.m. ./ A QST• L.R. Higgins, or re,44‘) /17 , 404 Y Christine Bainbridge, City Clerk Minutes Regular Council Meeting: 02-26-2019 Page 6 of 6 Approved by Council:03-12-2019 SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, February 26, 2019 6:00 p.m. Regular Meeting GENERAL CITIZEN COMMENTS SIGN-IN SHEET YOUR SPEAKING TIME WILL GENERALLY BE LIMITED TO THREE MINUTES This sign-in sheet is for making comments not associated with an action item on tonight's agenda. If you wish to comment about an individual action item on tonight's agenda (such a a otion to approve an ordinance, resolution, or contract) the Mayor will ask for comme s on ose items once that item is reached on the agenda. Please sign in if you wish to make public comments. NAME TOPIC OF CONCERN YOU YOUR CITY OF ' + IDENCE PLEASE PRINT WILL SPEAK ABOUT / N W ei_w,4-k. Cic iaun'' Ti L4 (,-1cr'1cx ,r`e; c\\-) \\N-cin VcAO Q m. cta\l`�1 Uk SVogliVULWAt\el Please note that once information is entered on this form, it becomes a public record subject to public disclosure. February 22, 2019 City of Spokane Valley, City Council 10210 E. Sprague Avenue Spokane Valley, WA 99206 Re: Black Pearl's response to City Council's concerns on additional taxes in the City of Spokane. Dear Couneilmembers, Included below is a tax comparison of the tax categories referenced in the January 15,2019 Administrative Report. This is being provided to you in advance of the February 26, 2019 Formal Council Meeting, where we plan to offer public comment on our findings discussed herein. We look forward to continued discussions on this matter. TAX COMPARISON BASED ON THE ANNUAL REPORTS FROM THE LAST THREE YEARS. City of 2016 Tax Rate Spokane Tax City of Rate Spokane Difference Valley Card Games 6% $288,111.65 2% $ 96,037.22 $ 192,074.43 Punch Board &Pull Tabs 5% $ 2,487.61 10% $ 4,975.23 ($ 2,487.61) Electricity&Natural Gas 0% $ 0 6% $ 2,301.49 ($ 2,301.49) Telephone 6% $284.45 6% $ 284.45 $ 0 Cable 0% $ 0 6% $ 624.77 ($ 624.77) Solid Waste 0% $ 0 20% $ 1,424.69 ($ 1,424.69) Water& Sewer 0% $ 0 20% $ 2,611.49 ($ 2,611.49) Totals $290,883.71 $ 108,259.34 $ 182,624.39 Tax City of Tax City of 2017 Rate Spokane Rate SpokaneDifference Valley Card Games 6% $ 279,441.99 2% $ 93,147.33 $ 186,294.66 Punch Board&Pull Tabs 5% $2,839.13 10% $ 5,678.25 ($ 2,839.13) Electricity&Natural Gas 0% $ 0 6% $2,357.02 ($ 2,357.02) Telephone 6% $ 432.74 6% $432.74 $ 0 Cable 0% $ 0 6% $ 586,50 ($ 586.50) Solid Waste 0% $ 0 20% $ 1,605.16 ($ 1,605.16) Water& Sewer 0% $ 0 20% $2,686.00 ($ 2,686.00) Totals $282,713.86 $ 106,493.00 $ 176,220.86 1 February 22, 2019 Tax City of Tax City of 2 Rate Spokane Rate Spokane Difference Valley Card Games 6% $ 277,953.44 2% $ 92,651.15 $ 185,302.29 Punch Board &Pull Tabs 5% $ 2,246.30 10% $ 4,492.60 ($2,246.30) Electricity&Natural Gas 0% $ 0 6% $ 2,220.86 ($2,220.86) Telephone 6% $ 539.27 6% $ 539.27 $ 0 Cable 0% $ 0 6% $ 61534 ($ 615.34) Solid Waste 0% $ 0 20% $ 1,635.94 ($ 1,635.94) Water& Sewer 0% $ 0 20% $2,234.79 ($ 2,234.79) Totals $280,739.01 $ 104,389.95 $ 176,349.06 ASSESSMENT • The overall impact of higher tax rates in the fiver other categories combined does not begin to off-set the burden created by the tax on Card Games. • The charts above show the actual amounts the Black Pearl spent for each tax category referenced in the administrative report and noted by Mayor Higgins (Spokane Valley highlighted in blue). These are then adjusted to reflect what the Black Pearl hypothetically would have spent in the same categories if located in Spokane (highlighted in green). o The Black Pearl would have saved over $175,000 based on the overall tax scheme used in Spokane, each year. • This gambling tax applies to the gross revenue of gambling proceeds, not the net revenue. As costs to operate the business continue to rise, whether through taxation or increased minimum wage, the profits or amounts available to reinvest in the business shrink. The Black Pearl cannot increase the price of a dollar gambled to offset the increased taxes or wages. • The City of Spokane Valley also noted an increased Admission Tax (5%). This tax is unlikely to affect the Black Pearls operations. Any tournament fees are taxed under the gambling tax. • The Spokane Business License fee would also increase to $117 with an additional fee of$20 per employee. With an estimated 105 employees, this fee would amount to $2,217 which still would not off-set the burden of the tax on Card Games in the Valley. • The Black Pearl received immense support from its patrons after these considerations became public. While many would prefer to see the Black Pearl stay in Spokane Valley, if it's a choice between relocating a few miles and no establishment at all, they are willing to go the extra miles. Punch Board&Pull Tabs;Electricity&Natural Gas; Cable; Solid Waste;and Water&Sewer. 2