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24-109.00BERKConsultingPhaseIIAnnexationStudy
Contract No.24-109.00 AGREEMENT FOR PROFESSIONAL SERVICES BERK Consulting THIS AGREEMENT is made by and between the City of Spokane Valley,a code City of the State of Washington, hereinafter "City" and BERK Consulting, hereinafter"Consultant,"jointly referred to as "Parties." IN CONSIDERATION of the terms and conditions contained herein,the Parties agree as follows: 1. Work to Be Performed. Consultant shall provide all labor, services, and material to satisfactorily complete the Scope of Services,attached as Exhibit A. A.Administration. The City Manager or designee shall administer and be the primary contact for Consultant. Prior to commencement of work, Consultant shall contact the City Manager or designee to review the Scope of Services,schedule,and date of completion. Upon notice from the City Manager or designee, Consultant shall commence work, perform the requested tasks in the Scope of Services,stop work,and promptly cure any failure in performance under this Agreement. B. Representations. City has relied upon the qualifications of Consultant in entering into this Agreement. By execution of this Agreement, Consultant represents it possesses the ability, skill, and resources necessary to perform the work and is familiar with all current laws, rules, and regulations which reasonably relate to the Scope of Services. No substitutions of agreed-upon personnel shall be made without the prior written consent of City. Consultant represents that the compensation as stated in paragraph 3 is adequate and sufficient for the timely provision of all professional services required to complete the Scope of Services under this Agreement. Consultant shall be responsible for the technical accuracy of its services and documents resulting therefrom, and City shall not be responsible for discovering deficiencies therein. Consultant shall correct such deficiencies without additional compensation except to the extent such action is directly attributable to deficiencies in City-furnished information. C. Standard of Care. Consultant shall exercise the degree of skill and diligence normally employed by professional consultants engaged in the same profession, and performing the same or similar services at the time such services are performed. D. Modifications. City may modify this Agreement and order changes in the work whenever necessary or advisable. Consultant shall accept modifications when ordered in writing by the City Manager or designee, so long as the additional work is within the scope of Consultant's area of practice. Compensation for such modifications or changes shall be as mutually agreed between the Parties. Consultant shall make such revisions in the work as are necessary to correct errors or omissions appearing therein when required to do so by City without additional compensation. 2. Term of Contract. This Agreement shall be in full force and effect upon execution and shall remain in effect until completion of all contractual requirements have been met as determined by City. Consultant shall complete its work by December 31, 2024, unless the time for performance is extended in writing by the Parties. Agreement for Professional Services(with professional liability coverage) Page 1 of 8 Contract No. 24-109.00 Either Party may terminate this Agreement for material breach after providing the other Party with at least 10 days'prior notice and an opportunity to cure the breach. City may,in addition,terminate this Agreement for any reason by 10 days' written notice to Consultant. In the event of termination without breach, City shall pay Consultant for all work previously authorized and satisfactorily performed prior to the termination date. 3.Compensation. City agrees to pay Consultant a flat fee of$28,530.00(which includes Washington State Sales Tax if any is applicable)as full compensation for everything done under this Agreement,as set forth in Exhibit B. Consultant shall not perform any extra,further,or additional services for which it will request additional compensation from City without a prior written agreement for such services and payment therefore. 4. Payment. Consultant shall be paid monthly upon presentation of an invoice to City. Applications for payment shall be sent to the City Finance Department at the below-stated address. City reserves the right to withhold payment under this Agreement for that portion of the work(if any)which is determined in the reasonable judgment of the City Manager or designee to be noncompliant with the Scope of Services,City standards,City Code,and federal or state standards. 5.Notice. Notices other than applications for payment shall be given in writing as follows: TO THE CITY: TO THE CONSULTANT: Name: Marci Patterson,City Clerk Name: Andrew Bjorn, PhD, AICP, and Lisa Grueter, BERK Consulting Phone: (509)720-5000 Phone: (206)493-2384 Address: 10210 East Sprague Avenue Address: 2200 Sixth Ave, Suite 1000 Spokane Valley,WA 99206 Seattle,WA 98121 6. Applicable Laws and Standards. The Parties,in the performance of this Agreement,agree to comply with all applicable federal, state, and local laws and regulations. Consultant states that its designs, construction documents,and services shall conform to all federal,state,and local statutes and regulations. 7. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions. A. By executing this Agreement, the Consultant certifies to the best of its knowledge and belief that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records,making false statements, or receiving stolen property; Agreement for Professional Services(with professional liability coverage) Page 2 of 8 Contract No.24-109.00 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph(A)(2)of this certification;and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions(federal,state,or local)terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification,such prospective participant shall attach an explanation to this Agreement. 8. Relationship of the Parties. It is understood and agreed that Consultant shall be an independent contractor and not the agent or employee of City,that City is interested in only the results to be achieved, and that the right to control the particular manner,method, and means in which the services are performed is solely within the discretion of Consultant. Any and all employees who provide services to City under this Agreement shall be deemed employees solely of Consultant. The Consultant shall be solely responsible for the conduct and actions of all its employees under this Agreement and any liability that may attach thereto. 9. Ownership of Documents. All drawings, plans, specifications, and other related documents prepared by Consultant under this Agreement are and shall be the property of City,and may be subject to disclosure pursuant to chapter 42.56 RCW or other applicable public record laws. The written, graphic, mapped, photographic, or visual documents prepared by Consultant under this Agreement shall, unless otherwise provided, be deemed the property of City. City shall be permitted to retain these documents, including reproducible camera-ready originals of reports,reproduction quality mylars of maps,and copies in the form of computer files,for the City's use. City shall have unrestricted authority to publish,disclose,distribute, and otherwise use,in whole or in part,any reports,data,drawings,images,or other material prepared under this Agreement, provided that Consultant shall have no liability for the use of Consultant's work product outside of the scope of its intended purpose. 10.Records. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of Consultant's records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit, examine, make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, and record of matters covered by this Agreement for a period of three years from the date final payment is made hereunder. 11.Insurance. Consultant shall procure and maintain for the duration of the Agreement,insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by Consultant,its agents,representatives,employees,or subcontractors. A. Minimum Scope of Insurance. Consultant's required insurance shall be of the types and coverages as stated below: 1. Automobile liability insurance covering all owned, non-owned, hired, and leased vehicles. Coverage shall be at least as broad as Insurance Services Office(ISO)form CA 00 01. 2.Commercial general liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises,operations,stop-gap independent contractors and personal injury, and advertising injury. City shall be named as an Agreement for Professional Services(with professional liability coverage) Page 3 of 8 Contract No.24-109.00 additional insured under Consultant's commercial general liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26. 3. Workers' compensation coverage as required by the industrial insurance laws of the State of Washington. 4.Professional liability insurance appropriate to Consultant's profession. B.Minimum Amounts of Insurance. Consultant shall maintain the following insurance limits: 1.Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of$1,000,000 per accident. 2. Commercial general liability insurance shall be written with limits no less than $2,000,000 each occurrence, and$2,000,000 general aggregate. 3. Professional liability insurance shall be written with limits no less than$2,000,000 per claim and$2,000,000 policy aggregate limit. C.Other Insurance Provisions. The Consultant's policies are to contain,or be endorsed to contain, the following provisions for automobile liability and commercial general liability insurance: 1. Consultant's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or self-insured pool coverage maintained by City shall be in excess of Consultant's insurance and shall not contribute with it. 2.Consultant shall provide City and all additional insured for this work with written notice of any policy cancellation within two business days of their receipt of such notice. 3. If Consultant maintains higher insurance limits than the minimums shown above, City shall be insured for the full available limits of commercial general and excess or umbrella liability maintained by Consultant, irrespective of whether such limits maintained by Consultant are greater than those required by this Agreement or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by Consultant. 4.Failure on the part of Consultant to maintain the insurance as required shall constitute a material breach of the Agreement, upon which the City may, after giving at least five business days' notice to Consultant to correct the breach, immediately terminate the Agreement, or at its sole discretion,procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to City on demand,or at the sole discretion of the City, offset against funds due Consultant from the City. D.Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.Best rating of not less than A:VII. E. Evidence of Coverage. As evidence of the insurance coverages required by this Agreement, Agreement for Professional Services(with professional liability coverage) Page 4 of 8 Contract No.24-109.00 Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Agreement before commencement of the work. 12. Indemnification and Hold Harmless. Consultant shall, at its sole expense, defend, indemnify, and hold harmless City and its officers,agents,and employees,from any and all claims,actions,suits,liability, loss, costs, attorney's fees, costs of litigation, expenses, injuries, and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts,errors,or omissions in the services provided by Consultant, Consultant's agents, subcontractors, subconsultants, and employees to the fullest extent permitted by law,subject only to the limitations provided below. However, should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City,its officers, officials, employees, and volunteers, the Consultant's liability, including the duty and cost to defend, hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant's waiver of immunity under Industrial Insurance, Title 51, RCW, solely for the purpose of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 13.Waiver. No officer,employee,agent,or other individual acting on behalf of either Party has the power, right,or authority to waive any of the conditions or provisions of this Agreement. A waiver in one instance shall not be held to be a waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law shall be taken and construed as cumulative and in addition to every other remedy provided herein or by law. Failure of either Party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other Party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof. 14. Assignment and Delegation. Neither Party shall assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without prior written consent of the other Party. 15. Subcontracts. Except as otherwise provided herein, Consultant shall not enter into subcontracts for any of the work contemplated under this Agreement without obtaining prior written approval of City. 16. Confidentiality. Consultant may,from time-to-time,receive information which is deemed by City to be confidential. Consultant shall not disclose such information without the prior express written consent of City or upon order of a court of competent jurisdiction. 17. Jurisdiction and Venue. This Agreement is entered into in Spokane County, Washington. Disputes between City and Consultant shall be resolved in the Superior Court of the State of Washington in Spokane County. Notwithstanding the foregoing, Consultant agrees that it may, at City's request, be joined as a party in any arbitration proceeding between City and any third party that includes a claim or claims that arise out of, or that are related to Consultant's services under this Agreement. Consultant further agrees that the Arbitrator(s)' decision therein shall be final and binding on Consultant and that judgment may be entered upon it in any court having jurisdiction thereof. Agreement for Professional Services(with professional liability coverage) Page 5 of 8 Contract No.24-109.00 18. Cost and Attorney's Fees. The prevailing party in any litigation or arbitration arising out of this Agreement shall be entitled to its attorney's fees and costs of such litigation or arbitration(including expert witness fees). 19. Entire Agreement. This written Agreement constitutes the entire and complete agreement between the Parties and supersedes any prior oral or written agreements. This Agreement may not be changed, modified,or altered except in writing signed by the Parties hereto. 20.Anti-kickback. No officer or employee of City,having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted,or granted a present or future gift,favor,service,or other thing of value from any person with an interest in this Agreement. 21. Business Registration. Consultant shall register with the City as a business prior to commencement of work under this Agreement if it has not already done so. 22. Assurance of Compliance with Applicable Federal Law. During the performance of this Agreement, the Consultant,for itself,its assignees,and successors in interest agrees as follows: A. Compliance with Regulations. Consultant shall comply with the federal laws set forth in subsection G, below ("Pertinent Non-Discrimination Authorities") relative to non-discrimination in federally-assisted programs as adopted or amended from time-to-time, which are herein incorporated by reference and made a part of this Agreement. B. Non-discrimination. Consultant,with regard to the work performed by it during this Agreement, shall not discriminate on the grounds of race,color,or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. Consultant shall not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR Part 21. C. Solicitations for Subcontracts, Including Procurements of Materials and Equipment. In all solicitations, either by competitive bidding, or negotiation made by Consultant for work to be performed under a subcontract, including procurements of materials,or leases of equipment, each potential subcontractor or supplier shall be notified by Consultant of Consultants'obligations under this Agreement and the Acts and the Regulations relative to non-discrimination on the grounds of race,color,or national origin. D. Information and Reports. Consultant shall provide all information and reports for the City of Spokane Valley Annexation Study, required by the Acts, the regulations, and directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the City or the WSDOT to be pertinent to ascertain compliance with such Acts,regulations,and instructions.Where any information required of Consultant is in the exclusive possession of another who fails or refuses to furnish the information, Consultant shall so certify to the City or the WSDOT, as appropriate, and shall set forth what efforts it has made to obtain the information. Agreement for Professional Services(with professional liability coverage) Page 6 of 8 Contract No.24-109.00 E. Sanctions for Noncompliance. In the event of a Consultant's noncompliance with the non- discrimination provisions of this Agreement,the City will impose such contract sanctions as it or the WSDOT may determine to be appropriate,including,but not limited to: 1. Withholding payments to Consultant under the Agreement until Consultant complies; and/or 2. Cancelling,terminating,or suspending the Agreement, in whole or in part. F. Incorporation of Provisions. Consultant shall include the provisions of Section 22 of this Agreement in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts,regulations and directives issued pursuant thereto.Consultant shall take action with respect to any subcontract or procurement as the City or the WSDOT may direct as a means of enforcing such provisions, including sanctions for noncompliance. Provided, that if Consultant becomes involved in, or is threatened with litigation by a subcontractor or supplier because of such direction,Consultant may request that the City enter into any litigation to protect the interests of the City. In addition, Consultant may request the United States to enter into the litigation to protect the interests of the United States. G. Pertinent Non-Discrimination Authorities: During the performance of this Agreement, the Consultant agrees to comply with the following non-discrimination statutes and authorities; including but not limited to: Title VI of the Civil Rights Act of 1964(42 U.S.C. §2000d et seq.,78 stat.252),(prohibits discrimination on the basis of race,color,national origin);and 49 CFR Part 21;and 49 Part 26; The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. §4601),(prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); Federal-Aid Highway Act of 1973, (23 U.S.C. §324 et seq.), (prohibits discrimination on the basis of sex); Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. §794 et seq.), as amended, (prohibits discrimination on the basis of disability);and 49 CFR Part 27; The Age Discrimination Act of 1975, as amended, (42 U.S.C. §6101 et seq.), (prohibits discrimination on the basis of age); Airport and Airway Improvement Act of 1982, (49 U.S.C. §471, Section 47123), as amended,(prohibits discrimination based on race,creed,color,national origin,or sex); The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964,The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973,by expanding the definition of the terms"programs or activities"to include all of the programs or activities of the Federal- aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); Agreement for Professional Services(with professional liability coverage) Page 7 of 8 Contract No. 24-109.00 Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems,places of public accommodation,and certain testing entities(42 U.S.C. §§12131- 12189)as implemented by Department of Transportation regulations at 49 C.F.R.parts 37 and 38; The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. §47123) (prohibits discrimination on the basis of race,color,national origin,and sex); Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures Non-discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of Limited English proficiency(LEP). To ensure compliance with Title VI,you must take reasonable steps to ensure that LEP persons have meaningful access to your programs(70 Fed.Reg.at 74087 to 74100); and Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities(20 U.S.C. §1681 et seq.). 23. Severability. If any section,sentence,clause,or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction,such invalidity shall not affect the validity of any other section,sentence,clause, or phrase of this Agreement. 24. Exhibits. Exhibits attached and incorporated into this Agreement are: A. Scope of Services B.Fee proposal C. Insurance Certificates The Parties have executed this Agreement this S/Ti-day of 5 ...E ,20 241( CITY OF SPOKANE VALLEY Consultant: Jo ohman, City Manager By: Lisa Grueter Its: Authorized Representative APPR VED AS TO RM: ffi f the City Atto ney Agreement for Profe tonal Services(with professional liability coverage) Page 8 of 8 Exhibit A Scope of Services - Phase II As part of the initial request for qualifications, the City of Spokane Valley expressed an interest in evaluating the following regarding its current UGAs and potential annexation areas: ■ The ability of the city and other applicable entities to provide required public services. ■ The financial impact of providing the required public services and potential revenues. ■ Analysis of the impact of city bonded indebtedness upon property within the proposed annexation area. ■ Analysis of logical boundaries, critical areas, topographic changes, or other elements impacting the provision of services or potential development. ■ Identification of potential zoning for the proposed annexation area. ■ Specific fiscal impacts —cost and revenues — of annexations during the first five years after annexation. ■ Potential long-term fiscal impacts of annexation assessing high-level potential impacts over the next 20 years to identify long-term risks. The first phase of this work involved providing: ■ A delineation of individual subareas within the Spokane Valley UGA for review and assessment. ■ An assessment of available buildable lands within these areas, with a focus on the potential for new residential and commercial development. ■ An evaluation of additional areas outside of the UGA that could be the subject of a future UGA expansion and would be an area of future interest for annexation. ■ Preliminary recommendations regarding the prioritization of annexation for individual areas, based on underlying land use and available buildable capacity. This work was summarized as part of a December 2023 memo submitted to city staff. As part of the second phase, these initial results will be extended with an assessment of the fiscal sustainability of future annexation of selected areas from the first phase of work. The intent of this will be to develop a consistent annexation strategy that the city can use in the future to guide ongoing land use planning decisions. We envision the following steps as part of the second phase: 1 . Project startup and data collection As part of the second phase of the project, we will coordinate with city staff to acquire the necessary data and develop an initial workplan. This phase would include: 1.1 Coordinate project kickoff meeting We will meet with key city staff to discuss the project and review an initial workplan. This will include the final selection of target subareas for review, as well as a discussion on the final deliverables and any major considerations with respect to data, timing, or political sensitivities regarding the final results. 1.2 Hold regular project meetings We will coordinate regular meetings between our team and city staff to discuss progress on the workplan, review project deliverables, and provide presentations of relevant materials. The schedule for these meetings will be determined as part of the project kick-off meeting and will extend for the duration of the project. 1.3 Compile required information As part of the kickoff meeting, we will provide a follow-up data request list to the city Project Manager. This will include any necessary updates to the major GIS layers used as part of the initial phase of the project, as well as all necessary budgetary data from the city and county to develop an annexation model. 2. Evaluation of fiscal sustainability of future annexation As part of the project's initial phase, an assessment of the buildable lands in the study area has been developed. Using this information, we will assess the fiscal implications of integrating these areas into the city, which will broadly focus on the impact of annexation on the finances of the city, including both expenses and income. The evaluation will also review the effects of annexation on other service providers and explore short- and long-term consequences for the city's fiscal sustainability. 2.1 Determination of fiscal model inputs and scenarios We will draw from elements of the buildable lands analysis to provide inputs for the fiscal analysis. This will include estimations of: • New property value after development • Expected housing and non-residential development yields (units/square footage by type) • Expected population and employment • Changes in service usage We will also develop inputs for four different steps to address questions based on timing: ■ Current conditions • Likely conditions over the short-term (five years) • Likely conditions over the long-term (20 years) • Conditions at full build-out We will use the five- and 20-year estimates of local conditions to provide a clear understanding to the city about the expected changes in financial impacts over time. o mi'I May 2024 I City of Spokane Valley I Annexation Analysis Part II- Proposed Scope+ Budget 2 2.2 Assessment of municipal revenue impacts As part of our fiscal model, we will utilize these inputs to provide estimates of changes in municipal revenue. This will include discussions of: • Property taxes ■ Sales taxes (taxable retail sales on construction plus the 10-year sales tax option, if applicable) • Utility taxes • Licenses and permits • Intergovernmental transfers • Charges for services, fines/forfeiture, etc. These estimates will be provided across the time steps noted above to present how revenue from these areas will be expected to change over the short- and long-term with development. 2.3 Assessment of municipal cost impacts In addition to estimates of revenue changes, we will also provide a general estimate of increases in costs to the city from annexation. These costs can be generally divided into two categories: • Capital costs, including both facility and infrastructure costs that would need to be expanded as a result of an annexation. This would incorporate new and replacement facilities, as well as upgrades to meet city standards and levels of service. ■ Operating costs, which include regular staffing costs, maintenance and preservation of capital facilities, and other associated costs. Information on expected changes in costs will be based on different sources. Where possible, estimates of costs for new capital facilities and infrastructure as well as associated maintenance and preservation will be received from city departments, including Community and Public Works. Other municipal expenditures, especially with respect to general services, may be provided on a per capita and per job basis and projected from previous budgets. 2.4 Assessment of impacts to service providers Given the significant role of service providers other than the city in Spokane Valley, we will present a cursory analysis of the potential impacts of annexation on other providers. This assessment will be focused on addressing two relevant questions: • Are there any expected changes in fees or service delivery resulting from annexation? • Are there any financial constraints in these external systems that may impact future management? The intent of these two questions is primarily to determine how these providers could impact annexation going forward. If changes in fees or tax revenue (in the case of special districts) would affect regular revenue, that may have broader implications about the viability of the annexation. :iii May 2024 I City of Spokane Valley I Annexation Analysis Part II - Proposed Scope + Budget 0 3 2.5 Assessment of impacts to residents and landowners Finally, as annexations require the direct or implicit approval of annexed residents and landowners, we will provide supporting information on the expected changes in their annual costs. This will include projected changes in: ■ Property taxes, based on different levies and levy limits ■ Sales and use taxes ■ Other fees and licenses ■ Utility costs Additionally, we will also provide an evaluation of the assumption of city debt as needed. 2.6 Provide a summary memo on fiscal impacts Based on the work in this phase, we will coordinate a memo describing the methods used to assess fiscal impacts, as well as the findings. A draft will be provided to the city for review and feedback, and we will develop a final version to consider these comments. As with the previous section, this is intended as a chapter in a full report if this phase will be integrated with the other sections. 3. Coordination of strategic annexation planning The project's final stage will draft an annexation strategy for the city based on this work and the work in the first phase. It will serve as a non-binding guide for city staff, the Planning Commission, and the Council on future expansion decisions. 3.1 Determine individual strategies for discrete areas Based on the work conducted in previous phases, we will coordinate with city staff to develop specific strategies for individual areas. These strategies will consider several elements, including: ■ The likely instrument used for annexation (e.g., election, petition, interlocal agreement, islands, etc.) ■ The expected timeline for annexation (immediate to long-term) ■ Pre-conditions for annexation, such as necessary infrastructure investments ■ Expected zoning for annexed areas These elements may be defined at different levels of detail based on the expected timeline and scale of individual annexed areas. Note that while this strategy will include annexation timelines, it will not mandate annexation for residents or landowners. Instead, this will be intended as a guide on how the city should invest to support future annexation, and when annexation may occur if pursued. 3.2 Develop clear guidelines for evaluating future annexation proposals From the strategies developed in Task 4.1, we will provide clear guidance to Council on the review of future petitions for annexation initiated by local interests in the UGAs. These will be based specifically on the objectives and factors included under RCW 36.93.170 and 1 80. r1" May 2024 1 City of Spokane Valley 1 Annexation Analysis Part II - Proposed Scope + Budget 4 3.3 Create an implementation strategy In addition to guidelines, there are also other steps that will be necessary to coordinate future annexation activities. This may include: • Negotiation on any recommended interlocal agreements for annexation with Spokane County • Coordination of future public engagement, including informational materials and outreach efforts • Development of key recommendations for infrastructure and planning to support future annexation The final implementation strategy will offer specific actions for city staff and partners. It will recognize that some landowners or residents may oppose annexation, or the city may choose not to annex certain areas within the short- or moderate-term (within the next 10-20 years). 3.4 Compile a final report and presentation We will compile the work conducted over the entire project and provide a single, unified report as a project deliverable. We will coordinate a final review with city staff, and submit this report at the end of the project for future use by the city. This task will also include a presentation of the results to the city. Budget and Schedule For this second phase, we anticipate a total budget of $28,530 inclusive of all hourly rates and project expenses. A breakdown of costs by task is provided below, which may be changed as part of initial discussions of the project. We expect that this project will require about 4 months to complete starting in May 2024, with the final deliverable due in mid-August 2024. Our hourly rates include all overhead rates and direct salary costs. Any task/work request considered to be outside the agreed upon scope and contracted duties that will incur fees, will be communicated by our team and agreed to by the city before performance of that task/work request. Please note that BERK bills on a monthly basis for work completed in the prior month. All bills are reviewed by the Project Manager and sent directly to the client or client's designee via email. :i,l May 2024 I City of Spokane Valley I Annexation Analysis Part II- Proposed Scope + Budget 5 EXHIBIT B FEE PROPOSAL Phase 2 Exhibit 1.Project Budget. BERK Consulting Andrew Katherine Josh Linden Oliver Hirn Total Total Cost Bjorn Goetz Hours Associate Senior Senior Associate II Principal I Associate I Associate I 2024 Hourly Rate $210 $180 $180 $150 Task 1.Project startup and data collection 8 2 1 1 12 $2,370 Task 2.Evaluation of fiscal sustainability of future annexation 16 32 8 40 96 $16,560 Task 3.Coordination of strategic annexation planning 8 16 8 24 56 $9,600 Total Estimated Hours 32 50 17 65 164 Cost(Hours*Rate) $6,720 $9,000 $3,060 $9,750 Estimated Project Total $28,530 :III May 2024 I City of Spokane Valley I Annexation Analysis-Proposed Scope+Budget 1 6 DATE(MM/DD/YYYY) ACOR ® CERTIFICATE OF LIABILITY INSURANCE 5/23/2024 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT PhillipNaples NAME: p THE PHONE (360)502-7815 FAX t> PARTNERS 4A(C.No.Ext): (A/C,No): The Partners Group E-MAIL serviceteam@t r corn 11850 SW 67th Avenue,Suite 100 GROUP ADDRESS: pg p' Portland Oregon,97223 INSURER(S)AFFORDING COVERAGE NAIL# INSURER A: Underwriters at Lloyd's London 15642 INSURED INSURER B: National Fire Insurance Of Hartford 20478 BERK Consulting,Inc INSURER C: Travelers Casualty and Surety Company of America 31194 2200 Sixth Ave,Suite 1000 INSURER D: Continental Casualty 20443 Seattle Washington,98121 INSURER E: _ INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE INSD SUBR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ DAMAGE TO RENTED CLAIMS-MADE OCCUR PREMISES(Ea occurrence) $ MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ POLICY PRO- JECT LOC PRODUCTS-COMP/OPAGG $ OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ (Ea accident) ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE N/A E.L.EACH ACCIDENT $ OFFICER/MEMBEREXCLUDED? (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ Limit $500000.00 C ERISA Bond 106640464 03/01/2023 03/01/2026 • DESCRIPTION OF OPERATIONS I LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) R0010966 Spokane Valley Annexation Phase II The City of Spokane Valley is named as additional insured with waiver of subrogation and includes primary non-contributory insurance condition with regards to the general liability when required in written agreement or contract with the Named Insured and usual to the Insured's operations per policy provision,subject to policy terms and conditions. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Spokane Valley THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 10210 East Sprague Avenue ACCORDANCE WITH THE POLICY PROVISIONS. Spokane Valley Washington,99206 AUTHORIZED REPRESENTATIVE Phillip Naples ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD DATE(MMIDD/YYYY) AC® CERTIFICATE OF LIABILITY INSURANCE 5/23/2024 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Phillip Naples NAME:PH p p The Partners Group THE (A/C No.Ext): (360)502-7815 FAX No): 11850 SW 67th Avenue,Suite 100 � GROUPE RS E-MAIL se viceteam@t r com ADDRESS: pg p' Portland Oregon,97223 INSURER(S)AFFORDING COVERAGE NAIC# INSURER A: Underwriters at Lloyd's London 15642 INSURED INSURER B: National Fire Insurance Of Hartford 20478 BERK Consulting,Inc INSURER C: Travelers Casualty and Surety Company of America 31194 INSURER D: Continental Casualty Sixth Ave,Suite 1000 20443 Seattle Washington,98121 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRL TYPE OF INSURANCE INSD WVD POLICY NUMBER /Y SUER ADDL POLICY EFF POLICY EXP LIMITS (MM/DDYYY) (MM/DD/YYYY) X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $2000000.00 CLAIMS-MADE X OCCUR DAMAGE TO RENTED PREMISES(Ea occurrence) $1000000.00 MED EXP(Any one person) $10000.00 g Y y 4017749887 09/18/2023 09/18/2024 PERSONAL&ADV INJURY $2000000.00 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4000000.00 PRO X POLICY JECT LOC PRODUCTS-COMP/OPAGG $4000000.00 OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) $1000000.00 ANY AUTO BODILY INJURY(Per person) $ B OWNED SCHEDULED 4017749887 09/18/2023 09/18/2024 BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY _ AUTOS ONLY (Per accident) X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $2000000.00 D EXCESS LIAB CLAIMS-MADE Y Y 4017751039 09/18/2023 09/18/2024 AGGREGATE $2000000.00 _ X DED RETENTION$ $10,000 $ WORKERS COMPENSATION PEPERTUTE X EROH STOPGAP AND EMPLOYERS'LIABILITY Y/N B OF IC R//MEMB REXCLU ED?ECUTIVE N N/A 4017749887 09/18/2023 09/18/2024 E.L.EACH ACCIDENT $1000000.00 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $1000000.00 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $2000000.00 Each Claim $2000000.00 A Professional Liability W16985231001 09/18/2023 09/18/2024 General Aggregate $2000000.00 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) R0010966 Spokane Valley Annexation Phase II The City of Spokane Valley is named as additional insured with waiver of subrogation and includes primary non-contributory insurance condition with regards to the general liability when required in written agreement or contract with the Named Insured and usual to the Insured's operations per policy provision,subject to policy terms and conditions. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Spokane Valley THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 10210 East Sprague Avenue ACCORDANCE WITH THE POLICY PROVISIONS. Spokane Valley Washington,99206 AUTHORIZED REPRESENTATIVE Phillip Naples ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD