2024, 09-03 Format B Meeting
AGENDA
SPOKANE VALLEY CITY COUNCIL
REGULAR MEETING
FORMAL B FORMAT
Tuesday, September 3, 2024 6:00 p.m.
Remotely via ZOOM Meeting and
In Person at Spokane Valley City Hall, Council Chambers
10210 E. Sprague Ave.
Spokane Valley, WA 99206
Council Requests Please Silence Your Cell Phones During Council Meeting
NOTE: Members of the public may attend Spokane Valley Council meetings in-person at the address provided
above, or via Zoom at the link below. Members of the public will be allowed to comment in-person or via
Zoom as described below. Public comments will only be accepted for those items noted on the agenda as
If making a comment via Zoom, comments must be received by 4:00 pm the
day of the meeting.
Sign up to Provide Oral Public Comment at the Meeting via Calling-In
Submit Written Public Comment Prior to the Meeting
Join the Zoom WEB Meeting
-------------------------------------------------------------------------------------------------------------------------------
CALL TO ORDER
INVOCATION:
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF AGENDA
SPECIAL GUESTS/PRESENTATIONS:
PROCLAMATIONS:
GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on
matters within the jurisdiction of the City Government. This is not an opportunity for questions or discussion.
Diverse points of view are welcome but please keep remarks civil. Remarks will be limited to three minutes
per person. If a person engages in disruptive behavior or makes individual personal attacks regarding matters
the three-minute mark. To comment via zoom: use the link above for oral or written comments as per those
directions. To comment at the meeting in person: speakers may sign in to speak but it is not required. A sign-
in sheet will be provided at the meeting.
ACTION ITEMS:
1. Motion Consideration: Stormwater Services Contract Amendment - Adam Jackson
\[public comment opportunity\]
NON-ACTION ITEMS:
2. Admin Report: Stormwater Improvement Plan Adam Jackson
3. Admin Report: Potential Grant Opportunity, WSDOT Traffic Analytics - Adam Jackson, Jerremy Clark
4. Admin Report: Short Term Rental Review Lesli Brassfield, Chelsie Taylor
Council Agenda September 3, 2024 Page 1 of 2
5. Admin Report: TPA Written Report, 2025 Budget & Work Plan - Lesli Brassfield
INFORMATION ONLY (will not be reported or discussed):
GENERAL PUBLIC COMMENT OPPORTUNITY: General public comment rules apply.
COUNCIL COMMENTS
CITY MANAGER COMMENTS
ADJOURNMENT
Council Agenda September 3, 2024 Page 2 of 2
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: September 3, 2024 Department Director Approval:
Check all that apply: consent old business new business public hearing
informationadmin. reportpending legislationexecutive session
AGENDA ITEM TITLE:Motion Consideration –Stormwater Services Contract Amendment #2
GOVERNING LEGISLATION: SVMC 3.35.10 – Contract Authority
PREVIOUS COUNCIL ACTION TAKEN:
August 22, 2023 – City Council passed a motion to award the Stormwater Services
Contract to Cameron Reilly, LLC, in an amount not to exceed $350,000.
BACKGROUND: The stormwater services contract allows the city to repair or replace damaged
stormwater facilities and improve ‘trouble spots’ around the city. Project locations are typically
identified through inspections or citizen complaints. Historically, these small-works type projects
have gone unresolved because the utility was unable to fund the repairs, replacements or
improvements. The work provided by this contract is important for sustaining the stormwater
system’s overall level of service. The work performed is paid on a time and materials basis by
individual work orders.
The original contract was executed September 11, 2023, and includes up to three optional
renewal years. The original contract was executed relatively late in the year and weather limited
the construction window. Amendment #1 was a zero-cost change that extended the contract
through 2024. The proposed amendment would increase the contract amount from $350,000 to
$550,000, an increase of $200,000. The additional funds will install approximately 75 pervious
gravel shoulders along non-curbed streets that experience ponding and flooding into the
roadway travel lanes, gravel shoulders, front lawns, and driveways of adjacent properties. This
work will be completed in the fall of 2024.
OPTIONS: 1) Approve the Contract Amendment and proceed with the work, 2) Not approve the
Contract Amendment.
RECOMMENDED ACTION OR MOTION: Move to approve Contract Amendment #2 to
Cameron Reilly, LLC resulting in a total contract amount not to exceed $550,000, and authorize
the City Manager to finalize and execute the amendment.
BUDGET/FINANCIAL IMPACTS: The 2024 budget for Fund #402 – Stormwater Management
Fund includes $750,000 for stormwater services work. If the amendment is approved, $550,000
of the available budget will be encumbered by this contract.
STAFF CONTACT: Adam Jackson, Engineering Manager
ATTACHMENTS: Contract Amendment #2 – Added funds for stormwater services
PowerPoint
Stormwater Services
Types of Improvements
Requested $200,000
–
Additional Services
CONTRACT AMENDMENT TO THEAGREEMENT BETWEEN THE CITY OF
SPOKANE VALLEY AND*CAMERON REILLY, LLC*
Spokane Valley Contract #23-104.02
For good and valuable consideration, the legal sufficiency of which is hereby acknowledged, City and the
Cameron Reilly, LLC mutually agree as follows:
1. Purpose: This Amendment is for the Contract for stormwater facility maintenance service by and between
the Parties, executed by the Parties on September 11, 2023, and which terminates on December 31, 2024.
Said contract is referred to as the “Original Contract” and its terms are hereby incorporated by reference.
2. Original Contract Provisions: The Parties agree to continue to abide by those terms and conditions of the
Original Contract and any amendments thereto which are not specifically modified by this Amendment.
3. Amendment Provisions: The Original Contract is subject to the following amended provisions, which
are as follows. All such amended provisions are hereby incorporated by reference herein and shall control
over any conflicting provisions of the Original Contract, including any previous amendments thereto.
Amendment No. 2 provides funds for additional stormwater services work, as applied to the utility’s on-
going work order list, including, but not limited to, ponding mitigation via installation of pervious gravel
shouldering. Section 3 of the Contract is amended to provide a maximum compensation of $550,000 for
2024 only.
4. Compensation Amendment History: This is Amendment# 2 of the Original Contract. The history of
amendments to the compensation on the Original Contract and all amendments is as follows:
Date Total Compensation
Original Contract Amount September 11, 2023 $350,000.00
Amendment #1 – Extend expiration date December 22, 2023 $ 0.00
Amendment #2 – This amendment To be executed $200,000.00
Total Amended Compensation $550,000.00
The parties have executed this Amendment to the Original Contract this day of September,
2024.
CITY OF SPOKANE VALLEY: CAMERON REILLY, LLC:
John Hohman By: Jayson Grainger
City Manager Its: Authorized Representative
APPROVED AS TO FORM:
Office of the City Attorney
1
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: September 03, 2024 Department Director Approval:
Check all that apply: consent old business new business public hearing
informationadmin. reportpending legislationexecutive session
AGENDA ITEM TITLE:Administrative Report: 6-Year Stormwater ImprovementProgram
GOVERNING LEGISLATION: RCW 36.70A.070 – Comprehensive Plans-Mandatory Elements,
SVMC Chapter 3.80 – Storm and Surface Water Utility, and SVMC Chapter 22.150 –
Stormwater Management Regulations
PREVIOUS COUNCIL ACTION TAKEN:
November 8, 2022 – Motion Passed to increase the Stormwater Utility fee to $58/year
per ERU with an annual increase consistent with the CPI.
June 8, 2004 – City Council passed Resolution 04-016 approving the inclusion of the city
in the Spokane Aquifer Protection Area for the entirety of years 2006-2025.
BACKGROUND:
Staff will discuss the 2025-2030 Stormwater Improvement Program (SIP). RCW 36.70A.070 –
Comprehensive Plans - Mandatory Elements, requires the City’s Comprehensive Plan to include
a ‘capital facilities plan’ for the stormwater utility. A subset of this plan is a regular update to the
SIP, which outlines planned stormwater projects for the next six years.
The SIP anticipates program revenues and expenses over the next six years and plans for
projects within that timeframe and the available budget. The 2025-2030 SIP includes 22 projects
totaling $13.4M. For reference, the SIP is similar in nature to the City’s 6-Year Transportation
Improvement Program, summarizing near-term transportation projects.
OPTIONS: Discussion.
RECOMMENDED ACTION OR MOTION: None, discussion only.
BUDGET/FINANCIAL IMPACTS: Projects identified in the SIP are funded by utility revenues
(Fund 402). The utility will collect $6.2 million in 2025. Further, over the course of years 2025
through 2030, the SIP assumes a total project expenditure of $13.4 million, equal to average
annual project expenditure of $2.2 million per year. The remainder of utility revenues is applied
towards the annual operating budget, maintaining a minimum balance equal to 50% of the
annual operating costs, and maintaining an emergency balance of $300,000.
Project costs included in the SIP do not account for other fund sources, such as grants. If
awarded grant funds, the cost to the city can be reduced accordingly.
STAFF CONTACT: Adam Jackson, P.E. – Utility Engineering Manager
___________________________________________________________________________
ATTACHMENTS: PowerPoint
2025-2030 Stormwater Improvement Program
Final Engineering - $100,000
Construction - $2,000,000
Preliminary Engineering - $250,000
Construction - $1,000,000
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: September 3, 2024 Department Director Approval:
Check all that apply: consent old business new business public hearing
information admin. report pending legislation executive session
AGENDA ITEM TITLE: Administrative Report: Potential Grant Opportunity – WSDOT Video
Analytics
GOVERNING LEGISLATION: RCW 35.77.010: Six Year Transportation Improvement Program
(TIP)
PREVIOUS COUNCIL ACTION TAKEN:
February 22, 2022 – City Council authorized the City Manager to apply to the 2024 City
Safety Program call for projects. Applications excluded any request for video analytics.
Annual adoption of the City’s Six-Year Transportation Improvement Plan (TIP)
BACKGROUND:
The city collects traffic data, such as vehicle volumes and turning movements at intersections to
address citizen safety complaints, planning purposes, and for project analysis and design. The
Traffic Engineering Division annually budgets $10,000 to count vehicle intersection turning
movements. Additionally, there is a budget allocation of $25,000 annually for safety analyses,
whether as a planned project or in response to safety concerns.
Historically, the traffic industry has used manual-counts and/or tube-counts to collect this
information. In recent years, the industry has transitioned to video recordings to collect the
information and computer programs to process the information.
In July 2024, the Washington State Department of Transportation (WSDOT) issued a call for
projects that is open and ongoing. The call is for the Video Analytics Program and has $1 Million
dollars statewide. Funds will be awarded on a first-come, first-served basis.
The intent of this funding is to implement network-wide traffic conflict screening programs using
video analytics at controlled intersections, such as signalized intersections, with
disproportionate numbers of traffic violations and injuries to active transportation users to
reduce fatalities.
If successful, the City will use this funding for video monitoring to gather information such as
traffic volumes, vehicle turning movements, pedestrian and bicycle movements, and potential
near misses or otherwise unsafe conditions. This information will then be used to help establish
countermeasures to these unsafe situations using computer modeling.
Utilizing the City’s Local Road Safety Plan (Plan) that addresses fatal and serious injury crashes
and systemic safety needs, and by analyzing the crash data and conditions present, the City
has identified and prioritized intersections and trail crossings that are likely to see a benefit from
the Video Analytics Program. Spokane Valley’s most prominent crash types are Angle (T) and
Hit Pedestrian crashes; most typically occurring on arterial streets or state highways and many
occurring at signalized intersections. The attached table provides a list of the proposed video
monitoring locations that includes 36 signalized or stop-controlled intersections and 12
trail/roadway crossing locations. The intersection locations are also desired by the Traffic
Engineering Division for data collection purposes.
The total funding request is estimated at $102,000. The cost includes data collection and
processing by a vendor and post-processing review and classification by a consultant or in-
house staff.
If downloaded, video recordings are subject to records retention rules. Generally, this means
that most scenarios will require files be stored for either 30 days for recordings without incidents
or 6 years for recordings with incidents. Based on coordination with the clerk’s office, city
attorney’s office and the information technology (IT) office, the city can comply with these
retention requirements.
For privacy concerns related to video surveillance, the proposed near-miss videos are low
resolution and do not clearly identify individuals’ faces or vehicle license plates. You’ll see in the
PowerPoint examples that the level of detail provided identifies the general vehicle color and
type (i.e. sedan, pick-up truck, bus, etc.) and the mode of transportation (i.e. automotive,
pedestrian, bicycle, etc.). The recordings are at isolated locations and are not collected as video
surveillance.
OPTIONS: Discussion.
RECOMMENDED ACTION OR MOTION: Staff requests Council consensus to proceed with
the proposed funding opportunity and return to council at a later date for a motion consideration
to apply for funding.
BUDGET/FINANCIAL IMPACTS: None at this time. There is no match requirement for this
funding opportunity.
STAFF CONTACT: Adam Jackson, P.E., Engineering Manager
______________________________________________________________________
ATTACHMENTS: PowerPoint
Monitoring Locations
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: Sept. 3, 2024 Department Director Approval:
Check all that apply: consent old business new business public hearing
information admin. report pending legislation executive session
AGENDA ITEM TITLE: City of Spokane Valley Short-Term Rentals
GOVERNING LEGISLATION: RCW 35.101.010, SVMC 3.20.010
PREVIOUS COUNCIL ACTION TAKEN: None
BACKGROUND: At the request of a local hotelier and representative from the Washington
Hospitality Association, City staff met briefly with representatives from Granicus in late spring
2024 regarding the company’s ability to identify and monitor advertised short-term rentals in the
City that may be subject to either existing or potential rental housing regulation.
Staff prepared a brief that summarizes the information provided by Granicus, including the current
number and type of short-term rentals in Spokane Valley; current City regulation and fee revenue;
and factors that may influence a municipality’s decision to develop stricter regulation of rental
housing through adopted ordinances and code. That brief was included as an information-only
item in the July 23 Council meeting packet.
Staff will give a short presentation on Sept. 3 that summarizes the information and answer any
questions based on research of this issue to date.
OPTIONS: Information only
RECOMMENDED ACTION OR MOTION: Information only
BUDGET/FINANCIAL IMPACTS: Further staff analysis and research would be required to
identify costs or revenue projections associated with the implementation of short-term rental
regulation.
STAFF CONTACT: Lesli Brassfield, Tourism and Marketing Manager
Chelsie Taylor, Finance Director
ATTACHMENTS:
PowerPoint Presentation
Summary Brief: City of Spokane Valley Short-term Rentals
AGENDA
•••••
term workers;
-
term rentals
-
term rentals on the SAME
-
term rental market grew faster than the
-
short
launched in the mid 1990s. Short
the
unique features/services no longer divide the hotel and
–
rentals provide more options for vacationers and short
-
term rental markets
-
Home share/rental platforms presented a new alternative to hotelsBenefits allow homeowners to generate additional income; expand the lodging base; and support the local economyDuring
and in post COVID hotel market Over 100 websites allow owner/operators to list vacation rentalsBlending of markets shortCustomers can rent both hotel rooms and shortplatforms (example:
booking.com)
••••••
term rentals?
-
Why regulate short
Summary Brief: City of Spokane Valley Short-term Rentals
There are approximately 167 unique short-term rentals (also referred to as vacation rentals) located
in the City of Spokane Valley that are advertised on various home share platforms, according to
Granicus, a company that provides short-term rental monitoring services to cities and counties.
Most rentals are listed on multiple home share platforms that allow users to secure a rental and
transact fees. A short-term rental lodging venue that is rented for less than
one month (30 days) at a time. These rentals primarily serve leisure and extended-stay visitors, but
also house workers in healthcare, sales and other industries.
The number of short-term rentals in the City can change daily, depending on when operators make
rentals available for reservation and use. For example, an owner may live part time in their
residence, but utilize the home as a vacation rental when they are absent.
According to Granicus, there are nearly 100 home share platforms that list rentals; however, most
are promoted on about 25 key sites. The most popular platforms are VRBO, Airbnb, Expedia,
Booking.com, Trip Advisor and Vacasa.
The median nightly rental rate, according to Granicus, for short-term rentals in Spokane Valley is
$120. Regarding listing type, 71% of rentals are single family homes; 28% are multifamily homes;
and 1% is undetermined. Regarding unit type, 91% of rentals include the entire home and 9%
include only part of the home.
Current City Regulations and Fee Revenue
Per SVMC 5.05.010, the City requires any individual (or representative) owning, renting, leasing,
using or maintaining a place of business or establishment within the City to obtain a business
license registration. The City’s for- annual license fee is $25.
A review of licensure records indicates that a handful of owners/operators (less than 10) of short-
term (vacation) rentals in the City have obtained licensure, however,
that the license is for a short-licensed venues.
Some home share platforms recommend or require business licensure, which may prompt some
owners/operators to obtain a license. C or require unlicensed
short-term rentals to obtain a license.
The City does not (by ordinance) require a permit for occupancy or inspection, or for any other
action, to operate a short-term rental. In addition, the City does not have language in its zoning
code that regulates the operation of short- or long-term rentals.
1
Short-term rental owners are required by Washington State law RCW 35.101.010 and SVMC
3.20.010 to collect and pay lodging taxes. The State Department of Revenue collects the taxes and
then distributes the revenue to cities and counties. In Spokane Valley, applicable taxes on short-
term rentals are:
A State Sales and Use Tax of 4.5%
A Local City/County Sales and Use Tax of 2.2%
A Hotel/Motel Tax of 2%
A Special Hotel/Motel Tax of 1.3%
A Public Facility District Tax of 2%
The City operates a Tourism Promotion Area (TPA), which assesses a $4 per room, per night fee
on lodging businesses (hotels and motels) with 40 or more rooms. Due to the room requirement,
short-term rentals generally do not qualify for TPA fee assessment. The City does not impose a
local Business and Occupation tax.
The City does not have data on the tax revenue generated by short-term rentals operating in the
City. The Department of Revenue, which collects and distributes tax revenue, provides the City the
by platform (i.e. Airbnb, VRBO), but not by unit type or unit location. As a
result, it is not currently possible to determine if short-term rentals are reporting revenue as
required.
Why Regulate and Monitor Short-term/Vacation Rentals?
regarding short-term rentals, however the City does periodically receive complaints about rental
housing issues, including both short-term and long-term housing.
Some cities and counties are enacting short-term rental regulations and monitoring rentals in
response to several issues:
Regulating or limiting the number of short-term rentals may improve long-term rental
The popularity of purchasing (when interest rates were
low) or operating short-term rentals as an investment in recent years has reduced the
availability of long-term rentals in some locations, often resulting in a tighter long-term
rental market and increased rental rates.
Vacation rentals may be associated with noise, party/large group events, parking issues and
trash problems; monitoring rentals may improve responsiveness to neighborhood
complaints regarding these issues.
Without regulations, it is impossible to determine if short-term rentals comply with any
required building code requirements for safety, signage, parking and sanitation.
Regulations may allow residents an opportunity to have input into the establishment or
approval of short-term rentals in various neighborhoods or other locations.
Regulations may help improve permit and tax compliance, and potentially increase
revenue.
Regulations may make citizens aware that short-term rental compliance is taken seriously
within the jurisdiction.
2
Regulations may satisfy hotel owners and operators who are concerned that these rentals,
motels.
Many jurisdictions in Washington State have enacted ordinances to regulate short-term rentals,
with some also regulating long-term rentals, according to MRSC. Some are listed below. As of May
2024, Granicus is contracting with 12 jurisdictions to monitor short-term rentals (these are noted
with an asterisk).
Bellingham*
Bingen*
Chelan County
Coupeville
Gig Harbor*
Grays Harbor County*
Kirkland
Langley*
Leavenworth*
Lewis County*
Port Townsend
Poulsbo
Renton
San Juan County
Seattle*
Spokane*
Tacoma
Vancouver*
Walla Walla
Westport
White Salmon*
In Washington State, Oregon, California and British Columbia, Granicus is working with 134
jurisdictions as of May 2024.
Time and Costs to Regulate Rentals
Levels of regulation regarding short-
business license and then monitor advertised rentals to ensure they are licensed. Others are opting
for a broader approach – regulating both short- and long-term rentals through established
ordinances/municipal codes.
As an example, the City of Spokane updated short- and long-term rental licensing and permit
ordinances in 2023. A short-term rental (less than 30 days) requires a city business license ($127)
and permit annually. Depending on the rental’s location, the annual permit fee is $200 to $300 for
initial application and $100 to $150 for renewal, plus proof of insurance and other documents. The
3
City of Spokane has several hundred short-term rentals and uses Granicus to monitor licensing
(read more about Granicus services below). For long-term rentals, Spokane requires that they be
registered in its permit system and obtain an annual business license ($127). A $15 per rental unit
fee is required as part of the rental registry application. Spokane also requires an initial inspection
of long-additional fee). However, if subsequent
may be assessed by the city. According to the city, the intent of the long-term rental ordinance is to
create a rental registry, and to reiterate existing standards and enforcement mechanisms for rental
housing.
Depending on the level of regulation conceptualized, cities generally need to plan for these impacts
if considering regulation:
o What
o What levels or type of rental housing regulation would be most helpful – short-term,
long-term or both
o
o
o to implement regulation
o What additional tools, such as equipment or monitoring services, would be
o What are the actual costs of implementing regulation based on information
o What fees would be associated with regulation, and how could generated fees
costs to implementing regulation
o
Discussion and decision making regarding rental regulations
o S time to prepare and present information and options to the community and
City Council
o Council time to review information, impacts, costs and various options
o Council time to discuss and provide direction
Development of actual ordinance(s)/municipal code to regulate rental housing
o text, if recommended
o and Council time to discuss, review and act on rental housing code text
o Implementation of code (if approved), which would likely ,
equipment needs, monitoring services, code enforcement, and other potential
services.
Granicus Services and Fees – an example of one Vendor that monitors short-term rentals
Granicus can identify short-term rentals that have not obtained a jurisdiction’s required license or
permit approval, and then (including generation of letters and other documents)
to help both the rental operator and jurisdiction attain compliance.
4
Granicus also monitors each rental, developing based on the rental’s location, fees,
amenities and projected occupancy. Additional services include a dashboard that provides data
reports and a 24/7 hotline that allows neighbors or other individuals to report non-emergency
incidents in real time.
Granicus provided a verbal quote of $6,900 annually for its basic service (
and limited monitoring) for the City of Spokane Valley. Comparatively, it would cost about $16,000
annually to utilize the full suite of Granicus’ short-term rental tools. Fees are based on the number
of rentals in a jurisdiction. Spokane Valley falls in a pricing tier with 50 to 200 rental units.
- there are other vendors that provide similar monitoring services, such as Avalara, Azavar and
Deckard Technologies.
Impact of Short-term Rentals on the Hotel/Motel Industry
Since the launch of VRBO in 1995 – rst short-term rental platform – the short-term rental
market has experienced unprecedented growth.
For several years, the market operated separately from the traditional hotel/motel market. Both
provided rental options with unique features that appealed to customers, depending on the size of
their traveling party, length of stay, location and budget. But in recent years, and because
of COVID-19, the short-term rental market has grown at a faster pace than the hotel industry.
Concurrently, hoteliers have voiced concerns that short-term rentals are not required to meet
industry standards for quality control, or comply with city and county licensing and permitting
requirements. Hoteliers argue that applying regulations traditionally assessed on hotels/motels can
-term rental market.
To attract more customers, hotels have reacted by looking more closely at customer behaviors, and
offering amenities that customers enjoy at short-term rentals, such as small kitchens and outdoor
equipment. In return, short-term rentals have begun to look more like hotels – offering concierge
services, for example. The takeaway – traditional lines that separated these markets have blurred.
Currently, some platforms that historically advertise hotel rooms, such as Booking.com, have
incorporated short-term rentals into their listings as options for customers. Likewise, some
independent hotels have begun listing individual rooms on home share platforms. In 2022,
Booking.com became one of the most preferred options among travelers for securing overnight
lodging (source: doorloop.com). By providing both short-term rentals and hotel options, customers
can directly compare amenities, location, fees, and make the best choice for their traveling party.
Most recently, economic impacts such as higher wages and rising maintenance costs, as well as
increasing home share platform fees, have resulted in higher short-term rental costs for
consumers. Some states have also enacted laws requiring short-term rental platforms to increase
transparency and show all fees up front, ensuring customers have “equal information” when
considering all lodging types. Some analysts say these changes may help to create a more level
between short-term rentals and hotels.
5
With hotels and short-term rentals competing for a larger share of the same consumer market, it is
likely that how jurisdictions regulate short-term
rentals within their communities.
######
Prepared by:
Tourism and Marketing Manager
Economic Development Department, City of Spokane Valley
6
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: Sept. 3, 2024 Department Director Approval:
Check all that apply: consent old business new business public hearing
information admin. report pending legislation executive session
AGENDA ITEM TITLE: Tourism and Promotion Area (TPA) 2025 Budget and Work Plan
GOVERNING LEGISLATION: Chapter 3.21 SVMC, RCW 35.101
PREVIOUS COUNCIL ACTION TAKEN:
On May 2, 2023, City Council approved a motion to authorize the City Manager or
designee to execute a contract for $44,045 in TPA revenue with 116 & West to develop a
five-year Destination Marketing Strategic Plan.
On June 20, 2023, City Council authorized the City Manager or designee to execute a
contract with Spokane Sports for $300,000 in TPA revenue to provide sports recruitment
and marketing services for 2023. The Spokane Sports contract can be renewed annually
through 2027.
On Aug. 15, 2023, City Council received the 2023 TPA Summary & Report outlining
activities and related work completed by the Economic Development Department Staff
and the city’s TPA Hotel Commission (Hotel Commission) between Jan. 1, 2023, and
August 15, 2023, as an informational item.
On Sept. 19, 2023, City Council approved the new five-year plan (serving as the 2024
work plan) and authorized the City Manager or designee to execute a contract with 116 &
West for $813,500 in TPA revenue to provide destination marketing services for 16 months
through December 31, 2024. This contract with 116 & West can be renewed annually
through 2027.
On Dec 12, 2023, City Council approved a motion to authorize the City Manager or
designee to execute a contract amendment with Spokane Sports for $400,000 in TPA
revenue to provide sports recruitment and marketing services in 2024.
On May 7, 2024, Council approved a contract amendment with 116 & West to spend an
additional $466,000 in TPA revenue for destination marketing services in 2024. The 116
& West contract can be renewed annually through 2027.
On Aug. 15, 2024, the Hotel Commission reviewed the TPA Summary & Report for July
2023-June 2024 that outlines activities and projects completed by the Economic
Development Department and contracted consultants. In addition, the Commission
reviewed the recommended 2025 budget of $1.275 million and Work Plan, which utilizes
the current contracted consultants to continue to provide marketing services. The
Commission recommended that the 2025 Budget and Work Plan move forward to City
Council for approval.
BACKGROUND:
Spokane Valley Municipal Code 3.21 requires that the Hotel Commission, a recommending body
for expenditures of TPA revenue, provide an annual written summary and report to City Council
prior to the adoption of the following year’s TPA Budget and Work Plan. The recommended
Budget and Work Plan must be approved by Council by Sept. 30 annually so that it can be
included in the city budget.
The recommended 2025 TPA budget of $1,275,000 is based on projected tourism travel and
historical revenue generation. In addition, city staff recommends that the 2025 Work Plan utilize
contacted services with 116 & West for destination marketing and Spokane Sports for sports
recruitment/programming. City staff will work with the consultants to develop 2025 scope and fee
proposals for services, and present these proposals to the Hotel Commission in September and
October. After Hotel Commission review and possible recommendation, city staff will bring these
proposals to Council in late October and early November for consideration. This will allow time
for staff to complete amendments before Dec. 31, 2024, to extend these contracts (incorporating
2025 scope and fees) through December 2025.
OPTIONS: Consensus for staff to bring forth a motion to approve the 2025 TPA Budget and Work
Plan, or take other action.
RECOMMENDED ACTION OR MOTION: Consensus for staff to bring forth a motion to approve
the 2025 TPA Budget and Work Plan.
BUDGET/FINANCIAL IMPACTS: Funding of $1,275,000 to support TPA programs will come
from TPA Fund 109. The city’s Finance Department is projecting TPA revenues of $1,300,000 in
the city’s 2025 Budget, but recommends limiting allocated expenditures to $1,275,000. A reserve
of $325,000 will be maintained for cash flow purposes. These amounts are consistent with the
draft 2025 Budget worksheets presented to Council on August 27, 2024.
STAFF CONTACT: Lesli Brassfield, Tourism and Marketing Manager
ATTACHMENTS:
TPA Summary & Report July 2023 – June 2024
TPA 2025 Budget and Work Plan