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2025, 01-07 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, January 7, 2025 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 “public comment opportunity.”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 CERIMONIAL OATH OF OFFICE FOR COUNCILMEMBERS SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: Fire Prevention Week EXECUTIVE SESSION: Pending Litigation \[RCW 42.30.110(1)(i)\]. (Proposed motion: I move Council adjourn into executive session for approximately 15 minutes to discuss pending litigation, and that action may be taken upon return to open session.) GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep This is not an opportunity for questions or comments to matters within the jurisdiction of the City Government. 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 unrelated to City business, then the Council and/or Mayor may end that person’s public comment time before 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. Council Agenda January 7, 2025 Page 1 of 2 ACTION ITEMS: 1. Motion Consideration: Volunteer Committee Appointments – Mayor Haley \[public comment opportunity\] 2. Motion Consideration: Board Appointments – Mayor Haley \[public comment opportunity\] 3. Motion Consideration: Lodging Tax Funding Allocation – Sarah Farr \[public comment opportunity\] 4. Motion Consideration: Determining positions for 10 authorized police officers – Erik Lamb \[public comment opportunity\] NON-ACTION ITEMS: 5. Admin Report: Economic Forecast Presentation –Mike Basinger, Grant Forsyth 6. Admin Report: Potential Grant Opportunity: Raise Grant - Adam Jackson 7. Admin Report: Potential Grant Opportunity – Clean Building Performance – Gloria Mantz INFORMATION ONLY: GENERAL PUBLIC COMMENT OPPORTUNITY: General public comment rules apply. COUNCIL COMMENTS CITY MANAGER COMMENTS EXECUTIVE SESSION: \[RCW 42.30.110(1)(g)\] Review Performance of a Public Employee Proposed Motion: I move that Council adjourn into executive session for approximately 60 minutes to review the performance of a public employee, and that no action will be taken upon return to open session. ADJOURNMENT Council Agenda January 7, 2025 Page 2 of 2 Proclamation City of Spokane Valley, Washington Fire PreventionWeek Whereas,every 23 seconds, a fire department in the United States responds to a fire somewhere in the nation; and Whereas, fires nationally were responsible for 3,670 civilian deaths and 79% of these fatalities in 2023 occurred in the home; and Whereas, fires nationally were responsible for 13,350 civilian injuries and 77% of these injuries in 2023 were also related to fires in the home; and Whereas, an estimated $23.2 billion in property damage nationally occurred as a result of fire in 2023;and Whereas, wildland/urban interface (WUI) related fires remain a concern nationwide with multibillion-dollar losses as a result in 2023.; and Whereas, he fire service responds to a growing number of medical calls for service, surpassing 80% of total call volume in some jurisdictions; and Whereas, Community Risk Reduction is a data-informed process to identify and prioritize local risks, followed by integrated and strategic investment of resources to reduce their occurrence and impact; and Whereas, the value of community support from local, state, and national partners to address community risks is recognized to meet the demands on paid, combination, and volunteer members of the fire service; and Whereas, the goal of Community Risk Reduction is to reduce the occurrence and impact of emergency events for both community members and emergency responders through deliberate response, and Economic incentive; and Whereas, most fire-related and many medical calls for service are preventable, with the performed as part of an integrated Community Risk Reduction program;and Whereas, Monday, January 20, 2025,is Martin Luther King Day and is nationally recognized as a National Day of Service and an opportunity for communities to reduce the risk in their community through a series of educational and other programs. THEREFORE BE IT RESOLVED That the week of January 20, 2025 January 26, 2025,be designated as CRRWeek a grassroots initiative of fire service professionals across the nation to raise awareness of the importance of CRR in the fire service community and an opportunity to make communities safer. th Dated this 7day of January2025. _______________________ Pam Haley, Mayor CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation AGENDA ITEM TITLE:Motion Consideration: Aging & Long Term Care of Eastern Washington representative, Spokane Housing Authority representative, Tourism Promotion Area (TPA) Commission, Planning Commission, and Lodging Tax Advisory Committee (LTAC) Mayoral Appointments GOVERNING LEGISLATION: Planning Commission: Spokane Valley Municipal Code 18.10; Tourism Promotion Area: Spokane Valley Municipal Code 3.21; Lodging Tax Advisory Committee (LTAC); RCW 67.28.1816; Aging & Long Term Care: Bylaws of Aging & Long Term Care; Spokane Housing Authority: Bylaws of Spokane Housing Authority. PREVIOUS COUNCIL ACTION TAKEN: Vacant volunteer positions are routinely appointed to various terms based on the bylaws or requirements of the vacancy. BACKGROUND: According to SVMC, RCW and Bylaws of each committee or board, members shall be nominated by the Mayor and confirmed by a majority vote of at least four members of the City Council. Members shall be selected without respect to political affiliations and shall serve without compensation. Terms shall be for selected periods based on the committee requirements and shall expire on the thirty-first day of December. Announcements of the vacancies were posted on the City’s webpage, the City issued press releases, and the notice was published in the Valley News Herald and The Exchange. The deadline to submit an application was 4:00 p.m. December 20, 2024. Thirteen applications were submitted for the various committees or boards. Copies of all applications were distributed to the mayor for review. OPTIONS: Confirm or not confirm, the Mayor’s nominations. If the Mayor’s nominations are not confirmed by Council, the Mayor may either make another nomination or the matter can be postponed. RECOMMENDED ACTION OR MOTION: “I move to confirm the Mayor’s nominations of Robert McKinley, Emily Meyer and Ann Winkler to the Planning Commission for a three year term, Kary Gibbs and Grant Guinn to LTAC for a two year term, Jean Kindem to the Aging & Long-Term Care of Eastern Washington Board for a three year term, Jenny McClenathen to the Spokane Housing Authority Board for a five year term, and Jessica Glasson to the TPA Commission for a two year term with all terms beginning January 1, 2025. BUDGET/FINANCIAL IMPACTS: n/a STAFF CONTACT: Marci Patterson, City Clerk, Mayor Haley ____________________________________________________________________________________ ATTACHMENTS: Planning Commission Applications, LTAC Applications, Spokane Housing Authority Applications, Aging & Long-Term Care of Eastern Washington Applications, and TPA Applications CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion Consideration: Confirmation of Mayoral Appointments of Councilmembers to Boards and Committees GOVERNING LEGISLATION: Various ordinances, resolutions, and state statutes. PREVIOUS COUNCIL ACTION TAKEN: Annually, the Mayor makes appointment recommendations to place Councilmembers on various regional and in-house boards and committees. recommendations s: 1. Aging & Long Term Care of Eastern Washington - Jessica Yaeger; Rod Higgins as alternate 2. Chamber of Commerce Board (Greater Spokane Valley) Laura Padden 3. Clean Air Agency, Spokane Regional Rod Higgins; Tim Hattenburg as alternate 4. Continuum of Care for the Homeless, Spokane County Gloria Mantz, Eric Robison as alternate 5. Finance Committee, Spokane Valley Laura Padden, Rod Higgins, Ben Wick 6. GMA (Growth Mgmt Steering Committee of Elected Officials) Rod Higgins, Tim Hattenburg 7. City Governance Manual Committee Pam Haley, Rod Higgins, Jessica Yaeger 8. GSI Pam Haley \[must be mayor\] 9. HCDAC (Housing and Community Development Advisory Committee) Tim Hattenburg, Ben Wick 10. Human Rights Task Force: Ben Wick, Jessica Yaeger as alternate 11. Lodging Tax Advisory Committee Rod Higgins 12. Mayors Association of Northeast Washington \[must be mayor\] Pam Haley 13. Opioid Abatement Council (OAC) Jessica Yaeger 14. Public Safety Committee Tim Hattenburg, Laura Padden, Ben Wick 15. SRTC (Spokane.Reg.Transportation Council) -Pam Haley, Rod Higgins; Tim Hattenburg as alternate 16. Strategic Planning Committee Pam Haley, Tim Hattenburg, Rod Higgins 17. STA (Spokane Transit Authority) Pam Haley, Tim Hattenburg 18. Wastewater Policy Advisory Board Rod Higgins, Jessica Yaeger OPTIONS: Move to confirm the Mayoral appointments of Councilmembers to the committees and boards as listed, or as modified by the Mayor. RECOMMENDED ACTION OR MOTION: I move to confirm the Mayoral appointments of Councilmembers to the committees and boards as listed on this January 7, 2025 Request for Council Action form. BUDGET/FINANCIAL IMPACTS: n/a STAFF/COUNCIL CONTACT: Marci Patterson, City Clerk, Mayor Haley DESCRIPTION of COMMITTEES: 1. Aging & Long Term Care of Eastern Washington Governing Board The purpose of this agency is to improve the quality of life of older people in need of long term services and support through the development and the fostering of the development of comprehensive & coordinated service systems in order to secure & maintain maximum independence and dignity in a home environment for older people; remove individual and social barriers to economic and personal independence for older people; to speak & work in behalf of older people; to seek the support of and join with other agencies and organizations when appropriate. Our representation: One Councilmember and one alternate if desired. Term length up to the jurisdiction making appointment. 2. Chamber of Commerce Board, Greater Spokane Valley The Chamber is a nonprofit 501(c)(6) organization; it serves businesses & organizations; they are committed to fostering relationships between members and the community to improve the economic climate and quality of life in Eastern Spokane County. Annual meeting held November and other meetings throughout the year. Term usually Sept 1 to Aug 31, but they are OK with us having an annual appointment. We are permitted 1, ex-officio non-voting member. 3. Clean Air Agency, Spokane Regional Some functions include coordinating activities with others in the community to carry out comprehensive (or run with council term). We have one representative plus one alternate if desired. 4. Continuum of Care for the Homeless, Spokane City/County In May of 2018, we were asked to participate. This is a regional planning body that coordinates housing and services funding for homeless families and individuals. Their mission is to prevent and ultimately end homelessness in our area by fostering shared responsibility among stakeholders. The Board representation consists of 21 members, with one representative from the City of Spokane Valley. The Board is guided by HUD and the United States Interagency Council on Homelessness national goals in ending homelessness. Board meetings are generally held on the last Wednesday from 3:30 to 5:00 at the Goodwill on Second Avenue. We have one representative for a one-year term. 5. Finance Committee, Spokane Valley adopting, modifying and monitoring the travel policies and procedures for reimbursement of expenses incurred while on official business of the COSV, is may also request meetings to discuss matters of financial interest with the Finance Committee. Finance Committee also has authority to approve certain change orders on short notice. Usually 3 councilmembers. 6. Growth Management Steering Committee of Elected Officials Operates under the GMA Joint Planning Interlocal Agreement; responsibility is to specify standards for defining urban growth areas, minimum levels of service for UGA, distribution of future growth, negotiating UGA designations, and making recommendations regarding UGAs to the Board of County Commissioners. rd Meets the 3 Wed of each month, 10 a.m. Spokane Transit Authority Board Room. One-year term subject to reappointment. No need for an official appointment of an alternate; a councilmember can go in place of one of the 2 appointed if one of them cannot attend the alt just needs to identify themselves as an alternate at the meeting. 7. Governance Manual, Spokane Valley Works toward reviewing, refining, clarifying, or changing Council policies and procedures, to bring forward to full Council for further discussion/consideration. 8. GSI (Greater Spokane, Inc.) business & community initiatives to build a robust regional economy. According to bylaws, delegate must be Mayor. 9. HCDAC (Housing & Community Dev. Advisory Committee) Authority: Spokane Co Housing & Comm Development Advisory Committee By-Laws. Purpose: provide citizen representatives of Spokane County the opportunity to participate in, comment on, and review all nd funding proposals for the HCDAC Division. Regular meetings 2 Thurs of the month, 4-5 p.m. Community Service Bldg. Term Period: 3 years. Appointment Process: after our usual appointment process, Mayor writes to BoCC requesting confirmation of appointment. 10. Human Rights Task Force nd Usually meets the 2 Tuesday of the month, from 3:30 to 5 pm at Catholic Charities, downtown Spokane. Members must be willing to sign their Creed Statement acknowledging support of the mission and purpose of the Task force. \[Their Creed Statement is founded upon the principles of The Declaration of Independence, The United States Constitution, The Constitution of Washington State and The Universal Declaration of Human Rights.\] Alternates are permitted but may not vote. 11. Lodging Tax Advisory Committee, Spokane Valley Committee consists of 5 members: Two members who represent businesses required to collect tax, two members involved in funded activities, and one councilmember to act as chair. Committee usually meets once or twice a year, generally in the fall. 12. Mayors Association of NE Washington representative is Mayor 13. Opioid Abatement Council Participating Local Governments must establish a regional Opioid Abatement Council (OAC) to oversee monitoring, reporting, and dispute resolution. Spokane County has taken the lead in establishing the OAC. Spokane County has presented an agreement for all Participating Local Governments in the Spokane Region, which includes Adams, Ferry, Lincoln, Pend Oreille, Spokane, and Stevens Counties, along with the City of Spokane Valley, Cheney, Liberty Lake, and City of Spokane. The OAC created by the MOU meets the minimum requirements established by the One Washington MOU. The OAC will consist of one representative from each county and one representative from each city. 14. Public Safety Committee Public Safety Committee: An ad hoc committee consisting of two-to-three City Councilmembers. This committee meets on an as-needed basis to discuss and provide input into critical pending public safety issues. d the extensive number of issues facing the Citrelated to public safety, this committee will allow discussion on issues in a more timely manner and in advance of full City Council discussions. Meetings will be called by the City Manager or Deputy City Manager. The City Manager and Deputy City Manager will attend Public Safety Committee meetings. This committee will sunset as determined by recommendation from the Mayor, with approval by the City Council. 15. SRTC (Spokane Regional Transportation Council) The SRTC is the lead agency for transportation planning services for the area covered by Spokane County. The agency has several roles: at the federal level, SRTC is designated a Metropolitan Planning Organization (MPO), while it is designated a Regional Transportation Planning Organization (RTPO) by state law. MPOs nd and RTPOs serve the same basic planning functions. They meets monthly, 2 Thursday at 1 pm, downtown Spokane. Per interlocal agreement, term is 3 years or the tenure of the elected office, whichever is the lesser time, subject to reappointment. We are permitted one position, and an alternate is also permissible. 16. Strategic Planning Committee An ad hoc committee consisting of two-to-three City Councilmembers. This committee meets on an as- needed basis to discuss and provide input into the preparation of the winter workshop strategic planning agenda and other efforts throughout the year. 2024 will present the City Council with an extensive number of issues to prioritize related to City services. This committee will allow discussion on issues in a more timely manner and in advance of full City Council discussions. Meetings will be called by the City Manager or Deputy City Manager. The City Manager and Deputy City Manager will attend Public Safety Committee meetings. This committee will sunset as determined by recommendation from the Mayor, with approval by the City Council. 17. STA (Spokane Transit Authority) STA is overseen by a regional board that provides the policy and legislative direction for Spokane Transit and its administrators, and approves its actions, budgets and long-term plans. It also has the authority to levy taxes as authorized by state law with voter approval. The Board is composed of 9 voting elected officials: rd one year term subject to reappointment. The board meets 3 Thursday of the month from 1:30 to 3:30 in the STA Boardroom on Boone Avenue. We are allowed two delegates plus one alternate. 18. Wastewater Policy Advisory Board The City and County recognize the regional nature of the challenges related to wastewater management, and the necessity of a regional solution. The entities declare their combined support of the planning, financing, construction, managing and operation of the System, as defined within the Interlocal agreement. We are allotted 2 Spokane Valley Elected Representatives who shall have a 4 year term or until any such elected official ceases to be an elected official. This Board generally only meets once or twice a year. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE: Motion Consideration: Lodging Tax Grant Allocations GOVERNING LEGISLATION: State Law RCW 82.08 and 67.28; Spokane Valley Municipal Code 3.20 PREVIOUS COUNCIL ACTION TAKEN: In 2024 for the 2025 awards, the Council has had discussions pertaining to lodging tax as follows: July 30 and August 13, 2024 where we discussed: o Lodging tax in general – what it is and how it may be expended. o The LTAC – what it is and its role in the process. o The Council’s role in the process. o Potential modifications to the goals and priorities and allocation process that should be included in the lodging tax grant application and communicated to the LTAC. August 20, 2024, Council reached consensus on the 2025 goals and priorities and allocation process. November 19, 2024 Administrative report on the LTAC recommended lodging tax grant allocations. BACKGROUND: Pursuant to SVMC 3.20.010, the City has imposed and levied a total tax of 3.3% on the furnishing of lodging that occurs with Spokane Valley. The total tax is made of two portions, a 2% portion and a 1.3% portion, and each portion may be used for different purposes. The organizations to which the tax proceeds are distributed are ultimately determined by the City Council which receives a recommendation from the Lodging Tax Advisory Committee (LTAC). The LTAC is comprised of five members who are appointed by the City Council. The LTAC membership must include: At least two representatives of businesses that are required to collect the tax, At least two people who are involved in activities that are authorized to be funded by the tax, and One elected city official who serves as chairperson of the LTAC. The LTAC makes its recommendations in an open meeting after reviewing a combination of written application materials and hearing an oral presentation by each applicant. These presentations allow the LTAC the opportunity to ask questions and clarify information regarding the project or proposal. On November 4, 2024, the LTAC met to consider proposals and hear presentations from applicants seeking a portion of the $893,000 appropriated in the City’s 2025 budget for the 2% portion of lodging taxes in Fund #105, and for funding available specifically for capital expenditures from the 1.3% portion of taxes in Fund #104. 1 There were 19 applicationsreceived for a total of $733,488 in 2025 funding requests from the 2% portion of the tax. Individual funding requests and specific proposal information may be found in the chart below and in the application materials included in the attachments to the council packet. Two applications were received for the 1.3% tax funding source: one from City of Spokane Valley in partnership with Spokane Sports for a capital project to develop a Cross Country/Cyclocross Course at Flora Park, and one from Spokane County Parks Rec and Golf Department for Phase 1 Renovation to Plantes Ferry Sports Complex. These two requests totaled $4,000,000. th All applicants were required to present to the LTAC at the open public meeting on November 4 , 2024. Each applicant was provided up to 10 minutes after which the LTAC was given the opportunity to ask questions regarding the proposal, project, and request. All 21 applicants presented to the committee at the LTAC meeting. Immediately following applicant presentations, the LTAC independently ranked the proposals in each category in order of priority on a worksheet provided by staff. Staff then compiled those rankings into a table which sorted the top-ranked proposals in each of the two funding categories. The LTAC recommendations were made in two motions. The first motion was regarding the requests for capital funding from the 1.3% lodging tax in Fund #104. The LTAC began by individually ranking these two projects in order of priority, and the Cross Country/Cyclocross Course at Flora Park was unanimously ranked as number one. There was discussion about reducing the recommended transfer from Fund #105, which would increase the amount available for the 2% tax allocations. The motion unanimously passed to recommend allocating $2,500,000 to the City of Spokane Valley in partnership with Spokane Sports for the Cross Course project. The ranking spreadsheets were then returned to committee members, who individually ranked the applicants in the 2% tax portion category from one to 19, in order of priority. The rankings were shown on the screen and tallied according to top ranking until funds were exhausted. The committee discussed potential modifications to funding amounts and the rationale behind making an adjustment. Staff demonstrated how any change in any allocation dollar amount would result in an adjustment to the distribution list and add funding to the ranked total. Committee members were then able to deliberate and suggest adjustments. The LTAC discussed the merits of making particular awards to various applicants and also compared funding requests to some applicant’s awards received in the 2024 funding year. The LTAC also considered how revenues should be allocated according to Council’s goals and priorities. Ultimately, the committee agreed on a distribution and reached consensus. The recommended grant funding allocations from the 2% tax total $393,000. The second motion included the awards from the 2% lodging tax from Fund #105 as noted on the chart below and passed unanimously. As part of the second motion, the LTAC also recommended transferring $500,000 from Fund #105 to Fund #104. This was $54,000 less than initially anticipated, but the committee agreed that this transfer amount would fully fund the Cross Course project and leave $54,000 more to be allocated from the 2% tax portion in 2025. The LTAC recommended the following allocations for Lodging Tax Grant awards be advanced to the City Council for consideration: 2 CITY OF SPOKANE VALLEY, WA 2025 Lodging Tax Advisory Committee Recommendations Application Ranking LTAC Requests for Lodging Tax Funds - 2% Tax Portion (Fund 105)Requested Recommendation Spokane Valley HUB - Events and Tourism 153,000 147,000 21st USA West Square Dance Convention - Square Dance Convention 30,000 30,000 Spokane Regional Sports Commission - Sports Request 50,000 35,000 JAKT Foundation - Crave! Event 2025 65,000 50,000 Washington State Quilters - Quilt Show Expansion 35,000 25,000 Spokane Valley Summer Theatre - Marketing 35,000 35,000 Spokane Valley Heritage Museum - Marketing Campaign 27,268 27,268 CNC Productions, LLC - Inland Northwest RV Show & Sale 11,000 11,000 Spokane Corvette Club - Glass on Grass 15,000 15,000 Cody Productions, Inc - Spokane Motorcycle Show & Sale 11,000 11,000 Spokane Co Fair & Expo Cnt - Interstate Fair Marketing and Safety 80,000 6,732 Northwest Tandem Rally/Valleyfest - NW Tandem Rally 8,000 - Northwest Winterfest - NW Winterfest 45,000 - Victory Media - 2025 Shop. Eat. Stay. 75,000 - Top Drawer Media - 2025 Manufacturing Suppliers Expo 9,750 - JAKT Foundation - Spokane Valley Farmers Market 32,000 - Family Guide - Diwali Celebration of Lights 14,000 - Spokane Pride - Spokane Valley Pride 8,000 - Asian American Pacific Islander Coalition - Cultural Festival 29,470 - Total 733,488 393,000 Fund # 105Amount in 2025 Budget 893,000 Less Transfer to Fund 104 (500,000) 2% Tax Amt Avail to Award 2025 393,000 Remaining - LTAC Requests for Lodging Tax Funds - 1.3% Tax Portion (Fund 104)Requested Recommendation City of Spokane Valley - Spokane Valley Cross Course2,500,000 2,500,000 Spokane County - Plante's Ferry Sports Complex Phase 1 Renovation1,500,000 - Total 4,000,000 2,500,000 Fund # 104Amount in 2025 Budget 2,000,000 Transfer from Fund 105 500,000 1.3% Tax Amt Avail to Award 2025 2,500,000 Remaining - OPTIONS: Theoptions for City Council action have been viewed as primarily being limited to either (1) approving some or all of the listed recipients and amounts recommended by the LTAC or (2) not approving any recipients and having the LTAC revise its recommendation for further City Council action. However, under RCW 67.28.1817, a municipality may propose “a change in the use of revenue received under \[RCW 67.28\],” but must submit the proposal to the LTAC for review and comment. Then, the LTAC must be given at least 45 days to review and provide comments prior to final action by the municipality. This allows the City Council to conduct its own review of the materials submitted, including the minutes and recommended amounts by the LTAC, to come up with its own proposed distribution of the revenue for any of the applicants, which may be the same or different from the LTAC recommendation. If it is different, the City must give the LTAC 45 days to review and provide comments on the proposed revised distribution before taking final action. 3 RECOMMENDED ACTION OR MOTION: Motion #1: I move to make the following allocation of Lodging Tax funds for calendar year 2025 from Fund #105 from the 2% tax: Spokane Valley HUB - Events and Tourism – up to $147,000 21st USA West Square Dance Convention - Square Dance Convention – up to $30,000 Spokane Regional Sports Commission - Sports Request – up to $35,000 JAKT Foundation - Crave! Event 2025 – up to $50,000. Washington State Quilters - Quilt Show Expansion – up to $25,000 Spokane Valley Summer Theatre – Marketing – up to $35,000 Spokane Valley Heritage Museum - Marketing Campaign – up to $27,268 CNC Productions, LLC - Inland Northwest RV Show & Sale – up to $11,000 Spokane Corvette Club - Glass on Grass – up to $15,000 Cody Productions, Inc - Spokane Motorcycle Show & Sale – $11,000 Spokane Co Fair & Expo Center - Interstate Fair Marketing and Safety - $6,732 And a transfer of the remainder of actual lodging tax collections in the amount of $500,000 to be moved into the 1.3% Lodging Tax Fund #104. Motion #2: I move to allocate $2,500,000 of Lodging Tax funds from Fund #104 from the 1.3% tax to the design, construction, and other associated costs of the City of Spokane Valley and Spokane Sports Cross Country Course Project as presented in its 2025 lodging tax application. BUDGET/FINANCIAL IMPACTS: The 2025 Budget includes total revenues of $1,590,000 in lodging taxes, including $920,000 from Fund #105 from the 2% tax and $790,000 in Fund #104 from the 1.3% tax. Total expenditures are budgeted at $923,000 in Fund #105, including $30,000 to offset advertising at CenterPlace and up to $893,000 to be allocated through this award process. The fund balance at the conclusion of 2025 is expected to be about $225,000 in Fund #105, which should be adequate to cover cash flow needs. There are currently no budgeted 2025 expenditures in Fund #104; however, if the Cross-Country course project is awarded, expenditures will be added in a future 2025 budget amendment. If $2,500,000 is awarded from Fund #104, there will be an estimated remaining fund balance of about $308,390 at the end of 2025. STAFF CONTACT: Sarah Farr, Accounting and Finance Program Manager ATTACHMENTS: Minutes of November 4, 2024, Lodging Tax Advisory Committee meeting. Lodging Tax Application and Award History for the years 2020 through 2024. 4 MINUTES LODGING TAX ADVISORY COMMITTEE MEETING SPECIAL MEETING November 4, 2024 8:00 a.m. Spokane Valley City Hall 10210 E Sprague Ave. _____________________________________________________________________________________ Attendance: Lodging Tax Advisory Committee Members: Staff: Chair: Deputy Mayor Rod Higgins Chelsie Walls, Finance Director Rustin Hall, Spokane Sports Kelly Konkright, City Attorney Grant Guinn, Tru by Hilton Tony Beattie, Sr. Deputy City Attorney Amanda Alcamo, Oxford Suites Sarah Farr, Accounting & Finance Program Manager Miguel Aguirre, IT Specialist Marci Patterson, City Clerk ------------------------------------------------------------------------------------------------------------------------------ Chair Councilmember Higgins called the meeting to order at 8:00 a.m. and welcomed everyone, after which there were self-introductions. City Attorney Konkright introduced himself, and explained that as appointed officials, members of this committee are subject to laws such as those dealing with open government; and he went through his Open Public Government PowerPoint training for Committee members, explaining the various portions of the Public Records Act, and the Open Public Meetings Act. Opening Comments: Accounting and Finance Program Manager Ms. Farr and Finance Director Walls gave an overview of the contents of the notebook, including the Lodging Tax committee process, City Council goals and Priorities for use of Lodging Tax Revenues and provided instruction on the presentations that were to follow. Public Comment Opportunity: Chair Higgins explained that this is an opportunity for public comment and that comments will be limited to three minutes each. Chair Higgins opened the floor for public comments. No public comments were offered. Chair Higgins called for a recess at approximately 8:52 a.m. The meeting reconvened at 9:00 a.m. Presentations were made in the following order: st 1. 21 USA West Square Dance Convention – Karen Reichardt The applicant seeks $30,000 to promote and market the National Square Dance Convention. 2. Asian American Native Hawaiian Pacific Islander AANHPI Coalition – Jacqueline Babol The applicant seeks $29,470 to market, promote and provide cultural festival event. 3. CNC Productions LLC – Mr. Chris Cody The applicant seeks $11,000 to market the annual RV show. 4. Cody Productions Inc – Mr. Chris Cody The applicant seeks $11,000 to market the Spokane Motorcycle Show and Sale. 5. Family Guide – Ms. Charity Doyl The applicants seek $14,000 to promote their Diwali & Vegetarian Festival, also known as the Festival of Lights. LTAC Minutes November 4, 2024 Page 1 of 3 6. JAKT-Crave –Mr. Adam Hegsted & Rachel Ludwick The applicants seek $65,000 to continue marketing and operations of their event. 7. JAKT – Farmer’s Market –Mr. Adam Hegsted & Rachel Ludwick The applicants seek $32,000 to continue marketing and operations of their event. 8. Northwest Tandem Rally/Valleyfest – Teresa Kafentzis The applicant seeks $8,000 to market tandem rally event. 9. Northwest Winterfest – Mr. Sam Song The applicants seek $45,000 for the 2025 event, which he explained will continue to be held indoors due to winter weather. 10. Spokane Corvette Club – Connie Stephens The Spokane Corvette Club seeks $15,000 to market and promote the Glass on Grass car show event. 11. Spokane County Fair and Expo Center – Ms. Erin Gurtel and Ms. Rachelle Buchanan The Spokane County Fair and Expo Center seeks $80,000 to continue to enhance the fair marketing program and bring in more guests and attractions. 12. Spokane Pride – Matthew Danielson The applicant seeks $8,000 to market and promote a Pride Parade and other Pride events in Spokane Valley. 13. Victory Media – Mr. Dayne Kuhlmann The applicant seeks $75,000 for their SHOP, EAT, STAY event, which would be a package event to potential tourists, and would include the local hotels and businesses in our area. Chair Higgins called for a recess at 10:35 a.m. The meeting reconvened at 10:45 a.m. 14. Spokane Valley Heritage Museum – Ms. Jayne Singleton & Mr. Tom McArthur The applicants seek $27,268 to assist in their tourism promotion and marketing efforts. 15. Spokane Valley HUB Sports Center – Mr. Phil Champlin The applicant seeks $153,000 to market their 2025 events and promote tourism to the area. 16. Spokane Valley Summer Theatre – Yvonne Johnson The applicant seeks $35,000 to market the 2025 SVST Season. 17. Top Drawer Media – Dean Cameron The applicant seeks $9,750 to promote and market the 2025 Manufacturing Suppliers Expo event. 18. Spokane Regional Sports Commission – Ashley Blake The applicant seeks $50,000 to provide photography and event signage and banners for the upcoming cross course in Spokane Valley. 19. Washington State Quilters –Paula Ferry and Cheryl Clossin The applicant seeks $35,000 to market and advertise the 2025 Quilt Show in October. Finance Director Walls offered clarification that the prior presentations were for the 2% tax and the following presentations was for the 1.3% tax. 20. City of Spokane Valley – Mr. Mike Basinger LTAC Minutes November 4, 2024 Page 2 of 3 The applicant seeks $2,500,000 in partnership with Spokane Sports for sports recruitment and marketing of the Cross Country/Cyclocross Course & Fieldhouse at Flora Park. 21. Spokane County Parks, Rec and Golf Department –Julia Culp The applicant seeks $1,500,000 to support the development of the Plante’s Ferry Sports Complex Phase 1 Renovation. The committee chose to review and rankthe two capital requests first and make a decision on that funding before moving on to ranking the other presentations spreadsheet. Concerning the 1.3% tax for capital projects, it was moved by Mr. Guinn, seconded and unanimously agreed to accept the recommendation of $2,500.000 for the City of Spokane Valley for the Cross Course for sports recruitment and marketing. Lodging Tax Advisory Committee members develop funding recommendations Ms. Farr provided instruction on the spreadsheet ranking and noted once the committee members have completed their individual recommendations, to please hand them to her and she will include all the totals on one spreadsheet. Ms. Farr said that once all figures are included on the spreadsheet, the average is the starting point in the discussion; that committee members are free to discuss this, that they can stay with the average, or negotiate different values for different events; and once completed, she will need a motion on the applicant distributions. Lodging Tax Advisory Committee member discussion and award recommendation Members gave their ranking recommendations to Ms. Farr and Ms. Walls who entered them on the spreadsheet. The committee members discussed the amounts based on the ranking. It was then moved by Mr. Guinn, seconded and unanimously agreed to accept the recommendation of $500,000 and transfer the balance to Fund 104 per the following spreadsheet. The amounts are as follows: Spokane Valley HUB: $147,000 Square Dance Convention: $30,000 Spokane Regional Sports Commission: $35,000 JAKT-Crave!: $50,000 WA State Quilters: $25,000 Spokane Valley Summer Theatre: $35,000 Spokane Valley Heritage Museum: $27,268 CNC Productions, LLC – RV Show: $11,000 Spokane Corvette Club – Glass on Grass: $15,000 Cody Productions, Inc – Motorcycle Show: $11,000 Spokane Co Fair & Expo Center: $6,732 It was moved by Mr. Guinn, seconded and unanimously agreed to adjourn. The meeting adjourned at 12:48p.m. Respectfully submitted, Marci Patterson, Spokane Valley City Clerk LTAC Minutes November 4, 2024 Page 3 of 3 000 4,8009,0009,1006,0008,4008,0003,750 60,00014,50014,75019,00017,00215,00055,45020,75045,00053,12569,00070,00010,78038,75050,00017,500 357,020147,550211,250307,250 Award 2,512,613 4,155,340 7/25/2024 Total 000 6,000 20,00020,00031,00026,14050,01015,00035,00015,00020,00040,00010,00077,50070,00040,00050,00050,00025,00020,000 357,100233,000109,000400,000245,000101,860375,000105,000228,000 2,774,610 Application 00000000 00000000 7,0008,2503,750 12,00048,75012,25036,25020,75055,25026,12525,00038,75017,500 147,000793,575 Award 1,252,200 2024 00000000000000000 10,00060,00020,00045,00075,000 10,00015,00037,50025,00050,00025,00020,000 101,860641,360 147,000 Application 0000000 00000000 4,8007,5006,5007,0009,0008,0004,100 17,00255,00035,00011,00033,00073,00024,00014,800 515,198824,900 Award 2023 000000000000000 6,000 5,000 10,00060,00026,00040,00055,00010,000 10,00016,00026,14050,01055,00025,00030,000 100,000524,150 Application 00000000000000 00000 6,5006,0003,500 55,00030,00017,00045,00064,00027,00020,00024,000 273,000571,000 Award 2022 0000000000000000000 5,000 55,00015,00015,00050,00025,00045,00075,000 40,00020,00030,000 775,000 400,000 Application 00000000000000 000000 Page 1 of 1 2,6007,2001,800 30,00015,00045,00015,20049,00049,00012,600 480,840708,240 Award 2021 000000000000000000000 5,000 15,00045,00020,00025,00020,00050,00050,00055,00018,000 303,000 Application 0000000000000000000 8,0008,4001,380 30,00055,02018,60048,00066,00045,00018,60050,000 450,000799,000 Award 2020 000000000000000000000 P:\\Finance\\Finance Programs - Grants\\Lodging Tax Grant\\2025\\Lodging Tax Award History 03-24 55,10038,00018,00020,00050,00075,00050,00025,00050,000 150,000531,100 Application CITY OF SPOKANE VALLEY, WA2% Portion Lodging Tax Application / Award HistoryFor the years 2020 through 2024 AGENCIESAll Wheels Swap MeetCenterPlace - marketingCNC ProductionsCody ProductionsFamily GuideFilipino-American Northwest AssociationHatch AdvertisingHistoric Flight FoundationHUB Sports CenterJAKT - Brews, Beats, & EatsJAKT - Craft Beer EventJAKT - Crave NWJAKT - Farmers MarketJAKT - Spokane Valley EventsJAKT - OktoberfestNorthAmerica Talk, IncNorthwest WinterfestSpeed and Custom Productions, LLCSpokane Conservation DistrictSpokane County Fair & Expo CenterSpokane County Parks, Recreation, & GolfSpokane SportsSpokane Valley Heritage MuseumSpokane Valley Summer TheatreValleyfestValleyfest - Cycle CelebrationVictory MediaVisit SpokaneWashinton State Quilters AssociationWinterGlow SpectacularTransfer out to Fund #104 Total CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion Consideration: Determining positions for 10 authorized police officers GOVERNING LEGISLATION: Interlocal Agreement with Spokane County and the Spokane County Sheriff’s Office for Law Enforcement Services (No. 17-104.06) (“Interlocal Agreement”). PREVIOUS COUNCIL ACTION TAKEN: Interlocal Agreement for Law Enforcement Services as provided by the Spokane County Sheriff’s Office (“Sheriff”) to the City of Spokane Valley, contract number 17-104, adopted by Council on July 25, 2017, amended multiple times and renewed on November 22, 2022; Administrative Report from Matrix on April 18, 2023. Staff presented the Police Calls for Service and Staffing Evaluation completed by Matrix on November 6, 2023. Staff presented an update on implementation of the Matrix recommendations on January 30, 2024. Spokane Valley Police Chief Ellis provided an administrative report on the Spokane County Sheriff’s Office new recruitment and retention plan on February 6, 2024. On February 13, 2024, City Council ranked public safety as its top priority for 2024. On February 27, 2024, City Council voted to approve hiring of ten new commissioned officers, one civilian analyst, and the shared lieutenant for the Office of Professional Standards. The 2025 Budget was adopted on November 19, 2025. BACKGROUND: The City has proactively managed law enforcement services since incorporation through ongoing contracted law enforcement services with the Spokane County Sheriff’s Office. Pursuant to the Interlocal Agreement renewed in 2022, the parties have agreed to 91 dedicated Spokane Valley officers and 37 commissioned officers that are shared between Spokane Valley and Spokane County. In 2023, the Sheriff’s Office added two additional shared positions – one for RIG 9 Investigative Unit tied to the Real Time Crime Center and one for an administrative undersheriff position (originally an undersheriff that went to a civilian position and returned to an undersheriff position). A third shared position for a lieutenant in the Office of Professional Standards was added in the late fall of 2023, which is one of the positions recommended by Matrix (discussed below). There are six patrol districts in Spokane Valley and Spokane Valley Police are required to provide a minimum of one patrol officer per district on duty at all times. Due to a variety of reasons, including significant increases in calls for service, the City hired Matrix Consulting Group Ltd. (“Matrix”) in 2022-2023 to complete a review and provide staffing recommendations. Relevant to the discussion tonight, Matrix made the following staffing recommendations: Recommended increases: • 25 additional dedicated commissioned officers • 3 shared dedicated commissioned officers • 2 civilian positions 1 | Page • Note: through this process, staff identified significant challenges obtaining consistent, timely data, and so recommend an additional civilian contract analyst. On February 27, 2024, City Council unanimously approved an initial phase of implementation to add ten additional dedicated new positions, account for the new shared lieutenant in the Office of Professional Standards hired in 2023, and authorized the contract analyst position. As part of the 2025 Budget Development process, Council changed the contract analyst position into a Public Safety Coordinator position. City Council also conducted significant public outreach regarding the Matrix Study recommendations. Notably, the public provided input that strongly supported hiring additional officers and demonstrated the strongest desire for minimizing response times, investigating property and drug crimes, and addressing reckless and dangerous driving. The ten dedicated officers have not yet been identified by position. Pursuant to the Interlocal Agreement, the City specifies the positions for any dedicated officers, which is recommended that City Council do tonight through a motion. Sheriff Nowels and Chief Ellis have developed a recommendation based upon their professional experience and in consideration of the input received through community outreach efforts. Chief Ellis, along with City staff, had several meetings with the Public Safety Committee to refine the recommended positions for the ten dedicated officers. The following positions are recommended for City Council approval. • Four Patrol Deputies • One Patrol Lieutenant • One Traffic Deputy • One Homeless Services Deputy • Two Spokane Valley Investigative Unit Detectives • One Spokane Valley Investigative Unit Sergeant Chief Ellis also recommended, and members of the Public Safety Committee agreed, to change one of the existing Patrol Sergeants to a Patrol Lieutenant. The existing sergeant position that would be changed currently oversees one of the power shifts, which only consists of four officers. However, the additional Lieutenant position will mean there will be four Patrol Lieutenants and will allow Lieutenant-level supervision for all patrol platoons. This provides higher-level supervision and management to ensure that Sheriff’s Office procedures and policies are being carried out appropriately, as well as more direct supervision on a regular basis for each platoon. Chief Ellis has noted that new hires and lateral hires all start as patrol deputies. Thus, there is a possibility that promotion or moves to fill these positions will create vacancies in patrol deputies. However, Chief Ellis has also agreed that they will not promote or move any existing deputy into one of the new positions without having someone ready to backfill the vacancy that such a move or promotion would create. This will minimize the extent and time that patrol deputy positions are vacant. Current dedicated staffing as of December 30, 2024, is provided on an attached sheet. It shows the positions that are filled, positions that are in training and the anticipated start dates, and vacant positions. As of December 30, 2024, the Spokane Valley Police Department has 15 new or lateral hires that are currently in training (meaning they are not currently working in the field) and seven vacant positions. The first of these positions is anticipated to complete training in February. The positions shown on this staffing report include the ten positions authorized by Council. Estimated recurring costs for all positions for Phase I are $2,465,136 (including the ten additional officers, switching patrol sergeant to patrol lieutenant, shared Office of Professional Standards Lieutenant, and Public Safety Coordinator). The 2025 budget has approximately $2.325 million 2 | Page for the same positions for the Phase I implementation. The difference of approximately $140,000 can be covered in fund balance and will be addressed as part of the first budget amendment in 2025. Note that vehicles have already been accounted for separately in the 2025 budget for these positions. The recommended positions will require improvements to the existing Spokane Valley Police Precinct. The City has engaged an outside consultant, MacKenzie, to develop the scope of the necessary improvements. The improvements are generally as follows: • Removal of existing holding cells and repurposing of certain office space in current traffic area to be used for Spokane Valley Investigative Unit. This will allow SVIU to have a dedicated space that will accommodate sergeants, detectives, deputy, administrative staff, and light-duty/SCOPE volunteers. • Modifying the current Patrol Sergeant’s area to house the Traffic Unit. • Modifying the current SVIU area to house Patrol. This includes constructing sufficient offices for the four Patrol Lieutenants and obtaining larger workstations for patrol Sergeants. Currently, the Patrol Sergeants have standing workstations that are three-feet wide and generally are not large enough for the needs of the sergeants. These improvements will allow the new positions for Phase I and also have been identified as beneficial in providing more efficient and effective workspaces for SVIU, Traffic, and Patrol. These improvements will also likely accommodate some of the additional positions recommended by Matrix for Traffic and SVIU at such time that Council determines to implement additional staffing. Critically, the improvements will also allow time for the City to complete and evaluate the space needs, and to identify, design, fund, and complete a new facility that will accommodate future growth. The design, funding, and construction phases of a new facility will likely take several years to complete. MacKenzie has not yet completed cost estimates for the improvements. However, City Council has previously set aside $1.5 million as part of the initial amounts for space planning for a new facility. Staff do not believe the improvements to the existing facility for the Phase I implementation will exceed this available amount and recommend shifting this funding towards the necessary precinct improvements. Staff will provide updates as cost estimates are finalized by MacKenzie. Tonight, City Council must vote on the positions for the Phase I implementation as required by the Interlocal Agreement. OPTIONS: Move to approve the following dedicated positions as part of the authorized ten additional positions and authorize staff to finalize and execute an amendment to the Law Enforcement Services Interlocal Agreement to such effect: • Four Patrol Deputies • One Patrol Lieutenant • One Traffic Deputy • One Homeless Services Deputy • Two Spokane Valley Investigative Unit Detectives • One Spokane Valley Investigative Unit Sergeant • Modify One Patrol Sergeant to a Patrol Lieutenant Or take such other action as deemed appropriate. 3 | Page RECOMMENDED ACTION OR MOTION: Move to approve the following dedicated positions as part of the authorized ten additional positions and authorize staff to finalize and execute an amendment to the Law Enforcement Services Interlocal Agreement to such effect: • Four Patrol Deputies • One Patrol Lieutenant • One Traffic Deputy • One Homeless Services Deputy • Two Spokane Valley Investigative Unit Detectives • One Spokane Valley Investigative Unit Sergeant • Modify One Patrol Sergeant to a Patrol Lieutenant BUDGET/FINANCIAL IMPACTS: Estimated recurring costs for all positions for Phase I are $2,465,136 (including the ten additional officers, switching patrol sergeant to patrol lieutenant, shared Office of Professional Standards Lieutenant, and Public Safety Coordinator). The 2025 budget has approximately $2.325 million for the same positions for the Phase I implementation. The difference of approximately $140,000 can be covered in fund balance. Cost estimates for necessary improvements to the Spokane Valley Police Precinct are currently being developed and will be shared once finalized. There is approximately $1.5 million available for space needs assessment that staff recommends to be used for improvements to the Precinct. STAFF CONTACT: Erik Lamb, Deputy City Manager; Dave Ellis, Spokane Valley Police Chief ATTACHMENTS: Spokane Valley Police Department Dedicated Unit Staffing Report 4 | Page 12/31/2024 ğƌƌĻǤ hŅŅźĭĻƩƭ 290SV39 Administration290SV53 K-9 Police Chief/Undersheriff1.00FilledDeputy3.00Filled Inspector1.00FilledFilled Sergeant1.00FilledFilled 290SV41 Patrol290SV49Traffic Lieutenant2.00FilledSergeant1.00Filled FilledDetective/Corp1.00Filled Sergeant10.00FilledDeputy5.00Filled FilledFilled FilledFilled FilledFilled FilledFilled Filled Filled290SV34 Community Services FilledDeputy - Crime Prevention1.00Filled FilledDeputy - Homeless Outreach1.00Filled FilledDeputy - Homeless Outreach1.00Filled 290SV40 Domestic Violence Detective/Corp1.00Filled Deputy56.00Filled290SVSR School Resource Officer FilledDeputy4.00Filled FilledFilled FilledFilled FilledFilled Filled Filled Filled Filled Filled290SV90 Property-Drugs FilledSergeant1.00Filled FilledDetective/Corp10.00Filled FilledFilled FilledFilled FilledFilled FilledFilled FilledFilled FilledFilled FilledFilled FilledFilled FilledFilled Filled Filled FilledDeputy1.00Filled Filled Filled Filled Filled FilledTotal101.00 Filled Filled Filled Filled Filled Release DateAprilFilledIn Traning MarchFilledIn Traning SeptemberFilled In Traning AprilFilled In Traning SeptemberFilled In Traning MarchFilled In Traning FebruaryFilled In TraningğƌƌĻǤ FebruaryFilledIn Traning ƓķĻƩƭŷĻƩźŅŅЊ͵ЉЉ MarchFilled In Training tƩĻĭźƓĭƷ /ƚƒƒğƓķĻƩЊ͵ЉЉ JuneFilled In Traning\[źĻǒƷĻƓğƓƷЋ͵ЉЉ JuneFilled In Traning{ĻƩŭĻğƓƷЊЍ͵ЉЉ OctoberFilledIn Traning 5ĻƷĻĭƷźǝĻΉ/ƚƩƦЊЋ͵ЉЉ MayFilledIn Traning 5ĻƦǒƷǤАЊ͵ЉЉ SeptemberFilledIn TraningƚƷğƌЊЉЊ͵ЉЉ MayFilled In Traning Vacant Vacant Vacant Vacant Vacant Vacant Vacant CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Economic Forecast GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: N/A BACKGROUND: Dr. Grant Forsyth is the chief economist at Avista Corp. and was previously an economics professor at Eastern Washington University. He is here tonight to provide an economic forecast for Council. OPTIONS: Information only RECOMMENDED ACTION OR MOTION: None BUDGET/FINANCIAL IMPACTS: None. However, information on the economy may inform future discussions relating to the development of the 2026 Budget. STAFF CONTACT: Mike Basinger, Economic Development and Planning Director ATTACHMENTS: PowerPoint Presentation Annual Consumer Inflation Rate Annual GDP Growth Annualized Rate Annual Growth Units Permitted 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 1Q 2021 Year, Same Quarter-over-Year CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 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 - RAISE FY25 GOVERNING LEGISLATION: RCW 35.77.010: Six-Year Transportation Improvement Program PREVIOUS COUNCIL ACTION TAKEN: March 26, 2024, City Council authorized the City Manager to apply to the Freight Mobility Strategic Investment Board (FMSIB) call for projects. February 06, 2024, City Council authorized the City Manager to apply to the Bridge Investment Program. January 23, 2024, City Council authorized the City Manager to apply to the RAISE 2024. September 26, 2023, City Council approved staff to contract with KPFF Consulting Engineers for the project’s design phase. January 31, 2023, Council authorized the City Manager to apply to the RAISE 2023. December 20, 2022, City Council passed a motion to advance Alternative 2 – Diamond Interchange w/ peanut Roundabouts to final design. In 2021, the City partnered with Spokane County to submit a joint application to the United States Department of Transportation. The application was not awarded funding. Since 2019, the City has identified the Sullivan & Trent Interchange project as a City priority project and included it on its federal agenda and the Six-Year Transportation Improvement Program (TIP). BACKGROUND: The US Department of Transportation (USDOT) issued a call for projects in November 2024 for the RAISE (Rebuilding American Infrastructure with Sustainability and Equity) discretionary grant program. The RAISE program has previously used the acronyms BUILD and TIGER. Projects are scored based on their merits with respect to the following criteria: safety, environmental sustainability, quality of life, improves mobility and community connectivity, economic competitiveness and opportunity, state of good repair, partnership and collaboration, and innovation. Projects are also scored on project readiness and cost effectiveness. Critical program details are: Total Available Program Funds: $1.5 billion nationwide Award Range (Min-Max): $5 - $25 million (urban) Up to $25 million $225 million max to any single state 50/50 split between rural/urban areas Match Amount: 80% Federal max. (urban), N/A (rural) 20% Non-federal min. (urban) Application Due Date: January 30, 2025, at 8:59PM PST Application Award Date: June 28, 2025 Obligation Date (if awarded): No later than September 30, 2029 Staff recommend submitting the Sullivan & Trent Interchange Project to this call for projects. This project has been submitted to RAISE in 2023 and 2024. Page 1 of 3 Application requests can only seek funds for “future eligible expenses” and awards cannot be used to reimburse for funds/phases already obligated. For example, in 2023 the engineering phase of the project was initiated. Therefore, the costs for the engineering phase are not allowed to be a “future eligible expense” for the project. Related, the City has secured funding for the right-of-way phase of the project but has not initiated that phase yet; therefore, those secured funds can be considered when calculating the application’s “future eligible expense” for the project. The project’s engineering design phase is approximately 30% complete. The RAISE application requires a unique funding breakdown the separates previously incurred costs and future eligible costs. It further requires a separation of future eligible costs by federal and non-federal funding. Table 1 below illustrates the application’s proposed funding scenario specific to the RAISE program, including a $25 million RAISE request, $8.5 million of “not secured” federal funds and $8.9 million of “not secured” non-federal funds. Table 1. RAISE Application Funding Summary Previously Incurred Project CostsTotal ($)Total (%) Federal Funding 2023-2025 Design Engineering$ 3,919,500 80.39% Subtotal$ 3,919,500 80.39% Non-Federal Funding 2022 Alternatives Analysis$ 388,604 7.97% 2023-2025 Design Engineering$ 567,375 11.64% Subtotal$ 955,979 19.61% Total Previously Incurred Project Costs$ 4,875,479 100.00% Future Eligible Project Costs Total ($)Total (%) Federal Funding RequestedRAISE Program$25,000,000 51.13% Secured2022 + 2023 Congressionally Directed Spending (Earmarks)$ 5,650,000 11.56% Not SecuredPotential max Federal grants to meet 80% Federal participation.$ 8,464,407 17.31% Subtotal$39,114,407 80.00% Non-Federal Funding CommittedCity of Spokane Valley (13.5% Match for Secured Funds)$ 881,792 1.80% Potential Sources: City of Spokane Valley, Transportation Not SecuredImprovement Board (TIB), Legislative Direct Allocation, Freight $ 8,896,810 18.20% Mobility & Strategic Investment Board (FMSIB) Subtotal$ 9,778,602 20.00% Total Future Eligible Project Cost$48,893,009 100.00% RAISE Total Project Cost $ 53,768,488 OPTIONS: Discussion. RECOMMENDED ACTION OR MOTION: Council consensus to develop the Sullivan/Trent Interchange project application for the RAISE program and return to city council on January 14 for a motion consideration authorizing the City Manager to submit the project to RAISE FY2025. Page 2 of 3 BUDGET/FINANCIAL IMPACTS: If awarded, there are multiple points of consideration: 1. An unsecured balance of $17.4 million needs to be secured. To provide the required RAISE match, the City will need to secure at least $8.9 million of non-federal funds. The remaining $8.5 million of “not secured” funds could be either federal or non-federal funds. 2. The City has allocated $365,000 of REET and $500,000 of Fund 312 to the project. Additionally, there is approximately $1.2 million from the Northeast Industrial Area Planned Action Ordinance mitigation fee revenues available for the project. In total, these funds equal $2,065,000. This secured funding provides the necessary local match for all secured grant funds to date. The City has not allocated any other local funds for the project. 3. The City should expect that a future allocation of local funds will be required. 4. Staff contracts with a consultant to update the RAISE application’s benefit cost analysis document. The consultant cost is estimated not to exceed $14,550 and is included in the budget. STAFF CONTACT: Adam Jackson, Engineering Manager ____________________________________________________________________________ ATTACHMENTS: PowerPoint Page 3 of 3 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: January 7, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Admin Report: Clean Buildings Performance Grants (CBPG) GOVERNING LEGISLATION: Clean Building Law (House Bill 1257 & Senate Bill 5722) PREVIOUS COUNCIL ACTION TAKEN: April 12, 2024: Admin report - Clean Building requirements and two potential grant opportunities April 23, 2024: Motion Consideration - Clean Building requirements and two potential grant opportunities September 17, 2024: Admin report - Department of Commerce Energy Retrofit Grant opportunity December 10, 2024: Admin report Association of Washington Cities (AWC) Energy Grant December 17, 2024: Motion consideration AWC Energy Grant BACKGROUND: Governor Inslee signed the Clean Building Law (H.B. 1257) in 2019 and Senate Bill 5722 in 2022. The Department of Commerce (Commerce) developed energy performance standards for non- residential buildings. Tier 2 buildings have a gross area between 20,000 and 50,000 square feet (sq ft). Tier 1 buildings have a gross area that exceeds 50,000 sq ft. These requirements apply to three city-owned buildings: CenterPlace (56,055 sq ft), City Hall (65,299 sq ft) and the Police Precinct (22,010 sq ft). Compliance dates for the cand Tier 2 buildings are June 1, 2028, and June 1, 2027, respectively. These standards implement the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 100-2018. WAC 194-50-001. The law aims to reduce carbon pollution caused by non-residential buildings by establishing energy use intensity targets (EUIt) specific to Washington. The law has the added effect of requiring buildings to efficiently use energy saving measures. There are several preliminary steps required for compliance. First, the City must conduct a benchmark for Tier 1 buildings which is the process of measuring and tracking energy use. This process is intended to document building characteristics and energy consumption so it can be compared to similar buildings. This must be done using at least 12 consecutive months of data. The benchmark was completed for City Hall and CenterPlace and indicates that City Hall meets the required target, however, CenterPlace does not. Since July 2024, the city has secured grant funding to complete an energy audit for CenterPlace. For Tier 1 and Tier 2 buildings, the City also must establish and implement an operation and maintenance (O&M) program and an energy management plan (EMP). On December 16, 2024, Commerce released a new funding opportunity. The Clean Buildings Performance Grants provides funding to meet the Clean Buildings Performance Standard. Eligible expenditures are: Energy efficiency retrofits Contracted services for audits, benchmarking, developing O&M programs and EMP. Page 1 of 2 Applications are due on January 30, 2025, and projects must be completed by June 30, 2025. Key grant information includes: Applications are due January 30, 2025 Approximately $35M is available statewide. Approximately $15M is available for Tier 1 and 2 publicly owned buildings. There is no match required Maximum award is $2M, no minimum Funds must be spent by June 30, 2025. Pending legislative approval, the funding may be appropriated to extend the period of performance. budget for 2025-27, the funds are proposed to be reappropriated and an additional $10 million is allocated to the program. Staff propose to apply for funds to replace the chillers at CenterPlace. The estimated replacement cost is approximately $500k. As part of developing the grant application, staff will refine the replacement cost. OPTIONS: Discussion only. RECOMMENDED ACTION OR MOTION: Staff requests Council consensus to further develop a grant application and return to Council on January 14, 2025, for a motion consideration authorizing the City Manager to submit the recommended application to Commerce. BUDGET/FINANCIAL IMPACTS: The preliminary estimate to replace the chillers is $500k. The grant does not require a match. STAFF CONTACT: Gloria Mantz, City Services Administrator ATTACHMENTS: None Page 2 of 2