The URL can be used to link to this page

Home My WebLink About2026, 05-05 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, May 5, 2026 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 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. Citizens must register by 4 p.m. the day of the meeting to provide comment by Zoom. Please use the links below to register to provide verbal or written comment. Sign up to Provide Verbal 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 any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to 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 unre 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. ACTION ITEMS: 1. Second Read: Ordinance 26-005 Virtual Currency Kiosks Caitlin Prunty \[public comment opportunity\] 2. Second Read: Ordinance 26-006 Opportunity Fund CTA Kelly Konkright, Mike Basinger \[public comment opportunity\] Council Agenda May 5, 2026 Page 1 of 2 NON-ACTION ITEMS: 3. Admin Report: Recap of the 2026 State Legislative Session Virginia Clough, Briahna Murray 4. Admin Report: Parks & Rec. Summer Season Preview Presentation Kendall May 5. Admin Report: 2026 Budget Amendment Chelsie Walls INFORMATION ONLY(will not be reported or discussed): GENERAL PUBLIC COMMENT OPPORTUNITY:General public comment rules apply. COUNCILCOMMENTS CITY MANAGER COMMENTS EXECUTIVE SESSION ADJOURNMENT Scan to access the meeting materials Council AgendaMay 5, 2026 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: May 5, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE: Ordinance 26-005 Second Reading: Virtual Currency Kiosks GOVERNING LEGISLATION: Washington State Constitution Article XI, Section 11; RCW 35A.11.020; RCW 35.22.280; Chapter 7.80 RCW PREVIOUS COUNCIL ACTION TAKEN: On January 20, 2026, Council heard an administrative report on cryptocurrency ATMs (also known as “Virtual Currency Kiosks”) and options for a code text amendment prohibiting such ATMs/kiosks in Spokane Valley. On April 7, 2026, Council had a first reading of Ordinance 26-005. BACKGROUND: Cryptocurrency emerged in 2009 as a form of digital money that operates without a central bank or government oversight. Essentially, it is a peer-to-peer electronic cash system that was created to allow online payments to be sent directly from one party to another without going through a financial institution. Bitcoin was the first form of cryptocurrency and is the most well-known. As such, Bitcoin is often used to refer broadly to cryptocurrency, although there are many different forms of cryptocurrency. Cryptocurrency automated teller machines (ATMs) are physical kiosks, much like traditional ATMs that let you buy, or in some cases sell, cryptocurrency using cash or a debit card. They are often referred to as “Bitcoin ATMs” or “virtual currency kiosks.” Instead of connecting to a bank account and dispensing cash from a checking or savings account, virtual currency kiosks transfer cryptocurrency to a digital wallet. Virtual currency kiosks do not require lengthy account verification processes or bank account linking. This anonymity is easy to take advantage of by scammers. Typically, individuals engaged in scams and fraud schemes direct victims to use a virtual currency kiosk to send payments under false pretenses. The scammers claim that depositing cash into a virtual currency kiosk will fix the fake problem they’ve invented. The scammer will direct the victim to their bank to withdraw cash. Next, they send the victim to a nearby virtual currency kiosk location, likely a specific one, to deposit the cash. The scammer will text a QR code to scan at the machine, and once the victim scans the code, the cash deposit goes directly into the scammer’s digital wallet. Once the cash is deposited, the cryptocurrency is very difficult to track, which often leads to a low chance of recovery if the victim reports the crime. In January of 2024, the Washington State Department of Financial Institutions (“DFI”) issued a consumer alert to notify Washington consumers that there was a rise in the use of virtual currency kiosk to perpetuate fraudulent activity. The federal Financial Crimes Enforcement Network has issued similar notices. Currently there is no state or federal legislation prohibiting cryptocurrency ATMs. At the state level, the Senate passed Senate Bill 5280 last session – a consumer protection bill that establishes daily limits on transactions, establishes limits on fees, requires specific warnings, and requires reporting, among other safeguards. However, SB 5280 did not make it through the House and did not become law. The Spokane Valley Police Department has been tracking and investigating crimes involving cryptocurrency ATMs, and Spokane Valley residents have fallen victim to fraudulent schemes involving virtual currency kiosks. This creates a significant public safety and welfare issue that is affecting citizens. Notably, the City of Spokane unanimously passed an ordinance prohibiting virtual currency kiosks in June of 2025. The City has authority, through its police power, to adopt regulations to protect public health, safety, and welfare. This authorization grants the City power to prohibit virtual currency kiosks in Spokane Valley. Background information on virtual currency kiosks was presented for Council’s consideration at the January 20, 2026 Council meeting. Council gave consensus to move forward with a first reading. The first reading was held on April 7, 2026, and Council moved to advance Ordinance 26-005 to a second reading. The attached proposed ordinance prohibits virtual currency kiosks in Spokane Valley and classifies a violation as a civil infraction. OPTIONS: (1) Move to approve Ordinance 26-005, adopting chapter 7.60 SVMC prohibiting Virtual Currency Kiosks in the City of Spokane Valley, or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: Move to approve Ordinance 26-005, adopting chapter 7.60 SVMC prohibiting Virtual Currency Kiosks in the City of Spokane Valley. BUDGET/FINANCIAL IMPACTS: None anticipated. STAFF/COUNCIL CONTACT: Caitlin Prunty, Deputy City Attorney, Dave Ellis, Spokane Valley Police Chief ATTACHMENTS: Proposed Ordinance 26-005: An Ordinance of the City of Spokane Valley, County of Spokane, State of Washington Adopting Title 7, Chapter 60 of the Spokane Valley Municipal Code Relating to Virtual Currency Kiosks CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 26-005 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, COUNTY OF SPOKANE, STATE OF WASHINGTON, ADOPTING TITLE 7, CHAPTER 60 OF THE SPOKANE VALLEY MUNICIPAL CODE RELATING TO VIRTUAL CURRENCY KIOSKS. WHEREAS, pursuant to Article XI, Section 11 of the Washington Constitution, the City of Spokane Valley (“City”) is authorized to “make and enforce within its limits all such local police, sanitary and other regulations as are not in conflict with general laws,” which include regulations necessary to protect public health, safety, and welfare; and WHEREAS, Virtual Currency Kiosks allow consumers to sell and purchase virtual currency (also known as “cryptocurrency”) through virtual transactions and are similar in appearance to ATMs; and WHEREAS, Virtual Currency Kiosks are often placed at convenience stores, gas stations, and other high-traffic areas; and WHEREAS, virtual currency is often used as a payment method for scams because it is decentralized, difficult to track, and often not recoverable; and WHEREAS, Virtual Currency Kiosks offer a simple and convenient way to defraud victims by directing them to send payments under false pretenses; and WHEREAS, the F.B.I., U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), and Washington State Department of Financial Institutions have identified that Virtual Currency Kiosks are frequently used for fraud and exploitation; and WHEREAS, the F.B.I.’s 2024 Internet Crime Report documented 10,956 complaints and $246.7 million in losses, which is a 99% increase in complaints and a 31% increase in losses from 2023; and WHEREAS, the Spokane Valley Police Department has reported several scams against Spokane Valley residents, which resulted in one suicide associated with the victim losing their lifesavings; and WHEREAS, the State of Washington has not enacted any laws or regulations governing Virtual Currency Kiosks; and WHEREAS, Virtual Currency Kiosks are present at various retail locations in Spokane Valley and pose a risk to the City’s residents; and WHEREAS, prohibiting Virtual Currency Kiosks protects the public health, safety, and welfare of residents of Spokane Valley. NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington ordains as follows: Section 1. Purpose. City Council finds that Virtual Currency Kiosks cause harm to public health, safety, and welfare and that it is in the best interest of the City to prohibit Virtual Currency Kiosks within City limits. - 1 - Section 2. New Chapter. Chapter 7.60 is adopted as follows: Chapter 7.60 VIRTUAL CURRENCY KIOSKS Sections: 7.60.010 Purpose and Intent 7.60.020 Definitions. 7.60.030 Exceptions. 7.60.040 Virtual Currency Kiosks Prohibited 7.60.050 Violations – Penalties 7.60.010 Purpose and Intent. The purpose and intent of chapter 7.60 SVMC is to prevent dangers to public health and safety of Spokane Valley residents and to preserve public morality and peace from manipulation and fraudulent conduct by prohibiting Virtual Currency Kiosks from being located or operated within the City of Spokane Valley. 7.60.020 Definitions. For the purposes of this chapter, the following words shall be defined as: “Virtual Currency” means a digital representation of value used as a medium of exchange, a unit of account, or a store of value, but does not have legal tender status as recognized by the United States Government. “Virtual Currency Kiosk” means a stand-alonen electronic terminal accessible to the general public that facilitates the exchange of virtual currency for money or other virtual currency. “Virtual Currency Kiosk Operator” means a person, cooperative, organization, or legal entity that: 1. knowingly permits the use or installation of a Virtual Currency Kiosk on property owned, leased or controlled by the person, cooperative, organization, or legal entity; 2. operates a Virtual Currency Kiosk within City of Spokane Valley limits; or 3. owns a Virtual Currency Kiosk that is either located or operated within City of Spokane Valley limits. 7.60.030 Virtual Currency Kiosks Prohibited No person, cooperative, organization, or legal entity may host, allow, operate, permit, locate, or place a Virtual Currency Kiosk within the City Spokane Valley. All Virtual Currency Kiosks existing in the City of Spokane Valley as of the Effective Date of this Ordinance must be removed within 30 days after the Effective Date. 7.60.040 Exceptions Nothing in this chapter shall be construed to regulate or restrict a transfer of Virtual Currency. This chapter does not apply to any Virtual Currency transfers that are conducted without the use of a Virtual Currency Kiosk and does not intend to interfere with other types and methods of Virtual Currency transfers. 7.60.050 Violation - Penalty A violation of SVMC 7.60.030 shall result in a class 1 civil infraction with a fine of $250 issued to the - 2 - Virtual Currency Kiosk Operator. The City of Spokane Valley may revoke or deny the business license of any Virtual Currency Kiosk Operator found to be in violation of SVMC 7.60.030. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after publication of the Ordinance Summary. Passed this ______ day of ________________, 2026. Laura Padden, Mayor ATTEST: Marci Patterson, City clerk Approved as to form: Office of the City Attorney Date of Publication: Effective Date: - 3 - CITY OF SPOKANE VALLEY Request for Council Action Meeting Date:May 5, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Second Reading: Ordinance No. 26-006 – Code Text Amendment for TPA Opportunity Fund GOVERNING LEGISLATION: Chapter 3.21 SVMC, RCW 35.101 PREVIOUS COUNCIL ACTION TAKEN: On Aug. 21, 2025, the TPA Hotel Commission approved a recommendation to City Council to commit $1,325,000 in 2026 TPA revenue for destination marketing and event recruitment services. This budget was based on projected tourism travel and historical revenue generation. The Commission also recommended including $450,000 in 2025 TPA carryover funds, creating a total 2026 budget of $1,775,000. In addition, the Commission recommended a 2026 Work Plan that uses budgeted funds to purchase destination and sports recruitment marketing services, technology services, and to establish an “Opportunity Fund” to market events and venues in and near Spokane Valley. On Sept. 9, 2025, City Council heard an administrative report and recommended by consensus that staff bring forward a motion to approve the 2026 TPA budget of $1,775,000 and Work Plan. On Sept. 16, 2025, City Council approved a motion to approve the recommended 2026 TPA Budget of $1,775,000 and Work Plan. On Oct. 16, 2025, the TPA Commission approved a recommendation to City Council to divide the 2026 TPA budget of $1,775,000 into four allocations: $875,000 for destination marketing; $700,000 for sports recruitment and marketing; up to $30,000 for technology services; and $170,000 for an Opportunity Fund to support destination events and venues, while also granting the TPA Commission the authority to administer the fund. The Commission was informed at this meeting that an amendment to the city Municipal Code may be necessary to allow the Commission to administer the Opportunity Fund. On Oct. 28, 2025, City Council heard an administrative report and recommended by consensus that staff bring forward a motion to (1) place $170,000 of 2026 TPA revenue into an Opportunity Fund to distribute to destination venues and events based on presented criteria that will be approved by City Council and adopted in the SVMC; and (2) grant the TPA Commission administrative authority to review Opportunity Fund applications and award funding. On Nov. 18, 2025, City Council approved a motion to place $170,000 of 2026 TPA revenue into an Opportunity Fund to distribute to destination venues/events and grant the TPA Commission administrative authority to review Opportunity Fund applications and make grant funding decisions subject to Council review, all pursuant to authority and criteria that Council will review and adopt by separate ordinance at a later date. On Feb. 19, 2026, the TPA Commission, by unanimous consensus, recommended that City Council approve the draft text amendments to Chapter 3.21 of the Spokane Valley Municipal Code (attached hereto as Ordinance No. 26-006). If adopted, these code text amendments will enable TPA revenue to be utilized to operate a “Tourism Opportunity Fund” andgrant theTPACommissionadministrative authority to review applications and award funding, pending City Council oversight by placing the funding award on the next regularly scheduled consent agenda of City Council, or on the next available non-consent agenda if the funding award is time sensitive and the consent agenda is not an option. On April 28, 2026, staff presented the draft code text amendments to City Council to review, consider, and discuss. City Council voted to advance Ordinance No. 26-006 to a second reading for adoption consideration. BACKGROUND: After City Council approved placing $170,000 of 2026 TPA revenue into an Opportunity Fund on Nov. 18, 2025, city staff in collaboration with the City Attorney’s Office determined that a code text amendment would be necessary to fully implement the program. City Attorney Kelly Konkright and Tourism and Marketing Manager Lesli Brassfield met with the TPA Commission on Dec. 18 to explain the code text amendment process, and discuss first draft edits to Spokane Valley Municipal Code Section 3.21, the section that authorizes the TPA program. Discussions continued at the Jan.15 TPA Commission meeting and were focused on finalizing draft text that identifies the type and amount of information (criteria) that should be included in the application process to help commissioners determine if a funding request should be approved. In addition, there was discussion regarding the decision process, and authority of the Commission to award funding. As experts in the lodging industry with a broad understanding of what type of events or venues generate overnight hotel stays, commissioners recommended to city staff that the application process be simple, and require only the necessary information to determine the potential “destination” value of an event or venue. Staff recommended that the Commission’s decision to award funding be validated by City Council by placing the Commission’s funding award decision on the Council’s next consent agenda, or on the next available non-consent agenda if the Opportunity Fund award is time sensitive. If a councilmember does not approve of the Commission’s decision, the councilmember would have the option to request that the item be pulled from the consent agenda for Council discussion and action. A final draft of the code text amendments was presented to the TPA Commission on Feb. 19, and the Commission, by unanimous consent, recommended that the draft as presented go forward to City Council for consideration. OPTIONS: (1) Move to adopt Ordinance 26-006 adopting amendments to chapter 3.21 SVMC creating the Tourism Opportunity Fund and authorizing the City of Spokane Valley Tourism Promotion Area Commission to administer the same, or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: Move to adopt Ordinance 26-006 adopting amendments to chapter 3.21 SVMC. BUDGET/FINANCIAL IMPACTS: City Council has approved placing $170,000 in 2026 TPA revenue into the Opportunity Fund. This funding would be available for the TPA Commission to distribute after approval of text amendments to Chapter 3.21 SVMC. STAFF CONTACTS: Mike Basinger, Community & Economic Development Director; Kelly Konkright, City Attorney ATTACHMENTS: Proposed Ordinance 26-006: An Ordinance of the City of Spokane Valley Amending Title 3, Chapter 21 of the Spokane Valley Municipal Code Creating the Tourism Opportunity Fund and Authorizing the Spokane Valley Tourism Promotion Area Commission to Administer the Same. CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 26-006 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING AMENDING CHAPTER 3.21 OF THE SPOKANE VALLEY MUNICIPAL CODE TO ESTABLISH A TOURISM OPPORTUNITY FUND, AND OTHER MATTERS RELATING THERETO. WHEREAS, the City of Spokane Valley City Council adopted Ordinance No. 22-016 which (1) established the Spokane Valley Tourism Promotion Area (“TPA”) comprised entirely of the corporate limits of the City pursuant to RCW 35.101.020, (2) established the Spokane Valley Tourism Promotion Area Commission (“TPA Commission”) to make recommendations for use of TPA tax revenue received by the City, (3) established a tax under RCW 35.101.050 and a separate tax under RCW 35.101.057 on overnight lodging within the TPA, and (4) restricts the City’s use of such tax revenue for the purpose of promoting tourism within the City; and WHEREAS, on August 21, 2025, the TPA Commission recommended using a portion of TPA tax revenues to fund a “Tourism Opportunity Fund” from which the TPA Commission may, subject to review and approval by City Council, award funds to venues or event organizers to help defray the costs of locating a tourism-generating event within the City and incentivize such tourism-generating events to locate within the City; and WHEREAS, on November 18, 2025, the City of Spokane Valley City Council (1) approved a duly made motion to create the Tourism Opportunity Fund and fund it in 2026 with $170,000 from TPA funds for year 2026 and (2) directed City staff to propose amendments to the Spokane Valley Municipal Code to identify criteria for disbursements to be made from the Tourism Opportunity Fund to venues or event organizers; and WHEREAS, on February 19, 2026, the TPA Commission, by unanimous vote, recommended that City Council approve the presented draft text amendments to Chapter 3.21 of the Spokane Valley Municipal Code in order for the TPA Commission to begin administering the Tourism Opportunity Fund; NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, ordains as follows: Section 1. Amendment to SVMC 3.21.050. Spokane Valley Municipal Code 3.21.050 shall be amended as follows: 3.21.050 Uses of lodging charge revenue. A. The uses described in SVMC 3.21.050 are limited to tourism promotion pursuant to RCW 35.101.010(4) and may include payment of administrative costs associated with operation of the tourism promotion area as determined by the city council. B. Revenue from lodging charges collected from the charges under Chapter 3.21 SVMC shall only be used for the following purposes: 1. The general promotion of tourism within Spokane Valley and the Spokane metropolitan area as specified in the annual tourism promotion area work plan/budget, to be adopted annually; City of Spokane Valley Ordinance No. 26-006 2. The marketing of convention, and trade shows, and eventsthat benefit local tourism and the lodging business in Spokane Valley; 3. The marketing of Spokane Valley and the Spokane metropolitan area to the travel industry to benefit local tourism and the lodging businesses in Spokane Valley; and 4. The marketing of Spokane Valley and the Spokane metropolitan area to recruit sporting events in order to benefit local tourism and the lodging businesses in Spokane Valley;. 5. To operate a fund established hereby and referred to herein as the “Tourism Opportunity Fund”. The purpose of the Tourism Opportunity Fund is to incentivize significant trade events, special interest events, entertainment events, and/or sporting events to locate within or near the City when said events arereasonably expectedto generate a substantial amount of tourism within the City, including but not limited to overnight stays in lodging businesses. The funds may be used to mitigate an event organizer’s expenses to locate an event within or near the City, or for a venue withinor near the City to offer amenities for an event in order to incentivize an event organizer to locate a specific event at said venue. C. Pursuant to RCW 35.101.130, the city council shall have sole discretion as to how the revenue derived from the lodging charge imposed pursuant to Chapter 3.21 SVMC is to be used for tourism promotion. In exercising its discretion on use of these funds, city council shall consider the recommendation(s) of the Spokane Valley hotel/motel tourism promotion area commission established pursuant to SVMC 3.21.070. (Ord. 22-016 § 5, 2022). Section 2. Amendment to SVMC 3.21.070. Spokane Valley Municipal Code 3.21.070 shall be amended as follows: 3.21.070 Hotel/motel tourism promotion area commission. A. The hotel/motel tourism promotion area commission (also referred to in this Chapter as “the commission”) is created as an advisory body to make recommendations to the city council for use of the revenue derived from that portion of the taxes/charges imposed by this SVMC 3.21 et seq. that city council has not designated for the “Tourism Opportunity Fund” established in SVMC 3.21.050(B)(5). B. Tourism Opportunity Fund: 1. The commission is authorized and directed to receive and review complete written applicationsfor funding from the Tourism Opportunity Fund. Except as otherwise provided herein, the commission shall review pending complete Tourism Opportunity Fund applications, if any, at each regularly scheduled meeting of the commission. If delaying review of a complete application until the next regularly scheduled meeting renders the request moot, then upon receiving a Tourism Opportunity Fund request the City shall (1) schedule a special meeting of the commission to review the request, and (2) provide notice thereof to the public in accordance with applicable law. 2. Tourism Opportunity Fund Application: An event organizer or venue may apply for a funding award from the Tourism Opportunity Fund by submitting a written application to the hotel/motel tourism promotion area commission. If an applicant is applying for multiple non-associated events, then they must submit a separate application for each event. To be eligible for consideration, the application must include the following: City of Spokane Valley Ordinance No. 26-006 i. The applicant’s name, phone number, email address, and physical mailing address. If the applicant is an entity, then the applicant must also identify what type of entity it is (i.e. corporation, limited liability company, etc.) and whether it is a for-profit or non-profit entity. ii. Detailed description of the proposed event. The description shall include (a) the date(s), location(s), and specific venue(s) of the event; (b) the purpose(s) of the event and a description of the activities that will occur at the event; and (c) whether the event is intended to be a one-time event, an event that will repeat on a recurring basis (including the expected interval between events), or part of a series of associated events. iii. Whether the applicant is a venue owner or operator and, if so, identify (a) whether and specifically how the applicant intends to use the funds to recruit one or more events to said venue, (b) the specific event(s) to be recruited, (c) any pertinent deadlines that applicant must meet in order to recruit said event(s), and (d) the date by which the applicant anticipates being notified whether the event will locate at the applicant’s venue. iv. Whether the event will be held at the identified location if the application for funding from the Tourism Opportunity Fund is denied and, if not, the alternate location or locations at which the applicant may hold the event. v. Identify the market demand for the event along with an explanation of how the event will generate tourism activity within the City, including but not limited to (1) the total projected number of “tourists,” as defined in RCW 35.101.010(5), that are reasonably expected to attend the event, and (2) the projected number of overnight stays in lodging businesses within the City by tourists as a result of the event. vi. Identify the demographic and geographic market(s) to which the event is or will be targeted. This information should be demonstrated by market data and research. If the applicant has data regarding one or more past similar events, and the data demonstrates whether and the extent to which those past events generated tourism in the area where it was held, then said data must be included with the application unless applicable law prevents the applicant from doing so. vii. The marketing plan that the applicant will implement to attract tourists to attend the event, which plan must include a marketing budget, strategy, and timeline. viii. Identify (a) the amount of funds the applicant is requesting from the Tourism Opportunity Fund, and (b) the specific expenses of the event for which the funds will be used, or the amenities that the venue will provide using the funds, if the application is approved. xiv. Identify the methods the applicant will use in order to (1) measure the total number of lodging room nights of tourists that were generated by the event for hotels within the City and outside of the City, but within Spokane County, and (2) quantify the actual economic impact on hotels of the event in the tourism promotion area based on an average daily rate. 3. Review by the Commission: In reviewing applications for use of the Tourism Opportunity Fund, the commission shall determine whether each of the following criteria are met: i. The applicant may be a person, nonprofit entity, or for-profit entity, but must be either (a) a venue owner or operator; or (b) an event organizer/organization. ii. The proposed use of the funds must be for an approved use identified in RCW 35.101 et seq. or SVMC 3.21 et seq. City of Spokane Valley Ordinance No. 26-006 iii. The event must be either a destination convention, conference, trade show, association gathering, sports event, entertainment event, or similar event that is expected to generate tourism activity in the City. iv. The event cannot be a private wedding, memorial, family reunion, or similar private social event. v. The date of proposed event must be identified in the application and be within five (5) years after the application was submitted. vi. The applicant must demonstrate that the event will generate substantial tourism within the City, including but not limited to overnight stays of tourists within the City. vii. The event does not include any activity that is contrary to applicable law. 4. Decision of the Commission: i. The commission must deny all Tourism Opportunity Fund applications that do not satisfy all of the criteria identified in subsections B.2. and B.3. herein. If an application meets all of the criteria, then the commission may grant the request, in full or in part, only if and to the extent the expected return on investment to the economy within the tourism promotion area warrants an award from the Tourism Opportunity Fund. The commission does not have authority to award funds in amounts greater than that requested by the applicant in their written application. ii. The commission’s decision on any given application shall be placed on the next regularly scheduled consent agenda of City Council. Alternatively, the commission’s decision may be presented as a non-consent agenda item at the next regularly scheduled Council meeting rather than on the next regularly scheduled consent agenda if the next regularly scheduled City Council meeting does not include a consent agenda. The commission’s decision shall be final immediately following said City Council meeting unless the City Council vetoes the commission’s decision by majority vote at said meeting. If City Council vetoes the commission’s decision, then the application shall be deemed denied in its entirety. 5. Before receiving any funds awarded from the Tourism Opportunity Fund, a successful applicant must first execute an agreement containing terms identified by the City. Said agreement must include the following terms in addition to other terms the City deems appropriate: i. Identify the total amount of funds awarded from the Tourism Opportunity Fund. ii. Identify a mandatory process for seeking fund disbursements, including whether the funds will be disbursed on a reimbursement basis for qualified expenses incurred for the event or an alternative basis. If the disbursement is on a reimbursement basis, then the applicant must provide invoices or other evidence demonstrating the expenses submitted for reimbursement are qualified expenses for the event that the applicant actually paid. If the disbursement process is not on a reimbursement basis, then within forty-five (45) days after receiving a disbursement, the applicant must provide the City with invoices or other evidence sufficient to establish that the disbursed funds were used for uses authorized by the agreement. iii. Require the applicant to apply the awarded funds only for the specific purpose(s) authorized by the commission and specifically identified in the agreement, iv. Require the applicant, within sixty (60) days after the event has concluded, to complete and submit a report to the City identifying the event’s total economic lodging impact within the City of Spokane Valley Ordinance No. 26-006 tourism promotion area, including but not limited to the total overnight stays generated by the event and the total number of tourists that attended or participated in the event; v. Require the applicant to indemnify the City for any claims arising out of any matter or situation related to the event other than claims alleging injury or damage resulting solely from negligence of the City; vi. Require the applicant to procure insurance naming the City as an additional insured with coverage limits in amounts that the City deems sufficient to satisfy the applicant’s indemnity obligations; and vii. Provide that a breach of the agreement by the applicant entitles the City to (a) a return of any funds disbursed to but not yet expendedby the applicant, (b) be reimbursed by the applicant for funds spent in violation of the agreement, (c) deny pending or future applications submitted by the applicant for funding from the Tourism Opportunity Fund; (d) terminate the agreement; and (e) demand any other relief authorized by applicable law. viii. Provide that funds from the Tourism Opportunity Fund (a) cannot be used for any event other than the event identified in the application and for which the commission awarded said funds, and (b) must be returned to the City for deposit back into the Tourism Opportunity Fund if the event is cancelled or otherwise does not occur at the location identified in the application. C. Appointments to or removals from the hotel/motel tourism promotion area commission shall be made by the mayor, with confirmation by a majority of council pursuant to the then-currently adopted governance manual. BD. The hotel/motel tourism promotion area commission shall be composed of five voting representatives from the following hotel chain scales, as defined by Smith Travel Research (STR). If no representative from a hotel in the corresponding chain scale is willing or able to serve on the hotel/motel tourism promotion area commission, that position may be made available to a representative of any lodging business within the boundaries of the tourism promotion area: 1. One economy hotel; 2. One midscale hotel; 3. One upper midscale hotel; 4. One upscale hotel; 5. One full-service hotel over 200 rooms. A commission member may only represent one type of property identified in SVMC 3.21.070(B)(1) through (5) at any given time, and an ownership group may only represent one such property on the commission at any given time. CE. In addition to the above voting commission members, there shall be one nonvoting ex officio member as assigned by the city manager, who will function as a liaison between the city council and the hotel/motel tourism promotion area commission. FD. For appointment of the initial hotel/motel tourism promotion area commission, three members shall have a three-year term, and two members shall have a two-year term. Upon the expiration of the initial three-year term, the term for those three positions shall thereafter convert to a two-year term. City of Spokane Valley Ordinance No. 26-006 GE. Members of the hotel/motel tourism promotion area commission shall serve without compensation. HF. All meetings of the hotel/motel tourism promotion area commission are subject to Washington’s Open Public Meetings Act, Chapter 42.30 RCW, and Washington’s Public Record Act, Chapter 42.56 RCW. (Ord. 22-016 § 7, 2022). Section 3. Amendment to SVMC 3.21.080. Spokane Valley Municipal Code 3.21.080 shall be amended as follows: 3.21.080 Spokane Valley tourism promotion area annual work plan/budget. A. The hotel/motel tourism promotion area commission shall develop a recommended annual work plan/budget for use of Spokane Valley TPA revenues., The work plan shall include including (1) recommended activities and programs for funding from the taxes/charges authorized by Chapter 3.21 SVMC, and (2) including a complete list of projects for which application was made for funding for that year, and (3) the amount of funding, if any, to designate for the Tourism Opportunity Fund in the City’s budget for the upcoming fiscal year. The recommended work plan/budget shall be submitted to the city council in written form no later than November 15thSeptember 30th of each calendar year for inclusion in the City’s annual budget adoption process. B. The city council may by motion approve the proposed work plan/budget, or instead return the proposed work plan/budget to the hotel/motel tourism promotion area commission for further recommendations. C. The city council may not add a project to the annual work plan/budget that was not previously considered by the hotel/motel tourism promotion area commission. If such action is proposed by city council, the proposed work plan/budget shall be returned to the hotel/motel tourism promotion area commission for further discussion and recommendation, providing at least 20 days for comment unless the comment period is waived by the hotel/motel tourism promotion area commission. After the comment period, the city council may exercise its sole discretion as to how the revenue derived from the charge is to be used to promote tourism, pursuant to RCW 35.101.130(1). D. After the annual work plan/budget is adopted by city council, it shall govern the use of revenue derived from the charges during the calendar year in which annual work plan/budget was approved. The city council may make amendments to the annual work plan/budget by motion, subject to compliance with the requirements of SVMC 3.21.080(C) regarding review and comment period by the hotel/motel tourism promotion area commission. E. The hotel/motel tourism promotion area commission shall provide a written report to the city council at least 45 fifteen (15) days prior to when the annual work plan/budget is due to the city council. The report shall include information on the previous year’s operations of the tourism promotion area such as (but not limited to): 1. The number of hoteliers paying the tourism promotion area fee; 2. A summary of key factors influencing Spokane Valley’s visitor industry in the past year; 3. An outline of major initiatives including visitor marketing and promotion, recruitment of group meetings or sporting events occurring in the past year; 4. The level of hotel occupancy and associated room demand contrasted to previous year; 5. The level of TPA per-room night proceeds contrasted to previous year; City of Spokane Valley Ordinance No. 26-006 6. The number of group meetings or sporting events that were booked, or in which significant support services were provided by the booking organization. This would include the number of participants and estimated economic impacts; 7. Other relevant efforts and impacts of the TPA activities. (Ord. 22-016 § 8, 2022). Section 4. Severability. If any section, subsection, sentence of clause of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this chapter. Section 5. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof occurs in the official newspaper of the City as provided by law. Passed this _______ day of __________, 2026 ____________________________ Mayor Laura Padden ATTEST: _____________________________ City Clerk, Marci Patterson Approved As To Form: ____________________________ Office of the City Attorney Date of Publication:___________ Effective Date:_______________ City of Spokane Valley Ordinance No. 26-006 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: May 5, 2026 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 – Recap of 2026 State Legislative Session GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Adoption of 2026 State Legislative Agenda, October 7, 2025. BACKGROUND: The city’s state lobbyist, Briahna Murray, of Gordon Thomas Honeywell Government Relations will present a recap of the 2026 legislative session that concluded on March 12, 2026. Ms. Murray’s presentation will include an overview of the 2026 legislative session, outcomes of the city’s key legislative priorities, additional legislative issues and next steps. As part of the presentation, Ms. Murray will include the status of the city’s budget requests and Chief Ellis will brief Council on the outcomes of two public safety bills passed this session: SB 6002 regarding automated license plate readers and SB 5974, law enforcement qualifications. Next steps include implementation of newly-passed legislation, engagement with the Association of Washington Cities (AWC), planning and education, and seeking feedback and topics that Council would like her to explore as potential 2027 legislative agenda items. Over the coming months, Ms. Murray will research, conduct outreach to stakeholders, meet with key legislators, and evaluate the political viability of any proposals developed. These efforts will help streamline the development of the 2027 State Legislative Agenda in September. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Virginia Clough, Legislative Policy Coordinator and Briahna Murray, Gordon Thomas Honeywell Government Relations. ATTACHMENTS: Adopted 2026 State Legislative Agenda, PowerPoint Presentation $889 m increase CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: May 5, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE: 2026Recreation, Aquatics, and Parks Season Preview GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN:N/A BACKGROUND: The Parks and Recreation Department is preparing for a busy spring and summer season. The recreation team is currently hiring seasonal staff, organizing programs and special events, and promoting the wide range of activities available throughout the City’s park system. These offerings include both free community events and registration-based programs, providing accessible and affordable options for residents of all ages. To support these efforts, the recreation division partners with a variety of contracted providers, including those who assist in operating the City’s outdoor swimming pools. Staff is working closely with the YMCA to prepare the pools at Park Road, Terrace View Park, and Valley Mission Park for a mid-June opening. Earlier this year, the parks division launched a new registration system designed to streamline facility reservations, special event applications, and program enrollment, beginning on the first business day of 2026. This evening, staff will present an overview to City Council outlining plans for the 2026 recreation, aquatics, and parks programs, along with key highlights residents can look forward to this spring and summer. OPTIONS: Council Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: Recreation programs are designed to cover program expenses through revenues collected. STAFF CONTACT: Kendall May, Recreation Coordinator ATTACHMENTS: PowerPoint Presentation AGENDA CAMPS ADULT DANCE SALSA OUTDOOR MOVIES SPOKANE VALLEY POOLS AQUATIC PROGRAMS PAWS IN THE POOL EVENT Current shelter reservations: 100+Reservable Shelters: PARK SHELTER RESERVATIONS SPECIAL EVENTS SPOKANE VALLEY FARMERS MARKET GREENACRES COMMUNITY GARDEN CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: May 5, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Proposed 2026 Budget Amendment. GOVERNING LEGISLATION: In order for the City to amend an adopted budget, State law requires the Council to approve an ordinance that appropriates additional funds. PREVIOUS COUNCIL ACTION TAKEN: The Council last took formal action on the 2026 Budget when it was adopted on December 9, 2025. BACKGROUND: Since the initial adoption of the 2026 Budget on December 9, 2025, a number of events have transpired that necessitate a 2026 Budget amendment. The proposed budget amendments include: #001 - General Fund Revenues reflect a decrease of $260,700, including: $83,300 increase in grant proceeds due to the City being awarded a second COPS grant in late 2025. The grant is for $250,000 over three years. $344,000 net decrease in transfers in from Homeless Housing Program Fund #110 due to the restructuring of the accounting for the homeless outreach costs and related grant funding in Fund #110 rather than Fund #001. Provide additional appropriations (expenditures) of $786,600 comprised of: $46,500 increase in supplies in the Communications Department to cover costs related to City sponsored events. This includes $20,000 in recurring expenditures and $26,500 in nonrecurring expenditures for one-time purchases of reuseable supplies and equipment. These costs were discussed by Council at the Winter Workshop on February 24, 2026. $0 net change in travel costs in the City Council Department due to moving $1,000 of budgeted expenditures from Position 5 to Position 7 to reflect the change in Mayor for 2026. $300,000 decrease in homeless services outreach services. These costs will now be accounted for in the Homeless Housing Program Fund #110. $17,700 increase security hardware subscriptions for licensing costs to connect all existing security cameras to Milestone. This will get all cameras onto the same management platform. Milestone was purchased as part of the park security camera pilot project. Licenses are needed for existing city facility cameras at City Hall and CenterPlace. $100,000 increase in professional services in Engineering to complete a parking analysis to be incorporated into the City’s update of the Comprehensive Plan. This was discussed by Council at the March 10, 2026, Council meeting. $75,000 increase for professional services in Planning related to the City’s update of the Comprehensive Plan. Additional work for supplemental code updates and adequate provisions analysis was identified as a need during this process. $670,400 increase for various contract costs for activities funded through ARPA-related amounts. In part, these include costs for park cameras and Innovia Launch NW. $35,000 increase in capital equipment in General Government for the purchase of a drone for use at the City. This would replace the City’s existing drone which can no longer be used in various circumstances due to changes in Federal law. Page 1 of 4 $95,000 increase in capital software costs to acquire and implement the use of SharePoint for the City. This software will increase the efficiency of staff time through improved collaboration on documents as well as improved accessibility and document management for public records requests and retention. $47,000 increase in transfers to the Equipment Rental and Replacement Fund #501 to cover costs related to the replacement of two City vehicles. Funding put aside for the replacement of these two vehicles in prior years was about $58,000. This additional $47,000 would cover the remaining estimated replacement costs for the two new vehicles being requested. #101 – Street O&M Fund Revenues reflect anincrease of $750,000in estimated revenues from the new Automated Traffic Safety Camera program for half of 2026. This program was approved by Council at the December 16, 2025, Council meeting. Expenditures have an increase of $162,067 to add an engineer position in the Traffic Division to oversee and manage the Automated Traffic Safety Camera Program. The position is funded through the revenues just noted above, and was also approved at the December 16, 2025, Council meeting. #104 – Hotel/Motel Tax – Tourism Facilities Fund Increase in revenues of $447,000 for transfers in from the Hotel/Motel Tax Fund #105. This increase reflects a Council motion on December 16, 2025, as part of the lodging tax grant process for the 2026 awards. Increase in expenditures of $1,000,000 in transfers out to the Street Capital Projects Fund #303 for Sullivan improvements related to the Ice Sports Facility project. This represents half of the funding that was approved by Council motion on December 16, 2025, as the project is currently anticipated to begin in 2026 and conclude in 2027. #105 – Hotel / Motel Tax Fund Net decrease of $0 in expenditures comprised of an increase in transfers out to the Hotel / Motel Tax – Tourism Facilities Fund #104 of $447,000 and a decrease of $447,000 in tourism promotion costs as was approved during the lodging tax process at the December 16, 2025, Council meeting. #108 – Affordable & Supportive Housing Sales Tax Fund Revenues and expenditures increase by $2,350,000 related to the CHIP grants that were awarded to the City and will be passed through to SNAP and Habitat for Humanity. #110 – Homeless Housing Program Fund Revenues increase by $215,500 consisting of an increase of $35,000 in recording fees due to a 2025 law change and $180,500 in grant proceeds awarded to the City for homeless outreach services. Expenditure decreased by $44,000 consisting of a $300,000 increase in homeless outreach services and a decrease of $344,000 in transfers out to the General Fund #001. These changes are related to the restructuring of the accounting for the homeless outreach costs and related grant funding in Fund #110 rather than Fund #001. #303 – Street Capital Projects Fund Revenues and expenditures increase by $1,800,000 to add Sullivan improvements related to the Ice Sports Facility project. Funding is provided by a transfer in of $1,000,000 from the Hotel/Motel Tax – Tourism Facilities Fund #104 and of $800,000 from the Capital Reserve Fund #312. This represents half of the funding and expenditures as the project is currently anticipated to begin in Page 2 of 4 2026 and conclude in 2027. Allocations of funding were approved by Council on December 16, 2025, for Fund #104 and November 5, 2025, for Fund #312. #312 – Capital Reserve Fund Expenditures are increased by $800,000 in transfers out to the Street Capital Projects Fund #303 for the Sullivan improvements related to the Ice Sports Facility project. This represents half of the funding as the project is currently anticipated to begin in 2026 and conclude in 2027. Allocations of funding were approved by Council on November 5, 2025. #501 –Equipment Rental and Replacement Fund Revenues are increased by $47,000 in transfers in from the General Fund to cover costs related to the replacement of two City vehicles. Funding put aside for the replacement of these two vehicles in prior years was about $58,000. This additional $47,000 would cover the remaining estimated replacement costs for the two new vehicles being requested. Expenditures increase by $105,500 for the replacement of two City vehicles as described above. One vehicle will be for Code Enforcement purposes and is estimated to cost $68,500. The other vehicle will be for the Facilities Department and is estimated to cost $37,000. The 2026 Budget amendment reflects the changes noted above and will affect 9 funds resulting in total revenue increases of $5,348,800 and expenditure increases of $6,960,167. Of these increases, $1,950,000 reflect transfers between City Funds. RevenueExpenditure FundFundIncreaseIncrease No.Name(Decrease)(Decrease) 001General Fund(260,700)786,600 101Street O&M Fund750,000162,067 104Hotel/Motel Tax - Tourism Facilities Fund447,0001,000,000 105Hotel/Motel Tax Fund00 108Affordable & Supportive Housing Sales Tax Fund2,350,0002,350,000 110Homeless Housing Program Fund215,500(44,000) 303Street Capital Projects Fund1,800,0001,800,000 312Capital Reserve Fund0800,000 501Equipment Rental & Replacement Fund47,000105,500 5,348,8006,960,167 OPTIONS: Future options are to accept the proposed amendments in whole or in-part. RECOMMENDED ACTION OR MOTION: Staff seek Council consensus to move forward with amendments to the 2026 Budget as presented. If approved, we anticipate the following calendar of events leading to Council approval of the amending ordinance. May 12, 2026 – Public hearing on the 2026 Budget Amendment. May 12, 2026 – First reading of Ordinance #26-0XX amending the 2026 Budget. May 26, 2026 – Second reading of Ordinance #26-0XX amending the 2026 Budget. BUDGET/FINANCIAL IMPACTS: Once approved, this action amends the estimated revenues and appropriations for the 2026 Budget that was adopted on December 9, 2025. There are adequate funds available to pay for these amendments. STAFF CONTACT: Chelsie Walls, Finance Director __________________________________________________________________________ Page 3 of 4 ATTACHMENTS: Fund level line-item detail of revenues and expenditures. Fund summaries for all funds affected by the proposed budget amendment. Request documentation from various Departments. Page 4 of 4 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended #001 - GENERAL FUND RECURRING ACTIVITY Revenues Property Tax14,309,800014,309,800 Sales Tax33,541,200033,541,200 Sales Tax - Public Safety 4,274,90004,274,900 Sales Tax - Criminal Justice2,906,40002,906,400 Gambling Tax and Leasehold Excise Tax516,7000516,700 Franchise Fees/Business Registration1,330,00001,330,000 State Shared Revenues2,644,10002,644,100 Fines and Forfeitures/Public Safety481,4000481,400 Community and Public Works4,057,10004,057,100 Recreation Program Revenues716,7000716,700 Grant Proceeds436,50083,300519,800 Miscellaneous Department Revenue79,500079,500 Miscellaneous & Investment Interest2,625,00002,625,000 Transfers in - #105 (h/m tax-CP advertising)287,0000287,000 Transfers in - #110 (recording fees H&H Services)380,000(344,000)36,000 Total Recurring Revenues68,586,300(260,700)68,325,600 Expenditures City Council981,6530981,653 City Manager849,5830849,583 City Attorney1,029,32601,029,326 Communications708,70920,000728,709 Housing & Homeless Services673,326(300,000)373,326 Public Safety44,678,317044,678,317 Deputy City Manager654,3550654,355 Finance1,565,13501,565,135 Human Resources417,1050417,105 Information Technology474,9870474,987 Facilities1,477,32601,477,326 Engineering2,353,26002,353,260 Building2,117,27602,117,276 Economic Development1,314,96101,314,961 Planning1,055,91201,055,912 Parks & Rec - Administration474,1660474,166 Parks & Rec - Maintenance2,681,79802,681,798 Parks & Rec - Recreation 360,7740360,774 Parks & Rec - Aquatics680,5600680,560 Parks & Rec - Senior Center29,933029,933 Parks & Rec - CenterPlace735,6250735,625 General Government1,562,15017,7001,579,850 Transfers out - #204 (2016 LTGO debt service)398,7500398,750 Transfers out - #501 (IT equip reserve)92,500092,500 Transfers out - #502 (insurance premium)1,100,00001,100,000 Total Recurring Expenditures68,467,487(262,300)68,205,187 Recurring Revenues Over (Under) Recurring Expenditures118,8131,600120,413 Page 1 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended #001 - GENERAL FUND - continued NONRECURRING ACTIVITY Revenues Grant Proceeds (Comp Plan amendment)425,0000425,000 Total Nonrecurring Revenues425,0000425,000 Expenditures General Government - IT capital replacements40,000040,000 Communications (supplies for City events)026,50026,500 Public Safety (police vehicle replacements)544,0000544,000 Public Safety (vehicles for new officers)307,0000307,000 Engineering (Parking Analysis) 0100,000100,000 Facilities (CenterPlace repairs & improvements)30,000030,000 Facilities (portable heating/AC units)18,000018,000 Facilities (PCB boards for City Hall HVAC)10,000010,000 Planning (Comp Plan Update)425,00075,000500,000 Parks & Rec (audio/visual refresh for Great Room)80,000080,000 IT Software Capital Costs095,00095,000 CLFR Related Project Expenditures0670,400670,400 Capital Equipment (drone)035,00035,000 Transfers out - #501 047,00047,000 Transfers out - #503 (Public Safety Equip Replc)652,8310652,831 Total Nonrecurring Expenditures2,106,8311,048,9003,155,731 Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(1,681,831)(1,048,900)(2,730,731) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(1,563,018)(1,047,300)(2,610,318) Beginning unrestricted fund balance45,235,66145,235,661 Ending unrestricted fund balance43,672,64342,625,343 Fund balance as a percent of recurring expenditures63.79%62.50% Page 2 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended SPECIAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY Revenues Utility Tax960,0000960,000 Motor Vehicle Fuel (Gas) Tax2,011,50002,011,500 Multimodal Transportation Revenue137,8000137,800 Right-of-Way Maintenance Fee110,0000110,000 Solid Waste Road Wear Fee 1,900,00001,900,000 Traffic Infractions0750,000750,000 Investment Interest120,0000120,000 Miscellaneous20,000020,000 Transfer in - #1111,800,00001,800,000 Transfer in - #301254,3000254,300 Transfer in - #302254,3000254,300 Total Recurring Revenues7,567,900750,0008,317,900 Expenditures Street Department2,956,04002,956,040 Street Administration82,672082,672 Winter Operations1,734,58301,734,583 Bridge Program126,5530126,553 Traffic Program2,667,899162,0672,829,966 Total Recurring Expenditures7,567,747162,0677,729,814 Recurring Revenues Over (Under) Recurring Expenditures153587,933588,086 NONRECURRING ACTIVITY Revenues Transfers in - #3121,750,00001,750,000 Total Nonrecurring Revenues1,750,00001,750,000 Expenditures Capital Equipment Replacement Programs135,0000135,000 Local Street Program1,750,00001,750,000 Total Nonrecurring Expenditures1,885,00001,885,000 Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(135,000)0(135,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(134,847)587,933453,086 Beginning unrestricted fund balance7,977,7237,977,723 Ending unrestricted fund balance7,842,8768,430,809 Page 3 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended SPECIAL REVENUE FUNDS - continued #103 - PATHS & TRAILS FUND Revenues Motor Vehicle Fuel (Gas) Tax8,50008,500 Investment Interest2,00002,000 Total revenues10,500010,500 Expenditures Transfers out 000 Total expenditures000 Revenues over (under) expenditures10,50010,500 Beginning fund balance69,20669,206 Ending fund balance79,70679,706 #104 - HOTEL / MOTEL TAX - TOURISM FACILITIES FUND Revenues Hotel/Motel Tax590,0000590,000 Investment Interest 65,000065,000 Transfers in - #1050447,000447,000 Total revenues655,000447,0001,102,000 Expenditures Transfers out - #303 (Sullivan Improvements) 01,000,0001,000,000 Total expenditures01,000,0001,000,000 Revenues over (under) expenditures655,000102,000 Beginning fund balance662,791662,791 Ending fund balance1,317,791764,791 #105 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax900,0000900,000 Investment Interest 25,000025,000 Total revenues925,0000925,000 Expenditures Transfers out - #001287,0000287,000 Transfers out - #1040447,000447,000 Tourism Promotion673,000(447,000)226,000 Total expenditures960,0000960,000 Revenues over (under) expenditures(35,000)(35,000) Beginning fund balance228,441228,441 Ending fund balance193,441193,441 Page 4 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended SPECIAL REVENUE FUNDS - continued #106 - SOLID WASTE FUND Revenues Solid Waste Administrative Fee250,0000250,000 Grant Proceeds000 Investment Interest 56,000056,000 Total revenues306,0000306,000 Expenditures Wages / Benefits / Payroll Taxes160,2010160,201 Education/Contract Admin70,000070,000 Total expenditures230,2010230,201 Revenues over (under) expenditures75,79975,799 Beginning fund balance1,243,2171,243,217 Ending fund balance1,319,0161,319,016 #107 - PEG FUND Revenues Comcast PEG contribution50,000050,000 Investment Interest 8,00008,000 Total revenues58,000058,000 Expenditures PEG Reimbursement - CMTV39,500039,500 Capital Outlay33,500033,500 Total expenditures73,000073,000 Revenues over (under) expenditures(15,000)(15,000) Beginning fund balance312,183312,183 Ending fund balance297,183297,183 #108 - AFFORDABLE & SUPPORTIVE HOUSING SALES TAX FUND Revenues Affordable & Supportive Housing Sales Tax193,0000193,000 Grant Proceeds (CHIP Grant) 02,350,0002,350,000 Investment Interest30,000030,000 Total revenues223,0002,350,0002,573,000 Expenditures Grant Passthroughs (CHIP Grants) 02,350,0002,350,000 Total expenditures02,350,0002,350,000 Revenues over (under) expenditures223,000223,000 Beginning fund balance1,275,7341,275,734 Ending fund balance1,498,7341,498,734 Page 5 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended SPECIAL REVENUE FUNDS - continued #109 - TOURISM PROMOTION AREA FUND Revenues Tourism Promotion Area Fee1,300,00001,300,000 Investment Interest30,000030,000 Total revenues1,330,00001,330,000 Expenditures Professional Services1,775,00001,775,000 Total expenditures1,775,00001,775,000 Revenues over (under) expenditures(445,000)(445,000) Beginning fund balance892,321892,321 Ending fund balance447,321447,321 #110 - HOMELESS HOUSING PROGRAM FUND Revenues Recording Fees365,00035,000400,000 Grant Proceeds0180,500180,500 Investment Interest7,00007,000 Total revenues372,000215,500587,500 Expenditures Homeless Outreach0300,000300,000 Transfers out - #001380,000(344,000)36,000 Total expenditures380,000(44,000)336,000 Revenues over (under) expenditures(8,000)251,500 Beginning fund balance580,917580,917 Ending fund balance572,917832,417 #111 - TRANSPORTATION BENEFIT DISTRICT FUND Revenues Vehicle License Fees1,800,00001,800,000 Total revenues1,800,00001,800,000 Expenditures Transfers out - #1011,800,00001,800,000 Total expenditures1,800,00001,800,000 Revenues over (under) expenditures00 Beginning fund balance36,64136,641 Ending fund balance36,64136,641 Page 6 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended SPECIAL REVENUE FUNDS - continued #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest000 Miscellaneous000 Total revenues000 Expenditures Operations000 Total expenditures000 Revenues over (under) expenditures00 Beginning fund balance300,000300,000 Ending fund balance300,000300,000 #121 - SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest285,4000285,400 Transfers in - #312 000 Total revenues285,4000285,400 Expenditures Operations000 Total expenditures000 Revenues over (under) expenditures285,400285,400 Beginning fund balance6,621,3956,621,395 Ending fund balance6,906,7956,906,795 #122 - WINTER WEATHER RESERVE FUND Revenues Investment Interest24,800024,800 Transfers in - #001000 Total revenues24,800024,800 Expenditures Street maintenance expenditures500,0000500,000 Transfers out - #101000 Total expenditures500,0000500,000 Revenues over (under) expenditures(475,200)(475,200) Beginning fund balance593,683593,683 Ending fund balance118,483118,483 Page 7 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended DEBT SERVICE FUNDS #204 - LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District590,8000590,800 Transfers in - #001398,7500398,750 Total revenues989,5500989,550 Expenditures Debt Service Payments - CenterPlace590,8000590,800 Debt Service Payments - City Hall398,7500398,750 Total expenditures989,5500989,550 Revenues over (under) expenditures00 Beginning fund balance00 Ending fund balance00 CAPITAL PROJECTS FUNDS #301 - REET 1 CAPITAL PROJECTS FUND Revenues REET 1 - Taxes1,500,00001,500,000 Investment Interest275,0000275,000 Total revenues1,775,00001,775,000 Expenditures Transfers out - #101254,3000254,300 Transfers out - #303474,6830474,683 Transfers out - #311 (pavement preservation)1,372,15001,372,150 Transfers out - #314289,3800289,380 Total expenditures2,390,51302,390,513 Revenues over (under) expenditures(615,513)(615,513) Beginning fund balance7,389,1977,389,197 Ending fund balance6,773,6846,773,684 Page 8 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended CAPITAL PROJECTS FUNDS - continued #302 - REET 2 CAPITAL PROJECTS FUND Revenues REET 2 - Taxes1,500,00001,500,000 Investment Interest275,0000275,000 Total revenues1,775,00001,775,000 Expenditures Transfers out - #101254,3000254,300 Transfers out - #3031,941,14701,941,147 Transfers out - #311 (pavement preservation) 1,372,15001,372,150 Transfers out - #314000 Total expenditures3,567,59703,567,597 Revenues over (under) expenditures(1,792,597)(1,792,597) Beginning fund balance6,741,2916,741,291 Ending fund balance4,948,6944,948,694 #303 - STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds6,180,02506,180,025 Developer150,0000150,000 Transfers in - #10401,000,0001,000,000 Transfers in - #301474,6830474,683 Transfers in - #3021,941,14701,941,147 Transfers in - #3120800,000800,000 Transfers in - #31550,000050,000 Total revenues8,795,8551,800,00010,595,855 Expenditures Street Construction/Reconstruction8,795,8551,800,00010,595,855 Total expenditures8,795,8551,800,00010,595,855 Revenues over (under) expenditures00 Beginning fund balance2,014,8562,014,856 Ending fund balance2,014,8562,014,856 Page 9 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended CAPITAL PROJECTS FUNDS - continued #309 - PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds000 Developer Contributions000 Transfers in - #312000 Total revenues000 Expenditures Park Capital Projects83,634083,634 Total expenditures83,634083,634 Revenues over (under) expenditures(83,634)(83,634) Beginning fund balance503,979503,979 Ending fund balance420,345420,345 #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Judgments & Settlement000 Transfers in - #001000 Investment Interest 20,000020,000 Total revenues20,000020,000 Expenditures Transfer out - #001000 Total expenditures000 Revenues over (under) expenditures20,00020,000 Beginning fund balance14,182,80614,182,806 Ending fund balance14,202,80614,202,806 #311 - PAVEMENT PRESERVATION Revenues Transfers in - #001000 Transfers in - #3011,372,15001,372,150 Transfers in - #3021,372,15001,372,150 Transfers in - #3121,042,42101,042,421 Grant Proceeds9,734,12409,734,124 Total revenues13,520,845013,520,845 Expenditures Pavement preservation13,865,875013,865,875 Pre-project GeoTech50,000050,000 Total expenditures13,915,875013,915,875 Revenues over (under) expenditures(395,030)(395,030) Beginning fund balance4,113,7704,113,770 Ending fund balance3,718,7403,718,740 Page 10 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended CAPITAL PROJECTS FUNDS - continued #312 - CAPITAL RESERVE FUND Revenues Transfers in - #001 ('23 fund bal >50%)000 Grant Proceeds000 Investment Interest 700,0000700,000 Total revenues700,0000700,000 Expenditures Transfers out - #101 (Local Street Program) 1,750,0001,750,000 Transfers out - #303 (Sullivan Improvements)0800,000800,000 Transfers out - #311 (Pavement Preservation)1,042,4211,042,421 Transfers out - #314 (Pines Rd Underpass) 361,857361,857 Total expenditures3,154,278800,0003,954,278 Revenues over (under) expenditures(2,454,278)(3,254,278) Beginning fund balance9,811,6179,811,617 Ending fund balance7,357,3396,557,339 #314 - RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds17,354,717017,354,717 Transfers in #301289,3800289,380 Transfers in #302000 Transfers in #312361,8570361,857 Transfers in #315258,8000258,800 Total revenues18,264,754018,264,754 Expenditures Railroad Grade Separation Projects18,264,754018,264,754 Total expenditures18,264,754018,264,754 Revenues over (under) expenditures00 Beginning fund balance426,022426,022 Ending fund balance426,022426,022 Page 11 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended CAPITAL PROJECTS FUNDS - continued #315 - TRANSPORTATION IMPACT FEES FUND Revenues Transportation Impact Fees400,0000400,000 Investment Interest 42,000042,000 Total revenues442,0000442,000 Expenditures Transfers out - #30350,000050,000 Transfers out - #314258,8000258,800 Total expenditures308,8000308,800 Revenues over (under) expenditures133,200133,200 Beginning fund balance1,960,5151,960,515 Ending fund balance2,093,7152,093,715 #316 - ECONOMIC DEVELOPMENT CAPITAL PROJECTS FUND Revenues Transfer in - #104000 Total revenues000 Expenditures Cross Country Course Project000 Total expenditures000 Revenues over (under) expenditures00 Beginning fund balance29,21029,210 Ending fund balance29,21029,210 Page 12 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees6,170,00006,170,000 Investment Interest173,0000173,000 Miscellaneous000 Total Recurring Revenues6,343,00006,343,000 Expenditures Wages / Benefits / Payroll Taxes1,662,78401,662,784 Supplies58,000058,000 Services & Charges2,360,19302,360,193 Intergovernmental Payments91,310091,310 Vehicle rentals - #50124,125024,125 Total Recurring Expenditures4,196,41204,196,412 Recurring Revenues Over (Under) Recurring Expenditures2,146,58802,146,588 NONRECURRING ACTIVITY Revenues Grant Proceeds000 Miscellaneous000 Total Nonrecurring Revenues000 Expenditures Capital - various projects4,500,00004,500,000 Watershed studies100,0000100,000 Asset management software system000 Total Nonrecurring Expenditures4,600,00004,600,000 Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(4,600,000)0(4,600,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(2,453,412)0(2,453,412) Beginning working capital8,580,1988,580,198 Ending working capital6,126,7866,126,786 Page 13 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended ENTERPRISE FUNDS - continued #403 - AQUIFER PROTECTION AREA Revenues Spokane County420,0000420,000 Grant Proceeds000 Investment Interest30,000030,000 Total revenues450,0000450,000 Expenditures Capital - various projects000 Effectiveness study000 Total expenditures000 Revenues over (under) expenditures450,000450,000 Beginning working capital1,918,9231,918,923 Ending working capital2,368,9232,368,923 INTERNAL SERVICE FUNDS #501 - ER&R FUND Revenues Vehicle rentals - #00183,850083,850 Vehicle rentals - #10178,575078,575 Vehicle rentals - #101 (plow replace.)300,0000300,000 Vehicle rentals - #40224,125024,125 Transfers in - #001 (IT equipment reserve)92,500092,500 Transfers in - #001 (new vehicles)047,00047,000 Investment Interest47,000047,000 Total revenues626,05047,000673,050 Expenditures Small tools & minor equipment10,000010,000 Vehicle purchases50,000105,500155,500 Snow plow purchase270,0000270,000 Total expenditures330,000105,500435,500 Revenues over (under) expenditures296,050237,550 Beginning working capital1,236,7501,236,750 Ending working capital1,532,8001,474,300 Page 14 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended INTERNAL SERVICE FUNDS - continued #502 - RISK MANAGEMENT FUND Revenues Investment Interest6,00006,000 Transfers in - #0011,100,00001,100,000 Total revenues1,106,00001,106,000 Expenditures Auto & Property Insurance1,100,00001,100,000 Miscellaneous000 Total expenditures1,100,00001,100,000 Revenues over (under) expenditures6,0006,000 Beginning fund balance361,881361,881 Ending fund balance367,881367,881 #503 - PUBLIC SAFETY EQUIPMENT REPLACEMENT FUND Revenues Transfers in - #001 (replacement amts) 652,8310652,831 Transfers in - #001 (transfer for equipment for future additional officers) 000 Total revenues652,8310652,831 Expenditures Equipment Purchases350,0000350,000 Total expenditures350,0000350,000 Revenues over (under) expenditures302,831302,831 Beginning fund balance2,004,5862,004,586 Ending fund balance2,307,4172,307,417 Page 15 of 22 P:\\Finance\\Budgets\\2026 Budget\\Budget Amendment\\Budget Amendment #1\\2026 05 05 Admin\\2026 Budget Summary No1 v1 CITY OF SPOKANE VALLEY, WA 5/5/2026 2026 Budget Amendment 2026 AsProposedAs AdoptedAmendmentAmended FIDUCIARY FUNDS #632 - PASSTHROUGH FEES & TAXES FUND Revenues Fees & taxes collected for other governments620,0000620,000 Total revenues620,0000620,000 Expenditures Fees & taxes remitted to other governments620,0000620,000 Total expenditures620,0000620,000 Revenues over (under) expenditures00 Beginning fund balance00 Ending fund balance00 TOTAL OF ALL FUNDS Total of Revenues for all Funds140,399,7855,348,800145,748,585 Total of Expenditures for all Funds148,412,5346,960,167155,372,701 Total grant revenues (included in total revenues)34,130,3662,613,80036,744,166 Total Capital expenditures (included in total expenditures)47,901,6182,000,50049,902,118 Page 16 of 22 Public Works Department 10210 E Sprague Avenue Spokane Valley WA 99206 Phone: (509) 720-5000 Fax: (509) 720-5075 www.spokanevalleywa.gov Memorandum Date: April 29, 2026 To: Chelsie Walls, Finance Director From: Adam Jackson, Engineering Manager Re: 2026 Drone Purchase Request cĳ϶9İđňŹĳđ϶А϶cđŵđЪŹ϶Ƃİđ϶ċŵŗŏđ϶ŵđŴƇest for the 2026 budget amendment. REQUEST: $35,000 budget amendment for the purchase of a new drone and its supporting systems. BACKGROUND: The Washington State Department of Transportation (WSDOT) issued a Local Programs Bulletin (LPB-2026-02) on January 14, 2026, regarding the prohibition of Federal funds for certain Unmanned Aircraft Systems (UAS); in other words: drones and their supporting software and hardware. The prohibition pertains Ƃŗ϶Ĩŗŵđĳĩŏ϶đŏƂĳƂĳđŹϽ϶ŹŲđąĳĨĳąêňňƢ϶Ƃİđ϶¡đŗŲňđЪŹ϶ Republic of China. This prohibition took effect December 22, 2025. This prohibition impacts local governments though their acceptance of federal funds. A local government is potentially at risk of losing its Federal funds if it is found to be operating a prohibited drone. Spokane Valley owns one drone, the DJI Mavic 3T Enterprise. This drone is prohibited. City staff have ceased drone operations to maintain compliance with the law. PROPOSAL: The WSDOT bulletin provided a list of approved drone systems. Staff have evaluated the approved list and request to purchase a preferred replacement drone, the Skydio X10. Although unlikely, staff would reserve the right to deviate from the proposed drone model if the procurement process identifies a more preferred option. BUDGET IMPACTS: The approximate total purchase price for the drone system is $30,000, see attached cost estimate. Additionally, each year requires an annual licensing, software, and maintenance ąŗŹƂ϶ŗĨ϶êŲŲŵŗơĳŎêƂđňƢ϶ѦʹϽͬͬͬϼ϶fƂЪŹ϶ŵđêŹŗŏêăňđ to assume that some of the maintenance ąŗŹƂŹ϶ƜŗŏЪƂ϶ăđ϶ŵđêňĳƬđċ϶ĳŏ϶ͮͬͮͲϽ϶Źŗ϶Ƃİđ϶ͮͬͮͲ϶price is proposed for $35,000. For future budgets, subsequent years will require $8,000. °İđ϶9ĳƂƢЪŹ϶ąƇŵŵđŏƂϽ϶ŲŵŗİĳăĳƂđċ϶ċŵŗŏđ϶İêŹ϶ê϶resale value between $8,000 and $10,000. The 2026 City budget has $2,000 for drone maintenance. The 2026 maintenance has not been ŲđŵĨŗŵŎđċ϶êŏċ϶fЪŎ϶ƇŏŹƇŵđ϶ĳĨ϶ĳƂЪŹ necessary to complete if weЪŵđ϶ĩŗĳŏĩ϶Ƃŗ϶ŹƂŗŲ϶ƇŹĳŏĩ϶ĳƂϼ϶϶ ATTACHMENTS: Cost Estimate for Skydio X10 Kit (excluding recurring annual costs) WSDOT LPB-2026-02 HQ Local Programs Federal Restrictions on Foreign Drones LPB-2026-02 Page 1 of 3 HQ LP Project Development HQ Local Programs Date: January 14, 2026 Purpose The purpose of this bulletin is to provide guidance for the restrictions on purchasing, maintaining or operation of foreign drones. Background The American Security Drone Act instructs the Director of the Office of Management and Budget (0MB) to establish government-wide policy for the procurement of unmanned aircraft systems (UAS), also known as drones, in coordination with the Secretary of Homeland Security, the Secretary of Transportation, and the Attorney General, and in consultation with the Director of the National Institute of Standards and Technology (NIST). Guidance Effective December 22, 2025, the American Security Drone Act of 2023 (ASDA) and OMB Memorandum M-26-02 strictly prohibit the use of federal funds for UAS manufactured by covered foreign entities. Local Agencies may no longer use FHWA funds (including grants, loans, or cooperative agreements) to procure, operate, or maintain "covered UAS." Covered UAS includes any aircraft, flight controller, camera, or ground control station supplied by a manufacturer that is based in, or subject to the control of, a foreign adversary country, specifically the People's Republic of China. 9ƨǒźƦƒĻƓƷ ƌźƭƷĻķ ƚƓ ƷŷĻ ͻBlue Listͼ ƦǒĬƌźƭŷĻķ ĬǤ 5ĻŅĻƓƭĻ /ƚƓƷƩğĭƷ ağƓğŭĻƒĻƓƷ !ŭĻƓĭǤ źƭ źƓ ĭƚƒƦƌźğƓĭĻ by default. Equipment not listed on the Blue List may be compliant, however, a UAS operator will need manufacturer certifications of compliance, for the breakdown of critical UAS components and a cyber security assessment. There is no form or template for certification or assessments available at the time of this bulletin. The use of UAS are also prohibited by consultants and contractors performing work on federally funded projects. A special contract provision for the Construction Phase will be required in Federally funded Contracts (See Appendix A). This bulletin will be updated when more information becomes available. Implementation Plan 1.Stop Procurements: Ensure no pending orders for this equipment will be paid for with federal funds. 2.Cease Operations: If your existing fleet includes these covered UAS, you must cease their operation, maintenance, or data processing on any FHWA funded project or grant. HQ Local Programs Federal Restrictions on Foreign Drones LPB-2026-02 Page 2 of 3 HQ LP Project Development HQ Local Programs Date: January 14, 2026 3.Segregate Assets: FHWA recommends physically quarantining these devices to prevent accidental use on federally funded projects. 4.Project GSP: All Federally funded projects will insert special provision APWA 1-07.1(6), Unmanned Aircraft Systems. Resources Local Agency Guidelines (Manuals | WSDOT) OMB M-26-02 Ensuring Government Use of Secure Unmanned Aircraft Systems and Supporting Defense Contract Management Agency at https://bluelist.appsplatformportals.us/Cleared-List/ !ƦƦĻƓķźǣ ! Α bĻǞ !t! D{tͲ ƷźƷƌĻķ Unmanned Aircraft Systems (UAS) Contact Information Michele L. Britton, P.E. Assistant State Local Programs Engineer Phone: (360) 705-7383 (Desk) Email: Michele.Britton@wsdot.wa.gov HQ Local Programs Federal Restrictions on Foreign Drones LPB-2026-02 Page 3 of 3 HQ LP Project Development HQ Local Programs Date: January 14, 2026 1-07.1 Laws to be observed (NEW DATE, APWA GSP) Add the following new section: 1-07.1(6) Unmanned Aircraft Systems (UAS) The procurement and/or use of any drone (UAS) to complete any primary or supporting tasks within the scope of this Contract will comply with the following directives: National Defense Authorization Act (NDAA) – American Security Drone Act of 2023 (ASDA, Pub. L. No. 118-31). Office of Management and Budget Memorandum M-26-02 – Restrictions on using federal funds to purchase or operate prohibited foreign UAS. Federal Acquisition Regulation Clause 52.240-1 – Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities. Contractors, subcontractors, and lower tier subcontractors may not procure or operate prohibited UAS/drones manufactured or assembled by “covered foreign entities” as defined in the Federal Acquisition Security Council (FASC) in the performance of this Contract. Appendix A RV64865 Chelsie Walls From:Steve Roberge Sent:Monday, April 27, 2026 11:52 AM To:Chelsie Walls Cc:Erik Lamb; Mike Basinger; Kelly Konkright; Tony Beattie Subject: Supplemental Budget Request Attachments:Re: Comp Plan amendment for additional code development work attached Hi Chelsie, °İĳŹ϶ŵđŴƇđŹƂ϶ĳŹ϶Ĩŗŵ϶ѦͳͱϽͬͬͬϼ϶϶fЪŎ϶İêppy to streamline or expand the explanations below but wanted to give you enough background to understand. There are two pieces to the request and additional documentation is attached: 1) Supplemental Code Updates: $41,000 Since the Commerce grants & consultant contract were implemented, additional legislation has passed the State Legislature. Several of these pieces of legislation must be implemented shortly after our Comp Plan and Development Regulations must be adopted. (Comp Plan and Dev Regs must be adopted by end of 2026 and other due dates include end of 01/27 & 7/27.) It is not only more eicient to do these updates with the other updates already underway with the Comp Plan, but it also helps avoid confusion for the public and developers. First many of the changes supplement Comp Plan required updates that have been talked about through the process and second, it creates a more stable development environment where neighbors and developers know what to expect. 2) Adequate Provisions analysis & design: $34,000 We are required to provide capacity for aordable housing at all income levels. Following a recent Growth Management Hearing Board (GMHB) decision, which occurred after the initial Commerce grants and consultant contracts, Commerce has updated its guidelines. These updates move beyond merely encouraging speci ǎ c housing types to requiring the identi ǎ cation of local funding gaps and de ǎ ning when actions must be taken to ensure adequate housing provision. We have identi ǎ đċ϶ƂİŗŹđ϶ЧêċđŴƇêƂđ϶ŲŵŗƚĳŹĳŗŏŹШ϶ăƇƂ϶ŏđđċ϶Ƃŗ϶ċŗ additional analysis and program design to ensure they will work well without unintended consequences. To maintain compliance, they need to be in place with our Comp Plan and Development regulations by end of 2026. I have attached an email with draft scope of work. Please let me know if I can clarify or provide additional info. Thank you, Steve Steve Roberge // Planning Manager 10210 E. Sprague Ave // Spokane Valley, WA 99206 Phone: 509-720-5337 // sroberge@Spokanevalleywa.gov This email and any attachments may be subject to disclosure pursuant to Washington State Public Record Act, chapter 42.56 RCW. 1 2 Chelsie Walls From:Chad Knodel Sent:Wednesday, April 8, 2026 3:57 PM To:Chelsie Walls Cc:Erik Lamb Subject: SharePoint budget amendment Importance:High Chelsie, Regarding working with a vendor to assist us with implemđŏƂĳŏĩ϶¨İêŵđ¡ŗĳŏƂ϶ƜĳƂİĳŏ϶Ƃİđ϶9ĳƂƢϽ϶ƜđЪŵđ϶ňŗŗńĳŏĩ϶êƂ϶êăŗƇƂ϶ $95,000 (after tax) as a budget amendment for 2026. The City would greatly bene ǎ t from the implementation of Microsoft SharePoint. SharePoint is included in our annual Microsoft licensing, so there is no additional recurring cost for software. The bene ǎ ts of collaboration, accessibility, and modern document management would serve the City well. We found a company on the MRSC ƚđŏċŗŵ϶ňĳŹƂ϶ƂİêƂ϶ƜŗƇňċ϶ƂŵêŏŹĳƂĳŗŏ϶ƂƜŗ϶ċđŲêŵƂŎđŏƂŹЪ϶ċŗąƇments and give us the knowledge and training to bring other departments on internally. This one-time cost of education, best practices and data governance policy improvement prevents project scope creep and has explicitly de ǎ ned deliverables. Collaboration Bene ǎ ts: Eêąİ϶ąŗŏƂŵêąƂ϶ƂİêƂ϶ĳŹ϶ŵđƚĳđƜđċ϶ăƢ϶Ƃİđ϶9ĳƂƢ϶ƂƂŗŵŏđƢЪŹ϶ŗice would allow collaboration between drafts. Draft versions of documents would no longer be emailed, stored, or saved (also reducing records management workload). Sta could co-author a document in real-time. Because drafts would not be emailed back and forth, the storage of records that have no retention value can be handled accordingly. In 2025, the City has over 200 contracts that were reviewed and collaborated on. Each one of those contracts could have bene ǎ ted from the use of SharePoint. As technology has improved, more departments have been requesting this technology to collaborate with outside agencies. Most recently, the deƚđňŗŲŎđŏƂ϶ŗĨ϶Ƃİđ϶9ĳƂƢЪŹ϶ąŗŎŲŵđİđŏŹĳƚđ϶Ųňêŏ϶ƜŗƇňċ϶İêƚđ϶ been an excellent use of this technology. Accessibility: Having accessible documents is important as the City works to respond to the expanding number of public records requests. The ability to quickly identify documents related to a request would allow faster discovery of records. Additionally, with the number of outside agencies working in tandem with our sta, allowing access to appropriate records in real-time would be a huge win. Providing anywhere, anytime access is a tremendous advantage. To do this securely and with an audit trail improves our data governance goals. Document Management: Search and discovery utilizing SharePoint is dramatically better than traditional ǎ le storage methods. Finding records quickly and having them stored in a standardized method allows for faster discovery. File management is Ŏŗŵđ϶ŹƂŵƇąƂƇŵđċ϶ąŗŎŲêŵđċ϶Ƃŗ϶êŏ϶ĳŏċĳƚĳċƇêňЪŹ϶ĳċea of how the structure should be developed. Open to feedback. Chad Knodel // IT Manager 10210 E. Sprague Ave // Spokane Valley, WA 99206 509-720-5055 // cknodel@SpokaneValleyWA.gov 1 This email and any attachments may be subject to disclosure pursuant to Washington StateÓs Public Record Act, chapter 42.56 RCW. 2 Community and Economic Development Department Mike Basinger, CED Director 10210 E Sprague Avenue | Spokane Valley WA 99206 Phone: (509) 720-5000 | Fax: (509) 720-5075 | www.spokanevalleywa.gov aĻƒƚƩğƓķǒƒ To: Chelsie Taylor, Finance Director From: Mike Basinger, Economic Development Director & Gloria Mantz, City Services Administrator Date: April 20, 2026 Re: Fleet Replacement Request: Ford F-250 Super Duty for Abatement Operations & Ford Maverick for Facilities This memorandum is to formally request the procurement of a Ford F-250 Super Duty (Crew Cab) equipped with a liftgate and Ford Maverick. /ƚķĻ 9ƓŅƚƩĭĻƒĻƓƷ wĻƨǒĻƭƷ The F-250 is essential to scaling our municipal abatement operations and supporting community-based workforce re-entry programs. The vehicle will replace a fully depreciated mid-size truck from our current fleet. Our current mid-size truck lacks the necessary payload and towing capacity for abatement demands. Upgrading to a 3/4-ton platform provides three primary advantages: Provides the necessary torque and braking capacity to safely haul our existing dump trailer fully loaded, a task that currently exceeds the safety ratings of our mid-size truck. It will support the opportunity to partner with local non-profit organizations to provide work opportunities for individuals re-entering the workforce. The crew cab configuration will allow abatement crews transportation to job sites. The addition of a liftgate will allow code enforcement staff to efficiently pick up heavy illegally dumped items directly from city streets. This reduces the risk of workplace injuries and allows staff to safely remove debris from our Right-of-Way (ROW). While final pricing will depend on municipal fleet bidding. The current estimate for a 2026 Ford F-250 Super Duty (Crew Cab) with accessories is $68,500 (see itemized details below). Vehicle Base MSRP (Crew Cab XL/XLT) $60,000 Tommy Gate G2 Series Liftgate $6,500 Headache rack, light and truck box $2,000 The purchase of Ford F-250 Super Duty (Crew Cab) will have long-term savings by internalizing hauling costs and reducing our dependence on expensive third-party contractors. By replacing a fully depreciated assets with a multi-purpose heavy-duty vehicle, we will improve response times for abatements, safely remove debris from our ROW and support purpose-driven work. CğĭźƌźƷźĻƭ wĻƨǒĻƭƷ The Facilities Manager position was created in 2025 by converting a vacant position. An assigned vehicle is necessary for the Facilities Manager to travel to City facilities and bring materials/tools to support the Facilities team and address maintenance and repairs. The Facilities Manager has been using a pool vehicle and his own personal vehicle so far. The cost to purchase a Ford Maverick is approximately $37,000. This vehicle will replace a fully depreciated mid-size truck from our current fleet. .ǒķŭĻƷ LƒƦğĭƷ $58,500 has been set aside from the vehicle lease program for the two depreciated mid-size code enforcement vehicles. A supplemental allocation of $47,000 is required to purchase the Ford F-250 Super Duty (Crew Cab) and the Ford Maverick.