2003, 07-01 Special Joint Spokane/BOCC Meeting2. Public Comments
3. Adjournment
AGENDA
SPECIAL JOINT MEETING
HOSTED BY
SPOKANE PUBLIC FACILITIES DISTRICT
BOARD OF DIRECTORS
with
CITY OF SPOKANE
and
SPOKANE COUNTY
and
SPOKANE VALLEY CITY COUNCIL
Spokane Arena
720 W. Mallon, Champions Room, 720 Building
Spokane, WA
Tuesday, July 1, 2003 1:30 p.m.
1. Public Meeting on Regional Projects Financial Plan
a. Regional Project Financial Plan
b. Interlocal Agreement
c. Resolution 03 -03
d. Miscellaneous
4. DistrictJArena
A. Districtl /Arena Revenue — June
13. Vari -Rise Seating System Repair
C. Interim Activities/Letter of Agreement
D. Miscellaneous
Regional Projects
A. GC/CM Recommendation
B. Committee Reports
a. Operations Management (6/] 2)
b. Sales and Marketing (6/13)
c. Communication (711)
C. Miscellaneous
Board of Directors - Spokane Public Facilities District
TENTATIVE AGENDA
REGULAR MEETING
12:00 PM Lunch
12:30 — 1:30 PM Regular Session
1:30 PM Champions -
Tuesday .duly 1, 201)3
1. Ca]1 to Order the 395th Meeting of the Spokane Public Facilities District
2. 12:30 PM — (Board Room) Guest introduction /Attendance.
3. Consent Agenda
hero included in the Consent Agenda oo a klen lied by uxr 425te and a items of a routine nature. The Strata
received background information relaahie to these ite and normally will deal with them Iviilr one motion unless a
member requests Mar on ireru be cL ttmed.separeteiy, The Consent Agenda is rriiltzedto increase efficiency.
* Approval of Minutes from June 17, 2003
* Approval of NJinutes from June 24, 2003
' Approval of Lukens & LnnisBilling- May
* Approval of Foster Pepper Billing - April
6. 1:30 PM Champions — Public Meeting nn Regional Projects Financial Plan
A Regional Project Financial P]ai
B, lnterlocal Agreement
C. Resolution 03 -03
D. Miscellaneous
7. Public Comments
Anyone iiiishlrtg to speak before to Bard, either as ara individual or as a member of a group may do so a1 thtis time,
Individual desiring to speak shall give their name, address, and the group they represent, fiauy. A speaker e r limited to three
rrrinktu unless granted an extension of time, The hoard will take action only on agenda items, not on •errerol comments_
8. Adjournment
Upcoming Meeting Schedule
July 8 . 3:00 PM
July 15 (4t 12:00 PM
July 2( 3:00PM
CITY HALL AT REDWOOD PLAZA
11707 East Sprague Avenue, First Flour
Spokane Valley, Washington
Tuesday, July 1, 2003 6:00 p.m.
COUNCIL REQUESTS ALL ELECTRONIC DEVICES BE TURNED OFF WHILE IN.4 TTEVDANCE AT THE COUNCIL MEETING
SUBJECT DISCUSSION LEADER ACTIVITY DISCUSSION GOAL
1. Administration
CITY OF SPOKANE VALLEY
CITY COUNCIL WORKSHEET — STUDY SESSION
NOTE: AT COUNCIL STUDY SESSIONS, THERE WILL RE NO PUBLIC COMMENTS, EXCEPT COUNCIL
RESERVES THE RIGHT TO REQUEST INFORMATION FROM THE PUBLIC AND STAFF AS APPROPRIATE
David Mercier
Employee introductions
(5 minutes)
Information
2. Parks & Rec Bill Hutsinpiller Discussion
3. Parks & Rec: Bill Hutsinpiller Discussion
4. Parks & Rec Bill Hutsinpiller Discussion
5. Public Works Dick Warren Di
6. Public Works Dick Warren Agenda July 8
7. Comm. Development Greg McCormick Proposed Affordable Housing Interlocal Agreement Agenda July 8
(5 minutes)
Proposed Parks Title Transfer Update
(10 minutes)
Proposed Parks & Recreation Maintenance
Agreement Update (10 minutes)
Parks Maintenance Report (handout at meeting)
(10 minutes)
Cost Comparison Wastewater Treatment
(20 minutes)
Sewer Extensions and Operation (STEP)
Agreement with Spokane County (15 minutes)
Study Session Agenda, July 1. 2003 Page 1 of 2
SUBJECT
DISCUSSION LEADER ACTIVITY
DISCUSSION GOAL
8. Police Department Cal Walker Proposed Alarm and Fee Collection Ordinance Agenda July 8
Discussion (10 minutes)
9. Legal Department Cary Driskell Columbia Fiber Agreement Discussion (10 minutes) Agenda July 8
10. Legal Department Cary Driskell Cable TV Advisory l3oard (10 minutes) Information
1 1. Administration Dave Mercier Ordinance Establishing Policy for Purchase of Agenda July 8
Goods, Services, etc. (15 minutes)
12. Administration Dave Mercier Ordinance Granting Contract Authority to Agenda July 8
City Manager (15 minutes)
13. Administration Dave Mercier Resolution Establishing Signature Limits Discussion
(10 minutes)
14. Administration Dave Mercier Council Check -in Procedures and Interactions Discussion /1nfarmatiort
(15 minutes)
15. Administration Dave Mercier City Manager Comments (5 minutes) Information
Emergency Mgmt Services Mtg July 21, 6:30 pm Co. Public Works Bldg.
(to be rescheduled to a Wednesday night)
Tentative Dates for Light Rail Project in Portland: July 24, 30 or 31st
Land Use Training Session July 31, 6 p.ni.
Study Session Agenda. July 1. 2003
Page 2 of Z
/
May 22, 2003
Mayor Mike DeVleming
City of Spokane Valley
11707 East Sprague Avenue, Suite 106
Spokane, Washington 99206
Re: Fasten :aim- Funding end Financing Meeting
Dear Mayor DeVleming.
VIA MAIL & EM.AIL
This letter is in follow up to the joint County /City meeting held May 5, 2003. At that
meeting County Utilities Director Bruce Rawls handed out a Wastewater Funding and
Financing Briefing 'Paper. An additional copy is enclosed with this letter. That paper
outlines the funding and financing sources used by the County to finance the wastewater.
collection system in the Valley. The paper was prepared at your request so the City
Council and City staff could he fully informed on this subject in preparation for a
subsequent joint County /City meeting to address this topic.
As you know, significant expenditures will be required to complete the wastewater
collection system in the Valley as well. as to provide new regional wastewater treatment
capacity. Pending and future decisions may have significant impacts on the rates and
• charges that are necessary to finance the completion of • the remaining projects. The
Board believes it is important to .insure. that decisions regarding the allocation of funding
and financing sources are made with a full base of knowledge regarding the possible
outcome of these decisions.
The Board proposes 'that a meeting be scheduled during the first 2..weeks of June t�
discuss funding and financing of the wastewater, collection system. This meeting would •
include the Spokane County Commissioners,. the City of Spokane Valley Mayor and
Council, and respective staffs. -
Mayor Mike DeVlemmg
May 22, 2003
Page 2
We request that your administrative representative coordinate with Linda Lcmley of our
office to schedule the meeting and set the agenda. Ms. Lemley can be reached by
telephone a•477 -2265. •
We look forward to this meeting and a productive discussion to make sure we are
coordinating effectively on this subject.
Sincerely,
PhiILLtP D. HARRIS, R S, Chair
Spokane County Board of Commissioners
Enc.: Wastewater Funding and Financing Briefing Paper
cc: City Council Members, City of Spokane' Valley
David Mercier, City Manager, City of .Spokane Valley
Bruce Rawls, Spokane County Utilities Director
INTRODUCTION .
Wastewater Funding and Financing
Briefing Paper
Presented to City of Spokane Valley
May 5, 2003
Prepared by: Bruce Rawls
The Spokane County Board of Commissioners scheduled a workshop on May 5, 2003
with the City Council to discuss wastewater funding and financing. However, Mayor
DeVleming requested that the agenda item be deleted from the agenda, and replaced with
a written briefing paper.
This briefing paper is intended to provide some background information to the City
Council regarding historical and future funding and financing considerations relevant to
completion of the sewer construction program for septic tank elimination, and to
construction of regional wastewater treatment capacity.
Funding and financing of the remaining wastewater improvements will include
significant policy decisions to be made by the elected officials of Spokane County and
the City of Spokane Valley.
SEPTIC TANK ELIMINATION PROGRAM OVERVIEW
For the past 20 years, Spokane County has been constructing sewers in the Spokane
Valley and north Spokane Unincorporated area. Significant areas have been completed. .
However, completion of the sewer program is still'far from completion, and an additional
$96 million is projected to complete the program inside of the City of Spokane Valley,
and $18 million in the unincorporated areas. Based on recent scheduling, it is anticipated
that the sewer program will be completed in year 2010.
In addition, over $100 million of expenditures are anticipated over the next 20 -years to
provide wastewater treatment capacity to the City of Spokane Valley and unincorporated
areas.
WASTEWATER RATES AND CHARGES
Spokane. County has implemented rates and charges to cover construction, operation, and
maintenance of sewers, pumping stations, interceptors, and treatment facilities.
Monthly Sewer Service Charges are billed to each customer to pay for the cost of
administering, operating and maintaining the wastewater system. Currently, the sewer
Wastewater Funding and Financing
service charges are $20.50 per month per single - family dwelling. Apartments,
commercial and manufactured home parks pay at a proportionate cost of service rate.
Wastewater Treatment Plant Charges (WWTP) are billed to each customer to pay for the
cost of upgrades at the City of Spokane Advanced Wastewater Treatment Plant
(SAWTP). Currently, the WWTP charge is $4.00 per month per single - family dwelling.
General Facilities Charges (GFC) are billed to each new customer when they connect to
the regional sewer system. The GFC is used to pay for major regional wastewater
facilities such as pumping stations, interceptor sewers, and wastewater treatment plant
capacity. Currently the GFC for a single family dwelling is $2,510, but is subsidized at
25 % down to $1,885.
Capital Facilities Rates (CFR) are billed to each new customer inside of a sewer project
implemented by Spokane County for the septic tank elimination program. The CFR.
covers the cost of installing the sewer system in the neighborhoods, and also includes the
GFC for each customer. The CFR for a single family dwelling in year 2003 is set at
$4,950. This rate includes the cost reduction from a Washington State Extended-Grant
and a 25 % subsidy from Spokane County. Prior to construction of the annual sewer
projects, Spokane County estimates the costs of construction and then deducts grant
monies, deducts subsidy monies, and estimates the cost per Equivalent Residential Unit
(ERU). The cost per ERU is set by the Board of County Commissioners to recover the
cost of the sewer program, and does not generate any surplus revenues.
HISTORICAL FUNDING SOURCES
In 1996, Spokane County secured an Extended Grant from the Washington State
Department of Ecology. The Extended Grant was for $75 million over 20 years for
construction of the septic tank elimination program. Currently, the County receives
$3.75 million per year, which is used to reduce the cost of the sewer construction
program that is allocated to parcels within that year's sewer program.
Historically, the Board of County Commissioners have allocated significant amounts of
the County's. Real- Estate Excise Tax ( REE T) revenues to payments on debt service for
the Valley Interceptor and the North Spokane interceptor. In the year 2002, debt service
payments in the amount of $1,202,000 were made from REET.revenues by Spokane
County.
In 1985, the voters of Spokane County approved an Aquifer Protection Area (APA) and
authorized Aquifer Protection Area Fees. The APA Fees are collected by Spokane
County and used for aquifer protection, aquifer monitoring, and sewer construction for
septic tank elimination. Approximately $1.8 million per year is collected for sewer
construction in the unincorporated areas, and is used to fund the subsidy of sewer
construction (currently at 25 %). An additional $500,000 is allocated to the City of
Spokane for their wastewater program.
Wastewater Funding :ind Financing
historically, since the mid- 1980's, Spokane County has allocated one - eighth of the sales
tax revenues collected by the County to the sewer'construction program. Prior to the
Spokane Valley Incorporation, revenues to the sewer program were approximately $3.6
million per year. Of this revenue, it was estimated that approximately $2.4 million per
year was generated within the City of Spokane Valley areas. The sales tax revenues were
used to fund the subsidy of sewer. construction (currently at 25 %).
FINANCIAL MODELING
There are 4 major elements to the Spokane County Financing program, including; (1)
Wastewater Operations and Maintenance, (2) Sewer Construction Program, (3) SAWTP
Upgrades, and (4) New regional treatment and major conveyance facilities. The attached
chart illustrates in a simplistic manner how the funding and financing model works for
Spokane County.
The financial model computes cost of service sewer service charges to cover the costs of
wastewater operations and maintenance. Reserves.are accumulated in this fund (Budget
Fund 401) to cover future replacement costs of infrastructure. This part of the model is
completely separate from the financial modeling for capital improvements.
It has been estimated that about $20 million.of upgrades are needed at the SAWTP to
maintain the County's current capacity allotment of 10 million gallons per day. The
financial model has analyzed revenues for the next 20 -years from the WWTP charges,
and projects excess revenues that would be . used to reduce the cost of newregional
wastewater treatment plant capacity.
When the County performed it's most recent financial planning, in 2001, it was
anticipated that sales tax revenues, APA fees, and REET revenues would continue
through the end of the sewer construction program. Further, it was assumed that sewer
construction subsidies would continue at 25% through the end of the program. Under
this scenario, a significant amount of excess revenues from sales tax and APA fees would
be available to use for reduction of the. cost of new regional wastewater treatment plant
capacity.
SEWER RESERVES FOR CAPITAL PROTECTS
Excess APA fees and sales tax revenues have been accumulated in fund reserves, and at
the end of year 2002 totaled approximately $27 million. In addition, approximately $3
million of reserves are in the WWTP fund, and $9.6 million in the GFC fund. These
reserves, along with future revenues from APA Fees, Sales Taxes, WWTP Charges, and
GFC's were used to project future rates and charges in the County's financial modeling.
Wastewater Funding and Financing
IMPACTS FROM REDUCED FUNDING SOURCES
The Spokane Valley Incorporation reduced the amount of REET revenues to Spokane
County by approximately $1.7 million per year, and reduced the amount of sales tax
revenue to the sewer program by about $2.4 million.
Spokane.County has requested that the City of Spokane Valle use their REET revenues
to pay the Valley Interceptor debt service to complete the final three $500,000 annual
payments, and that the 1/8 allocation of sales tax revenues .to the sewer program be
continued. Over the next 8 years, through completion of the sewer prograrri, these two
revenue sources would generate approximately $20 million that would be used for the
sewer program and regional wastewater treatment plant improvements.
In order to get an approximate idea of the impact of losing sales tax revenues and REET
revenues, Spokane County ran the financial model assuming no revenues from those .
sources. The result was that either the General Facilities Charge.would need to increase
by about $500, or the WWTP charge would need to'increase by about $7 per month.
This analysis will need to be refined once all of the finding, financing, and wastewater
cost issues are defined.
The interesting dilemma that the Utilities Division is contemplating at this time is that the
Board of County Commissioners have indicated a desire to continue some level of REST
and sales tax revenues.to the sewer program support wastewater improvements in the
unincorporated sewer service areas. If the City of Spokane Valley chooses to not allocate
REET and/or sales tax revenues to the sewer program, the result will likely be differential
rates for unincorporated customers compared City of Spokane Valley customers, and
significant increases in rates or charges for the City customers.
PROPOSED CHANGE_. TO GENERAL FACILITIES CHARGE SUBSIDY
Recently Utilities Division staff have recommended that the subsidy for General
Facilities Charges for new development be eliminated. When the_sewer program was
started in the 1980's, the subsidies were implemented to reduce the hardship on our
residents who were being asked to abandon their septic tank and connect to the new
sewer. Since new development does not abandon a septic tank, the subsidy of their GFC
does not seem consistent with the original intent for the sewer program. Elimination of
the GFC subsidy for new development would save about $400,000 per year of subsidy
monies that would be available to construct regional wastewater treatment facilities.
CONCLUSION
The funding and financing program for the sewer program and wastewater treatment
plant improvements is complex, and has numerous variables that affect the cost to our
customers. Policy decisions on revenue sources, subsidies, and other variables can have a
significant impact to rates and/or charges.
Wastewater Funding and Financing
If one or more Council members would like to have an individual or group briefing
session to discuss funding and financing, we will be available upon request.
Wastewater Funding and Financing
MEMORANDUM
TO: Mayor and City Council
FROM: Dick Warren
DATE: rune 13, 2003
RE: Status of Wastewater Collection and Treatment Agreements,
Issues and Costs
COLLECTION:
We have submitted to Council (June 17, 2003) a proposed agreement with Spokane County for
their Utilities Division to continue the septic tank elimination program (STEP) by building and
operating sewers in Spokane Valley following the County adopted plan and schedule. As you
know, the 2003 STEP projects are now underway.
As part of this agreement, we require the County to continue the 25% subsidy of connection
charges such that Valley users will pay on the same basis as before incorporation. We requested
that the subsidy be funded from the County sewer reserve fund. This saves the City more than $2
million each year if we had to put up cash for the subsidy. In addition, it frees up $500,000 per
year of our REET funds that the County had been using to repay earlier sewer bonds.
Council should be aware that at some point after 2005 -2007, the wastewater treatment rate
charged to allsewer users in the City will probably have to increase, in increments, from the
current $4.00 /month to $6.59- $7.25 /month. This is a fairer way to deal with new treatment
capacity than making,new hook -ups pay higher.and higher rates. At the July 10 meeting, expect
the County to complain about this - approach.• However, we should hold firm.
At some time, perhaps as early as 2005, the City may want to consider taking over the sewer
program. This is a big undertaking, but quite feasible.: The takeover may include the staff of the
County Utilities Division, including the monthly billing system and maintenance, a total of 20 -25
people. All would be paid from monthly sewer fees, currently $20.50 /month. Upon assumption •
of the sewer system, our share of the sewer reserve fund should also come to the City.
WASTEWATER TREATMENT:
In the next 7 -10 years, we will need additional wastewater treatment capacity. In exploring our
options, we have basically four approaches:
1. Work with the County to implement their proposed plan with provision for City
ownership at some future date.
2. Work with the City of Spokane and,Spokane County to create a regional agency that
would own the existing Spokane treatment plant, construct and own a new treatment
plant east of Spokane, and own the existing City of Spokane interceptor lines
between. the two plants. The City of Spokane Valley would be a proportionate owner
of the regional system.
Option
Location
initial Capacity
(MCD) (2)
Initial Cost
(Millions) (2l__
1
Stockyards
12-
_
S116.4
2 -
Browns /Stockyard •
12
$11.2.5!114.4 (1)
3
Not Determined
12 .
Same as #1 or less
4
Browns
12
$1.12.5 .
3. Prepare a separate plan and build our own treatment plant somewhere on the west
edge of the City. We would need to own the sewer collection system for this to be
feasible and collect our share of both the sewer reserve fund and the wastewater
treatment fund held by the County.
4. Work out an agreement only with the City of Spokane to create a two -party regional
wastewater treatment system the same as Option 1. We would be joint owners. The
County would retain. the sewer system in north Spokane, but Spokane Valley would
own the Valley sewer.system.
COST IMPLICATIONS:
After After several meetings with the staffs of the City of Spokane, Spokane County, Liberty Lake
Water and Sewer District, DOE and ourselves, we are in agreement that there is not a si -
cost difference between the four options from the City of Spokane Valley standpoint. The costs
we have all agreed upon for these options are as follows:
(
(2)
cc: Dave Mercier, Dick Thiel
Costs Attributable to Spokane Valley and County
Costs do not reflect potential savings of- S15 -20 million for solids handling at SAWTP.
Spokane Valley would reserve and own 85% of this capacity and be responsible for this share of all
costs. The County and Liberty Lake WSD would be responsible for the balance.
Based on a study by their consultants, the City of Spokane could save more than $20 million with
a regional plant combined with the City's needed CSO requirements.
Based on the County Plan, the City of Spokane Valley could save as much as $10 -15 million with
a regional plant, since solids handling could be handled at the existing Spokane treatment plant
and would not have to be duplicated.
Regardless of which option is implemented, sewer customers within the City of Spokane Valley
should realize lower operating costs since the City of Spokane surcharge Will no longer apply.
A decision on new treatment capacity needs be made before the end of.2003 in order to have
the capacity available by 2010 -12. -
05 13/213 14.30 W I THERSPOONI KELLEY a SP 9211006
• u, �!, �� aG:1C11CitY of Spokane Valley t432
Agreements\ astev, ater• rneu<t _1 FD1. 13. ".d c
Return to Board of County Commissioners
Clerk of the Board
1116 W. Broadway
Spokane, Washington 99206
interlineal Agreement Between the City of Spokane Valley and Spokane
County Regarding Wastewater Management
THIS AGREEMENT, made and entered into this day of June, 2003, by and
between the CITY OF SPODE VALLEY, Washington, a municipal corporation of the Mate
having offices for the transaction of business at 11707 Fast Sprague Avenue,
of Washington, 99206 hereinafter referred to as the "CITY ", and
Suite 106, Spokane Valley Washington,
S)'0 ANE COUNTY, a political subdivision of the State of Washington, having offices for the
t 9 b,
transaction of business at 1116 West Broadway, Spokane Washing Washington on as the
hereinafter referred to as the `COUNTY," jointly referred to, along with the n
"PARTIES-"
WiT ESSETU:
BRAS, the CITY is located in the Aquifer Protection Area established by the
COUNTY by Ordinanc-e S5 -061 dated July 3D, 1985; and
or to the incorporation of the CITY the COUNTY bad, itb the
WHEREAS, prior
direction and approval of the State of Washington Departraent of Ecology (DOE), begun the
arca
e tension of sanitary sewer's within the Aquifer Protection Area which to be oes that
ted i
now iuc,orporat Xi as the City of Spokane Valley, following proms
accordance with the plan developed by the COUNTY; and
WE REAS, the COUNTY has created a Utilities Division within the Public Works
Department capable of implementing the completion of the sanitary sewer program to standards
acceptable to the CITY; and
WHEREAS, the COUNTY h2s prepared and adopted the po)r.ane County 2001
Comprehensive Wastewater Management Plan (Plan) for implernev.tation of a sewer program fkr
the Urban Growth Areas within the Aquifer Protection Area and
WREAS, the CITY wishes to see the completion of the sanitary sewer system to
protect and serve the °T Vs residents, businesses, and the aquifer, and
Pagel of 10
h{0.453 P802
OS/13/2003 14:38 WITHERSPOON KELLEY a 9P9211008
Gleam _ • - !, :\C\ h' of Spokane Vall 143241i ncal
Agreements\VVastewaterAg •eement- REDLINE 6.13.03.doc
AREAS, the COUNTY has received an Extended Grant from the State of
Washington Centennial Clean Water Fwid to be used to reduce the cost impacts of sewer
construction in the Aquifer Protection Area (APA); and
WHEREAS, pursuant to the provisions of chapter 36.36 RCW, the citizens of the
COUNTY voted to implement an APA Fee to subsidize the cost of sewers, whichFee will sunset
in year 2005 unless it is reauthorized by the voters; and
WHEREAS, the COUNTY has historically allocated the one - eighth of 1% local option
sales tax revenues collected pursuant to RCW 82.14.030(2) to the sewer utility to subsidize the
cost of sewers; and
WHEREAS, the COUNTY has accumulated substantial fund balances in the sewer
utility fund from sales tax allocations and APA Fees; and
WHEREAS, a significant part of the APA Fees and sales tax revenues were contributed
from within the area of the CITY; and
WHEREAS, the COUNTY has a policy of assisting property owners by reducing the net
cost of the Capital Facilities Charge Rate (CFR) paid by each property within the sewer program;
and
Page 2of10
..
WHEREAS, the COUNTY and CITY are obligated to complete the elimination of septic
tanks in the Urban Growth Area by extending sewer service to all properties to the extent
practicable; and
WHEREAS, the COUNTY owns, operates, and maintains all of the existing public
sewer system within the CITY; and
WFTEREAS, pursuant to R 36.94.170 the CITY the • 'm. authority for,
constructin o ratinh and maintaainin a sewage system within the C)TY unless the CITY
desires throw h written consent that the COUNTY continue to own, operate, and maintain the
public sewer system within the CITY,
NOW, THEREFORE, for and in consideration of the mutual promises set forth herein,
the PARTIES hereto do mutually agree as follows:
SECTION 1: OWNERSHIP OPERATIONS, TENANC AND ADMINISTRATION
1-1 The CITY ega esr -ntte e-' authorizes the COUNTY to own, operate and
maintain the sanitary sewer system (System) within the CITY as a public utility. For
the purpose of this Agreement the terminology "System" shall mean all publicly owned
sewers, manholes, appurtenances, and pumping stations within public rights of way or
within public easements within the CITY.
NO.453 D003
06/13/2003
Page 3 of 10
14:38 WITHERSPOON KELLEY - 9P9211208
C-lean-Dr41- _ , •IC\City of Spokane Valev l4324Vbtetlocal
Aareeme is\ astewate Agreem REDLINE 6.i3.03.doc
1 -2 The CITY shall grajat a franchise to the COUNTY for use of CITY public right of way
for the purpose of providing said sanitary sewer service. There shall be no cost to the
COUNTY for said franchise._ l the
not enact or any tax on the
oss revenues��
System the COUNTY shall generated
by the System within the CITY pursuant to RCW 36.94.160.
1 -3 The C1CY shall adopt the provisions of Spokane County Code Chapter 8.03 ( "Sewer
ode" in its entirety. The CITY shall play adopt future revisions made by the
COUNTY to Spokane County Code Chapter 8.03 within 90 calendar days of the date of
adoption by the COUNTY. Nothin contained herein shall prevent the City Council
from exercisin • its le _islative d' : on to amend. modi or re • e: the Sewer Code as
rve the best interests of the CITY.
deemed reasonabl
1 -4 The CITY delegates authority to the COUNTY to enforce the provisions of Spokane
County Code Chapter 8.03 within the CITY. COUNTY shall administer, hill, collect
and account for all char • es and service fees related to the S 'stem. CITY shall be
responsible for initiating any civil and/or criminal litigation for enforcement through its
own legal counsel.nyInspection activities, engin s ervices. legal or other action
taken b ,e to enforce or monitor com.li: ce with the Sewer C•de or provide the
benefit to the System shall first be referred to the COUNTY for action. S s emni the event ut
take action identified above or t • es action
not limited to surveys _ studies orprouerty acquisition, the COUNTY shall compensate
the CITY for its reasonable costs ex • -rises and • •li_ations. See RCW 36.94.170.
1 -5 All pen:nits issued by the COUNTY for connection to the System shall be reported to
the CITY. The COUNTY ��� shall retain all fees for right f aY for permits. ts to work
in the CITY rights of way. C
report to the C1TY (i) System extensions
the COUNTY will re
1-6 Each year in January,
completed for the previous calendar year, (ii) the number of actual connections (ERU)
completed the previous year, and (iii) the total ERU count for the System within the
CITY.
1 -7 The COUNTY shall be delegated the authority to administer and enforce connection
requirements to the sewer system, in accordance with Spokane County Code Chapter
8.03. COUNTY shall submit an annual report in January of each year listing the
number and address of all properties where sewer service is available but which have
not completed the connections to the System.
1 1 -8 The COUNTY, through its Board of County Commissioners, will establish, set, and
adopt all rates and charges for the sanitary sewer system. To the maximum extent
possible, rates and charges will be based on cost of service. Prior to setting rates and
charges for the following year the COUNTY shall present it =sits proposal to the CITY
and attempt to reach agreement on any changes. If the cost of service varies
substantially for a class of customers inside the CITY compared to outside,
differential
rates may be adopted upon agreement of the CITY. If th parties aze unable to aeree on
NO.453 D034
06/13/2003 14:38 WITHERSPOON KELLY 4 9P9211008
Gleams D ersien -46 , .- , :1C \City of Spokane Vallev 143241Interloca&
Agreements \WastewaterA±_ - erne t- ;.. DUNE 6. i 3.03.doc
e rates and char es for C cu tourers the atter shall be submitted to mediation.
The form of the mediation shall be as agreed between the parties.
1 -9 The COUNTY, consistent with RCW 36.94.140 and RCW 35.67.020, shall set monthly the System
sewer service fees based on the cost of operation maant Cuuxently, Currently, including current costs for treatment of the wastewater.
treatment is at the City of Spokane Advanced Wastewater Treatment Facility (SAWTP)
for which the COUNTY has a contract with the City of Spokane for up to 10 million
gallons per day of capacity. The COUNTY shall endeavor to maintain the cost of
treatment capacity, including both present and future capacity required to serve the
CITY, at the lowest practicable cost to CITY sewer users. The COUNTY
acknowledges that a portion of the above se ca. : i has been a uired b the
Igo erties connected to the System.
1 -10 CITY and COUNTY agree that the future revenues far new treatment plant capacity,
upgrades of the SAWTP, interceptors and pumping stations will be generated through a
combination of General Facilities Charges (GFC's) and Wastewater Treatment Plant
Charges. CITY agrees that subsidies for GFC's for new development should be
eliminated, and that GFC's should be set at a level to generate adequate revenues to pay
for new treatment plant capacity. COUNTY agrees that surplus revenues (above the
amount necessary to subsidize CFR's) in the reserve funds will be used to offset the
cost of new wastewater treatment plant capacity.
1 -11 Annually, prior to adoption, the COUNTY will provide the CITY with the proposed
Capital Improvement Plan (CIP) and proposed Capital Facilities Rates (CFR's) for
extension and operation of the System within the CITY.
1 -12 The County reco rrnizes that significant revenues from the S �evenu • a e been generated
d to
b CITY ro • - es connected to the S stem and that those
benefit the dcvelopment and constructio o the S stem and treatment plant facility
develo . m e • t or u • ui ade desi t led to serve the C .. ttached is an exhibit sho - W
the present balance ofhe Sewer Funds the is and liabilities of the System and the
nds available and dedicated to development of the , vstem and treatrn . t facilities to
sc rve the CI
SECtION 2: PLANNING, DESIGN, AND CONSTRUCTION OF SEWERS
1
I
1 2 -1 The COUNTY will update the Spokane County 2001 Comprehensive Wastewater
Management Plan (Plan) as necessary to conform to the Ci r of Spokane YAkySeaaty
• ` 1 Comprehensive (land use) Plan and make when revisions to Plan policies ast e
I necessary.
2 -2 The COUNTY shall be responsible for diligently pursuing the completion of the
sanitary sewer system and septic tank elimination program (STJ Y) in accordance with
the Plan and the Six Year Sewer Construction Capital Improvement Program, as
Page 4 of 10
NO.453 D005
06/13/2003 14:38 WITHERSPOON KELLEY 4 9P9211008
s 1C1City of Spokane Valley 1241i
,q�3nterlecal
Aereernents \WastewaterAereernent- RBDLLNE 6.13.03.doc
responsibility amended manually.
This shall include the planning, design, and
construction of new sewers, as identified in the Plan, within the System through the life
of this Agreement
2 -3 The COUNTY may extend the System to areas outside of the CITY, provided that
adequate sewer capacity is maintained to serve properties within the CITY. Extension
of sewer service outside of the CITY shall not cause additional costs to accrue to CITY
sewer users.
2-4 The COUNTY shall restore all CITY streets, in which sewer construction takes place,
with full width reconstruction of the street base, surface and drainage to standards
approved by the CITY, which standards shall not be less than the standards adopted
tion and
applied by the COUNTY prior to incorporation. The CITY shall pay for all
costs to provide full width pavement, beyond the normal trench width pavement
replacement{_( Width— 1.8x Depth) At the beginning of each construction season,
COUNTY staff in collaboration with CITY sta££ will evaluate Lfor full width pavement in
and roads within the CITY, and determine the scope
year's projects. Full width pavement will not be included in the construction
projects for the next construction season until the CITY and COUNTY staffs' agree, in
writing, to the scope and budget for full width paving. During the construction period,
COUNTY will provide monthly invoices to the CITY fore full
calendar paving
ayg
completed, and crry shall provide payment to the COUNTY
...
• •-
2-5 The COUNTY shall continue to actively pursue grants and low interest loans to offset
casts of the sewer construction es
n customers program.
outside and inside of the CITY. n be applied
proportionally to COUNTY sewer
2 -6 The COUNTY will pursue the reauthorization of the Aquifer Protection Area Fees as
provided for in Chapter 3636 RCW to reduce the cost of sewers to users of the System.
The CITY shall passconsider S o C t properties. � to obtain additional
funds to reduce the cost of sew Y residents s
2 -7 The COUNTY shall continue to provide a subsidy to the cost of Capital Facilities Rates
using the computational method currently in effect, within the limits of available funds
for the subsidy. A copy of that method is attached hereto as Attachment " and
nd use
incorporated herein by reference. The COUNTY mays
monies obtained from proper es within the CITY or such other sources as the
COUNTY may elect to fund this subsidy. For the purpose of this Ageeroent the
terminology "Sewer Reserve Fund" shall mean those monies reflected in Budget Funds
403 and 436, indicated as Beginning and End Fund Balances. Sewer Reserve Funds are
for authorized sewer uses and APA. program uses, and are not solely for the subsidy of
Capital Facilities Rates. The CITY will not be obligated to contribute any additional
funds to this subsidy.
SECTION 3: WASTEWATER TREATMENT PLANT CAPACITY
Page 5of10
NO.453 0068
86/13/2003
14:38 W I TI-{ERSP00N KELLEY - 3 9P9211008
Glue , ' O✓3-G LC \City of Spokane Valley 143241fnterlocal
Anreements lWastewaterAg_reement- REDLINE 6.13.03.doc
3 -1 The CITY and COUNTY agree to work jointly to plan for the future wastewater
treatment capacity needed by the CITY and by the COUNTY for unincorporated areas.
Such planning shall include the possibility of a regional system to provide capacity to
the City of Spokane, the COUNTY, the CITY, and other governmental units. This
Agreement does not serve as approval by the CITY of the Wastewater Treatment plan
now being finalized by the COUNTY. Such approval can only result from the above -
referenced joint planning effort and an Amendment to this Agreement, or through a
separate Interlocal Agreement.
34
nreatment- plant -ea at-the -EOUN:Pf—e
Aeat:
SECTION 4: NOTICE
All notices or other communications given hereunder shall be deemed given on: (1) the day such
notices or other communications are received when sent by personal delivery, or (ii) the third day
following the day on which the same have been mailed by first class delivery, postage prepaid
addressed to COUNTY at the address set forth below for such Party, or at such other address as
COUNTY shall from time -to -time designate by notice in writing to the other PARTIES:
COUNTY: Spokane County Chief Executive Officer or his/her authorized representative
1116 West Broadway Avenue
Spokane, Waahirigton 99260
CITY: City of Spokane Valley City Manager or his/her authorized representative
Redwood Plaza
11707 East Sprague Avenue, Suite 106
Spokane Valley, Washington 99206
SECTION 5: COUNTERPARTS
This Agreement may be encecuted in any number of counterparts, each of which, when so
. executed and delivered, shall be an original., but such counterparts shall together constitute but
one and the same.
SECTION 6: ASSIGNMENT
No party may assign in whole or part its interest in this Agreement without the written approval of
all other PARTIES.
SECTION 7: LIAx31 i iTY
(a) COUNTY shall indemnify and hold harmless CITY and its officers, agents, and employees,
or any of them from any and all claims, actions, suits, liability, loss, costs, expenses, and
damages of any nature whatsoever, by any reason of or arising out of any negligent at or
Page 6of10
NO.453 P007
06/132003 14:38' WITHERSPOON KELLEY 4 9P9211008
n4 : \C \City ne Valley 143241Lnterlocal
AL• regiments \WastewaterAnreement- REDLLNE 6.13.03.doc
omission of COUNTY, its officers, agents and employees, or any of them relating to or arising
out of performing services pursuant to this Agreement. In the event that any suit based upon such
claim, action, loss, or damages is brought against CITY, COUNTY shall defend the same at its
sole cost and expense; provided that CITY reserves the right to participate in said suit if any
principle of governmental or public law is involved; and if final judgment in said suit be
rendered against CITY, and its officers, agents, and employees, or any of em, COUNT Y gainst
CITY and COUNTY and their respective officers, agents, and employees,
satisfy the same.
(b) CITY` shall indemnify and hold harmless COUNTY and its officers, agents, and employees,
and all claims, actions, suits, liability, loss, costs, expenses, and
or any of them from any n�
damages of any nature whatsoever, by any reason of or arising out of any negligent act or
omission of CITY, its officers, agents and employees, or any of them relating to or arising out of
perfonning.services pursuant to this A.greeznent. In the event that any suit based upon such
claim, action, loss, or damages is brought against COUNTY, CITY shall defend the same at its
sole cost and expense; provided that COUNTY reserves the right to participate in said suit if any
principle of governmental or public law is involved; and if final judgment in said suit be
rendered against COUNTY, and its officers, agents, and employees, or any of them, or jointly
against COUNTY and CITY and their respective officers, agents, and employees, CITY shall
satisfy the same.
(c) The foregoing indemnity is specifically intended to constitute a waiver of each party's
immunity under Washington's Industrial Tnsurance Act, Chapter 51 RCW, respecting the other
party only, and only to the extent necessary to provide the indemnified party with a full and
complete indemnity of claims made by the indetrmitor's employees. The PARTIES
acknowledge that these provisions were specifically negotiated and agreed upon by them.
(d) COUNTY and CITY agree to either self insure or purchase polices of insurance per oc� e>
matters contained in this Agreement with coverages of not less than $5,000,000 liability and auto
with $5,000,000 aggregate limits including for ENGINEERS professional
liability coverages.
SECTION 8: RELATIONSEOT OF TEE PARTIES
The PARTIES intend that an independent contractor relationship will be created by this Agreement.
No agent, employee, servant or representative of COUNTY shall be deemed to be an employee,
agent, servant or representative of CITY for any purpose. Likewise, no agent, employee, servant or
representative of CITY shall be deemed to be an employee, agent, servant or representative of
COUNTY for any purpose.
SECTION 9: MODIFICATION
This Agreement maybe modified in writing by mutual written agreement of the PARTIES.
SECTION 10: DURATION
Page 7oflo
N3.453 D08S
06/13/2003 14:38 WITHERSPOON KELLEY a 9P9211008
:.; , ! e G :1C \City of Spokane Valley .143241Izaterlocal
Agreements 1WastewaterAgmement- R,LDLINE 6.13.03sloe
This Agreement shall be effective as of the date set forth herein above and shall continue until
terminated by mutual consent of both the CITY and COUNTY.
SECTION 11: TERMINATION
This Agreement may be terminated only by w aa1- -Eenent of bath the CITY and.-COUN-Pic
on twe ve l2 months advance written notice. If the QTY and COUNTY agree to a transfer
of property facilities and equi p ur s u an t to RCW 36.94.180 Ttermination shall be
accomplished by execution of a formal Termination Agreement. The Termination Agreement
shall address transfer of assets, transfer of employees, transfer of fund balances, establishment of
system value, payments, transfer of debts, and all other aspects of an equitable termination of this
Agreement. In the event the parties are unable to on. the content of the Term' ation
ement the ITX ma . roceed with an assum tion of the S ste u throu _ RCW Chaff
a
35.13A.
In the event that the CTry and COUNTY cannot agree on the content of a Termination
Agreement, and p_rier to a CITY assumption• both parties agree to appoint a mutually acceptable
to attempt to resolve all disagreements regarding the contEamt of a Termination
Agreement. 8nl ' -
SECTION 12: PROPERTY AND EQUIPMVIEN,T
The ownership of all property and equipment utilized by the COUNTY under the terms of this
Agreement shall remain with the COUNTY pea- -te e
serer`.
SECTION 13: ALL WRITINGS CONTAINED IFIEREIN/J3INDMIG EFFECT
CI'
This Agreement contains terms and conditions agreed upon by the PARTIES. The PARTIES r Ir o matter agree
that there are no other understandings, oral or otherwise, regarding subject
Agreement.
This Agreement shall be binding upon the PAR'T'IES hereto, their successors and assigns.
SECTION 14: VENUE STIPULATION
This Agreement has been and shall be construed as having been made and delivered within the
State of Washington and it is mutually understood and agreed by each party that this Agreement
shall be governed by the laws of the State of. Washington both as to interpretation and
performance. Any action at law, suit in equity or judicial proceeding for the enforcement of this
Agreement, or any provision hereto, shall be instituted only in courts of competent jurisdiction
within Spokane County, Washington.
SECTION 15: SEVERABILITY
Page 8of10
NO.453 P009
06'13f2003 14:38 WITHERSPOON KELLEY 4 9P9211808
e 4 \, \Cit of S. •kane Valley 14324 ,terl■cal
AereementslWastewater.Agreerne t -R 1✓IN 6.13.03.doc
It is understood and agreed among the PAR ltS that if anyparts, te or provisions
remaining portions of this
Agreement are held by the courts to be illegal, the validity ty or
provisions shall not be affected and the rights and obligations of the P R ES shall tnot be or
affected in regard to the remainder of the Agreement. If it should appear ar tha of the State of
provision of this Agreement is in conflict with any statutory provision
Washington, then the part, term or provision thereof that may be in conflict shall be deemed
inoperative and nu11 and void insofar as it may be in conflict therewith and this Agreement shall
be deemed to modify to conform to such statutory provision.
SECTION 16: RECORDS
All public records prepared, owned, used or retained by COUNTY in conjunction
request by
the CITY Manager. COUNTY will notify CITY of any public disclosure request
42.17 RCW for copies or viewing of such records as well as the PROSECUTOR'S response
thereto.
SECTION 17: READINGS
the
The section headings appearing in this Agreement have been inserted osoalnel sh not
purpose of convenience and ready reference• In no way do fth se b ns to which they
be deemed to define, limit or extend the scope
pertain.
SECTION 18: STATIONARY
CITY agrees COUNTY will use COUNTY'S stationary in conjunction with meeting its
responsibilities under the terms of this Agreement.
LN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and yeax opposite their respective signatures.
DATED: BOARD OF COUNTY CONEMISSIONERS
OF SPOKANE, COUNTY, WASHINGTON
ATTEST:
VICKY M. DALTON
CLERK OF THE BOARD
BY:
Daniela Erickson, Deputy
Page 9 of 10
JOHN ROSKELLEY
PHILLIP.D. HARRIS, Chair
M. KATE MCCASLIN
N0.453 P010
06/13/2003 11438 LIITHERSP0❑N KELLEY 4 9/'9211005
DATED:
Attest:
Acting City Attomoy
Page 10 of 10
Acting City Clerk
Approved as to i vim only:
■_ _ gaG: \ of Se ■kane Valle' 143241I.nter •cal
A #s1 rite pater _regiment- REDLINE 6.13.03,doc
CYTY OF SPOKANE VA J :
By:
Its: -�.--
(Title)
140.453 D'B11
1
M emo
To: David Mercier, City Manager • •
From: Greg McCormick, AICP — Long Range Planning Manager
Date: June 12, 2003
Re: Spokane County 2060 Fund
Backs round
In 2002 Substitute House Bill 2060 (SHB 2060) was passed by Washington State
Legislature. SHB 2060 provided for a ten dollar surcharge on instruments recorded
with the county auditor's office. The law allows the auditor's office to withhold 5% of
.these funds for administration of the program. Sixty percent of the remaining funds are
retained by the. county in which they are collected. Forty percent of the funds go to the
' state to fund state -wide affordable housing programs. The funds collected as a result of
this bill are to be used for low income housing and affordable housing for
persons/households who are at 50% of the area median income.
Specifically, SHB 2060 'funds.can be used for affordable. housing projects to include the
following: 1) acquisition,' construction, or rehabilitation; 2) building operation and
maintenance costs; 3) rental assistance vouchers; and 4) operating costs for
emergency shelters and licensed overnight youth shelters. Funds are allocated within
the county according to an interlocal agreement between the county and the cities
within the county, consistent with countywide and local housing needs and policies.
The Spokane County Board of County Commissioners appointed the county's Housing
and Community Development Department (Department) to administer the local funds
generated from SHB 2060. The Department is responsible for developing and
submitting plans for allocating funds, establishing policies and procedures governing all
activities that are expected to receive funding and develop interlocal agreements with
the county's twelve cities and towns. The Department also administers Community
Development Block Grant (CDBG) funds and HOME funds.
The Department held stakeholders meetings to identify spending priorities and practical
program design considerations for the 2060 funding within the limitations of the
legislation. The stakeholders meeting resulted in an interim program concept for the
2060 program referred to as the Interim Spokane Trust for Affordable Housing (1STAH),
which included the following:
Purpose of ISTAH: The interim program will:
• Ensure that 2060 funds already collected will be distributed into the community
to meet affordable housing needs at the earliest possible date;
• Mae available time to local committee to complete the program design details
fora local housing trust fund that will ultimately replace the interim program; and
• Provide the local committee the ability to observe the interim program in action,
allowing them to evaluate the effectiveness of each element of the program for
consideration to be integrated into the eventual trust fund program.
Term of ISTAH: The interim program will run for a period of 12 to 24 months
depending on the time needed by the local committee to finalize details of the
permanent local housing trust fund_
Fund capitalization; A trust fund will be established using 50% of the 2050 funds
- available to the county. A more detailed financial analysis is necessary to determine
the capitalization goal. The remaining 50% of the funds would be used to address the
immediate needs identified by the !STAN priorities. The original goal was to make the
funds' available in the 1' quarter of 2003, this has now been pushed back due to
interloral agreements from the cities and towns._
Funding rounds_ . Originally, the first funding round was to be in the 1 quarter of
2003 with a second funding round in the fall of 2003_ A funding round was also planned
for the 1 quarter of 2004. The goal is to provide funding for this program on a semi-
annual basis.
Beneficiaries: Spokane County (including incorporated areas) area residents
earning below 50% of the area median income (AMI). Additional preferences will be
established to target populations based on need identified though. planning by
stakeholders,
Loans or Grants: Mixture of loans and grants depending on activity and income
levels. Projects serving 30% or lower AMI will receive grants; projects serving 30% to
50% AM1 will receive loans. An exception to this is that any project receiving funds for
non-capital expenditures will receive a grant_
Who can apply: Any legal entity, Exceptions are although faith -based
organizations and churches may apply, no project will be allowed to restrict participation
based on required religious affiliation or activities. Also, the Department will not accept
applications from individuals for single- family homeowner repair or rent assistance_
Such projects must be sponsored by an organization willing to complete the activities on
a larger scale_
• Page 2
Activities & Priorities: Based on the program designs developed during the stakeholder
process, the following priorities were suggested for the first two years of the program:
• Priority 1 -- Housing rehabilitation and new housing development loans and grants
with preferences for those projects serving persons earning below 30% of
• the 'AMI income, persons with disabilities, or projects in rural areas —
includes homeless shelter developrnent and rehabilitation of those
facilities,
• Priority 2 — Housing , operations assistance grants; 3 year grant terms with no
guarantee for renewal. Includes rental housing and homeless housing. ..
• Priority 3 — Rental assistance (short term) including gap rent assistance, deposits,
etc..
Administration: Spokane County Housing and Com Development
Department and a fund advisory committee.
Planning: Review priorities and conduct a public evaluation of the program
once every two years.
The next steps in this process that have been identified include the following:
1. Forrn the Spokane Trust for Affordable Housing Committee (STAHC) to:
• Observe . plementation of [ TAH and evaluate successes and
difficulties as funding is distributed into the community;
• lasing ISTAH ' program as a guideline, develop funding and
administration policies for the final trust program to be implemented in
12 to 24 months from January 2003;
▪ Develop final trust fund program implementation timeline; and
▪ Develop timeline for future stakeholder input and planning- -
2, Identify and establish evaluation committee members based on guidelines
established above.
3. Develop ISTAH application document for release to public for proposals-
Recommendation
This is the 'first touch' for the Council on this issue, if the Council has significant
questions or clarifications regarding' this program staff: can invite a representative from
the county's - lousing and Community Development Department to attend the next
session on this to discuss in more detail the process that began in May 2002 relative to
formulating the process stakeholders meetings, etc-.
The county and service providers are anxious to get interlocals signed'and returned as
soon as possible so that the first funding round can begin.
a. Page 3
II' TERLOCAL AGREEMENT
FOR 1'HE ADMINISTRATION 01? SURCHARGE FUNDS
COLLECTED PURSUANT TO HOUSE BILL 2060
THIS INTERLOCAL AGREEMENT, (the "Agreement "), is entered into by and between the
SPOKANE COUNTY HOUSING AND COAL DEVELOPMV1`l;M
DE f'A t MEN'1, a governmental entity, whose address is 721 North Jefferson Street, Suite 200,
Spokane WA, 99260, ("SCH &CDD "), and , a
political subdivision of the State of Washington, whose address is
( "Crl"Y") and jointly referred to, as the "Parties", in the manner set forth herein.
R.l C:CTA s
1. The Spokane County Board of County Commissioners, pursuant to the provisions of the
Revised Code of Washington, Section 36.32.120(6), has the care of County property and the
management of.County funds and business; and
•2. Substitute House Bill 2060, creating a special surcharge on the recording documents through
the County Auditor's office, was passed by the Washington State Legislature during the 57
Legislative Session .and signed by Governor Locke on April 2, 2002; and
3. The Spokane County Board of County Commissioners, by Resolution 02 -0438, authorized the
Spokane County Community Services Department and Housing and Corn ntmity
Development :Department Director to develop plans, budgets and administer funds collected
as the surcharge created by Substitute House Bill 2060 and retained by the County; and
4. The Spokane County Conn Services Department and Housing and Cornmurtity
Development Department Director conducted public workshops in October and November
2002, for the purpose of consultation with interested individuals, groups and agencies in
developing plans and processes for allocating Substitute House Bill 2060 surcharge funds;
and
5. On April 22, 2003, pursuant to Resolution 03 -0410, the Spokane County Board of County
Commissioners authorized the Spokane •County Community Services Jepartment and
Housing and Community Development Department Director to implement the Spokane
County Trust Fund for the purpose of administering the Substitute House Bill.2060 surcharge
funds; and
•
6. The purpose of .this Cooperation Agreement, which is entered into pursuant to, and in
accordance with the State Inter -local Cooperation Act, RCW 39.34, is the administration of
the Substitute House Bill 2060 surcharge funds pursuant to Substitute House Bill 2060, as
• enacted.
NOW, THEREFORE, in consideration of promises made herein and the mutual benefits received
hereunder, the Parties agree as follows:
A The Spokane County Housing and Community Development Department is designated as
the County's agency for administering and expenditure of Substitute House Bill' 2060
surcharge funds retained by the Spokane County Auditor pursuant to Substitute House
Bill 2060 as enacted, to be used for the. following purposes:
1. Acquisition, construction, or rehabilitation of housing projects or units within housing
projects that are affordable to very low - income persons with incomes at or below fifty
percent of the area median income.
SIEB 2060 Surcharge Administration
Intcriocal Agreement
Page 1 of 3
i
2. Supporting building operation and maintenance costs of housing projects or units
within housing projects built with (state) housing trust funds, that are affordable to
very low - income persons with incomes at or below fifty percent of the area median
income, and that require a supplement to rent income to cover ongoing operation
expenses.
3. Rental assistance vouchers for housing projects or units within housing projects that
are affordable to very low- income persons with incomes at or below fifty percent of
the area median income, to be admini t &hy a 1DC.,31 public_housing.author:4
other local organization that has an existing rental assistance voucher program,
consistent with the United States Department of Housing and Urban Development's
Section 8 Rental Assistance Voucher program standards.
4. Planning acid administration costs.
B. The Spokane County Housing and Conununity Development Department will provide the
City with a written summary of the funds collected and expended under the terms of this
Agreement.
C. The Spokane County housing and Community Development Department Director will
establish an ad hoc committee to evaluate and recommend proposals for funding with the
available Substitute House Bill 2060 surcharge funds. The committee will be comprised
of the following individuals:
1. 'A Representative of the City of Spokane Valley, appointed by the Mayor.
2. A Representative of the City of Spokaoc Community Development Department,
appointed by the Mayor.
3. A Representative of Spokane County.
4. A Representative of the Spokane Low Income Housing Consortium.
5. A Representative of a non -profit organization providing services to very low- income -
persons with incomes at, or below fifty percent of the arca median income within thc
boundaries of Spokane County.
Uuless extended or otherwise earlier terminated, this Agreement shall expire without
further notice on April 22, 2005.
The term of the Agreement may be extended or altered only by a fitly executed
Amendment, pursuant to the terms of this Agreement.
E. No provision of the Agreement is intended or deemed to create any relationship between
the Parties hereto other than that of independent entities agreeing with each other solely
for the purpose of effecting the provisions of the Agreement. Neither of. the Parties
hereto, nor .any of their respective employees, shall be construed to be the agent,
employee, representative, joint venture, or partner of the other.
F. Contractor and SCRSNi will work togethc in good faith to resolve any disputes relating
to this Agreement. If the Parties are unable to resolve a dispute relating to this
Agreement within fifteen (15) days following the date one Party sends written notice of
thc dispute to the other Party, the dispute may be submitted by tither party to the Director
of Spokane County Community Services ("Director").
The Director's decision- shall be made within five (5) business days of receipt of the
dispute, unless circumstances warrant a reasonable delay in said response.
SHB 2060 Surcharge Administration
Interlocal Agreement
Page 2 of J
ay;
H. Except as provided otherwise herein, this A.green efit may be amended only wri tinig by
agreement of ail parties hereto.
I. Contractor shall not assign this Agreement without Prior written consent of SCT SN, nor
delegate any of its duties hereunder execpt as otherwise provided in this Agreement. This
Agreement may be freely a.ssigrad by the. SCRSN to any successor or affiliate of SCRSN.
1. Any notices required.in accordance with any of.tbe provisions herein shall be delivered
pcssonally, or soot by regLitcrcd or certified mail to
COUNTY:
To: Ka.sey Kramer, SCCSD and SCH&CDD Director
7121 North Jurfurson Street, Suite 403
Spokane, WA 99260
Fax: (509) 477 -6827
With a copy to: Spokane Couuly Housing and Community Development Department
rk J7 p art.rnental Counsel
7Z1 North Jefferson Street, Suite 403
Spokane, WA 99260
Fax: (509) 477 -6827
C UrY:
To
With a copy to
Fax;
ADOPTED by the Board of County Commissioners of Spokane County, .Way&b ington this
dsy of 20W. •
ATTEST;
VICCY M. I ALTO -
CaTIC OF THE BOARD
DATE,
] :Isiah Erickson, Deputy
SltB2060
to mlocal Agruancnt
P 2 3 of 3 •
Far.
John Roskelley, Chair
Phillip D. Harris, ice-Chair
Tae McC'asIin, Commissioner
FOR. CONTRACTOR:
City of
By.
NAIvFE
1TS: Mayor
Spokane County 2060 Fund
• Process
• Program Design
• Implementation
Developed by:
Spokane County Housing & Community Development Department'
In cooperation with
Spokane County Long Range Planning Department and City of Spokane
Community Development Department
In consultation with
- Caroline McDonald Consulting
Introduction
This document has been prepared to provide the public with a written record of the
process undertaken by Spokane County to develop a new program supported by funds
generated from SHB 2060. Because the process itself evolved as new information was
provided by stakeholders, the, document is presented in a linear narrative which
summarizes the planning process and the program developed through that process.
After two public workshops, stakeholders determined that the funds generated by SHB
2060 will be awarded in 2003 under the terms of an "interim program" (described later in
this document). Implementation of an interim program will allow. additional time for
stakeholders to develop program details for a local trust fund program (to ultimately
replace the interirn program), while ensuring that SHB 2060 funds currently available are
• used in the community without delay. This document outlines the general guidelines and
implementation timeline for the interim program.
Prepared by: Caroline McDonald Consulting Page 1
December 1002
Executive Summary
Backj'round .
For many years, affordable housing advocates sought support for the establishment of an ongoing
source of funding for affordable housing activities that did not rely on biennial appropriations by
the Washington State Legislature. After many years and much compromise, Substitute Housing
Bill 2060 (SHB 2060) was approved by the 57 Legislative session and signed into law by
Governor Locke on April 2, 2002. The bill provided for a ten dollar surcharge to be added to
document recording fee. Sixty percent of the revenue generated by this surcharge will be
retained by the county for housing projects that are affordable to very low - income persons with
incomes at or below fifty percent of the arca median income. The remaining forty percent will be
transferred to the State to support building operation and maintenance costs' of housing projects
that are affordable to extremely low - income persons with incomes at or below thirty percent of
the area median income.
According to SHB 2060, the county share of the revenues must be used in accordance .with the
following general guidelines':
1.. Housing projects must be affordable households .earning at or below 50% Area Median
Income (AM1).
2. SIB 2060 revenues may be used for:
• Acquisition, construction, or rehabilitation
• 13uilding operation and maintenance costs (HTF projects only)
• Rental assistance vouchers
• Operating costs for emergency shelters and licensed overnight youth shelters
3. New construction is only permitted if the vacancy rate is below 10 %.
4. Funds will be.allocated within the county according to an interlocal agreement between
the county and the cities within the county, consistent with countywide and-local housing
needs and policies.
On April 30, 2002, the Spokane County Board of Cotmty Commissioners appointed the 'Housing
and Cornmunity Development Department ( "Department ") to administer the local funds
generated from SH]3 2060. The Department is responsible for developing and submitting plans
for allocating funds, establishing policies and procedures governing all activities that are expected
to receive funding, and developing interlocal agreements with the County's twelve cities and
towns.
..Public Participation& Program Design -
In accordance with commissioner instruction, the Department sought the input of the public
through public meetings, workshops, and internet forums. Those participating in this process .are
identified as "stakeholders ". After two public workshops and compiled written comments
received through email, an internet bulletin board, and advance workshop registration
questionnaires, stakeholders identified two seemingly contradictory needs for the proposed new
housing program:
•
1. The program musi make funding available as soon as possible in order to begin
addressing immediate affordable housing needs.
' A complete copy of S1413 is included in this document as "Attachment 4 ".
Prepared by: Caroline McDonald Consulting
December 2002
. Page 2
2. The program must include the establishment of a local housing trust fund that would
ultimately provide a renewable, sizable local funding source to promote affordable
housing in the long term.
The development of a housing trust fund will take time, prohibiting the immediate release of 2060
funding into the community. In order to reconcile these two community requirements,
stakeholders determined that an "interim program" be established using 50% of available SHB
2060 revenues on an annual basis to address immediate needs while the remaining 50% of
revenues would be set aside to begin the trust fund capitalization process. The "Interim Spokane
Trust for Affordable Housing" (ISTAR) will be implemented immediately while further research
and local effort is put forth to establish a local housing trust fund.
Abbreviated guidelines for establishing and implementing the ISTAH follow
Purpose of Interim The interim program will:
Program • Ensure that SHB 2060 funds already collected will be distributed into
the conununity to meet affordable housing needs at the earliest possible
date;
• Give time to a local cornrnittee to complete the program design details
for a local housing trust fund that will ultimately replace the interim
program; and
• Give the local committee the ability to observe the interirn progra m in
action, allowing them to evaluate the effectiveness of each clement of
the program for consideration- to be integrated into the eventual trust
fund program.
Program Term The interim program will ruin for a period of 12 -24 months
• Funds available When the Department releases a request for proposals for the use of 2060
funds (1" quarter-2003), half of the 2060 funds held by the Department will
be retained to begin the fund capitalization process. The remaining 50% will
be distributed into the community to meet affordable housing needs. Until
the interim program is replaced, half of all available funds (including half of
any interest earned) will always go toward fund capitalization.
Funding rounds Annual until enough funds allow semi - annual funding rounds
Grants vs. Loans Projects serving 30% AMI and lower will receive grants. Projects serving
30% AMI to 50% AMI will receive loans. Exception: Any project receiving
funds for non - capital expenditures will receive a grant.
Loan Terms - Loan terms will vary with proposals and will be determined by review
committee.
Eligible applicants • Any legal entity.
Funding The minimum request will be $5,000. The maximum request will be limited
limitations only by funds available.
Term of award Successful projects will be awarded fiords to be used within 12 months from
the time a contract is executed with the County.
Z Please see the "Final Program Design Workshop" section of this document for the complete guidelines including •
exceptions and program details as developed by the stakeholders.
Prepared by: Caroline McDonald Consulting Page 3
December 2002
Renewable grants Applicants may apply in subsequent years for additional fielding.
Priorities • Priority #1: Housing rehabilitation and new housing development loans
& grants (with preference for those projects serving <30% AMT.,
persons with disabilities, or projects in rural areas) — includes homeless
shelter development and rehab •
• Priority #2: Housing. operations assistance grants. Includes rental
housing and homeless housing
• Priority #3: Rental assistance (short terrn),including gap rent assistance,
deposits, etc. •
Priorities are to be considered thresholds, i.e., in order for a proposal to be
eligible for funding during the first RFP period, it must address one of the
three priorities listed above. Priorities may also be used as tiebreakers in the
evaluation process. All other considerations being equal, projects addressing
priority #1 will be funded in favor of projects addressing other priorities.
Set - asides There will be no set -aside amounts for these priorities.
Evaluation Criteria • Proposal demonstrates need of population, including consistency with
County and/or City comprehensive plans.
• Proposal demonstrates financial feasibility.
• Proposal demonstrates applicant's capacity complete project.
• Soundness of project design: Ls the project feasible? Does it make
- sense? Have all other sources of funding been explored?
Evaluation Evaluation committee composition:
Committee 1. - Representative of the City of Spokane Valley
2. Representative of the City of Spokane
3. Representative of Spokane County (Community Services or
Community Development Department member)
4. Representative of SLI:HC (Spokane Low Income Housing Consortium)
5. Representative of the non -profit service provider community
Next Steams
1. Request review and approval from County Board of Cominissioners
2. Present final document and program proposal to public for comment
3. Form Local Spokane Trust for Affordable Housing Committee (STAHC) to:
a. Observe implernehtation of ISTAH and evaluate successes and difficulties as funding is
distributed into the community.
•
b. Using ISTAH program as a guideline, develop funding and administraticin policies for the
final Trust Fund Program (to be implemented in 12 -24 months from January 2003).
c. Develop final Trust Fund Program implementation timeline.
d. Develop timeline for future stakeholder input and planning.
4. Identify and establish evaluation committee members based on guidelines established above.
5. Develop ISTAI4 application document and release to public for proposals.
This committee could be identical to the evaluation committee for the ISTAH or another similarly diverse group of
stakeholders overseen by the County.
Prepared by: Caroline McDonald Consulting Page 4
December 2002
Background on Substitute House Bill 2060 (SHB 2060)
and the Spokane County Program Development Process
Between 1990 and 1995, counties in Washington State had the option to use a small percent of
the local Real Estate Ex.cise Tax revenues for housing activities. Successful programs were
established in King and Snohomish Counties. The State Legislature ended the program in 1995.
Since 1995, housing advocates across Washington State sought support for establishment of an
ongoing source of funding for housing that would be affordable to low- income households that
did not rely on biennial appropriations by the Legislature. Legislation was proposed in 1996 to
increase the fee charged when documents are recorded by five dollars and to use the revenues for
affordable housing. The legislation did not pass, but it started the discussion of the recording fee
as a revenue source for affordable housing.
Affordable housing advocates continued to rally support for the concept of an ongoing funding
source for affordable housing among housing and service providers and legislators. Finally,
during the 2001 legislative session, .a • bill authorizing a three - dollar increase in document
recording fees passed the Senate but failed to pass in the I -Iouse of Representatives.
A series of events occurred after the legislative session ended in 2001 and in early 2002, resulting
in increased support for passage of the document recording fee bill. These included:
1. Governor Locke required state agencies.to submit proposals for 2002 program spending
reductions to offset reduced state revenues.
2. The State's Office of Community Development proposed shifting partial finding for the
Overnight Youth Shelter and Emergency Shelter Programs to revenues generated from
recording fees as part of their mandated spending cuts.
3_ Housing providers across the state faced. increased operating costs (e_g_, utilities,
insurance, lead -based paint abaternent_in shelter, transitional and - permanent housing units
for low- income people) and sought a revenue source to provide operating subsidies.
4. Business and local government associations viewed housing development as an economic
stimulus, particularly in, rural areas and communities with high unemployment, and
sought a locally controlled revenue source to increase affordable housing production.
In 2002, the Washington State Legislature passed a budget that included the anticipated revenues
from a ten- dollar document recording•fee. Substitute House Bill 2060 represented a comproiise
of the Many for - profit, non - profit, and government entities involved in the development and/or
operation of affordable housing in Washington State. Language was added to the hill to gain
support andlor eliminate the opposition of many stakeholders. Six statewide business
associations, four associations of local government, and .35 non -profit organizations and
associates supported the compromise legislation. Some of the perspectives included:
1. Affordable housing advocates supported the strict targeting of the funding to people with
incomes below 50% of the area median income ( "ANTI ").
Prepared by: Caroline McDonald Consulting Page 5
December 1002
2. Owners of shelters and affordable housing supported a provision for . operating subsidies.
3. The State's Office of Cornmmunity Development supported an allocation to it of 40% of
the funding, a portion of which would be used to offset proposed reductions in shelter
programs.
4. Local governments supported locally controlled housing development funding to
stimulate local economies and/or to address the affordable housing requirements of the
Growth Management Act
5. Realtors and lenders supported funding for housing development.'
6. The State Landlord Association supported assurance that new rental housing would not
be built in areas with high vacancy rates.
7. The State Auditors Association supported a portion of the revenues to offset costs of
collecting the fee.
Substitute Housing.Bill 2060 was approved by the 57 Legislative session and signed into law by
Governor Locke on April 2, 2002.
On April 30, 2002, the Board of County Commissioners of Spokane County (BoCC) appointed
the Housing and Cornrnunity Development Depattinent-( "Department ") to administer the local
funds generated from SH_t3 2060. The Department is responsible for developing and submitting
plans for allocating funds, establishing policies and procedures governing all activities that are
expected to receive funding, and developing interlocal agreements with the County's twelve cities
and towns. The Department was directed to make every effort to consult with city and town
representatives in identifying activities to address local affordable• housing needs. The Board of
County Commissioners must approve the resulting program to allocate the funds.
In order for the County to carry • out its administrative responsibilities, the Department has
provided opportunities for interested groups, individuals, and local governments to participate in
identifying activities and developing draft goals and objectives. Those interested in participating
in the process are identified as "stakeholders."
On May 8, 2002, the Department met with representatives from the City of Spokane's
Community Development Department, the Spokane.Low Income Housing Consortium, and the
Spokane County Plan.n.ing Department to discuss possible avenues for allocating funds, including
public consultation, program options, and process. A subsequent meeting of this group ( "2060
Internal Committee ") was held on June 26 to discuss concept papers, materials, and methods to
facilitate "workgroups," consisting of stakeholders interested in affordable housing activities.
The stakeholders must be willing to commit their time. and effort toward achieving our collective
goals in determining the "best" use of surcharge funding within our communities. In September
2002, Caroline McDonald Consulting ( "CMC ") was hired by the Department to facilitate the
workgroups, coordinate the inforrnation, and prepare a written document outlining the process
. and conclusions.
Prepared by: Caroline McDonald Consulting • Page 6
December 2002
Stakeholder Development of an Initial Program Concept
CMC met with the 2060 Internal Committee on September 19 and October 15, 2002, to establish
a process to obtain stakeholder input. They determined that a public workshop would be held to
identify spending priorities and practical program design considerations for the 2060 funding
within the bounds of the State legislation- The workshop was set for October 23, 2002, at the
Mukogawa Fort Wright Institute.' Invitations were sent by mail to citizens, neighborhood groups,
for -profit and non -pro [tit housing developers, social service providers, and elected r[ resentatives
and selected governmental departments of each of the cities and towns located within Spokane
County, The workshop was advertised in the newspaper of record and on the Spokane County
virebsite, The mailings and website included the foIIowing materials-
• Draft agenda
• SRB 2060 background ,
• Registration (including a request to provide the 2060 Internal Committee with advance
information on community housing needs and any other areas of interest for the 2060
funding;)
• Summary of the 2060 legislative requirements
• Draft program design worksheet (exercise to be completed during the workshop)
• Program development process
Fifty -nine people registered for the 2060 workshop; 52 attended and participated. Prior to `the
workshop, seating and imorkgroups were assigned by staff to ensure that each table had a mixture
' of interests and experience. It was anticipated that this mix would encourage the open c.Kchange
of diverse ideas and perspectives within the workgroups during the program design phase of the
workhop- A total of seven workgroups were formed_ The workgroups were instructed to design
potential programs and prioritize needs within their own group prior to full group presentations.
Each vrorlcgroup was asked to present two proem design ideas to the entire group at the 'end of
the exercise_
Based on the number and varying backgrounds of the registrants, the agenda was soEriewhat
mortified from its original foram as listed on the Spokane County vrebsite prior to the workshop.
The update agenda used during the workshop follows:
Prepared by: Caroline McDonald Consulting -- — -- Page 7
December 2002 -
AGENDA
SHB 2060 Housing Funds
Affordable Housing Workshop
October 23, 2002
'9:00 am Welcome & opening comments
Kersey Kramer, Director Spokane County Housing & Community
Development 'and Community Services Departments
Debbie Groom, Internal/External Auditor; Spokane County
Housing & Community Development and Community
Services Departments
Participant Introductions
.9:45 am Meeting purpose & agenda review
10:00 am Review program areas of interest & solicit new ideas
10:15 am Break
10:30 am Break into workgroups, receive instructions
10:45 am Workgroups begin program design worksheets'
1:1:45 pm Lunch
12:45 pm Workgroups present program ideas to full group
2:30 pin Participants rank program designs
2:45 pm Next steps & thank You
A- number of participants identified activities, priorities, and design considerations with their
registrations. These were provided as a handout at the workshop and were offered to the
Workgroups as focus areas for designing a program.
Areas of Interest for 2060 Funding'
Specific Activities
■ 1�` time hornebuyer. self help /sweat equity
• Rehab owner - occupied and rental
o TJpgrade of existing housing for low income elderly and disabled
o Money available for minor home repair essential for health & safety
o Additional energy assistance programs other than SNAP
o Encourage environmental modification of existing homes
o
Lead based paint remed.iation for landlords renting in voucher programs &
homeownership
o Funds for rehab to make existing housing accessible
• New housing development
o New rental housing
o New housing for disabled
o New housing development including land acquisition
Prepared by: Caroline McDonald Consulting Page 8
December 2002
o Develop new housing with universal design techniques
o Fund technology -aided living to support people's independence (medication
management, nutrition, lighting)
• Operating subsidies
o Homeless housing
o Affordable rental housing
• Housing suvnort services for mental health consumers
• Develo ment'(capitalization) at a Spokane housing Trust Fund
• Homeless housing
o New shelters
o Harm reduction housing
o Homeless shelter for domestic violence victims
o Homeless case management services
• Rental assistance (vouchers) for people with disabilities
• Technical Assistance and Training •
o Default prevention
o Building capacity of housing organizations
Capital Reserves
General Program Design Considerations
• Get program miming ASAP
• Have funding provided as grants
• How 2060 funds can best fill critical housing financing gaps
■ Low cost housing, helping people remain in their own home
■ Keep funds targeted for use as outlined in legislation
• Low income housing & fair market rent
• Have easy application process
Before the design exercise, the groups were provided with written and oral instructions to
complete the design worksheet, which, among other information, outlined the legislative
requirements for the funds and the estimated amount of annual SFIB 2060 revenue (see
attachment 1). Each group was asked to prepare and present two program design ideas to the
entire group. At 1:15 pm, the workgroups started their presentations to the entire group. After
each of the seven workgroups presented one design idea, they were given the opportunity to
present their second idea.
Ultimately, twelve presentations were made. Of those, six specified the development of a local
housing trust fund Most of the remainder were either companion programs to the trust fund or
descriptions of set - asides and funding priorities within the fund itself'. A comparison of the six
proposed trust fund program designs as presented during the workshop follows.
It should be understood that some of the presentations described only the structure of a proposed trust fund, while
others included specific descriptions of set -aside programs that would run within the trust fund itself. All of the trust
fund program proposals arc included in a single table for comparison. Additional proposals that were not specifically
presented as part of a workgroup's must fund proposal are included in a second table for comparison.
$ Note: Because many of the presentations were similar, it was decided that a vote would not be taken at the end of the •
program as indicated by the updated agenda.
Prepared by: Caroline McDonald Consulting - _ Page 9
December 2002
' • •
• • .0 . ro ram . Os ns' . • - 1,1 -- . „ . , •
.
"Sp aka no Trust
Fund"
Presentation 01
'Local Trust Fund"
Presentation #2
"Save the World"
Presentation 03 .
•
"Spokane County • •
Housing Trust Fund"
Presentation #5
"Housing Trust
Foundation"
Presentation #Ta 48
"Support llousing,Tr
Fund" Pivsentation #10
Capitalization goal
SI million
SS million
N/A •
N/A
N/A
NIA
Capitalization rate
$250,000/year for 4 years
SS00,000/year for 10 years
N/A
N/A
NIA
52.50,000/year for (?) years
• <50% AMI
'• <3W• AMI (143 priority for.
serving this group)
-
.
Beneficiaries,
Priorities, and/or
Set-asides
• Persons w/ disabilities
needing assistance to
remain in existing home
• <SO% .AMI
• <3O% AMI (establish a
fund set-aside for this
group) •
• .
• <S0% AMT
• 50% of fund - any eligible
use as defined by legislation
• 30% of fund • operation
assistance
• 20% of fund - rental
assistance
• <50% AM!
• Priority for projects serving
neglected and rural areas
•
•
. .
.
.
•
•- <50% AMI
• • <30% AMI (add'l
application points awarder
(or serving this group)
.
-
• <20% AMI
• 5200K set-aside/yr. for rental
housing developsnent & rehab
• $AW set-aside/yr. for
emergency & permanent
, hotnelcss youth housing
. operations assistance
• Remainder of funds, all eligible
uses
Funding rounds
•
S emi•annual
Quarterly
•
Annually
Annual
.
• Quarterly for youth sct-aside
• Coordinate with other sources air
All other activities
Quarterly
•
Loans/Grants
-
N/A
•
• Cram (rental assistance &
operations costs)
• Loan (allot/ter aitivities)
• Grants (,oft COALS) .
• Loans with interest (hard
costs) .
.
• Orants
• Loans
-
• Grants (for the two set-aside
prog,rarns)
.
• Grants (rental assistance,
operations)
• Loans (acquisitionfrehab; paid
vrh en property sold)
Who can apply
NIA
'
•
• For-profit
• Non•profit
• Other service providers
Non•profits
•
• For-profit .
• Non-profit -
• Service & housing providers
• All appticants most
dcrilonstrttc capacity
• Non-profits serving homeless
youth
• Non-profits
• For-profit
• Non-profit •
.
Administered by:
N(A
Spokane Housing Authority
Spokane Housing Authority
N/A. •
•
N/A
Other program
notes
•
•
•
•
•
-
Pa person and per unit caps
will be establishoci co ensure.
cost effectiveness •
Operation assistance will be
granted on a 3-year basis
• Keep application process '
simple
• Provide list of tecitnical
assistance providers with app.
• Review priorities and app.
process every 2 years
Priority populations for
development/rehab set-aside:
•Chronically mentally
ill/substance abuse
• Harm reduction
• Individuals & families •
• Psi-sorts with disabilities
• Operation assistance (of up to
35% of ammal operations) will •
be offered for 1-3 year only
meant as a stop gap until a long-
term solution can be developed
•No limit an emergency repairs
assistance
"AMI" means'area me ion income. These are income levels established by the federal government and used as a basis for many progarn.s. For examples of local AMI sec Attachment L.
Prepared by: Caroline McDonald Consulting
,
• December 2002
Page 10
The presentations made clearly demonstrated the stakeholders' interest in the formation of a local
trust fund. Three reasons for this interest were voiced
1. A trust fund would. allow the community to solicit additional capital for the fund from
private foundations and others to increase this resource.
2. A trust fund would grow and renew itself through loan returns, helping the fund remain
steady over time, regardless of fluctuations in the housing market and the amount of new
capital being infused from 2060 filing fees.
3. Formation of a local housing trust fund would enable Spolane to take advantage of
National Housing Trust Fund dollars should they become available through future federal
icgislation.
Although there was widespread agreement among the workshop participants that a local trust
fund should be formed, there were various Levels of understanding of the nature of trust funds.
While some participants were familiar with the State Housing Trust Fund, some participants
seemed unclear as to how a trust fund is funded and operates. There was no discussion of how
any proposed local trust fund would operate.
The salient points of the trust fund presentations included:
Caoitalization goal Range of S1 million to S5million with many groups undecided
Annual contribution to Range 25% - 100% of annual 2060 fund with many undecided
trust fund:
Incomes of targetpopulations Five proposals indicated <50% A.MI
& Benefciaries
One proposal preferred beneficiaries be limited to. <30% A.MI
A surnmmary of the remaining program elements is included after the comparison of the non - trust
fund program design presentations.
6 During this workshop, no discussion of the legal requirements or administrative costs of any proposed trust fund
oceurrerL
7 "Capitalization goal" refers to total amount of contributions made to the fund over time. Once the fund is fully
"capitalized," all activities would be paid for by the interest generated by the balance of principal.
8 A summary of priorities and set - asides proposed for the trust fund will be included after the discussion of all the
remaining presentations.
Prepared by: Caroline McDonald Consulting Page 1
December 2002'
. . , . ...:.. .. . :.: ,...
., , .... . . . .. -,-,
-.- 7...t-
....--,
— - 7' -v iri k 'f.z.ri ,. vw - 4. - e. - e n t: , • ,.7- - . - .& -IE ,2:te ,r ...1.-.. - .: ,-- ,...: - ... ,- -.1. -, ..,::t.„. - li c -- ri .i. 1. .:: - .7. - .7 - _ :: , .. „ ... - : :
''''
• • ..,.,:_,
- "Reserie Co-op"
Presentation #12
"CommunitylnitiatIves"
Presentation #4 '
.
"Rent 8 Deposit '
AssIstando"
Presentation #6
''Gimme Shelter"
Presentation #7b
"Such a Good Icioa, '
SAG!"
Presentation #9
.
"Rental Operations .
Assistance"
Presentation #11
Program
Description
.
Non-set-aside fUnds from a
local housing trust fund that
would support housing
preservation and leverage
volunteers
Rent and deposit assistance for
the very low income
(homelessness prevention)
. .
Operations support for existing '
homeless shelters and
development of new shelters
•
Housing rehabilitation program.
which allows people to remain
in their homes
Operations assistance for new
and existing rental housing
.
.
Maintenance reserve fund
initially capitalized by the 2060
funds for use by co-op
members to complete
maintenance and required
repairs.
How much 2060 $
Up to 50% of available fund,
Up to 13% of available fbilds
N/A
Up to SSO,C•0•Wproject
Up to 20% of available S
N/A , -
N/A
'
Beneficiaries and •
activities
. .
• •
• <50% AM'
• Non-operational costs
• Ont•time costs only
• Limited to
$5,000/antleipated
beneficiary
• <30% AMT
• Emergency assistance
•
• Homeless (HUD Definition)
• Operations
• Support services
• Staffing
. Acquisition & development
•
• <50% AMI (homeowners &
renters)
• Wentherization, '
• Accessibility upsTades,
• Lead-based paint testing and
. abatement, etc.
• <50% AMI
• repair & maintenance
• other operations needs
• limited (0 2.3 years
• Housing organizations
serving <50% AMI
• Repair & maintenance
Funding rounds
Annual . •
Monthly
Annually
Setni-annual .
Annual or semi-annual
Annual
Loans/Grants
Grants . .
•
• Grants .
• Grants
• Loans— may be forgivable
over time (typically 5 yrs.)
• Grants
• Grants •
.
Who can apply
• Non-profit
• Faith-based organizations &
• churches
• Employee groups
(no indivicher0.0
• Any individual at <30% AMI
• Non-profits
.
.
• For-progt
• Non-profit
• Individuals
• Landlords
• Any housing organization
owning properly
• For-profit & non-profit
serving <$0% AMI
. .
Other program
it 0 teS .
Projects will be required to
match Rinds with volunteer
seNices
.
7
.
•
• .
Keep application process simple
. •
.
-
-
• -
•
&Per initis.12060 capitalization
of rescrie pool, members would
pay a per unit amount to join
oo-op. Members could -
withdraw funds for eligible
maintenance and repair needs.
Prepared by: Caroline McDonald Consulting
December 2002
Page 12
A summary of the program design elements common to all program designs (trust fund and non -
trust fund program designs) included:
Funding rounds: Of the 12 presentations, a majority (6) indicated that the funding should
be annual; the remaining preferences were split between quarterly and
semi - annually.
Loans or grr'ants: Of those indicating a preference, all trust fund proposals indicated that
the funds should be provided as a mixture of loans and grants. With
one exception, all other programs preferred grants only.
Who can apples Presenters were fairly evenly split between allowing applications from
non -profit and for -profit organizations, versus non -profit only.
A discussion of set- asides:
Of those indicating a preference, the majority of the presenters indicated support for set - asides
within the fund. However, there-was no overwhelming agreement as to which activity or group
of beneficiaries should receive the set - aside, nor was there agreement as to the amount of each
set- aside. According to all twelve presentations, priorities and beneficiaries of set - asides were as
follows (each check represents how many workgroups included the idea in at least one of its two
presentations):
Populations
• Persons with disabilities
• Persons <30% AMI
• Neglected and rural areas
Activities
• Rental Assistance ' v
• Operations
• Rental housing development & rehabilitation v v „
• 'Homeless shelter operations & development v
Amount of set -aside
• Range $40,000- $250,000lyear
October 23, 2002 Workshop Recommendations
. Based on the presentations of the workshop participants, the stakeholders were very interested in
developing a local housing trust fund. However, the need to make 2060 funds available as soon
as possible was also voiced very strongly. The development of a housing trust fund will take
time, prohibiting the immediate release of 2060 funding into the community. Therefore, in order
to address both the goals of establishing a local trust firnd and addressing immediate community
housing needs, the "Spokane County Interim 2060 Housing Program (Interim Program) will be
established while further research and local effort is put forth to establish a local housing trust
fund.
Many of the proposed activities that were presented during the workshop can be addressed in the
short term without the specific structure of a trust fund. The Interim Program can be established
as a revolving housing fund that blends the stakeholders' priorities and preferences so that many
Prepared by: Caroline McDonald Consulting Page 13
December 2002 .
of the immediate community housing needs may begin. to be addressed. A suggested general
program concept for the Interim Program follows:
Interim Program Concept
Description: This fund, established and funded annually with the fees generated from
SHB 2060 legislation (approximately $500,000 for its first year), .will
serve the housing needs of the Spokane County community consistent
with the legislation passed by the Washington State Legislature. This
program will operate until such time that a local housing. trust fund is
established. At that time, all assets and obligations of the Interim
Program will be transferred to the local housing trust fund, if possible.
Fund capitalization Although using 100% of the available 2060 fees will increase the fund
rate: much more quickly in the early years, that would disallow the use of
this money for immediate needs in the community, expressed clearly by
the stakeholders. Therefore, 50% of the available funds will be set
aside each year for fund growth. A fi►rther financial analysis should be
completed to determine the capitalization goal. The retraining 50% of
the available fees should be used to address the needs as identified by
the stakeholders. .
Beneficiaries: Spokane Community residents earning <50% A.NII. Additional
preferences will be established for more specific target populations
based on need as expressed through. planning by the stakeholders (see
section below on "activities & priorities ").
Funding .rounds: Annual
Loans or grants: Mixture of loans and grants, depending on activity
Who can apply: Non- profit; For- profit, housing and service organizations, faith based
organizations, and individuals
Activities & priorities Based on the program designs presented by the workgoups, the
following priorities are suggested for first two years of this fund:
• Priority #1: Housing rehabilitation s and new housing
development loans and grants (with preference for those projects
serving <30% AMT, persons. with disabilities, or projects in rural
areas) — includes homeless shelter development and rehab
• _Priority #2: Housing operations assistance grants- 3 -year grant
terms with no guarantee for renewal. Includes rental housing
and homeless housing
• Priority #3: Rental assistance (short term) including gap rent
assistance, deposits, etc.
s In spite of their popularity among the workgroups, the idea of set - asides was put aside in favor of priorities because it
is much easier to modify priorities based on changing community needs during a regular public planning process than it
is t� modify an existing set- aside.
Prepared by: Caroline McDonald' Consulting
December 2002 .
Page 14
Interim Program Concept
Administration Spokane County Housing & Community Development Department and
a fund advisory committee. A party other than the County may
administer any local trust fund that might be established in the future.
Planning Review priorities and conduct a public evaluation of the program once
every two years. •
While a majority of the stakeholders supported-forming a local housing trust fund immediately,
there was no discussion of the legal and administrative requirements of such a fund. In fact, some
proposals were in conflict. For example, it is not possible to grant the majority of the available
funds and still grow the principal required to maintain and operate a trust fund. At the conclusion
of the October 23 meeting, stakeholders expressed the desire to participate in an additional
workshop that would give them opportunity to provide input on many of the issues thatwere left
undecided. in order to address these issues, another workshop was scheduled..
Prepared by: Caroline McDonald Consulting Page 15
December 2002 •
Final Program Design Workshop
In addition to a draft version of this document, the following invitation and materials were sent to
all stakeholders:
• • Follow -Up Workshop Invitation
• Agenda*
• List of Discussion Topics*
`The agenda and list of discussion topics are included as attachments to this document
The purpose of the follow up meeting was to:
1. Provide additional .legal and logistical information regarding the desire of the
stakeholders to form a local housing trust fund, and
2. Obtain enough additional program detail from the stakeholders to present in interim •
program plan to the Commissioners and subsequently implement that program within the
first quarter of 2003.
Housing Trust Fund Logistics
pave Hubert, Deputy District Attorney, addressed stakeholders and explained that the fund
already established by the County for the SI-B 2060 funds per the state legislation is consistent
with a "trust fund "; therefore, no other fund needs to be established in order to comply with the
stakeholder's wishes The only thing that remains to be done is to continue working on the
details of the operation, administration, and maintenance of the fund. Some of the salient points
of the discussion were:
According to the SHB 2060 legislation:
• Funds collected by the 2060 legislation are to be given to and maintained by the County.
This may present a problem in utilizing a third party to administer the funds as desired by
some of the stakeholders. If administration by another party is to be Considered,
additional legal opinions must tie sought.
• The County must develop inter -local agreements with the cities and towns regarding the
distribution of funds.
• The fund is set up to allow for additional donations to be made to the fund in the form of
grants and private donations. However, it is unclear whether donors would be entitled to
. a charitable tax deduction because the County is not a "non-profit".
Based on the information discussed, it was determined-by the stakeholders that the existing fund
that has already been established by the County to maintain the 2060 funds would . be sufficient as
a "local housing trust fund ". .
'° Written documentation provided by Mr. Hubert and the Department luting the November 21" workshop including a
financial analysis of the funds collected to date are included in this document as "Attachment 3 and 4 ".
Prepared by: Caroline McDonald Consulting , Page 16
December 2002
Interim ,Prokram Final Design Development
Although a program concept had been designed from the information provided by the
stakeholders at the October 23 workshop, additional detail was needed to move into program
implementation. The discussion topics outlined many of the issues that were put to the
stakeholders for discussion and decision (see attachment 5). The decisions made regarding the
details of the interim program follow ":
Interim Spokane Trust for Affordable Housing (ISTAH)
Discussion .Topic Resolution
Purpose of Interim The interim program will:
Program • .Ensure that SHB 2060 funds already collected will be distributed into the
- community to meet affordable housing needs at the earliest possible date;
• - Give time to a local committee to complete the program design details for a
local .housing trust fund that will ultimately replace the interim program;
and
• Give the local committee the ability to observe the interim program in
action, allowing there to evaluate the effectiveness of each element of the
program for consideration to be integrated' into the eventual trust fund
program.
Term of Tnterim The interim program will run for a period of. 12 -24 months (depending on the
Program time needs of the local committee to finalize the details of the permanent local
housing trust fund).
Funds available When the Depaitment releases a request for proposals for the use of 2060 funds
(1' quarter 2003), half of the 2060 funds held by the Department will be
retained to begin the fund .capitalization process. The remaining 50% will be
distributed into the community to meet affordable housing needs. Until the
interim program is replaced, half of all available funds (including half of any
interest earned) will always go toward fund capitalization.
Funding rounds • The first funding round will begin the first quarter of 2003. The next funding
round will be in the fall of 2003, .followed by it spring funding round in 2004,
assuming there is enough money in the fiend to make it worthwhile. Eventually,
funding will be semi - annual, in the spring and fall of each year.
Grants vs. Loans
Projects serving 30% AMI and lower will receive grants. Projects serving 30%
AMI to 50% AM1 will receive loans. Exception: Any project receiving funds for
non - capital expenditures will receive a grant.
11 Where information conflicts with the interim program details developed after the October workshop, the details
developed during.the November workshop prevail_
12 Funds available will be determined by gross receipts less 5% administration by the Spokane County Auditor for
collection costs and 40% of net revenue forwarded to the State of Washington Housing Trust Fund, per SHB 2060
legislation. The remaining 60% of net revenues will be used to determine funds available as described above. .
Prepared by: Caroline McDonald Consulting Page 17
December 1002
Discussion Topic Resolution
Loan Terms Flexibility is the key. Loan terms will vary with the proposal. Each proposal will
be reviewed for its financial feasibility, including the project's ability to support
debt. Generally, interest rates (if applicable) will be tied to the federal rate as a
general guideline. Deferrals and forgiveness will be applied as appropriate,
depending on each individual proposal.
Eligible applicants Any legal entity. Exceptions: Although faith -based organizations and churches
may apply, no project will be allowed to restrict participation based on required
religious affiliation or activities. Also, the Department will not accept applications
from individuals for single - family homeowner repair or rent assistance. Such
projects must be sponsored by an organization willing to complete the activities on
a larger scale.
Funding limitations The minirnum request will be $5,000. The maximum request will be limited only
by funds available. However, stakeholders expressed the importance of "spreading
the money around ". Therefore, a project proposing to serve a very limited clientele
and requesting most or all of the funds available would not be evaluated favorably
in most circumstances.
. Term of award* Successful projects will be awarded funds to be used within 12 months from the
time a contract is executed with the County.
Renewable gram Applicants may apply in . subsequent years for additional funding. However,
funding is never guaranteed.
Priorities The following priorities were set during the October 23` workshop:
• Priority #1: Housing rehabilitation and new housing development loans
grants (with preference for those projects serving <30% AMI, persons with
disabilities, or projects in rural areas) — includes homeless shelter
development and rehab
• Priority #2: Housing operations assistance grants. Includes rental housing
and homeless housing
• Priority #3: Rental assistance (short term) including gap rent assistance,
deposits, etc.
Priorities are to be considered thresholds, i.e., in order for a proposal to be eligible
for funding during the first RFP period, it must address one of the three priorities
Listed above_ Priorities may also be used as tiebreakers in the evaluation process.
All other considerations being equal, projects addressing priority #1 will be funded
in favor of projects addressing other priorities.
Set - asides There will be no set -aside amounts for these priorities. Awards will be based on
the quality of the proposals received.
Evaluation Criteria 1. Proposal demonstrates need of population: Provides a general statement of
need including consistency with County and/or City comprehensive plans.
2. Proposal demonstrates financial feasibility_
3. Proposal demonstrates applicant's capacity to undertake and complete project.
4. Soundness of project design: Is, the project feasible? Does it make sense?
Have all other sources of funding been explored?
** As noted earlier, the priorities will be used as threshold requirements and tiebreakers.
Prepared by: Caroline McDonald Consulting Page 18
December 2002
Discussion Topic
Evaluation
Committee
On -going
gualification of
beneficiaries
Award negotiations
Income qualification policy:
Resolution
Evaluation committee composition:
6. Representative of the City of Spokane Valley
7. Representative of the City of Spokane
8. Representative of Spokane County (Community Services or Community
Development Department member) •
9. Representative of SLIFIC (Spokane Low Income Housing Consortium)
10. Representative of the non -profit service provider community
* *Please see discussion below.
Funding requests will be an "all. or nothing" proposition. If an applicant requests
S50,000, the budget should reflect that need and demonstrate feasibility. In order
to. fund many proposals, the Department will not fund everyone at a percentage of
requested funds. Exception: If only $1 5,000 remains in the fund, a $20,000 project
may not be automatically disqualified.
On -going qualification or "certification" of beneficiaries:
There was much debate on this issue. At the crux of the debate was the need to keep the
administrative requirements of the program to a minir um, versus the need for assurance that the
2060 money is being spent on qualified beneficiaries ( <50% AMI). On -going "certification" of
beneficiary income is a time- intensive task, which by its. very nature greatly increases the cost of
administering any program. Several suggestions were made in attempts to satisfy both needs.
However, the stakeholders rnade no final decision. Rather, it was decided that Department staff
would develop a policy.
• In cases Where the proposed project has other contributing sources of income that require
income certification, it will be assurned that income qualification requirements are being
met in conjunction with the administration of the other sources of income and no
additional qualifications or certifications will be required for 2060 funding.
• In cases where there are no other contributing sources requiring income certification, the
Department will:
o In cases of grants: certify that the beneficiaries meet income qualifications at the
time of funding disbursement.
o In cases of loans: certify that the beneficiaries meet income qualifications at the
time of funding disbursal and thereafter on a semi - annual basis for up to 5 years.
The Department reserves the right to do a "spot inspection" of records at any
time during the 5 years.
Prepared by: Caroline McDonald Consulting Page 19
December 2002
!rnpr rn nt tian •
Next Steps
6.. Form local Spokane Trust fear , Affordable 111 :ousing
Committee" (STA I) to:
e, ' Ousel itplernentatian ofTSTA}T and evaluate 21ucccses
and difficulties FES handing is distributed - into the
c ona;nunity.
f UTsing (STAR prograrn as a guideline, develop funding and
administration policies for the final Trust Fund Program
(to be implemented in 12 -24 months from hi 2003),
g- Develop final Trust Fund Program implementation
timciinc-
Date
Formation of committee:
l quarter 2003
Completion of committee
duties:
0' quarter 2004
h- Develop timeline for future stakeholder input and
p]anning-
7. Identify and establish evaluation committee members based on Febnrary 2003
guidelines established above.
8. Develop !STAR application docurnent and release to•public March 2003
for proposals.
At the conclusion of the stakeholder process, the proposed activities, goals, and objectives will be
available for public comment. Final recisions to the proposed program would be made after
public comment is received, The Director of the Housing and Community Development
Departrrient will present the..Board of County Commissioners with I) A description of the process
used in developing draft goals and objectives; 2) The names of individuals, representatives of
organizations, and local governments who participated in the proccsw; 3) A summary of public
commenta; 4) Proposed activities, including goals, objectives, policies, procedures and processes
for implementing the activity; and 4) An analysis and recommendation of the activities and
processes being proposed..
The Manager of the .Housing and Community Development Department, Tim Crowley, has
established a dead[irre of January 31, 2003, for the publication of a notice of funding availability,
Please provide any comments regarding this process in written forrrx or by e-mail to:
Tim Crowley Spokane County Housing and Community Development
721 Ni Jefferson, Suite 200
Spokane, WA 99260
tcrowlei i kanecountv,org
Tipda red - information on the 2060 process may be requested from the same or viewed any time at
the Spokane County website at vraw,s deg- by selecting "Important
Information about SII3 2960 funds" located on the tefl side of the page.
13 This conunittee col![d be identical to the evaluation committee for the ]STA1-[ or another similarly diverse group of
stakeholders overseen by the County.
Prepared by: Caroline McDonald Consulting Page 20
December 2007
DATE ACTION IS
REQUESTED:
APPROVED FOR
COUNCIL PACKET:
City Manager
Dept. Head
Attorney Approve
As To Form
C IBMITTED BY: Cary Driske1,11Cal Walker
RECOMMENDED ACTION: Consider ,ordinanee for approval
ALl'ERNATIVES:
FISCAL IMPACT: $
SOURCE OF FUNDS:
AMOUNT 1110DGET ED:
AMOUNT NEEDED FO) PROJECT:
. CITY OF SPOKANE VALLEY
-
REQUEST :FOR COIJNCIL ACTION
ATTACHMENTS:
TITLE: TYPE OF ACTION:
An Ordinance Establishing Alarm
Regulations for the City of -
Spokane valley X Ordinance
Resoi u tion
Motion
Agreement
Proposed administrative alarm ordinance — . Driskell
June 27, 2003 — draft two
CITY OF SPOKANE V A�� y LE
SPOKANE COUNTY WASHINGTON
TON
ORDINANCE N.
AN ORDINANCE OF.THE CITY OF SPOKANE VALLEY, WASHINGTON,
ESTABLISHING ALAIM REGULATIONS FOR THE
CITY OF SPOKANE. VALLEY •
WHEREAS, false alarms require fire and police agencies to use limited financial
and personnel resources in an . inefficient manner; and
WHEREAS, the City Council desires to establish an alarm ordinance to reduce
the number o.f'fa]se alarms to which fire and police personnel must respond;
NOW THEREFORE, the City Council of the City of Spokane Valley, Washington,
ordains as follows:
Section .1. Intent_ The City of Spokane Valley declares that response. to false
alarms to be an unnecessary, inefficient use of the limited manpower and other resources
of the City Police Department . "Therefore, the intent of this Ordinance is to promote more
effective and efficient law enforcement services to the public through reduction of the
number of responses to false alarms.. .
Section 2. Definitions. In construing the provisions of this Ordinance, except -
where otherwise .plainly declared or clearly apparent from the context. words used in this
Ordinance shall be given their common and ordinary meaning and in addition, the
following definitions shall 'apply:
(1) "alarm system" means any assembly of equipment, mechanical or electrical,
designed to alert law enforcement agencies, the,pub]ic or person of,the curru - n.i sion
or attempted commission. of a crime.
(2) "alarm user" Means any person, business or others entity, which_owns or has
control over any building, structure or facility where an systern is maintained_
(3) "authorized service personnel" means those persons who by reason of their
experience, training or occupation, can demonstrate to the City Police that they are
qualified to inspect and repair alarm .systems.
(4) "false alarm." means the intentional or unintentional activation of any alarm
system that elicits a response from tlie. City Police Department wher no criminal act has
been committed or attempted. The causes of false alarm include, but are not limited to,
the following: equipment malfunction, improper installation or maintenance of
equipment, human error or negligence, or any cause other than the actual commission or
attempted commission of a criminal act. •
1
Proposed administrative alarm ordinance — C. Driskell
June 27, 2003 — draft two
(5) "intentional" means an act done by intention.. A. person acts with intent or
intentionally when he or she acts Nvith the object or purpose to accomplish a particular
result.
Section 3. Prohibited equipment -- Automatic dialing device. Any alarm
system designed to alert any law enforcement - agency of an emergency by providing
unattended automatic dialing to 911 or any public telephone number- of a- law
enforcement agency for the.purpose of transmitting a preprogrammed signal, message or
code shall be prohibited.
• Section 4. Required equipment — Standby power backup source. All alarm
systems shall have a standby backup power supply which will automatically assume the
operation of the alarm, system should any interruption occur in power to the system. The
transfer of power from the primary source to the backup source must occur in a manner
that does not activate the alarm.
Section 5. Audible alarms — Time limit It shall be unlawful to operate an •
audible alarm system which does not shut off within a maximum of thirty minutes from
the time of activation. Shutoff may be accomplished either with an automatic cutoff or by
manual operation. If the alarm system has an automatic cutoff with a rearming phase, the
rearming phase must be able to distinguish between an open and closed circuit and if the
circuit is broken, the system will not rearm.
•
Section 6. Emergency response information.
(1) No person or business shall maintain an alarm system unless:
(A) There is a list filed with the City Police Department of the
telephone numbers at which the person or persons authorized to enter the
prernises where the alarm is located and turn off the alarm can be reached
at all times; or
(13) Such a list is filed with a monitoring service and a twenty -four hour
telephone number for that service is provided to the City Police
Department or clearly displayed outside_ the premises where the alarm is
located.
(2) Upon notification by the City Police Department that his presence is required,
the alarm user or his representative, shall promptly proceed to the scene of the alarm
within a .reasonable period of time and render necessary service: Such service, when
necessary, shall include turning off the alarm and/or opening the alarmed premises so a
search can be made.
(3) Circumstances that may require the alarm user's presence include, but are not
limited to: continual malfunction of an alarm system which causes repeated false alarms
over a short period of .time; evidence at the alarmed - premises indicating a crime was
2
Proposed administrative alarm ordinance — C. Driskell
June 27, 2003 — draft two
committed or attempted and further investigation is necessary; or the premises is not or
cannot be, properly secured.
Section 7. False alarms prohibited — Penalties.
(1) No alarm user shall cause or allow a false alarm.
(2) The intentional activation of a burglary or robbery alarm system for the
purpose of summoning the City Police Department for other than an actual burglary or
robbery or a life - threatening emergency.situation, •shall be punishable as a misdemeanor. •
(3) The first two false alarms from the same location within a .six -month period
shall not constitute a civil infraction. The, third false alarm and each subsequent false
alarm, from the same location within a six -month period, shall constitute a civil infraction
subject to monetary penalty as set forth below:
(a) For the third false alarm, a penalty not exceeding twenty-five dollars
shall be assessed;
(b) For the fourth false alarm a penalty of not more than fifty dollars shall
be assessed;
(c) For the fifth false alarm and each succeeding false alarm, a penalty not
exceeding one hundred dollars shall be assessed.
.(4) Hearing on notices o:finfraction issued pursuant to Section 8(3) shall. be held
at the county district court. The procedures for issuance of a notice of infraction
hearings assessment and payment of monetary penalties, shall be in accordance with the
provisions of RCW 7.80.
Section 8. Enforcement — Policies.
(1) The provisions of this Ordinance shall be administered and enforced by the
City Police Department. The City Police Department is authorized to make and enforce
such rules and regulations as are necessary to implement the provisions of this Ordinance.
Copies of the rules and regulations promulgated under this Ordinance shall be available
to the public at the City Police Department and/ or at City Hall.
(2) The City Police Department may utilize the following procedures and
practices to reduce false alarms:
(a) On the first false alarm within a six-month period, the alarm user may
be required to provide certain information when an alarm is received from
an alarin system under his or her control. This information may include:
(i) The cause of the alarm;
3
Proposed administrative alarm ordinance — C. Driskell
June 27. 2003 — draft two' •
(ii) Any corrective action taken;
(iii) Whether or not the alarm system had been inspected and/or
repaired and the name and address of the person performing the
repairs.
(b) On the second false alarm within a six -month period, the alarm user
shall submit a written report as provided in the previous subsection. In
addition, the City Police Department may require inspections of the alarm
system by authorized service personnel at the alarm user's expense; and
the City Police Department may prescribe corrective action to be taken as
the result of the inspection. •
(c) On the third or subsequent false alarm within a six -month period, the
alarm user shall submit a written report as provided in the previous
subsections. The City Police Department may require inspections of the
alarm system by authorized service personnel at the alarm user's expense;
and the City Police Department may prescribe corrective action to be
taken as the result of the inspection In addition:
(i) The City Police Department may assign a lower response
priority or not respond at all, to alarms received from the alarm
system;
(ii) The City Police Department may order that an alarm system be
disconnected; provided, that no alarm system required by law shall
be ordered disconnected. Notice shall be given to the alarm user at
least forty -eight hours prior to the required disconnection if the
name(s) of the alarm user(s) have been provided to the City Police
Department. Failure to furnish the name(s) of the alarm user(s)
shall constitute a waiver of this notice requirement; and
(iii) An alarm user under this subsection shall be subject to the
provisions of subsection 8(3).
(d) If the policies of ordering alarm systems disconnected and/or no
response by the City Police Department are implemented, provisions shall
be made for allowing the alarm.system to be reconnected and response
reinstated if the alarm user satisfactorily shows that the causes) of the
previous false alarms has(have) been identified and corrected.
(i) Once reconnected, the alarm system shall be on probationary
status for a set period of time not to exceed six months.
(ii) If the repeated instances of false, alarms continue during the
probationary period, the alarm system may again be ordered
disconnected and the policy of no response may be invoked.
4
Proposed administrative alarm ordinance — C. Driskell
June 27, 2003 — draft two •
Section 9. Misdemeanor. The violation of subsection 8(2) shall constitute a
misdemeanor, punishable by imprisonment in jail for up to ninety days or by a fine'of not •
more than one thousand dollars or by both such fine and imprisonment. •
Section 10. Grace period. There shall be a six -month grace period beginning
at the effective date of this Ordinance, during which time no punitive action will be taken
against alarm users violating this Ordinance; provided, the City Police Department may
require alarm users to provide information as 'required by subsection 9(2)(a).
Section 1.1. Distribution of funds. All funds collected from fines imposed by
the county disttict court for violation of this Ordinance shall be distributed as provided in
RCW 3.62.040. Funds in the City current expense fund resulting front fines unposed for
the violation of this Ordinance shall then be used to. reimburse the City Police
Department for the costs of enforcing this- Ordinance.
Section 12. Severability. If any provision of this Ordinance is held invalid, the
remainder of the Ordinance is not affected.
Section 13. 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.
ATTEST:
Passed on this day of July, 2003.
City Clerk, Christine Bainbridge
Approved As To Form:
Interim City Attorney, Stanley M. Schwartz
Date of Publication:
Effective Date:
5
Mayor, Michael DeVleming
. CITY OF SPOKANE VALLEY
:REQUEST FOR COUNCIL ACTION
DATE ACTION IS TITLE: TYPE OF ACTION:
REQUESTED: Columbia Fiber Proposal
APPROVED FOR. . ATTACHMENTS: Ordinance
COUNCIL PACKET:
Resolution
City Manager .
Motion
Dept. Head
Agreement
Attorney Approve
As To Form
�1BMITTED BY: Cary Driskcll .
RECOMMENDED ACTION: Consider Proposed'Amended Offer by Columbia Fiber to Draft Franchise
Agreement •
ALTERNATIVES:
12NATIVES:
FISCAL IMPACT: S
SOURCE OF FUNDS:
AMOUNT BUDGETED:
AMOUNT NEEDED FOR PROJECT:
Proposed changes by CFS
6 -26 -03
PROPOSED AMENDED OFFER BY COLUMBIA FIBER TO DRAFT FRANCHISE
June 27, 2003
(Note: deletions are shown by inclusion within the symbols < >. Additions are shown in
italics.)
Section 4. City Use. The following provisions shall apply regarding City use.
1. Grantee agrees to grant to the City, at no cost to City, an indefeasible right
of use of four (4) dark fiber strands at every location passed by Grantee's facilities
within the boundaries of the City, for sole and exclusive municipal use or
designation, with access to any building or facility designated by the City. Said
dark fiber shall be reserved for use by the City <or its designees> for.
governmental <, educational, or other public benefit >.purposes, PROVIDED, that
as to the fiber resources granted to the City under the terms of this provision, the
City agrees that it will not use such fiber as <for profit> a public utility provider
of telecommunications business service to the public. The City reserves the right
to connect its four dark fiber strands to other fiber network providers, with the
goal of achieving maximum <City -wide> connectivity for <the> City <and its
citizens> business communications. Any such interconnection shall be in a
manner specified by Columbia Fiber engineering requirements.
2. The City shall have the right to access by connection to the four dark fiber
strands at any location served within the City limits by this Franchise. The City
shall provide at least 30 days written notice of intent to access Grantee's service.
3. The City shall pay all costs associated with constructing. any City
connection to Grantee's Franchise service. The City shall <not> pay Grantee
<any fee or> a recurring monthly charge <related to use of the fiber optic lines>
of $20.00 per fiber pair per mile in use by the City unless otherwise specifically
agreed by both the parties in writing.
4. Subject to Subsection 1, designation of either conduit (if underground) or
S fiber shall be at the sole discretion of the City Manager, PROVIDED, Grantee
may submit a written request to the City Manager asking him /her to advise of the
X) City's election of conduit or fiber for a specific installation or area whereupon the
City Manager shall promptly designate a choice. In the absence of a response
from the City Manager, the designation shall be deemed the fiber option. In the
event of expansion, upgrade, or major repair or maintenance operations affecting
conduit installation or transmission capacity, the City may change or exercise its
option as in the instance of an initial installation.
Section 28. Relocation of Facilities. Grantee agrees and covenants, at its sole
cost and expense, to protect, support, temporarily disconnect, relocate or remove from
any street any of its facilities when so required by the City by reason of traffic conditions
or public safety, dedications of new rights -of -way and the establishment and
Proposed changes by CFS
6 -26 -03
improvement thereof, freeway construction, change or establishment of street grade, or
the construction of any public improvement or structure, provided that Grantee shall in all
such cases have the privilege to temporarily bypass, in the authorized portion of the same
street upon approval by the City, any section of their facilities required to be temporarily
disconnected or removed.
IF the City determines that the project necessitates the relocation of Grantee's
then- existing facilities, the City shall:
a)
At least sixty (60) days prior to the commencement of such
improvement project, provide Grantee with wri.tten notice requiring such
relocation; and
b) Provide Grantee with copies of pertinent portions of the plans and
specifications for such improvement project and a proposed location for
_Grantee's facilities so that Grantee may relocate its :facilities in other City
rights -of -way in order to accommodate such improvement project.
c) After receipt of such. notice and such plans and specification,
Grantee shall complete relocation of its facilities at no charge or expense
to the City so as to accommodate the improvement project at least ten (1 0)
days prior to coo? .roenceinent of the project.
Grantee may, after receipt of written notice requesting a relocation of its .facilities,
submit to the City written alternatives to such relocation_ The City shall evaluate such
alternatives and advise Grantee in writing if one or more of the alternatives are suitable to
accommodate the work which would otherwise necessitate relocation of the facilities_ if
so requested by the City, Grantee shall submit additional information to assist the City in
making such evaluation. The City shall give each alternative proposed by Grantee full
and fair consideration_ In the event the City ultimately determines that there is no other
reazouable alternative, Grantee shall relocate its facilities as otherwise provided in this
Section_
<The provisions of this Section shall m no manner preclude or restrict Grantee
from rnaking any arrangements it may deem appropriate when responding to a request for
relocation of itS facilities by any person or entity other than the City, where the facilities
to be constructed by said person or entity are not or will not becoroe City vaned,
operated or maintained facilities, provided that such arrangements do not unduly delay a
City construction project.>
The relocation of Grantees facilities shall be at the sole expense of Grantee,
unless the City Engineer determines, after consultation with Grantee and at Grantee's
request, that the benefit of such improvements or changes to City's right-of-way inures
primarily to adjacent property owners or developers, not to the general public, In
such a case, City agrees to make reasonable efforts to facilitate an agreement between
such adjacent owners or de and Grantee, Where appropriate, as determined by
2
Proposed changes by CPS
6 -26 -03
the City Engineer, the City may withhold approval and/or acceptance of the
improvernents or development until the owner or developer has entered into an
agreement to pay for the costs of relocation.
Section 30. Records. As a condition of this Franchise, and at its sole expense,
Grantee agrees to provide the City with available as -built plans, potential improvement
plans, field locates, maps, plats, specifications, profiles, and records of its facilities within
City rights —of -way. Such documents shall be provided within six months of the
execution of said Franchise by Grantee. These records shall be in a digital electronic
format acceptable to the City, unless the City Engineer deems it to be a hardship to the
Grantee, in which case a hard copy in a format acceptable to the City Engineer shall be
provided. Grantee shall provide the City a plan map updated annually showing all
Grantee's facilities located within the City rights -of -way or public properties.
To the extent such requests are limited to specific facilities at a given location
within the Franchise area in connection with the construction of any City project, Grantee
shall provide to the City, upon. the City's reasonable request, copies of available drawings
in use by Grantee showing the location of such facilities. Grantee shall field locate its
facilities in order to facilitate design and planning of City improvement projects.
Upon written request of the City, Grantee shall provide the City with the most
recent update available of any plan of potential improvements to its facilities within the
Franchise area; provided, however, any such plan so submitted shall be for informational
purposes only, and shall not obligate Grantee to undertake any specific improvements
within the Franchise area.
The parties agree to periodically share Geographic Information System (GIS)
files. Any files provided to Grantee shall be restricted to information required for
Grantee's engineering needs for installation, repair or replacement of facilities that are
the subject of this franchise. Grantee is prohibited from selling any GIS information
obtained from City to any third parties.
Public Disclosure Act: Grantee acknowledges that information submitted to the
City may be subject to inspection and copying under the Washington Public Disclosure
Act codified in chapter 42.17 RCW. Grantee shall mark as "CONFIDENTIAL" each
page or portion thereof of any documentation/information which it submits to the City
• and which it believes is exempt from public inspection or copying. The City agrees to
provide the Grantee with a copy of any public disclosure request to inspect or copy
documentation /information which the Grantee has provided to the City and marked as
"CONFIDENTIAL" prior to allowing any inspection and/or copying as well as provide
the Grantee with a time frame, consistent with RCW 42.17.320, to provide the City with
its written basis for non - disclosure of the requested documentation /information. In the
event the City disagrees with the Grantee's basis for non - disclosure, the City agrees to
3
Proposed changes by CFS
6 -26 -03
withhold release of the requested documentation/information in dispute until the Grantee
can file a legal action under RCW 42.17.330.
4
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
CITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE
COUNTY, WASHINGTON, GRANTING A NON- EX[.lUSIVE FRANCHISE
TO COLUMBI.A F1BER SOLUTIONS TO CONSTRUCT, MAINTAIN AND
OPERA'T'E CERTAIN FACIL1TIES WITHIN THE PUBLIC RIGHT-OF-WAY
AND PUBLIC PROPERTIES OF THE CITY OF SPOKANE VALLEY.
WHEREAS, RCW 35A.47.040 authorizes the City to grant, permit, and regulate non-
exclusive franchises for the use of public streets, bridges or other public ways, structures or
places above or below the surface of the ground for railroads and other routes and facilities for
public conveyances, for poles, conduits,. tunnels, towers and structures, pipes and wires and
appurtenances thereof for transmission and distribution of electrical energy, signals and other
methods of communication, for gas, steam and liquid fuels, for water, sewer and other private
and publicly owned and operated facilities for public service; and
WHEREAS, the grant of such non - exclusive franchises requires the approving vote of at
least a majority of the entire City Council and publication at least once in a newspaper of general
circulation in the City; and
WHEREAS, the Council finds that the grant of the franchise contained in this Ordinance,
subject to its terms and conditions, is in the best interests of the public.
NOW, TREREFORE, the City Council of the City of Spokane Valley, Spokane County,
Washington, does ordain as follows:
Section 1. Definitions. For the purpose of this Ordinance, the following words and
terms shall have the meaning set forth below:. •
1. "City Manager" shall mean the City Manager or his/her designee.
2. "construction" or "construct" shall mean constructing, digging,
excavating, laying, testing, operating, extending, upgrading, renewing,
removing, replacing, and repairing a facility.
3. "day" means a twenty-four (24) hour period beginning at 12:01
a.m. If a thing or act is to be clone in less than seven (7) days, intermediate
Saturdays, Sundays and legal holidays shall. be excluded in the
computation of time.
4. "distribution system, system and lines" used either in the singular
or plural shall mean and include the poles, conductor, pipe, mains, laterals,
conduits, feeders, regulators, meters, fixtures, connections, and all
C:\cpd work files\franchises \Columbia F iber\columbia franchise - draft two - 6- 25- 03.doc
1
Proposed administrative draft — C. Driskell•
June 25, 2003 — draft two
attachments, appurtenances equipment and appliances necessary and
incidental thereto or in any way appertaining to the distribution of the
service or product and which are located within a right -of -way.
5. "facility" used either in the singular or plural shall mean any
tangible component of the transmission and distribution system within the
right of way or on public property, including supporting structures, located
in the operation of activities authorized by this Franchise. The
abandonment by Grantee of any facilities as defined herein shall not act to
remove the same from this definition.
6. "hazardous substances" shall mean any substance or material
defined or designated as hazardous or toxic waste, hazardous or toxic
material, a hazardous, toxic or radioactive substance, or other similar term,
by any federal, state or local environmental statute, regulation, or
ordinance or decision of a state or federal court or administrative agency
or body, presently in effect or that may be promulgated in the future, and
as such statutes, regulations and ordinances may be amended from time to
time.
7. "maintenance, maintaining or maintain" shall mean the work
involved in the replacement and/or repair of Facilities; including
constructing, relaying, repairing, replacing, examining, testing, inspecting,
removing, digging and excavating, and restoring operations incidental
thereto.
8. " Permtttee" shall mean a person or entity who has been granted a
permit by the Permitting Authority.
9. "Permitting Authority" shall mean the City Manager or designee
authorized to process and grant permits required to perform. work in the
rights of way (ie. Obstruction Permits).
10: "product" shall refer to the item, thing or use provided by the
Grantee.
11. "public property" shall mean any real estate or any facility owned
by the City.
12. "right -of -way" shall refer to the surface of and the space along,
above, and below any street, road, highway, freeway, lane, sidewalk, alley,
court, boulevard, parkway, drive, Grantee easement, and/or road right —of-
way now or hereafter held or administered by the City.
13. "streets" or "highways" shall mean the surface of, and the space
above and below, any public street, road, alley or highway, within the City
C:lcpd work fileslfranchises\Columbia Fiberlcolumbia franchise - draft two - 6- 25 -03.doc •
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
used or intended to be used by the general public, to the extent the City
has the right to allow the Grantee to use them.
Section 2. Grant of Franchise. The City of Spokane Valley, a Washington municipal
corporation '(hereinafter the "City "), hereby grants unto Columbia Fiber Solutions, a Washington
(for profit /not- for - profit) corporation (hereinafter "Grantee "), a franchise for a period of
years, beginning on the effective date of this Ordinance, to install, construct, operate,
maintain, replace and use all necessary equipment and facilities to place facilities in, under, on,
across, over, through, along or below the public rights -of -way and public places located in the
City of Spokane Valley, as approved under City permits issued pursuant to this franchise
(hereinafter the "Franchise ").
Section 3. Fee. No right -of -way use fee is imposed for the term of this Franchise.
Any such right -of -way use or franchise fee that may be imposed by subsequent ordinance would
apply to any subsequent franchise, if any, between the parties.
Section 4. City Use. The following provisions shall apply regarding City use.
1. Grantee agrees to grant to the City, at no cost to City, an indefeasible right
of use of four (4) dark fiber strands at every location passed by Grantee's facilities, for
sole and exclusive municipal use or designation, with access to any building or facility
designated by the City. Said dark. fiber shall be reserved for use by the City or its
designees for governmental, educational, or other public benefit purpose, PROVIDED,
that as to the fiber resources granted to the City under the terms of this provision, the City
agrees that it will not use such fiber as a for-profit public utility provider of
telecommunications business service to the public. The City reserves the right to connect
its four dark fiber strands to other fiber network providers, with the goal of achieving
maximum, City -wide connectivity for the City and its citizens.
2. The City shall have the right to access by connection to the four dark fiber
strands at any location served by this Franchise. The City shall provide at least 30 days
written notice of intent to access Grantee's service.
3. The City shall pay all costs associated with constructing any City
connection to Grantee's Franchise service. The City shall not pay Grantee any fee or
recurring monthly charge related to use of the fiber optic lines unless specifically agreed
by the parties in writing.
4. Subject to Subsection 1, the designation of either conduit or fiber shall be
at the sole discretion of the City Manager, .PROVIDED, Grantee may submit a written
request to the City Manager asking him/her to advise of the City's election of conduit or
fiber for a specific installation or area, whereupon the City Manager shall promptly
designate a choice. In the absence of a response from the City Manager, the designation
shall be deemed the fiber option. In the event of expansion, upgrade, or major repair or
maintenance operations affecting conduit installation or transmission capacity, the City
may change or exercise its option as in the instance of an initial installation.
C:1cpd work fileslfranchises\Colunbia Fiberlcolumbia franchise - draft two - 6- 25- 03.doc
3
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
Section 5. Recovery of Costs. Grantee shall be subject to all permit fees associated
with activities undertaken through the authority granted in this Franchise or under ordinances of
the City. Where the City incurs costs and expenses for review or inspection of activities
undertaken through the authority granted in this Franchise or any ordinances relating to the
subject for which a permit fee is not established, Grantee shall pay such costs and expenses
directly to the City. in addition to the above, Grantee shall promptly reimburse the City :for any
and all costs it reasonably incurs in response to any emergency involving Grantee's facilities.
Section 6. Non - Exclusivity. This Franchise is panted upon the express condition
that it shall not in any mariner prevent the City from granting other or further franchises in,
under, on, across, over, through, along or below any rights -of -way, streets, avenues and any
other public lands and properties of every type and description. This and other franchises shall,
in no way, prevent or prohibit the City from using any of its right -of -ways, roads, streets or other
public properties or affect its jurisdiction over them or any part of them. The City hereby retains
full power to make all changes, relocations, repairs, maintenance, establishrnents, improvements,
dedications or vacation of same as the City may deem fit, including the dedication,
establishment, maintenance, and improvement of all new rights -of -way, streets, avenues,
thoroughfares and other public properties of every type and description.
Section 7. Non - Interference with Existing Facilities. The City shall have prior and
superior right to the use of its roads, streets, and alleys, and public properties for installation and
maintenance of its facilities and other governmental purposes, and should in the sole discretion
of the City a conflict arise with the Grantee's facilities, the Grantee shall, at its own expense and
cost, conform to the City's facilities and other government purposes of the City.
The owners of all utilities, public or private, installed in or on such public properties prior
to the installation of the lines and facilities of the Grantee, shall have preference as to the
positioning and location of such utilities so installed with respect to the Grantee. Such
preference shall continue in the event of the necessity of relocating or changing the grade of any
such public properties.
Grantee's system shall be constructed and maintained in such manner as not to interfere
with any public use, or with any other pipes, wires, conduits or other facilities that may have
been laid in the rights of way by or under the City's authority.
Section 8. Right to Roads Not Superseded. The City, in the granting of this
Franchise, does not waive any rights which it now holds or may hereafter acquire, and this
Franchise shall not be construed so as to deprive the City of any powers, rights, or privileges
which it now has, or may hereafter acquire, including the right of eminent domain, to regulate
the use and control of its roads covered by this Franchise, or to go upon any and all City roads
and highways for any purpose including constructing, repairing, or improving the same in any
such manner as the City, or its representatives may elect. The City shall retain full authoritative
power in the same and like manner as though this Franchise had never been granted.
Nothing in this Franchise shall be construed to prevent the City from constructing
facilities, grading, paving, repairing and/or altering any street, or laying down, repairing or
C:1cpd work files \franchises \Columbia Fiberlcolumbia franchise - draft two - 6- 25- 03.doc
4
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
removing facilities or constructing or establishing any other public work or improvement. All
such work shall be done, insofar as practicable, so as to not obstruct, injure or prevent the
unrestricted use and operation of the facilities of the Grantee under this Franchise. lf, however,
any of the Grantee's facilities interfere with City projects, Grantee's facilities shall be removed
or replaced. Any and all such removal or replacement shall be at the sole expense of the
Grantee. Should Grantee fail to remove, adjust or relocate its facilities by the date established by
the City written notice to Grantee, the City may cause and/or effect such removal,
adjustment or relocation, and the expense thereof shall be paid by Grantee.
Section 9. Conunencement of Construction, Construction of the facilities
contemplated by this Franchise may commence within days of the effective date of
this Ordinance, provided that such time limit shall not apply to delays caused by acts of God,
strike or other occurrences over which Grantee has no control. (Alternatively, state that
commencement of construction is not an issue with this franchise. Find out from
franchisee.)
Section 10. Construction Standards. All facilities shall be installed in conformity
with the plans and specifications filed with the City, except in - instances in which deviation may
be allowed in writing by the City Engineer pursuant to application by the Grantee. All plans and
specifications shall specify the class and type of material and equipment to be used, manner of
excavation construction and installation, backfili, erection of temporary structures, erection of
permanent structures, and the traffic control mitigation measures as provided by the Manual on
Uniform Traffic Control Devices, or similar. standards as may be applicable from time to time.
The plans must meet all Federal, State, County and City Codes and the Utility Accommodation
Plan Standards.
Notwithstanding any provision herein to the contrary, any excavations and installations
by the Grantee in any of the public properties within the corporate limits of the City shall be
done in accordance with such reasonable rules, regulations, and resolutions of general
application now enacted or to be enacted by City Council, relating to excavations in public
properties of the City, and authorized by the City Engineer. Said rules, regulations,
authorizations, and resolutions shall be for the purposes of fulfilling the City's public trustee role
in administering the primary use and purpose of public properties, and not for relieving the
Grantee of any duty, obligation, or responsibility for the competent design, construction,
maintenance, and operation of its facilities. Grantee is responsible for the supervision, condition,
and quality of the work done, whether it is by itself or by contractors, assigns or agencies.
Section 11. Special Construction Standards. During any period of work relating to
Grantee's facilities, all surface structures and equipment, if any, shall be erected and used in such
places and positions within or adjacent to public rights -of -way and other public properties so as
to interfere as little as possible with the free passage of vehicular and pedestrian traffic and the
free use of adjoining property. Grantee shall, at all times, post and maintain proper barricades
and comply with all applicable safety regulations during such period of construction as required
by the ordinances of the City, conditions of permits, and laws and regulations of the State of
Washington, specifically including RCW 39.04.1 80 for the construction of trench safety systems.
C:1cpd work file.slfr3nchises\Columbia l:iberlcolumbia franchise - draft two - 6- 25- 03.doc
5
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
If Grantee shall at any time be required, or plan, to excavate trenches in any area covered
by this Ordinance, the Grantee shall afford the City an opportunity to permit other franchisees
and utilities to share such excavated trenches, provided that: (1) such joint use shall not
unreasonably delay the work of the Grantee; and (2) such joint use shall not adversely affect
Grantee's facilities or safety thereof. When deemed appropriate by the City, joint users may be
required to contribute to the costs of excavation and filling.
Section 12. Restoration After Construction. Grantee shall, after abandonment
approved under Section 29 herein, or any other installation, construction, relocation,
maintenance, or repair of facilities within the area of this Franchise, restore the surface of the
right -of -way or public property to at least that standard established by the City Engineer or set by
the conditions of any City- issued right -of -way permit. Grantee agrees to promptly complete all
restoration work and to promptly repair any damage caused by such work within the area of this
Franchise or other affected area at its sole cost and expense.
Section 13. Damage and Non - Compliance. Any and all damage, or injury, done or
caused to City right -of -way, City facilities, or any portion thereof in the construction, operation,
maintenance or repair of Grantee's facilities shall be immediately repaired and reconstructed to
the satisfaction of the City Engineer. In the event the Grantee shall fail, neglect, or refuse to
immediately repair and reconstruct said damage or injury to said City right -of -way or facilities,
the same may be done by the City and the cost and expense shall be immediately paid by the
Grantee to the City.
If it is discovered by the City that Grantee has damaged, injured, or failed to restore the
right -of -way in accordance with this Franchise, the City shall provide the Grantee with written
notice including a description of actions the City believes necessary to restore the right -of -way.
If the right -of -way is not restored within ten (10) days' from written notice, the City, or its
authorized agent, may restore the right-of-way and facilities. The Grantee is responsible for all
costs and expenses incurred by the City to repair and restore the right -of -way and facilities in
accordance with this Franchise. • The rights granted to the City under this section shall be in
addition to those otherwise provided by this Franchise.
Section 14. Protection of Monuments. Before any work is performed under this
Franchise which may affect any existing monuments or markers of any nature relating to
subdivisions, plats, roads, and all other surveys, the Grantee shall reference all such monuments
and markers. The reference points shall be so located that they will not be disturbed during the
Grantee's operations under this Franchise. The method of referencing these monuments or other
points to be referenced shall be approved by the City Engineer. All concrete encased recorded
monuments which have been disturbed or displaced by such work .shall be restored pursuant to
State and Federal standards and specifications. The replacement of all such monuments or
markers disturbed during construction shall be made as expeditiously as the conditions permit,
and as directed by the City Engineer. The cost of monuments orother markers lost, destroyed, or
disturbed, and the expense of replacement of approved monuments and other marker ties which
have been re- established or disturbed shall be borne by the Grantee.
Section 15. Drainage. If the work done under this Franchise interferes in any way
C_lcpd work 6leslfranchises\Columbia Fiber\columbia franchise - draft two - 6- 25- 03.doc
6
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
with the drainage of a City right -of -way, the Grantee shall wholly and at its own expense make
such provisions necessary to eliminate the interference to the drainage to the satisfaction of the
City Engineer.
Section 16. Obstruction Permits Required. Whenever Grantee shall occupy or
excavate in any public right -of -way or other public property for the purpose of installation,
construction, repair, maintenance or relocation of its facilities, it shall apply to the City for a
permit to do so, together with detailed plans and specifications showing the position, depth, and
location of all such facilities in relation to existing rights -of -way, roads, streets, or other public
property, hereinafter collectively referred to as the "Plans." All work within any public rights-
of-way or on other public property shall be pursuant to a valid permit. The facilities shall be
installed or constructed in exact conformity with said Plans except in instances in which
deviation may be allowed by the City, in writing, in response to written application by Grantee.
The Plans shall specify the class and type of material and equipment to be used, manner of
excavation, construction, installation, backlill, erection of temporary structures and facilities,
erection of permanent structures and facilities, traffic control, traffic turnouts and road
obstructions, and all other necessary information including a schedule for the work. During the
progress of the work, Grantee shall not unnecessarily obstruct the passage or proper use of the
rights -of -way. Grantee shall file as -built plans and maps with the City showing the final location
of the facilities. All restoration of rights -of -way, roads, streets, storm drainage and the surface of
other public property shall be in conformance with City standards, and conditions of the permit.
Section 17. Maintenance. Grantee shall provide and put in use all facilities necessary
to control and carry Grantee's products so as to prevent injury to the City's property or property
belonging to any person within the City. Grantee, solely at its own expense, shall repair, renew,
change, and improve.said facilities from time to time as may be necessary to maintain the same
in good condition. Grantee shall not construct its facilities in a manner that _requires any
customer to install cables, ducts, conduits, or other facilities, in, under, or over the City's rights -
of -way.
Section 18. Emergency Response. The Grantee shall, within six months of the
execution of this Franchise by the Grantee, prepare and file with the City and adhere to an
Emergency Management Plan (the "Plan") for responding to any spill, break, or other emergency
condition. The Plan shall designate responsible officials and emergency 24 -hour on -call
personnel and the procedures to be followed when responding to an emergency. When
developing such Plan, the Grantee shall work with the City Engineer and the City's Police
Department to determine when and how the same should be contacted during emergencies.
After being notified of an emergency, Grantee shall cooperate with the City and make every
effort to immediately respond with action to minimize damage and to protect the health and
safety of the public.
In the event the Grantee fails or refuses to promptly take the directed action, or fails to
fully comply with such direction, or if emergency conditions exist which require immediate
action to prevent imminent injury or damages to persons or property, the City may take such
actions as it believes are necessary to protect persons or property and the Grantee shall be
responsible to reimburse the City for its costs and any expenses.
C:\cpd work f les\franchises \Columbia Fiber\columbia franchise - draft two - 6- 25- 03.doc
7 .
Proposed administrative draft — C. Driskell
lune 25, 2003 — draft two
Section 19. Emereencv Work. In the event of any emergency in which any of
Grantee's facilities break, are damaged, or if Grantee's facilities or construction areas are
otherwise in such a condition as to immediately endanger any property, life, health, or safety,
Grantee shall immediately inform the City of the location and condition and shall immediately
take all necessary actions to repair its facilities, and to cure or remedy any dangerous conditions.
Such emergency work may be commenced without first applying for and obtaining a permit as
required by this Franchise. However, this provision shall not relieve Grantee from the
requirement of obtaining any permits necessary for this purpose, and Grantee shall apply for all
such permits not later than the next succeeding day during which the City is open for business.
Section 20. One -Call System. Pursuant to RCW 19.122, Grantee is responsible for
becoming familiar with, and understanding, the provisions of Washington's One -Call statutes.
Grantee shall comply with the terms and conditions set forth in the One -Call statutes.
Section 21. Inspections and Fees. All work performed by Grantee shall be subject to
inspection by and approval of the City. The Grantee shall reimburse the City for all expenses
incurred by the City in the examination, inspection, and approval of Grantee's work. Such
reimbursement shall be in addition to any other fees or charges levied by the City.
Section 22. Safety. The Grantee, in accordance with applicable federal, state and
local safety rules and regulations, shall, at all times, employ ordinary care in the installation,
abandonment, relocation, construction, maintenance, and/or repair, utilizing methods and devices
commonly accepted in their industry of operation to prevent failures and accidents that are likely
to cause damage, injury, or nuisance to persons or property. All of Grantee's facilities in the
right -of -way shall be constructed and maintained in a safe and operational condition. Grantee
shall follow all safety codes and other applicable regulations in the installation, operation, and
maintenance of the facilities.
Section 23. Building Moving. Whenever any person shall have obtained permission
from the City to use any right—of-way for the purpose of moving any building or other oversized
structure, Grantee, upon fourteen (14) days' written notice from the City, shall raise or remove, at
the expense of the Perrnittee desiring to move the building or structure, any of Grantee's
facilities that may obstruct the movement thereof; provided, that the path for moving such
building or structure is the path of least interference to Grantee's facilities, as determined by the
City.
Section 24. Acquiring New Facilities. Upon Grantee's . acquisition of any new
facilities in the rights -of -way, or upon any addition or annexation to the City of any area in
which Grantee retains any such facilities in the rights -of -way, the Grantee shall submit to the
City a written statement describing all facilities involved, whether authorized by Franchise or
any other form of prior right, and specifying the location of all such facilities. Such facilities
shall immediately be subject to the terms of this Franchise.
Section 25. Dangerous Conditions - Authority of City to Abate. Whenever
excavation, installation, construction, repair, maintenance, or relocation of facilities authorized
C:\cpd work fileslfranchises\Columbia Fiberlcolurnbia franchise - draft two - 6- 25- 03.doc
8
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
by this Franchise has caused or contributed to a condition that appears to substantially impair the
lateral support of the adjoining right -of -way, road, street or other public place, or endangers the
public, adjoining public or private property or street utilities, the City may direct Grantee, at
Grantee's sole expense, to take all necessary actions to protect the public and property. The City
rnay require that such action be completed within a prescribed time.
in the event that Grantee fails or refuses to promptly take the actions directed by the City,
or fails to fully comply with such directions, or if emergency conditions exist which require
immediate action, the City may enter upon the property and take such actions as are necessary to
protect the public, adjacent public or private property, or street utilities, or to maintain the lateral
support thereof, and all other actions deemed by the City to be necessary safety precautions; and
Grantee shall be liable to the City for all costs and expenses thereof.
Section 26. •Hazardous Substances. Grantee shall comply with all applicable state and
federal laws, statutes, regulations and orders concerning hazardous substances relating to
Grantee's facilities in the right —of -way. Grantee shall maintain and inspect its facilities located
in the right -of -way. Upon reasonable notice to Grantee and in the presence of an authorized
representative of Grantee, the City may inspect Grantee's facilities in the right -of -way to
determine if any release of hazardous substances has occurred, or may occur, from or related to
Grantee's facilities. This inspection is not to remove the burden of inspection from the Grantee
on a periodic basis of its facilities*for hazardous substances, nor is to remove the responsibility of
the hazardous substance from the Grantee. In removing or modifying Grantee's facilities as
provided in this Franchise, Grantee shall also remove all residue of hazardous substances in
compliance with applicable environmental clean -up standards related thereto. Grantee agrees to
forever indemnify the City against any claims, costs, and expenses, of any kind, whether direct
or indirect, incurred by the City arising out of the release or threat of release of hazardous
substances caused by Grantee's ownership or operation of its facilities within the City's right -of -
way.
Section 27. Environmental. Grantee shall comply with all environmental protection
laws, rules, recommendations, and regulations of the United States and the State of \Vashington,
and .their various subdivisions and agencies as they presently exist or may hereafter be enacted,
promulgated, or amended, and shall indemnify and hold the City harmless from any and all
damages arising, or which may arise, or be caused by, or result from the failure of Grantee fully
to comply with any such laws, rules, recommendations, or regulations, whether or not Grantee's
acts or activities were intentional or unintentional. Grantee shall further indemnify the City
against all losses, costs, and expenses (including legal expenses) which the City may incur as a
result of the requirement of any government or governmental subdivision or agency to clean
and/or remove any pollution caused or permitted by Grantee, whether said requirement is during
the term of the Franchise or subsequent to its termination.
Section 28. Relocation of Facilities. Grantee agrees and covenants, at its sole cost and
expense, to protect, support, temporarily disconnect, relocate or remove from any street any of its
facilities when so required by the City by reason of traffic conditions or public safety,
dedications of new rights -of -way and the establishment and improvement thereof, freeway
construction, change or establishment of street grade, or the construction of any public
C:lcpd work fileslfranchises\Columbia Fiberlcolumbia franchise - draft two - 6- 25- 03.doc
9
Proposed administrative draft — C. Driskell
ituie 25, 2003 — draft two
improvement or structure, provided that Grantee shall in all such cases have the privilege to
temporarily bypass, in the authorized portion of the same street upon approval by the City, any
section of their facilities required to be temporarily disconnected or removed.
If the City determines that the project necessitates the relocation of Grantee's then -
existing facilities, the City shall:
a) At least sixty (60) days prior to the commencement of such improvement
project, provide Grantee with written notice requiring such relocation; and
b) Provide Grantee with copies of pertinent portions of the plans and
specifications for such improvement project and a proposed location for Grantee's
facilities so that Grantee may relocate its facilities in other City, rights-of-way 'in
order to accommodate such improvement project.
c) After receipt of such notice and such plans and specification, Grantee shall
complete relocation of its facilities at no charge or expense to the City so as to
accommodate the improvement project at least ten (10) days prior to
commencement of the project. .
Grantee may, after receipt of written notice requesting a relocation of its facilities, submit
to the City written alternatives to such relocation. The City shall evaluate such alternatives and
advise Grantee in writing if one or more of the alternatives is suitable to accommodate the work
which would otherwise necessitate relocation of the facilities. If so requested by the City,
Grantee shall submit additional information to assist the City in making such evaluation. The
City shall give each alternative proposed by Grantee full and fair consideration. In the event the
City ultimately determines that there is no other reasonable alternative, Grantee shall relocate its
facilities as otherwise provided in this Section.
The provisions of this Section shall in no manner preclude or restrict Grantee from
making any arrangements it may deem appropriate when responding to a request for relocation
of its facilities by any person or entity other than the City, where the facilities to be constructed
by said person or entity are not or will not become City owned, operated or maintained facilities,
provided that such arrangements do not unduly delay a City construction project.
Section 29. Abandonment of Grantee's Facilities. No facility constructed or owned by
Grantee may be abandoned without the express written consent of the City. Any plan for
abandonment or removal of Grantee's facilities must be first approved by the City, and all
necessary permits must be obtained prior to such work.
Section 30. Records. As a condition of this Franchise, and at its sole expense,
Grantee agrees to provide the City with available as -built plans; potential improvement plans,
field locates, maps, plats, specifications, profiles, and records of its facilities within City rights —
of -way. Such documents shall be provided within six months of the execution of said Franchise
by Grantee. These records shall be in a digital electronic format acceptable to the City, unless
the City Engineer deems it to be a hardship to the Grantee, in which case a hard copy in a format
C:\cpd work fileslfranchises\Columbia Fiberlcolumbia franchise - draft two - 6- 25- 03.doc
10
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
acceptable to the City :Engineer shall be provided. Grantee shall provide the City a plan map
updated annually showing all Grantee's facilities located within the City rights -of -way or public
properties.
To the extent such requests are limited to specific facilities at a given location within the
Franchise area in connection with the construction of any City project, Grantee shall provide to
the City, upon the City's reasonable request, copies of available drawings in use by Grantee
showing the location of such facilities. Grantee shall field locate .its facilities in order to
facilitate design and planning of City improvement projects.
Upon written request of the City, Grantee shall provide the City with the most recent
update available of any plan of potential improvements to its facilities within the Franchise area;
provided, however, any such plan so submitted shall be for informational purposes only, and
shall not obligate Grantee to undertake any specific improvements within the Franchise area.
Public Disclosure Act: Grantee acknowledges that information submitted to the City
may be subject to inspection and copying under the. Washington Public Disclosure Act codified
in chapter 42.17 RCW. Grantee shall mark as "CONFIDE.NTLAL" each page or portion thereof
of any documentationlinforrimation which it submits to the City and which it believes is exempt
from public inspection or copying. The City agrees to provide the Grantee with a copy of any
public disclosure request to inspect or copy documentation/information, which the Grantee bas
provided to the City and marked as "CON''FIDE.NTIAL" prior to allowing any inspection and /or
copying as well as provide the Grantee with a time frame, consistent with. RCW 42.17.320, to
provide the City with its written basis for non - disclosure of the . requested
documentation/information. in the event the City disagrees with the Grantee's basis for non
disclosure, the City agrees to - withhold release of the requested documentation /information in
dispute until the Grantee can file a legal action under RCW 42.17.330:
Section 31. Limitation on Future Work. In the event that the City constructs a new
street or reconstructs an existing street, the Grantee shall not be permitted to excavate such street
for a period of five (5) years absent emergency circumstances, unless otherwise agreed by the
City. •
Section 32. Reservation of Rights by City. The City reserves the right to refuse any
request for a .pernut to extend :franchise facilities. Any such refusal shall be supported by a
written statement from the City Manager or his designee that extending the franchise facilities, as
proposed, would interfere with a public use, either current or future.
Section 33. Remedies to Enforce Compliance. In addition to any other .remedy
provided herein, the City reserve the right to pursue any remedy to compel or force Grantee
and/or its successors and assigns to comply with the terms hereof, and the pursuit of any right or
remedy by the City shall not prevent the City from thereafter declaring a forfeiture or revocation
for breach of the conditions herein.
Section 34. City Ordinances and Regulations. Nothing herein shall be deemed to
direct or restrict the City's ability to adopt and enforce all necessary and appropriate ordinances
regulating the performance of the conditions of this Franchise, including any reasonable
C:\cpd work fileslfranchises\Colurnbia Fiberlcolumbia franchise - draft two - 6- 25 -03.doc
11
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
ordinances made in the exercise of its police powers in the interest of public safety and for the
welfare of the public. The City shall have the authority at all tunes to control by appropriate
regulations the location, elevation, and manner of construction and maintenance of any facilities
by Grantee, and Grantee shall promptly conform with all such regulations, unless compliance
would cause Grantee to violate other requirements of law.
Section 35. Vacation. Jf, at any time, the City shall vacate any City road, right-of-way
or other City property which is subject to rights granted by this Franchise and said vacation shall
be for the purpose of acquiring the fee or other property interest in said road, right -of -way or
other City property for the use of the City, in either its proprietary or governmental capacity, then
the City may, at its option and by giving thirty (30) days written notice to the grantee, terminate
this Franchise with reference to such City road, right- of-way or other City property so vacated,
and the City shall not be liable for any damages or loss to the grantee by reason of such
termination.
Section 36. Jndernnification. Grantee hereby releases, covenants not to bring suit and
agrees to indemnify, defend and hold harmless the City, its officers, employees, agents and
representatives from any and all claims, costs, judgments, awards or liability to any person,
including claims by Grantee's own employees to which Grantee might otherwise be im.m.une
under Title 51 RCW, arising from injury or death of any person or damage to property of which
the negligent acts or omissions of Grantee, its agents, servants, • officers or employees in
performing services under this Franchise are the proximate cause. Grantee further releases,
covenants not to bring suit and agrees to indemnify, defend and hold harmless the City its
officers and employees from any and all claims, costs, judgments, awards or liability to any
person, including claims by Grantee's own employees to which Grantee might otherwise have
immunity under Title 51 RCW, arising against the City solely by virtue of the City's ownership
or control of the rights-of-way or other public properties, by virtue of Grantee's exercise of the
rights granted herein, or by virtue of the City's permitting Grantee's use of the City's rights -of-
. way or other public property based upon the inspection or lack of inspection of work performed
by Grantee, its agents and servants, officers or employees in•connection with work authorized on
the City's property or property over which the City has control, pursuant to this Franchise or
pursuant to any other permit or approval issued in connection with this Franchise. This covenant
of indemnification shall include, but not be limited by this reference, to claims against the City
arising as a result of the negligent acts or omissions of Grantee, its agents, servants, officers or
employees in barricading, instituting trench safety systems or providing adequate warnings of
any excavation, construction, or work in any public right -of -way or other public place in
performance of or services permitted under. this Franchise.
Inspection or acceptance by the City of any work performed by Grantee at the time of
completion of construction shall not be grounds for avoidance of any of these covenants of
indemnification. Said indemnification obligations shall extend to claims which are not reduced to
a suit and any claims which may be compromised prior to the culmination of any litigation or the
institution of any litigation.
In the event that Grantee refuses to accept the tender of defense in any suit or any claim,
said tender having been made pursuant to the indemnification clauses contained herein, and said
C:\cpd work fileslfranchises\Columbia Eiberlcolumbia franchise - draft two - 6- 25- 03.doc
12
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
refusal is subsequently determined by a court having jurisdiction (or such other tribunal that the
parties shall agree to decide the matter), to have been a vaongful refusal on the part of Grantee,
then Grantee shall pay all of the City's costs for defense of the action, including all reasonable
expert witness fees and reasonable attorneys' fees and the reasonable costs of the City, including
reasonable attorneys' fees of recovering under this indemnification clause.
Should a court of competent jurisdiction (or such other tribunal that the parties shall agree
to decide the matter.) determine that this Franchise, or work conducted under authority of this
Franchise, is subject t� RCW 4.24.115, then, in the event of liability for damages arising out of
bodily injury to persons or damages to property caused by or resulting from the concurrent
negligence of Grantee and the City, its officers, employees and agents, Grantee's liability
hereunder shall be only to the extent of Grantee's negligence. It is further specifically and
expressly understood that the indemnification provided herein constitutes Grantee's waiver of
immunity under Title 51 RCW, solely for the purpose of this indemnification. This waiver has
been mutually negotiated by the parties.
The provisions of this Section 36 shall survive the expiration or termination of this
Franchise agreement, for a period of three (3) years.
Section 37. Insurance. Grantee shall procure and maintain for the duration of the
Franchise, insurance against claims for injuries to persons or damages to property which may
arise from or in connection with the exercise of the rights, privileges and authority granted
hereunder to Grantee, its agents, representatives or employees. Grantee shall provide a copy of
such insurance certificate to the City for its inspection prior to the adoption of this Ordinance,
and such insurance shall evidence:
1. Automobile Liability insurance with limits no less than $1,000,000 Combined
Single Limit per accident for bodily injury and property damage. Such liability
insurance shall only be required from Grantee for vehicles owned or controlled by
.Grantee. Any contractor hired by Grantee to perform labor in the performance of
this franchise shall be required to obtain auto insurance as stated in this
subsection; and
2.
Commercial General Liability insurance written on an occurrence basis with
limits no less than $1,000,000 Combined Single Limit per occurrence and
$2,000,000 aggregate for personal injury, bodily injury and property damage.
Coverage shall include but not be limited to: blanket contractual;
products /completed operations; broad form property; explosion, collapse and
underground ()CCU); and Employer's Liability.
Any deductibles or self - insured retentions must be declared to and approved by the City.
Payment of deductible or self - insured retention shall be the sole responsibility of Grantee.
Recognizing the term of this Franchise, the City Manager may unilaterally adjust the insurance
liability limits to reflect the degree of risk and market conditions.
The insurance obtained by Grantee shall name the City, its officers, employees and
C:\cpd work fileslfranchises\Columbia Fiber\columbia franchise - draft two - 6- 25- 03.doc
13
Proposed administrative draft— C. Drrskell
June 25, 2.003 — draft two
volunteers as insureds with regard to activities performed by or on behalf of Grantee. The
coverage shall contain no special limitations on the scope of protection afforded to the City, its
officers, officials, employees or volunteers. In addition, the insurance certificate shall contain a
clause stating that coverage shall apply separately to each insured against whom a dairxi. is made
or suit is brought, except with respect to the limits of the insurer's liability. Grantee's insurance
shall be the primary insurance as respects the City, its officers, officials, employees and
volunteers. Any insurance maintained by the City, its officers, officials, ernp]oyees or volunteers
shall be in excess of Grantee's insurance and shall not contribute to it. The insurance certificate
required by this clause shall be endorsed to state that coverage shall not be suspended, voided,
canceled by either party, or reduced in coverage or in limits except after thirty (30) days' prior
written notice by certified mail, return receipt requested, has been given to the City_
Any failure to comply with the reporting provisions of the policies required herein shall
not affect coverage provided to the City, its officers; officials, employees or volunteers_
Section 38. Bond. Before undertaking any of the work, installation, improvements,
construction, repair, relocation or maintenance authorized by this Franchise, Grantee, or any
parties Grantee contracts. with to perform labor in the performance of this franchise, shall, upon
the request of the City, furnish a bond executed by Grantee or Grantee's contractors arid a
corporate surety authorized to operate a surety business in the State of Washington, in such sum
as may be set and approved by the City as sufficient to ensure periorm4ance of Grantee's
obligations under this Franchise_ The bond shall be conditioned so that Grantee shall observe all
the covenants, tens and conditions and shall faithfully perform all of the obligations of this
Franchise, and to repair or replace any defective work or materials discovered in the City's road,
streets, or property.
Section 39. Modification_ The City and Grantee hereby reserve the right to alter,
amend or modify the terms and conditions of this Franchise upon written ageexn.ent of both
parties to such alteration, amendment or modification, .
Section 40- Compliance With New Regulations, The. City reserves for itself the right
to change, amend, rtinodi_fy, or amplify this Franchise to conform to any state statute, or Spokane
County andior City rem lation, Utility A.ccommoda.tion Plan, or right of way regulation, State
and National Codes, Standards, and Regulations as may hereafter be enacted, adopted or
promulgated. If the Grantee fails to comply with its terms and conditions, or if the Grantee fails
to comply with such changes, amendments, modifications, andior amplifications, this Franchise
may be terminated at any time upon ninety (90) days' written notice to the Grantee to terminate
this Franchise and upon termination the City shall have a lien upon all equipment and materials
erected or placed under this Franc:bise, wbic.h Lien may be enforced to reimburse the City for any
reasonable expenses and payments incurred in terminating this 'Franchise and to cure defaults by
the Grantee_ •
. Section 41. Forfeiture and Revocation_ If Grantee willfully violates or fails to
comply with any of the provisions of this Franchise, or through willful or unreasonable
negligence fails to heed or comply with any notice given Grantee by the City under the
provisions of this Franchise, then Grantee shall, at the election of the City, forfeit all rights
C;1cpd work fileslfranchises \Cohuubia Fiberlcolumbia franchise - draft twu - 6 doe
14
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
conferred hereunder and this Franchise may be revoked or annulled by the City after a hearing
held upon reasonable notice to Grantee. The City may elect, in lieu of the above and without any
prejudice to any of its other legal rights and remedies, to obtain an order from the Spokane
County Superior Court compelling Grantee to comply with the provisions of this Franchise and
to recover damages and costs incurred by the City by reason of Grantee's failure to comply.
Section 42. A.ssianment. This Franchise may not be assigned or transferred without
the written approval of the City. For purposes hereof, the grant of any security agreement or
security i.nterest in the facilities of the Grantee to secure any financing or refinancing, shall
constitute an assignment of this Franchise for which written approval would be required. In the
case of the transfer or assignment as collateral for a mortgage or other security instrument in
whole or in part to secure indebtedness, such consent shall not be required unless and until the
secured party elects to realize upon the collateral. Grantee shall provide prompt, written notice to
the City of any such assign lent. •
Section 43. Costs of Publication. The cost of the preliminary and/or final publication
of this Ordinance and/or its Ordinance Summary shall be borne by Grantee:
Section 44. Acceptance. Not later than thirty (30) days after passage and publication
of this Ordinance, the Grantee must accept the Franchise herein by filing with the City Clerk an
unconditional written acceptance thereof Failure of Grantee to so accept this Franchise within
said period of time shall be deemed a rejection thereof by Grantee, and the rights and privileges
herein granted shall, after the expiration of the five day period, absolutely cease, unless the time
period is extended by ordinance duly passed for that purpose.
Section 45. Survival. All of the provisions, conditions and requirements of Sections:
4, 5, 13, 25, 26, 36 and 49 of this Franchise shall be in addition to any and all other obligations
and liabilities Grantee may have to the City at common law, by statute, by ordinance, or by
contract, and shall survive termination of this Franchise, and any renewals or extensions hereof.
All of the. provisions, conditions, regulations and requirements contained in this Franchise shall
further be binding upon the heirs, successors, executors. administrators, legal representatives and
assigns of Grantee and all privileges, as well as all obligations and liabilities of Grantee shall
inure to its heirs, successors and assigns equally as if they were specifically mentioned wherever
Grantee is named herein.
Section 46. Severabilitv. 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. In the event that any of the provisions of
the Franchise are held to be invalid by a court of competent jurisdiction, the City reserves the
right to reconsider the grant of the Franchise and may amend, repeal, add, replace or modify any
other provision of the Franchise, or may terminate the Franchise.
Section 47. Renewal. Application for extension or renewal of the term of this
Franchise shall be made no later than one year before expiration thereof in the event the
time period granted by this Franchise expires without being renewed by the City, the
C:kpd work files\franchises \Columbia Fiberlcolumbia franchise - draft two - 6- 25- 03.doc
15
Proposed administrative draft — C. Driskell
June 25, 2003 — draft two
terms and conditions hereof shall continue in effect until this Franchise is either renewed
or terminated by the City.
Section 48. Notice. Any notice or information required or permitted to be given by or
to the parties under this Franchise may be sent to the following addresses unless otherwise
specified, in writing:
1l
The City: City of Spokane Valley
Attn: City Clerk
11707 E. Sprague
Spokane Valley, WA 99206 •
With a Copy to: City of Spokane Valley
Public Works Director
11707 E. Sprague
Spokane Valley, WA 99206
Grantee: John Everett, General Manager
FiberLink LLC dba Columbia Fiber Solutions
P.O. Box 21001 -99201
Spokane, WA 99201
Phone: (509) 688 -4519
Fax: (509) 688 -4099
Section 49. Choice of Law. Any litigation between the City and Grantee arising
under or regarding this Franchise shall occur, if in the state courts, in the Spokane County
Superior Court, and if i.n the federal courts, in the United States District Court for the Eastern
District of Washington.
Section 50. Non - Waiver. The City shall be vested with the power and authority to
reasonably regulate the exercise of the privileges permitted by this Franchise in the public
interest. Grantee shall not be relieved of its obligations to comply with any ofthe provisions of
this Franchise by reason of any failure of the City to enforce prompt compliance, nor does the
City waive or limit any of its rights under this Franchise by reason of such failure or neglect.
Section 51. • Entire Ageement. This Franchise constitutes the entire understanding
and agreement between the parties as to the subject matter herein and no other agreements or
understandings, written or otherwise, shall be binding upon the parties upon execution and
acceptance hereof. This Franchise shall also supersede and cancel any previous right or claim of
Grantee to occupy the County roads as herein described.
Section 52. Effective Date. This Ordinance shall be in full force and effect on the
official date of incorporation provided publication of this Ordinance or a summary thereof occurs
in the official newspaper of the City of Spokane Valley as provided by law.
C:lcpd work fileslfranchises \Columbia Eiberlcolumbia franchise - draft two - 6- 25- 03.doc
16
Proposed administrative draft — C. Driskcll
June 25, 2003 — draft two
ATTEST:
PASSED by the City Council this day of July, 2003.
City Clerk, Chris Bainbridge
Approved as to Form:
Interim City Attorney, Stanley M. Schwartz
Date of Publication:
Effective Date:
Mayor, Michael DeVieming
C:Icpd work files\ franchises \Colu Fiberlcolumbia franchise - draft two - 6- 25- 03_doc
17
C�
Memo
To: M ayor and Council
From Stan McNutt, Interim Deputy City Manager
Date: June 27, 2003
Re: Cable Advisory Board
City of Spokane Valley
Administration
Some time ago the Mayor and a attended a meeting in Spokane regarding the Cable
Franchise negotiations which were taking place between Spokane City and Comcast
A part of that discussion had to .do with the Regional Cable Advisory Board which is
established by county ordinance and serves as a coordinating group for cable relations and
franchises- It was our request at the time that the City of Spokane Valley be allowed to
participate officially on that Advisory' Board,
Attached is an ordinance relating to cable television, amending the Spokane Municipal Code
that does provide for approximate proportional representation on the Board. I recommend
that the City Council consider approving the document with whatever. amendments deemed
necessary to send it on to Spokane County for their final action.
Our action would be to pass a motion agreeing with the - language of he proposed ordinance
revision- • • - -
1
Stan McNutt
From: Beaumier, Robert [RBeoumieraSpokaneCity -orgj
Tuesday, June 24, 2003 7:15 PM
Cary Driskell; Emacio, James
Kole, Ronald; Feist, Marlene; Stan McNutt; 'Laurie DeVarney'
Subject: regional cable board ordinance
cab 03 06 24
�gional ordinanc.
Attached is a proposed regional cable board ordinance. The Spokane City County
Cable Advisory Board has approved it. It takes effect on adoption by all members (Valley,
County and City of Spokane). I would like to forward it to the City of Spokane City
Council, but it is probably first appropriate to have some indication whether there would
be favorable staff recommendations for the City of Spokane - Valley and Spokane.County, and
if you have any desired changes.
By way of explanation of how the proposal, is drafted, section A follows the existing
pattern, but expands board membership as noted. Currently, the Cable Advisory Board has 11
members of which 7 are City of Spokane appointed and 4 are County appointed. The new
division would be 6 appointees from the City of Spokane, 3 from the Valley and 2 frorr. the
County, considering that the larger majority of former County cable subscribers now live
in the Valley.
til
Section B is a transitional section. Sections C 0 and E are patterned after, the existing
ordinance, which generally has worked well.
Th.5.z Board Chair expressed a special request that we have Valley representatives for the
' ky 21 meeting if that were possible. Please let me know if I can do anything further to
_ Gist,
«cab 03 06 24 regional ordinance.doc >»
> . Confidential & Privileged Lecial Materials
• [`_'our cooperation is requested; no disclosure authorized without
> express consent of client() & City Attorney -)
• Robert G. Beaumier, Jr,
• Assistant City Attorney
• Office of the City Attorney
• City of Spokane
• 808 W- Spokone Falls Blvd.
• 5th Floor, Municipal Bldg.
• Spokane, WA 99201 -3326
• (509) 625 -6225
• FAX {509} 625 -6277
• rbeaumierespokanecity,arg
• NOTICE; This communication may contain privileged or other
> confidential information.' If you are not the intended recipient, or
> believe that you have received this communication in error, please do
> r,ot print, copy, retransmit, disseminate, or otherwise use the
> information. Also, please indicate to the sender that you have
> received this email in error and delete the copy you received. Thank
vou-
1
03 0625 rgb
Ordinance no. C-
An ordinance relating to cable television, amending SMC 10.27.900.
The City of Spokane does ordain:
Section 1. That a new section be added to ch. 10.27 to be numbered
10.27.905 and to read as follows:
10.27.905 Regional Cable Advisory Board.
A. In lieu of a board under section 10.27.900, the City of Spokane,
City of Spokane Valley and Spokane County may establish a
Regional Cable Advisory Board, to be effective upon joint adoption
of this provision by legislative action of the three jurisdictions. The
Regional Cable Advisory Board shall . consist of eleven members,
appointed by the mayors of participating cities, confirmed by
majority vote of the city councils, and by the Spokane County
Board of Commissioners for County appointees. Six members may
be appointed by the City of Spokane, three by the City of Spokane
Valley and two by Spokane County. Members shall be appointed
for staggered three year terms.
13. As of the effective date of this section, there is already a current
City - County Cable Advisory Board for the City of Spokane and
Spokane County of eleven members. The three positions
transferred to Spokane Valley by this action shall continue for
their existing terms and shall be those positions with the shortest
remaining unexpired terms, selected in reverse order of member
seniority, or as designated by the appointing authority in the event
of equal status. Any members replaced by Spokane Valley .. •
appointments. may also continue to serve as ex officio board
members until expiration of their terms or may continue in service
as a voting member if approved to do so by Spokane Valley.
C. Regional cable advisory board members shall serve without.
compensation or per diem. They shall be broadly representative of
the appointing authority's population, with diverse backgrounds
and a reasonable knowledge of cable communications. The regional
cable advisory board shall appoint from its members a chairperson
and a vice chair to serve in absence of the chair. No regional cable
advisory board member shall be affiliated with a local cable
franchisee in any way.
D. Reasonable expenses of the regional cable advisory board,
including any necessary support staff, shall be provided by the
participating jurisdictions through an approved annual budget,
approximately in proportion to board membership, but each
1
participating jurisdiction retains full authority over its staff and
expenditures except also as may be otherwise addressed by a
separately approved interlocal agreement.
E. The regional cable advisory board has discretion to act and
support the participating local governments in the following areas:
1. Consider unresolved complaints and disagreements between
franchisees and subscribers or users of the cable
communications system and issue rulings thereon.
2. Advise on the regulation of rates in accordance with the
provisions of any other applicable ordinance requirements or
laws.
3. Advise regarding general policy relating to the cable services
provided subscribers and the operation and use of access
and leased access channels (if any), with a view to
maximizing the diversity and usefulness of programs and
services to subscribers.
4. Assist in consideration of applications for new, transfer, and
renewal franchises.
5. Perform such other advisory functions as the executive or
legislative branches of participating jurisdictions may from
time to time request, but any functions requested by one
local government which concern areas of another local
government shall require the concurrence of the other local
government.
Passed the City Council
Attest:
City Clerk
2
Council President
Mayor
Approved as to form:
Assistant City Attorney
3
CITY OF SPOKANE VALLEY
SPOKANE COUNTY WASHINGTON
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON,
ESTABLISHING A COMPREHENSIVE POLICY FOR THE PURCHASE AND
DISPOSITION OF GOODS, SERVICES, EQUIPMENT, SUPPLIES, AND PROPERTY
FOR THE CITY OF SPOKANE VALLEY.
WHEREAS, Washington law and City Ordinance govern the procurement of public
goods, services and works; and
WHEREAS, the City Council desires to comply with state law and to engage in best
management practices in all aspects of bidding and purchasing; and
WHEREAS, the City Council desires to establish *purchasing policies to guide the
procurement of goods and services for the City;
NOW TFIEREFORE, the City Council of the City of Spokane Valley, Washington, do
ordain as follows:
Section 1. Definitions. Unless .the context requires otherwise, the terms used in this
ordinance shall have the following meaning:.
A. Contractual Services: Professional and. general service contracts to accomplish a
particular project or service.
B. Bidding: Procedure used to solicit quotations on price and delivery from
prospective suppliers of materials, goods, equipment, and other City property.
C. Bid: An offer, submitted by a bidder to furnish supplies, materials, goods,
equipment and other property in conformity with the specifications, delivery terms and
conditions, and other requirements included in the invitation for bids or otherwise required by the
City.
D. . Bidder: A firm or individual who regularly maintains a place of business,
transacts business, or maintains an. inventory of merchandise for sale in; and is registered or
licensed by the City of Spokane Valley.
E. Responsible Bidder: A bidder who has proven by experience or information
furnished to the satisfaction of the City Manager or his designee that current financial resources,
production or service facilities, service reputation and experience are adequate to make
satisfactoiy delivery of supplies of acceptable quality, equipment, or contractual services and
who has not violated or attempted to violate any provisions of this policy.
F. Purchasing Agent: The Finance Director or any City employee designated by the
Manager to serve as a Purchasing Agent.. .
Page 1
C:U7a;umcnts and Settings\cbainbridge\Local Scttings\Temporary Internet FitedContcnt. 1E5lSRO3CDII1 PurchasingOrdinance6 [11.27.03.doc
G. Requisition: A standard form providing detailed information as to quantity,
description,. estimated price, possible vendors, fund account, signature and other information
necessary to make purchasing decisions.
H. Purchase. Order: Document used to authorize the encurnbrance of City funds
toward the purchase of supplies, materials, equipment and other property.
• I. Adequate Appropriation Balance: Sufficient fund balance existing in the
appropriation item against which the purchase order is to be charged:
J. Public Property. Any item of real or personal property owned by the City.
K. Capital. Equipment. Any equipment of the City having an initial value of five
hundred dollars ($500) or more and an estimated useful life of three (3) or more years.
Section 2. Administration. Under direction of the Finance Director, the purchasing
procedure shall be administered in accordance with this ordinance and other applicable laws.
The Finance Director or designee(s) shall have the responsibility to:
A. Administer and maintain the purchasing system according to the rules and
regulations established or authorized by applicable ordinances and statutes.
13. Coordinate the negotiation, purchase and disposition of all City supplies, materials
and equipment in consultation with City staff.
C. Seek to obtain competition by bidding or negotiation on all City purchases.
D. Prescribe and maintain such administrative policies, procedures and forms as are
reasonably necessary to implement this ordinance.
E. Coordinate the inspection of all City purchased equipment to assure conformance
with specifications. .
F. Ensure that bidders' lists, vendors' catalog files and other records needed for the
efficient operation of the purchasing system are maintained.
G. Maintain the property inventory 'and fixed asset systems of the City.
H. Determine with appropriate City staff the need for any routine preventive
maintenance contracts on various pieces of equipment, and to' establish and maintain said
maintenance contracts.
I. Periodically prepare a comprehensive list of surplus, worn out or obsolete
City -owned equipment. Items which cannot be used or re- assigned to another department shall
be recom.mended for disposal at a public auction.
Section 3. . Competitive Bidding. When the price of supplies, materials, goods or
. • Page2'. •
C:\Documents and Settingskbainbridgc\Local SettingsVfcmporary Internet FileslCantent.IF51S1203CDI ITurchasingOrdinance5 [11.27.03.doc
equipment is estimated to exceed twenty -five thousand dollars ($25,000.00), the following
competitive bid process shall be used.
A. Publication of Notice. For non - public works projects, sealed bids may be invited
by a single publication in the official newspaper at least seven (7) days prior to bid opening and
by mailing invitations to interested bidders who have requested their names be included on a
bidder's list for the type of purchase to be made. Notice of the request shall also be posted in a
public place by the City Clerk. The notice shall generally state the items to be purchased that
plans/specifications may be obtained from the City, and the manner, place, date and time for
submitting a bid to the City.
B. Rejection of Bids. The Finance Director may reject, without cause, any and all
bids and may re- advertise for bids pursuant to the procedures herein described. if no bids are
received, the Finance Director, with approval of the City Council, may negotiate the purchase
with a vendor at the lowest cost possible to the City.
C. Performance Bonds. Before entering into a contract, the City Manager may
require a performance bond in such amount as is reasonably necessary to protect the best . interests
of the City and to ensure complete, proper, and full performance of the contract. A performance
bond shall be required on all public works construction projects.
D. Bid Bonds. The Finance Director may require as a.condition of bidding a bid
bond or a cashier's check in lieu thereof in the amount of 5 percent (5%) of the amount bid. Such
bid bond shall be required on' all formally bid works construction projects. When the
contract is let, all bid bonds shall - be returned to the, bidders except that of the successful bidder
which shall be retained until a-contract is entered into and a bond to perform the work furnished
as provided above. If the successful bidder fails to enter into the' contract in accordance with the
bid and furnish such bond within ten (10) days from •the date which the bidder is notified of
bid award, the bid bond shall be forfeited..
E. Award of Bid. • Except as otherwise provided herein, the City will accept the hid
of the lowest responsible bidder.
F. Award to Other Than Low bidder. When the bid award is not.given to the lowest
bidder, a full and complete statement of the reasons shall be prepared by the Finance Director
and placed in the City file relating to the transaction.
Section 4. Exemptions To Competitive Bidding_Requirements. The following types
of purchases are exempt from competitive bidding requirements:
A._ Sole Source. Purchases which by their nature are not adapted to competitive
bidding, such as purchases which are clearly and .legitimately limited to a single source, and
contracts to repair or to equipment owned by the City which may be more efficiently
accomplished to by a certain person or firm, with previous experience on the equipment.
B. Special Facilities or Market Conditions. Purchases involving special facilities or
market conditions that generally relate to acquisition of unique facilities that may be specially' .
Page 3 _ .
C:1Documents and SettingskbainbridgelLocal Settingsll'cmporary internet Files\ Content.[ E5\ SR03CDit\ Purchasing0rdinanx6 [I].27.03.doc -
manufactured or not otherwise generally available. Special market conditions may require
immediate acquisition based upon a favorable • offer, including but not limited to, liquidation
sales, public or private party offers and similar circumstances where the acquisition can be
obtained at below market value. .
Where the City waives the competitive bidding requirements for sole- source, special
facilities/market conditions, the City Council shall pass a Resolution reciting the factual basis for
the exception.
C. Auction, Closeout, Bankruptcy Sales, If it is determined that supplies, material, or
equipment can he purchased through public auction, closeout sale, bankruptcy sale or other
similar sale at a cost below the market cost, the Finance .Director may authorize said purchase(s).
D. Exchanges- The City may by agreement exchange supplies, materials or
equipment with other public agencies- -
E, Inter -local Agreements in Letting of Coiatracts.for Commodities or Services. The
City Manager may enter into joint purchase agreements with any and all other public agencies
within the state for the purchase of any commodity or service as permitted by state law, where it
is determined by the Manager to be in the best interest of the City.
F_ Emergency PurckaSeS. In the event that an emergency should arise after office
hours which emergency requires immediate action on the part of the City department involved
for the protection of the best interests of the City, or should such a situation arise on a Saturday.•
Sunday or holiday and where it is not possible or convenient to reach the City Manager, any
necessary purchase shall be made by the City department For which the purchase is necessary,
The purchase shall be reported to the 'Finance Director at the first of the next business day.
Publication notices may be waived for emergency purchases as provided by law. However,
authorized employees must demonstrate a reasonable effort to contact two or more vendors for -
price quotations.
G. Pett Cash The Finance Department may maintain a petty cash fund of up to one
thousand dollars {$1,000 }.to help eliminate the issuance of purchase orders and claims vouchers
for small items needed immediately from vendors not 'having open purchase orders. No single
petty cash purchase shall exceed fif y.doll . ($50 ) in emergencies. All requests for petty
cash funds or reimbursement of petty expenditure - shall be reconciled by a receipt or paid
invoice alo with a completed petty cash form. Reimbursements and reconciliations of petty
cash funds shall be made Within 30 days of the transaction. No personal checks shah be cashed
out of the Petty Cash Fund.
H. Real .Property. Acquisition of real property is exempt from the competitive
bidding requirements set 'forth in this Ordinance, Upon approvaJ. of the . Council, the City
Manager.may proceed to acquire real property through negotiation_ Such negotiations shall be
based upon a fair market value appraisal of the property. The City shall riot pay more than fair
market value for any real property without prior City Council approval.
I- Small Purchases, The procurement of supplies, materials, goods and equipment
Page 4
C:1Docwrjents and SeEtinglcbainbridge\Local Seuingsacmporary InternehFileskContcntli5 %SRb3C1]II P' urchasingOrdittanccG [L].23.03.doc
under $7,500 in value may be procured as the City Manager or designee(s) as deemed appropriate
to secure the most efficient and cost - effective purchase for the City.
J. Purchases Between $7,500 and $25,000. Material, equipment or contractual
services other than engineering and architectural services, the cost of which is between seven
thousand five • hundred dollars ($7,500) and twenty-five thousand dollars ($25,000), may be
procured through telephone and/or written quotations, proposals or bids on forms prescribed by •
the Finance Director. Three documented quotations shall be sufficient to determine a competitive
price for any such purchase except for items that can only be obtained from a single source. Said
purchases shall be awarded to the lowest responsible bidder.
Section 5. Prohibited Practices. The following types of . purchasing practices are
hereby prohibited and may result in disqualification of the bid.
A. Collusion Among Bidders. Any agreement or collusion among • bidders or
prospective bidders to either buy or sell or fix prices in restraint - of free competition. Such
bidders may be subject to exclusion from future bidding with the City when determined by the
Finance Director to be in the best interest of theCity.
B. Disclosure of Formal Bid Contents. Any disclosure of information contained in
the sealed bid prior to bid opening. Notwithstanding anything herein to the contrary, all bids
submitted by bidders taking advantage of any information revealed contrary to this section shall
at once become null and void.
C. Gratuities. In accordance with high standards of behavior, the acceptance of any
gift or gratuity in the form of cash, merchandise or any other thing of significant value by an
official or employee of the City, from • any vendor or contractor, or prospective vendor or
contractor.
D. Employee Owned Businesses. Obtaining City goods or services from businesses
in which City officials, employees or their, immediate family members have a majority ownership
interest or otherwise exceed the "interests "described in RCW Chapter 42.23.
E. Sale of Materials and. Supplies. The City acquiring goods or services for any
private party, or selling its materials or supplies to City officials, employees, or the public except
when said materials have been declared surplus and disposed of as provided herein.
Section 6. Disposition of Public Property. Public property shall be disposed of in the
following manner:
A. .Definition. "Public Property" as defined herein means any property or equity
interest in real or personal property held or owned by .the City:
B. Surplus Property. Upon recommendation of a Department Director, the Finance
Director may declare property surplus upon one or more of the following criteria:
1. The City has or soon will have no practical efficient, or appropriate use
-
Page 5
C: Documents and Settings\ebainbridgc.Local Settings\Temporary Internet Files\Content.lE5\SR03CDII PurchasingOrdinance6 [11.27.03.doc
for the property, nor will it have such a use for the property in the near future.
2. The purpose served by the property can be accomplished by use of a better,
less costly, or more efficient alternative.
3. The purpose served - by the. property or its use no longer exists as
determined by a change of policy evidenced by an ordinance, or resolution of the City Council.
4. The property is damaged, worn out otherwise inoperable and the cost of
repairing the sane is unwise or impractical.
C. Sale of Property. The Finance Director is authorized to sell surplus property in
the follow manner:
1. • I:f a Depalltnent Director has control or supervision over City personal
property which is deemed surplus to City use, the Finance Director shall be notified, who shall in
turn notify Department Directors or other City representatives and provide notice of potential
disposition. If any such person- desires to acquire and use the proposed surplus property, the
property may be transferred to the requesting Department Director, or other authorized
representative. •
2. If no request for use of proposed surplus property is received, the Finance
Director may proceed to direct the disposal of the sa ue by public auction, bid, or other. method of
sale on terms deemed to be in the best interest of the City.
3. Surplus personal property which is unsellable because of obsolescence,
wear and tear, or other reasons may be dismantled, if necessary, and sold as scrap. Surplus
personal property which has no marketable value or use may be discarded as refuse.
. 4. • If the proposed surplus property is real property, notice of the proposal to
declare the same surplus shall be given to the CityCouncil.
5. The decision to declare surplus real property shall rest solely with the City .
Council. If the City Council declares the real property as surplus, the Finance Director shall
secure a market value appraisal of the property and proceed to sell the same by public auction or
through the formal bidding procedures the City Manager deems to be in the best interest of the
City.
. D. Trade of Real Prone . Real property may be traded under the :following
conditions.
1. If the Finance Director determines that the real property declared surplus.
under this section could be sold for a greater consideration or benefit to the City if something
other than cash were taken as consideration, then' the Finance Director may invite prospective
purchasers to tender consideration either cash or in -kind or a combination of both. Upon receipt
of a bid tendering consideration in=kind, and'prior - to accepting such bid, the Finance Director
shall make a report setting forth for the benefits of such trade. This report shall be made to the
Page 6
C: \Documents and Settings\cbainbridgc\Local SettingslTemporary Internet Files\ Content.I451SRO3CDIITurchutingC dinan c6t1].27.03.doc
City Council at a regular Council meeting 'and the report shall be open to public inspection.
2. Before accepting any bid containing in -kind • consideration, an adequate
appraisal must have been made by a qualified independent appraiser.
3. If the City Council finds that the bid containing the in -kind consideration,
has more value or benefit to the .City than any other bid submitted, • the Finance Director may
accept the bid containing in -kind consideration.
F. Lease of Public Property. When specifically provided for in the City budget, the
City Manager or designee may authorize the lease or sublease of any property, including real
property, under such terms and conditions as the City Manager may deem desirable, fair and
appropriate, either by use of negotiations or bidding in the best interest of the City. Leases of
real property shall not be granted for a period of more than five (5) years, unless otherwise
authorized by the City Council. -
Section 7. Severability. If any section, sentence, clause, or phrase of this ordinance
should be held to be invalid or unconstitutional, such decision shall not affect the validity or
constitutionality of any other section, sentence, clause, or phrase of this ordinance.
Section 8. Effective Date. This ordinance shall be in full force and effect on the
official date of incorporation provided publication of this ordinance. or a summary thereof occurs
in the official newspaper of the City as provided by law.
ATTEST:
Passed by the City Council of the City of Spokane Valley on , 2003.
Christine Bainbridge, City Clerk
Approved as to Form:
Interim City Attorney, Stanley M. Schwartz
Date of Publication :
Effective Date:
Mayor, Michael DeVleming
• Page 7 •
C:IDocumcnts and Setiingslcbainbridga ocal Settings \Temporary Internet Files\ Content. iE51SRO3CDI11PurehasingOrdinance6 [1].27.03.doc
. ORDINANCE NO. CITY OF SPOKANE Al E VALLEY
SPOKANE COUNTY, WASHINGTON
AN O.RDI? NCE OF THE TTY OF SPOK.20E VALLEY, SPOKANE CO1JN'TY,
WASHINGTON, REPEALING ORDINANCE NO 12 AND GRANTING CONTRACT
• AUTHORITY TO THE CITY MANAGER.
WHEREAS, during the incorporation of the City. Ordinance No- 12 was enacted by the
City Council to provide limited purchasing and contracting authority. to the City Manager for the
purchase of services;
W4 .REAS, to properly manage the procurement of goods, services and works on behalf
of the incorporated City of Spokane Valley, and for.the convenience of persons and entities who
provide such goods, services or works,'the City Council desires to grant and expand the contract
authority of the City Manager to enter into contracts without obtaining individual approval for
each contract from the Cite Council, providing the expenditure is within the scope of the City -
budget;
WHEREAS, the execution of such. contracts shall be on forms approved by 'the City
Council through Resolution in accord with City Ordinance and State law-
NO S, THEREFORE, , the City Council of the City of Spokane Malley, Spokane county,
Washington, do ordain as follows:
Section 1. repeal, Ordinance No. 12 is hereby repealed in its entirety.
Section 2. Contract Award from Small .Works R.oster, After following the process
set forth in Ordinance No. 11, the City Manager is authorized to award and execute contracts_for
public works projects in amounts established by Council Resolution- -
Section 3. Architectural En veering Services. After following the process set forth
in Ordinance No. 22, the the City Ivlanaget is authorized to enter into professional service'
agreements for the procurement of architectural. and engineering services in amounts established
by Council Resolution,
Section 4. General Services. For acquisition of general services, the City Manager,
following review of qualified consultants or service providers is authorized to enter into
professional services agreements in amounts established by Council Resolution.
Section 5. Acquisition of Supplies, Mateiials, Goods and Equipment- For acquisition
of supplies, materials, goods and equipment. the City Manager after following the procedure or
exception to the competitive bidding process 'set forth in Ordinance No. , is authorized to
enter into agreements in amounts established by Council Resolution. -
C:1Doeuntsnts and SedineobainbridgesLocal Settings \Ternpora,y Internet
Files Contra LIEVI.ODE.Jar!XQW[ tcpealOrd t 2andGrant CvI,trthorityb1f 1.27.03.doc 1
Section 6. Rules and Policy, The City Manager may develop rules, policies, and
procedures to implement this Ordinance. All adopted rules, policies, and procedures shall be
filed with the City Clerk,
Section 7. everabilitt. 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 8. Effective Date. This Ordinance shall be in full force and effect on the
official date of incorporation provided publication of this Ordinance or a summary thereof occurs
in the official newspaper of the City as provided by law,
ATTEST:
Passed on•this day of June, 2003,
City Clerk, Chris Bainbridge
Approved As To Form:
Interim City Attorney, Stanley M. Schwartz
• Date of Publication:
Effective Dale;
Mayor, Mi chael Deleming
a'sDacurnents ii d Settingskcbaiabridge \Local Ser ingslremporary Internist •
Files\ Content_ LESIGDERIXQTARepea10rd1 2aodGran1CMAEnharity61 3],Z3.03_dw • 2
CITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
RESOLUTION NO. 03-
A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON, ESTABLISHING SIGNATURE LIMITS WITH
RESPECT TO AGREEMENTS MADE ON BEHALF OF THE CITY.
WHEREAS, pursuant to Ordinance, the City has established procedures for the purchase
of goods, supplies, materials and equipment, architectural and engineering services and the
procurement of public works from the small works roster;
WHEREAS, to facilitate the business of the City and provide for the convenience of
persons and entities who provide goods or services to the City, the City has approved certain
form agreements by Resolution;
WHEREAS, the City Manager, as the Chief Executive Officer of the City, is authorized
pursuant to State law- to conduct and manage .the adiinistrative- affairs of the City which include
entering into contracts on behalf of the City; and
WHEREAS, to facilitate the administrative operations of the City, the Council establishes
the following limits with respect to the signature authority of the City Manager.
NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley,
Spokane County, Washington, as follows:
On behalf of the City of Spokane Valley, the City Manager pursuant to Ordinance and
State law is authorized to execute contracts in the following amounts.
Description • Amount
1. Public Works - Small Works Roster
2. Architectural and Engineering Services
3. General Services
4: Acquisition of Supplies, Materials, Goods
and Equipment
$200,000.00
$100,000.00
$100,000.00
$50,000.00
The above amounts shall not be exceeded without City Council appro.val.
Adopted this day of • , 2003. .
City of Spokane Valley
Mayor Michael DeVleming
C:1Documcnts and SettingslcbainbridgclLocsil Settings\Tempornry Internet Fitcs\ Consent. lE51 GDEJWXQBIReso lution03 {06- 27- 03)[1j.DOC
ATTEST:
Interim City Clerk, Ruth Muller
Approved as to Form: •
Interim City Attorney, Stanley M. Schwartz
C:1Documents and Settingskebaiobridge\Loca1 Settings\Temporary Internet FileslContenLIE51QDE.R VXQB\ R.esolution03- (o5- 27- 03)[1].DOC