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2003, 10-14 Regular MeetingTuesday, October 14, 2003 CALL TO ORDER PLEDGE. OF ALLEGIANCE AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING CITY HALL AT REDWOOD PLAZA 11707 East Sprague Avenue, First Floor Council Requests All Electronic Devices he Turned Oft During Council Meeting INVOCATION Pastor Steve Famwonh, Livingwatcr Community Church ROLL CALL APPROVAL OF AGENDA INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS COMMITTEE, BOARD, LIAISON SUMMARY REPORTS Council Agouti 10 - 14 - 03 Regular Mating Page 1 of 2 ]MAYOR'S REPORT: PUBLIC COMMENTS For members of the Public to speak to the Council regarding matters NOT an the Agenda. Please state your name and address for the record and limit remarks to three minutes. 1. PUBLIC HEARING: Budget Revenues/Fee Schedule for 2004 (1) Open Public Hearing (2) Citizen Comments on Proposed Fee Schedule (3) Close Public Hearing 2. CONSENT AGENDA Consists of items considered routine which are appmved as a group. A Councilmember may remove an item from the Consent Agenda to be considered separately. a. Approval of Regular Council Meeting Minutes of September 23. 2003 b. Approval of Study Session Minutes of October 7, 2003 c. Approval of Claims: $1,590,142.79 d. Approval of Payroll: $134,242.15 NEW BUSINESS 3. Nuisance Abatement Ordinance No. 03 -083— Second Reading [public comment] 4. Bond Ordinance No. 03 -084 - First Reading [public comment) 5. Proposed Resolution No. 03 -049 Extending Annexation for One year to Fite Districts No. 1,8,9 [public comment] 6. Motion Consideration: Clarification of Intent and Reaffirmation of Planning Commission Appointments 7. Motion Consideration: Hotel/Motel Ratification of Tourism Allocations 6:00 P.M. PUBLIC COMMENTS (Maximum of three minutes please; state your name and address for the record) ADMINISTRATIVE REPORTS: [no public comment] 8. Community Development Block Grant (CDBG) Project Ideas 9. Draft lnterlocal Agreement for Commute Trip Reduction Program INFORMATION ONLY: f no public commentl 10. Minutes of Planning Commission 11. Status of Previous Public Comments/Concerns: ADJOURNMENT FUTURE SCHEDULE Regular Council Meetings are held the 2' and 4 Tuesdays of the month, beginning at 6:00 p.m. Council Study Sessions are held on the 1", f and Sth Tuesdays of the month, beginning at 6:00 p.m. Other Upcoming Meetines/Events: Wednesday. October 15, 2003 — Association Washington Cities Regional Meeting, 6:00 p.m., The Davenport Hotel, 10 S. Post Street Thursday, November 6, 2003 — Joint Meeting: City Council and Spokane Valley Planning Commission, 6 :00 p.m., Spokane Valley Council Chambers Wednesday, November 12, 2003 — Regular Council Meeting (NOTE: Nov 11, 2003 Regular meeting day jails on holiday. Veteran's Day — meeting moved to Wednesday, Nowntber 12) Wednesday, November 12, 2003 — Public Hearing on Spokane I'alldy Budget, 6:00 p.m. during Regular Spokane I•alley City Council Meeting Council Agenda 1O-14-03 Rsgulsr Mating Page 2 01'2 Meeting Date: 10 -14 -2003 City Manager Sign -off: CITY OF SPOKANE VALLEY Request for Council Action Item: Check all that apply: Li consent ❑ old business ❑ new business x public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Public Hearing — Revenues for 2004 Budget -- 2004 Fee Schedule GOVERNING LEGISLATION: State Law PREVIOUS COUNCIL ACTION TAKEN: Discussion at Study Session October 7 BACKGROUND: State law requires the City to hold a hearing on our expected revenues for the 2004 budget. We have discussed 2004 revenues at study sessions during the last few months. 2004 will be the first year that we levy property taxes. Our 2004 estimates are based on our experience during 2003 and estimates provided by the State of Washington and the Municipal Research and Services Center. We have significantly reduced our 2004 estimates of Fines and Forfeitures based on our collections in 2003. OPTIONS: This hearing is required by law. The council could modify the revenue projections and /or fee schedule if changes were desired. RECOMMENDED ACTION OR MOTION: A motion to accept the 2004 revenue projections and fee schedule is suggested. BUDGET /FINANCIAL IMPACTS: Significant reductions in revenues and/or the fee schedule could require reductions in 2004 budgeted expenditures. STAFF CONTACT: Finance & Admin. Services Director, Ken Thompson 1011012cC 9:29AM General Fund Revenues City o f Spokane Valley 2004 Budget Detail Revenues by Type Property Tax Property Tax - City $ 6,880.000 Properly Tax - Library 2,150,000 9,030.000 Sales Taxes Sales Tax 11,000,000 Sales Tax - Criminal Justice 920,000 11,920,000 Gambling Taxes Punch Boards & Pull Tabs 110,000 Bingo & Raffles 30,000 Card Games 550,000 690.000 Leasehold Excise Tax 5.000 Franchise Fees 640.000 State Shared Revenueq MVET Criminal Justice - Population 11,100 Criminal Justice Area #1 14,134 Criminal Justice Area #2 20,191 Criminal Justice Area #3 20,191 Criminal Justice Area #4 17.200 DUI - Cities 12,000 Liquor Board Excise Tax 296.000 Liquor Board 492,000 882,816 Service Revenues Building Permits 506,000 Plumbing Permits 34,000 Grading Permits 7,000 Mechanical Permits 34,000 Demolition Permits 1,000 Misc. Permits & Fees 160,000 Plans Check Fees 197.000 939.000 Fines and Forfeitures Fines & Forfeits - Traffic 150,000 Other Criminal Non- Traffic Fines 250,000 400,000 Refreation Proaram Chatge$ Activity Fees (To use a recreational facility) 9,000 Program Fees (To participate in a program) 220,000 229,000 Investment Interest Investment Interest 6,000 Sales Tax Interest 6,000 Propeny Tax Interest '6,000 18,000 Transfers Transfer from Street Fund 42,500 Transfer from Capital Projects 80,000 122.500 Total General Fund Revenue $ 24,876.316 10 Other Fund Revenues 103 Trails & Paths Fund Motor Fuel (Gas) Tax 107 Hotel /Motel Fund HotellMotel Tax City of Spokane Valley 2004 Budget Detail Revenues by Type 101 Street Fund Motor Fuel (Gas) Tax 1,194,960 Interfund Interest 75,000 1,269,960 102 Arterial Street Fund Motor Fuel (Gas) Tax 542,000 204 Debt Service - LTGO 03 Facilities District Revenue Debt Service Transfer from Capital Projects and Special Capital Projects 301 Capital Projects Fund REET 1 - 1st .25 Percent 401 Sewer Fund Transfer from Street Fund 501 Equipment Rental & Replacement Fund Workstation Charges Pool Car Charges Vehicle Replacement Charges 10110/2003 029 AM 11 5,040 380,000 600,000 200,000 800,000 840,000 302 Special Capital Projects Fund REET 2 - 2nd .25 Percent 840,000 303 Street Capital Projects Transfer from Arterial Street Fund 600,000 Transfer from Special Capital Projects 200,000 Proceeds from LT Debt 2,430,000 3,230,000 402 Stormwater Management Fund Stormwater Management Fee 747,500 88,200 5,560 30,694 124,454 510 Risk Management Fund Employment Security Transfers 7,500 Risk Management Services • 130,000 137,500 Total Revenues $ 33,792,770 Building Permit, total valuation $ I - $500 $23.50 eliminated — included in valuation to $25,000 Building Permit, total valuation $501 to $2,000 $23,50 for $500, + $3.05 each additional $ 100 eliminated — included in valuation to $25 Building Permit total valuation to $25,000 $69.25 for first $2,000 + $15 for each additional $1,000 l Building Permit, total valuation $25,001 to $50,000 S391.25 for first $25 + $10.10 for each additional $1,000 Building Permit, total valuation $50,001 to $100,000 $643.75 for first $50,000 + $7 for each additional $1,000 Building Permit, total valuation $ 100,001 to $500,000 $993.75 for first $100,000 + $5.60 for each additional $1,000 Building Permit, total valuation $500,001 to 1,000,000 $3,223.75 for first $500,000 + $4.75 for each additional 1.000 Building Permit, total valuation $1 million & up $5,608.75 for first $1 million ÷ $3.15 for each additional $1,000 Except: Private garages (wood frame) $19.00 sq ft. Except: Private garages (masonry) $22.00 sq. ft. Except: Pole Buildings $19.00 sq. ft. $15.00 sq. ft. Except: Open carport, decks, porches sheds under 200 sq. ft. $45.00 eliminated — included in min. basic building permit fee min. basic building permit fee $35.00 $69.25 early start agreements (foundations 25% of bldg permit fee $50.00 tens,orary certificate of occu.anc fast track permits not allowed hourly rate set for city em loyees $47.00 signs mounted on buildings $45.00 sign and pole mounting $65.00 PLUMBING CODE: basic fee per each permit $35.00 S7.50 basic fee each supplemental permit unit fees: for each plumbing fixture $6.00 unit fees private sewage disposal systems . . S20.00 unit fees: water heater $6.00 unit fees industrial waste pre- treatment interceptor $15.00 unit fees: repair or alternate water piping, drainage or vent piping, each fi x ture $6.00 TYPE OF FEE OR CHARGE EX —' - A FEE RESOLUTION DRAFT CHART OF PROPOSED FEES AND FEE CHANGES Draft Chart, Pce Resolution Exhibit A for 2004 DRAFT CURRENT FEE PROPOSED CHAN Page I of 11 unit fees: lawn sprinkler system on any one meter $25.00 unit fees: for atmospheric type vacuum breaker each $6.00 unit fees: backflow protective device $6.00 unit fees: medical gas per outlet $6.00 unit fees: interceptors, each $6.00 MECHANICAL CODE: basic fee for permit issue $35.00 basis fee supplemental permit 57.50 Unit: fee for furnace & suspended heaters to 100,000 btu $12.00 over 100,000 btu $1 5.00 duct work system $10.00 Heat pump & Air conditioner to 3 tons $12.00 3 - 15 tons $20.00 over 15 to 30 tons $25.00 over 30 to 50 tons $35.00 over 50 tons $60.00 gas water heater 510.00 gas piping system, each outlet $1.00 $10.00 gas log, fireplace & gas insert installation appliance vents installation, relocate, replace $10.00 each repairs or additions $15.00 Boilers, compressors & Absorption Systems 3 hp to 100,000 btu or less $12.00 3 - 15 hp 100,000 to 500,000 $20.00 15 -30 hp 500,000 to million btu $25.00 over 30 h. 1 million - 1,750,000 btu $35.00 over 50 hp - over 1,750,000 btu $60.00 $12.00 air handlers: each unit up to 10 cfm each unit over 10000 cfm $15.00 Coolers $10.00 each fan connection to sin_Ie duct 510.00 each ventilation system $12.00 each hood served by mechanical exhaust $12.00 incinerators: installed or relocation - residential $19.00 incinerators: install or relocate commercial $22.00 appliances, each $10.00 unlisted appliances under 400,000 btu $50.00 unlisted apjjiances over400,000 btu $100.00 1 -lood, type 1 $50.00 Hood, type 11 $10.00 Draft Chan, Fee Resolution Exhibit A for 2004 DRAFT Page 2 of 11 I.,P storage tank $10.00 wood or pellet stove insert $10.00 wood stove system free standing $25.00 Residential Removal /Addition 0 New Single Family 0 Tenant Improvement to 10,000 sq ft 535.00 tenant improvement. 10,001 + $45.00 multi- family er bld , S60.00 new commercial & industrial S90.00 Approved plans permit or any other permit S4.50 multi- family projects permit $4.50 for 1`' unit $2.00 each additional unit * ( *forwarded to Wa St Bldg Code Council) DEMOLITION PCRiVII'f Single Family Residence $44.00 + S20.00 for bldg $44.00 treat separately, see below treat separately, see below garage or out tt -er each- septa un ler- �+grettftd-tftfk garak'e or accessory building S20.00 associated with a residence or commercial building septic tank or underground flammable tanks $10.00 Commercial bldg $125.00 S20 for bldg $125.00 treat separately, see above treat separately, see above tarage or out —&14- far- ettelh- septio-er• ♦ nderground -tank IVIISC FEES Hourly rate for misc. inspections $47.00 hourly rate for misc plans check $47.00 $42.00 hourly rate for permit specialist hourly rate for planners $47.00 OVERTIME CHARGES FOR plans checker inspector permit specialist planners 1.5 times their regular rate hourly fees for contracted services according to contract rate hourly rate for special called inspections $47.00 Mobile 1 -tome Location permit & inspection: temporary mobile home $60.00 mfg'd home per section $50.00 plus basement /crawlspacc valuation . erm it fee Draft Chart. Fee Resolution Exhibit A for 2004 DRAFT Page 3 of 11 HOUSE MOVING Class 1,11, 1I1 moving permit $60.00 inspection fee $60.00 + $47.00/hr after I" hr + .50 /mile if bldg moved into Ci Minimum Housing Inspection Fee $55.00 -f $47.00 /hr after 1st hour Minimum investigative inspection fee if permit is required $55.00 SPECIAL INSPECTIONS (requested by owner or tenant) $60.00 fire, wind, mud slide, flood damage clay care $60.00 nursing homes, hospitals, et $60.00 + $47.00 /hr after 1' hour special occupancies $60.00 Excess inspections created by contractor for given project per inspection $47.00 reinspections: residential & commercial $47.00 Condominium conversion plans review & inspection fee $47.00 TEMPORARY TENTS, CANOPIES, AIR SUPPORTED STRUCTURES FOR PUBLIC USE (does not apply to tents less than 200 sq. ft, canopies less than 400 sq. ft, camping tents, or tents used for private, non - commercial events: plans check fee $ 13.00 basic permit fee $60.00 Enclosing deck or patio: basic fee: valuation of project (min $3,000 evaluation) plans examination 20% of basic fee SWIMMING POOLS: (over 5,00 gallons) $50.00 4 plumbing fees Reroof permit based on value of project Change of use of occupancy classification permit $47.00 DRAFT ()ran Chart, Fee Resolution Exhibit A for 2004 Page 4 of 11 GRADING Permit Fees 50 Cubic Yards or less $ 20.00 51 to 100 Cu. Yd. $ 20.00 10110 1.000 Cu. Yd For the first 100 Cu. Yd $ 20.00 Plus $7. for each additional 100 Cu. Yd. 1,001 to 10,000 Cu. Yd. For the first 1,001 Cu. Yds. $ 83.00 Plus $ 6. for each additional 1,000 Cu. Yd. 10,001 to 1 00,000 Cu. Yd. For the first 10,000 Cu. Yds $ 147.00 Plus $ 15. for each additional 10,000 Cu. Yds. 100,001 to 200,000 Cu. Yds. For the 1" 100,000 C. Y. $368.00 Plus $ 15. for each additional 100,000 Cu. Yds. 200,000 or more Cu. Yds. For the 1' 200,000 yds $503.00 Plus $15.00 for each additional 200,000 Cu. Yds. Plans Checking Fees 50 Cubic Yards or less No Fee 51 to 100 Cu. Yds. $ 12.00 101 to 1,000 Cu. Yds. $ 20.00 1,001 to 10,000 Cu. Yds. $ 25.00 10,001 to 100,000 Cu. Yds. For first 10,000 Cu. Yds. $ 25.00 plus $ 7.00 for each additional 10,000 Cu. Yds. 100.001 to 200,000 Cu. Yds. $ 98.00 Plus $6.00 for each additional 100,000 Cu. Yds. 200.001 Cu. Yds or more $158.00 Land Clearing only - (without earth being moved) $ 65.00 FALSE ALARiV..1 FEES for repeated malfunctioning false FIRE alarm in a given 6 -month period i ' alarm no charge 2m a $30.00 $70.00 Putout S70.00 $100.00 4' alarm S120.00 $1 50.00 5' alarm $50.00 + require /tired fire watch FALSE SECURITY ALARM FEES repealed malfimetionim false security alarm in a Riven 6- monl/t period 1 alarm no cltarj'e 2" alarm 570.00 3" alarm SI00.00 4 alarm et subset tl tent 5150.00 FIREWORKS (# max per RCW 70.77) $100.00 + $500 deposit or performance bond + liability insurance $1 million Plans check & inspection fee for new commercial projects not mentioned elsewhere $40.00 DRAFT Drab Chart, Fee Resolution Exhibit A for 2004 Page 5 of I Fire watch service (3 hr minimum, plus hourly thereafter) $140.00 After hour inspections, plans reviews, consultations for projects not requiring a permit. & other special sery ices hours fee: time and a half of the hourly rate Hourly rate $47.00 Plans check - commercial fire alarm, permit plans check & inspection based on value Fire alarm systems - residential - all zones $40.00 fire alarm systems - residential - permit fee $35.00 Sprinkler systems , tenant improvements, less than 10 heads $65.00 Sprinkler systems, tenant improvements, 11 or more heads $85.00 New systems: commercial: plans check, inspection s& permit based on value New systems: residential - each riser plus each plug or head $1.10 Fire extinguisher system $50.00 . + $1.50 each nozzle Standpipe installation Class( and 11 $58.00 Standpipe installation Class 111 $70.00 Fire pump installation $55.00 power generators installation $55.00 Flammable and combustible liquids storage tanks installation: 1. Underground, 1st tank $ 55.00 plus each additional tank on same site S 35.50 2. Above ground tank . $ 55.00 plus each additional tank on the same site $ 35.00 3. Annual permit fee for storage $ 30.00 Hazardous materials storage tanks installation: 1. Less than 500 gallons - each S 75.00 2. 500 - 1,199 gallons each $104.00 3. 1,200 gallons or more _ $147.00 Liquefied petroleum tanks: installation 1, l..ess than 500 gallons $ 84.00 2. 500 - 9,999 gallons $104.00 3. 10,000 gallons or more $147.00 Gaseous oxygen systems installation: 1. Less than 6,000 cubic feet $ 78.00 2. 6,000 - 11,999 cubic feet $ 90.00 3. 12,000 cubic, feet or more $118.00 . Draft Chart, Fee Resolution Exhibit A for 2004 DRAFT Page 6 of 11 Nitrous systems installation: I. plus each outlet Medical gas systems installation: $ 95.00 $12.00 I. Gaseous system $ 90.00 plus each outlet $ 12.00 2 Liquefied systcrn $ 95.00 plus each outlet $ 12.00 Hazardous material recycling system installation: I. 110 gallons or less per day capacity $ 95.00 2. More than 110 gallons per day capacity $1 17.00 Vapor recovery system installation: (per tank) 1. Phase 1 - tank truck and tank $ 90.00 2. Phase 11 - vehicle fueled and tank $115.00 Cryogenic tank installation: (1st tank) $ 95.00 Each additional tank on same site $ 35.00 Removal or abandonment, or any combination thereof, of flammable or combustible liquid storage tanks: 1. First tank (commercial) $ 84.00 2. Each additional tank on the same site (commercial) $ 47.50 3. Contractors permit for removal or abandonment of residential under - ground fuel tanks $ 75.00 Fire Department fee for inspections and follow up. For initial inspection, plans check and follow up inspections as called for in the Fire Code the fire department will be paid 65% of the fee collected for the permit. This payment: will be paid quarterly. COMMUNITY DEVELOPMENT PLATS: Subdivisions' Tentative plat $250.00 eliminated - no such plat preliminary plat $2,000 ± $25.00 /lot final plat $1,000 + $10.00 /lot PLATS: Shore Plats tentative plat $250.00 eliminated - no such plat Preliminary 2-4 lots $500.00 final plat 2 -4 lots $800.00 + $10.00 /lot preliminary plat 5 -9 Tots $1,000 • 4 $25.00 lot final plat 5 -9 lots $500.00 + $10.00 lot Short plat appeal $200.00 I'LAT MODIFICATION subdivision plat $650.00 short plat $265.00 Draft Chart. Fee Resolution I;:xhibit A for 2004 DRAFT Page 7of11 BINDING SITE I'1.:AN $1,500.00 binding site plan modification $1,300.00 binding site change of conditions $650.00 AGGREGATION /SEGR.EGATION Lot line adjustment $100.00 Lot line elimination $100.00 Certificate of exemption $95.00 eliminated — duplicate fee ENVIRONMENTAL REVIEW SEPA Checklist single dwelling (when required) $100.00 all other developments $300.00 appeal of SETA determination $250.00 eliminated — included in appeal of Administrative decision (below) environmental impact statement review . $2,000.00 SHORELINE substantial development permit $800.00 Shoreline conditional use $800.00 eliminated — included in conditional use Shoreline variance $800.00 eliminated — included in public hearing variance appeal local $100.00 eliminated — included in appeal of administrative decision . re a..lication conference $61.00 Critical areas 5300.00 PERMITS Home Occupation Permit S300.00 Conditional Use Permit $500.00 $800.00 Use Permit 0 -90 da�'s 5150.00 _temporary temporary use permit to 30 days 100.00 5250.00 eliminated — see above eliminated — see above temporary use permit 31 - 90 days VARLANC ES administrative $300.00 single family residence $300.00 eliminated — included in public hearing variance signs and all others $750.00 eliminated — included in public hearing variance Public /iearinJ, s SI,500.00 PLAN AMENDMENTS Comp plan amendment $1,500.00 ZONING zoning map amendments (rezone) $1,500.00 zoning & subdivision code text change $500.00 $1,500.00 combining district $1,000.00 PUD tentative plan $250.00 eliminated — included in PUD plan PUD plan 51,500.00 + $25.00 /lot Draft Chart, Fee Resolution Exhibit A for 2004 DRAFT Page8of11 PUD Mod! ' cation 5500.00 PUD minor modilieation $250.00 eliminated— major & minor modilleado33s not 5eparatefy defined in Code PUD major modification 5750.00 eliminated — major & minor modifications not separately defined in Code SITE PLAN REVIEW 5250.00 ,Sims! Vacation n .4, lIcarion 300.00 SIGNS review of permanent sign $150.00 review or to ) rtra.ry si $75-00 5250-00 Code enforcernent violation approval to hearing examiner APPEALS Appeal or decision $200.00 eliminated— included in appeal of Administrative Decision — Jo el!/ vf,-1 rinzhr&ratlye Decision S1,000.00 Appeals of Hearing Exam iner Findings $300.00 _ PUBLIC WO.RiS Commercial tortsl:ruction site engineering review 5250.00 + hourly rate after 5 hrs 5250,00 + hourE , rate after 3 hrs. Residential conscruetion site engineering review Traffic Impact I ees Analysis not available $50.00 4- hourly rate after 1 ' hour PEI m.ITS Right-of-way use permit. (obstruction, utikilies, approach) $50.00 + hours rate after 1 hour Fkoodpfain Permit $50.00 + ]sourly rate after 1'' hotir INSPECTIONS S!ornrwate.r system review 250, Ofhr tar engineerirE and field In spection based o n 8CFU7� time $250-00 Sit fee Stormwater system inspections $50,00 + hour]+ rate after 1`" hour _ Field maniIoring or inspections of gr ,oCling residential sites hourly rare Field inonilor1ng or inspections of trBding non- residential sites hourly rate Commercial, multi family and mufti- lot sites: four (4) hour mini ITILIm $200.00 plus hourly $225.00 plus how'Iv industrial or mineral industrial sites Conditional use permits plus inspection fee $200.00 varihnces hour! . rate shoreline . e:rHiits $250,00 ilus hour! Draii Fee Rtsnlutian Exhibit A For 2004 DRAFT Page 9of11 HOURLY RATE p ublic right of way obstruction permit utility right of way permit approach permit Cash, certified check or bond for right -of -way cleaning ADMINISTRATION COPY FEES: Copies of audio or video tapes, photos, maps or other records ricedin r :production copies of written records copies or annual budget NSF Check PARKS & RECREATION Basic Administrative Fees to be considered when applying rates Picnic Shelter (< 200 2ople). Picnic Shelter Q0+ people) refundable deposit (<200 people) rRefundable dposit (200tpeople) Events — includes pavilion _ Non- profit applications will be considered by the Spokane Valley Parks Dept I1i raIeau Springs Small Shelter & waterfall _ refundable deft (<200 2ople) Miral) eau Meadows shelter (00 people) shelter (200 peop refundable deposit (<200 people) refund deposit 200+ peon} ALLFY MISSION ARENA RENTAL (per weekend - Fri /S(4/81in) Deposit (renter resporrsibk for on- site preparatiol requires fiabililE [Insurance } DRAFT $50.00 $l6.00 4 review & inspection fee at hourly rule $16 -00 + review & inspection fee at hourly rate $25,00 + review & inspection fee at hourly rate $1,000 at cost .15 per page $1 0.00 $25.00 $30,00 admin fee $50.00 refuse fee $30.00 1 50.00 $50.00 $250 -00 l50,00 $80.00 $150,00 (max 4 hours) $50-00 $80.00 $150 $50-00 $250.00 16.00 + review & inspection fee at hourly rate ($25.00 minimum at time of application) 1G.00+ review & inspection fee at hourly rate ($25.00 minimum at time of application) - $25,00 4 review & inspection fee at hourly rate ($25,00 minimum at time of application) $100.00 $50.0 Drat Chart, Fee Resolution Exhibit A for 2004 Page 10 of 11 AQUATICS • tool admission (one 5.1-) $1.00 admi (age 5 and under) free $20.00 ` pool .- Wool punch pass (5 swims) } fx.kend family discount 1 child under 13 free wfpaying adult reservation ( <50 ] 00.001hr., min 2 hours food fee (ifapplicable) $25.00 .... reservation (50-100) $1 /hr -, min 2 his food fee (i ! iiyplicable) _ $50.00 150.00/hr -, min 2 hrs. Reservation (101 to 150) food fee (if applicable $75.00 PFelrt are RenMrrl 525.00 fr Hour,' S.15,00 eaC /i addi tional hoar P1) feAlsiw,f1� 1�(J�0 rafxllyPernif $25.00 Annual! ']Ndoor rise_ Oven km admission 52,00 Indoor pfa mrocrud pro.er1m S20.00 admission (10 err1ri .) room rentals $10/hr., min 3 hr gym rentals, practice games S 15/1 r., min 2 liu's $100.00 gym rentals, events, Glances rental of Western Dance Hall now handled by WDH ' DRAFT Draft CEiarr. f=ee Resolution Exhibit A for 2004 Page I 1 of 11 DRAFT MINUTES City of Spolutne Valley City Council Regular Meeting September 23, 2003 Mayor DeVleming called the City of Spokane Valley Regular Meeting LO order at 6:00 p.m. Attendance: Cuuucilmcmbers: Michael DeV leming, M.+yor Diana Wilhite, Deputy M 3yor Dick Denenny, CoufCilmernber Mike Flanigan, Councilmember Richard Munson, Councilmember Gary Schinnnels, Counci hnember Steve Taylor, Councilmember Staff Present: Nina Regor, Deputy City Manager Stanley Schwartz, Interim City Attorney Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Mike Jackson, Parks & Recreation Director Marina Sukup, Community Development Director Neil Kcrsten, Public Works Director Greg McCormick, Long Range Planning Manager Kevin Snyder, Current Planning Manager Tom Scholtcns, Building Official Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk PLEDGE OF ALLEGIANCE; Mayor DeVleming led the fledge of A]]cgiance- INVOCATION! Pastor Craig Lotze of Victory Faith Fellowship gave the invocation, ROLL CALL: City Clerk Bainbridge called roll. APPROVAL OF AGENDDA; !.f was mowed by Deputy Mayor Wilhite and stconded by Councilinernber ivt,inson fa approve the eig ndln as presented, Dole by Acclamation: In Favor. Ur #unrn:nus- Opposed: None. Ahsfcnt wis_ Node. Motion carried, COMMITTEE, BOARD LIAISON SUMMARY REPORTS: Counc Munson reported that he attended and participated in, Valleyfest: that it was ti fun event, .ras well attended, and that he hopes the event will continue to grow in the Future. MAYOR'S f POR.I', Mayor DeVleming said the "Community Conversation" last week in the Edgec]ift neighborhood was well attended, that tomorrow afternoon the major properties owners in the Uaiversiry City arca will be discussing vision and • possibilities for that area Mayor DeVlerning announced thai i1 appears proper to mark our first holiday season with a special celebration of the lighting of Spokane Valley's community Christmas tree on December 4 in the U -City parking lot. irt.ayor DeVleming said one of the tasks is the purchase of a 30 -foot Christmas tree; that typically a large artificial tree can be in excess of SI00,000, but that a company was located which recently had a tree order cancelled and they are willing to sell the tree to us at the dramatically reduced price of 515,000. Mayor DeVlcrni!7g said those funds must be raised by the end of this month so that the tree can be shipped ttnd set up by December 3. Mayor De Vleming said a number of community leaders and business Cnttnni Minute O•23.03 Pa6c I oC7 I)iwk Approved by Council; DRAFT owners have already stepped forward to aid in the fundraising efforts, and Mayor DeVleming invited Dick Beam to come to the podium. Dick Beam. Treasurer'of Spokane Valley Business Association: said he has been authorized to present a check in the amount of $500.00 to start the "Spokane Valley Presents a Celebration of Light;" that the Central Valley School District has promised a 1,000 -voice choir for the lighting of the tree; and that other details are being planned for the event. Mayor DeVleming thanked Mr. Beam and the Spokane Valley Business Association for their support. Councilmember Flanigan added that funds for the tree purchase are being collected through the Spokane Valley Booster Fund and donations can be left with any branch of American West Bank in the Valley. Mayor DeVleming emphasized that this will be a community - wide project and no tax dollars will be used in this event. Councilmember Schimmels challenged each Councilmember to donate 5100, and submitted his "promise to pay." PUBLIC COMMENTS: Mayor DeVleming asked for public comment on matters not on the agenda. Steve McNulty, 4106 S. Hollow Court: stated that he and several residents (approximately 12 in attendance) expressed concern that apparently the new owner of 4110 S. Hollow Court. is proposing to open and conduct a business from a shop on the property; that Mr. McNulty spoke to Mr. Ferrell, the owner, about a permit in the rear of the yard to conduct the business in the shop; that Mr. McNulty's wife filed a complaint about the proposed commercial use in a residential neighborhood; that Mr. Ferrell has put in additional power and informed Mr. McNulty the use will not be commercial, although Mr. Ferrell's business "Moose Automotive" lists 4110 S. Hollow Court (a copy of the business card and telephone book listing was distributed to the City Clerk); Mr. McNulty requests council and the planning department look into this further. Craig Keaton, 4019 S. Hollow Court: stated his concerns about the proposed activity at 4110 S. Hollow Court; that the street now has heavy equipment use and the street's condition is becoming worn. Mark Broader, 4105 S. Hollow Court: owns the house next to Mr. McNulty and lives directly across the street from the property in question; lends his support to that of Mr. McNulty and Keaton. Deputy City Attorney Driskell said staff will immediately investigate the situation and will report to council at the next council meeting. John Boyd, 4024 S. Forrest Meadows Drive: said when sewer was put in, an effort was made to come to the individual homeowners asking them if they needed anything else before new paving started; that Mr. Boyd believes there is a five year moratorium on tearing up streets after the new paving, but asked that might be looked into. Diane Cortez, representing Catncast, the Edgeclift Community, and Prat Elementary School: those entities are working on a project entitled "Weeds to Seeds," a community service project to help the Edged ift community to clean up the community and neighborhood in removal of garbage, etc., that they are asking for permit fees to be donated as mentioned in a letter she previously sent; and that she will be in touch with council or staff to follow up her request. John Howard, 11616 East Jackson: stated his concern with Eaglepoint Apartments and the apparent lack of parking; also the hill which joins Jackson Sc Wilbur where kids sled during winter, sledding into busy traffic. CONSENT ,AGENDA: After City Clerk Bainbridge read the Consent Agenda, it was moved by Councilmember Taylor and seconded by Deputy Mayor Wilhite to approve the Consent Agenda. Vote btu acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Council Minutes 09 -23.03 Page 2 or7 Date Approved by Council: Mayor DeVleming invited public comment. DRAFT NEW BUSINESS: 2. Ordinance No. 03 -067 Junk Vehicle Second Readint!. After City Clerk Bainbridge read the ordinance title, it was moved by Mayor DeV/enring and seconded by Councilmenrber Taylor to approve ordinance No. 03 -067. Attorney Driskell explained that tonight's draft is an accommodation among the various citizens' views expressed to staff; that a concern was brought to staff regarding Department of Licensing and how that entity would consider the transfer of title at the direction of the City under this ordinance, in that if someone owned more than four vehicles and they were forced to transfer under this ordinance in any calendar year, that the DOL would require them to register as a dealer. Attorney Driskell said he spoke with the DOL who assured Driskell that someone compelled to transfer title under those circumstances would not be considered a dealer. Attorney Driskell then summarized the process up to this point including input from the citizen committee, calls from members of the community, various meetings numerous drafts, input from the planning commission and a public hearing on the matter. Attorney Driskell said he feels the community is satisfied this ordinance accomplishes the goals set out and is not unduly restrictive. Robert Deluge, S. 708 Naylor Road: said his copy of the ordinance has had no changes; that at the public hearing 20 (not two) people gave public testimony against the ordinance, and one person voted in favor; that Inland Empire Car Club Council was to have been contacted and there has been no communication with those car enthusiasts who want this ordinance completely re- vamped; One Gilbert. 6`" d Progress: said he spoke with DOL and the Department of Revenue that he would like to speak to Attorney Driskell to find out who he spoke with Mr. Gilbert was told people cannot sell more than four cars in twelve months unless they are a car dealer. Edgar Lincoln, 8503 E. Boone: said this will substantially bite into the projects he's working on; that he has not been able to work until now due to the economy, that he can't afford to fence off or put those cars in storage; that he has old inoperable vehicles but they are not junk. Attorney Driskell said the copy the gentlemen was referring to was from May and that draft has been substantially changed; the changes since that time are to allow up to two junk vehicles provided they are completely site - screened year - around in certain zones; that that change was made as a direct consequence with the car hobbyists they met with; that several hobbyists at the meeting gave their input and they proposed that this ordinance allow up to three vehicles in certain zones; that State Law allows for two exceptions in the law and this ordinance includes two additional exceptions: up to two vehicles in the zone, and that anyone working on their cars would have up to 60 days to complete the work, and the Community Development Director could grant another 60 day extension. Councilmember Munson added that the comment about twenty people voicing objection to this ordinance was at the May meeting at which time the matter was tabled; that the ordinance was revised and at the next meeting where the ordinance was considered, only two people voiced their opposition to the ordinance. 13111 Gothmann, Chair, Planning Commission: said that the Planning Commission recommended vote was unanimously in favor of the ordinance; and at that meeting opportunity for public comment was allotted and several people were in favor of the ordinance and very few were opposed; that the major misunderstanding of the ordinance might be the definition of "junk vehicle," that classic hobbyists are excluded from the deffinition of "junk vehicle." Vote by Acclamation: In Favor: Unanimous. Opposed: None. .A hs ten tioIts: None. Motion carried. • Council Minutes (19 -23 -03 Pagc 3 of 7 Dale Approved by Council: DRAFT 3. Ordinance 03 -081, Second Reading of Ordinance Amending Hearing Examiner Ordinance. After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Taylor and seconded by Councilmember Schinunels to adopt ordinance 03 -081. Attorney Schwartz added that this ordinance is to modify appellate jurisdiction and changes the procedure regarding review of preliminary plats, and that this ordinance expedites the procedure with respect to review of preliminary plats. Mayor DeVleming invited public comment; none was offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion Carried 4. Ordinance 03 -082 Approving; and Adopting a Corporate Seal — First Reading. After City Clerk Bainbridge read the ordinance by title, it was moved by Deputy Mayor Wilhite and seconded by Councilmember Munson to suspend the rules, move this to a second reading, and adopt Ordinance 03 -082. Deputy City Manager Regor explained that RCW 35A states that each city governed under this optional municipal code may use a corporate seal approved by its legislative body; and this ordinance describes, approves, and adopts the seal design as the corporate seal of the City of Spokane Valley, Washington. Mayor DeVleming invited public comment, none was offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried 5. Proposed Nuisance Abatement Ordinance No. 03 -083 — First Reading. After City Clerk Bainbridge read the ordinance title, it was moved by Mayor DeVleming and seconded by Councilmember Munson to give the ordinance a first reading, and advance it to a second reading on October 14, 2003. Attorney Driskell explained that this is the third of three similar matters before Council (junk vehicles and zoning code compliance were the other two issues); that at the last study session a suggestion was made concerning at, icultural activities being exempt from the dust requirements, and that change has been incorporated into the document; Attorney Driskell briefed council over the changes. Mayor DeVleming invited public comment. Torn Gregory, E. 1090 23 Avenue: said he is in favor of this ordinance; that previously he was a fire district commissioner and received numerous complaints about not keeping fire hydrants clear; suggests changing the title and submitting that to the Fire District if we are going to annex to them so they can have input; that he is a strong proponent of property rights and wants to make sure this will not infringe upon rights of property owners. Diane Quasi, Executive Director Spokane Housing Authority: suggested reviewing City of Tacoma's ordinance for this as she feels it is a model ordinance. Chet Glover, 2423 E. Mansfield: spoke in favor of the ordinance; many site obstructions like Mansfield and Pines; applauds council. Tony Lazcrnis: also spoke in support of the ordinance. Richard Beam, 3626 S. Ridgeview: said he favors the ordinance; also mentioned the City inherited a lot of right -of -way and we should make sure our City rights -of -way are taken care of. Brief discussion then ensued concerning safety issues connected with the right -of -way, including possible involvement with the police and fire departments. Vote by acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 6. Proposed Resolution No. 03 -046 Delegating Hearing Examiner re Dangerous Dog. After City Clerk Bainbridge read the title of the resolution, it was moved by Councilmember Taylor and seconded by Councilmember Munson to adopt Resolution 03 -046. Attorney Driskell explained that this Council Minutcs 69 -23 -03 Page 4 of 7 Date Approved by Council: DRAFT resolution delegates the authority to the hearing examiner, or alternatively to the Board of County Commissioners on dangerous animal matters. It was also mentioned Section 2 should be omitted as the resolution takes effect immediately upon adoption. It was moved by Deputy Mayor Wilhite and seconded by Councilmember Flanigan to amend the motion to include deleting Section 2. Mayor DeVleming invited public comment.; none was offered. Vote to amend the motion: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Vote on the amended motion: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 7. Proposed Resolution No. 03 -047 Providint; for Appointment, Members of the Board of Commissioners and Operational Rules for the Spokane Housing Authority; and Providing for Other Matters Properly Relating Thereto. After City Clerk Bainbridge read the tittle of the resolution, it was moved by Mayor DeVleming and seconded by Councilmember Flanigan to approve Resolution 03 -047. Attorney Schwartz referred the overview to Spokane Housing Association Executive Director Diane Quast, who then explained that a previous resolution was passed recognizing the need and authorizing the Spokane Housing Authority to act on the City's behalf, that the SHA Board of Commissioners recommended staying with a five member Board; the SHA approached the County and asked them to relinquish one of their seats and have that seat as a seat of appointment for Spokane Valley and the County was willing to do so and passed their resolution. Attorney Schwartz also explained that in section 3, a change was made where the. Mayor of Spokane Valley will participate in the joint appointment to one of the board members. In reference to Janet Bastine's appointment, it was mentioned by Diane Quast that Ms. Bastine is beginning her third five -year appointment and that she is a Spokane Valley resident, but that should that seat become vacant, the Mayor of Spokane - Valley will appoint and the Council will confirm, a new board member. Mayor DeVleming invited public comment; none was offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 8. Proposed Resolution No. 03 -048 Accepting 25' Easement from Ted Fournier. It was moved by Councilmember Munson and seconded by Councilmember Denenny to approve Resolution 03 -048. Attorney .Driskell explained that the Fourniers are in the process of buying property adjoining their residential property for in -fill residential development; that this property is one of their acquisitions; they anticipate developing eight residential lots when all property is finally acquired and this easement will allow for construction of an extension of Sinto and allow utilities. Mayor DeVleming invited public comment, and Mr. Fournier said he desires to grant the public street and utilities easement to the City of Spokane Valley. Vote by Acclamation: In favor: Unanimous. Opposed: .None. Abstentions: None. Motion carried. 9. Bond Financing Update. Attorney Mike Ormsby briefed Council on the bond issues and financing as outlined in his September 19, 2003 letter; and said that he will meet with Dr. Livingston of the Community Colleges of Spokane September 30 to discuss the relationship between the Colleges and the City on leasing space in the facility; also that Ormsby is working with Mike Jackson and Nine Regor on other space use and allocation issues, and that he hopes to speak with the Department of Revenue and State Auditor within the next: few weeks. Mayor DeVleming called for a recess at 7:50 p.m. and reconvened the meeting at 8:00 p.m. 10. Budget Proposals from Outside Attencies. Mayor DeVleming explained that this is an opportunity to present to Council as a means for council consideration in next year's budget. The following are the organizations which gave presentations and the amount of funding assistance they requested: (1) International Trade Alliance $35,000; (2) EDC Council Minutes 09 -23-03 Page 5 of 7 Date Approved by Council: DRAFT $100,000; (3) Valley Community Center $4,000; (4) Chase Youth Commission S60,000; and (5) Project Access $102,000. 11. Motion Consideration: Adoption of Citizen Participation Plan. It was moved by Councilmember Flanigan and seconded by Councilmember Denenny to approve the Plan. Director Marina Sukup gave an overview and explained that this is the first step in initiating the City's Comp Plan. Director Sukup also explained that part of the City's role is to determine a vision along with the Planning Commission and the community, establish levels of service, participate in community workshops and dialogue, identify key resources, hold public hearings, and finally approve the Comprehensive Plan. Director Sukup added that the Planning Commission reviewed the Plan and recommends approval. Mayor DeVleming invited public comment; none was offered. Discussion ensued regarding hearing from the community concerning their vision. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 12. Motion Consideration: Initiative Measure No. 841. It was moved by Mayor DeVleming and seconded by Counciltne►nber Munson that the Council collectively support Initiative 841. Mayor DeVleming invited public comment and none was offered. Mayor DeVleming also asked if any member of the public would like to speak against the initiative or comment on the proposed council action. Ted Fournier: said he supports repealing the existing regulations and supports the initiative measure. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. It was moved by Mayor DeVleming and seconded by Councilmember Munson to extend the meeting for an additional thirty minutes. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried PUBLIC COIVhVIENTS: Mayor DeVleming invited public comment on issues not covered in the agenda. Dave Gilbert, 6 and Progress: said he saw the County road crew cleaning the dead vegetation in response to a phone call from a member of the community and wanted to commend the crews for their work; he also mentioned that he made two phone calls recently to City Hall and has not yet had his calls returned. Ted Fournier, 1151 Maxwell: commented on the new, much needed signs on the police department building, and mentioned other signs that are inconsequential and not in good public view; e.g., "Get Hammered Get Nailed," 13. Discussion of Fire Service Options and Proposed Resolution to Extend for One Year Annexation to Fire Districts Nos. .1., 8 and 9. Deputy City Manager Regor explained that the proposed resolution gives options for City fire services; that state law allows a newly formed city to annex into an existing fire district for the year of incorporation, and that temporary annexation may be extended for one additional year to give cities additional time to analyze the various fire service options. Deputy City Manager Regor explained the four options, and said that the draft resolution extends that temporary annexation through 2004. Chief Grover discussed some of the financing issued previously faced by City of Spokane. Attorney Schwartz added that the City of Spokane Valley can fund a fire department out of the general fund through general taxes, although there is a statutory limit on the amount of taxes the city can impose. It was moved by 'Wayor DeVleming and seconded by Couuncilmember Munson to place this resolution on the October 14 council agenda. Councilmember Munson requested that staff bring to the October 14 meeting, staff's recommendation of which option is best and why. In response to an invitation for public comment, Council Minutes 09 -23.03 Page 6 of 7 Dalc Approved by Council: DRAFT Bill Gothmann, speaking on behalf of those few residents in the Valley, said he feels that Fire District: 8 residents are content with District 8 and would like their fire district to stay as is, and that he would encourage the City in the long term to stay with District 8. Vote b) Acclamation: In Favor: Unanimous. Opposed: None. A bstentions: None. Motion carried. It was moved by Mayor .DeVleming and seconded by Councilmember Munson to extend the meeting another 15 minutes. Vote by Acclamation: In Favor: Mayor DeVleming; Deputy Mayor Wilhite, Councilnrenrbers Denenny, Flanigan, Munson, and Schinunelc. Opposed: Councilmember Taylor. Abstentions: None. Motion carried. 14. Street Lighting. Public Works Director Neil Kersten gave an overview of street lighting, said staff is working with the electric companies to understand their policies; discussed monthly charges for street lights, and explained the map showing the location of current lights. Director Kersten also mentioned there are no specific requirements for street lights in the County standards; that the County typically tried to minimize installation of lights from a budgetary standpoint; that the power cost for one Tight is approximately S 180 per year, and varies from provider to provider. Discussion also ensued regarding lighting of arterials and important intersections, light pollution, and lighting bridges and other areas of foot traffic not currently illuminated. 15. CDBC Application Staff Report. Long Range Planning Manager Greg McCormick asked Council if they had any questions regarding his material, and brought council attention to the timeline of events. Councilmember Munson reported that at the last HUD meeting, the county staff that supports this committee had asked the County Commissioners to reduce the number of at -large positions from seven to two and that those two would not be from the Spokane Valley thereby loosing our representation; that he later met with County Commissioner McCaslin and asked her to consider not changing the makeup of the committee until 2005 when our council would then have an opportunity to determine how we intended to participate. 16. 2004 Budget Status Report. Finance and Administrative Services .Director Ken Thompson mentioned that revenues continue to be down from what was projected especially in sales tax, planning and building fees, and fines and forfeitures; he briefly mentioned projections for next year, and reminded Council of the public hearing set for October 14 and that a balanced budget will be brought forward. Director Thompson added that the Finance Commission meeting is scheduled for Thursday at 5 p.m.. As the remainder of the agenda items were for information only, it was moved by Councilmember Flanigan, seconded, and unanimously agreed upon to adjourn. The meeting adjourned at 9:45 p.m. ATTEST: Christine Bainbridge, City Clerk Michael DeVleming, Mayor Council Minutes 09-23-03 Page 7 of 7 Date Approved by Council: Attendance: Councilnrembers: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Steve Taylor, Councilmember Mike Flanigan, Councilmember Richard Munson, Councilmember Gary Schimmels, Councilmember DRAFT IVCINUTES City of Spokane Valley City Council Study Session October 7, 2003, 6:00 p.m. Staff: Nina Regor, Deputy City Manager Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Marina Sukup, Community Development Director Neil Kersten, Public Works Director Mike Jackson, Parks & Recreation Director Cal Walker, Police Chief Greg McCormick, Long Range Planning Manager Chris Bainbridge, City Clerk Mayor DeVleming opened the meeting at 6:00 p.m., welcomed all in attendance, reminded everyone that this is a study session and there will be no public comments, and requested that all electronic devices he turned off for the duration of the meeting. Proclamations: Mayor DeVleming read the "Spokane is Reading" proclamation, and made mention of the upcoming "Walk to School Day" proclamation. Award: Police Chief' Cal Walker introduced Bonnie Abernathy, SCOPE Director, who presented the City with a plaque in appreciation of all the City of Spokane Valley has done for the SCOPE program. 1. Motion Consideration: Motion to Authorize Capital Improvement Bonding up to 52,430,000.00. Deputy City Manager Nina Regor explained that if council chooses to authorize the street bonds, the City will jointly proposed them along with the CenterPlace bonds, which would save on bond issuance costs, and if approved. the bond ordinance scheduled for a first reading on October 14 will include these street bonds. It w'crs moved by Deputy Mayor Wilhite and seconded by Councilmember Flanigan to authorize capital improvement bonding up to 52,430,000, and to incorporate that amount into the aforementioned bond ordinance. Vote by .Acclamation: In Favor: Unanimous. Opposed: Axone. Abstentions: None. Motion carried. 2. Comprehensive Plan Amendments Discussion. Councilmember Gary Schimmels read the following into the record: "On CPA 03 -02, I need to bring something to the attention of the council. After the Planning Commission voted to approve the Comp Plan Amendment on this property, Planning Commission Chairman Bill Gothmann mentioned that it would be nice if that property could be kept undeveloped, since it bordered on the Dishman -Hills Natural Area. Mr. Gothmann basically wondered out loud if the property could be purchased and made part of the Dishman - Hills. Without realizing the impact it could have, 1 told Bill, and later Ian Robertson (another Planning Commission member) that I could put them in touch with the Director of the Dishman -Hills group to see if Dishman -Hills was interested in buying the property. There followed a meeting between Mr. Gothmann, Mr. Robertson, myself and the Director of the Dishman -Hills area to discuss what the options Nvould be to purchase the area. My intent in doine this was merely to introduce the parties. However, since this issue has yet to be decided by the City Council, and to avoid any misunderstanding, I will not take part in any of the discussions or decision making on this issue." Study Session Minutes 10 -07 -03 Page 1 of 4 Odle Approved by Council: DRAFT Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -01, 8915 East Montgomery, requesting a change in five acres from Low Density Residential to Regional Commercial, with the Planning Commission's recommendation to change the area to Community Center and zone B -2. It was moved by Mayor DeVleming and seconded by Councilmember Flanigan to place this hem on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Councilmember Schimmels removed himself from the dais and the room. Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -02, south side of Appleway Avenue, east of Park Road, to change three acres from Neighborhood Commercial to Regional Commercial, with the Planning Commission's recommendation to change to Community commercial and zone B -2. It was moved by Councilmember Munson and seconded by Councilmember Flanigan to place this item on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Councilmember Schimmels returned to the dais. Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -03, west side of Pines Road between Union Pacific Railroad right -of -way and Mansfield Avenue, to change 2.5 acres from High Density Residential to Light Industrial, with the Planning Commission's recommendation to change to Light Industrial and zone I -2. It was moved by Councilmember Munson and seconded by Councilmember Taylor to place this item on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -04, Cataldo Avenue west of Bradley and north of 1 -90 (Golf Dome property), to change 2.6 acres from Low Density Residential to Light Industrial, with the Planning Commission's recommendation to change to Light Industrial and zone 1 -2. It was moved by Mayor DeVleming and seconded by Councilmember Munson to place this item on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -05, west of Pines Road between Broadway and Cataldo Avenue, to change three acres from Low Density. Residential to High Density Residential with the Planning Commission's recommendation to change the southern portion to Medium Density Residential and zone UR -12, with no change on the northern portion of the parcel. It was moved by Councilmember Flanigan and seconded by Councilmember Taylor to place this item on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -06, the north side of Broadway Avenue between Blake and Mamer Roads, to change five acres from Low Density Residential to High Density Residential with the Planning Commission's recommendation to change to High Density Residential and Zone UR -22. It was moved by Mayor DeVleming and seconded by Councilmember Munson to place this item on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion curried. Community Development Director Marina Sukup explained the proposal for File No. CPA 03 -07, the northwest corner of Barker Road and Boone Avenue, to change three acres from Low Density Residential to High Density Residential, with the Planning Commission's recommendation to change the west portion of the property to Medium, Density Residential and zone U12 -12, and change the cast portion of the property to Community Commercial and zone 13 -2. Councilmember Flanigan stated he would like to Study Session Minutes I0 -07 -03 Page 2 of 4 Date Approved by Council: DRAFT know what staff feels Barker will be like in the future as he is uncomfortable with the designation for the urban property and would like a broader viewpoint when this comes on the next agenda. It was proved by Councibnember ."Taylor and seconded by Councilnrember Flanigan to place this item on the next council meeting agenda for formal consideration. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. It was the consensus of Council to bring these items forth on the October 28 council agenda as individual ordinances with opportunity for public comment but not to conduct a public hearing. 3. Comprehensive Plan Housing Element Discussion. Community Development Director Marina Sukup, in her PowerPoint presentation, gave a brief overview of the Housing Element of the Comprehensive Plan, and in her presentation, included the requirements of the Growth Management Act, the adopted Countywide Planning Policies, and an overview of relevant elements of the Interim Plan. 4. Right -of -way and Cross Circulation between Appleway and Sprague. Public Works Director Neil Kersten explained that reasonable street connections are approximately 600 feet in distance, that some of the connections between Appleway and Sprague are between 1500 to 1800 feet in distance, and that there is no real existing right -of -way and the City would have to acquire right -of- way. Director Kersten also discussed a ring -road concept, which is a rather smooth road to easily enable getting around a facility without using city streets. Director Kersten noted staff has not talked to any property owners to gain opinions about where they would like certain cross conmections, or how to fund such a project; that he spoke with TIB and was told for them to consider participation, the streets would have to become arterials; Director Kersten said that he will work with WSDOT and TIB on these issues. Director Kersten added that other options include use of local funds, or LLD projects where the local property owners participate in the project. Other items to consider which were briefly discussed, included the size of signs, foot traffic problems, distance between traffic signals, keeping the one way or changing back to two -way, and all the financial implications of each aspect. Director Kersten said that the TIB has approved phase two funding and is waiting for our decision on the couplet; that staff can examine the one - way versus the two - way option, examine cross - connections to get an estimate of costs, get estimates on signage, and start to analyze the project in terms of the comp plan. Discussion ensued regarding securing an economic impact statement, the various variables connected with such a statement and that perhaps the economic departments at the universities could be of assistance. This item will be brought back to the next study session for further discussion including cost, funding options, property owners' interest, signs, foot traffic, access, and the economic impact study. Mayor DeVleming called for a recess at 7:50 p.ni., and reconvened the meeting at 8:00 p.m. 5. Proposed Resolution for Participation in Commission on Regional Wastewater Treatment Issues. Deputy City Attorney Cary Driskell stated that members of the respective legislative governing bodies met over the past few months to determine the extent the various jurisdictions will be able, and are required to work together on regional wastewater treatment issues, and that although Spokane County adopted a similar resolution, that Council may approve a member to the committee by motion rather than by resolution. It was moved by Mayor DeVleming and seconded by Councilmentber Munson to appoint Councilmentber Denenny as representative on the Governance Committee. After discussion concerning the goals of the committee, it was determined that each councilrnember will consider items such as ownership and rate determination, and bring those ideas back for further discussion at the next study session. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Study Session Minutes W.07 -03 Page 3 of 4 Date Approved by Council: - DRAFT 6. Probation Services ,Disuissio,t. Deputy City Attorney Cary Driskell discussed the background of the probation services and the contract negotiations to date wicli the County, Previously, the County's draft agreement included charging the City of pokaric Valley for every 15 minutes worked, with a cost reflective of a formula; hoitvever, staff continued to ask if the County would reconsider and agree to simply have the County operate probation; the County's response is they want cost recovery on all contracts. Attorney Driskell added that other options include operating our own probation services, contracting with the City of Spokane, combing with other jurisdictions, or discontinuing probation as an .option For offenders. Council directed staff to e.plere all options including the option of directly contracting with the City of Spokane, 7. Mira bean tventerPIacc Update. Deputy City Manager Nina Regor explained that the bond ordinance is scheduled for Council consideration October [4; that staff will be in San Francisco October 16 and 17 for a rating presentation to Moody's and possibly other rating agencies; and that Nlikc Jackson, Mike Ormsby,. Gary Livingston, and Ms. Regor met and the College is willing to sign a letter of intent to make rooms available for regional and cultural activities when riot in use for classes, Interior designer Tonya Huffman then discussed the color boards for the interior and exterior of the building. Et. Budget Discussion, Finance Director Ken Thompson gave a brief update on the 2004 budget and added that a public bearing will be held October 14 an revenue sources- Attention was also brought to the draft chart which will accompany the fee resolution; and that staff continues co work on the formatting of the document. Councilmember Denenny questioned the home occupation permit fee, and Deputy Manager Regor mentioned no comparisons have been performed on home occupations. Councilmernber Denenny also mentioned that staff should be made aware, that if an outside jurisdiction has lower fees that information needs to be brought forward to council's attention. Tr was moved by Mayor De € Oen ling and seconded by Counciltnember Mi €isan to extend the meeting another 10 minutes. Vote by acciarnalioo: In Favor: Unanimous. Opposed. None. Abstentions None. Motion carried. 9. Advance Agenda. The joint meeting of Council and Planning Commission is currently scheduled for October 30. The Growth Management Steering Committee is set for Thursday and one topic will be whether to keep or disband the COMM ittee. Couneilmerribers Munson and "Taylor support that committee disbanding. 10. Council Check -in, Mayor DeVleming encouraged councilmembers to bring copies of ineeting schedules, agendas, and minutes to staff for inclusion in the "Boards and Gommitice" notebook, There being no further business, the meeting adjourned at 9:05 p.m. ATTEST: Christine Bainbridge, City Clerk Study Session Minutes 10.-07 -Q3 Doti' ell] proved by Couoti Michael IDeVleming, Mayor Paee 4 of 4 Meeting Date: 10 -14 -03 City Manager Sign -off: Item: Check all that apply: x consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Claims: Voucher listing total for the weeks of September 19 and 26, 2003 OPTIONS: CITY OF SPOKANE VALLEY Request for Council Action RECOMMENDED ACTION OR MOTION: Approve claims of $ 138,624.34 for or 9 -19 -03 Approve claims of $1,451,518.45 for 9 -26 -03 BUDGET /FINANCIAL IMPACTS: $1,590,142.79 STAFF CONTACT: Ellen Avey ATTACHMENTS Voucher List for 9 -12 -03 and 9 -26 -03 vchlist 09/19/2003 9:42:51AM Bank code : apbank Voucher List Page: 1 Spokane Valley Voucher Date Vendor Invoice PO # Description /Account Amount 3483 9/12/2003 000288 ' INTERNATIONAL CODE COUNCIL 91203 PROFESSIONAL CERTIFICATI '60.00 Total : 60.00 3492 9/17/2003 000070 INLAND POWER AND LIGHT CO 82803 STREET LIGHTING & SIGNAL PO 277.79 Total : 277.79 3493 9/19/2003 000135 AMERICAN PLANNING ASSOCIATION 050281 PROFESSIONAL MEMBERSHIP 309.00 Total : 309.00 3494 9/19/2003 000042 APPLEWAY AUTOMOTIVE GROUP 51403 VEHICLE LICENSE FEES 23.50 Total : 23.50 3495 9/19/2003 000142 BIG LOTS Asst. PARKS & REC PROGRAM SUPP 40.96 Total : 40.96 3496 9/19/2003 000101 CDWG JN15216 30076 PC HARDWARE & UPGRADES 842.81 Total: 842.81 3497 9/19/2003 000292 CLEMENTS, JOSEPH 91603 FACILITY DAMAGE DEPOSIT RE 50.00 Total : 50.00 3498 9/19/2003 000109 COFFEE SYSTEMS INC 16083 COFFEE 113.90 Total : 113.90 3499 9/19/2003 000026 CONTRACT RESOURCE GROUP, INC. 3395 30067 DESK CHAIR 430.24 Total : 430.24 3500 9/19/2003 000035 CORPORATE EXPRESS 45971036 30075 OFFICE SUPPLIES 64.48 Total : 64.48 3501 9/19/2003 000284 CRUCIAL TECHNOLOGY 204943975 30079 PC MEMORY 188.07 Total : 188.07 3502 9/19/2003 000208 GIBSON, JAMES 91203 MILEAGE 143.45 Total : 143.45 3503 9/19/2003 000079 GOSS, SHELLEY 91203 EXPENSE REIMBURSEMENT 47.63 Page: 1 vchlist 09/19/2003 9:42:51 AM Bank code : apbank Voucher List Page: 2 Spokane Valley Voucher Date Vendor Invoice PO # Description /Account Amount 3503 9/19/2003 000079 GOSS, SHELLEY (Continued) Total : 47.63 3504 9/19/2003 000002 H & H BUSINESS SYSTEMS 03103470649 COPY MACHINE LEASE 656.17 Total : 656.17 3505 9/19/2003 000289 HI TECHNIQUE 11277 PC TECH SUPPORT 202.69 Total : 202.69 3506 9/19/2003 000259 HUMANIX 132804 PERSONNEL SERVICES 169.20 Total : 169.20 3507 9/19/2003 000022 INLAND BUSINESS PRODUCTS, INC. 49821 EMPLOYEE ID BADGE 16.22 Total : 16.22 3508 9/19/2003 000033 MCPC 4430589 30072 OFFICE SUPPLIES 181.10 Total : 181.10 3509 9/19/2003 000053 MODERN OFFICE EQUIPMENT 47216 FAX MACHINE DRUM 145.92 Total : 145.92 3510 9/19/2003 000293 MORAN FENCE INC. 3330 INSTALL FENCE 3,127.52 Total : 3,127.52 3511 9/19/2003 000043 NEXTEL COMMUNICATIONS 91003 CELL PHONE CHARGES 764.73 Total : 764.73 3512 9/19/2003 000239 NORTHWEST BUSINESS STAMP 45204 30070 CUSTOM STAMPS 74.53 Total : 74.53 3513 9/19/2003 000243 NORTHWEST SIGN SUPPLY 665124 PLOTTER PAPER 167.06 Total : 167.06 3514 9/19/2003 000036 OFFICE DEPOT 1057 OFFICE SUPPLIES 9.72 218321113 30082 OFFICE SUPPLIES 416.27 Total : 425.99 3515 9/19/2003 000291 PROJECT ACCESS 91603 PROJECT ACCESS PARTICIPA 5,000.00 Total : 5,000.00 Page: 2 vchlist 09/19/2003 9:42: 51 AM Bank code : apbank Voucher Date Vendor 3516 9/19/2003 000024 3517 9/19/2003 000172 3518 9/19/2003 000001 3519 9/19/2003 000167 3520 9/19/2003 000140 30 Vouchers for bank code : 30 Vouchers In this report Finance Director Date RESOURCE COMPUTING INC. SPOKANE COUNTY ENGINEER SPOKANE COUNTY TREASURER • VERA WATER & POWER WALTS MAILING SERVICE apbank I, the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and are unpaid obligation against the City of Spokane Valley, and that I am authorized to authenticate and certify to said claim, Voucher List Spokane Valley Invoice 36046 36047 • 5 90803 various 50598 PO tf Description /Account IT NETWORK LABOR 'IT NETWORK CONSULTING Total : ROAD MAINTENANCE ALCOHOL TREATMENT Total : Total : STREET LIGHTING & SIGNAL PO Total : PRINTING & MAILING SERVICES Total : Bank total : Total vouchers : Page: 3 Amount 3,215.98 2,750.00 5,965.98 110,788.78 110, 788.78 3,485.58 3,485.58 2,432.87 2,432.87 2,428.17 2,428.17 138,624.34 138, 624.34 Page: 3 vchlist 09/2612003 9 :57:14AM Bank code : apbank Voucher 3521 3522 3523 3524 3525 3526 3527 3528 3529 3530 3531 3532 Date Vendor 9/19/2003 000295 9/19/2003 000294 9/26/2003 000037 9/26/2003 000300 9/26/2003 000052 9/26/2003 000142 9/26/2003 000101 9/26/2003 000109 9/26/2003 000035 9/26/2003 000305 9/26/2003 000136 9/26/2003 000298 VALLEYFEST SPOK CNTY SUPERIOR C OURT AMERICAN LINEN BADEMIAN, REGINA BEST BUY SPOKANE EAST BIG LOTS CDWG COFFEE SYSTEMS INC CORPORATE EXPRESS CRAPO, MELISA DOMPIER, DAWN Voucher List Spokane Valley Invoice 919003 91903 243749 91603 2498 1000121056 JP32936 30080 16140 46144593 30081 46179844 30083 9222003 DEPARTMENT OF INFO SERVICES, STA 1105972 PO # Description /Account CONTRIBUTION FILING FEE FLOOR MAT SERVICE PARKS PROGRAM FEE REFUND Total : Total : Total : Total : Total : ELECTRONIC EQUIPMENT RECREATION SUPPLIES PC MONITOR COFFEE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES PARKS & REC PROGRAM REFU Total : SOFTWARE MEDIA Total: Total : Total : Total : Total : Page: 1 Amount 2,800.00 2,800.00 110.00 110.00 37.46 37.46 12.00 12.00 740.44 740.44 13.93 13.93 341.95 341.95 14.32 14.32 219.80 83.79 303.59 25.00 25.00 27.79 27.79 91903 EXPENSE REIMBURSEMENT 13.12 Total : 13.12 Page: 1 vchlist 09/26/2003 9:57:14AM Bank code: apbank Voucher List Page: 2 Spokane Valley Voucher Date Vendor Invoice PO # DescriptionlAccount Amount 3533 9/26/2003 000302 DRS. HIGUCHI & SKINNER, P.S. 0922003 PARKS FACILITY RENTAL REFU 30.00 Total : 30.00 3534 9126/2003 000014 EDEN SYSTEMS, INC. 16840 SOFTWARE IMPLEMENTATION 150.00 17842 SOFTWARE TRAINING COSTS 3,677.07 17843 SOFTWARE IMPLEMENTATION 1,875.00 Total : 5,702.07 3535 9/26/2003 000028 FARMERS & MERCHANTS BANK 1217 Aug03 CREDIT CARD PAYMENT 601.63 1225 Auq'03 CREDIT CARD PAYMENT 390.60 5078 Auq'03 CREDIT CARD PAYMENT 164.46 Total : 1,156.69 3536 9/26/2003 000171 GEIGER CORRECTIONS CENTER Aug 03 CONTRACT SERVICES 1,985.75 Jul 03 CONTRACT SERVICES 3,718.00 Total : 5,703.75 3537 9/26/2003 000079 GOSS, SHELLEY 91903 EXPENSE REIMBURSEMENT 97.07 Total : 97.07 3538 9/26/2003 000289 HI TECHNIQUE 11287 DESKTOP PC TECH SUPPORT 445.91 Total : 445.91 3539 9/26/2003 000259 HUMANIX 132968 PARKS & REC TEMP LABOR 118.44 Total : 118.44 3540 9/26/2003 000303 KNUDSON, NESSA 922003 . PARKS & REC PROGRAM REFU 75.00 Total : 75.00 3541 9/26/2003 000252 LOWE'S BUSINESS ACCOUNT req recpl FIRE EXTINGUISHER & ACCESS' 102.92 Total : 102.92 3542 9/26/2003 000306 MAC CALLUM, CATHY 72903 PARKS & REC REFUND 28.00 Total : 28.00 3543 9/26/2003 000033 MCPC 1078433 30084 OFFICE SUPPLIES 131.21 Total : 131.21 Page: 2 vchlist 09/26/2003 9:57:14AM Bank code : Voucher 3544 3545 3546 3547 3548 3549 3550 3551 3552 3553 3554 3555 apbank Date Vendor 9/26/2003 000069 MERCIER, DAVID 9/26/2003 000296 NORTH AMERICAN VAN LINES 9/2612003 000301 NORTHWEST EXCAVATORS INC. 9/26/2003 000290 NORTHWEST MAP SERVICE 9/2612003 000307 OFFICE OF THE STATE.TREASURER 9/26/2003 000016 PETROCARD SYSTEMS 9/26/2003 000304 RUGGLES, TAYLOR 9/26/2003 000297 SHOLTENS, TOM 9/26/2003 000139 SHOPKO STORES, INC #70 9/26/2003 000299 SNYDER, KEVIN 9/26/2003 000308 9/26/2003 000001 SPOKANE COUNTY TREASURER che Vou r List Spokane Valley Invoice 92603 ARA95400 1604 0 -497 SR 04 -08 C374968 82503 0918003 0070 -50873 91703 SPOKANE COUNTY PROSECUTING, AT CVC Apr -Aug 3556 9/2612003 000311 SPRINT PCS 8/15-9/14 PO # Description /Account EXPENSE REIMBURSEMENT Total : HOUSEHOLD MOVING SERVIC Total : CONTRACTED ROAD MAINTEN Total : CITY MAPS FOR RESALE VEHICLE FUEL Total : STATE REMITTANCE APR -AUG' Total : Total : PARKS & REC PROGRAM REFU Total : EXPENSE REIMBURSEMENT Total : PARKS & REC PROGRAM SUPP Total : REIMBURSEMENT FOR MOVING Total : CRIME VICTIMS COMPENSATIO Total : 90803 COUNTY CONTRACTED SERVI Sep03 COUNTY CONTRACTED SERVI Total : CELL PHONE CHARGES Page: 3 Amount 542.04 542.04 3,500.00 3,500.00 2,722.80 2,722.80 99.00 99.00 120,501.70 120,501.70 288.17 288.17 32.00 32.00 73.37 73.37 56.86 56.86 3,265.70 3,265.70 1,646.89 1,646.89 181,753.53 1,118,212.65 1,299,966.18 161.62 Page: 3 vch11st 0912612003 9:57114AM Bank code : apb rik Date Vendor Voucher 3556 9126/2003 000311 SPRINT PCS 3557 9/26/2003 000167 VERA WATER & POWER 3558 912612003 000005 VMI, INC 3559 9126/2003 000310 WSAMA 3560 9/2612003 000004 ZEPUBLIC 40 Vouchers for bank code : aphank 40 Vouchers in this report I, the undersigned, do ❑ertify under penalty of perjury, that the materials have been furnished, the se rvices rendered, or the labor performed as described herein and U1 at the claim is just, due and an unpaid obligation against the Cily of Spokane Valley, and That I am authorized to authenticate and certify b said claim. Finance Director Cate Voucher List Page: 4 Spokane Valley Invoice (Continued) Sep03 161884 mein /reg 091503 PO 1 description1Aceount Amount Total ; 161,62 STREET LIGHTING & SIGNAL PO 169,88 Total : 169.88 MICROPHONE STANDS 36.58 Total : 36.58 REGISTRATION & MEMBERSHIP 175.00 Total : 175.00 WEBITE HOSTING - SEPT '03 250.00 Total : 250.00 Bank total : 1,451,518.45 Total vouchers : 1,451,518.45 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 10 - - City Manager Sign -off: Item: Check all that apply: x consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Payroll for Period Ending September 30, 2003 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET /FINANCIAL IMPACTS: Payroll for period ending 09 -30 -03 $ 95,841.57 salary $ 38.400.58 benefits $ 134,242.15 total payroll STAFF CONTACT: Daniel Cenis ATTACHMENTS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 10 -14 -03 City Manager Sign -off: Item: Check all that apply: ❑ consent X old business new business ❑ public hearing information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Proposed Nuisance Abatement Ordinance GOVERNING LEGISLATION: RCW 7.48 PREVIOUS COUNCIL ACTION TAKEN: Study session presentation by staff in May, 2003. Study session 9- 16 -03. First Reading September 23, 2003. BACKGROUND: Several very minor changes have been made since first reading: - page 5, Section 4(F), added "excluding properly maintained compost piles" from prohibited activities relating to dead vegetation fire hazards. - page 7, Section 4(P), added language to clarify dust from farming. A previous change was to add "This provision does not include permitted agricultural activities as legal non - conforming uses." This has another addition to it as follows: "This provision does not include permitted agricultural activities as legal non - conforming uses or permitted agricultural activities in General Agricultural zones." The reflects that there is one very small area of GA zoning near the Spokane Valley Mall. OPTIONS: RECOMMENDED ACTION OR MOTION: Move to adopt the Proposed Nuisance Abatement Ordinance. BUDGET /FINANCIAL IMPACTS: There may be minor revenue generated, excluding staff time to respond to complaints. Any excess funds from penalties that are not projected to be needed for abatement within 6 months are to be put in the general fund. STAFF CONTACT: Cary P. Driskell ATTACHMENTS: Proposed Nuisance Abatement Ordinance Proposed administrative draf3 general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 CIITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 03-083 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, PROVIDING FOR PROHIBiTiON OF NUISANCES AND DESCRIBING VIOLATIONS AND PENALTIES. WHEREAS, the City has the duty and authority to maintain and protect the health, safety and welfare of its citizens; \VT-iEREAS. certain conditions exist on private property that are detrimental to the public interest and interfere with the use and enjoyment of public and private property in the community; and WHEREAS, through nuisance regulations, the City is able to prohibit and abate conditions that exist on property in an effort to improve the quality of life within the City. NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, ordains as follows: Section 1. Purpose and Intent. The purpose and intent of this Ordinance is to create and niai.ntain a safe and healthy environment for the citizens of the City by identifying and reducing the conditions that contribute to injury, illness, devaluation of property, and the incidence of crime through the existence of nuisance conditions on public and private property. Section 2. Defritions. A. "abate" means to take whatever steps are deemed necessary by the Director to assure that the property complies with applicable nuisance ordinance requirements. Abatement may include, but is not limited to, rehabilitation, demolition, removal, replacement or repair. B. "the City" means the City of Spokane Valley, Washington. C. `days" will be counted as business days when five or less days are allowed to do an act required by this Ordinance, "days" will be considered calendar days when more than five days are allowed to do an act required by this Ordinance. D. "determination of compliance" means a written statement from the Director that the Director has reviewed evidence to determine that the violation(s) has been sufl=tciently abated as to the nuisance violation(s) stated in the voluntary compliance agreement, notice of violation, or notice and order. c/cpd walk filstordinanccs?eeneral nuisanceproposed admin 10 -10 -03 draft 7 Page 1 Proposed administrative draft genera] nuisance ordinance — C. Driske]I Draft 7 — October 10, 20G3 E. "the Director" means the Coinrnunity Development Director for Spokane Valley, or his/her designee. F. "found in violation" means that; 1. A citation or notice and order has been issued and not timely appealed; 2. A voluntary compliance agreement has been entered into; or 3. The Hearing Examiner has determined that the violation has occurred and such determination has not been stayed or reversed on appeal. Cr. "Hearing Examiner" roeaus the City of Spokane Valley Hearing Examiner, as provided by City of Spokane Valley Ordinance number 57. H. "mitigate' means to take measures, subject to City approval, to minimize the harmful effects of the nuisance violation where remediation is either impossible or unreasonably burdensome. I. "nuisance" means the unreasonable or unlawful use by a person of real or personal property, or the unreasonable, indecent or unlawful personal conduct which materially interferes with or jeopardizes the health, safety, prosperity, quiet enjoyment of property or welfare of others, offends common decency or public morality, or obstructs or interferes with the free use of public ways, places or bodies of water. J. "person" means any individual, association partnership, corporation or legal entity public or private, and the agents and assigns of such individual, association, partnership, corporation or legal entity_ I. "person responsible for a nuisance violation" means the person who caused the violation, if that can be determined, and/or the owner, lessor, tenant or other person entitled to control, use and/or occupancy of the property where the nuisance violation. occurs. L. "remediate" means to restore a site to a condition which does not pose a probable threat to the general public health, safety or welfare. Section 3. Enforcement. authority and administration_ A. in order to discourage public nuisances and otherwise promote compliance with applicable nuisance ordinance provisions, the Director may, in response to field observations or reliable complaints, determine that nuisance ordinance violations have occurred or are occurring, and may: cfcpc6 work filuicridinrinrxsigneral niisanccfproposcd admin 14.10 -03 draft 7 Page 2 Proposed administrative draft general nuisance ordinance— C. Driskell Draft 7 — October 10, 2003 1 Enter into voluntary compliance agreements with persons responsible for nuisance violations; Ordinance; 2. Issue notice of violation and assess civil penalties as authorized by this 3. Issue notice and orders, assess civil penalties and recover costs as authorized by this Ordinance; 4. Order abatement by means of a notice and order, and if such abatement is not timely completed by the person or persons responsible for a nuisance violation, seek a judicial abatement order and charge the reasonable costs of such work as authorized by this Ord inance; 5. Allow a person responsible for the nuisance violation to perform community service in lieu of paying civil penalties as authorized by Section 14(B) of this Ordinance; 6. Forward a written statement providing all relevant information relating to the violation to the Office of City Attorney with a recommendation to prosecute willful and knowing violations as a misdemeanor offense. 13. The procedures set forth in this Ordinance. are not exclusive. These procedures shall not in any manner limit or restrict the City from remedying nuisance violations or abating nuisance violations in any other manner authorized by law. C. In addition, or as an alternative, to utilizing the procedures set forth in this Ordinance, the Director may seek legal or equitable relief to abate any conditions or enjoin any acts or practices which constitute a nuisance violation. D. In addition, or as an alternative, to utilizing the procedures set forth in this Ordinance, the Director may assess or recover additional civil penalties accruing under this Ordinance by legal action filed in Spokane County District Court by the Office of the City Attorney. E. The provisions of this Ordinance shall in no way adversely affect the rights of the owner, lessee or occupant of any property to recover all costs and expenses incurred and required by this Ordinance from any person causing such violation. H. In administering the provisions this Ordinance, the Director shall have the authority to waive any one or more such provisions so as to avoid substantial injustice by application thereof to the acts or omissions of a public or private entity or individual, or acts or cicpd work filesfordinanceseg ntral nuisancdproposed udmin 10 -I0 -03 draft 7 Page 3 Proposed administrative drill general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 omissions on public or private property where no apparent benefit has accrued to such entity or individual from a nuisance violation. Any determination of substantial injustice shall be made in writing supported by appropriate facts. For purposes of this subsection, substantial injustice cannot be based exclusively on financial hardship. G. The provisions of this Ordinance detailing the administration of compliance procedures are not jurisdictional, are intended only for the purpose of providing guidance to City employees, and are not to be construed as creating a basis for appeal or a defense of any kind to an alleged nuisance violation. Failure to meet the guidelines set forth in this Ordinance in any particular case shall not affect the City's authority to enforce City nuisance provisions with regard to that case. H. The Director may, upon presentation of proper credentials, with the consent of the owner or occupier of a building or premises, or pursuant to a lawfully issued inspection warrant or other court order, enter at reasonable times any building or premises subject to the consent or warrant to perform the duties imposed by this Ordinance. It is the intent of the City Council that any entry made to private property for the purpose of inspection for nuisance violations be accomplished in strict conformity with constitutional and statutory constraints on entry, and the holdings of the relevant court cases regarding entry. The right -of -entry authorized by this Ordinance shall not supersede those legal constraints. I. The Director may request that the police, a fire district, Spokane Regional Health District or other appropriate City department or other non -city agency assist u1 enforcement. J. The Director is authorized to determine, based upon past cornplaints regarding a property, subsequent field investigations, and other relevant criteria, whether a complaint is reliable. if the Director determines a complaint is not reliable, the Director is not obligated to conduct a field investigation. Section 4. Nuisances Prohibited. No person, firm, or entity shall erect, contrive, cause, continue, maintain, or permit to exist any public nuisances within the City. Prohibited public nuisances include, but are not limited to: A. Vegetation. 1. Overhanging limbs or branches that are less than eight (8) feet above a public walkway or sidewalk, or less than fourteen (14) feet above a public street. 2. Vegetation that obstructs or hinders the use of any public walkway, sidewalk, or street, or that obstructs or obscures the view of traffic or traffic control devises, pursuant to clear view triangle policies promulgated by the Spokane Valley Public Works Director. 3. Any growth of noxious weeds or any toxic vegetation shall be subject to cicpd work filcs/ordinonces!grnerul nuisanee/proposed admin 1010 -03 draft 7 Paee 4 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 WAC 17.750 as currently adopted and hereafter amended. B. Buildings. Structures, Fences. 1. Buildings or portions thereof which are deemed dangerous by the Spokane Valley Building Code (currently adopted Uniform Code for the Abatement of Dangerous Buildings), provided that such conditions or defects exist to the extent that the life, health, property or safety of the public or the structure's occupants are endangered. 2. Any fence that obstructs or obscures the view of traffic or traffic control devises, pursuant to clear view triangle policies promulgated by the Spokane Valley Public Works ]Director. C. Sidewalks. 1. Any protrusion, awning, or overhang that inhibits or obstructs use of a public walkway or sidewalk. 2. Any object, construction, or damage that inhibits or obstructs the surface use of a public walkway or sidewalk. 3. Snow or ice not removed from a public sidewalk within a reasonable time. 4. Accumulations of dirt or debris not removed from a public sidewalk. D. Unauthorized Signs. 1. All unauthorized signs, signals, markings or devices that are displayed to resemble an official traffic control device. 2. All unauthorized signs, signals markings or devices that are attached in any way to an official traffic control device. Building and Construction Materials. Accumulations, stacks, or piles of building or construction materials not associated with a current in-progress project including metal, wood, wire, electrical or plumbing materials in disarray or exposed to the elements on • the property. This provision does not apply to a designated contractor's yard, as defined in the Spokane Valley Zoning Code 1.4.300. Fire I- laza.rds. Stacks or accumulations of newspapers, dead vegetation (excluding properly maintained compost piles), cardboard, or other paper, cloth, or wood products left in a manner that could pose a substantial risk of combustion or the spread of fire. dcpd work files!ordinnncesFgcneral nuisance/proposed admin 10 -10-03 draft 7 Page 5 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 G. Toxic or Caustic Substances. Improper storing or keeping of any toxic, flammable, or caustic substances or materials. Smoke, Soot. or Odors. The escaping or emitting of any unnecessary or harmful srrioke, soot, fumes, or gases or odors offensive or harmful to persons of ordinary sensibilities. 1, Bodies of Water. 1. Except for city approved structures related to storm drainage systems, all stagnant, pooled water in which mosquitoes, flies or other insects may multiply. 2. The polluting of any waterway, wells, or body of water not subject to the jurisdiction of the Spokane Regional Health District. J. Garbage, Recyclables. Compost, and Infestations. Garbage not kept in a proper receptacle with a tight fitting lid. 2. Accumulations of broken or neglected items, litter, salvage materials, and junk not in an approved enclosed structure, in the front, back, or side yards of the property. 3. Recyclables not properly stored and regularly disposed of. 4. Creating or maintaining accumulations of matter, including food stuffs, that harbors or is an attraction for the infestation of insects or vermin; failing to eliminate such infestations; or failing to eliminate intrusive insects. K. Furniture and Appliances. 1. All broken or discarded household furniture, furnishings or equipment, or any appliances not in an approved enclosed structure, in the front, side, or back yard of a property. 2. All accessible refrigeration appliances not having the doors secured or removed, or any enclosure that can entrap humans or animals. L. Holes. Pits, and Excavations. All uncovered holes, pits, or excavations not marked or guarded that are in excess of ten or more inches in width at the top and four feet or more in depth. • M. Machinery and Equipment. Broken, inoperable, accumulations of or parts of machinery or equipment not in an approved enclosed structure, in the front, back, or side yards of the property. This section excludes nuisance vehicles that are regulated by the Junk Vehicle Ordinance, Spokane Valley Ordinance No. 03 -67. cicpd wort: filcsrordinanc s/ge+oeral nuisance/proposed admin 10 -10 -03 dratl 7 Page 6 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 N. Attractive Nuisances. Any accessible attractive nuisance to children including, but not limited to, unattended machinery or equipment, unsecured abandoned or vacant buildings, open and unattended vehicle trunks, or other unguarded conditions or situations that could injure or trap a child. 0. Noise. 1. Any noise or sound that intrudes into the property of another person that exceeds the maximum permissible noise levels as established in WAC 173 -60 -040, as currently adopted and hereafter amended. 2. The frequent, repetitive or continuous sounding of any horn or siren attached to a motor vehicle, except as a warning of danger or as specifically or permitted by law. 3. The creation of frequent, repetitive or continuous sounds in connection with the starting, operation, repair, rebuilding or testing of any motor vehicle, motorcycle, off - highway vehicle or internal combustion engine within a residential zone, so as to unreasonably disturb or interfere with the peace, comfort of owners or possessors of real property. 4. The noisy operation of any automobile, truck, motorcycle or other vehicle in such a non - emergency manner to cause the squealing of tires by the rapid acceleration of the vehicle; the loud and continuous grinding, thumping or grading noises from trucks or other commercial vehicles; the engine compression noise from the unmuffled or poorly muffled compression braking of trucks; the sound from any motor vehicle audio sound system such as tape players, radios, and compact disk players at volumes so as to be audible greater than 50 feet from the vehicle itself; and loud, excessive engine or exhaust noise from uiunuffled vehicles or vehicles operating with inadequate muffler systems to prevent unreasonably loud noises. P. Dust. Disturbing the top soil of any land area, or permitting the same, by any person without taking affirmative measures to suppress and minimize the blovvi.ng and scattering of dust so as to unreasonably disturb or interfere with the peace, comfort of owners or possessors of real property. This provision does not include permitted agricultural activities as legal non - conforming uses or permitted agricultural activities in General Agricultural zones. Q. Nuisance Premises. Any premises or structures allowing or maintaining prostitution, lewd behavior, underage consumption of alcohol, the harboring of juvenile runaways or wanted persons, or where there is the use, sale, manufacturing or distributing of any narcotic or controlled substance, or at which there is a pattern of criminal activity, are a prohibited nuisance. Section 5. Initial investigation. A. Except in emergencies and for low risk case complaints, field verification should dcpd wo.:t lilts /ordinanrrstgentral nuisance/proposed admin 10 -10 -03 draft 7 Page 7 Proposed administrative draft general nuisance ordinance — C. Oriskell Draft 7 — October l0, 2003 be made if possible prior to, concurrent with, or shortly after notifying the person responsible for the nuisance violation or alleged nuisance violation. Low risk case complaints should be acknowledged by sending a letter to the person(s) responsible for the nuisance violation. The letter should state that a violation may have occurred, but has not been verified, and should ask the recipient to contact the person issuing the letter. B. Advising interested parties of receipt of complaint and /or field investigation. 1. The person responsible for the nuisance violation should be advised of any complaint by personal contact; phone; posting and mail (return receipt requested). 2. The complainant should be contacted by phone, and if possible, in person durine the field visit. C. The Director will record all violations in a database system, including a list of all actions taken on the complaint. D. To the extent possible, the Director shall check the City's records and the records of other agencies for previous violations on the site of the alleged violation or by the owner or occupant of the site or such other person as may be responsible for the nuisance violation. C. Staff undertaking field investigations shall comply with the provisions of this chapter regarding right of entry. Section 6. Procedures when probable nuisance violation is identified. A. The Director shall determine, based upon infonnation derived from sources such as field observations, the statements of witnesses, relevant documents and data systems for tracking violations and applicable City regulations, whether or not a nuisance violation has occurred. As soon as the Director has reasonable cause to determine that a violation has occurred, he or she shall document the violation and promptly notify the person(s) responsible for the nuisance violation. B. Except as provided in subsection D, a warning shall be issued verbally or in writing promptly when a field inspection reveals a violation, or as soon as the Director otherwise determines a nuisance violation has occurred. The warning shall itnform the person determined to be responsible for a nuisance violation of the violation and allow the person an opportunity to correct it or enter into a voluntary compliance agreement as provided for by this chapter. Verbal warnings shall be logged and followed up with a written warning within five (5) days, and the site shall be re- inspected within fourteen (14) days. C. The guidelines set forth for warnings, notifications and re- inspections are not jurisdictional, and failure to meet them in any particular case shall not affect the City's authority ctcpd work rilcsfordinanccslgencral nuisancdp:aposed admin 10 -10 -03 draft 7 Page 8 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 to enforce nuisance provisions with regard to that case. D. No warning need be issued in emergencies, repeat violation cases, cases that are already subject to a voluntary compliance agreement, cases where the violation creates, or has created, a situation or condition that is not likely to be corrected within seventy -two (72) hours, or when the person responsible for the nuisance violation knows, or reasonably should have known that the action was a nuisance violation. E. Notice and orders should be issued in all cases where the Director determines that the violation is unlikely to be fully corrected within seventy-two (72) hours. F. The Director shall use all reasonable means to determine the person actually responsible for the nuisance violation occurring when the property owner has not directly or indirectly caused the violation. G. If the violation is not corrected, or a voluntary compliance agreement is not achieved within ten (10) days of notification by the Director, a notice and order should be issued. A notice of violation may be issued immediately after field verification of a violation. H. All complainants will be asked by staff at the time the complaint is filed whether they wish to be kept advised of enforcement efforts. Any complainant who provides a nailing address and requests to be kept advised of enforcement efforts should be mailed a copy of all written warnings, voluntary compliance agreements, notice of violations, and notice and orders issued by the Director with regard to the alleged violation. Any complainant may appeal a determination of nuisance ordinance compliance issued by the Director pursuant to Section 19 of this Ordinance. Section 7. Voluntary Compliance Agreements. A. Authority. Whenever the Director determines that a nuisance violation has occurred or is occurring, the Director shall make reasonable efforts to secure voluntary compliance from the person responsible for the nuisance violation. Upon contacting the person responsible for the nuisance violation, the Director may enter into a voluntary compliance agreement as provided for in this Ordinance. 1. A voluntary compliance agreement may be entered into at any time after issuance of a verbal or written warning, a notice of violation, notice and order or a stop work order and before an appeal is decided pursuant to Section 19 of this Ordinance. 2. Upon entering into a voluntary compliance agreement, a person responsible for a nuisance violation waives the right to administratively appeal, and thereby admits that the conditions described in the voluntary compliance agreement existed and constituted a nuisance violation; and c/cpd work files/ordinances/general nuisance/proposed admin I0 -10.03 draft 7 Page 9 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 3. The voluntary compliance agreement shall incorporate the shortest reasonable time period for compliance, as determined by the Director. An extension of the time limit for compliance, or a modification of the required corrective action may be granted by the Director if the person responsible for the nuisance violation has shown due diligence or substantial progress in correcting the violation, but circumstances render full and timely compliance under the original conditions unattainable. Any such extension or modification must be in writing and signed by the Director and person(s) who signed the original voluntary compliance agreement. 4. The voluntary compliance agreement is not a settlement agreement. 13. Contents. The. voluntary compliance agreement is a written, signed commitment by the person(s) responsible for a nuisance violation in which such person(s) agrees to abate the violation, remediate the site, and/or mitigate the impacts of the violation. The voluntary compliance agreement shall include the following: a. The name and address of the person responsible for the nuisance violation; b. The address or other identification of the location of the violation; c. A description of the violation and a reference to the provision(s) of the Ordinance, which has been violated; d. A description of the necessary corrective action to be taken and identification of the date or time by which compliance must be completed; e. The person responsible for the violation agrees that the City may enter the property and inspect the premises as necessary to determine compliance with the voluntary compliance agreement; f. That a civil penalty in the amount of $250 will be imposed pursuant to Section 14(A)(1) of this Ordinance if the voluntary compliance agreement is not satisfied; g. clepd % otk fileslordinanccsfgeneral nuisancelpmoposcd admin 10 -10-03 draft 7 Page 10 An acknowledgement that if the Director determines that the terms of the voluntary compliance agreement are not met, the City may, without issuing a notice of violation or notice and order, impose any remedy authorized by this Ordinance, enter the property and perform summary abatement of the violation, assess the costs Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 J• Failure to meet terms. e/epd work lileslordinancesheneral nuisance/proposed admin 10 -10 -03 draft 7 Page 11 incurred by the City to achieve compliance and to abate the violation, including reasonable legal fees and costs; h. An acknowledgement that if a penalty is assessed, and if any assessed penalty, fee or cost is not paid, the Director may charge the unpaid amount as a lien against the property where the nuisance violation occurred if owned by the person responsible for the nuisance violation, and that the unpaid amount may be a joint and several personal obligation of all persons responsible for the nuisance violation; An acknowledgement that by entering into the voluntary compliance agreement, the person responsible for the nuisance violation thereby admits that the conditions described in the voluntary compliance agreement existed and constituted a nuisance violation; and An acknowledgement that the person responsible for the nuisance violation understands that he or she has the right to be served with a notice of violation or notice and order for any violation identified in the voluntary compliance agreement, has the right to administratively appeal any such notice of violation or notice and order, and that he or she is knowingly, voluntarily and intelligently waiving those rights. 1. Tf the terms of the voluntary compliance agreement are not completely met, and an extension of time has not been granted, the Director may enter the property and summarily abate the violation in accordance with the provisions of the voluntary compliance agreement. The person responsible for compliance may, without being issued a notice of violation or notice and order, be assessed a civil penalty in the amount of $250, plus all costs incurred by the City to pursue compliance and to abate the violation. Penalties imposed when a voluntary compliance agreement is not met accrue from the date that an appeal of any preceding notice of violation, or notice and order was to have been filed or from the date the voluntary compliance agreement was entered into if there was not preceding notice of violation or notice and order. 2. The Director may issue a notice of violation or notice and order for failure to meet the terms ofa voluntary compliance agreement. Section 8. Notice of Violation - Civil Monetary Penalty Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 A. Authority Whenever the Director has determined, based upon investigation of documents and /or physical evidence, that a nuisance violation has occurred, the Director shall assess a civil monetary penalty in the amount of $250.00 to any person responsible for the nuisance violation. A notice of violation may be issued at any time after the Director receives filed verification that a violation exists. Subsequent complaints shall be treated as new complaints for purposes of this Ordinance. However, such subsequent complaints shall not constitute a separate violation to which the penalties of this Ordinance apply. B. Effect. 1. A notice of violation represents a determination that a nuisance violation has occurred and that the named party is a person responsible for a nuisance violation. 2. A notice of violation subjects the person responsible for a nuisance violation to the civil penalties prescribed by Section 8A of this Ordinance. 3. The person responsible for a nuisance violation shall either pay the civil penalties assessed within twenty (20) days of the date. of issuance of the notice of violation, or appeal the notice of violation pursuant to the procedures in Section 19 of this Ordinance. 4. Failure to appeal the notice of violation within twenty (20) days shall render the notice of violation a final determination that the conditions described in the notice of violation existed and constituted a nuisance violation, and that the named party is liable as a person responsible for a nuisance violation. 5. Imposition of a civil penalty creates a joint and several personal obligation in all persons responsible for a nuisance violation who are served with notice of the violation. The Office of the City Attorney, on behalf of the City of Spokane Valley, may collect the civil penalties assessed by any appropriate legal means. 6. Issuance of a notice of violation in no way limits the Director's authority to issue a notice and order to any person responsible for a nuisance violation pursuant to this Ordinance. C. Contents. The notice of violation shall include all of the following information: The address, when available, or location of the nuisance violation; 2. A legal description of the real property or the Spokane County tax parcel number where the violation occurred or is located, or a description identifying the property by commonly used locators; 3. A statement that the Director has found the named person(s) to have rlcpd work Iilesiordinancr_s / general nuisancclproposed admin 10-10-03 draft 7 Page 12 Proposed administrative draft general nuisance ordinance —C. Driskell Draft 7 — October 10, 2003 committed a nuisance violation and a brief description of the violation(s) found; violated; 4. A statement of the specific Ordinance provision that was or is being 5. A statement that the notice of violation represents a determination that a nuisance violation has occurred and that the named party is subject to a civil penalty; 6. A statement of the amount of the civil penalty assessed, that payment of the civil penalties assessed does not relieve a person found to be responsible for a nuisance violation of his or her duty to correct the violation and /or to pay any and all civil penalties or other cost assessments issued pursuant to this Ordinance, and that the penalty must be paid within twenty (20) days, if not appealed pursuant to Section 19 of this Ordinance; 7. A statement of the corrective or abatement action required to be taken; li. A statement advising that any person named in the notice of violation, or having any record or equitable title in the property against which the notice of violation is issued may appeal from the notice of violation to the Hearing Examiner within twenty (20) days of the date of service of the notice of violation; 9. A statement advising that a failure to appeal the notice of violation within twenty (20) days renders the citation a final determination that the conditions described in the citation existed and constituted a nuisance violation, and that the named party is liable as a person responsible for a nuisance violation; and 10. A statement advising that a willful and knowing violation may be referred to the Office of the City Attorney for prosecution as a misdemeanor pursuant to Section 18 of this Ordinance. D. Modification or Revocation. 1. The Director may add to, revoke in whole or in part, or otherwise modify a notice of violation by issuing a written supplemental notice of violation. The supplemental notice of violation shall be governed by the same procedures and time limits applicable to all notice of violations contained in this Ordinance. 2. The Director may issue a supplemental notice of violation, or revoke a notice of violation issued under this Ordinance: a. if the original notice of violation was issued in error; b. whenever there is new information or change of circumstances; or c/cpd work files/ordinances/general nuisance/proposed admin 10 -10 -03 draft 7 Page 13 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 c. if a party to a notice of violation was incorrectly named. 3. Such revocation or modification shall identify the reasons and underlying facts for modification or revocation, and shall be served on the person responsible for a nuisance violation in conformity with this Ordinance. Section 9. Notice and Orders. A. Authority. When the Director has reason to believe, based on investigation of documents and /or physical evidence, that a nuisance violation exists or has occurred, or that the nuisance violations identified in a notice of violation have not been corrected, the Director is authorized to issue a notice and order to any person responsible for a nuisance violation. The Director shall make a determination whether or not to issue a notice and order within ten (10) days of receiving field verification that a nuisance violation exists. The Director may, at his or her discretion, extend the time for issuance of a notice and order as conditions warrant. Subsequent complaints shall be treated as new complaints for the purposes of this Ordinance. Issuance of a notice of violation is not a condition precedent to the issuance of a notice and order. B. Effect. 1. A notice and order represents a determination that a nuisance violation has occurred, that the named party is a person responsible for a nuisance violation, and that the violations set out in the notice and order require the assessment of penalties and other remedies that may be specified in the notice and order. 2. Upon a determination by the Director that a nuisance violation has occurred pursuant to a notice and order, the Director shall impose a minimum civil monetary penalty in the amount of $500.00 for each violation. Section 14(A)(2) authorizes additional civil monetary penalties as set forth in that Section. 3. Any person identified in the notice and order as responsible for a nuisance violation may appeal the notice and order within twenty (20) days according to the procedures described in Section 19 of. this Ordinance. 4. Failure to appeal the notice and order within the applicable time limits shall render the notice and order a final determination that the conditions described in the notice and order existed and constituted a nuisance violation, and that the named party is liable as a person responsible for a nuisance violation. 5. Issuance of a notice and order in no way limits a Director's authority to issue a notice of violation to a person previously cited through the notice and order process pursuant to this Ordinance. dead woik files/ordinances/general nuisance/proposed admin 10- 1(1-03 draft 7 Page 14 Proposed administrative draft general nuisance ordinance— C. Driskell Draft 7 — October 10, 2003 C. Contents. The notice and order shall contain the following information: 1. The address, when available, or location of the nuisance violation; 2. A legal description of the real property or the Spokane County tax parcel number where the violation occurred or is located, or a description identifying the property by commonly used locators; 3 A statement that the Director has found the named person(s) to have committed a nuisance violation and a brief description of the violation(s) found; 4. The specific provision of the ordinance that was or is being violated; 5. A statement that a civil monetary penalty is being assessed in the amount of $500.00 for each separate violation. If appropriate under the cirelunstances, that an additional civil monetary penalty is being assessed pursuant to Section 14(A)(2), and that any assessed penalties must he paid within twenty (20) days of service of the notice and order; 6. A statement advising that any costs of enforcement incurred by the City shall also be assessed against the person to whom the notice and order is directed; 7. A statement that payment of the civil penalties assessed under this chapter does not relieve a person found to be responsible for a nuisance violation of his or her duty to correct the violation and /or to pay any and all civil penalties or other cost assessments issued pursuant to this Ordinance; 8. A statement of the corrective or abatement action required to be taken and that all required permits to perform the corrective action must be obtained from the proper issuing agency; 9. A statement advising that, if any required work is not commenced or completed within the time specified by the notice and order, the Director may proceed to seek a judicial abatement order from Spokane County Superior Court. In the event of obtaining a judicial abatement order, the City will abate the nuisance, cause the work to be done, and charge the costs thereof as a lien against the property and as a joint and several personal obligation of any persons responsible for a nuisance violation; 10. A statement advising that, if any assessed penalty, fee or cost is not paid on or before the due date, the Director may charge the unpaid amount as a lien against the property where the nuisance violation occurred if owned by a person responsible for a nuisance violation, and as a joint and several personal obligation of all persons responsible for a nuisance violation; cicpd +■roil: Iileslordinanccs)eneral nuisance/proposed admin 10.10 -03 draft 7 Page 15 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 11. A statement advising that any person named in the notice and order, or having any record or equitable title in the property against which the notice and order is recorded may appeal from the notice and order to the Hearing Examiner within twenty (20) days of the date of service of the notice and order, pursuant to Section 19 of this Ordinance; 12. A statement advising that a failure to appeal the notice and order within the applicable time limits renders the notice and order a final determination that the conditions described in the notice and order existed and constituted a nuisance violation, and that the named party is liable as a person responsible for a nuisance violation; 13. A statement advising the person responsible for a nuisance violation of his/her duty to notify the Director of any actions taken to achieve compliance with the notice and order; and 14. A statement advising that a willful and knowing violation may be referred to the Office of the City Attorney for prosecution pursuant to Section 18 of this Ordinance. D. Supplementation, revocation, modification. 1. The Director may add to, revoke in whole or in part, or otherwise modify a notice and order by issuing a written supplemental notice and order. The supplemental notice and order shall be governed by the same procedures and time limits applicable to all notice and orders contained in this Ordinance. 2. The Director may issue a supplemental notice and order, or revoke a notice and order issued under this Ordinance: a. If the original notice and order was issued in error; b. Whenever there is new information or change of circumstances; or c. If a party to an order was incorrectly named. 3. Such revocation or modification shall identify the reasons and underlying facts for modification or revocation. 1✓. Administrative conference. An informal administrative conference may be conducted by the Director at any time for the purpose of facilitating communication among concerned persons and providing a forum for efficient resolution of any violation. Interested parties shall not unreasonably be excluded from such conferences. F. Abatement. In addition, or as an alternative, to any other judicial or administrative cicpd « 'Ork files/ordinances/general nuisancelproposed admin 10 -10.03 draft 7 Page 16 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 remedy, the Director may use the notice and order provisions of this Ordinance to order any person responsible for a nuisance violation to abate the violation and to complete the work at such time and under such conditions as the Director determines reasonable under the circumstances. If the required corrective work is not commenced or completed within the time specified, the Director may seek a judicial abatement order as authorized by this Ordinance. Section 10. Abatement. In addition to the abatement procedures otherwise provided in this Ordinance, the City may proceed with emergency or judicial abatement as warranted by the circumstances. A. Emergency Abatement.. Whenever a condition, the continued existence of which constitutes an immediate threat to the public health, safety or welfare or to the environment, is found to exist, the City may summarily and without prior notice abate the condition. Notice of such abatement, including the reason for it, shall be given to the person responsible for the violation as soon as reasonably possible after the abatement. B. Judicial Abatement: The City may seek judicial process, as deemed necessary, to abate a condition which continues to be a violation of this Ordinance where other methods of remedial action have failed to produce compliance. Section 1.1.. Service — notice of violation, notice and order. A. Service of a notice of violation or notice and order shall be made on a person responsible for nuisance violation by one or more of the following methods: 1. Personal service of a notice of violation or notice and order may be made on the person identified by the Director as being responsible for the nuisance violation, or by leaving a copy of the notice of violation or notice and order at the person's house of usual abode with a person of suitable age and discretion who resides there; 2. Service directed to the landowner and/or occupant of the property may be made by posting the notice of violation or notice and order in a conspicuous place on the property where the violation occurred and concurrently mailing notice as provided for below, if a mailing address is available; 3. Service by mail may be made for a notice of violation or a notice and order by mailing two copies, postage prepaid, one by ordinary first class mail and the other by certified mail, to the person responsible for the nuisance violation at his or her last known address, at the address of the violation, or at the address of the place of business of the person responsible for the nuisance violation. The taxpayer's address as shown on the tax records of Spokane County shall be deemed the proper address for the purpose of mailing such notice to the landowner of the property where the violation occurred. Service by mail is presumed effective upon the third business day following the day the notice of violation or notice and order was placed in the mail. c/cpd wort: fileslurdinenceslgcnciint nuisance /proposed admin 10 -10-03 draft 7 Page 17 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 4. Service by publication shall conform to the requirements of Civil Rule 4 of the Rules for Superior Court. B. The failure of the Director to make or attempt service on any person named in the notice of violation or notice and order shall not invalidate any proceedings as to any person duly served. Section 12. ObliRations of Persons Responsible for Nuisance Violation. A. It shall be the responsibility of any person identified as responsible for nuisance violation to bring the property into a safe and reasonable condition to achieve compliance. Payment of civil penalties and compliance with other remedies does not substitute for performing the corrective work required and having the property brought into compliance to the extent reasonably possible under the circumstances. B. Persons determined to be responsible for a nuisance violation pursuant to a notice of violation or notice and order shall be liable for the payment of any civil penalties and abatement costs. If a property owner affirmatively demonstrates that the action which resulted in the violation was taken without the owner's knowledge or consent by someone other than the owner or someone acting on the owner's behalf, that owner shall be responsible only for bringing the property into compliance to the extent reasonably feasible under the circumstances. Should the owner not correct the violation, only those abatement costs necessary to bring the property into a safe and reasonable condition, as determined by the Director, shall be assessed by the City. No civil penalties shall be assessed against such an owner or his or her property interest. Section 13. Determination of Compliance. After issuance of a warning, notice of violation, voluntary compliance agreement or notice and order, and after the person(s) responsible for a nuisance violation have come into compliance to the satisfaction of the Director, the Director shall issue a written determination of compliance. The Director shall mail copies of the determination of compliance to each person originally named in the warning, voluntary compliance agreement, notice of violation or notice and order, as well as the complainant, by certified mail, five -day return receipt requested. Section 14. Civil Penalties. A. Assessment Schedule. 1. Civil penalties for nuisance violations shall be imposed for remedial purposes and shall be assessed for each violation identified in a notice of violation or notice and order pursuant to the following schedule: c/epd work filcs /ordinanccslgeneral nuisuncdproposed admen 1Q -10-03 draft 7 Page 18 1. Notice of violation $250 2. Notice and Orders a. basic penalty $500 b. additional penalties may be added where there is: 1. public health risk — amount depends upon severity $0 -2,500 2. history of similar violations (less than three) $0 -1,000 3. history of similar violations (three or more) $0 -5,000 c. the above penalties may be offset by the following compliance 1. full compliance with voluntary compliance agreement with prior history of 0 -1 similar violations $0 -1 2. full compliance with voluntary compliance agreement with prior history of two or more similar violations $0 - 250 Proposed administrative draft general nuisance. ordinance — C. Driskell ')raft i - October 10. 1 003 2 . The total initial penalties assessed for notice and orders pursuant to this Ordinance shall apply for the first thirty day period following issuance of the order, unless another time period is specified in a voluntary compliance agreement. if a voluntary compliance agreement is not entered into within that tine period, and no appeal is filed, the penalties for the next fifteen day period shall be one hundred fifty percent (150%) of the initial penalties, and the penalties for the next Fifteen day period shall be two hundred percent (200 %) the amount of the initial penalties. The intent of this subsection is to increase penalties beyond the maximum penalties stated in subsection 1 as an additional means to achieve timely compliance. 3. Notice of violations shall be subject to a one -time penalty per violation. The Director retains authority to issue a subsequent notice and order for continued non- compliance. In that event, additional penalties shall be imposed. For purposes of assessing civil penalties, a violation shall be considered ongoing until the person responsible for a nuisance violation has come into compliance with the voluntary compliance agreement, notice of violation or notice and order and has provided sufficient evidence of such compliance. 4. Civil penalties shall be paid within twenty (20) days of service of the notice of violation or notice and order if not appealed. Payment of the civil penalties assessed under this Ordinance does not relieve a person found to be responsible for a nuisance violation of his or her duty to correct the violation and /or to pay any and all civil penalties or other cost assessments issued pursuant to this Ordinance. 5. The Director may suspend civil penalties assessed pursuant to subsection 1 if the person responsible for a nuisance violation has entered into and completes a voluntary compliance agreement. Penalties shall begin to accrue again pursuant to the tetras of the voluntary compliance agreement if corrective action stated in the voluntary compliance agreement is not completed as specified. 6. Civil penalties assessed create a joint and several personal obligation in all eicpd work rd:slordinancedgenertd nuisance/pmposcd ad min 10 -10 -03 draft 7 Page 19 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 persons responsible for a nuisance violation. 7. In addition to, or in lieu of, any other state or local provision for the recovery of civil penalties, the City may file for record with the Spokane County Auditor to claim a lien against the real property for the civil penalties assessed under this chapter if the violation was reasonably related to the real property. Any such lien can be filed under this chapter if, after the expiration of thirty (30) days from when a person responsible for a nuisance violation receives the notice of violation or notice and order (excluding any appeal) any civil penalties remain unpaid in whole or in part. B. Community Service. The Director is authorized to allow a person responsible for a nuisance violation that accumulates civil penalties as a result of a notice of violation, notice and order, or failure to comply with the terms of a voluntary compliance agreement, to voluntarily participate in community service projects in lieu of paying all or a portion of the assessed civil penalties. Community service may include, but is not limited to, abatement, restoration or education programs designed to clean up the City. The amount of community service will reasonably relate to the comparable value of penalties assessed against the violator. The rate at which civil penalties are worked off under this subsection is $10.00 per hour. The Director shall take into consideration the severity of the violation, any history of previous violations and practical and legal impediments in considering whether to allow community service in lieu of paying penalties. C. Waivers. 1. Civil penalties may he waived or reimbursed to the payor by the Director under the following circumstances: circumstances; or a. The notice of violaton or notice and order was issued in error; or b. The civil penalties were assessed in error; or c. Notice failed to reach the property owner due to unusual d. New, material information warranting waiver has been presented to the Director since the notice of violation or notice and order was issued. 2. The Director shall state in writing the basis for a decision to waive penalties, and such statement shall become part of the public record unless privileged. Section 15. Cost Recovery. A. In addition to the other remedies available under this chapter, upon issuance of a ca-pd work tileslnrdin es /general nuisance/proposed adrnin 10 -10 -03 draft 7 Page 20 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 notice and order, the Director shall charge the costs of pursuing compliance and abatement incurred to correct a violation to the person responsible for a violation. These charges include: 1. Reasonable legal fees and costs. For purposes of this Ordinance, "reasonable legal fees and costs" shall include, but is not limited to legal personnel costs, both direct and indirect, incurred to enforce the provisions of this Ordinance; and 2. Administrative personnel costs. For purposes of this Ordinance, administrative personnel costs shall include, but are not limited to administrative employee costs, both direct and indirect, incurred to enforce the provisions of this Ordinance; and 3. Abatement costs. The Director shall keep an itemized account of costs incurred by the City in the abatement of a notice and order under this Ordinance. Upon completion of any abatement work, the Director shall prepare a report specifying a legal description of the real property where the abatement work occurred, work done for that property, the itemized costs of the work, and interest accrued; and 4. Actual expenses and costs of the City in preparing notices, specifications and contracts; in accomplishing or contracting and inspecting the work; and the costs of any required printing, mailing or court filing fees. B. Such costs are due and payable thirty (30) days from mailing of the invoice. C. All costs assessed by the City in pursuing compliance and/or abatement create a joint and several personal obligation in all persons responsible for a nuisance violation. The Office. of the City Attorney, on behalf of the City, may collect the costs of compliance efforts by any appropriate legal means. D. In addition to, or in lieu of any other state or local provision for the recovery of costs, the City may, after abating a nuisance violation pursuant to this Ordinance, file for record with the Spokane County Auditor to claim a lien against the real property for the assessed costs identified in this Ordinance if the violation was reasonably related to the real property. Such a lien shall be substantially in accordance with the provision regarding mechanic's liens in RCW 60.04, and said lien shall be foreclosed in the same manner as such liens. E. Any lien filed shall be subordinate to all previously existing special assessment liens imposed on the same property and shall be superior to all other liens, except for state and county taxes, with which it shall share priority. The City of Spokane Valley may cause a claim for lien to be filed for record within ninety (90) days from the later of the date that the monetary penalty is due or the date the work is completed or the nuisance abated. The claim of lien shall contain sufficient information regarding the notice of violation, a description of the property to be charged with the lien, the owner of record, and the total of the lien. Any such claim of lien may be amended from time to time to reflect changed conditions. Any such lien shall bind the affected property for the clepd woik lilesJordinance leeneial nuisance/proposed edmin 10-10-03 draft 7 Page 21 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10 2003 period as provided for by state law. Section 16. Collection of civil penalties, fees and costs. The Director may use the services of a collection agency in order to collect any civil penalties, fees, costs and /or interest owing under this Ordinance. Section 17. Nuisance abatement fund — authorized. A. All monies collected from the assessment of civil penalties and for abatement costs and work shall be allocated to support expenditures for abatement, and shall be accounted for through either creation of an account in the fund for such abatement costs, or other appropriate accounting mechanism. 13. Funds needed to abate a nuisance violation by the City shall be obtained from the abatement fund. Any monies collected under this ordinance that exceed an amount projected to cover anticipated abatement requirements within a six month time period shall be placed in the general fund. Section 18. Misdemeanor. Any person who willfully or knowingly causes, aids or abets a nuisance violation pursuant to this Ordinance by any act of commission or omission is guilty of a misdemeanor. Upon conviction, the person shall be punished by a fine not to exceed one thousand dollars and /or incarceration for a term not to exceed ninety days. Each week (seven consecutive days) such violation continues shall be considered a separate misdemeanor offense. As an alternative, or in addition to any other judicial or administrative remedy provided in this chapter or by law or other regulation, the Director may recommend that the Office of the City Attorney file a misdemeanor complaint against the person responsible for a nuisance violation when the Director has documentation or other evidence that the violation was willful and knowi ng. Section 19. Administrative Appeals. A. Filing Requirements. 1. Any person issued a notice of violation or named in a notice and order, and any owner of the land where the violation for which a notice of violation or notice and order is issued occurred, may file a notice of appeal of the following: a. notice of violation; b. notice and order; 2. A complainant who requests to be kept advised pursuant to Section 6(H) of this Ordinance may appeal a determination of compliance by the Director. cicpd work files/ordinances /general nuisance /proposed admin 10 -10-03 draft 7 Page 22 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 3. A person that does not meet the requirements of Section 19 (A)(1) or (2) does not have standing to appeal under this Ordinance. 4. Any person filing an appeal under this Ordinance who was issued a notice of violation or notice and order, or is the owner of the land where the violation occurred, shall do so by obtaining the appeal form from the Director and filing the completed appeal form with the Director within twenty (20) days of service of the notice of violation or notice and order. A complainant who appeals the determination of compliance by the Director must file any such appeal within twenty (20) days of service of the determination of compliance. 5. Any administrative appeal considered under this Ordinance will be determined by the Hearings Examiner pursuant to Spokane Valley Ordinance 57 as adopted or hereafter amended, unless in conflict with specific provisions of this Ordinance, in which case the specific provisions of this Ordinance shall control. B. Notice of hearing. Upon receipt of a notice of appeal, the City shall provide a hearing notice stating the time, location and date of the hearing on the issues identified on the notice of violation or notice and order. The City shall mail this notice by certified mail, five -day return receipt requested, to the person(s) responsible for a nuisance violation. C. Procedures. 1. The appeal hearing shall be conducted as provided for in Spokane Valley Ordinance 57 as adopted or hereafter amended. 2. Enforcement of any notice and order of the Director issued pursuant to this Ordinance shall be stayed as to the appealing party during the pendency of any administrative appeal under this Ordinance, except when the Director determines that the violation poses a significant threat of immediate and /or irreparable harm and so states in the notice and order. 3. When multiple notices of violations or notices and order have been issued simultaneously for any set of facts constituting a violation, only one appeal of all the enforcement actions shall be allowed. D. Final order. 1. Following review of the evidence submitted, the Hearing Examiner shall issue a written order containing findings and conclusions, and shall affirm or modify the notice of violation or notice and order previously issued if the Hearing Examiner finds that a violation has occurred. The Hearing Examiner shall uphold the appeal and reverse the citation or order if the examiner finds that no violation occurred. 2. If an owner of property where the violation has occurred has affirmatively cltpd wort fileslordinaioeslgcncral ouisancdpropased admits 10 -10.03 draft Page 23 Proposed administrative draft gi ncral nuisance. ordinance — C. Driskell Draft 7 — October 1 O., 2003 demonstrated that the violation was caused by another person or entity not the agent of the property owner and without the owner's knowledge or consent, such property owner shall he responsible only for abatement of the violation_ Strict compliance with permit requirements may be waived regarding the performance of such abatement in order to avoid doing substantial injustice to a non - culpable property owner. 3. The Hearing Examiner's order affirming, revoking or modifying a notice of violation or notice and order is a final decision, and shall be final and conclusive unless proceedings for review of the decision are properly commenced in Spokane County Superior Court within the time period specified by applicable state law Section 20. Judicial enforcement. A. In addition to any other judicial or administrative remedy, the Office of the City Attorney, on behalf of the City, may seek enforcement of the Director's or Hearing Examiner's order by filing a petition for enforcement in Spokane County Superior Court. B. The petition must name as respondent each person against whom the Director seeks to obtain civil enforcement. C. A petition t r civil enforcement may request monetary relief, declaratory relief, temporary or permanent injunctive relief, and any other civil remedy provided by law, or any combination of the foregoing. Section 21 Severability_ If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or p]uase of this Ordinance. Section 22. Effective Date, This Ordinance shall be in full force and effect five (5) days after publication of the Ordinance Summary. ATTEST: PASS by the City Council this day of October, 2003. City Clerk, Chris Bainbridge Mayor, Michael De leming ekcpd .srork tilesfordinaliccsfgcncral nui3ancrlrrcipnktd admin 10 -10-03 draft 7 Page 24 Proposed administrative draft general nuisance ordinance — C. Driskell Draft 7 — October 10, 2003 Approved as to Fortn: Deputy City Attorney, Cary P. Driskell Date of Publication: Effective Date: c/cpd wort files /ordinances +general nuisance/proposed admin 10 -10-03 draft 7 Page 25 VIA E -MAIL Mayor Mike Devlerning and Counci!members Cicv of Spokane Valley 11707 E, Sprague Avenue, Suite 106 Spokane Valley, WA 99206 Dear Mayor DeVleming and Councilmembers: October 9, 2003 Re: Bond Ordinance and Update Report an Status of .Bond Issue Idiehnel C, prmghy ill Urrii by @pre aLe ,com Dircat Fax Number! {549} 444 -7868 On October 14, 2003, the City Council of the City of Spokane Valley (the "City') will be considering its first reading of the Ordinance authorizing the issuance and sale of $9,430,000 in limited tax 'gercra1 obligation bonds (the "Bonds"). Enclosed with this letter is hotly a redline- strikeout version of this Ordinance (reflecting the, changes that have been made since the earlier draft that you received) and a clean copy of the Sarno document for your review and consideration on October l 4- Twill also be at the meeting on October 14 to respond to any questions or concerns that any of you might have. Since we last reported to you, we have been working with City staff, Sean leatts of Ueli Brothers (your underwriter) and Lindsay Sovde of Seattle Northwest Securities Corporation who has recently been retained as financial advisor to the City on this bond issue on the development of the Preliminary Official Statement to be used to sell the bonds, the rating r aency presentati which will be made late ,text week and other bond doctunents. i did want to call to your attention the following issues relative to this Ordinance; (1) The Ordinance provides for the formation of an "Operating Reserve Account" which will he initially funded at the level of $100,000, growing to $300,000 by 2009. The purposes of this account will be to provide a "back -up" source of funds for CeuterPlace, () You will note that tljei are numerous blanks in the Ordinance referring to bond insurance. As you know, it has long been contemplated that bond insurance would be purchased For these bonds. However, the Bond insurer has yet to be selected and probably will not be selected until alter the vi sit 1:o San Francisco later next week. Once the bond insurer is selected, their name will be put into this Ordinance. Additionally, some oi.`the bond insurers the City will Mayor Mike DeVleming and Councilmembers October 9, 2003 Page 2 be meeting with have requirements about language they want inserted into the Ordinance authorizing the issuance of bonds. We have enclosed with this letter a sample of the language (the most detailed language that could be requested by any of the prospective insurers) to give you some idea of what may be inserted into this Ordinance or an Exhibit prior to its final adoption which is scheduled for October 28, 2003. (3) There are also blanks in the Ordinance relative to the redemption of bonds. (This is sometimes known as "call protection" for the bonds.) These years will be filled in after consultation with Sean and Lindsay prior to the pricing of the bonds. (4) You might also wish to review the Section of the Ordinance that relates to the sale of the Bonds, which contains the grant of authority to the City Manager to execute the Bond Purchase Contract on behalf of the City. There is one blank in that Section, which will also be filled in closer to the sale date of the bonds after consultation with the financial advisor for the City. Additionally, please review these parameters and make sure they are consistent with your desires relative to this delegation. Under separate cover we will be forwarding to you a revised draft of the Preliminary Official Statement for your further review and additional comment opportunity. Many of you have resided in the City much longer and have more advance knowledge of this area than those of us who are working on the transaction and who have developed this document. We would very much appreciate any comments that you might have. Again, I will be at your meeting on October 14, 2003 to respond to any questions or concerns. Additionally, please fee] free to contact me by telephone or e-mail in advance of the meeting if you would like. Thank you again for this opportunity to work on this exciting project. MCO:ana Cc: Dave Mercier (w /enclosure) Nina Regor (w /enclosure) Ken Thompson (w /enclosure) Stan Schwartz (w /enclosure) Cary Driscoll (w /enclosure) Very truly yours, PRESTON GATES & ELLIS LLP By Michael C. Ormsby TO BE ADDED TO SECTION 16: BOND INSURANCE (if Mi3IA is Insurer) (b) Payments Under the Bond Insurance Policy. In the event that, on the payment date of the Bonds, the City or the Bond Registrar determines that there will not be sufficient money available in the Bond Fund to pay all principal of and interest on the Bonds due on such payment date, the City or the Bond Registrar shall immediately notify the Insurer or its designee on the same day by telephone or telegraph, confirmed in writing by registered or certified mail, of the amount of the deficiency. If the deficiency is made up in whole or in part, the Bond Registrar shall so notify the Insurer or its designee. In addition, if the Bond Registrar has notice that any Bondholder has been required to disgorge payments of principal or interest on the Bonds to a trustee in bankruptcy or creditors or others pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such Bondholder within the meaning of any applicable bankruptcy laws, then the Bond Registrar shall notify the Insurer or its designee of such fact by telephone or telegraphic notice, confirmed in writing by registered or certified mail. The Bond Registrar is hereby irrevocab]y designated, appointed, directed and authorized to act as attorney -in -fact for Bondholders as follows: (1) Nand to the extent there is a deficiency in amounts required to pay interest on the Bonds, the Bond Registrar shall (a) execute and deliver to U.S. Bank Trust National Association, or its successors under the Bond Insurance Policy (the "Insurance Paying Agent "), in form satisfactory to the Insurance Paying Agent, an instrument appointing the Insurer as agent for such Bondholders in any legal proceeding related to the payment of such interest and an assignment to the Insurer of the claims for interest to which such deficiency relates and which are paid by the Insurer, (b) receive as designee of the respective Bondholders (and not as Bond Registrar) in accordance with the tenor of the Bond insurance Policy payment from the Insurance Paying Agent with respect to the claims for interest so assigned, and (c) disburse the same to such respective Bondholders; and (2) If and to the extent of a deficiency in amounts required to pay principal of any Bonds, the Bond Registrar shall (a) execute and deliver to the Insurance Paying Agent in form satisfactory to the Insurance Paying Agent an instrument appointing the Insurer as agent for such Bondholder in any legal proceeding relating to the payment of such principal and an assigmaent to the Insurer of any of the Bonds surrendered to the Insurance Paying Agent of so much of the principal amount thereof as has not previously been paid or for which moneys are not held by the Bond Registrar and available for such payment (but such assignment shall be delivered only if payment from the insurance Paying Agent is received), (b) receive as designee of the respective Bondholders (and not as Bond Registrar) in accordance with the tenor of the Bond insurance Policy payment therefor from the Insurance Paying Agent, and (c) disburse the same to such Bondholders. Payments with respect to claims for interest on and principal of Bonds disbursed by the Bond Registrar from proceeds of the Bond Insurance Policy shall not be considered to discharge the obligation of the City with respect to such Bonds, and the Insurer shall become the owner of such unpaid interest and claims for the interest in accordance with the tenor of the assignment made to it under the provisions of this subsection or otherwise. Irrespective of whether any such assignment is executed and delivered, the City and the Bond Registrar hereby agree for the benefit of the Insurer that: (1) They recognize that to the extent the Insurer makes payments directly or indirectly (as by paying through the Bond Registrar), on account of principal of or interest on the Bonds, the Insurer will be subrogated to the rights of such Bondholders to receive the amount of such principal and interest for the City, with interest thereon as provided and solely from the sources stated in this Bond Ordinance and the Bonds; and (2) They will accordingly pay to the Insurer the amount of such principal and interest (including principal and interest recovered under subparagraph (ii) of the first paragraph of the Bond Insurance Policy, which principal and interest shall be deemed past due and not to have been paid), with interest thereon as provided in this Bond Ordinance and the Bonds, but only from the sources and in the manner provided herein for the payment of principal of and interest on the Bond to Bondholders, and will otherwise treat the Insurer as the owner of such rights to the amount of such principal and interest. (c) Rights of Insurer. (1) In connection with the issuance of additional general obligation bonds, the City shall deliver to the Insurer a copy of the disclosure document, if any, circulated with respect to such additional bonds. (2) Copies of any amendments made to the documents executed in connection with the issuance of the Bonds which are consented to by the Insurer shall be sent to Standard & Poor's Ratings Services, a Division of The McGraw -Hill Companies, Inc. (3) The Insurer shall receive notice of the resignation or renewal of the Bond Registrar and the appointment of a successor, other than the designated state fiscal agent. (4) The Insurer shall receive copies of all notices required to be delivered to Bondholders and, on an annual basis (or as soon as available from the office of the State Auditor) copies of the City's audited financial statements, and annual budget. (5) Any notice that is required to be given to a holder of Bonds or to the Bond Registrar pursuant to this Bond Ordinance shall also be provided to the Insurer. All notices required to be given to the Insurer under this Bond Ordinance shall be in writing - and shall be sent by registered or certified mail addressed to MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504 Attention: Surveillance. (6) The City agrees to reimburse the Insurer immediately and unconditionally upon detnand, to the extent permitted by law, for all reasonable expenses, including reasonable attorneys' fees and expenses, incurred by the Insurer in connection with (i) enforcement by the Insurer of the City's obligations, or the preservation or defense of any rights of the Insurer, under this Ordinance and any other document executed in connection with the issuance of the Bonds, and (ii) any consent, amendment, waiver or other action with respect to this Ordinance or any related document, whether or not granted or approved, together with interest on all such expenses from and including the date incurred to the date of payment at Citibank's Prime Rate plus 3% or the maximum interest rate permitted by law, whichever is less. In addition, the Insurer reserves the right to charge a reasonable fee in connection with its review of any such consent, amendment or waiver, whether or not granted or approved. (7) The City agrees not to use the Insurer's name in any published document including, without limitation, a press release or presentation, announcement or forum without the Insurer's prior consent; provided that the City may use the insurer's name in any general or particular factual statement to the effect that the Insurer insures certain outstanding City bonds. In the event that the City is advised by counsel that it has a legal obligation to disclose the insurer's name in any press release, public announcement or other published document, the City shall provide the Insurer with at least three (3) business days' prior written notice of its intent to use the Insurer's name together with a copy of the proposed use of the Insurer's name and of any description of a transaction with the Insurer and shall obtain the Insurer's prior consent as to the form and substance of the proposed use of the Insurer's name and any such description. The foregoing shall not apply to any request for public records duly received by the City pursuant to R.CW Ch. 42.17, and the City shall not be obligated to notify the Insurer of its intent to comply with any public disclosure request. (8) The City shall not enter into any agreement nor shall it consent to or participate in any arrangement pursuant to which Bonds are tendered or purchased for any purpose other than the redemption and cancellation or legal defeasance of such Bonds without the prior consent of the insurer. The provisions of this section shall be in effect only so long as the Bond Insurance Policy is in full force and effect. K%43142.O00O2 Mco-0..14M2 Oran Ordinance 03-084 ORDINANCE NO. 03-084 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, OF SPOKANE COUNTY, WASHINGTON, PROVIDING FOR THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE. AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,430,000 IN ORDER TO OBTAIN FUNDS TO PAY PART OF THE COSTS OF ACQUISITION AND CONSTRUCTION OF A REGIONAL CENTER AND RELATED CAPITAL FACILITIES; PROVIDING FOR THE SALE OF THE BONDS TO LEHMAN BROTHERS, OF SEATTLE, WASHINGTON; PROVIDING FOR THE REGISTRATION OF SAID BONDS; CREATING CERTALN FUNDS FOR SAID BONDS; FIXING THE INTEREST RATE, MATURITIES, FORM, TERMS AND COVENANTS OF SAID BONDS; PROVIDING CERTAIN COVENANTS WITH RESPECT TO FEDERAL TAx LAW; PROVIDING FOR THE PURCHASE OF MUNICIPAL BOND INSURANCE; PROVIDING CERTAIN COVENANTS WITH RESPECT TO ON -GOING DISCLOSURE; PROVIDING FOR THE EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO CITY OF SPOKANE VALLEY Spokane County, Washington LIMITED TAX GENERAL OBLIGATION BONDS, 2003 Principal Amount of $9,430,000 BE IT ORDAINED by the Mayor and the Members of the City Council of the City of Spokane Valley, of Spokane County, Washington, as follows: WHEREAS, the City of Spokane Valley (the "City "), of Spokane County, Washington, is a duly incorporated and existing municipal corporation organized and operating under the Constitution and laws of the State of Washington; WHEREAS, the City is authorized and empowered by RCW 35A.40, 35.37 and 39.46 to authorize, sell and deliver general obligation bonds to finance the acquisition, construction and installation of improvements and betterments to City facilities; WHEREAS, the City Council of the City (the "Council") has determined that it is in the best interests of the residents of the City to construct and equip a community center at Mirabeau Point, to be called CenterPlace; WHEREAS, the Council has determined that there are certain road improvements that are important to the City and should be completed; and Draft Bond Ordinance 03-084 Page 1 of 22 • 11:1cbainbridgc Ordinanccs \Draft ordinance 03-084 from Ormsby re 10 -14 -03 mtg.doe Draft Ordinance 03 -084 WHER AS. Lehman Brothers. of Seattle, Washington, has offered to purchase the City's lunited tax general obligation bonds in an amount of riot to exceed $9,430,000 under the terms hereinafter set forth; NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED as follows; Section 1: DEFINITION As used in this Ordinance, capitalized teens shall have the meanings provided in this Section. Words of the m.ascul.ine gender shall be deemed and construed to include correlative words of the feminine and neuter genders, and vice versa Words imparting the singular number shall include the plural numbers and vice versa, unless the context shall otherwise indicate. .Acquire, Acquiring or Acquisition includes the opening, laying out, establishment, purchase, construction, securing, installation. reconstruction, lease, gift, grant from the federal government, the State of Washington, any public body therein or any person or entity, the condemnation, transfer, option to purchase, other contract, or other acquirement, or any combination thereof. Bond 'Fund shall mean the "City of Spokane Valley General Obligation Bond Fund" created by this Ordinance. Bond Insurance shall mean a policy of municipal bond insurance provided by which shall insure payment of the principal of and interest on part or all of the bonds. Bond Purchase Contract means the written contract between Lehman, Brothers and the City to purchase the Bonds from the City_ Bond Register shall mean the registration records of the City, maintained by the Bond. Registrar, im which shall appear the names and addresses of the Registered Owner of the Bonds. 'Bond le!istrar shall mean either of the Washington State Fiscal Agencies or their successors in functions, as now or hereafter designated for the Bonds. Bond Year memos each one -year period that ends on the date selected by the. City, The first and last Bonds Yens may be short periods. if no day is selected by the City before the earlier of the final maturity date of the Bonds or the date that is five 5 years after the date of issuance of the Bonds, Bonds Years end on each anniversary of the date of issue and on the final maturity date of the Bonds. Bonds shall mean the hereinafter authoried limited tax general obligation bonds in the aggregate principal amount of not to exceed $9,430.000. Draft Bend Ordinance 03 -054 Page 2 of 22 Iii cbainbridge\Ord i nancr4Fhaft ordinance 03 -084 Gorr Ormsby re 10 -14 .03 mtg.doc Drri Fr Ordlinnncc 1la -01 City shall mean the City of Spokane Valley, of Spokane County, Washington, a duly incorporated and existing City organized and operating under the laws of the State of Washington acting by and through its employees, officers and City Council. Citv Clerk or Clerk shall mean the deJacto or de,jure City Clerk, or other officer of the City who is the custodian of the sea] o f the City and of the records of the proceedings of the City, or his/her successor in functions, i.f any_ City Manager shall mean the Chief Administrative Officer of the City, appointed by the Council, or his/her successor in function. if any. Code shall mean the Internal Revenue Code of 1986, as amended. and the Treasury 'Regulations promulgated thereunder. Commission shall mean the Securities & Exchange Commission. Cost of the Project or Costs of the Project or any phrase of similar import, shall mean all or any part designated by the City of the costs of the Project, or interest therein, which costs, at the option of the City, may include all or any part of the incidental costs pertaining to the Acquisition of the Project, including, without limitation: (1) Preliminary expenses advanced by the City from funds available for the use therefor, or advanced by the federal government, or from any other source, ,with approval of the Council, or any combination thereof; (2) The costs of making surreys, audits, preliminary plans, other. pJans, specifications, estimates of costs and other preliminaries; (3) The costs of appraising printing, estimates, advice, Services of engineers, architects, financial consultants, attorneys at law, clerical help, or other agents or employees; (4) The costs of contingencies; (5) The costs of issuance of Bo.nds; (6) The costs of funding and shoe -ternD financing, revenue warrants, bonds anticipation bonds or other temporary loans appertaining to the Project, and of the incidental expenses incurred in connection with such loans; (7) The Acquisition costs of any properties, rights, easements, or other interest in properties, or any licenses, privileges, agreements and franchises; and (8) All other expenses necessary or desirable and appertaining to the Project, as estimated or otherwise ascertained by the City. Draft Ruud Oixlinr mcc 03 -084 Fags 3 of 22 H:Ichainbi a \OrdinauCes'•DrnB ord 03 - 0714 fmm Ormsby re l0 -] - untg,doc Draft Ordinance 03-084 DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for the Bonds, or any successor or substitute depository for the Bonds. Finance Director shall mean the Director of Finance and Administrative Services of the City, or his or his/her successor in functions, if any. Financial Advisor means Seattle - Northwest Securities Corporation, of Seattle, Washington. Improvement(s) includes the buildings, structures and appurtenances constructed and equipped with the proceeds of the Bonds. Mayor shall mean the de facto or de jure Mayor of the City, or any presiding officer or titular head of the City or his/her successor in functions, if any. MSRB means the Municipal Securities Rulernaking Board or any successor to its functions. Net Proceeds when used with reference to the Bonds, shall mean the face amount of the Bonds, plus accrued interest, if any, and original issue premium, if any, and less original issue discount, if any. NRMSR means a nationally recognized municipal securities information repository. Operating Reserve Account shall mean the "City of Spokane Valley CenterPlace Operating Reserve Account" created by this Ordinance. Project shall mean the undertaking or undertakings of Acquiring the Improvements described herein. Project Fund shall mean the "City of Spokane Valley Capital Improvement Project Fund" created by this Ordinance for the purpose of paying a portion of the Costs of the Project. Registered Owner or Registered Owners shall mean the person or persons whose names and addresses shall appear on the Bond Register maintained by the Bond Registrar, as the owner or owners of the Bonds. Rule means the Commission's Rule 15c2 -12 under the Securities & Exchange Act of 1934, as the same may be amended from time to time. SID means the State information depository for the State of Washington. Draft Bond Ordinance 03 -084 Page 4 of 22 H;lcbainbridge\Ordinances\Dmft ordinance 03-084 from Ormsby rc 10 -14 -03 mtg.doc Draft Ordinance 03 -084 Section 2: THE PROJECT The City will acquire, contract and install the following improvements, (collectively the "Project "): (1) The construction of a new regional and community center, CenterPlace at Mirabeau Point, ( "CenterPlace ") to house a large regional meeting room, a conference center for community and cultural activities and a senior center, including Furnishings, appurtenances and equipment; (2) The Acquisition and installation of road improvements, including: (a) 16 Avenue (Dishman -Mica Road to Pines Road); (b) Park Road (8 Avenue to Appleway Avenue); (c) Evergreen Road (16 Avenue to 2 Avenue); and (d) Other road construction and improvement projects as set forth in the Capital Improvement Plan of the City. (3) Payment of engineering fees, administrative costs, legal fees and all other costs incidental thereto, together with the purchase of all appurtenances and machinery necessary or useful for said Project. Section 3: COST OF THE PROJECT The cost of CenterPlace is estimated to be approximately 510,000,000, of which not to exceed 57,000,000 will be financed by the proceeds of the Bonds. The total cost of the street improvements is estimated to he $20,386,700, of which not to exceed $2,430,000 will be financed by the proceeds of the Bonds. Any additional costs of the Project will be paid from other legally available funds, including private donations, loan and grant funds and other legally available funds of the City. Section 4: PLEDGE OF FAITH AND CREDIT; TAX LEVIES The Bonds are limited tax general obligations of the City and, as such, the full faith and credit of the City are hereby pledged for their payment, within the appropriate Constitutional and statutory limitations pertaining to non -voted general obligations. The officers now or hereafter charged by law with the duty of levying taxes for the payment of said Bonds and the interest thereon shall, in the manner provided by law, make annual tax levies upon all of the taxable property within the City sufficient, together with other legally available funds, to meet the payments of principal and interest maturing and accruing as set forth herei.n, having always in mind the Constitutional and statutory tax limitations pertaining to non -voted general obligations. Draft Bond Ordinance 03 -084 Paee 5 of 22 I- AcboinbridgclOrdinsnecsADraft on inance 03-084 from Ormsby re 10 -14-03 mtg.doe Draft Ordinance 034)84 Section 5: REGISTRATION, PLACE AND MANNER OF PAYMENT (a) Registrar /Bond Register. The City hereby requests that the Finance Director adopt the system of registration approved by the Washington State Finance Committee. The City shall cause a Bond Register to be maintained by the Bond Registrar. So long as any portion of the Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of the Bonds at its principal office. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient records for the registration and transfer of the Bonds which shall at all times be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bonds, transferred or exchanged in accordance with the provisions of such Bonds and this Ordinance, and to carry out all of the Bond Registrar's powers and duties under this Ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of the Bonds as the absolute owner thereof for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bonds shall be made only as described herein, but such registration may be transferred as herein provided. All such payments made as described herein shall be valid and shall satisfy and discharge the liability of the City upon such Bonds to the extent to treat the person in whose name any Bonds is registered as the absolute owner thereof for all purposes of this Ordinance and any applicable laws, notwithstanding any notice to the contrary received by the Bond Registrar or the City. (c) DTC Acceptance/Letter of Representations. The Bonds initially issued shall be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City shall execute and deliver to DTC (or has heretofore executed and delivered to DTC) a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds in respect to the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that is permitted or required to be given to Registered Owners under this Ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC), tle . selection by DTC or any DTC participant of any person to receive payment in the event of a partial redemption of the Bonds, or any consent given or other action taken by DTC as the Registered Owner. For so long as any Bonds is held in fully immobilized form hereunder, DTC or its successor depository shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC or its nominee and shall not mean the owners of any beneficial interest in such Bonds. Draft Band Ordinance 03 -084 Page G of 22 H:lcbainhridee \Ord nances\Draft ordinance 03 -084 from Ormsby re 10 -14-03 mtg.doc Draft Ordinance 03-04 (d) Use of Depository. (i) The Bonds shall be registered initially in the name of CEDE & Co., as nominee of DTC, with one Bonds for each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such immobilized Bonds, or any portions thereof, may not hereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the City pursuant to subsection (ii) below or such substitute depository's successor; or (C) to any person as provided in subsection (iv) below. (ii) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository, or a determination by the City to discontinue the system of book entry transfers through DTC or its successor (or aiy substitute depository or its successor), the City may appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (iii) In the case of any transfer pursuant to clause (A) or (B) of subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the City, issue a single new Bonds for each maturity then outstanding, registered in the name of such successor or such substitute depository, or its nominee, as the case may be, all as specified in such written request of the City. (iv) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the City determines that its is in the best interests of the beneficial owners or the Bonds that such owners be able to obtain Bonds in certificated form, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fully immobilized form. The City shall deliver a written request to the Bond Registrar together with a supply of definitive Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in such denominations and registered in the names of such persons as are requested in such written request. (e) Transfer or Exchange of Registered Ownership Change in Denominations. The registered ownership of any Bonds may be transferred or exchanged, but no transfer of any such Bonds shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bonds duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bonds and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bonds (or Bonds at the option of the new Registered Owner) or the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the Drafi Bond Ordinance. 03 -084 Page 7 of 22 H:Icbainbridge\Ordignncrs\Draft ordinance 03 -084 from Ormsby re 10 -14-03 mte.doc Draft Ordinance 03 -064 person or persons listed as the assignee on the assignment form appearing on the surrendered Bonds, in exchange for such surrendered and canceled Bonds. Any Bonds may be surrendered to the Bond Registrar and exchanged, without charge, for any equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bonds during the 15 days preceding any interest payment or principal payment date. (f) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. For so long as all Bonds are in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter to Representations. In the event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day . of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the -Bond Registrar. Section 6: REDEMPTION OF BONDS PRIOR TO MATURITY A. Optional Redemption of Bonds. Bonds maturing in the years 200 through 20 inclusive, shall not be subject to redemption prior to their respective maturity dates. The City hereby reserves the right and option to redeem the Bonds maturing on and after December 1, 20 at any time on or after December 1, 20 , in whole or in part (maturities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar or DTC shall determine), at the price of par plus accrued interest, if any, to the date of redemption. B. Notice of Redemption. Notice of any such redemption shall be sent by the Bond Registrar by first -class mail, postage prepaid, not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption, to the Registered Owner of each l3orld to be redeemed at the address shown on the Bond Register. So long as the Bonds are in book form, notice of redemption shall be given as provided in the Letter of Representations. This requirement shall be deemed to be complied with when notice is mailed as herein provided, regardless of whether or not it is actually received by the Registered Owner of any Bond to be redeemed. In addition, such redemption notice shall be mailed within the same period, postage prepaid, by first -class mail, to Lehman Brothers, of Seattle, Washington, or its successor as Underwriter, and to Moody's Investors Service, in New York, New York, or its successor, if any, but such mailing shall not be a condition precedent to the redemption of such Bonds. The City shall also cause the Bond Registrar to provide notice of redemption (at least thirty (30) days) to each NRMSIR and SID, if any, in accordance herewith. Draft Bond Ordinance 03-054 Page 8 of 22 H:lchainbridge\Ordinanccs\Drnft ordinance 03 -084 from Ormsby re 10 -14 -03 mtg.doc Draft Ordinance 03 -084 C. Selection of Bonds for Redemption. For as long as the Bonds are held in fully immobilized form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational alTa ngementvs then in effect at DTC. In all other cases, if the City redeems at any one time fewer than all of the Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar) in increments of $5,000. In the case of a Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. D. Effect of Redemption. When so called for redemption, such Bonds shall cease to accrue interest on the specified redemption date, provided funds for redemption are on deposit at the place of payment at that time, and such Bonds shall not be deemed to be outstanding as of such redemption date. E. Purchase on Open Market. The City reserves the right to purchase any of the Bonds on the open market at any time at any price. Section 7: BOND FUND There is hereby created, and shall be maintained by the Finance Director, a fund known as the "City of Spokane Valley Limited Tax General Obligation Bond Fund" (the "Bond Fund ") which shall be drawn upon for the sole purpose of paying the principal of and interest on the Bonds. Money on deposit in the Bond Fund not i.nunediately needed to pay such interest or principal may be temporarily deposited in such institutions or invested in any obligations which are legal investments for City funds. Any interest earnings from the investment of such money shall be deposited into the Bond Fund. Section 8: PROJECT FUND There is hereby created, and shall be maintained by the Finance Director, a fund known as the "City of Spokane Valley Capital Improvement Project Fund" (herci.n called the "Project Fund "), into which shall be deposited the proceeds of the sale of the Bonds. Moneys in the Project Fund shall be used for the payment of part of the cost and expense of the Acquisition and installation of the Project. All interest earnings on moneys invested from the Project Fund shall be deposited into said Project Fund. The City's share of any liquidated damages or other moneys paid by defaulting contractors or their sureties will be deposited into said Project Fund to assure the Acquisition and completion of the Project. Draft bond Ordinance 03 -084 Page 9 of 22 H:ticbainbridgelOrdinances\Drnfl ordinance 03-084 GUru Ormsby rc 10 -14 -03 mtg.dcx Draft Ordinance 03 -084 When the Project has been completed and all costs related thereto, including all principal of and interest on the Bonds is paid in full, any moneys remaining in the Project Fund may be deposited in the Bond Fund, created hereafter, or used for other capital projects of the City. Section 9: OPERATING RESERVE ACCOUNT There is hereby created and shall be maintained by the Finance Director a fund known as the "City of Spokane Valley CenterPlace Operating Reserve Account" (herein called the "Operating Reserve Account "), into which shall be deposited (from funds other than proceeds of the Bonds), the sum of. 5100,000 on or before January 1, 2004. The City covenants to increase the balance of the Operating Reserve Account to 5300,000 by January 1, 2009. Moneys in the Operating Reserve Account shall be available for use in the payment of expenses associated with CenterPlace, including but not limited to operation and maintenance expenses, debt service and capital repairs. If the City makes a draw on the funds in the Operating Reserve Account, it shall at the same time file a plan for the replenishment of the funds withdrawn. The City covenants to use all reasonable efforts to follow such a plan for replenishment. Section 10: PROVISION FOR DEFEASANCE OF THE BONDS In the event that money and/or direct obligations of, or obligations guaranteed by the United States (hereinafter referred to as "government obligations ") as provided by Section 39.53 RCW, as it now reads or is hereafter amended, maturing or having guaranteed redemption prices, at such time or times and bearing interest to be earned thereon in such amounts as are sufficient (together with any resulting cash balances) to redeem and retire part or all of the Bonds in accordance with their terms, are hereafter irrevocably set aside in a special account and pledged to effect such redemption and retirement, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for and such Bonds shall then cease to be entitled to any lien, benefit or security of this Ordinance, except the right to receive the funds so set aside and pledged, and such Bonds shall no longer be deemed to be outstanding hereunder. Sectionll EXECUTION OF THE BONDS Without unreasonable delay the City shall cause the Bonds to be prepared, executed and delivered, which Bonds shall be typed, lithographed or printed with steel engraved or lithographed borders. Each Bond shall be executed on behalf of the City by the Mayor and shall be attested by the Clerk (both of which signatures shall be by manual signature). Each Bond shall be substantially in the form as set forth in Exhibit "A" attached hereto and made a part hereof. The Bonds shall then be delivered to the Registrar for registration and delivery. Only such Bonds as shall bear thereon a Registration Certificate in the form hereinafter recited, manually executed by the Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Ordinance, and such Registration Certificate shall be conclusive evidence that the Draft 13ond Ordinance 03 -084 Page 10 of 22 H.lcbainbridge\Ordinances1OnaR ordinance 03 -084 from Ormsby re 10 -14-03 mtg.doc Draft Ordinance 03.084 Bonds so registered have been duly executed and delivered hereunder and are entitled to the benefits of this Ordinance. Section 12: SALE OF BONDS The City hereby authorizes and approves the sale of the Bonds to Lehman Brothers, of Seattle, Washington, in accordance with the terms and conditions set forth in the Bond Purchase Contract. The City hereby delegates to the City Manager the authority to execute the Bond Purchase Contract on behalf of the City in substantially the form filed with the City, subject to the following limitations: (a) The principal amount of the Bonds does not exceed $9,430,000; (b) The interest rate on the Bonds does not exceed a total interest cost (TIC) of %; (c) The Bond Purchase Contract is reviewed and approved by the Financial Advisor for the City; and (d) The Bond Purchase Contract is executed prior to November 5, 2003 and the closing of the Bonds shall occur on or before November 26, 2003. The City Manager is hereby authorized and directed to do all things necessary for the prompt execution and delivery of the Bonds and for the proper use and application of the . proceeds of sale thereof. Section 13: TAX COVENANTS; SPECIAL DESIGNATION A. Tax Covenants: The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of such Bonds pursuant to Section 148 of the Code which will cause the Bonds to be "arbitrage bonds" within the meaning of said section and said regulations. The City will comply with the requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) throughout the term of the Bonds. The City hereby further covenants that it will not take any action or permit any action to be taken that would cause the Bonds to constitute "private activity bonds" under Section 141 of the Code. 13. Special Designation: The Bonds are hereby designated as "Qualified Tax Exempt Obligations" for purposes of Section 265(b) of the Code. The City does not expect to issue tax - exempt obligations in an aggregate principal amount in excess of $10,000,000 during the 2003 calendar year. Section 14: PRELIMINARY OFFICIAL STATEMENT DECLARATION The Mayor is hereby authorized to execute a certificate deeming the preliminary official statement dated , 2003 "final" for purposes of Rule 15c2 -12 of the Securities and Draft Bond Ordinance 03.084 Page 11 of 22 H:'cbaintsiidgc'Ordinanccs \Draft ordinance 03 -084 from Ormsby re 10 -14-03 mtg.doc Draft Ordinance 03-08-4 Exchange Commission and other certificates required by the securities laws of various states and the United States of America. Section 15: UNDERTAKING TO PROVT.DE Oil -GOING DISCLOSURE (a) Contract/Undertaking. This section constitutes the City's written undertaking for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule. (b) Financial Statements /Operating Data. The City agrees to provide or cause to be provided to each NRJMSTR and to the SID, if any, in each case as designated by the SEC in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2004 for the fiscal year ended December 31, 2003): 1. Annual financial statements, which statements may or may not be audited, showing ending fund balances for the City's general fund prepared in accordance with the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under the heading "Budgeting." 2. The assessed valuation of taxable property in the City; 3. Ad valorem taxes due and percentage of taxes collected; 4. Property tax levy rate per $1,000 of assessed valuation; and 5. Outstanding general obligation debt of the City. Items 2 -5 shall be required only to the extent that such information is not included in the annual financial statements. The information and data described above shall be provided on or before nine months after the end of the City's fiscal year. The City's current fiscal year ends December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to each then existing NRMSIR and the STD, if any. In lieu of providing such annual financial information and operating data, the City may cross - reference to other documents provided to the NRMSIR, the SID or to the SEC and, if such document is a final official statement within the meaning of the Rule, available from the MSRB. If not provided as part of the annual financial information discussed above, the City shall provide the City's audited annual financial statement prepared in accordance with the Budgeting Accounting and Reporting .System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 and RCW 43.09.200 (or any successor statutes) when and if available to each then existing NRMSIR and the SID, if any. Draft Bond Ordinance 03 -084 Paige 12 of 22 H :lcbainbridge \Ordinances \Draft ordinance 03 -084 from Ormsby re 10 -14-03 mtg.doc Draft O,diki occ 03 -084 (c) Material Events. The City agrees to provide or cause to be provided, in a timely manner to the SID, if any, and to each NRMSIR or to the Iv1.S.R13 notice of the occurrence of any of the following events with respect to the Bonds, if material; • Principal and interest payment delinquencies; • Ton- payment related defaults; • Unscheduled draws on debt service reserves reflecting financial difficulties; • Unscheduled draws on credit enhancements reflecting financial difficulties; • Substitution of credit or liquidity providers, or their failure to perform; • Adverse tax opinions or events affecting the tax- exempt status of the Bonds; • Ivlodifi cations to the rights of Bond owners; • Bond calls (optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is griven pursuant to Exchange Act Release 34- 23856); • Defeasanc es; • Release, substitution or sale of property securing repayment of the Bonds; and • Rating changes. Solely for purposes of disclosure, and not intending to modify this undertaking, the City advises that no debt service reserves or property secure payment of the Bonds. (d) Notification Upon Failure to Provide Financial Data Tile City agrees to provide or cause to be provided in a timely manner, to each RMSIR or to the MSRB and to the SID, if any, notice of its failure to provide the annual financial information described in Subsection (b) above on or prior to the date set forth in Subsection (b) above. (e) Termination/Modification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds- Any provision of this section. shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that the portion of the Rule that requires that provision is invalid, has been repealed retroactively or Otherwise does not apply to the Bonds and (2) n.odi:6.es each NR,MSIR and the SID, if any, of such opinion and the cancellation of this section. The City may amend this section with an opinion of nationally recog ni zed bond counsel in accordance with the Rule. In the event of any amendment of this section the City shall describe such amendment in the next annual report, and shall include, a iiau explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data.bei.i3g presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same an.anner as for a material event under Subsection (c), and (ii) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the pasts of the former accounting principles. Dnii Hnnd Ordinance 03.081 Page 13 of 22 I bainbridge\Ordinanc.cs \draFt ordinance 03 -084 from Ormsby rc I 0 - 14 - 03 mlg.doc Draft Ordinance 03 -084 (f) Bond Owner's Remedies Under This Section. The right of any bondowner or beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of the City's obligations under this section, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds. For purposes of this section, "beneficial owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories. Section 16: BOND LNSURANCE The City has determined to purchase Bond Insurance for all or part of the Bonds. The City Council hereby approves the commitments of to provide a bond insurance policy guaranteeing the payment when due of principal of and interest on the Bonds (the "Bond Insurance Policy ") and authorizes and directs all proper officers, agents, attorneys and employees of the City to cooperate with in preparing such additional agreements, certificates, and other documentation on behalf of the City as shall be necessary or advisable in providing for the Bond Insurance Policy. Section 17: SEVERABILITY If any one or more of the covenants or agreements provided in this Ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this Ordinance and shall in no way affect the validity of the other provisions of this Ordinance or of the Bonds. Section 18: RATIFICATION All actions (not inconsistent with the provisions of this Ordinance) heretofore taken by the City, and its employees, with respect to the Acquisition of the Improvements, and the issuance, sale and delivery of the Bonds, are hereby in all respects ratified, approved, and confirmed. Section 19: REPEALER All ordinances, ordinances, or parts thereof in conflict herewith, to the extent of such conflict, are hereby repealed. Section 20: EFFECTIVE DATE This Ordinance shall be in effect from and after its adoption and publication of the title hereof, substantially in the form attached hereto as Exhibit "A ", incorporated herein by reference. Draft Bond Ordinance 03 -034 Page 14 of 22 H:khainbridge \Ordinances1Dntft ordinance 03 -084 from Ormsby re 10 -14 -03 mtg.doc Draft Ordinance 03 -084 ATTEST: (SEAL) FIRST READING: October 14, 2003. SECOND READING: October 28, 2003. PASSED AND ADOPTED with a roll call vote by the City Council of the City of Spokane Valley, Spokane County Washington, this 28 day of October, 2003. City Clerk CITY OF SPOKANE VALLEY, Spokane County, Washington Mayor Draft 13ond Ordinance 03-084 Page 15 of 22 H_ \bainbridgelOrdinanccs \Draft ordinance 03 -084 from Ormsby re 10 -14 -03 mtg.doc Draft Ordinance 03 -0S4 CERTIFICATION I, the undersigned City Clerk of. the City of Spokane Valley, of Spokane County, Washington, HEREBY CERTIFY that the foregoing Ordinance is a full, true and correct cow of an Ordinance duly adopted at a regular meeting of the City Council of said. City, duly and regularly held at the regular meeting place thereof on October 28, 2003 of which meeting all members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Ordinance was adopted by the following vote: AYES, and in favor thereof, Councilmembers: NOES, Councilmembers: ABSENT, Councilmembers: ABSTA.I.N, Councilmembers: I FURTHER CERTIFY that I have carefully compared the same with the original Ordinance on file and of record in my office; that said Ordinance is a full, true and correct copy of the original Ordinance adopted at said meeting; and that said Ordinance has not been amended, modified or rescinded since the date of its adoption, and is now in full force and effect. IN WITNESS WHEREOF, I have set my hand and affixed the official seal of said City on October 28, 2003. (SEAL) CITY OF SPOKANE VALLEY City Clerk Draft Bond Ordinance 03 -084 Page 16 of 22 H:1chainbridge \Ordinance∎Draf ordinance 03 -084 from Ormsby re 10 -14 -03 mtg.doc Draft Ordinance 03 -084 No. $ See Reverse Side for Additional Provisions EXHIBIT "A" - Page 1 CITY OF SPOKANE VALLEY LIMITED TAX GENERAL OBLIGATION BOND, 2003 Principal Amount [Form of Bonds] UNITED STATES OF AMERICA STATE OF WASHINGTON COUNTY OF SPOKANE (The City has designated the Bonds of this Series as "Qualified Tax- Exempt Obligations ") Interest Rate Maturity Date The CITY OF SPOKANE VALLEY, of Spokane County, Washington, (the "City "), a duly incorporated and existing city under and by virtue of the laws of the State of Washington, hereby acknowledges itself indebted and for value received promises to pay to CEDE & CO. on or before the Maturity Date indicated above, the principal sum set forth above, and to pay interest thereon from the City of Spokane Valley Limited Tax General Obligation Bond Fund from November , 2003, or the most recent date to which interest has been paid or duly provided for, at the rate per annum specified above, payable at maturity or any date of prior redemption of the Bonds. Interest shall be calculated on the basis of a 360 -day year. Both principal of and interest on this Bonds are payable in lawful money of the United States of America. For so long as the Bonds of this issue is in fully immobilized form, payment of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Letter of Representations from the City to The Depository Trust Company. In the event that the Bonds of this issue are no longer in fully immobilized form, both principal and interest on this Bonds shall be paid by check or draft mailed to the Registered Owner at the address appearing on the Bond Register on the first day of the month preceding the maturity date, upon presentation and surrender of this Bonds by the Registered Owner at the principal office of the Bond Registrar. Draft Ordin nce03 -084 Reference is hereby made to additional provisions of this Bonds set forth on the reverse side hereof and such additional provisions shall for all purposes have the same effect as if set forth in this space. This Bonds shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. IT IS HEREBY CERTIFIED AND DECLARED that this Bonds is issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and ordinances and resolutions of the City, specifically the Ordinance No. of the City, adopted on October 28, 2003, (the "Bond Ordinance "), and that all acts, conditions and things required to be done precedent to and in the issuance of this Bonds have happened, been done and performed. IN WITNESS WHEREOF, the City has caused this Bonds to be executed by the manual signature of its Mayor, and attested by the manual signature of its Clerk, with the official seal of the City impressed hereon this day of November, 2003. ATTEST: (SEAL) EXHIIBIT "A" - Page 2 [Manual Signature) City Clerk CITY OF SPOKANE VALLEY, Spokane County, Washington [ Reverse Side of Bonds ADDITIONAL PROVISIONS This Bond is issued pursuant to and in full compliance with the Constitutim and laws of the State of Washington, particularly the and also pursuant to all proceedings duly adopted and authorized by the City, more particularly the Bond Ordinance. Capitalized terms used herein shall have the meanings given to them by the Bond Ordinance. The City has reserved the right and option to redeem and call the Bonds maturing on and after December 1, 20_ at any time on or after December 1, 20 , in whole or in part (maturities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar or DTC shall determine), at the price of par plus accrued interest, if any, to the date of redemption. Unless waived by the Registered Owner of any Bonds to be redeemed, notice of any such redemption will be given not less than thirty (30) nor more than sixty (60) days prior to anual Si nib Mayor Draft Ordinance 03 -4154 the date fixed for redemption by first -class mail, postage prepaid, to the address appearing on the Bond Roister. The Bonds are issued by the City in the aggregate principal amount: of not to exceed $9,430,000 for the purpose of constructing, acquiring and equipping City facilities. To provide for the payment of the Bonds, the City has pledged its full faith and credit for the payment of the Bonds, within the appropriate Constitutional and statutory limitations pertaining to non -voted general obligations. The City shall make annual tax levies upon all of the taxable property within the City sufficient, together with other legally available funds, to meet the payments of principal and interest maturing and accruing as set forth herein, having always in mind the Constitutional and statutory tax limitations pertaining to non voted general obligations. Reference is hereby made to the Bond Ordinance for a description of the covenants and conditions under which this Bond is issued. The City hereby covenants and agrees with the Registered Owner of this Bond that it will keep and perform all of the covenants of this Bond and of the Bond Ordinance to be kept and performed by the City. This Bond is transferable by the Registered Owner hereof in person, or by his attorney duly authorized in writing, upon presentation and surrender of this Bond at the principal office of the Registrar. Upon such transfer, a new fully registered Bond of the same denomination, maturity and interest rate will be issued to the transferee, in exchange therefor. I, the undersigned City Clerk of the City of Spokane Valley, of Spokane County, Washington, DO HEREBY CERTIFY that the legal opinion of Preston Gates & Ellis LLP, of Seattle, Washington, which opinion was dated the date of delivery of the Bonds described therein, was delivered to me on said date, and is now part of the permanent records of the City. Date of Authentication: This Bond is one of the City of Spokane Valley General Obligation Bonds, 2003, dated as of November , 2003, and described in the within- mentioned Bond Ordinance. E•XIIII31'T "A" - Page 3 LEGAL OPINION CITY OF SPOKANE VALLEY, Spokane County, Washington CERTIFICATE OF AUTHENTICATION [Manual Si ng aturel Clerk Draft Ordinance 03 -084 EXJI:BIT "A" - Page 4 WASHINGTON STATE FISCAL AGENCY, as Bond Registrar By (manual signature Authorized Officer Drafi Ordinance 03 -0R4 CITY OF SPOKANE VALLEY Spokane County, Washington GENERAL OBLIGATION BONDS - $9,430,000 The Title of Ordinance No. , adopted by the City Council of the City of Spokane Valley on October 28, 2003, is as follows: AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, OF SPOKANE COUNTY, WASHINGTON, PROVIDING FOR THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,430,000 IN ORDER TO OBTAIN FUNDS TO PAY PART OF THE COSTS OF ACQUISITION AND CONSTRUCTION OF A REGIONAL CENTER AND RELATED CAPITAL FACILITIES; PROVIDING FOR THE SALE OF THE BONDS TO LEEMAN BROTHERS, OF SEATTLE, WASHINGTON; PROVIDING FOR THE REGISTRATION OF SAID BONDS; CREATING CERTAIN FUNDS FOR SAID BONDS; FIXING- THE INTEREST RATE, MATURITIES, FORM, TERMS AND COVENANTS OF SAID :BONDS; PROVIDING CERTAIN COVENANTS WITH RESPECT TO FEDERAL TAX LAW; PROVIDING FOR THE PURCHASE OF MUNICIPAL BOND INSURANCE; PROVIDING CERTAIN COVENANTS WITH RESPECT TO ON GOING DISCLOSURE; PROVIDING FOR THE EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO A copy of the entire Ordinance is on file with the City Clerk and available for review during normal office hours. ATTEST: (SEAL) EIHTBIT "B" - Page 1 City Clerk [Summary for Publication] CITY OF SPOKANE VALLEY, Spokane County, Washington Mayor Draft Ordinance 03 -084 CERTIFICATION OF BOND COUNSEL 1, the undersigned bond counsel to the City of Spokane Valley, of Spokane County, Washington, hereby certify that 1 have read the attached Summary of Ordinance No. , and that the same is true and complete and provides adequate notice to the public of the contents of said Ordinance. DATED this 28 day of October, 2003. EXHIBIT "B" - Page 2 By Michael C. Ormsby Preston I ate lEllis LLP 1 :h4EMORACdIJUM 70: FROM; GATE: SUBJECT: Attached is the latest draft: of the Preliminary Official Statement ( "P0S ") and the Bond Ordinance in redline form. We still have some i.nfonrlation that we would like to obtain for inclusion in the POS and are working on that. Amy is also working with Ken on the photograph of the rnap on the inside cover. If there are any additional changes or corrections that really " out" at you at this point, we will strive to make then in time for Sean co forward this on to the rating agencies and insurers in advance of the trip to San Francisco next week. The City Council will be considerin g the first reading of the Ordinance on Tuesday, October 14. 1 will be in and out of this office this weekend and should be in next week if you have any questions or issues that we should discuss- My direct dial number is (509)624 -7507. Thank you all for your continued assistance on this financing_ MC0:mco K'W6142401:10U:9VdCOYdCDJ42M9 Distribution List, City of Spokane Valley Financing • Michael C. Ormsby October 1.0, 2003 City of Spokane Valley Limited T'a General Obligation Bonds- Preliminary Official Statement A LAW FIRM I A LIMITED LIABILITY PARTNERSIIIP IMCLUOIHG OTHER LIMITED LIABILITY ENTITIES b11 'NEST RIVERSIDE AVENUE SUITE 1400 SPOKANE, 'NA 99291.9529 TEL; {509} 624 2146 FAIL! {509) 456 -0146 WWW.PRESTON.BATES.COM Anchoiaae Cane: d'AIUOa Flank Kong Orauge County Porllantl San Franelsca Sea11Ie Spokane Washington, GC PRELIMINARY OFFICIAL STATEMENT DATED , 2003 New issue Moody's: Applied For (Book -Entry Only) S &- Poortgior Fitch]: Applied-For (See "Ratings" Herein) Jr r the opinion of Preston Grates & Ellis LLP, Spokane, W rhington, Bond Counsel, interest Oh the Bonds is excluded from gross income subject La federal income taraliort pursuant to the Internal Revenue Code of 1986 and ,subject 10 certain conditions and assumptions described herein under ".TAX : ' 'MPTION " The Honds air not private activity hands. Interest . on the Bonds is included in the comp tiatiotd of certain feder[d saxes on corporations- The Cidjr )4473 m designated the Bonds as gdta1tfied tmr -i xempd obligations for investment by financial institutions. ` CITY OF SFOKAVE VALLEY, WASHINGTON ae LI, T 'D TAX Gi ER,4L OSLJGATIONBO DS., 2003 Dated As of date of deliver Due: December 1, as shown below The City of Spokane Valley, Washington, Limited Tax General Obligation Bonds, 2003 (the "Bonds°), will be issued as fully registered Bonds in the name of CEDE & Co., as nominee for The Depository Trust Company ( "DTC "), New York., New York DTC will at as securities depository for the Bonds. Individual purchases and sales oldie Bonds initially will be made in book -entry form only in dcnomimaoons of $5,000 or ;u1 }' integral multiple thereof. Purchasers will not receive certificates representing their o w n ership of thc $oriels. Interest on the Bonds will be payable on June 1, 2004 and semiannually thereafter on June 1 and December 1 of each year until their maturity or early redemption- So long as DTC or its nominee is the registered owner of the Bonds, the principal of and interest art the Bonds will be payable by the i;sc l agency of the State of Washington, currently The Bank of New York., in NEW York, New York (the "Bond Registraf ), directly Id. DTC which, in turn, is obligated to remit such principal and interest to the DTC participants for subsequent disbursement to the owners of the Bonds as described herein in Appendix C "THE BOOK - ENTRY ONLY SYSTEM,* Maturity 5chcdule Due Principal Interest Due Principal Interest. Dee 1 Amount Rate Meld CUSIP 4 Dec 1 Amount Rye Yid ?SII' # 2004 2019 2005 20 '10 2C+O6 2021 2047 /cp 2 2{}0g /023 20p9 2024 2010 2025 2011 2026 2012 2027 2013 2028 2014 2029 2015 2 030 2016 2031 2017 232 2018 2033 $ % Tarn Bonds due December 1, 20 -Yield % (Plus accred interest from date of delivery) 'Ile Bonds arc subject to redemption by the City prior to their stated nad as described herein in ¢DFSCRIPT1ON OF THE BO I '])R ed emptio n." The proceeds of the Bonds will be turd to fund a portion of he construction of CnnerPlace at Mirabeau Point, and to pay costs of issuing the Bonds. See 'DESCRPTTON OF THE BONDS° herein The City, as authorized by !ate and ao ordin. r,ce of as Caurk iI, has irrevocably pl{xlged that, unless the principal of and interen on the Bonds are paid from.other allowable s ourcrs, it wit! make annual levies of taxes, within the constitutional and statutory limkatroos provided by law without a vote of the electors of the City, upon all of the prop in the Ciry subject to tv viva i.n abaouurs sufficient is pay such principal and iuteresr as the same shall become. dun Ste "sEcuRrry AND SOURCES OF PA11]N'T FOR THE BONDS - " The ]3oods do not constitute debtor inrl btcdocss of the State o rs1Or a shington, or any political subdivison thereof other than thc City, See "TAXfNG POWERS AND DEBT CAPACITY for a discussion of laws that limit how much a City may tae. T1rs au� rpiage Mirth /3 Cega n nr r=for qu 7 erence air. , aryl as rile: n saran pay of fraiffrors iota Ord t1r entire C Sd I StazErn st m u52 iFs t 7t th to essential to tiv 7Thiking Of.S2 ,467 f itair %7f fJa35 2, ' T ' hc Bonds are offered by the Underwriter, when, as and if issued, subject to the agproving opinion of Preston Gates & ]Jlis LLP, Spokane, Washington, Bond Counsel, and to certain other conditions. Certain legal matters will be passed upon by Preston Gates & Ellis LLP, Spokane, bra .thFn ton, as disclosure counsel. Certain legal matters ail! be passed upon by underwr'iter's courted (to be deterrnined)- Ir is anticipated that the Bonds will be available for delivery by Fast Automated Securities Transfer, through the facilities of The Depository Trust Company in New York, New Yorl: an or abour November -- , 2003. DatetL• October 2cO3LEFIMA BROTHERS CITY OF SPOKANE VALLEY, WASHINGTON 11707 E. Sprague Avenue, Suite 106 Spokane Valley, Washington 99206 (509) 921 -1000 Fax (509) 921 -1008 www.spokanevalley.orgo Elected Michael DeVieming Diana Wilhite Richard Denenny Michael Flanigan Richard Munson Gary Schimmels Steve Taylor Officials Mayor Deputy Mayor Council Member Council Member Council Member Council Member Council Member Appointed Officials David Mercier City Manager Nina Regor Deputy City Manager Ken Thompson Finance & Administrative Services Director Christine Bainbridge City Clerk Stanley Schwartz City Attorney Bond Counsel Preston Gates & Ellis LLP Spokane, Washington Underwriter Lehman Brothers Seattle, Washington Financial Advisor Seattle - Northwest Securities Corporation, Inc. Seattle, Washington ( 1 ) Neither the Information on the City uehsite, ,vr airy links frtsn that uelisitg is hart of this Cfxial Statement, and such ilrormation carnet Ix idial upon to k aawate as of the date of this Official Statemei nor shod any such iry6nn Lion IT relied upon to make kr.,iono t decisions negating dr Bonds. * Preliminary, subject to change No dealer, broker, salesperson or other person has been authorized by the City or by the Underwriter to give any information or to make any representations, other than as contained in this Preliminary Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Preliminary Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall there any sale of the Bonds by any person, in any jurisdiction in which it is unlawful for such persons to make such offer, solicitation or sale. The information set forth herein has been furnished by the City, DTC and certain other sources that arc believed to be reliable but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Underwriter. The information and expressions of opinion contained herein are subject to change without notice. Any statements made in this Preliminary Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact or representations that the estimates will be realized. It has been the practice of the Underwriter to maintain a secondary market in municipal securities that it sells. The Underwriter, however, is not obligated to engage in secondary market trading or to repurchase any of the Bonds at the request of the owners thereof, and no assurance can be given that a secondary market for the Bonds will be available. in connection with this offering, the Underwriter may over allot or effect transactions that stabilize or maintain the market price of the Bonds at levels above that which might otherwise prevail in the open market. Such stabilization, if commenced, may be discontinued at any time. Neither the delivery of this Preliminary Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. This Preliminary Official Statement is not to be construed as a contract with the purchasers of the Bonds. Staternents contained in this Preliminary Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. This Preliminary Official Statement has been "deemed final" as of its date by the City pursuant to rule 1502 -12 of the securities and exchange commission promulgated under the securities exchange act of 1934, as amended. The. City has also undertaken to provide continuing disclosure on certain matters, including annual financial information and specific material events, as more fully described herein. See "LEGAL M ATTERS — Continuing Requirements." The Underwriter has included the following sentence for inclusion in this Preliminary Official Statement: The Underwriter has reviewed the information in this Preliminary Official Statement in accordance with, and as part of its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The Bonds have not been registered under the securities act of 1933, as amended, in reliance upon a specific exemption contained in such act, nor have they been registered under the securities laws of any state. Brief descriptions of the Bonds and the Bond Ordinance are included in this Preliminary Official Statement. In addition, included as Appendix B is the form of Bond Counsel's opinion. All summaries herein of documents, provisions and agreements arc qualified in their entirety by reference to the actual instruments, copies of each of which are available for inspection at the offices of the City. The descriptions of the Bond Ordinance and the Bonds contained in this Preliminary Official Statement are also qualified by reference to bankruptcy laws affecting the remedies for enforcement of the rights and security provided therein and the effect of the exercise of the police power by any governmental entity having jurisdiction. Page II\'TRODUCTION 1 DESCRIPTION OF THE BONDS 1 Purpose 1 Genera! 2 Sources and Uses of Funds 3 Redemption 3 Transfer and Exchange 4 Bond Registrar and Paying Agent, Payment of Bonds 4 Defeaca nre 4 SECURITY AND SOURCES OF PAYMENT T FOR THE BONDS 5 General Ad Valorem Tax Pledge 4 Limitations on Sources of Payment for the Bonds - 4 TAXING POWERS AND DEBT CAPACITY 5 General Obligation Debt Capacity and Taxing Powers 5 Regular Property Tax Limitations 6 City of Spokane Valley Taxation Authority 7 Assessed Valuation Determination 7 Tax Cmllection Procedure 8 J imits of Indebtedness 9 Debt Payment Record 10 Future Debt Issuance 10 Debt Capacity 10 BOND INSURANCE - Payrneru Pursuant to Insurance Policy 13 INITIATIVES AND REFERENDA 13 CITY OF SPOKANE VALLEY 13 Principal City Officers 14 Pension Fund 15 Insurance 15 Invesunent Policy 15 Budgeting 15 RISKS TO BOND HOLDERS 17 LEGAL MATTERS 22 Tax Exemption 22 Enforceability of Remedies 16 Continuing Requirements 22 Certain Federal Income Tax Consequences 22 Opinion of Counsel 23 Litigation 23 Enforceability 23 OTHER MATTERS 24 Cryan nuing Disclosure Undertaking 24 Ratings 25 Underwriting 25 GUST Numbers 26 Official Statement Certificate 26 DEMOGRAPHIC AND ECONOMIC INFORMATION? APPENDIX A PROPOSED FORM OF LEGAL OPINION APPENDIX B THE BOOK -ENTRY ONLY SYSTEM APPENDIX. C COIVIRACTS WITH 011 -IFR ENTITIES APPENDIX D FINANCIAL REPORTS OF CITY APPENDIX E 2004 CITY GENERAL FUND BUDGET APPENDIX F TABLE OF CONTENTS Statutory Authority City of Spokane Valley Taxation Authority Title 84 RCW Plus: Title 41 (RCWXW 41.16.060) Less: Spokane County Fire Districts No. 1(portion), No. 8 (portion) and No. 9 (portion) Maximum Levy Lcs . G.-..-,... Pu blic . �_ib Vic: - City's Maximum Allowable Levy Rate for General Purposes Amount $3.375 0.225 $3.600 (1.500) $i- 6992.100 Lay Limitations. State law provides, in substance, that unless a higher rate is approved by a majority of the voters at an election, the regular property tax levy by a taxing district must be set so that the amount of the property taxes which will become payable to it in a given year will not exceed the amount of taxes levied by the taxing district in the highest of the three most recent years, by a specified percentage (the "limit factor ") plus an adjustment for new construction. The limit factor is defined as the greater of (r) the lesser of 101% or 100% plus inflation or (ii) any percent up to 101 %, if approved by a majority plus one vote of the governing body of the municipality upon a finding of substantial need. The One PenFnt Aggrt» to Levi Linritatron. Article VII, Section 2 of the Washington Constitution, as amended in 1973, limits aggregate regular property tax levies by the State and all taxing districts, except port districts and public utility districts, to one percent of the true and fair value of property. RCW 84.52.050 provides the same limitation by statute. $5. 90/$1,000 Aggytgo Regular Leuy Lmmtatiar. Within the one percent limitation under RCW 84.52.050 described above, RCW 84.52. 043(2) imposes an aggregate limitation on regular tax levies by all taxing districts, other than the State, of 55.90/$1,000 of assessed valuation, except levies for any port or public utility district; excess-levies authorized in Article V, section 2 of the State Constitution and certain levies for acquiring conservation futures, for emergency medical services or care and to finance affordable housing. Lhri�omrry Reepiirtn nt Artide VII, Section 1 of the Washington Constitution requires that property taxes be levied at a uniform rate upon the same class of property within the territorial limits of a taxing district levying such taxes. It is possible because of different overlapping taxing districts in different areas of the City that the maximum permissible levy might vary within the City. In that event, to comply with the constitutional requirement for uniformity of taxation, the lowest permissible rate for any part of the Citywould be applied to the entire City. eurit• - _`:. _'.� RCW 8132.010 proviil:.°r-41-le. .. •t ..__ ..t _b ea •. r derte-brmbi -Elate �ltntrtutivr�a ��- .�_��•�, kvies-eet�+fred -tin b : • _. , - - - - _ tiggregatE. k .vv into comp`• i-h t ^ eetat 7.04j� "junior - ta . ... =ih n the vad'tliserrdXS, GL. 3, CoRt.S, r po. dissicts, , nd p:tbl:c utility - districts. The City is- er Aurlrrrizat on 9( Excess RCW 84.52.052 authorizes the levying of taxes in excess of the $5.90 /S1,000 and one percent limits imposed by RCW 84.52.043 and 84.52.050, respectively, by any taxing district except school districts, when a larger levy is necessary in order to prevent the impairment of the obligation of contracts. Any such taxin district may also levy taxes in excess of the rates specified by statute when authorized to do so by the voters of such taxing district. Assessed Valuation Determination In Spokane County (the "County"), the County Assessor (the "Assessor") determines the value of all real and personal property throughout the County (including the City) that is subject to ad valorem taxation. The Assessor is an elected official whose duties and methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the Department of Revenue of the State of Washington. . For tax purposes the assessed value of property is 100% of its actual value, subject to exemptions for certain properties owned by other governmental entities and non -profit organizations. All property in the County is subject to revaluation 7 indebtedness of the City, does not exceed 1.5% of assessed valuation. The combination of unlimited tax and limited tax general obligation debt for general purposes, including leases, cannot exceed 2.5% of assessed valuation and for all purposes cannot exceed 7.5% of assessed valuation. The City may, without a vote of the electorate, issue debt as follows: (1) Pursuant to an ordinance specifying the amount and object of the expenditure of the proceeds, the City Council may borrow money for corporate purposes and issue bonds within the constitutional and statutory limitations on indebtedness. The City may execute conditional sales contracts for the purchase of real or personal property. The City may execute leases with or without an option to purchase. ( (3) F(,r t}he -pp; e * si_nt;sirtis mp : g ty-f the- levy-or sum- suffizicnt to perAvarratita - agni sal msrnot d -t =h e teee€ i)1_2% of-thc fund, o i) the total -ern guen . tax;:s levied for c--Enr ; ` the uar;tnty fund w i . . -v 5. Regular Property Tax Limitations The authority of a City to levy taxes without a vote of the people for general City purposes, including the payment of debt service on limited tax general obligation indebtedness such as the Bonds, is subject to the limitations described below. Information relating to regular property tax limitations is based on existing statutes and constitutional provisions. Changes in such laws could alter the impact of other interrelated tax limitations on the City. Max mu,n Rate Limitation. RCW 84.52.043 allows a city to levy taxes of up to $3.375 per $1,000 of taxable property in the city and RCW 41.16.060 allows an additional $0.225 per $1,000, for any municipal purpose, if not required to fund certain pension programs. These taxes may he levied without a vote of the people. This limitation is exclusive of a levy for the maintenance of a local improvement guaranty fund. The City has entered into contracts with Spokane County Library District and Spokane County Fire Districts No. 1 and 8 to provide services to the City. It is assumed that these services will continue, the taxes collected by these districts from property within the boundaries of the City will continue at current levels, and that the City will not be abk to levy and collect those taxes. The City has the authority (RCW 27.12.390) to levy without a vote of the people, regular ad valorem taxes upon real and personal property in an amount not to exceed $3.60 per S1,000 of assessed value, 11.-s-an annual era elisaiet- tax -levreff-Frot-more e an annual fire district tax levy of not more than $1.50 per $1,000 of assessed value. The City has not determined to be annexed into the library' district so the City does collect the annual tax levy of $0.50 per $1,000 of assessed value that could be collected by the library district. The City does not currently levy a property tax, but does have certain road tax revenue collected by the County remitted to the City (equal to a tax rate of $1.84 per $1,000 assessed value). The City anticipates imposing a tax levy of $2_] 04 per thousand of assessed value in 2003 for collection in 2004 to be droved and authorized prior to December 31, 2003, as parr of its 2004 budget. 6 - rtty -feu: rte -souse cm` thcc rt -gtra , :-thee delinquent aascssrrsent � --=Fhe -st story -arse • SECURITY AND SOURCES OF PAYMENT FOR THE BONDS General Ad Valorem Tax Pledge The Bonds are limited tax general obligations of the City. The Bonds are payable from general ad valorem taxes, which the City has covenanted in the Bond Ordinance to include in its budget and to levy annually on all taxable property in the City (within the constitutional and statutory limited applicable to non -voted general obligations) in an amount sufficient, together with other money legally available' and to be used therefore, to pay the principal of and interest on the Bonds as they become due. The full faith, credit and resources of the City•have been irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. The Bonds arc not obligations of- '' i n . • -• • . - _ • - " ' = ' " S okane Coon the Cit of Spoke u =ten 1 the Spokane Public Facilities District, p y Spoken the State of Washin on or an other bolitical subdivision of the State of Washington other than the City. All liabilities incurred by the City with respect to the Bonds shall be satisfied exclusively from the tax revenues credit and other le ally available sources of the City and no owner of the Bonds or other .erson shall have any right of action or recourse to the Spokane .Public Facilities District, Spokane County, the City of Spokane, the State of Washington or any political subdivision of the Sate of Washington, or any of their respective assets, credit, revenues or services on account of any debts, obligations or liabilities relating to the Bonds. Limitation on Sources of Payment for the Bonds Limited tax general obligation bonds, such as the Bonds, are ultimately payable solely from amounts in the City's Current Expense Fund, together with any other money of the City legally available to pay debt services on such bonds. The City is not authorized to levy any additional or excess tax for purposes of repaying its limited tax general obligation bonds. The primary source of funds to repay such bonds are the City's regular property tax and various excise taxes. See "TAXING POWERS AND DEBT CAPACITY - Property Tax Limitations" and "TAXING POWER AND DEBT CAPACITY - Tax Collection Procedure" herein for a discussion of the City's regular property tax collection procedures and limitations thereon. Because regular property tax revenues are used to operate the City government, a pledge to repay limited tax general obligation bonds directly affects the City's operating budget. Consequently, any moncy budgeted to pay debt service on limited tax general obligation bonds ' cn- cannot be Used for other City services. - TAXING POWERS AND DEBT CAPACITY The power of the City to contract debt of any kind is controlled and limited by State law. All debt must be incurred in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur liabilities in excess of budgetary- appropriations. In an emergency, the City Council may put a plan into effect and authorize indebtedness outside the current budget. All expenditures for emergency purposes must be paid by wan -ants from any available money in the fund properly chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become registered interest - bearing warrants. In adopting the budget for any fiscal year, the City Council must appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding budget. General Obligation Debt Capacity and Taxing Powers Voter Apprxd Wits- As prescribed bit State statutes, the unlimited tax general obligation indebtedness permitted for cities, subject to 60% majority vote of registered voters, is limited to 2.5% of assessed valuation for general purposes, 2.5% for utilities and 2.5% for open space and park facilities and economic development purposes. The tax levy limitations described below under the heading "Regular Property Tax Limitations" do not apply to voter - approved debt. The Bonds are not voter approved debt. Non -Votoi A1fc Within the 2.5% of assessed valuation for general purposes, the City may, without a vote of the electors, incur general obligation indebtedness in an amount not to exceed 1.5% of assessed valuation. Additionally, within the 2.5% of assessed valuation for general purposes, the City may also, without a vote of the electors, enter into leases, if the total principal component of the lease payments together with the other non -voted general obligation 5 Efl z ofRdf rapt n. When so called for redemption, the Bonds shall cease to accrue interest on the specified redemption date, provided money for redemption is on deposit at the place of payment at that time, and such Bonds shall not be deemed to be outstanding as of such redemption date. Oprn Marker Purchase. The City has reserved the right to purchase the Bonds on the open market at any time, at any price. To the extent the City purchases Term Bonds on the open market, the City may reduce, at its discretion, the amount of any mandatory sinking fund deposit or deposits by an aggregate principal amount equal to the principal amount of the Term Bonds so purchased. Any Bonds so purchased or redeemed shall be canceled. Transfer and Exchange In the event that the Bonds are no longer held in book -entry only form, the Bonds may be transferred or exchanged by Registered Owners upon completion of the assignment form on the Bond(s) in form and substance satisfactory to the Bond Registrar and delivery of the Bond(s) to be exchanged or transferred to the Bond Registrar for cancellation and re- issuance. Upon such surrender, the Bond Registrar will issue to the new registered owner a new Bond or Bonds of the same maturity and for the same aggregate principal amount. The Bond Registrar is not required to register the transfer or to exchange Bonds during the 15 days preceding any interest payment or principal payment date any such Bond is to be redeemed. Bond Registrar and Paying Agent, Payment of Bonds The City has adopted the system of registration for the Bonds approved, from time to time, by the State Finance Committee of the State of Washington (the "Committee "). Pursuant to chapter 43.80 RCW, the Committee designates one or more fiscal agencies for bonds issued within the State of Washington. The State's fiscal agent, currently The Bank of New York, New York, New York, (the "Bond Registrar "), will authenticate the Bonds and act as the paying agent and registrar for the purpose of paying the principal and interest evidenced and represented by the Bonds, recording the purchase and registration, exchange or transfer, and redemption or payment of Bonds and performing the other respective obligations of the paying agent and registrar. In order to meet payment requirement for interest on and principal of the Bonds as the same becomes due and payable, the City will remit money from the City's Bond Fund to the Bond Registrar. So long as Cede & Co. is the Registered Owner of the Bonds, the principal of and interest on the Bonds are payable by wire transfer to Cede & Co., as nominee for DTC which, in turn, is to remit such amounts CO the Direct Participants for subsequent disbursement to the Beneficial Owners. See "THE BOOK -ENTRY ONLY SYSTEM" in Appendix C. In the event that Cede & Co. is no longer the Registered Owner of the Bonds, the Bond Registrar will mail interest payments on the date interest is due to the Registered Owners of the Bonds as shown on the registration books ("Bond Register") maintained by the Bond Registrar as of the 15th day of the month preceding the interest payment date; provided, however, that if so requested in writing by the Registered Owner of at least S 1,000,000 principal amount of Bonds, interest will be paid by wire transfer on the date due to an account with a bank located in the United States designated by the Registered Owner. Principal of the Bonds will be paid to Registered Owners upon presentation and surrender of the Bonds at maturity or upon earlier redemption to any offices of the Bond Registrar in New York, New York, or under the terms of the current fiscal agency agreement, for Bonds owned by Registered Owners in the State of Washington, upon presentation at any office of Wells Fargo Bank, N.A. in the State of Washington. Defeas an ce The City has reserved the right to defease the Bonds or any portion of them by providing for their payment. Payment of all or any portion of the Bonds may be provided for by irrevocably depositing cash and/or "government obligations" (as such term is defined in chapter 39.53 RCW) in trust with a financial institution for the benefit of the owners of the Bonds. Such cash and government obligations shall be applied solely for the purpose of paying the principal of the Bonds at maturity and interest thereon as the same shall become due. Such cash and the maturing principal of and interest on such government obligations shall be sufficient to pay when due such principal and interest. 4 responsible for the failure of DTC or any broker to pass on communications or to credit payments accurately or on time to individual brokerage accounts. Sce "APPENDIX C - THE BOOK - ENTRY ONLY SYSTEM" Sources and Uscs of Funds The table below sets forth the sources and uses of funds in connection with the issuance of the Bonds. Sources of Funds Principal Amount of the Bonds Original Issue Premium /Discount Total Sources: Uses of Funds Project Fund Deposit Estimated Costs of Issuance') Total Uses: (1) Includes, among other expenses, legal, $end Registrar, raring agency fees, printing costs and underwriter's discount. *Preliminary, subject to change. Redemption eirrol Redention The Bonds maturing on and after December 1, 20 , are subject to redemption at the option of the City on and after December 1, 20, in whole or in part at any time (within one or more maturities to be selected by the City) at par plus accrued interest to the date fixed for redemption. For as long as the Bonds are held in book - entry only form, the selection of Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. Mandatory Redtmotian Term Bonds due in 20 and not redeemed pursuant to the foregoing optional redemption provision are subject to mandatory redemption at par on December 1 in the years and amounts as follows: 20 Term Bond Due December 1 Mandatory Redemption Notice of Retiontifion. For as long as the Bonds are in book -entry only form, notice of redemption shall be given in accordance with the operational arrangements then in effect at DTC. The City will not notify individual holders of the Bonds of any upcoming redemption of Bonds. The City will notify DTC of a proposed redemption not less than 30 nor more than 60 days prior to the date fixed for redemption. if the Bonds are no longer held in book -entry only form, the City will provide notice of redemption prior to maturity at least 30 days (but not more than 60 days) prior to the . scheduled redemption. This notice will be sent to the registered owners of the Bonds (the "Registered Owners ") to he redeemed at the address on the Bond Registrar's records or at such other address as is furnished in writing by such Registered Owners. Partial Rdo i ption. If less than all of a maturity is called under the mandatory redemption provisions for Term Bonds, the Bonds to be redeemed will be chose randomly in integral multiples of S5,000 by the Registrar or, so long as the Bonds are registered in the name of DTC or its nominee, by DTC. If less than all of the principal amount of any Bond is to be redeemed, upon surrender of such Bond at the principal office of the Registrar, there will be issued to the Registered Owner, without charge, for the then unredeemed balance of the principal amount, a new Bond or Bonds, at the option of the Registered Owner, of like maturity and interest rate in any denomination authorized by the Ordinance. 3 $9,3C3,CO39,430,000 8 .0 he City hss ntgetil i i.I. .A._ Pu blk c_.. iliti District= bf-Spele ne -(the " Dist:cc_') -afl e "County) -r. g° reir"b-sregiei . 1 .. - • : a. . In, prc,jcct3, including, ; :. - - • t ; the -pre ns`'rtreti"_. -.f I. __ Ccn W hich the City - proposes to untieri i,:. _ pl: _ fer- the -beats t- of-t c i ty -tat �1b.t hhcnt Nvhieh- pre -- that -tic District :vili l v nu and- ern -w' zvenaes 4 1_ � ay rr t th _...I ,- -.he- amettnts lrt`°�t'ly"� <«il<<blz c:rt}y to the-�D' - - � � .. - . thet -apps t i dcbt -ser ice pnvrnerits-on thst-rer<ien f t h e B o._ that-cqutl $7,0a 1.,00D for such time assuelr bonds rem Lire - outs - he- intfsi, evernmenea4- pa'rr +e n et-pkdge ceders- of-the Bee-cis-and-41c City has no obfi st a uitergovemmcntal f-_ ° --.h ptu osc I hwen=t read the [lt'C = t =� "'�`rcmrGsir-te-GtEt - --- -i ty .,. thirik iii'c�rIoc l 'tbt Citw t , '..:se '.boat Avenues for zhc Gen payable oily -.'a: e =}ether or not the District 11 -' malt - The City is-arid— be-ebligat (b) Road and Street Improvements. The City proposes to use a portion of the proceeds of the Bonds to pay a portion of the costs of the acquisition, construction and installation of various road and street improvements in the City, including the following: Road Construction Projects: Improvements to 16th Avenue. - from, Dishman -Mica Rd to Pines Rd. Improvements to Park Road - from, 8k" Avenue to Appleway Avenue Improvements to Evergreen Road _from 16t1 Avenue to 2'.cl Avenue Other Road Construction and Improvement Projects as defined b the Cit capital im„rovement Ian. i3jtnctiou with this Septic T_..1- L1:....:_._...:_.-. ,, ,i- _ _ _ledcd -ii -Phas£ I4 The total cost of the road projects is estimated to be approximately $20,400,000. 14-se-ef-spproxinnately$2.4 30,000 of p roceeds of the Bonds are CO pay for the Citv's share of the cost of this portion of the Project, which provides t> t-ematchinv funds for additional state and federal funds to corn fete the road improvements. 1 (c) All other costs and expenses associated with the Projects, including right -of -way acquisition, any other real estate acquisition, architectural and engineering fees and costs, and all costs and expenses associated with the issuance of the Bonds. General The Bonds will bear interest from their dated date. Investors may purchase Bonds with a minimum purchase of $5,000 or integral multiples of $5,000 within a maturity. The maturity schedule, including interest rates, is shown on the cover of this Official Statement. Interest on the Bonds will be payable semiannually on each June 1 and December 1, to the maturity or earlier redemption of the Bonds, starting on June 1, 2004. The City has chosen to use the book -entry only system for the Bonds. Purchasers will not receive physical Bonds. The Bonds will be issued in registered form. A description of the book -entry only system is attached -to this Official Statement as Appendix C. Individual purchasers should receive confirmations of their purchase from their brokers and will receive payments through their brokers as well as all other conununications about the Bond issue. The City will not - krdow the identity of the purchasers of the Bonds. Therefore, the City will not be communicating directly with such purchasers. All communications will be routed through The Depository Trust Company, New York, New York ( "DTC"). DTC will act as securities depository for the Bonds. The City will transmit all payments and communications CO DTC. It will be DTC's responsibility to communicate information and to transmit payments through bmkcragc companies to individual purchasers of the Bonds. The purchaser of a Bond is subject to all of DTC's rules and regulations The City is not responsible for the performance of DTC and, while the City has no reason to believe that DTC will not perform its duties and responsibilities, the City is notifying purchasers of the Bonds that it will not be 2 .elopmettti S9,300,0009 430,000" CITY OF SPOKANE VALLEY, WASHINGTON LIMITED TAX GENERAL OBLIGATION BONDS, 2003 in vc of-dhis-G)Fneia!- Stnu ;. INTRODUCTION This Offitia! Statement is furnished by the City of Spokane Valley (the 'City "), a municipal corporation of the State of Washington (the "State"), to provide information regarding the City and $9309;0099,430,000* of the City's Limited Tax General Obligation Bonds, 2003 (the "Bonds "). The legal obligations of the City relating to the Bonds are set forth in Ordinance No. of the City to be consideredp;ssed by the City Council on- Oetebet- -_8 October 28 2003 the "Bond Ordinance "), -the O ff Pur has hrr•ju Brother; (the-"Underwriter. The City Council authorized the Bonds to be issued in the Bond Ordinance. In addition, the City's legal obligations under the Bonds are subject to the limitations of the State constitution and State law. Specifically, the Bonds are issued under the provisions of chapters 35.22 and 39.46 of the Revised Code of Washington ("RCW"). This Official Statement eeeenimr provides only a summary of the- eomplete- provisions of the Bond Ordinance and State law. This Official Statement does not repeat all the terms and conditions of the Bond Ordinance and applicable State law. The City was incorporated as of March 31, 2003, and therefore, the financial information regarding the City in this Official Statement has been taken or derived from a budget developed for implementation as of that date, modified by a budget amendment approved by the City Council on September 9, 2003, (see "Budgeting" herein)„ financial reports; and financial estimates for the future. The- City - will- provntfe- peespee p DESCRIPTION OF THE BONDS Purpose In connection with the issuance of the Bonds, the City intends to undertake the construction of a regional community center in the City and construct and install various road improvements (collectively the "Projects "). (I) Regional Center Project: A portion of the proceeds of the Bonds will be used to pay a portion of the costs to construct and equip a new regional and community center, CenterPlace at Mirabeau Point, (the "Center "), and to pay ees ef- issuing -the- fiords. The CenterPlace Project will be located in Mirabeau Point, approximately 54.5 acres of City property adjacent to the Spokane River in the Spokane Valley. The approximately 54,71853 square foot facility is scheduled to open in January, 2005. The aggregate cost of the Center is anticipated by the City to cost approximately $10,000,000, of which $7,000,000 will be paid for with proceeds of the Bonds. The Center will house a large regional meeting conference room for a variety of community and cultural activities. There also will be space for meeting and presentation rooms and educational activities. The Project will also house a Senior Citizen Center which will be largely paid for with funds other than proceeds of the Bonds. \V ht ITT di _ �L ,.. .5.. uget -at7c ee'cse -fer the p7� ineltrd b'27'TR I i ett Rv� "- �r�d- :niz =iv v „ �O;,ic Q: bd �citclUl7 ” S ' > there'- a- Quarutte..dsnt,u Or . a_ 0 ; �c�ill be t it will - he built -within b el t. The Citv and community have been working with an architectural and design team with experience in designing:and constructing facilities similar to the Center. The estimated cost for the Center. including contingency funds of five percent (5 %) of the construction budget has been estimated at. $9,875,000, including furnishings. The Cit pects CO bid the construction and furnishings of the Center in phases in order to better insure that costs associated with Construction of the Cent& is cons:nicwdare controlled The intention of the City is to include "deductive alternates" totaling an additional five percent (5 %). In addition to the proceeds of the Bonds, the City bas grant fund and other private fund commitments totaling 530,0+00.00, which the City feels will be sufficient to construct the Center and have it ready for occupancy on or about lanuary 1. 2005. 1 annually. The revaluation occurs in cycles, and the intention is that all of the property in the County be revalued every four (4) years. The property is listed by the Assessor on a roll at its current assessed value, and the roll is filed in the Assessor's Office. The Assessor's determinations are subject to revisions by the County I3aard of Equalization and, for certain property, subject to further revisions by the State Board of Equalization. After all administrative procedures are completed, the City receives the Assessor's final certificate of assessed value of property within the City. Tax Collection Procedure Property taxes in the County are levied in specific amounts and the rates for all taxes levied for all taxing districts in the County (including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of the property within the various taxing districts. The Assessor extends the taxes CO be levied within each taxing City upon a tax roll which contains the total amount of taxes to be so levied and collected. The tax roll is delivered to the County Treasurer by November 15 of each year, and an abstract of such roll, showing the total amount of taxes collectable in each of the taxing districts for the year, is delivered to the County Auditor at the same time. On or before the first Monday in January, the County Auditor issues to the County Treasurer a directive authorizing the collection of taxes listed on the tax rolls of the County, as certified by the County Assessor. The County Treasurer creates a tax account for each taxpayer by property parcel number and is responsible for the collection of taxes due for each account. All such taxes are due and payable on the 30th of April of each year, but if the amount due from a taxpayer exceeds $30.00, one- half may be paid then and the balance paid no later than October 31 of each year. The method of giving notice of payment of taxes due, the accounting by the County Treasurer for the money collected, the distribution of taxes. among the various taxing districts, notices of delinquency, and the collection procedures are all covered by state statutes. Subject to federal tax liens on personal property filed prior to the levy of taxes by the City, the lien on property taxes is prior to all other liens or encumbrances of any kind on real or personal property subject to taxation. By law, the County Treasurer may not commence foreclosure of a tax lien on real property until three years have passed since delinquency. By statute, the lien for property taxes is prior to all other liens or encumbrances of any kind on real and personal property subject to taxation. In Algona v. Sharp, 30 Wn. App. 837 (1982) the Washington Court of Appeals, Division One, held that all property that constitutes a homestead under Chapter 6.13 RCW (up to a total property value of $30,000) is protected from forced sale to satisfy special assessment liens. The Court expressly did not rule as to the effect of a declaration of homestead against a lien for general taxes. The City has yet to levy property taxes, but will do so in November, 2003 for collection in 2004. Sales Tax Receipts and Collections The City also receives eighty-five one- hundredths of one percent (.85%) of taxes on retail sales which occur within the boundaries of the City. These tax proceeds are collected by the Washington State Department of Revenue and remitted to the City sixty (60) days after the end of the month in which they are collected. in 2003, the City will only receive sales tax revenue duringfer seven months of the year. • At the time of incorporation. there were some errors made in the. coding of some retail locations located in the City for purposes of the distribution of sales tax revenue to the Ciw. The City believes these errors have now been largeh corrected and that distribution deficiencies to date will be corrected in this fiscal year and the future collections and distributions will be accurate. The City has im.lemented a lan to insure continued attention to the .ro•er codino of retail locations located within the boundaries of the Cite. Sales tax revenue constitutes an estimated 39% of the revenue to the General Fund in the 2004 budget of the City. Taxable retail sale information for the City is not readily available, but the following table shows the trend for retail sales in the County: . Taxable Retail Sales in Spokane County 8 Retail sales and retail sales collections for the City and unincorporated Spokane County in- the- Gity-for the months available in 2003 are set forth in Appendix as well as retail sales tax receipts. Littmits -e€- Indebtedness -In t ous'n ds c f cdoUars -' Year Retail Sales 2002 $5.572,173 2001 5.620 2000 5,577,511 1999 5,234,923 1998 4,779,096 Outstanding Debt The Citv issued a Tax Anticipation Note (the "Note") dated March 1, 2003 which provides for a line of credit from Farmers & Merchants Bank (the "Bank ") to be available to meet the cash flow needs of the City during its' initial operation. The City has drawn $500,000 against this line of credit and does not anticipate making any further draws and has so notified the Bank The only other outstanding general obligation debt of the City is the Bonds. Intergovernmental Payments from the Spokane Public Facilities District The Bonds are limited tax general obligations of the City. However, the City does expect to receive intergovernmental payments from the Spokane Public Facilities District (the "District") which will be available for expenses associated with the Center, including debt service on the Bonds. The District is authorized, subject to the approval of the qualified electors of the District, to impose a sales and use tax at a rate of not to exceed 2/10 of 1% of the selling price in the case of a sales tax, or the value of the article used in the case of a use tax and an excise tax on any charge in a facility of more than fo 40 lod . units. At an election held in M 2002. the ualified electors authorized a 1- of the sales and use tax and the lodging tax. Additionally. the Board of the District has the authority to impose a sales and use tax, not to exceed .033 percent. The Board has this additional tax. The District has begun collecting these tax proceeds. The City has negotiated with the Public Facilities District of Spokane (the "District") and Spokane County (the 'County ") regarding a regional plan of finance for three regional center projects, including approximately $7,000,000 for the proposed construction of the Center, which the City proposes -to undertake to accomplish for the benefit of the re 'anal communit in cooperation with the District. The Coun the City and the District have executed an Inrerlocal Agreement which provides that the District will utilize certain tax revenues presently available only to the District to make intergovernmental payments to the City at the times and in the amounts that approximate the City's obligation to make debt service p on that portion of the Bonds that equal $7,000,00 for such time as such bonds remain 1 Projection 9 outstanding. The intergovernmental payments are not pledged to the holders of the Bonds and the City has no obli < tion to use the inter ovcrnmcntal va .ments for such ter ose. The intcrcrovernmcntal a'ments are s ecial the District to make the obli anion of the District payable only from certain tax revenues• cone u ent the abili of intergovernmental payments is dependent. upon the adequacy of such tax revenues which cannot be guaranteed. The City is and will be obligated to repay all of the Bonds whether or not the District actually makes any or all anticipated intergovernmental payments called for by the Interlocal Agreement. Debt Payment Record There has been no default in the payment of principal of or interest on any bonds, notes, warrants or certificates of the City. The City did issue notes to commence operations, issuing a $50,000 Note to the City of Liberty Lake, Washington (which has been repaid in full) ands $1,000,000 n ....e 'r: ' wit ieipat cmthe Note, dated March 1, 2003, which is due December 31, 2003. The City anticipates paying this note in hell on or before its maturity. Future Debt Issuance As a newly formed entity, the City is studying a number of capital needs, but no other issuances of debt are scheduled at this time. Debt Capacity The City presently has no outstanding general obligation open space /park debt or general obligation utility debt and therefore has 100% of its debt capacity remaining for these purposes. The table that follows provides the calculation of the City's general purpose debt capacity applicable to the Bonds. City's Debt Capacity (as of August 31, 2003) Assessed Valuation,(Q (230(!) $4,056,439,390 Non .1):hr (c.,rxraz}r Legal Limit Without Vote (1.5% of Assessed Value) 60,846,591 Outstanding Tax Anticipation Notes $ 1,000,030500.00 The Bonds - 998;9969.430,000 r Other Outstanding Non -Voted Debt -0- Outstanding Non -Voted Debt (Including the Bonds) Remaining Non-Voted Debt Capacity Voral and Nan - Void abr. L mirs' Legal Limit With Vote (25% of Assessed Value) . $101,410,985 Outstanding Voted Bond Debt -0- Outstanding Non -Voted Debt (including the Bonds) -10,300,O0099 930,00 0 Outstanding Debt 10,3C,O,3G09,930,00 (-1,- 396;9699,930.0 0 cg Remaining Debt Capacity $91,110,985 (1) The assessed valuation on real property within the boundaries of the City for 2004 tax collections has been estimated to be $4,150,000 by the County. This figures does not include any value for personal property, utilities and railroads which may be included within the boundaries of the City. 10 $10,300,0009,930,0 (498;96x9,930,0 0!0 $54;54(7;59450.916, 591 (42) Line of credit provided by Farmer's and Merchant Bank (the 'Bank "): outstanding balance as of August. 31, 2003 was $500,000. While the line of credit was authorized in the amount of $1,000,000. the City has notified the Bank that it does not intend to draw any additional funds and to can the obligation at $500,000. Source: City of Se Valley: Taxpayer Spokane Valley Mall Kaiser Aluminum & Chem Corp.! Park SPE, LLC Hanson Industries, Inc. Cedar Chateau Estates Federated Department Stores Whimsical Pig Ltd Partnership Spokane Plaza Community Center Columbia Lighting Mfg. Company National Tax Search, LLC . Total A) Direct Debt Less: Self Supporting Debt(') Net Direct Debt Source: City of Spokane Valley Dina- marl -B. Overlapping De ebt City of Spokane Valley's Largest Taxpayers Type of Business Retail Manufacturing Real Estate Real Estate Development Real Estate Retail Apartment Complex Real Estate Manufacturing Services Direct and Estimated Overlapping Debt (as of August 31, 2003) Bonded General Obligation Debt (including the Bonds) Lease Obligations and Other Outstanding Voted Debt (Tax Anticipation Notes) Revenue Debt Gross Direct Debt 11 % of Total 2003 Assessed Assessed Value Value $65,906,080.00 1.6247% 50, 645,760.00 1.2485% 40,962,730.00 1.0098% 15,009,390.00 .3700% 12,564,600.00 .0309% 11,306,600.00 .0278% 10,310,000.00 .0254% 10,072,300.00 .0248% 9,952,383.00 .0245% 9,800,000.00 .0242% S236,529,843.00 T06% $9•,398;9989.430,000* 500,000W -0- $90,09,930,00 0 -0- $009,930,00 0 fp Line of credit provided by Fanner's and Merchant Bank; outstandin; balance as of August 31. 2003 was I Kaiser Aluminum & Chemical Corporation is currently in a Chapter 11 Bankruptcy Proceeding and it is unknown what the future ability of Kaiser will be to pay property taxes and other obligations. Maturity Date December 1 Principal - Amount interest Rate Total Debt Set Annnal Payment lax 1, 2004 • D:.o.-mte: 1, 2005 Oeeember -1 -2006 Deezi nhcr 1, 2007 De:emhcr 1, 2008 D 2009 e ruler -1, December-17201.0 1 -4.201.1 l7nbe1 -4; -2012 December 1, 2013 Peeetaber472014 1:4eecmbcr1r2015 1-3eeet ber17.2016 2017 December 1, Dcccmbcr 1, 2018 l;teeetnber --F; 2019 D..cmhcr 1, 2020 • 2021 Pctesrlbcr 1, 2072 2023 . 7074 2025 • Spokane County Central Valley School District East Valley School District West Valley School District Spokane School District Spokane County Fire District No. 1 Spokane County Fire District No. 8 Spokane County Fire Distrir No. 9 Spokane County Library. District Total Estimated Overlapping Debt: Total Direct & Estimated Overlapping Debt Source: Sp k .ne Cazo7ty Assessor and Treasurer Offices c e..4.kbe eat. •$- 547800,G30 102,117,661 46;248;808 1 303 179,110,a10 2,aco,030 Bonded Debt Ratios (Including the Bonds) Assessed Valuation (2002 for 2003 Taxes) 2003 City Population Direct Debt as a Percentage of Assessed Valuation Direct & Estimated Overlapping Debt as a Percentage of Assessed Valuation Per Capita Assessed Valuation Per Capita Direct Debt Per Capita Direct & Estimated Overlapping Debt 12 Overlapping Debt Maturity Schedule of the 2003 Bonds S4,371,093 9,926,738 7,279,547 5,286,845 7,158,751 -0- 343,000 92 708,331 $44.842 $4,056,439,390 82,025 0.2448% 1.10.01% S49,4543.70 $ 11994-44 $ 54784 $35,074,397 2026 2027 2028 7029 2031 2032 2030 2033 Tema Bonds Payment Pursuant to Insurance Policy [Add insurance language when available) BOND INSURANCE OPERATING RESERVE ACCOUNT The Bond Ordinance establishes an Opctatina Reserve Account (the "Account") for costs associated with the. Center and provides further that the City will fund this account with non -bond Proceeds in the amount of $100,000 on January 1, 2004. The City has covenanted to grow the Account to $3007,000 by January 1, 2009. Furthermore, the City has covenanted to prepare and follow a plan for reinstatement of any funds drawn from the Account at the time of the draw upon the fund, INITIATIVES AND REFERENDA Under the State Constitution, the voters of the State have the ability to initiate legislation and to modify existing statutes through the powers of initiative and referendum. The State Constitution may not be amended by initiative. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiatives) and four percent (referenda) of the number of voids registered and voting for the office of Governor at the preceding regular gubernatorial election. Any law approved in this manner by a majority of the voters may not be amended or repealed by the State Legislature within a period of two years following enactment, except by a vote of two- thirds of all the members elected to each house of the State Legislature. After two years, the law is subject to amendment or repeal by the State Legislature in the same manner as other laws. . •Future itiatave Legislation T+ ax and fee initiative measures i -, d may be filed each year, but it cannot be predicted whether any such initiatives might gain sufficient signatures to qualify for submission to the Legislature and/or the voters or, if submitted, whether they ultimately would be approved. CITY OF SPOKANE VALLEY On May 21, 2002, voters within the City approved incorporation of the City of Spokane Valley, which is the second largest city in the County and the eighth largest city in the State, with approximately 82,005 residents. The City incorporated as of March 31, 2003. The assessed valuation of real property within the boundaries of the City for taxation *purposes is estimated for 2004 tax collection to be approximately $4.1505C. billion4,300.000, which does not yet include any valuation for personal property, utility and railroad property in the boundaries of the City. 13 The City has 43 full time employees. It expects to contract with other governmental entities (Spokane County, Spokane County Library District and Spokane County Fire Districts No. 1, 8 and 9) for municipal services. The City has approved contracts with the County for numerous governmental services, including law enforcement, road and street maintenance. The initial contracts for these services are valid through December 31, 2004. (A schedule of these contracts is attached as Appendix D to this Preliminary Official Statement.) With the exception of the contract for law enforcement services, which has a one year requirement for cancellation, the other contracts with the County have a 90- da notice requirement for cancellation. The first City Council was elected in the November 2002 general election. The City has adopted the Council - Manager form of government with a mayor and six member council (the "City Council ") elected at large by popular vote. Each Councilor will initially serve a —three year term. Commencing in ]anuarv, 2006, councilors shall begin serving staeoered terms. The four councilors who receive the highest number of votes in the 2005 municipal election shall serve four year terms and the other three councilors shall serve two year terms. The Mayor is selected freni-anteagby a majority vote of the members of the Council every two yearn.. The Mayor and Council appoint the City Manager to provide administrative direction for the City. The City provides services pursuant to its charter. Principal City Officers Current members of the City Council are: Member Position Term Expires Michael DeVleming Mayor December 31, 2005 Diana Wilhite Deputy Mayor December 31, 2005 Richard Denenny Council Member December 31, 2005 Michael Flanigan Council Member December 31, 2005 Guy Schimmels Council Member December 31, 2005 Steve Taylor Council Member December 31, 2005 Richard Munson Council Member December 31, 2005 Michael DeVleming, Mayor. Mike DeVleming was elected to the City Council in November of 2002, and was selected by his Council colleagues for a two_ year term as the first Mayor of the City. (F-itc :tyi„ is scictiacd by a majority -vete ef -the•C —our. o °s —Mr. DeVieming is the Customer Service Director for a local utility. After the election of the initial City Council in November, 2002, the City had in place an interim management ream through May, 2003. This interim management team developed and implemented the first City budget. The City Council conducted a national search and hired a City Manager who in turn has been seleeting and putting ir. placehuing senior City staff. Key City staff are: David Mercier, City Manager. • David Mercier was appointed the first City Manager of the City on April 15, 2003. Prior to this appointment, Mr. Mercier worked with his own consulting firm providing services to governmental entities in Southwest Washington. Mr. Mercier has worked in government positions, including over four years as City Manager in Battle Ground, Washington. Mr. Mercier has a BA and MA from the University of Maine and completed the University of Washington's Daniel J. Evans School of Public Affairs Cascade Public Executive Program in 2001. Nina Regor, Deputy City Manager. Nina Regor was appointed as Deputy City Manager in June of 2003. Ms. Regor most recently served in a number of capacities for the City of Gresham, Oregon, most recently Assistant City Manager for ten years. Ms. Regor received her BA from Stetson University and MS in Public Management from Carnegie Mellon University. Ken Thompson, Finance & Administrative Services Director. Ken Thompson joined the City in June of 2003 after four years as the Assistant City Manager /Administrative Services Manager for the City of Albany, Oregon. Prior to that Mr. Thompson worked as the Finance Director and City Administrator for the City of Coeur d'Alene, Idaho. Mr. Thompson received a Bachelor of Science in Business Administration, with an accounting emphasis, from Southern 14 Oregon University. The Finance & Administrative Services Department is responsible for accounting, accounts payable, payroll, accounts receivable, internal audit, treasury, budget, and management information systems. Christine Bainbridge, Citv Clerk Christine Bainbridge was appointed by the City as City Clerk in June, 2003. Prior to the appointment she worked for the City of Moscow, Idaho as Deputy City Clerk and City Clerk Ms. Bainbridge has a B.S. from the University of Idaho. Stanley Schwartz, City Attorney Stanley Schwartz was appointed City Attorney in November of 2002, prior to incorporation. Mr. Schwartz previously served as an Assistant City Attorney for the City of Spokane, is a principal in the Spokane firm of Witherspoon, Kelley, Davenport & Toole, P.S., and also serves as City Attorney for a number of other cities and towns in Eastem Washington. Budgets and Accounts The City prepares budgets in accordance with chapter 35.33 RCW.* The city is operating under its first budget, implemented on April 1, 2003. See "Budgeting" below. Long -term, project -oriented budgets are adopted as required and amended as additional appropriations are needed. • _ -ergerds-are-neet budgeted. Within the constraint of the total budget, a change in appropriations within a fund may be authorized by the City Manager. All budgets are accounted for on a line -item basis with control at the object summttryfund total level. Estimated purchase order amounts are encumbered prior to the release of the order to the vendor. Open encumbrances lapse at year -end and must be reappropriated or absorbed in the next year's operating budget. Cities and counties in the State must comply with the Budgeting, Accounting, and Reporting System ( "BARS ") prescribed by the Office of the State Auditor as authorized under RCW 43.09.230. State laws also provide for annual independent audits by the Office of the State Auditor and require timely submission of annual financial reports to the State for review. Thee financial system of the City incorporates a system of financial administrative controls to help ensure the safeguarding of assets and the reliability- of financial reports and consequently are designed to provide reasonable assurance that transactions are executed in accordance with management authorization, recorded in conformity with Generally Accepted Accounting Principals ("GAAP") and that there exists accountability of and control over assets and obligations, and that sufficient reporting and review. exists to provide adequate information for analysis and comparability of data. The City's financial statements are subject to annual audit by the State Auditor. As a newly formed entity, the City has yet to be audited by the State Auditor. Certain reports of the finances of the City are attached as Appendix E. Pension Fund Insurance The City and its employees contribute to mandatory municipal employee retirement systems administered by the State. The Public Employees Retirement System ( "PERS ") is mandatory for all non - uniformed regular employees and effective July 1, 2003 required a 1.40% of payroll contribution from the City for PERS Plan 1, If and III. Pension contributions for 2004 are expected to total S30,366. The Law Enforcement Officers and Firefig ( "LEOFF") Retirement Plan likewise is mandatory for all uniformed fire and police employees who are active or hired on or after March 1, 1970. The City does not employ any uniformed police or fire employees, so has no liability for contribution to LEOFF. The City participates in the state - operated worker's compensation program and is self - insured for unemployment compensation coverage. The City is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self - insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act) WCIA was formed on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly • purchasing insurance, jointly self- insuring, and/or jointly contracting for risk management services. WCIA has a total of 105 members: 15 The City joined \y.VCIA in 2002. New members initially contract for a three -year term, and thereafter automatically renew on an annual basis. A one -year withdrawal notice is required before membership can be terminated Termination does not relieve a former member from its unresolved loss history incurred during membership. A brief description of the insurance coverage the City has is set forth below: Liability. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, polite professional, public officials' en-ors or omissions, stop gap, and employee benefits liability. Limits are $1 million per occurrence in the primary layer, S2 million per occurrence, subject to a $12 million annual aggregate, in the excess layer, and $11 million per occurrence in the second excess layer with no annual aggregate except $10 million per month for public officials errors and omissions. The second excess layer is insured by the purchase of reinsurance and insurance. Total limits are $14 million per occurrence. Property and Other Insurance Coverages. Insurance coverage for property, automobile physical damage, fidelity and inland marine beiler-a inery are purchased n a group basis. Various deductibles apply by type of coverage. Property, insurance and auto physical damage are self- funded from the members' deductible to $250,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of reinsurance. The City also has Crime /Employee insurance coverage, from Fidelity National Union Fire Insurance Company for Employee Dishonesty, Faithful Performance of Duty and Computer Fraud in the amount of $2,500,000, subject to a deductible of $10,000 and a co- insurance provision of 5%. Investment Policy The City has a formal investment policy and the Finance and Administrative Services Director is the investment officer of the City. The City's primary investment objectives are: 1) to ensure that the City's investments will be in compliance with all statutes governing the investment of public funds followed by, 2) to provide safety of principal, followed by, 3) liquidity to meet operating requirements, and 4) yield through a generally passive investment approach. RCW 36.29.020, 35.39.030, 36.33.070, 39.58.130, and 39.60.010 provide authorization for the purchase of various types of security instruments Deposits. The Federal Deposit Insurance Corporation ( "FDIC") insures the City's deposit up to $100,000. All deposits not covered by FDIC are covered under the State Public Deposit Protection Commission Act of 1969. The total City deposits held in a qualified public depository may not exceed the depository's net worth. - Investments. The City's investments are categorized to give an indication of the level of risk assumed by the entity at year -end. Category 1 includes investments that are insured, registered, or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the financial institutions trust department or counter - party's agent in the City's name Category 3 includes uninsured and unregistered investments for which the securities are held by the broker or dealer or by its safekeeping department or agent but not in the City's name. All of the City's investments are invested with the Washington State Local Government Investment Pool, which is not categorized. Budgeting City Investments (as of August 31, 2003) Carrying Amount Market Value 1JS Government Agencies Q 0 State & County Local Government Investment Pools $2,844,413.000 $2,844,413.006 Passbook/Moncy Market Accounts Q 0 Corporate Bonds 0 0 Total Investments S2,844,413.00 $2,844,413.00 16 State law requires cities to operate using a calendar year for budgeting and accounting purposes, thus the first budget is for the nine months ending December 31, 2003. The estimates used in this first budget originated with the Spokarx Valley Incorporation Stt dy by the Washington State Boundary Review Board, dated July, 2001. As of September 30, 2003. Eestimated revenues in the General Fund, especially Sales Tax and Fines /Forfeitures, are ppc r -te-bc approximately $?3 million less on an annualized basis than the Boundary Review Board's projections. This shortfall is appears to related to a combination of the following factors aA lag time of approximately two months from the time that taxes are collected to the time they are remitted to the City; a failure to account for the variation in seasonal fluctuation in collections; and-the lack of any holiday sales tax figures in the current collections data as the City has not received sales tax revenue for the holiday sales season Pet; and im.i-oner codinv of the location of man ' entities collecting sales tax revenue. This later problem has been identified and corrected and it is expected that by the end of 2003 sales tax collections will be no ier1y allocated and credited. The City has borrowed funds from Spokane County, the City of Liberty Lake, Farmer's and Merchant's Bank and the City's Street Fund to pay for operating costs during this interim period. The amounts due to Spokane County and the City of Liberty Lake have been repaid. The City expects to repay the outstanding balance on its Note to Farmers & Merchants Bank on or before the manirity date of December 31, 2003. The City expects to owe Farmer's and .. '.:... - ,. the City's Street Fund ($500,000 and $3.4 million at December 31, 2003. The City has developed and will implement' a plan to repay this interfund loan, plus interest, with equally amortized payments over four years commencing in 2004. The City has begun preparation of the 2004 Budget, which contains a repayment schedule to significantly reduce this debt over a five year period. A draft of the proposed 2004 City General Fund Budget is attached in Appendix DE. The City Council is not expected to finalize and approve the 2004 Budget until December, 2003. Long -term financial projections are positive for the City as assessed value is expected to be near $4.3 billion for 2004, which wouldi1 generate approximately $9,030;800'9 million in property tax revenue, and sales tax receipts are expected tcnrill add close to $11 million in revenue. With fewer than 50 full time employees and the Ci ee—lew -ever g few - peirrand- thro the use of contracts for providing-fire library, law enforcement, parks maintenance, street maintenance, probation, public defender, prosecution and animal control services, the City is r . _;___'__ . _ontrolling expenses- relgeivE-to-revefftles- The City Council has_expressed its desire to contract for services as much as possible in order to kee costs under control. Beainnin in 2004 the Cit e ects to commence a "mana• cd coin etition" process to allow adjustments to be made in service levels or costs, as the City Council may de appropriate. CITY OF SPOKANE VALLEY General Fund Budget Variance Report For the Period April 1 - September 30, 2003 Difference Member YTD Between Budget Percent Budget 2003 Rev /Exp. Rcv /1Hxp. and Actual Realized Other Fund Revenues 'Street Fund $8,040,963 $123,094 $4,021,621 $4,019,621 50.01% Arterial Street Fund 405,000 46,917 266.374 138,626 65.77 Hotel/Motel Fund 229,000 54,975 137,596 91,404 60.09 County City Loan Fund 50.500 50,500 Capital Projects Fund 563.556 99.523 382,385 181,171 67.85 Special Capital Projects 563.556 99.523 382,385 181,171 67.85 Fund Street Capital Projects 1.500,000 16.549 16 1,483,451 1.10 Mirabeau Point Project ' 300.000 300,000 Sewer Fund 1,000.000 1.000,000 Stormwater Management 770,000 737 - 200,860 569,140 26.09 Fund Equipment Rental and 79 57.986 57,986 21,122 73.30 Replacement 17 Risk Management General Fund 25.840 13,527,523 498,764 5,464,756 25,840 8,061,767 40.40 Other Funds Expenditures Street Fund $3,941,315 5199,457 $431,177 $.3.510,138 10.94% Arterial Street Fund 400,000 _ 16,549 16.549 383,451 4.14 Hotel/Motel Fund 200 000 2,800 2,800 197,200 1.40 County City Loan Fund 50.50? 50,500 Capital Projects Fund 550,000 550000 Special Capital Projects 550,000 550,000 Fund Street Capital Projects 1,300,000 16,549 16.549 1,483.451 1.10 Mirabeau Point Project 300,000 4,900 295.100 1.63 Sewer Fund 1.000,000 1,000,0000 Stormwater -Management 555,000 538 554,462 0.10 Fund Eauipment Rental and 70.525 3219 42,150 28.375 59.77 Replacement Risk Management 669 669) $9,117,340 $238.574 5515,332 S8,602,008 5.65% CITY OF SPOKANE VALLEY General Fund Budget Variance Report For the Period April 1 - September 30, 2003 Difference September YTD Between Budget Percent Budget 2003 Rev /Exp. Rev /Exp. and Actual Realized General Fund Revenues Sales Tax S10,000,000 S1,402,824 $3 875,977 S6.124,023 38.76 Gambling Tax 462.500 1 295.035 36.21 Leasehold Excise Tax 10.000 1,675 4,446 5,554 44.40 Franchise Fees 272,000 160,132 111,868 58.87 State Shared Revenues 528,000 118,143 381,337 146,663 72.22 Planning & Building pees 1.214 000 91,976 547,898 666,102 45.13 Pines and Forfeitures 1.099 000 68,907 219,655 879,345 19.99 Recreation and Progaur Fees 35,000 18,152 114,599 (79,599) 327.43 Investment Interest 21,000 2 11,139 9.861 53.04 $13,641300 S1,704,245 $5.482,648 58.158,852 40.19% 18 Expenditures City Council City Manager Finance Legal Public Safety Administrative Services Public Works Planning and C.ommunity Development Parks and Recreation General Government Risk General -Fund Street-Fund Arterial Street-Rand 11ote1/Motel -Ftmd Geunty-Giti-L-oan-Fttnd G: tat Prejee Fsnd Special Projects Fund Stree<- Gapitsl- Prejeets Sewer-Fend 1tpn t neat S135 075 $17,977 $79,439 184,167 17,534 117 234 232,735 33,833 134,499 178, 5.44 25,514 107,596 9,621,890 1.281,338 5,163,190 428.674 30,941 245.111 566,606 63,163 269,224 1,049,728 116,234 606,156 990,096 46,492 594,974 1,116,885 33,049 647,499 S14,504,400 $1,666,075 $7,964,922 III e $ndgetier-April -1-to December 31, 2033 £ tin.-- ed n e Fund- 13alanee Revenues $ {1,243,773) $-13;6417508 8,010,963 105,063 - ?29;999 -- 50,503 - - 5637'36 563,556 - 1508 900 1,000,003 79,108 $ (1,213,773) $26,80,023 Ex ( i ©uneil on September 9, 2003) Gr i- F- SPOKANL VALLEY General -Fund Bah ^^ to 4ctu_l A •1 A .. gu. t 1 2093 19 xpendtt -ores $13,892,903 3 ;947344 400,000 10,000 cn - 559,000 550,000 1,500,000 1,000,000 555,030 70 �5 822,520,210 555.636 58.81% 66,933 63.66 98,236 57.79 70,948 60.26 4;458.700 53.66 183,563 57.18 297,382 47.52 443,572 57.74 395,122 60.09 469,386 57.97 56,539,478 54.91% E-stimatecl-Entling FundBalanee $ {1,4. 95,1.73) 1,099,618 --5,000 - -24-9;900- 13,556 13,556 215,000 8,583 25,840 $ 3,105,010 .4t ual— Difference Percent Budged -- itst-M; - I:'" bee+veen$odaet �Ii- eaa;Td � 2033118/31 and 200304/01/03 AeutaIUr real -iicd Revenue/ Gefteral-Ftind-R-eventtest Saks `: ax 8- - 19;889 3 7 47345? $17,526,818 2.5% r...__biieg -T e 462,500 167,465 1295,035) 36% b 'Leasehold ads,: Tax 4-0 89 27792 f7 = 1081 28% F• 372690 4-6G44? 044,883 49% c_..._ Shi R cvcitte 528,330 263,191 i?6478(z 38% Strviee w.ntscs 1,2:1,030 1`5,783 X758,217) 38% Fine a.tCr- Ferffereaes. -1;899; 79 150,718 PI E,25142 11%14 276% Fees 3 §;698 96;4 -� i 276 F itwestinent-Interest 21.030 8.573 Tom 543,611,530 $3,778, 17 Exent3iture : e£ 1,779,612 (Z1,921 Suppli,. 9234 60 Serviees 948994 8417693 r , r h ate g tte d ant` =� .z^; rT -.rr,T •> 110,1.08 2,206 Capital Expenditures 113,195 373.912 Tom: $13,819,900 S6,310,572 :E pcnfl tttres n Expeeditu : Fu .. g i ng-ef {4746',035_} 47467,035) \TC.n` 076+57145) (3;999.1468) RISKS TO BONDHOLDERS Prospective purchasers of the Bonds should consider the following risk factors, as well as other information contained in this Official Statement, prior to purchasing the Bonds. The Bonds are Limited Tax General Obligations of the City The Bonds are limited general obligations payable from general ad valorem taxes, which the City has covenanted to levy annually within the constitutional and statutory limits applicable to non -voted general obligations. The obligation to pay debt service on the Bonds is ultimately not an obligation of the State, the County, or of any other municipal corporation other than the City. No Acceleration The Bond Ordinance does not grant Registered Owners the right to accelerate the payment of the Bonds upon the occurrence and continuance of the violation or breach of any covenant contained in the Bond Ordinance, including 20 3 A esetvao eeltrn est+osed to-eontitsre-€rein these-above? 11% 38% non - payment of principal and interest. The City is liable for principal and interest payments only as they become due. The inability to accelerate the Bonds upon any violation of or breach of any covenant in the Bond Ordinance could give rise to varying interests between Registered Owners of earlier and later maturing Bonds_ The nature and extent of any such variance would depend in part upon the nature and duration of any default. In the event of multiple defaults in payment of principal or interest on the Bonds, the Registered Owners would be required to bring a separate action for each such payment not made. Any such action to compel payment or for money damages would be subject to the limitations on legal claims and remedies against public bodies under State law. Secondary Market and Prices It has been the practice of the Underwriter to maintain a secondary market in the municipal securities that it sells The Underwriter presently intends to engage in secondary market trading of the Bonds, subject to applicable securities laws. However, the underwriter is not obligated to engage in secondary trading or to repurchase any of the Bonds at the request of the Registered Owners thereof. No assurance can be given that a second market for the Bonds will be • available and no assurance can be given that the initial offering prices for the Bonds will continue for any period of time. Loss of Premium from Early Redemption Any person who purchases a Bond at a price in excess of its principal amount should consider the fact that the certain maturities of the Bonds arc subject to early redemption at a redemption price equal to the principal amount of such Bond plus accrued interest under certain circumstances as described herein under the heading "DESCRIPTION OF THE BONDS." Loss of Exemption of Interest from Federal Income Taxes The exemption of interest on the Bonds from federal income taxes is dependent upon continuing compliance by the City with the requirements of the Internal Revenue Code of 1986, as amended (the "Code"). The City has covenanted to comply with the Code. If the interest on the Bonds should be declared taxable by the Internal Revenue Service or legislation or regulations are adopted or there is a final determination by a judicial of administrative authority requiring interest on the Bonds to be included in the recipient's gross income for federal income tax purposes, the interest rate will remain unrhanged. Neither the Bonds nor the Bond Ordinance securing them provides for an adjustment of the interest rate or for mandatory redemption of the Bonds in the event that the interest on the Bonds is declared taxable. If interest on the Bonds should become subject to federal income taxation, the market value of the Bonds may be adversely affected. Enforceability of Remedies The remedies available to Registered Owners are in many respects dependent upon regulatory and judicial actions that are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for may not be readily available or may be limited. The option to be delivered concurrently with the initial delivery of the Bonds by Bond Counsel is qualified as to enforceability of the various legal instruments by limitations imposed by bankruptcy, reorganization, insolvency, fraudulent conveyance, or other similar laws affecting the rights of creditors generally, and by general principals of equity and certain public policy considerations. Ratings There is no assurance that the credit ratings assigned to the Bonds at the time of issuance will not be lowered or withdrawn, the effect of which could adversely affect the market price and the market of the Bonds. See "RATINGS" herein. New City The City has been incorporated for less than eight (8) months at the time of the issuance of the Bonds. The City believes that it has assembled a very qualified management team, bet -thus ti. m is nom' at working together-and-working �i y-Gotmci1 tc- the-€i .. _ .. _ _ - a •. .... . b s etwten -t'he a r_nts- its -Curt rt i1yenr -bird b _ a _ a___acs-ot c ' r = ,opera ' but there is less 21 room for error in the o eration of a new entity .articularly one where. the short time of of >erations has not allowed for financial reserves to be established if there is an unexpected financial exigency. LEGAL MATTERS Tax Exemption General. In the opinion of Preston Gates & Ellis LLP, Spok Washington, Bond Counsel, interest on the Bonds is excluded from gross income subject to federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended and any Treasury Regulations promulgated thereunder (collectively the "Code "), provided the arbitrage requirements of Section 148 of the Code described in this section under the heading "Continuing Requirements." The Bonds are not private- activity Bonds and interest on the Bonds is not an item of tax preference for purposes of determining alternative minimum taxable income for individuals or corporations under the Code. i Towevcr, interest on the Bonds is taken into account in the computation of adjusted current earnings for purposes of the corporate alternative minimum tax under Section 55 of the Code as more fully described in this section under the heading "Certain Federal income Tax Consequences." Except as described herein, Bond Counsel expresses no opinion on any federal, state or local tax consequence arising with respect to ownership of the Bonds. Continuing Requirements Section 148 of the Code has continuing arbitrage requirements that must be met subsequent to the issuance of the Bonds for the interest on the Bonds to be, and remain, exempt from regular federal income taxation. These requirements include provisions that prescribe investment yield limitations for the proceeds of the Bonds and that certain investment earnings be paid on a periodic basis to the federal government. The Bond Ordinance contains covenants of the City to comply with these continuing arbitrage requirements. The Bond Counsel has not undertaken to determine (or to inform any person) whenever any action taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may affect the tax status of the interest on the Bonds. Enforceability of Remedies The remedies available to Registered Owners are in many respects dependent upon regulatory and judicial actions that are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for may not be readily available or may be limited. The option to be delivered concurrently with the initial delivery of the Bonds by Bond Counsel is qualified as to enforceability of the various legal instruments by limitations imposed by bankruptcy, reorganization, insolvency, fraudulent conveyance, or other similar laws affecting the rights of creditors generally, and by general principals of equity and certain public policy considerations. Certain Federal Income Tax Consequences The following is a discussion of certain federal tax matters under the Code. This discussion does not purport to deal with all aspects of federal taxation that may be relevant to particular Bonclowners. Prospective Bondowners, particularly those who may be subject to special rules, are advised to consult their own tax advisors regarding the federal tax consequences of owning and disposing of the Bonds, as well as any tax consequences arising under the laws of any state -or other taxing jurisdiction. Alternative Minimum Tax on Corporations. Section 55 of the Code imposes an alternative minimum tax on corporations equal to the excess of the tentative minimum tax for the taxable year over the regular tax for such year. The tentative minimum tax is based upon alternative minimum taxable income, which is regular taxable income with certain adjustments and increased by the amount of certain items of tax preference. One of the adjustments is a portion '(73% for any taxable year beginning after 1989) of the amount by which a corporation's adjusted current earnings exceeds the corporations alternative minimum taxable income (determined without regard to such adjustment and the alternative tax net operating loss deduction). Interest on tax- exempt obligations, such as the Bonds, is included in a corporation's adjusted current earnings. 22 For taxable years beginning after December 31, 1997, the corporate alternative minimum tax is repealed for small business corporations that had average gross receipts of less than $5 million for the 3 -year period beginning after December 31, 1994, and such small business corporations will continue to be exempt from the corporate akemative minimum tax so long as their average gross receipts do not exceed 57.5 million. obligations" ursuant to the small- Financial Institutions. The City has deli tinted the Bonds as "qualified tax -exem issuer exception provided by Section 265(b' (3) of the Code. which affords banks and thrift: institutions purchasing the Bonds more favorable tax treatment of their deduction for interest expenses than would otherwise be allowed under Section 265 of the Code. Borrowed Funds. The Code provides that interest' paid on funds borrowed to purchase or carry tax - exempt obligations during a tax year is not deductible. In addition, under rules used by the Internal Revenue Service for determining when borrowed funds are considered used for the purpose of purchasing or when carrying particular assets, the purchase of obligations may be considered to have been made with borrowed funds even though the borrowed funds arc not directly traceable to the purchase of such obligations. Property and Casualty Insurance Companies. The deduction for loss reserves for property and casualty insurance companies is reduced by 15% of the sum of certain items, including the interest received on tax- exempt Bonds, such as the Bonds. Social Security and Railroad Retirement Benefits. The Code also requires recipients of certain Social Security or Railroad Retirement benefits to take into account, in determining gross income, receipts or accruals of interest that are exempt from federal income tax. Branch Profits Tax. Certain foreign corporations doing business in the United States may be subject to a branch profits tax on their effectively connected earnings and profits, including tax - exempt interest on obligations such as the Bonds. S Corporations. Certain S corporations that have Subchapter C earnings and profits at the close of a taxable year and gross receipts more than 25% .of which are passive investment income, which includes interest on tax - exempt obligations, such as the Bonds, may be subject to a tax on excess net passive income. Opinion of Counsel Legal matters incident to the authorization, issuance, and sale of the Bonds by the City are subject to the approving legal opinion of Preston Gates & Ellis LLP, Spokane, Washington, Bond Counsel. A form of the legal opinion of Bond Counsel is included herein as Appendix B. Bond Counsel has reviewed this Official Statement only to confirm that the portions of it describing the Bonds and the authority to issue them, conform to the Bonds and the applicable laws under which they are issued. Litigation There is no controversy or litigation pending, or to the best knowledge of the City threatened, affecting the issuance and delivery of the Bonds, or the power and authority of the City to issue the Bonds. Enforceability The provisions of the Bonds and the Bond Ordinance, constitute contracts between the City and the owner or owners of the Bonds, and such provisions are enforceable by the registered owner or owners in a court of competent jurisdiction in the State by mandamus or other appropriate remedy, subject to judicial discretion and the valid exercise of sovereign police power of the State and may be limited by laws affecting the rights of creditors. 23 Continuing Disclosure Undertaking In accordance with Section (b)(5) of Securities and Exchange Commission Rule 15c2 -12 under the Securities and Exchange Act of 1934, as the saute may be amended from time to time (the "Rule "), the City has agreed in the Bond Ordinance to provide or cause CO be provided to each nationally recognized municipal securities information repository ( "NRMSIR ") and to the state information depository for the State of Washington ( "SID"), if any, in each case as designated by the Securities and Exchange Commission (the "Commission ") in accordance with the Rule, the following annual financial information and operating clata for the prior fiscal year (commencing in 2004 for the fiscal year ended December 31, 2003): Annual financial statements, which statements may or may not be audited, showing ending fund balances for the City's general fund prepared in accordance with BARS (or any successor statute) and generally of the type included in the official statement for the Bonds under the heading "Budgeting ent-o` e r . - _ A :. , . '-: yes=, The assessed valuation of the taxable property in the City; Property taxes due, property taxes collected and property taxes delinquent; Regular property tax levy rate per S 1,000 of assessed valuation; and Outstanding general obligation debt of the City. I{t "i f o.0 Sooltant-Eiounw l't :h1ic 1 aer12. �..- f :.z.• y.e.q — . . " y. (i) (n) (iv) (v) Notification Upon Failure to Provide Financial Data OTHER MATTERS Such annual information and operating data described above shall be available on or before nine months after the end of the City's fiscal year. The City's current fiscal year ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to each then existing NRMSIR and the SID, if any. In lieu of providing such annual financial information and operating data, the City may cross- reference to other documents provided to the NRMSIRs, the SID or to the Commission and, if such document is a final official statement within the meaning of the Rule, available from the MSRB. If not provided as part of the annual financial information discussed above, the City shall provide the City's audited annual financial statement prepared in accordance with BARS (or any successor statute), when and if available, to each then existing NRMSIR and the SID, if any. Material Events The City agrees to provide or cause to be provided, in a timely manner, to the SID, if any, and to each NRMSIR or to the MSRB notice of the occurrence of any of the following events with respect CO the Bonds, if such event is material: 1. Principal and interest payment delinquencies; 2. Non- payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties, 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax - exempt status of the Bonds; 7. Modifications to rights of owners; 8. Optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release. 34- 23856; 9. Defeasances; 10. Release, substinition or sale of property securing the repayment of the Bonds; and 11. Rating changes. The City agrees to promptly determine whether the events described above are material. 24 re*t d The City agrees to provide or cause to be provided, in a timely manner, to each NRMSIR or to the MSRB and to the SID, if airy, notice of its failure to provide the annual financial information described above on or prior to the date set forth above. - Termination /Modification The City's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. The continuing disclosure requirement, and any related provision, shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require continuing disclosure, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (2) notifies each then existing NRMSIR and the SID, if any, of such opinion and the cancellation of this requirement. The continuing disclosure requirement may be :upended, without the consent of the Registered Owners or Beneficial Owners of the Bonds, if the City (a) obtains an opinion of nationally recognized bond counsel to the effect that such amendment will not adversely affect the City's compliance with this requirement and the Rule; and (b) notifies and provides each then (misting NRMSIR and the SID, if any, with copies of the opinion and the amendment. Bondowner's Remedies Related to Continuing Disclosure Undertaking A Registered Owner's or Beneficial Owner's right to enforce the provisions related to continuing disclosure undertaking shall be limited to a right to obtain specific enforcement of the City's obligations related thereto, and any failure by the City to comply with the provisions of this undertaking shall not be a default with respect to the Bonds under the Bond Ordinance. 25 No Prior Default of Continuing Disclosure Obligations The City has not defaulted in any material respect in connection with any of its prior continuing disclosure obligations under the Rule, Ratings As noted on the cover page of this Official Statement, Moody's Investors Service, New York, New York, and Standard & Poor's Ratings Services, New York, New York, have assigned their municipal bond rating of " " and " respectively, to the Bonds. No application was made to any other raring agency for the purpose of obtaining an additional rating on the Bonds. Each rating reflects only the view of the applicable rating organization and an interpretation of such rating may be obtained only from the rating agency furnishing the same, at the following address: Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007; Standard & Poor's Ratings Services, 25 Broadway, New York, New York 10004. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies, and assumptions of its own. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by the rating agencies, if, in judgment of such agencies, circumstances so warrant. Any such revision or withdrawal of either such rating may have an adverse effect on the market price of the Bonds. Underwriting - The Bonds are being purchased by the Underwriter from the City at a price of °.`o of par plus accrued interest and will be re- offered at the aggregate price of To of par, subject to the terns of a purchase contract between the City and the Underwriter (the "Purchase Contract"). The Purchase Contract provides that the Underwriter shall purchase all of the Bonds if any are purchased and that the obligation to make such purchase is subject CO certain terms and conditions set forth in the Purchase Contract, the approval of certain legal matters by •counsel and certain other conditions. The initial public offering prices set forth on the cover hereof may be changed from time to time by the Underwriter. The Underwriter may offer and sell the Bonds into unit investment trusts or money market funds, certain of which may be sponsored or managed by the Underwriter, at prices lower than the public offering prices stated on the cover hereof. CUSII' Numbers It is anticipated that CUSIP identification numbers will be primed on the Bonds, but neither the failure to print such numbers on any Bonds or any error with respect thereto shall constitute cause for a failure or refusal by the purchaser hereof to accept delivery of and pay for said Bonds in accordance with the terms of the purchase contract. All expenses in relation to the printing of the CUSIP numbers on said Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for die assignment of said numbers shall be the responsibility of and shall be paid for by the purchaser. Official Statement Certificate At the time of delivery of the Bonds, one or more officials of the City will furnish a Certificate stating that this Official Statement, as of its date and as of the date of delivery of the Bonds, does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained herein, in light of the circumstances in which they were made, not misleading Statements in this Official Statement, including matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the City or the Underwriter and the purchaser of the Bonds. The preparation and distribution of this Official Statement has been authorized by the City. City of Spokane Valley, Washington By: its: Finance and Administrative Services Director 6 Appendix A - Page 1 APPENDIX A DEMOGRAPHIC AND ECONOMIC INFORMATION Industry The City of Spokane Valley is located in eastern Spokane County, Washington, immediately adjacent to the City of Spokane, Washington. It is the second largest city in Spokane County with a current population of 82,005. Historically, much of the economy of the County relied heavily on the natural resource - related sectors of forest products and agriculture. While these industries continue to be important elements of the area's economy, the County has diversified significantly due to the influx and growth of high technology firms and service industries attracted by the region's high quality work force. Employment figures for 2002 indicated that 9.05% of nonagricultural wage/salary jobs in the County are in the manufacturing sector, 25% arc in the wholesale /retail trade sector and 33% are in the services sector. The non - manufacturing sector comprises 85.05% of the nonagricultural wage/salary jobs in the County. The County is a transportation center in the Pacific Northwest, located on the main transcontinental line of Burlington Northern and Union Pacific railways and Amtrak The Spok-me County International Airport is presently serviced by Alaska Airlines, Air Canada, America West, Delta, Horizon Air, Northwest Airlines,. Southwest Airlines, United Airlines /Sky West and Big Sky Airlines. An 80,000 square foot addition to Concourse C was completed in 2000. The Spokane County International Airport recently completed construction of a S15 million five -story garage, including two elevators, which connects to the existing structure on all floors. Also, in the spring of 2001, construction began to rehabilitate and widen Taxiway "F," develop an 8 -acre airfield apron for aircraft parking and build a 120,000 square foot cargo sorting facility. Manufacturing, High Technology and Service Industries The Spokane Industrial Park, located in the City, is the largest operating industrial park in the Pacific Northwest with 545 zoned acres and over 4.2 million square feet of endosed space in 67 separate buildings. The park, owned and operated by Crown Pacific Realty, has approximately 120 tenants employing over 4,500 people. Major tenants of the park include Itron, Inc, Key Tronic, Columbia Lighting, Huntwood Industries and Sea Tec. Kaiser Aluminum Corporation ( "Kaiser "), a subsidiary of Maxxam, Inc., of Houston, Texas, has two facilities in the County: The Trentwood flat - rolled products mill located in the City and the Mead reduction plant located in unincorporated Spokane County. In Febniary 2002, Kaiser filed for Chapter 11 Bankruptcy. Kaiser's Trentwood facility is the only major multi - purpose aluminum rolling mill west of the Mississippi. Trentwood's annual sales averaged S700 million in 2001. Its primary customers are in aerospace, ground transportation, general engineering and packaging markets worldwide. Kaiser has suspended operations at its Mead facilities which produced primary aluminum and ingot sow for aluminum rolling, extruding and forging mills, and aluminum shot which is used as a deoxidizer for magnesium and steel mills. Kaiser has announced reduced operations at its Trentwood Rolling Mall and the plant is for sale. The Key Tronic Corporation, a manufacturer of keyboards and peripheral equipment for the electronics industry, is headquartered in the City. The company operates one plant in the City at the Spokane Industrial Park. The plant has a current employment level of approximately 380. Key Tronic Corporation produces about 25% of the world market for computer keyboard upgrades and has expanded into the area of laptop computers. Agilent Technologies is a manufacturer of signal generators and equipment for communication testing and measurement. It began operations in November 1999 as an independent company formed from Hewlett Packard's test and measurement components divisions. As of November 2001, Agilent Technologies employed approximately 1,100 people in the County, including part -time workers. It announced in December 2001 that it would cut 530 jobs at its Liberty Lake plant over the next 15 months. It just recently announced that it plans to completely dose its plant in Liberty Lake in the next few months. B.F. Goodrich Aerospace, the world's largest supplier of aircraft carbon brakes, built an airline brake manufacturing plant in the County. It has invested approximately S66 million in a 130,000 square -foot facility in an undeveloped area five miles west of the Spokane County International Airport and expects to employ 250 people by 2003. Software Spectrum Inc., whose home office is also located in the City of Liberty Lake, is a software services provided that derives income through software application development, software licensing and technical support. Its parent organization is Level 3 Communications, a publicly traded company headquartered in Broomfield, Colorado. Software Spectrum employees approximately 556 full -time equivalent personnel in the County. Itron Inc. is a meter module and other technology equipment manufacturer, with company -wide revenues of approximately 5225,600,000 in the fiscal year ended December 31, 2001. The company employs approximately 372 full - time equivalent personnel throughout the County. Triumph Group Inc., a Wayne, Pennsylvania -based company that designs and fabricates aircraft components, recently completed its purchase of the Boeing Company's former facility located adjacent to the City of Airway Heights in western Spokane County. The 200,000 square -foot plant, completed in 1990 and operated since that time primarily by Boeing, was sold to the Triumph Group as a part of Boeing's restructuring. The plant manufactures fiberglass and Kevlar ducts for the air handling system used in aircraft. The facility is expected to employ approximately 335 people, including machinists and engineers who recently voted in favor of union contracts with Triumph. The purchase price for the facility has not been disclosed, but the Spokane Jomazl of Business recently reported that the Triumph Group anticipates that the Airway Heights operation will add about $60 million to the Triumph Group's revenues for 2004. Honeywell Electronic Materials Inc., a subsidiary of Honeywell International Inc of Morristown, New jersey, manufactures, develops and fabricates metal products and materials for the semiconductor industry. Honeywell employs approximately 498 employees in the region. Columbia Lighting, the country's third largest producer of fluorescent light fixtures, employs several hundred people in the County. The company occupies a 270,000 square -foot building in the Spokane Industrial Park. Bank of America, N. A., c�rrrendy employs approximately 713 people in the County in all its branches. Washington Trust Bank has an operations center in the City and currently has approximately 483 full -time equivalent employees. Guardian Insurance Company is headquartered in the County and employs approximately 700 people. Travelers Property Casualty has selected Spokane as the site of its West Coast national sales center. Currently, it has approximately 250 employees with plans to expand to 800. Agriculture, Forest Products and Mining The County and adjacent areas include some of the the nation.. Approximately two- thirds of the area's lentils, dry peas, grass seed, hops, apples and pears. production. The Spokane metropolitan arcs serves eastern Washington and northern Idaho. Local forest products include lumber, pulp and paper, plywood, laminated beams, trusses and paneling. The Ponderay Newsprint Company operates a 5310 trillion newsprint mill about 50 miles north of die City in the community of Usk, Washington, in Pend Oreille County. The plant now employs approximately 160. Paper production capacity at the plant exceeds 500 metric tons of newsprint daily. Located approximately 90 miles north of the County is the IVletaline mining district, which is rich in lead and zinc. The Coeur d'Alene mining district, located in Idaho about 60 miles cast of the County, has some of the richest silver, lead and zinc reserves in the nation. According to the U. S. Department of Interior Geological Survey, the area provides the nation with about 15 percent of its silver, 10 percent of its zinc, and 8 percent of its lead The County, as an important transportation hub for the Pacific Notthwest, serves as a major source of supplies and equipment for these mining areas and timber industry. Fairchild Air Force Base Fairchild Air Force Base, the military's largest air refueling base, is located in the western part of the County. Fairchild currently has approximately 5,783 employees generating an annual payroll in excess of $164 million and maintenance and Appendix A - Page 2 more productive agricultural, forest products, and mining areas in farm income is derived from such diverse crops as wheat, alfalfa, Livestock, particularly cattle, also contribute to local agricultural as the major agricultural distribution, trade and service center for operations costs of 3155 million. Approximately 7,500 retired military personnel live within 50 miles of Fairchild. The economic impact of Fairchild on the local economy is estimated at over $380 million annually. Fairchild is not on the list of bases proposed to be closed or reduced in size by the Base Realignment & Closure Commission. Fairchild awarded $35.8 million in construction contracts in 2000 which include a $12.4 million addition to the hydrant fuel system to be completed sometime in 2003, a $9.1 million flight line support facility to be completed in 2002, a $4.5 million survival logistics complex that was completed in 2001, and $9.8 million for a two- building support facility for the Washington Air National Guard which was in the design phase with no construction or completion dates available. In addition, the tankers at Fairchild are in the process of receiving a major avionics upgrade at a cost of approximately $1.25 million per plane and at a total cost of approximately 36.75 million for the entire fleet of 500 tankers to be completed in 2002. The Boeing Company's Wichita plant also has a contract to add new multipoint refueling systems to the fleet at a cost of approximately S2.0 million per plane and is expected to be completed by the end of 2002. Fairchild is due to begin construction in the fall of 2003 on a 12,200 square foot munitions maintenance adminisuation building, which will house the administrative staff of the Support Squadron. Health Care Facilities The Spokane area is the largest medical center located between Minneapolis, Salt Lake City and Seattle. The health care industry in the Spokane area employs over 20,000 people, malting it the largest single employment sector locally. In addition to traditional medical services, the area's hospitals provide excellent treatment in the medical specialties of heart surgery, orthopedics, cancer and kidney treatment, radiation, chemotherapy, eye surgery and resonance imaging. These facilities also treat the developmentally disabled and children with orthopedic correction needs. Sacred Heart Medical Center currently has approximately 3,135 full -time equivalent employees. In the fall of 2001, Sacred Hurt Medical Center completed construction of a 39.0 million Pathology Associates Medical Laboratories Inc,, project. In May 2002, Sacred Heart Medical Center commenced construction of a 320 million seven -story addition to the east tower of its current facility which will include a children's hospital. The project is expected to be completed in 2003. Construction began in June 2002 on a S132 million addition to the west wing of the hospital which will include a women's center and ten additional operating rooms and is expected to be completed by January 2005. Empire Health Services is a large, local healthcare service provider that includes Deaconess Hospital, Empire Consolidated Services, Valley Hospital and Medical Center, Deaconess Rehabilitation Institute and Family Home Care (formerly, St. Luke's Hospital), First Care Med Centers and other related health care services, and employs approximately 2,085 people. Layoffs totaling 75 workers were announced in May 2002. Deaconess Hospital is beginning construction of an $18 million, four -story expansion of its health and education center which will add 88,000 square feet of floor space for physicians' offices and hospital uses. Valley Hospital and Medical Center recently completed work on a two -story expansion which cost an estimated S20 million. The project included expansion of the emergency department, an enlarged outpatient surgery area and two new operating rooms. Educational Facilities Educational facilities in the County include Spokane Community College, Spol,-ane Falls Community College, Gonzaga University, Eastern Washington University, Whitworth College and a branch of Washington State University. Gonzaga University, with 838 employees,has spent approximately $12 million on campus structures since 1985 and completed a $70 million capital fund raising campaign for campus renovations, additions and new buildings including a new law school building. A S14.3 million main classroom hall project is in the process of being completed. Eastern Washington University is located in the City of Cheney in the west portion of the County. Current enrollment is approximately 8,500 and employment is approximately 998. The university also operates a 65,000 square -foot building in downtown Spokane which serves as the Spokane Higher Education Center and also provides programs at the new River Point Campus, primarily in the fields of business administration and various health care fields. The Spokane Intercollegiate Research Technology Institute ( "SIRTI ") completed a 64,000 square -foot, four story, state- of-the-art building in 1994. SIRTI's focus is on developing new business and ways in which laboratories can help existing businesses. The building houses space for education, training, research and development, and technology Appendix A — Page 3 transfer for commercial uses and has been developed by a consortium of Eastern Washington University, Gonzaga University, Washington State University, Whitworth College, and the Community Colleges of Spokane. Appendix A - Page 4 Population Historical, current and estimated population data for Spokane County and the City of Spokane Valley are the following: Year 2003 2002 2001 2000 1990 1980 market: Appendix A - Page 5 Spokane County 428,600 425,600 422,400 417,939 361,333 341,835 City of Spokane 197,400 195,500 195,700 195,629 177,165 171,300 1. 92nd Air Refueling Wing, Fairchild AF Base 2. Spokane School District No. 81 3. Sacred Heart Medical Center 4. State of Washington 5. City of Spokane 6. Empire Health Services 7. Spokane County 8. U. S. Government 9. Central Valley School District No. 356 10. Community Colleges of Spokane City of Spokane Valley 82,005 Source: U S Burtrui of t lx Gnats and Washington State Office of Financial Management; Fortrasthig Dit lion, in the official April 1, 2003 population estimates. (1) Incorporated as of August 31, 2001. Employment Statistics (Annual Averages) The following employment figures for Spokane County are provided to characterize the area's general labor Spokane County's.Largest Employers(1) Employer Employees 5,919(2) 3,213 2,919 2,871(3) 2,145 2,043 2,039 1,540(4) 1,457 1,454 (1) As of December 19, 2001 (2) Includes 4,699 military personnel attached to Fairchild Air Force Base and the Washington Air National Guard at Fairchild. Also includes 1,220 civilian employees that are employed by the base. (3) The State does not include the Community Colleges of Spokane, shown separately. (4) Includes an undetermined number of part -time employees. Excludes military, VA Medical Center and U. S. Postal Service Employees. Source: Joumml of &uiness 2003 Book of Lists, Nonezt Bwiru3 Atsss Inc, published January 2, 2003. The following employment figures for the City of Spokane Valley are provided to characterize the labor market in the City City of Spokane Valley's Largest Employer's City of Liberty Lake(1) 4,480 State of Washington 6,098,300 6,041,710 5,974,910 5,894,143 4,866.663 4,132,353 2 Provided by the Spokane Valley Chamber of Commerce. 3 These employers have either their headquarters or significant operations within the boundaries of the City. Unless otherwise reported, employment figures represent total number of employees. not just employees in Spokane Valley. ' Does not include U. S. Government, U.S. Postal Service, Avista Utilities, the Spokesman - Review and the City who have significant operations and presence in the City, but arc not headquartered in the City. Employer Central Valley School District East Valley School District: Columbia Lighting Kaiser Aluminum & Chemical Corp. Itron, Inc. I Iuniwood 1 ndustries CPM Development Corp. Valley Hospital and Medical Center Window Products. Lnc. Labor Force and Unemployment The following table shows labor force and employment data for the County since 1997 as well as unemployment rates for the State and the United States for the same period. United Year Labor Force Employed States 2002 207,100 193,200 2001 207,070 193,460 2000 211,200 200,400 1999 210,300 199,300 1998 207,100 197,100 1997 204,800 195,400 Source: Wasbirt *g ri Erripityria It Department (1) Preliminary figures for the year ended December 31, 2002. Non Agricultural Employment Data By Industry The table below sets forth the total number of full -time and part -time employees in the County for the years and industries is shown. 1998 1999 2000 2001 2002(2) 190,200 190,000 19 6, 300 195,500 193,600 21,846 21,585 22,300 18,700 17,700 9,491 10,299 11,600 10,000 9,800 7,305 7,416 8,400 7,800 7,5000 47,015 17,479 50,100 50,200 48,500 10,653 10,620 11,000 11,300 11,300 53,814 54,854 59,900 64,100 64,700 29,250 29,817 32,000 33,400 34,100 (1) Excludes proprietors, self - employed, members of armed senates, workers in private households, and agriculture. Includes hall- and part -time wage and salary workers. (2) Preliminary figures for the year ended December 31, 2002. Source: Wa n Stale Empko mazt .Security Aparxrort, Labor and A4Q-ket. & Economic Ana6sis Branh Non- agricultural Wage /Salty Workers(i) Manufacturing Construction and Mining Transportation and Public Utilities Wholesale/Retail Trade Finance, Insurance & Real Estate Services Government Personal Income Trends and Estimated Median Household Income The following table shows median and personal income trends in the County for the years shown. Year 2002 Appendix A - Page 6 Total Personal Income (000's) N /A(1) Employees 1,457 670 540 500 498 493 450 339 239 Percent of Change Type of Business Education Education Manufacturing - lighting products Manufacturing - Aluminum Products Electronics Ivlanufacturin" Cabinets Concrete Asphalt Health Care Window Products Spokane County 6.7% 6.6% 5.1 5.2 4.8 4.6 Unemployment Rates State of Washington 6.4% 4.8 4.7 4.8 4.8 Median Household Percent of Income Change $41,636(1) 5 Kaiser Aluminum and Chemical Corporation is in a Chapter 11 Bankruptcv proceeding and has announced recently that it anticipates additional lay -offs. It is unknown if any of those will occur at the Kaiser facility, in the City. 6 This fi.ure represents the number of employees at Valley Medical Center in the City. Valley Medical Center is owned by Empire.Health Services. 4.8% 4.0 4.2 4.5 4.9 2001 N /A(1) N/A 40,615(2) 0.92% 2000 $10,691,993 7.22% 39,453(2) 8.93% 1999 9,920,000 2.33% 37, 308 3.09% 1998 9,693,856 5.50% 36,576 3.79% 1997 - 9,188,490 630% 35,242 4.61% 1996 8,644,300 N/A 33,688 N/A (I) Estimates presently unavailable ( Preliminary Estimate Source: U.S. DepartmeraciConmate, Regional Ea»wrxc Ir f t. an Cdr, Bun= of Emncnic Ar4sis Earnings by Industry The following table shows Spokane County wage and salary, labor and proprietors' earnings by major industry type for the years 1996 through 2000. Figures are shown in thousands. Employment by Place of Work Total Employment • By Type: Wage and Salary Appendix A - Page 7 1996 1997 1998 1999 2000 Total Personal Income $8,644,300 r $9,188,490 $9,693,856 $9,920,000 $10,691,993 Earnings by Industry Fawn 21,447 10,952 10,959 2,998 6,684 Non -Farm 6,116,516 6,468,455 6,847,044 7,202,696 7,867,081 Private 4,833,691 5,152,649 5,486,390 5,812,948 6,412,983 Ag. Serv., Forest., Fishing 26,979 31,883 36,494 40,041 41,581 Mining 22,786 23,310 17,286 19,654 17,632 Construction 465,573 454,512 450,175 509,215 527,011 Manufacturing 829,016 863,334 891,608 893,139 956,639 Transportation and Utilities 400 ,670 407,253 424,682 450,253 723,993 Wholesale Trade 395,178 440,420 478,255 525,788 516,655 Retail Trade 668,346 698,474 733,751 755,491 824,671 Finance, Insurance and RE. 408,376 459,626 520,158. 575,887 606,212 Services 1,616,767 1,773,837 1,933,981 2,043,480 2,198,589 Gov't & Gov't Enterprises 1,282,825 1,315,806 1,360,654 1,389,748 1,454,098 Federal /Civilian 228,358 235,107 247,002 256,273 275,124 Military 216,835 207,864 199,437 194,762 196,734 State and Local 837,632 872,835 914,215 938,713 . 982,240 Source U.S DDpzrtmo t gf c2nvn w BMW! r f Earrm cAn4sis Employment by Major Industry The table below sets forth the total number of full-time and put -time employees in Spokane County for the years and industries shown. 1996 1997 1998 1999 2000 233,754 237,481 240,429 244,090 250,334 193,631 197,453 200,297 202,882 207,979 Proprietors 40,123 40,028 40,132 41,208 42,355 Farm 2,063 2,050 2,137 2,124 2,124 Non -Farm 38,060 37,978 37,995 39,084 40,231 Bl, Indmr.: Farm 2,409 2,393 2,432 2,491 4,219 Non -Farm 231,345 235,088 237,997 241,599 247,915 Private 196,439 200,056 202,824 205,917 211,960 Ag. Services, Forestry, Fish 2,076 2,180 2,241 2,413 2,555 & Other Alining 345 373 295 305 313 Construction 14,614 14,364 13,995 14,968 15,249 Manufaauring 23,349 24,023 23,568 23,257 23,591 Transportation /Public Ut. 9,451 9,205 9,399 9,497 9,920 Wholrcalc Trade 12,489 12,887 13,443 13,995 14,227 Retail Trade 42,868 42,989 43,565 43,307 44,678 Finance, Ins &Real Estate 18,977 19,440 19,677 20,353 21,212 Services 72,270 74,595 76,641 77,822 80,215 Gov & Gov Enterprises 34,906 35,032 35,173 35,682 35,955 Federal /Civilian 4,282 4,287 4,301 4,333 4,490 Military 5,807 5,531 5,244 4,974 4,852 State and Local 24,817 25,214 25,628 26,375 26,613 Source: U.S. Di .a.rerrimstzt of Gyrmen ; BUM= of Emla»rc Aruzlysis, Rtgiav d Econank b frnmazion Stan. Taxable Retail Sales (S000's) Appendix A - Page 8 Year Spokane County 20020) $5,572,173 2001 5,620,053 2000 5,577,511 1999 5,234,923 1998 4,779,096 (1) Preliminary, subject to change. Source: Washing= State cfRaerze. Taxable Retail Sales by Industry (1' Quarter 2003) - Spokane County Industry: Taxable Retail Sales Building Materials, Hardware $54,103,479 General Merchandise 124,064,361 Food 54,250,047 Autos, Marine, Aircraft, Gasoline 182,767,635 Apparel and Accessories 35,551,364 Furniture, Furnishings /Equipment 54,286,866 Eating and Drinking Places 103,106,113 Miscellaneous Retail Stores 118,083,166 Services: Total S 726,213,031 Hotels/Motels 16,406,907 Personal Services 8,818,031 Business Services 40,831,948 Computer Services 9,129,271 Automotive Repair Services 45,830,445 Other 35,160,052 Total $ 147,047,383 Contracting • 138,089,853 Manufacturing 28,097,668 Transportation/Comm./Utilities 68,104,965 Wholesaling 1 22,352,676 Finance /insurance /Real Estate 17,815,214 Other Business 6,011,824 Total All Industries $1,254,605,614 Source: Was/rivrtn State lhrbnart gieReanu4 Quamrly Business Retsee, 1R Quarter 2003, by Standard Industrial Class. Appendix A - Page 9 City of Spokane Valley' Spokane Valley, Washington Lehman Brothers Seattle, Washington Re: City of Spokane Valley Limited Tax General Obligation Bonds, 2003 Dated November 2003, Principal Amount of 89,3C/3,G009 430,000* Ladies and Gentlemen: We have acted as bond counsel to the City of Spokane Valley (the "City") and have examined a certified transcript of the proceedings taken in the matter of the issuance by the City, of its Limited Tax General Obligation Bonds, 2003 (the "Bonds"), dated November _ , 2003 in the aggregate principal amount of $9 430,000*, issued, pursuant to Ordinance No. , (the "Bond Ordinance") adopted by the City Council of the City on October 28, 2003, for the purpose of providing a portion of the funds to construct and equip a new regional and conununity center. The Bonds are subject to mandatory and optional redemption as provided in the Bond Ordinance. We express no opinion relating thereto, or relating to the undertaking by the City to provide ongoing disclosure pursuant to SEC Rule 15c2 -12. As to questions of fact material to our opinion, we have relied upon representations of the City contained in the Bond Ordinance and in the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation. From such examination it is our opinion, as of this date and under existing lain, that: 1. The Bonds have been legally issued and constitute valid general obligations of the City, except to the extent that the enforcement of the rights and remedies of the holders and owners of the Bonds may be limited by laws relating to bankruptcy, insolvency, moratorium, reorganization or other similar laws of general application affecting the rights of creditors, by the appkication of equitable principles and the exercise of judicial discretion; 2. The Bond Ordinance is a legal, valid and binding obligation of the City, has been duly authorized, executed and delivered and is enforceable in accordance with its terms, except: to the extent that enforcement may be limited by laws relating to bankruptcy, insolvency, moratorium or other similar laws of general application affecting the rights of creditors, by die application of equitable principles and the exercise of judicial discretion. 3. Both principal of and interest on the Bonds are payable out of annual levies of ad valorem taxes to be made upon all taxable property within the City sufficient, together with other legally available funds of the City, to pay principal and interest on the Bonds, within the Constitutional and statutory tax limitations pertaining to non -voted general obligations which, together with other available funds, will be sufficient to pay such principal and interest as the same shall become due; and 4. Interest on the Bonds is excluded from gross income for purposes of federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code "). The Bonds are not private activity bonds. Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals or corporations, but is taken into account in the computation of adjusted current earnings for purposes of the corporate alternative minimum tax under Section 55 of the Code. The opinions stated in this paragraph Appendix B - Page 1 APPENDIX B PROPOSED FORM OF LEGAL OPINION November , 2003 are subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The City has designated the Bonds of this series as 'qualified tax exemption obligations" under Section 265 (b)(3) of the Code. We express no opinion regarding any other federal, state or local tax consequences arising with respect to ownership of the Bonds. This opinion is given as of the date hereof and we assume no obligation to update, revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Appendix .B — Page 2 Very truly yours, PRESTON GATES & ELL IS LLP Michael C. Ormsby The Depository Trust Company ( "T)TC "), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully - registered bonds registered. in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully - registered Bond certificate will be issued for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ( "Direct_Participants ") deposit with 1YI'C. DTC also facilitates the post -trade settlement among Direct Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book -entry changes in Direct Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include' both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The 'Depository Trust & Clearing Corporation ( "DTCC "). DTCC, in turn, is owned by a number of Direct Participants of DTC and Ivlernbers of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, GSCC, MBSCC, and 'EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock :Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non - U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants "). DTC has Standard & Poor's highest rating: AAA. The DTC rules applicable to its Direct and Indirect Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Information on DTC's website and any links to other websites residing on DTC's website are not a part of this document. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ( "Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to' receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant. through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will nor receive certificates representing their ownership interest in Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of OTC's partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with IDTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Fonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has Appendix C - Page 1 APPENDIX C BOOK -ENTRY ONLY SYSTEM agreed to obtain and transmit notices to Beneficial Owners, or in the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and roquest that copies of the notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached CO the Omnibus Proxy). Principal and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the City or the Bond Registrar on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in `street name," and will be the responsibility of such Participant and not of DTC, the Bond Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Bond Registrar, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City or the Bond Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. The information in this. section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. NEITHER THE CITY NOR THE BOND REGISTRAR 'x'ILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO DTC PARTICIPANTS, OR THE PERSONS FOR WHOM THEY ACT AS NOMINEES, WITH RESPECT TO THE PAYMENTS TO OR TIC PROVIDING OF NOTICE TO THE DIRECT PARTICIPANT'S, THE INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS OF THE BONDS. THE CITY AND THE BOND REGISTRAR CANNOT AND DO NOT GIVE ANY ASSURANCES THAT DTC, DIRECT PARTICIPANTS OR OTHERS WILL DISTRIBUTE PAYMENTS OF PRINCIPAL OF OR INTEREST ON THE BONDS PAID TO DTC OR ITS NOMINEE, AS THE REGISTERED OWNER, OR ANY NOTICES TO THE BENEFICIAL OWNERS OR THAT THEY WELL DO SO ON A TIMELY BASIS, OR THAT DTC WILL ACT IN A MANNER DESCRIBED IN THIS OFFICIAL STAT Appendix C - Page 2 got Date Renewal Annualized Value - 'car -to -Date Agrccrncnt Approved Date 2003 (7/31/0309/30/03j Cornments Not 6 Courts 3/25/03 12/31/04 $1,064,004 413,336332 004 Nor-e 1 Prosecution 3/25/03 12/31/04 362,24-4 1.51,$0118105 No 1 Public Defender 3/23/03 12/31/04 347,928 144,970173 964 Note 1 jury 3/25/03 12/31/04 -0- cog is per trial Management Law 3/6/03 12/31/04 11,537.018 3 Note 4 Enforcement Work Release 3/6/03 12/31/04 -0- 16,337.25 .Hourly, based upon type fail Services 3/23/03 12/31/04 S9,472KR, 44,75354.416 Notes 1, 2 information Svcs 4/5/03 12/31/04 54,817 - 19 Note 1 Pretrial Services 3/25/03 12/31/04 25,50 10;62612,751 Note 1 Holing E.xaminer 3/20/03 12/31/04 17;95220 066. 8774010,033 Notes 1, 2 Ennccri.ng 4/22/03 12/31/04 529,813 67,236 Note 3 Road 5/27/03 12/31/04 3,123,126 !...5-7.3.9.8334 087 Nate 1 Tv1amtcnance Animal Control 4/22/03 12/31/04 400,C00 4.;9,315191,302 Note 1 Stormwarer 5/27/03 12/31/04 4 076 538 IJoies 1, 2 ManagemEnt Emergency Pending 62,106 -0- Nate 4 Management ] ?arks - Pending #'?448765. 2'3864384,769 Maintenance Sewer Collection Pending -0- and Treatment?' Probation Pending -0- Public Safety Pending Bldg O &.M Toils; Notes Pending 18,52,1 <218 , 432,115 1,3'7,2335 Note 1: Contract is based upon #dual, so annuals - d cost is estimated. Note 2: Agreement does not include estimate. Annual cost is based upon year - to - dace, which may not be realistic. Note 3: Costs assonated'all speciFic capital projects are addirtonaL Note 4: Fff €ctiveJune 1, 2003_ Note 5: These torahs are based only on figures available as of , 2003 and do not include amounts paid on either an hourly or per event•basis_ Nc e 6; Some of these contracts were approved rind entered into prior to the date of incorporation of the T_ Source: airy of SSoL re VaNey APPENDIX. D ONGOING SERVICE CONTRACT'S wrTH SroKAINE COUNTY ix E - Financial Reports of City / Appendix E Financial Reports of City K: 1481421OULO51MCOOMC ®O29WO Appendix F - Cites General Fund Budget. Appendix F 2004 City General Fund Budget ORDINANCE NO. K!-4344210i320e. - PO.AM —:e a- S -53-AM K:W81a21000021 Moo_ N39167_torioloa4MOrOa 2;yO PM4O:63 - AM AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, OF SPOKANE COUNTY, WASHINGTON, PROVIDING FOR THE ISSUANCE OF LIMITED • TAX GENERAL OBLIGATION BONDS bN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $93009,430,000 IN ORDER TO OBTAIN FUNDS TO PAY PART OF THE COSTS OF ACQUISITION AND CONSTRUCTION OF A REGIONAL CENTER AND RELATED CAPITAL FACILITIES; PROVIDI1 IG FOR THE SALE OF THE BONDS TO LEHMAN BROTHERS, OF SEATTLE, WASHINGTON; PROVIDING FOR THE REGISTRATION OF SAID BONDS; CREATING CERTAIN FUNDS FOR SAID BONDS; FIXING THE INTEREST RATE, MATURITIES, FORM, TERMS AND COVENANTS OF SAID BONDS; PROVIDING CERTAIN COVENANTS WITH RESPECT TO FEDERAL TAX LAW; PROVIDING FOR THE PURCHASE OF MUNICIPAL BOND INSURANCE; PROVIDING CERTAIN COVENANTS WITH RESPECT TO FOR-ON -GOING DISCLOSURE; PROVIDING FOR THE EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO CITY OF SPOKANE VALLEY Spokane County, Washington LIMITED TAX GENERAL OBLIGATION BONDS, 2003 Principal Amount of S93009,430,000 BE IT ORDAINED by the Mayor and the Members of the City Council of the City of Spokane Valley, of Spokane County, Washington, as follows: WHEREAS, the City of Spokane Valley (the "City "), of Spokane County, Washington, is a duly incorporated and existing municipal corporation organized and operating under the Constitution and laws of the State of Washington; WHEREAS, the City is authorized and empowered by RCW 35A.40. 35.37 and 39.46 to authorize sell and deliver general obligation bonds to finance the acquisition, construction and installation of improvements and betterments to City facilities; WHEREAS, the City Council of the City (the "Council ") has determined that it is in the best interests of the residents of the City to construct and equip a community center at Mirabeau Point, to be called CenterPlace; WHEREAS, Tthe Council has determined that there are certain road improvements that are important to the City and should be completed; and WHEREAS, Lehman Brothers, of Seattle, Washington, has offered to purchase the City's 1 limited tax general obligation bonds in an amount of not to exceed S9, 3999,430,000 under the terms hereinafter set forth; NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED as follows: Section 1: DEFINITIONS As used in this Ordinance, capitalized terms shall have the meanings provided in this Section. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders, and vice versa. Words imparting the singular number shall include the plural numbers and vice versa, unless the context shall otherwise indicate. • Acquire, Acquiring or Acquisition includes the opening, laying out, establishment, purchase, construction, securing, installation, reconstruction, lease, gift, grant from the federal government, the State of Washington, any public body therein or any person or entity, the condemnation, transfer, option to purchase, other contract, or other acquirement, or any combination thereof. Bond Fund shall mean the "City of Spokane Valley General Obligation Bond Fund" created by this Ordinance. Bond Insurance shall mean a policy of municipal bond insurance provided by which shall insure payment of the principal of and interest on part or all of the bonds. Bond Purchase Contract m eans the written contract between Lehman Brothers and the City to purchase the Bonds from the City. Bond Register shall mean the registration records of the City, maintained by the Bond Registrar, on which shall appear the names and addresses of the Registered Owner of the Bonds. Bond Registrar shall mean either of the Washington State Fiscal Agencies or their successors in functions, as now or hereafter designated for the Bonds. Bond Year means each one -year period that ends on the date selected by the City. The first and last Bonds Years may be short periods. If no day is selected by the City before the earlier of the final maturity date of the Bonds or the date that is five (5) years after the date of issuance of the Bonds, Bonds Years end on each anniversary of the date of issue and on the final maturity date of the Bonds. Bonds shall mean the hereinafter authorized limited tax general obligation bonds in the aggregate principal amount of not to exceed $93999.430,000. City shall mean the City of Spokane Valley, of Spokane County, Washington, a duly incorporated and existing City organized and operating under the laws of the State of Washington acting by and through its employees, officers and City Council. City Clerk or Clerk shall mean the de facto or de jure City Clerk, or other officer of the City who is the custodian of the seal of the Citv and of the records of the proceedings of the City, or his /her successor in function, if any. City Manager shall mean the Chief Administrative Officer of the City, appointed by the Council, or his/her successor in function, if any. • ,.a or rye jurc City Clerk, or-eith -Gitvy- who-is- e etistedivau-ef-the seal of the City - a el of:the records of -the pree.ccdinas of the Gity, slieeesf+.014ii4ttnetion, if any. Code shall mean the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. Commission shall mean the Securities & 'Exchange Commission. Cost of the Protect or Costs of the Project or any phrase of similar import, shall mean all or any part designated by the City of the costs of the Project, or interest therein, which costs, at the option of the City, may include all or any part of the incidental costs pertaining to the Acquisition of the Project, including, without limitation: (1) Preliminary expenses advanced by the City from funds available for the use therefor, or advanced by the federal government, or from any other source, with approval of the Council, or any combination thereof; (2) The costs of rnaldng surveys, audits, preliminary plans, other plans, specifications, estimates of costs and other preliminaries; (3) The costs of appraising, printing, estimates, advice, services of engineers, architects, financial consultants, attorneys at law, clerical help, or other agents or employees; (4) The costs of contingencies; (5) The costs of issuance of Bonds; (6) The costs of funding and short -term financing, revenue warrants, bonds anticipation bonds or other temporary loans appertaining to the Project, and of the incidental expenses incurred in connection with such loans; (7) The Acquisition costs of any properties, rights, easements, or other interest in properties, or any licenses, privileges, agreements and franchises; and (8) All other expenses necessary or desirable and appertaining to the Project, as estimated or otherwise ascertained by the City. DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for the Bonds, or any successor or substitute depository for the Bonds. Finance Director shall mean the Director of Finance and Administrative Services of the City, or his or his/her successor in functions, if any, Washington. Financial Advisormcans Seattle-Northwest Securities Corporabon, of Seattle, Improvement(s1 incI ides the buildings, structures and appurtenances constructed and equipped with the proceeds of the Bonds. Mayor shall mean the de facto or de jure lvlayor of the City, or any presiding officer or titular head of the City or his/her successor in functions, if any. SRB means the Municipal Securities Rulemalcing Board or any successor to its functions. Net Proceeds when used with reference to the Bonds, shall mean the face amount of the Bonds, plus accrued interest, if any and original issue premium, if any, and less original issue discount, if any. NRMSR means a. nationally recc nixed municipal securities intbrmatton rep +sitorv. Operating Reserve Account shall mean the "City of Spokane Valley CenterPlace Operating Reserve Account" created by this Ordinance. Project shall mean the undertaking or undertakings of Acquiring the Improvements described herein, Project fund shall mean the "City .of Spokane Valley Capital Improvement Project Fund" created by this Ordinance for the purpose of paying a portion of the Costs of the Project. Registered ever or Registered Owners shall mean the'person or persons whose names and addresses shall appear on the Bond Register maintained by the .Bond Registrar, as the owner or owners of the Bonds. Rule means the Commission's Rule 15c2 -1. under the Securities Exchan e of 1934 as the wine ma be amended from time to time. STD means the State information depository for the State of Waslunton- Section 2: THE PROJECT The City will acquire, contract and install the following irnprovement. ‘ ollectively_t1ie `Prof ect "): (1) The construction of a new regional and community center, CenterPlace at Mirabeau Point. ( "CenterPlace ") to house a large regional meeting room, a l-a conference center for commmunity and cultural activities and a senior center, including furnishings, appurtenances and equipment; (2) The Acquisition and installation of road improvements -. including: (a) - at-16 Avenue (Dishman -Mica Road to Pines Road); (b) -.Park Road (8 Avenue to Appleway Avenue); (c) - Evergreen Road (16 Avenue to 2' Avenue); and (d) - eOther road construction and improvement projects as set forth in the Capital [irtprovetnent Plan of the City - including road repevefnen-t-an-el improvement in conjunction . ith t1 c Septic Tank Elitninatieinel tid•ing Carnahan, Sippic and-Bp s -Reader eets in eradalc which were- ifieI -uded in Phase iii, \ ' era a a ie e _ c '- - elegy (collecti - , . ... , _ _ _ _ :s -arc defined as a ej ;et "). (3) Payment of engineering fees, administrative costs, legal fees and all other costs incidental thereto, together with the purchase of all appurtenances and machinery necessary or useful for said Project. Section 3: COST OF THE PROJECT The total cost of CenterPlace is estimated to be approximately 510,000,000, of which not to exceed 57,000,000 will be financed by the proceeds of the Bonds. The total cost of the street improvements is estimated to be 520,386,700, of which not to exceed $2,;(10430,000 will be financed by the proceeds.of the Bonds. Any additional costs of the Project will be paid from other legally available funds, including private donations, loan and grant funds and other legally available funds of the City. Section 4: PLEDGE OF FAITH AND CREDIT; TAX LEVIES The Bonds are limited tax general obligations of the City and, as such, the full faith and credit of the City are hereby pl edged for their payment, within the appropriate Constitutional and statutory limitations pertaining to non -voted general obligations. The officers now or hereafter charged by law with the duty of levying taxes for the payment of said Bonds and the interest thereon shall, in the manner provided by law, make annual tax levies upon all of the taxable property within the City sufficient, together with other legally available funds, to m eet the payments of principal and interest maturing and accruing as set forth herein, having always in mind the Constitutional and statutory tax limitations pertaining to non -voted general obligations. Section 5: REGISTRATION, PLACE AND MANNER OF PAYMENT (a) Registrar /Bond Register. The City hereby requests that the Finance Director adopt the system of registration approved by the Washington State Finance Committee. The City shall cause a Bond Register to be maintained by the Bond Registrar. So long as any portion of the Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of the Bonds at its principal office. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient records for the registration and transfer of the Bonds which shall at all times be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bonds, transferred or exchanged in accordance with the provisions of such Bonds and this Ordinance, and to carry out all of the Bond Registrar's powers and duties under this Ordinance. The Bond Registrar shall.be responsible for its representations contained in the Certificate of Authentication on the Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of the Bonds as the absolute owner thereof for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bonds shall be made only as described herein, but such registration may be transferred as herein provided. All such payments made as described herein shall be valid and shall satisfy and discharge the liability of the City upon such Bonds to the extent to treat the person in whose name any Bonds is registered as the absolute owner thereof for all purposes of this Ordinance and any applicable laws, notwithstanding any notice to the contrary received by the Bond Registrar or the City. (c) DTC Acceptance/Letter of Representations. The Bonds initially issued shall be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City shall execute and deliver to DTC (or has heretofore executed and delivered to DTC) a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds in respect to the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that is permitted or required to be given to Registered Owners under this Ordinance (except such notices as shall be required to be Oven by the City to the Bond Registrar or to DTC), the selection by DTC or any DTC participant of any person to receive payment in the event of a partial redemption of the Bonds, or any consent given or other action taken by DTC as the Registered Owner. For so long as Bonds is held in fully immobilized form hereunder, DTC or its successor depository shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC or its nominee and shall not mean the owners of any beneficial interest in such Bonds. (d) Use of Depository. (i) The Bonds shall be registered initially in the name of CEDE & Co., as nominee of DTC, with one Bonds for each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such immobilized Bonds, or any portions thereof, may not hereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the City pursuant to subsection (ii) below or such substitute depository's successor; or (C) to any person as provided in subsection (iv) below. (ii) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository, or a determination by the City to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the City may appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (iii) In the case of any transfer pursuant to clause (A) or (B) of subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the City, issue a single new Bonds for each maturity then outstanding, registered in the name of such successor or such substitute depository, or its nominee, as the case may be, all as specified in such written request of the City. (iv) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the City determines that its is in the best interests of the beneficial owners or the Bonds that such owners be able to obtain Bonds in certificated form, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fully immobilized form. The City shall deliver a written request to the Bond Registrar together with a supply of definitive Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in such denominations and registered in the names of such persons as are requested in such written request. (e) Transfer or Bxchanue of Re_istered Ownershi t Change in Denominations. The registered ownership of any Bonds may be transferred or exchanged, but no transfer of any such Bonds shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bonds duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bonds and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bonds (or Bonds at the option of the new Registered Owner) or the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bonds, in exchange for such surrendered and canceled Bonds. Any Bonds may be surrendered to the Bond Registrar and exchanged, without charge, for any equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bonds during the 15 days preceding any interest payment or principal payment date. (f) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. For so long as all Bonds are in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter to Representations. In the event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. Section 6: REDEMPTION OF BONDS PRIOR TO MATURITY A. Optional Redemption of Bonds. Bonds maturing in the years 200_ through 20, inclusive, shall not be subject to redemption prior to their respective maturity dates. The City hereby reserves the right and option to redeem the Bonds maturing on and after December 1., 20 at any time on or after December 1, 20 , in whole or in part (maturities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar or DTC shall determine), at the price of par plus accrued interest, if any, to the date of redemption. B. Notice of Redemption. Notice of any such redemption shall be sent by the Bond Registrar by first - class mail, postage prepaid, not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption, to the Registered Owner of each Bond to be redeemed at the address shown on the Bond Register. So long as the Bonds are in book -entry form, notice of redemption shall be given as provided in the Letter of Representations. This requirement shall be deemed to be complied with when notice is mailed as herein provided, regardless of whether or not it is actually received by the Registered Owner of any Bond to be redeemed. In addition, such redemption notice shall be mailed within the same period, postage prepaid, by first-class mail, to Lehman Brothers, of Seattle, Washington, or its successor as Underwriter, and to Moody's Investors Service, in New York, New York, or its successor, if any, but such mailing shall not be a condition precedent to the redemption of such Bonds. The City shall also cause the Bond Registrar to provide notice of redemption (at least thirty (30) days) to each NRMSIR and SID, if any, in accordance herewith. C. Selection of Bonds for Redemption. For as long as the Bonds are held in fully immobilized form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. In all other cases, if the City redeems at any one time fewer than all of the Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar) in increments of $5,000. In the case of a Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. D. Effect of Redemption. When so called for redemption, such Bonds shall cease to accrue interest on the specified redemption date, provided funds for redemption are on deposit at the place of payment at that tune, and such Bonds shall not be deemed to be outstanding as of such redemption date. E. Purchase on Open Market. The City reserves the right to purchase any of the Bonds on the open market at any time at any price. Section 79: BOND FUND Therc is hereby created, and shall be maintained by the Finance Director, a fund known as the "City of Spokane Valley Limited Tax General Obligation Bond Fund" (the "Bond Fund ") which shall be drawn upon for the sole purpose of paying the principal of and interest on the Bonds. Money on deposit in the Bond Fund not immediately needed to pay such interest or principal may be temporarily deposited in such institutions or invested in any obligations which are legal investments for City funds. Any interest earnings from the investment of such money shall be deposited into the Bond Fund. Section +08: PROJECT FUND There is hereby created, and shall be maintained by the Finance Director, a fund known as the "City of Spokane Valley Capital Improvement Project Fund" (herein called the "Project Fund "), into which shall be deposited the proceeds of the sale of the Bonds. Moneys in the Project Fund shall be used for the payment of part of the cost and expense of the Acquisition and installation of the Project. All interest earnings on moneys invested from the Project Fund shall be deposited into said Project Fund. The City's share of any liquidated damages or other moneys paid by defaulting contractors or their sureties will be deposited into said Project Fund to assure the Acquisition and completion of the Project. When the Project has been completed and all costs related thereto, including all principal of and interest on the Bonds is paid in full, any moneys remaining in the Project Fund may be deposited in the Bond Fund, created hereafter, or used for other capital projects of the City. Section 9: OPERATING RESERVE' ACCOUNT There is hereby created and shall be maintained by the Finance Director a fund known as the "City of Spokane Valley CenterPlace Operating Reserve Account" (herein called the "Operating Reserve Account "), into which shall be deposited (from funds other than proceeds of the T3onds), the sum of $100,000 on or before January 1, 2004. The City covenants to increase the balance of the Operatin^ Reserve Account to $300,000 by January 1, 2009. Moneys in the Oneratina Reserve Account shall be available for use in the payment of ex enses associated with CenterPlace including but not limited to o )eration and maintenance expenses, debt service and ca ital re airs. If the C makes a draw on the funds in the Operating Reserve Account, it shall at the same time file a plan for the replenishment of the funds withdrawn. The City covenants to use all reasonable efforts to follow such a plan for replenishment. Section 4410: PROVISION FOR DEFEASANCE OF THE BONDS In the event that money and/or direct obligations of, or obligations guaranteed by the United States (hereinafter referred to as "government obligations ") as provided by Section 39.53 RCW, as it now reads or is hereafter amended, maturing or having guaranteed redemption prices, at such time or times and bearing interest to be earned thereon in such amounts as are sufficient (together with any resulting cash balances) to redeem and retire part or all of the Bonds in accordance with their terms, are hereafter irrevocably set aside in a special account and pledged to effect such redemption and retirement, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for and such Bonds shall then cease to be entitled to any lien, benefit or security of this Ordinance, except the right to receive the funds so set aside and pledged, and such Bonds shall no longer be deemed to be outstanding hereunder. Section -1411: EXECUTION OF THE BONDS Without unreasonable delay the City shall cause the Bonds to be prepared, executed and delivered, which Bonds shall be typed, lithographed or printed with steel engraved or lithographed borders. Each Bond shall be executed on behalf of the City by the Mayor and shall be attested by the Clerk (both of which signatures shall be by manual signature). Each Bond shall be substantially in the form as set forth in Exhibit "A" attached hereto and made a part hereof. The Bonds shall then be delivered to the Registrar for registration and delivery. Only such Bonds as shall bear thereon a Registration Certificate in the form hereinafter recited, manually executed by the Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Ordinance, and such Registration Certificate shall be conclusive evidence that the Bonds so registered have been duly executed and delivered hereunder and are entitled to the benefits of this Ordinance. Section 4312: SALE OF BONDS The City hereby authorizes and approves the sale of the Bonds to Lehman Brothers, of Seattle, Washington, in accordance with the terms and conditions set forth in the Bond Purchase Contract. The City hereby delegates to the City Manager the authority to execute the Bond Purchase Contract on behalf of the City in substantially the form filed with the City, subject to the following limitations: (a) The principal amount of the Bonds does not exceed $9 430,000; (b) The interest rate on the Bonds does not exceed a total interest cost (TIC) of %; () The Bond Purchase Contract is reviewed and a roved by the Financial Advisor for the Ciro; and (d) The Bond Purchase Contract is executed prior to November 5. 2003 and the closing of the Bonds shall occur on or before November 26, 2003, The City Manager is hereby authorized and directed to do all things necessary for the prompt execution and delivery of the Bonds and for the proper use and application of the proceeds of sale thereof. Section 143: TAX COVENANTS; SPECIAL DESIGNATION A. Tax Covenants: The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of such Bonds pursuant to Section 148 of the Code which will cause the Bonds to be "arbitrage bonds" within the meaning of said section and said regulations. The City will comply with the requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) throughout the terra of the Bonds. The City hereby further covenants that it will not take any action or permit any action to be taken that would cause the Bonds to constitute "private activity bonds" under Section 141 of the Code. B. Special Designation: The Bonds are hereby designated as "Qualified Tax Exempt Obligations" for purposes of Section 265(b) of the Code. The City does not expect to issue tax- exempt obligations in an aggregate principal amount in excess of $10,000,000 during the 2003 calendar year. Section 1M: PRELIMINARY OFFICIAL STATEMENT DECLARATION The Mayor is hereby authorized to execute a certificate deeming the preliminary official statement dated , 2003 "final" for purposes of Rule 15c2 -12 of the Securities and Exchange Commission and other certificates required by the securities laws of various states and the United States of America. Section 165: U'NDERTA TO PROVIDE ON -GOING DISCLOSURE gpeet= -to less- , Bends, q ,,�,�],,,, rtslOperating Data. t " ach Y t' 4 t h e SIT if- ny a - e Fe•'t�i�eEl -E$-£. el ''�e 9� @C- , y �-�O ttnnual-fmeneial-statetnents-prepthreel-iii-aeeefdfinee System by- the-Wttsrin ten- Stye- A4uditor pursuant to RCW 13.09498 -errd statements shall be £wail on- request 1 .. t h e „ : oft, e-Gity-F-' -e±ruent addreas- fef-whom -is 1 0 7-East- Sprague -A -ve:. . - :. ... .. ^a1 b o 99206, telephone number: (509) 921- 4-0807 (e) e riit E S he City agrees to p t1e- er- eause- te-be- providedrpn a timely i me 0 . 1 1 nSI t e-thc -i •f C'D D not i c ,, o f e oeee once of any e f th wi.ng- events with .respect to the Bonds; i T. a • Principal -and- interest aayn ea de fies; •Nets -pay - ielatcd 'lam •l eheduled- dr- aws--on debt -sere °ice r. efect i -fi •Sub:titu ion - -o - cr-edi-t- et- Iiguit•i•ty providersrer their failure to perform; o .Ad eefsc-tax opinieEt; a f - o f t h e B o f i • ^ °aie he- fights of Bond owner3; •Bend gills (optienal -eontin cnt or unscheduled 'Bond calls other that hedtded sinking fund redemptions for which lie •s given purstittat Exchu• t •14cfcasancc3; •Releases s ihtt toti- en-or sale of property, securing i Bent- of-the- Bonfis; and *Rating- eyes: Solely for . :. .. 4-not-i-ntending-te-ifteilify-thi5-ufideftakingrthe-Gi4y advises that-no -e enlmnccmcnts, debt scrviee-feservcs or property sccurc payment of the Bends- (d) Tcrnin; .. - ity's - e u oticcs of material everts shall ten inatc upon-the legal defeasanc r'ier -r lej-ttion -e -- ; f-a•14_of -the Bonds. Any - provision- oFrhis-sectioi - 13 l e- Hull- and- void-i-f- the City (1) obtaii3s- an-opittion-ef e , i -tv-t e-c-f et hat ..f th v ule- fbttt-rcquires that tt9-been-tee - } • • • • - (-�n a t. wm r S t o , d the SID, if-any- of-suieh-epinion -anc =the l l t o of this seetier -Fbe City may amend this see i ,rappreving-opianion -e' lf-y-r ben h th n ,1 c .. ., n- irrezccrr� 2. The assessed valuation of taxable property in the Citv: - 13 - (c) Bond- QOvncr nder- This- Scctiot27 ` e right of any -borr ef-er- be vial - owner- ofEends-to enforce the- pr-oN4sioas- ef4his-section-& 1i be limited te Fight to • ebtainspecific etforeeF . ' - - • %tioris- txider- t1. ... .. . -, =ilurc by the c - t :1 m , i a l •, of bo e\ eet f -d�ith C�tV-t, -'li`t°tl3- Cli' res 'rii- o-�-casun�rtcii'g ,•" respect to the - 3 3onds. roi- pttipascs -ef- this -sect ben ewnei me erson- who -1°�as the power; - ireed-y-ef-inc - - . -- .•.eat with respeet to, or to dispose -ef ownership of, ftny-B - . . - o . " ; . ii cs depesi•tori-es: (a) Contract/Undertaking. This section constitutes the City's written undertaking for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule. (b) Financial Statements /Qper Data The City agrees to provide or cause to be provided to each is Ri\1S1R and to the STD, if any. in each case as designated by the SEC in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2004 for the fiscal year ended :December 31. 2003): 1. Annual financial statements, which statements may or may not be audited showing ending fund balances for the City's general field prepared in accordance with the Budaeting Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200(or any successor statute) and generally of the tyj included in the official statement for the Bonds under the heading "Budgeting." 3. Ad valorem taxes duc and percentage of taxes collected: 4. Property tax levy rate per $1.000 of assessed valuation and 5. Outstanding general obligation debt of the City. Items 2 -5 shall be required only to the extent that such information is not included in the annual financial statements. The information and data described above shall be provided on or before nine months after the end of the City's fiscal year. The City's current fiscal year ends December 31: The City may adjust such fiscal ear b srovidin • written notice of the chan e of fiscal ear to each then existing NRMSIR and the SID, Kam In lieu of providin such annual financial information and operatin data, the City may cross - reference to other documents provided to the NRMSTR, the SID or to the SEC and, if such document is a final official statement within the meaning of the Rule, available. from the MSRB. if not provided as part of the annual financial information discussed above. the City shall Rrovide the City's audited annual financial statement prepared in accordance with the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 and RCW 43.09.200 (or any successor statutes) when and if available to each then existing NRMSIR and the SID, if any. c Material Events. The Cit aaees to rovide or cause to be •rovided. in a time' manner, to the SID, if any. and to each NRMSIR or to the MSRB notice of the occurrence of any of the following events with respect to the Bonds. if m aterial: • Principal and interest payment delinquencies; • Non - payment related defaults: • Unscheduled draws on debt service reserves reflecting financial difficulties; • Unscheduled draws on credit enhancements reflecting financial difficulties: • Substitution of credit or liquidity providers, or their failure to perform • Adverse tax opinions or events affecting the tax - exempt status of the Bonds; • Modifications to the rights of Bond owners; • Bond calls (optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34- 23856): • Defeasances; • Release substitution or sale of .ro.erty securinu re.a fluent of the Bonds and • Rating changes. Solely for purposes of disclosure. and not intending to modify this undertaking_, the City advises that no debt service reserves or property secure payment of the Bonds. (d) Notification Upon Failure to Provide Financial Data The City agrees to provide or cause to be provided. in a timely manner. to each NRMSTR or to the MSRB and t� the SID. if .. 1 tiny, notice ofits failure to provide the annual financial information described in Subsection (b) above on or prior to the date set forth in Subsection (b) above. (e) Termination/Modification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance. prior redem.tion or avment in full of all of the Bonds. Any rovision of this section shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that the portion of the Rule that requires that provision is invalid. has been repealed retroactively or otherwise• does not apply to the Bonds and (2) notifies each NRNISIR and the SID. if any, of such opinion and the cancellation of this section. The City may amend this section with an opinion of nationally reco mized bond counsel in accordance with the Rule. In the event of any amendment of this section. the City shall describe such amendment in the next annual report. and shall include, a narrative explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting . rinci les on the .resentation of financial information or o erating data beino )resentee] by the City. In addition. if the amendment relates to the accountingprinciples to be followed in preparing financial statements i notice of such chan e shall be iven in the satne manner as for a material event under Subsection (c), and (ii) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative fonn) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (f) Bond Owner's .Remedies Under This Section. The right of any bondowner or beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of. the City's obligations under this section, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds. For purposes of this section. "beneficial owner" means any person who has the power. directly or indirectly, to vote or consent with respect to. or to dispose of ownership of. any Bonds, including persons holding Bonds through nominees or depositories. Section 146: BOND INSURANCE The City has determined to purchase Bond Insurance for all or part of the Bonds. The City Council hereby approves the commitments of to provide a bond insurance policy guaranteeing the payment when due of principal of and interest on the Bonds (the "Bond Insurance Policy') and authorizes and directs all proper officers, agents, attorneys and employees of the City to cooperate with in preparing such additional agreements, certificates, and other docuumentation on behalf of the City as shall be necessary or advisable in providing for the Bond Insurance Policy. Section 187: SEVERABILITY If any one or more of the covenants or agreements provided in this Ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this Ordinance and shall in no way affect the validity of the other provisions of this Ordinance or of the Bonds. All actions (not inconsistent with the provisions of this Ordinance) heretofore taken by the City, and its employees, with respect to the Acquisition of the Improvements, and the issuance, sale and delivery of the Bonds, are hereby in all respects ratified, approved, and confirmed. All ordinances, ordinances, or parts thereof in conflict herewith, to the extent of such conflict, are hereby repealed. This Ordinance shall be in effect from and after its adoption and publication of the title hereof, substantially in the form attached hereto as Exhibit "A ", incorporated herein by reference. PASSED AND ADOPTED with a roll call vote by the City Council of the City of Spokane Valley, Spokane County Washington, this 28 day of October, 2003. ATTEST: (SEAL) Section 198: RATIFICATION Section 1019: REPEALER Section 141.20: EFFECTIVE DATE FIRST READING: October. 14, 2003. SECOND READING: October 28, 2003. City Clerk CITY OF SPOKANE VALLEY, Spokane County, Washington Mayor CERTIFICATION I, the undersigned City Clerk of the City of Spokane Valley, of Spokane County, Washington, HEREBY CERTIFY that the foregoing Ordinance is a full, true and correct copy of an Ordinance duly adopted at a regular meeting of the City Council of said City, duly and regularly held at the regular meeting place thereof on October 28, 2003 of which meeting all members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Ordinance was adopted by the following vote: AYES, and in favor thereof, Councilmembers: NOES, Councilmembers: ABSENT, Councilmembers: ABSTAIN, Councilmembers: I FURTHER CERTIFY that 1 have carefully compared the same with the original Ordinance on file and of record in my office; that said Ordinance is a full, true and correct copy of the original. Ordinance adopted at said meeting; and that said Ordinance has not been amended, modified or rescinded since the date of its adoption, and is now in full force and effect. IN WITNESS WHEREOF, I have set my hand and affixed the official seal of said City on October 28, 2003. (SEAL) CITY OF SPOKANE VALLEY - 17 - City Clerk [Form of Bonds] No. $ See Reverse Side for Additional Provisions EXHIBIT "A" - Page 1 Principal Amount UNITED STATES OF AMERICA STATE OF WASHINGTON COUNTY OF SPOKANE CITY OF SPOKANE VALLEY LIMITED TAX GENERAL OBLIGATION BOND, 2003 (The City has designated the Bonds of this Series as "Qualified Tax - Exempt Obligations ") Interest Rate Maturity Date CEDE & CO. The CITY OF SPOKANE VALLEY, of Spokane County, Washington, (the "City "), a duly incorporated and existing city under and by virtue of the laws of the State of Washington, hereby acknowledges itself indebted and for value received promises to pay to on or before the Maturity Date indicated above, the principal sum set forth above, and to pay interest thereon from the City of Spokane Valley Limited Tax General Obligation Bond Fund from November , 2003, or the most recent date to which interest has been paid or duly provided for, at the rate per annum specified above, payable at maturity or any date of prior redemption of the Bonds. Interest shall be calculated on the basis of a 360 -day year. Both principal of and interest on this Bonds are payable in lawful money of the United States of America. For so long as the Bonds of this issue is in fully immobilized form, payment of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Letter of Representations from the City to The Depository Trust Company. In the event that the Bonds of this issue are no longer in fully immobilized form, both principal and interest on this Bonds shall be paid by check or draft mailed to the Registered Owner at the address appearing on the Bond Register on the first day of the month preceding the maturity date, upon presentation and surrender of this Bonds by the Registered Owner at the principal office of the Bond Registrar. Reference is hereby made to additional provisions of this Bonds set forth on the reverse side hereof and such additional provisions shall for all purposes have the same effect as if set forth in this space. This I3onds shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. IT 1S HEREBY CERTIFIED AND DECLARED that this Bonds is issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and ordinances and resolutions of the City, specifically the Ordinance No. of the City, adopted on October 28, 2003, (the "Bond Ordinance "), and that all acts, conditions and things rewired to be done precedent to and in the issuance of this Bonds have happened, been done and performed. IN WITNESS WHEREOF, the City has caused this Bonds to be executed by the manual signature of its Mayor, and attested by the manual signature of its Clerk, with the official seal of the City impressed hereon this day of November, 2003. A I'1`FST: (SEAL) City Clerk EXIIIBJT "A" - Page 2 [Manual Sinnature] CITY OF SPOKANE VALLEY, Spokane County, Washington [ Reverse Side of Bonds ] ADDITIONAL PROVISIONS [Manual Sianaturel Mayor This Bond is issued pursuant to and in full compliance with the Constitution and laws of the State of Washington, particularly the and also pursuant to all proceedings duly adopted and authorized by the City, more particularly the Bond Ordinance. Capitalized terms used herein shall have the meanings given to them by the Bond Ordinance. The City has reserved the right and option to redeem and call the Bonds maturing on and after December 1, 20_ at any time on or after December 1, 20 , in whole or in part (maturities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar or DTC shall determine), at the price of par plus accrued interest, if any, to the date of redemption. Unless waived by the Registered Owner of any Bonds to be redeemed, notice of any such redemption will be given not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption by first -class mail, postage prepaid, to the address appearing on the Bond Register. The Bonds are issued by the City in the aggregate principal amount of not to exceed 1 $9 for the purpose of constructing, acquiring and equipping City facilities. To provide for the payment of the Bonds, the City has pledged its full faith and credit for the payment of the Bonds, within the appropriate Constitutional and statutory limitations pertaining to non -voted general obligations. The City shall make annual tax levies upon all of the taxable property within the City sufficient, together with other legally available funds, to meet the payments of principal and interest maturing and accruing as set forth herein, having always in mind the Constitutional and statutory tax limitations pertaining to non -voted general obligations. Reference is hereby made to the Bond Ordinance for a description of the covenants and conditions under which this Bond is issued. The City hereby covenants and agrees with the Registered Owner of this Bond that it will keep and perform all of the covenants of this Bond and of the Bond Ordinance to be kept and performed by the City. This Bond is transferable by the Registered Owner hereof in person, or by his attorney duly authorized in writing, upon presentation and surrender of this Bond at the principal office of the Registrar. Upon such transfer, a new fully registered Bond of the same denomination, maturity and interest rate will be issued to the transferee, in exchange therefor. Date of Authentication: EXHIBIT "A" - Page 3 LEGAL OPINION I, the undersigned City Clerk of the City of Spokane Valley, of Spokane County, Washington, DO HEREBY CERTIFY that the legal opinion of Preston Gates & Ellis LLP, of Seattle, Washington, which opinion was dated the date of delivery of the Bonds described therein, was delivered to me on said date, and is now part ofthe permanent records of the City. CITY OF SPOKANE VALLEY, Spokane County, Washington anual Signature Clerk CERTIFICATE OF AUTHENTICATION This Bond is one of the City of Spokane Valley General Obligation Bonds, 2003, dated as of November , 2003, and described in the within- mentioned Bond Ordinance. WASHINGTON STATE FISCAL AGENCY, as Bond Registrar By [manual signature] Authorized Officer [Summary for Publication] CITY OF SPOKANE VALLEY Spokane County, Washington GENERAL OBLIGATION BONDS - $x+009,430,000 The Title of Ordinance No. , adopted by the City Council of the City of Spokane Valley on October 28, 2003, is as follows: AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, OF SPOKANE COUNTY, WASHINGTON, PROVIDING FOR TfrE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,430,000 IN ORDER TO OBTAIN FUNDS TO PAY PA=RT OF THE COSTS OF ACQUISITION AND CONSTRUCTION OF A REGIONAL CENTER AND RELATED CAPITAL FACILITIES; PROVIDING FOR THE SALE OF THE BONDS TO LEHMAN BROTHERS, OF SEATTLE, WASHINGTON; PROVIDING FOR THE REGISTRATION OF SAID BONDS; CREATING CERTAIN FUNDS FOR SAM BONDS; FIXLNG THE LNTEREST RATE, MATURITIES FORM, TERMS AND COVENANTS OF SAID BONDS; PROVIDING CERTAIN COVENANTS WITH RESPECT TO FEDERAL, TAX LAW; PROVIDING FOR THE PURCHASE OF MUNICIPAL BOND INSURANCE; PROVIDING CERTAL 1 COVENANTS WITH RESPECT TO ON- GOING DISCLOSURE; PROVIDING FOR THE EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO A copy of the entire Ordinance is on file with the City Clerk and available for review during normal office hours. ATTEST: (SEAL) EXHIBIT "B" - Page 1 City Clerk CITY OF SPOKANE VALLEY, Spokane County, Washington Mayor I, the undersigned bond counsel to the City of Spokane Valley, of Spokane County, Washington, hereby certify that I have read the attached Summary of Ordinance No. , and that the same is true and complete and provides adequate notice to the public of the contents of said Ordinance. DATED this 28 day of October, 2003. EXIBBTT "B" - Page 2 CERTIFICATION OF BOND COUNSEL By Michael C. Ormsby CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 14, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent X old business ❑ new business ❑ public hearing 0 information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Proposed Resolution 03 -049 Extending Annexation for One Year to Fire District Nos. 1, 8 and 9 GOVERNING LEGISLATION: RCW 52.04 provides for the establishment of fire services within newly incorporated cities. PREVIOUS COUNCIL ACTION TAKEN: In February 2003, Council passed Resolution 03 -016 directing staff to investigate and report on future fire protection services, including annexation for an additional year. At the September 23 Council study session, an initial discussion of fire service options took place. BACKGROUND: Residents are currently served by three Fire Districts. State law allows a newly formed city to annex into an existing fire district or districts for the year of incorporation. That temporary annexation may be extended for one additional year to give cities additional time to analyze the various fire service alternatives. A draft resolution is proposed to extend that temporary annexation through 2004. At the October 14 meeting, staff will also seek direction on post 2004 fire service options. Options include 1) annex into one or more Fire Districts; 2) contract with a Fire District (or other service provider); or 3) establish a City Fire Department. OPTIONS: Absent an adopted resolution to extend the annexation for one year, the City of Spokane Valley will be responsible for providing fire services effective January 1, 2004. RECOMMENDED ACTION OR MOTION: Move to approve Resolution 03 -049 Extend Annexation for One Year to Fire District Nos. 1, 8 and 9 BUDGET/FINANCIAL IMPACTS: Financial impact depends upon the service option chosen. The draft resolution to extend annexation for one year would have no financial effect on the City. STAFF CONTACT: Nina Regor, Deputy City Manager ATTACHMENTS 1. Draft Resolution to Continue to Receive Fire Protection Services A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, STATING THE INTENT OF THE CITY TO CONTINUE TO RECEIVE FIRE PROTECTION SERVICES FROM SPOKANE COUNTY FIRE DISTRICT NOS. 1, 8, AND 9. WHEREAS, pursuant to RCW 52.04.161, the City has received fire services in its first ycar of incorporation from the existing fire districts within the City's corporate limits; WHEREAS, RCW 52.041 61 further provides that a newly incorporated city may annex to the existing fire districts within the City's corporate limits for the year following incorporation; WHEREAS, Resolution 03 -016, adopted by the City Council February 11, 2003, directed the City Manager to contact Spokane County Fire Districts 1, 8, and 9 to investigate and report on future fire protection services, including annexation for an additional year; WHEREAS, the City Manager has conducted said investigation, and recommends annexing to Spokane County Fire Districts 1, 8, and 9 for 2004; and WHEREAS, the City Council is desirous of being annexed by Spokane County Fire Districts 1, 8, and 9 for 2004. NOW THEREFORE be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: Section 1. Intent to Annex. In order to continue to receive fire protection, fire prevention, fire suppression, emergency medical, and hazardous material incident response, it is hereby declared that the City of Spokane Valley shall be deemed annexed to Spokane County Fire Districts 1, 8, and 9 for 2004. Section 2. Notification to Boards of Commissioners. The City Clerk shall send a copy of this Resolution to the Boards of Commissioners for Spokane County Fire Districts 1, 8, and 9. Section 3. Effective Date. This Resolution shall be in full force and effect upon adoption of a resolution by each participating Fire District, but no later than December 31, 2003. Attest: Adopted this day of October, 2003. City Clerk, Christine Bainbridge Approved as to Form: Deputy City Attorney, Cary P. Driskell CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 03 -049 H:\ cb3inbridge kResalu1inns\resolution 03.049 extending tire for 2004 for 10- 14- 03.DOC City of Spokane Valley Mayor Michael DeVleming Meeting Date: 10 -14 -03 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information AGENDA ITEM TITLE : Motion Consideration: Clarification of Intent and Reaffirmation of Planning Commission Appointments. GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: According to Spokane Valley Ordinance 35, Planning Commission terms shall expire on the thirty -first (31) day of December. Clarification is needed if year 2003 or 2004 was intended as the first expiration date. OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET /FINANCIAL IMPACTS: STAFF CONTACT: Stanley Schwartz CITY OF SPOKANE VALLEY Request for Council Action 0 admin. report ❑ pending legislation ATTACHMENTS 1. Copy of Council Minutes of April 15, 2003 appointing Planning Commission Members 2. Copy of Ordinance 35 Creating a Planning Commission and Establishing the Duties Thereof City of Spokane Valley City Council Study Session Notes April 15, 2003 • Mayor Michael DeVleming opened the Study Session at 6:00 p.m. Councilmembers present: Mayor Michael DeVleming, Deputy Mayor Diana Wilhite, Councilmembers Dick Denenny, Mike Flanigan, Richard Munson, Gary Schimmels and Steve Taylor. Staff present: Interim Manager Lee Walton, Interim Attorney Stanley Schwartz, Interim Deputy Manager Stan McNutt, Interim Finance Director Robert Noack, Interim Public Works Director Richard Warren, Interim City Engineer Dick Thiel, Interim Parks and Recreation Consultant Bill Hutsinpiller, Interim Recreation Coordinator Shelley Goss, and Interim City Clerk Ruth Muller. Planning Commission Appointments: Deputy Mayor Wilhite moved and Councilmember Denennv seconded that Plannin• Commission a. ointments be approved as follows: William Gothmann - three -year term Ian Robertson - three -year term John Carroll - three -year term Fred Beaulac - two -year term David Crosby — one -year term Gail Kogle — two -year term Robert Blum — one -year term Councilmember Taylor moved and Mayor DeVleming seconded to amend the motion to add one additional individual for the Committee to consider, Lewis Rumpler. Councilmember Taylor said that Mr. Rumpler is a Spokane Valley resident, and presently serves as Vice -Chair for the Spokane County Planning Commission. He feels that our City should take advantage of the experience Mr. Rumpler can bring to this Commission and it does not appear that there would be any conflict to serve on the two Commissions. Councilmember Flanigan said that their could definitely be a conflict as Spokane Valley begins to work on its Comprehensive Plan and may consider re- drawing the Urban Growth Areas for the City. Councilmember Denenny said that even though there may be no true conflict, he does have a problem with one individual serving on two Commissions in the same area. The motion to amend adding Lewis Rumpler to the submitted list failed with one aye vote — Councilmember Taylor; and six nay votes — Mayor DeVleming, Deputy Mayor Wilhite, Councilmembers Denenny. Flanigan.. Munson, and Schimmels. Mayor DeVleming introduced the seven individuals nominated for serving on the Planning Commission. The notion to approve Planning Commission members as submitted carried unanimously. Study Session Notes, April 15, 2003 Council Approved; May 27, 2003 1 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 35 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, CREATINiG A PLANNING COMMISSION AND ESTABLISHING THE DUTIES THEREOF. \VHEREAS, the City of Spokane Valley is a non - charter code city authorized to create a Planning Commission which will serve in an advisory capacity to the City Council; 'WHEREAS, the City will adopt a Comprehensive Plan and Development Regulations to guide the reasonable and orderly development of the City; WREA.S, the City Council wishes to respond to the expressed concerns of citizens that immediately after incorporation the City begin a comprehensive planning process and review of development regulations; and WHEREAS, the City of Spokane Valley desires to encourage citizen input into the planning process by establishing a Planning Commission which will study, receive public input and recommend a Comprehensive Plan and Development Regulations to the City Council for review and adoption. NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, do ordain as follows: Section 1. Establishment and Purpose. There is created the City of Spokane Valley Planning Commission. The purpose of the Planning Commission is to study and make recommendations to the Mayor and City Council for future planned growth through continued review of the City's comprehensive land use plan, development regulations, shoreline management, environmental protection, public facilities, capital improvements and other matters as directed by the City Council. Section 2. Membership. 1. Qualifications: The membership of the Planning Commission shall consist of individuals who have an interest in planning, land use, transportation, capital infrastructure and building and landscape design as evidenced by training, experience or interest in the City of Spokane Valley. 2. Appointment: Members of the Planning Commission shall be nominated by the Mayor and confirmed by a majority vote of at least four (4) members of the City Council. Planning Commissioners shall be selected without respect to political affiliations and shall serve without compensation. The Mayor, when considering appointments, shall attempt to select residents that represent various interests and locations within the City. 3. Number of Members/Terms: The Planning Commission shall consist of seven (7) members. All members shall reside within the City of Spokane Valley. The terms for the initial Commissioners shall be two (2) one (1) year terms, two (2) two (2) year terms and three (3) three (3) year terms. The initial members and their terms shall be decided by C:1Documents and SettineA n ullcrlLocal Settings \Temporary Internet FilcsIOLKI Ilordinane No. 351.doc the Mayor and confirmed. by the City Council. Subsequent terms shall be for a three (3) year period. Teens shall expire on the thirty -first day of December. 4. Removal. Members of the Cor.ornission may be removed by the Flavor, with the concurrence of the City Council, for neglect of duty, conflict of interest, malfeasance in of or other just cause, or for unexcused absence from three (3) consecutive regular meetings. Failure to qualify as to residency shall constitute a forfeiture of office.. The decision of the City Council regarding membership on the Planning Commission shall be final and without appeal, 5, Vacancies. Vacancies occurring other than tluough the expiration of terms shall be filled for the unexpired term in the same miner as for appointments 6. Conflicts of Interest. Members of the Planning Commission shall fully comply with RCW 42,23, Code of Ethics for Municipal Officers, RCW 42.36, Appearance of Fairness, and such other rules and regulations as may be adopted from time to tune by the City Council regulating the conduct of any person holding appointive office within the City. No elected official or City employee may be a member of Planning Commission. Secti 3. Meetings- Rul 1. The Planning Commission shall every second year organize and elect from its members a Chair, who shall preside at all meetings of the Commission and perform such other functions as dete, 4nincd by rule. A Vice- Chair shall be elected to preside- in the absence of the Chair- A majority of the Corrunission members shall constitute a quorum for the transaction of business, and a majority vote of those present shall be necessary to carry any proposition. The Commission shall determine a regular meeting schedule (time, place and frequency) and shall meet, at least, one time every manth, All meetings shall be open to the public. • 3. The Commission shall adopt such rules and regulations as are necessary for the conduct of business and shall keep a taped record of its proceedings. Section 4. Staff Support. Administrative staff' to the Planning Commission shall be provided by the City Planning and Community Development Department. In addition, the Commission, through its Chair may request fonnal opinions or memorandums from the City Attorney or Planning and Community Development Director on any pending matter. Sectitin 5. Duties and Responsibilities. The Planning Commission, as an advisory body to the City Council, shall perform and have the following duties and responsibilities: 1. Assist in the preparation of a Comprehensive Plan and De •velopment Regulations in compliance with RCW 36.70A and 35A.63 including the establishment of procedures for early and continuous public participation in the development and amendment of the Corriprehensive Plan and the Development Regulations 2. Review plans and regulations related to lan.d use management, shoreline management, environmental policy, transportation systems, public facilities and capital infrastructure planning and development; 3. Upon request from the City Manager or City Council, review C;1E]ocumeri ,rd 5:itingsU rmill u1Goc11 Satin es \Temporary 1nturict Fi]cs \OT..K 1 1 %Ord i nice Na- 351.doc potential annexations to the City; 4. Where design review is required by land use ordinances of the City, perform such design review unless that review is delegated to some other appointed body or City staff; 5. Identify issues and recommend pri.orities for geographic sub -areas including park and open space areas in the City; 6. Meet and confer with the Hearing Examiner to review the administration of land use policies and ordinances to enhance the planning and permitting process; 7, Make periodic written and oral reports to the City Council addressing work in progress and other significant matters relating to the City; . 8. Hold public hearings in the exercise of duties and responsibilities; 9. Perform such other duties and powers as may be conferred by ordinance, resolution or motion of the City Council. Unless otherwise assumed by the City Council, the Planning Commission sball hold all public hearings required to be held in the course of adoption or amendment to the Comprehensive Plan, the development regulations, adoption or amendment of the zoning map, or adoption or amendment of regulations for the subdivision of land. shoreline management, environmental regulations, and other land use ordinances of the City: Section 6. Severabi;lity. If any section, sentence, clause or phrase of this ordinance shall 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 7. Effective Date. This Ordinance shall be in full force and effect five (5) days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by lay. P.A.SE_.D by the City Council this day of Fruary, 003. ATT Interim City Clerk, Ruth Mu ler Mayor, Michael De C-,\Dneurrierris and Set[inedmuller \Lo a1 Sethi! es \Temporary Inferno Fi3esV T ..ICI P.Ordiriance No 35 k-doc CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 10 -14 -03 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business Cl public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Motion Consideration: Hotel /Motel Ratification of Tourism Allocations GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: It has been determined that funds previously allocated should be used for tourism marketing instead of facility development. Therefore, a new motion is necessary to ratify tourism allocations as previously approved by council motion September 9, 2003. OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET /FINANCIAL IMPACTS: STAFF CONTACT: Stanley Schwartz ATTACHMENTS Copy of minutes of council regular meeting of September 9, 2003 MJN UTES City of Spokane Valley City Council Regular Meeting September 9, 2003 Mayor DeVleming called the City of Spokane Valley Regular Meeting to order at 6100 p.m. After danw4: Couneilmembers: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Richard Munson, Councilmember Clary Schimrnels, Councilrnernhe.r Steve Taylor, Councilmember Staff Present: David Mercier, City Manager Nina Regor, .Deputy City Manager Stanley Schwartz, Interim City Attorney Cary Driske]l, Deputy City Attorney Ken Thompson, Finance Director Mike Jackson, Parks & Recreation Director Marina Sukup, Community Development Director Neil ):Gersten, Public Works Director Kevin Snyder. Current Planning Manager Tom Schaltens, Building Official Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk PLEDGE OF ALLEGIANCE Mayor DeVleming led the Pledge of Allegiance_ INVOCATION: Councilmember Rich Munson gave the invocation_ ROLL. CALL: City Clerk Bainbridge called roll. A PROVAL OF AC-ENDA: Mayor DeVleming said item 410 will be removed and discussed at a later date. /t was nerved by Counciimember Munson and seconded by .Deputy MOEJ or Wilhite w approve the agenda a . % amended, Vote by Acclamation: in Favor: Unanimous. Opposed: Non, Abstentions': None. Motion carried COMMITTEE BOARD LIAISON SIMMARY REPORTS: Deputy Mayor Wilhite reported that she attended a Freight Mobility Meeting with Senator Horn and others and heard a presentation on the roads being considered for the City of Spokane and City of Spokane Valley. Councilmernber Schimmels said he attended the Planning Commission several weeks ago at which time the Comprehensive Plan Amendments were discussed; that he also attended a Spokane Solid Waste Regional Meeting at which time it was announced that no rate increases are planned for 2004, and that the Transfer Station hours are to be extended. Cotlncilmelnber Denenny mentioned the Calgary tour he attended with the International Trade Alliance, the Economic Development Council, and the Visitor's Bureau. and that they had interactions with numerous tourism agencies; that the spent considerable time with the Calgary Mayor's office and their animal control facility, which was impressive, Councilmember Denenny also reminded Council that he will be absent from next Tuesday's council meeting_ Council M inu Le$ 09 -09 -03 PPge 1 .0 . 1.6 DM Approved by Council; 09 -23 -03 MAYOR'S REPO1111 Mayor DeVieming reminded everyone of the second "Conversation with the Community" set foe 6;30 p.m. September 17 81. the Central Park Condo Community Center, lvlayor DeVleming also reported that he signed a proclamation proclaiming the first week in September as National Payroll Week. Mayor De Vleming they read a Proclamation declaring the week of September 17 through 23 as Constitution week_ Mayor DeVleming also reiterated the Council's voice in the desire to be customer - friendly, and that he has received several comments on the success of that endeavor_ Proponents of initiative $41 have also requested Council time to present an overview of the initiative.. City Attorney Stanley Schwartz reminded Council that if proponents are to speak on the Initiative, there also must be time allotted For opponents to speak. PUBLIC COMMENT: Mayor DeVleming asked for public comment on matters not on the agenda. AT.A, .13rown, lives in a mobile home park on the east side of Barker, just north of the river; discussed several tenant issues connected with a site at the park_ City M nager Mercier said staff will report back to council in two weeks concerning this matter. Philip Rude, 20720 E..Fraithill: said he had occasion to come to the.Building and Planning division of the City, that he uoniinends staff for helping him in a very courteous and efficient manner; and that he has also heard positive remarks from others concerning our permitting process; and he thanked staff and council, PUBLIC ll'EARING : Proposed Budget Amendment amending Ordinance 62. the City Budget adopted for the period of March 31, 2003 through .December 31, 2003. Mayor DeVleming opened the public hearing at 6;20 p.m. and asked for staff presentation. Finance Director Ken Thompson explained the ordinance and accompanying exhibit, and that since the last council meeting, per Council's direction, an additional $5,000 was included in this year's budget for Project Access_ 1ayor ]DeVleming invited public comment. None being received, Mayor DeVleming closecl the public hearing at 6:23 p.m. [Mr. N.A. Brown inadvertently signed up for public comment on this subject, rather than on the general public comment sheet.] CONSENT AGENDA: After City Clerk Bainbridge read the Consent Agenda, it was moved by Cowwilmeinber Taylor and seconded by Councilmen Dentelrny to approve the Consent Agenda. Prior to that vote, Mayor De lerning moved to remove Consent Item #lc to be discussed separately- Vote by acclamation on removal of tiIc:.In Favor: Unanimous. Opposed: None, Abstentions: None. Motion carried. Voce by acclamation on amended Consent Agenda: In Favor; Unanimous. Opposed: None, .Abstentions: None. Motion carried, In discussing item ff1c, Council wants to make sure the goals stated are not in priority order, and that the wording on item 2.3 be changed from "Develop a Transportation Master Plan" to ".Develop a Street Master Plan." It was moved by Mayor DeF eming and seconded by Lounellrrten:ber Deuenny, to appraloe the 2004 Budget Goals TvitJi the change as noted above, Vote by Acclamation ran Consent Agenda Item tile: In Favor: uncut/Hums. Opposed: None. Abstentions: None. Motion carried NI W BUSINESS: 2. Ordinance No. 03-080 Authorizing lntc.rlocal Agreement with Public Facilities District — Second Reading. City Clerk Bainbridge read the title to Ordinance No. 03 -080. It was then moved by Mayor DeVleming and seconded by Counellmetttber .Denet ro approve Ordinance No, O3 -08(2. In discussing the ordinance, Attorney Ormsby referred to the accompanying letter referring to the exit strategy, mentioning . that we do not want an chit strategy with the Public Facilities District as the PFD is agreeing to remit a certain amount of money each year. Mayor DeVleming then invited public comment. Council Minutes 09.49 -03 pale Approved by Council: 09 -23.03 1( 6; 1 Pair 2 of Tony Lazanis, 10626 E. Trent: spoke about the senior center, asked who is going to run the facility, and asked about the reserves from the convention center. Couneilmember Munson mentioned that the Public Facilities District is only acting as a conduit for funds and will not have any ownership or control of the facility. Councilmembers voiced their appreciation to staff regarding this issue. Vote by acclamation on the ordinance approval: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 3. Ordinance No. 03 -079 Budget Amendment Ordinance — First Reading. City Clerk )Bainbridge read the title to Ordinance No. 03 -079. It was moved by Councilmember Munson and seconded by Councilmember Denenny to suspend the rules and advance this to a second reading. Vote by Acclamation: In Favor: Councilmembers Wilhite, Taylor, Schimntels, Munson, Flanigan, Denenny. Opposed: Mayor DeVlerning. Motion carried to suspend the rules and advance this to a second reading. Mayor DeVlerning invited public comment. None was given. 11 was moved by Councilmember Munson and seconded by Councilmember Denenny to adopt ordinance No. 03 -079, budget amendment. In Favor: Unanimous. Opposed: None. A. bstentions: None. Motion carried. 4. Motion to Consider Hotel /Motel Lodging Tax Advisory Committee Recommendation. It was moved by Councilmember Munson and seconded by Councilmember Denenny to commend the efforts of the Spokane Valley Hotel/Motel Tax Advisory Committee for a job very well done under very difficult circumstances in bringing to us a balance of both advertising and event funding; and further move that the allocation of the funds be as follows: Spokane Visitor Convention Bureau 583,700 of which 510,000 is to be used specifically for the development in placing of an ad for the City of Spokane Valley in the Washington State Tourism Guide that will list all hoteliers regardless of size residing in the City of Spokane Valley; Valleyfest: 52,800; YMCA Skateboard Park 518,000; Valley Soccer Concession Stand 524,800; Fair and Expo Marketing 517,500; Regional Sports Commission 552,200; Valley Legacy Foundation 51,000. The. Mayor and each council member then thanked the Committee for their hard word. Mayor DeVlerning invited public comment. Terry Lynch, Valley resident, and Past President of the State Hotel Association: commended council for conclusion of a great compromise; spoke of the need to do a future survey to discover potential of bringing in people from regional areas. Curt Carlson, Sports USA: said the Sports USA will be opening January 2004 and said the event will bring an estimated 1.6 million people in one year. Richard Beam, 3626 S.'Ridgeview: said he has been a member of the Chamber of Commerce for 53 years and worked on numerous committees; spoke of the history, growth and potential expansion of Valley Days and Valleyfest; he asked if any unanticipated funds are received by the City to allocate those funds to Val Ieyfest. Kevin Clear, Food Services of America: said the allocation of funds must be measurable and identifiable and the entities should be able to show what their impact will be to the region. Tony Lazanis: supports the recommendation fully; feels the Bureau does very little for the Valley; feels we should erect the 1,000 -seat facility to bring large events to this area. Council Minutes 09.09.03 Date Approved by Council: 09 -23 -03 COPY Page 3 of 6 Deedee Loberg, 18306 E. 4 Ave., Greenacres: spoke on behalf of the Committee of Hotel Motel Lodging Tax; also co -chair of Spokane Arts &. Culture; asked for further consideration of the proposal of Valleyfest as it is a regional attraction. Nora Louder, Board of Spokane Valley Heritage Museum: thanked the council for the consideration of funds; and said her group is prepared to create a museum that will put "heads in beds." HarrySladedge, 8923 E. Mission: thanked council for their consideration; that the hoteliers understand this is done and that they will work to the best of their ability to work with this; that they are the only ones who know what does and doesn't work, and are the only ones who track why people come; and they will inform council of that information; and asked Council to look at the hoteliers as a business. Mayor DeVleming asked for further public input. None being offered, Mayor Deveming asked City Clerk Bainbridge to re -read the motion. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Mayor DeVleming called for a recess at 7:25 p.m. Mayor DeVleming reconvened the meeting at 7:40 p.m. 5. Ordinance No. 03 -078 Zoning Code Compliance— Second Reading. After City Clerk Bainbridge read the ordinance title it was proved by Mayor DeVleming and seconded by Councilmember Denenny to approve ordinance 03 -078. Attorney Driskell gave a brief overview of the ordinance explaining the abatement and violation sections. Mayor DeVleming invited public comment. None was offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 6. Ordinance No. 03 -081 Hearing Examiner Ordinance — First Reading. After City Clerk Bainbridge read the ordinance title, it was moved by Councihnember Munson and seconded by Counci /member Flanigan to suspend the rules and advance this to a second reading. Attorney Schwartz explained the purpose of this ordinance is so Council can avoid as much appellant work as possible and that certain actions such as preliminary plats will be heard at the Superior Court level. Vote by Acclamation: In Favor: Councilnmen:hers Flanigan, Munson and Schimmels; Opposed: Mayor DeVleming, Deputy Mayor Wilhite, Councidmembers Taylor and . Denenny. Motion defeated. It was then moved by Mayor DeVleming and seconded by Councilmember Munson to give Ordinance 03 -081 a first reading, and advance it to second reading on September 23, 2003. Mayor DeVleming invited public comment. None was offered. Vote by acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 7. Ordinance No. 03 -067 Junk Vehicle Ordinance — First Reading. After City Clerk Bainbridge read the ordinance title, it was moved by Councilmen:her Denemzy and seconded by Mayor DeVleming to give this ordinance a first reading, and advance it to second reading at the September 23, 2003 council meeting. Attorney Driskell gave an overview of the ordinance, and directed Council attention to the two pages of Attachment A which represents the amendments in the Zoning Code. Mayor DeVleming invited public comment. Beverly Craig, Valley resident: asked for reconsideration of the landscaping requirements, as she would like to see the landscaping removed and have fencing required; although she would accept Type 1 with fence and trees. Dave Gilbert, 6 and Progress: concerned that the City might want to abate someone a little too quick for the State; and will bring further information at the next meeting. Attorney Driskell added that Mr. Gilbert brought the abatement matter to Driskell's attention, and that Attorney Driskell will speak to the Department of Licensing to ascertain if that is an issue; but that he has not seen that as an issue in other municipalities; feels this will not be a problem as people are not voluntarily Council Minntes 09.09 -03 Dore Approved by Council: 09 -23 -03 COPY Pine 4 of 6 Meeting Date: October 14, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation AGENDA ITEM TITLE : Community Development Block Grant— Proposed Projects GOVERNING LEGISLATION: Federal Housing and Community Development (HUD) Department PREVIOUS COUNCIL ACTION TAKEN: Earlier this year, City Council took action to participate in the Spokane County CDBG Consortium. As a member of the CDBG Consortium the City has the ability to apply for CDBG funds BACKGROUND: CITY OF SPOKANE VALLEY Request for Council Action Spokane County estimates that the CDBG program will have approximately $1,800,000 in funds to allocate in 2004. There are statutory limits on the administration and planning allocation of 20% of new funds, which is approximately $320,000 maximum. A majority of these funds are used by the County to cover the expenses of administering the CDBG program on a county -wide basis. Also limited by statute is the human service allocation at 15% of 2004 available funds or approximately $240,000. The County has indicated that it will typically receive requests for funding that is two to three times the amount of the available funding. City staff proposes to apply for funding to aid in the development of the Housing and Economic Development Elements of the City's comprehensive plan. The planning related funds are limited as specified above. Further, city staff proposes to apply for funding related to project costs associated with sanitary sewer projects scheduled for next year. These funds would be used to cover the cost of repaving streets in identified low and moderate income areas according to HUD guidelines. The City is required to conduct a public hearing on the proposed CDBG applications, which has been schedule for October 28 OPTIONS: Direct staff to consider other projects that meet HUD guidelines for CDBG funding. RECOMMENDED ACTION OR MOTION: Conduct scheduled public hearing on October 28 after which direct staff to prepare applications eligible for CDBG funding. BUDGET /FINANCIAL IMPACTS: If the City is successful in the CDBG applications, this action would result in a positive financial impact for the City and its residents. STAFF CONTACT: Greg McCormick, AICP Long Range Planning Manager ATTACHMENTS None CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing xx information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Draft Interlocal Agreement for Commute Trip Reduction Program GOVERNING LEGISLATION: RCW 70.94 PREVIOUS COUNCIL ACTION TAKEN: None BACKGROUND: RCW 70.94.524 -551 requires each jurisdiction within counties over 150,000 to adopt an ordinance and plan to reduce commute trips for large employers. Spokane County has been running such a program since 1993. Spokane County has approached us to ask if we would let them continue to operate the program, and in return, the County would receive the roughly $33,000 SV would receive from the State. That money is an allocation from the State that is intended to be a cost recovery for operating the program to avoid CTR being an unfunded mandate. If we were to operate the program internally, the funds would need to be used for CTR - related matters, and could not be simply placed in the general fund. One of the first issues staff looked at was whether we have to participate in the program. The answer is "absolutely yes." In addition, since we are a governmental agency responsible for administering a program, we as a city must also automatically become a participant and must comply with program requirements. Attached are several documents of interest, including a list of the affected businesses in Spokane Valley, printed materials from a powerpoint presentation, the draft iriterlocal agreement proposed by Spokane County, the model ordinance drafted by the Washington State CTR Task Force, and a list of the CTR services offered by Spokane County. Staff has no comment on the proposed interlocal agreement from Spokane County, other than Section 5. That provision states that the County would own any property acquired by the County with money passed through from the City to the County. Staff requests direction on that issue. The draft model ordinance is essentially what will be presented to the Council in the next week or so, and largely reflects RCW 70.94. OPTIONS: Operate a CTR program internally. RECOMMENDED ACTION OR MOTION: Move the CTR Ordinance and Resolution approving Interlocal Agreement on CTR to a first reading. BUDGET /FINANCIAL IMPACTS: Revenue neutral. STAFF CONTACT: Cary P. Driskell ATTACHMENTS: (1) draft resolution adopting CTR agreement with County; (2) list of affected SV employers; (3) CTR powerpoint presentation; (4) draft interlocal agreement; (5) model CTR ordinance; (6) list of CTR services offered by Spokane County. i RESOLUTION NO. 03- CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON A RESOLUTION ADOPTING COMMUTE TRIP REDUCTION INTO RLOCAL AGREEMENT WITH SPOKANE COUNTY. WHEREAS, RCW 70.94.527 requires Spokane Valley to comply with Washington State commute trip reduction requirements ; WHEREAS, it is the intent of Spokane Valley to comply with the requirements of RCW 70.94.524 -.551; WHEREAS, Spokane County currently manages a commute trip reduction program throughout Spokane County; and WHEREAS, Spokane Valley currently desires to contract with Spokane County for Spokane County to manage Spokane Valley's commute trip reduction program through the lnterlocal Cooperation Act. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County. Washington, as follows: The City Council hereby adopts the attached Commute Trip Reduction Intergovernmental Agreement. The City Clerk is directed to forward the attached Commute Trip Reduction Intergovernmental Agreement to Spokane County not more than 30 days after adoption of this Resolution. The Commute Trip Reduction Intergovernmental Agreement shall, at least, be annually reviewed for the purpose of determining the work accomplished under the program and the City requirements. ATTEST: Adopted this day of October, 2003. City Clerk, Christine Bainbridge Approved as to Form: Deputy City Attorney, Cary P. Driskell dcpd work files /commute trip reduction/resolution adopting aareernent 10 -9-03 City of Spokane Valley Mayor Michael DeVleming ''Vtroilksite '_. Juiisdict►on, " . Appleway Automotive Spokane Valley ASC Machine Tools, Inc Spokane Valley City of Spokane Valley Spokane Valley Columbia Lighting Spokane Valley Dakotah Direct II, LLC- Corporate Spokane Valley Honeywell Spokane Valley Huntwood Industries Spokane Valley Itron, Inc. Spokane Valley Itron, Inc. - Mirabeau Spokane Valley Kaiser Aluminum - Trentwood Works Spokane Valley Key Tronic Corporation -R & A Building Spokane Valley Key Tronic Corporation - SIP Building Spokane Valley SAFECO Insurance - Spokane Spokane Valley Servatron, Inc. Spokane Valley Spokane Industries Spokane Valley Valley Hospital & Medical Center Spokane Valley WA State DSHS -CSD Region 1 Spokane Valley WA State ESD Telecenter - Valley Spokane Valley Wagstaff, Inc. Spokane Valley 1991 Commute Trip Reduction Law I . >Why? Reduce air pollution, energy use and! traffic congestion ] • • >What? Law to reduce number and .distance adrive-alone trips 9When? Implemented in 1993 to reduce SOV and/or VMT by: • 15% after two years • 20% after four years • 25% after six years • 35% after twelve' years >Who? Ten largest counties and major employers Major Employers are Affected, if: • 100+ employees arriving at a single worksite Scheduled to work between 6 a.m. & 9 a.m. • Work 35+ hours per week (Monday —Sunday) • Work on' 2 or more weekdays(Woriday Friday) >: Work for at least 12.continuoLislriionths Affected Em pIoyerRecuirernents Appoint an Employee Transportation Coordinator Survey in goal years • Post ETC's name and phone number at worksite Submit and implementapprovOd CTR Program Report annually to jurisdiction , Comply with local CTR ordinance Make a "good faith effort" to achleve CTR goals Compliance with CTROrdiflan ➢ Violations ➢ Fully implement approved CTRProgram and satisfy all requirements of CTR Ordinance • Failure to develop or submit CTR Program • Failure to implement approved CTR,Program • Failure to modify unacceptab Program • Failure to self- identify to Spokane County ➢ Civil Penalties • First Violation = $lOOper working day • Subsequent Violations = $25Oper working day • Penalties begin 15 days fC'IIOWiflgflotice Employer Benefits of CTR Reduces parking requirements' Effective employee recruiting/retention tool Increases employee productivity - > Decreases employee absenteeism • Demonstrates environmental concern Promotes community and employee goodwill .r. Reduces shipping and deliverydelays Trip Reduction Strategies Employee Use of Alternative Commute Modes: - Carpool - Vanpool - Transit Non-rnoiorized Supporting Strategies and Ele'mehts: - Alternative Work Schedules (qvc/w) - Teleco - Parking Management - Guaranteed Ride Home - Incentives - Riden 4 CorithuOlit Marketing of CIRPI'Ogram Keys to Success ➢ Gain top management support • ➢. Select a motivated, enthusiag.tic ETC ➢ Get employees involved earl . � ➢ Implement tailored CTR program ➢ Promote CTR program continuously ➢ Sell the benefits to employees Why Trip Reduction is frnportan Improves and helps maintain SOokane's air quality Enhances quality of life Reduces impact of increased traffic on infrastructure Enhances mobility and economic vitality Reduces energy consumption, ➢ Consistent implementation of CTR county -wide ➢ Efficient use of public funds ➢ Revenue - neutral Agreement ➢ Administrative requirements fulfilled by Spokane County CTR Office staff Continued success A Comprehensive Approach The Spokane County Commute Trip Reduction (CTR) Office provides contractual services!to all cities in Spokane County affected by the CTR Law while serving each City's specific needs. Spokane County also provides a variety of services to employers affected by the Commute Trip Reduction (CTR) Law. jWorking closely with Employee Transportation Coordinators (ETCs) at worksites across the county, we provide personalized, customized assistance in the development, design, implementation and maintenance of employer commute trip reduction programs. , The following services are provided by Spokane County CTR Office staff to all seven CTR - affected jurisdictions located in Spokane County, supporting 99+ CTR - affected work site t • All administrat r equired by local. ordinances and the CTR Law, including compliance, monitoring and measurement surveys . • • Employer Outreach and Support • Employer Training •• Technical Services • Ridematch Services - TransMatch . • ETC and Employee Educational Materials - • Video Library • Guaranteed Ride Home • ETC Networking • Way to Go Awards - CTR Recognition Program • Promotional Services • Regional Promotional Campaigns Spokane County - Commute Trip Reduction Services CTR Works The CTR Program removes 20,700 vehicles from the state's roadways every r orning. If the 4,500 vehicles removed in ' the Spokane County area each morning were lined up bumper to bumper., they would fill one lane of 1 -90 from Division Street in Spokane to Post Falls, Idaho (approximately 17 miles), The.cost to the County to provide this additional capacity would be $1.3- $12.7 million. Each year, the program prevents 519 tons of air pollution and reduces petroleum consumption by 603,000 gallons, saving Spokane citizens $905,000 to $1.1 million in fuel costs alone. Of particular concern in Spokane County is the emission of Carbon Monoxide (CO) by automobiles. One of only eight U.S. cities to be classified as a "serious" non - attainment area for CO, 'the CTR program reduced CO emissions by 458 tons per year in 2001, The values for the years 1995 - 1999 were; 592 tons in 1995, 616 tons in 1997 and 454 in 1999. In the ten' years since CTR was implemented, the drive alone rate among targeted employees has been reduced by 11.3 %, from 81.8% in 1993 to 72.5% in 2001. The most popular alternative to solo commuting, carpooling has seen the largest increase in usage from 10.5 %'of trips in, 1993'to 14.4% of trips in 2001. CTR is a good investment Each dollar the state invests in CTR leverages more than four dollars in investments from its private sector partners. Employers invest in CTR because it makes good business sense and because they are supported by a strong and active county -wide program. More than 1,100 worksites participate in the CTR Program statewide. In Spokane County, 107 worksites are part of the CTR program, including 12 worksites: participating voluntarily. CTR will become more valuable With population growth in Spokane County projected to grow by over 35% in the next 20 years, and the planned cuts to local transit service as a result of the passage of Initiative 695, ,the importance of the CTR Program for managing demand on the transportation system is greatly increased. City of Liberty Lake CTR Timeline • ➢ Implemented CTR Program in .2002 ➢ Annual Report Form due to Spaane County Feb. 1 ➢ Measurement goal of 15% reduction inSQVIVMT in May 2004 4 INTERGOVERriN ENTAL AGREEMENT THIS AGREEMENT, made and entered into this day of , 2003 by and between the City of Spokane Valley, a municipal corporation of the State of Washington, having offices for the transaction of business at 11707 E. Sprague Ave., Suite 106, Spolcane Valley, WA, 99206, hereinafter referred to as the "City" and Spokane County, a political subdivision of the State of Washington, having offices for the transaction of business at West 1026 Broadway Avenue, Spokane, Washington, 99260, hereinafter referred to as the "County," jointly hereinafter referred to as the "Parties." WITNESSETH WHEREAS; the Washington State Legislature has adopted legislation codified in RCW 70.94.521 through 551, the purpose of which is to improve air quality, reduce traffic congestion and reduce the consumption of petroleum fuels through employer -based programs that encourage the use of alternatives to the si.ng1e occupant vehicle for commute trips; and WHEREAS, the County and each affected city within Spokane County have adopted Commute Trip Reduction Ordinances and must implement a Commute Trip Reduction (CTR) Plan for all major employers; and WHEREAS, the Washington State Department of Transportation has the statutory authority under Section 2 of RCW 70.94.541 to provide assistance to local governments serving the communities of the State for the purpose of implementing Commute Trip Reduction Plans and Ordinances; and . WHEREAS, pursuant to the provisions of RCW Section 70.94.544, the Washington State Department of Transportation is directed to proportionally distribute funds to counties, and counties upon receipt of such funds, proportionally distribute the same to cities based on number of affected worksites, to be used to implement and administer Commute Trip Reduction Plans and Ordinances; and WIT REAS, Spokane County bas entered into an agreement with the Washington State Department of Transportation under Agreement No. GCA3667, hereinafter referred to as "WSDOT Agreement," pursuant to which. Spokane County is eligible to receive a reimbursable amount of funds which the County will distribute to itself and cities to implement and administer Commute Trip Reduction Plans and Ordinances; and ArITF'REAS, pursuant to the provisions of RCW Section 70.94.527 (6), counties and • cities may enter into agreements through the Tnterlocal Cooperation Act to coordinate the development and implementation of Commute Trip Reduction Plans and Ordinances; and WHEREAS, Spokane County has allocated $33,278.93 to the City from the grant Agreement No. GCA3667 which the City is now desirous of making available to the County to perform those tasks which are the responsibility of the City. NOW, '1'N.EREFORE, for and in consideration of the mutual promises set forth hereinafter, and as authorized under chapter RCW 70.94.527 (6), the parties hereto do mutually agree as follows: IAA 11 Section 1: PURPOSE The County has entered into a WSDOT Agreement with the Washington State Department,.of Transportation under which it will receive $173,401 for year one and year two to be based on Exhibit I "Funding Allocation Methodology ". This funding is to be allocated to the County and cities within Spokane County for their use in the implementation and administration of their Commute Trip Reduction Plans and Ordinances. The County, based upon an allocation formula established by the Washington State Department of Transportation, has determined that the City shall receive $33,278.93 from the WSDOT Agreement from which it shall perform certain tasks. The City agrees to its proportionate share of the monies made available to the County in the WSDOT Agreement and agrees to allow Spokane County to retain its proportionate share in consideration of the County performing those tasks as more particularly • set forth in Attachment "A" attached hereto and incorporated herein by reference. In conjunction with allowing the County to retain its proportionate share of monies, the City will execute any and all necessary documents which may be required by the Washington State Department of Transportation. It is understood by the parties hereto, that in order for the County to perform those tasks as set forth in Attachment "A" for the City, the City must perform certain tasks. Attached hereto as Attachment 'B" and incorporated herein by reference, is a listing of tasks which the City agrees to perform in conjunction with the County performing those tasks set forth in Attachment Section 2: DURATION The County agrees t� provide those tasks set forth in Section and complete perfonnnin such tasks on or before June 30, 2005. Section 3: TERMINATION The parties agree, that this Agreement. may be ternunated by either party for material breach of any provision set forth herein, upon ninety (90) days advance written notice to the other party at the address set forth hereinabove. Provided, however, th.e parties agree that any . notification of termination shall set forth the specific provision(s) for which such notification is being provided and additionally, advise that if such default is cured within such ninety (90) day time frame, said termination notification shall be of no force and effect. In the event of termination, the County agrees to provide to the City all written documentation which it has completed to the date of termination under the terms of this Agreement. Additionally, the County agrees to return to the City that portion of the monies set forth in Section 1 hereinabove, which has not been expended by the county, prior to the date of termination, on the City's behalf in providing those tasks as set forth in Attachment "A." Provided, further, the parties recognize that the Washington State Department of Transportation in Agreement No. GCA3667, has retained the right to unilaterally terminate all or a part of such contract if there is a reduction of funds from the funding source. Accordingly, in the event that the Washington State Department of Transportation terminates all or part of the WSDOT Agreement with Spokane County, and such action affects the allocation of funds by the County to the City herein, and/or modifies the tasks to be performed hereunder, the parties will immediately meet to renegotiate the provisions of this Agreement. Section 4: DESIGNATION OF ADMINISTRATOR The County hereby designated Ms. Aurora J. Crooks, the Spokane County Transportation Demand Management Manager, as its designee for the purpose of administering and coordinating the County's responsibilities under the terms of this Agreement. Section 5: ACQUISITION/DISPOSITION OF PROPERTY The parties hereto agree that any real or personal property acquired by the County with those monies made available to the County by the City under Section 1 hereinabove, shall be and remain the sole property of the County upon acquisition and/or termination of this Agreement. Section 6: COMTPLIANCE WITH LAWS The County agrees to observe all applicable federal, state and local laws, ordinances and regulations including, but no necessarily limited to, the Americans with Disabilities Act and chapter 49.60 RCW, to the extent that they may have any bearing on performing those tasks for the City as set forth in Section 1 hereinabove. Additionally, the County agrees to comply with all applicable funding audit requirements of the Washington State Department of Transportation in conjunction with performing those tasks for the City. Section 7: NOTICES All notices called for or provided for in this Agreement shall be in writing and must be served on any of the Parties either personally or by certified mail, return receipt requested, sent to the Parties at their respective addresses hereinabove given. Notices sent by certified mail shall be deemed served when deposited in the United States mail, postage prepaid. Section 8: ITEADINGS The section headings in this Agreement have been inserted solely for the purpose of convenience and ready reference. In no way do they purport to, and shall not be deemed to, define, limit or extend the scope or intent of the sections to which they appertain. Section 9: MODIFICATION No modification or amendment of this Agreement shall be valid until the same is reduced to writing and executed with the same formalities as this present Agreement. Section 10: ALL WRITINGS CONTAINED HEREIN This Agreement contains all the terms and conditions agreed upon by the Parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the Parties hereto. The City has read and understands all of this Agreement, and now states that no representation, promise or agreement not expressed in this Agreement has been made to induce the City to execute the same. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written. Title: BOARD OF COUNTY COMMISSIONERS OF SPOKANE COUNTY, WASHINGTON JOHN ROSKELLEY, CHAIR . CITY OF By: PHILLIP D. HARRIS, VICE CHAIR M. KATE McCASLIN ATTEST: Al !EST: VICKI M. DALTON CLERK OF THE BOARD By Daniela Erickson, Deputy County Number of'Sites Trips Reduced/ Day Worksite Base Allocation Performance Allocation Additional to Achieve S80,00 Floor Total Allocation Benton $50,00 $80,000 Clark 47 654 $56,400 $20,266 $3,334 King 552 - 11,575 $662,40 $280,270 - $942,670 Kitsap 32 0 $38,40 $ $41,600 $80,000.00 Pierce 83 • 4.278 $99,600 $103,585 $203,185 Snohomish . 84 1,050 $100,800 $25,42 $126,224 Spokane 99 2,255 $118,800 $54,601 $173,401 Thurston 65 579 $78,000 $14,02 $92,020 Whatcom 23 329 $27,600 $10,195 $42,205. $80,000 Yakima - 20 304 $24,000 $9,420 $46,580 $80,000 TOTAL 1,005 21,024 $1,206,000 $517,781 S133,719 81,907,500.00 July 1, 2003 - June 30, 2004 Allocation ,Exhibit i Funding Allocation Methodology Funding allocated by WSDOT for local implementation of CTR activities is based on the following formula: 1. Each county is provided $1,200 per affected worksite as a base allocation to ensure sufficient funding to meet jurisdiction obligations pursuant to RCW.70.94.521 -551. The number of affected worksites in each county shall be based on information contained in WSDOT database as of May I of each year. 2. The remaining funding will be allocated based on the number of commute trips reduced per day in each county between each worksite's base year survey and its most recent survey, provided that every county receives at least $80,000 per year. For the period July 1, 2003 through lune 30, 2004, the most recent survey period will be 2001. For the period July 1, 2004 through June 30, 2005, the most recent survey period will be 2003. Any distribution of funds to jurisdictions within a county shall be done on the basi.s of the number of affected worksites in each jurisdiction. For example, if there are two jurisdictions in a county, each with fifty percent of the total number of affected worksites in the county, any division of funds within the county should provide each of the two jurisdictions with fifty percent of the total county funding allocation. The County will: ATTACHMENT "A" STATEMENT OF WORK 1. Promote consistency within all affected local government jurisdictions within Spokane County, while serving.the_City's specific needs. 2. Maintain and administer the City's CTR Ordinances and Plan. 3. Employ a full -time Transportation Demand Management Manager to administer the County's and City's CTR Plans and Ordinances. 4. Take reasonable measures to identify and notify all affected employers within the County. 5. Assist each affected employer within the City in preparing a program and promoting the principles of Transportation Demand Management (TDM) with the employer's employees. 6. Maintain an appeals process consistent with RCW 70.94.534(6) and the procedures contained in the CTR Guidelines whereby employers in the local jurisdiction may obtain an exemption or modification of CTR requirements, including the establishment of alternative SOVIVMT goals. Within 30•days from the date of approval, submit to WSDOT the name and employer identification code for any workaite that has been granted an exemption or goal modification ;.Include information about the duration.of all exemptions and information on the type of goal .modification granted. • • 7. Submit to Washington State Department of Transportation periodic progress reports fumznarizing the overall CTR implementation costs incurred by the County and shall be reported in a format provided by WSDOT. 8. Provide WSDOT with a public hearing notice and copies of any proposed amendments to the CTR ordinance, plan, and/or administrative guidelines within the first week of the public review period and final copies of all actions within one (1) month of adoption. 9. Coordinate and administer baseline and measurement CTR employer surveys. Provide employer survey assistance, training and state - supplied survey forms 10. Notify Washington State Department of Transportation prior to sending any surveys to University of Washington for processing. The notification must include the name of the worksite, employer identification code and type of survey for each survey being submitted for processing. The notification shall be submitted as an electronic spreadsheet via electronic mail. The County agrees to wait for confirmation from. WSDOT prior to sending or delivering the surveys for processing. 11. Return CTR Survey Report form to their respective employer within thirty (30) days of receipt from the state, and return all processed CTR Employee Questionnaires unaltered to their respective employer within ninety (90) days of receipt from the state. 12. Provide WSDOT with updated lists of affected worksites and jurisdiction contacts on a quarterly basis. These updates will be submitted electronically in a format specified by WSDOT. 13. Continue to monitor the programs of each of the affected employers in the City to determine compliance with the CTR Ordinance and Plan. Complete annual review employer CTR programs including a determination as to whether the employer is acting in good faith to meet the goals established by the CTR Law. Within 30 days from the date of approval, submit to WSDOT one electronic or hard copy of any approved employer annual reports. 14. Provide on -going support to all employer designated Employee Transportation Coordinators (ETCs) and assist ETCs in facilitating regular- employer networking opportunities and obtaining information necessary to perform their duties including information materials that explain a range of measures and activities t� encourage employee use of commute alternatives. 15. Market available services to affected employers to assist in accomplishing CTR goals. 16. Work collaboratively with and provide technical guidance and support to employers in developing successful CTR programs. 17. Conduct at least :one Basic ETC Training Course per year, using WSDOT - provided ETC Handbook and other training materials reviewed and approved by WSDOT. 18. Prepare and submit to WSDOT an annual work plan which outlines major tasks and activities to be conducted for the coming year. 19. Provide employers with written information on basic requirements of the CTR ordinance, CTR zones and an explanation of how the plan is intended to achieve its goals. 20. Attend transportation fairs at affected employer worksites to encourage high- occupancy vehicle commuting and promote the employer's CTR program. 21. Design, construct and distribute worksite Commuting Options Boards. Provide professional materials such as brochures, flyers, posters, newsletters, clip art and other tools to assist employer implementation of worksite CTR programs. 22. Submit any requests for exemptions or modifications from CTR requirements including requests for goal modifications, to the Washington State Department of Transportation for review and comment within five (5) days of receiving such requests. Spokane County shall not approve or deny any such requests until receiving comment on the request from WSDOT within five (5) days. 23. Provide all affected employers with the WSDOT- approved "Program Description & Employer Annual Report" form. Ensure completed reports are submitted by affected employers to meet applicable deadlines... 24. Submit to Washington State Department of Transportation periodic invoices (State form 134 -139 EF) along with progress reports that accurately assess the progress made by County, on behalf of City, in implementing RCW 70.94.521 -551. Report contents include: a. Detailed summary of CTR events and projects, including implementation assistance provided to affected employers within the City; b. Actual total CTR expenditures used by the County for all state CTR funds expended by the County during the previous quarter for the purpose of CTR implementation using WSDOT pre - approved format; c. Updated list of affected employers and worksites (electronic); d. Total number of worksitcs by jurisdiction; e. List of sites which have applied for exemptions or goal modifications; f. Hard copies of any employer annual reports approved during quarter. 25. Establish and maintain books, records, documents and other evidence and accounting procedures and practices sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred solely for the performance of this Agreement, Establish and maintain a separate "CTR Account" within Spokane County along with supporting documentation such as payroll and time records,,invoices, contracts, vouchers or products proving in proper detail the nature and propriety of the_ charges. 26. Notify Washington State Department of Transportation of any proposed changes in CTR zone boundaries and/or values (proportion of Single- Occupant Vehicle commute trips and/or commute trip Vehicle Miles Traveled per employee). 27. ,Participate in local implementation of the statewide CTR public awareness and recognition programs developed by Washington State Department of Transportation. 28. _ Make recommendations to the City for policies on parting and site design which will encourage the use of alternative transportation modes. 29. Encourage employers to develop site designs and improvements to office and industrial sites that promote the use of alternative transportation modes. 30. Assist Washington State Department of Transportation with CTR evaluation. 31. Administer TransMatch the Comity -wide ridematchi.ng service. 32. Serve as liaison between Washington State Department of Transportation and cities towns, transit agencies and regional transportation planning organizations for the purpose of RCW 70.94.521 -551. Page - 9 The City will: 1. Provide Spokane County with copies of any proposed amendments to the CTR Plan and Ordinance. 2. Provide Spokane County with copies of any CTR- related amendments to parking ordinances prior to public review. 3. Develop, implement and maintain its own CTR Program as an affected employer or as otherwise specified in the CTR Task Force Guidelines or RCW 70.94.521 -551. 4. Reimburse the County for the services provided by this Agreement in an amount equal to the City's share of the CTR funding as provided in RCW 70.94.544. ATTACHMENT "B" STATEMENT OF WORK Commute Trip Reduction Program MODEL ; ORDINANCE Revised July 1997 The objective of this model ordinance is to provide a. consistent framwork which local jurisidctions can use to draft and, as necessary, amend local CTR ordinances. RCW 70.94.527(4) requires that local CTR plans and ordinances be consistent with the guidelines established by the CTR. Task Force, including this model ordinance It should be recognized that each jurisdiction has its own ordinance drafting guidelines, and this will be reflected in the final commute trip reduction (CTR) ordinances that are adopted. Most background or supporting information or finding of fact is contained in a cover letter transmitting the ordinance to (city /county) legislative authority for adoption. If deemed necessary, a preamble or statement of fact or intent may precede the main body of the ordinance for the purpose of declaring legislative intent or reciting a finding of fact, but generally is not included in a section of an ordinance. All statements that do not have the force of law are kept to a minimum in the ordinance. The statute (RCW 70.94.527) requires that the plan be adopted by ordinance and that the plan, not the ordinance, must include goals, CTR zones, etc. Theoretically, all that the ordinance would need to do is adopt the plan. However, as with land use plans, it may be both appropriate and necessary to adopt implementing actions by ordinance (as in land development permits, zoning codes, etc.) at the discretion of the jurisdiction's legal adviser. For purposes of making it easier to locate information in this model ordinance, the section and some subsection headings have been shown in bold -face type although this is not typically used in ordinance format. Commute Trip Reduction Program LOCAL GOVERNMENT MODEL ORDINANCE Ordinance Number An ordinance adopting the (city /county) commute trip reduction (CTR) plan and implementing measures as required by RCW 70.94.527. [Note: It may be necessary to note that the jurisdiction's code is being amended or a new section is being created.] Finding: This ordinance is consistent with the CTR Task Force Guidelines. Be It Ordained By The Council of Section 1. Definitions For the purpose of this ordinance, the following definitions shall apply in the interpretation and enforcement of this ordinance A. "Affected Employee" means a full-time employee who begins his or her regular work day at a single worksite between 6:00 a.m. and 9:00 a.m. (inclusive) on two or more weekdays for at least twelve continuous months. Seasonal agricultural employees, including seasonal employees of processors of agricultural products, are excluded from the count of affected employees. B. "Affected Employer" means an employer that employs one hundred (100) or more full-time employecs,at a single worksite who are scheduled to begin their regular workday between 6:00 a.m. and 9:00 a.m. (inclusive) on two or more weekdays for at leasttwelve continuous months.-. Construction worksites, =when the expected duration of the construction is less than two years, are excluded from this definition. (Also see definition of employer.) C. "Alternative Mode" means any means of commute_ transportation other than that in which the single - occupant motor vehicle is the dominant mode, including telecommuting and compressed work weeks if they result in reducing commute trips. D. "Alternative Work Schedules" mean programs such as compressed work weeks that eliminate work trips for affected employees. E. "Base Year" means the period on which goals for vehicle miles traveled (VMT) per employee and proportion of single- occupant vehicle (SOV) trips shall be based. 2 F. "Carpool" means a motor vehicle occupied by two (2) to six (6) people traveling together for their commute trip that results in the reduction of a minimum of one Motor vehicle commute trip. G. "Commute Trips" mean trips made from a worker's home to a worksite with a regularly scheduled arrival time of 6:00 a.m. to 9:00 a.m. (inclusive) on weekdays. H. "CTR Plan" means a (city's/county's) plan and ordinance to regulate and administer the CTR programs of affected employers within its jurisdiction. I. "CTR Program" means an employer's strategies to reduce affected employees' 'SOV use and VMT per employee. J. "CTR Zone" means anarea, such as a census tract or combination of census tracts, within a (city /county) characterized by similar employment density, population density, level of trAnsit service, parking availability, access to high occupancy vehicle facilities, and other factors that are determined to affect the level of SOV commuting. K. "Commuter Matching Service" means a system that assists in matching commuters for the purpose of commuting together. L. "Compressed Work Week" means an alternative work schedule, in accordance with employer policy, that regularly allows a full -time employee to eliminate at least one work day every two weeks by working longer hours during the remaining days, resulting in fewer commute trips by the employee. This definition is primarily intended to include weekly and bi- weekly arrangements, the most typical being four 10 -hour days or 80 hours in nine days, but may also include other arrangements. M. "Custom Bus /Buspool" means a commuter bus service arranged to transport employees to work. N. "Dominant Mode" means the mode of travel used for the greatest distance of a commute trip. 0. "Employer" means a sole proprietorship, partnership, corporation, unincorporated association, cooperative, joint venture, agency, department, district, or other individual or entity, whether public, non - profit, or private, that employs workers. P. "Exemption" means a waiver from any or all CTR program requirements granted to an employer by a (city /county) based on unique conditions that apply to the employer or employment site. Q. "Flex-Time" is an employer policy allowing individual employees some flexibility in choosing the time, but not the number, of their working hours to facilitate the use of alternative modes. 3 R "Full -Time Employee" means a person, other than an independent contractor, scheduled to be employed on a continuous basis for 52 weeks for an average of at least 35 hours per week. S. "Good Faith Effort" means that an employer has.met the minimum-requirements.identified in RCW 70.94.531 and this ordinance, and is working collaboratively with the (City /County) to continue its existing CTR program or is developing and implementing program modifications likely to result in improvements to its CTR program over an agreed -upon length of time. T. "Implementation" means active pursuit by an employer of the CTR goals of RCW 70.94.521- 551 and this ordinance as evidenced by appointment of a transportation coordinator, distribution of information to employees regarding alternatives to SOV commuting, and commencement of other measures according to its approved CTR program and schedule. U. "Mode" means the means of transportation used by employees, such as single- occupant motor vehicle, rideshare vehicle (carpool, vanpool), transit, ferry, bicycle, walking, compressed work schedule and telecommuting.. V. "Notice" means written communication delivered via the United States Postal Service with receipt deemed accepted three days following the day on which the notice was deposited with the Postal Service unless the third day falls on a weekend or legal holiday in which case the notice is deemed accepted the day after the weekend or legal holiday. W. "Peak Period' means the hours from 6:00 a.m. to 9:00 a.m. (inclusive), Monday through Friday, except legal holidays. X. "Peak Period Trip" means any employee trip that delivers the employee to begin his or her regular workday between 6:00 a.m. and 9:00 a.m. (inclusive), Monday through Friday, except legal holidays. Y. "Proportion of Single - Occupant Vehicle Trips" or "SOV Rate" means the number of commute trips over a set period made by affected employees in SOVs divided by the number of potential trips taken by affected employees working during that period. Z. "Single- Occupant Vehicle (SOV)" means a motor vehicle occupied by one (1) employee, for . commute purposes, including a motorcycle. AA. "Single- Occupant Vehicle (SOV) Trips" means commute trips made by affected employees in SOVs. BB. "Single Worksite" means a building or group of buildings on physically contiguous parcels of land or on parcels separated solely by private or public roadways or rights -of -way occupied by one or more affected employers. 4 CC. "Telecornmuting" means the use of telephones, computers, or other similar technology to permit an employee to work from home, eliminating a commute trip, or to work from a work place closer to home, reducing the distance traveled in a commute trip by at least half. DD. "Transit" means a multiple- occupant vehicle operated on a for -hire, shared -ride basis, including bus, ferry, rail, shared -ride taxi, shuttle bus, or vanpool. A transit trip counts as zero (0) vehicle trips. EE. "Transportation Demand Management (T'DM )" means a broad range of strategies that are primarily intended to reduce and reshape demand on the transportation system. FF." Transportation Management Organization (TWO)" means a group of employers or an association representing a group of employers in a defined geographic area. A TMO may - represent employers within specific city limits or may have a sphere of influence that extends beyond city limits. GG. " Vanpool" means a vehicle occupied by from seven (7) to fifteen (15) people traveling together for their comuzute trip that results in the reduction of a ninimum of one motor vehicle trip. A vanpool trip counts as zero (0) vehicle trips. • HN. " Vehicle Miles Traveled (V'vt7) Per Employee" means the sum of the individual vehicle commute trip lengths in miles made by affected employees over a set period divided by the number of affected employees during that period. I:i. "Week" means a seven -day calendar period starting on Monday an.d continuing through Sunday. JJ. "Weekday" means any day of the week except Saturday or Sunday. ICJ. "Writing," "Written," or "In Writing" means original signed and dated documents. Facsimile (fax) transmissions are a temporary notice of action that must be followed by the original signed and dated document via mail or delivery. Section 2. (City /County) CTR .Plan The (city's /county's) CTR Plan set forth in Attachment A is wholly incorporated herein by reference. Section 3. Responsible (City /County) Agency(s) The (city /county) agency(s) responsible for implementing this ordinance, the CTR plan, and the (city /county) CTR program should be identified together with any authority necessary to carry out such responsibilities such as rule- making or certain administrative decisions. Section 4. Applicability 5 The provisions of this ordinance shall apply to any affected employer at any single worksite within the corporate limits of the (City of /unincorporated County). A. Notification of Applicability • 1. In addition to (city's/county's) established public notification for adoption of an ordinance, a notice of availability of a summary of this ordinance, a notice of the requirements and criteria for affected employers to comply with the ordinance, and subsequent revisions shall be published at least once in (city's /county's) official • . newspaper not more than 30 days after passage of this ordinance or revisions. 2. Affected employers located (city /county) are to receive written notification that they are subject to this ordinance Such notice shall be addressed to the company's chief executive officer, senior official, or CTR manager at the worksite. Such notification shall be at least 180 days priorto the due date for submittal of their CTR program. 3. Affected employers that, for whatever reason, do not receive notice within 30 days of passage of the ordinance and are either notified or identify themselves to the (city /county) within 180 days of the passage of the ordinance will be granted an extension to assure up to 180 days within which to develop and submit a CTR program. 4. Affected Employers that have not been identified or do not identify themselves within. 180 days of the passage of the ordinance and do not submit a CTR-prograrn within 180 days from the passage of the ordinance are in violation of this ordinance. B. New Affected Employers Employers that meet the definition of "affected employer" in this ordinance must identify themselves .to the (city /county) within 180 days of either moving into the boundaries of (city /unincorporatedcounty) or in_employment at a worksite to, one hundred (100) or more affected employees. Such employers shall be given 180 days to develop and submit a CTR program. Employers that do not identify themselves within 180 days are in violation of this ordinance. New affected employers shall have two years_to meet the first CTR goal of a 15 percent reduction in proportion of single occupant vehicle trips or vehicles miles traveled per person; four years to meet the second goal of a 20 percent reduction; six years to meet the third goal of a 25 percent reduction; and twelve years to meet the fourth goal of a 35 percent reduction, from the time they begin their program. C. Change in Status as an Affected Employer. Any of the following changes in an employer's status-will change the employer's CTR program requirements: 6 1. If an employer initially designated as an affected employer no longer employs one hundred (100) or more affected employees and expects not to employ one hundred (100) or more affected employees for the next twelve (12) months, that employer is no longer an affected employer. It is the responsibility of the employer to notify (city /county) that it is no .longer an affected employer. 2. If the same employer returns to the level of one hundred (100) or more affected employees within the same twelve (12) months, that employer will be considered an affected employer for the entire 12 months and will be subject to the same program requirements as other affected employers. 3. If the same employer returns to the level of one hundred (100) or more affected employees twelve (12) or more months after its change in status to an "unaffected" employer, that employer shall be treated as a new affected employer and will be subject to the same program requirements as other new affected employers. Section 5. Requirements for Employers An affected employer is required to make a good faith effort, as defined in RCW 70.94.534(2) and this ordinance, to develop and implement a CTR program that will encourage its employees to reduce VMT per employee and SOV commute trips. The employer shall submit a description of its program to (city /county) and provide an annual progress report to (city /county) on employee commuting and progress toward meeting the SOV goals. The CTR program must include the mandatory elements as described below. A. CTR Program Description Requirements The CTR'program description presents the to be undertaken by an employer to achieve the commute trip reduction goals for each goal year. Employers are encouraged to consider innovative strategies and combine program elements in a Manner that will best suit their location, site characteristics business type, and employees' commuting needs. Employers are further encouraged to cooperate with each other and to form or use transportation management organizations in developing and implementing CTR programs. At a minimum the employer's description must include: 1) general description of the employment site location, transportation characteristics, and surrounding services, including unique conditions experienced by the employer or its employees; 2) number of employees affected by the CTR. program; 3) documentation of compliance with the mandatory CTR program elements (as described in subsection B of this section); 4) description of the additional elements included in the CTR program (as described in subsection B of this section); and 5) schedule of implementation, assignment of responsibilities, and commitment to provide appropriate resources. B. Mandatory Program Elements Each employer's CTR program shall include the following mandatory elements: 7 1. Transportation Coordinator The employer shall designate a transportation coordinator to administer the CTR program. The coordinator's and/or designee's name, location, and telephone number must be displayed prominently at each .affected.worksite.._The coordinator.shall oversee.all . elements of the employer's CTR program and act as liaison between the employer and (city /county). The objective is to have an effective transportation coordinator presence at each worksite; an affected employer with multiple sites may have one transportation coordinator for all sites. 2. Information Distribution Information about alternatives to SOV commuting shall be provided to employees at least once a year. Each employer's program description and annual report must report the information to be distributed and the method of distribution. 3. Annual Progress Report The CTR program must include an annual review of employee commuting and progress and good faith efforts toward meeting the SOV reduction goals. Affected employers shall file an annual progress report with (city /county) in accordance with the format established by this ordinance and consistent with the CTR Task Force Guidelines. The report shall describe each of the CTR measures that were in effect for the previous year, the results of any commuter surveys undertaken during the year, and the number of employees participating in CTR programs Within the report, the employer should evaluate the effectiveness of the CTR program and, if necessary, propose modifications to achieve the CTR goals. Survey information or approved alternative information must be provided in tbe.reports submitted m the second, fourth, sixth, eighth, tenth, and.twelvth years after implementation begins.. The employer should contact the(city /county) for the format of the report. 4. Additional Program Elements In addition to the specific program elements described above, the employer's CTR program shall include additional elements as needed to meet CTR goals. Elements may include, but are not limited to, one or more of the following: a) Provision of preferential parking or reduced parking charges, or both, for high - occupancy vehicles; b) Instituting or increasing parking charges for SOVs; c) Provision of commuter ride matching services to facilitate employee ride - sharing for commute trips; d) Provision of subsidies for transit fares; e) Provision of vans for vanpools; 8 1) Provision of subsidies for carpools or vanpools; g) Permitting the use of the employer's vehicles for carpooling or vanpooling; h) Permitting flexible work schedules to facilitate employees' use of transit, carpools, or vanpools; i) Cooperation with transportation providers to provide additional regular or express service to the worksite; j) Construction of special loading and unloading facilities for transit, carpool, and vanpool users; k) Provision of bicycle parking facilities, lockers, changing areas, and showers for employees who bicycle or walk to work; 1) Provision of a program of parking incentives such as a rebate for employees who do not use the parking facilities; m) Establishment of a program to permit employees to work part- or full-time at home or at an alternative worksite closer to their homes; n) Establishment of a program of alternative work schedules, such as a compressed work week which reduces commuting; and o) Implementation of other measures designed to facilitate the use of high- occupancy vehicles, such as oti -site day care emergency taxi services. Section 6. Record Keeping Affected employers shall include a list of the records they will keep as part of the CTR program they submit to (city /county) for approval. Employers will maintain all records listed in their CTR program for a minimum of 24 months. (City/county) and the employer shall agree on the record keeping requirements as part of the accepted CTR program. Section 7. Schedule and Process for CTR Reports A. CTR Program Not more than 180 days after the adoption of this ordinance, or within six months after an employer qualifies under the provisions of this ordinance, the employer shall develop a CTR program and shall submit to (city /county) a description of that program for review. B. Document Review (City /county) shall provide the employer with written notification if a CTR program is deemed unacceptable. The notification must give cause for any rejection. If the employer receives no written notification of extension of the review period of its CTR program or comment on the CTR program or annual report within 90 days of submission, the employer's program or annual report is deemed accepted. The (city /county) may extend the review period up to 90 days. The implementation date for the employer's CTR program will be extended an equivalent number of days. C. CTR Annual Progress Reports 9 Upon review of an employer's initial CTR program, (city /county) shall establish the employer's annual reporting date, which shall not be less than 12 months from the day the program is submitted. Each year on the employer's reporting date, the employer shall submit to (city /county) its annual CTR report. D. Modification of CTR Program Elements Any affected employer may submit a request to (city /county) for modification of CTR program elements, other than the mandatory elements specified in this ordinance, including record keeping requirements. Such request may be granted if one of the following conditions exist: 1. The employer can demonstrate it would be unable to comply with the CTR program elements for reasons beyond the control of the employer, or 2. The employer can demonstrate that compliance with the program elements would constitute an undue hardship. This may include evidence from employee surveys administered.at the worksite: first, in the base year, showing that the employer's own base year values of VMT per employee and SOV rates were higher than the CTR zone average; and/or secondly, in the goal measurement year(s), showing that the employer has achieved reductions from its own base values that are comparable to the reduction goals established for the employer's CTR zone. E. Extensions An employer may request additional time to submit.a CTR program or CTR annual progress report, or to implement or modify a program. Such requests shall be via written notice at least 30 days before the due date for which the extension is being requested. Extensions not to exceed 90 days shall be considered for reasonable causes. (City /county) shall grant or deny tie. employer's extension request by written notice within 10.working days of its receipt of the_extension request: If there is'no response issued to the employer, an extension is automatically granted for "30 days.. Extensions shall not exempt an employer from any responsibility in meeting program goals. Extensions granted due to delays or difficulties.with any program element(s) shall not be cause for discontinuing or failing to implement other program elements. An employer's annual reporting date shall not be adjusted permanently as a result of these extensions. An employer's annual,reporting date may be extended at the discretion of (the director of..). F. Implementation of Employer's CTR Program Unless extensions are granted, the employer shall implement its approved CTR program not more than 180 days after the program was first submitted to the (city /county). Implementation of the approved program modifications shall begin within 30 days of the 10 final decision or 180 days from submission of the Ci1R program or CTR annual report, whichever is greater. Section 8. Credit For Transportation Demand Management Efforts A. Leadership Certificate As public recognition for their efforts, employers with VMT per employee and proportion of SOV trips lower than the zone average will receive a Commute Trip Reduction Certificate of Leadership from (city /county). B. Credit For Programs Implemented Prior to the Base Year Employers with successful TDM programs implemented prior to the base year may be eligible to apply for program exemption credit, which exempts them from most program requirements. Affected employers wishing to receive credit for the results of existing TDM efforts may do so by applying to (city /county) within 90 days of the adoption of this ordinance Application shall include data from a survey of employees or equivalent to establish the applicant's \3IT per employee and proportion of SOV trips. The survey or equivalent data shall conform to all applicable standards established in the CTR Task Force Guidelines. The employer shall be considered to have met the first measurement goals if their VMT per employee and proportion of SOV trips are equivalent to a 12 percent or greater reduction from the final base year CTR zone values. This three percentage point credit applies only to the first measurement goals. C. Program Exemption Credit Affected employers may apply for progr credit for the results of past or current TDM. efforts by applying to (city /county) within 90 days of adoption of the applicable CTR ordinance,•or as part of any annual report Application shall include results from a survey of employees, or equivalent information that establishes the applicant's VMT per employee and proportion of SOV trips. The survey or equivalent information shall conform to all applicable standards established in the CTR Task Force Guidelines. Employers that apply for credit and whose VMT per employee and proportion of SOV trips are equal to or less than goals for one or more future goal years, and commit in writing to continue their current level of effort, shall be exempt from the requirements of, the ordinance except for the requirements to report performance in the measurement years (Section 5 of this ordinance). If any of these reports indicate the employer does not satisfy the next applicable 11 goal(s), the employer shall immediately become subject to all requirements of the CTR. ordinance. Section 9. Enforcement A. Compliance For purposes of this section, compliance shall mean fully implementing in good faith all provisions in an approved CTR program. B. Program Modification Criteria The following criteria for achieving goals for VMT per employee and proportion of SOV trips shall be applied in determining requirements for employer CTR program modifications: 1) If an employer meets either or both goals, the employer has satisfied the objectives of the CTR plan and will not be required to modify its CTR program; 2) If an employer makes a good faith effort, as defined in RCW 70.94.534(2) and this ordinance, but has not met or is not likely to meet the applicable SOV or VMT goal, the city /county shall work collaboratively with the employer to make modifications to its CTR program. After agreeing on modifications, the employer shall submit a revised CTR program description to the city /county for approval within 30 days of reaching. agreement. 3) If an employer fails to make a good faith effort as defined in :RCW 70.94.53.4(2), and this ordinance, and fails to meet the applicable SOV or VMT reduction goal, the (city /county) shall work collaboratively with the employer to identify modifications to the CTR prograxand shall _direct_the employer -to revise its program within 30 days tp.incorporate the modifications. In response to the recommended,modifications, the employer shall submit arevised CTR program description, including the requested modifications or equivalent measures, within 30 days of receiving written notice to revise its program. (City /county) shall review the revisions and notify the employer of acceptance or rejection of the revised program. If a revised program is not accepted, (city /county) will send written notice to ti at effect to the employer within 30 days and, if necessary, require the employer to attend a conference with program review staff for the purpose of reaching a consensus on the required program. A final decision on the required program will be issued in writing by (city /county) within 10 working days of the conference. C. Violations 12 The following constitute violations if the deadlines established in this ordinance are not met: 1) Failure to develop and/or submit on time a complete CTR program, including: a) Employers notified or that have identified themselves to (city /county) within 180 days of the ordinance being adopted and that do not submit a CTR program within 180 days from the notification or self - identification; b) Employers not identified or self - identified within 180 days of the ordinance being adopted and that do not submit or implement a CTR program within 180 days from the adoption of the ordinance; 2) Failure to implement an approved CTR program, unless the program elements that are carried out can be shown through quantifiable evidence to meet or. exceed VivIT and SOV goals as specified in ordinance; 3) Failure to make a good faith effort, as defined in RCW 70.94.534 and this ordinance(2); or 4) Failure to revise a CTR program as defined in RCW 70.94.534(4) and this ordinance. D. Penalties 1) No affected employer with an approved CTR program which has made a good faith effort may be held liable for failure to reach the applicable SOV or VIM goal; 2) Each day of failure to implement the program shall constitute a separate violation, subject to penalties as described in RCW 7.80. [Note: The ordinance should either include a schedule of fines or direct that the responsible city /county agency adopt such a schedule by whatever process the city /county uses.] 3) An affected employer shall not be liable for civil penalties if failure to implement an element of a CTR program was the result of an inability to reach agreement with a certified collective bargaining agent under applicable laws where the issue was raised by the employer and pursued in good faith. Unionized employers shall be presumed to act in good faith compliance if they: a) Propose to a recognized union any provision of the employer's CTR program that is subject to bargaining as defined by the National Labor Relations Act; and • b) Advise the union of the existence of the statute and the mandates of the CTR program approved by (city /county) and advise the union that the proposal being made is necessary for compliance with state law (RCW 70.94.531). 13 Section,iO.Exemptiions and Goal Modifications . A. Worksite Exemptions An affected employer may request (city /county) to grant an exemption from all CTR program requirements or penalties for a particular worksite. The employer must demonstrate that it would experience undue hardship in complying with the requirements of the ordinance as a result of the characteristics of its business, its work force, or its location(s). An exemption may be granted if and only if the affected employer demonstrates that it faces extraordinary circumstances, such as bankruptcy, and is unable to implement any measures that could reduce the proportion of SOV trips and VMT per employee. Exemptions may be granted by (city /county) at any time based on written notice provided by the affected employer. The notice should clearly explain the conditions for which the affected employer is seeking an exemption from the requirements of the CTR program. (City /county) shall review annually all employers receiving exemptions, and shall determine whether the exemption will be in effect during the following program year. B. Employee Exemptions Specific employees or groups of employees who are required to drive alone to work as a condition of employment may be exempted from a worksite's CTR program. Exemptions may also be granted for employees who work variable shifts throughout the year and who do not rotate as a group to identical shifts. (City /County) will use the criteria identified in the CTR Task Force Guidelines to assess the validity of employee exemption requests _ . i (City /county) shall review a u_ally all employee_exetaption'requests, and shall determine whether the exemption 'will be in effect during the following program year. -.. C. Modification of CTR Program Goals 1) An affected employer may request that the (city /county) modify its CTR program goals. Such shall be filed in writing at least 60 days prior to the date the worksite is required to submit its program description or annual report. The goal modification request must clearly explain why the worksite is unable to achieve the applicable goal. The worksite must also demonstrate that it has implemented all of the elements contained in its approved CTR program. 2) The (city /county) will review and grant or deny requests for goal modifications in accordance with procedures and criteria identified in the CTR Task Force Guidelines. (3) An employer may not request a modification of the applicable goals until one year after city /county approval of its initial program description or annual report. 14 e Section it. Appeals [Note: The (city /county) should insert language which details its process for affected employers to appeal administrative decisions. The language should detail who will bear the appeal, timelines for filing an appeal, and the criteria by which appeals will be judged.] Closing Phrases and Legal Signatures Attachment A: City /county CTR plan (generally not referenced in the ordinance document). 15 Spokane County CTR Jurisdictional Services Performed by Spokane County CTR Office July 2003 CTR Jurisdictional Agreements: Spokane County has been the lead agency for the implementation of CTR services since 1993, as each affected jurisdiction has contracted back with the County to provide a consistent and comprehensive approach to CTR. All affected employers are treated equally, regardless of the jurisdiction in which they are located. This approach has resulted in a level playing field for all employers, fostered a cooperative spirit and has set a statewide example of intergovernmental cooperation and success. The Spokane County CTR Office provides a variety of services to local employers affected by the Washington State CTR Law. Working closely with Employee Transportation Coordinators (ETCs) at 99 CTR - affected worksites across the county, personalized assistance is provided in the development, design, implementation and maintenance of employer commute trip reduction programs. Notable County -wide Results include: The CTR Program removes 20,700 vehicles from the state's roadways every morning. If the 4,500 vehicles removed in the Spokane County area each morning were lined up bumper to bumper, they would fill one lane of 1 -90 from Division Street in Spokane to Post Falls, Idaho (approximately 17 miles). The cost to the County to provide this additional capacity would be $1.3- $12.7 million. Each year, the program prevents 519 tons of air pollution and reduces petroleum consumption by 603,000 gallons, saving Spokane citizens $905,000 to $1.1 million in fuel costs alone. Of particular concern in Spokane County is the emission of Carbon Monoxide (CO) by automobiles. One of only eight U.S. cities to be classified as a "serious" non - attainment area for CO, the CTR program reduced CO emissions by 458 tons per year in 2001. The values for the years 1995 - 1999 were 592 tons in 1995, 616 tons in 1997 and 454 in 1999. In the ten years since CTR was implemented, the drive alone rate among targeted employees has been reduced by 11.3 %, from 81.8% in 1993 to 72.5% in 2001. The most popular alternative to solo commuting, carpooling has seen the largest increase in usage from 10.5% of trips in 1993 to 14.4% of trips in 2001. CTR is a good investment Each dollar the state invests in CTR leverages more than four dollars in investments from its private sector partners. Employers invest in CTR because it makes good business sense and because they are supported by a strong and active county -wide program. More than 1,100 worksites participate in the CTR Program statewide. In Spokane County, 111 worksites are part of the CTR program, including 12 worksites participating voluntarily. CTR will become more valuable With population growth in Spokane County projected to grow by over 35% in the next 20 years, and the planned cuts to local transit service as a result of the passage of Initiative 695, the importance of the CTR Program for managing demand on the transportation system is greatly increased. Benefits of a Comprehensive CTR Program in Spokane County: 1. Maintain consistency with implementation of CTR county -wide — this consistency has led to a highly successful program with SOV & VMT reductions which are among the lowest in the state. With identical CTR Ordinances in each jurisdiction, employer requirements are easy to follow and seamless support is offered to all employers by trained and knowledgeable Spokane County CTR Office staff. 2. Efficient use of public funds — Spokane County has successfully performed all CTR implementation activities on behalf of each affected jurisdiction using consolidated funding. By pooling all CTR funding in Spokane County, these funds are used most efficiently to offer services to employers rather than spent on duplicate tasks and coordination among local jurisdictions. The services and support provided by Spokane County are an excellent value and enable affected cities to fulfill the legal obligations of CTR Law in an efficient and professional manner. (Spend average $150 per month per worksite; $14,500 total per month) 3. Revenue- neutral — the agreement transfers funding back to Spokane County to perform CTR services. If a city were to assume CTR activities, state funding would flow on a reimbursement basis through the County only for CTR- specific activities performed by the City on behalf of affected worksites. State CTR funding is to be used for expenditures on CTR activities which are offered to all affected employers. CTR activities are defined as TDM in nature. TSM activities (expanding capacity) are not eligible for CTR funds. 4. Impact onrJurisdiction — the state requires many administrative activities to be performed by local jurisdictions (outlined in CTR Law and in current WSDOT agreement). Cities would need to adjust staffing, secure staff training, allow for a learning curve and provide financial support to meet requirements. 5. Continue Successful CTR Program — Spokane County provides extensive, professional CTR services for all affected jurisdictions and their employers and has been doing so with award - winning success for nearly 10 years. This includes services to cities which must have internal CTR programs. The current program is well - received by employers, who have come to expect a broad array of services including training, promotions, products and on -going support. A comprehensive employer questionnaire fielded in June 2002 indicated high satisfaction with the level of service and support by Spokane County. The following activities are performed by Spokane County CTR Office staff_ Administration Coordinate and Perform Annual Program Review - Distribute program forms to all affected employers annually on 7 schedules - Collect completed forms Follow up on missing or incomplete programs Review programs Approve /Disapprove programs Required modifications to programs Maintain two state - certified program reviewers on staff Administer Survey Process - Baseline and interim surveys Coordinate with State and University of Washington Update state database Goal year measurement surveys on 7 schedules Review and analyze survey results - Return survey forms and report to employers Maintain supply of survey forms and provide to employers - Administer the optional on -line survey process Update CTR Ordinances - Meet with local jurisdictions to review proposed ordinance and process Prepare updated Ordinance and related documentation Bubmit'Ordinances to State for review - Attend Council meetings and Public Hearings Complete State Reporting - Track activities by category Write quarterly reports of past activities completed and future plans Prepare quarterly invoice Prepare annual Jurisdiction Cost Survey Maintain Employer Database and Records - Design and maintain CTR database (worksite and training) - Maintain annual worksite files containing key documents and correspondence - Update electronic and written records, as necessary - Provide records to State on quarterly basis Identify Affected Employers - Complete annual mailing to potentially- affected employers - Document affected /non affected status (if no longer affected) Establish implernentation timeline for newly-affected Conduct baseline survey Assist with development of worksite CTR Program Monitor Employer Compliance - Monitor to ensure implementation of approved program and meeting deadlines Active monitoring of employers with required program changes Review periodic employer reporting of activities throughout year Monitor and document required employer good faith effort Schedule and complete site visits to ensure implementation and compliance Write non - compliance letters, as necessary Maintain written records of compliance /good faith effort Review Employer Requests for Modifications and Exemptions Analyze and take action on employer requests for modifications /exemptions Approve /disapprove requests, as warranted Maintain records of all requests - Consult with State on all employer requests for modifications and exemptions Tract CTR Expenses Establish and maintain internal CTR account and cost tracking system Monitor internal accounting system to ensure accuracy Report to State according to specific categories on quarterly basis Maintain accurate, sufficient records in preparation for potential audit - Establish and monitor CTR budget to ensure adequate funding coverage Maintain Employer Appeals Process - Establish and maintain employer appeals process as per Ordinance - Communicate appeals process to employers, as necessary Track Statewide CTR Issues and Implement Changes Participate on state -wide level in 10 County CTR meetings and CTR Task Force Monitor CTR issues /changes and provide written comments Implement required changes to CTR Law at local level Notify all employers of goal modification process Participate in local implementation of statewide public awareness program Facilitate credit for shifting employees outside commute window EMPLOYER OUTREACH & SUPPORT Work Site Visits - Complete at least one visit to each affected worksite per year - Respond to employer requests for site visits - Attend all worksite Transportation, Health and Benefits Fairs, as requested - Meet with ETC, manager, committee to discuss CTR and tour facility Technical Assistance - Respond to technical questions by employers - Assist with worksite survey planning, administration and analysis - Research technical issue to provide complete, accurate answer Meetings and Presentations - With management to gain support for CTR - With committees to educate about CTR - With employees to promote commute alternatives Local Resource for CTR and TDM information Stay abreast of latest CTR and TDM developments in state and country Respond to requests for a variety of information Send written information to employers requesting information Refer specific questions to appropriate agency, if not Spokane County Distribute statewide CTR and TDM information at local level Telephone, E -Mail and Written Correspondence - Provide telephone, e-mail and written support to employers, as needed - Write letters, reports and memos to employers with pertinent information - Respond to specific requests for targeted letters to management - Document key actions with written correspondence Monitor Employer Needs Results - Draft and field periodic Employer Questionnaire to determine desired services Assess employer satisfaction with types of services offered and make revisions Tabulate questionnaires and use results to frame upcoming activities - Draft and field periodic, topic - specific questionnaires, as necessary EMPLOYER TRAINING Administration Plan, coordinate and deliver all employer training programs at no cost to employer Identify location and coordinate facilities, refreshments, set up, etc. Prepare all training materials including manual, Power Point presentations, handouts, overheads, flip charts Promote training course to employers and recruit among targeted group - Track registration, send confirmation notices and prepare certificates Maintain state - qualified trainers on staff to deliver training courses - Maintain records of training attendees Basic ETC Training Course Two -day course provided at least twice each year - Course workbook updated prior to each course Advanced ETC Training Courses - Offered to anyone completing the Basic ETC Training Course - Advanced ETC Training Course — one - day course provided once per year Mini - Workshops Typically 3 -hour workshops developed by Spokane County staff Offered periodically on topic - specific issues as they arise, such as: - Transit 101 — in conjunction with Spokane Transit - CTR Survey Workshop - Spokane GRH Orientation Course — 2 -hour course offered as needed - CTR Information Workshop - CTR Committee training at worksite TECHNICAL SERVICES Employee Home Locator Maps (GIS) Utilize Spokane County's extensive Geographic Information System (GIS) Generate map of employee home addresses for employers, upon request Create maps in two sizes with multiple shifts and other customized features Offer service free to all employers on a yearly basis - One -week (or less) turnaround for map from disk with correct formatting RIDEMATCHING SERVICES TransMatch 2.0 Free employee ridematching through computerized regional database On -line or hard copy TransMatch application available Personalized ridematch letter to applicant Special "batch matching" of employees by worksite, upon request Maintain, update and purge database quarterly Provide reports to employers listing employee activity Sponsor Bi- Annual TransMatch application drive in March and September Design, print and distribute full assortment of TransMatch marketing materials Enhance services to meet employer needs EDUCATIONAL MATERIALS For Employee Transportation Coordinator On -line CTR News Telecommuting Guidebook and Training Kit Camera -ready educational tools for reproduction Pre - printed brochures and posters Video Library available for worksite use Complete set of collateral materials for many Spokane County programs On -going creation of additional educational/training materials for ETCs For Employee - Do- it- Yourself Carpool Guide Do -it- Yourself Vanpool Guide Flyers Brochures Cost/Air Savings Worksheets ETC NETWORKING Administration Plan and coordinate series of four to six ETC Networking Lunches yearly - Secure location and coordinate facilities, lunch menus, set up, etc. Prepare series of three flyers to promote each lunch and send to targeted group Tract registration, perform follow up calls and prepare sign -in sheets & name tags Maintain records of luncheon attendees Send information about lunch topic(s) to missing ETCs Topics and Programs - Identify specific topic(s) for each luncheon series and prepare agenda - Recruit guest speakers, as appropriate - Prepare and present specific topics, overheads, flip charts, etc. - Prepare all materials for attendees including handouts, packets and other materials SPOKANE'S GUARANTEED RIDE HOME (GRH) PROGRAM GRH Program Administration Award - winning program available to all affected employers in Spokane County Employer participating in turn -key program pays for taxi rides used by employees Generate annual contracts with participating employers Generate and monitor annual contract with Spokane Cab to provide taxi services Provide GRH program to all participating state agencies, paid for by G.A. Develop, maintain and update customized GRH database to track all activity - Review monthly Spokane Cab invoices with worksite records and pay Track employer "bank account" balance and invoice, as necessary Maintain separate records for each employer and generate quarterly reports - Update and provide list of Authorized GRH Coordinators to Spokane Cab GRH Program Training - Participating employer must identify at least two employees to complete training - Provide two -hour Orientation Course as required step to join program - Write and publish comprehensive Employer Guide to program - Deliver mini - Orientation Course (one -hour) at worksites, as requested GRH Program Promotion - Create Information Kit which describes program and includes registration form Develop program logo to create identity for program Create family of educational and promotional materials for program Develop and provide camera -ready marketing materials to participating employers Write sample newsletter articles Promote program to state agencies and other employers who may wish to join Measure program results with periodic questionnaires and other user - specific research CTR RECOGNITION PROGRAM: "Way to Go Awards" Administration - Award - winning program offered to all CTR - affected and voluntary employers in Spokane County Create and manage county -wide CTR Recognition Program Recruit and facilitate employer committee to develop program Document program and process for administrative purposes Run quarterly nomination process to identify individuals and ETCs to honor Select ETC to honor quarterly (All Star Coach) Develop criteria for Pinnacle Award (Employer) - Identify and select Pinnacle Award winners Participate locally in statewide CTR Recognition Program Employer Involvement - Submit nomination forms for commuting champions (Most Valuable Commuter) - Employer committee scores nominations and selects monthly MVC - Complete CTR Quarterly Accomplishments form - Employer committee assistance in developing criteria for Pinnacle Awards Public Recognition - Order and present awards to quarterly honorees at ETC Networking Lunches - Issue press releases about program to local media - Submit local honorees for statewide recognition program Annual "Way to Go Awards" Event - Plan, coordinate and host annual gala awards event in mid - January Identify location and coordinate facilities, refreshments, set up, etc. Prepare all event materials including awards, guest speakers, etc. Design and produce event invitations to all ETCs, Program Managers and CEOs Track RSVPs, place follow up phone calls and prepare name tags and sign -in sheets Invite media and elected officials Present Pinnacle Awards to up to three outstanding employers Honor All Star Coaches and Most Valuable Commuters from past year Present awards to employers who measured and met CTR goals during past year PROMOTIONAL SERVICES Commuting Options Boards Clear, plexiglass information board designed for wall mounting at a worksite Helps employer meet requirement to post ETC name and phone number Holds brochures, flyers, posters and other CTR information One free board provided to each affected worksite On -going distribution of information ETC Planner Spiral -bound promotional planner for ETCs to plan and track marketing efforts Produced for ETCs annually Calendar of CTR - related events CD which includes a variety of promotional ideas and themes, camera -ready flyers, and facts Resources to plan and implement transportation fairs List of resources for CTR/TDM- related agencies Transportation Fairs - Assistance planning and coordinating worksite transportation fairs - Attend fairs with Spokane County CTR display, customized for worksite - Distribute commuting information and small prizes Reserved Employee Rideshare Parking Signs - Top quality signs produced and ready for sale to interested worksites for $14 each - Designed to be installed on post, wall or fence - Allows room for worksite to customize sign with car /vanpool number or other info. CTR Website — Informational resource for commute trip reduction in Spokane County www.spokanecounty.org /ctr REGIONAL PROMOTIONAL CAMPAIGNS Administration - Create, plan, implement and coordinate three annual regional campaigns - Prepare information for employers and track promotion registration - Identify worksite and county -wide giveaways, prizes and other incentives Create and produce all promotional materials including employer promotions planning kit, brochures, posters, payroll stuffers, newsletter articles, etc_ Promote campaign among employers and encourage participation - Collect and measure results of each regional promotion Complete campaign with printed materials publicizing results - New, on -fine participation calendar available at www,mycommute_org Regional Promotional Campaigns - Smart l'4cves uring the month of April - Summer Solutions —three month (June, July, August) summer event that features an on -fine tracking calendar - Washington State Rideshare Week(s) — two weeks in mid - October Voluntary Employer Campaigns - "Air atch' — Early CO alert program with SCAPCA (November -- February) - Car Care Month — Sponsored by SCAPCA in October PARTNERS FOR SMART COMMUTING Local Partners - Group of five public agencies working together to increase public awareness of commute alternatives Create and implement special projects: school prograrns, employer services and media campaigns Distribute public service announcements to local television stations and track results Local Partners are Spokane County GTR Office, Spokane Transit, Spokane County Air Pollution Control Authority, Spokane Regional Transportation Council and Washington State Dept. of Transportation State Partners - Group of over 25 public agencies in Washington, Oregon, Idaho, Montanan and Utah working together to increase public awareness of commute alternatives via pooled funding /resources Create and produce public service announcements for use in local media markets Design, produce and distribute variety of printed materials including posters, brochures and flyers Spokane members of State Partners include: Spokane County CTR Office and Spokane Transit (annual financial contribution) Spokane Valley Planning Commission Approved Minutes Council Chambers – City Hall 11707 E. Sprague Ave. September 11, 2003 1. CALL TO ORDER 13111 Gothmann, Planning Commission Chair, called the meeting to order at 6:33 p.m. 11. PLEDGE OF ALLEGIANCE After a moment of silence in memory of the people who lost their lives on September 11, 2001, the Commission and audience recited the Pledge of Allegiance. 111. ROLL CALL Fred Beaulac – Present Bob ]alum – Present David Crosby – Present Gail Kogle – Approved Absence Bill Gothmann – Present Ian Robertson – Present John G. Carroll - Present IV. APPROVAL OF AGENDA Commissioner Robertson moved that the agenda be approved as presenter. Commissioner Beaulac seconded the motion. Motion passed unanimously. V. APPROVAL OF MINUTES Commissioner Gothmann requested that several small corrections be made to the minutes of the August 28, 2003 Public Hearing. It was moved by Commissioner Crosby and seconded by Commissioner Blunt that the minutes of the August 28, 2003. Planning Commission meeting be approved as amended. Motion passed unanimously. VI. PUBLIC COMMENT There was no public comment. VIT. COMMISSION — R PORTS Commissioner Crosby: Reported on a Light Rail meeting that was held in the Council Chambers earlier today. He was one of three Commissioners who attended, and found it interesting to hear what the City of Spokane has in mind for the Light Rail project. The City of Spokane has expanded the scope of the project to all mass transit, including buses. Mr. Crosby was pleased to learn of the number of stops planned for the City of Spokane Valley. Mr. Crosby will be unable to attend the next Planning Commission meeting on Thursday, September 25, 2003. Chairman Gothmann: Reported on the September 9, 2003, City Council meeting. The Zoning Code Compliance Ordinance was presented to the City Council for the second time, and was passed. The Junk Vehicle Ordinance had its first reading. The Council complimented the Planning Commission on its good work with the Junk Vehicle Ordinance. VIII. ADMINISTRATIVE REPORT Marina Sukup, Director, reported that a Uniform Land Development Code is in the development process. The Planning Commission will discuss the Unified Code before submittal to the City Council. IX. COMMISSION BUSINESS A. OLD BUSINESS: Continuation of August 28, 2003, Public Hearing – Annual Comprehensive Plan Amendment - -- CPA -03 -05 The Chair declared a continuation of the August 28, 2003 Public .Hearing to Consider Annual Comprehensive Plan Amendment — CPA -03 -05 open at 6:48 p.m. Members of the public were encouraged to fill out a card if they wished to sign in or speak for or against the amendment. Chairman Gothmann read Section 9.B from the City of Spokane Valley Planning Commission Rules of Procedure, regarding the rules of order for conduct at public hearings. Greg McCormick provided the Commission with an overview of the original Comprehensive Plan Amendment 03 -05 and its evolution. Since the Planning Commission's Public Hearing on August 28, 2003, staff has met with the applicant's representative to discuss zoning and land use alternatives. Staff. Recommendation: Staff recommends changing the southern portion of the parcel to Medium Density Residential, designating that portion as an Urban Residential 12 (UR -12) Zone. Business and professional offices are allowed uses within this zone designation so construction of the applicant's business office would be allowed. Staff further recommends retaining the Low Density Residential land use designation and UR -3.5 Zoning on the northern portion of the parcel. Commissioner Crosby asked Mr. McCormick if there would be anything stopping the property owner from returning to the Planning Commission with another zone change request for the southern portion of the parcel, since it is surrounded by other parcels that are zoned UR -12 and UR -22. 2 Mr. McCormick explained that the property owner has the right to request rezone of that parcel at any time during the annual Comprehensive Plan Amendment process. Applicant Testimony: Dwight Eiunie, 9101 N. Mt. View Lane, Spokane, WA Mr. Hume appeared as a representative for Lexington Homes, and spoke in favor of the staff recommendation. I•Ie believes this alternative staff recommendation will work for the property owner. By changing the zoning of the northern parcel to UR -12, the usage of the land will be limited and the traffic impact will be felt only on Broadway which is a major thoroughfare. Public Testimony: Planning Commission Vice-Chairman Robertson stated that he received forty- eight (48) cards from citizens present who oppose CPA- 03 -05. Ten (10) citizens affirmed their desire to speak, twenty -four (24) citizens did not wish to speak; and fourteen (14) citizens did not specify whether they wished to speak or not. The following citizens in attendance testified at the meeting: Kathy Stoy, 1.104 N. Perrino, Spokane Valley, WA Mrs. Stoy handed staff: a 2002 WSDOT Traffic Count Report on the area in question. She explained that her first concern regarding this rezone request is the potential increase of traffic in her residential neighborhood — especially on Cataldo Avenue. In addition, Mrs. Stoy wanted to know if the property owner planned to build a single office or an office complex, and what the acreage breakdown was between what would be zoned UR- 12 and what would be zoned UR -3.5. She read a letter from her neighbor, Donald Sommers who opposed rezone of the entire parcel because of his concern about more traffic. Staff calculated the acreage breakdown as 1.48 acres in the northern parcel, and 1.52 acres in the southern parcel. Joe Stoy, 1104 N. "'ermine, Spokane Valley, WA Mr. Stoy had a problem with the adjusted rezoning of the southern parcel of the property to UR. -12, and believes that this zone is not a proper one in which to build a contractor's office. Conunissioner Gotlunann explained that the Planning Commission makes the zoning decision, the property owner makes the land usage decision. Gust Abariotes, 11708 E. Cataldo, Spokane Valley, WA Mr. Abariotes confirmed that his primary concern is heightened traffic in this quiet residential neighborhood. FIe read a letter from his neighbor, Helen Carroll, who is also concerned about the potential for too much traffic. .Timmy D. Parker, 12103 E. Boone, Spokane Valley, WA Mr. Parker has lived in his home for over 25 years. He believes there have been problems in the past with land usage issues, and thinks that traffic and speeding are results of apartment buildings being built on the quiet residential street of Cataldo. Phyllis Moss, 11822 E. Boone, Spokane Valley, WA Mrs. Moss lives on the corner of Cataldo and Wilbur, and has almost been hit by cars speeding through that intersection. She is very concerned about the traffic problem. Leon Moss, 11822 E. Boone, Spokane Valley, WA Mr. Moss' family has lived in this home for 34 years. There is a problem with high -speed traffic in this low density residential neighborhood. He'is against rezoning. Wilma Belcher, N. 1005 Pcrrine, Spokane Valley, WA Mrs. Belcher lives directly north of the land in question. She is concerned that the landowner will submit a rezone request, and she asked what would happen if he did. Director Marina Sukup explained that if the landowner submitted a rezone request, it would have to be re- posted, re- signed and re- heard. Carol Rell, 1012 N. Perrinc Road, Spokane Valley, WA Ms. Rell has lived in her home for 32 years. She fears for the safety of the little kids in the neighborhood and doesn't understand why the neighborhood has to change. The landowner has plenty of money to build wherever he wants to, but the people in her neighborhood do not have enough money to move or to protect their interests. Chris Keener, 1010 N. Fox Road, Spokane Valley, WA Mr. Keener has problems with the zoning changes, noting that connection to the sewers cost individual property owners 57,000, and that he expected a loss in property values as a result of the rezoning. In addition, he is concerned about the area children, since there are no sidewalks on Cataldo and the kids have to walk on the streets with the speeding cars to get from one place to another. Clarion Bergland, 1018 N. Fox Road, Spokane Valley, WA Mr, Bergland read a letter from his neighbor, Lonnie Allard, concerning the traffic in their neighborhood. Mr. Bern. land is concerned that the owner of the subject property will come back to try to change the UR -12 zoning right away. Carol Nicholson, N. 1105 Perrine, Spokane Valley, WA He read a note from his neighbor, Robert Gell, who is opposed to building more apartments on the subject property. Ms. Nicholson is concerned that the high density residential zoning will creep up on that little northern strip of land. She appealed to the Planning Commission not to make a decision that would negatively impact so many residents for the financial gain of this landowner. Kathleen Seeger, 1108 N. Perrine, Spokane Valley, WA Mrs. Seeger has lived in her home for 22 years. She react a letter from her neighbor, Anna Amarin, regarding the problems with traffic, drugs and theft since apartment houses were built on Cataldo. Mrs. Seeger doesn't want her new grandchild to be endangered by the increased traffic problems. Nancy Kent, 812 N. Wilbur Road, Spokane Valley, WA Ms. Kent's parents have lived in their home for 30 years. She moved into the house across the street from them because she loves the neighborhood. It used to be safe for children, but when the first low- income housing project was built the traffic, drug and crime problems began. IVlickie Thomas, N. 1105 Fox Road, Spokane Valley, WA The Thomas family just purchased thew home a year ago. Mr. Thomas is opposed to the rezone request because he believes the neighborhood won't be safe if the zoning allows for more people to live in a small space. Richard T. White, 1003 N. Fox, Spokane Valley, WA Mr. White is a newlytived who lives with his wife on the corner of Cataldo and Fox. The quiet neighborhood appealed to them, but it won't remain quiet when construction noises begin. He is very much opposed to CPA - 03 -05, and reminded the Planning Commission that they exist as a group to represent the people. James Renggli, 1018 N. Perrine, Spokane Valley, WA Mr. Renggli was concerned because he received an email earlier in the week explaining that even if the Planning Commission voted in favor of the staff recommendation for a split of the property with half remaining UR -3.5 and the other half being rezoned to UR -12, the City Council could reject. the Commission's recommendation and resurrect the applicant's original request for approval to rezone the entire property for high density residential. Director Sukup explained to Mr. Renggli that the City Council would not hear a different rezone request than the one the Planning Commission approves for recornmendation to the Council. lithe Council does not approve what the Planning Commission submits, the Council will send CPA -03 -05 back to the Commission for reconsideration. Martha Bayle, 908 N. Wilbur, Spokane Valley, WA Ms. Bayle reminded the Commission that its job is to represent the wishes of the people. She was angry that she and so many others had to appear before the Commission a second time. Velma Marion, 1017 N. Wilbur, Spokane Valley, WA Ms. Marion was unable to attend the hearing, but sent a hand- written letter in opposition to CPA -03 -05 to be added to the public record. She doesn't like the increase in traffic in her neighborhood, and considers the corner at Cataldo and Wilbur a death trap. The following citizens in attendance did not speak, but opposed the alternative CPA -03 -05 proposal by signing public hearing cards: Marilyn Tiffany, N. 1108 Fox Road, Spokane Valley, WA Lloyd Tiffany, N. 1108 Fox Road, Spokane Valley, WA Richard Thomas, N. 1105 Fox Road, Spokane Valley, WA Mike Ota, N. 1013 Perrine, Spokane Valley, WA Tonya Ota, N. 1013 Perrine, Spokane Valley, WA Johnny Belcher, N. 1005 Perrine, Spokane Valley, WA Karen Renggli, 1018 N. Perrine, Spokane Valley, WA Charles A. Cato, 1108 N. Wilbur, Spokane Valley, WA Phyllis Cato, 1108 N. Wilbur Road, Spokane Valley, WA Linda Sweet, 803 N. Wilbur, Spokane Valley, WA Gary Sweet, 803 N. Wilbur, Spokane Valley, WA Tom Nicholson, N. 1105 Perrino, Spokane Valley, WA Joyce Fromhold, 12117 E. Boone, Spokane Valley, WA William Pierce, 1.1902 E. Boone, Spokane Valley, WA L.G. Barrett, 1020 N. Wilbur Road, Spokane Valley, WA Sharry White, 1003 N. Fox Road, Spokane Valley, WA Joel Rell, W. 1012 Perrine Road, Spokane Valley, WA Janice L. Davis, 11908 E. Boone Ave., Spokane Valley, WA Michael L. Davis, 11908 E. Boone Ave., Spokane Valley, WA Judy Bergland, 1018 N. Fox Road, Spokane Valley, WA Lani Morgan, 1011 N. Fox Road, Spokane Valley, WA Betty V. Purkett, 1106 N. Fox Road, Spokane Valley, WA Marla Jo Harper, 1019 N. Perrine, Spokane Valley, WA Duane Harper, 1 019 N. Perrmme, Spokane Valley, WA. Robert Seger, 1108 N. Perriinc Road, Spokane Valley, W ► 7+r•ancew Warren, 11722 E. Cataldo, Spokane Valley, WA Larry W. Kent, N. 812 Wilbur Road, Spokane Valley, WA Donald & Luella Hartley, 1.1707 E. Broadway, Spokane Valley, WA Steve Devaney, 10].8 N, Bats Road, Spokane Valley, WA Pat Rue., ,1004 N. 'lox Road, Spokane Valley, WA W.D, Parker, 1.004 N. Fax Road, Spokane Valley, WA Randy Ross, E. 12022 Boone, Spokane Valley, WA Walter Marion, 7.017 N. Wilbur, Spokane Valley, WA Chairman Cotlunann closed the bearing for PA -0305 to further public testimony. The Caininission discussed the most recent staff' recommendation for CPA- 03 -05. Commissioner Blum voiced his reservations about the applicant's request to rezone the subject property. Commissioner Crosby believes that the Commission is simply delaying the inevitable by zoning only the southern section UR -12 this year, and thinks the entire parcel should be zoned RJR -22 now. Commissioner Robertson briefly spoke to the citizens in attendance regarding their collective strength and how to best utilize it for the purpose of reducing traffic problems crime and drugs in their neighborhood. ConuDissioner Carroll agreed \vith Commissioner Crosby that this clash between developers and established neighborhoods will be common during the period of new growth and development in the City. .1J1 -2 in this area ruay be inevitable, hut will surer he slowed down by the adjusted staff recommendation for CPA-03-05, Commissioner Icm Robertson moved that the Planning Commis,s • approve the staff recommendation to 'change the southern. portion of the parcel to Medium Dens.4 Residential and impielinent the UR -12 Zone; and to retain the Low Density Residential bind use designation and UR- 3,5 Zoning on the northern portion of the parcel. The motion was seconded by Coinmissioner Beauii.c. Commissioners Beaulac, Carroll, G'oti :mann and Robertson voted in favor of the motion. Commissioners Blum and Crosby voted in. opposition, Motion passed 4 -2. Commissioner Robertson told the citizens in. attendance not to think of this as the end of the road for their community efforts. I•Ie encouraged them to try working out a goad compromise with the property owner. Chairman Gothrnann closed the Public Hearing at 7 :51 p.m- The Commission took a break. a1.8:00 p.ni. Mr. Robertson noted the he and Mr. Gothmaaui met with the Dishman Hills association to discuss potential purchase of property along Appleway. Upon the Commission's return from break, Commissioner Blum wished to state for the record that the Planning Commission is not working with the Dishanan Hills Natural Association, A group of concerned citizens, not an ad -hoc committee of the Commission, have met with parties associated with CPA.- 03 -02. B. NEW BUSINESS: Comprehensive Plan: Transportation Element presentation Director Sukup provided the Commission with a slide show detailing the development process for a transportation element in the Comprehensive Plan. She explained that the Transportation and Land Use elements are closely connected, and of vital importance to the Comp Plan. Comprehensive Plan: Public Participation Program 1r. McCormick explained that the Growth 1vianagernent Act requires adoption of a Public Participation Program. The Planning Commission plays a key role in the process by acting as a liaison between citizens and the City Council, He reviewed the draft plan_ Commissioner C'ro.vby moved, and Commissioner Carroll seconded, a motion to approve the proposed recommendations for a Comprehensive Plan Public .Participation Program:. Motion passed unanimously. Adult Oriented Busine Briefing Scott Tuhta, Associate Planner, provided the Commission with a slide show which covered the background and proposed future actions regarding this issue. The City Council extended a moratorium on siting new adult oriented businesses for six additional months, now set to expire March 2, 2004. This extension allows sufficient time For the Planning Commission to recom.nlend changes to the siting standards ofthc Zoning Code_ The City Council also extended the amortization period one additional year, now set to expire. September 7, 2005. A public hearing on proposed Zoning Code revisions is tentatively scheduled for October 9, 2003, to allow sufficient time to issue a SEPA determination and provide adequate public hearing notice. Planning staff developed three options for the Commission to consider sending to a public hearing. Upon direction of the Commission, staff will prepare a draft Zoning Code. Amendment for a public hearing. Staff recommendation: The staff recommends Zoning Option 2, which deletes the amortization provisions from the Zoning Code, while keeping 8 the siting standards in place. This option is supported by both Planning and Legal staff. If the City adopts this option, the four existing Adult Retail Use Establishments will be allowed to remain at their current locations. They will be considered legal nonconforming uses under the existing Zoning Code. This option will not require the City to amend siting standards to create new areas zoned for adult businesses. Adoption of this option will result in a low probability of the City facing legal challenge. The Commission requested that staff perform a survey of the three potential sites for future location of new adult oriented businesses, and to report back to them if a serious problem with any of these existing parcels of land is perceived. It was moved by Commissioner .Blum, and seconded by Commissioner Crosby, that the Planning Commission recommend Option 2, maintaining a buffer radius of 1,000 feet, to the City Councillor public hearing. Motion passed unanimously. X. FOR THE GOOD OF THE ORDER Commissioner Robertson: Stated for the record that if the City Council approves the Junk Car Ordinance, the City of Spokane Valley will need more enforcement staff in 2004. Commissioner Beaulac: Pointed out to the Conunission that its meeting on the fourth Thursday of November would be precluded by Thanksgiving. The meeting on the fourth Thursday of December would be precluded by Christmas. He requested that staff look into the possibility of holding November and December Commission meetings on the first and third Thursdays of the month. Commissioner Carroll: Expressed his growing concern over the last few public hearings. When public testimony is concluded, the discussion of the Commissioners should not be directed to the audience, but to each other. Commissioner Blum: Is concerned about the Open Public Meetings Act. He requested verification regarding the regulation stating that more than three Commissioners should not meet together without posting a formal meeting notice. Chairman Gothmann confirmed that it is improper and illegal for a quorum (4) or more Commissioners to gather at a public meeting or event without posting a meeting notice in advance. Commissioner Crosby: Requested confirmation regarding Conunissioners' terms of office. Whose term expires on what date of 9 XI. ADJOURNMENT There being no further business, the meeting was adjourned at 9:13 p.m. SUBMITTED: APPROVED: Debi Alley Administrative Assistant which year? Ide also expressed a desire to have a photo taken of the Planning Commission and the Planning staff at the dais. 1 0 Bill Gothmann Chairman 4 Spokane Valley Planning Commission Approved Minutes Council Chambers — City Hall 11707 E. Sprague Avc. September 25, 2003 CALL TO ORDER Bill Gothmann, Planning Commission Chair, called the meeting to order at 6:31 p.m. 11. PLEDGE OF ALLEGIA.NCE The Commission and staff recited the Pledge of Allegiance. III. ROLL CALL Fred Beaulac — Present Bob Blum — Present David Crosby — Excused Absence Gail K.ogle — Present VI. PUBLIC COMMENT There was no public comment. Bill Gothmann — Present Ian Robertson — Excused Absence John G. Carroll - Present 1V. APPROVAL OF AGENDA Commissioner Beaulac moved that the agenda be approved as presented. Commissioner Kogle seconded the motion. Motion passed unanimously. V. APPROVAL OF MINUTES Commissioner Beaulac requested that the September 11, 2003 draft minutes be corrected on Page 9 to read... "... its meeting on the fourth Thursday of November would be precluded by Thanksgiving. The meeting on the fourth Thursday of December would be precluded by Christmas. "... It was moved by Connnissioner Gothmann and seconded by Commissioner Beaulac that the minutes of the September 1,1, 2003 Planning Commission meeting be approved as amended. Motion passed unanimously. VIl. COMMISSION REPORTS Commissioners Gothmann, Kogle and Beaulac briefly reported on their attendance at the past two City Council meetings and the University City property owners' visioning session. The City is trying to raise $18,000 to purchase a large artificial tree which would be used for a Tree Lighting Ceremony in the University? City parking lot on December 4, 2003. Donations can be made to the American West Bank's Spokane Valley Tree Fund. Commissioner John C. Carroll stated that he would not be in attendance at the Planning Commission's regular meeting on October 23, 2003. Vili, ADMINISTRATIVE REPORT Community Development Director, Marina Sukup reported that she attended the Crowd, Management Steering Committee meeting earlier in the week. Liberty Lake wants to annex up to the Valley's eastern border. The Valley has some issues with their proposal, and it will be revisited. A quorum was not present for a vote- A joint meeting of the City Council and Planning Commission has been tentatively set for October 30, and is awaiting approval by the City Council, If that date doesn't work, the joint meeting may be scheduled for Thursday, November 6. Commissioners asked staff to notify them of the actual date as soon as possible. The terms ofP[aiming Commission members will be discussed at the upcoming City Council Study Session. Planning staff` checked with Council records and found the terms and expiration dates, but no effective year., The unanswered question is: Will Commissioners serve their first term through December 3) of 2003 or 2004? Ms. Sukup noted that a landscape architect who also teaches wished to discuss the possibility of using the University City as a classroom project. Scheduling of a joint Planning Commission meeting with the County and the City of Spokane is still pending, and was tentatively set for October 13, However, because the Washington State APA is meeting in Spokane on that date, attendance might be limited. Associate Planner, Scott Kuhta, agreed to check on the availability of budget funds to pay for Commissioners' registration to the A.PA Conference, 1. COMMISSION BUSINESS A. OLD BUSINESS: Discussion of meeting schedule for November & December 2003 Director Sukup proposed that the Planning Commission meetings scheduled for Thanksgiving and Christmas Day be rescheduled for Thursday, November 20, 2003 and Thursday, December 18, 2003. The Commission agreed to these dates. The change in meeting schedule will be publicly post€;d. B. NEW BUSINES S: Critical Areas/ Shorelines Presentation Director Sukup presented a slide show to Commissioners regarding Critical Areas and Shoreline Management- 2 Debi Alley Administrative Assistant Long Range Planning Manager, Greg McCormick, explained that the Department of Ecology is involved in shoreline issues more than in any other component of the Comp Plan. The City of Spokane Valley adopted the County's Shoreline Master Program upon incorporation. The County is scheduled to receive a large grant to rework the program, and the Valley will work with them to help reclassify shoreline designations. Critical Areas are separate from the shoreline, and include wetlands, critical aquifer recharge areas, frequently flooded areas, geologically hazardous areas, and fish and wildlife habitat conservation areas. Spokane County has one of the best Critical Areas Ordinances in the Pacific Northwest, so the Valley will continue working with them in this area as well. Open M.cctings Act Discussion Cary Driskell was unable to attend this meeting to explain the Open Meetings Act with the Commission. Mayor DeVleming was present, and he spoke to the Commission regarding their presence at public meetings. If a quorum (four or more) of Commissioners wishes to attend the same public event or meeting, then a meeting notice must be posted at least 24 hours in advance. The Mayor would like. Planning Commissioners to be involved in everything the City does, and does not want this extra step to inhibit their involvement. In the future, if a Planning Commissioner wishes to attend a public meeting or event, s /he can call Mr. Kuhta, Mr. McCormick or Ms. Sukup. They will track attendance at different functions, and will notify the City Clerk if a quorum will be in attendance so a public notice can be posted. Definitions Section — Unified Development Code Discussion A 24 -page definitions section for the Unified Development Code was sent to Commissioners. Director Sukup asked them for their feedback. During a brief discussion, several changes were made to the original document. X. FOR. THE GOOD OF THE; ORDER There were no statements, continents or questions at this time. X1. ADJOURNMENT There being no further business, the meeting was adjourned at 8:10 p.m. SUBMITTED: APPROVED: 3 Bill Gothmmann Chairman Meeting Date: October 14, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent ® information CITY OF SPOKANE VALLEY Request for Council Action ❑ old business ❑ admin. report ❑ new business ❑ public hearing ❑ pending legislation AGENDA ITEM TITLE: INFORMATION ONLY Staff Findings for 4110 South Hollow Court GOVERNING LEGISLATION: Zoning Code and Building Code PREVIOUS COUNCIL ACTION TAKEN: None BACKGROUND: During the City Council's September 23, 2003 regular meeting, several citizens spoke to the Council regarding several concerns with building and land use actions at 4110 South Hollow Court. Per the City Council's request, building and planning staff investigated these concerns. Staff's findings are presented in the attached memorandum and associated attachments. OPTIONS: None Required RECOMMENDED ACTION OR MOTION: None BUDGET/FINANCIAL IMPACTS: None STAFF CONTACT: Kevin Snyder, Current Planning Manager/Torn Scholtens, Building Official ATTACHMENTS October 3, 2003 Findings Memorandum from Kevin Snyder, Current Planning Manager, with attachments si J s* . • valiey Memorandum To: City Council Nina Regor, Deputy City Manager From: Kevin Snyder, AICP, Current Planning Manager CC: Marina Sukup, AICP, Community Development Director Shop Building: Tom Scholtens, Building Official Chris Berg, Code Enforcement Officer Date: October 4, 2003 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 • Fax: 509.921.1008 ♦ cityhatl®spokanevalley.org Re: INFORMATION ONLY — Status of Activities at 4110 South Hollow Court At the City Council's September 23, 2003 regular meeting, several citizens spoke to the Council regarding several concerns with building and land use actions at 4110 South Hollow Court. Specifically, the citizens raised concerns about a shop being constructed at the property and the potential operation of a business at the property. Per the City Council's request, staff investigated the issues raised by the citizens and has identified the following: Several citizens expressed concern with the ultimate size of the shop currently under construction, which they stated was approximately 3,200 square feet in size. Staff investigated the permitting history for the shop and found: • The subject property has an existing single- family residence, is approximately 1.5 acres in size and is zoned Urban Residential -3.5 (UR -3.5). • The shop is classified by the City's Zoning.Code as an accessory land use to the primary use of the property, which is the existing single - family residence. • Section 14.616.220.7.a of the City's Zoning Code specifies that Tots that are 1 acre to 2 acres in size in the UR -3.5 zoning district are allowed to have accessory structures that do not exceed a total square footage of 4,000 square feet. • The City of Spokane Valley issued a building permit for the construction of a 3,200 square foot shop on April 1, 2003 (City of Spokane Valley Reference No. BD 03 -013 [see attached]). The City of Spokane Valley Building and Current Planning Divisions and the Spokane Regional Health District approved the building permit. • The City is currently conducting building inspection of the shop, which is currently under construction (see attached memorandum from Tom Scholtens, Building Official). Possible Commercial Business Use of Property: Several citizens stated that they believed that a commercial business is being conducted at the property, and indicated that up to three (3) trucks were regularly parked on the property. Chris Berg, Code Enforcement Officer, investigated these concerns and submitted a detailed report that is attached. In summary, Mr. Berg identified that Moose Automotive currently lists the property on both its business cards and in the telephone book as its business address. Mr. Berg further identified that the business is not currently being conducted from the site, and that the existing single - family residential home is not currently occupied as it is being remodeled. On October 4, 2003, I met with Mr. and Mrs. Ferrell, the owners of the subject property and the business owners of Moose Automotive. They stated that they had initially spoken with Spokane County prior to the City's incorporation, and had received information that led them to believe that a business use of the property would be allowed, provided they met certain standards. They stated that they are not currently living at the property, and that while they have installed a phone line for their business at the site, and have listed it as their business address, they are not currently running the business there. I advised Mr. and Mrs. Ferrell that based on their description of the business, they would need to demonstrate compliance to the City's home industry standards in order to be able to operate the business from the property. I reviewed the City's standards with them pertaining to a home industry (see attached), advised them of the need to receive an approved conditional use permit for the home industry prior to operating the business, and explained the City's conditional use permit procedures including the need for a public hearing before the City's Hearings Examiner. In addition, I provided them with the appropriate applications and applicable Zoning Code standards. Mr. and Mrs. Ferrell stated that they did not want to be in violation of City ordinances and would apply for the conditional use permit. I also inquired about the parking of vehicles at the property. Mr. Ferrell indicated that currently, he parks an unmarked 15 -foot cube or panel van at the property a few times a week. Mr. Ferrell asked if the parking of this van was acceptable as long as it was unmarked. I indicated that I would check with Mr. Berg on the matter, and get back to Mr. Ferrell with a response. In addition, Mr. Ferrell noted that the contractors who are working at the site will sometimes leave one or more pick -up trucks overnight in front of the property. Attachments: Attachment A: Attachment B: Attachment C: Attachment D: City of Spokane Valley Building Permit No. BD 03 -013 October 2, 2003 Memorandum from Tom Scholtens, Building Official October 2, 2003 Memorandum from Chris Berg, Code Enforcement Officer Home Industry Related Standards CITY OF SPOKANE VALLEY Bu ilding Permit . Information 1 cc l0 l i]e — 1 re to 'Permit holder - 1 cc. to Assessor SITE INFORMATION T Site address: '/ // S. (L i0 /J 04.0 CA Parcel number: 43- ) Subdivision.: Li Fair , ]s f r Zoning: _LAW ,W. Water District: Owner: Address: L !IC" r ] ( c) 6J- Cit ob, f ,�- t€Ite LU _ Zip Project flame: Sprinklers :' - Contractor _0_(- ' Incense # Occupancy Group - 1 Type of Construction Height ' Stories , _Total Square. Feet Z2,50 Category: - 1 (I= new, ?= remodel, 3= addition. 4= change of use, 5 =ter au.l: improvement, =mechanical., 7 =plurnbing. 9-= mobile home, 1O- dernotition, 1.1=Other Total code sr Ilue $ 4, t 0Q Permit Fee (, .5 Pl Review Fee $ 3 'L• }7 State Surcharge L- Surcharge $ Fire Fee Planning Fee Public Works Fee T017/.31, FEES 61, AMOUNT PREPAID $ TOTAL DUE $ ate 2'he issuance of this permit cues not imply complete approval, for constructions not in compliance with the codes and stan,daral.v. NOTES / CONDITIONS OP A.FPROVAL: BUILDING PERMIT No. Sb C3 - PROJECT lei �1t RMADON Permit use for: ZZOD �! Applicant: r /(. r` Address: _que, 44 6 4 0 c0J Coiitaet: ,T; S _ +'7- ('/-e41/1 ` ` F Phone #: - as-- Issued by; Fire Alarm ? Security Alarm 7 'Date -/- I ( U S. j 4 oc. 4uJ C:17 p S L TYPE- SA APPROV • f ut,-kr-g- ry� E LJ = MSES /Jr /46 r PrpPoS- 310. ra o S L16. o ►Sr106 /4 , K �.ff��J +- DINI Rao' Agocr)O l.= � a, = 1>o(43 1...t. CAR GARAGE a o� a.1 3,_ FAM►Ly R.ocM o L{, s 20 )( - 3 S i GAME. Ram M/; s rF_2 2d a CITY OF SPOKANE VALLEY APPROVED FOR SUBMITTAL Building PI nnin Via o� SITE PLAN OF RECORD gALL.) (S ti w►0E ��en1�1 i w•a 1.oNG C Du��Il"'V 0 LLa ) 7 _ i47 -t4RA 1 � G/;� kodi �t $, = LA.uNO pi Rn f o 9. mom's fk , A`)< 401 a, _ 2 ., c L Lox /0o 5,40P fgo f°s ed II. ld} j2., ?oo- go rr --) u -�c 9i, o ►.S e ./ x • 04/01/2003 16:29 5093241567 SRHD EHS PAGE 03 "17 2 ■F1 r y g/0 0._/4/ 7 2J- q S, H -ow c . u, c 01 F_/j&-1v c_f&c p e ufg; o 'F' 3 ' 3 U F6 t . So L-1 0 bt_or- f<<$''(.r • l t„) 0-autgfs. T-1 ` SOW& —* THESE PLANS MUST BE KEPT ON THE JOB SITE C7 02 3 To Pvea K 'DUN ?LA -7Ei wA 1 - - HE 147Hr 1y APPROVED BY O c (F -.AMY A0a) 1, (t s ;2. (Ra,F w< <L a y - , a 3, $ 3fU, 7 -/1/ �. f, .y Da° R-S 3 ." fl Fg.oM W t, crL S c.p ^.1r1 tic.rE.-0 u PPf2- SE-C ( -R.EA ES) O8 ( P Pooi`r n15-S 1.,,/v4 L-4- 0 • 04 GE..vrr—IL. F 2F p,r .N ENGIA ) &—►4-E-i N 7 c� .4414 'rt ras�` rbx prID 0 r1 0 I j Q . L 2 D P e / ' 7- 0 P PEAT �s� r�, wL1L SF�rio� c' F c T`v 1 13 0 71r-v-1 P W4TE (JA) E,trY Dank APPROVED BY Cr:Y) ( X4)(3 �r� ,3Y (p r,.i, k 41c RE vE4 RB ovE. q,41./9 0z, Legal Description FOREST MEADOW FIRST ADD L4 B1 Taxpayer MILLER, GENE 1 c/o Sales Sale Date Sale Price Salo Instrument Excise Number 12/1612002 $122,500.00 • Other 200221128 11/23/1998 $69,670.00 Real Estate Contract 980017715A 09/07/1990 $69,670.00 Other 980017715 05110/2002 $132,511.00 Trustee Deed 200208016 Owner 4110 S HOLLOW CT Sales History (prior to 1999) Qualified/ Vacant/ Sale Date Sale Price Sale Instrument Unqualified Improved 09/07/1990 $69,670.00 WARRANTY DEED Unqualified Improved 05/02/1986 $75,000.00 CONVERTED FROM SCM Unqualified Improved 10/26/1979 $65,900.00 CONVERTED FROM SCM Unqualified Improved 05/17/1978 $54,900.00 CONVERTED FROM SCM Unqualified Vacant 06/17/1977 $23,000.00 CONVERTED FROM SCM Unqualified Vacant Transfer RESIDENTIAL NORMAL SALE NORMAL SALE NORMAL SALE NORMAL SALE Verification FULFILL CONT VERIFIED VERIFIED VERIFIED VERIFIED Improvements Improvement ID Improvement Typo Improvement Description Year Built Size D Dwelling Dwelling 1977 1,248 G01 Other Attached Garage 0 548 Features Unit of Measure SF SF Features • Improvement Type Improvement Description Feature Built -in Dishwasher Size 1 of M easure Owner MILLER. GENE L Taxpayer MILLER, GENE 1 c/o Owner 4110 S HOLLOW CT Taxpayer 4110 S HOLLOW CT Address SPOKANE, WA 99206 Address SPOKANE, WA 99206 Market Values 2003 Acreage Land 32,500 Exempt 0 Land Sq Feet Value Impvmts 85,800 Property Class Code 11 Single Unit Personal 0 Total Value 118,300 Property Exemption Year Active Exemptions Fact Sheet for Property Number 45333.1004 Data As of 3/22/2003 Site Addres 4110 S HOLLOW CT TCA 0144 Parcel Statu Active Reports Page 1 of 2 Report Date Thursday, April 10, 2003 Fact Sheet for Property Number 45333.1004 Data As of 3/22/2003 Report Feature Masonry 2s stacked fireplace 1 IT Feature Range & oven combination 1 IT Feature Wood Deck 120 SF Page 2 of 2 Report Date Thursday, April 10, 2003 S1i'�1 ... Va11ey Memorandum To: Kevin Snyder From: Tom Scholtens, Spokane Valley Building Official Date: 1012/2003 4:53 PM Re: 4110 S. Hollow Ct Kevin Myre is the assigned inspector. Thus far we have satisfactorily completed footing and foundation inspections on the accessory building, and footing and gas pipe inspections on the addition to the home. Setback specifications were confirmed. 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 • Fax: 509.921.1008 • cityhallOspokanevalley.org SfOliane �vaL�ey Memorandum To: Kevin Snyder, Current planning Manager From: Chris A. Berg, Code Enforcement Officer CC: Marina Sukup, Community Development Director Tom Scholtens, Building Official Date: October 2, 2003 Re: 4110 Hollow Court 11707 E Sprague Ave Suite 106 4 Spokane Valley VIA 99206 509.921.1000 • Fax; 509.921.1008 + cityhattglspokanevalley,org, Upon your request I have completed my inquiry as to the status of the residence listed above. The following list of information has been researched: 1. Property Fact Sheet as of. Marc11. 2003 (enclosed)_ Affix extensive time and research with the County Auditor, Assessor and Treasurer's office, there are no new transactions with this property. The only recent record they have is a Taxpayer Change recorded on 01/03. They believe the property entered a foreclosure process. No new information is available at this time. 2. .Building Records are on file at SV City Hall_ All permits are cuurent and standard building inspections are ongoing as construction develops_ 3. On a chance,1 thought the City of Spokane may have on file the Business License for Moose Automotive, as they maintain the .Licenses for businesses operating in their City. There is no such license available at the City of Spokane_ While J. was there .T. had them log on and attempt to locate the license on -line, all to no avail, 1 placed a call into the . DOL with an inquiry, at the time of this writing my message has not been returned. This is not to say this business is not licensed as the State of Washington does not enforce a Change of Address requirement_ Mr. Ferrell stated he does have a busines license for this location. It is very possible the DOL has not updated their records. 4_ On-site inquiry with photo's. No one lives at the residence as a major remodel is being conducted. 1. had a very pleasant telephonic conversation with Jim Ferrell he is aware of the requirements for a home industry and agreed to meet with Kevin Snyder to discuss and initiate the permitting process. 5. Qwest Dex yellow pages for Business Li sting under the information provided (see attached). I will continue to monitor the situation for potential complaints or violations. As yet, none have been noted. Given Mr. Ferrel.l's indication of cooperation, 1 feel this matter will be resolved shortly. In addition, given the Low Risk category, as per the Spokane Valley Zoning Code Compliance Ordinance, 1 feel the hours dedicated to this potential violation are adequate. We will main ain a file on this address in the event a future complaint is filed. Chris A. Berg Code Enforcement Officer City of Spokane Valley MOOSE. UTOMOTIVE Professional, Quality Service of NC Equipment, Gifts, Com essors and most other Automat* Equipment Jim Ferrell Managing Member (509) 928 -2444 Spokane, WA'99206 Fax: (509) 891 -8190 4110 S. Hollow Court tome Resale World Broadway 99206 926-2699 tame Resale World Inc Broadway Suit 1 99206 922.1635 , Concepts 838.6616 r'gation Dist 18 15116 S Pierce Rd 99206 926-5759 lnswer 456-1398 nswer 880.1398 Dry %Nall Inc 9516 E is-t . 99206 926.7554 ;RN ELECTRIC WATER PANY- 90411 Pines Rd _________ 99206 928-4540 'CALLS 904N Pines Rd ____ . 99206 926 -9800 Glass Of Spokane =reya V1a. .._._...____.--_-_.._,..._._ 99202 536 -5022 Kenai) Karate Alvan Rd _.__....___._ _ _ VROt 99037 891.1454 Kenpo Karate rlln'an Rd .___....__._._....._ 9R0L 99037 928.2840 .RN MACHINERY 'ten: Ave ._____-__.'.-._._._._.._ 99212 535-1654 RN OFFICE EQUIPMENT Market __ _ _ 99207 328 -9872 Salon Nails 6 Hair trienne Rd _...._.-.--_-____-_. 99212 928-1949 Staple Inc 409 N Thtemian Re ___ _ 99212 921 -0430 Storage Systems Regret Rd _ ___-- ._�___ 99206 891-2602 keno Karate 6411140ivisirn St .. 99208 466 -2840 Aftermarket Holdings Inc Prague Av - ____ 99202 536.4223 re 11120 W Sunset limey ARWY HTS 99001 244 -0346 Communications L L C tn4uersityRd __-_--______ _ 99206 892-7618 e Manufactured Homes Of Canada 4ts Rd 99206 866 450-3033 haughnessv 5 Associates P5 orth River Suite 305 Or - 99201 325 -4900 3ert E CPA 201 1 A 1 North Ri'ier Or _ 99201 325 -4900 Iles Inc 1 14 E Ennina A't . _ __-._- 99207 326 -2902 el Dave MD 14402E Sprague Av ..._ 99216 922 -2625 nn 272311 Monroe St ..__ 99205 326 -7380 'axldermv 8921E Euclid .-...... 99212 928 -2464 ITT CHILDRENS DENTISTRY W6 Make C,Oifdre.n's Dentistry Pun" www.rnofrittdental.corri nwlevSt 99202 838 -1445 assn R DDS 5205 Cowtev St . 99202 838 -1445 ohn M ODSMSPS5205 Cowley St _ 99202 838 -1445 c Industries 360911 Sullivan Rd - 99216 926 -2581 nstruction 8124E 5rra oue Av 99212 928 -4878 Man MD PC 801W Sth Ste 104 _ . 99204 747 -5242 Associates Cpa's ,.. See Mo land Vernon M Cpa Greeting Card Co Inc ravidence Au ..- .......-.._-__-___ 99207 483-4221 Kenneth P S Icier Rd _ VLLYFRD 990 443 -1020 Kenneth V CPA 104 S Freya St ____. 99202 534 -3535 15 E Elder Rd VLLYFRO 99026 448 -0321 Management Co 9504E 1St Av _ 99276 922 -3667 Veryl cpa 104 5 Freya 5t .. _. - 99202 534 -3535 1y Freightlines 122011 Mane St 99202 534 -8540 lealthcare Of Wa- xm Ave suit 900 ....__. 99204 459 -6690 Mating .._ ............ .. .._ - - - -- 622-1427 JE STEPHANIE R rr1D z,I Ave Suite 102.___ - 59284 -1600 n's Appraisals _________ 891-9192 family Restaurant 9,201 624-4413 'coin St ._._.- _ e - Services SPragueAy 99216 921 -5293 NEY JOHN P JR ins intoln Ste 200 _....___._______. 99201 325 -3024 ey O'Neill CorkerV 6 Jones Inc ev John Jr 5 Lori flkRdsLo 99223 448-3830 Michael 1 405 iatoln St. 200 _.._._ ._ 99204 325.3024 •v O'Neill Corker V 5 Janes Inc ISJEY O'NEILL CORKERY & S INC - ?f O'Ne111 Corkery 5 Jones Inc Lincoln Ste 20G 99201 325 -3024 Y 5 Janes Benefits Inc Lincoln Ste 200. rn 99201 325-3024 :v 5 O'Neill Financial Seces Lincoln Ste 200 . 99201 455-4305 w E O'Neill Life Inc Lincoln So 200 ______ 99201 325-3024 gwestd ex.co m 711 E SR 902 ._. - - -- ------- .•...._ MDCL LK 99022 Monark Proa 711E 5R 902 mon LK 99022 Monark Realty 711E 5R 902 ___ ?IDOL LK 99022 Money Coro 316W Boone 6V 99201 Money Tree Inc 615 N Sullivan PRd _ V RDL 99037 Money Tree Inc 2926 5 Regal St 99223 Money Tree Inc 4808 E Sprague Av 99212 Money Tree Inc 12924 9V Sunset 1wv ARI VY HIS 99001 Mobilehome -Moran MOLSBERRY BILL H DDS 4407 r1 C.visian ________.______- __._ -_ 99207 487 -2116 Moltke Mary E 1923W 1st AV _. 99204 456 -8839 Momb Gil Construction 215 rl Vista Rd .... 99212 927-9708 1.lomlke Oemolltlon ___________..__.____ 325 -4291 MonlikeDemolition 431621 Father Way 99212 535 -1718 Mommy And Me Inc 507 Isa CHNY 99004 235-5556 MONACO ENTERPRISES INC 14820ESOragueAV _ ____.__ ................... 99216 926-6277 Monaghan Coleen Interior 8esigner 319 UV 80 Ave __ __. 99204 Monarch Estate Sales 2510NCincinnati St 99207 Monark Construction Inc 711 E SR 902 ._ ._. --__- °_- --___ -- MDCL LK 99022 Monark Mini•VJarehouse 838-6904 484 -7253 299 -7522 299 -7522 299 -7522 299 -7522 324 -2000 228 -9100 535 -2700 533-6669 244 -6200 MOtIIEYTREE- 4516 N Division Sc ____ 99207 12510 E Sprague Av 99216 1420W3rd Av _______ W 99204 223 W APelewaY -___ GA 83814 1808 E Sprague Av __________ SPOKANE WA 243 AOO :eway __________ COEUR VALVE 208 3527ES0ragueA :' __ - .99202 922221 Newport Hwy __ ____ _________ 99248 Monevtree Check 992 Cashing- 4516 N Division St 99207 3527 E Sprag ue A'1 _- _... 82 12510 E Sprague ________W .............99246 213 AOolev:av Apolewav Plaza - ...- .._...-. CDA Monevtree Inc 223 Wes[ Aprlewav _.-. COEUR O'ALENE 63.914 208 769 -7500 Mongolian 8bo 45412ESOragueA: _'1ROL 99037 891-7237 Monkey Bar The 10605E Sprague au . 99206 893-2309 Monkman George R MO 400ESthAve 99202 838-2531 Rockwood Clinic PS Monogram Homes .___...-- .- .-- -... -- 533 -6279 Monogram Homes 5813E 4[a Suite 102 Ave .._._._ _... 99212 444 -3000 Monogram Homes 7503 N Magnolia 5t ._. 99217 465 -2558 Monogram Homes 6019 Wooeland Park Dr 99212 344 -0532 Monroe Park Gospel Chapel 4123 N Monroe St _ _ 99205 327-4035 Monroe Philip L MO 1114 21 Vercler Rd _____ 99246 Res 36235 Rtdgeview Or ______ 99206 928-7133 Day Or Night ___ 928-6434 Monroe St Car Sales 3121 r1 AtenroeSt - 99205 327-9641 Monroe St Bridge Antique Market 604 21 Monroe St 99201 327 -6398 Monroe Street PowerWash 3121 rl Monroe St 99205 327 -9641 Monroe Street Wash Fr 2407 rl Monroe St 99205 327-1769 Monrovia Apartmenm 50 5 Monroe 5t . 99284 456 - 8969 Monsanto A9 Co 23711 N M/agen Rd CLBRT 99005 - 238.4464 Monson Ann Marie dmd 534-1800 Monson Ann-Marle OMO 3009 5 Mr Vernon St - ___ ______ 99223 534 -2666 Monson Douglass OPM 5I614 Milian Rd _ 99206 924-2600 Montague Garry Auctioneers 3410E Trent AV _ _._. -.- 99202 536 -7538 Montague L G 1609 W Garland Av 99205 327-3393 MONT LAMM BELGIANS 7501 W E,ioch kd -_____ ___ . CLYTr2 99110 276 -7636 Montecucco Max P 5020 E29tn Av 99223 534 -0222 MONTEGO BAY TANNING COMPANY 2718E57thAv 99223 448 -9556 Montessori Certified Pre-Schools- Liberty Lake Montessori 23621E 2nd Av LBRTY LK 99019 255-9512 Montessori Central School 5720 S Perri St 99223 448 -9856 Spokane Montessori School 9009 N Wall 5t ._ _ 99218 Spokane Montessori School West MIA Certified 1040WWright Drive _____ 99224 Valley Montessori School E 13963 Mission _.. 99216 Woodland Montessori School 4340 W Fort George Vdrighc Or _ ...... 99224 328.3156 Montessori Children's Center ...-......._....._... 466.0495 Montessori Day School 412 9. Crawford Av _. DR PRK 99006 262-9770 Montessori Early Learning Center 5508 8 Alberta Sc _____-_.--_.-- ..__._.W 99205 328 -7600 If No Answer • 326.3816 Montessori On Evergreen Montessori On 29th Inc _ _._ _-..__.-r 535-7888 Montessori Teacher Preparation Of Spokane ____-. __ _- __ -_ -- 325 -0939 Montgomery Court Apartments 2301 tl Wilbur Rd -.- ___--_--_ 99206 924-5659 Montgomery Henry FND 905 1 , 1 /Riverside Ave Suite 406 _. _ 99201 744-0778 Montgomery John arty 22.06 N Pines ?c - 99206 924 -3686 MontgamerV KONE __________ A____________ See KONE 101 BUILDING MATERIALS YEAH LUMBER, PLYWOOD. SIDING, ROOFING, DECKING, FENCING, LANDSCAPE, DOORS, WINDOWS, PAINT FLOOR COVERING, CABINETS. PLUMBING & ELECTRICAL •POLE BUILDINGS 4220 N. 4,8!(3.157_ SPat1L•IE WA 15091 7'09 -9510 620 L HOIuA80 PD. SP0 . E. WA 15091 467 -4958 7002 E SPRAGUc AVE SPauSE. W :A. 15091 922 - 1800 1701N. venIAA % AVE RAYe7 &4 1ASE. ID 42081 772-9511 2121 N. I5CHWAY 41 MGT FAIL 41 42084 777 -1995 OPEN 7 DAYS Montgomery Marilyn 1 __ -_ 443-0184 Monton N 4014E 16th Av 99223 534 -2955 Montoya Fred 0 att?' 2629 9 Grand Berd Ste 302 ..Y______- 99203 444 -6391 489-5000 Montoya Fred & Suzette ____ 443 -1424 926-2000 Montoya Home Caretaking Service Inc 747-6669 6522 E 1st Av . -... _______ 99212 535 -3499 769-7500 MONY Life Insurance Co _ 533-6669 9 5 Washington Ste 704 _. -. 99201 838-2036 769 -7500 Moody Bible Institute Northwest Center 534 -1756 For External Studies 487 -1769 467-6669 Moodvdesign Inc 292-0860 Moody's D rywall 489-5000 4361 Stare Route 211 _ NEWPORT 99156 292-0412 534.1748 Moody's (Drywall 1504 T Houston Av 99217 483.1672 926-2000 Moody's Inc 1744 Camden Rd ____ NEVI:PORT 99156 292-9066 769-7500 Moon Rock Company 7909 5 Grove Rd _- 99224 456.4883 MOON SECURITY SERVICES 456 -6833 Moon Security Services 891-6520 MOONEY & PUGH CONTRACTORS INC 5307 E(ataldoAV _._. .__ -- 99212 535 -8874 Moonlight Falls Landscape LLC ..._.,.._ 238 -9565 Moonlite Spa 42 University Rd ._......._.._ 99206 922 -4321 Moonlite Too 7413 ETrent Av _ • 99212 922-9656 Moon's Mongallan.Grlil 430W Math AV _ 99204 455-6884 Moon's Mongolian Grill 642514 0ivi5san St _ 99206 467.1043 Moonshadow 2 N Howard 5t __ 99201 624-7573 Moore Connie M5 1123WGarland Ste( ._ 99205 462-1700 Moore Document Solutions 2510 11 Pines Rd 99206 892-0021 Moore EXcavatlon� PLUMMER 63851 686.1628 MOORE H EARL root 16091N Garland A :' 99205 327 -3393 MOORE J A air{ 928-1362 Moore James PT OCS AT( FAAOMPT 1005N Evergreen Rd Suite 010 __ -- - --... 99216 926-5367 Moore Landscape Materials 6 Fuel - N Marker b E H avrthome Rd ___.______�____ 466 -7800 Moore Michael R MO 404 W 5th - _ 99204 Day Or Night Call 747.5141 MOORE MINI STORAGE ' >. 46823 E Sorauge Ave ____ -. Mt, 99037 927-8339 Moore Richard D ins 4407 OMslon St _--- 99207 487-7420 Res 12027115'filitehaiseSt __ _ 99218 467-2101 Moore Ronald J 0C 206 W 1st St ._ DR P @K 79006 276.2844 MOORE STAN & ASSOCIATES MOBILE SERVICE _._ Moore Sue CPA 604 UJ Rivers de Suite 4906 99201 747 -2600 Moss Adams LLP Moore Terry residential aOOralser 1340811 (1 MEAD 99021 467 -4869 Moore Vincent M Jr 1311 NWashtngtonSE 99201 326 -4440 Auto -Rain Sprinkler Supply Stove 5 Fireplace Moore's Boarding Home 1503 W Pacific Av _ 458 -0806 Moorestanley 0 Associates 9' 844 Clif: Orl'ie 99204 4•66-69 59 Mobile Service 981.2541 Moorhead Insurance b investment Co 328.646 ,112007 E 26th At' _ __ __.__ _.- ..._._. 99206 927-0832 "aloose Automotive 4110 S HaIirV' Ct _ 99206 928.2444 924-6629 Moose Creek Inc 838.5091 - -.. _ _ _. - __�__. Moose Crossing Ltd 25519 E Moltat Rd NWMN LK 99025 226-2589 Moose Lake Co The 707 W Main Av _... - 99201 624 -4661 Moose Lodge 6 Club Room 6363 t1 Lidgeiw) St - ______ 99208 484.1000 Alootsv's 406 W SPraaue Av _.. - _ -___. 99201 838.1570 Mootsv's North 9 Pizza 4069) Sprague Av ._ 99201 838.0260 MOR Furniture For Less 1201 r4 05visiwn SI .... Y - -- 99202 326.2100 - Mor Furniture for Less 16311 E Euclid Ave Suit B 99216 326.7516 MOR Manufacturing Corti E 5676 Selace 4VY .- . - ?ST FLLS 83E54 203 667-8799 MORAN FENCE 707N Freya it ___ 99202 534 -1413 Continued next Page Mo Owner MILLER, GENE L Owner 4110 S HOLLOW CT Address SPOKANE, WA 99206 Taxpayer Taxpayer Address MILLER, GENE L c/o 4110 S HOLLOW CT SPOKANE, WA 99206 Acreage Land Sq Feet Property Class Code 11 Single Unit l Y g Market Values Land Impvmts Total Value 2003 32,500 Exernpt Value 85,800 Personal 118,300 Property 0 0 Exemption Year Active Exemptions Transfer RESIDENTIAL NORMAL SALE NORMAL SALE NORMAL SALE NORMAL SALE Verification FULFILL CONT VERIFIED VERIFIED VERIFIED VERIFIED Legal Description FOREST MEADOW FIRST ADD L4 61 Sales Salo Date Sale Price Sale Instrument 12/16/2002 5122,500.00 Other 11/23/1998 569,670.00 Real Estate Contract 09/0711990 569,670.00 Other 05/10/2002 5132,511.00 Trustee Deed Excise Number 200221128 . 980017715A 980017715 200208016 Sales History (prior to 1999) Sale Date Sale Price Sale Instrument 09107/1990 $69,670.00 WARRANTY DEED 05102/1986 $75.000.00 CONVERTED FROM SCM 10126 565,900.00 CONVERTED FROM SCM 05/17/1978 554,900.00 CONVERTED FROM SCM 06/17/1977 523,000.00 CONVERTED FROM SCM Qualified/ Vacant/ Unqualified Improved Unqualified Improved Unqualified Improved Unqualified Improved Unqualified Vacant Unqualified Vacant Transfer RESIDENTIAL NORMAL SALE NORMAL SALE NORMAL SALE NORMAL SALE Verification FULFILL CONT VERIFIED VERIFIED VERIFIED VERIFIED Taxes Year Charge Typo 2003 Stonmvater Principal Spokane Valley RES1 2003 Soil Conservation Principal CNSV3 2003 Weed Control Principal WCWEED3 2003 Aquifer Principal HOUSE 2003 A/V Principal - Excess 2003 A/V Principal - Regular Charged 510.00 $5.00 53.00 530.00 5865.80 5962.83 Due $10.00 $5.00 53.00 530.00 $865.60 $962.83 Fact Sheet for Property Number 45333.1004 Data As of 3/22/2003 Site Address 4110 S HOLLOW CT TCA 0144 Parcel Status Active Report3 Page 1 of 2 Report Date Friday, October 03, 2003 Fact Sheet for Property Number 45333.1004 Data As of 3/22/2003 This report does not reflect current interest charges that may be due. Page 2 of 2 Tax Totals $1,876.63 $1,876.63 Report3 Improvements Improvement ID D G01 Improvement Type Dwelling Other Features Improvement Description Dwelling Attached Garage Unit of Year Built Size Measure 1977 1,248 SF 0 548 SF Features Improvement Type Feature Feature Feature Feature Improvement Doscription Built -in Dishwasher Masonry 2s stacked fireplace Range & over combination Woad Dock Unit of Size Measure 1 IT 1 IT 120 SF Report Dato Friday, October03. 2003 . -- <� :=. ATTACHMENT 0 14.605.020 USE - Residential continued: RR -10 Halfway House • (8 or fewer (Res. 1 -0566, dated June 19, 2001) Halfway House (greater than 8 residents, no more than 20 residents) (Res. 1 -0566, dated June 19, 2001) Home industry Home profession Household pets Manufactured (mobile) home Manufactured (mobile) home park Multifamily dwelling Nursing home, convalescent home Prison, jail, or institution 1. Maximum security 2. Minimum security 3. Work release 4. Correctional. facility Private repeater facility Retirement /elderly•apartrztent Secure Residential Treatment Facility (3 or fewer residents) (Res. 1 -0566, dated June '19, 2001) Single - fancily dwelling, new Single - family dwelling, expansion or accessory structure Solar collector and associated systems T-r-aasitional 3ti zi~t fae44ty (8-i - 1es5-fe&iden4 (Res, 1 -0566, dated June 19, 2001) N Transitional-eemmnity- faeilily (greater-than-B.-residents- - more -than 20- reside as} (Res. '1 -0566, dated June 19, 2001) N Chapter 14,605 Printed: !December 2000 N C.U., P- Acc.(4) •P P(2) 1 '( 2 ) N N C.U. P N P 1' P -Acc. / SRR-5 SRR -2 1 SR -1 SR -1/2 UR -3.5 UR -7 N ' C.U. C.U. r' C.U. N N N N N N C.U. C.U. C.U. C.U. C.U. C.U. C.U. N N N P- Acc.(4) P- Acc.(4) P- Acc.(4) P- Acc.(4) P- cc.(4) P- Acc.(4) P- Acc.(4) P- Acc.(4) P P P P P P P P P(2) P(2) P(2) P(2) • • P(2) P(2) N N P(2) P(2) P(2) P(2) P(2) P(2) P(2) P(2) N N N N N P P P N N N N N P P P N N N N N N N N P P P P P' P P N N N N N P P N N C.U. C.U, C.U. C.U. C,U. P •P P P P P P P -Acc. P -Acc. P -Acc. P -Acc. P -Acc. P -Acc. N N Page 70 N UR -12 UR -22 N P 1' C.U. P P -Acc. P -Acc. N N C,U. C.U. C.U. Zoning Code of Spokane County HOME INDUSTRY 1 -Come Industry: An occupation, profession, or craft, excluding an adult bookstore or adult entertainment establishment, in association with a primary residence, which is of such intensity or broad scope of operation that public hearing review, as a Conditional Use Permit, is necessary. Therefore, by character and definition, a home industry is different than a home profession or general commercial, industrial and business uses. Standards for Home Industry Conditional Use Permit: a. The property shall retain its residential appearance and character; b. The use shall be carried on in a primary residence or may be allowed in accessory, detached structures which are not, in total, larger than two (2) times the gross floor area of the primary residence; c. Only members of the family residing on the premises, and no more than two (2) employees outside of the family, may be engaged in the home industry; One (1) sign identifying the home industry shall be unlighted and may be attached or detached per the following standards: i.• In the EA, GA, RR -10, SRR -5 and SRR -2 zones, the sign shall be a maximum of sixteen (16) square feet on a face; ii.. In the SR -1, SR -1/2, UR -3.5, and RS zones, the sign shall be a maximum of four (4) square feet on a face; e. Window or outside displays may be allowed as approved by the Hearing Body; f. There shall be no stock stored nor commodity kept for sale on the premises which is not necessary to the occupation, profession, or craft; g. All material or mechanical equipment shall be used in such a manner as to be in compliance with WAC-1.73-60 regarding noise; h. Parking, traffic, and storage requirements shall be as approved by the Hearing Body; and i. All storage areas shall be enclosed or completely screened from view by a maximum six (6) -foot- high sight - obscuring fence meeting accessory use setback requirements. S16i j Valley Memorandum To: Dave Mercier, City Manager, and Councilmembers From: Chris Bainbridge, City Clerk CC: Nina Regor, Deputy City Manager; and Departrrient Heads Date: October 13, 2003 Re: Fee Resolution 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 • Fax: 509.921.1008 • cityhall @spokanevalley.org It has been brought to my attention that the Fee Resolution Chart to accompany the proposed fee resolution for 2004 Mueli is iliTl .id:;drinLyoui• %. oiliiei:Lapael'et jivat triorixA_;tr1lit), unfortunately does not contain all fees currently charged or proposed. Ln extrapolating the narrative, at least. one section was inadvertently omitted. Particularly, please note on the attached "redline" version, page 2 of 17, section entitled "3. Plans Review Fees" which section should have been included in the chart version. . I apologize for any confusion this may have caused. This resolution is not scheduled for final consideration until later in the year. TOTAL VALUATION FEE Sir to S500 $231-59 $23.5 the- €ittrt $5OO -pies -53.05 fer each `5,0! io S2.000 r- l 5.1 14; tad adEl-it -ter i+ l-ttding -S2 000 52.00 -1-to S25,000 S69.25 for the first $2,000 plus S14 for each additional $1,000, or fraction thereof, to and including $25,000 $25,00I to $50,000 $39125 for the first S25,000 plus $10.10 for each additional $1,000, or fraction thereof, to and including $50,000 550,001 to $100,000 $643.75 for the first $50,000 plus S7 for each additional $1,000, or fraction thereof, to and including $100,000 $100,001 to $500,000 • $993.75 for the first S100,000 plus $5.60 for each additional S1,000, or fraction thereof, to and including $500,000 S500,00 i to S I ,000,000 $3,233.75 for the first S500,000 plus $4.75 for each additional $1,000, or fraction thereof to and including $1,000,000 $1,000,000 and up $5,608.75 for the first $1,000,000 plus S3.15 for each additional S 1,000, or fraction thereof 2 Cite of SPOKANE VALLEY EXHIBIT A -4-FOR RESOLUTION - -03 -024 MASTER FEE SCHEDULE FOR I'ERIVUTS AND SERVICI SB-414 D1 F-1.14;-CODES, ND4 n . - 1L'N S AND itFC -R-T 1ON AN4) -ADM STRA TIC)N. Fees /or permits and -se - vices -wiII he sd / tlrls- resoltrhiOf H-tlte Q pt lraiw4'idky+ A41- fees -are ' Ilectcd- aad- lfste4 -nf- t inatee- dpar-trzerrt -r - ec-eipt- carder t;ie_pfop ?1R S- code- rtttrttlrer- so-N +ttt -euelr feces- ectt+- be- oceottrrted fer BUILDING CODE 1. Building Permit fees for each project is set by the following fee schedule and item 2 below. The above table is to be used to determine the building permit fees and plans check fees based on Exhbiit A Fee Resolution for 2004 - redilinc the 1. B. C. Q- V- e-Ituatien- Medi4iei -for thi; -- pra=t -ef-th 1=0R-S&TPI'' -G F1 — _ :QT TO OET13RPs INE=Pl[&EXACT VALUE OF THE Page 1 of 17 l3l-N1,D11•IC. "•- his- nio4i4er is revrscd and- ptrbtic ed -eve Ap e ;nteHmt.ional Conference fli i s e e City cinodifier -of -1--0- is-te-bE ase r e W&B eee of E3ti +lcfi+t� +•�.��c#- trs�l -by-•t =��` hn will apply, ai l-is- }yet- refttnda a value of the construction work as stated by the applicant or the value calculated by the Building Official using the latest valuation data published in the Building Safety Journal by the International Code Council whichever value is neatest.— Except: The categories listed below in the ICBO valuation modifier are changed to read as follows: a. Private garages (Wood frame) 519.00 sq. ft. b. Private garages 'Masonry) 522.00 sq. ft. c. Pole Buildings $19.00 sq. ft. d. Open carport, decks, porches S15.00 sq. ft e. Shed- fntleF- 24)O -sr efeet S4540, A- pa-r- tnwnt-FHoues- n -nfl- dwellings -n. te4Qi3O vaIuotion-+ diuei= -will use the AVERACE st-p r - ttuare-foot: Minimum basic building permit fee Group R -3 Occupancies (single family under 7,999 sq.ft.) Group R -3 Occupancies (over 8,000 sq. ft.) Group U -1 and U -2 Occupancies (sheds - barns- etc) Temporary tent or structure Standard Plans: Exhbiit A Fee Resolution for 2004 - redline $35.00 $69.25 3. J;zTi;ti�:(IE. �d F rc to be collected at the time of receiving the application for permit if the plans review fee is over $50.00. If the plans review fee is under $50.00 it can be collected at the time of permit issuance. This fee is to be 65% of the cost of the basic building permit fee as set by the 31:34ing -Gode d -the City of Spokane Valley Uniform Development Code for all building occupancies except Group R -3 and Group U. Plans review fees are not refundable once the plan review has been started. . - - - - ` • 5 (See.4 pefating-Policy 11 29- and-Sect-ion -307.3 of the -U. 3..C) This fee is in addition to the full basic fee. The WSBCC fee is to be collected at this time. If a set of plans already checked and approved is resubmitted by the owner or his l her agent, an hourly rate of $47.00 will be applied for the re- review. Other plans review fees are as follows: 40% of permit fee 65% of permit fee 25% of permit fee 25% of permit fee Standard Plans are plans for residential construction for dwellings that are repeatedly, identically reproduced by the same contractor or developer. Standard Plans shall be designed to reflect compliance with the current adopted construction code. The right to build with Standard Plans is not a transferable right between builders or developers. Standard Plans are not public domain. To receive the Standard Plan classification. a double .Ian review fee is re( aired to be aid at the first issuance of a permit. The Standard Plan will be given a special number, identifying the contractor and the specific plan. The Standard Plan will be kept on file until the Spokane Valley Building Code is changed to effectively create a condition of non- compliance. or until the plan has not been executed for three years whichever occurs frst. Once a Standard Plan has been recorded, to execute another Standard Plan Permit, the applicant shall be required to fill out a City of Spokane Valley Building Permit Application noting the Standard Plan number )rovide a detailed and scaled site plan. Leer *' Code compliance information and provide all required approvals From outside agencies. lagc 2 of 17 The Spokane Valley Buildin Division shall issue the Spokane Valley Iuilding Permit after comparing the file plan with the submitted plan to determine that both plans are identical. If the proposed plan is different than the Standard Plan than the proposed plan will be required to undergo plan review and the applicant will be required to pay the regular plan review fee. If the proposed plan is identical to the Standard Plan Number. then the Spokane Vallee Building Permit ma v he issued over the counter, once Zoning Code compliance is ascertained, with no additional plan review or plan review fee. Differences in finish material, siclini. or roofing; shall not he considered elements that Ivould create differences in plans. 4. THE BUILDING CODE P.ERM.TT FEES are collected at. the time of the issuance of the building permit. Other fees are also to be collected at the time of the issuing of the building permit. (i.e.; fire department fees not already collected, plumbing and mechanical permit eerie fees, planning fees, public works fees, and fees in lieu, etc.) Each department for whom the fee is collected is to advise the permit specialist. of fees due. No Permit Fee refund is allowed once the work has been started. [Fa refund is requested the request shall be addressed to the Building Official, shall be in writing and shall be received at the Spokane Valley Permit Center within 180 days of the date of issuance of the permit. Any fee refund request received after 180 days of the date of permit issuance shall be denied. Any refund approved shall be limited to 80% of the total Permit Fee paid. Refunds shall be limited to Building. Plumbing and Mechanical Permit fees paid to the City of Spokane Valley ADDITIONAL PLANS CHECK FEES MAYBE ASSESSED IF CONSIDERABLE CHANGES OR REVISIONS NEED TO BE MADE TN THE PLAITS PRIOR TO APPROVAL. 5. Early Start Agreements (Foundations) 25% of Building Permit. Fee 6. Temporary Certificate• of Occupancy $ 50.00 7. Fast Track Permits Not Allowed 8. Hourly rate set for City Employees $ 47.00 SIGN FEES I . Fees collected for a sign permit and a plans check fee for signs erected in accordance with the Uniform Sign Code. The below fee plus the IVSBCC fee of $4.50. Signs mounted on buildings S45.00 Sign and pole mounting $65.00 PLUMBING CODE 1. The fees outlined below are to be collected at the time of issuing a plumbing permit. if the plumbing is included in the Building Permit the unit costs are to be added but not the basic permit fee. A. Basic fee for issuing each permit $ 35.00 .Basic for each supplemental permit S 7.50 13. Unit fees (in addition to the basic fee) 1, For each plumbing fixture on a trap ( including garbage disposals, dish =shersdishwashers, back flow device, drainage, hot tubs, built in water softener, water closets, lavatories, sinks, drains, etc) $ 6.00 2. Private sewage disposal system $ 20.00 3. Water heater, each $ 6.00 4. Industrial waste pretreatment interceptor E hbiit A Fee Resolution for 2004 - redline Page 3 of 17 including its trap and vent, except kitchen type grease interceptors functioning as fixture traps. $ 15.00 5. Repair or alteration of water piping, drainage or vent piping, each fixture $ 6.00 6. kiwis sprm k-lei'�av tern eft -aR ne-nietef includ' - a n • - _ 'en- devises, each $ 25.00 O. For atmospheric type vacuum breaker each $ 6.00 7g. 13ackflow protective device other than atmospheric type vacuum breakers, each $ 6.00 89. Medical Gas, per outlet $ 6.00 9.4-0. Interceptors, each $ 6.00 MECHANICAL CODE I . The fees outlined below will be used and collected at the time of issuing a mechanical permit. If the mechanical is included in the Building Permit the unit costs are to be added but not the basic permit fee. A. Basic Fee for issuing a permit Basic fee for each supplemental permit $ 35.00 $ 7.50 B. Unit fee (in addition to the basic fee) Refer to the Uniform Mechanical-fee-1 Gatesefy, Furnaces & suspended heaters - Installation or relocation up to and including 100,000 btu $ 12.00 over 100,000 btu $ 15.00 Duct work system $ 10.00 Heat pump & air conditioner - 0 to 3 tons $ 12.00 3 to 15 tons $ 20.00 over 15 to 30 tons $ 25.00 over 30 to 50 tons $ 35.00 over 50 tons $ 60.00 Gas water heater $ 10.00 Gas piping system Each outlet $ 1.00 Gas log, fireplace, and gas insert installation $ 10.00 Appliance vents installation- relocation - Replacement $ 10.00 each Repairs or Additions of applianee- eentfolleEi e -LNG -. $ 15.00 Boilers, Compressors, and Absorption systems 3 hp - 100,000 btu or less $ 12.00 3 to 15 hp - 100.000 to 500,000 btu $ 20.00 15 - 30 hp - 500,000 to 1,000,000 btu $ 25.00 over 30 hp - 1,000,000 to 1,750,000 btu $ 35.00 over 50 hp - over 1,750,000 btu $ 60.00 Air Handlers Each unit up to 10,000 cfm, including ducts See UMC for e.>ept+efl $ 12.00 Exhbiit A Fee Resolution for 2004 - redline I'agc 4 of 17 l c MISCELLANEOUS FEES For City personnel Each unit over 10,000 cfm $ 15.00Evaporative Coolers (other than portable) $ 10.00Ventilation and exhaust Each fan connected to a single duct $ 10.00 Each ventilation system $ 12.00 Each hood served by mechanical exhaust $ 12.00 incinerators Installation or relocation of residential $ 19.00 Installation or relocation of commercial $ 22.00 Appliances, each $ 10.00 Unlisted appliances under 400,000 btu $ 50.00 Over 400,000 btu $100.00 Hood; type 1 $ 50.00 Type 11 $ 10.00 L P Storage tank $ 10.00 Wood or Pellet: stove insert $ 10.00 Wood stove system — free standing $ 25.00 ENERGY CODE Energy Code Plans check fee is also established to check to meet the requirements ofRCW 51 -11 WAC. These arc in addition to the Building Code Fees. If City inspectors are assigned to verify Energy Plans the following fees will he invoked. Han outside energy inspector is required that fee will be determined by the outside agency. Residential Remodel / Addition New Single Family Tenant Improvement 0 to 10,000 square feet 10,001 and up Multi - Family per building New Commercial and industrial W.S.13.C.C. SURCHARGE A flat fee of $4.50 will be collected on each permit for approved plans or any other permit that is issued in accordance with the 641~i1ferrtt- Spokanc Valley Building Code. EXCEPT: For multi - family projects the fee is $4.50 for the first living unit and $2.00 for each additional unit. This fee is to be forwarded to the Washington State Building Code Council on a quarterly basis by the Finance Department. DEMOLITION PERMIT Single Fancily Residence Garage or accessory building associated with a residence Commercial buildings 1 `r..,?0= tar giN =tcge t�t�t bullcl�irgs� 0 far er�c ]rsepii of uiif4efgrottitl t1fHiifrittEa -t3 � s- Sec Fire Department fee schedule for removal of flammable liquids tank (s). $ -0- $ -0- $ 35.00 $ 45.00 $ 60.00 $ 90.00 S 44.00 A $20.00 $125.00 1 xhbiit A Fee Resolution for 2004 - redline Page 5 of 17 I . A) Hourly rate for miscellaneous inspections Hourly rate for miscellaneous plans check Hourly rate for permit specialist Het:rrly rate for planners B) Overtime charges for: I) Plans checker 2) Inspector 3) Permit Specialist 4) Planners Hourly fees for contracted services will be according to the contract rate. Hourly rate for special called inspections. $47.00 C D) 1. See -F cc T -A 3. Delete 24. Mobile home location permit and inspection I. T-er eraryrnob•i•le -home $ 60.00 2. Manufactured home inspection per section $ 50.00 plus basementicrawlspace valuation permit -fee. 33. House Moving A) Class 1. II and 111 Ivleving Permit e Plus S'17.00-per-hour -af et4Ite-first -het r a 0-pei -mile if the bui -ltfi g te-be- +met ed- ifrte-the C «t is- eutside the CI Claels IV if already- permitted -by he- C— euf3pokaere- City ---$ 0- 46. Minimum Housing Inspection fee * Plus $47.00 per hour after the first hour. 5g. Work on any housiiig structure or building without a permit if a Spokane. Valley Permit is required: A) the Li. 13. C. ( 144fie /i-sfy s 4rrr+rvesilgn ftfee iddifielt te- the-per ;nil . fee, shtr// r ' tl- wlfellfe r t- ft- �e.wzi or +entil is?ueR T ::rirrim g, fee-s'Ifftl! be the s *nre- crsthe- fnininnrmiee -sei tlr-in Bible-1 4. This thenilr+nhles- the- /irrileiingp .tfeer) 4- An minimum investigative inspection fee $ 55.00 B Total investi , ative fee to be e.ual to the ermit fee determined for the value of the illegal work accomplished. 68. Special inspections (requested by owner or tenant). A) fire, wind, mud slide or flood damage B) C) 0) Mini Day Care Nursing Homes, hospitals, et al * Plus $ 47.00 per hour after the first hour Special Occupancies Exhbiit A Fee. Resolution for 2004 - redline $47.00 per hour $47.00 per hour $42.00 per hour $4 -00- perheur 1 1/2 times their regular rate $ 60.00 $ 55.00 * $ 60.00 $ 60.00 $ 60.00 $ 60.00 Page 6 of 17 7 74. Excess inspections created by contractor for a given project created by the developer of contractor.. Per Inspection $ 47.00 Reinspections - residential / commercial $ 47.00 Condominium conversion plans review and inspection fee: $47.00.Ihr 77a+s - ►+ +ial -f - rrtiee/ em- he- vrtlire-rtf lire -eon 'ersiim -aniI- tire- L4&G- vrrltrfetffns- 9-1-1- Temporary tents, canopies, and air supported structures for public use. This fee is inclusive of all tents for a single event.. 11 does not apply to tents less than 200 sq. ft.. canopies less than 400 sq. ft.. campinct tents and does not apply to tents used for private. non - commercial events. A) Plans check fee $ 13.00 13) Basic permit fee $ 60.00 I0' - -. Enclosing of an existing deck or patio. A) Basic permit fee (The valuation of the project with the minimum valuation of $3,000. to be used ) 13) 20% of the basic fee for plans examination. 113. Swimming pools (Over 5,000 gallons) Plus plumbing fees 124. Reroof Permit: Fee based on the value of the pt_oiect. No plan review fee will be charted unless Value of project plans are submitted for review. 134. Change of Use or Occupancy Classification permit $47.00 146. sttrrl -st'uc ~ 1`owers, elevated tanks, antennas. — Vhased on the value of project GRADING A) Basic fee $ 50.00 Elinetl -i�j Taksl- Ghupter 33 will be use - - e 4e es: Permit Fees 50 Cubic Yards or Tess $ 20.00 51 to 100 Cu. Yd. $ 20.00 101 to 1,000 Cu. Yd For the f 100 Cu. Yd • $ 20.00 Plus $7. for each additional 100 Cu. Yd. 1,001 to 10,000 Cu. Yd. For the first 1,001 Cu. Yds. $ 83.00 Plus $ 6. for each additional 1,000 Cu. Yd. 10,001 to 100,000 Cu. Yd. For the first 10,000 Cu. Yds. $147.00 Plus $ 15. for each additional 10,000 Cu. Yds. 100,001 to 200,000 Cu. Yds. For the 1' C. Y. $368.00 Plus $ 15. for each additional 100,000 Cu. Yds. 200,000 or more Cu. Yds. For the 1 200,000 yds. $503.00 Plus $15.00 for each additional 200,000 Cu. Yds. Plans Checking Fees 50 Cubic Yards or Tess 51 to 100 Cu. Yds. No Fee $ 12.00 IExhbiit A Fee Resolution for 2004 - redline Page 7 of 17 101 to 1,000 Cu. Yds. 1,001 to 10,000 Cu. Yds. 10,001 to 100,000 Cu. Yds. For first 10,000 Cu. Yds. Plus $ 7.00 for each additional 10 Cu. Yds. 100.001 to 200,000 Cu. Yds. Plus $6.00 for each additional 100,000 Cu. Yds 200.001 Cu. Yds or more B) Land Clearing only - (without earth being moved) $ 20.00 $ 25.00 $ 25.00 $ 98.00 $158.00 $ 65.00 ANNUAL PERMIT Annual Spokane Valley Building Permits used to maintain equipment or buildings, construct or remodel small areas of assembly occupancies or install tents or membrane structures maybe available depending on the determination of the valuation of work made by the Spokane Valley Buildin Official. Certain record kcesin and ins)ection res.onsibilities shall be established in a site specific Spokane Valley Annual Permit Agreement. Exhbiit A Fee Resolution for 2004 - redline Page 8 of 17 7 ****.*****,**************************** * * * * * * * *a*** * * * * * ** * * * * * * * * * * ** FERE CODE FEES .* * * * ** * * *,* pct**************+** * ** * * * * ** * * * * *,r. * * * * * * * * * * * * ** * * * * * * * * ** 1. Fees for fire code permits will be in accordance with attachment B, if deemed to be required by the Fire Marshal and / or the Building Official. 2. False Fire Alarm fees The following feels are set for repeated malfunctioning false fire alarms in a given six -month period:1-n-oonetlffehe4iiiform Fire Code affienchitenr41.4e4ellowing fees -are set— fop- repcaied-n}al[-f+netiontng false alarms-in-a gk'en six month- peFio4 1' alarm no charge 2 " alarm $ 3408 70.00 3rd alarm $ -743,08100.00 4 alarm $ ; 0.001 50.00 5 alarm $150.00 AND Require a hired fire watch 3. False Security Alarm Fees The following fees are set for repeated malfunctioning false security alarms in a given six -month c� riod I' alarm 2 " alarm 3 ` d alarm 4` alarm and each subsequent no charge $70.00 $100.00 $150.00 114 Fireworks Public Displays $100.00 Max. per RCW 70.77 This city Resolution also requires a performance bond or cash deposit: of $500.00 for clean up purposes and a liability insurance policy of $1,000,000.00. Plans check and review fees by the Bureau of Fire Prevention. (if conducted) A. Plans check and inspection fee for new commercial $ 40.00 projects not mentioned elsewhere. B. Fire Watch Service (three hours minimum) $140.00 Plus hourly thereafter C. Hourly fee for after hour inspections, plans review, consultations for projects that do not require a permit, and other special services. Time and a half of the hourly rate D. Hourly rate $ 47.00 6. Plans check and review fees, inspections, and permit for installation of separate fire alarm system or sprinkler system applications, and other fire protection systems. Exhbiit A Fee Resolution for 2004 - redline Page 9 of 17 A. Commercial - Fire alarm systems I. Permit, plans check and inspection Based on value of system B. Fire alarm systems - residential 1. All zones $ 40.00 2. Permit Fee $ 35.00 C. Sprinkler systems Tenant improvements -less than 10 heads -1 I or more heads $ 85.00 New systems 1. Commercial a. Plans check, inspection, & permit 2. Residential - each riser plus each plug or head D. Fire extinguishing system: (other than sprinklers) 1. Fire extinguishing system plus each nozzle E. Standpipe installation: Class 1 and Class 11 Class III $ 65.00 Based on value S 60.00 $ 1.10 $ 50.00 $ 1.50 $ 58.00 $ 70.00 F. Fire Pump Installation: $ 55.00 G. En gencv or Standby Commercial Power generators installation: $ 55.00 H. Flammable and combustible liquids storage tanks installation: 1. Underground, lst tank $ 55.00 plus each additional tank on same site $ 35.50 2. Above ground tank $ 55.00 plus each additional tank on the same site $ 35.00 3. Annual permit fee for storage $ 30.00 I. Hazardous materials storage tanks installation: 1. Less than 500 gallons - each $ 75.00 2. 500 - 1,199 gallons each $104.00 3. 1,200 gallons or more $147.00 J. Liquefied petroleum tanks: installation 1. Less than 500 gallons $ 84.00 2. 500 - 9,999 gallons $104.00 3. 10,000 gallons or more $147.00 K. Gaseous oxygen systems. installation: 1. Less than 6,000 cubic feet $ 78.00 2. 6,000 - 11,999 cubic feet $ 90.00 3. 12,000 cubic feet or more $118.00 ENhhiit A Fcc Resolution for 2004 - redline Page 10 of 17 PLATS Subdivisions I Nitrous systems installation: $ 95.00 1. plus each outlet 12.00 M. Medical gas systems installation: 1. Gaseous system $ 90.00 plus each outlet $ 12.00 2. Liquefied system $ 95.00 plus each outlet $ 12.00 N. Hazardous material recycling system installation: 1. 110 gallons or less per day capacity $ 95.00 2. More than 110 gallons per day capacity $117.00 0. Vapor recovery system installation: (per tank) 1. Phase 1 - tank truck and tank 2. Phase 11 - vehicle fueled and tank P. Cryogenic tank installation: (1st tank) Each additional tank on same site R. Fire Department fee for inspections and follow up. For initial inspection, plans check and follow up inspections as called for in the Fire Code the fire department will be paid 65% of the fee collected for the permit. This payment will be paid quarterly. S. Annual fire department fees for permits to maintain, store, use or handle materials or conduct a process which produce conditions hazardous to life and property are listed in attachment A of the Building Department Operating Policy number 23 and listed in the Uniform Fire Code. The categories listed may or may not require a permit depending on the determination of the Building Official or the Fire Marshal. FEES & CHARGES PLANNING $ 90.00 $1 15.00 S 95.00 $ 35.00 Removal or abandonment, or any combination thereof, of flammable or combustible liquid storage tanks: 1. First tank (commercial) S 84.00 2. Each additional tank on the same site (commercial) S 47.50 3. Contractors permit for removal or abandonment of residential under - ground fuel tanks S 75.00 Exhbiit A Fee Resolution for 2004 - redline Page 11 of 17 .1 .ive- plat Preliminary plat Final plat Short Plats Tentative plat $250.00 Preliminary 2 -4 lots $500.00 Final Plat 2-4 Lots $ 800.00 $10.00 /lot Preliminary plat 5 -9 Lots $1,000.00 + $25.00 /lot Final Plat 5 -9 Lots $ 800.00 + $10.00 /lot 81-1e4- 1-31ot -apt $200-00 Plat Modification Subdivision plat Short plat Binding Site Plan Binding site plan modification Change of Conditions Aggregation /Segregation Lot line adjustment Lot line elimination $250.00 $2,000.00 -I- $25.00 /lot $1,000.00 + $10.00/lot $650.00 $265.00 $1,500.00 $1,300.00 $ 650.00 $ 100.00 $ 100.00 I Gert ie -of Exemption $ 95.00 LNVIRONiMEN1'AL REVIEW SE checklist For a single dwelling (when required) $100.00 For all other developments $300.00 Appeal -t+(iS€PA dieter tt-iort $24043 Environmental Impact Statement Review -enee -east $2,000.00 f oont.Faeted -eut-by -c-ant - total cost-t e-bern -by-ap plicant. Stuff review of constfltt nt v.'erk- Shoreline Substantial Development Permit $ 800.00 Co tad it.io se $ 888:09 Variants c- $ 808:00 {mil ;e -abeve -three per.miti- appliotttierts- maybe consolidated. If rrru•ltiple- pert - €applications- tire- frta(lehe nppliennt - will be char -ged- the- fu-14- fee p fo: - the aplieat' ee - and 50 of the - established lee for eae1 -o the -other appIiee ion e- ) —A� peoI local $-140,08 —cPr app eati wconftieFenee $ 6 Critical Areas 5300.00 Iwxhbiit A Fee kcsolution for 2004 - redline Page 12 of 17 PERMITS Horne Occupation Permit $ 900:00 100.00 Conditional Use Permit $ 500,00 800.00 Temporary Use Permit S150.00 --- -44e 30 de s 1. 04:0.0 --- 3- 1 -t-o -4 $ P-5.. 0 ,00 Variances Administrative $ 300.00 fn»ri4y re:; E#efcC $ 3-80-00 nrfd- 14- other s $ 744-00 Public Hearings 51.500.00 Plan Amendments Comprehensive Plan amendment $1,500.00 ZONING Zoning map amendments (rezone) $1,500.00 Zoning and Subdivision code text change $ 5-W00-S1.500.00 --- C-- e4+rbi-n4+w-c &ic.t S- 1400 -00 — 1'-t-1-l)4e -ntttt i e -pktn $ 0,00 PUD plan $1,500.00 + $25. per lot PUD modification $500.00 ;irk i, $250-00 • '.viiijor $7--54-00 Site Plan Review Street Vacation Application Signs Review of permanent sign Review of temporary sign Appeals: peal+ 1 &e +t Appeal of Administr 1 ve Decision Appeals of Hearing Examiner findings PUBLIC WORKS $250.00 $300.00 $440:0050.00 $ 7-5-.4025.00 G=ode- e+ffeFeetnen4-v-i€4 tiorr appr l- to- 14afitt -1 ririer $250.00 $— ?00-00 $ 1.000.00 $ 300.00 Site eng ineering review - for road design, drainage, erosion, sedimentation control, right of way improvements, etc. Commercial construction $250.00 plus hourly rate after 5 hours. Residential construction $150.00 plus hourly rate after 3 hours Traffic Impact -fees Analvsis Not ava41eble $50.00 + Hourly rate after 1" hour Exhbiit A Fee Resolution for 2004 - redline 1'agc 13 of 17 Right -of -Way Use Permit (obstruction, utilities, approach) Floodplain Permit INSPECTIONS 1 Ler ccte+ ter + + iew $24A700- pei r -lieur fo et ne it nd-- geld -1 pec- ion - ree aetua4ime. Stormwater system inspections $50.00 plus hourly rate after l hour Field monitoring or inspections of grading residential sites Hourly rate , Field monitoring or inspections of grading non residential sites. Commercial, multifamily, and multi lot sites — Four (4) hour minimum Industrial or mineral industrial sites Ceditiet t4se permits- Rltis- iuspeetien -fee -it c• ie eltfre -pert its; Hourly Rate tieft- permit Pkts -f speetieti- fea- at -he1*ly -rate b. 44+i4' Pei ltt-e y porinit P Ices- r- eview-&4aspe ---- ---- -- - r pp*eael1- liet its 1 -r eetisn -fee -f Cash, certified check or bond for right of way cleaning $50.00 + Hourly rate after 1'' hour $50.00 + Hourly rate after 1'' hour $200.00 plus hourly $225.00 plus hourly $2-0x:}:00 l4ettriy -Fate $250.00 -plus heu4y • � }u�+;= i;,ifl�--= har�I��r+s+eHS awl plr�ned trn+t - Ae� Permits (inel - ufli+ - alterat - ©r - v t iet ++ 1 l- lags - ac plats 1--let ate $16.00 $1 6.00 $1,000.00 1. Copy fees a. Copies of audio tapes, video tapes, photos, maps, or other records needing reproduction. At cost b. Copies of written records $ 00.15 per page c. Copies of annual budget $ 10.00 c Cepics of full- deetnneMs -fnay- lie -p b ased ff Ktnl;o'J 2. Other fees $50.00 $? -5-00 1. xhbiit A Fee Resolution for 2004 - redline Page 14 of 17 +44- Blear -4t 11111111111111111111111111SIIIIU111111111111 ADMINISTRATION a. NSF check �. 14anel1se -iees (If aa+y) a-. Natti� l -Gas S h. -I•elephone $ c. Gable- eompan_' d. D pc n company $ 1. few -(44) a Sewep1ate -c- armor -fcc3 1. Picnic Shelter (< 200 people) P-ienie- shelte (- 200- p4tss- pee }ale) Refundable deposit ( <200) t efunclakate -de Facility Usc Request 2, c. ,alit4e4s Events - includes Pavilion $ 25.00 8*************************4* a**** * * * * * * * ***s * * * * * * * * * * * ** * *a* * * * * ** PARKS AND RECREATION 0 —l? :ca 11 N � sife44i e-I=ee to l�r A�ic�ei ecl-� l �i�lr+nbyrat�s �ldtF,;� ist+ giue -fie S-30,00 Ra €Erse Fee S 50.00 $ 30.00 $ 50.00 $ 250.00 $15.00 $150.00 Non- Profit applications will be considered by the Spokane Valley Parks Department $ 80.00e Exhbilt A Fee Resolution for 2004 - redline Page 15 of 17 3. 't�� ',,.+ _ 4{` (� 4 [� ^,•,, — ree-w th- stje�r hip *W A -p eft.tiL'TiYfer� "sp r':7131'p4s4t - the -Litt ef-- -Spak iic `Talley wi -1-1- bet osider -e 1-by -the- +j9ek- atie-Valley Par-k-s- DepaFt+ eHt- "Events" include activities such as car shows tournatnents and activities involvin 200 or more people. Director of Parks and Recreation will make final determination. Refundable deposit ( <200 people) Re +adable-tit=posit -{ 0( - people) Fit344-1J-se yotttd —ee lies youth-- lights gi its ne 6 -5. Aquatics Pool Admission (age 5 -1-) Pool Admission (under 5 ) Pool punch pass(25 swims) Weekend family discount (one Reservation (< 50) Food Fee Reservation (50 to 100) Food Fee Reservation (101 to 150) Food Fee 7. Field Use Rental M irabcau Springs Small shelter and waterfall $150. (magic 4 hours) ------- rVl- irabeati- Meaflews- Sheker- (<200- peoplo) $ 80108 Mir-abeau-Meadews-Slieltef.-(-2-004-42eople) $15000 $ 50.00 $2 -580 4. Mirabeau Meadows Mirabeau Meadows Shelter (<200_people) $80.00 Refundable deposit ( <200 people) $50.00 5. Valley Mission Arena Rental (per weekend- Fri /Sat/Sun) $100.00 Deposit $50.00 Renter responsible for on -site preparation Required liability insurance Free $20.00 child under 13 free with paying adult) $100.00 per hour (min 2 hrs) $25.00 $125.00 per hour (Min 2 hrs) $50.00 $150.00 per hour (Min 2 hrs) $75.00 $25 l hour /$15 each additional hour 86. Professional_ Photography Permit 'flee ftiifaµ anti tiet3rnlnereial- rtill��tic� video $ * fi Gems r -iz &1 still - xec )t vcdd if gs- alid -gf a tet4e Hs-) $ * * Sf3ca 4 . ' . $-� Mention -* e-e d- l=i -h-n- ** E hbiit A Fee Resolution for 2004 - redline $ 1.00 $25.00 Annually t ** Page 16 of 17 9-. Indoor use Open gym admission • $ 2.00 Indoor playground Program admission $ 20.00 adrnissien- te- efn- c- nwivad alts 41 * $ 0.00 , WiTtiss - et14E4 cltxj S. Reeremiei -elass l rips S enors- feat Recreation Procrram fees are set to recover costs as s * * $ 1.0: tetnt ;-ming-h ett+-s cs $15.fhottr ts � -i#ears 10040 -let r :---- ! Attu ! ktr�d4ed by 4 4 i- ►corn- r-ettt-1rls- C fFH s----- fnaetiee --garn Fitt► -reF +yak— evetfts, dafees Dental of NALesteol- 9Etttee -144 ecified in the Parks and Recreation Revenue Policy. I e odes nt#t�tiztist+€tta�e -4ee � f3.), rofuse -fee { - teat -let ttl- stet€ -prepa atieta- Etndier- d+Ek ta4 trtRes t Subject-t ev'isitat- ien -as- wee -- acquire mere -data on the- ttse- ef our -fae- i.lities- ifferent- each -Ses e di€fet eaela -Ery� Exhbiit Al Fee Resolution for 2004 , redline Page 17 of 17