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2016, 04-19 Study Session
AGENDA SPOKANE VALLEY CITY COUNCIL STUDY SESSION FORMAT Tuesday, April 19, 2016 6:00 p.m. CITY HALL COUNCIL CHAMBERS 11707 East Sprague Avenue, First Floor (Please Silence Your Cell Phones During the Meeting) DISCUSSION LEADER SUBJECT/ACTIVITY GOAL CALL TO ORDER ROLL CALL ACTION ITEM: 1. Mark Calhoun First Reading Ordinance 16-005, LTGO Bond for Advance to 2nd Reading City Hall [PUBLIC COMMENT] 2. Cary Driskell Public Safety Ad Hoc Committees Discussion/Information 3. John Hohman Port District Update Discussion/Information 4. Mark Calhoun Review of Spokane Valley Municipal Code Discussion/Information Chapter 2.30: Chief of Police 5. Mayor Higgins Advance Agenda Discussion/Information 6. Mayor Higgins Council Comments Discussion/Information 7. Mark Calhoun City Manager Comments Discussion/Information ADJOURN Study Session Agenda April 19, 2016 Page 1 of 1 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 19, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ❑ admin. report Department Director Approval: ® new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: First Reading of Ordinance #16-005 - Issuance of 2016 Limited Tax General Obligation (LTGO) Bonds for the Purpose of Constructing a New City Hall Building. GOVERNING LEGISLATION: RCW 35A.40, 35.37, 39.36, and 39.46; Variety of Federal tax and securities laws. PREVIOUS COUNCIL ACTION TAKEN: An Administrative Report on this topic was delivered to Council on March 22, 2016. No action was taken at that time. BACKGROUND: Developing options for a permanent City Hall building has been a Council budget and economic development goal for the past several years and the process over the past year is summarized in the bullet points below: • In early 2015 the City closed on a 3.38 acre parcel at the former University City Mall site at a total cost of approximately $1,160,000. • At the February 17, 2015 Council workshop, staff discussed the selection process for architectural firms to design the building. • At the March 17, 2015 Council meeting staff updated the Council on the selected design firm and discussed the draft professional services agreement for the project. • At the March 24, 2015 meeting, the Council authorized the City Manager to contract with Architects West to design the building at a total contract price of $996,700. • The architect team conducted a public hearing on May 6, 2015 and met with Councilmembers and staff to finalize the program and design and discuss design parameters for the building. • The project team updated the Council on the design process and displayed two potential concepts on September 15, 2015. Council indicated a preference for one of the concepts which was approved on September 29, 2015. • Interior color and material options were discussed on November 18, 2015 and a general heating and cooling discussion was held on December 1, 2015. • A general discussion on interior and exterior details occurred on December 29, 2015 and a status update was given on January 19, 2016 and February 2, 2016. • On February 16, 2016, staff and the project architect provided a detailed review of the construction plan set and the specification documents. Final floorplans, exterior and interior details, materials, and site layout were discussed. • On February 23, 2016 Council approved the final City Hall plans and authorized the City Manager to proceed with the bid process. • The project went out to bid on March 18, 2016 and the bid opening is scheduled for April 21, 2016. We anticipate the total project cost will be $14.4 million with $6.3 million covered with cash set aside specifically for this purpose plus an additional $8.1 million in net limited tax general obligation bond proceeds that will be repaid over a 30 -year period in roughly equal annual installments. The $14.4 million is anticipated to cover the cost of the land acquisition, design, construction, furniture and fixtures. Additional costs that will be borne by the City are those for Page 1 of 3 replacing the broadcasting equipment located in the Council chambers and television studio including cameras, tricaster, additional television screens and a variety of other equipment. The cost of these items will be financed through the use of PEG funds we have set aside for this purpose and these will be included in the 2017 Budget in PEG Fund #107. In order to issue bonds, the City Council must consider and adopt a bond ordinance authorizing the issuance, sale, and delivery of the 2016 LTGO Bonds, and further authorizing the City Manager to execute all other necessary documents to issue the 2016 LTGO Bonds. Other documents include, but are not limited to the "official statement" (which can be thought of as the prospectus) that details the 2016 LTGO Bonds to potential investors, the bond purchase contract wherein the City will agree to sell the 2016 LTGO Bonds to the underwriter, and other necessary securities and tax documents. When issuing municipal bonds the expertise of a number of individuals is required including: 1. Bond Counsel, who renders an opinion on the validity of the bonds, the security and source of payment for the bonds, and whether and to what extent interest on the bonds is excludable from federal income taxation. The opinion of bond counsel provides assurance both to issuers and to investors who purchase the bonds that all legal and tax requirements relevant to the matters covered by the opinion are met. Bond counsel also prepares the bond ordinance. The City has selected the Pacifica Law Group to represent the City as bond counsel. 2. The Financial Advisor, who advises the City on certain financial matters related to bond issuance and, under Federal securities laws, has a fiduciary duty to act in the best interests of the City. The Financial Advisor provides ongoing advice with respect to the structure and timing of the bond issue, reviews documents for financial aspects (such as sale parameters), and assists the City with receiving a rating for the bonds. For this issue the Financial Advisor is also preparing the City's preliminary and final official statements. The Financial Advisor works with the Bond Underwriter on the day of pricing to ensure that the rates proposed by the Underwriter are fair and reasonable given the bond market. The City has selected Piper Jaffray as the financial advisor. 3. The Bond Underwriter, who markets the City's bonds to potential investors as well as provides ideas and suggestions with respect to structure and timing of the bond issue. The Bond Underwriter ultimately purchases the City's bonds from the City pursuant to a bond purchase contract at an arm's-length commercial transaction and resells the bonds to investors. Since the Bond Underwriter is purchasing the City's bonds, it does not have a fiduciary duty to the City. The City has selected D.A. Davidson as underwriter. Each of the participants are paid only in the event the 2016 LTGO Bonds are issued and payment is made from the proceeds of the Bonds, so the costs for such services do not impact the City's General Fund. The attached Bond Ordinance authorizes the issuance of the 2016 LTGO Bonds, which will be issued as limited tax general obligations of the City, and payable from available funds of the City and non-voter approved property taxes. The full faith, credit and resources of the City will be pledged for the annual levy and collection of such taxes and for the prompt payment of the principal of and interest on the 2016 LTGO Bonds when due. The Bond Ordinance also states the authorized use of proceeds of the 2016 LTGO Bonds (to finance the New City Hall Building and to pay costs of issuance for the Bonds), sets forth covenants with respect to maintaining tax exempt status and covenants with regard to ongoing annual reporting to satisfy Federal securities laws, authorizes the City Manager to approve the preliminary and final official statements on behalf of the City, and provides for the source of payment and security for the 2016 LTGO Bonds. Page 2 of 3 By approving the Ordinance #16-005, the Council authorizes the City Manager to approve the final terms of the 2016 LTGO Bonds and to sign the bond purchase contract with the Bond Underwriter, subject to limitations contained in the Bond Ordinance. As a result, approval of the Bond Ordinance is the only official action that the Council will need to take to authorize the issuance and sale of the 2016 LTGO Bonds. Section 12 of the Bond Ordinance authorizes the City Manager to approve the final interest rates, aggregate principal amount and principal amounts of each maturity, redemption rights and the sale of the 2016 LTGO Bonds to the Bond Underwriter so long as: (1) the aggregate principal amount of the Bonds does not exceed $8,300,000, (2) the final maturity date for the Bonds is no later than December 1, 2045, (3) the aggregate purchase price for the Bonds shall not be less than 98% of the aggregate stated principal amount of the Bonds, excluding any original issue discount, and (4) the true interest cost for the Bonds (in the aggregate) does not exceed 4.50%. Subject to these sale parameters, the City Manager is authorized to execute the bond purchase contract with the Bond Underwriter. After the sale of the 2016 LTGO Bonds and execution of the bond purchase contract, the City Manager will provide a report to Council describing the final terms of the Bonds. The delegated authority to approve the 2016 LTGO Bond terms will expire 120 days after the effective date of the Bond Ordinance. If the 2016 LTGO Bonds cannot be sold (e.g. a bond purchase contract signed) within these parameters or within this timeframe, the 2016 LTGO Bonds will not be sold and additional Council action will need to be taken to proceed. OPTIONS: In order to proceed with the City Hall project, the issuance of limited tax general obligation bonds is necessary. At the point Council awards the bid on the City Hall project (currently set for the May 3, 2016 Council meeting), Council will be presented with a "base bid" option plus nine alternatives. Depending upon the alternatives selected by Council, it is conceivable the project might exceed $14.4 million which would necessitate the need for net bond proceeds of greater than $8.1 million. RECOMMENDED ACTION OR MOTION: Move to advance Ordinance #16-005 to a second reading. BUDGET/FINANCIAL IMPACTS: Costs related to the bond issue would be folded into the 2016 LTGO Bond issue amount and consequently the City would incur no out-of-pocket expenses. Issue related expenses would primarily include: • Underwriter fee (D.A. Davidson) • Bond counsel (Pacifica) • Financial advisor (Piper Jaffray) • Bond rating (Moody's) STAFF CONTACT: Mark Calhoun and Erik Lamb ATTACHMENTS: • Bond Ordinance Page 3 of 3 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 16-005 LIMITED TAX GENERAL OBLIGATION BONDS, 2016 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $8,300,000, TO FINANCE COSTS RELATED TO THE CONSTRUCTION, EQUIPPING AND FURNISHING OF A NEW CITY HALL FACILITY AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS; AND PROVIDING FOR OTHER MATTERS RELATING THERETO. PASSED MAY 10, 2016 PREPARED BY: PACIFICA LAW GROUP LLP Seattle, Washington 10118 00002 fa262m42rg CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 16-005 TABLE OF CONTENTS* Page Section 1. Definitions and Interpretation of Terms 2 Section 2. Authorization of the Project 4 Section 3. Authorization of Bonds and Bond Details 5 Section 4. Registration, Exchange and Payments 5 Section 5. Redemption Prior to Maturity and Purchase of Bonds 7 Section 6. Form of Bonds 10 Section 7. Execution of Bonds 12 Section 8. Application of Bond Proceeds 12 Section 9. Tax Covenants 13 Section 10. Debt Service Fund and Provision for Tax Levy Payments 14 Section 11. Defeasance 14 Section 12. Sale of Bonds 15 Section 13. Preliminary and Final Official Statements 16 Section 14. Undertaking to Provide Ongoing Disclosure 16 Section 15. Lost, Stolen or Destroyed Bonds 19 Section 16. Severability; Ratification 19 Section 17. Effective Date 20 * This Table of Contents is provided for convenience only and is not a part of this Ordinance. -i- 10118 00002 fa262m42rg 04/14/16 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 16-005 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $8,300,000, TO FINANCE COSTS RELATED TO THE CONSTRUCTION, EQUIPPING AND FURNISHING OF A NEW CITY HALL FACILITY AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS; AND PROVIDING FOR OTHER MATTERS RELATING THERETO. WHEREAS, the City Council (the "Council") of the City of Spokane Valley, Washington (the "City"), a noncharter code city governed by the provisions of chapter 35A.13 of the Revised Code of Washington (the "RCW"), has deemed it in the best interest of the City that the City construct, equip and furnish a new City Hall facility (the "Project"); and WHEREAS, the City is authorized by Washington State law to issue limited tax general obligation bonds to pay costs of the Project; and WHEREAS, after due consideration the Council has determined that it is in the best interest of the City to authorize the issuance and sale of limited tax general obligation bonds to pay a portion of the costs of the Project and to pay costs of issuance for the bonds, as set forth herein; and WHEREAS, this Council wishes to delegate authority to the City Manager, or his designee (the "Designated Representative"), for a limited time, to approve the interest rates, maturity dates, redemption terms and principal maturities for the bonds within the parameters set by this Ordinance; and WHEREAS, the City expects to receive a proposal from D.A. Davidson & Co. (the "Underwriter") and now desires to issue and sell the bonds to the Underwriter as set forth herein. NOW, THEREFORE, the City Council of the City of Spokane Valley ordains as follows: Section 1. Definitions and Interpretation of Terms. (a) Definitions. As used in this Ordinance, the following words shall have the following meanings: Beneficial Owner means any person that has or shares the power, directly or indirectly, to make investment decisions concerning ownership of any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). Bond Counsel means Pacifica Law Group LLP or an attorney at law or a firm of attorneys, selected by the City, of nationally recognized standing in matters pertaining to the tax exempt nature of interest on bonds issued by states and their political subdivisions. Bond Purchase Contract means the contract for the purchase of the Bonds between the Underwriter and the City, executed pursuant to Section 12 of this Ordinance. Bond Register means the registration books showing the name, address and tax identification number of each Registered Owner of the Bonds, maintained pursuant to Section 149(a) of the Code. Bond Registrar means, initially, the fiscal agent of the State of Washington, for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds and paying interest on and principal of the Bonds. Bonds mean the City's Limited Tax General Obligation Bonds, 2016, authorized to be issued pursuant to this Ordinance in the aggregate principal amount of not to exceed $8,300,000. City means the City of Spokane Valley, a municipal corporation duly organized and existing under the laws of the State of Washington. City Clerk means the duly appointed and acting City Clerk of the City or the successor to the duties of that office. City Manager means the duly appointed and acting City Manager of the City or the successor to the duties of that office. Closing means the date of delivery of the Bonds to the Underwriter. Code means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. Commission means the United States Securities and Exchange Commission. -2- 10118 00002 fa262m42rg Council or City Council means the Spokane Valley City Council, as the general legislative body of the City as the same is duly and regularly constituted from time to time. Debt Service Fund means the City's LTGO Debt Service Fund and the accounts contained therein, as further provided pursuant to Section 10 of this Ordinance. Designated Representative means the City Manager, or his designee. The signature of the Designated Representative shall be sufficient to bind 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 pursuant to Section 4 of this Ordinance. Fair Market Value means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of Section 1273 of the Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security --State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) any commingled investment fund in which the City and related parties do not own more than a 10% beneficial interest therein if the return paid by the fund is without regard to the source of the investment. To the extent required by the applicable regulations under the Code, the term "investment" shall include a hedge. Federal Tax Certificate means the certificate executed by the Designated Representative or the Finance Director setting forth the requirements of the Code for maintaining the tax exemption of interest on the Bonds to be dated as of the date of Closing, and attachments thereto. Finance Director means the Finance Director of the City or the successor to such officer. Government Obligations means those obligations now or hereafter defined as such in chapter 39.53 RCW, as this chapter may be hereafter amended or restated. Letter of Representations means the Blanket Issuer Letter of Representations given by the City to DTC, as amended from time to time. Mayor means the duly appointed and acting Mayor of the City or the successor to the duties of that office. MSRB means the Municipal Securities Rulemaking Board or any successors to its functions. -3- 10118 00002 fa262m42rg Official Statement means the disclosure documents prepared and delivered in connection with the issuance of the Bonds. Project means constructing, equipping and furnishing a new City Hall facility. Project Account means the account created pursuant to Section 8 of this Ordinance. Registered Owner means the person named as the registered owner of a Bond in the Bond Register. For so long as the Bonds are held in book -entry only form, DTC or its nominee shall be deemed to be the sole Registered Owner. 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. Underwriter means D.A. Davidson & Co., or its successors. (b) Interpretation. In this Ordinance, unless the context otherwise requires: (1) The terms "hereby," "hereof," "hereto," "herein, "hereunder" and any similar terms, as used in this Ordinance, refer to this Ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the term "heretofore" shall mean before, the date of this Ordinance; (2) Words of the masculine gender shall mean and include correlative words of the feminine and neuter genders and words importing the singular number shall mean and include the plural number and vice versa; (3) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (4) Any headings preceding the text of the several articles and sections of this Ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Ordinance, nor shall they affect its meaning, construction or effect; and (5) All references herein to "articles," "sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. Authorization of the Project. The Bonds are being issued to finance costs related to Project and to pay costs of issuance for the Bonds. The cost of all necessary design, architectural, engineering, and other consulting services, inspection and testing, administrative and relocation expenses, on and off-site utilities, related improvements and other costs incurred in connection with the Project shall be deemed a part of the costs of the Project. The Project shall be complete with all necessary furniture, equipment and appurtenances. Any remaining costs of the Project shall be paid from other City funds legally available for such purposes. -4- 10118 00002 fa262m42rg Section 3. Authorization of Bonds and Bond Details. For the purpose of paying the costs of the Project and paying costs of issuance of the Bonds, the City shall issue and sell its limited tax general obligation bonds in an aggregate principal amount of not to exceed $8,300,000 (the "Bonds") as set forth herein. The Bonds shall be general obligations of the City, shall be designated "City of Spokane Valley, Washington, Limited Tax General Obligation Bonds, 2016" with additional series designation or other such designation as determined to be necessary by the Designated Representative. The Bonds shall be dated as of the date of Closing; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, within a maturity; shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; shall bear interest from their date payable on the dates and commencing as provided in the Bond Purchase Contract; and shall mature on the dates and in the principal amounts set forth in the Bond Purchase Contract, as approved and executed by the Designated Representative pursuant to Section 12 of this Ordinance. Section 4. Registration, Exchange and Payments. (a) Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agencies. The City shall cause a bond register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of Bonds at its designated office. The Bond Registrar may be removed at any time at the option of the Finance Director upon prior notice to the Bond Registrar and a successor Bond Registrar appointed by the Finance Director. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver 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 of the Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes (except as provided in Section 14 of this Ordinance), and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 4(g), but such Bond may be transferred as herein provided. All such payments made as described in Section 4(g) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letters of Representations. The Bonds initially shall be held by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City has executed and delivered to DTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar shall have any responsibility or obligation to DTC participants or -5- 10118 00002 fa262m42rg the persons for whom they act as nominees (or any successor depository) with respect to the Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice which 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 (or any successor depository)), or any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any Bonds are held by a depository, DTC or its successor depository or its nominee shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the owners of any beneficial interest in such Bonds. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on 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 Bonds, or any portions thereof, may not thereafter 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 Finance Director pursuant to subsection (2) below or such substitute depository's successor; or (C) to any person as provided in subsection (4) below. (2) 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 Finance Director to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Finance Director may hereafter 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. (3) In the case of any transfer pursuant to clause (A) or (B) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the Finance Director, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the Finance Director. (4) 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 Finance Director determines that it is in the best interest of the beneficial owners of the Bonds that such owners be able to obtain physical Bond certificates, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held by a depository. The Finance Director shall deliver a written request to the Bond Registrar, together with a supply of physical 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 Finance Director to the Bond Registrar, new Bonds shall be -6- 10118 00002 fa262m42rg issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond 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 Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of 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 Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an 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 register the transfer of or to exchange any Bond during the 15 days preceding any principal payment or redemption date. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners or beneficial owners of Bonds. (g) 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. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30 -day months. For so long as all Bonds are held by a depository, payments of principal thereof and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer held by a depository, 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, or upon the written request of a Registered Owner of more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior to the applicable payment date), such payment shall be made by the Bond Registrar by wire transfer to the account within the United States designated by the Registered Owner. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the designated office of the Bond Registrar. Section 5. Redemption Prior to Maturity and Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional Redemption. The Bonds shall be subject to mandatory redemption to the extent, if any, set forth in the Bond Purchase Contract and as approved by the Designated Representative pursuant to Section 12. The Bonds shall be subject to optional redemption on the dates, at the prices and under the terms set forth in -7- 10118 00002 fa262m42rg the Bond Purchase Contract approved by the Designated Representative pursuant to Section 12. (b) Purchase of Bonds. The City reserves the right to purchase any of the Bonds offered to it at any time at a price deemed reasonable by the Finance Director. (c) Selection of Bonds for Redemption. For as long as the Bonds are held in book -entry only 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. If the Bonds are no longer held by a depository, the selection of such Bonds to be redeemed and the surrender and reissuance thereof, as applicable, shall be made as provided in the following provisions of this subsection (c). 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 designated 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) Notice of Redemption. (1) Official Notice. For so long as the Bonds are held by a depository, notice of redemption shall be given in accordance with the operational arrangements of DTC as then in effect, and neither the City nor the Bond Registrar shall provide any notice of redemption to any beneficial owners. The notice of redemption may be conditional. Thereafter (if the Bonds are no longer held by a depository), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official notice of any such redemption (which redemption may be conditioned by the Bond Registrar on the receipt of sufficient funds for redemption or otherwise) shall be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar. All official notices of redemption shall be dated and shall state: (A) the redemption date, (B) the redemption price, (C) if fewer than all outstanding Bonds are to be redeemed, the identification by maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, -8- 10118 00002 fa262m42rg (D) any conditions to redemption, (E) that unless conditional notice of redemption has been given and such conditions have either been satisfied or waived, on the redemption date the redemption price shall become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (F) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the designated office of the Bond Registrar. On or prior to any redemption date, unless such redemption has been rescinded or revoked, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. The City retains the right to rescind any redemption notice and the related optional redemption of Bonds by giving notice of rescission to the affected registered owners at any time on or prior to the scheduled redemption date. Any notice of optional redemption that is so rescinded shall be of no effect, and the Bonds for which the notice of optional redemption has been rescinded shall remain outstanding. (2) Effect of Notice; Bonds Due. If notice of redemption has been given and not rescinded or revoked, or if the conditions set forth in a conditional notice of redemption have been satisfied or waived, the Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Bonds which have been redeemed shall be canceled by the Bond Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice shall be given by the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C) the rate of interest borne by each Bond being redeemed; (D) the maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption may be sent at least 20 days before the redemption date to each party entitled to receive notice pursuant to Section 14 and with such additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Bonds. (4) Amendment of Notice Provisions. The foregoing notice provisions of this Section 5, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in -9- 10118 00002 fa262m42rg order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. Section 6. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF SPOKANE VALLEY LIMITED TAX GENERAL OBLIGATION BOND, 2016 INTEREST RATE: % MATURITY DATE: CUSIP NO.: REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The City of Spokane Valley, Washington (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from , 20 , or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on , and semiannually thereafter on the first days of each succeeding and . Both principal of and interest on this bond are payable in lawful money of the United States of America. The fiscal agent of the State of Washington has been appointed by the City as the authenticating agent, paying agent and registrar for the bonds of this issue (the "Bond Registrar"). For so long as the bonds of this issue are held in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of The Depository Trust Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter of Representations") from the City to DTC. The bonds of this issue are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and Ordinance No. duly passed by the City Council on May 10, 2016 (the "Bond Ordinance"). Capitalized terms used in this bond have the meanings given such terms in the Bond Ordinance. This bond 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 or on behalf of the Bond Registrar or its duly designated agent. This bond is one of an authorized issue of bonds of like date, tenor, rate of interest and date of maturity, except as to number and amount in the aggregate principal amount of $ (the `Bonds") and is issued pursuant to the Bond Ordinance to provide funds to -10- 10118 00002 fa262m42rg pay the cost of constructing, equipping and furnishing a new City Hall facility and paying costs of issuance for the Bonds. The Bonds are subject to redemption prior to maturity as provided in the Bond Purchase Contract and the Bond Ordinance. The Bonds may be transferred and exchanged upon surrender to the Bond Registrar as provided in the Bond Ordinance. The Bonds are not "private activity bonds" as such term is defined in the Internal Revenue Code of 1986, as amended (the "Code"). The City has designated the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. The City hereby irrevocably covenants and agrees with the owner of this bond that it shall include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted to the City without a vote of the electorate, upon all the property subject to taxation in amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. The pledge of tax levies for payment of principal of and interest on the bonds may be discharged prior to maturity of the bonds by making provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond have happened, been done and performed and that the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City of Spokane Valley, Washington, has caused this bond to be signed by the manual or facsimile signature of its Mayor, attested by the manual or facsimile signature of the City Clerk, and seal of the City to be impressed or reproduced hereon, all as of ,2016. CITY OF SPOKANE VALLEY, WASHINGTON (SEAL) By [Facsimile Signature] -11- 10118 00002 fa262m42rg Mayor Attest: [Facsimile Signature] City Clerk Date of Authentication: CERTIFICATE OF AUTHENTICATION This is one of the Limited Tax General Obligation Bonds, 2016, of the City of Spokane Valley, Washington, dated , 2016, as described in the within mentioned Bond Ordinance. WASHINGTON STATE FISCAL AGENT, as Registrar By Authorized Officer Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City by the facsimile or manual signature of the Mayor or City Manager and shall be attested to by the facsimile or manual signature of the City Clerk, and shall have the seal of the City impressed or a facsimile thereof imprinted, or otherwise reproduced thereon. In the event any officer who shall have signed or whose facsimile signatures appear on any of the Bonds shall cease to be such officer of the City before said Bonds shall have been authenticated or delivered by the Bond Registrar or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issuance, shall be as binding upon the City as though said person had not ceased to be such officer. Any Bond may be signed and attested on behalf of the City by such persons who, at the actual date of execution of such Bond shall be the proper officer of the City, although at the original date of such Bond such persons were not such officers of the City. Only such Bonds as shall bear thereon a Certificate of Authentication manually executed by an authorized representative of the Bond Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this Ordinance. Section 8. Application of Bond Proceeds. The Finance Director is hereby authorized to create a Project Account, and subaccounts therein as necessary, for the purposes set forth in this section. A portion of the proceeds of the Bonds shall be deposited in the Project Account in the amounts specified in the closing memorandum prepared in connection with the issuance of the Bonds. Such proceeds shall be used to pay or reimburse the City for the costs of the Project and to pay costs of issuance of the Bonds. The Finance Director shall invest money in the Project Account and the subaccounts contained therein in such obligations as may now or hereafter be permitted to cities of the State by law and which will mature prior to the date on which such money shall be needed, but only to the extent that the same are acquired, valued and -12- 10118 00002 fa262m42rg disposed of at Fair Market Value. Upon completion of the Project, Bond proceeds (including interest earnings thereon) may be used for other capital projects of the City or shall be transferred to the Debt Service Fund to pay principal on the Bonds. Section 9. Tax Covenants. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Bonds, including but not limited to the following: (a) Private Activity Bond Limitation. The City shall assure that the proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code. (b) Limitations on Disposition of Project. The City shall not sell or otherwise transfer or dispose of (i) any personal property components of the Project other than in the ordinary course of an established government program under Treasury Regulation 1.141-2(d)(4) or (ii) any real property components of the Project, unless it has received an opinion of nationally recognized bond counsel to the effect that such disposition shall not adversely affect the treatment of interest on the Bonds as excludable from gross income for federal income tax purposes. (c) Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of such action would be to cause any of the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. (d) Rebate Requirement. The City shall take any and all actions necessary to assure compliance with Section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Bonds. (e) No Arbitrage. The City shall not take, or permit or suffer to be taken, any action with respect to the proceeds of the Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. (f) Registration Covenant. The City shall maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code until all Bonds have been surrendered and canceled. (g) Record Retention. The City shall retain its records of all accounting and monitoring it carries out with respect to the Bonds for at least three years after the Bonds mature or are redeemed (whichever is earlier); however, if the Bonds are redeemed and refunded, the City shall retain its records of accounting and monitoring at least three years after the earlier of the maturity or redemption of the obligations that refunded the Bonds. (h) Compliance with Federal Tax Certificate. The City shall comply with the provisions of the Federal Tax Certificate with respect to the Bonds, which are incorporated -13- 10118 00002 fa262m42rg herein as if fully set forth herein. The covenants of this Section shall survive payment in full or defeasance of the Bonds. (i) Bank Qualification. The City hereby designates the Bonds for purposes of paragraph (3) of Section 265(b) of the Code and represents that not more than $10,000,000 aggregate principal amount of obligations the interest on which is excludable (under Section 103(a) of the Code) from gross income for federal income tax purposes (excluding (i) private activity bonds, as defined in Section 141 of the Code, except qualified 501(c)(3) bonds as defined in Section 145 of the Code and (ii) current refunding obligations to the extent the amount of the refunding obligation does not exceed the outstanding amount of the refunded obligation), has been or will be issued by the City, including all subordinate entities of the City, during the calendar year 2016. Section 10. Debt Service Fund and Provision for Tax Levy Payments. The City has previously authorized the creation of a fund to be used for the payment of debt service on the Bonds and other limited tax general obligations of the City, designated as the "LTGO Debt Service Fund" (the "Debt Service Fund"), and within such fund separate accounts as determined to be necessary by the Finance Director, for the purpose of paying debt service on the Bonds. No later than the date each payment of principal of and/or interest on the Bonds matures or becomes due and payable, the City shall transmit sufficient funds, from the Debt Service Fund or from other legally available sources to the Bond Registrar for the payment of such principal and/or interest. Money in the Debt Service Fund not needed to pay the interest or principal next coming due may temporarily be deposited in legal investments for City funds, but only to the extent that the same are acquired, valued and disposed of at Fair Market Value. The City hereby irrevocably covenants and agrees for as long as any of the Bonds are outstanding and unpaid that each year it shall include in its budget and levy an ad valorem tax upon all the property within the City subject to taxation in an amount that will be sufficient, together with all other revenues and money of the City legally available for such purposes, to pay the principal of and interest on the Bonds as the same shall become due. The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the regular property tax levy permitted to cities, and that a sufficient portion of each annual levy to be levied and collected by the City prior to the full payment of the principal of and interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt payment of the principal of and interest on the Bonds as the same shall become due. Section 11. Defeasance. In the event that the City, in order to effect the payment, retirement or redemption of any Bond, sets aside in the Debt Service Fund or in another special account, cash or noncallable Government Obligations, or any combination of cash and/or noncallable Government Obligations, in amounts and maturities which, together with the known earned income therefrom, are sufficient to redeem or pay and retire such Bond in accordance with its terms and to pay when due the interest and redemption premium, if any, thereon, and -14- 10118 00002 fa262m42rg such cash and/or noncallable Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Debt Service Fund for the payment of the principal of and interest on such Bond. The owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this Ordinance except the right to receive payment of principal, premium, if any, and interest from the Debt Service Fund or such special account, and such Bond shall be deemed to be not outstanding under this Ordinance. The City shall give written notice of defeasance to the owners of all Bonds so provided for in accordance with Section 14. Section 12. Sale of Bonds. (a) Bond Sale. The Bonds shall be sold at negotiated sale to the Underwriter pursuant to the terms of the Bond Purchase Contract. The Council has determined that it is in the best interest of the City to delegate to the Designated Representative, for a limited time, the authority to approve the final interest rates, aggregate principal amount, principal amounts of each maturity of the Bonds, and redemption rights for the Bonds. Subject to the terms and conditions set forth in this Section 12, the Designated Representative is hereby authorized to approve the final interest rates, aggregate principal amount, principal maturities, and redemption rights for the Bonds in the manner provided hereafter so long as: (1) the aggregate principal amount of the Bonds does not exceed $8,300,000, (2) the final maturity date for the Bonds is no later than December 1, 2045, (3) the aggregate purchase price for the Bonds shall not be less than 98% of the aggregate stated principal amount of the Bonds, excluding any original issue discount, and (4) the true interest cost for the Bonds (in the aggregate) does not exceed 4.50%. Subject to the terms and conditions set forth in this section, the Designated Representative is hereby authorized to execute the Bond Purchase Contract on behalf of the City. Following the execution of the Bond Purchase Contract, the Designated Representative shall provide a report to the Council describing the final terms of the Bonds approved pursuant to the authority delegated in this section. The authority granted to the Designated Representative by this Section 12 shall expire 120 days after the effective date of this Ordinance. If a Bond Purchase Contract for the Bonds has not been executed within 120 days after the effective date of this Ordinance, the authorization for the issuance of the Bonds shall be rescinded, and the Bonds shall not be issued nor their sale approved unless such Bonds are re -authorized by ordinance of the Council. The ordinance re -authorizing the issuance and sale of such Bonds may be in the form of a new ordinance repealing this Ordinance in whole or in part or may be in the form of an amendatory ordinance approving a bond purchase contract or establishing terms and conditions for the authority delegated under this Section 12. -15- 10118 00002 fa262m42rg (b) Delivery of Bonds; Documentation. Upon the passage and approval of this Ordinance, the proper officials of the City, including the Designated Representative, are authorized and directed to undertake all action necessary for the prompt execution and delivery of the Bonds to the Underwriter and further to execute all closing certificates and documents required to effect the closing and delivery of the Bonds in accordance with the terms of the Bond Purchase Contract. Such documents may include, but are not limited to, documents related to a municipal bond insurance policy delivered by an insurer to insure the payment when due of the principal of and interest on the Bonds as provided therein, if such insurance is determined by the Designated Representative to be in the best interest of the City. Section 13. Preliminary and Final Official Statements. The Designated Representative is hereby authorized to deem final the preliminary Official Statement relating to the Bonds for the purposes of the Rule. The Designated Representative is further authorized to approve for purposes of the Rule, on behalf of the City, the Official Statement relating to the issuance and sale of the Bonds and the distribution of the Official Statement pursuant thereto with such changes, if any, as may be deemed by him or her to be appropriate. Section 14. Undertaking to Provide Ongoing Disclosure. (a) Contract/Undertaking. This Section 14 constitutes the City's written undertaking for the benefit of the owners, including Beneficial 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 the MSRB, the following annual financial information and operating data for the prior fiscal year (commencing in 2016 for the fiscal year ended December 31, 2015): 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 headings (or similar headings) "General Fund Statement of Revenues, Expenditures and Changes in Fund Balance" and "General Fund Balance Sheet"; 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. -16- 10118 00002 fa262m42rg The information and data described above shall be provided on or before the end of nine months after the end of the City's fiscal year. The City's fiscal year currently ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's internet website or filed with the Commission. 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 (or any successor statute) when and if available to the MSRB. (c) Listed Events. The City agrees to provide or cause to be provided to the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the event, notice of the occurrence of any of the following events with respect to the Bonds: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 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, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; 7. Modifications to the rights of Bondholders, if material; 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, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 11. Rating changes; -17- 10118 00002 fa262m42rg 12. Bankruptcy, insolvency, receivership or similar event of the City; 13. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. (d) Format for Filings with the MSRB. All notices, financial information and operating data required by this undertaking to be provided to the MSRB shall be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking shall be accompanied by identifying information as prescribed by the MSRB. (e) Notification Upon Failure to Provide Financial Data. The City agrees to provide, or cause to be provided, to the MSRB 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. (f) Termination/Modification. The City's obligations to provide annual financial information and notices of listed 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) notifies the MSRB of such opinion and the cancellation of this section. The City may amend this section, without the consent of bondowners, with an opinion of nationally recognized 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 principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a listed event under subsection (c), and (2) 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 basis of the former accounting principles. (g) 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 -18- 10118 00002 fa262m42rg 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. (h) No Default. Except as otherwise disclosed in the City's official statement relating to the Bonds, the City is not and has not been in default in the performance of its obligations of any prior undertaking for ongoing disclosure with respect to its obligations. Section 15. Lost, Stolen or Destroyed Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, date and tenor to the Registered Owner thereof if the owner pays the expenses and charges of the Bond Registrar and the City in connection therewith and files with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership thereof, and furnishes the City and the Bond Registrar with indemnity satisfactory to both. Section 16. Severability; Ratification. 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 of this Ordinance and shall in no way affect the validity of the other provisions of this Ordinance or of the Bonds. All acts taken pursuant to the authority granted in this Ordinance but prior to its effective date are hereby ratified and confirmed. -19- 10118 00002 fa262m42rg Section 17. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. PASSED by the City Council this 10th day of May, 2016. CITY OF SPOKANE VALLEY, WASHINGTON ATTEST: Christine Bainbridge, City Clerk APPROVED AS TO FORM: Pacifica Law Group LLP, Bond Counsel Date of Publication: Effective Date: -20- 10118 00002 fa262m42rg L.R. Higgins, Mayor CERTIFICATE I, the undersigned, City Clerk of the City of Spokane Valley, Washington (the "City"), DO HEREBY CERTIFY: 1. That the attached is a true and correct copy of Ordinance No. (the "Ordinance") of the City, duly passed at a regular meeting of the City Council (the "Council") held on May 10, 2016. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of May, 2016. Christine Bainbridge, MMC, City Clerk 10118 00002 fa262m42rg CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 19, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ® admin. report Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Administrative report — general update discussion on potential Spokane Valley public safety advisory committee. GOVERNING LEGISLATION: NA. PREVIOUS COUNCIL ACTION TAKEN: March 1, 2016 discussion by Councilmember Pace, along with discussion by Sheriff Knezovich regarding the Spokane County Sheriff's Office Citizen Advisory Board. BACKGROUND: In February, 2016, Councilmember Pace raised for discussion the possible formation of a Spokane Valley public safety oversight or advisory committee. On March 1, 2016, Councilmember Pace briefly discussed how to more -fully form this concept, and suggested City Attorney Cary Driskell work with Rick Eichstaedt, Executive Director of the Center for Justice, on drafting up the framework. Mr. Driskell and Mr. Eichstaedt met March 22 to discuss this, and the following reflects their discussions. They will introduce each topic in turn, and would welcome comments and input from the City Council. The goal of this exercise is to create the initial framework and legal parameters for additional recommendations and final establishment of the public safety committee. These discussion points are not raised in any particular order of importance. A. Have a clear understanding of what the mission is — suggestion would be that it is to advise the Spokane Valley City Council regarding how identified public safety services are provided to our citizens. B. Consider contacting national group (National Association of Civilian Oversight of Law Enforcement (NACOLE)) for suggestions on formation and effective means of carrying out committee mission. C. Operation of the committee must be consistent with the council/manager form of government pursuant to chapter 35A.13 RCW. This means that the Council addresses issues and recommendations regarding policy issues, and the City Manager will address issues relating to the administration and provision of services. D. Creation and operation of the committee cannot result in or increase liability for the City by breaching the independent contractor relationship with any service provider, currently Spokane County. 1 E. It is important to understand that staff already provides considerable contractual oversight over all interlocal agreements to ensure the City is receiving appropriate services, and to ensure that the price being charged the City is accurate and reflects what the contract requires. F. Carefully consider what services the committee would have in its mission to advise the Council on. 1. The City cannot compel either Fire District (Spokane Valley Fire Department (also known as Spokane County Fire District 1) and Spokane County Fire District 8) to participate or provide any information to the committee, but it can request good communication. A representative from Spokane Valley Fire Department usually attends each Council meeting, including Fire Chief Bryan Collins. 2. The City cannot compel any of the 13 water districts to provide any information. The water districts are already part of a water board, which acts as a coordinating entity, which would likely be a better point of contact for a public safety committee rather than with each individual water district. 3. The City has an interlocal agreement with Spokane County District Court for provision of misdemeanor and infraction adjudication services. This is a four year agreement that automatically renews unless termination notice is given. Any notice of termination must be given at least 23 months prior to its expiration pursuant to state law. One mission of the committee may be to collect data on provision of services for six months in advance of the 23 month notice period. That way, the Council will have a better idea of whether it should consider continuation of the agreement, or whether modifications are appropriate to address issues. 4. Prosecuting attorney services are provided by interlocal agreement by Spokane County, and is a one year agreement that automatically renews if the 180 day notice of termination provision is not invoked, and termination may be invoked at any time during the contract. In 2012, staff analyzed whether this is a service that would make sense to bring in-house, since we are the largest city in the state without in-house prosecution. At that time, we determined that it would likely cost more to provide in-house instead of by contract. As such, we recommended to remain with the contract. 5. Public defender services are also provided by interlocal agreement by Spokane County under a similar arrangement as prosecutor. Staff has also looked at this in the past with regard to potentially bringing it in-house, and recommended not doing so because of existing cost issues, as well as uncertainty regarding futures costs as a result of maximum caseload standards mandated by the state Supreme Court. 6. Law enforcement is provided under interlocal agreement by the Spokane County Sheriff under a rolling four year agreement. Under that arrangement, either party may give notice of termination between the end of the 30th month and the end of the 48th month. If notice of termination is given in that 18 month window, then that initiates a transition period of a minimum of 18 months during which the parties formulate a transition plan, and the City would undertake all of the tasks necessary to take over law enforcement functions in-house. 2 It may be appropriate for the public safety advisory committee to be involved in the following tasks: a. review documents and findings of the Spokane County Sheriffs Citizen Advisory Board (CAB); b. provide copies of opinions on City -related CAB review to either the Council and City Manager, depending on whether it is policy or administrative; (the presenters have additionally discussed whether it may be appropriate for this proposed committee to render opinions as to the adequacy of any report from the CAB. Mr. Driskell and Mr. Eichstaedt have not come to any conclusions on this issue, and believe more time is needed to research this issue in particular, including whether this could result in additional liability for either the County or the City, and whether doing so could breach the independent contractor relationship the City has with Spokane County with regard to provision of law enforcement services. Both will be prepared to verbally discuss aspects of this with the Council at the meeting.) c. request review of incidents by the CAB; d. assist City residents regarding how to request review by the CAB; e. forward any documentation to the CAB the committee feels is appropriate; f. act as a resource for the CAB; g. provide advisory input to both Council and the City Manager as to recommended improvements to the CAB; h. provide advisory input to both Council and the City Manager as to recommended improvements in the provision of law enforcement services; and i. collect data on customer service issues (responsiveness to citizen complaints), especially in the six months prior to the 18 month termination window so the Council and City Manager can assess whether it is appropriate to request changes to the agreement, or whether the Council wants to consider terminating the agreement. G. committee makeup issues: 1. recommend three -to -five committee members; 2. set terms, suggest staggered terms of two and/or three years; 3. appointed by the Mayor, confirmed by the Council; 4. discuss qualifications of the members, whether it is intended to represent the entire Spokane Valley community, which could include: 3 a. no current law enforcement members, nor an immediate family member of a current law enforcement member; b. up to one former law enforcement member; c. no elected officials; d. able to pass a background investigation and have no convictions for crimes involving dishonesty or moral turpitude within the past seven years; e. an absence of any real or perceived bias, prejudice, or conflict of interest with full disclosure of possible conflicts (absolutely no axe to grind); and f. a record of community involvement. 5. should the committee sunset after a certain amount of time? 6. discuss frequency of meetings (variable depending on upcoming events?). H. It is important to understand at the outset that this committee would take a considerable amount of staff time, likely comparable to the Planning Commission, which takes three or four staff to get ready for each meeting in a manner that allows for a productive meeting. I. Does the Council have any other discussion points for consideration? J. Discuss what the next steps are, including projected timeframes to work within. OPTIONS: Provide direction to staff on how the Council would like to proceed. RECOMMENDED ACTION OR MOTION: NA. BUDGET/FINANCIAL IMPACTS: Unknown. STAFF CONTACT: Cary Driskell, City Attorney; Rick Eichstaedt, Center for Justice Executive Director (509-835-5211, ricke@cforjustice.org). ATTACHMENTS: Handout from Councilmember Pace March 1, 2016 4 Spokane Valley City Council Study Session 3/1/16 DISCUSSION ON A PUBLIC SAFETY CITIZENS OVERSIGHT COMMITTEE Discussion Leader: Councilman Ed Pace OBJECTIVES OF THIS DISCUSSION 1. Public Safety Citizen Oversight Committee: Move forward with another discussion at a future Study Session to review this and other proposals for forming an ad hoc committee of citizens and councilmembers that would spend six months drafting policy and bylaws for forming a Public Safety Citizen Oversight Committee. 2. Public Safety Department: Schedule a discussion for a future Study Session on SVMC 2.45 which states in part: "The purpose of the department of public safety is to monitor, coordinate, and enforce the responsibilities of various public health and safety functions performed within the City, including, but not limited to, police services, fire protection and suppression services, public health and safety matters, and such other related functions and duties as may be assumed or assigned by the city council and/or city manager. The above services are collectively referred to as "public safety services." (Ord. 69 § 1, 2003)." This Section of SVMC may relate to the Public Safety Citizen Oversight Committee. SCOPE OF THE PUBLIC SAFETY CITIZEN OVERSIGHT COMMITTEE. • City of Spokane Valley city limits (as opposed to the Sheriff's Police Advisory Board which covers the entire County). • AH public safety functions as laid out in SVMC 2.45. (as opposed to the Sheriff's Police Advisory Board which is limited to the Sheriffs Department) WHAT THIS PROPOSAL IS NOT • NOT about forming our own police department. • NOT based on criticism of any local public safety agency or function. AUTHORITY FOR FORMING A PUBLIC SAFETY CITIZEN OVERSIGHT COMMITTEE 1. Washington State Constitution says "AH political power is inherent in the people and governments derive their just power from the consent of the governed." (Article I, Section 1). The people of the City of Spokane Valley own the City government including all public safety functions within the City. They delegate much of their power to the City Council. The proposed Public Safety Citizen Oversight Committee is a way of bringing the citizens closer to the City Council. 2. Spokane Valley Municipal Code 2.45 establishes a Department of Public Safety. 3. Spokane Valley Municipal Code 2.15.040 gives the City Council audit authority "The city council reserves the right to cause a performance of (should say "or") financial audit to be made of any department or office within the City and may select the persons or entity to make such audit without the advice or consent of the city manager. The scope of the audit and the results shall be reported directly to the city council. This audit authority shall be exercised in a manner consistent with the power of the city council to define the functions, powers, duties, compensation and working conditions of officers and employees, including the authority to create departments, offices and employments as necessary or advisable. (Ord. 23 § 4, 2003)." 4. Ad Hoc Committees. The City of Spokane Valley Governance Manual, B.3 (pg. 42) gives the Mayor authority to appoint ad hoc committees consisting of Council Members and/or citizens. AD HOC COMMITTEE TO DRAFT THE STRUCTURE AND BY-LAWS OF THE PUBLIC SAFETY CITIZEN OVERSIGHT COMMITTEE • Duration: 6 months * Members appointed by Mayor - 1 Attorney from Center for Justice 1 Spokane Valley Police Officer 1 Police Officer from another agency 2 Council Members (1 serves as chair) 2 Citizens ONE IDEA FOR THE PUBLIC SAFETY CITIZEN OVERSIGHT COMMITTEE • Type of Committee: ad hoc • Duration: 1 year • Appointed by and reports to City Council • Five citizens with no connection to any public safety agency and with no "ax to grind." • Meeting frequency: monthly • Meeting functions: review public safety reports, take input from citizens, take input from public safety employees. • Report quarterly to City Council. • City Council determines whether items reported are administrative (and turns over to appropriate administrator with recommendation), policy, or information only. • Staff support: City of Spokane Valley Public Safety Department (similar to relationship between Planning Commission and Community and Economic Development Department). CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 19, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Port District — Strategic Business Plan Overview GOVERNING LEGISLATION: RCW 53.04 Port District Formation PREVIOUS COUNCIL ACTION TAKEN: 8-25-15 Discussion with GSI BACKGROUND: In the State of Washington, port districts were initially limited to operating transportation facilities such as docks, airports and short line railroads. In the 1950's Washington ports were authorized to undertake economic development efforts. Approximately 25% of the nation's port authorities are in Washington State. Currently, there are 75 Washington port authorities and of that only 6 of the 75 are deep draft cargo ports, the balance have an economic development focus. Port districts are special purpose local governments; unlike general purpose governments they have no traditional regulatory responsibility which provides ports broader flexibility to assist in economic development efforts. Port districts are able to do this by financing long-term investments, such as infrastructure, needed for growth. Port districts use taxes, service fees, bonds, rental income, and grants or gifts as revenue sources. Greater Spokane Incorporated (GSI) commissioned Maul Foster & Alongi, Inc. to prepare a Strategic Business Plan to support the consideration of creating a Port Authority in Spokane County. The draft plan was released in March 2016. Staff will provide an overview of the document and update the Council on the status of the proposal. OPTIONS: Discussion only RECOMMENDED ACTION OR MOTION: Discussion only BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: John Hohman, Community & Economic Development Director ATTACHMENTS: Draft Strategic Business Plan ie4-ente" tts • !)3, 41 I I:LI • 1-1' • II ArUP . , • \ 1—!: ••;_=, :! 11 ;:: r- ; Srpti2e,:•iiritz." 0014'1*, fe. -.y lit= fr? € • i J v I. . ,There is absalutelyno inevitability as long as thereto Sugar Beet Mill in Waverly, Washington TABLE OF CONTENTS BACKGROUND 1 SPOKANE PORT AUTHORITY 5 IMPACTS OFA PORT AUTHORITY 14 ILLUSTRATIVE PROJECTS 19 West Airport Multi -Modal Industrial Park Associated Painters Hangar 3 Project Kaiser Mead Deer Park Industrial Center The Yard Liberty Lake Smart Tech Campus Centennial Park Cheney Incubator Project Cheney Industrial Park Airway Heights Industrial Corridor Spokane Port Au►hority 1 STRATEGIC BUSINESS PLAN 2016 PREAMBLE Private companies and local governments serving the greater Spokane region have partnered to reformulate the area's approach to achieving more robust economic conditions and increasing livable wage jab availability. This effort has focused on exploring the creation of a newly formed economic development agency under Washington law: a voter - approved public port authority. Creating the Spokane Port Authority* would provide the community with a publicly owned agency that would be empowered with the primary mission of promoting economic development and associated increases in job creation and private business development. Ports in Washington, as special purpose local units of government, have unique powers and authorities that are complimentary to the existing powers and authorities of other local agencies including cities and counties. History indicates that Washington ports primarily focus on community building to support their local economies through the development and operation of industrial property, transportation facilities and economic development programs. This Strategic Business Plan (Plan) was developed to articulate both the need for, and the specific role of, a new voter -approved port authority. It was crafted through a collaborative regional effort organized within Greater Spokane Incorporated and guided by an advisory group of private interests and local governments. 'subject to further Spokane County determination on name. BACKGROUND • • • • • • • • • • As early as 1982 Spokane County considered the creation of a port authority to fund facilities for industrial development and encourage private investment. The driving vision at that time was job creation and the belief that a port district with its arsenal of economic development tools would substantially improve the competitiveness of Spokane County in the regional and national economy. • • • • • • • • • • • The Strategic Business Plan defines the planned priorities and intentions of the proposed Port authority. As a practical matter, it articulates, in understandable terms, what is reflected in the forecasted budget and financial plan. SPOKANE PORT AUTHORITY IMPACTS ILLUSTRATIVE PROJECTS 5 SPOKANE PORT AUTHORITY IMPACTS ILLUSTRATIVE PROJECTS WASHINGTON PUBLIC PORTS The Port District Act of 1911 allowed Washington communities to • establish port districts (authorities) with voter approval and elect. Washington State Port Facts • commissioners to administer the district and oversee its development • and operation. Washington public ports were originally authorized to provide maritime and rail facilities, but since then many additional 75 PORTS . authorities have been approved by the State legislature. Most • notably, in 1941, these public ports were granted the authority to r�G p . build and operate airports. In 1955 they were granted the authority 25 �ti OF THE NATION'S PORTS to establish industrial development districts and, in the 1980s, they were granted the authority to undertake a broad range of economic ALMOST 100% INVEST IN REAL ESTATE . development activities, including tourism. . 31 OPERATE AIRPORTS • Powers of Ports Include but Are Not Limited To: • Levy property taxes to fund capital and operating costs 1 IN 4 JOBS IN THE STATE ARE RELATED TO TRADE • • Fund promotional hosting activities to support the port •33 OUT OF 39 COUNTIES HAVE A PORT • Acquire property through eminent domain . • Partner through intergovernmental agreements with • 15 ARE COUNTY -WIDE local municipalities • • Buy, lease and sell personal property 11 ARE DEEP WATER PORTS • Operate transportation facilities • Develop lands for industrial and commercial purposes (IDD) • Operate trade centers, foreign trade zones, and export trading companies • Provide tourism facilities and promotion • Build infrastructure and facilities WASHINGTON STATE HAS THE LARGEST LOCALLY- • CONTROLLED PORT SYSTEM IN THE WORLD BACKGROUND EXECUTIVE SUMMARY BACKGROUND SPOKANE PORT AUTHORITY IMPACTS ILLUSTRATIVE PROJECTS WHY A.PORT AUTHORITY'? Spokane County serves as the region's economic center providing critical medical and education services. While the local economy has seen growth in recent years in the warehousing, advanced manufacturing, healthcare and finance sectors there is a growing sense that the region is not reaching its full industrial manufacturing potential. That has had an impact on the availability of higher wage jobs and the spin off economic benefits of a sustainable workforce. Unemployment has generally mirrored that of the state average, and is currently 5.5%. The average annual wage was $42,600 in 2014, compared to the state average of $55,000 ($44,300 without King County). A major obstacle to the County's ability to attract businesses is the competitive advantages offered by Idaho. Washington's tax structure is far less attractive than that of its neighbor to the east. Idaho offers property, sales, and use tax breaks to manufacturing firms that might otherwise be attracted to Spokane's strong manufacturing sector. In 2014, Greater Spokane Incorporated (GSI) acknowledged the loss of several major employers to Idaho including [to be provided by GSI]. BACKGROUND Port of Grays Harbor Sotsop Business Park. SPOKANE PORT AUTHORITY Currently Greater Spokane Incorporated (GSI) provides economic development services to the County including recruitment of inbound investment and the facilitation of local business growth. They are funded by voluntary contributions from local governments and periodic small grants from the State. Local government funding puts a burden on those agencies that have other critical demands for their limited resources. GIS does not have the funding or charge to invest in real property and infrastructure, the absence of which creates a real economic disadvantage to the area. The proposed Spokane Port Authority offers a sustainable revenue stream to continue the important work of GSI without local government resources and the opportunity for equity based investments on the community's behalf in infrastructure development that supports industrial development, as well as in joint public - private partnerships. The Spokane Port Authority would put Spokane County on a level playing field with other successful communities throughout the State and region. No Water... Why a Port? There are 75 public port authorities in Washington State, and of those 75% do not operate marine cargo facilities. Virtually all ports have earned revenue from real-estate ▪ investments from either ground leases or port -owned buildings. • Ports report that their practices and policies encourage joint ventures with the private sector. • • • • • • iIIVIPACTs ILLUSTRATIVE PROJECTS SPOKANE PORT AUTHORITY Spokane Port Authority f STRATEGIC BUSINESS PLAN 2016 SPOKANE PORT AUTHORITY The Spokane Port Authority will create economic growth and prosperity in all of greater Spokane County through the attraction of private sector market investment, which drives the creation of livable wage jobs. MISSION The proposed Port's Mission statement defines at its core WHY the Port would exist. 10 BACKGROUND IMPACTS ILLUSTRATIVE PROJECTS OJECTS The proposed : Port values define the beliefs andideals that the Port would. subscribe to as it delivers on its Mission, in essence HOW the Port will do its prk. AcKGkOti • The Port demonstrates leadership in service to greater Spokane to advance the economic prosperity of the region. • The Port, its Commission and staff, pledge to operate in an open, collaborative and decisive manner, with full transparency of decision making. • The Port places a premium on collaborating with the private sector and other public agencies to advance the community's aspirations while treating its unique community role and public trust responsibilities with the upmost importance. • The Port maintains its assets and facilities in a safe and environmentally sustainable condition that protects the community's investment. • The Port values a respectful relationship with its vendors, contractors and suppliers as well as its staff. '41 4:1 otiKME1 IMPACTS IL LUSTRATIVE PROJECTS STRATEGIC BUSINESS PLAN ARCHITECTURE OF STRATEGIC PLANNING GOVERNANCE PLANNED STRATEGIES (POLICY, OPERATIONAL, FINANCIAL) D - 1 YEAR 0 - 3 YEARS OVERALL GOALS 3 - 5 YEARS 10 - 20 YEARS 1 D - 20 YEARS Strategic business plans for ports include the overriding "goals" that the port seeks to achieve, in that sense, a destination it strives to reach, employing specific 'planned strategies'. The combination of `goals' and' values' the port embraces are based on its underlying `mission' that defines WHY the port exists. It's operational and capital (investment) budget, including a plan of finance, allocates the financial resources to support the ports undertakings, 12 1 BACKGROUND SPOKANE PORT AUTHORITY INITIAL GOALS AND PLANNED STRATEGIES 1. Attract inbound investment and support local business and industry expansion to create a stable and growing availability of family wage jobs. • Strategy 1 A: Launch a focused "recruitment and retention response program" for both inbound and local investment • Strategy 1 B: Create a "certified sites" program to identify and promote "shovel -ready" property 2. Institutionalize dedicated funding and delivery of regional economic development results. • Strategy 2A: Adopt a tax levy to support a dedicated staff, necessary facilities, and ancillary resource requirements to assume strategic responsibility for county -wide economic development • Strategy 2B: Seek designation as the Associate Development Agency from the County • Strategy 2C: Retain interim assistance to assemble the necessary staff, facilities, and institutional structure to support the new agency's vision and strategies 3. Place a high priority on realizing economic growth through patient industrial developmentand infrastructure investment with a particular focus on incubating start up and expanding business. • Strategy 3A: Conduct an initial industrial property (marginal lands) inventory and assessment to inform a 5-10 year "early action" investment portfolio, considering the creation of Industrial Development Districts • Strategy 38: Form an advisory group to identify prioritized investment opportunities 4. Through partnerships, support the efforts of area municipalities in achieving their vision of community economic prosperity. • Strategy 4A: Develop a funded sustainable "city -partnership program" with area municipalities and the County to identify joint programmatic efforts to support economic development • Strategy 48: Launch a "circuit -rider" program to local municipalities to provide onsite techrical support for economic development, including grant writing BACKGROUCr, SPOKANE PORT;AUT0ORITy. Early development in Spokane Valley. I-.USTRATIVE PROJECTS HOW IS A PORT AUTHORITY CREATED? Washington's ports are municipal corporations of the State and are classified as special purpose districts. All ports operate under the same state laws in RCW Title 53, but each is locally controlled and managed. The elected port commission is a quasi -legislative body that establishes polices to guide its operations and investments. Typically most ports retain a manager (executive director) and professional staff to undertake its work. Critical to the smooth and compliant operation of a port several required* and recommended** 'keystone' documents are created and adopted: • Strategic Pian** defining WHY the port exists • Comprehensive Scheme of Harbor Improvements* that articulates WHAT a port will invest in (Title is an historic carryover) • Delegation of Powers** in which the elected Commission delegates responsibility to a lead manager • Operating and Capital Budget* • Annual Tax Levy* • Organizational Chart** • Financial Guidelines** 14 - BACKGROUND. SPOKANE PORT AUTHORITY. What are the steps in creating a port authority in Washington State? 1. The County Council places the issue on a ballot or alternatively a voter petition can accomplish the same. 2. At the enabling election candidates run for office to fill the 3 seats on the Port Commission board 3. Commissioner representative districts are usually the same as County districts, but they can be designated differently 4. The newly formed port authority reimburses the County for its election costs IMPACTS Port of Kennewick industrial area. ILLUSTRATIVE PROJECTS IMPACTS ;; ILLUSTRATIVE PROJECTS ORGANIZATIONAL STRUCTURE OF THE NEW PORT The Port is governed by a three-person elected Commission that, in turn, will select and appoint a professional manager to serve as the executive director of the agency. The executive director will select and appoint the operating and project staff as well as undertake all other port operations and actions delegated by the Commission in a formal Delegation of Powers. Administrative Assistant BACKGROUND Executive Director Tndustriai Dev9iopment Advisory Co nmittee Business Expansion Officer Assistant for Economic Development Contract Accounting Contract Engineers & Planners Business Recruitment Officer •.SPOKANE PORT AUTHORITY HOW ARE PORTS FINANCED? Ports have both operating costs and capital investments that are funded from a variety of sources: Earned Revenues (Commission Approved): Ports earn revenue from leases and fees for port owned and operated assets. These funds are used for operating costs as well as pay as you go capital improvements and maintenance. Grants (Commission Approved): As a municipal corporation ports are eligible for a host of state and federal grant programs that fund specified capital improvements and focused studies. General Levy (Commission Approved): A port commission can levy a general tax levy to finance day to day port operations as well as make cash capital improvement expenditures. That levy is approved annually, after a public hearing, and the maximum rate is $.45/$1,000 of assessed value. Bond Levy for General Capital Improvements (Commission Approved): Ports can levy general obligation bonds to cover principal and interest for capital improvements without voter approval up to a limit of 0.25% of the district's assessed value. Ports operate on earned income and tax proceeds. Initially the Spokane Port Authority will rely on property tax proceeds but over time will depend largely on earned revenue from its investments. Typically Washington Ports rely on earned revenues for 75 to 80% of their operating and capital costs. In some instances ports have eliminated their property tax levy. 16 BACKGROUND SPOKANB PORT AUTHORITY Industrial Development Specific Capital Improvements Levy (Commission Approved): There is a new Industrial Development Levy authority enacted into law in 2015. It expands and provides more flexibility to port districts for levying taxes for industrial development capital improvement purposes The amount of the levy is based on a maximum collection of total tax dollars received over a twenty year period, but cannot exceed $.45/$1,000 assessed value in any given year, which is in addition to the general levy for operations. The maximum collection is $2.72 per each $1 ,000 of assessed value plus any new construction. Dredging Levy (Voter Approved): Port districts may annually levy taxes for dredging, canal construction, or land leveling or filling purposes, and the proceeds of any such levy must be used exclusively for these purposes. This levy cannot exceed $.45 per $1,000 of assessed value of the port district. (Unlikely use for an inland port authority). Revenue Bonds: Ports can issue revenue -based bonds that are based on the credit worthiness of the project to be funded and the port's overall debt coverage ratio. nnual}PoriC Taxon` Average• Home. $ .10 / $ 1,000 $ .201$ 1,000 $ .301 $ 1,000 $ .40 / $ 1,000 $ .45 1 $ 1,000 $ 3,840,000 $ 7,680,000 $ 11,520,000 $ 15,360,000 $ 17,100,000 $ 17 $ 34 $ 52 $ 69 $ 77 The Spokane Port Authority has the ability to levy a property tax on all property within its jurisdiction (Spokane County as prcposed). This levy can be utilized for operating expenses, capital outlay for projects and retiring debt service. In addition it can levy an Industrial Tax Levy. The impact on the average value home for the maximum rate is $77 per year. IMPACTS ILLUSTRATIVE PROJECTS ILLUSTRATIVE- PROJECTS 17' POKANE PORTAUTHORITY:n PROJECTED BUDGET For modeling purposes: • • The forecast anticipates that the Port of Spokane would have a deceasing tax requirement on property throughout the County as the county wide assessed value increases. Taxes on a $170k home would decrease from $77 to $59 per year. Half of its investments would have an expected return of 7%, that return ($45M) is re -invested in industrial development Earned Revenues* Operating Expenses* Capital Investment* * $ 1,000 • The total 10 -year projected investment in industrial development is approximately $313M. • The Port would maintain a debt coverage rate which would allow for additional project based revenue bond financing • The Port would invest some $5M in Partnership efforts with local governments; an additional $3M in special efforts focused on the economy and $1.7M in promotion over 10 years. BACKGROUND `z ;*'. :gin q : , s{oSr te:`" # -sY= zs ;: $444 $2,020 $2,545 $4,303 $5,017 $6,788 $7,518 $9,194 $9,943 100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 J7 $2,194 $2,282 $2,321 $2,393 $2,435 $2,477 $2,546 $2,592 $2,639 712 $45,020 $15,006 $5Q210 $20,394 $50,616 $20,844 $47,902 $21,392 $29,140 $75 $72 $70 $68 $66 $64 $62 $61 $59 .44 .42 .41 .40 .39 .38 .37 .36 .34 BACKGROUND 1M AU i TV Spokane Port Authority STRATEGIC BUSINESS PLAN 2016 IMPACTS OFA PORT AUTHORITY Ports have considerable beneficial impacts on their community's economy. Those impacts include `direct impacts' directly related to port activity; `indirect impacts' resulting from economic activity of port tenants and businesses; and 'induced impacts' from purchases and investments of employees working on or related to port property. As an example, in 2011, the Port of Whitman County reported 2,414 jobs directly related to the port and estimated an additional 1,700 indirect and induced jobs. These direct, indirect, and induced impacts also all create tax revenues for state and local governments. New businesses yield business and operations taxes (8&0), increased economic activity creates sales tax revenues, and property acquisitions encouraged by infrastructure provided by the port induces property tax revenues. In 2011 the Port of Whitman generated more than $18 million in indirect business taxes alone. The impacts of other ports, in terms of jobs, income, and tax revenues are listed below. Port of Olympia (2009) Port of Bellingham (2013) Port of Grays Harbor (20 13) Port of Longview (2013) Port of Everett (2014) Port of Vancouver (2010) 3,043 5,539 2,727 817 13,813 2,337 `.1�7��'�`. -.-"Il •= ',,,�,,s s ' , a La x Y r r i - 1. F �� p F r y` i - Tl , ! . !� '. � 'a',� 1@- sla, Tiy9-. �I �; S� SiSak' - 1,206 $112,500,000 $238,200,000 $1,062,200,000 $439,7 3,241 $233,300,000 $173,000,000 $1,351,200,000 $144/ 2,976 $118,900,000 $222,500,000 $564,000,000 $136,2 ?,203 $52,500,000 $166,300,000 $315,900,000 $56.96 21,316 $1,197,600,000 $2,773,000,000 $4,331,300,000 $583,4 3,770 $116,300,000 $333,300,000 $551,000,000 $160,7 RoKANE,FORT AUTHOR! PAOTS: 00,000 00,000 00,000 0,000 00,000 00,000 $31 ,200,000 $37,700,000 $32,100,000 $20,700,000 $373,200,000 $42,200,000 LUSTRATPVE PROJECTS:_ FINANCIAL CAPACITY (GENERAL OBLIGATION CAPACITY) $ .45 / $ 1,000 AV .0025 of the AV $2.72/$1,000 AV At the time of calculation is limit of additional 20 - year accumulated tax levy nbunt:Generatei $ 17,100,000 / Year $ 95,000,000 The total debt capacity for any non -voted General Obligation Debt $103,360,000 Maximum accumulated total that can be levied for 20 year period or $5,168,000 per year additional tax levy if calculated when the District is formed * Based on a $38B county -wide assessment. The Port would have the ability to levy property taxes across its jurisdiction, but that levy authority has som limitations by law. 20 BACKGROUND SPOKANE PORT AUTHORITY IMPACTS Maximum 20 Years at a coverage rate of 1.35 and an interest rate of 5% is $106,920 per year in bond payment for every $1M borrowed Funds can be used for capital uses or debt retirement. This does not give the Port additional statutory capacity beyond the $95M, but it does provide additional tax revenues to make debt service payments or fund capital projects on a pay-as-you-go basis $ .45 / $ 1,000 Maximum Limit Tax revenues used to pay debt service are within the Operating Levy of $0.45/$1,000 $ 22,268,000 Annual tax levy maximum ($17,100,000 plus $5,168,000) ILLUSTRATIVE PROJECTS alarm . PORT OS BENTON 1�JCF CAEATIR.;+�.inAN9A8Fi Port of Ka lama The Port attracted a pallet and crate manufacturing firm to relocate from Oregon to Port -owned manufacturing space. Port of Benton The Port and the City of Richland partnered in successfully bonding over $11M for telecommunications extensions, road construction, and industrial park improvements for the Tri -Cities Research District Innovation Partnership Zone. Port of Walla Walla The Port partnered with a national archery equipment firm to save and retain jobs associated with bow manufacturing in the Walla Walla valley. The Port also collaborated with the local community college to design and launch a winery incubator program to jump-start new wineries. IMPACTS WHAT OTHER PORTS HAVE DONE Port of Grays Harbor Through an Innovation Partnership Zone, the Port attracted an armor -manufacturing Partof Grays Harbor firm that supplies law-enforcement agencies x.. across North America with protective armor. PORT Off',BELLJ NGI-IAM Port of Bellingham Port of Bellingham Small Cities Partnership: The Port has matched more than $400,000 in funding for small cities to help them move forward in the early phases of needed engineering, study, and preliminary design of economic development projects. Port of Vancouver The Port recently cut the ribbon on a $30M rail project that will heap support commercial rail freight movement in the region. The Port also recently renegotiated its lease for a fruit -processing operation that employs some 500 employees. BACKGROUND SPOKANE PORTAUTHORITY _ILLUSTRATIVE ; PROJECTS ILLUSTRATIVE PROJECTS REGIONAL INDUSTRIAL INITIATIVE The proposed Spokane Port Authority is designed to allocate its resources and activities to benefit ail Spokane County communities and citizens, in essence, to reach all Four Corners of the County. The "Illustrative Projects" that follow are intended to represent the depth and range of potential Port involvement and investment throughout the County. They represent the types of priority projects the Port would pursue if it is allocated sufficient resources. Illustrative Projects 1. West Airport Multi -Modal Industrial Park 2. Associated Painters Hangar 3 3. Kaiser Mead 4. Deer Park Industrial Center 5. The Yard 6. Liberty Lake Smart Tech Campus 7. Centennial Park 8. Cheney Incubator Project 9. Cheney Industrial Park 10. Airway Heights Industrial Cooridor BACK 1 IMPACTS ILLUSTRATIVE PROJECT Spokane Port Authority 1 STRATEGIC BUSINESS PLAN 2016 WEST AIRPORT MULTI -MODAL INDUSTRIAL PARK Illustrative Project Story The Spokane International Airport is at the nexus for all air, rail and overland freight in the inland northwest. The Airport has aeronautical and non -aeronautical lard that is available for development but does not possess all the right tools and capacity for industrial property economic development. The Spokane Port Authority could facilitate attracting new business by working with the Airport to create a West Airport Multi -Modal Industria! Park. Existing Barriers The Spokane International Airport has struggled to garner interest for industrial development in the non -aeronautical portion of Airport property. It is difficult for the airport to develop and market the non - aeronautical property in a competitive manner as it is appropriatively focused on aviation matters. Competitor locations also have the ability to strategically suppress lease rates or provide other incentives that are not possible within the financial and legal framework the Airport operates within. In addition, the property that is best situated for industrial development does not yet have the infrastructure backbone necessary to serve new development. Funding for the infrastructure and any speculative vertical construction will be very difficult for the Airport to plan, fund and manage under its current legal, operational, and financial constraints. I►ww1 r ArENORTHWEST CONSORTIUM RASA A1LM.hV MAIM IwRnnnn I-cxrnw,n FOR 114E 11U/IC GydMrt FAPAtAtI*H AiwryM V.. WA WITT ciSROSUSTOM TEIMPATI.151, •Al WI LPSTITTETTIS OI•^• � mrmevloen rrlc. EOM* oppe TATVVM,c WA AOC AEREO L4P*6RE• • Herd. m IPIREVWELL•---- W[M ,;". Enc 4L11 IIYEnMAmt Ai11k. PFG. aw �teon LOA WA LOCA A Spokane Sp . CLO at AD Assc KATTIPS .pawn.. W. MERLYM 3*4 PRU spawn* WA r, tAMO MW MrIAlUL WCAL swATKA YEW* WA ! Mp7I6 6pTIAT, W4 Fns N ACCIIMAC Wk. ORA A4EATION TA RurMeMVM SAG fp,elE+.b. q1 A4 �o * W WA AemefwT Poulnot9 sp„t WR PPOAAreE IVA i • i410111 Law WA ;•' Y,,l j1.•Ir MCMINAM WM. I, Llw___CAI , WA , WA MUMS k 1}'.i ALII ,AFI N �JEIE- Mille \\\\\\\\\\\\ � 1 WA Ae.Mrw w ASULSTNI BITTA,cTIR r INA AV mIMMT ama MC. Spawns WA, WA EL4MA. Wa r. i1' Mania MSMM-6 mamma C*}6PARV AL,,NedTrtr, WA AAS%rMOVOTRR6 Amnia. M.E, WE trW AEAOEPACE sisttM6 MVLISE*0 ^..1.m. WA 4WLrn Mks W4 EPYAFR*M BCC ARCRAF! 01117S0ty S* ..A.,,. wa MAMMMMCE TECMIGD*IFa PIT Mar, L . WA AROM<YM $eLra W. Spokane. Interna:Ionil Nrport •YI.4LAe->.4a. el nab ARA .ar..N A **TAT M.v.n,Aw.e Aonmeo, AE$OSPACE BACKGROUND SPOKANE POT AUTHORITY ILLUSTRATIVE PROJECTS Strengths and Opportunities • City of Spokane Fast Track Permitting • City -provided sanitary sewer and water service • Redundant electrical service and high capacity natural gas available • Served by four (4) 1-90 Interchanges and BNSF Rail Service • 4.5 hour drive time to Renton and Everett — important factor for the existing 11 -hour driver rule • Significant trucking, logistics, and aerospace manufacturing industry clusters • 6 major education institutions in the region with over 90,000 students enrolled. • Business and living costs well below national average. Port Role The proposed port can operate in a legal framework that is capable of accomplishing exactly the kind of development the Airport needs to compete in the market place, The Purl could support the West Airport Multi -Modal Industrial Development by: • Creating an industrial development district (IDD) and tax to support build out of the industrial park • Acquiring property or entering into a long-term lease with airport • Designing, financing, and building critical infrastructure • Building and leasing speculative industrial real estate in the industrial development • Supporting Airport staff to obtain additional funding for infrastructure improvements Anticipated Outcome Creation and build out of a West Airport Industrial Park by the proposed port is expected to contribute to the regional economy by adding: • A Master Planned 1,500 -acre (ncn-aeronautical) industrial development: for lease or purchase • ---- Jobs/FTEs/SF • ---Taxable Revenue • ---- SF of Class/Type/Zone Industrial buildings • ----Leasing Revenue ASSOCIATED PAINTERS HANGAR 3 Illustrative Project Story Associated Painters' (AP) has a long history of success at the Spokane International Airport due to the proximity of Boeing production facilities located in Renton and high quality work being produced by AP in Spokane. The Airport has land adjacent to the existing AP hangars available for development but does not possess the capacity for industrial property economic development. The proposed port could facilitate an attractive leasing scenario and encourage AP to continue expansion of its business line in Spokane. Existing Barriers The single largest barrier to success for this long term Airport tenant is the ability to accommodate additional capacity from existing clients. AP currently services Boeing and Southwest airlines in their APS and AP2 hangars at SIA. Boeing is increasing the number of 737s completed each month and are pressing AP to ramp up production to match the increased volume. The current hangar space is insufficient to take on the additional capacity without either shifting Southwest airlines work to another facility or expanding hangar space enough to take on the added capacity. The vertical construction may be difficult for the Airport to plan, and fund under current legal, operational, and financial constraints particularly as it relates to market competitive lease rates. 26 BACKGROUNDSPOKANE PORT AUTHORITY 1 ;•�l CSS.\R ilii+ 1 ies4 S j'r„ '. r �..• RS&` IMPACTS • ILLUSTRATIVE PROJECTS ILLUSTRATIVE. PROJECTS Strengths and Opportunities • City of Spokane Fast Track Permitting • City -provided sanitary sewer and water service • Redundant electrical service and high capacity natural gas available • Works into the test flight plans for new aircraft out of Renton • Significant support available from trucking, logistics, and aerospace manufacturing ▪ Business and living costs well below national average. Port Role The proposed port operates in a legal framework capable of supporting the expansion of existing tenants and to facilitate market competitive lease rates that will help retain and grow business. The proposed port could support the AP Hangar 3 development by: • Entering into a long-term ground lease with the airport • Building and leasing the hangar space required for expansion of the AP business line at SIA Anticipated Outcome Design and build to suit the AP Hangar 3. The coordination and funding driven by the proposed port is expected to contribute to the regional economy by adding: • A large hangar structure (aeronautical) for industrial lease (10 -year term) • ---- Jobs/FTEs/SF • $30,000 - $60,000 Annual Leasehold Tax Revenue • 42,000 SF of Industrial/Aeronautical buildings • $25,000 - $45,000 new monthly Leasing Revenue • Secondary industrial development and service businesses • Larger building footprint will accommodate modern Boeing 737-300 with winglets. r..nri, . mourn r.nra+w/a wr winnnuuiimnmis 8mC I LIIIIIiIIIIIIIIIIlf ��' n" '� `Qn�""""`'" ..,u... ccs r.ar<r r, BACKGROUND • SPOKANE: PORT AUTHORTFY•-,; MP4CTS;'. ILLUSTRATIVE PROJECTS KAISER MEAD Illustrative Project Story The Kaiser Mead smelter was constructed as part of the nation's war effort during World War II. The smelter was sited in Spokane as a means of protecting industrial production far from the coast and safe from potential attack. The smelter had its heyday following the war but over time labor disputes, competition and policy changes resulted in the plant closing its doors for good. The smelter property was sold to a commercial development company and subsequently resold to a company specializing in industrial redevelopment. The proposed port could be a strong development partner with the new owner and could help develop necessary infrastructure and ultimately invest in early phase speculative vertical construction. Existing Barriers Much of the financial burden is the cleanup cost for handling and removing tons of hazardous materials from the site — asbestos- and PCB -coated galvanized steel walls and thousands of square feet of building surfaces covered in lead paint. Still needed at the site are updated utility services, such as electricity, water and sewer. Less urgent but also important is the eventual completion of the North Spokane Corridor to provide a direct connection to Interstate 90. 28 BACKGROUND SPOKANE PORT AUTHORITY IMPACTS r I LLUSTRATIVE RI JIE:CTS y Strengths and Opportunities • City of Spokane Fast Track Permitting • Extensive rail service from BNSF • Significant space available in a single location • Proximity to the north -south corridor • Business and living costs well below national average. Port Role The proposed port would be a valuable development partner for the Kaiser Mead site and could help coordinate infrastructure expansion and inter -local agreements to provide basic utilities. The port could support the Kaiser Mead Development by: • Creating an IDD and tax to support build -out of the property • Considering acquisition of the property • Building and leasing speculative vertical construction on site • Providing initial funding to construct infrastructure improvements to jump-start the development • Seek environmental dean up grants Anticipated Outcome Design and build underground utilities that are scalable for the phased development of the Kaiser Mead Site. Contributions by the port may contribute to the regional economy by adding: • A large hangar structure (aeronautical) for industrial lease (1 0 -year term) • ---- Jobs/FTEs/SF • ---- Annual Tax Revenue Added ---- SF of Speculative Industrial buildings • ----- New Monthly Leasing Revenue • Secondary industrial development and service businesses VOW !AiT 7Uk1KAtt9Ye ' A Li ▪ u15• "; .a:rr .BACKGRDUN❑ :: SpakANE'F©RT.AL]THORITY IPAGTs ILLUSTRATIVE PROJECTS DEER PARK BUSINESS AND INDUSTRIAL CENTER Illustrative Project Story The first phase (Phase 1) of the Deer Park Business and Industrial Center (B&I Center) is currently under construction and upon completion the property will be one of the newest industrial parks in Spokane County. The 144 acre site will feature "all weather" roads, sidewalks, water and sewer, pedestrian lighting and will offer full utilities. The project has been in the works for some time but Phase 1 has recently moved forward with funding assistance for backbone infrastructure provided by a USEDA grant. The City has had several businesses interested in the B&I Center, but only lacked the funding to prepare the lots for final development. The Port could facilitate development of early phase infrastructure in partnership with the City and also invest in speculative vertical facilities at the B&I Center. Existing Barriers Businesses interested in expanding operations in the Deer Park community have sent inquiries to the City of Dccr Park every year, but the lack of infrastructure at the B&I Center has precluded business expansion or investment in the property. The City of Deer Park has struggled to fund the backbone infrastructure necessary to prepare the B&I Center for business entry and final development of individual lots. The USEDA grant has allowed the City to advance the first phase but subsequent phases will face the same funding challenges. In addition, the City has very limited resources to market the B&I Center or provide any catalyzing agent. ""1:41, Et-- 11.1 L . t i =— n fi{ i, Tp ills - •Y i:lfni, 0 r NlIN:pi o:1 I If..1..ts�F rS !:11..f �['raWf �d+S, W+I]rrr.PneH hA I,n'Ik:i € [ lnwli ri1l!:t l .z l .SPOKANE PORT AUTHORITY IMPACTS .' Strengths and Opportunities • City -provided sanitary sewer and water service o Approximately 2 miles from US -395 NAFTA corridor • Adjacent to the Deer Park Airport o Opportunities for aerospace manufacturing industry clusters o Business and living costs well below national average. • Located adjacent to an existing duster of successful light industrial businesses including steel fabrication, timber supply, and truss manufacturing. Port Role The proposed port possesses the tools necessary to design, fund, market, and execute the vision for the Deer Park Business and Industrial Center. The port could support the City of Deer Park project by: • Creating an IDD and tax to support build -out of the business and industrial park o Entering into a long-term lease with the City o Designing, financing, and building critical infrastructure o Building and leasing speculative light industrial real estate • Supporting City staff in obtaining additional funding for infrastructure improvements and furnish frontage funding as a developer entering the business park ▪ Develop an early stage incubator that would help catalyze business activity on the project `BACKGROUND 5P( ONE PORT AUTHORITY'., Anticipated Outcome Direct investment in infrastructure and vertical facilities by the proposed port at the Deer Park Business and Industrial Center is expected to contribute to the regional economy by adding: • A master planned 144 -acre business and industrial development o An incubator space where small industrial or manufacturing businesses can lease a space configured to their specific needs o ---- Jobs/FTEs/SF ---- Taxable Revenue • ---- SF of Class/Type/Zone Industrial Buildings • ---- Leasing Revenue ILLUSTRATIVE PROJECTS ILLUSTRATIVE PROJECTS THE YARD - COMING SOON 32 BACKGROUND SPOKANE PORT AUTHORITY IMPACTS ILLUSTRATIVE PROJECTS 33 BACKGROUND SPOKANE PORT AUTHORITY IMPACTS LIBERTY LAKE SMART TECH CAMPUS Illustrative Project Story The Liberty Lake Smart Tech Campus will offer development space catering specifically to high-tech businesses looking more for a campus setting and feel. The campus will embody the ideals of a "live, work, play" community with significant green space, trails and outdoor gathering areas. The ideal development within the campus will demonstrate first-rate curb appeal, dedicated building facades and private parking. Spaces will be fully configurable to each tenants needs from light -industrial to high-tech manufacturing with ample room for office space throughout. The City of Liberty Lake currently has several businesses that may be interested in expanding into the campus. The proposed port could facilitate development of early phase infrastructure in partnership with the City and also invest in speculative vertical facilities. Existing Barriers The City has properties available for new industrial and commercial development but has struggled with increasing congestion, challenging roadway geometrics, and limited street access and connectivity to Interstate -90. The City has been proactive in outreach with WSDOT and has performed several studies intended to inform and then catalyze improvements to the existing 1-90 access locations but has met resistance with alternatives proposed. There are large tracts of bare land that are not appealing for development until access is improved and congestion is reduced. 34 BACKGROUND SPOKANE PORT AUTIIORITY" IMPACTS ILLUSTRATIVE PROJECTS G.14 Rlene Lake ILLUSTRATIVE PROJECTS' '?: Strengths and Opportunities • Full City services available and adjacent to Interstate -90 • Opportunity for high-tech manufacturing and light -industry clusters • Lip -scale area with living costs well below national average and many amenities. • An organized, planned, and managed campus that will preserve integrity of the campus plan. • A focus on product advancement and innovation with the ruorrl and setting for a corporate or regional administration presence. Port Role The proposed port can partner with the City to design and construct portions of the Smart Tech Campus. The port could be an investor in the basic infrastructure, early phase incubator type vertical construction, and land acquisition. The port could support the City by: • Advancing the Smart Tech Campus by leveraging support with WSDOT for improvements to I-90 access • Creating an IDD and tax to support build out of the Smart Tech Campus • Designing, financing, and building backbone infrastructure necessary to begin vertical construction • Considering property acquisition • Building and leasing speculative real estate Including an early stage incubator that would help catalyze development • Supporting City in funding infrastructure improvements Anticipated Outcome The port will have a profound positive effect on the development of a smart --tech campus in Liberty Lake. The campus is expected to contribute to the regional economy by adding: • A Master Planned light -industrial and commercial campus catering to an important sector of the market that isn': over -saturated in the inland northwest. • Installation of a new 1-90 interchange at Henry Road. • A technology incubator space where start-ups or small companies can (ease a space configured for their needs Jobs/FTEs/SF ----- Taxable Revenue • ---- SF of Class/Type/Zone Industrial Buildings • ----- Leasing Revenue Ali Withnia�=ZO Mit uter'Drive from Liberty lake auntry Homes _;pok.tri.r tate 7 :. 206 : °Trenterood ehfllrood SR4kane. a!Tishman c`ulradale la erty Lake W Id•53 v Rathdrum r liiyden Dalton Gar • ens G -Qeost Falls Coeur (]'Alen BACKGROUND ;SPOKANE PORTAUT IORITY MP CTS: ILLUSTRATIVE PROJECTS CENTENNIAL PARK illustrative Project Story The City of Spokane Valley is a community of over 90,000. The Valley is a gateway for commerce bracketing Interstate -90 for several miles as it parallels the Spokane River. The Valley tlas a strong retail and commercial presence as well as long-term industrial developments but lacks shovel --ready property for any new industrial development. There are large tracts of bare land available in an area referred to as "Centennial Park" but the backbone infrastructure necessary to initiate development efforts is not installed. The City lacks the resources to design, fund and construct the infrastructure and is interested in opportunities to partner with the proposed port. The port could construct the infrastructure necessary to catalyze development and would he an early investor in the park. Existing Barriers The most significant barrier to new industrial development in Spokane Valley is the lack of large parcels that are considered shovel ready. The City doesn't have the funding to design and build the infrastructure to support industrial development at the Centennial Park site. In addition to the new infrastructure required the connection of Barker Road and Trent Avenue will likely require installation of an overpass with grade adjustment ramps to accommodate an existing rail line parallel to Trent Avenue. The costs for necessary infrastructure improvements may reach $40 million. Infrastructure Improvements 2013 Estimates Roadways (new) Domestic Water Sanitary Sewer Roadways (removal & replacement) Barker Road Overpass Total Costs (2013 estimate) $ 2,500,000 $ 600,000 $ 4,000,000 $ 3,500,000 $ 29,200,000 $ 39,800,000 SPOKANE PORT AUTHORITY. IMPACTS Strengths and Opportunities • City of Spokane Valley Fast Track Permitting • Adjacent rail service provided by BNSF • Approximately 500 acres available in a one location with many contiguous parcels • Located in the center of a major commerce corridor with 1-90 to the south and Trent Avenue to the north • Full utilities available (including fiber) • Business and living costs well below national average. Port Role The general lay of the land is conducive to breaking the proposed development into phases. The proposed port is well positioned to help develop a phasing strategy and partner with the City to conduct stakeholder outreach, design new infrastructure and forge agreements to provide basic utilities. The port could support the Centennial Park development by: • Creating an IDD and tax to support build out of the industrial park • Providing initial funding to set standards and constructing infrastructure improvements to jump start the development • Facilitating discussion with WSDOT and BNSF to coordinate improvements to access into and out of the park • Considering property acquisition or joint private -public partnership • Building and leasing speculative vertical construction on site ACKGROEINI] '`," SPOKANE _PORT;AUTHORITY: Anticipated Outcome Provide outreach to the railroad and WSDOT to accomplish transportation improvements required fur the development. Design and build underground utilities in a stepwise approach that prepares properties for development in an efficient manner. Regional benefits may include: • New heavy and light industrial zoned property close to two major regional transportation corridors • ---- lobs/FTEs/SF • ---- Annual Taxable Revenue Added • ---- SF of Speculative Industrial Buildings • ---- New Monthly Leasing Revenue MP.CTS; ILLUSTRATIVE PROJECTS; CHENEY INCUBATOR PROJECT Illustrative Project Story The City of Cheney is home to Eastern Washington University and annually enrolls over 13,000 students. With a total of 6 major education institutions and many talented professionals in the region the City is interested in developing a high-tech incubator space that would provide the ideal eco -system for innovation and development of new commerce. An incubator space would be an attractive addition to available commercial space in Cheney and would offer a creative nexus for students, faculty and design professionals in Spokane County. The proposed port could acquire some of the property, design and build the incubator space in concert with the City. Existing Barriers The City has identified that the chief barrier to the citing, design and construction of an incubator is a lack of funding. The City owns a portion of the industrial lots but lacks the resources for speculative vertical construction. In addition to the funding constraints it is difficult for the City to effectively market a high-tech incubator across the region. 38 BACKGROUND SPOKANE PORT AUTHORITY 4 '6, • L 5 Y e { The Home of Eastern Washington University .41 IMPACTS ILLUSTRATIVE PROJECTS - . Strengths and Opportunities • Available land near the EWU campus • Full services can be provided by the City • opportunity to develop the incubator in the Cheney Industrial Park • Six major education institutions in the region with over 90,000 students enrolled. • Synergy with aeronautical, transit and medical technology Port Role The proposed port can take a lead role in developing a high-tech incubator in Cheney. The port can facilitate the project by: • Enter into a long-term lease with the City • Speculatively design, finance, and construct the incubator building in coordination with potential stakeholders • Identify incubator partners that may contribute funding or expertise for the construction or management of the incubator space • Evaluate and determine regional interest areas to target the incubator space towards interested users SACF(GROUINIb " : ' : 5FOKANE PORT AUTHDRiTY mpAcT; Anticipated Outcome Construction of the Cheney Incubator by the port is expected to contribute to the regional economy by adding: • A specialty incubator space for lease. • Significant opportunities for start-ups and small, high-tech commercial enterprises. • Funding opportunities and entrepreneurial resources that accelerate growth and profitability for new businesses through the Incubator • ---- Jobs/FTEs/SF • ----Taxable Revenue • ---- SF of Class/Type/Zone Industrial buildings • ---- Leasing Revenue ILLUSTRATIVE PROJECTS ILLUSTRAT'IVl PROJECTS :: CHENEY INDUSTRIAL PARK Illustrative Project Story The City of Cheney is home to an extraordinarily active rail yard served by both UP and BNSF rail lines. The City is located on rail lines and very near to the International Airport and Interstate •90, which serve the whole inland northwest. The City has land that is available for development but has some challenges with accessibility due to the several at -grade railroad crossings along SR -904. Trains that are travelling along the north -south corridor currently block all access to the City as they transit through Cheney. The City is interested in relocating the north -south rail corridor to improve freight mobility, decrease congestion and open up an area of vacant land for redevelopment as an industrial park. The proposed port could partner with the City to construct the necessary infrastructure to develop the Industrial Park. Existing Barriers The primary barriers to new industrial development in Cheney relate to mobility and a lack of capacity and connectivity. The City is ideally located near major overland transportation routes and the regional air carrier but lacks the road and rail infrastructure necessary to realize these benefits. The City identified that SR -904 needs to be widened from the City out to the Interstate and that a realignment of the PR and CC rail lines would eliminate a major source of congestion and would open up areas of vacant land for industrial development. The City has been actively seeking funding for transportation infrastructure improvements for some time without success and may need assistance securing enough funding to invest in the basic infrastructure that will inspire additional private party investment. SPOKANE PORT AUTHORITY ILLUSTRATIVE PROJECTS :: Strengths and Opportunities • City of Cheney Fast Track Permitting • Served by SR -904, UP and BNSF Rail Service and close to both Interstate -90 and Spokane International Airport • Significant opportunities for expansion of existing rail yards including an opportunity for a connection between the UP and BNSF on a 68 acre parcel • 4.5 hour drive time to Renton and Everett — important factor for the existing 11 -hour driver rule • Business and living costs well below national average Port Role The proposed port would have the tools and the incentive necessary to prepare the plan for development of the industrial park, aquire the necessary properties, and construct basic infrastructure. The Port could support the City by: • Creating an IDD and tax to support build out of the industrial park. • Designing, financing, and building critical infrastructure including the relocation of the north -south rail corridor • Considering property acquisition or joint public-private partnership • Building and leasing speculative industrial real estate in the industrial development • Supporting City staff to obtain additional funding for infrastructure improvements Anticipated Outcome Creation and build out of the Cheney Industrial Park by the port is expected to contribute to the regional economy by adding: • A Master Planned 130 -acre industrial development complete with rail spurs from UP or BNSF • Improved freight mobility through the corridor • Contiguous access out of Cheney to Spokane area • A reduced level of congestion due to railroad crossing stoppages • ---- .Jobs/FTEs/SF • ----Taxable Revenue • ---- SF of Class/Type/Zone Industrial buildings • --- Leasing Revenue . BAC KGROU NI] ;, ;SPOKANE, PORT. AUTHORITY ',ACTS' AIRWAY HEIGHTS INDUSTRIAL CORRIDOR Illustrative Project Story Airway Heights is a full-service community located on the West Plains at the western edge of the Spokane Metro Area. Just six miles from Spokane's city center, Airway Heights provides easy access to a variety of transport networks, has low land prices, a small town feel all culminating in the city being one of the fastest growing in Washington State. The City is interested in developing an iundustrial corridor along 21st Ave to open significant areas of industrial zoned property for development. In addition the corridor is aligned such that it will eventually function as an east/west industrial route bypass for Hwy 2. Existing Barriers The City's primary industrial area is located south of Hwy 2 and north of McFarlane Rd, bounded by Craig Rd to the west, and Hayford Rd to the East. development in the area is hampered by a lack of basic infrastructure, especially due to the lack of connectivity to the City's wastewater collection system. Twenty-first Ave, an unpaved road, is the primary east/west route through the area and is another barrier to industrial development. That road is envisioned as a designed industrial route that is hardened to accommodate heavy freight and other industrial traffic for east/west transport. 42 BACKGROUND 'SPOKANE. PORT AUTHORITY ri IMPACTS ILLUSTRATIVE PROJECTS Strengths and Opportunities • Futl-service city • Average annual population growth of 1.9% • Advanced Wastewater Treatment Facility (AWRF) that reclaims wastewater to a Class A standard and can be reused for irrigation and "greywater" uses • Easy access to 1-90, air, and rail transport facilities. City bounded to south by Geiger Spur • 4.5 hour drive time to Renton and Everett • Well positioned amongst trucking, logistics, and aerospace manufacturing industry clusters • Land costs below national, state, and regional average with large tracts available Port Role The proposed port could support development in the Airway Heights industrial corridor by: • Assisting in expanding the AWRF to full capacity (1.5 mgd to 3.0 mgd) • Consider acquisition or joint venture to have an equity position in land • Designing, financing, and building critical infrastructure necessary to extend full services to available land • Building and leasing speculative industrial real estate • Support City staff in obtaining additional funding for infrastructure improvements BACKGROUND • SPOKANE PORT AUTHORITY. Anticipated Outcome The build out of the Airway Heights industrial corridor by the proposed port is expected to contribute to the regional economy by adding: • New "certified sites" for industrial development • Reducing congestion through the City by development of the 21st Ave Hwy 2 bypass • Significant tracts of land for new industrial development and service businesses • ------ Jobs/FTEs/SF • ----Taxable Revenue • ----- SF of Class/Type/Zone Industrial buildings ILLUSTRATIVE PROJECTS. Aeronautical equipment at Emibry-Riddle Aeronautical ' e s' r - • 'r . 1 • r Base in S • okane. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 19, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ® admin. report AGENDA ITEM TITLE: Police Chief Job Description GOVERNING LEGISLATION: SVMC 2.30; RCW 35A.13.080 PREVIOUS COUNCIL ACTION TAKEN: Department Director Approval: ❑ ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session BACKGROUND: During the April 5, 2016 Council meeting, as part of the discussion concerning the Advance Agenda, Councilmember Pace requested this item be placed on an upcoming Council agenda for discussion purposes. OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET/FINANCIAL IMPACTS: STAFF CONTACT: Deputy City Manager Mark Calhoun ATTACHMENTS: SVMC 2.30 Resolution 13-031 Police Chief Job Description Job Description Development Guidelines Spokane Valley Municipal Code Page 1/1 Chapter 2.30 CHIEF OF POLICE Chapter 2.30 CHIEF OF POLICE Sections: 2.30.010 Office created. 2.30.020 Duties. 2.30.030 Appointment. 2.30.040 Qualifications. 2.30.050 Salary. 2.30.010 Office created. The city council of the City of Spokane Valley hereby creates the office of the chief of police. (Ord. 24 § 1, 2003). 2.30.020 Duties. The chief of police, under the direction of the city council and city manager, shall serve as the chief law enforcement officer of the City of Spokane Valley. The chief of police and his designees shall possess investigative, arrest and incidental powers relating to the enforcement of municipal laws including criminal and traffic misdemeanors and civil infractions committed in the City of Spokane Valley. Additional duties performed include patrol, traffic and pedestrian safety, crime prevention, community relations and such other matters as necessary for the proper functioning of the City of Spokane Valley police force. The chief of police has the authority to commission police officers for the City of Spokane Valley and may perform all acts necessary to preserve the peace and the order of the City of Spokane Valley under state and local law. The chief of police shall serve pursuant to the ordinances and regulations of the City of Spokane Valley, and all applicable state and federal statutes. (Ord. 24 § 2, 2003). 2.30.030 Appointment. Pursuant to RCW 35A.13.080, the chief of police shall be appointed by the city manager. The city manager shall have authority to remove the chief of police subject to any rule, law, ordinance or regulation relating to civil service (if applicable). (Ord. 24 § 3, 2003). 2.30.040 Qualifications. The city council and city manager shall confer in order to establish qualifications for the position of chief of police with such qualifications approved by resolution of the city council. (Ord. 24 § 4, 2003). 2.30.050 Salary. The salary for the position of chief of police shall be set by ordinance or contract. (Ord. 24 § 5, 2003). CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 03-031 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING JOB DESCRIPTIONS FOR ALL CITY POSITIONS. WHEREAS, the City Council adopted Ordinance No. 44, which, in part, provided for Council approval of any "conditions of employment" that may be placed on City employees; and WHEREAS, various position descriptions developed for City positions contain minimum qualifications and special requirements that are required to be met; and WHEREAS, the Council recognizes that a position description is a dynamic document that should be periodically updated as duties and responsibilities change over time, and as changing technology, services, methods, policies, etc. require new knowledge, ability or skill. WHEREAS, the Council desires to approve the initial position descriptions that have been developed for all classified positions in the City service; NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: Section 1. Position Descriptions Adopted. The City of Spokane Valley position descriptions, attached hereto as Attachment "A", are adopted by this reference as if fully set forth herein. Section 2. Periodic Review and Update. The City Manager is authorized and directed to periodically review and update all position descriptions to assure that the duties and responsibilities of the position are kept current, and that the necessary knowledge, ability, skills, and other necessary traits necessary to successfully perform the position are maintained. Section 4 adoption. Effective Date. This Resolution shall be in full force and effective upon Adopted this ! ,3• day of. May, 2003. City of Se Valley Mayor Michael DeVlen ing ATTEST: 5ekah, Interim City Clerk, Ruth Muller S:\ResolutionslResolution 03-031 -J ohDescriptions.DOC Approved as to Form: Tr/ City ey, Stan I y M. Schwartz S:1Resalutians\Resolution 03-031 -Joh Descript ions.DOC Class Title: Police Chief Department: Police Division: NA Date: May 13, 2003 GENERAL PURPOSE CITY OF SPOKANE VALLEY POSITION DESCRIPTION Job Code Number: 140 Grade Number: NA FLSA Status: Exempt Location: Spokane County Sheriff's Office Performs a variety of complex administrative, supervisory and professional work in planning, coordinating and directing the activities of the Spokane Valley Police Department under a contract with the Spokane County Sheriff's Office. SUPERVISION RECEIVED: Works under the broad policy direction of the City Manager and the general supervision of the Spokane County Sheriff. SUPERVISION EXERCISED Exercises supervision over all contracted police department staff directly or through subordinate supervisors. ESSENTIAL DUTIES AND RESPONSIBILITIES Under a contract for police services with the Spokane County Sheriff's Office, plans, coordinates, supervises and evaluates police department operations for the City of Spokane Valley. Develops policies and procedures for the Department in order to implement directives from the City Council or Manager. Plans and implements a law enforcement program for the City in order to better carry out the policies and goals of City Management and Council; reviews Department performance and effectiveness, formulates programs or policies to alleviate deficiencies. Coordinates the information gathered and work accomplished by various officers; assigns officers to special investigations as the needs arise for their specific skills. Assures that personnel are assign to shifts or working units which provide optimum effectiveness in terms of current situations and circumstances governing deployment. Evaluates evidence, witnesses, and suspects in criminal cases to correlate all aspects and to assess for trends, similarities, or for associations with other cases. Police Chief Advises the City Manager on contract issues as they related to the budget for the Department; plans for and reviews specifications for new or replaced equipment. Directs the development and maintenance of systems, records and legal documents that provide for the proper evaluation, control and documentation of police department operations. Trains and develops Department personnel. Handles grievances, maintains departmental discipline and the conduct and general behavior of assigned personnel. Prepares and submits periodic reports to the City Manager regarding the department's activities, and prepares a variety of other reports as appropriate. Meets with elected or appointed officials, other law enforcement officials, community and business representatives and the public on all aspects of the department's activities. Cooperates with County, State and Federal law enforcement officers as appropriate where activities of the police department are involved. Ensures that laws and ordinances are enforced and that the public peace and safety is maintained. PERIPHERAL DUTIES Directs investigation of major crime scenes. Performs the duties of subordinate personnel as needed. Analyzes and recommends improvements to equipment and facilities, as needed. DESIRED MINIMUM QUALIFICATIONS Education and Experience: (A) Graduation from a college or university with a Bachelor's degree in police science, law enforcement, criminal justice, public administration or a closely related field; (B) Seven (7) years of experience in police work, three years of which must have been equivalent to police sergeant or higher; and (C) Completion of the basic law enforcement training academy or equivalent; or (D) An equivalent combination of education and experience. Police Chief 2 Necessary Knowledge, Skills, Abilities, and Other Traits: (A) Thorough knowledge of modern law enforcement principles, procedures, techniques, and equipment; considerable knowledge of applicable laws, ordinances, and department rules and regulations; (B) Skill in the use of the tools and equipment listed below; and (C) Ability to train and supervise subordinate personnel; ability to perform work requiring good physical condition; ability to communicate effectively orally and in writing; ability to establish and maintain effective working relationships with subordinates, peers and supervisors; ability to exercise sound judgment in evaluating situations and in making decisions; ability to give verbal and written instructions; ability to meet the special requirements listed below; (D) A key value of the City is customer service. This position requires considerable knowledge, ability and skill in the principles and practices of excellent customer service as practiced in both the private and public sectors. It requires the ability to effectively meet and deal with the public; the ability to handle stressful situations; the ability to greet and respond to customers in a friendly, pleasant and professional manner using appropriate inflection, grammar and syntax; the ability to establish and maintain effective working relationships with employees, supervisors, and the general public; the ability to maintain a professional, courteous, and pleasant demeanor in difficult and stressful situations; and the ability to diplomatically deal with difficult people. A willingness to expend extra effort to help the public find answers or information relative to their inquiry or complaint is expected. SPECIAL REQUIREMENTS: (A) Must possess, or be able to obtain by time of hire, a valid State Driver's License without record of suspension or revocation in any state; (B) Ability to meet Department's physical standards; and (C) Basic law enforcement training certification or equivalent. TOOLS AND EQUIPMENT USED Police car, police radio, radar gun, handgun and other weapons as required, sidehandle baton, handcuffs, breathahlyzer, pager, first aid equipment, personal computer including word processing software. PHYSICAL DEMANDS The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Police Chief 3 While performing the duties of this job, the employee is frequently required to sit and talk or hear. The employee is occasionally required to stand; walk; use hands to finger, handle, or operate objects, controls, or tools listed above; reach with hands and arms; climb or balance; stoop, kneel, crouch, or crawl; and taste or smell. The employee must occasionally lift and/or move more than 100 pounds. Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus. WORK ENVIRONMENT The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee frequently works in outside weather conditions. The employee occasionally works near moving mechanical parts; in high, precarious places; and with explosives and is occasionally exposed to wet and/or humid conditions, fumes or airborne particles, toxic or caustic chemicals, extreme cold, extreme heat, and vibration. The noise level in the work environment is usually moderate. SELECTION GUIDELINES Formal application, rating of education and experience; oral interview and reference check; job related tests may be required. The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change. Approval: Approval: Human Resources Manager City Manager Effective Date: May 13, 2003 Revision History: Police Chief 4 Job Description Development Why it is important to review and update Job Descriptions: • Accurate descriptions help you articulate the most important outcomes you need from an employee performing a particular job. • Job Descriptions memorialize the essential functions of the position as well as other functions that may be marginally required. • Sets out the purpose of the job (why does it exist). • Includes educational, experience, skill, and knowledge requirements. It lists any licenses or endorsements that may be required (such as a commercial driver's license). • The description should set out information regarding expected contacts (e.g., meets regularly with public; routinely interacts with elected officials) and list organizational relationships (e.g., reports to city manager). • Develops the 'Yardstick" for the selection process. Recommendations as to how to develop a Job Description: • Start by identifying the behaviors that are important for a candidate to show that lead to excellent performance. (In your mind's eye see the person doing the job.) • Once a good grasp of the behaviors is reached, determine what essential duties should be assigned to the position. (Why does the position exist?) • With the wanted behaviors and the desired outcomes determined, the experiences and education required to perform the required duties can then be developed. • With the required duties developed, determine the physical, sensory and mental abilities needed to perform those duties. Topics to avoid while creating or updating job descriptions: • Duties or qualifications that unlawfully discriminate against persons based upon a person's physical ability, race, religion, gender and others stated in State and Federal regulations should be avoided. A more comprehensive list of discriminatory qualifications include: o Gender o Age o Disability (can be considered post offer) o Race o Religion o Color o Sex o Marital Status o National Origin o Genetic Information o Honorably discharged Veteran or Military Status o Sexual Orientation o Creed (a system of beliefs that guide a person's actions) o Use of a service animal • Although the topics cited in regulations are to be avoided, the values a person holds professionally can be considered when directing the work of the employee. As an example, it is unlawful to require an employee to be married, however the values of fulfilling commitments and being honest, which are important in both being married and completing assigned duties, can be required. Applicable Regulations: RCW 49.60.030 - Freedom from discrimination — Declaration of Civil Rights Title VII of the Civil Rights Act of 1964 Equal Pay Act of 1963 (EPA) Age Discrimination in Employment Act of 1967 (ADEA) Title I and Title V of the Americans with Disabilities Act of 1990, as amended (ADA) Sections 501 and 505 of the Rehabilitation Act of 1973 Title 11 of the Genetic Information Nondiscrimination Act of 2008 (GINA), Civil Rights Act of 1991 To: From: Re: DRAFT ADVANCE AGENDA as of April 14, 2016; 8:00 a.m. Please note this is a work in progress; items are tentative Council & Staff City Clerk, by direction of City Manager Draft Schedule for Upcoming Council Meetings Special Meeting: Friday, April 22, 2016; 9:30 noon; Spokane Regional Council of Governments meeting; Fair & Expo Ctr. Conference Facility, 404 NHavana Street April 26, 2016, Formal Meeting Format, 6:00 p.m. Proclamation: Older Americans Month 1. Consent Agenda (claims, payroll, minutes) 2. Second Reading Proposed Ordinance 16-004 Uncovered loads — Erik Lamb 3. First Reading Proposed Ordinance 16-006 Annual Comp Plan Amend.(CPA-2016-0001)- 4. First Reading Proposed Ordinance 16-007 Zoning Map Amendment — K. Kendall 5. Admin Report: City Hall Bid Opening — Eric Guth 6. Comprehensive Plan, Tiny Homes — Micki Harnois 7. Admin Report: Advance Agenda — Mayor Higgins 8. Info Only: Dept Reports Mav 3, 2016, Special Meeting: 5:00 p.m. 1. Motion Consideration: City Hall Bid Award Eric Guth [due Mon, Apr 18] (5 minutes) (15 minutes) K.Kendall (20 min) (5 minutes) (15 minutes) (25 minutes) (5 minutes) [*estimated meeting: 90 minutes] Mav 3, 2016, 6:00 p.m. Study Session Meeting: Joint Council & Planning Commission —2-3 hours Comprehensive Plan Discussion — John Hohman, Tadas Kisielius May 10, 2016, Formal Meeting Format, 6:00 p.m. [due Mon, May 2] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Second Reading 2016 LTGO Bond Ordinance 16-005 (City Hall) — Mark Calhoun (20 minutes) 3. Second Reading Proposed Ordinance 16-006 Annual Comp Plan Amend.(CPA-2016-0001)—K.Kendall(10 min) 4. Second Reading Proposed Ordinance 16-007 Zoning Map Amendment — Karen Kendall (5 minutes) 5. Admin Report: HCDAC Report — Christine Barada, Tim Crowley 6. Admin Report: Advance Agenda — Mayor Higgins 7. Info Only: 2017 Stormwater Mgmt Program Plan Update Mav 17, 2016, Study Session Format, 6:00 p.m. 1. 2017 Stormwater Mgmt Program Plan Update — Eric Guth 2. Advance Agenda — Mayor Higgins [*estimated May 24, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Motion Consideration: Stormwater Management Program Plan Approval — Eric Guth 3. Admin Report: Advance Agenda — Mayor Higgins 4. Info Only: Department Reports May 31, 2016, Study Session Format, 6:00 p.m. 1. Advance Agenda — Mayor Higgins June 7, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins June 14 2016, Special Mtg, Budget Workshop, 8:30 a.m.- 4:30 p.m. (no evening mt Council Chambers Draft Advance Agenda 4/14/2016 10:27:05 AM (30 minutes) (5 minutes) meeting: 75 minutes] [due Mon, May 9] (15 minutes) (5 minutes) [due Mon, May 16] (5 minutes) (10 minutes) (5 minutes) [due Mon, May 23] (5 minutes) [due Fri• May 27] (5 minutes) (5 minutes) r) [due Mon, June 6] Page 1 of 2 June 21-24: AWC Conference June 21, 2016, Study Session Format, 6:00 p.m. 1. Advance Agenda — Mayor Higgins June 28, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins 3. Info Only: Department Reports July 5, 2016, Studv Session Format, 6:00 p.m. 1. Review LTAC Council Goals and Priorities — Mark Calhoun 2. Advance Agenda — Mayor Higgins July 12, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins July 19, 2016, Studv Session Format, 6:00 p.m. 1. Advance Agenda — Mayor Higgins July 26, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Consensus on LTAC Council Goals and Priorities — Mark Calhoun 3. Admin Report: Advance Agenda — Mayor Higgins 4. Info Only: Department Reports August 2, 2016 — No Meeting (National Night out) August 9, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: 2017 Budget Estimates Revenues & Expenditures — Chelsie Taylor 3. Admin Report: Advance Agenda — Mayor Higgins *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Annexation Avista Electrical Franchise Carnahan & 8th Intersection Domestic Violence Advocacy (Police) Drug Enforcement Update — Rick VanLeuven Economic Development Marketing Plan Emergency Preparedness Greenhouse Gas Emissions Policy Independent Investigative Counsel Draft Advance Agenda 4/14/2016 10:27:05 AM [due Mon, June 13] (5 minutes) [due Mon, June 20] (5 minutes) (5 minutes) [due Mon, June 27] (25 minutes) (5 minutes) [due Tue, July 5] (5 minutes) (5 minutes) [due Mon, July 11] (5 minutes) [due Mon, July 18] (5 minutes) (15 minutes) (5 minutes) [due Mon, May 2] (5 minutes) (20 minutes) (5 minutes) Law Enforcement Contract Review Ord 16-003 Mining Ext. (expires 8/21/16) Sidewalk/snow removal SVMC 2.45 Review/Discussion SRTMC Agreement (June/July 2016) TIP 2017-2022 (May/June) Trans -Pacific Partnership Trade Agreement Page 2 of 2