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2016, 11-15 Study SessionAGENDA SPOKANE VALLEY CITY COUNCIL STUDY SESSION FORMAT Tuesday, November 15, 2016 CITY HALL COUNCIL CHAMBERS 11707 East Sprague Avenue, First Floor (Please Silence Your Cell Phones During the Meeting) 6:00 p.m. DISCUSSION LEADER SUBJECT/ACTIVITY GOAL CALL TO ORDER ROLL CALL Proclamation: World Pancreatic Cancer Day 1. Gloria Mantz, and Representatives from Atlas Advertising 2. Mike Stone 3. Mike Stone 4. Chelsie Taylor 5. Eric Guth, Steve Worley 6. Eric Guth 7. Mayor Higgins Marketing Study Update Parks Maintenance Contract CenterPlace Catering Contract Lodging Tax Advisory Committee Recommendations Barker Overpass Design 2017 FASTLANE Grant Opportunity Advance Agenda Discussion/Information Discussion/Information Discussion/Information Discussion/Information Discussion/Information Discussion/Information Discussion/Information 8. Information Only (will not be reported or discussed): Browns Park Lease Update 9. Mayor Higgins 10. Mark Calhoun ADJOURN Council Check in City Manager Comments Discussion/Information Discussion/Information Study Session Agenda, November 15, 2016 Page 1 of 1 ary Spokane ro ttamatt n City of Spokane ra1Thy, Washington World Tancreatic Cancer Awareness Day WHEREAS, In 2016, an estimated 53,070 people in the United States will be diagnosed with pancreatic cancer, one of the deadliest cancers, and 41,780 will die from the disease, with approximately 920 deaths occurring in Washington State; and WHEREAS, Pancreatic cancer surpassed breast cancer this year to become the third leading cause of cancer death in the United States, and it is projected to become the second leading cause by 2020; and WHEREAS, Pancreatic cancer is the seventh most common cause of cancer -related death in men and women throughout the world, and the only major cancer with a five-year relative survival rate in the single digits at just 8%; and WHEREAS, When symptoms of pancreatic cancer present themselves, it is generally in later stages, and 71% of pancreatic cancer patients die within the first year of their diagnosis; and WHEREAS, There will be an estimated 418,451 new pancreatic cancer cases diagnosed worldwide by 2020; and WHEREAS, The good health and well-being of the residents of Spokane Valley are enhanced as a direct result of increased awareness about pancreatic cancer and research into early detection, causes, and effective treatments. NOW, THEREFORE, 1, Rod Higgins, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Councilmembers, do hereby proclaim November 17, 2016, as World Pancreatic Cancer Awareness Day for the City of Spokane Valley, and I urge Spokane Valley citizens to join in this special observance and to recognize and support the Pancreatic Cancer Action Network. 4 Dated this 4th day of November 2016. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 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: Economic Development Marketing Strategy GOVERNING LEGISLATION: None PREVIOUS COUNCIL ACTION TAKEN: Motion to award the contract to Atlas Advertising and authorize the Acting City Manager to finalize and execute the contract on May 24, 2016. BACKGROUND: In 2012, a marketing effort was initiated to promote the City as a great place to do business, live or visit. MDI Marketing provided these services to the City until 2015. In May 2016, the City executed a contract with Atlas Advertising to create and implement an economic development marketing strategy. Atlas Advertising was selected because of their extensive experience working with municipalities in economic development strategic planning and marketing, and their multiple connections with site selectors across the country. The week of June 27, 2016, the Consultant visited the City and conducted a series of stakeholder interviews and surveys to determine the community assets, challenges and opportunities. Tonight, the Consultant will discuss the proposed marketing strategy and unveil proposed logos and taglines to use in the implementation of the economic development marketing strategy. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: None. STAFF CONTACT: Gloria Mantz, Development Engineer. ATTACHMENTS: Economic Development Marketing Strategy MARKETING STRATEGY Version 2 — October 2016 CONTENTS Executive Summary 1 The Challenge 2 Description of the City of Spokane Valley 3 Research and Discovery 4 Concurrent Regional Initiatives 6 Competitor Analysis 7 SWOT Analysis 8 Desired Outcomes 14 Connecting Strategic Elements 15 Brand Positioning 16 Objectives and Targets 17 Community Metrics 18 Resource Allocation 19 Tactics 21 Key Performance Indicators 28 Appendix 29 AS ADVERT S NG PAGE 1 EXE 7 r ( WL A RY The City of Spokane Valley is ambitiously exploring opportunities to position itself as a great community to live, work and visit through the development of a comprehensive plan and multiple segment strategies. There is certainly much potential for the City of Spokane Valley. Located within the Spokane MSA in a highly valuable manufacturing corridor with robust recreational opportunities, the community is well positioned for growth in the residential, tourism and economic sectors. In addition to product development, one of the community leadership's greatest challenges will be their ability to generate buy -in among residents and partner organizations for investing in the future. This marketing strategy and plan includes an overview of our research, an analysis of the City of Spokane Valley's current situation, as well as recommendations for positioning the community for local engagement, tourism and economic development. This document aims to answer the following questions: Who are the target audiences within the focus areas of IocaI engagement, tourism and economic development? What are the priorities for investment for each focus area? How can the City of Spokane Valley drive awareness to each focus area and what tactics can be used? Desired outcomes of the engagement: After conducting both in-person interviews and an online survey, Atlas Advertising reconsidered and reshaped the desired outcomes to focus our marketing efforts and overall scope of work. Below are the outcomes identified and agreed upon by stakeholders. 1. Resident engagement and business retention - Foster a sense of community pride among residents and companies that compels them to stay and grow with the City of Spokane Valley. 2. Business recruitment- Capitalize on the business park and diversify the economy. 3. Set the stage for future tourism promotion - Develop new tourism assets to drive long-term competitiveness that enables promotional activities that attract regional drive market visitors. E While the City of Spokane Valley has a number of assets that appeal to residents and businesses alike, the local economy primarily depends on the raw materials manufacturing industry and retail sales that are both known to fluctuate. Despite some limited regional efforts, many leaders and residents within the City are focused on assets and efforts within the municipal boundaries. In addition, this relatively newly formed community has not yet come together with an identity that accurately reflects the assets and overall personality of the City. PAGE 3 pJ'L Incorporated in 2003, the City of Spokane Valley is located within the Spokane MSA near the eastern border of the state of Washington. It is the 9th largest city in Washington state and has a population of nearly 700,000 people. The community has a significant retail base including the Spokane Valley Mall, numerous auto dealerships and many restaurants. Major public facilities include CenterPlace Regional Event Center, Avista Stadium (home to the Spokane Indians, a minor league baseball team) and the Spokane County Fair and Expo Center. An industrial parkin the region is primarily focused on the manufacturing sector producing mainly raw materials including aluminum, concrete and other building materials, and electronic components. Other major economic contributors and employers include traditional community employers (healthcare, education and local government), logistics and distribution, and non-metallic mineral mining. Workers include an almost equal mix of City of Spokane Valley residents, who appreciate the low cost of housing and ample land, as well as regional commuters from Liberty Lake, Spokane and Idaho border towns. Outdoor recreation is one of the City of Spokane Valley's major assets with multiple hiking and biking trails, including Centennial Trail's 37 miles of paved path alongside the Spokane River. The community is near more than 75 lakes and is a gateway to majestic mountains and four ski resorts within an hour's drive. Community Values: • Community Identity and Pride - the City of Spokane Valley promotes an environment that supports the home and family, and job and education opportunities. • Focus on the Future -the City of Spokane Valley is a visionary place, encouraging citizens and their government to look to the future beyond the present generation, and to bring such ideas to public discussion, enhancing a sense of community identity. • Open, Collaborative Government - the City of Spokane Valley values a "user-friendly government, in which governance practices and general operations consider how citizens will be served in the most responsive, effective and courteous manner." .Source: www.spokanevailey.org LL COMMUNITY VIS'ON: "A community of opportunity where individuals and families can grow and play, and businesses will flourish and prosper." RESEARCH AND DISCOVERY To inform our strategic marketing recommendations, Atlas Advertising works closely with our clients to gather background documentation of past and present marketing efforts, along with conducting conversations and online surveys with key stakeholders and partners. We blend this mix of quantitative and qualitative details with our experience and best practices in other communities to present recommendations specifically tailored to the City of Spokane Valley. PAGE 5 e r Stakeholder research was conducted with residents of the City of Spokane Valley and regional leaders both in-person and via digital surveys from June to the end of July, 2016. Insights and perspectives were provided about the community's assets and also suggested priorities for efforts to attract and engage residents, tourists and businesses to the area. Attendees and survey respondents included: City Council Members, City Staff Members, Regional Partners (i.e. Greater Spokane Incorporated, the Chamber of Commerce, Visit Spokane), Business Leaders, Educators and Community Members. Community Engagement Participants felt strongly that efforts need to be made to engage the community and build resident pride in the City of Spokane Valley.They are interested in further developing existing festivals and events and adding to the community calendar with additional events and a farmers' market. Participants also emphasized the need for clear communication to residents about the city's efforts to attract tourists and businesses. Tourist Attraction Feedback was focused on creating additional products to attract visitors to the area. Suggestions included riverfront development, a sports facility and events facilities (i.e. youth sports, performing arts, mega sports for the region). Participants indicated that the measure of success for tourist attraction efforts would be an increase in overnight visitors as well as occupancy rates in the off seasons. Economic Development Suggestions centered around business attraction including articulating more clearly what the City of Spokane Valley has to offer and forging new partnerships between the private sector and the city. Participants emphasized that efforts needed to be on both business retention and attraction and that it is important to diversify the industry mix in the community. Overall, they define success as a rise in the median income of residents in the City of Spokane Valley and a decrease in the unemployment rate. a ATLAS ADVERTISING PAGE 6 CONCURRENT REGIONAL INITIATE, The Big Five Prior to the research and discovery undertaken by Atlas Advertising, the Greater Spokane Valley Chamber of Commerce conducted a community engagement effort to identify initiatives that will "nurture community vitality and stimulate economic prosperity in the Greater Spokane Valley region." 274 Spokane Valley stakeholders participated in the process which generated 1,081 "thoughts and ideas." The Big Five initiatives identified by the process include: 1. Promoting and protecting the vitality of the outdoors. (Greater Outdoors) Through collaboration with business, government entities, and citizen groups, the Chamber encourages opportunities to enhance the quality of recreation, nature and parks, while stimulating economic growth. 2. Promoting the Greater Spokane Valley as an emerging leader in high-tech manufacturing. (Greater Goods) With a strong manufacturing base present in the Greater Spokane Valley, this initiative supports a sustainable economic future for the manufacturing industry through advocacy and innovative collaboration. 3. Integrating business and education to create the workforce of the future. (Greater Learning) The vitality of our community resides in the quality of our workforce. This initiative brings together industry and education to facilitate innovative learning opportunities and partnerships, which inspire a vibrant and educated workforce for the future. 4. Growing medical research from concept to cure. (Greater Cures) By focusing on the expertise of medical providers, local medical schools and available suitable property in the Greater Spokane Valley, this initiative propels the advancement of medical research for our region. 5. Building an enterprising identity for the Greater Spokane Valley region. (Greater Vision) By recognizing the strengths of the Greater Spokane Valley region, this initiative defines and promotes our region for its quality of life, dynamic workforce, and vibrant research, manufacturing and technology industries. 2017-2037 Comprehensive Plan Over the course of 2016, the City of Spokane Valley undertook an extensive review and update of the City's Comprehensive Plan. In addition to meeting the requirements outlined by the Washington State Growth Management Act, the City's updated plan will shape future growth and development. The recommendations outlined in this document coincide with a number of those in the Comprehensive Plan, updated in 2016. Tourism Sector Analysis Community Attributes conducted an analysis of the City of Spokane Valley's tourism assets and opportunities in 2016. Their study is intended to be used in conjunction with a retail strategy to contribute to the City's Comprehensive Plan, updated in 2016. The recommendations included in this document are reflective of the contributions made in the Community Attributes work while also building upon that report's contributions. Retail Attraction Study Community Attributes completed a thorough review of the City of Spokane Valleys retail trade area and demographics as well as recommendations for growing the community's retail sector. Several of the suggestions made by Community Attributes dovetail with the tactics put forth in this document, in particular for the community and tourism. PAGE 7 COMPETITORrA -.SIS To identify the attributes that set the City of Spokane Valley apart in the marketplace, we look at the landscape of competing communities for each of the target groups. This competitor analysis considered entities in the regional vicinity to meet the City of Spokane Valley's goal of differentiating itself within the Spokane MSA and western Idaho. COMMUNITY ENGAGEMENT Spokane MSA Communities i.e. Liberty Lake, West Plains Western Idaho Communities i.e. Post Falls TOURIST ATTRACTION Downtown Spokane and Spokane County Washington State Communities Le. Tri Cities, Walla Walla Coeur d'AIene, Priest Lake and Sandpoint, ID ECONOMIC DEVELOPMENT Spokane MSA Communities i.e. Liberty Lake, West Plains Western Idaho Communities i.e. Post Fails SWOT ANALYSIS A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis was developed to explore how the City of Spokane Valley can best align its resources within the Spokane regional and national competitive environment. in addition to the traditional SWOT categories, we have added a Neutral section to call out qualities of the community that are important to note but are also common among competitors. The goal of the SWOT exercise is to determine where the City of Spokane Valley can capitalize on its assets and advantages to build Iocal pride and engagement, attract tourists and position itself as an attractive business destination. The analysis was based on interviews with City Council and staff members, local business leaders, educators, community members and regional stakeholders such as Greater Spokane incorporated, the Greater Spokane Valley Chamber of Commerce and Visit Spokane. PAGE 9 COMMUNITY ENGAGEMENT Recreation assets such as the Spokane River, mountain bike parks in Camp Sekani, hiking trails in Dishman Hills, the Appleway and Centennial Trails, proximity to 75 lakes and rivers and access to Mt. Spokane and Lake Coeur D'Alene, Conservative, family-oriented, laid back community culture with an affordable cost of living (no income tax). Quality housing product averaging less than $200 per square foot. Located within a top 100 MSA with freeway proximity, a 20 -minute average commute and access to quality health care and education. Time of change in local leadership, which creates an opportunity to articulate unified direction and be transparent with goals and results. Community focus on neighborhood groups can be capitalized to generate community identity and instill pride. Leverage the central location of the city and regional assets. Lack of city identity with minimal citizen involvement in community development efforts. No identified city center for gatherings or concentrated activity. Community skepticism about new direction and investments and competing viewpoints could threaten efforts and encourage divisiveness. Traffic interruptions at seven at -grade crossings, negative air quality impacts and the risks of fires and derailments are all connected to Vancouver Energy's proposal that increases the number of trains traveling through the City of Spokane Valley by nearly 1,500 trips each year. 0,3 ATLAS ADVERTISING PAGE 10 TOURIST ATTRACTION A number of hotels, restaurants and retail businesses /f that could extend and enhance the visitor experience. Key examples include Latah Creek Winery and the Spokane Valley Mall. Limited destination product to attract visitors for purposes outside of outdoor recreation and shopping. No identified city center for gatherings or concentrated activity. This presents a barrier to usage as amenities are spread out Weak regional partner collaboration (i.e. Visit Spokane). Lack of travel information on booking sites (i.e. Travelocity) for hotels, restaurants and attractions. Lack of city identity with distinguishing characteristics that attract visitors and generate preference over other regional options. Recreation assets such as the Spokane River, mountain bike parks in Camp Sekani Park, hiking trails in Dishman Hills, the Appleway and Centennial Trails, proximity to 75 lakes and rivers and access to Mt. Spokane and Lake Coeur D'Alene. Positioning the City of Spokane Valley as a day trip within the regional drive market. In particular, promoting the city's family -friendly hotels and shopping amenities. Raising the profile of the City of Spokane Valley and its amenities to make the community a location of choice within the region. Development of tourism products (i.e. retail amenities along the river and trails, festivals and events) to increase awareness of and traffic to the community. *See Appendix for details. Community skepticism about new direction and investments and competing viewpoints could threaten efforts and encourage divisiveness. PAGE 11 ECONOMIC DEVELOPMENT With 80 buildings ranging from 1,200 to 270,000 square feet, the Business & Industrial Park is a significant asset for business attraction. With available space and built -to -suit options, the park connects companies via two rail lines and Interstate 90. The City has direct access to transportation infrastructure including east -west connections via Interstate 90, both BNSFand Union Pacific rail, 9 airports and two major ports all within a 300 -mile radius. Recent growth has been focused within service industries as opposed to economic driver companies. Lack of industrial sites for business location that could employ the existing training of the local workforce. Lack of city identity to attract businesses and generate preference over other regional options. Commitment to business success with streamlined permitting and regulations processes and a business -oriented economic development team. 500 acres of vacant industrial land with efforts underway to add utility access. Population growth means the city will be at the center of the region within a generation. New job creation in health services, manufacturing, transportation, warehousing, professional and education industries provides an opportunity for related industries and supply chain companies. Strengthened economic development focus and prioritization can improve responsiveness to industries and demonstrate commitment to business' success in the City of Spokane Valley. Community skepticism about new direction and investments and competing viewpoints could threaten efforts and encourage divisiveness. Competition from Idaho communities and their aggressive incentives could pull investment away from the region. The area's aging population means a vacuum within the workforce which could raise doubts about the ability to provide a trained workforce. Port of Seattle tp Seattle 290 miles Seattle -Tacoma International 295 miles Port of Tacoma 300 miles WASHINGTON Tacoma Rich and 0 Pasco 0 0 Kennewick Fairchild Airr©rce Base 24 miles Spokane lnterna Fional 16 miles Coeur d'Alene Airport 25 miles Coeur d'Alene Pulman -Moscow Regional 88 miles Lewiston-Nez Perce County Airport (1Q 1 l7 miles `-- Boise, ID Salt Lake Clty, UT Missoula, MT Billings, MI IDAHO DESIRED OUTCOMES To focus our marketing efforts, the outcomes below were identified by stakeholders and agreed upon by stakeholders. Means to achieve these outcomes follow as objectives for each of the identified targets. 1. Resident engagement and business retention - Foster a sense of community pride among residents and companies that compels them to stay and grow with the City of Spokane Valley. 2. Business recruitment - Capitalize on the business park and diversify the economy. 3. Set the stage for future tourism promotion - Develop new tourism assets to drive long-term competitiveness that enables promotional activities that attract regional drive market visitors. PAGE 15 E C ELEMENTS To effectively achieve both the short- and long-term successes for the City of Spokane Valley, each component of our overall strategy overlaps and builds on one another. Desired Outcomes What the efforts are ultimately guided by, these high-level outcomes were identified and agreed upon by stakeholders. Brand Positioning How we speak to our target audience through marketing creative and messaging. Objectives & Targets The more specific version of how we will achieve the desired outcomes and who is within our intended audiences. Community Metrics How we will ensure these efforts stay on track and report back on their progress through these objective and measurable means. Resource Allocation How we intend to use marketing dollars and resources in both the short - and near-term. ATLAS ADVERTISING PAGE 16 FfiLSITONING To frame marketing efforts moving forward, Atlas Advertising crafts brand positioning statements that expresses how a community fills the needs of its targets in ways that its competitors do not.These statements are used to identify the location's niche. Positioning statements are leveraged to formulate marketing creative and messaging. Community Engagement For residents and existing businesses, the City of Spokane Valley is the ideal home in the S.•k.n- and Ws ern Idaho re.i•ns because of its employment opportunities, affor able housing and outdoor quality of life. Tourist Attraction For visitors from throughout the region, the City of Spokane Valley is a destination of choice within the Spokane and Western Idaho regions for shopping and direct access to natural outdoor recreational assets. Economic Development For mid-sized manufacturing companies, the City of Spokane Valley is a location of choice within the Spokane and Western Idaho regions because of its transportation infrastructure, low utility costs, available sites and quality workforce. PAGE 17 OBJECTIVES AND TA - 2 W S Our core objectives are designed to meet the City of Spokane Valley's goat to be recognized as a viable, thriving community that prioritizes quality of life, offers outstanding recreational opportunities for citizens and visitors and fosters business growth. To best achieve these core objectives, the focus will be on targets within each group. There are many individuals and groups who could be considered customers or stakeholders of the City of Spokane Valley. Primary targets defined within the objectives categories will be the main focus of the leadership's efforts while secondary targets are influencers of the primary targets. Objective 1 Foster a sense of community pride among residents that compels them to stay in the City of Spokane Valley as well as encourage others to visit and relocate. Primary Target: Current residents of the City of Spokane Valley Objective 2 Increase awareness of the City of Spokane Valley as a great place to live and work. Primary Target: Residents of the Spokane metropolitan area and western Idaho Secondary Targets: News media, community leaders Objective 1 Create awareness and improve perceptions of the City of Spokane Valley among residents within the regional drive market Target: Residents of the Spokane metropolitan area and western Idaho Objective 2 Capitalize on existing visitors to the area by connecting them to recreational and shopping opportunities in addition to their planned itineraries. Target: Existing business and recreational travelers Secondary Targets: News media; retail, restaurant and lodging executives and employees in the community Objective Create awareness and foster positive perceptions about the City of Spokane Valley as a business -friendly location among existing businesses and prospects. Target: Site consultants—primarily focused on manufacturing and advanced manufacturing Target: C-Ievel executives and business owners currently located in the City of Spokane Valley Target: C-Ievel executives of traditional and advanced manufacturing companies, and companies driven by conservative values and leaders PAGE 18 COMMUNITY To determine the effectiveness of our plan, we need to define success. We suggest using the following measures: COMMUNITY ENGAGEMENT Percentage increase of residents In the City of Spokane Vafley beyond the county's growth Z i— 0 Le D u Oc r 4 Increase hotel occupancy rates Increase in sales taxes collected ECONOMIC DEVELOPMENT Number of jobs created and retained above the city population's current median income PAGE 19 RESOURCE ALLOCATION The leadership team for the City of Spokane Valley has determined that community resources should be divided between three primary efforts: IocaI engagement and pride, tourist attraction and economic development. In the short term, the majority of marketing funds will be utilized for community engagement and economic development efforts as the City develops tourism product. Over time, the resources will shift, with more funds concentrated in the tourist attraction and business development efforts. SHORT TERM (0-2 YEARS) NEAR TERM (2-5 YEARS) COMMUNITY ENGAGEMENT Q3~Y�~ rte. X45% -. 7 -TOURIST ATTRACTION 15% ECONOMIC DEVELOPMENT 40% zi TACTICS The recommended tactics are specific action steps to achieve the City of Spokane Valley's objectives. Suggestions include both product development and marketing initiatives to make the community more attractive for residents, tourists and businesses. Some tactics will overlap in multiple categories as they impact targets multiple focus areas. rAl ATLAS ADVERTISING PAGE 22 CUM 1:,1N'1 EN 2,1_2- SHORTTERM (0-2 YEARS) 1. Brand Development: Develop a new City of Spokane Valley brand through the creation of a city logo and tagline. As the new City Nall is built, fully incorporate the new brand throughout the facility and surrounding area. Display the Iogo on signage atthe entrance(s) to the city, at parks, on pole banners and on city assets such as vehicles and buildings. Use the logo on printed materials and provide local businesses with decals to display at their entrances. Encourage use of the logo among community groups. Unveil the new logo at a community event (i.e. Interstate Fair, Valley Fest) and distribute the logo with an accompanying press release to regional news outlets. Provide talking points for community leaders about the importance of the brand, why it was developed and what it is meant to convey. Update the City of Spokane Valley's quarterly newsletter to reflect the new brand and utilize the publication to promote the city's efforts to attract residents, tourists and businesses. 2. Greater Spokane Inc.. Content: Identify and develop content that Greater Spokane Inc. can easily integrate into www.MoveToSpokane.com to catalyze interest in the City of Spokane Valley. For example, there is not a City of Spokane Valley resident featured among the 'Faces' on this site. 37.11 _ 3_ Social Media Campaign: Use Facebook, Twitter and Instagram to connect with residents. Create evergreen content about the City of Spokane Valley that utilizes photography of the community's landscape. Develop additional posts that feature local businesses, recreational amenities and events as appropriate. Whenever possible, include residents in the content via photographs, testimonials and quotes. Follow and share (Facebook), re -tweet (Twitter) and re - gram (lnstagram) local residents' and groups' content that showcases the community's assets. Create a hashtag campaign that residents can use on Facebook, Twitter and Instagram posts to encourage engagement with the community. Consider integrating the hashtag with the new logo for use on community signage and business decals. Examples of other municipality campaigns include #goBR, #OmahaWeekend, #TakeOnPokono, #ItsAllGoodEP, #MTLmoments, and #onlyinSF. Consider allowing community Ieaders to take over your social media accounts to share what they love about the community from their perspective. 4. Awards and Accolades: Determine selection criteria for community rankings such as Forbes Magazine's "America's Ten Fastest Growing Cities" and implement a plan to compete. Apply for marketing and community awards such as the Spokane Addy's or the Association of Washington Cities' Municipal Excellence Awards. Work with Spokane Valley businesses to secure recognition in Greater Spokane Incorporated's AGORA Awards. 5. Community Champion Testimonials: Identify local champions to articulate the benefits of living, working and doing business in the City of Spokane Valley. Develop testimonials by these individuals that can be used in marketing efforts such as advertisements, billboards, local signage, etc. 6. Enhanced City Communications: In addition to updating the existing City communications, including the quarterly newsletter, the new brand elements should incorporated in each touch point with residents including email signatures with the logo and tagline and updated messaging that reflects the positioning recommendations for community engagement. NEAR TERM (2-5 YEARS) 1. Product Development: Identify and develop local and visitor engagement opportunities such as new events in the community. Suggestions include a farmers' market and arts market, as well as festivals. Consider coordinating with programs and contests related to community pride initiatives. 2. Community Engagement: Provide updates about community initiatives for tourism and business attraction to the local community through neighborhood and religious forums to build confidence in the investments being made. Conduct editorial board meetings with regional news outlets semi-annually to inform them about community initiatives to create buy -in and encourage coverage of efforts. 3. Community Pride: Expand the testimonial campaign with the addition of new champions and marketing channels. Develop programs and contests for school children to articulate and celebrate the community's history, natural resources and amenities (i.e. coloring contests, field days, nature explorations, art exhibits). Use these occasions to discuss the community's positive points of difference in the news media. 4. Workforce Development: Encourage partnerships between local businesses and education institutions to develop training programs to educate or re-train workers in preparation for the recruitment of advanced manufacturing companies. ATLAS ADVERTISING PAGE 24 TOURIS Ak, SHORT TERM (0-2 YEARS) 1. Product Development: Pursue and invest in opportunities to enhance the City of Spokane Valley's tourism product such as a regional athletic venue. 2. Brand Development: Develop a new City of Spokane Valley brand through the creation of a city logo and tagline. Display the logo on signage at the entrance(s) to the city, at parks, on pole banners and on city assets such as vehicles and buildings. Use the logo on printed materials and provide local businesses with decals to display at their entrances. 3. Visit Spokane Content Identify and develop content that Visit Spokane can easily integrate into their existing promotional channels to drive traffic to the City of Spokane Valley. 4. Event Creation: Pursue partnerships to develop 2-3 annual events to appeal to a diverse range of regional visitors_ Initial examples include a Trail Crawl, Craft Week (wine and beer) and River Roundup (active and social events along the banks of the river). 5. Social Media Campaign: Use Facebook, Twitter and Instagram to connect with visitors planning trips to Washington state. Create evergreen content about the City of Spokane Valley that utilizes photography of the community's landscape. Develop additional posts that feature local businesses, recreational amenities and events as appropriate. Follow and share (Facebook), re -tweet (Twitter) and re -gram {Instagram) content that showcases the community's assets. Create a hashtag campaign that visitors can use on Facebook, Twitter and Instagram posts to encourage engagement with the community. Consider integrating the hashtag with the new logo for use on community signage and business decals. Examples of other municipality campaigns include 4goBR, #OmahaWeekend, #TakeOnPokono, #ItsAllGoodEP, #MTLmoments and #onlyinSF. * Attempt to create content that will work for both residents and visitors from the same account as much of the content should work for both audiences. 6. Digital Engagement Provide ongoing education and encourage restaurants, hotels and retail businesses to solicit Yelp and Google reviews of their businesses and services. Maintain their digital reputation by respectfully replying to critiques and leverage the feedback to improve services and overall facilities. Create broader City of Spokane Valley tourism content for top -performing planning and booking sites including TripAdvisor and other travel websites about area attractions, shopping, restaurants and recreational destinations. (See Appendix for more information.) To help drive awareness of outdoor recreation opportunities —including river access points—create additional, map - driven assets such as an interactive map. Also, perform an audit of the existing City of Spokane Valley app to offer content and functionality enhancements, or consider replacing with a more intuitive application. NEAR TERM (2-5 YEARS) 1. Product Development: Identify and develop local and visitor engagement opportunities such as new events in the community. Suggestions include a farmers' market and arts market, as well as festivals. Consider coordinating with programs and contests related to community pride initiatives. 2.9-lospital ity Training: Partner with local businesses to create a module to be included in the training programs for hotel and hospitality workers. The module should provide an overview of the City of Spokane Valley and things to do in the area. Consider providing front desk and wait staff with coupons to local establishments for them to experience what the area has to offer in order to provide accurate recommendations to visitors. 3. Retail Outreach: Develop special offers with local hotels, restaurants and amenities to encourage regional shoppers to extend their trip and experience some of the other area attractions. Provide bag inserts with these offers and higher-level offers for people purchasing vehicles. 4. Business Traveler Attraction: Identify top -attended conferences at the Spokane Convention Center and promote City of Spokane Valley hotels as affordable, nearby alternatives. Purchase key words to capture the attention of event planners looking for meeting space near Spokane to promote the CenterPlace. 5. Earned Media: Conduct a campaign to place stories about the City of Spokane Valley in community newspapers as well as local and regional lifestyle and travel publications such as Northwest Traver Magazine and Sip Northwest (wine magazine). Develop weekend itineraries for visitors to the area including outdoor recreation, shopping and dining attractions. 6. Merchandise Creation: Support efforts by local businesses to create merchandise that promotes the City of Spokane Valley. Utilize the logo or brand elements whenever possible. Examples include t -shirrs and hats featuring custom artwork, t -shirts and posters for events, reusable shopping bags for groceries and the farmers' market, etc. 7. Hospitality Roundtable: Create a roundtable group of hospitality business leaders in the restaurant, retail and lodging sectors. Use this group as a sounding board for tourist attraction efforts as well as a catalyst to generate business -led initiatives. Encourage the roundtable to develop programs that cross -promote within the tourism sector such as a tourist coupon book or collaborative social media effort. ATLAS ADVERTISING PAGE 26 IEZ NOMIC DEVELOPMENT SHORTTERM (0-2 YEAS) 1. Brand Development: Develop a new city brand through the creation of a city logo and tagline. Display the logo on signage at the entrance(s) to the city, at parks, on pole banners and on city assets such as vehicles and buildings. Use the logo on printed materials and provide local businesses with decals to display at their entrances. 2. Website Development: Develop a standalone, SEO-optimized, mobile responsive website designed for site consultants and c -level executives considering investment in the City of Spokane Valley. Content should include information about the City of Spokane Valley's business friendly climate, sites, transportation infrastructure, incentives, advantages for target industries, workforce, utilities, taxes, quality of life, etc. 3. Materials Development Develop high quality RFP -response materials that fit the new brand and positioning.These materials will articulate the City of Spokane Valley's strategic advantages on taxes, business climate, utilities, transportation infrastructure, sites, quality of life, workforce availability, etc. 4. Greater Spokane Inc. Content: Identify and develop content that Greater Spokane Inc. can easily integrate into their existing promotional channels to catalyze interest in the City of Spokane Valley. 5. Awards and Accolades: Determine selection criteria for community rankings such as Forbes Magazine's "America's Ten Fastest Growing Cities" and implement a plan to compete. Work with Spokane Valley businesses to secure recognition in Greater Spokane Incorporated's AGORA Awards. 6. Digital Content Management Consolidate and track all digital marketing efforts including email campaigns, site visits, and social media activities leveraging a single tool such as Hubspot. 7. Business Champions: Identify c -level executives whose businesses are located in the City of Spokane Valley. Educate these business leaders about the City of Spokane Valley's positioning and messaging so that they can become advocates for the community's business climate. Develop testimonials that can be used in marketing efforts such as the website, targeted emails, advertisements, billboards, local signage, videos, pitch presentations, etc. Each testimonial should go beyond permitting to speak to one or more of the City of Spokane Valley's strategic advantages for business. Ensure that these videos reflect the look and feel of the community's updated brand. 8. Social Media Campaign: Use Twitter and Linkedln to communicate success stories of businesses located in the City of Spokane Valley as well as the community's strategic location for business location and investment. Follow local companies and businesses as well as site consultants and c -level executives within the region. Build a social media content calendar consisting of evergreen posts about strategic advantages that can be used throughout the year. Content might include information about incentives, transportation infrastructure, tax climate, quality of life, testimonials, etc. Analyze engagement to determine most successful content and adjust accordingly. * Note that content developed for your economic development target is different that content for residents and tourists.Tweets and Linkedln posts should be targeted for businesses—particularly those outside the region. Provide links/buttons from the website for direct access to social media accounts. Closely monitor site activity and gather highly detailed profiles of specific companies visiting the site leveraging LeadlQ, a proprietary tracking tool from Community Systems. PAGE 27 NEAR TERM (2-5 YEARS) 1. Online Advertising: Implement a paid media campaign consisting of Google Adwords and digital advertising to drive traffic the City of Spokane Valley's economic development website. Analyze campaign effectiveness and adjust based on performance. 2. Site Consultant Outreach: Attend a consultant conference to develop relationships. Our recommendation is the annual Industrial Asset Management Council (IAMC). Consider sponsoring the event as the Spokane Business and Industrial Park to raise awareness of this asset. Develop a series of email communications and distribute to a targeted list of site consultants.The series should feature the City of Spokane Valley's strategic advantages including taxes, permitting, business climate, utilities, transportation infrastructure, sites, quality of live, workforce availability, etc. Distribute the branded, html emails weekly over a 6-8 week period.The emails should drive users to engage in the appropriate sections of the new website. Utilize business champion testimonials as appropriate to each topic. 3. Workforce Development Encourage partnerships between local businesses and education institutions to develop training programs to educate or re-train workers in preparation for the recruitment of advanced manufacturing companies. 4. Business Retention and Expansion: Develop a semi-annual business retention program to reach out to economic driver companies as well as small businesses located in the City of Spokane Valley. Solicit and log feedback about the community's business friendliness and suggestions for improvement. Uncover potential expansion opportunities for companies located in the area as well as supply chain companies to target for investment. Consider creating a small business roundtable to identify ways that the City of Spokane Valley can cultivate the creation and development of small businesses in the community. S. Supply Chain Company Cultivation: Conduct interviews with manufacturers located throughout the Spokane MSA and in Western Idaho to identify companies that provide inputs to their materials and machinery. Request c -level endorsements and support to recruit those companies to locate in the City of Spokane Valley. Develop targeted messaging and materials unique to each company and supply chain to articulate the city's advantages. Based on information gathered from stakeholder interviews, develop action items to improve the City of Spokane Valley's business climate and product. 6. Values -Based Business Cultivation: Identify companies that have strong conservative corporate values and develop outreach materials that speak directly to the City of Spokane Valley's values system. Consider deploying targeted email and display ads to raise awareness about the City of Spokane Valley among this target. 7. Business Location: Attend a manufacturing conference such as IAMC to cultivate new relationships with businesses and raise awareness about the City of Spokane Valley and its strategic advantages. PAGE 28 KEY PERFORMANCE J CATO S As we implement our strategy and plan, we will use key performance indicators to determine if we are on track to meet our objectives. COMMUNITY ENGAGEMENT Increase resident engagement Increase social media engagement across channels TOURIST ATTRACTION Increase Revenue Per Available Room (REVpar) Increase social media engagement across channels ECONOMIC DEVELOPMENT Increase in median household income Increase number of business licenses Improve site selector perceptions Increase website visits Increase time spent on website Increase in requests for proposals PAGE 29 APPENDIX Content and reviews on popular travel sites are an important component of a successful visitor -attraction effort. See below for current status on top -performing planning and booking sites (as of September 15, 2016). Travelocity Trivago • 13 hotels are displayed • 9 hotels are displayed, but the closest listing is 0.7 miles away • Top ranked hotel with 3/5 stars is the Oxford Suites based on 816 reviews • Lake Rooseveltfly-boarding, boating and jet skiing are the only items listed for Things to Do Google • Top ranked is the Comfort Inn and Suites with 4/5 stars based on 1,528 reviews TripAdvisor Searching "Things to do in Spokane Valley Washington" top three results are: • 13 hotels are displayed, but 2 are in Spokane Valley East LaQuinta Inn is top rated with 4.5/5 stars based on 457 reviews, and is also advertising to be a featured property 9 activities are featured as Things to Do, the top three being Maribeau Meadows Park, 14 bars and clubs, and Spokane Valley Heritage Museum • Splash Down • Discovery Playground • Senior Valley Senior Center ADVERTISING www.Atlas-Advertising.com CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 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: 2017 Parks Maintenance Contract Update. GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Approval of park maintenance contracts beginning in 2005 through the current contract. BACKGROUND: The City began contracting for park maintenance services in 2005. This first contract was for one year with up to four one-year renewal options expiring December 31, 2009, depending on whether the City was satisfied with the service. The second contract was publically bid in 2009 for the 2010 calendar year and it was for a one year contract with up to six one-year renewal options expiring December 31, 2016. The park maintenance contract currently in force is with Senske Lawn and Tree Care. Plans and specifications were recently prepared for the 2017 Park Maintenance Contract with review assistance from the Office of the City Attorney. These contract provisions were revised and updated to reflect any additional responsibilities and facilities. Staffs focus was to ensure that the current level of maintenance would continue in future years. The public continues to express their appreciation for the quality of maintenance that our parks and facilities receive. The "bid package" for the park maintenance contract was put out to bid on September 30 and advertised through the Spokane Valley News Herald. The bids were due back to the City on October 21. One bid was received, from Senske Lawn and Tree Care. Since only one bid was received and it was from Senske Lawn and Tree Care, which has a proven track record of excellent service with the City of Spokane Valley, staff recommends awarding the 2017 Parks Maintenance contract to Senske Lawn and Tree Care. The 2017 contract is for one year, with up to two additional three-year renewal options. The total cost for the 2017 Park Maintenance contract is $758,310.01, which includes the maintenance of the Valley Mission Dog Park and two new sections of the Appleway Trail (Pines to Evergreen and Sullivan to Corbin) as they come online, and which represents a 2.3% increase over the 2016 contract.. OPTIONS: Council consensus to place the proposed contract for motion consideration on a future agenda, with or without further changes to the proposed contract. RECOMMENDED ACTION OR MOTION: Seek Council consensus to place contract on November 22 Council Agenda for motion consideration. BUDGET/FINANCIAL IMPACTS: The 2017 park Maintenance contract is funded within the 2017 Park and Recreation Department budget. STAFF CONTACT: Michael D. Stone, CPRP. Director of Parks and Recreation. ATTACHMENTS: Draft contract. DRAFT PARK MAINTENANCE AGREEMENT Senske Lawn and Tree Care Inc. THIS AGREEMENT (the "Agreement") is made by and between the City of Spokane Valley, a code City of the State of Washington ("City") and Senske Lawn and Tree Care Inc., ("Contractor") jointly referred to as the "Parties". IN CONSIDERATION of the terms and conditions contained herein the Parties agree as follows: 1. Work to Be Performed. Contractor shall do all work and furnish all labor, supervision, tools, materials, supplies and equipment and other items necessary for the Park Maintenance (hereinafter "work") in accordance with documents described in Exhibit A Bid Package which includes the (Scope of Work, General Instructions, Instructions to Bidders, Bid Response Documents, Specifications and Appendix A & B), which are by this reference incorporated herein and made part hereof (the "Contract Documents"), and shall perform any changes in the work in accordance with the Contract Documents. The terms and provisions in this Agreement shall control over any inconsistent or incompatible terms in any other Contract Document. Contractor shall, for the amount set forth in the Contractor' s bid proposal attached hereto, assume and be responsible for the cost and expense of all work required for constructing and completing the Work and related activities to City' s satisfaction, provided for in the Contract Documents, except those items mentioned therein to be furnished by the City of Spokane Valley. The City Manager, or designee, shall administer and be the primary contact for Contractor. Upon notice from City, Contractor shall promptly commence work, complete the same in a timely manner, and cure any failure in performance under this Agreement. Unless otherwise directed by City, all work shall be performed in conformance with the Contract Documents, and all City, State and federal standards, codes, ordinances, regulations and laws as now existing or as may be adopted or amended. Contractor acknowledges review of the Contract Documents and accepts the same. 2. Term of Contract. This agreement shall be in full force and effect beginning January 1, 2017, and shall remain in effect for one year, with up to two additional three-year renewal options which may be exercised by the Parks and Recreation Director until completion of all contractual requirements. Renewals, if any, shall coincide with the calendar year. Either Party may terminate this Agreement with a minimum of 90 days' written notice at any time during a contract term. In the event of such termination, the City shall pay the Contractor for all work previously authorized and satisfactorily performed prior to the termination date. 3. Liquidated Damages. Not applicable for this Agreement. 4. Compensation. The City shall pay the Contractor $758,310.01 inclusive of sales tax, at the then current rate, as full compensation for everything done or provided under this Agreement. 5. Payment. Contractor shall be paid monthly in an amount that represents one -twelfth (1/12th) of the yearly Agreement amount. Payments shall be sent to the City no later than the 5th day of each month. The City reserves the right to withhold payment under this Agreement for that portion of the work or materials which are determined in the reasonable judgment of the Parks and Recreation Director or designee to be noncompliant with the Contract Plans, Contract Documents, or City or State standards or codes. In such an event, the Parks Maintenance Agreement 2017-2019 Page 1 of 7 DRAFT undisputed amount owed by the City shall be timely paid. Any dispute over withheld payment shall be resolved in a timely manner. Pursuant to chapter 60.28 RCW, five percent of the compensation due Contractor shall be retained by City. City reserves the right to withhold payment under this Agreement for that portion of the work (if any) which is determined in the reasonable judgment of the City Manager or designee to be noncompliant with the Contract Documents, City standards, City Code, and federal or state standards. 6. Notice. Notice other than applications for payment shall be given in writing as follows: TO THE CITY: Name: Christine Bainbridge, City Clerk Phone: (509) 921-1000 Address: 11707 East Sprague Ave, Suite 106 Spokane Valley, WA 99206 After August 31, 2017, please send notices to: 10210 East Sprague Spokane Valley, WA 99206 TO THE CONTRACTOR: Name: Senske Lawn & Tree Care Inc. Phone: (509) 532-7892 Address: 7115 E. Cataldo Spokane Valley, WA 99212 7. Applicable Laws and Standards. The Parties, in the performance of this Agreement, agree to comply with all applicable federal, state, and local laws, codes and regulations. 8. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions. A. By executing this Agreement, the Consultant certifies to the best of its knowledge and belief, that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission or fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statues or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (A)(2) of this certification; and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions (federal, state, or local) terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this Agreement. 9. Prevailing Wages on Public Works. Contractor, any subcontractor, or other person doing work under this Agreement, shall comply with the requirements of chapter 39.12 RCW, and shall pay each employee an Parks Maintenance Agreement 2017-2019 Page 2 of 7 DRAFT amount not less than the Prevailing Rate of Wage, as specified by the Industrial Statistician of the Washington State Depaitinent of Labor and Industries ("L&I"). If employing labor in a class not shown, Contractor shall request a determination of the correct wage rate for the class and locality from the Industrial Statistician. Contractor shall provide a copy of any such determinations to City. Before commencing, during, and upon completion of the work, Contractor shall file all forms and pay all fees required by L&I and shall indemnify and hold City harmless from any claims related to its failure to comply with chapter 39.12 RCW. The following information is provided pursuant to RCW 39.12.030: A. State of Washington prevailing wage rates applicable to this public works project, published by L&I are located at the L&I website address: https://fortress.wa.gov/lni/wagelookup/prvWagelookup.aspx B. This Project is located in Spokane County. C. The effective prevailing wage date is the same date as the bid due date as referenced in the original request for bids and as may be revised by addenda. A copy of the applicable prevailing wage rates is also available for viewing at the offices of City located at 11707 East Sprague, Suite 106, Spokane Valley, WA 99206. Upon request, City will mail a hard copy of the applicable prevailing wages for this project. 10. Relationship of the Parties. It is understood, agreed and declared that Contractor shall be an independent contractor, and not the agent or employee of City, that City is interested in only the results to be achieved, and that the right to control the particular manner, method and means in which the services are performed is solely within the discretion of Contractor. Any and all employees who provide services to City under this Agreement shall be deemed employees solely of Contractor. Contractor shall be solely responsible for the conduct and actions of all its employees under this Agreement and any liability that may attach thereto. 11. Ownership of Documents. All drawings, plans, specifications, and other related documents prepared by Contractor under this Agreement are and shall be the property of City, and may be subject to disclosure pursuant to chapter 42.56 RCW, or other applicable public record laws. 12. Records. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of Contractor's records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit, examine and make excerpts or transcripts from such records and to make audits of all contracts, invoices, materials, payrolls and record of matters covered by this contract for a period of three years from the date final payment is made hereunder. 13. Warranty. Unless provided otherwise in the Contract Documents, Contractor warrants that all Work and materials performed or installed under this Agreement are free from defect or failure for a period of one year following final acceptance by City, unless a supplier or manufacturer has a warranty for a greater period, which warranty shall be assigned or transferred to City. In the event a defect or failure occurs in work or materials, Contractor shall, within the warranty period, remedy the same at no cost or expense to City. This warranty provision shall not be construed to establish a period of limitation with respect to Contractor's other obligations under this Agreement. Parks Maintenance Agreement 2017-2019 Page 3 of 7 DRAFT 14. Contractor to Be Licensed And Bonded. Contractor shall be duly licensed, registered and bonded by the State of Washington at all times this Agreement is in effect. 15. Contractor to provide performance and payment bonds. Contractor shall provide apaymentbond and a performance bond in the full amount of the contract on the City's bond forms. Alternatively, Contractor may elect to have the City retain 50% of the contract amount in lieu of providing the City with a payment bond and a performance bond, pursuant to RCW 39.08.010(3). 16. Insurance. Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, or employees. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types described below: 1. Automobile liability insurance covering all owned, non -owned, hired, and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial general liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products - completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The commercial general liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85. There shall be no endorsement or modification of the commercial general liability insurance for liability arising from explosion, collapse or underground property damage. City shall be named as an insured under Contractor's commercial general liability insurance policy with respect to the work performed for City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Workers' compensation coverage as required by the industrial insurance laws of the State of Washington. B. Minimum Amounts of Insurance. Contractor shall maintain the following insurance limits: 1. Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of no less than $1,000,000 per accident. 2. Commercial general liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate, and no less than a $2,000,000 products - completed operations aggregate limit. C. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions for automobile liability, professional liability and commercial general liability insurance: 1. Contractor's insurance coverage shall be primary insurance with respect to City. Any insurance, self-insurance, or insurance pool coverage maintained by City shall be excess of Contractor's insurance and shall not contribute with it. Parks Maintenance Agreement 2017-2019 Page 4 of 7 DRAFT 2. Contractor shall fax or send electronically in .pdf format a copy of insurer's cancellation notice within two business days of receipt by Contractor. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Evidence of Coverage. As evidence of the insurance coverages required by this Agreement, Contractor shall furnish acceptable insurance certificates to City at the time Contractor returns the signed Agreement, which shall be Exhibit B. The certificate shall specify all of the parties who are additional insureds, and shall include applicable policy endorsements, and the deduction or retention level. Insuring companies or entities are subject to City acceptance. If requested, complete copies of insurance policies shall be provided to City. Contractor shall be fmancially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. Criminal Background Checks. Contractor agrees that it shall not ask or direct any person to go to any City park property in the performance of this Agreement, whether the person is an employee or volunteer, unless that person has passed a criminal background check by an agreed upon entity that performs criminal background checks as a part of its regular services. Bonding Requirements. Contractor shall provide Performance and Payment Bond in the amount of 100% of annual contract amount which shall be provided to the City as Exhibit C to this Agreement 17. Indemnification and Hold Harmless. Contractor shall, at its sole expense, defend, indemnify and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, attorney's fees and costs of litigation, expenses, injuries, and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts, errors or omissions in the services provided by Contractor, Contractor's agents, subcontractors, subconsultants and employees to the fullest extent permitted by law, subject only to the limitations provided below. Contractor's duty to defend, indemnify and hold harmless City shall not apply to liability for damages arising out of such services caused by or resulting from the sole negligence of City or City's agents or employees. Contractor's duty to defend, indemnify and hold harmless City against liability for damages arising out of such services caused by the concurrent negligence of (a) City or City's agents or employees, and (b) Contractor, Contractor's agents, subcontractors, subconsultants and employees, shall apply only to the extent of the negligence of Contractor, Contractor's agents, subcontractors, subconsultants and employees. Contractor's duty to defend, indemnify and hold City harmless shall include, as to all claims, demands, losses and liability to which it applies, City's personnel -related costs, reasonable attorneys' fees, and the reasonable value of any services rendered by the office of the City Attorney, outside consultant costs, court costs, fees for collection, and all other claim -related expenses. Contractor specifically and expressly waives any immunity that may be granted it under the Washington State Industrial Insurance Act, Title 51 RCW. These indemnification obligations shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable to or for any third party under workers' compensation acts, disability benefit acts, or other employee benefits acts. Provided, that Contractor's waiver of immunity by the provisions of this paragraph extends only to claims against Contractor by City, and does not include, or extend to, any claims by Contractor's employees directly against Contractor. Parks Maintenance Agreement 2017-2019 Page 5 of 7 DRAFT Contractor hereby certifies that this indemnification provision was mutually negotiated. 18. Waiver. No officer, employee, agent or other individual acting on behalf of either party has the power, right or authority to waive any of the conditions or provisions of this Agreement. No waiver in one instance shall be held to be waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law, shall be taken and construed as cumulative, and in addition to every other remedy provided herein or by law. Failure of either party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof. 19. Assignment and Delegation. Neither party shall assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without first obtaining the written consent of the other party. 20. Confidentiality. Contractor may, from time to time, receive information which is deemed by City to be confidential. Contractor shall not disclose such information without the prior express written consent of City or upon order of a Court of competent jurisdiction. 21. Disputes. All disputes arising under or related to this Agreement that cannot be resolved through informal discussion and negotiations shall be resolved by litigation filed in the Superior Court for Spokane County, unless otherwise required by applicable federal or state law. 22. Subcontractor Responsibility. As required by RCW 39.06.020, Contractor shall verify responsibility criteria for each first tier subcontractor and its subcontractors of any tier that hires other subcontractors shall verify responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor, at the time of subcontract execution, meets the responsibility criteria listed in RCW 39.04.350(1) and possesses an electrical contractor license, if required by chapter 19.28 RCW, or an elevator contractor license if required by chapter 70.87 RCW. This verification requirement must be included in every subcontract of every tier. 23. Jurisdiction and Venue. This Agreement is entered into in Spokane County, Washington. Venue shall be in Spokane County, State of Washington. 24. Entire Agreement. This Agreement constitutes the entire and complete agreement between the parties and supercedes any prior oral or written agreements. This Agreement may not be changed, modified or altered except in writing signed by the Parties. 25. Anti -kickback. No officer or employee of City, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted or granted a present or future gift, favor, service or other thing of value from any person with an interest in this Agreement. 26. Business Registration. Prior to commencement of Work under this Agreement, Contractor shall register with the City as a business. 27. Severabilitv. If any section, sentence, clause or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction, such invalidity shall not affect the validity of any other section, sentence, clause or phrase of this Agreement. Parks Maintenance Agreement 2017-2019 Page 6 of 7 DRAFT 28. Exhibits. Exhibits attached and incorporated into this Agreement are: A. Complete Bid Package B. Insurance Endorsements C. Performance and Payment Bonds The Parties have executed this Agreement this day of November, 2016. CITY OF SPOKANE VALLEY: Contractor: Mark Calhoun, City Manager Owner ATTEST: Christine Bainbridge, City Clerk APPROVED AS TO FORM: Office of the City Attorney Parks Maintenance Agreement 2017-2019 Page 7 of 7 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 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: 2017 CenterPlace Food Services Contract Update GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Approval of original 2009 contract. BACKGROUND: CenterPlace began utilizing an in-house caterer for food and beverage services in 2009. Since then, with each passing year the number of food events has increased to over 450 in 2015. This has proven to be a very beneficial service to our customers and one that continues to receive very positive feedback. The current CenterPlace food and beverage contract with Le Catering expires on December 31, 2016. Therefore, the Parks and Recreation Department began the process to develop a Request for Proposals (RFP) seeking responses to provide food and beverage services at CenterPlace beginning in January 2017. The RFP was advertised in the Spokane Valley News Herald beginning September 16, 2016. Proposals were due on October 7, 2016. Three proposals were received. The City decided to interview and taste test all three proposers. A taste testing exercise and interviews were conducted on November 1, 2016 at CenterPlace by a five person interview panel. The three caterers that participated in this process were Mangia, Le Catering and the Mirabeau Park Hotel. Each caterer provided a taste testing for a breakfast, lunch and dinner that were provided at specific prices. After the taste testing, each caterer was interviewed by the interview panel for approximately one hour each. After the interviews, the panel discussed the interviews, shared their impressions and provided feedback to the Parks Director. The panel felt that one caterer performed significantly better than the other two in both the taste test and the interview. It was a unanimous decision by the interview panel to recommend Le Catering for the 2017 contract. OPTIONS: Council consensus to place the proposed contract for motion consideration on a future agenda, with or without further changes to the proposed contract. RECOMMENDED ACTION OR MOTION: Seek Council consensus to place contract on November 22 Council Agenda for motion consideration. BUDGET/FINANCIAL IMPACTS: None. The contract will provide additional revenue to the City. STAFF CONTACT: Michael D. Stone, CPRP. Director of Parks and Recreation ATTACHMENTS: Draft contract DRAFT AGREEMENT FOR CENTERPLACE FOOD SERVICES Eat Good LLC, DBA Le Catering Co. THIS AGREEMENT is made by and between the City of Spokane Valley, a code City of the State of Washington, hereinafter "City" and Eat Good LLC, DBA Le Catering Co., hereinafter "Contractor," sometimes jointly referred to as "Parties." IN CONSIDERATION of the terms and conditions contained herein the Parties agree as follows: 1. Grant of Caterin2/Concessions Privilege. The City grants Contractor exclusive authority for the sale of food and beverages, including alcoholic beverages, and provision of food and beverage services associated with such sales (collectively "food services") within CenterPlace as set forth in the Scope of Services, attached as Exhibit 1 and incorporated herein by reference, and more specifically as set forth immediately below. A. Events Booked after the Termination Date of this Agreement. Contractor agrees it shall not collect any fee or deposit from any third party for any event at CenterPlace that is booked for a date after the termination date of this Agreement, unless authorized in writing by the Parks and Recreation Director (the "Director"). B. Special Events. The City reserves the right to permit an event to sell and/or give away food and beverages or allow a home-made potluck in connection with a Special Event for up to six Special Events in CenterPlace during each calendar year, subject to the discretion of the Director. C. Administration. The Director or designee shall administer and be the primary contact for Contractor. D. Representations. The City has relied upon the qualifications of the Contractor in entering into this Agreement. By execution of this Agreement, Contractor represents it possesses the ability, skill, and resources necessary to perform the work and is familiar with all current laws, rules, and regulations which reasonably relate to the services contracted for. No substitutions of agreed- upon personnel shall be made without the written consent of the City. Contractor shall be responsible for the technical accuracy of its services and documents resulting therefrom, and City shall not be responsible for discovering deficiencies therein. Contractor shall correct such deficiencies without additional compensation except to the extent such action is directly attributable to deficiencies in City furnished information. E. Modifications. The City may modify this Agreement whenever necessary or advisable. The Contractor shall accept modifications when ordered in writing by the Director or designee. Compensation for such modifications or changes shall be as mutually agreed between the Parties. 2. Term of Contract. This Agreement shall be in full force and effect beginning January 1, 2017 and shall remain in effect until December 31, 2017. There are up to five additional one-year renewal options, which may be exercised at the sole discretion of the City by the Director of Parks and Recreation. The City shall notify the Contractor by November 1 of each year whether the renewal option will be exercised. Either Party may terminate this Agreement by at least 30 days' written notice to the other Party. In the event of such termination, the City shall pay the Contractor for all work previously authorized and 1 DRAFT satisfactorily performed prior to the termination date. Contractor shall fulfill all contracts with third parties booked at CenterPlace prior to termination as called for in this paragraph. 3. Event Pricing/Compensation. A. Event Pricing. Event pricing by the Contractor shall be as set forth in the Event Pricing, which is attached as Exhibit 2 and incorporated herein by reference. B. Compensation. Payment by the Contractor shall be as set forth in the Compensation Terms, which is attached as Exhibit 3 and incorporated herein by reference. 4. Facilities Access and Use. Access to and use of the facilities shall be as set forth in Exhibit 4, which is attached and incorporated herein by reference. 5. Payment. The City shall be paid as set forth in Exhibit 3. 6. Notice. Notice shall be given in writing as follows: TO THE CITY: TO THE CONTRACTOR: Name: Christine Bainbridge, City Clerk Phone Number: (509) 921-1000 Address: 11707 East Sprague Ave, Suite 106 Spokane Valley, WA 99206 After August 31, 2017, please send notices to: 10210 East Sprague Spokane Valley, WA 99206 Name: Eat Good LLC, DBA Le Catering Phone Number: (509) 210-0800 Address: 24001 E. Mission Ave, Ste 190 Liberty Lake, WA 99019 7. Applicable Laws and Standards. The Parties, in the performance of this Agreement, agree to comply with all applicable federal, state, and local laws and regulations. Contractor warrants that its designs, documents, and services shall conform to all federal, state, and local statutes and regulations. 8. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions. A. By executing this Agreement, the Contractor certifies to the best of its knowledge and belief, that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statues or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 2 DRAFT 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (A)(2) of this certification; and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions (federal, state, or local) terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this Agreement. 9. Relationship of the Parties. It is understood, agreed, and declared that the Contractor shall be an independent Contractor and not the agent or employee of the City; that the City is interested in only the results to be achieved; and that the right to control the particular manner, method, and means in which the services are performed is solely within the discretion of the Contractor. Any and all employees who provide services to the City under this Agreement shall be deemed employees solely of the Contractor. The Contractor shall be solely responsible for the conduct and actions of all its employees under this Agreement and any liability that may attach thereto. 10. Ownership of Documents. All drawings, plans, specifications, and other related documents prepared by Contractor under this Agreement are and shall be the property of City, and may be subject to disclosure pursuant to RCW 42.56 or other applicable public record laws. The written, graphic, mapped, photographic, or visual documents prepared by Contractor under this Agreement shall, unless otherwise provided, be deemed the property of City. City shall be permitted to retain these documents, including reproducible camera-ready originals of reports, reproduction quality mylars of maps, and copies in the form of computer files, for the City's use. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, in whole or in part, any reports, data, drawings, images, or other material prepared under this Agreement, provided that Contractor shall have no liability for the use of Contractor's work product outside of the scope of its intended purpose. 11. Records. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of the Contractor's records with respect to all matters covered in this contract. Such representatives shall be permitted to audit, examine, and make excerpts or transcripts from such records and to make audits of all contracts, invoices, materials, payrolls, and record of matters covered by this contract for a period of three years from the date final payment is made hereunder. 12. Compliance with Leasehold Excise Tax The Contractor hereby acknowledges that it is responsible for paying the "Leasehold Excise Tax," pursuant to chapter 82.29A RCW, as now or hereinafter amended, which is applicable to this Agreement. The Contractor shall be solely responsible for paying such tax to the City, and shall also be responsible for representing itself in any challenge to the amount of such tax that the Washington State Department of Revenue determines is due or any penalty associated with the tax. The Contractor agrees to promptly pay when due all taxes, rates, charges and assessments, special or otherwise and public charges of very kind and nature which may be lawfully imposed or assessed in any way on the Contractor with reference to the Premises. 13. Contractor to provide performance bond. Contractor shall provide a performance bond in the amount of $50,000 on the City's bond forms. 3 DRAFT 14. Insurance. Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees, or subcontractors. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types described below: 1. Automobile liability insurance covering all owned, non -owned, hired, and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial general liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, and personal injury and advertising injury. City shall be named as an insured under Contractor's commercial general liability insurance policy with respect to the work performed for the City. 3. Workers' compensation coverage as required by the industrial insurance laws of the State of Washington. B. Minimum Amounts of Insurance. Contractor shall maintain the following insurance limits: 1. Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial general liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 3. Liquor liability insurance in the amount of $1,000,000 each occurrence. The City is to be named as an additional insured on the liquor liability insurance. With prior written approval of the City, Host liquor liability coverage may be substituted when alcohol is consumed and not sold on premises. C. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions for automobile liability, professional liability, and commercial general liability insurance: 1. Contractor's insurance coverage shall be primary insurance with respect to City. Any insurance, self-insurance, or insurance pool coverage maintained by City shall be in excess of Contractor's insurance and shall not contribute with it. 2. Contractor shall fax or send electronically in .pdf format a copy of insurer's cancellation notice within two business days of receipt by Contractor. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Evidence of Coverage. As evidence of the insurance coverages required by this Agreement, Contractor shall furnish acceptable insurance certificates to the City Clerk at the time Contractor returns the signed Agreement. The certificate shall specify all of the parties who are additional 4 DRAFT insureds, and will include applicable policy endorsements, and the deduction or retention level. Insuring companies or entities are subject to City acceptance. If requested, complete copies of insurance policies shall be provided to City. Contractor shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. 15. Indemnification and Hold Harmless. Contractor shall, at its sole expense, defend, indemnify, and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, attorney's fees and costs of litigation, expenses, injuries, and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts, errors, or omissions in the services provided by Contractor, Contractor's agents, subcontractors, subconsultants, and employees to the fullest extent permitted by law, subject only to the limitations provided below. Contractor's duty to defend, indemnify, and hold harmless City shall not apply to liability for damages arising out of such services caused by or resulting from the sole negligence of City or City's agents or employees. Contractor's duty to defend, indemnify, and hold harmless City against liability for damages arising out of such services caused by the concurrent negligence of (a) City or City's agents or employees, and (b) Contractor, Contractor's agents, subcontractors, subconsultants, and employees, shall apply only to the extent of the negligence of Contractor, Contractor's agents, subcontractors, subconsultants, and employees. Contractor's duty to defend, indemnify, and hold harmless City shall include, as to all claims, demands, losses, and liability to which it applies, City's personnel -related costs, reasonable attorneys' fees, and the reasonable value of any services rendered by the office of the City Attorney, outside consultant costs, court costs, fees for collection, and all other claim -related expenses. Contractor specifically and expressly waives any immunity that may be granted it under the Washington State Industrial Insurance Act, Title 51 RCW. These indemnification obligations shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable to or for any third party under workers' compensation acts, disability benefit acts, or other employee benefits acts. Provided, that Contractor's waiver of immunity under this provision extends only to claims against Contractor by City, and does not include, or extend to, any claims by Contractor's employees directly against Contractor. Contractor hereby certifies that this indemnification provision was mutually negotiated. 16. Waiver. No officer, employee, agent, or other individual acting on behalf of either Party has the power, right, or authority to waive any of the conditions or provisions of this Agreement. No waiver in one instance shall be held to be waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law, shall be taken and construed as cumulative, and in addition to every other remedy provided herein or by law. Failure of either Party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other Party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof. 17. Assignment and Delegation. Neither Party shall assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without first obtaining the written consent of the other Party. 5 DRAFT 18. Subcontracts. Except as otherwise provided herein, the Contractor shall not enter into subcontracts for any of the work contemplated under this Agreement without obtaining prior written approval of the City. 19. Confidentiality. Contractor may, from time to time, receive information which is deemed by the City to be confidential. Contractor shall not disclose such information without the express written consent of the City or upon order of a Court of competent jurisdiction. 20. Jurisdiction and Venue. This Agreement is entered into in Spokane County, Washington. Disputes between City and Contractor shall be resolved in the Superior Court of the State of Washington in Spokane County. Notwithstanding the foregoing, Contractor agrees that it may, at City's request, be joined as a party in any arbitration proceeding between City and any third party that includes a claim or claims that arise out of, or that are related to Contractor's services under this Agreement. Contractor further agrees that the Arbitrator's decision therein shall be final and binding on Contractor and that judgment may be entered upon it in any court having jurisdiction thereof. 21. Cost and Attorney's Fees. The prevailing party in any litigation or arbitration arising out of this Agreement shall be entitled to its attorney's fees and costs of such litigation (including expert witness fees). 22. Entire Agreement. This written Agreement constitutes the entire and complete agreement between the Parties and supersedes any prior oral or written agreements. This Agreement may not be changed, modified, or altered except in writing signed by the Parties hereto. 23. Anti -kickback. No officer or employee of the City, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted, or granted a present or future gift, favor, service, or other thing of value from any person with an interest in this Agreement. 24. Business Registration. Prior to commencement of work under this Agreement, Contractor shall register with the City as a business. 25. Severability. If any section, sentence, clause, or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction, such invalidity shall not affect the validity of any other section, sentence, clause, or phrase of this Agreement. 26. Exhibits. Exhibits attached and incorporated into this Agreement are: 1. Exhibit 1 - Scope of Services; 2. Exhibit 2 - Event Pricing; 3. Exhibit 3 - Compensation Terms; 4. Exhibit 4 - Facilities Access and Use; and 5. Insurance Certificates. 6. Copy of RFP 6 DRAFT The Parties have executed this Agreement this day of November, 2016. CITY OF SPOKANE VALLEY Contractor: Mark Calhoun, City Manager By: Its: Authorized Representative ATTEST: APPROVED AS TO FORM: Christine Bainbridge, City Clerk APPROVED AS TO FORM: Office of the City Attorney CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 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: Lodging Tax Advisory Committee - 2017 Recommended Grant Allocations for Tourism Promotion GOVERNING LEGISLATION: State Law RCW 82.08, and Spokane Valley Municipal Code 3.20 PREVIOUS COUNCIL ACTION TAKEN: Thus far in 2016, the Council has been presented with information pertaining to lodging tax on two previous occasions: • July 5th where we discussed: o Lodging tax in general — what it is and how it may be expended. o The Lodging Tax Advisory Committee (LTAC) — what it is and its role in the process. o The Council's role in the process o Council goals and priorities for the LTAC. • July 26th — where Council discussed and reached consensus on the goals and priorities that should be included in the lodging tax grant application and also communicated to the LTAC. BACKGROUND: In 2003 the City implemented a 2% hotel/motel tax, the proceeds of which are used to promote conventions and tourist travel to our City. The organizations to which the tax proceeds are distributed are ultimately determined by the City Council which receives a recommendation from the Lodging Tax Advisory Committee. The Advisory Committee is comprised of five members who are appointed by the City Council. The Committee membership must include: • At least two representatives of businesses that are required to collect the tax, • At least two people who are involved in activities that are authorized to be funded by the tax, and • One elected city official who serves as chairperson of the Committee. The Advisory Committee makes its recommendations based upon a combination of written application materials and a presentation that is made to them by each applicant. On October 20, 2016, the Lodging Tax Advisory Committee met to consider application materials and presentations from applicants seeking a portion of the $604,000 appropriated in the City's 2017 Budget. Presentations were made by the HUB Sports Center, Valleyfest, Valleyfest Cycle Celebration, Spokane Valley Heritage Museum, Spokane Sports Commission, City of Spokane Valley Parks and Recreation Department, The Family Guide, Spokane County Fair and Expo Center (for the Fair and Winter Glow), and Visit Spokane. Following applicant presentations the Committee discussed both the merits of making particular awards to various applicants and how they felt revenues should be allocated. Part of this discussion included the committee passing a motion that $250,000 be deducted from the available Lodging Tax funds for distribution in 2017 and have those funds moved into the 1.3% Lodging Tax Fund account dedicated for a large sports venue or venues for tourism facilities that generate overnight guests and recommended that this motion be provided for the Council's approval. This left $354,000 of the $604,000 available in the 2017 Budget to be recommended for awards to the applicants. Ultimately, the Committee recommended the following awards be advanced to the City Council for consideration: 1 1) HUB Sports Center 40,000 40,000 2) Valleyfest 150,000 31,600 3) Valleyfest Cycle Celebration 25,000 5,000 4) Spokane Valley Heritage Museum 27,500 9,500 5) Spokane Sports Commission 200,000 115,600 6) City of Spokane Valley Parks & Rec Dept 233,508 0 7) The Family Guide 35,000 0 8) Spokane Co Fair and Expo - Fair 60,000 47,000 9) Spokane Co Fair and Expo - Winter Glow 20,000 2,170 10) Visit Spokane 282,830 103,130 1,073,838 354,000 At times some organizations apply for funding through both the Outside Agency and the Lodging Tax award processes. Valleyfest and the Spokane Valley Heritage Museum both applied for Lodging Tax Funding for 2017, as well as for 2017 Outside Agency funding, and were awarded $22,685 and $3,495, respectively, in Outside Agency funding at the October 25, 2016 Council meeting. In previous years the HUB has at times availed itself of this option. OPTIONS: The City Council may only approve candidates and the recommended amounts from the list provided by the Lodging Tax Advisory Committee. The City Council may choose to make awards to all, some, or none of the recommended candidates in the amounts recommended by the Lodging Tax Advisory Committee, or can send the entire group of recommendations back to the Committee for re -review. RECOMMENDED ACTION OR MOTION: No action is required at this time. This topic will come back before the City Council on December 13, 2016, when a motion consideration will be requested. BUDGET/FINANCIAL IMPACTS: The 2017 Proposed Budget includes total revenues of $580,500 including $580,000 of lodging taxes. Total expenditures are budgeted at $634,000 including $30,000 to offset advertising at CenterPlace and up to $604,000 to be allocated through this award process. The $604,000 includes the $354,000 of recommended awards by the LTAC as well as $250,000 the LTAC recommended for the Council to deduct from the available funds for the award distributions for 2017 and transfer that amount into the 1.3% Lodging Tax Fund account dedicated for a large sports venue or venues for tourism facilities. Total expenditures are expected to exceed total revenues by $53,500 and this will be offset through the use of a portion of the fund balance. The fund balance at the conclusion of 2017 is expected to be $145,501 which should be adequate to cover cash flow needs. STAFF CONTACT: Chelsie Taylor, Finance Director 2 Amount LTAC Applicant Requested Recommend 1) HUB Sports Center 40,000 40,000 2) Valleyfest 150,000 31,600 3) Valleyfest Cycle Celebration 25,000 5,000 4) Spokane Valley Heritage Museum 27,500 9,500 5) Spokane Sports Commission 200,000 115,600 6) City of Spokane Valley Parks & Rec Dept 233,508 0 7) The Family Guide 35,000 0 8) Spokane Co Fair and Expo - Fair 60,000 47,000 9) Spokane Co Fair and Expo - Winter Glow 20,000 2,170 10) Visit Spokane 282,830 103,130 1,073,838 354,000 At times some organizations apply for funding through both the Outside Agency and the Lodging Tax award processes. Valleyfest and the Spokane Valley Heritage Museum both applied for Lodging Tax Funding for 2017, as well as for 2017 Outside Agency funding, and were awarded $22,685 and $3,495, respectively, in Outside Agency funding at the October 25, 2016 Council meeting. In previous years the HUB has at times availed itself of this option. OPTIONS: The City Council may only approve candidates and the recommended amounts from the list provided by the Lodging Tax Advisory Committee. The City Council may choose to make awards to all, some, or none of the recommended candidates in the amounts recommended by the Lodging Tax Advisory Committee, or can send the entire group of recommendations back to the Committee for re -review. RECOMMENDED ACTION OR MOTION: No action is required at this time. This topic will come back before the City Council on December 13, 2016, when a motion consideration will be requested. BUDGET/FINANCIAL IMPACTS: The 2017 Proposed Budget includes total revenues of $580,500 including $580,000 of lodging taxes. Total expenditures are budgeted at $634,000 including $30,000 to offset advertising at CenterPlace and up to $604,000 to be allocated through this award process. The $604,000 includes the $354,000 of recommended awards by the LTAC as well as $250,000 the LTAC recommended for the Council to deduct from the available funds for the award distributions for 2017 and transfer that amount into the 1.3% Lodging Tax Fund account dedicated for a large sports venue or venues for tourism facilities. Total expenditures are expected to exceed total revenues by $53,500 and this will be offset through the use of a portion of the fund balance. The fund balance at the conclusion of 2017 is expected to be $145,501 which should be adequate to cover cash flow needs. STAFF CONTACT: Chelsie Taylor, Finance Director 2 ATTACHMENTS: • Minutes of October 20, 2016, Lodging Tax Advisory Committee meeting. • Chart reflecting a history of hotel/motel tax receipts from January 2007 through September 2016. • Fund #105 — Hotel/Motel Tax — history of revenues and expenditures — 2012 through 2015 Actuals and 2016 and 2017 Budgets. • Lodging Tax Application and Award History for the years 2003 through 2016. • Separately distributed binder titled "Lodging Tax 2017" that was also utilized by the Lodging Tax Advisory Committee at their October 20, 2016 meeting. 3 MINUTES Spokane Valley Lodging Tax Advisory Committee Thursday, October 20, 2016 8:30 a.m. Spokane Valley City Hall, 2nd Floor Conference Room 11707 E. Sprague Avenue, Spokane Valley, Wa. 99206 Attendance: Lodging Tax Advisory Committee Members: Staff Chair: Councilmember Sam Wood Chelsie Taylor, Finance Director Bill Ames, the HUB Sarah Farr, Accounting Technician Lee Cameron, Mirabeau Park Hotel Chris Bainbridge, City Clerk Peggy Doering, Valleyfest Colleen Heinselman, Hampton Inn Suites Councilmember Wood opened the meeting at 8:30 a.m., and after self -introductions by committee members, Finance Director Taylor gave an overview of the materials in the binder, said that each presentation is scheduled for approximately ten minutes, followed by a time for questions and answers; she also went over how the laws have changed over the years, and said that Council can only approve the recommended amounts; they can award all, some or none of those dollar amounts; or they can even send the entire thing back to the Committee for re -review. She mentioned Council goals and priorities for use of the revenues, and the $30,000 set aside for the City of Spokane Valley; said after the allocations, this leaves an ending fund balance of $145,000, which is left for cash flow purposes; and she mentioned the tentative October 19, 2017 calendar meeting for next year. The following entities gave a presentation: 1. The HUB. HUB Executive Director Phil Champlin gave background and history of the HUB; mentioned the several tournaments that have generated hotel stays and he estimated there were over 2,000 room nights generated in 2016; said they want to develop their own tournaments; that last year funds were used mostly for advertising. A question was asked about the campaign to raise funds to purchase the building, and Mr. Champlin said there is an ongoing campaign, and that they have been operating in the black for the last six years. Mr. Cameron said the Lodging Community is pleased with the growth and development and room nights and on the good job Mr. Champlin does on meeting committee objectives. 2. Valleyfest. Board Member Ed Clark said that he is presenting on behalf of over 200 volunteers; said Valleyfest showcases the City of Spokane Valley as well as the sponsors, that it is a fun family event that promotes the City and has a positive impact; said tens of thousands have come to the festival and the prediction is that over 100,000 from all over the northwest will attend the three-day event, eat in restaurants, stay in hotels, and shop; he said many businesses report financial increases during the three-day event; with the beauty of CenterPlace and the park and the River, it spurs revitalization and economic development that markets the community; said next year they plan to go big and hope to hit the $2 million economic impact; said they are requesting $150,000 to market to a wider regional market as well as the Pacific Northwest, including the Portland marketing area; also mentioned they use social media and that their website development continues. Mr. Cameron said he did a call around for the last twelve plus years, said his hotel provided discount packages, and historically only once or twice were a few rooms reported at the Motel 8 and they were vendors at Valleyfest. Ms. Heinselman said her hotel has been open for six and a half years, and they ask every year as they try to get an idea of how many are coming for Valleyfest; and said that no one said they were here for Valleyfest; said a guest might have said they heard about it, but it wasn't the primary reason for being there. Mr. Cameron said they tracked it and had virtually no one ever say they were coming for Valleyfest; said he doesn't see the "qualified overnight guests" and he asked where did the numbers come from for overnight stays. Valleyfest Board Member Stephanie Hughes said that the festival doesn't produce LTAC Meeting Minutes October 20, 2016 Page 1 of 8 hotel stays which is why they are going big and inviting people from other areas, like Seattle, Portland, and Boise; said they want to expand the marketing for 2017. Ms. Heinselman suggested the timing of Valleyfest might be of issue too as it is right after school starts, and she asked if there were any thoughts of moving the date. Ms. Hughes said the Board has looked at that and will do so again. Mr. Ames said he spent about five hours at Valleyfest passing out brochures for HUB events, and he met people from Ritzville and elsewhere, and said the only hotel he is aware of taking overnight guests was Super 8, and said that is a concern. Ms. Hughes again agreed they are not putting the heads in beds and what is why they seek a broader audience. Mr. Cameron said part of the discussion in the past was to market outside the area, said the timing of the festival is also relevant, that it needs to be a top event which takes hundreds of thousands of dollars to develop; said we don't have an event to market like some of the events in downtown Spokane; that this event has grown and is a well done community event, but he said the emphasis is on "community"; also noted that $150,000 is a real concern and that he doesn't see any strategic planning on where the money is going to be spent, but it is just throwing money out the window, and that there wasn't one overnight guest generated in the past; and said to spend $150,000 to get no overnight guests flies in the face of common sense; said others have indicated they want to see Valleyfest self-sufficient through sponsorships and not necessarily tax dollars. Mr. Clark replied that this is why they want to reach out further; said developing a strategic plan at this point would be jumping the gun. Councilmember Wood stated that Council Goal #5 is that events should have the goal of becoming self-sustaining, but there is a statement in there that says they never will be self- sustaining; so the question is how to address that goal without a plan. Ms. Hughes reminded everyone that Valleyfest is volunteers so in order to be self-sustaining, they would have to get thousands from sponsors; said they don't have a plan to be self-sustaining, but without the funding, she doesn't know if they will be able to put on the festival; said they are a nonprofit that doesn't have money to spend. There was some discussion about the idea of asking the City to take on Valleyfest as one of its functions, and Ms. Hughes said other cities do that. Mr. Clark reminded everyone that Valleyfest showcases and promotes Spokane Valley and gives citizens a cultural, fun, learning experience, and is put on by hundreds of volunteers with very little money, which is why they want to make it bigger and have a bigger impact on the community. Councilmember Wood suggested maybe LTAC funds is the wrong place and perhaps the money should come from Council. Ms. Doering said she would agree, but that this is a very long conversation; said there have been hotel stays and they do exit surveys vetted through Eastern Washington University's School of Business, said people have lots of options and can answer a survey any time they want; that some people stay in Post Falls or on the north side, that they don't always stay in Spokane Valley; said the goal is tourism, and it includes festivals. Mr. Cameron voiced his concerns and observations about whether lodging is the mechanism to fund Valleyfest; said we all acknowledge Valleyfest's contribution to the community; but said if he were running it, he would want a part time or full time management person who has had fundraising experience; if you can't sell sponsors and other community entities to support Valleyfest economically, asking lodging to support it even though it can't generate any rooms, that is the problem; he said they promote Valleyfest to all their hotel guests; and he again questioned the event's time of year and said it is throwing money away. 3. Valleyfest, Cycle Celebration. Board Member Hughes explained that the new event brings more people to the community; said the past funding only allowed marketing in the area and they would like to invite other areas like Yakima; said this is not throwing away the money; that it is a summer event; said they received a request to do a 100 -mile run; said people come to the park; that they also had a bike rodeo to bring in more kids this year; said they hope to attract people from Seattle and other areas to come visit and participate in the cycle celebration. Ms. Heinselman asked about the $25,000 for marketing and Ms. Hughes said she learned this is a very targeted group of people, similar to the Seattle Cycle or Portland Cycle club, they plan to identify those key clubs and groups and do more with the bike stores, discover where those stores are in other areas and send them literature for them to share. Mr. Cameron said that many people LTAC Meeting Minutes October 20, 2016 Page 2 of 8 don't look at printed materials so maybe a suggestion would be to also use social media to connect with clubs; said he would have less difficulty in funding it if he could see growth. 4. Heritage Museum. Museum Director Jayne Singleton and Museum Volunteer Nancy Pulham, with the assistance of their PowerPoint presentation, explained that the Museum has been tracking growth via their guest log, to ask visitors as they enter the museum where they heard about the museum and where they are staying. Ms. Singleton explained that social media is very popular so the museum volunteers get into different methods for getting the word out about the museum; she mentioned they also do an annual survey; said they are well aware of the need to demonstrate how the funds are used. Ms. Pulham said she is usually at the museum once or twice a week and she also understands the importance of tracking visitors, and of the good media marketing efforts to attract people to the museum. Ms. Singleton also explained about some of next year's upcoming exhibits. 5. Spokane Sports Commission. Commission President Eric Sawyer explained that the Spokane Sports Commission is a 501(c)3 organization and has been around since the late 1980's; said they use sports as an economic driver for the community, and noted it is a very competitive market; said they researched and identified the events to make a match into their market, and have been very successful; said the trends are showing strong growth in sports as part of tourism; said over half the millennials are travelling for sports - related events; and by hosting events, it gives the community exposure and that influences economic development; said the competition for this is very high, to be to competitive, they need to provide incentives for how the event will work, who will do it, and how to provide an incentive to get that event to come here; said the goal this year is to hit 20,000 hotel room nights, and estimated that about 40-60% will be Valley stays. Mr. Sawyer said that they were just awarded the U.S. National Cross Country Championships and will be showcasing that to the community in the fall of 2018; he said the Commission has the ability to help showcase this community and will make sure the HUB gets it capital campaign done. He also mentioned the development of the Nordic Center in Mt. Spokane, said he feels Mt. Spokane is part of the valley; and they are close to having a feasibility study for a major sports complex next to the HUB. Mr. Cameron said he applauds the Sports Commission, said the return on investment will be critical this year; and said he is 100% behind him in development plans and would like to even expand on those plans; said the Commission spent less than $13.00 a room night which is an excellent return on investment. Mr. Ames added that the Commission has jumped in to help put together a strategic plan for the volleyball tournament in the old colosseum. Councilmember Wood said he would love to see the Valley become a maga-sports center, and personally feels we need a premier sports community, which he said would take a lot of money, but we need that facility which will market and promote the valley. The group took a quick break at 9:50 a.m. and resumed the meeting at 10:00 a.m. 6. Spokane Valley Parks and Recreation Department, Volleyball Courts: Recreation Coordinator Jennifer Papich went over some of the history of Browns park and the volleyball courts; she explained that these four additional courts would make a total of twelve courts, and therefore move the park that much closer to the goal of having sixteen courts. Ms. Papich explained that these courts are more expensive than previous courts due to the location as they are a little more difficult to access, and they impact irrigation a little more. Ms. Lindsay Walter, Officer Manager for Evergreen Regional Volleyball Association also spoke about the sand volleyball program; that with eight courts they struggle to accommodate all the requests for use, and that they try to balance meeting the Association requests as well as time for community members; said they hold a national event as well, and the courts are also needed for practice. Ms. Papich stated that as a parent of a volleyball player, you bring the entire family; said the numbers in the application are just the participants and not the families shopping, eating, and staying in hotels; and that once the facility is complete with all sixteen courts, it will enable us to host more opportunities to bring in more people and produce more overnight stays. Parks and Recreation Director Mike Stone said staff has worked long and hard with the Spokane Valley Council to develop a masterplan for the park, and a key component and vision LTAC Meeting Minutes October 20, 2016 Page 3 of 8 is the sand volleyball complex; said it is the only thing of its kind within 300 miles, and when Council approved this program, they felt it would be something of value; he said most juniors don't drive so they bring in others, all which provides tourism dollars in food, gas, and shopping; said we feel strongly this will be tremendous and he would love to get it fully built, and ask the Sports Commission to assist in this promotion. Mr. Cameron said comments from the lodging partners is to endorse the park and the full courts as they do bring in people, and like the HUB's objective, is for the betterment of the entire community; said since the Council approved the masterplan, there is no guarantee on lodging dollars, and he asked about the timeline. Mr. Stone explained that this is a long-term project, and that the demands on City funds are vast and many, and we want to make sure we invested and have a partnership with the Regional Volleyball Association so the maintenance falls on them; said we promise to go out and search funding and try to develop some sponsorships, but that is just one venue; said he also understands the challenges of the LTAC, but feels this project has as much merit as any of the applications, and said that Browns Park and the sand volleyball courts are a highlight of the community; said that this is probably a seven or eight year project unless something comes along; and said he appreciates any consideration. Mr. Ames expressed a concern for the restrooms and that the park should not be a smoking area for high school kids. Mr. Stone acknowledged that is a challenge, but the idea is to provide more positive events in the park so the kids not interested will hopefully move on; said the restrooms were greatly vandalized so this year they had to use portable toilets; said restrooms are important but it is a challenge, adding that the high school physical education depaitment has also discovered the use of the courts too, which is great. 7. The Family Guide. Ms. Charity Doyl said she is the director of the Family Guide and the Family Fun Fair; said this information is being distributed at local schools in the Spokane and North Idaho area; they partner with schools, private companies, and libraries for their family fun fair; said the City of Spokane helped with their event and she went over the proposal; said she would love to propose that Spokane Valley launch a 4th Friday at the Valley, which would be a combination of a First Friday event and a night market; said First Fridays are art walks hosted by a city and are usually done the first Friday of the month. She explained some of the background of the Chapters and the night market, which she said is popular in the Asian culture; said you lose the personal touch due to the ability to buy so much over the Internet and she feels Spokane Valley residents are ready for a monthly event that highlights the community; said the Spokane Valley Mall offered to be host sponsor for the first year, and they want this to be seen by the community as an entity that gives back; she said the event will be held in the mall's Center Court; said they'll track revenue in the mall as well as participating vendors; there will be different themes every month and they will partner with other local organizations; and said it will tie in with the hotels specifically on Indiana Avenue; said they will highlight the positive attributes of our City and urge people to stay in the Valley instead of downtown Spokane; and that they will have a welcome packet placed at the hotels. She also explained that the events will feature the performing arts and said they have access to an amazing theater group and jazz bands, as well as Spokane gymnastics, and she would love to have City Hall at the Mall, and invite local business owners as they market Spokane Valley as a cultural destination. 8. Spokane County Fair and Expo — Interstate Fair. Fair Director Mr. Rich Hartzell gave some background of their operation; said they operate as a Spokane County Department enterprise fund, which means they don't take money from the County's general fund; said what they generate as revenue must cover their expenses. Mr. Hartzell gave a recap of the last fair which he said had a larger attendance over the previous year, even with the poor weather on the last day; said their proposal is to use the funds to enhance and publicly market and merchandise more of their entertainment; said many exhibitors come from out of town and out of state, and that they generate over 1,000 room nights with just the vendors; and mentioned that they are a regional fair. Marketing and Sales Manager Ms. Erin Gurtel mentioned the rating on their website, and said one property reported over 160 room nights this year; that they have reached out to ten Valley LTAC Meeting Minutes October 20, 2016 Page 4 of 8 properties, and they all report rooms, although not everyone tracks the room nights; said the vendors stay multiple nights, and that they would like to keep building on what they have to enhance their tight budget. 9. Spokane County Fair and Expo — Winter Glow Spectacular. Ms. Gurtel explained that she hopes this will be a signature event for the holiday season; she explained that the event was previously held at Riverfront Park, but that won't be possible this time due to the construction; said they plan to have over one million lights, have a light maze, a zoo, animated trees, and music to have a complete holiday festival; said they will have entertainment and the event will open December 9 for seventeen nights, and with the goal to make this an annual event, they are partnering with Winter Glow, which will bring the lights. She mentioned parking will be free which is an attraction, and that the public are familiar with the venue; said the cost will be $7.00 for adults, and $5.00 for youth and seniors, with those under six free. Mr. Cameron asked if Winter Glow has committed to this venue and Mr. Hartzell said they see tremendous potential, and that they will also have food booths, and arts and crafts, and sees this as a possibility for unlimited growth; and said they are working on a three-year contract. Mr. Cameron suggested a longer length contract. 10. Visit Spokane. Visit Spokane President and CEO Cheryl Kilday went over the proposal; said these funding requests are specifically about Spokane Valley; that they use funds from Spokane Valley for Spokane Valley; they work to amplify what is already here and to target specific audiences and leverage resources together; she went through her PowerPoint presentation and mentioned the new map, and showed the Committee members a sample; said this will be an aggressive marketing plan that helps promote Spokane Valley; also they have a new brochure they are recommending to be reproduced. Ms. Kilday then showed the video; said they have produced two videos and would like to do two more and get in more things, such as the museum, tasting rooms, and things to give a fullness to the Valley and not just the outdoor events and venues; said they have five areas of focus: leisure, international, group tours, travel influences, and meetings and conventions; and they use the virtual reality videos to show people this area and entice them to come here; said the goal is to develop three to five virtual videos this year. Mr. Cameron spoke about the lack of room nights due to the Grand Hotel downtown with their over 700 rooms and of their competitive rates; said we must continue to promote and Spokane Valley must do something to build attractions to bring in overnight guests. Ms. Kilday said that the downtown area has grown demand by 13% with the new convention center, new hotel, while Spokane Valley stays flat, which she said is good news as it is not declining; said the last three years their funding however, has declined, while funding from Spokane has increased; said they can't use Spokane money to promote Spokane Valley. Mr. Cameron said these are tough decisions on marketing and investing in the future for tourism -related projects, and Ms. Kilday remarked that they are trying to find a mechanism that goes beyond the hoteliers, and are also working on legislation concerning the state of Washington's state-wide tourism. There were no further presentations. Mr. Cameron said there are various ongoing studies concerning tourism, including a study that the Lodging Tax Advisory Committee recommended funding in excess of $80,000; said the County Sports Plan is nearly complete, as is the master plan; with all the studies there is no decision or guidance and no strategic plan; said he spoke with different community leaders, and if they are going to do the job with the investment interests in mind for Spokane Valley and those citizens and businesses, there is a need to identify capital projects, venues, and sports facilities to drive in overnight guests, and in keeping with City Council and Lodging Committee stated objectives to provide funds to be used for capital and operating expenditures for tourism and facilities to draw overnight facilities, he moved that $250, 000 be deducted from the available Lodging Tax funds for distribution in 2017 and have those funds moved into the 1.3% Lodging Tax Fund account dedicated for a large sports venue or venues for tourism facilities that generate overnight guests, and he recommend that this motion be provided for the Council's approval. The motion was seconded by Mr. Bill Ames. Mr. Cameron said he checked with the City's legal department and said they say this is permissible; that we could allocate $354,000 today and the $250,000 remaining on the table with a LTAC Meeting Minutes October 20, 2016 Page 5 of 8 recommendation that Council makes that final approval in the form of a motion; said he doesn't mind if the funds sit in limbo, and said that the Attorney General also said this is permissible. Ms. Doering argued against the motion and said that these agencies expected to be funded and plan their budgets according for the next year, and that this should have been discussed and have legal look at it. Mr. Cameron said the City Attorney said this is permissible. Finance Director Taylor added that she would like to get clarification about this process. Mr. Cameron said we could also ask for another round of applications if we so desired, and Ms. Doering said that a second round takes up a lot of staff time; and that this is a disservice to the people who came here to apply for funding and then have the application process circumvented this way. The motion passed with all in favor except Peggy Doering. Ms. Doering said she feels the committee should have further discussion; and Mr. Cameron said that everyone could have voted against the motion. Committee members took a few minutes to write down their recommendations, after which the group took a brief break at 11:28 a.m., and resumed at 11:36 a.m. Finance Director Taylor went over the recommended amounts on the spreadsheet and showed the ultimate averages. Mr. Cameron justified his recommendation by stating that Spokane Valley is not seeing the recovery rate of others and he tried to take those areas that actually produce, and fund them; said it is lodging who put that in the legislation with the intent to bring that money forward and regenerate it for more heads in beds; mentioned that this is the wrong year to put money in new events and new events have a certain history of failure rates; said there are only so many events that a community will support, adding that he is interested in hearing the results of some of the numerous studies; said everyone else is building: Coeur d'Alene, Airway Heights, downtown Spokane, but we are not and we are very limited when we talk sports, said there are no facilities internationally or national tournaments ready except for the HUB. Mr. Ames said he spoke with Mr. Champlin of the HUB and wondered why he wasn't asking for more, but that Champlin said that was the needed amount; said he has dealt with the Sports Commission for twenty-five years, and attend the fair annually; said there is a need to protect Valleyfest and he has faith that the Council will do that; and said he feels Spokane Valley needs to tax themselves to support that event; said there is no question Ms. Doering does a great job, but he doesn't see it resulting in hotel nights. Ms. Heinselman explained that she voted on what would make a difference to her business; said she doesn't know if Winter Glow would even bring four to her hotel in the future, and that she chose those entities proven to bring heads in beds; said she loves Valleyfest but even if marketed, and regardless of timing, it is a community event and she feels the City should be supporting them and not the Lodging Tax; said she has not been to the Museum and rhetorically asked if people come to the museum for the museum or for other reasons; said she looks at the numbers and what brings the biggest difference and said more dollars to a sports event facility would do that. Ms. Doering stated that goal #4 states that Council recognizes that lodging nights are an important measure of a successful event tor marketing programs and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays; but will take into consideration not just the hoteliers' perspective; said she realizes Council operates on a very lean budget and when it has been requested over periods of time for Valleyfest to be included in the budget, the answer has always been no; said this has been the venue for requesting funds; said the HUB technically is on our border, the Museum is a Valley entity and Parks and Recreation's project is for capital projects; and said the fair is within the City; said she came prepared to allocate the entire $604,000 which would not have left any zeros in her columns showing on the spreadsheet. There was discussion about using funds for capital projects, that hotel guests generate tourism dollars, with a comment from Mr. Cameron of why spend so much on studies if there is no intent to do anything about it; further discussion on use of the funds; that part of the process for capital projects includes land acquisition, and that citizens want to benefit from economic development; after which Councilmember Wood suggested that discussion be continued at another time. LTAC Meeting Minutes October 20, 2016 Page 6 of 8 Each committee member explained their rationale for their funding recommendation as shown in the attached spreadsheet, which included many of the points made earlier, and which ended with the following recommendation: (1) HUB Sports Center $40,000; (2) Valleyfest $31,600; (3) Valleyfest Cycle Celebration $5,000; (4) Spokane Valley Heritage Museum $9,500; (5) Spokane Sports Commission $115,600; (6) Spokane Valley Parks & Recreation: zero; (7) The Family Guide: zero; (8) Spokane County Fair and Expo Fair $47,000; (9) Spokane County Fair and Expo Winter Glow $2,170; and Visit Spokane $103,130. It was then moved by Mr. Cameron and seconded to accept the recommendation as noted. The motion passed with all in favor except Peggy Doering. It was moved by Ms. Heinselman, seconded and unanimously agreed to adjourn. The meeting adjourned at 12:20 p.m. Respectfully submitted, Chris Bainbridge, Spokane Valley City Clerk LTAC Meeting Minutes October 20, 2016 Page 7 of 8 LTAC Meeting Minutes October 20, 2016 CITY OF SPOKANE VALLEY, WA 2017 Lodging Tax Funding Requests and Awards Recommended by the Lodging Tax Advisory Committee (LTAC) Applicant Amount Requested 1) HUB Sports Center 2) Valleyfest 3) Valleyfest Cycle Celebration 4) Spokane Valley Heritage Museum 5) Spokane Sports Commission 6) City of Spokane Valley Parks & Rec Dept 7) The Family Guide 8) Spokane Co Fair and Expo - Fair 9) Spokane Co Fair and Expo - Winter Glow 10) Visit Spokane 2016.xIsx 10/20/2016 Recommended Awards Lee Cameron Bill Ames Sam Peggy Wood Doering Colleen Heinselman Average Amounts Recommended 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 150,000 0 0 10,000 148,000 0 31,600 31,600 25,000 0 0 0 25,000 0 5,000 5,000 27,500 0 0 20,000 27,500 0 9,500 9,500 200,000 134,500 169,000 124,500 0 150,000 115,600 115,600 233,508 0 0 0 0 0 0 0 35,000 0 0 0 0 0 0 0 60,000 45,000 45,000 60,000 40,000 45,000 47,000 47,000 20,000 0 0 0 10,850 0 2,170 2,170 282,830 134,500 100,000 99,500 62,650 119,000 103,130 103,130 1,073,838 354,000 354,000 354,000 354,000 354,000 354,000 354,000 LTAC summary CITY OF SPOKANE VALLEY, WA Hotel/Motel Tax Receipts through - September Actual for the years 2007 through 2016 January February March April May June July August September Total Collections P:\Finance\Finance Activity Reports\Tax Revenue\Lodging Tax\2016\105 hotel motel tax 2016 2007 1 2008 1 2009 1 2010 1 2011 1 2012 1 2013 1 2014 1 2015 1 2016 25,138 25,311 29,190 37,951 31,371 36,267 56,282 51,121 57,260 28,947 24,623 27,510 40,406 36,829 46,660 50,421 50,818 60,712 23,280 23,284 25,272 36,254 32,589 40,415 43,950 50,147 50,818 22,707 23,417 24,232 39,463 34,683 39,935 47,385 54,923 59,419 22,212 22,792 24,611 38,230 33,791 41,403 49,312 57,452 58,908 21,442 21,549 25,655 52,130 37,478 43,971 52,819 57,229 64,299 24,185 25,975 27,739 40,979 40,560 47,850 56,157 63,816 70,794 25,425 26,014 29,384 48,246 41,123 52,618 61,514 70,384 76,100 27,092 27,111 32,998 50,455 44,283 56,975 61,809 72,697 74,051 31,887 27,773 34,330 52,551 50,230 55,060 65,007 73,700 70,305 11/7/2016 2016 to 2015 Difference 4,795 17.70% 662 2.44% 1,332 4.04% 2,096 4.15% 5,947 13.43% (1,915) (3.36%) 3,198 5.17% 1,003 1.38% (3,746) (5.06%) 349,891 366,926 326,008 346,166 348,712 376,572 398,056 430,807 447,471 460,843 13,372 2.99% October 43,970 38,290 36,784 41,272 39,028 43,699 43,836 45,604 49,880 0 November 36,341 35,583 34,055 34,330 37,339 39,301 42,542 39,600 42,376 0 December 31,377 26,290 27,131 26,777 32,523 30,432 34,238 33,256 41,510 0 Total Collections 461,578 467,089 423,978 448,545 457,603 490,004 518,672 549,267 581,237 460,843 Budget Estimate 400,000 400,000 512,000 380,000 480,000 430,000 490,000 530,000 550,000 550,000 Actual over (under) budg 61,578 67,089 (88,022) 68,545 (22,397) 60,004 28,672 19,267 31,237 (89,157) Total actual collections as a % of total budget 115.39% 116.77% 82.81% 118.04% 95.33% 113.95% 105.85% 103.64% 105.68% n/a % change in annual total collected 10.67% 1.19% (9.23%) 5.79% 2.02% 7.08% 5.85% 5.90% 5.82% n/a % of budget collected through September 87.47% 91.73% 63.67% 91.10% 72.65% 87.57% 81.24% 81.28% 81.36% 83.79% % of actual total collected through September 75.80% 78.56% 76.89% 77.18% 76.20% 76.85% 76.75% 78.43% 76.99% n/a Chart Reflecting History of Collections through the Month of September 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2007 2008 2009 September 2010 2011 2012 2013 2014 2015 2016 September • August ■ July • June • May ■ April • March • February • January Page 23 CITY OF SPOKANE VALLEY, WA 2016 Budget Amendment and 2017 Budget Fund #105 - Hotel / Motel Tax Fund - Actuals for 2012 through 2015 - 2016 and 2017 Budgets Revenues Hotel/Motel Tax Investment Interest Subtotal revenues H:\Budget\2017\105 Rev and exp Actual 2012 2013 1 2014 1 2015 2016 As Adopted As Amended 6/27/2016 2017 Budget 490,004 518,672 549,267 581,237 550,000 580,000 580,000 592 387 299 484 300 300 500 490,596 519,059 549,566 581,721 550,300 580,300 580,500 Expenditures Tourism Promotion - contracted 511,756 30,000 0 0 0 0 0 Interfund Transfers - #001 CenterPlace 30,000 0 30,000 30,000 30,000 30,000 30,000 Interfund Transfers - #309 Parks Capital 0 0 0 68,000 0 60,650 0 Tourism Promotion 0 458,904 546,545 484,968 560,00 499,350 604,000 Subtotal expenditures 541,756 488,904 576,545 582,968 590 d 590,000 634,000 Revenues over (under) expenditures (51,160) 30,155 (26,979) (1,247) ( , 00) (9,700) (53,500) Beginning fund balance 257,932 206,772 236,927 209,948 2 :,701 208,701 199,001 Ending fund balance 206,772 236,927 209,945 208,701 •9,001 199,001 145,501 2016 Awards by Agency HUB Sports Center Spokane County Fair & Expo - marketing Spokane Regional Sports Commission Spokane Valley Heritage Museum Valleyfest - marketing Valleyfest - Cycle Celebration Visit Spokane City of Spokane Valley - volleyball courts at Browns Park City of Spokane Valley - Comm & Econ Development 40,000 45,000 121,600 17,200 28,900 3,000 163,650 60,650 80,000 560,000 for LTAC H:\Budget\2017\Lodging Tax\Lodging Tax Award History 03-16 CITY OF SPOKANE VALLEY, WA Lodging Tax Application / Award History For the years 2003 through 2016 AGENCIES 2004 2005 2006 2007 Application 1 Award Application 1 Award Application 1 Award Application 1 Award 07 Apply 07 Award Sprg 07 Appl, Sprg 07 Awai Armed Forces & Aerospace Museum 3,327 0 2,531 0 0 0 0 0 0 0 0 0 Burke Marketing 0 0 0 0 0 0 0 0 0 0 147,500 0 CenterPlace - marketing 0 0 0 40,000 0 0 0 40,000 0 40,000 0 0 CenterPlace - marketing to regional meeting planners 0 0 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley - Volleyball courts 0 0 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley - Directed Marketing 0 0 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley - Tourism Study 0 0 0 0 0 0 0 0 0 0 0 0 Chamber of Commerce 0 0 0 0 15,440 0 15,440 5,000 50,000 50,000 50,000 50,000 Evergreen Regional Volleyball Court Expansion 0 0 0 0 0 0 0 0 0 0 0 0 Fair & Expo Marketing 58,376 17,500 35,000 25,000 21,000 18,000 0 0 20,000 20,000 0 0 Fairgrounds 0 0 21,000 15,000 0 0 0 0 0 0 0 0 Friends of Centennial Trail 23,480 0 2,000 2,000 0 0 9,000 0 0 0 0 0 HUB Sports Center 0 0 0 0 0 0 0 0 0 0 0 0 Inland Dance Association 0 0 0 0 0 0 2,535 0 0 0 2,535 0 Inland NW Sr. Wellness Conference 12,500 0 0 0 0 0 0 0 0 0 0 0 Latah Creek Wine Cellars 20,000 0 0 0 0 0 0 0 0 0 0 0 Liberty Lake Rotary Club 0 0 0 0 0 0 0 0 0 0 0 0 Plantes Ferry Park 0 0 71,842 20,000 0 0 23,876 0 30,000 0 0 0 Six Bridges Arts Association 0 0 0 0 0 0 0 0 15,000 12,500 0 0 Splash -Down Family Waterpark 230,000 0 0 0 0 0 0 0 0 0 0 0 Spo Con 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Arts Commission 15,000 0 0 0 0 0 0 0 0 0 0 0 Spokane County Fair & Expo Center 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Horse Breeders of Inland NW 5,830 0 0 0 0 0 0 0 0 0 0 0 Spokane Polo Club 30,100 0 0 0 0 0 0 0 0 0 0 0 Spokane Regional Sports Commission 120,000 52,200 150,000 100,000 100,000 75,000 100,000 84,000 100,000 100,000 0 0 Spokane River Forum 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Symphony 20,000 0 20,000 0 0 0 0 0 0 0 0 0 Spokane Valley Heritage Museum 40,000 1,000 0 0 22,100 10,000 49,104 5,000 27,450 10,000 0 0 Spokane Valley Soccer Club 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Winery Association 3,285 0 8,250 2,000 0 0 0 0 0 0 7,500 7,500 Sports USA Sports Complex 103,000 0 0 0 0 0 0 0 0 0 0 0 SV Junior Soccer Association 96,642 24,800 71,842 0 0 0 4,000 4,000 0 0 17,000 30,300 U.S. Figure Skating 0 0 0 0 0 0 0 0 0 0 0 0 Valleyfest 19,724 2,800 49,700 0 27,200 15,000 25,900 15,000 30,000 25,000 5,000 5,000 Valleyfest (additional for Spring 07 (for float) 0 0 0 0 0 0 0 0 0 0 6,000 0 Valleyfest - Cycle Celebration 0 0 0 0 0 0 0 0 0 0 0 0 Visit Spokane (- .. - - - _ _ _ - _ _ . - - .) 200,000 83,700 250,000 150,000 200,000 136,000 200,000 165,000 175,000 175,000 78,000 78,000 WebMaker 39,000 0 0 0 0 0 0 0 0 0 0 0 YMCA 50,000 18,000 12,000 6,000 12,000 6,000 17,000 7,000 0 0 0 0 YMCA Skateboard Park 0 18,000 0 0 0 0 0 0 0 0 0 0 Total 1,090,264 218,000 694,165 360,000 397,740 260,000 446,855 325,000 447,450 432,500 313,535 170,800 Page 1 of 3 H:\Budget\2017\Lodging Tax\Lodging Tax Award History 03-16 CITY OF SPOKANE VALLEY, WA Lodging Tax Application / Award History For the years 2003 through 2016 AGENCIES 2008 2009 2010 2011 2012 Application 1 Award Application 1 Award Application 1 Award Application 1 Award Rnd 1 App 1 Rnd 1 Awrd 1 Rnd 2 App 1 Rnd 2 Awrd Armed Forces & Aerospace Museum 0 0 0 0 0 0 0 0 0 0 0 Burke Marketing 0 0 0 0 0 0 0 0 0 0 0 0 CenterPlace - marketing 90,000 90,000 0 90,000 0 37,500 0 0 0 30,000 0 0 CenterPlace - marketing to regional meeting planners 0 0 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley - Volleyball courts 0 0 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley - Directed Marketing 0 0 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley - Tourism Study 0 0 0 0 0 0 0 0 0 0 0 0 Chamber of Commerce 155,000 0 0 0 0 0 0 0 0 0 0 0 Evergreen Regional Volleyball Court Expansion 0 0 0 0 0 0 0 0 0 0 0 0 Fair & Expo Marketing 30,000 30,000 30,000 18,250 0 0 0 0 0 0 0 0 Fairgrounds 0 0 0 0 0 0 0 0 0 0 0 0 Friends of Centennial Trail 0 0 0 0 0 0 0 0 0 0 0 0 HUB Sports Center 0 0 0 0 0 0 40,000 40,000 50,000 42,600 0 0 Inland Dance Association 0 0 0 0 0 0 0 0 0 0 0 0 Inland NW Sr. Wellness Conference 0 0 0 0 0 0 0 0 0 0 0 0 Latah Creek Wine Cellars 0 0 0 0 0 0 0 0 0 0 0 0 Liberty Lake Rotary Club 0 0 0 0 0 0 0 0 0 0 5,000 0 Plantes Ferry Park 0 0 0 0 0 0 0 0 0 0 0 0 Six Bridges Arts Association 0 0 0 0 0 0 0 0 0 0 0 0 Splash -Down Family Waterpark 0 0 0 0 0 0 0 0 0 0 0 0 Spo Con 0 0 0 0 0 0 0 0 70,131 0 0 0 Spokane Arts Commission 0 0 0 0 0 0 0 0 0 0 50,000 0 Spokane County Fair & Expo Center 0 0 0 0 0 0 0 0 0 0 30,000 25,900 Spokane Horse Breeders of Inland NW 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Polo Club 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Regional Sports Commission 175,000 145,000 190,000 115,000 150,000 120,000 165,000 165,000 200,000 185,000 0 0 Spokane River Forum 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Symphony 0 0 0 0 0 0 0 0 0 0 0 0 Spokane Valley Heritage Museum 0 0 30,260 3,250 11,600 5,000 5,000 5,000 5,000 3,900 5,000 1,100 Spokane Valley Soccer Club 0 0 0 0 0 0 0 0 0 0 25,000 0 Spokane Winery Association 8,300 8,300 9,000 0 0 0 0 0 0 0 0 0 Sports USA Sports Complex 0 0 0 0 0 0 0 0 0 0 0 0 SV Junior Soccer Association 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Figure Skating 0 15,000 0 15,000 0 0 0 0 0 0 0 0 Valleyfest 40,000 30,000 50,000 27,500 50,000 30,000 50,000 36,000 50,000 0 50,000 30,000 Valleyfest (additional for Spring 07 (for float) 0 0 0 0 0 0 0 0 0 0 0 0 Valleyfest - Cycle Celebration 0 0 0 0 0 0 0 0 0 0 0 0 Visit Spokane (Spokano Vicitor Convontion Buroau) 325,000 306,000 336,000 236,000 275,000 195,000 250,000 250,000 0 0 275,000 251,720 WebMaker 0 0 0 0 0 0 0 0 0 0 0 0 YMCA 0 0 0 0 0 0 0 0 0 0 0 0 YMCA Skateboard Park 0 0 0 0 0 0 0 0 0 0 0 0 Total 823,300 624,300 645,260 505,000 486,600 387,500 510,000 496,000 375,131 261,500 440,000 308,720 Page 2 of 3 1 6/24/2016 1 H:\Budget\2017\Lodging Tax\Lodging Tax Award History 03-16 CITY OF SPOKANE VALLEY, WA Lodging Tax Application / Award History For the years 2003 through 2016 AGENCIES 2013 2014 2015 2016 Application 1 Award Application 1 Award Application 1 Award Application 1 Award Armed Forces & Aerospace Museum 0 0 0 0 0 0 0 0 Burke Marketing 0 0 0 0 0 0 0 0 CenterPlace - marketing 0 30,000 30,000 30,000 30,000 30,000 30,000 30,000 CenterPlace - marketing to regional meeting planners 0 0 0 0 30,000 17,000 0 0 City of Spokane Valley - Volleyball courts 0 0 0 0 120,000 68,000 160,000 60,650 City of Spokane Valley - Directed Marketing 0 55,000 0 0 0 0 0 0 City of Spokane Valley - Tourism Study 0 0 0 0 0 0 86,750 80,000 Chamber of Commerce 0 0 0 0 0 0 0 0 Evergreen Regional Volleyball Court Expansion 0 0 7,500 7,300 0 0 0 0 Fair & Expo Marketing 0 0 0 0 0 0 0 0 Fairgrounds 0 0 0 0 0 0 0 0 Friends of Centennial Trail 0 0 6,600 0 0 0 0 0 HUB Sports Center 50,000 21,100 40,000 36,000 40,000 40,000 40,000 40,000 Inland Dance Association 0 0 0 0 0 0 0 0 Inland NW Sr. Wellness Conference 0 0 0 0 0 0 0 0 Latah Creek Wine Cellars 0 0 0 0 0 0 0 0 Liberty Lake Rotary Club 0 0 5,000 0 0 0 0 0 Plantes Ferry Park 0 0 0 0 0 0 0 0 Six Bridges Arts Association 0 0 0 0 0 0 0 0 Splash -Down Family Waterpark 0 0 0 0 0 0 0 0 Spo Con 0 0 0 0 0 0 0 0 Spokane Arts Commission 0 0 0 0 0 0 0 0 Spokane County Fair & Expo Center 30,000 27,800 50,000 39,800 44,000 44,000 100,000 45,000 Spokane Horse Breeders of Inland NW 0 0 0 0 0 0 0 0 Spokane Polo Club 0 0 0 0 0 0 0 0 Spokane Regional Sports Commission 200,000 150,200 200,000 183,800 200,000 120,000 200,000 121,600 Spokane River Forum 0 0 0 0 1,000 1,000 0 0 Spokane Symphony 0 0 0 0 0 0 0 0 Spokane Valley Heritage Museum 12,000 6,400 20,000 13,100 28,209 18,400 35,800 17,200 Spokane Valley Soccer Club 0 0 0 0 0 0 0 0 Spokane Winery Association 0 0 0 0 0 0 0 0 Sports USA Sports Complex 0 0 0 0 0 0 0 0 SV Junior Soccer Association 0 0 0 0 0 0 0 0 U.S. Figure Skating 0 0 0 0 0 0 0 0 Valleyfest 50,000 35,200 50,000 20,000 64,000 31,600 60,000 28,900 Valleyfest (additional for Spring 07 (for float) 0 0 0 0 0 0 0 0 Valleyfest - Cycle Celebration 0 0 0 0 0 0 10,000 3,000 Visit Spokane (Spokano Vicitor Convontion Buroau) 350,000 184,800 280,000 247,000 328,430 230,000 253,777 163,650 WebMaker 0 0 0 0 0 0 0 0 YMCA 0 0 0 0 0 0 0 0 YMCA Skateboard Park 0 0 0 0 0 0 0 0 Total 692,000 510,500 689,100 577,000 885,639 600,000 976,327 590,000 Page 3 of 3 Total I Application 1 Award 5,858 0 147,500 0 180,000 487,500 30,000 17,000 280,000 128,650 O 55,000 86,750 80,000 285,880 105,000 7,500 7,300 194,376 128,750 21,000 15,000 41,080 2,000 260,000 219,700 5,070 0 12,500 0 20,000 0 10,000 0 125,718 20,000 15,000 12,500 230,000 0 70,131 0 65,000 0 254,000 182,500 5,830 0 30,100 0 2,250,000 1,716,800 1,000 1,000 40,000 0 291,523 99,350 25,000 0 36,335 17,800 103,000 0 189,484 59,100 O 30,000 671,524 332,000 6,000 0 10,000 3,000 3,776,207 2,851,870 39,000 0 91,000 37,000 O 18,000 9.913.366 6.626.820 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 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: Barker Road/BNSF Grade Separation Project — Final Design Status GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Adopted the 2016-2021 Six Year Transportation Improvement Program (TIP), which included this project. Admin Report on April 5, 2016 on use of Federal Earmark funds for final design. BACKGROUND: Staff will present an update on the status of the final design process for the Barker Road/BNSF Grade Separation Project. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: An additional $300,000 in REET funds was approved to be added to the $720,000 federal earmark funds for the final design effort. STAFF CONTACT: Steve M. Worley, P.E. — Capital Improvement Program Manager Eric Guth, P.E. — Public Works Director ATTACHMENTS: PowerPoint Presentation 1 Barker Road/BNSF Grade Separation Project City of Spokane Valley Public Works Department November 15, 2016 2 Agenda • Background • Recent Grant Applications • Current Funding • Proposed Final Design • Future Grant Opportunities • Questions Background • Project Description The Barker Road/ BNSF Grade Separation Project replaces an at - grade crossing with an overpass of BNSF's railroad tracks and Trent Avenue (SR 290); incorporates interchange ramps to provide access between Barker Road and SR 290; connects Barker Road to a large residential area to the north; and closes the at -grade crossing of Flora Road at the BNSF railway. 3 X Remove Barriers: Remove A[ -grade Grossing} Remove Barr mss:Grade Acid g edeshian Facilites 411H11* • Gonnec -r3ifhem on Heil Wellesley Ave .,r Oink Background • Part of the larger Bridging the Valley Project • Began prior to Spokane Valley Incorporation • Lead by SRTC • Many Stakeholder Agencies - WA Et ID • City staff joined Stakeholder Committee in 2003 • Valley Improvements - Park, Pines, Sullivan, Barker 4 Bridging the Valley Partners State and Local Agencies • Idaho Transportation Department • Washington State Department of Transportation • Washington Freight Mobility Strategic Investment Board • tWashington Utility and Transportation Commission ▪ State and Federal Legislators Regional Agencies • Spokane Regional Transportation Council • Spokane Transit Authority Kootenai Metropolitan Planning Organization Railroads • BNSF Railway Local Agencies and Districts • Kootenai County • Spokane County • City of Athol • Town of Millwood • City of Rathdrum • City of Spokane Union Pacific Railroad • City of Spokane Valley • Area Fire DistrictsTmergency Response Systems • Area School Districts Chambers of Commerce • Spokane Valley • Spokane Regional 5 Background • Federal Funds through SRTC used for Bridging the Valley (BTV) • Develop Purpose and Need for entire project • Achieve Environmental Clearance (NEPA approval) • Prepare 30% Design • All proposed Grade Crossings • Railroad consolidation (UPRR to BNSF corridor) • BTV Grade Crossings Completed • Havana Street Overpass • Hwy 53/41 Junction - Idaho • "30%" Plans sitting on shelf since 2004 - waiting for federal funding • Barker Et Pines projects in SRTC's Horizon 2040 Plan Background 6 m PROPOSED BARKER ROAD PRELIMINARY, SUBJECT TO CHANGE DECEMBER 31, 2004 ROPOS D 1' 1 WELLESLEY ROAD ' PROPOS D DRAINAGE SWALE, TYP. ' CLOSE WELLESLEY PROPOSED BARKER ROAD Background Barker Grant Activities • Federal Earmark - through SRTC • Received in 2010 • $720,000 • Freight Mobility Strategic Investment Board (FMSIB) • Selected in 2010 • 20% up to $10 million • Construction Phase only • Current Schedule: 2019-2020 8t 2021-2023 Biennium's 6ecernber Ile 2010 peal1. Merlin, P F ESM.. ...gen Local prowans Engineer WSFJST 2111N Mayfair Secal. Spokane WA 9B20 -T SWIaa WA 220 Gawarm nl ce hi rroay.ral crossings in imcearc Co. WAS Kootenai Co. ID Deer Mr Wren: An pert el Va owraa RnAplrlg me Valley Program W pmjem. Spakne Regional Tcennpoh ado Cone II ISRT0) le Iraredernng Bra abew rain enced lursdiny b Ila City 91 Spokane Valley For the further development al [Ile Berke RmaOMSF Groan Senora -Ian Prvje, senvled at Sla[e Rohe 2BlF and Barker Raed. BRTC untla'akana61h10 V. Gay p{ Spa Nene nanny MI Wean these Curds la hpher anal design eRaaa C Fader k IdeMpy saki Hfight of way ree[cp carf to ot.pl the procact Iron pmerxmI errncachm all Met wae Id adversely invent +akin. ...budge owls Tan SI:TC and Gty elSanaa ne Valley have agreed ki edvalyda Cts Farkas Roar, Imre emenlle Telma Ina Park Road and Pries ReaJ r iunrre•rnla dun w LI e reign Email r+nlsnuel For wk.-FNI da.V loprn.nr In Tho area T,v e a ala: a IaN der need le eadrens the faiknp level of ver. eel Ne BBMe r.. Irani rrearoadrrn r01he re -alignment of Welealey Road. Shouldyou Pew ryA:Pans. phase Feel free to wrmctme Sins. f Main F. Milea, Trmapo0eben Manoigge Concurrence: ----1'r�j "'I- GtIyalSpdtxteVal 7 40,14. • rREIGNTMOBILITY STRATEGIC INVESTMENT HOARD r. r ryra oon e.. MI • 1.1J.,•11111• cane ante Mal+dMr • 4.1 across • roan psa ra:ww seawater la The Flona ble Tan Towey city yr 9po4ICc ogle. 11]0]11..1 Bcnsor AvpyK Snokm. Valles, WA 9pIP3 ince Mr.-reecy. Cunkre.letilns h Iu.IYnpb11ilre I Same yn a lha your pmjat has been ,levan by the Frei* Mu bila. Blra nk Ievpm111.11 Bead b our seventy campkmd project Ynxien promo to bei®clanW cm em an Lsc cntis.9Ilsr. Fipd- pmten eaainal mem nehatedn hath a aa)edcel amop mesh eadn &.d ISI Ylavbmdd nCOlc- Res Ind ins* tke naplinabon,re Tolman ed f N,B.ika EUTA F Cswk YcpreniFon Dl*{N. the learn xa+d cc` Sp+em!r 19, 9M0 me. your EeWti to nm acme prejon tial. -Inc pekes rill le Heed ma'am elc learn steam hie Inc iaLal4J ,n rabum. 1,10..+14eme Toad Pnjrd Coe •MSI&Sheer neexer Bdax.9>.• Gra de Separerlan 549,110,004 519,000,O00 Tku Fh19115,mnril nr.m 711, pc to retie snare oithe pmjenfly salute Ore Bmrd f nJ> as Kqunr.d tv k•.r•ps r+lrr lisp. P IKp algl rare. pmsihle. She FMRIR fund, arealeom il4d N. arM ncnica penenf.y. If lee proem ml gees., ani flltllf dollar amain l willt.npplied Ifdk wee. cog data dawn In! rtrceap 111..1KIII be eppI 1. While .aur projai b. ben Calomel es a mooed: M11u he-ry hnaceplc fearnentn Hoorn prc>ce. 0a Hoard nC I need torecuesl•urdinc a rorcWiWin from rM Lceelal. hednrc the Are pM81H shurc:an Fe uppnned far r! ack.. Since YOU eiiiso r"xlpwwafr Ike analdxcto_ot5, the anud uiklfoga¢frrnd"vrB aWhcriaalirn fr. Ne LeviaCawrc nC,Cr OMNI I e claw Wcq_tpruct ap. Background 8 Barker Grant Activities • TIGER Grant Apps - 2014, 2015, 2016 • FASTLANE Grant App (combined with Pines crossing) - 2016 • TIGER Et FASTLANE Grant Debriefs • Highly Recommended • Highly Rated • Made it to USDOT Secretary's Desk • Encouraged to Resubmit U. S. LFcxr, aloe[ M irainprntaholl [Wire r f l:le Serrrrary d Irarnpo L l Iwr lranspnrrarinn Irnwcrmrm r 1 raring Frorrlmir Hrcrvny (TIGER} EY 2016 Grant Applcation Bridging the Valley: Barker Road/BNSF Grade Separation Project !1P1..11iGToeL! Lac kmdaeldipagUF WkJE Prmruryero)en Tyle. Srondagmfinyithusing - TIGr3i r'ardiNg kequest: 515. ES .0,00\a1ley U.S. Depenrnem of Irarspvlatirr Ulfceor the Scuctaryof halsporidto, fwminq MAI nc1l Rsltsin Aripping and Irensportatio' ix t Lora icon Achievement of National Hfdcndes (MSI LANE) FY 201.6 Lunt Rpplkdlirn Bridging the Valley: Barker Road and Pines Road (SR 27) BNSF Grade Separation Project rarM Ilrvni ir:n i::::in :. :r,lir Ir,!,! alol:�I:1:ir; rn. r. ai:.Il.1i Iii•hw.'.'.:::.:.I: n��In�pr r„,�.,:�. n.,::: �.,.. �::d„�I,•.I:.I�I nlrnw_ ..:�i..�,T,�I�I_��: araa., ,. n.::.,I .��rn„M1 h nm xJl Gv,givm cn :-.un,.nn.�.,r lln.lrri <::mlH.i:�nur Alen Irr II,.. I'nli•I:on :..r a:kn.:l,i•. pI”. r+: ll riaunxr:r,:.rra I O.5I dud -m.11 pr::nxr n In: darl ii.uu•hohle ':'plaa,un fLI,k!n xril n:r.. ��: rr I. :......:I ...IIIc..... ................ Bardgnp the Valle*: Bnker and rloesl5n n! Otr Yr Grade Separator Rale, V*I 7 0. 113 4E41060. l,,.RMF,W0. Ma nn� l:1:,., 914,Yat kr ralway. Yr• li.nly trr lGrW'rIIrN,P h Wq hrt ,ojccrfan I: rent r.InnG Irn:ialGanr wlrn,n i8a.n1r?(2010 E nun) Yca. N Nr rof .s r Ma) Background 9 Current Budget Et Funding Funs Source Funding ($) Funding (%) Federal Funding Committed Anticipated 2009 Federal Earmark* TIGER FY 2016 Subtotal: $720,000 $26,254,845 $26,974,845 2.0 72.9 74.9% Non -Federal Fungi Committed Expected WashingtonState Fmk** City of Spokane Valley BNSF'** Subtotal: S7,207,000 3/42$733 5432 720 S9,060,155 20O% 3_9% 12% 25.1% Total: $36,035,000 100% The federal earmark requires the next phq of the project to fftart 10 years of using the earmark © S1:13 has committed to funding 20% of the total Rarlor Road:MccinonmS up to 510 �&oa 8*eer 2Clk 646210: EN5T v.@ determine their funding commitment once the am%design p1ans and ma e (done in 21X4)have been brought up to current fftaixlards. Their letter of support demonstrates their .aillingness to contribute to the funding of t&kprojec. 10 Proposed Final Design • Use Federal Earmark - $720,000 (or risk losing the funds) • Provide additional $300,000 City Funds • Total available to complete design - $1,020,000 • Design Estimate based on: • Barker Road Bridge consultant design cost - $920,564 • Sullivan Road Bridge consultant design cost - $1,637,530 • Very little Environment work needed - NEPA approved • Less design needed - "30%" plans already prepared • Public 8t Property Owners support of project Proposed Final Design Consultant Selection Process • Advertised Request for Qualifications (RFQ) • Received 2 Responses • David Evans 8t Associates/HDR Engineering • KPFF • Interviews held on August 31, 2016 • Team of DEA/HDR selected as most qualified 11 .Val ley, CITY OF SPOKANE VALLEY Public Works Department REQUEST FOR QUALIFICATIONS (RFQ) Engineering De -sign Services Barker Raad.. BNSF Grade Separation Project #0143 Jul: 15, 2016 Publication Dates: July 15 and July 22, 2016 Proposed Final Design Current Design Considerations (12 years since "30% Design" completed) • Substantial changes since 2004: • WSDOT Design Approval Process for SR 290 • WSDOT "Practical Design" Requirements • Bridge Design Methods (LRFD) • BNSF Clearance Requirements • SRTC Requirements for Regionally Significant Projects • Proposed Realignment of Wellesley Avenue • Area of Potential Effect (APE) - due to Wellesley Ave changes • Project Specific NEPAApproval needed • "30%" Design is really only -10% Design 12 Chapter 1100 Practical Design 1106.01 General 1100.02 Practical Design Procedure 1100.03 Community Engagement 1100.04 Multiagency, Interdisciplinary, and Stakeholder Advisory Team 1106.05 Need and Performance Identification 1100.06 Context Identification 1106.07 Design Control Selection 1100.6$ Alternative Formulation and Evaluation 1100.09 Design Element Selection and Dimensions 1100.10 Documentation Tools 1106.11 References 1101/01 General The Washington State Department of Transportation (WSDOT) has adopted practical design as an approach to making project decisions. This chapter provides a process and informational overview of practical design and implementation expectations with this approach. This chapter will introduce terminology, general information, and a procedural process overview, while the remaining chapters in Division 11 provide specific design policy details for each procedural step. WSDOT's practical design approach is based on context sensitive solutions and performance- based design, which utilize a collaborative approach, design flexibility, and a high likelihood of variable solutions. Asa result, WSDOTs practical design finds consistency through the procedural process applied rather than specific project -type outcomes. Proposed Final Design 13 Current Conceptual La out KEY DESIGN ((AfuRC& ,. baprNnr tEd aya? PM WSW {M!}E en+E f rem Axe 9•41e'w01M4 And 10.-Ya1a I *p4 Ow No, Eta/ 1.1QI Ehlwgin rama6 tteiweerl Orr Rd AAd trint 144 Oigturo 151 N ollailey Axe brialgis or.. IrenE Av. and K f - 61444r41- 04 FMwI. RSI613H1F st!-gr Ail srnwsing1nt1a YIP*t t_=2E'.. _ nisi —Wine Lgwe rnakiirte =aura sldkrj 3j G '.A1 LECF`+:" Ewue No SGek, Fuaye reaiflnc ifdI Proposed Final Design • Major Tasks Needed • Capacity Justification Report - SRTC • Geotechnical Explorations • Traffic Modeling 8t Analysis • Topographic Surveying • NEPA documents specific for just this project • Alternatives Analysis (Practical Design) • Public Involvement Program • BNSF Coordination/Design Approval • True 30% Structures 8t Design Documents • Intermediate Design Documents (- 50%) • Updated Cost Estimates - 30% and 50% Engineering Procurement of Engineering Services • Task 1: Surveying &. Ma*�t • Task Z: Utility Cacrdinat Bid Letting & Construction Tank 3: 30% Plans and E • Task 4: 60% PSEVF • Task 5: 90% FS&F • Task 6: Final PS&E • Task 7: Local Agency Pe • Task 8: Public Involvem+ • Task 9: Project Manager • Task 10: QualityManagc • Task 11: Project Team IV Tasks 1 through 6 will be comple shown, while Tasks 7 through 11 throe€ pout the course of the ens 14 • Final PS&E Review by FHWA. WSDOT, Spokane Valley; and BNSF • Advertisement and Bid Letting • Procurement of Contractor • Notice to Proceed Shop Drawings and Submittal Reviews Fabrication of Structural Supports Mobilization and Erosion Control • Temporary Traffic Control • Utility Demarcation • Bridge Structure Construction • Roadway and Rail Construction • Site Visits and Inspection Record ("As Constructed") Drawings Meetings Proposed Final Design • Tasks Not Included with this effort: • Final Design Documents - 100% • Final BNSF Approval • Final WSDOT/ FHWA Approval • Right -of -Way Acquisition • Limited Access Hearings/Requirements (WSDOT) • Consultant Negotiations are Continuing • Fee Estimate • $1.3 million for current scope 15 Z016 mffiknEavraguesv,par "143. 201? Ole fan Proposed Final Design • Schedule • Consultant Contract Approval - December • Future Grant Opportunities? • FASTLANE 2017 - (Due December 15, 2016) • TIGER 2017 • SRTC Call for Projects 2017 • TIB Annual Call for Projects • Others? 16 Task 2016 - 2017 Project management and Quality Control November. 2016 — December, 2017 CLIENT and WSDOT Coordination November, 2016 -December, 2017 Corridor Inventory and Data Collection November, December 2016 Design Surveying January, 2016 GeotechnicalBorings January, 2016 BNSF ROE, Design Exception Meeting January, 2016 Confirm Planning Framework December, 2016 Traffic Modeling and Analysis November; 2016 to February, 2017 Public Involvement Tasks January, 2017 to October, 2017 NEPA Documentation November, 2016 to September, 2017 Interchange and Bridge Alternatives Analysis November, 2016 to February, 2017 BNSF Design Phase A Review February, 2017 Basis of Design Memorandum February, 2017 WSDOT Preliminary Bridge Plans Approval April, 2017 Design Approval Memorandum May, 2017 Channelizat ion Plans for WSDOT Approval August, 2017 BNSF Design Phase B Review September, 2017 Intermediate Plans and Estimate Complete September, 2017 Final BNSF Design Phase B Review October, 2017 17 Proposed Final Design Options for moving forward • Move forward with Proposed Scope and Fee • $300,000 additional funds needed • Completes NEPA Process • Provides Full Topographic Survey • Provides 2 of 3 BNSF approvals • Provides - 50% Design • Reduce Scope to fit current budget • Same as above but only -40% Design complete • Other? 18 Proposed Final Design Staff and Consultants working hard to identify only those design tasks that are absolutely necessary to position this project for future federal grant funding opportunities while at the same time working through the myriad of approvals needed by multiple outside agencies Questions? 19 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 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: USDOT FASTLANE II Call for Projects GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Adoption of the 2017-2022 Six -Year Transportation Improvement Plan (TIP), Resolution No. 16-009, June 28, 2016; Info RCA, November 8, 2016. BACKGROUND: On October 28, 2016, USDOT announced it is conducting a call for projects for FASTLANE II grants. This is the second year of the FASTLANE grant program which was established in the Fixing America's Surface Transportation (FAST) Act to fund critical freight and highway projects across the country. The FAST Act authorized the program at $4.5 billion for fiscal years 2016 through 2020, including $850 million for FY 2017 to be awarded by the Secretary of Transportation. The City applied for the 2016 FASTLANE grants earlier this year seeking funds to design, purchase right-of-way, and build both the Barker Road and Pines Road (SR27) BNSF Grade Separation projects. The City's application made it to the final round; the City's project was not selected. City staff, on October 31, 2016, conducted a conference call with USDOT to debrief the City's 2016 FASTLANE application to determine how the application ranked and how best to make future applications stronger. After the debrief with the USDOT and knowing that there is a new call for projects for the FASTLANE II, staff strategized on how best to apply for FASTLANE grants this round. From that discussion, staff's conclusion was that it appeared that the City by combining both the Barker Road and Pine Road grade separation projects, may have been too ambitious and that we may have been successful had applications for each of the projects been submitted separately. For this round, staff recommends that grant applications be submitted again for the Barker Road and Pines Road Grade Separation project. Because of what was discussed with the USDOT during the debrief, staff may recommend that applications be submitted separately for each project or if the City Council elects to submit the grant applications for these projects together that there be a phasing scheme whereby USDOT can select a phase to fund in lieu of the entire project. Awarded FASTLANE grants can provide up to 60% of all funding to design, purchase right-of- way, and build a project. For these two proposed grade separation projects, the FASTLANE II funding breakdown for each project could be as follows: Possible FASTLANE Grant Funding ($ in millions) Barker Rd/BNSF Grade Separation Project Total Estimated Project Cost FMSIB Grant Award (Up to 20% for Construction) Federal Earmark Remaining Balance FASTLANE GRANT (60% of $36.03M) Remaining Shortfall $36.0 -$7.2 -$0.72 $28.1 $6.5 Pines Rd/BNSF Grade Separation Project Total Estimated Project Cost $19.8 City Design 2016 -$0.5 City Design 2017 -$1.2 Remaining Balance $18.1 FASTLANE GRANT (60% of $19.8M) -$11.9 Remaining Shortfall $6.2 All projects selected for FASTLANE II grant funding must be obligated by September 30, 2020 and construction must begin by March 30, 2022. When the USDOT evaluates project applications for `readiness' and `ability to move forward,' project schedules with obligation and construction dates closer to these deadlines will be considered more risky. Therefore, the grant applications for the Barker and Pines Grade Separation projects will show proposed schedules beginning much sooner than 2020 and 2022. The deadline for submitting applications is 8:OOPM EST on December 15, 2016. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: If the City is successful in obtaining a FASTLANE grant, the City would be responsible for the local match. The FASTLANE grant covers up to 60% of the total project cost. However, a combination of Federal grants can fund up to 80% of the project cost and a combination of State and local funds can count towards the local match. Staff will continue to pursue other grant funding opportunities to provide the additional matching funds. STAFF CONTACT: Eric Guth, PE — Public Works Director Steve Worley, PE — CIP Manager ATTACHMENTS: DRAFT ADVANCE AGENDA as of November 10, 2016; 8:30 a.m. Please note this is a work in progress; items are tentative To: Council & Staff From: City Clerk, by direction of City Manager Re: Draft Schedule for Upcoming Council Meetings Nov 17, 2016, Special Meeting, 8:30 a.m. — 11:30 a.m.. Council Chambers Joint Mtg with Water Districts Tentative Topics include: (1) In -stream flow rules from Ecology (2) Recent Supreme Court decision in the Whatcom County v. Hirst case (3) Support legislation clarifying Valley water provider's water rights: Support Senator Padden's efforts to adopt legislation that clarifies that the water rights held by water providers serving the Spokane Valley region can be changed from irrigation to municipal water supply purposes without going through the change of use permitting process that is currently required (4) City of Spokane Valley utility tax proposal (5) City of Spokane Valley proposal regarding abandoned utility infrastructure located in City rights-of-way. Nov 22, 2016, Special Meeting, 3:30 -5 p.m., 2" Floor Conf Room, City Hall Council meets with Lobbyists and 4th District Legislators Nov 22, 2016, Formal Meeting Format, 6:00 p.m. Proclamation: In Support of Small Business Saturday 1. Consent Agenda (claims, payroll, minutes) 2. Second Reading Proposed Ordinance 16-018 Comp Plan — Mike Basinger 3. Motion Consideration: Parks Maintenance Contract — Mike Stone 4. Motion Consideration: CenterPlace Catering Contract — Mike Stone [due Tue, Nov 15] (5 minutes) (20 minutes) (10 minutes) (10 minutes) 5. Motion Consideration: 2017 FASTLANE Grant Opportunity — Eric Guth (10 minutes) 6. Admin Report: State Supreme Court Decision: Whatcom Co. vs. Hirst — J. Hohman, Tadas Kisielius(30 mins) 7. Admin Report: Advance Agenda — Mayor Higgins (5 minutes) 8. Info Only: (a) Dept Reports; (b) Street Maint Contract Renewal; (c) Street Sweeping Contract Renewal [*estimated meeting: 90 minutes] Nov 29, 2016 — No Meeting — Thanksgiving Holiday Nov 30, 2016, Sports Facility Study Meeting 3:00 -5 p.m., CenterPlace, Room 109 (CSL Marketing Group) Hosted by Spokane County Parks. Public Hearing: 5-9 Great Room Dec 6, 2016, Chamber of Commerce, Breakfast Meeting. Topic: City's Proposed Utility Tax Dec 6, 2016, Study Session Format, 6:00 p.m. [due Tue, Nov 29] 1. District Court Presentation — Mark Calhoun, Judge Walker, Court Admin. John Witter (30 minutes) 2. Property Crimes, Wa. Assoc. of Sheriffs & Police Chiefs (WASPC) — Mike Werner (15 minutes) 3. Myrtle Point Cleanup — Cary Driskell (20 minutes) 4. Street Maintenance Contract Renewal — Eric Guth (10 minutes 5. Street Sweeping Contract Renewal — Eric Guth (10 minutes 6. City Hall Update — Eric Guth (10 minutes) 7. Advance Agenda — Mayor Higgins (5 minutes) [*estimated meeting: 100 minutes] Dec 13, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Motion Consideration: Funding Allocation, Lodging Tax — Chelsie Taylor 3. Motion Consideration: Street Maintenance Contract Renewal — Eric Guth 4. Motion Consideration: Street Sweeping Contract Renewal — Eric Guth 5. Admin Report: Tourism Study — Gloria Mantz, and Mark Goodman, CAI 5. Admin Report: Advance Agenda — Mayor Higgins [due Tue, Dec 6] (5 minutes) (25 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting: 55 minutes] Draft Advance Agenda 11/10/2016 10:48:29 AM Page 1 of 2 Dec 20, 2016, Study Session Format, 6:00 p.m. 1. Advance Agenda 2. Info Only: Department Reports (normally due for Dec 27 mtg) Dec 27, 2016 — No Meeting — Christmas Holiday [due Tue, Dec 13] (5 minutes) [*estimated meeting: minutes] January 3, 2017, Study Session Format, 6:00 p.m. [due Tue, Dec 27] 1. Mayoral Appointment: Two Planning Commissioners (3 -yr. terms) (5 minutes) 2. Mayoral Appointment: Two Members for Lodging Tax Advisory Committee (1 or 2 yr. terms) (5 minutes) 3. Mayoral Appointment: Councilmembers to Various Board and Committees for 2017 (10 minutes) 4. Advance Agenda — Mayor Higgins (5 minutes) January 10, 2017, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins January 17, 2017, Study Session Format, 6:00 p.m. 1. Advance Agenda January 24, 2017, 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 January 31, 2017, Study Session Format, 6:00 p.m. 1. Advance Agenda February 7, 2017, Study Session Format, 6:00 p.m. 1. Advance Agenda February 14, 2017, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: 8th & McDonald follow-up (April, 2017) AWC Citizen Action Days (Feb 15-16, 2017) Consultant Agreement Design Barker Rd/BNSF Separation Project Oath of Office SCRAPS Update Second Amendment Sanctuary City Term Limits Undergrounding Utility Facilities in ROW Utility Tax Winter Workshop [due Tue, Jan 3] (5 minutes) (5 minutes) [due Tue, Jan 101 [due Tue, Jan 17] (5 minutes) (5 minutes) [due Tue, Jan 24] [due Tue, Jan 31] [due Tue, Feb 3] (5 minutes) (5 minutes) Draft Advance Agenda 11/10/2016 10:48:29 AM Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 15, 2016 Check all that apply: ❑ consent ❑ old business ® information ❑ admin. report AGENDA ITEM TITLE: Information — Browns Park County Water District No. 3 for well facilities. Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session — proposed lease of a portion to Spokane GOVERNING LEGISLATION: SVMC 3.49.020(D). PREVIOUS COUNCIL ACTION TAKEN: Administrative report August 3, 2016; administrative report August 30, 2016; administrative report October 18, 2016; October 25, 2016 motion consideration to finalize and execute proposed lease to District. BACKGROUND: Soon after incorporation, Spokane Valley received Browns Park from Spokane County, along with the other parks in the City. Spokane County previously granted a 35 year lease to Water District 3's (the District) predecessor in interest, Washington Water Power, which expired in 2013. This well has been in continuous use at least since 1978. Staff for the City and District discussed the grant of either a permanent easement (requested by the District), or a renewal lease (offered by the City) to ensure continuation of the long-term relationship in Browns Park. The District stated that it needs to have a permanent easement for long-term security in the location of its well facilities. If the District chooses to move their well facilities to another location, they have advised the City that it would cost between $400,000 and $500,000. On October 4, 2016, the City received a letter from the District dated September 30, 2016, in which the District advised the City that the District was terminating its use of the well at Browns Park. On October 25, 2016, the Council passed a motion authorizing staff to finalize and execute a lease agreement with the District. Staff finalized the draft lease and forwarded it to the District on or about October 25, 2016. On November 1, 2016, Ty Wick, General Manager for the District, sent the City a letter advising that the District would only accept an easement, and was thus declining the lease proposed by the City. Consistent with the District's letter dated September 30, 2016, they have stopped use of the well, and will be removing some of the facilities from Browns Park and leaving other facilities, pursuant to the now -expired 35 year lease. It is unclear how long it will take to remove those facilities. Staff has requested that the small building be left intact in the event the City can make use of it. Staff believes that this is the final action on this matter. OPTIONS: NA. RECOMMENDED ACTION OR MOTION: NA. BUDGET/FINANCIAL IMPACTS: Unknown. STAFF CONTACT: Cary Driskell, City Attorney; Mike Stone, Park and Recreation Director. ATTACHMENTS: (1) Letter from Spokane County Water District No. 3 dated September 30, 2016; and (2) Letter from Spokane County Water District No. 3 dated November 1, 2016. SPOKANE COUNTY WATER DISTRICT No. 3 1225 N. Yardley Street • Spokane, Washington 99212-7001 Office: (509) 536-0121 • Facsimile: (509) 534-3760 September 30, 2016 Mr. Mark Calhoun, Acting City Manager Mr. Mike Stone, Parks and Recreation Director City of Spokane Valley 11707 E. Sprague Ave., Suite 106 Spokane Valley, WA 99206 RE: Brown's Park Water Well Dear Mr. Calhoun and Mr. Stone: Inasmuch as Spokane County Water District No. 3 ("District") has had no response whatsoever to its September 9, 2016 letter to the City Councilmembers, and the City removed the water well lease as a discussion item for its last council meeting, it appears that the City is not open at all to discussion of an easement for the Brown's Park water well. Accordingly, the District Commissioners have decided that, considering all of the factors in regard to the Brown's Park water well, it is best if the District terminates its use of that well. Based upon the angst the City appeared to have over an easement for the well and the City's desire to be able to terminate the use of the water well area in the future by requiring a lease rather than allowing an easement, it is felt to be the best for both the City and the District in the long run that the District's use of that water well be terminated. The well use has been terminated. In the near future, the District will remove the pump, portable equipment and trade fixtures and cap the well. Please contact us to discuss the date for the termination of the irrigation and restroom water service for the park. The District will continue to work with the City on the establishment of new services for Brown's Park. The new service for the splash pad has been ordered and paid for. New services will need to be set up for the additional water service to the park. If you have any questions or need additional information, please contact me at 536-0121. Sincerely, Ty Wick General Manager cc: Michael D. Terrell Rod Higgins Cary P. Driskell Joseph G. Carroll SPOKANE COUNTY WATER DISTRICT No. 3 1225 N. Yardley Street • Spokane, Washington 99212-7001 Office: (509) 536-0121 • Facsimile: (509) 534-3760 November 1, 2016 Mr. Cary P. Driskell, City Attorney City of Spokane Valley 11707 E. Sprague Ave., Suite 103 Spokane Valley, WA 99206 RE: Proposed Lease for Brown's Park Water Well Dear Mr. Driskell: I wish to thank you for preparing and transmitting the proposed lease for use of a portion of Browns Park for well purposes. However, as I stated at our first meeting on May 24, 2016 regarding this issue, the District is only interested in an easement for use of this well. Accordingly, the District Commissioners have decided to decline the execution of this proposed lease agreement and considering all of the factors in regard to the Brown's Park water well, it is best if the District terminates its use of that well in conformance with our letter to the COSV dated September 30, 2016. The District will continue to work with the City on the establishment of new service(s) for Brown's Park. Sincerely, Ty Wick General Manager c: Joe Carroll Mark Calhoun City Council Mike Stone