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2020, 06-02 Study SessionAGENDA SPOKANE VALLEY CITY COUNCIL STUDY SESSION FORMAT Tuesday, June 2, 2020 6:00 p.m. CITY HALL COUNCIL CHAMBERS 10210 E Sprague Avenue (Please Silence Your Cell Phones During the Meeting) NOTE: In response to Governor Inslee's March 24, 2020 Proclamation concerning our recent State of Emergency, which waives and suspends the requirement to hold in -person meetings and provides options for the public to attend remotely, all meeting guidelines contained in the Governance Manual are hereby superseded until the Governor's order has been rescinded or amended. Therefore, effective immediately and until further notice, a live feed of the meeting will be available on our website and on Comcast channel 14. Public comments will be accepted via the following links and must be received by 4:00 pm the day of the meeting. • Join the Zoom Meeting CALL TO ORDER ROLL CALL APPROVAL OF AGENDA NON -ACTION ITEMS: DISCUSSION LEADER SUBJECT/ACTIVITY GOAL 1. Jenny Nickerson, COVID-19 Phase 2 Restaurant Operations Mike Basinger 2. Chelsie Taylor COVID-19 Revenue Estimates Update 3. Chris Bainbridge, Governance Manual Revisions Cary Driskell 4. Mike Basinger Community Development Block Grant Interlocal Agreement 5. Mayor Wick Discussion/Information Discussion/Information Discussion/Information Discussion/Information Advance Agenda Discussion/Information 6. Information Only (will not be reported or discussed): Finance Monthly Report 7. Mayor Wick 8. Mark Calhoun Council Check in Discussion/Information City Manager Comments Discussion/Information 9. Executive Session: Potential Land Acquisition; Pending Litigation [RCW 42.30.110(1)(b) and (i)] ADJOURN Study Session Agenda June 2, 2020 Page 1 of 1 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: June 2, 2020 Check all that apply: ❑ consent ❑ old business ❑ information ® admin. report Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: COVID-19 Phase 2 Restaurant Operations GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: May 12, 2020: Council asked staff to review the City Code to see if something could be done to add flexibility for the next phases of opening restaurants and other businesses, including use of sidewalks, parking lots, and/or tents. BACKGROUND: City of Spokane Valley businesses, particularly restaurants, have been greatly impacted by the COVID-19 outbreak and business owners are continuing to face challenges as they adapt their business model to correspond to the Phase 2 reopening plan for Spokane County. In an effort to address potential obstacles and eliminate restrictions so that business owners and their employees may more easily serve their customers, City Council requested staff to review possible options to add flexibility for businesses seeking to open during Phase 2. Staff have identified a number of options for City Council consideration. Below is a summary of applicable SVMC regulations, more information and potential options will be discussed in the presentation. SVMC Title 22.50 — Parking: City Manager or designee may approve reduction of up to 25% of the required number of stalls when the applicant makes a written request demonstrating site conditions that prohibit compliance with the required parking spaces for specific uses. Under Phase 2, restaurants (and retail uses) are restricted to half of the normal occupant load of the space. To maintain prescribed distancing, most dining areas will actually be limited to 30% to 40% of their normal capacity. By allowing outdoor seating or temporary tents to occupy parking areas, restauranteurs will have the opportunity to serve more customers. SVMC regulations dictate 1 parking stall for each 250 sf of restaurant, 1 stall for each 1000 sf of brewery/winery, and 1 stall for each 350 sf of retail use. Further, access and maneuvering for emergency vehicles and ADA parking must be maintained. City of Spokane Valley regulations require that vehicle parking and maneuvering be accommodated for on -site without encroaching into the public right-of-way and therefore businesses have the opportunity to utilize the parking and sidewalk areas on their private property without the need for special approval for the use of a right-of-way (public sidewalk or street). In the event that the use of a public sidewalk or street is desired, a business owner may request permission through a Special Event Permit. Similarly, the City of Spokane Valley does not require a Building Permit for the placement of a temporary tent but a Spokane Valley Fire Department Tent Permit would be required to ensure that the proposed tent is of an appropriately fire-resistant material and placed so as not to obstruct emergency vehicle access. SVMC Title 24 — Building Codes: Per the 2015 International Building Code as adopted by Washington State, a building or space may be used for a less hazardous purpose without requiring a change of occupancy. It is generally the duty of the Building Official to determine the occupancy classification; retail uses are commonly classified as Group M (mercantile) and restaurant uses are commonly classified as Group A-2 (assembly of more than 49 persons where food/drink is served). Normally, a change from a restaurant to a retail use would require a permit to address tenant improvement modifications but some restauranteurs are currently finding success with retail -style sales of their specialty products or meals to -go. This limited change in operation would not normally include construction alterations and therefore no building permit should be necessary. Spokane Regional Health District (SRHD) representatives confirmed that retail sales of normal menu items would not require a change/revision to a restaurant's food safety permit. SVMC Title 22.110 — Sign Regulations: staff will discuss the fact that, because curb -side or drive-in pick-up services are necessary for many restaurant (and retail) establishments to maintain income and encourage retention of regular customers, temporary signage may help generate business and a business owner may apply for a permit to place more than two temporary signs for "special events" such as a reopening or new service being provided during the COVID-19 event. Staff will also discuss the public involvement process to notify business owners of the code flexibility provided by the City. This will entail direct emails to holders of City endorsed business licenses, press releases, and social media. Recent Covid-19 related economic development initiatives will also be highlighted. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion; staff is seeking direction but no Council action is required. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Jenny Nickerson, Building Official Mike Basinger, Economic Development Manager ATTACHMENTS: PowerPoint presentation Spokane `~ Valley COVID-19 Phase 2 Restaurant Reopening Discussion of potential obstacles and opportunities Jenny Nickerson, Building Official PhacP 2 reopening - obstacles Reduced occupancy - • 40% or fewer seats to maintain prescribed distance ► Inconsistent opening hours for area businesses - ► inconsistent traffic patterns ► Customer confusion - ► what businesses are open? ► Evolving business climate - ► creativity is key! Phase 2 reopening - opportunities! SVMC Title 22.50 - Parking options SVMC 22.50.020 A 7 - The City Manager or designee may allow a reduction up to 25% of the required number of off-street parking stalls when applicant makes written request. SVMC 19.65.040 B 1 - Mobile food vendors shall obtain permission of the property owner to operate on the premises (no COSV permit required). Provide flexibility in required number of off-street parking spaces: ► Private property can be used for al fresco dining and queuing for curb -side pick-up ► Limited dining room capacity results in reduced customer traffic ► Requests for parking reduction should be directed to Permit Center ► In the City of Spokane Valley, a permit is not required for outdoor seating on private property - Special Event Permit is required for use of public sidewalk or right-of-way ► Obstructing fire access or ADA spaces remains prohibited ► Typical family restaurant requires 24 parking spaces (1 stall per 250 square feet) ► Encourage coordination with neighboring businesses - share parking areas during off - hours Phase 2 reopening - opportunities! SVMC Title 24 - Occupancy Classification ► Provide flexibility for restaurant -to -retail change of use/occupancy: Allows restaurants to promote retail sales of specialty products and take- out foods ► Crafted foods, spices, beverage mixes, salad dressing, and merchandise can help our local restaurant 'gems' recover while attracting new repeat customers i 1 ► Group M (mercantile) use is less intense than Group A (assembly) use per Building Code ► If construction is proposed, a building permit will cover review for safety standards Spokane Regional Health District (SRHD) review not required to replace order-in/dine-in with retail pick-up food service Phase 2 reopening -opportunities! SVMC Title 22110 - Sign Regulations SVMC 22.110.050 A - No more than two temporary signs are allowed at any one time. SVMC 22.110.050 C - Additional banners or temporary signs advertising a special event, sale, promotion, or opening of a new business allowed with temporary sign permit. SVMC 22.110.020 E £t G - The placement of signs within the public right-of-way or where obstructing visibility within any clearview triangle is prohibited. Provide flexibility for businesses to apply for temporary COVID-19 event signs: Sign regulations limit 2 temporary signs at any one time (permit exempt) Additional temporary signs allowed for special events of up to 60 days twice in a calendar year with a permit Phase 2 reopening (and future reopening phases) may be considered special events to allow for permits to be issued for special event temporary signs Temporary signs limited to 32 sf in area Directional signage of no more than 4 sf is allowed without a permit Public Involvement ► The Permit Center continued to accept permit applications, conduct reviews, issue permits, and perform inspections throughout the COVID-19 event. ► Thanks to our fluid permit process and Permit Center staff's dedication to customer service, we were able to quickly adapt to the changes. Staff quickly configured new permit options in the online permit portal and also offered the option for customers to email or mail in permit documents for processing. ► Sign permits, including those for temporary special event signs can be applied for and issued through the permit portal. ► Permit Center staff stay up-to-date by checking agency websites for COVID-19 information. We also provide links to assist agencies in staying up to date with COSV operations! Reached out to SVFD to provide link for COSV business inquiries related to occupant load calculation ► Coordination with SRHD to ensure that we refer businesses appropriately ► Many of the topics discussed in this presentation can also assist retail uses! ► 315 food establishments and 866 retailers operate in the City of Spokane Valley (based on business license records) 6 Economic Development Division COVID 19 ► Developed new webpages dedicated to COVID related updates ► Communicates to citizens and businesses current local, regional, state and federal information ► Provides links to the Spokane Regional Health District, Washington State Department of Health, Centers for Disease Control, and Spokane County Resource Map ► This page logged over 5,500 site visits in the first 5 weeks, 11.5% of total site visits in that time Disseminated information through website, Facebook, Twitter, Linkedln and Instagram, email, and press releases Community and Pobgt. works. Public tnioenatton •corona runs Restaurant Takeout 6 Delivery Options Conum pity Services &Activities TM u, of Spokane val.y is monnorrnE ma rarnnsvvut aOvID ill far. ems is Daily updates v.p. m t rr� o reJ u,,J necessary slaps aFe taken to promote the safety olcrestrRents and employees. n addit.on to sharieg inriIon co At, m Greater Spokane Eergency webstte, the city is utilizing Facebook and Twiner La prowdeupd updated inlormatiun. Management tr SRokanefoudRespotse.ory City of Spokane Valley COVID Resource Guide 000 ' LOCAL AGENCIES PROYIUING SNAIL ROSINESS RESOURCES Economic Development Division COVID 19 ► Key pages created: ► City impacts - Up-to-date information on the status of city services Business resources - Guidelines, financial support, employment assistance, PPE locator ► Restaurants - A list of Spokane Valley restaurants offering take-out and delivery and interactive map ► Community services Et activities - Links to area services and things to do ► Instituted digital marketing campaign to city residents promoting and supporting local restaurants featuring the hashtag #OrderUpSpokaneValley Over 300 likes, 100 shares The ads resulted in 3,515 visits to the restaurant webpage March 22 and April 8 A poster indicating the current status of City owned facilities has been created and posted at various locations Economic Development Division COVID 19 ► Sent emails to 7,018 Spokane Valley businesses providing information on emergency federal and state grants/loans Over 40% of respondents opened the email and about 20% clicking on at least one resource link ► Additional significant dates involving COVID-19 updates include: ► March 31 - Staff working with a local vendor, produced a Facebook Live event for the Mayor. This video received over 1,200 views. ► April 3 - ► Posted Mayor Wick's video from Northwest Passages program ► Publicized the County's Telephone Town Hall Shared and updated extension of the stay home, stay healthy order ► April 29 - Sent email related to the enhanced online permit portal to 985 Spokane Valley construction companies and permit center customers ► Within the first 24 hours, 51% opened the email, about double the typical rate Economic Development Division COVID 19 COVID Phase 2 Initiative Post on our website ► Publicize on social media channels ► Email using business licensing database ► Media release ► Develop informational signage Any Questions? Thank you for your time! CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: June 2, 2020 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: COVID-19 Update on Revenue Estimates GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: The 2020 Budget was adopted by Council on November 12, 2019. BACKGROUND: Revenue estimates for 2020 were calculated during the budget development process and ultimately adopted by Council on November 12, 2019 as part of the 2020 Budget document. However, due to the COVID-19 Pandemic, these revenue estimates need to be revised downward to reflect the current economic situation. Beginning in late February and early March of 2020, Governor Inslee began issuing a series of Emergency Declarations and Proclamations in response to the COVID-19 Pandemic, to limit group gatherings such as sports events and concerts, limit exposure, and to attempt to slow and stem the spread of the COVID-19. The Governor's "Stay Home, Stay Healthy" proclamation on March 24, 2020 required non -essential businesses to cease operations except through remote means. At this time, it is still too early to determine the full impact from the COVID-19 Pandemic on City revenues. However, staff believes that the COVID-19 Pandemic and the various limitations placed on gatherings and businesses by the Governor are and will continue to have a significant negative effect on the local economy, which will certainly decrease the City's tax and fee revenue collections in 2020. Based upon recommendations from various financial groups, including the Government Finance Officers Association (GFOA), the Municipal Research Services Center (MRSC), and various public accounting firms, staff began to reevaluate revenue collections based on shortfalls that were experienced by the City during the Great Recession from 2008 to 2010. This analysis began with compiling revenue collection history back to the City's incorporation in 2003 through 2019 by major revenue source. Sales Taxes Sales tax revenues include general sales tax, public safety sales tax, and criminal justice sales tax, and these revenues are accounted for in the General Fund. Sales tax revenues decreased by about 18% from 2007 to 2010. However, with the higher volume of shutdowns and unemployment being experienced in 2020, staff used 20% as a conservative estimate for a decrease in sales tax revenues. The estimated decrease was calculated by taking the 2019 actual collections and reducing them by 20% for total estimated sales tax collections of $21,906,000 in 2020. This is about $6 million less than the $27,847,800 that is currently included in the 2020 Budget. Community and Public Works Fees Fees collected by the Community and Public Works Department include things such as building permits, right-of-way permits, and plan review fees, and these revenues are accounted for in the General Fund. These fees decreased by about 40% from 2007 to 2010, which seemed a reasonable starting place for estimating current expected shortfalls. The estimated decrease was calculated by taking the 2019 actual collections and reducing them by 40% for a total estimated fee revenue of $1,910,000 in 2020. This is about $220,000 less than the $2,129,800 that is currently included in the 2020 Budget. Parks and Recreation Revenues Fees collected by the Parks and Recreation Department include things such as recreation program fees, park rental fees, and rental of space at CenterPlace, and these revenues are accounted for in the General Fund. Staff deemed it more accurate to estimate the shortfall in these fees by looking at monthly revenue fluctuations throughout an average year and make an estimate based upon which season activities were likely to take place during 2020. According to Parks and Recreation staff, discussions are still ongoing as to the feasibility and timing of Parks programs. This being the case, current revenue estimates only include what has been collected through March 2020, and assume no further activities during the year realizing that these revenues will need to be reevaluated as decisions are made on programs for the year. This brings estimated fee revenues to $115,000 in 2020, which is about $544,000 less than the $659,200 that is currently included in the 2020 Budget. Gambling Taxes Gambling taxes are accounted for in the General Fund. Gambling tax collections fell by about 23% from 2007 to 2010. Staff estimated 2020 tax collections by breaking out estimated activity by quarter using 2019 collections as a starting point. First quarter collections were estimated at near 2019 actual levels, second quarter was estimated to be zero, and third and fourth quarters were estimated at a decrease of 20% from 2019 actual collections. Using this method, estimated gambling taxes in 2020 are $276,000 which is $90,000 less than the $366,000 currently included in the 2020 Budget. Motor Vehicle Fuel Taxes and Multimodal Transportation Funds Motor vehicle fuel taxes (MVFT) and multimodal transportation funds are revenues passed through from the State, and they are accounted for in the Street Fund #101. MVFT decreased by about 12% from 2007 to 2010. However, with the high level of restrictions on travel with the COVID-19 Pandemic, staff used 15% as a conservative estimate for a decrease in these revenues. The estimated decrease was calculated by taking the 2019 actual collections and reducing them by 15% for total estimated MVFT collections of $1.7 million and multimodal transportation funds of $113,000 in 2020. This is about $350,000 less than the collective $2,178,200 that is currently included in the 2020 Budget. Lodging Taxes The City's 2% lodging tax is accounted for in the Hotel/Motel Tax Fund #105 and the 1.3% tax is accounted for in the Hotel/Motel — Tax Tourism Facilities Fund #104. Lodging tax revenues saw minimal impacts from the Great Recession; however, the COVID-19 Pandemic is particularly impacting the hospitality industry due to restrictions on travel and group gatherings. This being the case, staff spoke with a representative from a local hotel and estimated revenues by comparing monthly amounts to 2019 actual collections. Staff estimated minimal collections in April and May with a gradual increase through the balance of the year under the assumption that travel restrictions would begin to be lifted and people would be more willing to travel over time. The estimated 2020 collections are $346,000 for the 2% tax in Fund #105 and $213,000 for the 1.3% tax in Fund #104. These amounts are collectively $511,000 less than the $1,070,000 currently included in the 2020 Budget. Real Estate Excise Taxes Real estate excise taxes (REET) collections are accounted for in the REET Capital Project Funds #301 and #302. REET collections decreased by about 63% from 2007 to 2010, which seemed a reasonable starting estimate for analysis of current expected shortfalls. The estimated decrease was calculated by taking the 2019 actual collections and reducing them by 63% for a total estimated tax revenues of $1.3 million in 2020 with half in Fund #301 and half in Fund #302. This is about $746,000 less than the collective $2 million that is currently included in the 2020 Budget. Summary Collectively, staff are estimating revenue collections of $8.4 million less than what is currently included in the 2020 Budget. These reductions primarily come from sales taxes, which are estimated to come in at about $6 million less than the 2020 Budget. General Fund #001 Sales Taxes CPW Fees P&R Revenues Gambling Taxes Total General Fund Street Fund #101 Motor Vehicle Fuel Tax Multimodal Transportation Total Street Fund 2020 2020 Difference Revised Adopted Estimate Budget $ % 21,906,000 27,847,800 (5,941,800) 1,910,000 2,129,800 (219,800) 115,000 659,200 (544,200) 276,000 366,000 (90,000) - 21.34% - 10.32% - 82.55% - 24.59% 24,207,000 31,002,800 (6,795,800) -21.92% 1,715,000 2,046,700 (331,700) -16.21 % 113,000 131,500 (18,500) -14.07% 1,828,000 2,178,200 (350,200) -16.08% Hotel/Motel Tax Funds #104 and #105 2% Lodging Tax 1.3% Loding Tax Total Street Fund REET Funds #301 and #302 REET 1 REET 2 346,000 650,000 (304,000) -46.77% 213,000 420,000 (207,000) -49.29% 559,000 1,070,000 (511,000) -47.76% 627,000 1,000,000 (373,000) -37.30% 627,000 1,000,000 (373,000) -37.30% Total Street Fund 1,254,000 2,000,000 (746,000)-37.30% Total Estimated Losses 27,848,000 36,251,000 (8,403,000) -23.18% These revenue estimates are preliminary and are, at this point, not based on actual impacts seen in 2020. Staff expects to start seeing the actual impacts on revenue for April 2020 activity starting in June or July. City staff will continue to monitor revenues for changes and will adjust these estimates accordingly as more information becomes available. OPTIONS: None, as this report is just for discussion. Further discussion regarding impacts to the 2020 and 2021 Budgets will occur at the Budget Workshop on August 4, 2020. RECOMMENDED ACTION OR MOTION: N/A BUDGET/FINANCIAL IMPACTS: Revenue impacts from the COVID-19 Pandemic are currently estimated at a decrease of $8.4 million from the adopted 2020 Budget. Staff will continue to monitor and update these estimates for the August 4, 2020 Budget Workshop and a future 2020 Budget amendment. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: None CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: June 2, 2020 Department Director Approval: ❑ Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Governance Manual PREVIOUS COUNCIL ACTION TAKEN: The Governance Manual Committee consists of Councilmember Rod Higgins, Councilmember Tim Hattenburg, Councilmember Linda Thompson, City Manager Mark Calhoun, City Attorney Cary Driskell, and City Clerk Chris Bainbridge. The committee met in March and May and discussed and reviewed proposed changes to the manual. BACKGROUND: As a result of the committee meetings, the following changes have been proposed for discussion: Introduction: page 4 - minor edits Executive Summary: page 5; rewording edits on page 6 to make tense consistent; removed unnecessary bullet points, or to make sentence more clear; and removed items addressed elsewhere. Chapter 1: Page 3 — clarified process for adding something to an agenda while in the Council meeting Page 9 — public comments section moved to Meeting Rules and Procedure Page 14 — clarified that the only employee this pertains to is the position of city manager Page 15-16 — added new sections clarifying when it is necessary to call a special meeting Page 17-18 — this is where the previously moved `public comments' section was moved to; divided into sections for verbal comments, written comments, and electronic comments. Page 19-20 — added new section to address remote council meetings Page 21 — clarified process to add new items to the advance agenda Page 25 — added sentence about abstentions (not to be confused with recusals) Chapter 2: Page 34 — clarified there are no term limits for the office of Mayor or Deputy Mayor Page 37 — clarified process for council travel allocation Page 38 — edits concerning allowable travel expense with note about tips Page 38 — identified some personal toiletry articles not reimbursable as travel expense Page 39 — corrected conflicting statement concerning expense reimbursement report and when it is due Chapter 3: Minor edits Chapter 4: Page 46 — clarified section if Appendix B: Core Beliefs Although not a part of this revision, the idea was mentioned of Council working on having an updated core beliefs resolution at some time in the future (last updated 2007). Appendix C: Statement of Ethics: Added state statute citation for not accepting gifts or gratuities Appendix D: Acronyms: Added COVID-19 Other proposed changes include minor edits such as re -wording for clarity, numbering corrections, etc. All suggested changes are shown in red -line format. OPTIONS Discussion, and possible consensus to move some, all or none of these changes forward via a Resolution to amend the Governance Manual, with or without further amendments, including adding any new material; or postpone to a future meeting. RECOMMENDED ACTION OR MOTION: Council discretion BUDGET/FINANCIAL IMPACTS: n/a STAFF/COUNCIL CONTACT: City Clerk Chris Bainbridge; City Attorney Cary Driskell; City Manager Mark Calhoun; Councilmembers Hattenburg, Higgins and Thompson ATTACHMENTS Governance Manual Proposed Changes (redline format) Sifokane jUalley Governance Manual Adopted by Resolution A Comprehensive Collection of Rules and Procedures Adopted December 18, 2018 Resolution 03-028 adopted 05-13-2003, replaced by Resolution 04-013 adopted 05-25-2004, replaced by Resolution 05-021 adopted 09-13-2005, replaced by Resolution 06-022 adopted 11-14-2006, replaced by Resolution 07-020 adopted 12-11-2007, replaced by Resolution 09-012 adopted 09-08-2009, replaced by Resolution 10-020 adopted 12-28-2010, replaced by Resolution 12-002 adopted 04-10-2012, replaced by Resolution 13-005 adopted 04-23-2013, replaced by Resolution 14-003 adopted 02-25-2014, replaced by Resolution 15-007 adopted 08-11-2015, replaced by Resolution 16-012 adopted 11-01-2016, replaced by Resolution 18-008 adopted 11-13-2018, replaced by Resolution 18-011 adopted 12-18-2018, replaced by Re solution Page 1 of 68 TABLE OF CONTENTS Introduction 4 Executive Summary 5 CHAPTER 1: Council Meetings 8 A. General 9 1. Time and Location 9 2. Open to the Public 9 3. Presiding Officer 9 B. Meetings 10 1. Regular Meetings 10 a. Formal Format 10 b. Study Session Format 12 c. Executive Sessions 14 2. Special Meeting 15 3. Emergency Meetings 16 4. Pre -Agenda Meeting 16 5. Cancellation of Meetings 16 C. Meeting Rules and Procedures 17 1. Council Rules of Order 17 2. Quorum . 17 3. Seating Arrangement 17 4. Attendance 17 5. Respect and Decorum 18 6. Dissents and Protests 18 7. Councilmember Meeting Remote Participation by Telephone/Video Conference 18 8. Internet Use, Texting 18 9. Adjournment Due to Emergency or Disruption 19 10. Permission Required to Address the Council . 19 11. Approaching the Dais 19 12. Out of Order (sequence) Requests .. 19 13. Photographs, etc. Requiring Artificial Illumination Prior Permission Required 19 14. Placing Items on an Agenda 20 15. Motions and Discussion 20 Table of Parliamentary Procedure at a Glance 22 16. Voting 23 17. Recusal from Discussion and Consideration 23 18. Ordinances 24 19. Resolutions 25 20. Community Recognition Program 26 21. Proclamations 26 22. Taxes: Increasing or imposing new taxes 27 23. Hearings 27 24. Reconsideration 28 25. Council Materials/packets . 29 26. Three Touch Principle 29 CHAPTER 2: Legislative Processes and Procedures 31 A. Election of Council Officers 32 B. Filling Council Vacancies . 33 C. Legislative Agendas 35 D. Council Travel Allocation 35 Page 2 of 68 E. Council Expense Reimbursement Policy 35 F. Ballot Measures .... 37 CHAPTER 3: Council Contacts 39 A. Citizen Contacts and Interactions 40 1. Mayor/Council Correspondence 40 2. Citizen Concerns, Complaints and Suggestions to Council 40 3. Administrative Complaints to Individual Councilmembers 40 4. Social Media 40 5. Donations 40 B. Staff Contacts and Interactions 41 1. Role of the City Manager 41 2. City staff Attendance at Meetings . 41 3. City Clerk — Minutes 41 4. Administrative Interference by Councilmembers 41 5. Informal Communications Encouraged 41 CHAPTER 4: Committees, Boards, Commissions 43 A. Regional 44 1. Committees 44 2. Council Relations with Boards, Commissions, Advisory Bodies 44 B. In-house 45 1. Standing Committees 45 a. Planning Commission 45 b. Lodging Tax Advisory Committee . 45 c. Finance Committee 46 d. Governance Manual Committee 46 e. Agenda Committee 46 C. Private Committees, Boards, Commissions 47 Appendices: A. Public Hearings, Quasi -Judicial 48 B. Resolution 07-019 Core Beliefs 49 C. Statement of Ethics 51 D. Frequently Used Acronyms 52 E. Application for City Council Member 55 F. Request to Transfer Travel Allocation from One Councilmember to Another 59 G. Definitions 60 Index 61 Endnotes 63 Page 3 of 68 INTRODUCTION In December 2002, prior to our City's official incorporation, then Mayor DeVleming appointed three members of Council to serve on an ad -hoc Governance Coordination Committee for the purpose of drafting Council Rules of Procedure, to serve as an aid to effective legislative and organizational harmony, and to provide procedural rules to conduct meetings efficiently, fairly, and uniformly. The end -product legislation of that Committee's four -month process was approved by Council at the May 13, 2003 Council meeting. That historic first manual also included Resolution 03-027, a General Policy Resolution of Core Beliefs, which was amended by Resolution 07-019, and which can be found in full in Appendix B on page 49. Not unlike other guidance manuals, this This Manual Chas undergone several changes since its inception, with. While some sections have remaininge4 static over the years, such as Council meeting time and location, and other sections havinge been modified to include Internet use, -filling Council vacancies, the use of social media, and the option for Councilmembers to view their packet electronically. Thise Manual is usually reviewed annually and at times amended to recognize additional topics or for clarification as the need arises. This Manual is designed to provide guidance for the City Council and is not intended to be an amendment or substitute for any state statutes, city ordinances, court decisions, or other authority. The rules and policies in this Mtrranual do not constitute land use regulations, official controls, public hearing rules or other substantive rules binding upon or to be used or relied upon by members of the public, and do not amend statutory or other regulatory requirements. Page 4 of 68 EXECUTIVE SUMMARY FOUNDATION: The City of Spokane Valley incorporated March 31, 2003, and is a non -charter code city operating under a Council -Manager plan of government as outlined in chapter 35A.13 RCW Optional Municipal Code for Council -Manager plan of government. Under this form of government, there are two branches of government: legislative and administrative. PURPOSE OF CITY GOVERNMENT: The general purpose of local government is to promote the social, economic, environmental and cultural well-being of the community, to ensure that resources are used efficiently and effectively, to ensure transparency and accountability in decision -making, and to provide the prudent use and stewardship of local community resources. These statements should be considered the lens through which this Manual is intended and through which the actions of the City Council and staff are viewed. The City recognizes that individual rights are critically important in our society, and the City is committed to not infringe upon those rights whenever possible. Good governance should reflect the will of the citizenry and can only occur as a result of an open public process: "All political power is inherent in the people, and governments derive their just powers from the consent of the governed, and are established to protect and maintain individual rights." (Washington State Constitution Article I, Section 1) OBLIGATIONS: The City acknowledges the importance of complying with the Open Public Meetings Act and the Public Records Act: "The people of this state do not yield their sovereignty to the agencies which serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created." RCW 42.30.010 and 42.56.030. RCW 42.30.010 Open Public Meetings Act: "The legislature finds and declares that all public commissions, boards, councils, committees, subcommittees, departments, divisions, offices, and all other public agencies of this state and subdivisions thereof exist to aid in the conduct of the people's business. It is the intent of this chapter that their actions be taken openly and that their deliberations be conducted openly." Unless as part of an executive session, Councilmembers shall not meet as a quorum of four or more in a non-public meeting. Unless as part of a duly noted Council meeting, aA quorum of four or more Councilmembers shall knot meet as part of a web conference dealing with City business, nor a conference call, serial communication, social media or even a "straw poll" in executive session. The Open Public Meetings Act does not prohibit a quorum or more of Councilmembers meeting at social gatherings or events provided City issues are not discussed. If Councilmembers are involved in a violation of the Open Public Meetings Act, and are aware that their actions violate the Act, they may be personally liable. If the violation is not intentional, the City may still be liable for attorney's fees. However, elected officials' right to speak freely and gather publicly is protected by the First Amendment of the U.S. Constitution. RCW 42.56.030 Public Records Act: "This chapter shall be liberally construed and its exemptions narrowly construed to promote this public policy and to assure that the public interest will be fully protected. In the event of conflict between the provisions of this chapter and any other act, the provisions of this chapter shall govern." PRIORITIES: The City's pPriorities are public safety, pavement preservation, transportation and infrastructure, and economic development. Additional information on priorities and Council goals can be found in each year's budget, as well as the City's annual Business Plan. BASIC TENETS: Council's core values and basic tenets of governing can be found in Resolution 07-019, which is included in its entirety in Appendix B on page 49 of this Manual. BRANCHES OF CITY GOVERNMENT: The Council is the legislative branch of the City government. Council appoints an officer whose title shall be "city manager" and who shall be the chief executive officer and head of the administrative branch of the City government. "The City Page 5 of 68 Manager shall be responsible to the Council for the proper administration of all affairs of the code city." RCW 35A.13.010. Legislative Branch: City Council. The City Council consists of seven elected officials, each elected to four-year terms. Individual Councilmembers do not have governing power as individuals, but only when meeting as a Council when a quorum (four or more) are present. Council represents the City residents and business owners of the City of Spokane Valley, and is the law -making, policy -making, and budget and spending approval authority of the City government. Council hires, directs, guides and evaluates the performance of the City Manager. The City Manager shall be appointed for an indefinite term and may be removed by a majority vote of the Council (RCW 35A.13.130), or as otherwise agreed to by contract. For functions of the Mayor and Deputy Mayor, see also Chapter 3(B)(1) of this Manual. Some of the duties, responsibilities, and limitations of each Councilmember: • As a representative of City residents, Bbrings the experience, concerns and knowledge of a typical City resident to City government. • As an elected representative, Is cognizant of pays attention to the needs, wants and concerns of all City residents and businesses as a whole. • Contacts residents and businesses to gather feedback and ideas. The resulting information may be shared with staff or other Councilmembers individually, or with fewer than two simultaneously (but not serially), or with all Councilmembers at a Council meeting: • Studiesy internal and external written and documented information related to the government and administration of the City., including internal and external written information and information received from City employees. • Develop a collegial relationship with City employees, but aIs prohibited from void giving City employees directives, or saying anything that could be taken as an attempt to influence the conduct of the employee's job- • Gives feedback and ideas regarding City government and administration to the City Manager. • Work with one or two (more than three working together violates the Open Public Meetings Act) other Councilmembers on studying issues and/or sponsoring Resolutions and Ordinances. • Participates in assigned City and regional committees and all Council meetings, special and regular. • Make a motion (or second such motion) to amend an agenda or a motion. • When acting in the capacity of Councilmember outside of Council meetings, communicates that any personal opinion is the opinion of the individual Councilmember and not that of the collective Council, unless pre -authorized to speak, as Council does not want the public to assume that any individual personal opinion represents that of the entire Council. Councilmember's freedom of speech is protected by the U.S. and Washington State Constitutions.- Provided there is no quorum, Councilmembers may work together on City Council -related projects and discuss City business in non-public meetings. No permission is needed, nor is notice required to be given for such gathering. • Call a Special Meeting of the City Council. Pursuant to RCW 35A.12.110, "Special meetings may be called by the Mayor or any three members of the Council by written notice delivered to each member of the council at least twenty four hours before the time specified for the proposed meetings." However, if there is no quorum at a meeting, there is no meeting. Notice of Special Meetings should be distributed via the City Clerk. Administrative Branch: The City Manager and City Staff. The City Manager is the City's chief executive officer and head of the administrative branch. The City Manager is; an at -will position and; reports directly to the Council. All staff work under the direction of the City Manager, who is directed by the City Council. The City Manager is directly accountable to the City Council for the execution of the City Council's policy directives, and for the administration and management of all City departments, and for the supervision of all members of staff." (See page 11 Chapter Page 6 of 68 Ch. 3(B)(1) of this Governance Manual, and chapter 35A.13.RCW for a description of the role of the City Manager Authority.) Manual. Although this summary is provided as an quick and concise overview of the Governance Manual, reading of the entire Mmanual is strongly encouraged. The Table of Contents, as well as the Index is intended to be beneficial in locating desired topics of discussion. Page 7 of 68 CHAPTER 1 Council Meetings Page 8 of 68 1 1 1 A. General 1. Council Meetings - Time and Location Regular meetings of the City Council shall be held at Spokane Valley City Hall Council Chambers on Tuesdays beginning at 6:00 p.m. Pursuant to RCW 42.30.070: "If at any time any regular meeting falls on a holiday, such regular meeting shall be held on the next business day." As noted, in such case, the meeting held on the next business day after a holiday would also be a regular meeting, as opposed to a special meeting. The Council always has the option of cancelling such meeting. 2. Council Meetings - Open to the Public All meetings of the City Council and of committees thereof shall be open to the public except as provided for in RCW 42.30.110' (Executive Sessions), or RCW 42.30.1402 (Open Public Meetings Act). 3. Presiding Officer The Mayor shall preside at meetings of the Council and be recognized as the head of the City for all ceremonial purposes. The Mayor shall have no regular administrative or executive duties unless specifically set forth herein. In case of the Mayor's absence or temporary disability, the Deputy Mayor shall act as Mayor during the continuance of the absence. In case of the absence or temporary inability of the Mayor and Deputy Mayor, an acting Mayor Pro Tempore selected by majority vote of the remaining members of the Council, shall act as Mayor during the continuance of the absences [RCW 35A.13.0353]. The Mayor, Deputy Mayor (in the Mayor's absence) or Mayor Pro Tem are referred to as "Presiding Officer" from time to time in these Rules of Procedure. B. Meetings 1. Regular Meetings: Formal Format a. Formal Format a4. Normally held 2' and 4th Tuesdays. The City Clerk, under the direction of the City Manager in consultation with the Mayor, shall arrange a list of proposed matters according to the order of business and prepare an agenda for the Council. On or before close of business on a Friday preceding a Tuesday Council meeting, or at the close of business at least 24 hours preceding a special Council meeting, a copy of the agenda and supporting materials shall be prepared for Councilmembers, the City Manager, appropriate staff, and the media who have filed a notification request. b. Requests for presentations from outside entities or individuals to be placed on a future agenda, will only be permitted if they are considered the official business of the City. Such requests should be submitted to the City Clerk at least 10 days prior to the appropriate Council meeting. The City Clerk shall consult with the City Manager and the Mayor for a determination of whether the matter is an administrative issue, and whether it should be placed on an upcoming Council agenda. Playing of videos, DVD's, PowerPoints, or other electronic presentations shall be pre-screened and pre -approved by the City Manager who shall determine the appropriateness of the material. In the event the presenter has no PowerPoint or other material to submit prior to the meeting, the presenter shall be requested to provide a brief written summary of the topic and items to be discussed. All written materials, including the written summary, must be submitted to the City Clerk at least ten days prior to the appropriate Council meeting. c4. Forms of Address. The Mayor shall be addressed as "Mayor (surname)." The Deputy Mayor shall be addressed as "Deputy Mayor (surname)." Members of the Council shall be addressed as "Councilmember (surname)" unless waived by the Presiding Officer. d4. Order of Business. The business of all regular formal meetings of the Council shall be transacted as follows, provided, however, that the Presiding Officer may, during a Council meeting, rearrange items on Page 9 of 68 the agenda to conduct Council business more expeditiously, without the necessity of a formal action or motion. However, adding or removing items from the agenda once a meeting has been called to order requires Council to make a motion and vote on approving the "amended agenda." i. Call to Order by the Presiding Officer iih. Invocation iiie. Pledge of Allegiance ivd. Roll Call (See Chapter 1, C4b [page 17] for procedure to excuse an absence) ve. Approval of Agenda/Amended Agenda. In case of an emergency or an extremely time -sensitive issue which neither the administration nor the entire Council was aware of prior to the distribution of the agenda and accompanying materials, a new item may be introduced by a Councilmember, with concurrence of at least three other Councilmembers, or by the City Manager and suggested as an amended agenda item for the present meeting. If a new item(s) is added, Council shall then consider a motion to approve the amended agenda. ("Three -Touch Principle" should be followed whenever possible.) It is preferable that any motion to amend the agenda be made at the onset of the meeting in place of `Approval of Agenda,' recognizing that there will emergencies or other situations when such motion to amend the agenda might need to be made at other times during the meeting. vif. Introduction of Special Guests and Presentations. viig. Councilmember Reports. Council or government -related activities (e.g. synopsis of committee, commission, task force or other board meetings). These verbal reports are intended to be brief, City work -related reports of significance in keeping the Council informed of pertinent policy issues or events stemming from their representation of the City on a regional board, committee, task force or commission, whether as a formal or informal member. Extended reports shall be placed as future agenda items for presentation or submitted in writing as an informational memo. Mayor's Report. Same as gvii' above except given by the Mayor ix. Proclamation. The Mayor will announce the proclamation, announce who has requested this proclamation and after the Mayor or Councilmember reads the proclamation, invites that person or other appropriate person to the podium. The original proclamation will be handed to that appropriate person by the City Clerk or the Mayor, and the individual will be permitted to speak for one or two minutes. xj-. Public Hearings (See Chapter 4 for procedural details) xik. Consent Agenda �. Items which may be placed on the Consent Agenda are those which: (1) have been previously discussed by the Council; (2) can be reviewed by a Councilmember without further explanation; (3) are so routine, technical or nonsubstantive in nature that passage without discussion is likely; or are {4)-otherwise deemed in the best interest of the City. 2. The proper Council motion on the Consent Agenda is: "I move approval of the Consent Agenda." This motion has the effect of moving to approve all items on the Consent Agenda. Prior to the vote on the motion to approve the Consent Agenda, the Presiding Officer shall inquire if any Councilmember wishes an item to be withdrawn from the Consent Agenda. If any matter is withdrawn, the Presiding Officer shall place the item at an appropriate place on the agenda for the current or a future meeting, or the matter may be addressed immediately after passage of the remaining items on the Consent Agenda. xiiL. Unfinished Business [includes matters that were pending when a previous meeting adjourned, or matters specifically postponed to the present meeting] xiiim. New Business [Action items are designated as New Business] Any member of the public who wishes to verbally address the Council on an action item on the current agenda, shall proceed to the podium at the time when comments from the public are invited during the agenda item discussion. The Council may hear such comments before or after initial Council discussion. The Presiding Officer may also invoke a sign -in procedure. If necessary the Presiding Officer in consultation with the City Manager and/or City Attorney shall rule on the appropriateness of verbal public comments as the agenda item is reached. The Page 10 of 68 Presiding Officer may change the order of speakers so that comment is heard in the most logical groupings. xivi+. Public Comments. See Section "C Meeting Rules and Procedures -Maximum total time for 1. An opportunity for public comments on subjects not on the agenda for action. Speakers may sign in to speak, but it is not required. Speakers arc limited to three minutes each unless modified by the Presiding Officer; however .berg „fthe p,,b,l:c ghal be r hib ted f om al ocating . f their own speaking time, to other members of the public. This time is an opportunity to hear from various members of the public in a limited public forum, and not an opportunity for extended comments or dialogue. Although the City Council desires to allow the opportunity for public comment, the business of the City must proceed in an orderly, timely manner. At any time the Presiding Officer, in the Presiding Officer's sole discreti disruption or undue delay of other necessary business. a. Procedure for all public comments: 1. Verbal: Comments shall only be made from the podium microphone, first giving name, city of residence comments shall be subject to removal from the meeting. The public shall be reminded that this is not an opportunity for dialogue or questions and answers, but public comment. When appropriate, staff shall research issues and report back to those making the comment as well as to Council. Public members of Council and not the audience. In order to prevent disruption of the Council meeting, members of the public are asked to refrain from distributing materials to the audience, since Council meetings are not a public forum to address the audience. Since this is an opportunity for public comment, in the interest of time and keeping in mind all documents submitted during Council meetings become the property of the City, graphs, charts, posterboards, PowerPoint presentations, or other display materials are not permitted, although written comments and written materials including photographs and petitions may a. Demonstration, applause or other audience participation before, during or at the conclusion of anyone's public comments is prohibited. Any disruptive behavior, as determined by the Presiding Officer, shall be cause for removal from the meeting room. b. Any ruling by the Presiding Officer relative to these subsections on public comments may be overruled by a vote of a majority of Councilmembers present. c. Council shall not permit public comments if they relate to any matter upon which a quasi judicial hearing has been required, scheduled, or held. (See page 27 for procedure for taking public comment on legislative matters.) Unless solicited and scheduled, comments shall not be permitted relative to any future or possible/probable future ballot issue. (See page 37, Chapter 2, F Ballot Measures.) 2. Written. Citizens have the option of submitting written views, opinions, comments, data and arguments to Council on any topic and at any time, not just prior to or during public Council meetings. Unless the Mayor asks the Clerk to read written comments, or the citizen reads their own prepared written comments, such commen meetings although they shall be included as part of the public record on the topic and if appropriate, may be publicly acknowledged. Any written comments submitted to Council via the City Clerk shall cstation or City desk; or in such e mail has already been supplied to members of Council . If individual Councilmembers receive written (including electronic) public comments or materials for the purpose of reading/sharing those Council meeting so the Clerk can make copies for later distribution to members of Council. 3. Electronic: Councilmembers shall avoid accessing any electronic message during Council meetings. Accessing such communication could be construed as receiving public comment without the benefit of having the citizen in person to address their concerns to the entire Council at once. (See also page 18, C8 Internet Use) xve. Administrative Reports or tracking of an administrative issue or topic. xvip. Information Only Items These items are generally not discussed or reported. Page 11 of 68 xviift. City Manager Comments xviiif. Executive Session (as required) (See Chapter 1, section BIc below) xixs. Adjournment. No Council meeting should be permitted to continue beyond approximately 9:00 p.m. without approval of a majority of the Councilmembers present. A new time limit shall be established before taking a Council vote to extend the meeting. When a motion is made to adjourn into Executive Session for a specified period of time, and if the executive session is the last item on a regular agenda, no additional motion is needed to extend the meeting beyond 9:00 p.m. since that is implied as part of the motion to adjourn into Executive Session. In the event that a meeting has not been closed or continued by Council as herein specified, the items not acted on shall be deferred to the next regular Council meeting, unless the Council by a majority vote of members present determines otherwise. 2. Regular Meetings: —b. Study Session Format 1. Normally held 1st 3' and 5th Tuesdays. The purpose of the study session format is to allow Councilmembers to be made aware of impending business and allow informal discussion of issues that might be acted on at a future meeting. Action items should normally not be included on a study session agenda, although there 'will be times when due to deadlines or other pressing or time sensitive issues, action items must be included. Study sessions shall be in a less formal setting than regular formal meetings. Council may be seated other than at the dais, but shall not discourage public observation. Unless there are designated action items which permit public comment, there shall be no public comment at study sessions although the Council may request staff or other participation in the same manner as a regular formal Council meeting. The City Clerk, under the direction of the City Manager, shall arrange a Council study session agenda for the meeting. A copy of the agenda and accompanying background materials shall be prepared for Councilmembers, the City Manager, appropriate staff and the press, on or before close of business on a Friday preceding a Tuesday Council meetingl :30 p.m., one day before the meeting. Councilmembers have the option of accessing their Council packet via the City's website. Unless notified otherwise, the City Clerk shall prepare a hard copy agenda packet for individual Councilmembers. 2. Action Items. Although action items may occasionally be included on a study session agenda, it is the preference of Council to keep those instances to a minimum. Because a study session is a recognized meeting according to the "Open Public Meetings Act," it is permissible for Council to take final action during these meetings. As in the formal format meetings, public comment will be allowed on action items. 3. Unexpected Motions. = Because study sessions are usually understood by the public and media as referring to meetings at which Council considers and discusses items and does not take final action or vote, it could be misleading to the public as to the purpose of the meeting if a motion is made unexpectedly. As it is Council's practice to invite public comment after most motions, it would be inappropriate to make a "surprise" motion unless there is a rare special circumstance. Voting or making a motion when neither is included on an agenda does not violate state law, but for consistency sake and to avoid any surprises to the public and media, the practice is discouraged. 4. Presiding Officer's Role. The role of the Presiding Officer is to facilitate free flowing discussion without the necessity of each Councilmember being recognized by the Presiding Officer. The Presiding Officer retains the option of assuming the function of the discussion leader at any time in order to maintain decorum and ensure all Councilmembers have the opportunity to be heard, and to keep the discussion properly focused. 5. Outside Requests. Outside requests to be included on a Council agenda -will only be permitted if they are considered the official business of the City. Such requests should be submitted to the City Clerk at least 10 days prior to the appropriate Council meeting. The City Clerk shall consult with the City Manager and the Mayor for a determination of whether the matter is an administrative issue, and whether it should be placed on an upcoming Council agenda. Playing of videos-, DVD's, PowerPoints, or other electronic presentations shall be pre-screened and pre -approved by the City Manager or designee, who shall determine the Page 12 of 68 appropriateness of the material. In the event the presenter has no PowerPoint or other material to submit prior to the meeting, the presenter shall be requested to provide a brief written summary of the topic and items to be discussed. All written materials, including the written summary, shall be submitted to the City Clerk at least 10 days prior to the appropriate Council meeting. 6. Forms of Address. Councilmembers and staff have the option of addressing each other on a first name basis during the study session format meetings. 7. Order of Business. The business of all study session meetings of the Council shall be transacted as follows, provided, however, that the Presiding Officer may, during a Council meeting, rearrange items on the agenda to conduct Council business more expeditiously, without the necessity of a formal action or motion. However, adding or removing items from the agenda once a meeting has been called to order requires Council to make a motion and vote on approving the "amended agenda." a. Call to Order b. Roll Call. The City Clerk shall conduct a roll call of Councilmembers (See Chapter 1, C4 page 17 for procedure to excuse an absence.) c. Approval of Agenda/Amended Agenda. In case of an emergency or an extremely time -sensitive issue which neither the administration nor the entire Council was aware of prior to the distribution of the agenda and accompanying materials, a new item may be introduced by a Councilmember, with concurrence of at least three other Councilmembers, or by the City Manager and suggested as an amended agenda item for the present meeting. If a new item(s) is added, Council shall then consider a motion to approve the amended agenda. ("Three -Touch Principle" should be followed whenever possible.) It is preferable that a motion to amend the agenda be made at the onset of the meeting in place of `Approval of Agenda,' recognizing that there will emergencies or other situations when such motion to amend the agenda will be made at other times during the meeting. d. Presenter's Role. During the Council study session, the presenter should introduce the subject and give background information, identify the discussion goal, act as facilitator to keep the discussion focused toward the goal, and alert the Presiding Officer when it is appropriate, to schedule the topic for a motion or official direction of the Council. e. Advance Agenda f. Information Only Items These items are generally not discussed or reported. g. Council Check -in: The purpose of this item is to allow Councilmembers an opportunity to report on an activity or key issue which either just arose, needs immediate or imminent action, or to simply report on something ein connection with their role as a Councilmember, that transpired since the last Council meeting. It is also an opportunity for Councilmembers to bring up topics for clarification or to address other upcoming concerns. h. City Manager Comments: The purpose of this agenda item is to allow the City Manager the opportunity to brief Council on activities or issues which either just arose, needs immediate or imminent action, or to simply inform Council of items that transpired since the last Council meeting, or will occur before the next Council meeting. i Adjourn. No Council meeting should be permitted to continue beyond approximately 9:00 p.m. without approval of a majority of the Councilmembers present. A new time limit shall be established before taking a Council vote to extend the meeting. 2. Regular Meetings: —c. Executive Sessions 1. Executive sessions shall be held pursuant to the Open Public Meetings Act, chapter 42.30 RCW-. Council may hold an executive session during a regular or special meeting. Before convening in executive session, the Presiding Officer shall ask for a motion from Council to publicly announce the purpose for adjourning into executive session; when the executive session will be concluded; and the likelihood of Council taking action at the close of the executive session and return to open session. Page 13 of 68 a. At the close of the executive session and upon Council's return to chambers, the Presiding Officer declares Council out of executive session, and asks for the appropriate motion (i.e. an action motion or a motion to adjourn). b. To protect the best interests of the City, Councilmembers shall keep confidential all verbal and written information provided during executive sessions. Confidentiality also includes information provided to Councilmembers outside of executive sessions when the information is considered exempt from disclosure under the Code of Ethics for Municipal Officers (RCW 42.524) and/or the Public Records Act (RCW 42.565). 2. RCW 42.30.110 explains the purpose for holding an executive session, some of which include: a. RCW 42.30.110(1)(b). To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price (pending land acquisition). b. RCW 42.30.110(1)(g). To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. [The only employee subject to this evaluation is the position of City Manager.] However, subject to RCW 42.30.140(4) (labor negotiations), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public. [Note: stating that an executive session is to discuss a "personnel matter" is not sufficient because only certain types of personnel matters are appropriate for discussion in an executive session.] (review qualifications of a public employee) c. RCW 42.30.110(1)(h). To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public (review qualifications of an elected official). d. RCW 42.30.110(1)(i). To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. For purposes of this subsection (1)(i),—' "potential/pending litigation"—' means matters protected by Rules of Professional Conduct (RPC) 1.6 or RCW 5.60.060(2)(a) concerning: (1) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party; (2) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or (3) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency. 3. Council may adjourn into executive session even if it is not listed on the meeting agenda. There is a requirement in RCW 35A.12.1606 that the public be made aware of the preliminary agendas of meetings in advance of the meeting, but that does not mean that an item that arises after the agenda has been posted cannot be discussed at the meeting, even in executive session. Since final action on the matter would not be taken at the executive session, it would not violate any provision in state law to hold an executive session at a regular Council meeting even if the executive session was not listed on the agenda. —[MRSC Index -General Government -Executive sessions.] Although amending the agenda is not required in order to adjourn into executive session, it is a good practice for the Mayor to announce at the beginning of the meeting, that Council will be adjourning into an executive session at the end of the regular meeting. Page 14 of 68 4. Attendance at Executive Sessions. The City Attorney or Deputy City Attorney shall attend executive sessions which address litigation or potential litigation. The question of who may attend an executive session other than the Council, is determined by the City Manager. 23. Special Meetings a. Meetings set at days, times, and places other than Tuesdays at 6:00 p.m. in the Spokane Valley City Council Chambers shall be deemed "special meetings," such as joint meetings with other jurisdictions or entities (Board of County Commissioners, Planning Commissioners), and Council workshops or retreats. b. A special meeting may be called by the Mayor or any three members of the Council. (RCW 35A.13.1707, 35A.12.1108). Written notice of the special meeting shall be prepared by the City Clerk. The notice shall contain information about the meeting, including date, time, place, and business to be transacted and shall be posted on the City's website and displayed at the main entrance of the meeting location (RCW 42.30.080'). The notice shall be delivered to each member of Council at least 24 hours before the time specified for the proposed meeting (RCW 35A.12.11010). The noticing regarding such decision to hold a special meeting (made by the Mayor or any three Councilmembers), shall be handled by the City Clerk's Office through the City Manager. c. The notices provided in this section may be dispensed within the circumstances provided by RCW 42.30.080", that is: (a) As to any member who, at or prior to the time the meeting convenes, files with the City Clerk a written waiver of notice, (b) As to any member who was actually present at the meeting at the time it convenes, and (c) In the event a special meeting is called to deal with an emergency involving injury or damage to persons or property or the likelihood of such injury or damage, when time requirements of such notice would make notice impractical and increase the likelihood of such injury or damage; or as otherwise provided by law. d Agendas shall be drafted in a form submitted by the City Clerk, approved by the City Manager, and distributed in a manner similar to agendas for formal and study session meetings. The processes and rules for agenda content apply to regular formal, study session format, as well as special meetings. e. Special meeting agendas may include action and non -action items. It is the practice of Council to allow time for the public to comment on action items and the "public comment" should be so noted on the agenda. Once the Special Meeting Agenda has been published and distributed, the agenda may be amended provided the amended agenda is distributed to Councilmembers and to the media, and posted on the City's website and at the meeting doorway, at least 24 hours in advance of the special meeting. Final disposition shall not be taken on any other matter at such meeting, which means that the governing body may address other matters not identified in the special meeting notice or agenda, provided 'final disposition' regarding such matters is not taken(RCW 42.30.080(3)12) Council may not pass a franchise ordinance at a special meeting [RCW 35A.47.040]. f. There have been questions about whether it is necessary to call a special meeting in situations where Councilmembers are invited to attend a public meeting not called by the City as an official Council meeting, and whether it is legal for a quorum of Councilmembers to be present without violating the Open Meeting Act. According to the Washington State Attorney General Opinion 2006, No. 6, the "presence of a quorum of members of a city or county council does not, of itself, cause the Open Public Meetings Act to apply if councilmembers attend a public meeting called by a third party. The gathering of councilmembers would be a `meeting' for purposes of the Act only if the councilmembers take `action' as defined in the Act, such as voting, deliberating, or other official business of the council." g. There are times when several Councilmembers desire to attend a meeting of a City Department, such as a meeting scheduled by the City Engineers to discuss a construction project, or a meeting scheduled Page 15 of 68 through the Finance Department to hear a report from the State Auditors, or a meeting scheduled by the Parks & Recreation Department to discuss parks or other City business. Because these meetings can at times present questionable concern when it comes to the Open Public Meeting Act, Councilmembers who desire to attend such meetings shall notify the City staff at least two working days prior to the meeting, of their intent to attend, and only the first three Councilmembers who indicate they will be attending any particular meeting, may attend. This is necessary in order not to violate, or perceive to violate the Open Public Meetings Act. h. RCW 42.30.070 states in part: "It shall not be a violation of the requirements of this chapter for a majority of the members of a governing body to travel together or gather for purposes other than a regular or special meeting provided that they take no action as defined in this chapter." [MRSC Research News — Summer, 2016] A quorum of Councilmembers traveling together for a scheduled tour would not be in violation of the Open Public Meetings Act provided they do not discuss City business. However, comments and discussion as a result of the tour, shall be done at a regular Council meeting and not during the tour or outside of a regular or special Council meeting. 44. Emergencv Meetings: Emergency Council meetings may be called by the Mayor or any two Councilmembers, consistent with the provisions of chapter 42.30 RCW. Meeting time, location and notice requirements do not apply to emergency meetings called for emergency matters as permitted by RCW 42.30.070, 42.30.080, and 42.14.075: "If, by reason of fire, flood, earthquake, or other emergency, there is a need for expedited action by a governing body to meet the emergency, the presiding officer of the governing body may provide for a meeting site other than the regular meeting site and the notice requirement of this chapter shall be suspended during such emergency." [RCW 42.30.070] "The notices provided in this section may be dispensed with in the event a special meeting is called to deal with an emergency involving injury or damage to persons or property or the likelihood of such injury or damage, when time requirements of such notice would make notice impractical and increase the likelihood of such injury or damage." [RCW 42.30.080(4)] "Whenever, due to a natural disaster, an attack or an attack is imminent, it becomes imprudent, inexpedient or impossible to conduct the affairs of a political subdivision at a regular or usual place or places, the governing body of the political subdivision may meet at any place within or without the territorial limits of the political subdivision on the call of the presiding official or any two members of the governing body. After any emergency relocation, the affairs of political subdivisions -shall be lawfully conducted at such emergency temporary location or locations for the duration of the emergency." [RCW 42.14.075] 45. Pre -Agenda Meetin2s: The City Manager, City Clerk, Mayor and Deputy Mayor generally meet at a fixed weekly time to review -the Council agenda of the upcoming meeting, which gives all involved an opportunity to ask questions and gather any additional materials or research needed for the impending meeting. This meeting also serves as an opportune time to discuss the Advance Agenda, which is a planning document to aid in scheduling items on future Council agendas. (see also Agenda Committee under Chapter 4 internal committees) 65. Cancellation of Meetin2s: State law does not require any specific procedure for canceling an upcoming meeting, however, notice of the cancellation to the public, Councilmembers, and staff should be given by the Clerk in a similar manner that notice is given for a special meeting. The decision to cancel a meeting will be made by the City Manager in consultation with the Mayor and/or Agenda Committee and time permitting, will be noted on the Advance Agenda. -The noticing of such decision will be handled by the City Clerk through the City Manager. Upon cancellation of a formal meeting, either the study session immediately before such meeting or the study session immediately after such meeting, shall include an opportunity for general public comment. Page 16 of 68 1 C. Meeting Rules and Procedures 1. Public Comments This is an opportunity for public comments on subjects not on the agenda for action. Speakers may sign in to speak, but it is not required. Speakers are limited to three minutes each unless modified by the Presiding Officer; however, members of the public shall be prohibited from allocating any of their own speaking time, to other members of the public. This time is an opportunity to hear from various members of the public in a limited public forum, and not an opportunity for extended comments or dialogue. Although the City Council desires to allow the opportunity for public comment, the business of the City must proceed in an orderly, timely manner. At any time the Presiding Officer, in the Presiding Officer's sole discretion, may set such reasonable limits as are necessary to prevent disruption or undue delay of other necessary business. The desired total time for public comments shall not exceed 45 minutes; however, that time limit may change at the Mayor's discretion. a. Verbal Comments: i. Comments shall only be made from the podium microphone, first giving name, city of residence and subject. No comments shall be made from any other location, and anyone making "out of order" comments shall be subject to removal from the meeting. The public shall be reminded that this is not an opportunity for dialogue or questions and answers, but public comment. When appropriate, staff shall research issues and report back to those making the comment as well as to Council. Public comments are opportunities for speakers to briefly address Council, and those speaking are to address members of Council and not the audience. In order to prevent disruption of the Council meeting, members of the public are asked to refrain from distributing materials to the audience, since Council meetings are not a public forum to address the audience. Since this is an opportunity for public comment, in the interest of time and keeping in mind all documents submitted during Council meetings become the property of the City, graphs, charts, posterboards, PowerPoint presentations, or other display materials are not permitted, although written comments and written materials including photographs and petitions may be submitted to Council via the City Clerk. ii. Demonstration, applause or other audience participation before, during or at the conclusion of anyone's public comments is prohibited. Any disruptive conduct, as determined by the Presiding Officer, shall be cause for removal from the meeting room. Any ruling by the Presiding Officer relative to these subsections on public comments may be overruled by a vote of a majority of Councilmembers present. iii. Council shall not permit public comments if they relate to any matter upon which a quasi-judicial hearing has been required, scheduled, or held. (See page 27 for procedure for taking public comment on legislative matters.) Unless solicited and scheduled, comments shall not be permitted relative to any future or possible/probable future ballot issue. (See page 37, Chapter 2, F Ballot Measures.) iv. Disruptive public conduct: a. Conduct in any form that interferes with Council's ability to timely conduct the business of the City will not be allowed. If a situation arises where a speaker exceeds the three minutes (unless permitted to continue by the presiding officer), the City Clerk will turn off the microphone, and the Mayor will ask the speaker to please stop talking and step away from the podium. b. If the speaker continues after the first request, the Mayor will ask the speaker once again to stop talking, and will warn the speaker that failure to stop will result in a suspension of their privilege to speak at public comment for 90 days. If the speaker continues, the Mayor will gavel in a five-minute recess. c. Upon return from recess, public comment will start again with a caution from the Mayor that if any other speaker refuses to stop talking after being asked to do so after the three minutes, the remainder of the public comment for the night will be terminated. Page 17 of 68 d. If necessary in the discretion of the Presiding Officer, and in an attempt to reasonably calm a situation or resolve a conflict, the City Attorney or Deputy City Attorney shall act as a staff liaison with a member of the public who refuses to stop talking and refuses to move away from the podium. b. Written Comments: Citizens have the option of submitting written views, opinions, comments, data and arguments to Council on any topic and at any time, not just prior to or during public Council meetings. Unless the Mayor asks the Clerk to read written mailed or e-mailed comments, or the citizen reads their own prepared written comments, such comments shall not be read aloud during regular or special Council meetings although they shall be included as part of the public record on the topic and if appropriate, may be publicly acknowledged. Any written comments submitted to Council via the City Clerk shall be distributed to Council by placing copies at each Councilmember's workstation or City desk; or in the case of e-mailed or other electronic comments, shall be forwarded to Council via e-mail, unless such e-mail has already been supplied to members of Council. If individual Councilmembers receive written (including electronic) public comments or materials for the purpose of reading/sharing those materials during Council meetings, those materials should be submitted to the City Clerk prior to the Council meeting so the Clerk can make copies for later distribution to members of Council. c. Electronic Comments: Councilmembers shall avoid accessing any electronic message during Council meetings. Accessing such communication could be construed as receiving public comment without the benefit of having the citizen in person to address their concerns to the entire Council at once. (See also page 18, C8 Internet Use) 12. Council Rules of Order The City Clerk shall serve as the official parliamentarian for all Council meetings, and shall keep a copy of the most current "Robert's Rules of Order" (RONR) in Council Chambers during Council meetings. 23. Quorum At all regular and special meetings of the Council, a majority of the Councilmembers who hold office shall constitute a quorum for the transaction of business. A lesser number may adjourn from time to time, provided that written notice of said adjournment is posted on the exterior Council Chamber doors pursuant to RCW 42.30.09013. Council meetings adjourned under the previous provision shall be considered regular meetings for all purposes. (RCW 35A.13.17014, 35A.12.12015) 24. Seating Arrangement Councilmembers shall occupy the respective seats in the Council Chamber assigned to them by the Mayor. 45. Attendance a. Unexcused Absences: A Councilmember's responsibility to attend Council meetings should not be taken lightly, nor should a decision to remove a Councilmember for missing meetings. Pursuant to RCW 35A.12.06016 "a council position shall become vacant if the councilmember fails to attend three consecutive regular meetings of the council without being excused by the council." As soon as possible after two consecutive unexcused absences, and prior to a third consecutive unexcused absence, the absent Councilmember must request a leave of absence if they desire to remain on the Council. At a third consecutive meeting where a Councilmember is not excused and there has been no request for a leave of absence, the absent Councilmember's office shall be forfeited effective immediately. b Excused Absences: Members of Council may be excused from meetings with prior notification to the Mayor, City Clerk, or City Manager prior to the meeting, and by stating the reason for the inability to attend. Acceptable absencesexcuses for missing meetings may include death of a family member, family or personal illness, inclement weather, accident, scheduled vacations, family or personal emergency, City related business, or unusual or unforeseen circumstances. Following or prior to roll call, the Presiding Officer shall Page 18 of 68 inform the Council of the member's absence, and inquire if there is a motion to excuse the member. The motion shall be nondebatable. Upon passage of such motion by a majority of members present, the absent member shall be considered excused and the City Clerk shall make an appropriate notation in the minutes. c Leave of Absence: A Councilmember whose serious health or physical condition would prevent them from performing the duties of Councilmember may ask to be placed on a leave of absence under the following conditions: a) Such serious health or physical condition must be certified in writing by a medical physician. b) The request for a leave of absence shall be in writing, and hand -delivered or mailed to the Mayor, City Clerk, or City Manager at least one week prior to the date when such leave would commence. c) The request for a leave of absence must state the anticipated date the Councilmember will resume their duties. d) By majority vote of the whole Council, a leave of absence shall be granted as follows: 1) The absence shall not exceed 90 days from the date the motion is passed by Council 2) The absent Councilmember shall retain pay and medical benefits during the leave of absence 3) At the end of the 90-day leave of absence, the absent Councilmember shall either: a) Return to normal Council duties commencing with the first Tuesday following the end of the 90-day leave; or b) be subject to RCW 35A.12.060 concerning three consecutive absences, beginning with the first Tuesday following the end of the 90-day leave. de. A leave of absence may only be granted twice during a Councilmember's four-year term, with no less than six months between each request. Upon approval of a leave of absence, the absent Councilmember shall not be replaced with a pro-tem Councilmember during the absence. 56. Respect and Decorum It is the duty of the Mayor and each Councilmember to maintain dignity and respect for their offices, City staff and the public. While the Council is in session, Councilmembers shall preserve order and decorum and a Councilmember shall neither by conversation or otherwise, delay or interrupt the proceedings of the Council, nor disrupt or disparage any Councilmember while speaking. Councilmembers and the public shall comply with the directives of the Presiding Officer. —Any Councilmember making disruptive, disparaging or impertinent remarks, or unreasonably disturbing the business of the Council shall be asked to cease such disruption. Any other person attending a Council meeting who disrupts the meeting in such a fashion that the Council is impaired in its ability to attend to the business of the City, may be asked to leave, or be removed from the meeting. At any time during any Council meeting, any Councilmember may object to personal affront or other inappropriate comments, by calling for a "point of order." After the Councilmember is recognized by the Presiding Officer and the Councilmember explains their point concerning respect and decorum, or lack thereof, the Presiding Officer shall rule on the remark. If the person making the remark is a Councilmember, the Presiding Officer may ask the Councilmember to cease. If the person making the remark is a member of the public, the Presiding Officer shall determine if the remark is actually disruptive, and whether the remark has impaired the ability of the Council to attend to the business of the City. If so, the Presiding Officer shall seek the removal of that person from the meeting. Continued disruptions may result in a recess or adjournment as set forth in #9 below. 67. Dissents and Protests Any Councilmember shall have the right to express dissent from or protest verbally or in writing, against any motion, ordinance or resolution of the Council and have the reason therefore entered in the minutes. 7. Councilmember Meeting Remote Participation blTcl phon V deu Confcrc»�cc a. Remote Council Meetings In the event of unusual circumstances such as a pandemic or other health emergency where Council meetings would need to be held in such a manner as to protect the health and welfare of Council, staff and citizens, participation in such meetings shall be done remotely provided an option is available for the public to attend through internet or other electronic means. Council, staff and the public must be able to see and hear the meeting proceedings. At least a quorum of councilmembers must be able to participate. Page 19 of 68 b. Telephone or electronic Participation On occasion, a Councilmember may be unable to physically attend a meeting, but wish to attend via telephone conference call. Provided there is technical availability for the Councilmember to hear the proceedings, be heard by those present, and be able to participate in Council discussion, a Councilmember may request such participation. Requests to participate in a Council meeting via telephone conference call must be made at least one week in advance, and shall be approved by Council by motion. The Councilmember making the request, may also vote on the motion. More than one Councilmember may request participation via telephone for the same meeting, provided that those Councilmembers would be able to be reached at the same phone number, as the Council Chamber's current system can only accommodate the use of one telephone number per meeting; and provided that a quorum of Councilmembers would physically attend the meeting. Telephone/video confcrcncc participation by Councilmember, may be allowed provided that a quorum of Councilmembers shall be physically present for the Council meeting in question, and provided technical availability and compatibility of electronic equipment enables the conferencing Councilmember(s) to hear the proceedings, be heard by those present, and participate in Council discussion. More than one Councilmember may request participation via telephone for the same meeting, provided that those Councilmembers would be able to be reached at the same phone number, as the Council Chamber's current system can only accommodate the use of one telephone number per meeting. a. Requests to use telephone/video confcrcncc participation shall be approved by the Council by motion. Such participating Councilmember(,) shall be present and counted. So as not to disrupt the Council b. Telephone/video confcrcncc participation for voting purposes shall be allowed for public hearings or any quasi judicial proceedings, and the requesting Councilmember(s) shall declare that (s)he has reviewed the associated material (if any) provided for those hearings and/or proceedings prior to the time the vote will be taken by Council. 98. Internet Use Use of the City's network systems implies Council is aware of and understands that the system is provided to assist in the performance of their roles as Councilmembers, and as such, Councilmembers are obligated to use, conserve and protect electronic information and information technology resources and to preserve and enhance the integrity of those resources which belong to the citizens of Spokane Valley. a. As noted on page 11, Councilmembers shall avoid accessing any electronic message during Council meetings, whether by e-mail, text, or other means. Accessing such communication could be construed as receiving public comment without the benefit of having the citizen in person to address their concerns. Likewise, Councilmembers shall avoid browsing the Internet of non City business during Council meetings in order that Council's full attention can be given to the topic at hand. b. Information technology resources are provided for the purpose of conducting official City business. The use of any of the City's information technology resources for campaign or political use is -prohibited unless it has been determined by the City Attorney, Washington State Attorney General, or Washington Public Disclosure Commission, that such use is not a violation of RCW 42.17A.555" or is otherwise authorized by law. c. Confidential material shall not be sent via e-mail or text. d. All letters, memoranda, and interactive computer communication (e-mail, text, tweet, etc.) involving Councilmembers, the subject of which relates to the conduct of government or the performance of any governmental function, with specific exceptions stated in the Public Records Act (RCW 42.56) are public records. Copies of such letters, memoranda and interactive computer communication shall not be provided to the public or news media without the member of the public or news media filing a public record request with the City Clerk. With this in mind, texting and tweeting concerning City business is strongly discouraged. e. E-mail communications that are intended to be distributed among all Councilmembers, whether concurrently or serially, shall be considered in light of the Open Public Meetings Act. If the intended purpose of an e-mail is to have a discussion that should be held at an open meeting, the electronic discussion should not occur, and Council discussion should wait until everyone has had ample opportunity to view the message before including such topic(s) on an upcoming agenda. Page 20 of 68 101. Adjournment Due to Emergency or Disruption In the event of an emergency such as a fire or other natural or catastrophic disaster, threatened violence, or inability to regain or retain good order, the Presiding Officer shall forthwith declare a recess, adjourn, or continue the meeting, and the City Council as well as everyone in the room shall immediately leave the meeting room and if necessary, leave the building. The Presiding Officer may reconvene the meeting when it has been determined by the appropriate safety officials that it is safe to do so. 118. Permission Required to Address the Council Persons other than Councilmembers and staff shall be permitted to address the Council upon recognition and/or introduction by the Presiding Officer or City Manager. 121. Approaching the Dais by Members of the Public Once a Council meeting has been called to order, members of the public are prohibited from stepping between the speaker's podium and the dais, or stepping behind any part of the dais or stepping behind those sections adjacent to the dais. If citizens wish Council to receive materials, those materials should be handed to the City Clerk -prior to the meeting or during the public comment section of the agenda, ; and the Clerk will distribute the materials to members of Council. Council reserves the right to invite anyone forward to the podium to be addressed by Council. 132. Out of Order Requests Occasionally a member of the public may wish to speak on an agenda item but cannot remain until the item is reached on the agenda. During "Open Comments From the Public," such person may request permission to speak by explaining the circumstances. The Presiding Officer in his/her sole discretion shall rule on whether to allow the out of order request. Alternatively, the member of the public could also discuss their request with the Mayor prior to the meeting. 134. Photographs, Motion Pictures or Videos Requiring Artificial Illumination — Prior -Permission Required No overhead projection, photographs, motion pictures, or videos that require the use of floodlights, or similar artificial illumination shall be used by the public at City Council meetings without the prior consent of the Presiding Officer or the City Manager. 154. Placing Items on an Agenda: a. New Item Council Business: During the Advance Agenda portion of a council agenda, At the appropriate time during a Council meeting (such as Council Comments, or Advance Agenda), a Councilmember may request to have items placed on a future agenda. Each request shall be treated separately. The City Manager is most familiar with staffs workload and shall determine when the item can be prepared and brought forward to Council, unless the Council wants to discuss the item prior to staffs involvement. The following process shall be used to propose an item for a future Council meeting: 1) A Councilmember may propose an item and give a brief explanationory background of the issue and its importance to the City. 2) Councilmembers may ask clarifying questions-. 3) By a show of hands, a consensus of four or more Councilmembers may move the item forward to a future agenda. b. Except for routine items such as those found on most Consent Agendas, requests for items to come before Council shall be routed through the City Manager or come directly from the City Manager as part of the normal course of business. 165. Motions and Discussion a. Order of Procedure: 1. Member of Council makes a motion by stating: "I move .. ." Page 21 of 68 After the motion is seconded, staff makes their presentation, then the Mayor will ask Council if there are any questions of staff. Once all questions have been addressed, the staff member shall step away from the podium to allow for any public comment. Staff makes their presentation Mayor asks Council if there are any questions for staff Once all questions have been addressed, the staff member steps away from the podium to allow for the public comment opportunity. 2. The Mayor invites public comments. Public comments should be limited to one comment per person per topic and limited to three minutes. The Mayor reminds the public this is time for comments and not discussion; and if the public has questions, those questions shall be addressed by staff at another time outside the meeting. 3. The Mayor opens the floor to Council for discussion. The maker of the motion normally begins the discussion. The discussion must have bearing on whether the pending motion should be adopted (RONR §43); and can be prefaced by a few words of explanation, but must not become a speech (RONR §4). All Council remarks should be addressed through the Mayor. 4. When discussion has ended, the Mayor re -states the motion or asks the Clerk to re -state the motion. Once the motion is re -stated, the Mayor calls for the vote, which is normally taken by voice. The Mayor or the Clerk then states whether the motion passed or failed. b. In General: 1. Except in rare circumstances, Council motions shall be in the form of an affirmative motion. Affirmative motions are preferred to prevent "approval by default" of a failed negative motion. 2. Agenda items scheduled for Council action shall require a motion by a Councilmember before discussion unless by majority vote the Council suspends the requirement. If a motion fails, the agenda item shall be considered concluded. However, said item could be reconsidered if done during the same meeting, or through Council majority vote it could be brought back at a later meeting to ""rescind an action,"! or to " "amend something previously adopted."" (Mayoral appointments excepted. See Committees for further discussion.) 3. Councilmembers should direct questions to the City Manager or the designated presenter. 4. Main motions are made when no other motion is pending (see chart below). They are debatable and subject to amendment. Since seconding a motion means "let's discuss it," if there is no second but discussion ensues, the matter of having a second to proceed is moot and the motion can proceed. However, if there is no second and no discussion, the motion does not progress. Note that the motion does not "die for a lack of a second" but it merely does not progress. 5. —The maker of a motion can withdraw their motion with the approval of the majority of Councilmembers (see notes below table below). The person making the motion is entitled to speak first to the motion. A maker of the motion may vote against the motion but cannot speak against their own motion. 6. No one should be permitted to speak twice to the same issue until everyone else wishing to speak has spoken. All remarks shall be directed to the Presiding Officer and shall be courteous in language and deportment (Robert's Rules of Order Newly Revised, Article VII, Section 43, Decorum in Debate), keeping in mind it is not the Councilmember, but the measure that is the subject of debate. 7. When an amended motion is on the floor, the vote is taken on whether to adopt the amendment. If adopted, the next vote is on the fully amended motion. Page 22 of 68 8. Motions should be reserved for items marked on the agenda for action, so as to avoid any surprises for Council, staff and the public. Page 23 of 68 Parliamentary Procedure at a Glance Roberts Rules of Order § IF YOU WANT TO YOU SAY INTERRUPT NEED 2ND Can be Debated Can be Amended VOTE 11 Postpone indefinitely (the purpose is to prevent action or kill an issue.) I move to postpone ... . (an affirmative vote can be reconsidered; a negative vote cannot.) indefinitely No Yes Yes No Majority 12 Modify wording of motion I move to amend the motion by .. . No Yes Yes Yes** Majority 14 Postpone to a certain time Ex: I move to postpone the motion to the next Council meeting. No Yes Yes Yes Majority 16 Close debate I move the previous question, or I call for the question *** No Yes No No Majority* 17 To Table a motion I move to lay on the table, the motion to No Yes No No Majority 19 Complain about noise, room temperatures etc Point of Privilege Yes Yes Yes Yes Chair decision 20 Take break I move to recess for .. No Yes No Yes Majority 21 Adjourn meeting I move to adjourn No Yes No No Majority 23 Object to procedure or personal affront Point of Order Yes No No No Chair decision 25 Suspend rules I move to suspend the rules and .. . No Yes No No Majority* 34 Take matter from table I move to take from the table the motion to No Yes No No Majority 35 Reconsider something already disposed of I move we reconsider action on .. . No Yes Yes Yes Majority It should be noted that the purpose of tabling a motion is not to simply postpone an issue or a vote. If the intended purpose is to postpone, then the motion to postpone should be used. If more information is needed or desired in order to make the most informed vote possible, then an option would be for the maker of the motion to simply withdraw the motion. The consent of the seconder is not needed to withdraw a motion, however, withdrawal of a motion should be done with the approval of a majority of Councilmembers present [Mayor, I request permission to withdraw my motion. The Mayor asks if there is any objection, and if none, the motion is withdrawn. If there is objection, the Mayor will call for a vote.] While a motion is still on the table, no other motion on the same subject is in order. The motion to table enables the assembly to lay the pending question aside temporarily when something else of immediate urgency has arisen. The motion to "Lay on the Table" is out of order if the evident intent is to kill or avoid dealing with a measure. (Robert's Rules of Order Newly Revised, 10'h Edition) *(Robert's Rules of Order Newly Revised states 2/3 vote required. Council direction is to base vote on majority except on matters where 2/3 (or majority plus one) is required by state statute. * * If the main motion to amend can be amended. ***Call for the Question: if it is felt that debate on a motion on the floor has continued longer than warranted, a member of Council may-' "call the question."-' The-' "call for the question"" is a motion to end debate and vote immediately. If this -' "call for the question"" motion is passed by a majority vote, then the vote must be taken on the original debated motion on the floor. Page 24 of 68 167. Voting The votes during all meetings of the Council shall be transacted as follows: a. The Presiding Officer shall first call for a vote from those in favor of the motion, followed by a call for those opposed to the motion, and afterwards shall state whether the motion passed or failed. Unless otherwise provided by statute, ordinance, or resolution, all votes shall be taken by voice or a show of hands. At the request of any Councilmember or the City Clerk, a roll call vote shall be taken by the City Clerk. The order of the roll call vote shall be determined by the City Clerk. b. Unless otherwise provided by statute, ordinance, or resolution, in case of a tie vote on a motion, the motion shall be considered lost. c. Every member who was present when the question was called, shall give his/her vote. If any Councilmember refuses to vote "aye" or "nay," their vote shall be counted as a "nay" vote unless the Councilmember has recused themself due to actual or perceived appearance of a conflict of interest, which shall be so stated prior to the vote at hand. Abstentions are not permitted as abstentions are equivalent to not voting, and the members of the public expect their elected officials to vote on issues. d. The passage of any ordinance, grant or revocation of franchise or license, and any resolution for the payment of money, any approval of warrants, and any resolution for the removal of the City Manager shall require the affirmative vote of at least a majority of the whole membership of the Council (RCW 35A.12.12018). Except as provided in "e" below, all other motions or resolutions shall require an affirmative vote of at least a majority of the quorum present. e. Majority Plus One: The passage of any public emergency ordinance (an ordinance that takes effect immediately), expenditures for any calamity, violence of nature, riot, insurrection, or war; and provisions for a lesser emergency, such as a budget amendment (RCW 35A.33.09019), shall require the affirmative vote of at least a majority plus one of the whole membership of the Council. (RCW 35A.13.19020) 1g8. Recusal From Discussion and Consideration. Situations may arise when a Councilmember should consider whether to recuse themselves from the consideration and decision -making on a particular item. These situations can arise in various ways, including having an interest in a contract being considered by the City, or when a Councilmember has a bias in some fashion regarding an issue before the Council. For additional discussion and explanation, please see Appendix C — Spokane Valley Councilmembers' Statement of Ethics. The overarching goal of the conflict of interest laws is to prevent municipal officers from engaging in self -dealing. Seattle v. State, 100 Wn.2d 232, 246 (1983). [Self -dealing is defined as a situation in which a fiduciary acts in his own best interest in a transaction rather than in the best interest of his clients. A fiduciary is legally obligated to act in the best interest of his clients. A fiduciary is a person to whom property or power is entrusted for the benefit of another.] a. Prohibited acts. There are some conflicts which cannot be waived, and some actions in which Councilmembers shall not engage. RCW 42.23.070 prohibits municipal officers from: (1) Using "his or her position to secure special privileges or exemptions for himself, herself, or others." (2) Directly or indirectly giving or receiving or agreeing to receive "any compensation, gift, reward, or gratuity from a source except the employing municipality, for a matter connected with or related to the officer's services as such an officer unless otherwise provided for by law." (3) Accepting employment or engaging in business or professional activity that "the officer might reasonably expect would require or induce him or her by reason of his or her official position to disclose confidential information acquired by reason of his or her official position." (4) Disclosing confidential information "gained by reason of the officer's position, nor may the officer otherwise use such information for his or her personal gain or benefit." b. Conflict of interest contracts. In contractual matters, Councilmembers are required to avoid directly benefitting from contracts entered into by the City. When a Councilmember is aware that they may benefit from such a contractual relationship, they are required to recuse themselves. Other situations may arise where a Councilmember may indirectly benefit. In these circumstances, the determination of whether a conflict of Page 25 of 68 interest exists such that they should recuse themselves will have to be made by that Councilmember based on facts and circumstances known at the time. c. Bias for or against a proposed action. There will be situations for each Councilmember where, based upon their current or prior work or personal relationships, that Councilmember may not be able to participate in a discussion and decision on a given issue because they likely can't be objective. In such an event, the Councilmember must give due consideration to their potential to be predisposed, and whether they believe they can objectively consider and decide on the issue. If the answer is yes, then the Councilmember may proceed. If this self-analysis is difficult as to whether the Councilmember can be objective, but the determination is that they can, the Councilmember should strongly consider disclosing the nature of the potential bias to the Council, and then announce whether they believe they can or cannot proceed. If the Councilmember does not believe they can be reasonably objective, they should recuse themselves from the discussion and consideration. The purpose for recusal under such circumstances is that the Council wants the public to have the utmost confidence that decisions are made objectively, and that all citizens and businesses will be treated equally and fairly. d. Process and Disclosure: When a Councilmember determines recusal is appropriate, or when it is required by law, the Councilmember shall announce that they need to recuse themselves, explain the factual circumstances, then step off the dais and out of the Council chambers. A staff member will retrieve the Councilmember once that issue is finished being discussed. The determination of whether to recuse oneself from an issue, and then formally recusing, shall occur before any discussion has taken place on that issue to ensure that Councilmember does not participate in the matter in any fashion. e. The following is an example of appropriate language where recusal is warranted: Following careful analysis and consideration, I think it is appropriate for me to recuse myself from any discussion and decision on this matter. I have known the owners of * business for * years, am friends with them, and believe it would be most appropriate for me not to participate in this matter. As such, I will recuse myself and step out of the room. OR Following careful analysis and consideration, I think it is appropriate for me to recuse myself from any discussion and decision on this matter. I own a business that competes directly with the business at issue, and believe it would be most appropriate for me not to participate in this matter. As such, I will recuse myself and step out of the room. f. The following is an example of appropriate language where the Councilmember determines that he/she does not need to recuse themselves from the matter: Following careful analysis and consideration, I think it is appropriate for me to participate in the discussion and decision on this matter. Although I am somewhat familiar with this matter from my prior association with *, I believe I can be objective and unbiased. As such, I will not recuse myself, and will participate with the rest of the Council in the discussion and decision. 1879 Ordinances Except for unusual circumstances or emergencies, ordinances and resolutions shall customarily be prepared, introduced and proceed in accordance with the "Three Touch Principle." Prior to final passage of all ordinances or resolutions, such documents shall be designated as drafts. a. A Councilmember may, in open session, request of the Presiding Officer that the Council consider enacting an ordinance for a specific purpose. The Presiding Officer then may assign the proposed ordinance to the administration, a committee, or the Council for consideration. The committee or administration shall report its findings to the Council. The City Manager may propose the drafting of Page 26 of 68 ordinances (RCW 35A.1321). Citizens, Boards and Commissions may also propose consideration of ordinances and resolutions. b. Sponsorship. When a Councilmember wishes to assume sponsorship of an ordinance or resolution, once on the agenda, he or she should so announce, make the initial motion and provide an introduction of the measure. c. Ordinances shall normally have two separate readings at separate Council meetings. Unless waived by the City Council at each reading, the title of an ordinance shall be read by the City Clerk prior to its passage. However, if a Councilmember requests that the entire ordinance or certain sections be read, such request shall be granted. Printed copies shall be available upon request to any person attending a Council meeting. d. The provision requiring two separate readings of an ordinance may be waived at any meeting of the Council by a majority vote of all members present. {This would require a successful motion to suspend the rules and pass the ordinance on a first reading.) e. If a motion to pass an ordinance to a second reading fails, the ordinance shall be considered lost, unless a subsequent motion directs its revision and resubmission to a first reading. f. Any ordinance repealing any portion of the Spokane Valley Municipal Code shall also repeal the respective portions of the underlying ordinance(s). Ordinances repealing earlier ordinances shall not apply to acts, incidents, transactions or decisions occurring before such repeal. g. Council may not pass a franchise ordinance at a special meeting [RCW 35A.47.04022] h. The passage of any ordinance, grant or revocation of franchise or license shall require the affirmative vote of at least a majority of the whole membership of the Council. [RCW 35A.13.17023 i. The passage of any public emergency ordinance (an ordinance that takes effect immediately), expenditures for any calamity, violence of nature, riot, insurrection, or war; and provisions for a lesser emergency, such as a budget amendment (RCW 35A.33.09024), shall require the affirmative vote of at least a majority plus one of the whole membership of the Council. (RCW 35A.13.19025) j. Occasionally, an ordinance will be on an agenda the same night as a public hearing on the same topic, such as a public hearing on a budget, amended budget, proposed tax, or moratorium, and an ordinance approving that item. When that occurs, after the public hearing has been closed and Council moves to the ordinance action item, public comment shall not be taken on the ordinance since it was just taken as part of the public hearing process. Public comment will also not be taken during the ordinance's second reading at a subsequent Council meeting. This procedure will also be used if a public hearing on a specific issue is held before the Planning Commission; so that when the resulting ordinance comes before Council, public comment will not be taken on either the first or the second reading. 1204. Resolutions A resolution may be approved on the same day it is introduced. While it is not necessary to have the title of a resolution read aloud, Council may invoke the two reading procedures described above to facilitate public understanding and/or comment on the resolution. If Council invokes the two reading procedures, a Councilmember may request that the entire resolution or certain sections be read, and such request shall be granted and the City Clerk shall read as requested. Printed copies shall be made available upon request to any person attending a Council meeting. a. The passage of any resolution for the payment of money, any approval of warrants, and any resolution for the removal of the City Manager shall require the affirmative vote of at least a majority of the whole membership of the Council. b. Occasionally, a resolution will be on an agenda the same night as a public hearing on the same topic, such as a public hearing on an amended Transportation Improvement Program, and a Resolution approving that amendment. When that occurs, after the public hearing has been closed and Council moves to the resolution action item, public comment shall not be taken on the resolution since it was just taken as part of the public hearing process. This procedure will also be used if a public hearing on a specific issue is held before the Planning Commission, which would result in a resolution for Council consideration. Page 27 of 68 210. Community Recognition Program: a. In an effort to acknowledge outstanding citizens, businesses and organizations who have made a significant contribution, or have had or continue to have, a positive impact on the citizens of our community, the Council has implemented a Community Recognition Program. b. Eligibility: Must be a citizen/resident or an owner/operator of a business within Spokane Valley City limits. City of Spokane Valley elected officials, staff members and their relatives are not eligible for nomination, however, they may submit nominations. There is no limit to the number of nominations one may submit. c. Selection: will be made by the Mayor with confirmation by the Council. If selected, recognition will take place at a City Council meeting and depending upon the nature of the nomination, the honoree will be presented with a proclamation, certificate of appreciation, and/or a key to the City. d. Process: Nominations shall be submitted on a Community Recognition Form, addressed to the City Clerk, and may be made at any time. e. Selection of these recipient(s) will typically be held during a formal format Council meeting, under the Agenda Item of Introduction of Special Guests and Presentations. 221. Proclamations: a. Ceremonial proclamations not associated with the Community Recognition Program. 1. These proclamations are not statements of policy but are a means by which the City can recognize an event, group or individual. As part of the ceremonial duties of the Mayor, the Mayor is charged with approval of proclamations at his/her discretion; and reserves the right to decline any proclamation request as well as the right to make exceptions to these guidelines and procedures. Individual Councilmembers will not issue proclamations, and requests for a proclamation should be directed to the Mayor or the City Clerk. 2. Proclamations will be considered for approval which will proclaim certain events or causes when such proclamation positively impacts the community and conveys an affirmative message to Spokane Valley residents. Proclamations will not be considered which are potentially controversial, political or religious in nature unless approved by the majority of Councilmembers. 3. Proclamations can be issued at the discretion of the Mayor, and may be for organizations, individuals, or businesses within or outside Spokane Valley's jurisdiction. b. Procedure for proclamations to be read at a Council Meeting: 1. The person making the request need not be a Spokane Valley resident 2. Requests should be made at least four weeks in advance of the scheduled Council meeting 3. The person asking for the proclamation should agree to be in attendance or have someone attend in their stead 4. The City Clerk will inform the requestor whether the proclamation request is approved 5. The person making the request shall draft the proclamation and send it to the City Clerk once approval is given 6. The City retains the right to modify and/or edit the proposed proclamation as it sees fit 7. It is the Council's preference to have proclamations read at formal meetings, which are generally held the 2nd and 4th Tuesdays; however, proclamations may be read at Study Sessions due to scheduling conflicts. c. For those instances where proclamations are requested for events other than to be read at an open Council meeting, the same procedure as above shall be followed, but instead of having someone at a Council meeting to officially receive the proclamation, the City Clerk will mail the proclamation to the requestor, or it can be hand -carried by the Councilmember attending the event to read the proclamation. d. Reading of these proclamations will typically take place at a formal format Council meeting, immediately after the Mayor's report, or could take place as the first agenda item on a Study Session. Page 28 of 68 232. Taxes: Increasing or Imposing New Taxes The Council strongly believes in fiscal restraint, and that increasing the tax burden on its property owners and citizens by increasing or imposing new taxes should be avoided except as a last resort. In addition to complying with all applicable statutory requirements, increasing or imposing new taxes should only be done as follows: a. As requested by the City Council, the City Manager in consultation with the Finance Director, shall notify the City Clerk of Council's desire for a proposed ordinance, and ask the City Attorney to prepare a draft ordinance. b. Within 14 days following notice to the City Clerk, the City Clerk shall publish a notice of public hearing once a week for two consecutive weeks in the official newspaper of the City, stating 1) the date, time and place of Council's public hearing 2) the purpose of the hearing: that a tax increase or new tax has been proposed 3) that a copy of the proposed draft ordinance shall be furnished to any City taxpayer who requests it; and 4) that any City taxpayer may appear and provide verbal or written comment for or against the proposed draft ordinance. c. Preceding such public hearing, staff will provide an administrative report to Council describing the financial deficit and need for the increased or new tax; and if Council concurs and after the public hearing, the proposed draft ordinance shall proceed as follows: 1) Proceed with a first reading of the proposed draft ordinance (same or different meeting as the public hearing) 2) Second reading of the proposed draft ordinance at a subsequent meeting. d. Approval of increasing or imposing new taxes requires an affirmative vote of a majority plus one of the whole Council. 244. Hearings: [note: See Appendix A for quasi-judicial hearings] a. Purpose 1. Held to obtain public input on legislative decisions on matters of policy 2. Are required by state law in such matters as comprehensive plan use plans, or annual budget 3. Do not involve legal rights of specific private parties in a contested setting 4. Affect a wide range of citizens or perhaps the entire jurisdiction 5.. Decisions reached as a result of these hearings are not second-guessed by the courts, and if challenged, are reviewed only to determine if they are constitutional or violate state law b. Process 1. State statutes do not specify how public hearings should be conducted. Because legislative hearings are generally informal, the main concern is to provide an opportunity for all attending members of the public to speak if they desire. Individual comments shall be limited to a specific amount of time as determined by the Presiding Officer , and the public should be advised that comments must relate to the matter at hand. The "ground rules" for the conduct of the hearing may be stated by the Presiding Officer at the beginning of the hearing: a. All public comments shall be made from the speaker's podium, shall be directed to the Mayor and Council, and any individual making comments shall first give their name and city of residence. Speakers may be asked to spell their last name because an official recorded transcript of the public hearing is being made. b. No comments shall be made from any other location, and anyone making "out of order" comments shall be subject to removal from the meeting. c. Unless otherwise determined by the Presiding Officer, all public comments shall be limited to three minutes per speaker and members of the public are not permitted to give any of their own Page 29 of 68 speaking time to other members of the public. This time is an opportunity to hear from various members of the public in a limited public forum, and not an opportunity for extended comments or dialogue. d. At the discretion of the Presiding Officer, members of the public shall only speak once per issue. e There shall be no demonstrations, applause or other audience participation, before, during or at the conclusion of anyone's presentation. Such expressions are disruptive and take time away from the speakers. f. Unless read and/or handed in by the individual speaker during the public hearing, previously received written public comments shall be read by the City Clerk at the pleasure of the Mayor. In the interest of time, the Mayor may limit the reading of such comments to the Clerk reading who the letter or written material is from, and if easily discernible, whether that person is for or against the issue at hand. All written comments become an official part of the record. g. These rules are intended to promote an orderly system of holding a public hearing, to give persons an opportunity to be heard, and to ensure that individuals are not embarrassed by exercising their right of free speech. 2. The Presiding Officer declares that the public hearing on the topic at hand is open, notes the time for such opening, and asks staff to make their presentation. 3. After staff presentations, the Presiding Officer calls for public comments. 4. The Presiding Officer asks if any members of Council have questions of any of the speakers or staff. If any Councilmember has questions, the appropriate individual shall be recalled to the podium. 5. The Presiding Officer declares the public hearing closed and notes the time for such closing. 245. Reconsideration 1. The purpose of reconsidering a vote is to permit change or correction of an erroneous action, or to take into account added information or a changed situation that has developed since the taking of the vote. Any action of the Council, including final action on applications for legislative changes in land use status, shall be subject to a motion to reconsider except: a. any action previously reconsidered; b. motions to adjourn or motions to suspend the rules; c. an affirmative vote to lay an item on, or take an item from, the table; d. a previously passed motion to suspend the rules; or e. a vote electing to office one who is present and does not decline. 2. Such motion for reconsideration: a. shall be reconsidered during the same Council meeting; b. shall be called up when no business is pending (no action is pending); c. if action is pending, the Mayor asks the Clerk to note that the motion to reconsider has been made and shall be taken up when a member calls the motion to reconsider the vote when no other business (action ) is pending; d. shall be made by a member who voted on the prevailing side on the original motion. This means a reconsideration can be moved only by one who voted aye if the motion involved was adopted, or no if the motion was lost. It is permissible for a Councilmember who cannot make such a motion, but believes there are valid reasons for one, to try to persuade someone who voted on the prevailing side, to make such a motion. e. a member who makes this motion should state that he or she voted on the prevailing side; f. needs a second, and can be seconded by any member; g. is debatable if the type of motion it reconsiders is debatable; and h. is not amendable and requires a majority vote to adopt. Page 30 of 68 3. Step 1: A member of Council who voted on the prevailing side makes the motion, such as "I move to reconsider the vote on the resolution relating to holidays. I voted for [or against] the resolution." This motion needs a second, which can be seconded by any Councilmember. 4. Step 2: If the motion for reconsideration is adopted, the original motion is then placed before Council as if that motion had not been voted on previously; and Council again takes that motion under discussion, followed by a new vote. 5. Any motion for reconsideration of a matter which was the subject of a required public hearing or which is a quasi-judicial matter, may not be discussed or acted upon unless and until the parties or their attorneys and the persons testifying have been given at least five days advance notice of such discussion and/or action. 265. Council Materials a. Council Material Councilmembers and staff should read the agenda material and ask clarifying questions of the City Manager or other appropriate staff prior to the Council meeting when possible. Council recognizes there are times when Councilmembers may wish to bring additional documentation to a meeting on a specific subject, whether that subject is on the agenda or not, in order to share with Council and staff. When possible, the materials should be distributed to Councilmembers and staff prior to the Council meeting, or if distributed during a meeting, Councilmembers should indicate they would like the materials considered -for a future meeting, since except in an emergency, Councilmembers would normally not take time at the dais to read material just received. Pre -scheduled materials Council wishes to share as part of the Council packet could also be included on study session agendas under "Council Comments." b. Council Packets Councilmembers shall personally pick up their agenda packets from their City desk, unless otherwise arranged by the Councilmember or further directed by Council. Councilmembers have the option of accessing their Council packet via the City's website. Unless notified otherwise, the City Clerk shall prepare a hard copy agenda packet for individual Councilmembers. c. Packet Materials Request for Council Action form (RCA): This is a cover sheet used by staff to introduce an agenda item. It includes the agenda item title, citing of governing legislation associated with the topic, previous Council action taken, and background on the topic. Options for Council consideration are also included, as well as a staff recommended action or motion. The options and recommended action or motion should be viewed as aids to Council in making a motion or taking action, but should not be thought of as obligatory, as Council always has the option of making a motion different from what is included on the form. Generally, by the time an item is ready for a motion, Council has already read, heard, and/or discussed the item at least three times (such as an informational item, an administrative report, and lastly as an action item), and the wording of a motion would not normally be controversial, although it is important to state the motion as a motion, such as "I move to" or "I move that" or other similar language. 267. "Three Touch Principle" Decision makers and citizens at all levels of the City should have adequate time to thoroughly consider the issues prior to final decisions. It is the intent of the Council that the Council and administration shall abide by the "Three Touch Principle" whenever possible. These procedural guidelines are designed to avoid "surprises" to the City Council, citizens and administrative personnel. Any request or proposal for adopting or changing public policy, ordinances, resolutions or City Council directives which require a decision of the City Council or administration, should "touch" the decision makers three separate times. This includes verbal or written reports, "information only" agenda items, or any combination thereof. To facilitate the Council's strategic use of legislative time at its meeting, staff may satisfy the first touch by issuing an informational Page 31 of 68 memorandum, unless the subject matter is complex in nature. Quasi-judicial matters and any subject discussed in executive sessions are excluded from application of the "Three Touch Principle." It is recognized that unexpected circumstances may arise wherein observance of the "Three Touch Principle" is impractical. However, when unusual circumstances arise which justify a "first discussion" decision, the persons requesting the expedited decision should also explain the timing circumstances. This principle excludes staff reports and other general communications not requiring a Council decision. Page 32 of 68 CHAPTER 2 Legislative Process Page 33 of 68 A. Election of Officers Procedures for electing officers are as follows: 1. Biennially, at the first meeting of the new Council, the members thereof shall choose a Presiding Officer from their number who shall have the title of Mayor. In addition to the powers conferred upon him/her as Mayor, he/she shall continue to have all the rights, privileges and immunities of a member of the Council. If a permanent vacancy occurs in the office of Mayor, the members of the Council at their next regular meeting shall select a Mayor from their number for the unexpired term. Following the election of the Mayor, election of a Deputy Mayor shall be conducted in the same manner. The term of the Deputy Mayor shall run concurrently with that of the Mayor. (RCW 35A.13.03026) There are no term limits for the office of Mayor or Deputy Mayor. 2. The election for Mayor shall be conducted by the City Clerk. The City Clerk shall call for nominations. Each member of the City Council shall be permitted to nominate one person, and a nomination shall not require a second. A nominee who wishes to decline the nomination shall so state at that time. Nominations are then closed. The election for Deputy Mayor shall be conducted by the Mayor, and nominations shall be made in the manner previously described for the election of the Mayor. 3. Except when there is only one nominee, election shall be by written ballot. Each ballot shall contain the name of the Councilmember who cast it. Selection of Mayor and of Deputy Mayor shall each be determined by majority vote of Councilmembers present. The City Clerk shall publicly announce the results of the election. Thereafter, the City Clerk shall record the individual Councilmember's vote in the minutes of the meeting. 4. If the first round of votes results in no majority vote of Councilmembers present, the voting process shall be repeated no more than two more times. During subsequent votes, Councilmembers do not have to vote the same as they did in the previous vote. If after three attempts, Council is unable to agree on a Mayor by majority vote of Councilmembers present, the office of Mayor shall be temporarily filled by an Acting Mayor, which shall be the Councilmember who just previously served as Mayor if that person is still a member of Council, or if the previous Mayor is no longer a Councilmember, then by the Deputy Mayor, or if such person prefers not to serve as Mayor or if that person is no longer a member of Council, the Councilmember with the next highest seniority. The Acting Mayor shall continue in office and exercise such authority as is described in RCW 35A.1327 until the members of the Council agree on a Mayor, which shall be determined at the next scheduled Council meeting, at which time the role of Acting Mayor shall cease and terminate. 5. At the next scheduled Council meeting voting for Mayor shall proceed in the same manner as the initial first round of voting from the previous Council meeting, but Councilmembers shall only vote on the Councilmembers who received the highest number of votes. If after three voting attempts, there is still no majority vote of Councilmembers present, the vote shall be determined by whichever Councilmember has the most votes at the third voting attempt. If at that time, there is a two-way tie of Councilmembers receiving the most votes, the tie shall be broken based on the flip of a coin. The City Manager shall flip the coin. If there are more than two Councilmembers tying with the most votes, that tie shall be determined by another means of chance to narrow the Councilmembers down to two, at which time the outcome shall be determined by written ballot. Page 34 of 68 B. Filling Council Vacancies 1. General Process: (Note that public comment shall not be taken during this entire process.) If a vacancy occurs on the City Council, the Council shall follow the procedures outlined in RCW 35A.13.02028 and Council's adopted procedure in compliance with RCW 35A.13.020, as well as RCW 42.12.070.29 The timeline will vary depending on when the process begins. Pursuant to RCW 35A.13.020, City Council has 90 days from the vacancy to appoint a qualified person to the vacant position. If this timeframe is not met, the City's authority in this matter would cease and the Spokane County Board of Commissioners would appoint a qualified person to fill the vacancy. In order to be qualified to run for Spokane Valley City Council, or hold such position, a person must be [RCW 42.04.02030] a citizen of the United States, 18 years of age or older, a resident of the City of Spokane Valley for a year or more preceding his or her election, a registered voter in the City of Spokane Valley at the time of filing the declaration of candidacy and at the -time of filing the declaration of candidacy if the candidate had ever been convicted of a felony, they must no longer be under the authority of the Department of Corrections, or currently incarcerated for a felony. Pursuant to RCW 42.12, remaining members of Council shall appoint a qualified person to fill the vacancy as an interim position who will serve from the date of appointment until the person elected in the November odd - numbered year general election takes office, which is the date the election results are certified, normally around the 26th of November. (See also 35A.12.040) Immediately upon the election being certified, that just -elected person will take the oath of office, take their position as a member of Council, and complete the remainder of the unexpired term. a. Procedure for Filling a Council Vacancy, Timeline/Procedure-Publication: The City Clerk shall publish the vacancy announcement inviting citizens of the City who are interested and qualified to sit as a Councilmember, to apply on an application form provided by the City (see Appendix E for application). Qualifications to sit as a Councilmember are set forth in RCW 35A.13.020, which refers to RCW 35A.12.030: (1) must be a registered voter of the city at the time of filing his or her declaration of candidacy; (2) has been a resident of the city for a period of at least one year next preceding his or her election. Additional qualifications include those stated above under #1 General Process, and that Councilmembers shall not hold any other office or employment within the Spokane Valley City government [RCW 35A.12.030]. In order to avoid any real or perceived conflict of interest, no member of Council's immediate family may be currently employed by the City of Spokane Valley since employment is considered a contractual matter, and a councilmember would have a prohibited interest in a contract between a family member who is an employee of the city, and the city. (See Appendix E Definitions for description of immediate family.) If possible, the vacancy announcement shall be published for three consecutive weeks. b. The City Clerk shall establish the deadline to receive applications, for example, no later than 4:00 p.m. on a certain date. c. RCW 42.30.110(1)(h), set a special meeting with an executive session beginning at 5:00 p.m. Council shall meet and adjourn to executive session to review and discuss all of the applications. After the review and discussion, Council shall return to Council Chambers and the Special Meeting shall be adjourned. d. Hold a regular 6:00 p.m. meeting, same evening as above special meeting. Pursuant to RCW 42.30.110(1)(h), Council shall meet in open session and part of this agenda shall include selection of applicants to interview. Selection shall be by nomination and second. A vote shall be taken and candidates receiving a majority vote of those councilmembers present, ; shall be interviewed. Immediately after this Council meeting or as soon as practicable, the Clerk shall send a list of potential questions to all those to be interviewed. e. Schedule the conducting of the interviews for an upcoming -Council meeting-. Pursuant to RCW 42.30.110(1)(h), the interviews shall be conducted during an open Council meeting. Each interview shall be a maximum of 30 minutes. f. Schedule a special 5:00 p.m. meeting with an executive session. Pursuant to RCW 42.30.110(1)(h), Council shall meet and adjourn to executive session (closed session) to discuss applicants. After the discussion, the Special Meeting shall be adjourned as usual. Page 35 of 68 g. Hold a regular 6:00 p.m. meeting, same evening as "f' above special meeting. Pursuant to RCW 42.30.110(1)(h), Council shall meet in open session; and the last action item of that agenda will include a vote to fill the vacancy. Upon selection of the new Councilmember, that person shall be sworn in by the City Clerk, and take their seat at the dais. 2. Nomination Options for Conducting Interviews: a. After holding an executive session to review applications, during a subsequent open session, any Councilmember may 1) nominate an applicant to be interviewed 2) the nomination must be seconded 3) Councilmembers may make more than one nomination, but only one at a time 4) the Mayor shall ask if there are further nominations 5) if no further nominations, the Mayor shall close the nominations 6) votes shall be taken on each applicant in the order of nomination 7) votes shall be by raised hand 8) applicants receiving a majority of votes of those Councilmembers present, shall be interviewed 9) once all voting has taken place, the City Clerk shall summarize which applicants shall be interviewed based on the voting outcome. As soon as possible after the Council meeting, the City Clerk shall notify each applicant to inform them if they will or will not be interviewed; notify those to be interviewed of the date and time for their interview, and send each person to be interviewed, the list of possible interview questions; or 10) Instead of the above nomination process, after holding an executive session to review applications, Council may choose to interview all applicants 11) the length of the interview shall be determined based upon the number of applicants 12) interviews shall be done in last -name alphabetical order 13) the City Clerk shall notify all applicants of the date, time and procedure for their interview 14) to keep the process as fair as possible, on the date of the interview, applicants not yet interviewed shall be asked to wait in a waiting area outside the Council Chambers and away from viewing or hearing the meeting's proceedings. OR b. If during open session, Council has nominated only one person to interview, or in the case of more than one vacancy, one person per vacancy, Council may forego the interview process and -move to make the appropriate appointment. 3. Interview Questions/Process: a. During the interview, each Councilmember may ask each candidate a maximum of three questions, which includes any follow-up questions. b. Candidates shall be interviewed in alphabetical order of last name. 4. Nomination and Voting Process to Select Applicant: a. Nomination Process: Councilmembers may nominate an applicant to fill the vacancy. A second is required. If no second is received, that applicant shall not be considered further unless no applicant receives a second, in which case all applicants who were nominated may be considered again. Councilmembers may not make more than one nomination unless the nominee declines the nomination and unless there is no second to the nomination; in which case the Councilmember make another nomination. Once the nominations are given, the Mayor shall close the nominations and Council shall proceed to vote. b. Voting Process. RCW 42.12.070 states that where one position is vacant, the remaining members of the governing body shall appoint a qualified person to fill the vacant position. By adoption of this policy, Council has chosen the following process for making such appointment: 1) Except when there is only one nominee, a vote for an applicant shall be by written ballot. Each ballot shall contain the name of the Councilmember who cast it. 2) The vacancy may only be filled when a majority of the remaining City Council (whether present or not) -affirmatively votes for the applicant, i.e. if five City Councilmembers are present, this would require at least four Councilmembers voting for an applicant. If subsequent rounds of voting Page 36 of 68 are needed, each round of voting follows the same process. The Mayor may ask for Council discussion between voting rounds. 3) Round One Vote: The City Clerk shall publicly announce the results of the election. The applicant receiving the majority of votes shall be the new Councilmember. If no applicant receives a majority of votes from the City Council, then the three applicants receiving the most affirmative votes would be considered in a second round. 4) Round Two Vote: Round Two proceeds the same as Round One. If one of the three applicants still fails to receive a majority of affirmative votes, then the two applicants of the three who received the most affirmative votes would then be considered in a third round; or if there are only two applicants and they receive tie votes, a third round shall be taken. Councilmembers may change their vote between rounds. 5) Round Three Vote: Round Three proceeds the same as Rounds One and Two. If after this round, the vote of the two applicants results in a tie, then the City Manager, with concurrence of Council shall flip a coin to determine who shall fill the vacancy, with the applicant whose last name is closest to the letter A being assigned "heads" and the other person assigned "tails." In the rare circumstance where both applicants' last name begins with the same letter of the alphabet, the applicant whose entire last name is closest to the letter A shall be assigned "heads" and the other person assigned "tails." In the equally rare circumstance where both applicants have the same last name, the applicant whose first name is closest to the letter A shall be assigned "heads" and the other person assigned "tails." 5. Seating of New City Councilmember: Once an applicant either has received a majority of votes or wins the coin flip, if the appointed applicant is at the meeting, the City Clerk shall administer the oath of office, and the new Councilmember shall be officially seated as a City Councilmember. If the appointed applicant is not at the meeting, such action is not official until the applicant takes the oath of office. C. Legislative Agenda Councilmembers work each year (or sometimes every two years) to draft a "legislative agenda" to address Council ideas, suggestions and specific legislative programs in terms of upcoming or pending legislative activity in Olympia that would or could have an effect on our City. Additionally, Councilmembers have the option of creating a similar legislative agenda to address concerns on a national level, which can be addressed during Council's participation in the annual National League of Cities Conferences held in Washington, D.C. D. Council Travel Allocation Council is allocated a budget to handle certain City business -related travel expenses. The total allocation of travel funding budgeted for the legislative branch for the fiscal year shall be apportioned equally among six Councilmembers, and the Mayor may receive additional funding based on the extra travel demands of the office. These monies may be used to defray expenses for transportation, lodging, meals and incidental expenses incurred in the conduct of City business. Periodic updated statements of expenditures shall be provided to each Councilmember by the Finance Department. Should a Councilmember exhaust their apportionment of funds, that person shall be personally responsible for payment of any travel and related expenses unlessTef they have requested and received written affirmationmay request a voluntary allocation from another Councilmember of their voluntary allocation who has a balance in to grant the travel related expenses from that granting Councilmember's their travel apportionment. Such granting of travel allocations shall be documented with the appropriate completed form (see Appendix F). During the last six months of a Councilmember's current term of office, incurring City business -related travel expenditures outside a 50 mile radius, requires the prior authorization of the Finance Committee, except when such travel fulfills the obligations of the Councilmember's service on statewide or regional boards, commissions or task forces. E. COUNCIL EXPENSE REIMBURSEMENT POLICY Councilmembers are entitled to payment of and reimbursement for lawful expenditures incurred on official City business when such expenditures are within the allotted budget. The City shall not reimburse Page 37 of 68 Councilmembers for meals or beverages with constituents when there is not at least a quorum present as that would not be is not considered official City business. The City shall not reimburse an expense if that expense is reimbursable by another agency. 1. Travel Approval and Expense. a. General Travel: Each Councilmember shall be permitted to travel within the constraints of each Councilmember's allotted budget, which may also include donated allocation(s) from another Councilmember(s). (See Appendix F for Request Form.) b. Allowable Travel Expense. Allowed travel expenses include transportation, lodging, meals, and other related expenditures lawfully incurred by Councilmembers in the course and scope of their Councilmember duties. a. Meals and lodging are reimbursed at a cost deemed customary and reasonable. Meal receipts shall be itemized to receive reimbursement. b. —Tips are allowable expenditures when they approximate 15% or less, unless the restaurant or personal service provider sets a mandatory group rate at a higher percentage, or the tip is already included in the expenditure. Please carefully examine your bill and be aware of statements such as "A service charge of %/$ will be added to your bill."- Reimbursement for tips is limited to food service, valet services, and taxi/ride share transportation. c. When staff is making and paying for air travel arrangements, airline trip insurance may be purchased on a case -by -case basis at the discretion of the City Manager. Times when such trip insurance may be purchased include necessary travel when the weather is questionable. d. Mileage shall be reimbursed according to the current IRS mileage rates for traveled miles as determined by such websites as google maps, or other internet apps or mileage distance calculators. c. Non -Reimbursement or Prohibition of Travel Expense. Unauthorized travel expenses include but are not limited to the following items, for which no reimbursement shall be allowed: a. Liquor b. Expense of a spouse or other persons not authorized to receive reimbursement under this policy c. Personal entertainment/movies d. Theft, loss, or damage to personal property e. Barber or beauty parlor f. Airline or other trip insurance (see c above) g. Personal postage h. Reading material except for that associated with official City business i. Personal telephone calls j. Personal toiletry articles, including toothpaste, toothbrush, comb, brush, candy, gum, tissues, and other miscellaneous items k. Dry cleaning/laundry service 1. Prohibited expenses charged to the City in error shall be immediately reimbursed. d. Conferences/Meetings/Seminars. 1. Where a meal is included in a registration package, the cost of a meal eaten elsewhere is not reimbursable unless its purpose is to allow the conduct of City business. 2. For meetings or seminars hosted by an organization for which the City pays membership dues, lodging is limited to the amounts that are reasonable and necessary based upon the government or conference rate offered by the host hotel(s). 3. When an extra day's stay would reduce airfare beyond the extra day's hotel and meals, a Councilmember may stay an extra day. 2. Payment of Expenses. a. Use of City Credit Cards. Use of City credit cards for travel is authorized pursuant to chapter 2.65 SVMC. b. Prepayment. Examples of travel expenses subject to prepayment include registration fees, airline tickets, and certain lodging where the cost is part of the registration package. c. Direct Billing. Direct billing to the City for expenses such as meals and lodging is prohibited. Page 38 of 68 d. Expense Reimbursement Report. Expense Reimbursement Forms shall be completed no less than monthly. Councilmembers shall complete the Expense Reimbursement Form and submit it to Finance, documenting the amount due the Councilmember, or City as appropriate. The actual amounts expended shall be written on the form with itemized receipts attached. The completed Expense Reimbursement Form shall be submitted to Finance within 45 days after completing travelof month end. Expense Reimbursement Forms submitted more than 45 days after completing travel shall not be honored. 3. Use of Personal Vehicle. a. Reimbursement. Expenses for the use of personally -owned vehicles in the course of City business are reimbursed at the then -current U.S. Government (IRS) rate. Councilmembers who use their personal car for City business shall carry, at a minimum, the Washington state required insurance coverage. Councilmembers shall be responsible for maintaining this coverage at their own cost. b. Passengers. Should more than one Councilmember travel in the same personal vehicle on City business, only the individual owning the vehicle is entitled to reimbursement for transportation. 4. Cancellation. A Councilmember shall adhere to cancellation deadlines when canceling conferences, seminars, regional meetings, hotel, and airfare, or any other pre -payment or obligation made on his/her behalf. Except in the case of a personal or family emergency, or in the event the cancellation was a City business decision, expenses incurred by the City resulting from failure to conform to cancellation deadlines are the personal responsibility of the Councilmember and the Finance Committee shall be informed, and those expenses shall be repaid to the City within fourteen calendar days of the cancellation. F. Ballot Measures: 1. State Law RCW 42.17A 555. State law has enacted statutory prohibitions (with limited exceptions) against the use of public facilities to support or oppose ballot propositions: "No elective official nor any employee of his or her office nor any person appointed to or employed by any public office or agency may use or authorize the use of any of the facilities of a public office or agency, directly or indirectly, for the purpose of assisting a campaign for election of any person to any office or for the promotion of or opposition to any ballot proposition. Facilities of a public office or agency include, but are not limited to, use of stationery, postage, machines, and equipment, use of employees of the office or agency during working hours, vehicles, office space, publications of the office or agency, and clientele lists of persons served by the office or agency. However, this does not apply to the following activities: (1) Action taken at an open public meeting by members of an elected legislative body or by an elected board, council, or commission of a special purpose district including, but not limited to, fire districts, public hospital districts, library districts, park districts, port districts, public utility districts, school districts, sewer districts, and water districts, to express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or ordinance, or to support or oppose a ballot proposition so long as (a) any required notice of the meeting includes the title and number of the ballot proposition, and (b) members of the legislative body, members of the board, council, or commission of the special purpose district, or members of the public are afforded an approximately equal opportunity for the expression of an opposing view. (2) A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry; (3) Activities which are part of the normal and regular conduct of the office or agency." [emphasis added] 2. City's Implementation of RCW 42.17A.555 In the City's implementation of RCW 42.17A.555, the City Council shall not, during any part of any Council meeting, consider requests from outside agencies or individuals for Council to support or oppose ballot Page 39 of 68 measures; nor shall Council permit any public comment on any proposed or pending ballot issue, whether or not such comments seek endorsement or are just to inform Council of upcoming or proposed ballot issues; nor shall Councilmembers disseminate ballot -related information. 3. Providing Informative Materials to Council The requestor has the option of mailing materials to individual Councilmembers via the United States Postal Office. Because even the use of e-mail for ballot purposes could be construed as use of public facilities and could be interpreted as being in violation of RCW 42.17A.555, materials should be sent via regular mail through the United States Postal Office. Information shall be objective only and not soliciting a pro or con position. 4. Public Comment. Council has chosen not to support or oppose ballot issues as those are left to the will of the people voting. The use of any of the City's facilities including the use of the Council chambers and/or broadcast system would likely be construed as being in violation of RCW 42.17A.555 and therefore, general public comment on ballot issues, or proposed ballot issues shall not be permitted. Page 40 of 68 CHAPTER 3 Council Contacts Page 41 of 68 A. Citizen Contact/Interactions Outside of a Council Meeting 1. Mayor/Council Correspondence Councilmembers acknowledge that in the Council/Manager form of government, the Mayor is recognized by community members as a point of contact. To facilitate full communications, staff shall work with the Mayor to circulate to Councilmembers, copies of emails and written correspondence directed to the Mayor regarding City business. This provision shall not apply to invitations for mayoral comments at various functions, nor requests for appointments or other incidental contact between citizens and the office of the Mayor. 2. Concerns, Complaints and Suggestions to Council When citizen concerns, complaints or suggestions are brought to any, some, or all Councilmembers, the Mayor shall, when deemed appropriate and/or necessary, in -consultation with the City Manager to, first determine whether the issue is legislative or administrative in nature and then: a. If legislative, and a concern or complaint is about the language or intent of legislative acts or suggestions for changes to such acts, and if such complaint suggests a change to an ordinance or resolution of the City, the Mayor and City Manager may refer the matter to a future Council agenda for Council's recommendation in forwarding the matter to a committee, administration, or to the Council for study and recommendation. b. If administrative, and a concern or complaint regards administrative staff performance, execution of legislative policy or administrative policy within the authority of the City Manager, the Mayor should then refer the complaint directly to the City Manager for review, if said complaint has not been so reviewed. The City Council may direct that the City Manager brief the Council when the City Manager's response is made. 3. Administrative Complaints Made Directly to Individual Councilmembers When administrative policy or administrative performance complaints are made directly to individual Councilmembers, the Councilmember shall then refer the matter directly to the City Manager for review and/or action. The individual Councilmember may request to be informed of the action or response made to the complaint. However, the City Manager shall not be required to divulge information he/she deems confidential, in conformity with applicable statutes, ordinances, regulations, policies or practices. Although citizens' direct access to elected officials is to be encouraged to help develop public policy, City Councilmembers should not develop a "personal intervention" pattern in minor calls for service or administrative appeals which may actually delay a timely customer service response. The best policy is to get the citizen into direct contact with customer service unless an unsatisfactory result has occurred in the past. In that case, refer to the paragraph above. 4. Social Media Councilmembers shall not use social media as a mechanism for conducting official City business, although it is permissible to use social media to informally communicate with the public. Examples of what may not be communicated through the use of social media include making policy decisions, official public noticing, and discussing items of legal or fiscal significance that have not been released to the public. As with telephone and e-mails, communication between and among Councilmembers via social media could constitute a "meeting" under the Open Public Meetings Act, and for this reason, Councilmembers are strongly discouraged from "friending" other Councilmembers. 5. Donations On occasion, Councilmembers could be contacted by citizens or businesses regarding donations. (See Spokane Valley Municipal Code 3.34.4 for policy on donations;. Page 42 of 68 B. Staff Contacts and Interactions 1. Role of the City Manager The City Manager is the chief administrative officer of the City of Spokane Valley. The City Manager is directly accountable to the City Council for the execution of the City Council's policy directives, and for the administration and management of all City departments. The powers and duties of the City Manager are defined by Washington law RCW 35A.13.080. Such duties may be expanded by Ordinance or Resolution. Balanced with the City Manager's accountability to the City Council for policy implementation is the need for the Council to allow the City Manager to perform legally defined duties and responsibilities without interference by the City Council in the management decisions of the City Manager. 2. City Staff Attendance at Meetings a. The City Manager or his/her designee shall attend all meetings of the City Council, unless excused by the Presiding Officer or Council. The City Manager shall be responsible to the Council for the proper administration of all affairs of the City. The City Manager shall recommend for adoption by the Council such measures as he/she may deem necessary or expedient; prepare and submit to the Council such reports as may be required by the body or as the City Manager deems advisable to submit; keep the Council fully advised as to the business of the City; and shall take part in the Council's discussion on all matters concerning the welfare of the City. (RCW 35A.13.08031) b. It is Council's intent that the City Manager schedule adequate administrative support during Council meetings for the business at hand, keeping in mind that the City Manager must also protect the productive capability of department heads and of all staff. Required attendance at meetings by City staff shall be at the pleasure of the City Manager. 3. City Clerk - Minutes The City Clerk, or in the Clerk's absence the Deputy City Clerk shall keep minutes as required by law, and shall perform such other duties in the meeting as may be required by the Council, Presiding Officer, or City Manager. In the absence of the City Clerk and the Deputy City Clerk, the City Clerk shall appoint a replacement to act as Clerk during the Council meeting. The Clerk shall keep minutes which identifies the general discussion of the issue and complete detail of the official action or agreement reached, if any. As a rule and when possible and practical, regular meetings, or those Council meetings held at 6 p.m. on Tuesdays, (which includes formal format and study session format) shall be video -recorded. Special meetings shall not normally be video -recorded. Executive Sessions shall not be video or audio recorded. Original, signed and approved minutes shall be kept on file in the City Clerk's office and archived according to State Record Retention Schedules. Copies of the approved minutes shall also be posted on the City's website as soon as practical after such minutes are approved and signed. Whenever possible, video recordings of Council meetings shall be posted on the City's website. 4. Administrative Interference by Councilmembers Neither the Council nor any of its committees or members shall direct or request the appointment of any person to, or his/her removal from, any office by the City Manager or any of his/her subordinates. Except for the purpose of inquiry, the Council and its members shall deal with the administrative branch solely through the City Manager and neither the Council nor any committee or member thereof shall give any directives, tasks, or orders to any subordinate of the City Manager, either publicly or privately; provided, however, that nothing herein shall be construed to prohibit the Council, while in open session, from fully and freely discussing with the City Manager anything pertaining to appointments and removals of City officers and employees and City affairs. (RCW 35A.13.12032.) 5. Informal Communications Encouraged RCW 35A.13.120 should not -be construed as to prevent informal communications with City staff that do not involve orders, direction, or are meant to influence actions or administrative policy. Members of the Council Page 43 of 68 are encouraged to interact informally and casually with City staff for the purpose of gathering information, obtaining explanations of policies and programs or providing incidental information to staff relevant to their assignment. Such informal contacts can serve to promote better understanding of specific City functions and problems. However, Councilmembers must be careful in such interaction to avoid giving direction or advice to members of City staff. While maintaining open lines of communication, City staff responding to information requests from Councilmembers shall inform their supervisor of such contact and provide the supervisor with the same information shared with the Councilmember. Page 44 of 68 CHAPTER 4 COMMITTEES, BOARDS, COMMISSIONS Page 45 of 68 A. Regional Committees, Commissions and Boards 1. Committees a. Spokane Valley Councilmembers and/or residents who seek representation on any standing committee, board, or commission required by state law, shall be appointed by the Mayor with confirmation by the Council. b. Appointment Process: Any committee, board, commission, task force, etc., requiring Mayoral appointment of committee members, shall also require confirmation by the Council, which shall be by majority vote of those present at the time the -vote takes place. By majority vote, Council can reject the appointment. If Council fails to confirm the recommended appointment, the Mayor could either make another recommendation, or the appointment may be postponed to a later date, giving City staff opportunity to further advertise for committee openings. c. Removal Process of Councilmember. Any Councilmember on any committee, board, commission, task force, etc., requiring Mayoral appointment, may be removed by the Mayor, with confirmation by the Council, which shall be by majority vote of those present at the time the vote takes place. d. Removal Process of Citizen: Any citizen on any committee, board, commission, task force, etc., requiring Mayoral appointment, may be removed by the Mayor, with confirmation by the Council, which shall be by majority vote of those present at the time the confirmation vote takes place. Reasons for removal include conflict of interest, unexcused multiple absences, or for those committees which require the appointee to be a Spokane Valley citizen, failure to qualify as to residency. e. A Councilmember or citizen may resign due to conflicts of time or scheduling commitments, or other personal reasons. A vacancy caused by resignation, shall be filled as soon as appropriate, but not sooner than two weeks, with notation of such on the advance agenda. f. These Ccommittee, commission board appointments as well as removals, shall be placed as action items on Council meeting agendas, and when possible and practical, will be noted on the Advance Agenda at least two weeks prior to such action. 2. Council Relations with Boards, Commissions and Council Citizen Advisory Bodies a. The purpose of these appointments is to provide Council with insight into areas of interest or concern within each board. As liaisons and representatives of the City, it is the duty of Councilmembers to remember that their sole purpose in attending these meetings and participating as an appointed board/committee member is to represent the City; and as such during those meetings, Councilmembers may not act as a representative of any other business, group or organization without the express consent of the Council. b. Councilmembers are encouraged to share with all Councilmembers, copies of minutes from any statutory boards, commissions, or committees on which they serve and participate. Communications from such boards, commissions and bodies to the City Council which seek action or feedback, should be acknowledged by the Council, preferably by a letter from the Mayor. Any member of the Council may also bring such communication to the Presiding Officer's attention under the agenda item "Committee, Board and Liaison Reports." If any member of the Council requests that any such communication be officially answered by the Council, the Presiding Officer may place the matter on an agenda under New Business, Information, Council Comments (study session format), or other appropriate place, for a specific Council meeting, or take other appropriate action. Page 46 of 68 B. In -House Committees, Boards, etc. 1. Standing committees or commissions required by law shall be appointed by the Mayor for a time certain not to exceed the term provided by law or the term of office of the appointing Mayor and confirmed by Council. Such appointments are generally made at the first or second meeting in January. Following are established in- house committees: a. Planning Commission -- 7 members. "SVMC 18.10.010 Establishment and purpose. There is created the City of Spokane Valley Planning Commission (hereafter referred to as the -''Planning Commission"-'). The purpose of the Planning Commission is to study and make recommendations to the Mayor and City Council for future planned growth through continued review of the City's Comprehensive Land Use Plan, development regulations, shoreline management, environmental protection, public facilities, capital improvements and other matters as directed by the City Council. 18.10.020 Membership. A. Qualifications. The membership of the Planning Commission shall consist of individuals who have an interest in planning, land use, transportation, capital infrastructure and building and landscape design as evidenced by training, experience or interest in the City. B. Appointment. Members of the Planning Commission shall be nominated by the Mayor and confirmed by a majority vote of at least four members of the City Council. Planning commissioners shall be selected without respect to political affiliations and shall serve without compensation. The Mayor, when considering appointments, shall attempt to select residents who represent various interests and locations within the City. C. Number of Members/Terms. The Planning Commission shall consist of seven members. All members shall reside within the City limits. Terms shall be for a three-year period, and shall expire on the 31st day of December. D. Removal. Members of the planning commission may be removed by the Mmayor, with the concurrence of the City Council, for neglect of duty, conflict of interest, malfeasance in office, or other just cause, or for unexcused absence from three consecutive regular meetings. Failure to qualify as to residency shall constitute a forfeiture of office. The decision of the City Council regarding membership on the planning commission shall be final and without appeal. E. Vacancies. Vacancies that occur other than through the expiration of terms shall be filled for the unexpired term in the same manner as for appointments. F. Conflicts of Interest. Members of the planning commission shall fully comply with Chapter 42.23 RCW, Code of Ethics for Municipal Officers; Chapter 42.36 RCW, Appearance of Fairness; and such other rules and regulations as may be adopted from time to time by the City Council regulating the conduct of any person holding appointive office within the City. No elected official or City employee may be a member of the planning commission. b. Lodging Tax Advisory Committee -- 5 members. "SVMC 3.20.040 Lodging tax advisory committee. The City Council shall establish a lodging tax advisory committee consisting of five members. Two members of the committee shall be representatives of businesses required to collect the tax, and at least two members shall be persons involved in activities authorized to be funded by this chapter. The City shall solicit recommendations from organizations representing businesses that collect the tax and organizations that are authorized to receive funds under this chapter. The committee shall be comprised equally of members who represent businesses required to collect the tax and members who are involved in funded activities. One member of the committee shall be from the City Council. Annually, the membership of the committee shall be reviewed. The Mayor shall nominate persons and the Councilmember for the lodging tax advisory committee with Council confirmation of the nominees. Page 47 of 68 Nominations shall state the term of committee membership. Appointments shall be for one- and two- year terms. " c. Finance Committee-- 3 members. The Finance Committee generally consists of three Councilmembers. Meetings are conducted on an as -needed basis as determined by the City Manager. Matters that should be addressed by the Finance Committee, include, but are not limited to: a. authorizing on short notice, approval of change orders that are in excess of the amounts authorized in SVMC 3.35.010(C), in circumstances where such a change order is necessary to avoid a substantial risk of harm to the City. In such an event, the city manager shall provide appropriate information to the city council at its next regular meeting setting forth the factual basis for the action. b. during the last six months of a Councilmember's current term of office, incurring City business -related travel expenditures requires the prior authorization of the Finance Committee, except when such travel fulfills the obligations of the Councilmember's service on statewide or regional boards, commissions or task forces. c. a Councilmember shall adhere to cancellation deadlines when canceling conferences, seminars, regional meetings, hotel, and airfare, or any other pre -payment or obligation made on his/her behalf. Except in the case of a personal or family emergency, or in the event the cancellation was a City business decision, expenses incurred by the City resulting from failure to conform to cancellation deadlines are the personal responsibility of the Councilmember and the Finance Committee shall be informed, and those expenses shall be repaid to the City within fourteen calendar days of the cancellation. d.; Governance Manual Committee — 5 - 6 members This committee usually consists of two or three Councilmembers, the City Manager, the City Attorney, and the City Clerk. The purpose of this Committee is to periodically review the Governance Manual for edits needed for clarity or correction, or to add or edit specific sections by Council consensus, or by request of staff as the need arises. After discussion as a committee, the matter may be scheduled as an administrative report on a future Council agenda. The finalized Governance Manual shall be approved via Resolution. e. Agenda Committee — Mayor, Deputy Mayor, City Manager, City Clerk At the Mayor's option, and either by a schedule determined by the Mayor or by personal individual invitation, the Mayor may invite a third Councilmember to attend this weekly meeting. The attendance by a third Councilmember is at the third Councilmember's discretion. Other staff may be invited at the discretion of the City Manager. As noted in Chapter 1(B)(4), this committee generally meets at a fixed weekly time to review the Council agenda of the upcoming meeting as an opportunity to ask questions and/or request additional materials or research needed for the impending meeting, and to review the Advance Agenda, which is a planning document to aid in scheduling items on future Council agendas. Since this is a standing committee of the Mayor, Deputy Mayor, City Manager, and City Clerk, no committee appointments are necessary. 2. When required by law, committee meetings should be open to the public, including the media, unless discussing matters which would qualify for an executive session if discussed within the whole Council. All Council committee meetings shall be for the purpose of considering legislative policy matters, rather than administrative matters unless requested by the City Manager. Legislative policy considerations should be brought to the Council unless referred to a committee for pre -study. 3. The Mayor may appoint such other ad hoc advisory committees or liaisons from the Council or community for the purpose of advising the Council in legislative policy matters. All ad hoc committees shall be defined by a clear task and a method of "sunsetting" the committee at the conclusion of the assigned task. As with all committee vacancies, ads announcing a vacancy or soliciting membership or participation in a task force or other committee shall be placed on the City's website, and in the City's official newspaper. Page 48 of 68 1 C. Private Committees, Commissions, and Boards The Council recognizes there are various other private boards and committees, such as Spokane Neighborhood Action Partners (SNAP), which appointments are made by their own board. These boards and committees which do not require an appointment by our Mayor, with confirmation by our Council, are nonetheless important aspects of our community and we recognize the time commitment any Councilmember may extend as a member of any of thoese committees and/or boards. As well, Council appreciates hearing a periodic report or update on activities and issues surrounding those boards and committees. Page 49 of 68 APPENDIX A Quasi -Judicial Hearings 1. Purpose Quasi-judicial public hearings involve the legal rights of specific parties, and the decisions made as a result of such hearings must be based upon and supported by the "record" developed at the hearing. Quasi-judicial hearings are subject to stricter procedural requirements than legislative hearings. Most quasi-judicial hearings held by local government bodies involve land use matters, including site specific rezones, preliminary plats, variances, and conditional uses. (MRSC Public Hearings When and How to Hold Them by Bob Meinig, MRSC Legal Consultant August 1998) 2. Specific Statutory Provisions a. Candidates for the City Council may express their opinions about pending or proposed quasi-judicial actions while campaigning, pursuant to RCW 42.36.04033, except that sitting Councilmembers shall not express their opinions on any such matter which is or may come before the Council. b. Ex parte communications should be avoided whenever possible. During the pendency of any quasi-judicial proceeding, no Councilmember may engage in ex parte communications with proponents or opponents about a proposal involved in the pending proceeding unless the Councilmember: (1) places on the record the substance of such verbal or written communications; and (2) provides that a public announcement of the content of the communication and of the parties' rights to rebut the substance of the communication shall be made at each hearing where action is taken or considered on the subject. This does not prohibit correspondence between a citizen and his or her elected official if the correspondence is made a part of the record, when it pertains to the subject matter of a quasi-judicial proceeding. (RCW 42.36.060) 3. Actions/Procedures for a Quasi -Judicial Public Hearing See Spokane Valley Municipal Code Appendix C for City Council Appeal Hearing Procedures. Page 50 of 68 APPENDIX B: RESOLUTION 07-019 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 07-019 AMENDED GENERAL POLICY RESOLUTION OF CORE BELIEFS A RESOLUTION OF THE CITY OF SPOKANE VALLEY AMENDING RESOLUTION 03-027, ESTABLISHING A GENERAL POLICY RESOLUTION EMANATING FROM THE CORE BELIEFS OF THE CITY COUNCIL AND COMMUNITY AND SETTING FORTH DUTIES OF BOTH ELECTED AND APPOINTED OFFICIALS OF THE CITY TO HELP GUIDE LEGISLATIVE AND EXECUTIVE DECISIONS TOWARD EFFECTIVE, RESPONSIVE, AND OPEN GOVERNMENT WHEREAS, the City Council of the City of Spokane Valley, as the elective legislative body, is charged with promulgating Ordinances and Resolutions which become the law of the city; and WHEREAS, such Ordinances and Resolutions must provide enforceable provisions subordinate to, and in harmony with, all other applicable federal and state statutes and regulations; and WHEREAS, the City Council desires to provide a clear set of general policy guidelines for the conduct of city government; Section 1. Modifying Resolution 03-027 as set forth below by adding new section 7. The remainder of the resolution 03-027 is unchanged: NOW, THEREFORE, the City Council of the City of Spokane Valley does hereby affirm and resolve that the following core beliefs shall serve as guidelines for the conduct of affairs by all branches of Spokane Valley City Government. Section 1. Section 2. We believe that Spokane Valley should be a visionary city encouraging its citizens and their government to look to the future beyond the present generation and to bring such ideas to public discussion and to enhance a sense of community identity. We believe that elected body decision -making is the only lawful and effective way to conduct the public's legislative business and that careful observance of a clear set of Governance Coordination rules of procedure can best enhance public participation and decision making. Section 3. We believe in the City Council as policy leaders of the City. One or more City Councilmembers are encouraged to take the lead, where practical, in sponsoring Ordinances or Resolutions excepting quasi-judicial or other public hearings and the statutory duties of the City Manager as set forth in RCW 35A.13.020. Section 4. Section 5. We believe in hearing the public view. We affirm that members of the public should be encouraged to speak and be heard through reasonable rules of procedure when the public business is being considered, thus giving elected officials the broadest perspectives from which to make decisions. We believe that the City of Spokane Valley's governance should be known as "user friendly," and that governance practices and general operations should consider how citizens will be served in the most responsive, effective and courteous manner. Page 51 of 68 Section 6. Section 7. Section 8. We believe that the economic and commercial job base of the community should be preserved and encouraged to grow as an alternative to increasing property taxes. We believe it imperative to have an expanded and diverse economic base. We believe that Councilmembers set the tone for civic discussion and should set an example by: (a) Setting high standards of decorum and civility. (b) Encouraging open and productive conversation amongst themselves and with the community about legislative matters. (c) Demonstrating respect for divergent points of view expressed by citizens, fellow Councilmembers and the staff. (d) Honoring each other and the public by debating issues within City Hall and the Community without casting aspersions on members of Council, the staff, or the public. (e) Accepting the principle of majority rule and working to advance the success of "corporate" decisions. We solicit the City Manager's support in conducting the affairs of the city with due regard for: (a) Promoting mutual respect between the Citizens, City staff and the City Council by creating the organizational teamwork necessary for effective, responsive and open government. (b) Providing the City Council and public reasonable advance notice when issues are to be brought forward for discussion. (c) Establishing and maintaining a formal city-wide customer service program with emphasis on timely response, a user-friendly atmosphere, and an attitude of facilitation and accommodation within the bounds of responsibility, integrity, and financial capability of the city, including organizational and job description documents while pursuing "best practices" in customer service. (d) Seeking creative ways to contain or impede the rising cost of governmental services, including examination of private sector alternatives in lieu of governmentally provided services. (e) Providing a data base of future projects and dreams for the new City of Spokane Valley so that good ideas from its citizens and leaders are not lost and the status of projects can be readily determined. Approved by the City Council this 11th day of December, 2007. ATTEST: /s/ DIANA WILHITE /s/ CHRISTINE BAINBRIDGE Christine Bainbridge, City Clerk Approved as to form: /S/ MICHAEL F. CONNELLY Office of the City Attorney Diana Wilhite, Mayor Page 52 of 68 APPENDIX C: STATEMENT OF ETHICS SPOKANE VALLEY CITY COUNCILMEMBERS' STATEMENT OF ETHICS By adoption of the Resolution which adopts this Governance Manual, the Spokane Valley City Councilmembers hereby agree to be bound by the following rules of ethics: DECLARATION OF PURPOSE: • Provide guidelines and set high ethical standards for Councilmembers to perform their duties in an open, honest, and unbiased manner. • Establish procedures for prevention and/or elimination of possible conflicts of interest. • Improve and strengthen the public's perception and trust in their local government. DEFINITIONS: Compensation: Anything of economic value regardless of amount, however designated, which is paid, loaned, advanced, granted, transferred, or gifted, or to be paid, loaned, advanced, granted, transferred or gifted for or in consideration of personal services to any person or that person's immediate family as that term is defined in RCW 42.17A.005'4E 4). Contract: Includes any contract or agreement, sale, lease, purchase, or any combination of the foregoing. A contracting party is any person, partnership, association, cooperative, corporation, whether for profit or otherwise, or other business entity which is a party to a contract with a municipality. PROHIBITED CONDUCT: (a) Acceptance of Gifts: No Councilmember, based upon their position with the City of Spokane Valley, shall receive, accept, take, seek, or solicit, directly or indirectly, anything of economic value regardless of the amount, as a gift, gratuity, or favor from any person or entity outside the City organization. Exceptions to this prohibition are if a meal is provided to a Councilmember while that person is participating in a meeting or event held by an entity to which a Councilmember is assigned for representation by the City; or when actively participating on a panel giving a presentation to others, in other words as a working lunch; or unless the meal is paid for by the City. Campaign donations made and reported in conformance with Washington law are exempt from this provision. [RCW 42.23.07035] (b) Interest in Contracts, Exceptions: No Councilmember shall be beneficially interested, directly or indirectly, in any contract where the City of Spokane Valley is named as a party to the contract; and no Councilmember shall accept, directly or indirectly, any compensation, gratuity or reward in connection with such contract. This prohibition shall not apply to the exceptions specified in RCW 42.23.030 which are incorporated herein as if fully set forth. (c) Incompatible Service, Confidential Information: No Councilmember shall engage in or accept private employment or render services for any person, or engage in any business or professional activity when such is incompatible with the faithful discharge of his/her official duties as a Councilmember. No Councilmember shall disclose confidential information acquired by reason of such official position, nor shall such information be used for the Councilmember's personal gain or benefit. PERSONAL OR PRIVATE INTERESTS, PUBLIC DISCLOSURE: Any Councilmember who has a financial or other private or personal interest in any ordinance, resolution, contract, proceeding, or other action pending before the City Council or any of its committees, shall promptly disclose such interest at the first public meeting when such matter is being considered by the City Council, and a summary of the nature of such interest shall be incorporated into the official minutes of the City Council proceedings. Any Councilmember who feels disqualified by reason of such interest in any matter before the City Council, shall make a public statement and disclose the reasons why that Councilmember feels disqualified, and state that they are recusing themselves from the issue, and with permission of the Presiding Officer, will leave the Council Chambers until such time as the issue at hand has been disposed of in the regular course of business. Page 53 of 68 Appendix D: Frequently Used Acronyms AACE - American Association of Code Enforcement ADA - Americans with Disabilities Act ADT - Average Daily Traffic ATF - Bureau of Alcohol, Tobacco & Firearms AWC - Association of Washington Cities BOCC - Board of County Commissioners CAFR - Comprehensive Annual Financial Report CDBG - Community Development Block Grant CIP - Capital Improvement Plan CM - City Manager CM/AQ - Congestion Mitigation & Air Quality Program COVID-19 — CO=corona, VI=virus, & D=disease; 2019 novel coronavirus; infectious disease caused by severe acute respiratory syndrom coronavirus 2; WHO declared it as global pandemic March 2020 CTED - Community, Trade, & Economic Development (now Department of Commerce) CTR - Commute Trip Reduction (legislation) CUP - Conditional Use Permit DEIS - Draft Environmental Impact Statement DEM - Department of Emergency Management DNR - Department of Natural Resources DNS - Declaration of Non -Significance DOC — Department of Commerce DOE - Department of Ecology; Department of Energy DOT - Department of Transportation (also WSDOT) E911 - Enhanced 911 EA - Environment Assessment EDC - Economic Development Council EEO/AA - Equal Employment Opportunity/Affirmative Action EEOC - Equal Employment Opportunity Commission EIS - Environmental Impact Statement EOE - Equal Opportunity Employer EPA - Environmental Protection Agency ERU - Equivalent Residential Unit (for measuring water -sewer capacity and demand) ESU - Equivalent Service Unit (for measuring stormwater utility fees) Page 54 of 68 F & WS - Federal Fish & Wildlife Service FAA - Federal Aviation Administration FCC - Federal Communications Commission FEIS - Final Environmental Impact Statement FEMA - Federal Emergency Management Agency FICA - Federal Insurance Contribution Act FIRM - Flood Insurance Rate Maps FLSA - Fair Labor Standards Act FMLA - Family Medical Leave Act FMSIB — Freight Mobility Strategic Investment Board FY - Fiscal Year GAAP - Generally Accepted Accounting Principles GASB - Governmental Accounting Standards Board GIS - Geographic Information System GMA - Growth Management Act GPM - Gallons Per Minute HOV - High -Occupancy Vehicle HR - Human Resources HUD - Housing & Urban Development (Department of) ICMA - International City/County Management Association L & I - Labor & Industries (Department of) LID - Local Improvement District MGD - Million Gallons per Day MOA - Memorandum of Agreement MOU - Memorandum of Understanding MPO - Metropolitan Planning Organization MRSC - Municipal Research Services Center NEPA - National Environment Policy Act NIMBY - Not In My Backyard NPDES - National Pollutant Discharge Elimination System PE - Preliminary Engineering; Professional Engineer PERC - Public Employment Relations Commission PMS - Pavement Management System PPE - Personal Protective Equipment PPM - Parts Per Million; Policy & Procedure Manual PUD - Public Utility District Page 55 of 68 PW - Public Works QA - Quality Assurance RCW - Revised Code of Washington REET - Real Estate Excise Tax RONR - Robert's Rules of Order Newly Revised ROW - Right of Way SAO - State Auditor's Office SBA - Small Business Administration SEPA - State Environmental Policy Act SMA - Shorelines Management Act SWAC - Solid Waste Advisory Committee TIB - Transportation Improvement Board TIP - Transportation Improvement Program TMDL - Total Maximum Daily Load UBC - Uniform Building Code UFC - Uniform Fire Code UGA - Urban Growth Area WAC - Washington Administrative Code WACO - Washington Association of County Officials WCIA - Washington Cities Insurance Authority WCMA - Washington City/County Management Association WSDOT - Washington State Department of Transportation WSP - Washington State Patrol WUTC - Washington Utilities & Transportation Commission WWTP - Wastewater Treatment Plant Page 56 of 68 Spokane `� .Valley APPENDIX E CITY OF SPOKANE VALLEY 10210 E. Sprague Avenue Spokane Valley, WA 99206 (509) 720-5000 APPLICATION FOR INTERIM COUNCIL POSITION Thank you for your interest in serving the Spokane Valley community as an Interim Council Member. An Interim Council Member is the term used for someone to serve in a vacated council position until that vacated position can be filled as a result of the next general municipal election (held odd years) [RCW 42.12.070] To be considered, applicants must use this form. Applications shall be completed, signed, and received at the City Clerk's office, 10210 E. Sprague Avenue, no later than p.m. on (late arriving applications will not be considered). Applications may be hand - delivered or mailed. Faxed or e-mailed applications will not be accepted because the original application with the original signature must be received by the City. During the interview process, Current Councilmembers will ask applicants several questions on a variety of topical subjects, which could include but are not limited to: budget, pavement preservation, transportation, infrastructure, public safety, economic development, planning and development, open space, familiarity with Council meetings, Open Public Meetings Act, Public Records Act, and Council/Manager form of government. Name (please print): Complete Residence Address: Complete Mailing Address: (if different from above address): Length of time lived at current address: U.S. Citizen? [ ]yes [ ]no WA State Registered Voter? [ ]yes [ ]no If you have lived at your current address less than one year, please list your previous addresses and state how long you lived at those residences: Complete Previous Address Length of Time at this Address Which is your preferred way for us to contact you: [Note: If you have an unlisted phone number, or do not wish your e-mail address made public, do not include that information. Once this document is submitted to the City, it becomes subject to public disclosure.] [ ] Home Phone [ ] work phone [ ] Cell Phone [ ] other message phone [ ] e-mail address: (please print plainly): [ ] regular mail to residence or mailing address shown above Page 57 of 68 EMPLOYMENT: Start with most recent 1. [ ] present [ ] previous Name of Employer: Address: Phone: Position held: Dates of Employment: 2. [ ] present [ ] previous Name of Employer: Address: Phone: Position held: Dates of Employment: 3. [ ] present [ ] previous Name of Employer: Address: Phone: Position held: Dates of Employment: EDUCATION: Name of High School Diploma or GED: [ ] yes Address: [ ] no Trade School/College/University: Name of School Diploma: [ ] yes [ ] no Trade School/College/University: Name of School Diploma: [ ] yes [ ] no Other Certifications/Licenses: Address: Degree or Certification Earned: Address: Degree or Certification Earned: VOLUNTEER EXPERIENCE: name of social, fraternal, organizations, etc. 1. [ ] current [ ] previous 2. [ ] current [ ] previous 3. [ ] current [ ] previous 4. [ ] current [ ] previous 5. [ ] current [ ] previous LOCAL, STATE OR NATIONAL PROFESSIONAL ORGANIZATIONS, INCLUDING GOVERNMENT BOARDS, COMMITTEES, OR COMMISSIONS 1. [ ] current [ ] previous 2. [ ] current [ ] previous 3. [ ] current [ ] previous 4. [ ] current [ ] previous 5. [ ] current [ ] previous 1. Are you a registered voter in the City of Spokane Valley? Yes [ ] No [ ] Page 58 of 68 2. Have you continuously resided within the city limits of the City of Spokane Valley for a year or more? (State law requires a councilmember to be a resident of Spokane Valley for at least a year prior to appointment, and to be a registered voter at the time of application.) Yes [ ] No [ ] 3. Have you ever been convicted of anything other than a minor traffic infraction? Yes [ ] No [ ] 4. If you answered "YES" to #3 above, please explain: 5. Do you or your spouse or any immediate family member (spouse, children, siblings, parents) have a financial interest in, or are you an employee or officer of any business or agency which does business with the City of Spokane Valley? Yes [ ] No [ ] If yes, please explain: 6. Is any member of your immediate family currently employed, either full time or part time, by the City of Spokane Valley, or currently perform any volunteer work for the City of Spokane Valley? Yes[ ] No[ ] If yes, please explain: 7. Would your appointment create a conflict of interest or an appearance of a conflict of interest? Yes[ ] No[ ] If yes, please explain: 8. Why are you interested in serving in this position? 9. What do you feel is the primary responsibility of a Councilperson? 10. Have you ever attended a live meeting of the Spokane Valley City Council? Yes [ ] No [ ] If yes, give an estimate of how many meetings you have attended in the past twelve months: 11. Appointment to the City Council will require your attendance at regularly scheduled Council meetings, which generally occur on Tuesday evenings, as well as other special meetings that may be scheduled from time to time. This meeting commitment includes preparation time, such as reading the Council packet materials. Councilmembers also participate on various boards and committees (such as STA, Visit Spokane, Health Board, etc.) as assigned by the Mayor and confirmed by Council. Many of these groups meet during regular work hours. Can you commit the appropriate time and energy to participate as an interim member of the Spokane Valley City Council. Yes [ ] No [ ] Page 59 of 68 12. References: Please list name, address and phone number: 1. 2. 3. Once submitted, applications and related materials become a public record subject to public disclosure, and could be included in Council agenda packets. Selection of the applicant must be approved by a majority vote of the remaining Councilmembers. No City officer shall hold any other office or employment within the Spokane Valley City government. By signing this application, I certify under penalty of perjury, that such appointment would not represent a conflict of interest or an appearance of a conflict of interest; that I recognize this application is subject to public disclosure; and that the information entered hereon by me is true and correct to the best of my knowledge and belief. Signature Date Signed Page 60 of 68 Spokane . Valley APPENDIX F CITY COUNCIL 10210 E Sprague Avenue ♦ Spokane Valley WA 99206 Phone: (509) 720-5000 • Fax: (509) 720-5075 • www.spokanevalley.org Request to Transfer Travel/ Registration Budgets Transfer from Councilmember's name Account number Amount Signature Date Transfer to Councilmember's name Account number Amount Signature Date Page 61 of 68 Appendix G: Definitions Action: All transactions of a governing body's business, including receipt of public testimony, deliberations, discussions, considerations, reviews, and evaluations, as well as "final" action. [RCW 42.30.010, 42.30.020(3)]. Codified: The process of forming a legal code (i.e., a municipal code or book of laws) by collecting and including the laws of a jurisdiction or municipality. Consensus: A collective judgment or belief; solidarity of opinion: "The consensus of the group was that they should meet twice a month. General agreement or harmony. [Random House Webster's College Dictionary, April 2001] [Wikipedia: explains it as a group decision making process, or Does anyone object?] It is not unanimity, but more a process for deciding what is best overall. Members of the group reach a decision to which they consent because they know it is the best one overall. It differs from voting which is a procedure for tallying preferences. It does not require each member of the group to justify their feelings. [Taken from: Consensus Is Not Unanimity: Making Decisions Cooperatively, by Randy Schutt. '7 Similar to a type of verbal "show of hands" on who feels particularly strong on this?" Sometimes thought of as preliminary approval without taking final "action." A show of hands is not an action that has any legal effect. ["Voting and Taking Action in Closed Sessions" by Frayda Bulestein.] Ex-parte: from a one-sided or partisan point of view; on the application of one party alone. An ex- parte judicial proceeding is conducted for the benefit of only one party. Ex-parte may also describe contact with a person represented by an attorney, outside the presence of the attorney. Immediate Family: includes a spouse or domestic partner, dependent children, and other dependent relatives, if living in the household. For the purposes of the definition of "intermediary" in this section, "immediate family" means an individual's spouse or domestic partner, child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half-sister of the individual and the spouse or the domestic partner of any such person and a child, stepchild, grandchild, parent, stepparent, grandparent, brother, half-brother, sister, or half-sister of the individual's spouse or domestic partner and the spouse or the domestic partner of any such person (RCW 42.17A.005(24)). Motion: An enacted motion is a form of action taken by the Council to direct that a specific action be taken on behalf of the municipality. Once approved and entered into the record, is the equivalent of a resolution in those instances where a resolution is not required by law, and where such motion is not in conflict with existing state or federal statutes, City ordinances or resolutions. Ordinance: An enacted ordinance is a law passed [enacted] by a municipal organization legislatively prescribing specific rules of organization or conduct relating to the corporate affairs of the municipality and those citizens and businesses therein. Council action shall be taken by ordinance when required by law, or where prescribed conduct may be enforced by penalty. Special ordinances such as adopting the budget, vacating a street, amending the Comprehensive Plan and/or Map, and placing a matter on an election ballot, including general obligation bonds, are not codified into the City's municipal code. Resolution: An enacted resolution is an administrative act which is a formal statement of policy concerning matters of special or temporary character. Council action shall be taken by resolution when required by law and in those instances where an expression of policy more formal than a motion is desired. Regular Meeting: Any Council meeting that meets in the Spokane Valley City Council Chambers on Tuesday at 6:00 p.m. shall be deemed a "regular meeting." Social Media: A term used to define the various activities that integrate technology, social interaction and content creation. Through social media, individuals or collaborations of individuals create on-line web content, organize content, edit or comment on content, combine content, and share content. Includes many technologies and forms including syndicated web feeds, weblogs (blogs), wiki, photo -sharing, video -sharing, podcasts, and social networking. (From MRSC, and Social Media and Web 2.0 in Government, WebContent.gov) Page 62 of 68 Absences • 18 Acceptance of Gifts: • 52 ad hoc committees • 47 Advance Agenda • 16, 21 affirmative motion • 22 amended agenda • 10, 13, 15 applause • 17, 29 applications • 29, 34, 35 attendance • 42 INDEX Finance Committee • 47 Finance Department • 36 fiscal restraint • 28 flip of a coin • 33 8 ballot • 17, 33, 35, 38, 39, 61 bias • 24, 25 budget amendment • 24, 26 Cancellation of Meetings: • 16 candidate • 14, 35 City Manager • 3, 6, 9, 10, 12, 15, 16, 18, 19, 20, 21, 22, 24, 25, 26, 28, 30, 33, 36, 41, 42, 47, 50, 51, 53 coin flip • 36 Community Recognition Program 27 complaint • 41 Confidential material • 20 Conflict of interest • 24 Core Beliefs • 3, 4 D dais • 12, 20, 30, 35 deadline • 34 Demonstration • 17 E election • 33, 34, 36, 38, 61 electronic message • 18, 20 e-mail • 18, 20, 39 emergency • 10, 13, 15, 20, 24, 26, 30, 66 Emergency • 2, 16, 20, 53, 54, 66 ethical • 52 executive session • 13, 14, 15, 34, 35, 47 executive sessions • 14, 15, 31 F Filling a Council Vacancy • 34 H hearings • 28 holiday • 9 1 impractical • 15, 16, 31 informal contacts • 43 Internet • 18, 20 L leave of absence • 18, 19 M majority of the whole • 24, 26 Majority Plus One • 24, 26 majority vote • 6, 9, 12, 19, 22, 23, 26, 29, 33, 45, 46 maker of the motion • 21, 22, 23 misleading • 12 N nomination • 33, 34, 35 notice • 9, 15, 18, 20, 30, 38, 51, 66 0 Open Public Meetings Act • 5 9 12 13 20 41 56 66 out of order • 17, 21, 23, 28 Outside Requests • 12 P parliamentarian • 18 podium • 10, 17, 20, 28, 29 Pre -Agenda • 2 16 presentations • 9, 12, 17, 29 prevailing side • 29, 30 Public Comment • 39 public comments • 10, 17, 18, 21, 28, 29 Public Records Act: • 5 Page 63 of 68 Q qualifications • 14, 34 quasi-judicial • 17, 20, 30, 49, 50 quorum • 5, 6, 18, 19, 24, 66 R rearrange • 9, 13 recommended appointment • 45 reconsideration • 29, 30 recuse • 24, 25 Removal • 45, 46 Request for Council Action • 30 seats • 18 social media • 41, 61 speak twice •22 special meeting • 13, 15, 16, 26, 34, 35 surprise • 12 surprises • 12, 22, 30 T table • 23, 29 Absences 17 Acccptancc of Giftc.. 59 Advance Agenda 16, 20 affirmative motion 20 amended agenda 10, 13, 16 applause • 11, 2& applications 28, 33, 31 attendance 11 8 ballot - 11, 32, 31, 37, 38, 60 bias -23,21 budget amendment • 23, 25 Cancellation of Meetings: 16 candidate - 11, 31 coin flip - 35 Table • 2, 23 tax • 28, 46 telephone • 19, 20, 41 three minutes • 17, 21, 28 Three Touch • 25, 30, 31 Three -Touch • 10, 13 tie •24,33,36 travel • 36 U unexcused absence • 18, 46 Unexpected Motions • 12 unusual circumstances • 25, 31 vacancy • 33, 34, 35, 36, 47 video • 19, 20, 42, 61 vote to extend the meeting • 12, 13 w waived • 9, 24, 26 withdraw the motion • 23 written comments • 17, 18, 29 Community Recognition Program 26 complaint 10 Confidential material 19. Conflict of interest - 23 dais 12, 19, 29, 31 d Aline • 33 Demonstration 11 election - 32, 33, 35, 37, 60 electronic message 11, 1& c mail 11, 19, 37 emergency • 10, 13, 15, 19, 23, 25, 29, 63 Emergency 2, 16, 19, 52, 53, 63 ethical 51 executive ses..ion - 11, 15, 33, 31, 16 executive sessions • 11, 15, 30 Page 64 of 68 Pilling a Council Vacancy 33 Fi-nance Committee • 16 finance Department 35 fiscal restraint • 27 flip of a coin 32 bearings 27 holiday 9 impractical 15, 16, 30 . fo of ntoct� 12 Internet 12, 18, 19 leave of absence 17, 18 A4 majority of the whole 23, 25 Majority Plus One 23, 25 majority vote 6, 9, 12, 17, 20, 22, 25, 28, 32, 11, 15 maker of the motion • 20, 21, 22 misleading - 13 N nomination 32, 33, 31 notice 9, 15, 17, 18, 29, 37, 50, 63 Public Records Act: 5 quasi judicial 11, 18, 29, 18, 19 quorum 5, 6, 17, 18, 23, 63 rearrange - 10, 13 recommended appointment • 11 reconsideration 28, 29 recusc - 23, 21 gem -eye I 41, 15 Request for Council Action • 29 scuts 17 social media 10, 60 speak twice 21 special meeting - 11, 15, 16, 25, 33, 31 surprise - 13 surprises 13, 21, 29 table 22, 28 Table 2, 7, 22 tax •27,15 telephone 18, 10 three Councilmembcrs - 10, 13 three minutes 11, 20, 27 Thrcc Touch • 21, 29, 30 Thrcc Touch - 10, 13 tic -23,32,35 travel - 35 0 Open Public Meetings Act 5, 6, 9, 13, 11, 19, 10, 55, 63 out of order 11, 19, 22, 27 Outside Requests - 13 p parliamentarian 17 podium 11, 12, 19, 20, 27, 28 Prc Ag cnda 2, 16 presentations • 10, 11, 13, 28 prevailing side 28, 29 Public Comment - 3g public comments 11, 12, 20, 27, 28 unexcused absence 17,15 Unexpected Motions - 13 unusual circumstances - 21, 30 vacancy - 32, 33, 31, 35, 16 video 18, 11, 60 vote to extend the meeting • 12, 11 Page 65 of 68 w waived 10, 23, 25 withdraw the motion 22 written comments • 11, 28 Page 66 of 68 Endnotes: 1 RCW 42.30.110 — Open Public Meeting Act, Executive Sessions 2 RCW 42.30.140- Open Public Meeting Act, RCW 35A.13.035- Optional Municipal Code (35A) — Council-manager plan of government 4 RCW 42.52 — Ethics in Public Service RCW 42.56 — Public Records Act 6 RCW 35A.12.160 Optional Municipal Code (35A) — Council manager plan of government; public notice of hearings and meeting agendas RCW 35A.13.170 — Optional Municipal Code (35A) — Council manager plan of government; council meetings — quorum, rules - voting 8 RCW 35A.12.110 — Council meetings shall meet regularly, at least once a month. RCW 42.30.080 — Open Public Meetings Act, Special Meetings, procedures for calling Special Meetings 1° RCW 35A.12.110 — Council meetings shall meet regularly, at least once a month. 11 RCW 42.30.080 - Open Public Meetings Act, Special Meetings, procedures for calling Special Meetings 12 RCW 42.30.080(3) — Open Public Meetings Act, Special Meetings, procedures for calling Special Meetings 13 RCW 42.30.090 — Open Public Meetings Act, Adjournments 14 RCW 35A.13.170 - Optional Municipal Code (35A) — Council mgr plan of gov't; meetings: quorum, rules, voting is 35A.12.120 — Council meetings, shall meet regularly, at least once a month 16 RCW 35A.12.060 — A council position shall become vacant if the councilmember fails to attend three consecutive regular meetings of the council without being excused by the council. 17 RCW 42.17A.555 — Use of public office or agency facilities in campaigns — Prohibition — Exceptions 18 RCW 35A.12.120 — Council — Quorum— Rules — Voting 19 RCW 35A.33.090 — Emergency Expenditures — Other emergencies — Hearing. zo RCW 35A.13.190 — Ordinances, emergencies, may be effective upon adoption if passed by a majority plus one of the whole membership of the council and have the ordinance designated as a public emergency; but such ordinance may not levy taxes, grant, renew or extend a franchise, or authorize the borrowing of money. 21 RCW 35A.13 - Council-manager plan of government. zz RCW 35A.47.040 — Franchises and permits — "no ordinance or resolution granting any franchise in a code city . . shall be adopted or passed by the city's legislative body on the day of its introduction nor for five days thereafter, nor at any other than a regular meeting ... nor without having been granted by the approving vote of at least a majority of the entire legislative body. 23 RCW 35A.13.170 —passage of a franchise ordinance 24 RCW 35A.33.090 — Emergency Expenditures — Other emergencies — Hearing. Page 67 of 68 25 RCW 35A.13.190 — Ordinances, emergencies, may be effective upon adoption if passed by a majority plus one of the whole membership of the council and have the ordinance designated as a public emergency; but such ordinance may not levy taxes, grant, renew or extend a franchise, or authorize the borrowing of money. 26 RCW 35A.13.030 - Mayor — election — chair to be mayor — duties: Biennially at the first meeting of the new council members shall choose a chair from among their number; chair's title shall be mayor and preside at meetings. 27 RCW 35A.13 — Council-manager plan of government. 28 RCW 35A.13.020 — Mayor — election, chair to be mayor, duties 29 RCW 42.12.070 — Filling nonpartisan vacancies 3° RCW 42.04.020 — Eligibility to hold office. That no person shall be competent to qualify for or hold any elective public office within the state of Washington ... municipal corporation or other district, ... unless he or she be a citizen of the United States and state of Washington and an elector of such county, district, precinct, school district, municipality or other district or political subdivision. 31 RCW 35A.13.080 — City manager powers and duties 32 RCW 35A.13.120 — city manager — Interference by councilmembers 33 RCW 42.36.040 — Public discussion by candidate for public office 34 RCW 42.17A.005 — `compensation' includes payment in any form for real or personal property or services of any kind 35 RCW 42.23.070 — `prohibited acts' — no municipal officer may, directly or indirectly, give or receive or agree to receive any compensation, gift, reward, or gratuity from a source except the employing municipality, for a matter connected with or related to the officer's services as such an officer unless otherwise provided for by law. Page 68 of 68 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: June 2, 2020 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Community Development Block Grant (CDBG) Requalification GOVERNING LEGISLATION: Community Development Block Grant Program (CDBG) — Federal Department of Housing and Urban Development (HUD) 24 CFR § 570; Chapter 39.34 RCW PREVIOUS COUNCIL ACTION TAKEN: May 30, 2017 the City entered into a three-year agreement (2018, 2019 and 2020) to participate in the Spokane County CDBG/HOME Consortium; April 7, 2020 Admin Report to Council; April 28, 2020 Admin Report to Council. BACKGROUND: On April 7, 2020, the City Council reviewed four options related to the City's participation in the CDBG program. After review of the four options, the City Council asked staff to contact Spokane County about the feasibility and logistics of entering into a joint agreement should the City chose to accept its entitlement. The City Council also concluded at the April 7 meeting that it was not interested in pursuing option 1 or option 3. On April 28, 2020, staff presented an overview of the discussions with Spokane County regarding becoming our own entitlement and entering into a joint agreement where the County would administer the City's program on our behalf. The key takeaway from the discussion is that a joint agreement would require a duplication in services and would result in increased administrative costs to oversee both programs. The duplications include: • The City would be required to produce and maintain a Consolidated Plan (5 year updates) • The City would be required to update an Annual Action Plan. • The City would be required to form and populate an advisory committee to review and process CDBG applications. • The City would be required to conduct applicant workshops. • The City would be responsible for financial reporting and responding to audits. • The County would still have oversight and administrative responsibilities as a joint participant. After discussions with Spokane County, it appears that a joint agreement is not appealing to Spokane County considering it would result in more staff resources to administer the program. Essentially, there are economies of scale that are obtained when participating as part of the urban county. Staff also shared the discussions about increasing the City's presence in the consortium. This included options for expanding how the City participates in the selection and funding processes conducted by the County through Community Services, Housing, and Community Development Division. A few other discussion points included: • Increase the consortium visibility on materials • Increase the number of Spokane Valley representatives on the advisory board • Increase the City's set -aside Council directed staff to collaborate with Spokane County to incorporate these possibilities into a revised cooperation agreement. Staff worked with representatives from Spokane County Housing and Community Services Division to discuss modifications to the cooperative agreement. Provided below is summary of the cooperative discussion regarding considerations for the City's continued participation in the Urban County Consortium. Page 1 of 7 Increase Identification Include all of the participating Cities and Towns Logo's and Mayors on pertinent documents. Create a web page on the County HCD site devoted specifically to Urban County Consortium members to include a brief description, logos and mayors from all participating Cities and Towns. Increase HCDAC Representatives Increase the number of Spokane Valley HCDAC representatives from 3 to 4 mayoral appointed members based on the city meeting the population threshold as per the current HCDAC by-laws. Note: This change would not be effective until the city population reaches 100,000 determined by the Office of Financial Management (OFM). Increase CDBG Set -aside Increase the set -aside from 20% to a higher percent based on April 2020 OFM April 1st population estimates. (released in June 2020). The April 2020 OFM population estimate is 99,703 which increases the set -aside to 39% resulting in an estimated award of $648,736. Under this agreement, the set -aside would be not be limited to city infrastructure projects but inclusive of all CDBG awarded projects or activities providing services to COSV residents to include: Infrastructure (including water districts located in the COSV); Public Services; Single Family Rehab; and other eligible activities. These applications would be subject to the competitive award process. Note: This change would not be effective until the 2022 Program Year as the current City's set aside of 20% would remain in place the 2020 and 2021 PY's for the Barker Road Sewer Connection Assistance Program. CDBG Preliminary Funding Award Process Allow the City Council to weigh in on CDBG applications for projects or activities serving City residents. To facilitate this process, authorized City staff would have access to applications through the Spokane County Neighborly Portal for the purpose of viewing applications and preparing a list of projects and proposed funding amounts for presentation to the City Council for recommendations of support. These recommendations would be presented to the HCDAC by the COSV representatives during the preliminary allocation meeting in January. Note: This proposed change would not be effective until the 2022 Program Year as the current COSV set aside of 20% would remain in place the 2020 and 2021 PY's for the Barker Road Sewer Connection Assistance Program. HOME Affordable Housing Program Award Process The Affordable Housing Program of Spokane County uses federal Home Investment Partnership (HOME) dollars and local recording fee dollars to further affordable housing in the Consortium. The HOME funds are based on a federal formula similar to CDBG. The recording fees for the program were authorized by Substitute House Bill 2060. In an effort to allow the City Council to weigh in on HOME applications for affordable housing developments located in the City, County HCD staff will forward HOME applications to City staff for the purpose of preparing a presentation to the City Council for a letter(s) of support. The letter(s) of support would be provided to County HCD staff to be presented along with the staff review(s) to the HCDAC during the Affordable Housing Program allocation meeting. Page 2 of 7 Following the April 28, 2020 Council meeting, additional thoughts and considerations regarding CDBG funding were raised. These additional considerations are being shared here including brief responses to those considerations. 1) Comparing CDBG allocation process to that of the LTAC Tourism funding. While the hotel - motel tax and the CDBG program both require recommending committees, these programs and their requirements are very different. The table below compares the two programs. Program Element Hotel -motel Tax CDBG No Formal Plan Required Yes — A multi -year plan is required to be developed with public input including: an assessment of Community Needs, a Housing Market Analysis and a Strategic Plan. The plan must be approved by HUD. No Compliance with Federal Regulations Governing Grant Administration Yes — The community (and its sub - recipient agencies) must adhere to federal regulations related to financial management and procurement requirements, environmental review requirements, federal labor standards, and fair housing standards for all funded and partially -funded projects. Also, the grantee is responsible for subrecipient monitoring for any agencies that receive pass through Federal dollars. Establishing and Administering a Competitive Grant Application Process Yes — A recommending committee is required. The committee must be composed of at least five persons appointed by City Council (two businesses collecting the lodging tax, two people involved in activities funded by this tax, and one elected city official who serves as chair). This committee generally only meets once per year. Yes — A recommending committee is required. The committee must be composed of appointed citizens and local professionals who either have specialization in grant administration or experience in serving low- and moderate -income populations. The number can vary. Some communities have two committees one for public service grant applications and one for capital and economic development grant applications. This committee generally meets 7 times a year. Annual Reporting Yes- Annual report of lodging tax expenditures including information about expenditures of lodging tax revenue and information about the projects funded as well as the impact on visitors to the City. Yes - The entitlement community is responsible for collecting performance data, compiling data, and imputing data to HUD on all individual projects and expenditures. Page 3 of 7 Program Element Hotel -motel Tax CDBG Financial Reporting Same report as listed under Annual Reporting. Responsible for all the accounting and financial management for all projects including: - submitting quarterly cash transaction reports to HUD - complying with audit requirements - monitoring expenditures - tracking program income and recaptured funds Audits Auditing of the lodging tax program falls within the City's regular annual financial and accountability audits by the State Auditor's Office. The City is responsible for any state or federal audit findings. A federal single audit is required to be completed by the State Auditor's Office annually. HUD conducts annual performance and financial review of CDBG program. The City would be responsible for reviewing subrecipients for compliance. Level of City Staffing City staff involved in the lodging tax award process are the Finance Director, the Deputy City Attorney, an Accountant, and an Accounting Technician. Activities are carried out only once per year for the grant award process and reporting while they are ongoing for grant reimbursements through the City's regular accounts payable process. It is estimated that it would take an additional 2-3 FTEs with experience in CDBG to administer the program. Additional staff time from finance would be required for quarterly reporting, subrecipient monitoring, and the grant award process as well as updates to the formal multi -year planning process. Funds Available for Administration No Yes — The CDBG program allows up to 20% of entitlement allocation to administer the program. Page 4 of 7 Program Element Hotel -m otel Tax CDBG Monitoring and Compliance The City is responsible for the accuracy of expense data and is required to submit this data to the state, but the state does not independently verify the information. The City would be responsible to HUD staff for demonstrating compliance with the CDBG program. Non- compliance can result in findings and other penalties such as repayment. HUD conducts regular monitoring visits which include in-depth analysis of the grant funds (similar to an audit) to ensure that the program is being conducted properly and in accordance with the CDBG Program Rules. The City would be responsible for monitoring the compliance of any subrecipients who are passed through CDBG dollars. 2) The estimate of staff expected to administer a CDBG program is based on a combination of the results of a January 2014 HUD CDBG entitlement analysis prepared by Van Ness Feldman and comparing other jurisdictions in Washington with similar characteristics and size. Based on this analysis Spokane Valley could reasonably expect to employ an additional two to three full-time staff members to administer the grant, which may include a program administrator/director and program specialist(s). Currently, Spokane County has 4.5 FTEs and the City of Spokane has 18 FTEs to manage community services programs which include more than CDBG. 3) History of CDBG allocations within the City compared to funding we could potentially receive as our own entitlement. As our own entitlement, HUD estimates the City would receive approximately $650,000. Using the federal funding limits, the City may expect the following: $130,000 for administration (20%); $97,500 Human Services (15%); and $422,500 Capital Projects (65%). If the City used the total amount available for administration, the City would have $520,000 to allocate to sub -recipients. Since 2006 when the City joined the Consortium, the average amount of CDBG dollars allocated within the City has been $538,000. The chart below shows the history of CDBG allocations that can be attributed to the City or partners within the City. The chart is based on tables included in the letter from the County on January 31, 2020 (attached). It is important to note that other countywide human services like Lutheran Community Services, New Hope Resource Center, Salvation Army, Second Harvest, Northwest Fair Housing, Alliance Greater Spokane County Meals on Wheels may be used by City residents, and are not included in these dollars. Comparatively, the lodging tax award process had awarded an average of about $500,000 per year to an average of 9 applicants per year since 2003. Recent years' awards exceeded these averages due to the positive economic conditions experienced by the City during that time. Page 5 of 7 $900,000 60% $8a0,0ao $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $too 000 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 no City Infrastuctur? Aw cf moo Partner Annear ris—?OO5.7019 Ave ra ,P r Cnnsortiurn Tatal 50% 40% 30% 20% 10% 4) HOME or HHAA dollars allocated to the City. On March 26, 2019 the funding options that are available for homelessness was presented to City Council, which included both the HOME and the HHAA programs. It is important to recognize these are two separate programs, but because of their close linkages to helping low and moderate income groups are often managed by the same department. Since the April 28, 2020 City Council meeting, staff has been able to confirm that the City does not qualify for the HOME program by speaking with Christina Yamamoto, Senior Community and Planning Representative from HUD's Seattle Regional Office. The HOME formula includes: age of housing units, substandard occupied units, number of families below poverty rate, and population. Using this formula it was determined that the City is not eligible for HOME funds. As presented at the March 26, 2019 City Council meeting, a portion of HHAA funds could be directly allocated to the City. In order to access the HHAA fund, the City would need to create a homeless housing task force and a five-year homeless housing plan for its jurisdictional area consistent with statewide guidelines. The presentation also identified that the City may have been eligible for $550,000 in recording fees in 2019 if it ran its own program. The table below shows the projects within Spokane Valley that have used HOME and HHAA funds. Year Project Amount Awarded 2006 Catherine Johnson Ct Apts $700,000 2008 Appleway Court Apts $500,000 2009 Rockwell Apts $1,649,692 2012 Appleway Court II Apts $683,000 2012 Rockwell Apts Rehab $167,921 20191 Aspen Grove $652,444 20191 Mirabeau Townhomes $600,000 20191 Mirabeau Place $850,000 Total $5,803,057 1 2019 projects are recommendations by the HCDAC and have not been awarded Page 6 of 7 Tonight, staff will discuss a revised cooperation agreement for the City's continued participation in the Spokane County Consortium and the additional consideration regarding becoming its own entitlement. If Council chooses to continue the partnership with the Spokane County Consortium we can monitor the new provisions and process through the 2021-2023 timeframe. Based on the revised cooperation agreement continuing with the Spokane County Consortium maximizes the distribution of federal funds within City while minimizing administrative costs throughout the region. RECOMMENDED ACTION OR MOTION: Discussion. BUDGET/FINANCIAL IMPACTS: As noted above. STAFF CONTACT: Mike Basinger, AICP — Economic Development Manager ATTACHMENTS: PowerPoint; Spokane County Resolution 20-0366 and Cooperation Agreement for CDBG and HOME Funds; January 31, 2020 Requalification Letter; January 2014 Van Ness Feldman Memorandum Regarding "Planning Analysis of becoming a HUD CDBG entitlement community" Page 7of7 NO.20366 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF SPOKANE COUNTY, WASHINGTON APPROVING A SET -ASIDE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ENTITLEMENT FUNDS FOR FEDERAL FISCAL YEARS 2021, 2022, AND 2023 TO THE CITY OF SPOKANE VALLEY AS A CONDITION OF PARTICIPATING IN SPOKANE COUNTY'S REQUALIFICATION AS AN URBAN COUNTY RESOLUTION WHEREAS, the Board of County Commissioners of Spokane County, pursuant to the provisions of RCW, Section 36,32.120(6) has the care of County property and the management of County funds and business; and WHEREAS, the United States Department of Housing and Urban Development (HUD) has the authority to make available to counties, funds for community development purposes pursuant to various federal laws including CFR Title 24, Chapter V, Part 570 CDBG (Community Development Block Grants); and, HOME Investment Partnership Program, under 24 CFR Section 92.150; and WHEREAS, Spokane County has been notified by HUD that Urban County requalification is necessary for the award of 2021 through 2023 CDBG and HOME Investment Partnerships (HOME) funding; and WHEREAS, the amount of CDBG funds to which the County may be entitled is in part dependent upon the population of the other CDBG eligible cities and towns which elect to participate in the CDBG and HOME Entitlement Programs with Spokane County; and WHEREAS, pursuant to the level of CDBG funds appropriated to HUD, Spokane County intends to establish a set -aside based on Washington States Office of Financial Management (OFM) 2020 Population Estimate; and WHEREAS, the City of Spokane Valley and the Community Services, Housing and Community Development (CSHCD) Department, have agreed to implementing additional administration improvements, including Interlocal Agreement revisions, adding participating cities and towns logos on all CDBG plans and other related documents, and the coordination of CDBG and HOME projects being considered for funding with key staff; and NOW, THEREFORE, BE IT HEREBY RESOLVED, by the Board of County Commissioners of Spokane County that the City of Spokane Valley's request to establish a set -aside within the CDBG Program is approved. BE IT FURTHER RESOLVED, that this resolution constitutes authority for the Chair of the Board, or a majority of the Board of Spokane County Commissioners, the Chief Operating Officer, the Chief Budget Officer, or the Chief Executive Officer, in other than an open meeting, to agree and are authorized to approve to the set -aside request for federal fiscal years 2021, 2022, and 2023 for the City of Spokane Valley. Page 1 of 2 PASSED AND ADOPTED this 2io tday of , 2020. ATTEST: na Vasquez, Clerk of the B Page 2of2 BOARD OF COUNTY COMMISSIONERS OF SPOKANE COUNTY, WASHINGTON )- Al French, C1 ar( osh Kerns, Vice -Chair Mary L. Commissioner DRAFT COOPERATION AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT AND RELATED FUNDS (HOME, AHTF, HHAA) THIS AGREEMENT, made and entered into by and between Spokane County (hereinafter called the County) and the City of Spokane Valley (hereinafter called the City) this day of , 2020. WITNESSETH WHEREAS, pursuant to Title 1 of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, Section 109 of Title I of the Housing and Community Development Act of 1974 and other applicable laws, Spokane County is entitled to receive Community Development Block Grant (CDBG) funds for federal fiscal years 2021, 2022,.and 2023; and WHEREAS, the amount of CDBG funds to which the County may be entitled is in part dependent upon the population of other CDBG eligible applicant cities and towns which by this Agreement elect to participate in the CDBG and HOME Entitlement Program with the County; and WHEREAS, the purpose of this Cooperation Agreement, which is entered into pursuant to, and in accordance with the State Interlocal Cooperation Act, RCW 39.34 is to plan for, and administer the CDBG Program and the HOME Investment Partnership Program (HOME). NOW, THEREFORE, in consideration of the mutual promises made herein and the mutual benefits received hereunder, the parties agree as follows: 1. The City may not apply for grants under the Small Cities or State CDBG Programs from appropriations for fiscal years 2021, 2022, and 2023, the years during which the City is participating in the Spokane County CDBG and HOME Program. 2. The City may not participate in a HOME consortium except through Spokane County, regardless of whether Spokane County receives a HOME formula allocation. 3. The Spokane County urban county qualification period is federal fiscal years 2021, 2022, and 2023. 4. This Agreement remains in effect until the CDBG and HOME funds and income received for federal fiscal years 2021, 2022, and 2023 are expended and the funded activities are completed. The County and the City may not terminate or withdraw from this Agreement while the Agreement remains in effect. 5. The County and the City agree to cooperate to undertake, or assist in undertaking, community renewal and lower -income housing assistance activities. 6. The County and the City will take all actions necessary to assure compliance with the urban county's certification under section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, regarding Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and affirmatively furthering fair housing. This includes the obligation to comply with section 109 of Title I of the Housing and Community Development Act of 1974, which incorporates Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1975, as well as obligation to comply with other applicable laws. DRAFT 7. The County will not use CDBG or HOME funding for activities in, or in support of a City that does not affirmatively further fair housing within the City's jurisdiction or that impedes the County's actions to comply with the County's fair housing certification. 8. The City has adopted and is enforcing: a) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and, b) a policy of enforcing applicable State and local laws against physically barring entrance to, or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within jurisdictions. 9. The County and the City will not obstruct the implementation of the approved Consolidated Housing and Community Development Plan and subsequent Annual Action Plan(s) during the period covered by this Agreement. 10. The County will establish a City set -aside based on Washington States Office of Financial Management (OFM) 2020 Population Estimate pursuant to the level of CDBG funds appropriated to HUD; and 11. The County and the City have agreed to implement additional administration improvements, including, adding participating cities and towns logos on all CDBG plans and other related documents, and allowing key City staff access to applications for CDBG and HOME projects being considered for funding within the City for the purpose of viewing applications and preparing a list of projects and proposed funding amounts for presentation to the City Council for recommendations of support. These recommendations will be presented to the Spokane County Housing and Community Development Advisory Committee (HCDAC) by City HCDAC representatives during the preliminary allocation meeting in January; and 12. The County has final responsibility for selecting CDBG and HOME activities and annually filing the Consolidated Housing and Community Development Annual Action Plan and the Consolidated Annual Performance and Evaluation Report with the U.S. Department of Housing and Urban Development. 13. The County and City are subject to the same requirements applicable to CDBG subrecipients, including the requirement of a written agreement set forth in 24 CFR 570.503. 14. The County and City may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non -Federal considerations, but must use such funds for activities eligible under title 1 of the Act. 15. The City agrees to participate in the Regional County Homeless Program and Regional Affordable Housing Trust Fund Program, both which authorize the HCDAC to serve as the regional body for reviewing proposals, initiatives, and making funding recommendations for Affordable Housing Trust Fund (2060) and Homeless Housing Assistance Act (HHAA - 2163, 1359, and 2331) activities. 16. The HCDAC will review CDBG, HOME, Affordable Housing Trust Fund (2060), and Homeless Housing Assistance Act (HHAA - 2163, 1359, and 2331) program policies, plans, and applicant funding proposals and recommend to the Board of County Commissioners funding of applicant proposals. 17. The HCDAC will include a minimum of one representative appointed by the Mayor of the City and approved by the Spokane County Board of Commissioners. Additional representatives will DRAFT be added based on the Washington States Office of Financial Management (OFM) Population Estimate, pursuant to the HCDAC By -Laws. This Agreement is entered into on this day of , 2020 by: City of Spokane Valley Spokane County Mark Calhoun City Manager Al French Chair, Spokane County Board of Commissioners Spokane County W A S I I I I I U 7 O N COMMUNITY SERVICES, HOUSING, AND COMMUNITY DEVELOPMENT DEPARTMENT Kathleen Torella, Director January 31, 2020 Mr. Mark Calhoun City Manager City of Spokane Valley 11707 East Sprague Avenue, Suite 106 Spokane Valley, WA 99206 Dear Mr. Calhoun: Spokane County has participated in the U.S. Department of Housing and Urban Development's (1-IUD) Community Development Block Grant (CDBG) entitlement program since 1988 and in the HOME entitlement program since 1991. Every three years, HUD requires Urban County Consortiums, such as Spokane County, to re -qualify. Currently, Spokane County is scheduled to re -qualify in 2020 for fiscal years 2021, 2022, and 2023. The City of Spokane Valley has been a member of the Spokane County Urban Consortium since 2006. I have enclosed a list of the projects for which past CDBG funds have been used in Spokane Valley. The annual average of CDBG funds Spokane Valley has received is $735,232, for a grant total of $10,293,243 since fiscal year 2003. During the re -qualification period, the City must select one of the following four (4) options with regard to its participation in the CDBG program: 1. Accept status as an entitlement grantee and receive a direct annual formula allocation of CDBG funds, starting in Federal fiscal year 2020; 2. Accept status as an entitlement grantee and enter into a joint agreement with Spokane County; 3. Defer status as an entitlement grantee and participate through the State CDBG program; or 4. Defer status as an entitlement grantee and participate as part of the urban county. (Note: This is the option that Spokane Valley has selected since 2003). During the re -qualification period, the City of Spokane Valley may, according to regulations, choose to continue to participate or not, as a member of the consortium. Please provide written notification of the option selected to Spokane County. If you choose to remain in the consortium, please send a letter (sample enclosed) by June 12, 2020 stating your choice. www.spokanecounty.org/CSHCD 312 West 8th Avenue, Spokane, Washington 99204 509.477.5722 T 1800.273.5864 j 800.833.6384 Relay 1 509.477.6827 F Mr. Calhoun January 3, 2020 Page 2 If You decide not to participate in the consortium, you need to notify Spokane County and }IUD in writing by June 19, 2020. The contact person at HUD is: John W. Peters U.S. Department of Housing and Urban Development Seattle Federal Office Building 909 First Avenue, Suite 300 Seattle, WA 98104-1000 The choice not to participate in the consortium means: 1. The City of Spokane Valley will not be eligible to receive CDBG and HOME Program funds from Spokane County; 2. The population of Spokane Valley will not be included in the urban county;and 3. The City of Spokane Valley will be eligible to apply to the State of Washington Department of Community Development for Community Development Block Grant and HOME Program funds; 4. The City of Spokane Valley could accept status as an entitlement grantee; 5. The City of Spokane Valley could enter into a joint agreement with Spokane County. If the City of Spokane Valley would like to continue as a consortium member, please review the attached. Interlocal Cooperation Agreement. The agreement requires the City to commit to the consortium for a three-year period, unless subsequent notice is given to HUD. Present the agreement to your City Council for review, discussion, and acceptance. In addition to sending the initial letter, please return the signed Interlocal Cooperation Agreement not later than June 22, 2020. Once the agreement is signed by the Commissioners, a copy of the fully executed document will be mailed to you. In addition to HUD urban qualification notification procedures, there is the inclusion of additional language in the Interlocal Cooperation Agreement, in order to administer the Spokane County Affordable Housing Trust Fund (Substitute House Bill 2060) and the Spokane County Homeless Housing Assistance Act (HHIAA) Fund (ESSHB 2163, 1359 and 2331). As in past years, this authorizes Spokane County's Housing and Community Development Advisory. Committee (HCDAC) to serve as the regional body far reviewing proposals, initiatives, and making funding recommendations for these programs. If you have any questions about Spokane County's CDBG, HOME, Affordable Housing Trust Fund, or IIAA programs, please contact Tim Crowley, Division Manager, at 477-4488 or at tcrowley@spokanecounty.org. Thank you. Sincerely, Kathleen Torella Director RC/tph Enclosures: 3 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING IN THE CITY OF SPOKANE VALLEY PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY COMMUNITY CENTER SPOKANE VALLEY MEALS ON WHEELS BIG BROTHERS BIG SISTERS (TRENTWOOD) EAST SPOKANE WATER DISTRICT ORCHARD AVE IRRIGATION DISTRICT #6 SC PUBLIC WORKS RID PROJECTS CAPA SPECIAL ASSESSMENTS ASSISTANCE CAPA SEWER CONNECTION ASSISTANCE 2003 2003 2003 2003 2003 2003 2003 2003 2003 57,334 21,574 16,000 7,000 100,300 98,860 38,948 150,000 150,000 TOTAL PROJECT DESCRIPTION 640,016 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY COMMUNITY CENTER SPOKANE VALLEY MEALS ON WHEELS WEATHERWOOD/OWNES STREET IMPROVEMENTS CARNAHAN STREET IMPROVEMENTS HOUSING AND ECONOMIC DEVELOPMENT PLANNING SC PUBLIC WORKS RID PROJECTS IRVING WATER DISTRICT #6 CARNHOPE IRRIGATION DISTRICT #7 CAPA SPECIAL ASSESSMENTS ASSISTANCE CAPA SEWER CONNECTION ASSISTANCE 2004 $ 2004 $ 2004 2004 $ 2004 $ 2004 $ 2004 $ 2004 $ 2004 $ 2004 $ 2004 $ 63,693 18,000 20,000 267,803 108,162 20,500 6,385 158,900 116,150 175,000 175,000 TOTAL PROJECT DESCRIPTION $ 1,129,593 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY COMMUNITY CENTER SPOKANE VALLEY MEALS ON WHEELS MONTGOMERY AVE. 1-90 TO UNIVERSITY ECONOMIC DEVELOPMENT PLANNING CAPA SEWER CONNECTION ASSISTANCE TOTAL PROJECT DESCRIPTION 2005 2005 2005 2005 2005 2005 $ 55,049 $ 18,000 $ 20,000 $ 439,850 $ 17,469 $ 437,000 $ 987,368 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY COMMUNITY CENTER SPOKANE VALLEY MEALS ON WHEELS VERA TERRACE SEWER BASIN STREET PAVEBACK EAST SPOKANE WATER DISTRICT SC PUBLIC WORKS RID PROJECTS CARNHOPE IRRIGATION DISTRICT #7 CAPA SPECIAL ASSESSMENTS ASSISTANCE 2006 2006 2006 2006 2006 2006 2006 2006 59,784 13,000 15,000 207,815 118,980 36,898 24,700 116,050 CAPA SEWER CONNECTION ASSISTANCE 2006 $ 212,000 TOTAL $ 804,227 PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2007 $ 55,118 SPOKANE VALLEY COMMUNITY CENTER 2007 $ 25,000 SPOKANE VALLEY MEALS ON WHEELS 2007 $ 4,604 EAST SPOKANE WATER DISTRICT 2007 $ 146,400 TRENTWOOD SEWER BASIN STREET PAVEBACK 2007 $ 77,706 CAPA SPECIAL ASSESSMENT ASSISTANCE 2007 $ 105,400 CAPA SEWER CONNECTION ASSISTANCE 2007 $ 100,624 TOTAL $ 514,852 PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2008 $ 27,044 SPOKANE VALLEY PARTNERS 2008 $ 15,000 SPOKANE VALLEY MEALS ON WHEELS 2008 $ 20,000 SPOKANE VALLEY MEALS ON WHEELS SENIOR NUTRITION SITE 2008 $ 7,700 ROCKWELL SEWER BASIN STREET PAVEBACK 2008 $ 195,410 CARNHOPE IRRIGATION DISTRICT 117 2008 $ 96,500 CAPA SPECIAL ASSESSMENTS ASSISTANCE 2008 $ 150,000 CAPA SEWER CONNECTION ASSISTANCE 2008 $ 75,000 TOTAL $ 586,654 PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2009 $ 51,906 SPOKANE VALLEY PARTNERS 2009 $ 15,000 SPOKANE VALLEY MEALS ON WHEELS 2009 $ 15,000 SPOKANE VALLEY ADA SIDEWALKS - SPREAGUE AVE 2009 $ 88,570 CLEMENT SEWER BASIN STREET PAVEBACK 2009 $ 220,554 CAPA SPECIAL ASSESSMENTS ASSISTANCE 2009 $ 125,000 CAPA SEWER CONNECTION ASSISTANCE 2009 $ 175,000 TOTAL PROJECT DESCRIPTION $ 691,030 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2010 $ 50,880 SPOKANE VALLEY PARTNERS 2010 $ 20,000 SPOKANE VALLEY MEALS ON WHEELS 2010 $ 30,000 EAST SPOKANE WATER DISTRICT 2010 $ 132,800 CORBIN SEWER BASIN STREET PAVEBACK 2010 $ 330,733 CAPA SPECIAL ASSESSMENTS ASSISTANCE 2010 $ 60,000 CAPA SEWER CONNECTION ASSISTANCE 2010 $ 60,000 TOTAL $ 684,413 PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2011 SPOKANE VALLEY PARTNERS 2011 28,394 19,642 SPOKANE VALLEY MEALS ON WHEELS BROADWAY AVE STREET RESURFACING GREEN HAVEN SEWER BASIN STREET PAVEBACK CAPA SPECIAL ASSESSMENTS ASSISTANCE CAPA SEWER CONNECTION ASSISTANCE 2011 2011 2011. 2011 2011 33,684 88,738 192,401 134,000 159,000 TOTAL PROJECT DESCRIPTION 655,859 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY PARTNERS SPOKANE VALLEY MEALS ON WHEELS CARNHOPE IRRIGATION DISTRICT ADA CURBCUTS SPRAGUE AVE 2012 2012 2012 2012 2012 38,453 23,075 40,000 69,000 115,410 TOTAL PROJECT DESCRIPTION 285,938 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY PARTNERS SPOKANE VALLEY MEALS ON WHEELS STREET IMPROVEMENTS - ADAMS 2013 2013 2013 2013 32,771 15,722 38,782 183,609 TOTAL PROJECT DESCRIPTION 270,884 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY PARTNERS GREATER SPOKANE COUNTY MEALS ON WHEELS CARNHOPE IRRIGATION DISTRICT EAST SPOKANE WATER DISTRICT SIDEWALK IMPROVEMENTS - GREENACRES 2014 2014 2014 2014 2014 2014 36,662 15,000 37,000 10,252 75,000 261,794 TOTAL PROJECT DESCRIPTION 435,708 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY PARTNERS GREATER SPOKANE COUNTY MEALS ON WHEELS SIDEWALK IMPROVEMENTS - MISSION AVENUE TOTAL PROJECT DESCRIPTION 2015 2015 2015 2015 33,900 15,728 28,000 358,790 436,418 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR SPOKANE VALLEY PARTNERS GREATER SPOKANE COUNTY MEALS ON WHEELS CARNHOPE IRRIGATION DISTRICT SPOKANE CONSERVATION DISTRICT SEWER CONNECTION 2016 2016 2016 2016 2016 55,469 15,728 28,000 73,440 225,000 TOTAL PROJECT DESCRIPTION 397,637 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2017 $ 25,966 SPOKANE VALLEY PARTNERS 2017 $ 16,000 GREATER SPOKANE COUNTY MEALS ON WHEELS 2017 $ 46,408 SIDEWALK IMPROVEMENTS - 8TH AVENUE 2017 $ 453,895 TOTAL $ 542,269 PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR 2018 $ 38,954 SPOKANE VALLEY PARTNERS 2018 $ 16,000 GREATER SPOKANE COUNTY MEALS ON WHEELS 2018 $ 46,408 SIDEWALK IMPROVEMENTS - WILBUR 2018 $ 342,846 SIDEWALK IMPROVEMENTS - KNOX 2018 $ 287,426 TOTAL PROJECT DESCRIPTION $ 731,634 PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR (ESTIMATED AMOUNT) 2019. SPOKANE VALLEY PARTNERS 2019 $ 20,000 GREATER SPOKANE COUNTY MEALS ON WHEELS 2019 $ 45,000 SIDEWALK IMPROVEMENTS - ELLA 2019 $ 358,133 SIDEWALK IMPROVEMENTS - CONKLIN 2019 $ 75,611 TOTAL TOTAL ALL YEARS ANNUAL AVERAGE - 14 YEARS 498,744 10,293,243 735,232 PRELIMINARY 2020 CDBG RECOMMENDATIONS, SUBJECT TO HUD FUNDING AND BOCC APPROVAL. THEREFORE THESE FIGURES ARE NOT INCLUDED IN THE TOTAL FUNDING AMOUNTS PROJECT DESCRIPTION PROGRAM YEAR FUNDED AMOUNT SNAP EMERGENCY HOUSING REPAIR (ESTIMATED AMOUNT) SPOKANE VALLEY PARTNERS GREATER SPOKANE COUNTY MEALS ON WHEELS SEWER PROGRAM HOME/AFFORDABLE HOUSING TRUST FUND (2060) IN THE CITY OF SPOKANE VALLEY* PROJECT DESCRIPTION 2020 2020 2020 2020 20,000 45,000 FUNDING PROGRAM YEAR FUNDED AMOUNT WOODRUFF HEIGHTS APARTMENTS 1998 $ 648,000 VILLAGE APARTMENTS 1999 $ 252,145 HIDDEN PINES APARTMENTS 2000 $ 349,203 EAST VALLEY SENIOR APARTMENTS 2001 $ 357,425 IERR S.O.LA. HOMES (SEVERELY DISABLED) 2003 $ 446,700 IERR BROADWAY VALLEY HOME (SEVERELY DISABLED 2005 $ 180,000 HOLMAN GARDENS SENIOR HOUSING REHABILITATION 2005 $ 225,000 SPRAGUE CROSSING SENIOR APARTMENTS 2005 $ 164,486 CATHERINE JOHNSON COURT APARTMENTS 2006 $ 700,000 APPLEWAY COURT SENIOR APARTMENTS 2008 $ 500,000 ROCKWELL APARTMENTS 2009 $ 1,649,692 APPLEWAY COURT II SENIOR APARTMENTS 2012 $ 683,000 ROCKWELL APARTMENTS REHABILITATION 2012 $ 167,921 TOTALS $ 6,323,572 * Does not include Tenant Based Rental Assistance or Homebuyer Downpayrnent Assistance COOPERATION AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT AND RELATED FUNDS (HOME, AHTF, HHAA) THIS AGREEMENT, made and entered into by and between Spokane County (hereinafter called the County) and the City of Spokane Valley (hereinafter called the City) this day of , 2020. WITNESSETH WHEREAS, pursuant to Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, Section 109 of Title I of the Housing and Community Development Act of 1974 and other applicable laws, Spokane County is entitled to receive Community Development Block Grant (CDBG) funds for federal fiscal years 2021, 2022, and 2023; and WHEREAS, the amount of' CDBG funds to which the County may be entitled is in part dependent upon the population of other CDBG eligible applicant cities and towns which by this Agreement elect to participate in the CDBG and HOME Entitlement Program with the County; and WHEREAS, the purpose of this Cooperation Agreement, which is entered into pursuant to, and in accordance with the State Interlocal Cooperation Act, RCW 39.34 is to plan for, and administer the CDBG Program and the HOME Investment Partnership Program (HOME). NOW, THEREFORE, in consideration of the mutual promises made herein and the mutual benefits received hereunder, the parties agree as follows: 1. The City may not apply for grants under the Small Cities or State CDBG Programs from appropriations for fiscal years 2021, 2022, and 2023, the years during which the City is participating in the Spokane County CDBG and HOME Program.. 2. The City may not participate in a HOME consortium except through Spokane County, regardless of whether Spokane County receives a HOME formula allocation. 3. The Spokane County urban county qualification period is federal fiscal years 2021, 2022, and 2023. 4. This Agreement remains in effect until the CDBG and HOME funds and income received for federal fiscal years 2021, 2022, and 2023 are expended and the funded activities are completed. The County and the City may not terminate or withdraw from this Agreement while the Agreement remains in effect. 5. The County and the City agree to cooperate to undertake, or assist in undertaking, community renewal and lower -income housing assistance activities. 6. The County and the City will take all actions necessary to assure compliance with the urban county's certification under section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, regarding Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and affirmatively furthering fair housing. This includes the obligation to comply with section 109 of Title I of the Housing and Community Development Act of 1974, which incorporates Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1975, as well as obligation to comply with other applicable laws. 7. The County will not use CDBG or HOME funding for activities in, or in support of a City that does not affirmatively further fair housing within the City's jurisdiction or that impedes the County's actions to comply with the County's fair housing certification. 8. The City has adopted and is enforcing: a) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and, b) a policy of enforcing applicable State and local laws against physically barring entrance to, or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within jurisdictions. 9. The County and the City will not obstruct the implementation of the approved Consolidated Housing and Community Development Plan and subsequent Annual Action Plan(s) during the period covered by this Agreement. 10. The County has final responsibility for selecting CDBG and HOME activities and annually filing the Consolidated Housing and Community Development Annual Action Plan and the Consolidated Annual Performance and Evaluation Report with the U.S. Department of Housing and Urban Development. 1I. The County and City are subject to the same requirements applicable to CDBG subrecipients, including the requirement of a written agreement set forth in 24 CFR 570.503. 12. The County and City may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non -Federal considerations, but must use such funds for activities eligible under title 1 of the Act. 13. The City agrees to participate in the Regional County Homeless Program and Regional Affordable Housing Trust Fund Program, both which authorize Spokane County's Housing and Community Development Advisory Committee (HCDAC) to serve as the regional body for reviewing proposals, initiatives, and making funding recommendations for Affordable Housing Trust Fund (2060) and Homeless Housing Assistance Act (HHAA - 2163, 1359, and 233 I) activities. 14. The Spokane County's Housing and Community Development Advisory Committee (HCDAC) will review CDBG, HOME, Affordable Housing Trust Fund (2060), and Homeless Housing Assistance Act (HHAA - 2163, 1359, and 2331) program policies, plans, and applicant funding proposals and recommend to the Board of County Commissioners funding of applicant proposals. 15. The Spokane County's Housing and Community Development Advisory Committee (HCDAC) will include a representative of the City appointed by the Spokane County Board of Commissioners in consultation with the Mayor and/or Council of the City. This Agreement is entered into on this day of , 2020 by: City of Spokane Valley Spokane County Mark Calhoun • City Manager Al French Chair, Spokane County Board of Commissioners Sample Letter: Please Print on Official Municipality Letterhead REQUEST TO PARTICIPATE AS MEMBER OF SPOKANE COUNTY CONSORTIUM FOR COMMUNITY DEVELOPMENT BLOCK. GRANT ENTITLEMENT AND RELATED FUNDING (HOME, AIITF - 2060, HOMELESS HOUSING ASSISTANCE ACT - HHAA) (Date) Spokane County Community Services, Housing, and Community Development Department 312 West 8th Avenue Spokane, WA 99204 Dear Ms. Torella: The municipality of hereby officially chooses to participate as a member of the Spokane County Urban Consortium for the federal fiscal years of 2021, 2022, and 2021 Sincerely, Signature Printed Name and Title Van Ness Feldman up MEMORANDUM 719 Second Avenue, Sulte 1150 Seattle, WA 98104-1728 206-623-9372 vnf.com TO: John Hohman, Community Development Director, City of Spokane Valley FROM: Doug McIntyre, Land Use Planner DATE: January 12, 2014 RE: Planning Analysis of becoming a HUD CDBG entitlement community I. Introduction and Executive Summary The City of Spokane Valley ("Spokane Valley") has asked for an analysis of becoming a Community Development Block Grant ("CDBG") entitlement community. The CDBG program is administered by the U.S. Department of Housing and Urban Development ("HUD") and provides grants to local governments and states that fund a wide range of community development needs. Since its incorporation, Spokane Valley has participated as a pass -through recipient of CDBG funds via the Spokane County Consortium, which seeks funds for several local governments in the area and locally administers the CDBG funds granted by HUD. Annually, the City receives a 20% set -aside of the Consortium's grant amount. Spokane Valley is eligible to become its own CDBG entitlement community based on established HUD criteria, but has not yet elected to activate that designation. The City now wants to explore whether electing to become a HUD CDBG entitlement community is preferable to continuing as a pass - through grantee of the Spokane County Consortium. This memo explains what it takes to become a CDBG entitlement community, obligations in carrying out the program, the types of projects that can be funded, and the overall benefits and drawbacks. As previously explained, this memorandum is intended to provide practical advice based on planning expertise with HUD funding. Before taking any action or making a decision on whether or not to become a CDBG entitlement community, we strongly recommend that the City confer with its bond counsel to seek legal advice on this question. Van Ness Feldman does not have legal expertise in bond financing and a legal opinion from your bond counsel is a crucial part of developing any strategy. Memorandum - 2 - December 15, 2014 As explained below, it may be worthwhile for the City to become a CDBG entitlement community. Specifically, the City would be able to administer its own grant and therefore could target specific needs of the community, could potentially realize a larger grant amount, and be able to more easily access Section 108 program funds to fund economic development projects. However, the conclusion should not be viewed independently of other factors, such as the potential to negatively affect the Spokane County Consortium CDBG award (with the incumbent political repercussions), the need to hire additional staff, the necessary effort and time dedicated to establishing the City's program, the commitment to administering the program, the possibility of receiving a smaller grant amount, and potentially other unforeseen factors. If the City chooses to become its own CDBG entitlement community we recommend that it work closely with HUD and notify HUD as early as feasible to ensure a smooth process. The earliest that the City would be able to initiate this process with HUD is in early 2017 due to three-year qualification periods. II. Background A. Eligibility Requirements to Become an Entitlement Community To become a CDBG entitlement community (i.e. receive CDBG funds directly from HUD and administer the grant independently), a community must qualify as a Metropolitan City (i.e., have a population of at least 50,000, per the U.S. census) or be designated a Principal City within a metropolitan area (as determined by the Office of Management and Budget [OMB]). Once a city meets the qualification for entitlement status, the regional HUD office sends a letter notifying the city of the designation and provides information on the options for participation in the CDBG program. Spokane Valley received its notification Ietter in June 2005 for eligibility starting in Fiscal Year 2006. As part of the letter, HUD outlined four options available to the City at that time, with the City electing to defer their status as an entitlement community and instead participate as part of the Urban County (i.e. Spokane County Consortium). Although the City deferred its status as an entitlement grantee, the option to become an entitlement grantee remains so long as the criteria for qualification are met. HUD notifies eligible cities of their entitlement eligibility designation in the last year of the three-year qualification period. Because Spokane Valley is currently participating in the CDBG program as part of an Urban County entitlement (i.e. Spokane County Consortium) the City must remain a part of that entitlement through the end of the three-year qualification period. The Spokane County Consortium just completed the last year of the most recent three-year period (2012-2014). Due to the timing, it is infeasible for the City to become an entitlement community for the upcoming three year qualification period (2015-2017) and would need to wait until the next opportunity in the 2018-2020 qualification period. Memorandum 3 December 15, 2014 B. Entitlement Community Obligations The major obligation of an entitlement community is to administer its own CDBG grant funds to serve its low- and moderate -income individuals and families. Administration of CDBG funds includes everything from drafting a Consolidated Plan, annual application, granting funds to sub - recipient agencies, monitoring sub -recipient agencies, reporting to HUD on a regular basis, being subject to HUD monitoring, and tracking funds, among other tasks. 1. Consolidated Plan The most important document in the administration of CDBG funds is the Consolidated Plan. The Consolidated Plan is a plan of three to five years in length, which describes community needs, resources, priorities, and proposed activities to be undertaken under certain HUD programs, including CDBG. HUD must approve this document prior to releasing any funds to the entitlement community. There is a public process that must be followed and input must be gathered from potential sub -recipient agencies to inforrn the Plan and help identify funding priorities. The planning process typically involves public meetings, surveys, consultations with service providers and key stakeholders, and the assessment of current housing and population needs through the analysis of available data. The Consolidated Plan must identify needs and adopt strategies that focus primarily on lower - income individuals and households. The Plan must also address special needs identified by the federal government or locally, such as the needs of: Elderly and frail elderly Persons with mental, physical or developmental disabilities Persons with HIV/AIDS Persons with alcohol or drug addiction Victims of domestic violence Persons discharged from institutions (prison, jail, mental hospital, foster care) Homeless persons and families The Consolidated Plan has three major components: an assessment of Community Needs, a Housing Market Analysis and a Strategic Plan. The Consolidated Plan also typically includes maps, tables and supplemental information regarding community needs and the planning process. Once established, the Consolidated Plan is periodically updated on a three- to five-year basis. 2. Compliance with Federal Regulations Governing Grant Administration An additional administrative requirement of using CDBG funds is that the entitlement community (and its sub -recipient agencies) must adhere to "cross -cutting" federal regulations for all funded and partially- funded projects. These include, but are not limited to, financial management and procurement requirements, environmental review requirements, federal labor Memorandum - 4 - December 15, 2014 standards, and fair housing standards. While these cross -cutting requirements are not particularly onerous to administer, they require an additional level of expertise and effort. HUD regularly provides training on these topics. 3. Establishing and Administering a Competitive Grant Application Process The information outlined in this sub -section relates to procedural steps in administering CDBG funds and ultimately contracting with local agencies to fund projects benefiting low- and moderate -income populations. While entitlement communities vary in the exact manner of carrying out the annual competitive grant application process, the concepts below are essential to administering CDBG funds and fulfilling HUD requirements. Once the entitlement community has received CDBG funds, it will facilitate a competitive annual application process by which local agencies can compete for funding, including any project applications submitted by the City or its various departments. The goal of this process is to impartially distribute the funds according to strategies identified in the Consolidated Plan. Many entitlement communities have established an online application process, which helps streamline the application review. Eligible applicants/sub-recipients for CDBG funds include: City departments Other local public agencies Public and private nonprofit organizations (501(c)(3)) Section 301(d) small business investment companies Local development corporations Private profit organizations may implement certain economic development and microenterprise activities All applicants must demonstrate that there is an active governing body or board of directors with skills and experience to provide leadership and direction to the agency. Applicants must also demonstrate the legal, financial, and programmatic ability to administer the proposed project. Another important part of this process is the involvement of citizen review committees, often called grant recommendation committees. These are made up of appointed citizens and local professionals who either have specialization in grant administration or experience in serving low - and moderate -income populations. Generally, there are two grant recommendation committees for each annual award process, one for public service grant applications and the other for capital and economic development grant applications. Once all applications are received, City staff filters out incomplete applications and then makes recommendations to the grant recommendation committee, which then conducts interviews with the project proponents and makes final funding decisions as a group. The final decisions of the Memorandum 5 December 15, 2014 grant recommendation committee are then adopted (or amended) by the City Council at a public hearing. Once grants are awarded, the City will then contract with the sub -recipient agencies to complete the project or service in a specified timeframe subject to specific conditions. C. Projects Available for Funding under the CDBG Program Eligible projects are defined in the CDBG program regulations at 24 CFR 570.201- 570.207. A list of some of the eligible projects includes: Acquisition of real property by purchase, lease or donation Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements Code enforcement in deteriorated or deteriorating areas Clearance, demolition and removal and rehabilitation of buildings and improvements Removal of material and architectural barriers Public services (including labor, supplies and materials) including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs Planning activities Assistance to Community Based Development Organizations (CBDO) to carry out projects Assistance to carry out economic development projects Housing services such as housing counseling and energy auditing Assistance to facilitate and expand homeownership opportunities for low and very low income people Lead based paint hazard evaluation and reduction The following activities are generally not eligible for CDBG funding: New residential housing construction, except in special circumstances Regular government operations Buildings such as city halls, police stations, or other buildings primarily for the general conduct of government (except for the removal of architectural barriers) Income payments such as payments to individuals or families for food, clothing, or rent, except in certain circumstances Political activities Memorandum 6 December 15, 2014 D. HUD Criteria for Awarding CDBG Grants HUD allocates CDBG grant funds to entitlement communities through one of two formulas, known as Formula A and Formula B. Formula A allocates funds to a community based on its regional shares of: (1) population, weighted at 25%; (2) poverty, weighted at 50%; and (3) overcrowding, weighted at 25%. Formula B allocates funds to a community based on: (1) its share of growth lag, weighted at 20%; and its regional shares of(2) poverty, weighted at 30% and (3) pre-1940 housing weighted at 50%. Entitlement communities receive the higher of the two formula amounts. Once awarded a grant amount, the funds are further broken down into administration, public service funds, and capital funds. Generally speaking, 20% of the grant amount is dedicated to administration of the grant (e.g. City staff), 15% of the grant amount is dedicated to public service projects, and the remainder is used for a combination of capital projects, economic development, or other projects serving low-income areas. In a hypothetical scenario in which the City of Spokane Valley were an entitlement community and received a CDBG grant award from HUD of $500,000, the breakdown of funds available for the various types of projects would be as follows: $100,000 for administrative costs (20% administrative cap) $75,000 for public service projects (15% public service project cap) $325,000 for capital or other projects III. Analysis If the City of Spokane Valley were to become a CDBG entitlement, it would no longer participate under the Spokane County Consortium for CDBG funds and would contract directly with HUD for receipt, administration, reporting, and monitoring of the grant funds. This creates some potential opportunities, but also risks and costs. A. More Direct Control and Influence Over CDBG Process A fundamental benefit of becoming an entitlement community is that the City would have more direct control than in its current role as a pass -through recipient in the County Consortium. The City would be able to directly influence how the funds are awarded and used (outlined by the goals of the Consolidated Plan), instead of going through the County's competitive process and being subject to those project priorities. The City would also be able to hold its own competitive award application process (described in Section II), which would determine which agencies and projects are awarded. Direct administration provides a level of control over where the CDBG funds are dedicated (e.g. address a particular, unique need within the Spokane Valley community). Memorandum - 7 - December 15, 2014 B. Changes in Potential CDBG Grant Award It is important to note that many of the HUD programs, including CDBG, produce volatile grant amounts on a year-to-year basis. The grant amounts are affected by a multitude of factors, including national political climate and the federal budgeting process. Moreover, even if the overall amount that HUD made available through its CDBG program remained static, the amount that it awards to each entitlement community varies based on demographic statistics and other elements that can change. Therefore, it is extremely difficult to estimate a potential CDBG grant amount that Spokane Valley can expect to receive if it were to become an entitlement community. HUD does not formally provide grant estimates until the grant is nearly awarded, so it is not feasible to obtain a formal grant estimate. For rough planning purposes and to provide a general range of potential grant outcomes it is informative to look at recent grant awards of entitlement communities in Washington with relatively similar characteristics to Spokane Valley. The following are used for comparative purposes only: HUD CBDG Entitlement Community 2013 CDBG Grant Allocation 2014 CDBG Grant Allocation City of Auburn $531,551 $499,238 City of Federal Way $606,711 $649,054 City of Kennewick $592,344 $539,970 City of Kent $914,499 $914,731 City of Renton $593,693 $586,722 City of Yakima $912,849 $841,886 Average $691,941 $671,934 As a preliminary matter, it is important to note that the amounts listed in the table above are gross grant amounts, which means that the total grant amount eligible to fund projects is less than the HUD awarded amount due to staff costs for grant administration. Because Spokane Valley does not directly incur these costs as a pass -through recipient, some discount of the figures in the table should be considered before comparing with the set -aside amounts the City receives from its participation in the Consortium. More significantly, these numbers from other cities are for comparison on a very coarse scale and it is very important to recognize that a CDBG award for the City of Spokane Valley may not fall within this range. Importantly, the factors HUD considers in its formulas described above Memorandum - 8 - December 15, 2014 are the most directly controlling in determining award amounts; comparisons between cities without a more detailed analysis of how those cities compare on the basis of those factors may provide a misleading picture. A more in-depth analysis would need to be conducted to determine exactly what the City's CDBG entitlement allocation could be before relying solely on the coarse -scale comparison. Additionally, it is not known whether any of these cities is in a similar fact pattern in which it separates from and competes with a more regional entitlement community group. Thus while it may be tempting to compare the figures awarded to the cities in the table above against the amount that Spokane Valley receives through the 20% set -aside from the Spokane County Consortium (which will amount to approximately $270,000 in 2015), it is possible that the City could actually see lower figures than it would have obtained when participating with the Spokane County Consortium. The opportunity to receive more funds than currently allocated through the set -aside does exist, but it is by no means a certainty. C. Eligibility for Section 108 Program Beyond basic CDBG-eligible economic development activities, there are additional ways in which the City could take advantage of being an entitlement community. The Section 108 program is of particular interest to the City due to its ability to fund large-scale projects. The Section 108 Program is a loan guarantee program which enables recipients to apply for a loan equal to an amount up to five tinges their annual CDBG grant for certain types of economic development activities. The Section 108 provision of the CDBG regulations requires that jurisdictions pledge their CDBG funds in case of a default. Per HUD, "The Section 108 loan guarantee program allows local governments to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of renewing entire neighborhoods." Generally, activities eligible for Section 108 financing include (per 24 CFR 570.703): • Economic development activities eligible under CDBG Acquisition of real property Rehabilitation of publicly owned real property Housing rehabilitation eligible under CDBG Construction, reconstruction, or installation of public facilities (including street, sidewalk, and other site improvements) Related relocation, clearance, and site improvements Payment of interest on the guaranteed loan and issuance costs of public offerings Debt service reserves In limited circumstances, housing construction as part of community economic development, Housing Development Grant, or Nehemiah Housing Opportunity Grant programs Memorandum - 9 December 15, 2014 For purposes of determining project eligibility, the CDBG rules and requirements also apply. All projects and activities must either principally benefit low- and moderate -income persons, aid in the elimination or prevention of slums and blight, or meet urgent needs of the community. Some Section 108 benefits to highlight include: • • • The program provides long-term, affordable financing It helps communities undertake CDBG-related projects while annual CDBG entitlement funds are obligated to other uses It provides leverage: $1 of CDBG creates $5 of Section 108 borrowing capacity Communities can receive funds right away It helps to spread costs over a multi -year period It is not a general obligation for debt purposes The repayment period can be up to twenty years As it currently stands, the City would, in most cases, need to have the County Consortium pledge its CDBG funds to secure a Section 108 loan guarantee to fund a project in the City limits on behalf of Spokane Valley. This is a hindrance for the City, as it may not be achievable; however, if successful, a Section 1 08 grant through the County Consortium could result in a potentially greater Section 108 loan due to the County's larger CDBG formula allocation. D. Effect of Separation from Spokane County Consortium There are potential ramifications on the City's relationship with the County and others participating in the County Consortium. The City would move from a cooperative, participatory role to one of a separate entitlement community competing for HUD funding. From a practical standpoint, Spokane County would no longer be able to use Spokane Valley demographics and other characteristics as part of their funding formula. If that leads to a potential decrease in the County's CDBG allocation beyond the mere loss of Spokane Valley's share, the City's departure from the Consortium could impact the political relationship between the two entities. Furthermore, the establishment of Spokane Valley as a CDBG entitlement community could potentially affect the HOME Investment Partnerships (HOME) funds awarded to the County. While an analysis of the HOME program and implications on the strategy for HOME funds is beyond the scope of this memorandum, the interconnectedness of the two programs should be noted due to the intent to serve similar populations and the fact that the same staff typically administers both programs. It is unclear at this time what the effect of a separation may be. It could be possible to maintain the current relationship with the Spokane County Consortium as the HOME Participating Jurisdiction. For a better understanding of the impacts on HOME funding, further analysis is recommended. For all the reasons, it is reasonable to expect the City's political relationship with the County to change if it becomes an entitlement community that is separate from the County Consortium. Memorandum - 10 - December 15, 2014 E. New Administrative Obligations As its own entitlement community, Spokane Valley would no longer be a pass -through entity of the Consortium and would be entirely responsible for its own grant. This comes with significant administrative obligations. A city with the characteristics and size of Spokane Valley could reasonably expect to employ two to three full-time staff members to administer the grant, which may include a program administrator/director and program specialist(s). While there would be new obligations, the City could fund staff positions to fulfill these obligations using the CDBG grant monies; the CDBG Program allows 20% of the total grant to be used for administrative purposes, including staff costs. Additional considerations, especially for the first year(s) of being an entitlement community, include start-up costs necessary to initiate the program to award grants to sub -recipient agencies and/or carry -out projects. Start-up costs will include a community needs assessment, creation of a Consolidated Plan (including project funding priorities), training, establishment of an application process, development of award contract templates, and more. It is highly likely that collectively these initial tasks will require outside consultant support as well as in-house labor, technical assistance from HUD, and assistance from the Spokane County Consortium. Finally, as an entitlement community, the City would be responsible to HUD staff for demonstrating compliance, which can involve a significant time commitment. HUD staff are obligated to enforce the rules of the program, which can potentially result in findings and other penalties (e.g. repayment of fiends) if the fiends are not being used appropriately. HUD conducts regular monitoring visits which include in-depth analysis of the grant funds (similar to an audit) to ensure that the program is being conducted properly and in accordance with the CFR and the CDBG Program Rules. These monitoring visits can last several days and require a significant time commitment from City staff (interviews, document retrieval, etc.). Because of the skills required and the extent of the obligations, jurisdictions do not typically add the task of administering the CDBG program to an existing employee's job responsibilities. Therefore, the City will likely need to hire an employee or employees, ideally with significant previous experience in administering CDBG funds because of the level of expertise needed in starting a new program. This endeavor will result in a well -run program, but could be difficult to accomplish as the skills required for running a program are not necessarily widely available. IV. Conclusion. As noted above, there are several benefits to becoming a CDBG entitlement community. The City would have more control throughout the process including its ability to apply directly to leverage CDBG funds for financing of other economic development programs under section 108. Also, though not a certainty, if the City were a CDBG entitlement community there is a Memorandum - 11 - December 15, 2014 possibility to receive more funds than the current arrangement with the Spokane County Consortium. However, there are also several potential drawbacks to being a CDBG entitlement community. Most prominent of the drawbacks is the potential to impact the CDBG grant allocation to the Spokane County Consortium. As mentioned above, it is difficult to determine how the County's grant amount may be affected, but it is possible that it will experience a decrease due to the loss of the demographic and community characteristics of Spokane Valley from their formula. calculation. There may be political ramifications of this scenario, but the region as a whole should generally not see a decline in overall benefit from the HUD investment of CDBG fiends in the area. Furthermore, the necessary personnel and training required and the incumbent start-up costs that must take place prior to receiving CDBG funds should not be understated. HUD is available to provide technical assistance in this case, but the amount of overall staff expertise needed is high. Based on what is currently understood about the City's status as an eligible CDBG entitlement community and its current relationship with the Spokane County Consortium as a pass -through entity, it appears that becoming a CDBG entitlement community could be worthwhile, if only for the ability to have more control and to more effectively leverage funds pursuant to the Section 108 program. We recommend that if the City intends to pursue this option, City staff engage HUD as early as possible to ensure that activating the designation as an entitlement community for the next three- year qualification period (2018-2020) is a smooth process that is accomplished in the most effective manner. Community Development Block Grant (CDBG) Program S61' .. Val Program Evaluation and Urban County Requalification June, 2020 Mike Basinger, Economic Development Manager Spokane Valley City Council - Administrative Report - CDBG Requalification Tonight's Agenda CDBG Introduction Entitlements Funding Limits Revised cooperation agreement Additional considerations Spokane Valley City Council - Administrative Report - CDBG Requalification 2 CDBG Intro: Objective Development of viable urban communities, principally for low/mod income persons Low and Moderate Income Census Blocks 2019 LMI Areas Qualifying 0 2000 4,000 6,000 0.000 10.000 Feet A Spokane Valley City Council - Administrative Report - CDBG Requalification 3 CDBG Intro: Partners & Roles U.S. Dept. of Housing and Urban Development (HUD) Entitlements and States Units of General Local Government (UGLG) Sub -recipients Community Based Development Organizations (CBDO) c Contractors c Beneficiaries HUD Entitlement Sub -recipient, Contractor, CBDO Beneficiary Spokane Valley City Council - Administrative Report - CDBG Requalification 4 Entitlement: Determining Eligibility "Entitlement" Principal cities of Metropolitan Statistical Areas (MSAs) — utner metropolitan cities with populations of at least 50,000 Qualified urban counties at least 200,000 (excluding entitled cities) "Non -entitlement" Everyone not meeting entitlement States distribute to non -entitlement Spokane Valley City Council - Administrative Report - CDBG Requalification 5 CDBG Intro: Project Types Acquisition of property by purchase ■ L,orlstruution of public mprovements Code enforcement in deteriorated areas Clearance and demolition of buildings Removal of architectural barriers Public services assistance (labor, supplies and materials) ■ Planning activities ■ Assistance CBDO (Community Base Development Organization) to carry out projects Economic development projects Housing counseling and energy auditing Expand low and very low income homeownership Lead based paint hazard reduction Spokane Valley City Council - Administrative Report - CDBG Requalification 2020 & 2021 Project: Barker Road Sewer Project Barker Road Manufacturing Home Community Map Legend Municipal Boundaries Sewer - Force Main Sewer - Gravity Smrored Not Sewend IJ 1_ 1 0 100 200 300 400 500 Feet Collaborative project to eliminate septic tanks County installs sewer City pays to pave back roadways CDBG set -aside for sewer hookup assistance County manages sewer assistance program Spokane Valley City Council - Administrative Report - CDBG Requalification Funding -Limits Capital Projects Administation and Planning Human Services 20% of new funding for administration & planning 15% limit for human service allocation 65% for capital projects Spokane Valley City Council - Administrative Report - CDBG Requalification 8 Revised Cooperation Agreement CUOPF,NATION AGNF.f.Mx'.r rt H GRPN" CGMMll ,: terS(HOM& AraTF,HNAA AND RC T ,._.� r nv a, r •" •• d wrvea Cr IA, and 1.11) an awed fur �f � _....„Jed and the tend d �e whflu the pgreomen rtuf�nr, r..ir i. f of a C:tY Cnf aces :mvedes fhe Gonmy's ve force by low 'acts violent lull mild (local laws against ,s the subject of such nPf�•»°1� Cnnza�iilsfcd iise eh, n gll: filing Housing end Urban pBt3 sebrecOenth, n of such fonds to or Indian tribe, ether funds, credits r title I of the Act gional Affords,. in6 en Community m f r6 preposelr, t Fund (20EU) end mitt.. will review log Assistance Act inC Prn,sA. and re wlR roulade Commissioners in Increase visibility on materials New Consortium web page Increase Spokane Valley representatives to 4 Increase CDBG set -aside Not limited to infrastructure Recommendations of CDBG projects and activities in City Support opportunities for affordable housing activities in City Spokane Valley City Council - Administrative Report - CDBG Requalification Entitlement -Additional Considerations 1) Comparing CDBG allocation process to LTAC Tourism Funding Program Element Hotel -mote Tax LTAC) r li,:Teta Formal Plan Required No Yes — Multi -year plan approved by HUD Compliance with No Federal Regs Competitive Application Process Annual Reporting Financial Reporting Yes- Applications reviewed and recommended to Council by LTAC Yes- Annual report of lodging tax expenditures to state Yes- Same as annual reporting Yes- Must adhere to all federal regulations (e.g. NEPA, fair labor) for funded projects Yes- Applications reviewed and recommended to Council by citizens appointed by Council Yes- Responsible for collecting performance data, compiling data and submitting to HUD for all projects Yes- Responsible for all accounting and financial management consistent with state and federal rules. Spokane Valley City Council - Administrative Report - CDBG Requalification Entitlement -Additional Considerations 1) Comparing CDBG allocation process to LTAC Tourism Funding rogram Element Audits Level of City Staffing Funds to Administer the program Monitoring and Compliance Hotel -motel Tax (LTAC Auditing of the lodging tax program falls within the City's regular annual audits by the State Auditor's Office Limited - once/ year for award process and reporting. Ongoing reimbursements No Yes- The City is responsible for the accuracy of expense data and is required to submit this data to the state, but the state does not independently verify the information. Yes- Responsible for any state and federal audit findings. City responsible for all subrecipients compliance. HUD conducts annual performance reviews Estimated 2-3 FTEs Additional finance time for reporting Yes- Up to 20% of allocation can be used The City would be responsible to HUD staff for demonstrating compliance with the CDBG. Penalties for non-compliance. HUD conducts regular monitoring visits to ensure that the program is being conducted properly and in accordance with the CDBG Program Rules Spokane Valley City Council - Administrative Report - CDBG Requaiilication Entitlement -Additional Considerations 2) Estimated staff to administer the program Comparing other jurisdictions in Washington of similar size and characteristics it's estimated the City would need 2-3 FTEs. Currently Spokane County has 4.5 FTEs; the City of Spokane has 18 FTEs 2019 CDBG Allocation Spokane County $1.5 million; City of Spokane $3.2 million Spokane Valley City Council - Administrative Report - CDBG Requalification Entitlement -Additional Considerations $900,000 $800.000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 S- 3) Historic and Potential CDBG Allocation 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 City Infrastucture Award >• Partner Awards —2006-2019 Average ---91 of Consortium Total — 60% 40% 30% 20% 10% 01 Historic Average: $538,000 (2006-2019) red line Blue is direct city award; green is partners; yellow is % of consortium total Potential: $520,000 Based on HUD estimate Spokane Valley City Council - Administrative Report - CDBG Requalification Entitlement -Additional Considerations Year Project Awarded 2006 Catherine Johnson Ct A $700,000 2008 Appleway Court Apts $500,000 2009 Rockwell Apts $1,649,692 2012 Appleway Court II Apts $683,000 2012 Rockwell Apts Rehab $167,921 2019 Aspen Grove $652,444 2019 Mirabeau Townhomes $600,000 2019 Mirabeau Place $850,000 Total $5,803,057 4) HOME and HHAA Funds Separate programs from CDBG City does not qualify for HOME Established by formula Could qualify for HHAA Adopt 5-year homeless plan 2019 estimate $550,000 Table shows projects within Spokane Valley using HOME and HHAA funds Spokane Valley City Council - Administrative Report - CDBG Requalification Spokane Valley Entitlement: Options r i i 1. Accept status as an entitlement grantee 2. Accept status as an entitlement grantee and enter into a joint agreement with the urban county (Spokane County) 3. Defer status of an entitlement grantee and participate through the State CDBG program 4. Defer status as an entitlement grantee and participate as a part of the urban county (since 2003) Spokane Valley City Council - Administrative Report - CDBG Requalification 15 Questions To: From: Re: DRAFT ADVANCE AGENDA as of May 28, 2020; 9:30 a.m. Please note this is a work in progress; items are tentative Council & Staff City Clerk, by direction of City Manager Draft Schedule for Upcoming Council Meetings June 9, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Motion Consideration: Community Development Block Grant Interlocal — Mike Basinger 3. Admin Report: Potential Grant Opportunity-Pedestrian/Bike Safe Rts to School — Adam Jackson (15 min) 4. Admin Report: Graffiti — Cary Driskell, Legal Intern Aziza Foster 5. Admin Report: Vaping — Erik Lamb 6. Admin Report: Motorized Foot Scooters — Erik Lamb 7. Admin Report: Advance Agenda — Mayor Wick [due Tue June 21 (5 minutes) (10 minutes) (10 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting 65 mins] June 16, 2020, Study Session, 6:00 p.m. [due Tue June 9] 1. Aging & Long Term Care of Eastern Washington — Lynn Kimball, Executive Director (20 minutes) 2. Behavior Health Update — Chief Werner (15 minutes) 3. COVID-19 Impact on Parks & Recreation Summer Programs — Mike Stone, Tina Gregerson (30 minutes) 4. Advance Agenda — Mayor Wick (5 minutes) [*estimated meeting 70 mins] June 23, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Info Only: Department Monthly Reports June 30, 2020, Study Session, 6:00 p.m. Oath of Office: Administered to New Police Chief ACTION ITEMS: 1. Motion Consideration: Potential Grant Opp.Pedestrian/Bike Safe Rts to School — Adam Jackson (10 min) NON -ACTION ITEMS: 2. Advance Agenda — Mayor Wick [due Tue June 161 (5 minutes) July 7, 2020, Study Session, 6:00 p.m. 1. Advance Agenda — Mayor Wick July 14, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Council Goals & Priorities for use of Lodging Tax — Chelsie Taylor 3. Admin Report: Advance Agenda — Mayor Wick July 21, 2020, Study Session, 6:00 p.m. 1. Advance Agenda July 28, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Motion Consideration: Council Goals & Priorities for Use of Lodging Tax — Chelsie Taylor 3. Admin Report: Advance Agenda — Mayor Wick 4. Info Only: Department Monthly Reports [due Tue June 231 August 4, 2020, Special Meeting: Budget Workshop 8:30 a.m. — 2:30 p.m. (5 minutes) [due Tue June 30] (5 minutes) [due Tue July 7] (5 minutes) (15 minutes) (5 minutes) Idue Tue July 141 (5 minutes) [due Tue July 21] (5 minutes) (10 minutes) (5 minutes) Idue Tue July 28] Draft Advance Agenda 5/28/2020 11:14:44 AM Page 1 of 2 August 4, 2020, Study Session, 6:00 p.m. - Cancelled August 11, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Wick August 18, 2020, Study Session, 6:00 p.m. 1. Council 2021 Budget Goals — Chelsie Taylor 2. Advance Agenda August 25, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Wick 3. Info Only: Department Monthly Reports Sept 1, 2020, Study Session, 6:00 p.m. 1. Advance Agenda Sept 8, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Estimated Revenues & Expenditures, 2021 Budget — Chelsie Taylor 3. Admin Report: Advance Agenda — Mayor Wick Sept 15, 2020, Study Session, 6:00 p.m. 1. Outside Agency Presentation (max 5 minutes each) — Chelsie Taylor 2. Advance Agenda — Mayor Wick Sept 22, 2020, Formal Meeting Format, 6:00 p.m. 1. Public Hearing #1 — 2020 Budget Revenues and Property Taxes — Chelsie Taylor 2. Consent Agenda (claims, payroll, minutes) 3. Motion Consideration: Set 2021 Budget Hearing #2 for Oct 27 — Chelsie Taylor 4. Admin Report: Washington State Dept of Trans Land Acquisition, Flora Road — C. Driskell 5. Admin Report: Advance Agenda — Mayor Wick 6. Info Only: Department Monthly Reports Sept 29, 2020, Study Session, 6:00 p.m. 1. Advance Agenda *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Appleway Trail Amenities Art Sculptures Placements Artwork & Metal Boxes Comp Plan Amendments Donation Recognition Fee Resolution Cost of Service Analysis Flashing Beacons/School Signage Health District Re SV Stats Mirabeau Park Forestry Mgmt. Naming City Facilities Protocol Park Lighting PFD Presentation SPEC Report/Update [due Tue Aug 41 (5 minutes) (5 minutes) [due Tue Aug 111 (20 minutes) [due Tue Aug 181 (5 minutes) (5 minutes) [due Tue Aug 251 (5 minutes) [due Tue Sept 11 (5 minutes) (15 minutes) (5 minutes) [due Tue Sept 81 (- 60 mins) (5 minutes) [due Tue Sept 151 (15 minutes) (5 minutes) (5 minutes) (10 minutes) (5 minutes) [due Tue Sept 221 (5 minutes) St. Illumination (owners, cost, location) St. O&M Pavement Preservation Tourism Venues (12/8/2020) Trunk or Treat Utility Facilities in ROW Water Districts & Green Space Way Finding Signs Draft Advance Agenda 5/28/2020 11:14:44 AM Page 2 of 2 Spokane Valley Memorandum FINANCE DEPARTMENT Chelsie Taylor, Finance Director 10210 E Sprague Avenue • Spokane Valley WA 99206 Phone: (509) 720-5000 • Fax: (509) 720-5075 • www.spokanevalley.org To: Mark Calhoun, City Manager From: Chelsie Taylor, Finance Director Date: May 27, 2020 Re: Finance Department Activity Report — April 2020 Following is information pertaining to Finance Department activities through the end of April 2020 and included herein is an updated 2020 Budget to Actual Comparison of Revenues and Expenditures through the end of April. 2019 Year-end Process The 2019 books were closed in May. We are in the process of preparing our annual financial report. This process has been slowed due to having half of the Finance staff working from home at any given time during the COVID-19 pandemic. Also, Finance staff have prioritized daily activities, such as continuing weekly check runs and daily bank deposits. We hope to have the State Auditor's Office begin the audit of 2019 by early July. 2021 Budget Development The 2021 Budget development process began in the Finance Department in early March, and on April 7th we sent detailed budget requests to all departments to complete by mid -May. By the time the budget is scheduled to be adopted on November 24th, the Council will have had an opportunity to discuss the budget on seven occasions including three public hearings. • August 4 • September 8 • September 22 • October 13 • October 27 • November 10 • November 24 • November 24 Council budget workshop Admin report on 2021 revenues and expenditures Public hearing #1 on the 2021 revenues and expenditures City Manager's presentation of preliminary 2021 Budget Public hearing #2 on 2021 Budget First reading on proposed ordinance adopting the 2021 Budget Public hearing #3 on the 2021 Budget Second reading on proposed ordinance adopting the 2021 Budget Budget to Actual Comparison Report A report reflecting 2020 Budget to Actual Revenues and Expenditures for those funds for which a 2020 Budget was adopted is located on pages 5 through 17. Because we attempt to provide this information in a timely manner, this report is prepared from records that are not formally closed by the Finance Department at month end or reconciled to bank records. Although it is realistic to expect the figures will change over subsequent weeks, I believe the report is materially accurate. P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 04 30.docx Page 1 We've included the following information in the report: • Revenues by source for all funds, and expenditures by department in the General Fund and by type in all other funds. • A breakdown between recurring and nonrecurring revenues and expenditures in the General Fund, Street O&M Fund and Stormwater Fund. • The change in fund balance including beginning and ending figures. The beginning fund balance figures are those that are expected to be reflected in our 2019 Annual Financial Report. • Columns of information include: o The 2020 Budget as adopted o April 2020 activity o Cumulative 2020 activity through April 2020 o Budget remaining in terms of dollars o The percent of budgeted revenue collected or budgeted expenditures disbursed A few points related to the General Fund #001 (page 5): Recurring revenues collections are currently at 19.99% of the amount budgeted with 33.33% of the year elapsed. • Property taxes are paid to Spokane County in two installments each year on April 30 and October 31 and are then remitted to the City primarily in May and November with lesser amounts typically remitted in June and December. Property taxes received thus far in 2020 are $557,581 or 4.48% of the amount budgeted. • Sales tax collections represent only 3-months of collections thus far because taxes collected in April are not remitted to the City by the State until the latter part of May. Collections are currently at $5,718,105 or 23.21 % of the amount budgeted. • Gambling taxes are at $10,599 or 2.76% of the amount budgeted. Gambling taxes are paid quarterly with first quarter payments due by April 30. However due to COVID-19, Council approved the delay of first quarter payments of gambling taxes until September 30 and second quarter until November 30. • Franchise Fee and Business Registration revenues are typically received in the month following a calendar year quarter. So far in 2020 we have received $318,779 or 26.13% of the amount budgeted. • State shared revenues are composed of State of Washington distributions that include items such as liquor board profits, liquor excise tax, streamlined sales tax mitigation and criminal justice monies. Most of these revenues are paid by the State in the month following a calendar quarter. Through April we've received remittances totaling $567,199 or 33.60% of the amount budgeted. • Fines and forfeitures revenues are composed of monthly remittances from Spokane County with payments made in the month following the actual assessment of a fine and false alarm fees. Through April we've received remittances through the month of March with receipts of $213,713 or 19.83% of the amount budgeted. • Community and Public Works service revenues are largely composed of building permit and plan review fees as well as right of way permits. Revenues are currently at $1,236,347 or 58.05% of the amount budgeted. • Recreation program revenues are composed of revenues generated by the variety of parks and recreation programs including classes, swimming pools (in -season), and CenterPlace. Currently, revenues total $118,814 or 18.02% of the amount budgeted. Recurring expenditures are currently at $11,781,166 or 27.26% of the amount budgeted with 33.33% of the year elapsed. P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 04 30.docx Page 2 Investments (page 18) Investments at April 30 total $72,731,050 and are composed of $67,595,830 in the Washington State Local Government Investment Pool and $5,135,220 in bank CDs. Total Sales Tax Receipts (page 19) Total sales tax receipts reflect State remittances through April and total $6,472,117 including general, criminal justice, and public safety taxes. This figure is $321,078 or 5.22% greater than the same three-month period in 2019. This does not yet reflect the effects of COVID-19 on City tax collections, which we expect to start seeing in the next month's collections. Economic Indicators (pages 20 — 22) The following economic indicators provide information pertaining to three different sources of tax revenue that provide a good gauge of the health and direction of the overall economy. 1. Sales taxes (page 20) provide a sense of how much individuals and businesses are spending on the purchase of goods. 2. Hotel / Motel taxes (page 21) provide us with a sense of overnight stays and visits to our area by tourists or business travelers. 3. Real Estate Excise taxes (page 22) provide us with a sense of real estate sales. Page 20 provides a 10-year history of general sales tax receipts (not including public safety or criminal justice) with monthly detail beginning January 2011. • Compared with calendar year 2019, 2020 collections have increased by $279,265 or 5.13%. • Tax receipts reached an all-time high in 2019 at $24,204,762, besting the previous record year of 2018 when $22,642,856 was collected. • This activity does not yet reflect the effects of COVID-19 on the economy. Page 21 provides a 10-year history of hotel/motel tax receipts with monthly detail beginning January 2011. • Compared with calendar year 2019, 2020 collections have decreased by $129 or 0.12%. • Collections reached an all-time high in 2019 of $743,851, exceeding the previous high set in 2018 of $646,976. • This activity does not yet reflect the effects of COVID-19 on the economy. Page 22 provides a 10-year history of real estate excise tax receipts with monthly detail beginning January 2011. • Compared with calendar year 2019, 2020 collections have increased by $145,282 or 28.27%. • Collections reached an all-time high in 2018 of $3,800,432, and subsequently decreased to $3,333,549 in 2019. • This activity does not yet reflect the effects of COVID-19 on the economy. Debt Capacity and Bonds Outstandinq (page 23) This page provides information on the City's debt capacity, or the dollar amount of General Obligation (G.O.) Bonds the City may issue, as well as an amortization schedule of the bonds the City currently has outstanding. • The maximum amount of G.O. bonds the City may issue is determined by the assessed value for property taxes which for 2020 is $10,200,357,539. Following the December 1, 2019 debt service payments, the City has $11,715,000 of nonvoted G.O. bonds outstanding which represents 7.66% of our nonvoted bond capacity, and 1.53% of our total debt capacity for all types of bonds. Of this amount: P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 04 30.docx Page 3 o $4,390,000 remains on bonds issued for the construction of CenterPlace. These bonds are repaid with a portion of the 1/10 of 1 % sales tax that is collected by the Spokane Public Facilities District. o $590,000 remains on bonds issued for road and street improvements around CenterPlace. The bonds are repaid with a portion of the real estate excise tax collected by the City. o $6,735,000 remains on bonds issued for construction of the new City Hall. The bonds are to be repaid with General Fund revenues. Street Fund Revenue Sources (pages 24 and 25) The last two charts reflect a history for the two primary sources of revenue in Street Fund #101. These include: • Page 24 provides a 10-year history of Motor Vehicle Fuel Tax collections with monthly detail beginning January 2011. o Compared with calendar year 2019, 2020 collections have increased by $8,065 or 1.75%. o Tax receipts peaked in 2007 at just approximately $2.1 million, and subsequently decreased to a range of approximately $1,858,000 to $2,027,000 in the years 2011 through 2019. o This activity does not yet reflect the effects of COVID-19 on the economy. • Page 25 provides a 10-year history of Telephone Utility Tax collections with monthly detail beginning January 2011. o Compared with 2019, 2020 collections have decreased by $40,202 or 9.86%. Unlike tax revenues collected by the State and remitted monthly, these taxes are paid to the City directly by the service provider. Consequently there is not a "clean cutoff' in terms of when a vendor pays the tax. o Tax receipts peaked in 2009 at $3,054,473 and have decreased each year since due to what we suspect is the reduction in land lines by individual households. o The 2020 Budget is set at $1,521,000. We will watch actual receipts closely as the year progresses. o The City has hired a consultant to perform an audit of providers who pay the telephone utility tax. The audit will assess whether providers are accurately remitting all taxes owed to the City, and the consultant will be paid on a contingent basis out of revenues recovered from the telephone providers. Three audits have been completed, and the City has received payments totaling $398,865 which is comprised of recovered revenue plus interest and penalty fees. Per the contract with the consultant, the City paid $99,716 or 25% of the amount recovered. P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 04 30.docx Page 4 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 #001 - GENERAL FUND RECURRING ACTIVITY Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget Revenues Property Tax 12,432,400 493,450 557,581 (11,874,819) 4.48% Sales Tax 24,632,900 1,687,355 5,718,105 (18,914,795) 23.21% Sales Tax - Public Safety 1,162,600 75,903 273,719 (888,881) 23.54% Sales Tax - Criminal Justice 2,052,300 134,357 480,293 (1,572,007) 23.40% Gambling Tax and Leasehold Excise Tax 384,000 7,527 10,599 (373,401) 2.76% Franchise Fees/Business Registration 1,220,000 287,898 318,779 (901,221) 26.13% State Shared Revenues 1,688,200 299,698 567,199 (1,121,001) 33.60% Fines, Forfeitures and Penalties 1,077,700 86,749 213,713 (863,987) 19.83% Community and Public Works 2,129,800 240,840 1,236,347 (893,453) 58.05% Recreation Program Revenues 659,200 3,510 118,814 (540,386) 18.02% Miscellaneous Department Revenue 21,000 6 20,850 (150) 99.29% Miscellaneous & Investment Interest 791,700 31,826 136,225 (655,475) 17.21% Transfers in - #105 (h/m tax-CP advertising) 30,000 0 0 (30,000) 0.00% Total Recurring Revenues 48,281,800 3,349,118 9,652,225 (38,629,575) 19.99% Expenditures City Council 622,187 28,307 197,782 424,405 31.79% City Manager 997,882 72,599 297,073 700,809 29.77% City Attorney 707,942 49,548 204,288 503,654 28.86% Public Safety 26,599,214 2,251,913 7,841,606 18,757,608 29.48% Deputy City Manager 277,187 21,931 113,557 163,630 40.97% Finance / IT 1,478,523 109,675 444,129 1,034,394 30.04% Human Resources 313,316 25,376 97,501 215,815 31.12% City Hall Operations and Maintenance 296,270 17,048 91,504 204,766 30.89% Community & Public Works - Engineering 1,971,731 105,336 511,406 1,460,325 25.94% Community & Public Works - Econ Dev 1,119,829 70,070 273,757 846,072 24.45% Community & Public Works - Bldg & Plan 2,420,414 174,897 757,124 1,663,290 31.28% Parks & Rec - Administration 352,227 27,834 98,317 253,910 27.91% Parks & Rec - Maintenance 917,500 70,186 229,279 688,221 24.99% Parks & Rec - Recreation 325,921 15,963 56,500 269,421 17.34% Parks & Rec - Aquatics 501,853 2,564 5,997 495,856 1.20% Parks & Rec - Senior Center 43,447 1,730 9,759 33,688 22.46% Parks & Rec -CenterPlace 965,359 71,857 253,261 712,098 26.23% General Government 1,321,111 53,991 298,325 1,022,786 22.58% Transfers out - #204 ('16 LTGO bond debt service) 401,450 0 0 401,450 0.00% Transfers out - #309 (park capital projects) 160,000 0 0 160,000 0.00% Transfers out - #311 (Pavement Preservation) 982,023 0 0 982,023 0.00% Transfers out - #501 (CenterPlace kitchen reserve) 36,600 0 0 36,600 0.00% Transfers out - #502 (insurance premium) 410,000 0 0 410,000 0.00% Total Recurring Expenditures 43,221,986 3,170,825 11,781,166 31,440,820 27.26% Recurring Revenues Over (Under) Recurring Expenditures 5,059,814 178,293 (2,128,941) (7,188,755) Page 5 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 #001 - GENERAL FUND - continued NONRECURRING ACTIVITY Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget Revenues Potential Settlement Proceeds 0 0 0 0 0.00% Grant Proceeds 70,000 0 0 (70,000) 0.00% Miscellaneous 0 0 0 0 0.00% Total Nonrecurring Revenues 70,000 0 0 (70,000) 0.00% Expenditures Public Safety (carpet & workstation replacement) 15,000 0 0 15,000 0.00% Public Safety (full facility generator) 0 0 84,799 (84,799) 0.00% Public Safety (SV Police Athletic League Grant) 0 0 1,263 (1,263) 0.00% City Hall Chambers (east wall repairs) 0 34,471 100,979 (100,979) 0.00% Building (equipment for newcodeenfofficer) 13,700 0 0 13,700 0.00% Community & Public Works (Appleway Trail ED St/ 0 12,612 15,584 (15,584) 0.00% Parks & Rec (CenterPlace carpeting) 9,500 0 0 9,500 0.00% General Government (City Hall generator) 0 0 0 0 0.00% General Government - IT capital replacements 190,000 0 81,653 108,347 42.98% Gen Gov (Covid-19 Emergency Social Serv.) 0 33,000 33,000 (33,000) 0.00% Transfers out - #122 (replenish reserve) 0 0 0 0 0.00% Transfers out - #309 (CenterPlace West Lawn) 1,500,000 0 0 1,500,000 0.00% Transfers out - #501 (new code enf vehicle) 30,000 0 0 30,000 0.00% Total Nonrecurring Expenditures 1,758,200 80,083 317,277 1,440,923 18.05% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (1,688,200) (80,083) (317,277) 1,370,923 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 3,371,614 98,211 (2,446,218) (5,817,832) Beginning fund balance 37,426,121 37,426,121 Ending fund balance 40,797,735 34,979,903 Page 6 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 SPECIAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget Revenues Telephone Utility Tax 1,521,000 121,938 367,678 (1,153,322) 24.17% Motor Vehicle Fuel (Gas) Tax 2,046,700 145,666 467,455 (1,579,245) 22.84% Multimodal Transportation 131,500 0 32,965 (98,535) 25.07% Right -of -Way Maintenance Fee 70,000 0 1,690 (68,310) 2.41% Investment Interest 17,000 130 130 (16,870) 0.77% Miscellaneous Revenue 10,000 0 151 (9,849) 1.51% Total Recurring Revenues 3,796,200 267,734 870,069 (2,926,131) Expenditures Wages / Benefits / Payroll Taxes 1,059,613 63,009 366,819 692,794 Supplies 146,050 57,298 65,632 80,418 Services & Charges 2,426,467 54,035 248,386 2,178,081 Snow Operations 543,776 58,033 420,779 122,997 Intergovernmental Payments 922,000 44,894 132,762 789,238 Transfers out - #501 (non -plow vehicle rental) 14,500 0 0 14,500 Transfers out - #501 (plow replace) 48,500 0 0 48,500 22.92% 34.62% 44.94% 10.24% 77.38% 14.40% 0.00% 0.00% Total Recurring Expenditures 5,160,906 277,270 1,234,378 3,926,528 23.92% Recurring Revenues Over (Under) Recurring Expenditures (1,364,706) (9,536) (364,308) 1,000,398 NONRECURRING ACTIVITY Revenues Insurance Proceeds (traffic signal cabinet) Transfers in - #312 0 1,258 1,258 1,258 1,364,706 0 0 (1,364,706) 0.00% 0.00% Total Nonrecurring Revenues 1,364,706 1,258 1,258 (1,363,448) 0.09% Expenditures Spare Traffic Signal Equipment 0 0 0 0 0.00% Trailer for Sidewalk Snow Removal 0 0 0 0 0.00% Emergency Traffic Control Repairs 0 0 7,142 (7,142) 0.00% Total Nonrecurring Expenditures 0 0 7,142 (7,142) 0.00% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures 1,364,706 1,258 (5,884) (1,370,590) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 0 (8,278) (370,192) (370,192) Beginning fund balance 557,242 557,242 Ending fund balance 557,242 187,050 #103 - PATHS & TRAILS Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest 8,600 614 1,972 (6,628) 22.93% 400 9 41 (359) 10.20% Total revenues 9,000 624 2,012 (6,988) 22.36% Expenditures Capital Outlay 0 0 0 0 0.00% Transfers out - #309 (Appleway Trail - Sullivan to C 0 0 0 0 0.00% Total expenditures 0 0 0 0 0.00% Revenues over (under) expenditures 9,000 624 2,012 (6,988) Beginning fund balance 14,115 14,115 Ending fund balance 23,115 16,128 Page 7 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 SPECIAL REVENUE FUNDS - continued Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget #104 - TOURISM FACILITIES HOTEL/MOTEL TAX FUND Revenues Tourism Facilities Hotel/Motel Tax 420,000 23,298 65,172 (354,828) 15.52% Investment Interest 24,000 1,595 7,282 (16,718) 30.34% Transfers in - #105 0 0 0 0 0.00% Total revenues Expenditures Capital Expenditures Total expenditures 444,000 24,893 72,454 (371,546) 16.32% 0 0 0 0 0.00% 0 0 0 0 0.00% Revenues over (under) expenditures 444,000 24,893 72,454 (371,546) Beginning fund balance 2,690,945 2,690,945 Ending fund balance 3,134,945 2,763,398 #106 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax 650,000 37,395 104,634 (545,366) 16.10% Investment Interest 6,000 343 1,584 (4,416) 26.41% Total revenues 656,000 37,738 106,218 (549,782) 16.19% Expenditures Transfers out - #001 30,000 0 0 30,000 0.00% Transfers out - #104 0 0 0 0 0.00% Tourism Promotion 795,000 26,178 30,345 764,655 3.82% Total expenditures 825,000 26,178 30,345 Revenues over (under) expenditures (169,000) 11,560 75,873 Beginning fund balance 518,240 518,240 Ending fund balance 349,240 594,113 794,655 (1,344,438) 3.68% #106 - SOLID WASTE Revenues Solid Waste Administrative Fees 225,000 36,940 66,493 158,507 29.55% Solid Waste Road Wear Fee 1,500,000 72,635 338,614 1,161,386 22.57% Investment Interest 12,000 521 5,429 6,571 45.24% Total revenues 1,737,000 110,096 410,536 1,326,464 23.63% Expenditures Transfers out - #311 1,500,000 0 0 1,500,000 0.00% Education & Contract Administration 237,000 9,539 23,490 213,510 9.91% Total expenditures 1,737,000 9,539 23,490 1,713,510 1.35% Revenues over (under) expenditures 0 100,557 387,047 (387,047) Beginning fund balance 540,182 540,182 Ending fund balance 540,182 927,229 Page 8 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 SPECIAL REVENUE FUNDS - continued #107 - PEG FUND Revenues Comcast PEG Contribution Investment Interest Total revenues Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget 79,000 19,573 19,573 59,427 24.78% 0 85 350 (350) 0.00% 79,000 19,657 19,923 59,077 25.22% Expenditures PEG Reimbursement - CMTV 39,500 0 0 39,500 0.00% Capital Outlay 45,500 0 1,331 44,169 2.93% Total expenditures 85,000 0 1,331 83,669 1.57% Revenues over (under) expenditures (6,000) 19,657 18,591 (24,591) Beginning fund balance 128,255 128,255 Ending fund balance 122,255 146,846 #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest Transfers in 0 0 0 0 0 0.00% 0 0 0 0.00% Total revenues 0 0 0 0 0.00% Expenditures Operations Total expenditures 0 0 0 0 0.00% 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 0 Beginning fund balance 300,000 300,000 Ending fund balance 300,000 300,000 #121 - SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest Transfers in 0 0 0 0 0 0.00% 0 0 0 0.00% Total revenues 0 0 0 0 0.00% Expenditures Operations Total expenditures 0 0 0 0 0.00% 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 0 Beginning fund balance 5,500,000 5,500,000 Ending fund balance 5,500,000 5,500,000 #122 - WINTER WEATHER RESERVE FUND Revenues Investment Interest 5,400 14 1,107 (4,293) 20.51% Transfers in - #001 0 0 0 0 0.00% Grant Proceeds - Windstorm Cleanup 0 0 0 0 0.00% Subtotal revenues 5,400 14 1,107 (4,293) 20.51% Expenditures Snow removal expenses 500,000 0 0 500,000 0.00% Transfers out - #101 0 0 0 0 0.00% Total expenditures 500,000 0 0 500,000 0.00% Revenues over (under) expenditures (494,600) Beginning fund balance 23,336 Ending fund balance (471,264) 14 1,107 23,336 24,443 (504,293) Page 9 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 DEBT SERVICE FUNDS Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget #204 - DEBT SERVICE FUND Revenues Spokane Public Facilities District 459,500 0 0 (459,500) 0.00% Transfers in -#001 401,450 0 0 (401,450) 0.00% Transfers in - #301 80,375 0 0 (80,375) 0.00% Transfers in - #302 80,375 0 0 (80,375) 0.00% Total revenues 1,021,700 0 0 (1,021,700) 0.00% Expenditures Debt Service Payments - CenterPlace 459,500 0 0 459,500 0.00% Debt Service Payments - Roads 160,750 0 0 160,750 0.00% Debt Service Payments -'16 LTGO Bond 401,450 0 0 401,450 0.00% Total expenditures 1,021,700 0 0 1,021,700 0.00% Revenues over (under) expenditures 0 0 0 (2,043,400) Beginning fund balance 0 0 Ending fund balance 0 0 Page 10 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 CAPITAL PROJECTS FUNDS #301 - CAPITAL PROJECTS FUND Revenues REET 1 - Taxes Investment Interest Total revenues Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget 1,000,000 120,437 343,607 (656,393) 34.36% 35,000 1,786 9,265 (25,735) 26.47% 1,035,000 122,222 352,872 (682,128) 34.09% Expenditures Transfers out - #204 80,375 0 0 80,375 0.00% Transfers out-#303 1,089,148 0 (14,126) 1,103,274 -1.30% Transfers out - #311 (pavement preservation) 772,639 0 0 772,639 0.00% Transfers out - #314 49,041 0 70,741 (21,700) 144.25% Total expenditures 1,991,203 0 56,615 1,934,588 2.84% Revenues over (under) expenditures (956,203) 122,222 296,257 (2,616,716) Beginning fund balance 2,798,194 2,798,194 Ending fund balance 1,841,991 3,094,451 #302 - SPECIAL CAPITAL PROJECTS FUND Revenues REET 2 - Taxes Investment Interest Total revenues 1,000,000 120,437 343,607 (656,393) 34.36% 35,000 2,736 14,057 (20,943) 40.16% 1,035,000 123,172 357,664 (677,336) 34.56% Expenditures Transfers out - #204 80,375 0 0 80,375 0.00% Transfers out - #303 404,318 0 9,069 395,249 2.24% Transfers out - #311 (pavement preservation) 772,638 0 0 772,638 0.00% Total expenditures 1,257,331 0 9,069 1,248,262 0.72% Revenues over (under) expenditures (222,331) 123,172 348,595 (1,925,598) Beginning fund balance 4,391,870 4,391,870 Ending fund balance 4,169,539 4,740,465 Page 11 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 CAPITAL PROJECTS FUNDS - continued Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget #303 STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 6,596,718 37,851 174,566 (6,422,152) 2.65% Developer Contribution 110,499 0 0 (110,499) 0.00% Transfers in -#301 1,089,148 0 (14,126) (1,103,274) -1.30% Transfers in - #302 404,318 0 9,069 (395,249) 2.24% Transfers in - #312 114,512 0 0 (114,512) 0.00% Investment Interest 0 0 0 0 0.00% Total revenues 8,315,195 37,851 169,509 (8,145,686) 2.04% Expenditures 069 Park Road Reconstruction #2 285,164 0 0 285,164 0.00% 205 Sprague/Barker Intersection Improvement 195,499 11,318 28,253 167,246 14.45% 249 Sullivan & Wellesley Intersection 100,000 1,838 30,668 69,332 30.67% 259 North Sullivan ITS Project 810,232 30,733 44,322 765,910 5.47% 267 Mission SW - Bowdish to Union 19,852 0 134 19,718 0.67% 273 Barker/I-90 Interchange 90,000 21,599 58,930 31,070 65.48% 275 Barker Rd Widening - River to Euclid 3,729,143 20,301 66,919 3,662,224 1.79% 276 Barker Rd Widening - Euclid to Trent 0 0 24,252 (24,252) 0.00% 285 Indiana Ave Pres - Evergreen to Sullivan 300,000 202 202 299,798 0.07% 291 Adams Sidewalk Infill Project 444,645 2,390 13,280 431,365 2.99% 292 Mullen Preservation: Broadway -Mission 0 0 3,947 (3,947) 0.00% 293 2018 CSS Citywide Reflective Signal BP 99,000 416 854 98,146 0.86% 294 Citywide Reflective Post Panels 47,775 173 1,353 46,422 2.83% 295 Garland Avenue Extension 150,000 4,603 8,345 141,655 5.56% 299 Argonne Rd Concrete Pvmt Indiana to Mont 32,000 2,391 22,430 9,570 70.09% 300 Pines & Mission Intersection Improvements 516,000 353 3,801 512,199 0.74% 301 Park & Mission Intersection Improvements 0 666 2,614 (2,614) 0.00% 302 Ella Sidewalk: Broadway to Alki 371,760 24,102 44,270 327,490 11.91% 303 S. Conklin Road Sidewalk 124,125 1,400 12,483 111,642 10.06% 310 Sullivan Rd Overcrossing UP RR Deck Rep. 0 302 409 (409) 0.00% 313 Barker Road/Union Pacific Crossing 0 3,052 3,052 (3,052) 0.00% Contingency 1,000,000 0 0 1,000,000 0.00% Total expenditures 8,315,195 125,840 370,519 7,944,677 Revenues over (under) expenditures 0 (87,989) (201,010) (16,090,363) Beginning fund balance 67,402 67,402 Ending fund balance 67,402 (133,607) Note: Work performed in the Street Capital Projects Fund for preservation projects is for items such as sidewalk upgrades that were bid with the pavement preservation work. 4.46% Page 12 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 CAPITAL PROJECTS FUNDS - continued #309 - PARKS CAPITAL PROJECTS FUND Revenues Grant Proceeds Transfers in - #001 Transfers in - #312 Investment Interest Miscellaneous Revenues Budget Year Elapsed = 2020 33.33% 2020 Actual Actual through Budget % of Budget April April 30 Remaining Budget 2,500 0 389,144 386,644 15565.74% 1,660,000 0 0 (1,660,000) 0.00% 7,500 0 25,768 18,268 343.57% 0 0 0 0 0.00% 0 0 (0) (0) 0.00% Total revenues 1,670,000 0 414,912 (1,255,088) 24.85% Expenditures 268 Appleway Trail - Evergreen to Sullivan 5,000 211,862 480,520 (475,520) 9610.40% 296 Browns Park 2019 Construction Improvements 5,000 2,078 (63,157) 68,157 -1263.15% 304 CenterPlace West Lawn Phase 2 1,500,000 175,917 218,503 1,281,497 14.57% 305 CenterPlace Roof Repair 0 1,310 21,563 (21,563) 0.00% 314 Balfour Park Frontage Improvements 0 302 302 (302) 0.00% 315 Brown's Park 2020 Improvements 0 292 292 (292) 0.00% 316 Balfour Park Improvements - Phase 1 0 631 631 (631) 0.00% Total expenditures 1,510,000 392,391 658,654 Revenues over (under) expenditures 160,000 (392,391) (243,742) Beginning fund balance 78,627 78,627 Ending fund balance 238,627 (165,115) #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 851,346 (2,106,435) 43.62% 17,000 495 2,283 (14,717) 13.43% Total revenues 17,000 495 2,283 (14,717) 13.43% Expenditures Transfers out 0 0 0 0 0.00% Total expenditures 0 0 0 0 0.00% Revenues over (under) expenditures 17,000 495 2,283 (14,717) Beginning fund balance 855,985 855,985 Ending fund balance 872,985 858,269 Note: The fund balance includes $839,285.10 paid by the Library District for 2.82 acres at the Balfour Park site. If the District does not succeed in getting a voted bond approved by October 2017 then the City may repurchase this land at the original sale price of $839,285.10. Page 13 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 CAPITAL PROJECTS FUNDS - continued Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget #311 - PAVEMENT PRESERVATION FUND Revenues Transfers in - #001 982,023 0 0 (982,023) 0.00% Transfers in - #106 1,500,000 0 0 (1,500,000) 0.00% Transfers in - #301 772,639 0 0 (772,639) 0.00% Transfers in - #302 772,638 0 0 (772,638) 0.00% Grant Proceeds 10,588 83,873 84,251 73,663 795.72% Developer Contribution 0 0 0 0 0.00% Investment Interest 0 2,561 4,982 4,982 0.00% Total revenues 4,037,888 86,433 89,233 (3,948,655) 2.21% Expenditures Pre -Project GeoTech Services 50,000 0 0 50,000 0.00% Pavement Preservation 4,217,523 0 0 4,217,523 0.00% 248 Sprague Street Pres - Sullivan to Corbin 0 0 (167) 167 0.00% 267 Mission SW - Bowdish to Union 0 0 66 (66) 0.00% 269 Evergreen - Mission Connector to Indiana 0 30 150 (150) 0.00% 284 Argonne Rd. Pres - Valleyway to Broadway 0 0 23 (23) 0.00% 285 Indiana Ave Pres - Evergreen to Sullivan 0 10,941 36,031 (36,031) 0.00% 287 University Pres - Dishman Mica to 16th 0 0 7,500 (7,500) 0.00% 290 2019 Local Access Streets (Midilome) 0 0 7,500 (7,500) 0.00% 292 Mullen Preservation: Broadway -Mission 0 0 127 (127) 0.00% 297 2019 SCWD#3 Street Preservation 0 0 (3,199) 3,199 0.00% 309 Local Access Streets: Barker Homes 0 11,252 25,869 (25,869) 0.00% Total expenditures 4,267,523 22,223 73,900 Revenues over (under) expenditures (229,635) 64,211 15,333 Beginning fund balance 4,425,201 4,425,201 Ending fund balance 4,195,566 4,440,534 4,193,623 (8,142,278) 1.73% #312 - CAPITAL RESERVE FUND Revenues Transfers in - #001 0 0 0 0 0.00% Transfers in - #310 0 0 0 0 0.00% Investment Interest 100,000 7,471 38,984 (61,016) 38.98% Total revenues 100,000 7,471 38,984 (61,016) 38.98% Expenditures Transfers out - #101 1,364,706 0 0 1,364,706 0.00% Transfers out - #303 114,512 0 0 114,512 0.00% Transfers out - #309 7,500 0 25,768 (18,268) 343.57% Transfers out - #314 64,192 0 0 64,192 0.00% Land Acquisitions 0 0 4,110 (4,110) 0.00% Total expenditures 1,550,910 0 29,878 1,521,032 1.93% Revenues over (under) expenditures (1,450,910) 7,471 9,106 (1,582,048) Beginning fund balance 12,936,816 12,936,816 Ending fund balance 11,485,906 12,945,922 Page 14 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 CAPITAL PROJECTS FUNDS - continued Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget #313 - CITY HALL CONSTRUCTION FUND Revenues Investment Interest 0 0 0 0 0.00% Total revenues 0 0 0 0 0.00% Expenditures Transfers out - #312 0 0 0 0 0.00% Total expenditures 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 0 Beginning fund balance 0 0 Ending fund balance 0 0 #314 - RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 12,808,751 0 1,033,775 (11,774,976) 8.07% Investment Interest 0 0 10 10 0.00% Transfers in - #301 49,041 0 70,741 21,700 144.25% Transfers in - #312 64,192 0 0 (64,192) 0.00% Total revenues 12,921,984 0 1,104,526 (11,817,458) 8.55% Expenditures 143 Barker Rd/BNSF Grade Separation 11,475,292 405,797 1,410,596 10,064,696 12.29% 223 Pines Rd Underpass 1,562,500 14,687 31,434 1,531,066 2.01% 311 Sullivan Rd./SR 290 Interchange Project 0 170 170 (170) 0.00% Total expenditures 13,037,792 420,654 1,442,200 Revenues over (under) expenditures (115,808) (420,654) (337,674) Beginning fund balance 1,008,638 1,008,638 Ending fund balance 892,830 670,964 11,595,592 (23,413,050) 11.06% Page 15 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees Investment Interest Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget 1,900,000 95,556 105,751 (1,794,249) 40,000 1,293 6,141 (33,859) 5.57% 15.35% Total Recurring Revenues 1,940,000 96,848 111,892 (1,828,108) 5.77% Expenditures Wages / Benefits / Payroll Taxes 519,582 33,929 135,879 383,703 26.15% Supplies 14,750 25,762 32,049 (17,299) 217.28% Services & Charges 1,298,153 78,508 121,335 1,176,818 9.35% Intergovernmental Payments 37,500 0 0 37,500 0.00% Vehicle Rentals - #501 14,000 0 0 14,000 0.00% Total Recurring Expenditures 1,883,985 138,199 289,263 1,594,722 15.35% Recurring Revenues Over (Under) Recurring Expenditures 56,015 (41,351) (177,371) (233,386) NONRECURRING ACTIVITY Revenues Grant Proceeds 59,828 304 304 (59,524) 0.51% Total Nonrecurring Revenues 59,828 304 304 (59,524) 0.51% Expenditures Capital - various projects 500,000 9,285 9,285 490,715 1.86% 285 Indiana Ave Pres - Evergreen to Sullivan 0 0 37 (37) 0.00% 302 Ella Sidewalk: Broadway to Alki 0 3,096 3,096 (3,096) 0.00% 303 S. Conklin Road Sidewalk 0 126 126 (126) 0.00% 309 Local Access Streets: Barker Homes 0 0 1,585 (1,585) 0.00% Watershed Studies 80,000 14,197 19,701 60,299 24.63% Stormwater Comprehensive Plan 100,000 0 0 100,000 0.00% Total Nonrecurring Expenditures 680,000 26,703 33,829 646,171 4.97% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (620,172) (26,399) (33,525) 586,647 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (564,157) (67,750) (210,896) 353,261 Beginning working capital 2,181,079 2,181,079 Ending working capital 1,616,922 1,970,182 Note: Work performed in the Stormwater Fund for preservation projects is for stormwater improvements that were bid with the pavement preservation work. #403 -AQUIFER PROTECTION AREA Revenues Spokane County 460,000 0 0 (460,000) 0.00% Grant Proceeds 349,000 0 0 (349,000) 0.00% Investment Interest 20,000 1,216 5,628 (14,372) 28.14% Total revenues 829,000 1,216 5,628 (823,372) 0.68% Expenditures Capital - various projects 500,000 7,481 17,053 482,947 3.41 % Total expenditures 500,000 7,481 17,053 482,947 3.41% Revenues over (under) expenditures 329,000 (6,265) (11,426) (1,306,319) Beginning working capital 2,118,299 2,118,299 Ending working capital 2,447,299 2,106,874 Page 16 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Four -Month Period Ended April 30, 2020 INTERNAL SERVICE FUNDS Budget Year Elapsed = 2020 33.33% 2020 Budget Actual Actual through Budget April April 30 Remaining % of Budget #601 - ER&R FUND Revenues Interfund vehicle lease - #001 28,000 0 0 (28,000) 0.00% Interfund vehicle lease - #101 14,500 0 0 (14,500) 0.00% Interfund vehicle lease - #101 (plow replace) 48,500 0 0 (48,500) 0.00% Interfund vehicle lease - #402 14,000 0 0 (14,000) 0.00% Transfers in - #001 (CenterPlace kitchen reserve) 36,600 0 0 (36,600) 0.00% Transfers in - #001 (Code Enforcement Vehicle) 30,000 0 0 (30,000) 0.00% Investment Interest 19,000 791 3,793 (15,207) 19.96% Total revenues 190,600 791 3,793 (186,807) 1.99% Expenditures Small tools & minor equipment 20,000 1,356 2,195 17,805 10.97% Vehicle purchase 30,000 0 0 30,000 0.00% Snow plow purchase 235,000 0 125,590 109,410 53.44% Total expenditures 285,000 1,356 127,785 157,215 44.84% Revenues over (under) expenditures (94,400) (565) (123,992) (344,022) Beginning working capital 1,493,712 1,493,712 Ending working capital 1,399,312 1,369,720 #602 - RISK MANAGEMENT FUND Revenues Investment Interest 0 0 0 0 0.00% Transfers in - #001 410,000 0 0 (410,000) 0.00% Total revenues Expenditures Auto & Property Insurance Unemployment Claims Total expenditures Revenues over (under) expenditures Beginning working capital Ending working capital 410,000 0 0 (410,000) 0.00% 410,000 0 337,987 72,013 82.44% 0 0 0 0 0.00% 410,000 0 337,987 72,013 82.44% 0 276,004 276,004 0 (337,987) (482,013) 276,004 (61,983) SUMMARY FOR ALL FUNDS Total of Revenues for all Funds 90,026,301 4,287,937 13,787,402 Per Revenue Status Report 90,026,301 4,287,937 13,787,402 Difference - - Total of Expenditures for all Funds Per Expenditure Status Report 89,998,731 4,698,741 16,841,879 89,998,731 4,698,741 16,841,879 Total Capital expenditures (included in total expenditures) 28,331,010 977,874 2,739,429 Page 17 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Investment Report For the Four -Month Period Ended April 30, 2020 Beginning Deposits Withdrawls Interest Ending 001 General Fund 101 Street Fund 103 Trails & Paths 104 Tourism Facilities Hotel/Motel 105 Hotel/Motel 106 Solid Waste Fund 107 PEG Fund 120 CenterPlace Operating Reserve 121 Service Level Stabilization Reserve 122 Winter Weather Reserve 301 Capital Projects 302 Special Capital Projects 303 Street Capital Projects Fund 309 Parks Capital Project 310 Civic Buildings Capital Projects 311 Pavement Preservation 312 Capital Reserve Fund 313 City Hall Construction Fund 314 Railroad Grade Separation Projects 402 Stormwater Management 403 Aquifer Protection Fund 501 Equipment Rental & Replacement 502 Risk Management "Local Government Investment Pool 5/12/2020 LGI P" NW Bank CD #2068 UMPQUA CD #0689 Total Investments $ 66, 337,143.94 $ 3, 033, 287.68 $ 2,101, 932.42 $ 60,146,128.50 2,414,315.05 0.00 0.00 2,414,315.05 (1,200,000.00) 0.00 0.00 (1,200,000.00) 44,371.30 0.00 0.00 44,371.30 $ 67, 595, 830.29 $ 3, 033, 287.68 $ 2,101, 932.42 $ 72, 731, 050.39 matures: 7/23/2020 11/15/2020 rate: 2.50 1.75% Balance Earnings Current Period Year to date Budget $ 35,170,460.38 $ 23,326.07 198, 751.72 130.46 14,178.65 9.31 2, 429, 463.66 1,594.75 522, 319.20 342.86 793,710.22 521.01 129,101.16 84.74 0.00 0.00 5, 500, 000.00 0.00 21,489.21 14.11 2, 720, 511.26 1,785.80 4,167,617.37 2,735.71 0.00 0.00 0.00 0.00 754,553.60 495.30 3,900,705.92 2,560.50 11,381,509.84 7,471.06 0.00 0.00 0.00 0.00 1, 969, 386.53 1,292.75 1, 852, 373.79 1,215.94 1,204,917.88 790.93 0.00 0.00 106,244.99 $ 700,000.00 130.46 17, 000.00 40.81 400.00 7,281.64 24,000.00 1,584.30 6,000.00 5,429.39 12, 000.00 349.88 0.00 0.00 0.00 0.00 0.00 1,107.36 5,400.00 9,264.67 35,000.00 14,056.85 35,000.00 0.00 0.00 0.00 0.00 2,283.47 17, 000.00 4,982.03 0.00 38, 983.63 100, 000.00 0.00 0.00 10.04 0.00 6,141.13 40,000.00 5,627.91 20, 000.00 3,793.01 19, 000.00 0.00 0.00 $ 72,731,050.39 $ 44,371.30 $ 207,311.57 $ 1,030,800.00 Page 18 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 04 30 CITY OF SPOKANE VALLEY, WA Sales Tax Receipts For the Four -Month Period Ended April 30, 2020 Month Received 2019 2020 5/12/2020 Difference 0/0 February 2,530,639.23 2,559,296.59 28,657.36 1.13% March 1,861,849.29 2,015,206.15 153,356.86 8.24% April 1,758,550.64 1,897,614.47 139,063.83 7.91 6,151,039.16 6,472,117.21 321,078.05 5.22% May 2,208,350.09 June 2,200,987.91 July 2,333,320.72 August 2,530,196.67 September 2,405,945.26 October 2,504,583.31 November 2,422,514.22 December 2,341,644.57 January 2,284,009.79 27,382,591.70 6,472,117.21 Sales tax receipts reported here reflect remittances for general sales tax, criminal justice sales tax and public safety tax. The sales tax rate for retail sales transacted within the boundaries of the City of Spokane Valley is 8.9%. The tax that is paid by a purchaser at the point of sale is remitted by the vendor to the Washington State Department of Revenue who then remits the taxes back to the various agencies that have imposed the tax. The allocation of the total 8.9% tax rate to the agencies is as follows: - State of Washington 6.50% - City of Spokane Valley 0.85% - Spokane County 0.15% - Spokane Public Facilities District 0.10% * - Criminal Justice 0.10% - Public Safety 0.10% * 2.40% local tax - Juvenile Jail 0.10% * - Mental Health 0.10% * - Law Enforcement Communications 0.10% * - Spokane Transit Authority 0.80% * 8.90% * Indicates voter approved sales taxes In addition to the .85% reported above that the City receives, we also receive a portion of the Criminal Justice and Public Safety sales taxes. The distribution of those taxes is computed as follows: Criminal Justice: The tax is assessed county -wide and of the total collected, the State distributes 10% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the County and the cities within the County. Public Safety: The tax is assessed county -wide and of the total collected, the State distributes 60% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the cities within the County. Page 19 P:\Finance\Finance Activity Reports\Tax Revenue\Sales Tax\2020\sales tax collections 2020 CITY OF SPOKANE VALLEY, WA Sales Tax Collections - For the years 2011 through 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 January 1,460,548 1,589,887 1,671,269 1,677,887 1,732,299 1,863,225 1,992,273 2,078,412 2,240,908 February 990,157 1,009,389 1,133,347 1,170,640 1,197,323 1,316,682 1,369,740 1,536,252 1,648,657 March 1,015,762 1,067,733 1,148,486 1,201,991 1,235,252 1,378,300 1,389,644 1,564,282 1,549,275 Collected to date 2,253,852 1,776,898 1,687,355 4/28/2020 2019 to 2020 Difference $ ok 12,944 128,241 138,080 0.58% 7.78% 8.91% 3,466,467 3,667,009 3,953,102 4,050,518 4,164,874 4,558,207 4,751,657 5,178,946 5,438,840 5,718,105 279,265 5.13% April 1,284,180 1,277,621 1,358,834 1,448,539 1,462,096 1,640,913 1,737,933 1,926,551 1,955,470 0 May 1,187,737 1,174,962 1,320,449 1,400,956 1,373,710 1,566,178 1,564,119 1,762,119 1,946,112 0 June 1,248,218 1,290,976 1,389,802 1,462,558 1,693,461 1,641,642 1,751,936 1,871,077 2,067,987 0 July 1,332,834 1,302,706 1,424,243 1,545,052 1,718,428 1,776,653 1,935,028 2,053,961 2,232,342 0 August 1,279,500 1,299,678 1,465,563 1,575,371 1,684,700 1,746,371 1,877,899 1,980,940 2,121,051 0 September 1,294,403 1,383,123 1,466,148 1,552,736 1,563,950 1,816,923 1,946,689 2,019,198 2,223,576 0 October 1,291,217 1,358,533 1,439,321 1,594,503 1,618,821 1,822,998 1,898,067 2,005,836 2,134,985 0 November 1,217,933 1,349,580 1,362,021 1,426,254 1,487,624 1,652,181 1,768,817 1,925,817 2,064,504 0 December 1,247,920 1,323,189 1,408,134 1,383,596 1,441,904 1,664,983 1,856,989 1,918,411 2,019,895 0 Total Collections 14,850,409 15,427,377 16,587,617 17,440,083 18,209,568 19,887,049 21,089,134 22,642,856 24,204,762 5,718,105 Budget Estimate 14,210,000 14,210,000 15,250,000 16,990,000 17,628,400 18,480,500 19,852,100 20,881,900 22,917,000 24,632,900 Actual over (under) budg 640,409 1,217,377 1,337,617 450,083 581,168 1,406,549 1,237,034 1,760,956 1,287,762 (18,914,795) Total actual collections as a % of total budget 104.51 % 108.57% 108.77% 102.65% 103.30% 107.61 % 106.23% 108.43% 105.62% n/a % change in annual total collected 5.34% 3.89% 7.52% 5.14% 4.41% 9.21% 6.04% 7.37% 6.90% n/a % of budget collected through March 24.39% 25.81% 25.92% 23.84% 23.63% 24.66% 23.94% 24.80% 23.73% 23.21% % of actual total collected through March 23.34% 23.77% 23.83% 23.23% 22.87% 22.92% 22.53% 22.87% 22.47% n/a Chart Reflecting History of Collections through the Month of March 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1 1 ■ March 1 1 March 1 February January 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Page 20 P:\Finance\Finance Activity Reports\Tax Revenue\Lodging Tax\2020\105 hotel motel tax 2020 CITY OF SPOKANE VALLEY, WA Hotel/Motel Tax Receipts through - March Actual for the years 2011 through 2020 2011 I 2012 I 2013 I 2014 I 2015 I 2016 I 2017 I 2018 I 2019 I 2020 January 22,212 February 22,792 March 24,611 Total Collections 21,442 21,549 25,655 24,185 25,975 27,739 25,425 26,014 29,384 27,092 27,111 32,998 31,887 27,773 34,330 27,210 26,795 31,601 28,752 28,878 31,906 31,865 32,821 40,076 36,203 31,035 37,395 4/28/2020 2019 to 2020 Difference 4,338 13.61% (1,786) (5.44%) (2,681) (6.69%) 69,616 68,646 77,898 80,823 87,201 93,991 85,606 89,536 104,762 104,633 (129) (0.12%) April 38,230 52,130 40,979 48,246 50,455 52,551 52,242 57,664 59,117 0 May 33,791 37,478 40,560 41,123 44,283 50,230 50,112 51,777 53,596 0 June 41,403 43,971 47,850 52,618 56,975 55,060 60,637 62,048 73,721 0 July 49,312 52,819 56,157 61,514 61,809 65,007 69,337 71,865 84,628 0 August 57,452 57,229 63,816 70,384 72,697 73,700 76,972 79,368 91,637 0 September 58,908 64,299 70,794 76,100 74,051 70,305 80,173 79,661 97,531 0 October 39,028 43,699 43,836 45,604 49,880 55,660 56,631 61,826 77,932 0 November 37,339 39,301 42,542 39,600 42,376 46,393 47,090 52,868 59,252 0 December 32,523 30,432 34,238 33,256 41,510 33,478 37,180 40,363 41,675 0 Total Collections 457,603 490,004 518,672 549,267 581,237 596,374 615,980 646,976 743,851 104,633 Budget Estimate 480,000 430,000 490,000 530,000 550,000 580,000 580,000 580,000 600,000 650,000 Actual over (under) budg (22,397) 60,004 28,672 19,267 31,237 16,374 35,980 66,976 143,851 (545,367) Total actual collections as a % of total budget 95.33% 113.95% 105.85% 103.64% 105.68% 102.82% 106.20% 111.55% 123.98% n/a % change in annual total collected 2.02% 7.08% 5.85% 5.90% 5.82% 2.60% 3.29% 5.03% 14.97% n/a % of budget collected through March 14.50% 15.96% 15.90% 15.25% 15.85% 16.21% 14.76% 15.44% 17.46% 16.10% % of actual total collected through March 15.21% 14.01% 15.02% 14.71% 15.00% 15.76% 13.90% 13.84% 14.08% n/a Chart Reflecting History of Collections through the Month of March 120,000 100,000 80,000 60,000 40,000 20,000 0 i 2011 2012 March ■ ■ 1 2013 2014 2015 2016 2017 2018 1 2019 2020 March • February ■ January Page 21 P:\Finance\Finance Activity Reports\Tax Revenue\REET\2020\301 and 302 REET for 2020 CITY OF SPOKANE VALLEY, WA 1st and 2nd 1/4% REET Collections through March Actual for the years 2011 through 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 January 64,128 February 36,443 March 95,880 Collected to date 46,359 56,115 71,730 56,898 155,226 72,172 61,192 67,049 81,724 96,141 103,508 165,868 104,446 83,583 220,637 153,661 124,514 282,724 239,437 146,892 310,562 120,809 199,209 193,913 212,512 242,927 203,774 196,451 174,203 284,296 209,964 365,517 408,667 560,899 696,891 513,931 659,213 April 79,681 86,537 90,377 105,448 236,521 205,654 169,060 218,842 347,528 0 May 124,692 111,627 116,165 198,870 165,748 192,806 202,734 646,397 263,171 0 June 81,579 124,976 139,112 106,676 347,421 284,897 248,768 277,424 465,044 0 July 79,629 101,049 128,921 208,199 217,375 248,899 449,654 302,941 327,636 0 August 129,472 106,517 117,150 172,536 202,525 231,200 472,420 261,626 300,312 0 September 68,020 63,517 174,070 152,323 179,849 178,046 187,348 259,492 335,824 0 October 61,396 238,095 117,806 123,505 128,833 253,038 207,895 584,792 225,216 0 November 74,753 104,886 78,324 172,227 129,870 186,434 229,800 263,115 319,161 0 December 65,077 74,300 75,429 117,682 157,919 164,180 278,995 288,912 235,726 0 Total distributed by Spokane County 960,751 1,185,707 1,321,650 1,567,429 2,131,578 2,353,822 3,007,573 3,800,432 3,333,549 Budget estimate 780,000 875,000 975,000 1,100,000 1,400,000 2,000,000 2,000,000 3,000,000 2,800,000 Actual over (under) budget 180,751 310,707 346,650 467,429 731,578 353,822 1,007,573 800,432 533,549 659,213 2,000,000 (1,340,787) Total actual collections as a % of total budget 123.17% 135.51% 135.55% 142.49% 152.26% 117.69% 150.38% 126.68% 119.06% n/a % change in annual total collected (0.16%) 23.41% 11.47% 18.60% 35.99% 10.43% 27.77% 26.36% (12.28%) n/a % of budget collected through March % of actual total collected through March 25.19% 19.91% 29.16% 19.09% 26.11% 20.43% 28.04% 23.23% 18.35% 32.96% 20.45% 14.69% 21.51% 13.40% 17.15% 17.36% 18.65% 18.34% 15.42% n/a Chart Reflecting History of Collections through the Month of March 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 March ■ 2011 2012 2013 2014 2015 2016 2017 2018 2019 5/18/2020 2019 to 2020 Difference 91,703 43,718 9,861 75.91% 21.95% 5.09% 145,282 28.27% 2020 • March • February • Ja nua ry Page 22 P:\Finance\Finance Activity Reports\Debt Capacity\2020\debt capacity 2020 CITY OF SPOKANE VALLEY, WA Debt Capacity 4/1 /2020 2019 Assessed Value for 2020 Property Taxes 10,200,357,539 Voted (UTGO) Nonvoted (LTGO) Voted park Voted utility 1.00% of assessed value 1.50% of assessed value 2.50% of assessed value 2.50% of assessed value Maximum Outstanding Remaining Debt as of Debt ok Capacity 12/31/2018 Capacity Utilized 102,003,575 153,005,363 255,008,938 255,008,938 765,026,814 0 102,003,575 11,715,000 141,290,363 0 255,008,938 0 255,008,938 11,715,000 753,311,814 0.00% 7.66% 0.00% 0.00% 1.53% 2014 LTGO Bonds Road & LTGO Bonds Period Street 2016 LTGO Grand Ending CenterPlace Improvements Total Bonds Total 12/1/2014 Bonds 12/1/2015 Repaid - 12/1/2016 12/1/2017 12/1/2018 12/1/2019 225,000 175,000 185,000 190,000 230,000 255,000 1,260,000 135,000 125,000 130,000 130,000 135,000 140,000 795,000 360,00 300,00 315,000 320,000 365,000 395,000 2,055,000 0 0 75,000 150,000 155,000 160,000 540,000 360,000 300,000 390,000 470,000 520,000 555,000 2,595,000 12/1/2020 290,000 140,000 430,000 165,000 12/1/2021 320,000 145,000 465,000 170,000 12/1/2022 350,000 150,000 500,000 175,000 12/1/2023 390,000 155,000 545,000 180,000 12/1/2024 430,000 0 430,000 185,000 12/1/2025 465,000 0 465,000 195,000 12/1/2026 505,000 0 505,000 900,000 12/1/2027 395,000 0 395,000 '05,000 12/1/2028 300,000 0 300,000 15,000 12/1/2029 245,000 0 245,000 2'0,000 12/1/2030 225,000 0 225,000 2. ,000 Bonds 12/1/2031 180,000 0 180,000 23.,000 Remaining 12/1/2032 130,000 0 130,000 246,000 12/1/2033 165,000 0 165,000 250,000 12/1/2034 0 0 0 260, 1 00 12/1/2035 0 0 0 270,000 12/1/2036 0 0 0 280,0 0 12/1/2037 0 0 0 290,0 0 12/1/2038 0 0 0 305,00 12/1/2039 0 0 0 315,00 12/1/2040 0 0 0 330,000 12/1/2041 0 0 0 340,000 12/1/2042 0 0 0 355,000 12/1/2043 0 0 0 365,000 12/1/2044 0 0 0 375,000 12/1/2045 0 0 0 390,000 595,000 635,000 675,000 725,000 615,000 660,000 705,000 600,000 515,000 465,000 450,000 415,000 370,000 415,000 260,000 270,000 280,000 290,000 305,000 315,000 330,000 340,000 355,000 365,000 375,000 390,000 4,390,000 590,000 4,980,000 6,735,000 11,715,000 5,650,000 1,385,000 7,035,000 7,275,000 14, 310, 000 Page 23 P:\Finance\Finance Activity Reports\Tax Revenue\MVFT\2020\motor vehicle fuel tax collections 2020 CITY OF SPOKANE VALLEY, WA Motor Fuel (Gas) Tax Collections - For the years 2011 through 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 January 154,792 February 146,353 March 141,849 Collected to date 159,607 135,208 144,297 146,145 145,998 135,695 152,906 148,118 131,247 152,598 145,455 140,999 163,918 163,037 145,537 150,654 164,807 138,205 162,359 175,936 139,826 148,530 181,823 131,009 152,686 170,461 146,280 4/28/2020 2019 to 2020 Difference ok 4,156 (11,362) 15,271 2.80% (6.25%) 11.66% 442,994 439,112 427,838 432,271 439,052 472,492 453,666 478,121 461,362 469,427 8,065 1.75% April 165,019 153,546 156,529 156,269 157,994 167,304 168,000 168,796 144,080 0 May 154,700 144,670 151,595 156,850 156,259 171,829 174,211 193,986 185,669 0 June 158,351 159,827 167,479 161,965 164,872 157,737 174,838 144,308 175,985 0 July 165,398 160,565 155,348 157,805 168,205 177,427 177,019 194,267 169,733 0 August 153,361 164,050 173,983 172,308 186,277 177,567 195,780 205,438 195,107 0 September 173,820 171,651 195,397 173,299 174,505 194,640 184,342 180,874 180,605 0 October 158,889 153,022 133,441 160,539 161,520 166,369 163,780 158,062 162,187 0 November 160,461 162,324 164,303 165,871 181,771 176,178 194,814 199,282 196,240 0 December 124,714 138,223 142,140 141,298 153,338 152,787 154,298 148,960 155,728 0 Total Collections 1,857,707 1,846,990 1,868,053 1,878,475 1,943,793 2,014,330 2,040,748 2,072,094 2,026,696 469,427 Budget Estimate 1,875,000 1,905,800 1,868,900 1,866,400 1,867,700 2,013,400 2,048,900 2,061,100 2,039,500 2,055,300 Actual over (under) budg (17,293) (58,810) (847) 12,075 76,093 930 (8,152) 10,994 (12,804) (1,585,873) Total actual collections as a % of total budget % change in annual total collected % of budget collected through March % of actual total collected through March 99.08% 96.91% 99.95% 100.65% 104.07% 100.05% 99.60% 100.53% 99.37% n/a 314.99% (0.58%) 1.14% 0.56% 3.48% 3.63% 1.31% 1.54% (2.19%) n/a 23.63% 23.04% 22.89% 23.16% 23.51% 23.47% 22.14% 23.20% 22.62% 22.84% 23.85% 23.77% 22.90% 23.01% 22.59% 23.46% 22.23% 23.07% 22.76% n/a Chart Reflecting History of Collections through the Month of March 600,000 500,000 400,000 300,000 200,000 100,000 0 1 March ■ March ■ February • J a nu a ry 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Page 24 P:\Finance\Finance Activity Reports\Tax Revenue\Telephone Tax\2020\telephone utility tax collections 2020 CITY OF SPOKANE VALLEY, WA Telephone Utility Tax Collections - March For the years 2011 through 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 January 241,357 193,818 February 230,366 261,074 March 245,539 234,113 Collected to date 217,478 216,552 223,884 210,777 205,953 208,206 177,948 212,845 174,738 182,167 173,971 177,209 162,734 163,300 162,536 130,196 164,060 158,416 136,615 132,538 138,727 123,292 122,448 121,938 5/18/2020 2019 to 2020 Difference (13,323) (9.75%) (10,090) (7.61%) (16,789) (12.10%) 717,262 689,005 657,914 624,936 565,531 533,347 488,570 452,672 407,880 367,678 (40,202) (9.86%) April 238,561 229,565 214,618 206,038 214,431 171,770 157,285 146,519 126,455 0 May 236,985 227,469 129,270 210,010 187,856 174,512 161,506 149,434 135,704 0 June 239,013 234,542 293,668 210,289 187,412 170,450 156,023 150,780 129,602 0 July 244,191 226,118 213,078 205,651 190,984 174,405 157,502 147,281 130,723 0 August 349,669 228,789 211,929 205,645 185,172 171,909 150,644 148,158 127,303 0 September 241,476 227,042 210,602 199,193 183,351 170,476 155,977 141,290 128,018 0 October 237,111 225,735 205,559 183,767 183,739 166,784 153,075 142,925 127,214 0 November 240,246 225,319 212,947 213,454 175,235 166,823 151,208 139,209 125,027 0 December 236,449 221,883 213,097 202,077 183,472 168,832 161,115 140,102 126,226 0 Total Collections 2,980,963 2,735,467 2,562,682 2,461,060 2,257,183 2,069,308 1,892,905 1,758,370 1,564,152 367,678 Budget Estimate 3,000,000 3,000,000 2,900,000 2,750,000 2,565,100 2,340,000 2,000,000 1,900,000 1,600,000 1,521,000 Actual over (under) budg (19,037) (264,533) (337,318) (288,940) (307,917) (270,692) (107,095) (141,630) (35,848) (1,153,322) Total actual collections as a % of total budget 99.37% 91.18% 88.37% 89.49% 88.00% 88.43% 94.65% 92.55% 97.76% n/a % change in annual total collected (0.17%) (8.24%) (6.32%) (3.97%) (8.28%) (8.32%) (8.52%) (7.11%) (11.05%) n/a % of budget collected through March % of actual total collected through March 23.91% 22.97% 22.69% 22.72% 22.05% 22.79% 24.43% 23.82% 25.49% 24.17% 24.06% 25.19% 25.67% 25.39% 25.05% 25.77% 25.81% 25.74% 26.08% n/a Chart Reflecting History of Collections through the Month of March 800,000 ■ 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 March 1 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■ March • February ■ January Page 25 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: June 2, 2020 Check all that apply: ❑ consent ❑ old business ❑ information ❑ admin. report Department Director Approval El ❑ new business ❑ public hearing ❑ pending legislation ® executive session AGENDA ITEM TITLE: EXECUTIVE SESSION: Potential Land Acquisition; Pending Litigation GOVERNING LEGISLATION: RCW 42.30.110(1)(b) and (i) PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: OPTIONS: RECOMMENDED ACTION OR MOTION: I move that Council adjourn into executive session for approximately 30 minutes to discuss potential land acquisition and pending litigation and that no action will be taken upon return to open session. BUDGET/FINANCIAL IMPACTS: STAFF CONTACT: Cary Driskell ATTACHMENTS: