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2020, 10-06 Study Session
AGENDA SPOKANE VALLEY CITY COUNCIL STUDY SESSION FORMAT Meeting Held via ZOOM Tuesday, October 6, 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 the COVID-19 Emergency, which waives and suspends the requirement to hold in -person meetings and provides options for the public to attend remotely, physical public attendance at Spokane Valley Council meetings are suspended until the Governor's order has been rescinded or amended. Therefore, until further notice, a live feed of the meeting will be available on our website and on Comcast channel 14. Public comments will only be accepted for those items noted on the agenda as "public comment opportunity," will be accepted via the following links, and must be received by 4:00 pm the day of the meeting. • Sign up to Provide Oral Public Comment at the Meeting via Calling -In • Submit Written Public Comment Prior to the Meeting • NEW: Join the Zoom WEB Meeting CALL TO ORDER ROLL CALL APPROVAL OF AGENDA PROCLAMATION: Fire Prevention Week ACTION ITEMS: 1. First Reading Ordinance 20-012 Cable Code Amendment — Cary Driskell [public comment opportunity] 2. Motion Consideration: WSDOT/Flora Road Property Acquisition —Cary Driskell, Mike Stone [public comment opportunity] NON -ACTION ITEMS: DISCUSSION LEADER SUBJECT/ACTIVITY GOAL 3. Jenny Nickerson Nonconforming Uses Code Text Discussion/Information Amendment 4. Adam Jackson INFRA Grant Debrief Discussion/Information 5. Adam Jackson Pavement Preservation Surface Discussion/Information Treatment 6. Cary Driskell Cable Franchise TDS Discussion/Information 7. Cary Driskell Federal Lobbyist Contract Discussion/Information 8. Mayor Wick Advance Agenda Discussion/Information 9. Information Only (will not be reported or discussed): Finance Department Monthly Report 10. Mayor Wick Council Comments Discussion/Information 11. Mark Calhoun City Manager Comments Discussion/Information ADJOURN Study Session Agenda, October 6, 2020 S io5kane 1. Va11ey It rociamation (City of'pokane Vattep, Wa5bington ,Fire Jrebention /l eek WHEREAS, Fire Prevention Week was established to commemorate the Great Chicago Fire tragedy of 1871 that killed hundreds of people, left thousands homeless and burned more than 2,000 acres; and in 1911 the National Fire Protection Association sponsored the first National Fire Prevention Day as a means to observe the anniversary and keep the public informed about the importance of fire prevention; and WHEREAS, the City of Spokane Valley is committed to ensuring the safety and security of all those living in and visiting our state as fire is a serious public safety concern locally and nationally, and homes are the locations where people are at greatest risk from fire; and WHEREAS, Home fires killed more than 2,630 people in the United States in 2017, according to the National Fire Protection Association® (NFPA®), and fire departments in the United States responded to 357,000 home fires; and WHEREAS, Fire departments responded to more than 173,200 home fires annually between 2013 and 2017; cooking is the leading cause of home fires in the United States with two of every five home fires starting in the kitchen; and WHEREAS, Working smoke alarms cut the risk in half, of dying in home fires, and residents who have planned and practiced a home fire escape plan are more prepared and will therefore be more likely to survive a fire; and WHEREAS, Spokane Valley Fire Department's first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education; and WHEREAS, The 2020 Fire Prevention Week theme, "Serve Up Fire Safety in the Kitchen" reminds us to stay alert and use caution when cooking. NOW, THEREFORE, I, Ben Wick, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Councilmembers, do hereby proclaim the week of October 4 through 10, as Fire Prevention Week and I urge people to make sure their smoke alarms are in working order, check their kitchens for fire hazards, use safe cooking practices, and to support the efforts of the Spokane Valley Fire Department. Dated this 6"' day of October, 2020. Ben Wick, Mayor CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 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: First reading — Ordinance 20-012 amending chapter 3.65 Spokane Valley Municipal Code — cable television. GOVERNING LEGISLATION: Chapter 3.65 SVMC; Federal Cable Act, 47 U.S.0 5. PREVIOUS COUNCIL ACTION TAKEN: Adoption of chapter 3.65 SVMC in 2009; adoption of a 10- year franchise agreement with Comcast on December 1, 2009 with an effective date of August 6, 2010; administrative report June 16, 2020; September 29, 2020 administrative report. BACKGROUND: The City recently began negotiations with TDS Metrocom, LLC (TDS), a cable television provider that recently entered the market as a competitor to Comcast in Spokane In those discussions, TDS proposed various changes to the franchise format that we sent them, which was strongly based on our Cable Code in chapter 3.65 SVMC. In turn, our Cable Code was taken in large measure from the franchise agreement the City granted to Comcast. In short, and in order to be equitable, any future franchise to a competitor needed to be very consistent with what the Council allowed Comcast to do. Based on internal staff discussions, and discussions with both TDS and Comcast, staff came forward on June 16, 2020 with an administrative report seeking Council consensus to explore a wholesale review and modification of chapter 3.65 SVMC with a goal of reducing our regulatory process and oversight over cable providers in the City. Council agreed with this general approach, and staff engaged in a review and comment process with Comcast and TDS of our existing Code provisions. Following receipt of marked up copies from both entities, staff again reviewed and revised the proposed draft revisions to chapter 3.65 SVMC, which is before you for additional consideration. As a reminder, the City is not proposing any change that would likely impact the amount received from the 5% cable fee (averages roughly $1 million annually). OPTIONS: (1) Advance to a second reading, with or without modifications; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: I move we advance Ordinance 20-012 amending chapter 3.65 SVMC relating to cable television franchises to a second reading. BUDGET/FINANCIAL IMPACTS: Unknown at this time, expected to be minimal. STAFF CONTACT: Morgan Koudelka, Senior Administrative Analyst; John Pietro, Administrative Analyst; Cary Driskell, City Attorney. ATTACHMENTS: Proposed Ordinance 20-012 amending chapter 3.65 SVMC relating to cable television franchises. DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 20-012 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING CHAPTER 3.65 OF THE SPOKANE VALLEY MUNICIPAL CODE RELATING TO OPERATION OF CABLE TELEVISION FRANCHISES IN THE CITY, AND OTHER MATTERS RELATING THERETO. WHEREAS, in 2009, the City Council adopted chapter 3.65 SVMC relating to regulating the issuance and operation of cable television franchises within the City, which was amended in 2017; and WHEREAS, to date, the City has had one cable television provider. Recently, a second cable television provider notified the City of its intent to seek a franchise and begin providing cable service to the City's residents and businesses; and WHEREAS, RCW 35A.47.040 authorizes the City to grant, permit, and regulate "nonexclusive franchises for the use of public streets, bridges or other public ways, structures or places above or below the surface of the ground for railroads and other routes and facilities for public conveyances, for poles, conduits, tunnels, towers and structures, pipes and wires and appurtenances thereof for transmission and distribution of electrical energy, signals and other methods of communication, for gas, steam and liquid fuels, for water, sewer and other private and publicly owned and operated facilities for public service;" and WHEREAS, any providers of electricity, water, sewer, natural gas, petroleum, or petroleum distillates, and/or communication services or facilities in the public rights -of -way are required to obtain a franchise when the City has legal authority to require such a franchise, which may be granted only by the City pursuant to RCW 35A.47.040; and WHEREAS, the City is authorized to and should establish standards for occupancy of the rights - of -way by entities using the rights -of -way, including cable television providers, that are consistent with and recognize the City's jurisdiction and duties to protect the public health, welfare, and safety; and WHEREAS, as part of reviewing chapter 3.65 SVMC, as well as a review of relevant federal law and orders from the Federal Communications Commission, staff recommends amending chapter 3.65 SVMC to change or remove various sections to more closely align the Code with the Council's business - friendly philosophy, and to promote greater competition with the goal of cable customers receiving better service and lower costs. NOW THEREFORE, THE CITY COUNCIL ORDAINS AS SET FORTH BELOW: Section 1: Amending chapter 3.65 Spokane Valley Municipal Code. Chapter 3.65 Spokane Valley Municipal Code is amended as follows: 3.65.010 Definitions. For the purpose of this chapter, the following words and terms shall have the meanings set forth below: Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 1 of 30 DRAFT "Basic cable service" shall mean any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by a franchise agreement to be carried on the basic tier. "Cable Act" means the Cable Communications Policy Act of 1984, as amended by the Cable Television Consumer Protection and Competition Act of 1992, and the Telecommunications Act of 1996, and any amendments thereto. "Cable advisory board" shall mean a City or regional cable advisory board as established by ordinance or interlocal agreement. "Cable service" or "service" shall mean (A) the one-way transmission to subscribers of video programming or other programming service; and (B) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. "Cable system" or "system" shall mean a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term shall not include: 1. A facility that serves only to retransmit the television signals of one or more television broadcast stations; 2. A facility that serves only subscribers without using any public right-of-way; 3. A facility of a common carrier which is subject, in whole or in part, to the provisions of 47 USC 201 et seq., except that such facility shall be considered a cable system (other than for purposes of 47 USC 541(c)) to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on -demand services; 4. An open video system that complies with 47 USC 573; or 5. Any facilities of any electric utility used solely for operating its electric utility system. For the purpose of a franchise, "cable system" shall mean a grantee's cable facilities servicing the City. "Channel" shall mean a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of a television channel, as "television channel" is defined by the FCC. "City" means the City of Spokane Valley, a Washington municipal corporation. "City manager" means the city manager or designee. "Complaint" shall mean a subscriber contact with a grantee to express a grievance or dissatisfaction concerning cable service. Complaints do not include matters not within the scope of a franchise agreement. A complaint may be verbal or in writing, but need not include initial contacts where an issue is promptly resolved to the subscriber's satisfaction. "Construction" or "construct" shall mean digging, excavating, laying, extending, upgrading, removing, andor replacing of a facility. "Facility" or "facilities" means all of the plant, equipment, fixtures, appurtenances, and other related property necessary to furnish and deliver cable television services, including but not limited to wires, Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 2 of 30 DRAFT cables, conductors, ducts, poles, conduits, vaults, manholes, pedestals, amplifiers, appliances, orand attachments, necessary or incidental to the distribution and use of cable television services. "FCC" shall mean the Federal Communications Commission or any legally appointed or designated agent or successor. "Franchise" shall mean the nonexclusive right and authority to construct, maintain, and operate a cable system through use of public rights -of -way in the City pursuant to a contractual agreement approved by the city council, and executed by the City and a grantee. "Franchise area" shall mean the entire geographic area within the City as it is now constituted or may in the future be constituted. "Grantee" shall mean any person or corporation granted a franchise under this chapter. "Gross rcvcnucs" means all rcvcnuc derived directly or indirectly by a grantee, or by a grantee's affiliates, from the operation of a grantee's cable system to provide cable services in the franchise area. Gross revenues include, by way of illustration and not limitation, monthly fees charged subscribers for cable .services including basic service and all other tiers of cable service; pay per view service; cable service installation, disconnection, change in service and reconneetion4e-e-sr 'eased acre change f es late -fees payments received by a grantee from programmers for carriage of cable services on the cable system and recognized as revenue under generally accepted accounting principles ("GAAP"), revenues from rentals of cable system equipment such as converters; advertising rcvcnucs (including local, regional, and a pro rata share of national advertising carried on the cable system in the franchise area) net of commissions due to advertising agencies that arrange for the advertising buy and as recognized as rcvcnuc under GAAP; additional outlet fccs, franchise fccs, and rcvcnucs from home shopping channels. Gross rcvcnucs shall not include (A) bad debt; provided, however, that all or part of any such bad debt that is written off but subsequently collected shall be included in gross revenues in the period collected; (B) any capital contribution referenced in SVMC 3.65.120(H); (C) any payments by the City to a grantee for I Net maintenance or expansion; or (D) any taxes on services furnished by a grantee which are imposed directly on any subscriber or user by the state, City or other governmental unit and which are collected by a grantee on behalf of said governmental unitThe franchise fccs arc not such a tax and arc therefore included in gross revenues. "Gross revenues" means all amounts derived by a grantee and/or an affiliate from the operation of grantee's cable system to provide cable services within the franchise area. Gross revenues include, by way of illustration and not limitation: 1. Fees for cable services, regardless of whether such cable services are provided to residential or commercial subscribers, including revenues derived from the provision of all cable services (including but not limited to pay or premium cable services, digital cable services, pay -per -view, pay - per -event, audio channels or video -on -demand cable services); 2. Installation, disconnection, reconnection, downgrade, upgrade, maintenance, repair, or similar charges associated with subscriber cable service; 3. Fees paid to grantee for channels designated for commercial/leased access use, which shall be allocated on a pro rata basis using total cable service subscribers within the franchise area; 4. Converter, remote control, and other cable service equipment rentals, leases, or sales (but not revenues from equipment used exclusively for the provision of services that are not cable service); 5. Advertising revenues as defined herein; Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 3 of 30 DRAFT 6. Fees including, but not limited to: a. Late fees, convenience fees and administrative fees which shall be allocated in accordance with generally accepted accounting principles ("GAAP"); and b. Franchise fees; 7. Commissions from home --shopping channels and other cable service revenue sharing arrangements which shall be allocated on a pro rata basis using total cable service subscribers within the franchise area. 8. "Advertising revenues" shall mean amounts derived from sales of advertising that are made available to grantee's cable system subscribers within the franchise area and shall be allocated on a pro rata basis using total cable service subscribers reached by the advertising. Additionally, gross revenues subject to franchise fees shall include all commissions, representative fees, affiliated entity fees, and rebates paid associated with sales of advertising on the cable system within the City allocated according to this paragraph using total cable service subscribers reached by the advertising. 9. "Gross revenues" shall not include: a. Actual cable services bad debt write-offs, except any portion which is subsequently collected which shall be allocated on a pro rata basis using cable services revenue as a percentage of total grantee revenues within the franchise area; b. Any taxes and/or fees on services furnished by grantee imposed on subscribers by any municipality, state, or other governmental unit, provided that the franchise fee and the FCC user fee shall not be regarded as such a tax or fee; c. Public, Educational and Governmental (PEG) fees collected by grantee from subscribers; d. Contra expenses including but not limited to launch fees and marketing co-op fees to the extent consistent with GAAP; or e. Unaffiliated third -party advertising sales agency fees or commissions which are reflected as a deduction from revenues to the extent consistent with GAAP. 10. To the extent revenues are derived by grantee for the provision of a discounted bundle of services which includes cable services and non -cable services, grantee shall calculate revenues to be included in gross revenues using a methodology that allocates revenue on a pro rata basis when comparing the bundled service price and its components to the sum of the published rate card prices for such components. Except as required by specific federal, state, or local law, equipment shall be subject to inclusion in the bundled price at full -rate card value. This calculation shall be applied to every bundled service package containing cable service from which franchisee derives revenues in the franchise area. The City reserves its right to review and to challenge grantee's calculations. 11. Grantee may change the allocation methodologies set forth in this definition of gross revenue to meet standards mandated by the Financial Accounting Standards Board ("FASB"), Emerging Issues Task Force ("EITF") and/or the U.S. Securities and Exchange Commission ("SEC"). City acknowledges and agrees that grantee shall calculate gross revenues in a manner consistent with GAAP where applicable; however, the City reserves its right to challenge grantee's calculation of gross revenues, including grantee's interpretation of GAAP and grantee's interpretation of FASB, EITF, and SEC directives. Grantee agrees to explain and document the source of any change it deems required by FASB, EITF, and SEC on the first quarterly payment statement implementing the Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 4 of 30 DRAFT change. Upon the City's written request, grantee shall provide additional detail, explanation, and/or reference to source materials. 12. The City acknowledges that grantee shall maintain its books and records in accordance with GAAP. "Lockout device" shall mean an optional mechanical or electrical accessory to a subscriber's terminal which inhibits the viewing of a certain program, certain channel, or certain channels provided by way of the cable system. "Maintenance" or "maintain" shall mean repair, restoration, replacement, renovation, or testing of the cable system or components thereof so as to ensure that it operates in a safe and reliable manner and as required by this chapter. "Noncommercial" shall mean, in the context of PEG channels, that products and services are not sold via the PEG channel. The term will not be interpreted to prohibit a PEG channel operator or programmer from independently (i.e., not in the context of any televised programming) soliciting and receiving financial support to produce and transmit video programming on a PEG channel, or from acknowledging a contribution, in the manner of the corporation for public broadcasting. A PEG channel operator or programmer may cablecast informational programming regarding City events, projects and attractions of interest to residents so long as the format for such programming is consistent with the purposes for which PEG resources may be used"Normal business hours" shall mean those hours during which most similar businesses in the City are open to serve customers. In all cases, "normal business hours" must include some evening hours, at least one night per week and/or some weekend hours. "Normal operating conditions" shall mean those service conditions which arc within the control of grantee. Those conditions which are not within the control of a grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe weather conditions. Those conditions which are ordinarily within the control of a grantee include, but are not limited to, special promotions, pay per view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the cable system. "PEG" shall mean any channel set aside for public use, educational use, or governmental use without a channel usage charge. "Person" shall mean an individual or legal entity, such as a corporation or partnership. "Premium service" shall mean pay television offered on a per channel or per program basis. "Public property" shall mean any real estate or any facility owned by the City. "Right-of-way" shall mean all property, and the space above and below, in which the City has any form of ownership, title, or interest, including easements and adjacent utility strips, which is held for public roadway or dedicated for compatible utility purposes, regardless of whether or not any roadway or utility exists thereon or whether it is used, improved, or maintained for public use. "Service interruption" shall mean the loss of picture or sound on one or more cable channels. "Service tier" shall mean a specific set of cable services which arc made available as, and only as, a group for purchase by subscribers at a separate rate for the group. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 5 of 30 DRAFT "Standard installation" shall mean those that are located up to 125 feet from the existing distribution system. Grantee shall comply with applicable FCC regulations regarding commercial installations as may now or hereafter arise. "Subscriber" shall mean any person who lawfully receives cable service via the system. "Video programming" shall mean programming provided by, or generally considered comparable to programming provided by, a television broadcast station. 3.65.020 General provisions. A. It is unlawful to engage in or commence construction, operation, or maintenance of a cable communications system without a franchise issued under this chapter, except as may be otherwise provided by state or federal law. The council may, by ordinance, award a nonexclusive franchise to construct, operate, and maintain a cable communications system within all or any portion of the City to any person, whether operating under an existing franchise or not, who makes application for authority to furnish a cable communications system which complies with the terms and conditions of this chapter; provided, that this section shall not be deemed to require the grant of a franchise to any particular person or to prohibit the council from restricting the number of franchisees should it determine such a restriction would be in the public interest. Any franchise for the construction, maintenance, and operation of cable television systems using the public streets, utility easements, other public rights -of -way, or places shall conform generally to the provisions of this chapter, except as may be otherwise set forth in the ordinance granting such franchise. B. The provisions of this chapter may be incorporated by specific reference in any franchise agreement approved under this chapter. However, in the event of any conflict or ambiguity arising between the pfei4Siei+S-ef-an-y-fra{+ehi-se-agFeeR+eFrt--an441+e-se of this chapter, the provisions of the franchise agreement shall prevail. 3.65.030 Nonexclusivity. The grant of authority for use of the City's rights -of -way under tchapter 3.65 SVMC is not exclusive and does not establish priority for use over other franchise holders, permit holders, and the City's own use of public property. Nothing in any franchise agreement made under this chapter shall affect the right of the City to grant to any other person a similar franchise or right to occupy and use the rights -of -way or any part thereof. 3.65.035 Cable franchise application. Any cable television entity seeking to provide cable television service in the City pursuant to a franchise shall initiate that process by submitting a complete application to the city clerk. The application must be completed, and any application that is deemed incomplete by the City shall be returned to the applicant. This requirement only applies to any new entrant not currently in the process of negotiating a cable franchise with the City as of June, 2020. 3.65.040 Franchise issuance. Prior to the granting of a franchise, the city council shall conduct a public hearing to determine the following: A. Initial Franchise. 1. That the public will be benefited by the granting of a franchise to the applicant; 2. That the applicant has the requisite financial and technical resources and capabilities to build, operate and maintain a cable television system in the arca; Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 6 of 30 DRAFT 3. That the applicant has no conflicting interests, either financial or commercial, which will be contrary to the interests of the City; 1. That the applicant will comply with all terms and conditions placed upon a franchisee by this chapter; 5. That the applicant is capable of complying with all relevant federal, state, and local regulations pertaining to the construction, operation and maintenance of the cable facilities and systems incorporated in its application for a franchise;62. That the public rights -of -way have the capacity to accommodate the cable communications system; 7. That the applicant is capable of meeting buildout threshold requirements as specified in SVMC 3.65.090; 43. That the proposed franchise is consistent with the City's present and future use of the public rights -of -way to be used by the cable communications system; 91. That the benefit to the public from the cable communications system outweighs the potential disruption to existing users of the public rights -of -way to be used by the cable communications system and the resultant inconvenience which may occur to the public; and 544. That all other conditions resulting from the grant of the franchise have been considered by the City and that the City determines that the grant is still in the public's best interest. B. Renewal Franchise. When considering whether to renew a franchise with an existing cable provider, the City shall consider the following: 1. DidT-liat the applicant has complyied with the terms and conditions of the existing franchise; 2. If not, what were the terms and conditions the applicant failed to comply with, to what extent, and with what frequency; 3�. That the quality of the applicant's previous service has been reasonable in light of community needs; 44. That the applicant's proposal is reasonable to meet the future cable -related community needs and interests, taking into account the cost of meeting such needs and interests; and 45. That all other conditions resulting from the grant of the franchise have been considered by the City and that the City determines that the grant is still in the public's best interest. 3.65.050 Fee. A. In all franchises made under this chapter, the grantee shall pay to the City five percent of its annual gross revenues in the City, pursuant to 47 USC 542, throughout the full term of the franchise agreement. Payment shall be due no later than 30 days from the end of each calendar quarter, after which interest shall accrue at the rate of one percent per month. In the event all or a portion of the franchise fee has not been paid within 60 days of the end of each calendar quarter, a penalty in the amount of 10 percent of the delinquent amount shall be added to the outstanding amount. All franchise fees, interest, and penalties shall constitute a debt owed toef the City and may be collected by any means allowed under the law. B. No acceptance by the City of any payment from grantee shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 7 of 30 DRAFT of any claim the City may have for further or additional sums payable under the provisions of the franchise agreement. All amounts paid shall be subject to auditing and recomputation by the City. C. Grantee acknowledges and agrees that the franchise fees payable by grantee to City pursuant to a franchise agreement, as well as capital support provided by grantee for PEG equipment and facilities, are authorized under the Federal Cable Act and shall not be deemed to be in the nature of a federal, state, or local tax. D. Franchise Fees Subject to Audit. Upon reasonable prior written notice,noticc, during normal business hours, at the grantee's principal business officeat the City shall have the right to inspect within 30 days the grantee's financial records used to calculate the City's franchise fees at a mutually agreed upon date, time, and location. If the City and grantee cannot agree on a date, time, and location within 30 days, grantee shall make the requested records available to the City at Spokane Valley City Hall on a date and time determined by the City. The City shall provide to the grantee a final report setting forth the City's findings in detail, including any and all substantiating documentation. In the event of an alleged underpayment, the grantee shall have 30 days from the receipt of the report to provide the City with a written response agreeing to or refuting the results of the audit, including any substantiating documentation. Grantee shall review and the City shall be entitled to review grantee's historical financial records used to calculate the City's franchise fees consistent with the currently applicable state statute of limitations. DE. At any time after athia franchise agreement is approved, the grantee may, pursuant to applicable federal law or FCC order, determine that certain in -kind cable related contributions may be taken as an offset to the franchise fee. The grantee shall notify the City of the change within the quarter that the offset will be taken or the accounting change has been made. This will allow the City to anticipate and account for the budgetary impact, and to allow the City to consider mitigating action such as reducing or eliminating those in -kind items that may be taken as an offset against the City's franchise fees. EF. Failure to comply with this section, except alleged underpayments under subsection D of this section, shall constitute a material breach of the franchise agreement pursuant to SVMC 3.65.320. 3.65.060 Competitive equity. A. The City reserves the right to grant more than one cable system franchise. The City shall amend a franchise, as requested by the grantee, if it grants additional cable service franchises or similar multiple channels of video programming authorizations that contain material terms or conditions which are substantially more favorable or less burdensome to the competitive entity than the material terms and conditions contained in a previously granted franchise. A word-for-word identical franchise or authorization for a competitive entity is not required so long as the regulatory and financial burdens on each entity are generally equivalent, taking into account any difference in the number of subscribers served, the number of PEG channels and aggregate support provided, the level of fees and taxes imposed, the term of the franchise, and all other circumstances affecting the relative burdens. B. Notwithstanding any provision to the contrary, at any time prior to the commencement of a grantee's 36-month renewal window, provided by Section 626 of the Cable Act, that a non -wireless facilities -based entity, legally authorized by state or federal law, makes available for purchase by subscribers or customers cable services or multiple channels of video programming within the franchise area without a franchise or other similar lawful authorization granted by the City, then a grantee shall have a right to request franchise amendments that relieve the grantee of regulatory burdens that create a competitive disadvantage to the franchisee. In requesting amendments, the grantee shall file a petition seeking to amend the franchise. Such petition shall: (1) indicate the presence of such wireline competitor; and (2) identify all material terms or conditions which are substantially more favorable or less burdensome to the competitive entity. The City shall act on the petition within 120 days. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 8 of 30 DRAFT C. In the event an application for a new cable television franchise is filed with the City proposing to serve the franchise area, in whole or in part, the City shall notify the grantee within 20 days of receipt of the application. 3.65.070 Taxes. As is consistent with applicable law, nNothing contained in any franchise agreement granted under thispursuant to chapter 3.65 SVMC shall be construed to except the grantee from any applicable tax, liability, or assessment authorized by law. 3.65.080 Cable system specifications. A. Prior to entering into a franchise agreement, and during the term of the franchise agreement, the the node system architecture, with fiber optic cable deployed from the headend to the node and coaxial minimum of 750 MHz and capable of delivering high quality analog or digital video signals meeting or exceeding FCC technical quality standards. Cable system nodes designed for future segmentation as necessary to maximize shared bandwidth. BA. A grantee shall comply with all applicable technical standards of the FCC as adopted or amended. - published in subpart K of 17 CFR 76. To the extent those standards are altered, modified, or amended during the term of the franchise agreement, the grantee shall comply with such altered, modified, or amended standards within a reasonable period after such standards become effective. The City shall have, upon written request, the right to review tests and records required to be performed pursuant to the FCC's rules. CB. In accordance with applicable law, tThe City shall have the right to regulate and inspect the construction, operation, and maintenance of the cable system in the public rights -of -way. Upon reasonable prior written notice and in the presence of the grantee's employee, the City may review the provisions of the franchise agreement. All equipment testing under a technical performance review shall be conducted by the grantee. 3.65.090 Cable service. A. Cable service offered to subscribers pursuant to a franchise shall be conditioned upon a grantee having legal access to any such subscriber's dwelling unit or other units where such cable service is provided. B. Areas subsequently annexed by the City shall be provided with cable service pursuant to any franchise, including under the same terms. C. Grantees shall comply with any applicable federal regulations relating to providing services to areas irrespective of income, commonly known as "anti -redlining" provisions. D. Failure to comply with these buildout requirements may result in revocation of the franchise by the city council. A. Subject to the density considerations listed below, except in areas reserved for public travel or utility access not yet opened and accepted by the City as public right of way that the grantee is specifically and lawfully prohibited from deploying its cable system by the owner/developer, the grantee shall provide cable service as follows: 1. A new entrant grantee shall commence construction within 120 days of the granting of a franchise. The city council may grant an extension thereof for good cause shown; provided, however, that formal application for such an extension must be filed by the grantee within the 120 day period. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 9 of 30 DRAFT 2. A new entrant grantee shall begin providing service to subscribers within 2110 days of the granting of a franchise. 3. A new entrant grantee shall have completed buildout within all areas of the city within 36 months of the granting of a franchise. The city council may grant an extension thereof for good cause shown; provided, however, that formal application for such an extension must be filed by the grantee within the 36 month period, and the maximum extension allowable is up to six additional months. I. Areas subsequently annexed shall be provided with cable service within 12 months of the time of annexation. 5. Failure to comply with these buildout requirements shall result in revocation of the franchise by the city council. B. Access to cable service shall not be denied to any group of potential cable subscribers because of the income of the potential cable subscribers or the area in which such group resides. All residents requesting cable service and living within a standard installation of 125 feet shall have the cable installed at no more than the prevailing published installation rate. In the event a request is made for cable service and the and material cost basis for that portion of the service line extending beyond 125 feet. C. Upon request through the designated City representative, the grantee shall provide, without charge and throughout the term of the franchise agreement, one outlet, one converter, if necessary, and basic cable service and expanded basic cable service (i.e., together the equivalent of 60 channels of programming) or the future analog or digital equivalent of such service tiers offered by grantcc to the City's administrative public and private school(s). 1. If the drop line to such building exceeds a standard installation drop of 125 feet, the grantcc will accommodate the drop up to 300 feet if the City or other agency provides the necessary attachment point for aerial service or conduit pathway for underground service. If the necessary pathway is not provided, the City or other agency agrees to pay the incremental cost of such drop in excess of 125 feet or the necessary distribution line extension of the cable system, including the cost of such excess labor and materials. The recipient of the service will secure any necessary right of entry. 2. The cable service will not be used for commercial purposes, and the outlets will not be located in areas open to the public, excepting one outlet to be located in a public lobby of any government building that will be used by the public for viewing public, governmental, or educational access channels. The City will take reasonable precautions to prevent any use of the grantee's cable system in any manner that results in inappropriate use, loss or damage to the cable system. Grantee hereby reserves all rights it may have under the law to seek payment from City for liability or claims arising out of the provision and use of the cable service required by this section. 3. If additional outlets of cable service are provided to such buildings, the building occupant will pay the usual installation fees, if any. D. Grantee shall extend the system to any portion of the City, after the date of the franchise agreement, when dwellings c density of sev er d e cgs per one quarter mile of cable contiguous t^ th-e s to . Grantee f „etition the City for ^ of this r u* cn r t^ 13e granted for good cause shown. Such extension shall be at grantee's cost. In areas not meeting the requirements of seven or more dwellings per one quarter mile for mandatory extension of service, grantcc shall provide, upon the Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 10 of 30 DRAFT request of any potential subscribers desiring service, an estimate of the costs required to extend service to such subscribers. Grantee shall then extend service upon request and upon payment of an amount equal to the reasonable value of actual time and materials to be incurred by grantee for such extension. Any customer drop not exceeding a standard installation drop of 125 feet will be free of charge to the customer other than normal installation fees. For drops in excess of 125 feet, grantee may assess an amount equal to time and materials. 3.65.100 Programming. A. All final programming decisions remain the discretion of grantee in accordance with a franchise agreement made under this chapter; provided, that grantcc notifies City and subscribers in writing 30 days prior to any channel additions, deletions, or realignments, and further subject to grantee's signal carriage obligations hereunder and pursuant to /7 USC 531 through 536, and further subject to City's rights pursuant to '17 USC 5/ 5. B. A grantee shall provide at least the following initial broad categories of programming to the extent such categories arc reasonably available: 1. Educational programming; 2. News, weather and information; 3. Sports; /I . General entertainment including movies; 5. Children, family oriented; 6. Arts, culture and performing arts; 7. Foreign language programming; and 8. Science/documentary. C. A grantee shall offer to all subscribers a diversity of video programming services and it will not eliminate any broad categories of programming without first obtaining the written approval of the City, such approval not to be unreasonably withheld. D. A grantcc shall notify in writing the City of its intent to eliminate any broad category of programming noted in subsection B of this section. The City, or its designee, shall make a determination on such request not later than 60 days after receipt of the request by grantee. In the event that the City makes an adverse determination, such determination shall be in writing, along with a concise statement of the reasons therefor. In the event the City fails to make a determination within 60 days after receipt of a request from grantcc, grantcc shall have the right to make the deletion contained in its written request. 3.65.110 Ratcs. A. Throughout the term of any franchise agreement made under this chapter and upon request by the City, services provided under the franchise agreement. This does not require the grantcc to file rates and charges under temporary reductions or waivers of rates and charges in conjunction with promotional B. A grantcc shall provide a minimum of 30 days' written notice to the City and each subscriber before changing any rates and charges. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 11 of 30 DRAFT C. City may regulate rates for the provision of cable service provided over the system in accordance with applicable federal law, in particular 17 CFR Part 76, subpart N. In the event the City chooses to regulate rates, it shall, in accordance with 17 CFR 76.910, obtain certification from the FCC, if applicable. The City shall follow all applicable FCC rate regulations and shall ensure that appropriate personnel are in place to administer such regulations. City reserves the right to regulate rates for any future cable services to the maximum extent allowed by law. 3.65.1002-0 PEG and local programming. A. Any grantee shall make available one full time noncommercial multi jurisdictional PEG channel (the "government channel") for future activation and joint use by the City, the city of Spokane and/or Spokane County for governmental access programming The City shall provide grantee with a minimum of 15 days' prier wEitten notice o f ar in t:a, mooti„,. to develop , rleme tation plan for activ ation o fthe government channel. Commencing on the effective date of a franchise granted under this chapter, and throughout the term of the franchise, grantee shall deliver those PEG channels with whom the City has contracted for service, up to a maximum of twosix channels, including one channel for public access, with the second channel reserved for future City use at the City's election as a government channel. Grantee shall continue to deliver thethoso PEG channel(s) so long as the City's contracts are valid and the PEG channel(s) have content to distribute. The City shall provide copies of all PEG channel contracts, and contract renewals, to grantee within 30 days of execution. BC. The grantee may, at grantee's option,will endeavor to provide the subscribers in the franchise area with the other regional PEG channels so long as the PEG programmers offer them for use on the cable .system. D. All PEG channels provided to subscribers under a franchise made pursuant to this chapter shall be included by grantee subject to applicable law. For all PEG channels not under grantee's control, grantee shall ensure that there is no material degradation in the signal that is received by grantee for distribution by grantee over the cable system. C. The City shall be responsible for all programming requirements for the PEGgovernment channels, including but not limited to scheduling, playback, training, staffing, copyright clearances, and equipment, maintenance and repair, unless responsibility for administering the PEGgovernment channels has been designated to a third party, which shall then become responsible for all programming requirements under this section. D. At any time during the term of a franchise, the City may elect to undertake responsibility to program the government access channel. To do so, the City shall provide grantee written notice of its intent to program the government access channel. Upon receipt of the written notice, the City and grantee shall meet to discuss and mutually agree upon an implementation plan to activate said channel. Nothing in chapter 3.65 SVMC prevents the City from collaborating with another neighboring community or communities serviced by the grantee, to facilitate the City's needs for government access programming. EE. The grantee shall includeprovidc the PEG channel(s) as part of the cable service otherwise provided to any subscriber, at no additional charge. If channels are selected through a menu system, the PEG channel(s) shall be displayed as prominently as commercial programming choices offered by grantee. A grantee will use reasonable efforts to minimize the movement of City -designated PEG channel assignments and maintain common channel assignments for compatible PEG programming With respect to signal quality, a grantee's distribution of PEG channels shall not materially degrade those channels. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 12 of 30 DRAFT QF. At such time as a grantee converts its basic cable service tier from an analog to a digital format, tThe City's PEG channel(s) shallwill be carried on the digital platform and grantee shall install, at its sole cost, such headend equipment to accommodate such channel(s). Such PEG channel(s) shall be accessed by subscribers through use of standard digital equipment compatible with grantee's cable system. G. The City may cancel use of the PEG channel(s) by giving a grantee at least 45 days' advance notice of such action, after which cancellation of use of the PEG channel(s) shall be deemed complete, unless a longer timeframe is identified in the notice of cancellation. H. Grantee will remit to the City as a capital contribution in support of PEG capital requirements an amount equal to $0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. In the event notice of cancellation of the PEG channel usage pursuant to 3.65.100(H), grantee shall also cease collecting this PEG capital fee effective on the same date. I. The City shall allocate all amounts under this subsection to PEG capital uses exclusively. Grantee shall not be responsible for paying the PEG capital contribution with respect to gratis or bad debt accounts. Pursuant toConsistent with 47 CFR 76.922, grantee may, in its sole discretion, add the cost of the PEG capital contribution to the price of cable services and collect the PEG capital contribution from subscribers. In addition, consistent withPursuant to 47 CFR 76.985, all amounts paid as the PEG capital contribution may be separately stated on subscribers' bills as a City of Spokane Valley PEG capital contribution. Upon grantee's written request and due as agreed upon by both parties, the City shall provide the grantee with documentation showing expenditures for PEG capital use of the previous fiscal years' PEG capital contribution and showing the budgeted use of the current year's PEG funding. In the event the City cannot demonstrate that PEG capital funding was used or budgeted for PEG capital needs, grantee's PEG funding obligations going forward shall be reduced by an equivalent amount. J. No more than once per year, the City may provide notice of its intent to either reduce the monthly PEG rate or increase the rate. In no case shall the PEG rate exceed $0.35 per subscriber per month. The grantee shall implement the change within 60 days of notification from the City. K. If the City provides notice to the grantee concerning its election to program the government access channel, the City shall designate its proposed government access facility location. Within 120 days of receiving notice, the grantee shall review its facilities and records and provide an estimate of costs associated with the construction and activation of a fiber optic return line capable of transmitting video programming to enable the distribution of the City's government access programming to subscribers on the provided government access channel. The return line shall run from a location to be determined by the City to the grantee's facilities. Within a reasonable time -period of receiving the City's directive, the grantee shall construct and activate a return line in accordance with the cost estimate previously provided. The City agrees to pay the actual costs of the return line within 90 days of construction/activation and receipt of an invoice from the grantee. After completion, grantee shall maintain the return line; as permitted by federal law, invoicing the City for any actual repair or maintenance costs. Such actual or estimated repair or maintenance costs shall be provided to the City in advance when possible, and shall be documented and invoiced to the City by grantee for payment. I. Within 90 days of request, the grantee shall provide an estimate of costs associated with the construction and activation of one return path capable of transmitting video programming to enable the distribution of the City's specific government access programming to subscribers on the multi jurisdictional PEG channel. The return line shall run from a location to be determined by the City to the return line in accordance with the cost estimate previously provided. The City agrees to pay the costs of the return line within 60 days of construction/activation and receipt of an invoice from the grantee. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 13 of 30 DRAFT 3.5.130 Institiutiona1 nctwo ifconncctions. Upon request of the City, a grantee shall investigate and provide the City a plan with a cost estimate based on either a managed network or the most cost efficient connection utilizing current technology to accommodate the City's reasonable broadband capacity needs for a noncommercial connection between the City's facilities. For the purposes of this section, "noncommercial" means private network communications from and among the City and other public agencies and excludes leasing or reselling the broadband capacity to a third party for any purpose. After receiving a request from the City, grantee shall provide the City a plan, including an estimate of the constructienco within °n e a« e co o ur shall include the fully allocated construction cost from the nearest grantee identified fiber access location to the requested sitc(s), including, but not limited to, site construction, fiber, labor, materials and grantee provided equipment. The City shall pay all of grantee's design engineering costs associated with development of the requested plan and cost estimatc(s), if the City does not accept the plan for construction. To approve the grantee to perform the work, the City shall provide the grantee with written authorization to complete the connectivity construction and a purchase order in the amount of the cost estimate. Any connectivity construction shall be performed and completed within six months after the City authorizes the work to be performed, unless the parties agree in writing to a different completion date prior to commencement of the work in order to accommodate special considerations of the City. 3.57140—metal eei l. A. A grantee shall provide subscriber controlled lockout devices (audio and visual) at a reasonable charge to subscribers upon their request. B. As to any program which is transmitted on a channel offered on a per channel or per program basis, grantee shall block entirely the audio and video portion of such program from reception by any subscriber who so requests. Scrambling of the signal shall not be sufficient to comply with this provision. 3.65.11050 Recovery of costs. A grantee shall reimburse the City for all costs of one publication of an ordinance authorizing a franchise made under this chapter in a local newspaper, and required legal notices prior to any public hearing regarding the franchise, contemporaneous with its acceptance of the franchise. 3.65.12060 Least interference. The City shall have prior and superior right to the use of its rights -of -way for installation and maintenance of its facilities and other governmental purposes. Work by grantee in the rights -of -way shall be done in a manner that causes the least interference with the rights and reasonable convenience of property owners and residents. The owners of all facilities, public or private, installed in or on such public properties prior to the installation of the facilities of the grantee, shall have preference as to the positioning and location of such utilities with respect to the grantee. Such preference shall continue in the event of the necessity of relocating or changing the grade of any such right-of-way. Disputes between the grantee and other parties over the use, pursuant to a franchise agreement, of the rights -of -way shall be submitted to the City for recommended resolution. No franchise under this chapter shall, in any way, prevent or prohibit the City from using any of its rights - of -way, or affect its jurisdiction over them or any part of them. The City hereby retains its full police power to make all changes, relocations, repairs, maintenance, establishments, improvements, dedications, or vacation of same, including the dedication, establishment, maintenance, and improvement of all new rights -of -way. 3.65.130;0 Construction standards. All work authorized and required hereunder shall comply with all generally applicable City codes and regulations. Grantee shall also comply with all applicable federal and state regulations, laws, and Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 14 of 30 DRAFT practices. Grantee is responsible for the supervision, condition, and quality of the work done, whether it is by itself or by contractors, assigns, or agencies. 3.65.140S0 Restoration after construction. If in connection with the construction, operation, maintenance, upgrade, repair, or replacement of the cable system a grantee disturbs, alters, or damages any public or private property, the grantee agrees that it shall at its own cost and expense pay for any damage and replace and restore any such property to a condition at least reasonably comparable to the condition existing immediately prior to the disturbance. Whenever grantee disturbs or damages any right-of-way or other public property, grantee shall complete the restoration work within a reasonable time as authorized by the city manager or designee. 3.65.15010 Obstruction permits required. Grantee shall apply for and obtain appropriate obstruction permits from the City pursuant to the Spokane Valley Municipal Code. Grantee shall pay all generally applicable permit fees for the requisite City permits and reimburse the City for all generally applicable fees incurred by the City in the examination, inspection, and approval of grantee's work. 3.65.160380 Emergency response. The grantee shall maintain with the City an emergency response number providing an emergency 24-hour response for the City to use in case of an emergency. After being notified of an emergency, grantee shall cooperate with the City and make every effort to immediately respond with action to aid the protection of the health and safety of the public. 3.65.170244 Hazardous substances. Grantee shall comply with all applicable state and federal laws concerning hazardous substances relating to grantee's facilities in the rights -of -way. 3.65.180230 Environmental. Grantee shall comply with all applicable state and federal laws concerning environmental protection relating to grantee's facilities in the rights -of -way. 3.65.190234 Movement and relocation of facilities. A. Relocation of Facilities at the Request of a Third Party. 1. If any removal, replacement, modification, or disconnection of the cable system is required to accommodate the construction, operation, or repair of the facilities or equipment of another City cable franchise holder(s), grantee shall, after at least 30 days' advance written notice, take action to effect the necessary changes requested by the responsible entity, as long as the other franchise holder(s) pays for the grantee's time and material costs associated with the project and grantee is issued a permit for such work by the City. 2. The grantee shall, upon reasonable prior written request of any subscriber, relocate its aerial distribution cable facilities underground, as long as the subscriber pays for the grantee's time and material costs associated with the project and grantee is issued a permit for such work by the City. 3. In the event an underground conversion of cable facilities is required as part of the street improvement condition(s) of a new land use development, not associated with a City -designated capital improvement project, a franchise shall in no way limit the grantee's right to bill and collect in advance all time and material costs associated with the underground conversion of the cable system from the person responsible for the land use development project. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 15 of 30 DRAFT 4. At the request of any person holding a valid permit and upon reasonable advance notice and payment by the permit holder of grantee's expenses of such temporary change, grantee shall temporarily raise, lower, or remove its facilities as necessary to accommodate a permittee of the City. B. Relocation at Request of the City. 1. Upon at least 60 days' prior written notice to grantee, the City shall have the right to require grantee to relocate any part of the cable system within the rights -of -way when the safety, health, or welfare of the public requires such change, and the expense thereof shall be paid by grantee. The City may, at its option, provide more than 60 days' notice. After receipt of such notice, grantee shall complete relocation of its facilities at least five days prior to commencement of the project or an agreed upon date by both parties. Should grantee fail to remove or relocate any such facilities by the date established by the City, the City may effect such removal or relocation, and the expense thereof shall be paid by grantee, including all costs and expenses incurred by the City due to grantee's delay, including delay damages established by third parties. If the City requires grantee to relocate its facilities located within the rights -of -way, the City shall make a reasonable effort to provide grantee with an alternate location within the rights -of -way. If public funds are available to any person using such rights -of -way for the purpose of defraying the cost of any of the foregoing, the grantee may make application for such funds. 2. In the case of relocation projects where the conversion of overhead utilities is within a City capital improvement project, then the grantee shall participate in the joint trenching portion of the project, and grantee shall pay to the City grantee's portion of the traffic control and trench costs, including excavation and other associated costs, trench bedding, and backfill commensurate with grantee's proportionate share of trench usage. However, if bids from the City or its designated contractor for placement of grantee's conduits and vaults/pedestals in the supplied joint trench, in the reasonable estimation of the grantee, are not acceptable, the grantee shall have the option to utilize contractor(s) of its choice to complete the required work, so long as use by grantee of its contractor(s) does not delay the City project. The City or its designated contractor shall coordinate with the grantee's contractor(s) to provide reasonable notice and time to complete the placement of the grantee's facilities in the supplied joint trench. 3. Nothing in a franchise made under this chapter shall prevent the City from constructing any public work or capital improvement. Further, the City shall have the right to require grantee to relocate, remove, replace, modify, or disconnect grantee's facilities and equipment located in the rights -of - way or on any other property of the City in the event of an emergency or when necessary to protect or further the health, safety, or welfare of the general public, and such work shall be performed at grantee's expense. Following notice by the City, grantee shall relocate, remove, replace, modify, or disconnect any of its facilities or equipment within any right-of-way, or on any other property of the City. 4. If the grantee fails to complete the above work within the time prescribed by the City, given the nature and extent of the work, or if it is not done to the City's reasonable satisfaction, the City may cause such work to be done and bill the reasonable cost of the work to the grantee, including all reasonable costs and expenses incurred by the City due to grantee's delay. In such event, the City shall not be liable for any damage to any portion of grantee's cable system. Grantee shall pay the City within 90 days of receipt of an itemized list of those costs. The City shall give consideration to any circumstances outside the grantee's control preventing grantee's completion of work. 3.65.20040 Tree trimming. A grantee shall have the authority to conduct pruning and trimming for access to cable system facilities in the rights -of -way subject to compliance with applicable City code relating to the same as adopted or Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 16 of 30 DRAFT amended. All such trimming shall be done at the grantee's sole cost and expense. The grantee shall be responsible for any damage caused by such trimming. 3.65.21050 Vacation. The City may vacate any City road, right-of-way, or other City property which is subject to rights granted by a franchise pursuant to under -this -chapter 3.65 SVMC, but the grantee shall be provided notice of such vacation proceedings and the opportunity to secure future use rights as allowed under the Spokane Valley Municipal Code. 3.65.22060 Abandonment of grantee's facilities. No facility constructed or owned by a grantee may be abandoned without the express prior written consent of the City. 3.65.23070 Maps, books, and records. A. Upon at least 30 days' written request, a Ggrantee shall provide to the City uponrequest: 1. Aa route map that depicts the general location of the cable system facilities placed in the rights -of way. In the event of an emergency requiring such information, tThe City may request, and a franchisee shall provide, a route map on shorter notice in the event of an emergency requiring such information. The route map shall identify cable system facilities as aerial or underground and is not required to depict cable types, number of cables, electronic equipment, and service lines to individual subscribers. The grantee shall also provide, if requested, an electronic format of the aerial/underground facilities in relation to the right-of-way centerline reference to allow the City to add this information to the City's GIS program.; and 2. A copy of all FCC filings which relate to the operation of the cable system in the franchise area. B. To the extent such requests are limited to specific facilities at a given location within the franchise area in connection with the construction of any City project, grantee shall cooperate with the City, upon the City's reasonable request, to field -locate its facilities in order to facilitate design and planning of City improvement projects. C. The City has the right to inspect books and records of grantee, which are reasonably necessary to monitor a grantee's compliance with the provision of cable services. Within 30 business days of receipt of written notice from the City to inspect a grantee's books and records under this section, the grantee and City shall, within five business days or determine a mutually agreeable date, and time, and location to accommodate the City's request at the grantee's business offic and without unreasonably interfering with the grantee's business operations. If the City and grantee cannot agree on a date, time, and location within 30 days, grantee shall make the requested records available to the City at Spokane Valley City Hall on a date and time determined by the City. All such documents pertaining to financial matters shall be p ed and m „taired ordaree T tl n ntee's .standard record retention policy except for financial records which arc governed by SVMC 3.65.050(D). D. The City has the right to request a copy of the books and records that are not identified as proprietary or confidential. For purposes of this section, the term "proprietary or confidential" includes, but is not limited to, information relating to the cable system design, customer lists, marketing plans, financial information unrelated to the calculation of franchise fees or rates pursuant to FCC rules, or other information that is reasonably determined by the grantee to be competitively sensitive. 1. The City shall have a right to inspect but the grantee shall not be required to release information that it -grantee reasonably deems to be proprietary or confidential in nature; provided, that this shall not prevent the release of such proprietary or confidential documents for purposes of any enforcement proceeding where appropriate legal steps are available to address grantee's concerns regarding confidentiality. In the event the grantee asserts that certain information is proprietary or Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 17 of 30 DRAFT confidential in nature, the grantee shall identify generally the information which it deems proprietary and confidential and the reasons for its confidentiality in writing to the City. Each page of such information provided will be clearly marked as proprietary and confidential. Subject to SVMC 3.65.230(D)(2), the City agrees will not dispute a grantee's designation of information as proprietary or confidential. The City will treat any information disclosed by the grantee as confidential or proprietary and only te-disclose it to those employees, representatives, and agents of the City that have a need to know in order to enforce the franchise agreement, and who agree to maintain the confidentiality of all such information. The grantee shall not be required to provide customer information in violation of Section 631 of the Cable Act or any other applicable federal or state privacy law. 2. Information submitted to the City may be subject to inspection and copying under the Washington Public RecordDisclosure Act, codified in Cchapter 42.56 RCW. The City shall timely provide a grantee with a copy of any public disclosure request to inspect or copy documentation/information which the grantee has provided to the City and marked as proprietary and confidential prior to allowing any inspection and/or copying as well as provide the grantee with a time frame, consistent with RCW 42.56.520, to provide the City with its written basis for nondisclosure of the requested documentation/information. In the event the City disagrees with the grantee's basis for nondisclosure, the City agrees to withhold release of the requested documentation/information in dispute for a reasonable amount of time to allow grantee an opportunity to file a legal action under RCW 42.56.540 as adopted or amended. 3.65.24040 Reports. A. File for Public Inspection. A grantee shall maintain at its business office, in a file available for public inspection during normal business hours, those documents required pursuant to the FCC's rules and regulations. If a franchisee does not have a local business office, then the file shall be available for viewing on-line 24 hours a day by the general public, subject to downtime for routine maintenance. B. Complaint File and Reports. A grantee will keep an accurate and comprehensive file of all complaints privacy rights of subscribers. Upon 30 days' written request, grantee will provide a report to the City that contains total number and summary of all complaints received by category, length of time taken to resolve and action taken to provide resolution. CB. Annual Report. No later than March 31st of each year, if requested by the City, grantee shall file a written report with the City, which shall include: 1. A summary of the previous calendar year's activities in development of this system, including but not limited to services begun or dropped, number of subscribers (including gains and losses), homes passed, and miles of cable distribution plant in service (including different classes if applicable), and a map of the current cable distribution plant within the City.; 2. A gross revenue statement for the preceding fiscal year and all deductions and computations for the period, and such statement shall be reviewed by a certified public accountant, who may also be the chief financial officer or controller of grantee. 3. A current statement of cost of any construction by component category; 5. If a grantee is a corporation, a list of officers and members of the board and the officers and board members of any parent corporation; Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 18 of 30 DRAFT 6. A list of all partners or stockholders holding one percent or more ownership interest in a grantee and any parent corporation; provided, however, that when any parent corporation has in excess of 20 largest stockholders of the voting stock of such corporation shall be disclosed; 7. A copy of all of a grantee's written rules and regulations applicable to subscribers and users of the cable system; 8. Any additional information related to operation of the cable system as reasonably requested by the D. Customer Service Reports. Grantee shall maintain a quarterly compliance report specific to the system in the franchise arca and shall provide such report to the City at the request of the City. Such report shall demonstrate grantee's compliance with the customer service standards set forth herein. . Grantee shall, upon request of the City, make available to the city manager or designee a description of construction plans for the following 12 months. D. The City, at its discretion, may waive in whole or in part the requirements o 2.4013 1. EF. Grantee shall, upon request of the City, make available a copy of the final report on each proof of performance test of each technical parameter defined in Part 76 of the rules and regulations of the FCC. 3.65.290 Customer service standards. A. A grantee shall comply in all respects with the customer service standards contained herein. r,aing di eFiffl fatie ad rted ,,ded C. In providing service, a grantee shall maintain a convenient local customer service location in either the City of Spokane Valley or the city of Spokane for receiving subscriber payments, handling billing questions, equipment replacement and dispensing customer service information. Also, the grantee will endeavor to accommodate a bill payment location in the City as long as there is an acceptable third party vendor available to support the service in accordance with the grantee's business practices. D. When similar complaints have been made by a number of subscribers, or where other evidence exists which, in the reasonable judgment of the City, casts doubt on the reliability or quality of the cable service, the City, notwithstanding an authority to require that grantcc test, analyze and report on the performance of the system relative to applicable technical standards of the FCC. Upon 30 day prior written notice from the City, the grantee ghal full rate with the G t. ors ruin c to t �g and shall prepare a written report of the results, if requested. E. A grantcc shall satisfy the consumer protection and service standards as outlined below. 1. Cable system office hours and telephone availability: a. Grantee will maintain a local, toll free or collect call tcicphonc access line which will be available to its subscribers 21 hours a day, seven days a week. i. Trained grantcc representatives will be available to respond to customer tcicphonc inquiries during normal business hours. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 19 of 30 DRAFT ii. After normal business hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after normal business hours must be responded to by a trained grantee representative on the next business day. b. Under normal operating conditions, telephone answer time by a customer representative, including wait time, shall not exceed 30 seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed 30 seconds. These standards shall be met no less than 90 percent of the time under normal operating conditions, measured on a quarterly basis. c. Grantee shall possess equipment to measure compliance with the telephone answering standards above. d. Under normal operating conditions, the customer will receive a busy signal less than three percent of the time. e. Customer service center and bill payment locations will be open at least during normal business hours. 2. Installations, Outages and Service Calls. Under normal operating conditions, each of the following standards will be met no less than 95 percent of the time measured on a quarterly basis: placed. i. The appointment window alternatives for installations, service calls and other installation activities will be either a specific time or, at maximum, a four hour time block during normal business hours. (Grantee may schedule service calls and other installation activities outside of normal business hours for the express convenience of the customer.) ii. Grantee may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. iii. If grantee's representati-ve ; ,. l ate f r- rtme t with a st mer and will not be able to keep the appointment as scheduled, the grantee shall use its best efforts to contact the customer prior to the time of the schcdulcd appointment. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. iv. Under normal operating conditions, if grantcc cannot perform installations within the times specified in applicable customer standards, the grantcc shall offer the subscriber a credit equal to the charge for a standard installation or other compensation of equal or greater value. For nonstandard installation, grantee shall attempt to contact a subscriber requesting an estimate of charges within seven business days of receiving the request by the subscriber. This subsection does not apply to the introduction of new products and services when grantee is utilizing a phased introduction. b. Excluding conditions beyond the control of grantcc, grantcc will begin working on service interruptions promptly and in no event later than 21 hours after the interruption becomes known. Grantcc must begin actions to correct other service problems the next business day after notification of the service problem. Grantcc shall resolve all service interruptions to the extent reasonably possible within 18 hours under normal operating conditions. i. In those caves where service is not restored within 21 hours due to unusual circumstances, the reasons for the delay shall be fully documented in an outage log. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 20 of 30 DRAFT ii. Under normal operating conditions, if after 21 hours service is not restored to a subscriber, grantee shall, upon a subscriber's request, provide a refund or credit or other compensation of equal or greater value. iii. As subscribers are connected or reconnected to the system, grantee shall, by appropriate means such as a card or brochure, furnish general subscriber information (including, but not limited to, terms of service and procedures for making inquiries or complaints, including the name, address and local telephone number of the employee or employees or agent to whom such inquiries or complaints are to be addressed) and furnish information concerning the City office responsible for the administration of the franchise agreement, including the address and telephone number of said office. 3. Communications between Grantee and Subscribers. a. Notifications to Subscribers. Grantee shall provide written information on each of the following areas at the time of installation of service, at least annually to all subscribers, and at any time upon request to subscriber or the City: i. Products and services offered; ii. Prices and options for programming services and conditions of subscription to programming and other services; iii. Installation and service maintenance policies; iv. Instructions on how to use the cable service; v. Channel positions of the programming carried on the system; and vi. Billing and complaint procedures, including the address and telephone number of the City. b. Rate/Programming Changes. i. Subscribers will be notified of any changes in rates, programming services or channel positions as soon as possible in writing. Notice must be given to subscribers a minimum of 30 days in advance of such changes if the changes are within the control of the grantee. In addition, the grantee shall notify subscribers 30 days in advance of any significant changes in the other information required by this section. Grantee shall not be required to provide prior notice of any rate changes as a result of a regulatory fee, franchise fcc or other fees, tax, transaction between the grantee and the subscriber. ii. Grantee shall provide a qualified discount program for senior and disabled customers. iii. All programming decisions remain the discretion of grantee; provided, that grantee notifies City and subscribers in writing 30 days prior to any channel additions, deletions or realignments directed to each subscriber individually through mailed notice or as an insert or addendum to the subscriber's monthly bill, email or other means reasonably calculated to give the subscriber and the City advanced notice, and further subject to grantee's signal carriage obligations hereunder and pursuant to 17 USC 531 through 536, and further subject to City's rights pursuant to 17 USC 515. Location and relocation of the PEG channels shall be governed by the franchise agreement, and further to the programming category requirements contained within the franchise agreement. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 21 of 30 DRAFT c. Billing. i. Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. ii. Billing complaints shall be responded to promptly, but in no event later than within seven days of receipt. d. Refund,. Refund check, will be issued promptly, but no later than either: i. The subscriber's next billing cycle following resolution of the request or 30 day,, whichever is earlier; or ii. The return of the equipment supplied by grantee if service is terminated. e. Credits. Credits for service will be issued no later than the subscriber's next billing cycle following the determination that a credit is warranted. f. Subscriber Charges. A list of grantee's current subscriber rates and charges for cable service shall be maintained on file with City and shall be available for public inspection. F. A grantee shall comply with all applicable federal and state privacy laws, including Section 631 of the Cable Act and regulations adopted pursuant thereto. 3.65.300 Cable advisory board. City reserves the right to maintain a cable advisory board for advisory purposes only. The grantee agrees to cooperate with reasonable requests for information, through the designated City representative, to support the cable advisory board. 3.65.250340. City ordinances and regulations. In the event of a conflict between chapter 3.65 SVMCthis code and regulations and the terms of a franchise granted pursuant to chapter 3.65 SVMCunder this chapter, the terms of the franchise shall control subject to the limitation of the City's exercise of the police powers set forth below. Subject to federal and state preemption, the material terms and conditions contained in the franchise may not be unilaterally altered by the City through subsequent amendments to any ordinance, regulation, resolution, or other enactment of the City, except within the lawful exercise of the City's police power. A gQrantee has the right to challenge any City ordinance or regulation that conflicts with its rights under a franchise. A grantee's rights under a franchise are subject to the police powers of the City to adopt and enforce ordinances necessary to protect the health, safety, and welfare of the public, and grantee agrees to comply with all applicable laws and ordinances enacted by the City pursuant to such power so long as the same do not unduly discriminate against grantee. 3.65.260340 Indemnification. No franchise agreement shall be granted under chapter 3.65 SVMC unless it includes an indemnity clause substantially conforming to the following: A. The grantee shall defend, indemnify, and hold harmless the City, its officers, officials, employees, and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of grantee's acts, errors or omissions, or from the conduct of grantee's business, or from any activity, work or thing done, permitted, or suffered by Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 22 of 30 DRAFT grantee arising from or in connection with the franchise, except only such injury or damage as shall have been occasioned by the sole negligence of the City. B. However, should a court of competent jurisdiction determine that the franchise agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the grantee and the City, its officers, officials, employees, and volunteers, the grantee's liability hereunder shall be only to the extent of the grantee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the grantee's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of SVMC 3.65.320. A grantee shall, at its sole cost and expense, indemnify and hold harmless the City, its officials, boards, commissions, agents and employees against any and all third party claims, suits, causes of action, proceedings, and judgments for injury, loss, or damage arising out of the construction, reconstruction, use, operation, ownership and maintenance of the cable system under a franchise agreement, except that no such requirement shall apply where such claims, suits, causes of actions, proceedings, and judgments for damage are occasioned by the active negligence, gross negligence or intentional acts of the City or its officials, boards, commissions, agents and employees while acting on behalf of the City. These damages shall include, but not be limited to, claims made against the City by the franchisee's employees from which the franchisee would otherwise be immune under RCW Title 51, penalties arising out of copyright infringements and damages arising out of any failure by the grantee to secure consents from the owners, not any act or omission complained of is authorized, allowed, or prohibited by a franchise agreement. Indemnified expenses shall include, but not be limited to, all out of pocket expenses, such as costs and attorneys' fees, and shall also include the reasonable value of any services rendered by the office of the city attorney, or any outside consultants employed by the City. Grantee shall not be required to provide indemnification to City for programming cablecast over the access channel administered by City. The City shall give the grantee timely written notice of any claim or of the commencement of any action, .suit or other proceeding covered by the indemnity in this section, but failure to give notice is not a defense to the indemnification obligations except to the extent of actual prejudice. In the event any such claim arises, the City or any other indemnified party shall tender the defense thereof to the grantee and the grantee shall have the obligation and duty to defend, through services of competent counsel satisfactory to it to employ separate counsel, the costs for such separate counsel shall be the responsibility of the City. 3.65.270 Insurance. Any franchise granted pursuant to chapter 3.65 SVMC shall contain the following provisions relating to insurance: A. The grantee shall procure and maintain for the duration of any franchise agreement and as long as grantee has facilities in the rights -of -way, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the agreement and use of the rights -of -way. B. No Limitation. The grantee's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the grantee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 23 of 30 DRAFT C. Minimum Scope of Insurance. The grantee shall obtain insurance of the types and coverage described below: 1. Commercial General Liability insurance shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop gap liability, independent contractors, products -completed operations, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the grantee's Commercial General Liability insurance policy with respect to any franchise agreement using ISO endorsement CG 20 12 05 09 if the franchise agreement is considered a master permit, or CG 20 26 07 04 if it is not, or substitute endorsement providing at least as broad coverage. 2. Automobile Liability insurance covering all owned, non -owned, hired, and leased vehicles. Coverage shall be at least as broad as ISO form CA 00 01. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Excess or Umbrella Liability insurance shall be excess over and at least as broad in coverage as the grantee's Commercial General Liability and Automobile Liability insurance. The City shall be named as an additional insured on the Excess or Umbrella Liability insurance policy. D. Minimum Amounts of Insurance. The grantee shall maintain the following insurance limits: 1. Commercial General Liability insurance shall be written with limits no less than $5,000,000 each occurrence, $5,000,000 general aggregate. 2. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $5,000,000 per accident. 3. Excess or Umbrella Liability insurance shall be written with limits of not less than $5,000,000 per occurrence and annual aggregate. The Excess or Umbrella Liability requirement and limits may be satisfied instead through grantee's Commercial General Liability and Automobile Liability insurance, or any combination thereof that achieves the overall required limits. E. Other Insurance Provisions. Grantee's Commercial General Liability, Automobile Liability, Excess or Umbrella Liability insurance policy or policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self -insured pool coverage maintained by the City shall be excess of the grantee's insurance and shall not contribute with it. F. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. G. Verification of Coverage. The grantee shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the agreement. H. Subcontractors. The grantee shall cause each and every subcontractor to provide insurance coverage that complies with all applicable requirements of the grantee -provided insurance as set forth herein, except the grantee shall have sole responsibility for determining the limits of coverage required to be Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 24 of 30 DRAFT obtained by subcontractors. The grantee shall ensure that the City is an additional insured on each and every subcontractor's Commercial General Liability insurance policy using an endorsement as least as broad as ISO CG 20 26. I. Notice of Cancellation. Grantee shall provide the City with written notice of any policy cancellation within two business days of their receipt of such notice. J. Failure to Maintain Insurance. Failure on the part of the grantee to maintain the insurance as required shall constitute a material breach of agreement, upon which the City may, after giving five business days' notice to the grantee to correct the breach, terminate the agreement or, at its discretion, procure, or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. K. If the grantee is self -insured or becomes self -insured during the term of the franchise agreement, grantee or its affiliated parent entity shall comply with the following: 1. Provide the City, upon request, a copy of grantee's or its parent company's most recent audited financial statements, if such financial statements are not otherwise publicly available; 2. Grantee or its parent company is responsible for all payments within the self -insured retention; and 3. Grantee assumes all defense and indemnity obligations as outlined in the indemnification section of this agreement. A. Upon the granting of a franchise agreement under this chapter and following simultaneously with the filing of the acceptance of a franchise agreement and at all times during the term of a franchise agreement, the grantee shall obtain, pay all premiums for, and deliver to the City written evidence of payment of premiums for and a certificate of insurance, naming the City as an additional insured, with a company licensed to do business in the State of Washington with a rating by A.M. Best and Co. of not less than "A" or equivalent, for the following: 1. A comprehensive commercial or general liability insurance policy or policies, issued by an insurance carrier licensed to do business in the State of Washington. Said policy or policies shall pay on behalf of and defend the City, its officials, boards, commissions, agents or employees from any and all claims by any person whatsoever (including the costs, defense costs, attorneys' fees and interest arising therefrom) on account of personal injury, bodily injury or death of a person or persons alleged to have been so caused or occurred, with a minimum combined single limit of $1,000,000 per occurrence, and $2,000,000 general aggregate for personal injury, bodily injury and property damage. 2. A comprehensive automobile liability insurance policy or policies, issued by an insurance carrier licensed to do business in the State of Washington. Said policy or policies shall pay on behalf of and defend the City, its officials, boards, commissions, agents or employees from any and all claims by any person whatsoever (including the costs, defense costs, attorneys' fees and interest arising therefrom) for bodily injury and property damage occasioned by any vehicle operation of the grantee, or alleged to have been so caused or occurred, with a minimum liability of $1,000,000 per person and $5,000,000 in any one accident or occurrence. B. Not less than 30 days prior to its expiration, grantee shall deliver to City a substitute, renewal or replacement policy or bond conforming to the provisions of this chapter. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 25 of 30 DRAFT 3.65.280344 Performance bond. A. Within 60 days of the effective date of a franchise, grantee shallwill provide a performance bond to the City in the total sum of $250,000, which will remain in effect for the term of the franchise. The performance bond is to ensure the faithful performance of grantee's obligations under the franchise including the payment by the grantee of any penalties, claims, liens, fees, or taxes due the City which arise by reason of the operation, maintenance, or construction of the cable system within the franchise area. B. If a franchise is terminated, or upon expiration, renewal, or transfer of a franchise, the City will return the original bond or sign the necessary documentation to release the bond promptly if grantee does not owe funds to the City or is not in default of a material provision of the franchise. 3.65.290 Procedure for drawing on performance bond. A. The procedure for drawing on the performance bond shall be as follows: 1. If grantee fails to make timely payment to the City of any amount due under a franchise granted pursuant to chapter 3.65.SVMC, the City shall have the right to draw on the performance bond following at least 15 days' advance written notice to grantee, unless the amount due is received within such 15 day period. 2. The time period for lawful withdrawal referenced above may be extended by the City in writing at City's discretion. A grantee may request a hearing pursuant to SVMC 3.65.310 prior to a City draw on the performance bond. This limitation expires upon expiration of the time to request the hearing, or if one is requested by grantee. It expires 30 days after the City's hearings process is concluded, whether or not further court review is requested. This shall not limit the right of a grantee to seek injunctive relief in appropriate cases with respect to said draw. B. Upon drawing funds from the performance bond, the City shall give written notice thereof to the grantee. Not later than 30 days after the mailing or delivery of the notice from the City to grantee advising of the draw, grantee shall restore the performance bond to its full required amount. 3.65.3005.64 Remedies to enforce compliance. A. This section does not apply to revocation of a franchise agreement. Whenever the City seeks to enforce a franchise agreement, it shall first provide written notice to the grantee of the nature of the problem and requested action, together with any applicable time frame for response. Any time limits here or in a franchise agreement may be modified by written agreementstifelatien between€the City and grantee, except time limits relating to revocation of a franchise agreement or where otherwise required by law must be approved by the city council. B. Except in case of urgency or public need relating to management of the public rights -of -way as reasonably determined by the City, the grantee has 30 days from receipt of such notice to respond in writing to the City official sending the notice: 1. Contesting it; Of 2. Accepting it and agreeing to cure as requested within time limits specified; or 3. Requesting additional time or other modifications. In such event, grantee shall promptly take all reasonable steps to cure the default, keeping the City informed as to the steps to be taken and a projected completion date. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 26 of 30 DRAFT C. If the City is not satisfied with the grantee's response, both parties shall meet informally to discuss the matter. If these discussions do not lead to resolution of the problem, the City shall notify the grantee in writing. Grantee may thereafter request a hearing pursuant to SVMC 3.65.310.as provided in this franchise. D. No provision of a franchise is intended to affect the right of either party to seek judicial relief from a violation of any provision of a franchise, or any regulation or directive under a franchise. The existence of other remedies under a franchise does not limit the right of either party to recover monetary damages, or to seek judicial enforcement of obligations by specific performance, injunctive relief or mandate, or any other remedy at law or in equity. 3.65.360 Liquidatcd damagcs. to the City and because it will be impractical to determine the actual amount of such damages, the City and grantee hereby agree upon and specify certain amounts set forth hereafter in this section which fees arc not subject to this section. B. The City shall specify any damages subject to this section and shall include such information in the notice sent to grantee required under SVMC 3.65.350. Such a notice may provide for damages sustained C. To the extent that the City elects to assess liquidated damages as provided in this section, and such liquidated damages have been paid, the parties agree that this shall be the City's sole and exclusive damage remedy in lieu of actual damages; provided, however, this shall not limit the right of the City to neck equitable or other relief as reserved in SVMC 3.65.370. D. Unless otherwise provided, liquidated damages do not accrue after the timely filing of a request for hearing by grantee until the time of a decision from the hearing. Nothing in this section prevents the parties from settling any dispute relating to liquidated damages by mutual stipulation. E. Grantee may cure the breach or violation within the time specified to petition for review to the City's satisfaction, whereupon no liquidated damages are assessed. F. After fulfilling the procedure rcquircd under SVMC 3.65.350, grantee has 30 days to pay such amounts, or grantee may seek review of any assessment of liquidated damages under this section. Liquidated damages shall be immediately payable from the performance bond, if review is not sought or if not paid within the 30 day period by the grantee. G. Schedule of Liquidated Damages. Liquidated damages are set as follows. All amounts accrue per day, specifically provided. Nothing requires the City to assess liquidated damages, acting in its sole discretion, but such event does not operate as waiver or estoppel upon the City. Damages resulting from failure to pay franchise fees or PEG capital contributions may be recovered in whole, without limitation. H. Pursuant to the requirements outlined herein, liquidated damages shall not exceed the following amounts: 1. Five hundred dollars per day for failure to provide cable service as promised in SVMC 3.65.090; $100.00 per day for material departure from the FCC technical performance standards; $50.00 per day for failure to provide the PEG channel or any PEG fcc related thereto which is rcquircd hereunder; $100.00 per day for each material violation of the customer service standards; $25.00 per Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 27 of 30 DRAFT day for failure to provide reports or notices as required by this chapter; and $100.00 per day for any material breaches or defaults not enumerated herein. 2. Where grantee has three or more of the same violation or breach events (an "event" may involve applicable damages amounts are doubled. 3.65.31070 Hearings. Except for revocation matters, which are dealt with in SVMC 3.65.320, a gQrantee may request a hearing as follows: A. Grantee may files a written request within 14 days of receipt of a decision it wants reviewed with the city manager. The request does not stay the effect of the decision or obligation to comply or exercise of any remedy available to the City except as otherwise provided. The city manager may conduct the hearing or appoint an alternate hearings officer, who shall not be the person issuing the order or such person's subordinate. For matters exceeding $25,000 reasonably estimated value in controversy as determined by the city manager, the grantee may file a request that the city hearings examiner conduct the hearing. A reasonable filing fee may be set by the hearings examiner or generally applicable ordinances. B. The hearing may be informal and shall be conducted within 20 days, with at least 10 days' prior notice to both sides, unless these time frames are extended by written agreement of the parties. The official conducting the hearing is responsible to keep a record of any materials submitted and shall record the hearing by video or audio tape; for matters exceeding $25,000 reasonable estimated value amount in controversy. A written decision shall be issued within 4-20 days. Either party may appeal the decision to a court of competent jurisdiction within 30 days. C. Except where otherwise provided, at the conclusion of the city hearings process, if grantee remains in default, it shall correct said default within 15 days or as otherwise ordered by the City. In the event the grantee does not cure within such time to the City's reasonable satisfaction, the City may: 1. Seek specific performance of any provision that reasonably lends itself to such remedy as an alternative to damages, or seek other equitable relief; and/or 2. Assess liquidated damages resulting from grantee's default if not already done or Await the conclusion of the judicial process. D. Where grantee seeks judicial review and ultimately prevails, any money judgment against the City shall be paid or may thereafter be offset by grantee, in grantee's discretion, against further franchise fee payments due to the City. In such event, grantee shall notify the City at least 60 days prior to apply the offset. E. Nothing in this section limits the City's right to seek to revoke a franchise agreement pursuant toin— accordance with SVMC 3.65.3240. 3.65.32040 Revocation. A. The City may revoke a franchise agreement granted pursuant to chapter 3.65 SVMCmadc under this chapter and rescind all rights and privileges associated therewith in the following circumstances: 1. Grantee abandons the cable system, fails to cure a nonpayment of a quarterly franchise fee within 30 days of the required payment date, or terminates the cable system's operations; or 2. Grantee has a pattern of failing to perform the material obligations listed under SVMC 3.65.360(H); or Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 28 of 30 DRAFT Grantee attempts to evade any material provision of the franchise agreement or practices any fraud or deceit upon the City or subscribers. B. Prior to revocation of a franchise agreement, the City shall give written notice to the grantee of its intent to revoke the franchise agreement, setting forth the exact nature of the noncompliance. The grantee shall have 30 days from such notice to object in writing and to state its reasons for such objection and provide any explanation. In the event the City has not received a timely and satisfactory response from the grantee, it may then seek a revocation of the franchise agreement by the city council in accordance with this section. C. The grantee may file a revocation hearings request within 14 days of the City's written notice of intent to revoke the franchise with the city hearings examiner. The filing fee shall be established by separate resolution, and is considered an appeal of an administrative decision. Any revocation hearing under this subsection shall be consistent with cGhapter 17.90 SVMC, except as specifically set forth in this section. This shall provide the grantee a fair opportunity for full participation, including the right to be represented by legal counsel, and to introduce evidence. Within 20 days of the hearing, the hearing examiner shall issue a recommendation to the city council. At the next available city council meeting with notice provided to the grantee, the city council shall review the city hearing examiner's record and recommendation, allowing the grantee an opportunity to state its position on the matter, reserving the right to set reasonable time limits. Within 60 days after the review, the city council shall determine whether to revoke the franchise agreement; or if the breach at issue is capable of being cured by the grantee, direct the grantee to take appropriate remedial action within the time and in the manner and on the terms and conditions that the city council determines are reasonable under the circumstances. The city council shall issue a written decision and shall transmit a copy of the decision to the grantee. Any appeal of the decision by the city council shall be to Spokane County Ssuperior Ceourt within 30 days of adoption of the decision. Upon timely appeal, the effect of the revocation is stayed pending final judicial resolution, but this shall not affect accrual of penalties or the right of the City to take any other enforcement action, including curing the default at grantee's expense and liability, also subject to judicial review. The parties shall be entitled to such relief as the court may deem appropriate. D. The city council may, in its sole discretion, take any lawful action that it deems appropriate to enforce the City's rights under the franchise agreement in lieu of revocation. 3.65.33018 Conditions of sale and removal. If a renewal of a franchise agreement is denied or a franchise agreement is lawfully terminated, and the City lawfully acquires ownership of the cable system or by its actions lawfully effects a transfer of ownership of the cable system to another person, any such acquisition or transfer shall be at a price determined pursuant to the provisions of the Cable Act. Grantee shall have no obligation to remove the Cable System where it utilizes the system to provide other, permitted and lawful, non -cable services and has obtained or is in the process of obtaining a franchise or other local authority to maintain facilitates in the public rights -of -way, or where Grantee is able to find a purchaser of the Cable System who holds such authorization. 3.65.340444 Transfer of rights. A franchise granted under this chapter may not be assigned or transferred without the written approval of the City pursuant to the provisions of the Cable Act. However, grantee can assign or transfer a franchise without approval of but upon notice to the City to any parent, affiliate, or subsidiary of grantee or to any entity that acquires all or substantially all the assets or equity of grantee, by merger, sale, consolidation, or otherwise and for transfers in trust obtained to finance construction or operations of a cable system by pledging the system as collateral. Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 29 of 30 DRAFT Section 2: Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, clause, or phrase of this Ordinance. Section 3: Effective Date. This Ordinance shall be in full force and effect five days after the publication of the Ordinance, or a summary thereof, occurs in the official newspaper of the City as provided by law. Passed by the City Council this day of , 2020. CITY OF SPOKANE VALLEY ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Approved as to form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 20-012, Amending Chapter 3.65 SVMC — Cable TV Franchises Page 30 of 30 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 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: Motion consideration — acquisition of Washington State Department of Transportation (WSDOT) Flora Road property. GOVERNING LEGISLATION: RCW 35A.11.020; SVMC 3.49.010. PREVIOUS COUNCIL ACTION TAKEN: November 12, 2019 approval of 2019 Spokane Valley Parks and Recreation Master Plan Update; February 11, 2020 winter workshop discussion on Recreation Conservation Office (RCO) grant opportunities; February 25, 2020 administrative report on potential purchase; administrative report (scheduled as a motion, which was later withdrawn) March 17, 2020; administrative report March 31, 2020; April 7, 2020 Resolution #20-006 seeking Council authorization to apply for an RCO grant, the proceeds of which would partially offset the cost of the acquisition (action on resolution was deferred until a later date); April 28, 2020 administrative report on pursuing grant for the property; May 12, 2020, Council approved Resolution #20-008 seeking Council authorization to apply for an RCO grant, the proceeds of which would partially offset the cost of the acquisition; May 26, 2020 administrative report regarding WSDOT willingness to delay the sale; September 22, 2020 administrative report. BACKGROUND: The City has been negotiating with the WSDOT for the acquisition of 45.73 acres east of Flora Road, immediately north of the Spokane River. The property would be used for park purposes. The purchase price is $2,091,600, which was established by appraisal. A small section of the easterly portion of the property abuts the Spokane River, with the rest of the property having a 225 foot strip of property belonging to Washington State Parks between the Spokane River and the property to be purchased. A map is attached for further reference. The property is largely in a natural state, with extensive coniferous trees along the westerly and southerly boundaries. The City applied for a grant from the Washington State Recreation and Conservation Office (RCO) for up to one million dollars to offset part of the purchase price. The final grant application evaluation presentation was conducted September 22, 2020, and the ranking of this proposal relative to all of the other submissions for funding is expected to be complete within several weeks. All applicants, including the City, will then await the final funding allocation by the Legislature in mid -spring, 2021 to determine if funds are awarded. The Council voted on March 17, 2020 to remove the motion consideration for the purchase due to significant concerns and questions regarding the unknown impact on City finances from the coronavirus pandemic. Since that time, staff has provided several updates to Council regarding the property, and financial issues relating to City revenue. WSDOT has been excellent to work with as City staff have worked to keep Council updated regarding needing additional time during the pandemic to consider the purchase. WSDOT most recently stated that they have no other immediate plans for the property, and could wait until at least December 2020 if the City requested to do that. At the September 22, 2020 meeting, a majority of Council requested that staff bring a motion back to authorize staff to finalize and execute all documents necessary to complete the transaction with WSDOT. OPTIONS: (1) Motion authorizing staff to acquire the WSDOT Flora property; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: I move we authorize staff to finalize and execute any documents necessary to acquire Spokane County parcel numbers 55072.0324, 55072.0318, 55072.0319, and 55075.0218 from the Washington State Department of Transportation for parks and recreation purposes, and that any funds used for this purchase that were previously earmarked for use in the Balfour Park project be replenished by the City with the next available excess carryover funds in Capital Reserve Fund #312. BUDGET/FINANCIAL IMPACTS: $2,091,600 plus associated closing costs. The sources of funds to accomplish the acquisition are as follows: • $200,000 from Park Capital Projects Fund #309 reserves that are currently unobligated; • $500,000 from Capital Reserve Fund #312 that has been earmarked for park land acquisition; • $281,209 from Capital Reserve Fund #312 that is currently unallocated; and • $1,110,394 (plus any costs associated with closing) from reallocating money in Capital Reserve Fund #312 that is currently earmarked for other projects but not yet committed. The only viable earmark staff has been able to identify in this category is money set aside for future Balfour Park improvements. If $1,110,394 of the current $1,985,000 earmark was reallocated to the WSDOT Flora acquisition, this would leave $874,606 still earmarked for Balfour Park. • Potentially up to $1,000,000 from an RCO grant, to be determined in spring 2021. Acquisition of this property is not currently included as an appropriation in the 2020 Budget. If the acquisition is made in 2020, this will necessitate a budget amendment this year. STAFF CONTACT: Cary Driskell, City Attorney; Mike Stone, Parks and Recreation Director. ATTACHMENTS: PowerPoint presentation (includes video footage of the site) FLORA RIVER TRAIL PROPERTY ACQUISITION #20-1308A WWRP — Local Parks City of Spokane Valley Parks & Recreation 01 I FLORA RIVER TRAIL PROPERTY ACQUISITIC`m Stio- 0.00va1key, architecture . interior design . landscape architecture BERNARDOILLSEMEI ARCHITECTS RCNiTECTS PC 1. Public Park Plan Concept Spokane Valley Para • CentennialTrai4 r1 OLIKilla Agency Darks 1, Parks 8horeland Aesess • Existing * Opportunity Sbte New Park Alas Parmia.M. GazaRsian Ava tworrellag a*. a.ner Figure 6-A: 2019 Proposed Park Layout Plan 11 I FLORA RIVER TRAIL PROPERTY ACQUISIT River Trail Property was idpntifinr1 during the Parks & Rec. Masterplan 2019 Update Parks and Recreation Master Plan 2019 Update SOlikane 2. Project 18 18 I FLORA RIVER TRAIL PROPERTY ACQUISIT' Siotane .000Va1iey. 2. Project 20 1 FLORA RIVER TRAIL PROPERTY ACQUISITI1 Stiokane 8. Project 8appo FRIENDS OF THE CENTENNIAL TRAIL GIPAI pori an forum Spokane RIVERKEEPER® J Spokane County PARKS, RECREATION AND GOLF GREATER SPOKANF. VALLEY HAMBER NIORTHr T� HI W , E �+ TI Ni OF COMMERCE OVER 25 YEAR$ OF GETTING INTO NOT -WATER • WWW+NORTNWE3TWNITEWATER.ORG SCKC Spokane Canoe and Kayak Club ".,e%kek WeiVaIley SCHOOL DISTRICT 1,363 BOY SCOUTS OF AMERICA INLAND NORTHWEST COUNCIL ESTABLISHED • 1489 29 1 FLORA RIVER TRAIL PROPERTY ACQUISII Spokan e� 0 33 1 FLORA RIVER TRAIL PROPERTY ACQUISITIC Siiokane CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 2020 Department Director Approval: El Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® Admin. Report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Nonconforming Use Code Text Amendment — CTA-2020-0003 GOVERNING LEGISLATION: SVMC 17.80.150; SVMC 19.30.040; and SVMC 19.25; RCW 36.70A.106; and 36.70A.200; WAC 365-196-550 PREVIOUS COUNCIL ACTION TAKEN: 9-22-2020 Admin Report BACKGROUND: The proposed amendment is a City -initiated code text amendment to the Spokane Valley Municipal Code (SVMC) chapter 19.25 SVMC to prohibit the expansion of a nonconforming use onto adjacent lots and to clarify that residential uses located in nonresidential zones are permitted uses. Generally, nonconforming uses are uses that began as lawful uses, but which became nonconforming when regulations were later changed. Chapter 19.25 SVMC regulates nonconforming uses and structures. Appendix A Definitions of the SVMC defines a nonconforming use as, "A lot, use, building, or structure, which was legal when commenced or built, but which does not conform to subsequently enacted or amended regulations pursuant to Chapter 19.25 SVMC." Chapter 19.25 SVMC defines what is considered a legal nonconforming use or structure and provides conditions for how a legal nonconforming use may continue and be expanded. The City's nonconforming use regulations were originally adopted in 2007 by Ordinance No. 07-015 and modified by Ordinance Nos. 09-036, 10-016, and 10-023. Of note, the primary amendments occurred in Ordinance No. 10-016 in 2010, by allowing nonconforming uses to expand on properties outside of the original boundaries of the use if certain criteria were met. Other than minor housekeeping changes, no substantive amendments have been made to the nonconforming use regulations since 2010. CTA 2020-0003 proposes to modify the criteria which allows for expansion outside of the original property boundaries, but as modified by the Planning Commission allow expansion onto properties commonly owned at the time the use became nonconforming subject to criteria. Further discussion by the Council indicated a desire to modify the language further and allow expansion if the properties were under the same ownership and had the same zoning classification at the time of purchase. The Council directed staff to bring back language for further discussion. Additionally CTA-2020-0003 included a proposed revision to Chapter 19.25 SVMC that identifies a residential use in a nonresidential zone as a permitted use not subject to the nonconforming use regulations. During the September 22, 2020 discussion council indicated concurrence on this section of the proposal. No further information is provided. Staff will discuss the regulations as they exist and discuss additional language as directed by Council. The Planning Commission (Commission) conducted a study session on the proposed CTA at the July 23, 2020 meeting. On August 13, 2020, the Commission conducted a public hearing and deliberations. At that meeting, the Commission voted 6-0 to recommend to the City Council that CTA-2020-0003 be approved with modifications. The Commission felt that nonconforming uses should be allowed to expand onto adjacent properties if the properties were under the same ownership at the time the use on the original lot became nonconforming if certain criteria were met. This is consistent with current code language. On August 27, 2020, the Commission adopted Findings and Recommendation. OPTIONS: Consensus to move the request forward to a first ordinance reading as presented, with or without modifications; or take other action deemed appropriate. RECOMMENDED ACTION OR MOTION: Council consensus to move the code text amendment forward as presented to an ordinance first reading; or as modified by Council. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Jenny Nickerson, MCP, Building Official, Community and Public Works Dept. ATTACHMENTS: A. PowerPoint Presentation B. Draft CTA-2020-0003 code text language C. Planning Commission's Findings of Fact and recommendation D. Planning Commission Meeting Minutes: 7/23/2020, 8/13/2020, and 8/27/2020 E. Staff Report CTA-2020-0003 siii-- _.Valley Nonconforming Use Regulations CTA-2020-0003 Admin Report #2 City Council Meeting October 6, 2020 Environmental Review N N N 1 ti •- •"I N N O � •- z u� d Process •- 1 Study Session July 23, 2020 Public Hearing August 13, 2020 Findings of Fact 41 August 27, 2020 A A A Administrative Report September 22, 2020 #1 October 6, 2020 #2 " Ordinance 1st Reading TBD Ordinance 2nd Reading U TBD Today Chapter 19.25 Applicability (Current regulations) Issue: Determines single family residential uses are subject to nonconforming use regulations. 19.25.010 Applicability A. Legal nonconforming uses and structures include: 1. Any use which does not conform with the present regulations of the zoning district in which it is located that was in existence and in continuous and lawful operation prior to the adoption of SVMC Title 19; 2. Any permanent structure in existence and lawfully constructed at the time of any amendment to SVMC Title 19, which by such amendment is placed in a zoning district wherein it is not otherwise permitted and has since been in regular and continuous use; 3. Any permanent structure lawfully used or constructed that was in existence at the time of annexation into the City rind which hric cincP • ular and continuous use; . Existing legally established single-family residential uses located in a nonresidentia B. Structures or uses deemed nonconforming only pursuant to the SMA Chapter 19.25 Applicability (Proposed regulations) Solution: Determine single family residential uses are permitted uses and not subject to nonconforming use regulations. 19.25.010 Applicability A. Legal nonconforming uses and structures include: 1. Any use which does not conform with the present regulations of the zoning district in which it is located that was in existence and in continuous and lawful operation prior to the adoption of SVMC Title 1 9; 2. Any permanent structure in existence and lawfully constructed at the time of any amendment to SVMC Title 19, which by such amendment is placed in a zoning district wherein it is not otherwise permitted and has since been in regular and continuous use; 3. Any permanent structure lawfully used or constructed that was in existence at the time of annexation into the City and which has since been in regular and continuous use; 4. Ex' iiy established single-family residential structuresuscs located in a no oning district shall not be deemed nonconforming and shall be permitted as a legal use. B. Structures or uses deemed nonconforming only pursuant to the SMA Chapter 19.25 Continuing Lawful Use of the property (Current regulations) Issue: Allows a nonconforming use in nonresidential zone to expand outside of original lot boundaries D. A nonconforming use in residential zones may be expanded only within the boundaries of the original lot and any adjacent lot having the same ownership as the lot at the time the use on the original lot became rming, if: 1. The expanded use does no a er t an the original use; 2. The expanded use does not adversely impact the use of neighboring property; 3. Any transfer of ownership on adjacent lots was made concurrently with the transfer of ownership of the lot on which the nonconforming use is located as part of a single transaction; and 4. The expansion does not create additional development o• •ortunities on adjacent lots that would not otherwise exist. E. - - conforming use in a nonresidential zoning district may be expanded only within the boundari e original lot and any lot adjacent to the original lot, if: 1. The original lot and the "expansion" lot are in the same zoning district; 2. The expanded use does not degrade the transportation level of service greater than the original use; and 3. - - .. anded use does not adversely impact the use of neighboring property. Chapter 19.25 Continuing Lawful Use of the property (Planning Commission Recommendation) Planning Commission Recommendation: Allow a nonconforming use to expand only within the original lot boundaries and adjacent properties with same ownership D. A nonconforming use in rcsidcntial zoncs may be expanded only within the boundaries of the original lot and any adjacent lot having the same ownership and z . .sificatiol as the lot at the time the use on •e original lot became nonconforming, if: 1. The expanded use „ot reri ilaa +rrvncpnr+atinn laaca n the original use; 2. The expanded use does not adversely impact the use of neighbor lroperty; 3 A n ne.fcr 01 n to adw rrcn 34. The expansion does not create additional development opportunities otherwise exist; and 4. The use is not a single family residential use. E. A nonconforming use in a nonrcsidcntial zoning district ma— " pansion" lot arc in the same. 2. Thc c 1 -ent lots that would not Council Discussion: Allow a nonconforming use to expand within the original lot boundaries and adjacent properties with same ownership and zoning classification Example of a Nonconforming Use Expansion onto adjacent properties: Current Regulations — Allows expansion onto adjacent properties in same zoning district. Note: All properties are zoned Industrial Eden Pit - Active Gravel Mine Proposed Regulations — Prohibits expansion onto adjacent properties since they were under different ownership at the time the use became nonconforming. Discussion Consensus to move the CTA forward to Ordinance 1 St Reading as presented Draft Draft Chapter 19.25 NONCONFORMING USES AND STRUCTURES Sections: 19.25.010 Applicability. 19.25.020 Continuing lawful use of property. 19.25.030 Nonconforming structures. 19.25.040 Completion of permanent structures. 19.25.010 Applicability. A. Legal nonconforming uses and structures include: 1. Any use which does not conform with the present regulations of the zoning district in which it is located that was in existence and in continuous and lawful operation prior to the adoption of SVMC Title 19; 2. Any permanent structure in existence and lawfully constructed at the time of any amendment to SVMC Title 19, which by such amendment is placed in a zoning district wherein it is not otherwise permitted and has since been in regular and continuous use; 3. Any permanent structure lawfully used or constructed that was in existence at the time of annexation into the City and which has since been in regular and continuous use; 4. Existing legally established single-family residential structures uses located in a nonresidential zoning district shall not be deemed nonconforming and shall be permitted as a legal structure. B. Structures or uses deemed nonconforming only pursuant to the SMA (Chapter 90.58 RCW) and the City SMP (Chapter 21.50 SVMC, Shoreline Regulations) shall comply with the provisions of SVMC 21.50.160. (Ord. 16-018 § 6 (Att.13), 2016). 19.25.020 Continuing lawful use of property. A. The lawful use of land at the time of passage of SVMC Title 19, or any amendments hereto, may be continued, unless the use is discontinued or abandoned for a period of 12 consecutive months; except that any nonconforming use d i ~continued as a result of foreclosure or judicial proceedings, including probate, shall be permitted to continue for a period not to exceed 24 months. The right to continue the nonconforming use shall transfer to all successive interests in the property. Discontinuance of a nonconforming use shall commence on the actual act or date of discontinuance. B. A nonconforming use that is abandoned or discontinued shall not be replaced with another nonconforming use. C. A nonconforming use which has not been abandoned or discontinued may be replaced with a conforming use or another nonconforming use when the use meets the following criteria: 1. The new use is not less conforming than the prior use. This determination shall be made by the city manager or designee; 2. The proposed use does not place a greater demand on transportation and other public facilities than the original use; and 3. The proposed use does not adversely impact the use of neighboring property. D. A nonconforming use in re.iiden..s zones may be expanded only within the boundaries of the original lot and any adjacent lot having the same ownership as the lot at the time the use on the original lot became nonconforming, if 1. The expanded use does not degrade the transportation level of service greater than the original use; 2. The expanded use does not adversely impact the use of neighboring property; CTA-2020-0003 Page 1 August 18, 2020 Draft 3. Any transfer of ownership on adjacent lots was made concurrently with the transfer of ownership of the lot on which the nonconforming use is located as part of a single transaction; and 4. The expansion does not create additional development opportunities on adjacent lots that would not otherwise exist. 5. The use is not a single-family residential use. R. original lot and any lot adjacent to the original lot, if: 2. The expanded use does not degrade the tr•ansper.tation level of service greater-then-the-eFiginal-usend , 3. The expanded use does not adversely impact the use of neighboring property. E.R. Residential lots made nonconforming relative to dimensional requirements shall be deemed conforming if the use is allowed in the respective zoning district. F.6: Nonconforming uses that do not provide the required number of off-street parking spaces pursuant to current standards shall not be required to meet parking standards. GR. Any nonconforming use damaged by fire, flood, neglect, or act of nature may be replaced if: 1. Restoration of the use is initiated within 12 months; and 2. The damage represents less than 80 percent of market value. HT. Any nonconforming use changed to a conforming use shall not be permitted to convert to a nonconforming use. (Ord. 17-004 § 3, 2017; Ord. 16-018 § 6 (Att. B), 2016). 19.25.030 Nonconforming structures. A nonconforming structure may be expanded in accordance with the following: A. The expansion or alteration does not change the occupancy classification under adopted building codes; B. The expansion or alteration does not create additional nonconformity with respect to building setbacks or lot coverage; additions to nonconforming structures shall meet setbacks required within the zoning district; C. The number of dwelling units does not increase so as to exceed the number of dwelling units permitted within current regulations; D. Off-street loading and/or parking, stormwater facilities, and landscaping shall be provided for the alteration or expansion in accordance with Chapter 22.50 SVMC; and E. Nonconforming structures damaged by fire, flood, neglect, or act of nature may be replaced if: 1. Restoration of the structure is initiated within 12 months; and 2. The damage represents less than 80 percent of market value of the structure. (Ord. 16-018 § 6 (Att. B), 2016). 19.25.040 Completion of permanent structures. Compliance with Chapter 19.25 SVMC shall not require changes to the plans, construction, or designated use of a structure for which: A. A building permit has been issued or a site plan approved by the City or county prior to incorporation of the City or the effective date of SVMC Title 19; or CTA-2020-0003 Page 2 August 18, 2020 Draft B. A substantially complete application for a building permit was accepted by the building official on or before the effective date of the SVMC Title 19; provided, that the building permit shall comply with all applicable regulations on the date that the application was filed and the building permit is issued within 180 days of the effective date of Chapter 19.25 SVMC. (Ord. 16-018 § 6 (Att. B), 2016). CTA-2020-0003 Page 3 August 18, 2020 FINDINGS AND RECOMMENDATIONS OF THE SPOKANE VALLEY PLANNING COMMISSION CTA-2020-0003 Proposed Amendment to Spokane Valley Municipal. Code (SVMC) Pursuant to SVMC 17.80.150(E) the Planning Commission shall consider the proposal and shall prepare and forward a recommendation to the City Council following the public hearing. The following findings are consistent with the Planning Commission recommendation. Background: 1. Pursuant to RCW 36.70A.130, Spokane Valley adopted its 2016 Comprehensive Plan Update and updated development regulations on December 13, 2016, with December 28, 2016 as the effective date. 2. CTA-2020-0003 is a City -initiated text amendment to the SVMC, amending chapter 19.25 of the SVMC to prohibit the expansion of a nonconforming use onto adjacent lots and determine residential uses located in nonresidential zones are permitted uses, and to address other housekeeping items. 3. The Planning Commission held a properly noticed public hearing and conducted deliberations on August 13, 2020. The Commissioners voted 6-0 to recommend that the City Council adopt the amendment. Planning Commission Findings: 1. Compliance with SVMC 17.80.150(F) Approval Criteria a. The proposed text amendment is consistent with the applicable provisions of the Comprehensive Plan. Findings: The proposed amendment is supported by the Comprehensive Plan and is consistent with the following goals and policies: LU-G1 Maintain and enhance the character and quality of life in Spokane Valley. LU-P5 Ensure compatibility between adjacent residential and commercial or industrial uses LU-P7 Protect residential neighborhoods from incompatible land uses and adverse impacts associated with transportation corridors. ED-G3 Balance economic development with community development priorities and fiscal sustainability. T-G2 Ensure that transportation planning efforts reflect anticipated land use patterns and support identified growth opportunities. T-P2 Consider neighborhood traffic and livability conditions and address potential adverse impacts of public and private projects during the planning, designing, permitting, and construction phases. Conclusion: The proposed text amendment is supported by the Comprehensive Plan and consistent with the goals and policies. Findings and Recommendations of the Spokane Valley Planning Commission CTA-2020-0003 Page 1 of 2 b. The proposed amendment bears a substantial relation to public health, safety, welfare and protection of the environment. Findings: The proposed amendment bears substantial relation to public health, safety, welfare and protection of the environment. Allowing nonconforming uses to operate and expand onsite protects the interests of the current property owners and the investments made; allowing nonconforming uses to expand to an adjacent lot having the same ownership as the lot at the time the use on the original lot became nonconforming protects the long term interests of those property owners and promotes business retention; restricting the expansion of nonconforming uses outside of those properties commonly held at the time the use became nonconforming ensures that future growth is consistent with the comprehensive plan and protects the interest of the surrounding properties. The proposed amendment recognizes that nonconforming residential uses may be the best use of the property until the market supports the redevelopment of the property to either a commercial or industrial use and establishes a stable framework for the residential property owner to address the concerns of financial lenders. Conclusion: The proposed text amendment is consistent with Comprehensive Plan and bears a substantial relation to public health, safety, welfare, and protection of the environment. 2. Recommendation: The Spokane Valley Planning Commission therefore recommends the City Council approve CTA-2020- 0003 as amended. Attachment: Exhibit 1 — Proposed Amendment CTA-2020-0003 Approved this 27th day of August, 2020 Planning Commission Chairman ATTEST Marianne Lemons, Office Assistant Findings and Recommendations of the Spokane Valley Planning Commission CTA-2020-0003 Page 2 of 2 Regular Meeting Minutes Spokane Valley Planning Commission Council Chambers — City Hall July 23', 2020 I. Chair Johnson called the meeting to order at 6:00 p.m. The meeting was held remotely via ZOOM meeting. II. Commissioners, staff and audience stood for the pledge of allegiance. III. Administrative Assistant Taylor Dillard took roll and the following members and staff were present: Fred Beaulac, Joined At 6:25 pm Walt Haneke James Johnson Danielle Kaschmitter Tim Kelley Bob McKinley Sherri Robinson Erik Lamb, Deputy City Attorney Jenny Nickerson, Building Official Mike Basinger, Economic Development Manager Lori Barlow, Senior Planner Chaz Bates, Senior Planner Taylor Dillard, Administrative Assistant Marianne Lemons, Office Assistant There was a consensus from the Planning Commission to excuse Commissioner Beaulac from the meeting. IV. AGENDA: Commissioner Kaschmitter moved to approve the July 23, 2020 agenda as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. V. MINUTES: Commissioner Kaschmitter moved to approve the amended June 11, 2020 minutes as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. Commissioner Kaschmitter moved to approve the July 9, 2020 minutes as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. VI. COMMISSION REPORTS: Chairman Johnson reported that he has continued to attend the Spokane County Human Rights Task Force meetings. There were no other reports. VII. ADMINISTRATIVE REPORT: Building Official Jenny Nickerson reminded the commissioners to drop off their yellow binders to City Hall so they can be used for the City Council packets. Ms. Nickerson also requested that the letter from applicant Jay Rambo regarding CPA-2020-0003 and the agency comments included for CTA-2020-0003 be removed from the Planning Commission Packet. They were included in error. VIII. PUBLIC COMMENT: There was no public comment. 1 07-23-2020 Planning Commission Minutes Page 2 of 4 IX. COMMISSION BUSINESS: a. Findings of Fact: 2020 Annual Comprehensive Plan Amendments Senior Planner Chaz Bates gave a presentation to the commission. He explained that there were two study sessions held on March 6, 2020 and June 11, 2020 regarding these amendments. The public hearing was held on June 25, 2020 and the Planning Commission deliberated on each amendment individually and came up with recommendations to be submitted to the City Council. The PIanning Commission voted to recommend approval of CPA-2020-0001, CPA-2020-0002, and CPA-2020-0006. The Planning Commission voted to recommend denial of CPA-2020-0003 and CPA-2020-0007. This item is being heard to formalize those findings and the Planning Commission vote on each amendment. Commissioner Kaschmitter moved to approve and forward to City Council the findings and recommendation of the Planning Commission for the proposed Comprehensive Plan amendments CPA-2020-0001, CPA-2020-0002, CPA-2020-0003, CPA-2020-0006, and CPA-2020-0007. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. b. Findings Of Fact: CTA-2020-0001, A proposed atnendment to Spokane Valley Municipal Code (SVMC) 19.180 Annexations Economic Development Manager Mike Basinger explained that the proposed amendment to the SVMC is to clarify the process and criteria to annex areas which are adjacent and contiguous to the City. It also ensures that the fiscal impacts of providing the facilities, utilities, services, and maintenance of the annexation areas are adequately considered prior to annexation. The process included a study session on June 11, 2020 and a public hearing on July 9, 2020. During the public hearing, the Planning Commission voted to recommend approval of the proposed change. This item is being heard to formalize those findings and the Planning Commission vote. Commissioner Kaschinitter moved to approve and forward to City Council the findings and recommendation of the Planning Commission for the proposed amendment CTA-2020-0001. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. c. Findings Of Fact: CTA-2020-0002, A proposed amendment to SVMC 19.90 Essential Public Facilities Senior Planner Lori Barlow stated that this proposed amendment is to prohibit locally significant Essential Public Facilities (EPF) in residential zones and allow EPF's in the Mixed -Use zone. The process included a study session on June 11, 2020 and a public hearing on July 9, 2020. The Planning Commission voted to recommend approval of the proposed change. This item is being heard to formalize those findings and the Planning Commission vote. Commissioner Kasehmitter moved to approve and forward the City Council the findings and recommendations of the Planning Commission for proposed amendment CTA-2020-0002. 2 07-23-2020 Planning Commission Minutes page 3 of 4 There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. d. Study Session: CTA-2020-0003, Nonconforming Use Code Text Amendment Senior Planner Lori Barlow gave the Commission a presentation explaining that Chapter 19.25 of the SVMC regulates nonconforming uses and structures and defines what is considered a legal nonconforming use or structure. According to the municipal code, nonconforming uses are uses or structures that were legally permitted under the applicable regulations at the time the use or structure came into existence and began lawful operations but subsequent changes or amendments to the zoning regulations occurred and made the use or structure nonconforming. Under this section of the municipal code, these nonconforming uses are allowed to continue and are subject to regulations of this chapter. The chapter also outlines the circumstances that a nonconforming use can be expanded. There are two reasons that the City has been prompted to look at this item. The first reason is regarding single family residential uses in a non-residential zoning district. In the applicability section of SVMC 19.25.010(4) states that existing legally established single- family residential uses located in a nonresidential zoning district are defined as a legal nonconforming use or structure. According to SVMC 19.25.030(E), if a structure is damaged by fire, flood, neglect, or act of nature more than eighty percent of the market value, it may not be rebuilt. This notation in the municipal code is causing problems for residents to get financing to either refinance a current mortgage or get a new mortgage. Banks want to make sure that they can retain their value in the event of a disaster. Staff is proposing to make a change to item four of the applicability regulation that states "existing legally established single-family residential uses located in a nonresidential zoning district shall not be deemed nonconforming and shall be permitted as a legal use." Commissioner Beaulac joined the meeting at 6:25 pin. Ms. Barlow continued that the second reason that has prompted the code text amendment is regarding the ability for property owners to expand nonconforming uses. The current regulations state that nonconforming uses can be expanded within the boundaries of the original lot and any lot adjacent to the original lot if they meet all eriteria laid out in the code. Staff is proposing to remove the language from the code allowing expansion onto adjacent lots. Nonconforming uses will continue to be allowed to expand only within the confines of the boundaries of the original lot. Commissioner Haneke asked if a nonconforming use is only allowed to expand one time onto an adjacent lot. Ms. Barlow answered that staff interpretation would be that owners are limited to expand only one time onto an adjacent lot. However, this isn't a situation that has come up for review yet. The proposed amendment would limit expansions to only occur on the confines of the original lot and would prohibit expansion onto any adjacent locations. Commissioners Haneke and McKinley expressed concern over the change because it would limit businesses from growing. It's substantially less expensive to expand than relocate and relocation could be outside of the City limits. Commissioner Haneke asked how many nonconforming residential units there are within the City limits. Ms. Barlow stated that she will try to get that data from the GIS analyst for the next meeting. 3 07-23-2020 Planning Commission Minutes Page 4 of 4 Deputy City Attorney Erik Lamb mentioned that this will also apply to all mining operations, Currently in the code, all mining within the City limits is considered a nonconforming use because mining really isn't appropriate within an urban setting. However, under the current regulations mining can be expanded onto adjacent properties if the owners purchase the land. This change will eliminate that ability. X. GOOD OF THE ORDER: Commissioner Beaulac apologized for being late to the meeting. Commissioner Haneke and Commissioner Kaschmitter thanked staff for their hard work. XI. ADJOURNMENT: Commissioner McKinley moved to adjourn the meeting at 6:54 pm. The vote on the motion was seven in favor, zero against, and the motion passed. James Johnson, Chair Date signed Deanna Horton, Secretary 4 Regular Meeting Minutes Spokane Valley Planning Commission Council Chambers — City Hall August 13, 2020 I. Chair Johnson called the meeting to order at 6:00 p.m. The meeting was held remotely via ZOOM meeting. II. Commissioners, staff and audience stood for the pledge of allegiance. III. Administrative Assistant Taylor Dillard took roll and the following members and staff were present: Fred Beaulac Walt Haneke James Johnson Danielle Kaschmitter, absent Tim Kelley Bob McKinley Sherri Robinson Erik Lamb, Deputy City Attorney Jenny Nickerson, Building Official Lori Barlow, Senior Planner Connor Lange, Planner Taylor Dillard, Administrative Assistant Marianne Lemons, Office Assistant There was a consensus from the Planning Commission to excuse Commissioner Kaschmitter from the meeting. IV. AGENDA: Commissioner Beaulac moved to approve the August 13, 2020 agenda as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. V. MINUTES: Commissioner McKinley moved to approve the amended July 23, 2020 minutes as presented with one change to page 3 paragraph 7 sentence 2 to read: "It's substantially less expensive to expand than relocate and relocation could be outside of the City limits." There was no discussion. The vote an the motion was six in favor, zero against and the motion passed. VI. COMMISSION REPORTS: Chair Johnson reported that he continues to attend the Human Rights Task Force meetings. He also informed the Planning Commission that he attended the City Council meeting on August 4, 2020 and they came to a consensus to approve all of the Comprehensive Plan amendments that were submitted. VII. ADMINISTRATIVE REPORT: There was no administrative report. VIII. PUBLIC COMMENT: There was no public comment. IX. COMMISSION BUSINESS: 1 08-13-2020 Planning Commission Minutes Page 2 of 5 a. Public Hearing: CTA-2020-0003, Proposed amendment to Spokane Valley Municipal Code (SVMC) Chapter 19.25, Nonconforming Uses and Structures The Public Hearing was opened at 6:09 pm. Senior Planner Lori Barlow gave the Commission a presentation explaining that Chapter 19.25 of the SVMC regulates nonconforming uses and structures and defines what is considered a legal nonconforming use or structure. According to the municipal code, nonconforming uses are uses or structures that were legally permitted under the applicable regulations at the time the use or structure came into existence and began lawful operations but subsequent changes or amendments to the zoning regulations occurred and made the use or structure nonconforming. Under this section of the municipal code, these nonconforming uses are allowed to continue and are subject to regulations of this chapter. The chapter also outlines the circumstances that a nonconforming use can be expanded. This item was presented to the Commission as an administrative report on July 23, 2020 and proper noticing has been done for the public hearing. An environmental review has been conducted and it concluded that there would be no environmental impacts if this code text amendment were approved. Ms. Barlow explained that there are two reasons that the City has been prompted to look at this item. The first reason is regarding single family residential structures in a non- residential zoning district. The applicability section of SVMC 19.25.010(4) states that existing legally established single-family residential structures located in a nonresidential zoning district are defined as a legal nonconforming use or structure. According to SVMC 19.25.030(E), "f a structure is damaged byfrre, flood, neglect, or act of nature more than eighty percent of the market value, it inay not be rebuilt." This notation in the municipal code causes problems for residents to get financing to either refinance a current mortgage or get a new mortgage. Banks want to make sure that they can retain their value in the event of a disaster. Staff is proposing to make a change to item four of the applicability regulation that states "existing legally established single family residential structures located in a nonresidential zoning district shall not be deemed nonconforming and shall be permitted as a legal use." This change to the language removes these homes from being reviewed and regulated under the nonconforming use regulations. Ms. Barlow noted that there is a change in this language from the last meeting. Previously, the language read single-family residential "uses". That language has been updated to single-family residential "structures" to prevent additional nonconformities within zoning districts. A damaged single-family home cannot be replaced with a multifamily dwelling and cannot be subdivided for residential purposes. According to the City's GIS Department, there are approximately 190 single-family residential structures identified that will be affected by this change. Ms. Barlow continued that the second item that has prompted this code text amendment is regarding the ability for property owners to expand nonconforming uses. The current regulations state that nonconforming uses can be expanded within the boundaries of the original lot and any lot adjacent to the original lot if they meet all criteria laid out in the municipal code. Staff is proposing to remove the language from the municipal code allowing expansion onto adjacent lots. Nonconforming uses will continue to be allowed to expand within the confines of the boundaries of the original lot only. Commissioner Haneke asked if a property owner owns a lot adjacent to a nonconforming use prior to it being deemed nonconforming, would this change stop the business from being allowed to expand onto the second lot. Ms. Barlow answered that this change would prohibit 2 08-13-2020 Planning Commission Minutes Page 3 of 5 that expansion. Commissioner Haneke expressed that he would like the municipal code to allow expansion on adjacent properties that were owned by the same property owner prior to the nonconforming designation. Ms. Barlow explained that currently the municipal code defines the ability to expand into two categories: nonconforming uses in residential zones and nonconforming uses in non- residential zones. The existing language regarding residential zones states that property owners can expand to an adjacent lot if both lots were owned prior to the nonconforming designation. The language pertaining to nonresidential zones states that expansion could happen on an adjacent lot subject to specific criteria. The proposal is to eliminate the expansion criteria onto adjacent lots and limit expansion to the confines of the existing lot regardless of whether the property is residential or nonresidential. The public hearing was closed at 6: 48 PM Commissioner McKinley expressed concern that this change could cause businesses to leave the City limits if they are unable to expand in their current location and need additional space. He feels that businesses should be allowed to expand rather than forcing them to relocate. Commissioner Kelley expressed that he feels that residential and nonresidential should be treated equally within the code. Ms. Barlow responded that residential and nonresidential are reviewed differently. The proposed change to residential would allow legal nonconforming single-family residences to continue and expand under the regulations. Businesses would need to comply and expansion would only be allowed within the confines of their existing lot or they would have to relocate their business to a location that is zoned properly for their business use. The logic for this difference is based on the market dictating when those residential uses will become more valuable as commercial or industrial. A pocket of residences isn't going to change until the market creates an opportunity where there is a significant value in making adjustment to the property. Staff wants to make sure that the municipal code does not create a burden on the single-family home property owners causing them to be unable to refinance or sell their property. There was consensus from the Commission regarding approval of the change to the residential portion of the municipal code that protects homeowners of legal nonconforming structures. Chairman Johnson clarified that the primary concern of the Commission is that this change will limit a property owner that owns an adjacent property to a nonconforming use to utilize that property as expansion for the nonconforming business. He asked if there should be a time limitation on their ability to expand onto that property. Commissioner Haneke responded that he feels the property owners should be allowed to maintain the expansion ability for as long as they own the property (if the property was purchased prior to the nonconforming designation). However, if the property is sold it would lose that possibility. He would like to see this change apply to both residential and nonresidential, There was lengthy discussion regarding how to make these changes to the code text. Deputy City Attorney Erik Lamb presented an updated draft code based on the conversation updating Chapter 19.25.020(D) to state the following: 3 08-13-2020 Planning Commission Minutes Page 4 of 5 D. A nonconforming use in residential Zones may be expanded only within the boundaries of the original lot and any adjacent lot having the same ownership as the lot at the time the use on the original lot became conforming, if 1. The expanded use does not degrade the transportation level of service greater than the original use; 2. The expanded use does not adversely impact the use of neighboring property; 3. Any transfer of ownership on adjacent lots was made concurrently with the transfer of ownership of the lot on which the nonconforming use is locates as part of a single transaction; el 4. The expansion does not create additional development opportunities on adjacent lots that would not otherwise exist; and 5. The use is not a single-family residential use. Section 19.25.020(E) will be removed from the code in its entirety. The Commission came to a consensus regarding these changes. Chairman Johnson moved to recommend approval of CTA-2020-0003 including the changes to Section 19.25.010(4) regarding single-family residential structures, the addition of line item five in Chapter 19.25.020(D) and removing Chapter 19.25.020(E). There was no discussion. The vote on the motion was six in favor, zero against and the motion passed Chairman Johnson moved to take a ten-minute break. The vote on the motion was six in favor, zero against and the motion passed. b. Study Session: STV-2020-0001, A proposed street vacation of a portion of Desmet Court between Indiana and Flora Planner Connor Lange gave the Commission a presentation regarding STV-2020-0001, a privately initiated street vacation for a portion of Desmet Court. He explained that the City received the application on May 28, 2020 from Hanson Industries requesting to vacate 220 feet of Desmet Court. The proposed vacation in located between Indiana Avenue (west), Flora Road (east), I-90 (north) and adjacent to three parcels. The total area to be vacated is approximately 12,847 square feet. The proposed vacation will reduce the length of Desmet Court by 220 feet and dedicate a new cul-de-sac to serve the public. The reduced length of Desmet Court will reduce City maintenance costs of snow removal and repaving. The vacation will allow maximum use of abutting properties because parcels 45131.0507, 45131.0509 and 45131.0510 owned by Hanson Industries, which accounts for the majority of ownership along Desmet Court. Commissioner Beaulac asked about comments received from the utility companies. Mr. Lange answered that there are utilities Iocated in the border easement and rights -of -way. The applicant is aware they will have to pay to have all of these relocated to the new cul-de-sac. This will be a condition of approval for the street vacation. Commissioner Haneke expressed that his company is working on the construction on Desmet and he has been involved in discussions regarding possible future development. He asked if he needed to recuse himself from discussion on this matter. Chairman Johnson answered that he should recuse himself if he feels that his involvement in the project would cause him not to consider this matter equably and fairly. Commissioner Haneke responded that he feels he 4 08-13-2020 Planning Commission Minutes Page 5 of 5 can consider this matter fairly and equably but he did want to make sure that the Commission was aware of the possible conflict. X. GOOD OF THE ORDER: Commissioner Beaulac stated that he works for the US Census Bureau and encouraged everyone to send in their census reports and to be helpful to any of the Census agents. Commissioner Robinson thanked the staff and the Commission for all their work on these matters. XI. ADJOURNMENT: Commissioner Kelley moved to adjourn the meeting at 8:12 p. m. The vote on the motion was six in favor, zero against, and the motion passed. James Johnson, Chair Date signed Deanna Horton, Secretary 5 Regular Meeting Minutes Spokane Valley Planning Commission Council Chambers — City Hall August 27, 2020 I. Chair Johnson called the meeting to order at 6:00 p.m. The meeting was held remotely via ZOOM meeting. II. Commissioners, staff and audience stood for the pledge of allegiance. III. Administrative Assistant Taylor Dillard took roll and the following members and staff were present: Fred Beaulac Walt Haneke James Johnson Danielle Kaschmitter, absent Tim Kelley Bob McKinley Sherri Robinson Erik Lamb, Deputy City Attorney Jenny Nickerson, Building Official Lori Barlow, Senior Planner Connor Lange, Planner Taylor Dillard, Administrative Assistant Marianne Lemons, Office Assistant There was a consensus from the Planning Commission to excuse Commissioner Kaschmitter from the meeting. IV. AGENDA: Commissioner Robinson moved to approve the August 27, 2020 agenda as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. V. MINUTES: Commissioner Beaulac moved to approve the August 13, 2020 minutes as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. VI. COMMISSION REPORTS: Chair Johnson reported that he continues to attend the Human Rights Task Force meetings. VII. ADMINISTRATIVE REPORT: Building Official Jenny Nickerson stated that the Council Chamber windows of City Hall will be lit up with purple and gold lights to commemorate the 100th anniversary of "Women's Right To Vote." VIII, PUBLIC COMMENT: There was no public comment. IX. COMMISSION BUSINESS: 08-27-2420 Planning Commission Minutes Page 2 of 4 a. Findings Of Fact: CTA-2020-0003, Proposed Amendment To Spokane Valley Municipal Code (SVMC) Chapter 19.25, Nonconforming Uses and Structures Senior Planner Lori Barlow requested approval of the findings of fact from the meeting held on August I3, 2020 regarding the proposed amendment to the SVMC regarding nonconforming uses and structures. This document will formalize the Planning Commission's actions and the recommendation will be submitted to the City Council for approval. Chairman Johnson moved to approve the Findings of Fact as presented. There was no discussion. The vote on the motion was six in favor, zero against and the motion passed. b. Public Hearing: STV-2020-0001, A proposed street vacation of a portion of Desmet Court between Indiana and Flora Commissioner Haneke recused himself from this due to a conflict of interest as his company is involved in the project. He was placed in the Zoom waiting room for the duration of the agenda item. The public hearing was opened at 6:11 p.m. Planner Connor Lange gave the Commission a presentation regarding STV-2020-0001, a privately initiated street vacation for a portion of Desmet Court. He explained that the City received the application on May 28, 2020 from Hanson Industries requesting to vacate 220 feet of Desmet Court. A study session was held on this request on August 13, 2020. The proposed vacation is located between Indiana Avenue (west), Flora Road (east), I-90 (north) and adjacent to three parcels. The total area to be vacated is approximately 12,847 square feet. The proposed vacation will reduce the length of Desmet Court by 210 feet and dedicate a new cul-de-sac to serve the public. The reduced length of Desmet Court will reduce City maintenance costs of snow removal and repaving. The vacation proposal will not impact circulation of City streets because there is no right-of-way available for a future connection to Flora Road to the east. The vacation will allow maximum use of abutting properties because parcels 45131.0507, 45131.0509 and 45131.0510 are all owned by Hanson Industries. The public hearing meets all of the notification requirements: posted in three places, published in the Valley Herald twice, written notice sent out to abutting property owners immediately along Desmet Court and signs posted at each end of the proposed vacation area. The request meets all of the SVMC criteria of approval for a street vacation. The site contains utility improvements (cable, internet, sewer, gas, and power). The utility companies all provided comments addressing the existence of these utilities and requesting they be relocated to the new cul-de-sac at the time of dedication. Staff has informed the applicants that this work will have to be done at their expense. Planner Connor expressed that staff recommends approval of this request subject to conditions I 11 outlined in pages five and six of the staff report. Chairman Johnson asked about compensation from the developers. Planner Lange responded that there has not been any conversation about compensation but staffs determination would be not to request such since the developers are required to dedicate a new cul-de-sac. Chair Johnson asked if anyone from the public wished to testify. 2 08-27-2020 Planning Commission Minutes Page 3 of 4 Todd Whipple, Whipple Consulting Engineers: Mr. Whipple commented that the property is going to be purchased by Lance Douglass who owns the apartment project under construction to the north of the property. He plans to build additional apartments on these parcels. Mr. Whipple also mentioned that all of this basin drains into the large pond on the property. During discussions with Chad Riggs in Development Engineering, it was determined that the size of the pond could be reduced based on new standards that are in place. He requested that the Planning Commission recommend approval of the street vacation to City Council. Commissioner Robinson asked for clarification regarding reducing the pond size. Mr. Whipple responded that when this project was originally created, the guidelines for stormwater management required ponds to be 40% bigger than they needed to be. Those guidelines have now been adjusted and the changes allow for more developed land area. The public hearing was closed at 6:28 p. rn. Chairman Johnson moved to recommend approval of the proposed street vacation for Desmet Court to the City Council subject to staff conditions. There was no discussion. The vote on the motion was five in favor, zero against and the motion passed. Commissioner Haneke rejoined the meeting. C. Study Session: CTA-2019-0005, A proposed amendment to Title 20, Subdivisions Planner Connor Lange gave a staff presentation. He explained that the Revised Code of Washington (RCW) 58.17 provides the state requirements for subdivisions and Title 20 of the SVMC provides the local standards for processing subdivisions. Local jurisdictions can incorporate their own additional processes regarding short subdivisions (9 or fewer lots) but state law outlines the regulations regarding long subdivisions (10 or more lots). Changes have been made to the RCW in recent years and the City needs to update their code to reflect those changes and requirements. Planner Lange outlined the current processes for short/long subdivisions and preliminary/final plat alternations. He also explained scenarios an applicant might need to do a plat alteration. Commissioner Haneke asked about the regulations regarding bonding of projects. Planner Lange answered that the City doesn't generally enter into performance bonds for completion of a project. The City requires all improvements to be completed prior to recording of final plats. But the City does utilize warranty bonds for projects that have been completed and are in the warranty stage. Deputy City Attorney Lamb clarified that the City's street standards outline when a performance bond can be used. Planner Lange explained general design requirements and criteria staff uses when analyzing proposed plats that are submitted. This includes the design, shape, size, and orientation of the lots, lot arrangement, block dimensions, access, adequate public domestic water supply, stormwater run-off and utility easements. He explained that a formal study session will be held at the next Planning Commission meeting that will outline all proposed code text language. 3 08-27-2020 Planning Commission Minutes Page 4 of 4 X. GOOD OF THE ORDER: Commissioner McKinley, Beaulac, and Robinson all thanked the staff for a well-done presentation. Commissioner Kelley expressed frustration with the lack of adherence to Robert's Rules of Order during previous Planning Commission meetings. M. ADJOURNMENT: Commissioner Haneke moved to adjourn the meeting at 7:15 p.m. The vote on the motion was six in favor, zero against, and the motion passed. James Johnson, Chair Date signed Deanna Horton, Secretary 4 Spokane do Va11ey% COMMUNITY AND PUBLIC WORKS BUILDING & PLANNING STAFF REPORT AND RECOMMENDATION TO THE PLANNING COMMISSION CTA-2020-0003 STAFF REPORT DATE: August 4, 2020 HEARING DATE AND LOCATION: August 13, beginning at 6:00 p.m.; Due to the restrictions on public gatherings arising from the covid-19 outbreak, and pursuant to Governor Inslee's Stay Home, Stay Healthy Proclamation (No. 20-25) and Proclamation 20-28 (and associated extensions), this hearing will be conducted remotely using web and telephone conference tools. A link to the Zoom meeting will be provided on the agenda and posted to the City's webpage: www.spokanevalley.org/planningcormission. Proposal Description: A city -initiated code text amendment (CTA) to chapter 19.25 of the Spokane Valley Municipal Code (SVMC) to prohibit the expansion of a nonconforming use onto adjacent lots, determine residential uses located in nonresidential zones are permitted uses, and other housekeeping items. APPROVAL CRITERIA: Spokane Valley Comprehensive Plan, SVMC 17.80.150, 19.30.040. SUMMARY OF CONCLUSIONS: Staff concludes that the proposed amendments to chapter 19.25 SVMC is consistent with the minimum criteria for review and approval, and consistent with the goals and policies of the Comprehensive Plan. STAFF CONTACT: Lori Barlow, AICP, Senior Planner. REVIEWED BY: Jenny Nickerson, Building Official. ATTACI MENTS: Exhibit 1: Proposed Amendment APPLICATION PROCESSING: Chapter 17.80 SVMC, Permit Processing Procedures. The following table summarizes the procedural steps for the proposal. Process Date Department of Commerce 60-day Notice of Intent to Adopt Amendment July 21, 2020 SEPA —DNS Issued. July 24, 2020 Published Notice of Public Hearing: July 24 and 31, 2020 Background: Chapter 19.25 SVMC regulates nonconforming uses and structures. Appendix A Definitions of the SVMC defines a nonconforming use as, "A lot, use, building, or structure, which was legal when commenced or built, but which does not conform to subsequently enacted or amended regulations pursuant to Chapter 19.25 SVMC." Chapter 19.25 SVMC defines what is considered a legal nonconforming use or structure, then provides conditions for how a legal nonconforming use may continue and be expanded. Generally, if a use or structure was legally Staff Report and. Recommendation CTA-2020-0003 permitted under the applicable regulations at the time the use or structure came into existence and began lawful operations, the use or structure is considered a legal nonconforming use if the current regulations and amendments to regulations otherwise prohibit such use. See SVMC 19.25.010. Legal nonconforming uses are allowed to continue as is until the use is discontinued or abandoned for a period of 12 consecutive months. See SVMC 19.25.020. The City's nonconforming use regulations were adopted in 2007 by Ordinance No. 07-015 and modified by Ordinance Nos. 09-036, 10-016, and 10-023. Ordinance No. 16-018 repealed the development regulations as part of the 2016 Legislative Update and adopted updated titles, which included chapter 19.25 SVMC, although no substantial substantive changes were made at that time. The chapter was further modified by Ord. 17-004 with housekeeping items. The primary amendments occurred in Ordinance No. 10-016 in 2010, by allowing nonconforming uses to expand onto properties outside of the original boundaries of the use if certain criteria were met. However, allowing nonconforming uses to expand circumvents the intent of the comprehensive plan and zoning as the use becomes more invested at that location, rather than discontinuing the use, and moving to an appropriately zoned location. CTA 2020-0003 proposes to remove the criteria which allows for expansion outside of the original property boundaries, but allow expansion on site, subject to criteria. The language proposed rolls back the criteria and returns the development regulations to that language previously implemented prior to Ordinance No. 10-016. During the 2016 Legislative Update, minor changes were made in chapter 19.25 SVMC that provided that a residential use in a nonresidential zone was a legal nonconforming use. Previously, the language provided that residential uses in nonresidential zones "shall not be deemed nonconforming and shall be permitted as a legal use." The implication of the change to those residential uses is that if they are damaged by fire, flood, or neglect, and the damage represents more than 80% of market value of the structure, they may not be rebuilt. This has created a financing issue for affected single family homes. The language proposed returns the language to the previous verbiage and identifies the residential use as a permitted use not subject to the nonconforming use regulations. ANALYSIS: Currently legal nonconforming uses are allowed to continue indefinitely so long as operations are not abandoned or discontinued for more than 12 months, may be replaced with a conforming use or another nonconforming use and expanded onto adjacent lots, if certain criteria are met subject to the criteria in SVMC 19.25.020. Additionally, legally established single-family residential uses located in a nonresidential zone are subject to the regulations of chapter 19.25 SVMC. The proposed amendment: 1. Prohibits the expansion of a legal nonconforming use onto adjacent properties to protect the interests of property owners within the immediate area consistent with the zoning district. As noted above legal nonconforming uses are allowed to continue, be replaced by another nonconforming use, and even expand onto adjacent lots if several criteria are met. The purpose of nonconforming use regulations is generally to create a regulatory framework to allow a nonconforming use to continue operations with the intention that at some point the use will transition to a conforming use after the nonconforming use ceases. The Comprehensive Plan land use designation is the guide for future development, and over time it anticipates that the use will conform to the Plan. However, because the regulations allow for expansion on site, on adjacent lots, and the ability of a nonconforming use to transition to a different nonconforming use, it has been found that the nonconforming uses are not transitioning to appropriate zones, but growing and changing operations in those locations. The byproduct of these regulations has been continued investment in the sites, making it less likely that the use will transition to a conforming Page 2 of 5 Staff Report and Recommendation CTA-2020-0003 use consistent with the comprehensive plan, and encroachment of an incompatible use into adjacent areas. The City can cite two examples. The first example is the Hite Crane example. The previous use of the Hite Crane properties appears to have been a fence company with a contractors yard for product, vehicle and equipment storage. The business was operating on two parcels in an area zoned Corridor Mixed Use (CMU). Surrounding land uses included the Greenacres Middle School, single family uses and an older manufactured home park. CMU allows a range of commercial, limited light industrial uses, and residential uses. The fence company was nonconforming. The Hite Crane business purchased the two lots of the former fence company after it was determined to meet the criteria that would allow a different nonconforming use to begin operations, and then allowed to expand operations to the adjacent lot following the purchase. Pursuant to SVMC 19.20.015(F) the CMU allows for light manufacturing, retail, multifamily, and offices along major transportation corridors and provides that adjacent residential zones are protected through transitional standards. Although the CMU zoning district requires transitional regulations to offset the impacts of higher intensity uses on less intensive uses, they attempt to use setbacks and vegetation to create a buffer between the uses and preserve privacy. The standards cannot fully mitigate the impacts of fumes and noises from trucks and equipment. or noise from employees or customers and industrial vehicle traffic that affect the reasonable enjoyment of adjacent properties. The investment of the expansion decreases the likelihood that the nonconforming use will transition to a nonconforming use and increases the incompatibility with the existing land uses that are consistent with the intent of the comprehensive plan. The second example involves property located at 11323 S. Dishtnan Mica Road. In 2014 the property owner requested a Nonconforming Use Determination (ADI-2014-0001) to allow recreational marijuana processing as a nonconforming use to replace the Industrial Supply and Rigging business that previously existed on the site as a nonconforming use. The decision determined that marij uana processing would be allowed to replace the existing nonconforming use at that location with the stipulation that processing would be limited to cutting and bagging marijuana. In 2017 a second determination was requested (ADI-2017-0001) to determine if the nonconforming use rights of the property would include marijuana growing and carbon dioxide processing, in addition to the marij uana processing currently allowed. The request was denied. While the example doesn't speak to an expansion of the use to adjacent properties, it does identify how a nonconforming use is replaced by a new nonconforming use, and how the use continues to grow outside of the intent of the zoning district. At the time the initial determination was made, the carbon dioxide processing was not the typical form of processing. Over time, carbon dioxide processing became a more typical method, and as a result the business owner requested to expand the use. It was determined that several public safety risks were associated with that type of processing, and that the growing operation may also present issues not anticipated by the code. As a result the request was denied, and the nonconforming use was limited by the decision of AD1-2014-0001. The example highlights how original nonconforming properties can evolve into new nonconforming uses, how the changing land use trends are absorbed into the community, and how continued investment in the property continues the likelihood of future nonconforming uses that are inconsistent with the Comprehensive Plan. Based on the current code, the regulations would allow a request to expand to adjacent properties, and if the criteria were met, the request would be approval. Page 3 of 5 Staff Report and Recommendation CTA-2020-0003 2. Determines legal nonconfonning single family residential uses in nonresidential zones to be permitted uses and not subject to the chapter 19.25 SVMC Nonconforming use regulations. The amendment recognizes that residential uses exist within the RC, IMU and I zones. The amendment recognizes that until the market determines that the value of those existing residences is great enough to warrant the redevelopment costs of the property that the residential uses Zvi 11 remain. At this point, adequate available land exists to provide for commercial and industrial uses that may not support the redevelopment of the land, and as a result it is anticipated that those nonconforming pockets of residential development will continue as residential. Until the market changes, the regulations create an unnecessary burden on the property owners that affects their ability to sell or refinance the property. The primary issue impacting the property stems from the regulation that restricts the rebuilding of the property if it is damaged to an extent that is greater than 80% of the market value of the property. This creates uncertainty for financial lenders knowing that damages could determine if the use could be rebuilt or continue as residential. It additionally creates a situation where the property could remain vacant subsequent to damages if a residence could not be rebuilt, and the market is not ready to absorb the cost of redeveloping other immediate residential properties in order to aggregate an adequately sized parcel. The purpose of the amendment is to establish a stable regulatory framework allowing nonconforming residential uses to continue until the market supports the redevelopment of the residential property. Between the study session and public hearing, staff identified a minor change to clarify that while such uses are allowed to allow rebuilding damaged homes, further subdivision of the land is not allowed since it further expands and amplifies the nonconformity of the use. A. FINDINGS AND CONCLUSIONS SPECIFIC TO THE MUNICIPAL CODE TEXT AMENDMENT 1. Compliance with Title 17 (General Provisions) of the Spokane Valley Municipal Code Findings: SVMC 17.80.150(F) Municipal Code Text Amendment Approval Criteria The City may approve a Municipal Code Text amendment if it finds that: i. The proposed text amendment is consistent with the applicable provisions of the Comprehensive Plan: Staff Analysis: The proposed amendment is supported by the Comprehensive Plan and is consistent with the following Comprehensive goals and policies: LU-G1 Maintain and enhance the character and quality of life in Spokane Valley. LU-P5 Ensure compatibility between adjacent residential and commercial or industrial uses LU-P7 Protect residential neighborhoods from incompatible land uses and adverse impacts associated with transportation corridors. ED-G3 Balance economic development with community development priorities and fiscal sustainability. T-G2 Ensure that transportation planning efforts reflect anticipated land use patterns and support identified growth opportunities. Page 4 of 5 Staff Report and Recommendation CTA-2020-0003 T-P2 Consider neighborhood traffic and livability conditions and address potential adverse impacts of public and private projects during the planning, designing, permitting, and construction phases. ii. The proposed amendment bears a substantial relation to public health, safety, welfare, and protection of the environment: Staff Analysis: The proposed amendment bears substantial relation to public health, safety, welfare and protection of the environment. Allowing nonconforming uses to operate and expand onsite protects the interests of the property owners and the investments made; restricting the expansion to those properties on site ensures that future growth is consistent with the comprehensive plan and protects the interest of the surrounding properties. The proposed amendment recognizes that nonconforming residential uses may be the best use of the property until the market supports the redevelopment of the property to either a commercial or industrial use and establishes a stable framework for the residential property owner to address the concerns of financial lenders. b. Conclusion(s): The proposed text amendment is consistent with the approval criteria contained in the SVMC 17.80.150(F). 2. Finding and Conclusions Specific to Public Comments a. Findings: No public comments have been received to date. b. Conclusion(s): Adequate public noticing was conducted for CTA-2020-0003 pursuant to adopted public noticing procedures. 3. Finding and Conclusions Specific to Agency Comments a. Findings: The City has not received any agency comments to date. b. Conclusion(s): No concerns noted. B. CONCLUSION For the reasons set forth in Section A the proposed code text amendment to prohibit the expansion of legal nonconforming uses onto adjacent properties, determine that legally permitted residential uses located in nonresidential zones are permitted uses, and other housekeeping items is consistent with the requirements of SVMC 17.80.150(F) and the Comprehensive Plan. Page 5 of 5 Exitibit 1 Draft Draft Chapter 19.25 NONCONFORMING USES AND STRUCTURES Sections: 19.25.010 Applicability. 19.25.020 Continuing lawful use of property. 19.25,030 Nonconforming structures. 19.25.040 Completion of permanent structures. 19.25.010 Applicability. A. Legal nonconforming uses and structures include: 1. Any use which does not conform with the present regulations of the zoning district in which it is located that was in existence and in continuous and lawful operation prior to the adoption of SVMC Title 19; 2. Any permanent structure in existence and lawfully constructed at the time of any amendment to SVMC Title 19, which by such amendment is placed in a zoning district wherein it is not otherwise permitted and has since been in regular and continuous use; 3. Any permanent structure lawfully used or constructed that was in existence at the time of annexation into the City and which has since been in regular and continuous use; 4. Existing legally established single-family residential uoesstructures located in a nonresidential zoning district shall not be deemed nonconforming and shall be permitted as a legal osestructure. B. Structures or uses deemed nonconforming only pursuant to the SMA (Chapter 90.58 RCW) and the City SMF (Chapter 21.50 SVMC, Shoreline Regulations) shall comply with the provisions of SVMC 21.50.160. (Ord. 16-018 § 6 (Att. 13), 2016), 19.25.020 Continuing lawful use of property. A. "I'he lawful use of land at the time of passage of SVMC Title 19, or any amendments hereto, may be continued, unless the use is discontinued or abandoned for a period of 12 consecutive months; except that any nonconforming use discontinued as a result of foreclosure or judicial proceedings, including probate, shall be permitted to continue for a period not to exceed 24 months. The right to continue the nonconforming use shall transfer to all successive interests in the property. Discontinuance of a nonconforming use shall commence on the actual act or date of discontinuance. B. A nonconforming use that is abandoned or discontinued shall not be replaced with another nonconforming use. C, A nonconforming use which has not been abandoned or discontinued may be replaced with a conforming use or another nonconforming use when the use meets the following criteria: 1. The new use is not less conforming than the prior use. This determination shall be made by the city manager or designee; 2. The proposed use does not place a greater demand on transportation and other public facilities than the original use; and 3. The proposed use does not adversely impact the use of neighboring property. D. A nonconforming use in residential zones -may be expanded only within the boundaries of the original lot and any adjacent lot having the same ownership as the lot at the time the use on the original lot became nonconforming, if: 1. The expanded use does not degrade the transportation level of service greater than the original use; 2. The expanded use does not adversely impact the use of neighboring property; CTA-2020-0003 Page 1 July 13, 2020 Drag 3. Any transfer of ownership on adjacent lots was made concurrently with the transfer of ownership of the lot on which the nonconforming use is located as part of a single transaction; and 4. The expansion does not create additional development opportunities on adjacent lots that would not otherwise exist. E.,4- oneonfo ring idcn ia1 district may be expanded-ouly within the boundaries ofthc original lot and any lot adjacent to the original lot, if: 1. The original lot and the ''expansion" lot arc in the same zoning district; 2. The expanded use does not degrade the transportation level of service greater than the original use; and Thy expanded use doc.a not adversely impact the use of ncighborine properly. F. Residential lots made nonconforming relative to dimensional requirements shall be deemed conforming if the use is allowed in the respective zoning district. G. Nonconforming uses that do not provide the required number of off-street parking spaces pursuant to current standards shall not be required to meet parking standards, H. Any nonconforming use damaged by fire, flood, neglect, or act of nature may be replaced if: 1. Restoration of the use is initiated within 12 months; and 2. The damage represents less than 80 percent of market value. 1. Any nonconforming use changed to a conforming use shall not be permitted to convert to a nonconforming use. (Ord. 17-004 § 3, 2017; Ord. 16-018 § 6 (Att. B), 2016). 19.25.030 Nonconforming structures. A nonconforming structure may be expanded in accordance with the following: A. The expansion or alteration does not change the occupancy classification under adopted building codes; B. The expansion or alteration does not create additional nonconformity with respect to building setbacks or lot coverage; additions to nonconforming structures shall meet setbacks required within the zoning district; C. The number of dwelling units does not increase so as to exceed the number of dwelling units permitted within current regulations; D. Off-street loading and/or parking, stormwater facilities, and landscaping shall be provided for the alteration or expansion in accordance with Chapter 22.50 SVMC; and E. Nonconforming structures damaged by fire, flood, neglect, or act of nature may be replaced if: 1. Restoration of the structure is initiated within 12 months; and 2. The damage represents less than 80 percent of market value of the structure. (Ord. 16-018 § 6 (Att. B), 2016). 19.25.040 Completion of permanent structures. Compliance with Chapter 19.25 SVMC shall not require changes to the plans, construction, or designated use of a structure for which: A. A building permit has been issued or a site plan approved by the City or county prior to incorporation of the City or the effective date of SVMC Title 19; or CTA-2020-0003 Page 2 July 13, 2020 Draft B. A substantially complete application for a building permit was accepted by the building official on or before the effective date of the SVMC Title 19; provided, that the building permit shall comply with all applicable regulations on the date that the application was filed and the building permit is issued within 180 days of the effective date of Chapter 19.25 SVMC. (Ord. 16-018 § 6 (Att. B), 2016). CIA-2020-0003 Page 3 July 13, 2020 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 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: Administrative Report — INFRA FY 20 — Grant Application Debrief GOVERNING LEGISLATION: RCW 35.77.010: Six -Year Transportation Improvement Program PREVIOUS COUNCIL ACTION TAKEN: • February 4, 2020: City Council authorized the City Manager to submit a funding application to the US Department of Transportation's (USDOT) call for projects for the Infrastructure for Rebuilding America (INFRA) FY 20 discretionary grant program. The submitted project application was a joint application between Spokane County and the City for the Bigelow - Sullivan Corridor Freight Mobility and Safety Project. • January 21, 2020: City Council authorized the City Manager to enter into a Memorandum of Understanding with Spokane County for a consultant contract to prepare and submit an INFRA application for the Sullivan Road and Bigelow Gulch/Forker Road Improvements. • January 29, 2019: Staff discussed with City Council potential project applications for INFRA FY 19, including the Pines Road/BNSF Grade Separation Project and a joint application with Spokane County for Sullivan Road and Bigelow Gulch/Forker Road Corridor of Projects. BACKGROUND: On June 18, 2020, USDOT announced funding awards for the INFRA FY20 grant program and the City's application was not selected for funding. The City's "small project" application requested the remaining costs of the County's Bigelow-Gulch/Forker Road project and the City's reconstruction of the Sullivan Road/SR 290 interchange. The following summarizes program applications and awards: General INFRA Information: - $906 million total award dollars o 90% for "Large" Projects with a total cost greater than $100 million ■ 77 large project applications received ■ 14 "large" awards were made O 10% for "Small" Projects with a total cost less than $100 million ■ 96 small project applications received ■ 6 "small" awards were made - Small Project Applications: O 96 total small project applications were submitted requesting $1.7 billion O 6 projects were awarded totaling $90.6 million ■ Typical small project awards were around $10-15 million ■ One small project award was $34.5 million, which was unofficially one of the biggest dollar -value awards for the "Small projects" category. o Spokane Valley was a "Small" project application requesting $33 million and provided approximately a 50/50 match on the $66 million total project cost. - Applications were routed through the following general process and scored against the merit criteria outlined in the Notice of Funding Opportunity: o Applications were received and categorized o Technical review — These teams reviewed only specific elements from each application, then passed the application to the next technical review team who reviewed their unique section, and so on. Once all technical reviews were scored, applications were passed to the Senior Review Team. o Senior Review Team Evaluation — reviewed the technical evaluation scores and the project as a whole. This review included geographic diversity, among other high- level considerations. o Secretary's Desk for consideration (of 96 total small project applications, 45 were recommended to the Secretary for consideration) o Proposed Secretary's Award List to Congress (20 awarded projects, 6 of which were Small projects) Bigelow -Sullivan Project Application Details 1. Scoring Criteria: Benefit Cost Ratio (BCR) where a higher number is better. o BCR < 1.0 — 50 small projects in this category (6 others did not submit a BCR) O 1.0 < BCR < 1.5 — 16 small projects in this category O 1.5 < BCR < 3.0 — 19 small projects in this category, including our application ■ City's application had BCR=1.7. USDOT generally agreed with this and confirmed our value. There were some nuances in our assumptions that USDOT disagreed with but nothing extreme. This is good, but not good enough for a competitive application field. o BCR > 3.0 — 5 small projects submitted fell in this category 2. Scoring Criteria: Leveraging Federal Funds (i.e. Non-federal match) o Rating is a scale of 1 — 5, with 1 being the worst and 5 being the best. o Minimum non-federal match was 20% o Our 36.7% non-federal match rated "2" and was not competitive 3. Innovation - We scored "HIGH" in this field. Available scores were Low, Medium, and High. o Considers three areas: Innovative Technology, Delivery, and Financing. o We scored well for technology (ITS components) and Delivery O 43 other applications scored "high" 4. Performance & Accountability — We scored "HIGH" in this field. Available scores were Low, Medium, and High. o Considered life cycle costs and agency accountability measures where we agreed to up to 10% penalties if we missed certain milestones. O 23 other applications scored "high" o Unofficially, about half of the applications did NOT agree to potential 10% penalties for missed milestones 5. Risk Assessment Ratings — Project Readiness & Risk related items o Project received a "HIGH" risk rating due to the following: ■ Multi -agency ownership challenges (City, County, WSDOT, BNSF) ■ Varying levels of NEPA completion ■ ROW procurement risks (FHWA recognized potential condemnation risks) ■ BNSF Coordination risks OPTIONS: Discussion only. RECOMMENDED ACTION OR MOTION: N/A BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Adam Jackson, PE — Planning & Grants Engineer ATTACHMENTS: N/A CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 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: Administrative Report —Pavement Preservation Surface Treatments GOVERNING LEGISLATION: RCW 35A.11.020 — Powers vested in legislative bodies of noncharter and charter code cities. PREVIOUS COUNCIL ACTION TAKEN: The topics of street operations and maintenance, pavement preservation, and associated funding mechanisms, have been discussed with Council since shortly after the City's incorporation. This Pavement Management Program (PMP) topic has been before Council at least 48 times. Date Meeting Type Presentation Type Subject/Activity • 10/12/2004 • 10/12/2004 • 10/26/2004 • 11/02/2004 Regular Regular Regular Study Session • 11/09/2004 Regular • 11/16/2004 Study Session • 12/07/2004 Study Session • 01/11/2005 Regular • 04/05/2005 Study Session Administrative Report Informational Item Pending Legislation Pending Legislation Pending Legislation Informational Item Pending Legislation Administrative Report Informational Item • 06/11/2005 Workshop Informational Item • 12/20/2005 Study Session Informational Item • 02/11/2006 Workshop • 10/10/2006 Regular Informational Item Informational Item Budget Discussion: Street Fund Utility Tax Scenarios First Reading: Proposed Utility Tax Ordinance Public Comment: Proposed Utility Tax Ordinance First Reading: Proposed Utility Tax Ordinance Update on Utility Tax Data First Reading: Proposed Utility Tax Ordinance Utility Tax Report Pavement Management and Associated Policy Issues Review of Budget Goals Draft Scope of Work for Street Masterplan and Related Activities Review Budget Goals: Draft a well-defined Street Master Plan, with Funding Options Motion Consideration: Amendment to JUB Contract for Street MasterPlan for Street • 12/19/2006 • 01/27/2007 • 06/02/2007 • 07/17/2007 • 10/16/2007 • 07/22/2008 Study Session Workshop Workshop Study Session Study Session Regular • 08/12/2008 Regular • 01/20/2009 Study Session • 08/17/2010 Study Session • 08/17/2010 Study Session • 12/27/2011 Regular • 02/07/2012 Workshop • 03/20/2012 Study Session • 03/27/2012 Regular • 03/27/2012 Regular • 04/10/2012 Regular • 06/12/2012 Special • 12/17/2013 Study Session • 03/15/2016 Workshop • 06/14/2016 Workshop • 11/01/2016 Study Session • 11/08/2016 Regular • 12/06/2016 Special • 02/14/2017 Workshop Informational Item Informational Item Informational Item Administrative Report Administrative Report Pending Legislation Development Standards Street MasterPlan Update Adopt a street master plan Summer Retreat- No specific topic Draft Street Master Plan Presentation Street Masterplan First Reading of Proposed Ordinance 08-014 Telephone Tax Motion Consideration Second Reading of Proposed Ordinance 08- 014 Telephone Tax Informational Item Informational Item Informational Item Informational Item Informational Item Administrative Report Administrative Report Motion Consideration Motion Consideration Informational Item Administrative Report Informational Item J-U-B Street Master Plan Update Street Preservation Program City Transportation Benefit District Street Preservation (Info only) Street Preservation Funding Options Pavement Management Plan Funding Options, Pavement Management Pavement Management Plan Update for 2011 PMP-One-time General Fund transfer Public Works Pavement Management Plan Update Planning for sustained funding of PMP beyond 2020 Informational Item Transportation & Infrastructure Issues Administrative Report Transportation and Infrastructure Funding - Utility Taxes Public Hearing Special Meeting Informational Item Transportation and Infrastructure Funding - Utility Taxes Transportation and Infrastructure Funding - Utility Tax Proposal Street O&M, Pavement Preservation and Street Construction • 01/9/2018 Regular • 01/30/2018 Study Session • 02/13/2018 Workshop • 05/29/2018 Study Session • 06/12/2018 • 07/10/2018 • 04/2/2019 • 6/18/2019 • 10/1/2019 • 10/29/2019 • 05/26/2020 Workshop Regular Study Session Study Session Study Session Study Session Regular Administrative Report Motion Consideration Informational Item Administrative Report Informational Item Administrative Report Administrative Report Administrative Report Administrative Report Administrative Report Administrative Report Solid Waste Collection Street -Wear Fee Waste Management Contract Amendment, Street -Wear Fee Street O&M, Pavement Preservation and Street Construction Street O&M Fund #101 - Level of Service/Financial Challenges Street Operations & Maintenance Fund Telephone Utility Tax Pavement Preservation Pavement Management Ad -Hoc Commission History of Pavement Management Program Discuss formation of Ad -Hoc Committee Pavement Preservation Program Update • Since 2011, Council has approved annual budgetary General Fund transfers to the Pavement Preservation Fund. Between 2011 and 2020 these transfers total approximately $10 million. BACKGROUND: Pavement management principles generally focus on maximizing funds by extending the life of a street network by keeping "good" roads in "good" condition. Why do this? The cost to "fix" a "good" road is relatively inexpensive when compared to the cost to "fix" a "bad" road. Practically speaking, "bad" roads don't get much worse over time. However, if a "good" road is left to deteriorate over time, it too will turn into a "bad" road. A few points to keep in mind as we think about how this principle applies to Spokane Valley: • First: Since 2011, the City has spent an average of $6 million annually on the preservation of its paved street network. These contributions are predominately a combination of various City funds and state or federal grant funds. In order to keep today's paved street condition from worsening, it is recommended that the City spend $10 million annually. The resulting $4 million deficit ($10 million - $6 million = $4 million) is expected to increase due to steadily declining revenues in Street Fund #101, which relies on telephone utility and gas tax revenue. • Second: In 2018, the City amended its waste collection contract with Waste Management and created the Street Wear Fee, generating approximately $1.5 million annually for street improvements to our local access, neighborhood streets. In 2019 and 2020, the City completed its first two neighborhood street projects with revenue generated by the Street Wear Fee, the Midilome and Barker Road mobile homes neig hborhoods. One of the most cost-effective ways to keep "good" roads in "good" condition is to use surface treatments. Surface treatments are low -impact, low-cost preservation measures that are applied on top of the existing paved streets in order to extend the life of the pavement. This treatment seals the surface of the street, protecting it from the weather and adding a wearing -layer of durability to withstand traffic. Surface treatments can extend the life of "good" local, neighborhood streets at a fraction of the cost to reconstruct failed local streets. Staff will discuss the options for surface treatments and will solicit feedback from Council on this topic. OPTIONS: Discussion Only. RECOMMENDED ACTION OR MOTION: None BUDGET/FINANCIAL IMPACTS: Funding for local street pavement management is primarily supported by the existing Street Wear Fee (Fund 106). STAFF CONTACT: Adam Jackson, Engineer — Planning & Grants Engineer ATTACHMENTS: PowerPoint Presentation Stretching Our Dollars by Preserving Local Streets Spokane ��Valley October 6, 2020 Adam Jackson, PE Pavement Management Program Coordinator Let's Take a Road Trip... Our Pavement Management Program (PMP) History Conditions & Funding Pavement Toolbox Surface Treatments Expectations Next Steps Spokane _ . Valley 2 SV's Pavement's History Highway Spokane Val ley 2004 Proposed Utility Tax discussion does not move forward 2006/2007 City conducts its 1st PMP Street Master Plan 2008 Telephone Utility Tax Approved and Effective in 2009 2011 Fund #311 Created 2012 $2.0 Million of General Fund surplus used for Preservation Projects 2018 Solid Waste Collection Fee 2013 Civic Facility Replacement Fund #123 transfers $2.3 Million into Fund #311 over 4 years 2014 Council sets goal for a sustainable PMP (recurring thru 2019) 2016 Proposed Utility Tax discussion does not move forward 2019 2020 Going Forward: 3rd Party PMP Review 2019 condition survey Outreach, Identify results, action items, Targets & Methods New survey contract & improvements g 3 Current Street Conditions Spokane Val ley Pavement Condition Index (PCI) Score: 76 A Citywide Average of Highs and Lows Locals Streets: Lowest PCI, Highest % of Streets Annual Cost to Maintain Existing PCI: $10 Million Street Length by Functional Class (451 Total Centerline Miles) Local 351 miles 78% Collector 44 miles 10% -qillIllIllkw Minor Arterial 37 miles 8°% Principal Arterial 19 miles 4% 84 82 80 78 76 74 72 70 Local 75 PCI by Functional Class Principal Arterial 82 Collector 76 Minor Arterial 78 4 Current Street Funding Spokane Va11ey Based on Historical Annual Expenditures: Est. Cost to Maintain PCI Avg. Actual PMP Expenditures Avg. Annual PMP Deficit Street Length by Functional Class Collector 44 miles 10% Minor Arterial 37 miles 8% Principal Arterial 19 miles 4% $ 10,000,000 General Fund transfers 6,000,000* $1.86 Million to Street Fund in 2021 to cover ($ 4,000,000) deficit spending Total Cost to Fix Everything Today Collector $6,927,733 8% Annual PMP Expenditures by Functional Class Minor Arterial $10,030,245 12% Principal Arterial $ 6,062, 317 7% Local $1,700,000 * 28% Arterials & Collectors $4,300,000 72% *Assumes $200,000/year of Street Fund #101 goes to Local Streets 5 Pavement Quality Preserving Local Streets Spokane .000 Valley • How to Maximize Local Dollars Preventative Maintenance & Surface Treatments A. 40%of pavement life Excellent Very Good Good Fair Poor Very Poor Pavement Quality $1 spent now Costs $8 if delayed I has a 15% drop in quality 15% of pavement life has a 40 % drop in quality hr PQfo cures r�"an�e Time Pavement Life Cycle Curve Target Zone for Pavement Rehabtt!tation Increased Pavement Life • On -rehabilitated Pavement Performance Time 160 140 a, 120 0 tz 100 N CC ✓ - 80 2 0.1 ▪ 60 In tD U 0 J 40 20 0 Local Streets: Repair Types by Miles and Costs Length (mi) Cost to Repair 129 iles 8 144 Iles $29,453,357 4 $45,164,806 $6,129,805 6 miles Defer Preventative Surface Rehabilitation Reconstruction Maintenance Maintenance Treatment $ 50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $ 5,000,000 $0 Local Street Costs by Repair Type 6 Pavement Management Tool Box Methods for Maintaining Our Streets Preventative Maintenance Spot Repair, Patching, Crack Seal Surface Treatments Most Effective on Locals & Some Collectors Rehabilitation Grind/Replace Street Surface Reconstruction Remove/Replace Street Spokane _ . Valley Timberlane (South of 17t")• Surface Treatments Explained Spokane 1'� Valley Slows Street Aging = Longer Life = Save Money Easy to Implement New Wearing Surface for Traffic Protects the Street Against: Weathering Surface Cracking PREVENTS POTHOLES $20-40/SY Rehabs & Rebuilds Spreads More Dollars Across More Streets $5-10/SY Surface Treatments Ella (North of Broadway) Surface Treatments Options $3-$6 • Sunscreens and Moisturizers Fog Seals Rejuvenators $10-$15 Padded Layers = Extra Protection Chip Seals Slurry Seals Microsurfacing Full Body Armor Double Chip Seals Combo Seals (from above) Thin Overlays Spokane .„00Val ley Surface Treatments City Of Spokane SOOlie\-- .000 Valley Crack Sealing + 1/4" Chip Seal + Secondary Fog Seal Minimal impact to neighborhoods after 1 season Residential Roads Only Public Bid, Contractor Built 07/2019 Existing Conditions: Note patched areas before chip 09/2019: Rock Pressed seal project. Also note cracked asphalt outside of patch limits. into Emulsion 09/2020: 1 Year Later (Crack sealing occurred before chip seal application) 10 Spoke\ -- Surface Treatments —Spokane County Valley 3/8" Chip Seal with Secondary Fog Seal Larger Rock than City of Spokane, Lasts Longer Urban Arterial/Collector Roads get Fog Seal Wellesley (West of City Limit) (2019) Carnahan (South of City Limit) (2018) Work Performed by County Crews Chip Seal Inter -Local Agreements Available 2019 Sample Board: 3/8" Chip Seal with and without Secondary Fog Seal Application 2018 County Project: 3/8" Chip Seal with Secondary Fog Seal (Photo: 1 Year Later, 2019) Carnahan (South City Limit) 11 Surface Treatment Options Chip Seal Use & Applicability July -August Construction Preferred Local Resources, Local Contractors Chip Seals are Not New to Our Area Historical City Council talking points Chip Seals: to use or not to use... Managing Expectations Fog Seal Sweep "Shedding" of chips, but the surface is still sealed Cul-de-sacs and Chip Seals Do Not Mix It's Difficult to Please Everyone Spokane _ . Valley Moore (South of Wellesley Surface Treatments Spokane Valley >alley• Overlays: If budget allows, 2-3 blocks of overlay each year Can be in either commercial or residential areas Occasional Chip Seal Project Not regularly implemented 1'44. e4'y 2017: 3/8" Chip Seal travel lanes only Not used on should Dishman Mica (South of Thorpe Ella (South of Valleyway) 13 Surface Treatments Options Choices other than Chip Seals and Overlays? Limitations for Other Options 4-Season Climate Impacts Limited Construction Window Vendor Availability & Mobilization Often from out of state, and out of PNW Contractors need a large enough contract to make it worth their while to travel to our region Multi -Agency Partnerships (regional and or statewide) Spokane 1'� Valley ppIt 6th (West of Pines SR 27 Cost -Benefit of different tools in the toolbox? How to select a specific method if costs are similar? Weather implications Ease of construction Public Opinion Surface Treatments Options 2019 Microsurfacing Pilot Project City of Spokane, Spokane County Another tool in the toolbox Mixed Results Good: Chip Seal + Microsurface Crestline South of 57th (Pictured) Bad: Microsurface Only S Bernard, N Wall, N Washington Poor design Applied to wrong roads (ADT too high) 2021 Do -over (improved design) Guess, Test & Revise Possible CoS-CoSV partnership? 3/8" Chip Seal Spokane .„00Val ley 09/2020 — 1 Year Later Microsurface Application over 3/8" Chip Seal 15 Next Steps: PMP Toolbox Preferences j11eyt City Council Opinion Thoughts on surface treatments? Red lines indicate local streets eligible for Surface Treatments. *Indicate locations pictured in this presentation. 16 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 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: Administrative report — proposed TDS cable television franchise ordinance. GOVERNING LEGISLATION: Chapter 3.65 SVMC; Federal Cable Act, 47 U.S.0 5. PREVIOUS COUNCIL ACTION TAKEN: Council is currently considering amendments to chapter 3.65 SVMC relating to cable franchises. BACKGROUND: The City was recently approached by TDS, which wants to enter the cable television market in the Spokane area, including Spokane Valley. TDS would be a new entrant in the cable market in Spokane Valley, and would represent the first direct cable competitor to Comcast since the City incorporated. TDS, along with Comcast, has worked with the City to draft revisions to chapter 3.65 SVMC. In conjunction with those Code changes, future cable franchises will be significantly shorter, adopting chapter 3.65 SVMC by reference in its entirety, rather than restating all provisions. The intent of these changes is to reduce burdensome regulations, enhance competition, and focus on right-of-way maintenance and safety. This proposed cable franchise would be for 10 years, with the ability by TDS to opt out after five years if there are significant regulatory changes at either the state or federal level, at which point we would renegotiate this franchise for other terms, and/or amend our Code again if necessitated by those state or federal law changes. OPTIONS: (1) Consensus to place on a future agenda for first reading; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: Consensus to place on a future agenda for first reading. BUDGET/FINANCIAL IMPACTS: The franchise will generate franchise fees of 5% of gross revenue which are unrestricted revenue and can be used for any purpose. Additionally, TDS will pay the equivalent of $.35/subscriber/month to be used for capital costs associated with public, educational, and governmental programming, including broadcasting of City Council meetings. STAFF CONTACT: Cary Driskell, City Attorney; Morgan Koudelka, Senior Administrative Analyst; John Pietro, Administrative Analyst. ATTACHMENTS: Draft cable television franchise with TDS. DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO.20-0** AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, GRANTING A NON-EXCLUSIVE CABLE FRANCHISE TO TDS METROCOM, LLC TO CONSTRUCT, MAINTAIN AND OPERATE CERTAIN FACILITIES WITHIN THE PUBLIC RIGHTS -OF -WAY OF THE CITY OF SPOKANE VALLEY, AND OTHER MATTERS RELATING THERETO. WHEREAS, RCW 35A.47.040 authorizes the City to grant, permit, and regulate "nonexclusive franchises for the use of public streets, bridges or other public ways, structures or places above or below the surface of the ground for railroads and other routes and facilities for public conveyances, for poles, conduits, tunnels, towers and structures, pipes and wires and appurtenances thereof for transmission and distribution of electrical energy, signals and other methods of communication, for gas, steam and liquid fuels, for water, sewer and other private and publicly owned and operated facilities for public service;" and WHEREAS, RCW 35A.47.040 further requires that "no ordinance or resolution granting any franchise in a code city for any purpose 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 first being submitted to the city attorney, nor without having been granted by the approving vote of at least a majority of the entire legislative body, nor without being published at least once in a newspaper of general circulation in the city before becoming effective;" and WHEREAS, this Ordinance has been submitted to the City Attorney prior to its passage; and WHEREAS, the Council finds that the grant of franchise contained in this Ordinance, subject to its terms and conditions and chapter 3.65 SVMC, is in the best interests of the public, and protects the health, safety, and welfare of the citizens of this City. NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County, Washington, ordains as follows: Section 1. Grant of Franchise. The City hereby grants to the TDS Metrocom, LLC, (hereinafter "Grantee"), a non-exclusive franchise authorizing the Grantee to construct, maintain, and operate a cable system in the rights -of -way such facilities and other related property or equipment as may be necessary or appurtenant for the deployment of c able television services in the City pursuant to this Franchise and according to the Cable Act. The term of this franchise and all its rights, privileges, obligations, and restrictions shall be 10 years from the effective date. However, upon the fifth year anniversary date of the Franchise term, the Grantee has the option to provide written notice to the City opting out of the remaining five years given a change in federal or State law which negatively impacts the City's ability to regulate this Franchise. To exercise the option, the Grantee shall give the City such written notice at least six months prior to the fifth year anniversary date of the Franchise term. Section 2. Franchise Renewal. Any renewal of this Franchise shall be governed by and comply with the provisions of the Cable Act (47 U.S.C. § 546) as amended. Section 3. City ordinances and regulations, subsequent amendments. Nothing herein shall be deemed to direct or restrict the City's ability to adopt and enforce all necessary and appropriate ordinances regulating the performance of the conditions of this franchise, including any reasonable ordinances made in the exercise of its police powers in the interest of public safety and for the welfare of the public. In the event Ordinance 20-0** TDS Metrocom, LLC, Cable Television Franchise Page 1 of 4 DRAFT the City amends chapter 3.65 SVMC during the term of this franchise such that it conflicts with this franchise, the terms of the franchise shall control unless otherwise agreed in writing by the City and Grantee. Section 4. Adoption by reference of chapter 3.65 Spokane Valley Municipal Code. This franchise specifically adopts by reference as if fully set forth herein the entire chapter 3.65 SVMC relating to regulation of cable television providers. Section 5. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. In the event that any of the provisions of the franchise are held to be invalid by a court of competent jurisdiction, the City reserves the right to reconsider the grant of the franchise and may amend, repeal, add, replace or modify any other provision of the franchise, or may terminate the franchise. Section 6. Notice. Any notice or information required or permitted to be given by or to the parties under this franchise may be sent to the following addresses unless otherwise specified, in writing: City: Grantee: With a copy to: City of Spokane Valley Attn: City Clerk 10210 East Sprague Spokane Valley, WA 99206 TDS Metrocom, LLC Attn: Legal Department 525 Junction Road Madison, WI 53717 Stephen P. Fitzell, Esq. Sidley Austin LLP 1 South Dearborn Street Chicago, IL 60603 Section 7. Choice of Law. Any litigation between the City and Grantee arising under or regarding this franchise shall occur, if in the state courts, in the Spokane County Superior Court, and if in the federal courts, in the United States District Court for the Eastern District of Washington. Section 8. Non -Waiver. The City shall be vested with the power and authority to reasonably regulate the exercise of the privileges permitted by this franchise in the public interest. Grantee shall not be relieved of its obligations to comply with any of the provisions of this franchise by reason of any failure of the City to enforce prompt compliance, nor does the City waive or limit any of its rights under this franchise by reason of such failure or neglect. Section 9. Entire Agreement. This franchise, including adoption by reference of the terms contained in chapter 3.65 SVMC relating to regulation of cable television providers, constitutes the entire understanding and agreement between the parties as to the subject matter herein and no other agreements or understandings, written or otherwise, shall be binding upon the parties upon execution and acceptance hereof. This franchise shall also supersede and cancel any previous right or claim of Grantee to occupy the City roads as herein described. Section 10. Acceptance. Not later than 60 days after passage of this Ordinance, Grantee shall accept the franchise herein by filing with the City Clerk an unconditional written acceptance thereof and provision of Ordinance 20-0** TDS Metrocom, LLC, Cable Television Franchise Page 2 of 4 DRAFT the performance bond pursuant to SVMC 3.65.280. Failure of Grantee to so accept this franchise within said period of time shall be deemed a rejection thereof by Grantee, and the rights and privileges herein granted shall, after the expiration of the 60-day period, absolutely cease unless the time period is extended by subsequent ordinance passed for that purpose. Section 11. Effective Date. This Ordinance shall be in full force and effect at least five days after publication of the Ordinance or a summary thereof occurs in the official newspaper of the City of Spokane Valley as provided by law, and following acceptance by Grantee pursuant to Section 10. PASSED by the City Council this day of , 2020. ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Approved as to Form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 20-0** TDS Metrocom, LLC, Cable Television Franchise Page 3 of 4 DRAFT Accepted by TDS Metrocom, LLC By: By: The Grantee, TDS Metrocom, LLC a limited partnership company, for itself, and for its successors and assigns, does accept all of the terms and conditions of the foregoing Franchise. IN WITNESS WHEREOF, has signed this day of , 2020. Subscribed and sworn before me this day of , 2020. Notary Public in and for the State of residing in My commission expires Ordinance 20-0** TDS Metrocom, LLC, Cable Television Franchise Page 4 of 4 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 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: Federal lobbyist contract— renewal discussion GOVERNING LEGISLATION: SVMC 3.46.010, SVMC 3.46.030. PREVIOUS COUNCIL ACTION TAKEN: June 12, 2018 Budget Workshop, request from Council that staff initiate the process for identifying and contracting with a government affairs firm that specializes in lobbying at the federal level, and specifically has expertise in federal transportation funding; July 24, 2018 administrative report; November 6, 2018 administrative report; November 13, 2018 authorization from Council to City Manager to finalize and execute the agreement; and November 19, 2019 renewal letter for calendar year 2020 services. BACKGROUND: In 2018, Council requested that staff initiate an RFQ (request for qualifications) process to identify qualified firms to provide governmental affairs (lobbying) assistance to the City for federal issues, including for additional funding for large infrastructure projects including Bridging the Valley and the Barker Road Corridor Project. The City received 18 responses from various firms. From those, the review team identified five for phone interviews, from which the review team identified two firms to interview in person, and Cardinal Infrastructure, LLC, (Cardinal) was awarded a one-year contract with renewable options. The parties agreed to renew the contract for 2020. The City has operated under that agreement with Cardinal for almost two years. Staff wants to bring similar contracts back to Council more frequently than has been done in the past to find out if Council has an opinion on whether to renew the contract, or consider other options such as putting it back out for another RFQ or contacting another of the highly -rated responding service providers to see if they are still interested in representing the City. Under the current agreement, the City pays Cardinal for all services and costs related to providing the services set forth in the Scope of Services/Fee Statement in the annual amount of $78,000. This includes two trips by Cardinal to travel to Spokane Valley each year to assist us in formulating a federal lobbying agenda, and to keep the City apprised as needed on issues of interest to the City. It also includes hard costs incurred by Cardinal in conducting meetings by visiting Councilmembers and staff twice per year. Costs for Councilmembers and staff for such things as airfare, hotel, meals, and transportation to and in Washington, D.C. are covered by the City. This year, as a consequence of the pandemic, the City has not made any trips to Washington D.C., nor has Cardinal been able to travel to Spokane Valley. Staff is looking for direction from Council on how to proceed. OPTIONS: (1) Consensus to continue existing agreement with Cardinal Infrastructure; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: None at this time. BUDGET/FINANCIAL IMPACTS: The City currently budgets $78,000 annually, plus City costs for travel expenses to and from Washington D.C. STAFF CONTACT: Cary Driskell, City Attorney. ATTACHMENTS: Adopted contract with Cardinal Infrastructure, LLC for federal lobbyist. AGREEMENT FOR SERVICES Cardinal Infrastructure, LLC THIS AGREEMENT is made by and between the City of Spokane Valley, a code City of the State of Washington, hereinafter "City" and Cardinal Infrastructure, LLC, hereinafter "Consultant," jointly referred to as "Parties." IN CONSIDERATION of the terms and conditions contained herein, the Parties agree as follows: 1. Work to Be Performed. Consultant shall provide all labor, services, and material to satisfactorily complete the Scope of Services, attached as Exhibit A. A. Administration. The City Manager or designee shall administer and be the primary contact for Consultant. Prior to commencement of work, Consultant shall contact the City Manager or designee to review the Scope of Services, schedule, and date of completion. Upon notice from the City Manager or designee, Consultant shall commence work, perform the requested tasks in the Scope of Services, stop work, and promptly cure any failure in performance under this Agreement. B. Representations. City has relied upon the qualifications of Consultant in entering into this Agreement. By execution of this Agreement, Consultant represents it possesses the ability, skill, and resources necessary to perform the work and is familiar with all current laws, rules, and regulations which reasonably relate to the Scope of Services. No substitutions of agreed -upon personnel shall be made without the prior written consent of City. Consultant represents that the compensation as stated in paragraph 3 is adequate and sufficient for the timely provision of all professional services required to complete the Scope of Services under this Agreement. Consultant shall be responsible for the technical accuracy of its services and documents resulting therefrom, and City shall not be responsible for discovering deficiencies therein. Consultant shall correct such deficiencies without additional compensation except to the extent such action is directly attributable to deficiencies in City -furnished information. C. Standard of Care. Consultant shall exercise the degree of skill and diligence normally employed by professional consultants engaged in the same profession, and performing the same or similar services at the time such services are performed. D. Modifications. City may modify this Agreement and order changes in the work whenever necessary or advisable. Consultant will accept modifications when ordered in writing by the City Manager or designee, so long as the additional work is within the scope of Consultant's area of practice. Compensation for such modifications or changes shall be as mutually agreed between the Parties. Consultant shall make such revisions in the work as are necessary to correct errors or omissions appearing therein when required to do so by City without additional compensation. 2. Term of Contract. This Agreement shall be in full force and effect upon execution and shall remain in effect until December 31, 2019. Upon mutual written agreement of the Parties, the City may grant up to four additional one-yeear options, which may be exercised by the City Manager. Renewal, if any, shall coincide with the calendar year. Agreement for Services (without professional liability coverage) Page 1 of 6 Either Party may terminate this Agreement for material breach after providing the other Party with at least 10 days' prior notice and an opportunity to cure the breach. City may, in addition, terminate this Agreement for any reason by 10 days' written notice to Consultant. In the event of termination without breach, City shall pay Consultant for all work previously authorized and satisfactorily performed prior to the termination date. 3. Compensation. City agrees to pay Consultant '$78,000 annually, ($6,500 monthly), (which includes Washington State Sales Tax if any is applicable) as full compensation for everything done under this Agreement, including all expenses, as set forth in Exhibit A. Consultant shall not perform any extra, further, or additional services for which it will request additional compensation from City without a prior written agreement for such services and payment therefore. 4. Payment. Consultant shall be paid monthly upon presentation of an invoice to City. Applications for payment shall be sent to the City Finance Department at the below -stated address. City reserves the right to withhold payment under this Agreement for that portion of the work (if any) which is determined in the reasonable judgment of the City Manager or designee to be noncompliant with the Scope of Services, City standards, City Code, and federal or state standards. 5. Notice. Notiees other than applications for payment shall be given in writing as follows: TO THE CITY: TO THE CONSULTANT: Name: Christine Bainbridge, City Clerk Phone: (509) 720-5000 Address: 10210 East Sprague Avenue Spokane Valley, WA 99206 Name: Anja Graves, Partner Cardinal Infrastructure, LLC Phone: 202-434-8266 Address: 601 Pennsylvania Avenue NW, Suite 900 Washington, D.C., 20004 6. Applicable Laws and Standards. The Parties, in the performance of this Agreement, agree to comply with all applicable federal, state, and local laws and regulations. Consultant. warrants that its designs, construction documents, and services shall conform to all federal, state, and local statutes and regulations. 7. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions. A. By executing this Agreement, the Consultant certifies to the best of its knowledge and belief that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses Agreement for Services (without professional liability coverage) Page 2 of 6 enumerated in paragraph (AX2) of this certification; and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions (federal, state, or local) terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this Agreement. 8. Relationship of the Parties. It is understood and agreed that Consultant shall be an independent contractor and not the agent or employee of City, that City is interested in only the results to be achieved, and that the right to control the particular manner, method, and means in which the services are performed is solely within the discretion of Consultant. Any and' all employees who provide services to City under this Agreement shall be deemed employees solely of Consultant. The Consultant shall be solely responsible for the conduct and actions of all its employees under this Agreement and any liability that may attach thereto. 9. Ownership of Documents. All drawings, plans, specifications, and other related, documents prepared by Consultant under this Agreement are and shall be the property of City, and may be subject to disclosure pursuant to chapter 42.56 RCW or other applicable public record laws. The written, graphic, mapped, photographic, or visual documents prepared by Consultant under this Agreement shall, unless otherwise provided, be deemed the property of City. City shall be permitted to retain these documents, including reproducible camera-ready originals of reports, reproduction quality mylars of maps, and copies in the form of computer files, for the City's use. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, in whole or in part, any reports, data, drawings, images, or other material prepared under this Agreement, provided that Consultant shall have no liability for the use of Consultant's work product outside of the scope of its intended purpose. 10. Records. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of Consultant's records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit, examine, make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, and record of matters covered by this Agreement for a period of three years from the date final payment is made hereunder. 11. Insurance. Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may Arise from or in connection with the performance of the work hereunder by Consultant, its agents, representatives, employees, or subcontractors. A. Minimum Scope of Insurance. Consultant shall obtain insurance of the types described below: 1. Automobile liability insurance covering all owned, non -owned, hired, and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. 2. Commercial general liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop -gap independent contractors and personal injury, and advertising injury. City shall be named as an additional insured under Consultant's commercial general liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26. Agreement for Services (without professional liability coverage) Page 3 of 6 3. Workers' compensation coverage as required by the industrial insurance laws of the State of Washington. B. Minimum Amounts of Insurance. Consultant shall maintain the following insurance limits: 1. Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of no less than $1,000,000 per accident. 2. Commercial general liability insurance shall be written with limits no less than $1,000,000 for each occurrence, and $2,000,000 for general aggregate. C. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions for automobile liability and commercial general liability insurance: 1. Consultant's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by City shall be in excess of Consultant's insurance and shall not contribute with it. 2. Consultant shall fax or send electronically in .pdf format a copy of insurer's cancellation notice within two business days of receipt by Consultant. 3. If Consultant maintains higher insurance limits than the minimums shown above, City shall be insured for the full available limits of commercial general and excess or umbrella liability maintained by Consultant, irrespective of whether such limits maintained by Consultant are greater than those required by this Agreement or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by Consultant. 4. Failure on the part of Consultant to maintain the insurance as required shall constitute a material breach of the Agreement, upon which the City may, after giving at least five business days' notice to Consultant to correct the breach, immediately terminate the Agreement, or at its sole discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to City on demand, or at the sole discretion of the City, offset against funds due Consultant from the City. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Evidence of Coverage. As evidence of the insurance coverages required by this Agreement, Consultant shall furnish acceptable insurance certificates to the City Clerk at the time Consultant returns the signed Agreement, which shall be Exhibit C. The certificate shall specify all of the parties who are additional insureds, and shall include applicable policy endorsements, and the deduction or retention level. Insuring companies, or entities are subject to City acceptance. If requested, complete copies of insurance policies shall be provided to City. Consultant shall be fmancially responsible for all pertinent deductibles, self -insured retentions, and/or self-insurance. 12. Indemnification and Hold Harmless. Consultant shall, at its sole expense, defend, indemnify, and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, attorney's fees, costs of litigation, expenses, injuries, and damages of any nature whatsoever Agreement for Services (without professional liability coverage) Page 4 of 6 relating to or arising out of the wrongful or negligent acts, errors, or omissions in the services provided by Consultant, Consultant's agents, subcontractors, subconsultants, and employees to the fullest extent permitted by law, subject only to the limitations provided below. Consultant's duty to defend, indemnify, and hold City harmless shall not apply to liability for damages arising out of such services caused by or resulting from the sole negligence of City or City's agents or employees pursuant to RCW 4.24.115. Consultant's duty to defend, indemnify, and hold City harmless against liability for damages arising out of such services caused by the concurrent negligence of (a) City or City's agents or employees, and (b) Consultant, Consultant's agents, subcontractors, subconsultants and employees, shall apply only to the extent of the negligence of Consultant, Consultant's agents, subcontractors, subconsultants, and employees. Consultant's duty to defend, indemnify, and hold City harmless shall include, as to all claims, demands, losses, and liability to which it applies, City's personnel -related costs, reasonable attorneys' fees, the reasonable value of any services rendered by the office of the City Attorney, outside consultant costs, court costs, fees for collection, and all other claim -related expenses. Consultant specifically and expressly waives any immunity that may be granted it under the Washington State Industrial Insurance Act, Title 51 RCW. These indemnification obligations shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable to or for any third party under workers' compensation acts, disability benefit acts, or other employee benefits acts. Provided, that Consultant's waiver of immunity under this provision extends only to claims against Consultant by City, and does not include, or extend to, any claims by Consultant's employees directly against Consultant. Consultant hereby certifies that this indemnification provision was mutually negotiated. 13. Waiver. No officer, employee, agent, or other individual acting on behalf of either Party has the power, right, or authority to waive any of the conditions or provisions of this Agreement. A waiver in one instance shall not be held to be a waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law shall be taken and construed as cumulative and in addition to every other remedy provided herein or by law. Failure of either Party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other Party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof. 14. Assignment and Delegation. Neither Party may assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without prior written consent of the other Party. 15. Subcontracts. Except as otherwise provided herein, Consultant shall not enter into subcontracts for any of the work contemplated under this Agreement without obtaining prior written approval of City. 16. Confidentiality. Consultant may, from time -to -time, receive information which is deemed by City to be confidential. Consultant shall not disclose such information without the prior express written consent of City or upon order of a court of competent jurisdiction. 17. Jurisdiction and Venue. This Agreement is entered into in Spokane County, Washington. Disputes between City and Consultant shall be resolved in the Superior Court of the State of Washington in Spokane Agreement for Services (without professional liability coverage) Page 5 of 6 County. Notwithstanding the foregoing, Consultant agrees that it may, at City's request, be joined as a party in any arbitration proceeding between City and any third party that includes a claim or claims that arise out of, or that are related to Consultant's services under this Agreement. Consultant further agrees that the Arbitratoi(s)' decision therein shall be final and binding on Consultant and that judgment may be entered upon it in any court having jurisdiction thereof. 18. Cost and Attornev's Fees. The prevailing party in any litigation or arbitration arising out of this Agreement shall be entitled to its attorney's fees and costs of such litigation (including expert witness fees). 19. )entire Agreement. This written Agreement constitutes the entire and complete agreement between the Parties and supersedes any prior oral or written agreements. This Agreement may not be changed, modified, or altered except in writing signed by the Parties hereto. 20. Anti -kickback. No officer or employee of City, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted, or granted a present or future gift, favor, service, or other thing of value from any person with an interest in this Agreement. 21. Boldness Registration. Prior to commencement of work under this Agreement, Consultant shall register with the City as a business if it has not already done so. 22. Severability. If any section, sentence, clause, or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction, such invalidity shall not affect the validity of any other section, sentence, clause, or phrase of this Agreement. 23. Exhibits. Exhibits attached and incorporated into this.Agreement are: A. Scope of Services/Fee proposal B. Insurance Certificates 4 The Parties have executed this Agreement this L day of Otte/MI/en . 202 CITY OF SPOKANE VALLEY Consultant: Cardinal Infrastructure, LLC /f Mark Calhoun, City Manager ATTEST: Christine Bainbridge, City Cler‘ri°/\- APPROVED AS TO FORM: By: ScitrA 041e /- Its: Authorized Representative Agreement for Services (without professional liability coverage) Page 6 of 6 E II 11: IT A SCOPE OF SERVICES AND FEE STATEMENT FOR FEDERAL LOBBYIST SERVICES (A) Research available federal funding options for the design, construction, or maintenance • of municipal transportation infrastructure, and make appropriate recommendations to the City as to which options should be pursued and how they should be presented to the relevant decision makers. ' ' . (B) Work to gain on -the -record Congressional support for the City's various grant applications and its other federal priorities, where appropriate. This support shall come in the form of Congressional letters of support and direct communications with federal agencies, including the United States Department of Transportation ("USDOT"), the Federal Highway Administration ("FHWA"), the Federal Railroad Administration ("FRA"), the Economic Development Administration ("EDA"), and other federal agencies. (C) Develop agendas, communication strategies, persuasive written materials, and meeting schedules for elected officials and City staff during two annual visits to Washington, D.C. The Consultant is also expected to conduct similar activities in arranging meetings with other pertinent parties; these may include meetings with the various Congressional offices, USDOT, FRA, and trade associations. (D) Assist the City in identifying the City's legislative priorities, in drafting an appropriate legislative agenda, in drafting persuasive written materials, and creating a lobbying strategy to successfully pursue the City's federal legislative priorities. (E) Maintaining and strengthening the existing relationships between the City and the Washington State congressional delegation. (F) Develop a federal communications strategy with related materials that promotes the City's federal agenda and highlights its federal priorities among key decision makers in Congress, USDOT, and the FRA. (G) Identify, develop and lobby for other federal government opportunities for the City as they develop. This includes but is not limited to economic and community development funding through programs such as the EDA's Public Works programs. (H) Provide oversight and recommendations on federal agency rulemaking efforts which are of interest to the City Council as it relates to the City's adopted federal legislative agenda. (I) Work with trade association groups (i.e. National League of Cities et. al.) on issues related to the City's federal transportation priorities. (J) Engage in lobbying efforts to further the City's agenda, at the discretion of the City and the Consultant. This includes meeting with the legislative delegation, legislative leadership, identifying stakeholders, and developing a strategic plan. (K) This Scope of Services contemplates that a City delegation anticipated to consist of two to three Councilmembers and two staff members will make two annual trips to Washington D.C. It also contemplates that a contingent of one to two members of Consultant's staff will make two annual trips to the City for the purpose of meeting with the Council and staff to accomplish the tasks set forth in this Scope of Services. The total annual cost for provision of everything set forth in this Scope of Services, including all expenses, is $78,000 annually, ($6,500 monthly) .which shall be paid monthly pursuant to Section 4 of the Agreement for Services. (L) Excluded costs, which shall bete responsibility of.the .City, include the following: • (1) Airfare, hotel, and meals for City. Councilmembers and staff for;visits to; Washington D.C.; . (2) The reasonable expenses for any additional visits by the City to Washington D.C., or by Consultant to the City.at City's request, shall be paid by the City. A oRb� CERTIFICATE OF LIABILITY INSURANCE DATEOBUDDNYYY) 10/30/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. OR ALTER THE COVERAGE AFFORDED BY THE POLICIES THIS BETWEEN THE ISSUING INSURER(S), AUTHORIZED IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION 1S WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). PRODUCER ROBERT T. KIRKWOOD, INC. 91 Washington Avenue Pleasantville NY 10570 CONTAGY N6)769-4706 /AI�CNNaF tL (914)769-9070 X118 I f�No (91 ADRESS: INSURERS) AFFORDING COVERAGE NAIC 0 INSURERA:Trawlers Casualty Ins Co of America INSURED Cardinal Infrastructure LLC 601 Pennsylvania Ave NW Suite 900 Washington DC 20004 INsuRERB:Trawler$ Indemnity Co of America 25666 INsusatc:Tarmington Casualty 41483 INstomso Ironehore Specialty Ins Co 25445 INSURER E : RN F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POUCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE wgDSR ADDL SUBRNM/DDDDIYM wNVD POLICY NIMMBER M Y IMWDUDIYYEXPYY1 OATS A X COMMERCIAL GENERAL LIABILITY 680489588431642 7/29/2018 7/29/2019 EACH OCCURRENCE 6 1,000,000 POSES occurrence) $ 300,000 CLAIMS -MADE X OCCUR pED p P (Any ono psi) $ 5,000 PERSONAL s ADV INJURY S 1,000,000 GENERALAGGREGATE S 2,000,000 GENIAGGREGATEUMITAPPLIESPER: POLICY OTHER: JECaT LOC PRODUCTS - COMP/OP AGO $ 2,000,000 S A AUTOMOBILE — ^ALL _ X LIABILITY ANYAUTO OWNED AUTOS HIRED AUTOS --- R SCHEDULED AUTONON-CANNED AUTOS • 6804E9588431642 v 7/29/2018 7/29/2019 COMBINED SINGLE UMIT (Ea accident) $ 1,000 ,000 BODILY INJURY (Per person) 6 BODILY INJURY (Per accident) 5 PROPERTY DAMAGE (Per acdden0 S S B X UMBRELLALIAB EXCESS LAB / X OCCUR CLAIMS -MADE CDW4E9765351842 7/29/2018 7/29/2019 EACH OCCURRENCE S 1,000,000 AGGREGATE $ 1,000,000 S DED RETENTION $ C WORKERS COMPENSATION N/A 084895962A1642G 7/29/2018 7/29/2019 STATUTE ER AND EMPLOYERS•LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y / N OFFLCER/MEMERIXCLUDED7 (Mandatory InNNH) H yss, describe under DESCRIPTION OF OPERATIONS below E.L. EACH ACCIDENT S 1,000,000 E.L. DISEASE - EA EMPLOYEE i 1,000,000 E.L DISEASE - POUCY UMr $ 1,000,000 D Professional Liability 003658600 6/15/18 6/15/19 Earn Chan $2 , 000, 000 AMMO* $2,000,000 DESCRBITION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule. may be attached Emirs space Is required) CITY OF SPOKANE VALLEY I8 ADDITIONAL INSURED AS RESPECTS WORE PERFORMED BY THE INSURED. CERTIFICATE HOLDER CANCELLATION CITY OF SPOKANE VALLEY 10210 EAST SPRAGUE AVE SPOKANE VALLEY, WA 99206 1 SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE • THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORED REPRESENTATNE R Kirkwood/COM004¢4A6m,4.4 ®1988 2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) INS025 (2D14D1) The ACORD name and logo are registered marks of ACORD / ACCORD CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDD/YYYY) 06/09/2020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER ROBERTT. KIRKWOOD, INC. 91 Washington Avenue Pleasantville NY 10570 CONTACT Ronald Kirkwood NAME: q/c,NN , Ext): (914) 769-9070 FAX No): (914) 769-4706 E-MAIL rwkirkwood@kirkwoodinsurance.com ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC # INSURER A: Travelers Casualty Ins Co of America INSURED Cardinal Infrastructure LLC 601 Pennsylvania Ave NW South Building, Suite 900 Washington DC 20004 INSURER B: Travelers Indemnity Co of America 25666 INSURER C: Charter Oak Fire Ins Co. 25615 INSURER D : Ironshore Specialty Ins Co 25445 INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD SUBR WVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS A X COMMERCIAL GENERAL LIABILITY 6804H9588431942 07/29/2020 07/29/2021 EACH OCCURRENCEDAMAGE $ 2000000 CLAIMS -MADE X OCCUR TO RETED PREMISES (Ea occurrence) $ 300'000 MED EXP (Any one person) $ 5'000 PERSONAL &ADV INJURY $ 1,000,000 GEN'L X AGGREGATE POLICY OTHER: LIMIT APPLIES JECT PRO-LOC PER: GENERAL AGGREGATE $ 2,000,000 PRODUCTS -COMP/OPAGG $ 2'000'O00 Employee Benefits $ B AUTOMOBILE _ _ LIABILITY ANY AUTO OWNED AUTOS ONLY HIRED AUTOS ONLY �/ /• SCHEDULED AUTOS NON -OWNED AUTOS ONLY BA-9M040230-20-42-G 07/01/2020 07/01/2021 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ BODILYINJURY(Peraccident) $ PROPERTY DAMAGE (Per accident) $ Uninsured motorist $ 1,000,000 B UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE CUP4H976535 19 42 07/29/2020 07/29/2021 y EACH OCCURRENCE 1,000,000 $ AGGREGATE $ 1000000 DED X RETENTION $ 10'000'000 $ C WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y / N N /A UB4H95962A1942G 07/29/2020 07/29/2021 PER STATUTE OTH- ER E.L. EACH ACCIDENT 1,000,000 $ E.L. DISEASE - EA EMPLOYEE $ 1'000'000 E.L. DISEASE - POLICY LIMIT 1000'000 $ ' D PROFESSIONAL LIABILITY 003658601 06/20/2020 06/20/2021 EACH CLAIM AGGREGATE $2,000,000 $2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) CITY OF SPOKANE VALLEY IS ADDITIONAL INSURED AS RESPECTS WORK PERFORMED BY THE INSURED. CERTIFICATE HOLDER CANCELLATION CITY OF SPOKANE VALLEY 10210 EAST SPRAGUE AVE SPOKANE VALLEY WA 99206 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE T ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD To: From: Re: DRAFT ADVANCE AGENDA as of October 1, 2020; 11:00 a.m. Please note this is a work in progress; items are tentative Council & Staff City Clerk, by direction of City Manager Draft Schedule for Upcoming Council Meetings Oct 13, 2020, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes, Resolution declaring property surplus) 2. Second Reading Ordinance 20-012 Cable Code Amendment - Cary Driskell 3. First Reading Ordinance 20-013 Nonconforming Use CTA 2020-0003 - Lori Barlow 4. First Reading Ordinance 20-014 Street Vacation STV 2020-0001 - Connor Lange 5. First Reading Ordinance 20-015 TDS Cable Franchise - Cary Driskell 6. Motion Consideration: Bid Award, Browns Park Playground - Bill Helbig 7. Mayoral Appointment- Planning Commissioner - Mayor Wick 8. Admin Report: City Manager Presents 2021 Preliminary Budget - Mark Calhoun 9. Admin Report: Advance Agenda - Mayor Wick [due Tue Oct 61 (5 minutes) (15 minutes) (15 minutes) (10 minutes) (10 minutes) (10 minutes) (5 minutes) (60 minutes) (5 minutes) [*estimated meeting: 135 mins] Oct 20, 2020, Study Session, 6:00 p.m. ACTION ITEMS: 1. Second reading Ordinance 20-015 TDS Cable Franchise - Cary Driskell 2. Motion Consideration: Awards to Outside Agencies - Chelsie Taylor NON -ACTION ITEMS: 3. CTA 2019-0005 Title 20 Subdivision Regulations - Connor Lange 4. 2021 State Legislative Agenda - C. Driskell, J. Hohman, M. Calhoun 5. Donation Recognition & Facility Naming Protocol - Cary Driskell, Mike Stone 6. Parliamentary Processes - Chris Bainbridge 7. Advance Agenda - Mayor Wick Oct 27, 2020, Formal Meetin2 Format, 6:00 p.m. 1. Public Hearing #2 - 2021 Budget - Chelsie Taylor 2. Consent Agenda (claims, payroll, minutes) 3. Second Reading Ordinance 20-013 Nonconforming Use CTA 2020-0003 - Lori Barlow 4. Second Reading Ordinance 20-014 Street Vacation STV 2020-0001 - Connor Lange 5. First Reading Ordinance 20-016 Property Tax Ordinance - Chelsie Taylor 6. Admin Report: 2020 Budget Amendment - Chelsie Taylor 7. Admin Report: Advance Agenda - Mayor Wick 8. Info Only: Department Monthly Reports Nov 3, 2020, Study Session, 6:00 p.m. 1. Advance Agenda - Mayor Wick Nov 10, 2020, Formal Meetin2 Format, 6:00 p.m. 1. Public Hearing: 2020 Budget Amendment - Chelsie Taylor 2. Consent Agenda (claims, payroll, minutes) 3. Second Reading Ordinance 20-016 Property Tax - Chelsie Taylor 4. First Reading Ordinance 2020 Budget Amendment - Chelsie Taylor 5. First Reading Ordinance Adopting 2021 Budget - Chelsie Taylor 6. Admin Report: Advance Agenda - Mayor Wick [due Tue Oct 13] (10 minutes) (20 minutes) (20 minutes) (15 minutes) (15 minutes) (15 minutes) (5 minutes) [*estimated meeting: 100 mins] [due Tue Oct 20] (15 minutes) (5 minutes) (15 mins) (10 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting: 70 mins] [due Tue Oct 27] (5 minutes) [due Tue Nov 31 (10 minutes) (5 minutes) (10 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting: 50 mins] Draft Advance Agenda 10/1/2020 1:17:00 PM Page 1 of 2 Nov 17, 2020, Study Session, 6:00 p.m. [due Tue Nov 101 ACTION ITEMS 1. Motion Consideration: Approval of '21 St. Legislative Agenda— C.Driskell, J.Hohman, M. Calhoun(15 min) 2. Advance Agenda — Mayor Wick (5 minutes) Nov 24, 2020, Formal Meeting Format, 6:00 p.m. 1. Public Hearing #3 — 2021 Budget — Chelsie Taylor 2. Consent Agenda (claims, payroll, minutes) 3. Second Reading Ordinance 2020 Budget Amendment — Chelsie Taylor 4. Second Reading Ordinance Adopting 2021 Budget — Chelsie Taylor 5. Admin Report: LTAC Recommendations to Council — Chelsie Taylor 6. Admin Report: 2021 Fee Resolution — Chelsie Taylor 7. Admin Report: Advance Agenda — Mayor Wick 8. Info Only: Department Monthly Reports [due Tue Nov 101 (10 minutes) (5 minutes) (10 minutes) (10 minutes) (15 minutes) (15 minutes) (5 minutes) [*estimated meeting: 70 mins] Dec 1, 2020, Study Session, 6:00 p.m. - Cancelled due to Thanksgiving Holiday December 8, 2020, Regular Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Resolution for 2021 Fees (if changes are needed) — Chelsie Taylor 3. Motion Consideration: Award Lodging Tax for 2021 — Chelsie Taylor 4. Admin Report: Tourism Venues — John Hohman 5. Admin Report: Advance Agenda — Mayor Wick Dec 15, 2020, Study Session, 6:00 p.m. 1. Advance Agenda — Mayor Wick December 22, 2020, Regular Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Wick Dec 29, 2020, Study Session, 6:00 p.m. 1. Advance Agenda — Mayor Wick 2. Info Only: Department Monthly Reports [due Tue Dec 1] (5 minutes) (10 minutes) (15 minutes) (15 minutes) (5 minutes) [*estimated meeting: 50 mins] Jan 5, 2021, Study Session, 6:00 p.m. ACTION ITEMS: 1. Mayoral Appointments: Councilmembers to committees — Mayor Wick 2. Mayoral Appointments- Planning Commissioners — Mayor Wick 3. Mayoral Appointments: Lodging Tax Advisory Committee — Mayor Wick NON -ACTION ITEMS: 1. Advance Agenda — Mayor Wick [due Tue Dec 81 (5 minutes) [due Tue Dec 15] (5 minutes) (5 minutes) [due Tue Dec 221 (5 minutes) [due Tue Dec 291 [*estimated meeting: *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Appleway Trail Amenities PFD Presentation Arts Council Sculpture Presentations Artwork & Metal Boxes Core Beliefs Resolution Fee Resolution Cost of Service Analysis Flashing Beacons/School Signage Health District Stats Mirabeau Park Forestry Mgmt. Park Lighting SPEC Report/Update STA (2021) St. Illumination (owners, cost, location) St. O&M Pavement Preservation Vehicle Wgt Infrastructure Impact Water Districts & Green Space Way Finding Signs (15 minutes) (10 minutes) (10 minutes) (5 minutes) mins] Draft Advance Agenda 10/1/2020 1:17:00 PM Page 2 of 2 Sp kane 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: September 28, 2020 Re: Finance Department Activity Report — August 2020 Following is information pertaining to Finance Department activities through the end of August 2020 and included herein is an updated 2020 Budget to Actual Comparison of Revenues and Expenditures through the end of August. 2019 Year-end Process The 2019 books were closed in May and the annual financial report was completed and filed on June 17th. The State Auditor's Office completed fieldwork for the audit of fiscal year 2019, and the exit for the single and financial statement audits is scheduled for September 24th. We expect the accountability audit and related exit conference to be completed in October. 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 Council budget workshop • September 8 Admin report on 2021 revenues and expenditures • September 22 Public hearing #1 on the 2021 revenues and expenditures • October 13 City Manager's presentation of preliminary 2021 Budget • October 27 Public hearing #2 on 2021 Budget • November 10 First reading on proposed ordinance adopting the 2021 Budget • November 24 Public hearing #3 on the 2021 Budget • November 24 Second reading on proposed ordinance adopting the 2021 Budget 2021 Property Tax Levy A significant part of the budget development process includes the annual levy of property taxes which in 2021 are expected to account for approximately 28.01% of recurring General Fund revenues. Council discussions specifically related to this topic will take place at the following meetings: • September 22 Public hearing on 2021 revenues including property taxes • September 29 Admin Report on proposed ordinance levying 2021 property taxes • October 27 First reading of ordinance levying 2021 property taxes and confirming tax levy • November 10 Second reading of ordinance levying 2021 property taxes and confirming tax levy P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 08 31.docx Page 1 Outside Agency Funding in the 2021 Budget The City has historically provided funding for local organizations involved in either social services or economic development activities and the preliminary 2021 Budget currently has $244,000 collectively available for this, with $62,000 being set aside for contracted economic development. The schedule leading to awarding funds is as follows: • July 10 Letters mailed to agencies that have historically received funding, media release to City website and notice to newspapers • August 7 Agency requests are due at City Hall • September 15 Economic development and social service agency presentations to Council • October 20 Council makes final determination of awards 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 6 through 18. 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. 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 reflected in our 2019 Annual Financial Report. • Columns of information include: o The 2020 Budget as adopted o August 2020 activity o Cumulative 2020 activity through August 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 6): Recurring revenues collections are currently at 46.57% of the amount budgeted with 66.67% 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 $6,807,010 or 54.75% of the amount budgeted. The amount as a percentage of the budget is less than the same period in 2019 due to Spokane County extending the deadline for property owners to pay property taxes. • Sales tax collections represent only seven months of collections thus far because taxes collected in August are not remitted to the City by the State until the latter part of September. Collections are currently at $13,657,975 or 55.45% of the amount budgeted. The City is currently comparable to 2019 year-to-date collections, and we are watching revenue collections closely. P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 08 31.docx Page 2 • Gambling taxes are at $58,198 or 15.16% of the amount budgeted. Gambling taxes are paid quarterly with first quarter payments due by April 30 and second quarter payments due by July 31st. 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 $633,590 or 51.93% 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 August we've received remittances totaling $1,145,938 or 67.88% 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 August we've received remittances through the month of July with receipts of $443,867 or 41.19% 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 $2,369,069 or 111.23% 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 $140,286 or 21.28% of the amount budgeted. We're seeing a significant decrease in 2020 revenues due to not being able to operate the City's normal recreation and aquatics activities with the COVID-19 pandemic. Recurring expenditures are currently at $25,371,718 or 58.70% of the amount budgeted with 66.67% of the year elapsed. Investments (page 19) Investments at August 31 total $74,213,742 and are composed of $69,036,252 in the Washington State Local Government Investment Pool and $5,177,490 in bank CDs. Total Sales Tax Receipts (page 20) Total sales tax receipts reflect State remittances through August and total $15,443,242 including general, criminal justice, and public safety taxes. This figure is $19,348 or 0.13% greater than the same seven -month period in 2019. Economic Indicators (pages 21 — 23) 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 21) provide a sense of how much individuals and businesses are spending on the purchase of goods. 2. Hotel / Motel taxes (page 22) provide us with a sense of overnight stays and visits to our area by tourists or business travelers. 3. Real Estate Excise taxes (page 23) provide us with a sense of real estate sales. P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 08 31.docx Page 3 Page 21 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 $17,224 or 0.13%. • 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 reflects the effects of COVID-19 on the economy. Page 22 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 $158,580 or 42.20%. • Collections reached an all-time high in 2019 of $743,851, exceeding the previous high set in 2018 of $646,976. • This activity reflects the effects of COVID-19 on the economy. Page 23 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 decreased by $237,544 or 12.39%. • Collections reached an all-time high in 2018 of $3,800,432, and subsequently decreased to $3,333,549 in 2019. • This activity reflects the effects of COVID-19 on the economy. Debt Capacity and Bonds Outstandinq (page 24) 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: 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 25 and 26) The last two charts reflect a history for the two primary sources of revenue in Street Fund #101. These include: • Page 25 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 decreased by $179,354 or 15.78%. 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 reflects the effects of COVID-19 on the economy. P:IFinancelFinance Activity Reports\Council Monthly Reports1202012020 08 31.docx Page 4 • Page 26 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 $85,825 or 9.22%. 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 08 31.docx Page 5 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 #001 - GENERAL FUND RECURRING ACTIVITY Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget Revenues Property Tax 12,432,400 57,134 6,807,010 (5,625,390) 54.75% Sales Tax 24,632,900 2,368,495 13,657,975 (10,974,925) 55.45% Sales Tax - Public Safety 1,162,600 111,589 647,874 (514,726) 55.73% Sales Tax - Criminal Justice 2,052,300 197,384 1,137,393 (914,907) 55.42% Gambling Tax and Leasehold Excise Tax 384,000 6,839 58,198 (325,802) 15.16% Franchise Fees/Business Registration 1,220,000 8,792 633,590 (586,410) 51.93% State Shared Revenues 1,688,200 0 1,145,938 (542,262) 67.88% Fines, Forfeitures and Penalties 1,077,700 63,210 443,867 (633,833) 41.19% Community and Public Works 2,129,800 188,560 2,369,069 239,269 111.23% Recreation Program Revenues 659,200 6,070 140,286 (518,914) 21.28% Miscellaneous Department Revenue 21,000 19 20,960 (40) 99.81 % Miscellaneous& Investment Interest 791,700 14,127 250,703 (540,997) 31.67% Transfers in - #105 (h/m tax-CP advertising) 30,000 0 0 (30,000) 0.00% Total Recurring Revenues 48,281,800 3,022,218 27,312,861 (20,968,939) 56.57% Expenditures City Council 622,187 35,304 368,370 253,817 59.21% City Manager 997,882 74,159 588,721 409,161 59.00% City Attorney 707,942 55,016 418,729 289,213 59.15% Public Safety 26,599,214 2,070,071 16,161,995 10,437,219 60.76% Deputy City Manager 277,187 19,557 191,657 85,530 69.14% Finance / IT 1,478,523 106,606 873,890 604,633 59.11% Human Resources 313,316 22,933 195,239 118,077 62.31% City Hall Operations and Maintenance 296,270 22,892 197,687 98,583 66.73% Community & Public Works - Engineering 1,971,731 125,545 1,000,718 971,013 50.75% Community & Public Works - Econ Dev 1,119,829 59,398 610,697 509,132 54.53% Community & Public Works - Bldg & Plan 2,420,414 175,169 1,477,731 942,683 61.05% Parks & Rec - Administration 352,227 26,560 200,616 151,611 56.96% Parks & Rec - Maintenance 917,500 81,501 540,791 376,709 58.94% Parks & Rec - Recreation 325,921 17,637 115,939 209,982 35.57% Parks & Rec - Aquatics 501,853 16,355 71,227 430,626 14.19% Parks & Rec - Senior Center 43,447 2,305 19,814 23,633 45.61% Parks & Rec - CenterPlace 965,359 63,896 461,225 504,134 47.78% General Government 1,321,111 72,330 549,956 771,155 41.63% Transfers out - #204 ('16 LTGO bond debt service) 401,450 33,454 267,633 133,817 66.67% Transfers out - #309 (park capital projects) 160,000 13,333 106,667 53,333 66.67% Transfers out - #311 (Pavement Preservation) 982,023 81,835 654,682 327,341 66.67% Transfers out - #501 (CenterPlace kitchen reserve) 36,600 3,050 24,400 12,200 66.67% Transfers out - #502 (insurance premium) 410,000 34,167 273,333 136,667 66.67% Total Recurring Expenditures 43,221,986 3,213,075 25,371,718 17,850,268 58.70% Recurring Revenues Over (Under) Recurring Expenditures 5,059,814 (190,856) 1,941,144 (3,118,670) Page 6 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 #001 - GENERAL FUND - continued NONRECURRING ACTIVITY Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget Revenues Potential Settlement Proceeds 0 0 0 0 0.00% Grant Proceeds 70,000 0 17,039 (52,961) 24.34% Miscellaneous 0 0 0 0 0.00% Total Nonrecurring Revenues 70,000 0 17,039 (52,961) 24.34% Expenditures Public Safety (carpet & workstation replacement) 15,000 0 0 15,000 0.00% Public Safety (full facility generator) 0 0 86,109 (86,109) 0.00% Public Safety (SV Police Athletic League Grant) 0 0 1,263 (1,263) 0.00% City Hall Chambers (east wall repairs) 0 6,706 205,630 (205,630) 0.00% Building(equipmentfornewcodeenfofficer) 13,700 0 0 13,700 0.00% Community & Public Works (Appleway Trail ED Sti 0 2,270 27,556 (27,556) 0.00% Community & Public Works (Housing Action Plan) 0 8,186 9,815 (9,815) 0.00% Parks & Rec (CenterPlace carpeting) 9,500 0 0 9,500 0.00% General Government (City Hall generator) 0 0 250 (250) 0.00% General Government - IT capital replacements 190,000 0 85,054 104,946 44.77% Gen Gov (Covid-19 Emergency Social Serv.) 0 0 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 17,161 448,675 1,309,525 25.52% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (1,688,200) (17,161) (431,636) 1,256,564 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 3,371,614 (208,017) 1,509,507 Beginning fund balance 37,427,218 37,427,218 Ending fund balance 40,798,832 38,936,725 (1,862,107) Page 7 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 SPECIAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget Revenues Telephone Utility Tax 1,521,000 120,922 844,539 (676,461) 55.53% Motor Vehicle Fuel (Gas) Tax 2,046,700 138,349 986,276 (1,060,424) 48.19% Multimodal Transportation 131,500 0 32,965 (98,535) 25.07% Right -of -Way Maintenance Fee 70,000 0 6,870 (63,130) 9.81% Investment Interest 17,000 112 635 (16,365) 3.73% Miscellaneous Revenue 10,000 0 344 (9,656) 3.44% Total Recurring Revenues 3,796,200 259,383 1,871,629 (1,924,571) 49.30% Expenditures Wages / Benefits / Payroll Taxes 1,059,613 62,810 613,668 445,945 57.91 % Supplies 146,050 7,733 89,794 56,256 61.48% Services & Charges 2,426,467 538,884 1,327,923 1,098,544 54.73% Snow Operations 543,776 4,972 470,202 73,574 86.47% Intergovernmental Payments 922,000 80,392 319,423 602,577 34.64% Transfers out - #501 (non -plow vehicle rental) 14,500 1,208 9,667 4,833 66.67% Transfers out - #501 (plow replace) 48,500 4,042 32,333 16,167 66.67% Total Recurring Expenditures 5,160,906 700,041 2,863,010 2,297,896 55.47% Recurring Revenues Over (Under) Recurring Expenditures (1,364,706) (440,658) (991,380) 373,326 NONRECURRING ACTIVITY Revenues Insurance Proceeds (traffic signal cabinet) Transfers in - #312 0 2,599 3,857 3,857 0.00% 1,364,706 113,726 909,804 (454,902) 66.67% Total Nonrecurring Revenues 1,364,706 116,325 913,661 (451,045) 66.95% Expenditures 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 1,364,706 116,325 906,519 (458,187) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 0 (324,333) (84,861) (84,861) Beginning fund balance 556,265 556,265 Ending fund balance 556,265 471,404 #103 - PATHS & TRAILS Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest 8,600 584 4,160 (4,440) 48.37% 400 3 59 (341) 14.64% Total revenues 9,000 587 4,218 (4,782) 46.87% Expenditures Capital Outlay 0 0 0 0 0.00% Total expenditures 0 0 0 0 0.00% Revenues over (under) expenditures 9,000 587 4,218 Beginning fund balance 14,115 14,115 Ending fund balance 23,115 18,334 (4,782) Page 8 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 SPECIAL REVENUE FUNDS - continued Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget #104 - TOURISM FACILITIES HOTEL/MOTEL TAX FUND Revenues Tourism Facilities Hotel/Motel Tax 420,000 27,155 137,488 (282,512) 32.74% Investment Interest 24,000 528 10,155 (13,845) 42.31% Transfers in - #105 0 0 0 0 0.00% Total revenues Expenditures Capital Expenditures Total expenditures 444,000 27,684 147,643 (296,357) 33.25% 0 0 0 0 0.00% 0 0 0 0 0.00% Revenues over (under) expenditures 444,000 27,684 147,643 (296,357) Beginning fund balance 2,690,945 2,690,945 Ending fund balance 3,134,945 2,838,587 #105 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax Investment Interest Total revenues 650,000 41,836 217,244 (432,756) 33.42% 6,000 126 2,227 (3,773) 37.12% 656,000 41,961 219,472 (436,528) 33.46% 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 12,279 63,081 731,919 7.93% Total expenditures 825,000 12,279 63,081 761,919 Revenues over (under) expenditures (169,000) 29,682 156,390 (1,198,447) Beginning fund balance 518,240 518,240 Ending fund balance 349,240 674,630 7.65% #106 - SOLID WASTE Revenues Solid Waste Administrative Fees 225,000 12,999 135,629 89,371 60.28% Solid Waste Road Wear Fee 1,500,000 151,926 843,658 656,342 56.24% Investment Interest 12,000 276 6,680 5,320 55.67% Total revenues 1,737,000 165,201 985,967 751,033 56.76% Expenditures Transfers out - #311 1,500,000 0 0 1,500,000 0.00% Education & Contract Administration 237,000 3,677 46,476 190,524 19.61 % Total expenditures 1,737,000 3,677 46,476 1,690,524 2.68% Revenues over (under) expenditures 0 161,524 939,492 (939,492) Beginning fund balance 540,182 540,182 Ending fund balance 540,182 1,479,674 #107 - PEG FUND Revenues Comcast PEG Contribution Investment Interest 79,000 0 38,851 40,149 49.18% 0 31 504 (504) 0.00% Total revenues 79,000 31 39,355 39,645 49.82% 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) 31 38,024 (44,024) Beginning fund balance 128,255 128,255 Ending fund balance 122,255 166,279 Page 9 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 SPECIAL REVENUE FUNDS - continued Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget #108 - AFFORDABLE & SUPPORTIVE HOUSING TAX FUND Revenues Affordable & Supportive Housing Tax Investment Interest 0 0 21,343 51,968 (51,968) 0.00% 10 20 (20) 0.00% Total revenues 0 21,353 51,988 (51,988) 0.00% Expenditures Affordable & Supportive Housing Program 0 0 0 0 0.00% Total expenditures 0 0 0 0 0.00% Revenues over (under) expenditures 0 21,353 51,988 (51,988) Beginning fund balance 0 0 Ending fund balance 0 51,988 #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest Transfers in 0 0 o o 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 5 1,132 (4,268) 20.97% Transfers in - #001 0 0 0 0 0.00% Grant Proceeds - Windstorm Cleanup 0 0 0 0 0.00% Subtotal revenues 5,400 5 1,132 (4,268) 20.97% 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) 5 1,132 (504,268) Beginning fund balance 23,336 23,336 Ending fund balance (471,264) 24,468 Page 10 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 DEBT SERVICE FUNDS Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget #204 - DEBT SERVICE FUND Revenues Spokane Public Facilities District 459,500 0 84,750 (374,750) 18.44% Transfers in - #001 401,450 33,454 267,633 (133,817) 66.67% Transfers in - #301 80,375 6,698 53,583 (26,792) 66.67% Transfers in - #302 80,375 6,698 53,583 (26,792) 66.67% Total revenues 1,021,700 46,850 459,550 (562,150) 44.98% Expenditures Debt Service Payments - CenterPlace 459,500 0 84,750 374,750 Debt Service Payments - Roads 160,750 0 10,375 150,375 Debt Service Payments -'16 LTGO Bond 401,450 0 118,225 283,225 18.44% 6.45% 29.45% Total expenditures 1,021,700 0 213,350 808,350 Revenues over (under) expenditures 0 46,850 246,200 (1,370,500) Beginning fund balance 0 0 Ending fund balance 0 246,200 20.88% Page 11 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 CAPITAL PROJECTS FUNDS #301 - CAPITAL PROJECTS FUND Revenues REET 1 - Taxes Investment Interest Total revenues Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget 1,000,000 164,779 838,754 (161,246) 83.88% 35,000 625 12,567 (22,433) 35.91% 1,035,000 165,405 851,321 (183,679) 82.25% Expenditures Transfers out - #204 80,375 6,698 53,583 26,792 66.67% Transfers out - #303 1,089,148 0 109,287 979,861 10.03% Transfers out - #311 (pavement preservation) 772,639 0 0 772,639 0.00% Transfers out - #314 49,041 0 128,133 (79,092) 261.28% Total expenditures 1,991,203 6,698 291,004 1,700,199 14.61% Revenues over (under) expenditures (956,203) 158,707 560,317 (1,883,878) Beginning fund balance 2,798,194 2,798,194 Ending fund balance 1,841,991 3,358,511 #302 - SPECIAL CAPITAL PROJECTS FUND Revenues REET 2 - Taxes Investment Interest 1,000,000 164,779 838,754 (161,246) 83.88% 35,000 955 19,122 (15,878) 54.63% Total revenues 1,035,000 165,735 857,876 (177,124) 82.89% Expenditures Transfers out - #204 80,375 6,698 53,583 26,792 66.67% Transfers out - #303 404,318 0 63,214 341,104 15.63% Transfers out - #311 (pavement preservation) 772,638 0 0 772,638 0.00% Total expenditures 1,257,331 6,698 116,797 1,140,534 9.29% Revenues over (under) expenditures (222,331) 159,037 741,079 (1,317,658) Beginning fund balance 4,391,870 4,391,870 Ending fund balance 4,169,539 5,132,948 Page 12 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 CAPITAL PROJECTS FUNDS -continued Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget #303 STREET CAPITAL PROJECTS FUND Revenues Developer Contribution 110,499 0 462,415 351,916 418.48% Grant Proceeds 6,596,718 (943) 1,267,822 (5,328,896) 19.22% Transfers in - #301 1,089,148 0 109,287 (979,861) 10.03% Transfers in - #302 404,318 0 63,214 (341,104) 15.63% Transfers in - #312 114,512 0 51,435 (63,077) 44.92% Investment Interest 0 0 0 0 0.00% Total revenues 8,315,195 (943) 1,954,173 (6,361,022) 23.50% Expenditures 205 Sprague/Barker Intersection Improvement 195,499 14,133 80,680 114,819 41.27% 249 Sullivan & Wellesley Intersection 100,000 3,173 53,671 46,329 53.67% 259 North Sullivan ITS Project 810,232 19,527 538,111 272,121 66.41% 267 Mission SW - Bowdish to Union 19,852 0 134 19,718 0.67% 273 Barker/I-90 Interchange 90,000 981 77,865 12,135 86.52% 275 Barker Rd Widening - River to Euclid 3,729,143 34,101 241,113 3,488,030 6.47% 276 Barker Rd Widening - Euclid to Trent 0 0 29,797 (29,797) 0.00% 285 Indiana Ave Pres - Evergreen to Sullivan 300,000 0 234,374 65,626 78.12% 291 Adams Sidewalk Infill Project 444,645 714 275,955 168,690 62.06% 292 Mullen Preservation: Broadway -Mission 0 0 4,822 (4,822) 0.00% 293 2018 CSS Citywide Reflective Signal BP 99,000 937 2,450 96,550 2.47% 294 Citywide Reflective Post Panels 47,775 4,082 23,647 24,128 49.50% 295 Garland Avenue Extension 150,000 3,228 942,298 (792,298) 628.20% 299 Argonne Rd Concrete Pvmt Indiana to Mont 32,000 7,646 47,098 (15,098) 147.18% 300 Pines & Mission Intersection Improvements 516,000 6,379 40,951 475,049 7.94% 301 Park & Mission Intersection Improvements 0 5,466 30,447 (30,447) 0.00% 302 Ella Sidewalk: Broadway to Alki 371,760 5,512 321,110 50,650 86.38% 303 S. Conklin Road Sidewalk 124,125 1,385 106,284 17,841 85.63% 310 Sullivan Rd Overcrossing UP RR Deck Rep. 0 9,386 14,574 (14,574) 0.00% 313 Barker Road/Union Pacific Crossing 0 4,744 25,629 (25,629) 0.00% 318 Wilbur Sidewalk: Boone to Mission 0 2,417 4,916 (4,916) 0.00% Contingency 1,000,000 0 0 1,000,000 0.00% Total expenditures 8,030,031 123,812 3,095,926 Revenues over (under) expenditures 285,164 (124,755) (1,141,753) Beginning fund balance 67,402 67,402 Ending fund balance 352,566 (1,074,351) 4,934,105 (11,295,126) 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. 38.55% Page 13 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 CAPITAL PROJECTS FUNDS -continued #309 - PARKS CAPITAL PROJECTS FUND Revenues Grant Proceeds Transfers in - #001 Transfers in - #312 Investment Interest Miscellaneous Revenues Total revenues Budget Year Elapsed = 2020 66.67% 2020 Actual Actual through Budget % of Budget August August 31 Remaining Budget 2,500 0 1,075,364 1,072,864 43014.56% 1,660,000 13,333 106,667 (1,553,333) 6.43% 7,500 0 219,123 211,623 2921.64% 0 0 0 0 0.00% 0 0 (0) (0) 0.00% 1,670,000 13,333 1,401,154 (268,846) 83.90% Expenditures 268 Appleway Trail - Evergreen to Sullivan 5,000 246,709 1,367,859 (1,362,859) 27357.18% 296 Browns Park 2019 Construction Improvements 5,000 4,172 (49,206) 54,206-984.13% 304 CenterPlace West Lawn Phase 2 1,500,000 524,017 1,623,270 (123,270) 108.22% 305 CenterPlace Roof Repair 0 176,002 218,306 (218,306) 0.00% 314 Balfour Park Frontage Improvements 0 5,059 8,273 (8,273) 0.00% 315 Brown's Park 2020 Improvements 0 3,098 9,308 (9,308) 0.00% 316 Balfour Park Improvements - Phase 1 0 0 10,947 (10,947) 0.00% Total expenditures 1,510,000 959,057 3,188,756 Revenues over (under) expenditures 160,000 (945,723) (1,787,603) Beginning fund balance 78,627 78,627 Ending fund balance 238,627 (1,708,976) #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest (1,678,756) 1,409,910 211.18% 17,000 160 3,165 (13,835) 18.61% Total revenues 17,000 160 3,165 (13,835) 18.61% Expenditures Transfers out 0 0 0 0 0.00% Total expenditures 0 0 0 0 0.00% Revenues over (under) expenditures 17,000 160 3,165 (13,835) Beginning fund balance 855,985 855,985 Ending fund balance 872,985 859,150 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 14 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 CAPITAL PROJECTS FUNDS -continued Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget #311 - PAVEMENT PRESERVATION FUND Revenues Transfers in - #001 982,023 81,835 654,682 (327,341) 66.67% 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 0 84,251 73,663 795.72% Developer Contribution 0 0 0 0 0.00% Investment Interest 0 675 9,064 9,064 0.00% Total revenues 4,037,888 82,510 747,997 (3,289,891) 18.52% 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 0 470 (470) 0.00% 269 Evergreen - Mission Connector to Indiana 0 48 305 (305) 0.00% 284 Argonne Rd. Pres - Valleyway to Broadway 0 0 40 (40) 0.00% 285 Indiana Ave Pres - Evergreen to Sullivan 0 46,718 1,479,485 (1,479,485) 0.00% 286 Broadway Preservation: Havana to Fancher 0 78 78 (78) 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 1,357 5,086 (5,086) 0.00% 297 2019 SCWD#3 Street Preservation 0 0 (3,199) 3,199 0.00% 309 Local Access Streets: Barker Homes 0 994 33,665 (33,665) 0.00% 320 Sullivan Preservation: Sprague-8th 0 2,745 2,745 (2,745) 0.00% Total expenditures 4,267,523 51,939 1,533,509 2,734,014 35.93% Revenues over (under) expenditures (229,635) 30,571 (785,511) (6,023,905) Beginning fund balance 4,425,201 4,425,201 Ending fund balance 4,195,566 3,639,690 #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 2,197 51,632 (48,368) 51.63% Total revenues 100,000 2,197 51,632 (48,368) 51.63% Expenditures Transfers out - #101 1,364,706 113,726 909,804 454,902 66.67% Transfers out - #303 114,512 0 51,435 63,077 44.92% Transfers out - #309 7,500 0 219,123 (211,623) 2921.64% Transfers out - #314 64,192 0 61 64,131 0.09% Land Acquisitions 0 0 4,110 (4,110) 0.00% Total expenditures 1,550,910 113,726 1,184,532 366,378 76.38% Revenues over (under) expenditures (1,450,910) (111,528) (1,132,901) (414,746) Beginning fund balance 12,936,816 12,936,816 Ending fund balance 11,485,906 11,803,916 Page 15 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 CAPITAL PROJECTS FUNDS -continued #313 - CITY HALL CONSTRUCTION FUND Revenues Investment Interest Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget 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 2,199,748 (10,609,003) 17.17% Investment Interest 0 0 300 300 0.00% Transfers in -#301 49,041 0 128,133 79,092 261.28% Transfers in -#312 64,192 0 61 (64,131) 0.09% Total revenues 12,921,984 0 2,328,242.15 Expenditures 143 Barker Rd/BNSF Grade Separation 11,475,292 492,078 2,440,424 223 Pines Rd Underpass 1,562,500 6,706 452,923 311 Sullivan Rd./SR 290 Interchange Project 0 3,475 9,164 (10,593,742) 9,034,868 1,109,577 (9,164) 18.02% 21.27% 28.99% 0.00% Total expenditures 13,037,792 502,259 2,902,511 Revenues over (under) expenditures (115,808) (502,259) (574,269) Beginning fund balance 1,008,638 1,008,638 Ending fund balance 892,830 434,369 10,135,281 (20,729,023) 22.26% Page 16 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees Investment Interest Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget 1,900,000 11,783 1,121,249 (778,751) 59.01% 40,000 469 8,827 (31,173) 22.07% Total Recurring Revenues 1,940,000 12,253 1,130,076 (809,924) 58.25% Expenditures Wages / Benefits / Payroll Taxes 519,582 32,922 270,357 249,225 52.03% Supplies 14,750 1,092 36,777 (22,027) 249.33% Services & Charges 1,298,153 102,770 553,265 744,888 42.62% Intergovernmental Payments 37,500 0 19,536 17,964 52.10% Vehicle Rentals - #501 14,000 1,167 9,333 4,667 66.67% Total Recurring Expenditures 1,883,985 137,951 889,268 994,717 47.20% Recurring Revenues Over (Under) Recurring Expenditures 56,015 (125,699) 240,808 184,793 NONRECURRING ACTIVITY Revenues Grant Proceeds 59,828 0 304 (59,524) 0.51% Total Nonrecurring Revenues 59,828 0 304 (59,524) 0.51% Expenditures Capital - various projects 500,000 0 9,285 490,715 1.86% 285 Indiana Ave Pres - Evergreen to Sullivan 0 0 18,087 (18,087) 0.00% 302 Ella Sidewalk: Broadway to Alki 0 20 60,590 (60,590) 0.00% 303 S. Conklin Road Sidewalk 0 34 29,043 (29,043) 0.00% 309 Local Access Streets: Barker Homes 0 731 2,316 (2,316) 0.00% Watershed Studies 80,000 0 33,470 46,530 41.84% Stormwater Comprehensive Plan 100,000 0 0 100,000 0.00% Total Nonrecurring Expenditures 680,000 785 152,791 527,209 22.47% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (620,172) (785) (152,488) 467,684 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (564,157) (126,484) 88,321 652,478 Beginning working capital 2,180,773 2,180,773 Ending working capital 1,616,616 2,269,094 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 0 203,098 (256,902) 44.15% Grant Proceeds 349,000 0 0 (349,000) 0.00% Investment Interest 20,000 398 7,825 (12,175) 39.13% Total revenues 829,000 398 210,924 (618,076) 25.44% Expenditures Capital - various projects 500,000 21,196 194,425 305,575 38.88% Total expenditures 500,000 21,196 194,425 305,575 38.88% Revenues over (under) expenditures 329,000 (20,798) 16,499 (923,652) Beginning working capital 2,118,299 2,118,299 Ending working capital 2,447,299 2,134,798 Page 17 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Budget to Actual Comparison of Revenues and Expenditures For the Eight -Month Period Ended August 31, 2020 INTERNAL SERVICE FUNDS Budget Year Elapsed = 2020 66.67% 2020 Budget Actual Actual through Budget August August 31 Remaining % of Budget #501 - ER&R FUND Revenues Interfund vehicle lease - #001 28,000 2,333 18,667 (9,333) 66.67% Interfund vehicle lease - #101 14,500 1,208 9,667 (4,833) 66.67% Interfund vehicle lease - #101 (plow replace) 48,500 4,042 32,333 (16,167) 66.67% Interfund vehicle lease - #402 14,000 1,167 9,333 (4,667) 66.67% Transfers in - #001 (CenterPlace kitchen reserve) 36,600 3,050 24,400 (12,200) 66.67% Transfers in - #001 (Code Enforcement Vehicle) 30,000 0 0 (30,000) 0.00% Investment Interest 19,000 267 5,240 (13,760) 27.58% Total revenues 190,600 12,067 99,640 (90,960) 52.28% Expenditures Wages / Benefits / Payroll Taxes 0 3,295 11,314 (11,314) 0.00% Small tools & minor equipment 20,000 0 0 20,000 0.00% Vehicle purchase 30,000 0 27,231 2,769 90.77% Snow plow purchase 235,000 0 125,590 109,410 53.44% Total expenditures 285,000 3,295 164,134 120,866 57.59% Revenues over (under) expenditures (94,400) 8,772 (64,495) (211,826) Beginning working capital 1,496,093 1,496,093 Ending working capital 1,401,693 1,431,599 #502 - RISK MANAGEMENT FUND Revenues Investment Interest Transfers in - #001 0 38 105 105 0.00% 410,000 34,167 273,333 (136,667) 66.67% Total revenues 410,000 34,205 273,438 (136,562) 66.69% Expenditures Auto & Property Insurance 410,000 0 337,987 72,013 82.44% Unemployment Claims 0 2,184 6,713 (6,713) 0.00% Total expenditures 410,000 2,184 344,700 65,300 84.07% Revenues over (under) expenditures 0 32,021 (71,261) (201,862) Beginning working capital 276,004 Ending working capital 276,004 276,004 204,742 SUMMARY FOR ALL FUNDS Total of Revenues for all Funds Per Revenue Status Report Difference Total of Expenditures for all Funds Per Expenditure Status Report 90,026,301 90,026,301 4,188,918 4,188,918 41,934,457 41,934,457 89,713,567 89,713,567 5,875,832 5,875,832 43,073,137 43,073,137 Total Capital expenditures (included in total expenditures) 28,000,346 1,659,047 11,205,861 Page 18 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Investment Report For the Eight -Month Period Ended August 31, 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 108 Affordable & Supportive Housing 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 9/21/2020 LGI P" NW Bank CD #2068 UMPQUA CD #0689 Total Investments $ 68,900,816.28 $ 2, 920, 508.28 (2, 800, 000.00) 14, 927.64 3, 075, 557.68 $ 2,101, 932.42 $ 74, 078, 306.38 0.00 0.00 2,920,508.28 0.00 0.00 (2, 800, 000.00) 0.00 0.00 14, 927.64 $ 69,036,252.20 $ 3,075,557.68 $ 2,101,932.42 $ 74,213,742.30 matures: 7/23/2021 rate: 0.40% 11/15/2020 1.75% Balance Earnings Current Period Year to date Budget $ 36,912,892.06 517,263.18 15,782.53 2,443,617.94 580,759.95 1, 277, 024.36 143,142.52 44,753.89 0.00 5, 500, 000.00 21,063.48 2,891,197.65 4,418,734.82 0.00 0.00 739,604.99 3,122, 588.47 10,161,483.73 0.00 0.00 2,170, 962.77 1, 842, 867.70 1,233,748.40 176,253.86 $ 8,051.38 111.85 3.41 528.38 125.58 276.13 30.95 9.68 0.00 0.00 4.55 625.16 955.46 0.00 0.00 159.92 675.19 2,197.21 0.00 0.00 469.43 398.48 266.77 38.11 192, 533.71 634.71 58.54 10,154.76 2,227.42 6,679.98 504.20 19.87 0.00 0.00 1,132.44 12, 567.43 19,122.05 0.00 0.00 3,164.53 9,064.35 51,631.59 0.00 300.36 8,827.42 7,825.46 5,239.62 104.99 $ 700,000.00 17, 000.00 400.00 24, 000.00 6,000.00 12, 000.00 0.00 0.00 0.00 0.00 5,400.00 35, 000.00 35, 000.00 0.00 0.00 17, 000.00 0.00 100, 000.00 0.00 0.00 40, 000.00 20, 000.00 19, 000.00 0.00 $ 74,213,742.30 $ 14,927.64 $ 331,793.43 $ 1,030,800.00 Page 19 P:\Finance\Finance Activity Reports\Council Monthly Reports\2020\2020 08 31 CITY OF SPOKANE VALLEY, WA Sales Tax Receipts For the Eight -Month Period Ended August 31, 2020 Month Received 2019 2020 9/21/2020 Difference 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% May 2,208,350.09 1,847,551.89 (360,798.20) (16.34%) June 2,200,987.91 1,875,335.44 (325,652.47) (14.80%) July 2,333,320.72 2,570,769.98 237,449.26 10.18% August 2,530,196.67 2,677,467.88 147,271.21 5.82% 15, 423, 894.55 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 15,443,242.40 27, 382, 591.70 15, 443, 242.40 19,347.85 0.13% 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 20 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 January February March April May June July 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1,460,548 990,157 1,015,762 1,284,180 1,187, 737 1,248,218 1,332,834 1,589,887 1,009,389 1,067,733 1,277,621 1,174, 962 1,290,976 1,302,706 1,671,269 1,133, 347 1,148, 486 1,358,834 1,320,449 1,389,802 1,424,243 1,677,887 1,170, 640 1,201,991 1,448,539 1,400,956 1,462,558 1,545,052 1,732,299 1,197, 323 1,235,252 1,462,096 1,373,710 1,693,461 1,718,428 1,863,225 1,316,682 1,378,300 1,640,913 1,566,178 1,641,642 1,776,653 1,992,273 1,369,740 1,389,644 1,737,933 1,564,119 1,751,936 1,935,028 2,078,412 1,536,252 1,564,282 1,926,551 1,762,119 1,871,077 2,053,961 2,240,908 1,648,657 1,549,275 1,955,470 1,946,112 2,067,987 2,232,342 8/31/2020 2019 to 2020 Difference ok 2,253,852 12,944 0.58% 1,776,898 128,241 7.78% 1,687,355 138,080 8.91% 1,627,596 (327,874) (16.77%) 1,651,937 (294,175) (15.12%) 2,291,842 223,855 10.82% 2,368,495 136,153 6.10% Collected to date 8,519,436 8,713,274 9,446,430 9,907,623 10,412,569 11,183,593 11,740,673 12,792,654 13,640,751 13,657,975 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 13,657,975 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 (10,974,925) 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 July 59.95% 61.32% 61.94% 58.31% 59.07% 60.52% 59.14% 61.26% 59.52% 55.45% % of actual total collected through July 57.37% 56.48% 56.95% 56.81% 57.18% 56.24% 55.67% 56.50% 56.36% n/a Chart Reflecting History of Collections through the Month of July 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 1 July 1 17,224 0.13% IFJuly • June • May • April • March • February • January 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Page 21 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 - Actual for the years 2011 through 2020 January February March April May June July 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 22,212 22,792 24,611 38,230 33,791 41,403 49,312 21,442 21,549 25,655 52,130 37,478 43,971 52,819 24,185 25,975 27,739 40,979 40,560 47,850 56,157 25,425 26,014 29,384 48,246 41,123 52,618 61,514 27,092 27,111 32,998 50,455 44,283 56,975 61,809 31,887 27,773 34,330 52,551 50,230 55,060 65,007 27,210 26,795 31,601 52,242 50,112 60,637 69,337 28,752 28,878 31,906 57,664 51,777 62,048 71,865 31,865 32,821 40,076 59,117 53,596 73,721 84,628 36,203 31,035 37,395 24,959 16,906 28,910 41,836 8/31/2020 2019 to 2020 Difference 4,338 13.61% (1,786) (5.44%) (2,681) (6.69%) (34,158) (57.78%) (36,690) (68.46%) (44,811) (60.78%) (42,792) (50.56%) Total Collections 232,352 255,044 263,446 284,324 300,723 316,838 317,934 332,890 375,824 217,244 (158,580) (42.20%) 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 457,603 490,004 518,672 549,267 581,237 596,374 615,980 646,976 743,851 217,244 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 (432,756) 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 July 48.41% 59.31% 53.76% 53.65% 54.68% 54.63% 54.82% 57.39% 62.64% 33.42% % of actual total collected through July 50.78% 52.05% 50.79% 51.76% 51.74% 53.13% 51.61% 51.45% 50.52% n/a Chart Reflecting History of Collections through the Month of July 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1 ■ July 2011 2012 2013 2014 2015 2016 2017 2018 i 2019 2020 • July ■ June • May ■ April • March • February ■ January Page 22 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 July Actual for the years 2011 through 2020 January February March April May June July Collected to date 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 64,128 36,443 95,880 79,681 124,692 81,579 79,629 46,359 56,115 71,730 86,537 111,627 124,976 101,049 56,898 155,226 72,172 90,377 116,165 139,112 128,921 61,192 67,049 81,724 105,448 198,870 106,676 208,199 96,141 103,508 165,868 236,521 165,748 347,421 217,375 104,446 83,583 220,637 205,654 192,806 284,897 248,899 153,661 124,514 282,724 169,060 202,734 248,768 449,654 239,437 146,892 310,562 218,842 646,397 277,424 302,941 120,809 199,209 193,913 347,528 263,171 465,044 327,636 212,512 242,927 203,774 197,928 258,784 329,801 234,040 9/24/2020 2019 to 2020 Difference 91,703 75.91% 43,718 21.95% 9,861 5.09% (149,600) (43.05%) (4,387) (1.67%) (135,243) (29.08%) (93,596) (28.57%) 562,033 598,392 758,871 829,157 1,332,582 1,340,924 1,631,115 2,142,495 1,917,310 1,679,766 (237,544) (12.39%) 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 1,679,766 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 2,000,000 Actual over (under) budget 180,751 310,707 346,650 467,429 731,578 353,822 1,007,573 800,432 533,549 (320,234) 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 July % of actual total collected through July 72.06% 68.39% 77.83% 75.38% 95.18% 67.05% 81.56% 71.42% 68.48% 83.99% 58.50% 50.47% 57.42% 52.90% 62.52% 56.97% 54.23% 56.38% 57.52% n/a Chart Reflecting History of Collections through the Month of July 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 July 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 • July ■ June • May • April • March • February ■ January Page 23 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 24 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 - July For the years 2011 through 2020 January February March April May June July 2011 2012 2013 I 2014 2015 2016 2017 2018 2019 2020 154,792 146,353 141,849 165,019 154,700 158,351 165,398 159,607 135,208 144,297 153,546 144,670 159,827 160,565 146,145 145,998 135,695 156,529 151,595 167,479 155,348 152,906 148,118 131,247 156,269 156,850 161,965 157,805 152,598 145,455 140,999 157,994 156,259 164,872 168,205 163,918 163,037 145,537 167,304 171,829 157,737 177,427 150,654 164,807 138,205 168,000 174,211 174,838 177,019 162,359 175,936 139,826 168,796 193,986 144,308 194,267 148,530 181,823 131,009 144,080 185,669 175,985 169,733 152,686 170,461 146,280 90,589 130,168 128,359 138,932 8/31/2020 2019 to 2020 Difference ok 4,156 2.80% (11,362) (6.25%) 15,271 11.66% (53,491) (37.13%) (55,501) (29.89%) (47,626) (27.06%) (30,801) (18.15%) Collected to date 1,086,462 1,057,720 1,058,789 1,065,160 1,086,382 1,146,789 1,147,734 1,179,478 1,136,829 957,475 (179,354) (15.78%) 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 2,026,696 957,475 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) (1,097,825) Total actual collections as a % of total budget 99.08% 96.91 % 99.95% 100.65% 104.07% 100.05% 99.60% 100.53% 99.37% n/a % change in annual total collected 68.90% (0.58%) 1.14% 0.56% 3.48% 3.63% 1.31% 1.54% (2.19%) n/a % of budget collected through 57.94% 55.50% 56.65% 57.07% 58.17% 56.96% 56.02% 57.23% 55.74% 46.59% % of actual total collected through July 58.48% 57.27% 56.68% 56.70% 55.89% 56.93% 56.24% 56.92% 56.09% n/a Chart Reflecting History of Collections through the Month of July 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1 July ■ July ■ June • May April March ■ February January 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Page 25 P:\Finance\Finance Activity Reports\Tax Revenue\Telephone Tax\2020\telephone utility tax collections 2020 CITY OF SPOKANE VALLEY, WA Telephone Utility Tax Collections - July For the years 2011 through 2020 January February March April May June July 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 241,357 230,366 245,539 238,561 236,985 239,013 244,191 193,818 261,074 234,113 229,565 227,469 234,542 226,118 217,478 216,552 223,884 214,618 129,270 293,668 213,078 210,777 205,953 208,206 206,038 210,010 210,289 205,651 177,948 212,845 174,738 214,431 187,856 187,412 190,984 182,167 173,971 177,209 171,770 174,512 170,450 174,405 162,734 163,300 162,536 157,285 161,506 156,023 157,502 130,196 164,060 158,416 146,519 149,434 150,780 147,281 136,615 132,538 138,727 126,455 135,704 129,602 130,723 123,292 122,448 121,938 120,016 118,018 117,905 120,922 9/24/2020 2019 to 2020 Difference (13,323) (9.75%) (10,090) (7.61%) (16,789) (12.10%) (6,439) (5.09%) (17,686) (13.03%) (11,697) (9.03%) (9,801) (7.50%) Collected to date 1,676,012 1,606,699 1,508,548 1,456,924 1,346,214 1,224,484 1,120,886 1,046,686 930,364 844,539 (85,825) (9.22%) 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 1,564,152 844,539 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) (676,461) 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 July 55.87% 53.56% 52.02% 52.98% 52.48% 52.33% 56.04% 55.09% 58.15% 55.53% % of actual total collected through July 56.22% 58.74% 58.87% 59.20% 59.64% 59.17% 59.22% 59.53% 59.48% n/a Chart Reflecting History of Collections through the Month of July 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 July 1 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 . July • June • May • April • March • February ■ January Page 26