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2020, 10-13 Regular MeetingAGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL FORMAT Tuesday, October 13, 2020 6:00 p.m. Remotely via ZOOM Meeting 10210 E Sprague Avenue Council Requests Please Silence Your Cell Phones During Council Meeting NOTE: In response to Govemor 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physical public attendance at Spokane Valley Council meetings are suspended until the Governor's order has been rescinded or amended.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, effective immediately and until further notice, a live feed of the meeting will be available on our website and on Comcast channel 14. Public comments will 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 INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS COMMITTEE, BOARD, LIAISON SUMMARY REPORTS MAYOR'S REPORT PROCLAMATION GENERAL PUBLIC COMMENT OPPORTUNITY 11l: Use the link above to sign up for oral public comments and indicate if you want to speak at General Public Comment Opportunity [1] or [2]. Citizens may only speak at one or the other, but not both. If there is no indication of which comment opportunity, you will be placed in the first. The link will guide you to directions to sign up for oral public comments. This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government. This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep the remarks civil. Remarks will be limited to three minutes per person. 1. CONSENT AGENDA: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Ajienda. a. Approval of claim vouchers on Oct. 13, 2020, Request for Council Action Form Total: $3,860,002.75 b. Approval of Payroll for Pay Period Ending September 30, 2020: $534,096.17 c. Approval of September 15, 2020 Council Meeting Minutes, Study Session Format d. Approval of September 22, 2020 Council Meeting Minutes, Formal Format e. Approval of September 29, 2020 Council Meeting Minutes, Study Session Format f. Approval of Resolution 20-014 Declaring Desmet Property as Surplus Council Agenda October 13, 2020 Page 1 of 2 NEW BUSINESS: 2. Second Reading Ordinance 20-012 Cable Code Amendment — Cary Driskell [public comment opportunity] 3. First Reading Ordinance 20-013 Nonconforming Use CTA 2020-0003 — Lori Barlow [no public comment opportunity] 4. First Reading Ordinance 20-014 Street Vacation STV 2020-0001 — Connor Lange [no public comment opportunity] 5. First Reading Ordinance 20-015 TDS Cable Franchise — Cary Driskell [public comment opportunity] GENERAL PUBLIC COMMENT OPPORTUNITY [21: Use the link above to sign up for oral public comments and indicate if you want to speak at General Public Comment Opportunity [1] or [2]. Citizens may only speak at one or the other, but not both. If there is no indication of which comment opportunity, you will be placed in the first. The link will guide you to directions to sign up for oral public comments. This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government. This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep the remarks civil. Remarks will be limited to three minutes per person. ADMINISTRATIVE REPORTS: 6. 2021 Preliminary Budget — Mark Calhoun 7. Advance Agenda — Mayor Wick CITY MANAGER COMMENTS ADJOURNMENT Council Agenda October 13, 2020 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 13, 2020 Check all that apply: ® consent ❑ old business AGENDA ITEM TITLE: Approval of the Following Vouchers: Department Director Approval: El new business public hearing VOUCHER 09/17/2020 09/21/2020 09/21/2020 09/23/2020 09/24/2020 09/29/2020 10/02/2020 10/02/2020 10/05/2020 LIST VOUCHER NUMBERS 51740-51776 8829-8830 5177-51780 7282; 7294; 7295; 7298; 7299; 7301 51781-51822 51823-51829; 10879195 51830-51833 51834-51878 8831 GRAND TOTAL: TOTAL AMOUNT $360,107.56 $710.00 $261,501.21 $89,752.65 $1,096,220.26 $1,767,689.08 $2,291.71 $280,659.28 $1,071.00 $3,860.002.75 Explanation of Fund Numbers found on Voucher Lists #001 - General Fund 001.011.000.511. City Council 001.013.000.513. City Manager 001.013.015.515. Legal 001 016.000. Public Safety 001.018.013.513. Deputy City Manager 001.018.014.514. Finance 001.018.016.518. Human Resources 001.040.041. Engineering 001.040.042. Economic Development 001.040.043. Building 001.076.000.576. Parks & Rec—Administration 001.076.300.576. Parks & Rec-Maintenance 001.076.301.571. Parks & Rec-Recreation 001.076.302.576. Parks & Rec- Aquatics 001.076.304.575. Parks & Rec- Senior Center 001.076.305.571. Parks & Rec-CenterPlace 001.090.000.511. General Gov't- Council related 001.090.000.514. General Gov't -Finance related 001.090.000.517. General Gov't -Employee supply 001.090.000.518. General Gov't- Centralized Serv. 001.090.000.519. General Gov't -Other Services 001.090.000.540. General Gov't -Transportation 001.090.000.550. General Gov't -Natural & Eco. 001.090.000.595. General Gov't -Pavement Preser. 001.090.000.560. General Gov't -Social Services 001.090.000.594 General Gov't -Capital Outlay Other Funds: 101 — Street Fund 103 — Paths & Trails 105 -- Hotel/Motel Tax 106 — Solid Waste 120 — CenterPIace Operating Reserve 121 — Service Level Stabilization Reserve 122 — Winter Weather Reserve 204 —Debt Service 301 — REET 1 Capital Projects 302 — REET 2 Capital Projects 303 — Street Capital Projects 309 — Parks Capital Grants 310 Civic Bldg. Capital Projects 311 — Pavement Preservation 312 — Capital Reserve 314 — Railroad Grade Separation Projects 402 — Stormwater Management 403 -- Aquifer Protection Area 501 —Equipment Rental & Replacement 502 — Risk Management RECOMMENDED ACTION OR MOTION: Move to approve attached list of claim vouchers. [Approved as part of the Consent Agenda, or may be removed and discussed separately.] STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: Voucher Lists vchlist Voucher List Page: 1 09/17/2020 3:15:40PM Spokane Valley Bank code: apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51740 9/17/2020 007136 AMAZON CAPITAL SERVICES INC 1 RWW-CKRR-7G4H 101.000.000.542 TIGER TOOL- HYDRAULIC WHEEL ST1. 1,900.95 Total: 1,900.95 51741 9/17/2020 002157 ELJAY OIL COMPANY 4305168 001.040.041.543 FUEL FOR MAINTENANCE SHOP 746.22 Total : 746.22 51742 9/17/2020 001232 FASTENAL CO 1DLEW152076 101.042.000.542 PPE - CCVID 19 338.73 Total : 338.73 51743 9/17/2020 002975 FREEDOM SALES AND SUPPLY LLC 2020500 101.042.000.543 SAFETY EQUIPMENT 91.29 Total : 91.29 51744 9/17/2020 002518 INLAND PACIFIC HOSE & FITTINGS 1052774 101.000.000.542 VEHICLE REPAIR & MAINT. SUPPLIES 75.47 Total: 75.47 51745 9/17/2020 002203 NAPAAUTO PARTS 0538-001686 101.042.000.542 VEHICLE REPAIR & MAINT. SUPPLIES -36.85 0538-003766 001.040.041.543 VEHICLE REPAIR & MAINT. SUPPLIES 72.58 0538-003947 001.040.041.543 VEHICLE REPAIR & MAINT. SUPPLIES 14.45 0538-004776 001.076.000.576 VEHICLE REPAIR & MAINT. SUPPLIES 56.62 0538-004815 001.076.000.576 VEHICLE REPAIR & MAINT. SUPPLIES 113.22 0538-004974 101.042.000.542 VEHICLE REPAIR & MAINT. SUPPLIES 158.23 0538-005099 101.042.000.542 VEHICLE REPAIR & MAINT SUPPLIES 81.13 0538-005185 001.040.043.558 VEHICLE REPAIR & MAINT. SUPPLIES 79.08 Total : 538.46 51746 9/17/2020 000662 NAT'L BARRICADE & SIGN CO 1007871 101.042.000.542 SAFETY SUPPLIES 26.08 Total: 26.06 51747 9/17/2020 002678 ORNAMENTAL GATEAND FENCE 9793 402.402.000.531 REPAIR SERVICE: MAINTENANCE SHC 327.70 Total : 327,70 51748 9/17/2020 005049 PEDERSON, MICHAEL ROY AUGUST 2020 101.042.000.542 DEAD ANIMAL REMOVAL 850.00 Total: 850.00 51749 9/17/2020 005968 PRECISE MRM LLC 200-1027222 402.402.000.531 DATA PLAN 250.00 Total: 250.00 Page: vchlist 09/17/2026 3:15:40PM Voucher List Spokane Valley Page: 2 Bank code: apbank Voucher Date Vendor Invoice Fund/Dept 51750 9/17/2020 007741 REFRIGERATION SUPPLIES DIST 51751 9/17/2020 002520 RWC GROUP 51752 9/17/2020 000709 SENSKE LAWN & TREE CARE INC. 51753 9/17/2020 000001 SPOKANE CO TREASURER 51754 9/17/2020 001969 SUNSHINE DISPOSAL 51755 9/17/2020 003318 TACOMASCREW PRODUCTS INC 51756 9/17/2020 006846 US LINEN & UNIFORM INC 51757 9/17/2020 007671 HORROCKS ENGINEERS INC 51758 9/17/2020 000683 DAVID EVANS &ASSOCIATES 51759 9/17/2020 000106 FEDEX 51760 9/17/2020 001875 STRATA INCORPORATED 16257642-00 127421N 10173497 51505502 1638874 24166197 24166918 24167601 2595762 2599423 2602951 2606421 57521 472373 7-100-93856 SP200248-IN 101.042.000.543 101.000.000.542 101.042.000.542 101.042.000.542 101.042.000.542 101.042.000.542 101.042.000.542 101.042.000.542 101.042.000.543 101.042.000.543 101.042.000.543 101.042.000.543 001.040.041.558 314.000.143.595 314.000.143.595 303.000.275.595 Description/Account Amount REPAIR & MAINTENANCE SUPPLIES 44.02 Total : 44.02 VEHICLE REPAIR & MAINTENANCE SU Total : 895 CONTRACT MAINTENANCE Total : WORK CREW INVOICE JULY 2020 Total : TRANSFER STATION CPWAUGUST 20;: Total : VEHICLE REPAIR & MAINTENANCE SU VEHICLE REPAIR & MAINTENANCE SU VEHICLE REPAIR & MAINTENANCE SU Total: SUPPLIES: MAINTENANCE SHOP SUPPLIES: MAINTENANCE SHOP SUPPLIES: MAINTENANCE SHOP SUPPLIES: MAINTENANCE SHOP Total: PROFESSIONAL SERVICES 0143-DESIGN SERVICES FED EX 8-12-2020 0275-MATERIALS TESTING 203.02 203.02 531.43 531.43 7,527.40 7,527.40 523.40 523.40 97.68 10.51 188.07 296.26 14.81 14.81 14.81 14.81 59.24 2,437.50 Total: 2,437.50 20,415.12 Total : 20,415.12 Total : 7.03 2,637.50 Total : 2,637.50 7.03 Page: 2 vchlist 09/17/2020 3:15:40PMVI Voucher List Spokane Valley Page: 3 Bank code: apbank Voucher Date Vendor Invoice 51761 9/17/2020 003274 EXCHANGE PUBLISHING LLC 51762 9/17/2020 001447 FREE PRESS PUBLISHING INC 51763 9/17/2020 002259 MENKE JACKSON BEYER LLP 51764 9/17/2020 007678 RANDALL DANSKIN PS 51765 9/17/2020 000101 CDW-G 51766 9/17/2020 004735 CITIES DIGITAL INC 51767 9/17/2020 000999 EASTERN WAATTORNEY SVC INC 51768 9/17/2020 002259 MENKE JACKSON BEYER LLP 51769 9/17/2020 004740 THOMSON REUTERS-WEST 51770 9/17/2020 000980 WESTERN SYSTEMS INC 51771 9/17/2020 007136 AMAZON CAPITAL SERVICES INC 578755 578756 578757 578758 578759 51238 51239 51240 480 133530 ZXN2990 ZXQ0893 49610 127855 499 842928061 0000044222 1443-CYX D-DMRG FundlDept 001.013.000.513 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 314.000.143.595 001.033.099.518 001.090.000.518 001.090.000.518 001.090.000.518 001.013.015.515 001.013.015.515 001.013.015.515 101.042.000.594 001.040.041.543 Description/Account Amount LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION PROFESSIONAL SERVICES PROFESSIONAL SERVICES GIS PLOTTER INK GIS PLOTTER INK Total: Total: Total: Total : Total: LASERFICHE ANNUAL SUPPORT AND I Total: PROFESSIONAL SERVICES - 1322 N BI Total : PROFESSIONAL SERVICES SUBSCRIPTION CHARGES CABINET - MISSION/BARKER Total : Total: Total : 26.07 76.63 99.54 81.37 101.12 384.73 90.10 121.55 96.90 308.55 3,958.00 3,958.00 2,750.00 2,750.00 449.01 149.67 596.68 11,783.04 11,783.04 45.00 45.00 230.00 230.00 838.43 838.43 16,522.95 16,522.95 VEHICLE REPAIR & MAINTENANCE SU 163.30 Page: 3 vch]ist 09/1712020 3:15:40PM Voucher List Page: 4 Spokane Valley Bank code: apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51771 9/17/2020 007136 AMAZON CAPITAL SERVICES INC (Continued) 16V1-VPWJ-H33M 001,040,041.543 VEHICLE REPAIR & MAINTENANCE SU 82.96 Total: 246.26 51772 9/17/2020 000734 DEPT OF TRANSPORTATION RE-313-ATB00817055 101.042.000.542 REIMBURSE TRAFFIC SVCS 2,493.54 RE-313-ATB00817062 101.042.000.542 REIMBURSE ROADWAY MAINTENANCI 19,503.41 Total : 21,996.95 51773 9/17/2020 001089 POE ASPHALT PAVING INC. 46558 101.042.000.542 STREET & STORMWATER MAINTENAN 4,965.72 46559 402.402.000.531 STREET & STORMWATER MAINTENAN 15,379.78 46560 101.042.000.542 STREET & STORMWATER MAINTENAN 96,834.13 Total: 117,179.63 51774 9/17/2020 007945 EAST VALLEY SCHOOL DIST. #361 01811 001.090.099.560 CARES ACT 2020 GRANT 33,820.25 Total: 33,820.25 51775 9/17/2020 000405 SPOKANE VALLEY PARTNERS PMT#1 001.090.099.560 CARES ACT 2020 GRANT 7,581.84 PMT#2 001.090.099.560 CARES ACT 2020GRANT 100,586,43 Total : 108,168.27 51776 9/1712020 000230 SPOKANE CO AUDITORS OFFICE AUGUST 2020 001.040.043.558 RECORDING FEES 1,450,00 Total : 1,450.00 37 Vouchers for bank code : apbank Bank total : 360,107.56 37 Vouchers in this report Total vouchers : 360,107.56 Page: 4 vchlist Voucher List 09/21/2020 2:12:23PM Spokane Valley Page: Bank code : pk-ref Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 8829 9/21/2020 007946 MANSFIELD, STARRLYN PARK REFUND 001.237.10.99 CANCELLATION REFUND: GREAT ROC 500.00 Total : 500.00 8630 9/21/2020 007661 ZIGGY'S HOME IMPROVEMENT PARK REFUND 001.237.10.99 CANCELLATION REFUND: GREAT ROC 210.00 Total : 210.00 2 Vouchers for bank code : pk-ref Bank total : 710.00 Total vouchers : 710.00 2 Vouchers in this report I, the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that [ am authorized to authenticate and certify said claim. Finance Director Date council member reviewed: Mayor Date Council Member Date Page: vchlist 09/21/2020 2:25:23PM Voucher List Spokane Valley Page: Bank code: apbank Voucher Date Vendor Invoice Fund/Dept 51777 9/21/2020 402206 BARLOW, LORI 51778 9/21/2020 007940 DW EXCAVATING INC 51779 9/2112020 005931 LOCHMILLER, ROBERT 51780 9/21/2020 000842 WM WINKLER COMPANY 4 Vouchers for bank code : apbank 4 Vouchers in this report EXPENSES PAYAPP 1 EXPENSES PAY APP 3 001,040,043.558 303.000.275.595 001.040.04 ❑escriptionlAccount Amount EXPENSE REIMBURSEMENT 59.88 Total: 59.88 DW EXCAVATING BARKER ROAD PRO, Total : .543 EXPENSE REIMBURSEMENT 303.000.291.595 0291-CONSTRUCTION Total: Total: Bank total : Total vouchers : 257,549.39 257,549.39 46.00 45.00 3,845.94 3,845.94 261,501.21 261,501,21 Page: —9r� vcitiist Voucher List Page: i--�� 09/23/2020 8:10:08AM Spokane Valley Bank code: apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 7282 9/18/2020 002227 IDAHO TAX COMMISSION Ben95350 001.231.50.03 IDAHO STATE TAX BASE: PAYMENT 1,721.37 Total: 1,721.37 7294 9/18/2020 000048 VANTAGE TRANSFER AGENTS, 401A PLAN Ben95352 001.231.14.00 401A: PAYMENT 38,140.90 Total : 38,140.90 7295 9/18/2020 000682 EFTPS Ben95354 001.231.11.00 FEDERAL TAXES: PAYMENT 37,901.89 Total: 37,901.89 7298 9/18/2020 007303 VANTAGEPOINTTRANSFERAGENTS, 457 RO Ben95356 001.231.23.00 457 ROTH OPTION: PAYMENT 1,674.45 Total: 1,674.45 7299 9/18/2020 000145 VANTAGEPOINT TRANSFER AGENTS, 457 PLE Ben95358 106.231.18.00 457 DEFERRED COMPENSATION: PAYI 9,610.73 Total : 9,610.73 7301 9/18/2020 000162 VANTAGE TRANSFER AGENTS, 401A EXEC PL Ben95360 001.231.14.00 401 EXEC PLAN: PAYMENT 703.31 Total : 703.31 6 Vouchers for hank code : apbank Bank total : 89,752.65 6 Vouchers in this report Total vouchers : 89,752.65 Page: vchlist 09/24/2020 2:14:48PM Voucher List Spokane Valley Page: g -I" Bank code : apbank Voucher Date Vendor Invoice Fund/Dept 51781 9/24/2020 000030 AVISTA 51782 9/24/2020 007637 COMMONSTREET CONSULTING LLC 51783 9/24/2020 003274 EXCHANGE PUBLISHING LLC 51784 9/24/2020 003281 FEHR & PEERS 51785 9/24/2020 001447 FREE PRESS PUBLISHING INC 51786 9/24/2020 005012 SPOKANE CO ENVIRONMENTAL 51787 9/24/2020 003274 EXCHANGE PUBLISHING LLC 51788 9/24/2020 006729 JAKT FOUNDATION 51789 9/24/2020 001944 LANCER LTD 51790 9/24/2020 004535 SHRED -IT USA LLC 51791 9/24/2020 000257 STATEAUDITOR'S OFFICE 51792 9/24/2020 000295 VALLEYFEST 133538 CSROW 20217 578754 140611 51233 40300090 578753 579471 2020 #1 2020 FINAL 0478181 8180399579 L138496 2020 2020 303.000.276.595 314.000.223.595 309.000.315.594 303.000.300.595 309.000.315.594 311.000.309.595 001.011.000.511 001.011.000.511 001.090.000.560 105.000.000.557 001,018,014.514 001 .090.000.51B 001.090.000.514 105,000,000.557 001.090.000.560 Description/Account Amount CIP 0276 0223-RIGHT-OF-WAY SERVICES ADVERTISING 0300-ENGINEERING SERVICES ADVERTISING Total: Total: Total : Total: Total: LOCAL ACCESS STREETS: BARKER Ht Total: ADVERTISING ADVERTISING Total: 2020 SOCIAL SVCS/ECON DEV GRANT 2020 LODGING TAX GRANT REIMBURE Total : BUSINESS CARDS DOCUMENT DESTRUCTION SAO AUDIT OF 2019 Total : Total : Total : 6,379.27 6,379.27 1,155.34 1,155.34 79.50 79.50 925.00 925.00 185.60 105.60 465,000.00 465,000.00 34.50 34.50 69.00 7,840.00 2,912.50 10,752.50 41.38 41.30 162.30 162.30 25,771.64 25,771.64 2020 LODGING TAX GRANT REIMBURE 350.67 2020 SOC SER/ECO DEV GRANT REIM 10,433.80 Page: 4 vchlist Voucher List Page:� 09/24/2020 2:14:48PM Spokane Valley Bank code: apbank Voucher Date Vendor Invoice Fund/Dept DescriptionlAccount Amount 51792 9/24/2020 000295 000295 VALLEYFEST (Continued) Total : 10,784.47 51793 9/24/2020 000001 SPOKANE CO TREASURER 110100275 101.042.000.542 AUGUST 2020 ENGINEERING 141,563,35 Total: 141,563.35 51794 9/24/2020 000030 AVISTA August 2020 101.042.000.542 UTILITIES: CPW MASTER AVISTAAUGL 24,111,23 August 2020 001.076.302.576 UTILITIES: PARK MASTER AVISTA 9,686,37 Total: 33,797.60 51795 9/24/2020 000388 IRVIN WATER DIST. #6 August 2020 001.076.300.576 UTILITIES: PARKS AND CPWAUGUST : 342.02 Total : 342.02 51796 9/24/2020 000132 MODERN ELECTRIC WATER CO August 2020 001.016.016.521 UTILITIES: AUGUST 2020 PARKS 4,518.10 August 2020 141.042.000.542 UTILITIES: AUGUST 2020 CPW 12,410.75 Total : 16,928.85 51797 9/24/2020 000324 SPOKANE CO WATER DIST #3 Sept 2020 #1 402.402.000.531 WATER CHARGES FOR SEPT #1 1,059.12 Total : 1,059.12 51798 9/24/2020 004437 COMMUNITY ATTRIBUTES INC 2905 001,040,312.558 312-APPLEWAYTRAIL ED STUDY 2,470.00 Total : 2,470.00 51799 9/24/2020 000321 GREATER SPOKANE INC 125743 001.040.042.558 MEMBERSHIP DUES/ECONOMIC DEV I 4,494.11 Total : 4,494.11 51800 9/24/2020 006328 KREM-TV 8-2020 Summary Bill 001.040.042.558 ADVERTISING 11,500.00 Total : 11,500.00 51801 9/24/2020 000093 SPOKESMAN -REVIEW, THE 0000016822 001.040.042.558 ADVERTISING: COVID 431.58 Total 431.58 51802 9/24/2020 000140 WALT'S MAILING SERVICE LTD 74912 001.040.042.558 POSTAGE SERVICES: CARES ACT GRl 2,750,47 Total : 2,750.47 51803 9/24/2020 001888 COMCAST Sept 18-Oct 17 2020 001.091000.518 INTERNET: CITY HALL 116.18 Total: 116.18 51804 9/24/2020 003254 SHi INTERNATIONAL CORP 812297932 001.013.000.513 ADOBE ACROBAT DC STANDARD FOR 141.87 Page: �� vchlist Voucher List Page: 09/24/2020 2:14:48PM Spokane Valley Bank code : apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51804 9/24/2020 003264 003264 SHI INTERNATIONAL CORP (Continued) Total : 141.87 51805 9/24/2020 000958 AAA SWEEPING LLC 68567 68568-A 402.402.000.531 402.402.000.531 STREET SWEEPING STORM DRAIN CLEANING 39,995.12 24,584.38 Total : 64,579,50 51806 9/24/2020 007136 AMAZON CAPITAL SERVICES INC 1D1Q-1D99-CG19 101.042.000.542 VEHICLE REPAIR & MAINT. SUPPLIES 227.87 Total : 227.87 51807 9/24/2020 003255 DAY WIRELESS SYSTEMS INV645406 101.042.000.543 TOWER RENT 216.57 Total: 216.57 51808 9/24/2020 002920 DIRECTV INC 37744107315 101.042.000.543 CABLE SERVICE FOR MAINTENANCE : 74.24 Total: 74.24 51809 9/24/2020 005505 EMERALD SERVICES INC 83941515 101.000.000.542 RECYCLING FOR MAINT. SHOP 174.24 Total : 174.24 51810 9/24/2020 001232 FASTENAL CO IDLEW152666 101.042.000.542 SAFETY EQUIPMENT 14.45 Total : 14.45 51811 9/24/2020 000692 GUS JOHNSON FORD 544547 001.040.041.558 VEHICLE REPAIR & MAINT SUPPLIES: 73.05 Total : 73.05 51812 9/24/2020 002518 INLAND PACIFIC HOSE & FITTINGS 1052670 101.000.000.542 HOSES AND PARTS FOR SNOW FLEET 869.02 1052670-01 101.000.000.542 HOSES AND PARTS FOR SNOW FLEET 505.89 Total : 1,374.91 51813 9/24/2020 007881 LIVELYS FIRE EXTINGUISHER SERV 0056 001.090.000.518 FIRE EXTINGUISHER SERVICE 251.36 0063 001.090.000.518 FIRE EXTINGUISHER SERVICE 67.52 Total : 328.88 51814 9/24/2020 002203 NAPAAUTO PARTS 0538-005231 001.090.000.518 VEHICLE REPAIR & MAINT. SUPPLIES: 334.83 0538-005455 001.033.000.518 VEHICLE REPAIR & MAINT. SUPPLIES 291.49 Total: 626.32 51815 9/24/2020 000662 NAT'L BARRICADE & SIGN CO 1009255 101.042.000.542 SUPPLIES 952.8E Page: �� vchlist 09/24/2020 2:14:48PM Voucher List Spokane Valley Page: Bank code: apbank Voucher Date Vendor Invoice 51815 9/24/2020 000662 000662 NAT'L BARRICADE & SIGN CO 51816 9/24/2020 003090 NORTH 40 OUTFITTERS 51817 9/24/2020 001089 POE ASPHALT PAVING !NC. 51818 9/24/2020 003318 TACOMA SCREW PRODUCTS INC 51819 9/24/2020 007159 THE HOME DEPOT PRO 51820 9/24/2020 002363 WESTERN STATES EQUIPMENT CO 51821 9/24/2020 000588 CENTRAL VALLEY SCHOOL DISTRICT 51822 9/24/2020 000405 SPOKANE VALLEY PARTNERS 42 Vouchers for bank code: apbank 42 Vouchers in this report 097591/3 46583 46584 46585 Fund/Dept Description/Account Amount (Continued) Total : 952.88 24168239 571132570 IN001421712 CARES Act Grant PMT #3 101.042.000.542 101.042.000.542 101, 042.000.542 402.402.000.531 101.042.000.542 101.042.000.543 101.042.000.542 001.090.099.560 001.090.099.560 SAFETY EQUIPMENT Total : STREET & STORMWATER MAINTENAN STREET & STORMWATER MAINTENAN STREET & STORMWATER MAINTENAN Total: VEHICLE REPAIR & MAINT SUPPLIES Total: SUPPLIES FOR MAINTENANCE SHOP Total : VEHICLE REPAIR & MAINT. SUPPLIES Total : CARES ACT 2020 GRANT CARES ACT 2020 GRANT Total: 92.54 92.54 703.81 24,060.61 133, 079.66 157,844.08 52.12 62.12 48.94 48.94 700.78 700.78 67,640.50 67,640.50 64,287.24 Total: 64,287.24 Bank total : 1,096,220.26 Total vouchers : 1,096,220.26 Page: vch list Voucher List Page: 09/29/2020 10:54:02AM Spokane Valley Bank code: apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51823 9/29/2020 003076 AMSDEN, ERICA EXPENSES 001.040.041.543 EXPENSE REIMBURSEMENT 50.03 Total : 50.03 51824 9/29/2020 002469 COMMUNITY MINDED ENTERPRISES SEPTEMBER 2020 107.006.000.518 PEG 2020 REIMBURSEMENT #1 22,288.00 Total : 22,288.00 51825 9/29/2020 001926 FARR, SARAH EXPENSES 001.018.014.514 EXPENSE REIMBURSEMENT 31.63 Total: 31.63 5182E 9/29/2020 000252 LOWE'S BUSINESS ACCOUNT Sept 2020 101.042.000.542 SUPPLIES: MAINTENANCE SHOP 283.11 Total: 283.11 51827 9/29/2020 000307 OFFICE OF THE STATE TREASURER AUGUST 2020 001.016.000.589 STATE REMITTANCE 29,687.27 Total : 29,687.27 51828 9/29/2020 000308 SPOKANE CO PROSECUTING AI I Y AUGUST 2020 001.016.000.589 CRIME VICTIMS COMPENSATION REM 461,04 Total: 461.04 51829 9/29/2020 006413 THOMPSON, LINDA EXPENSES 001.011.000.511 EXPENSE REIMBURSEMENT 214.00 Total: 214.00 10879195 9/30/2020 000001 SPOKANE CO TREASURER 9290201815 001,016,000.521 LE CONTRACT SEPTEMBER 2020 1,714,674.00 Total : 1,714,674.00 8 Vouchers for bank code : apbank Bank total : 1,767,689.08 8 Vouchers in this report Total vouchers : 1,767,689.08 Page: vchlist Voucher List Page: /2 10/01/2020 9:25:59AM Spokane Valley Bank code : apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51830 10l112020 001606 BANNER BANK 3169Aug 2020 001,076,305.575 MATPRINT 948.46 3169Aug 2020 001.076.300.576 JUSTAWARDMEDALS.COM 522.72 3169Aug 2020 001.076.301.571 HARBOR FREIGHT 19.58 3169 Aug 2020 001.076.305.575 HOME DEPOT 86.60 Total : 1,577.36 51831 10/1/2020 001605 BANNER BANK 8573 Aug 2020 001.013.015.515 MRSC - 1ST AMENDMENT CONSIDERA 35.00 8573 Aug 2020 001.090.000.517 WAL-MART.COM 408.00 8573 Aug 2020 001.033.000.518 MAVERIK 14.62 8573Aug 2020 001.018.016.518 CRAIGSLIST 25.00 8573Aug 2020 001.033.000.518 AUTO -RAIN 83.45 8573 Aug 2020 001.033.000.518 MAVERIK 14.31 Total : 580.38 51832 10/1/2020 001606 BANNER BANK 6368 Aug 2020 001.040.042.558 FACEBOOK 17.41 6368 Aug 2020 001.040.042.558 ASSOC OF WASHINGTON BUSINESS 60.00 Total: 77.41 51833 10/1/2020 001606 BANNER BANK 9392 Aug 2020 001.033.000.518 SUSTAINABLE SUPPLY 56.58 Total: 4 Vouchers for bank code : apbank Bank total : 4 Vouchers in this report Total vouchers : 56.55 2,291.71 2,291.71 Page: vchlist 10/0 2/2020 10:20:02AM Voucher List Spokane Valley iy„- Page: 1 Bank code: apbank Voucher Date Vendor Invoice 51834 10/2/2020 007948 FILECAMPAG 51835 10/2/2020 007168 ZOOM VIDEO COMMUNICATIONS INC 51836 10/2/2020 000334 ARGUS JANITORIAL LLC 51837 10/2/2020 001944 LANCER LTD 51838 10/2/2020 007707 MOUNTAIN DOG SIGN COMPANY 51839 10/2/2020 000001 SPOKANE CO TREASURER 51840 10/2/2020 007159 THE HOME DEPOT PRO 51841 10/2/2020 003274 EXCHANGE PUBLISHING LLC 51842 10/2/2020 001447 FREE PRESS PUBLISHING INC 50814 INV41699516 INV08359 0478222 I NV-4905 51505300 568943724 570862268 571132562 571132588 571675594 579472 579473 579474 579475 579476 51256 51259 51260 Fund/Dept 001.040.042.558 001.090.000.518 001.033.000.518 001.090.000.519 001.040.043.558 001.040.043.524 001.033.000.518 001.033.000.518 001.033.000.518 001.033.000.518 001.033.000.518 001.013.000.513 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 001.040.043.558 Description/Account Amount SOFTWARE LICENSES & MAINTENANC Total: SOFTWARE LICENSES & MAINTENANC Total : JANITORIAL SVCS: CITY HALL, PRECIP Total: #10 ENVELOPES COUNTER SHIELDS: COVID Total: Total : WORK CREW INVOICE JAN 2020 - ABA Total: CLOROX SPRAYER: PRECINCT SMALL TOOLS/MINOR EQUIP - CITY Hi SMALL TOOLS/MINOR EQUIPMENT: CI' CLOROX ELECTROSTATIC SPRAYER SUPPLIES FOR CITY HALL LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION Total: Total: Total : 534.00 534.00 116.10 116.10 9,714.84 9,714.84 192.78 192.76 805.86 805.86 469.80 469.80 6,762.15 53.09 -6,762.15 4,354.91 47.42 4,455.42 24,75 94.50 96.00 86.90 82.95 385.10 220.80 103.70 98.60 423.10 Page: vchlist 10/02/2020 10:20: 02AM Voucher List Spokane Valley j Page: Bank code: apbank Voucher Date Vendor Invoice Fund/Dept 51843 10/2/2020 000506 ASCE 51644 10/2/2020 000734 DEPT OF TRANSPORTATION 51845 10/2/2020 000093 SPOKESMAN -REVIEW, THE 51846 10/2/2020 000921 ATO 2 RENTAL & SALES INC 51847 10/2/2020 000150 ALLIED FIRE & SECURITY 51848 10/2/2020 004046 AMERICAN ONSITE SERVICES 51849 10/2/2020 007718 APPLETREE 51850 10/2/2020 005046 FASTSIGNS 51851 10/2/2020 004813 FIRST CHOICE COFFEE SERVICES 51852 10/2/2020 001635 JSS FACILITY EVENT SERVICES 51853 13/2/2020 007815 LITTLE FISH PRODUCTIONS LLC 51854 10/2/2020 000652 OFFICE DEPOT INC. Description/Account Amount 1044708289 001.040.041.543 MEMBERSHIP DUES: ERICAAMSDEN 270.00 Total: 270.00 RE-313-ATB00914055 RE-313-ATB00914065 0000016706 427314-1 866374 356728 000018-372-351 540-12236 540-12242 294771 1490413 1687 122863642001 101.042.000.542 101,042,000.542 REIMBURSE TRAFFIC SVCS REIMBURSE ROADWAY MAINTENANCI Total: 001.011.000.511 ADVERTISING ACCT 42365 001.076.300.576 EQUIPMENT RENTAL C01.076.305.575 SECURITY MONITORING AT CENTERP Total: 001.076.300.576 PORTABLE RESTROOMS AT PARKS Total : 001.076.305.575 ANSWERING SERVICE FOR CENTERP Total : 001.076.305.575 001.076.305.575 001.076.305.575 001.076.305.575 001,376,000.576 001.076.305.575 Total : Total : SIGNAGE FOR PARKS - CONSTRUCTIC SIGNAGE FOR PARKS - CONSTRUCTIC Total : COFFEE SUPPLIES FOR CENTERPLAC Total : SEPTEMBER 2020 MONTHLY CLEANIN Total : VIDEO PRODUCTION FOR PARK - GRF Total: 7.294.00 2,991.79 10,285.79 512.03 512.03 289.95 289.95 144.32 144.32 720.00 720.00 39.44 39.44 320.17 213.44 533.61 57.83 57.83 8,085.09 8,085.09 1,750.00 1,750.00 OFFICE SUPPLIES: CENTERPLACE 87.10 Total : 87.10 Page: vchlist 1010 212020 10 : 20 : 02 A M Voucher List Spokane Valley Page: Bank code: apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51855 10/2/2020 000709 SENSKE LAWN & TREE CARE INC. 10240236 10253248 001.076.300.576 001.076.300.576 ADDITIONAL CLEANING OF PARKS RE ADDITIONAL CLEANING OF PARKS RE Total: 1,524.60 1,524.60 3,049.20 51856 10/2/2020 000854 SPW LANDSCAPE ARCHITECTS 1976.02 001.076.000.576 VALLEY MISSION HORSE ARENA MAS- 1,145.00 Total : 1,145.00 51857 10/2/2020 007120 TSHIMAKAIN CREEK LABORATORY 2026103 001,076,300.576 ENVIRONMENTAL TESTING AT PARKS 25.00 Total : 25.00 51858 10/2/2020 000487 YMCA OF THE INLAND NW Aug 2020 001.076.302.576 OPERATING EXPENSES/MGMT FEE AL 9,188.84 Total : 9,188.84 51859 10/2/2020 000864 JUB ENGINEERS INC. 0136802R 101.042.000.542 ON -CALL TRAFFIC ENGINEERING SVC 20,628.50 Total : 20,628.50 51860 10/2/2020 000980 WESTERN SYSTEMS INC 000044297 101.042.000.594 8TH/DISHMAN-WIRE/EQUIP REPLACE, 6,233.65 Total : 6,233.65 51861 10/2/2020 000322 CENTURYLINK SEPTEMBER 2020 001.076.000.676 2020 PHONE SVCS: ACCT 509 Z14-002, 592.08 Total : 592.08 51862 10/2/2020 001888 COMCAST 9/17/2020-10/16/2020 001.076.305,575 INTERNET/PHONE: CENTERPLACE 398.74 Total : 398.74 51863 10/2/2020 007901 DATEC INC 30700 001.090.000.518 VMWARE SUPPORT RENEWAL 7,348.57 Total : 7,348.57 51864 10/2/2020 007730 ROYAL BUSINESS SYSTEMS IN132400 001,040,043.558 SEPTEMBER COPIER COSTS 292.34 Total : 292.34 51865 10/2/2020 007136 AMAZON CAPITAL SERVICES INC 1 LLG-KD39-MJXT 001,016,000.521 AMAZON JAG 2017 PURCHASES 4,319.06 Total : 4,319.06 51866 10/2/2020 003122 CALHOUN, MARK October 2020 001.013.000.513 MONTHLY AUTO ALLOWANCE FOR 10/ 400.00 Total: 400.00 51867 10/2/2020 000326 CONSOLIDATED IRRIGATION #19 Sept 2020 402.402.000.531 UTILITIES: CPW SEPT 2020 495.73 Page: vch list 10102/2020 10:20:02AM Voucher List Spokane Valley Page: f Bank code : apbank Voucher Date Vendor Invoice Fund/Dept 51867 10/2/2020 000326 CONSOLIDATED IRRIGATION #19 51868 10/2/2020 000246 EAST SPOKANE WATER DIST#1 51869 10/2/2020 007465 ELEVATIONS: A CHILDREN'S 51870 10/2/2020 003274 EXCHANGE PUBLISHING LLC 51871 10/2/2020 001447 FREE PRESS PUBLISHING INC 51872 10/2/2020 000070 INLAND POWER & LIGHT CO 51873 10/2/2020 000001 SPOKANE CO TREASURER 51874 10/2/2020 000324 SPOKANE CO WATER DIST #3 51875 10/2/2020 000322 CENTURYLINK 51876 10/2/2020 000044 DELL MARKETING LP 51877 10/2/2020 004632 LEVEL3 COMMUNICATIONS (Continued) Sept2020 Sept2020 2020 2020 2020 580201 51280 Sept 2020 14801486 42000776 42000782 51505516 Sept 2020 #2 Sept 19-Oct 19 2020 10426529199 151161424 001.076.300.576 402.402.000.531 001.090.000.560 001.090.000.560 001.090.000.560 001.011.000.511 001.011.000.511 101.042.000.542 001.090.000.566 001.016.000.554 001.016.000.554 001.016.000.523 402.402.000.531 001.090.000.518 001.090.000.518 001.090.000.518 Description/Account Amount UTILITIES: SEPT2020 PARKS AND CP Total : WATER CHARGES FOR SEPT 2020 Total : 2020 SOC SER ECO DEV GRANT REIM 2020 SOC SER ECO DEV GRANT REIM 2020 SOC SER ECO DEV GRANT REIM Total: ADVERTISING ADVERTISING UTILITIES: SEPT 2020 Total: Total: Total: 2ND QTR 2020 LIQUOR/EXCISE TAX ANIMAL CONTROL SERVICES OCTOBE 2ND HALF OF DEBT SERVICE SEPTEMBER 2020 INMATE HOUSING Total : WATER CHARGES FOR SEPT #2 CITY HALL PHONES DELL LATITUDE 5510 TELECOM SERVICES Total: Total : Total: 1,501.89 1,997.62 3,681.71 3,681.71 1,862.68 686.88 351.52 2,901.08 34.50 34.50 188.65 188.65 453.74 453.74 6,864.91 22,337.20 22,500.00 116,961.21 168,663.32 1,955.20 1,955.20 298.06 298.06 5,118.04 5,118.04 815.04 Page: vchlist Voucher List Page: 10102/2020 10:20:02AM Spokane Valley Bank code: apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 51877 10/2/2020 004632 004632 LEVEL 3 COMMUNICATIONS (Continued) Total: 815.04 51878 101212020 003238 KPFF CONSULTING ENGINEERS 342665 403.000.308.589 0308-ENGINEERING &ARCHITECTURE 1,059.20 Total : 1,059.20 45 Vouchers for bank code : apbank Bank total : 2130,659.28 45 Vouchers in this report I, the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that I am authorized to authenticate and certify said claim. Finance Director Date Council member reviewed: Mayor Date Council Member Date Total vouchers : 280,659.28 Page: / vchlist Voucher List Page: 10/0512020 11:04:50ANVl Spokane Valley Bank code : pk-ref Voucher Date Vendor Invoice FundlDept Description/Account Amount 8831 10/5/2020 007956 RSVP OF SPOKANE COUNTY PARK REFUND 001.237.10.99 CANCELLATION REFUND: GREAT ROC 1,071.00 Total : 1,071,00 1 Vouchers for bank code : pk-ref Bank total : 1,071.00 1 Vouchers in this report I, the undersigned, do certify under penalty of perjury, that the materials have bean furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that lam authorized to authenticate and certify said claim. Finance Director Date Council member reviewed: Mayor Date Council Member Date Total vouchers : 1,071.00 Page: CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 13, 2020 Department Director Approval : Item: Check all that apply: ® consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Payroll for Pay Period Ending September 30, 2020 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: Budget/Financial impacts: Employees Council Total Gross: $ 320,006.43 $ 10,265.00 $ 330,271.43 Benefits: $ 194,974.38 $ 8,850.36 $ 203,824.74 Total payroll $ 514,980.81 $ 19,115.36 $ 534,096.17 RECOMMENDED ACTION OR MOTION: Move to Approve above payroll. [Approved as part of the Consent Agenda, or may be removed and discussed separately.] STAFF CONTACT: Raba Nimri DRAFT MINUTES City of Spokane Valley City Council Regular Meeting Study Session Format Tuesday, September 15, 2020 Mayor Wick called the meeting to order at approximately 6 pm. The meeting was held in City Hall with Council, staff and presenters participating via ZOOM. Ben Wick, Mayor Brandi Peetz, Deputy Mayor Pam Haley, Councilmember Tim Hattenburg, Councilmember Rod Higgins, Councilmember Linda Thompson, Councilmember Arne Woodard, Councilmember Mark Calhoun, City Manager John Hohman, Deputy City Manager Cary Driskell, City Attorney Mike Stone, Parks & Rec Director Erik Lamb, Deputy City Attorney Sarah Farr, Accounting Technician Dan Domrese, Accounting Manager Christine Bainbridge, City Clerk ROLL CALL City Clerk Bainbridge called the roll; all Councilmembers were present. APPROVAL OF AGENDA: It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the agenda. NON -ACTION ITEM: 1. Outside Agencies Funding Requests — Chelsie Taylor, Dan Domrese Mr. Domrese gave an overview of the process for Outside Agency funding, and asked Councilmembers to provide their individual scoring sheet to Finance Director Taylor by 4:00 p.m. Friday, October 9, 2020; and that the total award amounts recommended should add up to $182,000. Representatives from the following organizations gave a brief presentation in response to our call for Outside Agency Funding: Christ Kitchen, Elevations Childrens Therapy, Feed Spokane, Family Promise, GSC Meals on Wheels, Heidi Duty, HUB, JAKT, Jazzed About Reading, Pet Savers, Project Beauty Share, Spokane Rapids, and the Spokane Valley Arts Council. Mayor Wick called for a recess at 7:20 p.m. The meeting reconvened at 7:34 p.m., and presentations continued with Spokane Valley Heritage Museum, Spokane Valley Partners, Spokane Valley Summer Theatre, Spokane Workforce Council, Spokanimal, Teen & Kid Closet, The Family Guide Rally the Valley and The Family Guide Back to School, Valleyfest and Valleyfest Multicultural Event, Widows Might, and the YWCA. Mr. Domrese reminded Council about the scoring sheet included in the binder for Council's recommended funding, and to please return that to Finance Director Taylor no later than Friday, October 9, that totals should equal $182,000, and that the allocation motion will be included on the October 20 Council meeting. ACTION ITEM: 2. Motion Consideration: Public Comment Process — Cary Driskell Mayor Wick said that tonight Council will begin with discussion. City Attorney Driskell said this agenda item is in response to Council concerns about public comments and rules of how to engage in those comments in a City business meeting; he mentioned the draft language and said Council can adopt all the proposed changes, some, none, or propose something different; and that if Council determines, this could return to a future Council meeting. Mr. Driskell explained that he researched a lot of case law and spoke to many other jurisdictions on this topic; said it is interesting looking at other laws from other jurisdictions in that some don't necessarily reflect a recent analysis; he said it is important to see how recent those provisions are and if they are enforced. Further, Mr. Driskell explained that Council meetings are business meetings, and the courts recognize this is not an open public forum but rather a limited public forum where Council Meeting Minutes: 09-15-2020 Page 1 of 3 Approved by Council: DRAFT there can be reasonable time, place and manner restrictions such as what has already been done with a three - minute time limit. There was Council discussion about whether this would be better to slow down and send this issue back to the Governance Manual Committee, and then come back to full Council. Mayor Wick said he feels the Manual doesn't give him the latitude to curb some citizen comments, adding that he would like to have a process to stop the citizen -to -citizen comment. Councilmember Thompson expressed her appreciation to City Attorney Driskell for putting in the time to clarify some of the language in the manual, that she likes limiting speakers to one of the two public comment periods, and that she supports the changes proposed by Mr. Driskell. Councilmember Hattenburg said he agrees with Councilmember Thompson, that he understands this won't stop some of the negative comments, and that he too supports the changes as drafted. Deputy Mayor Peetz said this discussion was about up about a year and a half ago concerning doing City business, but the comments have gotten progressively worse, that the clarification is needed and she supports the proposed changes and said she feels this does not need to go to committee. Councilmember Haley said if this goes back to the Governance Manual Committee, it would still come back to Council; that when this conversation occurred a year and a half ago, Council was told there was nothing Council could do and that people could say what they wanted and by virtue of the position, she said Councilmembers need to be able to take the comments, that she has received negative comments over the years; and by giving this to the Governance Manual Committee, they could work with Mr. Driskell to determine what can and can't be done; she said the public at times brings themselves into our meetings, and when the public goes against them, that is taken negatively; she said if members of the public bring themselves into the meeting, they should expect to get something back; regarding slanderous comments, said that falls under decorum and that she feels no one should be able to say that to any citizen in a council meeting; said this needs to go to the committee with the City attorney to make sure any changes won't subject us to a lawsuit. At approximately 9:00 p.m., it was moved by Councilmember Thompson, seconded and unanimously agreed to extend the meeting for fifteen minutes. In response to Councilmember Thompson's question of Mr. Driskell if the proposed language is legal and viable to have as procedures, Mr. Driskell said if he proposes language to Council, it is legal. Mr. Driskell then discussed the idea of what people can or can't say or do in meetings; that just making comments won't get someone removed from a meeting, but disruptive conduct could, which could include such things as not stopping talking when the time limit is up, yelling, or throwing papers at the dais; and said Council has already implemented some procedures to address that. He also noted that there are various ways people can contact Council other than at a meeting, they can call, e-mail, or send letters so those avenues of public comment will not change; he said Council can ask people to be polite but can't make them; and if there are regulations, everyone must be treated the same; said regarding Council's work as Councilmembers, we can't allow people to praise Councilmembers in their jobs but not allow criticism; and that if comments are to be kept to the business of the city, that regulation would apply to all. Mr. Driskell also reminded Councilmembers that as elected officials, they have to have thick skin when it comes to comments; that we can ask that people allow us to conduct meetings professionally, but we likely can't make them do that. Mr. Driskell also noted the added proposed language about the prohibition of citizens discussing not only current or future/probable ballot issues, but past ballot issues/elections as well. It was moved by Councilmember Hattenburg and seconded to approve the proposed changes to the Governance Manual Chapter 1(C) relating to public comments (pages 14-15), and Chapter 2(F) relating to ballot measures (pages 36-37) as drafted, that these changes become effective upon approval, and that these changes be incorporated into the Governance Manual during the next general update of that document. Two citizens signed up to speak: Ms. Barb Howard, Spokane Valley: she asked Council to look at the July 3, 2018 and the July 10, 2018 meetings; said she will play by the rules as long as they are applied the same to all; she asked who makes the determination of what is city business; that she has sat through a lot of Council meetings and not seen the City Attorney address anything but simply let it go on; she said Councilmembers are fair game; that she Council Meeting Minutes: 09-15-2020 Page 2 of 3 Approved by Council: DRAFT has seen people get attacked over the years and it is getting worse; that if the Mayor can't conduct the meeting she suggested someone else should step in. It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to extend the meeting for ten more minutes. Mr. Bob West, Spokane Valley: he extended thanks to the City Attorney for his research and said the Attorney's recommended changes are right on point except for one area; he extended his apologies for the 'back and forth' comments and said he feels he has the right to defend himself; and he agreed that public comments need to be about the business of the City; said he supplied the City Clerk and Council examples of language from various cities and citations from the State of Washington; said by allowing the present language to stand and not prohibiting language that prohibits attacks on Councilmembers, especially defamation and slanderous remarks against other private citizens during public comment, is a breeding ground for litigation against the City and he cited a court case from the 4tn U.S. Circuit Court of Appeals which speaks to his argument, as well as other cases and state statutes. City Attorney Driskell said that Ms. Howard was correct in that whatever is adopted must be applied and enforced equally regardless of who is speaking; and he suggested to Ms. Howard that even if she criticizes him, like the Council he needs to have thick skin, that he is a public employee and would not retaliate against her for her comments; concerning Mr. West's comments, said that he appreciates the legal research and wish the laws from the 4tn Circuit applied to us but they do not as we are in the jurisdiction of the 9th Circuit Court of Appeals which has made it very clear they are much more protective of the First Amendment rights than the 4tn Circuit Court of Appeals; said he has provided Council with verbiage of the limit of what can be done concerning handling comments. Councilmember Haley asked Mr. Driskell for his recommendation of passing this tonight or having it return to the Committee. Mr. Driskell replied he takes no position; but if this proposed language is adopted tonight, it would be effective immediately and be in full force and effect but not put into the Governance Manual until the next iteration adopted by resolution likely next year; so not an interim rule, it just wouldn't be in the actual manual until some time next year. Councilmember Woodard called the question: In favor of stopping discussion and proceeding to vote: unanimous; opposed: none. Vote approved to stop discussion. Vote by acclamation in favor of the motion as stated to approve the proposed changes: in favor: Mayor Wick, Deputy Mayor Peetz, and Councilmembers Hattenburg and Thompson. Opposed: Councilmembers Haley, Higgins and Woodard. Motion passed. It was moved by Councilmember Woodard, seconded and unanimously agreed to extend the meeting two additional minutes. NON -ACTION ITEMS: 3. Advance Agenda — Mayor Wick There were no suggested changes to the Advance Agenda. 4. Council Comments — Mayor Wick There were no additional Council comments. 5. City Manager Comments — Mark Calhoun Mr. Calhoun had no additional comments. It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to adjourn. The meeting adjourned at 9:20 p.m. ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Council Meeting Minutes: 09-15-2020 Page 3 of 3 Approved by Council: DRAFT MINUTES SPOKANE VALLEY COUNCIL REGULAR MEETING FORMAL FORMAT Spokane Valley City Hall Spokane Valley, Washington September 22, 2020 Mayor Wick called the meeting to order at 6:00 p.m. The meeting was held remotely via ZOOM meeting. Attendance: Councilmembers Ben Wick, Mayor Brandi Peetz, Deputy Mayor Pam Haley, Councilmember Tim Hattenburg Councilmember Rod Higgins, Councilmember Linda Thompson, Councilmember Arne Woodard, Councilmember Staff Mark Calhoun, City Manager John Hohman, Deputy City Manager Chelsie Taylor, Finance Director Cary Driskell, City Attorney Erik Lamb, Deputy City Attorney Mike Stone, Parks & Recreation Director Morgan Koudelka, Sr. Admin. Analyst Lori Barlow, Senior Planner Jenny Nickerson, Building Official Christine Bainbridge, City Clerk ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. APPROVAL OF AGENDA: It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: n/a COMMITTEE, BOARD, LIAISON SUMMARY REPORTS: Councilmember Woodard: mentioned the HCDAC (Housing Community Development Advisory Committee) meeting last week; said they had a public hearing on a few different five-year plans but no one showed up to speak. Councilmember Haley: said she attended the STA (Spokane Transit Authority) board meeting and they too had a public hearing on the 2021 Transit Development Plan, which is a six year plan updated annually; said they approved the plan but with the COVID the plan has been adjusted and they continue getting updates on the Division connection study; said they applied for a rapid transit grant and they are holding onto the commitment to do the central city line on time and under budget; mentioned that STA CEO Susan Meyer said she would be happy to come out and talk about park and rides; concerning the Young Adult Housing, said she will know more October 5th. Councilmember Higgins: mentioned that the smoke caused near record setting poor air quality. Councilmember Thompson: reported she attended an AWC (Association of Washington Cities) equity training in partnership with the NLC (National League of Cities), with about 120 city leaders meeting on Zoom; said she is chair of the AWC Large City Committee and they had some good discussions about what people are doing in their cities to try to reduce the impact from COVID, as well as working together with schools, towns, etc.; said the Board of Health meeting will be held this week; and she took a moment to honor Ruth Bader Ginsburg, and said she inspired so many to get involved with their communities, and that her death is a huge loss to our nation. Councilmember Hattenburg: mentioned that he also attended the STA meeting where the main goal continues to stay under budget; said they might have to delay some things for a year, but they will still happen; mentioned the Barker Road roundabouts, said the north side is complete and the south side ramps will be closed for another few weeks. Regular Formal Council Meeting: 09-22-2020 Page 1 of 6 Approved by Council: DRAFT Deputy Mayor Peetz: said she attended the Law & Justice Council meeting where they talked about data; that they have a new data dashboard but that isn't for public use, adding that she is hoping to get a presentation about that, especially if they can separate the data for Spokane Valley; said the Property Crime Task Force has recovered a lot of stolen property, including some vehicles and firearms; said she went to the Visit Spokane meeting and they are working to get out of their lease as it is very expensive, and they have proposed a sub -lease with GSI (Greater Spokane, Inc.); concerning the Tourism Promotion Area committee, said 62 hoteliers have agreed to raise the per night rate and said there will also be a change in the benefit for membership for Visit Spokane so more businesses can participate; said the Valley Chamber Government Action meeting forum will be held in October and that the Chamber will be changing its location in November; and that she attended the Business Connections Breakfast/lunch where they discussed COVID impacts on businesses. MAYOR'S REPORT: Mayor Wick explained that the closer we get to the legislative session, we will be hearing a lot about transportation; mentioned the reduction of the car tab revenues are also driving some large deficits; he mentioned the freight Mobility Strategic Investment Board's focus will be on trying to deliver projects and how to get projects done on that list with an either spend it or lose it process; said he attended the Regional Mayor's monthly call to discuss what's going on in different municipalities and how to get through these COVID times including school openings; said the Governor changed the phase on the safe start plan so that phase 3 mostly resembles phase 2; said the Regional Health Board held a budget and committee finance meeting and they anticipate a shortfall just under $4 million; and he also mentioned that the fair will not be held this year although there was a drive -through fair food event which was well -received. PROCLAMATION: Deaf Awareness Week Mayor Wick read the proclamation for Deaf Awareness Week, which was accepted with thanks from Ms. Sandra Carr with the Washington Advocates of Deaf & Hard of Hearing. GENERAL PUBLIC COMMENT OPPORTUNITY 111: There were no public comments. 1. PUBLIC HEARING: 2021 Budget Revenues and Property Taxes — Chelsie Taylor Mayor Wick opened the public hearing at 6:22 p.m. Finance Director Taylor went over the material included in her Request for Council Action, and mentioned that the figures in blue font represent updates since the last time Council saw these figures, and are attributable to updated data from engineering on different capital projects and their funding sources; mentioned that the total appropriations are $97.9 million; stated that the FTE (full time equivalent employees) is the same as in 2020; that as part of the budget workshop, Council decided against creating a new Housing & Homeless Services Division, however, staff was asked to research the possibility of repurposing a current vacant position and said that staff determined that a vacant engineer position could be repurposed, which could be included in a future 2020 budget amendment; she mentioned revenues and expenditures as shown on the PowerPoint slides; she went over other funds such as motor vehicle fuel tax and telephone taxes; mentioned fund challenges such as declining revenues in the Street O&M fund, and ended with upcoming dates for future Council budget discussions. There were no public comments and Mayor Wick closed the public hearing at 6:34 p.m. 2. CONSENT AGENDA: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Agenda. a. Approval of claim vouchers on Sept 22, 2020, Request for Council Action Form Total: $3,180,962.65 b. Approval of Payroll for Pay Period Ending September 15, 2020: $388,401.66 c. Approval of September 8, 2020 Council Meeting Minutes, Regular Formal Format d. Approval of Resolution 20-013 Setting Planning Commission Public Hearing for Street Vacation e. Approval of Motion to Set 2021 Budget Hearing #2 for October 27, 2020 It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the Consent Agenda. Regular Formal Council Meeting: 09-22-2020 Page 2 of 6 Approved by Council: DRAFT NEW BUSINESS: 3. Second Reading Ordinance 20-011 Amending SVMC 9.20 Motorized Personal Transportation Devices — Erik Lamb After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Peetz and seconded to approve Ordinance 20-011, amending chapter 9.20 SVMC as proposed. Legal Intern Johnson briefly went over the proposed changes to the code. There were no public comments. Vote by acclamation: in favor: unanimous. Opposed: none. Motion carried. GENERAL PUBLIC COMMENT OPPORTUNITY 121: There were no public comments. ADMINISTRATIVE REPORTS: 4. Code Text Amendment 2020-0003 Nonconforming Use — Lori Barlow Planner Barlow went over the proposed code text amendments, and explained the difference between the current and the proposed regulations; adding that the code does not currently define `adjacent.' After Ms. Barlow went over the staffs proposed regulations and the Planning Commission's recommendation, there was lengthy discussion about the criteria, different scenarios based on either proposal, where a nonconforming use might be expanded to an adjacent lot, whether staffs proposal is too restrictive, inconsistency with the comp plan and an increased impact with surrounding neighborhoods, to make sure whichever recommendation is chosen is clear and easily enforceable and one of the reasons for this proposal is that the current code language is not easily interpreted. It appeared that some Councilmembers were leaning toward the staff proposal, while others were leaning more toward the Planning Commission recommendation. City Attorney Driskell suggested considering all the mentioned concerns and issues, to have staff come back with another administrative report, and said that there is no hurry on this amendment. Council agreed to have staff bring back another administrative report later. 5. Homeless Shelter Updates — Mark Calhoun, John Hohman, Morgan Koudelka City Manager Calhoun explained that this is an opportunity for Council to hear an update on the homeless shelter projects; he said there has been no commitment of any general fund money thus far, and that staff will proceed very cautiously and any future commitment of any money will be done through separate Council action. Mr. Koudelka went over the information on the Bridge Housing Project. Mr. Koudelka said options for Council consideration are: (1) stay with the 18 month commitment of HHAA (Homeless Housing Assistance Act) funds; (2) commit to five years of operational funding through Spokane Valley HHAA funds; and (3) commit to five years of HHAA funds with the ability to withdraw at 18 months if Spokane Valley's needs and clients are not being served adequately. Deputy City Manager Hohman stated that staff is working with a consultant on the housing action plan, and as part of that plan we are looking at the issue of these HHAA recording fees and what it would take if we received those directly from the County and expended the funds directly; said we will be looking at that soon and there will be more information to follow. Mayor Wick asked about the amount of recording fees for Spokane Valley and Mr. Hohman replied that it is probably about $550,000 or more, but we do not have an exact number now, and that figure will also be forthcoming. Mr. Calhoun said that staff is working on our first housing plan and he supposes Council might want to access a portion of those recording fees to complement items that would be adopted in that plan; however, he explained, staff is not seeking a decision tonight and said we will keep Council updated as things progress. Mr. Koudelka stated that in order to assess our future, we need to know what we are getting for our current investment; said he is hopeful when we hire our own housing coordinator that person will be able to pull much of this information together; he noted the funding commitment by the Board of County Commissioners was for a five-year period beginning January 1, 2020; and that due to the COVID use of the identified facilities, it is unknown when the Bridge Shelter would become operational, adding that established timeframes may need to be reconsidered as the Bridge Shelter gets closer to fruition. Mr. Koudelka then went over the material on the Young Adult Shelter as noted on his Request for Council Action. Regular Formal Council Meeting: 09-22-2020 Page 3 of 6 Approved by Council: DRAFT Deputy City Manager Hohman reminded everyone that currently our zoning code and Municipal Code only allow this kind of use in multifamily zones, and only then with the approval of a Conditional Use Permit (CUP) which is a lengthy process conducted before the Hearing Examiner; he noted these uses are very controversial depending on location. Mr. Hohman said other options to consider would include having interim regulations or a code text amendment to allow the use; said we have a culture of being thorough and dedicated to data driven information and a public involvement decision, and that process has not been conducted yet; he noted this could be brought forward as a comprehensive plan amendment and stated we are taking applications now before the process closes the end of October; and if Council desires, this issue would be placed on that docket and the proper process brought forward to make this happen, including the needed public involvement; adding that perhaps multifamily isn't the right zone for this either but those discussions need to occur and again, and while staff is not looking for any decision tonight, he asked if Council would like to bring this forward as a City -initiated comprehensive plan amendment or entertain some kind of interim zone or regulation. All Councilmembers agreed to put this item on the docket for a comprehensive plan amendment. Mayor Wick called for a recess at 8:13 p.m.; he resumed the meeting at 8:23 p.m. 6. State Legislative Agenda — Cary Driskell, John Hohman, Mark Calhoun City Manager Calhoun stated that tonight is the first touch on the 2021 state legislative agenda and once adopted, we will share it with the 4th District delegation; he noted a copy of the adopted 2020 legislative agenda is included with tonight's materials, as well as the draft 2021 agenda with less items than on the 2020 agenda; that the 2021 agenda has just three items, two of which were carried over from the previous year. Mr. Calhoun explained the rationale for less items is due to past experience where we don't have enough time to include/discuss all items in the agenda, and end up prioritizing on the fly. Mr. Calhoun also noted the legislature will be adopting a capital budget and it is our understanding their preference will be on projects that provide a rapid economic benefit to the community as a response to the current COVID-19 induced recession. City Attorney Driskell noted that Gordon Thomas Honeywell lobbyist team members Ms. Briahna Murray and Ms. Holly Cocci are in attendance via zoom. Mr. Driskell stated that he has had discussions with House Transportation Committee Chair Fey and it was mentioned this would be a good opportunity to try to get the entire $19.3 million to complete the funding on the Pines Road Grade Separation Project. Mr. Driskell mentioned the Economic Development Tools item will allow us to attract more businesses and help those businesses already here; said he feels Council would want to continue to have that on the agenda and that he is seeking Council direction on that item. There was unanimous consensus to include that on the next draft. The legislative agenda items on the 2020 agenda were also discussed and there was apparent Council consensus to keep Defend Local Control, but to shorten the narrative. Mr. Hohman went through the PowerPoint presentation explaining the Fairgrounds Exhibition Center project; said the fairgrounds have been static for a long time and this would hopefully spark some activity, and it should also work well with any changes to the stadium; said the Center would need a four to five year window to design and construct; and we would request $3 million from the state; he also mentioned the possibility of a contribution from the County but said he didn't want to go too far in this concept without bringing this to Council first. Finance Director Taylor went over the financial analysis and as noted on the last slide, stated this project will lose money, and the $445,000 operating expense would be a County expense; she said we will still see an increase in sales taxes and more money from tourism stays, but the building would lose money. Ms. Taylor asked if Council would like to bring this forward and if so, staff will have further discussions with the County. It was at this point that Ms. Murray announced she had to leave for another appointment, but will follow up afterwards if there are any further questions. Regular Formal Council Meeting: 09-22-2020 Page 4 of 6 Approved by Council: DRAFT The Fairgrounds project was discussed with Councilmembers Woodard and Hattenburg agreeing to move ahead, and Deputy Mayor Peetz expressing a hesitation in that she feels more discussions are warranted. It was noted there was consensus to have further discussions on this with the County, and that staff will be in contact with the County and will follow up on this when the topic comes back to Council in October. At 8:56 p.m., it was moved by Councilmember Thompson, seconded and unanimously agreed to extend the meeting 30 minutes. 7. Washington State Department of Transportation Land Acquisition, Flora Road — Cary Driskell, Mike Stone City Attorney Driskell briefly went over the updated information and funding options as contained in his Request for Council Action; and said that WSDOT (Washington State Department of Transportation) still does not have plans to do anything with the property and would like to sell the property to the City. Parks & Recreation Director Stone said that the final presentation was made today before the RCO (Recreation Conservation Office) for the grant application for the Flora Road Property, and he feels a very compelling argument was made about where this falls in the City's priorities and Parks Master Plan; said it was well received and we should know in a few weeks how we ranked; said we were competing with 85 other projects in the state. There was Council discussion about the purchase and the property including mention from Councilmember Woodard of waiting until maybe late November or early December for further discussion and a motion in order to allow more time to see what's happening with revenues due to COVID. Deputy Mayor Peetz said she feels we need to move forward and not wait, that we have the money and won't have to touch our general fund for this, and she doesn't want to miss out on a piece of property like this. Discussion continued about trusting WSDOT to let us know if they have plans to sell; the purchase price was set by appraisal; funding and funding options; and the idea of purchasing this property now and waiting to improve Balfour Park until later. Mr. Driskell said it would probably take a few months to draw up the necessary paperwork to actually finalize the purchase. Councilmember Woodard added that he would like to make this purchase with the condition that if we use any of the Balfour Park funds, they would be put back first out of any surplus in the future, and before we go with anything else. Deputy Mayor Peetz agreed. Consensus to move forward now included Mayor Wick, Deputy Mayor Peetz, and Councilmembers Thompson and Hattenburg. Mr. Driskell said he will put this on a future agenda as quickly as possible. 8. Advance Agenda — Mayor Wick Councilmember Haley said she has been contacted by several businesses worried about L&I; that people were told that experience ratings don't matter so people can lay off staff, furlough them and it won't change their experience rating which she said is true, but the problem is, it will change everyone's rating; so they will take the amount of money they'd spend and divide it among the businesses and they will raise everyone's rates to make sure they cover the losses and any potential continuing loss; said this will hurt the small businesses the most; said she doesn't know if this is something to talk to our legislators about or to write a letter to the legislators or Governor, or other ideas. Mr. Calhoun said that when we do an update on the legislative agenda next month, he will ask Lobbyist Briahna Murray to provide some background and then Council can decide whether to include this in the 2021 agenda. Mayor Wick suggested sending a letter as well. Councilmember Woodard said he heard that if we wait to have this on next year's legislative agenda, it will be too late; he suggested we encourage the Governor to take a billion dollars or parts of those CARES dollars and use it to rebuild that L&I insurance system/account. Councilmember Thompson presented the idea of maybe being in support of someone else taking the lead on this, perhaps the Chamber or others. 9. Department Monthly Reports The Department monthly reports were for information only and were not reported or discussed. Regular Formal Council Meeting: 09-22-2020 Page 5 of 6 Approved by Council: DRAFT CITY MANAGER COMMENTS Concerning Deputy Mayor Peetz' comments about the TPA and increasing rates, City Manager Calhoun mentioned that this will be a topic on next week's agenda to look at an amended interlocal agreement. Mr. Calhoun also noted that Finance Director Taylor and Deputy City Attorney Lamb will give an update to Council on the CARES funds and how to address a second round of distributing funds. It was moved by Councilmember Thompson, seconded and unanimously agreed to adjourn. The meeting adjourned at 9:28 p.m. ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Regular Formal Council Meeting: 09-22-2020 Page 6 of 6 Approved by Council: DRAFT MINUTES City of Spokane Valley City Council Regular Meeting Study Session Format Tuesday, September 29, 2020 Mayor Wick called the meeting to order at approximately 6 pm. The meeting was held in City Hall with Council, staff and presenters participating via ZOOM. Ben Wick, Mayor Brandi Peetz, Deputy Mayor Pam Haley, Councilmember Tim Hattenburg, Councilmember Rod Higgins, Councilmember Linda Thompson, Councilmember Arne Woodard, Councilmember Mark Calhoun, City Manager John Hohman, Deputy City Manager Cary Driskell, City Attorney Mike Stone, Parks & Rec Director Erik Lamb, Deputy City Attorney Dave Ellis, Police Chief Connor Lange, Planner Christine Bainbridge, City Clerk ROLL CALL City Clerk Bainbridge called the roll; all Councilmembers were present. APPROVAL OF AMENDED AGENDA: It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the amended agenda. ACTION ITEM: 1. Motion Consideration: CARES Act Funding — Chelsie Taylor, Erik Lamb It was moved by Deputy Mayor Peetz and seconded to approve the amendment to the Interagency Agreement and authorize the City Manager to finalize and execute the Agreement as amended in substantially the form presented. Finance Director Taylor briefly explained about new Attachment 1 to the contract, showing the revised numbers in blue font. Deputy City Attorney Lamb went over the basics of the original funding and allocations, including some direct City expenditures; said notice was received by the Department of Commerce that they would give an additional $1.4 million to the City, and would extend the expenditures deadline from the original October 31 date to November 30. Mayor Wick asked if there were any public comments. City Clerk Bainbridge said we received written e-mail comments from Ms. Jennifer Wilcox, which were previously forwarded to Council, and that Ms. Wilcox supports the motion. There were no other comments. Vote by acclamation: in favor: unanimous. Opposed: None. Motion carried. Deputy City Attorney Lamb explained that the November 30 deadline is tight for spending all the funds; said funds must be spent by mid -November so we can cut checks back to them in time. He noted that staff has been working to determine how much has been spent and to ask what other needs people see where they could spend funds by the November 30 deadline; he noted $2.5 million has been spent which leaves about $1.8 million to allocate and spend by the deadline. Concerning additional funding, he reported that SNAP stated they could spend their entire allocation by the Nov 30 deadline, and they currently do not have capacity to administer any additional amounts. Mr. Lamb reported that Spokane Valley Partners completed the purchase of one vehicle and are working on purchasing the second, and that they could use about $300,000 for food and necessities like diapers. Mr. Lamb also reminded Council that they authorized an agreement with Partners for us to allocate $25,000 with an additional $25,000 which will be part of any award to them toward the diapers need. Concerning the school districts, Mr. Lamb said that Central Valley needs additional funds for protective equipment, East Valley needs another $200,000 for additional protective equipment, and while the other two districts have spent or will be able to spend their allocations before November 30, West Valley stated they have not yet spent their allocation, but have a large order of protective equipment in the process of being delivered, and will have spent their allocation once the delivery takes place, and they do not anticipate additional needs prior to November 30. Council Meeting Minutes: 09-29-2020 Page 1 of 4 Approved by Council: DRAFT Mr. Lamb explained that the Chamber indicated they will allocate all the funds for small businesses, but there are about 88 business that won't get funds under the first round, and it was suggested the FTE (full time equivalent staff) number of 18 was too low for nonprofits; he also noted it was challenging for them to determine how much of their work is in Spokane Valley. Mr. Lamb reported it was suggested to raise that 18 FTE count to 49 to capture more nonprofits, and any funds unspent could be rolled back over into the small businesses. There was also mention that sole proprietorships/independent contractors were awarded funds under the County program, but only eight were eligible to receive the $2,500, whereas other businesses received $10,000. Mr. Lamb noted the additional City funds for these eight could cover the difference between the County's award of $2,500 and the City's maximum award of $7,158. Mr. Lamb mentioned the revised proposed second motion which was sent to Council earlier; said we don't want that money to go to waste and there are several clauses in that motion to address those. Mayor Wick mentioned he heard that the Valley Fire District asked for funding from the Board of County Commissioners for equipment needs, and perhaps that is also something to address. There was further discussion about FTE counts, mental health counsellors, helping the Fire District, mention that the County received about $90 million and of the value of checking with the County and Fire District on their current status. Mr. Lamb indicated that Chamber CEO Lance Beck has joined the zoom meeting, and Mayor Wick invited Mr. Beck to speak. Mr. Beck explained that they could fully fund all eligible applications, which is not the same as every application, but those eligible if there were additional funds; said there would be no problem if Council wanted to consider a fire department request; and that the overall program award is not finalized until they reach the point of application review. Councilmember Woodard mentioned with the County's $60-70 million, he feels the Fire Department would likely get money. It was moved by Councilmember Thompson and seconded to approve allocations of the City's CARES CRF Funds of up to $300, 000 to Spokane Valley Partners, along with amounts previously authorized by City Council; and $100, 000 to Central Valley School District; and $180, 322 to East Valley School District; and the remaining available amount, currently estimated to be $1,216, 480, to Greater Spokane Valley Chamber of Commerce; and that any portion unspent in a timely manner be used by the City to purchase items necessary as a direct result of the COVID-19 pandemic, including but not limited to purchase of PPE, or for other authorized and appropriate municipal purposes; and that all such allocations shall be used for authorized purposes; and further authorize the City Manager to negotiate, finalize, and execute all necessary contracts and contract amendments to carry out such allocations and distributions; and further authorize the City Manager to negotiate, finalize, and execute all necessary contract amendments to existing CARES CRF contracts in order to extend the deadlines to November 30, 2020. To clarify, Mr. Lamb asked about the small businesses and nonprofits, and the proposed change in FTEs for small businesses from 18 to 49 or fewer. There were no objections. Mr. Calhoun mentioned the large efforts on this very complex issue from Mr. Lamb and Ms. Taylor; said we are just 47 days away from the November 15 deadline; he voiced his hope that the Fire Department will be successful with the County, assuming the County has money available, adding that he is not sure of the turnaround time period from the Fire Department since money has to be expended by November 15; he said we will do what we can to make sure to spend all the funds and not leave any on the table. Mayor Wick also extended his appreciation to Mr. Lamb and Ms. Taylor for their work on this item. Vote by acclamation on the second motion, in favor: unanimous. Opposed: none. Motion carried. NON -ACTION ITEMS: 2. Proposed Ordinance Adopting 2021 Property Taxes — Chelsie Taylor Finance Director Taylor went over the proposed property tax ordinance, which will again not include the 1% increase allowed by state law; she noted the levy will however include property taxes on new construction. Director Taylor also briefly explained banked capacity, and mentioned that no action is needed at this time as this is scheduled to return to Council later in October and November, to consider the first and second reading of the 2021 Property Tax Levy Ordinance. Council Meeting Minutes: 09-29-2020 Page 2 of 4 Approved by Council: DRAFT 3. Street Vacation 2020 -0001 — Connor Lange Mr. Lange went through his PowerPoint explaining the background and process for the street vacation request from Hanson Industries, owner of the adjacent properties. There were no objections to moving this forward as proposed for a first ordinance reading at the October 13, 2020 Council meeting. 4. Stormwater Surplus Property — Connor Lange, Carly Johnson Planner Lange gave the history of this surplus property as noted on his Request for Council Action, after which Mr. Driskell, standing in for Ms. Johnson, noted the City has no municipal use or purpose for the property and therefore would like to bring back a resolution for Council consideration, to declare the property surplus. There was Council consensus to do so. 5. Proposed Code Amendments to Cable Franchises — Cary Driskell City Attorney Driskell explained about the recent negotiations with TDS Metrocom, a cable television provider which recently entered into the market as a competitor to Comcast; said he sent draft franchise ordinances to Comcast and TDS for their review and said those two companies were agreeable with the proposed end product. Mr. Driskell said the intent of the changes is to reduce burdensome regulations, and once the code changes are adopted, the franchise will reference SVMC 3.65 rather than restate all the Code provisions. A question arose about the companies building out to the whole City, and Mr. Driskell said based on Council discussions in June, there will not be any build out requirements as previous Council direction was not to require that but instead to rely on market factors. Mr. Driskell also noted we do not regulate Internet, and said there are other options with various prices and speeds for internet connectivity. He mentioned that TDS is eager to proceed and there were no objections from Council to move this forward. 6. Proposed Amended Tourism Promotion Area Interlocal Agreement — Cary Driskell, Erik Lamb City Attorney Driskell went over the history of and our City's participation in the Spokane County Tourism Promotion Area interlocal; he noted that in order to amend the interlocal, the County must receive a requisite number of hoteliers in certain of the six zones to initiate a process to formally amend the TPA interlocal to increase the maximum assessment from $2.00 per room per night, to $4.00 in three of the four designated zones, including hotels in Spokane Valley; and that if initiated, the assessment would be imposed until June 30, 2027. Mr. Driskell said the increases cannot be implemented without amending the interlocal, which requires approval from our City. Mr. Driskell also explained that the termination provision in the interlocal was done away with in 2008 or 2009, and mentioned to Council this would be a good opportunity to at least discuss whether Council would like to include a provision for a definite term, and what reports might be appropriate from the TPA including an annual report stating how much money was raised in each zone, and how those funds were distributed; he added that the hoteliers would like this amendment taken care of soon. There was lengthy discussion about a term for the interlocal; the idea of forming our own TPA; having disclosure of what funds came in, from where and how those funds were spent; whether to have Spokane Valley funds come directly to us; and the idea of having a zone strictly for Spokane Valley. It was also mentioned that our participation in the Hotel/Motel Commission, which was created as part of the establishment of the TPA, includes one non -voting ex officio member, currently Deputy Mayor Peetz, and two voting members/citizens; and that the TPA is managed by contract with Visit Spokane (formerly the Spokane Reginal Convention & Visitors Bureau), which administers the activities and programs and prepares the annual budget for the TPA, which is ultimately approved by the Board of County Commissioners. Mr. Driskell added that the TPA/Hotel Motel Commission is a recommending body. Mr. Driskell said having our own TPA at this point would take quite a bit of time. It was ultimately decided that Mr. Driskell and Mr. Lamb will work on draft language and look at what would be needed to have control over our own jurisdiction and thereby have approval over those expenditures; they will pursue the idea of having our own zone; and will ask for a two-year provision. 7. Trunk or Treat — Police Chief Ellis As Police Chief Ellis went through his PowerPoint, he explained that this year's Trunk or Treat has been cancelled; and now the idea is to plan for an even bigger event next year at perhaps a larger venue, assuming Council Meeting Minutes: 09-29-2020 Page 3 of 4 Approved by Council: DRAFT we have moved beyond the COVID pandemic. Mayor Wick stated that it is his understanding that the State Department of Health just came out with guidance for Halloween and in that guidance, they had a provision to allow Trunk or Treat with some conditions. Chief Ellis said he wished they had come out with guidance earlier as this is a big event and takes a several months to plan. 8. Advance Agenda — Mayor Wick There were no suggested changes to the Advance Agenda. 9. Council Comments — Mayor Wick Councilmember Thompson extended congratulations to former Mayor and City Councilmember Diana Wilhite, one of the Inland NW Women of the Year. Mayor Wick announced that due to a resignation from a Planning Commissioner, we have an opening and anyone interested should go to the City's website for an application. 10. City Manager Comments — Mark Calhoun City Manager Calhoun had no comments. 11. Executive Session [RCW 42.30.110(1)(i)] Potential Litigation It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to adjourn into executive session for approximately twenty minutes to discuss potential litigation, and that no action will be taken upon return to open session. Council adjourned into executive session at 7:46 p.m. At 8:03 p.m. Mayor Wick declared Council out of executive session at which time it was moved, seconded and unanimously agreed to adjourn. ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Council Meeting Minutes: 09-29-2020 Page 4 of 4 Approved by Council: CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 13, 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: Approval of Resolution 20-014 declaring easterly 110 feet of Spokane County Parcel number 55172.0159 surplus. GOVERNING LEGISLATION: SVMC 3.49.020. PREVIOUS COUNCIL ACTION TAKEN: Administrative report September 29, 2020. BACKGROUND: On February 26, 2019, the City purchased from Spokane County a small parcel abutting a City -owned stormwater swale located on North Barker Road. The property bisects two privately owned parcels to the north and south. The rectangular parcel is 7.5 feet by 210 feet, resulting in a very narrow strip of land. The City paid $112.64 for the 1,575 square foot parcel, Spokane County parcel number 55172.0159. The County owned the property following a tax foreclosure in 2015 until the City's purchase in 2019. Currently, the City uses the westerly portion of the parcel adjacent to the stormwater swale to access the Swale. A developer recently approached staff regarding purchasing the easterly 110 feet of the parcel not adjacent to the stormwater swale. That portion of the parcel is approximately 825 square feet and separates 1204 and 1216 N Barker Road (parcel numbers 55172.0135 and 55172.0114 respectively). The developer owns both lots and would like to apply for a boundary line adjustment to adjust the section of 55172.0159 separating the two parcels, resulting in the two lots no longer being separated by the small strip of land Before completion of the boundary line adjustment, the City Council would need to declare the property surplus, and arrange to sell it to the land owner, pursuant to SVMC 3.49.020. Staff recommends declaring the property surplus to the needs of the City because the City neither has, nor anticipates having, a practical, efficient, or appropriate use for the identified portion of 55172.0159. Community and Public Works staff has indicated the City's use of the property extends only to the section of the parcel adjacent to the stormwater swale. Pursuant to SVMC 3.49.020, once declared surplus, the City Manager would be authorized to dispose of the property using procedures the City Manager deems to be in the best interests of the City. Additionally, an appraisal would be unnecessary since the City recently purchased the property, so we have a recent valuation. If approved for surplus, staff recommends a pro-rata sale of the easterly 110 foot portion of the parcel. In this case, the value of the property is about $0.07 per square foot. Thus, as a pro-rata sale, the easterly 110 feet of the parcel would sell for about $60.00. After the sale, the developer would initiate and pay for the boundary line adjustment, pay the application fees, and any other associated recording fees. OPTIONS: (Approve Resolution 20-014 declaring the property surplus to the needs of the City and authorize the City Manager to dispose of the property RECOMMENDED ACTION OR MOTION: Move to approve Resolution 20-014 declaring the easterly 110 feet of the property known as Spokane County parcel number 55172.0159 surplus to the needs of the City and authorize the City Manager to dispose of the property pursuant to RCW 3.49.020. [Approved as part of the Consent Agenda, or may be removed and discussed separately.] BUDGET/FINANCIAL IMPACTS: Net funds to City of approximately $60.00. STAFF CONTACT: Cary Driskell, City Attorney; Carly Johnson, Legal Intern; Connor Lange, Planner. ATTACHMENTS: Proposed Resolution 20-014; Aerial map showing the property DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 20-014 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, DECLARING REAL PROPERTY TO BE SURPLUS; AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE ALL DOCUMENTS NECESSARY TO SELL SAID REAL PROPERTY; AND OTHER MATTERS RELATING THERETO. WHEREAS, Spokane Valley Municipal Code (SVMC) 3.49.020(A) requires that real property be declared surplus by the Spokane Valley City Council prior to its disposal; and WHEREAS, the criteria for a declaration that the property is surplus to the needs of the City are set forth in SVMC 3.49.020(A), and includes that the City has or anticipates no practical, efficient, or appropriate use for the property; and WHEREAS, upon such a declaration passed by resolution of the Spokane Valley City Council, the City Manager is authorized to dispose of surplus real property pursuant to SVMC 3.49.020(B); and WHEREAS, City department directors have been notified of the surplus nature of this property, the easterly 110 feet of Spokane County parcel number 55172.0159, and no department has any desire to acquire or use the proposed surplus property. The section of the property for surplus is comprised of approximately 825 square feet of land; and WHEREAS, the City purchased the property from Spokane County February 26, 2019 for $112.64, and City staff recommends it be declared surplus to the needs of the City; and WHEREAS, following Council declaration of surplus, it will be necessary to perform a boundary line adjustment to remove the approximately 825 square feet from parcel 55172.0159, and add it to one of the two adjoining parcels, and the cost of said boundary line adjustment may be charged to the acquiring party as part of the consideration for the purchase; and WHEREAS, the City intends to use the proceeds from any sale for other municipal purposes that are more beneficial to the needs of its residents. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington as follows: Section 1. Declaration of Surplus. The Spokane Valley City Council hereby declares that the portion of the real property referred to as Spokane County parcel number 55172.0159, and legally identified as: The east 110 feet of the north 7.5 feet of the south 15 feet of the north half measured at right angles to the south line of Lot 12, Block 1 of Corbin Addition to Greenacres recorded in book S, page 30 of Plates. Located within the northwest quarter of Section 17, Township 25, Range 45. Situate in the City of Spokane Valley, County of Spokane, State of Washington. Resolution 20-014 Declaring Real Property as Surplus Page 1 of 2 DRAFT is surplus to the needs of the City, and the City has no practical, efficient, or appropriate use for the property. The property being declared surplus is identified by parcel map in Attachment 1 to this Resolution. Section 2. Authorization to dispose of surplus property. The City Manager is authorized to dispose of the surplus real property identified in this Resolution pursuant to SVMC 3.49.020(B), which states that, for surplus real property, the City Manager shall secure a market value appraisal and proceed to sell the same by public auction or through other procedures the City Manager deems to be in the best interests of the City. The requirement for an appraisal has been satisfied through obtaining the property from Spokane County on February 26, 2019. Section 3. Effective Date. This Resolution shall be effective upon adoption. Adopted this 13' day of October, 2020. CITY OF SPOKANE VALLEY Ben Wick, Mayor ATTEST: Christine Bainbridge, City Clerk Approved as to form: Office of the City Attorney Resolution 20-014 Declaring Real Property as Surplus Page 2 of 2 r 40 80 Feet Property Surplus BLA Spokane Valley, WA J4Ei Barker eo &A, HERE, eartah, G o 0 ©am 0 0 ', bit] tiG S -tubar coamirinitudLigtauf E (l p lob o o c eoEv; C 1Gan_-t r 4 � G�BC o ap ki Gip �°,wee, ' - m, OCC[� �� CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 13, 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: Second 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; October 6, 2020 first ordinance reading. 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) Approve Ordinance 20-012 with or without modifications; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: I move we approve Ordinance 20-012 amending chapter 3.65 SVMC relating to cable television franchises. 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 30 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. 44A. 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 buildings as designated by the City, fire station(,), police station(s), libraries and state accredited K 12 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 ef ,a.t e cgs per one quarter mile of cable contiguous t^ th-e s ten 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 grantee 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 grantee 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 grantee, grantee 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 grantee to file rates and charges under temporary reductions or waivers of rates and charges in conjunction with promotional B. A grantee 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 written notice o f ar in t:a, meeti„,. to develop , rleme tation plan f r 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 includeprovide 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. 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 ifcon-ireetions. 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—mental 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 13, 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: First Reading Ordinance No. 20-013 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: Admin Reports 9-22-2020 and 10-6-2020 BACKGROUND: The proposed amendment is a City -initiated code text amendment to chapter 19.25 SVMC. The amendment originally proposed was to prohibit the expansion of a nonconforming use onto adjacent lots and to clarify that residential uses located in nonresidential zones are permitted uses. The Planning Commission (Commission) review resulted in a proposal to modify the criteria to allow for expansion outside of the original property boundaries onto properties commonly owned at the time the use became nonconforming. After consideration the City Council further modified the criteria to allow for expansion onto properties that were under the same ownership and had the same zoning classification at the time of purchase. 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. CTA 2020-0003 proposes to modify the criteria which allows for expansion outside of the original property boundaries, but as modified by the Commission allow expansion onto properties having the same ownership at the time the use became nonconforming. 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 the original lots became nonconforming. The Council directed staff to bring back language for further discussion and on October 13th agreed to advance the CTA to a first reading of the ordinance. Additionally, CTA-2020-0003 included a proposed revision to Chapter 19.25 SVMC that identifies a residential structure in a nonresidential zone as a permitted structure not subject to the nonconforming use regulations. During the September 22, 2020 discussion, Council indicated concurrence on this section of the proposal. OPTIONS: Move to advance Ordinance 20-013 to a second reading with or without further amendments, or take other action deemed appropriate. RECOMMENDED ACTION OR MOTION: Move to advance Ordinance 20-013 to a second reading as proposed. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Jenny Nickerson, MCP, Building Official, Community and Public Works Dept. ATTACHMENTS: A. Draft Ordinance No. 20-013 B. Planning Commission's Findings of Fact and recommendation C. Planning Commission Meeting Minutes: 7/23/2020, 8/13/2020, and 8/27/2020 D. Staff Report CTA-2020-0003 Draft CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 20-013 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON AMENDING CHAPTER 19.25 OF THE SPOKANE VALLEY MUNICIPAL CODE RELATED TO NONCONFORMING USES, AND OTHER MATTERS RELATING THERETO. WHEREAS, the City of Spokane Valley (City) previously adopted Title 19 of the Spokane Valley Municipal Code (SVMC) relating to zoning and land use regulations, and has made subsequent amendments from time -to -time as appropriate; and WHEREAS, such regulations are authorized pursuant to chapter 36.70A RCW; and WHEREAS, City staff have proposed amendments to the SVMC to amend chapter 19.25 SVMC to allow nonconforming uses to expand onto properties that were under the same ownership and had the same zoning classification at the time of purchase and to consider a residential use in a nonresidential zone as a permitted use not subject to the nonconforming use regulations; and WHEREAS, on July 21, 2020 the Washington State Department of Commerce was notified pursuant to RCW 36.70A.106, providing a notice of intent to adopt amendments to Spokane Valley development regulations; and WHEREAS, on July 23, 2020, the Planning Commission (Commission) held a study session; and WHEREAS, on July 24 and 31, 2020, notice of the Commission's public hearing was published in the Valley News Herald; and WHEREAS, on August 13, 2020, the Commission held a public hearing, received evidence, information, public testimony, and a staff report with a recommendation, followed by deliberations; and WHEREAS, on August 27, 2020, the Commission approved the findings and recommended that City Council adopt the amendments with the modifications proposed by the Commission; and WHEREAS, on September 22, 2020 and October 6, 2020, City Council reviewed the proposed amendments and Commission Findings and Recommendations; and WHEREAS, on October 13, 2020 City Council considered a first ordinance reading to adopt the proposed amendments; and WHEREAS, the amendments set forth below are consistent with the goals and policies of the City's Comprehensive Plan; and WHEREAS, chapter 19.25 SVMC as amended, bears a substantial relation to the public health, safety, welfare and protection of the environment. NOW, THEREFORE, the City Council of the City of Spokane Valley ordains as follows: Section 1. Purpose. The purpose of this Ordinance is to amend chapter 19.25 SVMC to allow nonconforming uses to expand onto properties that were under the same ownership and had the same zoning classification at the time of purchase, and to consider a residential use in a nonresidential zone as a permitted use not subject to the nonconforming use regulations. Ordinance 20-013 —Nonconforming Use Regulations Page 1 of 5 Draft Section 2. Findings and Conclusions. The City Council acknowledges that the Planning Commission conducted appropriate investigation and study, held a public hearing on the proposed amendments and recommends approval of the amendments. The City Council has read and considered the Planning Commission's findings. The City Council hereby makes the following findings: A. Growth Management Act Policies - Washington State Growth Management Act (GMA) provides that each city shall adopt a comprehensive land use plan and development regulations that are consistent with and implement the comprehensive plan. B. City of Spokane Valley Goals and Policies - The City of Spokane Valley has adopted goals and policies consistent with the GMA and adopted County -Wide Planning Policies, set forth below. 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. C. Conclusions 1. The proposed amendments bear a substantial relation to public health, safety, welfare and protection of the environment. Allowing nonconforming uses to operate and expand on site, 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 and zoning classification 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. The rights and interests of the property owners are balanced against the limits on nonconforming uses on other neighboring properties because 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 amendments recognize 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. Ordinance 20-013 —Nonconforming Use Regulations Page 2 of 5 Draft 2. The proposed City -initiated Code text amendment is consistent with the City's adopted Comprehensive Plan and the approval criteria pursuant to SVMC 17.80.150(F). Section 3. Amendment. Chapter 19.25 SVMC is hereby amended as follows: 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 structuresuses 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. 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 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 and zoning classification 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; Ordinance 20-013 —Nonconforming Use Regulations Page 3 of 5 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 34. The expansion does not create additional development opportunities on adjacent lots that would not otherwise exist.-; and 4. The use is not a single-family residential use. E. A nonconforming use in a nonresidential zoning district may be expanded only within the boundaries of the 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 that the original use; and 3. The expanded use does not adversely impact the use of neighboring property. EE. Residential lots made nonconforming relative to dimensional requirements shall be deemed conforming if the use is allowed in the respective zoning district. FG. 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. G1. 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. 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. Ordinance 20-013 —Nonconforming Use Regulations Page 4 of 5 Draft 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 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. Section 5. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance. Section 6. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City of Spokane Valley as provided by law. Passed by the City Council this 27th day of October, 2020. ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Approved as to Form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 20-013 —Nonconforming Use Regulations Page 5 of 5 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. H. 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 vole 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. 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), "if a structure is damugcd b}afire, 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 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-Pes-identiakenes 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 concurrerrtlp with the transfer of ownership of the lot on which the nonconforming use is locates as part of a single transaction; and 4. The expansion does not create additional development opportzmities 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 firmily 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 located 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 IVlinntes 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. H. 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 100`h 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 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/planningcominission. 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. ATTACIIMENTS: 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 Exliibit 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 userstructures located in a nonresidential zoning district shall not be deemed noncontormine. and shall be permitted as a lcaal usestructure. 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. B) 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, tnay 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 shalt 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 i-resicletxiul zime4-may be expanded only within the boundaries of the original lot mid any - adjacent lot hawing tl c same ownership as the -let 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 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. E. A-r e n-lea g nfe :,r. ,eja-1 z ri:-trict may be cap 4le4*1n y-* 4thin the-l*aundaries o-thy adjec-eNt to the original lot. il: 1. `1"h o.�igi„tH ~ d Lhc ..c xrnsion" lot arc in the scum zoning district: 2. "fhe ll ntlet ,._•., �toc rn-degrade fhe-transpe+1t44on level of service greater than the original use: 7+td 3-.The ndyd_use.r,.., ...,._tdve.,__.,_y.._im act-thrtr,eofncivhborineproperly. 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 tnay 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 dint ict; 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). 1.9.25.040 Completion of permanent structures. Compliance with Chapter 19.25 SVMC shall not require changes to the plans, construction, or designated use ofa 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 13, 2020 Department Director: Check all that apply: ['consent n old business ® new business n public hearing n information n admin. report n pending legislation AGENDA ITEM TITLE: First Reading of Proposed Ordinance 20-014 — Street Vacation of Desmet Court GOVERNING LEGISLATION: Spokane Valley Municipal Code (SVMC) 22.140; Revised Code of Washington (RCW) 35A.47.020 and RCW 35.79 PREVIOUS ACTION TAKEN: At the July 28, 2020 City Council meeting, a public hearing date was set with the Planning Commission for August 27, 2020. On September 29, 2020, City Council heard an administrative report on the proposed street vacation. BACKGROUND: The City received an application on May 28, 2020 from Hanson Industries, the owner of the adjacent properties, requesting a street vacation of 210-feet of Desmet Court. The total area to be vacated for Desmet Court is approximately 12,847 square feet. The right-of-way width is 48-feet and increases to 95-feet wide at a cul-de-sac. Upon vacation, right-of-way immediately west along Desmet to terminate in a cul-de-sac will be dedicated to the City. The property owner is making a request for the following reasons: 1. The proposed vacation will reduce the length of Desmet Court by 210-feet and dedicate a new cul-de-sac to serve the public use. 2. The vacation of Desmet Court will not impact circulation of City streets, there is no right-of- way available for a future connection to Flora Road to the east. 3. The vacation will allow maximum use of abutting properties because parcels 45131.0507, 45131.0509 and 45131.0510, owned by Hanson Industries, account for the all of the abutting properties of ownership along Desmet Court. The right-of-way for Desmet Court was dedicated as part of the recording for Binding Site Plan (BSP) 02- 09 on September 10th, 2009. The BSP dedicated 48-feet of right-of-way and a cul-de-sac with a 50.50- foot radius. In addition to the right-of-way, a 16-foot border easement and 10-foot utility easement was required along the entire street frontage of Desmet Court. Along the north side of the cul-de-sac (Lot 7 of the BSP) a 20-foot wide sewer easement was required by Spokane County Division of Utilities and a 16- foot wide border and utility easement was also required. The modification of the easements in order to relocate the cul-de-sac will require a Final BSP Alteration as a condition of street vacation approval. The site contains both city facilities (pavement) and utility improvements (cable, internet, sewer, gas and power). Comcast, Century Link, Avista Utilities, Spokane County Environmental Services and Consolidated Irrigation District #19 all have provided comments demonstrating the existence of their facilities within the right-of-way or easements. These facilities will all need to be relocated to the new cul-de-sac location at the time of dedication. The Planning Commission conducted a study session on August 13, 2020 and a public hearing on August 27, 2020. Following public testimony and deliberations, the Planning Commission voted 5-0 to recommend approval of the proposal (as described above) to vacate the cul-de-sac for Desmet Court. The findings and recommendations were approved by the Planning Commission on September 10, 2020. RCA 1st Ordinance Reading for STV-2019-0002 Page 1 of 2 SVMC Section 22.140.040 directs City Council to consider the Planning Commission's findings, conditions and/or limitations appropriate to preserve the public use or benefit and the division of the vacated right-of-way among abutting property owners. RCW 35.79.030 provides the framework for determining whether compensation for the right-of-way to be vacated is allowed: "If the street or alley has been part of a dedicated public right-of-way for twenty-five years or more, or if the subject property or portions thereof were acquired at public expense, the city or town may require the owners of the property abutting the street or alley to compensate the city or town in an amount that does not exceed the full appraised value of the area vacated. " However, the right-of-way proposed to be vacated was dedicated 11 years ago in 2009. Additionally, the right-of-way was obtained through a platting action (binding site plan) and was not acquired at the public expense. Therefore, the City cannot ask for compensation regarding the vacation of Desmet Court. OPTIONS: Move to advance to a second reading with or without further amendments. RECOMMENDED ACTION: Move to advance Ordinance # 20-014 to a second reading at the October 27, 2020 Council meeting. STAFF CONTACT: Connor Lange, Planner ATTACHMENTS: 1. Presentation 2. Draft Ordinance 20-014 3. Signed Planning Commission Findings and Recommendation 4. Staff Report and Recommendation to the Planning Commission 5. Approved Planning Commission Meeting Minutes August 13, 2020 6. Approved Planning Commission Meeting Minutes August 27, 2020 7. Approved Planning Commission Meeting Minutes September 10, 2020 8. SVMC Section 22.140 (Street Vacations) RCA 1" Ordinance Reading for STV-2019-0002 Page 2 of 2 Hanson Industries Street Vacation STV-2020-0001 Ordinance No. 20-014 First Reading October 13, 2020 Spokane ��Ualley Process: CtL • C- • • 4" • Study Session '� 8-13-2020 1 0 •E Findings of Fact 9-10-2020 a Public Hearing 8-27-2020 Administrative Report Ordinance 1st U ^" Reading Ordinance 2nd Reading Conditions satisfied Today Staff Review Desmet Court vacated 1 Spokane .Valley 2 0 — ➢0 Desmet Court street vacation Z Esri, HERE, Gamin, (c) OprnStreetMap contributors, and the GIS user community *Wane e .Daley 3 Proposed Street Vacation: LOT 11 BSI, 02-09 LO I 6 DESMET COURT 44.0 8I N89.49'33"W R27.5. ♦ y\\ • \♦‘SSS\♦\♦S. .0- 7 • "49'• 3'�.' 47.66 R 52.5. AREA OF NCW DCDICATION LOT 10 CUSP 02 0 ARFA OF PR OPCISCD VACATION LOT 5 PROJ 6: 20-2E05 DATE: EN 20 DRAWN: DAC APPROVED: DAC BEALE: I"-5D ROADWAY DEDICATION EXHIBIT DESMET COURT WITHIN BINDING SITE PLAN 02-09 SP❑KANE VALLEY, WASHINGTON 4WC E YM119'Lt CYJNGULIINC ENGINE I`. IAOLANDERANSPCFTAIEDN ENGE.EHE. 175711 N('.RT SI I IVAN APPLICANT'S REASON FOR REQUEST: ➢ Reduces length of Desmet Court by 210-feet. ➢ No feasible future right-of-way connection ➢ Allow maximum use of abutting properties ➢ All adjacent land belongs to single owner S iO ane .0jValley 4 City Council Considerations: ➢ Planning Commission findings; ➢ Conditions and/or limitations deemed appropriate to preserve public use or benefit; Spokane ��Ua ley DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 20-014 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY WASHINGTON, PROVIDING FOR A RIGHT-OF-WAY VACATION OF APPROXIMATELY 12,847 SQUARE FEET OF DESMET COURT ADJACENT TO THREE PARCELS (45131.0507, 45131.0509 AND 45131.0510) AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO. WHEREAS, on May 28, 2020, a completed application for vacation was filed requesting the vacation of Desmet Court of approximately 12,847 square feet; and WHEREAS, on July 28, 2020, the City Council by Resolution 20-012 set a public hearing date for August 27, 2020 with the Planning Commission; and WHEREAS, on August 27, 2020, the Planning Commission held a public hearing; and WHEREAS, following the hearing, the Planning Commission found that the notice and hearing requirements of Spokane Valley Municipal Code (SVMC) 22.140.020 had been met; and WHEREAS, the Planning Commission findings and minutes have been filed with the City Clerk as part of the public record supporting the vacation; and WHEREAS, none of the property owners abutting the street to be vacated filed a written objection to the proposed vacation with the City Clerk; and WHEREAS, pursuant to chapter 22.140 SVMC, upon vacation of the street, the City shall transfer the vacated property to abutting property owners, the zoning district designation of the properties adjoining the street shall attach to the vacated property, a record of survey shall be submitted to the City, and all direct and indirect costs of title transfer to the vacated street shall be paid by the proponent or recipient of the transferred property. In this particular case, the vacated property shall be transferred to parcels 45131.0507, 45131.0509 and 45131.0510; and WHEREAS, the City Council desires to vacate the above street pursuant to chapter 22.140 SVMC. NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County, Washington, do ordain as follows: Section 1. Findings of Fact. The City Council makes the following findings of fact: 1. The area proposed to be vacated is currently serving three vacant parcels owned by Hanson Industries. The dedication of the cul-de-sac further west is being required as a condition of the vacation in order to provide the same level of service to the public. The street vacation requires the relocation of the border easement and utility easements in order to serve the public interest. The vacated street will allow for maximum use of the property. 2. The existing cul-de-sac will no longer be required for public access with the new design and dedication of the new cul-de-sac further west. The new cul-de-sac, border easement and utility easement will provide the same level of service as is currently provided. 3. The new cul-de-sac will serve the public better because it allows Hanson Industries to maximize the use of their property in an area where urban services are in place. 4. There is no additional right-of-way east of Desmet Court that would allow for a future connection to Flora Road. Therefore, the dedication of the cul-de-sac will provide an equal level of service to the public. Spokane Valley Public Works has expressed support of the street vacation. Ordinance 20-014 - Street Vacation STV-2020-0001 Page 1 of 4 DRAFT 5. No objections or public comment has been received. The utility providers all provided comments supporting the street vacation of Desmet Court if all their utilities are moved (at the owner/developers expense) to their acceptance and approval. 6. The subject ROW is adjacent to parcels 45131.0507, 45131.0509 and 45131.0510 and title shall vest to each parcel for 50 percent of the right-of-way dedicated. 7. Resolution 07-009 and RCW 35.79.030 states that compensation can be requested from the City for a vacation "If the street or alley has been part of a dedicated public right-of-way for twenty-five years or more, or if the subject property or portions thereof were acquired at public expense, the city or town may require the owners of the property abutting the street or alley to compensate the city or town in an amount that does not exceed the full appraised value of the area vacated." However, the right-of-way proposed to be vacated was dedicated 11 years ago in 2009. Additionally, the right-of-way was obtained through a platting action (binding site plan) and was not acquired at the public expense. Therefore, the City cannot ask for compensation regarding the vacation of Desmet Court. Section 2. Property to be Vacated. Based upon the above findings and in accordance with this Ordinance, the City Council does hereby vacate the street or alley which is incorporated herein by reference, and legally described as follows: DESMET COURT VACATION A PARCEL OF LAND LOCATED IN THE NORTHEAST QUARTER OF SECTION 13, TOWNSHIP 25 NORTH, RANGE 44 EAST, WILLAMETTE MERIDIAN, BEING A PORTION OF BINDING SITE PLAN BSP-02-09, RECORDED IN BOOK 3 OF BINDING SITE PLANS, PAGE 20, RECORDS OF SPOKANE COUNTY, WASHINGTON, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; BEGINNING AT POINT ON THE NORTH BOUNDARY OF DESMET COURT, SAID POINT BEING THE CORNER COMMON TO LOTS 6 AND 7 OF SAID BINDING SITE PLAN, THENCE SOUTH 89°49'33" EAST FOLLOWING THE RIGHT OF WAY OF DESMET COURT, AS SHOWN IN SAID BINDING SITE PLAN, A DISTANCE OF 174.95 FEET, TO A POINT OF CURVATURE OF A CURVE TO THE RIGHT. SAID CURVE HAVING A RADIUS OF 50.50 FEET, AND A DELTA ANGLE OF 250°01'29"; THENCE ALONG SAID CURVE, A DISTANCE OF 220.37 FEET, TO A POINT OF REVERSE CURVATURE AND THE BEGINNING OF A CURVE TO THE LEFT. SAID CURVE HAVING A RADIUS OF 30.00 FEET, AND A DELTA ANGLE OF 70°01 '29 "; THENCE ALONG SAID CURVE, A DISTANCE OF 36.66 FEET, TO A POINT OF TANGENCY, THENCE NORTH 89°49'33" WEST, A DISTANCE OF 50.58 FEET, TO THE POINT OF CURVATURE OF A NON TANGENT CURVE TO THE LEFT. SAID CURVE HAVING A RADIUS OF 50.50 FEET, A DELTA ANGLE OF 85°12'53" AND A CHORD WHICH BEARS NORTH 45°15 "39" WEST, 68.37 FEET; THENCE LEAVING SAID RIGHT OF WAY OF DESMET COURT, FOLLOWING SAID CURVE A DISTANCE OF 75.10 FEET, TO THE POINT OF BEGINNING, AND THE TERMINUS OF HIS DESCRIPTION. SAID PARCEL CONTAINS 12,847.3 SQUARE FEET, OR 0.29 ACRES, MORE OR LESS. Section 3. Division of Property to be Vacated. Pursuant to RCW 35.79.040 and SVMC 22.140.040(C), the vacated portion of the street or alley shall belong to the abutting property owners, one- half to each, unless factual circumstances otherwise dictate a different division and distribution of the street or alley to be vacated. In this case the street to be vacated is adjacent to parcels 45131.0507, 45131.0509 and 45131.0510. The right-of-way shall be divided in half to each side of the right-of-way. The completion of the vacation shall be recorded in the record of survey which shall be created and recorded with Spokane County as required pursuant to SVMC 22.140.090. Ordinance 20-014 - Street Vacation STV-2020-0001 Page 2 of 4 DRAFT Section 4. Zoning. The zoning designation for the vacated street shall be the designation attached to the adjoining properties as set forth within the respective property or lot lines. The City Manager or designee is authorized to make this notation on the official Zoning Map of the City. Section 5. Conditions of Vacation. The following conditions shall be fully satisfied prior to the transfer of title by the City. 1. Initial work to satisfy conditions of the street vacation (File No. STV-2020-0001), including all conditions below shall be submitted to the City for review within 90 days following the effective date of approval by the City Council. 2. The vacated property shall be transferred into the abutting parcels (45131.0507, 45131.0509 and 45131.0510) as shown on the record of survey created and recorded with Spokane County Auditor's Office pursuant to condition 10. 3. The following easements shall be established. Submit recording number on record of survey and written documentation of easement for City verification. a. An easement acceptable to Spokane County Environmental Services for access to public sewer 30-feet in width centered on the existing pipe. 4. Applicant shall submit a Final BSP Alteration application concurrently with the record of survey for the street vacation for review. The street vacation record of survey cannot be recorded until the Final BSP Alteration has been approved and is ready to record. The final map shall include the following relocated easements/dedications: a. A 16-foot border easement adjacent to newly dedicated right-of-way. b. A 10-foot utility easement running parallel to the border easement around the cul- de-sac. c. The dedication of right-of-way for a cul-de-sac with a 52.50-foot radius in compliance with the Spokane Valley Standard Plan R-130. 5. All the existing utilities located in the right-of-way, border easement and utility easements shall be relocated at the expense of the owner/developer prior to recording the street vacation. Verification from all of the utility purveyors must be received prior to recording the street vacation that their utilities have been relocated in an acceptable manner. 6. Following the City Council's passage of the Ordinance approving the street vacation, a record of survey of the area to be vacated, prepared by a registered surveyor in the State of Washington, including an exact metes and bounds legal description, and specifying any and all applicable easements for construction, repair and maintenance of existing and future utilities and services, shall be submitted by the proponent to the City Manager, or designee, for review. 7. The surveyor shall locate a monument at the intersection of the centerline of the vacated right-of-way with each street or right-of-way in accordance with the standards established by the SVSS. 8. All direct and indirect costs of title transfer of the vacated street from public to private ownership, including but not limited to, title company charges, copying fees, and recording fees shall be paid by the proponent. The City shall not and does not assume any financial responsibility for any direct or indirect costs for the transfer of title. 9. The zoning district designation of the properties adjoining the street to be vacated shall be automatically extended to the center of such vacation, and all area included in the vacation shall then and henceforth be subject to all regulations of the districts. The adopting Ordinance 20-014 - Street Vacation STV-2020-0001 Page 3 of 4 DRAFT Ordinance shall specify this zoning district extension inclusive of the applicable zoning district designations. 10. The record of survey and certified copy of the Ordinance shall be recorded by the City Clerk in the office of the Spokane County Auditor. 11. All conditions of City Council authorization shall be fully satisfied prior to any transfer of title by the City. Section 6. Closing. Following satisfaction of the above conditions, the City Clerk shall record a certified copy of this Ordinance in the office of the County Auditor, and the City Manager is authorized to execute and finalize all necessary documents in order to complete the transfer of the property identified herein. Section 7. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 8. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City of Spokane Valley as provided by law. PASSED by the City Council this day of October, 2020. ATTEST: Ben Wick, Mayor Christine Bainbridge, City Clerk Approved As To Form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 20-014 - Street Vacation STV-2020-0001 Page 4 of 4 FINDINGS AND RECOMMENDATIONS OF THE SPOKANE VALLEY PLANNING COMMISSION STV-2020-0001 Street vacation of a portion of Desmet Court 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. A. Background: 1. Chapter 22.140 of the Spokane Valley Municipal Code (SVMC), governing street vacations, was adopted in September 2007 and became effective on October 28, 2007. 2. The privately -initiated street vacation, STV-2020-0001, to vacate the east 210-feet of Desmet Court and subsequently dedicate public right-of-way in the form of a cul-de-sac to the west providing the same level of service. 3. The Planning Commission held a public hearing and conducted deliberations on August 27, 2020. The Planning Commission voted 5-0 to recommend approval of STV-2020-0001 to the City Council. B. Planning Commission Findings: Compliance with SVMC 22.140.030 Planning Commission review and recommendation Finding(s): 1. Whether a change of use or vacation of the street or alley will better serve the public? The area proposed to be vacated is currently serving three vacant parcels owned by Hanson Industries. The dedication of the cul-de-sac further west is being required as a condition of the vacation in order to provide the same level of service to the public. The street vacation requires the relocation of the border easement and utility easements in order to serve the public interest. The vacated property will allow for maximum use of the property. 2. Whether the street or alley is no longer required for public use or public access? The existing cul-de-sac will no longer be required for public access with the new design and dedication of the new cul-de-sac further west. The new cul-de-sac, border easement and utility easement will provide the same level of service as is currently provided. 3. Whether the substitution of a new and different public way would be more useful to the public? The new cul-de-sac will serve the public better because it allows Hanson Industries to maximize the use of their property in an area where urban services are in place. 4. Whether conditions may so change in the future as to provide a greater use or need than presently exists? Findings and Recommendations of the Spokane Valley Planning Commission STV-2020-0001 Page 1 of 3 There is no additional right-of-way east of Desmet Court that would allow for a future connection to Flora Road. Therefore, the dedication of the cul-de-sac will provide an equal level of service to the public. Spokane Valley Public Works has expressed support of the street vacation. 5. Whether objections to the proposed vacation are made by owners of private property (exclusive of petitioners) abutting the street or alley or other governmental agencies or members of the general public? No objections or public comment has been received. The utility providers all provided comments supporting the street vacation of Desmet Court if all their utilities are moved (at the owner/developers expense) to their acceptance and approval. Conclusion: The findings confirm criteria set forth in SVMC 22.140.030 have been met. C. Recommendation: The Spokane Valley Planning Commission therefore recommends the City Council approve STV-2020- 0001 for Desmet Court subject to the following: 1. Initial work to satisfy conditions of the street vacation (File No. STV-2020-0001), including all conditions below shall be submitted to the City for review within 90 days following the effective date of approval by the City Council. 2. The vacated property shall be transferred into the abutting parcels (45131.0507, 45131.0509 and 45131.0510) as shown on the record of survey created and recorded with Spokane County Auditor's Office pursuant to condition 10. 3. The following easements shall be established. Submit recording number on record of survey and written documentation of easement for City verification. a. An easement acceptable to Spokane County Environmental Services for access to public sewer 30-feet in width centered on the existing pipe. 4. Applicant shall submit a Final BSP Alteration application concurrently with the record of survey for the street vacation for review. The street vacation record of survey cannot be recorded until the Final BSP Alteration has been approved and is ready to record. The final map shall include the following relocated easements/dedications: a. A 16-foot border easement adjacent to newly dedicated right-of-way. b. A 10-foot utility easement running parallel to the border easement around the cul-de-sac. c. The dedication of right-of-way for a cul-de-sac with a 52.50-foot radius in compliance with the Spokane Valley Standard Plan R-130. 5. All the existing utilities located in the right-of-way, border easement and utility easements shall be relocated at the expense of the owner/developer prior to recording the street vacation. Verification from all of the utility purveyors must be received prior to recording the street vacation that their utilities have been relocated in an acceptable manner. Findings and Recommendations of the Spokane Valley Planning Commission STV-2020-0001 Page 2 of 3 6. Following the City Council's passage of the Ordinance approving the street vacation, a record of survey of the area to be vacated, prepared by a registered surveyor in the State of Washington, including an exact metes and bounds legal description, and specifying any and all applicable easements for construction, repair and maintenance of existing and future utilities and services, shall be submitted by the proponent to the City Manager, or designee, for review. 7. The surveyor shall locate a monument at the intersection of the centerline of the vacated right-of- way with each street or right-of-way in accordance with the standards established by the SVSS. 8. All direct and indirect costs of title transfer of the vacated street from public to private ownership, including but not limited to, title company charges, copying fees, and recording fees shall be paid by the proponent. The City shall not and does not assume any financial responsibility for any direct or indirect costs for the transfer of title. 9. The zoning district designation of the properties adjoining the street to be vacated shall be automatically extended to the center of such vacation, and all area included in the vacation shall then and henceforth be subject to all regulations of the districts. The adopting Ordinance shall specify this zoning district extension inclusive of the applicable zoning district designations. 10. The record of survey and certified copy of the Ordinance shall be recorded by the City Clerk in the office of the Spokane County Auditor. 11. All conditions of City Council authorization shall be fully satisfied prior to any transfer of title by the City. Approved this loth day of September, 2020 Planning Commissidn Chairman ATTEST Marianne Lemons, Office Assis Findings and Recommendations of the Spokane Valley Planning Commission STV-2020-0001 Page 3 of 3 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 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. 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), "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 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, f. 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; and 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 located 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. XL 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 Deanna Horton, Secretary D7�2��Zo2o Date signed 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: 1 08-27-2020 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 13, 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 1-11 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 staff's 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.m. 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. XL 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 Deanna Horton, Secretary 6��Z4�vzo Date signed 4 Regular Meeting Minutes Spokane Valley Planning Commission Council Chambers — City Hall September 10, 2020 I. Chair Johnson called the meeting to order at 6:03 p.m. The meeting was held remotely via ZOOM meeting. II. Commissioners, staff and audience stood for the pledge of allegiance. III. Administrative Assistant Deanna Horton took roll and the following members and staff were present: Fred Beaulac Walt Haneke James Johnson Danielle Kaschmitter Tim Kelley, late Bob McKinley, absent Sherri Robinson Cary Driskell, City Attorney Erik Lamb, Deputy City Attorney Jenny Nickerson, Building Official Connor Lange, Planner Deanna Horton, Administrative Assistant Taylor Dillard, Administrative Assistant Marianne Lemons, Office Assistant There was a consensus from the Planning Commission to excuse Commissioner McKinley from the meeting. IV. AGENDA: Commissioner Kaschmitter moved to approve the September 10, 2020 agenda as presented. There was no discussion. The vote on the motion was five in favor, zero against and the motion passed. V. MINUTES: Commissioner Kaschmitter moved to approve the August 27, 2020 minutes as presented. There was no discussion. The vote on the motion was five 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 mentioned an email sent out to Commission members from Administrative Assistant Deanna Horton regarding staff being willing to work with Commissioners one-on-one to answer any questions regarding agenda items. VIII. PUBLIC COMMENT: There was no public comment. IX. COMMISSION BUSINESS: a. Findings of Fact: STV-2020-0001, A Proposed Street Vacation Of A Portion Of Desmet Court Between Indiana And Flora. 1 09-10-2020 Planning Commission Minutes Page 2 of 4 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. Planner Connor Lange reminded the Planning Commission the findings support the decision to recommend approval to the City Council based on their deliberations after the public hearing that was held on August 27, 2020 for STV-2020-0001, a privately initiated street vacation for a portion of Desmet Court between Indiana Avenue and Flora Road. Commissioner Robinson moved to approve the Findings of Fact for STV-2020-0001. There was no discussion. The vote on the motion was three in favor, zero against and the motion passed. Commissioner Kaschmitter abstained from the vote since she was not attendance at the public hearing. Commissioner Haneke rejoined the meeting. b. Study Session: CTA-2019-0005, A Proposed Amendment to Spokane Valley Municipal Code (SVMC) Title 20 and Title 17, Subdivisions Planner Connor Lange gave a presentation outlining the proposed changes to SVMC Title 20 and Title 17. He explained that the SVMC Title 20 regulates the subdivision of land and provides the framework and procedures for processing preliminary and final subdivisions (both long and short plats), subdivision alterations, binding site plans and vacations of plats. The proposed code text amendment is to ensure that the SVMC Title 20 is consistent with RCW 58.17 so that all procedures and language is consistent with state law. The proposed changes in Title 20 require changes to the Permit Type and Land Use Application table in Chapter 17.80.030 in order to make the codes consistent. Mr. Lange outlined the proposed changes to the municipal code: • Chapter 20.20 General Provisions: Proposed changes will ensure consistency with state law by adding clarification and correct references to "Title 20 SVMC". • Chapter 20.30 Preliminary Short Subdivision, Subdivisions, and Binding Site Plans: Proposed changes include reducing the number of required copies, removing other unnecessary requirements and align the code with state law and other areas of the SVMC. • Chapter 20.40 Final Short Subdivision, Subdivision and Binding Site Plans: Proposed changes include reducing the number of required copies, removing other unnecessary requirements, and updating language in 20.40.020 regarding City Manager final plat authorization and reviewing requirements and 20.40.050 regarding subdivision phasing. • Chapter 20.50 Preliminary Plat, Short Plat, and Binding Site Plan Alterations: Proposed changes include renaming the chapter "Subdivision Alterations" and adding language to 20.50.010 regarding application submittal requirements, adding updates to 20.50.020 outlining procedures for preliminary plat alterations and adding updates to 20.50.030 outlining procedures for final plat alterations. • Chapter 20.60 Final Plat, Short Plat, and Binding Site Plan Alterations: Proposed changes include renaming the chapter "Short Subdivision and Binding Site Plan Alterations", adding language to 20.50.005 regarding purpose, adding language to 20.60.010 regarding application requirements, and adding updates to 20.60.020 regarding procedures for short plat and binding site plan alterations. 2 09-10-2020 Planning Commission Minutes Page 3 of 4 • Chapter 20.70 Subdivision, Short Subdivision, and Binding Site Plan Vacation: Proposed changes include language updates to 20.70.020 regarding the subdivision vacation process and language updates to 20.70.030 regarding the short subdivision and binding site plan vacation process. • Chapter 17.80 Permit Processing Procedures: Permit Type and Land Use Application table updated to reflect new definitions in Chapter 20 regarding Type II and Type III land uses and updates to cross references. Commissioner Kelley joined the meeting at 6:28 p.m. Commissioner Haneke asked about changes to 20.40.020 regarding approval of final plats. He asked why it is being changed from City Council approval to City Manager approval. City Attorney Cary Driskell answered that the language is being corrected so that it reflects the protocol that is currently in place for all final plats. They are all currently approved by the City Manager (not City Council). Mr. Lange also gave a follow-up discussion regarding the City's use of performance surety. He explained that the use of performance surety is outlined in the Spokane Valley Street Standards 9.14 and an applicant must meet the criteria outlined in the standards. Commissioner Haneke asked about using a performance surety for paving of a project because paving is generally affected by weather. Deputy City Attorney Erik Lamb explained that under the City's street standards regarding proper function and operation of the transportation system, paving would be required prior to allowing a performance surety to be used. However, final determination would be granted by the engineering department if a performance surety could be used for paving in the event of adverse weather. Commissioner Johnson asked for further clarification on this matter from engineering at the next meeting. Commissioner Beaulac asked for clarification about the process when a development is abandoned and someone else decides to continue the development. He wanted to know if the project has to start the whole process over or if it can be picked up where it was left off by the previous developer. Mr. Lange answered that approval would have to be received from the original developer allowing the new person to move forward with the project. Deputy City Attorney Lamb stated that it would also depend on where the project is in the process. With no other questions, Mr. Lange said that a public hearing will be held on September 24, 2020 and he would provide answers to those questions posed by the Commission. X. GOOD OF THE ORDER: Commissioner Beaulac commended Commissioner Johnson on his handling of the chairman position. At the August 27, 2020 meeting Commissioner Kelley raised several issues regarding the way he felt about Commissioner Johnson's involvement in a previous council meeting. Commissioner Kelley wanted to bring to light additional concerns when Commissioner Johnson stated the Commission meeting was not the appropriate place to raise his concerns, and offered to meet him at a more appropriate forum. As Commissioner Kelley continued, Commissioner Kaschmitter requested the conversation to stop. Commissioner Kelley stated he had not heard a motion. Commissioner Kaschmitter moved to end the conversation. The vote on the motion was five in favor, one opposed, and the motion passed. XI. ADJOURNMENT: Commissioner Beaulac moved to adjourn the meeting at 7:10 p.m. There was no discussion. The vote on the motion was six in favor, zero against, and the motion passed. 3 09-10-2020 Planning Commission Minutes Page 4 of 4 James Johnson, Chair Date signed Deanna Horton, Secretary 4 COMMUNITY AND PUBLIC WORKS Siionlane001\e, Valley BUILDING & PLANNING STAFF REPORT AND RECOMMENDATION TO THE PLANNING COMMISSION FILE: STV-2020-0001 STAFF REPORT DATE: August 18, 2020 FILE NO: STV-2020-0001 PROPOSAL DESCRIPTION: Request to vacate the east 210-feet of Desmet Court and subsequently dedicate public right-of-way in the form of a cul-de-sac to the west providing the same level of service. STAFF PLANNER: Connor Lange, Planner, Community & Public Works APPLICANT: Todd Whipple, Whipple Consulting Engineers, 21 S Pines Rd, Spokane Valley, WA 99206 PROPERTY OWNER: Hanson Industries Inc., 15807 E Indiana Ave, Spokane Valley, WA, 99216 PROPOSAL LOCATION: The portion of right-of-way proposed to be vacated is located between Indiana Avenue (west) and Flora Road (east) and adjacent to three parcels (45131.0507, 45131.0509 and 45131.0510) further located in the SE quarter of the NE quarter of Section 13, Township 25 North, Range 44 East, Willamette Meridian, Spokane Valley, Washington. BACKGROUND: The City received an application on May 28, 2020 from Hanson Industries, the owner of the adjacent properties, requesting a street vacation of 210-feet of Desmet Court. The total area to be vacated for Desmet Court is approximately 12,847 square feet. The right-of-way width is 50-feet and increases to 95-feet wide at a cul-de-sac. Upon vacation, right-of-way immediately west along Desmet to terminate in a cul-de-sac will be dedicated to the City. The property owner is making a request for the following reasons: 1. The proposed vacation will reduce the length of Desmet Court by 210-feet and dedicate a new cul-de-sac to serve the public use. 2. The vacation of Desmet Court will not impact circulation of City streets, there is no right-of- way available for a future connection to Flora Road to the east. 3. The vacation will allow maximum use of abutting properties because parcels 45131.0507, 45131.0509 and 45131.0510, owned by Hanson Industries, account for the all of the abutting properties of ownership along Desmet Court. The right-of-way for Desmet Court was dedicated as part of the recording for Binding Site Plan (BSP) 02-09 on September 10th, 2009. The BSP dedicated 48-feet of right-of-way and a cul-de-sac with a 50.50-foot radius. In addition to the right-of-way, a 16-foot border easement and 10-foot utility Staff Report and Recommendation STV-2020-0001 Page 1 of 11 August 18, 2020 easement was required along the entire street frontage of Desmet Court. Along the north side of the cul- de-sac (Lot 7 of the BSP) a 20-foot wide sewer easement was required by Spokane County Division of Utilities and a 16-foot wide border and utility easement was also required. The modification of the easements in order to relocate the cul-de-sac will require a Final BSP Alteration as a condition of street vacation approval. The site contains both city facilities (pavement) and utility improvements (cable, internet, sewer, gas and power). Comcast, Century Link, Avista Utilities, Spokane County Environmental Services and Consolidated Irrigation District #19 all have provided comments demonstrating the existence of their facilities within the right-of-way or easements. These facilities will all need to be relocated to the new cul-de-sac location at the time of dedication. A new border easement and utility easement will be required as part of the BSP alteration and re -dedication of the cul-de-sac for Desmet Court. The vacation of the Desmet Court cul-de-sac will not leave any lots without street frontage or access that don't currently have access to Desmet Court. Therefore, no access easements are required to serve any properties. APPROVAL CRITERIA: 1. SVMC — Title 20 (Subdivision Regulations) 2. SVMC — Title 21 (Environmental Controls) 3. SVMC — Title 22 (Street Vacations) 4. City of Spokane Valley Street Standards ATTACHMENTS: Exhibit 1: Vicinity Map Exhibit 2: Aerial Map Exhibit 3: Application Material Exhibit 4: Notice of Public Hearing Exhibit 5: Agency Comments Exhibit 6: Email from Applicant regarding Noticing I. PROPERTY INFORMATION Size and Characteristics of proposed vacation: The area to be vacated includes asphalt paving, adjacent landscaping with street trees and sidewalk. The proposed vacation accounts for 12,847 square feet of public right-of- way. Adjacent Comprehensive Plan Designation: Mixed Use (MU) Adjacent Zoning: Mixed Use (MU) Adjacent Land Use(s): Parcel 45131.0507, 45131.0509 & 45131.0510 are all owned by Hanson Industries and are currently vacant. The owner has submitted for an apartment complex on the four properties. Staff Report and Recommendation STV-2020-0001 August 18, 2020 Page 2 of 11 II. STAFF ANALYSIS OF STREET VACATION PROPOSAL A. COMPLIANCE WITH SPOKANE VALLEY MUNICIPAL CODE (SVMC) TITLE 22.140.030 Findings: 1. Whether a change of use or vacation of the street or alley will better serve the public? The area proposed to be vacated is currently serving three vacant parcels owned by Hanson Industries. The dedication of the cul-de-sac further west is being required as a condition of the vacation in order to provide the same level of service to the public. The street vacation requires the relocation of the border easement and utility easements in order to serve the public interest. The vacated property will allow for maximum use of the property. 2. Whether the street or alley is no longer required for public use or public access? The existing cul-de-sac will no longer be required for public access with the new design and dedication of the new cul-de-sac further west. The new cul-de-sac, border easement and utility easement will provide the same level of service as is currently provided. 3. Whether the substitution of a new and different public way would be more useful to the public? The new cul-de-sac will serve the public better because it allows Hanson Industries to maximize the use of their property in an area where urban services are in place. 4. Whether conditions may so change in the future as to provide a greater use or need than presently exists? There is no additional right-of-way east of Desmet Court that would allow for a future connection to Flora Road. Therefore, the dedication of the cul-de-sac will provide an equal level of service to the public. Spokane Valley Public Works has expressed support of the street vacation. 5. Whether objections to the proposed vacation are made by owners of private property (exclusive of petitioners) abutting the street or alley or other governmental agencies or members of the general public? No objections or public comment has been received. The utility providers all provided comments supporting the street vacation of Desmet Court if all their utilities are moved (at the owner/developers expense) to their acceptance and approval. Conclusions: The findings confirm criteria set forth in SVMC 22.140.030 have been met. B. COMPLIANCE WITH SVMC TITLE 21 —ENVIRONMENTAL CONTROLS The Planning Division has reviewed the proposed project and has determined that the project is categorically exempt pursuant to WAC 197-11-800(2)(i) and SVMC 21.20.040 from environmental review under the provisions of the State Environmental Policy Act (SEPA). III. PUBLIC COMMENTS Staff Report and Recommendation STV-2020-0001 Page 3 of 11 August 18, 2020 Findings: No public comments have been received following the notice of public hearing issued, mailed and posted on August 12, 2020. A Notice of Public Hearing sign was posted on the property August 12, 2020 at the Desmet Court cul-de-sac and public hearing notices were mailed to all owners immediately adjacent to the properties fronting on the portion of Desmet Court to be vacated. Notices were posted in the Spokane Valley Public Library, City of Spokane Valley main reception area and CenterPlace Event Center on August 12, 2020. Lastly, the notice was published in the Spokane Valley Herald on August 7, 2020 and August 14, 2020. Conclusion(s): SVMC 22.140.020(F) requires noticing 20 days prior to the Public Hearing for street vacation applications. However, the City provided 15 days' notice for posting signage onsite, at City locations, and in mailings. The City provided 20 days' notice through the published notice in the newspaper. The City has contacted the Application/Owner about the discrepancy and the Applicant stated a desire to proceed with the public hearing as provided since the Owner owns all abutting property to the portion of Desmet being vacated. See Exhibit 6 for the Applicant response. IV. AGENCY COMMENTS Notice was provided to agencies and service providers on August 5, 2020. Comments were received from the following agencies and are attached as exhibits to this staff report. Where necessary, comments have been incorporated into the recommended conditions of approval in Section V. Agency Received Comments Comments Dated City of Spokane Valley Public Works Yes 8-6-20 Spokane Valley Fire District No.1 Yes 5-14-20 (w/ application) Spokane County Environmental Services Yes 5-28-20 (w/ application) Spokane Regional Health District No Avista Utilities Yes 8-11-20 Spokane Transit Authority No City of Spokane Valley Police Department No Century Link Yes 8-7-20 Comcast Yes 8-6-20 Consolidated Irrigation District #19 Yes 5-26-20 (w/ application) WA Archaeology and Historic Preservation No WA Department of Transportation No Staff Report and Recommendation STV-2020-0001 August 18, 2020 Page 4of11 Findings: Notice of application was routed to jurisdictional agencies, utilities, and public districts for review and comment. All of the utility agencies commented stating they have facilities in either the existing right- of-way and/or the existing utility easements. The facilities will need to be relocated (at the owners expense) outside of the vacated area and into the easements and right-of-way for the new dedicated cul-de-sac. No agencies have stated opposition to the street vacation so long as their utilities are relocated. No other substantive agency comments have been received to date. Conclusion(s): Staff concludes that jurisdictional agencies, utilities, and or public districts have no concerns regarding the proposed street vacation for Desmet Court so long as conditions are met. V. OVERALL CONCLUSIONS AND FINDINGS Staff concludes that STV-2020-0001 as proposed is generally consistent, or will be made consistent, through the recommended conditions of approval based on the approval criteria stated herein. RECOMMENDATION: Approve the request to vacate the east 210-feet of Desmet Court and subsequently dedicate public right-of-way in the form of a cul-de-sac to the west on parcel 45131.0510 subject to the following: 1. Initial work to satisfy conditions of the street vacation (File No. STV-2020-0001), including all conditions below shall be submitted to the City for review within 90 days following the effective date of approval by the City Council. 2. The vacated property shall be transferred into the abutting parcels (45131.0507, 45131.0509 and 45131.0510) as shown on the record of survey created and recorded with Spokane County Auditor's Office pursuant to condition 10. 3. The following easements shall be established. Submit recording number on record of survey and written documentation of easement for City verification. a. An easement acceptable to Spokane County Environmental Services for access to public sewer 30-feet in width centered on the existing pipe. 4. Applicant shall submit a Final BSP Alteration application concurrently with the record of survey for the street vacation for review. The street vacation record of survey cannot be recorded until the Final BSP Alteration has been approved and is ready to record. The final map shall include the following relocated easements/dedications: a. A 16-foot border easement adjacent to newly dedicated right-of-way. b. A 10-foot utility easement running parallel to the border easement around the cul-de-sac. c. The dedication of right-of-way for a cul-de-sac with a 52.50-foot radius in compliance with the Spokane Valley Standard Plan R-130. 5. All the existing utilities located in the right-of-way, border easement and utility easements shall Staff Report and Recommendation STV-2020-0001 Page 5 of 11 August 18, 2020 be relocated at the expense of the owner/developer prior to recording the street vacation. Verification from all of the utility purveyors must be received prior to recording the street vacation that their utilities have been relocated in an acceptable manner. 6. Following the City Council's passage of the Ordinance approving the street vacation, a record of survey of the area to be vacated, prepared by a registered surveyor in the State of Washington, including an exact metes and bounds legal description, and specifying any and all applicable easements for construction, repair and maintenance of existing and future utilities and services, shall be submitted by the proponent to the City Manager, or designee, for review. 7. The surveyor shall locate a monument at the intersection of the centerline of the vacated right- of-way with each street or right-of-way in accordance with the standards established by the SVSS. 8. All direct and indirect costs of title transfer of the vacated street from public to private ownership, including but not limited to, title company charges, copying fees, and recording fees shall be paid by the proponent. The City shall not and does not assume any financial responsibility for any direct or indirect costs for the transfer of title. 9. The zoning district designation of the properties adjoining the street to be vacated shall be automatically extended to the center of such vacation, and all area included in the vacation shall then and henceforth be subject to all regulations of the districts. The adopting Ordinance shall specify this zoning district extension inclusive of the applicable zoning district designations. 10. The record of survey and certified copy of the Ordinance shall be recorded by the City Clerk in the office of the Spokane County Auditor. 11. All conditions of City Council authorization shall be fully satisfied prior to any transfer of title by the City. Staff Report and Recommendation STV-2020-0001 Page 6 of 11 August 18, 2020 EXHIBIT 1 Staff Report and Recommendation STV-2020-0001 Page 7 of 11 August 18, 2020 0 190 380 Feet I E Boone Ave Esri, HERE, Garmin, (c) O.�nStreetMap contributors, and the GIS user community EXHIBIT 2 Staff Report and Recommendation STV-2020-0001 Page 8 of 11 August 18, 2020 8/19/2020, 3:28:57 PM rJ • City of Spokane Valley Streets Valley Parcels Site Address Point D •.r. nat•:�t, 131.P51:1 City of Spokane Valley a,LI z it i eintaw 1:1,128 0 0.0125 0.025 0 0.02 0.04 Flaa 0.05 mi r I 0.018 k Source: Esri, Maxar, GeoEye, Earthstar Geographics, CN ES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community CSV Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community CSV l Spokane Image Consortium, Maxar l Esri, HERE, Garmin, iPC l EXHIBIT 3 Staff Report and Recommendation STV-2020-0001 Page 9 of 11 August 18, 2020 crr STREET VACATION APPLICATION e SVMC 22.140 ♦AIA— 10210 E Sprague Avenue • Spokane Valley WA 99206 Project #il1/-2t1ZD - Ong5 9) 720-5240 ♦ Fax: (509) 720-5075 • peruntcenterr�vukanelalley.o� RECEIVED STAFF USE ONLY MAY 2 8 2020 Date Submitted: PLUS #: c ug EV.#-Fiterfl+ Fee: PART I — REQUIRED MATERIAL `*THE APPLICATION WILL NOT BE ACCEPTED IF THE REQUIRED MATERIALS ARE NOT PROVIDED`" NT Completed Application Form O Application Fee Notice of Application Packet (17.80.110) - Adjacent Property(ies) • Written Narrative -- A written narrative describing the reasons for the proposed street vacation, the physical limits of the proposed street vacation and the public benefit of the proposed street vacation. [Written Correspondence from Utility Purveyors ✓Telephone ✓Cable Electric _ Other (Specify )_ .4Water District /Fire District /Gas Utility ZSewer Utility (A Vicinity Map — Submit a map showing the general area of the proposed vacation Li Record of Survey, if available, for the subject street and/or alley proposed for vacation, and abutting properties, streets and alleys within 100 feet on all sides of the proposed vacation. rk Written Evidence of all easements, allowances or reservations, if available, pertaining to the street and/or alley proposed for vacation. PART II APPLICATION INFORMATION APPLICANT NAME: Whipple Consulting Engineers MAILING ADDRESS: 21 S. Pines Rd. CITY: Spokane Valley PHONE: (509)893-2617 FAx: (509)926-0227 STATE: WA CELL: ZIP: 99206 EMAIL:TODDWWWHIPPLE.COM PROPERTY OWNER No. 1: HANSON INDUSTRIES MAILING ADDRESS: 15807 E INDIANA AVE Cirv: SPOKANE I -STATE: WA ZIP: 99216 PL-15 V1.0 Page 1 of ve an a STREET VACATION APPLICATION PHONE: FAX: CELL: EMAIL: PROPERTY OWNER No. 2: MAILING ADDRESS: CITY: SPOKANE STATE: WA ZIP: PHONE: FAX: CELL: EMAIL: If more than two (2) abutting property owners, include information and written authorization on a separate sheet of paper for each, NAME OF STREET/ALLEY TO BE VACATED: A PORTION OF E DESMET CT. AND CUL DE SAC DIMENSIONS OF STREET/ALLEY TO BE VACATED: DESMET CT= 50' wide SQUARE FEET OF STREET/ALLEY TO BE VACATED: -12,847.3 SF ABUTTING TAx PARCEL No(s).: 45131.0624, 45131.0507, 45131.0509 AND 45131.0510 ADDRESSES OF ABUTTING PARCELS: 16609, 17010, 16926 AND 16916, E DESMET CT ZONING DESIGNATION: MU THE FOLLOWING IS CRITERIA EVALUATED BY THE PLANNING COMMISSION IN FORMULATING A RECOMMENDATION TO THE CITY COUNCIL. ON A SEPARATE SHEET OF PAPER THE FOLLOWING QUESTIONS SHALL BE ANSWERED IN A DETAILED MANNER; 1, How DOES A CHANGE OF USE OR VACATION OF THE STREET/ALLEY IMPROVE SERVICE TO THE PUBLIC? 2. IS THE STREET OR ALLEY NO LONGER REQUIRED FOR PUBLIC USE OR PUBLIC ACCESS? EXPLAIN. 3. WOULD SUBSTITUTION OF A NEW AND/OR DIFFERENT PUBLIC RIGHT-OF-WAY BETTER SERVE THE PUBLIC? EXPLAIN. 4. How WILL USE OR NEED FOR THIS RIGHT-OF-WAY BE AFFECTED BY FUTURE CONDITIONS? EXPLAIN. 5. WILL EASEMENTS BE RETAINED FOR ALL UNDERGROUND AND OVERHEAD UTILITIES? THE REQUESTED VACATION IS LOCATED IN THE SERVICE AREA OF WHAT UTILITY COMPANIES. (SPECIFY)? 6. DOES THE RIGHT-OF-WAY INCLUDE STORMWATER DRAINAGE FACILITIES (SPECIFY)? PLEASE NOTE: PER RCW 35.79.040 (TITLE TO VACATED STREET/ALLEY), THE PROPERTY WITHIN A PUBLIC STREET OR ALLEY VACATED BY THE CITY COUNCIL SHALL BELONG TO THE ABUTTING PROPERTY OWNERS, ONE-HALF (1 /2) TO EACH. THEREFORE, PROPERTY OWNER SHALL BE REQUIRED TO SIGN THE STREET VACATION APPLICATION. PL-15 V1.0 Page 2 of STREET VACATION APPLICATION PER RESOLUTION 07-009 OF THE CITY OF SPOKANE VALLEY, THE CITY COUNCIL HAS THE AUTHORITY TO IMPOSE CHARGES FOR STREET/ALLEY VACATION PURSUANT TO RCW 36.79.030 PART III - AUTHORIZATION (Signature of owner or authorized representative) I, SUSAN M MOSS , (print name) swear or affirm that the above responses are made truthfully and to the best of my knowledge. ,J/(• (Signature) STATE OF WASHINGTON) ss: COUNTY OF SPOKANE SUBSCRIBED AND SWORN to before me this NOTARY SEAL I�l►lllllllllr/,, `,```'I �1ORADE '��,," �' •• �� - r o4146 U aAkts - • A 4,r..ti,1o0o • : = Residing at: • ctiz. . x . a� :. .• •! V w . • to s01. ., r.9,... 4rE OFIWA��`NN` NOTARY 13t1/\ NOTIGNATURE Notary Public in and for the State of Washington /zc, (Date) ci)°k-a 0-Q Cou-phi My appointmentexpires: ro/rz/zcia o 1 LEGAL OWNER NO. 1 AUTHORIZATION: AA V1,0 h, -'3'j„ A n p+ie t . j If the a pli ant is no the gal ow er(s), the owner must�pr ide the following acknowledgement; „..„ 1 kw �° nrer Of the above described property do hereby authorize WHIPPLE CON regarding this application. LTING ENGINEERS to represent me and my interests in all matters PL-15 V1,0 Page 3 of LOT 11 BSD 0209 LOT 6 DESMET CO UR T 44.09' o N89'49'33'W R27.5' ad N, BS D LOT 7 7• 133.69' .�`• • 47.66 R52.5' AREA OF NEW DEDICATION LOT 10 02 09 AREA OF PROPOSED VACATION W LOT 9 N S E PROJ #: 20-2605 DATE: 8/5/20 DRAWN: DAC APPROVED: DAC SCALE: 1 "=50' ROADWAY DEDICATION EXHIBIT DESMET COURT WITHIN BINDING SITE PLAN 02-09 SPOKANE VALLEY, WASHINGTON ZWC E WHIPPLE CONSULTING ENGINEERS CIVIL AND TRANSPORTATION ENGINEERING 12528 NORTH SULLIVAN ROAD SPOKANE VALLEY, WASHINGTON 99216 PH: 509-893-2617 FAX: 509-926-0227 Johanna Herzog Subject: FW: 2266 Desmet Ct. Street Vacation From: Susan Moss Sent: Wednesday, May 13, 2020 5:31 PM To: Johanna Herzog <jherzog@whipplece.com> Subject: FW: 2266 Desmet Ct. Street Vacation rer,,a JS Susan Moss, ASIA .. rick{: aT . _,t;, 9.J-2'S1 Whipple Consu'Ung Enginooro M1 From: Kevin Wells <KWellsi verawaterand::^ower.com> Sent: Wednesday, May 13, 2020 5:23 PM To: Susan Moss < oss .:. whi:::lece.com> Subject: RE: 2266 Desmet Ct. Susan, Project # 310117/ RECEIVED MAY 2 8 2020 COSV PERMIT CENTER SUB # REV # J 1 I don't have access to all of the old easement and annexation documents while working at home. My guess is that if this area is within the original boundary, it is covered by our 1908.blanket easement. It is either just inside or just outside of that boundary and I have no way of knowing without the old documentation. We don't have any current facilities within the road, but we have a joint annexation with Consolidated in the area and they may have facilities serving property within their or our districts. To provide further information will require significant investigation that is impossible to complete under these circumstances. I will be happy to do the research as soon as we re -open the office. Kevin Sent from M 3 F for Windows 10 From: Susan Moss Sent: Monday, May 11, 2020 11:21 AM To: Kevin WEI1, Subject: FW: 2266 Desmet Ct. Hi Kevin, To all Utilities, Reference a Street Vacation at the end of E Desmet Ct. past 16609 E Desmet, Spokane Valley. Attached are pdfs showing the vicinity map and an exhibit of a proposed street vacation we are proposing for a project located at the end of Desmet Ct. in Spokane Valley. Can you please provide correspondence regarding this vacation on if your business has an issue with the vacation or not and what the issues may be. Can you also send any easement documents, if there is an easement within 100' of the vacations. This correspondence will be submittal to the City of Spokane with our street vacation packet. Please contact me if you have any questions, Thank you for your help. 4'4 sor;ir "4.3c,,.•3!3r1 L•�Cr.[n.rr•,r:�rr.t3.gd (•;.3 r9.ro-A'a.u. ti•;.V-a•.;•ct.:ria-rC 2 Johanna Herzog From: Byus, Dave <Dave.Byus@avistacorp.com> Sent: Thursday, May 14, 2020 1:52 PM To: Johanna Herzog Subject: RE: [External] 2266 Desmet Ct. street vacation - Following Up T hanks Johanna. We will review it and k, back to you, I think I have looked at these apartment plans before. From: Johanna Herzog [mailto:jherzog@whipplece.com] Sent: Thursday, May 14, 2020 1:37 PM To: Byus, Dave <Dave.Byus@avistacorp.com> Cc: Susan Moss <smoss@whipplece.com>; Allyson Andrade <aandrade@whipplece.com> Subject: RE: [External] 2266 Desmet Ct. street vacation - Following Up Hi :D a v,ti , Thanks for the i nwe attacin_ri most recent Site Plan for the Quarry Apartments, which} <hre panned tor north of Desmet Court have also attached ci.;r tentative Street Vacation Application w:th a vicnity r-nr,l. Please let me know if there is anything eke ' can send your way that would help. Thant, vou, Hanna Herzog From: Byus, Dave [ Sent: Thursday, May 14, 2020 10:37 AM To: Johanna Herzog < >; Susan Moss < > Subject: FW: [External] 2266 Desmet Ct. street vacation - Following Up Las as I review all street vacations and any land planning actions in this part of Avista's territory. I de Have an issue with the street vacation with the limited information that was supplied, We would normally receive a full application with full details from the City. In this case all i have is a vicinity map and proposed area of vacation. We have full electrical and gas services installed all the way around Desmet Ct and the proposed area to be vacated, There is no future site plan or indication as to how this service will be rerouted tc serve the future parcels I would need to coordinate with John Luse on a plan to cut and reroute the services based on the future plans. Also, will new utility easements be needed for the new rerouted service? Our current utilities are under easements dedicated in a previous Binding Site Plan. Please elaborate and provide information regarding the future for the surrounding parcels and what the plan will be to relocated the existing utilities. r�anxx Dmva8yun Rea� Estate Representative � _-.n boba con"Mr-ft From: Luse, John Sent: Thursday, May 14,2O2O1O.2S4M To: Byus,Dave <�t3i7.nIp » Subject: FVV:[Externa|]2266UesmetCt. street vacation ' Following Up JphnLuee Customer Proj,,1Coordinator From: Johanna Herzog (`^`r n-tw*h\pplece.cunn Sent Thuraday, May 14,lOI09:584K4 To: nirk yye|{'if@kentur`�__rr Luse, John <]ohn.Luse Qaavistacorp. corn:; conso|idatcdirdcaUon(!'corncast net; to 1) ,aneva|teyhre.con; CKoudson@spokuoecounTvorR; Br/an Richardson4comcast , Cc: AUysonAndrade «aand/adr@vvhipp|ece >; Susan Moss < ooCa)vvhipp|ece.cn > Subject: [Exte,na|]3266DesmetCt.street vacation - Following Vp 2 To all Utilities, am following up on a request sent by Susan Moss last Friday in regards to correspondence on the Desmet Ct. Street Vacation. If you could please send comments or easement documents regarding this Street Vacation sometime today, that would be greatly appreciated. Reference a Street Vacation at the end of E Desmet Ct. past 16609 E Desmet, Spokane Valley. Attached are pdfs showing the vicinity map and an exhibit of a proposed street vacation we are proposing for a project located at the end of Desmet Ct. in Spokane Valley. Can you please provide correspondence regarding this vacation on if your business has an issue with the vacation or not and what the issues may be. Can you also send any easement documents, if there is an easement within 100' of the vacations. This correspondence will be submittal to the City of Spokane with our street vacation packet. Please contact me if you have any questions. Thank you for your help. Hanna rte.1og Civil Engineering intern Phone: 509.893.2617 l Fax: 509.926.0227 WCE Whipple Consulting Engineers S;:ueie.fJf !lc Tr;,?r, Et.r.f cerrn9, i 1.3r;r1:7.9 :t, tiJ L, WMypMrti,tool MUD WA 99201 USE CAUTION - EXTERNAL SENDER Do not click on links or open attachments that are not familiar. For questions or concerns, please e-mail s hlshingLavi CONFIDENTIALITY NOTICE he contents of this email nessanti and any atlachrnen:s are intender solely for the addressee(s) and may :ontain conffdentraI and/or privile eir InforTnl3'.IQr, and may be legally pro aciei1 from disclosure If yc)„, are n:.l he otended recipient of this message Or ar aaert �t the intended recipient, er it rats rnessa,e has been arddre. __ed h:: you .n error. pleasee mrnediate y aer1 the senner by reply emsem5ii and then dE fele message and any atnchr11eras 3 Johanna Herzog From: Welch, Mark <Mark.Welch@CenturyLink,corn> Sent: Wednesday, May 27, 2020 11:20 AM To: Johanna Herzog Subject: RE: RE: 2266 Desmet Ct. street vacation - Following Up Here you go.. Mark Welch Engineer II 904 N, Columbus St., Spokane, WA, 99202 tel: 509.835.4604 cell: 509.703.2705 CenturyLink• From: Johanna Herzog <jherzog@whipplece.com> Sent: Wednesday, May 27, 2020 11:14 AM To: Welch, Mark <Mark.Welch@CenturyLink.com> Subject: FW: RE: 2266 Desmet Ct. street vacation - Following Up From: Johanna Herzog Sent: Friday, May 22, 2020 3:52 PM To: Cc: Susan Moss < >; Allyson Andrade < Subject: RE: 2266 Desmet Ct. street vacation - Following Up Hello Mr. Welch, I am following up on a request sent by Susan Moss last Friday in regards to correspondence on the Desmet Ct. Street Vacation. Susan mentioned that she has heard back from you regarding this project, however you did not provide the written response we need to complete our application. If you could please send comments or easement documents regarding this Street Vacation sometime today, that would be greatly appreciated. Reference a Street Vacation at the end of E Desmet Ct. past 16609 E Desmet, Spokane Valley. Attached are pdfs showing the vicinity map and an exhibit of a proposed street vacation we are proposing for a project located at the end of Desmet Ct. in Spokane Valley. Can you please provide correspondence regarding this vacation on if your business has an issue with the vacation or not and what the issues may be. Can you also send any easement documents, if there is an easement within 100' of the vacations. This correspondence will be submittal to the City of Spokane with our street vacation packet. Please contact me if you have any questions. If you need more information to complete the comments, please let me know. Thank you for your help. Hanna Herzog Civil Engineering Intern Phone: 509.893.2617 I Fax: 509.926.0227 2 IWC E Whipple Consulting Engineers • .L a-, « ry• : L,^.��(1 {:?^t'C.' ?rr>C.7," v!'.^Vm: rs SN4,cc..t,' ;z:10 Tr;rrrr,; C:: enetrcrr`, t. c'f1 r),.rrrinrrfl «:. PCf ! ei r:ri4 C:.j'?;.•+.Ch t,�r funk .2 '54 RD,?d • 6'A03 2,ra Va...trif 4':A ram wh'vrot<E .earl This communication is the property of CenturyLink and may contain confidential or privileged information. Unauthorized use of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender by reply e-mail and destroy all copies of the communication and any attachments. 3 Johanna Herzog From: Sent: To: Cc: Subject: consolidatedirrigation@comcast.net Tuesday, May 26, 2020 9:42 AM Johanna Herzog Susan Moss; Allyson Andrade RE: 2266 Desmet Ct. street vacation - Following Up D1 511 LARGE POND AR A EX STING FIOME SERVED BY VERA (RV BY CID O D. BASI VERA 5 5. AREA 14" LINi: ACROSS 0510 RF,WAY) 1509 1 IAlISOIIDATEO IRRIGATION DISTRICT ie IRRIGATION DISTRICT 19 Phone: 1.509 924 1855 The District has an easement on the 12" main running north and south just west of the Large Pond Area and a 16" watermain on the north side running east and west along the pond area which I don't think affect the Street Vacation. The District has a 12" main on Desmet Court within the existing ROW. Thanks, From: Johanna Herzog <jherzog@whipplece.com> Sent: Friday, May 22, 2020 3:56 PM To: consolidatedirrigation@comcast.net Cc: Susan Moss <smoss@whipplece.com>; Allyson Andrade <aandrade@whipplece.com> Subject: RE: 2266 Desmet Ct. street vacation - Following Up Hello Mr. Sheppard, 1 I am following up on a request sent by Susan Moss last Friday in regards to correspondence on the Desmet Ct. Street Vacation. If you could please send comments or easement documents regarding this Street Vacation sometime today, that would be greatly appreciated. Reference a Street Vacation at the end of E Desmet Ct. past 16609 E Desmet, Spokane Valley. Attached are pdfs showing the vicinity map and an exhibit of a proposed street vacation we are proposing for a project located at the end of Desmet Ct. in Spokane Valley. Can you please provide correspondence regarding this vacation on if your business has an issue with the vacation or not and what the issues may be. Can you also send any easement documents, if there is an easement within 100' of the vacations. This correspondence will be submittal to the City of Spokane with our street vacation packet. Please contact me if you have any questions. If you need more information to complete the comments, please Met me know. Thank you for your help. Hanna Herzog Civil Engineering Intern Phone: 509.893.2617 I Fax: S09.926.0227 WCE Whipple Consulting Engineer; 0,•o 're{': t.. 1(1 f/cve:7orrilt:,'1r C,"aryl ,3aff1•«: ).r� G,rthl. ,i:X2 r,a rr 6.r;r;. x ertPlf'. l.:)l1,:f ff1;r rep,r1 J : o; w;P 3 a,1t1sCRat• ,1! V/411: tcorE•, 2 Johanna Herzog From: Depner, Colin <CDEPNER@spokanecounty.org> Sent: Thursday, May 28, 2020 1:51 PM To: Johanna Herzog Cc: Susan Moss Subject: RE: 2266 Desmet Ct, Street Vacation Attachments: Desmet Ct pub swr.pdf Hi Hanna - Please see attached. Environmental Services will require an easement for all the public sewer pipes within the vacation. Because of the depth of the existing public sewer, the minimum easement width will be 30', and all easements should be centered on the pipe. Regarding the attached pdf, the stub connected to the north MH invert is private, but all other pipes connected to that MH are public. Easements should extend 10' beyond the ends of the pipes. Also, I don't think the City of Spokane Valley has officially requested comments from Environmental Services yet on this project. Typically we comment directly to the planners or permit techs within a planning jurisdiction, so it's important that the City of Spokane Valley still routes this project through the regular communication channels if they haven't yet. We're quite busy and backed up in our office, so it's possible they've already routed it but we just haven't issued our official comments yet. Anyhow contact me again if you need additional information. Colin Depner Spokane County Environmental Services 1026 W. Broadway Ave. 4th Floor Spokane, WA 99260 509-477-7282 Video Inspection Requests Electronic Plan Submittal From: Johanna Herzog [mailto:jherzog@whipplece.com] Sent: Thursday, May 28, 2020 10:51 AM To: Depner, Colin <CDEPNER@spokanecounty.org> Cc: Susan Moss <smoss@whipplece.com> Subject: FW: 2266 Desmet Ct. Street Vacation Hello Mr. Depner, Whipple is working on a Street Vacation at the end of E Desmet Ct. past 16609 E Desmet, Spokane Valley. Attached are pdfs showing the vicinity map and an exhibit of a proposed street vacation we are proposing for a project located at the end of Desmet Ct. in Spokane Valley. Can you please provide correspondence regarding this vacation on if the county has an issue with the vacation or not and what the issues may be. Can you also send any easement documents, if there is any sewer easement within 100' of the vacations. This correspondence will be in a submittal to the City of Spokane Valley with our street vacation packet. Please contact me if you have any questions. If you need more information to complete the comments, please let me know. Thank you for your help. Hanna Herzog Civil Engineering Intern Phone: 509.893.2617 I Fax: 509.926.0227 IWC E v51�14pplo ` �r ;ult ,� .n.gineor. . WCE p:u:rdc; _.:nnr t7cr..Ja+.kvr in 717 1c/50.1 a .7 .1i a5 !.,0,,,e}"n.). Cr.I. 5t U.C. Wat .1.71G rla.% 6.!(J✓ 4-;Cr ins i. "1n:! rktrr!ni, JJ:k; t arUr'r^Cht+c'. 2 Johanna Herzog From: Harvey, Traci <HarveyT@SpokaneValleyFire.com> Sent: Thursday, May 14, 2020 11:28 AM To: Johanna Herzog Subject: RE: 2266 Desmet Ct. street vacation - Following Up We have not concerns or easements. All specific fire department requirements shall be conditioned on future commercial permits. Traci Harvey Fire Protection Engineer Spokane Valley Fire Department 2120 N. Wilbur Spokane Valley. \VA 99206 509-892-4183 Work 509-892-4144 Fax From: Andersen, Patricia On Behalf Of Inspections Sent: Thursday, May 14, 2020 10:25 AM To: Harvey, Traci <HarveyT@SpokaneValleyFire.com> Subject: FW: 2266 Desmet Ct. street vacation - Following Up From: Johanna Herzog [ i ;�_r, pTh _ Sent: Thursday, May 14, 2020 9:58 AM To: mark.vvelcn@centuryiink core; J-,' Ls6etc avistacorp,cc+ ; Consolidated Irrigation District 1119 < ;'isolidatedirrig'ation[tcomcast,ntt>; Inspections <Inspectk,iw1 Jp3,,d,,evt >; Hudson a@spokanecounty.org,; Bryan Richardson@comcast.com 1 Cc: Allyson Andrade < >; Susan Moss < Subject: 2266 Desmet Ct. street vacation - Following Up To all Utilities, > am following up on a request sent by Susan Moss last Friday in regards to correspondence on the Desmet Ct. Street Vacation. If you could please send comments or easement documents regarding this Street Vacation sometime today, that would be greatly appreciated. Reference a Street Vacation at the end of E Desmet Ct. past 16609 E Desmet, Spokane Valley. Attached are pdfs showing the vicinity map and an exhibit of a proposed street vacation we are proposing for a project located at the end of Desmet Ct. in Spokane Valley. Can you please provide correspondence regarding this vacation on if your business has an issue with the vacation or not and what the issues may be. Can you also send any easement documents, if there is an easement within 100' of the vacations. This correspondence will be submittal to the City of Spokane with our street vacation packet. Please contact me if you have any questions. Thank you for your help. Hanna Herzog Civil Engineering Intern r_ i L Phone: 509.893.2617 ! . Fax: 509.926.0227 'IWCE Whipple Consulting Engineers 71 �o.r:'s Penis Rt.:i • Spokanrvn"rt, Yid O'2706 Whip[•*C C.c oat, CUD 2 May 11, 2020 W.O No. 2018-2266 City of Spokane Valley 10210 E. Sprague Ave. Spokane Valley, WA 99206 t',C E ',Nhi nie Li:insulting Engineers, Inc. RE: Desmet Court Street Vacation Narrative Project • / RECEIVED MAY 2 8 2020 COSY PERMIT CENTER SUB #=:j R E V. #E:=1 To Whom it May Concern; This letter will serve as the narrative for the Street Vacation of E. Desmet Court approximately 220 feet in length. Our discussion of the vacation can be seen below in bold. The street vacation of E Desmet Ct is 12,847.4 sf, see the roadway vacation exhibit for more details. The vacation is due to the design of the remaining undeveloped lots and how best to develop said lots. These lots will be aggregated for a future multi- family project. This new design would require less Right of Way access all lots moving the cul de sac and all affected utilities by the street vacation will be relocated to fit the design. 1. How does a change of use or vacation of the street/alley improve service to the public? This street vacation will shorten Desmet Ct. by approximately 220 feet with a new cul de sac for the public following all city requirements. The lots will use this additional land which was vacated to its full potential. 2. Is the street or alley no longer required for public use or public access? Explain. The subject street vacation is no longer required for public use due to new design of the adjacent lots. The public will still have use of a new cul de sac. 3. Would substitution of a new and/or different public right-of-way better serve the public? Explain. See previous answers. 4. How will use or need for this right-of-way be affected by future conditions? Explain. The vacated right of way will be used in the development for a better layout of the lots being developed. All utilities which are within the street vacation may be 21 South Pines Rd • Spokane Valley, WA 99206 PO Box 1 566 • Veradale, WA 99037 Phone 509-893-2617 • Fax 509-926-0227 • WhippleCE.com • Into@WhippleCE.com Civil, Structural, Traffic, Survey, Landscape Architecture and Entitlements relocated if there is any conflict with the new cul de sac. Those easements which may extend into the vacated street will be updated per city requirements. 5. Will easements be retained for all underground and overhead utilities? The requested vacation is located in the service area of what utility companies. (specify)? There may be some easements which can remain, but most easements will need to be relocated due to their placement around the existing cul de sac. 6, Does the right-of-way include stormwater drainage facilities (specify)? The vacated right of way does have stormwater drainage facilities which will be need to be revised for the new cul de sac and onsite changes. Should you have any further questions regarding the project or this narrative. please call our office at (509)893-2617. Sincerely, Susan M. Moss, A.S.L.A. Whipple Consulting Engineers 432 10713O HIS INDENTURE, Made this seventh -day of June EASEMENT . A.A. 19,04 between Orla Bacon an unmarried man party .of the first part and John A. Week, party of the see- 'ond part, WITNESSETH, WtERE,AS, the said party of the second part is the 'owner of lot two (2) of section ten (10) in Filed Oct. 14, 19O4. .tovmehip twenty-five (25)-north, of range forty-four ® 9:58 A.4 M.', (44) East of the Willamette Meridian,,adjoining the epbkane River, -and is desirous bf bonbtructing a dam Req. John A. Week. _ or dams serene the said Spokane river, on the said lot two (2) b3'..suoh eime er sizes or diMenaions, and Z. Stewart. Co. Auditor. at such point upon said lot two (2), oe the eaid R. W. Butler, Deputy. party.of the second pert','iis heirs and assigns, Shall detirtnine. Recorded 0ot. 26;,.1904, That the eaid,party of the first part, for and By R. C. Peterson, Deputy. in oonaiderat],on of the eum of Three hundred dollars ($300,00/100) to him in hand paid, by the bald party of Mail Req. 1914 let Avenue. the second part, the receipt whereof is hereby sok- noiledged, does hereby grant', bafTain, sell and convey ,itt$; $r$$$r$$$6$$$$$.;.,:' unto the ediii party of'the- second part, hid'heirs and assigne'forever, et appurtenant to lot two (2)-of section ten (1O)'in township twenty-five,(2 ),north'of range forty-four (44) East of the Willamette Meridian., above Mentioned and described, the right end privilege .to flow and cover -with, water by.means of such dam ek dams, as hereinbefore mentioned and deeoribea, so far as'it may be heoeasery irishah use of said'dan or dams, as -to the eaid,party_.of the eeoond part „his heirs and assign,, ehall'seem expedient, the following described lands and premises to-wit't " t,ot two (2) of Beo'lon`tbirtseii. 113) in township twenty five (25) north of range forty four (44) :Eabt' Of the Willamette ,meridian and the right.and privilege of'frae-and-uninterrupted aocese tO and from the banks of said Spokane River,.ae the river now nuns, ink through, over and'aor0ee.the lands and premioee, above described, and'the'right and privilege of -using said banks, as shall be considered neoedsary-•by-said party of -the seoond pant, his heirs and asa- igns, to the'full etf'joyment.of all the-riglate agd_.privileges hereby granted. TO'• RAVIR'ANb To HOLD THE-SAMZ,.togetheF with'ail the'hereditaments'and appur- teniLncee thereunto 'beioxrging, or in anywise appertaining,, to the said.party of the eeoond pert, hie heirs and aeeigns forever. And the:eaid Orla Bacon,,party of the first part, for his heirs, exeout ors And edminiletratore, doe, covenant with the aaid party of the second part, his heirs and assgns, thrtt he is Well seized in fee of the rights end privileges, .aforesai id, and has godd,right to de11.and convey the 'same in manner 'and form aforesaid; and that the same are free. from all encum- brances. And the above bargained and granted rights and privileges in the Wet and peaceable possession of the Said party of the second dart; his heirs and 'assigns, 'against all pernone'lawfully claiming, or to Clain; the whole or any,part thereof, the said party of the first part will warrant and defend: And that eaoh.and every of."the covenants herein set forth shall run with the lands and premises herein described. ' IN TESTYMONY WHEREOF, the said party of the first part'has hereunto set his hand and seal the day and year first above written.' ., ' Signed, sealed and,delivered Orla Bacon. (SEAL) Orla Bacon. to John A. Week. in the presence of: Reese H. Voorheee. E.:-R. Week. STATE OP WASHINGTONO County of Spokane..) SB-- I, Fred.C. Pugh, a Notary Public in and for said county and state'do hereby Certify that on this 7th day of June A.D. 1904, personally ,appeared bef,dre me Orla Bacon tome known to be the individual described in and who executed the with- in inetrument, and acknowledged that he'signed end sealed -the same as his free and voluntary.aot and deed, for the uses and purposes therein mentioned.' WITNESS my hand and oi'fieial seal the day and year in this certificate first above written. esaoaouwaeaoeeasiaifpwp Pred C. .- Fred C. Pugh. drortaY PUBldd, "Suit, er lrashdsgl s . ae Onin.miArioss Smarm 6 s g. '.fl..beepeeaeeeeseeeee0eee fig. q. $$$$$4440$ P$$$$$$$$#V0'' $$$$ $$0 0$000000iY 91W97 $$$## P$0YSVT VP$001 Notary Publie, residing at Spokane, Wash. RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: DREW M. BODKER, P.S. ATTORNEY AT LAW 2607 S. SOUTHEAST BLVD. SUITE A201 SPOKANE, WASHINGTON 99223 6391422 R000rdino Foe a.ea Page l 5 INSURANCE COMPANY Rs0000nt Foe Eaq� EaaM•nt F��T�FMERiCP�'1 spoksns County {1ashlnoton Sid' 111111111111111111111111 Document Storm Water Drainage Easement Grantor: Grantee: Abbreviated Legal: Tax Parcel Nos. Hanson Industries, Inc., a Washington corporation Pacific Cataract and Laser Institute, Inc., P.C., a Washington professional corporation Providence Health & Services - Washington, a Washington non- profit corporation, dba Providence Health Care Pacific Cataract and Laser Institute, Inc., P.C., a Washington professional corporation Lots 6, 10, 11, 12, 13, 14, 15 and 16, Hanson Center East Addition, BSP-02-09 (fully described on attached Exhibit "A") 45131.0506; .0510; .0511 .0512; .0513; .0514.,.0515 .0516 & .0521 STORM WATER DRAINAGE EASEMENT RECITALS: WHEREAS, Hanson Industries, Inc., a Washington corporation, ("Hanson"), is the owner of Lots 6, 10 and Tract A of Hanson Center East Addition, as legally described in Exhibit "A" attached hereto ("Hanson Property"), and Pacific Cataract and Laser Institute, Inc., P.C., a Washington professional corporation ("Pacific"), is the owner of Lot 1 I of Hanson Center East Addition, as legally described in Exhibit "A" attached hereto ("Pacific Property"), which Pacific has acquired from Hanson, and SEWER EASEMENT -1 R. E. Excise Tax Exempt Date Ll .att 2015 Spokane County Maas By e. L 6391422 Page 2 of 5 04/24/2015 11:37:48 AM WHEREAS, Hanson has previously sold Lots 12, 13, 14, 15 and 16 of Hanson Center East to Providence Health & Services - Washington, a Washington non-profit corporation dba Providence Health Care ("Providence"), which real property is also described on Exhibit "A" attached hereto ("Providence Property"), and WHEREAS, Providence has previously constructed a storm water drainage pipeline that lies partially within the Hanson Property and the Pacific Property, and said pipeline transports storm water drainage from the Providence Property to a storm water drainage facility located in Tract A, and the parties desire to create an easement for that portion of the storm water drainage pipeline that travels across the Hanson Property and the Pacific Property, and to further grant an easement which will give all parties the right to drain the storm water from their respective properties into the drainage facility on Tract A, NOW, THEREFORE, in consideration of the premises and the mutual benefits to be derived by the parties hereto, no monetary consideration, the parties agree as follows: 1. Hanson hereby grants and conveys to Providence and Pacific, and Pacific likewise grants and conveys to Providence, for the benefit of the Providence Property and the Pacific Property, a ten (10') foot wide storm water drainage pipeline easement (the "Easement") on, over and under that portion of the Manson Property and the Pacific Property upon which the storm water pipeline has been constructed, being five (5') feet on either side of the center Iine of said pipeline. Hanson further grants to Providence and to Pacific an easement to drain the storm water from the Providence and Pacific properties into the drainage easement area on Tract A that is shown on the Final Plat of Hanson Center East Addition Binding Site Plan BSP-02-09. 2. The Easements granted herein are for installing, constructing, operating, maintaining, protecting, repairing and replacing said storm water drainage pipeline, with all connections and appurtenances thereto and for storm water drainage into the drainage easement on Tract A. Manson and Pacific shall have the right to tap into and use said storm water drainage pipeline to transport storm water from the Hanson Property and the Pacific Property to Tract A, and they shall retain the right to use and occupy the portions of their respective properties which are subject to this Easement, but they shall not construct any permanent building structures on the Easement, nor otherwise hinder or interfere with the storm water drainage pipeline. 3. Providence and Pacific shall indemnify, defend, and hold Hanson harmless from any Toss, claim, or other liability of any nature, including attorney's fees and costs, that may result from their use of that part of the Easement the lies in the Hanson Property, and Providence shall do likewise for Pacific for that portion of the Easement that lies on the Pacific Property. Pacific and. Providence agree to restore the Easement area to substantially its natural state following any future reconstruction, installation or repair of the storm water drainage pipeline facilities. SEWER EASEMENT -2 6391422 Page 3 of 5 04/24/2015 11:37:48 AM 4. Ali of the promises, covenants, terms and conditions of this Easement shall survive any conveyance of the properties owned by the parties hereto, and this Easement shall extend to and bind the successors, heirs and assigns of the parties hereto. This Easement shall be a perpetual and appurtenant easement that shall run with the lands described on Exhibit "A". IN WITNESS WHEREOF, the undersigned have caused this instrument to be executed on this A4e day of 400 / , 2015. Providence Health & Services — Washington, a Washington non-profit corporation dba Providence Health Care By ik, By_ �D V ic•At. we. r Robert J. Boyl Its: President (name) Its: R.E 1 c SEWER EASEMENT -3 Hanson Industries, Inc., a Washington corporation Pacific Cataract and Laser Institute, Inc., P.C., a Washington professional corporation By Debbie Eldredge Its: Executive VP/COO 6391422 Page 4 of 5 04/24/2015 11:37:48 AM STATE OF WASHINGTON ss, County of Spokane On this / day of 1 2015, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Robert J. Boyle to me known to be the President of Hanson Industries, Inc., the corporation that executed the foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. Witness my hand and official seal hereto affixed the day . ear first above written. DritEWMtoDCEa I. State o1 Washington ENotary--- °4-- RING IN COMMISSION EX,P:s,ES 5-17.2418 STATE OF WASHINGTON ) ss. County of Le•sAA S ) Notary Pu . is in and for the State of Washington., residing at Spokane My Appointment Expires: rw[7'fQ On this 451 day of er i 1 , 2015, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Debbie Eldredge to me known to be the Executive VP/COO of Pacific Cataract and Laser Institute, Inc., P.C., the corporation that executed the foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. Witness my hand and official seal hereto affixed the day and year first above written. ��v g,,E ttr. /� 424...r o a _'R- DARCEA R. � GSA q �� ;'� %-..'�ss,b..:y'::, Notary Public in and for the State of o F. 4.•`�M A Washington, residingat Wi n l o * ; N0TARr ;-c-,.. ,: ,n,• �• p��L!C :• * My Appointment Expires: 06144.? 019 4t. : ;.- ..i, .• (•`': , SEWER EASEMENT -4 6391422 Page 5 of 5 04/24/2015 11:37.48 AM EXHIBIT "A" Providence Property Lots 12, 13, 14, 15 and 16, Hanson Center East Addition Binding Site Plan BSP-02-09, according to the plat thereof recorded in Volume 3 of Binding Site Plans, Pages 20, 21 and 22, records of Spokane County, Washington. Situate in the City of Spokane Valley, County of Spokane, State of Washington. Hanson Property Lots 6, 10, and Tract A, Hanson Center East Addition Binding Site Plan BSP-02-09, according to the plat thereof recorded in Volume 3 of Binding Site Plans, Pages 20, 21 and 22, records of Spokane County, Washington. EXCEPT a portion of said Lot 10, more particularly described as follows; BEGINNING at the Southeasterly ante point of said Lot 10, said point also being on a non - tangent curve concave to the Northeast and having a radius of 2750.44 feet and a chord bearing and distance of N85°41'52°W, 13.51 feet; thence Northwesterly along said curve through a central angle of 00°18'53` an arc distance of 13.51 feet; thence NOO°00'00°E a distance of 23.92 feet thence N89°42`25'E a distance of 13.38 feet; thence SOD°12'33"E a dunce of 25.00 feet to the POINT OF BEGINNING. Situate in the City of Spokane Valley, County of Spokane, State of Washington. Pacific Property Ali of Lot 11 Of the Final Plat of Hanson Center East Addition Binding Site Plan BSP-02- 09, Recorded In Book 3 of Binding Site plans, Pages 20 thru 22, located in the Northeast Quarter of Section 13, Township 25 North, Range 44 East, W.M., City of Spokane Valley, Spokane County, Washington.. EXCEPT a portion of Hid Lot 11, more particularly described as follows; BEGINNING at the Southeast corner of said Lot 11, said point also being on a non -tangent curve concave to the Northeast and having a radius of 2750.44 feel and a chord bearing and distance of N83`38'19"W, 184.13 feet thence Northwesterly along said curve through e central angle of 03°50'l 1. an arc distance of 184.16 feet; thence NOD°O0'00'E a distance of 2.58 feet; thence N89°42'25'E a distance of 183.00 feet to a point on the Easterly Line of said Lot 11; thence S00°00'00"E a distance of 23.92 feet to the POINT OF BEGINNING. SEWER EASEMENT -5 6661/S0/80 EP6FT0066 2 2O8'1 Filed for Record at Request of and copy returned to: LUKINS & ANN1S. P.S. 1600 Washington Trust Financial Center 717 W Sprague Ave. Spokane, WA 99201-0466 Attention: JAMES S. BLACK Project #,9V 7_JO2�-A/o,J RECEIVED MAY 2 82020 C©SV PERMIT CENTER SUB # L1 REV. # 11119J1,1111111 111 4g398851 088105 0999 �04:46P S t 06 Simian to. itt STATUTORY WARRANTY DEED -ate- Abbreviated Legal Description: Pin. Of Tract 133, Vera and ptn of S V2 of NE 'A of 13-25-44 Parcel Nos.: 45 E31.0214, 45131.9029, and 45131.0210 The GRANTOR, J. JAMAW L.P., a Washington limited partnership who took title as J. JAMAW PARTNERSHIP, a Washington general partnership, in consideration of the terms of an I.R.C. 1031 exchange transaction and other valuable consideration, in hand paid, conveys and warrants to HANSON INDUSTRIES, INC., a Washington corporation, as GRANTEE, all of Grantor's 48.4% undivided interest in the real estate situate in the County of Spokane, state of Washington, which is legally described on the attached Exhibit "A". SUBJECT TO second half 1999 real estate taxes and aquifer assessment, liens not yet payable. SUBJECT TO Agreement between Vera Electric Water Company and D.K. McDonald, et at, as recorded April 25, 1908, at Recording No. 2000528. SUBJECT TO assessments or charges levied by Vera Irrigation District No. 15. SUBJECT TO relinquishment of easements for access, light, view and air, and for ingress, egress and regress to, from .and between the land and the highway or highways to be constructed on land conveyed by deed to the State of Washington, recorded on May 13, 1974, at Recording No. 7405130136. MAIMS I.ISS.DOC. 014M 1 tO 1 II N mi 1 111 Cfl1O511�5 O4 46P TRINSNA11011, TfTtF 11A C0 W0 S 1 00 Soakane Co. $A SUBJECT TO reservations, of mineral rights, etc., contained in Quit Claim Deed recorded on December 29, 1989, at Recording No. 8912290297. DATED the day of , 1999. J. JAMAW L.P., a Washington limited partnership By: ALVIN J. WOLFF, JR., Managing General Partner STATE OF WASHINGTON ) :ss. County of Spokane ) On this tt day of , 1999, before me personally appeared ALVIN J. WOLFF, IR., to me known t be the Managing General Partner of J. JAMAW L.P., the partnership that executed the foil -going instrument, and acknowledged the said instrument to be the free and voluntary act of sal,partnership, for the uses and purposes herein mentioned, and on oath stated that he was au,.torized to execute the said instrument on behalf of said partnership. GIVEN UNDER MY HAND AND OFFICIAL SEAL the day and year in this certificate first above written. MHA028 }-19®- 7A0099 )1te_gexii TDO hni (Print Name) NOTARY PUBLIC, for the §tate of Washington, residing at L It a_ttoclej My appointment expires 3 - ! - 600 2 I PARCEL 1: 11111111111 485 Pa398; 3of14 D8r31.11999 44.46P Sti.uu Sadoe Co, WA Tract 133 of VERA, as per plat thereof recorded in Volume "0" of Plats, page 30; EXCEPT the North 150 feet of the East 580 feet; EXCEPT any portion. conveyed for highway purposes; AND EXCEPT any portion of railroad right of way lying within said Tract 133; Situate in the County of Spokane, State of Washington. PARCEL 2: All those portions of the following described Tracts "A" and "B" lying Northerly and Westerly of the following described line: BEGINNING at a point opposite Highway Engineers Station (H.E.S.) 440+00 on the centerline survey of SR 90 (PSH 2), Spokane: to Greenacres, and 100 feet Northeasterly therefrom; thence Southeasterly parallel with said centerline to a point opposite H.E.S. 447+00; thence Northeasterly to a point opposite HB 447+00 and 115 feet Northeasterly therefrom; thence Southeasterly parallel with said centerline to intersect the East line of Tract "A" produced South; thence Northerly along the East line of Tract "A" and its Southerly production to the Northeast corner of said Tract "A" and the end of this line description; TRACT "A": That portion of the South half of the Northeast Quarter of Section 13, Township 25 North, Range 44 E.W.M., described as follows: BEGINNING at a point in the North line of the County Road, 20 feet North and 3668.78 feet East of the West Quarter corner of said Section; thence North 0°21' East 1310.47 feet to the North line of said South half of the Northeast Quarter; thence East 952.2 feet; thence South 0°23' West 621.75 feet, more o7: less, to a point 52 feet North of the North line of irrigation canal right of way; thence West parallel with said canal right of wa,► 848.2 feet; thence South 1°05' West 690.9 feet, more or les, to the North line of County Road; thence West, along said'County Road 104.29 feet, more or less, to the point of beginning; (� I �I TA4NSNMTThN, TTTI F TNS C0 wii FiIBIT ' A" (con't) TRACT "B": �I III4398851 08/05/ 999 o04 46P 100 Snakana Ca. IA A strip of land 52 feet wide, lying along and parallel to the North line of the Spokane Valley Irrigation Company right of way, running from the West line of Blocks 132 and 133 of VERA, as per plat thereof recorded in Volume "O" of Plats, page 30, and extending West 848.2 feet; Situate in the County of Spokane, State of Washington PARCEL 3: That portion of Abandoned former Great Northern Railway right of way 50 feet in width within the Southeast Quarter of the Northeast Quarter in Section 13, Township 25 North, Range 44 E.W.M., extending in a Southwesterly direction form a line drawn parallel with and 100 feet West from the center line of Flora Road and to the North right of way line of P.S.H. No.'2; Situate in the County of Spokane, State of Washington 8E3 E66T/! O/80 266XT0066 BT"E8!4ZT$ Filed for Record at Request of and copy returned to: LUKINS & ANNIS, P.S. 1600 Washington Trust Financial Center 717 W Sprague Ave. Spokane, WA 99201-0466 Attention: JAMES S. BLACK 1111141111,11111 MY i u Si, nn 4398852 Page: 1of5 0$10511999 04:46P SnO ro Ca, Itt STATUTORY WARRANTY DEED t� Abbreviated Legal Description: Ptn. Of Tract 133, Vera and ptn of S ''A of NE '/, of 13.25-44 Parcel Nos.: 45131.0214, 45131.9029, and 45131.0210 The GRANTORS, HAROLD L. INMAN and JEFF A. MORRIS, Co -Trustees of the FLOWSON TRUST, in consideration of the terns of an I.R.C. 1031 exchange transaction and other valuable consideration, in hand paid, conveys and warrants to HANSON INDUSTRIES, INC., a Washington corporation, as GRANTEE, all of Grantor's 51.6 % undivided interest in the real estate situate in the County of Spokane, state of Washington, which is legally described on the attached Exhibit "A". SUBJECT TO second half 1999 real estate taxes and aquifer assessment, liens not yet payable. SUBJECT TO Agreement between Vera Electric Water Company and D.K. McDonald, et al., as recorded April 25, 1908, at Recording No. 2000528. SUBJECT TO assessments e„ charges levied by Vera Irrigation Distract No. I5. SUBJECT TO relinquishment of easements for access, light, view and air, and for ingress, egress and regress to, from and between the land and the highway or highways to be constructed on land conveyed by deed to the State of Washington, recorded on May 13, 1974, at Recording No. 7405130136. ANA02E1-1a8 DOC- e/el99 1 111 IIIIII 11111 I 11111 1 11 I I 1111 Ew'0fa.,=« TRMNSNATTON. TTTMF NS CD Min S12 00 Spokane Co. U SUBJECT TO reservations, of mineral rights, etc., contained in Quit Claim Deed recorded on December 29, 1989, at Recording No. 8912290297. DATED the I day of STATE OF WASHINGTON County of Spokane : ss. ) 1999. FLOWSON TRUST On this tom_ day of T 9,9�-�9before me personally appeared HAROLD L. INMAN, as Co-Tru of . ,land acknowledged that he signed the same as Co -Trustee of the Flowson Trust, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument on behalf of said Trust. GIVEN UNDER MY HAND AND OFFICIAL SEAL the day and year in this certificate first above written. 14—"GL— 116tithcV (Signature) 0Yin. (e. Naito -Kai (Print Nance) NOTARY PUBLIC, for the State of Washington, residing at '(f My appointment expires -.,fig —)49 p 2 >, BAME 1J59. 7A41,99 STATE OF WASHINGTON 11 II Hill IIIII } ss FILIAN1TTMI 1 11111 DDLS ri Stt County of Spokane ) On this +tit day of Jam' , 1999, before me personally appeared JEFF A. MORRIS, as Co-Tnistee of J. TAMAW L.F., and acknowledged that he signed the same as Co -Trustee of the Flowson Trust, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument on behalf of said Trust. GIVEN UNDER MY HAND AND OFFICIAL SEAL the day and yea in this certificate first above written. MBAO1EI-JSR DOC. $449 1111111 4398852 OB10501999 °04 46P S17. ilfl Snnkbne r,n W4 DEt 9 J. 1...O4AIJy (Print Name) NOTARY PUBLIC, for the State of Washington, residing at roST FAu..451 lbfiht, My appointment expires 4/1/63 3 IIINIIMIII10I5 EXHIBIT nAii PARCEL 1: 11 11111 4398852 0674511999 �44.46P sty.m snetim cn. ru Tract 133 of VERA, as per plat thereof recorded in Volume "O" of Plats, page 30; EXCEPT the North 150 feet of the East 580 feet; EXCEPT any portion conveyed for highway purposes; AND EXCEPT any portion of railroad right of way lying within said Tract 133; Situate in the County of Spokane, State of Washington. PARCEL 2: All those portions of the following described Tracts "A" and "B " lying Northerly and Westerly of the following described line: BEGINNING at a point opposite Highway Engineers Station (H.E.S.) 440+00 on the centerline survey of SR 90 (PSH 2), Spokane to Greenacres, and 100 feet Northeasterly therefrom; thence Southeasterly parallel with said centerline to a point opposite H.E.S. 447+00; thence Northeasterly to a point opposite HB 447+00 and 115 feet Northeasterly therefrom; thence Southeasterly parallel with said centerline to intersect the East line of Tract "A" produced South; thence Northerly along the East line of Tract "A" and its Southerly production to the Northeast corner of said Tract "A" and the end of this line •iescription; TRACT "A": That portion of the South half of the Northeast Quarter of Section 13, Township 25 North, Range 44 E.W.M., described as follows: BEGINNING at a point in the North line of the County Road, 20 feet North and 3668.78 feet East of the West Quarter corner of said Section; thence North 0°21' East 1310.47 feet to the North :line of said South half of the Northeast Quarter; thence East 952.2 feet; thence South 0°23' West 621.75 feet, more or less, to a point 52 feet North of the [North line of irrigation canal right of way; thence West parallel with said canal right of way 848.2 feet; thence South 1°05' West 690.9 feet, more or less, to the North line of County Road; thence West, along said County Road 104.29 feet, more or less, to the point of beginning; 111111111P4;:: '852 f� 5 of 5f I�� EXHIBITNSATION. TITIF INS 0O Ir0 $12.O0 SoakaneCD. '46P (won't) TRACT "B": A strip of land 52 feet wide, lying along and parallel to the North line of the Spokane Valley Irrigation Company right of way, running from the West line of Blocks 132 and 133 of VERA, as per plat thereof recorded in Volume "0" of Plats, page 30, and extending West 648.2 feet; Situate in the County of Spokane, State of Washington PARCEL 3: That portion of Abandoned former Great Northern Railway right of way 50 feet in width within the Southeast Quarter of the Northeast Quarter in Section 13, Township 25 North, Range '.4 E.W.M., extending in a Southwesterly direction form a line drawn parallel with and 100 feet West from the center line of Flora Road and to the North right of way line of P.S.H. No. 2; Situate in the County of Spokane, State of Washington Order No. Sp 19574 Guarantee No. SGW 08003282 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE LIMITS OF LIABILITY AND THE CONDITIONS AND STIPULATIONS OF THIS GUARANTEE, * * OLD REPUBLIC NATIONAL *`t * TITLE INSURANCE COMPANY * * a Corporation, of Minneapolis, Minnesota * herein cal ed the Company GUARANTEES the Assured named in Schedule A against actual monetary Toss or damage not exceeding the liability stated in Schedule A, which the Assured shall sustain by reason of any incorrectness in the assurances set forth in Schedule A. Issued through the office of: SPOKANE COUNTY TITLE COMPANY NORTHBANK BUILDING, SUITE 100 1010 N. NORMANDIE STREET SPOKANE, WASHINGTON 99201 TELEPHONE: (509) 326-2626 Countersigned: Authorized Officer or Agent OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY A Corporation 400 Second Avenue South, Minneapolis, Minnesota 55401 (612) 371.1111 Hy Mast Piet Certificate - Sub Guarantee / Plant. Information Guarantee / Chain of Title Guarantee Presrdenf Secretary Spokane County Title Company 1010 N. Normandie Street, #203 Spokane, WA 99201 Phone: 509-326-2626 Fax: 509-324-1375 SUBDIVISION GUARANTEE SCHEDULE A Office File Number Policy Number Date of Policy Amount of Insurance Premium SP19574 SGW 08003282 February 15, 2019 $1,000.00 $300.00 Tax Ref. No.: at 8:00 AM $26.40 E DESMET CT Total PROPERTIES $326.40 NAME OF ASSURED: WHIPPLE CONSULTING ENGINEERS INC THE ASSURANCES REFERRED TO ON THE FACE PAGE ARE: THAT, ACCORDING TO THOSE PUBLIC RECORDS WHICH, CONSTRUCTIVE NOTICE OF MATTERS RELATIVE TO THE DESCRIPTION OF WHICH IS FULLY SET FORTH IN UNDER THE RECORDING LAWS, IMPART FOLLOWING DESCRIBED REAL PROPERTY: SEE ATTACHED EXHIBIT "A" TITLE TO SAID REAL PROPERTY IS VESTED IN: HANSON INDUSTRIES, INC., A WASHINGTON CORPORATION SUBJECT TO THE MATTERS SHOWN BELOW UNDER EXCEPTIONS, WHICH EXCEPTIONS ARE NOT NECESSARILY SHOWN IN THE ORDER OF THEIR PRIORITY. EXCEPTIONS: 1. GENERAL TAXES AND ASSESSMENTS, IF ANY, NO SEARCH HAVING BEEN MADE THEREOF; ALSO, TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. 2. UNPATENTED MINING CLAIMS, RESERVATIONS OR EXCEPTIONS IN THE UNITED STATES PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; WATER RIGHTS, CLAIMS OR TITLE TO WATER, 3. TITLE TO ANY PROPERTY BEYOND THE LINES OF THE REAL PROPERTY EXPRESSLY DESCRIBED HEREIN, OR TITLE TO STREETS, ROADS, AVENUES, LANES, WAYS OR WATERWAYS ON WHICH SUCH REAL PROPERTY ABUTS, OR THE RIGHT TO MAINTAIN THEREIN VAULTS, TUNNELS, RAMPS, OR ANY OTHER STRUCTURE OR IMPROVEMENT; OR ANY RIGHTS OR EASEMENTS THEREIN UNLESS SUCH PROPERTY, RIGHTS OR EASEMENTS ARE EXPRESSLY AND SPECIFICALLY SET FORTH IN SAID DESCRIPTION. Subdivision Guarantee Policy Number: SGW 08003282 ADDITIONAL EXCEPTIONS: 4. GENERAL REAL ESTATE TAXES (INCLUDING AMOUNTS FOR AQUIFER, STORM WATER, IRRIGATION, DRAINAGE, WATER, AND FLOOD CONTROL, IF ANY), FOR THE YEAR 2019. THE FIRST HALF THEREOF MUST BE PAID ON OR BEFORE April 30, 2019, TO AVOID INTEREST AND PENALTIES; FULL YEAR AMOUNT: $4,633.72 FIRST HALF AMOUNT: $2,316.86 TAX ACCOUNT NO.: 45131.0501 AFFECTS: LOT 1 FULL YEAR AMOUNT: $5,763.89 FIRST HALF AMOUNT: $2,881.94 TAX ACCOUNT NO.: 45131.0502 AFFECTS: LOT 2 FULL YEAR AMOUNT: $7,353.36 FIRST HALF AMOUNT: $3,676.68 TAX ACCOUNT NO.: 45131.0503 AFFECTS: LOT 3 FULL YEAR AMOUNT: $6,434.92 FIRST HALF AMOUNT: $3,217.46 TAX ACCOUNT NO.: 45131.0504 AFFECTS: LOT 4 FULL YEAR AMOUNT: $5,975.75 FIRST HALF AMOUNT: $2,987.87 TAX ACCOUNT NO.: 45131.0505 AFFECTS: LOT 5 FULL YEAR AMOUNT: $5,128.09 FIRST HALF AMOUNT: $2,564.04 TAX ACCOUNT NO.: 45131.0506 AFFECTS: LOT 6 FULL YEAR AMOUNT: $3,125.13 FIRST HALF AMOUNT: $1,562.56 TAX ACCOUNT NO.: 45131.0621 AFFECTS: TRACT A 5. LIABILITY TO ASSESSMENTS, IF ANY, BY THE CITY OF SPOKANE VALLEY. FURTHER INFORMATION CAN BE OBTAINED BY CALLING (509) 921-1000. 6. LIABILITY TO ASSESSMENTS, IF ANY, BY VERA WATER AND POWER. FURTHER INFORMATION CAN BE OBTAINED BY CALLING (509) 924-3800. 7. UNPAID CHARGES AND ASSESSMENTS, IF ANY, LEVIED BY HANSON CENTER EAST PROPERTY OWNERS' ASSOCIATION. 8. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: JOHN A. WEEK PURPOSE: THE RIGHT AND PRIVILEGE TO FLOW AND COVER WITH WATER RECORDED: October 20, 1904 AUDITOR'S FILE NO.: 107138 AREA AFFECTED: LOTS 1 & 2 AND OTHER PROPERTY Subdivision Guarantee Policy Number: SGW 08003282 9. COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS OR RESERVATIONS CONTAINED IN INSTRUMENT, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW; RECORDED: May 09, 2001 AUDITOR'S FILE NO.: 4584983 10. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: BETWEEN: HANSON INDUSTRIES, INC., A WASHINGTON CORPORATION AND SPOKANE COUNTY REGARDING: DEVELOPER REIMBURSEMENT RECORDED: July 17, 2002 AUDITOR'S FILE NO.: 4750178 11. COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS OR RESERVATIONS CONTAINED IN INSTRUMENT, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW; RECORDED: May 04, 2011 AUDITOR'S FILE NO.: 5997418 12. TERMS, COVENANTS AND PROVISIONS OF THAT CERTAIN EASEMENT, AS CREATED BY INSTRUMENT; RECORDED: April 24, 2015 AUDITOR'S FILE NO.: 6391422 IN FAVOR OF: PROVIDENCE HEALTH 8 SERVICES-WASHINGTON, A WASHINGTON NON-PROFIT CORPORATION, DBA PROVIDENCE HEALTH CARE PACIFIC CATARACT AND LASER INSTITUTE, INC., P.C., A WASHINGTON PROFESSIONAL CORPORATION PURPOSE: STORM WATER DRAINAGE AFFECTS: TRACT A AND A PORTION OF LOT 6 AND OTHER PROPERTY 13. CERTIFICATION OF ORDER INCLUDING LANDS IN CONSOLIDATED IRRIGATION DISTRICT NO. 19 WITH APPROVAL OF VERA WATER AND POWER AND THE TERMS AND CONDITIONS THEREOF: REGARDING: AS SHOWN THEREIN RECORDED: July 10, 2015 AUDITOR'S FILE NO.: 6415980 AFFECTS: A PORTION OF LOT 6 AND OTHER PROPERTY 14. CERTIFICATION FOR INTERLOCAL COOPERATION AGREEMENT BETWEEN CONSOLIDATED IRRIGATION DISTRICT NO. 19 AND VERA WATER AND POWER AND THE TERMS AND CONDITIONS THEREOF: REGARDING: AS SHOWN THEREIN RECORDED: July 10, 2015 AUDITOR'S FILE NO.: 6415981 AFFECTS: A PORTION OF LOT 6 AND OTHER PROPERTY Subdivision Guarantee Policy Number: SGW 08003282 15. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: BETWEEN: CONSOLIDATED IRRIGATION DISTRICT NO, 19, A WASHINGTON IRRIGATION DISTRICT AND QUASI -MUNICIPALITY; VERA WATER AND POWER, A WASHINGTON IRRIGATION DISTRICT AND QUASI MUNICIPALITY; AND HANSON INDUSTRIES, INC., A WASHINGTON CORPORATION REGARDING: WATER AND ELECTRICITY SERVICE SUPPLY RECORDED: July 10, 2015 AUDITOR'S FILE NO.: 6415982 AFFECTS: A PORTION OF LOT 6 AND OTHER PROPERTY 16. RESTRICTIONS, EASEMENTS, SETBACKS AND OTHER MATTERS AS MAY BE DELINEATED AND/OR CONTAINED ON THE FACE OF SAID PLAT, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW. 17, RESTRICTIONS, EASEMENTS, SETBACKS AND OTHER MATTERS AS MAY BE DELINEATED AND/OR CONTAINED ON THE FACE OF HANSON CENTER EAST, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW. 18. ORDINANCE AND THE TERMS AND CONDITIONS THEREOF, AS RESERVED BY:. ORDINANCE NO.: 98-0862 APPROVED AND FILED: November 19, 1985 AFFECTS: THIS AND OTHER PROPERTY AMENDMENT THERETO: RECORDED: March 14, 2000 AUDITOR'S FILE NO.: 4463162 19. SATISFACTION OF CONDITIONS AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: RECORDED: November 10, 1998 AUDITOR'S FILE NO.: 4292087 20. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: BETWEEN: SPOKANE COUNTY, A POLITICAL SUBDIVISION; AND HANSON INDUSTRIES, INC. REGARDING: LATECOMER FEES RECORDED: March 14, 2000 AUDITOR'S FILE NO.: 4463161 Subdivision Guarantee Policy Number: SGW 08003282 21. COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS OR RESERVATIONS CONTAINED IN INSTRUMENT, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW; RECORDED: May 01, 2001 AUDITOR'S FILE NO.: 4582480 SAID INSTRUMENT IS A RE-RECORD OF INSTRUMENT RECORDED October 13, 2000 UNDER FILE NO. 4524769. ANNEXATION AND SUPPLEMENTARY DECLARATION; RECORDED: November 03, 2010 AUDITOR'S FILE NO.: 5949961 SAID INSTRUMENT IS A RE-RECORD OF INSTRUMENT RECORDED April 08, 2010 UNDER FILE NO. 5890343. SAID COVENANTS, CONDITIONS AND RESTRICTIONS HAVE BEEN MODIFIED BY INSTRUMENT; RECORDED: December 20, 2010 AUDITOR'S FILE NO.: 5963318 22. EASEMENT, OR QUASI -EASEMENT, DEDICATED IN THE PLAT OF HANSON CENTER EAST FOR THE RIGHT OF THE PUBLIC TO MAKE NECESSARY SLOPES FOR CUTS OR FILLS UPON SAID PREMISES IN THE REASONABLE ORIGINAL GRADING OF STREETS, AVENUES, ALLEYS AND ROADS. 23. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: BETWEEN: HANSON INDUSTRIES, INC., A WASHINGTON CORPORATION; AND HANSON CENTER EAST PROPERTY OWNERS' ASSOCIATION REGARDING: STORMWATER MAINTENANCE RECORDED: November 20, 2009 AUDITOR'S FILE NO.: 5853508 24. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: BETWEEN: HANSON INDUSTRIES, INC.; AND THE CITY OF SPOKANE VALLEY REGARDING: DEVELOPER MITIGATION OF TRAFFIC -RELATED IMPACTS RECORDED: April 08, 2011 AUDITOR'S FILE NO.: 5991757 END OF SCHEDULE A EXCEPTIONS, Subdivision Guarantee Policy Number: SGW 08003282 NOTES: AT THE REQUEST OF THE ASSURED THE FOLLOWING INFORMATION IS PROVIDED: a. THE ADDRESS OF THE SUBJECT PROPERTY IS: 16609 E DESMET 16625 E DESMET 16711 E DESMET 16727 E DESMET 16815 E DESMET 16829 E DESMET VACANT LAND CT SPOKANE VALLEY, WA 99216 CT SPOKANE VALLEY, WA 99216 CT SPOKANE VALLEY, WA 99216 CT SPOKANE VALLEY, WA 99216 CT SPOKANE VALLEY, WA 99216 CT SPOKANE VALLEY, WA 99216 AS TO LOT 1 AS TO LOT 2 AS TO LOT 3 AS TO LOT 4 AS TO LOT 5 AS TO LOT 6 AS TO TRACT A b. ACCORDING TO THE RECORDS OF SPOKANE COUNTY ASSESSOR, THE CURRENT VALUE OF SAID PREMISES IS AS FOLLOWS: TAX ACCOUNT NO.: LAND: IMPROVEMENTS: TOTAL: AFFECTS: TAX ACCOUNT NO.: LAN D: IMPROVEMENTS: TOTAL: AFFECTS: TAX ACCOUNT NO.: LAND: IMPROVEMENTS: TOTAL: AFFECTS. TAX ACCOUNT NO.: LAND: IMPROVEMENTS: TOTAL: AFFECTS: TAX ACCOUNT NO.: LAND: IMPROVEMENTS: TOTAL: AFFECTS: TAX ACCOUNT NO: LAND: IMPROVEMENTS: TOTAL: AFFECTS: TAX ACCOUNT NO.: LAND: IMPROVEMENTS: TOTAL: AFFECTS: 45131.0501 $399,450.00 $0.00 $399,450.00 LOT 1 45131.0502 $497,020.00 $0.00 $497, 020. 00 LOT 2 45131.0503 $634,240.00 $0.00 $634,240.00 LOT 3 45131.0504 $554,950,00 $0.00 $554,950.00 LOT 4 45131.0505 $515,310.00 $0.00 $515,310.00 LOT 5 45131,0506 $442,130.00 $0.00 $442 130.00 LOT 6 45131.0521 $269,200 00 $0.00 $269,200.00 TRACT A Subdivision Guarantee Policy Number: SGW 08003282 c. THE FOLLOWING ABBREVIATED LEGAL DESCRIPTION IS PROVIDED AS A COURTESY TO ENABLE THE DOCUMENT PREPARER TO CONFORM WITH THE REQUIREMENTS OF RCW 65.04.045, PERTAINING TO STANDARDIZATION OF RECORDED DOCUMENTS ABBREVIATED LEGAL DESCRIPTION: LTS 1 - 6 & TRACT A BSP 02-09 THE SUBJECT PREMISES MAY LIE WITHIN A COUNTY SEWERAGE AREA. AN INQUIRY SHOULD BE MADE TO THE SPOKANE COUNTY UTILITIES DEPARTMENT FOR ANY CHARGES THAT MAY BE OWED. FOR MORE INFORMATION CALL (509) 477-3604. e. PLEASE NOTE OUR RECORDING TIMES: MONDAY - THURSDAY: 8:30 A.M., 10:30 A.M., 1:00 P.M. AND 2'30 P.M. FRIDAY: 8:30 A.M., 10:30 A.M. AND 12:00 P.M. E-RECORDING AVAILABLE MONDAY - FRIDAY UNTIL 3:00 P.M. TITLE INFORMATION Title Officer: Virginia Clemens Email: virginia@spokanetitie.com Spokane County Titte 1010 N. Normandie St., #100 Spokane, WA 99201 PH: (509) 326-2626 FX: (509) 327-7570 Subdivision Guarantee Spokane County Title Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Spokane County Title Company We may collect nonpublic personal information about you from the following sources: Information we receive from you such as on applications or other farms. Information about your transactions we secure from our files, or from (our affiliates or) others. Information we receive from a consumer reporting agency. Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates as permitted by law. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. ORT 287-C 5/07/01 Subdivision Guarantee Order No,: SP19574 EXHIBIT "A" LOTS 1, 2, 3, 4, 5, 6 AND TRACT A, HANSON CENTER EAST ADDITION BINDING SITE PLAN BSP-02-09, AS PER PLAT RECORDED IN VOLUME 3 OF BINDING SITE PLANS, PAGES 20, 21 AND 22, RECORDS OF SPOKANE COUNTY; SITUATE IN THE CITY OF SPOKANE VALLEY, COUNTY OF SPOKANE, STATE OF WASHINGTON. Subdivision Guarantee SST ParcellD: 45131.0501 16609 E Desmet Ct Spokane Valley, WA 99216 This map/plat is being furnished as an aid in locating the herein described land in relation to adjoining streets, natural boundaries and other land, and is not a survey of the land depicted. Except to the extent a policy of title insurance is expressly modified by endorsement, If any, the company does not insure dimensions, distances, location of easements, acreage or other matters shown thereon. SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE 1. Except to the extent that specific assurances are provided In Schedule A of this Guarantee, the Company assumes no liability for loss or damage by reason of the following: (a) (b) 1. DEFINITION OF TERMS The folowing terms when used In the Guarantee mean: (a) the 'Assured": the party or parties named as the Assured In this Guarantee, or on a supplemental writing executed by the Company. (b) "land"• the land described or referred to in Schedule (A) or in Part 2, and improvements affixed thereto which by law constitute real property. The term 'land" does not Include any property beyond the lines of the area described or referred to in Schedule (A) or in Part 2, nor any right, title, interest, estate or easement In abutting streets, roads, avenues, alleys, lanes, ways or waterways. (c) "mortgage": mortgage, deed of trust, trust deed, or other security Instrument. (d) "public records": records established under state statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (e) "date": the effective date. 2. NOTICE OF CLAIM TO BE GIVEN BY ASSURED CLAIMANT An Assured shall notify the Company promptly in writing in case knowledge shall come to an Assured hereunder of any claim of tide or interest which is adverse to the title to the estate or interest, as stated herein, and which might cause Toss or damage for which the Company may be liable by virtue of this Guarantee. If prompt notice shall not be given to the Company, then all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any Assured under this Guarantee unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. Defects, liens, encumbrances, adverse claims or other matters against the title, whether or not shown by the public records. (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or, (2) Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not the matters excluded under (1) or (2) are shown by the records of the taxing authority or by the public records. (c) (1) Unpatented mining claims; (2) reservations or exceptions In patents or in Acts authorizing the Issuance thereof; (3) water rights, claims or title to water, whether or not the matters exduded under (1), (2) or (3) are shown by the public records. 2. Notwithstanding any specific assurances whidi are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage by reason of the following: (a) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the land expressly described in the description set forth in Schedule (A), (C) or in Part 2 of this Guarantee, or title to streets, roads, avenues, lanes, ways or waterways to which such land abuts, or the right to maintain therein vaults, tunnels, ramps or any structure or improvements; or any rights or easements therein, unless such property, rights or easements are expressly and specifically set forth in said description. (b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the public records; (1) which are created, suffered, assumed or agreed to by one or more of the Assureds; (2) which result in no loss to the Assured; or (3) which do not result in the Invalidity or potential invalidity of any Judicial or non -judicial proceeding which is within the scope and purpose of the assurances provided. (c) The identity of any party shown or referred to In Schedule A. (d) The validity, legal effect or priority of any matter shown or referred to In this Guarantee. GUARANTEE CONDITIONS AND STIPULATIONS 3. NO DUTY TO DEFEND OR PROSECUTE The Company shall have no duty to defend or prosecute any action or proceeding to which the Assirred is a party, notwithstanding the nature of any allegation in such action or proceeding. 4. COMPANY'S OPTION TO DEFEND OR PROSECUTE ACTIONS; DUTY OF ASSURED CLAIMANT TO COOPERATE Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above: (a) The Company shall have the right, at its sole option and cost, to institute and prosecute any action or proceeding, interpose a defense, as limited In (b), or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the lien rights of the Assured, or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under the terms of this Guarantee, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this Guarantee. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (b) If the Company elects to exerdse Its options as stated In Paragraph 1(a) the Company shall have the right to select counsel of its choice (subject to the right of such Assured to object for reasonable cause) to represent the Assured and shall not be liable for and will not pay the fees of any other counsel, nor will the Company pay any fees, costs or expenses incurred by an Assured in the defense of those causes of action which allege matters not covered by this Guarantee. (c) Whenever the Company shall have brought an acbon or Interposed a defense as permitted by the provisions of this Guarantee, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, In its sole discretion, to appeal from an adverse judgment or order. (d) In all cases where this Guarantee permits the Company to prosecute or provide for the defense of any action or proceeding, an Assured shall secure to the Company the right to so prosecute or provide for the defense of any action or proceeding, and &I appeals therein, and permit the Company to use, at its option, the name of such Assured for this purpose. Whenever requested by the Company, an Assured, at the Company's expense, shall give the Company all reasonable aid in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the lien rights of the Assured. If the Company Is prejudiced by the failure of the Assured to furnish the required cooperation, the Company's obligations to the Assured under the Guarantee shall terminate, 5. PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 2 of these Conditions and Stipulations have been provided to the Company, a proof of foss or damage signed and sworn to by the Assured shall be furnished to the Company within ninety (90) days after the Assured shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the matters covered by this Guarantee which constitute the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the Assured to provide the required proof of Toss or damage, the Company's obligation to such assured under the Guarantee shall terminate. In addition, the Assured may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Guarantee, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Assured shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the Assured provided to the Company pursuant to this Section shall not be disclosed to others unless, In the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Assured to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required In the above paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this Guarantee to the Assured for that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY In case of a claim under this Guarantee, the Company shall have the following additional options, (a) To Pay or Tender Payment of the Amount of Liability or to Purchase the Indebtedness. The Company shall have the option to pay or settle or compromise for or in the name of the Assured any claim which could result in Toss to the Assured within the coverage of this Guarantee, or to pay the full amount of this Guarantee or, If this Guarantee is issued for the benefit of a holder of a mortgage or a llenholder, the Company shall have the option to purchase the indebtedness secured by said mortgage or said lien for the amount owing thereon, together with any costs, reasonable attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up to the time of purchase. Such purchase, payment or tender of payment of the full amount of the Guarantee shall terminate all liability of the Company hereunder. In the event after notice of claim has been given to the Company by the Assured the Company offers to purchase said indebtedness, the owner of such indebtedness shall transfer and assign said indebtedness, together with any collateral security, to the Company upon payment of the purchase price. Upon the exercise by the Company of the option provided for in Paragraph (a) the Company's obligation to the Assured under this Guarantee for the claimed loss or damage, other than to make the payment required In that paragraph, shall terminate, including any obligation to continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4, and the Guarantee shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other Than the Assured or With the Assured Claimant. To pay or otherwise settle with other parties for or in the name of an Assured claimant any claim assured against under this Guarantee, together with any costs, attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of the option provided for In Paragraph (b) the Company's obligation to the Assured under this Guarantee for the claimed loss or damage, other than to make the payment required In that paragraph, shall terminate, Including any obligation to continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4. 7, DETERMINATION AND EXTENT OF LIABILITY Thls Guarantee Is a contract of Indemnity against actual monetary loss or damage sustained or incurred by the Assured claimant who has suffered loss or damage by reason of reliance upon the assurances set forth In this Guarantee and only to the extent herein described, and subject to the Exclusions From Coverage of This Guarantee, The liability of the Company under this Guarantee to the Assured shall not exceed the least of: (a) the amount of liability stated in Schedule A or in Part 2; (b) the amount of the unpaid principal indebtedness secured by the mortgage of an Assured mortgagee, as limited or provided under Section 6 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the Toss or damage assured against by this Guarantee occurs, together with interest thereon; or (c) the difference between the value of the estate or Interest covered hereby as stated herein and the value of the estate or interest subject to any defect, lien or encumbrance assured against by this Guarantee. 8. LIMITATION OF LIABILITY (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures any other matter assured against by this Guarantee in a reasonably diligent manner by any method, including lit:gation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as stated herein. (c) The Company shall not be liable for loss or damage to any Assured for liability voluntarily assumed by the Assured in settling any claim or sue without the prior written consent of the Company. 9. REDUCTION OF LIABILTITY OR TERMINATION OF LIABILITY All payments under this Guarantee, except payments made for costs, attorneys' fees and expenses pursuant to Paragraph 4 shall reduce the amount of liability pro tanto. 10. PAYMENT OF LOSS (a) No payment shall be made without producing this Guarantee for endorsement of the payment unless the Guarantee has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of Toss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within thirty (30) days thereafter. 11. SUBROGATION UPON PAYMENT OR SETTLEMENT Whenever the Company shall have settled and paid a claim under this Guarantee, all right of subrogation shall vest in the Company unaffected by any act of the Assured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the Assured would have had against any person or property in respect to the claim had this Guarantee not been issued. If requested by the Company, the Assured shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The Assured shall permit the Company to sue, compromise or settle in the name of the Assured and to use the name of the Assured in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the Toss of the Assured the Company shall be subrogated to all rights and remedies of the Assured after the Assured shall have recovered its prindpal, interest, and costs of collection. 12. ARBITRATIOiI Unless prohibited by applicable law, either the Company or the Assured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Assured arising out of or relating to this Guarantee, any service of the Company in connection with its issuance or the breath of a Guarantee provision or other obligation. All arbitrable matters when the Amount of Liability Is $2,000,000 or less shall be arbitrated at the option of either the Company or the Assured. All arbitrable matters when the amount of liability is in excess of $2,000,000 shall be arbitrated only when agreed to try both the Company and the Assured. The Rules in effect at Date of Guarantee shall be binding upon the parties. The award may Include attorneys' fees only If the laws of the state In which the land is located permits a court to award attorneys' fees to e prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 13. LIABILITY LIMITED TO THIS GUARANTEE; GUARANTEE ENTIRE CONTRACT (a) This Guarantee together with all endorsements, if any, attached hereto by the Company is the entire Guarantee and contract between the Assured and the Company. In interpreting any provision of this Guarantee, this Guarantee shall be construed as a whole. (b) Any claim of loss or damage, whether or not based an negligence, or any action asserting such claim, shall be restricted to this Guarantee. (c) No amendment of or endorsement to this Guarantee can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 14. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this Guarantee and shall be addressed to the Company at the office which issued this Guarantee or to its Home Office: 400 Second Avenue South, Minneapolis, Minnesota 55401, (612) 371-1111. EXHIBIT 4 Staff Report and Recommendation STV-2020-0001 Page 10 of 11 August 18, 2020 Spakan e' 4000 Val ley Community & Public Works Building & Planning Division NOTICE OF PUBLIC HEARING THE SPOKANE VALLEY COMMUNITY & PUBLIC WORKS IS SENDING THIS NOTICE OF PUBLIC HEARING TO ALL PROPERTY OWNERS WITHIN 400 FEET OF THE SUBJECT PROPERTY BASED ON THE MOST CURRENT RECORDS FROM THE SPOKANE COUNTY ASSESSOR'S OR TREASURER'S OFFICE. Due to the restrictions on public gatherings arising from the COVID-19 outbreak, this hearing will be conducted remotely using web and telephone conference tools, as described below. Hearing Date: Thursday, August 27, 2020 beginning at 6:00 p.m. Meeting Details: Join Zoom meeting by computer, smartphone, or tablet at: A link to the Zoom meeting will be provided on the agenda and posted to the City's webpage: www.spokanevalley.org/planningcommission. Application/Description of Proposal: Request to vacate the east 220-feet of Desmet Court including the cul-de-sac at the end and re -dedicate a new cul-de-sac further to the west. Applicant: Whipple Consulting Engineers, 21 S Pines Road, Spokane Valley WA 99206 Owner: Hanson Industries, 15807 E Indiana Avenue, Spokane WA 99216 Location of Proposal: The portion of right-of-way proposed to be vacated is located between Indiana Avenue (west) and Flora Road (east) and adjacent to three parcels (45131.0507, 45131.0509 and 45131.0510) further located in the SE quarter of the NE quarter of Section 13, Township 25 North, Range 44 East, Willamette Meridian, Spokane Valley, Washington. Approval Criteria: Section 22.140 (Street Vacations) of the City of Spokane Valley Municipal Code (SVMC); Title 21 (Environmental Controls) of the City of Spokane Valley Municipal Code; the City of Spokane Valley Street Standards; the Regional Stormwater Manual; and the Spokane Regional Health District regulations. Hearing Process and Appeals: The Planning Commission will conduct the remote hearing pursuant to the rules of procedure adopted in SVMC Title 18 (Boards and Authorities). The public is encouraged to submit written comments prior to the hearing by sending the comments to Connor Lange, 10210 E Sprague Ave, Spokane Valley, WA 99206, or email to clange@spokanevalley.org. Comments will need to be submitted no later than 4:00 PM on August 27, 2020 in order for them to be received and prepared for submission into the record. Comments received will be entered into the record at the time of the public participation portion of the Public Hearing. If you would like to deliver comments to City Hall you may contact City Hall at (509) 720-5000 prior to 4:00 PM on August 27, 2020 to schedule an appointment for delivery and allow staff to scan and include in the report. Comments received through US Mail will be included if they are received prior to the hearing. All interested persons may testify at the remote public hearing via the zoom meeting address and/or phone number. Interested persons will need to sign up to speak no later than 4:00 p.m. on August 27, 2020 at the link provided in the agenda posted at the link referenced above. Use the link above to sign up for oral public comments. The link will direct you to directions to sign up for oral public comments. This is not an opportunity for questions or discussion. Remarks will be limited to three minutes per person. Written comments and documents may only be submitted prior to the hearing. Any appeal of the Planning Commission's decision will be based on the record established before the Planning Commission, pursuant to SVMC 17.90 (Appeals). The Planning Commission will forward a recommendation on the request to the Spokane Valley City Council. Environmental Determination: The Planning Division has reviewed the proposal/project and has determined that the project is categorically exempt pursuant to WAC 197-11-800 and City of Spokane Valley Municipal Code (SVMC); Title 21 (Environmental Controls) from environmental review under the provisions of the State Environmental Policy Act (SEPA). Staff Report and Inspection of File: A staff report will be available for inspection seven (7) calendar days before the hearing. The staff report and application file may be inspected by logging on to the Spokane Valley SmartGov Public Portal at this web address: ci-spokanevalley-wa.smartgovcommunity.com/Public/Home Go to applications and search for STV-2020-0001 to review or download the staff report. If you have any questions, please contact Connor Lange, Planner, Building & Planning Division, at clange@spokanevalley.org. 10210 East Sprague • Spokane Valley, WA • 99206 • (509) 720-5240 • Fax (509) 720-5375 EXHIBIT 5 Staff Report and Recommendation STV-2020-0001 Page 11 of 11 August 18, 2020 From: Welch, Mark To: fonnorlewe Subject: FW: ST/-2020-0001_Agency Routing (Hanson Industries) Date: Friday, August 7, 2020 10:55:27 AM Attachments: image001.onq Hi Connor, We have previously responded to this request, and I sent this map of our facilities which I believe you already have included in your information package. I guess at this point, if they do want us to vacate/relocate, it would be a billing job to them to have us take care of that. Let me know if you need more information. Thanks, E DE,I_J AOQYG PEA-16918 Pedestal (default) Mark Welch Sr Network Implementation Program Manager 904 N. Columbus St, Spokane, WA, 99202 tel: 509.666.8545 cell: 509.703.2705 mark.welch@centurylink.com al re; Centurylink• E Desmer c..r 1. Ue From: Stoddard, Karen <Karen Stoddard1 Centurvl ink corn> Sent: Thursday, August 6, 2020 9:33 AM To: Welch, Mark<Mark.WelchPCenturyLink.com> Subject: FW: STV-2020-0001_Agency Routing (Hanson Industries) Hi Mark, L; EPIE52&QESMEF PED-1 701 G-DESMET Would you please check to see if we have any facilities on the east 220' of Desmet Court and Cul De Sac that the City wants to vacate located between Interstate 90 (north) and Nora Avenue (south) west of N Flora Rd.? Thanks, Karen Karen Stoddard Capacity Provisioning Specialist CenturyLink 904 N Columbus St Spokane, WA 99202 New Office Number: 509-666-8534 From: Connor Lange <clange(wspokanevalley.org> Sent: Wednesday, August 5, 2020 4:20 PM To: Bill Helbig <bhelbigPspokanevalley.org>• Chad Phillips<cphillips(olspokanevalley.org>• Jerremy Clark <jclark(olspokanevalley.org>• Shane Arlt <sarltPspokanevalley.org>• Spokane Valley Fire(inspectionsPSpokaneValleyFire.cam) <inspectionsPSpokaneValleyFire.cam>• Chris Johnston <crjohnstonPspokanesheriff.org>• CKnudsonPspokanecounty.org. CDEPNERPspokanecounty.org; Bruner, Jennifer S. <IBRUNERPSpokaneCounty.org>• Megan Bickley <MBickleyPSpokaneCounty.org>• Spokane Regional Health District <psavagePsrhd.org>; GreppPspokanecounty.org; Consolidated Irrigation District #19 <consolidatedirrigation(olcomcast.net>. ffyaaPwsdot.wa.gov. Spokane Transit Authority <kotterstrom1 spokanetransit.cam>. WA Dept of Arch and Hist Preservation <benaf dahn wa gov>• dave bvltsf avistacorn corn. Stoddard, Karen <Karen Stoddard1 Centurvl ink cam>• Comcast <brvan richardsonf cable comcast com> Subject: STV-2020-0001_Agency Routing (Hanson Industries) Good afternoon all, Attached is the Street Vacation application for Desmet Court for Hanson Industries for your review and comments. The comment period ends on August 17, 2020. The Public Hearing for street vacation will be held August 27th, 2020. Please let me know if you have any questions. Connor Lange 1 Planner 10210 E. Sprague Avenue 1 Spokane Valley, WA 99206 (509) 720-5332 1 clanae@sookanevallev.orp Y1 .0000s This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. This communication is the property of CenturyLink and may contain confidential or privileged information. Unauthorized use of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender by reply e-mail and destroy all copies of the communication and any attachments. CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. From: Bvus, Dave To: Connor Lanae Subject: RE: [External] STV-2020-0001_Agency Routing (Hanson Industries) Date: Tuesday, August 11, 2020 11:40:39 AM Attachments: imaae002.aif image003.gif imaae004.1pq Hi Connor, Avista Utilities serves the existing BSP-02-09 that is being impacted by this proposed street vacation. My comments relating to this proposal would be that we will need to relocate our existing utilities and would also need to review the altered BSP that will be required as a condition of the street vacation. We would like to pick up the utility easements and dedications for the relocated facilities in the alteration if possible. Please let me know if you need anything else or have any questions Thanks Dave Byus Real Estate Representative PO Box 3727 MSC-25 Spokane, WA 99220 1411 E Mission Ave. MSC-25 Spokane, WA 99202 P 509.495.2013 C 509.993.7852 http://www.avistautilities.com This email (including any attachments) may contain confidential and privileged information, and unauthorized disclosure or use is prohibited. If you are not an intended recipient, please notify the sender and delete this email from your system. Thank you. From: Connor Lange [mailto:clange@spokanevalley.org] Sent: Wednesday, August 5, 2020 4:20 PM To: Bill Helbig <bhelbig@spokanevalley.org>; Chad Phillips <cphillips@spokanevalley.org>; Jerremy Clark <jclark@spokanevalley.org>; Shane Arlt <sarlt@spokanevalley.org>; Spokane Valley Fire (inspections@SpokaneValleyFire.com) <inspections@SpokaneValleyFire.com>; Chris Johnston <crjohnston@spokanesheriff.org>; CKnudson@spokanecounty.org; CDEPNER@spokanecounty.org; Bruner, Jennifer S. <JBRUNER@SpokaneCounty.org>; Megan Bickley <MBickley@SpokaneCounty.org>; Spokane Regional Health District <psavage@srhd.org>; Grepp@spokanecounty.org; Consolidated Irrigation District #19 <consolidatedirrigation@comcast.net>; figgg@wsdot.wa.gov; Spokane Transit Authority <kotterstrom@spokanetransit.com>; WA Dept of Arch and Hist Preservation <sepa@dahp.wa.gov>; Byus, Dave <Dave.Byus@avistacorp.com>; Karen. Stoddard (karen.stoddard@centurylink.com) <karen.stoddard@centurylink.com>; Comcast<bryan_richardson@cable.comcast.com> Subject: [External] STV-2020-0001_Agency Routing (Hanson Industries) Good afternoon all, Attached is the Street Vacation application for Desmet Court for Hanson Industries for your review and comments. The comment period ends on August 17, 2020. The Public Hearing for street vacation will be held August 27th, 2020. Please let me know if you have any questions. Connor Lange I Planner 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720-5332 I clange@spokanevalley.org la This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. USE CAUTION - EXTERNAL SENDER Do not click on links or open attachments that are not familiar. For questions or concerns, please e-mail phishing@avistacorp.com CONFIDENTIALITY NOTICE: The contents of this email message and any attachments are intended solely for the addressee(s) and may contain confidential and/or privileged information and may be legally protected from disclosure. If you are not the intended recipient of this message or an agent of the intended recipient, or if this message has been addressed to you in error, please immediately alert the sender by reply email and then delete this message and any attachments. CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. From: Stoddard, Karen To: Connor Lanae Subject: RE: STV-2020-0001_Agency Routing (Hanson Industries) Date: Friday, August 7, 2020 9:34:49 AM Hi Connor, CenturyLink has facilities in the portion E Desmet Court that is to be vacated and we would like to retain the easement. Mark Welch has added the map of our facilities in the information that was in the attached documents on the original email. Thanks, Karen Karen Stoddard Capacity Provisioning Specialist CenturyLink 904 N Columbus St Spokane, WA 99202 New Office Number: 509-666-8534 From: Connor Lange <clange@spokanevalley.org> Sent: Wednesday, August 05, 2020 4:20 PM To: Bill Helbig <bhelbig@spokanevalley.org>; Chad Phillips <cphillips@spokanevalley.org>; Jerremy Clark <jclark@spokanevalley.org>; Shane Arlt <sarlt@spokanevalley.org>; Spokane Valley Fire (inspections@SpokaneValleyFire.com) <inspections@SpokaneValleyFire.com>; Chris Johnston <crjohnston@spokanesheriff.org>; CKnudson@spokanecounty.org; CDEPNER@spokanecounty.org; Bruner, Jennifer S. <JBRUNER@SpokaneCounty.org>; Megan Bickley <MBickley@SpokaneCounty.org>; Spokane Regional Health District <psavage@srhd.org>; Grepp@spokanecounty.org; Consolidated Irrigation District #19 <consolidatedirrigation@comcast.net>; figgg@wsdot.wa.gov; Spokane Transit Authority <kotterstrom@spokanetransit.com>; WA Dept of Arch and Hist Preservation <sepa@dahp.wa.gov>; dave.byus@avistacorp.com; Stoddard, Karen <Karen.Stoddard@CenturyLink.com>; Comcast <bryan_richardson@cable.comcast.com> Subject: STV-2020-0001_Agency Routing (Hanson Industries) Good afternoon all, Attached is the Street Vacation application for Desmet Court for Hanson Industries for your review and comments. The comment period ends on August 17, 2020. The Public Hearing for street vacation will be held August 27th, 2020. Please let me know if you have any questions. Connor Lange I Planner 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720-5332 I clange@spokanevalley.org This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. This communication is the property of CenturyLink and may contain confidential or privileged information. Unauthorized use of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender by reply e-mail and destroy all copies of the communication and any attachments. CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. From: Chad Phillips To: Connor Lanae; Bill Helbiq; Jerremv Clark; Shane Arlt Subject: RE: STV-2020-0001_Agency Routing (Hanson Industries) Date: Thursday, August 6, 2020 10:12:28 AM Connor — No concerns from a stormwater perspective. Roadway runoff is flowing away and there are no stormwater facilities in the vicinity of the proposed vacation. Thanks Chad Chad Phillips, P.E. I Engineer, Stormwater 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720 - 5013 I cphillips@spokanevalley.ore From: Connor Lange Sent: Wednesday, August 5, 2020 4:20 PM To: Bill Helbig <bhelbig@spokanevalley.org>; Chad Phillips <cphillips@spokanevalley.org>; Jerremy Clark <jclark@spokanevalley.org>; Shane Arlt <sarlt@spokanevalley.org>; Spokane Valley Fire (inspections@SpokaneValleyFire.com) <inspections@SpokaneValleyFire.com>; Chris Johnston <crjohnston@spokanesheriff.org>; CKnudson@spokanecounty.org; CDEPNER@spokanecounty.org; Bruner, Jennifer S. <JBRUNER@SpokaneCounty.org>; Megan Bickley <MBickley@SpokaneCounty.org>; Spokane Regional Health District <psavage@srhd.org>; Grepp@spokanecounty.org; Consolidated Irrigation District #19 <consolidatedirrigation@comcast.net>; figgg@wsdot.wa.gov; Spokane Transit Authority <kotterstrom@spokanetransit.com>; WA Dept of Arch and Hist Preservation <sepa@dahp.wa.gov>; dave.byus@avistacorp.com; Karen. Stoddard (karen.stoddard@centurylink.com) <karen.stoddard@centurylink.com>; Comcast<bryan—richardson@cable.comcast.com> Subject: STV-2020-0001_Agency Routing (Hanson Industries) Good afternoon all, Attached is the Street Vacation application for Desmet Court for Hanson Industries for your review and comments. The comment period ends on August 17, 2020. The Public Hearing for street vacation will be held August 27th, 2020. Please let me know if you have any questions. Connor Lange I Planner 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720-5332 I clange@spokanevalley.org This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. From: Fisher, Brent To: Connor Lanae Subject: RE: STV-2020-0001_Agency Routing (Hanson Industries) Date: Thursday, August 6, 2020 1:33:20 PM Attachments: Comcast Facilities on Flora.pdf Conner, Comcast has multiple buried Fiber & Coax cables in the proposed vacation area (see attached pdf). With that being the case, Comcast does not agree to the vacation. Someone would have to pay us to relocate our existing facilities — and it would be costly. Thank you, Ewe e:diteir Comcast Spokane Construction Specialist 2 509-755-4804 brent fisher@comcast.com From: Richardson, Bryan <Bryan—Richardson@cable.comcast.com> Sent: Thursday, August 6, 2020 6:44 AM To: Fisher, Brent <Brent—Fisher@cable.comcast.com> Subject: FW: STV-2020-0001_Agency Routing (Hanson Industries) Have you done these before? We have fiber in this area From: Connor Lange <clange( sookanevallev.org> Sent: Wednesday, August 5, 2020 4:20 PM To: Bill Helbig <bhelbigPsookanevallev.org>; Chad Phillips <cohilliosCisookanevallev.org>; Jerremy Clark <iclarkPsookanevalley.org>; Shane Arlt <sarltPsookanevallev.org>; Spokane Valley Fire (inspectionsPSpokaneValleyFire.com) <inspectionsPSpokaneValleyFire.com>; Chris Johnston <crjohnstonPsookanesheriff.org>; CKnudsonPsookanecountv.org; CDEPNERPsookanecountv.org; Bruner, Jennifer S. <JBRUNER( SookaneCountv.org>; Megan Bickley <MBickleyPSookaneCountv.org>; Spokane Regional Health District <osavagePsrhd.org>; Greoo( sookanecountv.org; Consolidated Irrigation District #19 <consolidatedirrigationPcomcast.net>; figggPwsdot.wa.gov; Spokane Transit Authority <kotterstromPspokanetransit.com>; WA Dept of Arch and Hist Preservation <sepaPdahp.wa.gov>; dave.byusPavistacorp.com; Karen. Stoddard(karen.stoddardPcenturylink.com) <karen.stoddardCicenturylink.com>; Richardson, Bryan <Bryan_RichardsonCicable.comcast.com> Subject: [EXTERNAL] STV-2020-0001_Agency Routing (Hanson Industries) Good afternoon all, Attached is the Street Vacation application for Desmet Court for Hanson Industries for your review and comments. The comment period ends on August 17, 2020. The Public Hearing for street vacation will be held August 27th, 2020. Please let me know if you have any questions. Connor Lange I Planner 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720-5332 I clange@spokanevalley.org 40,00Val ei ` This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. 7 5' #113553 (PCO) Comcast is on pole. Comcast has a surface mount Power Supply here (Alpha cabinet) and a green "doghouse" pedestal. Comcast has underground plant here. Multiple fibers and coax buried. Comcast has underground plant here. Multiple fibers and coax buried. #404346 (PCO) No Comcast on pole. Comcast has underground plant here. Multiple fibers and coax buried. F O 23r • PM. Comcast has aerial plant here. Multiple fibers and coax bundled. E BOONE AVE #A4213260 (PCO) D-End 2 Comcast Risers on pole (Fiber & Coax) Transition from overhead to underground. ❑ = PEDESTAL 0 = POLE - =AERIAL - =UNDERGROUND 1l� EXHIBIT 6 Staff Report and Recommendation STV-2020-0001 Page 12 of 12 August 18, 2020 From: Todd Whipple To: Connor Lanae; Bob Boyle Cc: Susan Moss; Save; Elliot Whipple Subject: RE: STV-2020-0001 STV Public Hearing_Noticing info Date: Tuesday, August 18, 2020 12:09:58 PM Attachments: image002.pnq Connor, Thank you, will you be inviting us, or will we need to log in ... thanks. Sincerely, Whipple Consulting Engineers, Inc. Todd R. Whipple, PE President Wk 509-893-2617 Cell 509-995-2939 toddw@whipplece.com IWCE Whipple Consulting Encji rb WCC priamdbli Wad DirveNOMOr aavrrccs Inro kitmime2 meas.i.M0dSuruel itq, CM, S t Ctura/ &rod TiMe. Erae/kaservq, oso rr;14TurrIIJ form Ltorticape! Araiiecrrrt 71 M..AuF.i rRnrB road . %[' kar.n Yr'..'V. WA V124 1NP 1IIGC, coin From: Connor Lange <clange@spokanevalley.org> Sent: Tuesday, August 18, 2020 11:15 AM To: Todd Whipple <toddw@whipplece.com>; Bob Boyle <bboyle@hansonind.com> Cc: Susan Moss <smoss@whipplece.com>; Save <save@whipplece.com> Subject: STV-2020-0001 STV Public Hearing_Noticing info Good morning Todd and Bob, I am emailing to remind you of the upcoming Public Hearing regarding the Street Vacation of Desmet Court on August 27th, 2020 with Planning Commission at 6pm (Via Zoom). However, before we move forward to the Public Hearing I wanted to inform you of an error that occurred on Staffs part with regards to the public hearing noticing. Noticing for Street Vacations are required 20 days prior to the public hearing for the newspaper, posting on -site, mailing to neighboring properties and posting in 3 conspicuous places in town. Staff provided the full 20 days for the newspaper noticing but only provided the typical (Type III public notice) of 15 days for the mailings, posting on -site and postings in conspicuous places. I am trying to gauge whether you want to proceed with the public hearing knowing that the error in the public noticing requirements was made because there is some risk if someone opposed was to challenge the vacation based on the procedural error. If you want to move forward with the Public Hearing knowing the risk could you please respond to this email and agree to move forward. If you don't want to move forward at this time we will work to get it on the agenda for Council (ASAP) to set a new public hearing date knowing that proper noticing requirements would be followed. I will note that no public comments have been received at this time nor has anyone reached out to me regarding the street vacation. I want to sincerely apologize for the error and any inconvenience this causes you. I also want to put it on your radar screen that a requirement of the street vacation (in addition to moving all the utilities that exist within the area) will be to file a Final BSP Alteration altering those easements that were created by the BSP. This can be done subsequently to the ROS for the street vacation or can be submitted prior. If you have any questions please don't hesitate to call. Thank you Connor Lange I Planner 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720-5332 I clange@spokanevalley.org This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 13, 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 20-015 — TDS Metrocom, LLC cable television franchise. 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; administrative report on TDS franchise October 6, 2020. BACKGROUND: The City was recently approached by TDS Metrocom, LLC (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 cable television was first introduced to the area in the mid-70's. 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. 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) Advance the ordinance to a second reading with or without amendments; or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: I move to advance Ordinance 20-013 granting a cable television franchise to TDS Metrocom, LLC to a second reading. BUDGET/FINANCIAL IMPACTS: The franchise will generate franchise fees of 5% of gross revenue, but it is unclear at this time how much of that will be in the current market. It should be noted that it will take TDS a several years to build out their facilities, which will affect the amount of franchise fees collected in the first few years. STAFF CONTACT: Cary Driskell, City Attorney; Morgan Koudelka, Senior Administrative Analyst; John Pietro, Administrative Analyst. ATTACHMENTS: Proposed Ordinance 20-015 granting cable television franchise to TDS. DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 20-015 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 20-015 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 20-015 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 20-015 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. 2020. IN WITNESS WHEREOF, has signed this _ day of Subscribed and sworn before me this day of , 2020. Notary Public in and for the State of residing in My commission expires Ordinance 20-015 TDS Metrocom, LLC, Cable Television Franchise Page 4 of 4 Meeting Date: CITY OF SPOKANE VALLEY Request for Council Action October 13, 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: City Manager Presentation of the Preliminary 2021 Budget. GOVERNING LEGISLATION: RCW 35A.33. PREVIOUS COUNCIL ACTION TAKEN: No formal Council action has been taken on the 2021 Budget. A proposed budget is currently under review by the City Manager and Finance Director. BACKGROUND: This marks the fourth occasion where the Council will discuss the 2021 Budget and by the time the Council is scheduled to adopt the 2021 Budget on November 24, 2020, Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from citizens: • August 4 Council Budget Workshop • September 8 • September 22 • October 13 • October 27 • November 10 • November 24 • November 24 Admin report: Estimated 2021 revenues and expenditures Public hearing #1 on 2021 revenues and expenditures City Manager's presentation of preliminary 2021 Budget Public hearing #2 on 2021 Budget First reading of ordinance adopting the 2021 Budget Public hearing #3 on 2021 Budget Second reading of ordinance adopting the 2021 Budget As part of the ongoing budget development process, and in keeping with RCW 35A.33, City Manager Mark Calhoun will present the 2021 Preliminary Budget for Council review. Until City Council adoption, all figures currently included in the 2021 Budget worksheets are preliminary and subject to change by the City Manager. OPTIONS: As part of the ongoing budget process, and in keeping with the requirements of RCW 35A.33.052, City Manager Calhoun will present the 2021 Preliminary Budget. RECOMMENDED ACTION OR MOTION: No action is required at this time. Adoption of the 2021 Budget is currently scheduled with a first reading of the budget ordinance on November 10, 2020 and a second reading on November 24, 2020. BUDGET/FINANCIAL IMPACTS: Given that the budget will not be adopted by the Council until November 24, 2020, it is possible the figures may be modified as we refine estimates of revenues and expenditures. STAFF CONTACT: Mark Calhoun, City Manager ATTACHMENTS: • Power Point presentation. • 2021 Draft Budget will be available under separate cover October 13, 2020 Spokane 2021 Budget Development considerations Council Goals Fiscal Policies Budget Highlights Challenges Spokane jUalley City of Spokane Valley Priorities Public Safety Pavement Preservation Transportation and Infrastructure Economic Development 2021 Budget Development Considerations Stiekane jValley 4 Spokane 2021 Budget is being prepared in the midst of a recession brought on by the COVID-19 pandemic We've slowed the budget development process to get a better sense of the resultant impact on revenue projections. At this point in time we still don't have a fully developed sense of the depth and breadth of those revenue reductions. 0,1.,,. *dime 4.00111;Valley CITY OF SPOKANE VALLEY, WA Sales Tax Collections - August For the years 2011 through 2020 January February March April May June July August 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 1,279,500 1,589,887 1,009,389 1,067,733 1,277,621 1,174, 962 1,290,976 1,302,706 1,299,678 1,671,269 1,133, 347 1,148, 486 1,358,834 1,320,449 1,389,802 1,424,243 1,465,563 1,677,887 1,170, 640 1,201,991 1,448,539 1,400,956 1,462,558 1,545,052 1,575,371 1,732,299 1,197, 323 1,235,252 1,462,096 1,373,710 1,693,461 1,718,428 1,684,700 1,863,225 1,316,682 1,378,300 1,640,913 1,566,178 1,641,642 1,776,653 1,746,371 1,992,273 1,369,740 1,389,644 1,737,933 1,564,119 1,751,936 1,935,028 1,877,899 2,078,412 1,536,252 1,564,282 1,926,551 1,762,119 1,871,077 2,053,961 1,980,940 2,240,908 1,648,657 1,549,275 1,955,470 1,946,112 2,067,987 2,232,342 2,121,051 2,253,852 1,776,898 1,687,355 1,627,596 1,651,937 2,291,842 2,368,495 2,393,597 Collected to date 9,798,936 10,012,952 10,911,993 11,482,994 12,097,269 12,929,964 13,618,572 14,773,594 15,761,802 16,051,572 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 16,051,572 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 (8,581,328) 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�� LLLLus. 68.96% 70.46% 71.55% 67.59% 68.62% 69.97% 68.60% 70.75% 68.78% 65.16% % of actual total co through August °(_ 65.78% 65.84% 66.43% 65.02% 64.58% 65.25% 65.12% n/a 9/28/2020 2019 to 2020 Difference $ % 12,944 0.58% 128,241 7.78% 138,080 8.91% (327,874) (16.77%) (294,175) (15.12%) 223,855 10.82% 136,153 6.10% 272,546 12.85% 289,770 1.84% 6 StiTokanedo"--11, .0\7alley CITY OF SPOKANE VALLEY, WA Hotel/Motel Tax Receipts through - Actual for the years 2011 through 2020 yu January February March April May June July August 2011 I 2012 I 2013 I 2014 I 2015 I 2016 I 2017 I 2018 I 2019 I 2020 22,212 22,792 24,611 38,230 33,791 41,403 49,312 57,452 21,442 21,549 25,655 52,130 37,478 43,971 52,819 57,229 24,185 25,975 27,739 40,979 40,560 47,850 56,157 63,816 25,425 26,014 29,384 48,246 41,123 52,618 61,514 70,384 27,092 27,111 32,998 50,455 44,283 56,975 61,809 72,697 31,887 27,773 34,330 52,551 50,230 55,060 65,007 73,700 27,210 26,795 31,601 52,242 50,112 60,637 69,337 76,972 28,752 28,878 I 31,906 I 57,664 I 51,777 { 62,048 71,865 79,368 31,865 32,821 40,076 59,117 53,596 73,721 84,628 91,637 36,203 31,035 37,395 24,959 16,906 28,910 41,836 49,772 9/28/2020 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%) (41,865) (45.69%) Total Collections 289,804 312,273 327,262 354,707 373,420 390,538 394,906 412,258 467,461 267,016 (200,445) (42.88%) •September 58,908 64,299 !October 39,028 November 37,339 December 32,523 Total Collections 457,603 Budget Estimate 480,000 Actual over (under) budg (22,397) ;Total actual collections as a % of total budget I% change in annual total collected of budget collected through August 95.33% 43,699 39,301 30,432 490,004 430,000 60,004 70,794 43,836 42,542 34,238 518,672 1 490,000 28,672 76,100 45,604 39,600 33,256 549,267 530,000 19,267 113.95% 105.85%1 103.64% 74,051 49,880 42,376 41,510 581,237 550,000 31,237 70,305 55,660 46,393 33,478 596,374 580,000 16,374 80,173 56,631 47,090 37,180 615,980 580,000 35,980 79,661 61,826 52,868 40,363 646,976 580,000 66,976 97,531 0 77,932 0 59,252 0 41,675 0 743,851 267,016 600,000 650,000 143,851 (382,984) 105.68%1 102.82% 106.20% 111.55% 123.98% n/a 2.02% 7.08% 5.85% 5.90% 5.82% 2.60% 3.29% 5.03% 14.97% n/a 60.38% 72.62% 66.79% 66.93% 67.89% 67.33% 68.09% 71.08% 77.91% 41.08% % of actual total collected through August 63.73% 63.10% 64.58% 64.25% 65.49% 64.11% 63.72% 62.84% n/a 7 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 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%) Collected to date 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 Budget estimate 780,000 875,000 975,000 1,100,000 1,400,000 2,000,000 2,000,000 3,000,000 Actual over (under) budget 180,751 310,707 346,650 467,429 731,578 353,822 1,007,573 800,432 Total actual collections as a % of total budget change in annual total collected of budget collected through July ifr«Lac ual total collected Lthrough_ 123.17% 135.51 % 135.55% 142.49% 152.26% 3,333,549 2,800,000 533,549 1,679,766 2,000,000 (320,234) 117.69% 150.38% 126.68% 119.06% n/a (0.16%) 23.41% 11.47% 18.60% 35.99% 10.43% 27.77% 26.36% (12.28%) n/a 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 8 Spokane liny 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Unemployment Rates January February March April May June Washington State Washington State Spokane County January I February Marc h April May June I July August 4.4% Spokane County 5.6% 4.2% 5.4% 16.1% 14.8% 5.6% 5.1% 16.7% 15.1% ikon is per the Washington State Employment Security Department 9.9% 9.7% 10.0% 11.3% 8.4% 9.3% 9 Spokane How do we address this in our budget development process? 2020 Sales Tax projections are amended downward by 10%. 2021 Sales Tax projections reflect a 2% increase. *Wane ��y Budget Development Goals Recurring annual revenues must be greater than recurring expenditures. Ending General Fund fund balance must be at least 50% of recurring expenditures. Stiek'ane Valley Council Goals Spokane galley 1. Work with state and federal legislators towards advancing the concepts outlined in The Bridging the Valley study including obtaining financial assistance for the Pines, Sullivan and Park Grade Separation Projects. 2. Actively pursue a plan to sustain the City's Street Preservation Program, to include sustained financing in Street O&M Fund #101 and Pavement Preservation Fund #311. 3. Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. 2021 Council Goals 13 Spokane galley 4. Sustain and expand where possible, economic development efforts including the retention and expansion of existing businesses and recruitment of new businesses. 5. Continue to foster relationships with federal, state, county and local legislators. 6. Pursue financing for Balfour Park and Appleway Trail amenities, and continue acquisition of park land. 7. Pursue financing for connections between the Appleway Trail, Balfour Park, Dishman Hills and the Centennial Trail creating where possible, a continuous loop for users. 2021 Council Goals Spokane.•10 galley 8. Maximize law enforcement contract staffing levels by enhancing recruiting efforts, minimizing out of service days, increasing retention, and taking steps to make the officer positions and the Spokane Valley Police Department increasingly appealing as a career path for those seeking to pursue a law enforcement career in Spokane Valley. 9. Increase community interactions, share information, and obtain feedback on current and future projects and priorities. 10. Prioritize involvement in public safety, in particular discussions regarding the jail and the criminal justice system, in order to maintain an understanding of options to keep our costs under control. 2021 Council Goals Fiscal Policies Stiekane Valley 16 *Wane u� Financial Manaqemerit Maintain basic service levels with minimal resources to achieve success. 2) Minimize personnel costs and overhead by continuing to contract when it makes financial sense to do so. 3) Continue the 6-Year Business Plan process. Spokane jvalley Financial Manaqement 4) Leverage City funds with grant opportunities. 5) Minimize City Debt with a pay as you go philosophy. The State of Washington sets the maximum level of allowable debt based on assessed value of property. The City of Spokane Valley currently utilizes only 1.53% of its total allowable debt capacity, and more importantly, only 7.66% of non -voted bond capacity. 6) Strive to prioritize spending in the annual budget process and minimize the mid -year addition of projects and appropriations. 18 s Financial Objectives 1) Adopt a General Fund Budget with recurring revenues equal to or greater than recurring expenditures. 2) Maintain a minimum General Fund ending fund balance that allows us to meet cash flow needs. This equates to at least 50% of total recurring expenditures. v 6 months of general fund operations 3) If necessary, utilize the Service Level Stabilization Reserve Fund #121 ($5.5 million) to maintain ending fund balance minimum. Spokane Financial Objectives .0f Valley 4; Commit to the strategy the Service Level Stabilization Reserve Fund will not be reduced below $3.3 million (60% of $5.5 million) without City Council approval. "If" Council should deem this necessary, the City will first replenish Fund #121 to at least $3.3 million before any annual General Fund transfers are made to Capital Reserve Fund #312. 5) Property Tax assessment will increase by only new construction in 2021 -approximately $325,000 (City will not take 1 %property tax increase for the 1 2th consecutive year) 6) Grow our economy so our existing tax base can support our basic programs. 20 s.•*Valley Commitment to Policies Long term financial sustainability. Spokane Valley. Budget Highlights 22 S itikanle .00Valley 2021 Program Budget Risk Management Debt Service General Government 425,000 1,043,850 5,384,723 Tourism Promotion 710,000 Parks & Recreation 3,142,674 Community and Public Works 5,957,563 Council / Executive/ Ops & Ad min 4,612,291 Stormwater & APA Funds 5,004,116 Street Fund 5,567,200 Other Activities 2,4502000 Public Safety 28,180,515 Capital Projects Funds 35,492,612 2021 CITY WIDE BUDGET $97,970,544 23 Spokane jvalley. We Remain Fiscally Sount;�_ General Fund Recurring Expenditures $45, 101,466 General Fund Recurring Revenues $45,426,41 9 -- --- -- --- -- - - Difference $324,953 >ValleyStaffing Levels Employee count is currently scheduled to remain unchanged at 95.25 employees in 2021. j�alley staffing Levels FTE change detail — 2020 to 2021 General Fund #001 Street O&M Fund #101 Street Capital Projects Fund #303 Stormwater Fund #402 2020 Budget as Adopted 2021 Staff Reallocation 2021 New Positions 2021 Budget Difference Between 2020 and 2021 75.78 7.47 8.10 3.90 0.50 0.00 (0.50) 0.00 0.00 0.00 0.00 0.00 76.28 7.47 7.60 3.90 0.50 0.00 (0.50) 0.00 95.25 0.00 0.00 95.25 0.00 26 OF SOokane Valley Public Safety Comparison of property tax to Public Safety (Police, courts, etc.) $30,000,000 $25,000,000 $20,000,000 $1 5,000,000 $1 0,000,000 $5,000,000 $12,724,200 $28,101,615 Spokane Valley *Wane u� Ending Fund Balance Projected General Fund fund balance at the end of 2021 is anticipated to be $33,036,464 or 73.25% of recurring expenditures. Minimum necessary to meet cash flow needs is 50%. We have a mechanism to "drain -off" excess fund balance to Capital Reserve Fund #312. Between 2013 and 2019, $27.8 million of excess reserves have been applied to one- time capital projects. - Sii•Miane .001017alley I MI PAVEMENT PRESERVATION, TRANSPORTATION & INFRASTRUCTURE Spokane Capital Projects jValley The 2021 Budget includes $32,524,699 for capital projects: General Fund IT & Misc. equipment PEG Fund #107 Street Capital Projects Fund #303 Park Capital Projects Fund #309 Capital Reserve Fund #312 Pavement Preservation Fund #311 RR GSP Fund #314 Stormwater & APA Fund #'s 402 & 403 ER&R Fund #501 Total** **. n- $ 254,200 33,500 8,876,315 1,120, 305 759,600 4,676,350 13, 796, 320 2,878,109 130,000 $32,524,699 art offset with $21, 079, 702 in grant revenues (64.81%) 31 Spokane jValleyPavement Preservation Fund #311 The 2021 Budget appropriates $4.7 million for a variety of pavement preservation projects. These will be financed from a number of sources including: #001 General Fund $991,843 #301 — 1st %% REET Capital Projects Fund 827,278 #302 — 2nd %% REET Capital Projects Fund 827,279 Street Wear Fee 1,500,000 #311 Pavement Preservation Fund Reserves 579,950 Total Sources $4, 726, 350 32 SiokaneStreet Capital Projects Fund #303 The 2021 Budget appropriates $8,876,315 for a variety of street construction and reconstruction projects. These will be financed from a number of sources including: Grants & other outside sources $6,897,011 #301 - 1st %% REET Capital Projects Fund 316,620 #302 - 2nd %% REET Capital Projects Fund 1,662,684 Total sources $8,876,315 33 Challenges Spokane Valley. 34 Challenges Declining telephone utility revenues in Street Fund #101. Balancing the cost of pavement preservation against other transportation and infrastructure needs. Railroad grade separation projects. Street O&M Fund #101 Gas tax receipts hover between flat and declining. 6% telephone utility tax generated $3.1 million in 2009 but has declined to a projected $1.4 million in 2021. average annual decline of 5.9%. projected receipts in 2021 are just 47% of 2009 actual receipts. Spokane jValley 2021 will be the fifth consecutive year of budgeted recurring expenditures exceeding recurring revenues. We've continued to deliver historic levels of service. In 2017 and 2018 -drawing down fund reserves. In 2019 -transferring $907,000 from Capital Reserve Fund #312. In 2020 -transferring $1,364,706 from Capital Reserve Fund #312 and $350,200 from the General Fund. Street O&M Fund #101 Street O&M Fund #101 In 2021 we've currently included in the budget a transfer of $1,859,600 directly from the General Fund. Our continuing challenge: Determining "how" to fully finance Street O&M Fund #101. Spokane jUalley Street O&M Fund #101 RECURRING ACTIVITY Revenues Utility Tax Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Miscellaneous Total Recurring Revenues Total Recurring Expenditures 2020 Budget Amendment As Amended 2021 Proposed Budget 1,521,000 0 1,521,000 1,431,000 2,046,700 (331,700) 1,715,000 2,062,000 131,500 (18,500) 113,000 130,600 70,000 0 70,000 70,000 17,000 0 17,000 4,000 10,000 0 10,000 10,000 3,796,200 (350,200) 3,446,000 3,707,600 5,160,906 0 5,160,906 5,567,200 Recur. Revenues Over (Under) Recur. Expenditures (1,364,706) (350,200) (1,714,906) (1,859,600) NONRECURRING ACTIVITY Revenues Transfer from Fund #001 0 350,200 350,200 1,859,600 Transfer from Fund #312 1,364,706 0 1,364,706 0 Total Nonrecurring Revenues Expenditures Nonrecur. RevOver (Under) Nonrecur. Exp 1,364,706 350,200 1,714,906 1,859,600 0 0 0 0 1,364,706 350,200 1,714,906 1,859,600 Total Revenues Over (Under) Total Expenditures 0 0 0 0 Beginning fund balance 556,265 556,265 556,265 LIL ing fund balance 556,265 556,265 556,265 39 SiokanePavement Preservation Fund #311 jValley Funding has historically come from a variety of sources: Fund 001 101 106 123 301/302 310 Street Civic Fac. Civic Fac. General Street O&M Wear Fee Replace. REET 1&2 Capital Grants Total Actual 2011 584,681 0 0 0 0 500,000 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2,090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198, 716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 2018 962,700 67,342 1,000,000 0 1,370,658 0 1,422,404 4,823,104 2019 972,300 0 1,608,028 0 1,545,277 0 2,398,330 6,523,935 Budget 2020 982,023 0 1,513,532 0 1,545,277 0 10,588 4,051,420 2021 991,843 0 1,500,000 0 1,654,557 0 0 4,146, 400 11,100, 430 972,644 5,621,560 2,408,660 9,338,341 500,000 8,489,062 38, 430, 697 40 SPo�� Pavement Preservation Fund #311 jValley In past years we struggled to develop a pavement management plan that clearly defined: The pavement condition index (PCI) that should be maintained throughout our road system. The cost of maintaining the PCI chosen. SPo�� Pavement Preservation Fund #311 jValley In 2018/2019 we worked with NCE to complete a study that answered those questions. Annual cost was pegged at $10 million. This will cover the needs of both Street Fund #101 and Pavement Preservation Fund #311. SPo�� Pavement Preservation Fund #311 jValley City annually commits approximately $6 million towards pavement management needs leaving an estimated annual shortfall of $4 million. Our entire road system was scanned in the second half of 2019 and we learned that our overall PCI was rated at a 76 (out of 100) which is considered to in the upper end of e "Good" category. SPo�� Pavement Preservation Fund #311 jValley At a Staff level we continue to investigate how we can stretch the money we have available and are currently evaluating alternative surface treatments. Council and Staff will continue to work collectively to determine how to finance a realistic pavement management program. Real Estate Excise Tax Fund #'s 301 & 302 Estimated REET available on January 1 Estimated REET revenues Estimated approved capital expenditures (Engineer's Estimate) Potential capital expenditures (Outstanding/Potential Grant Applications) 0143 Barker Road / BNSF Grade Separation Transfer to Fund #311 - Pavement Preservation WSDOT GRANT REPAY - 0069 PARK RD June 1 debt service payment on 2014 LTGO bonds December 1 debt service payment on 2014 LTGO bonds Estimated REET available on December 31 Shaded areas reflect known figures. All other figures are estimates. 2019 5,720,488 3,532,854 (39, 646) 0 (104,918) (1,468,600) (285,164) (12, 475) (152,475) 7,190, 064 2020 2021 2022 2023 2024 7,190, 064 5,294,225 2,421,427 926,770 491,013 2,070,000 2,050,000 1,400,000 1,400,000 1,400,000 (1,390,804) (1,979,304) (11, 300) 0 0 0 0 (1,066,600) (20, 000) (20, 000) (869, 008) (1,127, 387) 0 0 0 (1,545,277) (1,654,557) (1,654,557) (1,654,557) (1,654,557) 0 0 0 0 0 (10, 375) (8,275) (6,100) (3,100) 0 (150,375) (153,275) (156,100) (158,100) 0 5,294,225 2,421,427 926,770 491,013 216,456 45 Spokane jValleyRailroad Grade Separations Bridging the Valley Barker and Trent overpass - $24.7 million estimate Pines and Trent underpass - $29.0 million estimate Sullivan Road overpass Park Road overpass 46 Spokane jValleyRailroad Grade Separations Barker / Trent Grade Separation Project Project is fully funded. Design is complete. Right-of-way acquisition process is nearing completion. Construction funds have been obligated. Construction will begin in 2021. Spokane jValley Railroad Grade Separations Barker Grade Separation Project Financing Secured City of Spokane Valley General Fund reserves Real Estate Excise Tax (REET) Total from Spokane Valley Federal Earmark 2017 - WA Legislature appropriation 2018 - National Highway Freight Program 2018 - TIGER 9 FMSIB (20% of total) (assume $19.0 million) $ 1,421,000 2.209.000 $ 3,630,000 719,921 1,500,000 6,000,000 9,020,149 3.800.000 Spokane jValley Railroad Grade Separations Pines/Trent Grade Separation June 2019 —Council approves the design alternative. June 2019 — City received a $1.25 million CRISI grant CRISI contract finalized March 2020. May 2020 —Council approved final design contract. July 2020 — City began acquiring right-of-way. Spokane jValley Railroad Grade Separations Pines/Trent Grade Separation Project Design completion —estimated latter part of 2021. Right-of-way (ROW) acquisition — 2020-2022. Construction ready to begin in 2022/2023. Spokane jValleyRailroad Grade Separations Pines Grade Separation Project (Estimated cost of $29 million) Financing Secured City of Spokane Valley 2016 General Fund Property acquisition $ 500,000 2017 General Fund dedication 1,200,000 2017 General Fund allocation of fund balance > 50% 721,000 2018 General Fund allocation of fund balance > 50% 764,000 2019 General Fund allocation of fund balance > 50% 1,500,000 Total from Spokane Valley 2018 - SRTC for ROW (FHWA) 2019 - CRISI 2 for Design 2020 - SRTC (FHWA) Inactive FMSIB Grant from 2000 that was awarded to WSDOT 4,685,000 1,890,000 1,246,500 1,905,000 $ 9,726,500 $ 3,360,000 51 Si61ne Valley Spokane jValley 2021 Budget is being prepared in the midst of a recession brought on by the COVID-19 pandemic At this point in time we still don't have a fully developed sense of the depth and breadth of those revenue reductions. We'll continue to monitor the economy and revenue receipts and report back to Council as warranted. Spokane jValley Spokane Valley again has a balanced General Fund budget and overall remains in excellent financial condition. General Fund recurring revenues exceed recurring expenditures. Projected General Fund reserves (fund balance is at least 50% of recurring expenditures). Continued pattern of moderate growth in recurring expenditures and limited expansion of City programs. Summary The City of Spokane Valley continues to be in excellent financial condition with strong reserves and responsibly managed operations and related costs. Spokane Valley City of Spokane Valley, WA 2021 Preliminary Budget As of October 13, 2020 DRAFT �� oiioiitmorm00000a0000�a000�ggv;n� This page left intentionally blank. Spokane Val ley City Manager's Budget Message 2021 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: It is with cautious optimism that I present the 2021 Budget for the City of Spokane Valley. Noteworthy is that the 2021 Budget development process occurred in the midst of a recession brought on by the COVID-19 global pandemic. As a consequence, we slowed down the budget development and adoption process in order to get a better sense of the resultant impact on revenue projections for both the 2020 and 2021 Budgets. As I write this message it is still unclear what the depth and breadth of revenue reductions will be across the variety of City funds for which we adopt budgets but we recognize that the most material impacts will be felt in the following revenue areas: • Sales taxes (recorded in General Fund #001) • Building and permitting fees (recorded in General Fund #001) • Motor vehicle fuel taxes (recorded in Street O&M Fund #101) • Lodging taxes (recorded in Hotel/Motel Tax Fund #'s 104 and 105) • Real estate excise taxes (recorded in REET Fund #'s 301 and 302 and support capital projects in a number of City funds) This Council adopted 2021 Budget includes what we consider to be fiscally responsible revenue adjustments based upon what we currently know. Because the City has a long history of making prudent financial decisions dating back to our 2003 incorporation, because it has engaged in consistently responsible budgeting and restrained spending, because we have restrained the growth of City programs and related spending, and because we have adhered to the key Fiscal Policies noted in following pages, we have accumulated fund reserves that we believe will allow the City to deliver status quo levels of service throughout all of 2021. Budget Development Goals We recognize that to ensure continued financial stability, it is imperative that we achieve two key goals within our General Fund: 1. Recurring annual revenues must be greater than or equal to recurring annual expenditures, and 2. The ending General Fund fund balance must be sufficient enough to meet cash flow needs which is no less than 50% of recurring expenditures and represents roughly six months of General Fund operations. Even in light of the global pandemic and resultant recession, I am pleased to report that each of these goals have again been achieved in the 2021 General Fund Budget. Beyond recurring operating activity, and due to our exceptionally strong financial position, we 1 have been afforded the opportunity to use the portion of the General Fund fund balance that exceeds 50% of recurring expenditures for capital construction projects that are important to the City Council and Community. Following this policy of transferring the fund balance in excess of 50%, since 2013, City Councils have made the decision to transfer $27.8 million of excess General Fund reserves to partially finance a variety of projects including each phase of the Appleway Trail, Sullivan Road West Bridge Replacement, Appleway Avenue Landscaping, construction of a new City Hall, the future Barker/BNSF Grade Separation Project, and setting aside money for the Pines/BNSF Grade Separation Project, Barker Corridor Project and development of Balfour Park. Fiscal Policies Fiscal Health is at the Core of Providing a Good Public Service The Fiscal Policies adopted by the City Council are important for the long-range fiscal strength of Spokane Valley. These policies set a framework that the City will follow to responsibly manage resources and if necessary, under what circumstances we will utilize reserves to sustain operations during economic downturns. Financial Management The City will strive to: 1. Maintain basic service levels with minimal resources to achieve success. 2. Minimize personnel costs and overhead by continuing to contract for services when it makes financial sense to do so. 3. Continue the six -year Business Plan process. 4. Leverage City funds with grant opportunities. 5. Minimize City debt with a pay as you go philosophy. o The State of Washington sets the maximum level of allowable debt for cities based on assessed value of property. The City of Spokane Valley carries an exceptionally low debt burden and currently utilizes only 1.53% of its total debt capacity, and more importantly, only 7.66% of non -voted bond capacity. 6. Strive to prioritize spending in the annual budget process and minimize the mid -year addition of projects and appropriations. Financial Objectives The City's financial objectives are: 1. Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring expenditures. 2. Maintain a minimum General Fund Ending Fund Balance of at least 50% of the recurring expenditure budget. This is adequate to meet cash flow needs and is the equivalent of six months of general fund operations. 3. If necessary, utilize a portion of the Service Level Stabilization Reserve Fund #121 ($5.5 million) to maintain ending fund balance minimum. 4. Commitment to the strategy that the Service Level Stabilization Reserve Fund #121 will not be reduced below $3.3 million (60% of $5.5 million) without City Council approval. If Council should deem this necessary, the City will then first replenish Fund #121 to at least $3.3 million before any annual General Fund transfers are made to Capital Reserve Fund #312. 5. Maintain the 2021 property tax assessment the same as 2020 with the exception of new construction. As in the previous 11-years, the City will forego the 1% annual increase to property tax allowable by RCW 84.52.050. We anticipate this will result in a levy of 2 $12,399,200 plus estimated new construction of $325,000 for a total levy of $12,724,200. The allowable potential increase will be banked for future use as provided by law. This represents the twelfth consecutive year that we have not increased our City property tax assessment. 6. Grow our economy so the existing tax base can support basic programs. Commitment — By committing to these policies and the checks and balances they afford, the City will ensure financial sustainability well into the future. 2021 Budget Highlights City Priorities The City's chief budget priorities are: • Public Safety • Pavement Preservation • Transportation and Infrastructure (including railroad grade separations and park related projects), and • Economic Development Ensuring that we've committed adequate resources to these activities accounts for much of the effort that Council and Staff collectively dedicate to the annual development of our Business Plan and Operating and Capital budgets. Moderate Growth in Recurring General Fund Expenditures Investing in essential core services identified by the Council and Community establishes the baseline expenditures we have included in this budget. Similar to the trend experienced in most jurisdictions, we find that the cost of providing these services often increases at a faster rate than the moderate growth we see in the underlying tax revenues that support these core services. With that said however, City staff and Council collectively strive to meet the challenge of continuing to provide historic levels of service and we will again meet this challenge in 2021 where we anticipate recurring General Fund revenues will increase over those of 2020 by 2.20%, while expenditures increase by 5.14%. The 5.14% increase is computed after a 2020 Budget amendment that includes a $615,000 reduction in Parks and Recreation expenditures which is in recognition of the fact that the COVID-19 event has resulted in the elimination of many programs. If the $615,000 reduction in 2020 expenditures were not included, the 2021 Budget actually increases by 3.65%. 3 Increases at the point of budget adoption over the past 8-years have been: 2021 compared to 2020 2020 compared to 2019 2019 compared to 2018 2018 compared to 2017 2017 compared to 2016 2016 compared to 2015 2015 compared to 2014 2014 compared to 2013 Recurring Revenues Expenditures 2.20% 6.12% 5.56% 3.73% 4.38% 3.08% 2.72% 4.39% 5.14% 3.00% 1.90% 1.81% 0.87% 2.79% 3.90% 4.28% Public Safety Costs Over the years Council has consistently committed to the maintenance and at times enhancement of public safety service levels and this is again reflected in the 2021 Budget where public safety costs including law enforcement, courts, prosecution, public defense and jail related services represent the City's primary operating expenditure and total $28,101,615 which is a 4.57% increase over the 2020 Budget. Noteworthy about the public safety budget are the following observations: • It represents 62.3% of the 2021 General Fund recurring expenditure budget ($28,101,615 / $45,101,466). • It is equivalent to 221% of anticipated 2021 property tax collections ($28,101,615 / $12,724,200). In other words, if property taxes were to double they alone would not be sufficient to cover Spokane Valley's public safety commitment. Staffing Levels The Staff count remains unchanged from 2020 to 2021 with 95.25 full-time equivalent employees (FTEs) but does reflect the reallocation of Staff between departments, including: • A vacant 1.0 FTE Senior Transportation Planner position allocated to the Economic Development division has been repurposed to a 1.0 FTE Assistant Engineer position in the Engineering Division. • A vacant 1.0 FTE Engineer position allocated 50% to the Engineering Division and 50% to Street Capital Projects Fund #303 has been repurposed to a 1.0 FTE Housing and Homeless Services Coordinator position in the General Fund City Manager budget. This position will begin coordinating the City's approach to proactively addressing housing and homeless issues in our community. 4 The FTE count allocated among City funds is as follows: General Fund #001 Street O&M Fund #101 Street Capital Projects Fund #303 Stormwater Fund #402 2020 Budget as Adopted 75.78 7.47 8.10 3.90 2021 Staff Reallocation 0.50 0.00 (0.50) 0.00 2021 New Positions 0.00 0.00 0.00 0.00 2021 Budget 76.28 7.47 7.60 3.90 Difference Between 2020 and 2021 0.50 0.00 (0.50) 0.00 95.25 0.00 0.00 95.25 0.00 The personnel costs for the 76.28 FTEs charged to the General Fund represent just 21.9% of recurring expenditures. Taking into consideration that we contract for police services and are served by Fire and Water districts as well as a Library District, for a major city we operate substantially below the normal employee count and consequently at a significantly reduced payroll cost relative to many cities across the country. Spokane Valley staff levels average about one employee for every 1,023 citizens (= population of 97,490 per the WA State OFM / 95.25 FTEs) while comparably sized cities in the State of Washington have a much higher ratio of employees to citizens. Since incorporation, the City has taken a conservative approach to adding new staff and continues to have the lowest per capita employee count of any Washington city with a population of 50,000 or greater. By all comparisons, the City of Spokane Valley continues to be a lean, productive City government. Pavement Preservation Some may question paving roads that "don't look so bad" but the truth is the best time to repave is before a road deteriorates to the point that full reconstruction is necessary. Full reconstruction costs substantially more than pavement preservation treatments such as crack sealing or grinding and repaving and this is why the City has committed critical financial resources to the preservation of our transportation infrastructure. We're proud of our fine road system and will endeavor to continue to maintain it in the best manner possible with available financial resources. Beginning in 2012, the City initiated a program of expending general fund, special revenue fund and capital project fund revenues and reserves for the purpose of financing our street preservation efforts. In 2021, our community will again see an aggressive program of caring for roadways including the potential of surface treatment programs that would be new to Spokane Valley. For 2021, we project total revenues in Pavement Preservation Fund #311 of $4,146,400 that combined with $579,950 of fund reserves will be applied against $4,726,350 in projected expenditures. Sources of revenue in 2021 are anticipated to include $1,500,000 from the Street Wear fee that was adopted by Council in 2018, and $2,646,400 in transfers from other City funds consisting of: • $991,843 from the General Fund • $827,278 from REET 1 Capital Projects Fund #301 • $827,279 from REET 2 Capital Projects Fund #302 5 While Pavement Preservation is one of our critical service and budget priorities we find that sustaining adequate levels is a constant challenge and I address this in the portion of this budget message titled "Challenges". Transportation and Infrastructure The 2021 Budget includes $32,524,699 of capital expenditures that we anticipate will be in -part offset with $21,079,702 in grant revenues which results in 64.81% of capital projects being financed with State and Federal dollars. The projects we'll work on in 2021 partially include: • $8.88 million in Street Capital Projects Fund #303 • $1.12 million in Park Capital Projects Fund #309 • $4.68 million in Pavement Preservation Fund #311 • $759,600 for the final installment to WSDOT for the acquisition of nearly 14 acres future park property located north of Sullivan Park. • $13.80 million in Railroad Grade Separation Projects Fund #314 • $2.88 million in Stormwater Fund #402 and Aquifer Protection Area Fund #403 • $212,800 for Information Technology equipment acquisitions in the General Fund • $130,000 from Equipment Rental and Replacement Fund #502 for the replacement of existing vehicles in the Building and Planning Division of the General Fund #001 and the Street Fund #101. Challenges Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley has a number of on -going financial challenges. 1. Declining revenues in Street O&M Fund #101 that will impact our future ability to deliver historic service levels This Fund depends upon a combination of gas and telephone tax receipts. • Because the gas tax is a flat amount per gallon, and because each generation of newer vehicles get better gas mileage, we find our gas tax revenues hover somewhere between flat or slightly declining. Calendar year 2020 revenues were materially impacted by the COVID-19 event and amended downward by $331,700 (16.2%) from the initial 2020 Budget projection of $2,046,700 reflecting a material change in driving habits as much of the State population stayed home in order to physical distance from others. The 2021 Budget projection reflects a .7% increase over the 2020 Budget as initially adopted ($2,062,000 / $2,046,700) in anticipation of a return to normal (assuming a COVID-19 vaccine becomes available in early 2021 and widely distributed by yearend). • The 6% telephone utility tax generated $3,050,000 million in the first year of collections in 2009. Since that time however we have experienced a decline averaging 5.90% per year and at this point are projecting 2021 revenues of just $1,431,000 which is just 47% of the 2009 collections. We believe the decline is primarily due to the elimination of land lines by individual households. 6 • Because of the ongoing decline in telephone utility tax revenues, 2021 will be the fifth consecutive year of budgeted recurring expenditures exceeding recurring revenues. o We have been able to continue to deliver historic levels of service in the previous 4- years by doing the following: ■ 2017 - a $328,000 operating deficit was resolved by drawing down fund reserves. ■ 2018 - a $415,000 operating deficit was resolved by drawing down fund reserves. ■ 2019 - a $907,000 operating deficit was resolved through a transfer from Capital Reserve Fund #312. This is a noteworthy departure from the historic intended use of these monies which has been for one-time capital projects. ■ 2020 - a $1,714,096 operating deficit was resolved through a combination of transfers of $1,364,706 from Capital Reserve Fund #312 and $350,200 from the General Fund. 2021 - a $1,859,600 operating deficit was resolved through a transfer directly from the General Fund. • Determining "how" to fully finance Street O&M Fund #101 operations beyond 2021 will continue to be a Council conversation. 2. Balancing the cost of pavement preservation against other transportation and infrastructure needs • Pavement preservation has historically been financed from a combination of sources including: o General Fund dollars, o Street O&M Fund dollars, o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated towards this purpose until their depletion in 2016. o Real estate excise tax (REET) revenues, o Grant revenues, and o Beginning in 2018, the addition of a street wear fee that was negotiated by the City as part of an updated solid waste collection contract that recognized the damage that heavily laden garbage trucks do to our road system. o Following is a table that reflects pavement preservation related revenues over the 10- year period 2011 through 2021: Fund 001 101 106 123 301/302 310 Street Civic Fac. Civic Fac. General Street O&M Wear Fee Replace. REET 1&2 Capital Grants Total Actual 2011 584,681 0 0 0 0 500,000 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2,090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 2018 962,700 67,342 1,000,000 0 1,370,658 0 1,422,404 4,823,104 2019 972,300 0 1,608,028 0 1,545,277 0 2,398,330 6,523,935 Budget 2020 982,023 0 1,513,532 0 1,545,277 0 10,588 4,051,420 2021 991,843 0 1,500,000 0 1,654,557 0 0 4,146,400 11,100,430 972,644 5,621,560 2,408,660 9,338,341 500,000 8,489,062 38,430,697 7 • The City used Civic Facility Replacement Fund #123 reserves over the 4-year period 2013 through 2016 in order to give the City time to determine how best to finance the pavement preservation plan in 2017 and beyond. • In the years leading up to 2020 we existed in a fairly robust economy and beginning in 2017, following the depletion of Fund #123 reserves, we began applying a portion of our strong Real Estate Excise Tax (REET) collections towards pavement preservation. During this time frame we recognized that when the economy inevitably waned in the future, so too would REET revenues, and a consequence of over reliance on that source of money could in the future limit the City's ability to provide the necessary match needed for State and Federal grants that are applied to other street construction and reconstruction projects. Now, existing in the COVID-19 induced recession we find that our predictions may be coming to pass and recognize that the need to address alternative funding is more important than ever. • For a number of years Spokane Valley struggled to develop a pavement management plan that clearly delineated the pavement condition index (PCI) that should be maintained throughout our road system and define the amount of money we should dedicate annually to achieve that plan. • The results of one of our most recent studies was communicated to Council on April 2, 2019 and this answered the question of how pavement management resources should be allocated between the local access, collector and arterial portion of our street network. This study also estimated the annual cost to meet the needs of both Street O&M Fund #101 and Pavement Preservation Fund #311 to be $10 million. • Because the City annually commits approximately $6 million to pavement management needs this leaves us with an estimated annual shortfall of $4 million. • Even though the City's investment in our street network has consistently fallen short of that figure however we find that the PCI is not in a free fall and is in fact holding fairly steady at a rating of 76 (out of 100) which is considered to be in the "Good" category. • We continue to evaluate our pavement management plan and are currently considering a variety of pavement treatments beyond our historic use of crack sealing and grind and overlays. • Council and Staff will continue to work collectively to determine how to finance a realistic pavement management plan. 3. Railroad Grade Separation Projects (overpasses and underpasses) Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile corridor between Spokane and Athol, ID. The separation of railroad and roadway grades in this corridor is intended to promote future economic growth, traffic movement, traffic safety, aquifer protection in the event of an oil spill, and train whistle noise abatement. The underlying study outlined the need for a grade separation at four locations in Spokane Valley. • Barker and Trent Road Overpass (fully funded at $24.7 million), • Pines and Trent Underpass (estimated cost of $29.0 million), • Sullivan Road Overpass improvements, and • Park Road Overpass Because grade separation projects are exceptionally expensive endeavors and largely beyond our ability to finance solely through existing sources of internal revenue, the City has pursued grant funding from both the Federal and State Governments over the past several years. 8 Barker/Trent Grade Separation Proiect We reached the point of being fully funded for this project in early 2018, the design is complete, and we have acquired all necessary right-of-way with the exception of one parcel upon which we've received notification of a Cert 3 acceptance. We anticipate that construction funds will be obligated by late 2020 with construction beginning in 2021. Revenue sources are comprised of the following: Barker Grade Separation Project Financing Sources City of Spokane Valley General Fund reserves Real Estate Excise Tax (REET) Total from Spokane Valley Federal Earmark 2017 WA Legislature appropriation National Highway Freight Program TIGER 9 FMSIB (20% of total) (assume $19.0 million) $ 1,421,000 2,209,000 $ 3,630,000 721,000 1,500,000 6,000,000 9,020,000 3,800,000 $ 24,671,000 Pines / Trent Grade Separation Proiect Progress to date includes: • We anticipate the project cost will be $29.0 million and thus far we have secured $9.7 million including $4.7 million set aside by the City. Additionally, there exists an inactive Freight Mobility Strategic Investment Board (FMSIB) grant in the amount of $3.36 million. It is currently unclear whether these funds will be made available to Spokane Valley in the future. Following is a detailed list of sources secured: 9 Pines Grade Separation Project (Estimated cost of $29 million) Financing Secured City of Spokane Valley 2016 General Fund Property acquisition $ 500,000 2017 General Fund dedication 1,200,000 2017 General Fund allocation of fund balance > 50% 721,000 2018 General Fund allocation of fund balance > 50% 764,000 2019 General Fund allocation of fund balance > 50% 1,500,000 Total from Spokane Valley 2018 - SRTC for ROW (FHWA) 2019 - CRISI 2 for Design 2020 - SRTC (FHWA) 4,685,000 1,890,000 1,246,500 1,905,000 $ 9,726,500 Inactive FMSIB Grant from 2000 that was awarded to WSDOT $ 3,360,000 • In late 2016 the City acquired property valued at approximately $500,000 that was applied to the acquisition of property that will in -part satisfy the right-of-way needs for this project. • On July 11, 2017 Council approved a Phase 1 contract with an engineering firm valued at $124,000 with a scope of services that called for evaluating two potential sites, each of which included a roundabout and signalized intersection alternative. • Staff presented subsequent reports to Council that provided design progress updates on October 17, 2017, December 13, 2018 and June 4, 2019. • A total of five public outreach meetings were held between October 2017 and May 2019 to seek input on the design alternatives. • Input was sought from a variety of stakeholders including BNSF, the Spokane Valley Police Department, Spokane Valley Fire Department, East Valley School District, the Fourth District Legislative Delegation and freight industry representatives. • On June 18, 2019 Council approved a design alternative that moves the intersection to the east of the current location with a roundabout as intersection control. • In early June 2019 the City was awarded a Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant through the Federal Rail Administration (FRA) in the amount of $1,246,500. The related contract for the CRISI grant was completed in March 2020 and the proceeds are being applied towards the engineering design phase. • In May 2020 Council approved the contract to complete the engineering design phase of the project which we anticipate will be completed in the latter part of 2021. • In early 2020 the City was awarded an additional $1,905,000 towards right-of-way acquisition through the Spokane Regional Transportation Council (SRTC). • In July 2020 the City began acquiring right-of-way through the acquisition of three parcels. • Future property acquisitions will be necessary during the right-of-way phase of the project but this cannot be determined until the final phase of the design is well underway. We anticipate right-of-way activities will continue into 2022. 10 • With the engineering design phase completed by the end of 2021 and right-of-way acquisition phase completed in 2022 we anticipate the project will be "shovel ready" by December 2022. • For the construction phase of the project the City has applied for a variety of both state and federal grants including the TIGER, FASTLANE , INFRA, CRISI and BUILD programs. • We will continue to apply for grant programs as they become available. We are hopeful that having a 100% design will make us more competitive as we will then have a "shovel ready" project. Economic Development To the best of our ability we focus on business retention and expansion of existing businesses and recruitment of new businesses. Examples of economic development efforts include: Comprehensive Plan — In the latter part of 2016 the City updated its Comprehensive Plan and included an economic development element. Contained within this element is a summary of the local economy; an assessment of strengths and weaknesses; and policies, programs and projects to foster economic growth. The plan also included implementation strategies to improve retail, enhance tourism, and grow businesses in the City. Among other things, the plan also streamlined land uses by consolidating many zones and reducing many development requirements. Additionally the plan was also designed to provide flexibility in an effort to encourage market driven growth. Retail Recruitment — In 2017 the City expanded into the area of Retail Recruitment by contracting with a firm specializing in this type of service. The services we are seeking in this effort include a review of the retail recruitment strategy; conducting a market and retail gap analysis; development of a recruitment plan; identification of a strategic retail prospect list; and recruitment of retail on behalf of the City. We have again included money in the 2021 Budget to continue this effort. Planned Action Ordinance (PAO) — In the latter part of 2016 the City received a $114,200 grant from the Department of Commerce that with an additional investment of $55,000 from the City, resulted in a streamlined environmental permitting process in the northeast industrial area of our community. This study completed the environmental permitting requirements for the northeast industrial area which lead to the development of a Planned Action Ordinance (PAO) adopted by Council March 12, 2019. The PAO saves industrial developers a minimum of 6 weeks permitting time while providing a predictable path to ensure that adequate infrastructure is in place to serve the expected developments and as a result of the PAO properties can now be marketed as truly "shovel ready". Northeast Industrial Area — In addition to the adoption of the Planned Action Ordinance the City has engaged in a number of capital projects in our Northeast Industrial Area that resulted in the expansion and improvement of our infrastructure and have the dual benefit of improving our road system and making the area more attractive for future economic development. These include: • In 2019 we rebuilt Barker Road from Euclid Avenue to the southern limits of the Barker Grade Separation project including the extension of sewer service by Spokane County. • In partnership with Centennial Properties, in 2020 we completed a project that began in 2019 that resulted in the construction of a new one -mile section of Garland Avenue that stretches from Flora to Barker. This new stretch of road made 150 additional acres of 11 industrial property accessible to development. • The City began a construction project in 2020 that will be completed in 2021 what will rebuild Barker Road from Euclid Avenue running south to the Spokane River. The Budget for 2021 Strong but Guarded Recognizing that fiscal health is at the core of providing good public services, one of the most important tests of fiscal management is the ability of a municipal enterprise to maintain basic services during an economic downturn. The creation and ongoing maintenance of financial reserves since incorporation has served the intended purpose of providing Spokane Valley the means to sustain critical public services during turbulent economic conditions including those experienced during the Great Recession that began in 2008 and the COVID-19 induced global recession we are currently experiencing. The 2021 Budget again reflects a prudent and guarded continuation of service delivery capabilities. In the budget message I wrote last year I included the following statement: "We are cognizant of the fact that we currently exist in the longest economic expansion in United States history and at this point, with each passing day we are closer to the next economic downturn. Given this, we will remain vigilant in our observance of local, state and national events and economic trends that may impact our own community and work towards capitalizing on our strengths, minimizing our weaknesses, and being ever watchful towards both threats and opportunities." As I write this message we exist in a global recession brought on by the COVID-19 pandemic. While we are uncertain of the depth and breadth of the impact this event will have on City revenues and the programs they support, we will in the future, as we have in the past, "continue to remain vigilant in our observance of local, state and national events and economic trends that may impact our own community and work towards capitalizing on our strengths, minimizing our weaknesses, and being ever watchful towards both threats and opportunities." Balanced Budget Means exactly what it says — recurring General Fund operating expenses and the programs they support have been balanced with known or reasonably predictable recurring revenues with no increase in property tax or in sales tax rates for the City. The budget is designed to maintain the healthy, positive fund balance at year-end which provide for the City's cash flow needs without costly borrowing. In pursuit of fiscal responsibility, special attention is given to limiting the growth in new programs and financial commitments. This approach allows available resources to be put toward sustaining services consistent with the City Council's priorities for 2021 and beyond. 12 Acknowledgments I would like to acknowledge the Community, City Council and Staff for a long history of financially responsible spending and sensible fiscal planning. By saving and conserving the taxpayers' money and by adopting and adhering to prudent Tong -term fiscal policies, the City will in 2021 provide levels of service on par with those we've provided in past years even while in the grip of a global recession induced by the COVID-19 pandemic. The City Council continues to set a path to ensure the long-term financial sustainability of the City. The management staff and employees have worked together to develop the Business Plan and 2021 Budget recommendations to achieve the Council's ongoing goal of sustainability. I hope the Citizens of Spokane Valley are proud of the programs and strong financial condition of their City. We invite your examination and questions regarding the 2021 Budget. Respectfully, Mark Calhoun City Manager 13 Spokane jUallcy 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: City Manager and Members of the City Council FROM: Chelsie Taylor, Finance Director SUBJECT: About the 2021 Budget and Budget Development Process The budget includes the financial planning and legal authority to obligate public funds. Additionally, the budget provides significant policy direction by the City Council to the staff and community. As a result, the City Council, staff and public are involved in establishing the budget for the City of Spokane Valley. The budget serves four functions: 1. It is a Policy Document The budget functions as a policy document in that the decisions made within the budget will reflect the general principles or plans that guide the actions taken for the future. As a policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day-to- day activities of the City staff. 2. It is an Operational Guide The budget of the City reflects its operation. Activities of each City function and organization have been planned, debated, formalized, and described in the following sections. This process will help to maintain an understanding of the various operations of the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. It is a Link with the General Public The budget provides a unique opportunity to allow and encourage public review of City operations. The budget describes the activities of the City, the reason or cause for those activities, future implications, and the direct relationship to the citizenry. 4. It is a Legally Required Financial Planning Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement of all cities as stated in Title 35A of the Revised Code of Washington (RCW). The budget must be adopted as a balanced budget and must be in place prior to the beginning of the City's fiscal year. The budget is the legal authority to expend public monies and controls those expenditures by limiting the amount of the appropriation at the fund level. The revenues of the City are estimated, along with available cash carry -forward, to indicate funds available. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. 2021 BUDGET DEVELOPMENT PROCESS Historically the City has utilized a budgeting approach that assumed for most functions of government that the current year's budget was indicative of the base required for the following year. However, with the volatility that was seen in the economy with the Great Recession and again with the COVID-19 pandemic, the City moved to a Budget development process that consciously reviews service levels in each department and determines the appropriate level of funding that meets Council goals relative to available resources. 14 The 2021 Budget development process began at the February 11, 2020 Council workshop where among other topics, Council and staff discussed the budget in general terms. Due to the COVID- 19 pandemic, the City's budget development process was delayed in order to account for some of the uncertainty surrounding revenue projections. In mid -April 2020 the Finance Department notified City Departments that their 2021 revenue and expenditure estimates were due by mid - May. Through the summer, the City Manager's office and Finance Department worked to prepare budget worksheets that were communicated to the City Council at a Budget workshop held August 4, 2020. Following the workshop, the Finance Department continued work on the budget including refinements of revenue and expenditure estimates and through September, the Finance Department and City Manager reviewed updated budget projections. By the time the 2021 Budget is scheduled to be adopted on November 24, 2020, the Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from citizens: August 4 September 8 September 22 October 13 October 27 November 10 November 24 November 24 Council budget workshop Admin report: Estimated 2021 revenues and expenditures Public hearing #1 on 2021 revenues and expenditures City Manager's presentation of preliminary 2021 Budget Public hearing #2 on 2021 Budget First reading on ordinance adopting the 2021 Budget Public hearing #3 on the 2021 Budget Second reading on ordinance adopting the 2021 Budget Once adopted, the final operating budget is published, distributed, and made available to the public. After the budget is adopted, the City enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that actual expenditures are in compliance with the approved budget. The Finance Department provides the City Manager and City Council with monthly reports to keep them abreast of the City's financial condition and individual department compliance with approved appropriation levels. Any budget amendments made during the year are adopted by City Council ordinance following a public hearing. The City Manager is authorized to transfer budgeted amounts within a fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges or other conditions of employment must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance adopted by Council after holding one public hearing. BUDGET PRINCIPLES • Department directors have primary responsibility for formulating budget proposals in line with City Council and City Manager priority direction, and for implementing them once they are approved. 15 • The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget. This function is fulfilled in compliance with applicable State of Washington statutes governing local government budgeting practices. • The Finance Department assists department staff in identifying budget problems, formulating solutions and alternatives, and implementing any necessary corrective actions. • Interfund charges will be based on recovery of costs associated with providing those services. • Budget amendments requiring City Council approval will occur through the ordinance process at the fund level prior to fiscal year end. • The City's budget presentation will be directed at displaying the City's services plan in a Council/constituent friendly format. • No long term debt will be incurred without identification of a revenue source to repay the debt. Long term debt will be incurred for capital purposes only. • The City will strive to maintain equipment replacement funds in an amount necessary to replace the equipment at the end of its useful life. Life cycle assumptions and required contributions will be reviewed annually as part of the budget process. New operations in difficult economic times may make it difficult to fund this principle in some years. • The City will pursue an ending general fund balance at a level of no less than 50% of recurring expenditures. This figure is based upon an evaluation of both cash flow and operating needs. BASIS OF ACCOUNTING AND BUDGETING Accounting Accounting records for the City are maintained in accordance with methods prescribed by the State Auditor under the authority of the Revised Code of Washington (RCW), Chapter 43.09.20, and in compliance with generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. Basis of Presentation - Fund Accounting The accounts of the City of Spokane Valley are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of double -entry accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The following are the fund types used by the City of Spokane Valley: Governmental Fund Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or "financial flows" measurement focus, which means that typically only current assets and current liabilities are included on related balance sheets. The operating statements of governmental funds measure changes in financial position, rather than net income. They present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. There are four governmental fund types used by the City of Spokane Valley: 16 1. General Fund This fund is the primary fund of the City of Spokane Valley. It accounts for all financial resources except those required or elected to be accounted for in another fund. 2. Special Revenue Funds These funds account for revenues that are legally restricted or designated to finance particular activities of the City of Spokane Valley. Special Revenue funds include: • #101 — Street Fund • #103 — Paths & Trails Fund • #104 — Hotel / Motel Tax — Tourism Facilities Fund • #105 — Hotel / Motel Tax Fund • #106 — Solid Waste Fund • #107 — PEG Fund • #108 — Affordable & Supportive Housing Sales Tax Fund • #120 — CenterPlace Operating Reserve Fund • #121 — Service Level Stabilization Reserve Fund • #122 — Winter Weather Reserve Fund 3. Debt Service Funds These funds account for financial resources which are designated for the retirement of debt. Debt Service Funds are comprised of the #204 — LTGO Debt Service Fund. 4. Capital Project Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects. Capital Project Funds include: • #301 — REET 1 Capital Projects Fund • #302 — REET 2 Capital Projects Fund • #303 — Streets Capital Projects Fund • #309 — Parks Capital Projects Fund • #310 — Civic Facilities Capital Projects Fund • #311 — Pavement Preservation Fund • #312 — Capital Reserve Fund • #314 — Railroad Grade Separation Projects Fund Proprietary Fund Types A second type of fund classification is the Proprietary Funds that are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non -current assets and liabilities are reported on related balance sheets. Their reported fund equity (total net assets) is segregated into restricted, unrestricted and invested in capital assets classifications. As described below, there are two generic fund types in this category: 1. Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. This type of fund includes: • #402 — Stormwater Management Fund • #403 — Aquifer Protection Area Fund 17 2. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. This type of fund includes: • #501 — Equipment Rental and Replacement Fund • #502 — Risk Management Fund Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized, recorded in the accounting system and ultimately reported in the financial statements. • Modified Accrual Basis of Accounting is used for all governmental funds. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. • Accrual Basis of Accounting is used for enterprise and internal service funds. Under this system revenues and expenses are recognized in the period incurred rather than when cash is either received or disbursed. Budgets and Budgetary Accounting Annual appropriation budgets are adopted for all funds with Governmental Funds utilizing a modified cash basis of accounting for budget purposes and Proprietary Funds utilizing a working capital approach. Budgets are adopted at the fund level that constitutes the legal authority for expenditures, and annual appropriations for all funds lapse at the end of the fiscal period. EXPLANATION OF MAJOR REVENUE SOURCES General Fund #001 • Property Tax Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a $3.60 levy per $1,000 assessed valuation, deducting from there the levy of up to $1.50 by the Spokane County Fire Districts #1 and #8, along with deducting up to $0.50 for the Library District, which leaves the City with the authority to levy up to $1.60 for its own purposes. The levy amount must be established by ordinance by November 30th prior to the levy year. • Retail Sales and Use 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 Department of Revenue who then remits the taxes back to the various agencies that have imposed the tax. The allocation of the 8.9% tax rate to the agencies is as follows: 18 State of Washington City of Spokane Valley Spokane County Criminal Justice Spokane Public Facilities District Public Safety Juvenile Jail Mental Health Law Enforcement Communications Spokane Transit Authority 6.50% _ 0.85% 0.15% 0.10% 0.10% * 0.10% * 0.10% * 0.10% * 0.10% * 0.80% * 8.90% * Indicates voter approved sales taxes. 2.30% local tax • Criminal Justice Sales Tax Local Sales Tax for Criminal Justice funding is to be used solely for criminal justice purposes, such as the City's law enforcement contract. This tax is authorized at 1/10 of 1% of retail sales transacted in the County. Of the total amount collected, the State distributes 10% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the County and cities within the County. • Public Safety Sales Tax Beginning in 2005, an additional 0.1% voter approved increase in sales tax was devoted to public safety purposes. This 0.1% was approved by the voters again in August 2009. Of the total amount 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. • Gambling Tax Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. An extension of the deadlines for the 2nd and 3rd quarters of 2020 was authorized by the City Council due to the COVID-19 pandemic and related economic shut -downs mandated at the State level. The City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); Raffles (5% gross, less prizes); Punchboards and Pull tabs (5% gross, less prizes); Amusement Games (2% gross, less prizes); Card playing (6% gross). • Leasehold Excise Tax Taxes on property owned by state or local governments and leased to private parties (City's share). 19 • Franchise Fees Cable TV is the only franchise fee levied in the City at a rate of 5% of gross revenues. This is a fee levied on private utilities for the right to use city streets, alleys, and other public properties. • State -Shared Revenues State -shared revenues are received from liquor sales, marijuana revenues, and motor vehicle excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. State -shared revenues are distributed on either a monthly or quarterly basis, although not all quarterly revenues are distributed in the same month of the quarter. The 2020 population figure used in the 2021 Budget is 97,490 as reported by the Office of Financial Management for Washington State on April 1, 2020. This figure is important when determining distribution of State shared revenues on a per capita basis. • Fines and Forfeitures / Public Safety Fines and penalties are collected as a result of Municipal Court rulings, false alarm fees, and other miscellaneous rule infractions. All court fines and penalties are shared with the State, with the City, on average, retaining less than 50% of the amount collected. • Community Development Community Development revenues are largely composed of fees for building permits, plan reviews, and right-of-way permits. • Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset direct costs related to providing the program. • CenterPlace Fees The Parks and Recreation Department charges fees for use of CenterPlace. Uses include regional meetings, weddings, receptions and banquets. Rental rooms include classrooms, the great room and dining rooms. • Investment Interest The City earns investment interest on sales tax money held by the State of Washington prior to the distribution of the taxes to the City, as well as on City initiated investments. Street Fund #101 • Motor Vehicle Fuel Excise Tax (gas tax) The State of Washington collects a $0.494 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2021 the Municipal Research and Services Center estimates the distribution back to cities will be $21.24 per person. Based upon a City of Spokane Valley population of 97,490 (per the Washington State Office of Financial Management on April 1, 2020) we anticipate the City will collect $2,070,700 in 2021. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2021 revenue estimate this computes to 20 $8,700. The balance of $2,062,000 will be credited to Fund #101 for street maintenance and operations. • Telephone Utility Tax The City of Spokane Valley levied a 6% telephone utility tax via Ordinance #08-014 with collections beginning in 2009. Telephone companies providing this service pay the tax to the City monthly. Telephone tax has been estimated at $1.4 million for 2021. Paths & Trails Fund #103 Cities are required to spend 0.42% of the motor vehicle fuel tax receipts on paths and trails (please see the explanation for Street Fund #101) which we anticipate will be $8,700 in 2021. Because the amount collected in any given year is relatively small, it is typical to accumulate State distributions for several years until adequate dollars are available for a project. Hotel / Motel Tax — Tourism Facilities Fund #104 The City imposes a 1.3% tax under RCW 67.28.181 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The revenues generated by this tax may only be used for capital expenditures for acquiring, constructing, making improvements to or other related capital expenditures for large sporting venues, or venues for tourism -related facilities. The hospitality industry, including hotels, was one of the industries affected the most by the COVID- 19 pandemic due to reduced travel from the State's stay home order. This being the case, the City experienced significant reductions in hotel/motel tax collections in 2020 which are expected to continue into 2021. This tax is estimated to generate $213,000 in 2021. Hotel / Motel Tax Fund #105 The City imposes a 2% tax under RCW 67.28.180 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The tax is taken as a credit against the 6.5% state sales tax, so that the total tax that a patron pays in retail sales tax and hotel/motel tax combined is equal to the retail sales tax in the jurisdiction. The revenues generated by this tax may be used solely for paying for tourism promotion and for the acquisition and/or operation of tourism -related facilities. The reductions described under Fund #104 above also apply to these revenues. This tax is estimated to generate $346,000 in 2021. Solid Waste Fund #106 Under the City's contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc., Sunshine pays an annual contract administrative fee of $125,000 to the City. Also, under the City's contract for solid waste collection services with Waste Management of Washington, Inc., Waste Management pays an administrative fee of 12.5% of gross receipts. This fee shall be used by the City for costs related to solid waste services, including costs for contract administration, solid waste planning and management, and for a portion of the City's street preservation and maintenance programs. Of the amounts collected under the fee, no more than 1 % of gross receipts may be used for contract administration. PEG Fund #107 Under the City's cable franchise, the franchise grantee remits to the City in a capital contribution in support of Public Education Government (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. Capital contributions collected under this agreement are allocated to PEG capital uses 21 exclusively. PEG capital uses include, in part, the set-up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. LTGO Debt Service Fund #204 This fund is used to account for the accumulation of resources for, and the payment of limited tax general obligation (LTGO) bonds also referred to as councilmanic or non -voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non -voted general obligations. In 2003 the City issued $9,430,000 in limited tax general obligation (LTGO) bonds the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2021, the outstanding balance on this portion of the bond issue will be $4,100,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax. At January 1, 2021 the outstanding balance on this portion of the bond issue will be $450,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which were used to finance the construction of a new City Hall along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30-year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2021, the outstanding balance on the bond issue will be $6,570,000. REET 1 Capital Projects Fund #301 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an excise tax on each sale of real property at the rate of one -quarter of one percent of the selling price. The revenue generated is used for financing capital projects as specified in the capital facilities plan under the Growth Management Act. REET 2 Capital Projects Fund #302 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an additional excise tax on each sale of real property at the rate of one -quarter of one percent of the selling price. The revenue generated is used for financing public works capital projects as specified in the capital facilities plan under the Growth Management Act. 22 Stormwater Management Fund #402 A stormwater fee is imposed upon every developed parcel within the City, which is an annual charge of $21 for each single family unit and $21 per 3,160 square feet of impervious surface for all other properties. These charges are uniform for the same class of customers and service facilities. These fees are estimated to generate $1,900,000 in 2021. Aquifer Protection Area (APA) Fund #403 These are voter approved fees, the proceeds of which are applied to aquifer protection related capital construction projects. Fees are collected by Spokane County and remitted to the City twice each year. These fees are estimated to generate $460,000 in 2021. Fees include: • An annual fee of $15 per household for the withdrawal of water from properties within the APA. • An annual fee of $15 per household for on -site sewage disposal by properties within the APA. • For commercial properties an annual fee ranging from $15 to $960 depending upon water meter size. Interfund Transfers Many funds receive a portion of their revenues from other funds in the form of an interfund transfer. These transfers typically represent payments for either services rendered by one fund for another or a concentration of revenues for a specific project or purpose. The following interfund transfers are planned for 2021: In: 001 101 204 303 309 311 314 501 502 Total Out Out: 001 105 106 301 302 312 0 30,000 1,859,600 0 401,500 0 0 0 160,000 991,843 0 36,600 425,000 Total In 0 0 0 0 30,000 0 0 0 0 1,859,600 0 80,775 80,775 0 563,050 0 316,620 1,662,684 0 1,979,304 0 0 0 0 565,150 725,150 0 1,500,000 827,278 827,279 0 4,146,400 0 0 0 1,127, 387 725,774 1,853,161 0 0 0 0 0 36,600 0 0 0 0 0 425,000 11,618,265 Total in 3,874,543 30,000 1,500,000 1,224,673 3,698,125 1,290,924 11, 618, 265 Total out 0 #001 — General Fund is budgeted to transfer out $3,874,543 including: • $1,859,600 to Fund #101 — Street Fund as coverage of the estimated deficit in recurring activity for the 2021 Budget. • $401,500 to Fund #204 — LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. • $160,000 to Fund #309 — Park Capital Projects Fund for park related projects. • $991,843 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. • $36,600 to Fund #501 — Equipment Rental and Replacement Fund to fund a CenterPlace kitchen equipment replacement reserve for $36,600. 23 • $425,000 to Fund #502 — Risk Management Fund for the 2021 property and liability insurance premium. #105 — Hotel / Motel Tax Fund is budgeted to transfer $30,000 to Fund #001 — General Fund for the purpose of financing advertising at CenterPlace. #106 — Solid Waste Fund is budgeted to transfer $1,500,000 to the Pavement Preservation Fund #311 for the purpose of funding pavement preservation projects on local access streets. #301 — REET 1 Capital Projects Fund is budgeted to transfer out $1,224,673 including: • $80,775 to Fund #204 — LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $316,620 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $827,278 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. #302 — REET 2 Capital Projects Fund is budgeted to transfer out $3,698,125 including: • $80,775 to Fund #204 — LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $1,662,684 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $827,279 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. • $1,127,387 to Fund #314 — Railroad Grade Separation Projects Fund for the Barker Rd. grade separation project. #312 — Capital Reserve Fund is budgeted to transfer out $1,290,924 including: • $565,150 to Fund #309 — Parks Capital Projects Fund that will be applied towards segments of the Appleway Trail. • $725,774 to Fund #314 — Railroad Grade Separation Projects Fund that will be applied to grade separation projects at Barker, Pines, and Sullivan Roads. SIGNIFICANT ASSUMPTIONS IN THE 2021 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2021 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total $98 million including $32.6 million in capital expenditures, comprised in -part of: o $8.9 million in Fund #303 — Street Capital Projects. o $1.1 million in Fund #309 — Park Capital Projects. o $4.7 million in Fund #311 — Pavement Preservation projects. o $760 thousand in Fund #312 — Capital Reserve land acquisition o $13.8 million in Fund #314 — Railroad Grade Separation Projects. o $500 thousand in Fund #402 — Stormwater Management projects. o $2.4 million in Fund #403 — Aquifer Protection Area projects. • To partially offset the $32.6 million in capital costs, we anticipate $21.1 million in grant revenues which results in 64.75% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 24 separate funds. • The full time equivalent employee (FTE) count will remain 95.25 in 2021. There is one vacant position in Economic Development being repurposed to Engineering due to workload and one 24 vacant Engineer position that was budgeted 50/50 between Engineering and Street Capital Projects being repurposed to a Housing & Homeless Services Coordinator in the City Manager department. • The 2021 Budget reflects the seventh consecutive year the City will set aside City monies in an amount equivalent to 6% of General Fund recurring expenditures for pavement preservation in Fund #311 — Pavement Preservation. This 6% equals $2,646,400. • Positions and salary ranges are based on the City's compensation and classification plan. • Payroll tax and benefit amounts are based on staff benefit plans. • Contract costs for public safety, park maintenance, aquatics and street maintenance are based on estimates by City staff. • The City is setting money aside in Fund #501 — Equipment Rental and Replacement for the eventual replacement of its vehicles as well as a reserve to replace equipment in the kitchen at CenterPlace. 2021 General Fund Revenues • Total recurring 2021 revenues are estimated at $45,426,419 as compared to $44,448,300 in 2020, which is an increase of $978,119 or 2.20%. However, this is a decrease of 5.91% from the original adopted 2020 Budget amount of $48,281,800. Revenue estimates in 2020 were amended down due to the effects of the COVID-19 pandemic on the economy. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 83.35% of 2021 General Fund recurring revenues. • The 2021 general sales tax estimate (excluding criminal justice and public safety sales taxes) is reflective of the revised estimated 2020 receipts to date due to the COVID-19 pandemic and are currently estimated at $22.2 million which reflects an increase of $436,000 or 2.0% over the 2020 estimate. • The Property Tax levy does not include the potential annual increase allowed by Initiative #747 which was approved by the voters in November 2001 and the subsequent action by the State Legislature in November 2007. o The 2021 levy is estimated at $12,724,200. o The levy assumes we start with the 2020 levy of $12,399,226, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $325,000. • Franchise fees and business registrations are primarily based on projected receipts in 2020. • State shared revenues are based upon a combination of historical collections including 2020 collections through July, and per capita distribution figures reported by the Municipal Research and Services Center. • Fines and forfeitures are estimated by Spokane Valley and based on historical collections. • Building permit and land use fees are estimated by Spokane Valley and based on historic collections. 2021 General Fund Expenditures • Total 2021 recurring expenditures are budgeted at $45,101,466 as compared to $42,898,125 in 2020. This is an increase of $2,203,341 or 5.14%. The 2021 amount is $1,879,480 or 4.35% greater than the original adopted 2020 budget amount which was amended down due to the effects of the COVID-19 pandemic on the economy. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $2,646,400 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($2,646,400 / $45,101,466 = 6%). The $2,646,400 that is transferred to Pavement Preservation Fund #311 is comprised of the following: o $991,843 from General Fund #001 25 o $827,278 from REET 1 Capital Projects Fund #301 o $827,279 from REET 2 Capital Projects Fund #302 • 2021 Nonrecurring expenditures total $2,176,300 and include: o $212,800 for Information Technology expenditures including: ■ $10,000 to replace outdated copiers ■ $159,000 for server upgrades and to replace the card access systems at CenterPlace and the Maintenance Shop ■ $43,800 for software upgrades and Laserfiche workflow o $78,900 for various Public Safety items including: ■ $37,500 for the replacement of handguns (split 50% with the County) ■ $11,400 for a radar trailer ■ $20,000 to replace the access control gate at the Precinct ■ $10,000 to replace the fire panel at the Precinct o $1,859,600 transfer out to the Street O&M Fund #101 to cover the deficit in recurring expenditures exceeding recurring revenues in that fund General Fund Revenues Over (Under) Expenditures and Fund Balance • 2021 recurring revenues are anticipated to exceed recurring expenditures by $324,953. • Total 2021 expenditures are anticipated to exceed total revenues by $2,151,300. • The total unrestricted General Fund ending fund balance is anticipated to be $33,036,464 at the end of 2021 which is 73.25% of total recurring expenditures of $45,101,466. Our goal is to maintain an ending fund balance of at least 50.0%. Highlights of Other Funds Revenues • Motor vehicle fuel tax (MVFT) revenue that is collected by the State and remitted to the City is estimated to be $2,070,700 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,062,000 will be credited to the Street O&M Fund #101 and 0.42% or $8,700 to the Paths and Trails Fund #103. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $1,431,000. • Real estate excise tax (REET) revenue is computed by the City and is primarily used to match grant funded street projects as well as pay a portion of the annual payment on the 2014 general obligation bonds. In 2020 we estimate these revenues to be $1,000,000 per each '/4% for a total of $2,000,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2021 we estimate the tax will generate $559,000, which includes $346,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $213,000 in Fund #104 Hotel / Motel Tax — Tourism Facilities Fund from the 1.3% tax that was effective as of July 1, 2015. • The City began receiving the affordable and supportive housing sales tax in 2020, and will receive these revenues as rebate of the State's sales taxes for 20 years. The amount received by the City is capped at 0.0146% of the taxable retail sales within the City for fiscal year 2019, and the revenues may only be used to support affordable housing or rental assistance within the City as outlined in RCW 82.14.540. These revenues are estimated at $193,000 in 2021 in the Affordable & Supportive Housing Sales Tax Fund #108. • The Stormwater Management Fee is based on an equivalent residential unit (ERU) that is equal to 3,160 square feet of impervious surface that is billed at a rate of $21 per single family residence and $21 per ERU for commercial properties (an ERU for a commercial property is 26 computed as total square feet of impervious surface divided by 3,160). In 2021 we estimate this will fee will generate $1,900,000. • The Aquifer Protection Area Fund is expected to generate $460,000 in fees that are collected on the City's behalf by Spokane County and remitted in two installments during the year. • Grant revenues that will be applied to a variety of construction projects are estimated at $21,079,702 in 2021. By fund we anticipate grant revenues as follows: o Fund #001 — General Fund - $25,000 o Fund #303 — Street Capital Projects - $6,843,308 o Fund #309 — Parks Capital Projects - $480,530 o Fund #314 — Railroad Grade Separation Projects Fund - $11,508,819 o Fund #402 — Stormwater Fund - $100,000 o Fund #403 — Aquifer Protection Area Fund - $2,122,045 Expenditures • Fund #101 — Street Fund appropriations include: o $5,567,200 for maintenance of City streets, including $751,652 in snow operations and $935,000 in intergovernmental payments for services. • Fund #106 — Solid Waste Fund appropriations include: o a $1,500,000 transfer out to the Pavement Preservation Fund #311 for street preservation activities • Fund #301 — REET 1 Capital Proiects Fund includes a $1,224,673 appropriation to cover: o a $80,775 transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a $316,620 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $827,278 transfer to Pavement Preservation Fund #311 for pavement preservation projects. • Fund #302 — REET 2 Capital Proiects Fund includes a $3,698,125 appropriation to cover: o a $80,775 transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a $1,662,684 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $827,279 transfer to Pavement Preservation Fund #311 for pavement preservation projects o a $1,127,387 transfer to Railroad Grade Separation Projects Fund #314 for the Barker Road Grade Separation Project. • Fund #303 — Street Capital Proiects Fund includes an appropriation of $8,876,315 for a variety of street construction projects. • Fund #309 — Parks Capital Proiects includes a $1,120,305 appropriation to cover a variety of City park improvements that will be financed through a combination of a $160,000 transfer from the General Fund #001, a $656,150 transfer in from the Capital Reserve Fund #312, and $480,530 in grant proceeds. 27 • Fund #311 — Pavement Preservation includes $4,676,350 of pavement preservation projects that will be financed through transfers from other City funds as outlined above under the heading of General Fund Recurring Expenditures. • Fund #312 — Capital Reserve includes $565,150 in transfers to Fund #309 — Parks Capital Projects that will be applied toward frontage improvements at Balfour Park. It also includes $725,774 in transfers to Fund #314 — Grade Separation Projects for Barker, Pines, and Sullivan Roads and $759,600 in park land acquisitions. • Fund #314 — Railroad Grade Separation Projects includes appropriations in the amount of $13,796,320 towards the Barker Road Grade Separation project, the Pines Road Grade Separation project, and the Sullivan Road Interchange project. • Fund #402 — Stormwater Fund includes $700,000 for nonrecurring expenditures including: o $500,000 for various capital projects o $100,000 for the studies related to the City's Stormwater permit and the watershed o $100,000 for an update to the Stormwater Comprehensive Plan • Fund #403 — Aquifer Protection Area Fund includes a $2,378,109 appropriation to various capital projects. 28 CITY OF SPOKANE VALLEY, WA 2021 Budget Summary Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 Street Fund 101 Paths & Trails Fund 103 Hotel/Motel Tax - Tourism Facilities Fund 104 Hotel/Motel Tax Fund 105 Solid Waste 106 PEG Fund 107 Affordable & Supportive Housing Sales Ta) 108 CenterPlace Operating Reserve Fund 120 Service Level Stabilization Fund 121 Winter Weather Reserve Fund 122 LTGO Bond Debt Service Fund 204 REET 1 Capital Projects Fund 301 REET 2 Capital Projects Fund 302 Street Capital Projects 303 Park Capital Projects Fund 309 Civic Facilities Capital Projects Fund 310 Pavement Preservation Fund 311 Capital Reserve Fund 312 Railroad Grade Separation Projects Fund 314 34,862,811 556,265 23,115 2,927,945 521,240 526,650 122,255 144,750 300,000 5,500,000 528,736 0 1,238,567 4,055,658 67,402 20,362 856,285 4,209,098 7,753,610 765,548 45,451,419 5,567,200 8,900 237,000 352,000 1,737,000 79,000 193,000 0 0 1,900 1,043,850 1,025,000 1,025,000 8,876,315 1,205,680 3,100 4,146,400 100,000 13,361,980 80,314,230 6,123,465 32,015 3,164,945 873,240 2,263,650 201,255 337,750 300,000 5,500,000 530,636 1,043,850 2,263,567 5,080,658 8,943,717 1,226,042 859,385 8,355,498 7,853,610 14,127,528 47,277,766 5,567,200 0 0 710,000 1,737,000 73,000 0 0 0 500,000 1,043,850 1,224,673 3,698,125 8,876,315 1,120,305 0 4,726,350 2,050,524 13,796,320 33,036,464 556,265 32,015 3,164,945 163,240 526,650 128,255 337,750 300,000 5,500,000 30,636 0 1,038,894 1,382,533 67,402 105,737 859,385 3,629,148 5,803,086 331,208 64,980,297 84,414,744 149,395,041 92,401,428 56,993,613 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,616,616 2,040,000 3,656,616 2,626,007 1,030,609 Aquifer Protection Area Fund 403 1,911,428 2,597,045 4,508,473 2,378,109 2,130,364 Equipment Rental & Replacement Fund 501 1,401,693 155,400 1,557,093 140,000 1,417,093 Risk Management Fund 502 276,004 425,000 701,004 425,000 276,004 Total of all Funds 5,205,741 70,186,038 5,217,445 89,632,189 10,423,186 159,818,227 5,569,116 97,970,544 4,854,070 61,847,683 29 CITY OF SPOKANE VALLEY, WA 2021 Budget #001 - GENERAL FUND RECURRING ACTIVITY Revenues Property Tax Sales Tax Sales Tax - Public Safety Sales Tax - Criminal Justice Gambling Tax and Leasehold Excise Tax Franchise Fees/Business Registration State Shared Revenues Fines and Forfeitures/Public Safety Community and Public Works Recreation Program Revenues Miscellaneous Department Revenue Miscellaneous & Investment Interest Transfers in - #105 (h/m tax-CP advertising) 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 12,432,400 0 12,432,400 12,724,200 291,800 2.35% 24,632,900 (2,848,900) 21,784,000 22,220,000 436,000 2.00% 1,162,600 (128,600) 1,034,000 1,054,800 20,800 2.01% 2,052,300 (226,300) 1,826,000 1,862,400 36,400 1.99% 384,000 (90,000) 294,000 384,000 90,000 30.61 % 1,220,000 0 1,220,000 1,215,000 (5,000) (0.41%) 1,688,200 0 1,688,200 1,760,000 71,800 4.25% 1,077,700 0 1,077,700 1,010,200 (67,500) (6.26%) 2,129,800 0 2,129,800 1,908,719 (221,081) (10.38%) 659,200 (539,700) 119,500 643,600 524,100 438.58% 21,000 0 21,000 21,000 0 0.00% 791,700 0 791,700 592,500 (199,200) (25.16%) 30,000 0 30,000 30,000 0 0.00% Total Recurring Revenues 48,281,800 (3,833,500) 44,448,300 45,426,419 Expenditures City Council 622,187 0 622,187 631,566 9,379 1.51% City Manager 997,882 33,300 1,031,182 1,158,089 126,907 12.31% City Attorney 707,942 0 707,942 718,593 10,651 1.50% Public Safety 26,599,214 274,489 26,873,703 28,101,615 1,227,912 4.57% Deputy City Manager 277,187 0 277,187 284,844 7,657 2.76% Finance / IT 1,478,523 0 1,478,523 1,500,659 22,136 1.50% Human Resources 313,316 0 313,316 318,540 5,224 1.67% City Hall Operations and Maintenance 296,270 0 296,270 301,093 4,823 1.63% Community & Public Works - Engineering 1,971,731 (16,650) 1,955,081 2,098,642 143,561 7.34% Community & Public Works - Economic Dev 1,119,829 0 1,119,829 1,045,762 (74,067) (6.61%) Community & Public Works - Building & Planning 2,420,414 0 2,420,414 2,487,066 66,652 2.75% Parks & Rec - Administration 352,227 (15,000) 337,227 356,467 19,240 5.71% Parks & Rec - Maintenance 917,500 0 917,500 940,003 22,503 2.45% Parks & Rec - Recreation 325,921 (83,000) 242,921 328,534 85,613 35.24% Parks & Rec - Aquatics 501,853 (369,000) 132,853 510,053 377,200 283.92% Parks & Rec - Senior Center 43,447 0 43,447 35,403 (8,044) (18.51 %) Parks & Rec - CenterPlace 965,359 (148,000) 817,359 972,214 154,855 18.95% General Government 1,321,111 0 1,321,111 1,297,380 (23,731) (1.80%) Transfers out - #204 (2016 LTGO debt service) 401,450 0 401,450 401,500 50 0.01 % Transfers out - #309 (park capital projects) 160,000 0 160,000 160,000 0 0.00% Transfers out - #311 (pavement preservation) 982,023 0 982,023 991,843 9,820 1.00% Transfers out - #501 (CenterPlace kitchen reserve) 36,600 0 36,600 36,600 0 0.00% Transfers out - #502 (insurance premium) 410,000 0 410,000 425,000 15,000 3.66% 978,119 2.20% Total Recurring Expenditures 43,221,986 (323,861) 42,898,125 45,101,466 2,203,341 5.14% Recurring Revenues Over (Under) Recurring Expenditures 5,059,814 (3,509,639) 1,550,175 324,953 30 CITY OF SPOKANE VALLEY, WA 2021 Budget #001 - GENERAL FUND - continued NONRECURRING ACTIVITY Revenues Grant Proceeds Reimbursement of chamber wall repairs Miscellaneous Total Nonrecurring Revenues Expenditures General Government - IT capital replacements 190,000 0 190,000 212,800 22,800 12.00% City Manager (office furniture for Housing Sery employee) 0 5,000 5,000 0 (5,000) (100.00%) Public Safety (full facility generator) 0 58,310 58,310 0 (58,310) (100.00%) Public Safety (carpet & workstation replacement) 15,000 0 15,000 0 (15,000) (100.00%) Public Safety (replace HVAC units at Precinct) 0 60,000 60,000 0 (60,000) (100.00%) Public Safety (replace handguns) 0 0 0 37,500 37,500 0.00% Public Safety (radar trailer) 0 0 0 11,400 11,400 0.00% Public Safety (Precinct access control gate) 0 0 0 20,000 20,000 0.00% Public Safety (Precinct fire panel replacement) 0 0 0 10,000 10,000 0.00% City Hall chamber east wall repairs 0 500,000 500,000 0 (500,000) (100.00%) Economic Dev (CERB Appleway Trail Study) 0 25,000 25,000 0 (25,000) (100.00%) Economic Dev (Commerce Housing Action Plan) 0 100,000 100,000 0 (100,000) (100.00%) Economic Dev (Ecology SMP Update) 0 3,000 3,000 25,000 22,000 733.33% Building (equipment for new Code Enf. Officer) 13,700 0 13,700 0 (13,700) (100.00%) Parks & Rec (carpet at CenterPlace) 9,500 0 9,500 0 (9,500) (100.00%) General Government (City Hall generator) 0 44,993 44,993 0 (44,993) (100.00%) COVID-19 related expenditures 0 4,352,400 4,352,400 0 (4,352,400) (100.00%) Transfers out - #101 (Street Fund operations) 0 350,200 350,200 1,859,600 1,509,400 431.01% Transfers out - #122 (replenish reserve) 0 500,000 500,000 0 (500,000) (100.00%) Transfers out - #309 (Browns Park 2019 lmpr) 0 121,298 121,298 0 (121,298) (100.00%) Transfers out - #309 (CenterPlace west lawn) 1,500,000 401,581 1,901,581 0 (1,901,581) (100.00%) Transfers out - #309 (CenterPlace roof repairs) 0 810,000 810,000 0 (810,000) (100.00%) Transfers out - #309 (Browns Park 2020 lmpr) 0 75,000 75,000 0 (75,000) (100.00%) Transfers out - #501 (new Code Enf. Vehicle) 30,000 0 30,000 0 (30,000) (100.00%) 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 70,000 4,480,400 4,550,400 25,000 (4,525,400) (99.45%) 0 500,000 500,000 0 (500,000) (100.00%) 0 0 0 0 0 0.00% 70,000 4,980,400 5,050,400 25,000 (5,025,400) (99.50%) Total Nonrecurring Expenditures 1,758,200 7,406,782 9,164,982 2,176,300 (6,988,682) (76.25%) Nonrecurring Revenues Over (Under) Nonrecurring Expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning unrestricted fund balance Ending unrestricted fund balance Fund balance as a percent of recurring expenditures General Fund Summary Total revenues Total expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning unrestricted fund balance Ending unrestricted fund balance (1,688,200) (2,426,382) (4,114,582) (2,151,300) 3,371,614 (5,936,021) (2,564,407) (1,826,347) 37,427,218 37,427,218 34,862,811 40,798,832 34,862,811 33,036,464 94.39% 81.27% 73.25% 48,351,800 1,146,900 49,498,700 45,451,419 44,980,186 7,082,921 52,063,107 47,277,766 3,371,614 (5,936,021) (2,564,407) (1,826,347) 37,427,218 37,427,218 34,862,811 40,798,832 34,862,811 33,036,464 31 CITY OF SPOKANE VALLEY, WA 2021 Budget SPECIAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY Revenues Utility Tax Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Miscellaneous 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 1,521,000 0 1,521,000 1,431,000 (90,000) (5.92%) 2,046,700 (331,700) 1,715,000 2,062,000 347,000 20.23% 131,500 (18,500) 113,000 130,600 17,600 15.58% 70,000 0 70,000 70,000 0 0.00% 17,000 0 17,000 4,000 (13,000) (76.47%) 10,000 0 10,000 10,000 0 0.00% Total Recurring Revenues 3,796,200 (350,200) 3,446,000 3,707,600 261,600 7.59% Expenditures Wages / Benefits / Payroll Taxes 1,059,613 0 1,059,613 1,127,920 68,307 6.45% Supplies 146,050 0 146,050 156,050 10,000 6.85% Services & Charges 2,426,467 0 2,426,467 2,525,828 99,361 4.09% Snow Operations 543,776 0 543,776 751,652 207,876 38.23% Intergovernmental Payments 922,000 0 922,000 935,000 13,000 1.41% Vehicle rentals - #501 (non -plow vehicle rental) 14,500 0 14,500 10,250 (4,250) (29.31 %) Vehicle rentals - #501 (plow replace.) 48,500 0 48,500 60,500 12,000 24.74% Total Recurring Expenditures 5,160,906 0 5,160,906 5,567,200 406,294 7.87% Recurring Revenues Over (Under) Recurring Expenditures (1,364,706) (350,200) (1,714,906) (1,859,600) NONRECURRING ACTIVITY Revenues Transfers in -#001 0 350,200 350,200 1,859,600 1,509,400 431.01% Transfers in -#312 1,364,706 0 1,364,706 0 (1,364,706) (100.00%) Total Nonrecurring Revenues 1,364,706 350,200 1,714,906 1,859,600 144,694 8.44% Expenditures Spare traffic signal equipment 0 0 0 0 0 0.00% Total Nonrecurring Expenditures 0 0 0 0 0 0.00% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures 1,364,706 350,200 1,714,906 1,859,600 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning fund balance 556,265 556,265 556,265 Ending fund balance 556,265 556,265 556,265 0 0 0 0 Street Fund Summary Total revenues Total expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning unrestricted fund balance Ending unrestricted fund balance 5,160, 906 5,160, 906 5,160,906 5,567,200 5,160,906 5,567,200 0 0 0 0 556,265 556,265 556,265 556,265 556,265 556,265 32 CITY OF SPOKANE VALLEY, WA 2021 Budget SPECIAL REVENUE FUNDS - continued #103 - PATHS & TRAILS FUND Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest Total revenues Expenditures Transfers out - #309 Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 2020 As As Adopted Amendment Amended 2021 Budget 8,600 0 8,600 8,700 10/13/2020 Difference Between 2020 and 2021 $ I OA 100 1.16% 400 0 400 200 (200) (50.00%) 9,000 0 9,000 8,900 (100) (1.11%) 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 9,000 14,115 23,115 9,000 8,900 14,115 23,115 23,115 32,015 #104 - HOTEL / MOTEL TAX - TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 420,000 (207,000) 213,000 213,000 0 0.00% Investment Interest 24,000 0 24,000 24,000 0 0.00% Transfers in - #105 0 0 0 0 0 0.00% Total revenues 444,000 (207,000) 237,000 237,000 0 0.00% Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 444,000 237,000 237,000 Beginning fund balance 2,690,945 2,690,945 2,927,945 Ending fund balance 3,134,945 2,927,945 3,164,945 #105 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax 650,000 (304,000) 346,000 346,000 0 0.00% Investment Interest 6,000 0 6,000 6,000 0 0.00% Total revenues 656,000 (304,000) 352,000 352,000 0 0.00% Expenditures Transfers out - #001 30,000 0 30,000 30,000 0 0.00% Transfers out - #104 0 0 0 0 0 0.00% Tourism Promotion 795,000 (476,000) 319,000 680,000 361,000 113.17% Total expenditures 825,000 (476,000) 349,000 710,000 361,000 103.44% Revenues over (under) expenditures (169,000) 3,000 (358,000) Beginning fund balance 518,240 518,240 521,240 Ending fund balance 349,240 521,240 163,240 #106 - SOLID WASTE FUND Revenues Solid Waste Administrative Fee 225,000 0 225,000 225,000 0 0.00% Solid Waste Road Wear Fee 1,500,000 0 1,500,000 1,500,000 0 0.00% Investment Interest 12,000 0 12,000 12,000 0 0.00% Total revenues 1,737,000 0 1,737,000 1,737,000 0 0.00% Expenditures Education & Contract Administration 237,000 0 237,000 237,000 0 0.00% Transfers out - #311 1,500,000 13,532 1,513,532 1,500,000 (13,532) (0.89%) Total expenditures 1,737,000 13,532 1,750,532 1,737,000 (13,532) (0.77%) Revenues over (under) expenditures 0 (13,532) 0 Beginning fund balance 540,182 540,182 526,650 Ending fund balance 540,182 526,650 526,650 33 CITY OF SPOKANE VALLEY, WA 2021 Budget SPECIAL REVENUE FUNDS - continued #107 - PEG FUND Revenues Comcast PEG Contribution Total revenues Expenditures PEG Reimbursement - CMTV Capital Outlay Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 2020 As As Adopted Amendment Amended 79,000 2021 Budget 0 79,000 79,000 10/13/2020 Difference Between 2020 and 2021 $ I OA 0 0.00% 79,000 0 79,000 79,000 0 0.00% 39,500 0 39,500 39,500 0 0.00% 45,500 0 45,500 33,500 (12,000) (26.37%) 85,000 0 85,000 73,000 (12,000) (14.12%) (6,000) 128,255 122,255 (6,000) 6,000 128,255 122,255 122,255 128,255 #108 -AFFORDABLE & SUPPORTIVE HOUSING SALES TAX Revenues Affordable & Supportive Housing Sales Tax 0 144,750 144,750 193,000 48,250 33.33% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 144,750 144,750 193,000 48,250 33.33% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 0 144,750 193,000 Beginning fund balance 0 0 144,750 Ending fund balance 0 144,750 337,750 #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 Beginning fund balance 5,500,000 5,500,000 5,500,000 Ending fund balance 5,500,000 5,500,000 5,500,000 #122 - WINTER WEATHER RESERVE FUND Revenues Investment Interest 5,400 0 5,400 1,900 (3,500) (64.81%) Transfers in - #001 0 500,000 500,000 0 (500,000) (100.00%) Subtotal revenues Expenditures Street maintenance expenditures Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 5,400 500,000 505,400 1,900 (503,500) (99.62%) 500,000 0 500,000 500,000 0 0.00% 500,000 0 500,000 500,000 0 0.00% (494,600) 23,336 (471,264) 5,400 (498,100) 23,336 528,736 28,736 30,636 34 CITY OF SPOKANE VALLEY, WA 2021 Budget DEBT SERVICE FUNDS #204 - LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District Transfers in - #001 Transfers in - #301 Transfers in - #302 Total revenues 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 459,500 0 459,500 480,800 21,300 4.64% 401,450 0 401,450 401,500 50 0.01% 80,375 0 80,375 80,775 400 0.50% 80,375 0 80,375 80,775 400 0.50% 1,021,700 0 1,021,700 1,043,850 22,150 2.17% Expenditures Debt Service Payments - CenterPlace 459,500 0 459,500 480,800 21,300 4.64% Debt Service Payments - Roads 160,750 0 160,750 161,550 800 0.50% 2016 LTGO Bond Principal & Interest 401,450 0 401,450 401,500 50 0.01% Total expenditures 1,021,700 0 1,021,700 1,043,850 22,150 2.17% Revenues over (under) expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 35 CITY OF SPOKANE VALLEY, WA 2021 Budget CAPITAL PROJECTS FUNDS #301 - REET 1 CAPITAL PROJECTS FUND Revenues REET 1 - Taxes Investment Interest Total revenues 2020 As As Adopted Amendment Amended 1,000,000 35,000 O 1,000,000 O 35,000 1,035,000 2021 Budget 1,000,000 25,000 O 1,035,000 1,025,000 10/13/2020 Difference Between 2020 and 2021 $ I OA 0 0.00% (10,000) (28.57%) (10,000) (0.97%) Expenditures Transfers out - #204 80,375 0 80,375 80,775 400 0.50% Transfers out - #303 1,089,148 (216,543) 872,605 316,620 (555,985) (63.72%) Transfers out - #311 (pavement preservation) 772,639 0 772,639 827,278 54,639 7.07% Transfers out - #314 (Barker Grade Separation) 49,041 819,967 869,008 0 (869,008) (100.00%) Total expenditures 1,991,203 603,424 2,594,627 1,224,673 (1,369,954) (52.80%) Revenues over (under) expenditures (956,203) (1,559,627) (199,673) Beginning fund balance 2,798,194 2,798,194 1,238,567 Ending fund balance 1,841,991 1,238,567 1,038,894 #302 - REET 2 CAPITAL PROJECTS FUND Revenues REET 2 - Taxes Investment Interest 1,000,000 35,000 O 1,000,000 O 35,000 1,000,000 25,000 0 0.00% (10,000) (28.57%) Total revenues 1,035,000 0 1,035,000 1,025,000 (10,000) (0.97%) Expenditures Transfers out - #204 80,375 0 80,375 80,775 400 0.50% Transfers out - #303 404,318 113,881 518,199 1,662,684 1,144,485 220.86% Transfers out - #311 (pavement preservation) 772,638 0 772,638 827,279 54,641 7.07% Transfers out-#314 0 0 0 1,127,387 1,127,387 0.00% Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 1,257,331 113,881 1,371,212 3,698,125 (222,331) 4,391,870 4,169,539 (336,212) (2,673,125) 4,391,870 4,055,658 4,055,658 1,382,533 2,326,913 169.70% 36 CITY OF SPOKANE VALLEY, WA 2021 Budget CAPITAL PROJECTS FUNDS - continued #303 - STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds Developer Transfers in - #301 Transfers in - #302 Transfers in - #312 - Barker Corridor Transfers in - #312 - Garland Ave Total revenues 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 6,596,718 (656,213) 5,940,505 6,843,308 902,803 15.20% 110,499 1,200,560 1,311,059 53,703 (1,257,356) (95.90%) 1,089,148 (216,543) 872,605 316,620 (555,985) (63.72%) 404,318 113,881 518,199 1,662,684 1,144,485 220.86% 39,512 455,779 495,291 0 (495,291) (100.00%) 75,000 1,211,436 1,286,436 0 (1,286,436) (100.00%) 8,315,195 2,108,900 10,424,095 8,876,315 (1,547,780) (14.85%) Expenditures 205 Sprague/Barker Intersections Improvement 195,499 0 195,499 329,453 133,954 68.52% 249 Sullivan/Wellesley Intersection 100,000 50,000 150,000 1,020,522 870,522 580.35% 259 N. Sullivan Corridor ITS Project 810,232 111,117 921,349 0 (921,349) (100.00%) 267 Mission Ave Sidewalk 19,852 116,223 136,075 11,310 (124,765) (91.69%) 273 Barker/I-90 Interchange 90,000 478,655 568,655 0 (568,655) (100.00%) 275 Barker Rd Widening - River to Euclid 3,729,143 (1,750,748) 1,978,395 1,132,320 (846,075) (42.77%) 276 Barker Rd Widening - Euclid to Garland 0 380,269 380,269 0 (380,269) (100.00%) 285 Indiana Ave Pres - Evergreen to Sullivan 300,000 54,060 354,060 7,210 (346,850) (97.96%) 291 Adams Sidewalk Infill 444,645 0 444,645 0 (444,645) (100.00%) 293 2018 CSS Citywide Reflective Signal BP 99,000 0 99,000 74,250 (24,750) (25.00%) 294 Citywide Reflective Signal Post Panels 47,775 0 47,775 17,875 (29,900) (62.59%) 295 Garland Ave Construction 150,000 2,342,371 2,492,371 0 (2,492,371) (100.00%) 299 Argonne Rd Concrete Pvmt Indiana to Mont 32,000 0 32,000 2,392,450 2,360,450 7376.41 % 300 Pines and Mission Intersection Improvement 516,000 0 516,000 498,000 (18,000) (3.49%) 301 Park and Mission Intersection Improvements 0 152,992 152,992 693,000 540,008 352.96% 302 Ella Sidewalk - Broadway to Alki 371,760 0 371,760 0 (371,760) (100.00%) 303 S. Conklin Sidewalk 124,125 0 124,125 0 (124,125) (100.00%) 310 Sullivan Rd Overcrossing UP RR Deck Repl 0 337,625 337,625 317,625 (20,000) (5.92%) 313 Barker Rd/Union Pacific Crossing 0 121,500 121,500 1,312,500 1,191,000 980.25% 318 Wilbur Sidewalk - Boone to Mission 0 0 0 50,000 50,000 0.00% 320 Sullivan Preservation - Sprague to 8th 0 0 0 19,800 19,800 0.00% 069 Park Rd Reconstruction #2 (Repay Grant Funds) 285,164 (285,164) 0 0 0 0.00% Contingency 1,000,000 0 1,000,000 1,000,000 0 0.00% Total expenditures 8,315,195 2,108,900 10,424,095 8,876,315 (1,547,780) (14.85%) Revenues over (under) expenditures 0 0 0 Beginning fund balance 67,402 67,402 67,402 Ending fund balance 67,402 67,402 67,402 Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that were bid with the pavement preservation work. 37 CITY OF SPOKANE VALLEY, WA 2021 Budget CAPITAL PROJECTS FUNDS - continued #309 - PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds Transfers in - #001 Transfers in - #312 Total revenues 2020 As As Adopted Amendment Amended 2,500 1,660,000 7,500 1,603,083 1,332,879 111,873 1,605,583 2,992,879 119,373 2021 Budget 480,530 160,000 565,150 10/13/2020 Difference Between 2020 and 2021 $ I OA (1,125,053) (2,832,879) 445,777 (70.07%) (94.65%) 373.43% 1,670,000 3,047,835 4,717,835 1,205,680 (3,512,155) (74.44%) Expenditures 268 Appleway Trail (Evergreen to Sullivan) 5,000 1,604,376 1,609,376 0 (1,609,376) (100.00%) 296 Browns Park improvements 2019 5,000 116,298 121,298 0 (121,298) (100.00%) 304 CenterPlace west lawn improvements - Ph. 2 1,500,000 401,581 1,901,581 0 (1,901,581) (100.00%) 305 CenterPlace roof repairs 0 810,000 810,000 0 (810,000) (100.00%) 314 Balfour Park frontage improvements 0 59,850 59,850 565,150 505,300 844.28% 315 Browns Park improvements 2020 0 62,995 62,995 499,805 436,810 693.40% 316 Balfour Park improvements - Ph 1 0 11,000 11,000 0 (11,000) (100.00%) Install stage fill speakers Great Room 0 0 0 6,346 6,346 0.00% Repair failed pixels Great Room 0 0 0 6,505 6,505 0.00% Reprogram Great Room AN System 0 0 0 12,499 12,499 0.00% Repair/replace siding at Mirabeau restroom 0 0 0 30,000 30,000 0.00% Transfers out - #312 (park land acquisition) 0 200,000 200,000 0 (200,000) (100.00%) Total expenditures 1,510,000 3,266,100 4,776,100 1,120,305 (3,655,795) (76.54%) Revenues over (under) expenditures 160,000 (58,265) 85,375 Beginning fund balance 78,627 78,627 20,362 Ending fund balance 238,627 20,362 105,737 #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 17,000 0 17,000 3,100 (13,900) (81.76%) Total revenues 17,000 0 17,000 3,100 (13,900) (81.76%) Expenditures Transfers out - #312 0 16,700 16,700 0 (16,700) (100.00%) Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 0 16,700 16,700 0 (16,700) (100.00%) 17,000 855,985 872,985 300 3,100 855,985 856,285 856,285 859,385 Note: The fund balance in #310 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 2022 then the City may repurchase this land at the original sale price of $839,285.10. #311 - PAVEMENT PRESERVATION Revenues Transfers in - #001 982,023 0 982,023 991,843 9,820 1.00% Transfers in-#106 1,500,000 13,532 1,513,532 1,500,000 (13,532) (0.89%) Transfers in - #301 772,639 0 772,639 827,278 54,639 7.07% Transfers in - #302 772,638 0 772,638 827,279 54,641 7.07% Grant Proceeds 10,588 0 10,588 0 (10,588) (100.00%) Total revenues Expenditures Pavement preservation Pre -project GeoTech Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 4,037,888 13,532 4,051,420 4,146,400 4,217,523 50,000 0 4,217,523 0 50,000 4,676,350 50,000 4,267,523 0 4,267,523 4,726,350 (229,635) (216,103) (579,950) 4,425,201 4,425,201 4,209,098 4,195, 566 4,209,098 3,629,148 94,980 2.34% 458,827 10.88% 0 0.00% 458,827 10.75% 38 CITY OF SPOKANE VALLEY, WA 2021 Budget CAPITAL PROJECTS FUNDS - continued #312 - CAPITAL RESERVE FUND Revenues Transfers in - #309 Transfers in - #310 Investment Interest Total revenues 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 0 200,000 200,000 0 (200,000) (100.00%) 0 16,700 16,700 0 (16,700) (100.00%) 100,000 0 100,000 100,000 0 0.00% 100,000 216,700 316,700 100,000 (216,700) (68.42%) Expenditures Transfers out - #101 1,364,706 0 1,364,706 0 (1,364,706) (100.00%) Transfers out - #303 (Barker Road Corridor) 39,512 455,779 495,291 0 (495,291) (100.00%) Transfers out-#303 (Garland Ave.) 75,000 1,211,436 1,286,436 0 (1,286,436) (100.00%) Transfers out - #309 (Appleway Trail - Evergreen-Sullivat 7,500 41,023 48,523 0 (48,523) (100.00%) Transfers out - #309 (Balfour Park frontage improvement. 0 59,850 59,850 565,150 505,300 844.28% Transfers out-#309 (Balfour Park improvements ph 1) 0 11,000 11,000 0 (11,000) (100.00%) Transfers out - #314 (Pines Rd Underpass) 64,192 3,308 67,500 64,192 (3,308) (4.90%) Transfers out - #314 (Barker Rd Overpass) 0 0 0 411,582 411,582 0.00% Transfers out - #314 (Sullivan Rd Interchange) 0 75,000 75,000 250,000 175,000 233.33% WSDOT Sullivan Park Property Acquisition 0 0 0 759,600 759,600 0.00% WSDOT Flora Park Property Acquisition 0 2,091,600 2,091,600 0 (2,091,600) (100.00%) Total expenditures 1,550,910 3,948,996 5,499,906 2,050,524 (3,449,382) (62.72%) Revenues over (under) expenditures (1,450,910) (5,183,206) (1,950,524) Beginning fund balance 12,936,816 12,936,816 7,753,610 Ending fund balance 11,485,906 7,753,610 5,803,086 #314 - RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 12,808,751 (9,282,373) 3,526,378 11,508,819 7,982,441 226.36% Transfers in - #301 49,041 819,967 869,008 0 (869,008) (100.00%) Transfers in-#302 0 0 0 1,127,387 1,127,387 0.00% Transfers in - #312 64,192 78,308 142,500 725,774 583,274 409.32% Total revenues 12,921,984 (8,384,098) 4,537,886 13,361,980 8,824,094 194.45% Expenditures 143 Barker BNSF Grade Separation 11,475,292 (8,069,316) 3,405,976 9,396,870 5,990,894 175.89% 223 Pines Rd Underpass 1,562,500 (262,500) 1,300,000 4,149,450 2,849,450 219.19% 311 Sullivan Rd Interchange 0 75,000 75,000 250,000 175,000 233.33% Total expenditures 13,037,792 (8,256,816) 4,780,976 13,796,320 9,015,344 188.57% Revenues over (under) expenditures (115,808) (243,090) (434,340) Beginning fund balance 1,008,638 1,008,638 765,548 Ending fund balance 892,830 765,548 331,208 39 CITY OF SPOKANE VALLEY, WA 2021 Budget ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees Investment Interest 2020 As As Adopted Amendment Amended 1,900,000 40,000 O 1,900,000 O 40,000 2021 Budget 1,900,000 40,000 10/13/2020 Difference Between 2020 and 2021 $ I OA 0 0.00% 0 0.00% Total Recurring Revenues 1,940,000 0 1,940,000 1,940,000 0 0.00% Expenditures Wages / Benefits / Payroll Taxes 519,582 0 519,582 538,864 19,282 3.71% Supplies 14,750 0 14,750 14,750 0 0.00% Services & Charges 1,298,153 0 1,298,153 1,320,643 22,490 1.73% Intergovernmental Payments 37,500 0 37,500 45,000 7,500 20.00% Vehicle rentals - #501 14,000 0 14,000 6,750 (7,250) (51.79%) Total Recurring Expenditures 1,883,985 0 1,883,985 1,926,007 42,022 2.23% Recurring Revenues Over (Under) Recurring Expenditures 56,015 0 56,015 13,993 NONRECURRING ACTIVITY Revenues Grant Proceeds 59,828 0 59,828 100,000 40,172 67.15% Total Nonrecurring Revenues 59,828 0 59,828 100,000 40,172 67.15% Expenditures Capital - various projects 500,000 0 500,000 500,000 0 0.00% Watershed studies 80,000 0 80,000 100,000 20,000 25.00% Stormwater Comprehensive Plan Update 100,000 0 100,000 100,000 0 0.00% Total Nonrecurring Expenditures 680,000 0 680,000 700,000 20,000 2.94% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (620,172) 0 (620,172) (600,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (564,157) 0 (564,157) (586,007) Beginning working capital 2,180,773 2,180,773 1,616,616 Ending working capital 1,616,616 1,616,616 1,030,609 Stormwater Fund Summary Total revenues Total expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning unrestricted fund balance Ending unrestricted fund balance 2,180, 773 1,616,616 1,999,828 2,563,985 0 1,999,828 O 2,563,985 2,040,000 2,626,007 (564,157) 0 (564,157) (586, 007) 2,180, 773 1,616,616 1,616,616 1,030,609 #403 -AQUIFER PROTECTION AREA Revenues Spokane County 460,000 0 460,000 460,000 0 0.00% Grant Proceeds 349,000 97,700 446,700 2,122,045 1,675,345 375.05% Investment Interest 20,000 0 20,000 15,000 (5,000) (25.00%) Total revenues Expenditures Capital - various projects Total expenditures Revenues over (under) expenditures Beginning working capital Ending working capital 829,000 97,700 926,700 2,597,045 500,000 633,571 1,133,571 2,378,109 500,000 633,571 1,133,571 2,378,109 329,000 2,118,299 2,447,299 (206,871) 218,936 2,118,299 1,911,428 1,911,428 2,130,364 1,670,345 180.25% 1,244,538 109.79% 1,244,538 109.79% 40 CITY OF SPOKANE VALLEY, WA 2021 Budget INTERNAL SERVICE FUNDS #501 - ER&R FUND Revenues Vehicle rentals - #001 Vehicle rentals - #101 Vehicle rentals - #101 (plow replace.) Vehicle rentals - #402 Transfer in - #001 (CenterPlace kitchen reserve) Transfer in - #001 (Code Enforcement Vehicle) Investment Interest Total revenues 2020 As As Adopted Amendment Amended 2021 Budget 10/13/2020 Difference Between 2020 and 2021 $ I OA 28,000 0 28,000 31,300 3,300 11.79% 14,500 0 14,500 10,250 (4,250) (29.31%) 48,500 0 48,500 60,500 12,000 24.74% 14,000 0 14,000 6,750 (7,250) (51.79%) 36,600 0 36,600 36,600 0 0.00% 30,000 0 30,000 0 (30,000) (100.00%) 19,000 0 19,000 10,000 (9,000) (47.37%) 190,600 0 190,600 155,400 (35,200) (18.47%) Expenditures Small tools & minor equipment 20,000 0 20,000 10,000 (10,000) (50.00%) Vehicle purchase 30,000 0 30,000 130,000 100,000 333.33% Snow plow purchase 235,000 0 235,000 0 (235,000) (100.00%) Total expenditures 285,000 0 285,000 140,000 (145,000) (50.88%) Revenues over (under) expenditures (94,400) (94,400) 15,400 Beginning working capital 1,496,093 1,496,093 1,401,693 Ending working capital 1,401,693 1,401,693 1,417,093 #502 - RISK MANAGEMENT FUND Revenues Transfers in - #001 410,000 0 410,000 425,000 15,000 3.66% Total revenues 410,000 0 410,000 425,000 15,000 3.66% Expenditures Auto & Property Insurance 410,000 0 410,000 425,000 15,000 3.66% Total expenditures 410,000 0 410,000 425,000 15,000 3.66% Revenues over (under) expenditures 0 0 0 Beginning fund balance 276,004 276,004 276,004 Ending fund balance 276,004 276,004 276,004 TOTAL OF ALL FUNDS Total of Revenues for all Funds Total of Expenditures for all Funds 90,026,301 (1,618,781) 88,407,520 89,632,189 89,998,731 9,055,209 99,053,940 97,970,544 Total grant revenues (included in total revenues) 19,827,385 (3,757,403) 16,139,982 21,079,702 Total Capital expenditures (included in total expenditures) 28,594,710 (2,084,942) 26,509,768 32,554,699 41 CITY OF SPOKANE VALLEY, WA 2021 Budget Revenues by Fund General Fund Property Tax Sales Tax Sales Tax - Public Safety Sales Tax - Criminal Justice Gambling and Leasehold Excise Tax Franchise Fees/Business Registration State Shared Revenues Service Revenues Fines and Forfeitures Recreation Program Fees Miscellaneous, Investment Int., Transfers Total General Fund 12,724,200 22,220,000 1,054,800 1,862,400 384,000 1,215,000 1,760,000 1,908,719 1,010,200 643,600 668,500 $ 45,451,419 Other Funds 101 Street Fund $ 5,567,200 103 Paths & Trails Fund 8,900 104 Hotel/Motel Tax Tourism Facilities Fund 237,000 105 Hotel/Motel Tax Fund 352,000 106 Solid Waste Fund 1,737,000 107 PEG Fund 79,000 108 Affordable & Supportive Housing Sales Tax 193,000 122 Winter Weather Reserve Fund 1,900 204 LTGO Bond Debt Service Fund 1,043,850 301 REET 1 Capital Projects Fund 1,025,000 302 REET 2 Capital Projects Fund 1,025,000 303 Street Capital Projects Fund 8,876,315 309 Parks Capital Projects Fund 1,205,680 310 Civic Facilities Capital Projects Fund 3,100 311 Pavement Preservation Fund 4,146,400 312 Capital Reserve Fund 100,000 314 Railroad Grade Separation Projects Fund 13,361,980 402 Stormwater Management Fund 2,040,000 403 Aquifer Protection Area Fund 2,597,045 501 Equipment Rental & Replacement Fund 155,400 502 Risk Management Fund 425,000 Total Other Funds 44,180,770 Total All Funds $ 89,632,189 42 CITY OF SPOKANE VALLEY, WA 2021 General Fund Revenues $45,451,419 Recreation Program Fees 1% Fines & Forfeitures 2% Service Revenues 4% State Shared Revenues 4% Franchise Fees/Business Registrations 3% Gambling Tax 1% Public Safety Sales Tax 2% Criminal Justice Sales Tax 4% Miscellaneous 2% Property Tax 28% Sales Tax 49% Debt Service Fund Other Special Revenue Funds 3% Street Fund 6% CITY OF SPOKANE VALLEY, WA 2021 City Wide Revenues $ 89,632,189 Capital Projects Funds General Fund 51% 33% Stormwater Management Fund 2% APA Fund 3% Internal Service Funds 1% 44 Property Tax Property Tax Property Tax - Delinquent Sales Taxes Sales Tax Sales Tax - Public Safety Sales Tax - Criminal Justice CITY OF SPOKANE VALLEY, WA 2021 Budget - General Fund Detail Revenues by Type 2017 Actual 2018 Actual 2019 Actual 2020 Amended Budget 2021 Proposed Budget 11,433,071 11,511,773 11,977,663 12,432,400 12, 724,200 179,986 197,138 187,462 0 0 11,613,057 21,089,134 983,025 1,765,040 23,837,199 11,708,911 12,165,125 22,642,855 1,074,037 1,906,001 24,204,763 1,149,040 2,028,789 25,622,893 27,382,592 12, 432,400 12, 724,200 21,784,000 1,034,000 1,826,000 22,220,000 1,054,800 1,862,400 24,644,000 25,137,200 Gambling and Leasehold Excise Tax Amusement Games 14,841 13,456 14,401 10,000 13,000 Card Games 279,611 284,720 326,721 214,000 285,000 Bingo & Raffles 1,060 1,278 2,101 0 1,000 Punch Boards & Pull Tabs 72,292 64,303 76,573 52,000 67,000 Leasehold Excise Tax 11,073 5,469 8,029 7,000 7,000 Leasehold Excise Tax (State) 9,175 11,140 13,790 11,000 11,000 Licenses & Permits General Business Licenses Franchise Fees 388,052 124,006 1,152,203 1,276,209 380,366 441,615 117,917 115,235 1,092,287 1,100,597 1,210,204 1,215,832 294,000 384,000 120,000 115,000 1,100,000 1,100,000 1,220,000 1,215,000 State Shared Revenues City Assistance State Revenue 0 27,311 112,334 0 0 Streamline Mitigation of Sales Tax 550,976 333,140 2,004 0 0 Payment in Lieu of Taxes - DNR 7,738 0 3,630 4,000 4,000 CJ - High Crime 190,802 268,009 263,038 0 0 MVET Criminal Justice - Population 26,834 27,780 29,063 30,000 32,000 CJ Contracted Services 165,647 171,356 179,012 165,000 165,000 CJ Special Programs 98,475 100,300 104,438 108,300 114,000 Marijuana Enforcement 34,147 0 0 0 0 Marijuana Excise Tax Distribution 41,164 259,242 187,547 110,200 109,000 DUI - Cities 14,187 14,004 13,038 14,000 14,000 Liquor Board Excise Tax 458,560 487,739 533,694 531,000 552,000 Liquor Board Profits 794,980 786,251 781,018 725,700 770,000 2,383,510 2,475,132 2,208,816 1,688,200 1,760,000 Service Revenues Accessory Dwelling 588 420 588 300 353 Building & Planning Fees 175,123 77,010 263,991 186,200 158,390 Building Permits 1,327,855 1,414,420 1,508,693 1,130,000 905,216 Code Enforcement 8,198 15,050 10,734 7,000 6,440 Demolition Permits 4,143 4,074 4,553 4,000 2,732 Entertainment License 11,649 0 7,087 0 4,252 Grading Permits 11,610 22,619 26,286 9,000 15,772 Home Profession Fee 5,124 3,192 2,520 3,600 1,512 Mechanical Permits 129,766 146,519 147,879 110,000 88,727 Misc. Permits & Fees 5,967 18,492 23,968 6,000 13,128 Planning Fees 475,409 751,859 909,688 490,000 547,702 Plumbing Permits 62,542 79,097 74,808 62,000 44,885 Right of Way Permits 123,067 204,963 197,026 120,000 118,216 Street Vacation Permits 1,365 0 4,095 1,300 1,300 Temporary Use Permit Fees 471 157 157 400 94 2,342,877 2,737,872 3,182,073 2,129,800 1,908,719 45 CITY OF SPOKANE VALLEY, WA 2021 Budget - General Fund Detail Revenues by Type Fines and Forfeitures Public Safety False Alarm Services Public Safety Grants Fines & Forfeits - Traffic Other Criminal- Non Traffic Fines Recreation Program Charges Activity Fees (To use a recreational facility) Program Fees (To participate in a program) 2017 Actual 5,534 0 421,240 464,056 890,830 467,504 271,566 739,070 2018 Actual 27,134 0 414,647 536,505 2019 Actual 64,845 0 428,191 459,460 978,286 952,496 459,368 526,026 205,289 205,914 664,657 731,940 2020 Amended Budget 100,000 50,000 447,000 480,700 2021 Proposed Budget 75,000 50,000 421,000 464,200 1,077,700 1,010,200 112,331 460,600 7,169 183,000 119,500 643,600 Miscellaneous AWC Health & Wellness 0 949 0 1,000 1,000 Investment Interest 309,826 690,528 916,684 700,000 500,000 Sales Tax Interest 18,315 34,772 46,720 35,000 35,000 Interest on Gambling Tax 271 70 138 500 300 Interest on Liens & Judgments 0 0 187 0 1,000 Police Precinct Rent 37,446 38,244 39,178 39,000 39,000 Police Precinct Maintenance 12,891 14,694 14,717 15,000 15,000 Judgments and Settlements 44,489 0 1,686 0 0 Miscellaneous Revenue & Grant Proceeds 170,760 20,776 28,458 4,571,400 46,000 Copy Charges 595 766 1,520 0 0 SCRAPS pass -through 1,145 1,137 1,172 1,200 1,200 Reimbursement of Chamber wall repairs 0 0 0 500,000 0 595,738 801,936 1,050,460 5,863,100 638,500 Transfers Transfers in - #101 (street admin) 39,700 39,700 0 0 0 Transfers in - #105 (h/m tax-CP advertising) 15,778 26,037 30,000 30,000 30,000 Transfers in - #106 (solid waste repayment) 40,425 40,425 40,422 0 0 Transfers in - #310 498,500 0 0 0 0 Transfers in - #402 (storm admin) 13,400 13,400 0 0 0 Transfers in - #501 77,000 0 0 0 0 Total General Fund Revenue 684,803 119,562 70,422 30,000 30,000 44,751,345 46,699,819 49,401,371 49,498,700 45,451,419 46 101 - Street Fund Utilities tax Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Other Miscellaneous Revenues & Grants Nonrecurring Transfer in - #001 Nonrecurring Transfer in - #122 Nonrecurring Transfer in - #312 CITY OF SPOKANE VALLEY, WA 2021 Budget - Other Funds Detail Revenues by Type 2017 Actual 2018 Actual 2019 Actual 2020 Amended Budget 2021 Proposed Budget 1,982,391 1,854,641 1,563,981 1,521,000 1,431,000 2,032,175 2,063,390 2,018,186 1,715,000 2,062,000 98,994 133,525 132,637 113,000 130,600 136,112 94,571 84,704 70,000 70,000 7,842 17,504 4,022 17,000 4,000 135,826 97,958 23,911 10,000 10,000 O 0 0 350,200 1,859,600 O 0 620,000 0 0 O 0 907,544 1,364,706 0 4,393,340 4,261,589 5,354,985 5,160,906 5,567,200 103 - Paths & Trails Fund Motor Vehicle Fuel (Gas) Tax 8,571 8,703 8,512 8,600 8,700 Investment interest 370 390 186 400 200 8,941 9,093 8,698 9,000 8,900 104 - Hotel/Motel Tax - Tourism Facilities Fund Hotel/Motel Tax 400,509 415,295 454,283 213,000 213,000 Transfers in - #105 250,000 250,000 275,000 0 0 Investment interest 6,854 24,183 43,589 24,000 24,000 105 - Hotel/Motel Tax Fund Hotel/Motel Tax Investment Interest 657,363 689,478 772,872 237,000 237,000 615,981 646,975 743,852 346,000 346,000 3,548 7,058 8,459 6,000 6,000 619,529 654,033 752,311 352,000 352,000 106 - Solid Waste Solid Waste Administrative fee 172,550 182,900 252,396 225,000 225,000 Solid Waste Road Wear fee 0 1,108,028 1,513,532 1,500,000 1,500,000 Grant Proceeds 59,389 0 0 0 0 Investment Interest 1,335 12,486 24,752 12,000 12,000 233,274 1,303,414 1,790,680 1,737,000 1,737,000 107 - PEG Fund Comcast PEG contribution 76,471 81,322 79,498 79,000 79,000 Investment Interest 1,676 971 2,096 0 0 78,147 82,293 81,594 79,000 79,000 108 - Affordable & Supportive Housing Sales Tax Affordable & Supportive Sales Tax 0 0 0 144,750 193,000 Investment Interest 0 0 0 0 0 0 0 0 144,750 193,000 121 - Service Level Stabilization Reserve Fund Investment Interest 16,575 0 0 0 0 16,575 0 0 0 0 122 - Winter Weather Reserve Fund FEMA Grant Proceeds 3,170 0 10,366 0 0 Investment Interest 3,712 5,354 9,899 5,400 1,900 Transfer in - #001 258,000 490,000 120,000 500,000 0 264,882 495,354 140,265 505,400 1,900 123 - Civic Facilities Replacement Fund Investment Interest 0 0 0 0 0 O 0 0 0 0 204 - Debt Service - LTGO 03 Fund Facilities District Revenue 379,750 414,050 432,150 459,500 480,800 Transfers in - #001 397,350 399,350 401,250 401,450 401,500 Transfers in - #301 79,426 82,000 82,475 80,375 80,775 Transfers in - #302 79,425 82,000 82,475 80,375 80,775 935,951 977,400 998,350 1,021,700 1,043,850 47 301 - REET 1 Capital Protects Fund REET 1 - 1st Quarter Percent Investment Interest 302 - REET 2 Capital Protects Fund REET 2 - 2nd Quarter Percent Investment Interest CITY OF SPOKANE VALLEY, WA 2021 Budget - Other Funds Detail Revenues by Type 2017 Actual 1,503,787 21,599 1,525,386 1,503,787 25,594 1,529,381 2018 Actual 2019 Actual 1,968,317 1,695,344 47,045 61,383 2,015,362 1,756,727 1,968,317 1,695,344 61,879 80,784 2,030,196 1,776,128 2020 Amended Budget 2021 Proposed Budget 1,000,000 1,000,000 35,000 25,000 1,035,000 1,025,000 1,000,000 1,000,000 35,000 25,000 1,035,000 1,025,000 303 - Street Capital Protects Fund Grant Proceeds 3,499,888 6,566,816 2,783,332 5,940,505 6,843,308 Developer Contributions 124,488 29,144 228,953 1,311,059 53,703 Investment Interest 0 0 586 0 0 Transfers in - #301 294,558 901,287 517,107 872,605 316,620 Transfers in -#302 81,613 1,031,071 (192,297) 518,199 1,662,684 Transfers in -#312 2,138,145 (547,287) 1,999,130 1,781,727 0 6,138,692 7,981,031 5,336,811 10,424,095 8,876,315 309 - Parks Capital Protects Fund Grant Proceeds 1,657,548 1,605,948 1,114,049 1,605,583 480,530 Investment Interest 215 183 83 0 0 Transfers in - #001 160,000 583,206 1,334,369 2,992,879 160,000 Transfers in - #103 0 50,000 0 0 0 Transfers in - #312 277,437 289,661 262,599 119,373 565,150 2,095,200 310 - Civic Facilities Capital Projects Fund Investment Interest 9,029 9,029 2,528,998 2,711,100 14,049 16,700 14,049 16,700 4,717,835 1,205,680 17,000 3,100 17,000 3,100 311 - Pavement Preservation Fund Grants 89,209 1,422,404 3,665,905 10,588 0 Investment Interest 20,536 54,724 49,593 0 0 Transfers in - #001 953,200 962,700 972,300 982,023 991,843 Transfers in - #101 67,342 67,342 0 0 0 Transfers in - #106 0 1,000,000 1,608,028 1,513,532 1,500,000 Transfers in - #301 660,479 685,329 734,300 772,639 827,278 Transfers in - #302 660,479 685,329 734,300 772,638 827,279 2,451,245 4,877,828 7,764,426 4,051,420 4,146,400 312 - Capital Reserve Fund Investment Interest 52,170 126,565 225,908 100,000 100,000 Sale of Land 0 405,056 0 0 0 Transfers in - #001 3,003,929 3,795,429 7,109,300 0 0 Transfers in - #309 0 0 0 200,000 0 Transfers in - #310 0 0 18,452 16,700 0 Transfers in - #313 0 0 88,589 0 0 313 -City Hall Construction Fund Investment Interest 2016 LTGO Bond Issue Proceeds/Premium 3,056,099 4,327,050 7,442,249 316,700 100,000 18,894 1,416 953 0 0 0 0 0 0 0 18,894 1,416 953 0 0 48 314 - Railroad Grade Separation Protects Fund Grant Proceeds Investment Interest Transfers in - #301 Transfers in - #302 Transfers in - #312 CITY OF SPOKANE VALLEY, WA 2021 Budget - Other Funds Detail Revenues by Type 2017 Actual 2018 Actual 2019 Actual 2020 Amended Budget 2021 Proposed Budget 87,610 571,136 1,447,398 3,526,378 11,508,819 4,072 16,591 15,883 0 0 1,200,000 0 104,918 869,008 0 111,941 (8,147) 0 0 1,127,387 482,216 0 0 142,500 725,774 1,885,839 579,580 1,568,199 4,537,886 13,361,980 402 - Stormwater Management Fund Stormwater Management Fee 1,895,033 1,920,509 1,936,362 1,900,000 1,900,000 Grant Proceeds - Nonrecurring 370,207 128,695 58,746 59,828 100,000 Investment Interest 20,564 40,465 48,642 40,000 40,000 403 - Aquifer Protection Area Fund Spokane County Grant Proceeds Investment Interest 2,285,804 452,110 58,722 10,238 2,089,669 2,043,750 462,980 597,733 28,620 469,429 101,715 37,329 1,999,828 2,040,000 460,000 446,700 20,000 460,000 2,122,045 15,000 521,070 1,089,333 608,473 926,700 2,597,045 501 - Equipment Rental & Replacement Fund Interfund Vehicle Lease 146,429 141,929 0 0 0 Vehicle rentals - #001 0 0 30,000 28,000 31,300 Vehicle rentals - #101 0 0 21,250 14,500 10,250 Vehicle rentals - #101 (plow replace.) 0 0 77,929 48,500 60,500 Vehicle rentals - #402 0 0 12,750 14,000 6,750 Transfers in - #001 (CenterPlace kitchen reserve) 36,600 36,600 36,600 36,600 36,600 Transfers in - #001 (Code Enforcement Vehicle) 0 0 0 30,000 0 Investment Interest 9,651 19,874 26,715 19,000 10,000 502 - Risk Management Fund Transfers in - #001 192,680 198,403 205,244 190,600 155,400 350,000 370,000 390,000 410,000 425,000 Investment Interest 1,107 Total of "Other Fund" Revenues General Fund Revenues Total Revenues 351,107 29,268,428 44,751,345 74,019,773 2,135 2,124 0 0 372,135 392,124 36,577,704 41,522,639 46,699,819 49,401,371 83,277,523 90,924,010 410,000 425,000 38,908,820 44,180,770 49,498,700 45,451,419 88,407,520 89,632,189 49 CITY OF SPOKANE VALLEY, WA 2021 Budget Expenditures by Fund and Department General Fund Council $ 631,566 City Manager 1,158,089 City Attorney 718,593 Public Safety 28,180,515 Operations & Administrative Deputy City Manager 284,844 Finance 1,500,659 Human Resources 318,540 City Hall Operations and Maintenance 301,093 Community & Public Works Engineering 2,098,642 Economic Development 1,070,762 Building and Planning 2,487,066 Parks & Recreation Administration 356,467 Maintenance 940,003 Recreation 328,534 Aquatics 510,053 Senior Center 35,403 CenterPlace 972,214 General Government 5,384,723 Total General Fund $ 47,277,766 Other Funds 101 Street Fund 105 Hotel/Motel Tax Fund 106 Solid Waste 107 PEG Fund 122 Winter Weather Reserve Fund 204 LTGO Bond Debt Service Fund 301 REET 1 Capital Projects Fund 302 REET 2 Capital Projects Fund 303 Street Capital Projects Fund 309 Parks Capital Projects Fund 311 Pavement Preservation 312 Capital Reserve Fund 314 Railroad Grade Separation Projects 402 Stormwater Management Fund 403 Aquifer Protection Area 501 Equipment Rental & Replacement (ER&R) 502 Risk Management Fund 5,567,200 710,000 1,737,000 73,000 500,000 1,043,850 1,224,673 3,698,125 8,876,315 1,120,305 4,726,350 2,050,524 13,796,320 2,626,007 2,378,109 140,000 425,000 Total Other Funds $ 50,692,778 Total All Funds $ 97,970,544 50 Community & Public Works 12% City Hall Operations_ 1% Operations & Administrative 4% Council & Executive 5% CITY OF SPOKANE VALLEY, WA 2021 General Fund Expenditures $47,277,766 Public Safety 760% General Government 11% Parks & Recreation 7% 51 CITY OF SPOKANE VALLEY, WA 2021 City Wide Expenditures $ 97,970,544 Capital Projects Funds 36% Tourism Promotion 1% Street Fund 6% Parks & Recreation 3% Community & Public Works 6% Council / Executive/ Ops & Admin 5% General Government 5% Risk Management 0% Debt Service 1% Public Safety 29% Stormwater & APA Funds 5% Other Activities 3% 52 City Council City Manager City Attorney Public Safety Wages, Benefits & Payroll Taxes CITY OF SPOKANE VALLEY, WA 2021 Budget General Fund Expenditures by Department and Type Supplies Services & Charges Intergovernmental Interfund $ 301,266 $ 5,500 $ 324,800 $ 0 $ 1,087,699 6,800 63,590 0 627,353 4,185 87,055 0 19,000 89,500 277,715 27,752,900 Capital Expenditures Total 0 $ 0 $ 631,566 0 0 1,158,089 0 0 718,593 0 41,400 28,180,515 Operations & Administrative Deputy City Manager 243,944 700 40,200 0 0 0 284,844 Finance 1,476,684 3,000 20,975 0 0 0 1,500,659 Human Resources 293,505 1,000 24,035 0 0 0 318,540 City Hall Operations and Maintenance 106,593 27,000 167,500 0 0 0 301,093 Community & Public Works Engineering 1,855,308 30,500 212,834 0 0 0 2,098,642 Economic Development 639,017 3,000 428,745 0 0 0 1,070,762 Building and Planning 2,134,016 35,050 318,000 0 0 0 2,487,066 Parks & Recreation Administration 292,667 5,000 58,800 0 0 0 356,467 Maintenance 0 3,500 936,503 0 0 0 940,003 Recreation 230,484 9,150 88,900 0 0 0 328,534 Aquatics 0 2,000 508,053 0 0 0 510,053 Senior Center 28,303 1,600 5,500 0 0 0 35,403 CenterPlace 542,938 85,537 343,739 0 0 0 972,214 General Government 0 81,400 813,050 372,930 3,874,543 242,800 5,384,723 Total $ 9,878,777 $ 394,422 $ 4,719,994 $ 28,125,830 $ 3,874,543 $ 284,200 $ 47,277,766 53 City Council Wages, Payroll Taxes & Benefits Supplies Services & Charges Total CITY OF SPOKANE VALLEY, WA 2021 Budget General Fund Department Changes from 2020 to 2021 2020 Adopted Budget 2020 Amended Budget 290,187 4,950 327,050 290,187 4,950 327,050 622,187 2021 Budget 301,266 5,500 324,800 622,187 631,566 City Manager Wages, Payroll Taxes & Benefits 920,892 Supplies 4,300 Services & Charges 72,690 954,192 4,300 72,690 1,087,699 6,800 63,590 Difference Between 2020 and 2021 Increase Decrease) $ 11,079 3.82% 550 11.11% (2,250) (0.69%) 9,379 1.51% 133,507 2,500 (9,100) 13.99% 58.14% (12.52%) Total 997,882 1,031,182 1,158,089 126,907 12.31% City Attorney Wages, Payroll Taxes & Benefits 616,403 616,403 627,353 10,950 1.78% Supplies 4,414 4,414 4,185 (229) (5.19%) Services & Charges 87,125 87,125 87,055 (70) (0.08%) Total 707,942 707,942 718,593 10,651 1.50% Public Safety Non -Departmental (Fines & Forfeits) 516,550 516,550 485,900 (30,650) (5.93%) Wages/Payroll Taxes/Benefits 13,266 13,266 19,000 5,734 43.22% Supplies 30,500 30,500 52,000 21,500 70.49% Other Services and Charges 587,515 337,515 277,715 (59,800) (17.72%) Intergovernmental Services 25,451,383 25,975,872 27,267,000 1,291,128 4.97% Total 26,599,214 26,873,703 28,101,615 1,227,912 4.57% Deputy City Manager Wages, Payroll Taxes & Benefits 234,012 234,012 243,944 9,932 4.24% Supplies 950 950 700 (250) (26.32%) Services & Charges 42,225 42,225 40,200 (2,025) (4.80%) Total 277,187 277,187 284,844 7,657 2.76% Finance/IT Wages, Payroll Taxes & Benefits 1,443,953 1,443,953 1,476,684 32,731 2.27% Supplies 6,450 6,450 3,000 (3,450) (53.49%) Services & Charges 28,120 28,120 20,975 (7,145) (25.41%) Total 1,478,523 1,478,523 1,500,659 22,136 1.50% Human Resources Wages, Payroll Taxes & Benefits 281,331 281,331 293,505 12,174 4.33% Supplies 1,280 1,280 1,000 (280) (21.88%) Services & Charges 30,705 30,705 24,035 (6,670) (21.72%) Total 313,316 313,316 318,540 5,224 1.67% City Hall Operations & Maintenance Wages, Payroll Taxes & Benefits 94,270 94,270 106,593 12,323 13.07% Supplies 28,000 28,000 27,000 (1,000) (3.57%) Services & Charges 174,000 174,000 167,500 (6,500) (3.74%) Total 296,270 296,270 301,093 4,823 1.63% Community & Public Works - Engineering Wages, Payroll Taxes & Benefits 1,726,845 1,710,195 1,855,308 145,113 8.49% Supplies 32,850 32,850 30,500 (2,350) (7.15%) Services & Charges 212,036 212,036 212,834 798 0.38% Total 1,971,731 1,955,081 2,098,642 143,561 7.34% Community & Public Works - Economic Dev Wages, Payroll Taxes & Benefits 724,084 724,084 639,017 (85,067) (11.75%) Supplies 3,000 3,000 3,000 0 0.00% Services & Charges 392,745 392,745 403,745 11,000 2.80% Total 1,119,829 1,119,829 1,045,762 (74,067) (6.61%) Continued to next page 54 CITY OF SPOKANE VALLEY, WA 2021 Budget General Fund Department Changes from 2020 to 2021 Continued from previous page 2020 Adopted Budget 2020 Amended Budget 2021 Budget Difference Between 2020 and 2021 Increase Decrease) $ Community & Public Works - Building & Planning Wages, Payroll Taxes & Benefits 2,044,559 2,044,559 2,134,016 89,457 4.38% Supplies 47,000 47,000 35,050 (11,950) (25.43%) Services & Charges 328,855 328,855 318,000 (10,855) (3.30%) Total 2,420,414 2,420,414 2,487,066 66,652 2.75% Parks & Rec- Admin Wages, Payroll Taxes & Benefits 283,127 Supplies 5,000 Services & Charges 64,100 Total Parks & Rec- Maintenance Supplies Services & Charges Total 283,127 292,667 9,540 3.37% 5,000 5,000 0 0.00% 49,100 58,800 9,700 19.76% 352,227 337,227 356,467 19,240 5.71% 3,500 3,500 3,500 0 0.00% 914,000 914,000 936,503 22,503 2.46% 917,500 917,500 940,003 22,503 2.45% Parks & Rec- Recreation Wages, Payroll Taxes & Benefits 231,081 181,081 230,484 49,403 27.28% Supplies 8,650 8,650 9,150 500 5.78% Services & Charges 86,190 53,190 88,900 35,710 67.14% Total 325,921 242,921 328,534 85,613 35.24% Parks & Rec- Aquatics Supplies 2,000 2,000 2,000 0 0.00% Services & Charges 499,853 130,853 508,053 377,200 288.26% Total 501,853 132,853 510,053 377,200 283.92% Parks & Rec- Senior Center Wages, Payroll Taxes & Benefits 36,347 36,347 28,303 (8,044) (22.13%) Supplies 1,600 1,600 1,600 0 0.00% Services & Charges 5,500 5,500 5,500 0 0.00% Total 43,447 43,447 35,403 (8,044) (18.51%) Parks & Rec- CenterPlace Wages, Payroll Taxes & Benefits 538,083 468,083 542,938 74,855 15.99% Supplies 85,537 67,537 85,537 18,000 26.65% Services & Charges 341,739 281,739 343,739 62,000 22.01% Total 965,359 817,359 972,214 154,855 18.95% General Government Supplies 99,000 99,000 81,400 (17,600) (17.78%) Services & Charges 802,100 802,100 813,050 10,950 1.37% Intergovernmental Services 362,511 362,511 372,930 10,419 2.87% Capital outlays 57,500 57,500 30,000 (27,500) (47.83%) Total 1,321,111 1,321,111 1,297,380 (23,731) (1.80%) Transfers out-#204 401,450 401,450 401,500 50 0.01% Transfers out - #309 160,000 160,000 160,000 0 0.00% Transfers out - #311 Pavement Preservation 982,023 982,023 991,843 9,820 1.00% Transfers out - #501 36,600 36,600 36,600 0 0.00% Transfers out - #502 410,000 410,000 425,000 15,000 3.66% Total recurring expenditures 43,221,986 42,898,125 45,101,466 2,203,341 5.14% Continued to next page 55 CITY OF SPOKANE VALLEY, WA 2021 Budget General Fund Department Changes from 2020 to 2021 Continued from previous page Summary by Category Wages, Payroll Taxes & Benefits Supplies Services & Charges Transfers out - #204 Transfers out - #309 Transfers out - #311 Transfers out - #501 Transfers out - #502 Non -Departmental (fines & forfeits) Intergovernmental Svc (public safety) Intergovernmental Svc Capital outlay 2020 Adopted Budget 2020 Amended Budget 2021 Budget Difference Between 2020 and 2021 Increase Decrease) $ 9,478,440 9,375,090 9,878,777 503,687 5.37% 368,981 350,981 356,922 5,941 1.69% 4,996,548 4,269,548 4,694,994 425,446 9.96% 401,450 401,450 401,500 50 0.01% 160,000 160,000 160,000 0 0.00% 982,023 982,023 991,843 9,820 1.00% 36,600 36,600 36,600 0 0.00% 410,000 410,000 425,000 15,000 3.66% 516,550 516,550 485,900 (30,650) (5.93%) 25,451,383 25,975,872 27,267,000 1,291,128 4.97% 362,511 362,511 372,930 10,419 2.87% 57,500 57,500 30,000 (27,500) (47.83%) 43,221,986 42,898,125 45,101,466 2,203,341 5.14% 56 Fund: 001 Dept: 011 General Fund Legislative Branch Spokane Valley 2021 Budget This department accounts for the cost of providing effective elected representation of the citizenry in the governing body. The Council makes policy decisions for the City and is accountable to Spokane Valley citizens by making decisions regarding how resources are allocated, the appropriate levels of service, and establishing goals and policies for the organization. Accomplishments for 2020 • Updated and adopted a 2021 State Legislative Agenda. • Updated and adopted a Federal Legislative Agenda. • Worked with State and Federal Legislators and Lobbyists on behalf of City interests including lobbying trips to Olympia. • Began the right-of-way acquisition process on the Pines/BNSF Grade Separation Project. • Completed the right-of-way acquisition on the Barker/BNSF Grade Separation Project with the exception of one parcel upon which we've received notification of a Cert 3 acceptance. • Obligated construction funds for the Barker/BNSF Grade Separation Project. • Completed the CenterPlace West Lawn and roof replacement projects at CenterPlace. • In response to the COVID-19 pandemic event and the subsequent federal approval of the CARES Act the City successfully established programs to allocate the nearly $4.4 million we received to partially meet the needs of those members of our community that have suffered the greatest economic loss. This money was used in a variety of ways including rent, mortgage and utility assistance; food security; small business and nonprofit grants; and assisting local school districts in the acquisition of personal protection equipment. • Authorized Staff to apply for a grant of up to $1 million to reimburse the potential acquisition of a 45-acre parcel of land that would in the future be used for park development. • Completed the Evergreen to Sullivan portion of the Appleway Trail project which now means Spokane Valley has a trail running for 5.5 contiguous miles from University to Corbin. • Completed improvements to Indiana Avenue fronting the Spokane Valley Mall with minimal impacts to the adjoining businesses. • Completed the construction of Garland Avenue between Flora and Barker. • Adopted a balanced 2021 Budget and for the twelfth consecutive year did so without taking the 1 % increase in property taxes that is allowed by State Law. • In the midst of a COVID-19 induced recession, adopted a 2021 Budget with status quo levels of service and a General • Fund budget that has recurring revenues exceeding recurring expenditures and an ending fund balance of at least 50% of recurring expenditures. Goals for 2021 1) Work with state and federal legislators towards advancing the concepts outlined in the Bridging the Valley study including obtaining financial assistance for the Pines, Sullivan, and Park Grade Separation Projects. 2)Actively pursue a plan to sustain the City's Pavement Preservation Program, to include sustained financing in Street Fund #101 and Pavement Preservation Fund #311. 3) Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. 4) Sustain and expand where possible, economic development efforts including the retention and expansion of existing businesses and recruitment of new businesses. 5) Continue to foster relationships with federal, state, county and local legislators. 6) Pursue financing for Balfour Park and Appleway Trail amenities, and continue the acquisition of park land. 7) Pursue financing for connections between the Appleway Trail, Balfour Park, Dishman Hills and the Centennial Trail creating where possible, a continuous loop for users. 8) Maximize the law enforcement contract to address staffing levels by enhancing recruiting efforts, minimizing out -of -service days, increasing retention, and taking steps to make the officer positions and the Spokane Valley Police Department increasingly appealing as a career path for those seeking to pursue a law enforcement career in Spokane Valley. 9) Increase community interactions, share information, and obtain feedback on current and future projects and priorities. 10) Prioritize involvement in public safety, in particular discussions regarding the jail and the criminal justice system, in order to maintain an understanding of options to keep our costs under control. (continued on next page) 57 Fund: 001 Dept: 011 General Fund Legislative Branch Spokane Valley 2021 Budget (continued from prior page) Personnel - FTE Equivalents Mayor Council Total FTEs Budget Summary 2017 Actual 1.0 6.0 7.0 2018 Actual 1.0 6.0 7.0 2019 Actual 1.0 6.0 7.0 2020 Budget 1.0 6.0 7.0 2021 Budget 1.0 6.0 7.0 Budget Detail Wages, Payroll Taxes & Benefits $ 219,902 $ 198,884 $ 262,268 $ 290,187 $ 301,266 Supplies 1,974 6,923 5,489 4,950 5,500 Services & Charges 186,243 197,306 295,366 327,050 324,800 Total Legislative Branch $ 408,119 $ 403,113 $ 563,123 $ 622,187 $ 631,566 58 Fund: 001 Dept: 013 General Fund Executive Branch Spokane Valley 2021 Budget 013 - City Manager Division This department is accountable to the City Council for the operational results of the organization, effective support of elected officials in achieving their goals, fulfillment of the statutory requirements of the City Manager, implementation of City Council policies, and provision of a communication linkage between citizens, the City Council, City departments, and other government agencies. Accomplishments for 2020 • Worked to support City Council's 2020 Goals as referenced in the Legislative Branch Budget. • Worked with all City departments to update the 2021 Business Plan that is a precursor to the development of the 2021 Budget which is accomplished by linking community priorities, financial projections and City Council goals. • Prepared a 2021 General Fund Budget with status quo levels of service. • Worked with Council to prepared a 2021 State Legislative Agenda that was discussed by Council on three separate occasions. This was followed by a separate meeting with our 4th District Legislative Delegation where Councilmembers and Legislators discussed areas of common interest, including our legislative agenda. • Worked with Council and Staff to update our Federal Legislative Agenda. • Worked with State and Federal Legislators and Lobbyists on behalf of City interests including lobbying in Olympia. • Continued discussions focused on developing a sustainable plan to finance the City's Pavement Preservation Program including Street O&M Fund #101 and Pavement Preservation Fund #311 including a discussion on options for preservation surface treatments. Goals for 2021 • Focus staff efforts on the City's budget priorities that are composed of public safety, pavement preservation, transportation and infrastructure and economic development. • Work to support City Council's 2021 Goals as referenced under the Legislative Branch Budget. • Present Council with a balanced 2022 Budget that includes General Fund recurring revenues exceeding recurring expenditures and an ending fund balance that is at least 50% of recurring expenditures. • Work with Federal and State Legislators and Lobbyists on behalf of the interests of our City. • Prepare the 2022 State and Federal Legislative Agendas for Council consideration. Personnel - FTE Equivalents City Manager City Clerk Deputy City Clerk Administrative Analyst Senior Administrative Analyst Administrative Assistant (CC) Executive Assistant (CM) Housing & Homeless Services Coordinator Total FTEs Budget Summary 2017 Actual 1.0 1.0 1.0 0.0 0.0 1.0 1.0 0.0 5.0 2018 Actual 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0 5.0 2019 Actual 1.0 1.0 1.0 1.0 1.0 0.5 1.0 0.0 7.0 2020 Budget 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 7.5 2021 Budget 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 7.5 Budget Detail Wages, Payroll Taxes & Benefits $ 580,529 $ 783,650 $ 830,903 $ 954,192 $ 1,087,699 Supplies 3,569 3,470 3,750 4,300 6,800 Services & Charges 26,059 48,380 53,604 72,690 63,590 Nonrecurring expenditures 0 7,341 0 5,000 0 Total City Manager Division $ 610,157 $ 842,841 $ 888,257 $ 1,036,182 $ 1,158,089 59 Fund: 001 Dept: 013 General Fund Executive Branch Spokane Valley 2021 Budget 015 - City Attorney Division Accomplishments for 2020 • Provided significant assistance to Council and other staff regarding homelessness issues, including issues related to funding affordable housing, available resources, land use issues related to affordable housing and homeless shelters, regional collaboration, and enforcement options. Assisted in development and implementation of new park regulations, and regulations addressing camping on public property. • Provide wide range of assistance to Council and staff regarding response to COVID-19 pandemic. • Significant involvement in a number of legislative land use and permitting issues, including conducting administrative appeals and litigation in Superior Court. • Provide advice and assistance to City Manager and staff regarding ongoing implementation issues with solid waste collection contracts related to changes in recycling markets. • Assisted with issues related to the 2020 lodging tax revenue distributions, including revisions. • Conducted various trainings for Council, Planning Commission, the Lodging Tax Advisory Committee, and staff. • Assisted with various litigation cases against the City. • Provided legal support to Code Enforcement for prosecuting and abating nuisance cases. • Provided support to senior staff regarding pursuit of City Hall Council Chambers curved wall construction defect issues. • Assisted staff in numerous property acquisition issues associated with the Barker Grade Separation Project. • Assisted staff and Council in drafting legislative agenda for state and federal lobbying efforts, primarily aimed at securing additional funding for the Pines Grade Separation Project. • Negotiated/finalized agreement with Valleyfest for adoption. • Acted as City liaison with regional entities on a broad range of criminal justice and mental health issues, including the Spokane Regional Law and Justice Council, and the Justice Task Force. • Responded to numerous public record issues, including review of records. Goals for 2021 • Have a fully -operational office that proactively assists in program development, advises all departments on legal issues in a timely manner and manages all potential and existing litigation. • Work with Community and Public Works and Finance in identifying and implementing economic development options. • Assist other departments in analyzing and mapping existing processes to determine compliance with laws and whether higher levels of customer service can be achieved. • Assist Council and staff in accomplishing items on the 2021 state Legislative Agenda. Personnel - FTE Equivalents City Attorney Deputy City Attorney Attorney Administrative Assistant - Legal Total FTEs Budget Summary 2017 Actual 1.0 1.0 0.0 1.0 3.0 2018 Actual 1.0 1.0 0.5 1.0 3.0 2019 Actual 1.0 1.0 0.5 1.0 3.5 2020 Budget 1.0 1.0 1.0 1.0 4.0 2021 Budget 1.0 1.0 1.0 1.0 4.0 Interns 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 411,988 $ 472,873 $ 510,618 $ 616,403 $ 627,353 Supplies 1,030 1,340 1,220 4,414 4,185 Services&Charges 66,130 49,896 53,911 87,125 87,055 Nonrecurring expenditures 0 5,919 0 0 0 Total City Attorney Division $ 479,148 $ 530,028 $ 565,749 $ 707,942 $ 718,593 60 Fund: 001 Dept: 016 General Fund Public Safety Spokane Valley 2021 Budget The Public Safety department budget provides funds for the protection of persons and property in the city. The City contracts with Spokane County for law enforcement, district court, prosecutor services, public defender services, probation services, jail and animal control services. See following page for detail information on each budgeted section. Recurring Expenditures: Judicial System - The Spokane County District Court is contracted to provide municipal court services. The contract provides for the services of judge and court commissioner with related support staff. Budgeted amount also includes jury management fees. Law Enforcement - The Spokane County Sheriffs Office is responsible for maintaining law and order and providing police services to the community under the direction of the Police Chief. The office provides for the preservation of life, protection of property, and reduction of crime. Jail System - Spokane County provides jail and probation services for persons sentenced by any City of Spokane Valley Municipal Court Judge for violating laws of the city or state. Animal Control - Spokane County will provide animal control services to include licensing, care and treatment of lost or stray animals, and response to potentially dangerous animal confrontations. Non -Departmental Fines and forfeitures to the State of Washington Grant expenditures $ 2,245,000 23,480,715 1,500,000 350,000 485,900 40,000 Total Recurring Expenditures 28,101,615 Nonrecurring Expenditures: Building repair and office furniture Machinery and equipment Total Nonrecurring Expenditures Total Recurring and Nonrecurring Expenditures 30,000 48,900 78,900 $ 28,180,515 61 Recurring: Judicial System: District Court Contract Public Defender Contract Prosecutor Contract Pretrial Services Contract City of Spokane Valley 2021 Budget 016 - Public Safety 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 712,168 $ 836,995 $ 888,965 $ 919,269 $ 925,000 697,986 788,302 745,088 740,207 750,000 464,250 457,949 424,896 383,169 450,000 107,807 105,793 109,783 120,000 120,000 Subtotal Judicial System 1,982,211 2,189,039 2,168,732 2,162,645 2,245,000 Law Enforcement System: Sheriff Contract 17,792,178 20,177,258 20,272,826 22,218,101 23,072,000 Emergency Management Contract 97,094 92,296 89,425 100,000 100,000 Wages, Payroll Taxes & Benefits 2,819 9,802 16,164 13,266 19,000 Operating Supplies 3,509 2,346 72 2,500 0 Clothing & Uniform 0 358 636 0 0 Repair & Maintenance. Supplies 1,202 2,730 11,208 3,000 12,000 Professional Services 0 3,373 3,773 3,500 4,000 Cell Phones 0 278 469 0 0 Registrations 0 0 70 0 0 Electricity/Gas 18,283 16,505 16,579 18,000 18,000 Water 1,621 1,806 1,762 2,000 2,000 Sewer 2,102 1,348 1,079 2,300 2,000 Waste Disposal 3,442 585 0 0 0 Janitorial Services 0 32,325 28,631 0 30,000 LawEnf. Bldg Maintenance Contract 74,108 26,235 16,706 61,000 20,000 Taxes and Assessments 715 715 715 715 715 Equipment Rental 0 0 767 0 1,000 Miscellaneous Services/Contingency 0 0 0 250,000 200,000 False Alarm Charges & Fees 3,135 404 809 0 0 Bank Fees 2,333 0 0 0 0 Subtotal Law Enforcement System 18,002,541 20,368,364 20,461,691 22,674,382 23,480,715 Jail System: Jail Contract 1,331,721 1,249,948 1,493,325 1,145,126 1,500,000 Subtotal Jail System 1,331,721 1,249,948 1,493,325 1,145,126 1,500,000 Other: Fines & Forfeitures State Remittance 464,056 495,683 441,880 516,550 485,900 Animal Control Contract 293,425 299,139 306,509 350,000 350,000 Non -Capital Equipment for JAG Grant 0 0 0 25,000 40,000 Settle & Adjust (1,087,807) 0 0 0 0 Subtotal Other (330,326) 794,822 748,389 891,550 875,900 Subtotal Recurring 20,986,147 24,602,173 24,872,137 26,873,703 28,101,615 Nonrecurring: Police Athletic League Grant 0 0 4,069 0 0 Building Repair and Maintenance 0 0 0 15,000 30,000 Carpet and Workstation Replacement 0 0 59,272 0 0 Replace HVAC units 0 0 0 60,000 0 Replace handguns and speed trailer 0 0 0 0 48,900 LEC Labor Contract Settlement 323,445 0 0 0 0 Full Facility Generator 0 0 141,690 58,310 0 Capital outlay - CAD / RMS 131,018 22,372 0 0 0 Subtotal Nonrecurring 454,463 22,372 205,031 133,310 78,900 Total Public Safety $ 21,440,610 $ 24,624,545 $ 25,077,168 $ 27,007,013 $ 28,180,515 62 $- 750,000 City of Spokane Valley 2021 Budgeted Contract Expenditures 450,000 23,072,000 100,000 20,000 350,000 District Court Public Defender Prosecutor Sheriff Contract Emergency Law Enf. Bldg Jail Contract Animal Control Contract Contract Contract Management Maintenance Contract Contract Contract 63 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2021 Budget The Operations & Administrative Services Department is composed of three divisions, the Deputy City Manager Division, the Finance Division, and the Human Resources Division. 013 - Deputy City Manager Division The Deputy City Manager (DCM) supervises the Community and Public Works Department, assists the City Manager in organizing and directing the other operations of the City, and assumes the duties of City Manager in his/her absence. Accomplishments for 2020 • Supported the 2020 Goals of the Legislative and Executive Branch. • Worked with the City Manager and Staff to develop the 2021 Business Plan. • Maintained City operations for permitting and capital projects throughout the COVID-19 pandemic. • Completed the infrastructure projects within the Northeast Industrial Area and continued the recruitment processes for ongoing industrial projects. • Completed the design for the Barker Grade Separation Project and obligated state and federal construction funds. Goals for 2021 • Initiate construction of the Barker Grade Separation Project. • Conduct Council discussions on localized and city wide traffic impact fees for new development. • Complete the design of the Pines Grade Separation Project. • Continue to seek funding for the Pines Grade Separation Project. • Oversee the design of the City Hall repairs. Personnel - FTE Equivalents Deputy City Manager Senior Administrative Analyst Public Information Officer Administrative Analyst Office Assistant I Office Assistant 11 Total FTEs Budget Summary 2017 Actual 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2018 Actual 1.0 0.0 0.0 0.0 1.0 1.0 3.0 2019 Actual 1.0 0.0 0.0 0.0 0.0 0.0 1.0 2020 Budget 1.0 0.0 0.0 0.0 0.0 0.0 1.0 2021 Budget 1.0 0.0 0.0 0.0 0.0 0.0 1.0 Intern 1.0 0.0 0.0 0.0 0.0 Budget Detail Wages, Payroll Taxes & Benefits $ 637,606 $ 354,918 $ 222,070 $ 234,012 $ 243,944 Supplies 1,277 425 0 950 700 Services & Charges 52,555 83,335 37,162 42,225 40,200 Nonrecurring Software Purchase (Q-Alert) 0 13,195 0 0 0 Total Deputy City Manager Division $ 691,438 $ 451,873 $ 259,232 $ 277,187 $ 284,844 64 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2021 Budget 014 - Finance Division The Finance Division provides financial management services for all City departments. Programs include accounting and financial reporting, payroll, accounts payable, purchasing, budgeting and financial planning, treasury, information technology and investments. The division is also responsible for generating and analyzing financial data related to the City's operations. The department prepares Finance Activity Reports for review by the City Manager and City Council as well as the Comprehensive Annual Financial Report (CAFR) that is subject to an annual audit by the Washington State Auditor's Office. Accomplishments for 2020 • Implemented audit recommendations. • Completed the 2019 CAFR by the extended deadline of July 1, 2020, and received a "clean audit opinion" despite being short staffed due to turnover and the COVID-19 pandemic. • Maintained consistent levels of service in payroll, accounts payable, budget development, periodic financial report preparation, and information technology services. • Worked with Finance staff to cross -train position responsibilities and knowledge base where possible; The Finance department will implement further cross training procedures among department personnel to provide adequate coverage if or when unforeseeable circumstances arise. • Replaced financial statement preparation software, and provided training to staff on the new software. • Continued with the ongoing process of refining the replacement program for IT resources. • Added a new IT Manager position to the department. • Completed an IT cybersecurity audit with the State Auditor's Office and began long term planning to strengthen the City's cybersecurity infrastructure. • Implemented software to provide testing and training to City staff on common cyber attacks, such as phishing emails. • Worked with City Council, the City Attorneys Office, and other departments to allocate the CARES Act funding received by the City in response to the COVID-19 pandemic. Performed financial reporting and grant reimbursements for the funding through the Department of Commerce. Evaluated expenditures for eligibility with the program. • Implemented a new electronic accounts payable process in order to facilitate invoice review and approval while City staff were required to work from home due to the COVID-19 pandemic. Goals for 2021 • Maintain a consistent level of service in payroll, accounts payable, budget development, periodic and annual financial report preparation and information technology services. • Work with Finance staff to cross -train position responsibilities and knowledge base where possible. The Finance department will implement further cross training procedures among department personnel to provide adequate coverage if or when unforeseeable circumstances arise. • Provide adequate training opportunities to allow staff members to remain current with changes in pronouncements by the Governmental Accounting Standards Board (GASB), changes in the Eden financial management system, and changes in the electronic technology that allows all City employees to be more efficient and effective. • Continue with the ongoing process of refining the replacement program for IT hardware resources including server hardware, network hardware, printers, and network -based appliances (firewalls, email backup, network switches, intrusion prevention hardware, etc.), desktop computers, and the phone system. This will continue to be the foundation for future budget developments and in large part dictate operational workload through the course of the next year. • Explore new software to replace the Eden Financial Management System which has reached end of life. • Implement Laserfische Workflow for City processes. (continued on next page) 65 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2021 Budget (continued from prior page) Personnel - FTE Equivalents Finance Director Accounting Manager Accountant/Budget Analyst Accounting Technician IT Manager IT Specialist GIS/Database Administrator Help Desk Technician Total FTEs Budget Summary 2017 Actual 1.00 1.00 3.75 2.00 0.00 3.00 1.00 0.00 11.75 2018 Actual 1.00 1.00 3.75 2.00 0.00 3.00 1.00 0.00 11.75 2019 Actual 1.00 1.00 3.75 2.00 0.00 3.00 1.00 0.00 11.75 2020 Budget 1.00 1.00 3.75 2.00 1.00 2.00 1.00 0.00 11.75 2021 Budget 1.00 1.00 3.75 2.00 1.00 2.00 1.00 0.00 11.75 Budget Detail Wages, Payroll Taxes & Benefits $ 1,209,761 $ 1,269,966 $ 1,275,580 $ 1,443,953 $ 1,476,684 Supplies 3,507 3,350 2,798 6,450 3,000 Services & Charges 20,764 20,667 18,113 28,120 20,975 Total Finance Division $ 1,234,032 $ 1,293,983 $ 1,296,491 $ 1,478,523 $ 1,500,659 66 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2021 Budget 016 - Human Resources Division Human Resources (HR) is administered through the City Manager. The HR operation provides services in compensation, benefits, training and organizational development, staffing, employee relations, and communications. The Human Resources Office also provides Risk Management services as well as Website and Mobile App design and maintenance Accomplishments for 2020 • Implemented the City's comprehensive Employee Emergency Response Plan. • Supported management and employees responding to COVID 19 . • Offered on-line training to employees working remotely. • Supported the City's update of the Continuity Of Operations Plan. • Attained the 2020 Wellcity Award reducing health care plan expense for the City and employees. • Revised the City's Anti -Harassment and Equal Employment Opportunity policies in preparation for future training. Goals for 2021 • Successfully bargain a successor Collective Bargaining Agreement with Local 270v. • Support departments in the Cities return from COVID-19 precautions. • Increase timely completion of annual employee reviews. • Examine employee benefit options to target employee needs and reduce employment expenses. • Provide Anti -Harassment and Equal Employment Opportunity training to employees and Supervisors. Budget Summary Personnel - FTE Equivalents Human Resource Manager Human Resource Technician Total FTEs 2017 Actual 1.0 1.0 2.0 2018 Actual 1.0 1.0 2.0 2019 Actual 1.0 1.0 2.0 2020 Budget 1.0 1.0 2.0 2021 Budget 1.0 1.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 235,127 $ 251,995 $ 268,140 $ 281,331 $ 293,505 Supplies 1,469 1,227 1,888 1,280 1,000 Services & Charges 15,947 21,949 23,302 30,705 24,035 Total Human Resources Division $ 252,543 $ 275,171 $ 293,330 $ 313,316 $ 318,540 67 Fund: 001 Dept: 032 General Fund Public Works Spokane Valley 2021 Budget The Public Works Department was consolidated into the new Community and Public Works Department during the City's reorganization effective April 1, 2017. Historical information will be included here for comparison purposes until the prior years' activity drops off of the below Budget Summary. Budget Summary Personnel - FTE Equivalents Public Works Director Administrative Assistant Capital Improvements Program Manager Engineer Engineering Technician I Engineering Technician 11 Maint/Const Inspector Planning Grants Engineer Senior Engineer Senior Engineer - Proj Mgmt Total FTEs 2017 Actual 1.0 2.0 1.0 1.0 2.0 1.0 0.5 0.375 0.0 2.0 10.875 2018 Actual 0 0 0 0 0 0 0 0 0 0 0 2019 Actual 0 0 0 0 0 0 0 0 0 0 0 2020 Budget 0 0 0 0 0 0 0 0 0 0 0 2021 Budget 0 0 0 0 0 0 0 0 0 0 0 Budget Detail Wages, Payroll Taxes & Benefits $ 658,439 $ 0 $ 0 $ 0 $ 0 Supplies 12,469 0 0 0 0 Services & Charges 88,179 0 0 0 0 Total Public Works $ 759,087 $ 0 $ 0 $ 0 $ 0 68 Fund: 001 Dept: 033 General Fund City Hall Operations and Maintenance Spokane Valley 2021 Budget The Community and Public Works Division provides management and oversight of the City Hall Operations and Maintenance Department. This department is responsible for the overall operations and maintenance of the City Hall facility, the construction of which broke ground in June of 2016 and was completed in the Fall of 2017. The building is located on a 3.38 acre site at the southeast corner of Sprague Avenue and Dartmouth Road. The City Hall Operations and Maintenance Department is responsible for, among other things, the grounds maintenance, janitorial services, and maintenance of the HVAC and other building systems. This department is also responsible for the operations and maintenance of other City facilities, such as the Valley Precinct and the Street Maintenance Shop, as time allows. Accomplishments for 2020 • Explored opportunities for cost savings related to contract services: landscape maintenance, etc. • Tracking maintenance request system with the newly created tracking system to more easily prioritize requests. • Continue to coordinate maintenance activities with SVPD Precinct staff. • Continue to coordinate maintenance activities with Street Maintenance Shop staff. • Refined City Hall security system functions to reduce false alarms. • Created annual building systems maintenance schedule: elevator, alarm, suppression, etc. • Complete City Hall facade improvements following maintenance/repair activities. Goals for 2021 • Continue options for cost savings related to contract services: landscape maintenance, etc. • Monitor maintenance tracking system in order to prioritize work. • Continue to coordinate maintenance activities with SVPD Precinct staff. • Continue to coordinate maintenance activities with Street Maintenance Shop staff. • Coordinate emergency preparedness drills with affected staff and coordinating agencies. Budget Summary Personnel - FTE Equivalents Maintenance Worker - Facilities Total FTEs 2017 Actual 0.0 0.0 2018 Actual 1.0 1.0 2019 Actual 1.0 1.0 2020 Budget 1.0 1.0 2021 Budget 1.0 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 74,264 $ 86,534 $ 94,270 $ 106,593 Supplies 3,289 27,757 32,920 28,000 27,000 Services & Charges 55,159 163,323 156,699 174,000 167,500 Nonrecurring expenditures 36,509 0 174,807 500,000 0 Total Administrative Division $ 94,957 $ 265,344 $ 450,960 $ 796,270 $ 301,093 69 Fund: 001 Dept: 040 General Fund Community & Public Works Spokane Valley 2021 Budget The Community and Public Works Department is a new department as a result of the City's reorganization effective April 1, 2017. This Department is a consolidation of the previous Public Works and Community and Economic Development Departments. It is comprised of three divisions: the Engineering Division, the Economic Development Division, and the Building and Planning Division. 041 -Engineering Division The Engineering Division combines Development Engineering from the previous Community & Economic Development Department with the engineering service provided by the previous Public Works Department. The Engineering Division includes the following functions: Capital Improvement Program (CIP) plans, designs, and constructs new facilities and maintains, preserves, and reconstructs existing facilities owned by the City of Spokane Valley. Development Engineering (DE) ensures that land actions and commercial building permits comply with the adopted codes for private infrastructure development through plan review and construction inspection. Traffic Management and Operations provides traffic engineering for safe and efficient multi -faceted transportation systems throughout the City (included in the Street Fund #101). Utilities oversees the City's surface and Stormwater Utility, manages the City's contracts for solid waste collection and disposal, and coordinates other utility issues on behalf of the City as assigned (included in the Stormwater Management Fund #402). Street Maintenance provides responsive maintenance and repairs for 461 center line miles of City streets. The City of Spokane Valley operates ten City -owned snow plows which are responsible for the clearing of the priority 1 and 2 roads along with selected hillsides (included in the Street Fund #101). Accomplishments for 2020 • Implemented approved capital projects. • Administered and managed state and federal funds received for capital projects. • Assisted with the preparation of grant applications for capital projects. • Completed the design and right-of-way acquisition processes for the Barker Road Grade Separation Project. • Secured federal funds to fully fund the right-of-way phase of the Pines Road Grade Separation Project. • Continued to coordinate regional transportation issues with Spokane Regional Transportation Council, adjoining municipalities, and the Washington State Department of Transportation. • Began the preliminary engineering design of the Pines Road GSP project and acquired 3 parcels needed for the project. • Completed the construction of the Appleway Trail between Sullivan and Evergreen - providing a contiguous 5.1 mile trail. • Maintain development engineering plan review times of less than two weeks. Goals for 2021 • Implement approved capital projects. • Administer the construction phase of the Barker Road Grade Separation Project. • Advance the preliminary engineering and right-of-way phase of the Pines Road Grade Separation Project. • Continue pursuing opportunities to fund the completion of the Pines Road Grade Separation Project. • Administer and manage state and federal funds received for capital projects. • Assist in the preparation of grant applications for capital projects. • Continue to coordinate regional transportation issues with SRTC, WSDOT, and other agencies. • Begin the process of developing a city-wide, comprehensive Asset Management Program. • Begin a review of the City's adopted Street Standards, providing updates where necessary. (continued on next page) 70 Fund: 001 Dept: 040 General Fund Community & Public Works Spokane Valley 2021 Budget (continued from prior page) Personnel - FTE Equivalents Administrative Assistant Assistant Engineer City Engineer Engineer Engineering Manager Engineering Tech I Engineering Tech 11 Main/Construction Inspector Planning Grants Engineer Senior Dev Engineer Senior Engineer-Proj Mgmt. Water Resource Sr. Engineer Total FTEs Budget Summary 2017 Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2018 Actual 2.0 0.0 1.0 1.0 1.0 1.0 0.5 2.0 0.0 1.0 1.5 1.0 0.0 2019 Actual 2.0 0.45 1.0 0.5 1.0 1.5 0.75 2.0 0.375 1.0 1.7 1.0 12.0 2020 Budget 2.0 0.20 1.0 1.0 1.0 1.5 0.75 2.0 0.375 1.0 1.7 1.0 13.525 2021 Budget 2.0 0.70 1.0 1.0 1.0 1.5 0.75 2.0 0.375 1.0 1.7 1.0 14.025 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 1,234,170 $ 1,472,750 $ 1,710,195 $ 1,855,308 Supplies 0 22,772 30,616 32,850 30,500 Services & Charges 0 149,142 200,147 212,036 212,834 Total Engineering Division $ 0 $ 1,406,084 $ 1,703,513 $ 1,955,081 $ 2,098,642 * These positions are budgeted partially to the Engineering Division in the General Fund with the balance budgeted as a part of Capital Projects Funds, the Street Fund #101, and the Stormwater Fund #402. 71 Fund: 001 Dept: 040 General Fund Community & Public Works Spokane Valley 2021 Budget 042 - Economic Development Division The Economic Development Division oversees the Comprehensive Plan, the Six -Year Transportation Improvement Plan (TIP), Community Development Block Grants and Public Relations. The Division works to build relationships with businesses, the community, and economic development partners to pursue economic development strategies ensuring long-term fiscal strength of the City. Accomplishments for 2020 • Worked with our retail recruiter to implement the retail improvement strategy and developed a sales tax estimation tool. • • • • • • • • • • • • • • Completed digital campaigns for manufacturing, aerospace, health sciences/tech industries and skilled labor recruitment. • Developed videos on the completion of the Appleway Trail and on the Pines Rd/BNSF Grade Separation Project. • Completed Appleway Trail Economic Development Study funded by CERB grant. • Sent emails or postcards to more than 10,000 businesses who purchased a new or renewed city business license. • Developed and promoted virtual business workshops with Spokane Valley Chamber, SNAP and StartUp Spokane. • Created new messages quarterly for the phone system about city services, programs and events. • Informed media/public about road construction projects with map, press release, newsletter article and mailers. • Partnered with Parks & Recreation to publicize programs, events and related construction projects. Processed the annual Comprehensive Plan amendments that included a city -initiated areawide rezone. Collaborated with the private sector to facilitate the successful development of Mirabeau Point. Evaluated and approved projects in the Northeast Industrial Area as Planned Actions expediting permit reviews. Developed and processed a code text amendment to provide criteria to evaluate annexations. Researched and identified new target industries for recruitment, retention and expansion. Collaborated with economic development partners and related service providers. Used CDBG funds to provide sewer hookup assistance in low and moderate income areas. Worked with Visit Spokane to complete an updated tourism brochure and website content. Developed a branded series of print materials informing citizens of city services. Updated the city's newsletter to a magazine format producing fewer but more comprehensive issues. Utilized new and existing social media platforms to increase citizen pride and the public's awareness of city services. Completely overhauled the content management system for the Economic Development website. Completed a paid digital marketing campaign to promote restaurants that provided takeout/delivery during pandemic. Completed paid digital marketing campaigns to promote federal and city CARES Act grants. Developed extensive web content to keep businesses, nonprofits and residents updated on pandemic. Goals for 2021 • Implement the retail recruitment strategy. • Collaborate with the private sector to facilitate the successful development of Mirabeau Point. • Continue industry recruitment, retention and expansion. • Develop marketing campaigns to promote business recruitment, retention and expansion. • Collaborate with economic development partners and related service providers. • Identify infrastructure improvements needed to foster economic development. • Use CDBG funds to support economic vitality in low and moderate income areas. • Seek grants to support economic development initiatives. • Coordinate the development and adopt the Housing Action Plan. • Facilitate the development of the Shoreline Master Program update. • Review and process city and privately initiated amendments to the Comprehensive Plan. • Develop homelessness goals and policies to provide direction to City leaders. • Continue to analyze impacts of COVID-19 on city businesses and provide guidance to improve local economy. • Work with partners to enhance existing events, including state of the city, and bring new events to Spokane Valley. • Develop marketing campaigns to promote city events in 2021 to enhance tourism. • Enhance the Economic Development website content to attract skilled labor, with an emphasis on remote workers. • Enhance the use of video as a communications tool and strategy on city websites and in social media. • Developed strategies to enhance business connections to Appleway Trail, as identified in 2020 CERB study. • Utilize new and existing social media platforms to increase citizen pride and the public's awareness of city services. • Produced semi-annual newsletter informing citizens of current projects, services and events. • Continue to develop a PIO group of city, county and emergency services that meets periodically. • Increase media contacts and establish and retain media relationships for greater sharing of city services. • Partner with Parks and Recreation to publicize programs, events and related construction projects. • Create and upload new messages quarterly for the phone system about city services, programs and events. • Continue evaluating city website to determine potential improvements to design, navigation and content. • Gather updated high resolution photos of City Council, CenterPlace, area parks and scenic sites. (continued on next page) 72 Fund: 001 Dept: 040 General Fund Community & Public Works Spokane Valley 2021 Budget (continued from prior page) Personnel - FTE Equivalents Economic Development Manager Economic Development Specialist Planning Grants Engineer Public Information Officer Senior Transportation Planner Office Assistant I Total FTEs Interns Budget Summary 2017 Actual 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2018 Actual 2019 Actual 2020 Budget 2021 Budget 1.0 1.0 1.0 1.0 2.0 2.0 2.0 1.0 0.4 0.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 6.4 6.0 6.0 5.0 0.0 1.0 1.0 1.0 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 655,942 $ 582,027 $ 724,084 $ 639,017 Supplies 0 3,008 1,954 3,000 3,000 Services & Charges 0 294,699 333,157 392,745 403,745 Nonrecurring Expenditures 0 23,000 25,000 128,000 25,000 Total Engineering Division $ 0 $ 976,649 $ 942,138 $ 1,247,829 $ 1,070,762 73 Fund: 001 Dept: 040 General Fund Community & Public Works Spokane Valley 2021 Budget 043 - Building and Planning Division The Building and Planning Division is responsible for implementing and enforcing the State Building Code as required by state law. The purpose of the International Codes, as adopted by the State of Washington and City of Spokane Valley, is to promote the health, safety, and welfare of the occupants or users of the building and structures and the general public by requiring minimum performance standard for structural strength, exit systems, stability sanitation, light, ventilation, energy conservation, and fire safety to ensure the City's comply with various codes. The Planning program's current primary responsibilities include processing revisions to the City's Municipal Code, reviewing land use applications to ensure compliance with adopted development regulations, with the State Environmental Policy Act (SEPA)(RCW 43.21 C), and with the state subdivision law (RWC 58.17). Accomplishments for 2020 • Redefined processes in order to work on an online submittal process. • Enhanced electronic plan submittal/review capabilities. • Continued to expand online permitting to include additional project types. • Continued development of educational opportunities for public awareness of Code Enforcement Program. • Sought out additional opportunities to develop relationships with outside agencies. • Worked to repair/enhance SMARTGov reporting accuracy. • Participate in SMARTGov system focus group with other jurisdictions. • Utilized Office of City Attorney staff expertise related to legal aspects of code enforcement to improve case close-out. • Work with Economic Development team to improve website content/function. Goals for 2021 • Begin process for scanning commercial address files. • Continue to coordinate with the City Attorneys office on code enforcement cases. • Work to enhance relationships with our outside agencies. • Continue to work on website enhancements for better customer service. • Install customer terminal in Permit Center for self-help services. • Implement 2018 building codes as per SBCC adoption; process CTA related to SVMC Title 24 accordingly. • Continue to work to improve SMARTGov reporting accuracy. • Continue to improve processes for online submittals. Budget Summary Personnel - FTE Equivalents Administrative Assistant Assistant Building Official Building Inspector II Building Official Code Enforcement Officer Development Service Coordinator Engineering Tech Office Assistant I Office Assistant II Permit Facilitator Permit Specialist/Facilitator Planner Plans Examiner Senior Planner Senior Plans Examiner Total FTEs 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget 0.0 1.0 1.0 1.0 1.0 0.0 1.0 1.0 1.0 1.0 0.0 3.0 3.0 3.0 3.0 0.0 1.0 1.0 1.0 1.0 0.0 1.0 1.0 2.0 2.0 0.0 1.0 1.0 1.0 1.0 0.0 1.0 1.0 1.0 1.0 0.0 2.0 3.0 3.0 3.0 0.0 0.0 1.0 1.0 1.0 0.0 2.0 1.0 0.0 0.0 0.0 0.0 1.0 2.0 2.0 0.0 3.0 3.0 3.0 3.0 0.0 1.0 1.0 1.0 1.0 0.0 1.0 1.0 1.0 1.0 0.0 1.0 0.0 0.0 0.0 0.0 19.0 19.0 21.0 21.0 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 1,614,264 $ 1,860,223 $ 2,044,559 $ 2,134,016 Supplies 0 25,114 17,305 47,000 35,050 Services & Charges 0 228,090 299,929 328,855 318,000 Intergovernmental Payments 0 38,718 0 0 0 Nonrecurring expenditures 0 0 0 13,700 0 Total Building Division $ 0 $ 1,906,186 $ 2,177,457 $ 2,434,114 $ 2,487,066 74 Fund: 001 Dept: 058 General Fund Community & Economic Development Spokane Valley 2021 Budget The Community and Economic Development Department was consolidated into the new Community and Public Works Department during the City's reorganization effective April 1, 2017. Historical information will be included here for comparison purposes until the prior years' activity drops off of the below Budget Summary. 050 - Administration Division Budget Summary Personnel - FTE Equivalents Community Development Director Administrative Assistant Total FTEs 2017 Actual 1.0 1.0 2.0 2018 Actual 0 0 0 2019 Actual 0 0 0 2020 Budget 0 0 0 2021 Budget 0 0 0 Budget Detail Wages, Payroll Taxes & Benefits $ 77,974 $ 0 $ 0 $ 0 $ 0 Supplies 2,463 0 0 0 0 Services & Charges 9,484 0 0 0 0 Nonrecurring expenditures 0 0 0 0 0 Total Administrative Division $ 89,921 $ 0 $ 0 $ 0 $ 0 Personnel - FTE Equivalents Engineer Senior Planner - CD E.D. Project Specialist Total FTEs 051 - Economic Development Division Budget Summary 2017 Actual 0.65 1.0 1.0 2.65 2018 Actual 0 0 0 0 2019 Actual 0 0 0 0 2020 Budget 0 0 0 0 2021 Budget 0 0 0 0 Budget Detail Wages, Payroll Taxes & Benefits $ 291,881 $ 0 $ 0 $ 0 $ 0 Supplies 965 0 0 0 0 Services & Charges 191,615 0 0 0 0 Nonrecurring expenditures 0 0 0 0 0 Total Economic Development Division $ 484,461 $ 0 $ 0 $ 0 $ 0 75 Fund: 001 Dept: 058 General Fund Community & Economic Development Spokane Valley 2021 Budget Personnel - FTE Equivalents Development Services Manager Engineer Assistant Engineer Senior Planner Planner Maint/Construction Inspector Code Enforcement Officer ROW Inspector Office Assistant I Senior Engineer Engineering Technician Total FTEs 055/056 - Development Services Division Budget Summary 2017 Actual 1.0 2.0 1.0 1.0 2.0 1.0 0.0 1.0 1.0 0.0 0.0 11.0 2018 Actual 0 0 0 0 0 0 0 0 0 0 0 0 2019 Actual 0 0 0 0 0 0 0 0 0 0 0 0 2020 Budget 0 0 0 0 0 0 0 0 0 0 0 0 2021 Budget 0 0 0 0 0 0 0 0 0 0 0 0 Budget Detail Wages, Payroll Taxes & Benefits $ 843,860 $ 0 $ 0 $ 0 $ 0 Supplies 10,374 0 0 0 0 Services & Charges 227,112 0 0 0 0 Intergovernmental Payments 39,546 0 0 0 0 Total Development Services Division $ 1,120,892 $ 0 $ 0 $ 0 $ 0 Personnel - FTE Equivalents Building Official Building Inspector II Planner Development Service Coordinator Engineering Tech Office Assistant I Permit Facilitator Plans Examiner Senior Plans Examiner Code Enforcement Officer Assistant Planner Total FTEs 057 - Building Division Budget Summary 2017 Actual 1.0 3.0 1.0 1.0 1.0 2.0 2.0 1.0 1.0 1.0 0.0 14.0 2018 Actual 0 0 0 0 0 0 0 0 0 0 0 0 2019 Actual 0 0 0 0 0 0 0 0 0 0 0 0 2020 Budget 0 0 0 0 0 0 0 0 0 0 0 0 2021 Budget 0 0 0 0 0 0 0 0 0 0 0 0 Budget Detail Wages, Payroll Taxes & Benefits $ 1,096,598 $ 0 $ 0 $ 0 $ 0 Supplies 10,413 0 0 0 0 Services & Charges 75,917 0 0 0 0 Total Building Division $ 1,182,928 $ 0 $ 0 $ 0 $ 0 76 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2021 Budget The Parks and Recreation Department is composed of six divisions including Administration, Maintenance, Recreation, Aquatics, Senior Center, and CenterPlace. The overall goal of the department is to provide quality recreation programs and acquisition, renovation, development, operation and maintenance of parks and maintenance of parks and recreation facilities. 000 - Parks Administration Division The Administration Division provides direction and leadership for the Parks and Recreation Department in implementing the goals and objectives of the City Council and facilitates the general upkeep of parks and public areas of the City. Accomplishments for 2020 • Completed Phase 2 of CenterPlace West Lawn Master Plan. • Completed Valley Mission Horse Arena Master Plan. • Completed construction of the Evergreen to Sullivan section of the Appleway Trail. • Completed RCO grant application for the acquisition of the Flora Road property. Goals for 2021 • Complete construction of play equipment, restroom and shelter at Browns Park. • Work with DNR on the partnership for the 100 acre natural area adjacent to Mirabeau Park. • Complete one land acquisition. • Prepare 2022 budget requests to begin developing a Phase of the Horse Arena Master Plan. • Replace siding on Mirabeau Meadows restroom. • Become a Tree City USA. Personnel - FTE Equivalents Parks & Recreation Director Administrative Assistant Total FTEs Budget Summary 2017 Actual 1.0 1.0 2.0 2018 Actual 1.0 1.0 2.0 2019 Actual 1.0 1.0 2.0 2020 Budget 1.0 1.0 2.0 2021 Budget 1.0 1.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 242,763 $ 249,140 $ 266,534 $ 283,127 $ 292,667 Supplies 2,468 2,626 2,778 5,000 5,000 Services & Charges 42,953 36,520 56,899 49,100 58,800 Nonrecurring expenditures 364,346 0 0 0 0 Total Parks Administration Division $ 652,530 $ 288,286 $ 326,211 $ 337,227 $ 356,467 77 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2021 Budget 300 - Maintenance Division The Parks Maintenance Division is responsible for the contracted maintenance and upkeep of our parks and public areas including the Centennial Trail. Budget Detail Supplies Services & Charges Total Maintenance Division Budget Summary 2017 Actual $ 1,625 845,108 2018 Actual $ 414 886,122 2019 Actual $ 381 935,374 2020 Budget $ 3,500 914,000 $ 846,733 $ 886,536 $ 935,755 $ 917,500 2021 Budget $ 3,500 936,503 $ 940,003 301 - Recreation Division The Recreation Division coordinates and facilitates the delivery of recreation programs and service throughout the City and the City's Park system. Accomplishments for 2020 • Provided two outdoor drive-in movies. Continue to provide quality Recreation programs for Spokane Valley Community. • Completed RCO grant application for the acquisition of the Flora Road property. • Foster relationships with Community partners. "Several prior year goals were unable to be completed due to COVID-19. Goals for 2021 • Expand and continue the summer camp for teens. • Provide walking program for community members. • Expand and continue the summer camp for teens. • Continue National Parks and Recreation community celebration at Terrace View Park. • Foster relationships with Community partners. • Enhance Summer Parks Programs Kick -Off events. • Continue with free outdoor movies for the community. Personnel - FTE Equivalents Recreation Coordinator Budget Detail Wages, Payroll Taxes & Benefits Supplies Services & Charges Total Recreation Division Budget Summary 2017 Actual 1.0 $ 95,062 3,976 54,312 $ 153,350 2018 Actual 1.0 $ 128,784 3,968 65,745 $ 198,497 2019 Actual 1.0 $ 152,492 6,368 68,726 $ 227,586 2020 Budget 1.6 $ 181,081 8,650 53,190 $ 242,921 2021 Budget 1.6 $ 230,484 9,150 88,900 $ 328,534 78 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2021 Budget 302 -Aquatics Division The City of Spokane Valley owns three pools: Park Road Pool, Terrace View Pool, and Valley Mission Pool. Services include open swim, swim lessons, swim team and facility rentals. In addition, the City leases a portion of Valley Mission Park to Splashdown Inc. for a water park. The City currently is contracting with the YMCA for all aquatic activities within the City. The YMCA provides the lifeguards and maintains the pools during the season. Accomplishments for 2020 "Prior year goals were unable to be completed due to COVID-19. The pools never opened for 2020. Goals for 2021 • Maintain full summer swimming program. • Maintain Paws in the Pool Program. • Continue to partner with Make A Splash to offer free swim sessions at all pools. • Continue to partner with Make A Splash to offer free water safety clinics at all pools. Budget Summary Budget Detail Supplies Services & Charges Total Aquatics Division 2017 Actual 2018 Actual 2019 Actual $ 42 $ 240 $ 37 474,626 471,427 515,370 2020 Budget 2021 Budget $ 2,000 $ 2,000 130,853 508,053 $ 474,668 $ 471,667 $ 515,407 $ 132,853 $ 510,053 79 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2021 Budget 304 - Senior Center Division The City of Spokane Valley Parks and Recreation Department assumed operational control of the Valley Senior Center in 2003. Accomplishments for 2020 • Worked closely with the Parks & Recreation Director on programs being offered to seniors. • Developed transition plan for new Senior Center staff. • Installed new carpet in the Senior Association office. "Several prior year goals were unable to be completed due to COVID-19. Goals for 2021 • Continue to enhance the resource and referral information at the reception desk to be better equipped to handle calls. • Continue to work with the Board on providing opportunities for Board training. • Improve and enhance relationship between the Recreation Specialist and the Board. • Continue to work with Parks & Recreation Director and Recreation Coordinator on new programs for seniors. Budget Summary Personnel - FTE Equivalents Senior Center Specialist Total FTEs 2017 Actual 1.0 1.0 2018 Actual 1.0 1.0 2019 Actual 1.0 1.0 2020 Budget 0.4 0.4 2021 Budget 0.4 0.4 Budget Detail Wages, Payroll Taxes & Benefits $ 88,210 $ 90,998 $ 17,716 $ 36,347 $ 28,303 Supplies 592 212 0 1,600 1,600 Services & Charges 1,473 870 781 5,500 5,500 Total Senior Center Division $ 90,275 $ 92,080 $ 18,497 $ 43,447 $ 35,403 80 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2021 Budget 305 - CenterPlace Division Construction of Mirabeau Point CenterPlace began in late 2003 and was completed mid -year 2005. The project represented the culmination of eight years of planning and fundraising by Mirabeau Point Inc. and the joint involvement of the City and Spokane County. The approximately 54,000 square foot facility houses the City of Spokane Valley Senior Center, a great room/banquet facility, numerous meeting rooms, multi -purpose rooms and a high tech lecture hall. The facility combines with Mirabeau Meadows Parks and Mirabeau Springs to form a regional focal point for Northeastern Washington and Northern Idaho. Accomplishments for 2020 • Continued to improve Farmers Market event at CenterPlace. • Replaced carpet in Park Admin offices and Rooms 108 and 111. • Completed Phase 2 of the West Lawn Master Plan. "Several prior year goals were unable to be completed due to COVID-19. Goals for 2021 • Update/create a marketing plan to include new West Lawn improvements. • Continue to improve Farmers Market event at CenterPlace. • Add a minimum of two new events to CenterPlace and the West Lawn. • Create new marketing materials for West Lawn venue. • Add new stage fill speakers in the Great Room. • Repair failed pixels in the Great Room Video Wall. • Rebuild Great Room control and system programming. Budget Summary Personnel - FTE Equivalents Customer Relations/Facilities Coordinator Administrative Assistant Office Assistant I Maintenance Worker Total FTEs 2017 Actual 1.0 1.0 1.0 2.0 5.0 2018 Actual 1.0 1.0 1.0 2.0 5.0 2019 Actual 1.0 1.0 1.0 2.0 5.0 2020 Budget 1.0 1.0 1.0 2.0 5.0 2021 Budget 1.0 1.0 1.0 2.0 5.0 Budget Detail Wages, Payroll Taxes & Benefits $ 491,576 $ 440,345 $ 466,281 $ 468,083 $ 542,938 Supplies 81,169 74,498 98,232 67,537 85,537 Services&Charges 297,318 303,321 321,020 281,739 343,739 Nonrecurring Expenditures 1,000 8,255 0 9,500 0 Total CenterPlace Division $ 871,063 $ 826,419 $ 885,533 $ 826,859 $ 972,214 81 Fund: 001 Dept: 090 General Fund General Government Spokane Valley 2021 Budget The General Government Department accounts for those activities that are not specific to the functions of any particular General Fund Department or operation. Expenditures recorded here are composed of City Hall bond payments; information technology equipment and services; capital costs that benefit more than one department; support of agencies external to the City that provide social service programs and economic development services; and transfers to other City funds for property/casualty insurance premiums (Fund #502), park capital projects (Fund #309) and the pavement preservation program (Fund #311). Budget Summary Supplies Employee Recognition -Operating Supplies Office & Operating Supplies Small Tools & Minor Equipment Computer Hardware - Non Capital Computer Software - Non Capital Office & Operating Supplies 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 1,674 $ 2,975 $ 3,156 $ 2,700 $ 3,500 527 432 0 0 0 3,030 2,907 1,746 5,600 7,000 46,050 24,674 36,414 46,700 31,000 11,249 8,417 2,979 35,300 30,200 8,900 4,242 4,309 9,700 9,700 71,430 43,646 48,604 100,000 81,400 Other Services & Charges Professional Services - Misc. Studies 81,667 173,310 72,359 218,000 218,000 Accounting & Auditing 83,684 86,302 92,353 95,000 97,000 Postage 0 367 2,974 2,500 2,500 Telephone Service 11,205 12,319 12,801 12,500 13,000 Cell Phones 1,649 2,297 1,561 3,000 2,000 Internet Service 7,696 8,639 8,793 9,000 9,600 Taxes and Assessments 912 781 0 1,000 1,000 Electricity 0 1,462 0 0 0 City Wide Records Management 0 0 0 10,000 0 Sewer 523 949 91 0 0 Facility Repairs & Maintenance 4,003 8,508 0 5,000 0 Professional Services 0 1,400 762 0 1,500 Equip Repair & Maint-Hardware Support 32,936 26,572 27,859 32,200 24,850 IT Support 18,716 30,312 37,474 27,500 18,000 Software Licenses & Maintenance 91,463 86,169 122,478 91,200 124,550 Merchant Charges (Bankcard Fees) 186 226 300 500 500 Network Infrastructure Access 4,732 4,714 5,184 5,000 6,000 Equipment Rental 4,264 4,264 4,267 4,300 4,300 Interfund Vehicle Lease 1,000 500 500 500 500 Printing & Binding 0 646 623 600 650 Miscellaneous Services 4,919 6,992 7,859 7,000 7,000 General Operating Leases: Computer 57,556 53,894 67,179 55,000 70,000 Economic Development -Site Selector 9,373 10,897 0 11,000 0 Outside Agencies- Social Svc & Econ. Dev. 91,924 82,381 0 182,000 182,000 Professional Services - Economic Dev. 0 0 765 0 1,000 Professional Services - Social Services 55,911 66,251 174,664 0 0 Alcohol Treatment: Liquor Excise Tax 9,077 9,594 10,477 9,600 10,500 Alcohol Treatment: Liquor Profits 15,900 15,725 15,620 16,000 16,000 $ 589,297 $ 695,472 $ 666,943 $ 798,400 $ 810,450 (continued to next page) 82 Fund: 001 Dept: 090 General Fund General Government Spokane Valley 2021 Budget (continued from previous page) Intergovernmental Services Election Costs Voter Registration Taxes and assessments Spokane County Air Pollution Authority Capital Outlays Computer Hardware - Capital Debt Service: Principal Interest and Other Debt Service Costs Interfund Payments for Service Transfer out - #204 (City Hall bond payment) Transfer out - #309 (park capital projects) Transfer out - #311 (pavement preservation) Transfer out - #501 (CenterPlace kitchen reserve) Transfer out - #502 (risk management) Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 69,973 $ 91,980 $ 75,432 $ 110,000 $ 110,000 86,932 20 94,787 100,000 100,000 0 0 12,020 12,100 12,100 130,928 134,493 137,219 140,411 150,830 287,834 226,493 319,458 362,511 372,930 7,387 125,799 0 57,500 7,387 125,799 0 57,500 600 600 600 600 397,350 399,350 401,250 401,450 160,000 160,000 160,000 160,000 953,200 962,700 972,300 982,023 36,600 36,600 36,600 36,600 350,000 370,000 390,000 410,000 1,897,150 1,928,650 1,960,150 1,990,073 30,000 30,000 600 401,500 160,000 991,843 36,600 425,000 2,014,943 Miscellaneous SCRAPS pass through 1,145 1,137 1,172 1,300 1,200 Leasehold Excise Tax Pass -Through 778 544 530 800 800 1,923 1,681 1,702 2,100 2,000 Subtotal Recurring Expenditures $ 2,855,621 $ 3,022,341 $ 2,997,457 $ 3,311,184 $ 3,312,323 Nonrecurring/Nonrecurring Capital City Hall lease payment (2017 final year) 438,565 0 0 0 0 IT capital replacement 26,386 0 0 0 10,000 Heavy Duty Mach. & Equip.- City Hall Generator 0 0 158,007 44,993 0 COVID-19 related expenditures 0 0 0 4,352,400 0 Computer Hardware - Capital 111,450 23,877 106,517 190,000 159,000 Computer Software - Capital 0 0 0 0 43,800 Transfer out - #101 0 0 0 350,200 1,859,600 Transfer out - #122 (Replenish Winter Weather Resen 258,000 490,000 120,000 500,000 0 Transfer out - #309 (Park Capital) 0 423,206 1,174,369 2,907,879 0 Transfer out - #312 (capital reserve fund) 3,003,929 3,795,429 7,109,300 0 0 Transfer out - #314 (RR Grade Separation) 1,200,000 0 0 0 0 Transfer out - #501 (new code enf. vehicle) 0 0 0 30,000 0 5,038,330 4,732,512 8,668,193 8,375,472 2,072,400 Total Govemmental Division $ 7,893,951 $ 7,754,852 $ 11,665,650 $ 11,686,656 $ 5,384,723 83 Fund: 101 Street Fund Spokane Valley 2021 Budget The Street Fund was established to account for the activities associated with the provision of efficient and safe movement of both motorized and non -motorized vehicles, as well as pedestrians within the limits of the City, and coordinate convenient interconnect to the regional transportation system. Maintenance work includes snow and ice control, street pavement repairs, traffic signals and signs, landscaping and vegetation control, and many other street maintenance and repair activities. Accomplishments for 2020 • Implemented new contracts with private contractors for street maintenance services. • Continue on -going roadway and bridge maintenance and repairs. • Finalized the 6-year Bridge Maintenance Program and begin its implementation. • Implemented identified signal timing plans for the Argonne Corridor. • Collaborated with WSDOT and Spokane County on traffic signal evaluation and monitoring. • Began the process of implementing Urban Growth Area Traffic Mitigation Fees for major arterial corridors. • Completed the update of the Pavement Management and Preservation program evaluation system. Goals for 2021 • Implement new contracts with private contractors for street maintenance services. • Continue on -going roadway and bridge maintenance and repairs. • Continue evaluations of traffic signal timings for the Pines, Sullivan, and Sprague corridors. • Continue implementing Urban Growth Area Traffic Mitigation Fees for major arterial corridors. • Implement the 6-year Bridge Maintenance Program, prioritizing bridges requiring significant upgrades. • Finalize a comprehensive Pavement Preservation Program, including funding source identification. • Work with other departments in developing a city-wide, comprehensive Asset Management Program, which will include transportation operations facilities. Personnel - FTE Equivalents Assistant Engineer Construction Inspector Engineering Tech II Maintenance/Construction Inspector Planning Grants Engineer Public Works Superintendent Senior Engineer - Traffic Traffic Engineer Total FTEs Budget Summary 2017 Actual 1.0 0.0 0.0 2.35 0.375 1.0 1.0 0.0 5.725 2018 Budget 1.0 0.0 0.0 2.35 0.375 1.0 1.0 0.0 5.725 2019 Budget 0.3 1.5 0.3 2.35 0.375 1.0 1.0 1.0 7.725 2020 Budget 0.00 1.50 0.25 2.35 0.375 1.0 1.0 1.0 7.475 2021 Budget 0.0 1.50 * 0.25 * 2.35 * 0.375 * 1.0 1.0 1.0 7.475 (continued to next page) • These positions are budgeted partially to the Street Fund with the balance budgeted as a part of the General Fund, Capital Projects Funds, and the Stormwater Fund #402. 84 Fund: 101 Street Fund Spokane Valley 2021 Budget (continued from previous page) Revenues Utility Tax Motor Vehicle Fuel Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Miscellaneous Insurance proceeds Budget Summary 2017 Actual $ 1,892,906 2,032,175 98,994 136,112 7,844 0 85,074 2018 Actual $ 1,758,370 2,063,390 133,525 94,571 17,503 22,265 11,711 2019 Actual $ 1,563,981 2,018,186 132,637 84,704 4,022 8,063 15,848 Total revenues 4,253,105 4,101,335 3,827,441 Nonrecurring Revenues Grant Proceeds 1,340 0 0 0 0 Utility Tax Recovery 138,896 160,254 0 0 0 Transfers in - #122 0 0 620,000 350,200 1,859,600 Transfers in - #312 0 0 907,544 1,364,706 0 Total Nonrecurring Revenues 140,236 160,254 1,527,544 1,714,906 1,859,600 2020 Budget $ 1,521,000 1,715,000 113,000 70,000 17,000 10,000 0 3,446,000 2021 Budget $ 1,431,000 2,062,000 130,600 70,000 4,000 10,000 0 3,707,600 Expenditures Wages, Payroll Taxes & Benefits 811,264 774,688 943,237 1,059,613 1,127,920 Supplies 98,747 94,918 100,504 146,050 156,050 Services & Charges 2,125,091 2,014,797 2,599,034 2,426,467 2,525,828 Snow Operation 637,358 580,166 1,033,218 543,776 751,652 Intergovernmental Payments 748,291 824,175 725,008 922,000 935,000 Transfers out - #001 39,700 39,700 0 0 0 Transfers out - #311 (pavement preservation) 67,342 67,342 0 0 0 Interfund Vehicle Lease -#501 (non -plow) 23,250 21,250 21,250 14,500 10,250 Interfund Vehicle Lease -#501 (plow replace) 77,929 77,929 77,929 48,500 60,500 Nonrecurring Expenditures Small tools & minor equipment 0 0 25,339 0 0 Construction 0 21,216 0 0 0 Traffic control improvements 0 17,252 45,329 0 0 Capital Equipment 0 0 7,295 0 0 Traffic Control Devices- Repair & Maint 0 10,478 5,549 0 0 Battery Backups for Intersections 15,579 0 0 0 0 Total Nonrecurring expenditures 4,644,551 4,543,911 5,583,692 5,160,906 5,567,200 Revenues over (under) expenditures (251,210) (282,322) (228,707) 0 0 Beginning fund balance 1,318,504 1,067,294 784,972 556,265 556,265 Ending fund balance $ 1,067,294 $ 784,972 $ 556,265 $ 556,265 $ 556,265 85 Fund: 103 Paths & Trails Fund Spokane Valley 2021 Budget The State of Washington collects a $0.494 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2020 the Municipal Research and Services Center estimates the distribution back to cities will be $21.24 per person. Based upon a City of Spokane Valley population of 97,490 (per the Washington State Office of Financial Management on April 1, 2020) we anticipate the City will collect $2,070,700 in 2020. RCW 47.030.050 specifies that 0.42% of this tax must be expended for the construction of paths and trails and based upon the 2020 revenue estimate this computes to $8,700. The balance or $2,062,000 will be credited to Fund #101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails within the City. Because the cost of such projects is typically much greater than the funds generated in a single year, we typically leave the fund balance untouched until an adequate fund balance is available. The City transferred $50,000 in 2014 and $9,300 in 2016 and $50,000 in 2018 to Parks Capital Projects Fund #309 to be applied towards the Appleway Trail projects. Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest Total revenues Expenditures Capital Outlay Transfers out- #309 Total expenditures Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 8,571 $ 8,703 $ 8,512 $ 8,600 $ 8,700 369 390 186 400 200 8,940 9,092 8,698 9,000 8,900 0 0 0 0 0 0 50,000 0 0 0 0 50,000 0 0 0 Revenues over (under) expenditures 8,940 (40,908) 8,698 9,000 8,900 Beginning fund balance 37,384 46,325 5,417 14,115 23,115 Ending fund balance $ 46,325 $ 5,417 $ 14,115 $ 23,115 $ 32,015 86 Fund: 104 Hotel/Motel Tax - Tourism Facilities Fund Spokane Valley 2021 Budget The Hotel/Motel Tax - Tourism Facilities Fund accounts for the receipt and expenditure of a special excise tax of 1.3% on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for capital expenditures for acquiring, constructing, making improvements to or other related capital expenditures for large sporting venues, or venues for tourism -related facilities, which facilities generate overnight guests at lodging facilities subject to the taxes imposed. Revenues Hotel/Motel Tax Investment Interest Transfers in - #105 Total revenues Expenditures Capital Outlay Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 400,509 $ 415,295 $ 454,283 $ 213,000 $ 213,000 6,854 24,182 43,590 24,000 24,000 250,000 250,000 275,000 0 0 657,363 689,477 772,873 237,000 237,000 0 0 0 0 0 0 0 0 0 0 657,363 689,477 772,873 237,000 237,000 571,232 1,228,595 1,918,072 2,690,945 2,927,945 $ 1,228,595 $ 1,918,072 $ 2,690,945 $ 2,927,945 $ 3,164,945 Fund:105 Hotel/Motel Tax Fund Spokane Valley 2021 Budget The Hotel/Motel Fund accounts for the receipt and expenditure of a special excise tax of 2% on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition or operation of tourism -related facilities, and marketing of special events and festivals designed to attract tourists. Revenues Hotel/Motel Tax Investment Interest Total revenues Expenditures Tourism Promotion Transfers out- #001 Transfers out- #104 Total expenditures Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 615,980 $ 646,975 $ 743,852 $ 346,000 $ 346,000 3,549 7,058 8,459 6,000 6,000 619,529 654,033 752,311 352,000 352,000 351,674 321,934 207,000 319,000 680,000 15,778 26,037 30,000 30,000 30,000 250,000 250,000 275,000 0 0 617,452 597,971 512,000 349,000 710,000 Revenues over (under) expenditures 2,077 56,062 240,311 3,000 (358,000) Beginning fund balance 219,790 221,867 277,929 518,240 521,240 Ending fund balance $ 221,867 $ 277,929 $ 518,240 $ 521,240 $ 163,240 87 Fund: 106 Solid Waste Fund Spokane Valley 2021 Budget In 2003, the City of Spokane Valley entered into an interlocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011, that agreement was extended through November 16, 2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable, sustainable, and environmentally responsible, in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc. Services provided under the contract were effective November 17, 2014, and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of $125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city, including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of $1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. In June 2017, the City entered a contract with Waste Management for the collection of garbage, recyclables, and compostables for the period of April 1, 2018 through March 31, 2028 with the option of two additional two-year extensions. Terms of the contract require Waste Management to pay the City a one-time fee of $47,500 upon contract execution to reimburse the City for the costs of procuring the contract. Waste Management is also required to pay the City an monthly administrative fee of 12.5% of gross receipts, which is estimated to be approximately $1,500,000 in 2021. During the years of 2013 and 2014, the General Fund #001 funded various studies and fees related to the solid waste program and transferred $60,000 to the Solid Waste Fund #106 for the purpose of providing information materials and marketing necessary to inform residents and businesses of the change in solid waste transfer, transport and disposal. The total amount paid out of the General Fund for these expenditures was $202,121. Beginning in 2015 the Solid Waste Fund will reimburse the General Fund for these costs over a 5-year period, which equated to an annual payment of $40,425 in the years 2015 through 2018, and a final payment of $40,422 in 2019. Revenues Administrative fees Solid Waste Road Wear Fee Investment interest Total revenues Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 172,550 $ 182,900 $ 252,396 $ 225,000 $ 225,000 59,389 1,108,028 1,513,532 1,500,000 1,500,000 1,334 12,487 24,752 12,000 12,000 233,273 1,303,415 1,790,680 1,737,000 1,737,000 Expenditures Education & Contract Administration 81,288 22,313 33,407 237,000 237,000 Transfers out - #001 40,425 40,425 40,422 0 0 Transfers out - #311 0 1,000,000 1,608,028 1,513,532 1,500,000 Total expenditures 121,713 1,062,738 1,681,857 1,750,532 1,737,000 Revenues over (under) expenditures 111,560 240,677 108,823 (13,532) 0 Beginning fund balance 79,122 190,682 431,359 540,182 526,650 Ending fund balance $ 190,682 $ 431,359 $ 540,182 $ 526,650 $ 526,650 88 Fund: 107 PEG Fund Spokane Valley 2021 Budget Under the City's cable franchise, the franchise grantee remits to the City as a capital contribution in support of Public Education Government (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. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include in part the set up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. Revenues Comcast PEG contribution Investment interest Total revenues Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 76,471 $ 81,322 $ 79,498 $ 79,000 $ 79,000 1,676 971 2,097 0 0 78,147 82,293 81,595 79,000 79,000 Expenditures PEG Reimbursement - CMTV 0 38,955 37,256 39,500 39,500 New City Hall Council Chambers 208,714 0 0 0 0 Capital Outlay 54,937 13,344 915 45,500 33,500 Total expenditures 263,651 52,299 38,171 85,000 73,000 Revenues over (under) expenditures Beginning fund balance Ending fund balance (185,504) 29,994 43,424 (6,000) 6,000 240,341 54,837 84,831 128,255 122,255 $ 54,837 $ 84,831 $ 128,255 $ 122,255 $ 128,255 Fund: 108 Affordable & Supportive Housing Sales Tax Spokane Valley 2021 Budget In the year 2020, the Council authorized the City to collect the affordable and supportive sales tax, which is a rebate of the State sales tax to cities and counties. The amount received by the City is up to 0.0146% of the taxable retail sales within the City capped at the 2019 fiscal year taxable retail sales. The Department of Revenue has estimated this capped distribution to be $193,000 for the City. The City will receive these revenues for 20 years, and the revenues may only be used to support affordable housing within the City or for rental assistance as outlined in RCW 82.14.540. Budget Summary 2017 Actual Revenues Affordable & Supportive Housing Sales Tax $ Investment Interest Total revenues Expenditures Professional Services Total expenditures 2018 Actual 0 $ 0 0 2019 Actual 0 $ 0 0 2020 Budget 2021 Budget 0 $ 144,750 $ 193,000 0 0 0 0 144,750 193,000 0 0 0 0 0 0 0 0 0 0 Revenues over (under) expenditures 0 0 0 144,750 193,000 Beginning fund balance 0 0 0 0 144,750 Ending fund balance $ 0 $ 0 $ 0 $ 144,750 $ 337,750 89 Fund: 120 CenterPlace Operating Reserve Fund Spokane Valley 2021 Budget The CenterPlace Operating Reserve Fund was established as a result of a covenant related to the issuance of limited tax general obligation bonds initially issued in 2003 and refunded in 2014. The bonds were issued for the purpose of constructing the CenterPlace facility. As a part of the bond issuance the City agreed to establish a $300,000 operating reserve account that could be used to make debt service payments on the bonds and/or pay for operating expenses of CenterPlace. If at any time the City were to draw on these reserves it would have to prepare and follow a plan for reinstatement of those funds drawn. This reserve is required to be in place for the life of the bonds which run through December 1, 2033. Revenues Investment Interest Transfers in Total revenues Expenditures Operations Total expenditures Budget Summary 2017 Actual $ 2018 Actual 0 $ 0 0 2019 Actual 0 $ 0 0 2020 Budget 0 $ 0 0 2021 Budget 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Revenues over (under) expenditures 0 0 0 0 0 Beginning fund balance 300,000 300,000 300,000 300,000 300,000 Ending fund balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 90 Fund: 121 Service Level Stabilization Reserve Fund Spokane Valley 2021 Budget The City has committed to maintaining an ending fund balance in the General Fund of at least 50% of recurring expenditures which is equivalent to 6-months of operations. The Service Level Stabilization Reserve Fund serves as an emergency source of temporary financing to the General Fund in the event a downturn in the local economy resulted in a reduction of revenues that would otherwise compromise either the General Fund's minimum 50% reserve balance or historical levels of service. If an event such as a downturn in the economy resulted in the General Fund reserves dropping below 50% of recurring expenditures, then the Service Level Stabilization Reserve Fund could be drawn against to maintain the fund balance minimum. The Service Level Stabilization Reserve Fund will not be reduced to less than 60% of the current $5.5 million balance, or $3.3 million, without Council approval. If Coucil should deem this necessary, the City will then first replenish Fund #121 to at least $3.3 million before any annual General Fund transfers are made to the Capital Reserve Fund #312.During 2018, this reserve balance was capped at $5.5 million and any additional interest earned was accumulated in the General Fund. This represents a Fiscal Policy of the City that is also stated in the City Manager's 2021 Budget Message located near the front of this budget document. Revenues Investment Interest Transfers in Total revenues Expenditures Operations Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2017 Actual 2018 Actual $ 16,575 $ 0 21,636 2019 Actual 0 $ 0 0 2020 Budget 0 $ 0 0 2021 Budget 0 $ 0 0 0 0 0 0 0 0 0 0 16,575 0 0 0 0 0 0 0 0 0 5,483,425 5,500,000 5,500,000 5,500,000 5,500,000 $ 5,500,000 $ 5,500,000 $ 5,500,000 $ 5,500,000 $ 5,500,000 Fund: 122 Winter Weather Reserve Fund Spokane Valley 2021 Budget The Winter Weather Reserve Fund was established through Ordinance No. 05-018 to provide an emergency reserve for use during unusually harsh winters and storms where the Street Fund #101 budget and fund balance are inadequate to accommodate the amount of related street maintenance, including but not limited to snow plowing, sanding, and deicing, that may be necessary. In the event the City draws against this fund in any given winter, we will strive to replenish the balance back to approximately $500,000 through subsequent years' transfers. Due to the uncertainty of when this fund might be drawn upon we actually budget the same $500,000 in both 2020 and 2021 even though we recognize there exists only $500,000 to address this issue if it should arise. Revenues Investment Interest Transfers in - #001 FEMA Grant Proceeds Total revenues Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 3,712 $ 5,353 $ 9,899 $ 5,400 $ 1,900 258,000 490,000 120,000 500,000 0 3,170 0 10,367 0 0 264,882 495,353 140,266 505,400 1,900 Expenditures Transfer out - #101 0 0 620,000 0 0 Street Maintenance Expenditures 500,000 0 0 500,000 500,000 Total expenditures 500,000 0 620,000 500,000 500,000 Revenues over (under) expenditures (235,118) 495,353 (479,734) 5,400 (498,100) Beginning fund balance 242,835 7,717 503,070 23,336 528,736 Ending fund balance $ 7,717 $ 503,070 $ 23,336 $ 28,736 $ 30,636 91 Fund: 204 Limited Tax General Obligation (LTGO) Bond - Debt Service Fund Spokane Valley 2021 Budget This fund is used to account for the accumulation of resources for, and the payment of limited tax general obligation (LTGO) bonds also referred to as councilmanic or non -voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non -voted general obligations. In 2003 the City issued $9,430,000 in LTGO bonds, the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond payments (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2021, the outstanding balance on this portion of the bond issue will be $4,100,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax (Funds #301 and #302). At January 1, 2021, the outstanding balance on this portion of the bond issue will be $450,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which will be used to finance the construction of a new City Hall building along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30-year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2021, the outstanding balance on the bond issue will be $6,570,000. Revenues Spokane Public Facilities District Transfers in - #001 Transfers in - #301 Transfers in - #302 Total revenues Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 379,750 $ 414,050 $ 432,150 $ 459,500 $ 480,800 397,350 399,350 401,250 401,450 401,500 79,426 82,000 82,475 80,375 80,775 79,425 82,000 82,475 80,375 80,775 935,951 977,400 998,350 1,021,700 1,043,850 Expenditures Debt Service Payment - CenterPlace 379,750 414,050 432,150 459,500 480,800 Debt Service Payment - Roads 162,900 164,000 164,950 160,750 161,550 Debt Service Payments - City Hall/LTGO'16 397,350 399,350 401,250 401,450 401,500 Total expenditures 940,000 977,400 998,350 1,021,700 1,043,850 Revenues over (under) expenditures (4,049) 0 0 0 0 Beginning fund balance 4,049 0 0 0 0 Ending fund balance 0 0 0 0 0 92 Fund: 301 REET 1 Capital Projects Fund Spokane Valley 2021 Budget This fund is used to account for the collection and expenditures of the first one -quarter of one -percent real estate excise tax (REET 1) that is authorized through RCW 82.46. This quarter percent must be expended for purposes identified in the capital facilities plan element of our comprehensive plan. RCW 82.46.010(6), defines "capital projects" as: those public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative and judicial facilities. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund #303, Pavement Preservation Fund #311, and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in the LTGO Debt Service Fund #204. Revenues REET 1 - Taxes Investment Interest Total revenues Expenditures Transfers out - #204 Transfers out - #303 Transfers out - #311 (pavement preservation) Transfers out - #314 (Barker Grade Separation) Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2017 Actual $ 1,503,787 21,598 1,525,385 79,426 294,558 660,479 111,941 2018 Actual $ 1,968,317 47,046 2,015,363 82,000 901,287 685,329 (8,147) 1,146,404 1,660,469 2019 Actual $ 1,695,344 61,382 1,756,726 2020 Budget $ 1,000,000 35,000 1,035,000 2021 Budget $ 1,000,000 25,000 1,025,000 82,475 80,375 80,775 517,107 872,605 316,620 734,300 772,639 827,278 104,918 869,008 0 1,438,800 2,594,627 1,224,673 378,981 354,894 317,926 (1,559,627) (199,673) 1,746,393 2,125,374 2,480,268 2,798,194 1,238,567 $ 2,125,374 $ 2,480,268 $ 2,798,194 $ 1,238,567 $ 1,038,894 93 Fund: 302 REET 2 Capital Projects Fund Spokane Valley 2021 Budget This fund is used to account for the collection and expenditures of the second one -quarter of one -percent real estate excise tax (REET 2) that is authorized through RCW 82.46. This quarter percent may only be levied by cities that are planning under the Growth Management Act and may only be expended for purposes identified in the capital facilities plan element of their comprehensive plan. RCW 82.46.035(5) defines "capital projects" as: public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. Noteworthy here is that acquisition of land for parks is not a permitted use of REET 2 receipts, although it is a permitted use for street, water and sewer projects. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund #303, Pavement Preservation Fund #311, and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in the LTGO Debt Service Fund #204. Revenues REET 2 - Taxes Investment Interest Total revenues Expenditures Transfers out - #204 Transfers out - #303 Transfers out - #311 (pavement preservation) Transfers out - #314 Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2017 Actual $ 1,503,787 25,594 1,529,381 79,425 81,613 660,479 0 821,517 2018 Actual $ 1,968,317 61,879 2,030,196 82,000 1,031,071 685,329 0 2019 Actual $ 1,695,344 80,784 1,776,128 82,475 (192,297) 734,300 0 1,798,400 624,478 707,864 231,796 1,151,650 2,300,560 3,008,424 3,240,220 $ 3,008,424 $ 3,240,220 $ 4,391,870 2020 Budget $ 1,000,000 35,000 1,035,000 80,375 518,199 772,638 0 2021 Budget $ 1,000,000 25,000 1,025,000 80,775 1,662,684 827,279 1127387 1,371,212 3,698,125 (336,212) (2,673,125) 4,391,870 4,055,658 $ 4,055,658 $ 1,382,533 94 Fund: 303 Street Capital Projects Fund Spokane Valley 2021 Budget The Street Capital Projects Fund accounts for monies used to finance street construction and reconstruction projects adopted in the City's 6-year Transportation Improvement Plan (TIP). Revenues to finance the projects comes from a combination of State and Federal Grants, which typically cover upwards of 80% of projects costs, with the City match portion coming from transfers from the REET 1 Capital Projects Fund #301, REET 2 Capital Projects Fund #302, and sometimes Stormwater Management Fund #402. Budget Summary 2017 Actual Revenues Grant Proceeds Developer Contribution Miscellaneous Transfers in -#301 Transfers in - #302 Transfers in - #312 - Euclid Ave - Flora to Barker Transfers in - #312 - 8th & Carnahan Intersection Transfers in - #312 - Barker Corridor Transfers in -#312 - Garland Ave Total revenues Expenditures 000 Construction -Street Lighting 069 Park Rd Reconstruction (Repay grant) 123 Mission Ave -Flora to Barker 141 Sullivan & Euclid PCC 142 Broadway @ Argonne/Mullan 155 Sullivan Rd W Bridge Replacement 166 Pines Rd (SR27) & Grace Ave. Intersect study 167 City wide safety improvements 201 ITS Infill Project Phase 1 205 Sprague/Barker Intersection Improvement 211 Sullivan Trent to Wellesley 221 McDonald Rd Diet (16th to Mission) 222 Citywide Reflective Signal Backplates 238 Mirabeau Pkwy & Pines (SR-27) Traffic Signal 239 Bowdish Sidewalk - 8th to 12th $ 3,561,989 62,244 0 294,701 81,613 455,465 1,464,381 218,299 0 6,138,693 2018 Actual $ 6,562,793 33,032 136 901,287 1,031,071 (1,251,465) 241,466 428,774 33,938 7,981,032 2019 Actual $ 2,783,332 228,953 586 517,107 (192,297) 0 0 1,999,130 0 5,336,811 2020 Budget $ 5,940,505 1,311,059 0 872,605 518,199 0 0 495,291 1,286,436 10,424,095 2021 Budget $ 6,843,308 53,703 0 316,620 1,662,684 0 0 0 0 8,876,315 O 0 71,486 0 0 O 0 285,164 0 0 250,119 3,081,873 30,696 0 0 1,512,193 14,722 0 0 0 3,702 1,956,617 14,544 0 0 722,384 898 0 0 0 60,574 567,749 1,444 0 0 3,055 0 0 0 0 7,006 411,320 1,397 0 0 O 0 24,770 195,499 329,453 (17,811) 0 0 0 0 675 0 0 0 0 38,355 15,548 0 0 0 (21) 0 0 0 0 389,898 0 0 0 0 (continued to next page) 95 Fund: 303 Street Capital Projects Fund Spokane Valley 2021 Budget (continued from previous page) 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget Expenditures, continued 247 8th & Carnahan Intersection Improvements 218,299 428,774 (155) 0 0 249 Sullivan/Wellesley Intersection 15,112 90,162 93,804 150,000 1,020,522 250 9th Ave. Sidewalk 181,053 0 0 0 0 251 Euclid Ave. - Flora to Barker 2,601,774 293,956 5,111 0 0 258 32nd Ave Sidewalk - SR27 to Evergreen 32,157 428,840 0 0 0 259 N. Sullivan Corridor ITS Projects (PE start 201 96,567 58,713 27,581 921,349 0 263 Citywide Signal Backplates 143 96,218 0 0 0 264 8th Ave Sidewalk 11,606 355,465 0 0 0 265 Wellesley Sidewalk Project 20,727 26,314 542,277 0 0 267 Mission Ave Sidewalk 0 34,453 279,348 136,075 11,310 273 Barker/I-90 Interchange 0 0 331,345 568,655 0 275 Barker Rd Widening - River to Euclid 0 29,144 50,942 1,978,395 1,132,320 276 Barker Rd Widening - Euclid to Garland 0 33,938 2,210,790 380,269 0 278 Wilbur Rd Sidewalk - Boone to Broadway 0 16,631 400,578 0 0 279 Knox Ave Sidewalk - Hutchinson to Sargent 0 11,687 339,689 0 0 281 Highland Estates Connector 0 27,661 17,396 0 0 285 Indiana Ave Pres - Evergreen to Sullivan 0 0 0 354,060 7,210 287 University Pres - Dishman-Mica to 16th 0 0 80,908 0 0 291 Adams Sidewalk Infill 0 0 22,666 444,645 0 292 Mullan preservation : Broadway -Mission 0 0 3,667 0 0 293 2018 CSS Citywide Reflective Signal BP 0 0 6,849 99,000 74,250 294 Citywide Reflective Signal Post Panels 0 0 3,661 47,775 17,875 295 Garland Avenue Extension 0 0 407,628 2,492,371 0 299 Argonne Rd Concrete Pvmt Indiana to Mont 0 0 33,512 32,000 2,392,450 300 Pines & Mission Intersection Improvement 0 0 11,993 516,000 498,000 301 Park & Mission Intersection Improvement 0 0 508 152,992 693,000 302 Ella Sidewalk - Broadway to Alki 0 0 21,901 371,760 0 303 S. Conklin Sidewalk 0 0 14,950 124,125 0 310 Sullivan Rd Overcrossing UP RR Deck Repl 0 0 0 337,625 317,625 313 Barker Rd/Union Pacific Crossing 0 0 0 121,500 1,312,500 318 Wilbur Sidewalk - Boone to Mission 0 0 0 0 50,000 320 Sullivan Preservation - Sprague to 8th 0 0 0 0 19,800 Contingency 0 0 0 1,000,000 1,000,000 Total expenditures 6,147,567 7,980,683 5,336,450 10,424,095 8,876,315 Revenues over (under) expenditures (8,874) 349 361 0 0 Beginning fund balance 75,566 66,692 67,041 67,402 67,402 Ending fund balance 66,692 67,041 67,402 67,402 67,402 96 Fund: 309 Park Capital Projects Fund Spokane Valley 2021 Budget The Park Capital Projects Fund was created to account for park related capital improvements. The source of financing typically consists of an annual transfer from the General Fund #001; however, in some years the City will utilize money set aside for capital projects in other funds. This has occurred with transfers in from the Paths and Trails Fund #103 and the Capital Reserve Fund #312, which have been applied towards various sections of the Appleway Trail project and frontage improvements at Balfour Park. Revenues Grant Proceeds FEMA Grant Proceeds - Windstorm Transfers in - #001 (General Fund) Transfers in - #103 (Paths & Trails) Transfers in - #312 (Capital Reserve) Investment Interest Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 1,657,548 $ 1,605,948 $ 1,114,049 $ 1,605,583 $ 480,530 0 0 0 0 0 160,000 583,206 1,334,369 2,992,879 160,000 0 50,000 0 0 0 277,437 289,661 262,599 119,373 565,150 215 183 85 0 0 Total revenues 2,095,200 2,528,998 2,711,102 4,717,835 1,205,680 Expenditures 227 Appleway Trail (Pines to Evergreen) 1,816,928 14,860 0 0 0 237 Appleway Trail (Sullivan to Corbin) 129,986 2,127,384 16,791 0 0 242 Browns Park Splashpad 11,222 0 0 0 0 261 Edgecliff Park Splashpad 122,577 0 0 0 0 268 Appleway Trail (Evergreen to Sullivan) 0 29,479 756,028 1,609,376 0 270 CenterPlace outdoor venue - Phase 1 0 204,302 0 0 0 271 Brown Park lighting and pathway 0 22,602 0 0 0 274 Park signs (Sullivan, Park Rd, Balfour) 0 13,837 0 0 0 280 Appleway Trail Amenities (Univ-Pines) 0 19,894 679,259 0 0 282 Browns Park volleyball courts 0 170,879 1,249 0 0 283 Electrical Upgrade Mirabeau Point Park 0 7,693 0 0 0 288 Heart of the Valley Sculpture 0 4,975 0 0 0 296 Browns Park improvements 0 0 1,038,701 121,298 0 304 CenterPlace west lawn improvements - Ph. 2 0 0 113,419 1,901,581 0 305 CenterPlace roof 0 0 9,288 810,000 0 306 Discovery Playground Surface Repair 0 0 20,061 0 0 307 Edgecliff Park Swing sets 0 0 36,973 0 0 314 Balfour Park frontage improvements 0 0 0 59,850 565,150 315 Browns Park improvements 2020 0 0 0 62,995 499,805 316 Balfour Park improvements - Ph 1 0 0 0 11,000 0 Install stage fill speakers Great Room 0 0 0 0 6,346 Repair failed pixels Great Room 0 0 0 0 6,505 Reprogram Great Room AN System 0 0 0 0 12,499 Repair/replace siding at Mirabeau restroom 0 0 0 0 30,000 Transfers out - #312 (park land acquisition) 0 0 0 200,000 0 Total expenditures 2,080,713 2,615,905 2,671,769 4,776,100 1,120,305 Revenues over (under) expenditures 14,487 (86,907) 39,333 (58,265) 85,375 Beginning fund balance 111,714 126,201 39,294 78,627 20,362 Ending fund balance $ 126,201 $ 39,294 $ 78,627 $ 20,362 $ 105,737 97 Fund: 310 Civic Facility Capital Projects Fund Spokane Valley 2021 Budget The Civic Building Capital Projects Fund was initially set-up to accumulate resources to ultimately acquire or construct a City Hall building. The initial sources of revenue to set-up the fund reserves were transfers from the General Fund during 2005 through 2007, and as recently as December 31, 2009, this fund had a fund balance of $5,828,600. During 2010 and 2011 the City determined that street repairs and reconstruction represented a more immediate City need and opted to expend nearly $2,000,000 of the fund balance for these projects. The projects themselves were part of a septic tank elimination program (STEP) initiated by Spokane County that resulted in the installation of sewer lines down many City streets. At that time the City decided to completely reconstruct the effected streets rather than patch them. In 2012 the City used this fund to finance a variety street related capital projects as well as the $2.5 million acquisition of an 8.4 acre parcel of land on Sprague Avenue that is adjacent to Balfour Park. Partially offsetting the cost of the land acquisition was the subsequent sale of 2.82 acres of this parcel to the Spokane County Library District who had planned to construct a library building consisting of no less than 30,000 square feet. In order for the Library District to actually construct a new building on this site they first had to have a successful voted bond issue to provide the necessary financing. In the event the Library District is unable to pass a bond, they may sell the 2.82 acres parcel back to the City for the original purchase price of $839,285. An amendment was made to the interlocal agreement in October 2017 which extended the agreement through October 2022 with the option to extend through October 2024. Through this amendments, the City also agreed to contribute $1.3 million, of which the $839,285 would be part, in frontage and/or joint site improvements on the Library site. In 2015 the General Fund began to make two annual transfers to this fund that were each related to the eventual construction of a new City Hall facility. These transfers ended after 2016: • The first transfer in the amount of $72,500, when added to the City's $434,600 annual lease payment for space in its current space totals $507,100 which was the amount we anticipated our annual bond repayment would be if we were to issue approximately $8,000,000 of limited tax general obligation bonds with a 2% issue cost over 30-years at 4.50%. • The second transfer was our estimate of the annual operating costs of a City Hall facility including utilities, janitorial, grounds maintenance and snow removal, and operating and maintenance supplies. The purpose behind making these transfers beginning in 2015 was to "create" this appropriation capacity within the General Fund. These amounts were transferred out to the General Fund in 2016 and 2017 in order to cover lease payments for the prior City Hall location in years in which the City had both a lease payment and a bond payment for the new City Hall building. Revenues Investment Interest Total revenues Expenditures Transfers out - #001 Transfers out - #312 Total expenditures Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 9,029 $ 14,049 $ 16,700 $ 17,000 $ 3,100 9,029 14,049 16,700 17,000 3,100 498,500 0 0 0 0 0 0 18,452 16,700 0 498,500 0 18,452 16,700 0 Revenues over (under) expenditures (489,471) 14,049 (1,752) 300 3,100 Beginning fund balance 1,333,159 843,688 857,737 855,985 856,285 Ending fund balance $ 843,688 $ 857,737 $ 855,985 $ 856,285 $ 859,385 98 Fund: 311 Pavement Preservation Fund Spokane Valley 2021 Budget This fund was created during the 2011 Budget development process for the purpose of setting money aside for yet to be determined street capital improvement projects. Since inception, the pavement preservation program has been funded through a series of transfers from other City funds as well as grant proceeds. Below is a table summarizing the funding sources for Fund #311, including actuals for 2011 through 2019 and budgeted amounts for 2020 and 2021: Fund 001 101 106 123 301/302 310 Street Civic Fac_ Civic Fac_ General Street O&M Wear Fee Replace_ REST 1&2 Capital Grants I I Total Actual 2011 584,681 0 0 0 0 500,000 0 1.084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2.090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 2018 962,700 67,342 1.000,000 0 1,370,658 0 1,422,404 4,823,104 2019 972,300 0 1,608,028 0 1,545,277 0 2,398,330 6,523,935 Budget 2020 982,023 0 1,513,532 0 1,545,277 0 10,588 4,051,420 2021 991,843 0 1,500,000 0 1,654,557 0 0 4,146,400 11,100,430 972,644 5,621,560 2,408,660 9,338,341 500,000 8,489,062 38,430,697 Beginning in 2013, the City committed to finance pavement preservation at a level equivalent to 6% of General Fund recurring expenditures, which has continued from that year through the 2021 budget development. Because this is a Capital Project Fund whose sole purpose is to provide for Pavement Preservation projects, any money not expended in a given year will remain in the fund and will be available for re -appropriation in subsequent years. The fund balance of Fund #123 was exhausted with the 2016 transfer of $559,808 as a consequence of following this funding strategy. In order to maintain the City's practice of setting aside funds for pavement preservation in an amount equivalent to 6% of General Fund recurring expenditures, the City began to rely more heavily on REET funds. We have determined that the 2021 funding level representing approximately 6% of General Fund recurring expenditures is $2,646,400 and that this level of funding is sustainable through 2025 assuming a General Fund contribution of $991,843 and a collective contribution of $1,654,557 from the REET 1 Capital Projects Fund #301 and the REET 2 Capital Projects Fund #302. The City will take advantage of grant programs directed at pavement preservation as they become available. Revenues Transfers in -#001 Transfers in -#101 Transfers in -#106 Transfers in -#301 Transfers in - #302 Investment Interest Grant Proceeds Intergovernmental Rev. - Model Irrigation Total revenues Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 953,200 $ 962,700 $ 972,300 $ 982,023 $ 991,843 67,342 67,342 0 0 0 0 1,000,000 1,608,028 1,513,532 1,500,000 660,479 685,329 734,300 772,639 827,278 660,479 685,329 734,300 772,638 827,279 20,535 54,724 49,593 0 0 89,209 1,422,404 2,398,330 10,588 0 0 0 1,267,575 0 0 2,451,244 4,877,828 7,764,426 4,051,420 4,146,400 Expenditures Pavement preservation 2,042,305 3,559,755 7,954,415 4,217,523 4,676,350 Pre -project GeoTech 0 43,261 22,125 50,000 50,000 Total expenditures 2,042,305 3,603,016 7,976,540 4,267,523 4,726,350 Revenues over (under) expenditures 408,939 1,274,812 (212,114) (216,103) (579,950) Beginning fund balance 2,953,564 3,362,503 4,637,315 4,425,201 4,209,098 Ending fund balance $ 3,362,503 $ 4,637,315 $ 4,425,201 $ 4,209,098 $ 3,629,148 99 Fund: 312 Capital Reserve Fund Spokane Valley 2021 Budget This fund was created in 2013 to be used to account for the accumulation of resources for yet to be determined capital projects. The initial source of funds was a 2013 General Fund transfer of $7,826,207 which was followed by additional transfers from the General Fund from 2014 through 2019 in the amount of $19,974,400. Projects approved by City Council from this fund include in part: • $1,713,284 for the City's share of the $15.5 million Sullivan Road West Bridge Replacement • $2,396,813 for construction of various sections of the Appleway Trail. • $5,143,844 for construction of a new City Hall building. • $1,800,000 to remove and reconstruct Euclid Ave. from Flora to Barker after County installation of sewer. • $1,421,321 towards a Barker Road / BNSF Grade Separation project. • $3,485,417 towards a Pines Road / BNSF Grade Separation project. • $3,034,400 towards Barker Road corridor improvements. • $2,935,600 for park land acquisitions. • $460,715 towards improvements at the Spokane County Library's proposed Balfour site. Commitments to future projects include: • $500,000 towards Sullivan Road / BNSF Interchange project. • $875,023 towards Balfour Park development. Future projects are yet to be determined. Revenues Transfers in - #001 Transfers in - #309 Transfers in -#310 Transfers in -#313 Investment Interest Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 3,003,929 $ 3,795,429 $ 7,109,300 $ 0 $ 0 0 0 0 200,000 0 0 0 18,452 0 0 0 405,056 88,590 16,700 0 52,170 126,565 225,907 100,000 100,000 Total revenues 3,056,099 4,327,050 7,442,249 316,700 100,000 Expenditures City Hall Sculpture Siting 41,376 5,383 0 0 0 Professional Services 0 31,659 0 0 0 Transfers out - #101 0 0 907,544 1,364,706 0 Transfers out - #303 - Sullivan Rd W Bridge 455,465 0 0 0 0 Transfers out - #303 - Euclid Ave - Flora to Barker 1,464,381 (547,287) 5,111 0 0 Transfers out - #303 - 8th & Carnahan Intersection 218,300 0 (155) 0 0 Transfers out - #303 - Barker Road Corridor 0 0 1,718,874 495,291 0 Transfers out - #303 - Garland Ave 0 0 203,814 1,286,436 0 Transfers out - #303 - Crosswalk lighting on India, 0 0 71,486 0 0 Transfers out - #309 - Appleway Trail -Pines-Evert 277,437 0 0 0 0 Transfers out - #309 - Appleway Trail -Corbin 0 289,661 0 0 0 Transfers out - #309 - Appleway Trail -Evergreen-: 0 0 262,599 48,523 0 Transfers out - #309 - Balfour Park frontage impror 0 0 0 59,850 565,150 Transfers out - #309 - Balfour Park frontage impror 0 0 0 11,000 0 Transfers out - #314 - Pines Grade Separation 482,216 0 0 67,500 64,192 Transfers out - #314- Barker Rd Overpass 0 0 0 0 411,582 Transfers out - #314 - Sullivan Rd Interchange 0 0 0 75,000 250,000 Precinct property acquisition 0 0 226,700 0 0 Park property acquisition 0 0 84,380 2,091,600 759,600 Total expenditures 2,939,175 (220,584) 3,480,353 5,499,906 2,050,524 Revenues over (under) expenditures Beginning fund balance Ending fund balance 116,924 4,547,634 3,961,896 (5,183,206) (1,950,524) 4,310,362 4,427,286 8,974,920 12,936,816 7,753,610 $ 4,427,286 $ 8,974,920 $12,936,816 $ 7,753,610 $ 5,803,086 100 Fund: 314 Railroad Grade Separation Projects Fund Spokane Valley 2021 Budget This fund was created to account for the design and construction costs of various railroad grade separation projects that are included in the Bridging the Valley concept. Due to the anticipated size, scope, and duration of these projects, managing them in a separate fund allows for the necessary monitoring without being obscured by the variety and quantity of the other projects in the Street Capital Projects Fund #303 as well as keeping these projects from skewing the average volume of activity in Fund #303. Revenues for this fund consist of grant proceeds and transfers in from other City funds, such as the General Fund #001, the REET 1 Capital Project Fund #301 and the Capital Reserve Fund #312. Expenditures in the years of 2020 and 2021 are related to design and right of way costs for the Pines Road Underpass project and the right of way and construction costs for the Barker Road Overpass project. Design work is also beginning for the Sullivan Road Interchange. Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget Revenues Grant Proceeds $ 87,611 $ 571,136 $ 1,447,398 $ 3,526,378 $ 11,508,819 Investment Interest 4,072 16,591 15,883 0 0 Transfers in-#001 1,200,000 0 0 0 0 Transfers in-#301 111,941 (8,147) 104,918 869,008 0 Transfers in-#302 0 0 0 0 1,127,387 Transfers in -#312 482,216 0 0 142,500 725,774 Total revenues 1,885,840 579,580 1,568,199 4,537,886 13,361,980 Expenditures Barker BNSF Grade Separation 3,893 562,988 1,552,316 3,405,977 9,396,870 Pines Rd Underpass 12,975 48,923 43,717 1,300,000 4,149,450 Sullivan Rd Interchange 0 0 0 75,000 250,000 Total expenditures 16,868 611,911 1,596,033 4,780,977 13,796,320 Revenues over (under) expenditures 1,068,804 (32,331) (27,834) (243,091) (434,340) Beginning fund balance 0 1,068,804 1,036,473 1,008,639 765,548 Ending fund balance $ 1,068,804 $ 1,036,473 $ 1,008,639 $ 765,548 $ 331,208 101 Fund: 402 Stormwater Management Fund Spokane Valley 2021 Budget The purpose of the Stormwater Management Fund is to account for the funds related to the cleaning, maintenance, and improvement of the City's storm drainage system. The revenue for this fund originates from a stormwater fee collected by Spokane County on behalf of the City. The annual fee is $21 for each single family unit, and for other property types a fee of $21 per each 3,160 square feet of parcel impervious surfacing is collected. Accomplishments for 2020 • Continued the work on the Glenrose and Central Basins Floodplain Delineation Project (FEMA Mapping). • Continue collaboration efforts with local, State, and Federal stormwater regulatory bodies. • Continue the inventory and mapping of all City stormwater facilities. • Continue on -going stormwater maintenance and repairs utilizing in-house and contracted services. • Coordinated and financed stormwater system improvements with capital projects developed by the City. • Continued stormwater management and NPDES coordination efforts with other Eastern Washington agencies. • Begin developing stormwater requirements to meet new National Pollution Discharge Elimination System (NPDES) Permit. Goals for 2021 • Continue the evaluation efforts for the Glenrose and Central Floodplain mapping for FEMA. • Work with other departments in developing a city-wide, comprehensive Asset Management Program, which will include stormwater facilities. • Continue collaboration efforts with local, State, and Federal stormwater regulatory bodies. • Continue the inventory and mapping of all City stormwater facilities. • Continue on -going stormwater maintenance and repairs utilizing in-house and contracted services. • Implement stormwater system improvements, integrating with other capital projects for efficiency. • Begin efforts in developing a Comprehensive Stormwater Management Plan for the City. Personnel - FTE Equivalents Engineer Engineering Technician I Engineering Technician 11 Stormwater Forman Assistant Engineer Maintenance/Construction Inspector Planning Grants Engineer Budget Summary 2017 Actual 1.0 0.0 1.0 0.0 1.0 1.15 0.25 4.40 2018 Actual 1.0 0.0 1.0 0.0 1.0 1.15 0.25 4.40 2019 Actual 1.0 0.0 1.0 0.0 0.5 1.15 0.25 3.90 2020 Budget 1.0 0.0 1.0 0.0 0.5 1.15 0.25 3.90 2021 Budget 1.0 0.5 1.0 0.9 0.0 0.25 0.25 3.90 Intems 2.0 3.0 2.0 2.0 2.0 (continued to next page) 102 Fund: 402 Stormwater Management Fund Spokane Valley 2021 Budget (continued from previous page) Budget Summary Recurring Activity 2017 Actual Revenues 2018 Actual 2019 Actual 2020 Budget 2021 Budget StormwaterManagementfees $ 1,895,033 $ 1,920,509 $ 1,936,362 $ 1,900,000 $ 1,900,000 Investment Interest 20,564 40,465 48,642 40,000 40,000 Miscellaneous & Grants Proceeds 25,000 0 58,746 0 0 1,940,597 1,960,974 2,043,750 1,940,000 1,940,000 Expenditures Wages, Payroll Taxes & Benefits 465,102 403,470 436,115 519,582 538,864 Supplies 11,064 12,418 16,956 14,750 14,750 Services & Charges 1,010,643 1,149,170 1,135,846 1,298,153 1,320,643 Intergovernmental Services 32,661 35,430 37,984 37,500 45,000 Transfers out - #001 13,400 13,400 0 0 0 Interfund vehicle lease - #501 0 0 0 14,000 6,750 1,532,870 Recurring revenues over (under) Recurring Expenditures 407,727 1,613,888 1,626,901 347,086 416,849 1,883,985 1,926,007 56,015 13,993 Nonrecurring Activity Revenues Grant Proceeds 338,384 128,695 106,000 59,828 100,000 FEMA Grant Proceeds - Windstorm 6,823 0 0 0 0 345,207 128,695 106,000 59,828 100,000 Expenditures Capital - Various Projects 528,433 354,085 423,585 500,000 500,000 Stormwater Comprehensive Plan 0 0 0 100,000 100,000 Watershed studies 0 64,541 48,576 80,000 100,000 528,433 418,626 472,161 680,000 700,000 Nonrecurring revenues over (under) Nonrecurring Expenditures (183,226) (289,931) (366,161) (620,172) (600,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 224,501 57,155 50,688 (564,157) (586,007) Beginning working capital 1,761,416 1,973,424 2,216,210 2,180,773 1,616,616 Ending working capital $ 1,985,917 $ 2,030,579 $ 2,266,898 $ 1,616,616 $ 1,030,609 103 Fund: 403 Aquifer Protection Area Fund Spokane Valley 2021 Budget In 1985 voters of Spokane County approved a ballot proposition to create the Spokane Aquifer Protection Area (APA) as well as corresponding aquifer protection area fees with both sunsetting December 31, 2005. Boundaries of the APA included portions of unincorporated areas (including what is now Spokane Valley) and the cities of Liberty Lake, Millwood and Spokane. In 2004 the City of Spokane Valley approved a resolution authorizing the inclusion of its municipal boundaries within the APA. The APA program was subsequently reauthorized through 2025 with voter approval. All fees are collected by Spokane County and include: • An annual fee of $15 per household for the withdrawal of water from properties within the APA. • An annual fee of $15 per household for on -site sewage disposal within the APA. • For commercial properties an annual fee ranging from $15 to $960 depending upon water meter size. In 2004 the City of Spokane Valley (City) entered into an interlocal agreement with Spokane County (County) that authorized the County to collect and retain APA fees through 2010 for a variety of projects including: • up to $100,000 annually through 2010 to the Spokane Regional Health District to provide for data base management related to monitoring of septic tanks and their potential impact on water quality in the Spokane Valley Rathdrum Prairie Aquifer. • a septic tank elimination program (STEP) designed to replace septic tanks with sanitary sewer systems. In the 2004 interlocal agreement the City and County also agreed that for the years 2011 through 2025 the APA fees remaining after the payment of reasonable administration and billing fees incurred by the County would be distributed annually between the County, City and City of Spokane on a proportional basis relative to the amount generated in unincorporated areas, the City and City of Spokane. The fees collected on the City's behalf by Spokane County are expended entirely on stormwater related projects that are designed to protect the aquifer. These fees plus grant monies received from a number of granting agencies finance a variety of capital projects. Revenues Spokane County Grant Proceeds Investment Interest Total Revenues Expenditures Capital - Various projects Total Expenditures Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 521,070 $ 462,981 $ 469,429 $ 460,000 $ 460,000 0 597,733 101,715 446,700 2,122,045 0 28,620 37,329 20,000 15,000 521,070 1,089,334 608,473 926,700 2,597,045 58,722 662,402 329,829 58,722 662,402 329,829 1,133,571 2,378,109 1,133,571 2,378,109 Revenues over (under) expenditures 462,348 426,932 278,644 (206,871) 218,936 Beginning working capital 950,725 1,413,073 1,840,005 2,118,299 1,911,428 Ending working capital $ 1,413,073 $ 1,840,005 $ 2,118,649 $ 1,911,428 $ 2,130,364 104 Fund: 501 Equipment Rental & Replacement Fund Spokane Valley 2021 Budget The Equipment Rental & Replacement Fund (ER&R) is an Internal Service Fund that is designed to provide the funds necessary to purchase new vehicles and equipment at predetermined life cycles. This fund operates by charging each City department a monthly rental rate for the vehicles they use. The fee is based upon the estimated useful life of the vehicle and its replacement cost. The theory behind this program is that it allows City departments to budget vehicle replacement costs as a reoccurring expense over an extended period of time rather than as an intermittent capital expense that may be difficult to afford in any single year. In the event a City department requires an additional vehicle that actually adds to the fleet rather than simply replaces an existing vehicle, then that department must budget for the initial purchase price and transfer the necessary funds to the ER&R Fund to make the acquisition. In subsequent years the department will then begin paying a replacement fee spread out over the estimated useful life of the new vehicle. Beginning in 2017 a CenterPlace Kitchen Reserve was established through a transfer in from the General Fund in the amount of $36,600 per year for 5 years to build a total reserve of $183,000, which is the estimated replacement cost of the significant kitchen appliances and equipment at CenterPlace. Snow Plow Replacement Program The snow plow fleet currently consists of nine plow trucks. Six of the trucks are equipped with sanders and three of the trucks are equipped with 1,000-gallon tanks for placement of liquid deicer. Over the past five years the City has continued to improve the snow removal operations and has updated the snow plan accordingly. These improvements in snow operations have dictated that operating nine plows is a very efficient way to remove snow from the arterial and hillside roadways. Operating nine plows allows the performance of a full city arterial and designated hillsides plow in approximately 12 hours. In the future new plows will be purchased to replace the aging fleet as noted below and older plows will serve as backups and eventually be retired from the fleet beginning in 2022. The recommended snow plow fleet consists of eleven plows with two serving as backup plows. The two backup plows ensure that arterial roadways and hillside priority roadways can be cleared of snow per the snow plan. Having backup plows provides the City with additional plows that can be deployed in case of a mechanical breakdown or an accident during a winter storm event. Snow Plow Fleet Truck # Model Year YRAcquired Age at Retirement Replacement Yr Notes 206 1996 2009 26 2022 207 1997 2009 28 2025 204 1995 2009 33 2028 203 1995 2009 36 2031 Existing Fleet 205 1996 2009 38 2034 (9) Snow Plows 208 1997 2009 40 2037 209 1998 2011 42 2040 211 2000 2012 43 2043 210 2010 2011 36 2046 212 2016 2016 33 2049 Truck 206 becomes a backup 213 2020 2020 32 2052 Truck 207 becomes a backup 214 2022 2022 33 2055 Truck 204 becomes a backup /206 is retired 215 2025 2025 33 2058 Truck203 becomes a backup/207 is retired 216 2028 2028 33 2061 Truck 205 becomes a backup /204 is retired 217 2031 2031 33 2064 Truck208 becomes a backup/203 is retired 218 2034 2034 33 2067 Truck209 becomes a backup/205 is retired 219 2037 2037 33 2070 Truck21111 becomes a backup/208 is retired 220 2040 2040 33 2073 Truck2110 becomes a backup/209 is retired 221 2043 2043 33 2076 Truck2112 becomes a backup /21111 is retired (continued to next page) 105 Fund: 501 Equipment Rental & Replacement Fund Spokane Valley 2021 Budget (continued from previous page) Revenues Vehicle rentals - #001 Vehicle rentals - #101 Vehicle rentals - #101 (plow replace.) Vehicle rentals - #402 Transfers in -#001 (CenterPlace kitchen reserve) Transfers in -#001 (Code Enforcement Vehicle) Investment Interest Total Revenues Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget 32,500 30,000 30,000 28,000 31,300 23,250 21,250 21,250 14,500 10,250 77,929 77,929 77,929 48,500 60,500 12,750 12,750 12,750 14,000 6,750 36,600 36,600 36,600 36,600 36,600 0 0 0 30,000 0 9,651 19,873 26,715 19,000 10,000 192,680 198,402 205,244 190,600 155,400 Expenditures Wages, Payroll Taxes & Benefits 0 3,714 0 0 0 Vehicle maintenance equipment 46,039 0 122 20,000 10,000 Snow plow purchase 110,309 0 0 235,000 0 Vehicle Purchase 0 0 0 30,000 130,000 Transfer out - #001 (networking equipment) 77,000 0 0 0 0 Total Expenditures 233,348 3,714 122 285,000 140,000 Revenues over (under) expenditures (40,668) 194,688 205,122 (94,400) 15,400 Beginning working capital 1,136,951 1,096,283 1,290,971 1,496,093 1,401,693 Ending working capital $ 1,096,283 $ 1,290,971 $ 1,496,093 $ 1,401,693 $ 1,417,093 Fund: 502 Risk Management Fund Spokane Valley 2021 Budget The City of Spokane Valley is exposed to risks of loss related to a number of sources including tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; natural disasters; and unemployment claims filed by former employees through the State of Washington. The Risk Management Fund was established to account for all such related revenues and expenses. Revenues for this fund are comprised almost entirely from an annual transfer of money from the General Fund and the single largest expense is typically the insurance premium the City pays to our insurance provider, the Washington Cities Insurance Authority (WCIA). Revenues Transfers in -#001 Investment Interest Total Revenues Expenditures Auto & Property insurance Unemployment Claims Total Expenditures Budget Summary 2017 Actual 2018 Actual 2019 Actual 2020 Budget 2021 Budget $ 350,000 $ 370,000 $ 390,000 $ 410,000 $ 425,000 1,107 2,135 2,124 0 0 351,107 372,135 392,124 410,000 425,000 311,467 345,769 348,794 410,000 425,000 29,066 6,849 31,104 0 0 340,533 352,618 379,898 410,000 425,000 Revenues over (under) expenditures 10,574 19,517 12,226 0 0 Beginning working capital 233,687 244,261 263,778 276,004 276,004 Ending working capital $ 244,261 $ 263,778 $ 276,004 $ 276,004 $ 276,004 106 CITY OF SPOKANE VALLEY, WA Capital Expenditures for 2021 SOURCE OF FUNDS #001 #106 #107 #301 #302 #311 #312 #314 #402 #403 #501 2021 REET 1 REET 2 Aquifer Equipment Expenditure Solid Capital Capital Pavement Capital Grade Stormwater Protection Rental & Developer Capital Outlay Description Budget General Waste PEG Projects Projects Preservation Reserve Separation Managemen Area Replacemen Grants Contributions #001 General Fund - IT capital replacements 242,800 242,800 - Public Safety replacements 41,400 41,400 Subtotal 284,200 284,200 I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0 #107 PEG Fund 33,500 33,500 - PEG Capital outlay Subtotal 33,500 0I 0I 33,500 I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0 #303 Street Capital Projects Fund 205 Sprague/Barker Intersection Improvements 329,453 305,750 23,703 249 Sullivan/Wellesley Intersection 1,020,522 133,720 856,802 30,000 267 Mission Ave Sidewalk 11,310 8,460 2,850 275 Barker Rd Widening - River to Euclid 1,132,320 1,132,320 285 Indiana Ave Pres - Evergreen to Sullivan 7,210 7,210 293 2018 CSS Citywide Reflective Signal BP 74,250 74,250 294 Citywide Reflective Sign& Post Panels 17,875 17,875 299 Argonne Rd Concrete Pvmt Indiana to Mont 2,392,450 500,326 1,892,124 300 Pines & Mission Intersection Improvement 498,000 67,230 430,770 301 Park and Mission Intersection Improvements 693,000 277,200 415,800 310 Sullivan Rd Overcrossing UP RR Deck Rep 317,625 317,625 313 Barker Road/Union Pacific Crossing 1,312,500 758,608 553,892 318 Wilbur Sidewalk: Boone to Mission 50,000 6,750 43,250 320 Sullivan Preservation: Sprague-8th 19,800 19,800 Contingency 1 1,000,000 100,000 100,000 800,000 Subtotal 8,876,315 0 I 0 I 0 I 316,620 I 1,662,684 I 0 I 0 I 0 I 0 I 0 I 0 I 6,843,308 I 53,703 #309 Parks Capital Projects Fund 314 Balfour Park Frontage Improvements 565,150 565,150 315 Browns Park Improvements 2020 499,805 19,275 480,530 Install stage fill speakers Great Room 6,346 6,346 Repair failed pixels Great Room 6,505 6,505 Reprogram Great Room A/V System 12,499 12,499 Repair/replace siding at Mirabeau restroom 30,000 30,000 Subtotal 1,120,305 74,625 I 0 I 0 I 0 I 0 I 0 I 565,150 I 0 I 0 I 0 I 0 I 480,530 I 0 #311 Pavement Preservation Fund 4,676,350 991,843 1,500,000 827,278 827,279 529,950 - Pavement preservation Subtotal 4,676,350 991,843 I 1,500,000 I 0 I 827,278 I 827,279 I 529,950 I 0 I 0 I 0 I 0 I 0 I 0 I 0 #312 Capital Reserve Fund 759,600 759,600 - Park land acquisition Subtotal 759,600 0 I 0 I 0 I 0 I 0 I 0 I 759,600 I 0 I 0 I 0 I 0 I 0 I 0 #314 Grade Separation Fund 143 Barker BNSF Grade Separation 9,396,870 1,127,387 411,582 7,857,901 223 Pines Rd Underpass @ BNSF & Trent' 4,149,450 64,192 434,340 3,650,918 311 Sullivan Rd Interchange @ Trent 250,000 250,000 13,796,320 0 I 0 I 0 I 0 I 1,127,387 I 0 I 725,774 I 434,340 I 0 I 0 I 0 I 11,508,819 I 0 #402 Stormwater Management Fund 500,000 500,000 - Capital - various projects Subtotal 500,000 0I 0I 0I 0I 0I 0I 0I 0I 500,000 I 0I 0I 0I 0 #403 Aquifer Protection Area Fund 2,378,109 256,064 2,122,045 -Capital- various projects Subtotal 2,378,109 0I 0I 0I 0I 0I 0I 0I 0I 0I 256,064 I 0 I 2,122,045 I 0 #501 Equipment Rental and Replacement Fund 130,000 0 130,000 - Vehicle purchase Subtotal 130,000 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 130,000 I 0I 0 Total Capital Expenditures and Related Financing 32,554,699 1,350,668 1,500,000 33,500 1,143,898 3,617,350 529,950 1,290,924 434,340 1 Contingency amount is to cover unforseen overruns, costs related to projects that were expected to complete in 2016 and the costs of projects that have not yet had funding sources identified. 2 Use of Fund Balance for CIP 0223-Pines Rd Underpass @ BNSF & Trent is a portion of the $1,200,000 transferred from the General Fund in 2017. - Dollar figures in Italicized Bold font are paid from a combination of existing fund balance and fund revenue that is not attributable to a single project. 500,000 256,064 130,000 20,954,702 53,703 107 #001 - General Fund City Manager / City Clerk City Attorney Public Safety Deputy City Manager Finance Human Resources Public Works City Hall Operations & Maintenance CPW - Engineering CPW - Economic Development CPW - Building and Planning CED - Administration CED - Economic Development CED - Development Services CED - Engineering CED - Planning CED - Building Parks & Rec - Admin Parks & Rec - Recreation Parks & Rec - Senior Center Parks & Rec - CenterPlace CITY OF SPOKANE VALLEY, WA Full Time Equivalent Employees Adopted 2011 I 2012 I 2013 I 2014 I 2015 I 2016 I 2017 I 2018 I 2019 I 2020 Amended 2020 Proposed 2021 (1) 5 5 5 5 5 5 5 3 3 3 3 3 3 3 0 0 0 0 0 0 0 7 7 6 6 6 6 6 11 11 10.75 11.75 11.75 11.75 11.75 2 2 2 2 2 2 2 7.5 7.5 7 7.375 7.375 7.375 6.375 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 3 2 2 2 2 1 0 0 0 0 2.5 2.65 4 0 0 0 0 11 11 10 6 6 8 7 0 0 0 8.5 8.5 8 8 0 0 0 12.75 12.75 11.5 12.5 14 14 15 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 Difference from 2020 to 2021 + (-) (2) 7 6.5 6.5 7.5 7.5 1.000 (4) 3.5 3.5 4 4 4 0.000 0 0.12 0.12 0.12 0.12 0.000 3 1 1 1 1 0.000 11.75 11.75 11.75 11.75 11.75 0.000 2 2 2 2 2 0.000 0 0 0 0 0 0.000 1 0.88 0.88 0.88 0.88 0.000 12.5 13.275 13.525 13.025 14.025 0.500 (3)(4) 6.375 6 6 6 5 (1.000) (3) 18 20 21 21 21 0.000 0 0 0 0 0 0.000 0 0 0 0 0 0.000 0 0 0 0 0 0.000 0 0 0 0 0 0.000 0 0 0 0 0 0.000 0 0 0 0 0 0.000 2 2 2 2 2 0.000 1 1 1.6 1.6 1.6 0.000 1 1 0.4 0.4 0.4 0.000 5 5 5 5 5 0.000 Total General Fund 74.75 74.75 72.25 73.625 73.625 73.775 74.125 74.125 74.025 75.775 76.275 76.275 0.500 #101 - Street Fund 5 4.5 5 5.375 5.725 5.725 5.725 5.725 7.725 7.475 7.475 7.475 0.000 #303 - Street Capital Project Fund 3.5 3.5 3.5 3.5 3.5 3.5 3.5 5 8.1 8.1 7.6 7.6 (0.500) (4) #402 - Stormwater Fund 4 4.5 4.5 4.75 4.4 4.4 4.4 4.4 3.9 3.9 3.9 3.9 0.000 Total FTEs 87.25 87.25 85.25 87.25 87.25 87.4 87.75 89.25 93.75 95.25 95.25 95.25 0.000 (1) FTEs for 2017 reflect the reorganization that was effective in April 2017. The original 2017 Budget had FTEs of 88.4. (2) FTEs for 2018 reflect the budget amendment approved on May 29, 2018. (3) One vacant position in Economic Development was repurposed to Engineering due to workload. (4) Vacant Engineering position that was split 50/50 between the General Fund and Street Capital Projects Fund was repurposed to a Housing & Homeless Services Coordinator in the City Manager department. 108 2019 Work Force Comparison The 30 Washington Communities with a Population of 30,000 to 100,000 City Population Full-time Part-time Auburn 80,615 445 1 Bellingham 88,500 885 16 Bothell 45,260 336 12 Bremerton 41,500 345 19 Burien 51,850 75 6 Des Moines 31,140 147 3 Edmonds 41,820 228 7 Federal Way 97,440 324 7 Issaquah 37,110 250 10 Kennewick 81,850 397 7 Kirkland 87,240 627 12 Lacey 50,170 267 3 Lake Stevens 32,570 86 4 Lakewood 59,350 205 4 Longview 37,710 303 7 Lynnwood 38,260 290 6 Marysville 67,040 275 5 Mount Vernon* 35,180 210 50 Olympia 52,490 600 25 Pasco 73,590 370 0 Pullman 33,730 215 31 Puyallup 41,100 281 8 Redmond 64,050 623 10 Richland* 55,320 475 23 Sammamish** 63,470 106 7 Shoreline 55,730 172 14 Spokane Valley 95,810 90 2 University Place 32,820 44 9 Walla Walla 34,000 276 14 Wenatchee 34,530 172 4 Yakima 94,190 684 27 Source: AWC's 2019 Salary and Benefits Survey, participants data for cities and towns * 2019 data not reported. Numbers from 2018 ** Neither 2019 nor 2018 data reported. Numbers from 2017. 109 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Effective January 1, 2021 Position Title Grade 2021 Range City Manager Unclassified Deputy City Manager 22 10,063.44 - 16,365.38 City Attorney 21 9,066.16 - 14,369.72 Finance Director 21 9,066.16 - 14,369.72 Parks and Recreation Director 20 8,159.44 - 12,933.70 City Engineer 19 7,343.36 - 11,640.45 Deputy City Attorney 19 7,343.36 - 11,640.45 Human Resources Manager 19 7,343.36 - 11,640.45 Planning Manager 18 6,609.87 - 10,475.89 Building Official 18 6,609.87 - 10,475.89 Engineering Manager 18 6,609.87 - 10,475.89 Economic Development Manager 18 6,609.87 - 10,475.89 Senior Engineer 17 5,948.55 - 9,427.91 Accounting Manager 17 5,948.55 - 9,427.91 Assistant Building Official 17 5,948.55 - 9,427.91 Public Works Superintendent 17 5,948.55 - 9,427.91 Senior Administrative Analyst 17 5,948.55 - 9,427.91 IT Manager 17 5,948.55 - 9,427.91 Attorney 16 5,353.16 - 8,484.58 City Clerk 16 5,353.16 - 8,484.58 Engineer 16 5,353.16 - 8,484.58 Senior Planner 16 5,353.16 - 8,484.58 Development Services Coordinator 16 5,353.16 - 8,484.58 GIS/Database Administrator 16 5,353.16 - 8,484.58 Accountant/Budget Analyst 16 5,353.16 - 8,484.58 Associate Planner 15 4,818.50 - 7,636.64 Assistant Engineer 15 4,818.50 - 7,636.64 IT Specialist 15 4,818.50 - 7,636.64 Engineering Technician II 15 4,818.50 - 7,636.64 Economic Development Project Specialist 15 4,818.50 - 7,636.64 Senior Plans Examiner 15 4,818.50 - 7,636.64 Public Information Officer 15 4,818.50 - 7,636.64 Administrative Analyst 15 4,818.50 - 7,636.64 Maintenance/Construction Foreman 15 4,818.50 - 7,636.64 Mechanic 14 4,336.92 - 6,873.51 Human Resource Analyst 14 4,336.92 - 6,873.51 CenterPlace Coordinator 14 4,336.92 - 6,873.51 Planner 14 4,336.92 - 6,873.51 Building Inspector II 14 4,336.92 - 6,873.51 Plans Examiner 14 4,336.92 - 6,873.51 Engineering Technician I 14 4,336.92 - 6,873.51 Senior Permit Specialist 14 4,336.92 - 6,873.51 Code Enforcement Officer 14 4,336.92 - 6,873.51 Maintenance/Construction Inspector 14 4,336.92 - 6,873.51 Recreation Coordinator 13 3,902.91 - 6,185.92 Deputy City Clerk 13 3,902.91 - 6,185.92 Customer Relations/Facilities Coordinator 13 3,902.91 - 6,185.92 Building Inspector I 13 3,902.91 - 6,185.92 Executive Assistant 13 3,902.91 - 6,185.92 Planning Technician 13 3,902.91 - 6,185.92 Human Resources Technician 13 3,902.91 - 6,185.92 Senior Center Specialist 12 3,513.90 - 5,567.19 Permit Facilitator 12 3,513.90 - 5,567.19 Help Desk Technician 12 3,513.90 - 5,567.19 Accounting Technician 12 3,513.90 - 5,567.19 Administrative Assistant 12 3,513.90 - 5,567.19 Recreation Specialist 12 3,513.90 - 5,567.19 Maintenance Worker 11-12 3,161.54 - 5,567.19 Permit Specialist 11 3,161.54 - 5,010.71 Office Assistant II 10-11 2,845.20 - 5,010.71 Custodian 10 2,845.20 - 4,508.59 Office Assistant I 9-10 2,561.00 - 4,508.59 Note : Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 110 To: From: Re: DRAFT ADVANCE AGENDA as of October 8, 2020; 9:30 a.m. Please note this is a work in progress; items are tentative Council & Staff City Clerk, by direction of City Manager Draft Schedule for Upcoming Council Meetings Oct 20, 2020, Study Session, 6:00 p.m. ACTION ITEMS: 1. Second reading Ordinance 20-015 TDS Cable Franchise — Cary Driskell 2. Mayoral Appointment- Planning Commissioner — Mayor Wick 3. Motion Consideration: Awards to Outside Agencies — Chelsie Taylor NON -ACTION ITEMS: 4. CTA 2019-0005 Title 20 Subdivision Regulations — Connor Lange 5. 2021 State Legislative Agenda — Cary Driskell, John Hohman, Mark Calhoun 6. Donation Recognition & Facility Naming Protocol — Cary Driskell, Mike Stone 7. Parliamentary Processes — Chris Bainbridge 8. 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 — Jenny Nickerson 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. First Reading Ordinance 20-017 Declaring Substantial Need — Chelsie Taylor 7. Admin Report: 2020 Budget Amendment — Chelsie Taylor 8. Admin Report: Advance Agenda — Mayor Wick 9. Info Only: Department Monthly Reports Nov 3, 2020, Study Session, 6:00 p.m. 1. Western Dance Hall Amended Agreement — Mike Stone 2. Advance Agenda — Mayor Wick [due Tue Oct 131 (10 minutes) (5 minutes) (20 minutes) (20 minutes) (15 minutes) (15 minutes) (15 minutes) (5 minutes) [*estimated meeting: 105 mins] [due Tue Oct 201 (15 minutes) (5 minutes) (15 mins) (10 minutes) (10 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting: 80 mins] 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. Second Reading Ordinance 20-017 Declaring Substantial Need — Chelsie Taylor 5. First Reading Ordinance 2020 Budget Amendment — Chelsie Taylor 6. First Reading Ordinance Adopting 2021 Budget — Chelsie Taylor 7. Admin Report: Advance Agenda — Mayor Wick [due Tue Oct 271 (10 minutes) (5 minutes) [due Tue Nov 31 (10 minutes) (5 minutes) (10 minutes) (10 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting: 60 mins] 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) NON -ACTION ITEMS: 2. Advance Agenda — Mayor Wick (5 minutes) Draft Advance Agenda 10/8/2020 2:08:05 PM Page 1 of 2 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: Code Text Amendment: Traffic Impact Fees — Adam Jackson 6. Admin Report: LTAC Recommendations to Council — Chelsie Taylor 7. Admin Report: 2021 Fee Resolution — Chelsie Taylor 8. Admin Report: Advance Agenda — Mayor Wick 9. Info Only: Department Monthly Reports [*estimated 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. First Reading Ordinance Impact Fees — Adam Jackson 3. Resolution for 2021 Fees (if changes are needed) — Chelsie Taylor 4. Motion Consideration: Award Lodging Tax for 2021 — Chelsie Taylor 5. Admin Report: Tourism Venues — John Hohman 6. Admin Report: Advance Agenda — Mayor Wick Dec 15, 2020, Study Session, 6:00 p.m. ACTION ITEMS: 1. Second Reading Ordinance Impact Fees — Adam Jackson NON -ACTION ITEMS: 2. 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 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: 4. Advance Agenda — Mayor Wick *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 [due Tue Nov 101 (10 minutes) (5 minutes) (10 minutes) (10 minutes) (15 minutes) (15 minutes) (15 minutes) (5 minutes) meeting: 85 mins] [due Tue Dec 1] (5 minutes) (15 minutes) (10 minutes) (15 minutes) (15 minutes) (5 minutes) 1due Tue Dec 81 (10 minutes) (5 minutes) [due Tue Dec 15] (5 minutes) (5 minutes) 1due Tue Dec 221 (5 minutes) [due Tue Dec 291 (15 minutes) (10 minutes) (10 minutes) (5 minutes) 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 Draft Advance Agenda 10/8/2020 2:08:05 PM Page 2 of 2