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2021, 11-16 study session AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING STUDY SESSION Tuesday,November 16,2021 6:00 p.m. Held Remotely via ZOOM Meeting and in person at 10210 E Sprague Avenue Council Requests Please Silence Your Cell Phones During Council Meeting NOTE: In response to Governor Inslee's announcement reopening Washington under the "Washington Ready" plan, members of the public may attend Spokane Valley Council meetings in-person at City Hall at the address provided above, or via Zoom at the link below. Members of the public will be allowed to comment in-person or via Zoom as described below. Public comments will only be accepted for those items noted on the agenda as"public comment opportunity." If wishing to make a comment via Zoom, comments must be received by 4:00 pm the day of the meeting. Otherwise, comments will be taken in- person at the meeting in Council Chambers,as noted on the agenda below.Per Governor Inslee's expanded emergency order Proclamation 20-25 reinstituting a statewide mask mandate regardless of vaccination status, all those entering or remaining in City Hall must wear a mask or face covering. Masks are available for the public at City Hall. • Sign up to Provide Oral Public Comment at the Meeting via Calling-In • Submit Written Public Comment Prior to the Meeting • Join the Zoom WEB Meeting CALL TO ORDER ROLL CALL APPROVAL OF AGENDA PROCLAMATIONS: Honoring Recipient of Girl Scout Gold Award;National Apprenticeship Week ACTION ITEMS: 1.First Reading Ordinance 21-021 Amending SVMC 2.40.010 Oath of Office—Chris Bainbridge [public comment opportunity] 2.Motion Consideration: Adopting 2022 State Legislative Agenda—Cary Driskell,John Hohman [public comment opportunity] NON-ACTION ITEMS: DISCUSSION LEADER SUBJECT/ACTIVITY GOAL 3. Chelsie Taylor Lodging Tax Advisory Committee Discussion/Information (LTAC)Recommendations to Council 4. Chaz Bates 2022 Comp Plan Docket Discussion/Information 5. Cary Driskell Yellowstone Pipe Line Franchise Discussion/Information Update 6. Cary Driskell Salary Commission Discussion/Information 7.Mayor Wick Advance Agenda Discussion/Information 8.Mayor Wick Council Comments Discussion/Information 9.Mark Calhoun City Manager Comments Discussion/Information 10. EXECUTIVE SESSION: Litigation [RCW 42.30.110(1)(i)]; and Evaluate the Qualifications of an Applicant for Public Employment [RCW 42.30.110(1)(g)] ADJOURN Council Agenda November 16,2021 Page 1 of 1 o,\., S1ô1 " �a11e eltValley OCLANATIO7T honoring 70(1ELA %' 7cIEBE voONEA A g DIE gI G SCOv2'GOLD AWARD WHEREAS, in 1912 in the midst of the Progressive Era and at a time when women in the United States couldn't vote, Juliette Gordon Low started the Girl Scout Movement, where they blazed trails and redefined what was possible for themselves and for girls everywhere; and WHEREAS, for over 100 years the Girl Scout program has delivered quality experiences for girls around the globe as it helps today's girls become tomorrow's leaders; and WHEREAS, girls work hard to earn their badges which symbolize their dedication to make the world, a better place;which badges include the areas of artist,athlete,citizen, cook, first-aid, Girl Scout Way, and naturalist; and WHEREAS, earning the Girl Scout Gold Award is a mighty achievement and is the highest and most prestigious award a girl can earn in Girl Scouts, and Kayla Priebe has met and/or exceeded the requirements for this award; and WHEREAS, Kayla's Gold Award project is truly inspiring; she worked to educate herself and others to help better understand the issue of homelessness; she partnered with many organizations including Blessings Under the bridge to support their efforts to feed the homeless; she interviewed current homeless people who shared their stores; and then Kayla put those interviews, as well as additional resources into her book. NOW, THEREFORE, I, Ben Wick, Mayor of the City of Spokane Valley, on behalf of Spokane Valley Councilmembers and community, do hereby extend commendations of the highest order to Kayla Priebe for her outstanding achievements, and we give Kayla our sincere best wishes for success in all her future endeavors. PROCLAIMED this 16th day of November, 2021. Ben Wick,Mayor Spokane 41 Valley® PROCLAMATION City of Spokane Valley, Washington National Apprenticeship Week WHEREAS, National Apprenticeship Week is celebrating its 7th anniversary of raising awareness of the vital role Registered Apprenticeships provide in creating opportunities by allowing apprentices to earn while they learn and preparing a pathway to well-paying careers in Spokane Valley and across the nation; and WHEREAS, Registered Apprenticeship programs enable employers to develop and train their future workforce while offering career seekers affordable paths to secure high- paying jobs, and WHEREAS, Spokane Valley recognizes the role of Registered Apprenticeship in expanding opportunities in our workforce that are inclusive of individuals who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality,thus providing a path for all qualified individuals, including women, youth, people of color, rural communities, justice-involved individuals and individuals with disabilities, to become apprentices and contribute to America's industries; and WHEREAS, Spokane Valley recognizes that Registered Apprenticeship, a proven and industry- driven training model, provides a critical talent pipeline that can train and build up our workforce to address our nation's pressing issues such as responding to climate change, modernizing our cybersecurity response, addressing public health issues, and rebuilding our country's infrastructure. NOW, THEREFORE, BE IT RESOLVED that I, Ben Wick, Mayor of the City of Spokane Valley, Washington, on behalf of the Spokane Valley City Councilmembers, do hereby declare November 15, 2021, through November 21, 2021, as NATIONAL APPRENTICESHIP WEEK Dated this 16th day of November 2021. Ben Wick, Mayor CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16, 2021 Department Director Approval: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Proposed Ordinance 21-021 amending SVMC 2.40.010, Oath of Office. GOVERNING LEGISLATION: Chapter 2.40 SVMC. PREVIOUS COUNCIL ACTION TAKEN: Adoption prior to incorporation on December 10, 2002 (with an effective date of March 31, 2003), amended October 11, 2011 relating to the title of the City Clerk and the Finance Director; administrative report January 17, 2017; first ordinance reading January 24, 2017; second reading and adoption February 7, 2017. BACKGROUND: SVMC 2.40.010 requires that four staff members take an oath of office as a prerequisite of assuming their duties for the City. Those positions are City Manager, City Clerk, Finance Director, and Chief of Police. Washington state law also requires incoming Councilmembers to take an oath or affirmation prior to undertaking their elective duties, but there is no statutory requirement that such oath be given before the mayor. Every two years following a City Council election, at the point Councilmembers are sworn in, the City is without a Mayor until following the swearing in when Council selects the Mayor and Deputy Mayor. Consequently, the existing language in SVMC 2.40.010 needs to be modified to remove the language "given before the Mayor." The following change to our code is therefore recommended: 2.40.010 Oath required. Each City Councilmember, the City Manager, City Clerk, City Treasurer/Finance Director and the City Chief of Police shall, before entering upon the performance of their duties, take an oath or affirmation for the faithful performance of their duties in the following form: OATH OF OFFICE I do solemnly swear(or affirm) that I will faithfully and impartially to the best of my ability perform the duties of the office of , and that I will support and defend the Constitutions of the United States and of the state of Washington, the applicable laws of the United States and of the state of Washington, and all other duly enacted laws,rules, and policies of the City of Spokane Valley, Spokane County, Washington. By: [Attestation] The oath or affirmation shall be given before the Mayor and filed with the Spokane County Auditor. OPTIONS: Suspend the rules and approve Ordinance 21-021 as stated or amended; or move to advance the ordinance to a second reading. RECOMMENDED ACTION OR MOTION: Move to suspend the rules and approve Ordinance 21- 021 as stated. BUDGET/FINANCIAL IMPACTS: NA. STAFF CONTACT: Chris Bainbridge, City Clerk ATTACHMENTS: Draft Ordinance 21-021 amending SVMC 2.40.010. Draft CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.21-021 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING SECTION 2.40.010 OF THE SPOKANE VALLEY MUNICIPAL CODE RELATING TO OATH OF OFFICE FOR INCOMING COUNCILMEMBERS AND SPECIFIC STAFF MEMBERS,AND OTHER MATTERS RELATING THERETO. WHEREAS, the City of Spokane Valley previously adopted chapter 2.40.010 Spokane Valley Municipal Code (SVMC) before formal incorporation of the City on December 10, 2002, which became effective upon incorporation March 31,2003; and WHEREAS, SVMC 2.40.010 requires that specified staff members take an oath of office or affirmation prior to undertaking their appointed duties; and WHEREAS, Washington state law requires incoming Councilmembers to provide an oath or affirmation prior to undertaking their elective duties,but there is no statutory requirement that such oath be given before the mayor. NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington ordains as follows: Section 1. Amendment. Spokane Valley Municipal Code 2.40.010 is hereby amended as follows: 2.40.010 Oath required. Each City Councilmember,the City Manager,City Clerk, City Treasurer/Finance Director and the City Chief of Police shall, before entering upon the performance of their duties, take an oath or affirmation for the faithful performance of their duties in the following form: OATH OF OFFICE I, do solemnly swear(or affirm)that I will faithfully and impartially to the best of my ability perform the duties of the office of , and that I will support and defend the Constitutions of the United States and of the state of Washington,the applicable laws of the United States and of the state of Washington,and all other duly enacted laws,rules,and policies of the City of Spokane Valley, Spokane County, Washington. By: [Atte station] The oath or affirmation shall be given before the Mayor and filed with the Spokane County Auditor. Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance is 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. Ordinance 21-021 Amending SVMC 2.40.010 Page 1 of 2 Draft Section 3. Effective Date. This Ordinance shall be in full force and effect five days after date of publication of this Ordinance or a summary thereof in the official newspaper of the City. PASSED by the City Council of the City of Spokane Valley this day of November,2021. Ben Wick,Mayor ATTEST: Christine Bainbridge,City Clerk Approved as to Form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 21-021 Amending SVMC 2.40.010 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16,2021 Department Director Approval: Check all that apply: ❑consent ❑old business ®new business ❑public hearing ❑information ❑admin.report ❑pending legislation ❑executive session AGENDA ITEM TITLE: Motion Consideration—Adoption of 2022 State Legislative Agenda. GOVERNING LEGISLATION: Not applicable. PREVIOUS COUNCIL ACTION TAKEN: This is the third of three planned discussions with Council for adoption of the 2022 State Legislative Agenda. BACKGROUND: This is an opportunity for Council to discuss potential items for the 2022 State Legislative Agenda(Agenda). Our anticipated development calendar is as follows: - September 28,2021 -Administrative report and Council discussion(first touch COMPLETED); -October 12,2021 -Administrative report and Council discussion(second touch COMPLETED); -November 16,2021 - Council motion to formally approve the 2022 Agenda; -December 2021 -Council meets with 4th District Legislative delegation to discuss 2022 Agenda; and -January 2022—Legislative session begins. Last year, Council shortened the 2021 Agenda from prior years by removing several items, resulting in a more focused agenda. This year's draft follows that same approach, but picks up several new items of particular importance to the City. The highlights of the draft 2022 Agenda include: - a renewed request for state funding for the Pines Grade Separation Project; -requesting changes to the state procurement laws/processes; - a continued commitment to defending local control; - a continued request to protect and restore local state-shared revenues; -requesting a change to municipal utility tax authority; -requesting that law enforcement-related issues be addressed;and -requesting changes to the Growth Management Act relating to local flexibility. OPTIONS: Approve the proposed 2022 State Legislative Agenda as drafted or take other action as appropriate. RECOMMENDED ACTION OR MOTION: I move Council approve the 2022 State Legislative Agenda as presented. BUDGET/FINANCIAL IMPACTS:Not applicable. STAFF CONTACT: John Hohman, Deputy City Manager; Cary Driskell, City Attorney;Mark Calhoun, City Manager;and Briahna Murray,Gordon Thomas Honeywell. ATTACHMENTS: Proposed 2022 State Legislative Agenda. Spokane Valley 10210 E Sprague Avenue • Spokane Valley WA 99206 Phone: (509)720-5000 •Fax:(509)720-5075 •www.spokanevalley.org 2022 Legislative Agenda -Final draft FUNDING REQUEST Pines Road Grade Separation Project The City requests$19.3 million to construct the Pines Road Grade Separation project. Pines Road is one of the region's key transportation corridors,carrying residential,commercial,and industrial traffic from Trent Avenue(SR 290)across the Spokane River to I-90. This project will provide grade separation at a crossing that 60 trains travel through each day, blocking traffic movements for nearly four hours. The project also improves the intersection of two state highways, Pines Road (SR 27) and Trent Avenue (SR 290). Pines Road is the primary access to almost 230 acres of undeveloped mixed-use,commercial and industrial land. Total project cost is estimated at$29 million.Thus far,the City has secured$9.7 million and project design and right-of-way acquisition are underway. The project will be shovel ready this year. The City requests $19.3 million to construct this ready-to-go project. Procurement Guidance and Assistance The City requests that the state provide greater assistance and guidance to public agencies when bidding large projects and selecting contractors to ensure that contractors have adequate experience to successfully complete the project. Specifically, the City asks that the Legislature direct an update to guidelines provided to local agencies on supplemental bidding criteria,provide technical assistance to local jurisdictions,and examine other changes to state bidding laws so that public agencies can meet the twin goals of a quality project and low price. Defend Local Control A foundational belief for the Spokane Valley City Council and the citizens they represent is that the most effective level of government is the one closest to the people. As such, the Council urges the Legislature to respect local decision-making. Examples include providing local jurisdictions with control over land use issues relating to density and intensity of use in urban and suburban areas. Protect and Restore Local State-Shared Revenues The City requests that the Legislature protect and restore local state-shared revenues to allow the City to deliver vital services to its residents. These funds include the Liquor Excise Tax Account, Liquor Board Profits, Municipal Criminal Justice Assistance Account, City-County Assistance Account,and Marijuana Revenues. Amend State Law Regarding Municipal Utility Taxing Authority The City requests that the Legislature clarify the conditions under which it is legal for a municipality to impose utility taxes on revenues from a county wastewater treatment system. Support Clarifying Legislation to Maintain Public Safety The City requests that the Legislature consider amendments or clarifications to several law enforcement related bills enacted during the 2021 legislative session to ensure there aren't unintended consequences negatively impacting the delivery of law enforcement services, including the critical community caretaking function law enforcement performs to maintain public safety. Amend Growth Management Act relating to addressing significant population fluctuations The City of Spokane Valley will monitor proposals making changes to the Growth Management Act and supports proposals that honor local democracy and enhance the City's role in the planning process. The City encourages the state to allocate adequate funding to cities to effectively implement planning directives from the state. The City supports AWC legislative agenda items that serve the best interests of Spokane Valley. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16, 2021 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Lodging Tax Advisory Committee - 2022 Recommended Grant Allocations for Tourism Promotion GOVERNING LEGISLATION: State Law RCW 82.08 and 67.28; Spokane Valley Municipal Code 3.20 PREVIOUS COUNCIL ACTION TAKEN: Thus far in 2021 for the 2022 awards, the Council has had discussions pertaining to lodging tax on two previous occasions: • July 20, 2021 where we discussed: o Lodging tax in general —what it is and how it may be expended. o The LTAC —what it is and its role in the process. o The Council's role in the process. o Council goals and priorities for the LTAC. • August 10, 2021 where Council discussed and reached consensus on the goals and priorities that should be included in the lodging tax grant application and also communicated to the LTAC. Council also unanimously approved a motion to authorize staff to submit an application to the LTAC for a new building at the Spokane Fair & Expo Center using amounts in the Hotel/Motel Tax-Tourism Facilities Fund 104. BACKGROUND: In 2003 the City implemented a 2% hotel/motel tax, the proceeds of which are used to promote conventions and tourist travel to our City. The organizations to which the tax proceeds are distributed are ultimately determined by the City Council which receives a recommendation from the Lodging Tax Advisory Committee (LTAC). The LTAC is comprised of five members who are appointed by the City Council. The LTAC membership must include: • At least two representatives of businesses that are required to collect the tax, • At least two people who are involved in activities that are authorized to be funded by the tax, and • One elected city official who serves as chairperson of the LTAC. The LTAC makes its recommendations based upon a combination of written application materials and a presentation that is made to them by each applicant. On October 13, 2021, the LTAC met to consider application materials and presentations from applicants seeking a portion of the $571,000 appropriated in the City's 2022 Budget for the 2% portion of lodging taxes in Fund #105, and for amounts from the 1.3% portion of taxes in Fund #104. This is the first year that the City has received applications for both the 2% and 1.3% lodging taxes. The total of all requests in the applications received for 2022 awards from the 2% tax totaled $775,000. Presentations for these funds were made by the HUB Sports Center, JAKT for Brews, Beats& Eats, JAKT for a new Craft Beer Event, JAKT for Crave NW, JAKT for the farmer's market, JAKT for a Spokane Valley Events funding pool, Northwest Winterfest, Spokane County Fair and Expo Center, Spokane Valley Heritage Museum, Spokane Valley Summer Theatre, Valleyfest, and Valleyfest Cycle Celebration. 1 One application was received from the City of Spokane Valley for the 1.3% tax for a new Expo Building at the Spokane County Fair and Expo Center.The request was for the entire fund balance of $2,986,573 as of December 30, 2020, plus all future revenues and allocations to Fund #104 until the project was completely funded. Council authorized staff to submit this application to the LTAC at the August 10, 2021 Council meeting. The City also made a presentation to the LTAC for this project. Following applicant presentations, the LTAC discussed both the merits of making particular awards to various applicants and how they felt revenues should be allocated. Ultimately, the LTAC recommended the following awards be advanced to the City Council for consideration: Amount Amounts Applicant Requested Recommended Applicants for 2% Tax: 1) HUB Sports Center 55,000 55,000 2) JAKT-Brews,Beats &Eats 15,000 6,500 3) JAKT-Craft Beer 15,000 6,000 4) JAKT-Crave! 50,000 30,000 5) JAKT-Farmer's Market 25,000 17,000 6) JAKT-Spokane Valley Events 400,000 0 7) Northwest Winterfest 45,000 45,000 8) Spokane Co Fair and Expo Center 75,000 64,000 9) Spokane Valley Heritage Museum 40,000 27,000 10) Spokane Valley Summer Theatre 20,000 20,000 11) Valleyfest 30,000 24,000 12) Valleyfest Cycle Celebration 5,000 3,500 Transfer to Fund#104 (1.3(3/0 tax) 273,000 775,000 571,000 Total Available for Awards in 2022 from 2% Tax 571,000 Applicants for 1.3% Tax: 1) City of Spokane Valley 2,986,573 4,948,533 273,000 Total Available for Awards in 2022 from 1.3% Tax 5,221,533 Amount recommended 3,500,000 Fund#104 (1.3% Tax) balance remaining 1,721,533 These recommendations were made in two motions. The first motion included the awards from the 2% lodging tax from Fund #105 as noted above. As part of the first motion, the LTAC also recommended transferring $273,000 from Fund #105 to Fund #104. The first motion passed unanimously. The second motion was regarding funding for the new Expo Center at the Fairgrounds as a capital project from the 1.3% lodging tax in Fund #104. There was significant discussion by the LTAC regarding this project. Committee member Repetti stated that he would have preferred to have 2 funding for improvements to Plantes Ferry or other sports venues. There was also opposition to committing future revenues to this project in order to fully fund the project as was requested in the application, and there was a preference to provide a flat funding level for partial project funding. Ultimately, a motion passed with one committee member opposing to recommend allocating $3,500,000 to the Expo Building as presented by staff, not to preclude the LTAC from re-addressing further needs at the October 2022 meeting. At times some organizations apply for funding through both the Outside Agency and the Lodging Tax award processes. The HUB, JAKT, Northwest Winterfest, the Spokane Valley Heritage Museum, the Spokane Valley Summer Theatre, and Valleyfest all applied for Lodging Tax Funding for 2022, as well as for 2022 Outside Agency funding, and were awarded $5,000, $12,051, $4,571, $11,622, $7,643, and $17,214, respectively, in Outside Agency funding at the October 26, 2021 Council meeting. OPTIONS: The options for City Council action have been viewed as primarily being limited to either (1) approving some or all of the listed recipients and amounts recommended by the LTAC or (2) not approving any recipients and having the LTAC revise its recommendation for further City Council action. However, under RCW 67.28.1817, a municipality may propose "a change in the use of revenue received under [RCW 67.28]," but must submit the proposal to the LTAC for review and comment. Then, the LTAC must be given at least 45 days to review and provide comments prior to final action by the municipality. This allows the City Council to conduct its own review of the materials submitted, including the minutes and recommended amounts by the LTAC, to come up with its own proposed distribution of the revenue for any of the applicants, which may be the same or different from the LTAC recommendation. If it is different, the City must give the LTAC 45 days to review and provide comments on the proposed revised distribution before taking final action. RECOMMENDED ACTION OR MOTION: No action is required at this time. This topic will come back before the City Council on December 14, 2021, when a motion consideration will be requested. BUDGET/FINANCIAL IMPACTS: The 2022 Budget includes total revenues of $1,000,000 in lodging taxes, including $600,000 from Fund #105 from the 2% tax and $400,000 in Fund #104 from the 1.3% tax. Total expenditures are budgeted at $601,000 in Fund #105, including $30,000 to offset advertising at CenterPlace and up to $571,000 to be allocated through this award process. The $571,000 includes the $298,000 available for recommended awards by the LTAC as well as $273,000 the LTAC recommended for the Council to transfer into Fund #104. The fund balance at the conclusion of 2022 is expected to be $165,016 in Fund #105, which should be adequate to cover cash flow needs, and $4,948,573 in Fund #104. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Minutes of October 13, 2021, Lodging Tax Advisory Committee meeting. • Chart reflecting a history of hotel/motel tax receipts from January 2012 through August 2021. • Fund #105 — Hotel/Motel Tax — history of revenues and expenditures — 2017 through 2020 Actuals and 2021 and 2022 Budgets. • Fund #104 — Hotel/Motel Tax — history of revenues and expenditures — 2017 through 2020 Actuals and 2021 and 2022 Budgets. • Lodging Tax Application and Award History for the years 2003 through 2021. • Separately distributed binder titled "Lodging Tax 2022" that was also utilized by the Lodging Tax Advisory Committee at their October 13, 2021 meeting. 3 MINUTES LODGING TAX ADVISORY COMMITTEE MEETING October 13, 2021 8:00 a.m. Spokane Valley City Hall Council Chambers 10210 East Sprague Avenue Attendance: Lodging Tax Advisory Committee Members: Staff: Chair:Mayor Ben Wick Chelsie Taylor,Finance Director Gregory Repetti, The HUB Erik Lamb, Deputy City Attorney Wayne Brokaw, Spokane County Fair Board Sarah Farr, Financial Specialist Grant Guinn, Tru by Hilton Christine Bainbridge, City Clerk Amanda Alcamo, Oxford Suites Chair Mayor Wick called the meeting to order at 8:00 a.m.and welcomed everyone,after which there were self-introductions. Deputy City Attorney Lamb introduced himself, and explained that as appointed officials, members of this committee are subject to laws such as those dealing with open government; and he went through his Open Public Government, PowerPoint training for Committee members, explaining the various portions of the Public Records Act, and the Open Public Meetings Act. Finance Director Taylor explained that there are two different funds connected with lodging tax, one is the 2%typically granted, with the other fund to be used for capital projects; and said if there are no objections, that will be a separate discussion afterwards.There were no objections. Finance Director Taylor then gave an overview of the contents of the notebook, adding that the 13th application is one submitted by the City of Spokane Valley,which seeks funds from the capital projects fund. Presentations were made in the following order: 1. HUB Sports Center—Mr. Phil Champlin The HUB seeks$55,000 for recruiting events to the facility.There was some discussion about how lodging nights are calculated and that it is difficult to get the number of room nights from the hotels. [At 8:58 a.m. Mr. Repetti excused himself from the room.] 2-6 JAKT Mr.Tom Stebbins and Ms. Katie Lee JAKT seeks (2) $15,000 for Brews, Beats & Eats; (3) $15,000 for the Craft Beer Festival; (4) $50,000 for Crave!; (5)$25,000 for Farmers Market;and(6) $400,000 for Spokane Valley Events. After giving a brief history of his company,Mr. Stebbins noted that the $400,000 for Spokane Valley Events would be a type of shark tank for events as he'll work with event producers; said the idea is to have an event at CenterPlace every weekend, which will give some continuity and keep people in Spokane Valley; said this would be a type of giant fund for all events to work from. Regarding farmers market, they said the idea is to have a Tuesday evening event in addition to the Friday event. Again the topic about the difficulty of how to calculate room nights was broached. 7.Northwest Winterfest Ms. Sam Song The applicants seek $45,000 to assist with this event, to include operation and marketing. Mr. Song explained that this year will be a full-scale event; said he is asking less than the previous year,with the goal to eventually have this event self-sustainable; said parking is a challenge which is why they have changed the location to the fairgrounds. [Mr. Repetti returned to the meeting at 9:40 a.m.] 8. Spokane County Fair and Expo Center—Ms. Erin Gurtel and Ms. Rachelle Buchanan. The applicants seek $75,000 to market and advertise the Fair and interim events to an audience in and beyond the Spokane area. After showing their brief video, the applicants explained that the fair is an LTAC Minutes October 13,2021 Page 1 of 4 important occasion and the goal is to come back full speed next year; said that many vendors come from out of town so they stay at area properties. Mr. Guinn said that he-will ask that the topic of how hoteliers can accurately count room nights, be included as discussion on a future TPA meeting. Mayor Wick called for a recess at 10:05 a.m. The meeting reconvened at 10:11 a.m. 9. Spokane Valley Heritage Museum Ms. Jayne Singleton The applicants seek$40,000 to assist in their tourism promotion and marketing efforts to include the 2020 rack card, and for the Smithsonian exhibit. 10. Spokane Valley Summer Theatre—Dr. Mamie Rorhol in The applicants are seeking$20,000 to increase television advertising to various regions. Dr. Rorholm said this is not a community theatre, but a professional theater; said they normally have their performances in Central Valley High School which is difficult now as school is back in session;said they have doubled their budget in their six years of existence with 2019 as their most successful season; said their goal is to have the Best of Broadway caliber but to do it here and keep the revenue here;that they hope to start television marketing and might do billboards as well. 11. Valleyfest—Ms. Peggy Doering Valleyfest seeks $30,000 to assist with marketing materials for the festival. Ms. Doering went over some of the history of Valleyfest's 32 years; mentioned increases in costs to produce the event and that basic wages will increase in 2022; she spoke of the impact on tourism as people who visit Valleyfest typically do other local spending. In response to questions about room night numbers, Ms. Doering explained about the 2019 figures based on those from Gonzaga's School of Business. 12. Valleyfest—Cycle Celebration—Ms. Peggy Doering Cycle Celebration seeks$5,000 to assist in the marketing of this event. Ms.Doering said that the event was cancelled about two weeks prior to the 2020 event;that they were preparing for and excited about the 2021 event and had local bike shops help in advertising. 13. City of Spokane Valley—Capital Construction For the City's project of a new Fairgrounds Expo Center, the City is requesting approximately $3 million from Fund I04 reserves plus all future revenue collections in and allocations to that fund until the project is completed; with an estimated total project budget of$10 million. Mr. Basinger noted the City's match includes $1 million from City reserves, and $750,000 in state funding. Mr. Basinger went through his PowerPoint explaining about the opportunity for future expansion of the Spokane County Expo Center; mentioned the analysis of retail sales that was previously conducted;explained about other possible projects and that City Council determined that the Expo Expansion project could move forward relatively quickly, and would have a high return on investments since the County would not only provide the land, but would maintain and operate the facility as well.He explained that the project would construct a 30,000 square foot new structure which would be connected to the existing exposition building, at a cost of approximately$10 million.His slides showed an external and an internal site analysis;and among other amenities, a restaurant space of about 4,000 square feet,which would be a stand-alone facility operating year round; he noted the restaurant would provide a place for people to go before and/or after a baseball game as well as after other Fairground events. Mr. Basinger stated that there is approximately $3 million in that fund balance, and that the idea is to earmark all future allocations in that fund until the facility is paid; he noted the City is also pursuing other funding opportunities, but the intent is to quickly fund the facility;he said the City has set aside $1 million in the 2022 budget to begin the design process and will move forward once necessary funds are secured. LTAC Minutes October 13,2021 Page 2 of 4 Mr.Repetti stated his objection to depleting the fund;and mentioned the depreciating value of the building over thirty years. Mr. Hohman said there are a variety of potential projects, and focusing on this project doesn't mean there will never be a decision to work on anything else; he said this project rose to the top and according to the economic studies,will actually make money.He noted other things are progressing at different speeds and we are not walking away from other projects, but would like to tackle this first then maybe look at some others. He also stated that staff is looking for any type of additional revenues and will be having more discussions with Council depending on how grant opportunities work out;he also noted we don't want to tie up these projects in bonds.Finance Director Taylor stated that staff put forward the request in the application,but the Committee may make different allocation recommendations,or could even decide on a flat amount without commitment of any future funds,or for a period years;she also noted that in order to use capital funds,the facility must be owned by a municipality or a Public Facilities District. Mr. Repetti asked if we would be competing with ourselves since we have CenterPlace as an event facility.Mr.Hohman replied that there are many events conducted at the fairgrounds, and that he does not see it as competing against ourselves. There was also discussion about the viability of a stand-alone restaurant in an area with fast food. Mr. Basinger said again according to the studies, there is a strong demand for such a restaurant; and having the co-location of a baseball field makes him confident the restaurant would be well used. Mr. Hohman said studies show it will generate enough money to sustain itself; at least break even or better for Spokane County; and Mr. Basinger reminded the committee that the County will handle the operation and maintenance so for us, this is a great investment. When asked her opinion, Ms. Erin Gurtel of the Fairgrounds said they haven't always been able to accommodate all existing events; said she has been with the Fair& Expo Center for seventeen years,and there is definitely a need for this type of structure. Lodging Tax Advisory Committee members develop funding recommendations Director Taylor said she will give members a few minutes to complete their individual recommendations, and once complete, to please hand them back to her. Mayor Wick called for a recess at 11:55 a.m., and convened the meeting at 12:07 p.m. Lodging Tax Advisory Committee member discussion and award recommendation Members gave their recommendations to Ms. Taylor who entered them on the spreadsheet; she said the final product will be a formal LTAC motion that states specifically how much money should be awarded to each applicant.After entering all figures, Ms.Taylor also entered the average amount for each applicant. It was moved by Mr. Repetti, seconded and unanimously agreed to accept the amounts on the spreadsheets. The amounts are as follows: 1. HUB $55,000 2. JAKT Brews,Beats & Eats $6,500 3. JAKT—Craft Beer $6,000 4. JAKT Crave! $30,000 5. JAKT Farmer's Market $17,000 6. JAKT Spokane Valley Events 0 7.Northwest Winterfest $45,000 8. Spokane Co.Fair&Expo $64,000 9. SV Heritage Museum $27,000 10. SV Summer Theatre $20,000 11. Valleyfest $24,000 12.Valleyfest Cycle Celebrate $3,500 $298,000 Transfer to Fund#104 (1.3%tax) $273,000 $571,000 Discussion moved to the capital projects fund. Finance Director Taylor said the projection for Fund 104 is about$4.5 million depending on the economy. Mayor Wick commented that the City has put$1.7 million toward the project, and that he too doesn't want to use bond revenues; said he is also not sure he wants to LTAC Minutes October 13,2021 Page 3 of 4 obligate future dollars; that he was surprised that the State's contribution was only $750,000; and that supporting the project with our funds could make for a stronger ARPA grant application; he also noted Council wanted to focus on just this project before starting another project.Mayor Wick stated that several businesses have indicated it would be nice to have a restaurant and/or a meeting place in that area; and it was mentioned that the expansion of the North/South corridor will bring more traffic to that area. Mr. Repetti said there will be a loss in the restaurant in the short time as the area struggles from transferring from light industrial into something more than a ball park; and that he still has a problem in committing all future funds; said further work needs to be done to figure out how to fund this; said he is disappointed in Council and maybe this committee should send a message to put this back on the table; or perhaps figure out how to do this project and to perhaps consider Plantes Ferry as well. Ms. Taylor said that when this comes before Council, the minutes of this meeting will be included, but she can include any other communication from this committee, not necessarily as a motion. Mayor Wick said that the application is for the project to be fully funded.Deputy City Attorney Lamb stated that if the committee wants to consider another project,the law provides that the LTAC must do so from applicants. It was moved by Mr. Repetti and seconded to allocate$3.5 million to the Fair&Expo Building as presented by staff, not to preclude this committee from re-addressing f irther needs at the October 2022 meeting. Vote by acclamation: in favor: Mayor Wick, and Committee members Brokaw, Guinn, and Alcamo. Opposed: Committee member Repetti. Motion passed. It was moved by Mr. Repetti, seconded and unanimously agreed to adjourn. The meeting adjourned at 1:20 p.m. Respectfully submitted, Christine Bainbridge, Spokane Valley City Clerk LTAC Minutes October 13,2021 Page 4 of 4 P:1FinancelFinance Activity Reports\Tax Revenue\Lodging Tax120211105 hotel motel tax 2021 CITY OF SPOKANE VALLEY.WA 10/1/2021 Hotel/Motel Tax Receipts through- August 1 A Actual for the years 2012 through 2021 �� " E 2020 to 2021 Difference 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ % January 21,442 24,185 25,425 27,092 31,887 27,210 28,752 31,865 36,203 26,006 (10,197) (28.17%) February 21,549 25,975 26,014 27,111 27,773 26,795 28,878 32,821 31,035 31,041 6 0.02% March 25,655 27,739 29,384 32,998 34,330 31,601 31,906 40,076 37,395 30,536 (6,859) (18.34%) April 52,130 40,979 48,246 50,455 52,551 52,242 57,664 59,117 24,959 44,476 19,517 78.20% May 37,478 40,560 41,123 44,283 50,230 50,112 51,777 53,596 16,906 49,002 32,096 189.85% June 43,971 47,850 52,618 56,975 55,060 60,637 62,048 73,721 28,910 66,262 37,352 129.20% July 52,819 56,157 61,514 61,809 65,007 69,337 71,865 84,628 41,836 94,495 52,659 125,87% August 57,229 63,816 70,384 72,697 73,700 76,972 79,368 91,637 49,772 101,171 51,899 103.27% Total Collections 312,273 327,262 354,707 373,420 390,538 394,906 412,258 467,461 267,016 442,989 175,973 65.90% September 64,299 70,794 76,100 74,051 70,305 80,173 79,661 97,531 59,116 0 October 43,699 43,836 45,604 49,880 55,560 56,631 61,826 77,932 50,844 0 November 39,301 42,542 39,600 42,376 46,393 47,090 52,868 59,252 39,694 0 December 30,432 34,238 33,256 41,510 33,478 37,180 40,363 41,675 26,573 0 Total Collections 490,004 518,672 549,267 581,237 596,374 615,980 646,976 743,851 443,243 442,989 Budget Estimate 430,000 490,300 530,000 550,000 580,000 580,000 580,000 600.000 346,000 346,000 Actual over(under)budg 60,004 28,672 19,267 31,237 16,374 35,980 66,976 143,851 97,243 96,989 Total actual collections as a%of total budget 113.95% 105.85% 103.64% 105.68% 102.82% 106.20% 111,55% 123.98% 128.10% n/a %change in annual total collected 7.08% 5.85% 5.90% 5.82% 2.60% 3.29% 5.03% 14.97% (40.41%) n/a %of budget collected through August 72.62% 66.79% 65.93% 67.89% 67.33% 68.09% 71.08% 77.91% 77.17% 128.03% %of actual total collected through August 63.73% 63.10% 64.58% 64.25% 65.49% 64.11% 63.72% 62.84% 60.24% n/a Chart Reflecting History of Collections through the Month of August August 500,000 450,000 400,000 13 August 350,000 - - - July 300,000 ..Y1 ■June 250,000 c r; ,+ - •May 200,000 « ■April � et 150,000 - March 100,000 ■February 50,000 - i ■January 0 , , , - , 2012 2013 2014 2015 2016 2017 2018, 2019 2020 2021 Page 23 P:\Finance\2022 Budget\Budget Worksheets\105 Rev and exp CITY OF SPOKANE VALLEY,WA 10/7/2021 2021 Budget Amendment and 2022 Budget Fund#105-Hotel 1 Motel Tax Fund - Actuals for 2017 through 2020 - 2021 and 2022 Budgets 2021 Actual As 2022 2017 I 2018 2019 2020 Adopted Annualized Budget Revenues Hotel/Motel Tax 615,980 646,975 743,852 443,243 346,000 750,000 600,000 Investment Interest 3,549 7,058 8,459 2,705 6,000 718 1,000 Subtotal revenues 619,529 654,033 752,311 445,948 352,000 750,718 601,000 Expenditures Transfers out-#001 CenterPlace 15,778 26,037 30,000 11,390 30,000 30,000 30,000 Transfers out-#104 250,000 250,000 275,000 0 453,840 1,157,000 0 Tourism Promotion 351,674 321,934 207,000 154,082 224,400 - 197,400 571,000 Subtotal expenditures 617,452 597,971 512,000 165,472 708.240 1,384,400 601,000 Revenues over(under) expenditures 2,077 56,062 240,311 280,476 (356,240) (633,682) 0 Beginning fund balance 219,790 - 221,867 277,929 518,240 . 798,716 > 798,716 165,033 Ending fund balance 221,867, 277,929` 518,240--'' 798,716/ 442,476 165,033/ 165,033 2021 Awards by Agency Historic Flight Foundation 15,000 HUB Sports Center 45,000 JAKT- Brews, Beats& Eats 2,600 JAKT-Crave NW 15,200 JAKT-Farmers Market 7,200 Northwest Winterfest 49,000 Spokane County Fair& Expo-marketing 49,000 Valleyfest-Cycle Celebration 1,800 Valleyfest-marketing 12,600 - 197,400 for LTAC P:\Finance\2022 Budget\Budget Worksheets\104 CITY OF SPOKANE VALLEY,WA 10/8/2021 2021 Budget Amendment and 2022. Budget Fund#104-Hotel/Motel Tax-Tourism Facilities Fund - Actuals for 2017 through 2020 - 2021 and 2022 Budgets 2021 Actual As 2022 2017 2018 2019 2020 Adopted Annualized Budget Revenues Hotel/Motel Tax 400,509 415,295 454,283 283,721 213,000 400,000 400,000 Investment Interest 6,854 24,182 43,589 11,908 24,000 2,460 2,500 Transfers in-#105 250,000 250,000 275,000 0 453,840 1,157,000 0 Total revenues 657,363 689,477 772,872 295,629 690,840 1,559,460 402,500 Expenditures Tourism Facilities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Revenues over(under) expenditures 657,363 689,477 772,872 295,629 690,840 1,559,460 402,500 Beginning fund balance 571,232 1,228,595 1,918,072 2,690,944 7 2,986,573 2,986,573 /1 4,546,033 Ending fund balance 1,228,595 1,918,072 2,690,944 2,986,573 3,677,413 4,546,033 4,948,533 for LTAC P:\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Lodging Tax Award History 03-21 CITY OF SPOKANE VALLEY,WA Lodging Tax Application I Award History For the years 2003 through 2021 2003 2004 2005 2006 AGENCIES Application I Award Application I Award Application I Award Application 1 Award Armed Forces&Aerospace Museum 3,327 0 2,531 0 0 0 0 0 Burke Marketing 0 0 0 0 0 0 0 0 CenterPlace-marketing 0 0 0 40,000 0 0 0 40,000 CenterPlace-marketing to regional meeting planners 0 0 0 0 0 0 0 0 Chamber of Commerce 0 0 0 0 15,440 0 15,440 5,000 City of Spokane Valley-Directed Marketing 0 0 0 0 0 D 0 0 City of Spokane Valley-Tourism Study 0 0 0 0 0 0 0 0 City of Spokane Valley-Volleyball courts 0 0 0 0 0 0 0 0 Evergreen Regional Volleyball Court Expansion 0 0 D 0 0 0 0 0 Fair&Expo Marketing 55,376 17,500 35,000 25,000 21,000 18,000 D 0 Fairgrounds 0 0 21,000 15,000 0 0 0 0 Family Guide 0 0 0 0 0 0 0 0 Friends of Centennial Trail 23,480 0 2,000 2,000 0 0 9,000 0 Historic Flight Foundation 0 0 0 0 0 0 0 0 HUB Sports Center 0 0 0 0 0 0 0 0 Inland Dance Association 0 0 0 0 0 0 2,535 0 Inland NW Sr.Wellness Conference 12,500 0 0 0 0 0 0 0 JAKT-Brews,Beats,&Eats 0 0 0 0 0 0 0 0 JAKT-Crave NW 0 0 0 0 0 0 0 0 JAKT-Farmers Market 0 0 0 0 0 0 0 0 JAKT-Oktoberfest 0 0 0 0 0 0 0 0 Latah Creek Wine Cellars 20,000 0 0 0 0 0 0 0 Liberty Lake Rotary Club 0 0 0 0 0 0 0 0 Northwest Winterfest 0 0 0 0 0 0 0 0 Ptantes Ferry Park 0 0 71,842 20,000 0 0 23,876 0 Six Bridges Arts Association 0 0 0 0 0 0 0 0 Splash-Down Family Waterpark 230,000 0 0 0 0 0 0 0 Spo Can 0 0 0 0 0 0 0 0 Spokane Arts Commission 15,000 0 0 0 0 0 0 0 Spokane County Fair&Expo Center 0 0 0 0 0 0 0 0 Spokane County Fair&Expo Center-Winter Glow Spe 0 0 0 0 0 0 0 0 Spokane County Parks,Recreation,&Golf 0 0 0 0 0 0 0 0 Spokane Horse Breeders of inland NW 5,830 0 0 0 0 0 0 0 Spokane Polo Club 30,100 0 0 0 0 0 0 0 Spokane Regional Sports Commission 120,000 52,200 150,000 100,000 100,000 75,000 100,000 84,000 Spokane River Forum 0 0 0 0 0 0 0 0 Spokane Symphony 20,000 0 20,000 0 0 0 0 0 Spokane Valley Heritage Museum 40,000 1,000 0 0 22,100 10,000 49,104 5,000 Spokane Valley Soccer Club 0 0 0 0 0 0 0 0 Spokane Winery Association 3,285 0 8,250 2,000 0 0 0 0 Sports USA Sports Complex 103,000 0 0 0 0 0 0 0 SV Junior Soccer Association 96,542 24,300 71,842 0 0 0 4,000 4,000 U.S.Figure Skating 0 0 0 0 0 0 0 0 Valleyfest 19,724 2,800 49,700 0 27,200 15,000 25,900 15,000 Valleyfest-Cycle Celebration 0 0 0 0 0 0 0 0 Valleyfest(additional for Spring 07(for float) 0 0 0 0 0 0 0 0 Visit Spokane(Spokane Vicitor Convention BurcNou) 200,000 83,700 250,000 150,000 200,000 136,000 200,000 165,000 WebMaker 39,000 0 0 0 0 0 0 0 YMCA 50,000 18,000 12,000 6,000 12,000 5,000 17,000 7,000 YMCA Skateboard Park 0 18,000 0 0 0 0 0 0 Transfer out to Fund#104 0 0 0 0 0 0 0 0 Total 1,090,264 218,000 694,165 360,000 397,740 260,000 446,855 325,000 Page 1of5 P:\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Lodging Tax Award History 03-21 CITY OF SPOKANE VALLEY,WA Lodging Tax Application!Award History For the years 2003 through 2021 2007 2008 2009 2010 AGENCIES 07 Apply 07 Award Sprg 07.Apply Sprg 07 Awed Application I Award Application I Award Application I Award Armed Forces&Aerospace Museum 0 0 0 0 0 0 0 0 0 0 Burke Marketing 0 0 147,500 0 0 0 0 0 0 0 CenterPlace-marketing 0 40,000 0 0 90,000 90,000 0 90,000 0 37,500 CenterPlace-marketing to regional meeting planners 0 0 0 0 0 0 0 0 0 0 Chamber of Commerce 50,000 50,000 50,000 50,000 155,000 0 0 0 0 0 City of Spokane Valley-Directed Marketing 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley-Tourism Study 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley-Volleyball courts 0 0 0 0 0 0 0 0 0 0 Evergreen Regional Volleyball Court Expansion 0 0 0 0 0 0 0 0 0 0 Fair&Expo Marketing 20,000 20,000 0 0 30,000 30,000 30,000 18,250 0 0 Fairgrounds 0 0 0 0 0 0 0 0 0 0 Family Guide 0 0 0 0 0 0 0 0 0 0 Friends of Centennial Trail 0 0 0 0 0 0 0 0 0 0 Historic Flight Foundation 0 0 0 0 0 0 0 0 0 0 HUB Sports Center 0 0 0 0 0 0 0 0 0 0 Inland Dance Association 0 0 2,635 0 0 0 0 0 0 0 Inland NW Sr.Wellness Conference 0 0 0 0 0 0 0 0 0 0 JAKT-Brews,Beats,&Eats 0 0 0 0 0 0 0 0 0 0 JAKT-Crave NW 0 0 0 0 0 0 0 0 0 0 JAKT-Farmers Market 0 0 0 0 0 0 0 0 0 0 JAKT-Oktoberfest 0 0 0 0 0 0 0 0 0 0 Latah Creek Wine Cellars 0 0 0 0 0 0 0 0 0 0 Liberty Lake Rotary Club 0 0 0 0 0 0 0 0 0 0 Northwest Winterfest 0 0 0 0 0 0 0 0 0 0 Plantes Ferry Park 30,000 0 0 0 0 0 0 0 0 0 Six Bridges Arts Association 15,000 12,500 0 0 0 0 0 0 0 0 Splash-Down Family Waterpark 0 0 0 0 0 0 0 0 0 0 Spo Con 0 0 0 0 0 0 0 0 0 0 Spokane Arts Commission 0 0 0 0 0 0 0 0 0 0 Spokane County Fair&Expo Center 0 0 0 0 0 0 0 0 0 0 Spokane County Fair&Expo Center-Writer Glow Spe 0 0 0 0 0 0 0 0 0 0 Spokane County Parks,Recreation,&Golf 0 0 0 0 0 0 0 0 0 0 Spokane Horse Breeders of Inland NW 0 0 0 0 0 0 0 0 0 0 Spokane Polo Club 0 0 0 0 0 0 0 0 0 0 Spokane Regional Sports Commission 100,000 100,000 0 0 175,000 145,000 190,000 116,000 150,000 120,000 Spokane River Forum 0 0 0 0 0 0 0 0 0 0 Spokane Symphony 0 0 0 0 0 0 0 0 0 0 Spokane Valley Heritage Museum 27,450 10,000 0 0 0 0 30,260 3,250 11,600 5,000 Spokane Valley Soccer Club 0 0 0 0 0 0 0 0 0 0 Spokane Winery Association 0 0 7,500 7,500 8,300 8,300 9,000 0 0 0 Sports USA Sports Complex 0 0 0 0 0 0 0 0 0 0 SV Junior Soccer Association 0 0 17,000 30,300 0 0 0 0 0 0 U.S.Figure Skating 0 0 0 0 0 15,000 0 15,000 0 0 Valleyfest 30,000 25,000 5,000 5,000 40,000 30,000 50,000 27,500 50,000 30,000 Valleyfest-Cycle Celebration 0 0 0 0 0 0 0 0 0 0 Valleyfest(additional for Spring 07(for float) 0 0 6,000 0 0 0 0 0 0 0 Visit Spokane(Spokane Visitor Convention Bureau) 175,000 175,000 78,000 78,000 325,000 306,000 336,000 236,000 275,000 195,000 WebMaker 0 0 0 0 0 0 0 0 0 0 YMCA 0 0 0 0 0 0 0 0 0 0 YMCA Skateboard Park 0 0 0 0 0 0 0 0 0 0 Transfer out to Fund#104 0 0 0 0 0 0 0 0 0 0 Total 447,450 432,500 313,535 170,800 823,300 624,300 645,260 505,000 486,600 387,500 Page 2 of 5 P:\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Lodging Tax Award History 03-21 CITY OF SPOKANE VALLEY,WA Lodging Tax Application/Award History For the years 2003 through 2021 2011 ` 2012 2013 2014 AGENCIES Application I Award Rnd 1 App I Rnd 1 Awrd I Rnd 2 App I Rnd 2 Awrd Application I Award Application I Award Armed Forces&Aerospace Museum 0 0 0 0 0 0 0 0 0 0 Burke Marketing 0 0 0 0 0 0 0 0 0 0 CenterPlace-marketing 0 0 0 30,000 0 0 0 30,000 0 30,000 CenterPlace-marketing to regional meeting planners 0 0 0 0 0 0 0 0 0 0 Chamber of Commerce 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley-Directed Marketing 0 0 0 0 0 0 0 55,000 0 0 City of Spokane Valley-Tourism Study 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley-Volleyball courts 0 0 0 0 0 0 0 0 0 0 Evergreen Regional Volleyball Court Expansion 0 0 0 0 0 0 0 0 7,500 7,300 Fair&Expo Marketing 0 0 0 0 0 0 0 0 0 0 Fairgrounds 0 0 0 0 0 0 0 0 0 0 Family Guide 0 0 0 0 0 0 0 0 0 0 Friends of Centennial Trail 0 0 0 0 0 0 0 0 6,600 0 Historic Flight Foundation 0 0 0 0 0 0 0 0 0 0 HUB Sports Center 40,000 40,000 50,000 42,600 0 0 50,000 21,100 40,000 36,000 Inland Dance Association 0 0 0 0 0 0 0 0 0 0 Inland NW Sr.Wetness Conference 0 0 0 0 0 0 0 0 0 0 JAKT-Brews,Beats,&Eats 0 0 0 0 0 0 0 0 0 0 JAKT-Crave NW 0 0 0 0 0 0 0 0 0 0 JAKT-Farmers Market 0 0 0 0 0 0 0 0 0 0 JAKT-Oktoberfest 0 0 0 0 0 0 0 0 0 0 Latah Creek Wine Cellars 0 0 0 0 0 0 C 0 0 0 Liberty Lake Rotary Club 0 0 0 0 5,000 0 0 0 5,000 0 Northwest Winter€est 0 0 0 0 0 0 0 0 0 0 Plantes Ferry Park 0 0 0 0 0 0 0 0 0 0 Six Bridges Arts Association 0 0 0 0 0 0 0 0 0 0 Splash-Down Family Waterpark 0 0 0 0 0 0 0 0 0 0 Spo Con 0 0 70,131 0 0 0 0 0 0 0 Spokane Arts Commission C 0 0 0 50,000 0 0 0 0 0 Spokane County Fair&Expo Center 0 0 0 0 30,000 25,900 30,000 27,800 50,000 39,800 Spokane County Fair&Expo Center-Winter Glow Spe 0 0 0 0 0 0 0 0 0 0 Spokane County Parks,Recreation,&Golf 0 C 0 0 0 0 0 0 0 0 Spokane Horse Breeders of Inland NW 0 0 0 0 0 C 0 0 0 0 Spokane Polo Club 0 0 0 0 0 0 0 0 0 0 Spokane Regional Sports Commission 165,000 165,000 200,000 185,000 0 0 200,000 150,200 200,000 183,800 Spokane River Forum 0 0 0 0 0 0 0 0 0 0 Spokane Symphony 0 0 0 0 0 0 0 0 0 0 Spokane Valley Heritage Museum 5,000 5,000 5,000 3,900 5,000 1,100 12,000 6,400 20,000 13,100 Spokane Valley Soccer Club 0 0 0 0 25,000 0 0 0 0 0 Spokane Winery Association 0 0 0 0 0 0 0 0 0 0 Sports USA Sports Complex 0 0 0 0 0 0 0 0 0 0 SV Junior Soccer Association 0 0 0 0 0 0 0 0 0 0 U.S.Figure Skating 0 0 0 0 0 0 0 0 0 0 Valleyfest 50,000 36,000 50,000 0 50,000 30,000 50,000 35,200 50,000 20,000 Valleyfest-Cycle Celebration 0 0 0 0 0 0 0 0 0 0 Valleyfest(additional for Spring 07(for float) 0 0 0 0 0 0 0 0 0 0 Visit Spokane(Spokane Visitor Convention Bureau) 250,000 250,000 0 0 275,000 251,720 350,000 184,600 280,000 247,000 WebMaker 0 0 0 0 0 0 0 0 0 0 YMCA 0 0 0 0 0 0 0 0 0 0 YMCA Skateboard Park 0 0 0 0 0 0 0 0 0 0 Transfer out to Fund#104 0 0 0 0 0 0 0 0 0 0 Total 510,000 496,000 375,131 261,500 440,000 308,720 692,000 510,500 659,100 577,000 Page 3 of 5 P:\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Lodging Tax Award History 03-21 CITY OF SPOKANE VALLEY,WA Lodging Tax Application 1 Award History For the years 2003 through 2021 2015 2016 2017 2018 2019 AGENCIES Application 1 Award Application I Award Application I Award Application I Award Application I Award Armed Forces&Aerospace Museum 0 0 0 0 0 0 0 0 0 0 Burke Marketing 0 0 0 0 0 0 0 0 0 0 CenterPlace-marketing 0 30,000 0 30,000 0 30,000 0 30,000 0 30,000 CenterPlace-marketing to regional meeting planners 30,000 17,000 0 0 0 0 0 0 0 0 Chamber of Commerce 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley-Directed Marketing 0 0 0 0 0 0 0 0 0 0 City of Spokane Valley-Tourism Study 0 D 86,750 80,000 0 0 0 0 0 0 City of Spokane Valley-Volleyball courts 120,000 68,000 160,000 60,650 233,508 0 238,000 0 0 0 Evergreen Regional Volleyball Court Expansion 0 0 0 0 0 0 0 0 0 0 Fair&Expo Marketing 0 0 0 0 0 0 0 0 0 0 Fairgrounds 0 0 0 0 0 0 0 0 0 0 Family Guide 0 0 0 0 35,000 0 0 0 0 0 Friends of Centennial Trail 0 0 0 0 0 0 0 0 0 0 Historic Flight Foundation 0 0 0 0 0 0 0 0 0 0 HUB Sports Center 40,000 40,000 40,000 40,000 40,000 40,000 54,000 48,400 55,100 52,000 Inland Dance Association 0 0 0 0 0 0 0 0 0 0 Inland NW Sr.Wellness Conference 0 0 0 0 0 0 0 0 0 0 JAICT-Brews,Beats,&Eats 0 0 0 0 0 0 0 C 0 0 JAI-CT-Crave NW 0 0 0 0 0 0 50,000 30,000 60,000 21,500 JAKT-Farmers Market 0 0 0 0 0 0 0 0 15,000 7,000 .IAKT-Oktoberfest 0 0 0 0 0 0 20,000 10,000 20,000 5,000 Latah Creek Wine Cellars 0 0 0 0 0 0 0 0 0 0 Liberty Lake Rotary Club 0 0 0 0 0 0 0 0 0 0 Northwest Winterfest 0 0 0 0 0 0 0 0 0 0 Plantes Ferry Park 0 0 0 0 0 0 0 0 0 0 Six Bridges Arts Association 0 0 0 0 0 0 0 0 0 0 Splash-Down Family Waterpark 0 0 0 0 0 0 0 0 0 0 Spo Con 0 0 0 0 0 0 0 0 0 0 Spokane Arts Commission 0 0 0 0 0 0 0 0 0 0 Spokane County Fair&Expo Center 44,000 44,000 100,000 45,000 60,000 47,000 60,000 50,000 60,000 55,000 Spokane County Fair&Expo Center-Winter Glow Spe 0 0 0 0 20,000 2.170 0 0 0 0 Spokane County Parks,Recreation,&Golf 0 0 0 0 0 0 0 0 75,000 35,000 Spokane Horse Breeders of Inland NW 0 0 0 0 0 0 0 0 0 0 Spokane Polo Club 0 0 0 0 0 0 0 0 0 0 Spokane Regional Sports Commission 200,000 120,000 200,000 121,600 200,000 115,600 200,000 80,000 200,000 0 Spokane River Forum 1,000 1,000 0 0 0 0 0 0 0 0 Spokane Symphony 0 0 0 0 0 0 0 0 0 0 Spokane Valley Heritage Museum 28,209 18,400 35,800 17,200 27,500 9,500 25,000 13,000 28,500 5,500 Spokane Valley Soccer Club 0 0 0 0 0 0 0 0 0 0 Spokane Winery Association 0 0 0 0 D 0 0 0 0 0 Sports USA Sports Complex 0 0 0 0 0 0 0 0 0 0 SV Junior Soccer Association 0 0 0 0 0 0 0 0 0 D U.S.Figure Skating 0 0 0 0 0 0 0 0 0 0 Valleyfest 64,000 31,600 60,000 28,900 150,000 31,60D 150,000 18,600 150,000 12,000 Valleyfest-CycleCelebration 0 0 10,000 3,000 25,000 5,000 25,000 2,000 25,000 1,000 Valleyfest(additional for Spring 07(for float) 0 0 0 0 0 0 0 0 0 0 Visit Spokane(Spokane Vicitor Convention Bureau) 328,430 230,000 253,777 163,650 282,830 103,130 282,830 70,000 200,000 48,000 WebMaker 0 0 0 0 0 0 0 0 0 0 YMCA 0 0 0 0 0 0 0 0 0 0 YMCA Skateboard Park 0 0 0 0 0 0 0 0 0 0 Transfer out to Fund#104 0 0 0 0 0 250,000 0 250,000 0 275,000 Total 855,639 800,000 946,327 590,000 1,073,838 634,000 1,104,830 602.000 888.600 547,000 Page 4 of 5 P:\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Lodging Tax Award History 03-21 CITY OF SPOKANE VALLEY,WA 7/8/2021 Lodging Tax Application l Award History For the years 2003 through 2021 • 2020 2021 Total AGENCIES Application I Award Application I Award Application I` Award Armed Forces&Aerospace Museum 0 0 0 0 5,858 0 Burke Marketing 0 0 0 0 147,500 0 CenterPlace-marketing 0 30,000 0 3D,000 90,000 637,500 CenterPlace-marketing to regional meeting planners 0 0 0 0 30,000 17,000 Chamber of Commerce 0 0 0 0 285,880 105,000 City of Spokane Valley-Directed Marketing 0 0 0 0 0 55,000 City of Spokane Valley-Tourism Study 0 0 0 0 86,750 80,000 City of Spokane Valley-Volleyball courts 0 0 D 0 751,508 128,650 Evergreen Regional Volleyball Court Expansion 0 0 D 0 7,500 7,300 Fair&Expo Marketing 0 0 0 0 194,376 128,750 Fairgrounds 0 0 0 0 21,000 15,000 Family Guide 0 0 0 0 35,000 0 Friends of Centennial Trail 0 0 0 0 41,080 2,000 Historic Flight Foundation 0 0 15,000 15,000 15,000 15,000 HUB Sports Center 55,100 55,020 45,000 45,000 509,200 460,120 Inland Dance Association 0 0 0 0 5,070 0 Inland NW Sr.Wellness Conference 0 0 0 0 12,500 0 JAKT-Brews,Beats,&Eats 0 0 20,000 2,600 20,000 2,600 JAKT-Crave NW 38,000 18,500 25,000 15,200 173,000 85,300 JAKT-Farmers Market 18,00D 3,000 20,000 7,200 53,000 22,200 JAKT-Oktoberfest 20,000 8,400 0 0 60,000 23,400 Latch Creek Wine Cellars 0 0 0 0 20,000 0 Liberty Lake Rotary Club 0 0 0 0 10,000 0 Northwest Winterfest 50,000 48,000 50,000 49,000 100,000 97,000 Plantes Ferry Park 0 0 0 0 125,71E 20,000 Six Bridges Arts Association 0 0 0 0 15,000 12,500 Splash-Down Family Waterpark 0 0 0 0 230,000 0 Spo Con 0 0 0 0 70,131 0 Spokane Arts Commission 0 0 0 0 65,000 C Spokane County Fair&Expo Center 75,000 66,000 50,000 490)00 559,000 449,500 Spokane County Fair&Expo Center-Winter Glow Spe 0 0 0 0 20,000 2,170 Spokane County Parks,Recreation,&Golf 0 0 0 0 75,000 35,000 Spokane Horse Breeders of Inland NW 0 0 0 0 5,830 0 Spokane Polo Club 0 0 0 0 30,100 0 Spokane Rcgiorsol Sports Commission 50,000 45,000 55,000 0 2,955,000 1,957,400 Spokane River Forum 0 0 0 0 1,000 1,000 Spokane Symphony 0 0 0 0 40,000 0 Spokane Valley Heritage Museum 0 0 0 0 372,523 127,350 Spokane Valley Soccer Club 0 0 0 0 25,000 0 Spokane Winery Association 0 0 0 0 36,335 17,800 Sports USA Sports Complex 0 0 0 0 103,000 0 SV Junior Soccer Association 0 0 0 0 189,484 59,100 U.S.Figure Skating 0 0 0 0 0 30,000 Valleyfest 150,00D 18,600 18,000 12,600 1,289,524 425,400 Valleyfest-Cycle Celebration 25,000 1,380 5,000 1,800 115,000 14,180 Valleyfest(additional for Spring 07(for float) 0 0 0 0 6,000 0 Visit Spokane(Spokonc Visitor Convention Bureaa) 50,000 50,000 0 0 4,591,867 3,123,000 WebMaker 0 C 0 0 39,000 0 YMCA 0 0 0 0 91,000 37,000 YMCA Skateboard Park 0 0 0 0 0 18,000 Transfer out to Fund#104 0 450,000 0 480,840 0 1,705,840 Total 531,100 799,000 303,000 708,240 13,724,734 9,917.060 Page 5 of 5 Binder LODGING TAX ADVISORY COMMITTEE MEETING October 13, 2021 8:00 a.m. Agenda Meeting Called to Order at 8:00am - Mandatory training on the Open Public Meetings Act by Deputy City Attorney — Erik Lamb Opening Comments at 8:30 - City Councilmember and LTAC Chair— Mayor Ben Wick - Finance Director - Chelsie Taylor Applicant Presentations (should be no greater than 10 minutes + additional time for Q & Al 1. 8:45 a.m. HUB Sports Center 2. 9:00 a.m. JAKT - Brews, Beats, & Eats 3. 9:05 a.m. JAKT—Craft Beer Event 4. 9:10 a.m. JAKT- Crave! 5. 9:15 a.m. JAKT - Farmer's Market 6. 9:30 a.m. JAKT— Spokane Valley Events 7. 9:45 a.m. Northwest Winterfest 8. 10:00 a.m. Spokane County Fair and Expo Center 9. 10:15 a.m. Spokane Valley Heritage Museum 10. 10:30 a.m. Spokane Valley Summer Theatre 11. 10:45 a.m.Valleyfest 12. 10:30 a,m.Valleyfest— Cycle Celebration 13. 10:45 a.m.City of Spokane Valley — Capital Construction Lodging Tax Advisory Committee members develop funding recommendations Development of recommendations will immediately follow applicant presentations. Recommendations may be "tallied" on the enclosed sheet titled "2022 Lodging Tax Funding Requests and LTAC Award Recommendations." These will then be communicated to Chelsie Taylor who will enter the information on a spreadsheet that will be projected on screen. Lodging Tax Advisory Committee member discussion and award recommendation Members will discuss individual award recommendations. Final product will be a formal LTAC motion that states specifically how much money should be awarded to each applicant. Adjournment 01.11.°1\11111MINa Sc1To1 ane FINANCE DEPARTMENT Chelsie Taylor,CPA, Finance Director 1 k 10210 E Sprague Avenue ♦ Spokane Valley WA 99206 Phone: (509)720-5000 ♦ Fax: (509)720-5075 ♦ www.spokanevalley.org Memorandum To: Lodging Tax Advisory Committee From: Chelsie Taylor, Finance Director Date: Friday October 8, 2021 Re: Information regarding Lodging Tax To help you prepare for the October 13, 2021, meeting where you will consider requests that will be financed with 2022 lodging tax receipts, I'm including information that you may find helpful in understanding how much lodging tax we anticipate the City will receive from the 2% portion and 1.3% portion of the lodging tax and allowable uses for each portion. Staff anticipates that the 2022 award process will consist of two actions as the City has received applications for both the 2% (as has been done historically) and the 1.3% taxes for 2022. Prior to the beginning of presentations by those agencies requesting funds I will briefly discuss the enclosed documents and do my best to answer any questions you may have. Please review the following as you consider the 2022 grant awards: 1. Lodging Tax Authority and Use restrictions Washington law allows the City to impose lodging taxes and to use the revenues for the following purposes: • Tourism marketing. • The marketing and operations of special events and festivals. • The operations and capital expenditures of tourism-related facilities owned or operated by a municipality or public facility district. • The operations (but not capital expenditures) of tourism-related facilities owned or operated by non-profit organizations. Pursuant to SVMC 3.20.010, the City has imposed and levied a total tax of 3.3 percent on the furnishing of lodging that occurs with Spokane Valley. The total tax is made of two portions and each portion may be used for different purposes. "2% Portion": The amounts from the first 2% are referred to as the "2% Portion" and may be used for any and all of the four purposes allowed by State law (identified above). All financial activity for the 2% portion is recorded in City's Hotel/Motel Tax Fund #105. Historically, all awards have come from the 2% portion. 12 of the 13 requests are for use of the revenues from the 2% portion. "1.3% Portion": The amounts in Fund #104 from the additional 1.3% are referred to as the "1.3% Portion" and have specifically been limited by City Council to be used "solely for capital P:1Finance12022 Budget\Budget Worksheets\Lodging Tax12021 10 13 LTAC Meeting12021 10 08 memo to lodg tax committee FINAL.docx Page 1 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...." See SVMC 3.20.020(B). All financial activity for the 1.3% portion is recorded in City's Hotel/Motel Tax—Tourism Facilities Fund #104. The request from the City is to use revenues from the 1.3% portion. 2. Lodging tax advisory committee process Washington law also establishes application and reporting procedures for cities with a population of greater than 5,000. Applicants must submit their applications to the Lodging Tax Advisory Committee (LTAC) including in that application estimates of how money awarded to them will result in increases in the number of people traveling for business or pleasure on a trip in the following categories: • Away from their place of residence or business and staying overnight in paid accommodations; • To a place 50 miles or more one way from their place of residence or business for the day or staying overnight; or • From another country or state outside their place of residence or their business. Through 2012, the City Council could, at its option, supersede the recommendation of the LTAC and award lodging tax funds to applicants in the amount the Council collectively determined was appropriate based upon their own goals and priorities for promoting conventions, festivals, special events, and tourist travel, regardless of the LTAC recommendation. However, legislative amendments in 2013 (which remain in effect today) altered this authority and the options for City Council action have been viewed as primarily being limited to either (1) approving some or all of the listed recipients and amounts recommended by the LTAC or (2) not approving any recipients and having the LTAC revise its recommendation for further City Council action. However, under RCW 67.28.1817, a municipality may propose "a change in the use of revenue received under[RCW 67.28]," but must submit the proposal to the LTAC for review and comment. Then, the LTAC must be given at least 45 days to review and provide comments prior to final action by the municipality. This allows the City Council to conduct its own review of the materials submitted, including the minutes and recommended amounts by the LTAC, to come up with its own proposed distribution of the revenue for any of the applicants, which may be the same or different from the LTAC recommendation. If it is different, the City must give the LTAC 45 days to review and provide comments on the proposed revised distribution before taking final action. The Council used this process in 2017 for the 2018 awards to ensure transparency and the public confidence due to questions from the public that arose during the LTAC review and recommendation process. This process was again used for a change to the 2020 award allocations due to shortfalls in revenue caused by the COVID-19 pandemic's effects on the economy. Reporting Requirements Recipients must provide a report to the City describing the actual number of people traveling for business or pleasure on a trip: • Away from their place of residence or business and staying overnight in paid accommodations; • To a place 50 miles or more one way from their place of residence or business for the day or staying overnight; or • From another country or state outside their place of residence or their business. P:1Finance12022 Budget\Budget Worksheets\Lodging Tax12021 10 13 LTAC Meeting12021 10 08 memo to lodg tax committee FINAL.docx Page 2 The report must be made available to the City Council and the public and must be furnished to the Joint Legislative Audit and Review Committee (JLARC) and the Lodging Tax Advisory Committee. The JLARC will provide biennial reports to the Washington State Legislature. The City will contact 2022 grant award recipients in approximately January 2023 with specific instructions as to how and when they must have reports turned in to us so we may in turn furnish them to JLARC. 3. Spokane Valley City Council Goals and Priorities for Use of Lodging Tax Revenues In August 2013 Council for the first time adopted goals and priorities that it encouraged the LTAC to consider when making award recommendations. Based upon subsequent discussions between Council and Staff in the years of 2014 through 2021, these have evolved as follows: 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing b. The marketing and operations of special events and festivals c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City (recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. Council has also opted to again set aside $30,000 of 2022 lodging tax proceeds to partially offset advertising costs for CenterPlace. This is allowed by RCW 67.28 because it reflects a continued historical use of lodging tax as opposed to a change in use. What this means to the Committee and applicants is that of the $601,000 we anticipate will be available for distribution in 2022 from the 2% tax, $30,000 will be applied to City directed activities and the remaining $571,000 will be available for in this grant award process. For the 1.3% tax, the fund balance available as of December 31, 2020, is $2,986,573. 4. Revenue Impacts of the COVID-19 Pandemic The COVID-19 pandemic and related economic shutdowns and limitations over 2020 and 2021 have had a significant impact on the hospitality industry, including a negative effect on hotel/motel stays. Lodging tax revenues in the City saw the most impact from the COVID-19 pandemic during 2020 and early 2021. Revenue collections later in 2021 appear to be P:1Finance12022 Budget\Budget Worksheets\Lodging Tax12021 10 13 LTAC Meeting12021 10 08 memo to lodg tax committee FINAL.docx Page 3 recovering and are near pre-pandemic levels. Staff will continue to watch these revenue collections for trends and potential impacts. Enclosed are a number of documents including: • A single page with a chart that reflects a history of hotel/motel tax receipts from January 2012 through August 2021. • A one-page financial analysis of the 2% portion of the City's Hotel/Motel Tax Fund #105 with information related to actual activity for the four-year period 2017 through 2020 and budgets for 2021 and 2022. I'd like to point out two items here: 1. The 2021 revenues are tracking to end the year at approximately $706,000, which is $360,000 more than the $346,000 included in the original adopted budget. The revenues in the 2021 Budget are being amended upward to reflect the new estimates. 2. We currently anticipate we will enter 2022 with a fund balance of approximately $165,000 and exit 2022 with approximately $165,000. We generally shoot for an ending fund balance of about 25% of estimated revenues, which is $150,000 in 2022 ($600,000 x 25%0 = $150,000). However, due to the uncertainty in revenue collections right now, we are leaving a higher dollar amount in fund balance. We leave this amount as fund balance for cash flow purposes in recognition of the fact that it takes approximately 2-months from the time the tax is collected at the hotel until when the State remits is to the City. • i.e. tax is collected through the month of July, remitted by hoteliers to the State Department of Revenue by the end of August and remitted to the City by the end of September. • If we ran the fund balance to $0, we would be unable to make timely payments of reimbursement requests to award recipients. • A one-page financial analysis of the 1.3% portion of the City's Hotel/Motel Tax—Tourism Facilities Fund #104 with information related to actual activity for the four-year period 2017 through 2020 and budgets for 2021 and 2022. Some highlights from this analysis are as follows: 1. The 2021 revenues are tracking to end the year at approximately $459,000, which is $246,000 more than the $213,000 included in the original adopted budget. The revenues in the 2021 Budget are being amended upward to reflect the new estimates. 2. We currently anticipate we will enter 2022 with a fund balance of approximately $4,546,033 and exit 2022 with approximately $4,948,533. This includes accumulated revenues from the 1.3% lodging tax as well as past and 2021 anticipated transfers from Fund #105. • A calendar of the 2021 application and award process leading to 2022 awards. • Minutes from the October 15, 2020 Lodging Tax Advisory Committee meetings where recommended 2021 Awards were established. • Tentative calendar of the 2022 application and award process leading to 2023 grants. • A sheet titled "2022 Lodging Tax Funding Requests and LTAC Award Recommendations" that provides a summary of 2022 applicant requests and intended uses as well as the award amount granted in 2021 (if applicable). This sheet will be used by Committee members to keep track of their individual grant award recommendations. Award recommendations from each Committee member will be projected onto screens in the City Council Chambers during our meeting. P:\Finance12022 Budget\Budget Worksheets\Lodging Tax12021 10 13 LTAC Meeting12021 10 08 memo to Iodg tax committee FINAL.docx Page 4 P:IFinancelFinance Activity Reports\Tax RevenuelLodging Tax12021I105 hotel motel tax 2021 CITY OF SPOKANE VALLEY,WA 10/1/2021 Hotel/Motel Tax Receipts through- August ' Actual for the years 2012 through 2021 .� ' r 2020 to 2021 Difference 2012 2013 2014 2015 2016 2017 2016 2019 2020 2021 $ %° January 21,442 24,185 25,425 27,092 31,887 27,210 28,752 31,865 36,203 26,006 (10,197) (28.17%) February 21,549 25,975 26,014 27,111 27,773 26,795 28,878 32,821 31,035 31,041 6 0.02% March 25,655 27,739 29,384 32,998 34,330 31,601 31,906 40,076 37,395 30,536 (6,859) (18.34%) April 52,130 40,979 48,246 50,455 52,551 52,242 57,664 59,117 24,959 44,476 19,517 78.20% May 37,478 40,560 41,123 44,283 50,230 50,112 51,777 53,596 16,906 49,002 32,096 189.85% June 43,971 47,850 52,618 56,975 55,060 60,637 62,048 73,721 28,910 66,262 37,352 129.20% July 52,819 56,157 61,514 61,809 65,007 69,337 71,865 84,628 41,836 94,495 52,659 125.87% August 57,229 63,816 70,384 72,697 73,700 76,972 79,368 91,637 49,772 101,171 51,399 103.27% Total Collections 312,273 327,262 354,707 373,420 390,538 394,906 412,258 467,461 267,016 442,989 175,973 65.90% September 64,299 70,794 76,100 74,051 70,305 80,173 79,661 97,531 59,116 0 October 43,699 43,836 45,604 49,880 55,660 56,631 61,826 77,932 50,844 0 November 39,301 42,542 39,600 42,376 46,393 47,090 52,868 59,252 39,894 0 December 30,432 34,238 33,256 41,510 33,478 37,180 40,363 41,675 26,573 0 Total Collections 490,004 518,672 549,267 581,237 596,374 615,980 646,976 743,851 443,243 442,989 Budget Estimate 430,000 490,000 530,000 550,000 580,000 580,000 580,000 600,000 346,000 346,000 Actual over(under)budg 60,004 28,672 19,267 31,237 16,374 35,980 66,976 143,851 97,243 96,989 Total actual collections as a%of total budget 113.95% 105.85% 103.64% 105.66% 102.82% 106.20% 111.55% 123.98% 128.10% n/a %change in annual total collected 7.08% 5.85% 5.90% 5.82% 2.60% 3.29% 5.03% 14.97% (40.41%) n/a %of budget collected through August 72.62% 66.79% 66.93% 67.89% 67.33% 68.09% 71.08% 77.91% 77.17% 128.03% %of actual total collected through August 63.73% 63.10% 64.58% 64,25% 65.49% 64.11% 63.72% 62.84% 60.24% n/a Chart Reflecting History of Collections through the Month of August August 500,000 450,000 400,000 August 350,000 - - July 300,000 'June 250,000 ■Apra may 200,000 t pri I 150,000 MI aMarch 100,000 ■February 50,000 _.- _. - ■January 0 - , , , , 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 P:\Finance\2022 Budget\Budget Worksheets\105 Rev and exp CITY OF SPOKANE VALLEY,WA 10/7/2021 2021 Budget Amendment and 2022 Budget Fund#105-Hotel!Motel Tax Fund - Actuals for 2017 through 2020 - 2021 and 2022 Budgets 2021 Actual As 2022 2017 I 2018 I 2019 I 2020 Adopted Annualized Budget Revenues Hotel/Motel Tax 615,980 646,975 743,852 443,243 346,000 750,000 600,000 Investment Interest 3,549 7,058 8,459 2,705 6,000 718 1,000 Subtotal revenues 619,529 654,033 752,311 445,948 352,000 750,718 601,000 Expenditures Transfers out-#001 CenterPlace 15,778 26,037 30,000 11,390 30,000 30,000 30,000 Transfers out-#104 250,000 250,000 275,000 0 453,840 1,157,000 0 Tourism Promotion 351,674 321,934 207,000 154,082 224,400 - 197,400 571,000 Subtotal expenditures 617,452 597,971 512,000 165,472 708,240 1,384,400 - 601,000 Revenues over(under) expenditures 2,077 56,062 240,311 280,476 (356,240) (633,682) 0 Beginning fund balance 219,790 -- 221,867 _ 277,929 _ 518,240 798,716 =- 798,716 165,033 Ending fund balance 221,867 277,929 518,240 798,716.- 442,476 165,033,-- 165,033 2021 Awards by Agency Historic Flight Foundation 15,000 HUB Sports Center 45,000 JAKT-Brews, Beats& Eats 2,600 JAKT-Crave NW 15,200 JAKT-Farmers Market 7,200 Northwest Winterfest 49,000 Spokane County Fair&Expo-marketing 49,000 Valleyfest-Cycle Celebration 1,800 Valleyfest-marketing 12,600 -- 197,400 for LTAC P:\Finance\2022 Budget\Budget Worksheets\104 CITY OF SPOKANE VALLEY,WA 10/8/2021 2021 Budget Amendment and 2022 Budget Fund#104-Hotel/Motel Tax-Tourism Facilities Fund - Actuals for 2017 through 2020 - 2021 and 2022 Budgets 2021 Actual As 2022 2017 2018 2019 2020 Adopted Annualized Budget Revenues Hotel/Motel Tax 400,509 415,295 454,283 283,721 213,000 400,000 400,000 Investment Interest 6,854 24,182 43,589 11,908 24,000 2,460 2,500 Transfers in-#105 250,000 250,000 275,000 0 453,840 1,157,000 0 Total revenues 657,363 689,477 772,872 295,629 690,840 1,559,460 402,500 Expenditures Tourism Facilities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Revenues over(under) expenditures 657,363 689,477 772,872 295,629 690,840 1,559,460 402,500 Beginning fund balance 571,232 1,228,595 1,918,072 2,690,944 7 2,986,573_%' 2,986,573 7 4,546,033 Ending fund balance 1,228,595 1,918,072 2,690,944 2,986,573 3,677,413 4,546,033 4,948,533 for LTAC \\svfsl\Public Folders\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Calendar for LTAC 2022 CITY OF SPOKANE VALLEY,WA 2/8/2021 LODGING TAX-2021 Process Leading to 2022 Awards 6/8/2021 2021 2020 2019 10/7/2021 Budget Budget Budget Tues 7/20/2021 Admin Report- Review Council goals and priorities for use of 7/14/2020 7/16/2019 7/17/2018 lodging tax proceeds. Tues 8/10/2021 Motion seeking Council approval of goals and priorities for the use of 7/28/2020 7/30/2019 7/31/2018 lodging tax proceeds. Wed 8/27/2021 City runs notice in newspaper, places on web site, and sends letters to 8/28/2020 8/30/2019 8/31/2018 2020 award recipients and others agencies that may have expressed interest. Fri 10/1/2021 Grant proposals are due to City by 4pm (no late submittals will be 10/2/2020 10/4/2019 10/5/2018 accepted). Fri 10/8/2021 Applications sent to Lodging Tax Advisory Committee for review. 10/9/2020 10/11/2019 10/12/2018 Thurs 10/13/2021 * 8:30 am Applicant presentations to Committee. 10/15/2020 10/17/2019 10/18/2018 Tues 11/9/2021 Formal Council Meeting 11/24/2020 11/12/2019 11/13/2018 Admin Report: LTAC Recommendations to City Council Tues 12/14/2021 * Formal Council Meeting 12/8✓2020 12/10/2019 12/11/2018 City Council Motion Consideration: Award Lodging Tax for 2022 RCW 67.28.1817 requires that the City wait for a period of at least 45 days after the LTAC meeting before action can be taken by the City Council. * 12/14/2021 Council Action * 10/13/2021 LTAC meeting 62 days 202110 07 MINUTES LODGING TAX ADVISORY COMMITTEE MEETING October 15,2020 8:00 a.m. Spokane Valley City Hall Council Chambers 10210 East Sprague Avenue Meeting Held via Zoom Attendance: Lodging Tax Advisory Committee Menrber s: Staff: Chair:Mayor Ben Wick Chelsie Taylor, Finance Director Lee Cameron, Mirabeau Park Hotel Sarah Farr, Financial Specialist Colleen Heinsebnan, Hampton Inn Suites Erik Lamb,Deputy City Attorney Wayne Brokaw, Spokane County Fair Board Christine Bainbridge, City Clerk Gregory Repetti, The HUB Chair Mayor Wick called the meeting to order at 8:00 a.m.and welcomed everyone,after which there were self-introductions. Deputy City Attorney Lamb went through his Open Public Government PowerPoint training for Committee members and he explained various portions of the Public Records Act,and the Open Public Meetings Act. Mayor Wick made some opening comments about tax trends and what the COVID pandemic is doing to the tourism/lodging industry. He also mentioned the TPA's (aka Hotel/Motel Association) request to the state legislature to change the room tax rates from its current$2.00 a night to $5.00 a night and that there was a request from the Sports Commission to have the change at$4.00 a night rather than the $5.00; he said nothing has been finalized. He also mentioned the Council's goals for the Lodging Tax Advisory Committee(LTAC)and said the goals have not changed from the previous year. Finance Director Taylor went through the information contained in the Memorandum included with the packet materials, about projected revenues and transfer of funds to Fund 104; followed by Deputy City Attorney Lamb explaining the use of funds and any proposed changes as per RCW 78.28.1817; he noted that for this LTAC meeting, committee members should think about how to award for 2021, keeping in mind impact on 2020 and where the ending cash fund might be as well as uncertainty for cash collections for 2020 and 2021. Mr. Lamb stated that comments Committee members might want to pass to Council regarding funding include award recommendations for 2021, as well as any other motions or comments, and that Council will take final action on 2020 through a 2020 budget amendment in December. Mr.Lamb also noted that regarding the applications, some were for marketing and some for actual operations, and due to Covid restrictions,some were not able to proceed as planned;he also reminded committee members the LTAC funds are awarded on a reimbursement basis;so if some applicants used the funds for marketing, those can be reimbursed,but we will not pay for events that did not occur. Finance Director Taylor said she has been in contact with all awardees to let them know that the exact amount the City will be paying is uncertain. Director Taylor also went over the contents of the meeting binder,and mentioned which events took place and which didn't, and that even though some events didn't take place, some could still have partial spending, such as Crave NW which didn't occur but did have marketing expenses; she also mentioned that the NW Winterfest event for this year is still uncertain; she noted the$30,000 set aside for CenterPlace, which is allowed by state statute as it constitutes historic use of the tax. Director Taylor mentioned the $710,000 anticipated amounts for 2021, minus the $30,000 to CenterPlace which leaves $680,000 for award allocations. LTAC Minutes October 15,2020 Page 1 of 3 Presentations were made in the following order: 1. Historic Flight Foundation—Mr. John Sessions Chair of the Board John Sessions noted they seek$15,000 for marketing their Vintage Aircraft Weekend, which will be a community and family event to celebrate vintage aircraft and history. 2. The HUB—Mr. Phil Champlin Mr. Champlin explained that the HUB seeks$45,000 for recruiting events to the facility. 3. JAKT Brews, Beats&Eats—Mr.Tom Stebbins and Executive Director Ms. Katie Lee Mr. Stebbins seeks $20,000 for the Brews, Beats & Arts community event, which is an event for all ages celebrating local beer, food and music; and the funds will be used to assist in conducting the event as well as with infrastructure costs. 4. JAKT Crave—Mr. Tom Stebbins Mr. Stebbins seeks $25,000 for the Crave event, which will include cost for a social media team that includes photography and video assets and PR outreach. 5. JAKT Farmers Market—Mr.Tom Stebbins Mr. Stebbins seeks $20,000 to continue the Farmers Market at CenterPlace; that the requested amount is for the market manager position, a position to maintain organized vendors to bring vendors and the public to the community and the event and to boost attendance. 6.Northwest Winterfest P-Mr. Sam Song and Ms. Charity Doyl The applicants seek$50,000 to assist with this event to include operation and marketing. 7. Spokane County Fair and Expo center—Ms, Erin Gurtel and Ms. Rachelle Buchanan The applicants seek $50,000 to market and advertise the Fair and interim events to an audience in and beyond the Spokane area. 9. Valleyfest—Ms. Peggy Doering Ms. Doering seeks $18,000 for marketing Valleyfest in and beyond the Spokane region. 10.Valleyfest Cycle Celebration—Ms.Peggy Doering Ms. Doering seeks $5,000 for marketing the City of Spokane Valley as a destination to cyclists and their families. 8. Spokane Sports Commission- Ms. Ashley Blake The Sports Commission seeks$55,000 to support tourism events in 2021.There was some discussion about the Sports Commission's request and that they also requested$50,000 from the City of Spokane Lodging Tax.Ms. Blake explained that the City of Spokane has had a bit of a delay in their process and she is hopeful to secure a little more from them. Chair Mayor Wick called for a five-minute recess at 11:04 a.m.; he reconvened the meeting at 11:09 a.m. Lodging Tax Advisory Committee members develop funding recommendations Ms. Taylor distributed a blank spreadsheet to each committee member; went over the actuals for 2016 through 2019 and 2020 as well as the 2021 budget figures;and mentioned the$163,000 minimum for cash flow purposes. There as brief discussion about the minimum cash flow amount and Director Taylor LTAC Minutes October 15,2020 Page 2 of 3 explained she is hesitant to reduce that figure. There was also discussion about the budget and presumed revenues,and the amount of the cash reserve. There was a great deal of discussion about the overall budget for the lodging tax fund and fund 104 with discussion focused on whether to make any transfer of funds into fund 104,Chair Mayor Wick recommended that there be no transfers in 2020 to fund 104.Deputy City Attorney Lamb said a motion wasn't necessary, as the chair identified the recommendation, or a motion could be made based on the desire of the committee. There was ultimately consensus from the committee that LTAC would cancel any transfers from fund 105 to fund 104 in the year 2020. LodEini Tax advisory Committee members discussion and award recommendations. Director Taylor then asked each committee member to complete the allocation sheet and that she and Ms. Fan would be by in a few minutes to collect the sheets with each Committee member's recommended allocation,after which Ms.Taylor would enter the figures on the spreadsheet.Mr.Lamb reminded everyone that the meeting is still in session. Ms. Taylor entered the figures on the master spreadsheet,which figures where then slightly modified by several of the committee members. The final recommended amounts after calculating the averages, are as follows: Historic Flight Foundation $15,000; HUB Sports Center $45,000; JAKT Brews, Beats & Eats $2,600; JAKT Crave $15,200; JAKT Farmers Market$7,200;NW Winterfest$49,000;Spokane County Fair and Expo Center$49,000; Spokane Sports Commission $27,000; Valleyfest $12,600; and Valleyfest Cycle Celebration $1,800 for a total of $224,400.It was moved by Lee Cameron,seconded, and unanimously agreed to accept the average amounts in the total amount of$224,400. Ms. Taylor said she would email a final distribution sheet to each committee member. Discussion resumed about the transfer of funds and the ending fund balance,which finally culminated in a motion by Mr. Repetti as follows: It was moved by Mr. Repetti and seconded that all remaining funds be transferred to fund 104 after complete adjudication of all awards and allowing a reserve And balance of $165,000 at the end of year 2021. Discussion included mention by Director Taylor that getting to exactly $165,000 would be difficult, and perhaps adding the word`approximately' would be better. It was moved by Mr. Cameron and seconded to amend the motion by changing the reserve find balance of$165,000, to 'approximately' $165,000. Vote by acclamation on the amended motion was unanimous in favor. Committee members then voted by acclamation on the fully amended motion with all members voting unanimously in favor. Director Taylor said an administrative report is scheduled to come before Council November 24,with final action scheduled for the December 8 Council meeting. It was moved by Mr.Repetti,seconded and unanimously agreed to adjourn.The meeting adjourned at 12:46 a.m. Respectfully submitted, Christine Bainbridge, Spokane Valley City Clerk LTAC Minutes October 15,2020 Page 3 of 3 \\svfsl\Public Folders\Finance\2022 Budget\Budget Worksheets\Lodging Tax\Calendar for LTAC 2022 CITY OF SPOKANE VALLEY,WA + 110/8/2021 I LODGING TAX-2022 Process Leading to 2023 Awards Wed 8/26/2022 City runs notice in newspaper, places on web site, and sends letters to 2022 award recipients and others agencies that may have expressed (--- interest. L Fri 9/30/2022 Grant proposals are due to City by 4pm (no late submittals will be accepted). Fri 10/7/2022 Applications sent to Lodging Tax Advisory Committee for review. Thurs 10/13/2022 " 8:30 am Applicant presentations to Committee. Tues 11/8/2022 Formal Council Meeting Admin Report: LTAC Recommendations to City Council Tues 12/13/2022 Formal Council Meeting Lam'O City Council Motion Consideration: Award Lodging Tax for 20231:74 RCW 67.28.1817 requires that the City wait for a period of at least 45 days after the LTAC meeting before action can be taken by the City Council. 12/13/2022 Council Action 10/13/2022 LTAC meeting 61 days 2021 10 08 CITY OF SPOKANL .,LLEY,WA 2022 Lodging Tax Funding Requests and LTAC Award Recommendations Amount Amount Awarded Requested Recommended 2022 Agency in 2021 for 2022 Awards-LTAC Summary of the Intended Use of Funds if Awarded Applicants for 2%Tax: HUB Sports Center $ 45,000 $ 55,000 Funds would be used towards recruiting events to the facility,marketing of these events,and operations. We are optimistic for a continuing return to travel events and tournaments for 2022. We saw a willingness for teams to travel in the spring and summer 2021 and are optimistic this wit continue into 2022. In 2021 we hosted 14 events which generate overnight stays. For 2022,we are hopeful to return to 35+events. We averaged 42 prior to COVID. JAKT-Brews,Beats&Eats S 2,600 $ 15000 A one day,all ages,music,food truck,and local craft brewery event(including non-alcoholic products like root beer)on June 4th,Saturday.Support will assist in marketing and event costs to reduce risk of JAKT in producing a new community event. Utilizing CenterPlace west lawn with tent and limited seating to encourage families to enjoy the new space. Lawn games will be available;all ages can move freely within the fenced west lawn area. JAKT-Craft Beer Event Did not apply $ 15,000 A one day,21+age local craft beer event with music will feature the best of the region's craft beer,seltzers,and ciders on Aug 13th,Saturday.Support will assist in marketing and event costs to reduce risk of JAKT in producing a new community event. Utilizing CenterPlace west lawn with tent and limited seating to encourage families to enjoy the new space. Lawn games will be available;all can move freely within the fenced west lawn area. JAKT-Crave! $ 15,200 $ 50.000 Provide a high-end,multi-day,ticketed event to highlight the culinary scene in Spokane and reinforce to Chefs throughout the country that Spokane Valley is a great destination to do business. Support will assist in infrastructure costs of conducting the event and a social media team effort that includes photography and video assets and PR outreach, JAKT-Farmer's Market $ 7,200 $ 25,000 Maintain the Spokane Valley Farmers Market(Fridays)with financial stability while partnering with the greater Spokane Valley Chamber of Commerce with a Sprague Avenue Farmers Market(Mondays/Tuesdays)as we continue our work in creating a community asset for Spokane Valley. JAKT-Spokane Valley Events Did not apply $ 400,000 JAKT in partnership with Valleyfest will form a"shark tank"for review and partnership within their structures with sharks being;JAKT(1),Valleyfest(1), Lodging(1),and regional sponsors(5 is goal)who bring$20,000 or more to the table to support to be Identified events. New events from anyone with an Idea will be encouraged to apply for up to$500,000 of funding. Northwest Winterfest $ 49,000 $ 45,000 We are hosting the Spokane Valley event in 2021 at the Spokane Fair and Expo Center. Funding will help us continue this unique event combining arts,culture,lighted Chinese lanterns,holiday celebrations,food and crafts over the holiday. The funding we request will be used to help all aspects of the events,including but not limited to capital purchases,event operations,marketing,and promotions. Spokane Co Fair and Expo Center $ 49,000 $ 75,000 Funding will be used to market and advertise the Spokane County Interstate Fair and Interim Events to an audience in the Spokane area and beyond. Will continue to enhance the Fair overall as we strive to add new activities,exciting Grandstand entertainment,educational displays,and free entertainment throughout the grounds. We were able to host the 2021 Spokane County Interstate Fair. Spokane Valley Heritage Museum Did not apply $ 40A00 Funds will support the 2022 Smithsonian Exhibit"The Way We Worked"to be installed in late May 2022 and run through the summer of 2022. Also to be used for 2022 rack cards to advertise to tourists at visitor centers,hotels,motels,restaurants,and other tourist related attractions. The SVHM current rack card is out of date and the supply is almost gone. Spokane Valley Summer Theatre Did not apply $ 20,000 SVST seeks$20,000 to increase our TV advertising budget to draw more visitors and tourists to the City of Spokane Valley, We currently have $10,000 budgeted for TV(with an overall$40,000 marketing budget). This would more than double our efforts to bring patrons to the City of Spokane Valley,and make a significant impact on tourism and hospitality. Valleyfest $ 12,600 $ 30,000 Valleyfest brings visitors to Spokane Valley and brings the community together to celebrate the assets of Spokane Valley. Funding will help market and advertise to the Inland Northwest Region which includes North Idaho,Western Montana,and Eastern Washington-through TV,radio,social media,print,and email campaigns. Valleyfest Cycle Celebration $ 1,800 $ 5,000 Funding will be used to market the event to a regional audience. Advertising with statewide publication and online sites for Washington State cyclists, in addition to rack card distribution statewide along the 1-90 corridor. With help of local bike shops,advertising will be distributed through bike trade shows and the bike swap. Totals: $ 182.400 $ 775,000 $ - Total amount available from 2%tax for allocation is I$ 571,000 Applicants for 1.3%Tax: City of Spokane Valley Did not apply $ 2,986,573 The City,in partnership with Spokane County,proposes to construct a new 32,300 square-foot building at the Expo Center. This new facility will provide a boast to the local economy and generate additional foot traffic to nearby businesses. It will provide new and exciting showpiece,and provide new conferencing space,a full service restaurant,administrative and ticket sales offices,and a stylish entry to welcome visitors. Total fund balance from 1.3%tax at December 31,2020,is f$ 2,986,573 f •Request for$2,986,573 fund balance at December 31,2020,plus all future revenues and transfers into Fund#104 until the project is fully funded. JI CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES INSTRUCTIONS: All sections must be answered in their entirety for this application to be considered complete. Additional pages that are attached to the application must be labeled with the section number and section title. I. PROJECT APPLICATION DEADLINE: October 1, 2021, before 4:00 p.m. Project Title: HUB Sports Center 2022 Events Type of Project: General Support for 2022 Tourism related Events Applicant: Spokane Valley HUB Phone: 509-927-0602 _ E-mail: phillC hubsportscenter,orq Address: 19619 E. Cataldo Ave, City: Liberty Lake State: WA Zip: 99016 Applicants are: Non-profit XX Public/Municipal Agency Must be a non-profit 501(c)(3) or 501(c)(6) or a public agency to be considered for funding. Contact Person (if different than applicant): Phil Champlin Phone: 509-927-0602 E-mail phil(a�hubsportscenter.org Address PO Box 604 City Greenacres State WA Zip 99016 Amount requested: $55,000 Applicant's match: $57,000 Total project budget: $604,000 Is this a new or continuing activity? continuing City of Spokane Valley Request for 2022 Grant IL HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The HUB Sports Center is a 501(c)3 non-profit organization designed to provide the community with an outstanding sports and multi purpose facility. Our mission is to join the communities offaith, sports, education, business and government to positively impact our youth and region through events and programs that enhance life skills. The HUB Sports Center has operated this facility since the latter part of 2007. The facility is 66K sq.f and includes 5 basketball courts, 3 dance studios, lobby/concessions area and office space. The court space is used for basketball, volleyball, soccer, and pickleball, among other things. The studios are used for aerobics,fitness training, dancing, martial arts and meeting rooms. The HUB Sports Center affords many groups the opportunity to host major events and tournaments in the Spokane Valley/Liberty Lake community. There is not another,facility in the area that has the flexible space and capacity. For 2021 the HUB Sports Center will generate around$3.5M in economic impact from events with out-of-town travelers (down from $7M in a normal year). There is additional revenue generated from local weekly and weekend events hosted by the HUB Sports Center throughout the year. Without the HUB Sports Center, these youth organizations would either reduce opportunities for kids to participate or attempt to move to locations farther away from Spokane Valley. This would result in a reduction of activities for our youth and/or a necessity to spend more time away from home traveling to games and practices. III. PROJECT SUMMARY Provide a concise summary of your request and what it will accomplish. If your request is part of a larger project, you may briefly describe the over-all project. However,please focus the bulk of your answer on the specific element for which you are requesting funding. The HUB Sports Center is requesting$55,000. These funds would be used towards recruiting events to the facility, marketing of these events, and operations. We are optimistic for a continuing return to travel events and tournaments for 2022. We saw a willingness for teams to travel in the spring and summer 2021 and are optimistic this will continue into 2022. These funds will assist us in keeping the HUB Sports Center available to host events that bring a significant economic impact to the community. Some of these major events are organized and promoted through other non-profit sports organizations. Other events are sponsored and promoted by the HUB Sports Center. For 2021 the HUB Sports Center hosted 3 first-time events which generated overnight stays at our local hotels. Our plan is to continue to develop, cultivate and grow new events to recurring annual events. A portion of these funds will be used toward media campaigns aimed at raising the awareness of the facility and attracting new users to bring their events and activities here. For 2021 we will have hosted 14 events which generate overnight stays. For 2022, we are hopeful to return to 35+ events. We have averaged 42 prior to COVID. Using the formula provided by the Spokane Regional Sports Commission, the HUB Sports Center 2021 events will generate around$3.5 million in economic impact from people traveling from outside the greater Spokane area. City of Spokane Valley Request for 2022 Grant IV. SCOPE OF WORK Fully describe the project. Expand on your Project Summary to address such issues as: a. What it is you wish to do? b. How and why the community will benefit? c. What are the beginning and ending dates of your project? d. Is it a seasonal activity appropriate to its location? e. If an outdoor activity, are there any weather related constraints? f. What measures you will apply to evaluate its success? If you are requesting funds for a specific portion of a larger project, please so state but focus your response on the element for which you are requesting grant assistance. You may use additional pages as necessary. Attachments to this section should be labeled "IV. Scope of Work." We will actively pursue organizations and groups to bring their events to our facility. Our strategy is to attract and retain organizations, primarily focused on youth, that will utilize this outstanding facility for their events. Most of these groups have existing recurring events, which are already successful, but need room to expand In addition, we program HUB sponsored events that complement our existing outside user group base and look to fill in gaps in our scheduling and meet activity demands. These funds would be utilized to market and promote the HUB sponsored events as well as to maintain a clean and professional facility. We have invested in the necessary COVID protocols and procedures to plan for our guests to have a safe return to play. We make a positive impression with our organizations and their event participants which encourages them to return year after year. The community benefits from both the "overnight" as well as the "daytrip" traveler to these events. The events provide the area on opportunity to showcase all this community has to offer to families from other areas of the city, state and country. The overnight traveler provides the largest economic impact, but the daytrip traveler will also spend money on retail, gas and food locally. This project is a yearlong commitment to continue to bring more people to the area through the events and activities we attract, retain and host. This is not a seasonal activity as we are conducting activities throughout the year. All of the activities will be indoors so we won't likely be affected by weather. Its success will be measured against our overall attendance from 2019 and growing by 2%. We will also measure the number of teams attending our HUB sponsored leagues and tournaments and growing that segment by 10%. (101 teams in 2019.) The HUB Sports Center has been operating since the fall of 2007. In the fall of 2009 we began pursuing events and activities year-round. We have successfully transitioned to a year-round facility and continue to attract new events and activities each month. We tracked approximately 100,000 people attending our events and activities for 2010 and are projecting 137,970 for 2021 and 171,405 for 2022. Attachment: Events Schedule 2022 City of Spokane Valley Request for 2022 Grant V. IMPACT ON TOURISM "Tourism," as defined in RCW 67.28.080(5), means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. A practical measure of tourism is the number of visitors that are attracted to the area. Provide an estimated or "projected" number of visitors who are expected to be attracted by the proposal in the following categories: Projected (expected to participate) Total Overall Attendance 171,405 Attendees who traveled 50 miles or more to attend Total 56,563 Of total, attendees who traveled from another state or country 25,623 Attendees who stayed overnight Paid Accommodations 19,797 Unpaid Accommodations 9,615 Paid Lodging Nights* 4,949 *one lodging night=one or more persons occupying one room for one night Provide a description of the methods used in making the above estimations as well as a description of the methods that will be used to determine actual attendance and distinguish among the visitor categories (methods include a head count, car count, survey, or other with explanation). Attachments to this section should be labeled "V. Impact on Tourism." Applicants may find more information on the Joint Legislative Audit and Review Committee's guidelines under"Data Collection- How to report lodging tax expenditures" at http://leg.wa.gov/jlarc/Pages/default.aspx. Information requested in this section is required to be included at the time the application is submitted per RCW 67.28, as amended by Engrossed Substitute House Bill 1253 in 2013. If estimates are not given for all items listed in this section, then the application will be considered incomplete and will not be advanced to the Lodging Tax Advisory Committee for funding consideration. HUB Sports Center works closely with our tournament/event directors as well as local hoteliers to gather information on participants and spectators in attendance. Using this information, we have estimated the counts for the above section. We will continue to utilize our partnerships to help track this information. Please note the attached document which accounts for some tracking of where teams are coming from by tournament. We are expecting a "normal"year for 2022 with regards to travel and events and activities happening at capacity. Attachment: 2022 Tracking Information City of Spokane Valley Request for 2022 Grant VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORTITIES THAT SHOULD BE ADDRESSED IN APPLICATION The Spokane Valley City Council will make the final award of lodging tax revenues to candidates based upon the recommendations of the LTAC. The City Council has established goals and priorities for using lodging tax revenues to benefit tourism within Spokane Valley. In addition to the evaluation criteria outlined in the other sections of this application, the SVLTAC desires to understand how the applicant's proposal and project would meet the City Council goals and priorities. Please explain how the proposal meets City Council goals and priorities, listed below. Attachments to this section should be labeled "VI. Consideration of City Council Goals and Priorities" Council Goals and Priorities for Use of the Initial 2% Lodging Tax In August 2013 Council for the first time adopted goals and priorities that it encouraged the LTAC to consider when making award recommendations. Based upon subsequent discussions between Council and Staff in the years of 2014 through 2020, these have evolved as follows: 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing b. The marketing and operations of special events and festivals c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City (recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays; however, Council will also take into consideration the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. 4. Council will take into consideration revenues derived from Iodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. We believe the HUB Sports Center meets the community and tourism objectives of the Spokane Valley City Council, HUB Sports Center would utilize the grants monies in three categories listed above; Tourism Marketing, marketing and operation of special events and festivals, and the operation of tourism related facilities owned or operated by non-profit organizations. We are expecting to grow our Pac-NW Basketball Championship in 2022 and have a couple other events in the pipeline. Our City of Spokane Valley Request for 2022 Grant economic impact for 2022 should be more in line with our historical averages of over $6Mand close to 5,000 room night stays. The additional impact to the Spokane Valley community from additional events which draw families from the greater Spokane and Coeur d'Alene communities is also significant. These "day trip"people spend monies on gas, dining and shopping in Spokane Valley when they travel to the HUB Sports Center for a day event. Through supporting the HUB Sports Center with these funds, we will continue to play an important role in the economic development of Spokane Valley. HUB Sports Center is "ALL-IN"when it comes to supporting the,families of the Spokane Valley. PROJECT BUDGET Please detail the budget for your project. In addition to completing the chart below, you must also submit your general operating budget, or fund-level budget for public agencies. PROJECT BUDGET SHEET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL To be filled out by Public/Municipal Agencies: 1. Municipality tourism marketing $ $ $ 2. Municipality event and festivals $ $ 3. Municipality facilities (operations &capital) $ $ $ To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting & advertising tourism $5,000 $2,000 $7,000 2. Non-municipal entities for marketing & operating events and festivals $12,000 $10,000 $22,000 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit orgs $38,000 $45,000 $83,000 TOTALS $55,000 $57,000 $112,000 *While matching funds are not required, the amount of additional funds an organization brings to an event is a good measure of that organization's commitment to success and the broad-base support for the project. VIII. ATTACHMENTS Please provide the following information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level. 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 5. List co-sponsors, if any, by title and type. City of Spokane Valley Request for 2022 Grant CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) _ (print or type name) Phil Champlin Title: Executive Director Date: September 30, 2021 City of Spokane Valley Request for 2022 Grant IV. Scope of Work HUB Sports Center Events Schedule 2022 DATES EVENTS Est. January 2, 2022' HUB Frost Fest Volleyball Jamboree _ 1250 January 9, 2022' Evergreen Region Volleyball - Power League 1250 January 16, 2022' Evergreen Region Volleyball -Winter Warm Up 1250 January 23, 2022' Evergreen Region Volleyball - Power League 1250 January 30, 2022' Club ZZU -Zoopalooza Volleyball Tournament 1250 February 4, 2022' Proving Grounds MMA Event 400 February 6, 2022' Sideout Volleyball Tournament 1200 February 13, 2022' ERVA Volleyball tournament 1000 February 19-20, 2022 ERVA Volleyball tournament 2500 February 23-26, 2022 State B Team Practices 400 Feb 26-27, 2022 ERVA Volleyball tournament 2500 March 5-6, 2022 Apex Volleyball Tournament V 2500 March 11-13, 2022' Middle School Basketball Championships 3000 March 18-20, 2022' Middle School Basketball Championships 3000 March 26-28, 2022 PNQ Volleyball 6000 April 1-3, 2022 PNQ Volleyball 6000 April 9-10, 2022 Inland NW Klassic Volleyball Tournament 2500 April 16-17, 2022' ERVA USA Volleyball Regionals 2500 April 24, 2022' Proving Grounds MMA Event 400 April 24-26, 2022 'Breakthrough Basketball Camp 250 May 1-2, 2022 Inland NW Volleyball Showcase 500 May 7-8, 2022 May Mania Pickleball Tournament 250 May 27-29, 2022 Pac-NW Girls Basketball Championships 2500 June 4-5, 2022 Pac-NW Boys Basketball Championships 2500 June 11, 2022' June Jam 3v3 Youth Basketball Tournament 250 June 18, 2022' _ _ All-State Girls' Basketball Games 1000 June 17-19, 2022 HUB Summer Slam Basketball Tournament 2000 July 8-10, 2022 HUB Summer Slam Basketball Tournament 2000 July 15-17, 2022 HUB Summer Slam Basketball Tournament 2000 July 19-21, 2022' Breakthrough Basketball Camp 150 July 26-28, 2022' Breakthrough Basketball Camp 150 August 1-3, 2022 Nigel Williams-Goss Basketball Camp 200 _ August 13-14, 2022 Pat Powers Volleyball Camp 100 September 17-18, 2022' Slamma Jamma Pickleball Tournament 200 September 26-27, 2022 Breakthrough Basketball Camp 100 October 15-16, 2022 ParaSport Wheelchair BK Showdown 1000 October 29, 2022' Superhero v. Villain Pickleball tournament 100 November 5-6, 2022' AAU Basketball - Boo Ball tournament 3000 December 13, 2022' Spike 2 Care Adult Volleyball Tournament 300 December 17-18, 2022 AAU Basketball - Santa Slammer 3000 V. Impact on Tourism Tracking information In State Out of In State Out of <50 State <50 >50 State>50 February 20, 2021 Evergreen Region Volleyball League Play 10 4 2 0 16 teams February 21, 2021 Evergreen Region Volleyball League Play 20 9 14 1 44 teams February 27, 2021 Evergreen Region Volleyball League Play 4 0 1 0 5 teams March 6, 2021 Evergreen Region Volleyball League Play 11 9 11 0 31 teams March 7, 2021 Evergreen Region Volleyball League Play 9 4 5 1 19 teams March 13, 2021 Evergreen Region Volleyball- Power League 8 0 2 0 10 teams March 14, 2021 Evergreen Region Volleyball- Power League 3 1 2 1 7 teams March 20, 2021 Evergreen Region Volleyball Spring Showdown 9 0 1 0 10 teams March 26, 2021 Lilac City Legends BK vs. Seattle April 9, 2021 Warrior Camp Proving Grounds MMA April 10, 2021 Evergreen Region Volleyball- Power League 11 7 1 2 21 teams April 11, 2021 Evergreen Region Volleyball-Power League 8 2 1 1 12 teams April 17, 2021 Lilac City Legends BK vs. Quad City, Iowa April 23-25, 2021 Breakthrough Basketball Camp April 25, 2021 ERVA Nationals Bid Tournament 0 1 3 0 4 reams May 1, 2021 USA Volleyball Regional's 10 7 6 2 25 teams May 2, 2021 USA Volleyball Regional's 25 12 19 7 63 teams May 15-17, 2021 PNQ Volleyball 3 2 14 19 38 teams May 21-23, 2021 PNQ Volleyball 4 5 16 18 43 teams June 4-6, 2021 Pac-NW Basketball Championships 21 4 6 1 32 teams June 11, 2021 Warrior Camp Proving Grounds MMA June 12, 2021 Lilac City Legends BK vs. Thurston County June 26, 2021 Lilac City Legends BK vs. Vancouver July 5-9, 2021 PGC Basketball Camp 80 campers July 10, 2021 Warrior Camp Boxing 15 0 24 3 42 fighters July 9-11, 2021 HUB Summer Slam Basketball Tournament 10 0 2 7 19 teams July 6-27, 2021 HUB HS Summer Volleyball League 3 3 1 4 11 teams tl July 16-18, 2021 HUB Summer Slam Basketball Tournament 9 5 9 0 23 teams July 17, 2021 Lilac City Legends BK vs. Quad City, Iowa July 20-22, 2021 Breakthrough Basketball Camp 56 campers July 23-25, 2021 Breakthrough Basketball Camp 59 campers August 2-4, 2021 Nigel Williams-Goss Basketball Camp 83 23 4 9 119 campers v August 7, 2021 Abundant Life Conference August 14-15, 2021 Pat Powers Volleyball Camp 65 campers August 28, 2021 Liberty Lake Throwdown Corn Hole Tournament 89 7 0 4 100 teams August 13, 2021 Proving Grounds MMA Event August 14, 2021 Lilac City Legends BK vs. Pacific NW (Federal Way) August 20, 2021 Lilac City Legends BK vs. Fairchild AFB September 2, 2021 Jiu Jitsu Martial Arts Tournament October 8-10, 2021 Breakthrough Basketball Camp October 16-17, 2021 ParaSport Wheelchair BK Spokane Showdown November 6-7, 2021 AAU Basketball -Boo Ball tournament December 18-19, 2021 AAU Basketball -Santa Slammer 52.6%0 15.1% 20.7% 11.5% In State Out of Slate In Stale Out of State <50 <50 >50 >50 2019 Levels 40% 10% 24% 26% INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 APR 7 Z OiC Employer Identification Number: Date: *' 26-0173199 DLN: 609204007 SPOKANE VALLEY HUB Contact Person: C/O JUDI WILLIAMS JOANNA YAWNEY ID# 95078 PO BOX 604 Contact Telephone Number: GREENACRES, WA 99016-0604 (877) 829-5500 • Accounting Period Ending: December 31 Public Charity Status: 170 (b) (1) (A) (vi) • -Form 990 Required: Yes Effective Date of Exemption: May 15, 2007 Contribution Deductibility: Yes Addendum Applies: Yes Dear Applicant: We are pleased-to inform you that upon review of your application for tax exempt status we have determined that you are exempt from Federal income tax under section 501(c) (3) of the Internal Revenue Code. Contributions to you are deductible under section 170 of the Code. You are also qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the Code. Because this letter could help resolve any questions regarding your exempt status, you should keep it in your permanent records. Organizations exempt under section 501(c) (3) of the Code are further classified as either public charities or private foundations. We determined that you are a public charity under the Code section(s) listed in the heading of this letter. Please see enclosed Publication 4221-PC, Compliance Guide for 501(c) (3) Public Charities, for some helpful information about your responsibilities as an exempt organization. • • Letter 947 (DO/CG) — - I • -2- SPOKANE VALLEY HUB We have sent a copy of this letter to your representative as indicated in your power of attorney. Sincerely, r Robert Choi Director, Exempt Organizations Rulings and Agreements Enclosure: Publication 4221-PC • • • Letter 947 (DO/CG) Budget 2022 HUB SPORTS CENTER Income Studio/Office Rentals $13,000 Court/Facility Rentals $245,000 HUB Programs $136,000 Vending/Concessions $10,000 Donations $65,000 Sponsorship $50,000 Grants $75,000 Miscellaneous $10,000 Total Income $604,000 Expenses Facility Supplies $39,000 Equipment Purchase $5,700 Maintenance/Repairs $40,000 Advertising/Mktg $30,000 Insurance $38,000 Rent $12,000 Utilities $49,000 Taxes $52,000 Consultant / Contractors $30,000 Payroll, Taxes & Benefits $300,000 Miscellaneous $2,500 Total Expense $598,200 Net into Reserve Acct $5,800 fl SPORTS CENTER BOARD OF DIRECTORS MEETING Minutes August 12, 2021 — 7:30am 11 HUB Sports Center — Mezzanine In Attendance: Phil, Ryan B, David, Amy, Ken, Molly, Charlie, Ryan E, Cassi, John, Max, Brian P, Brian A, and Steven. Not in Attendance: Greg, Wayne, Jeff and Nicky. 1. Opening Prayer - David 2. Approval of July Meeting Minutes was motioned by Amy, seconded by Ken and approved by the board. 3. Monthly Financial Update/Approval - motioned by Brian P to approve the financials, this was seconded by David and approved by the board. 4. COVID-19 a. Updated Guidelines — June 30 there were some updated guidelines for Covid and we may be facing more in the future. Low to moderate sports will not need masks. 5. Committee Updates/Discussions a. Executive Committee i. Board Member Recruitment/Executive Committee ii. Board Member Matrix b. Finance i. Investment Account — monthly/quarterly contribution of$15K was deposited. c. Facility i. Inside Air Handling ii. Bleachers d. Development i, Brian P motioned that: The Board of Directors approves and endorses the HUB Sports Center staff applying for Lodging Tax grants from Spokane Valley and Liberty Lake municipalities as well as other grant opportunities that open up with those cities as well as Spokane County. This was seconded by Ryan E and approved by the board. ii. HUB Breakfast 1. Table Captains e. Programming Update i. May-July review ii. August-October preview 6. Action Items a. Strategy Team Meeting — The following were discussed and the Executive Director gave the recommendations to continue to look into these opportunities. b. Murdock Essentials of Development commitment 7. Informational Items a. Volunteers for Corn Hole b. Right of Way from Selkirk MS c. Annual Meeting is Next month Next Board Meeting: September 9th, 7:30am — ANNUAL MEETING Executive Committee Meeting: October date TBD dor • • SPORTS CENTER Board of Directors 2021-2022 Ken VanSickle— Board President Jeff Grimes —Board Member Brian Prior— Board VP John Guarisco —Board Member Ryan Eskelson — Board Treasurer Cherne Haskell—Board Member Charlie Wolff— Board Secretary Nicky Poole-Duris —Board Member Steven Anderson — Board Member Don Savage —Board Member Brian Asmus —Board Member Max Spalding—Board Member Laura Frank—Board Member Rob White — Board Member Wayne Frost—Board Member Staff Phil Champlin —Executive Director Cassi Atwood — Operations Director Ryan Barbieri —Program Director Address: 19619 L. Cataldo Ave, Liberty Lake,WA 99016-Phone: 509-927-9602 Fax:509-927-0622-www.bubsportscenterorg k CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES I. PROJECT APPLICATION DEADLINE: October 1, 2021, before 4:00 p.m. Project Title: Brews, Beats& Eats Type of Project: Music,food and local brewery celebration Applicant:JAKT Foundation, Tom Stebbins Phone: (509)621-0125 E-mail: tom@jaktfoundation.org Address: PO Box 85 City: Newman Lake State WA Zip 99025 Applicants are: Non-profit Yes,JAKT Foundation Amount requested: $15,000 Applicant's match: $18,500 Total project budget: $33,500 Is this a new or continuing activity? NEW Will there be an admission charge for this activity?Yes If so, how much?$10/person depending upon purchase and timing of purchase. fI. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The JAKT Foundation was founded in 2017 to support events such as Crave and now a Spokane Valley Farmers Market. Vision: To create, celebrate, enrich, and expand our sense of community through events. Mission: Be the catalyst to build collaborations for the betterment of community. Core Values: * Build Community* Collaborate * Highlight chefs * Partner of Spokane Valley * Catalyst for community alliances * Passion for food and cultural events * Inclusionary, everyone benefits * Culinary leadership locally, regionally& nationally III. PROJECT SUMMARY Support of Brews, Beats & Eats will assist in marketing and event costs to reduce risk of JAKT in producing a new community event. Brews, Beats&Eats will be: • A one day all ages music, food truck and local craft brewery event (including locally created non- alcoholic products like root beer)on June 4t",Saturday. • Utilizing CenterPlace west lawn with 40' x 40'tent and limited seating attendees will be encouraged to bring lawn chairs and blankets while enjoying the grass and new space. • Family lawn games will be available, and all ages can freely move within the fenced west lawn area. IV. SCOPE OF WORK a. What it is you wish to do? Create a new event at CenterPlace featuring the new west lawn space. b. How and why the community will benefit?Another event/activity for all ages to enjoy within Spokane Valley city limits and highlighting the expanded and remodeled CenterPlace space. c. What are the beginning and ending dates of your project?June 4, 2022 d. Is it a seasonal activity appropriate to its location? Yes,the event capitalizes on the attributes of CenterPlace' s outside venue options. e. If an outdoor activity, are there any weather-related constraints? None as the event happens rain or shine and tents for shade and cover will be provided for vendors. f. What measures you will apply to evaluate its success? Do hotels see incremental occupancy opening weekend of the SV Farmers Market and the new Brews, Beats & Eats event. One more activity to keep guests in Spokane Valley and enjoying the community. V. IMPACT ON TOURISM Projected(expected to participate) Total Overall Attendance 1,000 Attendees who traveled 50 miles or more to attend Total 100 Of total, attendees who traveled from another state or country 50 Attendees who stayed overnight Paid Accommodations 50 Unpaid Accommodations 100 Paid Lodging Nights 50 Provide a description of the methods used in making the above estimations: 1. Direct Count—We will secure a count from participating lodging properties and note within our wrap up report exact totals reported. 2. Indirect Count—will not be used. 3. Representative Survey—will not be used. 4. Informal Survey—will not be used. 5. Structured estimate—will be used and will be copy of the Spokane Public Facility District/Spokane Sports Commission formula of estimating room nights at 10%of attendance. Description of the methods that will be used to determine actual attendance 1. Gate ticket sales—actual paid attendance which is a combination of presells and packages. 2. Volunteers 3. Staff including vendors VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN YOUR APPLICATION Council Goals and Priorities for Use of the Initial 2% Lodging Tax 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing i. Brews, Beats& Eats will assist in tourism marketing of Spokane Valley. b. The marketing and operations of special events and festivals i. Funds will be used in making the event occur. c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district. i. Brews, Beats&Eats will pay over$4,000 to Spokane Valley CenterPlace for rent. d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. N/A 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City(recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. N/A 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. New event,TBD. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. a. If available in 2022,we will apply to cover incremental PR and marketing efforts beyond what we're requesting within this application. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. Acknowledged VII. PROJECT BUDGET GRANT AMOUNT ENTITY CATEGORY RECEIVED MATCH TOTAL To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $15,000 $18,500 $33,500 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS $15,000 $18,500 $33,500 2021 Approved 9/1/21 2022 Brews Beats&Eats Festival Income Budget Admission @ $20 16000 JAKT Grant 2500 Sponsorship 15000 Total BBE Revenue 33500 Brews Beats&Eats Expenses Administration-15%of budget 5625 Advertising 5000 Music/Backline 5000 Event Production 5000 Operations 3200 CenterPlace Rent 2000 Tents 7000 Total BBE Expenses 32825 Net Income/donation of NonProfit 675 2022 Approved 9/1/21 2022 Budget Farmers Market-CenterPlace& Chamber Farmers Market Revenue 88000 SVFM Expenses 88000 Net Revenue SVFM 0 Crave-CenterPlace Crave Revenue 186200 Crave Expenses 165050 JAKT Donation fund/Buffer 21150 Net Revenue Crave 0 Brews Beats&Eats-CenterPlace JAKT Support 2500 BBE Revenue 31000 BBE Expenses 32825 Net Revenue BBE 675 Beer Festival August-CenterPlace JAKT Support 2500 • Festival Revenue 35000 Festival Expenses 37825 Net Revenue Festival -325 VIII. ATTACHMENTS 1. Copy of 501 c 3 exempt status—attached. 2. Copy of most recent approved and proposed budget (above) 3. Copy of meeting minutes showing official approval of project and authorization of application of a signed resolution of the board of directors authorizing the application—attached. 4. List of members of the organization's board of directors and principal staff. a. Adam Hegsted —President b. Karen Stebbins—Vice President c. Jennifer Hegsted —Secretary d. Thomas Stebbins—Treasurer e. Katy Lee—SVFM Market Manager&JAKT staff 5. List co-sponsors, if any, by title and type.—none Certification The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of locadstate, or federal law. 2. That it has read and understa ds the informati•.�. . fined in the Grant application and will m coply with all provisions t reof. Certified By: 011 Thomas W, Stebbins Treasurer,JAKT Foundation September 30, 2021 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: S E P 1 '1 201? 81-5319087 DLN: 17053087331017 JAKT FOUNDATION Contact Person: IDS 31614 C/O THE LEVY LAW FIRM PLLC JEFFREY GAUNCE 421 W RIVERSIDE STE 381 Contact Telephone Number: SPOKANE, WA 99201 (877) 829-5500 Accounting Period Ending; December 31 Public Charity Status: 509(a)(2) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 10, 2017 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also cualified to receive tax deductible bequests, devises, transfers or gifts under Sectionc2055, 2106, or 2522. This letter ur recocould d help resolve questions on your exempt status. Please keep. for Organizations exempt under IRC Section 501(c)(3) are further classified as either public charitiesvate ns. We of this mined letter. you're a public letter If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N. the e-Postcard). if you don't file a required return or notice for three consecutive years. your exempt status will be automatically revoked. encwo send daddendumt its han top tegrallparttofrthistletn teddendum applies, the. For important information about your responsibilities as a tax-exempt organization, go to www.irs.govfchanities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping. reporting, and disclosure requirements. Letter 947 -2- JAKT FOUNDATION Sincerely, Director, Exempt Organizations Rulings and Agreements Letter 947 MINUTES OF SEPTEMBER 1, 2021 MEETING OF BOARD OF DIRECTORS AND OFFICERS OF JAKT FOUNDATION The Board of Directors of JAKT Foundation(the"Company")met as follows: 1. Date: September 1, 2021. 2. Time: 4pm. 3. Place:Newman Lake, Washington. 4. Present: Adam Hegsted,Jennifer Hegsted, Thomas Stebbins, and Karen Stebbins. 5. Presiding Officer: Adam Hegsted. 6. Acting Secretary: Karen Stebbins. A. Waiver of Notice. The undersigned, by execution of these minutes, hereby waives all requirements as to formal notice of the time, place, and object of this meeting and consents to all action taken at this meeting or any adjournment thereof. B. Confirmed July 19,2021 minutes & actions. C. New Projects: Approved the following projects and budget for each. 1. Brews,Beat& Eats—adjusted to leverage the opening Spokane Valley Farmers Market with infrastructure(tent)and opening food truck night to be followed on Saturday by the all ages event. 2. A To Be Named Craft Beer event to be held in early August with 15+craft breweries with music for those over 21 event. 3. Approved treasurer, Tom Stebbins,to start the effort of building an overall event budget and "event shark tank"to encourage more events representing the culture and diversity of the Spokane Valley region. Minutes—JAKT Foundation C. Officers. The following officers were unanimously approved following a motion and a vote: Adam Hegsted—President Karen Stebbins--Secretaty Jennifer Hegsted—Member Torn Stebbins—Treasurer There being no further business to come before the meeting, the meeting was adjourned. 4Y)QA.0" Karen Stebbins, Secretary APPROyED: • Adam Hegsted, President J ifer f sted, Pres e - T-Lomas Stebb' s, President Minutes—JAKT Foundation 3 CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES I. PROJECT APPLICATION DEADLINE: October 1, 2021, before 4:00 p.m. Project Title: TBD Name Craft Beer Festival Type of Project: 15+Craft Breweries, music and LeCatering food Applicant: JAKT Foundation,Tom Stebbins Phone: (509)621-0125 E-mail: tom@laktfoundation.org Address: PO Box 85 City: Newman Lake State WA Zip 99025 Applicants are: Non-profit Yes,JAKT Foundation Amount requested: $15,000 Applicant's match:$22,500 Total project budget: $37,500 Is this a new or continuing activity? NEW Will there be an admission charge for this activity?Yes If so, how much?$20/person depending upon purchase and timing of purchase. II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The JAKT Foundation was founded in 2017 to support events such as Crave and now a Spokane Valley Farmers Market. Vision: To create, celebrate, enrich, and expand our sense of community through events. Mission: Be the catalyst to build collaborations for the betterment of community. Core Values: * Build Community * Collaborate * Highlight chefs * Partner of Spokane Valley Catalyst for community alliances * Passion for food and cultural events * Inclusionary, everyone benefits * Culinary leadership locally, regionally& nationally III. PROJECT SUMMARY Support of the TBD Craft Beer Festival will assist in marketing and event costs to reduce risk of JAKT in producing a new community event. The TBD Name Craft Beer Event will be: • A one-day 21+age craft beer event with music will feature the best of the regions craft beer, seltzers and ciders on August 13(h, Saturday. • Utilizing CenterPlace west lawn with 40' x 40' tent and limited seating attendees will be encouraged to bring lawn chairs and blankets while enjoying the grass and new space. • Lawn games will be available, and all attendees can freely move within the fenced west lawn area. IV. SCOPE OF WORK a. What it is you wish to do? Create a new event at CenterPlace featuring the new west lawn space. b. How and why the community will benefit? Another event/activity to enjoy within Spokane Valley city limits and highlighting the expanded and remodeled CenterPlace space. c. What are the beginning and ending dates of your project? August 13, 2022 d. Is it a seasonal activity appropriate to its location? Yes, the event capitalizes on the attributes of CenterPlace' s outside venue options. e. If an outdoor activity, are there any weather-related constraints? None as the event happens rain or shine and tents for shade and cover will be provided for vendors. f. What measures you will apply to evaluate its success? Do hotels see incremental occupancy this weekend as the event generates buzz throughout the NW and the new craft beer event. One more activity to keep guests in Spokane Valley and enjoying the community. V. IMPACT ON TOURISM Projected(expected to participate) Total Overall Attendance 1,000 Attendees who traveled 50 miles or more to attend Total 100 Of total, attendees who traveled from another state or country 50 Attendees who stayed overnight Paid Accommodations 50 Unpaid Accommodations 100 Paid Lodging Nights 50 Provide a description of the methods used in making the above estimations: 1. Direct Count—We will secure a count from participating lodging properties and note within our wrap up report exact totals reported. 2. Indirect Count—will not be used. 3. Representative Survey—will not be used. 4. Informal Survey—will not be used. 5. Structured estimate—will be used and will be copy of the Spokane Public Facility District/Spokane Sports Commission formula of estimating room nights at 10%of attendance. Description of the methods that will be used to determine actual attendance 1. Gate ticket sales—actual paid attendance which is a combination of presells and packages. 2. Volunteers 3. Staff including vendors VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN YOUR APPLICATION Council Goals and Priorities for Use of the Initial 2% Lodging Tax 1, Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing i. The TBD name Craft Beer Festival will assist in tourism marketing of Spokane Valley. b. The marketing and operations of special events and festivals i. Funds will be used in making the event occur. c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district. i. The Craft Beer Festival will pay over$4,000 to Spokane Valley CenterPlace for rent. d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. N/A 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City(recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. N/A 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. New event,TBD. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. a. If available in 2022,we will apply to cover incremental PR and marketing efforts beyond what we're requesting within this application. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. Acknowledged VII. PROJECT BUDGET GRANT AMOUNT ENTITY CATEGORY RECEIVED MATCH TOTAL To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $15,000 $22,500 $37,500 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS $15,000 $22,500 $37,500 2021 Approved 9/1/21 2022 Craft Beer Festival Income Budget Admission @$20 20000 JAKT Grant 2500 Sponsorship 15000 Total Festival Revenue 37500 Festival Expenses Administration-15%of budget 5625 Advertising 5000 Music/Backline 8000 Event Production 5000 Operations 3200 CenterPlace Rent 4000 Tents 7000 Total Festival Expenses 37825 Net Income/donation of Nonprofit 325 2022 Approved 9/1/21 2022 Budget Farmers Market-CenterPlace& Chamber Farmers Market Revenue 88000 SVFM Expenses 88000 Net Revenue SVFM 0 Crave-CenterPlace Crave Revenue 186200 Crave Expenses 165050 JAKT Donation fund/Buffer 21150 Net Revenue Crave 0 Brews Beats&Eats-CenterPlace JAKT Support 2500 88E Revenue 31000 OBE Expenses 32825 Net Revenue BBE 675 Beer Festival August-CenterPlace JAKT Support ' Festival Revenue 35000 Festival Expenses 37825 Net Revenue Festival -325 VIII. ATTACHMENTS 1. Copy of 501 c 3 exempt status—attached. 2. Copy of most recent approved and proposed budget (above) 3. Copy of meeting minutes showing official approval of project and authorization of application of a signed resolution of the board of directors authorizing the application—attached. 4. List of members of the organization's board of directors and principal staff. a. Adam Hegsted— President b. Karen Stebbins—Vice President c, Jennifer Hegsted—Secretary d. Thomas Stebbins—Treasurer e. Katy Lee--SVFM Market Manager&JAKT staff 5. List co-sponsors, if any, by title and type.—none Certification The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contain- t i► he Grant application and will comply with all provisions thereof. /////' Certified By: / Thomas W. Stebbins Treasurer,JAKT Foundation September 30, 2021 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: S E P 12017 81-5319087 DLN: 17053087331017 JAKT FOUNDATION Contact Person: ID# 31614 C/O THE LEVY LAW FIRM PLLC JEFFREY GAUNCE 421 W RIVERSIDE STE 381 Contact Telephone Number: SPOKANE, WA 99201 (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 509(a)(2) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 10, 2017 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2P se keep it Olear2 This for yourletter records.couldhelp resolve questions on your exempt status. Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRE Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/chanties. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities. which describes your recordkeeping, reporting, and disclosure requirements. Letter 947 ) it tl -2- JAK7 FOUNDATION Sincerely, Director, Exempt Organizations Rulings and Agreements Letter 947 MINUTES OF SEPTEMBER 1, 2021 MEETING OF BOARD OF DIRECTORS AND OFFICERS OF JAKT FOUNDATION The Board of Directors of JAKT Foundation (the"Company")met as follows: 1. Date: September 1, 2021. 2. Time: 4pm. 3. Place:Newman Lake, Washington. 4. Present: Adam Hegsted,Jennifer Hegsted,Thomas Stebbins, and Karen Stebbins. 5.Presiding Officer: Adam Hegsted. 6. Acting Secretary: Karen Stebbins. A. Waiver of Notice. The undersigned, by execution of these minutes, hereby waives all requirements as to formal notice of the time, place, and object of this meeting and consents to all action taken at this meeting or any adjournment thereof. B. Confirmed July 19, 2021 minutes &actions. C. New Projects: Approved the following projects and budget for each. 1. Brews, Beat& Eats—adjusted to leverage the opening Spokane Valley Farmers Market with infrastructure(tent) and opening food truck night to be followed on Saturday by the all ages event. 2. A To Be Named Craft Beer event to be held in early August with 15+craft breweries with music for those over 21 event. 3. Approved treasurer, Tom Stebbins,to start the effort of building an overall event budget and "event shark tank"to encourage more events representing the culture and diversity of the Spokane Valley region. Minutes—JAKT Foundation C. Officers. The following officers were unanimously approved following a motion and a vote: Adam Hegsted—President Karen Stebbins—Secretary Jennifer Hegsted—Member Tom Stebbins—Treasurer There being no further business to come before the meeting, the meeting was adjourned. 61)Ct".-19-\.. Karen Stebbins, Secretary APPRO}IE D: Adam Hegsted, President J fifer F steel, Pres e T somas Stebb. s, President Minutes—JAKT Foundation CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES I. PROJECT APPLICATION DEADLINE: October 1, 2021, before 4:00 p.m. Project Title: Crave! Type of Project: Food and drink celebration Applicant:JAKT Foundation,Tom Stebbins Phone: (509)621-0125 E-mail: tom@iaktfoundation.org Address: PO Box 85 City: Newman Lake State WA Zip 99025 Applicants are: Non-profit Yes,JAKT Foundation Amount requested: $50,000 Applicant's match: $136,200 Total project budget: $186,200 Is this a new or continuing activity?Continuing 56 year in Spokane Valley Will there be an admission charge for this activity?Yes If so, how much?$45+/person depending upon purchase and timing of purchase. II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The JAKT Foundation was founded in 2017 to support events such as Crave and now a Spokane Valley Farmers Market. Vision: To create, celebrate, enrich, and expand our sense of community through events. Mission: Be the catalyst to build collaborations for the betterment of community. Core Values: * Build Community * Collaborate * Highlight chefs * Partner of Spokane Valley * Catalyst for community alliances * Passion for food and cultural events * Inclusionary, everyone benefits * Culinary leadership locally, regionally& nationally III. PROJECT SUMMARY Support of Crave!will assist infrastructure costs of conducting the event and a social media team effort that includes photography and video assets and PR outreach. CRAVE Objectives: • Provide the Spokane region with a high-end multi-day culinary event. • Highlight the culinary scene in Spokane and reinforce to Chefs throughout the country that Spokane Valley is a great destination to do business. • Drive destination travel to the Spokane region using food as a draw and to then experience the many attributes the region enjoys. • Feature local and regional food from fresh seafood, ranch-raised meats to farm-to-table produce and inventive desserts. Crave is: • A multi-day multi ticketed event under one name, Crave! o Each event ticket is all inclusive, one price and everything is hosted. • Main events are Thursday, Friday & Saturday o 15 chefs and a mix of 15 wineries, distillers, or breweries at each event, none repeating. ■ Chef mix is focused on James Beard nominated chefs or similar quality. • Wineries and their winemakers. o Limited in capacity to ensure a quality guest experience. IV. SCOPE OF WORK a. What it is you wish to do? We will continue the build of the region's largest and only multi-day food and drink event with a special focus of growing motel/hotel room nights specifically in Spokane Valley who are nearest to the event. b. How and why the community will benefit?This regional event is in Spokane Valley providing a source of pride to the Spokane Valley community and a recruiting tool for Spokane Valley to talk about their large events that are part of the social fabric and diversity of the city. Further, as the Inland Northwest's only multiple-day food and drink event foodies throughout the Northwest, West Coast and nation will stay and explore all that Spokane Valley has to offer. c. What are the beginning and ending dates of your project?July 13 —17, 2022 d. Is it a seasonal activity appropriate to its location? Yes,the event capitalizes on the attributes of CenterPlace' s inside and outside venue options. e. If an outdoor activity, are there any weather-related constraints? None as the event happens rain or shine and tents for shade and cover will be provided for vendors. f. What measures you will apply to evaluate its success? Do hotels see incremental occupancy Crave! weekend as we look to create "compression" with Spokane Valley as the center of this effort? Do guests have good things to say so word of mouth expands the reach of the event outside of the local region? V. IMPACT ON TOURISM Projected(expected to participate) Total Overall Attendance 1,400 Attendees who traveled 50 miles or more to attend Total 375 Of total, attendees who traveled from another state or country 175 Attendees who stayed overnight Paid Accommodations 150 Unpaid Accommodations 250 Paid Lodging Nights 150 Provide a description of the methods used in making the above estimations: 1. Direct Count—We will secure a count from participating lodging properties and note within our wrap up report exact totals reported. 2. Indirect Count—will not be used. 3. Representative Survey—will not be used. 4. Informal Survey—will not be used. 5. Structured estimate—will be used and will be copy of the Spokane Public Facility District/Spokane Sports Commission formula of estimating room nights at 10%of attendance. Description of the methods that will be used to determine actual attendance 1. Gate ticket sales—actual paid attendance which is a combination of presells and packages. 2. Volunteers 3. Staff including performers VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN YOUR APPLICATION Council Goals and Priorities for Use of the Initial 2% Lodging Tax 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal,Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing i. Crave!will assist in tourism marketing of Spokane Valley. Further it is a Spokane Valley event the staff of Visit Spokane is fully engaged in supporting. b. The marketing and operations of special events and festivals i. Funds will be used in marketing and operations of Crave! c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district. i. Crave!rents and paid over$8,000 to Spokane Valley CenterPlace for Crave! historically. d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. N/A 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City(recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. N/A 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. a. Crave!met this objective in 2017, 2018, 2019, 2021 and anticipates 2022 to increase room night growth by working closely with all lodging properties and specifically being proactive with Spokane Valley specific lodging properties to create event packages to grow this regional destination event. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. a. Crave!received a$7,000(reduced to$3200 related to COVID)Spokane County TPA grant in 2020. If available in 2022,we will apply to cover incremental PR and marketing costs beyond what we're requesting within this application. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. Acknowledged VII. PROJECT BUDGET GRANT AMOUNT ENTITY CATEGORY RECEIVED MATCH TOTAL To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $15,000 $10,000 $25,000 2. Non-municipal entities for marketing and operating events and festivals $35,000 $126,200 $161,200 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations TOTALS $50,000 $136,200 $186,200 2021 Approved 9/1/21 2022 Crave Income Budget Thursday-Burger Bash 27400 Friday-Foods from Around the World 35000 Saturday-Fire&Smoke 35000 Ticket Packages 8800 Sponsors City of SV Economic Grant 0 Other sponsors 80000 Total Crave Revenue 186200 Crave Expenses Administration-15%of budget 29230 Advertising 36500 Chefs from out of Area 6600 Local lodging for out of area chefs 5000 Food for chefs all events 18000 Event Production 46220 Operations 3200 CenterPlace Rent 8300 Tents 12000 Total Crave Expenses 165050 Net Income/donation of NonProfit 21150 JAKT Foundation 2022 Approved 9/1/21 2022 Budget Farmers Market-CenterPlace& Chamber Farmers Market Revenue 88000 SVFM Expenses 88000 Net Revenue SVFM 0 Crave-CenterPlace Crave Revenue 186200 Crave Expenses 165050 JAKT Donation fund/Buffer 21150 Net Revenue Crave 0 Brews Beats&Eats-CenterPlace JAKT Support 2500 BBE Revenue 31000 BBE Expenses 32825 Net Revenue BBE 675 Beer Festival August-CenterPlace JAKT Support 2500 Festival Revenue 35000 Festival Expenses 37825 Net Revenue BBE -325 VIII. ATTACHMENTS 1. Copy of 501 c 3 exempt status—attached. 2. Copy of most recent approved and proposed budget (above) 3. Copy of meeting minutes showing official approval of project and authorization of application of a signed resolution of the board of directors authorizing the application—attached. 4. List of members of the organization's board of directors and principal staff. a. Adam Hegsted —President b. Karen Stebbins—Vice President c. Jennifer Hegsted —Secretary d. Thomas Stebbins—Treasurer e. Katy Lee—SVFM Market Manager&JAKT staff 5. List co-sponsors, if any, by title and type.—none Certification The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of loca state, or federal law. 2. That it has read and u erstands the informal'. 'on fined in the Grant application and will comply with all prow' ns thereof. 4 /AI'4. Certified By: Thomas W. Stebbins Treasurer,JAKT Foundation September 30, 2021 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: S E P I ZO17 81-5319087 DLN: 17053087331017 JAKT FOUNDATION Contact Person: IDIf 31614 CIO THE LEVY LAW FIRM PLLC JEFFREY GAUNCE 421 W RIVERSIDE STE 381 Contact Telephone Number: SPOKANE, WA 99201 (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 509(a)(21 Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 10. 2017 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section status.2P�easerkeep2itThis for yourer recordds,help resolve questions on your Organizations exempt under IRC Section 501(c)(3) are further classified as either ypunnder therIRCeSectionilistedoatdtheotop We determined a public If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to w .irs_gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities. which describes your recordkeeping, reporting, and disclosure requirements. Letter 947 It -2- JAKT FOUNDATION Sincerely, 7-*4 �. ; Director, Exempt Organizations Rulings and Agreements Letter 947 MINUTES OF SEPTEMBER 1, 2021 MEETING OF BOARD OF DIRECTORS AND OFFICERS OF JAKT FOUNDATION The Board of Directors of JAKT Foundation(the"Company")met as follows: 1. Date: September 1, 2021. 2. Time: 4pm. 3. Place:Newman Lake, Washington. 4. Present: Adam Hegsted, Jennifer Hegsted, Thomas Stebbins, and Karen Stebbins. 5. Presiding Officer: Adam Hegsted. 6. Acting Secretary: Karen Stebbins. A. Waiver of Notice. The undersigned, by execution of these minutes, hereby waives all requirements as to formal notice of the time, place, and object of this meeting and consents to all action taken at this meeting or any adjournment thereof. B. Confirmed July 19, 2021 minutes & actions. C. New Projects: Approved the following projects and budget for each. 1. Brews, Beat&Eats—adjusted to leverage the opening Spokane Valley Farmers Market with infrastructure(tent) and opening food truck night to be followed on Saturday by the all ages event. 2. A To Be Named Craft Beer event to be held in early August with 15+craft breweries with music for those over 21 event. 3. Approved treasurer, Torn Stebbins,to start the effort of building an overall event budget and "event shark tank"to encourage more events representing the culture and diversity of the Spokane Valley region. Minutes--JAKT Foundation C. Officers. The following officers were unanimously approved following a motion and a vote: Adam Hegsted—President Karen Stebbins—Secretary Jennifer Hegsted—Member Tom Stebbins—Treasurer There being no further business to come before the meeting, the meeting was adjourned. 1)K)QA,O. Karen Stebbins, Secretary APPROY,ED: Adam Hegsted, President J ifer f sted, Pres' e T omas Stebb. s, President Minutes—JAICT Foundation CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES -� PROJECT APPLICATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Title: Spokane Valley Farmers Market/Sprague Avenue Farmers Market Type of Project: Farmers Market Will there be an admission charge for this activity? No If so, how much? n/a Applicant: JAKT Foundation by Tom Stebbins Phone: (509)621-0125 E-mail: tom@jaktfoundation.org Address: PO Box 85 City: Newman Lake State WA Zip 99025 Applicants are: Non-profit Yes,JAKT Foundation Amount requested: $25,000 Applicant's match: $63,000 Total project budget: $88,000 Is this a new or continuing activity? Continuing,year 4 and new year 1 II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The JAKT Foundation was founded in 2017 to support events such as Crave and now a Spokane Valley Farmers Market. Vision: To create, celebrate, enrich, and expand our sense of community through events. Mission: Be the catalyst to build collaborations for the betterment of community. Core Values: * Build Community * Collaborate * Highlight chefs * Partner of Spokane Valley * Catalyst for community alliances * Passion for food and cultural events * Inclusionary, everyone benefits * Culinary leadership locally, regionally & nationally III. PROJECT SUMMARY JAKT Foundation desires to execute and follow our vision and mission statement by continuing the Farmers Market at Spokane Valley CenterPlace,while adding a new farmers market more central to Spokane Valley on Sprague Avenue in partnership with the Greater Spokane Valley Chamber of Commerce. The Spokane Valley Farmers Market is located at CenterPlace to build upon the role as the Spokane Valley location for events and the Monday/Tuesday Sprague Avenue Farmers Market adds another consistent"event" within Spokane Valley to enhance tourists to stay local and build further economic activity within the farmers market community. We will continue our quest to build a sense of pride and services to Spokane Valley while creating a fun place to meet, greet,find locally grown farm products and handcrafted items every Friday and Monday/Tuesday night. IV. SCOPE OF WORK Fully describe the project. Expand on your Project Summary to address such issues as: a. What it is you wish to do? Maintain the Spokane Valley Farmers market with financial stability while partnering with the Greater Spokane Valley Chamber of Commerce with a Sprague Avenue Farmers Market as we continue our work in creating a community assets for Spokane Valley. b. How and why the community will benefit? Highlight local farmers and artisans while creating a vibrant and fun market that residents will be happy to support and proud to show off to their friends throughout the region. ,;. What are the beginning and ending dates of your project? Every Friday night from 4pm to 8pm at CenterPlace from June 3 to September 16, 2022 and June 6/7 to September 12/13, 2022 for the Sprague Avenue Farmers Market. d. Is it a seasonal activity appropriate to its location?Yes, the event capitalizes on the attributes of CenterPlace' s inside and outside venue options and adds a community destination amenity to Sprague Avenue. e. If an outdoor activity, are there any weather-related constraints?The Spokane Valley Farmers Market will be held outside in the NW corner of the CenterPlace parking lot and the Sprague Avenue Farmers Market will be held outside at the Greater Spokane Valley Chamber of Commerce parking lot. Rain or shine the Spokane Valley Farmers Market and Sprague Avenue Farmers Market will happen realizing weather can affect attendance. f. What measures you will apply to evaluate its success? Hotels will have a "local" amenity to direct guests too. Another fun thing in Spokane Valley to do on a Friday night and reinforce returning to a Spokane Valley lodging property. 1. We will survey attendees so we can be responsive to desires for events and dates. 2. Combine the objective results shared in our wrap up report to Spokane Valley City Council and administration subjective perceptions for final results and return on investment of these valuable funds. V. IMPACT ON TOURISM Projected(expected to participate) Total Overall Attendance 2020 10,500 Total Overall Attendance 2021 13,650 Total Projected Attendance 2022 25,000 Attendees who traveled 50 miles or more to attend Total (estimate) 500 Of total, attendees who traveled from another state or country 150 Attendees who stayed overnight Paid Accommodations 50 Unpaid Accommodations 100 Paid Lodging Nights 50 Provide a description of the methods used in making the above estimations: 1. Direct Count—We will secure a count from participating lodging properties and note within our wrap up report exact totals reported. 2. Indirect Count—will not be used. 3. Representative Survey—will not be used. 4. Informal Survey—will not be used. 5. Structured estimate—will be used and will be copy of the Spokane Public Facility District/Spokane Sports Commission formula of estimating room nights at 10%of attendance. Description of the methods that will be used to determine actual attendance 1. Head count by the market manager and staff at each market, every half hour. VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN APPLICATION Council Goals and Priorities for Use of the Initial 2% Lodging Tax 1. Council desires to direct awards toward funding new and innovative projects,activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing i. Spokane Valley Farmers Market&the Sprague Avenue Farmers Market will assist in tourism marketing of Spokane Valley. Further both are Spokane Valley events your lodging tax dollars will support. b. The marketing and operations of special events and festivals i. Funds will be used in marketing and operations of Spokane Valley&Sprague Avenue Farmers Market. c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district. i. Spokane Valley Farmers Market will rent and pay$10,400 to Spokane Valley CenterPlace for holding the farmers market at this location. d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non- profit organizations. N/A 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City(recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. N/A 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. a. Spokane Valley Farmers Market will complement this objective in 2022 and the addition of the Sprague Avenue Farmers Market will add to the effort. The farmers market will continue to provide an amenity for tourism and the greater community that is part of any vibrant community. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District.Spokane Valley&the Sprague Avenue Farmers Market will not submit an application from this funding source. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. Acknowledged VII. PROJECT BUDGET GRANT AMOUNT ENTITY CATEGORY RECEIVED MATCH TOTAL To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $ 25,000 $ 63,000 $ 88,000 3. Non-municipal entities for operations of tourism-related facilities owned by non- profit organizations $ $ $ • The #1 reason there is a Farmers Market in Spokane Valley is due to Spokane Valley Lodging tax grant continuation of support resulting in $7200 last year which was used to underwrite the cost of a market manager to secure vendors and line up the logistics of the market. • The JAKT Foundation is requesting$25,000, 2/3's of full amount of the market manager position, this year to ensure the market manager position can maintain organized and continues to find the best vendors to bring to the community and boost attendance. It also allows the ability of the SVFM and SAFM to provide space to farmers and vendors at minimal cost, and to allow nonprofit and community partners at no cost. • Your support will allow the Spokane Valley Farmers Market to start planning without a firm commitment of corporate or vendor fees that are needed now as we work towards a June 2022 season launch. !ART Foundation 2022 Approved 7/19/21 Income 2022 Budget Farmers Market-CenterPlace&Chamber CenterPlace Chamber EBT 0 0 Kernel/Kids 0 0 Fresh.Bucks 0 0 Vendors 11000 7500 Farmers Market Vendors Subtotal Food Trucks 1500 500 Donations 1000 Economic Grant 9000 22500 Lodging Grant 25000 0 SVFM Sponsorship 6500 3500 Farmers Market Revenue 54000 34000 SVFM Expenses Administrative 10%of gross 5400 3400 Advertising 3500 2500 Market music 1600 1500 Office Supplies 1100 2000 One Time Costs 2500 Rent 12000 0 Market Manager 24000 22500 Setup/down/training 3000 3000 Reserves/Matching Fund @ 10% 5400 0 SVFM Expenses 50600 37400 Net Revenue SVFM 3400 -3400 MKT Foundation 2022 Approved 9/1/21 2022 Budget Farmers Market=CenterPlace& Chamber Farmers Market Revenue 88000 SVFM Expenses 88000 Net Revenue SVFM 0 Crave-CenterPlace Crave Revenue 186200 Crave Expenses 165050 MKT Donation fund/Buffer 21150 Net Revenue Crave 0 Brews Beats&Eats-CenterPlace JAKT Support 2500 BBE Revenue 31000 BBE Expenses 32825 Net Revenue BBE 675 Beer Festival August-CenterPlace JAKT Support 2500 Festival Revenue 35000 Festival Expenses 37825 Net Revenue BBE -325 VIII. ATTACHMENTS 1. Copy of 501(c)(3) exempt status—attached. 2. Copy of most recent approved and proposed budget (above) 3. Copy of meeting minutes showing official approval of project and authorization of application of a signed resolution of the board of directors authorizing the application—attached. 4. List of members of the organization's board of directors and principal staff. a. Adam Hegsted —President b. Karen Stebbins—Vice President c. Jennifer Hegsted—Secretary d. Thomas Stebbins—Treasurer e. Katy Lee—Market Manager 5. List co-sponsors, if any, by title and type. Lance Beck, CEO of the Greater Spokane Valley Chamber of Commerce. Certification The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in the Grant application and will comply with all provisions thereof. Certified By: Thomas W. Stebbins Treasurer,JAKT Foundation September 30, 2021 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: S E P l 2017 81-5319087 DLN: 17053087331017 JAKT FOUNDATION Contact Person: ID# 31614 C/O THE LEVY LAW FIRM PLLC JEFFREY GAUNCE 421 W RIVERSIDE STE 381 Contact Telephone Number: SPOKANE, WA 99201 (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 509(a)(2) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 10, 2017 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 5O1(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c)(3) are further classified as either uder theC pulic n cctio private listedoatdtheotop of thisns. We rletteryou`re a public charity If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt • organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities. which describes your recordkeeping, reporting, and disclosure requirements, Letter 947 4 - -2- JAKT FOUNDATION Sincerely, Director, Exempt Organizations Rulings and Agreements Letter 947 MINUTES OF JULY 19, 2021 MEETING OF BOARD OF DIRECTORS AND OFFICERS OF JAKT FOUNDATION The Board of Directors of JAKT Foundation(the"Company") met as follows: 1. Date: July 19, 2021. 2. Time: 2pm. 3. Place:Newman Lake, Washington. 4. Present: Adam Hegsted, Jennifer Hegsted,Thomas Stebbins, and Karen Stebbins. 5. Presiding Officer: Adam Hegsted. 6. Acting Secretary: Karen Stebbins. A. Waiver of Notice. The undersigned, by execution of these minutes, hereby waives all requirements as to formal notice of the time, place, and object of this meeting and consents to all action taken at this meeting or any adjournment thereof. B. New Farmers Market in Spokane Valley. The Presiding Officer described a new project proposed by JAKT director,Katy Lee, regarding producing a new farmers market in collaboration with the Spokane Valley Chamber of Commerce. Similar to the current farmers market at CenterPlace the new market will occur on the Sprague corridor on Monday or Tuesday late afternoon. The board, upon a brief discussion, unanimously approved pursuing this event. C. Officers. The following officers were unanimously approved following a motion and a vote: Adam Hegsted—President Karen Stebbins—Secretary Jennifer Hegsted—Member Tom Stebbins—Treasurer D. Directors. A motion was made and seconded and the following resolution was unanimously adopted: RECONFIRMED RESOLUTION, Thomas Stebbins has the full authority from the JAKT Board to pursue a lodging grant from Spokane Valley, an economic development grant from Spokane Valley, Spokane TPA or any potential government or municipal support possible for any and all JAKT events. Minutes—.[AK"['Foundation There being no further business to come before the meeting, the meeting was adjourned. Karen Stebbins, Secretary APPROyED: Adam Hegsted, President J ifer 1 sted, Pres' a T-minas Stebbi s, President Minutes—MKT Foundation CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES r� PROJECT APPLICATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Title: JAKT Event Fund for Spokane Valley Type of Project: Spokane Valley Events Applicant: JAKT Foundation by Tom Stebbins Phone: (509)621-0125 E-mail: tomPiaktfoundation.org Address: PO Box 85 City: Newman Lake State WA Zip 99025 Applicants are: Non-profit Yes,JAKT Foundation Amount requested: $400,000 Applicant's match: $100,000 Total project budget: $500,000 Is this a new or continuing activity?Varies Will there be an admission charge for this activity?Will Vary If so, how much? n/a II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The JAKT Foundation was founded in 2017 to support events such as Crave and now a Spokane Valley Farmers Market. Expanding to encourage and develop community events monthly/weekly will create Spokane Valley lodging "stickiness" good for all. Vision: To create, celebrate, enrich, and expand our sense of community through events. Mission: Be the catalyst to build collaborations for the betterment of community. Core Values: * Build Community * Collaborate * Highlight chefs * Partner of Spokane Valley* Catalyst for community alliances * Passion for food and cultural events * Inclusionary, everyone benefits * Culinary leadership locally, regionally& nationally !I. PROJECT SUMMARY JAKT Foundation will specifically answer the request of Spokane Valley City Council as noted in Section VI., item 1 "Council desires to direct awards toward funding new and innovative projects, activities,events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing i. JAKT and Valleyfest will utilize their existing knowledge base and bring in additional partners and promoters to build Spokane Valley as a destination and something going on and reason to stay right in the Valley." JAI<T Foundation desires to execute and follow our vision and mission statement by creating a bold new concept that follows the Washington RCW laws and builds an economic effort focused on attracting and keeping lodging visitors in Spokane Valley. JAKT in partnership with Valleyfest will form a "shark tank" for review and partnership within their structures with sharks being;JAKT(1),Valleyfest (1), Lodging(1) and regional sponsors(5 is goal) who bring$20,000 or more to the table to support to be identified events. New events from anyone with an idea will be encouraged to apply for up to $500,000 of funding. We anticipate this to be spread around to multiple promoters, non-profit events and anyone wanting to build community events to attract tourists to the city while building reasons for the Spokane Valley community to take notice and recreate right here, IV. SCOPE OF WORK Fully describe the project. Expand on your Project Summary to address such issues as: a. What it is you wish to do? Maximize Spokane Valley event assets and build Spokane Valley as the center for community events in the region. b. How and why the community will benefit? Community pride and knowledge of something going on right in the Spokane Valley will generate pride and build perception in the greater Spokane region. c. What are the beginning and ending dates of your project? 2022—monthly events with weekly as possible relative to time of the year. d. Is it a seasonal activity appropriate to its location?Yes, our events will primarily be at CenterPlace given the infrastructure that exists and focus of the City of Spokane Valley to be the event location. We will also utilize Spokane Valley Parks and other venues within Spokane Valley to complete this schedule. e. If an outdoor activity, are there any weather-related constraints?Anytime an event is outdoors it can be impacted by wind, snow/rain, heat/cold but within scheduling as much as possible we will spread events throughout the calendar to not double up and minimize weather concerns. f. What measures you will apply to evaluate its success? Hotels will have a "local" amenity to direct guests too on a regular basis. Another fun thing in Spokane Valley to do on weekends and reinforce returning to a Spokane Valley lodging property. 1. Combine the objective results shared in our wrap up report to Spokane Valley City Council and administration subjective perceptions for final results and return on investment of these valuable funds. V. IMPACT ON TOURISM Projected(expected to participate) Total Overall Attendance 2022 150,000 Attendees who traveled 50 miles or more to attend Total (estimate) 5000 Of total, attendees who traveled from another state or country 3500 Attendees who stayed overnight Paid Accommodations 500 Unpaid Accommodations 1000 Paid Lodging Nights 500 Provide a description of the methods used in making the above estimations: 1. Direct Count—We will secure a count from participating lodging properties and note within our wrap up report exact totals reported. 2. Indirect Count—will not be used. 3. Representative Survey—will not be used. 4. Informal Survey—will not be used. 5. Structured estimate—will be used and will be copy of the Spokane Public Facility District/Spokane Sports Commission formula of estimating room nights at 10%of attendance. Description of the methods that will be used to determine actual attendance 1. Each event will be expected to provide a recap following a template to match requirements of the RCW and City of Spokane. VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN APPLICATION Council Goals and Priorities for Use of the Initial 2% Lodging Tax 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing i. JAKT and Valleyfest will utilize their existing knowledge base and bring in additional partners and promoters to build Spokane Valley as a destination and something going on and reason to stay right in the Valley. b. The marketing and operations of special events and festivals i. Funds will be used in marketing and operations of Spokane Valley events. c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district. i. JAKT and other events will rent facilities within the Spokane Valley. d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non- profit organizations. N/A 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City(recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. N/A 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. a. JAKT(Crave, Spokane Valley Farmers Market and possible other TBD events),Valleyfest(Valleyfest, Bike Celebration, and possible other TBD events)will be funded within this formula at requested level with balance being applied to new events. Events add amenities for tourism and the greater community that is part of any vibrant community. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District.JAKT and Valleyfest applied for Economic Development funding and for Lodging Tax support but this is simply an option with a larger upside and vision while building upon existing Spokane Valley events. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. Acknowledged VII. PROJECT BUDGET GRANT AMOUNT ENTITY CATEGORY RECEIVED MATCH TOTAL To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $ 400,000 $ 100,000 $ 500,000 3. Non-municipal entities for operations of tourism-related facilities owned by non- profit organizations $ $ $ JAKT Foundation 2022 Approved 9/1/21 2022 Budget Big Idea Budget Spokane Valley Lodging Tax 400000 Matching Sponsors @ 20% 100000 100000 Net Revenue 500000 Big Idea Expenses Grants Match Grant Administration/Reports 10% 50000 5000 Farmers Market 25000 Farmers Market Sponsors 5000 Crave 35000 Crave Sponsors 7000 Brews Beats Eats 10000 Brews Beats Eats Sponsors 2000 Beer Festival 15000 Beer Festival Sponsors 3000 TBD Events New 80000 16000 New Cultural 75000 15000 Existing 210000 47000 Total Expense/Match 500000 100000 VIII. ATTACHMENTS 1. Copy of 501(c)(3) exempt status—attached. 2. Copy of most recent approved and proposed budget (above) 3. Copy of meeting minutes showing official approval of project and authorization of application of a signed resolution of the board of directors authorizing the application—attached. 4. List of members of the organization's board of directors and principal staff. a. Adam Hegsted--President b. Karen Stebbins—Vice President c. Jennifer Hegsted—Secretary d. Thomas Stebbins—Treasurer e. Katy Lee—Market Manager Certification The applicant here certifies and affirms: 1. That it will abide by all relevant local,state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in the Grant application and will comply with all provisions thereof. l • /1 Certified By: . op/ Thomas W. Stebbins Treasurer,JAKT Foundation September 30, 2021 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: S E P l { Z0l7 81-5319087 DLN: 17053087331017 JAKT FOUNDATION Contact Person: ID# 31614 C/O THE LEVY LAW FIRM PLLC Contact TelephoneNumber: 421 W RIVERSIDE STE 381 o8tac 829-5500T SPOKANE. WA 99201 Accounting Period Ending: December 31 Public Charity Status: 509(a)(2) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: • February 10, 2017 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2oear2 This letter help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N. the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked, If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization. go to ww.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping, reporting. and disclosure requirements. Letter 947 1 ' I -2- JAKT FOUNDATION Sincerely, 4444 �vU.,.._;,yam Director, Exempt Organizations Rulings and Agreements Letter 947 MINUTES OF SEPTEMBER 1, 2021 MEETING OF BOARD OF DIRECTORS AND OFFICERS OF JAKT FOUNDATION The Board of Directors of JAKT Foundation(the"Company")met as follows: 1. Date: September I,2021. 2. Time: 4pm. 3. Place: Newman Lake, Washington. 4. Present: Adam Hegsted, Jennifer Hegsted, Thomas Stebbins,and Karen Stebbins. 5. Presiding Officer: Adam Hegsted. 6. Acting Secretary: Karen Stebbins. A. Waiver of Notice. The undersigned, by execution of these minutes,hereby waives all requirements as to formal notice of the time, place, and object of this meeting and consents to all action taken at this meeting or any adjournment thereof, B. Confirmed July 19, 2021 minutes& actions. C. New Projects: Approved the following projects and budget for each. 1.Brews,Beat&Eats—adjusted to leverage the opening Spokane Valley Farmers Market with infrastructure(tent) and opening food truck night to be followed on Saturday by the all ages event. 2.A To Be Named Craft Beer event to be held in early August with 15+craft breweries with music for those over 21 event. 3. Approved treasurer, Tom Stebbins,to start the effort of building an overall event budget and "event shark tank"to encourage more events representing the culture and diversity of the Spokane Valley region. Minutes—JAKT Foundation C. Officers. The following officers were unanimously approved following a motion and a vote: Adam Hegsted—President Karen Stebbins— Secretary Jennifer Hegsted—Member Torn Stebbins—Treasurer There being no further business to come before the meeting, the meeting was adjourned. iVIQA61-\, Karen Stebbins, Secretary APPRO\I D: Adam Hegsted, President J fifer i sted, Pres` e t T somas Stebbu s, President Minutes—MKT Foundation 9/30/2021 WFS/LAWN PLAZA k pr- JAKT � - _ f n„,„ .- 2022L-adStiteTnx j —1 r� 1••1M�• 1'7 L( 1 JF4Emcn. F`1l1F..F I;IC? ' ' ° ^• .• . I .!, 4 lie . ''' I' "1.C., -'1 11' vs sre y.. to kit.. it �, `: t st The 1t Evewt 3 1 9/30/2021 Next step forJAK.T ®ur r. I44.I.ss[.0101..., MEssLow; 'se tie ` 3 4k catalustto build '' °f collaborations for .. _ I_ - the betterment of r: couuuni.tu. The ',l r .rt parts,together, I ``— creates wore. . — J. I -. ,�'I 4 ,i' .r . '4' *10, L tl W t•. . , ' , owe step bade...awd owe s� ,'� 'Els C.— r eta wtstep forwara 5 1 `r f o l iI' ti• 6 2 9/30/2021 S in a rie t t for evewts... . .P._ + Nik • Exist£wg r r:.:, 1 • Cultural 4 , ' • xecruit Coninttotttb eVewts to stove lcoateaw—Spal¢ant + '4 -�..— wilco wal,t1 kjoul s I. 4 ryl 7 E �4gpl.A ' .`'��,4dF. •.1 d.Cz.N7 f © G WEST LAWN PLAZA R i Q L 1 � 'fit r I 7F1� r,t rs i.i' 7 r� .,�lil�«�i,��. ill ,, ,:. 8 I 9 3 9/30/2021 ', : -� J • ,..Nt, .460,br- •Mil'—.1 .orr,4 , -•j :10..xi.ie.. , . . AL ......,q6,41 1 r ,. , , _.. { 1.r . - �. f 10 Cra f Srewrfest 21+ evewt 1-5+ breweries Live music Food bkj Lt CaterLI.g j1 .S — w •r • together,we are bpdtoti.wg a strowger $41Ethe - - eowow.uwit awd Atth6 CQYLLWIAIwLtid assets! —fide! .. , !~ T I 12 4 CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES INSTRUCTIONS: All sections must be answered in their entirety for this application to be considered complete. Additional pages that are attached to the application must be labeled with the section number and section title. I. PROJECT APPLICATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Title: Northwest Winterfest Type of Project: Holiday, Cultural, and Arts Festival Applicant: Sam Song Phone: 509-280-2739 E-mail samsong44©hotmail.com Address: 3328 E 24th City: Spokane State WA Zip 99223 Applicants are: Non-profit X Public/Municipal Agency Must be a non-profit 501(c)(3) or 501(c)(6) or a public agency to be considered for funding. Contact Person (if different than applicant): Mary Kae Repp Phone: 509-995-7700 E-mail mk@genesiscreatescolor.com Address 2703 N Pittsburg St City Spokane _ State WA _Zip 99207 Amount requested: $45,000 Applicant's match: $150,000 Total project budget: $1,063,612 Is this a new or continuing activity? Continuing Will there be an admission charge for this activity? ell) No If so, how much?,$1 9.99 City of Spokane Valley Request for 2022 Grant Page 4 of 8 II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The event was brought back to life again in 2020, in a limited capacity at the Mirabeau Park Hotel and Convention Center. The plan for Northwest Winterfest is to be an annual event in Spokane Valley. We are hosting the Spokane Valley event in 2021 at the Spokane Fair and Expo Center and the second location event in Kennewick in 2022 at the Benton County Fairgrounds. It has been inspired by the cultural activities facilitated by the 2015 Washington State Chinese Lantern Festival, which generated a total economic impact of $4.67 million for the region, as well as the two cultural events held in 2018 and 2019 hosted by the Family Guide. Beginning in 2017, the Northwest Winterfest team began development to create the flagship event to become the premier annual winter festival in our region. Our mission is to create passion in cross cultural understanding and appreciation in the global community. The key values are RESPECT, PASSION, WIN-WIN, CREATIVITY AND INTEGRITY. Northwest Winterfest will be featuring life size lights displays in the form of traditional Chinese Lanterns, lantern Christmas trees hand painted by local artists, art, food and entertainment, culture and education, all happening during the holiday season. III. PROJECT SUMMARY Provide a concise summary of your request and what it will accomplish. If your request is part of a larger project, you may briefly describe the over-all project. However, please focus the bulk of your answer on the specific element for which you are requesting funding. The marketing and promotion of Northwest Winterfest is being coordinated and enthusiastically supported by Avista, Visit Spokane, Spokane Arts, Mirabeau Park Hotel, City of Spokane Valley, the Spokane Tribe of Indians, the Kalispel Tribe of Indians, Visit Tri-Cities, regional libraries, regional school districts, and 20+ cultural organizations in the region. The impact of Northwest Winterfest on tourism to the City of Spokane Valley and our region will be long-term oriented as it is an annual event and has a successful track record by its creators. The funding we request will be used to help all aspects of the events, including but not limited to capital purchases, event operations, marketing, and promotions. IV. SCOPE OF WORK Fully describe the project. In addition, give a brief history of the event or organization. Expand on your Project Summary to address such issues as: a. What it is you wish to do? The 2022 Northwest Winterfest features the - Winter Wonderland of handcrafted, life-size "Holiday Themed" LED lighted lanterns. - Northwest Winterfest Cultural Celebration. - Display of hand-painted Christmas Trees. City of Spokane Valley Request for 2022 Grant Page 5 of 8 b. How and why the community will benefit? Northwest Winterfest provides an opportunity for the Hispanic, Asian, African American, Native American, Middle Eastern and the Caucasian Community to come together in unity for a cross cultural exchange by celebrating our beloved holiday traditions. Northwest Winterfest will add to the identity of the City of Spokane Valley as being a unique, family friendly and culturally diverse community. Spokane Valley will benefit because hosting a large, annual event will attract tourist from not just Spokane but other states and major cities. Increased tourism will benefit the hospitality and restaurant industries during the holiday season. Tourist will be able to experience all that the Spokane Valley area has to offer and will be encouraged to return during different parts of the year. As our event plans to be held annually, as we grow, we will be able to reach more people and increase tourism in the area each year. c. What are the beginning and ending dates of your project? Beginning: November 25, 2022 End: January 1, 2023 d. Is it a seasonal activity appropriate to its location? Yes, all displays and branding will be winter and holiday-related. There will also be an emphasis on the many cultures that make up the Greater Spokane Region. e. If an outdoor activity, are there any weather-related constraints? The festival is designed and planned to withstand the typical winter weather in our region. We have plans to assess the weather daily and remove any snow and ice. We plan to make sure that the event is accessible to all people. f. What measures will you apply to evaluate its success? 1. Attendance. 2. Economic impact to the City of Spokane Valley and Spokane County. 3. Reviews by participants on social media platforms. 4. Media coverage. 5. Hotel room nights. 6. Cultural awareness. 7. Volunteer hours & participation. If you are requesting funds for a specific portion of a larger project, please so state but focus your response on the element for which you are requesting grant assistance. You may use additional pages as necessary. Attachments to this section should be labeled "IV. Scope of Work." City of Spokane Valley Request for 2022 Grant Page 6 of 8 V. IMPACT ON TOURISM "Tourism," as defined in RCW 67.28.080(5), means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. A practical measure of tourism is the number of visitors that are attracted to the area. Provide an estimated or "projected" number of visitors who are expected to be attracted by the proposal in the following categories: Projected(expected to participate) Total Overall Attendance 57,000 Attendees who traveled 50 miles or more to attend Total 13,000 Of total, attendees who traveled from another state or country I 1,400 1 , Attendees who stayed overnight Paid Accommodations N/A Unpaid Accommodations 1,700 Paid Lodging Nights* 4,100 *one lodging night=one or more persons occupying one room for one night Provide a description of the methods used in making the above estimations as well as a description of the methods that will be used to determine actual attendance and distinguish among the visitor categories (methods include a head count, car count, survey, or other with explanation). Attachments to this section should be labeled "V. Impact on Tourism." Estimations Method: We used the Lodging Tax Report: 2018 Lodging Tax Expenditures Update compiled by Joint Legislative Audit & Review Committee (JLARC) as the main tool to estimate "Attendees who traveled 50 miles or more to attend", "Attendees who stayed overnight" and "Paid Hotel Nights". Rather than using data from the whole state, we used the interactive dashboard data only from Spokane and Spokane Valley. Based on the total from 2014 to 2018, we used the percentage of each category to the total attendees to generate the estimates. Interactive dashboard can be found from the link below: https:llpublic.tableau.comlprofileljlarc#llvizhome/LodgingTaxMunicipalSummary/MunicipalSummary 2 Actual attendance will be obtained by the ticket sales, ticket giveaways and complimentary access for the underserved or special guests; we will work with local tourism agencies and ticketing agency to identify attendees from over 50 miles radius; we work with the hotels and Visit Spokane to track paid hotel nights. City of Spokane Valley Request for 2022 Grant Page 7 of 8 Spending Habits of Tourists • 83% of families will splurge on their travel destination when planning a vacation, 68% on paid attractions, 68% on staying close to their destination, 63% on eating out/food and 63% on the length of their trip (NYU) • 26% of American domestic travel expenses go towards food services, 20% towards public transportation, 20% towards lodging, 17% towards auto transportation, 10% towards recreation/amusement and 7% towards retail (US Travel Association) • Travelers who book their activities ahead of their trip spend 47% more on lodging than those who wait to book (Booking.com) • Lodging costs are about 26% of total travel expenditures for domestic trips, and 21% for international trips (Value Penguin) • On average, excluding airfare, 30% travelers aged 55-64 spend $1500-$2500 on a one- week trip (Solo Traveler) • 37% of travelers are very likely to splurge on food and drink experiences (WYSE Travel Confederation) • 27% of travelers are likely to spend more on events or festivals (WYSE Travel Confederation) Source: https:l/bloq.accessdevelopment.comltourism-and-travel-statistics-the-ultimate-collection City of Spokane Valley Request for 2022 Grant Page 8 of 8 Applicants may find more information on the Joint Legislative Audit and Review Committee's guidelines under "Data Collection- How to report lodging tax expenditures" at http://leg.wa.gov/j larc/Pages/default.aspx Information requested in this section is required to be included at the time the application is submitted per RCW 67.28, as amended by Engrossed Substitute House Bill 1253 in 2013. If estimates are not given for all items listed in this section, then the application will be considered incomplete and will not be advanced to the Lodging Tax Advisory Committee for funding consideration. VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BEADDRESSED IN YOUR APPLICATION The Spokane Valley City Council will make the final award of lodging tax revenues to candidates based upon the recommendations of the LTAC. The City Council has established goals and priorities for using lodging tax revenues to benefit tourism within Spokane Valley. In addition to the evaluation criteria outlined in the other sections of this application, the LTAC desires to understand how the applicant's proposal and project would meet the City Council goals and priorities. Please explain how the proposal meets City Council goals and priorities, listed below.Attachments to this section should be labeled "VII. Consideration of City Council Goals and Priorities" Recognizing the Council's desire to fund innovative events, Northwest Winterfest is inspired by the diversities of cultures, the richness of arts, hospitalities of our region and the success of Washington State Chinese Lantern Festival which attracted 80,000 attendees in 2015 and generated an economic impact of$4.6 Million to the local economy. Based on the 2015 attendance report, and the overwhelmingly positive responses from this year's preliminary marketing campaign, we are anticipating an attendance of 57,500 in 2022. We are also encouraged and motivated by the overwhelmingly positive feedback from people we have shared the idea with, from the City of Spokane Valley Council, Parks Department, to local businesses like Mirabeau Park Hotel, AVISTA, the Spokane Tribe of Indians, the Kalispel Tribe of Indians, Spokane Arts, Visit Spokane, Spokane Folklore Society, to community groups and individuals. We have a vision that this will come into fruition with the generous support of all of them. The funding we request will help us continue this unique event combining arts, culture, lighted life-size lanterns, holiday celebrations, food and beverages over the holidays, therefore perfectly fitting the goal and priorities of the lodging tax, as stated in the application "Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism." Northwest Winterfest is well positioned to grow into an annual premier holiday event that is based in Spokane Valley, attracting guests from near and far. The event will be marketed throughout the Pacific Northwest. It will distinguish Spokane Valley as the most popular holiday destination in our region. City of Spokane Valley Request for 2022 Grant Page 9 of 8 Council Goals and Priorities for Use of the Initial 2% Lodging Tax In August 2013 Council for the first time adopted goals and priorities that it encouraged the LTAC to consider when making award recommendations. Based upon subsequent discussions betweenCouncil and Staff in the years of 2014 through 2021, these have evolved as follows: 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result inincreases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes forthe purposes allowed in State law, which include: a. Tourism marketing b. The marketing and operations of special events and festivals c. The operation and capital expenditures of tourism related facilities owned or operated bya municipality or public facility district d. The operation (but not capital expenditures) of tourism related facilities owned oroperated by non-profit organizations. 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City (recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocatinga majority of lodging taxes toward this purpose. 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into considerationto a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. 4. Council will take into consideration revenues derived from lodging sources within SpokaneValley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. 5. An award to any particular applicant cannot be greater than the dollar amount requested inthat applicant's application. City of Spokane Valley Request for 2022 Grant Page 10 of Vii. PROJECT BUDGET Please detail the budget for your project. In addition to completing the chart below, you must also submit your general operating budget, or fund-level budget for public agencies, PROJECT BUDGET SHEET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL - I To be filled out by Public/Municipal Agencies: 1, Municipality tourism marketing $ $ $ 2. Municipality event and festivals $ $ $ 3. Municipality facilities(operations and capital) $ $ $ To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $45,000 $150,000 $195,000 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS $45,000 $150,000 $195,000 *While matching funds are not required, the amount of additional funds an organization brings to an event is a good measure of that organization's commitment to success and the broad-base support for the project. City of Spokane Valley Request for 2022 Grant Page 11 of VIII. ATTACHMENTS Please provide the following information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level. 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 6. List co-sponsors, if any, by title and type. CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) (print or type name) Ma K e Title: Marketing Director Date: September 30, 2021 City of Spokane Valley Request for 2022 Grant Page 12 of INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Date: A l G D 9 2017 Employer Identification Number: 82-2326334 DLN: 26053615002577 WOW CHINA Contact Person: 3328 EAST 24TH AVE CUSTOMER SERVICE ID# 31954 SPOKANE, WA 99223-0000 Contact Telephone Number: (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 509(a) (2) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: August 1, 2017 T Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you' re exempt from federal income tax under Internal Revenue Code (IRC) Section 501 (c) (3) . Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c) (3) are further classified as either public charities or private foundations. We determined you' re a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard) . If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501 (c) (3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Letter 947 -2- WOW CHINA Sincerely, to Director, Exempt Organizations Rulings and Agreements Letter 947 Northwest Winterfest Budget 2022 Revenue Grant and Sponsorhsip Spokane Kennewick Total Grant $ 75,000.00 $ 50,000.00 $ 125,000.00 Sponsorship $ 100,000.00 $ 75,000.00 $ 175,000.00 In-kind donation $ 30,000.00 $ 25,000.00 $ 55,000.00 Total $ 205,000.00 $ 150,000.00 $ 355,000.00 Tickets revenue Regular tickets $ 719,600.00 $719,600 $ 1,439,200.00 Family passes $ 9,998.00 $9,998 $ 19,996.00 Total $ 729,598.00 $729,598 $ 1,459,196.00 Parking Parking fees $35,000 $35,000 Total $35,000 $35,000 in-House Food and Merchandise Food $ 20,000.00 $ 10,000,00 $ 30,000.00 Total Grand Total $ 954,598.00 $ 924,598.00 $ 1,879,196.00 Expenditures Spokane Kennewick Tax $ - $ - Ticket fees $ - $ - Total Spokane Valley City Fees $ - $ 85,000.00 $ 85,000.00 Total $ 85,000.00 $ 85,000.00 $ - Chinese Partner Production material $ 156,250 $ 15,000.00 $ 171,250.00 Labor $ 256,000 $ 230,000.00 $ 486,000.00 Transportation Int'l $ 125,000 $ 125,000.00 Airfare/Visa for staff/Food $ 45,000 $ 15,000.00 $ 60,000.00 Insurance $ 5,000 $ 5,000.00 $ 10,000.00 Artistic design $ - Total $ 587,250 $ 265,000 $ 852,250.00 $ - Customs and Transportation $ - Customs $ 24,000.00 $ 24,000.00 Seattle to Spokane Valley $ 15,000.00 $ 12,600.00 $ 27,600.00 Potential tarrifs $ 25,000.00 $ 25,000.00 Storage $ 16,000.00 $ 16,000.00 $ 32,000.00 Total $ 80,000.00 $ 28,600.00 $ 108,600.00 $ - Marketing $ - Targeted marketing $ 78,000.00 $ 60,000.00 $ 138,000.00 Branding $ 1,000.00 $ 1,000.00 Total $ 79,000.00 $ 60,000.00 $ 139,000.00 $ - COGS $ - Food $ 8,000.00 $ 4,000.00 $ 12,000.00 $ - Total $ 8,000.00 $ 4,000.00 $ 12,000.00 $ - Event $ - Installation/Take down $ 50,000.00 $ 40,000.00 $ 90,000.00 Crane and equpment rental $ 6,000.00 $ 6,000.00 $ 12,000.00 Power $ 12,000.00 $ 12,000.00 $ 24,000.00 staff $ 75,000.00 $ 75,000.00 $ 150,000.00 Parking $ 2,000.00 $ 16,520.00 $ 18,520.00 Ticketing staff $ 6,742.00 $ 6,742.00 $ 13,484.00 Cleaning $ 4,620.00 $ 4,620.00 $ 9,240.00 Stage&Sound $ 8,000.00 $ 4,000.00 $ 12,000.00 Porta Potty $ 2,500.00 $ 2,500.00 $ 5,000.00 Heating $ 2,000.00 $ 1,000.00 $ 3,000.00 Fencing $ 4,000.00 $ 3,000.00 $ 7,000.00 Security $ 35,000.00 $ 35,000.00 $ 70,000.00 Insurance $ 7,500.00 $ 7,500.00 $ 15,000.00 Waste $ 3,500.00 $ 3,500.00 $ 7,000.00 Performers $ 8,000.00 $ 8,000.00 Site restoration $ 15,030.00 $ 15,000.00 Tents, table, chairs rental $ - Total Uniform and others $ 2,000.00 $ 2,000.00 $ 4,000.00 Event planning $ 7,500.00 $ 7,500.00 $ 15,000.00 Misc. $ 38,000.00 $ 38,000.00 $ 76,000.00 Total $ 274,362.00 $ 279,882.00 $ 554,244.00 Sales Tax $ 35,000.00 $ 30,000.00 $ 65,000.00 $ 1,063,612.00 $ 752,482.00 $ 1,816,094.00 Grand Total $ - Net profits/loss $ (109,014.00) $ 172,116.00 $ 63,102.00 wfwestfa_ Planning Committee Meeting Date: September 29, 2021 Time: 3pm 1. City of Spokane Valley, WA 2022 Lodging Tax Grant Application - Grant is requesting funds for Northwest Winterfest to increase tourism and lodging in Spokane Valley and the greater Spokane region. - Final revisions have been made and all board members have reviewed and approved the application. 00tvgatt 9G Northwest Winterfest Board of Directors: Lee Cameron: Co-chair Owner- Mirabeau Park Hotel Sam Song: Co-Chair Owner- Kumon Math & Reading Center of Spokane Charity Doyl: Co-chair Executive Director-The Family Guide Mary Kae Repp: Marketing Director Owner-Genesis Marketing Scott Steele Marketing& Communications-Avista CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES INSTRUCTIONS: All sections must be answered in their entirety for this application to be considered complete. Additional pages that are attached to the application must be labeled with the section number and section title. I. PROJECT APPLICATION DEADLINE: October 1. 2021 before 4:00 o.m. Project Title: Marketing Spokane County Interstate Fair and Interim Events Type of Project: Marketing Applicant: Spokane County Fair & Expo Center- Erin Gurtel Phone: 509-477-2785 E-mail equrtel(c�spokanecounty.orq Address: 404 N Havana, Ste 1 City: Spokane Valley State WA Zip 99202 Applicants are: Non-profit Public/Municipal Agency X Must be a non-profit 501(c)(3) or,01(c)(6) or a public agency to be considered for funding. Contact Person (if different than applicant): Rachelle Buchanan Phone: 509-477-2784 E-mail rbuchanan(a�spokanecounty.org Address 404 N Havana, Ste 1 City Spokane Valley State WA Zip 99202 Amount requested: $75,000.00 Applicant's match: $35,000.00 Total project budget: Is this a new or continuing activity? Continuing Will there be an admission charge for this activity? Yes X No If so, how much? Adults: $13, Youth/Senior $10, Kids 6 and under no charge City of Spokane Valley Request for 2022 Grant Page 4 of II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? The Spokane County Fair & Expo Center host over 100 events a year, including the 10- day Spokane County Interstate Fair. The Spokane County Fair & Expo Center host close to 500,000 guests annually, including nearly 200,000 (2019 attendance) attending the Spokane County Interstate Fair. The Fair & Expo Center 97-acre facility continues to change to meet the growing need of the community and economy. This facility has grown from the site of the annual for to a year-round facility hosting local, regional, national and international events and conferences. Mission Statement As one of Spokane's largest annual events, the Interstate Fair strives to be a place where one can visit the past, explore the future, and enjoy the wonders of the present in a single location by: • Promoting public education related to our agricultural heritage; • Serving as a showcase of the talents of our community by providing a means of education, exhibit, and competition; • Promoting family-oriented entertainment and activities; • Providing superior customer service and an enjoyable experience; • Recognizing the vast cultural diversity of our participants and visitors; • Providing commercial opportunities that showcase information and new products related to agriculture, outdoor living, and other local interests; • Being innovative and creative in planning and growth in a secure and fiscally responsible way; and • Providing a safe and friendly environment. III. PROJECT SUMMARY Provide a concise summary of your request and what it will accomplish. If your request is part of a larger project, you may briefly describe the over-all project. However, please focus the bulk of your answer on the specific element for which you are requesting funding. To market and advertise the Spokane County Interstate Fair and Interim Events to our local audience in the Spokane area and beyond. We want to build on bringing in attendees that will reserve hotel/motel room nights and grow the consumers experience in Spokane Valley with shopping, dining, fuel, etc., in conjunction with attending the 2022 Spokane County Interstate Fair and Interim Events held at the Spokane County Fair & Expo Center. The Spokane County Interstate Fair will continue to enhance the Fair overall as we strive to add new activities, exciting grandstand entertainment, educational displays and free entertainment throughout the grounds. This adding to the attendee's positive experience in attending the Spokane County Interstate Fair. While we are learning to navigate the ever changing circumstances that Covid is bringing to the event industry, we were able to host the 2021 Spokane County Interstate Fair. We missed some our community favorites that were not able to join us due to Covid but we did enjoy the following, including some new and exciting entertainment: City of Spokane Valley Request for 2022 Grant Page 5 of • Winterfest Stage, featuring a variety of multi-cultural entertainment • The All-Alaskan Racing Pigs • Canine Stars, featured on America's Got Talent • North Stage with 10-days of local and regional entertainment • Critter Country • 10-Days of local Car Clubs showing off their prized vehicles • Bites and Beats stage featuring the June Bugs • Daily Entertainment in the main beer garden featuring local musicians • Roving entertainment including the Red Hot Mamas and the Animal Crackers • 7 Days of Grandstand Entertainment- Rodeo, Concerts, Truck & Tractor Pulls, and Demolition Derbies To accomplish this, we will continue to increase our advertising efforts to reach areas in Western Montana, Idaho, Canada, Eastern Oregon, and canvas the entire state of Washington. Advertising mediums used will include; social media, radio, television, and print. With the increase in the use of social media we have enhanced our marketing plan to target our advertising to those on social media. This is in addition to TV, Radio, and print advertising. Additionally, we will continue to market our Interim Events throughout the year in regional tourism publications and other media outlets. Some of our larger Interim Events include: The Big Horn Show in March, with over 30,000 attendees in 4-days, The Speed and Custom Show in April with over 10,000 attendees in 3-days, The Farm Chicks in June with over 10,000 attendees in 2-days and the Goodguys Rod & Custom Show in August with over 15,000 attendees in 3-days (based on 2019 attendance). We continue to work with and invite City of Spokane Valley lodging properties to partner with the Interstate Fair. We include our hotel partners on both of our web sites, year-round www.fairandexpo.orq, www.thespokanefair.com and www.interstatefair.orq Through our increased marketing efforts and community partnerships we will see more visitors to the City of Spokane Valley attending the Spokane County Interstate Fair. This, increasing the number of tourists attending the Interstate Fair and the number of room nights reserved in the community. Out of town visitors and attendees will also buy gas, eat at area restaurants, and buy goods and services. IV. SCOPE OF WORK Fully describe the project. In addition, give a brief history of the event or organization. Expand on your Project Summary to address such issues as: a. What it is you wish to do? Continue to enhance the Spokane County Interstate Fair attractions, educational exhibits, and the entertainment acts in the grandstand arena at the 2022 Spokane County Interstate Fair and increase advertising efforts to reach audiences outside the Spokane area. b. How and why the community will benefit? The community will benefit by having an exciting, educational and agriculturally based event to attend. The Fair will continue to bring more overnight hotel/motel stays to the community along with attendees purchasing gas, food, shopping, etc. during the Fair, September 9-18, 2022 in addition to the days prior to the Fair opening and days after the Fair closes. Please note the below numbers are based on 2019 numbers. City of Spokane Valley Request for 2022 Grant Page 6 of • Over 250 vendors participated in the 10-day Fair, many not residing locally, generating over 1,000 room nights • Over 2,000 animals were exhibited at the 2019 Fair, this brining individuals and families to show their animals for serval days at the Fair. For many this requires camping or hotel stays, buying food, supplies for animals, fuel, etc. c. What are the beginning and ending dates of your project? January 2022-October 2022. d. Is it a seasonal activity appropriate to its location? Yes e. If an outdoor activity, are there any weather-related constraints? Potentially there could be. f. What measures will you apply to evaluate its success? • Gate attendance/revenue for Interstate Fair • Entertainment revenue • Food revenue • Carnival revenue • Hotel/Motel revenues (number of nights reserved during Fair) • Number of lodging properties that partner/participate Interim Events: • Gate attendance/revenue for Interim Events • Hotel/Motel room nights If you are requesting funds for a specific portion of a larger project, please so state but focus your response on the element for which you are requesting grant assistance. You may use additional pages as necessary. Attachments to this section should be labeled "IV. Scope of Work." V. IMPACT ON TOURISM "Tourism," as defined in RCW 67.28.080(5), means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. A practical measure of tourism is the number of visitors that are attracted to the area. Provide an estimated or "projected" number of visitors who are expected to be attracted by the proposal in the following categories: Projected(expected to participate) Total Overall Attendance 200,000 I Attendees who traveled 50 miles or more to attend Total 18,000 Of total, attendees who traveled from another state or country 2,600 Attendees who stayed overnight City of Spokane Valley Request for 2022 Grant Page 7 of Paid Accommodations 3,800 Unpaid Accommodations 725 Paid Lodging Nights* Based on 2019 attendance 3,075 I *one lodging night=one or more persons occupying one room for one night Provide a description of the methods used in making the above estimations as well as a description of the methods that will be used to determine actual attendance and distinguish among the visitor categories (methods include a head count, car count, survey, or other with explanation). Attachments to this section should be labeled "V. Impact on Tourism." City of Spokane Valley Request for 2022 Grant Page 8 of Applicants may find more information on the Joint Legislative Audit and Review Committee's guidelines under "Data Collection- How to report lodging tax expenditures" at http://leg,wa.gov/jlarc/Pages/deiault.aspx . Information requested in this section is required to be included at the time the application is submitted per RCW 67.28, as amended by Engrossed Substitute House Bill 1253 in 2013. If estimates are not given for allitems listed in this section, then the application will be considered incomplete and will n L be advanced to the Lodging Tax Advisory Committee for funding consideration. VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN YOUR APPLICATION The Spokane Valley City Council will make the final award of lodging tax revenues to candidates based upon the recommendations of the LTAC. The City Council has established goals and priorities for using lodging tax revenues to benefit tourism within Spokane Valley. In addition to the evaluation criteria outlined in the other sections of this application, the LTAC desires to understand how the applicant's proposal and project would meet the City Council goals and priorities. Please explain how the proposal meets City Council goals and priorities, listed below. Attachments to this section should be labeled "VII. Consideration of City Council Goals and Priorities" Council Goals and Priorities for Use of the Initial 2% Lodging Tax In August 2013 Council for the first time adopted goals and priorities that it encouraged the LTAC to consider when making award recommendations. Based upon subsequent discussions between Council and Staff in the years of 2014 through 2021, these have evolved as follows: 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing b. The marketing and operations of special events and festivals c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City (recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. City of Spokane Valley Request for 2022 Grant Page 9 of VII. PROJECT BUDGET Please detail the budget for your project. In addition to completing the chart below, you must also submit your general operating budget, or fund-level budget for public agencies. PROJECT BUDGET SHEET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL To be filled out by Public/Municipal Agencies: 1. Municipality tourism marketing $ $ $ 2. Municipality event and festivals $ 75,000.00 $ 35,000.00 $ 110,000.00 3. Municipality facilities (operations and capital) $ $ $ To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $ $ 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS $ 75,000.00 $ 35,000.00 $ 110,000.00 *While matching funds are not required, the amount of additional funds an organization brings to an event is a good measure of that organization's commitment to success and the broad-base support for the project. City of Spokane Valley Request for 2022 Grant Page 10 of VIII. ATTACHMENTS Please provide the following information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level. 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 6. List co-sponsors, if any, by title and type. CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. L- --() Certified By: (signature) (print or type name) � 9-41 Title: _ Date: _ 9161,7 fri City of Spokane Valley Request for 2022 Grant Page 11 of Spokane County Interstate Fair Sponsors Organization Area of Sponsorship BECU Day Sponsor and Bites/Beats Stage Boot Barn Rodeo Butler Amusements Major Sponsor Columbia Bank Major Sponsor Comcast Supporting Sponsor Costco Supporting Sponsor Humana Senior Day Supporting Mattress Firm Major Sponsor McDonalds Rodeo Sponsor Motion Auto Car Show North 40 Rodeo Sponsor Odom Supporting Sponsor Pepsi Major Sponsor Spokane Tribe Supporting Sponsor TDS Major Sponsor Wheatland Bank Rodeo Sponsor Us Bank Parking Sponsor Ziggy's Admission Sponsor Spokane County► Fair and Expo Center Advisory Board Craig Opsal Clint Branz Wayne Brokaw Lee Cameron Jeff Sevigney Kary Gibbs Kiera Scriven (youth position) Fair and Expo Staff Erin Gurtel, Director Craig Crocker, Facilities Manager Rachelle Buchanan, Marketing and Sales Manager Jessica McLaughlin, Fair Coordinator William Johnston, Accounting Jason Hibbs, Maintenance Supervisor Gregg Knapp, Maintenance Cory Goltiani, Maintenance Mark Harris, Maintenance Heather Beavers, Staff Assistant Lily Montgomery, Receptionist LII:14 SPOKANE COUNTY aao4-1 404 N HAVANA SPOKANE WA 99202-4663 DETACH BEFORE POSTING . 4' x �f4 'iKT��n r =-7t ni"n`��Yfe- i.a�(�es ,i�["e`ML' i1+.'hrs'-5143Fiivm+$~e. 4:4:ii+nlCr-� . �d='La- ii�W a7S+'ax3t-11:ti1'tiL$2edfr :75,' -1 T, . .. BUSINESSLICENSE } � ..., , .. C :� rs� �° Issue Date: May 21, 2021 I', ' sTATNE T Unified Business ID#: 328040473 t WR$HINGTON Municipality Business ID#: 001 Location: 0015 SPOKANE COUNTY Expires: Sep 30, 2021 (t. SPOKANE COUNTY FAIR & EXPO CENTER ' 404 N HAVANA 01 SPOKANE, WA 99202-4690 • TAX REGISTRATION -ACTIVE (; CITY ENDORSEMENTS: POKANE VALLEY GENERAL BUSINESS - NON-RESIDENT#02398 -ACTIVE is `.e REGISTERED TRADE NAMES: i SPOKANE COUNTY FAIR & EXPO CENTER - f 4 S� 3 1 la k t a. I ". 4 ri 4 IP This document lists the registrations,endorsements,and licenses authorized for the business I named above.By accepting this document,the licensee certifies the information on the application 1 was complete,true,and accurate to the best of his or her knowledge,and that business will be conducted in compliance with all applicable Washington state,county,and city regulations. Director,Department of Revenue 0..ign41 s�i$f $F11-aL" 9Ya'�—`u - 7 Z.arir ., : _: r y,1u—:"';:' —, ,. x77..zuti.*..f.. �: a-" ,,. _, Y''?_t„ . ._ f7".:i' ' "' .V?,.=J4:. .. `7' .n,! .,} Spokane County Summit 3 Year Department Group Summary Actuals As Of 911812019 2:15:31 PM 407-Interstate Fair Dept Group: 150-Fair Budget Summary: 2019 YTD 2019 Suppl. 2020 Prel. Pre!.Bud I Revenue 2016 Actual 2017 Actual 2018 Actual 2019 Adopted 2019 Modified Actual Estimated Request Budget Adopted Charges for Goods/Services 1,394,397 1,527,234 1,696,317 1,474,621 1,474,621 857,534 0 0 1,589,400 107.8% Fines&Penalties 1,100 2,200 1,700 2,000 2,000 1,800 0 0 1,000 50.0% intergovernmental 108,746 106,921 110,090 60,000 120,000 56,896 0 0 56,896 94.8% Miscellaneous Revenue 3,042,123 3,104,651 3,146,665 3,282,289 3,282,289 2,356,226 0 0 3,205,297 97.7% Other Financing Sources 651,207 242,379 415,107 237,608 237,608 61,304 0 0 408,800 172.0% Proprietary Gains 0 0 80 0 0 0 0 0 0 100.0% Subtotal Dept Group Revenue: 5,197,573 4,983,384 5,369,959 5,056,518 5,116,518 3,333,759 0 0 5,261,393 104.1% Beginning Fund Balance 0 0 0 335,885 386,970 0 0 0 391,000 116.4% Subtotal Dept Group Revenue: 0 0 0 335,885 386,970 0 0 0 391,000 116.4% Total Dept Group Revenue: 5,197,573 4,983,384 5,369,95g 5,392,403 5,503,488 3,333,759 0 0 5,652,393 104.8% 2019 YTD 2019 Suppl. 2020 Prel. Prel.Bud I Expenses 2016 Actual 2017 Actual 2018 Actual 2019 Adopted 2019 Modified Actual Estimated Request Budget Adopted Unclassified 653,219 666,016 718,342 100,000 100,000 0 0 0 100,000 100.0% Salary&Wages 946,461 991,652 997,548 1,011,573 1,011,573 531,702 0 0 1,004,946 99.3% Employee Benefits 424,163 438,706 456,426 492,419 492,419 297,323 0 0 498,414 101.2% Supplies&Services 2,394,776 2,380,711 2,609,847 2,611,352 2,719,931 1,429,494 0 0 2,771,974 106.2% Governmental Transfer/Services 185,050 176,250 173,250 0 0 0 0 0 0 100.0% Debt Services 511,409 488,028 475,232 1,004,630 1,004,630 299,621 0 0 1,004,630 100.0% Subtotal Dept Group Expense: 5,115,078 5,141,363 5,430,645 5,219,974 5,328,553 2,558,139 0 0 5,379,964 103.1% Fund Balance 0 0 0 172,429 172,429 0 0 0 272,429 158.0% Capital 0 0 0 0 2,506 0 0 0 0 100.0% Subtotal Dept Group Expense: 0 0 0 172,429 174,935 0 0 0 272,429 158.0% Total Dept Group Expense: 5,115,078 5,141,363 5,430,645 5,392,403 5,503,488 2,558,139 0 0 5,652,393 104.8% BD53-3Yr Dept Group Summary Page 1 of 2 912412019 2:21:57 PM Spokane County Summit 3 Year Department Group Summary Program Budgets: 2019 YTD 2019 Suppl. 2020 Prel. Prel.Bud 1 Revenues 2016 Actual 2017 Actual 2018 Actual 2019 Adopted 2019 Modified Actual Estimated Request Budget Adopted Fair&Expo Center 1,375,619 1,371,873 1,389,353 1,324,832 1,324,832 1,090,783 0 0 1,419,567 1072% Fair Event 2,473,376 2,688,961 3,049,648 2,734,856 2,734,856 1,948,562 0 0 2,844,196 104.0% Non Operating 1,275,529 875,550 880,879 996,830 996,830 294,414 0 0 997,630 100.1% Refunding of Bond Issues 28,050 0 80 0 0 0 0 0 0 100.0% Marketing of Interstate Fair 45,000 0 0 0 0 0 0 0 0 100.0% County Fair Marketing 0 47,000 0 0 0 0 0 0 0 100.0% 2018 Fair Marketing 0 0 50,000 0 0 0 0 0 0 100.0% 2019 Fair Marketing 0 0 0 0 60,000 0 0 0 0 100.0% Subtotal Dept Group Revenue: 5,197,573 4,983,384 5,369,959 5,056,518 5,116,518 3,333,759 0 0 5,261,393 104.1% Fair&Expo Center 0 0 0 335,885 386,970 0 0 0 391,000 116.4% Refunding of Bond Issues 0 0 0 0 0 0 0 0 0 100.0% Subtotal Dept Group Revenue: 0 0 0 335,885 386,970 0 0 0 391,000 116.4% Total Dept Group Revenue: 5,197,573 4,983,384 5,369,959 5,392,403 5,503,488 3,333,759 0 0 5,652,393 104.8% 2019 YTD 2019 Suppl. 2020 Prel. Prel.Bud I Expenses 2016 Actual 2017 Actual 2018 Actual 2019 Adopted 2019 Modified Actual Estimated Request Budget. Adopted Fair&Expo Center 2,477,681 2,465,815 2,678,990 2,218,285 2,265,680 1,365,353 0 0 2,283,195 102.9% Fair Event 1,940,937 1,964,270 2,053,172 2,004,859 2,006,043 898,371 0 0 2,099,939 104.7% Non Operating 696,459 664,278 648,482 996,830 996,830 294,414 0 0 996,830 100.0% Refunding of Bond Issues 0 0 0 0 2,506 0 0 0 0 100.0% County Fair Marketing 0 47,000 0 0 0 0 0 0 0 100.0% 2018 Fair Marketing 0 0 50,000 0 0 0 0 0 0 100.0% 2019 Fair Marketing 0 0 0 0 60,000 0 0 0 0 100.0% Subtotal Dept Group Expense: 5,115,078 5,141,363 5,430,645 5,219,974 5,331,059 2,558,139 0 0 5,379,964 103.1% Fair&Expo Center 0 0 0 172,429 172,429 0 0 0 272,429 158.0% Subtotal Dept Group Expense: 0 0 0 172,429 172,429 0 0 0 272,429 158.0% Total Dept Group Expense: 5,115,078 5,141,363 5,430,645 5,392,403 5,503,488 2,558,139 0 0 5,652,393 104.8% BD53-3Yr Dept Group Summary Page 2 of 2 9124/2019 2:21:57 PM Spokane County Grant Application Review Form Please contact the Grants Administrator if you need assistance in completing this form. Prepared By Prepared Date Department/ Division Erin Gurtel 09/17/2021 Fair& Expo Center Grantor Grant Title City of Spokane Valley 2022 Spokane County Interstate Fair and Interim Event Marketing CHM# Grant Type 'Grant Start Grant End Applied Amount Direct Award J 02/01/2022 12/30/2022 $75,000 Briefly describe the purpose of the Grant Marketing the Spokane County Interstate Fair&Interim Events Will the activity in this grant have impacts on other departments? NO `io will assume grant administration responsiblities, including monitoring subcontractors, submitting program and activity ,eports, etc.? Erin Gurtel Will new County positions be created? If so, how many and what type are expected? NO 0 Are all wages and benefits paid in the grant? Will the positions be retained at the end of the grant period? NO NO Are indirect costs allowable? Will they be charged and allocated as indirect? NO NO Are there subrecipients? Does the fonder have any sustainability requirements? NO NO Match Required? Grant ID NO 2071 Printed 9/17/2021 2:55:06 PM Page 1 of 2 Spokane County Grant Application Review Form Please contact the Grants Administrator if you need assistance in completing this form. .1 TURE t ji 1.4 cted Officia /Dep meet Head REVIEWED 27-4,. �_�' ��! Grants Administrator tld Grant Application Authorized Ei Grant Application Must be Authorized by BOCC via Resolution El Other Chief Executive Officer ,s form must be signed by the appropriate elected official or department head and submitted to the Grants Administrator prior to application for any competitive grant or acceptance of any non-competitive grant or earmark. Please submit an original copy with signature and email a copy using the button above. If approved, the original form will be returned to the department or office applying for or receiving the grant. The approved form must also be included with the grant contract when it is submitted to the Board of County Commissioners for acceptance. For more information, refer to the Grants Management Policy and Procedures. Printed 9/17/2021 2:55:06 PM Page 2 of 2 CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES INSTRUCTIONS: All sections must be answered in their entirety for this application to be considered complete. Additional pages that are attached to the application must be labeled with the section number and section title. I. PROJECT AP LIGATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Titl • tri Q 4ciezvr_k Type of Project. ) c_'c` +6_,er-- _' i V Applicant: 0 L V( ��—LIkk , .�r►� / Phone: r 70 E-mail h ___ (-} al .(_vri Addre is: I' / � f City; ,, .. V _ Q-,l? State it)/9-- Zip 9qc_ __6, (�j U Applicants are: Non-profit )< Public/Municipal Agency Must be a non-profit 501(c)(3)or 501(c)(6) or a public agency to be considered for funding. Contact Person (if different than applicant): Phone: E-mail Address City State Zip Amount requested: !P 140 V 6 0 Applicant's matchff,D2 8 I 0 t Total project budget: ) 6 6 6Is this a new or continuing activity? i/`Uc,(iyt_. Will there be an admission charge for this activity? Yes No If so, how much? tf - 0 6) City of Spokane Valley Request for 2022 Grant Page 4 of 8 II. HISTORY In 2022, The Spokane Valley Heritage Museum (SVHM) will celebrate 18 years of serving the community as a repository for the history of Spokane Valley. The museum is housed in the Opportunity Township Hall (OTH), which will be 110 years old in July of 2022. Museum staff were successful in listing the building on the State and National Historic Registers in 2004. OTH is the last remaining township hall in WA State. The Museum has held non-profit 501 c 3 status since 2003,is staffed by volunteers and university interns, and managed by a Director and a Board of Directors. During the past 17 years, the SVHM has hosted 3 Smithsonian exhibits, and numerous exhibits interpreting local and national history. Attendees of Over 300 school field trips, hundreds of group tours and 12 history tours and 30 public history presentations have benefitted from an in-depth understanding of our history; and how history impacts our lives. For over 17 years, SVHM also has attracted the traveling public, seekers of historical and cultural knowledge, genealogists, authors searching for authentic information and history professionals, students; and business travelers looking for places of interest in the Spokane Valley. The museum also maintains a Historic and Cultural Sites database of important places in the timeline of Spokane Valley history. The Archives drive visits as well. In addition to Spokane Valley history, we have also compiled a significant amount of regional material. Expanding our collection to include the region has resulted in more visits to the museum and research requests. We maintain a searchable database which includes more than 7,700 records and the digitized Spokane Valley Herald newspapers, (1920— 1988). Our photo collection has grown to include approximately 11,000 photos. Mission & Function "To collect,preserve and a hi6it the history and heritage of the Spokane Talrey and the region for the inspiration and education of the community; and to promote the Spokane NallyYferitage Museum as a Cu(tura(ancri eritage'Tourist attraction of the region The SVHM also serves as the repository for our community's unique history. Schools, churches, fraternal organizations, clubs and residents have visited the museum and leave with a better sense of belonging to this community and a reason to be proud of who we are. III. PROJECT SUMMARY The project which the SVHM is planning is a tourism promotion project. The SVHM functions as a viable permanent tourist attraction; open all year long, attracting travelers and interpreting the significant history of Spokane Valley and surrounding region. As a tourist attraction, the SVHM plans exhibits and events that continue to attract visitors. Summary of the 2022 project the SVHM is requesting supporting funds for: 1. Smithsonian exhibit, "The Way We Worked". This Smithsonian exhibit will draw visitors from outside the region and from out of state. The exhibit will be installed in late May 2022 and run through the summer of 2022. 2. Tourism Promotion: 2022 Rack Card Rack Cards are a proven method of advertising to tourists. Visitor Centers, Hotels/Motels, Restaurants and other tourist-related attractions provide them for guests. Rack cards are typically mailed to other regions and states. The SVHM's current rack card is out of date and the supply is almost gone. IV. Scope of Work The project for which we are requesting funding is comprised of two components: promoting tourism and marketing the special events/exhibits. A Smithsonian exhibit and a Rack Card are the specific projects. As an established tourism facility, the SVHM works to create opportunities that appeal to tourists. The Smithsonian exhibit, "The Way We Worked", interprets 150 years of changes in the economy and how American workers adapted. The exhibit explores how work has become a central element in American culture. It traces the many changes that have affected the workforce and work environments over the past 150 years, including the growth of manufacturing and increasing use of technology of our communities. The SVHM will be holding a grand opening event and creating a companion exhibit depicting the way the Spokane Valley worked, from apple warehouse workers, truck farm pickers, emerging businesses that employed residents,to the technology companies formed in the Spokane Valley. Tourism marketing and the marketing and operation of special events/exhibits are achieved through the plans detailed below. The SVHM is hosting a traveling Smithsonian Exhibit May 28th -Aug 315t,2022! This will be the Museum's 4th time hosting a Smithsonian Exhibit! There is a rigorous selection process to become approved to host exhibits. The SVHM must pay a fee to host the exhibit, promote and advertise the exhibit and when the exhibit closes, ship the exhibit back at our cost. The Rack Card's purpose is for tourism promotion will attract travelers to the museum. It is being created in-house. Certified Brochure is the method of distribution, as well as mailing the card to out of the area visitor centers. a. We wish to continue to provide engaging exhibits to attract tourists and visitors to the museum. b. The community does benefit from having a museum that preserves and makes accessible the heritage of the Spokane Valley to its residents. Tourists stay at paid lodging, eat at restaurants and visit other amenities in the Spokane Valley. c. Dates of the Smithsonian exhibit are May 28th—Aug 315t, 2002 d. The Smithsonian exhibit is not a seasonal activity. The museum is open year-round. e. This is not an outdoor activity, there are no weather constraints. f. We will evaluate the success of the Smithsonian exhibit and Rack Card using the guest log which documents where people are coming from, where they are staying and how they heard about the Museum and/or Smithsonian exhibit. Exit survey is another tool the museum uses for collecting data pertinent to tourism. Discover YOUR Connection to ►Spoiie Valley History! to Whia, 0-0.11-41,11 ;1:e >, j ,,,%'k, . ,., ., k , r..,t L V Sir op�' 0 'cf` 1'( USEUM' 1474 Listed on the National Historical Register The Museum is open year round Wednesday through Saturday 11 am - 4 pm .te ` , A. �f iii . ,L. . . _ . Living History Presentations and annual events influence, inform and inspire a connection with history for the old and young alike. Annually, the Museum hosts our Heritage Program and History Presentations and Tours. Regularly we bring in a traveling exhibits, including Smithsonian Traveling Exhibits. • Our searchable ■ database contains ` thousands of photographs, • ---- Rim , .. archives, and a '' cultural --, ''�' and historic sites > ,',')' ' ,, ,' { '', s register. 1,,,..... ` ,,,a;.,.° . We are a Nonprofit 501c3. . We accept donations. Please contact us for more information. We offer a Museum membership and our application is available on our website. pPPORTVN I Ty cSpo ane `-Galley "912 .2leritage museum Our MISSION is to collect, preserve, and exhibit the heritage of the Spokane Valley for the education and inspiration of the community. 5I101<ailc 1411101 J 7icrilmgc�•lla out The Museum is located in - the Opportunity Township Hall, the last: remaining THANK YOU ._' Township Hall in the state FOR SUPPORTING of Washington. THE MUSEUM 'nit regions te,E you are Woking far pkaas and geuesif, N 1 To Spokane,WA 1-90 To Coeur d'Alene,ID North Pines Road Spokane Valley Heritage Museum and Parking Lot to the West East Sprague Ave. n a � ® I We are located at: E. 12114 Sprague Ave Spokane Valley, WA 99206 0.. Z 509-922-4570 `•sLi!I. Our mailing address is: Q; } ,' PO Box 141341 Spokane Valley, WA 99214 SCAN ME— spokanevalleyrnusewnergmail.corn spokanevalleymuseum.com 0 v II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? III. PROJECT SUMMARY Provide a concise summary of your request and what it will accomplish. If your request is part of a larger project, you may briefly describe the over-all project. However, please focus the bulk of your answer on the specific element for which you are requesting funding. IV. SCOPE OF WORK Fully describe the project. In addition, give a brief history of the event or organization. Expand on your Project Summary to address such issues as: a. What it is you wish to do? b. How and why the community will benefit? c. What are the beginning and ending dates of your project? d. Is it a seasonal activity appropriate to its location? e. If an outdoor activity, are there any weather-related constraints? f. What measures will you apply to evaluate its success? If you are requesting funds for a specific portion of a larger project, please so state but focus your response on the element for which you are requesting grant assistance. You may use additional pages as necessary. Attachments to this section should be labeled "IV. Scope of Work." V. IMPACT ON TOURISM "Tourism," as defined in RCW 67.28.080(5), means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. A practical measure of tourism is the number of visitors that are attracted to the area. Provide an estimated or "projected" number of visitors who are expected to be attracted by the proposal in the following categories: vfi4 a,f^ R x f0"1' J �,. �y5i �"_ git ...• ... . -S r+ :, Ki .-.h.. .rt7 .-_ KT 3, Total Overall Attendance ,Y'.P-g-v Total Igo Of total, attendees who traveled from another state or country 50 Q 0,4go*ice S't`f8 'oy i — d � .. a '�. �s._ 'y Paid Accommodations 00 Unpaid Accommodations Paid Lodging Nights* *one lodging night=one or more persons occupying one room for one night Provide a description of the methods used in making the above estimations as well as`a description of the methods that will be used to determine actual attendance and distinguish among the visitor categories(methods include a head count, car count, survey, or other with explanation). Attachments to this section should be labeled "V. Impact on Tourism." City of Spokane Valley Request for 2022 Grant Page 5 of 8 V. Impact on Tourism continued Description of methods used in the estimated numbers: The SVHM has hosted 3 other Smithsonian Exhibits successfully. Data from those exhibits demonstrate that Smithsonian exhibits are a substantial draw. They appeal to people not only in the region, but beyond Spokane County to surrounding counties. Significant numbers of tourists have come from North Idaho as well and as far as western Montana for previous Smithsonian exhibits. Methods employed to be used to determine actual attendance: Visitor data is captured at point of entry. Data captured includes a headcount, where people are coming from, how they heard about the museum, exhibit or event; and if they are staying in local hotels/motels, if so, which ones. Mini exit surveys are used as well to collect data. VI. CONSIDERATION OF CITY COUNCIL GOALS & PRIORITIES The Spokane Valley Heritage Museum's goals are aligned with the City Council's goals and priorities for tourism. The Spokane Valley Heritage Museum absolutely fulfills a significant role in increasing tourism. The museum has consistently demonstrated the ability to draw tourists from out of the area for over 17 years. The data we collect demonstrates visitors come from other areas of WA, and the other 50 states as well. We have a unique opportunity to capture data at the point of entry into the museum. The museum is an established anchor of tourism in the Spokane Valley and demonstrates positive economic impact in our community. Cultural and Heritage tourists and Genealogy travelers continue to hold their place as a rapidly expanding segment of the traveling public. By providing opportunities to discover history,the museum generates tourism dollars. 1. The museum's proposal requesting funding from the Spokane Valley Lodging Tax Fund absolutely meets the priorities of the City Council; and is focused on: a. Tourism Marketing b. The marketing and operations of special events and festivals. The museum's proposal will create identifiable increases in Spokane Valley tourism. The museum is requesting funding to advertise new activities; Smithsonian exhibits are a definite draw for tourists from out of the area. The Smithsonian exhibit is absolutely a special exhibit event! A new brochure is part of the funding request also as they are the tourism marketing pieces that are mailed to local and out of area/out of state visitor's centers. 2. This grant proposal is not submitted by a municipality or a public facility district. 3. Currently,out of area tourists account for 56% of visitors to the museum. The museum is the only Historical & Cultural attraction in the Spokane Valley. The museum is listed on Trip Advisor, the AAA site,American Association of Museums and Washington Association of Museums. We are a Blue Star Museum (free admission to active duty military) and listed on their national website. The Museum's target marketing area includes WA,N ID, and Western MT& Canada. 4. The museum has not received and will not receive funding from the TPA or Spokane Public Facility District other municipal entities or agencies for 2022. 5. We understand funding cannot be awarded above the amount requested. VII. PROJECT BUDGET Please detail the budget for your project. In addition to completing the chart below, you must also submit your general operating budget, or fund-level budget for public agencies. PROJECT BUDGET SHEET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL To be filled out by Public/Municipal Agencies: _ _ _ 1. Municipality tourism marketing $ $ $ 2. Municipality event and festivals $ $ $ 3, Municipality facilities (operations and capital) $ $ , $ To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and f `� �a advertising /3" tourism $ D $00 10/ 000 $t 2. Non-municipal entities for marketing and operating events and festivals $ '5 -010 0 $ / U) coo $ 600 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS W21 ICXX) $ 8 coo $ SiOOc *While matching funds are not required, the amount of additional funds an organization brings to an event is a good measure of that organization's commitment to success and the broad-base support for the project. City of Spokane Valley Request for 2022 Grant Page 7 of 8 VIII. ATTACHMENTS Please provide the following Information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level. 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 6. List co-sponsors, if any, by title and type. CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) - --(-11, _( �so,C.� I� (print or type name) et`/ I Lc 5[ ] )45/4 Title: / v{,e Date: IJ / City of Spokane Valley Request for 2022 Grant Page B of 8 . VC,C Lti/(:1 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. 0. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: � 2 (t)OR DL01-0602585 17053089803048 SPOKANE VALLEY HERITAGE MUSEUM Contact Person: PO BOX 141341 MICHAEL aT HANSON ID# 31127 SPOKANE VALLEY, WA 99214-1341 Contact Telephone Number: (877) 829-5500 Public Charity Status: 170 (b) (1) (A) (vi) Dear Applicant: Our letter dated December, 2003, stated you would be exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code, and you would _ be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501(c) (3) of the Code. Publication 557, Tax-Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll-free number for forms, (800) 829-3676. Information is also available on our Internet Web Site at www.irs.gov. If you have general questions about exempt organizations, please call our toll-free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, Robert Choi Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) 2022 Proposed Budget Spokane Valley Heritage Museum (Could may Impact budget) :_ Estimated Operating Revenue !Jan-Dec — — __, � ._. .__.. .__..__-- Notes L..a r Ent donation 10,000.00. -;Estimated Corporate Membership _.._-_. .I__... _ ..__7,500.00! iEstimated Individual Membership 7,000.00, IEstimated Heritage_ Programs/Auctions _ 13,200.00 ,Estimated/may be cancelled due to Gould General Contributions 5,000.001 iEstimated •Historical Photo Sales/Gift Shop 3,000.00� jEstimated Grants __30_000.00. !Estimated Estimated Book Store 1,020.00 — .u----—--- . ._... Misc revenue/sponsorship 3,500.00 , e 'Estimated I Total Projected Revenue w• — 80,220.001 Estimated Projected Operating Expense 11 Exhibits 1,600.00 (Ellis Island,Vietnam,Spo Bridge Program Expense 1,000.00` i Estimated Fundraising Expense 1,500.00; Marketing&Advertising 26 400.00;- _I -- Archives&Library 400.00 Book Store 400,001 Personnel ,' 27,500.00 _._.—._ Alarm 336.00 i Licenses-&Permits 1 300.001 - Insurance-Liability D&O 2,744.00 -Office Expense ; 2,000.00 l .. _-.._ ___._ Meeting_expense — 450.00, , Postage 470.001 Property Tax _ i 580.00 • Printing/Reproduction Costs -_- 1., 600.00 Professional Assoc. Dues/Subscriptions _ ' 250.00 Inside Bldg repairs/maintenance etc 3,000.00_ Staff DevefopmentfTraining i 500.00 s Volunteer recognition(bda , pla ues,xmas 500.001 Supplies-Office 750.001 Building Repairs/Maintenance/Warehouse i —A_3,000.001 I Supplies-Museum Kitchen 300.00i Telephone/Internet _ 1,200.001, Travel I 500.00 Uticities/Surer/Heat/Elect/Water 3,240.00 Historic Map repro casts--- _ 300.00 .... Photo Sales expense 400.00 paper/ink Total Projected Expense ' 80,220.00 _ -- ---I — — let draft 9.16.21 . Budget numbers are based on actual costs where possible otherwise they are estimated. Meetings Minutes of Spokane Valley Museum 8.26.2021 con't Zoom format, approved as to content New Business: The City of Spokane Valley will be accepting Lodging Tax apps for 2022. Cindy and Jayne and Angie will work on the grant if the museum wants to pursue it. We haven't applied for a Lodging Tax grant since 2019. The Smithsonian exhibit for spring of 2022 would qualify, and the new rack card for tourism promotion would as well. Grant would be for ads and marketing the Smithsonian exhibit and general museum tourism promotion ads. Bill C said we should pursue the grant. Tom seconded the motion. Vote was unanimous to pursue applying for the grant. Outside exhibits: The carriage acquired this summer will need to be stored at the Bill's place for the coming winter. We also need to go through the barn items to see if anything is to be removed. We will schedule a day for that and send out an email with the details. Nathan wilt let us know when the exhibits items will be put away. Heritage Program: A decision will need to be made soon whether we are going to hold the 17th annual program or not. Center Place will need to know as soon as possible. Marilyn McCall said Covid numbers are increasing, and they will probably go up when school starts. There was more discussion about the format this year, no food, only a presentation and merchandise table. Lisa F said we will need to make signs about masks being required and bring hand sanitizer and extra masks. Angie said she has some draft ads ready for review. A decision was tabled until the next meeting. Respectfully submitted. Nancy Pulham, subbing for Jaime McLeod. Q PORTVNITy a1 (Spokane Talley 'y 12 21erifaje il4useurn Spokane Valley Heritage Museum Board of Directors 2020 -2021 Board Chair Bill Phillips Vice Chair Nathan Riley Treasurer Nancy Pulham Secretary Jaime McLeod Member Barry Conklin Member Cindy Lundberg Member Tom McArthur Member Jeff Danner Member Carol Anderson Member Marilyn Miller Member Jerry Anderson Member Janie Gottschalk Member Marilyn McCall Member Will Mellick Member Byran Jepperson Member Joyce Mann Staff: Jayne Singleton, Director, Grant Writer, Valley Historian Maintenance: Riley Zielfelder, Marketing: Angie Terhaar r es �'4 , Spokane ValleySummer Theatre - � , mor � p' . ,___. 1 September 9, 2021 City of Spokane Valley Attn: Sarah Farr, Finance Department 10210 E. Sprague Avenue Spokane Valley, WA 99206 Dear Ms. Farr and City Council Members: Please accept the enclosed documents as Spokane Valley Summer Theatre's application for a LTAC grant of$20,000 from The City of Spokane Valley. As organizations who are both dedicated to building community, we hope that we can continue our mutually beneficial relationship with you to promote performing arts and theatre education in the region. The arts are a cornerstone of any well-built community. SVST is a professional not-for-profit summer theatre and acting conservatory serving the Pacific Inland Northwest. It is in its fifth season of operation (the sixth will be summer 2022), and is the only local performing arts organization in Spokane County to offer a summer lineup of productions and theatre education summer camps. We seek assistance purchasing the rights to three mainstage shows in 2022: Bridges of Madison County(Regional Premiere!), Newsies, and Sister Act. In 2021, SVST brought 32% of its patrons from outside the Cities of Spokane and Spokane Valley, and 11% from out of state. In the history of our company, those figures are 28.5% and 14% respectively. We have traditionally considered our market area from Missoula to Moses Lake and Canada to northern Oregon, serving the professional theatrical needs of the rural communities of the Inland Northwest. SVST seeks a $20,000 grant to increase our television advertising to these regions. We have budgeted $10,000 (with $40,000 for overall marketing), but think we could do much more for tourism and hospitality in the region. We have strong relationships with both the Tru by Hilton and the Mirabeau Hotel, and would like to continue drawing patrons to the area. SVST was the first theatrical company to bring back live in-person indoor theatre to the region in 2021. Little House on the Prairie: The Musical(Regional Premier) broke all box office records in both ticket sales (10%) and attendance (7%), over our previous best-seller, Mamma Mial, in 2019. This proves the very high demand for arts and culture in this region. We hope the City of Spokane Valley will continue our civic partnership and help us make this opportunity available to all local artists and patrons! Thank you in advance for your consideration. Sincerely, 44..ixe 60,44.0 Marnie Rorholm Development Director marnie@sysummertheatre.com Cell#509.981.2656 Business address: Mailing address: Central Valley I-Ggh School Perfo:ming Arts Center Spokane Valley Summer Theatre 821 S.Sullivan Road P.O.Box 1368 Spokane Valley,WA 99037 Spokane Valley,WA 99037 CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES INSTRUCTIONS: All sections must be answered in their entirety for this application to be considered complete. Additional pages that are attached to the application must be labeled with the section number and section title. I. PROJECT APPLICATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Title: _Marketing the 2022 SVST Blockbuster Season Type of Project:^Arts & Culture _ Applicant: _Mamie Rorholm Phone: 509.981.2656 _ E-mail _marnie@sysummertheatre.com Address: P.O. Box 1368 City: _Spokane Valley State_WA Zip_99037 Applicants are: Non-profit X Public/Municipal Agency Must be a non-profit 501(c)(3) or 601(c)(6)or a public agency to be considered for funding. Contact Person (if different than applicant): Phone: E-mail Address City State Zip Amount requested: $20,000 Applicant's match: $20,000 Total project budget: _$360,000 Is this a new or continuing activity?_continuing Will there be an admission charge for this activity? Yes No If so, how much? Yes, season ticket prices (all 3 shows) are: $112/adult, $105 senior/military, $68 student. Individual ticket prices will be determined in early 2022 and go on sale March 1, 2022. City of Spokane Valley Request for 2022 Grant Page 4 of 8 II. HISTORY Briefly describe your organization/business. What is its primary function and mission statement? III. PROJECT SUMMARY Provide a concise summary of your request and what it will accomplish. If your request is part of a larger project, you may briefly describe the over-all project. However, please focus the bulk of your answer on the specific element for which you are requesting funding. IV. SCOPE OF WORK Fully describe the project. In addition, give a brief history of the event or organization. Expand on your Project Summary to address such issues as: a. What it is you wish to do? b. How and why the community will benefit? c. What are the beginning and ending dates of your project? d. Is it a seasonal activity appropriate to its location? e. If an outdoor activity, are there any weather-related constraints? f. What measures will you apply to evaluate its success? If you are requesting funds for a specific portion of a larger project, please so state but focus your response on the element for which you are requesting grant assistance. You may use additional pages as necessary. Attachments to this section should be labeled "IV, Scope of Work." V. IMPACT ON TOURISM "Tourism," as defined in ROW 67.28.080(5), means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. A practical measure of tourism is the number of visitors that are attracted to the area. Provide an estimated or "projected" number of visitors who are expected to be attracted by the proposal in the following categories: Projected(expected to participate) = -— _-- —_ -- Total Overall Attendance 16,000 Attendees who traveled 50 miles or more to attend Total 5,100 Of total, attendees who traveled from another state or country 2,240 Attendees who stayed overnight Paid Accommodations 1120 Unpaid Accommodations 1120 Paid Lodging Nights* 35,840 *one lodging night=one or more persons occupying one room for one night Provide a description of the methods used in making the above estimations as well as a description of the methods that will be used to determine actual attendance and distinguish among the visitor categories (methods include a head count, car count, survey, or other with explanation). Attachments to this section should be labeled "V. Impact on Tourism." City of Spokane Valley Request for 2022 Grant Page 5 of 8 Applicants may find more information on the Joint Legislative Audit and Review Committee's guidelines under "Data Collection- I-low to report lodging tax expenditures" at I�ttp:llleg.wa.Luvhlarcll'agesld data t.aspx . Information requested in this section is required to be included at the time the application is submitted per RCW 67.28, as amended by Engrossed Substitute House Bill 1253 in 2013. If estimates are not given for all items listed in this section, then the application will be considered incomplete and will not be advanced to the Lodging Tax Advisory Committee for funding consideration. VI. SPOKANE VALLEY CITY COUNCIL GOALS AND PRIORITIES THAT SHOULD BE ADDRESSED IN YOUR APPLICATION The Spokane Valley City Council will make the final award of lodging tax revenues to candidates based upon the recommendations of the LTAC. The City Council has established goals and priorities for using lodging tax revenues to benefit tourism within Spokane Valley. In addition to the evaluation criteria outlined in the other sections of this application, the LTAC desires to understand how the applicant's proposal and project would meet the City Council goals and priorities. Please explain how the proposal meets City Council goals and priorities, listed below. Attachments to this section should be labeled "VII. Consideration of City Council Goals and Priorities" Council Goals and Priorities for Use of the Initial 2% Lodctinci Tax In August 2013 Council for the first time adopted goals and priorities that it encouraged the LTAC to consider when making award recommendations. Based upon subsequent discussions between Council and Staff in the years of 2014 through 2021, these have evolved as follows: 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law, which include: a. Tourism marketing b. The marketing and operations of special events and festivals c. The operation and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district d. The operation (but not capital expenditures) of tourism related facilities owned or operated by non-profit organizations. 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City (recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. City of Spokane Valley Request for 2022 Grant Page 6 of 8 VII. PROJECT BUDGET Please detail the budget for your project. In addition to completing the chart below, you must also submit your general operating budget, or fund-level budget for public agencies. PROJECT BUDGET SHEET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL To be filled out by Public/Municipal Agencies: 1. Municipality tourism marketing $ $ $ 2. Municipality event and festivals $ $ $ 3. Municipality facilities (operations and capital) $ $ $ To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $ 20000 $ 20000 $ 40000 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS $ 20000 $ 20000 $ 40000 *While matching funds are not required, the amount of additional funds an organization brings to an event is a good measure of that organization's commitment to success and the broad-base support for the project. City of Spokane Valley Request for 2022 Grant Page 7 of 8 VIII. ATTACHMENTS Please provide the following information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level. 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 6. List co-sponsors, if any, by title and type. CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) uz' (print or type name) Marnie Rorholm Title: Director of Development, SVST Date: 09/09/2 1 City of Spokane Valley Request for 2022 Grant Page 8 of 8 Peotk 'SUMMERTHEATR Spokane Valley Summer Theatre City of Spokane Valley LTAC Grant Proposal Narrative SVST Mission Statement: To enrich, entertain and serve our community in a safe, professional environment. II. History(2019-2021) SVST is a professional not-for-profit 501(c)3 summer theatre and acting conservatory serving the Pacific Inland Northwest,specifically the City of Spokane Valley. It is in its fifth season of operation (2021-2022 will be the sixth) and is the only local performing arts organization in Spokane County to offer a summer lineup of shows (most community theatres in the region are dark in the summer). The theatre functions under Executive Artistic Director Yvonne A.K.Johnson and stages its mainstage shows and educational Conservatory at the Central Valley Performing Arts Center, 821 S. Sullivan Road,Spokane Valley,WA, in cooperation with the Central Valley School district. As a professional company, SVST employs professional talent in acting, orchestra, design, backstage,tech crew,choreographers, administration, marketing and more! The past three years have been difficult on the professional performing arts. Due to unforeseen summer 2019 construction at the Central Valley Performing Arts Center, SVST was required to take our show on the road, in what we coined the`Field Trip Season", staging our performances at nearby University High School. The Central Valley School district was most generous in allowing us to temporarily move to this new space for the entire summer, and in return received permanent upgrades from our company in technical equipment to their facility (sound, lights, etc.). Unfortunately,there was no space for the Conservatory at U- High in 2019, so we were not able to offer theatre education. However,this mainstage season saw the highest grossing two shows in company history, The Sound of Music and Mamma Mia! 2019 brought a 42%increase in season ticket sales and to date a 37% increase in single ticket sales. Like most theatrical companies, SVST was not able to stage a 2020 season due to the COVID-19 pandemic. However,we were still able to host our Conservatory(theatre education wing)play-in-a-week camps,following all state mandates and protocols for health and safety. This program sold out.We also used this time to purchase land and begin a capital campaign for the Spokane Valley Performing Arts Center,which will be our permanent home in 2024 and beyond. In cooperation with the City of Spokane Valley Parks Department, SVST scheduled three performances in the new West Lawn Plaza at CenterPlace Regional Event Facility. The first two productions were cabaret-style shows in June which allowed for social distancing of actors and patrons. However,when Governor Inslee opened the State on June 30,the Central Valley School District graciously again offered us the auditorium in University High School to produce Little House on the Prairie: The Musical(Regional Premiere). SVST was the first theatrical company in the entire region to produce,full-capacity, live, indoor theatre. As a result, this production broke all single show attendance records (by 10%) and gross Box Office receipts (by 7%), over our previous best-selling production, Mamma Mia!In 2019. We also saw our largest ever single show audience on Sunday, August 1, at 550+patrons. The return of the Conservatory also brought a sellout to our play-in-a-week camps for grades 2-12,with all sessions full to capacity. In this region,the demand for our product is huge, and we are happy to center it in the City of Spokane Valley! Productions for the 2021-22 season will be Bridges of Madison County(Regional Premiere!)in June, Newsies in July and Sister Act in August. For the first time,we will be offering a Christmas Show at CVHS, Home for the Holidays:A Big Band Christmas. In summer 2022, we hope to return to at least six weeks of Conservatory camps. Ili. Project Summary SVST plans on staging 32 performances in summer 2022. The auditorium at CVHS holds 575 patrons and the last two seasons,we have been selling out. This equates to a projected 16,000 patrons next season. In 2021, SVST drew 32% of its patrons from outside the Cities of Spokane and Spokane Valley, and 1 1%from out of state. In the history of our company, those figures are 28.5% and 14% respectively.We have traditionally considered our market area from Missoula to Moses Lake and Canada to northern Oregon, serving the professional theatrical needs of the rural communities of the Inland Northwest. SVST seeks$20,000 to increase our TV advertising budget to draw more visitors and tourists to the City of Spokane Valley. We currently have$10,000 budgeted for TV(with an overall $40,000 marketing budget). SVST feels confident we can match $20,000 to that budget line,which would cover a wide market. We have collegial relationships with our community partners, the Tru by Hilton (offered a ticket/stay package in 2021) and the Mirabeau Hotel. As the City of Spokane Valley continues to establish its identity, SVST also hopes to continue its arts presence in the niche market between Spokane and Coeur d'Alene. The City of Spokane Valley,the Central Valley School District, and the Spokane Valley Chamber of Commerce have been great assets to our company in this regard. IV.Scope of Work A. What we wish to do SVST hopes to secure a minor grant of$20,000 to assist with television advertising for our 2022 season. This would more than double our efforts to bring patrons to the City of Spokane Valley, and make a significant impact on tourism and hospitality. A$20,000 grant would represent approximately 5% of our annual $360,000 budget. B. How the Community will benefit: The City of Spokane Valley, The Inland Northwest Region, and the rural communities surrounding Spokane County benefit from SVST's arts and culture offerings in Economic Impact. The statistic we like to quote from the National Endowment for the Arts (NEA)is that for every$1 spent on theatre tickets, $33 is pumped back into the local economy (from clothing, babysitting, pre-show meals, concessions, parking, etc.). SVST shows routinely draw audiences of 500+per show,with about 45 shows a season. Little House on the Prairie: The Musical grossed over$76,000 in single tickets, and$100,000 overall, pumping $2.5M -$3.3M into the local economy. Increased advertising in 2022 could do even more! C. Beginning and End Dates Productions will be held summer of 2022, one show is June, July and August each. Advertising would begin late May through mid-August. D.and E. Seasonal Activity and weather-related constraints Productions will be held in the Central Valley Performing Arts Center(CV High School),where patrons enjoy free-parking and air conditioning. After performing outdoors in the heat wave of late June 2021 (100+ temperatures), SVST will no longer be producing outdoor theatre, if we can help it. F. Measures to evaluate success SVST hopes to increase its statistics for patron attendance outside the Spokane/Spokane area and for out of state patrons. For the single 2022 season, we would like to see more than 11% of all patrons attend from out of state, and more than 32% from outside the cities of Spokane/Spokane Valley,thus beating our 2021 visitor attendance. Overall,we would like to beat our company history for drawing tourists, by exceeding 14% patron attendance from out of state, and 28.5% of patrons from outside Spokane/Spokane Valley. At SVST, we pride ourselves on offering professional theatre to serve the extensive rural markets that surround Spokane County. The ticket price and additional expenditures by these patrons (hotel, restaurants, etc.), stays entirely in the local economy. V. Project Budget See Main Application form. INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. 0. BOX 2508 CINCINNATI, OH 45201 -! 2016 Employer Identification Number: Date: N 47-5396048 DLN: 17053116333016 SPOKANE VALLEY SUMMER THEATRE Contact Person: 1519 E GILBERT AVE S J YINGLING ID# 31698 COEUR DALENE, ID 83815 Conta}t8Telephone Number: 0 Accounting Period Ending: December 31 Public Charity Status : 509(a)(2) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: October 29, 2015 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you' re exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3) . Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts uncer Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you' re a public charity under the IRC Section listed at the top of this letter. If weindicated at the top of this letter that you' re required to file Form 990/990 -E7/990--N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Fore 990-N, the e-Postcard) . If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. if we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to ww.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC. Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Letter 947 -2- SPOKANE VALLEY SUMMER THEATRE Sincerely, Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements LeLLer 947 Spokane Valley Summer Theatre Budget 2021 - (( iIIMMtA - - - - L FHEArrn.' INCOME . --- 2021 Budget Single Ticket Sales 160,000 Subscriptions 30,000 Concessions 5,000 Silent Auctions 6,000 Sponsorships 30,000 Ads 2,000 Contributions 20,000 Camp registrations 15,000 Grants 50,000 SVST Home for the Holidays in Concert-A Big Band Christmas 20,000 TshirWidoo/pic money 2,000 Total Gross Income: 360,000 EXPENSES Production Ticketing Services-Arts People 7,000 Production Coordinator-2 12,000 Costumes and Laundry 13,000 Dry Cleaning 500 Wigs 500 Props 600 Royalties 22,000 Scripts!Music Rentals 2,800 Sets 10,000 Sound and lighting 2,000 0 0 Production Subtotal: 70,400 Summer Courses Course Supplies 3000 Course Marketing-ads 1,000 Summer Camps Subtotal: 4,000 Bui3dina Facility fees 8,000 Insurance 3,300 Concessions 2,000 Office space 7,200 Contingency fund 2,000 Building Subtotal: 22,500 Administrative Morale fund/Business meetings 4,000 Accounting Fees 4,000 Banking fees/credit card charges 5,000 Licenses and Box Office Fees 3,000 Office Supplies/copying 1,000 Postage and Shipping 5,000 Storage rental 3,600 T-shirts and opening night gifts 3,000 Tech lunches/tips 2,000 Administrative Subtotal: 30,600 Marketing Season[Staid mailing 2,000 Ads-print 7,000 Billboards TV 10,000 Website I Internet ads $1,000 Posters 600 Programs 3,000 Graphic Designer 3,000 Miscellaneous 1,240 PayPal and Quictcbooks 360 postcard mailer 1,500 4 Opening night parties at Mirabeau Park Hotel 10,000 Marketing Subtotal: 39,700 • 1099 Subcontract Personnel Executive Artistic Director 60,000 Box Office Manager 7,000 Actors 25,000 Lighting Designer/Engineer 5,000 Technical Director 7.500 Set Designer 1,500 Assistant Costumer 2,000 Spotlight operators 1.800 Sound Designer/Engineer 5,000 Assistant Technical Director 1,500 Music Directors 6,000 Musicians 25,000 Choreographers 3,000 Directors 15,000 Production Stage Manager 3,500 Asst.Stage Managers(2 per show) 2,400 Sox Officers-performances 5,000 Conservatory Teachers 8,000 Running crew 2,000 PhotographerNideographer 3,000 Hairs Wigmistress 1.500 Prop master 600 Set assistants 1,500 1099 Subcontract Presonnel Subtotal' 192,800 Expense Total: 360,000 Total Net 0 2 SUMMER THEATRE Spokane Valley Summer Theatre Season Meeting — September 2, 2021 Called To Order at 5:00 P.M. by Yvonne A.K. Johnson Board Members: Ruth Kavanagh, President Sally Anschuetz, Director at Large Yvonne A.K. Johnson, Executive Artistic Director Emily Harvey, Secretary Daniel Hoffmann, Treasurer Old Business: • The 2021 Season finished in the black. o Single Ticket sale net income up 10% over the previous best-selling show Mamma Mia! from 2019 o Attendance up 7% over the previous best-selling show Mamma Mia! from 2019 o Single-show attendance record 557 patrons on August 1. o LHP was the first theatre company in the region to stage live in person theatre, indoors at full capacity. o Operating budget Increased 7% from summer 2020-2021 to 2021-2022 o Municipal, State and Federal Funding (Grants) up 71°lo from 2020 o Donations up 55% from 2020 o In-Kind donations up 93% from 2020 o Conservatory (summer camp) attendance sold out! Up 39% from summer 2020 to summer 2021 • SVST will return to CVHS for the 2021 season (per Principal Kerri Ames and Director Michael J. Muzatko) • WA State business license has been renewed and SVST with the Secretary of State. New Business: • Robyn Parks continues to be retained as our CPA for the season. We are changing our fiscal year budget to begin September 1 —August 31 to coincide with our annual programming and in preparation for SVPAC. The budget has doubled since the company's inception. • Barb Schaefer has been hired as Box Office Manager. (1099). Season tickets will go on sale September 7, 2021, • The 2021 season selection will include: A Big Band Christmas, Bridges of Madison County (Regional Premiere!), Newsies and Sister Act. Rights have been secured. o Mamma Mia! Was purchased by Coeur d'Alene Summer Theatre for their 2022 season, so we will pivot to BMC. As another regional premiere, we expect as much or more success as Little House. • David and Christina Lynch, and State Bank Northwest have confirmed season sponsorship for 2021. • The 2021 play in a week camps will present six play in a week camps for grades 2-6 and 2 week camps for drama and musical theatre for grades 7-12. • The Board has approved a preliminary 2021.22 budget. • SVST is applying for the 2021 City of Spokane Valley LTAC (Lodging and Tax) grant for $20k to increase TV advertising in 2022. Meeting adjourned at 6:00 P.M. Respectfully submitted, Ruth Kavanagh President Spokane Valley Summer Theatre SUMMER THEATRE Spokane Valley Summer Theatre 2022 Key Staff, Board of Directors and Advisory Council • Yvonne A.K. Johnson--Executive Artistic Director • Mike Muzatko -CVHS Theatre Director, SVST Scene Designer, Advisory Council President • Barb and Dean Schaefer-Box office, Website,PayPal Admin • Ginny Baxter-Graphic Designer(posters, social media, program, mailings, billboard,ads,t- shirts) • John and Katie Guarisco—Go Victory Marketing • Amanda Guarisco and Collin Pittmann-Production Coordinators (program gatherer, poster distribution) • David Baker—Technical Director • Dr, Mamie Rorholm—Director of Development • Linay Robison—Costume Designer • Logan Tiedt-Lighting Designer and Engineer • Daniel Urzika—Sound Designer and Engineer • Kevin Egeland and Will Long—CVHS Theatre Manager and CVHS Technical Director • Jeanette Brenner-Hair and Wigmistress • Ryan Patterson and Paul VilIabrille -Audition Coordinator,Advisory Council • Sue Mihalic -Scenic Painter • David Brewster and Drew Olsen -Music Directors • Darnelle Preston—Choral Director,Advisory Council • Andrea Olsen—Vocal Director, Choreographer, Advisory Council • Ingrid LaVoie— Choreographer • Lorna Hamilton-Choreographer • Kristin Larson—House Manager • Susanna Baylon—Media Coordinator, Council • Haliey Weber— Conservatory Instructor grades 7-12 • Austin Burrower, Emma Larson,Jennifer Tindall,Molly Robins—Conservatory Instructors grades 2-6 SUMMER fr THEATRE Spokane Valley Summer Theatre 2022 Board of Directors • President Ruth Kavanagh • Treasurer Daniel Hoffmann • Secretary Emily Harvey • Sal Anschuetz • Yvonne A,IC. Johnson Advisory Council Ryan Patterson Michael J. Muzatko Collin J. Pittmann David Lynch Haliey Weber Christina Lynch Andrea Olsen Susanna Baylon Drew Olsen Dean Fries Danielle Preston Dr. Mamie Rorhohn Patti Mortier Michael Rorholm Steve Mortier Paul Villabrille Coniinunity 13artners https://www.systimmertheatre.com/sponsors 2022 Season Sponsors: David & Christina Lynch Foundation State Bank Northwest // CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES I. PROJECT APPLICATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Title: Valleyfest Type of Project: Community Festival Applicant: Valleyfest Phone: 509-922-3299 E-mail peggy@valleyfest.org Address: 10814 E. Broadway Ave City: Spokane Valley State WA Zip: 99206 Applicants are: Non-profit yes Public/Municipal Agency Must be a non-profit 501(c)(3) or 501(c)(6) or a public agency to be considered for funding. Contact Person (if different than applicant): Peggy Doering Phone: 509 922-3299 E-mail: peggy@valleyfest.org Address: 10814 E. Broadway City: Spokane Valley State WA Zip: 99206 Amount requested: $30,000 Applicant's match: $15,000 Total project budget: -$185,000 Is this a new or continuing activity? continuing Will there be an admission charge for this activity? No If so, how much? free II. HISTORY Valleyfest is a non-profit organization committed to Spokane Valley prosperity. The Valleyfest mission is to produce community driven,safe,family-oriented, visually dramatic festivals.Valleyfest exposes the talent that enriches the region and celebrates the visual and performing arts, education,science,and recreation so the entire community can experience them. A part-time staff of one, summer interns,and community volunteers work throughout the year securing the funding necessary to provide safe,quality events,which showcase the Spokane Valley. Over the years,the average economic impact of Valleyfest is estimated at$2.3 million dollars for the three-day festival. III. PROJECT SUMMARY Valleyfest requests a grant to market and advertise to the Inland Northwest Region which includes North Idaho, Western Montana,and Eastern Washington. Valleyfest brings visitors to Spokane Valley and brings the community together to celebrate the assets of the Spokane Valley. The dates for the Cycle Celebration are July 31,2022,Multicultural Event September 25 and Valleyfest September 23,24 and 25th, 2022.Valleyfest will invite and market Spokane Valley to the Inland Northwest Region through TV, radio, social media, print,and email campaigns. The citizens of Spokane Valley and the business community benefit by having visitors spend money in the Valley while they visit Valleyfest. On-site spending and off-site spending related to the festival generates revenue for the Iocal economy. IV. SCOPE OF WORK A. Marketing materials produced by Valleyfest includethe City of Spokane Valley, Mirabeau Point Park and CenterPlace Regional EventCenter as part of the media campaigns.Citizens of the Spokane Valley and surroundingregion are invited to attend thethree-day festival to watch the Hearts of Gold parade on Fridayevening, participate in recreational activities, enjoy free entertainment at the three live festival stages,andto engage with over200 vendors at the event. The objectives are to create lasting sustainability and growth which economically benefit the City of Spokane Valley. Valleyfest is part of the cultural identity of the City of Spokane Valley bringing over 15,000 attendees to the Sprague Avenue parade and over 35,000 to Mirabeau Point Park, Center Place Regional Event Center, Spokane River, Plantes Ferry Park, and the Centennial Trail. In 2020, Valleyfest moved to a virtual event because of the COVID 19 pandemic. When this happened the City of Spokane Valley and Valleyfest decided not to utilize the LTAC grant for 2020. In 2021, Valleyfest was canceled as well and the LTAC funds for the festival were not used,that allocation was $12,000. The Cycle Celebration was held July 25, 2021 and those LTAC funds were used to promote the City of Spokane Valley. Regional marketing develops Spokane Valley's tourism objectives.Through effective marketing and promotion,Valleyfest invites both event visitors and vendors to shop and stay in Spokane Valley, with Valleyfest as the primary incentive for conducting commerce. Expected visitors and participants in Valleyfest can be categorized into several groups—each with unique economic impacts on Spokane Valley. 1 . New sales revenue to businesses in immediate and regional event vicinity 2. Exposure of Valley-based businesses to residents living outside Spokane Valley 3. Future Valley-based business opportunity 4. Hotel/Motel Room Nights 5. Branding/community advantages for Valley-based business.Research supportsthefactthat consumers may switch purchasingpreferencesto businesses that support favorable community causes/events, i.e. Valleyfest 6. Impact on restaurants,local vendors and merchants,and gas stations The Valleyfest volunteers work in collaboration with Spokane Valley businesses to reach more of the Spokane Valley business community. in 2019, Valleyfest and the Miss Spokane Valley Royalty Court attended the Lilac, Millwood,Tekoa,Fairfield,Davenport, Chewelah, and Deer Park community events inviting those communities to the Spokane Valley. In 2020 these activities were not allowed. In 2021,between June and August Valleyfest attended parades in Deer Park,Davenport, Tekoa. B. Dates of Valleyfest for 2022 are September 23, 24th and 25th It is a seasonal activity appropriate to the locations. C. Yes, weather can be a factor to some events. D. Measures to evaluate its success. Valleyfest' specific goals for the grant funds are to market and invite the Pacific NW to visit Spokane Valley. At the event, Valleyfest collects attendee surveys that ask visitors where they are from, where they are staying and what shopping they plan to do while in the Spokane Valley. Without the Lodging Tax monies,Valleyfest will have less money to advertise the event and promote the City of Spokane Valley. Funds are used to reach out to tourists outside of the greater Spokane area. Attendee surveys are compiled and analyzed to determine the economic impact of the event has on the community. Over the years,the average economic impact of Valleyfest has been estimated at$2.3 million dollars for the three-day festival. V. IMPACT ON TOURISM "Tourism," as defined in RCW 67.28.080(5), means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. A practical measure of tourism is the number of visitors that are attracted to the area. Provide an estimated or "projected" number of visitors who are expected to be attracted by the proposal in the following categories: Projected(expected to participate) Total Overall Attendance 33,000 Attendees who traveled 50 miles or more to attend Total 3615, Of total,attendees who traveled from another state or country 1950 Attendees who stayed ouerntght Paid Accommodations 525 Unpaid Accommodations 650 Paid Lodging Nights* 525 *one lodging night=one or more persons occupying one room for one night Gonzaga University Business Students administered representative surveys at entrances, key events and festival exits. A sample of this survey is attached to this report. The included questions related to demographics, awareness, lodging, spending and distance traveled. This data sample enabled statistical inferences and scale to accurately represent the population of 33,000. A total of219 surveys were collected throughout the duration of the festival. Attendees came from WA, LD, MT, OR, Ut, CO. NE, TN and Canada. VI. Consideration of City Council Goals and Priorities In 2019, Valleyfest partnered with LiteFeet,to bring a country swing dance competition to the festival, called"Swinging in the Valley". LiteFeet was started with the mission of building dance as an industry in Spokane. They work with kids,teens,adults and seniors to get people moving,communicating and enhancing their levels of fitness, friendship and fun. Their goal is to increase quality of life across all demographics in the Inland Northwest! With the goal of showcasing Spokane,Litefeet is building scalable events that are attractive at the local level, but as additional resources are acquired, we will attract dancers from further and further afield. We arc excited to continue to partner with Valleyfest and our amazing local non-profits to show THE WORLD what an amazing place Spokane and the Spokane Valley are to work, play, visit and homestead! In this second year,attendees came from Portland and Boise to compete. In 2020 prior to the cancelation of the event,Lite feet had added a Salsa Congress that would have brought an additional 200 participants. The outside space at CenterPlace was to be used as part of this venue and stage. Country Swing competition was drawing competitors from Colorado and Oregon. In 2021, this plan was again incorporated into the event using the new event space at CenterPlace on the west lawn.The expenses for this event increased with the staging, lighting, and branding the space. The Valleyfest 5K/10K Run is a Bloornsday Qualifier,which increases the registration for this segment of Multisport Sunday. Multisport Sunday is a triathlon, duathlon and a 5K/10K and the family bike ride. Valleyfest is always creating new events for Spokane Valley. With the COVM 19,this event was switched to Virtual in 2020 with 10 challenges around the Spokane Valley. In 2021, this was planned as a in person event,working with the Spokane County Parks and the soccer association at Plantes Ferry Park. The Hearts of Gold Parade Float will hopefully be able to continue outreach to the communities in the area. In 2021, Valleyfest formed a sponsorship with the Spokane Valley Elks Lodge 228,to purchase and travel with a community float for the Spokane Valley. The 35-foot cargo trailer will be wrapped to showcase the Spokane Valley. It is a large moveable billboard. Because of the interest in robotics/stem programs, Valleyfest is exploring a Maker Faire,mini module.In its simplest form, Maker Faire creates opportunities for conversations with Makers. Tech enthusiasts, crafters,educators, tinkerers,hobbyists, engineers,science clubs, authors, artists, students,and entrepreneurs all come together to show their projects and to talk about what they have learned. It is a community-based learning event that inspires everyone to become a maker, and connect with people and projects in their local community. We are going forward with hopes that this will be available in 2022. 2021 STEM/Robotics activities had included many businesses and universities in the Spokane area. In 2021, the newest event scheduled at Valleyfest was the Multicultural Festival which was scheduled for Sunday on the new space at Center Place on the West Lawn. In 2021, there was a full entertainment schedule for the festival stage, plus 18 booths and a very enthusiastic response in the community for this festival. Multicultural events have three key characteristics: 1.) Cultural celebration 2.) Cultural identity and expression 3.) Social interaction This event will serve a multitude of ethnic groups, cultures, religions, and languages. It provides the City of Spokane Valley an opportunity to create a shared environment for interests, identity, belonging, residence, and social status(inclusion)for a diverse population.This event will foster, enable, and focus attention and intention in a positive way. VI. Consideration of City Spokane Valley Goals and Priorities Hotels are marketed on Valleyfest's website with their logos, location, and contact information. All the participating hotels were linked to from the Valleyfest webpage to their hotel fink in 2019. Spokane Valley Mall,a major sponsor of the festival,used 300 tent cards in the food court throughout August and September encouraging visitors to return to the Spokane Valley. From the past numbers that we have from the registered events, festival attendees are shopping,dining and using hotels. The City of Spokane Valley Comprehensive Plan states"P-PI Support performing arts,community events, and relevant facilities."Valleyfest supports the arts through the Artist Corner,working with the Spokane Valley Arts Council and local artists,3 performing stages with dance,music and performance arts, and brings the community together for a full weekend of activities. Valleyfest markets the City of Spokane Valley and promote events that invite families to enjoy the beautiful area. Valleyfest will welcome tourists to Spokane Valley from July through September by promoting to Boise, Portland, Seattle, Western British Columbia,Missoula,Tri-cities, Yakima, Spokane, and Wenatchee. Valleyfest is a non-profit organization.Valleyfest is funded through grants,sponsorships,and registration and booth fees. Money from the hotel motel tax grant is required to promote the City of Spokane Valley. A part-time staff of one,summer interns, and community volunteers work throughout the year securing the finding necessary to provide safe, quality events, which showcase the region. Each year over 8,500 volunteer hours are donated to produce Valleyfest,the Spokane Valley Cycle Celebration,the Hearts of Gold Parade and new this year the Spokane Valley Hearts of Gold Float. The business community, nonprofit sector,schools, and community outreach step forward to volunteer for the event and we could not do it without their time and energy. Our objective is the continued growth of Valleyfest as a premier regional event, which economically benefits the City of Spokane Valley. Valleyfest is part of the cultural identity of the City of Spokane Valley bringing over I5,000 attendees to the Sprague Ave parade and over 35,000 to Mirabeau Point Park, CenterPlace Regional Event Center,the Spokane River, and the Centennial Trail. The specific element for which we request funding is the marketing and advertising of Valleyfest to a 500-mile radius. In order to accomplish this objective, our marketing message must be carried to a regional audience which includes all the Seattle, Portland, Boise,Tri-cities, Wenatchee, Missoula and Yakima. Regional marketing will develop Spokane Valley's tourism objectives. Through effective marketing and promotion, Valleyfest will invite both event visitors and vendors to shop and stay in Spokane Valley, with Valleyfest as the primary incentive for conducting commerce. Valleyfest meets community objectives by: • Providing free enriching experiences for the region's families, • Connecting people to CenterPlace Regional Event Center,the beauty of Mirabeau Point Park, and the City of Spokane Valley and the river that runs through it, • Spurring economic revitalization and development by hosting businesses to market their products to tens of thousands of potential customers, • Engage and build the community by: ■ showcasing the talent that enriches the Spokane Valley region; VL Consideration Of Council Goals and Priorities • Giving exposure of the cultural arts and provoking the mind; • Providing a wide range of artistic and multi-cultural experiences; • Attracting a diverse audience in culture, geography, and generations and • Creating an annual community driven, safe, celebratory event with memories. Vii. PROJECT BUDGET Please detail the budget for your project. In addition to completing the chart below, you must also submit your general operating budget, or fund-level budget for public agencies. PROJECT BUDGET SHEET GRANT AMOUNT CATEGORY REQUESTED I MATCH* TOTAL To be filled out by Public/Municipal Agencies: 1, Municipality tourism marketing , $ $ $ 2. Municipality event and festivals $ $ $ 3. Municipality facilities (operations and capital) $ $ $ To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $30,000 $15,000 $45,000 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS $30,000 $15,000 $45,000 *While matching funds are not required, the amount of additional funds an organization brings to an event is a good measure of that organization's commitment to success and the broad-base support for the project. Viii. ATTACHMENTS Please provide the following information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level, 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 6. List co-sponsors, if any, by title and type. CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) % --C,41/4 (print or type name) ,,�•r .l{ eN r fit, `J~-- r � Title: .;'.e. Date: / ,,,? /`,;1-0,79-7/ Internal Revenue Service Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Date: March 19, 2003 Person to Contact: Shawndea Krebs 31-02330 Customer Service Specialist Valfeyfest Toll Free Telephone Number: P 0 Box 368 8:00 a.m.to 5:30 p.m.EST Veredale WA 99037 877-829-5500 Fax Number: 5 1 3-263-3756 Federal Identification Number: 94-3152294 Dear Sir or Madam: This is in response to your request regarding your organization's tax exempt status. Our records indicate that a determination letter issued in April 1992 granted your organization exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code. That letter is still in effect. Based on information subsequently submitted, we classified your organization as one that is not a private foundation within the meaning of section 509(a) of the Code because it is an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi). This classification was based on the assumption that your organization's operations would continue as stated in the application. If your organization's sources of support, or its character, method of operations, or purposes have changed, please let us know so we can consider the effect of the change on the exempt status and foundation status of your organization. Your organization is required to file Form 990, Return of Organization Exempt from Income Tax, only if its gross receipts each year are normally more than $25,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of the organization's annual accounting period. The law imposes a penalty of $20 a day. t jp to a maximum of S10,000. when a return is filed late, unless there is reasonable cause for the delay. All exempt organizations (unless specifically excluded) are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of$100 or more paid to each employee during a calendar year. Your organization is not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). Organizations that are not private foundations are not subject to the excise taxes under Chapter 42 of the Code. However, these organizations are not automatically exempt from other federal excise taxes. Donors may deduct contributions to your organization as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to your organization or for its use are deductible for federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. -2- Valieyfest 94-3152294 Your organization is not required to file federal income tax returns unless it is subject to the tax on unrelated business income under section 511 of the Code. If your organization is subject to this tax, it must file an income tax return on the Form 990-T, Exempt Organization Business Income Tax Return. In this letter, we are not determining whether any of your organization's present or proposed activities are unrelated trade or business as defined in section 513 of the Code. The law requires you to make your organization's annual return available for public inspection without charge for three years after the due date of the return. You are also required to make available for public inspection a copy of your organization's exemption application, any supporting documents and the exemption letter to any individual who requests such documents in person or in writing. You can charge only a reasonable fee for reproduction and actual postage costs for the copied materials. The law does not require you to provide copies of public inspection documents that are widely available, such as by posting them on the Internet (World Wide Web). You may be liable for a penalty of$20 a day for each day you do not make these documents available for public Inspection (up to a maximum of$10,000 in the case of an annual return). Because this letter could help resolve any questions about your organization's exempt status and foundation status, you should keep it with the organization's permanent records. If you have any questions, please call us at the telephone number shown in the heading of this letter. This letter affirms your organization's exempt status. Sincerely. Ogi Zq&e, John E. Ricketts, Director,TE/GE Customer Account Services Valleyfest Board of Directors Meeting June 10, 2021 Inland Northwest Insurance, 12319 E Broadway, Spokane Valley or Zoom link Call to order 12:05 In Attendance: President, Rick Wilhite; Vice-President, Steve Florance; Secretary, Gail Bongiovanni; Executive rector, Peggy Doering; Carrie Ann Hoag, Stephanie Hughes, Tim Lane, Judy Lippman, Katrina Nebel. ZOOM Attendance: Treasurer, Rory Henneberg; Marcia Asmussen, Shirene Young. Approval March 11, 2021 minutes: Judy Lippman-motion to approve; Stephanie Hughes-2nd; APPROVED Review of Exec. Board minutes of May 13, 2021 OLD BUSINESS- 1. Treasurer's Report— Rory Henneberg 1st Interstate $ 21,436.51; Washington Trust Bank $ 44,994.72: Total $ 66,431.23 2. PPP Loan #2 Rick Wilhite $ 4,900 approved Working on forgiveness 3. Update on the Children's Foundation — Marcia Asmussen Marcia is traveling and will update when home. 4. Insurance update— Steve Florence, Peggy Doering Removed Fundraising Breakfast & Miss Spokane Valley Pageant. Added new float to policy. 5. Update on Valleyfest Web Site Security & Privacy Statements— Peggy Doering/Stephanie Hughes Covered by insurance. Folding Table pays for protection. Privacy document undergoing review from insurance & will send to Steven Anderson for Valleyfest review. BUSINESS: 1. INCITE Consulting — Peggy Doering Reviewed proposal. Not using at this time as Peggy has no plans to retire at this time. Executive Director job description needed. 2. Executive Directors Report—VALLEYFEST 2021 — Peggy Doering (See attached Exec Dir Rept) a. Cycle Celebration update Booths okay. Awaiting Gov Inslee June 30 update. b. Multi-Cultural event update Will cover next month. c. Float update Goal to have ready for Valleyfest Parade in September & use for Lilac Parade Nov 20, 2021. d. Valleyfest—The Event Stephanie Hughes-Motion to join Elks; Judy Lippman-2nd; APPROVED Marcia Asmussen-Motion to ask Elks board member to join Valleyfest board for next 2 years; Stephanie Hughes-2nd; APPROVED Stephanie Hughes-Motion to approve applying for LTAC & Economic Development grants; Marcia Asmussen-2nd; APPROVED Adjourn 1:35 Dates for upcoming Meetings: 1. July 8, 2021 —TBD 2. August 12, 2021 — Board Meeting 3. September 9, 2021 — Board Meeting 4. October 14, 2021 — Exec. Board Meeting A B C D E 1 Valleyfest 2022 Summary Budget , 2 City of Spokane Valley LTAC Grant, 3 2022 Projected Budget 4 Income 5 Booth - $25,000 6 Cycle Celebration $10,000 7 Miss Spokane Valley _ __ $2,000 8 LTAC Funds $20,000 9 Economic Development Grant $20,179.00 10 Multisport Registration $7,000 11 Sponsorship I $65,000 12 2021 Recovery Grants 20,300 13 Funds Brought forward $21,436.00 14 $185,515 15 190915 16 Expenses 17 Booth $1,100 18 Cycle Celebration $8,500 19 Miss Spokane Valley $4,500 20 Contract Services $4,000 21 Entertainment $28,000 22 Equipment Rental $12,000 23 Multisports $8,000 24 Security _ $5,000 25 Valleyfest Foundation Grants $3,000 25 Insurance $5,000 27 Marketing Expenses I _ $40,400 28 Office 1 $14,000 29 Payroll -- I $38,738 30 Misc expenses �- $7,825 31 Float _ _ ' $5,000 32 Event Production _ $5,852 33 $185,515 34 I i I 190915 List co-sponsors, if any, by title and type 2020-2021 Valleyfest Sponsors City of Spokane Valley Multi-Care Valley Hospital, Title Sponsor Modern Electric, Major Family Sponsor Inland Empire Paper Co, Main Sponsor Washington Health Care Finder Major Sponsor TDS Fiber Major Sponsor T Mobile Major Sponsor Spokane Valley Mall, Main Sponsor STA, Main Sponsor Fleet Feet, Main Sponsor Washington Trust Bank, Main Sponsor BECU, Partner Sponsor Sunshine Disposal, Partner Sponsor Inlander Partner Sponsor Waste Management, Partner Sponsor Pinecroft Business Park, Partner Sponsor Umpqua, Partner Sponsor Tim Lane State Farm Sponsor Gesa Credi Union Sponsor Anderson and Peretti Supporting Sponsor Inland Northwest Insurance Supporting Sponsor WA Arts Commission, Contributing Sponsor Banner Bank, Contributing Sponsor Yoke's, Contributing Sponsor Horizon Credit Union, Contributing Sponsor Fred Meyer, Contributing Sponsor Molina, Contributing Sponsor First Interstate Bank Contributing Sponsor Avista, Event Day Sponsor YMCA, Event Day Sponsor Dave's Bar and Grill, Event Day Sponsor KIND Snacks, Event Day Sponsor Premier Manufacturing, Inc, Float Sponsor Rich's Exxon on 16st, Float Sponsor Purfect Logos, LEG, Float Sponsor Celestial Selections, Float Sponsor Major Supporters also include: Spokane Valley Fire Department Spokane Valley Police Department Vera Water and Power Spokesman-Review S.C.O.P.E. The Bike Hub 2020 - 2021. VALLEYFEST BOARD OF DIRECTORS Revised March 12,2020 Rick Wilhite—President Wilhite Enterprises 1010 Sunnyvale Lane,Spokane Valley, WA 99037 Home: (509)922-3808 * Cell: 509-991-6634 wilhiterick@hotmail.com Steve Florance - Vice President Tim Lane Inland Northwest Insurance 1014 n.Pines Rd., Suite 101 12319 E Broadway, Spokane Valley,WA 99216 Spokane Valley Rotary Spokane Valley,WA 99206 Office: 509-926-5135 ' Cell: 509-926-5135 Work: (509)892-6373 Cell: 509-953-7262 tint(atitnlaneagencv.com stoveCi-inlandnwi.coin Gail Bongiovanni—Secretary Gail's School of Dance Judy Lippman 14120 E. Springfield,Spokane Valley,WA 99216-2053 Cell: 509-294-1437 Phone:(509)922-4493 Cell: ledVlippman50t gmaii.com �iildancer@juno.com Katrina Nebel Rory Henneberg - Treasurer 4321 S.Bowdish Rd Umpqua Bank 507 N. Mullan Rd, Spokane Valley, WA 99206 Spokane Valley,WA 99206 Phone:(509)842-1627 * Cell: 509-939-7908 Phone: 509-720-3675 RorvHennebern(itunpcivabank.com knebelit vmcain«.org Peggy Doering—Valleyfest Executive Director 11522 E. Sun View Cir,Spokane Valley, WA 99206 Shirene Young Cell Phone: 509-230-6829 * Office: 509-922-3299 8903 E Liberty pen2Y(a)vaIlevfest.org or doeringpeggy@gmail.com Spokane WA 99212 Youngps2@comcasLnet Marcia Asmussen 509 939 1083 (cell)Or 509 891 9173 (home) 1606 S Blake Rd., Spokane Valley,WA 99216 Phone: 509-590-5412 marcia22I4(cr),yahoo.com -- Carrie Ann Hoag 525 S. Barker Spokane Valley, WA 99016 Cell: 509-998-7673 Clioag9796 a)comcast.net Stephanie Hughes 124 W 16th Ave,Spokane, WA 99203 Home: (509)994-8681 * Cell: 509-456-4722 surn oma nat,comcast.net Tab 12 CTY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES L o PROJECT APPLICATION 1: .- ' b :T- .11 . ./ . , • ,_ - ,. . _ .. . ; - . July 31 r2_16t221,„ !� ' "g cy cLE lc .._, ....,, -4 CELEBRATION 4 „...., Project Title: 2022 Spokane Valley Cycle Celebration Webpage https://www.cyclecelebration.coni/ Facebook littps://wuw.facebook.com/spokanevalleycyclecelebrationf Twitter https://twitter.corn/cycicelebration Type of Project: Marketing the City of Spokane Valley as a destination to cyclists and their families Will there be an admission charge for this activity? Yes, Varies according to age: Adult$29.00 Applicant: Valleyfest Phone: 509-922-3299 Email: info@a valleyfest.org Address: P.O.Box 368 City: Spokane Valley State WA Zip 99037 Applicants are: Non-profit—Yes, Valleyfest is a 501 (C)3. Contact Person: Peggy Doering Amount requested: $5,000 Applicant's Match: $5,000 Total project budget: $40,000 Is this a new or continuing activity? Continuing IL HISTORY To celebrate the tenth anniversary of the City of Spokane Valley, Valleyfest produced the first annual Spokane Valley Cycle Celebration in 2013. The Spokane River, Centennial Trail, and the Spokane Valley's trail system were highlighted to a regional audience. In 2022 Valleyfest and the Cycle Celebration Committee will host the 10th annual Spokane Valley Cycle Celebration on July 31, 2022. Riders spend the day enjoying the scenic beauty in and around Spokane Valley on their choice of a 10-mile, 25-mile, or 50-mile bike ride. All bike rides start and finish at the North Centennial Trail Head across from Mirabeau Point Park Meadows. • Ride Amenities All routes are patrolled by first-aid teams who are in constant contact with Mirabeau Point Park first aid station. • A medical team staffs a first aid station at Mirabeau Point Park. • The Bike Hub provides mechanical support at Mirabeau Point Park. • SCOPE provides traffic direction at critical intersections. • Rides are clearly marked using signs at critical locations and Dan Henry Markers. • Each of the three comfort stations provides a portable toilet, food, and water and hand sanitizer. The food amenities are individually packed for the riders. These are the bike routes for the 10. 25- and 50-mile rides. . t.,,, - re I , we r... wt :,.. E I.11•xr•A:n Spok'ar6V ley A Colbert 1' :t:. �'• ,1 E.vet ewe St< 'J } 1� .. ' - R C 1 2- , ate- /f" i i- Millwood �� 'Gm f�ve.�-/ Past F ~� Spoken-... -` "" r .- -* •s Litserty Lake: * • . _.`s--- Dlehrwm HHtr A Naturalyaesouroes Spo -y Consnaroatlon Sal ' lands Spokane r .d „ • Ares Co rVatton ' \ N , { a i. Liberty Lakes Y"a•+s?.7 e 7i-- Regional Pa* Libnly La r . it Ragianal f f ' ` CD I • f Dishman Nips' j �T ., Conservancye Mien Peak•Con•ervat on r III. PROJECT SUMMARY The goal is to attract a regional audience to visit and stay in the Spokane Valley the weekend of July 31, 2022. The Cycle Celebration is Sunday morning and provides the opportunity for cyclists to shop,play, and stay in Spokane Valley Saturday before the event on Sunday. Valleyfest requests $5,000 to market the Spokane Valley Cycle Celebration event to a regional audience. The marketing funds will be used to attract a larger audience through advertising with statewide publications and online sites for Washington State cyclists.Rack cards will be distributed statewide along the 1-90 corridor. The marketing funds will be used to attract a larger audience through advertising in Boise,Portland, Seattle, Western British Columbia,Missoula,Tri-cities,Yakima, Spokane,and Wenatchee. With the help of local bike shops,advertising will be distributed through bike trade shows and the bike swap. Print advertising will include The inlander, Out There, Spokesman, Splash,Cycle Celebration website, http://cyclecelebration.conil, Facebook, https://www.facebook.com/spokanevaIleycyelecelebration/, and Twitter, https:Mu itter.coni/cycicelebration. Valleyfest used the 2021 funds to purchase Facebook ads and to distribute rack cards. CycLeCeLebratian.c0m 411, ‘. Illrl _ -4qf ',- .A, ' .... .,/,- . ,_ --- ,...- -.. . , - 'iv. p=rFSEfa TEU by cly cLE• -\v(tikyfest-' °CELEBRATION IV. SCOPE OF WORK a. Through marketing the Spokane Valley Cycle Celebration to a regional statewide audience,we expect to bring more cyclists to the Spokane Valley.The marketing funds will be used to attract a larger audience through advertising in Boise,Portland, Seattle, Western British Columbia,Missoula,Tri-cities, Yakima, Spokane,and Wenatchee.Valleyfest marketing efforts will be accomplished by uniting businesses and organizations with the tens of thousands of people who live in the community as well as visitors from outside the city. b. The community will benefit with continued exposure to the City of Spokane Valley through marketing buys to direct Cycle Celebration attendees and promote shopping,and vendors in City of Spokane Valley. Those visitors will use the Spokane Valley Mall, locally owned stores,gas stations,hotels, and restaurants. Cycle Celebration promotes the use of the trail systems,parks and other amenities of the Spokane Valley. c. The dates arc the following: Cycle Celebration is July 31,2022 d. It is appropriate to its location. Mirabeau Point Park,Centennial Trail,and City of Spokane Valley bike routes. e. Cycle Celebration happens"rain or shine"except in the case of lightening.Then we will ask the attendees to take cover. f. Evaluations will be compared from years' prior. g. To celebrate the tenth anniversary of the City of Spokane Valley,Valleyfest produced the first annual Spokane Valley Cycle Celebration in 2013.The Spokane River,Centennial Trail,and the Valley's trail system were highlighted to a regional audience. In 2022, Valleyfest and the Cycle Celebration Committee will host the 10th annual Spokane Valley Cycle Celebration on July 31, 2022. Riders spend the day enjoying the scenic beauty in and around Spokane Valley on a choice of a 10-mile, 25-mile,or 50-mile bike ride. All bike rides start and finish at the North Centennial Trail Head across from Mirabeau Point Park Meadows. V. IMPACT ON TOURISM 2021 Data Projected(expected to participate) AIL 1110111.1 Total Overall Attendance 210 Attendees fvho traveled SO Miles or more to attend Total 34 Of total,attendees who traveled from another state or country 16 Attendees who stayed overnight - u111.1111 - Paid Accommodations 1 I Unpaid Accommodations unknown Paid Lodging Nights* 11 *one lodging night—one or more persons occupying one room for one night Cycle Celebration registrants have not been formally surveyed. Their registration information is gathered at the time of their registration. In conversations with the registrants,they were informally surveyed as to where they stayed. In 2022,the attendees will be surveyed at the check in through an intercept survey. Our goal is to reach those who travel to North Idaho and Eastern Washington in the summer time,to make Spokane Valley one of their vacation stops, VT. CONSIDERATION OF CITY COUNCIL GOALS AND PRIORITIES In alignment with the City of Spokane Valley goals and objectives, the Cycle Celebration was started to increase awareness of the Centennial Trail,the Spokane River,the City of Spokane Valley's bike routes and the beauty that surrounds our city. This special event started by bringing an active group of volunteers who are passionate about cycling, either as their hobby or business,to plan the bike ride.Also,the City of Spokane Valley Comprehensive Plan states the goal is to"P-PI Support performing arts,community events, and relevant facilities." The bike ride has three routes. The 10-mile ride on the Centennial Trail, the 25-mile which starts on the trail and goes north to Peone Prairie and back to Barker road, with the site line of Mt. Spokane as part of the visual backdrop. The 50-mile ride includes the 25-mile and then extends past Liberty Lake to the hills of the Saltese Flats with Mica Peak as the backdrop. In the park, as the event develops, more festival-like amenities such as food, games, and music are going to be added to the venue. The local bike shops benefit from this event by developing customers and services as do the other local businesses that support the event's development such as the Molina Healthcare, Bernardo Wills, Barden and Barden law firm, and Bike Flub, City of Spokane Valley, Tru by Hilton, Brother's Office Pizza and followerwonk. Further planning includes working closely with social media resources to promote the event statewide. Those resources in 2021 include social media marketing firms with banner ads and posts on online cycling pages. The campaign targets statewide promotions to travel to Spokane Valley. As we reopen after being shuttered in 2020, our attendance numbers reflect the slow return to leisure travel and events. The sponsorship committee has resources that would be able to promote the event to their customers. Outdoor Northwest is one avenue to market statewide.The marketing plan targets cycling groups that travel and would come to Spokane Valley in the summer. Spokane Valley is between Washington lakes and the Idaho lakes. VII. PROJECT BUDGET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL To be filled out by Public/Municipal Agencies: 1.Municipality tourism marketing $ $ $ 2.Municipality event and festivals $ $ $ 3. Municipality facilities(operations and capital) To be filled out by Non-Profit Agencies: 4. Non-municipal entities promoting and advertising tourism $ $ 5,Non-municipal entities for marketing and operating events and festivals $5,000 _$5,000 $10,000 b.Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS: $5,000 $5,000 $10.000 VIII. ATTACHMENTS Please provide the following information as attachments. 1. Copy of state certificate of non-profit incorporation and/or copy of federal determination of 501(c)(3) or 501(c)(6) exempt status. 2. Copies of most recent approved and proposed budgets of the overall organization. For public agencies, copies of budgets should be at the fund-level. 3. Copy of meeting minutes showing official approval of project and authorization of application or a signed resolution of the board of directors authorizing the application. 4. List of members of the organization's board of directors and principal staff. 6. List co-sponsors, if any, by title and type. CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local, state, or federal law. 2. That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) (+- .i L, , (print or type name) js Title: ter ' _ Date: 9/ 7 o -/ Internal Revenue Service Department of the Treasury • P. O. Box 2508 Cincinnati, OH 45201 Date: March 19, 2003 Person to Contact: Shawndea Krebs 31-02330 Customer Service Specialist Valleyfest Toll Free Telephone Number: P 0 Box 368 8:00 a.m.to 8:30 p.m.CST Veredale WA 99037 877-829-5500 Fax Number: 513-263-3756 Federal Identification Number: 94-3152294 Dear Sir or Madam: This is in response to your request regarding your organization's tax exempt status. Our records indicate that a determination letter issued in April 1992 granted your organization exemption from federal income tax under section 501(c)(3) of the internal Revenue Code. That letter is still in effect. Based on information subsequently submitted, we classified your organization as one that is not a private foundation within the meaning of section 509(a) of the Code because it is an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi). This classification was based on the assumption that your organization's operations would continue as stated in the application. if your organization's sources of support, or its character, method of operations, or purposes have changed, please let us know so we can consider the effect of the change on the exempt status and foundation status of your organization. Your organization is required to file Form 990, Return of Organization Exempt from Income Tax, only if its gross receipts each year are normally more than $25,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of the organization's annual accounting period. The law imposes a penalty of V20 a day, upto a maximum of $10,000,when returnlate, unless isreasonable causethe v,+. e.. a is filed there for : a delay_ All exempt organizations (unless specifically excluded) are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of 5100 or more paid to each employee during a calendar year. Your organization is not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). Organizations that are not private foundations are not subject to the excise taxes under Chapter 42 of the Code. However, these organizations are not automatically exempt from other federal excise taxes. Donors may deduct contributions to your organization as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to your organization or for its use are deductible for federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. -2- Valleyfest 94-3152294 Your organization is not required to file federal income tax returns unless it is subject to the tax on unrelated business income under section 511 of the Code. if your organization is subject to this tax, it must file an income tax return on the Form 990-T, Exempt Organization Business Income Tax Return. In this letter, we are not determining whether any of your organization's present or proposed activities are unrelated trade or business as defined in section 513 of the Code. The law requires you to make your organization's annual return available for public Inspection without charge for three years after the due date of the return. You are also required to make available for public inspection a copy of your organization's exemption application, any supporting documents and the exemption letter to any individual who requests such documents in person or in writing. You can charge only a reasonable fee for reproduction and actual postage costs for the copied materials. The law does not require you to provide copies of public inspection documents that are widely available, such as by posting them on the Internet (World Wide Web). You may be liable for a penalty of$20 a day for each day you do not make these documents available for public inspection (up to a maximum of$10,000 in the case of an annual return). Because this letter could help resolve any questions about your organization's exempt status and foundation status,you should keep it with the organization's permanent records. If you have any questions, please call us at the telephone number shown in the heading of this letter. This letter affirms your organization's exempt status. Sincerely, S'qe1=b -, John E. Ricketts,Director,TEIGE Customer Account Services Valleyfest Board of Directors Meeting June 10, 2021 Inland Northwest Insurance, 12319 E Broadway, Spokane Valley or Zoom link Call to order 12:05 In Attendance: President, Rick Wilhite; Vice-President, Steve Florance; Secretary, Gail Bongiovanni; Executive 'irector, Peggy Doering; Carrie Ann Hoag, Stephanie Hughes, Tim Lane, Judy Lippman, Katrina Nebel. ZOOM Attendance: Treasurer, Rory Henneberg; Marcia Asmussen, Shirene Young. Approval March 11, 2021 minutes: Judy Lippman-motion to approve; Stephanie Hughes-2nd; APPROVED Review of Exec. Board minutes of May 13, 2021 OLD BUSINESS- 1. Treasurer's Report— Rory Henneberg 1st Interstate $ 21,436.51; Washington Trust Bank $ 44,994.72: Total $ 66,431.23 2. PPP Loan #2 — Rick Wilhite $ 4,900 approved Working on forgiveness 3. Update on the Children's Foundation Marcia Asmussen Marcia is traveling and will update when home. 4. Insurance update— Steve Florence, Peggy Doering Removed Fundraising Breakfast & Miss Spokane Valley Pageant. Added new float to policy. 5. Update on Valleyfest Web Site Security & Privacy Statements -- Peggy Doering/Stephanie Hughes Covered by insurance. Folding Table pays for protection. Privacy document undergoing review from insurance & will send to Steven Anderson for Valleyfest review. 7W BUSINESS: 1. INCITE Consulting — Peggy Doering Reviewed proposal. Not using at this time as Peggy has no plans to retire at this time. Executive Director job description needed. 2. Executive Directors Report— VALLEYFEST 2021 — Peggy Doering (See attached Exec Dir Rept) a. Cycle Celebration update Booths okay. Awaiting Gov Inslee June 30 update. b. Multi-Cultural event update Will cover next month. c. Float update Goal to have ready for Valleyfest Parade in September & use for Lilac Parade Nov 20, 2021. d. Valleyfest —The Event Stephanie Hughes-Motion to join Elks; Judy Lippman-2nd; APPROVED Marcia Asmussen-Motion to ask Elks board member to join Valleyfest board for next 2 years; Stephanie Hughes-2nd; APPROVED Stephanie Hughes-Motion to approve applying for LTAC & Economic Development grants; Marcia Asmussen-2nd; APPROVED Adjourn 1:35 Dates for upcoming Meetings: 1. July $, 2021 -TBD 2. August 12, 2021 — Board Meeting 3. September 9, 2021 — Board Meeting 4. October 14, 2021 — Exec. Board Meeting A B I CI D E 1 Valleyfest 2022 Summary Budget 2 City of Spokane Valley LTAC Grant 3 2022 Projected Budget 4 5 Booth $25,000 6 Cyycle Celebration _ $10,000 7 Miss Spokane Valley $2,000 8 LTAC Funds $20,000 9 Economic Development Grant $20,179.00 10 Multisport Registration _ $7,000 11 Sponsorship $65,000 12 21 Recovery Grants 20,300 13 Funds Brought forward $21,436.00 14 $185,515 15 190915 16 Expenses - 17 Booth $1,100 18 Cycle Celebration _ $8,500 19 Miss Spokane Valley $4,500 20 Contract Services , $4,000 21 Entertainment $28,000 22 Equipment Rental $12,000 23 Multisports $8,000 24 Security _ $5,000 25 Valleyfest Foundation Grants $3,000 26 Insurance _ $5,000 27 Marketing Expenses $40,400 28 Office f $14,000 29 Payroll _ $38,738 30 Misc expenses $7,825 31 Float $5,000 32 Event Production $5,852 33 _ _ _ $185,515 34 190915 List co-sponsors, if any, by title and type 2020-2021 Valleyfest Sponsors City of Spokane Valley Multi-Care Valley Hospital, Title Sponsor Modern Electric, Major Family Sponsor Inland Empire Paper Co, Main Sponsor Washington Health Care Finder Major Sponsor TDS Fiber Major Sponsor T Mobile Major Sponsor Spokane Valley Mall, Main Sponsor STA, Main Sponsor Fleet Feet, Main Sponsor Washington Trust Bank, Main Sponsor BECU, Partner Sponsor Sunshine Disposal, Partner Sponsor Inlander Partner Sponsor Waste Management, Partner Sponsor Pinecroft Business Park, Partner Sponsor Umpqua, Partner Sponsor Tim Lane State Farm Sponsor Gesa Credi Union Sponsor Anderson and Peretti Supporting Sponsor Inland Northwest Insurance Supporting Sponsor WA Arts Commission, Contributing Sponsor Banner Bank, Contributing Sponsor Yoke's, Contributing Sponsor Horizon Credit Union, Contributing Sponsor Fred Meyer, Contributing Sponsor Molina, Contributing Sponsor First interstate Bank Contributing Sponsor Avista, Event Day Sponsor YMCA, Event Day Sponsor Dave's Bar and Grill, Event Day Sponsor KIND Snacks, Event Day Sponsor Premier Manufacturing, Inc, Float Sponsor Rich's Exxon on 16st, Float Sponsor Purfect Logos, LLC, Float Sponsor Celestial Selections, Float Sponsor Major Supporters also include: Spokane Valley Fire Department Spokane Valley Police Department Vera Water and Power Spokesman-Review S.C.O.P.E. The Bike Hub 2020 - 2021 VALLEYFEST BOARD OF DIRECTORS Revised March 12,2920 Rick Wilhite—President Wilhite Enterprises 1010 Sunnyvale Lane, Spokane Valley, WA 99037 Home:(509)922-3808 * Cell: 509-991-6634 wilhite rickrahotmail.com Steve Florance - Vice President Tim Lane Inland Northwest Insurance 1014 n.Pines Rd., Suite 101 12319 E Broadway,Spokane Valley,WA 99216 Spokane Valley, WA 99206 Spokane Valley Rotary Office: 509-926-5135 * Cell: 509-926-5135 Work: (509)892-6373 Cell: 509-953-7262 1im tirnlanea�ency.conl stevef(a)inlandriwi.com tim@timlaneagency.com llongiovanni—Secretary Judy Lippman Gail's School of Dance Cell: 509-294-1437 14120 E. Springfield, Spokane Valley,WA 99216-2053 Cell:judylippmanse@gmau.com .com Phone: (509)922-4493 Cell: aaildancer@june.com Rory Henneberg - Treasurer Katrina Nebel Umpqua Bank 4321 S.Bowdish Rd 507 N.Mullan Rd, Spokane Valley, WA 99206 Spokane Valley,WA 99206 Phone:(509)842-1627 * Cell: 509-939-7908 Phone: 509-720-3675 RorvHenneberegumpquabank.com knebel ,ynicainw.org Peggy Doering—Valleyfest Executive Director Shirene Young 11522 E.Sun View Cir,Spokane Valley, WA 99206 Cell Phone:509-230-6829 * Office: 509-922-3299 8903 E Liberty peg2y(vallevfest.org or doeringpeggy@gmail.com Spokane WA 99212 Youngps2(ccomcast.net Marcia Asmussen 509 939 1083 (cell)Or 509 891 9173 (home) 1606 S Blake Rd.,Spokane Valley,WA 99216 Phone: 509-590-5412 marcia221 }( vahoo.cons Carrie Ann Hoag 525 S.Barker Spokane Valley, WA 99016 Cell: 509-998-7673 C:ho ag 9 7960/c one c a sa.n et Stephanie Hughes 124 W 16th Ave, Spokane,WA 99203 Home:(509)994-8681 * Cell: 509-456-4722 sumoinan a.Comeast.net 73 CITY OF SPOKANE VALLEY APPLICATION FOR LODGING TAX FUND MONIES I. PROJECT APPLICATION DEADLINE: October 1, 2021 before 4:00 p.m. Project Title: New Fairgrounds Expo Center Type of Project: Capital Construction Applicant: City of Spokane Valley Phone: 509-720-5000 E-mail cityhall@spokanevallev.org Address: 10210 E. Sprague Ave. City: Spokane Valley State WA Zip 99206 Applicants are: Non-profit Public/Municipal Agency X Must be a non-profit 501(c)(3) or 501(c)(6) or a public agency to be considered for funding. Contact Person (if different than applicant): Mike Basinger Phone: 509-720-5331 E-mail mbasinger@spokanevalley.org Address 10210 E.Sprague Ave. City Spokane Valley State WA Zip 99206 Amount requested:$2,986,573 in Fund #104 reserves plus future revenue collections in and allocations to Fund #104 until the project is completed Applicant's match: $1,750,000 ($1,000,000 from City reserves and $750,000 in State funding) Total project budget: $10 000,000 for the completed project Is this a new or continuing activity? New Will there be an admission charge for this activity4:11 No If so, how much? Unknown 1 II. HISTORY The City of Spokane Valley is committed to building a community where individuals and families can grow and play, and businesses will flourish and prosper.This vision provides the foundation for all services provided by the city, and the establishment of economic policies that are business-friendly and support job creation in a variety of sectors. In 2015, the City contracted with Community Attributes Inc. to develop a Retail Improvement Strategy and Action Plan. The plan identified a strong connection between a thriving retail community and successful tourism sector. The study noted that the City was lagging in trade capture for hotel accommodation, food and drinking establishments and performing/sports event spending. Recommended strategies included the expansion of existing events and development of new attractions, and additional marketing to improve the city's identity and brand. Pursuing tourism as an economic driver, the City contracted with Community Attributes a year later to conduct an analysis of its tourism sector and identify economic development strategies and actions.The resulting 2016 Tourism Plan identified nine projects, including an expanded mixed-use facility around the Fairgrounds and Avista Stadium,for future development. These projects would likely boost tourism and help anchor the City's leisure and retail community. In 2017, a more in-depth analysis of six of the nine projects (trails and arts; whitewater/waterfront park; arts and entertainment venue; Fairgrounds/Expo Center facility; Balfour Park; and new Event Space) estimated that an expanded Expo Center facility would cost between $7.5 and $9.5 million, and generate the highest amount of direct, indirect, and associated visitor spending at$3.9 million per year, as well as create 43 jobs annually. Since 2017,the City has moved forward on several smaller projects identified in the Tourism Plan, including developing new events such as Crave! and a seasonal Farmers Market, and construction of the West Lawn Plaza (i.e., new outdoor event space) at CenterPlace Regional Event Center.The city has also extended the Appleway Trail and is finalizing plans to expand Balfour Park. In 2020, the City began discussions with Spokane M&dnEntry County regarding the _' ~ BroadvieyAve. concept of expanding the 1 _ Expo Center to create I' a ! ' additional space and I ! 11 -j� A 4 I I q versatility to attract and i e. Frame antl support multipleltd unrin Ames!Gate :x conferences and special events. • i it M, ts=Eg - r The existing facility has a �. fits . successful history of hosting I s . •� the fair (in its 70th year) and ' e". ligItt trade shows such as RV, Ira. 1 ' 2 auto, boat, equestrian, hobby, craft and vintage shows, but lacks small breakout rooms and catering facilities to attract conferences, corporate events and private parties. III. PROJECT SUMMARY The City, in partnership with Spokane County, proposes to construct a new 32,300-square-foot building at the Expo Center. Owned and operated by the County,the Expo Center sits on 91.4 acres and currently offers 140,000-square-feet of indoor exhibit space, a 5,200-seat grandstand arena, and livestock facilities. sit + om—T ` , .!.- r -, f =1- t I fl FAIR, r BAWL The new building will be attached to the northwest corner of the existing Expo facility, allowing the building entrance to face East Broadway Ave. It will provide a new and exciting showpiece, and provide new conferencing space, a full-service restaurant, administrative and ticket sales offices, and a stylish entry to welcome visitors. The facility will provide a boost to the local economy and generate additional foot traffic to nearby hotels, restaurants and retail shops. It may also serve as a catalyst for further new development in surrounding neighborhoods. The City projects the building will cost$10 million to design and construct. The City is requesting to dedicate$2,986,000 in lodging tax proceeds that have accumulated through December 2020 in Fund #104 to support design and construction of the facility.The City is also requesting to commit all future revenue collections and allocations to Fund#104 until the project is fully funded. Currently, the City has committed$1 million in City funds and $750,000 from a state appropriation to move the project forward. 3 IV. SCOPE OF WORK Specifically,the new building would include the following spaces: ___ ITEM COST PROJECT COST Exhibit Hall 16,000 SF $250 $4,000,000 Lobby 2,000 SF $300 $600.000 Administration 2,500 SF $250 $625,000 Restaurant(shell space built out by 4,000 SF $150 $600,000 tenant) Meeting Room#1 4,000 SF $285 $1,140,000 Meeting Room#2 1,000 SF $285 $285,000 Meeting Room#3 1,000 SF $285 $285,000 Meeting Room#4 1,000 SF $285 $285,000 Meeting Room#5 800 SF $285 $228,000 SUBTOTAL 32,300 SF $8,048,000 $8,048,000 Site Development 162,000 SF $7 $1,134,000 $1,134,000 Project Costs: Design, Permitting, Inspections,Surveys,Geotech, etc. $800,000 $800,000 OVERALL TOTAL $9,982,000 The first floor of the proposed building would house the new exhibit hall, restaurant, lobby and administrative/sales ticket offices.The second floor would include five new meeting rooms (see schematic below). [ _ -- r I a r ;��r� fl ,_ „_, 1 ._ 4 .„ (, .:,_,I,T I ,,,,.,,,,, ,\, II . y 1 Outdoor Seating >� '. ' � 1 tabby Restnur _ ��_ •��, tonl 2,000 st 141x1d . Exhibit Hall , 16,000 sl E n ¢rt i , „. i c r '��SECOND 'FLOtJR ; j - . ..(� t Exhibit Hall f ! ' Meeting 2-Story Below -L-Meeting Room 115 ' Room#1 Lobby !` BOO st / —' 4,000 st - +h t y, Meeting Room N4 t J `- 1� Meeting Room 42 - Meeting Room t13 i :,.,......,._,........_..z.....s.,.._...,- ,i,--_-------- . ,. The existing Expo Center is generally limited to hosting trade show events and lacks the versatility to provide smaller rooms for meetings and conferences. The expansion would create a multipurpose indoor facility with the flexibility to: • Allow existing events to expand and benefit from onsite catering • Host new single events that require conference facilities and small breakout rooms • Host multiple groups/events at one time through improved flexibility in dividing and using new space • Provide on-site restaurant service to event attendees or ballpark visitors (currently, the area is generally limited to fast food establishments) • Provide on-site catering for small events such as corporate meetings, fundraisers,small private parties, and celebrations • Host regional distribution/health testing/vaccination events to meet future public health needs The new facility supports goals outlined in the Spokane County Fair and Expo Center Long Range Master Plan that was developed in 2009.The plan identifies both the need to expand event space and provide new types of facilities, as well as the need for a "onsite sit-down restaurant" where patrons can gather and enjoy a meal between shows or other events. The new building will also compliment any future enhancements to Avista Stadium, home of the Spokane Indians, a Minor League Baseball team affiliated with the Colorado Rockies. In 2021,the Indians' season expanded from 70 to 120 games due to revisions in the minor league system. The City has set aside$1 million in the 2022 budget to begin the design process for the building. Construction will move forward as soon as the necessary funds are secured. The City is seeking additional federal and state funding to support the project. Once completed, the building will be owned, maintained and operated by Spokane County as part of the broader Fair and Expo Center facility.The City will continue to help promote both existing and new public events at the facility as it does currently through its tourism marketing plan. Additional renderings of the proposed facility. , 11( ufa'a 1.161 4P- r_- • _ - • ems = -*.u111:1:11/P. - 1aSz jlir4 L "a 5 , ,., ii„, ,,,..r _ , . .....,,_..., ,, ..., ii. ._,..: z Iyty,�I ii7YYY. _ , ___ �� . _ . . ___ — I ___ .. _ __ ,.___ , _______________—_ _____— ----Th, ,..___, , ______ .... 1 ei u• _ ,_ ,..... �— cw — , ,' _ .., , ...7 - Gc ti• l i m V. IMPACT ON TOURISM An in-depth tourism analysis completed in 2017 by Community Attributes Inc. estimated the new Expo building would provide increased capacity to attract and hold 10 to 30 events annually. These estimations were based on case studies from fair facilities in Reno, Nev.; Lansing, Mich.; Vallejo, Calif.; and Nashville, Tenn. As a baseline scenario to identify potential fiscal impacts, the study projects the expanded facility would hold 20 new events each year that attract 57,600 visitors,generating$1.2 million in direct and indirect (onsite) spending and $2.7 million in associated spending, or a total visitor spending of$3.9 million annually. Further, the study projects about 40 percent of the 57,600 visitors would seek overnight stays, generating 5,100 paid hotel stays in the local area annually. Regarding fiscal impacts,the study projects$34,000 in annual tax revenue to Spokane Valley. Projected(expected to participate) Total Overall Attendance 57,600 Attendees who traveled 50 miles or more to attend Total 23,040 Of total, attendees who traveled from another state or country 6 Attendees who stayed overnight Paid accommodations 5,100 Unpaid accommodations 17,940 Paid Lodging Nights* *one lodging night=one or more persons occupying one room for the night. _ 5,100 VI. CONSIDERATION OF CITY COUNCIL GOALS AND PRIORITIES 1. Council desires to direct awards toward funding new and innovative projects, activities, events or festivals that will distinguish Spokane Valley as a tourism destination and result in increases to Spokane Valley tourism. As part of this goal, Council will use lodging taxes for the purposes allowed in State law. a. This project is an allowed use under State law as it is capital expenditures of a tourism related facility owned and operated by a municipality 2. Council will emphasize the utilization of funds for capital expenditures to develop tourism destination facilities or venues within the City of Spokane Valley as a means of drawing additional visitors to the City (recognizing that this option is limited to facilities owned by a municipality or public facility district). Council would like to move in the direction of allocating a majority of lodging taxes toward this purpose. a. This is a capital project for a new Expo Center building.This is in alignment with Council goals and discussions regarding tourism in the City of Spokane Valley. 3. Council recognizes that lodging nights are an important measure of a successful event or marketing program and will place higher consideration on events or programs with a demonstrable history of increasing overnight stays. Council may also take into consideration to a lesser degree the economic impact of all major components of our tourism-based economy including shopping, dining and overnight visits. a. This project is projected to generate significant overnight stays in the City as well as generate additional traffic for retail businesses and restaurants. Events at the Spokane County Fairgrounds have a long history of generating tourism and hotel nights in the City. 4. Council will take into consideration revenues derived from lodging sources within Spokane Valley received by applicants from other municipal entities and agencies such as the Spokane County Tourism Promotion Authority and Spokane Public Facilities District. a. This project does not currently have any funds from other local tourism related revenues. 7 5. An award to any particular applicant cannot be greater than the dollar amount requested in that applicant's application. a. This project is requesting all revenues and allocations in Fund #104— Hotel/Motel Tax—Tourism Facilities Fund. Fund#104 was created by City Council to account for the City's 1.3 percent lodging tax, and those funds are dedicated solely for capital expenditures for acquiring, constructing, making improvements to or other capital expenditures for tourism-related facilities. Council has authorized staff to apply for these lodging tax funds for the construction of the new Expo Center building. VII. PROJECT BUDGET GRANT AMOUNT CATEGORY REQUESTED MATCH* TOTAL To be filled out by Public/Municipal Agencies: 1. Municipality tourism marketing $ $ $ 2. Municipality event and festivals $ $ $ $2,986,573 in Fund #104 reserves plus future revenue collections in and allocations 3. Municipality facilities (operations and to Fund#104 until the project capital) is completed $1,750,000 $10,000,000 To be filled out by Non-Profit Agencies: 1. Non-municipal entities promoting and advertising tourism $ $ $ 2. Non-municipal entities for marketing and operating events and festivals $ $ $ 3. Non-municipal entities for operations of tourism-related facilities owned by non-profit organizations $ $ $ TOTALS See Above $1,750,000 $10,000,000 8 The City is continuing to search for other grants and funding opportunities for this project and our match of$1,750,000 will allow the City and County to begin the design process for the new facility. VIII.ATTACHMENTS 1. Copy of non-profit status is not applicable as the City is a municipality. 2. See attachment#2—Budget Summary 3. See attachment#3—Council Meeting Minutes, August 10, 2021 4. See attachment#4--City of Spokane Valley Councilmembers and Principal Staff 5. See attachment#5—Co-Sponsors and Letter of Support CERTIFICATION The applicant here certifies and affirms: 1. That it will abide by all relevant local, state, and federal laws and regulations. Without limiting the foregoing, no individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement in violation of local,state, or federal law. 2.That it has read and understands the information contained in this Grant application and will comply with all provisions thereof. Certified By: (signature) A1192-- (print or type name) John Hohman Title: Deputy City Manager, City of Spokane Valley Date: Oct. 1, 2021 9 Attachment #2: 2021 Budget Summary (at fund level) 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 34,862,811 45,451,419 80,314,230 47,277,766 33,036,464 Street Fund 101 556,285 5,567,200 6,123,465 5,567,200 556,265 Paths&Trails Fund 103 23,115 8,900 32,015 0 32,015 Hotel/Motel Tax-Tourism Facilities Fund 104 2,927,945 690,840 3,618,785 0 3,618,785 Hotel/Motel Tax Fund 105 521,240 352,000 873,240 708,240 165,000 Solid Waste 106 526,650 1,737,000 2,263,650 1,737,000 526,650 PEG Fund 107 122,255 79,000 201,255 73,000 128,255 Affordable&Supportive Housing Sales Tax 108 144,750 193,000 337,750 0 337,750 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,500,000 0 5,500,000 0 5,500,000 Winter Weather Reserve Fund 122 528,736 1,900 530,636 500,000 30,636 LTGO Bond Debt Service Fund 204 0 1,043,850 1,043,850 1,043,850 0 REET 1 Capital Projects Fund 301 1,238,567 1,025,000 2,263,567 1,224,673 1,038,894 REEF 2 Capital Projects Fund 302 4,055,658 1,025,000 5,080,658 3,698,125 1,382,533 Street Capital Projects 303 67,402 8,876,315 8,943,717 8,876,315 67,402 Park Capital Projects Fund 309 95,362 1,205,680 1,301,042 1,120,305 180,737 Civic Facilities Capital Projects Fund 310 856,285 3,100 859,385 0 859,385 Pavement Preservation Fund 311 4,209,098 4,146,400 8,355,498 4,726,350 3,629,148 Capital Reserve Fund 312 7,753,610 100,000 7,853,610 2,050,524 5,803,086 Railroad Grade Separation Projects Fund 314 765,548 13,361,980 14,127,528 13,796,320 331,208 65,055,297 84,868,584 149,923,881 92,399,668 57,524,213 Estimated Estimated Beginning i 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 1,366,693 155,400 1,522,093 140,000 1,382,093 Risk Management Fund 502 276,004 425,000 701,004 425,000 276,004 _ 5,170,741 5,217,445 10,388,186 5,569,116 4,819,074 Total of ail Funds 70,226,038 90,086,029 160,312,067 97,968,784 62,343,283 10 Attachment#3: Meeting Minutes MINUTES City of Spokane Valley City Council Regular Formal Meeting Tuesday,August 10, 2021 Mayor Wick called the meeting to order at 6:00 p.m. The meeting was held in City Hall with Council,staff and some members of the public participating in person; and some members of the public participating remotely via Zoom meeting. Attendance: Councilmembers Staff Ben Wick, Mayor Mark Calhoun, City Manager Brandi Peetz, Deputy Mayor John Hohman, Deputy City Manager Pam Haley, Councilmember Cary Driskell,City Attorney Tim Hattenburg Councilmember Chelsie Taylor, Finance Director Rod Higgins, Councilmember Bill Helbig, City Engineer Linda Thompson, Councilmember Morgan Koudelka, Sr. Admin. Analyst Arne Woodard,Councilmember John Bottelli,Parks,Rec, Facilities Director Erik Lamb,Deputy City Attorney Marty Palaniuk, Planner Gloria Mantz, Engineering Manager Christine Bainbridge, City Clerk INVOCATION: Pastor Mike Szott of Living Hope Community Church gave the invocation. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. 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 amend the agenda to add a new item, motion to purchase real property; this will occur right before the Consent Agenda. It was then moved by Deputy Mayor Peetz,seconded and unanimously agreed, to approve the amended agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: nfa COMMITTEE, BOARD, LIAISON SUMMARY REPORTS Councilmember Thompson: reported that she attended some National Night Out parties where there were great conversations and lots of games and opportunities to talk about the new legislation impacting law enforcement; said she attended the Farmers Market;went to the Spokane Regional Transportation Council (SRTC) orientation and said they are getting ready for their new executive director; said she is on the AWC (Association of Washington Cities)Board and they received word that AWC's CEO Peter King announced his retirement after 45 years with the AWC. Councilmember Higgins: said he also attended some National Night Out parties; and via zoom, attended the Aging and Long Term Care meeting, and that based on their membership survey, they will probably continue meeting via zoom; and that part of the Aging and Long term Care,said that the dementia resource catalyst group received $375,000 to be allocated among their participating five counties and that they also have rent increase vouchers to help with the rents that have increased sharply; that the vouches will be financed by American Rescue Plan funds that have not yet been spent; said the Long Term Care group continues with their move to North Point,which should be completed within the next few months; and said he attended the fireball tour this afternoon in Spokane Valley. Council Meeting Minutes, Formai: 08-10-2021 11 Approved by Council: 08-24-202 Councilmember Haley: mentioned that STA (Spokane Transit Authority) does not meet in the month of August; said there have been numerous mails and texts between STA members because of the new legislation dealing with law enforcement; said there can't be Limited Commission Officers, which means the security with STA can no longer have a limited commission; that they are uncertain of all the ramifications of that but some of it includes the security officers can no longer carry pepper spray or handcuffs and that those security officers have been a big help on the buses and on the plaza in keeping the number of assaults and crimes down; said she attended the Continuum of Care meeting and that she is on the grant approval committee, and that they are going through the steps of scoring grant requests;said they are still having trouble getting housing for the people who want housing due to lack of availability. Councilmeinber Woodard:said that he also attended several National Night Out parties;went to the fireball tour today and said the company will have about 800 new employees per shift, and that's during their slow time. Councilmember Hattenburg: mentioned he too attended the tour today and that the building is huge and could likely fit about 12 football fields in it;said he attended some National Night Out gatherings,and there was a lot of talk about not tying the hands of police officials; said lie attended a capital kickoff for a project for a performing arts center, which would be Located in the Mirabeau Park area by the Tru Hilton;that they are going to purchase five acres and have so far raised about$6 million out of a needed $25 million which they hope to raise through endowments,grants,and private donations,that this project will be about three years or more in the making, and said that this group is not affiliated with the City of Spokane Valley. Deputy Mayor Peetz: said she attended the Chamber Board meeting where they had talked about having incubator space in their new building, but decided against that and are instead, looking for tenants; she attended the Regional Transportation meeting; went to the tour of Ridgeline High School; participated in National Night Out; went to the Government Action Committee where it was learned our unemployment rate is back to pre-pandemic levels; said they talked about the upcoming long-term care which will be implemented soon; and said she attended the Fireball tour. MAYOR'S REPORT Mayor Wick reported that he attended some National Night Out parties, went to the fireball building tour which he said included some interesting technology; attended the SRTC meeting and mentioned that the new director starts Monday, and that they also chose new legal counsel; and he reminded everyone of the Farmers Market held Friday evenings.at CenterPlace. • PROCLAMATION: n/a GENERAL PUBLIC COMMENT OPPORTUNITY ill: Mayor Wick explained the process and invited public comment. There were no comments offered, either via Zoom or in person. New Item: Motion to purchase real property. It was moved by Deputy Mayor Peetz and seconded to authorize the City Manager to finalize and execute any paperwork necessary to purchase the real property whose sheet address is 12614 East Sprague Avenue, Spokane County,parcel number 45222.0313, consistent with the terms set forth in the purchase and sale agreement and any adc/endwns, executed by the parties on or about July 29, 2021, the purchase price is $2,225,000 plus normal costs associated with a transaction of this nature. City Attorney Driskell explained that the property in question is the former White Elephant building, and said the property should secure ample space for law enforcement well into the future. Mayor Wick invited public comment; no comments were offered. Mr. Driskell also noted there are no immediate plans for the building, but that a space analysis will be conducted. Vote by acclamation: In favor: unanimous. Opposed: none. Motion carried Council Meeting Minutes, Parma]: 08-10-2021 12 Approved by Council:08-24-202 l NEW BUSINESS: 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 Akelyda. a. Approval of Claim Vouchers on Aug 10,2021,Request for Council Action Form: $1,942,393.99 b. Approval of Payroll for Pay Period Ending July 31,2021: $587,014.80 c. Approval of July 20, 2021 Council Meeting Minutes, Study Session Format d. Approval of July 27,2021 Council Meeting Minutes, Formal Format It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the Consent Agenda. 2. Second Reading Ordinance 21-010 Batch Text Amendments—Marty Palaniuk After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Peetz and seconded to approve Ordinance No. 21-010 as proposed. Planner Palaniuk explained that the purpose of this ordinance is to relocate the regulations governing cargo containers, and add a reference to the R-4 zone in applicable sections of the zoning code. Vote by acclamation:In favor: unanimous. Opposed: none. Motion carried. 3. Motion Consideration: Council Goals&Priorities for Use of Lodging Tax—Chelsie Taylor Finance Director Taylor noted there are two motions,to be taken one at a time, (1) It was moved by Deputy Mayor Peetz and seconded to approve the Council goals and priorities for the use of lodging tax revenues as written. Finance Director Taylor explained that these goals and priorities were presented to Council as an admin report July 20, and there have been no changes. There were no public comments. Vole by acclamation;In favor:unanimous. Opposed: none. Motion carried. (2) It was moved by Deputy Mayor Peetz and seconded to authorize staff to submit an application to the LTAC for a new building at the Spokane Fair&Expo Center using amounts in the Hotel/Motel'fax-Tourism Facilities Fund#104. Director Taylor stated that also at that July 20 Council meeting, the question arose about the process for bringing forward an application for the City to use the funding in the Hotel/Motel Fund 104, and after discussion,staff concluded that an application could be made during the same LTAC (Lodging Tax Advisory Committee)meeting in October when the Committee considers the awards for the 2% lodging tax;she added that if this motion passes,staff will start working on an application to get before the LTAC, and she stated that we would want to tie up all the $2.8 million as well as any future revenues until the building is completely funded. There were no public comments. Vote by acclamation: In favor: unanimous. Opposed: none. Motion carried, GENERAL PUBLIC COMMENT OPPORTUNITY {21: Mayor Wick invited public comment. It was noted that no one had signed up viz zoom to comment. In person comments:Mr. John Harding,Spokane Valley: spoke about the situation with police officers and that the legislature has tied the hands of the law enforcement officers; mentioned about whether this was being negotiated with the unions;said we need to look at ways to enhance our enforcement situation now to help an officers better perform their duty; said he also feels it is value well spent to have a K9; and that he would also like to look at drones as they are safe and efficient ways to inspect an area from a distance; adding that he also understands that GPS technology exists for identifying where shots have been fired, • ADMINISTRATIVE REPORTS: 4, Spokane County Stabilization Center Briefing—Cary Driskell,Morgan Koudellca City Attorney Driskell introduced Spokane County consultant Ariane Schmidt, of Integrate Technology, and Pioneer human Services Regional Director Dan Sigler. Via his PowerPoint presentation, Mr Sigler talked about the Spokane Regional Stabilization Center (working title MHCSF aka Mental Health Crisis Stabilization Facility); he mentioned that this would be a pre-booking jail diversion option for eligible individuals, which will be located at 1302 W Gardner Avenue; he noted the operating model, showed the floor plan design, and went over the estimated timeline showing the facility opening in October;and it was Council Meeting Minutes,Formal: 08-10-2021 13 Approved by Council: 08-24-2021 noted the more open floor model is more safe. Ms. Schmidt stated that there are two contracts; she explained that the annual Use Occupancy Agreement they have with Spokane County, and the Operating Contract they also have with Spokane County, means it is not necessary for any additional interlocal agreements; said that Pioneer will prepare a budget based on the prior year, which of course the first year being different; said they are an target with the budget proposal,and this will not require any debt nor any general county fund to be used in the capital portion of this facility.Ms. Schmidt said that the dedicated fee has been removed, and said this will be a "free to come facility for law enforcement officials;" said they are identifying funding which won't require that municipality fee; she also noted that judges won't really know if a person is in crisis as this all occurs pre-booking,which means a first appearance or public defender won't be necessary as this will be a true diversion program; that officials will write a field report and note when an individual is eligible and chooses to come to this facility; and again said judges won't need to be involved; and she added that this will be funded completely without a commitment of Spokane Valley, so it would be free to use. In response to Mr. Calhoun's question about revenues, Mr. Sigler said there is a lot of investment in state legislature with behavior health; she mentioned managed care organizations,federal mental health, and block grant funding,with some of those designated specifically for this project. 5, Interlocal Agreement Fire District 8, Ponderosa Park Property—Cary Driskell City Attorney Driskell explained about the background of this agreement and how it ties in with the City's recently completed acquisition from Central Valley School District, of approximately 17.7 acres of vacant property; and of previous discussions with the Fire District about their desire to build a new, larger facility that better meets their needs,including space for some training. There were no objections to bring this back next week for a motion consideration. 6. Argonne/Montgomery Construction—Gloria Mentz,Bill Helbig City Engineer Helbig and Engineering Manager Mantz went over the background of this construction project at this busy area,and of some oftheir obstacles experienced along the way;she explained the project design and what will be needed for traffic control; she mentioned their various ways of doing public outreach, and of the tight project schedule, along with construction delays due to material procurement issues. Council said they appreciated hearing this report. 7. Tourism Study Update Plantes Ferry—John Hohman Deputy City Manager Hohman explained that the last time this was before Council was May, 2020, when Council was given an update on the project proposals and in the fall of 2020,the Fairgrounds Building was added to the 2021 State Legislative Agenda;and that the City was awarded$750,000 toward the completion of the building.Mr.Hohman noted that staff was also meeting with Central Valley School District to discuss the property adjoining the new Ridgeline High School; said over subsequent conversations, the available property for sports field development was significantly reduced due to other district needs; and that discussions have also continued with Spokane County regarding Plantes Ferry Park. Mr. Hohman noted that upon analyzing any project, one of the components was it should have the ability to become self- sustaining. As shown on the PowerPoint slides, Mr. Hohman went over the details of the 2016 Sports Complex study as well as findings, which showed that a 12 triangular field facility for Plantes Ferry and the Ridgeline High School, would be underused for the foreseeable future. Mr. Hohman went over some of the revised plans for Plante's Ferry which would be developed by Spokane County, as well as the financial analysis which Council has previously seen.Mr.Hohman also mentioned that the Plantes Ferry fields would be a pay-as-you-play concept. Council discussion included comment from Deputy Mayor Peetz that she wants to look at all options, including partnership with the County or perhaps other entities. Councilmember Haley said she opposes borrowing money then still being faced with a multi-million dollar annual deficit; said she feels Council needs to commit to the Fairground Building; that in speaking to the County Assessor's office, there are people who can't pay their property tax,so we don't want to spend money on things that will put a hardship Council Meeting Minutes, Formal: 08-10-2021 14 Approved by Council: 08-24-202 I on citizens.Councilmember Thompson said she would like to explore ways so everyone can play, but there doesn't seem to be a high enough percentage of our own community to support that; and she mentioned there are other options like maybe the property on Flora, or the River Loop. Councihnember Woodard said he is concerned Council is spreading itself too thin as there other projects that need to be completed. Councilmember Higgins said he agrees with Councilmember Haley and feels this price is high, and we are already stretched thin,Mayor Wick mentioned that we still haven't engaged the public on this; that he has seen the community come together for the HUB;that there are different grant programs and opportunities; and maybe we need a rnasterplan before we can be competitive for those grants; that planning phases takes a long time,and maybe the hoteliers-would contribute more;said the sports complex at Plantes Ferry makes the most sense, but maybe more talk is needed about planning. Councilmember Ilattenburg agreed that he would like to see how strongly the public feels about this and perhaps Council needs to look at the feasibility study. Councilmember Haley said she is not saying take it off the table; but we have property we purchased that we need to do things with, like the Greenacres Park; and she mentioned Browns Park is very much used and they don't have to pay to play; said she is not in favor of borrowing money to put into a business we know will lose money as that is not fair to the citizens. Deputy Mayor Peetz agreed there are many projects, and feels Plantes Ferry could be done in phases; said she is not asking for a definite yes or no on this project, but likes the idea of going to the public to see what they want. Regarding the idea of doing a study now, there was apparent Council consensus to just let this sit for a while and see how things move with the economy and how the citizens are doing, and maybe think about a study in the future. 8. Vehicle Replacement—.John Holunan Mr. Holtman explained about the current condition of our 2006 Dodge Dakota, and that staff is seeking • Council consensus to advance the purchase of an F150 vehicle in the 2021 budget year even though once the order is placed,we will likely not get the vehicle before 2022.There was Council consensus that staff proceed as requested. 9. Advance Agenda—Mayor Wick There were no suggested changes to the Advance Agenda. CITY MANAGER COMMENTS Mr. Calhoun had no additional comments. It was moved by Councilmember Woodard, seconded and unanimously agreed to adjourn. The meeting adjourned at 8:00 pan. ATr T. UP , • Ben Wick, Mayor let, 1 Kristine Bainbridge, City Clerk Council Meeting Minutes,Formal: 08-10-2021 15 Approved by Council: 08-24-2021 Attachment#4: Organization Board of Directors & Principal Staff 00000000000000000000000000000000009o0000*000000000oo*00000000 a a O 0 O 0 0 0 O e O 0 0 O City Council Members o O 0 O 0 O 0 O s 0 o o O 0 O 0 o g it o 4 Ben Wick, Mayor o 4 Position#4 0 0 f I4 • (;f ice' - i - 0 O i/'=-__. - ' j. 0 4 Rod Higgins Brandi Peetz, Deputy Mayor Tim Hattenburg o Position#1 Position#2 Position#6 o 0 O O o o . „..,, 0 0 O 0 O y 3 ! o d Arne Woodard Pam Haley Linda Thompson <' 4 Position#3 Position#5 Position#7 4 0 4 O 0 O 0 0 0 a Staff a 0 h o Mark Calhoun, City Manager o O 0 O 0 o John Hohman, Deputy City Manager o O 0 • Chelsie Taylor, Finance Director O 0 o Mike Stone, Parks & Recreation Director o O 0 o Cary Driskell, City Attorney 0 0 o William Helbig, City Engineer o aChristine Bainbridge, City Clerk a O 16 0 O 0 44000**44404 00000040004044400000000000000000000000,00040.40 O0 Attachment #5: Co-Sponsors The following organizations have supported the construction of a new Expo Center building through inclusion in their Legislative Agendas for 2021. Greater Spokane Incorporated Spokane County GREATER 44 ilk L iaiirl Spokane County WASHINGTON Greater Spokane Valley Chamber of Commerce Spokane Valley Fire Department GREATER SPOKANEIC prlE �, � VALLEY 4014p. f �; � '', CHAMBER OF COMMERCE FIRE DEPT. Visit Spokane Spok$ne 17 S p 0 ksne May 21, 2021 City Councilmembers City of Spokane Valley 10210 E. Sprague Avenue Spokane Valley, WA 99206 RE: Support for the Spokane County Regional Expo Expansion Dear Mayor and Members of City Council: We are writing to express our support of the Spokane County Regional Expo Expansion project. Visit Spokane is an organization committed to making the greater Spokane region better through the power of tourism. The proposed project is a great opportunity to maximize our region's existing assets and to leverage them into a greater experience for our businesses, residents, and tourists. The proposed expansion project will provide additional capacity while adding much needed restaurant and conferencing space to an already busy Fair & Expo Center. As the City of Spokane Valley and Spokane County work together to develop this project, Visit Spokane will continue to coordinate with your team to provide the necessary support to help deliver this project. Kindest regards, L-7 .. vnG edit c L Dean Feldmeier Meg Winchester, CMP Chairman, Board of Directors President & CEO Visit Spokane Visit Spokane 18 creative POB 559 • Spokane, WA 99021 • i': 509.624,1341 T: 800.662.0084 • VisitSpokane.com nature CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16,2021 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: 2022 Annual Comprehensive Plan Amendment(CPA)Docket GOVERNING LEGISLATION: The Growth Management Act(GMA)RCW 36.70A PREVIOUS ACTION TAKEN: None BACKGROUND: The GMA allows local jurisdictions to consider amendments to their Comprehensive Plan once each year. The City codified this process in Section 17.80.140 of the Spokane Valley Municipal Code (SVMC). Consistent with state law and the SVMC, staff published notice on August 20 and 27, 2021 notifying the public of the annual amendment process and that the City would accept applications for the 2022 cycle through November 1,2021.The notice was also sent to all agencies,organizations and adjacent jurisdictions that may have an interest in amending the comprehensive plan. CPAs are divided into two categories —map amendments and text amendments (including charts, tables and graphics).CPAs may be privately initiated or proposed by City Council,Planning Commission or staff. This year,there are four CPA applications: one privately initiated map amendment, and three city initiated map amendments. As part of the annual comprehensive plan amendment cycle, the City Council is presented the proposed amendments that may be considered for this year's amendment cycle. This process known as docketing, provides the City Council the opportunity to remove items from the docket. Tonight, staff will present and discuss the 2022 Comprehensive Plan Docket. On November 23, 2021, Council will consider approval of the Docket. Items included in the Docket must be considered by Council concurrently so the cumulative effect of the amendments can be determined. All considered amendments will be thoroughly analyzed using the criteria set forth in SVMC 17.80.140H. This analysis will be compiled in a staff report for the Planning Commission to formulate their recommendation to Council. The Planning Commission will also hold a public hearing to allow for public comment on the proposed amendments. Council will take the final action to approve, deny or modify the proposed amendments. OPTIONS: Council consensus to proceed with the proposed 2022 Comprehensive Plan Docket as presented or with items removed, for motion consideration at the November 23,2021 Council meeting; or take other action deemed appropriate. RECOMMENDED ACTION OR MOTION: Council discretion BUDGET/FINANCIAL IMPACTS:N/A STAFF CONTACT: Mike Basinger,AICP,Economic Development Manager and Chaz Bates,AICP, Senior Planner ATTACHMENTS: 2022 Comprehensive Plan Docket; Presentation Exhibit 1 City of Spokane Valley 2022 Comprehensive Plan Amendment Docket PRIVATELY INITIATED COMPREHENSIVE PLAN AMENDMENTS File Number Map or Text Summary of Amendment CPA-2022-01 Land Use Map A request to change the comprehensive plan designation and zoning for parcels 45204.1436 and 45204.1435 (1.03 acres) Single Family Residential (SFR) to Multifamily Residential (MFR). CITY INITIATED COMPREHENSIVE PLAN MAP AMENDMENTS File Number Map Summary of Amendment CPA-2022-02 Land Use Map Change land use designation and zoning for parcel: 55073.0458 (0.45 Acres) from Single Family Residential to Parks and Open Space. CPA-2022-03 Land Use Map Change land use designation and zoning for parcels: 44041.0104; 44041.0103; 44041.0102; 44041.9048; 44041.9046; 44041.9007 (17.64 acres) from Single Family Residential to Parks and Open Space. CPA-2022-04 Bike and Add north river loop trail. Pedestrian map 2022 Comprehensive Plan Docket City Council Administrative Report November 16, 2021 Chaz Bates, AICP, Senior Planner Spokane jValley® Annual Comprehensive Plan Amendment Process Initiated by: COMMUNITY AND PUBLIC WORKS �V,tley DEPARTMENT Property owners/representatives Citizens, agencies, neighborhood NOTICE OF CITY OF SPOKANE VALLEY'S ANNUAL COMPREHENSIVE PLAN AMENDMENT CYCLE CityThe City of Spokane Valley is providing notice that the application window for the 2022 Comprehensive Plan Amendment cycle will close on November 1,2021. to Application deadline November 1 Completed nsideeddcaingte202am received by5:00 .A.on November a after be considered during the 2022 amendment cycle.Applications received after November 1,2021,will be registered for consideration for the next amendment cycle in 2023.All proposed amendments to the Comprehensive Plan require a Notice published 60—days prior pre-application conference prior to submitting an application. The City of Spokane Valley's Comprehensive Plan is the primary policy document , organizations, that governs how the City will accommodate and respond to the growth of the Notice sent to agencies community over time. The annual amendment cycle provides the opportunity to propose changes to the and adjacent jurisdictions Comprehensive Plan to address changing land use conditions or emerging issues. Proposed amendments will be subject to review and a public hearing by the Spokane Valley Planning Commission before recommendations are made to the Pre-a pp required City Council. For more information about the comprehensive plan or application materials please visit www.spokanevalley.org/cp or contact Chaz Bates,Senior Planner at Complete a p p l i c a t i o n(s) are docketed (509)720-5337 or cbates@spokanevalley.org. 11/16/2021 r-uiministrativ 2 Comprehensive Plan Docket 2 Annual Comprehensive Plan Amendment Process CityCouncil Planning CityCouncil Commission Docket Applications Applications pp • Admin Report • Study Session • Administrative Report • Action on docket • Public Hearing • First Reading • Deliberation and • Second Reading Recommendation 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 2022 Comprehensive Plan Amendment Docket File Number Location Type / Who Description CPA-2022-01 10506 E 10th Map / Private Change 1.03 acres from SFR to MFR CPA-2022-02 17105 E Montgomery Map / City Change .45 acres from SFR to P/OS CPA-2022-03 44th and Bates Map / City Change 17.64 acres from SFR to P/OS Bike and Pedestrian CPA-2022-04 Map Figure 27 Map / City Add proposed north river loop trail to Figure 27. 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket Privately Initiated Map Amendment - CPA-2022-01 a b I 1 1 1 1 I r Applicant: Land Usett El E 9th Ave E 9t A v€ Solutions Application Area Owner: Sunshine Health EIOthv< E10th Ave Facilities i Amendment: Change from 'o c TEFSIBPF_G m Single Family Residential Mfr Ave m (SFR) to Multiple Family E12iAv Residential (MFR) i Legend -CM Li=MFR- PC'S E13th Ave -I Mu - RC -IMU -NC SFR 11ff] N� © so w9 �caomo 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 5 CPA-2022-01 - Pre-application Analysis i _ , i ,_ , -7 „. , ti, ,,,' „,-__ _ _ __ _,, Expands the MFR by 1.03 ac 104 J No critical areas :�1 . � ; = � � � Supports redevelopment off-' Y vacant properties k Supported by transportation network =Immo" al Compatible with adjacent lacy' yt 5i i.' y �` �:'sa uses _ , Increasin need for seniors € SA. -- _ =_ g and assisted living facilities 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 6 City Initiated Map Amendment - CPA-2020-0002 . _ .,---J- ii _______----- Applicant: Spokane Valley ,,0a Owner: Spokane Valley (under Application Area contract °WA state Pis- 001er9 py e ,! _u_ nialTrail tt Amendment: Change from Single t�"°"' Family Residential (SFR) to Parks, Recreation and Open Space11111(P/OS) E'L t ietd_ LW. Legend ■ -Il I M U- FR-1 PUS MU -RC ` _IMU _NC SFR E Indiana Ave N © SO SW 2O0 9O9 AOO f 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 7 CPA-2022-02 - Pre-application Analysis _. , , , ,, ,, . Expands the P/OS by .45 ac .. - No critical areas ' Area identified in Park and Recreation Master Plan Supports Centennial Trail access and potential river " loop trail � ."s4A r4.1,t r' 1 3 g r t Compatible with surrounding uses • 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 8 CPA-2020-03 - City Initiated Map Amendment E44thAve Applicant: Spokane Valley Owner: Spokane Valley - 67horpe Amendment: Change from Single - r Rd Family Residential (SFR) to Parks, 4 h Recreation and Open Space14 4 So (P/OS) _E C4 47th r E47thAve h I I I Application Area IIILegend - i �� -cm-MFR-POS $,6' -1 M U -RC 4,d -IMU -NC SFR N i O 50 lOO ',OO O0 AO F£E[ 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 9 CPA-2023-03 - Pre-applicat ion Analysis ...„. „., vir-- ,..,.., ,--,-: ,, :,,,.,-,,,t-. . , 4 'K 1 z..•x. * -r Expands the P/OS by 17.64 ac `i .- 3 Supports Park Level of Service Newly acquired property for parks Provides park space to the 4 C^ >? was y 4, rrr"� df' i� ; neighborhood 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 10 CPA-2020-04 - City Initiated Map Amendment ._. Spokane Valley River Loop Trail A p p I i ea n t: Spokane Spokan � FUNDING REQUEST.$16.5 million ill I The Spokane Valley River Loop Trail.a paved non-motorized trail along the Spokane River's north bank that would connect Plante's Ferry Sports Complex to two city regional parks.The proposed trail is approximately five miles long and a Sp Va I I ey Spokane'Valley erg recommended project in the city's 2019 Parks and Recreation Master Plan.The trail would connect to the Centennial Trail with 504_720.5000 two pedestrian bridges and improve access to the Spokane River. SPOKANE VALLEY - .� RIVER LOOP TRAIL 1 I6' Owner: Spokane Plu - - - - - - ; yflV ATrve-rnile fnon-motorized}paved g- , gporm scenic haS that would serve Coy- — - u • �.„' VlA/�//yyam� I I eye allo ,runners and walkers,and !I'll: alloww access to the dyers north • side for fishermen and whitew E�AYE. ater : enthusiasts. FLORA ROAD c .._.`�`-Ytt `' PARK PROPERTY Amendment: Amend qk : - E • _71 - A46-acre property envisioned to • i , -1. s' ^i MI include nature trails and other park 3 i, facilities along the river's.northern '^ ''''''''`Z.:" s`' - IIMI I Illlli B SiG bank.A pedestrian bridge spanning • .i. .`?,;fay&e •,fln R" 1 PM mi i . the river would connect the River Figure 27 - Existing - R Loop Trail and niaf r Flora Road Illllill� and the Ceretenniaf Trail I . tr. .w —lllllll■ I� and Recommended " �' `�Yal;� i l I ' I : ! 1 • ": • PEDESTRIAN BRI-.DGES l�'i l ,i _i r ;y,t4 Flora Road F'. Bicycle Facilities ! • �{ r� � 4 ' Pak Property y iM � fr RIVER anP TAAL .r' f PINES ROAD ACCESS • ^ , !'^ '. `E.' -- A new access and parking area • 1 s. '�• { t '_„ .,i --r. • for users of both the Centennial - 1 ;_ �', - . and Spokane Valley River Loop ' •trails.A pedeshian ixidge span- M. •11 L i n e Added fling the Spokane River would connect the two trails. ' °gptt . 5P • i!f 1^ • _.' ` 47.21 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 11 CPA-2022-04 - Pre-application Analysis SPOKANE VALLEY'S Identified in 2019 Park and RIVER LOOP TRAIL Recreation Master PlanSPOKANE VALLEY , Enhances and supports future — mu and ma Gamer.irall park developments PEDESTRIAN BRIDGES- � t1 ;,11 ■ 2aJ I Sib rrl AVM' ,.4-� Maintains consistent amon • g �� y g ; . r wl it - ♦. plans �tt, r��• - m New trail would create 10-mile loop for recreationalists The City of Spokane Valley is developing a PROJECTAMENITIES AND BENEFITS Supports grants and other conceptual plan to construct a five-mile paved trail The new trail on Spokane River's north bank would include on the north side of the Spokane River between two pedestrian suspension bridges-one just south of Plane's Plante's Ferry Sports Complex and Flora Road. Ferry Sports complex and one at Flora Road.These bridges would connect to the Centennial T iI on the tit river bank, funding opportunities song ai°-rr le non-moledl Loonp. heRi've Trail will Prove accessto t i h g holes, ••'.:.- attracts an e.ttnal tralheads and parks.The trail would be accessible at:Mante's ed 25mllon users Ferry,Sullivan Park and future park to be developed on the _ each year.(soulce: city's newly-acquired 46-acre property along the dyer's north JP6Friends ai Can tennial Trail) bank at Flora Road.The oily has yet to determine the trail's economic impact,although it would likely be a destination trail,. boasting tourism. CITY OF SPOKANE VALLEY ESTIMATED COST$16.5 MILLION Sspssmsevarlayees siiiikaanne~ Construction of the trail and bridges is estimated to cost$165 i.70V114ca1ley million.The city will seek state and federal funding to help OZOO v ""V move the project forward IIIIII 11/16/2021 Administrative Report - 2022 Comprehensive Plan Docket 12 Next Meeting Motion Consideration November 23, 2021 stioliane Valley® Administrative Report - 2022 Comprehensive Plan Docket 13 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16,2021 Department Director Approval: Check all that apply: ❑consent ❑old business ❑new business ❑public hearing ❑information ®admin.report ❑pending legislation ❑executive session AGENDA ITEM TITLE: Administrative report - proposed franchise — Yellowstone Pipe Line Company. GOVERNING LEGISLATION: Chapter 35.11 RCW;RCW 35A.47.040. PREVIOUS COUNCIL ACTION TAKEN: None. BACKGROUND: In 1957, Spokane County entered into a 50-year franchise to permit Yellowstone Pipe Line Company (YPL)to construct and maintain an underground pipeline to transport petroleum products from what is now the eastern edge of the City along the BNSF rail corridor to the YPL storage tank facility in Yardley. From the storage tank facility, the pipeline proceeds south through Bettman's Addition to the south border of the City, and then west to the Spokane International Airport and Fairchild Air Force Base. YPL is a consortium owned by three petroleum companies (Exxon Pipeline Holdings, Conoco 66 Co., and Sunoco Pipeline) for the purpose of transporting gasoline, diesel, and jet fuel from Billings,Montana to users west of Billings,including the Spokane Valley area. The original franchise expired in 2007, and the parties began negotiating for a replacement franchise prior to that time. A term of the original franchise called for YPL to maintain liability insurance of at least $5 million, in case of a spill, explosion or other catastrophic event. That amount was likely sufficient at that time but would not be so now. Coincidentally, Spokane's franchise with YPL expired several years prior to the franchise with Spokane Valley. Staff for Spokane and Spokane Valley have talked many times over the subsequent years in an effort to collaborate on common issues of interest or concern when negotiating terms of a new franchise agreement with YPL. These negotiations have taken much longer than anticipated, and a long-time sticking point was how much insurance would be required by the franchises for both cities. Following extensive work on this issue, the proposed franchise contains $100 million in liability coverage broken down between YPL and its ownership companies. It is anticipated that a catastrophic event, such as what occurred in Bellingham in 1999, could result in monetary damage in this range. It is important to note that this does not function as a cap on damages, but is instead the insured amount, and any excess damage above that would be the responsibility of the companies. The parties tentatively agreed to nearly all terms approximately a year ago, however staff did not present this at that time because Spokane was still attempting to resolve several outstanding issues. It is unclear whether Spokane is currently ready to adopt a franchise with YPL. However, Spokane Valley desires to get this finalized so the terms of this proposed franchise are in place, including the significantly increased insurance coverage in the event of a disaster. The proposed franchise is for 25 years, includes $100 million in liability coverage, and has updated requirements for monitoring, detection and response for spills. As with all franchises executed by the City, this one affirms the authority of the City to manage its rights-of-way in the best interest of the community. A route map of the YPL facilities is attached to the ordinance as Exhibit 1. This franchise would not change any requirements for YPL to construct and maintain its facilities with appropriate setbacks for structures, such as businesses and residences,from its underground facilities. OPTIONS: (1) Place on a future agenda for an ordinance first reading; or (2), take other action as appropriate. RECOMMENDED ACTION OR MOTION: Consensus to place on a future agenda for an ordinance first reading. BUDGET/FINANCIAL IMPACTS:None. STAFF CONTACT: Cary Driskell, City Attorney ATTACHMENTS: 1) Draft Ordinance 21-022 petroleum products pipeline franchise with Yellowstone Pipe Line Company; including Exhibit 1: Route map of Yellowstone Pipe Line facilities through Spokane Valley;and 2)Form guaranty relating to insurance. Draft CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.21-022 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY,SPOKANE COUNTY, WASHINGTON, GRANTING A NON-EXCLUSIVE FRANCHISE TO THE YELLOWSTONE PIPE LINE COMPANY TO CONSTRUCT, OPERATE,MAINTAIN,REMOVE,REPLACE, AND REPAIR EXISTING PIPELINE FACILITIES FOR THE TRANSPORTATION OF PETROLEUM PRODUCTS AND BYPRODUCTS WITHIN AND THROUGH THE CITY OF SPOKANE VALLEY,AND OTHER MATTERS RELATING THERETO. WHEREAS, Yellowstone Pipe Line Company (hereinafter "Yellowstone") has applied for a nonexclusive franchise to operate and maintain a petroleum pipeline within and through the City of Spokane Valley(hereinafter("City"or"the City"); 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, 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 for review prior to its passage; and WHEREAS,the Council finds that the grant of the franchise contained in this Ordinance, subject to its terms and conditions,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. Definitions. For the purposes of this franchise and all exhibits attached hereto, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context,words used in the present tense include the future,words in the plural include the singular, and words in the singular include the plural. Words not defined shall be given their common and ordinary meaning. construct or construction-shall mean removing,replacing,and repairing existing facilities and may include, but is not limited to, digging and/or excavating for the purposes of removing, replacing, and repairing existing facilities. Yellowstone Pipe Line Franchise Ordinance 21-022 Page 1 of 16 Draft effective date - shall mean the date designated herein after passage, approval and legal publication of this Ordinance and acceptance by Yellowstone,upon which the rights, duties and obligations shall be in effect and the date from which the time requirement for any notice,extension and/or renewal shall be measured. facilities - shall mean the Yellowstone's pipeline system, lines, valves, mains, and appurtenances used to transport or distribute Yellowstone's petroleum products. franchise - shall mean this franchise including any amendments, exhibits,or appendices. franchise area - shall mean the area within the jurisdictional boundaries of the City where Yellowstone currently has facilities in the pipeline corridor,including any areas annexed by City during the term of this franchise,in which case the annexed area shall become subject to the terms of this franchise. hazardous substance - shall mean any hazardous,toxic,or dangerous substance,material,waste,pollutant, or contaminant. The term shall specifically include petroleum and petroleum products and their by- products,residue, and remainder in whatever form or state. The term shall also be interpreted to include any substance which, after release into the environment, will or may reasonably be anticipated to cause death,disease,injury,illness,behavior abnormalities or genetic abnormalities. maintenance or maintain- shall mean examining, testing, inspecting,repairing,maintaining and replacing the existing facilities or any part thereof as required and necessary for safe operation in the franchise area. operate or operations - shall mean the use of Yellowstone's existing facilities for the transportation, distribution and handling of petroleum products or byproducts within and through the franchise area. pipeline corridor- shall mean the pipeline pathway through the franchise area in which the Yellowstone facilities are located at the time this franchise becomes effective,including any rights-of-way,public places located in the City as approved under City permits issued pursuant to this franchise, and/or easement over and through private property. public properties - shall mean the present and/or future property owned or leased by the City within the present and/or future corporate limits or jurisdictional boundaries of the City. rights-of-way-shall mean the surface and the space above and below streets,roadways,highways,avenues, courts,lanes,alleys, sidewalks,and easements located in the franchise area. Section 2. Grant of Franchise. 2.1 City hereby grants to Yellowstone,a corporation organized and existing under and by virtue of the laws of the State of Delaware, and which is authorized to transact business within the State of Washington, its successors and assigns(as provided in Section 4),the right,privilege, authority and franchise to construct, operate and maintain its existing facilities necessary for the transportation,distribution and handling of any petroleum product or byproduct thereof, liquids and gases, on public rights-of-way and stormwater properties within the existing pipeline corridor passing through the franchise area. 2.2 This franchise is non-exclusive. City reserves all rights to its property, including, without limitation, the right to grant additional franchises, easements, licenses and permits to others, provided that the City shall not grant any other franchise, license, easement or permit that would unreasonably interfere with Yellowstone's permitted use under this franchise. This franchise shall in no manner prohibit the City or limit its power to perform work upon its rights-of-way and public properties, or make any necessary changes, relocation, repair, maintenance, establishment, improvement thereto, or from using any of the Yellowstone Pipe Line Franchise Ordinance 21-022 Page 2 of 16 Draft rights-of way and public properties, or any part of them, as the City may deem fit from time-to-time, including the dedication,establishment,maintenance and improvement of all new rights-of-way and other public properties of every type and description. 2.3 This franchise is conditioned upon the terms and conditions contained herein and Yellowstone's compliance with all applicable federal, state or other regulatory programs that currently exist or may hereafter be enacted by any regulatory agencies with jurisdiction over Yellowstone and that are applicable to the facilities in the franchise area. 2.4 By granting this franchise, the City is not assuming any risks or liabilities. Yellowstone agrees and covenants to,at its sole cost and expense,take all necessary and prudent steps to protect,support,and keep safe from harm its facilities,or any part thereof,when necessary to protect the public health and safety. 2.5 This franchise is intended to convey only a limited right and interest. It is not a warranty of title or interest in City's rights-of way or other public property. None of the rights granted herein shall affect the City's jurisdiction over its property, streets or rights-of-way. 2.6 This franchise does not and shall not convey any right to Yellowstone to install its facilities on,under, over, across, or to otherwise use City-owned or leased properties of any kind, either within or outside the pipeline corridor, other than existing public rights-of-way except with express written permission by the City. 2.7 The limited rights and privileges granted under this franchise shall not convey any right to Yellowstone to install any new facilities without the express written consent of City. 2.8 The parties acknowledge that Yellowstone has facilities on private property and Interstate 90 (I-90) within the City limits,in addition to those on publicly-owned rights-of-way that are subject to this franchise, and that the terms of this franchise do not apply to those facilities located on private property or within the I-90 corridor. A route map of Yellowstone's facilities, including whether located on private or public property,is attached as Exhibit 1. Section 3. Term. Each of the provisions of this franchise shall become effective upon the effective date, subject to Yellowstone's acceptance of the terms and conditions of this franchise and shall remain in effect for 25 years thereafter. Subsequently, City Council may consider renewing this franchise, at the written request of Yellowstone, for an additional 25-year renewal period at any time within two years before the end of the franchise's original 25-year term,unless either party expresses its intention in writing to terminate this franchise at the conclusion of the original year term. Any request for renewal by Yellowstone shall be at least six months before expiration of this franchise. Section 4. Assignment and Transfer of Franchise. 4.1 This franchise shall not be leased, assigned, or otherwise alienated without the express consent of the City by ordinance,which approval shall not be unreasonably withheld. 4.2 No transfer shall be approved unless the assignee or transferee has at least the legal,technical,financial, and other requisite qualifications to carry on the activities of Yellowstone with respect to this franchise. 4.3 Any transfer or assignment of this franchise without the prior written consent of the City shall be void. Yellowstone Pipe Line Franchise Ordinance 21-022 Page 3 of 16 Draft Section 5. Compliance with Laws and Standards. 5.1 In carrying out any authorized activities under the privileges granted herein, Yellowstone shall meet accepted industry standards and comply with all applicable laws of any governmental entity with jurisdiction over the pipeline and its operation. This shall include all applicable laws,rules and regulations existing at the effective date of this franchise or that may be subsequently enacted by any governmental entity with jurisdiction over Yellowstone facilities. 5.2 In the case of any conflict between the terms of this franchise and the terms of City's ordinances,codes, regulations, standards and procedures,this franchise shall govern. Section 6. Construction and Maintenance. 6.1 All pipeline construction, maintenance or operation undertaken by Yellowstone, upon Yellowstone's direction or on Yellowstone's behalf, shall be completed in a workmanlike manner and comply with all applicable state and federal regulations. 6.2 Except in the case of an emergency,prior to commencing any construction and/or maintenance work in the franchise area,Yellowstone shall first file with the City such detailed plans,specifications, and profiles of the intended work as may be required by the City. The City may require such additional information, plans, and/or specifications as are in the City's reasonable opinion necessary to protect the public health and safety during the construction and/or maintenance work and for the remaining term of this franchise. 6.3 All construction and/or maintenance work shall be performed in substantial conformity with the plans, maps, and specifications filed with the City, except in instances in which deviation may be allowed thereafter in writing pursuant to an application by Yellowstone, or in instances of emergency,which shall then be brought into conformity within a reasonable time. 6.4 All pipes and other components of any facilities used in construction and/or maintenance activities within the franchise area shall comply with applicable federal regulations as adopted or amended. 6.5 Except in the event of an emergency, Yellowstone shall provide the City at least 20 calendar days written notice prior to any construction and/or maintenance,or other substantial activity,other than routine inspections and maintenance, by Yellowstone, its agents, employees or contractors on Yellowstone's facilities within the franchise area. 6.6 Work shall only commence upon the issuance of applicable permits by the City, which permits shall not be unreasonably withheld or delayed. However, in the event of an emergency requiring immediate action by Yellowstone for the protection of its facilities,the City's property or other persons or property, Yellowstone may proceed without first obtaining the normally required permits. In such event Yellowstone shall: 6.6.1 Take all necessary and prudent steps to protect,support,and keep safe from harm its facilities, or any part thereof;the City's property;or other persons or property,and to protect the public health and safety; and 6.6.2 Obtain the required permits as soon as reasonably possible, and comply with any mitigation requirements or other conditions in the after-the-fact permit. 6.7 Unless such condition or regulation is in conflict with a federal requirement,the City may condition the granting of any permit or other approval that is required under this franchise, in any manner reasonably Yellowstone Pipe Line Franchise Ordinance 21-022 Page 4 of 16 Draft necessary for the safe use and management of the public rights-of-way or the City's property including,by way of example and not limitation,bonding,maintaining proper distance from other utilities,protecting the continuity of pedestrian and vehicular traffic and protecting any improvements to the rights-of-way,private facilities, and public safety. 6.8 Whenever necessary, after constructing or maintaining any of Yellowstone's facilities within the Franchise Area, Yellowstone shall, without delay, and at Yellowstone's sole expense, remove all debris and restore the surface as nearly as possible to at least as good condition as it was before the work began. Yellowstone shall replace any property corner monuments, survey reference, or hubs that were disturbed or destroyed during Yellowstone's work in the areas covered by this franchise. Such restoration shall be done in a manner consistent with applicable codes and laws, under the supervision of the City and to the City's satisfaction and specifications. The restoration shall be done under a bond in an amount appropriate to guarantee adequate restoration. 6.9 Yellowstone shall continuously be a member of the State of Washington utility locator service under RCW 19.122, and shall comply with all such applicable rules and regulations. Yellowstone shall provide reasonable notice to the City prior to commencing any maintenance or construction under this franchise and additionally to those owners or other persons in control of property in the franchise area when the maintenance or construction will affect access or otherwise impact the property. 6.10 Yellowstone shall comply with line marking requirements specified in 49 C.F.R. §195 and WAC 480- 93-124. 6.11 Upon acceptance of this franchise by Yellowstone, Yellowstone shall file and thereafter maintain at all times with the City a survey depicting the location of the pipeline corridor within the franchise area as well as the approximate location of Yellowstone's facilities within the pipeline corridor along with all other known utilities, landmarks, and physical features. When the City or third parties are engaged in work in the pipeline corridor, or within 50 feet of the pipeline corridor, Yellowstone shall promptly respond to requests to locate the precise position of its facilities. If the project is a City project,Yellowstone shall bear any costs associated with locating its facilities. 6.12 Yellowstone shall provide detailed as-built design drawings showing the size, depth, and location of all pipes, valves, gauges, other service appurtenances and facilities within the franchise area, pursuant to RCW 81.88.080. It is understood that the location of the facilities shall be verified by pot-holing or other type of excavation if exact alignment is required by the City. City agrees that it shall comply with all state and federal laws prohibiting disclosure of Yellowstone's drawings,maps,etc.to any third party. 6.13 Within 30 days of completing any maintenance or construction,or any other substantial activity within the franchise area,Yellowstone shall provide updated and corrected as-built drawings and a survey showing the location,depth and other characteristics of the facilities within the franchise area. 6.14 Nothing in this franchise shall be deemed to impose any duty or obligation upon City to determine the adequacy or sufficiency of Yellowstone's plans and designs or to ascertain whether Yellowstone's proposed or actual construction,testing,maintenance,repairs,replacement,or removal is adequate or sufficient or in conformance with the plans and specifications reviewed by the City. 6.15 Yellowstone shall be solely responsible for workplace safety and safe working practices on its job sites within the franchise area,including safety of all persons and property during the performance of any work. Section 7. Operations,Maintenance,Inspection,Testing.Yellowstone shall operate,maintain,inspect,and test its facilities in the franchise area in full compliance with all federal, state and local laws, regulations Yellowstone Pipe Line Franchise Ordinance 21-022 Page 5 of 16 Draft and standards, as now enacted or hereafter amended, and any other future laws or regulations that are applicable to Yellowstone's facilities,products, and business operations. Section 8. Encroachment Management. 8.1 Yellowstone shall comply with encroachment requirements specified in 49 C.F.R. §195. 8.2 Upon notification to Yellowstone of planned construction involving excavation or any activity by the City or a third party that could abnormally load the pipeline within 50 feet of Yellowstone's pipeline corridor, Yellowstone shall flag the precise location of its facilities before the construction or activity commences, provide a representative to inspect the construction when it commences, and periodically inspect thereafter to ensure that Yellowstone's facilities are not damaged by the construction or activity. 8.3 Upon the City's reasonable request in connection with the design of any City public work project, Yellowstone shall verify the exact location of its underground facilities within the pipeline corridor by pot- holing at no expense to the City. In the event Yellowstone performs said pot-holing, the City shall not require any restoration of the disturbed area in excess of restoration to the same condition as existed immediately prior to the excavation. Section 9. Leaks, Spills,Ruptures and Emergency Response. 9.1 Yellowstone shall establish and maintain during the term of this franchise a system for remotely monitoring pressures and flows across the franchise area. The remote monitoring shall be able to accurately detect pipeline ruptures. 9.2 During the term of this franchise, Yellowstone shall have a written emergency response plan and procedure for locating leaks, spills, and ruptures and shall provide for shutting down valves as rapidly as possible. 9.3 Upon acceptance of the franchise Agreement, Yellowstone shall provide the City online access to its emergency response plan that is updated as needed for any amendments. 9.4 Yellowstone's emergency plans and procedures shall designate Yellowstone's responsible local emergency response officials and a direct 24-hour emergency contact number for control center operator. Yellowstone shall, after being notified of an emergency, cooperate with the City and make every effort to respond as soon as possible to protect the public's health, safety,and welfare. 9.5 Yellowstone shall be solely responsible for all necessary costs incurred by City,county,special district, or state agencies in responding to any rupture, spill, or leak from Yellowstone's facilities, including, but not limited to, detection and removal of any contaminants from air, earth, or water, and all actual remediation costs. This section shall not limit Yellowstone's rights or causes of action against any third party or parties who may be responsible for a leak, spill, or other release of hazardous liquid from Yellowstone's pipeline, including such third parry's insurers. This provision shall not be applicable with respect to any ruptures, spills,or leaks caused by the City's negligence. 9.6 In addition to the notification requirements in the emergency response plan, Yellowstone shall notify City of any uncontained leak,spill or rupture,outside of a vault or pump station,of petroleum product from Yellowstone's facilities within or affecting the franchise area totaling one barrel or more, within one business day of its observation or detection. Yellowstone Pipe Line Franchise Ordinance 21-022 Page 6 of 16 Draft 9.7 If requested by the City in writing,Yellowstone shall follow up this notice within 30 days with a written summary of the event,including,but not limited to,the leak,spill,or rupture's date,time,amount,location, response,remediation, and other agencies Yellowstone has notified. 9.8 In the event of an uncontained leak,spill or rupture from Yellowstone's facilities affecting the franchise area of five barrels or more,where the cause is not reasonably apparent to Yellowstone, and where federal or state regulators do not investigate, the City may demand that the occurrence be investigated by an independent pipeline consultant selected by the City, subject to approval by YPL,which approval shall not be unreasonably denied. Yellowstone shall be solely responsible for paying all of the consultant's costs and expenses incurred in investigating the occurrence and reporting the findings. Yellowstone shall meet and confer with the independent consultant following the consultant's investigation to address whether any modifications or additions to Yellowstone's facilities may be warranted. In cases where federal or state regulators do perform an investigation, Yellowstone shall share, if allowable under applicable law, the results of that investigation with the City within 60 days of Yellowstone receiving it. 9.9 If the independent pipeline consultant selected by the City as referenced in Section 9.8, above, recommends that Yellowstone make modifications or additions to Yellowstone's facilities, Yellowstone shall consider said recommendations in good faith. If Yellowstone declines to follow the consultant's recommendations, Yellowstone shall provide a written report to the City explaining its reasoning for not following said recommendations. The parties agree to comply with the dispute resolution provisions contained herein to resolve any dispute over whether to follow the consultant's recommendations. Section 10. Relocation. 10.1 In the event the City undertakes or approves the construction of or changes to the grade or location of any water, sewer, or storm drainage line, street, sidewalk, or other City improvement project or any governmental agency or any person or entity acting in a governmental capacity, or on the behalf of,under the authority of, or at the request of the City or any other governmental agency, undertakes any improvement project and the City determines that the project might reasonably require the relocation of Yellowstone's facilities, City shall provide Yellowstone at least 180 calendar days' prior written notice or such additional time as may reasonably be required,of such project requiring relocation of Yellowstone's facilities. 10.2 City shall provide Yellowstone with copies of pertinent portions of the plans and specifications for the improvement project. Upon request,Yellowstone shall,at Yellowstone's sole cost and expense,determine and identify for the City,the exact location of its facilities potentially affected by the improvement project. 10.3 Yellowstone may, after receipt of written notice requesting a relocation of its facilities, submit to the City written alternatives to the relocation within 90 calendar days or other timeframe as otherwise mutually agreed, which agreement will not be unreasonably withheld. The City shall evaluate the alternatives and advise Yellowstone in writing if one or more of the alternatives are suitable to accommodate the work that would otherwise necessitate relocation of the facilities. If requested by the City,Yellowstone shall submit additional information to assist the City in making the evaluation. The City shall give each alternative proposed by Yellowstone full and fair consideration but retains full discretion to decide whether to utilize its original plan or an alternative proposed by Yellowstone. In the event the City ultimately determines that there is no other reasonable alternative,Yellowstone shall relocate its facilities as proposed by the City. 10.4 If any improvement project under Section 10.1 is required in the interest of public health, safety, welfare,necessity, as adjudged in the sole discretion of the City,Yellowstone shall make such changes as required herein at Yellowstone's sole cost,expense,and risk. Yellowstone Pipe Line Franchise Ordinance 21-022 Page 7 of 16 Draft 10.5 City shall work cooperatively with Yellowstone in determining a viable and practical route within which Yellowstone may relocate its facilities in order to minimize costs, while also meeting the City's project objectives. 10.6 Subject to and provided that the City strictly complies with the timing requirements of this Section 10, Yellowstone shall complete relocation of its facilities to accommodate the improvement project at least 10 calendar days prior to commencement of the improvement project, or such other time as the parties may agree in writing. If the City or its contractor is delayed at any time in the progress of its work by neglect of Yellowstone or the neglect of those acting for or on behalf of Yellowstone, then Yellowstone shall indemnify, defend and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorneys' fees to the extent arising out of or in connection with such delays, except for delays and damages caused by the City or a third party. This provision may not be waived by the parties except in writing. Section 11. Removal,Abandonment in Place. 11.1 In the event of Yellowstone's permanent cessation of use of its facilities or any portion thereof within the franchise area, Yellowstone shall, within 180 days after the cessation of use, remove its facilities or portion thereof. Alternatively,if allowed by the City,Yellowstone will be allowed to abandon in place that portion of its facilities allowable by the City. Abandonment will require, Yellowstone to secure its underground facilities within the franchise area, removing all petroleum products from the facilities, purging vapors, displacing the pipeline contents with an appropriate inert material, and sealing the ends with a suitable end closure,all in compliance with applicable laws. An exception to the removal requirement described above exists for any facilities or portion thereof installed by Horizontal Directional Drill at a depth greater than 10 feet below ground(HDD). Yellowstone will not be required to remove facilities or portions thereof installed by HDD. Instead,Yellowstone will be allowed to abandon those facilities in place pursuant to the abandonment procedures described above. However,upon notice from City as outlined in Section 10,Yellowstone will remove the portion of abandon facilities that conflicts with the City project covered by this Franchise Ordinance unless it was installed by HDD. Permanent cessation shall be the failure to use the facilities for the transportation of petroleum products for at least 365 days,unless otherwise agreed in writing. 11.2 In the event of the removal of all or a portion of the facilities,Yellowstone shall restore any portion of the franchise area its removal actions affected,to as good of a condition as it was before the work began. Yellowstone may, at its option,restore the affected area to a better condition than it was prior to the work. 11.3 Removal and restoration work shall be done at Yellowstone's sole cost and expense and to the City's reasonable satisfaction. Yellowstone shall be responsible for any environmental review required for the removal of any facilities and the payment of any costs of the environmental review. 11.4 If Yellowstone is required to remove its facilities and fails to do so and/or fails to adequately restore the franchise area as specified in Section 11.2 or other mutually agreed upon action(s),the City may, after reasonable notice to Yellowstone,remove its facilities, restore the premises and/or take other action as is reasonably necessary at Yellowstone's expense. This remedy shall not be deemed to be exclusive and shall not prevent the City from seeking a judicial order directing that the facilities be removed. 11.5 The parties expressly agree that Section 11 shall survive the expiration,revocation,or termination of this franchise. Yellowstone Pipe Line Franchise Ordinance 21-022 Page 8 of 16 Draft Section 12. Violations,Remedies,and Termination. 12.1 In addition to any rights set out elsewhere in this franchise, or other rights it may possess at law or equity, the City reserves the right to apply any of the following remedies, alone or in combination, in the event Yellowstone violates any material provision of this franchise. The remedies provided for in this franchise are cumulative and not exclusive;the exercise of one remedy shall not prevent the exercise of any other,or any rights the City may have at law or equity. 12.2 If Yellowstone fails or refuses to comply with this franchise, or any of its terms or provisions, the damages suffered by the City as a result may include,without limitation,increased costs of administration and other damages difficult to measure. Therefore,the City and Yellowstone agree that liquidated damages up to $1,000 per day,per incident or other measure of violation,may be assessed from the first day of the violation or incident, so long as Yellowstone remains non-compliant. These damages represent both parties' best estimate of the damages resulting from the compliance issue. The imposition of liquidated damages will invoke the dispute resolution provisions as provided in this franchise. The imposition of liquidated damages relates only to administrative costs relating to failure to comply with terms of this franchise, and do not relate in any way to determination or assessment of damages relating to a spill, contamination,fire,explosion,or other incident relating to the transport of petroleum products through the facilities. 12.3 City may also terminate this franchise if Yellowstone materially breaches or otherwise fails to perform, comply with or otherwise observe any of the terms and conditions of this franchise,or fails to maintain all required licenses and approvals from federal, state,and local jurisdictions, and fails to cure such breach or default within 30 calendar days of City providing Yellowstone written notice thereof,or,if not reasonably capable of being cured within thirty 30 calendar days, within such other reasonable period of time as the parties may agree upon. 12.4 This franchise shall not be terminated by City except upon a majority vote of the full membership of the City Council, after reasonable notice to Yellowstone and an opportunity to be heard, provided that if exigent circumstances necessitate immediate termination,the hearing may be held as soon as possible after the termination. 12.5 In the event of termination under this franchise,Yellowstone shall immediately discontinue operation of the pipeline through the franchise area, unless safety and environmental considerations dictate a more scheduled, orderly cessation of operations. Either party may in such case invoke the dispute resolution provisions herein. Alternatively,City may elect to seek relief directly in Superior Court,in which case the dispute resolution requirements shall not be applicable in this limited situation. Once Yellowstone's rights to operate in the franchise area have terminated, Yellowstone shall comply with the franchise provision regarding removal and/or abandonment of facilities. 12.6 City's failure to exercise a particular remedy at any time shall not waive City's right to terminate, assess penalties, or assert that or any other remedy at law or equity for any future breach or default of Yellowstone. 12.7 Termination of this franchise shall not release Yellowstone from any liability or obligation with respect to any matter occurring prior to such termination,nor shall such termination release Yellowstone from any obligation to remove or secure the pipeline pursuant to this franchise and to restore the affected franchise area. 12.8 The parties acknowledge that the covenants set forth herein are essential to this franchise,and,but for the mutual agreements of the parties to comply with such covenants, the parties would not have entered Yellowstone Pipe Line Franchise Ordinance 21-022 Page 9 of 16 Draft into this franchise. The parties further acknowledge that they may not have an adequate remedy at law if the other party violates such covenant. Therefore,the parties shall have the right,in addition to any other rights they may have,to obtain in any court of competent jurisdiction injunctive relief to restrain any breach or threatened breach or otherwise to specifically enforce any of the covenants contained herein should the other party fail to perform them. Section 13. Dispute Resolution. 13.1 In the event of a dispute between the City and Yellowstone arising by reason of this franchise, the dispute shall first be referred to the operational officers or representatives designated by the City and Yellowstone to have oversight over the administration of this franchise. The officers or representatives shall meet within 30 calendar days of either party's request for a meeting, whichever request is first, and the parties shall make a good faith effort to attempt to achieve a resolution of the dispute. 13.2 In the event that the parties are unable to resolve the dispute under the procedure set forth in this section, then the parties agree that the matter shall be referred to mediation. The parties shall mutually agree upon a mediator to assist them in resolving their differences. If the parties are unable to agree upon a mediator, the parties shall jointly obtain a list of seven mediators from a reputable dispute resolution organization and alternate striking mediators on that list until one remains. A coin toss shall determine who may strike the first name. If a party fails to notify the other party of which mediator it has stricken within two business days, the other party shall have the option of selecting the mediator from those mediators remaining on the list. Any expenses incidental to mediation shall be borne equally by the parties. 13.3 If the parties fail to achieve a resolution of the dispute through mediation,either party may then pursue any available judicial remedies, provided that if the party seeking judicial redress does not substantially prevail in the judicial action, it shall pay the other party's reasonable legal fees and costs incurred in the judicial action. Section 14. Indemnification. 14.1 General Indemnification. Yellowstone shall indemnify, defend, and hold harmless the City from any and all liability, loss, damage, cost, expense, and claim of any kind, including reasonable attorneys' and experts' fees incurred by the City, arising from Yellowstone's actions except to the extent of City's negligence, in defense thereof, arising out of or related to, directly or indirectly, the installation, construction, operation, use, location, testing, repair, maintenance, removal, or abandonment of Yellowstone's facilities within the franchise area, or from the existence of Yellowstone's facilities within the franchise area, and the products contained in, transferred through, released, or escaped from said facilities, including the reasonable costs of assessing such damages and any liability for costs of investigation, abatement, correction, cleanup, fines, penalties, or other damages arising under any environmental laws. If any action or proceeding is brought against City by reason of Yellowstone's facilities, Yellowstone shall defend the City at Yellowstone's complete expense, provided that, for uninsured actions or proceedings,defense attorneys shall be approved by City,which approval shall not be unreasonably withheld. 14.2 Environmental Indemnification.Yellowstone shall indemnify,defend,and hold harmless the City from and against any and all liability, loss, damage, expense, actions and claims, either at law or in equity, including,but not limited to,costs and reasonable attorneys' and experts' fees incurred by the City,arising from Yellowstone's negligent or intentional actions except to the extent of the City's negligence,in defense thereof, arising directly or indirectly from (a)Yellowstone's breach of any environmental laws applicable to the pipeline subject to this franchise, or (b) from any release of a hazardous substance on or from said Yellowstone Pipe Line Franchise Ordinance 21-022 Page 10 of 16 Draft pipeline, or (c) other activity related to this franchise by Yellowstone, its agents, contractors or subcontractors. This indemnity includes but is not limited to(a)liability for a governmental agency's costs of removal or remedial action for hazardous substances; (b) damages to natural resources caused by hazardous substances, including the reasonable costs of assessing such damages; (c) liability for any other person's costs of responding to hazardous substances;(d)liability for any costs of investigation,abatement, correction, cleanup, fines, penalties, or other damages arising under any environmental laws; and (e) liability for personal injury,property damage,or economic loss arising under any statutory or common-law theory. Section 15. Insurance and Bond Requirements. 15.1 During this franchise, Yellowstone shall provide and maintain, at its own cost, Commercial General Liability insurance in the minimum amount of$100,000,000.00 United States dollars for each occurrence and in the aggregate, in a form and with a carrier reasonably acceptable to the City,naming City as an additional insured,to cover any and all insurable liability, damage, claims, and loss as set forth in Section 14.1 above, and,to the extent such coverage is reasonably available in the commercial marketplace, all liability, damage, claims, and loss as set forth in Section 14.2 above, except for liability for fines and penalties for violation of environmental laws as otherwise provided below but only to the extent of the risks and liabilities assumed by Yellowstone under this Agreement,. Yellowstone's maintenance of insurance as required by the Agreement shall not be construed to limit the liability of Yellowstone to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. Insurance coverage shall include,but is not limited to,all defense costs. Such insurance shall include,but is not limited to, pollution liability coverage, at a minimum covering liability from sudden and accidental occurrences, subject to time element reporting requirements. Yellowstone is permitted to self- insure a portion of the total amount of insurance required in Section 15.1, above, in an amount up to $25,000,000. Required insurance amounts above $25,000,000 may be provided pursuant to the Guaranty, attached and incorporated herein by reference Yellowstone shall provide and maintain at its own cost Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be at least as broad as Insurance Services Office (ISO) form CA 00 01. Automobile Liability insurance coverage shall be written in a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. All coverages required in this Agreement shall be written on an occurrence basis. 15.2 Yellowstone shall provide the City with a certificate of insurance or letter of self-insurance prior to this franchise becoming effective. Said certificate or evidence of self-insurance shall contain a provision that it shall not be canceled without a minimum of 30 days' prior written notice to the City. 15.3 Yellowstone shall provide the City with a bond executed by Yellowstone or Yellowstone's contractors and a corporate surety authorized to operate a surety business in the state of Washington in a sum as may be set by the City, not to exceed $50,000 as sufficient to ensure the performance of Yellowstone's obligations under this franchise. The bond shall be for any of the work, installation, improvements, construction, repair, relocation, or maintenance authorized by this franchise sufficient to ensure performance of Yellowstone's obligations under this franchise, and is intended to ensure that Yellowstone observe all the covenants, terms, and conditions and shall faithfully perform all of the obligations of this franchise, and to repair or replace any defective work or materials discovered in the City's road, streets,or property. The bond shall remain in effect for the life of this franchise. In the event Yellowstone proposes to construct a project for which the above-mentioned bond would not ensure performance of Yellowstone's Yellowstone Pipe Line Franchise Ordinance 21-022 Page 11 of 16 Draft obligations under this franchise,the City is entitled to require such larger bond as may be appropriate under the circumstances. This bond is in lieu of the requirement in City Code whereby Yellowstone would be required to provide a construction bond for each project in the Franchise Area over the life of the franchise. 15.4 The indemnity, insurance, and bond provisions contained herein shall survive the termination of this franchise and shall continue for as long as Yellowstone's facilities shall remain in or on the franchised areas or until the parties execute a new franchise which modifies or terminates these indemnity, insurance, and bond provision but only to the extent of the risks and liabilities assumed by Yellowstone under this Agreement,. Section 16. Receivership and Foreclosure. 16.1 Yellowstone shall immediately notify the City in writing if Yellowstone files a voluntary petition in bankruptcy, a voluntary petition to reorganize its business, or a voluntary petition to effect a plan or other arrangement with creditors; files an answer admitting the jurisdiction of the Court and the material allegations of an involuntary petition filed pursuant to the Bankruptcy Code, as amended;or is adjudicated bankrupt,makes an assignment for the benefit of creditors,or applies for or consents to the appointment of any receiver or trustee of all or any part of its property including all or any parts of its business operations or facilities within or affecting the Franchise Area. 16.2 Upon the foreclosure or other judicial sale of all or a substantial part of Yellowstone's business operations or facilities within or affecting the Franchise Area,or upon the termination of any lease covering all or a substantial part of the facilities within or affecting the Franchise Area, or upon the occasion of additional events which effectively cause termination of Yellowstone's rights or ability to operate the facilities within or affecting the Franchise Area, Yellowstone shall notify the City of such fact, and such notification or the occurrence of such terminating events shall be treated as a notification that a change in control of Yellowstone has taken place, and the provisions of this Franchise Agreement governing the consent of the City to such change in control of Yellowstone shall apply. 16.3 The City shall have the right to cancel this franchise 120 days after the appointment of a receiver or trustee to take over and conduct the business of Yellowstone, whether in receivership, reorganization, bankruptcy, or other action or proceeding,unless such receivership or trusteeship shall have been vacated prior to the expiration of said 120 days, or unless: (a) Within 120 days after the election or appointment, such receiver or trustee shall have fully complied with all of the provisions of this franchise Agreement and remedied any existing violations and/or defaults; and (b) Within said 120 days, such receiver or trustee shall have executed an agreement, duly approved by the court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Franchise Agreement granted to Yellowstone except where expressly prohibited by Washington law. Section 17. Franchise Fee and Costs. In consideration for granting this franchise and for the use of the Franchise Area, there is hereby established a franchise fee of$5,000 so that the City recovers its actual, reasonable, administrative expenses directly related to preparing and approving this franchise, as well as administrative costs associated with administering this franchise through the life of the franchise. Nothing herein shall preclude the City from charging administrative fees or recovering administrative costs incurred by the City in the approval of permits or in the reasonable supervision, inspection or examination of all work by Yellowstone in the franchise area to ensure compliance with the terms of this franchise and the applicable permits, as required by the applicable provisions of the Spokane Valley Municipal Code. Yellowstone Pipe Line Franchise Ordinance 21-022 Page 12 of 16 Draft Section 18. Legal Relations. 18.1 Nothing contained in this franchise shall be construed to create an association, trust, partnership, agency relationship,or joint venture or to impose a trust,partnership,or agency duty,obligation,or liability on or with regard to any party. Each party shall be individually and severally liable for its own duties, obligations, and liabilities under this franchise. 18.2 Yellowstone accepts any privileges granted by City to the franchise area, public rights-of-way and other public property in an "as is" condition. Yellowstone agrees that the City has never made any representations, implied or express warranties or guarantees as to the suitability, security or safety of Yellowstone's location of facilities or the facilities themselves in public property or rights-of-way or possible hazards or dangers arising from other uses of the public rights-of-way or other public property by the City or the general public. Yellowstone shall remain solely and separately liable for the function, testing, maintenance, replacement, and/or repair of the pipeline or other activities permitted under this franchise. 18.3 Yellowstone waives immunity under RCW Title 51 in any cases involving the City and affirms that the City and Yellowstone have specifically negotiated this provision,to the extent it may apply. 18.4 This franchise shall not create any duty of the City or any of its officials,employees or agents and no liability shall arise from any action or failure to act by the City or any of its officials, employees or agents in the exercise of powers reserved to the City. Further,this franchise is not intended to acknowledge,create, imply, or expand any duty or liability of the City with respect to any function in the exercise of its police power or for any other purpose. Any duty that may be deemed to be created in the City shall be deemed a duty to the general public and not to any specific party,group,or entity. 18.5 This franchise shall be governed by, and construed in accordance with the laws of the state of Washington and the parties agree that in any action,except actions based on federal questions,venue shall lie exclusively in Spokane County,Washington. Section 19: Miscellaneous. 19.1 In the event that a court or agency of competent jurisdiction declares a material provision of this franchise to be invalid, illegal, or unenforceable,the parties shall negotiate in good faith and agree,to the maximum extent practicable in light of such determination, to such amendments or modifications as are appropriate actions so as to give effect to the intentions of the parties as reflected herein. If severance from this franchise of the particular provision(s) determined to be invalid, illegal, or unenforceable will fundamentally impair the value of this franchise,either party may apply to a court of competent jurisdiction to reform or reconstitute the franchise so as to recapture the original intent of said particular provision(s). All other provisions of this franchise shall remain in effect at all times during which negotiations or a judicial action remains pending. 19.2 Whenever this franchise sets forth a time for any act to be performed, such time shall be deemed to be of the essence, and any failure to perform within the allotted time may be considered a material violation of this franchise. 19.3 In the event that Yellowstone is prevented or delayed in the performance of any of its obligations under this franchise by reason(s) that are beyond the reasonable control of Yellowstone, then Yellowstone's performance shall be excused during such a force majeure occurrence. Upon removal or termination of the force majeure occurrence,Yellowstone shall promptly perform the affected obligations in an orderly and expedited manner under this franchise or procure a substitute for such obligation or performance that is Yellowstone Pipe Line Franchise Ordinance 21-022 Page 13 of 16 Draft satisfactory to the City. Yellowstone shall not be excused by mere economic hardship,nor by misfeasance or malfeasance of its directors,officers,or employees. 19.4 The Section headings in this franchise are for convenience only,and do not purport to and shall not be deemed to define,limit,or extend the scope or intent of the Section to which they pertain. 19.5 By entering into this franchise,the parties expressly do not intend to create any obligation or liability, or promise any performance to any third party,nor have the parties created for any third party any right to enforce this franchise. 19.6 This franchise and all of the terms and provisions shall be binding upon and inure to the benefit of the respective successors and assignees of the parties. 19.7 Whenever this franchise calls for notice to or notification by any party,it(unless otherwise specifically provided) shall be in writing and directed to the recipient at the address set forth in this Section, unless written notice of change of address is provided to the other party. If the date for performing any act is a legal holiday,the act to be performed shall be done on the next succeeding business day which is not a legal holiday. Notices shall be directed to the parties as follows: To the City: To Yellowstone: City Clerk Real Property Administration 10210 East Sprague Avenue P.O.Box 7500 Spokane Valley,WA 99206 Bartlesville,OK 74005-7500 (509)720-5000 19.8 The parties each represent and warrant that they have full authority to enter into and to perform this franchise,that they are not in default or violation of any permit, license, or similar requirement necessary to carry out the terms hereof, and that no further approval, permit, license, certification, or action by a governmental authority is required to execute and perform this franchise, except such as may be routinely required and obtained in the ordinary course of business. 19.9 This franchise and the attachments hereto represent the entire understanding and agreement between the parties with respect to the subject matter and it supersedes all prior oral negotiations between the parties. This franchise can be amended,supplemented,modified,or changed only by an agreement in writing which makes specific reference to the franchise or the appropriate attachment and which is signed by the party against whom enforcement of any such amendment, supplement, modification or change is sought. All previous franchises between the parties pertaining to Yellowstone's operation of its facilities are hereby superseded. 19.10 Yellowstone shall, within 60 days after passage of this franchise, file with the City Clerk, its unconditional written acceptance of all the terms and conditions of this franchise,as well as documentation evidencing the insurance and bond requirements pursuant to Section 15. If Yellowstone fails to so file its written acceptance and provide the insurance and bond verification within such period,then the rights and privileges granted hereunder shall be deemed forfeited. Section 20: 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 Yellowstone Pipe Line Franchise Ordinance 21-022 Page 14 of 16 Draft 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 21:Effective Date This ordinance shall be in full force and effect 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. PASSED by the City Council this day of ,2021. Ben Wick, Mayor ATTEST: Christine Bainbridge, City Clerk Approved as to Form: Office of the City Attorney Date of Publication: Effective Date: Yellowstone Pipe Line Franchise Ordinance 21-022 Page 15 of 16 Draft UNCONDITIONAL ACCEPTANCE BY YELLOWSTONE: I,the undersigned official of Yellowstone Pipe Line Company,am authorized to bind Yellowstone Pipe Line Company and to unconditionally accept the terms and conditions of the foregoing franchise, which are hereby accepted by Yellowstone Pipe Line Company this day of ,2021. Yellowstone Pipe Line Company By: Name: Title: IN WITNESS WHEREOF, has signed this day of ,2021. Subscribed and sworn before me this day of ,2021. Notary Public in and for the State of residing in My commission expires Yellowstone Pipe Line Franchise Ordinance 21-022 Page 16 of 16 ellowstone Pipeline Company-Proposed Spokane Valley Franchis= were �/ \ xhibit A-Yellowstone Pipeline Parts we`A"e ootage of Pipe in ROW Previously Permitted by Spokane County7 a � r� 26N 45E Yellowstone Pipeline-Spokane Valley 26N 44E rtntw"od a valley school 1 �P66_ROW_Mapped_SpokaneVaII y Elementary Mhd 'k mew School i • .r Phillips 66 Company Spokane Terminal 1 _S SpokaneValleyBndy Spokane River Canal _ ! z VELOX ESrtnt Ave ~-~ CD \ ETrent Ave Part D j • Parkwater to Spokane 8"Pipeline 202.16'in Spokane Valley ROW / � A V i Millwood _' Part B Malwooe Thompson Falls to Spokane-Pipeline within Spokane Valley Boundary i l Elementary senool 928.73'In Spokane Valley ROW Rive, Spokane j Part M.,onA,e � M - Spokane Transfer Lines Crossing East Sharp Avenue JILJ a vanes Permit for 20 lines with only 14 existing Spokarlp Ho�P'tal ' f 1200'Permitted-840'Existing in Spokane Valley ROW K ,v'�A -Z 25N 45E Vjz. ;omal Nortnril ^m v �' ed,nol m..aw.n n °25N 44E & DISN MAN M___ School 25N 43E _ 41 I Part _ Spokane to Fairchild/Moses Lake 8"Pipeline within Spokane Valley Boundary 11,685.75'In Spokane Valley ROW VERADA!E a rc E _ I l y a Central 1' I—� a Valley Lath Ave Etlrh Ave Senior r-� _1 � Lath Ave u, School _--- \ I � Middle —_—_fl. f- ,,I. School E r6,h Ave c -— — 1 �_ E,Fm Arz The nines - & 11 .�� , , ., E24rh nve sa La bing • E""`i Ave 0291 Microsoft Corporation 02021TomTom CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16,2021 Department Director Approval: Check all that apply: ❑consent ❑old business ❑new business ❑public hearing ❑information ®admin.report ❑pending legislation ❑executive session AGENDA ITEM TITLE: Administrative report—Spokane Valley Salary Commission for Council pay. GOVERNING LEGISLATION: RCW 35.21.015; chapter 2.10 SVMC. PREVIOUS COUNCIL ACTION TAKEN: September 25,2018 approval of amendments to chapter 2.10 SVMC updating provisions relating to salary commissions; November 6, 2018 appointment of a five- member 2018 Independent Salary Commission; January 15, 2019 administrative report with final report and recommendation of the Salary Commission,which included a recommendation to discuss potentially convening a salary commission every three years as discussed more fully below. BACKGROUND: There are two ways in which Council pay may be adjusted. First, the Council may adopt a salary ordinance establishing the new salary. However, pursuant to RCW 35A.13.040, "any increase or reduction in the compensation attaching to an office shall not become effective until the expiration of the term then being served by the incumbent: PROVIDED That compensation of councilmembers may not be increased or diminished after their election nor may the compensation of the mayor be increased or diminished after the mayor has been chosen by the council." As such,for example, Councilmember Hattenburg would not see increased pay under this method until the beginning of a second term if he chose to run and was re-elected to a second term in 2023. The second way council pay may be adjusted is through the recommendation of a salary commission. RCW 35.21.015 provides the authority and process by which a city may establish a salary commission. Under this method, an appointed salary commission would undertake a review of the council and mayor salaries, analyze what councilmembers for similarly-situated jurisdictions are paid, and then make a written report to the council regarding whether the pay levels should be adjusted and, if so, to what levels. A summary of the salary commission's report would be published in the official newspaper of the City for two weeks, with the second publication marking the date as the official date of action for the salary commission. If no referendum petition is filed with the City within 30 days of that second publication,the salary adjustment automatically goes into effect without any action of the Council, on the 31' day. Because the salary adjustment is made by the salary commission, and not the council, this is not considered an act by the council to perform a mid-term adjustment and is thus permitted. A salary commission may be appointed for a period of one year by the Mayor and confirmed by the Council. This five-person commission serves without pay,and members shall be residents of the City,and registered to vote in Spokane County. No officer,official,or employee of the City or any of their immediate family members may serve on a salary commission. Upon incorporation, Council's pay was set pursuant to RCW 35A.13.040 at $400 per month, with the Mayor receiving$500 per month. In 2006,Council adopted SVMC 2.10.020 establishing the authority for Council to appoint a Salary Commission. Council then appointed a five-member Salary Commission to a one-year term. The 2006 Salary Commission met seven times,and then submitted a final report December 4,2006 recommending an increase in pay to $750 per month for Councilmembers,and$975 per month for the Mayor. There was no referendum petition filed with the City,so this recommendation became final and effective without action of the Council on January 17,2007. In 2018, Council again convened a Salary Commission,naming a panel of five citizen volunteers, which met six times. The Salary Commission finalized its report on January 8, 2019,no referendum by citizens was filed within 30 days of the second publication date,and the salary adjustments became finalized without action of Council. The revised salaries became $1,415 per month for Councilmembers, and $1,775 for the Mayor,which is what they continue to be paid. A copy of the 2018 Independent Salary Commission Final Report is included for additional background, including the criteria for consideration, and process used in arriving at the recommendation. Several staff members were assigned to assist the Salary Commission in collecting data for its consideration. Staff is bringing this issue forward at this time because one of the significant discussion points for the 2018 Salary Commission related to the length of time between the 2006 Salary Commission and the 2018 Salary Commission. The 2018 Salary Commission Final Report stated that although its recommendation for increased pay was justified, it was concerned the adjustment appeared unusually large due to the 12-year gap between Salary Commission actions. As such,the 2018 Final Report included a recommendation that Council consider convening a Salary Commission every three years to keep the Council salary analysis more current. If the Council is interested in convening the Spokane Valley Salary Commission to perform a current Council pay analysis, it should request for staff to schedule a subsequent administrative report regarding Council appointing a 2021-22 Salary Commission to get the process started. OPTIONS: (1) Request that staff start the process for the appointment of a 2021-22 Council Salary Commission; or(2)take other action as appropriate. RECOMMENDED ACTION OR MOTION: At the discretion of Council. BUDGET/FINANCIAL IMPACTS:Not applicable at this time. STAFF CONTACT: Cary Driskell,City Attorney. ATTACHMENTS: 2018 Independent Salary Commission Final Report. CITY OF SPOKANE VALLEY 2018 INDEPENDENT SALARY COMMISSION Final Report: January 8, 2019 Members: • Bill Gothmann, Chair • Tes Sturges, Vice Chair • Chuck Simpson • Kathe Williams • Steve Robertson • Michael Moore (alternate) Spokane Valley staff support: • Cary Driskell, City Attorney • Chris Bainbridge, City Clerk • John Whitehead, Human Resources Manager • Chelsie Taylor, Finance Director Introduction The City of Spokane Valley was incorporated effective March 31, 2003. It has a current population of approximately 97,000 residents, making it the 10th largest city in the state of Washington. The Council recently adopted a budget of$78.3 million for 2019. Spokane Valley operates under a council-manager form of government. The legislative branch is made up of seven Councilmembers,with the Mayor chosen by his or her fellow Councilmembers for a two-year appointment. The City Council hires a professional City Manager as its Chief Executive Officer, who is responsible for the day-to-day administration of the City, carrying out the policy directives of the City Council. Setting salaries for Mayor and Councilmembers Pursuant to state law, upon incorporation of a city of 15,000 or more, the starting salary for council members is $400, and a couneilmember holding the position of mayor shall be entitled to an additional 25%. When the City incorporated, the Mayor received $500 per month, and the Councilmembers received $400 per month. The Spokane Valley City Council appointed an independent salary commission in 2006, which filed a report adjusting the salaries for the Mayor to $975 per month, and to $750 per month for Councilmembers,which became effective January 17, 2007. Salaries for the Mayor and Councilmembers have not been adjusted since that time. These salaries may only be modified one of two ways. First, the Council may adopt a salary ordinance establishing the new salary. However, pursuant to RCW 35A.13.040, "any increase or reduction in the compensation attaching to an office shall not become effective until the expiration of the term then being served by the incumbent: PROVIDED That compensation of councilmembers may not be increased or diminished after their election nor may the compensation of the mayor be increased or diminished after the mayor has been chosen by the council." As such, for example, a sitting Councilmember would not see increased pay under this method until the beginning of a second term if that Councilmember chose to run and was re-elected. The second way Council pay may be adjusted is through the recommendation of a salary commission. RCW 35.21.015 provides the authority and process by which a city may establish a salary commission. Under this method, an appointed salary commission undertakes a review of the council and mayor salaries, analyzes what councilmembers for similarly-situation jurisdictions are paid, and then makes a written report to the council regarding whether the pay levels should be adjusted and, if so, to what levels. A summary of the salary commission's report would be published in the official newspaper of the City for two weeks, with the second publication marking the date as the official date of action for the salary commission. If there is no referendum petition filed with the City within 30 days of that second publication, the salary adjustment automatically goes into effect without any action of the Council, on the 31st day. Because the salary adjustment is made by the salary commission, and not the council, this is not considered an act by the council to perform a mid-term adjustment, and is thus permitted under Washington state law. Page 2 Description of 2018 Independent Salary Commission On September 25, 2018, the Spokane Valley City Council approved Ordinance 18-021 amending chapter 2.10 SVMC. The amendments updated the City Code so that references were not specific to a particular point in time, and so that future appointments of a salary commission will not require amending the Code. On November 6, 2018, the Mayor appointed a five-member 2018 Independent Salary Commission, which was confirmed by the City Council. Pursuant to SVMC 2.10.020(A)(2), the "purpose of the independent salary commission shall be to review and establish the salaries of the Mayor and Councilmembers." Pursuant to SVMC 2.10.020(A)(7), the first meeting shall occur no later than 20 days after the appointments are made by the Council, and the Salary Commission shall review, and if it so determines, amend and file its schedule of salaries for the Mayor and Councilmembers with the City Clerk within 90 days after being appointed. As such, the first meeting was required to be held no later than November 27, 2018, and the report of the Salary Commission regarding salary schedules required is to be submitted no later than close of business on February 6,2019. The Salary Commission met on November 20, November 29, December 6, December 13, December 20, 2018 and January 8, 2019. The Salary Commission is submitting this final report establishing a salary schedule for the Spokane Valley Mayor and Councilmembers on January 8, 2019. Appendix III contains a summary of each meeting. The Process The Salary Commission analyzed salary information for mayors and councilmembers compiled by the Association of Washington Cities for a number of cities throughout the state. The Salary Commission narrowed their comparison to the thirty largest cities in the state. Additional analysis led the Salary Commission to again refine its focus to nine cities that are most similar to Spokane Valley based on population and council-manager form of government: Lacey, Olympia, Shoreline, Burien, Richland, Pasco, Kennewick, IKirkland, and Yakima. Some of these are located on the east side of the state, and some on the west side, See Appendix II for more information on comparables. The Salary Commission considered three general factors in its analysis: 1. The amount of time Council spent and level of responsibility in performing their Council duties; 2. A market analysis of salary for mayors and councilmembers in comparable cities in Washington, set forth in Appendix II; and 3. Citizen survey results, set forth in Appendix I. A majority of survey respondents indicated support of a salary increase at some level. As noted above and at the direction of the Salary Commission, a citizen survey was placed on the City's website with questions regarding various potential salary levels. In addition, the City Page 3 sent notice of the survey to its general email list, as well as sending notice on the City's Twitter account. See Appendix I for a summary of the results of that citizen survey. Council Roles and Responsibilities The Salary Commission requested and received information from the Mayor and Councilmembers regarding how many hours each Councilmember spends, on average, each week attending to City business. This time included meeting with the public; preparing for weekly Council meetings; attending weekly Council meetings; preparing for and attending assigned committees within and outside the City organization that are related to City business; and attending in a representational capacity various events requiring a City presence. The time commitment is different for each Councilmember, and can change significantly each year for every Councilmember depending on committee and workload assignments. Based upon responses from each Councilmember, the average weekly amount of time for all Councilmembers is approximately 35 hours. The average weekly time spent by the Mayor is 43 hours. There are typically two regular Council meetings and two study sessions per month. These meetings and study sessions generally last between two and three hours each. Throughout the year, the Council also has several special Council meetings on various issues. In addition to the meeting attendance, the Mayor and Councilmembers prepare for each meeting by reading the material and following up with staff members as necessary in advance with questions they may have. In their role as City policymakers, Councilmembers stay informed on issues such as provision of public safety services (police, courts, prosecution, jail, public defense, probation, etc.); public infrastructure projects and funding; land use planning and development; economic development; determining appropriate levels of taxation and spending; labor issues; regional cooperation with all other jurisdictions (emergency management, regional growth planning, consideration of a new jail facility, regional transportation, etc.); and regional, state, and federal legislative proposals. In addition to these regular commitments, Councilmembers represent the City's interests on various City and regional boards and commissions, such as the Spokane Transit Authority (STA), the Spokane Regional Transportation Council (SRTC), the Spokane Regional Health District, the Aging and Long Term Care of Eastern Washington, Greater Spokane Valley Chamber of Commerce, Spokane Regional Clean Air Agency, the Growth Management Steering Committee, Greater Spokane Inc, (GSI), the Housing and Community Development Advisory Committee, the Mayor's Association of Northeast Washington (Mayor only), Spokane County Continuum of Care for the Homeless, the Spokane Regional Tourism Promotion Area, Visit Spokane, and the Wastewater Policy Advisory Board. Various Co uncilmembers are also members of standing internal committees, including the City Finance Committee, the City Governance Manual Committee, and the Lodging Tax Advisory Page 4 Committee. Additionally, Councilmembers have contributed as members of ad hoc committees, such as the Economic Development Committee and the Sidewalk Snow Committee. The Mayor and Councilmembers also represent the City at the state and national level, with past Councilmembers serving in officer leadership roles with the Association of Washington Cities and the National League of Cities. The responsibilities of the Mayor and Councilmembers include maintaining frequent contact with the community to ensure familiarity with existing and emerging issues of concern and interest for our citizens. The Mayor and Councilmembers are also active in a wide range of community organizations and events. Councilmembers regularly receive and respond to letters, e-mails, and telephone calls. Many past and current Councilmembers have visited area high schools to discuss issues of importance to Spokane Valley's youth. A current Councilmember regularly conducts meetings of a youth group organized as the Spokane Valley Youth Voice, organized in an effort to engage high school aged young adults to generate ideas of interest for their age group where the City may have an ability to cause change. The Mayor and Councilmembers develop and deliver presentations to community organizations, such as the Spokane Valley Chamber of Commerce and Kiwanis. They write articles and guest editorials, conduct press conferences and conduct on-air interviews. They attend ceremonies such as ribbon cuttings, ground breakings, grand openings, open houses, graduations, and special events at local schools. At some of these events they are simply in attendance, and at others they are writing and delivering speeches or acting as master of ceremonies. In addition to the above responsibilities, the Mayor presides at Council meetings. The Deputy Mayor assumes the responsibilities of the Mayor in the Mayor's absence. Rationale for tbe Proposal The current salary for the Mayor is $975 per month, and $750 per month for Councilmembers, and these have remained unchanged since January, 2007. The City reimburses them for actual expenses incurred while performing City-related duties, generally relating to travel. The Salary Commission members uniformly agreed that the salary amount was too low for the amount of time elected officials are obliged to devote to the City, and for the responsibility of representing the City and its residents. However, the Salary Commission believes a component of being a Councilmember should be grounded to some extent in a sense of volunteerism, and a desire to serve the community. Every Salary Commission member expressed appreciation for the work of each member of the City Council, including past and present. The Commission recognizes that a Councilmember is never"off duty." He or she is approached by citizens not only at official events, but also in his or her everyday life, such as at work, at the grocery store and at church. The Salary Commission members feel this accessibility is important to the community. Page 5 While the Commission didn't feel it was appropriate to propose a full salary, they did feel the City should compensate its elected officials at a higher rate than they currently receive. The Salary Commission had a general discussion regarding total compensation, including salary and optional benefits. The purpose of the Salary Commission pursuant to SVMC 2,10.020(A)(2) is to establish the salary of the Mayor and Councilmembers, which excludes consideration of any benefits received outside of the monthly salary. They weighed this information as they developed the proposal; however, they recognized that the scope of their work was limited to salary,which does not include benefits. Salary Schedule Proposal Based upon a unanimous vote, the Spokane Valley 2018 Salary Commission proposes the following salary schedule for the City of Spokane Valley Mayor and Councilmembers: I_ft�l lli�CinI (Cti((ai(9n0[��k�i�i SV i IPwiiiox:n dI 0l uIl.lt.Fi Mayor $975 $1,775 Councilmember $750 $1,415 Pursuant to RCW 35.21.015, this salary schedule shall become effective and incorporated into the City budget without further action of the City Council or Salary Commission, subject to a referendum of the people. The Salary Commission also wanted to note that it believes the amount of time between the last time a Salary Commission was convened and this time was too great, and recommends to the Council that it consider re-convening a Salary Commission every three years. When review and adjustment occurs many years apart, any adjustment looks unnaturally larger than it would if regular adjustments had been made. Respectfully submitted, CAtoc,..id Bill Gothmann, Chair of the 2018 Spokane Valley Independent Salary Commission Page 6 APPENDIX I: Summary of Public Survey Results (1) Spokane Valley City Couiacilmembers work an average of 35 hours per week across their range of various duties, Given the responsibilities of the Couneilmembers, how much do you feel is an appropriate monthly salary? Their current monthly salary is $750. (Amount) (Percentage responding) (Total responses) $ 750 - $1,000 43.02% 37 $1,000 - $1,250 25.58% 22 $1,250 - $1,500 12.79% 11 $1,500 - $1,750 18.60% 16 *the City received one comment that these positions should be all voiwi/aiy, including Mayor. (2)The Spokane Valley Mayor works an average of 43 hours per week across the range of various duties. Given the responsibilities of the Mayor,how much do you feel is an appropriate monthly salary? The Mayor's current monthly salary is $975. (Amount) (Percentage responding) (Total responses) $ 750 - $1,000 34.88% 30 $1,000 - $1,250 17.44% 15 $1,250- $1,500 13.95% 12 $1,500- $1,750 11.63% 10 $1,750 -$2,000 22.09% 19 (3) What is your residential zip code? Of 86 respondents, 78 identified a zip code in the City. TOTAL RESPONSES - 86 Page 7 APPENDIX II: Comparable cities (Council-manager forms of government) Survey of monthly salaries: Municipality Population' Mayor salary** Councilmen'her salary** Lacey 48,700 $1,725 $1,475 Olympia 52,490 $2,086 $1,739 Shoreline 55,060 $1,250 $1,100 Burierr 56,080 $750 $600 Richland 56,243 $1,393 $1,143 Pasco 71,680 $1,450 $1,115 Kennewick 81,607 $1,400 $1,200 Kirkland 86,080 $1,531 $1,202 Yakima 93,900 $1,375 $1,075 * Official April 1, 2018 Population estimates: Office of Financial Management(OFM). **Source: AWC 2018 salary data. Page 8 APPENDIX III: Meeting Summaries Scrr5'l?r 110411111111111\111L„ OFFICE OF ME CITY CLERK pOli .11e Christine Bainbridge,City Clerk Valley ' 10210 E Sprague Avenue . Spokane Valley WA 99206 Phone: (509)720-5102 ♦ Fax:(509)720-5075 ♦ www.spokanevalley.org cbainbridge@spokanevalley.org SPOIKANE VALLEY INDEPENDENT SALARY COMIVHSSION Spokane Valley City Hall, Conference Room N117 November 20, 2018 Commission Members Present: Staff Present: Bill Gothmann Staff Liaison: Cary Driskell, City Attorney Michael Moore Chelsie Taylor, Finance Director Chuck Simpson John Whitehead, Human Resources Manager Tes Sturges Carrie Koudellca,Deputy City Clerk Kathe Williams Commission Members Absent: Steve Robertson Meeting Summary: City Attorney Driskell convened the meeting at 11:00 a.m. and the attendees briefly introduced themselves. There were no members of the public in attendance. Mr. Driskell thanked everyone for volunteering and gave background information as to the limitations of setting the salary for Councilmembers as established by Article 30 of the Washington State constitution. He said that according to state law, the City has two ways to set salaries for councilmembers: 1) Council can vote to set their own salaries but the salary would not go into effect until the term following their own; or, 2) Council can establish an independent salary commission to analyze the workload of the Councilmembers and compare their workload and salaries with that of other similar cities. He said following the independent analysis, the commission will submit a final report and make a recommendation to Council. Any adopted changes would then become law and the new salary of Councihnembers within thirty days. Mr. Driskell explained that Spokane Valley is a Council/Manger form of government whereby Council decides policy issues and the City Manager and staff carry out the policies set by Council. He said the Mayor is selected by the Councilmembers to fill the largely ceremonial role of Mayor for a two-year period. He said it is also the role of the Mayor to chair the Council meetings. Final Report from 2006 Mr.Driskell referred the group to the packet materials and asked if there were any questions;there were none, He said the 2006 Final Report provides a good framework to consider for their analysis, adding that they are not obligated to follow it and they can make modifications to it at their discretion, He said by law, the final report from the commission must be issued to Council within ninety clays of Council appointing the commissioners. As a brief history, Mr. Driskell said that when Spokane Valley incorporated in 2003, the original salaries were set at $400 a month for Councihnembers and $500 a month for Mayor. In 2004, a change in salaries was adopted; however, a referendum was filed and the salary changes were rejected, In 2006,an independent review and analysis was conducted and salaries were changed at that time. He said no other changes have been made to the salaries since then, but the nature of the jobs for Councihnembers have become more complex and the City budget has increased. He said at a Council meeting a few months ago, a member of the public asked that the Salary Commission be reconvened to assist in attracting quality councilmember interest. Mr, Gothmann asked Mr. Driskell to explain the Open Public Meetings Act (OPMA) and the Public Records Act (PRA) and how they relate to the Salary Commission, Mr. Driskell said the commission is established by Council and is subject to the requirements of the OPMA. Some of those requirements include notification to the public of the meetings so they can attend and give public comment. He said it also means that more than three members of the commission can't discuss the business of the commission outside of public meetings. He said all records of the commission are subject to the PRA upon request. Mr. Driskell said that another provision in the City code is that once the commission is convened, members are not to discuss anything fiom the meetings with any Council members. He said that it is important that the public has confidence that what we do is transparent, that we use reasoned analysis and that nothing is done in secret. Election of Chair and Vice Chair Mr.Gothmann nominated himself to chair the commission. Mr.Driskell said the role of Chair and Vice Chair is very limited and he said he is not exactly sure of their function. Mr. Simpson nominated M . Sturges to Vice Chair. The nominations were seconded and unanimously passed. Mr. Driskell asked if the group prefers to have the meetings run by the Chair or by the Staff Liaison; Mr. Gothmann suggested that he and Ms. Sturges meet with Mr. Driskell to set the agendas. Mr. Driskell said staff will draft questions for the next meetings based on what the commission wants answered by Councihnembers, such as their time commitment, as well as a survey of the public and analysis of other cities. Ms. Sturges said she is more interested in the details of the analysis of other cities, such as how many hours Councilmembers are putting into their roles. Mr. Whitehead said we may need to get a survey by those city's council members as well, Mr. Gothmann said they might try to pare down the list of cities to those that are most comparable to our form of government. Mr. Driskell said comparisons need to be within Washington State because all states have different laws and requirements so to go out of the state would make it difficult to compare and analyze. Mr. Driskell added that Spokane Valley is different from other jurisdictions because we do not provide fire, library, water, or utility services. Mr. Simpson said he thinks we should exclude all Puget Sound cities and stay in eastern Washington and the Vancouver area.Mr.Driskell said he doesn't know if compensation is skewed by the cost of living, but he recommends including those cities initially and they can be excluded later if that is the desire of the commission. Ms. Sturges said for the next meeting she would like the list updated with current information and pared down to cities more similar to Spokane Valley; Mr. Whitehead said he will provide an updated list and asked the group to give him a list of factors that he can compare. Mr. Driskell suggested population,type of government,and budget.Mr. Gothmann added the number of hours spent by Council members if we can get it.Ms.Williams said she is reluctant to gather information for comparison if it is not potentially good information, adding that the hours of other council members spent in their roles may not be good information to do the analysis. Mr. Driskell said Spokane is not usually a good comparison because of the difference in their form of government. Mr. Gothmann suggested that Mr. Whitehead gather the information and the commission will decide which jurisdictions to include in their analysis at the next meeting. Mr. Simpson asked about the benefits the Councilmembers get outside of wages.Mr.Driskell said the charge of commission is determining salary only, not including benefits. He said Councilmembers are offered health, dental and vision benefits, which he said is unusual for Councilmembers in the state, but that is what was adopted in 2003. Ms. Sturges asked if they can consider the benefits they receive when determining their salary. Mr. Driskell said he can't tell them they can't think about that as they move forward, but he again said the charge of the commission is to determine the salary of the Council. Mr.Gothmann said some Councilmembers may choose to not enroll in the insurance benefits. Finance Director Taylor said they can opt out, but that is not the norm.Ms. Sturges asked if they get retirement benefits and Mr. Whitehead said they are eligible for retirement benefits but they have to be vested before receiving any benefit; he said many choose not to enroll in retirement benefits. Future Meetings The next meetings will be approximately one hour and Mr. Driskell proposed the larger second floor conference room (N212) if possible. Upcoming meetings were scheduled as follows: Thursday,November 29, 2018 at 3:00 p.m. Thursday, December 6,2018 at 4:00 p.m. Thursday, December 13, 2018 at 4:00 p.m. Mr. Driskell said the deadline for the commission to submit their report is February 4, 2019. He said next week they will identify those cities for which to compare and the criteria. He asked that the City Clerk include the website survey and data from Lasertiche in the packet materials for the next meeting. There being no further business, the meeting adjourned at 11:50 a.m. SpokaSury OF ne OFFICE Of THE CITY CLERIC Tolle Christine Bainbridge,City Clerk400° 10210 E Sprague Avenue 4 Spokane Valley WA 99206 Phone: (509)720-5102 4 Fax:(509)720-5075 ♦www.spokanevalley,org cbalnbridge a@spokanevalley,org SPOKANE VALLEY INDEPENDENT SALARY COMMISSION Spokane Valley City Hall, Conference Room N212 November 29, 2018 Meeting Summary Commission Members Present: Staff Present: Bill Gothmann,Chair Staff Liaison: Cary Driskell,City Attorney Steve Robertson John Whitehead, Human Resources Manager Chuck Simpson Chris Bainbridge,City Clerk Tes Sturges,Vice-chair Kathe Williams Alternate Commissioner:Mike Moore Other w Present:three citizens Meeting Summary: City Attorney Driskell convened the meeting at 3:00 p.m.,after which it was determined that staff would set the agendas, Mr. Gothmann would lead the meeting, and staff would contribute when appropriate. Mr. Gothmann said he learned when he was a councilmember, is that any time information comes to the committee,it is better if it comes from staff so as not to appear biased;and added that he has information that he prepared for today's meeting and will discuss later in the meeting. It was noted that commission members had a copy of the minutes but likely had not had a chance to review those.Mr. Gothmann mentioned Mr, Siimpson's list of questions given at the last meeting, and noticed they were not in the minutes, and City Clerk Bainbridge explained that they are not included in the minutes, but we all have the handout of those draft survey questions for councilmembers; and Mr, Driskell distributed copies to all of a revised version of those questions,and said we can discuss those under agenda item 144. Since not everyone was able to attend the first meeting, there were self-introductions. City Attorney Driskell briefly explained the duties of a mayor, councilmember, and a city manager in a council/manager form of government as noted in the stale statutes, a copy of which he distributed; and he noted that our council/manager farm of government is very different from a strong mayor form of government; and said that commissioners want to keep in mind our form of government will likely be used by this commission in terms of comparing our cities to other like cities, Mr. Gothmann stated that the mayor spends quite a bit more time on city business than the other councihnembers, as members of the public generally want to talk to the mayor when they have questions or concerns. Mr. Driskell turned attention to the draft survey questions, and regarding the question about time commitments, that there are various committee meetings that all councihnembers, including the mayor, are obligated to attend;and opened the floor for any changes to the list of questions.There was some discussion about the frequency of some of these committee meetings, and ultimately, it was decided that City Clerk Bainbridge would send commissioners a copy of the current committee assignments for Councilmembers. Salary Commission Meeting Sunnnery 1 1-29-2018 Pngc t of4 City Clerk Bainbridge noted that when commission members get the committee list, they will note that Councilmember Peetz is currently not on a committee;that she is fairly new,and was on one committee but it dissolved;so she will probably get assigned to a committee or two later.There was also discussion about the frequency of council meetings,i.e.,once a week generally;and that some councilmembers might immerse themselves more into their role than others; and that newer councilmembers might also take more time to familiarize themselves with the materials, There was mention that in looking over the list of committee assignments and time commitment, that this commission will look at the Mayor separately, and Mr. Gothmann added that the Mayor also receives a higher pay than the couneihnembers. Mr. Driskell clarified that currently the Mayor's salary is 30% higher than the councilmembers. There was also mention that different mayors would likely spend different amounts of time at their position, just as different councilmembers would, as it would depend on their own schedules and availability. City Clerk Bainbridge mentioned that members of council do not spend countless hours here at City Hall, as they can come in for council meetings,committee meetings, meetings with staff,and they have the opportunity of grabbing their council meeting materials and taking them home to read and study. Mr. Gothmann also noted that the job of mayor and councilmembers is considered part-time, as opposed to Spokane County Commissioners who work full time.Mr. Simpson said he views these positions not as a job, but as serving the city. There was also seine question about the city hierarchy,and Mr. Driskell explained that it is council's job to approve policy,and it is the job of the City Manager to carry out those policies; and it was clarified by Mr. Driskell that the City Manager would not be involved in this commission's process, There was some discussion about the difference between the legislative actions of council,and the administrative actions of staff;and that all staff are under the city manager,and it is the Council that has the responsibility of hiring or terminating the city manager. In response to a comment about the city manager and councilmembers time together,Mr.Driskell said the City Manager schedules regular time to meet with each councilmember. There was ultimate agreement with the survey questions and City Clerk Bainbridge said she will make sure these get to each councilmember, and per this commission, we will ask that councilmembers return those to the City Clerk in about two weeks. Once the surveys are returned, City Clerk Bainbridge said she will tabulate the answers for this commission.Mr.Driskell also suggested that at the end of th is meeting,to look at possible times and dates for future meetings, past the December 6 and 13 meetings already scheduled. Concerning the survey that was undertaken in 2006, there was brief discussion about those cities surveyed and of the salary ranges, Mr. Whitehead distributed copies of a spreadsheet with data on various cities including population, form of government (council manager or strong mayor), mayor compensation, councihnember compensation, hours worked, benefits, and budget. Mr. Whitehead explained that much of this information is courtesy of the Association of Washington Cities(AWC);that annually they pool a range of cities and compile salary/compensation data;said the cities are grouped with populations 30,000 to 49,999; and from 49,999 up. Mr. Whitehead said he added Bellevue because it wasn't part of the survey, but it was included in the city study done in 2006. He further explained that in looking at the sheet, the information from the right of`hours' is the information this group asked for,and the information to the left of`hours' is what was compiled by AWC, without the city of Bellevue. Mr. Whitehead noted that blanks under hours, benefits,or budget indicate that he has not heard back from those cities yet,which he said wasn't surprising given the short time frame to gather the data, as well as the Thanksgiving holiday; and entries of"no data" indicate that the city responded, but they didn't know; and he said that the benefits include the traditional benefits of health,vision,and dental,among other things.Mr.Whitehead said the first line on the spreadsheet is Spokane Valley with an estimated population of 95,000; we have a council manager form of government, our mayor makes $975 a month, councilmembers make $750, we provide full benefits, and our total city budget is about$81,000,000. in response to a question from City Clerk Bainbridge,Mr. Whitehead said the AWC information is from data collected in 2017; he noted the term `VBBA' under councilmember compensation stands for `voluntary employee benefits association,' which is similar to a medical savings account, but is contributed to on behalf of the councilmembers, Further, Mr. Whitehead said that as more data is submitted to him, he will be updating the list;end that this commission doesn't have to include all the cities when making a determination,and can certainly reduce those cities to just those this commission thinks are the most comparable.Mr.Whitehead said he removed the city of Seattle from this list due to its size,and that Tacoma did not respond. Salary Commission Meeting Summary 11-29-2018 Page 2 ord Mr. Gothmann distributed copies of linear regression charts he drafted showing 2008 population and 200G pay of various cities in a council-manager form of government,strong-mayor form of government,and one showing both. It was mentioned these handouts are for illustrative purposes only as a method of analyzing data. Mr. Driskell mentioned we are fairly unique as a city, as we have a lower budget as we are not a full service city;so the data would be skewed if we used budget rather than population,and again stated that this data is a factor, but not the only factor one might consider; and that after the data is compiled that this commission wants to consider, it is going to boil down to looking at the different possibilities for pay, and said he feels commissioners will know it when they see it. Mr. Simpson mentioned that to him, it is very important to also take into consideration the benefits, and Ms. Williams said she would like to know what the value of the benefit package is for our councihnembers. There was discussion about collecting benefit values from other cities,and the commission members said they did not want to do that; but to just consider the benefits our councilmembers receive from the city. Mr. Simpson said he would also like to concentrate on this unique community,and not include data from the west side of the state,with Mr.Robertson agreeing with the idea of keeping it simple. The topic of benefits was discussed further, with Mr. Whitehead explaining that the value of the benefits package depends on what each individual councilmember chooses;so the package would vary depending if a councilmember received benefits for themselves, for them and their spouse,and for them and their spouse and children. Mr. Simpson asked then to see what the benefits would be for those three categories. Ms, Williams said bringing that into the discussion,there would be an individual councilmember who has more time to devote to their duties as an elected official,versus another individual who might work full time and/or have a family;to simplify the information,we might want to only look at the cost for a single individual.Mr. Whitehead said he can supply all the figures this commission would like, but there are three different plans from which to choose, with five tiers on each plan. Ms. Sturges asked if staff could go back five years and give an average cost of benefits per councilmember; and Ms. Williams and Mr. Gothmann agreed with that suggestion.Mr. Whitehead added that for the current council,there were some who did not take benefits,and therefore, the zeros would skew the data, Several commission members suggesting taking out the zeroes, and Ms. Sturges remarked that the benefit is still available,even though some may have chosen not to accept it; and she suggested showing an average of cost for those who did use it; and to go back five years. Mr. Whitehead explained that even though a councilmember might have chosen not to accept benefits,depending on the qualifying event, they could at any time of the year, come back on to benefits; and Ms. Williams suggested deleting those months with a zero,and do an average monthly. Mr. Gothmann disagreed and said he would prefer to use just the current councilmembers,just for this past year, and divide it by seven; and Mr. Simpson agreed,Ms.Williams said the idea with going back five years and an average month,is to make sure this past year isn't an anomaly. There was also discussion about pay and benefits; that one single councilmember would be actually getting less in benefits than a councilmember with a family who elected to accept the benefits package. Ms. Sturges suggested getting figures for what the benefit value is this year, and what it has averaged over the last five years. Mr. Gothmann suggested including what the budget is for each year as well,and divide that number by seven;so the figure would be the average the city spent for each of the councilmembers for the last five years.Because of the amount of work,Mr.Driskell suggested having the figures for the last three years instead of five.Ms.Williams asked about the budgeting and if the council's benefit budget was calculated each year based on every councilmember getting full family benefits. Mr. Whitehead said he would need to check with the finance director for those figures.To recap,staff will gather actual expenses for the last three years for each councilmember, added together and divided by seven; and we will have the average budgeted amount for benefits for the last three years, and to have three separate ranges:single,married and married with family for the current cost going back three years. Mr. Driskell stated that the charge of this salary commission is to look at the salary for council;although he realizes commissioners will be looking at benefits as well.Mr.Whitehead added that concerning other cities, many have different plans, some larger or smaller staffs, and some are self-insured, so we won't know the value of those cities' benefits.Mr, Simpson mentioned that most people look strongly at available benefits. Salary Commission Meeting sunmrary t 129-20la Page 3 of4 The floor was opened to public comments. Ms. Barbara.Howard said she thinks councilmembers should also get gas mileage as an enticement; that she knows they attend various meetings here and downtown;and that she looks at the vouchers paid each month and knows that the health insurance dropped about$3,000 from what it was the previous year,as there are less children on the plan now as compared to then. There were no other public comments. Ms. Bainbridge said that councilmembers do put in for gas mileage reimbursement as it is related to their duties as an elected official, Mr. Driskell said regarding the issue of a citizen survey, that we can't do that until we have the time commitment outlined by our council so that will need to be put on hold for now. Mr. Simpson mentioned the previous 2006 survey is interesting reading, and Mr. Driskell added that at the time,there was an active group trying to disincorporation the city,so some were very anti-city. City Clerk Bainbridge made sure each commissioner had a copy of the special meeting notice for next week that she handed out at the beginning of the meeting;and the group was reminded that the December 6 meeting will begin at 4 pm,as will the December 13 meeting;and that she will send out the previous meeting summary to commissioners;and will get the survey out to the current councilmembers as soon as possible,with a quick return date. Mr. Whitehead said for the next meeting,he hopes to have a range of benefit costs as well as a good amount of other data about benefits that might help the group; and will continue to update the spreadsheet. There being no further business,the meeting adjourned at 4:17 p.m. Salary Commission Meeting Summary 11-29-2018 Page 4 of 4 pokane OFFICE Or'I THE CITY CLERK j They Christine Bainbridge,City Clerk �I 10210 E Sprague Avenue 41 Spokane Valley WA 99206 Phone: (509)720-5102 ♦fax:(509)720-5075 a www.spokanevalley.org ebainhridge ct spokanevatley.org SPOKANE VALLEY INDEPENDENT SALARY COMMISSION Spokane Valley City Hail, Conference Room N212 December 6, 2018 Meeting Summary Commission Members Present: Staff Present: Bill Gothmann,Chair Staff Liaison: Cary Di'iskell, City Attorney Tes Sturges, Vice-chair John Whitehead,Human Resources Manager Steve Robertson Chris Bainbridge, City Clerk Chuck Simpson Kathe Williams Alternate Commissioner: Mike Moore Others Present Three citizens Meeting Summary:The meeting was convened at 4:00 p.m. Mr. Whitehead distributed and explained copies of an updated version of the compensation data he had provided at an earlier meeting as a few more cities responded, but said the data substantially remains the same; he noted this group previously discussed benefits; and explained that he compiled the data on this as shown;he mentioned that in looking at this in terms of the cost to the city,the word 'cost' could be changed to'benefits' of the individual councilmember, Mr, Whitehead explained that in response to our request about having a range of costs, Mr. Whitehead distributed copies of`Council Benefits Costs' which shows a range of city costs for years 2016,2017,and 2018 for just the councilmember,for the councilmember and spouse, and for the full family (which is the councilmember, a spouse and two or more additional dependents), and also included on that handout, is the average actual monthly costs; he explained that the lower figure is the least costly benefit plan,and then the highest costly benefit plan for each noted year; and noted these figures are from the budget showing what was actually spent in covering councilmembers,so the average spent for benefits per councilmember was$1,478 in 2016,$1,778 in 2017,and$1,490 in 2018,which figures included the last month for 2018, Mr.Whitehead noted the average is higher in 2017 as compared with 2018,because we had one more councilmember who covered their full family; and the plans the council was on in 2017 sunsetted, so they took a step down in coverage beginning January 2018, and because of that, the City also paid less, so all in all, it's about$1500 per month per councilmember, which includes health, dental, and vision; and they can choose which plan they want and the City picks up the difference in cost. There was some discussion about the cost of benefits, and what the councilmember pays and what the city pays, and Mr.Driskeil noted that is a council choice and is not determined by staff,and explained that these costs will vary from year to year,for the councilmember and for the city. Mr. Simpson said personally he likes to take the budget figure and divided it by the number of councilmembers.Mr.Whitehead also noted on that handout, there is a `health reimbursement account'which was implemented to help pay For medical benefits,and that amount is determined by a resolution passed by Council. Mr. Whitehead further explained that number reflects the deductible for that particular plan,so the City decided to cover the deductible,which is an annual cost,and which can only be used for certain medical expenses as determined by the IRS. Salary Commission Meeting&inanery 12-06-2018 Page 1 of 3 Mr.Gothmann said he feels that the benefits should be irrelevant to this commissions'decision,as the charge for this commission is salary and not benefits,also that the benefits are determined by a resolution passed by council, and that council could decide at any time, not to offer any health insurance benefits; hence he said this commission should focus on the salary, and use comparative salaries of other places. Mr. Gothmann added that any salary figure that this commission decides on could be increased or decreased based on other factors,such as benefits,or analysis of their workload,or citizen comments. Mr. Driskell said he thinks this answers the question of what is a round number for benefits for council; he brought attention to the sheet showing compensation of other jurisdictions, and said Mr. Whitehead continues to gather additional data, Mr. Driskell said we continue to collect data, and once we get the survey questions from council, that will give us important data, and from there we will be able to draft a survey to be placed among other places,on the city's website. Ms. Williams distributed a handout showing Moody's ratings; she suggested that the city of Shoreline is no longer very similar to our city;and that growth fate and financial health might be something else to consider in addition to benefits. Mr. Simpson said he simply took the salaries of the mayor of mayor cities, then divided that by ten,and took out the high and the low,and the larger cities as well as the smaller cities came out to between$1300 and$1400 a month; and for councilmembers it was$1,000 to$1,200.Mr. Gothmann also distributed copies of his updated linear regressions showing only the council-manager cities, and he briefly went over some of those figures on the two graphs; he noted the `bonus' for being a mayor averaged to about 30%,and that is what our city has been paying. Concerning the list of committees our Councilmembers are associated with, Ms. Bainbridge explained that this is just informational to let this commission know the various committees; and she mentioned that different committees have different workloads, that.STA would represent a large commitment, where Visit Spokane would not,and committees like Wastewater Policy only meet annually.Mr.Driskell stated that this helps the commission have a little better understanding of some of the council's commitments,but there is a lot of variation. Ms. Williams asked about the idea of having an escalation clause or have a salary tied to some index and Mr'.Driskell explained that we are not precluded by state statute,but it is not something we have done before; he said staff members don't have an automatic escalator or COLA (cost of living adjustment), and part of that is reflective of council's desire. Mr. Simpson suggested that once the salary is established to put in a percentage the same as given to the city administrator, which suggestion prompted discussion about who determines the city manager's salary,Mr. Driskell stated that Council determines the city manager's salary so tying council's salary to the city manager's increase, would be tying their own raises into the city administrator's raises, which does not fall into the state statues procedure for changing council's salary. Mr. Driskell also noted that at any time, any citizen or councilmember could reconvene this commission. Mr. Whitehead added that if there was a decline in the economy and the council automatically received a raise, when most citizens would not due to economic decline, that could cause concern among citizens. Mr. Gothmann remarked that he feels councilmembers aren't here for the pay, but they are here because they want to serve the citizens and do something for the city,while Mr. Driskell said he agreed, he also noted that if we don't offer a fair wage,we won't attract good candidates. Going back to the data from Mr. Whitehead,Ms.Williams asked how often those other cities change salaries and could we get that data;said if we are comparing salaries to those set five years ago,some of those cities might be on the verge of changing. Mr. Whitehead said he would have to research that and Mr. Driskell suggested waiting until we have as much information on that blue sheet as possible, then determine which cities this commission wants to use for comparative purposes, and then get the most recent updated figures just from the cities to use in our comparisons.Mr.Whitehead also noted the historical average annual inflation rate is 2.5%. Concerning comparing other cities, Mr. Simpson suggested not comparing cities in the Puget Sound area since home values are twice the value of our homes,therefore,those cities and our cities are not equal. Salary Commission Meeting Summnry 12-06-201S Page 2 013 Mr. Driskell said that at the last meeting, Mr.Simpson asked him to check state law about considerations on being on this commission, in that Mr. Gothmann works for the Current magazine which is owned by Councilmember Wick. Mr.Driskell said he researched the statutes,and having Mr.Gothmann in his capacity as working for the Current,is not precluded by state law; that his employment status was known by Council and the Mayor at the time of recommending him for this commission, and there is no legal reason why he can't be on this commission. Mr.Simpson thanked Mr. Drlskell and said he brought up the issue because he thought some citizens might bring up that concern. Public Comments were solicited. Ms. Barb Howard, Spokane Valley: said she saw an article when Diana Wilhite was mayor that she spent 30 hours a week or better on committees and other things;said they put in a lot of time promoting our city; she also asked if any councilmember makes an insurance claim, does that cause the insurance rates to increase. Mr.Whitehead explained that we are part of an insurance pool through AWC(Association of Washington Cities), and we are part of thousands in their trust; said claims or lack of claims can impact our rates as insurance rates are based on claim rates;with having seven people with typical medical expenses, there will probably not be any noticeable rate change as they access their benefits. Ms. Howard said she also likes the idea of putting money aside for them,and Mr. Whitehead explained that each plan has an out-of-pocket maximum,and those funds are usually used to cover deductibles and out-of-pocket expenses; and he added that preventive care usually has no out-of-pocket expenses. Mr. Bruce Foreman, Spokane Valley: said he feels most people look for citizen servants as councihnembers; said it is good to look at data but most isn't relevant; said it seems we have a market full of people who want to become council members;and said he wants people on the council who don't have to work,perhaps retired folks;and concerning benefits,said it is a lot of money when you add in all the benefits. Mr. Driskell said that while it is true that retired people might have more time,we also want a broad view of what the community should look and feel like, and someone with a young family could give that view on needs like parks and walking paths,and again stated that having a broader view of what the community needs are is probably better addressed having younger people and retired people. Concerning the task of this commission,Mr.Robertson said that this commission should only be concerned with salaries and not benefits,and Mr.Driskell agreed,adding that this commission's task is to identify what an appropriate salary would be,taking into account different activities councilmembers have to do,and when the commission was active in 2006, they also had that task but they at least had benefits in mind, hut didn't base the salary on the benefits;and said the figures came in toughly comparable to similar jurisdictions at the time, and again stated that yes, the primary focus is salary. Mr. Robertson also asked if that state statute default amount when first forming a city is still the same as it was in 2006,and after checking,Mr. Drlskell said it has not changed:$400 for councilmembers and$500 for the mayor. Mr.Driskell noted that once we get the information back from the brief survey of councilmeniber's time,then we can work on salary ranges for the citizen survey, with one question for the council,and one for the mayor. It was determined that this commission will meet again December 13 at 4 p.m. and December 20 at 4 p.m. Mr. Simpson said he will be out of town December 23 through January I I, and said he has no problems if this commission meets while he is gone. The meeting was adjourned at 5:00 p.m. Salary Commission Meeting Summary 12-06-2018 Page 3 of 3 pokane OFFICE OF THE CITY CLERK Valley Christine Bainbridge,City Clerk 10210 E Sprague Avenue 1 Spokane Valley WA 99206 Phone: (509)720-5102 1 Fax:(509)720-5075 + www.spokanevalley.org cbuinbridge@spokanevalley.org spokancvalley.org SPOKANE VALLEY INDEPENDENT SALARY COMMISSION Spokane Valley City Hall, Conference Room N212 December 13,2018 Meeting Summary Commission Members Present: Staff Present: Bill Gothmann,Chair Staff Liaison: Cary Driskell,City Attorney Tes Sturges,Vice-chair John Whitehead, Human Resources Manager Steve Robertson Chris Bainbridge,City Clerk Chuck Simpson Kathe Williams Alternate Commissioner: Mike Moore Others Present.four citizens Meeting Summary: The meeting was convened at 4:00 p.m. Mr. Gothmann said he understands that Ms. Williams may be late but we can start the meeting now as we have a quorum,and she had asked not to delay the meeting for her. Mr, Driskell stated that Mr. Simpson had asked him a question about the authority of the charge of a salary commission to identify the salary for the council and the mayor;Mr. Driskell said he had advised him of that answer and was going to provide the answer to everyone here today. Mr. Simpson said he was asking the question that he didn't know who made that law,was it a state law and if so,who drafted the law about salary only.Mr.Driskell said that our City code section is in SVMC 2.10.020(2),purpose;and he read:"The purpose of the independent salary commission shall be to review and establish the salaries of the mayor and the council members." Mr.Driskell said that code section was passed by the City Council years ago. Mr. Gothmann said we received new city data last week, and council benefits average costs, and a chart showing percentage of growth; that this week we have the data on how long each councilmember spent in their role, Ms. Bainbridge explained the results of the survey questions submitted to couneilmcmbers as shown; that each question is answered by seven individual council members, and that each #1 is the same councilmember for each question;and the low end average and the high end average is derived from the range of figures.For example, if a councilmember's answer to the first question is 11-13,and another's answer is 5- 7, she said she averaged all the bottom figures; and then went back to average the high figures as well. She explained that this is for informational purposes to give an idea of the average range of time spent for each answer,and that as stated on the document, the councilmember responses do not correspond to their council position. Ms, Sturges said that she also added up all the answers to get the total average range of each councilmember:#1:36-52;#2: 8-1 I;#3:43-53;#4:38-46;#5: 34-37;#6; 17;#7;24-36, It was noted that Ms. Williams just arrived, Ms. Sturges said in her estimation, all but two conncilnlembers appear to be working the equivalent of a full-time job. Mr. Gothmann said he feels this commission now has all the data needed to make a decision. Mr.Whitehead mentioned that at the last meeting,there was some question about how old the data is on the blue spreadsheet, and said he again revised the data to show when the last increases occurred,as shown on the last column. Mr. Salary Commission Meeting Summary 12-13-2018 Page l at Whitehead further explained that the asterisk shown in that last column means there was a jump in their compensation but there was some data not recorded;so there was data in 2014 and different data in 2017 so it changed someplace but he is not sure when that occurred, and the year shown is the year whcrc he had the factual information. He also explained the `less than' 2008; and said he went back to 2008, and if there was no change, he didn't record a change; said it was interesting to look at that data as many of those were fairly low on the scale. Mr. Whitehead said the reports he gathered,which he didn't ask for but which some cities submitted, looked like salary commissions were setting three-year windows of time, likely in an effort not to have to convene the commission annually. Ms. Sturges asked if that is permissible per our code. Mr.Driskell replied that he doesn't believe there is a prohibition in doing that,however,he said he thinks everyone is aware that Council is very fiscally aware and takes a very responsible approach to the city's funds; and one of the ways that has played out is staff salaries;that the city has not granted a COLA (cost of living allowance) in nine or ten years;and feels there is a strong argument that if you just build in increases in how much it cost to do business,there will be an ever-expanding budget;from a management and council standpoint,we have not granted COLAs to employees;and whether that means more generally that the council would or would not be in favor of a graduated approach to their pay,said he does not know but he raised the issue because of the ever increasing cost to the city.Mr.Simpson said he would not be in favor of that because if the economy declines, private industry won't be giving their staff raises;and said he thinks this commission should just focus on the present. Mr. Whitehead added that the city government and community are fiscally conservative; the down side to future raises is if the economy declines and the future raises are built in,that could prove troublesome for not only the constituents but for councilmembers as well. Mr. Gothmann agreed and said he would not agree in treating council more favorably than council would be treating employees, so it would be better not to build in future salary increases. Further,Mr.Driskell explained that he and Mr.Whitehead also participate on the negotiating committee for the labor agreement for the city, and it is fair to say that if a COLA-like structure was built into what the council gets,we would hear that on the next negotiation,as what's good for one is good for all;and said that would create a difficult position from which to negotiate.Mr.Whitehead said the city has a performance system, and since about 2011 or 2012, we have moved away from automatic increases for staff;that we have a contract that goes into effect in January,which includes some adjustments to the pay structure. The question came up about the frequency of convening a salary commission, and Mr. Driskell said it the suggestion can come from the public or the council; and that this time it was as a result of comment from the public. Mr.Driskell mentioned that the alternate way to increase council salaries, is that council could adopt an ordinance but if they did so,any change would not be effective until the next election for their position;so they would not, in theory,benefit from any such change. Ms.Sturges asked if this committee can recommend that council salaries be reviewed every three years, and Mr. Driskell replied yes; that this commission can recommend that the Council should consider reconvening the salary commission every three, four, or five years; and that part becomes a recommendation for council discretion. It was again discussed among the commission members that councilmembers are not doing this job for the money,but for the community. Ms. Williams said she conducted an informal poll and as she was walking around, approached some people and told them of the task of this commission, and asked them their feelings of what council should be paid, and several said at the very least it should be minimum wage; adding that she doesn't know that these people answering knew councilmembers were working out of the goodness of their heart.Mr.Robertson said that the 2004 commission recommended$1200 for the mayor and$1,000 for councilmembers and that the referendum was defeated; and he asked if Mr. Driskell feels the atmosphere is different now. Mr. Driskell said the city had just incorporated in 2003 after a fifth attempt to do so;there was also a strong disincorporation effort and they had a ready group of people to contact;so it went to referendum and was over-turned in 2004;he said in 2006 he was the staff liaison and thinks the report in 2006 was more complete then 2004, in explaining the basis for the recommended change; and there was a very minor attempt to overturn that on referendum, and the petition didn't get even close to having enough signatures within the required time period,to put the issue on a ballot. Mr.Robertson asked if this commission should be concerned about a possible referendum.Mr.Driskell replied that is always a possibility;and a higher figure salary recommendation grossly disproportional to all else, that will always get people's attention, adding that there were always be some people who disagree with any Salary Commission Meeting summery 12-13-2018 Page 2 of4 increase; but said there is a greater acceptance of what this city does now. In response to a question about advertising this,Mr.Driskell said this won't be advertised,and that procedurally,this commission will analyze the data we provided,and he thinks we can likely wrap this up in another meeting or two; that he will draft the report summarizing the information and show the comparisons,and explain how this commission arrived at its decision; that once the report is finalized, that he will present the information to Council in an open session which will also help to disseminate the information; and there will be a better understanding of this process and this issue now as opposed to 2004, as it will be similar to what was done in 2006. It was also noted that it takes a hot of signatures on a referendum petition to place an issue on a ballot. Ms. Bainbridge mentioned the report needs to he published twice,at least one week apart,and the file deadline is February 4; so we will work backwards and shoot for publication January 18 and 25. Mr. Driskell said the survey will be put on our website, and Mr. Simpson suggested including what their salary is now. Mr. Driskell agreed. Mr. Driskell said he will get the draft for this commission as soon as possible,and once approved,we can get the report published,and Ms. Bainbridge added that once the report is filed,there is a window of 30 days in which to file a referendum petition. Mr. Driskell said if time permits, he will send the report out to commission members prior to a meeting,so any edits can be made and discussed at the meeting. Mr. Gothmann said he thinks the only data we don't have are public comments; and hopefully commission members will he ready to conic to an agreement; and it was agreed to have that discussion next week. The survey questions to be placed on the website were discussed, and Mr. Simpson suggested adding something to the effect that these figures are only salary and not benefits,said most people don't know they get benefits, and said he is still a strong advocate that benefits are part of the salary. Mr.Gotlunarun said the only numbers important are what salary are we recommending for Council,and what for Mayor.Ms,Williams said she feels people also need to know how many hours councilmembers generally work. It was agreed to include in the survey,the average number of weekly hours worked,about 35 hours a week,or an estimated range of 29.8 to 37.6, Mr. Simpson continued stating his view of benefits being a real bonus, or give them a salary with no benefits,or a smaller salary with benefits.There was continued discussion about what to include on the survey, what not to include,and discussion about the state minimum wage.Mr.Driskell said the purpose of the survey is to get public input on salary ranges; and that he hopes to get 100 responses, although the holidays might adversely impact the number of responses.It was agreed to include in the survey,the average 35 hours worked per week, include salary ranges from which to choose,to reflect the current numbers with 750 to 1,000 as the bottom range, then follow with consistent ranges, and to have a third item to include the survey taker's zip code in order to identify if the responder is actually a city resident. Mr. Driskell said he and Ms. Bainbridge will work to get a survey out on the website tomorrow. Mr. Gothmann said for next week he would like this commission to have specific dollar suggestions for council and percentages for the mayor,to see if by the end of that meeting, we could have something agreed upon if possible, by the end of the meeting. Mr. Driskell said after a week of having the survey out, if this commission feels we have enough data we'll go with what we have,or run it again if we need more responses;and that he suggests not having a deadline at this point for the survey. Mr. Driskell said we will do a press release,send out e-mail distribution to a list of about 1,000, and will send out a tweet;and unfortunately,there isn't time to place an ad in the newspapers. It was determined the next meeting will be Thursday, December 20 at 4 p.m. and based on what is accomplished at that meeting, we may or may not meet January 10, at 4 p.m., or perhaps to come in January 10 to vote on the report,then get it published. If the report is finalized January 10,Mr.Driskell said he would likely bring it to Council January 22,and then publish January 25 and February 1. Public comments were solicited. Ms, Barb Howard, Spokane Valley: said doesn't minimum wage go up January 1, to $12.00; and she asked if these figures are before or after taxes. Ms, Bainbridge said they are before taxes. Mr.Dan Allison,Spokane Valley:wonders about putting this out on Facebook and twitter. Ms. Bainbridge mentioned we don't use Facebook, and twitter is merely an additional way to publicize, but we will put it on our website and push the notice out about the survey,via our e-mail distribution.Mr.Dan Allison asked what Councilmember only spends 11 to 15 hours a week on their duties? Ms. Bainbridge said these figures were handed in anonymously, and Mr. Driskell noted that these figures change as councilmembers change and it is not uncommon to have one person who spends a great deal of time,and another who spends less, and he suggested not focusing on that, but to look at these as generally good numbers. Mr. Allison said Salary Commission Meeting Surnrnnry 12-132018 Page 3 014 what councilmembers make now, is way too low. Mr. John Harding. Spokane Valley: said there are some real outliers in the cities to use as comparisons, and said he wouldn't include any of the cities in the lower populations; and in the upper group, there are some cities giving their mayor three to four times more than what our councilmembers make;that he doesn't think we can look at this as an average.Mr.Driskell said this body has not decided how to use the data, they are simply different data points that could be used for some members of the commission;and we are trying to give more data for better rather than just a few comparisons, in order to give a better feel based on type of government,size and budget and what might be relevant to any salary. Mr. Harding said the job couriciimembers do on our behalf if remarkable, and that no one brought up salary issues for about 12 years is astounding, and said that it was Mr.Allison who did so this time. He also noted he wouldn't spend any time on politics, that whatever this commission comes up with, will be it, and that politics shouldn't be a concern,as that changes as the economy does;that he feels the concept should be kept narrow and not go for any long term planning. The meeting adjourned at 5:02 p.m. Salary Conunissian Meeting Summary 12-13-20111 Page 4 of 4 SCITY of poane OFFICE OF THE CITY CLERK �[ Talley a Christine Bainbridge,City Clerk 10210 E Sprague Avenue # Spokane Valley WA 99206 Phone: (509)720-5102 # Fax:(509)720-5075 # www.spokanevalley,org cbainbridge cr spokanevalley.org SPOICANE VALLEY INDEPENDENT SALARY COMMISSION Spokane Valley City Hall, Conference Room N212 December 20, 2018 Meeting Summary Commission Members Present: Staff Present: Bill Gothmann, Chair Staff Liaison: Cary Driskel I, City Attorney Tes Sturges, Vice-chair John Whitehead,Human Resources Manager Steve Robertson Chris Bainbridge,City Clerk Chuck Simpson Kathe Williams Others Present: two citizens Meeting Summary: The meeting was convened at 4:00 p.m. Mr. Gothmann noted in case we have meetings further into January, that he would be out of town January 16 through 24. Mr. Driskell said the projected date for the report is January 10, 2019, depending on how much gets accomplished tonight; and he clarified that in order to get the report into the appropriate council agenda packet on time,a better date might be January 9,2019. To briefly recap the previous meeting,Mr. Gothmann asked Ms. Sturges about the averages she calculated last week from the amount of time spent per councilmember, and she noted the average weekly time spent was 29.8 on the low end, and 37.6 on the high end,which corresponds with the range of hours reported by each councilmember. The results from the on-line survey was discussed which was included on the draft `Final Report' submitted by Mr, Driskell. In looking at the survey results, Mr. Gothmann noted that citizens suggest a salary between $1,000 and $1,250. Ms. Sturges said for the councilmembers, there is 43% in favor of the $750 to $1,000; 18%on the bottom range, and about 38%in the middle; and based on that, said she thinks the salary would fall between$1,000 and$1,500. She noted the results were similar for the salary of the mayor; with 35%in the low range, 31%in the next two ranges combined, and 33%in the top two ranges.Mr. Simpson said those figures are about in line with what he was considering. Mr. Whitehead said he had no further updates on his data. In reviewing the blue spreadsheet, Mr. Driskell asked if commissioners had thought about which cities to use as comparison cities. Regarding his linear regression charts with the two graphs, one for Council-Manager only and eliminating Spokane Valley, and the other for council-manager only eliminating Vancouver, Belleview and Spokane Valley, Mr. Gothmann said he would prefer to look at a trend line, and said he found that the cities on both sides of the state follow the same trend line in looking at size of the city and council salary; and said if you include Spokane Valley, he comes up with a figure of about$1,279,which he said includes Bothell,Lacey,Olympia,Shoreline,Burien, Richland,Pasco,Kennewick,Kirkland and Yakima;that they all follow the trend line.Mr.Driskell,in seeking clarification, said that it appears in answer to which cities to use for comparisons, that Mr. Gothmann is identifying all of the cities included on that bottom graph, and Mr. Gothmann concurred that includes all the cities listed from Des Moines to Yakima, and said he therefore is ready to offer a figure, but Mr. Driskell suggested waiting until all the commissioners agree on which cities to use, and Mr. Driskell asked if anyone had any other suggestions. Ms, Bainbridge asked if the 2006 report showed how many cities were used for comparisons,because this list includes 15 cities.Mr. Driskell said there were four cities used last time but the ability to collect data last time was a bit more difficult as compared to this time, as this time we have the benefit of Mr. Whitehead's assistance. Concerning the mayor's salary, Mr. Gothmann said according to the RCW, initially the salary would be 25%greater than the councilmembers, and the figure our present council Salary Commission Meeting Summary 12-20-2018 Page 1 of 2 has is 30%; said he looked at the difference for the mayor's salary for all the cities on the list, and those average 22%, and said he likes a figure of 25%. Going back to the list of cities to use for comparisons, after further brief discussion,it was ultimately unanimously decided to just use the nine cities on the bottom graph, which include Lacey through Yakima.Mr. Driskell said he will include those nine cities into his draft report, with a note that after looking at several cities,this commission feels those cities are more directly comparable, and show that in Appendix III. Mr. Gothmann asked the commissioners if everyone agrees that the salaries of the present councilmembers are too low, and they all said agreed wholeheartedly. Mr. Gothmann invited public comments. Ms.Barb Howard, Spokane Valley,mentioned she has an article at home,possibly from 2009,that indicates then Councilmember Diana Wilhite was putting in 30 hours a week. Mr. Driskell said there are several factors that influence that number,one is the number of committees internal and external,the point of someone's working career as if someone is working they can't necessarily spend as much time as those who are not; and he cautioned that what it was in 2012 will be different from now which will again be different in 2022.Ms. Howard asked if there is any difference in benefits from what council gets and what staff gets. Mr. Driskell said that is outside the consideration of what this commission thinks the salary should be; and Mr. Whitehead said the plans and the benefits are the same, however, staff pays a flat rate for their insurance, and he noted that staff retirement is required by Washington State. There were no other public comments. Mr. Robertson said he feels the positions of mayor and councilmember are very important and carry with it great responsibility; that there is a sense of volunteerism, but their current pay is extraordinarily low. Mr. Driskell noted he thinks there is a sense of volunteerism in what the public expects and from those who serve, but that is a factor as to why they wouldn't get the full value of their work because they are contributing to the community; he said that is not to say that there is an expectation they will volunteer to do it, but rather it is a complex analysis of the amount of work, level of responsibility, size of the budget, the public safety issues being addressed, and the big picture is it is very important for the health of our community, is that they want to do this because they have a sense of community and volunteerism,and several others agreed there is a sense of volunteerism,but they should also be compensated for their work,including comments about the minimum hourly wage which will be$12.00 beginning this January,and Mr.Simpson noted again that benefits also play a part in the salary. After further discussion about minimum wage, the average amount of hours worked of about 25 to 30,responsibilities of the positions and the importance of the work,that there has been no increase in salaries for about 12 years, benefits, average wages of mayors and councilmembers of other cities, and some salary ranges to consider, it was decided unanimously that the salary of a councilmember should be $1415, and the salary of the mayor should be $1775.00, which is about 25% higher than that of a councilmember. It was noted the$1415 was based on$11.00 an hour for 30 hours a week. Mr. Driskell reminded everyone that when he writes the report,those nine comparable cities will be included, that he will include a general statement of how this commission arrived at the $1415 figure; and that this commission recommends the council consider reconvening a salary commission every three years. Mr. Driskell said once the final draft of the report is complete, it will be e-mailed to commission members; and he cautioned commissioners not to `reply all' to such e-mail as we don't want any perception of an illegal meeting. Mr.Driskell suggested perhaps the next meeting would only last five to ten minutes,and if there are no changes, the report will be signed by the Mr. Gothmann as chair of the commission, at which time this commission's work will be complete.Mr. Driskell said once that is accomplished,he will make a presentation to council,that commission members are free to attend if they choose,and that there will be no public comment on this report nor any discussion about it from council, as it would merely be presented to council as information;and that the goal is to give the report to Council January 15,and to publish the report January 18 and 25; and that the January 25 publication date triggers the thirty-day appeal period for the public should anyone wish to file a referendum petition; he noted that he would have to research the number of signatures required on a referendum petition;but if there is no referendum,at the 31't day after the January 25 publication, the salary would become final and part of the budget without any further action required, and would be reflected as such later by a budget amendment.It was determined that this commission's next and last meeting will be Tuesday,January 8,at 4:00 p.m. The meeting adjourned at 5:04 p.m. Salary Commission Meeting Summary 12-20-2018 Page 2 of 2 sCITY po an OFFICE OF THE CITY CL)rRI[ 4000.\7ailey Christine Bainbridge,City Clerk 10210 E Sprague Avenue • Spokane Valley WA 99206 Phone: (509)720-5102 • Fax: (509)720-5075 ♦www.spokanevalley.org cbainbridge@spokanevalley.org spokanevalley.org SPOKANE VALLEY INDEPENDENT SALARY COMMISSION Spokane Valley City Hall, Conference Room N212 January 8, 2019 Meeting Summary Commission Members Present: Staff Present: Bill Gothrmann, Chair Staff Liaison: Cary Driskell,City Attorney Tes Sturges,Vice-chair Chris Bainbridge, City Clerk Steve Robertson I(athe Williams Absent: Chuck Simpson Others Present: none Meeting Summary: The meeting was convened at 4:00 p.m. Mr. Driskell asked if there were any proposed changes to the finalized draft report. There were none. Mr. Driskell gave a brief summary of the report, the process this committee used to determine the new salaries, and the final process of giving this report to Council during their January 15, 2019 meeting; that the salary schedule will be published January 18 and 25,and if no referendum petition is filed by thirty days after January 25, the new salaries will be as stated, with no further action to be taken by Council. It was moved by Ms. Sturges,seconded and unanimously agreed to approve the 2018Independent Salary Commission Report, with the exception that the Clerk will add the meeting summary from the January 8, 2019 meeting. The meeting adjourned at 4:11 p.m. Salary Commission Meeting Summary 01-08-2019 Page I of I DRAFT ADVANCE AGENDA as of November 12,2021; 10:00 a.m. Please note this is a work in progress;items are tentative To: Council& Staff From: City Clerk,by direction of City Manager Re: Draft Schedule for Upcoming Council Meetings Nov 23,2021,Formal Meeting,6:00 p.m. [due Tue Nov 16] 1. Consent Agenda(claims,payroll,minutes) (5 minutes) 2.Motion Consideration: 2022 Comp Plan Docket—Chaz Bates (10 minutes) 3.Motion Consideration: Sullivan&Wellesley Intersection Project Update—Bill Helbig (10 minutes) 4.Admin Report: 2022 Fee Resolution— Chelsie Taylor (5 minutes) 5.Admin Report: SVPD Update—Chief Ellis (15 minutes) 6.Admin Report: Advance Agenda—Mayor Wick (5 minutes) 7. Info Only: Department Monthly Reports [*estimated meeting: 50 mins] Nov 30,2021,Study Session (meeting cancelled: Thanksgiving Holiday Week) Dec 7,2021, Special Meeting,with 4th District Legislators, 5:00— 5:45 p.m. Dec 7,2021, Study Session,6:00 p.m. [due Tue Nov 30] ACTION ITEMS: 1.Motion Consideration: Street Sweeping Contract—Bill Helbig (10 minutes) 2.Motion Consideration: Street Maintenance Contract—Bill Helbig (10 minutes) NON-ACTION ITEMS: 3.Advance Agenda—Mayor Wick (5 minutes) [*estimated meeting: 25 mins] Dec 14,2021,Formal Meeting,6:00 p.m. [due Tue Dec 7] 1. Consent Agenda(claims,payroll,minutes) (5 minutes) 2. Resolution 21-009 Amending Fees for 2022—Chelsie Taylor (5 minutes) 3.Motion Consideration: Lodging Tax Awards for 2022— Chelsie Taylor (10 minutes) 4.Admin Report: Advance Agenda—Mayor Wick (5 minutes) [*estimated meeting: 25 mins] Dec 21,2021, Study Session (with action items),6:00 p.m. [due Tue Dec 14] 1. Consent Agenda(claims,payroll,minutes[normally on the Dec 28 meeting]) (5 minutes) 2.Mayoral Appt,Nomination of Student for AWC Ctr for Quality Communities Grant Award—Mayor(5 min) 3.Advance Agenda—Mayor Wick (5 minutes) 4. Info Only: Department Monthly Reports(normally on 4th Tue) [*estimated meeting: mins] Dec 28, 2021,Formal Meeting (meeting cancelled: Christmas Holiday) January 4,2022, 5:30 p.m.Swearing in of newly elected councilmembers [Note:This is NOT a special meeting,but an opportunity to administer the oath of office to newly elected councilmembers.] Jan 4,2022,Study Session,6:00 p.m. [due Tue Dec 28] 1. Council Officer Selections for Mayor and Deputy Mayor— Chris Bainbridge (10 minutes) 2. CDBG Project Prioritization—Chaz Bates (10 minutes) 3.Advance Agenda—Mayor (5 minutes) [*estimated meeting: mins] Draft Advance Agenda 11/12/2021 11:49:43 AM Page 1 of 2 Jan 11,2022,Formal Meetin2 Format,6:00 p.m. [due Tue Jan 4] Proclamation: Martin Luther King, Jr. Day 1. Consent Agenda(claims,payroll,minutes) (5 minutes) 2. Resolution 22- ,Banking Authority—Chelsie Taylor (5 minutes) 3.Mayoral Appointments: Planning Commissioners (5 minutes) 4.Mayoral Appointments: Lodging Tax Advisory Committee Members (10 minutes) 5.Mayoral Appointments: Citizens to misc. agency appointments (5 minutes) 6.Mayoral Appointments: Councilmembers to various committees and boards (10 minutes) 7.Motion Consideration: CDBG Project Prioritization—Chaz Bates (10 minutes) 8.Admin Report: Training Public Records Act, Open Public Meetings—Cary Driskell,Erik Lamb(30 minutes) 9.Admin Report: Advance Agenda—Mayor (5 minutes) [*estimated meeting: 85 mins] Jan 18,2022, Study Session,6:00 p.m. [due Tue Jan 11] 1.Advance Agenda—Mayor (5 minutes) Jan 25,2022,Formal Meetin2,6:00 p.m. [due Tue Jan 18] 1. Consent Agenda(claims,payroll,minutes) (5 minutes) 2.Admin Report: Advance Agenda—Mayor (5 minutes) 3. Info Only: Department Monthly Reports [*estimated meeting: 50 mins] Feb 1, 2022,Study Session,6:00 p.m. [due Tue Jan 25] 1.Advance Agenda—Mayor *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Appleway Trail Amenities Artwork&Metal Boxes Consolidated Homeless Grant Core Beliefs Resolution Governor Authority/Emergency Situations(info only) HHAA Funds Mirabeau Park Forestry Mgmt. Neighborhood Restoration No Parking Zones Park Lighting PFD Presentation Prosecutor Services Residency Ridgemont Area Traffic St. Illumination(owners,cost,location) St. O&M Pavement Preservation Vehicle Wgt Infrastructure Impact Water Districts&Green Space Way Finding Sign Draft Advance Agenda 11/12/2021 11:49:43 AM Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 16, 2021 Department Director Approval Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ® executive session AGENDA ITEM TITLE: EXECUTIVE SESSION: Litigation; Evaluate the qualifications of an applicant for public employment GOVERNING LEGISLATION: RCW 42.30.110(1)(i) and RCW 42.30.110(1)(g) PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: OPTIONS: RECOMMENDED ACTION OR MOTION: "I move that Council adjourn into executive session for approximately one hour to discuss litigation, and also to evaluate the qualifications of an applicant for public employment; and that no action will be taken upon return to open session." BUDGET/FINANCIAL IMPACTS: STAFF CONTACT: Cary Driskell, John Whitehead ATTACHMENTS: