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2024, 10-15 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, October 15, 2024 6:00 p.m. Remotely via ZOOM Meeting and In Person at Spokane Valley City Hall, Council Chambers 10210 E. Sprague Ave. Spokane Valley, WA 99206 Council Requests Please Silence Your Cell Phones During Council Meeting NOTE: Members of the public may attend Spokane Valley Council meetings in-person 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 making a comment via Zoom, comments must be received by 4:00 pm the day of the meeting. Sign up to Provide Oral Public Comment at the Meeting via Calling-In Submit Written Public Comment Prior to the Meeting Join the Zoom WEB Meeting ------------------------------------------------------------------------------------------------------------------------------- CALL TO ORDER INVOCATION: PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government. This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep remarks civil. Remarks will be limited to three minutes per person. If a person engages in disruptive behavior or makes individual personal attacks regarding matters unrelated to City business, then the Council and/or Mayor may end that person’s public comment time before the three-minute mark. To comment via zoom: use the link above for oral or written comments as per those directions. To comment at the meeting in person: speakers may sign in to speak but it is not required. A sign-in sheet will be provided at the meeting. ACTION ITEMS: 1. Public Hearing #2: 2025 Budget – Chelsie Taylor \[public comment opportunity\] 2. Motion Consideration: EVSD Pedestrian Undercrossing Agreement – Bill Helbig, Tony Beattie \[public comment opportunity\] Council Agenda October 15, 2024 Page 1 of 2 NON-ACTION ITEMS: 3. Admin Report: Retail Strategies Annual Update – Susan Nielsen, Retail Strategies Representatives 4. Admin Report: 2025 Draft Federal Legislative Agenda – Virginia Clough, Mike Pieper 5. Admin Report: SREC Update – Erik Lamb, Chief Ellis 6. Admin Report: 2024 Budget Amendment – Chelsie Taylor INFORMATION ONLY (will not be reported or discussed): GENERAL PUBLIC COMMENT OPPORTUNITY: General public comment rules apply. COUNCIL COMMENTS CITY MANAGER COMMENTS ADJOURNMENT Council Agenda October 15, 2024 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 15, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE:Public Hearing #2 on 2025 Budget. GOVERNING LEGISLATION: State budget law. PREVIOUS COUNCIL ACTION TAKEN: No formal Council action has been taken on the 2025 Budget. BACKGROUND: This marks the fifth occasion where the Council will discuss the 2025 Budget and by the time the Council is scheduled to adopt the 2025 Budget on November 19, 2024, Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from citizens: June 11 Council Budget Workshop August 27 Admin report: Estimated 2025 revenues and expenditures September 17 Public hearing #1 on 2025 revenues and expenditures October 8 City Manager’s presentation of preliminary 2025 Budget October 15 Public hearing #2 on 2025 Budget October 29 First reading on ordinance adopting the 2025 Budget November 19 Public hearing #3 on 2025 Budget November 19 Second reading on ordinance adopting the 2025 Budget This evening’s meeting represents the second public hearing on the 2025 Budget and the purpose of the hearing is to consider input from the public on the preliminary 2025 budget. The 2025 Budget currently includes several of the Supplemental Budget Requests that were th presented at the June 11 Budget. These were included in section 23 of the workshop binder. The overall impact of the Supplemental Requests is an increase of $90,000 in nonrecurring costs in the General Fund, $100,000 in the Stormwater Fund #402 ($50,000 in recurring costs and $50,000 in nonrecurring), and $175,000 in the Equipment Rental and Replacement Fund #501. The Supplemental Requests included in the General Fund are related to repairs and replacement of equipment or buildings at the Precinct and CenterPlace. The amount in the Stormwater Fund #402 is for the acquisition an ongoing licensing costs of a new asset management software for Stormwater infrastructure. The amount in the Equipment Rental and Replacement Fund #501 is for the replacement of a snow plow, and the funding for the replacement is already set aside in that fund. The summary sheet for the Supplemental Budget Requests is included as an attachment to this report with highlights showing the items that were included in the draft budget. There has been one change to the 2025 Budget worksheets since the October 8, 2024 presentation of the budget. This change was to add grant proceeds of $417,000 to the General Fund recurring revenues for the Community Oriented Policing Hiring Grant that was recently awarded to the City to help partially fund the 10 new officer positions included in the 2025 Budget proposal. The change is indicated in blue in the attached budget summary worksheets. 1 2025 Budget Overview: The 2025 Budget currently includes appropriations of $149,629,785 including $58,300,103 in capital expenditures, comprised in-part of: o $6,488,645 in Fund #303 Street Capital Projects. o $1,861,761 in Fund #309 Park Capital Projects. o $2,000,000 in Fund #311 Pavement Preservation. o $41,241,197 in Fund #314 Railroad Grade Separation Projects. o $2,500,000 in Stormwater Management Fund #402 and Aquifer Protection Area Fund #403 projects. To partially offset the $56,300,103 in capital costs we anticipate $46,087,958 in grant revenues which results in 81.86% of capital expenditures being covered with State and Federal money. Budgets will be adopted across 31 separate funds. The funded full-time equivalent employee (FTE) count will decrease in 2025 by 2 to 116.25 from 118.25 in the 2024 Budget. This decrease is comprised of: o Decrease of three vacant positions, including a Senior Engineer in Engineering, an Office Assistant in Building, and a Maintenance Worker in Parks, that are not being funded due to budget constraints in the General Fund. o Increase of one new Public Safety Coordinator position that is included as part of the first phase of increases to Law Enforcement related positions that were approved by Council in February 2024. Pertaining Specifically to the General Fund: The 2025 recurring revenue estimate of $63,655,300 is $2,332,200 or 3.8% greater than the 2024 proposed amended budget of $61,323,100. The 2025 recurring expenditure proposal of $63,236,092 is $3,583,185 or 6.01% greater than the 2024 proposed amended appropriation of $59,652,907. o Including the 12 new Law Enforcement related positions, costs for Public Safety increased by 13.94% while all other General Fund Departments decreased by 5.46%. Budgeted recurring revenues currently exceed recurring expenditures by $419,208 or 0.66% of recurring revenues. Nonrecurring expenditures total $1,523,722 and include: o $50,000 for Information Technology expenditures including: $20,000 to replace outdated copiers $20,000 to replace wireless access points $10,000 for a software contingency o $910,000 for the replacement of police vehicles This was originally part of the recurring expenditures but is now being done as a nonrecurring item as funding is available due to budget constraints in the General Fund. o $90,000 for various Facilities items including: $30,000 to replace the last in-ground vehicle lift at the Precinct $60,000 to replace carpeting and wallpaper at CenterPlace o $473,722 transfer out to the Public Safety Equipment Replacement Fund #503 for future replacement costs of police vehicles already purchased in prior years 2 This was originally part of the recurring expenditures but is now being done as a nonrecurring item as funding is available due to budget constraints in the General Fund. The total of 2025 recurring and nonrecurring expenditures exceeds total revenues by $1,104,514. The projected ending fund balance for the General Fund at the end of 2025 is currently $37,750,374 or 59.7% of recurring expenditures. Other Funds: 2025 Budget appropriations (expenditures) in the other funds total $84,869,971 as follows: FundFund2025 NumberNameAppropriation 101Street Fund9,250,085 103Paths and Trails Fund0 104Hotel / Motel Tax - Tourism Facilities Fund0 105Hotel / Motel Tax Fund923,000 106Solid Waste Fund119,289 107PEG Fund73,000 108Affordable & Supportive Housing Sales Tax Fund0 109Tourism Promotion Area Fund1,275,000 110Homeless Housing Program Fund344,000 111Transportation Benefit District Fund2,785,000 120CenterPlace Operating Reserve Fund0 121Service Level Stabilization Reserve Fund0 122Winter Weather Reserve Fund500,000 204Debt Service Fund970,950 301REET 1 Capital Projects Fund1,728,150 302REET 2 Capital Projects Fund1,891,950 303Street Capital Projects Fund6,488,645 309Parks Capital Projects Fund1,861,761 310Civic Facilities Capital Projects Fund0 311Pavement Preservation Fund2,050,000 312Capital Reserve Fund4,990,123 314Railroad Grade Separation Projects Fund41,241,197 315Transportation Impact Fee Fund0 316Economic Development Capital Projects Fund0 402Stormwater Management Fund5,692,821 403Aquifer Protection Area Fund1,000,000 501Equipment Rental and Replacement Fund185,000 502Risk Management Fund900,000 503Public Safety Equipment Replacement Fund0 632Passthrough Fees & Taxes Fund600,000 84,869,971 Primary sources of revenues in these other funds include: Motor Vehicle Fuel Tax revenue that is collected by the State and remitted to the Street Fund is anticipated to be $1,969,700. Telephone Tax revenues remitted to the City that supports Street Fund operations and maintenance are anticipated to be $900,000. 3 Real Estate Excise Tax (REET) revenues that are in large part used to match grant financed street projects are anticipated to total $3,000,000. Hotel / Motel Tax revenues that are dedicated to the promotion of visitors and tourism are anticipated to be $1,490,000 ($900,000 in the Hotel/Motel Tax Fund #105 and $590,000 in the Hotel/Motel Tax – Tourism Facilities Fund #104). Tourism Promotion Area (TPA) Fees that are collected in the Tourism Promotion Area Fund that are dedicated to the promotion of visitors and tourism are anticipated to be $1,300,000. Vehicle License Fees that are dedicated to use on the City’s pavement management program are anticipated to be $2,785,000 in the Transportation Benefit District Fund. Stormwater Management Feesthat are estimated at $6,170,000. Funding Challenges: Revenue collections are moderating after the record high collections seen subsequent to the COVID-19 pandemic. Growth in General Fund recurring revenues is flattening and estimated to be approximately 1.17% in 2025, which is not keeping pace with the increase in inflation driven recurring expenditures of 6.35%. The City has identified the need for additional Law Enforcement personnel through a consultant study. The study calls for 29 additional Law Enforcement related positions of which 10 are included in the 2025 proposed budget. City Council is considering how to implement the remaining 19 positions, which will need to include discussion of potential additional revenue sources and balancing the cost of public safety against other City priorities and services. Funding pavement preservation and other transportation and infrastructure needs. o Maintaining the City’s current street network is a high priority. It is a challenge to balance the needs of local access streets and arterials and to provide adequate funding to maintain the pavement condition of both. Also, due to revenue constraints, the General Fund is no longer able to provide funding to support the pavement management program which has historically been provided at about $1 million annually. o Greater reliance on REET revenues to support the City’s pavement management program will necessitate the prioritization of capital projects with grant funding in order to maximize the City’s use of resources. This may cause streets that are not eligible for grant funding, such as residential local access street, to degrade faster than the City can afford to fix them. o Railroad grade separation projects (overpasses and underpasses) and other large street projects are exceptionally expensive endeavors and are largely beyond the City’s ability to finance through existing sources of revenue. The City has been very successful in securing funding for the Barker Rd. Grade Separation and Pines Rd. Grade Separation projects; however, funding is still needed for other grade separation projects as well as other large-scale transportation improvements within the City. Establishing a Homeless and Housing program for the City and identifying dedicated funding for this program. OPTIONS: State law requires a public hearing on the preliminary 2025 budget; and this is the second of such hearings. RECOMMENDED ACTION OR MOTION: As the purpose of the public hearing is to gather input from the public regarding the 2025 Budget, no action is requested at this time. However, if Council wishes to make any changes to the 2025 Budget, this is an ideal time to communicate those changes to staff so that they may be incorporated into the final budget book in time for schedule adoption on November 19, 2024. 4 BUDGET/FINANCIAL IMPACTS: Given that the budget is not scheduled to be adopted by the Council until November 19, 2024, it is possible the figures may be modified as we refine estimates of revenues and expenditures. However, no changes are anticipated at this time. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: Power Point presentation Summary of 2025 Supplemental Budget Requests Draft 2025 Budget Book as of October 15, 2024, will be available under separate cover 5 $2 million in Street Fund 101$900k in Street Fund 101$3 million in REET Funds 301 & 302$1.5 million in Hotel/Motel Tax Funds 104 & 105$1.3 million in TPA Fund 109$2.8 million in Street Fund 101$6.2 million in Stormwater Fund 402 HOMELESS & HOUSING PROGRAM TRANSPORTATION FUNDING LAW ENFORCEMENT POSITIONS REVENUE GROWTH NOT KEEPING PACE CITY OF SPOKANE VALLEY, WA 6/11/2024 2025 Budget Supplemental Requests Account NumberAccount TitleDescriptionAmount #001 - General Fund Facilities nPM521599-564005nPM521599-564005Capital MachinerCapital MachinerCapital Machineryyyyyyy & Equipment & Equipment & Equipment Replace last in-ground vehicle liftReplace last in-ground vehicle lift 30,00030,000 gg Repair & Maint. Repair & Maint.Replace carpeting at CenterPlaceReplace carpeting at CenterPlaceReplace carpeting at CenterPlace 30,00030,000 nCX575500-548007BuildinnCX575500-548007BuildinnCX575500-548007Buildin Replace wallpaper in the Great Room at Replace wallpaper in the Great Room at nCX575500-548007Building Repair & Maint.nCX575500-548007Building Repair & Maint.nCX575500-548007Building Repair & Maint.CenterPlaceCenterPlace 30,00030,000 nTo be determinedReplacement Fund Establish asset replacement fund?? 90,000 Parks & Recreation nCP594759-564001Capital Furniture & Equipment CenterPlace Great Room audio refresh 80,000 80,000 Total General Fund170,000 recurringr0 nonrecurringn170,000 170,000 #402 - Stormwater Fund Temp/Seasonal Wages, Taxes & SW531000-511000/52100X rBenefits Two interns to assist Stormwater program 56,450 nSW594319-564012nSW594319-564012Capital Computer SoftwareCapital Computer Software Asset management systemAsset management systemAsset management system for Stormwater for Stormwater 50,00050,000 Recurring licensing costs for asset Recurring licensing costs for asset rSW531000-548031rSW531000-548031rSW531000-548031Software LicensesSoftware Licenses managementmanagementmanagementmanagement system system 50,00050,000 Total Stormwater Fund156,450 #501 - Equipment Rental & Replacement Fund#501 - Equipment Rental & Replacement Fund#501 - Equipment Rental & Replacement Fund FM594420-564006FM594420-564006Snow PloSnow Ploww replace one snow plowreplace one snow plow 175,000175,000 Total Equipment Rental & Replacement Fund175,000 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 15, 2024 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 – East Valley School District Pedestrian Undercrossing Agreement GOVERNING LEGISLATION: RCW 35.77.010, Perpetual Advanced Six-Year plans for coordinated transportation program expenditures. PREVIOUS COUNCIL ACTION TAKEN: 11/21/2021: Administrative Report discussing the City’s Sullivan/Wellesley Intersection Project combined with the County’s Bigelow Gulch Road Project. 10/01/2024: Administrative Report outlining the proposed East Valley School District Undercrossing Interlocal Agreement BACKGROUND: In 2020, the City and Spokane County began a coordinated construction effort to improve the Sullivan Road/Wellesley Avenue intersection and construct the Bigelow Gulch Corridor Project. The efforts were coordinated as the County’s Bigelow project connected to the City’s intersection project. Construction commenced in the spring of 2022 and the roadway and intersection were open to the public in the fall of 2022, with final completion given in the fall of 2023. The new Bigelow Gulch connection through the East Valley School District’s property impacted the District’s operations between the East Valley High School site and the East Valley Middle School site. Additionally, students trying to cross the proposed 5-lane roadway would be in jeopardy due to the significant increase in traffic. To mitigate the impacts to the District, the roadway project required the construction of a pedestrian undercrossing. In order for the District to use and provide normal maintenance of the pedestrian undercrossing, an Interlocal Agreement (ILA) is necessary. City and District staff have developed the attached ILA outlining the responsibilities of each agency for the undercrossing. The ILA was approved by the East Valley School District Board on September 24, 2024. st At its October 1meeting, City Council provided consensus to bring the agreement forward for a motion consideration to approve. OPTIONS: 1) Motion to approve the Interlocal Agreement with East Valley School District, or 2) take other appropriate action. RECOMMENDED ACTION OR MOTION: Move to authorize the City Manager to execute the Interlocal Agreement with the East Valley School District for use of the Sullivan Road Pedestrian Undercrossing. BUDGET/FINANCIAL IMPACTS: None at this time. The agreement solidifies the current maintenance practices by each agency. STAFF CONTACT: Bill Helbig, PE, Public Works Director ___________________________________________________________________________ ATTACHMENTS: PowerPoint Interlocal Agreement – Final Version City/County Projects Sullivan Road Progress Road Progress Road Agreement Provisions CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 15, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Retail Recruitment Update GOVERNING LEGISLATION: None PREVIOUS COUNCIL ACTION TAKEN: Some of Council’s previous actions include: 2016, 03-08: Admin Report with CAI 2017, 09-12: Admin Report, retail recruitment update 2018, 07-31: Admin Report, retail recruitment update 2019, 01-19: Admin Report, retail recruitment update 2021, 01-19: Admin Report, retail recruitment update 2021, 09-14: Admin Report, retail recruitment update 2022, 10-22: Admin Report, retail recruitment update 2023, 10-10: Admin Report, retail recruitment update BACKGROUND: In 2015, the City engaged the services of Community Attributes, Inc. (CAI) to develop a retail improvement strategy and action plan to enhance the City’s retail offerings. In 2016, the City updated its comprehensive plan and development regulations that incorporated many of the strategies and actions identified in the study, such as increased flexibility for retailers, increased residential density along commercial corridors, and new opportunities for neighborhood commercial. In late 2017, the City engaged Retail Strategies, a retail national recruiting firm, consistent with the implementation strategy of the CAI study. Since 2017, the City has been working with Retail Strategies on retail recruitment and market trends, specifically identifying retail recruitment and attractions that are unique to the region and located in the City of Spokane Valley. Their work has included identifying retail gaps, exploring national retailers moving to new geographies (west and north), retail trade area research, regular updates of the City’s shopping center and retail corridors, and continuing retail recruitment efforts including representation at the International Council of Shopping Center conferences and developing relationships with retailers, brokers, developers, and key industry contacts on behalf of the City. Tonight, Ms. Brooke Hill and Mr. John Mark Boozer of Retail Strategies will provide an update on their recent in-market analysis, retail recruitment successes, in-process and future retail pursuits, retail trends, and regional retail expansions. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS:. The 2025 contract is budgeted for $35,000. STAFF CONTACT: Susan Nielsen, Economic Development Specialist ATTACHMENTS: Retail Strategies presentation. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 15, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE: Admin Report on the Draft2025 Federal Legislative Agenda GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: The 2024 Federal Legislative Agenda was adopted on December 12, 2023 and amended on March 12, 2024 to add a policy concerning the preservation of the Columbia River System and Lower Snake River Dams. BACKGROUND: Federal lobbyist Mike Pieper of Cardinal Infrastructure will join us virtually to provide a recap of 2024 federal legislative efforts and co-present the first draft of the 2025 Federal Legislative Agenda that includes capital projects, priority policies and support for a regional initiative. 2025 DRAFT FEDERAL LEGISLATIVE AGENDA The proposed 2025 Federal Legislative Agenda is intended as a communication tool for meetings with our Congressional delegation, their staff and federal agencies to advance City of Spokane Valley capital projects and priority policies. Depending on the outcome of our two pending FY 2025 Congressionally Directed Spending (CDS) requests, this agenda may be amended to adjust the transportation project descriptions and funding requests. The current draft is formatted similarly to our State Legislative Agenda with more specific policy statements compared to previous federal agendas to provide for more proactive and targeted engagement. The graphics on page 1 are currently being updated by our Communications Department and will be finalized prior to Council’s adoption of the agenda. CAPITAL PROJECTS Capital projects on the 2025 Legislative Agenda include the same four transportation projects as the 2024 document. This year, the agenda also includes the cross country course fieldhouse, also known as the clubhouse. Funding for this project may be available through the Economic Development Initiative (EDI) program offered by the U.S. Dept. of Housing and Urban Development (HUD). The federal request is $3.5 million, the estimated cost of the clubhouse. Barker/I-90 Interchange This interchange is the most important element of this regional corridor due to immense industrial and residential growth spanning Spokane Valley, Spokane County and Liberty Lake. The City seeks federal, state and local partnerships to replace the existing two-lane bridge with a new four-lane bridge as well as to replace the two single-lane roundabouts with two-lane roundabouts. The City has a pending $3 million CDS request for FY 2025 sponsored by U.S. Rep. Cathy McMorris Rodgers and recently added a $1 million request on the 2025 State Legislative Agenda to complete funding for design, estimated at $4 million. South Barker Road Corridor This corridor is a series of city projects and one WSDOT project from Mission Avenue to th the city boundary just south of 8 Avenue to improve intersections and add capacity to better manage extensive growth in the city, county and neighboring Liberty Lake. The projects are either planned or in process with one project completed. For more information about the projects along the corridor, please visit www.spokanevalleywa.gov/324 . Argonne Bridge at I-90 This project will address the critical bottleneck on this bridge over I-90 and is a companion project to Spokane Transit Authority’s (STA) future Park and Ride Facility that is expected to be constructed by 2028 and is fully funded by STA and WSDOT. The city’s project will reconstruct the existing bridge and add a third lane to improve safety and traffic flow. A new shared-use path will add pedestrian and bicycle facilities to improve safe mobility for all users. The City is currently selecting a consultant to begin initial design and scoping and will collaborate with STA and WSDOT to deliver this companion project. More information can be found at www.spokanevalleywa.gov/702. A pending CDS award for FY 2025 in the amount of $2 million was sponsored by Senator Maria Cantwell. Sullivan/Trent Interchange This project will reconstruct the existing interchange at Sullivan Road and Trent Avenue (SR 290) and replace both Sullivan Road bridges over the BNSF Railway tracks and four lanes of Trent. The existing signalized intersections will be replaced with a "peanut" roundabout. This project seeks to improve mobility and safety for all users including vehicles, pedestrians and bicyclists. A shared-use path will be added along the west side of Sullivan Road and a new, wider sidewalk will be built on the east side. More project information can be found at www.spokanevalleywa.gov/330. The City has secured $10.6 million in federal and state funding for the engineering and right-of-way phases of the project and funding continues to be sought for the construction phase. The City is considering submitting a FY 2025 RAISE grant request. Cross County Course Fieldhouse On October 16, the City breaks ground on its new cross country course on 62 acres of property on the north side of the Spokane River at Flora Road. Phase I construction will be completed in fall 2025 and includes the course with varying lengths, restrooms and a limited parking area. Phase II construction will include a fieldhouse that provides a drug testing facility, packet pick up and coaches/officials meeting room, medical room, storage for course maintenance and equipment, restrooms for 2,000 attendees, an elevated stage area (aka crow’s nest) for announcers at the finish line, event management room, small kitchen space and additional parking. Earlier this month, NCAA announced that this course was selected to host the 2027 Division I Men’s and Women’s Cross Country Regional event that will draw athletes, their teams, officials and guests to the City of Spokane Valley. The City continues to work with Spokane Sports to program this facility and promote sports tourism. POLICY PRIORITIES Policy priorities include Public Health and Safety, Transportation and Infrastructure, Housing and Homelessness, Economic Development and Workforce and Value of Hydropower. These general categories align more closely with the 2025 City Council’s budget priorities and recent talking points with our Congressional delegation and federal agencies. Public Health and Safety policies highlight funding and grant programs to address law enforcement needs, regulating public spaces, drug addiction and enforcement (especially related to fentanyl), drug treatment programs and safety measures concerning the railroads. Transportation and Infrastructure policies align with the 2024 Legislative Agenda to continue federal partnerships and funding programs, eliminating obstacles to deliver federal transportation projects and encouraging members of Congress to see the extraordinary growth firsthand and how the City is delivering on its past federal awards. This agenda includes the addition of encouraging USDOT to work with states to establish Disadvantaged Business Enterprise (DBE) goals on a regional rather than statewide basis, in concert with our state legislative efforts. Housing and Homelessness policies were added to encourage continued funding of programs and services to respond to and address homelessness, promote construction and preservation of affordable housing, offer federal incentives to deliver diverse housing options for all income levels and support for HUD to adequately fund its Housing Choice Voucher Program to create stability and certainty for Public Housing Authorities. Economic Development and Workforce policies encourage expanding and growing the manufacturing sectors in Spokane Valley and the region and they express opposition to preemption of local authority to regulate utilities. Value of Hydropower aligns with the 2024 Legislative Agenda by expressly supporting policies that protect hydropower and asks that the federal government include a variety of stakeholders, including local government, to participate in federal conversations. SUPPORT FOR LOCAL AND REGIONAL INITIATIVES This item was added to express support of local industries’ federal grant applications such as Kaiser Aluminum’s CHIPS and Science Act submittal to expand their Spokane Valley facilities and boost production of a critical component in the U.S. semiconductor supply chain. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Following discussion, feedback is desired on the proposed capital projects and policy priorities for a future motion and consideration. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Virginia Clough, Legislative Policy Coordinator; and Mike Pieper, Cardinal Infrastructure, LLC. ATTACHMENTS: Draft 2025 Federal Legislative Agenda, PowerPoint Presentation 2025 Federal LegislativeAgenda 10210 E Sprague Avenue · Spokane Valley, WA 99206 Phone: 509-720-5000 · SpokaneValleyWA.gov CAPITALPROJECTS Spokane Valley is committed to delivering nationally and regionally projects that prioritize equity, climate and sustainability and safety for all users. Transportation Projects Sullivan/Trent Interchange Total Cost: $46 Million BarkerRoad/I-90 Interchange Total Cost: $40 Million (Est.) 2025 CDS : $3 Million Argonne Bridge at I-90South Barker Corridor Total Cost: $24 Million (Est.)Total Cost: $41 Million 2025 CDS : $ CDS = Congressionally Directed Spending Cross Country Course Fieldhouse The City of Spokane Valley requests $3.5 million in Economic Development Initiative (EDI) program a drug testing facility, medical room, storage for course maintenance and equipment, restrooms for 2,000 attendees, ’s nest) for This venue -collegiate and master’s level events -barrier sport facility for our community, as only a pair of shoes is necessary. The National Collegiate Athletic Association (NCAA) has selected this course to hostthe 2027 Division guests to the City of Spokane Valley. The City and promote sports tourismarea hotels, restaurants, retail shops and other businesses. DRAFT 10-15-24 POLICY PRIORITIES Public Health and Safety Supportfor and equipment needs including continuation of the COPS Program (Community Oriented Policing Program) and the Bryne JAG (Justice Assistance Grant) program . Encourage the federal government to establish funding assistance to aid in the planning and construction of . Uphold local governments the ability to regulate its public spaces, including, but not limited to, open use of controlled substances, overnight camping, etc. Support for federal programs and funding to increase drug enforcement and treatment programs passing abuse such as: o Reauthorization of the SUPPORT Act o Passage of the HALT Fentanyl Act transport of hazardous materials via train through passage of the Rail Safety Act. Enact measures requiring railroads to maintain their properties to deter trespassers, encampments, and associated negative impacts upon adjacent businesses and neighborhoods and requiring prompt clean up after public health and safety incidents. Transportation and Infrastructure Encourage Congress to continue federal participation in locally directed projects, given the . C Department of Transportation to ensure that E E agencies must bear the cost of travel for contracted services from larger metropolitan areas. The City encourages members of Congress to visit our region to see Housing and Homelessness Continue programs and policies to respond to and address homelessness such as Continuum of Care Program, Homeless Assistance Grants, etc. Promote construction and through -Income Housing Program, HOME Investment Partnership Program, etc. Support for federal incentives to increase and diversify housing options for an array of income - Support for HUD to adequately fund its Housing Choice Voucher Program to create stability and certainty for Public Housing Authorities to continue assisting families and individuals in should run short. DRAFT 10-15-24 POLICY PRIORITIES CONTINUED Economic Development and Workforce Support policies and the manufacturing sectors in the City of Spokane Valley and across the region. Oppose the to regulate utilities. Value of Hydropower , Ensure public utilities, ports, local government and river users. SUPPORT FOR LOCAL AND REGIONAL INITIATIVES Support of local industries’ federal grant applications such as Kaiser Aluminum’s CHIPS and Science Act submittal highly-engineered aluminum plate, a critical component in the U.S. semiconductor supply chain. DRAFT 10-15-24 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date:October 15, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Spokane Regional Emergency Communications (SREC) Update GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Informational presentation on November 1, 2022, from SREC representatives; update on June 4, 2024 to discuss recent letters between SREC and the City of Spokane regarding Spokane’s participation with SREC; update on July 23, 2024 to discuss. BACKGROUND: The Spokane Regional Emergency Communications (SREC) is a public development authority formed by Spokane County in 2018 to serve as the regional emergency service communications agency. SREC provides a variety of services, with a primary focus on providing 911 and Crime Check call response and dispatch to almost all agencies within Spokane County for emergency services, including fire, police, and medical services. The primary SREC communications center is housed at a facility near the Spokane Community College which is owned by the City of Spokane. SREC is funded through a variety of funding sources. The three primary sources include a voter- approved communication sales tax levy of 0.1%, most recently approved in 2017, a 911 excise tax ($0.70 per month for each landline phone number, wireless phone number, and VoIP service line), and “user fees” from partner agencies. The City is not a direct member of SREC and so does not have a service agreement with SREC. The City pays for services through its Law Enforcement Agreement costs through the Spokane County Sheriff’s Office. As part of this arrangement, Spokane Valley Police Department Police Chief Dave Ellis serves on the SREC Board, but the City does not have direct City staff or elected official representation on the Board. Staff attend meetings and work with SREC Staff for questions related to operations and financings. In 2023, SREC charged the Spokane County Sheriff’s Office $3,208,390. The City’s share through the LECAP (methodology for calculating amounts owed) for 2023 was $1,321,089 (paid through its Law Enforcement Agreement). Member agencies include Airway Heights Police/Fire, Cheney Fire, EWU Police, Kalispel Tribe Public Safety, Liberty Lake Police, Spokane County Sheriff’s Office, Spokane County Fire Districts 2, 3, 4, 5, 8, 9, 10, 11, 12, and 13, Spokane Valley Fire, and Spokane Valley Police Department. Notably, the City of Spokane only participates with Spokane Fire. SREC was originally contemplated as a fully regional agency with participation from all first responder agencies, including Spokane Fire and Spokane Police. For various reasons, the City of Spokane did not join SREC when it was created. On November 1, 2022, the Spokane Fire Department joined SREC. Currently, SREC provides 911 response, but not dispatch services to Spokane Police. Recent Developments In June 2024, Chief Ellis provided an update on communications between SREC and the City of Spokane about Spokane’s participation in SREC. While SREC was envisioned as a fully regional agency providing emergency communications services for all law enforcement and fire agencies, the City of Spokane did not immediately join. In 2022, Spokane Fire agreed to a service agreement and joined SREC. As part of this agreement, the City of Spokane filled two seats on the SREC Board with the Spokane Fire Chief and City of Spokane City Administrator. However, at that time Spokane Police have not joined SREC. SREC continues to provide 911 services (answering 911 calls) and forwards any calls for police service needs in the City of Spokane to Spokane Police Dispatch. Spokane has at various times sought to receive a portion of the taxes received by SREC to assist in funding Spokane Police Dispatch. In order to fully resolve the issue, in April 2024, the SREC Board voted to request from the City of Spokane confirmation of whether Spokane would fully join SREC and if not, to then fully separate from SREC and to form and operate its own public safety answering point (PSAP) to provide all emergency communication services for Spokane. The City responded, requesting (1) additional time to review the financial implications of Spokane providing its own PSAP, (2) identifying claims that SREC was overcharging members in the user fees, and (3) requesting greater representation on the SREC Board due to the fact that if Spokane Police calls were added, total call volume for Spokane Fire and Police would constitute more than half of the calls received by SREC. On May 24, 2024, the SREC Board voted to agree to the Mayor’s request for an extension to August 24, 2024. Tonight, Staff will provide an update on the City of Spokane’s August response and subsequent communications between SREC and Spokane. In August, the City of Spokane identified that it had ADCOMM provide a report and assessment of the feasibility of Spokane creating its own PSAP vs. fully joining SREC. Based on that report, Spokane identified it did intend to join SREC, but only if the governance board included more representation from Spokane, the user fees were be eliminated, reduced or modified, and that there were more communications and planning involving all stakeholders. SREC responded that it understood the City to be fully incorporating into SREC if the items identified were resolved. SREC agreed to have the City of Spokane Police Chief added to the Governing Board, disagreed with any changes to the financial planning and operational model of SREC, and agreed to negotiate an interlocal for Spokane’s participation with SREC. SREC recommended creation of a transition team to work through the timing and logistics of Spokane Police Dispatch joining SREC once the interlocal was executed. As part of the process, SREC has created a negotiation team consisting of the SREC Executive Team, two Spokane County Commissioners, Sheriff, and SREC Executive Director to meet with representative from Spokane to work through the items identified by each side. The City and SREC have continued to have discussions and are apparently moving towards Spokane fully joining SREC. Notably, City staff have requested a position on the SREC Board by City staff, but have been told that the Board of County Commissioners would not entertain any other changes to the SREC Board. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: The City paid $1,321,089 through its Law Enforcement Agreement for SREC in 2023. STAFF CONTACT: Deputy City Manager Erik Lamb; Dave Ellis, Spokane Valley Police Chief ATTACHMENTS: PowerPoint Presentation ADCOMM Report from City of Spokane Various letters from agencies regarding SREC SREC ANALYSISREPORT Project: City of Spokane SREC Analysis PN0746 PREPARED FOR:DATE SUBMITTED 08/23/2024 City of Spokane 18809 Autumn Way Sandy, OR 97055 Phone: 425-487-1361 adcomm911.com WA Firm License ID No. 20106216 CITY OF SPOKANE | SREC ANALYSIS REPORT TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ............................................................................................................... 1 2. THE CITY’S CURRENT FISCAL COMMITMENT TO SREC911 ...................................................... 7 2.1 Emergency Call Handling and Fire Dispatching ....................................................................... 7 2.2800 MHz Trunked Radio System................................................................................................9 2.3 Radio Equipment Costs Specific to City of Spokane .............................................................. 10 2.4 Crime Check ............................................................................................................................... 10 3. TRANSITION COSTS ................................................................................................................. 11 3.1 Facility Costs ............................................................................................................................... 11 3.2 Technology Costs ....................................................................................................................... 11 3.3 Organization and Operation Change Management Cost Considerations .......................... 13 4. PROS AND CONS OF CONTINUING FIRE SERVICES WITH SREC ............................................ 14 5. PROS AND CONS OF TRANSITIONING POLICE DISPATCH SERVICES TO SREC911 .............. 15 6. FUNDING MODEL OF SREC ...................................................................................................... 16 6.1 Concerns About Revenue Exceeding Expenses ..................................................................... 17 6.2 Concerns Regarding How Member User Fees are Determined ........................................... 19 6.3 Focus on Funding at SREC and the City of Spokane, an Observation ................................. 19 6.3.1 Context and Implications .................................................................................................... 20 7. GOVERNANCE STRUCTURE SREC ............................................................................................ 21 7.1 Composition and Authority ...................................................................................................... 21 7.2 Responsibilities and Functions ................................................................................................ 22 7.3Committees and Subcommittees............................................................................................22 7.4 Meetings and Decision-Making ................................................................................................ 22 7.5Supporting Agreements............................................................................................................23 7.6 City of Spokane's Role in Fiscal and Governance Support of SREC ..................................... 23 8. RECOMMENDATIONS .............................................................................................................. 25 8.1 Enhanced Representation ........................................................................................................ 25 8.2 Weighted Voting System ........................................................................................................... 25 8.3 Financial and Operational Subcommittees ............................................................................ 26 8.1 Regular Review and Adjustment of SLAs ................................................................................ 27 8.2 SREC must operate the 911 system in a more cost-effective manner ................................ 27 8.3 Strategic Planning and Collaboration ..................................................................................... 28 8.4 Recommendation to fully participate in SREC or initiate the process to separate ............ 29 PN0746 ADCOMM ENGINEERING LLC | ii PROJECT NAME| REPORT TITLE APPENDIX B 1. EXECUTIVE SUMMARY The City of Spokane requested ADCOMM perform a Public Safety Communications Analysis to identify the fiscal, organizational, and operational impacts of two potential scenarios: Have both Spokane Police and Spokane Fire be fully participating agencies in Spokane Regional Emergency Communications (SREC) Or Have the City create and operate a dedicated primary public safety answering point (PSAP) and dispatch center for Spokane Police and Fire Departments. Both options were analyzed to provide benefits or roadblocks with respect to altering the services currently provided by SREC to the City’s Police and Fire Departments. This study provides information so that the City can make an informed decision about which scenario best meets the needs of the City. The City’s fiscal commitment to SREC: 1. Emergency Call Handling and Fire Dispatching: Under a Service Level Agreement (SLA) from 2022, the City pays SREC for 911 call handling, fire/EMS dispatching, and radio network support. Payments are made in two equal installments each year, by May 1 and November 1, based on a User Fee Formula recommended by the Fire Service Communication Advisory Board and approved by the SREC Governing Board. The City currently pays SREC monthly. The SREC's funding comes from county taxes and other revenue sources. The cost allocation for member agencies is based on factors like call volume and dispatch workload, but the exact formula is not numerically defined. 2. Cost Allocation for Fire Dispatching: In 2024, the City of Spokane is responsible for 55% of the fire dispatching costs, amounting to $2,415,323 out of a total cost of $4,410,730. This is an increase from the 2023 rate due to adjustments in the calculation model. 3. 800 MHz Trunked Radio System: The City’s share of the 2024 radio system costs is based on its 58.05% usage. This includes salaries, maintenance, and operational costs. However, the operating reserve contribution is not detailed in the agreements. 4. Radio Equipment Costs: For 2024, the City faces costs of approximately $1,470,075 for radio equipment replacements and $103,235 for police dispatch consoles. 5. Crime Check Costs: The City is responsible for 61% of the costs related to Crime Check calls based on its share of the call volume. The estimated cost and cost considerations of transition from SREC to the City: 1. Facility Costs: Transitioning requires modifying the current facility to accommodate up to needs, which vary based on timing and the facility's layout. An architect’s input is essential for precise cost estimates. PN0746 ADCOMM ENGINEERING LLC | B-1 PROJECT NAME| REPORT TITLE APPENDIX B 2. Technology Costs: Deciding between using SREC’s technology or acquiring new systems and maintenance. New systems require negotiations for interoperability with existing technologies. Additionally, the cost of accessing enhanced GIS data from SREC needs to be considered. 3. Organization and Operation Change Costs administrative costs. Actual costs may vary based on how the new services are integrated into existing City departments. Overall, precise cost projections are challenging due to the need for detailed facility planning and technology negotiations. Review of SREC911 Services for Spokane Fire Department: Current Services: Call handling Dispatch Resource coordination countywide Situational awareness through centralized dispatch Pros of Continuing with SREC911: No service disruption No initial capital or transition costs -training Cons of Separating from SREC911: Disruption due to added call handling time Need for policy and CAD adjustments Capital start-up costs for new technology Transition costs and operational interruptions Review of SREC911 Services for Spokane Police Department: Current Services: Initial call handling and transfers PN0746 ADCOMM ENGINEERING LLC | B-2 PROJECT NAME| REPORT TITLE APPENDIX B CAD entry for multi-agency responses Crime Check report-taking Pros of Transitioning to SREC911: Fewer call transfers Better resource coordination and situational awareness Improved coordination with Spokane Fire Cross- Opportunity to enhance City/PD and SREC relationship Cons of Transitioning to SREC911: Need for policy and protocol changes Potential loss of control over dispatch processes Risk of non-compliance with service agreements Possible service decrease if SREC fails to meet SLAs Risk of further straining City/PD and SREC relationship SREC Funding Model: 1. Sales and Use Tax: Approved by Spokane County voters in 2017, a 0.1% sales tax funds stability for infrastructure improvements and regionalization. 2. 9-1-1 Excise Tax: A monthly fee of 95 cents per phone line or device helps fund the maintenance and enhancement of the 9-1- 3. Member Agency Fees: SREC charges its member agencies based on a Service Fee Formula, which considers call volume and service needs. These fees cover operational costs beyond taxes. 4. Intergovernmental Revenue: Includes state grants, like the $50,000 for 2024. 5. Miscellaneous Income and Investment Earnings: Additional funds come from various sources and investments. The City of Spokane, which makes up 42.46% of the county's population, contributes over 60% of exceeding expenses by $33.2 million from 2020 to 2023, with member fees totaling $22.7 million. This surplus has been retained to fund a future new facility, raising concerns about potential violations of Service Level Agreements (SLAs) and whether fees are equitably shared. There are also concerns about the process for determining member user fees, which have relationships between SREC and member agencies, particularly the City of Spokane. The intense PN0746 ADCOMM ENGINEERING LLC | B-3 PROJECT NAME| REPORT TITLE APPENDIX B communication. Overall, the SREC funding model, while sustainable, is facing scrutiny for its management of The Spokane Regional Emergency Communications (SREC) is a Public Development Authority resolution passed in 2018. Governance Structure: Governing Board: Composed of representatives from various public safety and government agencies within Spokane County. Key members include the Chair (Chief Cody s, as well as a citizen representative. : The Board elects a Chair and Vice-Chair for one-year terms. Responsibilities: Chair: Leads meetings and represents the Board but can delegate responsibilities. Executive Director: Manages SREC’s operations, including budget preparation, contract Committees: Financial Subcommittee: Reviews budgets, funding, and capital debt. Operations Subcommittees improve services and address user needs. Meetings and Decision-Making: Meetings: Held at least ten times a year; special and executive sessions can be called as needed. Quorums and Voting majority. Supporting Agreements: Service Level Agreements (SLAs) terms. Budget and Financial Planning: Reviewed biannually; annual budget adopted by November 1st. PN0746 ADCOMM ENGINEERING LLC | B-4 PROJECT NAME| REPORT TITLE APPENDIX B Insurance Review: Conducted annually. City of Spokane's Role: Fiscal Support: The City contributes through member fees and local taxes. Governance Support: The City is represented on the Board and is involved in operational aspects, including dispatch and reporting services. SLAs Overall, SREC’s governance structure includes a diverse Board, structured committees, and support from the City of Spokane. Recommendations: 1. Enhanced Representation: Increase the City of Spokane's representation on the SREC Governing Board to reflect its significant population and service demand, potentially by adding more seats or giving additional voting weight. 2. Weighted Voting System: Implement a weighted voting system to better reflect the needs and usage of the City of Spokane compared to smaller jurisdictions. This system, modeled after King County's approach, would allocate votes based on factors like population size or service volume. 3. Financial and Operational Subcommittees: 1. Finance Subcommittee: Ensure regular meetings and full participation by the City of Spokane to review budgets, funding, and capital debt. 2. Operations Subcommittees: Increase City of Spokane’s involvement in these subcommittees and ensure proper representation, particularly in areas like law enforcement dispatch services. 4. Regular Review and Adjustment of SLAs: Annually review and adjust Service Level Agreements (SLAs) to match the City's needs and service usage, including cost allocation formulas. 5. Cost-Effective Operations and Transparency: 1. Improve financial transparency by providing detailed reports and updates on how SREC utilizes its revenue. 2. Ensure any new facility costs are clearly outlined in SLA amendments and obtain approval from all member agencies. 6. Strategic Planning and Collaboration: Engage in strategic planning with the City of Spokane to address operational, financial, and technological challenges, including exploring a long-term countywide 9-1-1 strategic plan like King County’s model. 7. Consideration of Full Participation or Separation: Evaluate whether to fully participate in SREC or consider maintaining an independent 9-1-1 system if necessary improvements are not agreed upon. Recognize that separation may involve additional challenges and costs. PN0746 ADCOMM ENGINEERING LLC | B-5 PROJECT NAME| REPORT TITLE APPENDIX B PN0746 ADCOMM ENGINEERING LLC | B-6 PROJECT NAME| REPORT TITLE APPENDIX B 2. THE CITY’S CURRENT FISCAL COMMITMENT TO SREC911 2.1 Emergency Call Handling and Fire Dispatching The City of Spokane’s current fiscal commitment to Spokane Regional Emergency Communications (SREC) center is described in the Service Level Agreement (executed in 2022) between the City of Spokane and the Spokane Regional Emergency Communications (SREC). The services are summarized as (1) 911 Emergency Call Taking; (2) Fire/EMS Dispatching; and (3) Radio Network devices and system support. A User Fee for said services is not enumerated, or included as a formula, but described in Section 2 of the SLA as COMPENSATION. TIME OF PAYMENT. 2.1 Compensation. The RECIPIENT shall compensate the PROVIDER for the SERVICES according to the User Fee Formula as recommended by the Fire Service Communication Advisory Board and approved by the SREC Governing Board. 2.2 Time of Payment. RECIPIENT shall pay PROVIDER the total fixed fee set forth in Paragraph 2.1 in no more than two equal installments, the first of which shall be paid to PROVIDER no later than May 1 of each year of the Agreement and the second no later than November 1 1 of each year of the Agreement. The City of Spokane submits payment monthly to SREC. The overall funding of SREC comes from the Board of County Commissioners approved and designated revenues from the County generated by Enhanced 911 sales, use, and excise taxes as th allowed under RCW 82.14B.030 and, the 1/10 of 1% Communication tax as approved by the voters under RCW 82.14.420 as well as other revenue generated from service fees consistent with the charter, 2 and the bylaws and Section No. 2. The funding model and formula for member agencies of SREC is detailed in the following table: 1 Resolution 18-0772 2 Ibid. PN0746 ADCOMM ENGINEERING LLC | B-7 PROJECT NAME| REPORT TITLE APPENDIX B TABLE 1: Cost Allocation Rate Model FY 2024 (SREC) The cost allocation rate model is based on the Service Fee Formula as defined in Resolution 18- 0772 as The allocation of costs of services determined by the SREC Board for the purposes of 3 calculating the fees assessed to entities for the funding of such services.This Resolution, the SREC Board Charter and Bylaws, do not contain a formula in the sense that there is not a mathematical equation nor a rule expressed in numbers. The above model summary for 2024 shows the calculations used to divide the amount of the SREC budget to be covered after the 9-1- 3 Ibid. PN0746 ADCOMM ENGINEERING LLC | B-8 PROJECT NAME| REPORT TITLE APPENDIX B th 1 excise tax and the 1/10 of 1% sales and use tax revenues are applied. The share by entity is based on use of the system, also known as call volume, cost to dispatch, and other workload descriptors. The City of Spokane is invoiced for the Spokane Fire Department use of the system as 55% of the Fire call handling and dispatch workload. Per SREC, the 2023 rate was not increased from the 2022 rate. The rate model was applied when calculating the 2024 rates and described as being based on Spokane Fire determined to represent 55% of the dispatch service usage. As determined by SREC, the cost to dispatch fire countywide is $4,410,730. The City’s percentage of use and responsibility at 55% resulted in an invoice of $2,415,323. Note that 55% of $4,410,730 is $2,425,901, a difference of $10,578. The reason provided by SREC for the increase from 2023 to 2024 was a low calculation for 2023 and a catch up to the rate model for 2024. There are no protections in the City’s agreement with SREC from substantial rate changes or language addressing how the City can address/challenge these rate changes. 2.2 800 MHz Trunked Radio System The SREC 2024 Projected cost of service estimate for the City of Spokane for the regional radio system is based on measured use by the City’s agencies. Per SREC, the statistics generated from the radio system indicate that the City of Spokane usage percentage is 58.05% of the overall airtime utilized by all agencies. The line items are SREC radio shop salary and benefits, maintenance and operation, administrative and technology services, and an operating reserve contribution. Note that the operating reserve contribution is not defined nor called out in the service level agreement nor the intergovernmental agreement between the City and SREC. The following table is a breakdown of the costs of operating the radio system and the associated amounts representing the City’s responsibility. TABLE 2: City of Spokane 800 MHz Trunked Radio System Usage Percentage and Cost 800 MHz TRUNKED TOTAL SYSTEM OTHER SYSTEM RADIO SYSTEM USAGE OPERATING COST COS % COS $ USERS Direct Salary & Benefits $1,437,420 58.05% $834,422 $602,998 Direct M&O* $3,364,198 58.05% $1,952,917 $1,411,281 Admin/IT Services $2,336,112 58.05% $1,356,113 $979,999 Amount Operating Reserve $269,439 58.05% $156,409 $113,029 Contribution** $7,407,168 $4,299,861 $3,107,307 *Equipment replacement costs are calculated separately based on recent cost divided by useful life. PN0746 ADCOMM ENGINEERING LLC | B-9 PROJECT NAME| REPORT TITLE APPENDIX B **Operating Reserve contributions are calculated based on Board approved amount and apportionment of departmental expenses. 2.3 Radio Equipment Costs Specific to City of Spokane In addition to the overall system usage and operating costs, SREC manages the equipment, i.e., consoles, portables, mobiles. The 2024 budgeted amount for radio equipment replacement is based on the number of radios in use and cache for the City, which is 1,153 with an annual replacement cost of $1,275 per unit for a total of approximately $1,470,075. The City has 11 police dispatch radio consoles that have an annual replacement cost of $9,385 per unit for a total of approximately $103,235. 2.4 Crime Check SREC uses data provided from the computer aided dispatch (CAD) system to determine that the City of Spokane accounts for 61% of all the Crime Check calls received. The following table is a breakdown of the costs to perform Crime Check and the amounts representing the City’s responsibility. TABLE 3: Crime Check Services TOTAL CRIME CHECK OTHER SYSTEM OPERATING COST USERS CRIME CHECK SERVICES COS % COS $ Direct Salary & Benefits $3,389,875 61.00% $2,067,824 $1,322,051 Direct M&O -- 61.00% -- -- Admin/IT Services $1,649,263 61.00% $1,006,050 $643,212 Amount Operating Reserve $190,220 61.00% $116,034 $74,186 Contribution* $5,229,358 $3,189,908 $2,039,450 *Operating Reserve contributions are calculated based on Board approved amount and apportionment of departmental expenses. PN0746 ADCOMM ENGINEERING LLC | B-10 PROJECT NAME| REPORT TITLE APPENDIX B 3. TRANSITION COSTS The cost of transitioning call handling, dispatch, and report writing services from SREC to the City of Spokane cannot be completely projected as there are decisions that must be made regarding the following: Modifications needed to the repurpose the current facility to best accommodate a new City operation. Associated costs are impacted by the timing of a transition of Spokane Fire services from SREC to the City, and by SREC’s timeline for relocating operations. 3.1 Facility Costs The following table estimates potential renovation and upgrade costs that may be associated with repurposing the current facility to house an expanded City of Spokane Police and Fire operation. This is based on an approximation of renovating a 3,000 square foot (SF) area of the building to accommodate up to 15 call handling/police/fire consoles and associated administra- tive and support services. These figures should only be used for discussion purposes as facility programming by an architect or facility planner is necessary to determine actual space needs once decisions are made about what will be housed in this facility. The figures are based on the non-residential range of construction costs for secure purpose-built critical facilities. TABLE 4: Renovation Cost Estimates COSTS/SF APPROX. COSTS Renovation/Expansion $96 $288,000 Interiors $125 $375,000 Mechanical* $90 $90,000 Electrical* $60 $60,000 Subtotal $813,000 Contingency 20% $162,600 Total $975,600 Soft Costs (if needed) A/E Fees 10% $97,560 Total $1,073,160 *Improvements if needed. 3.2 Technology Costs Technology replacement and interoperability costs vs. costs to continue to use SREC technology. This decision should be made system by system. Service to citizens and responders is best preserved through continued shared technologies. The continued use of SREC maintained systems will require negotiating costs for initiation and for ongoing use and maintenance of system components, connectivity, equipment and data. Should the City desire to acquire new PN0746 ADCOMM ENGINEERING LLC | B-11 PROJECT NAME| REPORT TITLE APPENDIX B systems, voice and data interoperability must be negotiated and memorialized in a system access and data-sharing agreement(s). The costs associated with voice and data interoperability are not quantifiable without finalizing what the level of use and access will be to the radio, telephony, and logging recorder systems. The City also maintains and shares City-specific Geographical Information System (GIS) data countywide, and SREC uses this data to provide enhancements to mapping tools to all member agencies. There may or may not be a cost associated with access and use of this enhanced data, such as recent fire evacuation data. If the City chooses to transition out of SREC, then planning must include an assessment of what GIS data is available at no cost and what costs may be associated with replicating the enhancements SREC has produced. The following table contains estimated costs associated with new systems and connectivity. These are a sampling of potential costs and the items noted as existing must be considered if impacted by a separation from SREC. Items requiring negotiations with SREC for access and use are specified as the radio system components, though all technologies and systems access and use can be negotiated. TABLE 5: Technology Cost Estimates INDIVIDUAL TOTAL ESTIMATED COST ESTIMATED COST MAINTENANCE SYSTEM QUANTITY Software Licensing 1 $250,000 $250,000 $45,000 CAD Servers/Storage 2 $50,000 $100,000 $18,000 Personal Computers 24 $2,250 $54,000 $10,000 Computer Monitors 30 $500 $15,000 $5,760 Remote PC Installation 1 $75,488 $75,488 $0 Mobile Data Existing $0 $0 $0 LERMS Existing $0 $0 $0 FRMS Existing $0 $0 $0 ePCR Existing $0 $0 $0 9-1-1 Answering Existing $0 $0 $0 Equipment Telephony 1 $80,000 $80,000 $14,400 Fiber Connection (PSDN) 1 $50,000 $50,000 $0 Radio Dispatch Consoles 15 $100,000 $1,500,000 $144,000 Radio System To be negotiated $0 $0 $0 Radio System To be negotiated $0 $0 $0 Connectivity PN0746 ADCOMM ENGINEERING LLC | B-12 PROJECT NAME| REPORT TITLE APPENDIX B INDIVIDUAL TOTAL ESTIMATED SYSTEM QUANTITY COST ESTIMATED COST MAINTENANCE Logging Recorder1 $115,000$115,000$20,700 Dispatch Protocol 1 $93,609 $93,609 $16,850 Software Fire Station Alerting Existing $0 $0 $0 System Furniture 15 $19,000 $285,000 $5,000 Dispatch Chairs (24x7) 15 $1,500 $22,500 $3,000 Electrical/Cabling Existing $0 $0 $0 UPS Existing $0 $0 $0 Generator Existing $0 $0 $0 Master Clock 1 $30,000 $30,000 $0 Security/Access Control Existing $0 $0 $0 Flat Panel Wall Displays 4 $1,500 $6,000 $2,000 Cable TV 1 $500 $500 $500 Audio Video Switching 1 $50,000 $50,000 $9,000 Total $2,727,097 $294,210 3.3 Organization and Operation Change Management Cost Considerations Costs associated with organization and operation changes may be manageable in support of the Spokane Police but will be significant for the Spokane Fire, call handling, and report writing (Crime Check). The transition to a newly created City department or the addition of the services under an existing department will require significant planning, application of existing and new personnel, administrative support transition, operations staff recruitment, hiring, training, and supervision. A cost consideration that cannot be accurately quantified is the time investment necessary to address the response coordination between Spokane Fire and other fire districts that will continue to be dispatched by SREC. Costs that the City should expect include salary and benefits for approximately 20 additional staff to handle the fire dispatching and associated call handling. From the SREC operations budget, the City can expect this cost to be around $8,600,000 or more based on the requirements of the current collective bargaining agreement for dispatch staff. The employee pay table in the current agreement shows position pay ranges from Report Technicians annual pay of $44,579.05 through Supervisor 3 Three Disciplines annual pay of $87,803.26. The estimated $8.6mil figure is inclusive of administrative staff, and support staff and programs for training and quality assurance. Actual costs may be higher or lower depending on decisions PN0746 ADCOMM ENGINEERING LLC | B-13 PROJECT NAME| REPORT TITLE APPENDIX B regarding City support for a new department or incorporating these functions within an existing department(s). 4. PROS AND CONS OF CONTINUING FIRE SERVICES WITH SREC Current fire services from SREC include call handling, dispatch, coordination of resources for response countywide, situational awareness via centralized dispatch, new CAD planned with continued and enhanced integration to/with fire records management. Pros for continuing service with SREC: a. No disruption to current service b. Continued coordinated response with other fire and law services c. No capital start-up costs d. No transition costs and operations interruption e. Continued efforts to cross-train all SREC staff to address staffing, back fill, and surge staffing needs Cons to separating service from SREC: a. Disruption of current service by adding call handling time via transfers b. Reframing policy and CAD responses to allow coordinated response with other fire and law services c. Capital start-up costs for purchasing or adapting technologies d. Costs and operations interruption for transitioning space, organization, operations, and technology e. Creation within new organization of hiring, training, and retaining staff, and cross-training potentially within fire and police dispatch staff. PN0746 ADCOMM ENGINEERING LLC | B-14 PROJECT NAME| REPORT TITLE APPENDIX B 5. PROS AND CONS OF TRANSITIONING POLICE DISPATCH SERVICES TO SREC911 Current services include initial call handling to determine response. If only Spokane PD, then transfer. If multi-agency/discipline response, then enter in CAD for PD while continuing to process complete call, then may transfer. Crime Check report-taking which is a countywide service and is assumed to remain at SREC. Pros of transitioning dispatch services to SREC: a. Reduction in transfer of emergency calls b. Enhanced coordination of resources within SREC and in the field c. Enhanced situational awareness within SREC and in the field d. Enhanced coordination between Spokane Police and Fire e. Cross-trained staff for staffing, back fill, and surge staffing needs f. Overall cost efficiencies through negotiated user fees vs capital and ongoing costs associated with creating and maintaining a City PSAP g. Opportunity to improve relationship between City/PD and SREC Cons of transitioning dispatch services to SREC: a. Required policy, procedure, and protocol change/creation and coordination via agreement(s) between City and SREC b. Process changes and potential indirect control of call handling and dispatch processes c. Either side of City and/or SREC not adhering to negotiated service agreement(s) and governance arrangements d. Potential decrease in service if SREC does not or is not able to meet SLA due to staffing, funding, or other unknown issue e. Further straining relationship between City/PD and SREC PN0746 ADCOMM ENGINEERING LLC | B-15 PROJECT NAME| REPORT TITLE APPENDIX B 6. FUNDING MODEL OF SREC The funding mechanism supporting Spokane Regional Emergency Communications (SREC) involves the following revenue sources. 1. Sales and Use Tax: A significant portion of SREC's funding comes from a local sales and use tax. In 2017, Spokane County voters approved Proposition 1, continuing a 1/10th of 1% sales tax to fund emergency communication systems and services. This tax provides financial sustainability through 2028 for improvements and maintenance of the emergency communications infrastructure, including regionalization efforts. 2. 9-1-1 Excise Tax: Spokane County residents pay a monthly fee of 95 cents on their cell phone, landline, or pre-paid mobile phone bill. This excise tax funds both current and future enhancements and maintenance of the 9-1-1 phone system, as well as staffing for managing initial emergency communications. 3. Member Agency Fees: SREC charges its member agencies for the services they provide. These charges contribute to staffing and support services, ensuring operational funding beyond the sales and excise taxes. The allocation of member agency fees to each agency within SREC is guided by a cost allocation formula, known as the Service Fee Formula or Cost Allocation Matrix, which is determined by the SREC Governing Board. The SREC Governing Board designs this formula to equitably distribute the costs of services among the member agencies, considering their specific usage and requirements. a. Key Points on Member Agency Fee Allocations: i. Service Fee Formula: The Service Fee Formula considers various factors, including the volume of calls handled, the specific services provided to each agency, and any additional resources or support required by the agencies. This ensures that the costs are proportionally shared among the agencies based on their actual use of SREC services. ii. Annual Budget Review and Recommendations: The SREC Financial Subcommittee reviews the previous year's revenues and expenses to make certain the cost allocation meets the established principles and concepts. This review occurs twice a year: once in the first quarter to assess the previous year and again in the third quarter to prepare the budget for the following year. iii. Service Level Agreements (SLAs): Each member agency has a Service Level Agreement (SLA) with SREC, which outlines the scope of services provided, the financing terms based on the cost allocation formula, and provisions for termination, insurance, and indemnification. These SLAs are PN0746 ADCOMM ENGINEERING LLC | B-16 PROJECT NAME| REPORT TITLE APPENDIX B integral to defining the financial obligations and service expectations for each agency. iv. Transparency and Accountability: SREC emphasizes financial responsibility and transparency. Regular audits and financial reviews ensure that funds are managed effectively, maintaining trust and accountability among member agencies and stakeholders. In summary, the cost allocation formula within SREC allocates the member agency fees, considering the unique needs and usage of each agency. This approach is intended to ensure an equitable distribution of costs, supporting the sustainability and efficiency of emergency communication services across the region. 4. Intergovernmental Revenue: The 2024 budget includes additional intergovernmental funding from a state grant of ($50,000). 5. Miscellaneous Income and Investment Earnings: SREC also earns income from miscellaneous sources and investment income. The City of Spokane represents 42.46% of the population of Spokane County per the 2020 U.S. Census, however, the City of Spokane’s residents and visitors consistently contribute over 60% of all Sales tax. Data from the Washington Department of Revenue shows the City Sales tax contributions for 2021 as 65.90%, 2022 as 64.25%, 2023 as 64.22%, and first quarter of 2024 as 66.26%. In summary, SREC is primarily funded through a combination of sales and excise taxes, and member agency fees. A lesser amount of funding is derived from intergovernmental revenue and miscellaneous income. SREC also benefits from strategic use of reserve balances. These diverse revenue streams confirm the sustainability and enhancement of emergency communication services in Spokane County. 6.1 Concerns About Revenue Exceeding Expenses SREC has consistently received revenue in excess of expenses since 2020, even after accounting for capital improvement and replacement costs. While revenue exceeding expenses is not normally a cause for concern, especially within the private sector. The amount of the surplus is significant. As a governmental organization, these surplus raises concern. From 2020 through 2023 SREC revenue exceeded expenses by $33,182,210 (SREC Annual Reports from 2020, 2021, 2022, 2023). The Member Agency Fees charged during this period total $22,701,424 (SREC Annual Reports from 2020, 2021, 2022, 2023). PN0746 ADCOMM ENGINEERING LLC | B-17 PROJECT NAME| REPORT TITLE APPENDIX B During the four-year period noted, SREC could have returned 100% of member agency fees and would have maintained an overage of $10,480,786. SREC Revenue vs. Expenses 2020-2023 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- 2020202120222023 Revenue Expenses FIGURE 1: SREC Revenue vs. Expenses During interviews with the SREC Executive Director, we learned that the SREC Governing Board decided to retain the revenue surplus each year to fund a future new facility. However, each of the annual reports evaluated (2020, 2021, 2022, 2023) had a revenue category for Capital Outlay. SREC budgeted for capital improvements however, these overages were also intended for capital improvements, specifically a new facility. This funding mechanism for a new facility was not negotiated between the two organizations (SREC and the City of Spokane) and might violate the existing Service Level Agreement (SLA) between SREC and the City of Spokane. The existing SLA does not have a specific provision that allows SREC to bill the City of Spokane for costs associated with building a new facility. In addition, since user fees are based on the current percentage of use of SREC’s operations, the City of Spokane may be unintentionally funding a new facility at a rate that exceeds its percentage of future use. This type of funding should be clearly defined and negotiated between the organizations. If there is an intention to use member fees to fund a new facility, it is essential that such a decision is transparently communicated and formally agreed upon by all member agencies, including the City of Spokane. At the very least, this type of surplus retention does not foster trust between the two organizations and suggests that the City of Spokane’s financial constraints and concerns are not being adequately addressed. There is an appearance that SREC is operating with a private sector mindset of making money. Acquiring a $30M surplus without clear understanding of the intention of that surplus by its PN0746 ADCOMM ENGINEERING LLC | B-18 PROJECT NAME| REPORT TITLE APPENDIX B member agencies may not be in-line with the mindset a government agency should have when it is responsible for the financial stewardship of public funds. 6.2 Concerns Regarding How Member User Fees are Determined Currently, SRECdetermines its expenses for the year and determines the amount that will not be covered by tax revenue. The amount not covered by tax revenue is made up of user fees. This approach has some limitations as the need projected routinely is more than the actual need, contributing to the overages as described. Additionally, the process does not provide member agencies with price stability nor predict- ability. Over the four-year review period, from 2020-2023, member user fees increased 64%. This increase outpaced the rate of inflation over the same period which was 21.39% per the US Department of Labor. Member User Fee's $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2020202120222023 FIGURE 2: SREC Member User Fees 6.3 Focus on Funding at SREC and the City of Spokane, an Observation During observations at the City of Spokane and SREC, it was noted there is a significant and pervasive focus on financial matters at all levels of each of the organizations. This concern is particularly evident in how staff are preoccupied with either SREC receiving its fair share of funding from its member agencies and/or the member agencies concerned that they are being overcharged for services. This intense focus on financial aspects appears overly emphasized, especially at the operational level, potentially detracting from the core mission of providing efficient and effective emergency communications. PN0746 ADCOMM ENGINEERING LLC | B-19 PROJECT NAME| REPORT TITLE APPENDIX B 6.3.1 Context and Implications 1. Operational Impact: The preoccupation with funding and cost allocation may lead to an environment where financial considerations overshadow operational efficiency and service quality. Staff members at various levels may feel pressured to justify expenditure and ensure adequate funding, which could divert attention from their primary responsibilities. 2. Interagency Relations: This focus on funding has strained the relationship between SREC and the City of Spokane. Member agencies and SREC might perceive financial negotiations as contentious rather than collaborative, potentially impacting the overall effectiveness of the regional emergency communication system. 3. Employee Morale and Culture: An environment that is heavily focused on financial matters can have an impact on employee morale. Employees may perceive a greater emphasis on financial metrics in evaluating their performance, rather than their contributions to public safety and service quality. This could undermine the supportive and cohesive culture that SREC aims to build. Employee morale at both SREC and the Spokane Police Dispatch operations are negatively impacted by the current discourse between the two organizations. For instance, while SREC operations staff shared physical space with the Spokane Police Dispatchers, a physical wall was built to separate the employees of the two organizations. Politics, relationships, and finances are noted reasons for the building of the wall. The current environment is fractured and in need of repair. Ensuring that funding mechanisms are fair and equitable is important in maintaining a strong and healthy organization. However, in this case, concerns about funding have penetrated so deeply that even front-line employees appear preoccupied. PN0746 ADCOMM ENGINEERING LLC | B-20 PROJECT NAME| REPORT TITLE APPENDIX B 7. GOVERNANCE STRUCTURE SREC 7.1 Composition and Authority 1. Establishment and Legal Basis: SREC, a Public Development Authority, was established by Spokane County, Washington, under RCW 35.21.730 through 35.21.757 and Resolution/Ordinance No. 2018-0245. 2. Governing Board Composition: The Board consists of individuals established in Article VII of the Charter. Members serve without compensation and must be duly appointed and acting in their official capacities. The Board of Directors for Spokane Regional Emergency Communications (SREC) is composed of various representatives from different public safety and government agencies within Spokane County. The specific composition includes: a. Chair: Chief Cody Rohrbach, Spokane County Fire District 3, representing the EMS & Trauma b. Vice Chair: Chief Brad Richmond, Airway Heights Police Department, representing NW Leadership Small Cities/Towns. c. Members: o Sheriff John Nowels, Spokane County Sheriff’s Office. o Chief Frank Soto, Jr., Spokane Valley Fire Department. o Assistant Chief Tom Williams, City of Spokane Fire Department. o Scott Simmons, CEO Spokane County. o Chief Dave Ellis, Spokane Valley Police Department. o Assistant Chief Howard Johnson, Spokane County Fire District 4. o Maggie Yates, Deputy City Administrator, City of Spokane. o Gayne Sears, Citizen Representative. 3. Officers and Elections: The Board elects a Chair and Vice-Chair from among its members. The term of office for both is one year. Officers can be removed by a 5/7ths vote of the Board. PN0746 ADCOMM ENGINEERING LLC | B-21 PROJECT NAME| REPORT TITLE APPENDIX B 7.2 Responsibilities and Functions 1.Duties of the Chair: The Chair presides over all Board meetings, acts as the spokesperson, and represents the Board in various capacities. The Chair may delegate these duties to other Board members, as necessary. 2. Executive Director: The Executive Director administers SREC’s programs and policies as adopted by the Board. This includes preparing budgets and strategic plans, negotiating contracts, hiring and managing staff, and ensuring the effectiveness of operational subcommittees. 7.3 Committees and Subcommittees 1. Financial Subcommittee: Reviews and provides recommendations on operating budgets, funding, cost share distributions, and long-term capital debt. The Subcommittee includes members from the Executive Committee, the Finance Director of Spokane County, SREC’s Finance Manager, and the Executive Director. 2. Operations Subcommittees: Three Operations Subcommittees (Law, Fire Service, and Technical Operations) provide subject matter expertise, clarify user expectations, and formulate continual improvements based on strategic planning initiatives. 7.4Meetings and Decision-Making 1. Meetings: The Board meets at least ten times a year. Special meetings can be called by the Chair or a 5/7ths majority of the Board. Executive sessions and closed meetings can be convened as needed. 2. Quorums and Voting: A quorum consists of five members. All votes require a 5/7ths majority to pass. The Board aims to reach consensus but will vote if necessary. 3. Parliamentary Procedure: Board meetings follow Roberts Rules of Parliamentary Procedure unless otherwise specified by the Bylaws or state laws. PN0746 ADCOMM ENGINEERING LLC | B-22 PROJECT NAME| REPORT TITLE APPENDIX B 7.5 Supporting Agreements 1.Service Level Agreements (SLAs): SLAs define the scope of SREC’s services, financing terms, termination provisions, insurance, and indemnification. These agreements are necessary for the provision of consolidated 9-1-1 communications and regional radio system services to member agencies. 2. Budgeting and Financial Planning: The Financial Subcommittee meets biannually to review the previous year’s finances and prepare the budget for the following year. The Board adopts the final budget annually by November 1st of each year. 3. Insurance Review: The Board annually reviews SREC's liability and other insurance coverage to ensure adequacy and compliance with relevant laws. 4. Amendments and Dissolution: Bylaws can be revised or amended by a majority vote of the Board. The provisions for dissolution are established in the founding resolution and subsequent amendments. 7.6 City of Spokane's Role in Fiscal and Governance Support of SREC 1. Fiscal Support a. Member Agency Fees: The City of Spokane contributes to the funding of SREC through member agency fees, which are a significant part of SREC’s revenue. These fees are used to support staffing, operational support, and other essential services provided by SREC. b. Revenue from Sales and Excise Taxes: SREC is also funded by 1/10th of 1% local sales tax and a 9-1-1 excise tax. These taxes help fund the public safety communication system and other related services. The City of Spokane, as part of Spokane County, contributes to this revenue through its residents and businesses. The City of Spokane represents 42.46% of the population of Spokane County per the 2020 U.S. Census. 2. Governance Support PN0746 ADCOMM ENGINEERING LLC | B-23 PROJECT NAME| REPORT TITLE APPENDIX B a. Board Representation: The City of Spokane is represented on the SREC Board by the Deputy City Administrator and the Assistant Chief of the Spokane Fire Department. Should the City decide to re-engage the Spokane Police to SREC membership, the SREC Charter and Bylaws will require Board action to modify representation. This re-entry to the SREC Board by Spokane Police will require a new Service Level Agreement and modification to the SREC Charter and Bylaws as detailed in the Recommendations outlined in slides 24-30. The Board of Directors is composed of various representatives from member agencies, ensuring that the City of Spokane has a voice in the governance and strategic direction of SREC. b. Operational Integration: The City of Spokane’s integration into SREC’s operations, particularly through the Crime Check reporting system and the 9-1-1 call receiving and dispatching services, reflects its active role in supporting regional emergency communications. 3. Service Level Agreements (SLAs): The City of Spokane has specific SLAs with SREC. For example, SREC provides all call receiving and dispatching for the City of Spokane Fire Department and handles all Crime Check reporting for the Spokane Police Department. These agreements define the scope of services and the financial contributions from the City. PN0746 ADCOMM ENGINEERING LLC | B-24 PROJECT NAME| REPORT TITLE APPENDIX B 8. RECOMMENDATIONS 8.1 Enhanced Representation The City of Spokane represents 42.46% of the population of Spokane County per the 2020 U.S. Census. Given the City of Spokane’s significant population and service demand, it would be beneficial to enhance its representation on the SREC Governing Board. This could involve increasing the number of seats allocated to the city or providing additional voting weight to its representatives. 8.2 Weighted Voting System Implementing a weighted voting system on the SREC Governing Board could ensure that decisions more accurately reflect the proportional use and needs of the City of Spokane compared to smaller jurisdictions. This system could allocate votes based on population size or the volume of services used. Example of weighted voting systems: The King County Washington 10-year strategic plan includes weighted voting to ensure stakeholders of the 9-1-1 system are fairly represented. A weighted voting system such as the one developed by King County may be beneficial for decision making for the Spokane 9-1-1 system. In King County, the stakeholders involved in decision making are mainly Public Safety Answering Points (PSAP’s) operated or governed by local municipalities or governmental agencies. Each municipal agency is unique in how they operate and the populations they serve. For instance, the City of Seattle operates two PSAP’s within the county in a heavily populated urban area. Conversely, the City of Enumclaw operates a PSAP serving a mostly rural area with needs that are different than a highly populated urban center. Additionally, there are several non-traditional PSAP’s such as the Port of Seattle and the University of Washington. These agencies each have unique needs and prior to the 2017 strategic plan struggled with a decision-making process where each agency felt their needs were heard. Through a collaborative process, the municipalities of King County developed a decision-making process which balanced the needs of larger communities with heavy use of the 9-1-1 system with smaller and non-traditional users of the 9-1-1 system. PN0746 ADCOMM ENGINEERING LLC | B-25 PROJECT NAME| REPORT TITLE APPENDIX B King County implemented a weighted voting system as part of their governance structure. The governing board operates with one voting position for each PSAP and operates by consensus as much as possible. If voting is required, a two-part test must be met. For a vote to pass, it must be approved by (1) 40% of the PSAP’s present and voting and (2) PSAP’s representing 60% of the call volume of the King County regional 9-1-1 system. The plan also lays out a specific process for decisions and appeals as a conflict resolution process. The rules and structure of the weighted voting system provide clarity in how decisions are made and the process for a vote to be moved forward and passed. Additionally, providing a roadmap for decision making fostered additional collaboration amongst the participating municipalities. Municipal players worked together to obtain consensus prior to voting in many instances and the relationships between stakeholders improved. 8.3 Financial and Operational Subcommittees The Finance Committee membership is the Finance Director of Spokane County, Finance Director of the City of Spokane, the SREC Finance Manager, the SREC Executive Director, and a Representative from the SREC Executive Committee. The SREC Executive Committee is comprised of the Chair of the SREC Board, the Vice- Chair of the SREC Board, and the Past Chair of the SREC Board. The Financial Subcommittee reviews and provides recommendations on operating budgets, funding, cost share distributions, and long-term capital debt. It is recommended that the Finance Subcommittee consistently meet and reschedule any canceled meetings. It is also recommended that the City of Spokane continue to participate fully in this subcommittee. Three Operations Subcommittees (Law, Fire Service, and Technical Operations) provide subject matter expertise, clarify user expectations, and formulate continual improvements based on strategic planning initiatives. During ADCOMM’s interviews with stakeholders in the City of Spokane, many of the stakeholders were unaware these subcommittees existed. The Operations Subc Operations Designees, all Fire Chiefs or Operations Designees. These meetings are also attended by the SREC Executive Director or Designee. These Committees operate by consensus with each attendee having a vote in resolving issues brought to the subcommittee. PN0746 ADCOMM ENGINEERING LLC | B-26 PROJECT NAME| REPORT TITLE APPENDIX B It is recommended that the City of Spokane participate fully in these subcommittees. Attendees from the City should be hand-selected to represent the operational interests within the Spokane Fire Department beyond the SREC Board representative of the Fire Chief’s designee. 8.1Regular Review and Adjustment of SLAs Annually reviewing and adjusting the Service Level Agreements to ensure they reflect the current and projected needs of the City of Spokane can help maintain a fair and effective partnership. This includes updating cost allocation formulas to match service usage. 8.2 SREC must operate the 911 system in a more cost- effective manner The strategy of how SREC utilizes its revenue should be more transparent among its communities and member agencies. Enhancing financial transparency through detailed reports and regular updates can help the City of Spokane better understand and manage its contributions and the benefits received from SREC. Formal Amendment to SLA: Any decision to allocate member fees for a new facility should be formally incorporated into the SLA through an amendment. This amendment should clearly outline the purpose, scope, and financial implications of such an allocation. Member Agency Approval: Seek explicit approval from all member agencies, ensuring that they agree to the use of their fees for this purpose. This can involve a vote or a formal agreement to ensure consensus. Transparent Communication: Maintain transparent communication with all member agencies regarding the need for a new facility, the benefits it will bring, and the specific financial contributions expected from each agency. Equitable Cost Distribution: PN0746 ADCOMM ENGINEERING LLC | B-27 PROJECT NAME| REPORT TITLE APPENDIX B Ensure that the cost distribution for the new facility is equitable and reflects the usage and benefits each member agency will receive. This might involve a proportional fee structure based on agency size or service usage. Transparent Fee Calculation Methodology: SREC and the City of Spokane should clearly document and communicate the methodology used to calculate user fees, including the rationale behind each component. Provide detailed breakdowns in each financial report. Review and Oversight: Establish a review and oversight mechanism to monitor the use of funds and the progress of the facility project. Regular updates and financial reports should be shared with all member agencies to maintain trust and accountability. 8.3 Strategic Planning and Collaboration Continuing to involve the City of Spokane in strategic planning and collaborative initiatives can strengthen the overall governance and operational effectiveness of SREC. This could include joint planning sessions, regular feedback mechanisms, and shared initiatives to address emerging challenges in emergency communications. We recommend SREC, and the City of Spokane jointly explore developing a detailed 10-year countywide 9-1-1 strategic plan to resolve the operational, financial, and technological challenges. In 2017, King County published a comprehensive regional E-911 strategic plan which provides: A system to integrate with the state’s E-911 system and local jurisdictions. A ten-year technology investment strategy. A ten-year sustainable financial plan; and An ongoing decision-making governance structure. The King County E-911 Strategic plan produced a governance structure that balanced the needs of multiple jurisdictions of various sizes and needs. The new PN0746 ADCOMM ENGINEERING LLC | B-28 PROJECT NAME| REPORT TITLE APPENDIX B governance structure improved many of the intergovernmental relationships and laid a foundation for continued collaboration. Additionally, developing a 10-year financial plan provided municipalities with financial stability and predictability while ensuring the 9-1-1 system would be on solid financial footing for the next decade. Finally, a ten-year technology investment strategy ensured the residents and visitors of King County would interact with a 9-1-1 system powered by a secure and resilient 9-1-1 network. By implementing these recommendations, SREC can ensure that the City of Spokane’s role in fiscal and governance support is fair, transparent, and reflective of its contribution to and reliance on regional emergency communications services. 8.4 Recommendation to fully participate in SREC or initiate the process to separate Regionalization of 9-1-1 services makes sense academically and can achieve cost and operational efficiencies over time. However, the current structure of SREC is not one we currently recommend the City of Spokane join. There are some integral changes required of SREC and the City to resolve the issues mentioned in this report prior to full participation by the City of Spokane. If improvements are not agreeable to both parties, it may be beneficial for the City of Spokane to maintain an independent 9-1-1 system. The City must understand that separating from SREC is not a cost effective or operationally efficient path and there may be additional hurdles for the City to overcome with regards to its integration in the County’s 9-1-1 system and the State of Washington’s emergency services IP network and funding mechanisms. PN0746 ADCOMM ENGINEERING LLC | B-29 SREC Revenue vs. Expenses 2020-2023 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- 2020202120222023 Revenue Expenses TQPLBOFDPVOUZGJSFDPNNJTTJPOFSTBTTPDJBUJPO 9916!O!Hsffoxppe!Tusffu-!Tqplbof-!XB!::319!!Q;!)364*!:81.9355 QSFTJEFOU;!Qbusjdl!Cvsdi!}!WJDF!QSFTJEFOU;!Fjmffo!Xfzsbvdi!}!TFD0USFBT;!Ojdpmf!Dbtujmmjbop Ejsfdups;!Jtmb!Evsifjn!!!.!!!Ejsfdups;!Njlf!Lftufs!!!.!!!Ejsfdups;!Csjbo!Nbuifs ! ! ! ! ! ! ! ! ! ! ! QSFTJEFOU;!Qbusjdl!Cvsdi!}!WJDF!QSFTJEFOU;!Fjmffo!Xfzsbvdi!}!TFD0USFBT;!Ojdpmf!Dbtujmmjbop! ! Ejsfdups;!Jtmb!Evsifjn!!!.!!!Ejsfdups;!Njlf!Lftufs!!!.!!!Ejsfdups;!Csjbo!Nbuifs! e 92 of 187 g 1 Q Pa 4 47.5% 24.2% 2 0 2 4 Q 3 Nbef!xjui 16.9%16.9% 24.4% 2 0 2 3 Q 3 17.0% 24.5% 2 0 2 2 Q 3 47.3%47.3%47.3% 2 0 2 1 Q 3 47.6%2 0 2 4 Q 2 47.7% 16.9%16.9%16.9% 2 0 2 3 Q 2 16.7% 48.0%2 0 2 2 Q *4 QuarterRolling Average 2 24.7%24.7%24.7%24.7%24.7%16.5% 48.4% 2 0 2 1 Q 2 25.1% 16.3% 48.3% 2 0 2 4 Q 2024 1 48.1%25.6% 2 16.9% 0 2 3 Q Unincorporated Spokane County 1 25.8%16.1%16.1% 47.8%2 0 2 2 Q 1 16.3% 47.4%2 26.0% 0 2 1 Q 1 25.7% 47.2%2 16.6% 0 2 Ă 0 2 47.6%25.0%16.8% 0 2 3 Q 0 48.2% 24.6% 2 0 2 2 Q 0 16.7%16.7% 48.7%24.2% 2 0 2 1 Q 0 49.3%16.6% 2 0 2 4 Q 9 16.1% 49.8% 1 0 2 3 Q 9 16.5% 1 49.6% 0 2 2 Q 9 16.1% 49.9%1 0 2 1 Q 2019 9 15.5% 1 50.6%24.0%24.0%24.0%24.0%24.0% 15.5% 0 2 Taxable Sales by Quarter Percentage of Countywide The percentage of Taxable Retail Sales has been increasing steadily in Spokane CitySpokaneValleyUnincorporated SpokaneCounty 1620 N. Rebecca St. Spokane, WA 99217 SREC911.org Response Letter to Mayor Brown September 9, 2024 CODY ROHRBACH – Chair Spokane County Fire District 3 Mayor Lisa Brown BRAD RICHMOND – Vice Chair City of Spokane Airway Heights Police 808 W. Spokane Falls Blvd. Department Spokane, WA 99201 JOHN NOWELS Spokane County Sheriff’s Office Dear Mayor Brown, FRANK SOTO, JR. Spokane Regional Emergency Communications (SREC) received your letter and a copy of Spokane Valley Fire your consultant’s report by ADCOMM Engineering. SREC’s Governing Board and Department administration have spent time reviewing the position of the City of Spokane (“City”) in SCOTT SIMMONS detail. We appreciate the effort the City has taken to fully understand all the Spokane County components of the regionalized emergency communications system. HOWARD JOHNSON From your letter and our subsequent meetings, we understand that the City will be Spokane County Fire District 4 moving forward with fully incorporating its agencies within SREC—meaning the DAVE ELLIS Spokane Police Department (SPD) will join the regionalized model if the City can resolve Spokane Valley Police key issues noted in your letter and the associated report. The SREC Board convened on Department August 29, 2024 to discuss the key issues in detail in preparation of this response. The TOM WILLIAMS Board concluded that we agree on more than we disagree and that clarifying the intent Spokane Fire Department of the City will be crucial in determining next steps. MAGGIE YATES Governance Model City of Spokane The City requests greater representation on SREC’s Board and we agree. As ADCOMM GAYNE SEARS states in the report, “Overall, SREC’s governance structure includes a diverse Board, Citizen Representative structured committees, and specific agreements to ensure effective management and operations, with significant input and support from the City of Spokane.” SREC’s Board LORI MARKHAM recommends the addition of the City of Spokane Police Chief once the City joins SREC. Executive Director This is consistent with the original intent of Board composition at the time of inception. This will provide the City with three direct Board seats. Further, the City has additional representation on the Board through the Inland Empire Fire Chief’s Association and the EMS Council, giving the City more representation than any other entity (current Washington State Office of Financial Management census data indicates the City holds 42% of the population within Spokane County). Please note that the current governance model prioritizes regional public safety over individual entities and any entity with a majority controlling power would not be consistent with the intent of a regional governance model. Financial Model The City expressed concerns over SREC’s financial model, specifically the City’s belief that user fees are unnecessary and excessive. ADCOMM notes in their analysis that SREC’s financial model is a sustainable model, which is an enduring priority the SREC Board has for the agencies and communities we serve. ADCOMM further states in the City’s report that SREC is funded through a combination of sales and excise taxes and member agency fees (user fees). The report continues, “\[t\]hese diverse revenue streams confirm the sustainability and enhancement of emergency communication services in Spokane County.” At this time, the Board cannot commit to eliminating 1620 N. Rebecca St. Spokane, WA 99217 SREC911.org or reducing user fees. The SREC Board believes that planning for known future capital and operating expenses while minimizing debt is the most cost-effective way of conserving tax payer resources to achieve the economies of scale to which SREC has committed. SREC’s Finance Committee and Board continually evaluate sales and excise taxes, user fees, operating expenses and capital based on the needs of member agencies and desired service levels. We hope the City will continue to participate in these discussions and decisions. Please note that prior to the creation of SREC, when the City managed emergency communication services under the Combined Communications Center (CCC), the City charged user fees for all regional fire agencies; with the exception that the City paid a 50% reduced rate compared to other member agencies, which some member agencies viewed as inequitable. Reserves & Service Levels SREC currently holds $33M in reserves, $14M of which was transferred to SREC by Spokane County in 2021. The Board unanimously voted to commit the $14M for identified future facility capital needs, which are currently projected to be more than $30M. The other $19M in reserves was realized over ve years and committed by the SREC Board for identified future projects, including maintaining three full months of operating reserves. In the event of an unforeseen economic downturn, this will ensure SREC can continue to operate, providing critical public safety services to the community for up to three months without the need for additional taxes to fund these essential services. The ADCOMM report recommends that accrual and expenditure of capital reserves be formally adopted in Service Level Agreement(s) (SLA); specifically, allocations for new facility construction. The SREC Board supports establishing an SLA between the City and SREC, including an SLA for Spokane Police Department, to meet the needs of each entity. The Board is willing to discuss including potential allocations for facility needs as part of the SLA and recommends that any proposals be brought in front of the established Operational Groups for Law & Fire and/or the SREC Board for further discussion. The SREC Board has and will continue to weigh and evaluate viable funding options for public safety priorities. The Board believes that appropriately saving for identified future needs is an integral part of being good stewards of regional tax dollars. Inaccurate Tax Revenue Numbers Your letter states that 65% of SREC’s annual tax revenue is contributed through sales tax generated within the City, so a user fee for the City would constitute a “second tax” on City residents. According to data directly from the Washington State Department of Revenue for Spokane County, the percentage of taxable retail sales in the City is 48%. Furthermore, a significant portion of the sales tax revenues generated within the City are from non-City residents. Sales tax revenues alone do not cover the cost of effectively managing and maintaining an emergency communications center at the service level that our communities expect. User fees are an integral part of a regionalized model andare an equitable way to ensure all agencies are proportionally investing in essential emergency services. User fees are funded by our member agencies out of their existing funding, not as a second tax. 1620 N. Rebecca St. Spokane, WA 99217 SREC911.org Lack of Context for User Fee Data The ADCOMM report highlights that SREC user fees have increased 64% over 5 years. This percent is a total overall increase from 2020 to 2024 across all agencies but is misleading given the lack of context. The majority of this increase is due to the City of Spokane Fire Department (SFD) joining SREC in 2022, at the request of the City, which increased the total amount of user fees collected. Outside of the increase caused by SFD joining, SREC user fees increased 19% over five years. This rate is below average inflation rates and due primarily to rising salary and benefits costs for our valued employees. Spokane Fire Department User Fees Explained—Additional Context SFD user fees increased approximately 30% from 2023 to 2024. This is because SFD’s initial move to join SREC in November 2022 was on an emergency basis, at the City’s request. At that time, user fees for the upcoming year were already established for existing member agencies. Given the emergency nature and timing of the request, initial fees for SFD were not established until an accurate assessment of workload could be conducted. Once actual workload was assessed and it was understood that SFD was paying at a reduced rate in comparison to other member agencies, rates were adjusted to accurately reflect the costs of service delivery and ensure that rates were equitable across all member agencies. More importantly, SFD still realized a cost savings by joining, as well as reduced call times of approximately 30 seconds per call. Transparency, Accountability, and Collaboration SREC will continue to practice transparency, accountability, and collaboration, as it has always done. SREC appreciates the continued participation from the City’s representatives in SREC Board and committee meetings. Existing SREC Board policies and practices allow for transparency, accountability, and collaboration. We look forward to continued engagement from the City. Substantial Costs and Duplication of Services for City Run PSAP SREC’s number one priority is the safety of our citizens—and 911 calls will continue to be answered through this transition, regardless of the path the City chooses. ADCOMM’s analysis cost investment as well as substantial ongoing costs, while also duplicating services that SREC already provides to 21 of our 22 emergency service agencies across Spokane County. Additionally, ADCOMM’s projections show that the City’s share of tax revenues would not cover these expenses, far exceeding the cost of participating as a member agency of SREC. We hope the City evaluates the conclusions from the ADCOMM Report in support of a regionalized model that creates of services and tax dollars for our community. Moving Forward Based on the SREC Board’s understanding that the City will be moving forward with SPD joining SREC, the SREC Board recommends engaging in a number of planning activities with the City should the following critical items be satisfactorily addressed: The City agrees to enter into an Interlocal Agreement with Spokane County whereby the City would agree to forego any current and future apportionments of emergency 1620 N. Rebecca St. Spokane, WA 99217 SREC911.org B should see any value in taking on the of invoices and payments. We believe this should be accomplished no later than October 31, 2024. Commissioners of adding one (as part of SPD joining) . Once the above items are agreed to and completed, the SREC Board recommends the formation of a transition team to begin working on the timing and logistics of SPD dispatch joining SREC. We believe this work could start November 1, 2024 or sooner if the above items are finalized. The transition team would focus on planning activities including but not limited to the following: Development of a service agreement acceptable to both SREC and SPD Establishment of a formal date whereby SREC would take on SPD dispatch services once plan for all current SPD dispatchers who wish to join SREC—it’s important to note that SREC welcomes all current SPD dispatch employees to SREC and Once part of SREC, your Board members, who should be fully empowered by you and the City Council to make decisions, can work to advocate items important to the City such as user fee model analysis and other suggestions to improve our system. The SREC board requests your decision on the above by September 16, 2024. If given SREC’s position, particularly on the governance model, user fees, and apportionment of sales and excise taxes, the City decides to change course and stand up its own PSAP, you will need to notify SREC immediately. We are at two critical juncture points that will determine the near-term future of regional emergency communications—the implementation of the Computer Aided Dispatch (CAD) system and facility planning—we simply cannot continue to extend the conversation, but instead need to act to ensure the best possible outcome for our community. Should the SREC Board not receive clarification on direction from the City by September 16, 2024, we will assume the City will be moving forward with establishing themselves as a Primary PSAP. SREC will then begin the planning efforts for the City to become its own PSAP and set a date for transitioning 911 calls to the City, including SFD dispatch responsibilities. We would also work with Spokane County to appropriately apportion both the Emergency Communications sales taxes and the 911 excise taxes to the City. SREC will endeavor to work on a seamless transition that does not create a detrimental impact to the other 21 public safety agencies we serve. In closing, the SREC Board strongly believes that we are better together and that leveraging our collective resources and technology will provide the best outcome for the City as well as our 21 members agencies—creating a strong regionalized model that serves our citizens well. 1620 N. Rebecca St. Spokane, WA 99217 SREC911.org We hope this letter clarified any questions you may have had of SREC and that you in turn can clarify your decision no later than September 16, 2024. Respectfully, ______________________________________ ______________________________________ Chief Cody Rohrbach, Chairman Chief Brad Richmond, Vice Chairman Spokane Regional Emergency Communications Spokane Regional Emergency Communications Cc: Chris Jordan, Spokane County Commissioner Amber Waldref, Spokane County Commissioner Josh Kerns, Spokane County Commissioner Mary Kuney, Spokane County Commissioner Al French, Spokane County Commissioner Spokane City Council City of Spokane Valley City Council John Hohman, City of Spokane Valley City Manager Erik Lamb, City of Spokane Valley Deputy City Manager Cheney City Council Chris Grover, Cheney Mayor Albert Tripp, Airway Heights City Manager Liberty Lake City Council Mark McAvoy, Liberty Lake City Administrator FOR IMMEDIATE RELEASE: CONTACT Date: 09.09.2024Kelly Conley Communication and Media Manager (509) 822-1846 kelly.conley@SREC911.org SREC welcomes City of Spokane Police Department to Regionalized Emergency Communications Next steps include development of transition team September 9, 2024,Spokane, Wash.TodaySpokane Regional Emergency Communications (SREC) Department (SPD) joining the regionalized emergency communications center. Currently, 21 of Spokane City of Spokane Fire Department. next steps for the formation of an official transition committee to start the important work of welcoming SPD to the regionalized system. Among the key issues addressed in the letter are Board Governance, servicelevels. Board Chair and Spokane County District 3 Fire Chief Cody Rohrbach,emphasized the importance of collaborationand partnerships, stating, "The SREC Boardremains committed to a cooperative approach that prioritizes our communityssafety.Our commonalities far outweigh our differences, and through united efforts, I am confident that we will further enhance regional emergency communications for all of our agencies and the communities that they serve. Concurrently, we remain committedtoensuring operational efficiency and responsible use of taxpayer funds. About Spokane Regional Emergency Communications Spokane Regional Emergency Communications (SREC) is a regionalized emergency response communications organization formed in 2018 as a Public Development Authority. Located in Spokane, Washington, SREC serves more than 550,000 citizens throughout the countyas the primary PSAP for the region. In addition to answering emergency and non-emergency calls, SREC provides Fire and Law Dispatch services to 14 local Fire Protection Authorities and 7local Law Enforcement Agencies in Spokane County21 of the 22 agencies. These services span more than 1,700 miles, and include management of more than 4,900 radios, 23 tower sites, and a backup center. SREC also writes reports for most of the law enforcement agencies in the region. We currently employ approximately 137employees across the organization. Our mission is to get the right resources to the right location with an uncompromising focus on responder and citizen safety. ϔϔϔ BOARDOFFIRECOMMISSIONERS 2120 N. Wilbur Rd SpokaneValley,WA99206 September14,2024 (509)928-1700Main (509)892-4125Fax CityofSpokane spokanevalleyfire.com 808WSpokaneFallsBlvd Spokane, WA 99201 DearCityofSpokane, The ongoing discourse between the City of Spokane and our regional communication system, SpokaneRegionalEmergencyCommunications(SREC),has raisedseveral concerns thatwefeel need to be addressed directly. Our primary focus remains on providing exceptional public safety services, and we are committed to ensuring that this remains our top priority. 1.TheEffectivenessofOurRegionalCommunicationSystem Oursystem,whichoperateswiththecollaborationof21top-tieragencies(includingtheCityof SpokaneFireDepartment),hasbeenfunctioningexceptionallywell.Theclaimsthatsuggest otherwisearenotsupportedbytheoperationalresultsandfeedbackfromtheinvolvedexperts.Itis dishearteningtoseesuggestionsofinadequacywhenthesystem’sperformancespeaksvolumes about its effectiveness. 2.ConcernsOverIncreasedGovernmentInvolvement TheCityofSpokane’sproposaltogaincontroloverthiswell-functioningsystemraisesconcerns. Webelievethatintroducingadditionallayersofgovernmentoversight,particularlyfromthoseless familiarwithpublicsafetyoperations,couldjeopardizethehighlevelofservicecurrentlybeing provided.Thisisnotaboutresistingchangebutaboutprotectingthequalityofpublicsafety services that our community relies on. 3.FinancialConsiderations Thereseemstobeamisunderstandingormisrepresentationregardingthefinancialmanagementof the system. Here are some clarifications: •UserFeesandReserves:Userfeesarenotallocatedtoreservesbutarespecifically designated for operational costs. •FundingAllocation: The1/10of1%taxisdedicated tocriticalareassuchas CADsystems, radios,andnewfacilities,ensuringthatourtechnologyandinfrastructureareuptodate. •Contributions:TheCity'sfinancialcontributiontothesystemisactuallydecreasing(down 3.1%since2019),whilethecounty'scontributionisincreasing(up1.4%since2019),per WADepartmentofRevenue.Thisreflectsashiftinfundingresponsibilitiesandshouldbe understoodinthebroadercontextofregionalfinancialdynamics. 4.TheCity'sProposalforBonds We are puzzled by the City’s desire to issue bonds when a strategic plan is already in place to manage and utilize existing funds effectively, as stated at the SREC Board meeting on August 29, 2024. Issuing bonds could impose additional tax burdens on our community, contrary to our goal of cost-efficiency and fiscal responsibility. 5.CallforConstructiveEngagement If the City of Spokane believes it can enhance public safety by creating an independent system, we welcome that initiative. However, if the current system is indeed performing with “issues” as suggested,itraisesquestionsastowhytheCitywouldwanttojoinit,pertheCityofSpokaneSREC Analysis report. Our stance is clear: our system is operating effectively, and we are not inclined to negotiate based on political motivations. Inconclusion,ourdedicationtomaintainingatop-tiercommunicationsystemremainsunwavering. We are committed to serving the public’s safety and ensuring efficient use of taxpayer resources. We urge the City of Spokane to consider these points carefully and work collaboratively tosupport the ongoing success of our regional communication system. Thankyouforyourattentiontothismatter. JohnGuarisco JohnGuarisco(Sep14,202411:29PDT) JohnGuarisco FireCommissioner–BoardChair PatrickBurch(Sep14,2024,12:13PDT) PatrickBurch FireCommissioner–BoardViceChair MikeKester(Sep14,2024,13:37PDT) MikeKester FireCommissioner BrianAsmus(Sep14,2024,13:39PDT) BrianAsmus FireCommissioner RickFreier(Sep14,2024,13:42PDT) RickFreier FireCommissioner CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 15, 2024 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 2024 Budget Amendment. GOVERNING LEGISLATION: In order for the City to amend an adopted budget, State law requires the Council to approve an ordinance that appropriates additional funds. PREVIOUS COUNCIL ACTION TAKEN: The Council last took formal action on the 2024 Budget when it was amended on June 4, 2024, for the first time. BACKGROUND: Since the amendment of the 2024 Budget on June 4, 2024, a number of events have transpired in the normal course of operations that necessitate a second 2024 Budget amendment. They include: #001 - General Fund The total of both recurring and nonrecurring revenues reflects an increase of $263,200, which is comprised of: $1,183,000 decrease in sales tax due to updated estimates. $100,000 decrease in grant proceeds due to not receiving a grant that was anticipated during the 2024 budget development process. $1,546,200 increase in transfers in from the Capital Reserve Fund #312 including estimated total costs for the repairs to City Hall during 2024 of $1,424,000 and costs related to the Police and Public Space Planning study of $122,200. An increase of $6,311,232 in appropriations (expenditures) comprised of: $15,000 increase in the Council Department professional services to cover the cost of third- party investigations. $150,000 increase in outside legal service costs in the City Attorney Department. This increase is related to a significant increase in complex land use issues requiring outside expertise as well as the use of contracted services for third-party investigations and other Council related legal issues. $26,200 increase in the Facilities Department to cover window and carpet cleaning at City Hall as well as chair mats to protect City Hall carpeting. $1,424,000 related estimated total costs for the repairs to City Hall during 2024. $122,200 for professional services related to a Police and Public Safety Space Planning study. $155,000 for the demolition of the Balfour Facility discussed at the October 1, 2024, Council Meeting. $21,000 for professional services for an audit for the Energy Retrofit Grant at CenterPlace which was approved at the September 17, 2024, Council Meeting. $4,397,832 transferred to Capital Reserve Fund #312 which represents the 2022 yearend fund balance in excess of 50% of recurring expenditures. #121 – Service Level Stabilization Fund Increase revenues by $688,000 to reflect updated estimated interest income of $288,000 and a transfer in from the Capital Reserve Fund #312 of $400,000 that was approved by Council at the December 19, 2023, Council Meeting for the purpose of building the reserve balance. Page 1 of 4 #302 – REET 2 Capital Projects Fund Increase expenditures by $499,534 due to changes in the expected transfers out to the Street Capital Projects Fund #303 and the Railroad Grade Separation Projects Fund #314 to reflect current estimates. See further explanations below. #303 – Street Capital Projects Fund Revenues and expenditures are proposed to increase by $992,711 to reflect current estimates on various projects. The most significant changes include: The Barker Road Improvements – Appleway to I-90 project is being increased by $221,000 due to the updated timing of the project. The Trent Ave. Access Control Safety Improvements project is being increased by $419,000 due to the updated timing of the project. th The 16 Ave. Preservation – Evergreen to Adams project is being increased by $352,711 due to the updated timing of the project. #309 – Park Capital Projects Fund This fund is being amended to reflect current estimates on several projects. Revenues are increased by $326,299. This is primarily due to an increase in transfers in from the Capital Reserve Fund #312 related to the Balfour Park – Phase 1 project. Expenditures increase by $532,000, including: $530,000 increase for Balfour Park – Phase 1 project due to updated timing on the project. $2,000 increase for the Sullivan Park Water Line project due to updated timing on the project. #311 – Pavement Preservation Fund Revenues are increased by $358,362 consisting of an increase in grant proceeds due to updated project estimates. Increase expenditures by $2,120,165 to reflect current estimates and timing on several projects, th including the 16 Ave. Preservation – Evergreen to Adams project and the Indiana Ave. Preservation – Sullivan to Desmet project for $1,122,539 and $1,670,000, respectively. #312 – Capital Reserve Fund Revenues are increased due to a transfer of $4,397,832 from General Fund #001 which represents the 2022 yearend fund balance in excess of 50% of recurring expenditures. Increase expenditures/appropriations by $2,599,384, including: Increase of $1,424,000 in transfers to the General Fund for estimated total costs for the repairs to City Hall during 2024. Increase of $122,200 in transfers to the General Fund for professional services related to a Police and Public Safety Space Planning study. Increase of $400,000 in transfers to the Service Level Stabilization Fund #121 that was approved by Council at the December 19, 2023, Council Meeting for the purpose of building the reserve balance. Increase of $326,299 in transfers to the Parks Capital Projects Fund #309 related to an updated timing of the Balfour Park Phase 1 and the Sullivan Park Water Line projects. Increase of $326,885 in transfers out to the Railroad Grade Separation Projects Fund #314 related to updated timing of the Pines Rd Underpass and Sullivan Rd Interchange projects. #314 – Railroad Grade Separation Projects Fund Revenues increase by $ 4,138,411, comprised of: Increase of $ 3,356,111 in grant proceeds to reflect current estimates on the grade separation projects. Page 2 of 4 Increase of $308,592 in developer contributions for the Barker Road grade separation project. Increase of $146,823 in transfers in from the REET 2 Capital Projects Fund #302 for the Sullivan Road Interchange grade separation project. Increase of $326,885 in transfers in from the Capital Reserve Fund #312 for the Pines Road grade separation and the Sullivan Road interchange projects. Expenditures increase by $3,859,378, comprised of: Increase of $2,226,326 due to updated estimates for the Pines Road grade separation project. Increase of $1,633,052 for preliminary engineering for the Sullivan Road interchange project. #402 – Stormwater Fund Expenditures increase by $1,110,000 for updated capital project costs. Council discussed the Stormwater Improvement Plan at the September 3, 2024, Council Meeting. #502 – Risk Management Fund Revenues increase by $4,800 related to updated interest income estimates. Expenditures increase by $125,000 as a result of increased costs of insurance for the City beyond the original estimate. #632 – Passthrough Fees and Taxes Fund Revenues and expenditures increase by $100,000 for updated estimates of passthrough fees and taxes collected by the City on behalf of other public agencies. The 2024 Budget amendment reflects the changes noted above and will affect 11 funds resulting in total revenue increases of $11,269,615 and expenditure increases of $18,249,404. RevenueExpenditure FundFundIncreaseIncrease No.Name(Decrease)(Decrease) 001General Fund263,2006,311,232 121Service Level Stabilization Fund688,0000 302REET 2 Capital Projects Fund0499,534 303Street Capital Projects Fund992,711992,711 309Parks Capital Projects Fund326,299532,000 311Pavement Preservation Fund358,3622,120,165 312Capital Reserve Fund4,397,8322,599,384 314Railroad Grade Separation Fund4,138,4113,859,378 402Stormwater Fund01,110,000 502Risk Management Fund4,800125,000 632Passthrough Fees & Taxes Fund100,000100,000 11,269,61518,249,404 OPTIONS: Future options are to accept the proposed amendments in whole or in-part. RECOMMENDED ACTION OR MOTION: Staff seek Council consensus to move forward with amendments to the 2024 Budget as presented. If approved, we anticipate the following calendar of events leading to Council approval of the amending ordinance. October 29, 2024 – Public hearing on the 2024 Budget Amendment. October 29, 2024 – First reading of Ordinance #24-0XX amending the 2024 Budget. November 19, 2024 – Second reading of Ordinance #24-0XX amending the 2024 Budget. Page 3 of 4 BUDGET/FINANCIAL IMPACTS: Once approved, this action amends the estimated revenues and appropriations for the 2024 Budget that was adopted on November 21, 2023 and amended on June 4, 2024. There are adequate funds available to pay for these amendments. STAFF CONTACT: Chelsie Taylor, Finance Director __________________________________________________________________________ ATTACHMENTS: • Fund level line-item detail of revenues and expenditures. • Fund summaries for all funds affected by the proposed budget amendment. Page 4 of 4 Budget 10/15/2024 CA t 015,00015,0000288,000288,0000400,000400,000 7,0008,20015,200 40,00018,00058,000 100,000(100,000)0100,000150,000250,000 33,709,600(1,183,000)32,526,600 Total recurring revenues(1,283,000) Total recurring expenditures191,200 Total nonrecurring revenues1,546,200 Total nonrecurring expenditures6,120,032 Page 1 of 4 City Hall Repairs01,424,0001,424,000Police & Public Safety Space Planning0122,200122,2002022 #001 fund bal > 50%04,397,8324,397,832Total of all General Fund revenues263,200Total of all General Fund expenditures6,311,232Total revenues688,000 -City Hall Repairs01,424,0001,424,000-Police & Public Safety Space Planning0122,200122,200-Demolition of Balfour Facility0155,000155,000-CenterPlace audit for energy retrofit grant021,00021,000-Updat ed estimate OrganizationObject2024Amended SR121000361100 A t s s Accoun DescriptionCodeCodeDescription / JustificationBudgetAmendmen P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Amendment No 2 Detail v1 for R s Sales TaxGG313110311100-Updated estimate based on 2024 trendsGrant ProceedsCM337000330701-Grant not received in 2024Professional Services - CouncilCC511600541005-Costs for third-party investigationsOutside Legal Services - City AttorneyCA515410541004-Increased need for outside legal counselSmall Tools & Equipment - FacilitiesCH518300535001-Chair mats to protect City Hall carpetingBuilding Repairs & Maintenance - FacilitiesCH518300548007-Window and carpet cleaning costs at City HallTransfer in - #312GG397099393120-Transfer in - #312GG397099393120-City Hall Repairs32251830541005Professional ServicesPS521299541005Professional ServicesBM518399541005Professional ServicesCX575599541005Transfer out - #312GG597099500312-Investment InterestTransfer in - #312-Transfer approved by Council 12/19/23 CITY OF SPOKANE VALLEY, W 2024 Budget - Amendment #2Line Item Detail#001 - General FundRecurring RevenueRecurring ExpendituresNonrecurring Revenue#001 - General Fund - continuedNonrecurring Expenditures#121 - Service Level Stabilization FundRevenue Budget 10/15/2024 CA t 0221,000221,000 440,437352,711793,148182,500146,823329,323440,437352,711793,148220,000326,299546,299 6,949,896419,0007,368,896 Page 2 of 4 Updated construction project estimatesUpdated construction project estimatesTotal expenditures499,534Updated construction project estimatesUpdated construction project estimatesUpdated construction project estimatesTotal revenues992,7112024 Construction Costs 0221,000221,0002024 Construction Costs 0419,000419,0002024 Construction Costs 0352,711352,711Total expenditures992,711Updat ed construction project estimatesTotal revenues326,2992024 Construction Costs 20,000530,000550,0002024 Construction Costs 02,0002,000Total expenditures532,000Updated construction project estimates0358,362358,362Total revenues358,3622024 Construction Costs 3,500,0002,120,1655,620,165Total expenditures2,120,165 ------------- OrganizationObject2024Amended R2597000500303R25970005003143485951054100535459564563000PP595300563000 0 s A t Accoun DescriptionCodeCodeDescription / JustificationBudgetAmendmen P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Amendment No 2 Detail v1 for R sss Transfer out - #303Transfer out - #314Grant ProceedsSP330000330000Developer Contributions34836700361201Transfer in - #302SP397000393020Barker Road Improvements- Appleway to I9Trent Ave Access Control Safety Improveme3495956456300016th Ave Preservation - Evergreen to AdamTransfer in - #312PC397000393120Balfour Park - Phase 131659476563000Sullivan Park Water Line32853410563000Grant ProceedsPP333200332020Pavement Preservation Capital Outlay CITY OF SPOKANE VALLEY, W#302 - REET 2 Capital Projects FundExpenditures#309 - Park Capital Projects FundRevenue 2024 Budget - Amendment #2Line Item Detail#303 - Street Capital Projects FundRevenueExpendituresExpenditures#311 - Pavement Preservation FundRevenueExpenditures Budget 10/15/2024 CA t 01,424,0001,424,0000400,000400,00002,0002,0000308,592308,592 20,000324,299344,29920,094367,906388,00061,698(41,021)20,677 182,500146,823329,323806,792326,8851,133,677 2,112,5303,356,1115,468,641 Page 3 of 4 Sullivan Rd InterchangeTotal expenditures2,599,384 Total revenues4,397,832City Hall RepairsPolice & Public Safety Space Planning0122,200122,200Balfour Park Improvements - Phase 1Sullivan Park Water LinePines Rd UnderpassUpdated construction project estimatesUpdated construction project estimatesUpdated construction project estimatesUpdated construction project estimatesTotal revenues4,138,4112024 Construction Costs 273,6742,226,3262,50 0,0002024 Construction Costs 2,153,9481,633,0523,787,000Total expenditures3,859,3782024 Construction Costs 1,500,0001,110,0002,610,000Total expenditures1,110,000 ---Transfer approved by Council 12/19/23---------- OrganizationObject2024Amended A t Accoun DescriptionCodeCodeDescription / JustificationBudgetAmendmen P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Amendment No 2 Detail v1 for R ss Transfer in - #001CR397000390010-2022 #001 fund bal > 50%04,397,8324,397,832Transfer out - #001CR597000500001Transfer out - #001CR597000500001Transfer out - #121CR597000500121Transfer out - #309CR597000500309Transfer out - #309CR597000500309Transfer out - #314CR597000500314Transfer out - #314CR597000500314Grant ProceedsXXX33320332020Developer ContributionsXXX36700361201Transfer in - #302XXX39700393020Transfer in - #312XXX39700393120Pines Rd Underpass22359550563000Sullivan Rd Interchange31159550563000Capital ProjectsSW595499563000- CITY OF SPOKANE VALLEY, W#312 - Capital Reserve FundRevenue#314 - Railroad Grade Separation Projects FundRevenue 2024 Budget - Amendment #2Line Item DetailExpendituresExpenditures#402 - Stormwater FundExpenditures Budget 10/15/2024 CA t 04,8004,800 500,000100,000600,000500,000100,000600,000 Page 4 of 4 Total revenues4,800Increase in insurance premiums700,000125,000825,000Total expenditures125,000Total revenues100,000Total expenditures100,000Totals Across all FundsTotal revenues11,269,615Total expenditures18,249,404 - OrganizationObject2024Amended RM518900546001PT3863003830XX-Updated estimate PT5860005080XX-Updated estimate A t Accoun DescriptionCodeCodeDescription / JustificationBudgetAmendmen P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Amendment No 2 Detail v1 for R ss Investment InterestRM361100361100-Updated estimate Auto and Property InsuranceFees & Taxes Collected for Other GovernmentsFees & Taxes Remitted to Other Governments CITY OF SPOKANE VALLEY, W#502 - Risk Management FundRevenue 2024 Budget - Amendment #2Line Item DetailExpenditures#632 - Passthrough Fees & Taxes FundRevenueExpenditures P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended #001 - GENERAL FUND RECURRING ACTIVITY Revenues Property Tax13,824,9000013,824,900 Sales Tax33,709,6000(1,183,000)32,526,600 Sales Tax - Public Safety 1,600,800001,600,800 Sales Tax - Criminal Justice2,818,500002,818,500 Gambling Tax and Leasehold Excise Tax485,00000485,000 Franchise Fees/Business Registration1,370,000001,370,000 State Shared Revenues2,469,400002,469,400 Fines and Forfeitures/Public Safety500,60000500,600 Community and Public Works3,481,900003,481,900 Recreation Program Revenues607,20000607,200 Grant Proceeds120,0000(100,000)20,000 Miscellaneous Department Revenue87,0000087,000 Miscellaneous & Investment Interest1,211,200001,211,200 Transfers in - #105 (h/m tax-CP advertising)30,0000030,000 (recording fees H&H Services) Transfers in - #110 0290,0000290,000 Total Recurring Revenues62,316,100290,000(1,283,000)61,323,100 Expenditures City Council721,407015,000736,407 City Manager863,88319,0910882,974 City Attorney932,98018,402150,0001,101,382 City Services1,301,72522,84301,324,568 Public Safety35,251,2480035,251,248 Deputy City Manager595,02315,2030610,226 Finance1,422,45834,69801,457,156 Human Resources380,5338,5840389,117 Information Technology446,17811,2060457,384 Facilities1,313,68512,03826,2001,351,923 Public Works Administration400,4279,0050409,432 Engineering2,015,43041,25102,056,681 Building2,240,95644,70602,285,662 Economic Development1,189,80618,70801,208,514 Planning1,081,09018,04301,099,133 Parks & Rec - Administration720,793(211,611)0509,182 Parks & Rec - Maintenance1,398,583935,58202,334,165 Parks & Rec - Recreation 346,3103,6370349,947 Parks & Rec - Aquatics569,20000569,200 Parks & Rec - Senior Center33,994788034,782 Parks & Rec - CenterPlace675,9809,2320685,212 General Government1,707,540001,707,540 Transfers out - #204 (2016 LTGO debt service)398,95000398,950 (park capital projects) Transfers out - #309 160,00000160,000 Transfers out - #311 (pavement preservation)1,021,900001,021,900 (IT equip reserve) Transfers out - #501 86,5000086,500 Transfers out - #502 (insurance premium)700,00000700,000 (public safety equipment) Transfers out - #503 0473,7220473,722 Total Recurring Expenditures57,976,5791,485,128191,20059,652,907 Recurring Revenues Over (Under) Recurring Expenditures4,339,521(1,195,128)(1,474,200)1,670,193 P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended #001 - GENERAL FUND - continued NONRECURRING ACTIVITY Revenues Grant Proceeds (CLFR)0159,0000159,000 Grant Proceeds (Comp Plan amendment) 325,00000325,000 (City Hall Repairs) Transfers in - #312 001,424,0001,424,000 Transfers in - #312 (pub safety space planning)00122,200122,200 Total Nonrecurring Revenues325,000159,0001,546,2002,030,200 Expenditures General Government - IT capital replacements152,50000152,500 Public Safety (UTV) 36,0000036,000 (public safety space planning) Public Safety 00122,200122,200 Facilities (Precinct repairs & improvements)155,00000155,000 (electric man-lift) Facilities 20,0000020,000 Facilities (CenterPlace repairs & improvements)241,00000241,000 (Clean building requirements) Facilities085,000085,000 Facilities (Demolish Balfour Facility)00155,000155,000 (CenterPlace audit for energy retrofit) Facilities0021,00021,000 Parks & Rec (replace banquet chair at CP)150,00000150,000 (motorized shades for Great Room) Parks & Rec25,0000025,000 Communications (Police staffing comm outreach)017,000017,000 City Hall Repairs001,424,0001,424,000 CLFR Related Project Expenditures03,131,00003,131,000 Financial Software Capital Costs0550,0000550,000 Transfers out - #101 (Street Fund operations)4,592,923(1,392,500)03,200,423 ('22 fund bal >50%) Transfers out - #312 004,397,8324,397,832 Transfers out - #501 (park maint vehicles)085,000085,000 (Public Safety Equip Replc) Transfers out - #503 01,000,00001,000,000 Total Nonrecurring Expenditures5,372,4233,475,5006,120,03214,967,955 Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(5,047,423)(3,316,500)(4,573,832)(12,937,755) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(707,902)(4,511,628)(6,048,032)(11,267,562) Beginning unrestricted fund balance50,122,45050,122,450 Ending unrestricted fund balance49,414,54838,854,888 Fund balance as a percent of recurring expenditures85.23%65.13% P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended SPECIAL REVENUE FUNDS #121 - SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest00288,000288,000 Transfers in - #312 00400,000400,000 Total revenues00688,000688,000 Expenditures Operations0000 Total expenditures0000 Revenues over (under) expenditures0688,000 Beginning fund balance5,651,8545,651,854 Ending fund balance5,651,8546,339,854 CAPITAL PROJECTS FUNDS #302 - REET 2 CAPITAL PROJECTS FUND Revenues REET 2 - Taxes1,500,000001,500,000 Investment Interest100,00000100,000 Total revenues1,600,000001,600,000 Expenditures Transfers out - #303440,4370352,711793,148 Transfers out - #311 (pavement preservation)1,170,350001,170,350 Transfers out - #314182,5000146,823329,323 Total expenditures1,793,2870499,5342,292,821 Revenues over (under) expenditures(193,287)(692,821) Beginning fund balance5,278,6305,278,630 Ending fund balance5,085,3434,585,809 P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended CAPITAL PROJECTS FUNDS - continued #303 - STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds6,949,8960419,0007,368,896 Developer588,1300221,000809,130 Transfers in - #301897,31200897,312 Transfers in - #302440,4370352,711793,148 Total revenues8,875,7750992,7119,868,486 Expenditures 300Pines and Mission Intersection Improvement1,599,256001,599,256 313Barker Rd/Union Pacific Crossing50,0000050,000 320Sullivan Preservation - Sprague to 8th5,000005,000 321Argonne Corridor Imprv - North of Knox19,6080019,608 3262020 Citywide Retroreflective Post Plates0000 327Sprague Stormwater & Crossing Project2,365,000002,365,000 329Barker Road Imp- City Limits to Appleway50,0000050,000 346Bowdish Sidewalk 12th to 22nd2,106,777002,106,777 347Broadway and Park Intersection410,13400410,134 348Barker Road Improvements- Appleway to I9000221,000221,000 349Trent Ave Access Control Safety Improvements00419,000419,000 351Barker Road Imp - Sprague to Appleway595,00000595,000 35416th Ave Preservation - Evergreen to Adams00352,711352,711 366S. Sullivan Preservation - 8th to 12th0000 367Subarea Transportation Plan0000 Argonne Bridge675,00000675,000 Contingency1,000,000001,000,000 Total expenditures8,875,7750992,7119,868,486 Revenues over (under) expenditures00 Beginning fund balance1,969,3551,969,355 Ending fund balance1,969,3551,969,355 Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that the were bid with the pavement preservation work. #309 - PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds0000 Transfers in - #001160,00000160,000 Transfers in - #312220,0000326,299546,299 Total revenues380,0000326,299706,299 Expenditures 316Balfour Park improvements Phase 120,0000530,000550,000 328Sullivan Park water line002,0002,000 Greenacres Park Phase 2200,00000200,000 Total expenditures220,0000532,000752,000 Revenues over (under) expenditures160,000(45,701) Beginning fund balance338,459338,459 Ending fund balance498,459292,758 P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended CAPITAL PROJECTS FUNDS - continued #311 - PAVEMENT PRESERVATION Revenues Transfers in - #0011,021,900001,021,900 Transfers in - #3011,170,350001,170,350 Transfers in - #3021,170,350001,170,350 Grant Proceeds00358,362358,362 Total revenues3,362,6000358,3623,720,962 Expenditures Pavement preservation3,500,00002,120,1655,620,165 Pre-project GeoTech50,0000050,000 Total expenditures3,550,00002,120,1655,670,165 Revenues over (under) expenditures(187,400)(1,949,203) Beginning fund balance4,127,3474,127,347 Ending fund balance3,939,9472,178,144 #312 - CAPITAL RESERVE FUND Revenues Transfers in - #001 ('22 fund bal >50%)004,397,8324,397,832 Investment Interest 500,00000500,000 Total revenues500,00004,397,8324,897,832 Expenditures Transfers out - #001 (City Hall Repairs)001,424,0001,424,000 (pub safety space planning) Transfers out - #001 00122,200122,200 Transfers out - #121 (Stabilization Reserve)00400,000400,000 (Balfour Park Improvements Ph Transfers out - #309 20,0000324,299344,299 Transfers out - #309 (Sullivan Park water line)002,0002,000 (Greenacres Park Ph2) Transfers out - #309 200,00000200,000 Transfers out - #314 (Barker Rd Overpass)725,00000725,000 (Pines Rd Underpass) Transfers out - #314 20,0940367,906388,000 Transfers out - #314 (Sullivan Interchange)61,6980(41,021)20,677 WSDOT Sullivan Park Property Acquisition0759,6000759,600 Total expenditures1,026,792759,6002,599,3844,385,776 Revenues over (under) expenditures(526,792)512,056 Beginning fund balance11,996,25911,996,259 Ending fund balance11,469,46712,508,315 P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended CAPITAL PROJECTS FUNDS - continued #314 - RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds2,112,53003,356,1115,468,641 Developer Contributions00308,592308,592 Transfers in #30180100801 Transfers in #302182,5000146,823329,323 Transfers in #312806,7920326,8851,133,677 Total revenues3,102,62304,138,4117,241,034 Expenditures 143Barker BNSF Grade Separation725,00000725,000 223Pines Rd Underpass273,67402,226,3262,500,000 311Sullivan Rd Interchange2,153,94801,633,0523,787,000 Total expenditures3,152,62203,859,3787,012,000 Revenues over (under) expenditures(49,999)229,034 Beginning fund balance117,460117,460 Ending fund balance67,461346,494 ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees5,600,000005,600,000 Investment Interest40,0000040,000 Miscellaneous0000 Total Recurring Revenues5,640,000005,640,000 Expenditures Wages / Benefits / Payroll Taxes1,316,97632,34601,349,322 Supplies44,7000044,700 Services & Charges2,422,317002,422,317 Intergovernmental Payments48,0000048,000 Vehicle rentals - #50113,0000013,000 Total Recurring Expenditures3,844,99332,34603,877,339 Recurring Revenues Over (Under) Recurring Expenditures1,795,007(32,346)01,762,661 NONRECURRING ACTIVITY Revenues Grant Proceeds0000 Miscellaneous0000 Total Nonrecurring Revenues0000 Expenditures Capital - various projects1,500,00001,110,0002,610,000 Watershed studies150,00000150,000 Asset management software system0000 Total Nonrecurring Expenditures1,650,00001,110,0002,760,000 Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(1,650,000)0(1,110,000)(2,760,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures145,007(32,346)(1,110,000)(997,339) Beginning working capital4,550,1584,550,158 Ending working capital4,695,1653,552,819 P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 15 Admin Report\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/15/2024 2024 Budget Summary for Amended Funds 2024 As1st2ndAs AdoptedAmendmentAmendmentAmended INTERNAL SERVICE FUNDS #502 - RISK MANAGEMENT FUND Revenues Investment Interest004,8004,800 Transfers in - #001700,00000700,000 Total revenues700,00004,800704,800 Expenditures Auto & Property Insurance700,0000125,000825,000 Miscellaneous0000 Total expenditures700,0000125,000825,000 Revenues over (under) expenditures0(120,200) Beginning fund balance460,525460,525 Ending fund balance460,525340,325 FIDUCIARY FUNDS #632 - PASSTHROUGH FEES & TAXES FUND Revenues Fees & taxes collected for other governments500,0000100,000600,000 Total revenues500,0000100,000600,000 Expenditures Fees & taxes remitted to other governments500,0000100,000600,000 Total expenditures500,0000100,000600,000 Revenues over (under) expenditures00 Beginning fund balance00 Ending fund balance00