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2024, 10-29 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, October 29, 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 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: National American Indian Heritage Month 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 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: 2024 Budget Amendment Chelsie Walls \[public comment opportunity\] 2. Ordinance 24-014: First Reading, 2024 Budget Amendment Chelsie Walls 3. Ordinance 24-015: First Reading, 2025 Budget Chelsie Walls 4. Motion Consideration: Holiday City Closure John Whitehead \[public comment opportunity\] Council Agenda October 29, 2024 Page 1 of 2 5. Motion Consideration: Public Defender Caseload Standards Erik Lamb \[public comment opportunity\] NON-ACTION ITEMS: 6. Admin Report: TPA: Spokane Sports & 116 & West proposals Lesli Brassfield 7. Admin Report: Homeless Program Update Eric Robison, Deputy Pratt 8. Admin Report: STA ILA for fiber use Kelly Konkright 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 29, 2024 Page 2 of 2 Proclamation City of Spokane Valley, Washington National American Indian Heritage Month WHEREAS the history and culture of our great nation have been significantly influenced by American Indians and indigenous peoples; and WHEREAS the contributions of American Indians have enhanced the freedom, prosperity, and greatness of America today; and WHEREAS their customs and traditions are respected and celebrated as part of a rich legacy throughout the United States; and WHEREAS Native American Awareness Week began in 1976 and recognition was expanded by congress and approved by President George Bush in August 1990, designating the month of November as National American Indian Heritage Month; and WHEREAS in honor of National American Indian Heritage Month, community celebrations as well as numerous cultural, artistic, educational, and historical activities have been planned. NOW, THEREFORE, I Pam Haley, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Councilmembers, do hereby proclaim November as National American Indian Heritage Month in Spokane valley and we urge citizens to observe this month with appropriate programs, ceremonies, and activities. th Dated this 29 day of October 2024. ! ! ! !!!!!!!```````````````````````````````````!! !!!!!!!Qbn!Ibmfz-!Nbzps CITY OF SPOKANE VALLEY Request for Council Action Meeting Date:October 29, 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: Public Hearing on the 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, 2023. On October 15, 2024, an Administrative Report was delivered to Council regarding the need for a budget amendment. 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. Proposed amendment items 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: $50,000 increase in the Council Department professional services to cover the cost of third- party investigations. $115,000 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. 1 #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. #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 16Ave. 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. 2 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. 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. 3 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: The purpose of this evening’s public hearing is to consider input from the public on the proposed budget amendment and no action is required of Council at this time. Anticipated future action by the Council includes: October 29, 2024 – First reading of Ordinance #24-014 amending the 2024 Budget. November 19, 2024 – Second reading of Ordinance #24-014 amending the 2024 Budget. BUDGET/FINANCIAL IMPACTS: 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 Walls, Finance Director ___________________________________________________________________________ ATTACHMENTS: Fund level line-item detail of revenues and expenditures. Fund summaries for all funds affected by the proposed budget amendment. 4 P:\\Finance\\Budgets\\2024 Budget\\Budget Amendment\\Budget Amendment #2\\2024 10 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 Council721,407050,000771,407 City Manager863,88319,0910882,974 City Attorney932,98018,402115,0001,066,382 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 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 29 Public Hearing & 1st Reading\\Public Hearing\\2024 Budget Summary for Amended Fund No 2 CITY OF SPOKANE VALLEY, WA 10/29/2024 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 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date:October 29, 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: First reading of proposed Ordinance #24-014 which amends the 2024 Budget. 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. On October 15, 2024, an Administrative Report was delivered to Council regarding the need for a budget amendment. Finally, earlier this evening a public hearing was held on this topic. 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. Proposed amendment items 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: $50,000 increase in the Council Department professional services to cover the cost of third- party investigations. $115,000 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. 1 $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. #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 16Ave. 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. 2 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. 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 Revenuesand expendituresincrease 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. 3 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: Options are to accept the proposed amendments in whole or in-part. RECOMMENDED ACTION OR MOTION: Move to advance Ordinance #24-014 amending the 2024 Budget to a second reading. BUDGET/FINANCIAL IMPACTS: 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 Walls, Finance Director ATTACHMENTS: Draft Ordinance #24-014 Amending the 2024 Budget 4 DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 24-014 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING ORDINANCE 23-021, WHICH ADOPTED A BUDGET FOR THE PERIOD JANUARY 1, 2024 THROUGH DECEMBER 31, 2024, AS SUBSEQUENTLY AMENDED BY ORDINANCE 24-010; AND OTHER MATTERS RELATED THERETO. WHEREAS, the City Council approved Ordinance 23-021 on November 21, 2023, which adopted the 2024 annual budget; and WHEREAS, the City Council approved Ordinance 24-010 on June 4, 2024, which amended the 2024 annual budget, and WHEREAS, subsequent to the November 21, 2023 adoption and June 4, 2024 amendment of the 2024 annual budget, it has become necessary to make changes by adding new revenue, appropriations, amendments, and transferring funds in order to properly perform City functions, services and activities; and WHEREAS, the budget changes set forth in this Ordinance could not have been reasonably anticipated or known when the 2024 annual budget was passed by the City Council; and WHEREAS, the City Council has determined that the best interests of the City are served by amending the 2024 budget to reflect unanticipated revenue, expenditures, transfers, and appropriating the same as set forth herein. NOW THEREFORE, the City Council of the City of Spokane Valley, Washington do ordain as follows: Section 1. Amended Revenues and Appropriations. Ordinance No. 23-021 adopted a budget for the twelve months beginning January 1, 2024 and ending December 31, 2024, and Ordinance 24-010 amended the budget for the same period. Each item, revenue, appropriation, and fund contained in Section 1 of Ordinance 23-021, as subsequently amended by Ordinance 24-010, is hereby further amended as set forth in Attachment A to this Ordinance, which is incorporated herein. Section 2. Severability.If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 3. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. Passed by the City Council of the City of Spokane Valley this ____ day of November 2024. ATTEST: _____________________________________ Pam Haley, Mayor Ordinance 24-014 amending the 2024 budget Page 1 of 4 ___________________________ Marci Patterson, City Clerk Approved as to form: __________________________ Office of the City Attorney Date of Publication: _______________ Effective Date: ___________________ Ordinance 24-014 amending the 2024 budget Page 2 of 4 4 of 3 Page A ATTACHMENT 2024 budget amending the 24-014 Ordinance CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 29, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE:First Reading of Proposed Ordinance #24-015Adopting the 2025 Budget. GOVERNING LEGISLATION: State budget law. PREVIOUS COUNCIL ACTION TAKEN: To date the Council has heard presentations on the 2025 Budget on five previous occasions including two public hearings. Thus far no formal Council action has been taken. BACKGROUND: This marks the sixth 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 2025 Budget Overview: The 2024 Budget currently includes appropriations of $149,637,715 including $56,300,103 in capital expenditures, partially comprised 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. 1 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 $63,244,022 is $3,591,115 or 6.02% 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 5.43%. Budgeted recurring revenues currently exceed recurring expenditures by $411,278 or 0.65% 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 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 $1,112,444. The projected ending fund balance for the General Fund at the end of 2025 is currently $37,742,444 or 59.68% of recurring expenditures. 2 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. 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 Fees that are estimated at $6,170,000. 3 The City’s 2025 Budget is adopted at a fund level as follows: EstimatedEstimated BeginningEnding FundFundT otalFund Annual Appropriation FundsNo.BalanceRevenuesSourcesAppropriationsBalance General Fund00138,854,88863,655,30064,767,74464,767,74437,742,444 Street Fund1014,068,6819,362,90013,431,5819,250,0854,181,496 Paths & Trails Fund10357,82010,30068,120068,120 Hotel/Motel Tax - Tourism Facilities Fund1042,018,390790,0002,808,39002,808,390 Hotel/Motel Tax Fund105228,031920,0001,148,031923,000225,031 Solid Waste1061,194,636320,0001,514,636119,2891,395,347 PEG Fund107230,91160,000290,91173,000217,911 Affordable & Supportive Housing Sales Tax Fun1081,008,632215,0001,223,63201,223,632 Tourism Promotion Area Fund109300,7401,300,0001,600,7401,275,000325,740 Homeless Housing Program Fund110126,547290,000416,547344,00072,547 Transportation Benefit District Fund11102,785,0002,785,0002,785,0000 CenterPlace Operating Reserve Fund120300,0000300,0000300,000 Service Level Stabilization Fund1216,339,854288,0006,627,85406,627,854 Winter Weather Reserve Fund122554,56815,000569,568500,00069,568 LTGO Bond Debt Service Fund2040970,950970,950970,9500 REET 1 Capital Projects Fund3015,382,1271,700,0007,082,1271,728,1505,353,977 REET 2 Capital Projects Fund3024,585,8091,775,0006,360,8091,891,9504,468,859 Street Capital Projects3031,969,3556,488,6458,458,0006,488,6451,969,355 Park Capital Projects Fund309292,7581,861,7612,154,5191,861,761292,758 Civic Facilities Capital Projects Fund31020,4741,20021,674021,674 Pavement Preservation Fund3112,178,1443,888,4116,066,5552,050,0004,016,555 Capital Reserve Fund31212,508,315650,00013,158,3154,990,1238,168,192 Railroad Grade Separation Projects Fund314346,49441,241,19741,587,69141,241,197346,494 Transportation Impact Fees Fund3151,437,793430,0001,867,79301,867,793 Economic Development Capital Projects Fund31600000 84,004,967139,018,664185,281,187141,259,89481,763,737 EstimatedEstimated BeginningEnding FundWorkingTotalWorking Working Capital FundsNo.CapitalRevenuesSourcesAppropriationsCapital Stormwater Management Fund4023,552,8196,260,0009,812,8195,692,8214,119,998 Aquifer Protection Area Fund4031,055,24820,0001,075,2481,000,00075,248 Equipment Rental & Replacement Fund5011,164,922579,7001,744,622185,0001,559,622 Risk Management Fund502340,325904,8001,245,125900,000345,125 Public Safety Equipment Replacement Fund5031,473,722473,7221,947,44401,947,444 Passthrough Fees & Taxes6320600,000600,000600,0000 7,587,0368,838,22216,425,2588,377,8218,047,437 Total of all Funds91,592,003147,856,886201,706,445149,637,71589,811,174 OPTIONS: State law requires the City to adopt a budget prior to December 31. Council may adopt the budget as presented or alter it as they deem necessary. RECOMMENDED ACTION OR MOTION: Move to advance Ordinance #24-015 adopting the 2025 Budget to a second reading. BUDGET/FINANCIAL IMPACTS: Adoption of Ordinance #24-015 concludes the 2025 Budget development process and establishes the final budget including estimated revenues and appropriations. STAFF CONTACT: Chelsie Walls, Finance Director 4 ATTACHMENTS: Draft Ordinance #24-015 2025 Budget Book, will be available under a separate cover 5 DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 24-015 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2025 THROUGH DECEMBER 31, 2025; APPROPRIATING FUNDS; ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS; AND OTHER MATTERS RELATING THERETO. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least 60 days before the beginning of the City fiscal year beginning January 1, 2025 and ending December 31, 2025; and WHEREAS, the City Manager, in consultation with the Finance Director and department heads, has prepared and placed on file with the City Clerk a preliminary budget, together with an estimate of the amount of money necessary to meet the expenses of the City including payment of outstanding obligations; and WHEREAS, notice was posted and published for public hearings held on September 17, October 15, and November 19, 2024. The City Council met and invited public comment in the City Council Chambers during each public hearing; and WHEREAS, proper notice was given and the preliminary budget was filed with the City Clerk October 8, 2024; and WHEREAS, the City Council desires to adopt the 2025 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2024 for collection in 2025, will be $14,081,000, which represents a 0% increase in the 2025 levy. This levy is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred, and refunds made. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2025 Budget. The budget for the City of Spokane Valley for the year 2025 is adopted at the fund level. The final budget for 2025 is attached hereto, and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes, the total estimated appropriations for each separate fund, plus the aggregate total for all such funds, is set forth as follows: Ordinance 24-015 Adopting 2025 Budget Page 1 of 3 DRAFT EstimatedEstimated BeginningEnding FundFundTotalFund Annual Appropriation FundsNo.BalanceRevenuesSourcesAppropriationsBalance General Fund00138,854,88863,655,30064,767,74464,767,74437,742,444 Street Fund1014,068,6819,362,90013,431,5819,250,0854,181,496 Paths & Trails Fund10357,82010,30068,120068,120 Hotel/Motel Tax - Tourism Facilities Fund1042,018,390790,0002,808,39002,808,390 Hotel/Motel Tax Fund105228,031920,0001,148,031923,000225,031 Solid Waste1061,194,636320,0001,514,636119,2891,395,347 PEG Fund107230,91160,000290,91173,000217,911 Affordable & Supportive Housing Sales Tax Fun1081,008,632215,0001,223,63201,223,632 Tourism Promotion Area Fund109300,7401,300,0001,600,7401,275,000325,740 Homeless Housing Program Fund110126,547290,000416,547344,00072,547 Transportation Benefit District Fund11102,785,0002,785,0002,785,0000 CenterPlace Operating Reserve Fund120300,0000300,0000300,000 Service Level Stabilization Fund1216,339,854288,0006,627,85406,627,854 Winter Weather Reserve Fund122554,56815,000569,568500,00069,568 LTGO Bond Debt Service Fund2040970,950970,950970,9500 REET 1 Capital Projects Fund3015,382,1271,700,0007,082,1271,728,1505,353,977 REET 2 Capital Projects Fund3024,585,8091,775,0006,360,8091,891,9504,468,859 Street Capital Projects3031,969,3556,488,6458,458,0006,488,6451,969,355 Park Capital Projects Fund309292,7581,861,7612,154,5191,861,761292,758 Civic Facilities Capital Projects Fund31020,4741,20021,674021,674 Pavement Preservation Fund3112,178,1443,888,4116,066,5552,050,0004,016,555 Capital Reserve Fund31212,508,315650,00013,158,3154,990,1238,168,192 Railroad Grade Separation Projects Fund314346,49441,241,19741,587,69141,241,197346,494 Transportation Impact Fees Fund3151,437,793430,0001,867,79301,867,793 Economic Development Capital Projects Fund31600000 84,004,967139,018,664185,281,187141,259,89481,763,737 EstimatedEstimated BeginningEnding FundWorkingTotalWorking Working Capital FundsNo.CapitalRevenuesSourcesAppropriationsCapital Stormwater Management Fund4023,552,8196,260,0009,812,8195,692,8214,119,998 Aquifer Protection Area Fund4031,055,24820,0001,075,2481,000,00075,248 Equipment Rental & Replacement Fund5011,164,922579,7001,744,622185,0001,559,622 Risk Management Fund502340,325904,8001,245,125900,000345,125 Public Safety Equipment Replacement Fund5031,473,722473,7221,947,44401,947,444 Passthrough Fees & Taxes6320600,000600,000600,0000 7,587,0368,838,22216,425,2588,377,8218,047,437 Total of all Funds91,592,003147,856,886201,706,445149,637,71589,811,174 The total balance of all funds appropriated for 2025 is $149,637,715. Section 2. Transmittal of Budget. A complete copy of the budget as adopted, together with a copy of this Ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. Ordinance 24-015 Adopting 2025 Budget Page 2 of 3 DRAFT PASSED by the City Council this day of November, 2024. Pam Haley, Mayor ATTEST: Marci Patterson, City Clerk Approved As To Form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 24-015 Adopting 2025 Budget Page 3 of 3 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 29, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation AGENDA ITEM TITLE: Motion Consideration: Holiday City Hall Closure BACKGROUND: The regularly scheduled Christmas Day Holiday is on Wednesday this year. The proposed closures listed will not affect snow plowing or police operations, as it will only affect normal administrative functions of the City. All pre-planned events at CenterPlace will take place as scheduled. OPTIONS: Council discretion RECOMMENDED ACTION OR MOTION: I move to authorize the closure of City Hall and CenterPlace at noon Wednesday, November 27, 2024; and the entire day on Tuesday, December 24, 2024; to allow staff time to prepare and travel for their Thanksgiving and Christmas Holidays. BUDGET/FINANCIAL IMPACTS: None anticipated. There would be no loss of compensation for employees on the proposed dates. STAFF CONTACT: John Whitehead, HR Director ATTACHMENTS: None CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 29, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. report pending legislationexecutive session AGENDA ITEM TITLE: Motion Consideration: Comments re Caseload Standards for Indigent Defense GOVERNING LEGISLATION: Sixth Amendment to the United States Constitution; Criminal Rules for Courts of Limited Jurisdiction CrRLJ 3.1 Stds.; Washington State Bar Association Standards for Indigent Defense Services (March 4, 2024); General Rule (GR) 9 Supreme Court Rulemaking; chapter 1.17A Spokane County Code (SCC) PREVIOUS COUNCIL ACTION TAKEN: Interlocal Agreement 06-018, Adopted February 28, 2006; Resolution 15-006 Adopting Caseload Standards, Authorized July 14, 2015; Amendment 06-018.01 Adding Investigative Support, Adopted August 29, 2017; Administrative Report April 30, 2024; Informational Item May 21, 2024; Administration Report October 22, 2024. BACKGROUND: The Sixth Amendment to the United States Constitution guarantees “the poor not just an appointment of counsel, but also effective assistance of counsel.” State v. A.N.J., 168 Wash. 2d 91, 98, 225 P.3d 956, 959 (2010) (citing Strickland v. Washington, 466 U.S. 668, 688, 104 S.Ct. 2052, 80 L.Ed.2d 674 (1984)). In order to meet Constitutional requirements, the Washington State Supreme Court has adopted enforceable standards for the provision of indigent defense. Those standards were adopted in 2012 and set qualifications of attorneys for different types of cases. Currently, public defenders representing those accused of misdemeanors must meet a variety of standards, which include meeting the minimum requirements to practice law in the state of Washington, being familiar with WSBA guidelines for public defense, court rules, the Washington Rules of Professional Conduct, and mental health issues, along with completing seven hours of continuing legal education relating to public defense. Further, the standards set the maximum number of cases depending on a public defender’s caseload type. An attorney representing misdemeanor defendants may not take more than 400 cases per 12-month period. In early March, 2024, the Washington State Bar Association (“WSBA”) adopted updated standards for public defense pursuant to RCW 10.101.030. Pursuant to RCW 10.101.030, the WSBA Standards serve as guidelines for local agencies in developing their own local standards for public defense. Since March, the Washington State Supreme Court has been taking public comment and is considering adopting them as rules for all public defense attorneys. The standards adopted by the WSBA significantly change the types and number of cases public defenders may carry each year, and would significantly increase the number of required public defenders, investigators, and mitigation specialists (e.g., case workers). On April 30,2024, staff provided an update on the impacts of the proposed new standards to the City and City Council provided consensus to provide comments to the Washington State Supreme Court as it considered the proposed standards. However, the Washington State Supreme Court determined to open a comment period through October 31, 2024 which included one public hearing during the comment period on September 25, 2024, and one public meeting after the comment period. In order to provide full comments, the City has undertaken a significant review of the national study that was identified by the WSBA as the basis for the new standards, reviewed and identified information about the current status of public defense as it pertains to misdemeanor offenses in Spokane County by the City’s contracted public defenders, and has reviewed comments submitted to date by groups in support and opposed to the new standards to provide rebuttal where appropriate and additional support to those making comments that the City agrees with. Background – Impacts from New Public Defense Caseload Standards. Detailed information about the changes and the impacts are in the RCA provided on April 30, 2024. Generally, the new standards change how caseload will be considered for public defenders and will have the effect of significantly reducing the number of cases that public defense attorneys may handle. These standards are based on assumptions about the amount of time different cases take that stem from a recent national study. If adopted by the Washington State Supreme Court, the new standards will reduce the misdemeanor caseload to 120 cases, which would generally require three times the number of attorneys than are currently employed. In addition to increased public defenders, the standards would also have the effect of requiring additional other support staff, including Public Defense Investigators, Paralegals, and Mitigation Specialists. The County currently employs Paralegals and Investigators. Mitigation Specialists represent an entirely new position to the County. The required addition of public defense attorneys, investigators, paralegals, and mitigation specialists would have a significant impact on the City’s budget, with the total impact estimated to range from $1.8 million to $2.7 million, which covers pay ranges for the affected positions. To put these impacts in perspective, the 2024 budget for public defense is approximately $920,000. Comments Received To Date To date, several hundred written comments have been provided to the Washington State Supreme Court. Further, at its lone public hearing on September 25, 2024, the Supreme Court invited public testimony from seven high level stakeholders including the Washington State Association of Counties, the Association of Washington Cities, the Washington State Bar Association, the Washington State Office of Public Defense, and the Washington Association of Prosecuting Attorneys. Below are some of the general categories of comments received to date from proponents of the standards: Workload is causing public defenders to leave the profession in greater numbers Workload is causing fewer attorneys to consider entering the profession Workload is causing ineffective representation of indigent clients Statewide attorney workload data is unreliable and national workload study is the only option Below are some of the general categories of comments received to date from opponents of the standards: There aren’t enough attorneys available in the State to meet the increased hiring requirements In order to comply with the standards communities would likely need to decriminalize certain cases The problem is incorrectly diagnosed as a Statewide issue requiring a statewide response The national study utilizes a method that is based on opinion, negotiation, and estimates, rather than quantifiable data from Washington Must order a statewide study which captures the vast variety of public defense conditions throughout the state e.g. looking at west-side, east side, urban, rural, contract attorney systems vs. dedicated public defense agencies (which includes the Spokane County Office of Public Defense), as well as crime level-felony vs. misdemeanor The cost impact is too severe, and the phase-in window is too short Notably, the Supreme Court identified at the public hearing that it wished to hear additional comments representing positions not already provided in the testimony given at the September 25 hearing. With that consideration, staff have identified several other issues that we believe should be highlighted for the Supreme Court. Considerations of the Proposed Caseload Standards While the City respects and agrees with the need for indigent defendants to receive effective assistance of counsel, City staff are skeptical that the WSBA and Supreme Court have identified that effective assistance of counsel is not being provided at the Constitutionally required level statewide. Rather, the process has indicated an assumption that there is an issue because some local agencies are struggling with vacancies and staffing, leading to overworked attorneys in those agencies. This, according to the WSBA, is the basis for needing changes to the standards to ensure attorneys are not overworked. However, this does not actually demonstrate a statewide deficiency requiring such broad changes that will impact all agencies, including those without staffing or workload issues. That is the case in Spokane County, as the Spokane County Public Defender’s Office has indicated it anticipates being fully staffed in October. Further, there does not appear to be evidence of statewide issues in the effectiveness of public defense. For example, in Spokane County, there is no evidence of any bar complaints about Spokane County public defenders in the last 10 years. There is no evidence that Spokane County public defenders have not been able to provide required certifications that they are meeting the currently adopted caseload standards. The primary evidence that WSBA has relied upon is a national study (the “RAND Study”), which utilized a method of 33 attorneys estimating, opining, and negotiating what they believed should be appropriate time periods for various crimes. These attorneys did not conduct direct analysis of Washington, nor did they even conduct direct study themselves. Rather, they relied upon studies completed by 17 states, including Idaho. The RAND Study also articulates that while it provides estimates of time for working various cases, each state should conduct its own study to address unique aspects to their systems, criminal laws, and methods of providing public defense. The Office of Public Defense, which is a state agency acting on behalf of the Supreme Court, acknowledged this to be a proper process, as it requested state funding to conduct just such a study this year. Again, the RAND Study does not identify any constitutional deficiency occurring within any part of Washington, let alone all of Washington, in any manner that justifies the proposed standards. Staff have crafted a draft letter for Council consideration to provide to the Washington State Supreme Court. Fundamentally, the letter identifies these issues as they pertain to misdemeanor cases and identifies that the proper solution is to actually conduct a state study to first identify if there is an issue statewide with constitutionally required public defense that would then be used to guide local agencies in establishing appropriate caseloads and staffing. City Council provided comments on the draft letter at the administrative report on October 22, 2024. Considering those comments, staff revised the letter and provided an updated draft for tonight’s motion. Staff is asking Council to move to finalize and send the letter as is or with additional changes discussed tonight. The comments are due to the Washington State Supreme Court by October 31, 2024. OPTIONS: 1) Move to approve the City’s comment letter related to the proposed changes to the standards for indigent defense and finalize the same for sending to the Washington State Supreme Court; or 2) take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: 1) I move to approve the City’s comment letter related to the proposed changes to the standards for indigent defense and finalize the same for sending to the Washington State Supreme Court. BUDGET/FINANCIAL IMPACTS: If the proposed caseload standards are adopted by the State Supreme Court, the estimated impact to the City of Spokane Valley ranges from $1.8 million to $2.7 million. STAFF CONTACT: Erik Lamb, Deputy City Manager; Morgan Koudelka, Senior Administrative Analyst; Tony Beattie, Senior Deputy City Attorney. ___________________________________________________________________________ ATTACHMENTS: 1) Draft Letter from City to Washington State Supreme Court 10210 E Sprague Avenue Spokane Valley WA 99206 Phone: (509) 720-5000 Fax: (509) 720-5075 www.spokanevalleywa.gov Email: cityhall@spokanevalleywa.gov October 30, 2024 Washington State Supreme Court PO Box 40929 Olympia, WA 98504Sent via email to: supreme@courts.wa.gov Re:Comments to proposed changes to the Washington State Supreme Court’s adopted Standards for Indigent Defense Dear Honorable Justices: The City of Spokane Valleyvalues the work of public defenders, and acknowledges their tireless efforts to protect the rights of the accused. While the City is sensitive to specific issues faced by jurisdictions tasked with public defense at the felony level, the City is responsible for providing public defense for misdemeanor and gross misdemeanor crimes, and this letter will focus on that area. The standards as adopted in 2012 exist to ensure base elements of effective representation across the State. In order to adopt these proposed standards, the City believes there needs to be evidence that: a) there is a crisis in vacancies of public defender positions across the state leading to unmanageable caseloads;or, b) the standards themselves do not do enough toguarantee a defendant’s right to counsel enshrined in the Sixth Amendment. Neither of these contentions have been clearly identified to be a state-wide issue requiring the proposed drastic changes to the standards governing public defenders. Neitherthe WSBA nor the National Public Defense Workload Study by the RAND Corporation (“RAND Study”), identified as the primary basis for the proposed standards, has clearly looked at quantifiable data for such issues in Washington. The Supreme Court should not adopt any changes to the standards until an appropriate Washington- centric study and analysis is completed on these points. There is no evidence that there is a crisis of vacancies or quality representation throughout the state. Commenters in support of the proposed changes cite difficulties in hiring and retaining public defenders. No one disputes that it is difficult to retain any member of the criminal justice system. For instance, it is well-documented that cities and counties across the state are struggling to fill vacant positions for police officers, often competing with one another for the few available applicants, and offering historic hiring and retention bonuses. The City has made tremendous strides in filling vacant police officer positions utilizing higher pay, hiring bonuses, lowering barriers to become an officer, and utilizing schedules and benefits to enhance officer work/life balance. In those agencies where public defender recruitment and retention may be an issue,these tools would also be effective at filling public defender vacancies.Additionally, public defense attorneys qualify for loan forgiveness after ten years of making payments, but there are opportunities for expanding loan forgiveness or even loan payments to enhance recruitment and retention of public defenders. These types of solutions are legislative issues and ones that the Washington Legislature and OPD should consider, promote, and support as appropriate. However, it does not appear that this issue, specifically related to public defenders,is pervasive across the state, or common among any number of jurisdictions. For example, the Cityof Spokane Valleyhas not experienced this level of alarm when it comes to hiring and retaining public defenders. The Cityof Spokane Valleycurrently contracts with Spokane County for public defense. As ofOctober2024, the Spokane County, Public Defender’s Office hada fully staffed group of misdemeanor attorneys. That said, the proposed caseloads will createapproximately 23 more misdemeanor attorney vacancies, 12.5 investigatorsvacancies, 14 new mitigation specialist or social worker vacancies, and 8.5 paralegalsvacancies. Given the significant investment that will be required to meet these requirements, local agencies such as Spokane Valleywillhave to forego funding in other areas of the criminal justice system. This will create further crises throughout the entire system. Without a corresponding increase in prosecutors, prosecutors will be forced to dismiss or forego filing cases, effectively leading to the decriminalization ofmanymisdemeanors and gross misdemeanors. There is no evidence that publicdefenders are failing to provide constitutionally required representation. Upon reviewing the discipline notices published on the WSBA website, there does not appear to be one public disciplinary notice concerningany of the Spokane County public defenders in the last 10 years. Further, no complaintshavebeen provided that have not been addressed as required by RCW 10.101.030 and Spokane County Code 1 (“SCC”) 1.17A.160. Additionally, the City of Spokane Valley is not aware of any situation where public defenders have failed to sign certifications of compliance under the current standards. Other comments submittedby other jurisdictionsindicate similar 2 experiences. If there are issues in certain jurisdictions with hiring and retaining public defenders,or isolated crises of constitutional magnitude,such a local issue should not be resolved at the state level in a way that creates an issuefor nearly every other jurisdiction statewide, especially for those agencies like Spokane Valley that are not currently experiencing such problems. 1 SCC 1.17A.060 provides “The public defender’s office and counsel for defense shall promptly respond to clients who make complaints and should keep a written record of the complaints and the response.” 2 See, e.g., Comments from the City of Kent, October 8, 2024. In order to determine whether such an issue exists in the first place, an appropriate study is necessary. Such a study can be done in short order because a significant amount of necessary data is already available. The RAND Study is not the appropriate study to rely on for Washington The RAND Study, on which theproposedstandards are based, concludes that the problem with excessive caseloads is that they do not allow public defenders to “give appropriate time and attention to each client,” which results in less than full 3 investigations, unfiled motions, and poor representation. Yet, other than rare anecdotal evidence, no data was presented by the WSBA that these concerns are a pervasive trend in Washington. Critically, neither the WSBA proposed standards nor the RAND Study considersthe effect on an attorney’s time per case when adding all of the new support staff thecurrent proposal requires. Adding support staff should greatly reduce the average time dedicated to each case. The proposedcaseloadlimitsalsodo not take into account that the ultimate decision to resolve a case or go to trial remains with the defendant.RPC 1.2. Formisdemeanors, the consequences of the pending charge may be worse than any result. The choice to sit in jail, or show up to another pretrial hearing when thedefendantcould lose their job, their housing, or their children, is the choice of the client. The caseload standards as proposed, and the RAND Study, simply ignore theseand other realities. Ultimately, the WSBA’s recommendations fail to heed the warning of the RAND Study on which these changes are based: “\[t\]o use this study effectively, jurisdictions should begin by gathering basic data on their providers’ caseloads and attorney hours available and then go through the process…to assess whether attorney staffing levels are 4 appropriate and establish standards, limits, or review processes to avoid overload.” The WSBA provides no state-specific evidence supporting the contention that constitutionally deficient representation is prevalent, nor any data to support the specifics recommended in this overhaul. Utilizing a methodology based on anecdotal evidence and guestimates from out-of-state attorneys is inappropriate by the RAND Study’s own admission. The City proposes a statewide study because there is lack of consensus on not only the source of theissue, but whether an issue exists in the first place, and because the necessary data is available. What follows is a short, non-inclusive list of valuable information that the WSBA, and the Office of Public Defense (OPD) currently has access to: 3 RAND Study at xv. 4 Id. (emphasis added). The WSBA’s Office of Disciplinary Counsel reviews grievances filed against attorneys, yet there is no historical evidence presented of grievances filed against public defenders, let alone an increase since the original SID were adopted in 5 2012. The number of attorneys who refused to certify to the court that they were 6 meeting the current Court promulgated standards. Previous WSBA Standard Eight: “The legal representation plan shall require that the defense attorney or office maintain a case-reporting and management information system which includes number and type of cases, attorney hours and disposition.This information shall be provided regularly to the Contracting Authority and shall also be made available to the Office of the Administrator of the Courts. Any such system shall be maintained independently from client files 7 so as to disclose no privileged information.” 8 The number and type of complaints lodged against public defenders. A simple search of the clerk’s office in any jurisdiction could provide data related to the number of continuances granted for each type of case and the reasons for those continuances. All of this information is critical to understanding whether a crisis of constitutionally deficient representationactually exists in Washington. If such a crisis does exist, further study of the available data would inform appropriate solutions, whether that be amendmentsto the standards, the way in which specific local jurisdictions provide the required services, or other recommendations potentially whollyunrelated to public defense, such as the effect ofalternative case resolutionsor increased sentenceson the number of certain casesfiled in each jurisdiction. Successful outcomes resulting in rehabilitation andlow recidivism means less need for public defenders. However, until the study is complete, we just do not have the information necessary to make such an assessment. The Judicial Branch’s own OPD admits and requested sucha state-specific study in order to fully inform any statewide solution. In its 2024 supplemental budget request, OPD responsibly proposed: 5 Out of 37 WSBA published discipline notices in 2023, only one attorney appears to have been reprimanded for representation related to a criminal matter. The remainder of the discipline was largely for reciprocal discipline taken by another state’s bar association, converting client funds to personal use, trust management violations, and failure to communicate with clients and exercise diligence regarding various family law or other civil cases. 6 These are filed quarterly and are available at every public defense office. 7 Many jurisdictions adopt the WSBA Standards for Indigent Defense by reference or specifically require the maintenance of attorney activity or time records consistent with Standard Eight. For example: City of Spokane Municipal Code 03.11.010; King County Code 2.60.026; Whatcom County Code 2.09.070; Thurston County Code 10.100.080; Renton Municipal Code 3-1-6; see also SCC 1.17A.090 (explicitly requiring the same reporting). 8 RCW 10.101.030 requires standards to include “reports of attorney activity”, and “disposition of client complaints.”Again, manyjurisdictions, in order to comply with these requirements in state statute, specifically adopted the WSBA standards, or reiterated the same through their own code language. See SCC 1.17A.160 (“The public defender’s office and counsel for defense shall promptly respond to clients who make complaints and should keep a written record of the complaints and the response.”) \[O\]ne-time funding to contract with an independent subject-matter expert organization to conduct a statewide evaluation of county and city public defense services. Using an objective perspective founded in state and national public defense standards and an understanding of public defense systems in other states, the selected organization will take a ‘deep dive’ look into a sample of representative jurisdictions in Washington…. At the conclusion of the evaluation the organization will submit a report to the Legislature identifying current barriers to effective representation, and will recommend local government and state government solutions for effective 9 strategies to ensure constitutionally sufficient services. And, as recent as September 24, 2024, OPD again acknowledged the need for a study: There is no consensus amongst the defense community about the problems in public defense…because of all the differences between 39 counties and 200 cities, each location is structured completely differently. You get, um, defense directors right now that say, hey, we really don’t need anything, we’re doing okay, except for maybe recruiting, whereas I would have 10 completely different view based on my experiences. Washington is similarly situated as the seventeen other states, including Idaho, which conducted state-focusedstudies cited by the RAND Study. They faced similar challenges, but all found a way to complete a study. As stated above, WSBA and OPD have the information available to evaluate whether a problem exists throughout Washington. Until evidence of a crisis of constitutional magnitude across the state is presented,local jurisdictions should retain control over the services they provide within the confines of the current standards. Finally, the City recommends theCourt consider adopting, in some form, proposed Standards 8, 11, and 15. These standards were previously reserved by the Court, and present an opportunitytoenhance data collection and support for public defense attorneys while a study is conducted. Sucha measured approach speaks to concerns of both proponents and opponents of the WSBA proposed rulesby shining a light on the state of public defense services, and allowing cities and counties to tailor support for public defenders based on the unique circumstances of their local jurisdiction. CITY OF SPOKANE VALLEY Pam Haley, Mayor 9 See “Washington State Judicial Branch 2024 Supplemental Budget.” 10 See, House Civil Rights & Judiciary Committee, September 24, 2024, at https://tvw.org/video/house- civil-rights-judiciary-2024091187/at 48:57. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: Oct. 29. 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:2025 TPA Budget & Work Plan –Consultant Scopeand Fee Proposals GOVERNING LEGISLATION: Chapter 3.21 SVMC, RCW 35.101 PREVIOUS COUNCIL ACTION TAKEN: On Aug. 15, 2024, city staff proposed to the Hotel Commission a 2025 TPA budget of $1,275,000 based on projected tourism travel and historical revenue generation. City staff also proposed the 2025 Work Plan incorporate existing contracts with 116 & West and Spokane Sports in 2025 (with new scope and fees) to implement TPA programs and services. The Commission recommended that City Council approve the proposed 2025 TPA Budget and Work Plan. On Sept. 3, 2024, City Council heard a recommendation from city staff to utilize a 2025 TPA budget of $1,275,000 and 2025 Work Plan to renew existing contracts with 116 & West and Spokane Sports (with new scope and fees) to implement TPA programs and services. By consensus, Council recommended a motion consideration move forward. On Sept. 10, 2024, Council approved a 2025 TPA budget of $1,275,000 and 2025 Work Plan to renew existing contracts with 116 & West and Spokane Sports (with new scope and fees) to implement TPA programs and services. On Sept. 19, 2024, the TPA Commission heard a presentation from Spokane Sports to utilize $400,000 in 2025 TPA funding for sports recruitment and marketing. The Commission unanimously approved a recommendation that City Council authorize the allocation of up to $400,000 in TPA revenue in 2025 to Spokane Sports for sports recruitment and marketing services. On Oct. 17, 2024, the TPA Commission heard a presentation from 116 & West to utilize $875,000 in 2025 TPA funding for destination marketing. The Commission unanimously approved a recommendation that City Council authorize the allocation of up to $875,000 in TPA revenue in 2025 to 116 & West for destination marketing services. BACKGROUND: City Council approved a 2025 TPA budget of $1,275,000 and 2025 Work Plan to renew existing contracts with 116 & West and Spokane Sports (with new 2025 scope and fees for services) on Sept. 10, 2024. The recommended 2025 TPA budget of $1,275,000 was based on projected tourism travel and historical revenue generation. In the Sept. 10 presentation to Council, city staff indicated that the TPA Hotel Commission would hear proposals for 2025 scope and fees from the two consultants that provide TPA-related marketing services – 116 & West and Spokane Sports – at its September and October meetings, and city staff would bring forth the TPA Commission’s recommendations to City Council in late October. The TPA Commission heard a proposal on Sept. 19, 2024,from Spokane Sports to utilize $400,000 in 2025 TPA funds in 2025 for sports recruitment and marketing. The Commission recommended that City Council approve the allocation of this funding. The TPA Commission heard a proposal on Oct. 17, 2024, from 116 & West to utilize $875,000 in 2025 TPA funds for tourism and destination marketing services. The TPA Commission recommended that City Council approve the allocation of this funding. Should City Council approve these proposed 2025 expenditures for TPA-related marketing services, city staff will need time to complete amendments before Dec. 31, 2024, to extend the existing contracts with 116 & West and Spokane Sports through Dec. 31, 2025. OPTIONS: Consensus for staff to bring forth a motion to authorize the City Manager or his designee to utilize 2025 TPA revenue to execute a contract amendment up to $875,000 with 116 & West for 2025 destination marketing services, and a contract amendment up to $400,000 with Spokane Sports for 2025 sports recruitment and marketing services, or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: Consensus for staff to bring forth a motion to authorize the City Manager or his designee to utilize 2025 TPA revenue to execute a contract amendment up to $875,000 with 116 & West for 2025 destination marketing services, and a contract amendment up to $400,000 with Spokane Sports for 2025 sports recruitment and marketing services BUDGET/FINANCIAL IMPACTS: Funding $1,275,000 to support TPA programs in year 2025 from TPA Fund #109. The city’s Finance Department is projecting TPA revenues of $1,300,000 in the city’s 2025 Budget, but recommends limiting allocated expenditures to $1,275,000. A reserve of $325,000 will be maintained for cash flow purposes. These amounts are consistent with the draft 2025 Budget worksheets presented to City Council by the Finance Director. STAFF CONTACT: Lesli Brassfield, Tourism and Marketing Manager ATTACHMENTS: PowerPoint Presentation 2025 TPA Budget and Work Plan SPOKANE SPORTS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 29, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE: Admin Report: Homeless Program Update GOVERNING LEGISLATION: Substitute Senate Bill 5386 (amending document recording fee statutes in 2023); requirements for adopting a local plan RCW 43.185C.050, RCW 43.185C.080, RCW 43.185C.160; Affordable and Supportive Housing Sales and Use Tax Credit RCW 82.14.540; Chapter 3.06 SVMC; and Resolution No. 23-009. PREVIOUS COUNCIL ACTION TAKEN: July 25, 2023, City Council adopted Resolution No. 23- 009 to assume control over document recording fees and to establish a homeless housing program. August 22, 2023, Administrative report discussing regional homeless housing plan. September 12, 2023. Motion consideration on May 28, 2024 to award homeless outreach contract to Frontier Behavioral Health. BACKGROUND: In 2024, the county-wide Point In Time (PIT) count was conducted from January 22-27. The PIT counts all persons staying in shelters, transitional housing, and those living on the streets. The 2024 PIT found a decrease from 2,390 individuals in 2023, to 2,021 individuals in 2024, a 15% decrease overall. The 2024 count found a decrease of unsheltered homelessness (54% decrease), and an increase in sheltered homelessness (10% increase). With continued financial pressure on low-earning households, combined with recent reductions in shelter bed space across the entire homeless response system, we expect that the number of households experiencing housing instability and homelessness will rise based on the following factors: Central Valley School District’s School social worker has already identified 215 students who fit the McKinney-Vento Act’s definition of homelessness this school year, which includes households that are doubled-up, couch surfing, staying in a hotel. etc. In comparison, Central Valley identified 449 students that meet this definition of homeless in the entire 2023-2024 school year. Partners Inland Northwest now serves approximately 185 households each day at their foodbank. Of those, they see an average of 17 new households that they have not served before each day. Family Promise is serving households from Spokane Valley that are on average about 30% larger than the households they serve from outside Spokane Valley. Housing these families is hampered by low vacancy rates, particularly for households that require 3-4 bedroom units. The H&H Coordinator and Homeless Outreach Team are regularly fielding calls form desperate parents who are living in vehicles with children, seniors who are facing eviction after rental increases outpaced their social security income, and women remaining in dangerous situations because they are unable to find other viable housing options. Housing affordability continues to impact many Spokane Valley households. This includes households that are employed (7.8% of all those we have surveyed), and those receiving social security income (14.9% of all those we have surveyed). Page 1 of 3 Fentanyl continues to ravage many parts of the community, including playing a significant role in many of the more visible and resource-intensive homelessness-related incidents that are encountered. The highly addictive nature of fentanyl also has implications for clients’ willingness or ability to voluntarily enter treatment. Spokane’s regional shelter system is contracting, with significant reduction of beds across multiple shelter providers. The TRAC shelter is closing at the end of October, which will result in a loss of 250-350 low-barrier beds. Family Promise and the House of Charity have also seen significant reductions in bed space recently. Currently there are no shelters for single adults who are with a partner of the opposite sex, or who have a pet. Further, the only low-barrier shelter for men that is available (Truth Ministries) is nighttime-only. Just recently, the region indefinitely paused distribution of any future federally-funded Housing Choice Vouchers. These vouchers are used by 19 different area agencies to place families, people with disabilities, seniors, and others who are either homeless or at risk of homelessness into long-term housing. Because vouchers are tied to local market rates, the cost of maintaining existing vouchers increases when rental costs increase. Family Promise has housed five households (15-20 people) each month with these vouchers, and YWCA has housed 38 domestic violence survivors/households with these vouchers so for this year. 41% of all voucher recipients nation-wide are children. Upcoming inclement weather. HOMELESS OUTREACH TEAM The City of Spokane Valley’s homeless outreach team consists of a dedicated Homeless Outreach Officer who works directly with homeless outreach social workers. The outreach team is in daily contact with the Housing & Homeless (H&H) Coordinator, who serves as a point of contact for community members and coordinates the city’s response to community concerns related to homelessness in the city. The outreach team is critical for the city’s ability to respond effectively and efficiently to community concerns. Calls for assistance can come from the City’s “Report A Concern” website and App. Citizens, community partners and businessowners often submit requests by phone and/or email and direct emails/calls/texts to City Hall and Police Department staff. The City receives dozens of requests each week for assistance with homeless-related issues. The outreach team also proactively checks known hot-spots when time allows. Further, after initial contact is made with someone experiencing homelessness, significant follow-up may be required to connect the person with housing and other needed services. On July 1, 2024, the City entered into a one-year contract for homeless outreach services with Frontier Behavioral Health (FBH). In the first months of the contract FBH hired 1.5 FTEs for the case worker positions, trained the new staff, signed a one-year lease agreement with Partners Inland NW for office space at their Spokane Valley location, began coordinating meetings with other area outreach providers to coordinate care for clients, and began using the city’s data collection tools in the field. In June of 2024, the US Supreme Court overturned the Martin v. Boise decision held that the Eighth Amendment’s Cruel and Unusual Punishment Clause does not prohibit the enforcement of generally applicable laws regulating camping on public property. The decision does not impact how the city’s homeless outreach program or requires changes to the municipal code. . . Specifically, a close look was taken at how enforcement of ordinances related to camping and storage of personal items on public property might be effected. Some of the most challenging issues encountered by the outreach teams are: Page 2 of 3 Illegal camping on public properties owned by other government entities (DOT, State Parks, County Parks, DNR) continues to be a challenge for the homeless outreach team. Some of these partner agencies have increased staffing and response in the region. But even with these additional resources, SVPD is often the most responsive and available enforcement agency when dealing with problems inside city limits. With the exception of DOT, no other partner agency has a dedicated cleanup crew, meaning that the City is often in a position where city crews clean up encampments at our expense, or it doesn’t get addressed in a timely manner. Encampments on private property is an ongoing challenge. Private parcels that are known to have active camps, fires, deaths, and uncontrolled hazardous material are spread across the city. In all of these cases, there is no resident on the property, and the parcels are generally large, undeveloped, and owned by absentee owners. Union Pacific Railroad is one of the worst offenders. If activity is not visible from the Right of Way, there is little recourse to address known hazards on these parcels. Lack of any legal space where individuals sleeping in a vehicle can park overnight. The outreach team regularly encounters households in vehicles, including families with children, seniors, employed residents, and others. In cases where people are employed, working with service providers, or vulnerable, the lack of a parking location can result in loosing contact with these households, or lost opportunities for employment, housing, or school attendance. Lack of space at sobering/detox facilities to take individuals to when they accept services. Staff will describe the homeless outreach approach and data collected by the City apps and the homeless outreach team at the council meeting. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: BUDGET/FINANCIAL IMPACTS: The 2024 annual amended budget includes total projected revenues of $290,000 in the Homeless Housing Program Fund #110. The Homeless Outreach Services contract runs June 2025. In the 2025 budget the City anticipates annual local recording revenues of approximately $300,000 in Fund #110. STAFF CONTACT: Eric Robison, Homeless and Housing Coordinator; Josh Pratt, SVPD Homeless Outreach Officer ATTACHMENTS: PowerPoint Presentation Point in Time Count Highlights pdf Page 3 of 3 Background Trends and challenges Trends and challenges, continued Program data and outcomes Homeless Outreach Officer Data Lower utilization of stabilization services in 2023/24 partly due to lack of available : e t o Nspace when people agreed to go, and increased challenges related to fentanyl. Homeless Outreach Officer Outcome Data Frontier Health Behavioral Outcomes CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 29, 2024 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE: Interlocal Agreement re: STA Use Fiberoptic Facilities Owned by the City GOVERNING LEGISLATION: RCW 39.34.080 PREVIOUS COUNCIL ACTION TAKEN: Council previously approved a 10-year ILA for the same purpose with an effective date of July 15, 2014. BACKGROUND: In July of 2014, the City and STA executed an interlocal agreement (ILA) authorizing and defining the terms under which STA is allowed to connect to and use one pair of dark fiber for the purpose of facilitating communication about public transit business by and amongst STA facilities. The original ILA contained a 10-year term that expired on or about July 15, 2024. STA wishes to enter into a new ILA with the City. The proposed ILA is for an additional 10-year term and contains substantially the same terms and conditions as the original ILA. Those terms include STA agreeing to (a) bear all costs to repair and/or maintain its connection to the City’s fiber facilities as well as the City’s fiber facilities that are damaged as a result of STA’s use, (b) pay its pro-rata share of all maintenance costs for any fiber used by STA under the ILA, and (c) indemnify and hold the City harmless for any claim, damage, loss, or injury arising out of the negligent or intentional acts of STA and/or its agents. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Discussion BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Kelly Konkright, City Attorney ___________________________________________________________________________ ATTACHMENTS: Proposed Renewed Interlocal Agreement for STA to use Fiber Facilities Owned by COSV INTERLOCAL AGREEMENT FOR SPOKANE TRANSIT AUTHORITY TO USE FIBER FACILITIES OWNED BY CITY OF SPOKANE VALLEY, AND OTHER MATTERS RELATING THERETO THIS INTERLOCAL AGREEMENT (hereinafter “Agreement”) is between the CITY OF SPOKANE VALLEY, a Washington State municipal corporation, (hereinafter "City”) and SPOKANE TRANSIT AUTHORITY, a Washington State political subdivision and special purpose district (hereinafter "STA"), and jointly referred to as the "Parties." RECITALS: WHEREAS Chapter 39.34 RCW, Interlocal Cooperation Act, permits governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on the basis of mutual advantage to perform functions, and provide services and facilities to each other and the public; and WHEREAS, the City owns fiber infrastructure that STA desires to use for telecommunication purposes th (voice, data, video) at the Pence Cole Valley Transit Center located at the northwest corner of 4Avenue and University Road; WHEREAS, it is in the operational and financial best interest of both Parties for the City to allow STA to utilize one pair (two strands) of dark fiber for the purpose of communicating about transit business with STA’s other facilities; and WHEREAS, the City and STA entered into a 10-year interlocal agreement with an effective date of July 15, 2014, which expired on July 15, 2024, (“Original Interlocal”) and the Parties desire to enter into a new 10-year interlocal agreement with substantially the same terms and conditions as the Original Interlocal; NOW, THEREFORE, the Parties agree as follows: 1. PARTIES A. City of Spokane Valley is a Washington State municipal corporation, referred to herein as "City”, located at 10210 East Sprague Avenue, Spokane Valley, WA 99206. B. Spokane Transit Authority is a Washington State political subdivision and special purpose district known as STA, headquartered at Spokane Transit Administration Facility, 1230 West Boone Avenue, Spokane, Washington. 2. PURPOSE AND RESPONSIBILITIES The purpose of this Interlocal Agreement is to provide the terms under which the City will permit STA to utilize one pair (two strands) of dark fiber for the purpose of STA communicating between the Pence Cole Valley Transit Center (Valley Transit Center) at 4th Avenue and University Road, and STA's other facilities regarding STA business. STA, through its contractor, has previously constructed the connection to the City's fiber facilities at the City's fiber vault (the Vault), which is located in right-of-way in the south side of the Appleway Boulevard corridor adjacent to the Valley Transit Center, as shown in Attachment A. The City fiber used by STA connects the aforementioned Vault (Location A) to the WSDOT Vault located at the Sprague and Interstate 90 interchange (Location B). The City has designated fibers 29-30 of this medium for this purpose. There are no intermediate patches required to be maintained by the City between locations A and B. 3. COSTS A. STA shall pay all costs related to constructing the connection to the City’s fiber facilities from the Vault onto STA property. STA shall pay all costs of repair of said connection that may be required as a result of damage to the Vault not caused by City’s negligence. If the Vault is moved due to a City road capital project, STA will pay the costs related to constructing STA’s new connection of one pair (two strands) of dark fiber to the City’s relocated fiber facilities and fiber vault. B. STA shall pay its pro-rata share of all maintenance costs for any fiber actually used under this agreement. C. STA agrees to reimburse the City within 30 days of mailing of any invoice for such maintenance costs or installation costs incurred by the City. 4. TERM This Agreement shall begin upon signature by both jurisdictions and shall extend 10 years and may be renewed for additional 10 year terms upon written mutual agreement. Either Party may terminate this Agreement for cause or functionality any time upon 180 days prior written Notice. 5. OWNERSHIP OF FACILITIES The City shall continue to own all fiber strands, and STA shall have only a right to use the one pair of dark fiber strands under the terms set forth herein. STA shall own the connection from its facilities at the Valley Transit Center to the Vault. 6. LIABILITY A. The City shall defend, indemnify and hold harmless STA, its officers, employees and agents, from any claim, damage, loss, liability, injury, cost and expense arising out of the negligence or intentional acts of the City, its officers, employees and agents in connection with the Agreement, except to the extent of the negligence or intentional acts of STA, its officers, employees and agents. If an action, claim or proceeding instituted by a third party is directed at work or action taken by the City solely on behalf of STA, its officers, employees and agents, STA shall defend, indemnify and hold harmless the City from any expenses connected with the defense, settlement, or monetary judgment ensuing from such actions, claims, or proceedings. B. STA shall defend, indemnify and hold harmless the City, its officers, employees and agents, from any claim, damage, loss, liability, injury, cost and expense arising out of the negligence or intentional acts of STA, its officers, employees and agents in connection with the Agreement, except to the extent of the negligence or intentional acts of the City, its officers, employees and agents. If an action, claim or proceeding instituted by a third party is directed at work or action taken by STA solely on behalf of the City, its officers, employees and agents, the City shall defend, indemnify and hold harmless STA from any expenses connected with the defense, settlement, or monetary judgment ensuing from such actions, claims, or proceedings. C. Each Party specifically assumes potential liability for actions brought by its own employees against the other Party, and solely for the purposes of this indemnification, each Party specifically waives any immunity under Title 51 RCW. The parties have specifically negotiated this provision. D. In the event STA’s fiber connection to the City’s fiber network is compromised or service lost for whatever reason up to the connection in the Vault, the City is obligated to make reasonable efforts to restore connectivity. In such event, the City shall not be liable to STA for any consequential damages caused by a disruption in service. Any loss of service resulting from damage or other causes from the Vault into STA’s property shall be the responsibility of STA. 7.NOTICES All Notices shall be in writing and served on any of the Parties either personally or by certified mail, return receipt requested, at their respective addresses. Notices sent by certified mail shall be deemed served when deposited in the United States mail, postage prepaid. CITY: City Manager City of Spokane Valley 10210 East Sprague Avenue Spokane Valley, Washington 99206 STA: CEO or designee Spokane Transit Authority 1230 West Boone Avenue Spokane, Washington 99201 8. INSURANCE STA is a member of the Washington State Transit Insurance Pool (Pool) along with 24 other public transit agencies in Washington. STA obtains its insurance coverage from the Pool. The Pool is a public entity enabled by RCW 48.62. It is regulated and overseen by the state Office of Risk Management. The Pool is not a commercial insurer and is not rated. During the course of this contract, STA will maintain coverage from the Pool for auto, general, and public officials liability with limits no less than $10 million per occurrence. STA shall require any contractor or subcontractors working on the City’s facilities or property to obtain and provide proof of insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the contractor, its agents, representatives, employees or subcontractors in the following minimum forms and amounts: 1. Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial general liability insurance shall be written on ISO occurrence form CG 00 01, shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate, and shall cover liability arising from premises, operations, independent contractors and personal injury and advertising injury. City and STA shall be named as an additional insured under contractor’s commercial general liability insurance policy with respect to the work performed for the STA. 3. Workers’ compensation coverage as required by the industrial insurance laws of the State of Washington. STA shall require that contractor’s insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. STA shall also require contractor to fax or send electronically in .pdf format a copy of insurer’s cancellation notice within two business days of receipt to STA. As evidence of the insurance coverage required by this Agreement, STA shall furnish an insurance certificate from its risk pool to the City Clerk at the time STA returns the signed Agreement. The certificate shall specify the amount of coverage and the deduction or retention level. If requested, complete copies of insurance policies shall be provided to City. STA shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance under its policy. 9.MISCELLANEOUS A. Non-Waiver - No waiver by either Party of any of the terms of this Agreement shall be construed as a waiver of the same or other rights of that party in the future. B. Headings - Headings are inserted for convenience of reference only and are not to be deemed part of or to be used in construing this Agreement. C. Entire Agreement - This Agreement contains the entire understanding of the Parties. No representations, promises, or agreements not expressed herein have been made to induce either Party to sign this Agreement. D. Modification - No modification or amendment to this Agreement shall be valid until put in writing and signed with the same formalities as this Agreement. E. Assignment - Neither Party may assign its interest in this Agreement without the express written consent of the other Party. F. Severability - In the event any portion of this Agreement should become invalid or unenforceable, the rest of the Agreement shall remain in full force and effect. G. Compliance with Laws - The Parties shall observe all federal, state and local laws, ordinances and regulations, to the extent that they may be applicable to the terms of this Agreement. H. Non-Discrimination - The Parties shall not discriminate in violation of local, state, or federal law. I. Venue - This Agreement shall be construed under the laws of Washington State. Any action at law, suit in equity or judicial proceeding regarding this Agreement or any provision hereto shall be instituted only in courts of competent jurisdiction within Spokane County, Washington. J. Counterparts - This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original, but such counterparts shall together constitute but one and the same. K. Organization with Separate Entity and Powers - No new or separate legal or administrative entity is created to administer the provisions of this Agreement. Real or personal property acquired for purposes of this Agreement shall be held and disposed of as set forth herein. L. Agreement to be Filed - The City shall file this Agreement with its City Clerk. STA shall file this Agreement with the Spokane County Auditor. M. Financing - Each Party shall be responsible for the financing of its contractual obligations under its normal budgetary process. N. Property Upon Termination - Title to all property acquired by any Party in the performance of this Agreement shall remain with the acquiring Party upon termination of the Agreement. Dated: CITY OF SPOKANE VALLEY By: John Hohman, City Manager Attest: Approved as to form: City ClerkKelly E. Konkright City Attorney Dated: SPOKANE TRANSIT AUTHORITY By: E. Susan Meyer – Chief Executive Officer Attest: Approved as to form: Dana Infalt - Clerk of the AuthorityMegan Clark - Legal Counsel