BRIEFING PAPER City of Spokane Innovation and Technology Services Division July 17, 2017
Subject Contract with AssetWorks for annual support and upgrades of Fleet Services (M-5) Equipment System Software. October 1, 2017 through September 30, 2018 for $75,483.92
Background The City of Spokane has been using Assetworks since 1993 for the M-5 equipment management system. The M-5 equipment system software has been continually enhanced based on the City’s enterprise needs and requirements. The M-5 equipment system software provides Fleet Services with corrections for any defect in the software, unlimited telephone /e-mail support, report writing and all updates and enhancements as they become available.
2017 - $80,519.36
Impact Without this yearly maintenance contract, the Fleet Services (M-5) Equipment System Software used by the City of Spokane would not be supported by the vendor and the City would not be able to benefit from the future enhancements and upgrades.
Action City ITSD recommends approval.
Funding 5300-73300-18850-54820 Software Maintenance
For further information contact: Page 1
AssetWORKS MAINTENANCE RENEWAL 998 Old Eagle School Road I Suite 1215 | Wayne PA 19087-1805 Number 8366 M5 MNf17 Tel (858) 452-0458 Fax (858) 452-0478 TO: City of Spokane FROM: Assetworks LLC DATE: June 23,2017 RE: FleetFocus M5 Maintenance and Support Renewal Prices valid through Septenber 30, 2018 Annual Sofrware Maintenancc and Supoort for period l0rll20l7 - 9r30r2018 FleetFocus M5 $ 58.758.79 Crystalreports $ 1,258.06 FuelFocus software $ 9,361.75 lncludes product updates and enhancemenls, unlimited email and telephone suppod fot 12 rnonths
Subtotal, Cunent Maintenance. not including tax and options $ 69.378 60
OPTIONAL MAINTENANCE BUNDLES Users Conference Admission Quantity @ $'l ,1 50.00/person
Managernent Review Check here to receive a quote Assetworks will perform onsite assessment relating maintenance practic€s to available system functionality to optimize organizational performance. This review will be scheduled at a mutually convenient time
Upgrade Assistance M.000.00 Assetworks will provide technical assistance to your organization to complete the upgrade to the next version This assistance will be scheduled at a mutually convenient time. For details, please contact Assetworks.
For Visa. Mastetcard, and ExDress oavments. add 4o,4 REMIT TO: WA Sales Tax: 8.8000o/o $ 6.105.32 CHECKS Assetworks PO Box202525 GRAND TOTAL DUE, $ US 7tqfi.9? Dallas TX 7532G2525
EFT, ACH, OR DIRECT OEPOSIT US Tax lD # 98-0358175 Wells Fargo, 8601 N. Scottsdale Rd.. Scottsdale AZ 85253 Canada GST/HST # 831113896 RT0001 ABA# 12105274 Account # 5076434348
lf you requirc a sepatate invoice , complete this form and return it by email or fax; Assetworks will issue an invoice as you instruct below. /f your otganization requhes us lo relerence a purchase order number on our invoice , we must receive that PO by email to [email protected] or by fax to (858) 452-0478. Do no, mail POs to ouf rqnitaance adress.
Te]ms This maintenance renewal is issued pursuant to the terms of the current Assetworks contract with your o.ganization- The parties will continue to be bound by those terms during any renewal period unless otherwise agreed by both parties through a signed amendment. Notification of termination ot maintenance is required 90 days prior to annual renewal date. soLE souRcE npprord rloh FleetFocus is proprietary property of Assetworks LLC and protected by law. Anothei iarty cannot alter. modrfy change, manipulate or provide maintenance for this producl without infringing upon Assetworks' ownership righb ingly. Assetworks is the sole source for soffware, mair enance and services of its producG.
I, the undersigned. accept this maintenance renewal as described above. Assist.nt qty ^ltdrpt' Name: Title:
Signature: oale:
I IPO REQUIRED [ ]NO PO REOUTRED I ]WILL PAY BY QUOTE - NO SEPARATE INVOICE NEEDED
[ ] Please MAIL invoice to:
I I Please E-MAIL invoice to: ) lf you have any questions, please contact Kimberly Hamiter at (858) 86S9022 or Kimberly [email protected] Thank YOu! € c uJe6uimb6ny hamite^De*rop\ReMls\ oc1 2017\spokane M5 Fr Mairn Ra€{d clct 2017 Codidennal hlo.frat, BRIEFING PAPER Finance & Technology Committee July 17, 2017
Subject: An ordinance relating to the protection of privacy for cable franchise customers: amending sections 10.27A.040 and 10.27A.730 of the Spokane Municipal Code.
Background: The U.S. Congress voted in early 2017 to overturn Federal Communications Commission rules that would keep internet service providers (ISPs), such as Comcast, Verizon, and CenturyLink from collecting and selling personally identifiable information without the consent of the consumer1. President Trump signed this bill into law. The Spokane City Council President’s Office sought feedback on local options from the City Attorney’s Office with help from outside counsel2, MRSC, and the Washington state Office of Privacy & Data Protection. Each source highlighted the City of Seattle’s efforts to protect consumer privacy through their “Cable Customer Bill of Rights”3. The City of Seattle recently redefined their privacy procedures to include internet services provided by their cable franchisees. All three of the City of Seattle’s cable franchisees (Comcast, Wave, & CenturyLink) noted that Seattle’s new internet privacy rules around internet privacy would not have an impact on them4. Comcast, the City of Spokane’s sole cable franchisee, noted in their March 31, 2017 blog post, “we do not sell our customers’ individuals web browsing information to third parties and we do not share sensitive information unless our customers have affirmatively opted in to allow that to occur” (Lewis 2017).
The City of Spokane has the authority to enact and enforce laws that protect cable subscriber privacy consistent with 47 U.S. Code § 5515. The proposed ordinance will outline specific cable and internet privacy standards for cable franchisees within the City of Spokane’s Cable Communications Code (SMC 10.27A). The proposed ordinance does not apply to internet service providers operating in the City of Spokane that do not have a cable franchise agreement.
Impact: This ordinance does the following:
• Adds and defines the terms “affiliate”, “necessary”, “non-cable-related purpose”, “other service”, and “personally identifiable information”.
• Amends the terms “franchise” and “subscriber”
1 http://www.npr.org/2017/03/28/521831393/congress-overturns-internet-privacy-regulation 2 Moss & Barnett, Memo: Local Regulation of Internet Service Provider Privacy Protections 3 https://www.seattle.gov/tech/services/cable-service/cable-customer-bill-of-rights 4 http://www.seattletimes.com/business/technology/new-seattle-cable-rule-to-protect-internet-data-privacy/ 5 https://www.law.cornell.edu/uscode/text/47/551 For further information, please contact Adam McDaniel, Senior Executive Assistant to the Council President 625-6269 or [email protected].
BRIEFING PAPER Finance & Technology Committee July 17, 2017
• Prohibits the franchisee or any affiliate from using the cable system to collect or monitor personally identifiable information without consent except as authorized under state or federal law.
• Prohibits the franchisee from disclosing personally identifiable information without consent except as authorized under state or federal law.
• Establishes a requirement that subscribers receive a notice in writing a minimum of 30 days before a franchisee discloses personally identifiable information and be given the opportunity to opt-out of this disclosure permanently.
• Establishes a requirement that subscribers receive a notice in writing within 45 days after a franchisee has disclosed personally identifiable information and be given the opportunity to opt-out of future disclosures.
• Requires that all personally identifiable information collected by the franchisee be made available upon request by the subscriber.
• Requires the franchisee to send a privacy statement annually with information on how the subscriber may prohibit the disclosure of personally identifiable information.
• Requires the franchisee to provide the names of the recipients of subscribers’ personally identifiable information when requested by the City.
• Requires the franchisee to immediately destroy any personally identifiable information when the information is no longer needed.
Action: Request Council Approval
Funding: Not Applicable
For further information, please contact Adam McDaniel, Senior Executive Assistant to the Council President 625-6269 or [email protected].
BRIEFING PAPER Finance Committee July 17, 2017
Subject: A resolution opposing the Federal Communications Commission’s proposal, (“Restoring Internet Freedom”), that will roll back the enforcement of net neutrality principles.
Background: Net neutrality is the principle of an open internet where consumers can use the devices of their choice and access the services, content, and applications of their choice without an internet service provider (ISP) blocking, deliberately degrading, prioritizing, or discriminating against the consumer’s choice.1 Without the proactive enforcement of net neutrality rules in place, internet service providers could demand fees from companies and organizations to deliver content to their consumers.
The Federal Communications Commission voted 2-1 on May 18th, 2017 to propose rules to begin modifying or replacing the enforcement of net neutrality rules under the name “Restoring Internet Freedom”
Under the proposed rules, the FCC would reverse the 2015 FCC Open Internet rules that reclassified internet service providers as “common carriers” under Title II of the Communications Act. Common carriers, such as telephone service, carry data traffic without prioritization, discrimination, or interference and can be regulated. 2 Under the proposed rule reversal, internet service providers would be regulated under Title I as an “information service”.
Examples of net neutrality violations are below3:
• MADISON RIVER: In 2005, North Carolina ISP Madison River Communications blocked the voice-over-internet protocol (VOIP) service Vonage. Vonage filed a complaint with the FCC after receiving a slew of customer complaints. The FCC stepped in to sanction Madison River and prevent further blocking, but it lacks the authority to stop this kind of abuse today. • COMCAST: In 2005, the nation’s largest ISP, Comcast, began secretly blocking peer-to-peer technologies that its customers were using over its network. Users of services like BitTorrent and Gnutella were unable to connect to these services. 2007 investigations from the Associated Press, the Electronic Frontier Foundation and others confirmed that Comcast was indeed blocking or slowing file-sharing applications without disclosing this fact to its customers. • TELUS: In 2005, Canada’s second-largest telecommunications company, Telus, began blocking access to a server that hosted a website supporting a labor strike against the company. Researchers at Harvard and the University of
1 Trans Atlantic Consumer Dialogue DOC No. INFOSOC 36-08 Date Issued: March 2008 2 https://www.theverge.com/2017/4/11/15258230/net-neutrality-privacy-ajit-pai-fcc 3 https://www.freepress.net/blog/2017/04/25/net-neutrality-violations-brief-history For further information, please contact Adam McDaniel, Senior Executive Assistant to the Council President 625-6269 or [email protected].
BRIEFING PAPER Finance Committee July 17, 2017
Toronto found that this action resulted in Telus blocking an additional 766 unrelated sites. • AT&T: From 2007–2009, AT&T forced Apple to block Skype and other competing VOIP phone services on the iPhone. The wireless provider wanted to prevent iPhone users from using any application that would allow them to make calls on such “over-the-top” voice services. The Google Voice app received similar treatment from carriers like AT&T when it came on the scene in 2009. • WINDSTREAM: In 2010, Windstream Communications, a DSL provider with more than 1 million customers at the time, copped to hijacking user-search queries made using the Google toolbar within Firefox. Users who believed they had set the browser to the search engine of their choice were redirected to Windstream’s own search portal and results. • MetroPCS: In 2011, MetroPCS, at the time one of the top-five U.S. wireless carriers, announced plans to block streaming video over its 4G network from all sources except YouTube. MetroPCS then threw its weight behind Verizon’s court challenge against the FCC’s 2010 open internet ruling, hoping that rejection of the agency’s authority would allow the company to continue its anti-consumer practices. • PAXFIRE: In 2011, the Electronic Frontier Foundation found that several small ISPs were redirecting search queries via the vendor Paxfire. The ISPs identified in the initial Electronic Frontier Foundation report included Cavalier, Cogent, Frontier, Fuse, DirecPC, RCN and Wide Open West. Paxfire would intercept a person’s search request at Bing and Yahoo and redirect it to another page. By skipping over the search service’s results, the participating ISPs would collect referral fees for delivering users to select websites. • AT&T, SPRINT and VERIZON: From 2011–2013, AT&T, Sprint and Verizon blocked Google Wallet, a mobile-payment system that competed with a similar service called Isis, which all three companies had a stake in developing. • EUROPE: A 2012 report from the Body of European Regulators for Electronic Communications found that violations of Net Neutrality affected at least one in five users in Europe. The report found that blocked or slowed connections to services like VOIP, peer-to-peer technologies, gaming applications and email were commonplace. • VERIZON: In 2012, the FCC caught Verizon Wireless blocking people from using tethering applications on their phones. Verizon had asked Google to remove 11 free tethering applications from the Android marketplace. These applications allowed users to circumvent Verizon’s $20 tethering fee and turn their smartphones into Wi-Fi hot spots. By blocking those applications, Verizon
For further information, please contact Adam McDaniel, Senior Executive Assistant to the Council President 625-6269 or [email protected].
BRIEFING PAPER Finance Committee July 17, 2017
violated a Net Neutrality pledge it made to the FCC as a condition of the 2008 airwaves auction. • AT&T: In 2012, AT&T announced that it would disable the FaceTime video- calling app on its customers’ iPhones unless they subscribed to a more expensive text-and-voice plan. AT&T had one goal in mind: separating customers from more of their money by blocking alternatives to AT&T’s own products. • VERIZON: During oral arguments in Verizon v. FCC in 2013, judges asked whether the phone giant would favor some preferred services, content or sites over others if the court overruled the agency’s existing open internet rules. Verizon counsel Helgi Walker had this to say: “I’m authorized to state from my client today that but for these rules we would be exploring those types of arrangements.” Walker’s admission might have gone unnoticed had she not repeated it on at least five separate occasions during arguments.
Impact: This resolution will be filed, on behalf of the City of Spokane, as opposition to Docket 17-108, “Restoring Internet Freedom4”.
Comprehensive Plan – ED 3.8 Technology-Based Industries: Encourage the development of advanced and emerging technology based industries.
Comprehensive Plan – ED 6.4 Communication Facilities and Networks: Support the expansion and development of sophisticated communication facilities and networks required by industries that use high technology.
Action: Requesting adoption by the City Council
Funding: N/A
4 https://www.fcc.gov/ecfs/filing/05230656804377 For further information, please contact Adam McDaniel, Senior Executive Assistant to the Council President 625-6269 or [email protected].
Briefing Paper City of Spokane Innovation and Technology Services Department Budget Allocation Request July 17, 2017
Subject Authorization to increase funds to upgrade network equipment to improve security, utilizing the Cerium Networks, Inc. Value Blanket (VB300801). Total additional requested: $203,338.55 ($44,727.66 + $158,610.89)
January 1, 2017 through December 31, 2017 $350,000
Background Cerium currently provides network equipment that is compatible with our voices and data application requirements, and security for all City departments. The purpose has been set up to improve efficiencies, service, connectivity and future capacity. This aligns with the City’s standards
2017- $350,000 2016- $350,000
Impact if additional budget allocation not approved Without this yearly approval to purchase, the ITSD Department would be required to bring any purchase over the city Purchase limit ($49,000) to City Council for Approval for each piece of equipment purchased.
Funding (if available) Various Accounts
RESOLUTION NO. 2017-_____
A Resolution amending the City Council’s rules of procedure to prohibit the use of the open public forum for the support of or opposition to ballot measures or candidates for elective office.
WHEREAS, the City Council has the authority and the duty to ensure the efficient conduct of the City’s business at City Council meetings; and
WHEREAS, to help accomplish City business, the City Council has established an open public forum, which is a limited public forum, and in which residents of Spokane may address the City Council on matters related to the affairs of the City; and
WHEREAS, under long-established law, the City Council has the authority to institute restrictions on the content of speech in the open public forum so as to ensure the efficient transaction of City business, “as long as content-based regulations are viewpoint neutral and enforced that way,” Norse v. City of Santa Cruz, 629 F.3d 966, 975 (9th Cir. 2010); and
WHEREAS, state law prohibits the City Council from allowing the use of its public meeting facility for campaign communications of any kind, including, without limitation, making campaign speeches, wearing campaign clothing, hats, or buttons, or displaying campaign signs, during Council meetings; and
WHEREAS, the City Council intends to ensure that its rules of procedure comply fully with state law by amending them in accordance with Rule 1.5, which requires that amendments to the rules of procedure are to be accomplished by Council resolution.
NOW, THEREFORE, BE IT RESOLVED that Rule 2.2.4 of the Spokane City Council’s Rules of Procedure is amended as follows:
2.2.4 The open forum is a limited public forum and ((all matters discussed)) shall be used solely to discuss issues ((relate))related to affairs of the City. Specifically:
A. No person may use the open forum to speak on such matters and in such a manner as to violate the laws governing the conduct of municipal affairs. B. No person shall be permitted to speak on matters related to the current or advance agendas, or potential or pending hearing items. C. No person shall be permitted to speak concerning any ballot measure or ((propositions for a pending election))proposition or in favor of or in opposition to any candidate for any elective office. D. No person shall be permitted, during City Council meetings, to wear or display any campaign material of any kind, including without limitation,
1
clothing, hats, buttons, or signs in support of or in opposition to any ballot measure or proposition or any candidate or any elective office. E. Individuals speaking during the open forum shall address their comments to the Council President and shall not make personal comment or verbal insults about any individual.
BE IT ALSO RESOLVED, that there is adopted a new Rule 5.3.9 of the City Council’s Rules of Procedure to read as follows:
5.3.9 When testifying regarding any item on the Council’s legislative agenda, no person shall display any item (including, without limitation, clothing, hats, signs, buttons, stickers, etc.) in support of or in opposition to any ballot measure or any candidate for any elective office.
Passed by the City Council this ____ day of July, 2017.
______City Clerk
Approved as to form:
______Assistant City Attorney
2
RESOLUTION NO. C-______.
A resolution opposing the Federal Communications Commission’s proposal, (“Restoring Internet Freedom”) that will roll back the enforcement of net neutrality principles.
WHEREAS, the Federal Communications Commission (FCC) voted 2-1 on May 18th, 2017, to begin the rollback the enforcement of net neutrality protections via the “Restoring Internet Freedom” proposal; and
WHEREAS, the Federal Communications Commission is accepting comments on “Restoring Internet Freedom” through August 16th, 2017; and
WHEREAS, net neutrality is the principle that consumers have the right to use devices of their choice and have access to applications, services, and content of their choice without discrimination or prioritization from internet service providers (ISPs); and
WHEREAS, internet access is no longer considered a luxury but is a critical utility used in all aspects of Spokane citizens’ lives; and
WHEREAS, Spokane is the growing regional economic hub for telecommunications and information technology services and access to an open, neutral, and fair internet is a necessity for entrepreneurs, business development, and job creation in Spokane; and
WHEREAS, more than 25% of the non-farm employment in Spokane County work in the technology sector; and
WHEREAS, the end of a neutral internet could fundamentally alter information access for students in Spokane including students engaging in STEM programs; and
WHEREAS, the inability to enforce net neutrality rules could create a multi-tiered internet, limit consumer choice, and manipulate access to content through paid prioritization; and
WHEREAS, all consumers, students, non-profits, and businesses should have equal access to an open internet; and
WHEREAS, the City of Spokane joins organizations and businesses such as the Inland Northwest Technologists, ACLU, American Library Association, Internet Association, Microsoft, Amazon, Google, Facebook, and Netflix, as well as U.S. Senators Maria Cantwell and Patty Murray in opposing “Restoring Internet Freedom”;
NOW, THEREFORE, BE IT RESOLVED BY THE SPOKANE CITY COUNCIL that the City of Spokane strongly opposes the enforcement rollback of net neutrality
principles by the Federal Communications Commission known as “Restoring Internet Freedom”;
BE IT FURTHER RESOLVED, that a copy of this resolution shall be filed with the Federal Communications Commission as opposition to Docket No. 17-108, “Restoring Internet Freedom”.
PASSED by the City Council on ____.
Council President
Attest: Approved as to form:
City Clerk Assistant City Attorney
Mayor Date
Effective Date
BRIEFING PAPER City of Spokane Spokane Public Library/Finance Committee 7/11/2017
Subject
Spokane Public Library is requesting a total of $169,600 for rebranding, website development, redesigning the third floor of the Downtown Library, and bedbug treatment.
Background
At the June 20,, 2017 Library Board of Trustees meeting, the Board approved $169,600 for rebranding, website development, repurposing of the Downtown Library’s third floor, and bedbug treatment. Funds were approved to be moved from unappropriated surplus revenue to pay for these items.
The current library brand was created twenty years ago and reflects the library as it was designed at that point in time. Since then, the Library has embarked on a Future and Facilities Study to bring it into the 21st century. A major part of this rebranding will showcase the Library as an educational force in the community instead of being a warehouse for books. The library currently lacks a cohesive brand, which hurts marketing efforts. The Library would like to work with Klundt l Hosmer, a local marketing and design firm, on this work. Klundt l Hosmer presented the rebranding process to the Library Board of Trustees at the June 20th meeting.
The current Library website was built using in-house resources in order to address the problems of the previous website, which was outdated. The current website, however, was not designed to be a long-term solution, but, rather, a stopgap measure to improve the user experience until such time that the Library could develop a top quality site. With our new Manager of Marketing and Online Services, we now have the right person to lead this project and guide the design of a website that will better serve our customers. If the Library is satisfied with Klundt l Hosmer’s rebranding work, it would like to continue to work with them on the website design.
Building on the work of the Downtown Library’s LevelUp space completed in fall 2016, and in keeping with the 2016 Future and Facilities Study, the Library would like to replace the carpet, make books stack more centralized, and create a large event space on the third floor of the Downtown Library.
In late summer 2016, the Library identified an issue with bedbugs in library materials. This necessitated contracting with a pest control company in early fall. The Library requests $29,600 to continue the prescribed level of service work.
Impact
The Library rebranding will help to broaden citizens’ perceptions of the service the Library offers. Rather than thinking of the Library as it existed 20 years ago, citizens will understand how the Library fits in with the changing world. Instead of celebrating stuff, the Library’s brand will celebrate people, education, and opportunity.
Redesigning the Library website will increase access and eliminate barriers to library resources for all Spokane citizens. It will be intuitive and easy-to-use, which benefits everyone.
Redesigning the third floor of the Downtown library creates opportunities for citizens to utilize a large, free event space for cultural events and activities. It will greatly expand the Library’s efforts to be the cultural anchor of the downtown core. It will also bring us one step closer to realizing our Future and Facilities Study.
Action
All items will be completed in 2017.
Once funds are approved, work with Klundt l Hosmer will begin immediately.
Once funds are approved for Downtown third floor carpet, Facilities and the Downtown Branch Manager can begin following their project calendar for carpet completion in time to host an October 2017 event.
Once funds for professional services are approved, the service company will be able to continue the prescribed methods of treatment for bed bugs.
Funding
The funding dollars, $169,600, will all source from the Library Fund current year unappropriated surplus revenue.
For further information contact: Page 1
BRIEFING PAPER Finance Committee Petty Cash Ordinance July 17, 2017
Subject Proposed change to SMC 07.03 imprest funds.
Background The proposed housekeeping change will raise the limit for processing checks returned for nonsufficient funds from $11,000 to $20,000. During 2017, there have been 155 returned checks averaging $379.64. However, several departments have returned checks averaging $2,000-$4,000, often with several checks in process at the same time.
The advanced travel account for the Police Department necessitates an increase of $5,000 to $20,000.
Impact The increase to these petty cash accounts does not have a financial impact on the city.
Action Approval of ordinance is recommended.
Funding There is no funding impact.
For further information contact: Kim Bustos ([email protected]), 509.625.6034 Page 1
City Council Finance & Technology Committee: July 18, 2017 City Financial, Investment & Economic Update
March 7, 2016 Total Permit Activity down 12% (same down 12% last month) ◦ 9,681 permits were issued through June 2017 compared to 10,989 that were issued in the first six months of 2016. Permit volume is up 16% over 2015. 2016 was a record breaking year in terms of permit volumes – partially due to repairs from the 2015 windstorm.
New Single Family Residences down 19% (vs. down 18% last month) ◦ There were 163 SFR permits issued through June 2017 and 200 permits issued in the first six months of 2016. SFR permits are down 5% from 2015 when 171 permits were issued through June. We continue to see a high volume of SFR permits – there are currently 40 in review.
Construction Valuation up 43% (vs. up 59% last month) ◦ The valuation of permits issued through June 2017 was $311M, the valuation for permits issued through June 2016 was $2188M. Valuations are up 95% from May 2015. The valuations for all of 2014 was $312M.
Yearly Construction Valuations
$538 $600 $474 $412 $500 $408 $311 $350 $312 $400 $260 $290 $315 $252 $311 $197 $326 $300 $243 $211 $233 InMillions $183 $200 Commercial Projects $100
$0 Residential Projects 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (YTD)
Residential Projects Commercial Projects TOTALS: Construction Valuation Comparison of Publicly and Privately Funded Projects Private Public Total Public % 2017 $ 232 $ 50 $ 282 18% 2016 $ 350 $ 63 $ 413 15% 2015 $ 291 $ 35 $ 326 11% 2014 $ 253 $ 57 $ 310 18% 2013 $ 440 $ 98 $ 538 18% 2012 $ 235 $ 114 $ 349 33% 2011 $ 182 $ 51 $ 233 22%
In Millions of Dollars 2010 $ 142 $ 110 $ 252 44% 2009 $ 150 $ 93 $ 243 38% 2008 $ 282 $ 30 $ 312 10% Averages: $ 256 $ 70 $ 326 22% 70 Monthly Average of New Single Family Residence Permits
60 58
50 50
45 45
41 41 40 39 39 36
33 30 31 31 29 28 29 28 27 26 27 24 25 24 23 20 20 17 18 16 15 14 15
10
27 year average: 30
0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
700 Number of New Multi-Family Units Permitted Annually
625 600 583 15 Year Average: 303
500
466 453 425 409 400 399 371 352
300 295 296
200 182 176
142 116 100 87 Multi-Family units include Duplexes, 55 Apartments, and Mixed-Use units. 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
COMPARISON OF PROJECTS FROM 2017 & 2016 Largest Projects of 2017 Valuation Valuation Largest Projects of 2016 Myrtle Woldson Performing Arts Center $34,658,000 1 $26,400,000 Salk School Replacement - Phase 2 Copper River Apartments $27,397,406 2 $15,068,458 Highline Apartments Franklin Elementary TI & Addition $20,200,000 3 $13,282,949 Hampton Inn & Suites Macy's Shell $20,000,000 4 $12,301,588 Palouse Trails Apartments Center for Athletic Achievement $18,000,000 5 $12,000,000 RPWRF NLT Project SFCC Gym Addition and Reno $13,200,000 6 $11,499,999 North Central High School Addn Riverview Lofts $11,783,348 7 $8,100,000 GU Jesuit Residence Center Ridpath Club Apts Shell $6,300,000 8 $8,000,000 St. Joseph's Care Center Looff Carousel $6,200,000 9 $5,167,307 Kendall Yards Elm Street Apts RFP Icerink & Skyride $5,600,000 10 $4,900,000 One South Madelia $163,338,754 $116,720,301
COMPARISON OF PROJECTS ISSUED with PROJECTS IN PLAN REVIEW Largest Projects of 2017 Valuation Valuation Largest Projects in Review Myrtle Woldson Performing Arts Center $34,658,000 1 $26,000,000 UHS Behavioral Health Copper River Apartments $27,397,406 2 $10,054,858 Holy Names Haven Franklin Elementary TI & Addition $20,200,000 3 $4,652,983 Larry Miller Downtown Honda Macy's Shell $20,000,000 4 $3,146,168 Avista Fleet & Vehicle Wash Center for Athletic Achievement $18,000,000 5 $2,875,810 Regal Commons $120,255,406 $46,729,819 The Falls 2020 Construction $60,000,000 SCC Main Building Reno Summer 2017 $20,000,000 1400 Riverside Tower 2017 $20,000,000 Wonder Building Adaptive Summer 2017 $15,000,000 Re-use Shiloh Hills Elementary Spring 2018 $14,200,000 Medical Professional Offices Winer 2017 $12,000,000 STA Boone NW Garage Fall 2017 $10,800,000 6th & Jefferson Condos 2018 $6,300,000 Otis Hotel TBD $6,000,000 The Catalyst Project Fall 2017 TBD McKinley School TBD TBD Myrtle Woldson Performing Arts Center - 211 E. Desmet – A new performing arts center with two floors, five levels, a 750 seat theater, and a rehearsal hall with 150 seats. Copper River Apartments – 2911 Fort George Wright Dr. – New apartment project on Sisters of Holy Names property. 240 units in 10 buildings, a clubhouse, garages, carports, and associated buildings. Franklin Elementary Modernization and Addition – 2627 E. 17th Avenue – Remodel of 1909 Building, Demolition of 1951 building addition and portable building. Construction of a 46,000 sf addition and expanded parking lot. Macy’s Redevelopment Shell – 608 W. Main - Core and shell to include building envelope and core structures surrounding stairs, elevators. Center for Athletic Achievement – 702 E. Cataldo - New building construction and remodel of Martin Centre. SFCC Gymnasium Addition and Renovation – 3410 W. Fort George Wright Dr. – Demolition of existing locker rooms/classrooms. Renovate existing competition gym and fitness center. Construct a new 2-story addition, approximately 24,000 sf. Riverview Lofts – 1601 E. Mission – 80 Unit apartment project with 4 buildings, a clubhouse and garages. Ridpath Club Apartments Shell – 514 W. 1st Avenue - Shell permit for the historic renovation of the Ridpath Hotel and adjacent East (Y) Annex into mixed use with 206 apartments, restaurant and commercial space. Looff Carousel Building – 610 W. Spokane Falls Blvd. - New Looff Carousel building (approx. 12,308 sq. ft.) including a gift center, party room, concessions. Riverfront Park Ice Rink and Skyride– 610 W Spokane Falls Blvd – New outdoor ice rink, site and utility improvements, landscaping and new paving. New rink & sky ride building w/kitchen, rental areas, rink support rooms, sitting areas & sky ride control room. UHS Behavioral Health – 104 W. 5th Avenue - New 100 bed psychiatric hospital. Holy Names Haven – 1935 N. Holy Names Ct. – 76-units in 4 buildings with clubhouse, maintenance building, and associated site improvements. Larry Miller Downtown Honda – 1208 W. 3rd Avenue – New automotive showroom facilities, office, service reception drive, parts storage, and automatic carwash tunnel. Avista Fleet and Vehicle Wash – 1411 E. Mission - New two story concrete insulated tilt-up panel and steel framed building. Site improvements for utilities, grading and storm water management. Regal Commons – 5415 S. Regal – Phase 1 of a new commercial development – 2 retail buildings and 2 drive through restaurants. Site improvements including utilities, grading, parking, and stormwater management. The Falls – 829 W. Broadway - Mixed use building with retail, office, and residential (rent & condo). The scope of work is a structure with two 13 floor towers and a podium building over below grade parking. SCC Main Building Renovation – 1810 N. Greene St. – Partial renovation of the existing SCC Main Building South Wing and a 6,000 sf addition. 1400 Riverside Tower – 1404 W. Riverside – New mixed use parking and condominium building with 17 floors. There will be approximately 50 units in 275,000 sf. Wonder Bread Adaptive Re-use and Parking Garage – 821 W. Mallon Avenue – Tenant improvements and a change of use from a bakery to mixed use – retail, office, restaurant, and storage. A new parking garage with 261 stalls is also proposed. Shiloh Hills Elementary – 505 E. Stonewall – Several additions to the existing elementary school. Medical Professional Offices – 307 W. 4th Ave. - New medical office building with six floors and a parking garage with 3.5 floors and a basement. STA Boone NW Garage – 1224 N. Cedar - New commercial vehicle parking garage building with one floor and no basement. Proposal include the vacation of Sharp Avenue. 6th & Jefferson Condos – 1128 W. 6th. – A new 36-42 unit condo building with 4 floors of residential over 2 floors of parking. Otis Hotel – 110 S. Madison – Tenant improvement and change of use from hotel to main floor commercial with apartments on upper floors. The Catalyst Project – 611 E. Sprague – New mixed use building with six floors and a basement. The total area of the project is approximately 140,000 sf. McKinley School – 120 N. Magnolia – Change of use of two existing storage/warehouse buildings. Proposed uses include brewery, light industrial, restaurants, concert venue, retail and/or office. Sales Tax Report 12- Approx. 2017 2016 Annual $ Month Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr
King Cnty $107m 4.9% -1.9% 3.0% -0.5% 10.8% -3.0% 2.3% 6.3% 8.8% 13.6% 2.2% 8.0% 12.8% 15.2%
Bellevue $62m 4.9% 5.2% 13.7% 7.8% 5.8% 1.9% -4.0% 2.3% 7.2% 9.7% 0.4% 2.1% 8.1% 20.6%
Seattle $211m 7.0% 1.5% 7.4% 5.5% 9.1% 3.7% 7.1% 5.9% 9.3% 12.6% 5.5% 5.4% 12.4% 9.4%
Pierce $47m 7.1% 4.1% 10.0% 1.7% 10.5% 7.8% 10.2% 4.5% 10.0% 9.3% 5.8% 4.3% 6.9% 8.9%
Tacoma $43m 8.0% 5.2% 7.7% 3.0% 20.0% 15.4% 14.6% 5.8% 1.8% 6.5% 5.5% 2.9% 9.4% 11.7%
Snohomish $46m 7.5% 3.5% 5.5% 5.1% 11.3% 5.3% 6.1% 2.1% 10.0% 16.4% 6.9% 8.7% 9.3% 9.6%
Everett $27m 2.5% 0.7% -0.2% -0.5% 3.0% -1.3% 0.9% -0.7% 8.1% 9.9% 1.7% 3.3% 6.8% -0.8%
Clark Cnty $29m 8.6% 7.4% 6.4% 4.2% 8.0% 11.1% 7.3% 8.9% 11.3% 13.8% 4.4% 11.8% 8.1% 8.1%
Vancouver $34m 5.2% 7.6% 7.4% 2.1% 6.3% 4.1% 8.5% 0.2% 8.0% 4.2% 0.3% 6.1% 7.7% 8.5%
Spokane City $43m 4.8% -1.9% 7.2% -1.5% 8.2% 1.2% 7.8% 2.6% 5.7% 11.3% 2.3% 3.9% 12.5% 7.1%
Spok Cnty $24m 5.3% -0.2% 5.9% -.9% 2.6% 8.0% 9.2% 6.1% 6.6% 10.8% 0.7% 6.3% 6.7% 9.7%
Spok Valley $19m 6.3% -0.1% 5.9% .8% 4.0% 6.9% 15.5% 11.1% 12.6% 16.2% 3.7% 3.4% -3.1% 14.0% - Benton Cnty $12m 7.8% -2.0% -4.2% -16.4% 42.1% 18.9% 86.8% 17.4% 29.1% 18.2% 2.2% -29.6% 13.7% 5.1%
Kennewick $18m -0.3% -2.1% -0.1% -11.0% -2.6% -0.8% 4.4% 2.2% 3.7% 10.0% -15.4% 5.6% 5.3% 8.8% Wenatchee $8m 15.0% 14.3% 20.0% 10.7% 23.2% 9.0% 31.2% 3.2% 12.4% 25.5% 11.9% 15.9% 7.0% 14.3%
Walla Walla $5m 3.2% -6.1% -3.7% 4.1% -7.0% .7% 1.1% -1.2% 4.3% 7.9% 2.7% 17.8% 17.7% 17.2%
Yakima $17m 2.3% -8.3% 3.7% -10.5% -3.0% .2% 27.1% 2.6% 4.7% 6.9% 2.5% 1.3% 2.0% 7.5%
Statewide $1.5b 6.2% 1.3% 6.5% 5.0% 7.7% 3.2% 7.7% 4.8% 8.6% 12.0% 3.5% 5.8% 8.2% 10.7% Sales Tax History: Year-Over-Year Collections $42,000,000
$40,000,000 2017 YTD: +1.5% (2017 Budgeted +3.0%) $38,000,000 2016 Full Year: +5.2% $36,000,000
$34,000,000
$32,000,000 City Spokane: $30,000,000 20-year average 1998 - 2017: 2.8% 10-year average 2008 - 2017: 1.9% 5-year average 2013 – 2017: 5.3% $28,000,000 Last 12 Months: 4.8% State: $26,000,000 Last 12 Months: 6.2%
$24,000,000
General Fund – Revenues Through May 2017 Budgeted Over / Under Variance Increase / Revenues// Year-to-date YTD Budget Prior Month (decrease)
Sales Tax - General Fund Only 12,157,619 11,921,766 235,853 358,500 (122,647)
Admissions Tax 341,655 315,575 26,080 20,891 5,189
Private Utility Tax/Franchise Fees 13,015,853 12,316,170 699,683 957,136 (257,453)
Utility Tax - Water 2,252,053 2,441,043 (188,990) (62,955) (126,035)
Utility Tax - Sewer 6,900,142 7,103,952 (203,810) (159,135) (44,675)
Utility Tax - Solid Waste (Interfund) 3,526,214 3,511,624 14,590 8,341 6,250
Utility Tax – Stormwater 611,960 611,370 590 (275) 864
Utility Tax - IF Electric 161,564 180,405 (18,841) (21,527) 2,686
Other Bus License/Permit Revenue 1,924,732 1,597,069 327,664 150,888 176,776
Interest Revenue 3,794,189 3,050,000 744,189 301,365 442,824
Traffic & Parking Violations 1,232,071 1,077,169 154,902 102,660 52,242
------45,918,050 44,126,142 1,791,908 1,655,888 136,020 Year-end Fund Balances General Fund
FUND BALANCES: 12/31/15 12/31/16
Reserves:
• Contingency Reserve 14,523,435 14,258,093
• Revenue Stabilization Reserve 764,692 704,165
Unassigned 19,967,263 19,049,125
Non-spendable & Assigned 2,293,964 2,050,769
Total 37,549,355 36,062,153
‘Checkbook Balance’ 5,090,781 6,189,324 SERS Retirement Plan Key Plan Metrics
Funding Status Funding Status by Tier
600 100% 89% Liability Liability/ Assets 90% Members ($Ms) Member ($Ms) Funding 500
Millions 74% Retired/Vested 1,451 299,979 206,740 70% 80% 67% 67% 256,856 50.8% 63% 70% Active 5/50 863 205,728 238,387 400 60% 58% 53% 53% 60% Active Rule 75 337 16,118 47,829 18,372 114.0% 300 50% Active Rule 80 260 1,909 7,343 2,104 110.2% Total 40% 2,911 523,735 179,916 277,332 53.0% 200 30% 20% 100 10% - 0% Contribution History 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20% Investments Liabilities Funding Note: GASB 67 reduced discount rate from 7.5% to 5.5% starting in 2014 15% Plan Demographics Number Dollars ('000s) 10% 2016 2015 Change 2016 2015 Change Active 1,460 1,424 2.5% 15,173 14,802 2.5% 5% Retired 1,342 1,300 3.2% (25,738) (23,959) 7.4% Vested 109 97 12.4% 0 0 N/A 0% Total 2,911 2,821 3.2% (10,565) (9,157) 15.4% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Active Ratio 0.50 0.50 0.59 0.62 Contributions Contributions ADC ADC Net Hurdle Rate -3.8% -3.4% -5% State Budget Update – O&M Impact Summary
LEOFF II Pension State to continue to fund 20% of pension contributions Fire Insurance Premium Tax Fully Funded reduced but amount we are currently receiving is pretty Marijuana Tax immaterial so impact not too significant Marketplace Fairness Act (MFA - State version) ~ $400k annual revenue in 2018, additional $1.2m in 2019
Bottled Water Exemption repeal ~ $150k annual revenue Self Produced Fuel ~ $125k annual revenue Op budget sweeps this amount however Capital budget likely to PWTF include funding for 2018 Housing, homelessness, human services Extension of doc recording fees at current levels Homelessness funding in Housing & Essential Needs account fully funded Funding provided to implement Medicaid 1115 waiver for behavioral health and supportive housing Liquor Profits/Taxes Fully Funded Legislative Update: Property Tax McCleary #1: State must meet state constitutional requirement to fund basic education: • Beginning 2018 State Property Tax Increase: appr .70/1,000 or $105 on $150k home • $7b for schools 2018 – 2021
McCleary #2: State has relied too much on local school district property taxes to pay for school employee salaries: • Cap local school district property-tax levies at $1.50 per $1,000 in assessed value, or $2,500 per pupil beginning in 2019 • Local: $3.96 to $1.50 = $2.46 reduction …. = $369 on $150k home
Internet Sales Tax City vs. County General Fund Revenues 6-Years: Property Tax / Sales Tax City Council Finance & Technology Committee: Investment Report & National Economic Outlook Flatter Yield Curve in 2017 Shows Growth Concern Lingers Long-term Treasury yields have declined modestly, while short-term yields have risen
Short-term Treasury yields: influenced by monetary policy, (Federal Reserve has indicated desire to continue raising the fed-funds rate through rest 2017)
Long-term Treasury yields: influenced by U.S. economic and inflation outlook China’s Bond Market Yield Curve Just Inverted
WSJ 5/12/17 Inflation Growth Decelerated Slightly in April Excluding Food & Energy, Below Fed 2% Target
2.2%
1.9% National Retail Sales Change from Previous Month Paints a stronger picture of American consumers than expected New Hope for the Housing Market Millennials create demand for lower priced starter homes
WSJ – Fannie Mae Spread Between Junk Bond Yields and Treasury Yields Higher Spreads Reflect Market Uncertainty About the Economic Outlook April Unemployment Report Good News but….
• Unemployment rate lowest since 2007, dropped from 4.5% to 4.4% of work force. • Many are still only partially employed or not participating in workforce. • Core inflation is still below the Fed's 2 percent target and barely twitching
Spokane Investment Pool (SIP) Investment Composition
CLIDs / LIDs 0.3% SIP Loans 5.3% Cash (USB) 1.8%
Government Agencies 92.6%
Government Agencies SIP Loans CLIDs / LIDs Cash (USB) Spokane Investment Pool (SIP) Government Agency Maturity Analysis 120,000,000 600,000,000
100,000,000 500,000,000
80,000,000 Total Agency Portfolio: 400,000,000 $508,310,525
60,000,000 300,000,000
40,000,000 200,000,000
20,000,000 100,000,000
0 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 AnnualMaturities Cumulative Maturities
National Economic Outlook
It’s All About Sustainable City Budgeting
Forward looking and sustainable city budgets are essential to regional prosperity.
Fiscal sustainability is key to providing quality city services and infrastructure to our citizens, businesses and visitors now and predictably into the future. Comparative 10-Year Bond Rates Since Election
Rise in rates generally reflect expectations of expansive fiscal policy, lower taxes and lighter regulation proposed by U.S. President- elect Donald Trump leading to stronger growth and higher inflation
*WSJ 12/16/16 Structural Gap… Gone but not Forgotten
2.50%
2.00%
1.50%
1.00%
0.50%
0.00% 2.5% 2% 1/2% 0% Early 2000s 2005-2013 2014 2015-2021 Structural Budget Gap 43 now stands at 0% Structural Gap… Gone but not Forgotten
“Because the U.S. economy is already near full employment, Trump’s policies — particularly his infrastructure spending plan — would presumably drive up wages…” -- WSJ 12/1/16
Recall: over 80% of General Fund budget is comprised of Labor & Benefits
44 Economic Growth = Labor Force Growth + Productivity Growth (This ‘Speed Limit’ on Economic Growth is Currently Below 2%) 3% - 4% Growth Target Unrealistic Unless Add Workers or Add Productivity
WSJ Market Watch 12/5/16
U.S. Approaching Full Employment Questions Persist…
November Unemployment 9-year low of 4.6%. U-6 rate—a broad measure of underemployment that includes part-time workers looking for full employment and people who say they would enter the job market if better opportunities were available—dropped to a nearly nine-year low of 9.3%.
9.3% Unemployment: Varying Perspectives Questions Around Full Employment Increasing Risk of Recession?
- Bloomberg Markets 9/20/16 Increasing Risk of Recession?
- Bloomberg Markets 9/20/16 Increasing Risk of Recession?
- Bloomberg Markets 9/20/16 Increasing Risk of Recession? Business Cycle getting long in the tooth? City Council Finance & Technology Committee: July 18, 2017 City Financial, Investment & Economic Update
March 7, 2016 Total Permit Activity down 12% (same down 12% last month) ◦ 9,681 permits were issued through June 2017 compared to 10,989 that were issued in the first six months of 2016. Permit volume is up 16% over 2015. 2016 was a record breaking year in terms of permit volumes – partially due to repairs from the 2015 windstorm.
New Single Family Residences down 19% (vs. down 18% last month) ◦ There were 163 SFR permits issued through June 2017 and 200 permits issued in the first six months of 2016. SFR permits are down 5% from 2015 when 171 permits were issued through June. We continue to see a high volume of SFR permits – there are currently 40 in review.
Construction Valuation up 43% (vs. up 59% last month) ◦ The valuation of permits issued through June 2017 was $311M, the valuation for permits issued through June 2016 was $2188M. Valuations are up 95% from May 2015. The valuations for all of 2014 was $312M.
Yearly Construction Valuations
$538 $600 $474 $412 $500 $408 $311 $350 $312 $400 $260 $290 $315 $252 $311 $197 $326 $300 $243 $211 $233 InMillions $183 $200 Commercial Projects $100
$0 Residential Projects 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (YTD)
Residential Projects Commercial Projects TOTALS: Construction Valuation Comparison of Publicly and Privately Funded Projects Private Public Total Public % 2017 $ 232 $ 50 $ 282 18% 2016 $ 350 $ 63 $ 413 15% 2015 $ 291 $ 35 $ 326 11% 2014 $ 253 $ 57 $ 310 18% 2013 $ 440 $ 98 $ 538 18% 2012 $ 235 $ 114 $ 349 33% 2011 $ 182 $ 51 $ 233 22%
In Millions of Dollars 2010 $ 142 $ 110 $ 252 44% 2009 $ 150 $ 93 $ 243 38% 2008 $ 282 $ 30 $ 312 10% Averages: $ 256 $ 70 $ 326 22% 70 Monthly Average of New Single Family Residence Permits
60 58
50 50
45 45
41 41 40 39 39 36
33 30 31 31 29 28 29 28 27 26 27 24 25 24 23 20 20 17 18 16 15 14 15
10
27 year average: 30
0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
700 Number of New Multi-Family Units Permitted Annually
625 600 583 15 Year Average: 303
500
466 453 425 409 400 399 371 352
300 295 296
200 182 176
142 116 100 87 Multi-Family units include Duplexes, 55 Apartments, and Mixed-Use units. 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
COMPARISON OF PROJECTS FROM 2017 & 2016 Largest Projects of 2017 Valuation Valuation Largest Projects of 2016 Myrtle Woldson Performing Arts Center $34,658,000 1 $26,400,000 Salk School Replacement - Phase 2 Copper River Apartments $27,397,406 2 $15,068,458 Highline Apartments Franklin Elementary TI & Addition $20,200,000 3 $13,282,949 Hampton Inn & Suites Macy's Shell $20,000,000 4 $12,301,588 Palouse Trails Apartments Center for Athletic Achievement $18,000,000 5 $12,000,000 RPWRF NLT Project SFCC Gym Addition and Reno $13,200,000 6 $11,499,999 North Central High School Addn Riverview Lofts $11,783,348 7 $8,100,000 GU Jesuit Residence Center Ridpath Club Apts Shell $6,300,000 8 $8,000,000 St. Joseph's Care Center Looff Carousel $6,200,000 9 $5,167,307 Kendall Yards Elm Street Apts RFP Icerink & Skyride $5,600,000 10 $4,900,000 One South Madelia $163,338,754 $116,720,301
COMPARISON OF PROJECTS ISSUED with PROJECTS IN PLAN REVIEW Largest Projects of 2017 Valuation Valuation Largest Projects in Review Myrtle Woldson Performing Arts Center $34,658,000 1 $26,000,000 UHS Behavioral Health Copper River Apartments $27,397,406 2 $10,054,858 Holy Names Haven Franklin Elementary TI & Addition $20,200,000 3 $4,652,983 Larry Miller Downtown Honda Macy's Shell $20,000,000 4 $3,146,168 Avista Fleet & Vehicle Wash Center for Athletic Achievement $18,000,000 5 $2,875,810 Regal Commons $120,255,406 $46,729,819 The Falls 2020 Construction $60,000,000 SCC Main Building Reno Summer 2017 $20,000,000 1400 Riverside Tower 2017 $20,000,000 Wonder Building Adaptive Summer 2017 $15,000,000 Re-use Shiloh Hills Elementary Spring 2018 $14,200,000 Medical Professional Offices Winer 2017 $12,000,000 STA Boone NW Garage Fall 2017 $10,800,000 6th & Jefferson Condos 2018 $6,300,000 Otis Hotel TBD $6,000,000 The Catalyst Project Fall 2017 TBD McKinley School TBD TBD Myrtle Woldson Performing Arts Center - 211 E. Desmet – A new performing arts center with two floors, five levels, a 750 seat theater, and a rehearsal hall with 150 seats. Copper River Apartments – 2911 Fort George Wright Dr. – New apartment project on Sisters of Holy Names property. 240 units in 10 buildings, a clubhouse, garages, carports, and associated buildings. Franklin Elementary Modernization and Addition – 2627 E. 17th Avenue – Remodel of 1909 Building, Demolition of 1951 building addition and portable building. Construction of a 46,000 sf addition and expanded parking lot. Macy’s Redevelopment Shell – 608 W. Main - Core and shell to include building envelope and core structures surrounding stairs, elevators. Center for Athletic Achievement – 702 E. Cataldo - New building construction and remodel of Martin Centre. SFCC Gymnasium Addition and Renovation – 3410 W. Fort George Wright Dr. – Demolition of existing locker rooms/classrooms. Renovate existing competition gym and fitness center. Construct a new 2-story addition, approximately 24,000 sf. Riverview Lofts – 1601 E. Mission – 80 Unit apartment project with 4 buildings, a clubhouse and garages. Ridpath Club Apartments Shell – 514 W. 1st Avenue - Shell permit for the historic renovation of the Ridpath Hotel and adjacent East (Y) Annex into mixed use with 206 apartments, restaurant and commercial space. Looff Carousel Building – 610 W. Spokane Falls Blvd. - New Looff Carousel building (approx. 12,308 sq. ft.) including a gift center, party room, concessions. Riverfront Park Ice Rink and Skyride– 610 W Spokane Falls Blvd – New outdoor ice rink, site and utility improvements, landscaping and new paving. New rink & sky ride building w/kitchen, rental areas, rink support rooms, sitting areas & sky ride control room. UHS Behavioral Health – 104 W. 5th Avenue - New 100 bed psychiatric hospital. Holy Names Haven – 1935 N. Holy Names Ct. – 76-units in 4 buildings with clubhouse, maintenance building, and associated site improvements. Larry Miller Downtown Honda – 1208 W. 3rd Avenue – New automotive showroom facilities, office, service reception drive, parts storage, and automatic carwash tunnel. Avista Fleet and Vehicle Wash – 1411 E. Mission - New two story concrete insulated tilt-up panel and steel framed building. Site improvements for utilities, grading and storm water management. Regal Commons – 5415 S. Regal – Phase 1 of a new commercial development – 2 retail buildings and 2 drive through restaurants. Site improvements including utilities, grading, parking, and stormwater management. The Falls – 829 W. Broadway - Mixed use building with retail, office, and residential (rent & condo). The scope of work is a structure with two 13 floor towers and a podium building over below grade parking. SCC Main Building Renovation – 1810 N. Greene St. – Partial renovation of the existing SCC Main Building South Wing and a 6,000 sf addition. 1400 Riverside Tower – 1404 W. Riverside – New mixed use parking and condominium building with 17 floors. There will be approximately 50 units in 275,000 sf. Wonder Bread Adaptive Re-use and Parking Garage – 821 W. Mallon Avenue – Tenant improvements and a change of use from a bakery to mixed use – retail, office, restaurant, and storage. A new parking garage with 261 stalls is also proposed. Shiloh Hills Elementary – 505 E. Stonewall – Several additions to the existing elementary school. Medical Professional Offices – 307 W. 4th Ave. - New medical office building with six floors and a parking garage with 3.5 floors and a basement. STA Boone NW Garage – 1224 N. Cedar - New commercial vehicle parking garage building with one floor and no basement. Proposal include the vacation of Sharp Avenue. 6th & Jefferson Condos – 1128 W. 6th. – A new 36-42 unit condo building with 4 floors of residential over 2 floors of parking. Otis Hotel – 110 S. Madison – Tenant improvement and change of use from hotel to main floor commercial with apartments on upper floors. The Catalyst Project – 611 E. Sprague – New mixed use building with six floors and a basement. The total area of the project is approximately 140,000 sf. McKinley School – 120 N. Magnolia – Change of use of two existing storage/warehouse buildings. Proposed uses include brewery, light industrial, restaurants, concert venue, retail and/or office. Sales Tax Report 12- Approx. 2017 2016 Annual $ Month Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr
King Cnty $107m 4.9% -1.9% 3.0% -0.5% 10.8% -3.0% 2.3% 6.3% 8.8% 13.6% 2.2% 8.0% 12.8% 15.2%
Bellevue $62m 4.9% 5.2% 13.7% 7.8% 5.8% 1.9% -4.0% 2.3% 7.2% 9.7% 0.4% 2.1% 8.1% 20.6%
Seattle $211m 7.0% 1.5% 7.4% 5.5% 9.1% 3.7% 7.1% 5.9% 9.3% 12.6% 5.5% 5.4% 12.4% 9.4%
Pierce $47m 7.1% 4.1% 10.0% 1.7% 10.5% 7.8% 10.2% 4.5% 10.0% 9.3% 5.8% 4.3% 6.9% 8.9%
Tacoma $43m 8.0% 5.2% 7.7% 3.0% 20.0% 15.4% 14.6% 5.8% 1.8% 6.5% 5.5% 2.9% 9.4% 11.7%
Snohomish $46m 7.5% 3.5% 5.5% 5.1% 11.3% 5.3% 6.1% 2.1% 10.0% 16.4% 6.9% 8.7% 9.3% 9.6%
Everett $27m 2.5% 0.7% -0.2% -0.5% 3.0% -1.3% 0.9% -0.7% 8.1% 9.9% 1.7% 3.3% 6.8% -0.8%
Clark Cnty $29m 8.6% 7.4% 6.4% 4.2% 8.0% 11.1% 7.3% 8.9% 11.3% 13.8% 4.4% 11.8% 8.1% 8.1%
Vancouver $34m 5.2% 7.6% 7.4% 2.1% 6.3% 4.1% 8.5% 0.2% 8.0% 4.2% 0.3% 6.1% 7.7% 8.5%
Spokane City $43m 4.8% -1.9% 7.2% -1.5% 8.2% 1.2% 7.8% 2.6% 5.7% 11.3% 2.3% 3.9% 12.5% 7.1%
Spok Cnty $24m 5.3% -0.2% 5.9% -.9% 2.6% 8.0% 9.2% 6.1% 6.6% 10.8% 0.7% 6.3% 6.7% 9.7%
Spok Valley $19m 6.3% -0.1% 5.9% .8% 4.0% 6.9% 15.5% 11.1% 12.6% 16.2% 3.7% 3.4% -3.1% 14.0% - Benton Cnty $12m 7.8% -2.0% -4.2% -16.4% 42.1% 18.9% 86.8% 17.4% 29.1% 18.2% 2.2% -29.6% 13.7% 5.1%
Kennewick $18m -0.3% -2.1% -0.1% -11.0% -2.6% -0.8% 4.4% 2.2% 3.7% 10.0% -15.4% 5.6% 5.3% 8.8% Wenatchee $8m 15.0% 14.3% 20.0% 10.7% 23.2% 9.0% 31.2% 3.2% 12.4% 25.5% 11.9% 15.9% 7.0% 14.3%
Walla Walla $5m 3.2% -6.1% -3.7% 4.1% -7.0% .7% 1.1% -1.2% 4.3% 7.9% 2.7% 17.8% 17.7% 17.2%
Yakima $17m 2.3% -8.3% 3.7% -10.5% -3.0% .2% 27.1% 2.6% 4.7% 6.9% 2.5% 1.3% 2.0% 7.5%
Statewide $1.5b 6.2% 1.3% 6.5% 5.0% 7.7% 3.2% 7.7% 4.8% 8.6% 12.0% 3.5% 5.8% 8.2% 10.7% Sales Tax History: Year-Over-Year Collections $42,000,000
$40,000,000 2017 YTD: +3.0% (2017 Budgeted +3.0%) $38,000,000 2016 Full Year: +5.2% $36,000,000
$34,000,000
$32,000,000 City Spokane: $30,000,000 20-year average 1998 - 2017: 2.8% 10-year average 2008 - 2017: 1.9% 5-year average 2013 – 2017: 5.3% $28,000,000 Last 12 Months: 4.8% State: $26,000,000 Last 12 Months: 6.2%
$24,000,000
General Fund – Revenues Through May 2017 Budgeted Over / Under Variance Increase / Revenues// Year-to-date YTD Budget Prior Month (decrease)
Sales Tax - General Fund Only 12,157,619 11,921,766 235,853 358,500 (122,647)
Admissions Tax 341,655 315,575 26,080 20,891 5,189
Private Utility Tax/Franchise Fees 13,015,853 12,316,170 699,683 957,136 (257,453)
Utility Tax - Water 2,252,053 2,441,043 (188,990) (62,955) (126,035)
Utility Tax - Sewer 6,900,142 7,103,952 (203,810) (159,135) (44,675)
Utility Tax - Solid Waste (Interfund) 3,526,214 3,511,624 14,590 8,341 6,250
Utility Tax – Stormwater 611,960 611,370 590 (275) 864
Utility Tax - IF Electric 161,564 180,405 (18,841) (21,527) 2,686
Other Bus License/Permit Revenue 1,924,732 1,597,069 327,664 150,888 176,776
Interest Revenue 3,794,189 3,050,000 744,189 301,365 442,824
Traffic & Parking Violations 1,232,071 1,077,169 154,902 102,660 52,242
------45,918,050 44,126,142 1,791,908 1,655,888 136,020 Year-end Fund Balances General Fund
FUND BALANCES: 12/31/15 12/31/16
Reserves:
• Contingency Reserve 14,523,435 14,258,093
• Revenue Stabilization Reserve 764,692 704,165
Unassigned 19,967,263 19,049,125
Non-spendable & Assigned 2,293,964 2,050,769
Total 37,549,355 36,062,153
‘Checkbook Balance’ 5,090,781 6,189,324 SERS Retirement Plan Key Plan Metrics
Funding Status Funding Status by Tier
600 100% 89% Liability Liability/ Assets 90% Members ($Ms) Member ($Ms) Funding 500
Millions 74% Retired/Vested 1,451 299,979 206,740 70% 80% 67% 67% 256,856 50.8% 63% 70% Active 5/50 863 205,728 238,387 400 60% 58% 53% 53% 60% Active Rule 75 337 16,118 47,829 18,372 114.0% 300 50% Active Rule 80 260 1,909 7,343 2,104 110.2% Total 40% 2,911 523,735 179,916 277,332 53.0% 200 30% 20% 100 10% - 0% Contribution History 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20% Investments Liabilities Funding Note: GASB 67 reduced discount rate from 7.5% to 5.5% starting in 2014 15% Plan Demographics Number Dollars ('000s) 10% 2016 2015 Change 2016 2015 Change Active 1,460 1,424 2.5% 15,173 14,802 2.5% 5% Retired 1,342 1,300 3.2% (25,738) (23,959) 7.4% Vested 109 97 12.4% 0 0 N/A 0% Total 2,911 2,821 3.2% (10,565) (9,157) 15.4% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Active Ratio 0.50 0.50 0.59 0.62 Contributions Contributions ADC ADC Net Hurdle Rate -3.8% -3.4% -5% State Budget Update – O&M Impact Summary
LEOFF II Pension State to continue to fund 20% of pension contributions Fire Insurance Premium Tax Fully Funded reduced but amount we are currently receiving is pretty Marijuana Tax immaterial so impact not too significant Marketplace Fairness Act (MFA - State version) ~ $400k annual revenue in 2018, additional $1.2m in 2019
Bottled Water Exemption repeal ~ $150k annual revenue Self Produced Fuel ~ $125k annual revenue Op budget sweeps this amount however Capital budget likely to PWTF include funding for 2018 Housing, homelessness, human services Extension of doc recording fees at current levels Homelessness funding in Housing & Essential Needs account fully funded Funding provided to implement Medicaid 1115 waiver for behavioral health and supportive housing Liquor Profits/Taxes Fully Funded Legislative Update: Property Tax McCleary #1: State must meet state constitutional requirement to fund basic education: • Beginning 2018 State Property Tax Increase: appr .70/1,000 or $105 on $150k home • $7b for schools 2018 – 2021
McCleary #2: State has relied too much on local school district property taxes to pay for school employee salaries: • Cap local school district property-tax levies at $1.50 per $1,000 in assessed value, or $2,500 per pupil beginning in 2019 • Local: $3.96 to $1.50 = $2.46 reduction …. = $369 on $150k home
Internet Sales Tax City vs. County General Fund Revenues 6-Years: Property Tax / Sales Tax City Council Finance & Technology Committee: Investment Report & National Economic Outlook Flatter Yield Curve in 2017 Shows Growth Concern Lingers Long-term Treasury yields have declined modestly, while short-term yields have risen
Short-term Treasury yields: influenced by monetary policy, (Federal Reserve has indicated desire to continue raising the fed-funds rate through rest 2017)
Long-term Treasury yields: influenced by U.S. economic and inflation outlook China’s Bond Market Yield Curve Just Inverted
WSJ 5/12/17 Inflation Growth Decelerated Slightly in April Excluding Food & Energy, Below Fed 2% Target
2.2%
1.9% National Retail Sales Change from Previous Month Paints a stronger picture of American consumers than expected New Hope for the Housing Market Millennials create demand for lower priced starter homes
WSJ – Fannie Mae Spread Between Junk Bond Yields and Treasury Yields Higher Spreads Reflect Market Uncertainty About the Economic Outlook April Unemployment Report Good News but….
• Unemployment rate lowest since 2007, dropped from 4.5% to 4.4% of work force. • Many are still only partially employed or not participating in workforce. • Core inflation is still below the Fed's 2 percent target and barely twitching
Spokane Investment Pool (SIP) Investment Composition
CLIDs / LIDs 0.3% SIP Loans 5.3% Cash (USB) 1.8%
Government Agencies 92.6%
Government Agencies SIP Loans CLIDs / LIDs Cash (USB) Spokane Investment Pool (SIP) Government Agency Maturity Analysis 120,000,000 600,000,000
100,000,000 500,000,000
80,000,000 Total Agency Portfolio: 400,000,000 $508,310,525
60,000,000 300,000,000
40,000,000 200,000,000
20,000,000 100,000,000
0 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 AnnualMaturities Cumulative Maturities
National Economic Outlook
It’s All About Sustainable City Budgeting
Forward looking and sustainable city budgets are essential to regional prosperity.
Fiscal sustainability is key to providing quality city services and infrastructure to our citizens, businesses and visitors now and predictably into the future. Comparative 10-Year Bond Rates Since Election
Rise in rates generally reflect expectations of expansive fiscal policy, lower taxes and lighter regulation proposed by U.S. President- elect Donald Trump leading to stronger growth and higher inflation
*WSJ 12/16/16 Structural Gap… Gone but not Forgotten
2.50%
2.00%
1.50%
1.00%
0.50%
0.00% 2.5% 2% 1/2% 0% Early 2000s 2005-2013 2014 2015-2021 Structural Budget Gap 43 now stands at 0% Structural Gap… Gone but not Forgotten
“Because the U.S. economy is already near full employment, Trump’s policies — particularly his infrastructure spending plan — would presumably drive up wages…” -- WSJ 12/1/16
Recall: over 80% of General Fund budget is comprised of Labor & Benefits
44 Economic Growth = Labor Force Growth + Productivity Growth (This ‘Speed Limit’ on Economic Growth is Currently Below 2%) 3% - 4% Growth Target Unrealistic Unless Add Workers or Add Productivity
WSJ Market Watch 12/5/16
U.S. Approaching Full Employment Questions Persist…
November Unemployment 9-year low of 4.6%. U-6 rate—a broad measure of underemployment that includes part-time workers looking for full employment and people who say they would enter the job market if better opportunities were available—dropped to a nearly nine-year low of 9.3%.
9.3% Unemployment: Varying Perspectives Questions Around Full Employment Increasing Risk of Recession?
- Bloomberg Markets 9/20/16 Increasing Risk of Recession?
- Bloomberg Markets 9/20/16 Increasing Risk of Recession?
- Bloomberg Markets 9/20/16 Increasing Risk of Recession? Business Cycle getting long in the tooth? FINANCE & TECHNOLOGY MEETING MEETING AGENDA FOR July 17, 2017 10:30 a.m. – City Council Briefing Center
The Spokane City Council’s Finance & Technology Committee meeting will be held at 10:30 a.m. on July 17, 2017 in City Council Briefing Center –Lower Level City Hall, 808 West Spokane Falls Boulevard, Spokane, Washington.
The meeting will be conducted in a standing committee format. Because a quorum of the City Council may be present, the standing committee meeting will be conducted as a committee of the whole council.
The meeting will be open to the public, with the possibility of moving or reconvening into executive session only with the members of the City Council and the appropriate staff. No legislative action will be taken. No public testimony will be taken and discussion will be limited to appropriate officials and staff.
AGENDA I. Call to Order
II. Approval of Minutes from May 8, 2017 Meeting
III. Council Requests
1. Council Rules Change Re: Campaigning at Meetings Committee 2. Net Neutrality Resolution Committee 3. Protection of Privacy for Cable Subscribers Committee 4. South Hill Traffic Study Special Budget Ordinance Stuckart
IV. Staff Requests
1. Marijuana Mitigation Funding Forecast – Req. by CM Mumm Dunivant 2. Imprest Fund Ordinance Change Bustos 3. CIP Update Marchand 4. Special Budget Ordinance – Library Maiani 5. Financial Update Cooley/ Mallahan 6. IT Update Eric Finch • AssetWorks M-5 Contract Renewal • Cerium Networks Value Blanket Increase • Technology Update
V. Executive Session:
VI. Adjournment: Next Finance & Technology Committee meeting will be on Monday, August 21, 2017.
AMERICANS WITH DISABILITIES ACT (ADA) INFORMATION: The City of Spokane is committed to providing equal access to its facilities, programs and services for persons with disabilities. The Spokane City Council Chamber in the lower level of Spokane City Hall, 808 W. Spokane Falls Blvd., is wheelchair accessible and also is equipped with an infrared assistive listening system for persons with hearing loss. Headsets may be checked out (upon presentation of picture I.D.) at the City Cable 5 Production Booth located on the First Floor of the Municipal Building, directly above the Chase Gallery or through the meeting organizer. Individuals requesting reasonable accommodations or further information may call, write, or email Human Resources at 509.625.6363, 808 W. Spokane Falls Blvd, Spokane, WA, 99201; or [email protected]. Persons who are deaf or hard of hearing may contact Human Resources through the Washington Relay Service at 7-1-1. Please contact us forty-eight (48) hours before the meeting date. June 2017 GRANT REPORT
Consolidated Homeless Grant Award (CHG) • Dept.: CHHS • Stage: Awarded • Pending: $6,414,232 • Project Lead: Matt Davis (Dawn Kinder, Kelly Keenan, Suzi Scheidegger) • Briefed to Council or Committee: Yes, June 5th • Match Required: Unknown • Sustainability Requirement: Unknown • Federal Award: No – Wa State Department of Commerce • Grant Period: 7/1/2017 – 6/30/2019 • Info: Funds from the CHG program provide local agencies with the resources necessary to assist homeless households and provide the support needed to end their homelessness. Without these funds, the local homeless system would not be able to efficiently support households from homelessness into stable, permanent housing.
Young Adult Housing Program Grant • Dept.: CHHS • Stage: Awarded – This is an extension and acceptance of additional funding. • Pending: $101,901 • Project Lead: Matt Davis (Dawn Kinder, Kelly Keenan, Suzi Scheidegger) • Briefed to Council or Committee: Yes, June 5th • Match Required: Unknown • Sustainability Requirement: Unknown • Federal Award: No – Wa State Department of Commerce • Grant Period: Extend award until December 31, 2017 (9/1/2016 – 12/31/2017) • Info: The City of Spokane was awarded funds for the YAHP grant on September 1st, 2016 in the amount of $203,802. These funds have served as the foundation of a more robust continuum of services for youth experiencing homeless in our community and have contributed substantially to City of Spokane youth initiatives such as the 100 Day Challenge to End Youth Homelessness. The Department of Commerce’s Office of Homeless Youth’s (OHY) original agreements with awardees have a June 30th, 2017 end date, however the next award period for grant programs from the OHY will not begin until January 1st, 2018. The OHY is awarding additional funds in order to allow current grantees to bridge that gap. CHHS currently contracts with both SNAP and VOA to provide the following services to eligible 18-24 year olds through YAHP. Rental assistance, housing search, and some case management, are provided by SNAP. VOA provides the bulk of the supportive services to clients. Both agencies work together to ensure that youth obtain and maintain stable housing and are connected to needed services.
High Intensity Drug Trafficking Area (HIDTA) Grant • Dept.: Police • Stage: Awarded • Pending: $17,500 • Project Lead: Craig Meidl and Erika Wade • Briefed to Council or Committee: Yes, Public Safety June 19, 2017 • Match Required: No • Sustainability Requirement: No • Federal Award: Yes through United States Office of National Drug Control Policy • Grant Period: 7/1/2017 – 12/31/2017 • Info: The purpose of the grant is to reduce the rate of fatal opiate overdoses within the community. Naloxone is an intranasal drug that can be used to reverse the effects of an opioid overdose. Narcan is the trademark name. Nationwide-First Responders are being exposed to Fentanyl. The powder form is 100 times stronger than Heroin. This can cause instant overdose and death if not treated immediately. SPD will be using this grant to accept funding to provide Narcan to assist in public safety and keep their own officers safe.
Spokane Regional Health District (SRHD) Grant • Dept.: Police • Stage: Awarded • Pending: Donation of 100 units of Naloxone (NARCAN) • Project Lead: Craig Meidl and Erika Wade • Briefed to Council or Committee: Yes, Public Safety June 19, 2017 • Match Required: No • Sustainability Requirement: No • Federal Award: No – Spokane Regional Health District • Grant Period: Unknown – Supply Donation • Info: The purpose of the grant is to reduce the rate of fatal opiate overdoses within the community. Naloxone is an intranasal drug that can be used to reverse the effects of an opioid overdose. Narcan is the trademark name. Nationwide-First Responders are being exposed to Fentanyl. The powder form is 100 times stronger than Heroin. This can cause instant overdose and death if not treated immediately. SPD will accept a grant donation from SRHD to purchase and donate to SPD approximately 100 units of Nazloxone and receive Naloxone (NARCAN) training by SRHD.
FY 2017 DOJ COPS Hiring Program Grant • Dept.: Police • Stage: Applying • Pending: $750,000 • Project Lead: Craig Meidl and Erika Wade (Kathy Armstrong) • Briefed to Council or Committee: Yes, Public Safety June 19, 2017 • Match Required: Yes - Local Match is $860,646 • Sustainability Requirement: Yes, 12 month retention – cost estimated to be $670,187 • Federal Award: Yes – Department of Justice • Grant Period: Three year grant with 1 year of retention requirement • Info: SPD plans to submit a request for funding for 6 officer positions under the 2017 COPS Hiring Program. Four officers will bolster the Patrol Anti-Crime Team. Two officers will be permanently assigned to downtown bar patrol. Application is due July 10, 2017.
The program funds a portion of the cost for new officers with a local cash match. The federal share of funding to be awarded over the three year grant period is approximately $750,000. The local cash match will be $860,646 with a one year General Fund retention cost of $670,187 for a total General Fund cost of $1,530,833. This grant has a sustainability requirement of the City to provide retention of each officer position awarded for at least one year (12 months) following the conclusion of three years (36 months) of federal funding for that position. The additional officer positions will be added to the law enforcement budget over and above the number of locally-funded officer positions that would exist in the absence of the grant. ORDINANCE NO. C-______
An ordinance relating to imprest accounts, amending SMC sections 07.03.150 and 07.03.200.
The City of Spokane does ordain:
Section 1. That SMC section 07.03.150 is amended to read as follows:
07.03.150 Police Department - Administration
A. There is established in the police department an administration imprest fund in an amount not to exceed one thousand five hundred dollars.
B. There is established in the police department a travel expense cash advance fund in the amount of ((fifteen)) twenty thousand dollars to be used for making cash advance payments for travel expenses of police officers and employees on official business. The fund is kept on deposit in a local bank.
Section 2. That SMC section 07.03.200 is amended to read as follows:
07.03.200 Accounting Department
A. There is established in the accounting department an imprest cash fund in an amount not to exceed one thousand dollars for use in making small cash purchases and other small miscellaneous payments.
B. There is established in the accounting department an imprest fund in an amount not to exceed ((eleven)) twenty thousand dollars for use in the processing of nonsufficient funds checks returned to the City.
C. There is established in the accounting department an imprest fund in an amount not to exceed seven thousand dollars to be used for advance payments of travel expenses for City officers and employees on official business (excluding Police/Fire).
Passed by the City Council on ______.
______Council President
Attest: Approved as to form:
______City Clerk Assistant City Attorney
______Mayor Date
______Effective Date
ORDINANCE NO. C-______
An ordinance relating to the protection of privacy for cable franchise customers: amending sections 10.27A.040 and 10.27A.730 of the Spokane Municipal Code.
WHEREAS, privacy rights are fundamental because they protect important personal interests—freedom from identity theft, financial loss, or other economic harms, as well as concerns that intimate, personal details could be used to create public embarrassment or harassment or allow for opaque and harmful judgments, including discrimination; and
WHEREAS, 47 U.S. Code § 551(g) provides a franchising authority to enact and enforce laws consistent with the protection of subscriber privacy;
NOW THEREFORE, the City of Spokane does ordain:
Section 1. That Section 10.27A.040 of the Spokane Municipal Code is amended to read as follows:
Section 10.27A.040 Definitions
For the purpose of this chapter the following terms, phrases, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word “shall” is mandatory and the word “may” is permissive. Words not defined shall be given their common and ordinary meanings.
A. “Access channel” shall mean any channel set aside for public use, educational use or governmental use without a channel usage charge.
B. “Access user” shall mean any person entitled to make use of an access channel consistent with the intended purpose of the channel. (([See SMC 10.27A.510]))
C. “Affiliate” shall mean any entity, firm, corporation, or person that is owned, controlled, under common ownership, or control with, a franchisee, and provides any cable service or other services.
D. “Application” shall mean a proposal seeking authority to construct and operate a cable system within the City. It shall include the initial proposal plus all related subsequent amendments. (([See Article III of this chapter.]))
E. “Basic cable service” shall mean any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational and governmental access programming required by the franchise to be carried
on the basic tier.
F. “Cable advisory board” shall mean a City or regional cable advisory board as established by ordinance or interlocal agreement. (([See chapter 10.27A SMC, Article IV]))
G. “Cable service” or “service” shall mean: 1. the one-way transmission to subscribers of: a. video programming, or b. other programming service; and 2. subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service.
H. “Cable system” or “system” shall mean a facility, consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term shall not include: 1. a facility that serves only to retransmit the television signals of one or more television broadcast stations; 2. a facility that serves only subscribers without using any public right-of-way; 3. a facility of a common carrier which is subject, in whole or in part, to the provisions of 47 U.S.C. section 201 et seq., except that such facility shall be considered a cable system (other than for purposes of 47 U.S.C. section 541(c)) to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; 4. an open video system that complies with 47 U.S.C. section 573; or 5. any facilities of any electric utility used solely for operating its electric utility system.
I. “Channel” shall mean a portion of the electromagnetic frequency spectrum which is used in a cable system and which is capable of delivering a television channel.
J. “City” shall mean the City of Spokane, Washington. 1. For purposes of enforcement of any provision, “City” further means the ((deputy mayor)) City Administrator or their designee except where otherwise specified.
K. “Complaint” shall mean a subscriber contact with the franchisee to express a grievance or dissatisfaction concerning cable service. Complaints do not include matters not within the scope of the franchise or chapter 10.27A SMC.
1. A complaint may be verbal or in writing but need not include initial contacts where an issue is promptly resolved to the subscriber’s satisfaction.
L. “Converter” shall mean an electronic tuning device which converts transmitted signals to a frequency which permits their reception on a television receiver.
M. “Council” shall mean the legislative body of the City of Spokane, Washington.
N. “Deputy mayor” shall mean the city administrator.
O. “FCC” shall mean the Federal Communications Commission or any legally appointed or designated agent or successor.
P. “File” shall mean the delivery, by mail or otherwise, to the appropriate office, officer or agent of the City of any document or franchise required to be filed with the City. 1. The date of receipt by the City shall be considered the file date. 2. Unless specified to the contrary by the City, the filing shall be with the ((deputy mayor)) City Administrator.
Q. “Franchise” or “agreement” or “franchise agreement” shall mean the nonexclusive right and authority to construct, maintain and operate a cable system through use of public rights-of-way in the City pursuant to a contractual agreement approved by the ((city council)) City Council and executed by the City and a franchisee.
R. “Franchise area” shall mean the entire geographic area within the City as it is now constituted or may in the future be constituted. (([See SMC 10.27A.720]))
S. “Franchisee” shall mean ((an)) any entity, firm, corporation or person granted a franchise under this chapter, and the lawful successor, transferee, or assignee of such person, firm, corporation, or entity .
T. “Gross revenues” shall mean all revenue from the cable system derived by the franchisee, including its affiliates, subsidiaries, parent and any person in which the franchisee has a financial interest from the operation of a cable system to provide cable service within the City, including, but not limited to, basic cable service monthly fees, premium service fees, institutional service fees, installation, service transfer and reconnection fees, leased channel fees, converter rentals, home shopping revenues, franchise fees, advertising revenues and copyright fees; provided, however, that this shall not include any taxes on subscribers payable to the State of Washington or any other governmental unit or agency and collected by the franchisee on behalf of said governmental unit or agency, or any revenues from the provision of cable services outside the City, or any revenues from sale of capital assets or lease of property for purposes unrelated
to cable service or any bad debt related directly to gross revenues as described herein and further, shall not include the value of complimentary services provided by franchisee to its employees or non-profit agencies. 1. Any financial monthly PEG access contribution computed based on subscriber count shall not be considered part of gross revenues. 2. Gross revenues shall include, valued at retail price levels, the value of any goods and services received by the franchisee, including its affiliates, subsidiaries, parent and any person in which the franchisee has a financial interest, where treated as revenue on franchisee’s books in consideration of performance by the franchisee as described above of any advertising or other service in connection with the cable system, without any deduction because of taxes or fees on the franchisee. 3. The intent of this definition is to clarify the understanding of “gross revenues” and not decrease the historical level of franchise fee payments.
U. “Installation” shall mean the process necessary to connect the cable system at the subscriber’s premises.
V. “Institutional services” shall mean cable service to businesses, public agencies and community institutions.
W. “Leased channel” or “leased access channel” shall mean any channel, or part of a channel, available for commercial use on a fee basis by persons other than a franchisee.
X. “Lockout device” shall mean an optional mechanical or electrical accessory to a subscriber’s terminal which inhibits the viewing of a certain program, certain channel or certain channels provided by way of the cable system.
Y. “Maintain” or “maintenance” shall mean the repair, restoration, replacement, renovation and testing of the cable system or components thereof so as to ensure that it operates in a safe and reliable manner and as required by a franchise and this chapter.
Z. “Necessary” shall mean required or indispensable.
AA. “Non-cable-related purpose” shall mean any purpose that is not necessary to render, or conduct a legitimate business activity related to a cable service or other service provided by the franchisee to a subscriber. 1. Examples of non-cable-related purpose include telemarketing, market research, and other marketing of services or products.
BB. “Noncommercial” shall mean, in the context of access channels, that products and services are not sold via the access channel.
1. The term will not be interpreted to prohibit an access channel operator or programmer from independently (i.e., not in the context of any televised programming) soliciting and receiving financial support to produce and transmit video programming on an access channel, or from acknowledging a contribution, in the manner of the corporation for public broadcasting. 2. An access channel operator or programmer may cablecast informational programming regarding City events, projects and attractions of interest to residents so long as the format for such programming is consistent with the purposes for which PEG resources may be used.
CC. “Normal business hours” shall mean those hours during which most similar businesses in the City are open to serve customers. 1. In all cases, “normal business hours” must include some evening hours, at least one night per week and/or some weekend hours.
DD. “Normal operating conditions” shall mean those service conditions which are within the control of franchisee. 1. Those conditions which are not within the control of a franchisee include, but are not limited to: a. natural disasters, b. civil disturbances, c. power outages, d. telephone network outages, and e. severe or unusual weather conditions. 2. Those conditions which are ordinarily within the control of a franchisee include, but are not limited to: a. special promotions, b. pay-per-view events, c. rate increases, d. regular peak or seasonal demand periods, and e. maintenance or upgrade of the cable system. (([See SMC 10.27A.700]))
EE. “Other programming service” shall mean information that a cable operator makes available to all subscribers generally.
FF.“Other service” shall mean any wire or radio communications service provided using any of the facilities of the franchisee that are used in the provision of the cable service.
GG. “Pay television” shall mean the delivery over the system of pay-per- channel or pay-per-program audio-visual signals to subscribers for a fee or
charge, in addition to the charge for basic cable service or other programming services.
HH. “PEG” shall mean public, educational and governmental.
II. “Person” shall mean an individual or legal entity, such as a corporation or partnership.
JJ. “Personally identifiable information” means information acquired by a franchisee that identifies, relates to, describes, or is capable of being associated with, a particular individual, including but not limited to his or her name; physical address, mailing address, or other location information; telephone number; email address; internet protocol address; signature; physical characteristics or description; biometric data; driver’s license number, state identification card number, passport number, social security number, or other government-issued identification number; bank account number, debit card number, credit card number, or any other financial information; insurance information; medical information; employment information; and educational information. “Personally identifiable information” also includes browser habits, login information, consumer preferences and any other data that can be attributed to an individual and can be used for marketing, or determining access and costs related to insurance, credit, or health care. “Personally identifiable information” does not mean aggregate information about customers that does not identify particular persons.
KK. “Premium service” shall mean pay television offered on a per channel or per program basis.
LL. “Public right-of-way” or “public rights-of-way” shall mean the surface of and the space above and below any public street, road, highway, path, sidewalk, alley, court or easement now or hereafter dedicated and opened by the City for the purpose of public travel or public utilities. 1. Use of skywalks may be subject to additional regulatory requirements. 2. In the case of any grant of authority or permission by the City to a cable operator however, this term shall not exceed the scope of the City’s interests or power to extend such grant.
MM. “Service interruption” shall mean the loss of picture or sound on one or more cable channels.(([See SMC 10.27A.700(B)(2)(b)]))
NN. “Service tier” shall mean a specific set of cable services which are made available as, and only as, a group for purchase by subscribers at a separate rate for the group.
OO. “Standard installation” shall mean those that are located up to one hundred twenty-five feet from the existing distribution system.
1. Franchisee shall comply with applicable FCC regulations regarding commercial installations as may now or hereafter arise.
PP. “Subscriber” shall mean any ((person who lawfully receives cable service via the system)) customer or any resident of the city of Spokane who interacts with a franchisee for purposes of establishing any cable service or, if applicable, any person who lawfully receives other services from the franchisee.
QQ. “Video programming” shall mean programming provided by, or generally considered comparable to programming provided by, a television broadcast station.
Section 10.27A.730 Protection of Privacy
Protection of subscriber privacy shall be assured consistent with the provisions of 47 U.S.C. section 551 and Spokane Municipal Code Section 10.27A.730.
A. The franchisee shall not use the cable system to collect, record, monitor, or observe personally identifiable information without the prior affirmative written or electronic consent of the subscriber unless, and only to the extent that, such personally identifiable information is:
1. Used to detect unauthorized reception of cable communications
2. Used to obtain information necessary to render a cable service or other service provided by the cable operator to the subscriber.
B. A franchisee shall take necessary actions to prevent any affiliate from using the facilities of the franchisee in any manner, including, but not limited to, sending data or other signals through such facilities, to the extent such use will permit an affiliate unauthorized access to personally identifiable information on the computer or other equipment of a subscriber, regardless of whether such equipment is owned or leased by the subscriber or provided by the franchisee, or on any of the facilities of the franchisee that are used in the provision of cable service.
C. A franchisee shall not disclose personally identifiable information without the prior affirmative written or electronic consent of the customer, except as follows:
1. Necessary to render, or conduct a legitimate business activity related to, a cable service or other service provided by the cable operator to the subscriber;
2. Required by Federal law or pursuant to a court order or subpoena authorizing such disclosure to a government entity;
D. A franchisee may only disclose for a non-cable –related purpose the names and addresses of cable service or other service subscribers if the franchisee has provided the subscriber the opportunity to prohibit or limit disclosure, and the disclosure does not directly or indirectly disclose:
1. The extent of any viewing or other use by the subscriber of a cable service;
2. The extent of any other use by a subscriber of a cable service or other service provided by the franchisee, including but not limited do, a disclosure of the particular viewing selections by a subscriber to a cable service or other services including the web sites visited by a subscriber to non-cable service;
3. The nature of any transactions made by a subscriber over the cable system of the franchisee; or
4. The nature of programming or sites that a subscriber subscribes to or views.
E. The franchisee shall notify in writing a minimum of 30 days in advance to each subscriber that the franchisee intends to disclose personally identifiable information, including the specific information that will be disclosed, the recipient or recipients of the information, and a notice to the subscriber’s right to prohibit the disclosure of such information for non-cable-related purposes. Subscribers shall also be given the opportunity to prohibit the disclosure of information permanently in the future, unless the subscriber notifies the franchisee in writing that the subscriber wishes to permit the franchisee to disclose the subscriber’s name and address.
F. The franchise shall notify in writing within 45 days to each subscriber that the franchisee has disclosed personally identifiable information, including the specific information that has been disclosed, the recipient or recipients of the information, and a notice to the subscriber’s right to prohibit the disclosure of such information for non-cable-related purposes. Subscribers shall also be given the opportunity to prohibit the disclosure of information permanently in the future, unless the subscriber notifies the franchisee in writing that the subscriber wishes to permit the franchisee to disclose the subscriber’s name and address.
G. All personally identifiable information collected, recorded, monitored, or observed by the franchise shall be made available for subscriber examination upon request by the subscriber.
H. The franchisee shall annually mail a separate privacy statement, written in a clear and conspicuous format, to subscribers consistent with 47 U.S.C. § 551(a) and shall provide a subscriber a copy of such statement at the time the franchisee enters into an agreement with the subscriber to provide cable service or other service. The statement shall inform the subscriber of their right to prohibit the disclosure of their names and addresses for non-cable-related purposes.
I. The franchisee shall provide the names of the recipients to whom personally identifiable information was disclosed after receiving a request for such names from the City. The franchisee need not provide the name of any court or government entity to which such disclosure was made if such disclosure would be inconsistent with federal law.
J. The franchisee shall immediately destroy any personally identifiable information is the personally identifiable information is no longer necessary for the purpose for which it was collected and there are no pending requests or orders for access to such personally identifiable information pursuant to a court order or state or federal law.
PASSED by the City Council on ____.
Council President
Attest: Approved as to form:
City Clerk Assistant City Attorney
Mayor Date
Effective Date
Spokane Public Library Brand Image and Website Design & Development
May 24 , 2017 Introduction
May 24, 2017
Amanda Donovan Manager, Marketing and Online Services Spokane Public Library 906 W Main Avenue Spokane, WA 99201
Dear Amanda:
It was wonderful to with meet you in preparation for developing this proposal. It’s great to have you in Spokane helping Spokane Public Library market all it has to offer.
The library has a great opportunity ahead. The passing of the recent library levy shows that the citizens of Spokane understand the importance of public libraries and are willing to invest in them.
We understand that with public investment comes a fiscal responsibility to wisely utilize the funding which was made available and to launch any updated branding and marketing in a manner which generates public interest and pride rather than criticism.
Our firm has been involved in multiple rebranding projects for civic organizations including the City of Spokane, Spokane County, Spokane Public Schools, Riverfront Park, Spokane Parks & Recreation, Spokane Airports, the Spokane Fair and Expo Center, and a rebrand of Spokane Public Library nearly 20 years ago.
Klündt | Hosmer has guided these organizations through the branding and implementation process many times and is a trusted, expert resource for this kind of work. In addition to branding and marketing, Klündt | Hosmer is well known for the design and development of brand-focused websites that deliver intuitive user interfaces and experiences.
We are excited for the opportunity to work with you and your team to create a strong, effective and engaging visual brand, marketing design and website for Spokane Public Library.
Sincerely,
Rick Hosmer Gilbert Sandoval Partner | Chief Marketing Officer Account Coordinator Brand Image Creation for Spokane Public Library
Klündt | Hosmer’s extensive brand development process has resulted in a successful track record of nearly 500 brand identity clients, a selection of which are shown in our Position to Influence brochure and in our online portfolio at klundthosmer.com.
Brand Identity Questionnaire Our process will begin with Spokane Public Library completing the Klündt | Hosmer Brand Identity Survey. This custom survey consists of approximately 25 questions regarding your organization, how it works, its goals, who it competes with and key communication needs for the logo design. The survey should be filled out by everyone within your organization who will have input in the development of the logo design.
Once we receive the completed questionnaires, we will compile them and meet with the Spokane Public Library logo development team to ensure we have a clear understanding of the criteria and to generate consensus regarding the survey answers. This team must have authority to work directly with us and will make the final decision regarding the accepted design.
Research and Logo Design Process When consensus is reached on the survey answers, we begin the research and design process. We will review the visual identities of other libraries and companies that offer similar products and services. The purpose of this is to guide us in developing a brand design that will not only set Spokane Public Library apart from others in this field, but to develop a brand image that looks and functions even better.
We will develop a variety of rough visual concepts, refine 3 to 5 of the most appropriate designs based on the communication criteria and prepare them for presentation.
Visual Presentation and Design Philosophy Statement Along with the visual presentation, we will present our Brand Design Philosophy Statement for each design. This document will restate Spokane Public Library’s communication goals for the branding project and explain how the visual elements inherent in the presented designs achieve these goals through each design.
Following the design presentation, logo designs will either be accepted or revised based on your feedback. Ultimately, the logos will receive final approval and digital artwork files will be prepared in various formats for Spokane Public Library’s internal use.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 3 Brand Image Creation for Spokane Public Library
Tagline Development An important aspect of brand image development for Spokane Public Library is the creative development of a simple tagline to quickly communicate the purpose of the organization. Klündt | Hosmer will develop hundreds of potential taglines and present our recommendations to you. The library will select a tagline for use with the new logo design and other marketing opportunities.
Tone/Voice Development A successful brand consists of more than a logo, tagline and business card. The tone and voice of Spokane Public Library’s communication and messaging must convey a consistent personality with the new visual identity. Klündt | Hosmer will create tone, voice and messaging statements that convey the desired personality for Spokane Public Library to effectively connect with your varied audiences.
Library Card Design The library card is unique in that it becomes a representation of Spokane Public Library that customers carry with them daily in their wallets. The design of the card must convey the personality of the library brand, while presenting information and identification that the library needs to efficiently process the patron’s needs. Spokane Public Library wants a library card in every home in Spokane. According to the U.S Census Bureau, that’s over 210,000 library cards (in the city and county) — making the design of this project very important.
Sample Marketing Materials Design This brand identity work doesn’t end with a new logo, tagline and library card. Spokane Public Library has many opportunities to convey its brand personality through the design of advertising, digital marketing, signage, mailers, bookmarks, and sub-brands for library foundations, supporters and services within the library. Developing design formats for these projects will enable Spokane Public Library marketing staff to effectively promote the library’s brand on all marketing and communication materials that are produced.
Sub-branding Design As part of the research and creative work for this rebranding, Klündt | Hosmer will determine the need for sub-brands for the LevelUp business space, the Northwest Room, the Spokane Public Library Foundation, and Friends of the Spokane Public Library. If recommended, this sub-branding will follow a similar process as the core brand for the library.
Graphic Standards and Messaging Document Once the complete visual branding package is complete, Klündt | Hosmer will create a graphic standards manual and messaging document to inform and guide additional marketing projects managed by the library’s in-house staff or outside vendors.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 4 NEW LOGO:
NEW LOGO: Before & After Logo Examples
NEW LOGO: Before After
OLD LOGO:
NEW LOGO: OLD LOGO:
OLD LOGO:
OLD LOGO:
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 5 Spokane Public Library Brand Image Development Estimate
May 24, 2017
Project Estimate o Spokane Public Library Logo Design...... $9,000. o Tagline Development...... $2,500. o Tone & Voice/Messaging Development...... $4,000. o Print Advertising Format Design...... $2,000. o Online Display Ad Format Design...... $2,000. o Interior Branch Signage Format Design...... $2,500. o Sub-brand design for Spokane Public Library .Foundation, Friends of the Spokane Public Library...... $2,000. / sub-brand* o Branding Kit containing digital logo files...... $1,000. to $1,800. o Brand Guidelines/Usage Manual (InDesign)...... $3,000. to $5,000.
As a publically-funded, vital part of our community, Klündt | Hosmer is offering the Spokane Public Library a 15% discount from our standard design fees for the above work.
* To be estimated and invoiced separately, directly to each entity.
Brand Identity Development Estimate: $22,100. to $24,480. (includes 15% discount)
Timeline If initiated by June, Klündt | Hosmer does not anticipate any scheduling issues with Spokane Public Library’s implementation of this brand identity and ancillary design before the end of 2017.
Client Authorization
I hereby authorize Klündt | Hosmer to commence work on the above indicated branding projects as outlined in this proposal.
______Authorized Client Signature Date
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 6 Spokane Public Library Website Approach
How We Manage the Website Design and Development Process Klündt | Hosmer will lead your marketing and website team through our proven process to create a fresh, new website, presenting Spokane Public Library to your constituents and serving as a strong base for online communication, promotion and marketing needs.
Throughout every step, we will be in close communication with the Spokane Public Library team, responding to questions, needs and collaborating on ways to improve the effectiveness and functionality of the website.
Website Discovery We will begin this work by going through a Website Discovery process as described on the estimate page at the end of this proposal. The findings from this work will guide the development of a comprehensive website design and sitemap. A more definitive project estimate can be determined following the findings of the website discovery phase.
External Research We will review the websites of leading public libraries and other education/information/entertainment providers. We will use these findings to guide our design direction.
Website Analytics and Sitemap Development It is our recommendation that before starting the design of the site, we devote time to reviewing Google Analytics and heatmap statistics. Based on our findings, we may recommend restructuring the navigation in order to develop a more efficient, user-friendly website which has clear call-to-actions on each page in order to generate desired conversions from site users.
A Dual-Choice Approach Since the current Spokane Public Library website is developed in WordPress and specific functionality needs are already developed for that platform, Klündt | Hosmer recommends that the new website remain in WordPress. The library web team and site administrators already understand how to use that system so it would be most efficient to continue using WordPress.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 7 Spokane Public Library Website Approach
Klündt | Hosmer can either focus on developing design files for the new website which would then be implemented by the Spokane Public Library web team, or we can provide a complete website, already developed in WordPress. Your choice of which approach to take would be based on the availability of your staff to follow the design and develop the site in-house, or based on your available budget.
Estimates for both approaches — design only, or design and WordPress development are included in our estimate.
Design The website home page and interior page layouts designs will be guided by your brand communication needs and a thorough competitor review. Since the website will be used by a wide-range of people (different ages, education, culture, etc.) it must have a clean, understandable design, with easy-to- follow navigation. The design will be presented with detail on how it achieves the communication and functionality needs for the site. Following your review of the design direction, we will make up to two rounds of revisions to receive the library’s acceptance of the design.
If Spokane Public Library decides to develop the website in-house, we will prepare final digital files that can be used by in-house staff to build the new site. We have successfully used this approach for websites designed for Gonzaga University and, more recently, the Kalispel Tribe of Indians.
Photography Custom photography will be a critical aspect to developing a community connection to the library through the website. Klündt | Hosmer will work with Hamilton Studio and spend at least two days shooting and art directing hundreds of images (interior and exterior) of the library branches, featuring library staff, patrons using the library, resources available at the library, and the positive experience people will receive when using the library. These images will be used in the development of the new website and unused images can provide a photo resource for refreshing images in the website, and for use in advertising, marketing and promotion materials.
Development & Programming (if selected) Following the approved site design, we will implement photography and provided content into a WordPress or SilverStripe CMS site, which will be determined at the beginning of the project. This work will be conducted on our staging server and Spokane Public Library will have access to the staging site to review progress and to manage content while the site is in development.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 8 Spokane Public Library Website Approach
Testing (if Klündt | Hosmer provides development services) Once the content is in place, the site will be reviewed, tested and any revisions or technical “fixes” made. All functionality will be tested for browser, platform and mobile compatibility. All interior and outbound links and form submittals will be tested.
Training (if Klündt | Hosmer provides development services) As Spokane Public Library staff are experienced in managing the current website in WordPress, we anticipate the need for minimal training, simply how to use styles and formatting to match the layouts. If SilverStripe CMS is determined as the best development platform, training will be provided, which typically takes around 2 to 3 hours.
Domain Name Registration Spokane Public Library currently uses spokanelibrary.org as the domain name for its website. Klündt | Hosmer recommends the purchase and re-pointing of spokanepubliclibrary.org, and spokanelibrary.com to help first-time visitors find the site and guide more visits.
Launch (if Klündt | Hosmer provides development services) Upon review and approval of the staging site, we will transfer the site for hosting. Analytics information will be applied and hosting implemented.
Post-Launch (if Klündt | Hosmer provides development services) Following the launch of the site, the project will remain open for fixes and support for 30 days. After that, the project will be considered complete, with additional maintenance and desired revisions happening under separate project estimates.
Track Website Usage Statistics Additional website analysis can include heat maps to determine how visitors use the site, review of most-visited pages, review of “exit” pages, analysis of inbound and outbound links, review of page errors (404 errors, etc.), review of duplicate content (which search engines penalize), browser usage, returning users and more. We subscribe to a variety of resource tools which are used to maximize the effectiveness of website visit/use data.
Online Video | Assistance beyond the scope of this proposal Online video is an important consideration to quickly convey information regarding Spokane Public Library. Video helps with search engine rankings and users are much more likely to gain information from an online video than from reading pages of on-screen text.
Klündt | Hosmer can assist with the development and implementation of online videos that will communicate key information about the library, events, resources and services.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 9 Spokane Public Library Website Approach
Social Media | Assistance beyond the scope of this proposal Spokane Public Library maintains an active presence on Facebook. We encourage you to continue this engagement and look for further opportunities to promote the library’s new brand and website through social media, including Good Reads, Pinterest and Instagram. It may make sense to attract new library users through a Facebook advertising campaign or other digital marketing. While not part of this project scope, Klündt | Hosmer offers digital marketing and other marketing and promotion strategies and services that would assist Spokane Public Library to connect with the community and deepen its relationship with the public.
A Surprising Library Connection While working on this branding and website development proposal, we learned that Tiffany Patterson, one of our designers, had worked with Spokane Public Library in the development of library cards for teen users. An example of her library card design is shown below:
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 10 Klündt | Hosmer Responsive Website Example
iPad 9:45 AM 100%
Other responsive website examples can be seen at klundthosmer.com/portfolio
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 11 Spokane Public Library Website Estimate
May 24, 2017
Website Design and Development Project Estimate o Review of analytics and development of sitemap...... $2,500. o Responsive Website Design (Home Page and 3 Interior Layouts)...... $8,000. o Limited Custom Photography and Art Direction (Downtown Branch)...... $3,000. o Project Management (Design)...... $3,000. o WordPress or SilverStripe CMS Development...... $14,000 to $16,000. o Project Management (Development)...... $4,000.
o Design Development only...... $14,025.* o Design and WordPress/SilverStripe CMS Development...... $29,325. to $31,025.* *Includes 15% discount
Client Authorization
I hereby authorize Klündt | Hosmer to commence work on the above indicated website projects as outlined in this proposal.
______Authorized Client Signature Date
All fees and expenses shown are minimum estimates only. Changes in scope of work and/or project specifications will cause the estimated price to change. Fees quoted are based on work performed during the course of regular working hours. Overtime, rush, holiday and weekend work necessitated by Client’s directive is billed in addition to the fees quoted. Past due invoices may result in legal action, and the Client will be held responsible for all fees incurred for the collection of late payments, including, but not limited to attorney fees, court costs, collection agency fees and late fees on unpaid balance. Klündt | Hosmer’s ability to meet deadlines is predicated upon the Client’s provisions of all necessary information and approvals in a timely manner. The information contained in this proposal is valid for thirty days. The Client’s signature shall evidence acceptance of these terms.
COPYRIGHT INFRINGEMENT DISCLAIMER: Klündt | Hosmer assumes all Client-provided photography or illustration is free from copyright or has been purchased from copyright owner for usage in/on this project. Klündt | Hosmer will not be responsible for any copyright infringement for photography, illustration or materials supplied by the client for use in this project.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 12 Klündt | Hosmer Qualifications
Experience You Can Trust Klündt | Hosmer opened business in Spokane, WA in 1987 as a branding and visual communications partnership. Since that time, we have expanded our services to become one of the region’s largest and most experienced full-service visual communication firms.
Klündt | Hosmer’s team consists of 16 talented and dedicated individuals and it headed by principals Darin and Jean Klündt, Rick Hosmer, Diane Mahan and Ashley. These partners serve as art directors, creative directors and account executives, and manage a team of three graphic designers, four interactive developers, two digital marketing strategists, along with additional account coordinators, a traffic coordinator and financial staff.
Klündt | Hosmer is nationally recognized for our compelling brand image work. Our art directors and designers have literally created the corporate face of the region through the nearly 500 business and organization logos we have developed.
Embracing all areas of corporate visual communication, Klündt | Hosmer began designing and developing websites in 1995 — years before most design firms entered the market.
We have significant experience working with civic organizations, boards of directors, in-house marketing staff, and outside stakeholders. Our design process begins by engaging with these people to ensure they share input in the communication of the brand image and website we develop, and agree to understandable criteria to determine the projects’ success. This consensus-building helps the approval process glow smoothly.
Klundt | Hosmer’s philosophy is summed up by the words of our internal Purpose Statement: “To collaborate with clients to discover and express who they really are through authentic, brand focused communication.”
Spokane Public Library can trust that our process, coupled with our award-winning designers, writers and developers will result in refreshed branding, marketing design and a website that will properly represent Spokane Public Library, its resources, services and facilities to your wide-ranging audiences.
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 13 Klündt | Hosmer Capabilities and Services Website Design Website Development Website International Websites Websites Multi-Language and Localized (CMS) Management System Content UX/User Experience App Development Solutions eCommerce Online Surveys Hosting/IT Sol Domestic SEO International SEO Analytics and Reporting Advertising Search (PPC) Paid (CPM) Banner/Display Retargeting/Remarketing Advertising Landing Pages Business MarketingLocal (Pandora/Net ix) Audio/Video Digital Messaging Text/SMS Mobile App Advertising Pay-Per-Click) (similar to Pay-Per-Call QR Codes/Barcodes & SocialSocial Media Ads Marketing Social Sharing and Bookmarking eNewsletter emails (cart abandonment) Transactional Nurture cust.) emails (convertLead to % o ) birthday, happy Anniversary (e.g., Tutorials/Webinars Videos About Us/Our Culture/Corp Videos Online Testimonial Project Review Videos digital and Website Interactive Engine Search (SEM) Marketing Online Marketing Email Marketing Marketing Video Brand Image/Logo Design Brand Image/Logo Graphic and Brand Standards and Envelopes Letterhead Business Cards Annual Reports Signage Tools and Sales Literature Poster Folders Proposals Wear Apparel/Logo Illustration Photography Charts/Graphs Advertising Television Radio Advertising Billboards Vehicle/Transit Newspaper Ads Magazine Design B2B Magazine Ads B2C Magazine Ads Catalogs Brochures Direct Mail Directional/Maps Booth Design Items Promotional Signage Event Packaging Product (POP) Point-of-Purchase Display In-store
Klündt | Hosmer Tradeshow, Exhibit Tradeshow, and Environmental Merchandising Broadcast Advertising Broadcast Visual Identity Visual Imagery Outdoor Advertising Print Collateral Design Collateral design Corporate and Product Naming and Product Corporate Development Tagline Development and Content Writing Messaging Brand Platform Statements Positioning Voice and Tone Development Persona Message Localization Brand Strategy Strategy Digital Marketing Strategy Audits Website Brand and and Gap Analysis SWOT Industry Research Intelligence Competitive Testing Consumer/Focus Group strategy Naming Messaging Strategy and Audits Research
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 14 Contact Information
Klündt | Hosmer offices are located at: 216 West Pacific, Suite 201, Spokane, WA 99201 509.456.5576 tel 866.456.5577 toll-free 509.456.5848 fax klundthosmer.com
Office hours are 8:00 AM to 5:00 PM Pacific, Monday through Friday. Staff is generally in the office from 7:30 AM to 6:00 PM. Key personnel are readily accessible via office phone, mobile phone and email.
Your Points of Contact: Rick Hosmer [email protected] 509.456.5576 x113 office 509.995.6565 mobile
Gilbert Sandoval [email protected] 509.456.5576 x116 office 509.200.7426 mobile
© 2017 Klündt | Hosmer. The information contained in this document is proprietary and is not to be shared outside the intended parties. 15 ORDINANCE NO. C- ______
An ordinance amending Ordinance No. C-35457, passed the City Council November 28, 2016, and entitled, “An ordinance adopting the Annual Budget of the City of Spokane for 2017, making appropriations to the various funds, departments, and programs of the City of Spokane government for the fiscal year ending December 31, 2017, and providing it shall take effect immediately upon passage”, and declaring an emergency.
WHEREAS, subsequent to the adoption of the 2017 budget Ordinance No. C-35457, as above entitled, and which passed the City Council November 28, 2016, it is necessary to make changes in the appropriations of the General Fund, which changes could not have been anticipated or known at the time of making such budget ordinance; and
WHEREAS, this ordinance has been on file in the City Clerk’s Office for five days.
NOW, THEREFORE, the City of Spokane does ordain:
Section 1. That in the budget of the General Fund, and the budget annexed thereto with reference to the General Fund, the following changes be made:
FROM: 0100-99999 General Fund 99999- Unappropriated Reserves $ 20,000
TO: 3200-49199- General Fund – 99999-39710- Arterial Street Fund $ 20,000 99999
Section 2. It is, therefore, by the City Council declared that an urgency and emergency exists for making the changes set forth herein, such urgency and emergency arising from the need to provide traffic data collection and analysis along with public outreach on the Upper South Hill between Regal and Freya from 29th to the south City limits; and because of such need, an urgency and emergency exists for the passage of this ordinance, and also, because the same makes an appropriation, it shall take effect and be in force immediately upon its passage.
Passed the City Council ______
______Council President
Attest:______City Clerk
Approved as to form:______Assistant City Attorney
______Mayor Date
______Effective Date