2024, 01-02 Study Session MeetingMINUTES
City of Spokane Valley
City Council Shady Session Meeting
Tuesday, January 2, 2024
In the absence of a mayor, City Cleric Patterson called the meeting to order at 6:00 p.m. The rnecting was
held in person in Council Chambers, and also remotely via Zoom meeting.
Attendance:
Councilmembers Staff
Pain Haley, Councilmember John Hohan, City Manager
Rod Higgins, Councilmember Erik Lamb, Deputy City Manager
Tien Hattenburg, Councilmember Chelsie Taylor, Finance Director
Laura Padden, Councilmember Gloria Mantz, City Services Administrator
Al Merkel, Councilmember Kelly Konkright, City Attorney
Ben Wick, Councilmember Bill Helbig, Community & PW Director
Jessica Yaeger, Councilmember John Whitehead, Human Resources Director
Tony Beattie, Sr. Deputy City Attorney
Dave Ellis, Police Chief
Jill Smith, Communications Manager
Adam Jackson, Engineering Manager
Dan Baker, Engineer — Planning & Grants
Patricia Rhoades, Deputy City Clerk
Julie Meyers -Lehman, Executive Assistant
Chad Knodel, IT Manager
Justan Kinsel, IT Specialist
Marci Patterson, City Clerk
ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present.
APPROVAL OF AGENDA It was moved by Councilmember Higgins, seconded and unanimously agreed
to approve the agenda.
GENERAL PUBLIC COMMENT OPPORTUNITY: After City Cleric explained the process, she invited
public comment. Barb Howard Spokane Valle via Zoom): asked about the city bond rating and noted
that we are a contract city and there is a need to go out to contract for the park services and that she would
like an audit done on CenterPlace. Mr. Ian Robertson, Spokane Valley: spoke about being a long-time city
resident and offered well wishes for the new councilmembers and hopes they can continue to make this city
better. Mr. Doug Engle, Spokane Valley: spoke about a community land trust and opportunities for more
affordable housing options and using Zohomes as an alternative for affordable housing. Mr. John Harding,
Spokane Valley, spoke about a potential threat to our local power grids.
ACTION ITEM:
1. Council Officer Selections for Mayor and Deputy Mayor -W- Marci Patterson
City Clerk Patterson explained the process of selecting council officers, as noted in the Council's
Governance Manual and the council packet's Request for Council Action form, and that the election is
determined by a majority vote of members present.
Ms. Patterson opened the floor for nominations for mayor. Councilmember Hattenburg nominated
Councilmember Haley. Councihnember Merkel nominated Councilmember Merkel, Councilmember Wick
nominated Councilmember Wick. Written ballots were distributed to Councilmembers and returned to the
City Clerk as follows: Those voting for Councilmember Haley for Mayor included Councilmember Haley,
Councilmember Higgins, Councilmember Padden, Councilmember Hattenburg and Councilmember
Yaeger. Those voting for Councilmember Wick for Mayor included Councilmember Wick. Those voting
Council Meeting Minutes, Study Session: 01-02-2024 Page 1 of 3
Approved by Council: 02-27-24
for Councilmember Merkel for Mayor included Councilmember Merkel. City Cleric Patterson noted that
the majority vote for Mayor has resulted in the election of Councilmember Haley for Mayor.
At Mayor Haley's request, City Clerk Patterson opened the floor for nominations for deputy mayor.
Councilmember Higgins nominated Councilmember Hattenburg. Councilmember Yaeger nominated
Councilmember Yaeger. Written ballots were distributed to Councilmembers and returned to the City Clerk
as follows: Those voting for Councilmember Hattenburg for Deputy Mayor included Councilmember
Haley, Councilmember Higgins, Councilmember Wick, and Councilmember Hattenburg. Those voting for
Councilmember Yaeger for Deputy Mayor included Councilmember Merkel, Councilmember Padden, and
Councilmember Yaeger. City Clerk Patterson noted that the majority vote for Deputy Mayor has resulted
in the election of Councilmember Hattenburg for Deputy Mayor.
2 2024 Community Forestry Assistance Grant — Adam Jackson, Dan Baker
It was moved by Deputy Mayor Hattenburg and seconded to authorize the City Manager to apply for the
Cvrstnrtrnity Forestry Assistance Grant requesting $22.5, 000 to conduct an inventory and maintenance plan
for trees located on city parks and roadway landscaped areas. Mr. Jackson briefly explained the purpose
of the grant. Mr. Baker provided details on the parameters of the grant and what the city would do with the
funds if they were awarded the grant. Council briefly discussed the grant and requirements for submitting
an application. Mayor Haley called for public comment. Mr. John Harding, Spokane Valley noted that the
funding sounded too good to be true if the state and federal agencies were involved. Mr. Mike Dolan,
Spokane Valley, asked if there was an opportunity to request the full $350,000 grant. Vote by acclamation
on the original motion: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councilrnembers Higgins, Wick,
Yaeger and Padden. Opposed: Councilrrrenrber Merkel. Motion carried
NON -ACTION ITEMS:
3. Admin Report — Potential Grant Opportuni : City Safety Program — Adam Jackson Dan Baker
Mr. Jackson briefly explained the opportunity for a City Safety Program grant with a PowerPoint
presentation. He also provided background information on the grant as well as requirements for the
application. Council discussed the list of projects and the need to prioritize them for the grant requirements.
Council provided consensus to bring this back for a motion at a later Council meeting.
4. Admin Report — Potential Grant Opportunity:. RAISE Program — Adam Jackson Dan Baker
Mr. Jackson presented a Rebuilding American. Infrastructure with Sustainability and Equity (RAISE) grant
PowerPoint presentation and explained how the grant is funded. Mr. Balser explained that the RAISE
application would be for Sullivan/Trent Interchange project. Council provided consensus to bring this back
for a motion at a later Council meeting.
5. Advance Agenda — Mayor Haley
Councilmember Merkel requested repealing the "license plate tax" and did not have any additional
consensus to add it to the advance agenda.
Councilmember Higgins requested staff look into the use of the city logo being used on the Nextdoor App
and there was consensus from council to have that added to the advance agenda.
COUNCIL COMMENTS
There were no additional council comments.
CITY MANAGER COMMENTS
Mr. Hohman congratulated the Mayor and Deputy Mayor on their appointments. He also noted that there
would not be a council meeting on the 16"' as council will be traveling to Olympia that day. He has also
scheduled a workshop for February 13" for council and that the newly created Strategic Planning
Committee will assist with the agenda for the workshop. Mr. Hohman thanked Garco construction and staff
for their hard work that has allowed us to be back in chambers for the first meeting of the new year.
Council Meeting Minutes, Study Session: 01-02-2024 Page 2 of 3
Approved by Council; 02-27-24
It was, moved by Cozit?cili)ieiiibei,,FIiggi�,i,s, seconded and unanimously ag-reed to cidjourn, The meeting
ad.journed at 7:04p,m.
ATTEST
Pane Haley, M&6r
marel tterson, City Clerk
Council Meeting Minutes, Study Session: 01-02-2024 Page 3 of 3
Approved by Council: 02-27-24
2 January 2024
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Robison; they all were very helpf ul.
The Spokaine area was hit signlificantly with new out-of-state residents during COVID-19. In2020,
the Home Builders Association did a study showing a 32,000 housing unit deficit. It is substantially
worse today. Building new housing for low- and middle -income homeownership is nearly only
possible with affordable land.
The newly formed Robertson Community Land 'r—ru_s_fVRU1i is in 'poFa—n—e
Empire in WA. A CILT is a nonprofit organization that owns land and develops housing to create
permanently affordable homes. CLTs provide 99-yeair leases for roughly $85/month, which
separates the land from improvements, which, banks will finance. As we begin fundraising, we
hope the city will provide a letter of support.
ZoHoni was, formed to manufacture the needled "affordable"' houses at a substantially lowe
price than today's methods. We have developed a unique rigid insulation panel to produce
and roof panels while simplifying construction to facilitate substantial labor savings. We are
working with Mercer Mass Timber to develop hybrid houses and apartments, creating new job
31
We are initiating discussions with CVSD to use surplus school property for homeless K-12 student
housing before contacting WVSD and EVSD. Truly surplus property, some of which is "brownfield"
could be donated to RCLT and, remediated for affordable housing. RCLT and ZoHoimZ will provide
housing, a!nid Family Promise will manage the people.
Finally, your leadership and Greater Spokane Inc. could form a state Commerce Innovation Cluster
for Affordable Housing under the Forest Products Key Sector here in Spokane Valley. This would
bring funding for research and development, bring industry and education focus for innovation,
and create new jobs. Partnering with our local technical schoo,ls, colleges, universities, and
associations will make the results stronger.
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NEIGHBORHOOD IN-A-B►OXT`"
Entity Types
As of 2 December 2023
NEIGHBORHOOD IN -A -Box;"" (NIB) is a neighborhood design concept, not an entity.
NIB is a pocket neighborhood design concept and product to facilitate community -building in
sustainably built, durable, energy -efficient duplexes in a "U" shape, with a courtyard in the middle with
a child -friendly greenspace and vehicles in the back. Multi -generation housing and mixed backgrounds
are critical. Front porches provide a public and private space to help build relationships and build
community. A Common House will typically be added. NIBs may be combined into villages. Individual
homes in NIB are designed to have the lowest total cost of home ownership.
ROBERTSON COMMUNITY LAND TRUST is a 501.(c)3 non-profit entity pending IRS approval.
RCLT is responsible for land acquisition, pre -development work, house financing, and ongoing
operations. A tri-parte nine -person board of directors will be 1/3 NIB residents, 1/3 housing experts,
and 1/3 community leaders. They oversee the management team and assist in achieving RCLT
objectives with fundraising and land donations. Residents will select a nine -person advisory committee.
ZoHOMZTM is a Social Purpose Corporation.
ZoHomZTm will manufacture wall panels and provide all components for housing and multifamily
projects. Employee ownership will be the order of the day based on duration of employment and pay.
The vision is to have employees concerned about operational efficiency, continuous process
improvement, and delivering homeowner value and be rewarded for sound decisions through
dividends. Capital maintenance reserves are a primary objective for "Other Income/Expense"
distributions while providing 5% net income and houses with the lowest total cost of home ownership.
ZoHomZTm will be B-Corp certified.
ZOBUILDT" will be a Social Purpose Corporation in early 2024.
ZoBukLDTM will construct ZoHomZTm houses and train workers. The intent is to build a core team with new
employees in a three-year training and education program that results in their ability to purchase a
home directly from ZoHOMZT"'. Further, ZoBuILDT'" will encourage and educate entrepreneurial efforts to
support ZoHomZT' construction. It will have an ownership profile similar to ZoHomZTm. ZoBuILDTM will
develop and construct capital improvements for RCLT.
ZoSvtrm will be a 501.(c)3 non-profit entity when ZoBUILDT`" is established.
ZOSvtT"" will provide homeowner education, maintenance training, and NIB services for RCLT. Education
and training will be provided for property management and property maintenance positions. Funding
will come from 1/3 ZoHOMZTM, 1/3 NIB residents via RCLT, and 1/3 from grants, residents or RCLT.
Douglas Engle Proprietary (c) 509-319-0471
RoBERTSON COMMUNITY LAND TRUST (RCLT)
Mission, Scope, and Dissolution
As of 9 November 2023
MISSION
To acquire land and develop NEIGHBORHOOD Its-A-Box7m community housing to provide people safety,
stability, and happiness in their homes.
SCOPE
As a community land trust, we aim to create and maintain homeownership opportunities for
financially qualified low and middle -income people maximizing diversity, equity, and inclusion on
acquired or donated land based on sustainable environmental and business practices, creating
engaging work with mutual trust, respect, and responsibility across Eastern Washington.
The Robertson Community Land Trust (RCLT) is to hold and use real property for people needing
housing in cooperation with its communities. RCLT will conduct fundraising, seek property
donations, and do pre -development work, including financing, for its neighborhoods, villages, and
other development projects.
RCLT may own commercial property, including factory production land and buildings, for its
housing partner, ZOHOMZt"', to provide residents with economic opportunities and keep finished
housing costs low. Job training, education, and volunteering opportunities, including life skills, will be
broadly encouraged and supported.
individual NEIGHBORHOOD IN-A-Box''A (NIB) pocket neighborhoods are the fundamental building block of
NIB; it is not RCLT's objective to build on individual city lots or single-family homes outside the NIB
community concept, although such projects are possible. Villages with a community center,
apartments, transitional housing, NIB pocket neighborhoods, storage buildings, grow houses, and
ample green spaces will be sought for parcels of roughly 3+/- acres.
DISSOLUTION
Assets will be distributed upon dissolution to another community land trust or similar, e.g.,
"Spokane Regional Land Bank" or a social housing non-profit, e.g., Habitat for Humanity,
Community Frameworks, or others.
Robertson Community Land Trust Proprietary (c) 509-319-0471
ZoHo Ngrs SPC
A Social Purpose Corporation
As of 26 October 2023
External Long -Term Measures
ZoHomZ"" has a social purpose of producing sustainable Net Zero Energy -ready durable, highly fire-
resistant housing at the most affordable price, primarily for the Robertson Community Land Trust.
Housing will target households averaging 80% of AMI with a 30415% range and will respond to natural
disaster housing needs as necessary.
Production output should reach 4 units per day by the end of production year three.
Employee input is vital to improve all processes to reduce the total cost of homeownership and meet
production objectives.
Typical two -bedroom housing designs are intended to facilitate a 5-day ZOBUIL04 construction timeline
post -site work by the end of year three of operations.
ZoSWm will track household satisfaction, concerns, and issues. These will be measured regularly to
ensure ZOHoMZ"" product management maintains long-term awareness of actual housing performance.
Product management will coordinate with design, architectural, and engineering services to ensure
Design Concepts are being achieved. They will maintain current market information, trend awareness,
and search out new products.
Employee education and skills training is foundational for careers inside and outside the company,
including life skills.
Entrepreneurial education and mentorship are encouraged for ZoHoMZTM related companies while
maintaining 50% five-year employment retention.
Financially, ZoHoMZ"" seeks to generate solid cash flow while maintaining ongoing operational growth
and minimizing long-term debt to strengthen the company long term.
The income statement will target a 30% gross margin with 15% EBITDA and 5% net income while
fabricating housing with the lowest total cost of homeownership.
*Startup years 1-3 will vary from these objectives as production equipment arrives and a new factory
facility becomes fully operational.
Douglas Engle Proprietary (c) 509-319-0471
BALL.01'FWZ MAYOR,
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Tuesday, Jauuary 2, 20,24
6:�00 p.m.
(il N E Ra�aw Al, 11 L) B L I C C 0 M ME N T 0 P w�wwwwP1 0 RTU N I TY
YOUR SPEAKING TIME, WILL GENERALLY BE LIMITED TO THREE MINUTES
You inav shm in to smak but it is not necessarv, as the Mayor will afford the public the opportunity to, speak.
NAME
PLEASE PRINI
TOPIC OF CONCERN YOU
WILL SPEAK ABOUT
YOUR CITY OF RESIDENCE
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Please note thal once hil'brinittion himlered on this.1brm, it becollms dt Public recontsubjecl topoehlic dhvelo.vure�