2024, 09-24 Formal A Meeting105 "10-0111961
City of Spokane Valley
City Council Regular Meeting
Formal Format A
Tuesday, September 24, 2024
Mayor Haley called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in
Council Chambers, and also remotely via Zoom meeting.
Attendance:
Councilmembers Staff
Pam Haley, Mayor John Hohman, City Manager
Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager
Laura Padden, Councilmember Gloria Mantz, City Services Administrator
Rod Higgins, Councilmember Chelsie Taylor, Finance Director
Jessica Yaeger, Councilmember John Bottelli, Parks & Rec Director
Ben Wick, Councilmember Kelly Konkright, City Attorney
Al Merkel, Councilmember Jill Smith, Communications Manager
Tony Beattie, Sr. Deputy City Attorney
Dave Ellis, Police Chief
Mike Basinger, Economic Development Director
Bill Helbig, Public Works Director
John Whitehead, Human Resources Director
Erica Amsden, CIP Engineering Manager
Sarah Farr, Accounting & Finance Program Mngr
Justan Kinsel, IT Specialist
Marci Patterson, City Clerk
INVOCATION: Pastor Steve Allen, Valley Real Life Church gave the invocation.
PLEDGE OF ALLEGIANCE Council, staff and the audience stood for the Pledge of Allegiance.
ROLL CALL City Clerk Patterson called roll; all Councilmembers were present.
APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg to approve the amended agenda,
seconded and agreed unanimously.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS n/a
COUNCILMEMBER REPORTS
Councilmember Yaeger: attended Valleyfest, Washington Policy Center Dinner, Balfour Park soccer mini
pitch opening, Heritage Museum event, Nuvodia ribbon cutting event, and a Ponderosa Women's event.
Councilmember Padden: attended the Balfour Park soccer mini pitch opening, Heritage Museum 20"'
anniversary event, and the Washington Policy Center Dinner.
Councilmember Higgins: stated that he attended the Balfour Park soccer mini pitch opening.
Councilmember Wick: attended the WA Association of Cities event, Valleyfest parade, and the Interstate
Fair event for all 10 days.
Councilmember Merkel attended the roundtable event hosted by Dr. Valasquez.
Deputy Mayor Hattenburg: stated that attended the Balfour Park soccer mii pitch opening, Valleyfest
parade, an STA board meeting and provided updated stats.
MAYOR'S REPORT
The Mayor provided an update on STA and stated that they are still looking for a CEO and she attended the
Washington Policy Center Dinner.
Council Meeting Minutes, Formal: 09-24-2024 Page I of 5
Approved by Council: 11-26-2024
PROCLAMATIONS:
GENERAL PUBLIC COMMENT OPPORTUNITY:
After Mayor Haley explained the process, she invited comments from the public. Mr. Ben Lund, Spokane
Valley and Mr. Rick Freier, Spokane Valley provided general comments.
NEW BUSINESS:
1. Consent Agenda: Consists of items considered routine which are approved as a group. Any member of
Council may ask that an item be removed from the Consent Agenda to be considered separately.
Proposed Motion: I move to approve the Consent Agenda.
a. Approval of Claim Vouchers, Sept. 24, 2024, Request for Council Action Form: $19,614,351.87.
b. Approval of Payroll for Pay Period ending September 15, 2024: $582,867.37.
c. Approval of Council Meeting Minutes of July 23, 2024
d. Approval of Council Meeting Minutes of July 30, 2024
e. Set 2025 Budget Hearing for October 15, 2024 It was moved by Deputy Mayor Hattenburg,
seconded and unanimously agreed to approve the Consent Agenda.
2. Motion Consideration: ARPA/CLFR Allocation Update — Sarah Farr
It was moved by Deputy Mayor Hattenburg and seconded to approve reallocating the $116,270
remaining in the Internal City Costs category of the ARPA/CLFR funding to the Law Enforcement
Assistance category, added to the line item for Other Law Enforcement Assistance. This would bring the
total Law Enforcement allocation in the general government funds from revenue replacement from
$1,860,705 to $1,976,976. Ms. Farr noted background from her previous presentation and the current
recommendation for the funding. Mayor Haley invited public comment; no comments were offered. Vote
by acclamation: in favor: unanimous. Opposed: none. Motion carried.
2A. Motion Consideration: Pines Rd/BNSF Grade Separation Project, Construction & Maintenance
Agreement - Bill Helbig, Erica Amsden
It was moved by Deputy Mayor Hattenburg and seconded to allow the City Manager to finalize and
execute the BNSF Roadway Underpass Construction and Maintenance Agreement in the approximate
amount of $8, 615, 850, in substantially the form of the attached agreement. Mr. Helbig and Ms. Amsden
provided background on the project, the agreement and additional details noting that the C&M agreement
will secure the necessary property rights from BNSF for the project, will allow BNSF to move forward
with the necessary railroad bridge construction, and provide for BNSF project monitoring during the
roadway construction. Following execution of the agreement, BNSF will be able to order materials for the
project and commence bridge construction this winter. Council discussed the challenges finalizing the
agreement. Councilmembers commended staff on the efforts to get the agreement completed and that it
was a great accomplishment. Mayor Haley invited public comment; no comments were offered. Vote by
acclamation: in favor: unanimous. Opposed.• none. Motion carried.
Executive Session:
It was moved by Deputy Mayor Hattenburg and seconded that Council adjourn into executive session for
approximately 30 minutes to discuss pending litigation, and that action may be taken upon return to open
session. Should action be taken, there will be a public comment opportunity. Council went into Executive
Session at 6:35p.m. Council returned at 7:06p.m. at which time Mayor Haley stated that they were out of
Executive Session.
It was moved by Deputy Mayor Hattenburg and seconded to authorize the city manager to execute a
settlement agreement with Architects West consistent with the terms of the CR2A agreement dated Sept.
19, 2024. Mayor Haley invited public comment; no comments were offered. Vote by acclamation: in
favor: unanimous. Opposed: none. Motion carried.
Council Meeting Minutes, Formal: 09-24-2024 Page 2 of 5
Approved by Council: 11-26-2024
2B Motion Consideration: Approve or Deny City -Funded Legal Representation to Councilmember Merkel
for his appeal to the City Hearing Examiner - Kelly Konkright
It was moved by Deputy Mayor Hattenburg and seconded to (1) find that Rebecca Dean 's September 3,
2024, investigation report concludes that Councilmember Merkel engaged in conduct that is contrary to
City adopted Council Conduct Standards, including but not limited to City Council's social media policy,
and (2) deny Councilmember Merkel any City fimded legal representation in connection with APP-2024-
0001 pursuant to SVMC 2.70.030(A) (5). Mayor Haley explained that Councilmember Merkel needed to
recuse himself due to the conflict of interest with the motion on the floor. Councilmember Merkel
disagreed with interpretation of the Governance Manual and the RCW explaining the need for recusal.
Mayor Haley asked once again that Councilmember Merkel recuse himself and he once again refused.
City Manager Hohman stated that council may carry on and that Councilmember Merkel may not vote,
ask questions or participate in the motion. Mr. Hohman stated that he may sit and listen but noted that any
other councilmember would have recused himself due to the conflict of interest. Councilmember Merkel
questioned why he was not able to participate and City Attorney Konkright stated that per the Governance
Manual and RCW and case law that due to the conflict of interest in the motion that he was not to
participate. City Manager Hohman went on to explain that this has been the most challenging year and
started out with issues from the beginning of the year and as we see tonight it is clear there is yet again
another violation of the rules. Mr. Hohman noted that Councilmember Merkel filed a timely appeal but
has not responded back regarding the hearing examiner request for date. Mr. Konkright explained the
legal reason for when the city would provide assistance with the legal costs to the councilmember and that
the investigators found he violated the conduct standards and the social media policy and stated that there
is the opportunity for them to have a city run account in order to capture the items and posts for public
records. Councilmember Merkel chose not to follow the Governance Manual rules and that when
provided with a declaration asking for public records, Councilmember Merkel chose to change the
wording on the declaration. Mr. Konkright also spoke about who should pay for the legal fees and that
while Councilmember Merkel has the right to have an attorney for the appeal, it is not a requirement that
the city pay for the representation. Mayor Haley invited public comment. Mr. Ben Lund, Spokane Valley,
Ms. Marvel Travis, Spokane Valley provided comment. Councilmember Yaeger thanked staff for
bringing this matter it to their attention and stated that Councilmember Merkel had not had to deal with
any consequences and will not be in favor of paying for the legal costs and noted that all of this could
have avoided this with a page freezer with an account through the city. Councilmember Padden noted that
it was extremely clear that the city is prohibited from paying his fees and she will not rehash the details,
but he violated the public records act. Councilmember Higgins noted that Councilmember Merkel calls
himself the victim and it is by his own doing, we are dealing with a narcissistic behavior and may not
understand the right and wrong. Councilmember Wick noted that looking at the process, we have heard
good descriptions from staff and either way the city should not be paying for any of the legal costs. If
found guilty that should end the opportunity to have the costs covered. Mayor Haley spoke about the
training that they all received and should know better. Vote by acclamation: in favor: Mayor Haley,
Deputy Mayor Hattenburg, Councilmembers Wick, Padden, Higgins and Yaeger. Opposed: none. Motion
carried.
Councilmember Merkel poised a point of order and Mayor Haley asked to speak to the point.
Councilmember Merkel stated that he allowed a minority dissent. Mayor Haley stated that he was not as
he was not part of the previous motion and was not supposed to be in the room or part of the discussion.
ADMINISTRATIVE REPORTS:
3 Admin Report: Potential Grant Opportunity Commerce Grant & Housing Authority — Gloria Mantz
Ms. Mantz introduced Sarah Farr, Accounting and Finance Program Manager, Paul Trautman,
Development Manager with Spokane Housing Authority and Keith James, Development Lead with Inland
Group. Ms. Mantz provided background details of Connection Housing to Infrastructure Program (CHIP)
and that it was created in 2021 to fund utility connections for affordable housing. These funds are intended
to be supplemental project financing for necessary utility connection costs for affordable housing projects
in cities and counties that passed a sales and use tax for affordable housing or a housing levy. Eligible costs
Council Meeting Minutes, Fonnal: 09-24-2024 Page 3 of 5
Approved by Council: 11-26-2024
include the installation of onsite or offsite utility improvements such as drinking water, wastewater or
stormwater necessary for new affordable housing projects. Grant awards will be a maximum of $1 million
per project. A total of $12 million is available for this funding cycle. Though no match is required,
applicants must demonstrate that all funding to complete the project is committed prior to contract
execution. The grant applications are due October 31, 2024. Awards are anticipated to be announced in
January 2025. Ms. Mantz also spoke about the property that the used for the grant and that SHA would be
the owner and operator of the property, while the Inland Group would serve as the developer and general
contractor. Ms. Farr spoke about the obligations as applicant and that we would contract with Dept. of
Commerce, be the point of contact for the grant application, submission and process, and that we would
review the application materials and submit application. The city would also provide financial review even
though the city is not obligated to participate financially in the project. Ms. Farr also went over the grant
timeline and provided the next steps and stated that staff is looking for consensus to bring back a motion
consideration to apply for the grant in early October 2024. Council discussed various topics that included
staff time, the legalities of the city submitting the grant, the sustainability of the housing, and the application
process for the potential residents. Consensus was provided by six councilmembers to proceed with the
grant process.
5. Admin Report: 2025 Budget — Estimated Revenue & Expenditures — Chelsie Taylor
Chelsie Taylor, Finance Director provided a PowerPoint presentation with an overview of the current
budget standings and the 2025 budget summary of all funds. Ms. Taylor provided details on the 2025
revenues and expenditures. There was a review of the FTE's for 2025 and City Manager Hohman explained
the staff overview and that there is constant review the open positions and see if they are still necessary.
Currently there are two open positions that they are not going to replace. Ms. Taylor provided a review of
the general fund, property tax, general sales tax, review the revenue sources and where the funds are
currently sitting, budget challenges note that revenue growth not keeping pace and law enforcement
positions and transportation funding and homeless and housing program. Ms. Taylor also reviewed the 2025
budget timeline and noted that everything currently presented is in draft form and will be until November
when the final document is presented for approval. Deputy City Manager Lamb spoke about the new
position of a public safety coordinator and provided a background and the need for the position. There are
multiple contracts that require maintenance and review often. Council discussed the potential new position
and what it would like to fill that position as well as the components for that position. Council also discussed
the increases in costs for public safety and the need to review and continue to find efficiencies in the
contracts.
4. Admin Report: Proposed Ordinance Adopting; 2025 Property Taxes — Chelsie Taylor
Finance Director Taylor reviewed the background on prop taxes in WA state and provided information on
the senior exemption program. She also provided details on what it would look like if council chose to take
the 1% increase allowed by state law which would roughly be $138,060.00. Ms. Taylor also reviewed the
options given to council to bring forward the ordinance with the 1 % increase or without. Council discussed
the options and provided consensus to return without the 1 % included in the ordinance for property taxes
for 2025.
5. Admin Report: LTAC application request — Mike Basinger
Mike Basinger, Economic Development Director provided a project summary, project milestones, survey
results, what is underway in the project, staging area/parking lot, utilities, future amenities, construction
timeline, funding for the project - current and future, photos of the projected course and how it would be
utilized. Mr. Basinger closed his presentation with a video of the projected course. Council discussed the
variety of grass that would be used and if security cameras would be placed within the park. Council all
provided consensus to return with a motion for the application.
6. Admin Report: Opioid Funding Discussion — Erik Lamb
Mr. Lamb provided background on the current settlements and the funding from those settlements. To date,
roughly $102K has been received and the funding will continue until 2038 with a projected total of $336K.
Council Meeting Minutes, Formal: 09-24-2024 Page 4 of 5
Approved by Council: 11-26-2024
Mr. Lamb reviewed the options for the use of the funds that included providing funding to the stabilization
center, the dashboard info for the police, and a needs assessment effort by the health district. Council
discussed multiple topics on the stabilization center and the need to assessment to see what and where
funding should be allocated. Consensus was given to provide $16,900 for the health department opioid
dashboard data, and the $40,300 for the needs assessment and the remaining funding to the stabilization
center for capital and operations use. Councilmember Yaeger poised a point of privilege and stated that
she had a question for Councilmember Merkel. Mayor Haley stated that he did not need to answer the
question if he chose not to. Councilmember Yaeger asked why he did not vote to provide consensus to
move forward on the Commerce grant. Councilmember Merkel chose to answer the question and stated that
he thought all of our funds should go towards police and he would not support any additional grants.
INFORMATION ONLY (will not be reported or discussed)
8. Department Monthly Reports
9. Fire Dept Monthly Report
GENERAL PUBLIC COMMENT OPPORTUNITY:
After Mayor Haley explained the process, she invited comments from the public. No comments were
provided.
ADVANCE AGENDA
Councilmember Wick asked for a report on where we are on the NLC membership. Mayor Haley noted that
we haven't seen a lot of benefit from them and looking for funding for roads and police and need to cut
things out. There was not consensus to continue the membership with the NLC.
Councilmember Merkel asked for a comprehensive review of codes for group homes, building codes in
group homes and to adjust those codes for our community.
City Manager Hohman noted that modifying building codes is not an option and that we should not focus
on things that can't be changed as it is not a good use of time, but staff is looking into other options and will
bring a report forward at a later date. There was not consensus to move that item forward.
CITY MANAGER COMMENTS
City Manager Hohman noted that Councilmember Merkel needs to get back to the hearing examiner
regarding a date for the appeal hearing. Mr. Hohman congratulated staff on the exit conference as there
were no findings and that the finance department is doing a great job with our state audits. In closing, Mr.
Hohman spoke about the dedication of the soccer pitch and thanked the Rave foundation, Seattle Sounders,
Delta, and our community for coming to the event.
It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn at 8: 54 p.m
AD ST:
Marci atterson, City Clerk
Pam Haley, Mayor
Council Meeting Minutes, Formal: 09-24-2024
Approved by Council: 11-26-2024
Page 5 of 5
PUBLIC COMMENT SIGN -IN SHEET
SPOKANE VALLEY CITY COUNCIL MEETING
Tuesday, September 24, 2024
6:00 p.m.
GENERAL PUBLIC COMMENT OPPORTUNITY
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Please sign up to speak for up to THREE minutes and the Mayor will afford the public the opportunity to
speak. The public comment opportunity is limited to a maximum of 45 minutes.
NAME TOPIC YOU WILL SPEAK
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