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2025, 04-29 Formal B MeetingMINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, April 29, 2025 Mayor Haley called the meeting to order at 6:00 p.m. The meeting was held in person 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 Rod Higgins, Councilmember Chelsie Walls, Finance Director Laura Padden, Councilmember Gloria Mantz, City Services Administrator Jessica Yaeger, Councilmember Kelly Konkright, City Attorney Ben Wick, Councilmember John Bottelli, Parks & Rec Director Al Merkel, Councilmember Robert Blegen, Public Works Director Jill Smith, Communications Manager Tony Beattie, Senior Deputy City Attorney Sean Walter, Assistant Police Chief John Whitehead, HR Director Mike Basinger, Economic Development Director Steve Roberge, Planning Manager Dan Domrese, Accounting Manager Lori Barlow, Senior Planner Justan Kinsel, IT Specialist Marci Patterson, City Clerk INVOCATION: PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: City Clerk Patterson called roll; all Councihnembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited public comments. Bob West, Spokane Valley; Laura Renz, Spokane; Jim Rowse, Spokane Valley; John Harding, Spokane Valley all provided comments on various topics. ACTION ITEMS: 1. Resolution 25-008: Camera Policy — Erik Lamb It was moved by Deputy Mayor Hattenburg, seconded and to pass Resolution No. 25-008 adopting a security camera use policy. Mr. Lamb provided details on Resolution 25-008 for the camera use policy that included an overview on where cameras will be placed in the parks and throughout the city, a record of who is accessing the camera footage and cameras, and a footage retention schedule. Mr. Lamb also spoke about the need for cameras, such as safety in the parks and protecting our assets in the parks. Council discussed the third party access to the information and footage, limiting the views of the camera angles, and if code Council Meeting Minutes: 04-29-2025 Page 1 of 4 Approved by Council: 07-08-2025 enforcement would utilize the camera footage for code violation complaints. Mayor Haley invited public comment. John Harding, Spokane Valley provided comment. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried 2. Resolution 25-009: Surplus Property — Chelsie Walls, Dan Domrese It was moved by Deputy Mayor Hattenburg and seconded to approve Resolution 25-009 declaring as surplus certain personal property of the City. Ms. Walls, Finance Director and Mr. Domrese, Accounting Manager provided details on the need for the items to be suplused. Council did not have any questions or comments. Mayor Haley invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. 3. Motion Consideration: Appoint Pro/Con Committee Members — Erik Lamb Mayor Haley It was moved by Deputy Mayor Hattenburg and seconded to approve move to confirm the Mayoral appointments to the Pro and Con Statement Cormnittees for the Public Safety Sales Tax Ballot Measure as listed below: Pro Committee: Schade demeson-David Maghan, Cary Driskell, Melinda Seymour. Con Committee: Rodney Tadlock. Mr. Lamb spoke about the requirements for forming the committees and noted that Mr. Maghan withdrew his name as he moved out of the city and would no longer be participating in the committee. Mayor Haley invited public comment; no comments were provided. Councilmember Merkel stated that this tax was a huge mistake. Councilmember Yaeger poised a point of order and noted that this was for the pro/con committee formation and not a vote on the tax. Mayor Haley agreed. It was moved by Deputy Mayor Hattenburg and seconded to call for the question. Vote by acclamation on calling for the question: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councilrnembers Higgins, Merkel, Padden and Yaeger. Opposed.• Councilmember Wick. Motion carried. Mayor Haley called for a vote on the original motion. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. 7. Admin Report: Resolution 25-010: Spokane Housing Authority Bond - Gloria Mantz Ms. Mantz introduced John Chadburn, Director of Asset Management with Spokane Housing Authority. Ms. Mantz and Mr. Chadburn reviewed the process of issuing its revenue bonds for the affordable housing units that will be located at 9910 E. Appleway Blvd. Mr. Chadburn went over the project details for the 240-unit affordable housing project and noted that due to an IRS code there is a requirement of the approval of the issuance of the revenue bonds. Ms. Mantz noted that with city approval it does not obligate the city with any financial responsibilities for the bonds or any financial liability for SHA's repayment of the bonds. Council provided consensus to return at a future meeting with a motion consideration to approve the resolution. NON -ACTION ITEMS 4. Admin Report: STV-2025-0001 Update — Lori Barlow Ms. Barlow provided a PowerPoint presentation on the Appleway Alley street vacation that included details on the location of the requested street vacation, the adjacent property ownership, the applicants reason for the street vacation request, the process for the vacation, the public hearing, noticing, the agency comment and conditions, the existing utilities in the Right -of -Way, and the city department comments. Council provided consensus to move forward with the Ordinance first reading at a future meeting. 5. Admin Report: 2025 Budget Amendment — Chelsie Walls Ms. Walls provided details on the 2025 Budget Amendment and noted that the amendment affected 13 funds overall. She detailed the $3.5million in transfers and noted that the packet provided additional details to show the line items. Ms. Walls also gave additional details on the General fund revenues increase of $1.6 million, Street O&M fund revenues decrease of $985K, Hotel/Motel Tax- tourism facilities fund increase in revenues of $500K, expenditures of $2.5 million in transfers out, Hotel/motel fund decrease of net $0 in expenditures, solid waste fund $158,000, TBD Fund $985,000, REET Capital Projects fund $505,000, Street Capital projects fund $530,000, Park Capital Projects Fund $1.79 million, Capital Reserve Fund $1.67 million, Economic Development Capital Projects Fund $2.5 million, and the Public Safety Equipment Replacement Fund $650,000. Council questioned the balance in Fund 312. Councilmember Yaeger spoke about the complaint that had been filed and hoping that a reasonable person would approve to follow the rules. Councilmember Merkel poised a point of order and stated that she need to speak to the item. Council Meeting Minutes: 04-29-2025 Page 2 of 4 Approved by Council: 07-08-2025 Councilmember Yaeger noted that she was getting there and pointed out funding that has been spent in order to try and get Councilmember Merkel to comply and that additional public safety items could have been purchased with those funds and that it is corning back to bite him in the ass. Councilmember Merkel poised a point of order and stated that Coucnilmember Yaeger needs to have decorum and not use a curse word. Mayor Haley asked what word and when told she asked that we all have decorum moving forward. Councilmember Wick spoke about the public safety elements for funding and Mayor Haley added that the Fund 312 is not a slush fund that is used for anything and that it is funding dedicated for specific uses and noted that staff didn't take raises and knew that money was going to be tight going into the next budget cycle. Councilmember Padden noted that this is not a vendetta, and citizens have filed PRR's and have a right to that and that is what the lawsuit is about. Councilmember Merkel poised a point of order stating that he was chastised for not speaking to the point and that Councilmember Padden was not on the topic. Mayor Haley noted that the lawsuit was city business and asked Clerk Patterson for a ruling. Clerk Patterson noted that they should stick to the items in the budget and stay on topic of what is being presented. Council then provided consensus to return with a motion consideration at a future meeting. 6. Admin Report: CenterPlace Report Discussion — Erik Lamb, John Bottelli Mike Basinger Mr. Lamb, Mr. Bottelli and Mr. Basinger presented a PowerPoint presentation regarding the Johnson Consulting review for a tourism strategic plan and project development prioritization of CenterPlace. The presentation included an overview of the study goals and process of the study, the key findings of the study, and recommendations of the study. Mr. Lamb detailed the SWOT analysis, the evaluation of the historical and current performance of CenterPlace, noted that CenterPlace is a community asset, provided data on the operations/attendance of CenterPlace, the tourism asset being the great location of CenterPlace in our community, benchmark facilities analysis, a key finding that the rental rates are too low, the need for updated reservation software, need more audio and visual items to get more bookings. Mr. Basinger spoke about the events at the West Lawn and coordinating with Parks and Rec to bring Economic Development events to the West Lawn area at CenterPlace. Council spoke about concerns with purchasing new software with current budget issues, the number of rentals in the Great Room, using tourism funding to offset rental costs, utilizing the Senior Center, the follow up that is done after each event and the surveys done to maintain quality service. Mayor Haley called for a recess at 7:52pin for 8 minutes and that the meeting would resume at 8:00pin. INFORMATION ONLY (will not be reported or discussed): GENERAL PUBLIC COMMENT OPPORTUNITY: Mayor Haley stated that the general public comment rules still apply and called for public comments. Jamie Shanahan, Spokane Valley; Mike Dolan, Spokane Valley provided comments. COUNCIL COMMENTS Councilmember Merkel spoke about the false information being spoken about at the meeting and that it was all a vendetta against him and we need to focus on public safety and that it is the number one priority and that the rest of the council was not doing that. Councilmember Wick noted that he appreciated the comments we received on the fireworks and the fire department and closed with stating that if a helicopter is spotted around the mall, it will be assisting with replacing units on the rooftop. Councilmember Higgins spoke about additional inaccurate information that was being displayed by Councilmember Merkel. Councilmember Padden spoke about holding a councilmember accountable for their behavior and their actions. Councilmember Yaeger spoke about filing the complaint against Councilmember Merkel and the negative behavior he has displayed. Deputy Mayor Hattenburg spoke about public safety and that it most definitely is our number one priority and that council has accomplished a lot with regard to hiring officers and looking forward to the next phase of more hiring. Council Meeting Minutes: 04-29-2025 Page 3 of 4 Approved by Council: 07-08-2025 Mayor Haley spoke about the fireworks and spoke about Councilmember Merkel and when he ran for office what he said while running for office. CITY MANAGER COMMENTS Mr. Hohman spoke about the fireworks issues that had come up and noted that he spoke with the fire department/district regarding additional information and would report back. Mr. Hohman asked City Attorney Konkright to provide accurate information on the lawsuit against Councilmember Merkel. Mr. Konkright spoke about information regarding the password to Councilmember Merkel's Nextdoor account and that the password does not give access to the account and we will not retrieve information as it is a 2- factor authentication and it requires access to a personal email address and the city will not be accessing any councilmember's personal email. Mr. Konkright also pointed out that the stating the "litigation can't end until trial" is not a true statement and that most cases don't ever go to trial. Mr. Konkright noted that we are not seeking money, just compliance, and that Mr. Merkel just needs to come into compliance and then a court order is not necessary. The litigation is still pending until relief is sought. Councilmember Merkel poised a point of order and said that is "Councilmember" Merkel. Mr. Konkright apologized for the error in title. Mr. Hohman provided information about utilizing the Fund 312 and that after 16 months into his tenure, Councilmember Merkel still has a lack of understanding on how the funds work. Mr. Hohman explained that many of those funds have been allocated and most of that is one time money and not having the reoccurring funds will not allow us to keep the officers on staff. Mr. Hohman moved on to provide an update on the Cross country course and gave details on the contingency fund and that there is $411,882 remaining and there is an option for course timing sleeves for $39,474.00 at various points in the course. Mr. Hohman asked if council would provide a consensus to allow for an expense of $39,474.00 of the contingency funds for the timing sleeves for the course. Council provided consensus for the expense for the cross course. It was moved by Deputy Mayor Hattenburg, seconded to adjourn into executive session for 20 minutes to discuss possible litigation and that no action would be taken upon return to council chambers. Vote by acclamation on calling for the question: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councilmembers Higgins, Wick, Padden and Yaeger. Opposed: Councilmember Merkel. Motion carried. Council adjourned into executive session at 8:30 p.m. At 8:50, Senior Deputy City Attorney Beattie stated that executive session would be extended by five minutes. Council returned to open session at 8:55 p.m. It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn. The meeting was adjourned at 8:56 p.m. AkJ ST: , 4 , �- 0 Marct atterson, City Clerk l Council Meeting Minutes: 04-29-2025 Approved by Council: 07-08-2025 Page 4 of 4 PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, April 29, 2025 6:00 p.m. GENERAL PUBLIC COMMENT OPPORTUNITY #1 e 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. You may only speak at one of the comment opportunities, not at both public comment opportunities NAME PLEA PRINT TOPIC YOU WILL SPEAK ABOUT YOUR CITY OF RESIDENCE v(�� Rd F're �s U Please note that once information is entered on this form, it becomes a public record subject to public disclosure. PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, April 29, 2025 6:00 p.m. GENERAL PUBLIC COMMENT OPPORTUNITY #2 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. You may only speak at one of the comment opportunities, not at both public comment opportunities NAME PLEASE PRINT TOPIC YOU WILL SPEAK ABOUT YOUR CITY OF RESIDENCE je� ry-) CI v i✓e /� v Please note that once information is enterer/ on this form, it becomes a public record subject to public disclosure. c O u ZN O0 O U aQ) X Q� D Q O V u ZL ruin c ci V O m z U o cn O N Z O � Z U u O V O 0 LL � O O N 00 0 Z z Q w o6 qO cn C) O 4 Ln u of � m cu N v x 0 0 c c� m oZi U1 0 Q N L Ln 00 L O � O N Z O N u c� c 2 O O u Vn L. C) Q. (1) a) QJ _CL) (/ ) .Q dA ca c O ru ~ a i v�i O bA Ln o 0 u Q F- 0 0 I— H C 4t _E� u *' aU ao c t u C O .1 N E C Q C O U L c O u / x O CO_ C O u L C 7 0 u Ln 0 uL 0 m 0 / u U v O d N U1 4- u U N 0 L d i-� .Q m u / 0 7 a. m 0 C: O N a U C N bA C C 0 u N N 0 U) N 0 N T U C v hD C ..F C O u Ln v E L 0 Ln N O N \ rn N CO C O O � ,_. 0) U (n J C a� m 0- E (B 0 � U 0) C C Spokane jVa11ey - 10210 E Sprague Avenue ❑ Spokane Valley WA 99206 Phone: (509) 720-5000 ❑ www.SpokaneValleyWA.gov Memorandum To: Mayor and City Council From: Virginia Clough, Legislative Policy Coordinator Date: April 28, 2025 Re: Gordon Thomas Honeywell — Government Relations Legislative Report —April 27, 2025 Please find attached the April 27 GTH — Government Relations' report following the adjournment of the 2025 session! As the report notes, the Governor has 20 days to sign bills and budgets into law that were delivered to him in the final five days of the legislative session. The Governor has the authority to veto the entirety of bills and veto full sections of bills; the Governor does not have the authority to veto specific sentences. Click here to track the Governor's bill action. The city fared pretty well on our budget requests and support items as follows: • Spokane Valley Sport Courts - $415,000 (requested $800,000) • Balfour Park Playground/Spray Park - $500,000 in WWRP local parks & $2,000,000 in Land Water Conservation (fully funded) • Partners INW awarded $515,000 for their resource center (requested $5.1 million) • Plantes Ferry Sports Complex - $1,000,000 (fully funded) • Spokane County Stabilization Center - $3,050,000 The funding/support requests that were not included in the final budgets: Barker/1-90 Interchange (requested $1 million - no new projects were funded) Support for helicopter units for Spokane County and 3 other counties (requested $10 million) Family Promise's FLASH program The report provides more detail on the final budgets and revenue bills and highlights four of the final bills passed including House Bill 2015 that establishes mechanisms to enhance funding for local law enforcement recruitment, retention, training, and public safety initiatives. The bill creates a supplemental criminal justice account, a local law enforcement grant program, and authorizes a local option sales tax for criminal justice purposes. Grant funds may be used to support hiring, training, and retaining law enforcement officers, peer counselors, and behavioral health personnel, with a focus on co -response teams and community policing efforts. Briahna is working to finalize a chart of the revenue bills that will be shared once she is able to more thoroughly review all the final documents. The end of session report is scheduled to take place at the May 13 Council meeting. My thanks to the Council for supporting our legislative efforts and our staff for providing valuable feedback on the bills prior to and during the session. GORDON THOMAS HONEYWELL GOVERNMENTRELATIONS Sine Die Report April 27, 2025 The Legislature adjourned sine die on the 105th day of session, April 27. The final week of the legislative session was filled with sadness, tension, and procedural commotion. Legislators have been completing their final tasks on bills and budgets while mourning the passing of Sen. Bill Ramos (D-Issaquah). House Republicans utilized several procedural maneuvers to oppose revisions to parents' rights in schooling, rent regulation, and the closure of two facilities that serve individuals with developmental and intellectual disabilities. Additionally, Rep. Jeremie Dufault (R-Selah) was banned from voting on the House Floor after yelling at the Speaker following a procedural ruling. Legislators on both sides of the aisle expressed an array of emotions as they voted on one of the largest tax increases the state has seen since the 1990s. Now that the Legislature has adjourned, the Governor has 20 days to sign bills and budgets into law that were delivered to him in the final five days of the legislative session. The Governor has the authority to veto the entirety of bills and veto full sections of bills; the Governor does not have the authority to veto specific sentences. Click here to track the Governor's bill action. Funding Requests Capital Budget Project House Senate Final Budget Spokane Valley Sport -- $415,000 $415,000 Courts Balfour Park WWRP Local Parks - WWRP Local Parks - WWRP Local Parks $500,000 $500,000 -$500,000 $2 million in Land Water $2 million in Land Water $2 million in Land Conservation Conservation Water Conservation Partners INW Resource $515,000 -- $515,000 Center Plante's Ferry Sports -- $1,000,000 $1,000,000 Complex Spokane Valley Heritage $225,000 -- $206,000 Museum Freedom Center $338,000 $338,000 $338,000 GTi H-GOV 1 Inland Grange -- $98,000 $98,000 Mission Ave Frontage -- $1,030,000 $1,030,000 Improvements Newman Lake -- $120,000 $120,000 Revitalization Spokane County $3,050,000 $3,050,000 $3,050,000 Stabilization Center Transportation Budget House Senate Final Budget Project Barker 1-90 Interchange -- Included in "new No new project project" list; funding funding included amounts and phasing in final budget TBD Final Budgets 2025-27 Operating Budget: The Legislature faced a $15 billion Operating Budget deficit over the next four years, largely driven by a nearly $11 billion increase to maintain current programs and meet statutory requirements for program expansion. However, revenue growth has slowed. Between fiscal year 2022-24, revenues grew 5.2 percent annually; starting in fiscal year 2025, the annual growth rate is expected to reduce to 3.5 percent. The final 2025-27 Operating Budget relies on a combination of program cuts and $4.4 billion in revenue from new tax increases. See the attachment with a chart of the various revenue proposals. Over the four year outlook, the new taxes will generate $9.5 billion in revenue. In the 25-27 budget, $6.8 billion is allocated to maintain existing services such as K-12 staff salary inflation, and forecasted caseload and per -capita costs in child care, low-income medical assistance, and long-term care services. The budget leaves $2.3 billion in reserves, including $2.1 billion in the Budget Stabilization Account, often referred to as the Rainy Day Fund. Some notable components of the proposed Operating Budget include: • All state -shared revenues are maintained, including liquor profits and taxes, cannabis taxes, county criminal justice assistance, and the city -county assistance account. • $100 million in public safety grants • $27.2 million is allocated to the Office of Public Defense for grants to counties and cities (cities receive about 10 percent of these funds) • $25 million for utility assistance for low-income households • $62 million for -the building, operation, and maintenance of permanent supportive housing costs; $117 million for the operation of homelessness housing programs, including shelter; $100 million for Consolidated Homelessness Grants; $90 million to house individuals residing in encampments • $200 million for the Covenant Homeownership Program GTH-GOV 2 • $18 million in GMA Implementation Formulaic Grants (previously $20 million was allocated) 2025-27 Capital Budget: The 2025-27 Capital Budget appropriates $4.5 billion in new bond capacity and $7.5 billion in total funds, including cash, federal funds, and other revenue sources. The Capital budget provides investments in infrastructure that are relevant to local governments, including: • $605 million for the Housing Trust Fund • $365 million for the Public Works Assistance Account to finance infrastructure projects for cities, counties, and special purpose districts • $81 million for the Community Economic Revitalization Board to assist communities with financing publicly owned economic development infrastructure improvements to encourage new business development and expansion. 2025-27 Transportation Budget: Prior to the session, budget writers indicated that the Transportation Budget faced a $1 billion shortfall in 2025-27 alone, and a multi -billion -dollar shortfall over the next six years, largely driven by increases in project costs. The Legislature raised revenue to generate $3.2 billion over the next six years. Additionally, the state transfers a portion of state sales tax revenue (.1 percent of 6.5 percent) to the Transportation Budget starting in fiscal year 2028 to generate additional money. This is more money for transportation than was proposed by the House, and less money than what was proposed by the Senate. As a result, the final transportation budget does not fund any new projects but also does not delay projects as significantly as was proposed by the House earlier in the session. Legislation Bills receiving action during the final week of the legislative session. Rent Stabilization: House Bill 1217, sponsored by Rep. Emily Alvarado (D-34th LID), limits rent increases to 7 percent, plus inflation, or 10 percent, whichever is less. After the first 12 months of tenancy, it prohibits increases during the first year and establishes stricter notice requirements for rent hikes. Exemptions apply to newly constructed units (less than 12 years old), public housing authorities, nonprofit -owned properties, and certain owner -occupied units. The bill also caps security deposits and move -in fees at one month's rent, restricts late fees, and provides enforcement mechanisms allowing tenants to terminate leases without penalty for unauthorized rent increases. A challenge from the Senate Minority Leader, John Braun, forced a delay in the vote on the bill. The challenge argued that the bill was not drafted in compliance with Senate rules and violated Senate Rule 25 (one subject rule). A conference committee was established to realign the lengthy bill title with the intent of the bill, making some further adjustments before final passage on the final day of session. The bill becomes effective immediately upon the Governor signing it into law. Lot Splitting: House Bill 1096, sponsored by Rep. Andrew Barkis (R-2nd LID), facilitates administrative lot splitting to expand middle housing and affordable ownership opportunities in cities under the Growth Management Act. The bill streamlines the process by allowing GTH-GOV residential lots to be split into two through administrative review without public hearings, provided conditions such as compliance with development regulations, renter displacement mitigation, and restrictions on further splitting are met. Cities with comprehensive plan updates due in 2027 must incorporate the requirements into their next update, while others must implement them within two years of the bill's effective date. Civil Asset Forfeiture Reform: House Bill 1440, sponsored by Rep. Roger Goodman (D-45th LD), establishes a unified framework to standardize civil asset forfeiture procedures, replacing existing processes across various statutes. Key provisions include extended deadlines for contesting forfeitures, shifting the burden of proof to seizing agencies to "clear, cogent, and convincing evidence," protections for innocent owners and community property interests, and revenue allocation prioritizing victim restitution and behavioral health programs. The act applies to seizures occurring on or after January 1, 2026. The House concurred in Senate amendments and passed final passage on April 24 with a vote of 58-37. The Senate passed the bill on April 23 with a vote of 28-20 after adopting floor amendments. Public Safety Funding: House Bill 2015, sponsored by Rep. Debra Entenman (D-47th LD), establishes mechanisms to enhance funding for local law enforcement recruitment, retention, training, and public safety initiatives. The bill creates a supplemental criminal justice account, a local law enforcement grant program, and authorizes a local option sales tax for criminal justice purposes. Grant funds may be used to support hiring, training, and retaining law enforcement officers, peer counselors, and behavioral health personnel, with a focus on co -response teams and community policing efforts. The House concurred in Senate amendments on April 22, and the bill passed final passage in the House with 55 yeas, 42 nays, and 1 excused. GTH-GOV 4