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2025, 04-22 Formal A MeetingMINUTES City of Spokane Valley City Council Regular Meeting Formal Format A Tuesday, April 22, 2025 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 Kelly Konkright, City Attorney Rod Higgins, Councilmember Tony Beattie, Sr. Deputy City Attorney Jessica Yaeger, Councilmember John Bottelli, Parks & Rec Director Ben Wick, Councilmember Robert Blegen, Public Works Director Al Merkel, Councilmember Gloria Mantz, City Services Administrator Chelsie Walls, Finance Director Dave Ellis, Police Chief Mike Basinger, Economic Development Director John Whitehead, Human Resources Director Virginia Clough, Legislative Policy Coordinator Sarah Farr, Accounting & Finance Program Mngr. Jenny Nickerson, Building Official Adam Jackson, Engineering Manager Lesli Brassfield, Tourism & Marketing Manager Jerremy Clark, Chief Signal Technician Teri Stripes, Economic Development Specialist Chad Knodel, IT Manager 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 Councilmembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Mattenburg, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS n/a COUNCILMEMBER REPORTS Councilmember Yaeger: had nothing to report. Councilmember Padden: went to a Chamber "Quality of Life" meeting, watched a video made by the county regarding the Real Time Crime Center, attended the wildlife symposium and they talked about drought and wildfires. Councilmember Higgins: stated that he had nothing to report. Councilmember Wick attended a legislative breakfast at air force base with the air guard, an MRSC meeting, a ribbon cutting for residential development, attended a trail clean-up for the Appleway Trail, and spoke about an NLC survey for infrastructure projects. Councilmember Merkel met with business owners on Argonne corridor. Council Meeting Minutes, Formal: 04-22-2025 Page I of 5 Approved by Council: 07-08-2025 Deputy Mayor Hattenburg: stated that attended a ribbon cutting for the residential development and toured the smart center for WM. MAYOR'S REPORT The Mayor provided an update on the STA meetings she attended and gave a Bloomsday update with shuttle services, and details on the delay on the north/south freeway. PROCLAMATIONS: Arbor Day Mayor Haley read the proclamation and Kendall May, Rec Coordinator accepted the proclamation on behalf of the city's parks and rec department and provided details on events planned around Arbor Day. GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public. Mr. Ben Lund, Spokane Valley provided general comments. CONSENT AGENDA: 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, April 22, 2025, Request for Council Action Form: $9,153,079.37. b. Approval of Payroll for Pay Period ending March 31, 2025: $717,756.44. c. Approval of Payroll for Pay Period ending April 15, 2025: $670,724.68. d. Approval of Council Meeting Minutes of March 18, 2025 e. Approval of Council Meeting Minutes of March 18, 2025 Special Mtg f. Approval of Council Meeting Minutes of April 1, 2025 g. Approval of Council Meeting Minutes of April 8, 2025 It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the Consent Agenda. ACTION ITEMS: 2. Motion Consideration: ILA for Aquifer Protection Area — Erik Lamb, Robert Blegen Adam Jackson It was moved by Deputy Mayor Hattenburg and seconded to authorize the City Manager to execute the Interlocal Agreement with Spokane County in substantially the form presented for the uses and allocations ofAquifer Protection Are revenues for 2026 through 2045. Mr. Lamb, Mr. Blegen, and Mr. Jackson provided details on the ILA for the Aquifer Protection Area. Mr. Lamb provided a brief background in the details of the funding and Mr. Blegen spoke about the APA program for the city. Council questioned the 30% fund and Mr. Jackson detailed that the RCW allows for certain uses such as monitoring, testing, education and outreach and permit requirement from the Dept of Ecology. There is also a programmatic portion of running the system. Councilmember Merkel questioned if it would be a tax increase and Mr. Lamb noted that it is a renewal. Mayor Haley invited public comments. Diana Wilhite, Spokane Valley; John Harding, Spokane Valley; Mike Dolan, Spokane Valley provided comments. Vote by acclamation: in favor: Unanimous. Opposed.- None. Motion carried 3. Resolution 25-007: Aquifer Protection Area — Erik Lamb Robert Blegen Adam Jackson It was moved by Deputy Mayor Hattenburg and seconded to pass Resolution 25-007 authorizing the inclusion of the municipal boundaries of the City of Spokane Valley within an Aquifer Protection Area. Mr. Lamb explained that council had approved the ILA and now the Resolution needs to be adopted. Mayor Haley invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. 4. Motion Consideration: Affordable Housing RFP - Gloria Mantz, Sarah Farr It was moved by Deputy Mayor Hattenburg and seconded to approve the Affordable and Market Rate Housing RFP award for the property located at 228 S Carnahan to Habitat for Humanity and to authorize Council Meeting Minutes, Formal: 04-22-2025 Page 2 of 5 Approved by Council: 07-08-2025 the City Manager or designee to finalize and execute an agreement and to carry out the terms of the agreement once executed,- or take other action deemed appropriate. Ms. Farr provided a brief background on the RFP and the properties and what would be proposed by Habitat for Humanity. Councilmember Merkel noted that Millenium Northwest provided a privately funded and Habitat for Humanity noted their project would require grants. Mr. Hohman noted that it was not a question for staff and that is more of a comment than a question. Councilmember Padden noted that it doesn't make a difference as they have a great model and have done business well for years. Mayor Haley invited public comments. John Harding, Spokane Valley; Mike Dolan, Spokane Valley provided comments. Councilmember Yaeger noted that Habitat for Humanity keep people in their homes and we also need to balance to be able to provide additional homes. Councilmember Merkel disagreed and stated that this is not a good use of fiends. Councilmember Wick stated Habitat for Humanity funding is not in jeopardy of being taken back and we are only in for the purchase of the land and this is our way to help facilitate investment in the community. Deputy Mayor Hattenburg noted that people in the neighborhood asked what can we do to help and this is the first step in that assistance. Mayor Haley noted that the funding is to be used for homelessness and affordable housing and we are helping to revitalize that neighborhood. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councihnembers Wick, Higgins, Padden and Yaeger. Opposed.- Councihnember Merkel. Motion carried It was moved by Deputy Mayor Hattenburg and seconded to approve the Affordable and Market Rate Housing RFP award for the property located at 4908 E 1st Ave to Habitat for Humanity; and to authorize the City Manager or designee to finalize and execute an agreement and to carry out the terms of the agreement once executed; or take other action deemed appropriate. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. 5. Motion Consideration: Kemira Agreement — Robert Blegen Kristen Armstrong It was moved by Deputy Mayor Hattenburg and seconded to authorize the City Manager to finalize and execute the Agreement benwen Kemira Water Solutions, LLC and the City for the Sulivan Waterline Project. Mr. Blegen and Ms. Armstrong provided a brief background on the agreement and explained the cost difference. Council discussed the need for the agreement and that Kemira was looking forward to moving forward with the project and getting the water line. Mr. Hohman noted that this is a code violation that Kemira has been dealing with for years and a solution is what staff has brought forward tonight. Councilmember Merkel questioned the need for the water line as the dance hall is the only facility on the property and Mr. Hohman stated that yes it was necessary as it is an 11-acre parcel that could be used for additional development. Mayor Haley invited public comments. John Harding, Spokane Valley; Mike Dolan, Spokane Valley; Ben Lund, Spokane Valley provided comments. Councilmember Wick thanked Kemira for the efforts and contribution to the project. Councilmember Merkel questioned the process and staff working on the agreement and the economic development being previously discussed. Councilmember Higgins poised a point of order and asked if we were speaking to the topic or beating up on the City Manager. Mayor Haley agreed and noted that we are not here to beat up on staff. Councilmember Merkel noted that in his mind, he didn't understand what we are getting out of this agreement. Councilmember Higgins poised a point of order and stated that this information is all in the packet. It was moved by Councihnember Yaeger and seconded to call for the question. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councihnembers Wick, Higgins, Padden and Yaeger. Opposed: Councihnember Merkel. Motion carried Mayor Haley called for the vote on the original motion. Vote by acclamation: in favor. - Mayor Haley, Deputy Mayor Hattenburg, Councihnembers Wick, Higgins, Padden and Yaeger. Opposed.- Councilmember Merkel. Motion carried 6. Motion Consideration: Sullivan Waterline Bid Award — Robert Blegen Kristen Armstrong It was moved by Deputy Mayor Hattenburg and seconded to mvard the Sullivan Waterline Project #0328 to Colville Construction Inc. in the amount of $1,250,712.00 plus applicable sales tax and authorize the City Manager to finalize and execute the construction contract. Mr. Blegen provided details on the plans and noted that Colville Construction was the lowest bidder. Mr. Blegen pointed out that the cost difference in the engineer's estimate was for the boring for the project. That was under the railroad and there were additional costs due to that. Councilmember Merkel questioned if Colville Construction has performed this kind of work before and Mr. Blegen noted that the company had indeed done this kind of work in past Council Meeting Minutes, Formal: 04-22-2025 Page 3 of 5 Approved by Council: 07-08-2025 projects. Mayor Haley invited public comments; no comments were offered. Vote by acclamation: in fcn�or: Mayor Haley, Deputy Mayor Hattenburg, Councihnembers Wick, Higgins, Padden and Yaeger. Opposed: Councilmember Merkel. Motion carried NON ACTION ITEMS: 7. Admin Report: EWU Quarterly Economic Trends Report — Mike Basinger Teri Stripes Mr. Basinger provided an introduction of Ms. Teri Stripes, our new Economic Development Specialist. Ms. Stripes provided an introduction of Dr. Kelly Cullen. Dr. Cullen provided details of the quarterly economic indicators for the city that included an overview of the demographics, labor markets, employment residential construction, and taxable sales and revenue. She reviewed age, race and ethnicity with the population, update on the monthly unemployment count and rate. Dr. Cullen provided more specific details on housing, housing prices, building permits, and housing affordability index. Council discussed the number of rentals impacting pricing and rental costs and the overall vacancy rates of the apartment complexes. 8. Admin Report: CTA-2024-0002 & Right-of-way Permit Update — Tony Beattie Jerremy Clark Jenny Nickerson Mr. Beattie provided a PowerPoint presentation that included details on a review of the right of way permits, review the proposed amendments to chapters 22.130 and 17.80, review proposed amendments to chapters 9.50 and 7.05. Council discussed potential time limits and had no further questions. Council provided consensus to come back at a future meeting with a first reading of an Ordinance. INFORMATION ONLY (will not be reported or discussed) 9. Homeless Regional Coordination ILA 10. Surplus Resolution 11. Department Monthly Reports 12. Fire Dept Monthly Report GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public. Mike Dolan, Spokane Valley; John Harding, Spokane Valley; Daryl Williams, Spokane Valley provided comment. ADVANCE AGENDA Councilmember Merkel noted that there were bills of concern regarding the public employee pension plans and could it be added to our legislative agenda. City Manager Hohman noted that we know council is concerned with this item and staff is monitoring that as the state is going back and forth on various items at this point. Councilmember Merkel asked about the legislative agenda and adding the maintenance of the signs on WSDOT roads and lobby the state to take care of the signs. There was not consensus to move that request forward. CITY MANAGER COMMENTS City Manager Hohman stated that staff are working with Spokane County on Glenrose floodplain issues. We do have a draft map that we are working with the consultant on. There will be a meeting on Thursday May 1 st at the Conservation District. Mr. Hohman also provided a brief update on the cross course. He also thanked EWU for the leadership panel discussion he was part of earlier in the day and noted it was a good community engagement event. EXECUTIVE SESSION It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn into executive session for 10 minutes to discuss potential litigation, and that no action ivill be taken upon return to open session. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councibnembers Wick, Higgins, Padden and Yaeger. Opposed• Councilmember Merkel. Motion carried. Council adjourned into executive session at 8: 20p.m. Senior Deputy City Attorney Beattie requested an extension offive minutes for Council Meeting Minutes, Formal: 04-22-2025 Page 4 of 5 Approved by Council: 07-08-2025 the executive session. Deputy Mayor Hattenburg declared Council out of executive session and made a motion to adjourn the meeting at 8:35p.m. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. ATT ST: l Marci atterson, City Clerk -7 Pam aley, Mayor Council Meeting Minutes, Formal: 04-22-2025 Approved by Council: 07-08-2025 Page 5 of 5 PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, April 22, 2025 6:00 p.m. GENERAL PUBLIC COMMENT OPPORTUNITY #1 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 TOPIC YOU WILL SPEAK PLEASE PRINT ABOUT YOUR CITY OF RESIDENCE Please note that once information is entered on this form, it becomes a public record subject to public disclosure. 07� Spokane ,,;oo$;Valley® vTOCCdlllaiiDTC City of Spokane vaffey, Washington Arbor Day WHEREAS, Among the pioneers moving into the Nebraska Territory in 1854, was J. Sterling Morton from Detroit; he and his wife were lovers of nature and their new home in Nebraska was quickly planted with trees, shrubs, and flowers; and WHEREAS, On January 4, 1872, J Sterling Morton proposed to the Nebraska Board of Agriculture that a special tree planting holiday be set aside for the planting of trees, with that first date set for April 10, 1872; that first observed Arbor Day holiday included the planting of more than a million trees in Nebraska; and WHEREAS, The tradition began in schools nationwide in 1882, and in 1885 Arbor Day was named a legal holiday in Nebraska with April 22, Morton's birthday, selected as the date for its permanent observance; and WHEREAS, Today the most common date for the state observance is the last Friday in April, - and all 50 states as well as many countries, recognize Arbor Day in some manner; and WHEREAS, Trees can reduce the erosion of topsoil by wind and water, cut heat and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen and provide habitatfor wildlife; and WHEREAS, Trees are a renewable resource giving us paper; wood for our homes, fuel for our fires and beauty to our community,- and WHEREAS Trees in our city increase property values, enhance the economic vitality of business areas, and provide character to our community. NOW, THEREFORE, I, Pam Haley, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Council and the citizens of the City of Spokane Valley, do hereby proclaim Friday, April 25, 2025 as in the City of Spokane Valley, and I urge all citizens to celebrate Arbor Day, to support efforts to protect our trees and woodlands, and to plant trees for this and future generations' enjoyment. Dated this 22"d day of April, 2025. Pam Haley, May Spokane jValley- Memorandum To: Mayor and City Council 10210 E Sprague Avenue ❑ Spokane Valley WA 99206 Phone: (509) 720-5000 ❑ www.SpokaneValleyWA.gov From: Virginia Clough, Legislative Policy Coordinator Date: April 21, 2025 Re: Gordon Thomas Honeywell — Government Relations Legislative Report —April 18, 2025 Please find attached the April 18 GTH — Government Relations' report recapping the week of April 14. We've now entered the final week of the session, unless a special session is called. The Opposite Chamber cutoff for bills was last Wednesday, April 12 except for those bills necessary to implement the budget. There are still several bills awaiting concurrence and the big news (not included in the report) is that HB 1260 (document recording fees) was signed into law by the Governor this morning. The bill signing was attended by Rep. Schmidt and Chase and Briahna and you can view it here at the 6:40 mark. This week's report focuses primarily on the budget and a few of the key bills we've been following. As of this past weekend, the report notes that despite statements from the Governor, the Legislature seems likely to approve the revised revenue. If that occurs, the Governor will need to choose whether to veto revenues and evaluate whether and when to convene a special session. The Governor can convene a special session at any point; once he has called a special session of the Legislature, it lasts 30 days or until the Legislature adjourns that session. In addition, the report lays out the revenue proposals for 2025-2027 and the four-year outlook. We anticipate knowing the outcome of our city's funding requests when final budgets are released this week. GORDON THOMAS HONEYWELL GOVERNMENT RELATIONS City of Spokane Valley Legislative Report April 18, 2025 SESSION CUTOFF CALENDAR FebFuary 21, 2025 DnllG\/ Committee Deadline FebruaFy 28, 2025 Ronal ('nmmittee Deadline MaFG�22025 GharnbeF_of_OFinin Deadline r-cpr- April 7, z '2e5 Oppesite Chamber Pe"Gy Gemmittee Deadlipn ri April Opposite GhambeF PSGal Committee Dead! no Apri�2025 Opposite Chamber Deadline April 27, 2025 Session adjourns - Sine Die Weekly Overview With a little more than a week remaining, the Legislature is focused on finalizing budget proposals and reconciling amendments to bills made by the opposite chamber. Final budget proposals will be released early in the final week of the legislative session. On Tuesday, budget leaders unveiled a revised revenue package aimed at reducing reliance on the wealth tax proposal (Senate Bill 5797), which faced opposition from Governor Ferguson. While the original package sought to raise approximately $16 billion over the four-year outlook, the newly released proposal targets around $12 billion in revenue. Additional details can be found in the chart below (revenue numbers are based on initial proposals as briefed by nonpartisan staff, and exclude amendments made in committee). On Thursday, Governor Ferguson issued a statement criticizing the revised revenue package, characterizing the $12 billion target as "unsustainable" amid ongoing federal uncertainty. Citing FEMA's recent denial of emergency relief funding following November's bomb cyclone and the potential for future federal cuts to Medicaid, K-12 education, and child welfare services, the Governor warned that implementing new taxes at this time would be "too risky." Notably, despite the Governor's opposition, a narrowed version of the wealth tax proposal was amended and advanced out of the Senate Ways & Means Committee. The potential revenue impact of this narrowed version remains uncertain; however, it appears Democrats may be testing the tax's legal viability at a substantially lower rate. GTH-GOV 1 As of this writing, the Legislature seems likely to approve the revised revenue despite statements from the Governor. If that occurs, the Governor will need to choose whether to veto revenues and evaluate whether and when to convene a special session. The Governor can convene a special session at any point; once he has called a special session of the Legislature, it lasts 30 days or until the Legislature adjourns that session. Revenue Proposal 25-27 Budget Four -Year Outlook Capital Gains & Estate Tax - Senate Bill 5813 $183 million (FY $680 million Applies an additional 2.9% excise tax on an individual's Washington 2026) capital gains exceeding $1m (current rate is 7%); 7% rate is maintained for capital gains of $1m or less. Increases the estate exclusion amount to $3m (current exclusion is $2.193m) Provides an updated reference to the estate exclusion amount to the Consumer Price Index to allow for annual inflation adjustments. Increases the tax rates for Washington taxable estates of descendants dying on or after January 1, 2025. B&O Increases, Advanced Computing Surcharge Cap - House Bill $2.44 billion $6.4 billion 2081 Increases B&O tax rates for the following activities: .016% increase for: • Standard manufacturing, extracting, and wholesaling • Research and development by non -profits • Insurance agents, childcare, treatment of chemical dependency and services for salmon canners • Manufacturing, wholesaling, retailing of commercial airplanes, or components of airplanes • Both manufacturing of retailing of tooling, specifically for use in manufacturing commercial airplanes, or components of such airplanes • Printing materials - other than newspapers, and publishing periodicals or magazines; highway contractors; cold GTH-GOV 2 storage warehousing, radio or television broadcasting, and government contractors .029% increase for standard retailing and radioactive waste clean- up .3% increase for contests of chance - gambling .35% increase for the service and other activities B&O tax rate for businesses with gross income over $1m. B&O surcharge rates are increased for the following activities: .3% increase for the additional tax on financial institutions, 3.78% for the Advanced Computing Surcharge The Advanced Computing Surcharge annual cap is increased from $9m to $50m. An additional .5% B&O surcharge is imposed on taxpayers whose income exceeds $250M, with the following exceptions: Taxpayers who pay the specified financial institution surcharge; Manufacturing activities; Sale of food, food ingredients, food stamp purchases and prescription drugs. Excise Tax on ZEV Credits - House Bill 2077 $78 million (FY $280 million 2027) 2% excise tax is imposed on ZEV credits sold from one manufacturer to another. 10% excise tax is imposed on ZEV credits once carried over by a manufacturer to be used in a future model year. 10% excise tax is imposed on ZEV credits earned in WA and sold to a manufacturer in another state. $200 million $818 million State & local property tax cap - House Bill 2049 Changes the 1% revenue growth limit for state and local property taxes to adjust for population and inflation, capped at 3% Increases the maximum per -pupil limit used for school enrichment levies gradually over several years up to $5,035 in the 2031 calendar year Increase the per -student state Local Effort Assistance (LEA) threshold by $200 above inflation in 2026 and $300 above inflation in 2027 GTH-GOV Increases LEA thresholds by an additional $200 per -pupil in 2030 and 2031 $2.9 billion $4.7 billion Services & nicotine excise taxes; one-time prepayment state sales tax for large businesses - Senate Bill 5814 Extends retail sales and use taxes to the following specified services. The definition of these services are extended to any service that primarily involves the application of human effort by the seller, live presentations, advertising services and digital processing services: IT technical consulting services, IT training services and technical support, custom website development services, Custom software and customization of prewritten computer software, investigation, security services, security monitoring services, and armored care services, temporary staffing services, advertising services Expands the definition of nicotine products to include products that contain nicotine, whether derived from tobacco or created synthetically, and subjects them to the "other tobacco products" tax Requires taxpayers who file a monthly combined excise tax return with $3m or more taxable retail sales during the 2026 calendar year to make a one-time prepayment of state sales tax, which must be paid June 25, 2027. The payment must be equal to 80% of the state sales tax collected and remitted for June 2026 state sales tax. $103 million $254 million Modifies Tax Preferences for Certain Industries — House Bill 2084 Eliminates tax preference for the sale of precious metals and bullion. Imposes the business & occupation tax on the rental of self - storage units. This change may allow locals to also impose a B&O tax on storage facilities, which are currently not subject to B&O. Increases the B&O rate for warehousing and reselling of prescription drugs. Below are some local government -related bills that did not make it through the final April 16 cutoff and are no longer under consideration: GTH-GOV Senate Bill 5098 - Restricting the possession of weapons on the premises of state or local public buildings, parks or playground facilities where children are likely to be present, and county fairs and county fair facilities. Senate Bill 5576 - Providing a local government option for the funding of essential affordable housing programs. Senate Bill 5613 - Concerning the development of clear and objective standards, conditions, and procedures for residential development. Once a bill passes the Legislature, it is delivered to the Governor to sign into law, veto, or partially veto (he has the authority to remove entire sections of a bill, but not specific sentences). After the Legislature approves a bill, the Governor has five days, excluding Sundays, to act on it, unless the Legislature is within five days of adjournment when it approves the bill, in which case the Governor has 20 days to take action. Click here to view the bills that the Governor has signed into law to date. The final day of the 2025 Legislative Session is Sunday, April 27. Legislative Agenda Items We anticipate knowing the outcome of funding requests when final budgets are released next week. In the meantime, here is a reminder of the current status: Spokane Valley Budget Investments Capital Budget Project House Senate Spokane Valley Sport Courts -- $415,000 Balfour Park WWRP Local Parks - $500,000 $2 million in Land Water Conservation WWRP Local Parks - $500,000 $2 million in Land Water Conservation Partners INW Resource Center $515,000 -- Plante's Ferry Sports Complex -- $1,000,000 Spokane Valley Heritage Museum $225,000 -- Freedom Center $338,000 $338,000 Inland Grange -- $98,000 Mission Ave Frontage Improvements -- $1,030,000 Newman Lake Revitalization -- $120,000 Spokane County Stabilization Center $3.050 million $3.050 million GTH-GOV Transportation Budget Project House Senate Barker 1-90 Interchange -- Included in "new project" list; funding amounts and phasing TBD Clarify Administrative Fee Collected on Document Recording Fees At the City's request, House Bill 1260 was introduced by Rep. Suzanne Schmidt (R-4th LD), Rep. Timm Ormbsy (D-3rd LD), and Rep. Natasha Hill (D-3rd LD). The bill amends the distribution and administrative handling of document recording fee surcharge funds to enhance support for county and city homeless housing programs. This bill is a top priority for the Cities of Spokane Valley and Spokane as they are the only two cities known to be using this provision. The bill passed the Senate unanimously on April 10 and was signed by the Speaker of the House on April 11. The bill was delivered to the Governor on April 15 and is scheduled to be signed into law on Monday, April 21st. The City submitted a letter to him asking that he sign the bill into law. Other Policy Issues Fiscal Management Real Estate Excise Tax Flexibility: House Bill 1791, sponsored by Rep. Dave Paul (D-10th LD), harmonizes the allowable uses of REET 1 and REET 2 revenues. The bill increases flexibility by allowing REET funds to be used for maintenance and operations of existing capital projects, including affordable housing, without prior caps or restrictive reporting requirements. The bill allows REET to be used for regional affordable housing projects, as opposed to only those listed in a capital facilities plan. It also introduces a new tax exemption for the sale of "qualified space" in affordable housing developments to nonprofit organizations, housing authorities, or public corporations for community purposes such as health clinics or food banks. The bill passed the Senate on April 15 with 29 yeas, 19 nays; and 1 excused, and the House Speaker signed the bill on April 16. Housing Affordability Condominium Liability Reform: House Bill 1403, sponsored by Rep. Jamila Taylor (D-30th LD), proposes significant updates to condominium construction and defect resolution statutes. Key changes include differentiating warranty standards for condominiums created before and after the bill's effective date, requiring arbitration for certain claims involving post -effective -date condominiums, and introducing cost and attorney fee assessments in construction defect claims. The bill also excludes accessory dwelling units organized as condominiums from certain requirements and allows for express warranty options with specified coverage periods for certain types of condominiums. The House concurred with the Senate amendments on April 17, and the bill passed with a vote of 93 yeas, 2 nays, and 3 excused. GTH-GOV 6 Local Decision -Making Authority State Housing Oversight: Senate Bill 5148, sponsored by Sen. Jessica Bateman (D-22), creates a framework for the Department of Commerce to review housing elements and related development regulations submitted by cities and counties for compliance with statutory requirements, including housing goals, density bonuses, parking mandates, and affordability standards The House floor amendments replaced mandatory reviews with targeted reviews for up to 10 jurisdictions annually and shortened Commerce's review timeline from 120 to 90 days. The Senate concurred in House amendments and passed the bill off the floor on April 17, with a vote of 48 yeas, 1 nay. Preemption on Parking Requirements: Senate Bill 5184, sponsored by Sen. Jessica Bateman (D- 22nd LD), limits cities to requiring no more than 1 parking space per single-family home, .5 parking space per multifamily dwelling unit, and two parking spaces per 1,000 square feet of commercial space. The bill also prohibits minimum parking requirements for certain categories, such as affordable housing, senior housing, childcare facilities, and commercial spaces under 3,000 square feet, while ensuring that accessible parking spaces required by the Americans with Disabilities Act (ADA) remain unaffected. The bill as it passed both chambers does not apply to cities with a population of 30,000 or less. The parking limitations also do not apply if a city submits to the Department of Commerce, and Commerce certifies, an empirical study prepared by a credentialed transportation or land use planning expert that demonstrates that parking limitations will be significantly less safe for vehicle drivers. It requires the State Building Code Council to research and, if necessary, adopt updated parking space requirements to align with current research on disability rates among drivers. Cities with a population between 30,000 and 50,000 must implement requirements within three years, and cities with a population of 50,000 or greater must implement the requirements within 18 months. It allows a county to require off-street parking if the county's roads are not developed to the standards for streets and roads adopted by the cities within that county. The Senate concurred in House amendments on April 17 and passed a final version with 36 yeas, 13 nays, no absences, and no excused votes. Lot Splitting: House Bill 1096, sponsored by Rep. Andrew Barkis (R-2nd LD), mandates that cities integrate administrative approval of lot splits. The bill was amended on the Senate floor to expand lot -splitting provisions to all cities, mandate clear and objective development standards for application review, prohibit non -administrative design reviews, and require adherence to statutory permit timelines unless extended by mutual agreement. Additionally, the amendments clarify that lot split surveys for parent and newly created lots must include a notation prohibiting future lot splits from being recorded with the county auditor, rather than the county assessor, and exempt areas designated as sole -source aquifers by the EPA on islands in the Puget Sound from lot -splitting regulations. The Senate adopted floor amendments to the bill on April 14 with a vote of 43 yeas, 4 nays, 0 absent, and 2 excused. The bill must go back to the House for concurrence. Transit -Oriented Development: House Bill 1491, sponsored by Rep. Julia Reed (D-36th LD), requires cities to adopt regulations facilitating TOD in designated "station areas," including minimum floor area ratios and affordable housing requirements. It preempts local restrictions, GTH-GOV 7 limits local parking mandates, and provides exemptions from the State Environmental Policy Act for qualifying developments. Amendments adopted by the Senate authorize counties to grant property tax exemptions for multi -family developments in station areas that meet TOD density and affordability standards, redefine major transit stops, require cities to allow increased density and height for mass timber developments, modify affordability requirements and exemptions, clarify multifamily tax exemption (MFTE) provisions, mandate long-term affordability covenants, mandate reduction of transportation impact fees by 50% for qualifying projects, and make technical adjustments. Additionally, the Department of Transportation is required to review surplus property in counties with populations over two million operating municipal transit systems and select up to three park -and -ride facilities for a pilot program promoting TOD with specified density and affordability standards. The bill was passed by the Senate on April 15 following the adoption of floor amendments with 30 yeas, 18 nays, and 1 excused. The House will now need to concur with the Senate amendments. Miscellaneous Public Facilities District Sales Tax Credit Extension: House Bill 1109, sponsored by Rep. Cindy Ryu (D-32nd LD), extends the maximum duration for which public facilities districts can collect sales and use tax credits from 40 to 65 years. This extension applies to taxes used to finance or refinance regional centers and related facilities, providing districts with a longer timeframe to secure funding for these projects. The Senate adopted committee amendments reducing the extension from 65 years to 55 years and passed the bill with 43 yeas and 6 nays on April 14. Paid Family Leave: House Bill 1213, sponsored by Rep. Liz Berry (D-36), expands Washington State's Paid Family and Medical Leave (PFML) program by enhancing worker protections, modifying employer responsibilities, and providing financial support for small businesses. Key provisions include reducing the minimum claim duration for benefits from eight to four consecutive hours and requiring employers to provide written notice of employee rights after seven consecutive days of leave. Employers with fewer than 50 employees are eligible for grants to offset costs, such as hiring temporary workers or covering health care benefits during employee leave, though grant recipients will be assessed premiums for three years. The bill also requires employers to maintain health benefits for employees on PFML leave and imposes additional compliance requirements on employers with voluntary plans, including offering at least half the duration of leave provided under the state program with pay. The changes take effect on January 1, 2026. The Senate passed the bill off the floor with a vote of 28 yeas, 20 nays, 1 excused. On April 18, the House concurred with the Senate amendments. Public Safety & Behavioral Health Public Safety Funding: House Bill 2015, sponsored by Rep. Debra Entenman (D-47th LD), and developed by the Members of Color Caucus, establishes mechanisms to enhance funding for local law enforcement recruitment, retention, training, and public safety initiatives. The bill creates a local law enforcement grant program and an additional 0.1% local option sales tax authority for criminal justice purposes. The bill outlines several criteria an agency must achieve to be eligible for the grant program and use of the sales tax authority. Grant funds may be used GTH-GOV 8 toward a variety of public safety efforts including recruiting, funding, and retaining new law enforcement officers, peer counselors, and behavioral health personnel working as co - responders. Recruiting lateral hires is not an eligible use of these funds. Revenue generated from the optional sales tax can be used for criminal justice purposes, to include public defense staffing. To receive a grant, the jurisdiction must be located within a jurisdiction or have otherwise imposed the existing public safety or criminal justice sales taxes in current law, or impose the sales tax authorized within the bill. The Senate passed the bill with 30 yeas and 19 nays on April 16. Since the Senate made additional changes to the bill on the floor, the bill must go back to the House for concurrence. GTH-GOV 9 4.22.2025-C City Council Speech — April 22, 2025 Ben Lund — 36-Year Spokane Valley Resident To City Council, Mayor Haley, and City Leadership: Mayor Haley asked a critical question last week: Why the lawsuit? Let's start with this: Why do we have the Public Records Act? It exists to protect the First Amendment —ensuring the public has access to how elected officials respond to questions and engage with citizens. Not just those who follow them on social media- everyone. That's why this meeting is recorded —not for entertainment, but to comply with the law. So, why wouldn't Councilmember Merkel want that same transparency? Because he wants to control the narrative —twisting facts, deleting posts, and removing evidence that doesn't fit his agenda. But here's what he didn't anticipate: Citizens like me saving his posts —and those of his followers —and voluntarily submitting them, including yesterday's to Lukins & Annis. Not out of revenge, but to protect the truth. This effort has likely added another 500 to 1,000 pages of evidence for the judge to review. So again —why the lawsuit? To protect this city from financial catastrophe. On February 11th, Bob Roscoe from our insurance carrier stated that lawsuits involving public records violations in Washington typically cost $8 to $10 million each. There are currently 67 unfulfilled public records requests related to Councilmember Merkel. That's a potential liability of $536 million. Let that sink in—$536 million in exposure that Al Merkel's actions represent to our insurance company, and ultimately, to us —the citizens. Even if just three lawsuits are filed, that's still $24 million in real risk. This is why I thank the Mayor and Council for standing firm and putting Spokane Valley first. This lawsuit wasn't political —it was responsible governance. And to Councilmember Merkel's followers: If all you have are personal attacks and spin, it's because the facts aren't on your side. And Mr. Merkel —if your behavior continues, you could bankrupt this city. I won't let that happen. We won't let that happen. As Thomas Paine once said: "A body of men holding themselves accountable to nobody ought not to be trusted by anybody." Thank you tfi A body of men holding themselves accountatble to nobody ought not' to be trusted y anybody. homas Paine Shared by Ben Lund - 36 Year Spokane Valley Resident Marci Patterson From: Erik Lamb Sent: Friday, April 18, 2025 9:46 AM To: Marci Patterson Cc: Patricia Rhoades; John Hohman Subject: FW: APA/Spokane Valley Marci, Will you please provide this comment we received to Council for the APA item on Tuesday night? Thanks, Erik Erik Lamb // Deputy City Manager 10210 E. Sprague Ave // Spokane Valley, WA 99206 509-720-5100 // elamb@SpokaneVa(levWA.aov CITY OP71 � � �r��n 11L�11 4 ;� Va I ley° This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. From: Adam Jackson <ajackson@spokanevalleywa.gov> Sent: Friday, April 18, 2025 9:27 AM To: John Hohman <jhohman@spokanevalleywa.gov>; Erik Lamb <elamb@spokanevalleywa.gov>; Robert Blegen <rblegen@spokanevalleywa.gov> Cc: Cory Olson <colson@spokanevalleywa.gov> Subject: FW: APA/Spokane Valley FYI. APA support via email from Vera's Todd Henry is included below. Thought I'd share for context. Adam Jackson, P.E. // Engineering Manager 509-720-5024 // AJacksonC3)S okaneValleyWA.gov PUBLIC WORKS IS HIRING: https://www.spokanevalleywa.gov/41 1/Job-Openings This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW. From: Todd Henry <THenrv@verawaterandpower.com> Sent: Friday, April 18, 2025 9:20 AM To: Adam Jackson <aiackson@spokanevallevwa.Pov> Subject: APA/Spokane Valley [EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or clicking links. Good morning, Adam I wanted to drop a quick note of thanks for your and Spokane Valley's work and efforts with (hopefully) getting the APA to the ballot. I know the Spokane Aquifer Joint Board does appreciate Spokane Valleys efforts to continue the APA funding. The SVRP Aquifer resource is of huge importance to all of us in this region and we all need to contribute to making sure the aquifer is monitored, healthy and sustainable forever. Keep up the good fight! Todd Henry Director of Operations Email: thenry@verawaterandpower.com Phone: 888-774-8272 1 Direct: 509-227-6834 P.O. Box 630, Spokane Valley, WA 99037 601 N. Evergreen Road, Spokane Valley, WA 99216 www.verawaterandpower.com