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2025, 09-09 Formal A Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL A FORMAT Tuesday, September 9, 2025 6:00 p.m. Remotely via ZOOM Meeting and In Person at Spokane Valley City Hall, Council Chambers 10210 E. Sprague Ave. Spokane Valley, WA 99206 Council Requests Please Silence Your Cell Phones During Council Meeting NOTE: Members of the public may attend Spokane Valley Council meetings in-person at the address provided above, or via Zoom at the link below. Members of the public will be allowed to comment in-person or via Zoom as described below. Citizens must register by 4 p.m. the day of the meeting to provide comment by Zoom. Please use the links below to register to provide verbal or written comment. Sign up to Provide Verbal Public Comment at the Meeting via Calling-In Submit Written Public Comment Prior to the Meeting Join the Zoom WEB Meeting ------------------------------------------------------------------------------------------------------------------------------- CALL TO ORDER INVOCATION: Pastor Ian Robertson PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA SPECIAL GUESTS/PRESENTATIONS: Sergeant Patrick Bloomer & Acting Supervisory Deputy U.S. Marshal Carson Taylor PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government. This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep remarks civil. Remarks will be limited to three minutes per person. If a person engages in disruptive behavior or makes individual personal attacks regarding matters unrelated to City business before the three-minute mark. To comment via zoom: use the link above for oral or written comments as per those directions. To comment at the meeting in person: speakers may sign in to speak but it is not required. A sign-in sheet will be provided at the meeting. 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, September 9, 2025, Request for Council Action Form: $6,789,420.03. b. Approval of Payroll for Pay Period ending August 31, 2025: $760,088.96. Council Agenda September 9, 2025 Page 1 of 2 ACTION ITEMS: 2. Motion Consideration: Sandy Williams Connecting Communities Program Grant Adam Jackson \[public comment opportunity\] 3. Motion Consideration: CHIP Grant, Habitat for Humanity & SNAP Gloria Mantz \[public comment opportunity\] 4. Motion Consideration: Interlocal Agreement with DNR John Bottelli \[public comment opportunity\] NON-ACTION ITEMS: 5. Admin Report: 2026 State Legislative Agenda Virginia Clough, Briahna Murray 6. Admin Report: 2026 TPA Budget & Work Plan -Lesli Brassfield 7. Admin Report: Business License Threshold Ordinance Update Mike Basinger 8. Admin Report: Perdue Pharma & Secondary ManufacturersOpioid Settlement Tony Beattie INFORMATION ONLY(will not be reported or discussed): 9. Hazard Mitigation Plan Update Virginia Clough GENERAL PUBLIC COMMENT OPPORTUNITY:General public comment rules apply. COUNCILMEMBER REPORTS ADVANCE AGENDA 10. Advance Agenda CITY MANAGER COMMENTS EXECUTIVE SESSION ADJOURNMENT Scan to access the meeting materials Council AgendaSeptember 9,2025 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing AGENDA ITEM TITLE: Approval of the Following Vouchers: CHECK DATES CHECK NUMBERS AMOUNT Posted 8/13/2025Wire payment - 2023 LE Settle & Adjust$ 173,658.00 Posted 8/13/2025Wire payment - 7-2025 LE Contract$ 2,256,609.00 8/20/202569080-69117$ 2,760,691.80 8/21/202511558-11594 (Park refunds)$ 4,577.00 8/21/202569118-69138$ 215,320.71 8/26/202569139-69162$ 197,276.01 8/28/202511595-11608 (Park refunds)$ 1,376.00 8/28/202569163-69200$ 752,071.67 9/2/202569201-69225$ 426,039.84 9/2/202511609-11620 (Park refunds)$ 1,800.00 TOTAL:$ 6,789,420.03 Explanation of Funds Fund Description FundDescription 001 General Fund 309 Parks Capital Projects Fund 101 Street Fund 310 Buildings Capital Project Fund 103 Trails & Paths Fund 311 Pavement Preservation Fund 104 Tourism Facilities Tax Fund 312 Capital Reserve Fund 105 Hotel/Motel Fund 314 Railroad Grade Separation Fund 106 Solid Waste Fund 315 Transportation Impact Fee Fund 107 PEG Fund 316 Economic Dev Capital Proj Fund 108 Affordable-Supportive Housing 402 Stormwater Management Fund 109 Tourism Promotion Area Fund 403 Aquifer Protection Area Fund 110 Homeless Housing Program 501 Equip Rental/Replacement Fund Fund 120 CenterPlace Op Reserve Fund 502 Risk Management Fund 121 Stabilization Res Fund 631 Check Clearing Fund 122 Winter Weather Reserve Fund 632 Passthrough Fees & Taxes Fund 204 LTGO Bonds Fund 901 Government Asset Fund 301 REET 1 Capital Projects Fund 999 Pooled Cash Fund 302 REET 2 Capital Projects Fund 303 Street Capital Projects Fund Cost Org Code Description Center 11000 Legislative Explanation of Cost Centers and Org Codes Branch CC511600 Council Legislative Activities CC511700 Council Lobbying Activities CC515450 Council Ext Legal Claims & Lit 12000Communications CH518300 CHall Bldg Maintenance PI557200 PIO Community SvcsCH518399 CHall Bldg Maintenance NR PI573999 PIO-Cult/Comm Events-OthCCE CH573900 Chall-Cult/Comm Events- OthCCE 13000City Manager 30200 CenterPlace Maint. CM513100CityMan Executive Office CX575500CX MP/Comm Center MX CM513199CtyMgrExecutive Office NR CX594750CPMnt Capital-Rec Facilities CM594139CtyMgr Capital-ExecutiveNR 30300 Precinct Maint. 14000Financial PM521500 PrecMx Facilities Services FN514200Finance Financial ServicesPM521599PrecMx FacilitiesNR 14500Finance 30301 Precinct Programs Maint/LE FP558700 FinPgm-Economic Development PS521500 PubSaf Police Facilities FP558709FinPgm-Economic Development 30500Balfour Maint. NR BM518300 BalfFac Maintenance FP565100 FinPgm-Welfare BM573900BalFac-Cult/Comm Events- FP565109 FinPgm-Welfare NR OthCCE FP565300 FinPgm-Services for DisabledBM594180 BalfFac Capital-Gen Gov FP565400 FinPgm-Homless Services BM594590 BalFac Capital-Prop Dev FP565409FinPgm-Homless Services NR 30600Police Campus Maint. FP565500 FinPgm-Domestic Violence PC521500Police Campus Maintenance FP567000FinPgm-Children Services 30900Other City Facilities FP567009 FinPgm-Children Services NR OF518200 Oth Fac Prop Mgmt FP569000 FinPgms-Aging & Disability SvcOF518300 OthFac Maintenance FP569009 FinPgms-Aging & Dis Svc NR OF594180 OthFac Capital-Gen Gov 15000City Attorney 40000 Public Works Admin. CA515310 CityAtty Internal AdvicePW518900CPW Oth Central Services CA515350 CityAtty Internal LitigationPW594440PubWks Capital-Street Ops CA515410 CityAtty External Advice 41000 Engineering CA515450 CityAtty External Litigation EG543100Eng Street OH Management CA594110 CityAtty Capital-Legal Svcs EG558500Eng BldgPermits & Plan Reviews 16000Public Safety43000 Building PS512520 PubSaf Contracted Court BD521300 Bldg Crime Prevention PS515350 PubSaf Int Legal Litigation BD524600 Bldg Code Enforcement PS515910 PubSaf Indigent Defense BD558500 Bldg Permits & Plan Review PS521200 PubSaf Police Operations 44000 Planning PS521299 PubSaf Police OperationsNRPL558600Planning CP/ED Planning PS523600 PubSaf Prisoner Housing 45000 Housing & Homeless Svc. PS525600 PubSaf Disaster Prep Svcs ExpHS565400 Housing SS-Homeless Svcs PS554300 PubSaf Animal ControlHS565499 Housing SS-Homeless SvcsNR PS586000 PubSaf Court Remittances Exp HH565400 HHAA-Soc Srv-Homeless Services PS594210 PubSaf Capital-Law 46000 Economic Development Enforcement PS594219 PubSafCapital-Law EnforceNRED558700 EcoDev CP/ED Economic Dev 17000Information ED558799 EcoDev CP/ED Economic DevNR Tech ED594570 EconDev Capital-Comm Svcs IT518800 IT IT Services 76000 Parks & Rec Admin. 18000Deputy City Mgr PR575599P&Radm Cult/Rec Fac DM513100 DCM Executive Office MP/CCtrNR 19000Human PR576800P&Radm Park Fac-Gen Parks Resources PR576899P&Radm Park Fac-Gen ParksNR HR515410 HumRes External Legal Advice 76100 Parks & Rec Recreation HR518100 HumRes Personnel Services RC571000 Rec Educ/Rec Activities 20000Administrative RC589300 Rec Custodial Remittances AD518900 City Administrative Svc-Gen 76200 Parks & Rec Aquatics AD594189 Administrative Svcs-Capital AQ576200 Aqua Park Fac-Pools 30000Facilities Admin. AQ576299 Aqua Park Fac-PoolsNR FA515419 Fac External Legal AdviceNR Cost Org Code Description Cost Org Code Description Center Center AQ589300 Aqua Custodial Remittances FA518200 Fac Prop Management 76300 Parks Maintenance FA518300 Fac BldgMaintenance PX576800 ParksMnt Park Fac-Gen Parks FA518399 Fac Bldg MaintenanceNR PX576900 ParksMnt Park Fac-Other FA594180 FacAdm Capital-Gen Svcs PX594760 ParksMnt Capital-Park Fac 30100City Hall Maint. PX594769 PksMnt Cap-Prk Facilities NR 76400Senior Center GG5587OA GenGov ED Outside Agency Grant SC575500 SenCtr Cult/Rec Fac MP/CCtr GG559300 Gen Gov Property Development 76500CenterPlace Activities GG565199GenGov SS Outside Agency CP571200CenterPlace Activities-Ed/Rec Grant 90000General Government GG5651OAGenGov SS Outside Agency GG513100GenGov City Manager Activities Grant GG514200 GenGov Financial Services GG565499 Gen Gov SS-Homeless GG514299 GenGov Financial ServicesNR ServicesNR GG566000GenGov Chem Dependancy Svcs GG514400 GenGov Election Services GG567099 Gen Gov SS-Children ServicesNR GG514900 GenGov Voter Registration GG589300 GenGov Custodial Remittances GG517900 GenGov Other Emp Benefits GG591180 Gen Gov Debt Repmt-Gen Gov GG518100GenGov Personnel Services GG592180 Gen Gov DebtSvcCost-GG GG518300 GenGov Facilities Maintenance GG594180 GenGov Capital-GenGov GG518639GenGov General GrantsNR GG594189GenGov Capital-GenGovNR GG518800 GenGov IT Services GG594440 GenGOv Capital-Street Ops GG518850 GenGov Gen IT Services GG594519Capital-Affordable Housing NR GG518900 GenGov Oth Central Services GG597000 Gen Gov Transfer Out GG519000 GenGov Risk Management GG597099 Gen Gov Transfer OutNR GG553700 GenGov Pollution Control GG558700GenGov Cp/ED Economc Dev GG558799 GenGov CP/ED Economic Dev NR 531001Office Supplies/Equipment 531004Operating Supplies Explanation of Object Codes 531006Safety Supplies 508001VEH LIC FRAUD 531008Repair & Maintenance Supplies 508002TRAUMA CARE 531009Janitorial Supplies 508003CNTY CRIME VICTIMS 531010Vehicle Supplies 508004AUTO THFT PREV 531012Holiday Decorations 508005TRUM BRAIN INJ 532001Vehicle Fuel 508006LAB-BLD/BREATH 535001Small Tools & Minor Equipment 508007WSP HIWAY ACCT 535004JAG Grant Supplies 508008ACCESSCOMMACCT 535008Security Hardware 508009MULTITRANSACCT 535009Network Hardware 508010HWY SAFETY ACT 535011Desktop Hardware 508011DEATH INV ACCT 535012Desktop Software 508012ST GEN FUND 40 535013Emp Health & Wellness Supplies 508013ST GEN FUND 50 535014Non Capital Server Hardware 508014ST GEN FUND 54 535018Non Capital Security Software 508015DNA ACCOUNT 535019Non Capital Network Software 508016JIS ACCOUNT 535020Non Capital Server Software 508017SCH ZONE SAFETY 536006Capital Construction Materials 508020DV PREV STATE 539007TCD-Accident Damage Materials 508021DIST DRIV PREV 540001Merchant Charges (Bank Fees) 508022MC SAFE ACCT 540002 Penalties & Interest 508023WSBCC SURCHARGE 541000 Tourism Promotion 508024Sales Tax 541001 Accounting And Auditing 508025SVFD Fire Fees 541002 Engineering & Architectural 508027VUL RDWY USER 541003 GIS Services 508028DOL TECH SUPP 541004 Contract Attorney Services 508029LAW LIBRARY 541005 Professional Services-General 508030JUDICIAL STABILIZATION TRUST 541006 Land Survey Services 531000Miscellaneous Supplies 541007 Geo Technical Services 541008Materials Testing Services542008Internet Service 541009 Contracted ED Services 542010 Network Infrastructure Access 541010Consulting Services542011Network Inf Access-SCRAPS 541011 Contracted Street Maintenance 543001 Employee Travel Expenses 541012Contracted Snow/Ice Removal543010Emp Travel Reimb -Fed Lobby 541013 Broadcasting Services 543011 Pos 1 -Travel Expenses 541014Contract Signal Maintenance543012Pos 2 -Travel Expenses 541015 WSDOT Snow/Ice Removal 543013 Pos 3 -Travel Expenses 541017Advertising543014Pos 4 -Travel Expenses 541018 Legal Notices 543015 Pos 5 -Travel Expenses 541019Transient Relocation/Transport543016Pos 6 -Travel Expenses 541020 Decant Facility Usage 543017 Pos 7 -Travel Expenses 541021Janitorial Services544003Taxes and Assessments 541023 Valley Youth Voice 545003 Equipment Rental 541024811 Service545005Computer Leases 541025 Encampment Cleanup 545007 Interfund Vehicle Lease 541026Vehicle Towing/Relocation545050Operating Facilities Rent 541027 Homeless Outreach Services546001 Auto & Property Insurance 541028 Federal Lobbyist Services 546002 Payments to Claimants 541029 State Lobbyist Services546051 Public Defender 541030 COVID JAG LE Services 546052 Law Enforcement (Sheriff) 541031 Contracted Park Maint 546053 Law Enforcement Equipment 541032 Contracted IT Support546054 Spokane County Contracts 541033 Liquor Excise Tax546055 Spokane County Contracts - EMS 541034 Liquor Profits 546056 Law Enforcement Equipment 541040 Watershed Studies 546057 Election Costs 541041 Uncollectible Accounts Expense 546058 Spokane County Air Poll Auth 541047 Contracted SW Maintenance 546059 Street Maintenance-County 541054 Hearing Examiner Services 546060 District Court Contract 541060 Outside Agency Grants 546061 Prosecutor 541061Visit Spokane546062LEC Labor Contract Settlement 541062 Sports Commission 546063 Jail:Contract Confinement 541063Spokane County Fair & Expo546064Law Enforcement Vehicles 541064 Valleyfest546065 WSDOT Maintenance Contract 541065 Spokane Valley Heritage Museum 546066 Pretrial Services 541066 HUB 546067 Emergency Management 541067 Evergreen Region Volleyball 546068 Voter Registration 541068 Spokane Octoberfest546069 Animal Control 541069 Crave NW546070 Unemployment Claims 541070 Valleyfest Cycle Celebration 546071 Ecology Permit 541071 Farmers Market - JAKT546072 Utility Permits 541072 Northwest Winterfest 546923 2023 Settle & Adjust 541073 JAKT- Brews Beats and Eats 546924 2024 Settle & Adjust 541077 Spokane Valley Summer Theatre 546925 2025 Settle & Adjust 542001 Postage 547001 Gas/Electric Service 542002 Telephone Service 547002 Water Service 542003 Cell Phone Service 547003 Sewer Service 542004 Web Site Service 547004 Waste Disposal 547005Telvision Service561001ROW Acquisition 547006 Utility Relocation 561002 ROW Land Improvements 548001Repair & Maintenance Services561003Tennant Relocation -CIP 548002 Copier Service561005 Utilities Insallation/Removal 548003Vehicle Service -Rep & Maint562000Bldgs & StrctrConstruction 548007 Building/Grounds Rep & Maint 562001 Building Purchases 548031Desktop SW Subscript/Maint562002Building Improvements 548032 Hosted Software as a Service 562003 Precinct Imp w/ JAG Funds 548033Server HW Subscript/Maint562005Park Buildings 548034 Server SW Subscript/Maint563000 Construction 548035Network HW Subscript/Maint563003Capital Traffic Control Equip 548036 Network SW Subscript/Maint 563005 Capital Stormwater Impr 548037Security HW Subscript/Maint563006Park Structures 548038 Security SW Subscript/Maint563007 Utility Relocations - CIP 549000City Wide Records Management563008Construction -BNSF Expenses 549001 Subscription Services 563009 Construction - UPRR Expenses 549002Memberships563041Street Cap Imp 2011+ Budget 549003 Printing Services 563099 Contingency - Budget Only 549004 Registrations & Training 564000 Capital IT Equipment 549005 Filing & Recording Fees 564001 Capital Office Furniture/Equip 549006 Miscellaneous Services 564004 Capital PEG Equipment 549007 TCD-Accident Damage Services 564005 Capital Machinery & Equipment 549008 Code Enforcement Abatement Svc 564006 Capital Vehicles 549010 Education Reimbursement 564011 Capital Computer Hardware 549011 Pos 1 -Registrations564012 Capital Computer Software 549012 Pos 2 -Registrations564013 IT HW Lease Asset 549013 Pos 3 -Registrations565000 Park Construction 549014 Pos 4 -Registrations571001 Street Bonds - Principal 549015 Pos 5 -Registrations571002 Mirabeau Bonds - Principal 549016 Pos 6 -Registrations571003 LTGO '16 -Principal 549017Pos 7 -Registrations575001Lease Service (Principal) 549018 Vehicle License & Registration582001 Debt Service - Other 549019Homelessness Response Services583001Street Bonds -Interest 549023 Discounts & Scholarships583002 Mirabeau Bonds - Interest 549025 Professional Licenses 583003 LTGO '16 -Interest 549026 Refund-prior period revenues 584001 Street Bonds - Issue Costs 549031 COVID: Rental/Mortgage Asst 584002 Mirabeau Bonds - Issue Costs 549032 COVID: Utility Asst 584003 LTGO '16 -Issue Costs 549033 COVID: Food Insecurity 585001 Lease Service (Interest) 549034 COVID: Small Business Grants 590000 Estimated Ending Fund Balance 549035 COVID: Non-profit Org Grants 599099 CIP Contingency Budget 549036 COVID: School Districts 549050 Emp Health/Welln Events - Serv 560000 Capital Outlay - Budget Only 561000 Land Acquisition Prepaid Expense Accounts GF001000 143700 Prepaid expenses fund 001 SF101000 143700 Prepaid expenses fund 101 SW402000 143700 Prepaid expenses fund 402 RECOMMENDED ACTION OR MOTION: Move to approve attached list of AP Check Run Reports \[Approved as part of the Consent Agenda, or may be removed and discussed separately.\] STAFF CONTACT: Chelsie Walls, Finance Director ATTACHMENTS: AP Check Run Reports 1 of 1 64 of $173,658.00$173,658.00 1 $2,256,609.00 $2,256,609.00$2,430,267.00 Detail Amount Page Object Description County Ctrct Svcs Pyble 2023Law Enforcement (Sheriff)Total: Org Description General FundPubSaf Police Operations GL Account GF001000 - 229523 - PS521200 - 546052 - 12/25/202407/31/2025 Due Date DateDateDate Description Final 2023 - Law Enforcement - Settle & AdjustLE CONTRACT JULY 2025 2980300729913923 Wire Tracking # Invoice 9290202704-1CINV10001752 AP Wire Report Vendor SPOKANE CO TREASURERSPOKANE CO TREASURER Finance Director or designeeMayorCouncil Member Aug 2025 - Wire Payments 2 Qbhf Page 2 of 64 69080-69117 1903103136361931T23-871-7:2/91 1903103136!18;68;54Tbsbi!EfGpse!)TEfGpse*bqxbssou J-!Uif!voefstjhofe-!ep!dfsujgz!voefs!qfobmuz!pg!qfskvsz-!uibu!uif!nbufsjbmt!ibwf!cffo!gvsojtife-!uif!tfswjdft!sfoefsfe-!ps!uif!mbcps!qfsgpsnfe!bt!eftdsjcfe!ifsfjo!boe!uibu!uif!dmbjn!jt!kvtu-!evf!boe! bo!voqbje!pcmjhbujpo!bhbjotu!uif!Djuz!pg!Tqplbof!Wbmmfz-!boe!uibu!J!bn!bvuipsj{fe!up!bvuifoujdbuf!boe!dfsujgz!tbje!Dmbjn/`````````````````````````````````````````````!!````````````````Gjobodf!Ejsfdup s!ps!eftjhoff!!!!EbufDpvodjm!nfncfs!sfwjfxfe;`````````````````````````````````````````````!!````````````````Nbzps!!!!!!!Ebuf`````````````````````````````````````````````!!````````````````Dpvodjm!Nfnc fs!!!!!!Ebuf! 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BACKGROUND: The Sandy Williams Connecting Communities Program (SWCCP) works to improve active transportation connectivity for people walking, biking, and rolling along and across current and legacy state highways. Further, the program serves communities most affected by barriers to opportunity and environmental health disparities. The SWCCP has issued its 2025 call for projects. Funds are offered at 100% award with zero local match. Applicants can request funds for planning, design, construction, or quick-build pilot projects. Applications are due September 19, 2025. Awards are anticipated in early 2026 and projects are expected to initiate work soon after award (no actual dates are programmed). recommend submitting a planning-only grant for development of planning documents for the Appleway Trail between Havana and Dishman Mica (approx. three miles). The proposal will include a robust public outreach effort with an evaluation of route alternatives, placemaking opportunities, and engagement with various community programs and partners. The planning exercise will conduct an alternatives analysis, resulting in a recommended Appleway Trail project route/scope that can be pursued across other funding programs like Spokane Regional Transportation Council, Transportation Improvement Board, or the Pedestrian/Bicycle Program. OPTIONS: Proceed with the proposed motion as written or take other appropriate action. RECOMMENDED ACTION OR MOTION: Move to authorize the City Manager or designee to apply to the Sandy Williams Connecting Communities Program for the Appleway Trail planning only project. BUDGET/FINANCIAL IMPACTS: Local match is not required. The proposed planning project is estimated not to exceed $200,000. STAFF CONTACT: Adam Jackson, Engineering Manager ATTACHMENTS: Figure 1 Proposed Project: Appleway Trail ) 6 mi ) - r Far Existing Appleway Trail (Farr Rd eastward Appleway Trail Dishman Mica to FutureSRTC Funded 2028+/ ( Appleway Trail Planning Only Grant Proposed Application: (Havana to Dishman Mica) 90 - WSDOT Pedestrian Bridge Over I stward) Future Trail we Rd Ave. rd ity of Spokane 3 C Possible Application Havana ( : Proposed Project: Appleway Trail 1 Figure CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion Consideration: Washington State Department of Commerce (Commerce) Connecting Housing to Infrastructure Program (CHIP) Potential Grant Opportunities GOVERNING LEGISLATION: Washington State 2025-2027 Capital Budget SHB 5200, Section 1021; RCW 82.14.540 Affordable Housing Sales and Use Tax PREVIOUS COUNCIL ACTION TAKEN: August 26, 2025, Administrative Report providing Homeownership at Carnahan project, Senior Housing project. BACKGROUND: On August 26, 2025, an administrative report was given to Council discussing the Connection Housing to Infrastructure Program (CHIP). 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. The applicant must be a city, county or public utility district, applying in coordination with the developer of an affordable housing project, and must meet specific requirements under state law. Eligible costs include the installation of onsite or offsite utility improvements such as drinking water, wastewater or stormwater necessary for new affordable housing projects. In 2024, Council approved partnering with Spokane Housing Authority (SHA) to apply for CHIP funding during the 2023-2025 biennium grant cycle. The project received a $1.1M award and th construction is currently underway for the Appleway Development project located at 9909 E 4 Ave in Spokane Valley. The 240-unit development will serve workforce/family households that earn 60% of the area median income (AMI), and include a daycare center on site. The first units are anticipated to be available for occupancy in March 2026, with overall completion expected in October 2026. For the 2025-2027 biennium, grant awards will be a maximum of $1 million per project. A total of $85 million is available statewide 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 September 26, 2025. Awards are anticipated to be announced in January 2026. Project Details: City staff are requesting to submit grant applications during the 2025-2027 round of CHIP funding for the following two developments: Page 1 of 3 1) Habitat for Humanity Spokane; Homeownership at Carnahan On October 29, 2024, the City released an RFP entitled Affordable & Market Rate Housing on projects. Habitat for Humanity (Habitat) was subsequently awarded the properties in spring of 2025 and is currently in the design and permitting phase of the project. Located at Carnahan and 2nd avenue, the development will be comprised of 23 lots, each with a 1,277 sq. ft. two-story triplex unit featuring three bedrooms and 1.5 baths. The zero-lot line design provides efficient land use. The project will also provide shared amenities, including a playground, garden, or community center. Additionally, a lot on 1st avenue will be developed with a duplex to address the housing needs of generational families, including seniors and individuals experiencing disabilities. Thoughtful design ensures long-term livability and stability, providing a safe and accessible home for diverse family needs. The project will create family- sized units suitable for households earning no more than 80% of AMI Habitat plans to complete the project in two phases, 12 units in Phase I and 11 units in Phase II. Construction is anticipated to begin in September 2026 with the first certificate of occupancy occurring in July of 2027. Habitat intends to use potential CHIP grant funding to pay for utility infrastructure installation and estimates that the infrastructure costs for the project will be $1M. The total project cost for the development is estimated to be approximately $7.5 million. 2) Spokane Neighborhood Action Partners (SNAP) Broadway Senior Housing Project The City released an RFP on January 10, 2023, seeking proposals for affordable housing and/or homeless services. On May 16, 2023, Council approved an allocation of $471,729 to SNAP to help support the pre-development costs of the construction of the Broadway Senior Housing (BSH) project. SNAP has been working toward the development of the BSH complex located at 8001 E. Broadway Ave. This project will serve 62 Seniors at income levels of 60% to 40% of the area median income (AMI) and below. The development will consist of a four-story, corridor-loaded building with two elevators, providing 57 one-bedroom units and three two-bedroom units. SNAP will be the owner, operator, and developer for the project. The General Contractor for the project is a Spokane Valley-based company, T.W. The project has reached the 75% design completion benchmark and will be moving forward with permitting in September. The anticipated construction start date is December 2025. SNAP intends to use potential CHIP grant funding to pay for utility infrastructure installation at the Broadway site. SNAP estimates that the infrastructure costs, primarily an off-site water main connection, for the project will be approximately $800,000. The total project cost for the development is estimated to be approximately $23 million. : If approved by Council, the City will be the primary applicant and the sponsoring jurisdiction for the CHIP grants. Commerce has created a collaborative application portal so the project developer can enter the appropriate information directly into the application portal. City staff will review all application materials before submitting the applications. The City does not incur any financial obligations by applying for the CHIP grant. Page 2 of 3 Additionally, all awarded grants are paid on a reimbursement basis, as a pass-through grant. Commerce would contract with the City and the City would contract with the project developer. The City would receive reimbursement requests from the project developer for eligible grant costs and perform a preliminary review of the documentation. The City may then request reimbursement from Commerce for those eligible costs, which the City would then pay to the project developer. The City will not have to provide long-term monitoring compliance such as ensuring that the units remain affordable. Each project developer will be responsible for ensuring relevant legal requirements around procurement for the project are met, as well as for annual certification that the project meets affordability requirements. OPTIONS: Approve authorizing the City Manager to submit the recommended applications for CHIP funding to the Department of Commerce, or other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: Move to approve the City Manager to partner with Habitat for Humanity and Spokane Neighborhood Action Partners to submit the recommended applications for CHIP funding from the Department of Commerce. BUDGET/FINANCIAL IMPACTS: The City does not incur any financial obligations by applying for these grants. However, a future budget amendment would be added with a corresponding amount of expenditures and grant revenue for the reimbursements for eligible expenses to each contracted project developer and revenue from Commerce. City staff will be responsible for the administration of the grants. Staff assigned to the CHIP program are salary employees. STAFF CONTACT: Gloria Mantz, City Services Administrator ATTACHMENTS: None Page 3 of 3 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion: ILA between City and Washington Department of Natural Resources for use of Parking Facilities at Mirabeau Point Park GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: 4/15/2025 Administrative Report regarding Washington DNR Pinecroft Natural Area Preserve Management Plan Update BACKGROUND:The Pinecroft Natural Preserve(NAP)is a 100-acre natural area owned and managed by Washington Department of Natural Resources (DNR) located adjacent to the City of Spokane Valley’s Mirabeau Point Park. As an NAP, the primary management objective for DNR at Pinecroft is to maintain the ecosystems for which the site was identified and acquired in the first place (a combination of Ponderosa pine / grass ecosystems and Ponderosa pine / shrub ecosystems). Selection/acquisition/and management intent of NAPs is guided by the Natural Area Preserves Act (RCW 79.70). RCW 79.70 includes conservation, research and education as objectives for NAPs. Current and recent threats to the NAP at Pinecroft include fire, noxious weeds, and impacts associated with unauthorized public access and illegal camping. Management to-date has focused on restricting public access, conducting weed control, limited planting of native grasses and forbs, and limited thinning of Ponderosa pines. Current approaches to managing public access have not been effective; unsanctioned use has resulted in increasing levels of resource damage, as well as threats to adjoining properties, residents, and neighbors of the NAP. In 2019, DNR staff and then Parks Director Mike Stone visited with the Council to discuss these challenges and DNR’s desire to update the Management Plan for Pinecroft NAP to consider alternative approaches to managing the site within the provisions of the Natural Area Preserves Act. One concept discussed at that August 13, 2019 meeting was allowing limited, appropriate public access to the NAP from the City’s adjoining Mirabeau Point Park as opposed to fencing off the entire property. Potential positives to providing public access include: By constructing an educational trail and providing signage, DNR could direct people to where resource damage would be minimized; Planned and directed access may limit inappropriate and/or incompatible behaviors; and Through signage, the community could be informed about the ecological/conservation values of the site, which could lead to increased public ‘ownership’ of the site; people caring about, and for, the site. Since 2020, it has been a published goal in the City’s annual Budget Book to establish a partnership with DNR for the 100-acre natural area adjacent to Mirabeau Point Park. In 2022 DNR added a new Natural Areas Manager to its Northeast Region staff to provide oversight of the Pinecroft NAP and other locations. The addition of a new Natural Areas Manager to the region has allowed a more active presence on the property than was possible in the past. Since then, through collaboration with the City, roughly 12 illegal campsites have been cleaned up and more than 50,000 pounds of garbage has been removed from the site by DNR. On April 15, 2025, Council heard an update from DNR about their planning process for the Pinecroft NAP and updates to the Management Plan, including community engagement and opportunities for public input. Staff subsequently negotiated the attached Interlocal Agreement between the City and DNR to facilitate access to an educational trail system through the NAP from Mirabeau Point Park for our citizens and community members to enjoy. The Interlocal Agreement allows nonexclusive parking for Pinecroft NAP trail users at City parking facilities at Mirabeau Point Park during the Mirabeau Point Park hours of operation. The term of the Interlocal Agreement shall initially run through December 31, 2026. OPTIONS: Move to authorize the City Manager to execute the Interlocal Agreement between the City of Spokane Valley and the Washington State Department of Natural Resources for Use of Parking Facilities at Mirabeau Point Park. RECOMMENDED ACTION OR MOTION: Move to authorize the City Manager to execute the Interlocal Agreement between the City of Spokane Valley and the Washington State Department of Natural Resources for Use of Parking Facilities at Mirabeau Point Park. BUDGET/FINANCIAL IMPACTS: Ongoing management of the Pinecroft NAP will continue to fall under the responsibility of the DNR. STAFF CONTACT: John Bottelli. Parks and Recreation Director ____________________________________________________________________________ ATTACHMENTS: Interlocal Agreement INTERLOCAL AGREEMENT BETWEEN THE CITY OF SPOKANE VALLEY AND THE WASHINGTON STATE DEPARTMENT OFNATURAL RESOURCES FOR USE OF PARKING FACILITIES AT MIRABEAU POINT PARK DNR Agreement #93-108533 WHEREAS, the City of Spokane Valley (the “City”) and Washington State Department of Natural Resources (“DNR”), collectively, the “Parties” or individually referred to as “Party”, desire to enter into this interlocal agreement for nonexclusive use of the City parking facilities located at Mirabeau Point Park to allow the opening of pedestrian access to DNR’s Pinecroft Natural Area Preserve (the “Agreement”); and WHEARAS, DNR’s Pinecroft Natural Area Preserve (the “Pinecroft NAP”) is a 100.19-acre natural area preserve owned and managed byDNRfor conservation, research, andenvironmental education purposes pursuant to chapter 79.70 RCW and chapter 332-52 WAC; and WHEREAS,Mirabeau Point Park is a 55.51-acre City parkthatis aregional, community, multi- use education, recreational, and cultural destinationin the heart of the City located along the south bank of the Spokane River and Centennial Trail; and WHEREAS, DNR intends to open the Pinecroft NAP located at tax parcel 45105.9068 for the public to explore the educational trails, as well as provide a glimpse into the City’s natural history and enrich the community’s shared sense of place; and WHEREAS, DNR’s planned educational trail access to the Pinecroft NAP from the City’s Mirabeau Point Park will be located at the northwest corner of the Mirabeau Meadows; and WHEREAS, the City has extensive parking facilities for the traveling public to utilize when visiting the trails, waterfall, ponds, playgrounds, and other amenities at Mirabeau Point Park; and WHEREAS, DNR desires to utilize such parking for users desiring to access the Pinecroft NAP. NOW,THEREFORE,theCityandDNRhereby agreeasfollows: 1–PURPOSEOFAGREEMENT 1.1Thepurposeoftheagreement is to: 1.1.1 Enhancepublic accessto the Pinecroft NAP, located at tax parcel 45105.9068, for environmentaleducationandnatureappreciation,whilemaintainingsiteprotection for conservation values; and 1.1.2Connect the adjacent City-owned walking trails located in Mirabeau Meadows and Mirabeau Springs, which are part of the amenities at Mirabeau Point Park, located at tax parcel 45105.9010, to the Pinecroft NAP interpretive trail. This willresult in a more complete nature conservation education experience. A site plan for the proposed Pinecroft NAP interpretive trail is attached as Exhibit “A” hereto. Page 1 of 7 2– RESPONSIBILITIES OF THE PARTIES 2.1 DNR shall: 2.1.1Be responsible according to the provisions herein for any and all activities, use, management, operations, improvements, work, and access to the Pinecroft NAP, and anyand all enforcementof federal, state and local rules, laws, regulations, and ordinances thereon. 2.1.2Be responsible for adherence to all federal, state and local laws, regulations, and ordinances which relate directlyto its ownership or management of the Pinecroft NAP, including obtaining all permits and approvals necessary for any work or activitythereon. Nothingherein shall be construed as theCity providing advanced approval for any projects, whether contemplatedaspartof this Agreement or not. 2.1.3During the remainder of calendar year 2025- and all of calendar year 2026, work towards creating one or more formal entrances to the Pinecroft NAP and develop a walking trail for the purposes of environmental education and nature enjoyment. 2.1.4Install,maintain, and replace as needed, welcome signs, DNR regulation signs, and trail signs that list hours of access consistent with those listed in chapter 6.05 of the Spokane Valley Municipal Code. 2.1.5Repair breaches inthe PinecroftNAP fence. 2.1.6Monitoruse patterns and impactsto the natural features within Pinecroft NAP and manage for appropriate use levels, location, and potential mitigation measures, including, as needed, closure of the interpretive trail. 2.1.7 Discuss with the City potential future opportunities related to the management and use of the Pinecroft NAP and the City’s Mirabeau Point Park. 2.2 The City shall: 2.2.1Participate with DNR in messaging and joint communications for neighborhood and community outreach about creation of the new educational trail, and related outreach activities; and potentially host community meeting(s) at CenterPlace Regional Event Center located in Spokane Valley, WA at the City’s sole discretion. 2.2.2AllownonexclusiveparkingforPinecroftNAPtrailusersatCityparkingfacilities at Mirabeau Point Park during the Mirabeau Point Park hours of operation. 2.2.3Continue to provide trash disposal from trash bins adjacent to the Pinecroft NAP on City park property through the City’s existing park maintenance contract. 2.2.4Upon observing or being made aware of any facility or fence repair needs, communicate in writing those necessary repairs to be addressed by DNR pursuant to their responsibilities. 2.2.5Discuss with DNR potential future partnership opportunities related to the management and use of the Pinecroft NAP and the City’s Mirabeau Point Park. 3–MISCELLANEOUS TERMS 3.1 Term. ThisAgreement shall become effective upon execution by theparties, and shall remain ineffect untilDecember 31,2026, unless sooner terminated by either party as provided herein. Page 2 of 7 3.2 Termination. Either party mayterminatethis Agreement by providing 30 days written notice to the Project Coordinator of the other party at the address listed in section 3.7.If this Agreement is terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this agreement prior to the effective date of termination. 3.3 Amendments. This Agreement shall only be amended by written mutual consent of both parties.For the City, the City of Spokane Valley’s City Councildelegates the authority to amend this Agreement to the City Manager or designee. For DNR, signature authority for contracts and amendments is determined by what is, at the time, the most updated Commissioner’s Delegation Order. 3.4Liability. 3.4.1DNR shall protect, defend, indemnify, and hold harmless the City and its officers, employees and/or authorized agents from any and all claims, injuries, death, damages, losses or suits, judgments, and/or awards of damages (both to persons and/or property) arising out of, or in any way resulting from, DNR’s wrongful or negligent acts, errors, or omissions in the performance or failure to perform its obligations pursuant to the provisions of the Agreement. 3.4.2City shall protect, defend, indemnify, and hold harmless DNR and its officers, employees and/or authorized agents from any and all claims, injuries, death, damages, losses or suits, judgments, and/or awards of damages (both to persons and/or property) arising out of, or in any way resulting from, City’s wrongful or negligent acts, errors, or omissions inthe performance or failure to perform its obligations pursuant to the provisions of the Agreement. 3.4.3Neither Party shall be required to protect, indemnify, defend, or hold harmless the other Party if the claim, suit, or action for injuries, death, or damages (both to persons and/orproperty) is caused solely by the wrongful or negligent acts, errors, or omissions of the other Party’s performance or failure to perform its obligations pursuant to the provisions of the Agreement; provided that, if such claims, suits, or actions result from the concurrent wrongful or negligent acts, errors, or omissions of DNR,its officers,employeesand/or authorized agents,andthe City, its officers, employees and/or authorized agents, or involves those actions covered by RCW 4.24.115, the indemnity provisions provided herein shall be valid and enforceable only to the extent of the proportionate responsibility of each Party, its officers, employees, and/or authorized agents. 3.4.4DNR recognizes that it is the manager of the Pinecroft NAP property. As such, in additionto the generalindemnification provisionsabove, DNR specifically agrees to protect, defend, indemnify, and hold harmless the City and its officers, employees and/or authorized agents from any and all claims, injuries, death, damages, losses or suits including attorney fees, judgments, and/or awards of damages arising out of or in connection with any activity on, or use of the Pinecroft Page 3 of 7 NAP property, unless caused solely by the wrongful or negligent acts, errors, or omissions of the City. 3.4.5The provisions of section 3.4 shall survive the expiration or termination of this Agreement. 3.5 Costs.Each Party will bearits owncosts associatedwith itsobligations herein. 3.6 Acquisition and disposition of property. It is not anticipated that any real or personal property will be acquired by a Party pursuant to this Agreement. Where real or personal property is acquired by a Party, it shall be deemed the propertyof that Party and may be held and disposed of in accordance that Party’s governing laws and regulations. 3.7 Project Coordinators: 3.7.1The Project Coordinator for City is: John Bottelli, Parks & Recreation Director, City of Spokane Valley, at (509) 370-9572; Mailing Address: 10210 East Sprague Avenue Spokane Valley WA, 99206; main telephone (509) 720-5400. 3.7.2The Project Coordinator for DNR is: Connor Nikkola, NE Region Natural Areas Manager, at (509) 675-5264. Mailing Address: The State of Washington Department of NaturalResources Northeast Region, 225SSilkeRd, Colville, WA 99114; main telephone (509) 684-7474. 3.8 Filing. As required by RCW 39.34.040, prior to this Agreement’s entry into force, this Agreement shall be filed with the county auditor or, alternatively, another electronically retrievable public source. 3.9 Dispute resolution.In the event that a dispute arisesunder thisAgreement,it shall be resolved as follows: 3.9.1The Project Coordinators for each Party shall meet to discuss the issue and potential resolutions; and if not resolved then 3.9.2One or both Partiesmay filesuit in Thurston CountySuperior Court. 3.10 Venue. In the event that either Party deems it necessary to institute legal action or proceedings to enforce anyrightorobligationunder thisAgreement, the Parties agreethat any such action or proceedings shall be brought in Thurston County Superior Court. 3.11 Approval. By signature below, the Partiescertify that the signatories below are authorized to sign on behalf of the agency and bind the same. Specifically, DNR certifies that the agreement has been approved by any necessary state officer or agency with regard to matters within his, her or its jurisdiction pursuant to RCW 39.34.050. Page 4 of 7 3.12 Nondiscrimination During the performance of thiscontract,theParties shall comply with allfederaland state nondiscrimination laws, regulations, and policies. 1. Nondiscrimination Requirement.During the term of this contract, the Parties, including any subcontractor, shall not discriminate on the bases enumerated at RCW 49.60.530(3). In addition, the Parties, including any subcontractor, shall give written notice of this nondiscrimination requirement to any labor organizations with which the Parties, or subcontractor, has a collective bargaining or other agreement. 2. Obligation to Cooperate. The Parties, including any subcontractor, shall cooperate and comply with any Washington state agency investigation regarding any allegation that the Parties, including any subcontractor, has engaged in discrimination prohibited by this contract pursuant to RCW 49.60.530(3). 3. Default.Notwithstanding any provision to the contrary, either Party may suspend the other Party, including any subcontractor, uponnotice of a failure to participate and cooperate with any state agency investigation into alleged discrimination prohibited by this contract, pursuant to RCW 49.60.530(3). Any such suspension will remain in place until the suspending Party receives notification that the suspended Party, including any subcontractor, is cooperating with the investigating state agency. In the event the Parties, or subcontractor, is determined to have engaged in discrimination identified at RCW 49.60.530(3), either Party mayterminate this contractin whole or in part, and the Party, subcontractor, or both, may be referred for debarment as provided in RCW 39.26.200.The offending Party or subcontractor maybe given a reasonabletime in which to cure this noncompliance, including implementing conditions consistent with any court- ordered injunctive relief or settlement agreement. 4. Remedies for Breach. Notwithstanding any provision to the contrary, in the event of contract termination orsuspension for engaging in discrimination, theoffending Party, subcontractor, or both, shall be liable for contract damages as authorized by law including, but not limited to, any cost difference between the original contract and the replacement or cover contract and all administrative costs directly related to the replacement contract, which damages are distinct from any penalties imposed under Chapter 49.60, RCW. Either Party shall have the right to deduct from any monies due to the other Party or subcontractor, or that thereafter become due, an amount for damages the offending Party or subcontractor will owe the other Party for default under this provision. 3.13 Subcontractors No subcontractor(s) will be used to perform any part of the work under this contractunless the other Party has provided written authorization for the same. 4EXHIBITS A. Site Plan Page 5 of 7 CITYOFSPOKANEVALLEY: By: Date: John Hohman, City Manager APPROVEDAS TOFORM: By: Date: Office of the City Attorney THESTATE OF WASHINGTONDEPARTMENTOF NATURALRESOURCES By:____________________________________Date: Pat Ryan, DNR Northeast Region Manager Page 6 of 7 Page 7 of 7 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE:Admin report on the 2026State Legislative Agenda GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: End of session report was provided on May 13, 2025. BACKGROUND: Briahna Murray of Gordon Thomas Honeywell Government Relations will provide a 2026 session preview and present the initial draft of the 2026 State Legislative Agenda. The Council will have an opportunity for discussion about the draft agenda and following this administrative report, a motion for consideration is tentatively planned for September 30. A discussion with the 4th District delegation will be scheduled after the November election and prior to the Legislative session that begins January 12, 2026. Policy issues continue to prioritize public safety/behavioral health, housing affordability, local decision-making authority, fiscal management and reducing costs through reform. The draft 2026 Legislative Agenda is similar to the 2025 document, however due to the short session, it does not include “Key Focus Items” which we will likely add again next year. Other changes from the 2025 legislative agenda include the following: Transportation Funding Request Since this is a short session with no transportation funding anticipated, the Barker/I-90 project is intended as a general statement with the assumption the City will make a specific funding request in 2027. Public Safety and Behavioral Health Updated policy language regarding police and public defense funding. Added policies regarding “No Wrong Door” model for youth detox facilities and preference for treatment over harm reduction programs as requested by Council following the Gabriel’s Challenge presentation in June. Housing Affordability Added language to strengthen joint planning efforts within UGAs and a policy statement aimed at keeping insurance premiums under control. Updated affordable housing language. Removed condo liability reference (following bill passing in 2025). Fiscal Management Updated the cannabis revenue policy. Reducing Costs Through Reform Modified liability language. Other Moved Support For Regional Items of Importance to page 3 with items pending further discussion. Prepared an Active Grants handout to ensure we are tracking previously budgeted funds. OPTIONS: For discussion only. RECOMMENDED ACTION OR MOTION: Discussion with feedback on the draft document. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Virginia Clough, Legislative Policy Coordinator and Briahna Murray, Gordon Thomas Honeywell Government Relations. ATTACHMENTS: PowerPoint presentation, Draft 2026 Agenda, Active Grants Handout 2026 Session Preview 2026 Session Preview Association of Washington Cities Active Grants Project Program Amount/Budget $1,192,000 Arterial SchoolsCrossingsSafe Routes to School 2025-2027 Transportation Budget $285,000 Safe Routes to School Appleway 2025-2027 Transportation Budget Barker Road Roundabout$1,665,000 Pedestrian and Bicycle th at 8Avenue2025-2027 Transportation Budget $180,000 Active Transportation Planning Pedestrian and Bicycle 2025-2027 Transportation Budget $180,000 Active Transportation Planning Safe Routes to School 2025-2027 Transportation Budget Argonne Road and Interstate 90 $2,000,000 FMSIB List Bridge2025-2027 Transportation Budget Balfour Playground and Spray Land Water $2,000,000 Park Conservation Fund 2025-2027 Capital Budget Balfour Playground and Spray Washington Wildlife and $500,000 Park Recreation Program2025-2027 Capital Budget Comprehensive GMA Comprehensive Planning: $105,625 Planning - Periodic Periodic Update Grant #22026-2027 Operating Budget Update Grant Comprehensive $210,000 GMA Climate Grant #2 Planning – Climate 2026-2027 Operating Budget Updated: 9/03/25 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: Sept. 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: 2026 Tourism Promotion Area (TPA) Budget and Work Plan GOVERNING LEGISLATION: Chapter 3.21 SVMC, RCW 35.101 PREVIOUS COUNCIL ACTION TAKEN: On May 2, 2023, City Council approved a motion to authorize the City Manager or designee to execute a contract for $44,045 in TPA revenue with 116 & West to develop a five-year Destination Marketing Strategic Plan. On June 20, 2023, City Council authorized the City Manager or designee to execute a contract with Spokane Sports for $300,000 in TPA revenue to provide sports recruitment and marketing services for 2023. The Spokane Sports contract can be renewed annually through 2027. August 15, 2023, City Council received the 2023 TPA Summary Report outlining activities and related work completed by Community and Economic Development (CED) Department staff and the TPA Commission between Jan. 1, 2023, and August 31, 2023. On Sept. 19, 2023, City Council approved the five-year plan and authorized the City Manager or designee to execute a contract with 116 & West for $813,500 in TPA revenue to provide destination marketing services for 16 months through December 31, 2024. This 116 & West contract can be renewed annually through 2027. On Dec 12, 2023, Council approved a motion to authorize the City Manager or designee to execute a contract amendment with Spokane Sports for $400,000 in TPA revenue to provide sports recruitment and marketing services in 2024. On May 7, 2024, Council approved an amendment to the contract with 116 & West to spend an additional $466,000 in TPA revenue for additional marketing services in 2024. On August 27, 2024, Council received a TPA Summary Report for July 1, 2023 through June 30, 2024 that outlined activities and related work completed by the CED Department and TPA Commission. On Sept. 10, 2024, Council approved a 2025 TPA Budget of $1,275,000 and work plan to utilize the consultants $116 & West and Spokane Sports to perform TPA marketing services. On Nov. 12, 2024, Council approved a motion to authorize the City Manager or designee to execute a 2025 contract amendment with Spokane Sports for $400,000 in TPA revenue to provide sports recruitment and marketing services in 2025; and to execute a 2025 contract amendment with 116 & West to spend $875,000 for destination marketing services. Both agreements with Spokane Sports and 116 & West contract can be renewed annually through amendment through 2027. BACKGROUND: City Council received the TPA Summary Report July 2024 – June 2025 as an informational item in the Sept. 2, 2025, meeting packet. This report summarized revenues, expenditures, and 1 marketing initiatives during the 12-month period. Spokane Valley Municipal Code 3.21 requires that the Hotel Commission, a recommending body for expenditures of TPA revenue, provide an annual written summary report to City Council prior to the adoption of the TPA Budget and Work Plan for the following year. The Annual Budget and Work Plan must be presented to Council by Sept. 30. The TPA Hotel Commission heard a presentation from city staff at its August 21 meeting regarding the proposed 2026 TPA Budget and Work Plan. City staff recommended $1,325,000 in TPA funds be made available in 2026 for destination marketing and event recruitment services. This budget was based on projected tourism travel and historical revenue generation. In addition, city staff recommended that $450,000 in 2025 carryover TPA funds be added to 2026 funds, resulting in a total 2026 TPA budget of $1,775,000. Regarding the 2026 Work Plan, City staff recommended the following: Amend consultant agreements with 116 & West and Spokane Sports to extend their services through 2026. Utilize a portion of TPA revenue in 2026 to establish and implement an “Opportunity Fund” to support events and venues that generate overnight visitors. Utilize a portion of funding to support the purchase of technology services that would provide place-based and financial data to help determine the geographical reach and economic impact of events or venues. The TPA Hotel Commission unanimously recommended that the 2026 TPA Budget and Work Plan as presented by staff be forwarded to City Council for consideration. If City Council approves the 2026 Budget and Work Plan as presented, CED staff will: Coordinate with the TPA Commission at its September 25 meeting regarding anticipated scope and fee proposals for 2026 TPA funds, including the proposed Opportunity Fund. Develop detailed scope and fee proposals for 2026 TPA funds from 116 & West, Spokane Sports, and from CED staff for an Opportunity Fund and technology services, to the TPA Commission for consideration on October 16. Provide scope and fee proposals for 2026 TPA funds to City Council in an administrative presentation in late October or early November. OPTIONS: Consensus for staff to bring forth a motion to approve the 2026 TPA Budget and Work Plan as presented, or take other action. RECOMMENDED ACTION OR MOTION: Consensus for staff to bring forth a motion to approve the 2026 TPA Budget and Work Plan as presented. BUDGET/FINANCIAL IMPACTS: Expenditures of $1,775,000 to support TPA programs will come from Fund 109 – Tourism Promotion Area Fund. The city’s Finance Department is projecting TPA revenues of about $1,300,000 in 2026, and through a future budget amendment could carry over approximately $450,000 in 2025 revenue into the 2026 budget. STAFF CONTACT: Lesli Brassfield, Tourism and Marketing Manager ATTACHMENTS: Proposed 2026 TPA Budget and Work Plan 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date:September 09, 2025 Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Business license code update Threshold. GOVERNING LEGISLATION: RCW 35.90; Chapter 5.05 SVMC. PREVIOUS COUNCIL ACTION: On September 25, 2018, City Council adopted Ordinance No. 18-020 amending the business license code. BACKGROUND: In 2017, the State Legislature adopted the Engrossed House Bill 2005, which is now codified as chapter 35.90 RCW requiring all cities to adopt a business model license ordinance, by January 1, 2019. The model business license ordinance was developed by a large group of stakeholders with input from cities around the State. The 2018 model included a mandatory definition of “engaging in business” and an Out-of-City exemption for persons or businesses whose annual value of products, gross proceeds, or gross income within a city is equal to or less than $2,000. On September 25, 2018, City Council adopted Ordinance No. 18-020 which included the exemption for Out-of-City Businesses whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $2,000. In 2024 the model threshold was reviewed and updated by a work group of Washington cities to revise the minimum threshold for Out-of-City businesses. Effective January 1, 2026, the model threshold increases to $4,000 (from $2,000) for Out-of-City businesses. Every four years thereafter, the threshold will have an automatic periodic increase based on cumulative inflation. These mandatory changes must be adopted by cities with the effective date of January 1, 2026. Business License Service requires 75-day notice for any changes to a city’s business licensing system, effectively the City is requesting to update the threshold model amount increase by September 30, 2025. RECOMMENDED ACTION OR MOTION: Consensus to proceed with first reading. BUDGET/FINANCIAL IMPACTS: The City cannot determine potential revenue collections from the proposed change at this time STAFF CONTACT: Mike Basinger, Community and Economic Development Director ATTACHMENTS: - Draft Ordinance 25-014 - Proposed regulation changes to 5.05.020(D) - Outline of Changes to Business License Model Ordinance Page 1 of 1 Draft CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 25-014 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY WASHINGTON, AMENDING SPOKANE VALLEY MUNICIPAL CODE 5.05.020 PERTAINING TO THE BUSINESS LICENSE OUT-OF-CITY THRESHOLD, AND OTHER MATTERS RELATED THERETO . WHEREAS pursuant to RCW 35A.82.020 and RCW 35.22.280, the City of Spokane Valley (City) is authorized to regulate and license businesses within its boundaries; and WHEREAS, the City has adopted chapter 5.05 Spokane Valley Municipal Code (SVMC) regarding the licensing of business within the City, and WHEREAS, the City contracts with Business Licensing Services (BLS) for administering City business license registrations under chapter 5.05 SVMC; and WHEREAS, in 2017, the Washington State Legislature adopted chapter 35.90 RCW, which required the City to adopt a model threshold option for businesses located outside of the City by January 1, 2019. WHEREAS, on September 25, 2018, the City Council adopted Ordinance No. 18-020, which included the threshold for Out-of-City Businesses. WHEREAS, the model ordinance threshold for Out-of-City Businesses established in 2018 was reviewed by a work group of cities in 2024; and WHEREAS, the work group updated the threshold to $4,000 and established a mechanism for modifying the threshold in accordance with CPI every four years; and WHEREAS, cities are required to update their thresholds accordingly by January 1, 2026; and WHEREAS, on September 16, 2025, Council considered a first ordinance reading to approve the 2026 threshold increase and subsequent automatic increases based on cumulative inflation every four years; and WHEREAS, the City Council hereby determines that amending chapter 5.05 SVMC to adopt the required business model update proposed by staff is in the best interest of the City and its citizens. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Purpose. The purpose of this Ordinance is to amend Spokane Valley Municipal Code (SVMC) 5.05.020 related to the threshold for Out-of-City Businesses in accordance with the requirements of state law and the model ordinance. Section 2. Amend. SVMC 5.05.020 is hereby amended to read as follows:. 5.05.020 Business license registration required. Ordinance 25-014: Model Business Threshold Page 1 of 3 Draft A. Every person engaging in business shall register such person’s business with the City. License registration shall include completion of a registration request, payment of any applicable license registration fees, and receipt of endorsement or approval of the license registration application by the City. If more than one business is located on a single premises, including residential home-based businesses, separate license registrations shall be required for each separate business conducted. Businesses with more than one City location shall register each location separately. B. Valid License Registration. No person may engage in business in the City or with the City without first having obtained and being the holder of a valid annual Washington State business license registration, and a valid annual City license registration. C. The city manager is hereby authorized to enter into an agreement with the State of Washington Master License Service, its successor, or any other entity as allowed by law under which that agency shall accept and process City business license registration applications. D. Threshold for Out-of-City Businesses. For purposes of the license registration by Chapter 5.05 SVMC, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $4,000 and who does not maintain a place of business within the City shall submit a business license registration to the City. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. The threshold amount will be adjusted every forty-eight months with the first adjustment occurring on January 1, 2030 by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. Section 3. Other sections unchanged. All other provisions of chapter 5.05 not specifically referenced hereto remain unchanged and in full force and effect. Section 4. Severability. If any section, sentence, clause, or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance. Section 5. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. rd Passed by City Council this 23 day of September, 2025 ____________________________________ ATTEST: Pam Haley, Mayor __________________________________ Marci Patterson, City Clerk Approved as to form: Ordinance 25-014: Model Business Threshold Page 2 of 3 Draft _________________________________ Office of the City Attorney Date of Publication: _________________ Effective Date: ____________________ Ordinance 25-014: Model Business Threshold Page 3 of 3 Djuz!Cvtjoftt!Mjdfotf!Npefm!Psejobodf! 2/!Pvumjof!pg!Dibohft!up!Cvtjoftt!Mjdfotf!Npefm!Psejobodf! Fggfdujwf!ebuf!up!Kbovbsz!2-!3137/! Pof.ujnf!jodsfbtf!up!b!ijhifs!uisftipme!up!%5-111!gps!pvu.pg.djuz!cvtjofttft/! 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Spokane Valley Municipal Code Page1/1 5.05.020 Business license registration required. A. Home Businesses. The following supplemental regulations apply to all home businesses. A. Every person engaging in business shall register such person’s business with the City. License registration shall include completion of a registration request, payment of any applicable license registration fees, and receipt of endorsement or approval of the license registration application by the City. If more than one business is located on a single premises, including residential home-based businesses, separate license registrations shall be required for each separate business conducted. Businesses with more than one City location shall register each location separately. B. Valid License Registration. No person may engage in business in the City or with the City without first having obtained and being the holder of a valid annual Washington State business license registration, and a valid annual City license registration. C. The city manager is hereby authorized to enter into an agreement with the State of Washington Master License Service, its successor, or any other entity as allowed by law under which that agency shall accept and process City business license registration applications. D. Threshold for Out-of-City Businesses. For purposes of the license registration by Chapter 5.05 SVMC, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $2,000 $4,000 and who does not maintain a place of business within the City shall submit a business license registration to the City. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. The threshold amount will be adjusted every forty-eight months with the first adjustment occurring on January 1, 2030, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. The Spokane Valley Municipal Code is current through Ordinance No. 24-019, and legislation passed through February 4, 2025. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Administrative Report: Purdue and Secondary Manufacturer Opioid Settlements GOVERNING LEGISLATION: SVMC 2.15.020. PREVIOUS COUNCIL ACTION TAKEN: (1) April 26, 2022 Approval of One Washington MOU; (2) July 19, 2022 - opioid distributors (“Settlement I”); (3) March 21, 2023 - pharmacies and manufacturers (“Settlement II”); (4) August 29, 2023 – MOU Establishing Opioid Abatement Council; and (5) April 30, 2024 - Johnson & Johnson; (6) July 16, 2024 – Kroger. BACKGROUND: Over the course of the previous three years, the State of Washington and litigating local jurisdictions secured settlements against various entities involved in the production, sale, and distribution of opioids. City Council chose to participate in each of the settlements secured by the State of Washington against various entities contributing to the opioid crisis, which include the following: The distributors settlement (“Settlement I”). The City is expected to receive a total of $140,844.29 through 2038, with payments ranging from $5,773 to $9,727.98 per year. The pharmacies and manufactures settlement (“Settlement II”). The City anticipates receiving a total amount similar to Settlement I over the course of 15 years. The national opioid settlement administrator has yet to provide the exact breakdown for local governments for Settlement II; however, estimates from the Attorney General show that the City is expected to receive a total of $140,021.39 through 2037 with payments ranging from $3,152.36 to $11,784.51 per year. The Johnson & Johnson settlement (“Settlement III”), included a one-time payment of $37,680.96 to the City. The Kroger settlement (“Settlement IV). Estimates from the Attorney General show that the City is expected to receive a total of $15,342.32 through 2035 with payments ranging from $1,256.81 to $1,478.60 per year. In addition, a class-action lawsuit against McKinsey & Company was finalized in February 2024. Entities that entered into prior settlements were eligible to automatically receive funds from the McKinsey settlement. The City received $2,895.79 from the McKinsey settlement in September, 2024. Purdue and Sackler Settlement The new Purdue Pharmaceuticals and Sackler Family settlement will include payments to the State of Washington of approximately $105.6 million over the course of 15 years. The City is expected to receive approximately $33,958.46 after attorneys fees. The deadline to opt-in and send the required documentation to participate in the proposed settlement is September 30, 2025. Purdue Pharmaceuticals is currently in bankruptcy proceedings, which has complicated the settlement of the claims. Of note, the United States Supreme Court overturned a Chapter 11 Plan of Reorganization from 2021 sending the proceedings back to the Bankruptcy Court. This year, the debtors presented a new Plan of Reorganization to the Bankruptcy Court for approval. The City has the option of voting to accept or reject the bankruptcy plan, but voting does not affect the City’s ability to participate in the settlement. The votes will be considered by the Bankruptcy Court in determining whether to confirm or reject the plan. The City is not represented in these proceedings, but nevertheless participates as one of the defined class members. Secondary Manufacturer’s Settlement In addition to the Purdue Pharmaceuticals settlement, there is a new settlement with eight manufacturers including Alvogen, Amneal, Apotex, Kima, Indivior, Mylan, Sun and Zydus (the “Secondary Manufacturers Settlement”). The deadline to opt-in and send the required documentation to participate in the proposed settlement is October 8, 2025. The State is expected to receive approximately $16.6 million over the course of 10 years. The City is expected to receive approximately $5,338.26 after attorneys fees. The amounts above for both proposed settlements assume participation by every eligible jurisdiction. If participation decreases, the overall share for local governments may also decrease. Thus far, all eligible local jurisdictions have participated in the prior settlements. Similar to the other settlements, the City is required to execute the respective Settlement Participation Forms, as well as an Allocation Agreement in order to receive funds from the Purdue/Sackler Settlement and the Secondary Manufacturers Settlement. Without the Settlement Participation Forms and the releases therein, the City will not receive any funds. The City may be able to seek damages separate and apart from the settlement if it does not participate, but the City Attorney’s office does not recommend that course of action given the time, expense, and the uncertain success of such claims. According to the Attorney General’s calculation for participating local jurisdictions, the total amount the City is expected to receive from all settlements is approximately $395,990.88. In total, the City has received approximately $121,148.36 from the settlements to date. City Council recently approved an agreement with the Spokane Regional Health District (“SRHD”) to expand their opioid dashboard ($16,900), and conduct a needs assessment for the City ($40,300). City Council also provided consensus to enter into an agreement supporting the County’s Spokane Regional Crisis Stabilization Center expansion, which is currently being reviewed by the County. OPTIONS: Consensus to place this item on a future agenda for motion consideration for one, both or none of the proposed settlement agreements; or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: Consensus to place item on future agenda for motion consideration for both settlements. BUDGET/FINANCIAL IMPACTS: To date, the City has received approximately $121,148.36 as a result of the opioid settlements. These funds must be used for opioid remediation purposes. STAFF CONTACT: Kelly Konkright, City Attorney Tony Beattie, Senior Deputy City Attorney ___________________________________________________________________________ ATTACHMENTS: Purdue Settlement Participation Form Secondary Manufacturer’s Settlement Participation Form Allocation Agreement IV Due to the number of pages the full settlement agreements and Plan of Reorganization Disclosure Statements are available in electronic format at www.nationalopioidsettlement.com and https://restructuring.ra.kroll.com/purduepharma/Home- DocketInfo?DocAttribute=4218&DocAttrName=PlanDisclosureStatement&MenuID=9013&AttributeNa me=Plan%20%26%20Disclosure%20Statement. Purdue Settlement Participation Form EXHIBIT K Subdivision Participation and Release Form Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Email: Governmental Entity order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to that certain Governmental Entity & Shareholder Direct Settlement Agreement accompanying this 1 participation form (the Agreement, and acting through the undersigned authorized official, hereby elects to participate in the Agreement, grant the releases set forth below, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Agreement, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Agreement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall promptly after the Effective Date, and prior to the filing of the Consent Judgment, dismiss with prejudice any Shareholder Released Claims and Released Claims that it has filed. With respect to any Shareholder Released Claims and Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com. 3. The Governmental Entity agrees to the terms of the Agreement pertaining to Participating Subdivisions as defined therein. 4. By agreeing to the terms of the Agreement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning following the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Agreement solely for the purposes provided therein. 6. The Governmental Entity submits to the jurisdiction of the court in the Governmental as and to the extent provided in, and for resolving disputes to the extent provided in, the 1 Capitalized terms used in this Exhibit K but not otherwise defined in this Exhibit K have the meanings given to them in the Agreement or, if not defined in the Agreement, the Master Settlement Agreement. K-1 Agreement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the Agreement. 7. The Governmental Entity has the right to enforce the Agreement as provided therein. 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Agreement, including without limitation all provisions of Article 10 (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Subdivision Releasor, to the maximum extent of its authority, for good and valuable consideration, the adequacy of which is hereby confirmed, the Shareholder Released Parties and Released Parties are, as of the Effective Date, hereby released and forever discharged by the Governmental Entity and its Subdivision Releasors from: any and all Causes of Action, including, without limitation, any Estate Cause of Action and any claims that the Governmental Entity or its Subdivision Releasors would have presently or in the future been legally entitled to assert in its own right (whether individually or collectively), notwithstanding section 1542 of the California Civil Code or any law of any jurisdiction that is similar, comparable or equivalent thereto (which shall conclusively be deemed waived), whether existing or hereinafter arising, in each case, (A) directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor (each such release, as it pertains to the Shareholder ReleaseShareholder Released Claims Released Claims. For the avoidance of doubt and without limiting the foregoing: the Shareholder Released Claims and Released Claims include any Cause of Action that has been or may be asserted against any Shareholder Released Party or Released Party by the Governmental Entity or its Subdivision Releasors (whether or not such party has brought such action or proceeding) in any federal, state, or local action or proceeding (whether judicial, arbitral, or administrative) (A) directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor. 9. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Shareholder Released Claims or Released Claims against any Shareholder Released Party or Released Party in any forum whatsoever, subject in all respects to Section 9.02 of the Master Settlement Agreement. The releases provided for herein holder Released K-2 are intended by the Governmental Entity and its Subdivision Releasors to be broad and shall be interpreted so as to give the Shareholder Released Parties and Released Parties the broadest possible release of any liability relating in any way to Shareholder Released Claims and Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Agreement shall be a complete bar to any Shareholder Released Claim and Released Claims. 10. Parties and the Released Parties are, as of the Effective Date, hereby released and discharged from any and all Shareholder Released Claims and Released Claims of the Subdivision Releasors. 11. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Agreement. 12. In connection with the releases provided for in the Agreement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Shareholder Released Claims or such other Claims released pursuant to this release, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Shareholder Released Claims or such other Claims released pursuant to this release that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault decision to participate in the Agreement. 13. Nothing herein is intended to modify in any way the terms of the Agreement, to which Governmental Entity hereby agrees. To the extent any portion of this Participation and Release Form not relating to the release of, or bar against, liability is interpreted differently from the Agreement in any respect, the Agreement controls. 14. Notwithstanding anything to the contrary herein or in the Agreement, (x) nothing herein shall (A) release any Excluded Claims or (B) be construed to impair in any way the rights and obligations of any Person under the Agreement; and (y) the Releases set forth herein shall be subject to being deemed void to the extent set forth in Section 9.02 of the Master Settlement Agreement. K-3 I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature: _____________________________ Name: _____________________________ Title: _____________________________ Date: _____________________________ K-4 Secondary Manufacturer’s Settlement Participation Form EXHIBIT K Secondary Manufacturers’ Combined Subdivision Participationand ReleaseForm (“Combined Participation Form”) Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Email: The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to each of the settlements which are listed in paragraph 1 below (each a “Secondary Manufacturer’s Settlement” and collectively, “the Secondary Manufacturers’ Settlements”), and acting through the undersigned authorized official, hereby elects to participate in each of the Secondary Manufacturers’ Settlements, release all Released Claims against all Released Entities in each of the Secondary Manufacturers’ Settlements, and agrees as follows. 1. The Participating Entity hereby elects to participate in each of the following Secondary Manufacturers’ Settlements as a Participating Entity: a. Settlement Agreement for Alvogen, Inc. dated April 4, 2025. b. Settlement Agreement for Apotex Corp. dated April 4, 2025. c. Settlement Agreement for Amneal PharmaceuticalsLLCdated April 4, 2025. d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025. e. Settlement Agreement for Indivior Inc. dated April 4, 2025. f. Settlement Agreement for Viatris Inc. (“Mylan”) dated April 4, 2025. h. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4, 2025. i. Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. dated April 4, 2025. 2. The Governmental Entity is aware of and has reviewed each of the Secondary Manufacturers’ Settlements, understands that all capitalized terms not defined in this Combined Participation Form have the meanings defined in each of the Secondary Manufacturers’ Settlements, and agrees that by executing this Combined Participation Form, the Governmental Entity elects to participate in each of the Secondary Manufacturers’ Settlements and become a Participating Subdivision as provided in each of the Secondary Manufacturers’ Settlements. 3. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed against any Released Entity in each of the Secondary Manufacturers’ Settlements. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity K-1 authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudicefor each of the manufacturers listed in paragraph 1 above substantially in the form found at https://nationalopioidsettlement.com/additional-settlements/. 4. The Governmental Entity agrees to the terms of each of the Secondary Manufacturers’ Settlements pertaining to Participating Subdivisions as defined therein. 5. By agreeing to the terms of each of the Secondary Manufacturers’ Settlements and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 6. The Governmental Entity agrees to use any monies it receives through each of the Secondary Manufacturers’ Settlements solely for the purposes provided therein. 7. The Governmental Entity submits to the jurisdiction of the court and agrees to follow the process for resolving any disputes related to each Secondary Manufacturer’s Settlement as 1 described in each of the Secondary Manufacturers’ Settlements. 8. The Governmental Entity has the right to enforce each of the Secondary Manufacturers’ Settlements as provided therein. 9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in each of the Secondary Manufacturers’ Settlements, including without 2 limitation all provisions related to release of any claims, and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in each of the Secondary Manufacturers’ Settlements in any forum whatsoever. The releases provided for in each of the Secondary Manufacturers’ Settlements are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in each of the Secondary Manufacturers’ Settlements the broadest possible bar against any liability relating in any 1 See Settlement Agreement for Alvogen, Inc. Section VII.F.2; Settlement Agreement for Apotex Corp. Section VII.F.2; Settlement Agreement for Amneal Pharmaceuticals LLC Section VII.F.2; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section VII.F.2; Settlement Agreement for Indivior Section VI.F.2; Settlement Agreement for Mylan Section VI.F.2; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section VII.F.2; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section VII.F.2. 2 See Settlement Agreement for Alvogen, Inc. Section XI; Settlement Agreement for Amneal Pharmaceuticals LLC Section X; Settlement Agreement for Apotex Corp. Section XI; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section XI; Settlement Agreement for Indivior Section X; Settlement Agreement for Mylan Section X; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section XI; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section XI. K-2 way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. Each of the Secondary Manufacturers’ Settlementsshall be a complete bar to any Released Claim against that manufacturer’s Released Entities. 10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in each of the Secondary Manufacturers’ Settlements. 11. In connection with the releases provided for in each ofthe Secondary Manufacturers’ Settlements, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that,if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims in each of the Secondary Manufacturers’ Settlements, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in each of the Secondary Manufacturers’ Settlements. 12. The Governmental Entity understands and acknowledges that each of the Secondary Manufacturers’ Settlements is an independent agreement with its own terms and conditions. Nothing herein is intended to modify in any way the terms of any ofthe Secondary Manufacturers’ Settlements, to which Governmental Entity hereby agrees, aside from the exceptions in paragraph 13 below. To the extent this Combined Participation Form is interpreted differently from any of theSecondary Manufacturers’ Settlementsin any respect, theindividual Secondary Manufacturer’s Settlement controls. 13. For the avoidance of doubt, in the event that some but not all of the Secondary Manufacturers’ Settlements proceed past their respective Reference Dates, all releases and other commitments or obligations shall become void only as to those Secondary Manufacturers’ Settlements that fail to proceed past their Reference Dates. All releases and other commitments or obligations (including those contained in this Combined Participation Form) shall remain in full effect as to each Secondary Manufacturer’s Settlement that proceeds past its Reference Date, and this Combined Participation Form need not be modified, returned, or destroyed as long as any Secondary Manufacturer’s Settlement proceeds past its Reference Date. K-3 I have all necessary power and authorization to execute this Combined ParticipationForm on behalf of the Governmental Entity. Signature: _____________________________ Name: _____________________________ Title: _____________________________ Date: _____________________________ K-4 Allocation Agreement IV WASHINGTON STATE ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF FUNDS PAID BY THE PURDUE BANKRUPTCY, SACKLERS, AND CERTAIN OPIOID MANUFACTURERS JULY 24, 2025 This Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers (the ÐAllocation Agreement IVÑ) governs the distribution of funds obtained from (1) the Purdue Bankruptcy and Sackler Direct Claims Settlement, (2) the Alvogen Settlement, (3) the Amneal Settlement, (4) the Apotex Settlement, (5) the Hikma Settlement, (6) the Indivior Settlement, (7) the Mylan Settlement, (8) the Sun Settlement, and (9) the Zydus Settlement in connection with the resolution of any and all claims by the State of Washington and the eligible counties, cities, and towns in Washington State (ÐLocal GovernmentsÑ) against the Settling Entities defined in the respective Settlement Agreements via the following settlements and bankruptcy plan of reorganization: th  (1) The 13 Amended Joint Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors (the ÐPurdue PlanÑ) , including and amendments thereto and all ÐPlan DocumentsÑ as defined therein, if the ÐEffective DateÑ as defined therein has occurred; (2) the Master Settlement Agreement By and Among the Master Disbursement Trust, Each of the Parties Listed On Exhibit A Hereto, Each of the Parties Listed on Exhibit B Hereto, the Sackler PartiesÓ Representative and PR L.P. and any subsequent amendments, and (3) Government Entity & Shareholder Direct Settlement Agreement and any subsequent amendments (collectively, the ÐPurdue Bankruptcy and Sackler Direct Claims SettlementÑ).  Alvogen Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐAlvogen SettlementÑ).  Amneal Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐAmneal SettlementÑ).  Apotex Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐApotex SettlementÑ).  Hikma Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐHikma SettlementÑ).  Indivior Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐIndivior SettlementÑ).  Mylan Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐMylan SettlementÑ).  Sun Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐSun SettlementÑ) 1 Zydus Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐZydus SettlementÑ) Collectively, the Purdue Bankruptcy and Sackler Settlement, Alvogen Settlement, Amneal Settlement, Apotex Settlement, Hikma Settlement, Indivior Settlement, Mylan Settlement, Sun Settlement, and the Zydus Settlement shall be referred to as Ðthe SettlementsÑ. The Settlements can be accessed at https://nationalopioidsettlement.com/ and the Purdue Plan can be accessed at https://restructuring.ra.kroll.com/purduepharma/Home- DocketInfo?DocAttribute=4218&DocAttrName=PlanDisclosureStatement&MenuID=9013&Att ributeName=Plan%20%26%20Disclosure%20Statement.The terms and definitions of each of the respective Settlements are incorporated into this Allocation Agreement IV, and any undefined terms in this Allocation Agreement IV are as defined in the Settlements. 1. This Allocation Agreement IV is intended to be a State-Subdivision Agreement as defined in the Settlements. This Allocation Agreement IV shall be interpreted to be consistent with the requirements of a State-Subdivision Agreement in the Settlements. 2. This Allocation Agreement IV shall become effective with respect to a Settlement only if all of the following occur: A. The State of Washington joins such Settlement and becomes a Settling State as provided for in the respective Settlement and, with respect to the Purdue Bankruptcy and Sackler Settlement the State of Washington votes in favor of the Purdue Plan or does not vote against the Purdue Plan, and does not object to the confirmation of the Purdue Plan. B. Such Settlement becomes final and effective and a Consent Judgment that applies to Washington is filed and approved as provided for in the respective Settlement. For the Purdue Bankruptcy, the ÐEffective DateÑ as defined in the Purdue Plan has occurred. C. The number of Local Governments that execute and return this Allocation Agreement IV satisfies the participation requirements for a State- Subdivision Agreement as specified in such Settlement. 3. Requirements to become a Participating Local Government. To become a Participating Local Government that can participate in this Allocation Agreement IV with respect to any one of the Settlements, a Local Government must do all of the following: A. The Local Government must execute and return this Allocation Agreement IV. B. The Local Government must do the following: i. Release its claims against the Settling Entities identified in the respective Settlements and agree to be bound by the terms of the 2 Settlements by timely executing and returning the Participation Form for that Settlement and any other necessary documents. ii. Additionally, for the Purdue Bankruptcy and Sackler Direct Claims Settlement, either (1) vote in favor of or (2) abstain from voting on the Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors, and (3) not object to the confirmation of the Purdue Plan. C. Litigating Subdivisions, also referred to as Litigating Local Governments, must dismiss the Settling Entities identified in the respective Settlement with prejudice from their lawsuits. D. Each Local Government that is eligible to participate in this Allocation Agreement IV has previously executed and signed the One Washington Memorandum of Understanding Between Washington Municipalities (ÐMOUÑ) agreed to by the Participating Local Governments in Washington State, which is attached hereto as Exhibit 1. By executing this Allocation Agreement IV, the Local Government agrees and affirms that the MOU applies to and shall govern the LG Share, as defined below, as modified by this Allocation Agreement IV for each of the Settlements in which the Local Government participates. A Local Government that meets all of the conditions in this paragraph for any of the Settlements shall be deemed a ÐParticipating Local GovernmentÑ for that Settlement. A Local Government can be a ÐParticipating Local GovernmentÑ for less than all of the Settlements. If a Local Government is a Participating Local Government for less than all of the Settlements, the Local Government can only receive a portion of the Washington Abatement Amount for the specific Settlement(s) for which it is a Participating Local Government. 4. The allocations set forth in this Allocation Agreement IV apply to the following, all of which collectively shall be referred to as the ÐWashington Abatement AmountÑ: A. For the Purdue Bankruptcy and Sackler Settlement, all amounts (collectively, ÐWashington DistributionsÑ) that are apportioned to Washington as Estate Distributions or from the Shareholder Direct Settlement Portion, including, without limitation, those to WashingtonÓs State Fund, Remediation Accounts Fund, Subdivision Fund, Direct Payment, Earned Direct Payment, and Estate Distributions for Washington and all Participating Local Governments for the Purdue Bankruptcy and Sackler Settlement, provided, however, that for the purposes of the allocations set forth in this Allocation Agreement IV, Washington Distributions shall not include StateÓs Fees and Costs (as defined below). This Allocation Agreement IV shall be considered a State-Subdivision 3 Agreement under the Government Entity & Shareholder Direct Settlement Agreement. B. For the Alvogen Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. C. For the Amneal Settlement, the State of WashingtonÓs (1) State Allocation and (2) Additional Remediation Amount. D. For the Apotex Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. E. For the Hikma Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. F. For the Indivior Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. G. For the Mylan Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. H. For the Sun Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. I. For the Zydus Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. As specified in each of the Settlements, the Washington Abatement Amount will vary depending on the percentage of Participating Local Governments and whether there are any Later Litigating Subdivisions. 5. The (1) Amneal Settlement, (2) Hikma Settlement, and (3) Indivior Settlement each provide the option for Settling States to obtain Settlement Product or the discretion to convert any portion of the Settlement Product allocated to the Settling State into a cash value as specified in those Settlements of the Settling StateÓs allocated Settlement Product in specified years. It shall be solely the decision of the State regarding whether to convert any portion of the Settlement Product allocated to Washington into a cash value or to obtain the Settlement Product for each of those Settlements. If the State elects to obtain Settlement Product for a particular Settlement, the State in its sole discretion shall make all decisions related to the Settlement Product, including but not limited to where, how, and to whom it shall be distributed. For purposes of calculating the division of the Washington Abatement Amount in Paragraph 10 of this Allocation Agreement IV, the Settlement Product allocated to Washington shall be considered ÐState ShareÑ and shall have the cash conversion value assigned to it in the respective Settlement Agreements, i.e., the ÐSettlement Product Cash Conversion AmountÑ or the ÐCash Conversion AmountÑ identified in those settlements. 4 6. The allocations set forth in this Allocation Agreement IV do not apply to (i) the State Cost Fund, State AG Fees and Costs, State Expense Fund, State AG Fees, State Direct Expenses, or any attorneysÓ fees, fees, costs, or expenses referred to in the Settlement or via Fee Petitions or that are paid directly or indirectly via the Settlements or court order to the State of Washington and/or its outside counsels (ÐStateÓs Fees and CostsÑ) or to (ii) any payments made to Participating Subdivisions pursuant to section 5.9 of the Purdue Plan, which provides for a Local Government Fee Fund. 7. This Allocation Agreement IV and the MOU are a State Back-Stop Agreement. The Settling Entities are paying a portion of the Local GovernmentsÓ attorneysÓ fees and costs as provided for in the Settlements. The total contingent fees an attorney receives from the Contingency Fee Fund in the Settlements, the MOU, and this Allocation Agreement IV combined cannot exceed 15% of the portion of the LG Share paid to the Litigating Local Government that retained that firm to litigate against the Settling Entities (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from the Walmart Settlement, then the maximum that the firm can receive is $150,000 for fees as to the Walmart Settlement; if City X did not retain the same firm for potential litigation against CVS and City X receives $1,000,000 from the CVS Settlement, then the firm receives no fees from the CVS Settlement.) 8. No portion of the StateÓs Fees and Costs and/or the State Share as defined in Paragraphs 6 and 10 of this Allocation Agreement IV shall be used to fund the Government Fee Fund (ÐGFFÑ) referred to in Paragraph 12 of this Allocation Agreement IV and Section D of the MOU, or in any other way to fund any Participating Local GovernmentÓs attorneysÓ fees, costs, or common benefit tax. 9. The Washington Abatement Amount shall and must be used by the State and Participating Local Governments for future Opioid Remediation as defined in the Settlements, except as allowed by the Settlements. 10. The State and the Participating Local Governments agree to divide the Washington Abatement Amount as follows: A. Fifty percent (50%) to the State of Washington (ÐState ShareÑ). B. Fifty percent (50%) to the Participating Local Governments (ÐLG ShareÑ). 11. The LG Share shall be distributed to Participating Local Governments pursuant to the MOU attached hereto as Exhibit 1 as amended and modified in this Allocation Agreement IV. 12. For purposes of this Allocation Agreement IV only, the MOU is modified as follows and any contrary provisions in the MOU are struck: 5 A. Exhibit A of the MOU is replaced by the Exhibit specifying the List of Opioid Remediation Uses for each of the respective Settlements, which generally can be found at Exhibit E of the respective Settlements. B. The definition of ÐLitigating Local GovernmentsÑ in Section A.4 of the MOU shall mean Litigating Subdivisions as defined in each the respective Settlements and shall also include any local government that notified Judge Polster in Case No. 1:17-md-02804-DAP of its intent to sue any of the settling entities that are covered by this Allocation Agreement. C. The definition of ÐNational Settlement AgreementÑ in Section A.6 of the MOU shall mean the Settlements. D. The definition of ÐSettlementÑ in Section A.14 of the MOU shall mean the Settlements and expressly includes the Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors. E. The MOU is amended to add new Section C.4.g.vIV, which provides as follows: ÐIf a Participating Local Government receiving a direct payment (a) uses Opioid Funds other than as provided for in the respective Settlements, (b) does not comply with conditions for receiving direct payments under the MOU, or (c) does not promptly submit necessary reporting and compliance information to its Regional Opioid Abatement Counsel (ÐRegional OACÑ) as defined at Section C.4.h of the MOU, then the Regional OAC may suspend direct payments to the Participating Local Government after notice, an opportunity to cure, and sufficient due process. If direct payments to Participating Local Government are suspended, the payments shall be treated as if the Participating Local Government is foregoing their allocation of Opioid Funds pursuant to Section C.4.d and C.4.j.IVi of the MOU. In the event of a suspension, the Regional OAC shall give prompt notice to the suspended Participating Local Government and the Settlement Fund Administrator specifying the reasons for the suspension, the process for reinstatement, the factors that will be considered for reinstatement, and the due process that will be provided. A suspended Participating Local Government may apply to the Regional OAC to be reinstated for direct payments no earlier than five years after the date of suspension.Ñ F. The amounts payable to each law firm representing a Litigating Local Government from the GFF shall be consistent with the MOU and the process set forth in the Order Appointing the Fee Panel to Allocate and Disburse AttorneyÓs Fees Provided for in State Back-Stop Agreements, Case No. 1:17-md-02804-DAP Doc #: 4543 (June 17, 2022). 6 G. The GFF set forth in the MOU shall be funded by the LG Share of the Washington Abatement Amount only. To the extent the common benefit tax is not already payable by the Settling Entities as contemplated by Section D.8 of the MOU, the GFF shall be used to pay Litigating Local Government contingency fee agreements and any common benefit tax referred to in Section D of the MOU, which shall be paid on a pro rata basis to eligible law firms as determined by the Settlement Administrator. H. To fund the GFF, fifteen percent (15%) of the LG Share shall be deposited in the GFF from each LG Share settlement payment until the Litigating SubdivisionsÓ contingency fee agreements and common benefit tax (if any) referred to in Section D of the MOU are satisfied. Under no circumstances will any Primary Subdivision or Litigating Local Government be required to contribute to the GFF more than 15% of the portion of the LG Share allocated to such Primary Subdivision or Litigating Local Government. In addition, under no circumstances will any portion of the LG Share allocated to a Litigating Local Government be used to pay the contingency fees or litigation expenses of counsel for some other Litigating Local Government. I. The maximum amount of any Litigating Local Government contingency fee agreement (from the Contingency Fee Fund of the respective Settlements) payable to a law firm permitted for compensation shall be fifteen percent (15%) of the portion of the LG Share paid to the Litigating Local Government that retained that firm (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from a Settlement, then the maximum that the firm can receive is $150,000 for fees.) The firms also shall be paid documented expenses due under their contingency fee agreements that have been paid by the law firm attributable to that Litigating Local Government. Consistent with Agreement on AttorneysÓ Fees, Costs, and Expenses, which is Exhibit R of the Settlements, as well as the Purdue Plan, amounts due to Participating Litigating SubdivisionsÓ attorneys under this Allocation Agreement IV shall not impact (i) costs paid by the subdivisions to their attorneys pursuant to a State Back-Stop agreement, (ii) fees paid to subdivision attorneys from the Common Benefit Fund for common benefit work performed by the attorneys pursuant to Exhibit R of the Settlements, or (iii) costs paid to subdivision attorneys from the MDL Expense Fund for expenses incurred by the attorneys pursuant to the Settlements. J. Under no circumstances may counsel receive more for its work on behalf of a Litigating Local Government than it would under its contingency agreement with that Litigating Local Government. To the extent a law firm was retained by a Litigating Local Government on a contingency fee agreement that provides for compensation at a rate that is less than fifteen percent (15%) of that Litigating Local GovernmentÓs recovery, the maximum amount payable to that law firm referred to in Section D.3 of 7 the MOU shall be the percentage set forth in that contingency fee agreement. K. For the avoidance of doubt, both payments from the GFF and the payment to the Participating Litigating Local GovernmentsÓ attorneys from the Contingency Fee Fund in the respective Settlements as well as any payments made to Participating Subdivisions pursuant to section 5.9 of the Purdue Plan shall be included when calculating whether the aforementioned fifteen percent (15%) maximum percentage (or less if the provisions of Paragraph 10.J of this Allocation Agreement IV apply) of any Litigating Local Government contingency fee agreement referred to above has been met. L.To the extent there are any excess funds in the GFF, the Settlement Administrator shall facilitate the return of those funds to the Participating Local Governments as provided for in Section D.6 of the MOU. 13. In connection with the execution and administration of this Allocation Agreement IV, the State and the Participating Local Governments agree to abide by the Public Records Act, RCW 42.56 et seq. 14. All Participating Local Governments, Regional OACs, and the State shall maintain all non-transitory records related to this Allocation Agreement IV as well as the receipt and expenditure of the funds from the Settlements for no less than five (5) years. 15. If any party to this Allocation Agreement IV believes that a Participating Local Government, Regional OAC, the State, an entity, or individual involved in the receipt, distribution, or administration of the funds from the Settlements has violated any applicable ethics codes or rules, a complaint shall be lodged with the appropriate forum for handling such matters, with a copy of the complaint promptly sent to the Washington Attorney General, Complex Litigation Division, Division Chief, 800 Fifth Avenue, Suite 2000, Seattle, Washington 98104. 16. To the extent (i) a region utilizes a pre-existing regional body to establish its Opioid Abatement Council pursuant to the Section 4.h of the MOU, and (ii) that pre-existing regional body is subject to the requirements of the Community Behavioral Health Services Act, RCW 71.24 et seq., the State and the Participating Local Governments agree that the Opioid Funds paid by the Settling Entities are subject to the requirements of the MOU and this Allocation Agreement IV. 17. Upon request by any of the Settling Entities, the Participating Local Governments must comply with the Tax Cooperation and Reporting provisions of the respective Settlement. 8 18.Venue for any legal action related to this Allocation Agreement IV (separate and apart from the MOU or the Settlements) shall be in King County, Washington. Washington law shall govern any dispute. 19.Each party represents that all procedures necessary to authorize such partyÓs execution of this Allocation Agreement IV have been performed and that such person signing for such party has been authorized to execute this Allocation Agreement IV. 9 FOR THE PARTICIPATING LOCAL GOVERNMENT: Name of Participating Local Government: Authorized signature: Name: Title: Date: 11 EXHIBIT 1 One Washington Memorandum of Understanding Between Washington Municipalities 12 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Hazard Mitigation Plan Update GOVERNING LEGISLATION: The City of Spokane Valley is a party to the regional Amended Interlocal Agreement with Spokane County Emergency Management (SCEM) for emergency management services established pursuant to: RCW 39.34, Interlocal Cooperation Act RCW 38.52.070, Local organizations and joint local organizations authorized -- Establishment, operation -- Emergency powers, procedures Communication plans. PREVIOUS COUNCIL ACTION TAKEN Hazard Mitigation Plan (HMP) requires a Statement of Intent to Participate from the jurisdictions currently annexed into the plan. On January 30, 2024, the City Council provided consensus to move forward with the Statement of Intent to Participate in the 2025 update. The process was delayed until 2025 due to a delay in federal FEMA funding. BACKGROUND: The Spokane County Multi-Jurisdictional Hazard Mitigation Plan is intended to reduce or eliminate the potential for loss of life and/or property damage from natural or human- caused hazards. The plan identifies the risks and vulnerabilities present across Spokane County and includes strategies and actions which can lessen the impact of the identified hazards before they occur. The City of Spokane Valley is one of several agencies that has a chapter (annex) within the larger County plan. The plan can be found at www.spokanecounty.gov/1939/Mitigation- Plan. The HMP is updated every five years and was last updated in 2020. Having a current, FEMA- approved Mitigation Plan is a prerequisite for accessing funding through several federal and state programs. As a partner agency, the City must update our annex in the plan by providing current information about critical facilities, capabilities, hazard identification and risk rankings as well as reviewing/updating strategies from the prior action plan. Staff has been updating the annex since May and the update is almost complete. Some of the hazards addressed in the plan may include dam failures, earthquakes, floods, landslides, severe weather, wildfires and hazardous materials (hazmat). Staff has prepared a ranking that identifies risk and vulnerability of hazards in Spokane Valley since the last plan was completed in 2020. The team, along with representatives from fire and emergency management, will present the risk assessment and rankings data at the September 16 Community Conversations. Council and community will be able to provide input during this event. Additionally, the public can also participate in a survey on Spokane County Emergency HMP webpage. This questionnaire is designed to help gauge the level of knowledge citizens have about natural disaster issues and to find out from local residents about areas vulnerable to various types of natural disasters. This information will help the County coordinate activities to reduce the risk of injury or property damage in the future. to the survey at Community Conversations. The survey will remain open until after the public review period in mid to late October. The City will provide its updated annex to the consultant who will compile each partner agenc submittal into the draft plan. The consultant anticipates the draft plan will be available in early to mid-October and a public comment period will be announced at that time. After public review, the plan will be submitted to the State and FEMA for review. Once the County receives Approval Pending Adoption (APA), the final plan will be presented to the City Council for adoption. OPTIONS: N/A RECOMMENDED ACTION OR MOTION: Information only. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: Virginia Clough, Legislative Policy Coordinator/Project Manager DRAFT ADVANCE AGENDA as of September 3, 2025; 11:00 a.m. Please note this is a work in progress; items are tentative To: Council & Staff From: City Clerk, by direction of City Manager Re: Draft Schedule for Upcoming Council Meetings September 16, 2025 SPECIAL MEETING: Community Conversations, 5:00 p.m. September 16, 2025 Formal B Meeting, 6:00 p.m. \[due Tue Sept 9\] You Rock Recognition Award Proclamation: Valleyfest & Constitution Week 1. Public Hearing: Interim Ordinance Re: Communications Tower Height Restrictions K. Konkright (10 minutes) 2. Ordinance 25-XX: First Read Business License Threshold Mike Basinger (10 minutes) 3. Motion Consideration: 2026 TPA Budget & Work Plan - Lesli Brassfield (10 minutes) 4. Motion Consideration: Perdue Pharma & Allergan Opioid Settlements Tony Beattie (10 minutes) 5. Admin Report: Fireworks Regulations Discussion Kelly Konkright, Tony Beattie (10 minutes) \[*estimated meeting: 50 mins\] September 23, 2025 SPECIAL MEETING; Executive Session 5:00 p.m. September 23, 2025 Formal A Meeting, 6:00 p.m. \[due Tue Sept 16\] Proclamation: National Good Neighbor Day 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. PUBLIC HEARING #1: 2026 Revenues/Budget Chelsie Walls (10 minutes) 3. Ordinance 25-XX: Second Read Business License Threshold - Mike Basinger (10 minutes) 4. Motion Consideration: Set 2026 Budget Hearing for October 21 Chelsie Walls (10 minutes) 5. Admin Report: Ice Arena Discussion John Hohman (20 minutes) 6. Advance Agenda Mayor Haley (5 minutes) 7. Info Only: Department Monthly Reports; Fire Dept Monthly Report \[*estimated meeting: 60 mins\] September 30, 2025 Formal B Meeting, 6:00 p.m. \[due Tue Sept 23\] 1. PUBLIC HEARING: Solid Waste Management Plan Erik Lamb, Robert Blegen (10 minutes) 2. Motion Consideration: 2026 State Legislative Agenda Virginia Clough, Briahana Murray (10 minutes) 3. Admin Report: Flag Policy Discussion Kelly Konkright, Tony Beattie (10 minutes) 4. Admin Report: Fund 312 Discussion Chelsie Walls (10 minutes) October 7, 2025 Formal B Meeting, 6:00 p.m. \[due Tue Sept 30\] 1. Admin Report: Retail Strategies Annual Report Teri Stripes (20 minutes) October 14, 2025 Formal A Meeting, 6:00 p.m. \[due Tue Oct 7\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Admin Report: City Manager Presentation of 2026 Budget John Hohman (15 minutes) 3. Admin Report: 2026 Federal Legislative Agenda Virginia Clough, Mike Pieper (10 minutes) 4. Advance Agenda Mayor Haley (5 minutes) October 21, 2025 SPECIAL MEETING: Community Conversations, 5:00 p.m. 1. Admin Report: Proposed Ordinance adopting 2026 property taxes Chelsie Walls (10 minutes) October 21, 2025 Formal B Meeting, 6:00 p.m. \[due Tue Oct 14\] You Rock Recognition Award 1. PUBLIC HEARING #2: 2026 Budget - Chelsie Walls (10 minutes) 2. Admin Report: 2025 Budget Amendment Chelsie Walls (10 minutes) Draft Advance Agenda 9/4/2025 1:48:48 PM Page 1 of 2 October 28, 2025 Formal A Meeting, 6:00 p.m. \[due Tue Oct 21\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. PUBLIC HEARING: 2025 Budget Amendment Chelsie Walls (10 minutes) 3. Ordinance 25-XXX: First Read 2025 Budget Amendment Chelsie Walls (10 minutes) 4. Ordinance 25-XXX: First Read 2026 Budget - Chelsie Walls (10 minutes) 5. Motion Consideration: Federal Legislative Agenda Virginia Clough, Mike Pieper (10 minutes) 6. Advance Agenda Mayor Haley (5 minutes) 7. Info Only: Department Monthly Reports; Fire Dept Monthly Report November 4, 2025 Formal B Meeting, 6:00 p.m. ELECTION NIGHT- MTG CANCELED November 5, 2025 SPECIAL MEETING, 6:00 p.m. \[due Tue Oct 29\] 1. Ordinance 25-XXX: First Read Property Tax Ordinance Chelsie Walls (10 minutes) November 11, 2025 Formal A Meeting, 6:00 p.m. CANCELED - HOLIDAY November 18, 2025 SPECIAL MEETING: Community Conversations, 5:00 p.m. November 18, 2025 Formal B Meeting, 6:00 p.m. \[due Tue Nov 11\] You Rock Recognition Award 1. Admin Report: LTAC Recommendations - Chelsie Walls (10 minutes) 2. Ordinance 25-XXX: Second Read Property Tax Ordinance Chelsie Walls (10 minutes) November 25, 2025 Formal A Meeting, 6:00 p.m. \[due Tue Nov 18\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. PUBLIC HEARING #3: Final 2026 Budget Chelsie Walls (10 minutes) 3. Admin Report: 2026 Fee Resolution Chelsie Walls (10 minutes) 4. Advance Agenda Mayor Haley (5 minutes) 5. Info Only: Department Monthly Reports; Fire Dept Monthly Report *time for public or council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Autonomous Vehicle Regulations Compression Brake Discussion Energy Code Fairchild Air Force Base Update Fireworks Code Lithium-Ion Battery Policies Oversize & Overweight Vehicle Permit Paddy Wagon Services Peer Court Protection of Utility Infrastructures School Zone Cameras SCRAPS TPA Bid Fees Granicus Discussion Draft Advance Agenda 9/4/2025 1:48:48 PM Page 2 of 2