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HomeMy WebLinkAbout2025, 12-09 Formal A MeetingMINUTES City of Spokane Valley City Council Regular Meeting Formal Format A Tuesday, December 9, 2025 Mayor Haley called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in Council Chambers, and also remotely via Zoom meeting. Attendance: Councilmembers Staff Pam Haley, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Laura Padden, Councilmember Kelly Konkright, City Attorney Jessica Yaeger, Councilmember Chelsie Walls, Finance Director Rod Higgins, Councilmember John Bottelli, Parks & Rec Director Ben Wick, Councilmember Tony Beattie, Senior Deputy City Attorney Al Merkel, Councilmember Robert Blegen, Public Works Director Dave Ellis, Police Chief Jill Smith, Communications Manager John Whitehead, Human Resources Director Mike Basinger, Community & Econ. Dev. Director Virginia Clough, Legislative Policy Coordinator Dan Domrese, Accounting Manager Steve Roberge, Planning Manager Sarah Farr, Accting & Finance Program Manager Justan Kinsel, IT Specialist Marci Patterson, City Clerk INVOCATION: Ben Doehle with Valley Bible Church gave the invocation. PLEDGE OF ALLEGIANCE Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL City Clerk Patterson called roll; all Councilmembers were present. APPROVAL OF AMENDED AGENDA It was moved by Deputy Mayor Hattenburg and seconded to amend the agenda to change council reports to council comments. Vote by acclamation: in fm,or: Unanimous. Opposed.• None. Motion carried. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public. Karen Stromgren, Spokane Valley; Rev. Gen Heywood, Spokane County; Rev. Mark Finney, Spokane; Mike Dolan, Spokane Valley provided general comments. CONSENT AGENDA: 1. Consent Agenda: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Agenda. a. Approval of Claim Vouchers, December 9, 2025, Request for Council Action Form: $2,578,644.70. b. Approval of Payroll for Pay Period ending November 30, 2025: $753,527.46. Council Meeting Minutes: 12-09-2025 Pagel of 4 Approved by Council: 01-13-2026 c. Approval of Council Meeting Minutes of October 28, 2025 It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the Consent Agenda. ACTION ITEMS: 2. Ordinance 25-015: Second Read 2025 Budget Amendment — Chelsie Walls After City Clerk Patterson read the Ordinance title, it was moved by Deputy Mayor Hattenburg, seconded to approve Ordinance #25-015 amending Ordinance #24-015 which adopted a budget for the period January 1, 2025 through December 31, 2025, as subsequently amended by Ordinance #25-006. Ms. Walls gave a brief review of the items in the budget and noted that there were no changes since the previous presentation. Council discussed the bridge funding and solutions for fixing versus tearing down and rebuilding the bridge. City Manager Hohman stated that staff are looking at cost-effective options and more permanent solutions. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councilinembers Padden, Yaeger, Wick and Higgins. Opposed.- Councilmember Merkel. Motion carried. 3. Ordinance 25-017: Second Read 2026 Budget — Chelsie Walls After City Clerk Patterson read the Ordinance title, it was moved by Deputy Mayor Hattenburg, seconded to approve Ordinance #25-017 adopting the 2026 Budget. Ms. Walls noted that this is the 8th touch on the budget and that we have had three public hearings. She provided brief details on the FTE count and some of the budget totals and the general find balance. Council discussed the various touches on the budget and that we do detail all of the funds. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councilmembers Padden, Yaeger, Wick and Higgins. Opposed: Councilmember Merkel. Motion carried NON -ACTION ITEMS: 4. Admin Report: 2026 Fee Resolution — Dan Domrese Mr. Domrese presented a review of the 2026 master fee schedule resolution. He provided details on the current fees and some that had been updated. He pointed out the requests for the updated fees and the reasons for the updates as staff had presented at previous council meetings. Councilmember Merkel asked if there had been any more input from Assoc of Builders and Contractors. City Manager Hohman stated that there had not been any additional comments, but they previously stated that they understand the need for changes. Councilmember Wick added that the builders also noted that they didn't want to change the level of service at the city. Council provided consensus to return with the motion to approve the resolution. 5. Admin Report: LTAC Recommendations — Sarah Farr Ms. Farr gave details on the LTAC meeting and how funding was requested to be allocated. The motion from LTAC included finding Innovia ice arena for $600K for 2027, 2028 annually and $550K in 2029, 2030, 2031 with no lodging facility on the commercial site. She explained that the second motion was for $2M for the city from the capital side and the city must execute the ground lease for the ice arena. She noted that the motion consideration that would be at the meeting on the 16`1' was for all the recommended LTAC funding allocations. Council discussed the previous mentions of a hotel and now the exclusion of a hotel. City Manager Hohman spoke about the conditions with Innovia and that the city is not building a hotel or the ice arena and initially Innovia proposed the hotel as a placeholder on the commercial site. He noted that there is still an option for a commercial site for options that could assist the ice rink moving forward. Councilmember Merkel continued to question the commercial site and the hotel option and the city completing the process. Councilmember Higgins poised a point of order and stated that we have covered this multiple times. Mayor Haley agreed and tried to explain the process once more. After further discussion Deputy Mayor Hattenburg requested for consensus. Council provided consensus for the motion consideration to come back at a later meeting. 6. Admin Report: CTA-2025-0002 Wireless Communication Tower Height Reg Amendment — Steve Roberg Mr. Basinger gave background on the need for the change in code for the communication tower height. Mr. Roberge presented a PowerPoint presentation that included the wireless communication tower regulations Council Meeting Minutes: 12-09-2025 Page 2 of 4 Approved by Council: 0 1- 13-2026 amendment, the council related action and noted the emergency interim ordinance 25-013, and the proposed CTA. Councilmember Merkel asked if the concerns had been addressed. Mr. Basinger stated that they had addressed the concerns and further explained it had been it to the Planning Commission and they were comfortable with the interim ordinance and the city felt that the code needed to be changed permanently to reflect the emergency ordinance as well. Mr. Basinger also pointed out that the Planning Commission was being thoughtful and didn't want it included in residential zone, so that change was made and it is only allowed in commercial area. After further discussion, council provided consensus to return with the first read of the ordinance. INFORMATION ONLY (will not be reported or discussed) GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public; no comments were provided. COUNCILMEMBER RFXORT-8 COMMENTS Councilmember Yaeger spoke about her recent post and that her goal was never to divide anyone. Her post was meant to highlight the recent ongoing human tragedies, and the violence affecting innocent people worldwide. She spoke about misrepresentation by the media. She also spoke about the difficult conversations that council has had to have over the last week and that she hopes that this helps people realize that ugly and disturbing things are happening in the world. She spoke about the urgent need for peace worldwide and that violence anywhere is completely unaccepted. She will continue to stand on what is right. Her commitment is to unity, to Spokane Valley, to America, and the fundamental values that protect every resident. Councilmember Padden spoke about Councilmember Yaeger's post and the impact it has had on the city. Councilmember Higgins had nothing to comment on. Councilmember Wick stated that he agreed and concurred with council and wants our community to be safe for all and that public safety is a top priority. It doesn't matter the religion, and all are welcome in our city. He appreciated Councilmember Yaeger taking the opportunity to learn more and he is looking forward to also learning more about the communities we serve. Councilmember Merkel stated that he struggled with the statements from council and had lived 40% of his adult life in middle eastern communities, he doesn't see that we are being welcoming. He doesn't feel that the words that were spoken were an apology. He agrees that there are some practices that people shouldn't do, no matter the religion. He feels that most Muslim's that he knows are good people and that he is just disappointed and that he tried very hard to get council to take deeper action and was unsuccessful. City Attorney Konkright gave his opinion on what else council was supposed to do. He reviewed Councilmember Yaeger's post on her personal Facebook page, and it does not appear that there is a violation of the council conduct standards as noted in the Governance Manual chapter 5. Deputy Mayor Hattenburg stated that we represent all members of the city and that our history is veiy important. His challenge is that we do better and continue to represent all members of our community. MAYOR'S T-COMMENTS Mayor Haley thanked the community members of faith that came forward so gently and stated that she doesn't want anyone to feel like the trust has been broken. She noted that the Muslim community built a mosque in our city, so they must have felt safe and wants that to continue. ADVANCE AGENDA Councilmember Padden requested an update on the sale and use of kratom in our community. There was consensus to add that item to the advance agenda. Councilmember Wick requested the AWC CQC application be added to the city process and allow applications to be submitted to the city and that the city review the applications and put forward a name to AWC. Councilmember Wick spoke about an open process for review of the applications. Council provided consensus to move that forward promoting the AWC CQC application. Council Meeting Minutes: 12-09-2025 Page 3 of 4 Approved by Council: 01-13-2026 CITY MANAGER COMMENTS City Manager Hohman spoke about the current status on the Pines BNSF Grade Separation Project and noted that BNSF is back completing their phase of work and that the contractor ACI has completed the first leg of work as well. Mr. Hohman gave an update on the Sullivan Park waterline and said that it has been completed and is fully functional and was under budget. Mr. Hohman gave an update on the grants and noted that we received two grants from TIB, one for $2:4M for the BarkerAth roundabout project and $1.4M for the Sprague to 41' Ave Road project. He also thanked staff and council for the tree lighting event and thanked our community partners and our sponsors for their gracious donations for the event. EXECUTIVE SESSION Review of a Public Employee [RCW 42.30.110(1)(g)] (Proposed motion: I move Council adjourn into executive session for approximately 60 minutes to discuss the review of a public employee, and that no action will be taken upon return to open session.) It was moved by Deputy Mayor Hattenburg, seconded to adjourn into executive session for approximately 60 minutes to discuss the review of a public employee, and that no action will be taken upon return to open session. There was not any discussion. Vote by acclamation: in favor: Unanimous. Opposed.- None. Motion carried. Council adjourned into executive session at 7:34 p.m. At 8:34 p.m., Human Resources Director Whitehead requested to extend the Executive Session by an additional 15 minutes. Council reconvened at 8:46 p.m. It was moved by Mayor Haley, seconded and unanimously agreed to adjourn at 8: 46p. in. ATTEJ1 T: NAA Marci tterson, City Clerk Qol�'- \AaL Pam Haley, Mayor Council Meeting Minutes: 12-09-2025 Approved by Council: 01-13-2026 Page 4 of 4 PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, December 9, 2025 6:00 p.m. GENERAL PUBLIC COMMENT OPPORTUNITY #1 Please sign up to speak for up to THREE minutes and the Mayor will afford the public the opportunity to speak. The public comment opportunity is limited to a maximum of 45 minutes. You may only speak at one of the comment opportunities, not at both public comment opportunities. NAME PLEASE PRINT TOPIC YOU WILL SPEAK ABOUT YOUR CITY OF RESIDENCE � I Please note that once information is entered on this form, it becomes a public record subject to public disclosure. Mard Patterson From: Ciclista fluido <ciclistafluido22@gmail.com> Sent: Monday, December 1, 2025 7:17 AM To: Council Meeting Public Comment Subject: Jessica Yeager council member Spokane valley city council Follow Up Flag: Flag for follow up Flag Status: Flagged [EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or clicking links. Dear council members I am in support of free speech. Free libraries with no book bans despite my opposition to many racist, misogynistic books. I have had many conversations about my prejudices and have learned from conversations of others if I open my mind to other interpretations and perspectives. My request to you is that as a council you agree to host those of the Islamic communities to educate you and in turn us to their faith and beliefs. I believe we will all be better off for it. We all benefit from humility and honesty. These are our neighbors and workers we may interact with often and not know it. Please take this opportunity to request a meeting with this community and be open to their information. Education and compassion will build stronger communities. We need each other in a complex social system that is dominated by big corporations rather than our small businesses that we love and depend on. We are all in it together Thank you Shari mcevoy Spokane county wa Sent from my iPhone 0001*� Spokane jValle F 10210 E Sprague Avenue El Spokane Valley WA 99206 Y Phone: (509) 720-5000 ❑ www.SpokaneValleyWA.gov Memorandum To: Mayor and City Council From: Virginia Clough, Legislative Policy Coordinator Date: December 9, 2025 Re: Gordon Thomas Honeywell — Government Relations Legislative Report — Dec. 8, 2025 Please find attached the December 8 Gordon Thomas Honeywell — Government Relations' interim report. Key upcoming dates: • Week of December 15 — Gov. Ferguson's first regular budget release • January 12, 2026 — start of the 60-day short session • January 28-29, 2026 — City Council trip to Olympia • March 12, 2026 — scheduled end of the 2026 session Overview: • The budget shortfall did not worsen since September and the 2025-27 biennium estimated collections are about $105 million more than the September estimate. • The revenue forecast projects a $67 million decrease in the current biennium due to lower gas consumption and lower vehicle and truck registrations. • Governor has indicated he will veto sales or property tax increases and will focus on spending cuts rather than increasing revenue during this session. • Despite the Governor's focus on spending cuts, select legislators are still considering new revenue. o Sen. Frame — tax reform to achieve a more progressive tax structure o Rep. Scott intends to introduce three bills: ■ HB 2089 — closes tax loopholes for banks to fund wildfire mitigation account ■ HB 2100 establishes a $125,000 payroll tax for large employers to fund services such as Medicaid, due to federal government cuts ■ HB 2097 — authorizes counties to impose a B&O tax (modeled after the local B&O tax that cities have authority to impose) in addition to the state's B&O tax. • Legislators will likely revise taxes enacted in the 2025 session including: o SB 5814 — modifying the application and administration of certain excise taxes o HB 2101 — prefiled to exempt live presentation delivered in person to in - person participation from retail sales and use tax o SB 5819, prefiled by Sen. Christian, to ensure paid protestors are considered temporary staffing and are subject to retail sales and use taxes. Emerging Issues: o Allowing bargaining over matters related to use of artificial intelligence (HB 1622) o Regulation of E-Motorcycles (draft legislation in the works) o Housing Strategies such as land banking, shared homeownership, mixed - use development and transit -oriented development o Concerning mobile dwellings (HB 1443 and SB 5332) o Streamlining local government permitting to lower housing costs o Energy availability report (increased demand and major reliability gap in the electrical grid) o Model Toxics Control Act (MTCA) and its funding challenges o Public Safety Sales Tax Implementation (HB 2015) o FLOCK/Automated License Plate Reader Technology (draft legislation sponsored by Sen. Trudeau is circulating for feedback) o Public Defense Fundinq — Senate Law & Justice Committee held a work session on defense caseload standards and received agency updates • Committee Work Sessions: o Joint Transportation Committee o House Community Safety Committee o House Finance Committee o Senate Local Government Committee o Senate Ways and Means Committee o Senate Human Services Committee o House Local Government Committee o House Technology, Economic Development & Veterans (TEDV) Committee FYI - Not included in this report are the 2026 Committee assignments for the 4th District: Rep. Chase • Standing Committees: o House Education Committee o House Finance Committee o House State Government and Tribal Relations Committee • Joint Committees: o Legislative Oral History Committee Rep. Schmidt • Standing Committees: o House Labor & Workplace Standards Committee (Ranking Minority Member) o House Postsecondary Education & Workforce Committee o House Transportation Committee (Assistant Ranking Minority Member) Joint Committees o State Building Code Council o Washington State Institute for Public Policy o Child Support Guidelines and Report Review Work Group o Washington Employee Ownership Commission o Task Force on the Underground Economy in the Washington State Construction Industry Sen. Christian • Standing Committees: o Senate Health & Long -Term Care Committee o Senate Human Services Committee (Ranking Member) o Senate Transportation Committee • Joint Committees o Joint Legislative Audit & Review Committee (JLARC) o Child Support Guidelines and Report Review Work Group o Oversight Board for Children, Youth and Families o Interstate Compact on Educational Opportunity for Military Children GORDON THOMAS HONEYWELL GOVERNMENTRELATIONS City of Spokane Valley Interim Legislative Report December 8, 2025 There are less than 40 days until the 2026 Legislative Session begins. In November, the Economic and Revenue Forecast Council released the latest revenue estimates, providing additional information to help shape budget discussions. In the lead -up to session, state lawmakers returned to Olympia for Committee Assembly Days during the first week of December. Duringthis time, every standing committee (19 committees in the House and 14 committees in the Senate) and eight joint committees held work sessions on various subject areas, including presentations on agency reports, background information on committee policy areas, or briefings from staff related to the 2026 legislative session. Legislators began prefiling bills for the 2026 session on December 1. You can track the new bills here. Next week, Governor Ferguson will release his proposed supplemental operating, capital, and transportation budgets, making mid -biennial adjustments to the state's 2025-27 budgets. The Office of Financial Management is currently evaluating budget requests and adjustments put forward by state agencies. Below are some key forthcoming dates: Weelc of December 15th: Governor Ferguson's first regular budget release January 12, 2026: Start of the 60-day Legislative session January 28-29, 2026: City Council trip to Olympia March 12, 2025: Scheduled end of the legislative session November Revenue Forecast After multiple revenue forecasts noting that the state is facing a budget shortfall, the November Revenue Forecast brought some good news -the shortfall did not get worse. The Economic and Revenue Forecast Council unanimously adopted the latest revenue forecast on November 18. Click here to watch the presentation to the Council on TVW. This latest update estimates collections for the 2025-27 biennium to be $74.5 billion, an increase of $105 million from the September forecast or an approximately $300 million reduction in revenue collections. Revenue collections are only one part of the budget shortfall; the other component is the cost of providing services. After the forecast was released, Governor Ferguson issued a comment. stating, "Our state continues to face significant budget challenges, and this latest forecast does not change that. That said, this forecast was not as bad as we feared, it might be. This forecast does not change the scale of the problem that my team and I have been working on as we develop my first budget." Republicans responded to the revenue forecast, highlighting that the economic outlook noted a significant slowing in job growth. Republicans assert that the lack of job growth could be an early indicator of a recession, and that recently enacted taxes are the cause of the slow down. Click here to read the statement from House Republican budget writer, Rep. Travis Couture, or listen to this podcast from the Senate Republican caucus. The Transportation Economic and Revenue Forecast Council adopted the latest forecast on November 14. Click here to watch the presentation to the Council on TVW. The revenue forecast projects a $67 million decrease in the current biennium due to lower gas consumption and lower vehicle and truck registrations. The forecast is decreased by$87 million for the 2025-29 period compared to September. State Budget Status The Governor and the Legislature are beginning to discuss how to balance the state's budget. The latest estimate from the Washington Research Council shows that the state faces a projected $4.3 billion operating budget shortfall over the four-year outlook period, driven by both declining revenues and spending that has outpaced revenue growth. For the 2025-27 biennium alone, the shortfall is estimated at $1.5 billion, as enacted appropriations for 2023-25 exceeded forecasted revenues and maintenance -level costs continue to rise. This imbalance underscores the challenge of sustaining current services without new revenue or significant spending adjustments. Governor Ferguson has indicated that he will veto sales or property tax increases and that he intends to focus on spending cuts rather than increasing revenue. The Governor believes that no new tax bills can bring in money fast enough to be a solution to the immediate budget deficit. Notably, the Legislature increased taxes significantly in 2025 and traditionally does not increase taxes during short sessions because all members of the House of Representatives and half the members of the Senate will face re-election in 2026. Below is a linkto media coverage of statements about taxes and the budget: • The Washington Observer: Ferguson (sort of) picks a fight on the budget • The Washington Standard: WA Gov. Bob Ferguson says his budget will rely on cuts, not taxes, to balance Revenue Discussions Despite the Governor's statements, select legislators are still considering new revenue. Senator Noel Frame (D-Seatt(e) has expressed continued interest in championing tax reform to achieve a more progressive tax structure. Additionally, Rep. Shaun Scott (D- Seattle) held a press conference announcing his intention to introduce three bills: • House Bill 2089 would close tax loopholes for banks to fund the wildfire mitigation account. • House Bill 2100 establishes a $125k payroll tax for large employers to fund services, such as Medicaid, that have been cut by the federal government. • House Bill 2097 authorizes counties to impose a business and occupation tax that would be in addition to the state business and occupation tax. The county -imposed tax is modeled after the local business and occupation tax that cities currently have the authority to impose. Additionally, we anticipate that legislators will be revising taxes that were enacted during the 2025 legislative session. The House Finance Committee held a work session on Senate Bill 5814, modifying the application and administration of certain excise taxes. Democratic Legislators have said they plan to make alterations to address concerns raised by school districts, and Rep. April Berg (D-Mill Creek) has mentioned that the law needs clarity on who is required to collect and pay the taxes. Separately, Rep. Jeremie Dufault (R-Yakima) pre -filed House Bill 2101, exempting live presentations delivered in person to in -person participants from retail sales and use tax. Sen. Leonard Christian (R-Spokane Valley), pre -filed Senate Bill 5819, ensuring paid protestors are considered temporary staffing and are subject to retail sates and use taxes. These are the first of what are likely to be dozens of bills proposing changes to last session's tax policy. Emerging Issues General Government Artificial Intelligence Bargaining: The Legislature is expected to revisit whether public sector unions should have the right to bargain over their employers' adoption of artificial intelligence (Al) technology. At the center of this discussion is House Bill 1622, which would require government employers to negotiate with unions before implementing Al tools that impact wages or employee performance evaluations. The bill passed the House during the last session but stalled in the Senate, largely due to opposition from business groups and city officials who argue that such a mandate could tip the balance of power too far toward workers and slow workplace innovation. The bill's sponsor, Rep. Lisa Parshley (D-Olympia), recently presented the proposal to the state's Al tasl<force, emphasizing that existing laws, such as a 2002 statute prohibiting bargaining over technology for certain state employees, are outdated given the transformative nature of AL Meanwhile, a September directive from the Office of Financial Management already requires agencies to give union -represented employees six months' notice before deploying generative Al that affects wages, hours, or working conditions, and mandates human review for employment- related decisions. Al governance will likely remain a contentious issue heading into the next session. Regulation of E-Motorcycles: The Association of Washington Cities is working with Washington Bikes on legislation to define electric -assisted bicycles as distinct from electric motorcycles. The draft legislation creates a workgroup to study and recommend a regulatory framework for electric motorcycles by December 2026. Some cities are developing an alternative proposal that would skip the workgroup and jump straight to defining electric motorcycles and establishing registration and enforcement standards. The latter draft is still in development. Housing/Land Use Housing Strategies: Both the House and Senate Housing Committees held work sessions on strategies to address Washington's housing shortage. Some of the strategies discussed include land banking and shared homeownership. Alternatives to traditional ownership included Community Land Trusts, which preserve affordability through nonprofit land ownership and resale restrictions, and Limited Equity Housing Cooperatives, where homeowners purchase shares while the co-op retains land ownership. The House Committee also discussed cooperative housing models, revolving loan funds, and it was noted that Representative Hilt is working on Land Banking legislation. The Senate Housing Committee focused on mixed -use development and transit -oriented development (TOD). Recommendations included funding neighborhood infrastructure grants, affordable housing subsidies, and land banking near transit stations; adopting flexible zoning and Multifamily Tax Exemption (MFTE) policies tailored to local conditions; and implementing minimum density requirements rather than averages. The Legislature was urged to trackTOD performance indicators and consider state -led land acquisition to spur development. Additional discussion centered on converting underutilized commercial properties into residential housing, which could create nearly 675,000 units in Snohomish, King, and Pierce counties alone. Policy proposals included statewide by -right residential construction on commercial land, limiting ground -floor retail, and accelerating implementation timelines. Some challenges cited were infrastructure costs, complex building codes, and lack of interagency coordination. Mobile Dwelling Units: In the 2025 session, Rep. Mia Gregerson (D-33rd LD) and Sen. Sharon Shewmake (D-42nd LD) introduced House Bill 1443 and Senate Bill 5332, respectively. The bill allows placement of up to two mobile dwellings, such as recreational vehicles, travel trailers, or tiny houses on wheels, on residential lots under specific conditions. The bill is in response to research by Sightline Institute that presents mobile dwelling units as a fast, affordable, in demand housing solution. In their recent presentation to the House Housing Committee, Sightline noted that mobile dwelling units can be purchased for less than $100k, have fewer permitting and inspection fees, and are more friendly to trees since they don't require a foundation. Despite these features, most cities zoning codes do not allow mobile dwelling units to be permanent residences, hence the interest in HB 1443 and SB 5332. Local Government Permitting: At their most recent work session, the House Local Government Committee continued discussions on how to improve permit review timelines as a means of lowering housing costs. It was reported that average permitting delays range between six to nine and a half months and add an estimated $30,000-$46,000 to home prices. Recommendations for improvement include objective standards, capped review cycles, a pause on frequent code updates, and more consistent housing cost screening for new policies. In a separate committee meeting the Department of Commerce noted that there have been 62 new housing bills since 2019, along with 29 new planning requirements. Climate/Environment Energy Availability: A recent report commissioned by Energy and Environmental Economics (E3) shows that the northwest region of the nation faces a major reliability gap in the electrical grid beginning as soon as next year. The report projects demand for electricity growing in the region by 3 percent annually and estimates that meeting that demand would require four to five times more generation capacity every year than has ever been achieved in the history of the pacific northwest. Republicans have cited the push toward an all -electric future while simultaneously urging utilities to leave natural gas behind as exacerbating factors feeding into this demand imbalance. Click here to listen to Sen. Matt Boehnke (R-81h LD) speak on the topic. Model Toxics Control Act: The House Environment and Energy Committee reviewed the Model Toxics Control Act (MICA) and its funding challenges. MTCA, created by Initiative 97, is funded primarily through the Hazardous Substance Tax (HST) on petroleum products, with revenue distributed across three accounts: operating (hazardous waste cleanup), capital (toxic site cleanup), and stormwater (pollution control). Current funding is declining, requiring a $22M underspend this biennium, with projections worsening next cycle. Since 2009, $307M has been diverted from MTCA to the general fund. Proposed shifts include reallocating $3.4M to water quality permits and $2.7M to waste reduction programs. Stakeholders raised concerns about MTCA's slowing cleanup pace, risk -based implementation challenges, and equity issues, as toxic sites disproportionately affect low- income communities. Ports and cities emphasized reliance on MTCA capital for waterfront cleanups and urged the Legislature to preserve funding for intended uses, avoid backfilling operating costs, and honor existing commitments. The Pollution Liability Insurance Agency requested extension beyond its 2030 sunset to continue supporting underground storage tank cleanups. Criminal Justice Public Safety Sales Tax Implementation: The Criminal Justice Training Commission (CJTC), is continuing the process of implementing House Bill 2015, authorizing $100 million in grants and allowing cities to councilmanically increase their sales tax to fund public safety. They have received requests from 15 cities and 2 counties to verify their compliance with the requirements for eligibility; an updated list of applicants is available on the CJTC website. As of this writing, no jurisdiction has been formally approved. The Association of Washington Cities is drafting legislation to ease the implementation of this new authority. FLOCK/Automated License Plate Reader Technology: The 2026 Legislature is anticipated to consider legislation regulating automated license plate reader or "FLOCK cameras." SenatorYasmin Trudeau (D-27th LD) shared a draft proposal with stakeholders, including cities, several weeks ago. Incorporating initial feedback, the revised version of the bill allows law enforcement to continue to use automated license plate reader technology to investigate a vehicle that is stolen, associated with a missing or endangered person, registered to a person for whom there is an outstanding felony warrant, or related to a felony. AWC has already flagged the importance of retaining the use of this technology for misdemeanors and gross misdemeanors. Senator Trudeau is continuing to accept feedback, and refinements continue to be made. The bill is increasingly important amid several court cases that have been released in the last several weeks. Public Defense Funding: The Senate Law & Justice Committee held a work session on defense caseload standards and received agency updates. The Washington Defender Association (WDA), Association of Washington Cities (AWC) and the Association of Counties (WSAC) focused on the strain on local governments as they attempt to implement new public defense caseload standards. A WDA survey revealed uneven county progress, with timelines split between the Washington State Bar Association's (WSBA) accelerated three-year plan and the Supreme Court's ten-year phase -in, while funding shortages, attorney attrition, and inconsistent case -tracking systems remain major barriers. The new standards, phased in over ten years beginning January 2026, require steep reductions in attorney caseloads, meaning cities will need to more than double their public defense staffing and budgets. WSAC emphasized that counties have exhausted local revenue options and warned that, without significant state intervention, defendants may be released without trial due to a lack of available attorneys. The presenters called for increased state funding, recruitment, and training programs to expand the pool of defenders, and legislative modifications to ensure local needs can be met and ease systemic overload. The proposed 2026 legislative solutions include: - Replace the grant program with an appropriation with public defense requirements. - Increase appropriations for city public defense by at least $8 million annually, distributed based on misdemeanor cases involving public defenders. Clarify that the Supreme Court's 10-year phase -in has authority over the transition by revising RCW 10.101.030. Committee Worlc Sessions As mentioned above, House and Senate committees held work sessions last week to prepare for the legislative session and consider emerging policies. Below are summaries of relevant work sessions and briefings that were not addressed in prior sections of the report. Joint Transportation Committee: On November 20, the Joint Transportation Committee convened for a work session to hear updates about the transportation impacts of the lower Snake River dams removal -project, the alternative sidewalk funding study -project, regulating emissions from ocean-going vessels, and transportation challenges and successes in Washington counties. Click here to watch the session on TVW. On December 3, the Joint Transportation Committee heard a report on transit -oriented development (TOD), with recommendations on what actions the Legislature could take in addition to House Bill 1491 which was approved in 2025. On funding and financing, the report recommends focus on funding neighborhood infrastructure especially in light of the 50% reduction in impact fees included in HB 1491, Multifamily Tax Exemption (MFTE) policies such as the affordability requirements should be right -sized to local market conditions, and affordable housing subsidies and land banking are needed for TOD areas. On zoning, the state should switch to minimum densities rather than average densities. The report highlighted how permits/construction of housing is low (same level as last recession) and that there are significant discrepancies between different localities. The materials also include a city -by -city breakdown of how much cities will lose through the 50% reduction in impact fees included in 1491, among the most impacted is the City of Issaquah. House Community Safety Committee: The Community Safety Committee reviewed reports from the Washington Association of Sheriffs & Police Chiefs (WASPC), the Council on State Governments, and the Council on Criminal Justice, on recent crime trends in Washington State and nationwide. Crime rates peaked in 1980, with 1991 rates nearly matching that high, but by 2024, rates had dropped by 64% from those peaks. Racial disparities in imprisonment have decreased by 40%, though a gap persists, largely due to differences in violent offending rates,'time served, and sentencing practices. Washington's population increased in 2024, and the number of commissioned law enforcement officers also rose, improving the per capita rate to 1.38 officers per thousand, still below the national average of 2.32. Overall crime fell by 8.4%, with notable decreases in violent crime (down 6.4%) and property crime (down 13.3%), including a 37% drop in vehicle theft and a 10% reduction in hate crimes. However, crimes against society rose by 32%. Below is a link to media coverage on violent crime trends in the state: 9 Washington State Standard: Police are failing to solve most violent crimes in WA House Finance Committee: The House Finance Committee received an update on the implementation of Senate Bill 5814, which expands sales tax to digital services, including digital advertising, and went into effect on October 1. In the process of implementation, the Department of Revenue conducted 16 listening sessions, launched an online survey, and provided guidance through webpages, email updates, and direct outreach to 95,000 taxpayers. Taxpayer ruling requests surged following enactment, averaging 340 per month but spiking to 1,078 requests in September —a record high. Educational efforts include webinars, speaking engagements, and resource pages, with formal rulemaking scheduled to take place after the 2026 legislative session. Committee members raised concerns about fiscal impacts on nonprofits and school districts, definitional clarity, and compliance for businesses with complex operations. It was highlighted by panelists that this updated excise tax introduced significant technical and operational changes, as well as compliance concerns, emphasizing the need for continued outreach and clear guidance as taxpayers adapt to the new tax framework. Senate Local Government Committee: The Senate Local Government Committee held a work session on form based codes, childcare facility siting and street standards and frontage improvements. Form based code is a land development regulation that focuses on physical form as opposed to type of use, but still considers use, performance, and density. Department of Commerce and the City of Lacey shared some of benefits and challenges of using form -based codes, noting that it does not necessarily expedite development. Committee members acknowledged that a statewide form -based code would not be prudent. The Committee also heard from the Department of Children, Youth and Families (DCYF) who shared that the number of licensed providers is increasing, despite the challenges to siting with local governments. Key challenges are inconsistent requirements by jurisdiction, parking rules and zoning limitations, and frustration with obtaining certificates of occupancy. Prospective providers noted that impact fee waivers, expedited permitting process, zoning reforms and funding innovations are helpful things that local governments have done to support siting. The City of Poulsbo shared best practices on street standards and frontage improvements and noted the good intent but significant costs it can add to housing development. Senate Ways & Means Committee: The Senate Ways & Means Committee received an update from the Economic and Revenue Forecast Council showing moderate U.S. growth with elevated near -term inflation, weaker Washington employment and housing permits, and ongoing risks from tariffs and consumer pessimism. Revenues are slightly higher than the current biennium but projected to decline next biennium, while inflation is expected to remain elevated despite a likely rate cut. The Committee also reviewed wildfire response costs which require a base funding of $93M for FY26 plus $24.5M annually with fires now occurring year-round and requiring expanded resources. A major concern is the projected $4.3 billion operating budget deficit by FY29, alongside rising tort claim costs, which are expected to nearly double to $500M in FY25, creating a $600M shortfall in the self- insurance liability account. Water resource challenges were discussed, including Long- term funding needs for the Odessa Groundwater Replacement Program and Yakima Basin Integrated Plan, as well as climate -driven drought impacts. Senate Human Services Committee: The Senate Human Services Committee examined the potential impacts of H.R. 1, known as the "One Big Beautiful Bill Act," on Medicaid and related programs. Washington serves nearly 53,000 developmentally disabled individuals who must meet functional and financial eligibility requirements, but H.R. 1 introduces uncertainty with pending guidance on cost -sharing, home equity limits, and new work requirements for Affordable Care Act (ACA) expansion coverage —potentially affecting about 4,400 clients by late 2026, though most may qualify for exemptions. Immigration - related eligibility changes could disqualify approximately 3,000 HCLA clients, and FIR 1 creates a new 1915(c) waiver option in 2028 to expand access to home and community - based services. Stakeholders raised concerns about severe underfunding for supported Living, reimbursement cuts for behavioral health services, and workforce shortages. Supplemental Nutrition Assistance Program (SNAP) changes under H.R. 1 pose additional risks: an estimated 120,000 people could lose benefits for failing to meet work requirements, and 30,000 legal immigrants may be excluded. The Committee emphasized the need for strategies to protect vulnerable populations and maintain access to essential services. House Local Government Committee: The House Local Government Committee held work sessions on integrating special purpose districts into the Growth Management Act (GMA), subdivision reform, comprehensive plan update check -in, and a permitting practices overview. To better integrate special purpose districts into the GMA, the Department of Commerce advised to improve coordination, but also noted `update fatigue' and warned against new sweeping mandates. The Committee also heard a presentation about subdivision legislation that would make all subdivisions decided administratively, allowing for streamlining of the subdivision statutes. Futurewise reported that they are unsure how much benefit this will truly provide, but noted that with the right mix of retaining vesting requirements and other necessary provisions, it could potentially have the intended effect. House Technology, Economic Development, & Veterans (TEDV) Committee: The TEDV Committee reviewed the Department of Commerce's legislative requests to build tariff resilience, safeguard competitiveness and support small business growth. Key initiatives include strategies such as alternative market development and supply chain optimization. It was emphasized that to improve Washington's attractiveness to investors, streamlined permitting, infrastructure investment, incentives and expanded trade missions are areas of import. The Committee also received an update on the state's emergency management. Due to restructuring at the federal level, disaster response responsibilities are shifting more onto states and local governments. Washington's Military Department Emergency Management Division noted that there are increased match requirements for disaster and mitigation grant funding, grant cancellations, and reduced federal oversight in this area highlighting the need for a state -level disaster assistance framework.