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Home My WebLink About2025, 05-27 Formal A MeetingMINUTES City of Spokane Valley City Council Regular Meeting Formal Format A Tuesday, May 27, 2025 Mayor Haley called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in Council Chambers, and also remotely via Zoom meeting. Attendance: Councilmembers Staff Pam Haley, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Laura Padden, Councilmember Kelly Konkright, City Attorney Rod Higgins, Councilmember Tony Beattie, Sr. Deputy City Attorney Ben Wick, Councilmember John Bottelli, Parks & Rec Director Al Merkel, Councilmember Robert Blegen, Public Works Director Gloria Mantz, City Services Administrator Chelsie Walls, Finance Director Dave Ellis, Police Chief Absent: John Whitehead, Human Resources Director Jessica Yaeger, Councilmember - late arrival Virginia Clough, Legislative Policy Coordinator Sarah Farr, Accounting & Finance Program Mngr. Eric Robison, Housing & Homeless Coordinator Rob Lochmiller, CIP Engineering Manager Chad Knodel, IT Manager Marci Patterson, City Clerk INVOCATION: Pastor Greg Wilt provided 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 except Councilmember Yaeger. It was moved by Councilmember Higgins, seconded and unanimously agreed to excuse Councilmember Yaeger. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS n/a PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited public comments. Ginny Gadd, Spokane Valley; John Harding, Spokane Valley provided 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 A,-enda. a. Approval of Claim Vouchers, May 27, 2025, Request for Council Action Form: $597,907.35. b. Approval of Payroll for Pay Period ending May 15, 2025: $678,174.63. c. Approval of Council Meeting Minutes of April 15, 2025 Council Meeting Minutes: 05-27-2025 Pagel of 4 Approved by Council: 01-13-2026 It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the Consent Agenda. ACTION ITEMS: 2. Ordinance 25-006: Second Read 2025 Budget Amendment — Chelsie Walls Clerk Patterson read the ordinance title, and it was moved by Deputy Mayor Hattenburg and seconded to approve Ordinance #25-006 amending the 2025 Budget. Ms. Walls provided a brief update on the amendment and noted that there had not been any additional changes. Vote by acclamation: in favor .- Mayor Haley, Deputy Mayor Hattenburg, Councilmembers Padden, Wick and Higgins. Opposed.- Councibnernber Merkel. Motion carried. 3. Ordinance 25-010: First Read Commute Trip Reduction Plan Update — Adam Jackson Clerk Patterson read the Ordinance title, and it was moved by Deputy Mayor Hattenburg and seconded to move Ordinance #25-010, amending chapter 10.20 SVMC to update the Commute Trip Reduction Plan for years 2025 to 2029, to a second reading. It was moved Councilmember Higgins and seconded to amend the motion to waive the rules and adopt ordinance 25-010. Mr. Jackson detailed the plan and noted that this is what the state has said needs to happen and what needs to be adopted. Councilmember Merkel questioned the emergency necessity to adopt the plan. Councilmember Higgins noted that there was no emergency, but that it would expedite the process and save an additional agenda item as there were not opportunities to make changes to the plan. Vote by acclamation on the amended motion: in favor: Mayor Haley, Deputy Mayor Hattenburg, Coumcilmembers Padden, Wick and Higgins. Opposed: Councihnember Merkel. Motion carried. Vote by acclamation on the original motion: in favor: Unanimous. Opposed.- None. Motion carried. 4. Motion Consideration: Bid Award Wellesley Ave Preservation Project #353 contract —Rob Lochmiller It was moved by Deputy Mayor Hattenburg and seconded to award the Wellesley Avenue Preservation Project to Big Sky ID Corporation in the amount of $1, 077, 313.60 and authorize the City Manager to finalize and execute the construction contract. Mr. Lochmiller provided details on the seven bids received and the project. He noted that the project included stormwater improvements, new pedestrian crossings with refuge islands, upgraded ramps to meet ADA compliance, and new lane markings (channelization). Mr. Hohman noted that this is a good time for contracting as this project is roughly $500K under the engineering estimate. Councilmember Yaeger arrived at 6.•27prn. Mayor Haley invited public comments. John Harding, Spokane Valley provided comments. Council discussed their appreciation for the bids coming in below the engineers' estimate. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councihnembers Padden, Wick and Higgins. Opposed: Councilmember Merkel. Motion carried. NON ACTION ITEMS: 5. Admin Report: 6-year Transportation Improvement Program(TIP) — Adam Jackson Mr. Jackson provided details on the 6-year Transportation Improvement Program (TIP) with a PowerPoint presentation that included a review of the program, the 2026 closeout projects, bridge and grade separation projects, intersection improvement projects, reconstruction/preservation projects, annual arterial preservation projects, and the safety, sidewalk, trail and stormwater projects. Council discussed a variety of topics within the TIP and Mr. Jackson noted that the public hearing for the TIP would be in June. 6. Admin Report: Affordable and Supportive Housing (1406) Funds Discussion — Eric Robison, Sarah Farr Ms. Farr and Mr. Robison presented a PowerPoint presentation that included a background on the affordable housing property acquisition, the history on the collection of the 1406 funds, the affordable and supportive housing sales tax eligible uses, potential projects that could include acquiring vacant land for development, acquisition, rehabilitation and/or conversion to affordable housing or rental assistance to tenants with retaining housing or obtaining housing. Council discussed the FLASH program and the funding sustainability for the program. Councilmember Wick noted the need for more diverse housing options. Councilmember Yaeger asked if there could be a project that could support a childcare facility close to the housing options. Councilmember Padden spoke about rental assistance, requirements that could be set in Council Meeting Minutes: 05-27-2025 Page 2 of 4 Approved by Council: 01-13-2026 place to provide the assistance, supporting home ownership that can become a generational success. Staff thanked council for the feedback and noted that they would return at a later date with options to discuss. INFORMATION ONLY (will not be reported or discussed) 7. Department Monthly Reports 8. Fire Dept Monthly Report GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public. Daryl Williams, Spokane Valley provided comment. ADVANCE AGENDA Councilmember Merkel requested that Kitara Johnson -Jones of Gabriels Challenge be asked to come speak at a council meeting. City Manager Hohman stated that staff have already spoken to Ms. Johnson -Jones and she planning to come to a council meeting and that it is on the Advance Agenda. Councilmember Padden requested a Memorial Day program at Balfour Park since we have the Veterans Memorial at the park. COUNCILMEMBER REPORTS Councilmember Merkel noted that it was Memorial Day weekend, he attended a fentanyl round table event with a presentation by Ms. Johnson- Jones. Councilmember Wick thanked those for their service as it was Memorial Day weekend, attended a retirement celebration for Deputy Wing Commander and congratulated the upcoming grads, noted that Gabriel's Challenge may be over on June 20th, and attended a Memorial Day Celebration in Liberty Lake. Councilmember Higgins: stated that he had nothing to report. Councilmember Padden: went to a Memorial Day event in Liberty Lake Park, attended the Public Safety Awards ceremony and they awarded Detective Keys for his work, attended a citizen's alliance for property rights luncheon, spoke at the Webelos for Boy Scouts merit badge, and attended a ribbon cutting for Scale House Farmers Market Councilmember Yaeger: attended the Spokane Valley farmers market ribbon cutting, the legislative wrap up, and will be at the scale house market this weekend. Deputy Mayor Hattenburg: stated that attended the STA meeting and stated that ridership is up at the moment and that the safety ambassador program is being worked on, noted a low income fare rider program (hopefully out this fall), bus driver competition this weekend for STA, attended a ribbon cutting at the farmers market, attended the Public Safety Awards ceremony, a Habitat for Humanity fundraising event, and the Lilac Parade. MAYOR'S REPORT The Mayor attended an event on Friday June 13th for Helping Captives Ministries and that Ms. Johnson - Jones will be there to speak as well. She also attended Public Safety Awards ceremony, attended the Scale House Market ribbon cutting and the farmers market ribbon cutting. CITY MANAGER COMMENTS City Manager Hohman asked Deputy City Manager Lamb to speak about a letter that the city received regarding the wastewater reclamation facility. Mr. Lamb gave a brief background on the facility and noted that roughly 47,000 citizens use the facility and of those roughly 30,000 are from our city. He further explained that the City of Spokane was looking for utility tax payment and back payment for the use of the facility and that this has been an ongoing discussion for about the last five years. Mr. Lamb noted that council had a copy of the letter to read and noted that as stated in the letter, there would be further discussion on the utility tax payment request. Council noted that this was a money grab, where the request stands from a legal perspective, when would further conversations take place and perhaps a request to have a joint meeting in the near future regarding said topic. Mr. Hohman moved on with two other updates on the Argonne Millwood road project and that it is set to start on June 9t" and noted that the budget workshop would be in two weeks on June 1 Ot" and that there would not be an evening meeting that night. Council Meeting Minutes: 05-27-2025 Page 3 of 4 Approved by Council: 01-13-2026 EXECUTIVE SESSION It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn into executive session for 30 minutes to discuss potential and pending litigation, and that no action will be taken upon return to open session. Vote by acclamation: infavor: Unanimous. Opposed: None. Motion carried. Council adjourned into executive session at 7:57p.m. Senior Deputy City Attorney Beattie requested an extension of 15 minutes for the executive session. Senior Deputy City Attorney Beattie requested an extension of an additional 15 minutes for the executive session. Senior Deputy City Attorney Beattie requested an extension of 15 minutes for the executive session. Senior Deputy City Attorney Beattie requested an extension of 15 minutes for the executive session. Senior Deputy City Attorney Beattie requested an extension of ten minutes for the executive session. Senior Deputy City Attorney Beattie requested an extension of 15 minutes for the executive session. Deputy Mayor Hattenburg declared Council out of executive session and made a motion to adjourn the meeting at 9:32p.m. Vote by acclamation: in favor: Unanimous. Opposed.• None. Motion carried. ATTEST: U01h, VakAI)JA Marei atterson, City(NilkYY Pam Haley, Mayor Council Meeting Minutes: 05-27-2025 Approved by Council: 01-13-2026 Page 4 of 4 PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, May 27, 2025 6:00 p.m. GENERAL PUBLIC COMMENT OPPORTUNITY #1 Please sign up to speak for up to THREE minutes and the Mayor will afford the public the opportunity to speak. The public comment opportunity is limited to a maximum of 45 minutes. You may only speak at one of the comment opportunities, not at both public comment opportunities. NAME TOPIC YOU WILL SPEAK PLEASE PRINT ABOUT YOUR CITY OF RESIDENCE Please note that once information is entered on this form, it becomes a public record subject to public disclosure. OFFICE OF FINANCE & SPOKP ADMINISTRATION 808 W. SPOKANE FALLS I/ 1 BLVD. SPOKANE, WASHINGTON 99201-3344 IY 509.625.6820 MATT BOSTON CHIEF FINANCIAL OFFICER May 13, 2025 Spokane County Re: Delinquent Utility Tax Return & Unpaid Taxes Dear Spokane County: Thank you for your letter dated March 18, 2025. We likewise appreciate the longstanding history of cooperation and collaboration regarding City and County wastewater operations. However, we respectfully disagree with your position regarding a tax on the operations of the Spokane County Regional Water Reclamation Facility (SCRWRF). It is a matter of settled law that the City can tax "the gross revenue generated from [SCRWRF's] proprietary business activities transacted within the City's limits." Lakehaven Water & Sewer Dist. v. City of Fed. Way,195 Wn.2d 742, 768 (2020). Your proposed limitation of the tax to only those ratepayers who are City residents is not supported by the law. Indeed, in Lakehaven itself, the Washington Supreme Court approved a tax on business operations conducted within city limits that impacted "ratepayers within and without the City's limits." Id. at 750. As you know, the Spokane Municipal Code (SMC) 08.10.010 levies a utility tax of 20% up through 2023 and 21% from 2024 forward upon operating public wastewater collection and treatment systems. The City has evaluated available financial records filed by Spokane County and has calculated the outstanding unpaid and delinquent taxes from June 30, 2020 — March 12, 2025. Per the attached spreadsheet, the current amount due and owing as of March 12, 2025, is $ 34,140,620. Interest and penalties are calculated per SMC 8.10.110 and total $23,282,982.84. (Interest due is $15,471,253.89 and penalties due is $7,811,728.95. Prior to a formal assessment, the City would welcome the opportunity to further discuss a resolution of the past -due amounts, as well as a path forward for compliance on an ongoing basis. Please contact me at your earliest convenience. Sincerely, Matt Boston ( City of Spokane I Chief Financial Officer 509.625.6820 1 mboston@spokanecity.orRI spokanecity.ors Spffilgike ..;0OValleye October 30, 2020 City Council City of Spokane 808 West Spokane Falls Blvd. Spokane, WA 99201 10210 East Sprague Avenue ♦ Spokane Valley WA 99206 509.720.5000 ♦ Fax: 509.720.5075 ♦ cityhatt@spokanevalley.org Re: Draft 2021 Budget priority #25 — imposition of 20% sewer utility tax on non-residents Dear City Council: I am writing to you on behalf of the Spokane Valley City Council. The Spokane Valley City Council was recently made aware that the City of Spokane City Council is considering adoption of a resolution of budget priorities which includes assessing a 20% utility tax on wastewater collection and treatment at the Spokane County wastewater facility located at 1004 North Freya in the City of Spokane. This would be passed on to all sewer rate payers in the City of Spokane Valley. The City of Spokane Valley objects to this proposal in the very strongest terms. As other jurisdictions are doing, we are exploring our legal options with regard to this proposal. Aside from the legal aspects of this, what is particularly galling about this is that Spokane Valley has been discussing for some time how to generate additional revenue to fund existing deficiencies in our street maintenance operation, which will require us to come up with millions of additional dollars each year. One of the most difficult decisions a city council wrestles with is whether to impose new taxes in order to fund operations. In 2016, our City Council introduced the potential to impose utility taxes on one or two services up to 6% to address our very serious street maintenance deficiency. The reaction against this was swift and very negative and, as a result, the City did not implement the utility tax and we have not been able to find an adequate funding source since that time. Just recently, our Council has again talked about finding a long-term funding source for our own deficiencies. Any decision by Spokane to move forward with a utility tax on our citizens, who would receive zero actual benefit in the use of tag revenues used in Spokane but raised in our City from our citizens and businesses, would significantly impair our ability to fix our own problems. It is frankly offensive that Spokane would even contemplate fixing its problems with money fi•om our citizens and businesses without our citizens having any representational input on the expenditure of those funds. With our unmet street maintenance delta expanding each year, this action would cause our City irreparable harm. We cannot overemphasize the lasting damage this action would have on the working relationship developed by our respective Councils and staff over the past 17 years, a relationship we have valued, and which we believe has been mutually beneficial. As such the Spokane Valley City Council respectfully requests that the City of Spokane City Council remove from its consideration imposition of utility tax on wastewater collection and treatment applicable to the facility on Freya Street and owned by Spokane County. Please let us know at your earliest opportunity your intended course of action with regard to this issue. We look forward to hearing from you very soon, and thank you for your consideration. Very truly yours, 60) Ben Wick, Mayor c: Nadine Woodward, Spokane Mayor Board of County Commissioners, Spokane County Kevin Freeman, Millwood Mayor Shane Brickner, Liberty Lake Mayor Gerry Gemmill, Spokane County Chief Executive Officer