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HomeMy WebLinkAbout2026, 02-03 Formal A MeetingMINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, February 3, 2026 Mayor Padden 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 Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Pam Haley, Councilmember Robert Blegen, Public Works Director Michael Kelly, Councilmember Kelly Konkright, City Attorney Jessica Yaeger, Councilmember Tony Beattie, Senior Deputy City Attorney Ben Wick, Councilmember Chelsie Walls, Finance Director Al Merkel, Councilmember Dave Ellis, Police Chief Gloria Mantz, City Services Administrator Jill Smith, Communications Manager John Bottelli, Parks & Rec Director Virgina Clough, Legislative Policy Coordinator Mike Basinger, Community & Econ. Dev. Director John Whitehead, HR Director Steve Roberge, Planning Manager Jerremy Clark, Traffic Engineering Manager Rob Lochmiller, CIP Engineering Manager Sarah Farr, Accting & Finance Program Manager Jonny Solberg, IT Specialist Marci Patterson, City Clerk INVOCATION: Pastor Chris Gaschen with Valley Fourth Church 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. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After the Mayor explained the process, she invited public comments. Ben Lund, Spokane Valley provided comments. ACTION ITEMS: 1. Motion Consideration: ILA Broadlinc — John Hohman. Robert Bleaen. Jerremv Clark It was moved by Councilmember Wick, seconded to authorize the City Manager or designee, to enter into the attached ILA with Broadlinc. Mr. Hohman introduced staff and Ms. Ariane Schmidt, Executive Director for Broadlinc PDA. Mr. Hohman provided details on the ILA and allowed Ms. Schmidt to provide any additional comments. Mr. Clark explained the details on the ITS master plan map. Council discussed the ownership of the fiber, the grant process, the future funding, and the focus of rural connectivity. Mayor Council Meeting Minutes: 02-03-2026 Page I of 6 Approved by Council: 03-31-2026 Padden invited public comments; no comments were offered. Vote by acclamation: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Yaeger, Wick, Haley and Kelly. Opposed: Councilmember Merkel. Motion carried. It was further moved by Deputy Mayor Hattenburg, seconded to authorize Mayor Padden to appoint Councilmember Wick to serve on the Broadlinc Board for 2026 and Councilmember Kelly to serve as the alternate. Mayor Padden called for comments from the public; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. Councilmember Yaeger poised a point of privilege and asked why Councilmember Merkel had a listening device. City Manager Hohman stated that it was a request from the Councilmember to advance his hearing with the new seating arrangement. 2. Motion Consideration: South Barker Corridor-Appleway to Sprague Project Bid Award — Rob Lochmiller It was moved by Deputy Mayor Hattenburg, seconded to award the South Barker Corridor, Appleway Avenue to Sprague Avenue to Selland Construction, Inc. in the amount of $1, 319, 735.00 and authorize the City Manager to finalize and execute the construction contract. Mr. Lochmiller provided brief details on the number of bids received and details on the low bidder. Mayor Padden invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed.• None. Motion carried. It was moved by Deputy Mayor Hattenburg, seconded to amend the agenda to include two new action items. Item 3 would be a motion consideration regarding emergency interim ordinance 26-002 prohibiting battery energy storage systems within the city. Item number 4 would be a motion consideration regarding emergency interim ordinance 26-004 reclassifying marijuana retail sales uses as legal nonconforming. Vote by acclamation: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Yaeger, Wick, Haley and Kelly. Opposed: Councilmember Merkel. Motion carried. 2A. Motion Consideration: Adopt Emergency Ordinance 26-002 BESS — Kelly Konkright It was moved by Deputy Mayor Hattenburg, seconded to move to waive the rules and adopt Interim Ordinance 26-002 Prohibiting Battery Energy Storage Systems within the City of Spokane Valley. Mr. Konkright provided details on the need for the emergency interim ordinance for the battery energy storage systems (BESS) and explained the need for the city to review and assess the need for the locations around the city and see where the potential locations would best be suited if approved. He also gave details on the dangers of the lithium -ion batteries and what it would look like if there were issues at one of the potential facilities and noted that it would be beneficial to look at options for all the safety protocols and allow the planning commission to study the BESS facility regulations. Council discussed the need for the emergency and if an application were submitted, it may pose as a danger within the city. Mayor Padden invited public comments; no comments were offered. Councilmember Merkel moved to amend the motion to reduce the interim ordinance time to six months. City Attorney Konkright noted that before moving forward with that, he noted that he is not confident that six months would allow for enough time to go through the process appropriately. Council did not second the motion to amend, therefore the amended motion died. Vote by acclamation on original motion: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Yaeger, Wick, Haley and Kelly. Opposed: Councilmember Merkel. Motion carried. 2B. Motion Consideration: Adopt Emergency Ordinance 26-004 Reclassifying Marijuana Retail Sales as Nonconforming — Tony Beattie It was moved by Deputy Mayor Hattenburg, seconded to move to waive the rules and adopt Emergency Interim Ordinance 26-004 establishing existing marUuana retail sales uses as legal nonconforming and other matters related thereto. Mr. Beattie provided details on the history of the marijuana retail sales within the city and how we got to have the three retail locations that we currently have. Council discussed the need for reclassification, details on the uses currently allowed in our community and the steps moving forward on the reclassification. Mayor Padden invited public comments. Ben Lund, Spokane Valley provided comments. Vote by acclamation on original motion: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers, Wick, Haley, Merkel and Kelly. Opposed: Councilmember Yaeger. Motion carried. NON -ACTION ITEMS: Council Meeting Minutes: 02-03-2026 Page 2 of 6 Approved by Council: 03-31-2026 3. Admin Report: STA Connect 2035 Strategic Plan Presentation — Steve Roberge & Guest Mr. Hamud presented a PowerPoint presentation that included details on the STA moving forward recap, connect 2035 Initiatives, and impact of investments. He further explained the moving forward 10 year plan, the investments to expand, improve and maintain, the increased service hours, and better services to connect everyone to opportunity. He also provided details on the Connect 2035 project and reviewed the goals, the high-performance transit, the mobility on demand program, and the customer experience. He highlighted the impact of investments that included more routes closer to some of the new housing locations, more jobs within STA and stops closer to more large businesses, and how the renewal of funding would be sourced. Council discussed a variety of topics on the plan including funding, ridership numbers, and the new ride share program. 4. Admin Report: HCDAC Grant Application — Gloria Mantz & Sarah Farr Ms. Farr and Ms. Mantz presented a PowerPoint presentation that included potential grant opportunities through the Spokane County Housing and Community Development. The grant opportunity included a $ 1 M grant available with $653K available for homeless outreach services with a funding cycle from July 1, 2026 to June 30, 2027 with no match required. Ms. Farr detailed highlights with the homeless outreach program that included Homeless Outreach Team; Model combines SVPD officers and contracted social workers (Frontier Behavioral Health) who co -deploy in the field, conduct pro -active outreach activities, respond to concerns directed to the City regarding issues related to homelessness, interact daily with the Housing & Homeless Coordinator who coordinates the City's response and follow-up, Frontier Behavioral Contract funded with local recording fees and a Spokane County grant (partial award). Ms. Mantz provided details on the additional grant opportunity for the Grace Sewer Project - Utility Assistance. The city would apply for a CDBG grant to help those that live within that project to help offset the cost to hook up to the new sewer line that is being installed. The requirements and information for the Grace Sewer Project include the project start time in Spring/Summer 2026, located adjacent to the Spokane River, provides sewer connections and aims to eliminate septic tanks, neighborhood meets CDBG standard for low to moderate income levels as they are below 80% LMI and at least 10 households qualify for senior property tax exemption, cover the property Owner Costs, Spokane County Sewer Connection Fees of potentially $8,000 - $10,000 for Side Sewer Installation Costs per property of estimated $15,000 and some require a low-pressure sewer grinder pump. Council provided consensus to return with a motion consideration for the grant application. Mayor Padden called for a ten minute recess at 7: 50pm. 5. Admin Report: Potential Grant Opportunily - City Safety Program — Adam Jackson Mr. Jackson presented a PowerPoint presentation that included details on a grant opportunity for the city safety program that included finding offered every two years, there's $30 Million available statewide for Spot Location projects and Systemic projects, 100% award for all phases if authorized by April 30, 2029, applications due March 6, 2026 with awards by Fall 2026, noting that the max. typical award is $1.5 million and are awarded projects must go to construction, no planning -only awards, the city must secure funds for the balance of any partial funding and applications require a Local Road Safety Plan. Mr. Jackson further detailed the local road safety plan, the crash severity and an evaluation of prominent crash types with a map, the crash types and locations in the city on a map, details on the common factors at angle (T) crashes, and common factors at hit pedestrian crashes. Mr. Jackson explained the potential projects that included roundabout at Barker/Appleway, Appleway Crossings (Farr- University), Sprague Crossings (Pines - Sullivan), and various crossings at Barker, Park and Coleman. Council discussed the process of the grant, various aspects of each potential project and funding. Council provided consensus to return with a motion consideration for the grant opportunity. 6. Admin Report: 2025 Accomplishments Report — John Hohman City Manager Hohman provided a PowerPoint presentation that included the 2025 accomplishments for the year. The accomplishments included five themes throughout the report that included Safe and Accountable Community, Connected and Maintained Network, Strong and Diverse Economy, Exceptional Quality of Life, and Strategic and Responsive Government. The safe and accountable community theme included fully funded and hired 10 new officers in 2025 without any additional taxes by reprioritizing existing resources Council Meeting Minutes: 02-03-2026 Page 3 of 6 Approved by Council: 03-31-2026 and making reductions of $1.3M in non -police departments, passing proposition 1 Public Safety Sales Tax, partnership with the US Marshals Service, adopted an ordinance implementing new requirements for owners and operators of massage and reflexology businesses to assist law enforcement's efforts to detect and eradicate illegitimate businesses engaged in human trafficking, resulting closing 18 illegal businesses, substantially completed the majority of tenant improvements to the police precinct to accommodate all new officers identified in the recent police staffing study, began the implementation of a speed safety camera program to be launched in 2026 to protect pedestrians from excessive speeding near schools and funded and began installing park security cameras to reduce and address crime in city parks. It also included funding and implementing the Automated License Plate Reader pilot program, which gives automated alerts to stolen vehicles, Amber and Silver Alert vehicles and wanted fugitives, adding additional tools for law enforcement to further enhance public safety, Code Enforcement and SVPD collaborated on a holistic enforcement approach of properties with chronic nuisance conditions to eliminate ongoing criminal activity, successfully advocated changes to Washington law governing allocation of real estate document recording fees so the City receives a larger portion for the city's homelessness program, joined Safe and Healthy Task Force and Planning Team, and community driven initiatives to develop actionable strategies to enhance public safety, support behavioral health and strengthen the criminal justice system in Spokane County. Mr. Hohman continued with the connected and maintained network theme which included Completed the railroad bridges for the Pines Road/BNSF Grade Separation Project and started the Trent Avenue (SR290) realignment phase for the project that will separate trains and vehicles with an underpass, improving safety, mobility, connectivity, quality of life and economic development, completed adjustments to the S. Bowdish Road and E. 16th Avenue roundabout within the original project budget to successfully reduce driver speeds and increase safety, completed a pavement preservation project on Wellesley Avenue, adding safety features near three schools, like new bus turn pockets, crosswalks and ADA ramps, as well as stormwater enhancements. He also provided details on the continued traffic analysis and preliminary design on Sullivan Road and Trent Avenue (SR290) Interchange, a project to improve mobility and safety for all users in a highly congested area, completed the Sullivan Park Waterline, including boring under the Union Pacific Railroad to replace an underperforming well and provide water to Sullivan Park and nearby parcels that would enable future development, began traffic analysis and preliminary design for the Argonne Road at I90 Bridge Replacement, and replaced the Thorpe Road Bridge superstructure, an essential connection for schools and emergency services. Mr. Hohman continued his presentation with the strong and diverse economy theme. He noted accomplishments such as completing Phase I construction of a premier cross country running venue, funded 100% with lodging taxes, state grants and appropriations, that will generate millions of dollars of economic impact, and hosted WCC and NWAC cross country championships, assisted Solstice (formerly Honeywell), Mercer and Kaiser Aluminum on major expansions bringing more jobs to the Valley, collaborated with partners to host business -focused webinars and workshops, worked with a retail recruiter to bring Dave & Buster's and Trader Joe's to the Valley, and worked with the community on the state -required periodic review of the Comprehensive Plan to accommodate required growth and retain our community's vision. The PowerPoint also noted that we implemented year three of the city's five-year tourism marketing plan to build out tourism, assets to increase visitor spending in the Valley and managed the implementation of destination marketing campaigns and sports recruitment through the Discover the Valley brand, continued to provide the region's best customer service in the permitting department, supported more affordable housing by receiving a $1.3M CHIP grant to find utility infrastructure for Spokane Housing Authority's 240-unit affordable housing project, and increased homeownership opportunities by awarding 1.5 acres of vacant land to Habitat for Humanity through a grant to construct up to 24 affordable housing units. Mr. Hohman provided details on the exceptional quality of life theme that included: Completed Phase 2 improvements at Greenacres Park, funded 75% with $1.5M in state/federal grants, and hosted a Barnyard Bash to celebrate, negotiated and installed the donation of a Seattle Reign soccer mini -pitch at Greenacres Park, expanding opportunities for all kids to play soccer for free, installed the donation of a new art sculpture in Balfour Park, and advanced future development of the park by securing $415k in state appropriations for sport courts, began a periodic update to the six -year Parks and Recreation Master Plan, and recruiting community input to advise on the future of Valley parks and recreation. We partnered and hosted several fun, new and expanded community events, including: Cops and Kids Car Show with SVPD and Spokane Riverside Cruisers, Summer Solstice Concert °BeethoVAN" with the Spokane Symphony, Outdoor movies with the Kiwanis Club of Spokane Valley, Spokane Valley Farmer's Market, Council Meeting Minutes: 02-03-2026 Page 4 of 6 Approved by Council: 03-31-2026 Paws in the Pool, MiraBOO at Mirabeau Park, Tree Lighting celebration, and Breakfast with Santa and Winter Market. Mr. Hohman explained the Strategic and responsive government theme which included: Washington City/County Management Association (WCMA) honored City Manager John Hohman with its prestigious management Excellence Award, recognizing outstanding civic leadership and innovative management practices in city/county governance, managed a fiscally responsible 2025 city budget and passed a balanced 2026 budget of $148.4M, including $47.9M in capital expenditures funded 71.25% by state/federal grant dollars, received clean Financial and Federal Audits for over 12 years in a row and maintained an Aal bond rating, a testament to the city's financial strength and policies, conducted an in- depth evaluation of permitting fees and adopted updated fees to generate $400k in annual revenue, completed compliance documents and received over $300k in state grants to address Clean Building requirements and made energy retrofits at CenterPlace to save energy and move toward the required performance standard, renewed the WM and Sunshine Disposal solid waste collection contracts, locking in favorable rates and terms for residents and businesses through March 31, 2030, successfully advocated statewide legislation to protect public employees from unlawful retaliation by safeguarding the identity of those who report or witness unlawful discrimination, attained the Association of Washington Cities WellCity Award, providing a 2% discount on employee healthcare premiums (approximately $35k per year savings), and completed a workplace safety review and implemented changes to enhance safety in city facilities for employees and visitors. Mr. Hohman closed by thanking staff and council for such a successful year. Council did not have any additional questions. It was moved by Councilmember Yaeger, seconded and approved to extend the meeting to 9:15 pm. INFORMATION ONLY: (will not be reported or discussed) GENERAL PUBLIC COMMENT OPPORTUNITY: Mayor Padden stated that the general public comment rules still apply and called for public comments. Rick Freier, Spokane Valley provided comments. COUNCIL COMMENTS Councilmember Kelly had nothing to report. Councilmember Wick stated he had orientation for clean air agency board and DOE released a report on overburdened cities and noted there could additional requirements for businesses on air particulates and if the city would like to provide a statement or letter it would need to be done in the next couple of weeks. Councilmember Merkel made comments regarding the city achievements and noted that he doesn't celebrate raising taxes and spoke about another tax related issue from STA and pointed out figures on STA. He also spoke about zombie properties within the area. Councilmember Yaeger noted that she appreciated the time spent together in Olympia, spoke about the sales tax recently passed. Councilmember Haley spoke about sales tax that passed and noted that the public voted for and they spoke loud and clear with their votes. She also spoke about STA and they handle 10 million rides a year and that includes the paratransit noted and the importance of transit and it is needed throughout our community. Deputy Mayor Hattenburg had nothing to report. MAYOR'S COMMENTS Mayor Padden spoke about the impressive list of accomplishments presented this evening. She also spoke about the regulations to our officers, and we have still managed to recruit new officers, adopted ordinances to make our community safer, we are the city that is located in a geographically difficult area, we have worked hard and been successful in obtaining state and federal monies. We have to be ready to start the projects and be on time and within budget. Our state policies are driving complicated issues, but we still have business friendly development, successful tourism locations and events. All of this has to be done with a very hard-working and dedicated staff and that shows the innovative leadership within the city. Congrats on a successful 2025. CITY MANAGER COMMENTS Council Meeting Minutes: 02-03-2026 Page 5 of 6 Approved by Council: 03-31-2026 City Manager Hohman asked Chief Ellis to speak about a new Crime Check opportunity. Chief Ellis spoke about a new tool at the dispatch. This tool can assist with non -emergency situations and help reduce waiting times on calls and free up human dispatchers to assist with current emergencies. Mr. Hohman provided clarification on Councilmember Merkel's statement about nuisance homes and noted that we do have code for those homes and that code enforcement and law enforcement work well together in identifying the locations. Mr. Hohman also thanked Congressman Baumgartner with the assistance in city funding that was received. The city received $4M in congressional directed spending award for the Sullivan Trent project. EXECUTIVE SESSION It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn at 9: ISp. in. A ST: mM , "A /)n) J Marci tterson, City C erk Laura Padden, Mayor Council Meeting Minutes: 02-03-2026 Approved by Council: 03-31-2026 Page 6 of 6 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: February 3, 2026 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ public hearing ❑ information ❑ admin. report ® new business AGENDA ITEM TITLE: Motion Consideration of Emergency Interim Ordinance No. 26-002 Prohibiting Battery Energy Storage Systems Within the City. GOVERNING LEGISLATION: RCW 35A.63.220 and 36.70A.390, WAC 197-11-880 PREVIOUS COUNCIL ACTION TAKEN: Not applicable BACKGROUND: As the nation's energy needs and the use of renewable energy sources have increased over the past decade, the use of Battery Energy Storage Systems has emerged as a new type of land use that is being seen throughout the country, including in Washington. Battery Energy Storage Systems (or "BESS") are an emerging type of energy storage technology that uses groups of large, rechargeable chemical batteries to store electrical energy for future use and typically consists of batteries, power conversion systems, and control equipment. BESS are typically large facilities that store excess power when it is not necessary to power the larger grid and release the power back to grid when it is needed. It is widely understood that BESS facilities are prone to catching fire and "thermal runaway" events. A thermal runaway is a hazardous, uncontrolled chain reaction where a chemical battery cell overheats, and thereby creates a feedback loop that releases even more energy and causes further temperature spikes. When left unchecked, this process leads to fire or explosion and can spread to other batteries that are part of the same BESS. These fires and resulting release of toxic fumes can last several days and present an increased risk of harm to the surrounding community compared to other structural fires. Per the Western Electricity Coordinating Council, there have been 22 fires at BESS facility across the United States since 2019. When the City adopted its zoning code, as well as when the City adopted the 2016 periodic updates to the City's comprehensive plan in accordance with the Growth Management Act, BESS facilities were not known or anticipated as a potential land use. The City's zoning code and comprehensive plan are therefore silent regarding BESS land uses. Critically, the City's current land use regulations do not (1) identify what zones, if any, wherein BESS uses should be allowed or prohibited, or (2) place any restrictions or conditions on BESS land uses that may be necessary or prudent to protect persons and property within the scope of dangers posed by BESS. Jurisdictions who have adopted regulations for BESS typically require BESS facilities to comply with land use restrictions specific to mitigating the dangers of BESS. These regulations typically (i) require increased property line setback distances; (ii) limit the maximum footprint of BESS facilities to a percentage of the overall lot size; and (iii) limit the noise and light pollution emanating from BESS operations. Cities may explore additional regulation, such as requiring the operator to develop and implement an emergency preparedness and response plan in conjunction with local fire and law enforcement agencies in order to mitigate the danger of fire and resulting impacts on the surrounding community. In summary, (1) BESS are known to present the danger of explosion, fire, thermal runaway, and release of toxic fumes which endanger persons and property within the same neighborhood, (2) BESS uses were not foreseen when the City adopted its current land use regulations, and (3) the City's land use regulations do not identify whether, where, and under what restrictions BESS uses may be allowed within the City without presenting the imminent risk of harm to public health, safety, and welfare. Emergency Interim Ordinance Prohibiting BESS Within the City. RCW 35A.63.220 authorizes City Council to enact an interim land use regulation without first requiring a public hearing so long as Council (a) holds a public hearing on the interim regulation within 60 days of its adoption, and (b) adopts findings of fact justifying the action before or immediately after the public hearing. Such interim regulations may be in effect for up to 1 year if a work plan is developed for related studies providing for the longer period. Interim regulations "may be renewed for one or more six-month periods if a subsequent public hearing is held and findings of fact are made prior to each renewal." RCW 35A.63.220. Per WAC 197-11-880, emergency interim land use regulations are also exempt from the SEPA process. For the reasons previously set forth herein, the development of BESS facilities in the City under the current land use regulations would present a serious risk of imminent harm to the health, safety, and welfare of the public. The attached proposed Ordinance No. 26-002, if adopted, protects the public from these dangers by preventing large BESS (i.e. those able to store more than 2 megawatts) from locating within the City until after either the City adopts permanent BESS land use regulations or 1 year has passed, whichever occurs earlier. OPTIONS: Waive the 3-touch rule and adopt Interim Ordinance 26-002 or take other action Council deems appropriate. RECOMMENDED ACTION OR MOTION: I move to waive the rules and adopt Interim Ordinance 26- 002 Prohibiting Battery Energy Storage Systems within the City of Spokane Valley. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: City Attorney Kelly Konkright; Planning Manager Steve Roberge ATTACHMENTS: 0 Proposed Interim Ordinance 26-002 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO.26-002 AN EMERGENCY INTERIM ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, PROHIBITING BATTERY ENERGY STORAGE SYSTEMS WITHIN THE CITY. WHEREAS, the City of Spokane Valley ("City") is a noncharter code city established in accordance with Title 35A, Title 11 of the Revised Code of Washington; and WHEREAS, pursuant to Article 11, Section 11 of the Washington Constitution, the City of Spokane Valley ("City") is authorized to "make and enforce within its limits all such local police, sanitaiy and other regulations as are not in conflict with general laws," which includes the adoption of regulations governing land uses within the city; and WHEREAS, RCW 35A.63.220 and RCW 36.70A.390 authorize the City Council to enact an interim land use regulation prior to holding a public hearing, provided the City conducts a public hearing on the interim regulation within 60 days of the date of adoption of the same; and WHEREAS, pursuant to WAC 197-11-880, the adoption of this interim land use ordinance is exempt from the requirements of a threshold determination under the State Environmental Policy Act (SEPA) and future permanent zoning regulations will be reviewed in accordance with SEPA Rules; and WHEREAS, the development and use of Battery Energy Storage Systems (`BESS") is increasing throughout the country; and WHEREAS, BESS is an emerging type of energy storage technology that uses groups of large, rechargeable batteries to store electrical energy for fixture use and typically consists of batteries, power conversion systems, and control equipment; and WHEREAS, BESS facilities were not anticipated when the City's zoning code was adopted, and therefore BESS facilities are not addressed in the Spokane Valley Municipal Code ("SVMC"); and WHEREAS, BESS facilities can have significant and serious risks, such as thermal runaway situations, fires, explosions, and the release of toxic gases therefrom, which present a danger to the public health, safety and welfare; and WHEREAS, BESS facilities may be designed in a variety of ways depending on the number of battery modules and the type of batteries used (e.g., lithium -ion, lead -acid, nickel - cadmium, sodium -sulfur); and Ordinance 26-002 Pagel of 4 WHEREAS, time is needed for the City Council to study whether or not BESS facilities are compatible within certain uses and zoning designations, either as permitted or conditionally allowed uses, and if so, in which zone(s) and whether current zoning regulations in the City and/or other official controls and development standards need to be updated to ensure such facilities can be safely and appropriately sited within the City; and WHEREAS, applying current zoning regulations to new technologies and business models such as BESS facilities could result in BESS facilities being located in heavily populated and/or travelled areas of the City without safeguards that are necessary to protect public health, safety, and welfare from serious harm, particularly when current regulations have not been reviewed or updated for best practices nor reconsidered in light of technological changes and effects that BESS facilities have on surrounding areas and community resources; and WHEREAS, in order to protect public safety, health and welfare, the City Council finds that it is necessary to adopt an emergency interim ordinance prohibiting the development of BESS facilities within the City until after City Council is able to study the issue and adopt regulations necessary to protect public health, safety and welfare; and NOW, THEREFORE, the City Council of the City of Spokane Valley ordains as follows: Section 1. Preliminary Findings. The City Council hereby adopts the above recitals as findings of fact in support of this Ordinance. Section 2. Interim Amendment Adopted. The City Council hereby declares an emergency and adopts SVMC 19.60.060, attached hereto as Exhibit A, on an interim basis for the next 365 days unless earlier terminated by Council. This temporary interim ordinance is adopted pursuant to RCW 35A.63.220 and RCW 36.70A.390. Section 3. Public Hearing. Pursuant to RCW 35A.63.220, the City Council shall conduct a public hearing on this interim ordinance on March 17, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, to hear and consider the comments and testimony of those wishing to speak at such public hearing regarding the interim amendment set forth in this Ordinance. The hearing will take place at the City of Spokane Valley City Hall in City Council Chambers, 10210 East Sprague Avenue, Spokane Valley, 99206. Immediately after conducting the public hearing, the City Council shall adopt findings of fact on the subject of this interim amendment and either justify the continued adoption of the interim amendment, cancel the interim amendment, or modify the interim amendment as determined necessary. Section 4. Work Plan. A year is necessary for the City to accomplish the following studies and investigative review to determine whether, and if so, under what conditions and regulations BESS facilities can be sited within the City. During the moratorium period: (i) City staff and the Planning Commission will study and evaluate the issues concerning the nature of BESS, including the dangers and risks posed thereby, potential compatible and incompatible uses, and the prevailing best practices of land use planning agencies to protect the public from the Ordinance 26-002 Page 2 of 4 dangers posed by BESS facilities, (ii) City staff will develop a draft ordinance with recommended land use regulations for BESS facilities, (iii) the draft ordinance will undergo SEPA review, (iv) the Planning Commission will review the draft ordinance, hold a public hearing, and thereafter recommend permanent regulations that address whether, where and under what regulations and restrictions BESS facilities may be located within the City, and (v) City Council will thereafter review and take action on the Planning Commission's recommendation. Section 5. Duration. The interim regulations set forth in this Ordinance shall be in effect as of the date of this Ordinance and shall continue in effect for a period of 365 days from the date of this Ordinance, unless repealed, extended, or modified by the City Council after subsequent public hearing(s) and entry of appropriate findings of fact, pursuant to RCW 35A.63.220. Section 6. Ratification. Any act consistent with the authority set forth herein and prior to the effective date of this Ordinance is hereby ratified and affirmed. Section 7. 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 S. Declaration of Emergency; Effective Date. For the reasons identified above, the City Council hereby finds and declares (i) a public emergency exists threatening the public health, safety, and welfare; and (ii) this interim ordinance must be imposed as an emergency measure to protect the public health, safety, and welfare while the City considers permanent regulations pertaining to BESS facilities. This Ordinance does not affect existing vested rights, nor will it prohibit development within the City since all other allowable uses are not affected by this interim amendment. Based on the reasons and declaration of emergency stated herein, this Ordinance shall take effect immediately upon adoption by the City Council. Passed by the City Council this 3rd day of February, 2026. Laura Padden, Mayor ATTEST: City Clerk, Marci Patterson Approved as to Form: Office of the City Attorney Ordinance 26-002 Page 3 of 4 EXHIBIT A 19.60.060 — Battery Energy Storage Systems Facilities Prohibited A. "Battery Energy Storage Systems" or "BESS" means a system consisting of one or more rechargeable batteries assembled together, capable of storing energy in order to supply electrical energy at a future time. Such systems typically include battery chargers, controls, power conditioning systems, and associated electrical equipment, and are typically used to provide standby or emergency power, uninterruptable power supply, load shedding, load sharing, smoothing and dispatching of intermittent renewable energy sources, or similar capabilities. As used herein, BESS does not include energy storage systems that are unable to store more than two (2) megawatts of electrical energy. B. BESS are prohibited from locating or otherwise being developed within the City of Spokane Valley, and the City is prohibited from accepting any application to develop BESS in the City. Ordinance 26-002 Page 4 of 4 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: February 3, 2026 Department Director Approval: ❑ Check all that apply: ❑ consent ❑ old business ❑ public hearing ❑ information ❑ admin. report ® new business AGENDA ITEM TITLE: Motion Consideration Emergency Interim Ordinance 26-004 Reclassifying Marijuana Retail Sales as Legal Nonconforming GOVERNING LEGISLATION: RCW 35A.63.220 and 36.70A.390, WAC 197-11-880, Title 19 SVMC. PREVIOUS COUNCIL ACTION TAKEN: Adoption of chapter 19.85 SVMC, last updated in 2021. BACKGROUND: Federal law has prohibited the manufacture and possession of marijuana as a Schedule I drug since 1970. On November 6, 2012 voters of the State of Washington approved Initiative Measure No. 502 (I-502), which among other things, decriminalized possession and use of certain amounts of marijuana and marijuana paraphernalia and established a regulatory system for licensing producers, processors, and retailers of recreational marijuana for adults 21 years of age and older. In the wake of I-502, Spokane Valley adopted development regulations to address the siting of marijuana uses such as production, processing, transportation, and retail sales within City limits. These regulations can be found in chapter 19.85 SVMC. According to the City's marijuana retail sales standards, the only marijuana retail stores allowed to operate within the City are those that were established prior to July 27, 2016 — new retail sales would not be permitted within any zoning district. SVMC 19.85.030. Currently, the City has three marijuana retail stores permitted as a legal use. While the City's code currently prohibits existing marijuana retail stores from moving to a new zone because doing so would establish a new marijuana sales use in violation of the code, the retail stores may relocate within the zone they currently occupy subject to buffer zones established in state law and the City's code. Over the last decade, reviews and studies have been conducted that evidence the potential harms posed by marijuana use, especially among adolescents and young adults. In a consensus statement written for the Washington State Prevention Research Subcommittee, researchers from the University of Washington and Washington State University found that "[t]here is strong evidence on the detrimental impact of THC use during adolescence (14-18 years of age), and negative impacts may be higher for adolescents who use cannabis with high THC concentration or use more frequently." PRSC Cannabis Concentration Workgroup (2020). Cannabis Concentration and Health Risks: A Reportfor the Washington State Prevention Research Subcommittee (PRSQ. Seattle, WA: University of Washington. This consensus statement was the impetus for a report funded by ESSB 5092 (2021) which recommended ways to decrease use of THC by adolescents. Ultimately, SB 6220 (2024), which would have raised the age for those able to access high potency marijuana to 25 based on the report's recommendations, failed to make it out of committee. While there are legislative efforts to curtail the use of high potency marijuana by increasing the tax rate on such products, this does nothing to decrease overall marijuana use by adolescents. Studies have suggested the proximity of retail marijuana businesses to neighborhoods is associated with more positive perceptions of use and a higher likelihood of use. Emergencv Interim Ordinance 26-004 Reclassifvina Marijuana Retail Sales as Leal Nonconformin RCW 35A.63.220 authorizes City Council to enact an interim land use regulation without first requiring a public hearing so long as Council (a) holds a public hearing on the interim regulation within 60 days of its adoption, and (b) adopts findings of fact justifying the action before or immediately after the public hearing. Such interim regulations may be in effect for up to 1 year if a work plan is developed for related studies providing for the longer period. Interim regulations "may be renewed for one or more six-month periods if a subsequent public hearing is held and findings of fact are made prior to each renewal." RCW 35A.63.220. Per WAC 197-11-880, emergency interim land use regulations are also exempt from the SEPA process. To address the health, safety and welfare concerns of vulnerable citizens such as adolescents, Emergency Interim Ordinance 26-004 would render all legally existing marijuana retail sales uses within the City legal nonconforming uses subject to chapter 19.25 SVMC. The ordinance would continue the prohibition on new marijuana retail stores, and would curtail the ability of existing stores from relocating within the City until further study is conducted by City staff and the Planning Commission. This ordinance does not force any marijuana retailer to close its business within the City and establishes a work plan for Planning Commission to receive testimony and ultimately make a recommendation regarding permanent regulations to address the concerns. If adopted, Ordinance 26-004 would be effective immediately. OPTIONS: Waive the 3-touch rule and adopt Emergency Interim Ordinance 26-004 or take other action Council deems appropriate. RECOMMENDED ACTION OR MOTION: I move to waive the rules and adopt Emergency Interim Ordinance 26-004 establishing existing marijuana retail sales uses as legal nonconforming and other matters related thereto. BUDGET/FINANCIAL IMPACTS: Since 2019, the State of Washington has recorded $3.21 billion of tax revenue from marijuana sales. The City currently receives a small proportion of tax revenue generated by marijuana retail establishments in the City. For the previous five years, the City's distribution has been between $180,000 to $280,000 annually. The distribution is made up of a proportional share of the revenues generated by taxes on marijuana collected within the City and a per capita distribution based on population proportions. The distribution based on the proportion of revenues collected in the City will decline if current establishments cease operation. Only "jurisdictions that do not prohibit the siting of any state licensed cannabis producer, processor, or retailer" are eligible for per capita distribution. A majority of the City's distribution is made up of the per capita distribution, which could be directly impacted by this ordinance. STAFF CONTACT: Tony Beattie, Senior Deputy City Attorney ATTACHMENTS: Proposed Emergency Interim Ordinance 26-004 Marijuana Retail Sales as Legal Nonconforming Draft CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO.26-004 AN EMERGENCY INTERIM ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING TITLE 19 OF THE SPOKANE VALLEY MUNICIPAL CODE TO RECLASSIFY MARIJUANA RETAIL SALES USES AS NONCONFORMING UNTIL FURTHER EVALUATION IN CONJUNCTION WITH THE CITY'S COMPREHENSIVE PLAN AMENDMENT PROCESS, AND OTHER MATTERS RELATING THERETO. WHEREAS, the City of Spokane Valley ("City") is a noncharter code city established in accordance with Title 35A of the Revised Code of Washington ("RCW"). WHEREAS, pursuant to Article 11, Section 11 of the Washington Constitution, the City of Spokane Valley ("City") is authorized to "make and enforce within its limits all such local police, sanitary and other regulations as are not in conflict with general laws," which includes the adoption of regulations governing land uses within the city; and WHEREAS, in 2012, voters of the State of Washington approved Initiative Measure No. 502 ("I-502"), which decriminalized possession and use of certain amounts of marijuana, and established a licensing system for producers, processors, and retailers of recreational marijuana for adults 21 years of age and older; and WHEREAS, the City regulates marijuana land uses in chapter 19.85 of the Spokane Valley Municipal Code ("SVMC"), and the permitted use matrix in SVMC 19.60.050; and WHEREAS, the City's current regulations state that "[m]arijuana sales uses in existence and in continuous and lawful operation prior to July 27, 2016, shall not be deemed nonconforming and shall be permitted as a legal use...."; and WHEREAS, the City is currently in the middle of reviewing its Comprehensive Plan and completing the City's Periodic Update; and WHEREAS, as part of that review, the Planning Commission and City Council will be reviewing appropriate zoning designations and the specific uses allowed in each zone; and WHEREAS, studies have shown that for young adults, "nearby availability of cannabis retail outlets is associated with a higher likelihood of cannabis use and perception of access to cannabis."'; and Rhew, I. C., Guttmannova, K., Kilmer, J. R., Fleming, C. B., Hultgren, B. A., Hurvitz, P. M., Dilley, J. A., & Larimer, M. E. (2022). Associations of cannabis retail outlet availability and neighborhood disadvantage with cannabis use and related risk factors among young adults in Washington State. Drug and alcohol dependence, 232, 109332. https://doi.org/10.1016/J*.drugalcdep.2022.109332 Ordinance 26-004 Page 1 of 10 Draft WHEREAS, City Council finds that Washington state's most prominent cannabis researchers at the University of Washington and Washington State University released a consensus statement about the public health risks posed by high THC products. 2 That statement summarizes the best available science: "There is strong evidence on the detrimental impact of THC use during adolescence (14-18 years of age), and negative impact may be higher for adolescents who use cannabis with high THC concentration or use more frequently. Use of cannabis with high THC concentration increases the chances of developing cannabis use disorder or addiction to cannabis, particularly among adolescents. High -potency cannabis use can have lifelong mental health consequences, which often manifest in adolescence or early adulthood. Daily cannabis use, particularly of high -potency products, increases the risk of developing a psychotic disorder, like schizophrenia, and is related to an earlier onset of symptoms compared to people who do not use cannabis."; and WHEREAS, in 2022, at the direction of the state legislature, the Addictions, Drug, and Alcohol Institute at the University of Washington completed a report that made science -backed policy recommendations to stem the tide of public health harms associated with high THC products.' These recommendations included prohibiting marketing and advertising of high THC products, raising the legal age for purchasing high THC products to 25 years old, and a robust education campaign regarding the risks posed by such products; and WHEREAS, recent research found that "[a]dolescents who reported more positive outcome beliefs about marijuana and perceived close proximity to marijuana retailers were the most likely to report intentions to use marijuana[,]" and suggests, among other strategies, considering "the proximity of marijuana retailers to neighborhoods or living complexes[,]" when adopting land use regulations 4; and WHEREAS, proposed Senate Bill 6220 in the 2024 Regular Session would have required the Liquor and Cannabis Board to define high THC concentration by July 1, 2026 and would have raised the minimum age for purchasing cannabis products containing high THC concentration to 25, but was ultimately not adopted; and WHEREAS, the City Council wishes to conduct further review of the areas in which marijuana retail sales are currently allowed within the jurisdiction, to determine whether current policy should be modified given the association between residing in proximity to a marijuana retail 2 PRSC Cannabis Concentration Workgroup (2020). Cannabis Concentration and Health Risks: A Report for the Washington State Prevention Research Subcommittee (PRSC). Seattle, WA: University of Washington. https•//adai uw edu/Cannabis-Concentration-and-Health-Risks-2020.pdf 3 High THC concentration cannabis policy — Final Report, Exploring policy solutions to address public health challenges of high THC products. Washington State Health Care Authority and the Addictions, Drug & Alcohol Institute, University of Washington. December 31, 2022. https://adai.uw.edu/wordpress/wp-content/uploads/High- THC-Policy-Final-Report-2022.pdf a Stacey J.T. Hust, Jessica Fitts Willoughby, Jiayu Li & Leticia Couto (2020) Youth's Proximity to Marijuana Retailers and Advertisements: Factors Associated with Washington State Adolescents' Intentions to Use Marijuana, Journal of Health Communication, 25:7, 594-603, DOI 10.1080/10810730.202.1825568. Ordinance 26-004 Page 2 of 10 Draft establishment and increased risk of adolescent marijuana use, and the serious harm that marijuana use can pose to adolescents; and WHEREAS, RCW 35A.63.220 and RCW 36.70A.390 authorize the City Council to enact an interim land use regulation prior to holding a public hearing, provided the City conducts a public hearing on the interim regulation within 60 days of the date of adoption of the same; and WHEREAS, pursuant to WAC 197-11-880, the adoption of this interim land use ordinance is exempt from the requirements of a threshold determination under the State Environmental Policy Act (SEPA) and future permanent zoning regulations will be reviewed in accordance with SEPA Rules; and WHEREAS, due to the review underway via the Comprehensive Plan and the potential for changes to zoning districts, the City Council finds that this ordinance to prevent retail sales uses being established in new locations is necessary for the immediate preservation of the public health, public safety, public property, and public peace. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Preliminary Findings. The City Council hereby adopts the above recitals as findings of fact in support of this Ordinance. Section 2. Interim Amendment Adopted. Based on the adopted findings, the City Council hereby declares an emergency and adopts the interim amendments to Title 19 SVMC as provided in Exhibit A. This temporary interim amendment is adopted pursuant to RCW 35A.63.220 and RCW 36.70A.390. Section 3. Public Hearing. Pursuant to RCW 35A.63.220, the City Council shall conduct a public hearing on this interim amendment on March 17, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, to hear and consider the comments and testimony of those wishing to speak at such public hearing regarding the interim amendment set forth in this Ordinance. The hearing will take place at the City of Spokane Valley City Hall in City Council Chambers, 10210 East Sprague Avenue, Spokane Valley, 99206. Immediately after conducting the public hearing, the City Council shall adopt findings of fact on the subject of this interim amendment and either justify the continued adoption of the interim amendment, cancel the interim amendment, or modify the interim amendment as determined necessary. Section 4. Work Plan. The following work plan is adopted to address the issues involving the City's regulation of marijuana retail sales uses: A. City staff shall provide information and a draft ordinance to the Planning Commission for consideration. The draft ordinance will undergo SEPA review, and the Planning Commission shall hold public hearings and meetings to receive and consider statements, testimony, positions, documentation, or other evidence related to the public health, safety, and welfare of marijuana retail sales uses in the City. This work shall Ordinance 26-004 Page 3 of 10 Draft be considered along with and in anticipation of changes to the Comprehensive Plan. This review shall consider the harm to adolescents associated with residing in proximity to retail marijuana sales uses. Based on their review and study, the Planning Commission will make a recommendation as to the final marijuana retail sales regulations and forward said recommendation to City Council. Section 5. Duration. The interim amendments set forth in this Ordinance shall be in effect as of the date of this Ordinance and shall continue in effect 365 days from the date of this Ordinance, unless repealed, extended, or modified by the City Council after subsequent public hearing(s) and entry of appropriate findings of fact, pursuant to RCW 35A.63.220. Section 6. Ratification. Any act consistent with the authority set forth herein and prior to the effective date of this Ordinance is hereby ratified and affirmed. Section 7. 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 8. Declaration of Emergency; Effective Date. The City Council hereby declares this Ordinance is in response to a public emergency and it is necessary for the protection of public health, public safety, public property, and public peace of the citizens, especially vulnerable and impressionable adolescents to amend Title 19 SVMC to prohibit the relocation of any existing retail marijuana sales uses until further study can be completed by reclassifying marijuana retail sales uses as legal nonconforming. This Ordinance does not affect existing vested rights, nor does it prohibit currently established marijuana retail sales uses from continuing operation within the City as provided by the lawful nonconforming use regulations in chapter 19.25 SVMC. Based on the adopted findings and declaration of emergency stated herein, this Ordinance shall take effect immediately upon adoption by the City Council. Passed by the City Council this 3rd day of February, 2026. Laura Padden, Mayor ATTEST: City Clerk, Marci Patterson Approved as to Form: Office of the City Attorney Ordinance 26-004 Page 4 of 10 Draft EXHIBIT "A" 19.60.050 Permitted uses matrix. Residential Mixed Use Commercial Industrial Parks and Open Space R-1 R-2 R-3 R-4 MFR MU CMU NC RC IMU I POS Agriculture and Animal Animal processing/handling P Animal raising and/or keeping S S S S S S S Animal shelter S P P Beekeeping, commercial P Beekeeping, hobby S S S S Community garden S S S S S S S S Greenhouse/nursery, commercial P P P Kennel S S S S P P Orchard, tree farming, commercial P P Riding stable P P C Communication Facilities Radio/TV broadcasting studio P P P P Repeater facility P P P P P P P P P Small cell deployment S S S S S S S S S S S S Telecommunication wireless antenna array S S S S S S S S S S S Telecommunication wireless support tower S S S S S S S S S S S Tower, ham operator S S S S S S S S S S S Community Services Community hall, club, or lodge P P P P P P P P Church, temple, mosque, synagogue and house of worship P P P P P P P P P Crematory P P P P Emergency housing S S S S S Emergency shelter S S S S S Funeral home P P Permanent supportive housing S S S S S S S S S S S Ordinance 26-004 Page 5 of 10 Draft Residential Mixed Use Commercial Industrial Parks and Open Space R-1 R-2 R-3 R-4 MFR MU CMU NC RC IMU I POS Transitional housing S S S S S S S S S S S Transitional parking S S S S S Day Care Day care, adult P P P P P P P P P P P Day care, child (12 children or fewer) P P P P P P P P P P P Day care, child (13 children or more) C C C C P P P P P P P Eating and Drinking Establishment P P P P P P S Education Schools, college or university P P P Schools, K through 12 P P P P P P P P P Schools, professional, vocational and trade schools P P P P P P Schools, specialized training/studios P P P P Entertainment Adult entertainment and retail S Casino P P P Cultural facilities P P P P Exercise facility S S S S Off -road recreational vehicle use P P Major event entertainment P P P Racecourse P P P P Racetrack P P Recreational facility P P P P P P Theater, indoor P P P Group Living Assisted living/convalescent/ nursing home P P P P Community residential facilities (8* residents or less) P P P P P P P Community residential facilities (greater than 8* and under 25 residents) P P P Dwelling, congregate P P P Industrial, Heavy Ordinance 26-004 Page 6 of 10 Draft Residential Mixed Use Commercial Industrial Parks and Open Space R-1 R-2 R-3 R-4 MTR MU CMU NC RC IMU I POS Assembly, heavy P Hazardous waste treatment and storage S S Manufacturing, heavy P Processing, heavy P Mining S Industrial, Light Assembly, light P P P P P Manufacturing, light P P P Processing, light P P Recycling facility S S S S Industrial service P P Lodging Bed and breakfast P P P P P P Hotel/motel P P P P S Recreational vehicle park/campground S Marijuana Uses Marijuana club or lounge Marijuana cooperative Marijuana processing S S Marijuana production S S Marijuana sales S S S S Medical S P P P P P Office Animal clinic/veterinary S S S S S Office, professional P P P P P P P Parks and Open Space Cemetery P P P P Golf course P P P P P P P P P Golf driving range C C C C C P C P P P Parks P P P P P P P P P P Ordinance 26-004 Page 7 of 10 Draft Residential Mixed Use Commercial Industrial Parks and Open Space R-1 R-2 R-3 R-4 11IFR MU CNIU NC RC IMU I POS Public/Quasi-Public Community facilities P P P P P P P P P P P P Essential public facilities* E E E E E E E E E E E Public utility local distribution facility S S S S S S S S P P P S Public utility transmission facility S S S S S S S S S S S S Tower, wind turbine support S S S S Residential Dwelling, accessory units S S S S S S S S S Dwelling, caretaker's residence S S S S S Dwelling, cottage S S S S Dwelling, duplex S P P S S Dwelling, industrial accessory dwelling unit S S Dwelling, multifamily P P P Dwelling, single-family P P P P P P P P Dwelling, townhouse S S S S S Manufactured home park S S S Retail Sales and Service P P S P P S S Transportation Airstrip, private P P Battery charging stations S S S S P P P P P P P S Electric vehicle infrastructure P P P P P P P P Heliport P P Helistop C C P Parking facility — controlled access P P P P P Railroad yard, repair shop and roundhouse P Transit center P P P P P Vehicle Services Automobile impound yard P P Automobile/taxi rental P P P P P Ordinance 26-004 Page 8 of 10 Draft Residential Mixed Use Commercial Irrdustrial Parks and Open Space R-I R-2 R-3 R-4 MFR MU CMU NC RC IDIIU I POS Automobile parts, accessories and tires P P P P P Automobile/truck/RV/ motorcycle painting, repair, body and fender works P P P P Car wash P P S P P P Farm machinery sales and repair P P P Fueling station P P S P P P Heavy truck and industrial vehicles sales, rental, repair and maintenance P P Passenger vehicle, boat, and RV sales, service and repair P P P Towing P P P P Truck stop P P Warehouse, Wholesale, and Freight Movement Auction house P P P Auction yard (excluding livestock) P P Catalog and mail order houses P P P P P Cold storage/food locker P P Freight forwarding P P Grain elevator P P Storage, general indoor P P S P P P Storage, general outdoor S S S S P P Storage, self-service facility P P P P P P Tank storage, critical material above ground S S Tank storage, critical material below ground S S S Tank storage, LPG above ground S S S S S S Warehouse P P P P P Wholesale business P P P P P 19.85.030 Marijuana retail sales standards. New marijuana retail sales shall not be permitted within any zoning districts. Any marijuana retail sales use lawfully perating within the City as of FebruaLy 3 2026 shall be deemed a legal nonconforming use and allowed to continue subject to the regulations of chapter 19.25 SVMC. Ordinance 26-004 Page 9 of 10 Draft Mar�uana in in lawfol to july 27, 2016, shall not be sales uses existence and continuous and opet!atian prior- following:B. deemed nonconforming and shall be permitted as a legal use subject to the mar�uana sales shall bee located or maintained at least measured f000 feet 4-em the nearest line, from the nearest preputy line o mar�uana sales facility to the nearest property line of an), one or more of the followingthe uses: 1 C'entTrail; . Tra 2 A„nlowa, Tr il4. 3. Vaeant f -eels by dktriptq as established in RGIAI T-itle 28A; oi- undeveloped Vacant pat ovvned public sehool by library distriets in Chapter 27.12 or undeveloped Vacant pareels owned public as established !eased by the City; f f4eility or right of way or undeveloped !eased pareels by the City or owned provided designated identified any stormwater facility of IIA,a5 i par -eels owned or doeument, and or as a stosim,ater by the be ftom or right SVN4C; 19.85.030; I or plan, or building5. program adopted designated eouneil shall exoluded identified in consideration under tcSpolcane Valley City „ A-1- A-thP-,I- or anydocument,plan, ter that identifies faoilities or program or buildings as the Cib,'s administrative and 1, (`om legislative location; Sim-ilai- -in such o pr-imal�, Ordinance 26-004 Page 10 of 10 Spokane jValle � 10210 E Sprague Avenue El Spokane Valley WA 99206 Y Phone: (509) 720-5000 ❑ www.SpokaneValleyWA.gov --- `_�— = _ — - — ------------- ----- - - - — - —ate Memorandum To: Mayor and City Council From: Virginia Clough, Legislative Policy Coordinator Date: February 3, 2026 Re: Gordon Thomas Honeywell — Government Relations Legislative Report — Jan. 31, 2026 Please find attached Gordon Thomas Honeywell's legislative report providing an overview of this week as well as a recap of Jan. 26-31. This week shifts from public hearings to executive sessions as the Policy Committee and Fiscal Committee cutoffs are Feb. 4 and 9, respectively (unless the bills are necessary to implement the budget -- NTIB). Budget discussions continue behind closed doors with the much -discussed income tax proposal rumored to be announced within the week. Budget proposals will be released after the Feb. 16 economic revenue forecast. This week's report recaps key discussion points from our Olympia meetings including: • Balfour Park Capital Budget Request • Increased funding for the Spokane Regional Traffic Management Center to ensure it is fully funded as are the other three TMCs statewide • SB 6239 — Government Tort Arbitration — Kelly Konkright testified in support • HB 2291 — Kratom Protection Act — CM Kelly testified "other" asking for the preemption language to be removed so the city can enact a ban • HB 2266/SB 6069 — STEP Housing allowed in all zones except industrial— Gloria Mantz testified against the Senate bill (CM Wick previously testified against the House bill). • HB 2614/SB 6204 — Home Cannabis Cultivation — the city signed in con on both bills but the House bill's public hearing was removed. The remaining bills highlighted in the report are all on our radar and we are actively tracking them. Last week we engaged on 16 bills. Due to the Olympia trip last week and catching up this week, we have not yet created the legislative update webpage requested by Council, but discussion has commenced. February 4, 2026 February 9, 2026 February 17, 2026 February 25, 2026 March 2, 2026 March 6, 2026 March 12, 2026 Weekly Overview GORDON THOMAS HONEYWELL GOVERNMENT RELATIONS City of Spokane Valley Legislative Report January 31, 2026 SESSION CUTOFF CALENDAR Policy Committee Deadline Fiscal Committee Deadline Chamber -of -Origin Deadline Opposite Chamber Policy Committee Deadline Opposite Chamber Fiscal Committee Deadline Opposite Chamber Deadline Session adiourns - Sine Die With the first cutoff deadline quickly approaching, the primary focus for legislators has shifted from public hearings to executive sessions. Bills must be voted out of policy committees by Wednesday, February 4 and fiscal committees by Monday, February 9 to remain under consideration this session, unless deemed necessary to implement the budget (NTIB). Democrats are fast -tracking policies responding to ICE enforcement incidents occurring nationally. Legislation to ban face coverings, limit the hiring of former ICE officers, and other policies have received significant attention. Budget development is quietly occurring behind closed doors. The much -discussed income tax proposal is rumored to be announced within the week. Democrats have also indicated that there is interest in reversing certain reductions from the prior session — particularly in higher education — but said it is too soon to know which cuts could realistically be restored. They also discussed challenges forecasting savings from proposed tort liability reforms, noting wide variability in case costs and uncertainty around the Governor's assumption of 7% savings. But proposals will be released after the February 16th economic and revenue forecast. Republicans continue to emphasize that affordability remains their top priority, repeatedly criticizing a series of bills they believe would increase costs for residents. Throughout the session, the Association of WA Cities is hard at work advocating for its members. As such, we will continue to share their resources in addition to the city's tailored GTH-GOV reporting. We encourage you to reference the AWC Legislative Bulletin, which is posted online weekly and includes updates on hot -topic bills related to cities and how AWC plans to weigh in. Legislative Agenda Items Thank you to Mayor Laura Padden, City Council, and City staff for making the trip to Olympia to connect with legislators. We had a productive trip! Balfour Park: The City asks the Legislature for $250,000 to provide lighting for basketball and pickleball courts and audio equipment within Balfour Park that will be under construction in 2026. The funding request form for this project has been submitted. As was discussed throughout our meetings in Olympia, whether or not this project receives funding is somewhat dependent on how the $3.5 million funding request for the Ice Skating Facility is managed. Traffic Management Center: The City is asking that the Legislature increase the funding for WSDOT's Operation and Maintenance budget to eliminate the local contribution that is currently being made to the Spokane Regional Traffic Management Center. The City's lobbyist is working with WSDOT to determine what the appropriate amount of funding needs to be allocated to WSDOT's Operation and Maintenance Budget to accomplish the elimination of the local contribution. Government Tort Arbitration: City Attorney for the City of Spokane Valley, Kelly Konkright, testified in support of Senate Bill 6239 as introduced, arguing that mandatory arbitration of all tort suits against state and local governments facilitates early resolution, cuts litigation costs, conserves scarce judicial resources, and does not hide cases from public scrutiny since suits are filed in court. He noted that the City opposes amendments limiting arbitration only to very old claims that would largely exclude cities. Click here to watch his testimony in the Senate Law & Justice Committee. At the public hearing, the Association of Counties, and several individual counties testified in support, while the Association for Justice, the National Center for Victims of Crime, press advocates, and others testified in opposition to the bill. It was noted that 16 people signed in pro and 723 people signed in con on this bill, but did not testify. The bill as introduced would have required tort claims to undergo mandatory arbitration before they may be scheduled for trial. On January 29, the Senate Law & Justice Committee voted an amended version of Senate Bill 6239 out of committee on a 6-1 vote, with two members making no recommendation; the substitute bill makes arbitration mandatory only for tort claims against the state and local governments (and their officers, employees, and volunteers) that are more than ten years old —measured from the conduct for adult claimants or from age 18 for former minors —while making arbitration optional by agreement for more recent tort claims, creates exceptions to how state and local governments are treated for arbitration purposes, and adds additional legislative intent language to support these changes. These changes move the Trial Lawyers to neutral, but also generally do not make the bill applicable to city tort claims, which typically have a statute of limitations of 3 years. Sen. Dhingra has indicated a willingness to at a study to the bill to ensure that the conversation around liability for cities continues into future legislative sessions. GTH-GOV 2 Kratom Consumer Protection Act: Spokane Valley Councilmember Mike Kelly testified on House Bill 2291, conveying that the City views kratom as a dangerous, addictive substance that is already causing local public health problems and that the City is in the process of drafting an ordinance to ban all kratom sales regardless of age, and therefore asks that Section 31 be amended so local governments can fully prohibit adult sales if they judge it necessary. Click here to watch his testimony in the House Consumer Protection & Business Committee. House Bill 2291, sponsored by Rep. Kristine Reeves (D-Federal Way), creates a comprehensive licensing, testing, packaging, and taxation framework for kratom processors and retailers, including an excise tax dedicated to youth regulated substance prevention, effective January 1, 2027. The House Consumer Protection & Business Committee held a public hearing on the bill on January 30. Testimony against the bill as written cited concerns that the $1,000 per -location license fee is too high and Section 31 has a broad preemption of local authority. Those that testified in support pointed to the danger of having an unregulated, easy -to -acquire, addictive substance that is increasingly used by youth in communities throughout the state. The committee is scheduled to vote on the bill on February 4. We have provided amendment language to remove Section 31. Permitting of STEP (Shelter, Transitional Housing, Emergency Housing, and Permanent Supportive Housing): Spokane Valley City Services Administrator Gloria Mantz testified against House Bill 2266, arguing that different step housing types serve different populations and should be regulated separately, and warning that eliminating substantive operational agreements will increase safety and health problems for residents and neighbors, shifting more calls and costs to law enforcement and local agencies without adequate tools or funding. Click here to watch her testimony in the Senate Housing Committee. House Bill 2266 sponsored by Rep. Strom Peterson (D-Edmonds), and its companion Senate Bill 6069, sponsored by Sen. Emily Alvarado (D-West Seattle), mandate that STEP housing be allowed in all non -industrial urban growth area zones. The bill also restricts cities' ability to require operational or good neighbor agreements. The Senate Housing Committee held a public hearing on Senate Bill 6069 on January 28. Sen. Alvarado shared that if communities want unsheltered homelessness to end, they must stop using discretionary local processes and extra conditions to block shelters and permanent supportive housing, and instead treat STEP housing like any other residential development so people can be brought indoors with dignity and safety. King County's Executive Office, Plymouth Housing, the Attorney General's Office and others testified in support, while the Association of Washington Cities and several communities testified in opposition or with concerns. AWC stressed that requiring emergency shelters and related uses in all non -industrial zones would override local judgment about appropriate locations near transit and services, and that cities need to retain operating -agreement tools to ensure safety while still expanding permanent supportive housing and shelter. Cities shared concerns around the lack of review authority and the inability to condition their own funding or land contributions on basic operational standards and community engagement. House Bill 2266 is scheduled to be voted on by the House Housing Committee on February 2 or February 3, and Senate Bill 6069 is scheduled to be voted on in the Senate Housing Committee on February 4. We expect to have a significantly amended version of the bill for review by Wednesday. GTH-GOV 3 Other Policy Issues Local Decision -Making Authority Residential Required to Be Allowed in Commercial Zones: House Bill 2480, sponsored by Rep. Chipalo Street (D-Seattle), and Senate Bill 6026, sponsored by Sen. Emily Alvarado (D-West Seattle), is Governor -request legislation. It requires jurisdictions with a population of 30,000 or more to permit residential uses in commercial and mixed -use zones, and removes the authority for a local jurisdiction to require ground -floor commercial spaces. On January 28, the Senate Housing Committee voted a substitute version of Senate Bill 6026 out of committee, adding authority for cities to require ground -floor retail or mixed -use in limited, clearly defined areas, such as historic buildings, business improvement districts, station areas, and designated main streets(with exemptions for publicly subsidized affordable housing). The bill allows cities to exclude an additional 20% from the mandates. The substitute bill also requires height bonuses in portions of zones where such requirements are applied and treats certain residential amenity space as ground -floor commercial for these purposes. The House Local Government Committee held a public hearing on a substitute version of House Bill 2480 on January 28, where Rep. Street shared an openness to discussing further amendments to the proposal; AWC, the Washington State Association of Counties, several individual cities, small districts, and commercial district representatives testified in opposition, generally agreeing on the need for housing but warning that the bill goes too far, too broadly, or without adequate protection for small businesses, local tax bases, and the ability to create walkable neighborhoods, while the Governor's Office, Lt. Governor Denny Heck, Sightline Institute, Building Industry Association of Washington, Microsoft, Airbnb, and many others shared their support and emphasized that unlocking underused commercial land and removing inflexible retail mandates will expand housing supply where infrastructure already exists. House Bill 2480 is scheduled to be voted on by the House Local Government Committee on February 3, and Senate Bill 6026 has a public hearing in the Senate Ways & Means Committee on FebruarV 5. Subdivision Law Overhaul: Senate Bill 5633, sponsored by Sen. Liz Lovelett (D-Anacortes), repeals and replaces Washington State's existing subdivision laws with a new framework to modernize and streamline land division processes and promote housing supply. The bill shifts subdivision approvals to administrative processes in jurisdictions planning under the Growth Management Act, introduces a "minor plat" process for dividing single lots, and mandates procedures for unit lot subdivisions to support multifamily development. It establishes uniform standards for subdivision design, expands the use of binding site plans, and sets clear timelines for application review to improve efficiency. The Senate Local Government Committee held a public hearing on JanuarV 29. Those who testified with concerns conveyed that counties remain split on this issue, with some favoring full administrative review and others worrying that removing hearings on large subdivisions reduces transparency. Master Builders Association of King and Snohomish Counties, Building Industry Association of Washington, and others testified in support of the bill because it modernizes old land -use law by applying a streamlined, administrative process to all subdivisions. City of Lakewood testified against the bill with concerns for aspects that narrow meaningful public engagement and local oversight and argued that public hearings and some discretion are needed for high -impact urban plats affecting GTH-GOV 4 critical services and environments, and requested amendments to restore discretion and provide state funding for the mandated ordinance updates and mounting cumulative planning workloads. The committee is scheduled to vote on this bill on February 2. Infrastructure and Frontage Improvements: Senate Bill 6274, sponsored by Sen. Jesse Salomon (D-Shoreline), requires cities and counties planning under the Growth Management Act (GMA) to identify infrastructure barriers that may constrain the feasibility of housing development, including public infrastructure and frontage improvements. The bill directs jurisdictions to periodically review and, if needed, revise street and frontage improvement standards and related public works design standards on the same schedule as comprehensive plan updates. The Senate Local Government Committee held a public hearing on the bill on January 29. Sen. Salomon described how current frontage -improvement mandates (e.g., requiring a lone homeowner to build an entire sidewalk segment costing up to $100,000) can deter infill redevelopment and middle housing, and said his bill requires jurisdictions, through their comprehensive plans, to balance housing and infill goals against such frontage requirements and right -size standards. AWC testified with concerns, sharing that although many cities support updating frontage standards crafted in greenfield eras to better fit infill and middle housing, cities question how to define "disproportionate" or "unnecessary" improvements and how to weigh them against obligations like ADA and safe, walkable streets. AWC suggested Commerce guidance on alternative design options and noted concern that the bill may elevate frontage cost over other GMA goals. Futurewise also shared concerns, agreeing to address cost barriers but warning that tying detailed infrastructure -barrier analysis into the housing element may duplicate capital facilities work. The bill is scheduled to be voted on by the Senate Local Government Committee on February 2• Wildland Urban Interface Building Standards: Senate Bill 6279, sponsored by Sen. Liz Lovelett (D-Anacortes), aligns statewide building codes with updated wildfire hazard and risk maps by directing the State Building Code Council (SBCC) to adopt and implement the International Wildland Urban Interface Code (WUI) or portions of it for high- and very high -risk areas once new statewide maps are completed. The Senate Local Government Committee held a public hearing on the bill on January 29. Sen. Lovelett explained the bill as a companion to prior resiliency and wildfire -planning efforts, aiming to better govern how and where homes are built near wildfire -prone areas, balance housing needs with growing wildfire and insurance risks, and leverage the SBCC and local fire marshals to tailor statewide WUI standards to local conditions. The Association of County Planning Directors, Master Builders Association of King and Snohomish Counties, Building Industry Association of Washington, Washington Rural Environmental Network, and others shared concerns. Commenters widely agreed that integrating new wildfire -urban interface (WUI) requirements now would be premature and burdensome, emphasizing that counties, builders, and local permitting offices lack the staff capacity, clear parcel -level mapping, and regionalized standards needed to apply the code effectively. While some supported refining defensible -space and wildfire -resilience practices, most warned that adopting the international WUI Code or conditioning land -use decisions before mapping and technical guidance are complete would increase costs, strain local systems, and risk misaligned, one -size -fits -all rules that do not reflect the state's diverse landscapes or GTH-GOV 5 existing environmental and planning frameworks. The bill is scheduled to be voted on by the committee on February 2. Miscellaneous Small Works Roster Expansion: House Bill 2420, sponsored by Rep. Janice Zahn (D-Mercer Island), incrementally raises the maximum contract amount eligible for small works roster procurement beginning January 12027, allowing the limit to increase from the current $350,000 to $530,000, while reinforcing competitive pricing and bid procedure requirements and retaining existing documentation, direct contracting, and public access provisions. The House Capital Budget Committee held a public hearing on the bill on January 29. Rep. Zahn shared that the bill implements a unanimous Capital Projects Advisory Review Board recommendation to update small works thresholds for cost escalation, developed after reviewing cost indexes and escalation factors. AWC, the Public Ports Association, the Association of Counties, and other groups shared their support for the bill. There was no testimony in opposition. PTSD Coverage for Local Corrections Workers: Senate Bill 5882, sponsored by Sen. Javier Valdez (D-46th LD), extends industrial insurance protections by creating a prima facie presumption that posttraumatic stress disorder is an occupational disease for local correctional facility workers. The bill aligns these workers' PTSD claims with those of direct care registered nurses, allows recovery of appeal costs when claimants prevail, and takes effect January 1, 2027. The Senate Labor & Commerce Committee held a public hearing on the bill on Januar 26. Sen. Valdez spoke to his bill, urging passage as a needed first step to recognize and treat PTSD arising from continuous trauma exposure among local correctional officers. Washington Association of Sheriffs and Police Chiefs, Washington State Association for Justice, and others testified in support because L&I's policy choice to exclude occupational PTSD disease claims forces correctional officers into difficult, time -limited injury claims, discourages treatment, and lets unfiled prior incidents be used against them. Washington Retail Association, Association of Washington Cities, and others testified against the bill, arguing that it threatens workers' comp system sustainability due to indeterminate but potentially large PTSD costs, , already steep premium increases for local governments tied to existing PTSD presumptions, and warns the state fund and supplemental pension fund are under financial stress. The committee is scheduled to vote on the bill on February 3. Public Safety & Behavioral Health Law Enforcement Facial Covering Restrictions: Senate Bill 5855, sponsored by Sen. Javier Valdez (D-46th LD), and House Bill 2173, sponsored by Rep. Julio Cortes (D-38th LD), prohibit law enforcement officers from wearing facial coverings while interacting with the public in the performance of their duties, while allowing limited exceptions for officers working as undercover operatives. On January 28, the Senate approved the bill on a party -line vote. The bill will now go to the House Chamber for consideration. GTH-GOV 6 Home Cannabis Cultivation: House Bill 2614, sponsored by Rep. Shelley Kloba (D-Kirkland), and Senate Bill 6204, sponsored by Sen. Rebecca Saldana (D-Seattle), legalizes home cultivation of cannabis for adults age 21 and older by authorizing up to six plants per person. Senate Bill 6204 received a public hearing in the Senate Labor & Commerce Committee on January 26. Sen. Saldana shared that the state is an outlier among adult -use states in still criminalizing all non -medical home grow; she views small-scale home cultivation like home beer brewing and backyard gardening. AWC testified in opposition, highlighting the burden on local law enforcement. Officers would have to select which "legal" six plants to leave when seizing excess, adjudicate odor -based complaints about whether plants can be smelled from neighboring property, and respond to increased calls regarding suspected violations, all without LCB enforcement support. The Association for Substance Abuse and Violence Prevention and the Public Health Association also testified in opposition, while several cannabis stakeholders testified in support. Senate Bill 6204 is scheduled for executive session in the Senate Labor & Commerce Committee on February 3. The House version of the bill is not advancing. Excessive Speed Recklessness: Senate Bill 5890, sponsored by Sen. Ron Muzzall (R-10, Oak Harbor), amends the negligent driving in the first degree statute to add excessive speeding as an alternative way to commit the offense and to increase penalties for repeat excessive -speed offenders. A person is guilty of negligent driving in the first degree if they operate a motor vehicle in a negligent manner that endangers or is likely to endanger any person or property and either exhibit the effects of having consumed liquor, cannabis, any drug, or having inhaled or ingested any chemical for its intoxicating or hallucinatory effects, or drive more than 30 miles per hour over the posted speed limit. The Senate Law & Justice Committee held a public hearing on January 26. Washington Traffic Safety Commission testified in support, citing that nearly one-third of Washington traffic fatalities involve speed, that kinetic force and fatality risk rise exponentially at high speeds, and that extreme speed also narrows drivers' field of vision and overwhelms vehicle safety systems, making death or serious injury far more likely. Washington Association of Sheriffs and Police Chiefs testified "Other," to ensure that the new provision doesn't inadvertently imply that reckless driving can only be charged at 30+ mph over, urging clarifying language that speeding 30+ is automatically reckless, but that reckless driving can still be charged at lower excessive speeds. There was no testimony in opposition. An amended version, Substitute Senate Bill 5890, was approved by the Senate Law & Justice Committee on January 29 on an 8-0 vote, with one member making no recommendation. The changes create the offense of first -degree negligent driving for drivers who act negligently and endanger others while driving more than 30 mph over the speed limit. A first offense is a misdemeanor, with repeat offenses are gross misdemeanors. Reducing Cost Through Reform JLARC Lodging Tax Reporting Reduction: Senate Bill 5879, sponsored by Sen. Keith Wagoner (R- 39th LD), and its companion legislation, House Bill 2120, sponsored by Rep. Gerry Pollet (D-46th LID), eliminate the Joint Legislative Audit and Review Committee's (JLARC) biennial reporting to GTH-GOV 7 the Legislature on lodging tax revenues. The sponsor of House Bill 2120 shared that, as the JLARC Chair, he and the 16-member committee reviewed legally required reports and concluded the lodging -tax and training -benefits reviews are redundant or unused, given State Auditor oversight, Employment Security Department reporting, and past repeated findings; eliminating both will save money and free staff for more meaningful new performance audits. House Bill 2120 passed the House 97-0 on January 29 and now awaits consideration in the Senate. The Senate Ways & Means Committee held a public hearing on Senate Bill 5879 on January 19, and is scheduled to vote on the bill on February 3. Transportation/Public Works Electric Bicycle and Electric Motorcycle Regulation: Senate Bill 6110, sponsored by Sen. Sharon Shewmake (D-Bellingham), narrows the definition of electric -assisted bicycles to exclude vehicles capable of exceeding 20 miles per hour on motor power alone and directs the Department of Licensing to convene a work group to recommend a regulatory framework for electric motorcycles by December 15, 2026. Notably, this bill does not include a definition of e- motorcycle. The Senate Transportation Committee held a public hearing on the bill on January 26. City of Kirkland, City of Mercer Island, Association of Washington Cities, Washington Bikes, and many other stakeholders testified in support of the bill due to rising concern about youth operating high-powered electric motorcycles unsafely. There were suggestions to amend the bill statewide to include an e-motorcycle definition, like in House Bill 2374, to avoid a patchwork of local definitions as cities try to respond to the growing safety issues. There was no testimony in opposition. The Senate Transportation Committee voted on January 29 to advance a substitute version of the bill out of committee on a 13-3 vote, with 3 members making no recommendation. The amended bill pushes the deadline out for the DOL report by one year and makes other minor changes, but still does not define electric motorcycles. Sewage Grinder Pump Preemption: Senate Bill 6234, sponsored by Sen. Marko Liias (D- Lynnwood), preempts cities, towns, counties, and water -sewer districts from prohibiting sewage grinder pumps for new residential buildings that rely on low-pressure sewer systems where gravity -based sewer service is not feasible. The Senate Local Government Committee held a public hearing on Senate Bill 6234 on January 26. Sen. Liias, the sponsor on the bill, argued that as urban growth areas run out of easy -to -develop land, grinder pumps are a proven, safe technology that can overcome topographic barriers, allow small infill projects, ADUs, and lower -lying lots to connect to sewer without expensive lift stations, and thus help add needed housing units within existing urban areas while protecting rural resource lands. Toyer Strategic Advisors testified in support of the bill, outlining frequent instances where homes with daylight basements and ADUs lower than the street sewer make gravity sewer impractical or costly, and that a clearer statewide allowance of grinder pumps would give developers and homeowners a feasible, widely used tool that some jurisdictions now restrict or make prohibitively hard to permit. The Association of Washington Cities testified with concerns that the prescriptive language in the bill and state preemption would override locally tailored engineering standards and decision -making, noting some cities already allow grinder pumps GTH-GOV 8 under their own criteria and warning that grinder systems may have higher long-term maintenance costs and potential utility burdens compared with gravity sewers. Washington Association of Water and Sewer Districts testified in opposition, stressing that districts do not categorically ban grinder pumps but need to retain local authority to evaluate them case -by -case against alternatives like deeper mains or lift stations, because numerous dispersed grinder units can increase failure risks, service disruptions, and long-term system costs borne by district ratepayers. The committee is scheduled to vote on the bill on February 2. GTH-GOV 9 Oe City Council Speech — February 3, 2026 Good evening City Council, Mayor Padden, Deputy Mayor Hattenburg, and members of City leadership. I'm looking forward to Mr. Hohman's recap of the City's accomplishments over the past year. I want to thank the Council and staff for your continued leadership in making Spokane Valley one of the best cities to live in in Washington. A few highlights stand out to me. First, our council-manager form of government. The value of professional management, stability, and continuity is clear —especially when compared to strong -mayor systems used in other cities= -Spokane, Seattle, Minneapolis. Second, fiscal discipline. Balanced budgets, a strong economic development team, and healthy reserves that prepare us for future challenges. That is responsible governance. Third, infrastructure. Roads, utilities, and the expectation that contractors restore public surfaces to the condition they were found in. These details matter, and they show pride in our city. Fourth, strategic projects, such as the long-distance track and the ice arena —projects that bring outside dollars into Spokane Valley and help keep our tax burden low. Now I'd like to briefly address the 20-year economic development plan. Cities that did not do this well: Detroit, Stockton and Atlantic City. Calls to keep the city "small" or unchanged ignore economic rea I ity. There is no realistic way to stop people from moving here, but there is a way to plan responsibly. We've seen significant apartment construction to meet housing demand. At the same time, contractors I work with tell me that state fees and regulations now add roughly $50,000 to the cost of building a new home. That makes homeownership harder for working families. As this plan moves forward, I hope it considers a few key questions: • When does the apartment -building cycle peak? • What mix of rental and ownership housing will we need long- term? • And how can the City advocate against state policies that discourage homeownership? Finally, from a market perspective, I'm seeing longer "days on market" for rentals —often two to three weeks. That may signal that supply is beginning to catch up with demand. Thank you for your time, and for your willingness to address these questions as part of the ongoing discussion. ��: , =3� I ��� s. , . � ,,�� •, _ ��L �; _a i� .t..Y�-�`i.,.q. "ram., .. ... � ��, , _ �t-���^� f... .. f �'RS y, Y. l i 3t �.e r