Spokane Valley City Council Regular Meeting - January 20, 2026

The Spokane Valley City Council met on Tuesday, January 20, 2026, at 6:00 p.m. at City Hall. The meeting opened with an invocation and Pledge of Allegiance, followed by approval of the agenda, a Community Risk Reduction Week proclamation, six action items, two non-action administrative reports, two public comment periods, and council/city manager comments. Votes were unanimous on the franchise ordinance and commute trip reduction agreement; three grant motions passed 5-1 with Councilmember Merkel dissenting.

Proclamation

• The council proclaimed the week of January 19-26, 2026 as Community Risk Reduction Week. The proclamation noted an estimated $23.2 billion in national property damage from fires in 2023, continued wildland-urban interface losses, and that medical calls exceed 80% of total fire service call volume in some jurisdictions. A fire service representative thanked the council for dedicating the week.

Public Comments & Testimony

• First general public comment: No speakers signed up or appeared.
• During the BUILD grant item: John Harding of Spokane Valley opposed the Sullivan Interchange project, arguing the bridge is not severely compromised, the city would still spend $8-10 million, traffic impacts at two locations would remain, and economic impacts of long construction were unknown. Another speaker thanked the engineering staff and urged the council to trust professional recommendations.
• Second general public comment:
  • A mobile business owner thanked the council for the cryptocurrency presentation and asked how kiosks would be identified and removed, and worried scammers could move to mobile cryptocurrency acceptance. He also asked for an update on the old Ziggy's building and nearby shelter concerns.
  • John Harding described his wife's experience with behavioral health and criminal justice systems, stating people with behavioral health issues are being let down and that the council should separate criminality from mental health needs.
  • Joseph Godsey of Spokane Valley supported a ban on cryptocurrency kiosks but urged a regional approach to avoid pushing victims elsewhere; he suggested a consumer protection screen requiring users to type the word 'scam' before depositing money.

Discussion Items

• Ordinance 26-001 (First Read) – Forge Fiber 37 Franchise: City Attorney Tony Beattie presented a 10-year non-exclusive telecommunications franchise for Forge Fiber 37, an AT&T subsidiary acquiring Lumen facilities. The performance bond was increased from $25,000 to $100,000, and franchise-fee language was added. Councilmember Kelly asked about warranty periods; Councilmember Merkel appreciated the bond increase and asked for warranty requirements to be reviewed in the proper forum. The council unanimously advanced the ordinance to second reading.
• AWC CQC Application: Deputy City Manager Eric Lamb said the AWC annually seeks civic-minded student applicants. After one timely application and one late application, a committee recommended Chloe Nelson as the city's applicant and a general letter of recommendation for Gavin Ahamuda. Councilmembers Haley and Yeager praised both students. Councilmember Merkel asked for a longer application window next cycle. The motion passed unanimously.
• BUILD Grant – Sullivan Interchange: Engineering Manager Adam Jackson requested authorization to apply for a $24,959,696 BUILD grant for the Sullivan Interchange Project. Deputy Mayor Hattenberg supported it, citing trucking industry and public safety needs. Councilmember Merkel questioned the need and timing and voted no. Councilmember Kelly suggested holding community conversations to answer public concerns. City Manager Holman said the project had been discussed for 4-5 years and is badly needed. The motion passed 5-1.
• FMSIB Grant Application: Jackson presented a multi-project application to FMSIB for the Sullivan and Trent, Barker I-90, and Argonne I-90 interchange projects. He explained the requests were structured to leverage state funding, including $8 million for Sullivan and Trent to satisfy BUILD non-federal match and phased funding for Barker and Argonne. Councilmember Merkel voted no for the same reasons. The motion passed 5-1.
• NHFP Grant Application: Jackson said the state NHFP program provides $11 million per year for five years and recommended applying for $3 million for Sullivan and Trent and $2 million for Barker I-90 through SRTC. Councilmember Merkel voted no. The motion passed 5-1.
• Commute Trip Reduction Interlocal Agreement: Jackson presented a 2025-2027 interlocal agreement with Spokane County for CTR services. The city would pass through about $117,000 in state funds to the county, covering 17 of 93 countywide agencies. Councilmember Merkel asked for more performance metrics in future agreements; Councilmember Kelly said he was glad another agency administers the program. The motion passed unanimously.
• Cryptocurrency Kiosk Discussion (Admin Report): Police Chief Ellis, City Attorney Kelly Conqueror, and Sergeant Pat Bloomer presented information about cryptocurrency fraud. Bloomer cited national losses of $1.6 billion in 2024, over 30,000 cash-to-crypto ATMs, and numerous local victims, including an 83-year-old who lost $25,000, a victim who lost $300,000 and died by suicide, and a family that lost $13,000 in a fake son-in-custody scam. He said local investigators wrote 131 search warrants, frequently recover more than $1 million annually, and had already recovered $194,758 and frozen $130,500 in January 2026. City Attorney Conqueror outlined regulatory options: class one civil infraction ($250 fine), misdemeanor (90 days/$1,000), gross misdemeanor (364 days/$5,000), plus business license revocation. Councilmembers discussed definitions, legitimate uses, and avoiding overbreadth. Council agreed to direct staff to return with draft code options.
• Safe and Healthy Spokane Task Force Update: Deputy City Manager Lamb reported on the January 8 task force meeting. The asset assessment identified overburdened crisis response, fragmented 911/988 coordination, insufficient re-entry services, housing gaps, workforce shortages, and fragmented data. Four subcommittees were formed. Lamb expressed concern that the timeline (subcommittee recommendations by April 1 and final recommendations by May 1) was very aggressive. Councilmembers discussed the need for a new jail, mental health facilities, and concerns about local control. Mayor Padden and councilmembers also discussed the potential for a future public safety sales tax ballot measure; City Manager Holman noted the county jail is 40+ years old and requires significant investment.
• Legislative Update: Virginia Clough, Eric Lamb, and Chief Ellis reviewed pending bills.
  • SB 6002 (ALPR/automated license plate readers): Chief Ellis opposed most provisions, including removal of NCIC alerts, limiting to felonies, 72-hour data retention, warrant requirements, and restrictions on sharing with out-of-state agencies. He supported exemptions from public records and public awareness requirements. Councilmembers Hattenberg and Yeager supported comments; Merkel initially favored a formal 'con.' City Manager Holman suggested selecting 'other' with comments to preserve lobbying ability. Council consensus was to submit comments as 'other' with strong opposition.
  • Sheriff qualification/removal bills (SB 5974/HB 1399): Ellis opposed requirements for sheriff background checks and removal by an unelected commission, and said the bills would hinder volunteer/limited commission officers. Councilmembers Yeager, Kelly, and Merkel opposed the bills. The city had already submitted opposition on SB 5974.
  • E-bike bills: Ellis said the bills would clarify regulation of high-speed electric bikes/scooters. Deputy Mayor Hattenberg supported, citing trail safety concerns.
  • Short-term rental tax: A 6% tax on booking platforms would go to a state affordable housing fund. Multiple councilmembers opposed the tax; consensus was to oppose.
  • Shelter preemption bills (HB 2266/SB 6069): Staff warned the bills would eliminate local siting, spacing, operational requirements, and notifications for shelters and supportive housing in all non-industrial zones. Councilmember Wick testified in opposition in Olympia. Council opposed the bills.
  • Homeless bill of rights (HB 2489): Staff said the bill would bar enforcement of public camping laws unless adequate shelter was available; testimony was submitted opposing it.
  • Keeping Families Together Act amendment (HB 1092): Virginia Clough and Councilmember Haley supported the amendment adding 'serious harm' language and drug-use provisions. Haley stated child deaths increased 200% under the current law and shared a personal story. Councilmember Merkel also supported the amendment.

Council Comments

• Councilmember Kelly thanked colleagues and requested more discussion opportunities.
• Councilmember Merkel criticized the STA bus purchase and expressed a personal vision prioritizing public safety, taxpayer accountability, practical economic development, balanced growth, and ending homelessness through enforcement.
• Councilmember Haley defended the double-decker bus purchase, citing Cheney route demands and noting the cost is consistent with standard buses.
• Councilmember Yeager said he would be in Olympia next week and encouraged public engagement through groups like Conservative Ladies of Washington.
• Deputy Mayor Hattenberg noted the state's business climate is challenging but highlighted local economic development successes.

Key Outcomes

• Approved agenda and advanced Ordinance 26-001 to second reading unanimously.
• Selected Chloe Nelson as AWC applicant and approved a letter for Gavin Ahamuda unanimously.
• Authorized BUILD, FMSIB, and NHFP grant applications, with votes of 5-1 each; Councilmember Merkel opposed all three.
• Approved the Commute Trip Reduction ILA unanimously.
• Directed staff to return with cryptocurrency kiosk code options.
• Provided direction on legislative positions: oppose ALPR restrictions (with 'other' comments), oppose sheriff bills, support e-bike clarification, oppose short-term rental tax and shelter preemption bills, oppose homeless bill of rights, and support HB 1092 amendment.
• City Manager announced next week's meeting will be an extended executive session on potential real estate acquisition.

The meeting adjourned.