Spokane Valley City Council Regular Meeting - July 28, 2026

The Spokane Valley City Council held its regular meeting on Tuesday, July 28, 2026, at 6:00 PM at City Hall. The meeting included public comment, approval of a road preservation project bid, renewal of the Urban County Consortium participation agreement, and council member motions on future agenda items. Key decisions included awarding the Sullivan Road Preservation Phase 1 contract to Inland Asphalt Company and authorizing the city manager to execute the cooperation agreement for CDBG and related funds.

Consent Calendar

• Approved the consent agenda, including claim vouchers totaling $2,137,212.38, payroll for the period ending July 15, 2026 ($794,840.06), and council meeting minutes from May 12, 19, 26, and June 16, 2026.

Public Comments & Testimony

• Ben Lund (longtime Spokane Valley resident and business owner) expressed support for the city’s fiscal responsibility and economic development (balanced budgets, cross-track Ice Arena investments) but raised concerns about leadership challenges related to the Public Records Act. He stated these issues have already cost taxpayers approximately $500,000, with additional costs occurring. He urged the council to protect public trust through transparency, accountability, and faithful adherence to the law.

Discussion Items

• Sullivan Road Preservation (UPRR to Kiernan) Project Bid Award – Engineering Manager Rob Lochmiller presented the bid award recommendation. The project replaces deteriorating pavement from the Union Pacific Railroad Bridge to Kiernan Avenue, includes ADA upgrades and bridge deck/joint rehabilitation, and has a $1.5 million federal grant (no match). Bids were opened July 22; the lowest responsive and responsible bidder was Inland Asphalt Company at $2,568,767.50, approximately 12% (about $280,000) over the engineer’s estimate. Staff recommended increasing the project budget by $300,000 to maintain a 10% contingency. Council members discussed the single bid, cost increases (attributed to stormwater work and bridge joints), and the timing of construction (35 working days, starting August 17, completed by mid-October). Councilmember Merkel expressed concern over the single bid exceeding estimates but acknowledged the pavement’s poor condition (PCI rating 56–58). Councilmember Wick and others supported moving forward to avoid further deterioration and pothole costs. The motion passed unanimously.
• Urban County Consortium – Requalification Process – City Service Administrator Gloria Mantz explained the city’s entitlement to federal CDBG and HOME grants. Every three years, HUD requires requalification; the city has participated in the Spokane County consortium since 2005. In June 2026, council reached consensus to continue, and the next step is executing an agreement with the county (due by first week of August). The agreement mirrors the previous one, minus language about a regional homeless entity (since that entity was not formed). Benefits include the county assuming all administrative costs (which HUD caps at 10% but actual costs exceed that), avoiding an estimated $150,000 startup and about $86,000 annual general fund subsidy if the city administered alone. The city has four representatives on the HCDAC advisory board. Councilmember Merkel questioned the absence of performance monitoring requirements for sub-recipients; city manager Holman noted that performance is addressed in separate subcontracts with the county. Councilmember Kelly clarified the county would not be harmed if the city withdrew. Gloria Mantz noted that approximately $156,000 in ESG funds could be lost to the region if the city left the consortium. After public comment from Ben Lund (who drew comparisons to difficulties with the sheriff’s contract), council members expressed support, citing the strong board presence and cost savings. The motion passed unanimously.
• Advance Agenda – Two items were raised:
  1. Councilmember Wick requested a future discussion on the potential closure of the Geiger facility by Spokane County (which houses misdemeanor-level offenders), noting the impact on local law enforcement responsibilities. Council agreed to add this to a future agenda.
  2. Councilmember Yeager moved to “direct the city attorney to evaluate all lawful options available to recover taxpayer funds expended as a result of litigation involving councilmember Merkel and provide recommendations regarding any legal or policy changes necessary to protect taxpayers from similar financial losses in the future.” After discussion (Councilmember Kelly raised concerns about punitive actions but acknowledged the need for a high bar), a show of hands resulted in 5–2 approval.

Key Outcomes

• Approved the Sullivan Road Preservation Phase 1 bid award to Inland Asphalt Company for $2,568,767.50, with a $300,000 budget increase (total project budget now $3.3 million) and authorization for the city manager to execute the contract.
• Approved authorizing the city manager to execute the cooperation agreement with Spokane County for CDBG and related funds, continuing the Urban County Consortium participation.
• Approved (5–2) directing the city attorney to evaluate options to recover taxpayer funds from litigation involving Councilmember Merkel and to recommend policy changes.
• Scheduled a future council discussion on the potential Geiger facility closure.
• No meeting next week (August 4) due to National Night Out events; council members encouraged community participation.