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HomeMy WebLinkAbout98-047Resolution No. 98- O ~r] RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND APPROVING A FIVE-YEAR LEASE TO RENT SPACE IN THE REDEVELOPED WATERMAN-KATZ BUILDING AND AUTHORIZING THE MAYOR TO SIGN THE LEASE ON BEHALF OF THE CITY OF PORT TOWNSEND The City Council of the City of Port Townsend, Washington, makes the following Findings and Recitals in support of this Resolution: I. FINDINGS AND RECITALS 1. At the Port Townsend City Council's 1991 Retreat, the Council identified as a priority of the City of Port Townsend, the need to resolve City work space needs, including particularly, the administrative office space needs of the Public Works and Planning and Building (now BCD) departments; and 2. Resolution of office space needs was again identified as a top City priority at the 1996 City Council Retreat. At the January 1996 Retreat, the Council reviewed an "Office Space Study" and directed the Council's Parks, Recreation and Properties Committee to work actively on interim and long-term solutions, and reaffirmed the Council's intent that City offices remain downtown. At the June 26, 1996 Retreat, the City Council identified as a "major priority" the consolidation of administrative office space to better serve the public; and 3. At its January 24, 1997 City Council Retreat, the Council identified as a high priority project, the resolution of interim and long-term City administrative office space needs, directing staff and the Council to resolve the problem during the 1997 calendar year, and 4. At its January 14, 1998 Retreat, the City Council unanimously approved a motion to honor and work toward completing all previously identified Council priorities; and 5. The City of Port Townsend currently owns and rents administrative office space scattered throughout the city, creating substantial inefficiencies in service to the public; and 6. In the 1997 City Budget, the Port Townsend City Council set a budget priority of creating "one-stop shop" permit review for land development applications, whereby the City Building and Community Development and Public Works departments would be better coordinated and housed in one location, providing the most efficient service to the public; and 7. In the 1998 City Budget, the City Council approved departmental budgets which implemented the priorities of the City Council, identified since 1991, to resolve City's office space needs on an interim basis, through the occupancy of leased office space in the Waterman-Katz Building; and 8. The Port Townsend City Council has chosen to phase out and substantially eliminate contracts for outside engineering services, and create an Engineering Division of the Public Works Department, with the goal of providing more efficient and cost-effective service to the public; and 9. Prior to execution of the Lease for space in the Waterman-Katz Building, the City of Port Townsend has owned and/or leased the following administrative office space: (1) (2) (3) (4) (5) (6) (7) City Administrative Offices (Mayor, Building & Community Development, City Clerk, Finance Director, and Utility Billing) housed within City Hall; City Attorney and City Administrator, housed within the Bartlett Building, 823 Water Street (leased space); The Department of Public Works administrative offices, housed at 5210 Kuhn Street; City Water Quality Division, housed in the Good Templars Building, 280 Quincy Street (leased space); The City Shops, Water Department, Street, Sewer, Storm, and Equipment Rental offices at 1818 Beech Street; The Port Townsend Engineering Division, housed in the Uptown District, at 617 Tyler Street (leased space). The City maintains other administrative and shop facilities, including police, fire and library, located throughout the city; and 10. The 1996 Port Townsend Comprehensive Plan Facilities and Utilities Element, drafted prior to creation of the City Engineering Division, prior to location of the City Administrator in the Bartlett Building, and prior to loss of Water Quality Division office space in the public school building (necessitating additional rented space), stated the following: Currently, most City Hall offices designed for one employee are being used by at least two employees, and three employees work out of leased office space in another location. Space for record storage, public information, and meeting rooms is insufficient for current needs. The configuration of the building considerably decreases useable space as well; approximately 2,200 of the 3,600 square feet are actually available for use as City office space. Because City administrative employees are housed in widely separate locations, communication between departments is less efficient and cost-effective, and citizens most often travel from one location to another to conduct business with the City; and 2 } es. 98- 0 qq 11. The Comprehensive Plan set a minimum acceptable level of service (LOS) standard at 695 square feet per 1,000 population (nearly one-half the level of service of comparable cities, based upon a study of comparable cities). However, since the drafting the Capital Facilities and Utilities Element, City office space needs have increased substantially (with currently leased space exceeding the minimum LOS standard), the deleterious effects of cramped and scattered office spaces have more sharply come to light, and the City Council has become acutely aware of a growing inability to provide adequate service to the public with the current administrative office space configuration; and 12. The level of service standards adopted in the Comprehensive Plan are minimum acceptable levels. The adoption of minimum level of service standards for a particular public service or facility does not mean that the service or facility must remain at a minimum LOS, despite the availability of solutions which improve the public service, facility and amenity; and 13. The Capital Facilities and Utilities Element generally anticipates the need to allocate revenues for the acquisition and construction of publicly-owned facilities between competing needs. Publicly owned administrative office space has proven inadequate and inefficient, and the City faces an inevitable demand to rent or acquire additional space in the future. At present, publicly owned space is inadequate, even to accommodate public meeting needs; and 14. Over the past several years, the City has studied numerous options for the consolidation of City offices and improvements of public service. The City Council has reviewed and rejected several options to resolve the growing public service needs of Port Townsend residents. Currently, the Port Townsend City Council has temporarily relocated public meeting space to the Port Townsend/Jefferson County Community Center (rented space), with the City Council chambers temporarily converted to administrative office space; and 15. In 1997, Ballenas Property Management, Ltd. approached the City with a proposal to provide the City with administrative office space in the renovated Waterman-Katz Building. The Waterman-Katz Building space provides an opportunity for the City to terminate all leases of City office space currently scattered throughout the city, and consolidate administrative office space within City Hall and the Waterman-Katz Building. The close proximity of the Waterman-Katz Building to City Hall should greatly enhance the City's efficiency and improve the City's ability to serve the public; and 16. The Waterman-Katz redevelopment proposal and lease enables combination of the City's administrative offices with offices and classrooms for Peninsula College within the renovated building, allowing the City and Peninsula College to maximize space and efficiency through joint use of several rooms and common areas within the building; and Rcs. 17. The Economic Development Element of the Comprehensive Plan anticipates the City's active involvement and partnership with public education institutions to create opportunities to enhance educational opportunities in Port Townsend as a key strategy of promoting the economic development of Port Townsend. The Plan envisions the City eventually purchasing and leasing land for a "training/education campus.' The Plan sets forth numerous implementation policies for the City to promote the location and development of college-level education facilities in the City, including: 1. Promote vocational training and educational opportunities which strengthen and increase the skills available in the worlfforce. 13. Work with Main Street, the Chamber of Commerce, EDC, and other local entities to ensure that informational and recruitment publications emphasize Port Townsend as the "City that supports culture and education on the Olympic Peninsula." See, Comprehensive Plan Economic Development Element, pages VIII-10 through VIII-11; and 18. The economic development and revitalization of Port Townsend's historic downtown have long been central policy objectives of the City Council. These policy objectives are embodied in the Comprehensive Plan's Land Use Element, which establishes important policies for the preservation of Port Townsend's historic structures. These include the following: Goal 15: Policy 15.2: To preserve historic and cultural resources to retain our connection to the past, enhance community values, and leave a historical legacy for future generations. Encourage the retention of significant historic and cultural resources which foster community identity and pride. 15.2.2 Develop incentives that promote the adaptive reuse and preservation of historic buildings .... 15.2.3 Work with downtown property owners to seek grant funding to rehabilitate and seismically retrofit historically significant structures. 15.2.4 Promote commercial historic district revitalization strategies that recognize and capitalize on the historic traditions of Port Townsend. See, Comprehensive Plan Land Use Element, pages IV-31 through IV-32; and 4 Res. 98- O c/r7 19. The goals and policies in the Comprehensive Plan are the outcome of a public process beginning in 1992 with the adoption of the County-Wide Planning Policies. The community values represented in the Plan were derived from over 1,400 hours of citizen discussions occurring in Ueoffee hours" held in living rooms throughout the community. This process (the ?T 2020 Process") led to the City's citizens preparing a ~Community Direction Statement," which constitutes the organic guiding document of the Comprehensive Plan. The Plan itself was developed through over 50 publicly advertized citizen work group meetings and 31 legislative workshops, meetings and hearings; and 20. The Council finds that the City's participation in the redevelopment and lease of the Waterman-Katz Building advances important City and community policy objectives, falls squarely within the direction of the Comprehensive Plan to promote downtown historic preservation, education and historic revitalization, and provides the City with a unique opportunity to address pressing needs for improved public service while promoting the historic preservation and economic development of Port Townsend in a concrete, meaningful and positive way; and 21. At the April 21, 1997 City Council meeting, the City Council directed City staff to explore the proposal for City administrative office use of the renovated Waterman-Katz building, and to negotiate with Ballenas to advance that goal; and 22. In May-June, 1997 Ballenas requested that the City provide it with a "commitment letter" to express the City's commitment to rent the space upon completion of the planned renovation work. A "commitment letter" was necessary for Ballenas to proceed with building acquisition and procure all necessary financing to complete the renovation project. The Council approved the Commitment Letter by Resolution No. 97-78, as amended by Resolution No. 97-109; and 23. In accordance with RCW 35A. 11.020, the City Council possesses the exclusive authority to acquire and lease space needed for conducting municipal business. The Council declares that leasing space in the Waterman-Katz Building in accordance with the attached Lease implements legislative policy goals and priorities identified since 1991, is the outcome of substantial study, deliberation, and public process spanning many years, and clearly advances the public interest; and 24. The City Council's Finance Committee met in a public meeting on March 27, 1998 and reviewed the proposed Lease. The Finance Committee unanimously recommends that the full Council approve the Lease in substantially the form attached hereto, NOW, THEREFORE, BASED IJI~N THE ABOVE FINDINGS AND RECITALS, BE IT RF_~OLVED, by the City Council for the City of Port Townsend as follows: H. RESOLUTION The Port Townsend City Council approves the attached Lease and authorizes and directs the Mayor to sign the Lease between the City and Ballenas, Inc., in substantially the form attached hereto, for the location of City administrative office space within the renovated Waterman-Katz Building. ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor on this day of April, 1998. Attest: Pam Kolacy, City Clerk ~cCullo , y Timoth~L/l~cM~han, City Attorney 03/31/98 [97-25] CA§Res(WICLease.res) 6 Res. 98- 047