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HomeMy WebLinkAbout050817CITY OF PORT TOWNSEND MINUTES OF THE SPECIAL BUSINESS MEETING OF MAY 8, 2017 CALL TO ORDER/PLEDGE OF ALLEGIANCE The Port Townsend City Council met in special session on the 8th day of May 2017 in the Council Chambers at 540 Water Street. Mayor Deborah Stinson called the meeting to order at 6:32 p.m. ROLL CALL Councilmembers present at roll call were Pamela Adams, David Faber, Amy Howard, Robert Gray, Catharine Robinson, and Deborah Stinson with Michelle Sandoval excused. Staff members present were City Manager David Timmons, City Attorney Steve Gross, Planning Director Lance Bailey, Public Works Director Ken Clow, Senior Planner/Planning Manager Judy Surber, and City Clerk Joanna Sanders. SPECIAL PRESENTATION — WATER SAFETY MONTH PROCLAMATION (JEFFCO AQUATIC COALITION) Mary Bogdan and Jean Baldwin of the Jefferson Aquatic Coalition accepted the proclamation and gave an activity update on scholarship donations toward swim lessons. PUBLIC HEARING Ordinance 3173 Related to Floodplain Regulation; Updating Floodplain Regulations and Adopting Certain Amendments to the Narrative Text and Tables of Chapter 16.08 (Flood Damage Prevention) and Chapter 20.01 (Land Development Administrative Procedures) of the Port Townsend Municipal Code Mayor Stinson read the rules of procedure for the public hearing. There were no Councilmember financial or property issues to disclose in connection with this matter. Senior Planner/Planning Manager Judy Surber gave the staff presentation explaining the public process and background leading up to the public hearing to adopt the amendments required to meet National Flood Insurance Program criteria. She summarized comments from the Port of Port Townsend with concern about the inclusion in the definition of "development," the storage of equipment and materials. They also felt the requirement for habitat assessments were overreaching. City staff agreed the regulations are City Council Special Business Meeting of May 8, 2017 Page 1 of 5 overreaching. In the future, the City might consider another options to moving forward on a case by case basis. The other options are to adopt the model ordinance or demonstrate that your regulations comply with the Endangered Species Act. If development were proposed in the flood hazard area and the property is not exempt, a habitat assessment is required to demonstrate no impacts. Ms. Surber responded to questions about situations requiring a flood development permit. There being no comment, the Mayor closed public comment and the public hearing. Motion: Catharine Robinson moved to approve first reading of Ordinance 3173 Related to Floodplain Regulation; Updating Floodplain Regulations and Adopting Certain Amendments to the Narrative Text and Tables of Chapter 16.08 (Flood Damage Prevention) and Chapter 20.01 (Land Development Administrative Procedures) of the Port Townsend Municipal Code with a change on Exhibit A, Page 10 in Section 16.08.120(A), specifying that a floodplain development permit would be a Type I -A permit. Pamela Adams seconded. Vote: motion carried unanimously, 6-0 by voice vote. Ordinance 3172 Related to Short Term Rental of Property; Establishing Land Use Development Regulations; Establishing Business Tax and License Regulations; Establishing Initial and Ongoing Application Processes; Amending Lodging Tax Requirements, Amending Titles 3, 5 and 17 of the Port Townsend Municipal Code Mayor Stinson read the rules of procedure for the public hearing. No Councilmembers had any financial or property interests to disclose in connection with this matter. Development Services Director Lance Bailey gave the staff presentation. As detailed in the staff report, he reviewed the history, background, Planning Commission recommendations, Council questions and issues on this topic, resulting in staffs recommendation. Public Comment: Barbara Morey urged using a license preference means test (to those paying more than 30% of their income toward housing) and using the term "lodging housing" versus "boarding houses" in the definitions. Peter Quinn suggested simplifying the ordinance by requiring owner occupancy, tourist home insurance, yearly health and safety inspection, and an annual fee. City Council Special Business Meeting of May 8, 2017 Page 2 of 5 Richard Berg urged allowing exceptions for short-term rental for situations where a homeowner wants to house their family during visits but rent to visitors at other times throughout the year. Monica Bell spoke in support of a clear process, increasing the annual fee, and including the business license number on the county assessor website for neighbors inquiring about the legitimacy of the accommodation. Mr. Bailey responded to public comment that boarding and lodging house are defined in the code and are based on the number of lodgers allowed (boarding up to six and lodging is for seven or more). In addressing Council questions, he noted that the City does not want to do anything that negatively impacts housing stock. The Comprehensive Plan references preserving accessory dwelling units (ADUs) for long-term rentals. Mr. Timmons expressed interest in exploring a tax credit incentive for housing provider/property managers who provide affordable ADUs. Other questions addressed by Mr. Bailey related to the following: citizen complaints, grandfathered tourist homes (land use and business licensing), the enhanced penalty reference, options for requiring insurance and safety inspections, code enforcement options and cost recovery, recommendations for capping the number per block, and the challenges in regulating entrances. Public comments to clarify anything in response to statements by Council. Barbara Morey suggested clarifying that lodging houses should be removed from short-term rentals. The Mayor then closed public testimony. Only written comment would be allowed at second reading. During deliberations, there were comments and discussion of entering through the primary residence, incentives for long-term rentals or lodging houses, enforcement, inventory of long-term rentals, prioritizing tourism over economic development, whether requirements for kitchen modifications encourage long-term rentals, fee increase to $50, suggested ordinance amendments, and options for publishing a list of short-term rentals. Motion: Catharine Robinson moved to approve first reading of Ordinance 3172 Related to Short Term Rental of Property; Establishing Land Use Development Regulations; Establishing Business Tax and License Regulations; Establishing Initial and Ongoing Application Processes; Amending Lodging Tax Requirements, Amending Titles 3, 5 and 17 of the Port Townsend Municipal Code (with the following amendments). Pamela Adams seconded. Vote: motion carried unanimously, 6-0 by voice vote. City Council Special Business Meeting of May 8, 2017 Page 3 of 5 Motion: David Faber moved to approve amending the definition of tourist homes (Exhibit D, page 2 of 2) "which share a common entry to the building that are rented to transient guestsk ' nsieW mss. " (mirroring that of a hotel definition in PTMC Zoning Chapter 17.08) Catharine Robinson seconded. Vote. motion carried, 5-1 by voice vote, Robert Gray opposed. Motion: David Faber moved to approve amending PTMC 5.45.030(D) to add "and listings" to the end of that sentence. Catharine Robinson seconded. Vote: motion carried unanimously, 6-0 by voice vote. Motion: David Faber moved to approve amending Exhibit E, PTMC 17.57.010 Purpose and Intent, to read "Maintenance of the city's existing residential neighborhoods is essential to its o strenq communit resiliency. The motion failed for lack of a second. Motion: David Faber moved to approve amending page 3 of 3, Exhibit E, PTMC 17.57.020(8)(8) to read "Kitchens, as defined in PTMC 17.08.040 are not allowed in rental units. Pamela Adams seconded. Vote: motion carried, 5-1 by voice vote, Robert Gray opposed. At 8:45 p.m. the meeting recessed for nine minutes. At 8:54 p.m., the meeting resumed, Resolution 17-021 Related to Affordable Housing at the City's Cherry Street Properties; Declaring Property to be Surplus to the City's Needs and Authorizing the City Manager to Dispose of the Property Mayor read the rules of procedure for the public hearing. There were no financial or property interests to disclose by Council. City Manager David Timmons gave background on the need and the identification of this particular property for affordable housing. While working with providers on a housing trust model, the housing opportunity came forward from Joe Johnson. Mark Blatter was also instrumental in helping with the financing package. The property would be deeded to Homeward Bound through a bridge loan. If the City needs to assign it to another partner, that could also be accomplished. The following individuals spoke in support of the resolution: Penny Westerfield, President of the congregation of Grace Lutheran Church.. Pete Von Christierson, member of Homeward Bound. Brian Kuh of EDC/Team Jefferson. City Council Special Business Meeting of May 8, 2017 Page 4 of 5 Teresa Verraes, Director of the Chamber of Commerce. Monica Bell. Joe Johnson. Mark Blatter of Homeward Bound. Jamie Maciejewski of Habitat for Humanity.. Staff responded to Council questions about the size of the lot, whether boundary line adjustments were needed, and the details of the property exchange, including the City loan. There was shared concern over rental rates in the community. Mr. Timmons agreed to bring back financial options for Homeward Bound to repay the loan and finish the project. The Mayor closed the public hearing. Motion. Catharine Robinson moved to approve Resolution 17-021 Related to Affordable Housing at the City's Cherry Street Properties; Declaring Property to be Surplus to the City's Needs and Authorizing the City Manager to Dispose of the Property. David Faber seconded. Vote: motion carried unanimously, 6-0 by voice vote. ADJOURN There being no further business, the meeting adjourned at 9:58 p.m. Attest: Joanna Sanders, CMC City Clerk City Council Special Business Meeting of May 8, 2017 Page 5 of 5