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Home My WebLink About111219 specialCITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL SPECIAL BUSINESS MEETING OF NOVEMBER 12, 2019 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The Port Townsend City Council met in special session on the 12th day of November 2019 in Council Chambers at 540 Water Street. Mayor Deborah Stinson called the meeting to order at 6:31 p.m. ROLL CALL Councilmembers present at roll call were Pamela Adams, David Faber, Robert Gray, Amy Howard, Ariel Speser, and Deborah Stinson with Michelle Sandoval excused. Staff members present were City Manager John Mauro, Finance and Administrative Services Director Nora Mitchell, City Attorney Heidi Greenwood, Development Services Director Lance Bailey, Planning Director Judy Surber, and City Clerk Joanna Sanders. SPECIAL PRESENTATION Jefferson County Five -Year Homeless Housing Plan Vicki Kirkpatrick Public Health Director of Jefferson County Public Health and Lizanne Coker, Facilitator of the Homeless Housing Task Force gave the presentation. The County would be holding a public hearing on Monday, November 18 to adopt the Five Year Plan and then it is to be submitted to the Department of Commerce before December 1. Homeward Bound Cherry Street Update Homeward Bound Vice President of the Board of Trustees Paul Rice introduced other board members Jesse Thomas, Mark Cooper, and Tobi McEnerny as well as their Preconstruction Services Coordinator Heather Dudley Nolette. He gave an informational briefing noting that December 2020 is the construction timeline for completion. They anticipate returning to Council in a month with a better financial projection for bringing the project to completion. The project is not as turnkey as originally thought and is estimated to cost more than the $834,000 projected. Additional project costs are roughly $509,292 bringing the project to $1,306,905.21. The Board is exploring cost-cutting and fundraising options to the $344/per sq. ft. figure. He reviewed the timeline and conceptual site drawing. There may be a forthcoming request to the City to defer payments until 2021 and an offer to provide monthly updates to Council in whatever form proposed. City Council Special Business Meeting November 12, 2019 Page 1 of 5 Responding to a question, Mr. Rice noted the Homeward Bound membership is now about 30 members. PUBLIC HEARING Ordinance 3235 Amending Port Townsend Municipal Code Chapters 3.15, 3.36,13.02A, 13.03 and 20.09 Relating to Low Income Housing Mayor Stinson confirmed Council's desire to reopen public testimony after having closed it at the October 21 meeting. Ms. Howard disclosed that she is a temporary employee of Habitat for Humanity and Ariel Speser disclosed she is a Board Member at Habitat. Planning Director Judy Surber reported on changes to the ordinance since last reviewed. Exhibit A changes were to PTMC 3.15.020(e) Multi -Family Tax Exemption changing 115% to 120% for consistency. Staff revisited the limit in PTMC 3.36.011(f) increasing the cap from $43,000 to $50,000. In reviewing the Development Services Department budget, staff also explained options for using a formula that would meet the goals from Council and stakeholders with minimal administration and impact to the department revenues from the reduced building permit fees. Staff noted the System Development Charges are covered in the rate model. Related to fire permit fees in Exhibit B, PTMC Chapter 3.36.050, fees to recover City expenses East Jefferson Fire Rescue (EJFR) would need to institute a fee resolution. Citizens would then need to request from EJFR a fee deferral for low income housing. City Attorney Heidi Greenwood noted that a new Exhibit B PTMC 3.36.050 was distributed to reflect striking the section on Fire Department permits and inspections. Mayor Stinson closed public testimony. Motion: David Faber moved to approve Ordinance 3235 Amending Port Townsend Municipal Code Chapters 3.15, 3.36, 13.02A, 13.03 and 20.09 Relating to Low Income Housing as amended with new Exhibit B. Robert Gray seconded. Vote: motion carried unanimously, 6-0 by voice vote. The public hearing was closed. Ordinance 3241 Related to Affordable Housing; Amending Chapters 17.16, 17.18 and 19.04 of the Port Townsend Municipal Code, Amending Regulations Related to Daylight Plan, Accessory Dwelling Units, Minimum Ground Floor Clear Ceiling Height, Maximum Number of Dwelling Units Allowed in Any One Structure in the R -II Zoning District and the Thresholds for SEPA Categorical Exemptions Mayor Stinson reviewed the rules of procedure for the public hearing. There were no Council financial or property disclosures in connection with this matter. City Council Special Business Meeting November 12, 2019 Page 2 of 5 Development Services Director Lance Bailey gave the staff report including background on Planning Commission's consideration of amendments. Council passed two interim amendments to remove barriers for Homeward Bound and those interim regulations have now expired. The recommended amendments from the Planning Commission were on hold until the subarea plan was completed. Mr. Bailey reviewed his staff report summarizing discussions by the Planning Commission and Council. He distributed to Council a handout of Accessory Dwelling Unit (ADU) survey results and reiterated that the City does not allow the use of ADUs as short-term rentals. Public Comment: Barbara Morey spoke about concerns of non owner -occupied housing and questioned how eliminating the owner -occupied requirement would increase housing. Lauren Ehnebuske spoke in support of changing the owner occupied regulations. She would like to see more than one ADU allowed. Abbie Little spoke in support of the changes being proposed to increase the housing inventory. Janel Carlson spoke in support of the proposed regulations. Viki Sonntag spoke about affordable housing and encouraging changes to zoning laws to allow tiny houses. Sol Riou spoke in support of providing a tiny house option. Monica MickHager spoke in support of affordable housing actions, Paul Rice spoke in support of allowing both units to be rented and of the SEPA proposed changes to encourage development. Amanda Funaro spoke in support of ADU changes and also encouraging officials to explore rental laws for landlord and tenant protections. Teri Smith spoke in support of renting both the house and ADU. Rick Jahnke spoke about the City of Seattle increasing the threshold limits for SEPA. Viki Sonntag expressed concern about how the City would guarantee the rentals remain affordable. Mr. Bailey responded about rental affordability and other jurisdictions removing the residency requirement. He recognized that a variety of housing options are needed. Council questions to which Mr. Bailey responded related to notification thresholds for developments (critical area permits, those requiring design review, and projects City Council Special Business Meeting November 12, 2019 Page 3 of 5 requiring a conditional use) and protections for landlords and tenants under the state landlord tenant law. Council paused to confirm that comments on proposed zoning changes related to increasing the density for tiny homes should be addressed outside of the public hearing on this ordinance. Staff confirmed any proposed changes to that part of the code should be brought forward separately. Mayor Stinson closed public testimony. Motion: David Faber moved to approve first reading of Ordinance 3241 Related to Affordable Housing; Amending Chapters 17.16, 17.18 and 19.04 of the Port Townsend Municipal Code, Amending Regulations Related to Daylight Plan, Accessory Dwelling Units, Minimum Ground Floor Clear Ceiling Height, Maximum Number of Dwelling Units Allowed in Any One Structure in the R-11 Zoning District and the Thresholds for SEPA Categorical Exemptions (with amendments to Exhibit D so that the "office, school, commercial, recreational, service or storage buildings and parking facility project type be set at the other incorporated areas threshold rather than the state maximum). Pamela Adams seconded. Vote: motion carried unanimously, 6-0 by voice vote. Mayor Stinson closed the public hearing. NEW BUSINESS Resolution 19-087 Declaring the Intent of the Port Townsend City Council to Adopt Legislation to Authorize a Sales and Use Tax for Affordable and Supportive Housing in Accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019), and Other Matters Related Thereto Finance and Administrative Services Director Nora Mitchell gave the briefing on the tax credit to be earmarked for affordable housing. An ordinance would be brought back to Council in January once Jefferson County passes the same. Ms. Greenwood explained the qualifying tax of 1.46% (split between the City and County). Public comment: Deborah Peterson spoke in support of the resolution. Liz Coker spoke in support of the resolution. Motion. David Faber moved to approve Resolution 19-087 Declaring the Intent of the Port Townsend City Council to Adopt Legislation to Authorize a Sales and Use Tax for Affordable and Supportive Housing in Accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019), and Other Matters Related Thereto. Ariel Speser seconded. Vote: motion carried unanimously, 6-0 by voice vote. City Council Special Business Meeting November 12, 2019 Page 4 of 5 EXECUTIVE SESSION: PURSUANT TO RCW 42.30.11 0(l)(1) CURRENT OR POTENTIAL LITIGATION At 9:09 p.m., the Council went into Executive session 20 minutes with no action to follow. At 9:30 p.m., the Council came back into open session. ADJOURN There being no further business, the meeting adjourned at 9:33 p.m. Attest: Joanna Sanders, MMC City Clerk City Council Special Business Meeting November 12, 2019 Page 5 of 5