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Home My WebLink About081825 City Council Business Meeting Packet PORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. August 18, 2025 Attend in person or virtually via computer or tablet at https://zoom.us/j/98187633367 enter the Webinar ID 98187633367 Phone only (muted - listen-only mode) United States: Local Dial In – 1(253)215- 8782,,98187633367# Submit public comment to be included in the meeting record to: https://publiccomment.fillout.com/cityofpt If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clerksupport@cityofpt.us I.Call to Order II.Roll Call III.Changes to the Agenda IV.Proclamation(s) or Special Presentation(s) (None) A. Oath of Office- Police Officer V. City Manager’s Report VI. Comments from the Public (re consent agenda items and items not on the agenda) (Each person has 3 min. to comment- City Clerk will signal at 2 min. 30 sec.) A. Public comment B. Staff or Council response, as needed VII. Consent Agenda Action: Move to adopt the consent agenda and/or request to remove any individual item from the consent agenda. A. Approval of Bills, Claims and Warrants B. Approval of Minutes: May 22, 2025, July 7, 2025 C. Staff Appointments to External Boards and Committees D. 2025 Second Quarter Financial Update VIII. Public Hearing A. Resolution 25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City’s Water Use Efficiency Program Proposed Action: Move to approve Resolution 25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City’s Water Use Efficiency Program i. Staff Presentation ii. Comments from members of the public iii. Response from staff iv. Questions from Council members v. Clarifying comments from the public, if necessary vi. Council deliberation and action IX. Old Business (None) X. New Business A. Evans Vista: A Vision for Sustainable Community Housing Proposed Action: Move to endorse staff pursuing additional grant funding in support of the Evans Vista Neighborhood Master Development i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action B. Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 Proposed Action: Move to approve first reading of Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action XI. Presiding Officer’s Report XII. Suggestions for Future Agendas XIII. Comments from Council XIV. Adjourn . 2025 August d ability, truly, day of th 18 Police Officer in and for the City OATH OF OFFICE Darian Hall Thomas Olson, Chief of Police __________________________________ ____________________________________ ed and sworn to before me this b )) ss.) Subscri solemnly swear that I am a Citizen of the United States and the State of CITY OF PORT TOWNSEND , do arian Hall D STATE OF WASHINGTON,County of Jefferson I,Washington; that I will support the Constitution and Laws of the United States and the Constitution and Laws of the State of Washington, and will to the best of my judgment, skill anfaithfully, diligently and impartially perform the duties of the office ofof Port Townsend, Jefferson County, Washington, as such duties are prescribed by law. DRAFT CITYOF PORT TOWNSEND MINUTES OF THE SPECIAL SESSION CITY COUNCIL (JOINT MEETING WITH PLANNING COMMISSION) OF MAY 22, 2025 CALL TO ORDER T he City Council met in special session on May 22, 2025, in the City Council chamber at 540WaterStreet.Deputy Mayor Howardcalled themeetingto orderat7:33pm ROLLCALL C ommissioners present at the rollcallwereAndreas Andreadis, Samantha Bair-Jones, Bob Doyle, Rick Jahnke, Stephen Mader, Viki Sonntag, and Lois Stanford City Councilmembers present during the new business roll call were Deputy Mayor, Amy Howard, Councilmember, Neil Nelson, Councilmember, Ben Thomas, Councilmember, Monica MickHager, Councilmember, Owen Rowe. Mayor David Faber was excused. Councilmember, Libby Urner Wennstrom was absent. Staff members present were City Manager, John Mauro, Planning and Community Development Director, Emma Bolin, Long Range Planner, Adrian Smith, Associate Planner, Jenny Murphy, Community Services Director,Melody Sky Weaver, andDeputy City Clerk, Lonnie Mickle. OLD BUSINESS Continuingdiscussionof tools forthe ComprehensivePlan The City Council joined the Planning Commissioners to discuss the city’s Comprehensive plan. May 22, 2025 Special Session City Council Business MeetingPage 1 of 3 DRAFT Long Range Planner Adrian Smith presented the policies on the Framework Revision Tracker, the Implementation Strategy document and the draft goals and policy memo. Planning and Community Development Director, Emma Bolin and Adrian Smith discussed the schedule for both groups, ideas to include the public, staffing direction, and park designations. The City Manager, John Mauro, reviewed the city’s schedule of items that need to be discussed for the remainder of the year. Staff began discussing the policies on the Framework Revision Tracker, Cappy’s Trail, wetlands, parks overlay, the PROS plan, the level of services for Parks, an active transportation plan, bicycle and pedestrian friendly communities, and the creative district arts and culture plan with the Commissioners and Council members. Discussion ensued about the draft memo, and staff’s work on the information, different elements of the city’s comprehensive plan, affordable housing, timeframe of the PROS plan, policies supporting the wildlife corridor and Cappy’s trail, community park policy vs. a special park policy, the aquatic Center, pocket parks and schedules for the next meetings. Public comment: Devon Cohn spoke about the implementation strategy number three. Community Statement update Chair Rick Jahnke and Commissioner Vikki Sonntag gave an update on the progress of the community vision statement. UPCOMING MEETINGS * THURSDAY, MAY 22, JOINT PLANNING COMMISSION AND CITY COUNCIL MEETING. EXPECT FOCUS ON DRAFT GOALS AND POLICIES ORGANIZATION, DRAFT IMPLEMENTATION ELEMENT, AND DRAFT CLIMATE ELEMENT * THURSDAY, JUNE 12, PLANNING COMMISSION. EXPECT FOCUS ON DRAFT GOALS, POLICIES, AND IMPLEMENTATION ACTIONS. * THURSDAY, JUNE 26, PLANNING COMMISSION May 22, 2025 Special Session City Council Business MeetingPage 2 of 3 DRAFT COMMUNICATIONS Chair Rick Jahnke mentioned a lettertothe Commissioners asthe only communication for the group. ADJOURN There being no further business, the meeting adjourned at 9:28 pm Attest: City Clerk's Office May 22, 2025 Special Session City Council Business MeetingPage 3 of 3 DRAFT July 7, 2025 City Council Business MeetingPage 1 of 6 DRAFT July 7, 2025 City Council Business MeetingPage 2 of 6 DRAFT July 7, 2025 City Council Business MeetingPage 3 of 6 DRAFT July 7, 2025 City Council Business MeetingPage 4 of 6 DRAFT July 7, 2025 City Council Business MeetingPage 5 of 6 DRAFT July 7, 2025 City Council Business MeetingPage 6 of 6 PORT TOWNSEND CITY COUNCIL CONSENT AGENDA August 18, 2025 A. Approval of Bills, Claims and Warrants: Vouchers 177387 through 177475 in the amount of $609,263.76 Electronic Fund Transfers in the amount of $15,156.83 B.Approval of Minutes:May22, 2025, July 7, 2025 C. Staff Appointments to External Boards and Committees D. 2025 Second Quarter Financial Update Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item from the consent agenda). Agenda Bill: AB25-080 Meeting Date: August 18, 2025 Agenda Item: VIII.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Michael Spears, Water Resources Operations Manager Steve King, PW Director Date Submitted: August 18, 2025 Department: Public Works Contact Phone:360-385-3000 ext 5002 SUBJECT:Public Hearing Resolution25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City’s Water Use Efficiency Program CATEGORY: BUDGET IMPACT:No impact Consent Resolution Expenditure Amount: $ N/A Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Discussion Item Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item. SUMMARY STATEMENT: Municipal water suppliers shall develop and implement a water use efficiency program which includes sufficient cost-effective water use efficiency measures to meet the water use efficiency goals developed under WAC 246- 290-830. The Port Townsend City Council as the elected governing body of the public water system shall establish water use efficiency goals and must re-evaluate them every six years. Goals shall be set in a public forum that provides opportunity for consumers and the public to participate and comment on the water use efficiency goals. These goals are for the domestic system and not the raw water system. Water use efficiency goals must include: (a) Consideration of the system's forecasted demand and water supply characteristics; Climate change and population growth lead to increased water consumption through irrigation and domestic needs. (b) Measurable outcomes in terms of reduced or maintained water production or usage; See attached 2019-2024 Consumption and Leakage Data table (c) A schedule for achieving the water use efficiency goals; and (d) Implementation schedule for each water use efficiency measure selected under WAC 246-290-810(4). Goals are set on a six-year schedule Reducing consumption helps the City provide better service, minimizes future water treatment plant expansion and storage requirements.. See attached 2025 Water Use Efficiency (WUE) Goal Setting ATTACHMENTS: 2025 Water Use Efficiency (WUE) Goal Setting Resolution 25-025 CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve Resolution 25-025 Adopting the City of Port Townsend Water Use Efficiency Goal for the Period 2026-2031 and Incorporating the Goal into the City’s Water Use Efficiency Program ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Leak repair on 12-inch water main 2025 WATER USE EFFICIENCY (WUE) GOAL SETTING Background The Washington State Legislature passed the Municipal Water Law in 2003 to promote good stewardship of the state’s water resources. The program, commencing in 2007, established certain responsibilities that water suppliers must fulfill. Principal elements include the following: Water Use Efficiency Program Collect production and consumption data, forecast demand, evaluate WUE measures, calculate distribution leakage and implement a WUE program to meet goals. Distribution Leakage Standard Water suppliers must meet a 10% or less distribution system leakage rate to comply with the Municipal Water Law. Goal Setting and Performance Reporting The WUE requires municipal water suppliers to establish water use efficiency goals. Goals must be established through a public process and reported on annually. The WUE goals established through a public process are for a six-year period andshould be re-evaluated each cycle. Goals must be measurable, address water supply and demand forecasting, and include an implementation schedule for each goal. Metering Requirement The City must select, install, operate, and maintain production and service meters. The City’s WUE program must be updated every 6 years. 2019Water Use EfficiencyGoals Demand Side Goal Reduce city-wide per capita daily consumption 3 percent below the 2013-2017 average over a 6-year period. Supply Side Goal Maintain the 3-year rolling average water distribution system leakage below 6.5 percent. 2019 Performance Demand Side In 2019 a six-year goal was established to reduce daily, per-capita consumption by 3% (to 92 gallons per day) by the year 2025. Daily water consumption in 2024 was 84 gallons per capita. This is a savings of nearly 12 gallons per capita since the goal was established. The City has met this goal. Supply Side The 2019 supply side goal was to maintain the 3-year rolling average water distribution system leakage below 6.5%. The current 3-year rolling average water distribution system leakage (dsl) is 9.1%. While Port Townsend has not met its goal of maintaining a 3-year rolling average leakage below 6.5%, it meets the requirement to have the 3-year rolling average dsl below 10%. Port Townsend continues its supply side WUE measures. These measures include ensuring that all accounts are metered, repairing or replacing meters, identifying and repairing leaks. Large meter calibrations are checked periodically. 2019 -2024 Consumption and Leakage Data Year201920202021202220232024 Total Water Produced (gallons)365,033,000349,801,000381,775,000366,155,000371,202,000348,220,000 Authorized Consumption (gallons)335,108,856321,003,620354,893,140336,196,316340,417,686310,684,035 Distribution System Leakage (gallons)29,924,14528,797,38026,881,86029,958,68430,784,31437,535,965 Distribution System Leakage %8.2%8.2%7.0%8.2%8.3%10.8% 3-year annual average leakage %7.7%8.4%7.8%7.8%7.8%9.1% Per-capita avg daily consumption (gals)969295909184 Population served103711044011041111131113711324 2025 WUE Demand Side Goal The updated customer goal for the next six years (2026-2031) is to maintain the three- year rolling average city-wide per capita daily consumption at or below the previous 6- year average of 91 gallons per capita per day (gpcd). Per capita average daily consumption in 2024 was 84 gallons. This is notably less than the prior five years which ranged from 90 to 96 gallons. Given that the one-year low number may be representative of an unrepeatable cause, City staff believe that maintaining per capita use based on the six-year average consumption is a reasonable goal. Port Townsend has reduced per capita daily consumption from 111 gpcd in 2007 to 84 gpcd in 2024. Port Townsend is a destination for tourism, festivals, and other events which contribute significantly to water use. The City has already engaged water saving measures such as removing golf course irrigation from the municipal water system. Since additional opportunities for significant savings are less frequent, it is unlikely that per capita consumption will continue to fall at the rate it has in the past. Measures to Meet Demand Side Goal Education and outreach o Watershed tours, classroom presentations, Water Treatment Facility tours o Presentations as requested for schools and interest groups o Distribution of brochures and utility customer newsletter o Water conservation information on City Website Customer Leak Detection Education o Inform customers of potential leaks on customer side of meter based on increased consumption flagged in utility billing software Water Consumption Education o Utility bill showing water consumption history Data Collection o Water billing based on customer class usage Landscape Management o Promote xeriscaping of public spaces and parks 2025 WUE Supply Side Goal The updated supply side goal for the next six years (2026-2031) is to reduce the 3-year annual average distribution system leakage (dsl) from 9.1% to 7.8% by 2031. Measures to Meet Supply Side Goal System Measures o Replacement of all customer water meters 3-inch and smaller that were installed prior to 2021 over the next 3 years. Note that most meters in our system are over 20 years old. o Verify calibration of larger water meters o Continue leak detection program o Continue replacing old, small diameter, galvanized water lines that are prone to developing leaks Raw Water Conservation Measures The 2021 Water Supply Agreement between the City of Port Townsend and Port Townsend Paper Company includes delivery point metering and a raw water rate that encourages conservation and provides a funding mechanism for locating and repairing leaks in the raw water transmission pipeline. Resolution 25-025 RESOLUTION NO. 25-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON TO ADOPTING THE CITY OF PORT TOWNSEND WATER USE EFFICIENCY GOAL FOR THE PERIOD 2026-2031 AND INCORPORATING THE GOAL INTO THE CITY’S WATER USE EFFICIENCY PROGRAM. WHEREAS, in 2003 the Washington State Legislature passed the Municipal Water Law to address increasing demand on the State’s water resources and directed the State Department of Health to oversee and enforce a Water Use Efficiency Program to help ensure a safe and reliable drinking water supply; and WHEREAS, this program became effective on 22 January 2007 and established certain responsibilities that water suppliers must meet to include: a Water Use Efficiency Program; Distribution Leakage Standard; Goal Setting and Performance Reporting; and a Metering Requirement; and WHEREAS, the Water Use Efficiency goals are to be established through a public process for a six-year period and are to be re-evaluated at the end of each 6-year cycle;and WHEREAS, the adopted goals become a part of the City’s Water Use Efficiency Program which is reported to the Department of Health and water customers annually; and WHEREAS, the city proposed a WUE program that includes the updated customer goal for the next six years (2026-2031) of maintaining city-wide per capita daily consumption at or below the current three year rolling average of 91 gallons per capita per day (gpcd)and received public comment on the goal at the August 18, 2025 City council meeting; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: That the City adopt the proposed Water Use Efficiency Goal for the period 2026- 2031and incorporate the goal into the City of Port Townsend Water Use Efficiency Programas presented and incorporated herein. ADOPTED by the City Council of the City of Port Townsend at a special meeting thereof, held this 18th day of August, 2025. ______________________________ David Faber, Mayor Attest: _________________________________ Alyssa Rodrigues, City Clerk Agenda Bill: AB25-081 Meeting Date: August 18, 2025 Agenda Item:X.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Renata Munfrada Date Submitted: 08/15/2025 Department: Planning & Community Development Contact Phone: (360)385-3106 SU BJECT: Evans Vista: A Vision for Sustainable Community Housing CATEGORY: BUDGET IMPACT: ConsentResolutionExpenditure Amount: $0 Staff Report OrdinanceIncluded in Budget? Yes No Contract Approval Other: Discussion Item Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: Housing Strategy 3: Evaluate multiple funding models and increase coordination with partners for developing affordable housing. Cost Allocation Fund: N/A SUMMARY STATEMENT: Background Access to diverse, high-quality, affordable, and stable housing is essential for fostering a strong local economy, enhancing sustainability and resilience, and promoting overall community well-being. Housing is a fundamental component of an equitable and inclusive community. Expanding housing choices within city limits can help protect the natural environment, reduce commute times, encourage walking and biking, support local businesses, and enhance climate resilience. Currently, Port Townsend's housing stock does not adequately meet the needs of all residents, especially low-income households. Many individuals and families face challenges in securing housing, with rising home prices and a limited availability of rental options creating significant pressure on families, workers, and seniors. The widening gap between stagnant wages and increasing housing costs threatens the stability of the community. Middle Housing In response to these challenges, the City Council has implemented targeted zoning code changes to promote affordable, high-quality infill development. The Growth Management Act emphasizes the importance of "middle housing" for households earning between 80% and 120% of the area median income. This housing model integrates density with neighborhood-friendly design with an integrated neighborhood comprised of diverse housing options that accommodate various household sizes, income levels, and living arrangements. Port Townsend Municipal Code Page2/3 The planned development targets the provision of at least 25% of the planned 321 units to middle income earners, a group typically excluded from housing subsidies. The plan also seeks to provide a surge of apartment units currently lacking in the City’s urgently needed housing supply while revitalizing the Evans Vista neighborhood as part of the area's emerging commercial and business landscape. While the City is not the developer, efforts to make this property development ready can provide housing quantities and affordability that the private market alone has failed to provide. The City’s activities have been deliberate and enduring since project conception in 2019. Developer marketing and selection will proceed between now and late 2027. This step is in the City’s workplan and stands to benefit from in-hand and future grant funding opportunities. Grant Funding To date, Evans Vista received strategic grant support setting the table for site development. In 2021, the City sought funding from the state budget for land acquisition and utility infrastructure to support workforce housing, resulting in the allocation of $1.1 million in funding to purchase the Evans Vista property, located just south of the Rainier Street roundabout on Sims Way. This property is situated within the Rainier and Upper Sims Way Subarea and is backed by a plan adopted by the City Council in 2019. Additionally, the City secured a $1.7 million grant from the Washington State Department of Commerce's Connecting Housing to Infrastructure Program (CHIP) and a $2.5 million grant from the Environmental Protection Agency (EPA) to install a lift station that will serve the new development and surrounding area. This lift station is a vital component of the necessary sewer infrastructure to support the site and will be installed prior to the vertical construction of residential buildings. Evans Vista Roadmap To advance the project, City staff are developing a Disposition Roadmap to facilitate the implementation of the City’s master plan for the Evans Vista Neighborhood. This roadmap will provide a clear, step-by-step guide for land disposition, covering preliminary marketing, developer engagement, request for proposal (RFP) development, evaluation, and the execution of a Disposition and Development Agreement. The roadmap aims to serve as a practical planning tool, ensuring clarity in actions, roles, and timelines throughout the disposition process. Roadmap Actions 1. Gather Data and Develop Interview Collateral (Q3 2025) 2. Conduct Initial Developer Outreach: Phase 1 – “Soft Launch” (Q4 2025) 3. Draft Development Solicitation (Q4 2025) 4. Market Development Opportunity: Phase 2 – “Preview” (Q1 2026) 5. Hold Developer Site Visit & Discussion (Q2 2026) 6. Release Development Solicitation: Phase 3 – “Official Release” (Q2 2026) 7. Evaluate Proposals (Q3 2026) 8. Select a Developer (Q4 2026) The Port Townsend Municipal Code is current through Ordinance 3328, passed January 2, 2024. Port Townsend Municipal Code Page3/3 9.Negotiate Disposition & Development Agreement (Q4 2026 –Q2 2027) 10. Execute Disposition & Development Agreement (Q3 2027) 11.Conduct Due Diligence & Satisfy Conditions to Closing (Q3 2027 –Q3 2028) 12. Close on Property (Q3 2028) 13. Begin Construction (Q3 2028) Next Steps The Department of Commerce is currently accepting applications for a new round of CHIP funding, with a deadline of Friday, September 26, 2025. A minimum of 25% of the total units must be designated for low- and moderate-income (LMI) households for a minimum of 25 years. A total of $55 million is available for all jurisdictions from 2025- 2027 Washington State Capital Budget Building Construction Account. Moreover, Jefferson County’s Public Infrastructure Fund Board (PIF) has funding available to stimulate private investments that will foster job creation and economic improvement throughout Jefferson County. PIF funding, generated from sales and use tax, could be utilized to finance street improvements for Phase 1 of the Evans Vista development. This presentation to the City Council aims to update the Council and community on the progress being made to advance the Evans Vista project and to seek the Council’s endorsement for pursuing additional grant funding to support the successful development of new housing for residents in the region. ATTACHMENTS: Evans Vista City Council Update 8.18.25 Presentation STAFF RECOMMENDATION: Move to endorse staff pursuing additional grant funding in support of the Evans Vista Neighborhood Master Development. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ___ Other: The Port Townsend Municipal Code is current through Ordinance 3328, passed January 2, 2024. ust 18, 2025 g evelopment | Au DDD yyyyyyyyy ttt i nnnnnnn uuuu mm & Com g Planning & Community Development | August 18, 2025 ity Council | Plannin CCC dddddd nn eeeeee sss n A Vision for Sustainable Community Housing Evans Vista Neighborhood ns Vista Roadmap | Port Tow a vvv Evans Vista Roadmap | Port Townsend City Council | EEEEEE Community Housing Grants Coordinator IntroductionEvans Vista Neighborhood & VisionCity Priorities & PlanningHomeless EncampmentsEconomics of HousingDevelopment Takes TimeInfrastructure InvestmentRoadmap to Disposition Request for ProposalsGrant Funding Presentation Outline Community Development Block Grant (CDBG)Low Income Housing Tax Credit (LIHTC)Gallatin Housing Impact Fund ($10 million)Consolidated Plan (CDBG Entitlement)Fair Housing Equity PlanCommunity Housing DashboardAffordable Housing Ordinance (AHO)Short Term Rental (STR) OrdinanceTax Increment Financing (TIF)Capital Stack (Development Costs)1977 Community Reinvestment Act (CRA)Prevent Redlining (Housing Discrimination) ¤¤¤¤¤¤¤¤¤¤¤¤ Housing SubsidiesHousing Reports & PlanningHousing Related OrdinancesEconomic DevelopmentCommunity Reinvestment Act (CRA) ¤¤¤¤¤ Community Housing Grants CoordinatorIntroduction front 321 fostering a . arranged to encircle a shared thoughtfully designed housing . ," offering residents access to nature trails, pavilions, and Nestled within the natural beauty of PT, seamlessly transforming a forested expanse into a development Comprising a harmonious blend of mixed-sure buildings, walk-up apartments, traditional apartments, and townhomes, the meticulously crafted units greenspace. This vibrant heart of the community serves as a collective "lawn ample open space for communal gatherings. Emphasizing a commitment to holistic living, the project features two distinct community garden areas, a dog park, a day care building, and a captivating children's playground, dynamic and interconnected living experience Evans Vista Neighborhood ¤¤¤¤ that enjoy and be proud of. community asset Evans Vista aims to be a place where people live, families who can walk to local employment, and a nests into the existing trail Ɯŗŵń϶êŏċ϶Ųňêŏ϶Аê϶İŗŎđ϶Ĩŗŵ϶ and parks network for all to with the catalyze . scale The Evans Vista harmonizing Rainier Subarea Plan and helping to forerunner in that vision, momentum at a reginal the existing vision described in while Neighborhood can be a true , and identity with strong historical roots and a approach to the future. creative and intentional equitable, healthy and and strengthen PT's unique inclusive community getting it right helps sustain Housing is paramount to an , A Vision for Sustainable Housing resilience, and our and quality of life. success factor for our critical underpinning local sustainability and strong local economy Diverse, quality, affordable collective social well-being and stable housing in PT is a Evans Vista Housing Development Master PlanRainier Street & Upper Sims Way Subarea PlanSupporting Affordable Housing with Land & Infrastructure Evans Vista Neighborhood Public Outreach2023 Press Release Planning for Evans Vista¤¤¤¤¤ . single-family 78% of homes . affordable, dense, quality infill , accounting for New Neighborhoods Embracing DensityTactical Infill/ Infrastructure DevelopmentMiddle Housing/ Workforce Housing ¤¤¤ Most of the city's housing units are homes Prioritize and deliver targeted, timed, and impactful zoning code changes to help unlock and inspire development ¤¤ Council 2025 Workplan . (UN more density homes while still ," targeting the 80% and 120% AMI middle housing Growth Management Act The GMA emphasized the need for "workforce and households earning between Middle housing offers than single-family small-scale and neighborhood friendly in design.Housing is a Human Right. Universal Declaration of Human Rights Article 25/Maslov's Hierarchy). ¤¤¤ large apartment buildings. Rising home prices and a limited growing gap between what people earn and what limits, we can protect the natural areas surrounding us, , support local businesses, enhance greenhouse gas astructure to grow in a cost-effective way. range of income levels. , and ensure more people lead with creativity and resilience. , such as duplexes, triplexes, quadplexes, courtyard apartments, and housing in areas where people can live, work, and shop close by. climate resiliency mixed-use for how PT can meet its housing needs: Supporting affordable homes accessible to a Encouraging middle housing cottages, providing more options between single-family homes and Promoting Making the best use of existing lots and infr ¤¤¤¤ Comprehensive Plan: Housing Element Today, many people in PT are struggling to find housing they can afford. supply of rental homes have made it harder for families, workers, and older adults to stay in the community.Rising housing prices and stagnant wages have created a housing costs.By creating more housing choices within our current cityreduce commute times, promote walking and bikingemissions reduction and Vision ¤¤¤¤ . not than in the making it of residents. residents of color divergent renting housing & owning Port Townsend is expected to grow faster in the next 20 years past.The city's existing housing is meeting the needs Current low-income residents are cost-burdened and being displaced.Cost-burden is more common and more severe for PT Markets for housing are especially difficult for renters to move into homeownership. 2025 Housing Needs Assessment¤¤¤¤¤ 2045 units @ low-income unitstotal need of households in PT are of renters (1,195 h.h.) in PT of households in PT are of households in PT are 2,2004,000 homeless residents ¤¤ 126 inJeffCo*(2023 PIT)45% considered lower-income 63% earn less than 80% AMI 33% considered cost-burdened 18% severely cost-burdenedNumber of units needed inJeffCoby Key Findings¤¤¤¤¤¤ .(pg.26) four-fold increase in of wages and home costs lack of housing affordable to The current ratio of home prices to development patterns, combined with a lack This means it was easier to buy a home during 2023 comparative study White Paper: Exploration of Strategies for Supporting Infill & Affordable Housing The city declares that the the workforce constitutes a threat to public, social, and individual welfare.Housing infill is a must for sustainability of the City. Inefficient of density, creates as much as household tax and fee burden A revealed that the affordability of homes relative to wages has deteriorated. wages is nearly double that of the Great Depression period. the Dirty Thirties than it is now. ¤¤¤ High Property PricesDifficulty Saving for a DepositMortgage AffordabilityLack of Affordable Homes ¤¤¤¤ Difficulty Progressing from Renting to Homeownership Building Rental Housing at ScaleIncrease Overall Housing Supply Leverage Economics of Scale Construction Reduced Cost per Units Results in Lower RentsNexus Future Vision & Regulation of Private Property EV Proposes Higher Density than 32 Units per Acre ¤¤¤¤¤¤¤ Broken Housing LadderBuilding at Scale Improves AffordabilityEV Neighborhood Aligns with Goals of Comp Plan Broken Housing Ladder¤¤¤ . . Building particularly ensure that the site and a viable solution to the Rising rents are largest driver to homelessnessHousing is a homelessness problem new neighborhoods, like Evans Vista, is part of the solution.Housing scarcity and affordability are primary drivers of homelessness. While factors like mental health, substance use, and poverty can contribute, a lack of affordable housing significantly increases the risk of homelessness. The issue is acute in areas with high housing costs and limited availability.City has been proactive to remains developable housing need of the community. Homeless Encampments at DSHS ¤¤¤¤ address the underlying causes of te significantly to homelessness. also a societal one, with systemic factors When there aren't enough affordable housing units, people with low incomes are more likely to become homeless, especially if they face other challenges like job loss or health issues.Rents and home prices that are too high for low-income individuals and families to afford contribu While housing is a key driver, other factors like mental health issues, substance abuse, and lack of support systems can make individuals more vulnerable to becoming homeless.Homelessness can lead to further health problems, job loss, and social isolation, making it harder for individuals to escape homelessness.Addressing homelessness requires a multi-faceted approach, including building more affordable housing, providing rental assistance, and supporting individuals with services tohomelessness.There's a growing recognition that homelessness is not just an individual problem but like housing policy playing a significant role. ¤¤¤¤¤¤ Housing Shortage:High Housing Costs:Vulnerability Factors:Consequences of Homelessness:Solutions:Shift in Narrative: Housing is a Homelessness Problem¤¤¤¤¤¤ . . depends on its ability to new residential An affordable housing crisis can affordable workforce housing economic prosperity Employee AttractionEmployee RetentionHousehold Spending ¤¤¤ The City's provide quality The housing vision includes neighborhoods and thoughtfully-designed urban infill projects.A lack of affordable housing has a negative impact on the local economy. quickly become an economic crisis Economic Development ¤¤¤ y 25+ Years Covenant) Operations Operations Affordabilit 6 (Affordability (Affordability( n o i t c u r t s 1-2 Years n o & Lease Up 5 Construction C Groundbreaking Project Project Dealmaking 4 Developer Selection Issue RFP = Affordable Housing is Difficult Writing & Funding 3 Grant Writing Grant Identify Gap Subsidy 1-15 Years Project ProjectProject Assessing AAssessing Feasibility 2 Site Selection Lift Station to serve Sims/Rainier Subarea made possible by CHIP grant.Valuable infrastructure to serve the community. ¤¤ Project ProjectProject Concept Infrastructure Built First Developing DDeveloping 1 ¤ PREDEVELOPMENT Development Process is Slow Economics & Timing of Development¤ supported quired infrastructure for development. ance for planning and development of $3.1 million from the Washington State Legislature Connecting Housing to Infrastructure Program (CHIP)The City has obtained financial assistthe property. land acquisition and will assist with re Grant Funding & Regulatory Responsibilities¤¤ $1.7 $2.5 million required to support the crucial component of the Washington State Department of The lift station is a sewer infrastructure Evans Vista Neighborhood development, planned for a 14-acre site northwest of the Port Townsend Paper Mill. The lift station project is funded by a million Commerce CHIP grant and a Environmental Protection Agency (EPA) Community Grant. have existing sewer service and is Infrastructure is installed first and foremost. The Evans Vista property does not required for the development. Mill Road Lift Station Dundee Hill took 15 to get from beginning to Example: years ĩŵŗƇŏċăŵđêńĳŏĩ϶ъ϶ĳƂЪŹ϶ŹƂĳňň϶ŏŗƂ϶constructed! It takes time... ¤ Opportunity to do something special for community through thoughtful development.Need to identify primary tasks to from concept to construction.Outline timeline (City-owned banked land = land use control).Affordable housing development takes years even at best of times. Roadmap ¤¤¤¤ Roadmap Actions 1.Gather Data and Develop Interview Collateral (Q3 2025)ͮϼ9ŗŏċƇąƂ϶fŏĳƂĳêň϶?đƚđňŗŲđŵ϶ƇƂŵđêąİϾ϶¡İêŹđ϶ͭ϶АЧ¨ŗĨƂ϶xêƇŏąİШ϶Й£Ͱ϶ͮͬͮͱК3.Draft Development Solicitation (Q4 2025)Ͱϼ~êŵńđƂ϶?đƚđňŗ ŲŎđŏƂ϶ŲŲŗŵƂƇŏĳƂƢϾ϶¡İêŹđ϶ͮ϶АЧ¡ŵđƚĳđƜШ϶Й£ͭ϶ͮͬͮͲК5.Hold Developer Site Visit & Discussion (Q2 2026)Ͳϼ¤đňđêŹđ϶?đƚđňŗŲŎđŏƂ϶¨ŗňĳąĳƂêƂĳŗŏϾ϶¡İêŹđ϶ͯ϶АЧĨĨĳąĳêň϶¤đňđêŹđШ϶Й£ͮ϶ͮͬͮͲК7.Evaluate Proposals (Q3 2026)8.Select a Developer (Q4 2026)͵ϼđĩŗƂĳêƂđ϶?ĳŹŲŗŹĳƂĳŗŏ϶ъ϶?đƚđňŗŲŎđŏƂ϶ĩŵđđŎđŏƂ϶Й£Ͱ϶ͮͬͮͲ϶А£ͮ϶ͮͬͮͳК10.Execute Disposition & Development Agreement (Q3 2027)ͭͭϼ9ŗŏċƇąƂ϶?Ƈđ϶?ĳňĳĩđŏąđ϶ъ϶¨êƂĳŹĨƢ϶9ŗ ŏċĳƂĳŗŏŹ϶Ƃŗ϶9ňŗŹĳŏĩ϶Й£ͯ϶ͮͬͮͳ϶А£ͯ϶ͮͬͮʹК12.Close on Property (Q3 2028)13.Begin Construction (Q3 2028) Grant Funding DSHS PartnershipCounty Partnership Nonprofit Partnerships Homeless Encampments at DSHSLimited Developer CapacityLack of A.H. FundingFar from DowntownProximity to Paper MillLow-Barrier Non-Congregate Shelter Barriers Solutions Large Developable ParcelLift StationRegional Stormwater FacilityLand Write-DownCHIP/PIF Grant OpportunityRainier Street ImprovementsSims Way Sidewalk ImprovementsReserving Land for Forest BlockLarry Scott TrailDedicated StaffSupportive Council Identifying Resources & Obstacles Assets 2023City Council Final Design and Pro Forma Presentation th ¡°ЪŹ϶¡ŵđĨđŵŵđċ϶?đŹĳĩŏϾ϶cŗŏŗŵĳŏĩ϶9ŗŎŎƇŏĳƂƢ϶fŏŲƇƂ November 20 & Financing Plan Phasing Flexibility vs. CertaintyDevelopment SolicitationDevelopment Agreement І~êŵńđƂ϶9ŗŏċĳƂĳŗŏŹ϶¨ƜđđƂ϶¨ŲŗƂ϶ІІ\]đŏđŵêƂđ϶fŏƂđŵđŹƂ϶ƜĳƂİĳŏ϶?đƚđňŗŲŎđŏƂ϶9ŗŎŎƇŏĳƂƢІ~êŹƂđŵ϶?đƚđňŗŲđŵ϶Ƃŗ϶Ƃêńđ϶ŵđŹŲŗŏŹĳăĳňĳƂƢ϶ŗĨ϶ƚđŵêňň϶¨ĳƂđІ~êƢ϶¡êŵƂŏđŵ϶ƜĳƂİ϶ŗŏŲŵŗĨĳƂ϶?đƚđňŗŲđŵ϶Ĩŗŵ϶ϼcϼІ?ĳŹŲŗŹĳƂĳŗŏ϶ъ϶?đƚ đňŗŲŎđŏƂІđđċ϶Ƃŗ϶cêƚđ϶ƚŹϼ϶ËêŏƂ϶Ƃŗ϶cêƚđ Developer Roundtable t ec aster j M ro rdability ction lopment ill play a rofit partner the p a o e e p w Soliciting development proposals for a Master Developer on projectPossible nonprofit partner to manage affordabilityCity Council will play a crucial role in the developer selection process. Request for Proposals (RFP) ¤¤¤ Commerce is now accepting applications for a new round of CHIP grants. Applications are due by Friday, September 26, 2025.A minimum of 25% of the units must be set-aside for low- and moderate-income (LMI) households for at least 25 years.$55 million available for all jurisdictions. Funds from the 2025-27 Washington State Capital Budget Building Construction Account. Connecting Housing to Infrastructure Program Agenda Bill AB25-082 Meeting Date: August 18, 2025 Agenda Item: X.B Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Jodi Adams Date Submitted: August 15, 2025 Department: Finance Contact Phone: 379-4403 SUBJECT: Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 CATEGORY: BUDGET IMPACT:n/a Consent Resolution Expenditure Amount: Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item. SUMMARY STATEMENT: Staff requests City Council to authorize the amendment to Port Townsend Municipal Code 5.08 Business Licenses, increasing the threshold for business license requirements. The state is requiring an amendment to the model threshold. This change would make a one-time increase to a higher threshold to $4,000 for out of-city businesses from the current $2,000 threshold, effective January 1, 2026. This is the gross revenue threshold for the lowest level/tier of business licensing. Businesses located outside city limits who anticipate earning $4,000 or less will not be required to apply for a City of Port Townsend endorsement on their business license with the Department of Revenue. This will make it easier for small business owners and one-time sales to operate within the city without the additional cost of licensing. Other changes include: • Every four years thereafter, the threshold wouldhave an automatic periodic increase based oncumulative inflation. • The rates of inflation would be calculated using the Consumer Price Index-U (CPI-U) Western for June of each year compared to the previous year for the previous four years. • The rate of inflation would be calculated as zero in any year in which inflation was negative and capped at 5% per year or 20% over four years if inflation exceeded those amounts. • To make the threshold easier to administer, the cumulative inflation amount would be rounded to the nearest $100 ATTACHMENTS: 1. Ordinance 3351 2. Exhibit A 3. Staff Presentation CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve first reading of Ordinance 3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08 ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Ordinance 3351 Ordinance 3351 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, RELATED TO BUSINESS LICENSE EXEMPTION AND AMENDING PORT TOWNSEND MUNICIPAL CODE CHAPTER 5.08 WHEREAS the Washington State legislature amended RCW 35.90.080, requiring cities to make changes to business licensing, including a one-time increase to the base threshold, and an automatic periodic increase every four years; and WHEREAS, the mandated changes require amendments to Port Townsend Municipal Code Section 5.08.045, with an effective date of January 1, 2026; and WHEREAS, pursuant to the City’s agreement with the Washington State Department of Revenue to facilitate the City’s business licensing process, the City must give the DOR 75-days advance notice of any changes to the City’s business license ordinance; and WHEREAS, DOR is requesting that the City attempt to adopt the ordinance amendments by August 26 or as soon as possible. NOW, THEREFORE, the City Council of the City of Port Townsend ordains as follows: Section 1. Amendments. Section 5.08.045of the Port Townsend Municipal Code is amended as shown in Exhibit A and incorporated by this reference. Section 3.Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance, or the application of the provision to other persons or circumstances, is not affected. Section 4.Publication. This Ordinance shall be published by an approved summary consisting of the title. Section 5.Effective Date. This Ordinance shall take effect and be in force five days after the date of its publication in the mannerprovided by law. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 1st day of September 2025. ______________________________ David Faber Mayor Attest: _____________________________ Alyssa Rodrigues City Clerk EXHIBIT A 5.08.045 Exemption. The following shall be exempt from compliance with the city business license fee portion of this chapter: A. A bona fide charitable or nonprofit organization. A “bona fide charitable or nonprofit organization” means any organization for which contributions to such organizations qualify for charitable contribution deduction purposes or which is otherwise exempt from payment of federal income taxes pursuant to the Internal Revenue Code, including Section 501(c)(3). Organizations shall present proof of tax exempt status to the city finance director and shall be required to register with the city finance director and provide all of the information required of a business license applicant. B. Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business made within the city is equal to or less than $2,000 $4,000 and does not maintain a physical place of business located within city limits; such businesses shall submit a business registration to the city finance director or designee for no fee. The income threshold exemption does not apply to regulatory license requirements or activities that require a specialized permit. C. The threshold amount will be adjusted every forty-eight months on January 1, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year, and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. Chapter 5.08 Absent Co floor conf nd LocationChambers Chambers Pacific Room 615 Sheridan Chambers Jeff Co Chambers ChambersChambers Chambers Chambers ChambersChambersChambers Chambers 2ChambersChambersChambersChambers Chambers Port Pavilion 620 Tyler Street Chambers Jeff ) www.cityofpt.us website Setting Water Use Efficiency Goals - City Quarter Financial Reports nd Item See Second Reading g In Officer - SCHEDULE CITY OFFICES CLOSED Agenda - change. Evans Vista RFP BriefingPublic HearingConsent: 2SwearinUpdate Chapter 5.08 PTMC Business License, Required State UpdatePriority Street for 2026 Work PlanComprehensive Plan Budget: 2026 Budget Revenue Estimates Second Supplement to MEETINGS Tentative CANCELED HOLIDAY subject CITY only, draft is Streets - (Joint with schedule (This and Open Space Notice of Appeal - Planning for Our Future - Biking, Parks Meeting House of king, TypeCity Council Business Meeting Hearing ExaminerClimate Action Committee Parks, Recreation, Trees and Trails Advisory BdJefferson County Housing Fund Board Special Session Planning Commission Planning Commission Historic Preservation CommitteeCouncil Infrastructure and Development CommArts CommissionCouncil Finance and Budget Committee City Council Workshop MeetingPlanning Commission)Lodging Tax Advisory Committee Council Culture and Society CommitteeEquity, Access, and Rights Advisory BoardCivil Service CommissionPlanning Commission City Council Business MeetingIntergovernmental Collaborate Group (ICG)Open WalParks, Recreation, Trees and Trails Advisory BdJefferson County Housing Fund Board City Council Business Meeting Time6:00 12:003:004:302:306:306:30 3:00 6:00 3:003:003:00 6:00 3:003:0012:304:156:30 6:005:00 4:302:30 5:00 DateAug 18 Aug 19Aug 26Aug 26Aug 27Aug 27Aug 28 Sept 1 Sept 2 Sept 2 Sept 3Sept 4Sept 8 Sept 8 Sept 9Sept 10Sept 11Sept 11Sept 11 Sept 15Sept 18 Sept 22Sept 23Sept 24 DayMon TuesTuesTuesWedWedThurs Mon Tues Tues WedThursMon Mon TuesWedThursThursThurs MonThurs MonTuesWed rs . room floor large nd Chambers ChambersChambers Chambe Chambers Chambers Chambers 2confChambers ChambersChambers Chambers Pink House Chambers Jeff Co Chambers Chambers Pacific Room 615 Sheridan Chambers iminary Budget Reading nd ital Budget Presentation ork Plan Review/ Council Committee Updates W Dec) - get: 2026 Cap (Nov Standards Second Supplemental 2Quarterly BudBudget: Property Tax Update and PrelPublic Hearing Design Adoption and Engineering Renewals of Hearings ittee UpdateRecords Management PoliciesMountain View Leases (December) BudgetContract November) Committee Committee Budget Oct.) September, sion and July, and Society Committee usiness Meeting May, nce Apr., lture u Plan CommissionCommis ncil Workshop Infrastructure and Development Comm (Jan, (February, Service Commission Meeting Cou ivil ouncil Fina Review Group Planning Commission Council Arts Commission City Council B Historic Preservation Council CEquity, Access and Rights Advisory BoardCPlanning C City Library Advisory Board Meeting City Council Business Meeting Jefferson County Housing Fund Board Planning Climate Action Committee Parks, Recreation, Trees and Trails Advisory Bd Comprehensive 00 Workplan :00 City’s 6:303:3:00 6:00 3:003:0012:304:156:303:00 6 1:00 6:00 2:306:303:004:30 Collaborative and the to Board Sept 25Oct 1Oct 2 Oct 6 Oct 7Oct 8Oct 9Oct 9Oct 9Oct 13 Oct 13 Oct 14 Oct 20 Oct 22Oct 23Oct 28Oct 28 Update d e hurs IntergovernmentalAdoption of Shoreline Master Program UpdateSuggestionCouncil Committee Reports (April, July, October)Period ThursWThurs Mon TuesWedThursThursTMon Mon Tues Mon WedThursTuesTues