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HomeMy WebLinkAbout061526 City Council Business Meeting Packet PORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. June 15, 2026 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): A. Chetzemoka Park Improvements/Projects 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: April 6, 2026 C. Resolution 26-011 Approving the Final Planned Unit Development and Final Plat for Madrona Ridge- Phase 2, Located in Jefferson County, Washington, City File No. LUP25-059 D. 2026 First Quarter Financial Reports E. Authorizing Deferral of Building Fees and Utility Connection Charges for Habitat for Humanity Low Income Housing Unit- Rosalynn Cout VIII. Public Hearing A. Resolution 26-012 Setting the Conditions to Vacate Street Right of Ways in Cappy’s Trails and Directing the City Manager to Prepare the Vacation Ordinance When all Conditions are Met Proposed Action: Move to approve Resolution 26-012 Setting the Conditions to Vacate Street Right of Ways in Cappy’s Trails and Directing the City Manager to Prepare the Vacation Ordinance When all Conditions are Met 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 A. Ordinance 3366 Relating to Conversion of Existing Buildings to Residential Uses and the Addition of Residential Uses in Existing Buildings in Accordance with HB 1757; Amending Development Regulations in Title 17 of the Port Townsend Municipal Code; and Establishing an Effective Date Proposed Action: Move to approve Ordinance 3366 Relating to Conversion of Existing Buildings to Residential Uses and the Addition of Residential Uses in Existing Buildings in Accordance with HB 1757; Amending Development Regulations in Title 17 of the Port Townsend Municipal Code; and Establishing an Effective Date i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action X.New Business A. Transportation Improvement Board Grant Application Priorities Proposed Action: Move to support Transportation Improvement Board (TIB) grant applications committing to funding match up to $600,000 million combined for all four grant programs. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action XI. Presiding Officer’s Report th A. Pre-work and preparation for the July 13 Strategic Workplan Retreat XII.Suggestions for Future Agendas XIII.Comments from Council XIV.Adjourn 10 days - Construction is scheduled to begin in September 2026 with the removal of the old existing equipmentThis will be done by our parks team to keep costs down on the projectOnce the site is ready contractors will be onsite to install the new equipment with an anticipated lead time 7Parks staff will be installing the ADA trail, ramp and safety chips once the equipment has been installedMiddle of October anticipated ribbon cutting ••••• July - – 5:00pm 9 6:30pm at Gazebo Park Gazebo Open House at the project information Park Kiosks with Social media post Onsite Project Kiosk Construction Press Release week of June 15 Farmers Market Tabling July/August June 15 set for week of out to neighbors Letters to be sent DRAFT April 6, 2026 City Council Business MeetingPage 1 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 2 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 3 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 4 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 5 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 6 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 7 of 8 DRAFT April 6, 2026 City Council Business MeetingPage 8 of 8 Agenda Bill AB26-067 Meeting Date: June 15, 2026 Agenda Item: Consent VII.C Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Emma Bolin/ Steve King Date Submitted: 6-11-2026 Department: PCD/ Public Works Contact Phone: SUBJECT: Final Planned Unit Development Plat – Madrona Ridge, Phase 2. This is a closed record action for the City Council per PTMC 20.01.040 as a Type IV permit process. CATEGORY: BUDGET 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: Washington State law allows one open-record public hearing for land use proposals. For the Madrona Ridge PUD, that hearing occurred during review of the Preliminary PUD and Preliminary Plat, approved by the Hearing Examiner (LUP21-064; LUP21-066–068) with conditions. The approval allowed phased final plat review. Phase 2 is consistent with the Preliminary PUD, SEPA, and later approvals, including the Minor PUD/Plat Modification authorizing phasing (LUP22-045). Phase 2 is at 1601 Rainier Street, Port Townsend (Section 9, Township 30N, Range 1W, W.M. Jefferson County; Tax Parcel 970100304), owned by Millrose Properties Washington, LLC. Lennar Northwest, LLC submitted the application as authorized agent (Power of Attorney dated February 20, 2025). The project is governed by the recorded Madrona Ridge PUDA (April 1, 2025), which incorporates all approvals and conditions and runs with the land. Critical areas are addressed through the Final Mitigation Plan (Wetland Resources, Inc., revised October 23,2025), consistent with SEPA and Hearing Examiner conditions, including buffers, restoration, monitoring, and stormwater measures. Landscaping and tree conservation comply with PTMC 19.06 and approval conditions, with maintenance enforced through the PUDA, CC&Rs, and HOA. The Final Plat confirms lot configuration and closure accuracy. Title evidence (First American, October 2, 2025) shows clear vesting with no defects. City staff verified that all conditions of approval are satisfied or secured. Final plat approval is ministerial; as a closed-record decision, the City Council may not take new testimony or impose new conditions, and is limited to confirming compliance with existing approvals and codes. ATTACHMENTS: Exhibit A: Resolution No. 26-011 with associated exhibits. Exhibit B: Hearing Examiner’s Decision Exhibit C: Conditions Compliance Matrix Exhibit D: Madrona Ridge, Phase 2 Final Plat Map CITY COUNCIL COMMITTEE RECOMMENDATION:N/A RECOMMENDED ACTION: If adopted as part of the Consent Agenda, no further action is needed; this represents unanimous approval of Resolution 26-011 Approving the Final Planned Unit Development and Final Plat for Madrona Ridge- Phase 2, Located in Jefferson County, Washington, City File No. LUP25-059 ALTERNATIVES: Take No Action Refer to CommitteeRefer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Resolution No. 26-011 RESOLUTION NO. 26-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, APPROVING THE FINAL PLANNED UNIT DEVELOPMENT AND FINAL PLAT FOR MADRONA RIDGE –PHASE 2, LOCATED IN JEFFERSON COUNTY, WASHINGTON, CITY FILE NO. LUP25-059 WHEREAS, on March 28, 2022, following an open-record public hearing, the City of Port Townsend Hearing Examiner approved the Madrona Ridge Planned Unit Development (PUD) and associated Preliminary Plat, including environmental review, under City File Nos. LUP21-064, LUP21-066, and LUP21-068, subject to conditions; and WHEREAS, the Hearing Examiner’s decision expressly authorized the PUD and subdivision to be developed in phases, with subsequent phased final plat approvals, contingent upon compliance with all applicable conditions of approval; and WHEREAS, on August 11, 2022, the City approved a Minor Planned Unit Development and Plat Modification under City File No. LUP22-045, confirming and clarifying the approved phasing framework for the Madrona Ridge development; and WHEREAS, the property comprising Madrona Ridge Phase 2 is located at 1601 Rainier Street, Port Townsend, Washington, within a portion of Section 9, Township 30 North, Range 1 West, W.M., Jefferson County, Washington, and is owned by Millrose Properties Washington, LLC; and WHEREAS, the City received a complete application for Final Planned Unit Development and Final Plat Approval for Madrona Ridge Phase 2, under City File No. LUP25-059; and WHEREAS, the Phase 2 application was submitted by Lennar Northwest, LLC, acting as authorized agent for the property owner pursuant to a valid Power of Attorney effective February 20, 2025; and WHEREAS, the applicant submitted a Phase 2 Final Plat and all supporting materials required for final plat approval, including title evidence, conditionsofapproval compliance documentation, stormwater operations and maintenance materials, landscaping and tree conservation plans, wetland mitigation plans, and recorded and record-ready covenant and development agreement documents; and WHEREAS, the Property Use and Development Agreement (PUDA) for Madrona Ridge was recorded on April 1, 2025, runs with the land, and incorporates the approved Preliminary PUD, phasing authorization, and all applicable conditions of approval governing Phase 2; and Resolution No. 26-011 WHEREAS, Planning and Community Development and Public Works staff reviewed the Phase 2 Final Plat materials and determined that all applicable conditions of approval imposed by the Hearing Examiner, SEPA determinations, and subsequent administrative approvals have been satisfied or appropriately secured; and WHEREAS, under Chapter 58.17 RCW and PTMC 20.01.040, approval of a final plat that is consistent with an approved preliminary plat is a ministerial, closed-record action, and the City Council’s review is limited to determining whether the Phase 2 Final Plat complies with prior approvals and applicable law. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: Section 1. Findings The City Council finds that the Madrona Ridge Phase 2 Final Planned Unit Development and Final Plat, as depicted in Exhibit A, satisfies the applicable approval criteria and requirements as follows: 1.State Subdivision Law. The Phase 2 Final Plat complies with the requirements of Chapter 58.17 RCW, including but not limited to RCW 58.17.110, RCW 58.17.140, and RCW 58.17.165, governing final plat approval, conformity with preliminary approval, and recording requirements. 2.Local Land Use Authority and Procedures. The application has been processed in accordance with PTMC 20.01.040(Type IV permit process), and the City Council has jurisdiction to approve the final plat as a closed-record, quasi-judicial, ministerial action, consistent with applicable state and local law. 3.Planned Unit Development Standards. The Phase 2 Final Planned Unit Development complies with the applicable provisions of Title 17PTMC, including Chapter 17.32 PTMC, and is consistent with the approved Preliminary Planned Unit Development, Preliminary Plat, and authorized phasing. 4.Subdivision and Development Standards. The Phase 2 Final Plat conforms to the applicable subdivision, infrastructure, and design standards of Title 18PTMC, as those standards were applied and conditioned at the time of preliminary approval. 5.Consistency with Prior Land Use Approvals. The Phase 2 Final Plat is consistent with and implements the conditions of approval imposed by the Hearing Examiner under City File Nos. LUP21-064, LUP21-066 through LUP21-068, the approved Minor PUD/Plat Modification (LUP22-045), and all associated SEPA determinations, as required by RCW 58.17.140. 6.Conditions of Approval Compliance. Planning and Community Development and Public Works staff have verified that all applicable conditions of approval for Phase 2 have been satisfied or adequately secured, and that no outstanding condition precludes final plat approval. Resolution No. 26-011 Section 2. Approval The City Council hereby approves the Final Planned Unit Development and Final Plat for Madrona Ridge Phase 2, under City File No. LUP25-059, subject to the following continuing requirements: A. The recorded Property Use and Development Agreement (PUDA) for Madrona Ridge, together with all approved amendments and incorporated exhibits, shall govern the Phase 2 Final Plat and shall remain binding on the property and all successors in interest. B. The First Amendment to the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) applicable to Madrona Ridge Phase 2 shall be recorded with the Jefferson County Auditor concurrently with, or prior to, recording of the Phase 2 Final Plat. Section 3. Execution of Plat The City Council authorizes and directs the Mayor, City Clerk, and other appropriate City officials to sign and execute the City’s approval on the face of the Phase 2 Final Plat upon satisfaction of all recording prerequisites. Section 4. Recording The applicant shall record the approved Phase 2 Final Plat with the Jefferson County Auditor following completion of all required inspections and approvals and payment of all applicable City fees, charges, and assessments. ADOPTED by the City Council of the City of Port Townsend at a regular meeting th day of June, 2026. thereof, held this 15 __________________________________ Amy Howard Mayor ATTEST: __________________________________ Alyssa Rodrigues City Clerk BEFORE THE HEARING EXAMINER FOR THE CITY 1 OF PORT TOWNSEND 2 Phil Olbrechts, Hearing Examiner 3 RE: Madrona Ridge 4 Preliminary Plat, Planned Unit FINAL DECISION 5 Development, Plat Vacation and Critical Areas Approval 6 LUP21-064 and LUP21-066 though 7 LUP21-068 8 INTRODUCTION 9 Montebanc Management LLC has applied for approval of applications for a preliminary plat, 10 plat vacation, d critical areas permit for a 167-lot single-family residential development on over 39 acres located along both sides of Rainier 11 St. and north of the Discovery Road roundabout. The applications are approved subject to conditions. 12 Port Townsend is singularly unique in the concern of its residents with global issues that 13 transcend their municipal boundaries, in this case focusing upon affordable housing and climate change. Unfortunately for the residents, the City has no legal authority to make the 14 developer responsible for addressing those two pressing problems. As to affordable housing, the courts dont consider developers to be the cause of unaffordable housing. Case law on 15 that subject, referenced in Conclusion of Law No. 3.5 below, strongly suggests that affordable housing should be a problem addressed by the population at large as opposed to 16 making individual developers shoulder that burden. 17 Regarding climate change, the record simply doesnt support any mitigation. As outlined in Conclusion of Law No. 3.6 below, the City has the burden of proof in establishing both a 18 problem created by the developer and the necessity of mitigation to remedy it. In this case, there is no precise data on how much climate change damage will be created by the proposal 19 what mitigation is necessary to remedy that damage. Mr. Talberth presented the intuitively appealing concept of no net loss in forestland, but there is no scientific evidence in the record 20 to support that such mitigation is both necessary and effective. In addition, in the absence of any federally coordinated land use mitigation program, there is no assurance that the 21 potentially substantial expense involved in no net loss mitigation would create any material reduction in climate change impacts. 22 TESTIMONY 23 A computer-generated transcript accompanies this decision as Appendix A. The transcript is 24 provided for informational purposes only. 25 EXHIBITS 26 PUD, PP, CA p. 1 Findings, Conclusions and Decision The March 11, 2022 revised staff report in addition to attachments A-Q identified at page 34- 1 35 of the staff report were admitted during the hearing as Exhibit 1. 2 The following documents were also admitted as exhibits at the March 14, 2022 continued hearing: 3 Exhibit R: November 29, 2022 letter from Robert Nagle 4 5 FINDINGS OF FACT Procedural: 6 1. Applicant. The applicant is Montebanc Management LLC, 400 NW Gilman 7 Blvd 32781, Issaquah, WA 98027. 8 2. Hearing. A virtual hearing was held on March 8, 2022 at 2:30 pm with continued testimony on March 14, 2022. 9 10 Substantive: 11 3. Site and Proposal Description. Montebanc Management LLC has applied for approval of applications for a preliminary plat, plat vacation, planned unit development 12 -lot single-family residential development on over 39 acres located along both sides of Rainier St. and north of the Discovery Road roundabout. 13 More specifically, the project involves roughly 34+-acres west of Rainier St., north of the Discovery Rd. roundabout and north of the currently undeveloped 15th St. right-of-way. An 14 additional 5.5-acres east of Rainier St. and north of the 15th St. right-of-way is also part of the project. Project stormwater facilities are proposed on both sides of Rainier St. but no 15 residential lots are sought on eastern portions of the site. 16 Rainier St. off-site to the south is partially improved to City arterial standards between Discovery Rd. and the 12 St. right-of-way (ROW). 17 West of Rainier St. new residential lots will be served by a network of public roads and a 18 series of three (3) private driveway street network provides logical connections to existing and/or planned ROW 19 of the site. The 3 private driveways will access a total of 14 lots. 20 East of Rainier St. will be preserved as open space except a stormwater pond on for roughly 1-acre of upland and two (2) smaller areas planned for outfall use by (2) 21 (4) stormwater pond facilities. 22 Several confirmed wetlands exist both on and off-site. On-site wetland buffers are shown as modified but are retained as open space through use of buffer averaging. Conditions related 23 to operation and maintenance of these areas, including overflow stormwater facilities directed into wetland buffers, is part of this staff recommendation. 24 In their PUD request, Madrona Ridge seeks to modify typical City standards related to lot 25 size, building setbacks, lot coverage and the Engineering Design Standards (EDS) (i.e. public and private road improvements). Specifically, their request (Ex. A PUD Narrative) asks 26 for: PUD, PP, CA p. 2 Findings, Conclusions and Decision 1 With the exception of Madrona Boulevard, all other public local access roadways 2 Three (3) new private driveways serving a total of 14 lots. The road section 3 Reduced minimum lot sizes with a 3,600 sq. ft. minimum. 4 Front yard setback reductions dow 5 Maximum lot coverage permitted on all lots modified to allow 45%. 6 Relief from Daylight Plane requirements for new residential structures as typically prescribed under PTMC 17.16.030D. 7 The Plat Vacation is requested to vacate the alley in Blocks 2 and 3 of the Motorline Addition 8 together with all of the 16th St. right-of-way. 9 4. Surrounding Uses: North of the site is zoned P/OS(B) (Mixed 10 facility, water reservoir and standpipe. There is also a leased wireless communication 11 tower compound on the City-owned property. Properties to the south of 15th St. are zoned a mixture of R-III and R-IV (High Density residential). The staff report 12 doesnt identify the uses located to the west and east. The aerial photographs of the critical areas report, Ex. C, show the areas to the east and west as heavily wooded and 13 undeveloped. The zoning map shows these parcels zoned R-II. The critical areas report notes that surrounding land use is comprised mostly of undeveloped lots. 14 5. Adverse Impacts. As mitigated, there are no discernible adverse impacts 15 that will be created by the proposal. A SEPA Determination of Non-significance was issued for the proposal on January 19, 2022. Infrastructure impacts are addressed in 16 Finding of Fact No. 6. Other impacts are more specifically addressed as follows: 17 A.!Compatibility. The proposal is compatible with surrounding development. As 18 noted in Finding of Fact No. 4, the Citys water treatment plant is located to the north and the remaining surrounding properties are zoned at the same or 19 greater residential densities. The residentially zoned properties are largely undeveloped. 20 The open space/critical area tracts provide for enhanced compatibility by 21 creating extensive buffering along adjoining uses, in particular along both sides of Rainier Avenue as well as the southwest corner of the project site. No 22 screening is necessary along the northern project site as the adjoining property th is composed of the Citys water treatment site. Unopened 15 Ave along with 23 a proposed adjoining trail is located along the southern property line. 24 Screening along the western property line is unclear. Page 20 of the staff 25 report notes that \[r\]evisions to the preliminary landscaping plan (Ex. B) will be needed to provide added emphasis on screening along the west property 26 line. This requirement doesnt appear to be integrated into the conditions of PUD, PP, CA p. 3 Findings, Conclusions and Decision approval perhaps staff was intending on requiring this as part of its review 1 of a final landscaping plan. Conclusion No. 7 of the staff reportalso 2 references a ten-foot landscaping strip along the western perimeter, but this strip doesnt appear to be included in the landscaping plan. The conditions of 3 approval recommended by staff have been modified to ensure that this additional screening is included in the final landscaping plan. 4 B.!Critical Areas. The project site has six (6) confirmed Category III wetlands 5 and one Category IV wetland (see Ex. B site plan and Ex. C). The geotechnical report for the project, Ex. D, identifies no geologic hazardous 6 areas and there is no evidence of any other critical areas at the project site. A Critical Area code checklist has been prepared to analyze and establish 7 conditions for the project with respect to the subject wetlands (Exhibit L Critical Area checklist). Staff have found the recommended conditions to 8 bring the proposal into conformance with the Citys critical areas regulations. 9 Ex. L and resulting conditions are incorporated into the project decision. The Applicants wetlands analysis, Ex. Cand C1, conclude that as mitigated the 10 proposal will result in no net loss of ecological function. As detailed in Ex. L, each Category III wetland qualifies for application of a 150-ft. buffer based on 11 high intensity land use planned at Madrona Ridge. The Category IV wetland (i.e., Wetland A-3) requires a standard 50-foot buffer. 12 13 C.!Trees. The proposal provides for adequate retention/replacement of trees as required by City tree retention standards. 14 15 All preliminary short applications require the concurrent submittal, review and approval of a Tree Conservation Plan (TCP) prepared consistent with PTMC 16 A preliminary TCP was submitted for this project showing existing trees and those planned for removal. Prior 17 to final plat recording, the conditions of approval require the applicant to prepare and present a final TCP. Staff have determined that conditioned in 18 this manner, the proposal will be able to conform to the Citys tree retention requirements. 19 20 D.!General Nuisance Impacts: light and shadow; noise, smoke, dust, odor, glare, vibration or other undesirable impacts. Beyond the other nuisance 21 impacts identified in Finding 5A-C, no other nuisance impacts are found to exist due to the inherent nature of the proposed/allowed residential use. The 22 greatest impacts of concern would be those associated with the construction of the proposed homes and infrastructure. The Citys Engineering Design 23 Standards adequately minimize these impacts by regulating construction hours, erosion control and construction traffic control. 24 One comment letter focused on the problems of increasing light pollution 25 attributable to new development. A condition of approval requires street lighting to comply wit the Citys street lighting policy, Ordinance 3271. 26 PUD, PP, CA p. 4 Findings, Conclusions and Decision Ordinance 3271 adopts street light specifications designed to minimize light 1 pollution and related light impacts. 2 E.!Affordable Housing. Numerous members of the public expressed concern 3 over lack of affordable housing in the Port Townsend area. As would be expected, there is nothing in the record to suggest that the proposal adds to the 4 lack of affordable housing in the community or even increases the cost of housing. To the contrary, the proposal adds to the Citys housing inventory, 5 that reducing upward pressure on housing prices. Also, as noted in Ex. Q, the small lot sizes of the proposal will result in relatively small homes, which 6 should be associated with lower housing prices. 7 F.!Climate Change. There is insufficient evidence to establish proportionate and reasonable mitigation for climate change impacts. 8 9 In Ex. H, John Talberth, the President and Senior Economist for the Center for Sustainable Economy, makes a reasoned request for a climate smart design 10 for this development that minimizes its carbon footprint and requires mitigation measures for any forestland lossMr. Talberth advocates for a 11 no-net-loss policy for forestlands. 12 Although the adverse impacts of climate change are commonly understood, the record of this proceeding does not have any evidence on how the proposal 13 contributes to climate change and how or even if no-net-loss will effectively mitigate against those impacts. 14 6. Infrastructure. The proposal will be served by adequate and appropriate 15 infrastructure. Infrastructure impacts are specifically addressed as follows: 16 A.!Water and Sewer. The proposal will be served by adequate and appropriate 17 water and sewer. 18 Water service to Madrona Ridge will be provided via new public and private 19 infrastructure will include extension of a 10" diameter main line from the north end of the project to a point in the 15th St. 20 right of way determined by Public Works staff during review of the Street and Utility Development (SDP) process. Other city mains within the project will 21 be sized according to EDS standards. Any private service lines will be identified as part of the SDP process and shown on the face of the Final Plat 22 and PUD Agreement. Fire flow is available adjacent to the site via water 23 main extensions within the site. Fire hydrants will be installed in accordance 24 Sanitary sewer service is available to Madrona Ridge via an existing public 25 main running north-to-south in Rainier Street. Individual lots will be connected to this main via an engineered system of new public mains and 26 private side sewer lines and clean-outs. Public mains located within street PUD, PP, CA p. 5 Findings, Conclusions and Decision rights-of-way or public utility easements will be reserved to the City. Any 1 utility easements needed internally for the private sewer lines will be 2 determined as part of the subsequent SDP process and shown on the final Plat. 3 B.!Transportation. The proposal will be served by adequate and appropriate roads and pedestrian transportation facilities. 4 Interior access to Madrona Ridge lots is provided via a combination of new 5 public roads and private driveways. 6 With the Discovery Rd. roundabout installation and Rainier St. improvements associated with the Rainier subarea plan ent to 7 street infrastructure north of it along Rainier St. and to non-motorized improvements and connections, the Public Works Dept. determined the 8 existing road infrastructure was designed and built for the purpose of serving 9 the subarea and planned surrounding areas at the residential densities anticipated for the designated land uses. See Ex. P. This proposal is 10 consistent with the planned housing density for the area. 11 The Citys level of service (LOS) standards set acceptable levels of congestion. The proposal is found to meet those standards. Pursuant to 12 Public Works analysis, see Ex. P, the traffic volumes generated by this proposal is not anticipated to adversely impact adopted LOS on the 13 connecting public facility (Discovery Rd.) or any of the nearby intersections so long as project roadways including Rainier St. - are built to acceptable 14 Public Works standards and the proposed non-motorized connections are made. Specifically, these non-motorized improvements include off-site 15 improvements of a paved trail in the 15th St. right of way and the 16 development of a multi-use path on the west side of Rainier Street connecting to the existing roundabout at Discovery Road. A concrete sidewalk 17 connection will ultimately be made as well between the roundabout and 15th St. on the west side of Rainier St. when the adjoining property develops. 18 There was some concern at the hearing expressed about traffic congestion at 19 intersections that would serve the proposal. However, that testimony was not based upon any traffic engineering expertise and did not address the Citys 20 LOS standards. In the absence of any such evidence, the conclusions of the Citys public works staff, based upon traffic engineering expertise and 21 familiarity with the Citys LOS standards, must be taken as conclusive that the proposal will not violate those level of service standards. 22 23 The staff report concludes that public works standards and the proposed non- motorized connections are met. Specifically, proposed non-motorized 24 improvements include off-site improvements of a paved trail in the 15th St. right of way and the development of a multi-use path on the west side of 25 Rainier Street connecting to the existing roundabout at Discovery Road. A concrete sidewalk connection will ultimately be made as well between the 26 PUD, PP, CA p. 6 Findings, Conclusions and Decision roundabout and 15th St. on the west side of Rainier St. when the adjoining 1 property develops. 2 Road modifications sought by the Applicant to prescriptive City standards as 3 part of the PUD process can be adequately reviewed and conditioned through this process and the subsequent Street and Utility Development Permit (SDP) 4 process. 5 The project gains primary access from Rainer St., north of the Discovery Rd. roundabout, near the unopened 16th St. right-of-way. The City has identified 6 Rainier St. as a key north-to -- term transportation needs. 7 West of Rainier St. and running the east-to-west length of the site, a new 8 wn 9 within a newly dedicated 50-ft. wide right-of-way (ROW). The south side of Madrona Blvd. will have a 56 ft. wide concrete sidewalk and on-street 10 parking. The north side of Madrona Blvd. will have a 10-ft. wide Multi-Use pathway and on-street parking. 11 Other internal rights-of-way streets connecting to Madrona Blvd. will be 12 ith sidewalks on one side and landscaping on the other side. Public on-street parking is may be available on either or both sides 13 of the street depending on driveway layout to a achieve traffic calming effect. The arrangement of street trees may be flexed as part of the Street and Utility 14 Development Permit process to achieve an attractive streetscape aesthetic and efficient driveway arrangement. Road names for all internal roads will be 15 determined as part of the final Plat/Plat Vacation and PUD review process. 16 Tare shown in the plat 17 drawings with a 20 ft. wide paved section and wedge curb one side to accommodate 2-way traffic. Two (2) of the 3 driveways are short enough to 18 not require vehicular turnarounds. The third driveway (in the SE residential corner) is long enough to require a turnaround which is incorporated into the 19 adjacent stormwater pond maintenance access (Tract C, Storm Pond 4). Where determined necessary by Public Works staff, the private driveways will 20 need to reserve a public utility component for on-going City water and sewer line maintenance. 21 C.!Schools. The proposal will be served by adequate and appropriate school 22 facilities and safe walking conditions to and from school. The staff report 23 does not address impacts to schools. The capital facilities element identifies the Port Townsend School District as serving the City of Port Townsend with 24 one elementary school, one middle school and one high school. The City has no school impact fee. According to staff testimony, Salish Coast Elementary 25 School is about a half mile from the project site and children could walk to that school on a bike trail. Staff also testified that all school bus stops can be 26 accessed via sidewalks. PUD, PP, CA p. 7 Findings, Conclusions and Decision 1 D.Parks and Open Space. The proposalwill be served by adequate parks and 2 open space. There are no parks and open space requirements for subdivisions. The proposal includes 5,000 square feet of open space beyond the minimum 3 required by the Citys critical area regulations for the wetlands on site. 4 E.!Drainage. The proposal makes adequate and appropriate provision for drainage. 5 The submittal includes a preliminary engineered drainage plan and report (Ex. 6 B & D). The Madrona Ridge stormwater design includes three (3) on-site storm ponds to address home and internal road runoff. Home sites will need 7 to address runoff on-site to the extent possible before dispersing to the internal road network where it will then be conveyed to the constructed storm ponds. 8 The storm ponds have been designed to accept all roadway runoff and lot 9 coverage up to 45%. 10 A fourth storm pond (see Ex. B, Tract D/Storm Pond 4) is planned east of Rainier St. and north of 15th St. to accommodate Rainier St. runoff and is not 11 associated with any of the resulting homes or interior roads. The Applicant seeks to convey both Tracts D and Open Space Tract E to the City. The City 12 has agreed to accept both conveyances subject to conditions, If both Tracts are conveyed to the City, an easement to Madrona Ridge will be needed to 13 provide them access to the outfall pipe and infiltration trench connected to the Tract B/Storm Pond 2. If Tract E is not conveyed to the City, then the 14 conveyance of Tract D/Storm Pond 4 will need to be expanded to include that outflow pipe and trench. Public Works engineering staff has agreed 15 that Rainier Street runoff between 15th and 12th Streets can be accomplished 16 via swales adjacent to the roadway. These will be made conditions of the Street and Utility Development (SDP) review and approval process. 17 Public Works staff have reviewed the submitted stormwater documents and 18 indicate they are acceptable for continuing with the Preliminary Plat/Plat Vacation and PUD process. Aside from conveyance of Tract D, Madrona 19 Ridge residents will be jointly and severally responsible for on-going maintenance of the other 3 on-site stormwater management facilities. These 20 maintenance obligations will be specified and ensured via the PUD Agreement between the parties (i.e., the City and the Applicant). 21 22 7. Superior Design. The proposal provides for superior design and a significant increase in public benefit over a conventional preliminary plat. 23 Conventional development of this site is less desirable than the proposed PUD for 24 several reasons. First and foremost, the traditional "block and lot" pattern typically seen in Port Townsend would result in less open space preservation and would likely 25 26 averaging to achieve no net loss of wetland function and values (Exhibits C and C-1). Development is being clustered outside of the buffers to the extent practicable. While PUD, PP, CA p. 8 Findings, Conclusions and Decision the proposed design may be lower in density than prescriptive zoning permits, it does 1 so by balancing the need to protect wetlands with the Applicants goal of developing 2 an economically viable single-family residential subdivision. 3 The proposed road dedications ensure future logical street grid connections can be made while unnecessary openings of the existing transportation grid are avoided. 4 Staff have also found that the Applicant also proposes a cohesive pattern of housing that creates a neighborhood identity as encouraged by the Comprehensive Plan. This 5 neighborhood identity may not be guaranteed with conventional development. 6 The proposed aggregation of lots also assures better protection of the wetlands. Most notably, the dedication of all four of the existing parcels on the east side of Rainier 7 Street results in more wetlands protection than if the lots were developed 8 individually. Three of those four lots are completely encumbered by wetlands or buffers. If those three lots were developed individually under conventional 9 subdivision standards, the Applicant would qualify for reasonable use exceptions that would authorize development encroachment into the buffers and potentially even the 10 wetlands themselves. 11 The Applicant has also volunteered dedication of Tract I, approximately 5.84 acres, for permanent open space for public use. This tract would not be required under 12 conventional development standards. This open space Tract would feature a newly constructed multi-use natural surface trail that blends with the natural environment. 13 Tract I preserves the opportunity for a future new public park, if and when the City 14 acquires the adjacent Janke property located at 15th Street and Spring Street as a City Park site. A portion of this tract could have been used for addition SFH lots, but the 15 applicant chose to preserve this area as permanent open space, enhancing the public benefits of this PUD proposal. 16 The proposed density is ultimately significantly less than that available with the 17 underlying zoning designations. According to the Applicant, Ex. Q, the maximum density for the site would enable 493 units and the Applicant has instead only 18 proposed 167 units. The wetlands and associated buffers would likely significantly reduce density in a conventional subdivision as well, but the Applicant has not taken 19 all measures it could have taken to increase that density. As previously noted, the 20 Applicant has proposed more open space than required by the addition of Tract I. As noted in Ex. Q, the Applicant has also opted for buffer averaging instead of buffer 21 reduction (with mitigation), which also reduces density. 22 The Applicant is also proposing full width street improvements for Rainier Street along with associated stormwater conveyance and treatment and a multi-use trail on 23 the east side of the street. If the Applicant had not bundled the lots on the east of Rainier with the project, the City likely could not have required frontage 24 improvements on the eastern side of the street, except for perhaps the multi-modal 25 26 PUD, PP, CA p. 9 Findings, Conclusions and Decision 1 trail. Even if the Applicant needed the east side lots for the Tract D stormwater 1 control, that would only necessitate inclusion of one of the four lots. 2 Finally, the Applicants reduced roadway width decreases impervious surface and 3 reduced lot size reduces the size and hence cost of homes. The proposal also retains 30% more tree canopy than required by City standards. 4 For these reasons, development of this site through a PUD provides greater public 5 benefit without the adverse impacts than traditional "block and lot' development would allow. 6 7 CONCLUSIONS OF LAW 8 Procedural: 9 1. Authority of Hearing Examiner. PTMC 20.01.040 classifies PUDs, preliminary plats and plat vacation as Type III applications, which requires a hearing before the Hearings 10 Examiner, who must issue a final decision. Minor critical area permits are classified as Type II applications. PTMC 20.01.030 requires consolidated permits to be processed by the 11 highest review body required under any part of the application, which in this case is the Examiner. 12 Substantive: 13 2. Zoning Designation. Portions of the project site are zoned R-II (Medium Density 14 Single Family) and the remaining portions are zoned R-III (Medium Density Multi-Family). 15 3. Review Criteria. Chapter 17.32 PTMC describes the procedures and criteria for preliminary approval of a PUD. PTMC 17.32.100 establishes the minimum criteria by which 16 each proposed PUD will be considered and PTMC 17.32.090 sets forth approval criteria for a PUD seeking modified development standards. PTMC 18.16.060(A) governs the criteria for 17 preliminary plat approval. RCW 58.17.212 governs the criteria for plat vacations. PTMC 19.05.050B4 governs the criteria for critical area regulations. PTMC 20.01.235(D) requires 18 the Examiner to make a specified set of findings for all Type III (quasi-judicial) applications. All the governing criteria identified in this paragraph are quoted in italics and addressed 19 below. 20 3.5 Affordable Housing. The City cannot legally compel the Applicant to provide affordable housing units. Developers can only be made to mitigate problems they create. 21 See, e.g., Douglass Props. II, LLC v. City of Olympia, 16 Wash. App. 2d 158 (2021). In constitutional takings analysis, affordable housing is not considered a problem created by 22 2 developers. See Sintra, Inc. v. Seattle, 119 Wn. 2d 1 (1992). As determined in Finding of Fact No. 5E, the proposal is not exacerbating or creating a need for affordable housing. 23 1 Under nexus and proportionality requirements imposed by constitutional takings law, the City can 24 usually only make a developer install half street improvements. Cf. Sparks v. Douglas County, 127 Wn. 2d 901 (1995)(street frontage dedication for short plat justified under nexus/proportionality 25 standard of takings law). 2 Sintra held that 26 any low-income housing they destroyed or to pay a fee, potentially created a takings. As stated by the PUD, PP, CA p. 10 Findings, Conclusions and Decision 1 3.6Climate Change. The City cannot legally compel the Applicant to mitigate for climate change impacts due to inadequate evidence to justify such mitigation. 2 For conditions that involve exactions, whether they be dedications of land or fees to purchase 3 land, the City of Port Townsend has the burden of proof to show that the condition is reasonably necessary as a direct result of the proposed development. See Citizens' 4 Alliance v. Sims, 145 Wn. App. 649 (2008); Koontz v. St. Johns River Water 5 Management District, 570 US 2588 (2013). As outlined in Finding of Fact No. 5F, in this case there has been no evidence presented on how and to what extent the 6 proposal will exacerbate climate change and how much mitigation is necessary to remedy that impact. 7 Even if one could take the leap on this administrative record that 1:1 forest 8 preservation mitigation would be necessary to mitigate the climate change impacts of the proposal, theres still an outstanding legal issue of whether such mitigation could 9 be imposed given that such mitigation by itself would create no material change in climate change impacts. In the absence of a coordinated forest no-net-loss policy at 10 the federal level, it would appear very difficult to establish that piecemeal and 11 sporadic mitigation at the local level would serve to effectively mitigate climate impacts. At any rate, the evidence in this record does not prove that point. 12 At the hearing, Mr. Talberth cited to Wash. State Dairy Fed'n v. Wash. Dep't of 13 Ecology, 490 P.3d 290 (2021), which held that the Department of Ecology should have considered climate change impacts in its issuance of stormwater/wastewater 14 permits. However, that holding was based upon failure to consider climate change impacts in SEPA review. The appeal deadline for the SEPA MDNS was February 3, 15 2022. See Ex. I. The SEPA review conducted by the City has not been timely appealed and so is beyond the jurisdiction of the examiner to review. See, e.g., 16 Habitat Watch v. Skagit County, 155 Wn.2d 397, 410-11 (2005)(under principles of 17 judicial finality, administrative decisions that are not timely appealed are binding even if incorrect). 18 PUD Criteria: 19 PTMC 17.32.100(A)(1): PUDs shall be given preliminary approval, including 20 preliminary approval subject to conditions, upon finding by the city that all of the following have been satisfied: 21 22 1) The proposed PUD conforms to: (a) Port Townsend Comprehensive Plan; 23 4. Criterion met. With approval of PUD modifications to development standards, the criterion is met for the reasons identified in Findings No. 48-50 of the 24 staff report. 25 court: this burden \[replacing loss of affordable housing\] was unfairly allocated to individual 26 property owners, rather than equally distributed among all citizens. 119 Wn.2d at 15-16. PUD, PP, CA p. 11 Findings, Conclusions and Decision 1 (b) All provisions of the Port Townsend Zoning Code which are not proposed for 2 modification; 3 5. Criterion met. The criterion is met for the reasons identified at Findings No. 6-18 of the staff report. 4 (c) All engineering design standards which are not proposed for modification; 5 6. Criterion met. As noted in the staff report, p. 22-23, City staff have 6 reviewed the proposal for conformance to engineering design standards and have found the proposal compliant for this stage of project review as authorized by PUD 7 development standard modification standards. 8 (d) Environmentally Sensitive Areas Ordinance (Chapter 19.05 PTMC); 9 7. Criterion met. The criterion is met. The proposal is consistent with 10 Chapter 19.05, the Citys critical area regulations for the reasons identified in Finding of Fact No. 5B. 11 (e) Any other applicable city, state or federal regulations, policies or plans, except 12 those standards proposed for modification. 13 8. Criterion met. There is no evidence of noncompliance with any other government requirements that have not already been addressed. 14 PTMC 17.32.100(A)(2): Utilities and other public services necessary to serve the 15 needs of the proposed PUD shall be made available, including open spaces, drainage 16 ways, streets, alleys, other public ways, potable water, transit facilities, sanitary sewers, parks, playgrounds, schools, sidewalks and other improvements that assure 17 safe walking conditions for students who walk to and from school; 18 9. Criterion met. The criterion is met for the reasons identified in Finding of Fact No. 6. 19 PTMC 17.32.100(A)(3): The probable significant adverse environmental impacts of 20 the proposed PUD, together with any practical means of mitigating adverse impacts, have been considered such that the proposal will not have an unacceptable adverse 21 effect upon the quality of the environment, in accordance with Chapters 19.04 PTMC 22 and 43.21C RCW; 23 10. Criterion met. The criterion is met for the reasons identified in Finding of Fact No. 5. 24 PTMC 17.32.100(A)(4): Approving the proposed PUD will serve the public use and 25 interest and adequate provision has been made for the public health, safety, and general welfare; 26 PUD, PP, CA p. 12 Findings, Conclusions and Decision 11. Criterion met. The proposed project, subject to conditions of approval, 1 will serve the public use and interest by developing approximately 40 acres of land in 2 a comprehensive, coordinated manner that assures adequate and appropriate provision of public infrastructure in an urban growth area. It establishes open space areas, 3 preserves wetland and develops both hard surface and soft surface non-motorized trails. 4 PTMC 17.32.100(A)(5): The proposed PUD satisfies all criteria set forth in PTMC 5 17.32.070 through 17.32.090, as applicable; 6 12. Criterion met. As discussed below, the proposal meets the requirements of PTMC17.32.090. As Madrona Ridge PUD only seeks modified development 7 standards , the remaining approval criterion referenced above are inapplicable. 8 PTMC 17.32.100(A)(6): The proposed PUD will be superior to or more innovative 9 than conventional development and will provide greater public benefit without additional probable significant adverse impacts to public health, safety or the 10 environment, than available through the use of conventional zoning and/or development standards. 11 13. Criterion met. The criterion is met for the reasons identified in Findings 12 of Fact No. 5 and 7. 13 14 PTMC 17.32.090(C): Basis for Approval of Alternative Development Standards. Approval of alternative development standards for PUDs differs from the variance 15 procedure described in Chapter 17.86 PTMC in that rather than being based upon a hardship or unusual circumstance related to a specific property, the approval of 16 alternative development standards proposed by a planned unit development shall be based upon the criteria listed in this section. In evaluating a planned development 17 which proposes to modify the development standards of the underlying use zone, the city shall consider and base its findings upon the ability of the proposal to satisfy the 18 following criteria: 19 (1) The proposed planned development shall be compatible with surrounding 20 properties, especially related to: a. Landscaping and buffering of buildings, parking, loading and storage 21 areas; b. Public safety; 22 c Site access, on-site circulation and off-street parking; d Light and shadow impacts; 23 e. Generation of nuisance irritants such as noise, smoke, dust, odor, glare, vibration or other undesirable impacts; 24 f. Architectural design of buildings and harmonious use of materials; 25 14. Criterion met. The criterion is met. As noted in the staff report, the 26 proposal improves upon general public safety in an area that currently only has partial city standard facilities. Architectural design of buildings and harmonious use of PUD, PP, CA p. 13 Findings, Conclusions and Decision The proposal 1 otherwise has adequate facilities and creates no adverse impacts for the reasons 2 identified in Findings of Fact No. 5 and 6. 3 (2) The unique characteristics of the subject property; 4 15. Criterion met. The criterion is met. The project site is unique in that it is extensively covered by wetlands and associated buffers. The Applicant has well 5 integrated these features into the project site by using them for both buffering to adjoining uses, critical areas protection, and project open space. The open space of 6 the project site is exceptionally unique in that it provides visual buffering on both sides of Rainier Street. 7 8 (3) The unique characteristics of the proposed use(s); 9 16. Criterion met. The criterion is met. The proposal provides for an extensive, unique trail system and an extensive amount of open space that provides 10 project residents with meaningful recreational facilities as well as a natural setting in a highly developed environment. 11 The proposed PUD modifications are compatible with the overall design of the 12 project site and its unique features. The private driveways serve a limited number of lots and an emergency vehicle turnaround is provided in them where required. The 13 lot size reduction and setback modifications are appropriate given the Critical Area 14 restrictions that encumber the site. The 45% lot coverage modification has been reviewed by the Applicants stormwater engineer and storm facilities sized 15 appropriately for both the lots and new roadways. 16 (4) The arrangement of buildings and open spaces as they relate to various uses within or adjacent to the planned development; 17 17. Criterion met. The criterion is met for the reasons identified in 18 Conclusions of Law No. 15 and 16. 19 (5) Visual impact of the planned development upon the surrounding area; 20 18. Criterion met. The criterion is met. As conditioned, the proposal provides 21 for substantial buffering to adjoining uses as outlined in Finding of Fact No. 5A. 22 (6) Public improvements proposed in connection with the planned development; 23 19. Criterion met. The proposal provides for adequate and appropriate public facilities and improvements as determined in Finding of Fact No. 6. 24 (7) Preservation of unique natural features of the property; 25 26 PUD, PP, CA p. 14 Findings, Conclusions and Decision 20. Criterion met. The criterion is met. The notable unique natural features of 1 the project site are its wetlands and the proposal preserves those features as required 2 by the Citys critical areas ordinance. 3 (8) The public benefit derived by allowing the proposed alteration of development standards. 4 21. Criterion met. The criterion is met for the reasons identified in Finding of 5 Fact No. 7. 6 Subdivision Criteria: 7 PTMC 18.16.060(A)(1): The proposed subdivision conforms to all applicable city, 8 state and federal zoning, land use, environmental and health regulations and plans, including, but not limited to, the following: 9 a. Port Townsend Comprehensive Plan; 10 b. Port Townsend Zoning Code; c. Engineering Design Standards; 11 d. Environmentally Sensitive Areas Ordinance (Chapter 19.05 PTMC): 12 22. Criterion met. The criterion is met. As determined in prior conclusions of 13 law, the proposal is consistent with all of the standards identified above. 14 PTMC 18.16.060(A)(2): Utilities and other public services necessary to serve the needs of the proposed subdivision shall be made available, including open spaces, 15 drainage ways, streets, alleys, other public ways, potable water, transit facilities, sanitary sewers, parks, playgrounds, schools, sidewalks and other improvements that 16 assure safe walking conditions for students who walk to and from school; 17 23. Criterion met. The criterion is met for the reasons identified in Finding of Fact No. 6. 18 19 PTMC 18.16.060(A)(3): Conservation of existing trees, and/or the planting of new trees, shall be provided consistent with Chapter 19.06 PTMC, Article III, Standards 20 For Tree Conservation; 21 24. Criterion met. The criterion is met for the reasons identified in Finding of Fact No. 5C. 22 PTMC 18.16.060(A)(4): The probable significant adverse environmental impacts of 23 the proposed subdivision, together with any practical means of mitigating adverse impacts, have been considered such that the proposal will not have an unacceptable 24 adverse effect upon the quality of environment, in accordance with Chapter 19.04 25 PTMC and Chapter 43.21C RCW; 26 PUD, PP, CA p. 15 Findings, Conclusions and Decision 25. Criterion met. As identified in Finding of Fact No. 5, a mitigated 1 determination of non-significance (MDNS) has been issued for the project in 2 conformance with Chapter 19.04 PTMC and Chapter 43.21C RCW. That review process included the required consideration of probable significant adverse 3 environmental impacts. 4 PTMC 18.16.060(A)(5): Approving the posed subdivision will serve the public use and interest and adequate provision has been made for the public health, safety, and 5 general welfare. 6 26. Criterion met. The criterion is met. As previously discussed, all significant adverse environmental impacts have been fully mitigated and several 7 public benefits are associated with the project that would not be required of a standard 8 subdivision. All infrastructure needs are also met for the project. For these reasons the criterion above is satisfied. 9 PTMC 18.16.060(B): Notwithstanding approval of criteria set forth in subsection a 10 of this section, in accordance with RCW 58.17.120, as now adopted and hereafter amended, the proposed subdivision may be denied because of flood, inundation or 11 swamp conditions . . . . 12 27. Criterion met. The criterion is met. There is no evidence of flood, inundation or swamp conditions. 13 14 Plat Vacation 15 RCW 58.17.212: . When the vacation application is specifically for a county road or city or town street, the procedures for road vacation or street vacation in chapter 16 36.87 or 35.79 RCW shall be utilized for the road or street vacation. When the application is for the vacation of the plat together with the roads and/or streets, the 17 procedure for vacation in this section shall be used, but vacations of streets may not be made that are prohibited under *RCW 35.79.030, and vacations of roads may not 18 be made that are prohibited under RCW 36.87.130. 19 The legislative authority of the city, town, or county shall give notice as provided in 20 RCW 58.17.080 and 58.17.090 and shall conduct a public hearing on the application for a vacation and may approve or deny the application for vacation of the 21 subdivision after determining the public use and interest to be served by the vacation of the subdivision. If any portion of the land contained in the subdivision was 22 dedicated to the public for public use or benefit, such land, if not deeded to the city, town, or county, shall be deeded to the city, town, or county unless the legislative 23 authority shall set forth findings that the public use would not be served in retaining title to those lands 24 25 28. Criterion Met. The criterion quoted above for approval of a plat vacation is met 26 by the proposal. The public use and interest is served by the vacation and associated replat as required by RCW 58.17.212. Vacation of the subdivision will enable a PUD, PP, CA p. 16 Findings, Conclusions and Decision greater number of lots in a manner that still conforms to the maximum density 1 standards of the underlying zone. As such, the Growth Management Act policies 2 encouraging urban densities and efficient use of infrastructure are better served with the vacation and associated replat, which is in the public interest. 3 4 Critical Areas Permit: 5 PTMC 19.05.050B4: Review Criteria. The director may approve with conditions, or 6 deny, any development proposal or regulated alteration in order to comply with the requirements and carry out the requirements of this chapter based on the following 7 criteria: 8 a. The proposal does not pose an unreasonable threat to the public health, safety, or welfare on or off the development proposal site; 9 b. The proposal minimizes the impact on critical areas in accordance with 10 mitigation sequencing in PTMC 19.05.060(A); 11 c. Any alterations permitted to the critical area are mitigated in accordance with 12 mitigation requirements in PTMC 19.05.060(B); 13 d. The proposal is consistent with best available science and results in no net loss of critical area functions and values; 14 e. The proposal meets the criteria in other applicable regulations and standards. 15 29. Criterion met. The criteria above are met. As outlined in Finding of Fact No. 16 5B, the proposal is found to be consistent with the Citys critical area regulations 17 (Chapter 19.05 PTMC), includes no alterations to critical areas, and will result in no net loss of ecological function. Further, the Citys critical area regulations are based 18 upon best available science so conformance to those standards without modification must be construed as consistent with best available science. 19 Type III General Permitting Criteria: 20 PTMC 20.01.235(D)(1): The development is consistent with the Port Townsend 21 Comprehensive Plan and meets the requirements and intent of the Port Townsend 22 Municipal Code; 23 30. Criterion met. As previously discussed, the project satisfies all applicable development standards and comprehensive plan policies. 24 PTMC 20.01.235(D)(2): The development is not detrimental to the public health, 25 safety and welfare; 26 PUD, PP, CA p. 17 Findings, Conclusions and Decision 31. Criterion met. Due to mitigation of all significant adverse environmental 1 impacts and the provision of several public benefits, the project is not detrimental to 2 the public health, safety and welfare. 3 PTMC 20.01.235(D)(3): The development adequately mitigates impacts identified under Chapters 19.04 (SEPA) and 19.05 (Environmentally Sensitive Areas) PTMC; 4 32. Criterion met. As previously determined, the proposal is consistent with 5 SEPA and the Citys critical areas ordinance. 6 PTMC 20.01.235(D)(4): For subdivision applications, findings and conclusions shall be issued in conformance with PTMC Title 18 and RCW 58.17.110. 7 8 33. The findings and conclusions have been issued in conformance with these applicable regulations. 9 10 DECISION 11 The proposed preliminary plat, PUD, street vacation and critical areas permit are all approved for the reasons identified in the Conclusions of Law, subject to the following conditions: 12 GENERAL 13 1.!Development shall be carried out in substantial conformance with the revised 14 preliminary Plat/Plat Vacation and PUD site plans, the PUD Narrative and Stormwater Report (Ex. A, B & D), and the preliminary Tree Conservation Plan 15 (Ex. E) except where modified by these conditions of approval or by the subsequent Street and Utility Development permit (SDP). The Plat Vacation 16 portion of this approval includes the alley in Blocks 2 and 3 of the Motorline th Addition together with all of the 16 St. right-of-way. 17 18 2.!All mitigations as set forth in the SEPA MDNS (Ex. I) are hereby considered conditions of preliminary Plat/ Plat Vacation and PUD approval. 19 3.!The Madrona Ridge approval includes the requested PUD modifications set forth 20 below: !Aside from Madrona Boulevard, all other public local access roadways would 21 T-8 street section as shown in Ex. B. The arrangement of street trees may be flexed as part of the Street and Utility 22 Development Permit process to achieve an attractive streetscape aesthetic and 23 efficient driveway arrangement. !Three (3) new private driveways serving a total of 14 lots. The road section width 24 !Reduced minimum lot sizes with a 3,600 sq. ft. minimum. 25 !Side yard setback reductions from a com 26 PUD, PP, CA p. 18 Findings, Conclusions and Decision !Front yard 1 in which case the front setback 2 !Maximum lot coverage permitted on all lots modified to allow 45%. !Relief from Daylight Plane requirements for new residential structures as 3 typically prescribed under PTMC 17.16.030D. 4 4.!The three (3) alleys shown on the revised preliminary Plat plans (Ex. B) will be privately maintained by the adjoining owners and/or HOA but they must also be 5 publicly accessible to non-motorized users where the driveways connect to open space trails. This maintenance obligation shall be placed into a set of Covenants, 6 and referenced in the resulting PUD 7 Agreement. 8 5.!An appropriate entity (e.g. a Homeowners Association; HOA) must be established as part of the final Plat/Plat Vacation and PUD review process and assigned 9 responsibility for on-going long term maintenance, liability and tax responsibility of all on-site, non-public amenities including but not limited to stormwater 10 facilities, open space Tracts and landscaping (including street trees and stormwater pond plantings), all non-hard surfaced trails which do not meet 11 approved City standards, and privately maintained underground utilities. The approved responsible entity must be acceptable to the City DSD Director and 12 referenced in all appropriate documents filed for recording that are associated 13 with the final Plat/Plat Vacation 14 6.!Tracts J thru O reserved for the multi-use Multi-Use pathway on the north side of Madrona Boulevard will be dedicated as public right-of-way maintained by the 15 Madrona Ridge HOA. A minimum 5 ft. building setback from the referenced Tracts must maintained (totaling 15 ft of setback from Madrona Blvd. ROW 16 which includes a 1 ft. separation from the edge of the Multi-Use Trail) and called out on the face of the Final Plat, the PUD Agreement and fina 17 however, as As with all sidewalks within the project, the abutting lot owners are responsible for cleaning of the non-motorized improvements per PTMC 18 12.12.030. 19 7.!Applicantto convey Tract D/Storm Pond 4 and Open Space Tract E to the 20 City is acceptable to the City, subject to certain terms. If both Tracts are conveyed to the City, an easement to the Madrona Ridge HOA shall be 21 established to provide the HOA with maintenance access to the outfall pipe and infiltration trench serving Tract B/Storm Pond 2. Any easement needed for the 22 Tract B/Storm Pond outfall and infiltration trench shall be prepared by the or review and approval by the City and 23 referenced on the face of the Final Plat. 24 8.!In the event Tract E is not conveyed to the City, then the Tract D/Storm Pond 4 25 area must be expanded by the Applicant infiltration trench. Public Works engineering staff have agreed that Rainier Street 26 thth runoff between 15 and 12 Streets can be accomplished via swales constructed PUD, PP, CA p. 19 Findings, Conclusions and Decision adjacent to the roadway. These will be made conditions of the Street and Utility 1 Development (SDP) review and approval process. 2 9.!The Applicant shall demonstrate to Public Works staff that adequate separation 3 between the existing fiber optic improvements in Tract F is available to accommodate multiple utilities (i.e., the required water main from the north 4 th line to 15 St.) If Tract F is unable to accommodate multiple utilities, the Applicant will nee 5 acceptable to Public Works and complete that installation as part of the approved Street and Utility Development Permit (SDP). 6 10.!The Applicant shall construct a shared Multi-Use pathway on the west side of 7 Rainier St. so it is continuous from north of the Discovery Rd. roundabout near thth 8 12 St. to 15 St. as offsite improvements along with Rainier St. Frontage improvements of sidewalk and a bike lane must also be installed across the entire th 9 project frontage between 15 St. and the north property line. 10 11.!The Applicant request for a slightly modified T-8 road City standard with sidewalk and landscaping all on one side of all 40 ft. wide rights of way streets is 11 approved in concept as shown on the submitted plans (Ex. B). Final locations for on-street parking will be determined as part of the subsequent Street and Utility 12 Development Permit (SDP) process. Staff will work with the Applicant to maintain flexibility with driveway placement to allow occasional parking on 13 either side of the street for traffic calming. 14 12.!Final Plat/Plat Vacation and PUD approval shall be presented by the Applicant as 15 required by municipal code and shall indicate the precise location of all required dedications, easements and open spaces per these conditions of approval. Interior 16 streets, sidewalks and trails within public easements shall be open to the public and signed accordingly at all times. All required infrastructure improvements as 17 set forth in these conditions and the subsequent Street and Utility Development permits must be installed or bonded for prior to final Plat/Plat Vacation and PUD 18 approval. 19 13.!The Applicant shall have applied for final Plat/Plat Vacation and PUD approval 3 20 within five (5) years of date preliminary approval. With the final Plat/Plat Vacation and PUD submittal, the Applicant shall propose a name for the new 21 roadway(s) to allow for review and approval by the appropriate public agencies (the City DSD, the Jefferson County Auditor and Assessor 22 14.!A draft Property Use and Development Agreement (PUDA) shall be submitted by 23 the Applicant (in electronic format) for review by DSD and Public Works a minimum of one month prior to submittal for final Plat/Plat Vacation and PUD 24 approval. The final PUDA shall be approved by the City Council as part of their final approval for the project. 25 3 w/‘ ЎБ͵ЊА͵ЊЍЉΛЌΜΛğΜ 26 PUD, PP, CA p. 20 Findings, Conclusions and Decision 1 2 PRIOR TO ISSUANCE OF BUILDING PERMITS 3 15.!The Applicant shall apply for and receive final Plat/Plat Vacation and PUD approval prior to the issuance of any building permits. To receive final Plat/Plat 4 Vacation and PUD approval, all required improvements set forth in the subsequent Street and Utility Development permit (street, driveway/fire lane, 5 utility) and the approved Final Landscaping Plan must be installed (with conveyance and acceptance by the City where applicable) or bonded for. The 6 amount of the performance security for any bonded items shall be based upon the current cost estimate of all materials and construction costs, including applicable 7 tax. The performance security shall consist of a performance bond in a form 8 acceptable to the City Attorney and in an amount acceptable to the Director and consistent with city code. Cash deposited in an escrow account may also be 9 accepted by the City. All required landscaping plantings shall be installed within six months of approving the performance security unless a longer period of time 10 is agreed to by the DSD Director. The preliminary landscaping plan shall be revised to include 10-foot landscaping along the western property line as 11 identified in Conclusion No. 7 of the staff report if not already included in the landscaping plan. 12 OTHER LANDSCAPING-RELATED CONDITIONS 13 16.!Prior to issuance of a Street and Utility Development permit (SDP) for the project, 14 the applicant shall prepare and submit a Final Landscaping and Tree Conservation Plan (TCP) for review and approval by the DSD Director. The use of canopy 15 cover calculations for the project is permitted for the TCP per PTMC 19.06; however, as a Planned Unit Development (PUD) some modest commitment to 16 tree planting on each individual lot as building permits are issued is warranted. The submitted Final Landscaping and TCP must be prepared with sufficient detail 17 on specific plant species, sizes, spacing and quantities to allow for adequate review by DSD. It must also include a proposed irrigation plan that will be 18 installed as part of the installation. The submitted plan must be prepared using a scale capable of being read without magnification of either the plan text or 19 planting area illustrations. The Final TCP must includes actual planting 20 calculations necessary for each resulting residential lot as required by PTMC 19.06 a commitment to planting at least one (1) tree unit credit (t.u.c.) per 21 residential lot. A notation on the face of the final Plat/Plat Vacation map as required by PTMC 19.06 will provide future purchasers with reference to the 22 resulting TCP requirements 23 17.!All required landscaping shall be continually maintained in a healthy growing condition by the Homeowner Association. Dead or dying trees, shrubs or 24 groundcover shall be replaced immediately, and the planting areas shall be routinely maintained. Revisions to the approved Landscaping Plan may also be 25 required if the Director determines that the installed landscaping has failed to 26 perform as designed. PUD, PP, CA p. 21 Findings, Conclusions and Decision 1 18.!For landscaping approved within the adjoining street rights-of-way and/or within 2 public easements or surrounding the 4 storm ponds, the Applicant shall provide a 3-year financial guarantee for their survivability. Trees or other approved 3 plantings that die or become diseased within the guarantee period shall be replaced and shall initiate a subsequent 3-year period starting on the date of 4 replacement. 5 PRIOR TO ROADWAY, PATHWAY AND INFRASTRUCTION CONSTRUCTION 6 19.!To ensure compliance with City Engineering Design Standards, together with the public and private street and utility installations required by this decision, the 7 following plans must be prepared and submitted with a completed application for 8 a Street and Utility Development Permit (SDP). These plans shall be in substantial in conformance with the preliminary drawings submitted as part of the 9 application (Ex. B) except where modified by thee approval conditions. These plans must be submitted, reviewed and approved by City engineering staff, and 10 constructed or bonded for prior to final approval of any phase of the development. 11 a. Engineered plans for the public streets, private driveways and fire lane turnarounds serving this project including but not limited to the location of all 12 driveways, turn around areas, sidewalks , and drainage facilities. b. Engineered plans for water service and sewer service for the project including 13 provisions for fire hydrant(s) and compliance with Condition . Tract F: Utility 14 easement from the north, west of Lot 145, that presently contains a fiber optic line. Staff notes this utility easement was intended to be occupie 15 main running north to south through the site (Ex. F) that is c Water System Plan (WSP). If Public Works staff determines there is inadequate 16 separation between the fiber optic improvements and the preferred water main route to accommodate multiple utilities in Tract F, the Applicant will need to 17 le to Public Works. 18 c. A final engineered stormwater drainage plan and report including 19 construction drawings complying with the requirements of the Puget Sound 20 Stormwater Management Manual and the Port Townsend Engineering Design standards must be submitted to DSD and approved by the Public Works 21 Department prior to issuance of any building permits. Said plan and report shall include detailed operation and maintenance (O & M) provisions for the completed 22 facilities which will become a responsibility of the Madrona Ridge HOA to ensure. Once approved by City engineering staff, the O&M provisions must be 23 formatted by the applicant (or their engineer) in a manner which facilitates their incorporation into the required Planned Unit Development Agreement (PUDA) 24 d. A final engineered non-motorized trail plan meeting all applicable 25 requirements of City-adopted plans (Non-Motorized Transportation and 26 Engineering Design Standards) and the plans approved by this decision. The non- th motorized trail constituting the Loop Trail system (in 15 St. to PUD, PP, CA p. 22 Findings, Conclusions and Decision Rainier and along the north side of Madrona Blvd.) shall be paved and meet the 1 standards of the Parks Recreation and Open Space Plan. All other trails shall be 2 maintained by the Homeowners Association. Conditions related within and around wetland buffers also apply See Below Section on CRITICAL AREA 3 PERMIT CONDITIONS 4 The Final Non-Motorized Plan shall include a continuous pedestrian connection on the west side of Rainer St. between the Rainier/Discovery roundabout and the 5 th project south property line at 15 St. Staff has recommended that the shared Multi-Use pathway on the west side of Rainier St. be constructed by the Applicant 6 th so it is continuous from north of the Discovery Rd. roundabout near 12 St. to th 15 St. as offsite improvements along with the proposed Rainier St. frontage 7 improvements of sidewalk and a bike lane across the entire project frontage th 8 between the north property line and 15 St. Staff also recommends installation th of a crossing to the east side of Rainier St. at 15 St. which is already improved 9 asphalt Multi-Use pathway. 10 20.!Street lighting shall be dark sky compliant and minimized in conformance with the City's Street lighting policy (Ordinance 3271). 11 CONDITIONS RELATED TO THE PLAT/PLAT VACATION 12 21.!The applicant shall provide a mylar reproduction of the Plat/Plat Vacation to DSD for review and approval (5 paper copies and one electronic .pdf version) as part of 13 the final Plat/Plat Vacation and PUD approval process. Said mylar shall contain 14 the acknowledged signatures of all parties having an ownership interest in the subject property as evidenced by a plat certificate prepared by a local title 15 company. Said plat certificate, or any update provided, shall be less than 30 days old. The approved Plat/Plat Vacation shall not become effective until the mylars 16 required for recording have been filed with the Jefferson County Auditor. While the City will assist in recording the Plat/Plat Vacation mylar, the Applicant is 17 responsible for all fees associated with recording. All property taxes due and owing on the subject property must be paid in full prior to obtaining the signature 18 of the Jefferson County Treasurer. The location of critical areas and their buffers shall be depicted on final mylars. 19 20 OTHER/ONGOING CONDITIONS 22.!No road approaches onto Madrona Blvd. are permitted unless otherwise approved 21 by the Public Works Dept. Lots 21, 30, 39, 59 through 68, 91, 92, 97, 105, 113, 121, 129, 137 and 167 shall all gain veh 22 23.!Future occupancy of any units shall be subject to all applicable provisions of the 23 Port Townsend Municipal Code (PTMC), including zoning, subdivision and the Engineering Design Standards. 24 24.!Four (4) existing and recorded easements encumber the site (AFN 240372, 25 312280, 449206, 596561) and are shown on the submitted site plans (Ex. B). 26 PUD, PP, CA p. 23 Findings, Conclusions and Decision 25.!AFN 240372 contains a fiber optics line runs north to south through the western 1 portion of the site. Circumstances surrounding this easement and the need for 2 water system improvements in the vicinity were described in Condition 17.b. As shown, this easement would also render two (2) proposed lots (Lots 53 and 64) 3 unbuildable unless those improvements are relocated or the 2 lots reconfigured. The Applicants bears responsibility to work with the underlying beneficiary of 4 be eliminated or reconfigured within the Plat. 5 26.!As a public easement, AFN 596561 will be converted to dedicated right-of-way 6 th along 15 St. and can be extinguished as such as part of the final Plat/Plat Vacation and PUD approval process. Similarly, AFN 449206 - which is a private 7 access & utility easement can be released by the underlying owner during final 8 project processing. 9 27.!AFN 312280 usive access and utility easement running along the southwest project boundary. This easement appears to benefit other properties 10 outside of the Plat/Plat Vacation. The preliminary Plat map indicates this easement will be extinguished. Fortunately, AFN 312280 does not encumber any 11 of the proposed residential lots; however, as part of final Plat/Plat Vacation and 12 PUD processing, the Applicant must demonstrate all easement beneficiaries have agreed to it being released and/or extinguished or any conflicting improvements 13 must be relocated outside of the easement area. 14 28.!If the proponent proposes to add any development signage, it may be necessary to obtain a sign permit. Please contact the DSD Department for signage 15 requirements prior to ordering, fabricating or installing any signs. 16 CRITICAL AREA PERMIT CONDITIONS 17 29.!A Monitoring and contingency plan will be required to ensure success of the re- seeding of the wetland buffer. The applicant shall post a performance bond in the 18 amount of 120 percent of the expected cost. Mitigation shall not be implemented until after the department approves the site mitigation and monitoring plan. The 19 applicant shall notify the department when mitigation is installed, and monitoring is commenced and shall provide the city with reasonable access to the mitigation 20 for the purpose of inspections during the monitoring period. 21 30.!All construction activities shall comply the Engineering Design Standards and 22 employ Best Management Practices to control erosion/sedimentation. 23 31.!Applicants shall indicate erosion control measures on the site construction plan or stormwater control management plan, as appropriate for the project. These 24 requirements shall be in place following the preconstruction meeting outlined in PTMC 19.05.040(F)(1)(k)(I) and shall be reviewed and approved prior to clearing 25 and grading. 26 PUD, PP, CA p. 24 Findings, Conclusions and Decision 32.The trail proposed around Wetland C-3 must belocated to the outer 25% of this 1 2 avoid impacting any trees and limit impacts to soil, hydrologic features, shrubs, and habitat features. 3 4 Dated this 28th day of March2022. 5 ________________________________ Phil Olbrechts 6 City of Port Townsend Hearing Examiner 7 Appeal Right and Valuation Notices 8 This land use decision is final and subject to appeal to superior court as governed by 9 Chapter 36.70C RCW. Appeal deadlines are short and procedures strictly construed. Anyone wishing to file a judicial appeal of this decision should consult with an attorney 10 to ensure that all procedural requirements are satisfied. 11 Affected property owners mayrequest a change in valuation for property tax purposes notwithstanding any program of revaluation. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 PUD, PP, CAp.25Findings, Conclusions and Decision City Response CompleteComplete Applicant Response All site devleopment will conform with the approved PUD site plans and appurtenant exhibits as well as the civil plans approved under SDP24-043 andSDP24-044.Acknowledged. Please see specific mitigation conditions below. Condition Development shall be carried out in substantial conformance with the revised preliminary Plat/Plat Vacation and PUD site plans, the PUD Narrative and Stormwater Report (Ex. A, B & D), and the preliminary Tree Conservation Plan (Ex. E) except where modified by these conditions of approval or by the subsequent Street and Utility Development permit (SDP). The Plat Vacation portion of this approval includes the alley in Blocks 2 and 3 of the Motorline Addition together with all of the 16th St. right-of-way.All mitigations as set forth in the SEPA MDNS (Ex. I) are hereby considered conditions of preliminary Plat/ Plat Vacation and PUD approval.The Madrona Ridge approval includes the requested PUD modifications set forth below: # 123 Conditions Compliance Matrix Madrona Rodge Phase 2 LUP25-059.City File Nos. LUP21-064 and LUP21-066 though LUP21-068 Decision Issued March 28, 2022 General Complete The applicant agrees with the PUD modifications described above with the garages only applies to the garage, not the Aside from Madrona Boulevard, all other public local access section as shown in Ex. B. The arrangement of street trees may be flexed as part of the Street and Utility Development Permit process to achieve an attractive streetscape aesthetic and efficient driveway arrangement. Three (3) new private driveways serving a total of 14 lots. The Reduced minimum lot sizes with a 3,600 sq. ft. minimum. Maximum lot coverage permitted on all lots modified to allow 45%. Relief from Daylight Plane requirements for new residential structures as typically prescribed under PTMC 17.16.030D. CompleteComplete Maintenance obligations of the shared access tracts for all phases will be the responsibility of the HOA and are described in the CC&Rs and PUD agreement.An HOA has been formed and assigned responsibilities as described above. HOA documents, including CC&Rs have been provided to the City for review and approval. The CC&Rs have been recorded under #670678. The three (3) alleys shown on the revised preliminary Plat plans (Ex. B) will be privately maintained by the adjoining owners and/or HOA but they must also be publicly accessible to non-motorized users where the driveways connect to open space trails. This maintenance obligation shall be placed into a set of Covenants, Conditions and An appropriate entity (e.g. a Homeowners Association; HOA) must be established as part of the final Plat/Plat Vacation and PUD review process and assigned responsibility for on-going long term maintenance, liability and tax responsibility of all on-site, non-public amenities including but not limited to stormwater facilities, open space Tracts and landscaping (including street trees and stormwater pond plantings), all non-hard surfaced trails which do not meet approved City standards, and privately maintained underground utilities. The approved responsible entity must be acceptable to the City DSD Director and referenced in all appropriate documents filed for recording that are associated with the final Plat/Plat Vacation. 45 CompleteComplete Tracts J through O were included in Phase 1 and will be maintained by the HOA.Tract E and D have been conveyed to the City with Phase 1. The deed was recorded under number 670681. Tracts J thru O reserved for the multi-use Multi-Use pathway on the north side of Madrona Boulevard will be dedicated as public right-of-way maintained by the Madrona Ridge HOA. A minimum 5 ft. building setback from the referenced Tracts must maintained (totaling 15 ft of setback from Madrona Blvd. ROW which includes a 1 ft. separation from the edge of the Multi-Use Trail) and called out on however, as As with all sidewalks within the project, the abutting lot owners are responsible for cleaning of the non-motorized improvements per PTMC 12.12.030.Tract E to the City is acceptable to the City, subject to certain terms. If both Tracts are conveyed to the City, an easement to the Madrona Ridge HOA shall be established to provide the HOA with maintenance access to the outfall pipe and infiltration trench serving Tract B/Storm Pond 2. Any easement needed for the Tract B/Storm Pond outfall and infiltration trench shall be prepared by the Applicant or referenced on the face of the Final Plat. 67 CompleteComplete Not applicable, Tract D and Tract E will be conveyed to the City.Acknowledged, please refer to Sheet 10 under permit SDP 24-043. In the event Tract E is not conveyed to the City, then the Tract D/Storm Pond 4 area must be expanded by the Applicant to include engineering staff have agreed that Rainier Street runoff between 15th and 12th Streets can be accomplished via swales constructed adjacent to the roadway. These will be made conditions of the Street and Utility Development (SDP) review and approval process.The Applicant shall demonstrate to Public Works staff that adequate separation between the existing fiber optic improvements in Tract F water main from the north line to 15th St.). If Tract F is unable to accommodate multiple utilities, the Applicant will need to propose an and complete that installation as part of the approved Street and Utility Development Permit (SDP). 89 CompleteComplete A Multi-Use pathway has been constructed along the west side of Rainier Street with Phase 1 per the approved civil plans under permit SDP 24-043. Please see Sheets 57 for Rainier Street cross sections.Acknowledged. Please refer to the approved civil plans under permit SDP 24-043, Sheet 56, for relevant street sections. The Applicant shall construct a shared Multi-Use pathway on the west side of Rainier St. so it is continuous from north of the Discovery Rd. roundabout near 12th St. to 15th St. as offsite improvements along with Rainier St. Frontage improvements of sidewalk and a bike lane must also be installed across the entire project frontage between 15th St. and the north property line.with sidewalk and landscaping all on one side of all 40 ft. wide rights of way streets is approved in concept as shown on the submitted plans (Ex. B). Final locations for on-street parking will be determined as part of the subsequent Street and Utility Development Permit (SDP) process. Staff will work with the Applicant to maintain flexibility with driveway placement to allow occasional parking on either side of the street for traffic calming. 1011 CompleteCompleteComplete The Final Plat/Plat Vacation and PUD approval is in substantial compliance with the approved Preliminary Plat of record and meets all Conditions of Approval from the March 28, 2022 Hearing Examiner Decision and the August 11, 2022 Minor Modification decision. All improvements are constructed or bonded.Acknowledged. New streets include Windsong Way, Adventuress Drive, Savona Street, and Martha Court and are shown on the final plat.Acknowledged. The PUDA was submitted with Phase 1 and recorded under number 670679. Final Plat/Plat Vacation and PUD approval shall be presented by the Applicant as required by municipal code and shall indicate the precise location of all required dedications, easements and open spaces per these conditions of approval. Interior streets, sidewalks and trails within public easements shall be open to the public and signed accordingly at all times. All required infrastructure improvements as set forth in these conditions and the subsequent Street and Utility Development permits must be installed or bonded for prior to final Plat/Plat Vacation and PUD approval.The Applicant shall have applied for final Plat/Plat Vacation and PUD approval within five (5) years of date preliminary approval. With the final Plat/Plat Vacation and PUD submittal, the Applicant shall propose a name for the new roadway(s) to allow for review and approval by the appropriate public agencies (the City DSD, the A draft Property Use and Development Agreement (PUDA) shall be submitted by the Applicant (in electronic format) for review by DSD and Public Works a minimum of one month prior to submittal for final Plat/Plat Vacation and PUD approval. The final PUDA shall be approved by the City Council as part of their final approval for the project. 121314 Prior to Issuance of Building Permits Complete Acknowledged. All improvements will be constructed or bonded prior to final approvals. 1 and 3 of the landscape set and as Tract U in the final plat map. The Applicant shall apply for and receive final Plat/Plat Vacation and PUD approval prior to the issuance of any building permits. To receive final Plat/Plat Vacation and PUD approval, all required improvements set forth in the subsequent Street and Utility Development permit (street, driveway/fire lane, utility) and the approved Final Landscaping Plan must be installed (with conveyance and acceptance by the City where applicable) or bonded for. The amount of the performance security for any bonded items shall be based upon the current cost estimate of all materials and construction costs, including applicable tax. The performance security shall consist of a performance bond in a form acceptable to the City Attorney and in an amount acceptable to the Director and consistent with city code. Cash deposited in an escrow account may also be accepted by the City. All required landscaping plantings shall be installed within six months of approving the performance security unless a longer period of time is agreed to by the DSD Director. The preliminary landscaping plan shall be revised to include 10-foot landscaping along the western property line as identified in Conclusion No. 7 of the staff report if not already included in the landscaping plan. 15 Other Landscaping-Related Conditions Complete The final plat Title Notes # 10 references the property use and development agreement recorded under AFN670679, which requires the tree unit credit. Prior to issuance of a Street and Utility Development permit (SDP) for the project, the applicant shall prepare and submit a Final Landscaping and Tree Conservation Plan (TCP) for review and approval by the DSD Director. The use of canopy cover calculations for the project is permitted for the TCP per PTMC 19.06; however, as a Planned Unit Development (PUD) some modest commitment to tree planting on each individual lot as building permits are issued is warranted. The submitted Final Landscaping and TCP must be prepared with sufficient detail on specific plant species, sizes, spacing and quantities to allow for adequate review by DSD. It must also include a proposed irrigation plan that will be installed as part of the installation. The submitted plan must be prepared using a scale capable of being read without magnification of either the plan text or planting area illustrations. The Final TCP must includes actual planting calculations necessary for each resulting residential lot as required by PTMC 19.06 a commitment to planting at least one (1) tree unit credit (t.u.c.) per residential lot. A notation on the face of the final Plat/Plat Vacation map as required by PTMC 19.06 will provide future purchasers with reference to the resulting TCP requirements 16 CompleteComplete The HOA is responsible for maintaining the health and appearance of common area landscaping.A landscaping maintenance bond has beenprovided in accordance with City standards. All required landscaping shall be continually maintained in a healthy growing condition by the Homeowner Association. Dead or dying trees, shrubs or groundcover shall be replaced immediately, and the planting areas shall be routinely maintained. Revisions to the approved Landscaping Plan may also be required if the Director determines that the installed landscaping has failed to perform as designed.For landscaping approved within the adjoining street rights-of-way and/or within public easements or surrounding the 4 storm ponds, the Applicant shall provide a 3-year financial guarantee for their survivability. Trees or other approved plantings that die or become diseased within the guarantee period shall be replaced and shall initiate a subsequent 3-year period starting on the date of replacement. 1718 Prior to Roadway, Pathway and Infrastructure Construction CompleteComplete Civil engineering plans (SDP 24-043) were approved on June 13, 2024. a. Engineered plans for the public streets, private driveways and fire lane turnarounds serving this project including but not limited to the location of all driveways, turn around areas, sidewalks, and drainage facilities. To ensure compliance with City Engineering Design Standards, together with the public and private street and utility installations required by this decision, the following plans must be prepared and submitted with a completed application for a Street and Utility Development Permit (SDP). These plans shall be in substantial in conformance with the preliminary drawings submitted as part of the application (Ex. B) except where modified by thee approval conditions. These plans must be submitted, reviewed and approved by City engineering staff, and constructed or bonded for prior to final approval of any phase of the development. 19 Complete This issue was resolved with the approved civil engineering plans (SDP 24-043) were approved on June 13, 2024. b. Engineered plans for water service and sewer service for the project including provisions for fire hydrant(s) and compliance with Condition . Tract F: Utility easement from the north, west of Lot 145, that presently contains a fiber optic line. Staff notes this running north to south through the site (Ex. F) that is called for in determines there is inadequate separation between the fiber optic improvements and the preferred water main route to accommodate multiple utilities in Tract F, the Applicant will need acceptable to Public Works. Complete Civil engineering plans (SDP 24-043) including Stormwater Report were approved on June 13, 2024. The O&M is included with this submittal c. A final engineered stormwater drainage plan and report including construction drawings complying with the requirements of the Puget Sound Stormwater Management Manual and the Port Townsend Engineering Design standards must be submitted to DSD and approved by the Public Works Department prior to issuance of any building permits. Said plan and report shall include detailed operation and maintenance (O & M) provisions for the completed facilities which will become a responsibility of the Madrona Ridge HOA to ensure. Once approved by City engineering staff, the O&M provisions must be formatted by the applicant (or their engineer) in a manner which facilitates their incorporation into the required Planned Unit Development CompleteComplete The non-motorized trail plan was included in the civil plans (SDP 24-043) that were approved on June 13, 2024. Please see Sheets 56 & 57 of the approved civil plans under permit SDP 24-043 for on- and off-site street sections.All street lights have full cutoff lenses. d. A final engineered non-motorized trail plan meeting all applicable requirements of City-adopted plans (Non-Motorized Transportation and Engineering Design Standards) and the plans approved by this decision. The non-motorized trail constituting the north side of Madrona Blvd.) shall be paved and meet the standards of the Parks Recreation and Open Space Plan. All other trails shall be maintained by the Homeowners Association. See Below Section on CRITICAL AREA PERMIT CONDITIONS The Final Non-Motorized Plan shall include a continuous pedestrian connection on the west side of Rainer St. between the Rainier/Discovery roundabout and the project south property line at 15th St. Staff has recommended that the shared Multi-Use pathway on the west side of Rainier St. be constructed by the Applicant so it is continuous from north of the Discovery Rd. roundabout near 12th St. to 15th St. as offsite improvements along with the proposed Rainier St. frontage improvements of sidewalk and a bike lane across the entire project frontage between the north property line and 15th St. Staff also recommends installation of a crossing to the east side of Rainier St. at 15th St. which is already improved asphalt Multi-Use pathway. Street lighting shall be dark sky compliant and minimized in conformance with the City's Street lighting policy (Ordinance 3271). 20 CompleteComplete Noted, a Mylar of Phase 2 will be provided after review by the City, once requested. The process for Phase 2 will follow that of Phase 1 which recorded under AFN #670677. Acknowledged. The plat has been revised to eliminate vehicular access from homesites directly onto Madrona. All lots gain vehicular The applicant shall provide a mylar reproduction of the Plat/Plat Vacation to DSD for review and approval (5 paper copies and one electronic .pdf version) as part of the final Plat/Plat Vacation and PUD approval process. Said mylar shall contain the acknowledged signatures of all parties having an ownership interest in the subject property as evidenced by a plat certificate prepared by a local title company. Said plat certificate, or any update provided, shall be less than 30 days old. The approved Plat/Plat Vacation shall not become effective until the mylars required for recording have been filed with the Jefferson County Auditor. While the City will assist in recording the Plat/Plat Vacation mylar, the Applicant is responsible for all fees associated with recording. All property taxes due and owing on the subject property must be paid in full prior to obtaining the signature of the Jefferson County Treasurer. The location of critical areas and their buffers shall be depicted on final mylars.No road approaches onto Madrona Blvd. are permitted unless otherwise approved by the Public Works Dept. Lots 21, 30, 39, 59 through 68, 91, 92, 97, 105, 113, 121, 129, 137 and 167 shall all gain 2122 Conditions Related to the Plat/Plat VacationOther/Ongoing Conditions CompleteCompleteComplete Acknowledged. Certificates of Occupancy will not be granted without complying with all applicable codes and standards.Applicant is seeking relinquishment of AFN 312280. AFNs 240372 and 596561 have been resolved as part of Phase 1. AFN 449206 was released via AFN 670093. This has been resolved as part of Phase 1. Future occupancy of any units shall be subject to all applicable provisions of the Port Townsend Municipal Code (PTMC), including zoning, subdivision and the Engineering Design Standards.Four (4) existing and recorded easements encumber the site (AFN 240372, 312280, 449206, 596561) and are shown on the submitted site plans (Ex. B).AFN 240372 contains a fiber optics line runs north to south through the western portion of the site. Circumstances surrounding this easement and the need for water system improvements in the vicinity were described in Condition 17.b. As shown, this easement would also render two (2) proposed lots (Lots 53 and 64) unbuildable unless those improvements are relocated or the 2 lots reconfigured. The Applicants bears responsibility to work with the underlying otherwise these 2 lots must be eliminated or reconfigured within the Plat. 232425 CompleteCompleteComplete Acknowledged. The applicant will extinguish AFN 596561 and AFN 449206 as part of the Final Plat/Plat Vacation approval process recorded under APN 670677 on April 1, 2025.Acknowledged, the easement will be extinguished.Acknowledged. As a public easement, AFN 596561 will be converted to dedicated right-of-way along 15th St. and can be extinguished as such as part of the final Plat/Plat Vacation and PUD approval process. Similarly, AFN 449206 - which is a private access & utility easement can be released by the underlying owner during final project processing.running along the southwest project boundary. This easement appears to benefit other properties outside of the Plat/Plat Vacation. The preliminary Plat map indicates this easement will be extinguished. Fortunately, AFN 312280 does not encumber any of the proposed residential lots; however, as part of final Plat/Plat Vacation and PUD processing, the Applicant must demonstrate all easement beneficiaries have agreed to it being released and/or extinguished or any conflicting improvements must be relocated outside of the easement area.If the proponent proposes to add any development signage, it may be necessary to obtain a sign permit. Please contact the DSD Department for signage requirements prior to ordering, fabricating or installing any signs. 262728 Critical Area Permit Conditions CompleteCompleteComplete A Monitoring and Contingency plan will be provided for the wetland buffer and a performance bond will be submitted in accordance with City standards.Site development complies with the erosion control plans approved under SDP 24-043 and SDP 24-044 and all applicable City standards.Please see Sheets 14-18 of the civil plans approved under SDP 24-043 for erosion control details. A Monitoring and contingency plan will be required to ensure success of the re-seeding of the wetland buffer. The applicant shall post a performance bond in the amount of 120 percent of the expected cost. Mitigation shall not be implemented until after the department approves the site mitigation and monitoring plan. The applicant shall notify the department when mitigation is installed, and monitoring is commenced and shall provide the city with reasonable access to the mitigation for the purpose of inspections during the monitoring period.All construction activities shall comply the Engineering Design Standards and employ Best Management Practices to control erosion/sedimentation.Applicants shall indicate erosion control measures on the site construction plan or stormwater control management plan, as appropriate for the project. These requirements shall be in place following the preconstruction meeting outlined in PTMC 19.05.040(F)(1)(k)(I) and shall be reviewed and approved prior to clearing and grading. 293031 CompleteCompleteComplete The trail was modified after the preliminary plat approval and December 23, 2021 Wetland Report and Mitigation Plan to be location in the outer 25% of the wetland buffer. The location was reviewed under the approved civil plans SDP 24-043. The current Wetland Mitigation Plan continues to show the trail in the outer 25% of the regulated wetland buffer width.This plat complies with all Conditions of Approval from the Hearing Examiners Decision dated March 28, 2022 and the Minor Amendment decision dated August 11, 2022.A Monitoring and Contingency plan will be implemented to mitigate wetland impacts in accordance with required City procedures. The trail proposed around Wetland C-3 must be located to the outer located in such a way to avoid impacting any trees and limit impacts to soil, hydrologic features, shrubs, and habitat features.Except as modified by this decision and detailed in Exhibit E Applicant Response to staff's July 27,2022, email dated August 3,2022, and Exhibit F Revised Phasing dated August 3, 2022, the developer shall comply with all conditions of approval set forth in the Hearings Examiner Decision (Exhibit C).Condition #29 of the Hearings Examiner Decision requires implementation of a monitoring and contingency plan to mitigate for wetland impacts. Restoration will take place with each respective phase and will trigger a maintenance bond for each. 12 32 Minor PUD/Plat Modification City File No. LUP22-045 Decision Issued August 11, 2022 CompleteCompleteComplete Acknowledged. No other PUD modifications are intended at this time. Site development and home construction both adhere to the recommendations of the 2021 Aspect Engineering geoteechnical report.Applicant has communicated with trade partners about the possibility of inadvertent discovery of historical and cultural resources. All construction activities would be suspended in the event of inadvertent discovery. All modifications shall be documented of record in the Phase I and Phase ll Final Plats and planned unit development agreement or otherwise as determined by the director, in a form prepared by the applicant and approved by the director and recorded at the applicant's cost.All recommendations of the Applicant's geo-technical report (Ex. H) must be adhered to during both the infrastructure and future home construction phases. Staffs recommendation to the Hearing Examiner will specify those measures be included in the resulting Planned Unit Development (PUD)Agreement and any Restrictive Covenants, CC&R's or similar privately established agreements.lf historic or cultural resources are discovered during clearing, grading, site excavation, or other construction activities, work shall be stopped immediately and the DSD Director and the State Historic Preservation Officer shall be contacted. Work could not resume until approval is obtained from the Development Services Department. 312 SEPA MDNS Required Mitigation Measures City File No. LUP21-067 Issued January 19, 2022 During Construction Complete The exterior lighting specification for this community is an ambient shielded coach light. All exterior building mounted lights shall be hooded or shielded, flat lenses and pointed downward. The use of mercury vapor or halogen lighting on the exterior of any structure is prohibited. Revisions to the exterior lighting on any resulting dwelling may be required if the DSD Director determines that installed lighting fails to meet the above performance standards. These lighting restrictions shall be placed into the PUD Agreement and any Restrictive Covenants, CC&R's or similar privately established agreements to ensure the exterior lighting limitations are provided to potential purchasers. 3 Complete Acknowledged. All open space tracts include public pedestrian easements, and the HOA is responsible for maintenance of facilities within those tracts. The Applicant, through a subsequent Homeowners Association (HOA), is responsible for maintenance of all open spaces required through the PUD process as well as for all publicly accessible trails not improved to a City-adopted hard surfaced standard and located within a public dedication (i.e., right-of-way or public easement). The final PUD Agreement for Madrona Ridge must include language acknowledging this requirement together with adequate provisions governing their on-going maintenance. The form and content of these maintenance obligations shall be prepared by the Applicant and submitted to DSD for review and approval, in concert with the Public Works Department and the City Attorney. All public trails shall be signed consistent with the City's Non-Motorized Transportation Plan as part of the SDP approval process. 4 Agenda Bill AB26-068 Meeting Date: June15, 2026 Agenda Item:consent VII.D Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Jodi Adams, Finance and Technology Services Director Date Submitted: June 10, 2026 Department:Finance Contact Phone:360-379-4403 SUBJECT: 2026 First Quarter Financial Reports CATEGORY: BUDGET IMPACT: 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: N/A SUMMARY STATEMENT: The First Quarter Financial Report for 2026 provides a summary of the City’s financial activity through March 31, 2026. Overall financial performance remains on target for the first quarter. However, certain tax revenues are projected to come in slightly below year- end budget expectations. Finance staff will continue to monitor revenue trends closely and will provide a more comprehensive assessment of revenue projections in the Second Quarter Financial Report. City reserves continue to remain strong and within established policy parameters, maintaining the City’s solid financial position. As of March 31, 2026, year-to-date expenditures represent 11% of the adopted budget, while revenues account for 14% of budgeted amounts. These results are consistent with expectations for this stage of the fiscal year and are comparable to first-quarter performance in 2025. ATTACHMENTS: 2026 Q1 2026 Financial Report CITY COUNCIL COMMITTEE RECOMMENDATION: Move to add to next council meeting on consent agenda. RECOMMENDED ACTION: No Action Required ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: DPOUFOUT Hfofsbm!Gvoe!Pwfswjfx//////////3 Qbzspmm!cz!Gvoe//////////4 Hfofsbm!Gvoe!Cbmbodf//////////5 Hfofsbm!Gvoe.Ubyft//////////6 Hfofsbm!Gvoe!.Opo.Uby!Sfwfovft//////////7 Tbmft!Uby//////////8 Qspqfsuz!Uby//////////: Qvcmjd!Vujmjuz!Uby//////////22 Cvtjoftt!'!Pddvqbujpo!Uby//////////23 Sfbm!Ftubuf!Fydjtf!Uby//////////24 Mpehjoh!Uby//////////25 Xbufs!Vujmjuz!Sfwfovf//////////26 Tfxfs!Vujmjuz!Sfwfovf//////////27 Tupsn!Vujmjuz!Sfwfovf//////////28 Pmznqjd!Hsbwjuz!Xbufs!Tztufn!Sfwfovf//////////29 Dbqjubm!Gvoet//////////2: Bmm!Gvoet//////////32 Jowftunfout//////////34 Efcu!Tfswjdf//////////35 City of Port Townsend Page 1 1st Quarter Financial Report ~ 2026 HFOFSBM!GVOE!PWFSWJFX! Year-to-Date through March 31, 2026 Under GASB, the General Fund is a governmental fund, meaning it is primarily supported by taxes. It is the City’s largest fund and includes the most departments and FTEs. Its primary purpose is to support the City’s essential day-to-day operations. 2024202520262026 2026 % of 2026 Budget Budget ActualActualActual Budgeted Remaining 6,529,427 5,586,715 5,027,209 5,027,209 Taxes Other Financing Sources Charges for Services Licenses and Permits Miscellaneous Receipts Intergovernmental Other Incr. in Fund Resources Fines and Forfeits Operating Transfers In 3,267,936 3,441,511 3,256,135 15,668,364 12,412,22921% Expenditure Payroll Expense Operating Transfer Capital Expenditure Debt Service 4,286,137 4,294,963 4,220,321 18,578,894 14,358,57377% Note: Full-Year lines (Beginning/Ending Fund Balance, Reserve Policy) use full-year actuals for 2024 & 2025. For 2026 (in progress), these reflect YTD Q1 only. Net Change is YTD Q1 for all years. 20242025202620262026 % Remaining Budget 2026 Budget ActualActualActual Budgeted Remaining P.E.G. Acess Studio Fund Equity & Transactions Non-departmental Mayor & Council City Manager City Attorney Communications Human Resources DSD Finance Dept Police Admin Police Operations Police Training City Clerk Contracts 4,286,137 4,294,963 4,220,321 18,578,894 14,358,57377% City of Port Townsend Page 2 1st Quarter Financial Report ~ 2026 QBZSPMM!CZ!GVOE Year-to-Date through March 31, 2026 Below are the payroll accounts, with activity to date and budget remaining. Payroll Expenditures Year-to-date thru March 20262026 General Fund YTD ExpendituresBudgetedBudget Remaining% Remaining 18,674 74,915 56,24175% Mayor & Council 78,860 328,777 249,91776% City Manager 84,463 352,409 267,94676% City Attorney 21,084 132,167 111,08484% Communications 95,913 403,760 307,84776% Human Resources 264,151 1,214,614 950,46378% DSD 312,875 1,372,386 1,059,51177% Finance Dept 211,252 911,853 700,60177% Police Admin 522,538 2,255,323 1,732,78577% Police Operations 43,526 181,670 138,14476% City Clerk Total General Fund 1,653,337 7,227,874 5,574,53777% 60,729 308,463 247,73480% Street Maintenance Total Streets 60,729 308,463 247,73480% 183,681 730,301 546,62075% Library Total Library 183,681 730,301 546,62075% 37,316 111,000 73,68466% Lodging Tax Total Lodging 37,316 111,000 73,68466% 32,038 123,615 91,57774% Non-departmental 133,334 600,962 467,62878% City Facilities 129,240 646,996 517,75680% Parks Maintenance - - -0% Parks Strategy 16,414 66,784 50,37075% Arts Total Community Services 311,026 1,438,357 1,127,33178% 183,150 901,399 718,25080% Water Dist Operations 136,149 548,887 412,73875% Water Quality/WTF Operations Total Water 319,299 1,450,287 1,130,98878% 144,986 582,256 437,27075% Wastewater Treatment Operation 76,832 437,539 360,70782% Wastewater Collection Ops 93,407 376,042 282,63575% Biosolids Total Sewer 315,225 1,395,837 1,080,61277% 104,862 582,851 477,98982% Storm Total Storm 104,862 582,851 477,98982% 65,138 267,438 202,30076% Equipment Rental-Fleet Total Fleet Operating & Maint 65,138 267,438 202,30076% 70,303 278,490 208,18775% Information Services Total IT Operating & Maint 70,303 278,490 208,18775% 106,599 456,958 350,35977% Public Works Admin Total Public Works Admin 106,599 456,958 350,35977% 359,266 1,549,995 1,190,72977% Engineering Total Engineering Services 359,266 1,549,995 1,190,72977% 17,722 125,000 107,27886% Non-departmental Total Unemployment Self-Ins 17,722 125,000 107,27886% 2,232 27,500 25,26892% Firemen's Pension & Relief Total Firemen's Pension 2,232 27,500 25,26892% Total Expenditures 3,606,735 15,950,351 12,343,61577% Budget Thru Q1$4,291,471 Under Budget Budget Remaining$684,736 City of Port Townsend Page 3 1st Quarter Financial Report ~ 2026 HFOFSBM!GVOE!CBMBODF! Year-to-Date through March 31, 2026 General Fund reserves measured against the City’s 8% and 15% policy targets. General Fund Reserve Analysis Full-Year BudgetYTD Actual Beginning Fund Balance 5,027,209 5,027,209 (2,910,530) Total Budgeted Revenues 15,668,364 3,256,135 Reserve Minimum (8%) 1,253,469 2,350,255 Cushion Above 8% Minimum 863,210 4,500,000 YTD Actual Balance, 4,063,023 4,000,000 3,500,000 3,000,000 15% Target, 2,350,255 2,500,000 Budgeted Ending Balance, 2,116,679 2,000,000 1,500,000 8% Minimum, 1,253,469 1,000,000 500,000 0 1 YTD Actual Balance15% TargetBudgeted Ending Balance8% Minimum City of Port Townsend Page 4 1st Quarter Financial Report ~ 2026 HFOFSBM!GVOE!UBYFT Year-to-Date through March 31, 2026 20242025202620262026 % of 2026 Budget ActualActualActualBudgetedVariance City of Port Townsend Page 5 1st Quarter Financial Report ~ 2026 Year-to-Date through March 31, 2026 Below is general fund revenue from permits, licenses, and fees for City services General Fund - Licenses & Permits Year-to-date thru March 2024202520262026 2026% of 2026 Budget ActualActualActualBudgetedVariance $43,354$40,668$40,997$141,384$100,38729% Business Licenses $156,757$60,771$113,105$475,000$361,89524% Building Permits $0$0$0$0$0 Franchise Fees & Royalties $0$897$3,631$8,000$4,36945% Jefferson Fire Permits $0$10$15$0-$15 Other Permits $0$875$761$2,000$1,24038% TV Public Access Fee $200,111$103,219$158,508$626,384$467,87625% Licenses & Permits General Fund - Charges for Goods & Services Year-to-date thru March 2024202520262026 2026% of 2026 Budget ActualActualActualVariance Budgeted $415,426$400,772$0$0$0 OH/Rentals $0$0$18,000$0-$18,000 Fee in lieu of str and sidwlk $80,144$48,905$78,716$527,635$448,91915% Admin Fees $10,379$10,962$9,960$45,468$35,50922% Planning Services $5,121$14,744$12,651$45,618$32,96728% Zoning & Subdivision Fees $0$600$67,189$75,000$7,81190% Plan Review Fees $0$2,634$9,182$35,000$25,81826% Technology Fee $0$0$0$0$0 Warrant Fees $0$31$23$200$17712% Photocopying $0$0$0$100$1000% Copy/Tape Fees $1,525$655$645$3,000$2,35522% Public Safety Services $0$0$0$100$1000% Booking Fee $0$0$0$0$0 Crime & Conviction $0$0$0$0$0 DUI Emerg Prep $0$0$0$0$0 Dist Court Admin Fees $0$0$0$0$0 Adult Probation Charges $0$0$0$0$0 Electronic Monitoring $0$0$1,259$0-$1,259 Public Records Fees $0$0$0$0$0 Other Governmental Services $20$0$0$0$0 Other Services $0$0$0$0$0 Attorney & Legal Services $0$0$0$0$0 DSD Inspection Fee $0$0$0$0$0 GMA - Impact Fees $0$0$0$0$0 SEPA Mitigation Fees $0$0$0$0$0 Other Fees $512,614$479,304$197,624$732,121$534,497 Charges for Goods & Services City of Port Townsend Page 6 1st Quarter Financial Report ~ 2026 TBMFT!UBY Year-to-Date through March 31, 2026 Sales tax has consistently remained the General Fund’s largest revenue source. The combined rate within Port Townsend is 9.5% as of April 1, 2026. XIFSF!EPFT!UIF!NPOFZ!HP@ Most sales tax supports the General Fund. District portion (0.3%) is recorded in a Affordable Housing, 3,232, 0% separate special revenue fund because it can TBD, 273,355, 25% only be used for street-related work, and housing. General Fund, 832,524, 75% IPX!JT!JU!USFOEJOH@ General Fund Property Tax, Quarter 1 vs YearlyAll Funds Sales Tax, Quarter 1 $1,400,000 $3,000,000 $2,659,727 $2,657,720 $1,294,437 $2,506,798 $1,200,000 $2,500,000 $1,109,112 $1,000,000 $2,000,000 $867,279 $834,366 $800,000 $1,514,465 $1,458,629 $713,489 $1,500,000 $600,000 $569,081 $927,699 $1,000,000 $400,000 $500,000 $200,000 13% 11%12%12%10%18% $0 $0 202120222023202420252026 202120222023202420252026 Fiscal Year Fiscal Year Annual TotalQ1 Jan–Mar YTD (excl. TBD)TBDQ1 Jan–Mar Q1 Jan–Mar Year to Date Full-Year Total YTD % of Full Year TBD YTD (excl. TBD) City of Port Townsend Page 7 1st Quarter Financial Report ~ 2026 in Month 2, and the City does not receive its portion until Month 3. As a result, sales tax is recorded in the accounting system about two months after it is generated. $600,000 $500,000 $400,000 321,540 $300,000 265,647 248,569 $200,000 $100,000 $0 JANFEBMAR 202120222023202420252026 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC 202120222023202420252026 City of Port Townsend Page 8 1st Quarter Financial Report ~ 2026 QSPQFSUZ!UBY Year-to-Date through March 31, 2026 collects and remits to the City. The regular levy is subject to the statutory rate cap and the 1% annual growth limit under capacity available only through voter- approved lid lifts or excess levies. XIFSF!EPFT!UIF!NPOFZ!HP@ the General Fund. The Library Fund’s voter-approved lid lift revenue source, supplemented by Debt Service Fund receives an excess levy supporting the voter- approved Mountain View bond, restricted to retiring that obligation. IPX!JT!JU!USFOEJOH@ General Fund Property Tax, Quarter 1 vs YearlyAll Funds Property Tax, Quarter 1 $3,000,000$600,000 $2,657,720$2,659,727 $2,506,798 $493,586 $2,500,000$500,000 $443,748 $425,459 $418,397 $379,220 $2,000,000$400,000 $317,569 $1,514,465 $1,458,629 $1,500,000$300,000 $927,699 $1,000,000$200,000 $500,000$100,000 13% 11%12%12%10%18% $0$0 202120212022202220232023202420242025202520262026 Fiscal YearFiscal Year Annual TotalYear to DateQ1 JanQ1 Jan––MarMar Q1 Jan–Mar Year to Date Full-Year Total YTD % of Full Year City of Port Townsend Page 9 1st Quarter Financial Report ~ 2026 remits the City’s share as revenue. Taxpayers pay in two installments under October 31. Q1 collections are on track at 10% of budget, with the Q2 spike ahead. Property Tax -Q1 Jan–Mar % of Full Year 15% 12% 9% 6% 3% 0% General FundLibraryG.O. Debt Services Fiscal Year Average Past 5 Years2026 All Funds Property Tax -Monthly Collections (2021-2026) $600,000 $500,000 $400,000 $370,179 $300,000 $200,000 $100,000 $54,622 $658 $0 JANFEBMAR 202120222023202420252026 City of Port Townsend Page 10 1st Quarter Financial Report ~ 2026 QVCMJD!VUJMJUZ!UBY Year-to-Date through March 31, 2026 Utility tax is imposed under PTMC 5.84.030, as amended by Ordinance 3329 (2/20/2024), and is a recurring General Fund revenue source. The City levies 16% on the gross revenues of rate restructure moving the prior capital surcharge into the base rate), and 22% on the garbage XIFSF!EPFT!UIF!NPOFZ!HP@ paid by the City’s own utility funds. XIBU!ESJWFT!DIBOHFT@ Utility tax revenue changes due to utility rates set by Council, customer consumption, and the tax rate itself. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 11 1st Quarter Financial Report ~ 2026 CVTJOFTT!'!PDDVQBUJPO!UBY Year-to-Date through March 31, 2026 Business & occupation tax is imposed under PTMC Chapter 5.04A (administered under 5.04B) and is a recurring General Fund revenue source. The City levies a 0.2% (0.002) gross receipts tax on taxable business revenue earned within City limits. A $100,000 annual gross State and the City, while those below owe no City B&O tax. XIFSF!EPFT!UIF!NPOFZ!HP@ XIBU!ESJWFT!DIBOHFT@ Collections can change depending changes in the number of businesses operating in the City. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 12 1st Quarter Financial Report ~ 2026 SFBM!FTUBUF!FYDJTF!UBY!Sfwfovf Year-to-Date through March 31, 2026 County Treasurer collects the tax as the City’s agent and remits it monthly. XIFSF!EPFT!UIF!NPOFZ!HP@ XIBU!ESJWFT!DIBOHFT@ volume and property values. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 13 1st Quarter Financial Report ~ 2026 Mpehjoh!Uby!Sfwfovf Year-to-Date through March 31, 2026 Lodging Tax a special revenue fund accounting for the City’s 4% hotel motel (“lodging”) state sales tax plus an additional 2%) XIFSF!EPFT!UIF!NPOFZ!HP@ Use is restricted by state law to tourism promotion and tourism-related facilities. LTAC reviews proposals and recommends allocations to City Council. Current allocations also fund 25% of the Communications & Marketing Director and 50% of the Arts & Culture Coordinator positions. XIBU!ESJWFT!DIBOHFT@ room rates, and seasonal demand. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 14 1st Quarter Financial Report ~ 2026 Xbufs!Vujmjuz!Sfwfovf Year-to-Date through March 31, 2026 cost of service. XIFSF!EPFT!UIF!NPOFZ!HP@ of the water system, treatment and distribution capital improvements to system infrastructure. XIBU!ESJWFT!DIBOHFT@ Collections change with customer water consumption. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 15 1st Quarter Financial Report ~ 2026 Tfxfs!Vujmjuz!Sfwfovf Year-to-Date through March 31, 2026 The Sewer Utility is an enterprise fund supported by sewer rates, which recovers the full cost of service. XIFSF!EPFT!UIF!NPOFZ!HP@ improvements to system infrastructure. The Sewer Utility includes the following City XIBU!ESJWFT!DIBOHFT@ consumption. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 16 1st Quarter Financial Report ~ 2026 Tupsn!Vujmjuz!Sfwfovf Year-to-Date through March 31, 2026 The Storm Utility is an enterprise fund supported by stormwater rates. XIFSF!EPFT!UIF!NPOFZ!HP@ of the stormwater system, management of improvements to system infrastructure. XIBU!ESJWFT!DIBOHFT@ Collections change with the number of developed parcels and amount of impervious surface area. IPX!JT!JU!USFOEJOH@ City of Port Townsend Page 17 1st Quarter Financial Report ~ 2026 Pmznqjd!Hsbwjuz!Xbufs!Tztufn!Sfwfovf Year-to-Date through March 31, 2026 recorded from monthly raw water purchases by each party, and funds are restricted to operations, maintenance, emergency repairs, and capital improvements of the system. charges for potable water. XIBU!ESJWFT!DIBOHFT@ with costs allocated by share of total volume. The rate changes each year ($1.24/kgal in IPX!JT!JU!USFOEJOH@ (Consumption is typically billed and recorded in the following year (e.g., December consumption recorded the next year). However, November consumption for both the Mill and the City was recorded in 2026) City of Port Townsend Page 18 1st Quarter Financial Report ~ 2026 Dbqjubm!Qspkfdu!Gvoet Year-to-Date through March 31, 2026 Capital accounts record project costs as incurred, reimbursed through grant proceeds and operating transfers. Primary revenue sources include grants, related utility operating 2024202520262026 2026 YTD Q1 % of FY 2026 Budget YTD Q1 ActualYTD Q1 ActualYTD Q1 ActualVariance Budget General Capital Streets Capital Water/Sewer Combined Water Capital Sewer Capital Storm Capital Total Revenue 502,0602,014,412633,94925,761,19525,127,2452.5% Total Expenditures 1,650,853749,377972,29726,436,58525,464,288 3.7% City of Port Townsend Page 19 1st Quarter Financial Report ~ 2026 BMM!GVOET!Bdujwjuz Year-to-Date through March 31, 2026 Revenues | Expenses | Fund Balances | YTD Net Gain/Loss Year-to-date thru March 010General Fund5,027,2093,256,1354,220,3214,063,023(964,186) 101Drug Enforcement1,085001,0850 102Contingency Fund324,3152,4396326,7472,432 103ARPA00000 110Street Operations Fund670,780351,082619,728402,134(268,646) 111Transpo Benefit District (TBD)399,874273,35586,430586,799186,925 120Library Fund879,287152,711315,222716,776(162,511) 135Real Estate Excise Tax Fund1,582,647168,097228,0521,522,692(59,955) 150Lodging Tax Fund1,104,09684,615127,2391,061,473(42,623) 1601% Arts Fund7,9005,900013,8005,900 171Fire and EMS Fund00000 180Affordable Housing Fund64,3373,48815,69752,128(12,209) 190Community Dev Block Grants229,4353,2317232,6593,224 199Community Services Fund1,275,949751,869692,1521,335,66659,717 200G.O. Debt Service Fund1,807,528411,97352,219,496411,968 301General CIP Projects811,74930,27129,883812,136387 304Street Vacation Proceeds77,111614277,723612 305Street CIP Fund895,474217,850528,615584,709(310,764) 3152015 GO Bonds00000 3502017 GO Bond104,4458412105,284838 3552018 GO Bonds263,4851,7711265,2551,770 3602020 GO Bond00000 412Storm Operations Fund1,418,804539,483336,0211,622,266203,462 414Storm Capital Fund195,627929193196,362735 417Olympic Gravity Water System (OGWS)12,948,1461,521,615217,26814,252,4931,304,347 4202020 Water Revenue Bond00000 423Golf Course Fund0141,443(1,429)(1,429) 430Water/Sewer Debt Reserve Fund00000 440Water Capital0108,618122,126(13,507)(13,507) 445Water Operating5,611,3431,519,3311,113,7256,016,949405,606 450Sewer Capital0276,281291,480(15,199)(15,199) 455Sewer Operating5,381,4361,507,679927,2055,961,910580,474 495System Development Charge2,906,879357,67137,2263,227,324320,445 500Fleet Replacement Fund2,903,937145,138343,049,041145,104 510Fleet Operating & Maint. Fund(67,765)187,152139,548(20,161)47,604 520IT Operating & Maint. Fund178,144130,905169,130139,919(38,225) 525IT Replacement Fund98,75419,87324,53694,091(4,663) 530Facilities Replacement Fund450,00000450,0000 540Public Works Admininstration423,487195,452189,210429,7296,242 555Engineering Services382,630507,735477,280413,08630,455 595Unemployment Self-Insurance02217,722(17,700)(17,700) 601Refundable Deposits(633)00(633)0 610Firemen's Pension Fund410,6753,8132,243412,2451,570 623Golf Course Fund00000 631Custodial Fund83,52230,61421,93592,2018,679 632Refundable Surety Deposits29,375500029,875500 633Memorial Fund00000 Totals48,881,06612,769,06610,951,68750,698,4451,817,379 City of Port Townsend Page 20 1st Quarter Financial Report ~ 2026 BMM!GVOET!Sfwfovf Year-to-Date through March 31, 2026 Revenues Year-to-date thru March 010General Fund 15,668,3643,256,13521% 101Drug Enforcement 00 102Contingency Fund307,2542,4391% 103ARPA00 110Street Operations Fund2,451,815351,08214% 111Transpo Benefit District (TBD)1,200,000273,35523% 120Library Fund1,379,500152,71111% 135Real Estate Excise Tax Fund722,500168,09723% 150Lodging Tax Fund615,00084,61514% 1601% Arts Fund47,9655,90012% 171Fire and EMS Fund00 180Affordable Housing Fund83,4923,4884% 190Community Dev Block Grants30,0003,23111% 199Community Services Fund3,140,633751,86924% 200G.O. Debt Service Fund1,746,938411,97324% 301General CIP Projects2,444,04230,2711% 304Street Vacation Proceeds0614 305Street CIP Fund8,689,407217,8503% 3152015 GO Bonds00 3502017 GO Bond0841 3552018 GO Bonds5,5001,77132% 3602020 GO Bond00 412Storm Operations Fund3,867,060539,48314% 414Storm Capital Fund241,7639290% 417OGWS5,579,3231,521,61527% 4202020 Water Revenue Bond00 423Golf Park56,000140% 430Water/Sewer Debt Reserve Fund00 440Water Capital6,004,044108,6182% 445Water Operating7,489,2961,519,33120% 450Sewer Capital8,381,939276,2813% 455Sewer Operating13,953,1381,507,67911% 495System Development Charge650,000357,67155% 500Fleet Replacement Fund1,072,646145,13814% 510Fleet Operating & Maint. Fund748,458187,15225% 520IT Operating & Maint. Fund583,419130,90522% 525IT Replacement Fund77,99519,87325% 530Facilities Replacement Fund450,00000% 540Public Works Admininstration778,798195,45225% 555Engineering Services2,453,856507,73521% 595Unemployment Self-Insurance130,000220% 601Refundable Deposits00 610Firemen's Pension Fund52,5003,8137% 623Golf Course Fund00 631Custodial Fund030,614 632Refundable Surety Deposits0500 633Memorial Fund00 Total Revenues91,102,64412,769,06614% City of Port Townsend Page 21 1st Quarter Financial Report ~ 2026 BMM!GVOET!FYQFOEJUVSFT Year-to-Date through March 31, 2026 Expenditures Year-to-date thru March 010General Fund 18,578,8944,220,32177% 101Drug Enforcement 00 102Contingency Fund06 103ARPA00 110Street Operations Fund2,337,621619,72873% 111Transpo Benefit District (TBD)1,730,94286,43095% 120Library Fund1,327,358315,22276% 135Real Estate Excise Tax Fund1,234,485228,05282% 150Lodging Tax Fund989,274127,23987% 1601% Arts Fund13,8000100% 171Fire and EMS Fund00 180Affordable Housing Fund83,38415,69781% 190Community Dev Block Grants20,0007100% 199Community Services Fund3,258,872692,15279% 200G.O. Debt Service Fund1,686,4365100% 301General CIP Projects2,590,00329,88399% 304Street Vacation Proceeds02 305Street CIP Fund9,506,117528,61594% 3152015 GO Bonds00 3502017 GO Bond95,0002100% 3552018 GO Bonds81,9071100% 3602020 GO Bond00 412Storm Operations Fund3,091,320336,02189% 414Storm Capital Fund241,763193100% 417OGWS5,596,526217,26896% 4202020 Water Revenue Bond00 423Golf Park59,3041,44398% 430Water/Sewer Debt Reserve Fund00 440Water Capital5,315,542122,12698% 445Water Operating11,374,1611,113,72590% 450Sewer Capital8,783,159291,48097% 455Sewer Operating16,304,237927,20594% 495System Development Charge1,838,96837,22698% 500Fleet Replacement Fund530,00034100% 510Fleet Operating & Maint. Fund663,961139,54879% 520IT Operating & Maint. Fund528,841169,13068% 525IT Replacement Fund30,00024,53618% 530Facilities Replacement Fund00 540Public Works Admininstration943,898189,21080% 555Engineering Services2,167,979477,28078% 595Unemployment Self-Insurance125,00017,72286% 601Refundable Deposits00 610Firemen's Pension Fund27,5002,24392% 623Golf Course Fund00 631Custodial Fund021,935 632Refundable Surety Deposits00 633Memorial Fund00 Total Expenditures101,156,25110,951,68789% City of Port Townsend Page 22 1st Quarter Financial Report ~ 2026 JOWFTUNFOUT Year-to-Date through March 31, 2026 Portfolio Diversification Instrument TypeBankInterest RatePercentageAmount 01 - US Bank Money Mkt X0A92US Bank3.360% 0.44% 201,316 02 - Federal Home Loan Mtg XCVM8US Bank4.060% 1.63% 750,000 03 - Federal National Mortgage X0Q22US Bank1.875% 2.04% 939,566 04 - Federal Home Loan XAJM1US Bank3.000% 1.41% 649,531 05 - Federal Farm Credit XP4U6US Bank4.375% 2.17% 998,475 06 - Federal Home Loan X6B70US Bank4.000% 16.28% 7,500,000 07 - Federal Farm Credit XREB3US Bank4.500% 2.18% 1,002,502 08 - Federal Home Loan X2G77US Bank3.109% 1.88% 867,508 09 - Federal Farm Credit XRDH1US Bank4.750% 2.20% 1,015,358 10 - US Treasury Note XCFJ5US Bank3.125% 2.15% 988,050 11 - Resolution Funding Strip XFAB3US Bank3.439% 1.72% 793,565 12 - F N M A Strip XDDR2US Bank5.125% 1.10% 508,952 13 - F N M A Strip XDDS0US Bank6.625% 2.17% 999,168 14 - Public Money Market X6818Kitsap5.000% 27.38% 12,611,790 15 - Certificate of Deposit X4128Kitsap4.740% 4.91% 2,262,816 16 - Certificate of Deposit X5028Kitsap3.920% 4.85% 2,231,723 17 - State Investment Pool X01790LGIP3.710% 25.49% 11,741,956 Total Investments100%46,062,276 Cash in BankAmount 01 - Demand Account X2611 5,621,500 02 - Travel Advance Account X51110 03 - Payroll Account X34110 04 - Escrow Account X791126 05 - Petty Cash Net Cash in Bank5,621,526 Total51,683,802 City of Port Townsend Page 23 1st Quarter Financial Report ~ 2026 EFCU!TFSWJDF Year-to-Date through March 31, 2026 HP!EFCU Total Debt Svc (All Total Remaining Issue / LoanStart DateFinal PmtOriginal Principal Years)Debt Svc LTGO 2017A (2008 Refi) Non-Taxable201720359,155,00014,647,91011,423,400 LTGO 2020 (Refi 2010)201020404,658,3506,047,1252,325,371 LTGO Ref 2015 - Mountain View201520313,385,0004,674,5641,802,800 LTGO 2018 - Homeward Bound20182040834,0001,324,125897,465 Total GO Debt18,032,35026,693,72416,449,036 Issue / Loan2026 Principal2026 Interest2026 Debt SvcCurrent Balance LTGO 2017A (2008 Refi) Non-Taxable600,000365,000965,0009,125,000 LTGO 2020 (Refi 2010)319,30037,240356,5402,126,600 LTGO Ref 2015 - Mountain View240,00063,000303,0001,575,000 LTGO 2018 - Homeward Bound33,52528,37161,896660,508 Total GO Debt1,192,825493,6121,686,43713,487,108 IPX!HP!EFCU!TFSWJDF!JT!QBJE Funding Source All Years 2026 Amount% of Total REET1 & REET 2$9,180,000$510,00030.2% Addt'l General Fund Support to pay Debt Svs$6,601,765$391,54123.2% Property Tax$3,936,000$252,00014.9% Street Fund$3,211,950$179,15010.6% Special Purpose Tax/Public Safety Tax$2,263,500$150,0008.9% Lodging Tax Fund$2,250,000$125,0007.4% Affordable Housing Fund$1,206,939$61,8963.7% Stormwater Fund$337,000$16,8501.0% Total GO Debt Service Funding$28,987,154$1,686,437100.0% VUJMJUZ!EFCU Total Debt Svc (All Total Remaining FundIssue / LoanStart DateFinal PmtOriginal Principal Years)Debt Svc 201320311,000,0001,023,967318,553 201620363,071,5213,611,5431,853,137 201320311,896,0001,978,901683,280 201620323,942,2784,100,5841,759,755 201520321,258,3941,311,603535,946 201520374,596,3205,112,8882,830,514 201520373,537,2753,942,0172,260,319 202120401,914,9802,378,2681,783,690 202120381,200,0001,627,2321,057,701 20172038204,027250,041166,694 202520441,121,8141,162,9921,162,122 City of Port Townsend Page 24 1st Quarter Financial Report ~ 2026 Agenda Bill: AB26-069 Meeting Date: June 15, 2026 Agenda Item:Consent VII. E Regular Business Meeting Workshop/Study Session Special Business Meeting itted By:Emma Bolin, Robin Hill, and Renata Munfrada Subm Date Submitted: June 10, 2026 Department: Planning & Community Development Contact Phone: (360) 390-4048 SUBJECT: Authorizing deferral of building fees and utility connection charges for Habitat for Humanity Low Income Housing Unit – Rosalynn Court CATEGORY: BUDGET IMPACT: ConsentResolutionExpenditure Amount: $66,663.3 Staff Report Ordinance Included in Budget? Yes No Contract Approval Discussion Item Cost Allocation Fund: N/A Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: Strategy 5: Pursue regulatory reform for affordable housing. EXECUTIVE SUMMARY The City of Port Townsend’s System Development Charge (SDC) deferral program is an affordable housing incentive that helps reduce one of the most immediate barriers to housing production: upfront development costs. Under the City’s municipal code, qualifying low-income housing projects may defer payment of certain SDCs, building fees, and utility connection charges rather than paying those costs at the outset of construction. This gives housing providers greater flexibility to use limited capital for land acquisition, design, construction, and project delivery during the period when financing is most constrained. The program supports housing affordable to households at or below 80 percent of area median income and is intended to encourage the construction of homes that might otherwise be delayed or become financially infeasible. By deferring charges for water, sewer, and stormwater infrastructure, as well as eligible permit and utility connection fees, the City lowers the early cash burden on nonprofit builders, community land trusts, and private developers delivering affordable units. This is especially important for smaller- scale or phased projects, where fee timing can have a significant effect on feasibility. HOW THE PROGRAM SUPPORTS HOUSING PRODUCTION Habitat for Humanity of East Jefferson County provides a practical example of how the City’s SDC deferral program can support affordable housing production. As a nonprofit developer serving income-qualified households, Habitat often works with limited project funding and relies on layered financing to deliver permanently affordable homeownership opportunities. Deferring system development charges and related utility fees can reduce early cash demands during predevelopment and construction, allowing more resources to be directed toward site work, building costs, and long-term affordability. For organizations like Habitat, the timing of these fees can materially affect whether a project is feasible, how many homes can be produced, and how quickly they can be delivered to the community. Habitat has requested fee deferrals for the development of Rosalynn Court, a five-unit neighborhood, built in a cottage style to foster community and engagement among the residents. Rosalynn Court was created in response to the growing need for affordable homeownership opportunities in East Jefferson County. As housing costs continue to rise, many local families are being priced out of the communities where they live and work. The neighborhood reflects Habitat’s commitment to building stable, affordable homes that allow families to put down roots, build equity, and remain connected to the community. This serves as Habitat’s first Low-Income Housing fee deferral request for the 2026 calendar year, pursuant to PTMC 3.36.011F. Four additional requests for thisproject are forthcoming, which requires Council approval exceeding 4 single family residences. The new homeowners meet the qualifications for low-income as defined by the federal standard at or below 80% AMI. The project development also includes “sweat equity” by the prospective homeowner and/or volunteer labor contributed through community donations. Type of Fee Code Limits Request SDCsNo Limit $9,646.50 SFR: 4/Year Utility Connections $450 ADU: 8/Year MFR: $10k/Project Building Permit $3,183.45 *Unless approved by City Council SDP $420.00 Total RequestedEstimated Fee Summary$13,699.95 Requests for deferrals above the limit are subject to approval by the City Council on a case-by-case basis. The Council will evaluate, among other things, number of entities expected to request deferrals within the current budget cycle, the impact to city department budgets from processing an increased number of deferral requests. (PTMC 3.36.011 (F)). When Council first enacted the low income fee deferral ordinance, the formula used to determine the automatic fee deferrals determined the upper limit for utility connections and building permits at $172,000 annually (approximately $43,000 per unit). Typically, total annual approved deferral amounts haven’t neared this limit. This Habitat application, for example, is $13,332 per unit. This Rosalynn Court application is the first deferral request received this year. The City will reassess if more applications come forward this year and will be encouraging and assisting any eligible affordable housing partners with Connecting Housing through Infrastructure program grant applications this Fall. If awarded, CHIP grants canrepay the utility for deferred SDC’s and utility connections. ATTACHMENTS: Rosalynn Court Low-Income Housing (LIH) Fee Deferral Request form th Rosalynn Court Cover Letter, 5Fee Deferral Request in 2026 Rosalynn Court Cover Letter for approval of City Manager RECOMMENDED ACTION If adopted as part of the Consent Agenda, no further action is needed; this represents unanimous approval to authorize the City Manager to approve the Rosalynn Court LIH Fee Deferral Request from Habitat EJC. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules & Approve Ordinance Other: PORT TOWNSEND CITY COUNCIL CONSENT AGENDA June 15, 2026 A. Approval of Bills, Claims and Warrants: Vouchers 621 through 621 in the amount of $559.00 Vouchers 179480 through 179480 in the amount of $37,920.64 Vouchers 179484 through 179490 in the amount of $7,804.23 Electronic Fund Transfers in the amount of $653,182.21 B. Approval of Minutes: April 6, 2026 C. Resolution 26-011 Approving the Final Planned Unit Development and Final Plat for Madrona Ridge- Phase 2, Located in Jefferson County, Washington, City File No. LUP25-059 D. 2026 First Quarter Financial Reports E. Authorizing Deferral of Building Fees and Utility Connection Charges for Habitat for Humanity Low Income Housing Unit- Rosalynn Court 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). From:The Stevensons To:Cityclerk Subject:Letter of Support: Vacation of Street Right of Way in Cappy’s Trails Date:Monday, June 15, 2026 7:49:52 AM CAUTION: External Email As regular users of Cappy’s Trails, we whole-heartedly support Jefferson Land Trust’s proposal to vacate the historically platted street rights of way shown in their application. This action will ensure the proposed areas remain road-free for all current and future users of Cappy’s Trails, both human and wildlife. We appreciate the City of Port Townsend’s recognition of Quimper Wildlife Corridor’s value, and the City’s planned designation of it as a City park. Thank you for considering this proposal! We also thank Jefferson Land Trust for their continued efforts to preserve lands within the Quimper Wildlife Corridor. Christine and Kevin Stevenson Port Townsend, WA Agenda Bill AB26-070 Meeting Date: June 15, 2026 Agenda Item: VIII.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By:Steve King, PW Director, Ryan Harriman, Planning Manager Date Submitted:June 11, 2026 Department:Public Works Contact Phone:360-379-5090 SUBJECT:Resolution 26-012Setting the Conditions to Vacate Street Right of Ways in Cappy’s Trails and Directing the City Manager to Prepare the Vacation Ordinance When all Conditions are Met CATEGORY:BUDGET IMPACT:N/A ConsentResolutionExpenditure Amount:$ Staff ReportOrdinanceIncluded in Budget? Yes No Contract ApprovalOther: Public Hearing (Legislative, unless otherwisenoted) 3-Year Strategic Plan:4 -Ensure sustainable future for public services and facilities Cost Allocation Fund:Choose an item. SUMMARY STATEMENT: The Jefferson County Land Trust and City of Port Townsend have had a long partnership history working to secure and preserve land in the area of Cappy’s Trails. More formally, the 2025 Comprehensive Plan formally established a boundary of a future park clarifying where private holdings need to be purchased. The JCLT desires to apply for grant funding to continue to purchase property within the park boundaryas illustrated in the Comprehensive Plan. Within the boundary, the City and JCTL both own property on both sides of historically platted rights of way. These rights of way, create a fractured ownership pattern. The City can vacate these rights of way for the JCLT to use as match to grant funds which allows locally generated dollars to go further in the purchase ofprivate holdings in the future park boundary. As such the City Council by resolution initiated a right of way vacation process through adoption of resolution 26-042 on April 20, 2026. Furthermore, the resolution set a public hearing for a public hearing on to be held on June 15, 2026. The right of way vacation process is essentially a three-step process as follows. 1. First, the City Council sets a public hearing as required by RCW. 2. Second, the City Council holds a public hearing and reviews staff analysis of compliance with the comprehensive plans as well as other plans and needs of the City. At this hearing, the Council may choose to establish conditions of approval such as surveys, deed restrictions, etc. 3. Once the conditions of approval have been met, the Council will be presented with an ordinance to finalize the right of way vacation. This particular right of way vacation request involves rights of way sandwiched between JCLT and City parcels as illustrated in the map. This right of way area constitutes approximately 28 acres. In compliance with the City code, findings of fact, conclusions, and conditions of approval are provided as part of this resolution. This staff analysis ensures consistency with the City Comprehensive Plan, Functional Plans, and City Code Given the recent comprehensive plan adoption and the partnership with JCLT, staff is recommending holding a public hearing and adopt Resolution this resolution setting forth conditions of approval and directing the City Manager to prepare an vacation ordinance once the conditions have been met. ATTACHMENTS: Staff Report Resolution 26-012 Attachment A-Right of Way Vacation Map and Parcel List CITY COUNCIL COMMITTEE RECOMMENDATION:N/A RECOMMENDED ACTION: Motion to approve Resolution 26-012 Setting the Conditions to Vacate Street Right of Ways in Cappy’s Trails and Directing the City Manager to Prepare the Vacation Ordinance When all Conditions are Met ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 STAFF REPORT To: Mayor and City Council From: Planning & Community Development / Public Works Date: June 10, 2026 Subject: Street Vacation – Cappy’s Trails I. BACKGROUND AND CONTEXT The Jefferson Land Trust requested that the City vacate certain rights-of-way within Cappy’s Trails that are adjacent to both City-owned and Land Trust-owned properties, as shown in Exhibit A. The request is consistent with the City’s Comprehensive Plan, which guides land use and public infrastructure decisions. Because the City owns substantial property adjoining the rights-of-way proposed for vacation and has an interest in their disposition, it is co-sponsoring the request. Final approval is subject to City Council action, as the vacation of public rights-of-way requires Council authorization. The subject rights-of-way were created as part of a historic subdivision pattern that anticipated future urban development and the extension of a street grid into what is now known as the Cappy’s Trails area. That development pattern was never realized. Instead, the area has evolved, through both public acquisition and conservation efforts, outlined in the Quimper Wildlife Corridor Management Plan, as part of a contiguous connected network of open space lands characterized by wetlands, drainage corridors, natural habitats, and informal trail systems. Over time, the City’s adopted policy direction has shifted accordingly. The 2025 Comprehensive Plan and the 2026 Parks, Recreation and Open Space Plan clearly identify Cappy’s Trails as a priority area for conservation, habitat protection, and passive recreation. The area is no longer planned to support vehicular street connections, and the existing rights-of-way do not function as part of the City’s transportation system. Despite this shift in policy, the underlying platting remains. The result is a pattern gridded undeveloped rights-of-way that divide City-owned and Jefferson Land Trust properties, complicating management and preserving the possibility, however unlikely, of future roadway development in an area where such use would conflict with adopted plans. The proposed street vacation is intended to resolve that inconsistency. By vacating the rights-of-way and consolidating ownership, the City and Jefferson Land Trust can manage the area as a unified open space system consistent with adopted policy. In addition, the proposal leverages the value of the right-of-way as match funding to support the acquisition of additional lands within the Cappy’s Trails boundary, further advancing long-standing conservation objectives. II. FINDINGS OF FACT Introduction 2.1. The Jefferson Land Trust approached the City for vacation of certain rights of way within Cappy’s Trails bordering City and Land Trust owned properties as illustrated in Exhibit A. Page 1 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 Given this request is consistent with the Comprehensive Plan and the City owns considerable property adjoining the right of ways to be vacated, this vacation request is co- sponsored by the City, subject to City Council’s approval. 2.2. On April 20, 2026, the City Council passed Resolution 26-006 setting a public hearing for June 15, 2026 to consider the vacation of rights of way. 2.3. This vacation request is consistent with the recently adopted 2025 Comprhensive Plan and the PROS Plan adopted on June 1, 2026, both outlining the goals for further aquisition of properties to realize a future park as illustrated in Figure 9.5 of the Comprehensive Plan. 2.4. The Jefferson Land Trust will use the value of the vacated right of way as matching funds to leverage grant resources to purchase additional privately held properties located within the Cappy’s Trails future park boundary. 2.5. In exchange for the requested vacation, the City will receive the benefit of deed restriction for properties acquired accounting for the public benefit and the provisions in Chapter 12 PTMC. 2.6. The City will receive ½ right of way area for all lands abutting city owned property. The Land Trust will receive ½ right of way area for all lands abutting Land Trust ownership. The entire area to be vacated is a appproximately 28 acres. 2.7. Subject to City Council approval, City staff and Jefferson Land Trust have agreed upon the following principles a. Both the City and the Jefferson Land Trust acknowledge that this land is to be preserved as public open space in accordance with the 2008 QWC, the 2026 City PROS Plan, and the 2025 City Comprehensive Plan. b. The right of way vacation is intended to unify fractured ownership throughout the Cappy’s Trails area, provide for efficient management, public open space, habitat, forestry, and trails. c. Utility easements will be retained where there are existing city utilities. d. Should the city need another utility easement in the future, the Jefferson Land Trust will not unreasonably withhold. For example, there may be a need for a water utility easement to hook into the main line that crosses the property area. Instead of retaining blanket utility easements across all the rights of way this commitment will address utility needs. e. The City and Jefferson Land Trust will continue to collaborate on trail management, most of which are within the existing rights of way. f. The City and Jefferson Land Trust will still have access to their respective owned properties via vacated rights of way for property maintenance. g. The vacation of right of way to be provided by the City shall be offset with tangible and intangible value to further the 2025 Comprehensive Plan and the acquisition of property within such defined boundary. This value may be used as grant match to leverage grant Page 2 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 and donation resources to accomplish acquisition within the Cappy’s Trails boundary. The Jefferson Land Trust agrees to include a deed restriction on properties purchased with grant funds identifying the area as park open space and the City as the beneficiary. PTMC 12.20.040 - Street Vacation Administration 2.8. The procedures and review criteria for street vacations are found in Port Townsend Municipal Code (PTMC) 12.20. PTMC 12.20.040 sets out the administrative requirements for processing of a street vacation request. 2.9. Notice was provided to East Jefferson Fire and Rescue, the City Police Department, and Public Works is involved in this application as a primary sponsoring department of the City. No other service providers such as transit or franchise utilities provide service in the areas to be vacated and thus notice was not necessary. The Public Works Department has been a party to the right of way vacation and has provided input on the conditions of approval. East Jefferson Fire and Rescue provided comments with no objection to the proposal. No other comments were received in response to the application notice at the date of this report. Notice of the June 15, 2026 public hearing before the City Council was provided through the paper of record. 2.10. Public Works staff has reviewed petitioner's request. While street vacations are generally discouraged, staff considers the unique circumstances of this vacation and exchange as providing several public benefits that merit approval. Key benefits include preservation of open space and the reduced risk of street extensions into Cappy’s Trails. 2.11. The City will retain utility easements for the purpose of water and sewer lines existing in the right of way. An existing City water line and sewer line is routed through Cappy’s trails. Future utility lines may be required for system operation, though unlikely. The following figure illustrates the location power infrastructure (red), City water lines (blue), and City sewer lines (green). Page 3 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 2.12.If approved, standard Council conditions for thevacation would require the City and Land to enter into an agreement specifying terms and carrying forward the conditions of approval. PTMC 12.20.060 –Street Vacation Review Criteria 2.13.PTMC 12.20.060 sets out ten(10)review criteria that are used to evaluate each street vacation request. Thesereview criteria include a consistency analysis with the goals and policies of theComprehensive Plan and other adopted City plans. The review criteria and goals/policies applicable to the subject application have been summarized below in italics, followed by a staff analysis of project conformance. A.That the proposed vacation of a street, right-of-way or alley is in compliance with the city’s engineering design standards manual and the goals and policies of the city comprehensive plan and other adopted city plans, as shown on the list maintained by the planning and community development department, including but not limited to the following “functional” or “subarea” plans, as now adopted and hereafter adopted, revised or amended: 1.Shoreline Master Program; 2.Gateway Plan; 3.Nonmotorized Transportation Plan; 4.Stormwater Plan; 5.Water System Plan; 6.Sewer Plan; 7.Parks and Recreation Plan; and Page 4 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 Analysis: There is no nexus between the Shoreline Master Plan, and the Gateway Development Plan as amended. The Non-motorized Plan, now the recently adopted Active Transportation Plan identifies Cappy’s for recreational and connected routes. This proposal furthers these objectives. The Stormwater Management Plan identifies the area as a critical drainage corridor (purple) and key drainage(flow path arrows) with wetlands. This proposal supports preservation of this drainage area consistent with critical area regulations. Page 5 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 The Water system plan does not identify any new pipelines located within the proposal area. The existing watermain will need to be accessible for repair and maintenance. The General Sewer Plan does not identify any planned improvements inside the proposal area. The existing sewer main will need to be accessible for repair and maintenance. The 2026 Parks Recreation and Open Space Plan identifies the area to be a future park consistent with the Parks Element of the Comprehensive Plan as shown in the findings. This action is consistent with the PROS planas shown below. Page 6 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 The followingrelevantComprehensive Plan Goals and Policies were analyzed: Goals: G2 Protect, sustain, regenerate, and manage Port Townsend's natural resource lands, shorelines, and environmentally sensitive areas for present and future generations, in balance with providing for allowed growth and development. G85 Conserve and restore natural ecosystems and urban forests. Protect and expand Port Townsend’s natural ecosystems and tree canopy through land use regulations that promote native vegetation, enhance urban biodiversity, reduce urban heat islands, and support environmental education and stewardship. Policies P5 Protect natural resource lands, archaeological properties, and critical areas through public and private initiatives, such as open space tax incentives, cluster development, PUDs, transfer or purchase of development rights, public land acquisition, dedication of City-owned tracts and street rights of way, conservation easements, landowner compacts, soliciting donations of land, downsizing, limiting the amount of lot coverage, and best management practices in development. P259 Preserve long-term options for the future public use of public rights-of-way. Preserve rights-of way for the long-term public benefit and use. The City of Port Townsend has asserted public interest (opened) in existing Rights of Way for the purpose of transportation, trails, tree preservation, utilities, critical area protection, open space preservation, and stormwater mitigation P262 Use the following criteria to consider if public rights-of way should be vacated or left unimproved: Street continuity and property access; Future utility needs, including stormwater facilities, and capital facilities plans; Consistency with Land Use and Transportation Elements, as well as the overall Comprehensive Plan; Inclusion of the right-of-way in applicable functional plans; and Preservation of open space, trees, and environmentally sensitive areas. P503 Draft and review the Streets Circulation Plan to identify right of way that can be preserved for trails, trees, open space, or other public uses. Action Items: A5.02 Developing and implementing nonregulatory and regulatory means for acquiring and developing the open space and trails network, especially in the Cappy’s Trails designated preservation area. P470 Plan for street connections around and not through Cappy’s Trails future open space / park boundary Page 7 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 Analysis: The Comprehensive Plan clearly identifiesgoals and policies directly supporting this proposal in terms of preserving open space and natural resources, following the sustainable streets plan, and preservation of Cappy’s Trails. Right of way vacation in this proposal meets the objective for right of way management as well as open space preservation and recreation including furthering the Active Transportation Plan connected routes and aligns very well with the Comprehensive Plan Goals and Policies, especially policy P470 as it relates to the needs for right of way. It is noted that the Comprehensive Plan establishes public interest in the rights of way for other public uses other than just roads and utilities. This vacation does not jeopardize these other public interests, but rather reinforces them given all lands will remain in the ownership of the City and Land Trust. B. That the proposed vacated street, right-of-way or alley is not required for current or anticipated overall area motor vehicle circulation; and Analysis: The Comprehensive Plan and its sustainable streets plan in the Transportation Element do not identify needs for streets within the Cappy’s Trail future park boundary as identified in Parks Element of the Comprehensive Plan. Page 8 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 C.That the current and anticipated future effectiveness of law enforcement, medical or other emergency services will not be unduly impaired by the vacation of the street, right- of-way or alley; and Analysis: The vacation requestwas circulated to Port Townsend Police and East Jefferson Fire Rescue. East Jefferson Fire and Rescue did not see any problem with the proposal as long as access is maintained for the current structures inside the boundary. D.That the current and anticipated future needs for public transportation service (transit), mail delivery, private utility service delivery, solid waste collection service and other public service delivery will not be unduly impaired by vacation of the street, right-of-way or alley; and Page 9 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 Analysis: The area does not currently have roads and is not intended for development and thus this criteria is not applicable. Additionally, these services are not needed in the area being vacated given property is owned by either the City of the Jefferson Land Trust. E. That the proposed vacated street, right-of-way or alley is not required as a current or anticipated utility corridor (suitable for water, sewer, storm sewer and other franchise providers; easements may be required to satisfy this criterion. The dimensions of the easement shall conform with the city’s adopted engineering design standards); and Analysis: A City distribution watermain and sewer trunk line run through Cappy’s Trails. Easements will be retained and access roads will be maintained over these facilities. Future utility needs are not identified at this time. Should future utility extensions through Cappy’s be needed, easements will not reasonably be withheld. F. That the proposed vacated street, right-of-way or alley is not required as a current or anticipated bicycle, pedestrian or equestrian pathway, trail or sidewalk corridor (suitable trail easements may be required to satisfy this criterion. The dimensions of the easement shall conform with the city’s adopted engineering design standards); and Analysis: The proposed area for vacation is intended to consolidate land and facilitate trail management. The Active Transportation Plan identifies priority routes through Cappy’s Trails as shown below. Commitment to maintaining these trail corridors is a recommended condition. Possible adjustment of trail corridor locations is possible to improve access and reduce impact to the natural area. G. That the proposed vacation will not increase the potential for disturbance of a critical area, as defined by Chapter 19.05 PTMC, including critical areas within and outside of the street, right-of-way or alley proposed for vacation; and Analysis: Critical areas are within Cappy’s and one of the primary purposes of this vacation is to use the value to leverage grant resources to purchase property and further protect critical areas. H. That, in the case of the proposed vacation of any portion of a street, right-of-way or alley which abuts a body of fresh or salt water, the proposed vacation meets the adopted criterion of this section and has been reviewed and approved in accordance with RCW 35.79.035, as both now exist or are hereafter amended; and Analysis: The area does not abut fresh or salt water and complies with RCW 35.79.035 I. The city shall not vacate, by petition, less than the full width of the right-of-way. The city may initiate and vacate by resolution less than a full width of right-of-way. Page 10 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 Analysis: The proposal include full vacation of rights of way located between City and Land Trust ownerships. J. Vacation requests for any street, right-of-way or alley cannot rely on prior actions of the petitioner(s) as a basis for approval (i.e., illegal construction of a new fence or other nonpermitted improvements). Analysis: Prior actions do not factor into the basis of approval. Prior actions related to establishment of the Quimper Wildlife Corridor has been a joint City and Jefferson Land Trust endeavor. This section is not applicable to the proposal. PTMC 12.20.090 – Compensation for vacation and PTMC 12.20.100 - Appraisals 2.14. Consistent with PTMC 12.20.090, the preparation of a fair market property appraisal can be waived by Council whenever a vacation request involves a property exchange so long as qualified Public Works staff provide a written determination that the property value being received is equal to or greater than the value of the right-of-way vacated. In cases where a written determination of the exchanged land values is not yet available, Council approval of the request must be conditioned on providing one prior to taking action on any final vacation Ordinance. Analysis: The Department of Public Works determined that property value being received is equal to or greater than the value of the right of way to be vacated. This will come in the form of land being secured through grants in addition to the value of the right of way vacated. The Jefferson Land Trust has agreed to providing the city a deed restriction for the purpose of future park and open space consistent with the comprehensive plan. This vacation should only be exercised upon successful receipt of the grant funding that will procure 28 acres or more of area or provide an equivalent value as determined through the appraisal process, of which is required for grant documentation. III. CONCLUSIONS 3.1. The Jefferson Land Trust and the City are jointly proposing vacation of rights of way abutting both City owned and Jefferson Land Trust owned property within the Cappy’s Trails/Quimper Wildlife Corridor Area. 3.2. The proposal complies with the applicable goals and policies of the Comprehensive Plan, and functional plans as discussed in the Findings above. The portion of the subject right-of- way is not needed for future area-wide vehicular circulation. 3.3. The vacation of right of way to leverage grant funding to further the preservation of Cappy’s trails through acquisition of private property provides a tangible value to the City both in terms of lands and public benefit. Appraisals as part of the grant process will be available to validate this conclusion. Page 11 of 12 Planning & Community Development Department 250 Madison St., Suite 3 Port Townsend, WA 98368 360-379-5095 3.4.The effectiveness of fire, law enforcement, medical and other emergency services will not be impaired by the proposed vacation. 3.5. Public Works staff has confirmed the right-of-way sought for vacation is no longer needed as a transportation corridor or for regional stormwater or other utility purposes. As such, staff supports the vacation request subject to conditions. 3.6. The subject right-of-way is located near or within identified critical areas. Vacation of right of way will support preservation and protection of critical areas. 3.7. The portion of the street proposed for vacation does not abut a body of salt or fresh water. IV. RECOMMENDATION As the proposed street vacation conforms with the goals and policies contained in the Comprehensive Plan and satisfies the review criteria for street vacations set forth in PTMC 12.20.060, Staff recommends the Port Townsend City Council adopts the aforementioned findings and conclusions and APPROVES the above referenced proposal, SUBJECT TO THE FOLLOWING CONDITIONS: V. RECOMMENDED CONDITIONS OF APPROVAL 1. A final vacation Ordinance shall be presented for Council approval only after: a) Grant funds have been secured demonstrating intangible value and tangible land value of greater or equal value to the land being vacated; b) Approved legal descriptions are developed for the final ordinance reflecting the right of way vacation map depicted and parcel numbers enumerated in Attachment A. c) A utility easement for the water line and sewer line shall be retained in favor of the City as a public main. d) An agreement is executed between the City and with the Jefferson Land Trust addresses principles outlined in the findings of fact. e) A deed restriction for properties to be acquired with matching right of way values and grant funds be filed for the benefit of the City outlining public open space preservation and access per the Comprehensive Plan future park designation. 2. The final vacation Ordinance, together with the fully executed agreements and deed restriction, and all other required filings shall be recorded concurrently with the County Auditor’s Office. All fees and costs related to the preparation, review and recording of all documents associated with the vacation are the responsibility of the Land Trust. Page 12 of 12 Resolution 26-012 RESOLUTION NO. 26-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, SETTING THE CONDITIONS TO VACATE STREET RIGHT OF WAYS IN CAPPY’S TRAILSAND DIRECTING THE CITY MANAGER TO PREPARE THE VACATION ORDINANCE WHEN ALL CONDITIONS ARE MET WHEREAS, the Port Townsend City Council adopted the 2025 Comprehensive Plan Periodic Update on December 15, 2025; and, WHEREAS, the Comprehensive Plan includes Cappy’s Trails as a Future Park; and, WHEREAS, the City and Jefferson County Land Trust have partnered to preserve Cappy’s Trails including the development of the 2008 Quimper Wildlife Corridor Plan; and, WHEREAS, the City Council supports the Jefferson County Land Trust in the application for grant funding to secure additional privately held properties in the Cappy’s Future Park designated area; and, WHEREAS, approximately 28 acres of right of way is eligible for vacating with the City and/or Land Trust owning property on both sides of the right of way; and, WHEREAS, based on years of planning, the right of ways have been deemed not necessary for the City; and, WHEREAS, the vacation of right of way can be used as grant match to leverage funding to further purchase privately held property; and, WHEREAS, the City of Port Townsend initiated a proposal to vacate Street rights of way in the Cappy’s Trails area as depicted and enumerated in Exhibit A through approval of Resolution 26-042, setting a public hearing; and WHEREAS, the public benefit will result from procurement of grant funding to secure additional properties for preservation and development of the future Cappy’s Trails park thereby satisfying code requirements for value exchange; and WHEREAS, Port Townsend Municipal Code 12.20.040 governs the administration of street vacations; and WHEREAS, the City published notice of the proposed vacation in the City’s official newspaper; and WHEREAS, no other property owners abut the proposed right-of-way vacations other than the Jefferson Land Trust and the City; and WHEREAS, the City Council conducted a public hearing on June 15, 2026; Resolution 26-012 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend, Washington,that the City Council adopts the findings, conclusions, and conditions presented in the Planning and Community/Public Works Departments staff report (Exhibit A) Upon completion of the following conditions, the Council directs the City Manager to prepare and present the vacation ordinance to the City Council for final passage and recording. Conditions of Approval: 1. A final vacation Ordinance shall be presented for Council approval only after: a)Grant funds have been secured demonstrating intangible value and tangible land value of greater or equal value to the land being vacated; b) Approved legal descriptions are developed for the final ordinance reflecting the right of way vacation map depicted and parcel numbers enumerated in Attachment A. c) A utility easement for the water line and sewer line shall be retained in favor of the City as a public main. d) An agreement is executed between the City and with the Jefferson Land Trust addresses principles outlined in the findings of fact. e) A deed restriction for properties to be acquired with matching right of way values and grant funds be filed for the benefit of the City outlining public open space preservation and access per the Comprehensive Plan future park designation. 2. The final vacation Ordinance, together with the fully executed agreements and deed restriction, and all other required filings shall be recorded concurrently with the County Auditor’s Office. All fees and costs related to the preparation, review and recording of all documents associated with the vacation are the responsibility of the Land Trust. ADOPTED by the City Council of Port Townsend, Washington, at a regular meeting th thereof, held this 15day ofJune2026. ___________________________________ Amy Howard Mayor Attest: _________________________ Alyssa Rodrigues, City Clerk Resolution 26-012 Exhibit A Findings of Fact, Conclusions and Conditions of Approval ATTACHMENT A – Right of Way Vacation Map and Parcel List Parcel NumberOwnerStreet AddressCityStateZip 101345009CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951900003CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951900304CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951900309CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951900406CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951900407CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901101CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901102CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901103CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901105CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901117CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901119CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901401CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901403CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901801CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901803CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901804CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901816CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901901CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901903CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT TOWNSENDWA98368-5738 951901905CITY OF PORT TOWNSEND250 MADISON ST STE 1PORT 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972901201JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 972901401JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998000901JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998001206JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998001901JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998001902JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998001903JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998002201JEFFERSON LAND TRUST1033 LAWRENCE STPORT TOWNSENDWA98368-6523 998001801JEFFERSON LAND TRUST1034 LAWRENCE STPORT TOWNSENDWA98368-6524 Agenda Bill AB26-071 Meeting Date: June 15, 2026 Agenda Item: IX.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Senior Planner Adrian Smith, Planning Manager Ryan Harriman Date Submitted: June 10, 2026 Department: Planning & Community Development Contact Phone: (360)-379-4423 SUBJECT:Second reading of Ordinance 3366 Relating to the Conversion of Existing Buildings to Residential Uses and the Addition of Residential Units in Existing Buildings in Accordance with HB 17 57; Amending Development Regulations in Title 17 of the Port Townsend Municipal Code; and Establishing an Effective Date CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: $0 Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Discussion Item Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 1 - Build small town quality of life Cost Allocation Fund: N/A SUMMARY STATEMENT: In the 2025 legislative session, Washington State adopted HB 1757, modifying regulations for existing buildings used for residential purposes. The law amends RCW 35A.21.440 and 35.21.990 with the intent of creating more housing by simplifying the conversion of existing buildings to residential uses. The deadline for jurisdictions, including Port Townsend, to adopt regulations implementing HB 1757 is the end of June 2026. PCD staff and a team of student interns from Western Washington University Urban Planning & Sustainable Development drafted amendments to Port Townsend Municipal Code to comply with HB 1757. Drafts of these amendments were shared with the Department of Commerce, the Planning Commission, and the public. Proposed amendments are focused on three areas: Adopting a new chapter in Title 17 PTMC to clarify the permitting process for converting existing buildings to residential uses and for adding residential uses to existing buildings. The proposed chapter implements HB 1757. Amending existing chapters in Titles 12 and 17 PTMC to comply with HB 1757, allow more residential uses in commercial zones, and create consistency and compatibility between allowed uses. Commercial property retains its commercial use, now with more options for permitted and conditional residential uses. Amending Chapter 12.06 PTMC to comply with HB 1757 excepting conversion of existing buildings to a residential use or the addition of residential units to an existing building from transportation concurrency requirements. Page2/2 o Note:This is new language that was not previously available for public comment – public comment will be accepted on this topic during the 6/15 regular business meeting. As required, the City held a duly noticed public hearing, complete with public comments, on the proposed amendments on June 1, 2026. Following this public hearing, the draft ordinance is presented for a second reading during the June 15, 2026, Council Business Meeting. ATTACHMENTS: A. S taff Report to the Planning Commission May 28, 2026 B. Ordinance 3366: Relating to the Conversion of Existing Building to Residential Uses and the Addition of Residential Units in Existing Building in Accordance with HB 1757; Amending Development Regulations in Title 17 of the Port Townsend Municipal Code; and Establishing an Effective Date C. Exhibit A to Ordinance 3366: Proposed Chapter 17.XX PTMC Conversion or Addition of Dwelling Units in Existing Buildings D. Exhibit B to Ordinance 3366: Proposed amendments to Chapter 17.16 PTMC Residential Zoning E. Exhibit C to Ordinance 3366: Proposed amendments to Chapter 17.20 PTMC Commercial Zoning District F. Exhibit D to Ordinance 3366: Proposed amendments to Chapter 17.31 PTMC Rainier Street/Upper Sims Way Subarea G. Exhibit E to Ordinance 3366: Proposed amendments to Chapter 12.06 Transportation Concurrency Management H. Department of Commerce Comments PLANNING COMMISSION RECOMMENDATION: The Planning Commission adopted the Findings and Conclusions in the May 28, 2026, Staff Report and recommended City Council adopt the amendments to Title 17 Port Townsend Municipal Code as presented, with any amendments needed to address Planning Commission comments. COUNCIL ACTION: Move to Approve Ordinance No. 3366, Relating to the Conversion of Existing Building to Residential Uses and the Addition of Residential Units in Existing Building in Accordance with HB 1757; Amending Development Regulations in Title 17 of the Port Townsend Municipal Code; and Establishing an Effective Date. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance 3366 Other: Page1/5 Port Townsend Planning Commission Meeting Date: May 28, 2026 Submitted By: Senior Planner Adrian Smith Date Submitted: 05/22/26 Department: Planning & Community Development Contact Phone: (360)-379-4423 SUBJECT: Conversion or Addition of Dwelling Units in Existing Buildings SUMMARY STATEMENT: Proposed Amendments for Conversion or Addition of Dwelling Units in Existing Buildings. Introduction and Background First, students proposed a new chapter of Title 17 PTMC. This chapter clarifies the permitting process for converting existing buildings to residential uses and adding residential units to Page2/5 existing buildings. Clarifying permitting was particularly important because HB 1757 states that only new units created through the conversion of an existing building, not residential units that already existed in the building, must meet the current Energy Code. Under the proposed regulations, existing units will not need costly renovations to meet the more stringent Energy Code, while new units must still meet standards designed to reduce energy inefficiency. It was also essential for this new chapter to a existing buildings allow up to 50% more units than are permitted in the underlying zone. This change increases opportunities for additional housing units. Second, students proposed amending existing development regulations to allow residential uses in Commercial zones, preventing conflict between the intent of HB 1757 and zoning. Commercial property retains its commercial use, now with more options for permitted and conditional residential uses. For example, the proposed code allows employer-provided housing in the C-II, C-II(H), and C-III zones, for consistency with how owner/operator/employee residences are permitted in these zones. The bulk of these amendments were to Title 17.20 Commercial Zoning, but amendments for consistency were also made in 17.16 Residential Zoning and 17.31 Rainier Street/Upper Sims Way Subarea. Environmental Review & Associated Public Comment Page3/5 Findings, Conclusions, and Recommendations on the Proposed Amendments for Conversion or Addition of Dwelling Units in Existing Buildings 1. as is mandatory by July 2026. 2. Public engagement on the amendments included regular Planning Commission meetings, as well as open public hearings before Planning Commission and City Council. 3. growth towards areas that can support development considering existing land uses, availability of infrastructure and facilities, and environmental constraints, while also reducing sprawl and 4. support development of sufficient amounts and types of housing, both rental and ownership, for all income levels, while supporting and creating welcoming residential neighborhoods 5. diverse, inclusive housing opportunities throughout the City by integrating multi-family, special 6. Adopting the proposed amendments is consistent with Comprehensive Plan Goal variety of housing opportunities to meet the needs of economic segments of the community, especially low-and moderate- 7. greater balance between housing and employment opportunities, recognizing that an adequate supply of affordable housing is directly linked to economic development. 8. multi-nodal development of higher-density and transit-oriented mixed-use centers and districts that integrate residential and commercial uses to reduce vehicle dependence, enhance walkability, and support vibrant, resilient communities 9. provide lower cost housing, regularly update development standards to allow flexibility without 10. Adopting the proposed amendments is consistent with Comprehensive Plan Policy 74 11. Adopting the proposed amendments is consistent with Comprehensive Plan Policy 79 permanent housing and artist studios live/work situations. In shoreline jurisdiction, allow 12. Adopting the proposed amendments is consistent with Comprehensive Plan Action A6.03 Evaluating existing land use regulations and identify measures to increase the variety of affordable housing types throughout Port Townsend and increase base zoning to ensure these housing types can be built on existing lots. Examples of potential revisions include: smaller single-family lot sizes; more liberal allowance of single-family attached dwellings (i.e., single-lot duplexes, triplexes and fourplexes); increase residential height limits, increase multi-family density; zero lot line development; conversion of larger homes to multi-family units; smaller homes; and co-living micro- Page4/5 13. Pursuant to Port Townsend Municipal Code (PTMC) Section 20.04.090.A.1, the text of adopted development regulations may be changed as long as the change is consistent with the Port During the March 26, 2026, Planning Commission meeting, department staff reported that code changes to comply with HB 1757 could be completed outside the annual docket process, and recommended reviewing the proposed amendments under PTMC 20.04.090.A.1. 14. On April 29, 2026, the Port Townsend Leader published a notice of the Planning May 14, 2026, hearing on the proposed amendments to the development regulations. 15. Notice of all the Planning Commission meetings on the proposed amendments were provided in accordance with Open Public Meetings Act requirements. Notice of all Planning Commission hearings on the proposed amendments were provided in a manner consistent with Section 20.04.080A(1), including publication in the Port Townsend Leader and posting at City Hall. 16. On April 16,2026, the proposed development regulation amendment were submitted to the State Department of Commerce for a 60-day comment period which ends on June 15, 2026. 17. The City Attorney reviewed HB 1757 and determined that amendments to comply with this law were exempt from SEPA review, based on RCW 35.21.990(2)(i ordinances, development regulations, zoning regulations, or other official controls as required study under RCW 36.70A.070 or an environmental study under chapter 43.21C RCW based on the 18. The Planning Commission is conducting a public hearing on the proposed amendments to the development regulations on May 14, 2026. The Commission shall consider all public comments and take verbal testimony. Page5/5 ATTACHMENTS: Exhibits A. Proposed PTMC Chapter 17.XX Conversion or Addition of Dwelling Units in Existing Buildings B. Proposed amendments to PTMC 17.16 Residential Zoning C. Proposed amendments to PTMC 17.20 Commercial Zoning District D. Proposed amendments to PTMC 17.31 Rainier Street/Upper Sims Way Subarea E. Commerce Comments Ordinance 3366 Ordinance No. 3366 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON RELATING TO CONVERSION OF EXISTING BUILDINGS TO RESIDENTIAL USES AND THE ADDITION OF RESIDENTIAL UNITS IN EXISTING BUILDINGS IN ACCORDANCE WITH HB 1757; AMENDING DEVELOPMENT REGULATIONS IN TITLE 17 OF THE PORT TOWNSEND MUNICIPAL CODE; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the City of Port Townsend (“City”) is facing a shortage of housing options and the City Council encourages a diversity of housing types and fewer barriers to additional housing development; and WHEREAS, in 2025 the Washington State Legislature passed House Bill (“HB”)1757, requiring cities to modify their regulations for existing buildings used for residential purposes. HB 1757 requires cities to provide for the conversion of existing buildings to residential uses and the addition of units in existing residential buildings; and WHEREAS, as required by the Growth Management Act, RCW 36.70A.130(1)(d), the proposed amendments to the development regulations are consistent with and implement the comprehensive plan; and WHEREAS, public notice and opportunity to comment on these amendments was provided through: April 23, 2026, regular Planning Commission open public meeting April 29, 2026, legal notice of public hearing before the Planning Commission published in the Port Townsend Leader May 14, 2026, Planning Commission open public hearing on the proposed amendments May 20, 2026, legal notice of public hearing before the City Council published in the Port Townsend Leader May 28, 2026, regular Planning Commission open public meeting June 1, 2026, City Council open public hearing on the proposed amendments June 15, 2026, City Council open public meeting on the proposed amendments; and WHEREAS, On April 16, 2026, the City’s Department of Planning and Community Development staff provided notice of intent to adopt the proposed development regulation amendments to the State Department of Commerce (“Commerce”) for review and comment prior to the adoption of this ordinance per RCW 36.70A.106. On May 18, 2026, Commerce provided substantive comments on parking requirements, which were incorporated into the draft published for the May 28, 2026, Planning Commission meeting; and WHEREAS,adoption of development regulations to implement HB 1757 is statutorily exempt from the State Environmental Policy Act under RCW 43.21C.450(5); and WHEREAS, the City’s Planning Commission, after timely notice, held a public hearing and accepted public testimony on this matter on May 14, 2026, and after closing the hearing held Ordinance 3366 deliberations at an open public meeting on May 28, 2026, recommending to the City Council that Port Townsend Municipal Code Title 17 be amended as proposed; and WHEREAS, the City Council held an open record public hearing on June 1, 2026, and has considered public comments and written submittals and the Planning Commission Recommendations. NOW THEREFORE, based upon the foregoing findings, and based upon the record before the Port Townsend Planning Commission and City Council, the City Council hereby ordains as follows: Section 1. Amendments. A. The new chapter of the Port Townsend Municipal Code is adopted in substantially the same form as set forth in Exhibits A (deletions are strike through and additions are underlines). B. Chapter 17.16 of the Port Townsend Municipal Code is amended in substantially the same form as set forth in Exhibit B (deletions are strike through and additions are underlines). C. Chapter 17.20 of the Port Townsend Municipal Code is amended in substantially the same form as set forth in Exhibit C (deletions are strike through and additions are underlines). D. Chapter 17.31 of the Port Townsend Municipal Code is amended in substantially the same form as set forth in Exhibit D (deletions are strike through and additions are underlines). E. Chapter 12.06 of the Port Townsend Municipal Code is amended in substantially the same form as set forth in Exhibit E (deletions are strike through and additions are underlines). Section 2. Severability. If any sentence, clause, or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase or work of this ordinance. Section 3. Transmittal to Department of Commerce. The City Clerk shall transmit a copy of this Ordinanceto the State Department of Commerce within ten (10) days of adoption of this ordinance. Section 4. Corrections. Notwithstanding any provisions to the contrary in Chapter 1.01.015 of the Port Townsend Municipal Code, staff and the Code Reviser are authorized to update and incorporate changes adopted in this Ordinance into the Port Townsend Comprehensive Plan and the Port Townsend Municipal Code including but not limited to changes to the Land Use Map and Zoning Map. Staff and the Code Reviser are further authorized to make non-substantive edits related to numbering, grammar,spelling, and formatting consistent with this Ordinance. Section 5. Implementation. The City Manager or designee is authorized to implement such administrative measures as may be necessary to carry out the directions of this Ordinance. Section 6. Effective Date. This ordinance shall take effect and be in force 5 days following its publication in the manner provided by law. Ordinance 3366 ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular th meeting thereof, held this 15 day of June, 2026. ________________________ Amy Howard Attest: Mayor ___________________________ Alyssa Rodrigues City Clerk Ordinance 3366 Exhibit A New Chapter of 17.XX PTMC Ordinance 3366 Exhibit B Amendments to Chapter 17.16 PTMC Ordinance 3366 Exhibit C Amendments to Chapter 17.20 PTMC Ordinance 3366 Exhibit D Amendments to Chapter 17.31 PTMC Ordinance 3366 Exhibit E Amendments to Chapter 12.06 PTMC timeline is required by the state application;Conversion must remain in existing o New Chapter: Applicability as of May 2026 Arterial Major Pedestrian Corridor floor commercial required if and - floor; Groundbuilding meets ALL criteriaQualifying conversions in Commercial focus 17.31.120.A. Dwelling units may be added to ground floor of qualifying building if a commercial space is maintained along frontage of the major Existing Example Conversion of Existing Building 722 sf New Unit 4, Unchanged Unit 1 4,333 sf, unit 2 edited since 06/01/26 Council meeting 12.06 Transportation Concurrency Management 8 7 6 5 PP PP XX PP PP XX Boarding, lodging, and Multiplex, medium Title 17 Port Townsend Municipal Code (PTMC) Chapter 17.XXPTMC Conversion or Addition of Dwelling Units in Existing Buildings 17.XX.010. Definitions.The following definitions supplement or supersede the definitions in Chapter 17.08PTMC and are applicable to conversion to residential use or addition of dwelling units within existing buildings. dwelling units located within an existing building that results in a unit count no greater than one and one-half times (150% total) the maximum number of dwelling units otherwise permitted by the underlying zoning designation. The fifty percent increase is calculated as follows: 1.Determine the maximum number of dwelling units permitted on the subject parcel under the applicable base zoning designation, without any bonuses or overlays (base unit count); 2.Multiply the base unit count by 1.5; 3.Round the result down to the nearest whole number. 4.The resulting number is the maximum number of units permitted under this density allowance. This density increase applies only when all dwelling units are located fully within the existing building envelope, as defined in this section. Structural expansion beyond the existing building envelope requires compliance with all applicable parking and zoning standards for the expanded portion. Example: A parcel zoned with a maximum of 4 units; 4 x 1.5 =6. Up to 6 dwelling units may be allowed within the existing building envelope without requiring additional off-street parking. at least three years prior to the permit application for adding housing units. LUP26-028 Conversion or Addition of Dwelling Units in Existing Buildings Revision 6/05/26 1 -of-way that has been designated by the City of Port Townsend as an arterial or future arterial street in the Port Townsend Sustainable Streets Plan (Circulation Plan) or as an ADA Priority Route in the Active Transportation Plan. These routes connect residential areas to commercial centers, transit facilities, or other significant destinations, and provide or areplanned to provided pedestrian infrastructure that supports safe pedestrian access. In addition to arterials and planned arterials, future local access streets within the Rainier/Upper Sims Subareaare designated major pedestrian corridors. Additional major pedestrian corridors include: 1.Taylor Street from Lincoln Street toJefferson Street, and from WashingtonStreetto Water Street 2.Adams Street from Jefferson Street to Water Street 1.Madison Street from Washington Street to Water Street Commented \[AS1\]: Struck to comply with the SMP, which allows residential uses in the downtown waterfront except for on Water Street thth 2.Grant Street between 7and 10Streets th 3.7Street from Grant Street to Gise Street th 4.8Street from Grant Street to Sheridan Avenue th 5.9Street from Grant Street to Sheridan Avenue th 6.10Street from Grant Street to Wilson Street th 7.11Street from Sheridan Avenue to Cleveland Street th 8.Cleveland Street from Sims Way to 7Street th 9.10Street from Jackman Street to Sims Way thth 10.Hill Street from 10Street to 12Street 11.Haines Place 12.Jefferson Street 13.Discovery Road 14.Sims Way LUP26-028 Conversion or Addition of Dwelling Units in Existing Buildings Revision 6/05/26 2 By administrative determination, additional streets may be designated as major pedestrian corridors. --street automobile parking spaces that must be provided as a condition of a residential development permit. The City may recommend, but shall not require as a condition of permit approval, off-street parking for new residential dwelling units located on a major pedestrian corridor. Any such recommendation shall be advisory only and shall not be a basis for permit denial. 17.XX.020. Purpose. The purpose of the conversion provisions is to facilitate the conversion of existing buildings to residential uses, for the purpose of creating new housing units in existing requirements. The intent of these provisions is to fully comply with state requirements (RCW 35A.21.440, 43.21C.450, and 19.27A.270) related to conversions of existing buildingsto residential uses. The creation of units through conversion is additionally intended to increase thenumber of housing units affordable to all income levels. Conversions of existing buildings typically carry lower costs than new construction, creating opportunities for lower price points for residents. The City encourages conversion projectsthat take advantage of available affordability incentives, including the Multifamily Tax Exemption program as described in PTMC 3.15, which applies to most commercial zones eligible under this chapter. Commented \[AS2\]: Edited per Planning Commission proposed amendments 6/28/26, as documented in Errata Sheet item 1 17.XX.030.Applicability. A.Thischapter applies to all development applications that both add dwelling units within an existing building and meet all of the following criteria: 1.The existing building received a final certificate of occupancy at least three years beforethe submission of the development application. 2.The existing building is located in a residential or nonresidential land use district where multifamily dwellings are either a permitted use, an administrative conditional use, or a conditional use. For the purposes of this section, a following: R-I, R-II, R-III, R-IV, C-I/MU, and C-II/MU. 3.The development application does not expand the existing building horizontally, except for the addition of the incidental features listed below that may be necessary to accommodate residential use. However, in no case shall the horizontal expansion for incidental features increase the floor area of the structure by more than five percent. LUP26-028 Conversion or Addition of Dwelling Units in Existing Buildings Revision 6/05/26 3 i.Ramps for ADA access; ii.Replacement windows or sheathing; iii.The addition of material enabling increased insulation; iv.Structural features to improve safety; v.Additions required to comply with construction, energy codes, or building performance standards for residential conversion; vi.Circulation features for fire and life safety; vii.Mechanical equipment; viii.Plumbing and ductwork; or ix.Awnings and bays. B.Modifications. For development applications meeting all of the requirements of subsectionA.1-3, the normal requirements of this Code shall apply during the land use or building permit review required for the application except as such requirements are modified below by this subsection: 1. Density Requirements. Density in existing buildings may be increased up to 50percent morethan the maximum density allowed in the underlying zone, or 150 percent total. Commented \[AS3\]: Rephrase per Planning Commission direction 2. No exterior design or architectural requirements apply to eligible residential development; unless the building is subject to historic preservation code as described in Chapter 17.30 PTMC. 3. Dimensional Requirements. Eligible residential development is exempt from all applicable dimensional requirements, except height restrictions for vertical expansions. 4. Ground Floor Uses. Conversions must maintain ground-floor commercial uses in structures that meet all of the following criteria: a. The building has an existing commercial use on the ground floor;and Commented \[AS4\]: b. The building is in a land use zone and shoreline designationthat requires so that buildings in the shoreline jurisdiction that are on a major pedestrian corridor other than Water Street are commercial use on the ground floor; and not required to retain ground floor commercial, in -floor residential uses on downtown streets except for Water c.The building frontage is ona major pedestrian corridor as defined in Street 17.XX.010. Commented \[cl5\]: Added subsection based off staff recommendation to maintain commercial space in high- Conversions of buildings on arterial or collector roadways in the Commercial focus demand areas. overly shall retain 75% ground floor linear frontage of allowed uses specified in Commented \[AS6R5\]: Further amended following 6/1/26 City Council hearing to clarify when ground floor 17.31.120.A. uses are required Commented \[AS7\]: Added per Planning Commission suggestion on 5/28/26 and documented as the second item in the Errata sheet. LUP26-028 Conversion or Addition of Dwelling Units in Existing Buildings Revision 6/05/26 4 Dwelling unitsmay be added to the ground floor of a building that meets these provided that commercial space is maintained along the building frontage abutting the major pedestrian corridor. Outside of these criteria, dwelling units may be located in any part of the converted building. 5. Recycling and Solid Waste Collection Areas. a. There shall be at least one solid waste collection area provided; b. There shall be at least one recycling collection area provided; c. The Director shall establish the square footage and screening requirements for recycling and solid waste collection areas; and d. The Director shall determine the appropriate screening requirements for recycling and solid waste collection areas, in accordance with Chapter 6.04 PTMC 6. Energy Code. Unchanged portions of an existing building, including existing dwelling units, are not required to comply with the current energy code solely because of the addition of dwelling units. New units created in changed portions of a converted building must meet the requirements of the current energy codeunless the changed portions meet any the following exemptions: a.The square footage of new dwelling units does not exceed 2,500 square feet or 50 percent of the total building square footage, whichever is greater; b. The building owner demonstrates that the projected energy use intensity of the performance standard in RCW 19.27A.210; c. An additional dwellingunit is created within an existing home located in a residential zone; or d. The existing building is a designated landmark or is located within a historic districtestablished by ordinance. 7. Nonconforming Uses, Structures and Sites. Any nonconforming use, nonconforming structure, or nonconforming site may continue when all of the requirements of subsection LUP26-028 Conversion or Addition of Dwelling Units in Existing Buildings Revision 6/05/26 5 C.5.a of this section are met. However, once a final certificate of occupancy is issued, such nonconformities may continue only to the extent allowed by Chapter 17.88 PTMC, whichever is applicable given the location of the development. a. The nonconforming use, nonconforming structure, or nonconforming site must: i. Be associated with the development application meeting the eligibility criteria provided in subsection A of this section; and ii. Have existed prior to submittal of the development application meeting the eligibility criteria provided in subsection A of this section. 8. Prior Participation in an Amenity Incentive System. If the existing building was originally constructed using a bonus obtained through voluntary participation in an amenity incentive system contained in the land use code, then the benefit or amenity provided in exchange for receipt of that bonus must remain and be maintained following the addition of dwelling units under this section. The benefit or amenity must remain and be maintained subject to the original requirements, except that the location of thebenefit or amenity may be moved elsewhere on the site or within the existing building subject to the approval of the Director. 17.XX.040Exceptions. 1.The redevelopment for multifamily residential use of any existing building located fully or partially within a critical area, critical area structure setback, or critical area buffer designated or established under Chapter 19.05 PTMC is subject to the requirements of Chapter 19.05 PTMC. To the extent that any provision of this section conflicts with any requirement contained in Chapter 19.05 PTMC and Chapter 19.05 PTMC shall control. LUP26-028 Conversion or Addition of Dwelling Units in Existing Buildings Revision 6/05/26 6 Chapter 17.20 COMMERCIAL ZONING DISTRICTS Sections: STET 17.20.010 Purposes. A. STET B. The purpose of each commercial district is as follows: 1. C-I Neighborhood Commercial. STET 2. C-II General Commercial. This district accommodates a wide range of general commercial uses. This district provides for those commercial uses and activities which are most heavily dependent on convenient vehicular access, and is located on sites having safe and efficient access to major transportation routes. Uses allowed within this district include retail businesses, professional offices, hotels, restaurants, and personal services shops. Upper-story residential uses are permitted outright. Other specific residential uses are conditional or permitted. This district occupies more area of the city than any other commercial district, and occurs in various locations along Sims Way, Washington Street and Water Street, and in the triangular area bounded by SR 20 to the south, Howard Street to the east, and Discovery Road to the northwest. 3. C-II(H) Hospital Commercial. STET 4. C-III Historic Commercial. STET 17.20.020 Permitted, conditional and prohibited uses Limitations on use. A. STET B. STET C.STET D.STET Table 17.20.020 Commercial Zoning Districts Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; H = Subject to conditional use requirements for historic structures; X = Prohibited; N/A = Not applicable C- DISTRICT C-I C-II C-IIIAPPLICABLE REGULATIONS/NOTES II(H) AGRICULTURAL USES STET FOOD SERVICE USES STET MANUFACTURING USES STET OFFICE USES - STET RECREATIONAL AND CULTURAL USES - STET RESIDENTIAL USES Apartment houses P P PTMC 17.20.030, Bulk, density and dimensional requirements; and Chapter 17.36PTMC, Multifamily Residential Development Standards, and permitted on upper floors only. P P Same as above. Continuum of care facilities PTMC 17.20.030, Bulk, dimensional and density requirements; and PTMC 17.62.050, Approval criteria. Table 17.20.020 Commercial Zoning Districts Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; H = Subject to conditional use requirements for historic structures; X = Prohibited; N/A = Not applicable C- DISTRICT C-I C-II C-IIIAPPLICABLE REGULATIONS/NOTES II(H) Disaster relief sheltersP P P P Disaster relief shelters are not subject to bulk, dimensional, and density requirements. This provision recognizes various facilities located in the various zoning districts during a time of declared public emergency. Emergency indoor housing P2 PTMC 17.20.030, Bulk, dimensional and density requirements; and PTMC 17.62.050, Approval criteria. Emergency indoor day-use P P PTMC 17.62.050, Approval criteria. shelter Emergency indoor overnight P2 P2 PTMC 17.62.050, Approval criteria. shelter Emergency outdoor shelter PTMC 17.62.050, Approval criteria. Table 17.20.020 Commercial Zoning Districts Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; H = Subject to conditional use requirements for historic structures; X = Prohibited; N/A = Not applicable C- DISTRICT C-I C-II C-IIIAPPLICABLE REGULATIONS/NOTES II(H) Permanent supportive housing P P P PTMC 17.20.030, Bulk, dimensional and density requirements. Multifamily housing requires design review. Owner/operator/employee P P P P PTMC 17.20.030, Bulk, dimensional and residences density requirements; such uses shall only be allowed if clearly subordinate and accessory to a primary commercial use and permitted on upper floors only. Employer-provided housing Chapter 17.64PTMC standards for employer-provided housing. Table 17.20.020 Commercial Zoning Districts Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; H = Subject to conditional use requirements for historic structures; X = Prohibited; N/A = Not applicable C- DISTRICT C-I C-II C-IIIAPPLICABLE REGULATIONS/NOTES II(H) Residential treatment facilities P P P PTMC 17.20.030, Bulk, dimensional and density requirements. Safe parking P2* P2* See PTMC17.62.040, Permit review process table; PTMC 17.62.050, Approval criteria; and PTMC 17.62.050(C), Standards for standalone safe parking. *Standalone safe parking facilities that are owned and/or operated by a religious organization shall be reviewed under a Type I-A process instead. Tiny house on wheels X C X X Chapter 17.58PTMC. communities Tiny shelter villages X P X P PTMC 17.20.030, Bulk, dimensional and density requirements; and PTMC 17.62.050, Approval criteria. The PCD director may authorize a waiver of the basic permit fee. Transitional housing P XP P PTMC 17.20.030, Bulk, dimensional and density requirements. Multifamily housing requires design review. COMMERCIAL USES Table 17.20.020 Commercial Zoning Districts Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; H = Subject to conditional use requirements for historic structures; X = Prohibited; N/A = Not applicable C- DISTRICT C-I C-II C-IIIAPPLICABLE REGULATIONS/NOTES II(H) COMMERCIAL RETAIL USES - STET SERVICE USES, HEALTH STET SERVICE USES, LODGING STET PERSONAL SERVICE USES STET SERVICE USES, MISCELLANEOUS STET PUBLIC FACILITY USES STET TEMPORARY USES STET ACCESSORY USES STET OTHER USES STET (Ord. 3335 § 2 (Exh. C.H), 2024; Ord. 3306 § 1 (Exh. H), 2023; Ord. 3166 § 1, 2017; Ord. 3154 § 4(3) (Exh. E), 2016; Ord. 3112 § 1 (Exh. D), 2014; Ord. 3035 §§ 3, 6, 2010; Ord. 2982 § 1, 2008; Ord. 2977 § 1, 2008; Ord. 2924 § 1, 2006; Ord. 2916 § 3, 2006; Ord. 2912 § 3, 2005; Ord. 2825 § 4, 2003; Ord. 2782 § 4, 2001; Ord. 2716 § 4.7, 1999; Ord. 2700 §§ 15, 16, 1999; Ord. 2599 § 2, 1997; Ord. 2571 § 2, 1997). 17.20.025 Design review required. STET 17.20.030 Bulk, dimensional and density requirements. STET Proposed Amendments 5/19/26 Page 1/5 Port Townsend Municipal Code 17.31.030 Rainier Street/Upper Sims Way Subarea Permitted, Conditional, and Prohibited Uses in the C-II(S) District 17.31.030 Permitted, conditional and prohibited uses in the C-II(S) district. A. Table 17.31.030 identifies land uses in the C-II(S) commercial zoning district that are permitted outright (P), subject to a conditional use permit (C), subject to the specific conditional use requirements for uses in commercial historic structures contained in PTMC 17.84.060 (H), prohibited (X), or not applicable (N/A). However, notwithstanding the fact that a use may be permitted outright, additional permits may be required for certain projects. B. Requirements for the uses identified in Table 17.31.030 which are contained within other provisions of this title comprehensive listing of all provisions of this title which may apply to any given use. Specifically, the provisions of PTMC 17.31.050, Bulk, dimensional and density requirements, PTMC 17.31.150, Bulk, dimensional and lot standards by building type, Chapter 17.72 PTMC, Off-Street Parking and Loading, and Chapter 17.76 PTMC, Signs, shall apply to all uses, even if not noted in Table 17.31.030. C. Lighting Requirements in the C-II(S) Commercial Zoning District. Where lighted signs and illuminated areas are permitted, such illuminating devices shall be shaded and directed so as not to provide glare toward any residential district (i.e., R-I, R-II, R-III and R-IV). All exterior lighting, including that to illuminate signs, shall be pointed downward and shielded from direct observation from the air, adjacent properties, and public rights-of-way. Lighting D. Incidental uses which are identified in this title as prohibited or conditional uses within the applicable zoning district shall be considered conditional and processed in accordance with Chapter 20.01 PTMC subject to the approval criteria codified in Chapter 17.84 PTMC. E. Where portions of a site are located within the commercial focus overlay district, the provisions of PTMC 17.31.120, Development standards Commercial focus overlay, shall apply. Table 17.31.030 Commercial Zoning District Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; X = Prohibited; N/A = Not applicable Use Type C-II(S) Specific Use Standards Residential Continuum of Care Facility C Refer to PTMC 17.62.050, Approval criteria. Dwelling, Multifamily Refer to PTMC 17.31.150, Bulk, dimensional and lot standards by Multiplex, Small P building type, for regulations pertaining to applicable residential Multiplex, Medium P building types. Multiplex, Large P Townhouse/Rowhouse, five or more units P Dwelling, Single-Family Attached P Dwelling, Single-Family Detached X The Port Townsend Municipal Code is current through Ordinance 3362, passed December 15, 2025. Proposed Amendments 5/19/26 Page 2/5 Port Townsend Municipal Code Use Type C-II(S) Specific Use Standards Dwelling, Live/Work P Disaster Relief Shelter P Disaster relief shelters are not subject to bulk, dimensional, and density requirements. This provision desired use of various facilities located in the various zoning districts during a time of declared public emergency. Emergency Indoor Day-Use Shelter P2 Refer to PTMC 17.62.050, Approval criteria. Emergency Indoor Overnight Shelter P2 Refer to PTMC 17.62.050, Approval criteria. Emergency Indoor Housing Facility P2 Refer to PTMC 17.62.050, Approval criteria. Emergency Outdoor Shelter P2 Refer to PTMC 17.62.050, Approval criteria. Owner/Operator Residences XP Accessory Dwelling XP Home Occupation XP Chapter 17.56 PTMC, Home Occupations Nursing Homes P Safe Parking P2* See PTMC 17.62.040, Permit review process Table; PTMC 17.62.050, Approval criteria; and PTMC 17.62.050.C, Standards for Standalone Safe Parking. *Standalone safe parking facilities that are owned and/or operated by a religious organization shall be reviewed under a Type I-A process instead. Tiny House on Wheels Communities C Chapter 17.58 PTMC Tiny Shelter Village P2 Refer to Ch. 17.62 PTMC. Industry, Manufacturing and Processing STET Retail STET Services STET Recreation, Education, Public Assembly STET Agriculture STET Transportation, Communications, Infrastructure STET Accessory STET Temporary STET The Port Townsend Municipal Code is current through Ordinance 3362, passed December 15, 2025. Proposed Amendments 5/19/26 Page 3/5 Port Townsend Municipal Code 17.31.070 Rainier Street/Upper Sims Way Subarea Permitted, Conditional, and Prohibited Uses in the M/C(S) District 17.31.070 Permitted, conditional and prohibited uses M/C zoning district. A. Table 17.31.070 identifies land uses in the M/C mixed light manufacturing and commercial zoning district that are permitted outright (P), subject to a conditional use permit (C), prohibited (X), or not applicable (N/A). However, notwithstanding the fact that a use may be permitted outright, additional permits may be required for certain projects. B. Requirements for the uses identified in Table 17.31.070 which are contained within other provisions of this title comprehensive listing of all provisions of this title which may apply to any given use. Specifically, the provisions of PTMC 17.31.080, Bulk, dimensional and density requirements, PTMC 17.31.150, Bulk, dimensional and lot standards by building type, Chapter 17.72 PTMC, Off-Street Parking and Loading, and Chapter 17.76 PTMC, Signs, shall apply to all uses, even if not noted in Table 17.31.070. C. Limitations on Use Buffering Requirements. All sites in the M/C district having a common boundary with residential districts (i.e., R-I, R-II, R-III and R-IV) shall have planted and maintained along such common boundary a view-obscuring greenbelt of shrubs, trees and native vegetation, which will grow to not less than eight feet in height nor less than 10 feet in width within five years, for screening purposes and controlling access. D. Limitations on Use General Requirements. Manufacturing uses shall be subject to the following conditions: 1. Noise. In the M/C district the construction and operation of facilities and uses shall follow best management practices so as to minimize unnecessary conflicts with and impacts to adjacent nonindustrial land or water uses to the extent practicable given the intended use and zoning. 2. Light and Glare. Exterior lighting shall not be used in such a manner that produces glare on public streets or roads and neighboring property. Arc welding, acetylene torch cutting or similar processes shall be performed so as not to be seen from any point beyond the outside of the property. 3. Fire and Safety Hazards. a. The storage and handling of inflammable liquids, liquefied petroleum gases and explosives shall comply with rules and regulations falling under the jurisdiction of the city fire chief, the laws of the state and other local ordinances. b. Bulk storage of inflammable liquids below ground shall be permitted, and the tank shall be located not closer to the property line than the greatest dimension (diameter, length, or height) of the tank. 4. Interferences. Provisions must be made for necessary shielding or other preventive measures against interferences occasioned by mechanical or electrical equipment, uses or processes with electrical apparatus in nearby buildings or land uses. 5. Waste Products. Liquid and solid wastes, storage of animal or vegetable waste which attract insects or rodents or otherwise create a health hazard shall be prohibited. No waste products shall be exposed to view from eye level from any property line in the M/C district. E. Incidental uses which are identified in this title as prohibited or conditional uses within the applicable zoning district shall be considered conditional and processed in accordance with Chapter 20.01 PTMC subject to the approval criteria codified in Chapter 17.84 PTMC. F. Where portions of a site are located within the commercial focus overlay district, the provisions of PTMC 17.31.120, Development standards Commercial focus overlay, shall apply. The Port Townsend Municipal Code is current through Ordinance 3362, passed December 15, 2025. Proposed Amendments 5/19/26 Page 4/5 Port Townsend Municipal Code Table 17.31.070 Manufacturing District Permitted, Conditional and Prohibited Uses Key to table: P = Permitted outright; P2 = Permitted with a Type II process; C = Subject to a conditional use permit; X = Prohibited; N/A - Not applicable Use Type M/C Specific Use Standards Residential Continuum of Care Facility C Refer to PTMC 17.62.050, Approval criteria. Cottage House X Dwelling, Multifamily Refer to PTMC 17.31.150, Bulk, dimensional and lot standards by building type, for regulations pertaining to Multiplex, Small P applicable residential building types. Multiplex, Medium P Multiplex, Large P Townhouse/Rowhouse, five or more units P Dwelling, Single-Family Attached P Dwelling, Single-Family Detached X Dwelling, Live/Work P Disaster Relief Shelter P Disaster relief shelters are not subject to bulk, dimensional, and density requirements. This provision recognizes various facilities located in the various zoning districts during a time of declared public emergency. Emergency Indoor Day-Use Shelter P Refer to PTMC 17.62.050, Approval criteria. Emergency Indoor Overnight Shelter P2 Refer to PTMC 17.62.050, Approval criteria. Emergency Indoor Housing P2 Same as above. Emergency Outdoor Shelter P2 Same as above. Home Occupation XP Chapter 17.56 PTMC, Home Occupations Owner/Operator Residences XP Accessory Dwelling P Permanent Supportive Housing P Refer to PTMC 17.31.150, Bulk, dimensional and lot standards by building type, for regulations pertaining to applicable residential building types. Safe Parking P2* See PTMC 17.62.040, Permit review process table; PTMC 17.62.050, Approval criteria; and PTMC 17.62.050(C), Standards for standalone safe parking. *Standalone safe parking facilities that are owned and/or operated by a religious organization shall be reviewed under a Type I-A process instead. The Port Townsend Municipal Code is current through Ordinance 3362, passed December 15, 2025. Proposed Amendments 5/19/26 Page 5/5 Port Townsend Municipal Code Use Type M/C Specific Use Standards Tiny Shelter Village P2 Refer to PTMC 17.62.050, Approval criteria. Transitional Housing P Refer to PTMC 17.31.150, Bulk, dimensional and lot standards by building type, for regulations pertaining to applicable residential building types. Industry, Manufacturing and Processing STET Retail STET Services STET Recreation STET Transportation, Communications, Infrastructure STET Accessory Accessory Building/Structure P Agriculture P Agriculture is allowed if it is incidental to the principal use and located on the same lot as the principal use or on lot(s) contiguous to a lot on which the principal use is located. Agricultural uses within the commercial zones exclude small livestock farming, pasturing, grazing, poultry, dairying and/or animal husbandry. Marijuana production is not allowed as an incidental use. Electric Vehicle Infrastructure, except with the following features:P Battery Exchange Stations Not Combined with Vehicle Services X The Port Townsend Municipal Code is current through Ordinance 3362, passed December 15, 2025. Proposed Amendments 6/03/26 Page 1/4 Port Townsend Municipal Code Chapter 12.06 TRANSPORTATION CONCURRENCY MANAGEMENT Chapter 12.06 TRANSPORTATION CONCURRENCY MANAGEMENT Sections: Article I. General Provisions 12.06.010 Purpose. 12.06.020 Intent. Article II. Definitions 12.06.030 Definitions. Article III. Applicability and Standards 12.06.040 Applicability. 12.06.050 Exemptions. 12.06.060 Level of service standards. Article IV. Transportation Concurrency Management Review 12.06.070 Transportation concurrency management process. 12.06.080 Transportation concurrency management appeals. Article V. Transportation Concurrency Certification 12.06.090 Transportation concurrency permitting. Article VI. Monitoring 12.06.100 Monitoring transportation concurrency. Article VII. General Administration 12.06.110 Fees. 12.06.120 Other authority. 12.06.130 Severability. Article I. General Provisions 12.06.010 Purpose. The purpose of this chapter is to describe the requirements and procedures for determining the consistency of proposed development projects with the transportation element of the Port Townsend Comprehensive Plan, including meeting the transportation concurrency management provisions of the comprehensive plan. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). 12.06.020 Intent. This chapter implements RCW 36.70A.070 which requires that cities establish level of service standards and ensure that level of service standards are met or that funding of adequate improvements or efforts to reduce the demand for the facilities or services is assured before new development is approved. The city-owned facilities covered by this section include roads, highways and transportation facilities. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). Article II. Definitions 12.06.030 Definitions. The definitions for administering transportation concurrency management are codified within PTMC 12.04.030, -of- 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). The Port Townsend Municipal Code is current through Ordinance 3364, passed May 18, 2026. Proposed Amendments 6/03/26 Page 2/4 Port Townsend Municipal Code Chapter 12.06 TRANSPORTATION CONCURRENCY MANAGEMENT Article III. Applicability and Standards 12.06.040 Applicability. This chapter applies to new development and redevelopment unless exempted in this chapter. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). 12.06.050 Exemptions. The following developments may be exempt from the requirements of this chapter: A. Infill residential development projects located on existing and city recognized platted lots. B. Residential and commercial developments creating 100 peak hour trips or less, unless required by the city of Port Townsend. C. Residential and commercial developments in which level of service impacts have already been mitigated, or an impact is not significant as determined by the city of Port Townsend. D. Conversion of an existing building to a residential use, or addition of residential units to an existing building as regulated by PTMC 17.XX. Commented \[AS1\]: Added per state law E. Further exemptions may be granted as outlined in the latest version of the engineering design standards. F E. Development that is vested prior to the effective date of the ordinance codified in this chapter is exempt for the development approval for which vested status is achieved. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). 12.06.060 Level of service standards. Compliance with the following level of service standards may require an engineering analysis or a transportation impact study to document how level of service and safety is addressed as well as address proportional impact of the proposed development. The latest version of the engineering design standards may include additional details concerning the requirements of a transportation impact study. A. The level of service standard for all city owned and operated streets shall be as designated in the Comprehensive Plan. The city does not provide concurrency management for SR 20. Level of service for SR 20 is established by the Washington State Department of Transportation. B. The level of service standards for transit shall be as designated in the Comprehensive Plan. C. The level of service standards for active transportation shall be as designated in the Comprehensive Plan. New development shall create ADA pedestrian connections and bicycle connections to the ADA priority routes and connected routes respectively whenever feasible. In addition, all new developments shall either construct or pay their pro-rata share for creating ADA priority routes and/or connected routes as identified in the Comprehensive Plan in order to help complete the network. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). Article IV. Transportation Concurrency Management Review 12.06.070 Transportation concurrency management process. A. The department of public works will administer the transportation concurrency management system. B. A transportation concurrency review and determination shall be required for the issuance of any permit for developments that create 20 or more new peak hour trips on any roadway/highway screenline segment, except as provided by the exceptions. C. If a development requires more than one development permit, the transportation concurrency determination shall occur prior to the issuance of the first development permit. D. A transportation concurrency determination shall be required for a nonresidential change in use or modification to an existing building or site if the new use or modification in combination with the existing use generates impacts as identified in subsection B of this section. For purposes of this chapter, a nonresidential change in use or The Port Townsend Municipal Code is current through Ordinance 3364, passed May 18, 2026. Proposed Amendments 6/03/26 Page 3/4 Port Townsend Municipal Code Chapter 12.06 TRANSPORTATION CONCURRENCY MANAGEMENT modification to an existing building will be subject to a transportation concurrency determination for the new increase in demand for the new facilities only. A transportation concurrency determination for a new increase in demand for facilities or services will be performed at the time a complete application for the new demand is received by the city. E. No reservation of transportation capacity will be approved for a change in use which is otherwise not permitted F. A transportation concurrency determination shall be valid as long as the development permit to which it applies is valid, and any change to the proposed development does not change the impact, as measured by the level of service; provided, that if the development has not received a building permit, and the development permit does not have an expiration date, then the concurrency determination will be valid for five years from the approval date of the development permit. G. The impacts of new development will be measured in terms of the transportation capacity removed or added to the level of service standards defined in PTMC 12.06.060 and adopted in the Port Townsend Comprehensive Plan. H. Any development subject to transportation concurrency review shall be granted concurrency approval, if, impacts are added to: (1) the sum of existing transportation facility usage, and (2) the cumulative impacts of all other development in the city for which development approval or transportation concurrency approval has been granted but which have not been built or occupied, and (3) the cumulative demand for new transportation facilities due to determining transportation concurrency shall include the planned capacity of the transportation projects in the capital facilities and utilities and transportation elements of the comprehensive plan and other adopted facility plans which are reasonably funded. I. If transportation concurrency approval is granted, the city shall reserve the capacity required for the development at the time of the concurrency determination. This capacity shall not be returned to the system unless and until the application is, for whatever reason, denied, rejected, invalidated or abandoned; or the city determines that the reservation of capacity to be rescinded under the provisions of PTMC 12.06.090 (Transportation concurrency permitting). Reservation of capacity will only be granted if the development is determined by the city to have a complete application. J. If the transportation concurrency determination results in a finding that the impacts of the proposed development concurrency approval shall not be granted; provided, that the applicant may accept a single 90-day reservation of available capacity, and within the same 90-day period, amend the application so that one or more of the following conditions are met and made conditions of approval: 1. Mitigating measures needed to meet the level of service standards are identified in an impact study (e.g., approved traffic study), and the project development provides the financial commitment to guarantee the funding of the approved mitigating measures and the anticipated completion date of construction of the mitigating measures. For city-owned roads and transportation facilities, the completion of construction shall not be more than six years from the date of the development permit approval. 2. The applicant reduces the traffic impacts to achieve an acceptable level of service by a reduction of the size or intensity of land uses, delay for the committed facility construction, or phasing the development to match future facility construction. 3. The applicant reduces the impacts to achieve an acceptable level of service by scaling the project down, by reducing the demand for new facilities or by providing ways to utilize facilities that are not at capacity. The city shall provide a written statement of the reason for denying an application under this section. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). The Port Townsend Municipal Code is current through Ordinance 3364, passed May 18, 2026. Proposed Amendments 6/03/26 Page 4/4 Port Townsend Municipal Code Chapter 12.06 TRANSPORTATION CONCURRENCY MANAGEMENT 12.06.080 Transportation concurrency management appeals. Any decision to approve, condition or deny a development proposal based on the requirements of this chapter may be appealed according to the appeal procedure for the permit or approval involved in accordance with Chapter 20.01 PTMC and other regulations which may apply. The city shall reserve any available capacity required by a development during an appeal. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). Article V. Transportation Concurrency Certification 12.06.090 Transportation concurrency permitting. Transportation concurrency will be addressed through the land use permitting process. The public works department shall provide a recommendation to the planning and community development department on whether concurrency has been met for the proposed development according to the vesting date. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). Article VI. Monitoring 12.06.100 Monitoring transportation concurrency. The city shall monitor the cumulative impacts of new development by taking traffic counts approximately every five years on selected city-owned roads and evaluation of needed improvements to complete the ADA priority and connected route system through updates to the ADA transition plan and the capital facilities plan. The city may adjust level of service standards through an update to the Comprehensive Plan considering street functionality and environmental impact. The capital facilities plan will include any transportation capacity allocated to development which is determined to be exempt under PTMC 12.06.050. (Ord. 3361 § 4 (Exh. P), 2025; Ord. 2879 § 6.2, 2005). Article VII. General Administration 12.06.110 Fees. The city shall charge a processing fee as set forth by council resolution to any individual or entity that requests a transportation concurrency determination. The processing fee shall be nonrefundable and nonassignable to any other fees. All such concurrency processing fees are to be paid in full upon application for concurrency determination. (Ord. 3051 § 1 (Exh. A), 2010; Ord. 2879 § 6.2, 2005). 12.06.120 Other authority. source. (Ord. 2879 § 6.2, 2005). 12.06.130 Severability. If any section, sentence, clause or phrase of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this chapter. (Ord. 2879 § 6.2, 2005). The Port Townsend Municipal Code is current through Ordinance 3364, passed May 18, 2026. Agenda Bill AB26-072 Meeting Date: June 15, 2026 Agenda Item: X.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: David Dinkuhn/Steve King Date Submitted: June 11, 2026 SUBJECT:Transportation Improvement Board Grant ApplicationPriorities CATEGORY: BUDGET IMPACT:N/A Consent Resolution Expenditure Amount: Varies Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Motion Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: 103 Street SUMMARY STATEMENT: Every year the City has the opportunity to apply for street improvement grants through the Transportation Improvement Board (TIB). This grant source is one of the primary funding sources for street improvements throughout the last 20-30 years. Projects like F Street, Water Street, and more recently Discovery Road (2021) and Lawrence Street (2024) are largely funded by the TIB. TIB offers the four following programs available to the City of Port Townsend: Arterial Pavement Preservation program (APP) - $0.95 million available for Northwest region – recommended grant request < $200,000 Sidewalk Program (Active Transportation) - $1.84 million available for Western Washington excluding Puget Sound – recommended grant request < $500,000 Urban Arterial Program - $6.64 million available for region – recommended grant request < $4.0 million. Complete Streets Program – $40 million statewide – recommended grant request < $1,000,000. Each of these programs has specific eligibility requirements and have grant selection criteria. The City of Port Townsend is in the NW region which includes the North Olympic Peninsula as well as the Bellingham area. Grants are highly competitive. In 2022, the City received a pavement preservation grant for Tyler Street in Uptown. In 2021, the City received a UAP grant for Discovery Road. In 2023, the City received funding for a sidewalk project for Washington and Walker. In the spring of 2024, the City received a complete street grant for Lawrence Street sidewalks and ADA upgrades. This Complete Streets grant was an anomaly opportunity for funding. In 2024, the City also received UAP funding for Lawrence between Harrison and Walker Street. Key grant criteria depends on the program, but generally includes the following: The street must be a Federal Aid route (arterial). See the following link for a map of Federal Aid routes.Under the UAP, APP, and ATP programs: https://www.wsdot.wa.gov/data/tools/geoportal/?config=functionalclass For the Urban Arterial program and the pavement preservation program, the street condition must be poor. There are nuanced requirements under each of these programs. For example, pavement condition in the pavement preservation program must not be so far gone that it can no longer be preserved. The project will score higher if it addresses a high volume of traffic, pedestrians, and cyclists. The project scores higher if it addresses a safety problem or a substandard street. Under the Sidewalk program, sidewalk projects should connect key facilities and fill gaps. ADA compliance is a big component of this program. Under the APP program, projects are limited only to pavement preservation. Chip seal and overlays are only eligible. Street reconstruction is not eligible. All projects must address ADA compliance. Projects score higher if they support growth and development. The cost of a grant application in terms of engineering staff time or subconsultant fees ranges from $5,000 to $15,000 per application. These costs are borne by the Street fund and/or Transportation Benefit District (TBD). Given recent success in grant applications, staff will focus on the projects that are most likely to be funded. Note that the City will not likely be successful in all programs. It is anticipated that the maximum amount of combined grant match would total no more than $600,000 at a match requirement of 20%. This would fund an aggregate of $3 million dollars in grant funds if the City is successful. Note, that $600,000 of TBD funding is programmed for grant match in 2027 and 2028 combined. For the pavement preservation program, staff is recommending requesting $200,000 with $100,000 match to chip seal approximately 2.5 miles of Street. The following street would be chip sealed: Cherry between Blaine and F Streets th 19 between Sheridan and Kearney Blaine between Kearney and Walker For the other three TIB programs (Sidewalk, UAP, and Complete Streets), the following projects are presented for consideration: Lawrence Street sidewalk between WalkerStreet and Kearney Street – constructs sidewalk on one side to complete an ADA priority route from Uptown to Kearney Street. This is a very easy project to deliver as it would be combined with the current Lawrence Street UAP project. Estimated total cost = $0.5M th Discovery Road between 19 Street and San Juan Ave– rebuilds the pavement and installs sidewalk and a bike path on the opposite side of the street of the existing sidewalk. Estimated total cost = $3.65M th 12and Landes intersectionsafety improvements–Small but high impact projectgiven need for ADA compliance and pedestrian safety. Improvements in this area were recommended at an EAR board meeting and the area is highly utilized by transit users and grocery shoppers. Estimated total cost = $0.9M Washington Street between Quincy Street and Taylor Street – reconstructs the severely deteriorating asphalt pavement, stripes for bicycle lanes, and fills in the gaps in the existing sidewalk/curb ramp network. Estimated total cost = $1.2 M The above projects may look familiar to previous years and are all included on the STIP; however, each year staff takes a fresh look at projects to see if there are any new opportunities. Combined Project Overview Map Staff is looking for Council support and suggestions concerning applications this year. It is highly unlikely that all of the projects would be funded. The most likely outcome is award of projects that might total $600,000 in match over 2 years consistent with the TBD goals of leveraging grant resources for pavement repair, pavement preservation, and non-motorized improvements. An updated TBD tracking sheet is attached for reference. TBD funding is being optimized for maximum productivity and is also on the edge. Success in grant applications further leverages and utilizes the funding. Running up against a zero projected balance is a good problem to have. ATTACHMENTS:Updated TBD funding projections CITY COUNCIL COMMITTEE RECOMMENDATION:N/A RECOMMENDED ACTION: Move to support Transportation Improvement Board (TIB) grant applications committing to funding match up to $600,000 million combined for all four grant programs. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance____ Other: REETGrantsTBDType of TBD Investment Committed Committed City Funds for Grant Award for Future Completed - Obligated FundProjectAmountApplicationObligatedAmountWorkExpenseto Date Transportation 305Kearney Street - grant match$ 75,000$ 63,382$ 476,900XXXXX 305Tyler Street Pavement Preservation (TIB)$ 75,000$ 75,000$ 305,000XXX 305Tyler Street - Street reconst. And sidewalk$ 145,000 $ 435,000XXX 305Washington/Walker Sidewalks (TIB S/W)$ 200,000 $ 75,000$ 198,600$ 67,204 XX 305Lawrence - Tyler to Harrison (TIB C.S.)$ 319,000 $ 565,525$ 249,560XXXX 305Disc. Rd and 19th (HSIP) Sheridan$ 35,000$ 35,000$ 644,000$ 145,000XXX 30519th HSIP$ 75,000$ 763,000$ 75,000 XXXX 305SR Bishop HSIP and Bike Ped$ 75,000$ 1,234,000$ 75,000 XXXX 305Lawrence - Harrison to Walker 2024 TIB UAP$ 525,000$ 2,992,000$ 475,000 XXXXXX 3052025 Chip Seal Arterial Pavement Preservation (TIB)$ 160,000 $ 216,000$ 175,000X 1102025 Chip Seal (County Partnership)$ 100,000 $ 106,839X 1102025 Street Repair (San Juan and Mill Road)$ 100,000 $ 333,587XX 3052025 Sidewalk/Traffic calming - Sims Way$ 100,000 $ 100,000 XX 3052026 TIB Chip Seal$ 552,013 1086-0$ 280,060$ 236,072$ 105,834 XX 1102026 Street Repair (Incl. hot spot)$ 465,000 XXXXX Sheridan$ 100,000 $ 183,390X Monroe$ 30,000$ 52,480XX Jackson$ 15,000$ 38,200XX Cook Ave$ 30,000$ 34,510XX San Juan$ 290,000 $ 288,038XXXX 1102026 Chip Seal (Partner with County Crews)$ 268,000 $ 268,000X 3052026 Sidewalk/Traffic calming - San Juan extension a $ 100,000 $ 100,000 XXX 305STP Street Preservation Phase I$ 167,500 $ 500,000$ 167,500 3052027 Sidewalk/Traffic calming$ 50,000$ 100,000XXX 1102027 Street Repair$ 100,000 $ 100,000XX 1102027 Chip Seal (Parnter with County Crews)$ 400,000 $ 200,000XX 3052027 Grant Match$ 300,000 $ 300,000XXXX 305STP Street Preservation Phase II$ 244,500 $ 700,000$ 244,500 3052028 Sidewalk/Traffic calming$ 50,000$ 100,000 1102028 Street Repair$ 100,000 $ 100,000XX 1102028 Chip Seal (Parnter with County Crews)$ 100,000 $ 300,000XX 3052028 Grant Match$ 300,000 $ 300,000XXXX 1102029 Street Repair$ 100,000 $ 100,000XX 1102029 Chip Seal (Parnter with County Crews)$ 300,000 $ 100,000XX 3052029 Grant Match$ 300,000 $ 300,000XXXX 305SS4A Action Plan$ 41,000$ 164,000$ 41,000 XXXX 1102024 TBD Street reconst. Cook, Jefferson, Sheridan$ 100,000 $ 109,000XX 305Discovery Road$ 202,000 $ 4,773,000$ 430,444XXXXXX 305ODT - Plan for Larry Scott to Fort - RAISE Grant$ 50,000$ 50,000$ 250,000XXX 305Cohesive Arterial Street Plan$ 35,000$ 180,000$ 35,000 XXXX 305Lawrence Harrison to Monroe$ 400,000$ 2,347,523$ 298,476 XXXXXX 305Sandy Williams (HOPE 20)$ 75,000$ 759,000$ 75,000 XXXX 305Safe Routes To School NH connections$ 50,000$ 400,000$ 50,000 XXXX TOTAL$ 7,299,013$ - $ 566,382$ 17,748,608$ 3,244,690$ 1 ,984,430$ 1,497,514 TBD 3-YR Fund Balance Analysis Potential TBD Commitment for Future Work$ 3,244,690 TBD Completed and Closed out$ 1,984,430 Obligated TBD$ 1,497,514 TOTAL Committed, Completed, and Obligated$ 6,726,634 Check- Good Total TBD and Fee in Lieu available thru2029$ 6,833,047 Surplus (Deficit)$ 106,412 1.56% Absent Floor Conf hambers nd Location 2Chambers Chambers C Chambers Pacific Room Jeff Co Public Health Chambers Jeff Co ChambersChambers Chambers Chambers Chambers Chambers - ) no action – l. reserve levels) Compost, Chips, Biosolids, – www.cityofpt.us no action Hearing – Chetzemoka Park – website presentation City Item See ROW Vacation Public Hearing ’s SCHEDULE - CITY OFFICES CLOSED CITY OFFICES CLOSED Agenda -- change. Consent Agenda: Madrona Ridge Phase II Final PlatConsent Agenda: Q1 Financial ReportsConsent Agenda: Habitat for Humanity Rossalyn Court Low Income Fee DeferralSpecial Presentation improvements/proje ctsTIB grant optionsConversion or Addition of Dwelling Units in Existing BuildingsSecond readingCappyConsent: Update Chapter 3.04 FundsSpecial presentation/briefing: Optimizing Emergency ManagementFinancial Policies Update (incJCLT and RCO Grant Application for Cappy’s acquisitionSTIP PW Fee resolution update Septage, Account changesAnalysis/suggestion on path forward for consideration of rideshare to MEETINGS CANCELED CANCELED HOLIDAYHOLIDAY Tentative subject CITY only, draft is schedule (This Meeting of Type Equity, Access, and Rights Advisory BoardCivil Service CommissionPlanning Commission City Council Business Meeting Council Culture and Society Committee Climate Action Committee Parks, Recreation, Trees and Trails Advisory BdHousing Fund Board Planning CommissionCouncil Infrastructure and Development CommitteeArts Commission City Council Business Meeting Historic Preservation Committee Time 12:304:156:30 6:00 3:003:004:302:306:303:003:00 6:00 3:00 Date June 11June 11June 11 June 15 June 18 June 19 June 23June 23June 24June 25July 1July 2 July 3July 6 July 7 Day ThursThursThurs Mon Thurs Friday TuesTuesWedThursWedThurs FridayMon Tues Floor Conf nd Chambers 2Chambers Chambers Port Pavilion Chambers Chambers Chambers ANCELED CANCELED CANCELED CCANCELED Workshop Retreat - ting get Council City visory Committee ssion ance and Bud e Tax Ad ging Special Session Planning Commission Equity, Access, and Rights Advisory BoardCivil Service Commission Planning Commission Special S Council FinCity Council Workshop MeeLod 6:3012:304:156:30 9:00 3:006:003:00 1314 July 8July 8July 8July 8 July 13 JulyJuly 13July WedThursThursThurs Mon MonMonTues 2026 Strategic Workplan STATUS BUDGET IMPLICATIONS 2025 FSI STATUS 9ƭƷʹ υўυЊƉͲ υυўυЊЉƉͲ FIVE KEY STRATEGIC PRIORITIES AND INITIATIVES CARRYOVER υυυўυЊЉЉƉ INVEST IN OUR PEOPLE - Build and nurture the capacity of our staff, teams, volunteers, advisory board members, Councilmembers BUDGET IMPLICATIONS STATUS FSI2025 Est: $=$1k, $$=$10k, $$$=$100k and partnerships and provide them the toolsets, skillsets, and mindsets to achieve more together $$ ongoing ЋЉЋЏ /ƚƩĻ Cƚĭǒƭʹ 5ĻĻƦĻƓ ĻƒƦƌƚǤĻĻ ĻƓŭğŭĻƒĻƓƷ ƷŷƩƚǒŭŷ ƚǒƩ ğƌƌΏĻƒƦƌƚǤĻĻ ĻƓŭğŭĻƒĻƓƷ ĭǤĭƌĻ ğƓķ ğƭƭƚĭźğƷĻķ ƷƩğźƓźƓŭ ENGAGE OUR COMMUNITY - Ground civic dialogue in equity and kindness and more deeply and inclusively engage our community BUDGET IMPLICATIONS STATUS FSI2025 Est: $=$1k, $$=$10k, $$$=$100k in decisions that affect their lives and livelihoods $$ ЋЉЋЏ /ƚƩĻ Cƚĭǒƭʹ /ƚƓķǒĭƷ ğ ĭƚƒƒǒƓźƷǤΏǞźķĻ ƭǒƩǝĻǤ Ʒƚ ĬĻƷƷĻƩ ǒƓķĻƩƭƷğƓķ ĭƚƒƒǒƓźƷǤ ƓĻĻķƭ ğƓķ ŭğźƓ źƓƭźŭŷƷƭ źƓƷƚ ƷŷĻ ķźǝĻƩƭźƷǤ ƚŅ ƚƦźƓźƚƓƭ͵ INNOVATE OUR SYSTEMS, STRUCTURES & PROCESSES - Set the City and community up for sustained success through process and BUDGET IMPLICATIONS STATUS FSI2025 Est: $=$1k, $$=$10k, $$$=$100k structure improvements and optimization PEL/interdepartmental coordination $$ ongoing Permitting procedures, configuration, Smartgov efficiency, leveraging 2025 videos $ Fire inspections and business license integration Permitting Fees Update Purchasing Policy Simplification AI Policy (complete) $$ onging Police final push toward agency accreditation ENVISION OUR SUSTAINABLE FUTURE AND DELIVER OUR PRIORITY INITIATIVES - Deliver the 2025-2045 Comprehensive Plan and BUDGET IMPLICATIONS STATUS FSI2025 Est: $=$1k, $$=$10k, $$$=$100k associated priorities to catalyze a financially, socially, and environmentally sustainable future - Implement Housing/Land Use Elements of the Comprehensive Plan, including: $$$ Continue to develop, implement, and refine code and comp plan changes to help unlock and inspire affordable, dense, quality infill development $$$ one-time Implement the community's vision for Evans Vista neighborhood and deliver infrastructure to make it development-ready $$ one-time Develop RFP for Evans Vista phased development $$ one-time Cherry St sale under new Comp Plan zoning $$ one-time Explore options presented in the housing white paper for implementation - fee structures, incentives, infrastructure extensions $$ Economic Development - Housing Infill $$ Economic Development - Improve commercial intensity, beyond commercial corner store/shop allowances in residential zones $ Glen Cove Sewer Study - next steps - Interlocal Agreement with Jeff. Co. $$$ one-time Await State Shoreline Master Program comments and make directive changes after state process $$ one-time Revisit 2009 Housing Property Inventory $$ ongoing Support and coordinate with providers and partners on the unhoused population's needs - Implement Transportation Element of the Comprehensive Plan, including: $$$ one-time Mill Road Roundabout funding/grant application $$ Streets improvements concept plans (like Washington St, San Juan/F, Hastings, Admiralty) - Multimodal Arterial Cohesive Study $$$ Puget Sound to Pacific/Olympic Discovery Trail - in-town connection to Fort Worden and land purchase near Eaglemount (City Lake) Safe Route to Schools Neighborhood Connections Study ADA Transition Plan Update - Parks, Facilities, Right of way $$ Continue to refine Engineering Design Standards Deliver Lawrence Street project (Harrison to Walker) Implement 2026 chip seal program (Sheridan and Monroe) $$$ Transportation Benefit District implementation, including street repair, grants, active transportation Update STIP (incorporate active transportation plan, multimodal arterial street, RAISE grant, and saferoute planning studies) - Implement Parks Element of the Comprehensive Plan and Facilities/Library/Arts & Culture (Community Services) Initiatives: Work with JLT - Cappy's Preservation Implementation, 80 acres $$$ Address parks, facilities, library, and arts & culture funding needs and prioritize future phased investments Establish ER&R Facilities program and budget Consider implementing Library's Level of Service Plan Option #2 $$ Determine an approach to deer management in partnership with State Fish & Wildlife $$$ Anticipate RCO grant application for 2027 cycle Build golf park playground Explore collaboration/LOA with Jefferson County to increase recreation opportunities $$ Inventory public art and consider links to functional plans, maintenance planning for artworks, infusion of art into infrastructure projects $$$ DNR grant implementation $$$ New Public Works facility design Undertake master planning of golf park in collaboration with Friends of the Golf Park Undertake master planning of west-side park $$$ Facilities Updates - City Hall HVAC, Mountain View HVAC/parking, Library HVAC , City Hall and Library elevators (subject to budget and grants) $ Trails (Volunteer Program, street ends, loop trail) $$$ Parks upgrates - Kah Tai Restrooms, Chetzemoka kitchen shelter, demolition of Golden Age Club and Parks house (subject to budget) $$ Collaborate with related agencies to stabilize and plan for the sustainable future of Fort Worden State Park $ Reestablish the 1% for the Arts support for all City public works projects in line with the City Code (complete); implement program - Other Priorities - Deliver on Water/Sewer/Storm Priorities: Capital Facilities Plan Update (2027-2033) - Big effort incorporating all new plans $$$ Standpipe Reservoir Recoating Design OGWS Agreement - Raw Water Rate Model Update Water Rate Model Update Lords Lake East Dam and pipeline construction $$$ Secure permits for sewer outfall project $$$ Wastewater Treatment Plan projects - influent wetwell, SCADA, land acquisition $$$ Lawrence Street Stormwater (Combined Sewer Overflow elimination) - Harrison to Monroe $$$ Evans Vista Neighborhood - construct Mill Road Lift Station $$$ Downtown restroom (in addition to LTAC $) $$$ Collections systems work - Washington Street sewer repair, Monroe lift station, Holcomb sewer upsize $$$ Utility bond issuance BUDGET IMPLICATIONS 2025 FSI STATUS 9ƭƷʹ υўυЊƉͲ υυўυЊЉƉͲ FIVE KEY STRATEGIC PRIORITIES AND INITIATIVES CARRYOVER υυυўυЊЉЉƉ (below is not complete) DELIVER THE BASICS - Provide consistent critical operations, ongoing statutory responsibilities, and core City functions CƚƭƷĻƩ źƓƷĻƩğŭĻƓĭǤ ĭƚƌƌğĬƚƩğƷźƚƓͲ ƒğƓğŭĻ ƩźƭƉƭͲ ğƓķ ĻƓƭǒƩĻ ƷŷĻ ƭƒƚƚƷŷ ƚƦĻƩğƷźƚƓ ƚŅ /źƷǤ ŭƚǝĻƩƓƒĻƓƷ ƦƩƚĭĻķǒƩĻƭͲ ķĻĭźƭźƚƓΏƒğƉźƓŭ ğƓķ ƦǒĬƌźĭ ĻƓŭğŭĻƒĻƓƷ Λ\[ĻŭğƌΉ/ƌĻƩƉΜ $$ ongoing $$ ongoing $$$ one time, $ ongoing Training of elected members, staff and volunteers 5ĻƌźǝĻƩ źƓƷĻŭƩğƷĻķͲ ƭƷƩğƷĻŭźĭ ğƓķ ƭǒƭƷğźƓğĬƌĻ ǝğƌǒĻ ŅƩƚƒ ƷŷĻ /źƷǤ ƚƩŭğƓźǩğƷźƚƓ Ʒƚ ƷŷĻ ĭƚƒƒǒƓźƷǤ ĬǤ ķĻǝĻƌƚƦźƓŭ ğƓķ ƌĻǝĻƩğŭźƓŭ ƦğƩƷƓĻƩƭŷźƦƭͲ ĻƓŷğƓĭźƓŭ ƭƷğŅŅ ğƓķ ƷĻğƒ ƦĻƩŅƚƩƒğƓĭĻͲ ƦƩƚǝźķźƓŭ ĭƌĻğƩ ķźƩĻĭƷźƚƓͲ ƓǒƩƷǒƩźƓŭ ķĻĻƦ ĭƚƒƒǒƓźƷǤ ƦğƩƷźĭźƦğƷźƚƓ ğƓķ ĻƓŭğŭĻƒĻƓƷ ğƓķ ĻƓƭǒƩźƓŭ ĭƚƓƷźƓǒƚǒƭ ķĻƌźǝĻƩǤ ƚŅ ƨǒğƌźƷǤ ƭĻƩǝźĭĻƭ Λ/źƷǤ ağƓğŭĻƩγƭ hŅŅźĭĻΜ ongoing Marketing the City to the visiting public working with LTAC, contractors, and community partners to do so Special projects, communication, engagement and advocacy on behalf of the City and community 5ĻƌźǝĻƩ ƨǒğƌźƷǤͲ ĻŅŅźĭźĻƓƷ ğƓķ ĭǒƭƷƚƒĻƩΏŅğĭźƓŭ ƦĻƩƒźƷƷźƓŭͲ ĭƚķĻ ĻƓŅƚƩĭĻƒĻƓƷͲ ĭǒƩƩĻƓƷ ğƓķ ƌƚƓŭΏƷĻƩƒ ƦƌğƓƓźƓŭ Ʒƚ ƦƩƚƒƚƷĻ ƚƦƦƚƩƷǒƓźƷǤ ğƓķ ƨǒğƌźƷǤ ƚŅ ƌźŅĻ źƓ tƚƩƷ ƚǞƓƭĻƓķ ΛtƌğƓƓźƓŭ ε /ƚƒƒǒƓźƷǤ 5ĻǝĻƌƚƦƒĻƓƷΜ $ ongoing $$ ongoing $$ ongoing $$$ ongoing $$$ ongoing and one-time tƩƚǝźķĻ ƩĻƨǒźƩĻķ ğƓķ ķĻƭźƩĻķ ŅźƓğƓĭźğƌ ƩĻƦƚƩƷźƓŭ ğƓķ ƦƩğĭƷźĭĻƭͲ ƭƷĻǞğƩķ ƦƩĻƦğƩğƷźƚƓ ğƓķ ĭƚƌƌĻĭƷźǝĻ ƚǝĻƩƭźŭŷƷ ƚŅ ĬğƌğƓĭĻķ ŅǒƓķƭ ğƓķ ĬǒķŭĻƷƭ ğƓķ źƓŅƚƩƒğƷźƚƓ ƷĻĭŷƓƚƌƚŭǤ ƓĻĻķƭ Ʒƚ ĻƓƭǒƩĻ ƷŷĻ ƭǒĭĭĻƭƭ ƚŅ ğƌƌ ķĻƦğƩƷƒĻƓƷğƌ ğƓķ ƚƩŭğƓźǩğƷźƚƓğƌ ğĭƷźǝźƷźĻƭ͵ ΛCźƓğƓĭĻ ε ĻĭŷƓƚƌƚŭǤ {ĻƩǝźĭĻƭΜ $$ ongoing $ ongoing $$ ongoing $$ ongoing $ ongoing $ ongoing $ ongoing $$ ongoing Coordinated front desk internal and external service via the Public Experience Liaisons $$ ongoing Management of city Investment and debt according to government regulations $ ongoing Fiscal responsibility and management of city resources $$ ongoing Updated Fee Schedules ƚ ǒƦƌźŅƷ ƚǒƩ ĭƚƒƒǒƓźƷǤ ƷŷƩƚǒŭŷ ƩĻğķźƓŭͲ ƌĻğƩƓźƓŭͲ ĭƚƓƓĻĭƷźƚƓ ğƓķ ĭƩĻğƷźǝźƷǤ Λ\[źĬƩğƩǤΜ Ώ ƓƚƷĻ ƷƩğƓƭźƷźƚƓ Ʒƚ /{5 Ǟ źƓƷĻŭƩğƷĻķ ƭƷğƷĻƒĻƓƷ Ʒƚ ĭƚƒĻ ƚ ǞƚƩƉ źƓ ƦğƩƷƓĻƩƭŷźƦ ǞźƷŷ ƚǒƩ ĭƚƒƒǒƓźƷǤ Ʒƚ ƦƩƚǝźķĻ ğ ƭğŅĻ ğƓķ ĭƚƒƦğƭƭźƚƓğƷĻ ĻƓǝźƩƚƓƒĻƓƷ ǞŷźƌĻ ƩĻķǒĭźƓŭ ĭƩźƒĻ ğƓķ ƷŷĻ ŅĻğƩ ƚŅ ĭƩźƒĻ ΛtƚƌźĭĻΜ 5ĻǝĻƌƚƦ ğƓķ ķĻƌźǝĻƩ źƓƓƚǝğƷźǝĻ ƭƚƌǒƷźƚƓƭ ƷŷğƷ ğƌƌƚǞ ƷŷĻ /źƷǤ Ʒƚ ƒğƉĻ ğ ƦƚƭźƷźǝĻ ƌĻğƦ ŅƚƩǞğƩķ źƓ ķĻǝĻƌƚƦźƓŭ ğƓķ źƓǝĻƭƷźƓŭ źƓ ƦĻƚƦƌĻ ğƓķ ƦĻƩŅƚƩƒğƓĭĻͲ ķƩźǝźƓŭ ĭƚƚƩķźƓğƷĻķ ƷĻğƒ ĻǣĭĻƌƌĻƓĭĻͲ ĭƚƓƷźƓǒƚǒƭ źƒƦƩƚǝĻƒĻƓƷͲ ğƓķ ğĭĭƚǒƓƷğĬźƌźƷǤ ΛtĻƚƦƌĻ ε tĻƩŅƚƩƒğƓĭĻΉIwΜ Employee engagement, including development and delivery of an engagement survey and accompanying manager follow up approach tƩƚǝźķĻ ƨǒğƌźƷǤ ğƓķ ƩĻƌźğĬƌĻ źƓŅƩğƭƷƩǒĭƷǒƩĻ ƷŷğƷ ǒƓķĻƩƦźƓ ğ ŷĻğƌƷŷǤ ƭƚĭźğƌͲ ĻƓǝźƩƚƓƒĻƓƷğƌ ğƓķ ĻĭƚƓƚƒźĭ ŅğĬƩźĭ ğƓķ ƭǒĭĭĻƭƭ ƚŅ tƚƩƷ ƚǞƓƭĻƓķ ğƓķ ƚǒƩ ĭƚƒƒǒƓźƷǤ ΛtǒĬƌźĭ ‘ƚƩƉƭΜ Transportation engineering (Non-motorized, traffic, accident analysis, grant writing) 9ƓŭğŭĻ ğƓķ ĭƚƒƒǒƓźĭğƷĻ ǞźƷŷ ƚǒƩ ĭƚƒƒǒƓźƷǤ Ʒƚ Ĭǒźƌķ ƷƩǒƭƷ ğƓķ ĭƚƓŅźķĻƓĭĻͲ ƦƩƚķǒĭƷźǝĻ ƦğƩƷƓĻƩƭŷźƦƭͲ ğƓķ ğ ƒƚƩĻ ĭźǝźƌ ĭźǝźĭ ķźğƌƚŭǒĻ Ʒƚ ĻƓƭǒƩĻ ƚǒƩ ĭƚƒƒǒƓźƷǤ źƭ ƦƚƭźƷźǝĻƌǤ ĻƒƦƚǞĻƩĻķ Ʒƚ ķĻƷĻƩƒźƓĻ źƷƭ ƚǞƓ ŅǒƷǒƩĻ͵ 9ŅŅĻĭƷźǝĻƌǤ ƒğƩƉĻƷ ƚǒƩ ĭƚƒƒǒƓźƷǤ Ʒƚ ĻƓğĬƌĻ tƚƩƷ ƚǞƓƭĻƓķ Ʒƚ ƩĻĭĻźǝĻ ƦƚƭźƷźǝĻ ĬĻƓĻŅźƷƭ ŅƩƚƒ ƒƚƩĻ ƭǒƭƷğźƓğĬƌĻ ƷƚǒƩźƭƒ͵ Λ/ƚƒƒǒƓźĭğƷźƚƓƭ ğƓķ ağƩƉĻƷźƓŭΜ Develop and manage content and publication through City channels (newsletter, quarterly, social media, press releases, website, annual report) Provide priortitized support for the entire organization on major projects/initiatives Liaise with LTAC and related agencies to curate and coordinate marketing campaigns Chart and lead a strategic approach to communications and engagement Serve as Public Information Officer as main contact and coordinator with media, handling or advising on high profile issues Liaise with organizations, neighborhood groups, and the general public as part of campaigns, engagement events, and activities LAST REVISION DECEMBER 3, 2025 tğŭĻ Ћ ƚŅ Ћ