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HomeMy WebLinkAbout092126 City Council Business Meeting PacketPORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. September 21, 2026 • Attend in person or virtually via computer or tablet at Hells:.//zoon ..us/i/98187633367 enter the Webinar ID 98187633367 • Phone only - United States: Local Dial In—1(253)215-8782„98187633367#. If you wish to provide public comment press *9 to raise your hand. • Submit public comment to be included in the meeting record to: 1jtt s:// ubliccomment.lillout.com/cit of t • If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: cler .su ort �� ohs L Call to Order II. Roll Call III. Changes to the Agenda IV. Proclamation(s) or Special Presentation(s): A. Abor Day Proclamation B. "Nine to Five" Day Proclamation C. Dementia Awareness Day Proclamation D. Oath of Office- Police Officers 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 VIL Executive Session — Pursuant to RCW 42.30.110(1)(i)) Discussion with legal counsel about current or potential litigations (Approximately 15 minutes)- Potential Action to Follow VIIL 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: August 3, 2026 IX. Old Business A. Ordinance 3370 Adopting 2026 Supplemental Budget Appropriations #2 Proposed Action: Move to approve Ordinance 3370 Adopting 2026 Supplemental Budget Appropriations 92 i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action X. New Business A. Growth Management Hearings Board Joint Stay Request Proposed Action: To be determined following Executive Session. All actions shall be made in public session. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action B. Ordinance 3371 Vacating a Portion of the McClellan Street Right -of -Way Located Between 9fh Street and loth Street Associated with Vince's Village, City File No. LUP26-013; Reserving a Perpetual Sanitary Sewer Easement; Accepting Affordable Housing as Value Received; Requiring Recordation of an Affordable Housing Covenant and Lot Line Adjustment; Providing for Accrual and Vesting of Title; Authorizing Recordation; and Establishing an Effective Date Proposed Action: Move to waive Council Rules and approve Ordinance 3371 Vacating a Portion of the McClellan Street Right -of -Way Located Between 91h Street and 101h Street Associated with Vince's Village, City File No. L UP26-013; Reserving a Perpetual Sanitary Sewer Easement; Accepting Affordable Housing as Value Received; Requiring Recordation of an Affordable Housing Covenant and Lot Line Adjustment; Providing for Accrual and Vesting of Title; Authorizing Recordation; and Establishing an Effective Date i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action C. Resolution 26-018 Declaring an Emergency, Waiving Public Bidding Requirements, and Ratifying the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Damage to Sewer Beneath Valley Trail Near 3105 Sage Lane Proposed Action: Move to approve Resolution 26-018 Declaring an Emergency, Waiving Public Bidding Requirements, and Rating the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Damage to Sewer Beneath Valley Trail Near 3105 Sage Lane Staff presentation and Council questions Public Comment iii. Council deliberation and action XI. Presiding Officer's Report A. Department of Navy XIL Suggestions for Future Agendas XIII. Comments from Council XIV. Adjourn city of port, Townsend Y PROCLAMATION WHEREAS, in 1872, the Nebraska Board of Agriculture declared that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and Arbor Day is now observed throughout the nation and the world; and WHEREAS, the City of Port Townsend is a Tree City USA partner committed to effective urban forestry management; and WHEREAS, trees are a source of carbon mitigation. Trees buffer our carbon footprint. They store carbon on timescales relevant to climate change. We need them at least as much as they need us; and WHEREAS, trees can reduce the erosion of topsoil by wind and water, moderate the heat island effect with urban canopy, clean the air, produce oxygen, and provide habitat for wildlife; and WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our hearths, and countless other wood products; and WHEREAS, the Arbor Day Foundation and Tree City USA promote the concept of `No Net Loss', so that when trees are lost in a community, they are replaced with `The Right Tree in the Right Place'; and WHEREAS, trees, parks, trails and open space in our city beautify our community; enhance the economic vitality of business areas, and are a source of joy and renewal; and WHEREAS, autumn is the recommended time to plant trees in our climate and the Governor has declared the month of October to be Urban and Community Forestry Month; NOW, THEREFORE, I, Amy Howard, Mayor of the City of Port Townsend, on behalf of the City Council, do hereby proclaim October 3 as Arbor Day and urge everyone to plant trees for urban canopy, to produce oxygen, and to promote the well-being of this and future generations. Amy Howard, Mayor city Port n ��Y, ";x Townsencl PROCLAMATION WHEREAS, Dolly Parton, one of America's most beloved and influential entertainers, passed away on August 25, 2026, in Nashville, Tennessee, at the age of 80, leaving behind a legacy that reached nearly every corner of the world; and WHEREAS, over a career spanning more than six decades, Dolly Parton achieved extraordinary success as a singer, songwriter, actress, and businesswoman, penning many enduring songs and starring in beloved films; and WHEREAS, Dolly Parton's generosity shaped her legacy as much as her music, from disaster relief efforts to support for medical research, and above all through Dolly Parton's Imagination Library, which she founded in 1995 in honor of her own father, who never learned to read, with a simple mission: to mail a new, free book to every enrolled child each month from birth until age five, regardless of family income; and WHEREAS, what began as a small program in Tennessee has grown into a global movement spanning the United States, Canada, the United Kingdom, and Australia, gifting more than 332 million books to children and inspiring a lifelong love of reading and learning along the way; and WHEREAS, here in Jefferson County, the Port Townsend Rotary Club launched a local Imagination Library program in 2021, and in the five years since, nearly 1,000 children have received books addressed especially to them, a direct reflection of Dolly Parton's enduring belief that every child deserves the chance to dream, learn, and imagine; and WHEREAS, Dolly Parton's "9 to 5" gave voice to working people everywhere, celebrating perseverance, humor, and solidarity in the workplace, values that resonate deeply within our own working waterfront community; and WHEREAS, the City of Port Townsend joins communities across the nation and around the world in mourning her passing while celebrating a life defined by generosity, authenticity, and joy; NOW, THEREFORE, I, Amy Howard, Mayor of the City of Port Townsend, do hereby proclaim September 25 as "NINE TO FIVE" DAY in the City of Port Townsend in perpetuity, in honor of Dolly Parton, and call upon the community to celebrate her music, her generosity, her working class solidarity, and the countless ways her legacy continues to touch lives here in Jefferson County and around the world. Amy Howard, Mayor city of port, Townsend Y PROCLAMATION WHEREAS, September 21 is recognized internationally as World Alzheimer's Day, marking the anniversary of the founding of Alzheimer's Disease International; and WHEREAS, World Alzheimer's Day is dedicated to raising awareness about Alzheimer's disease and other forms of dementia, focusing on education, stigma reduction, and support for individuals and their families; and WHEREAS, the City of Port Townsend is committed to equity, accessibility, and the rights of all members of our community, including those living with dementia; and WHEREAS, communities can become more welcoming and supportive places for people living with dementia when residents have opportunities to learn about dementia, recognize its impact, and understand how they can help; and WHEREAS, people living with dementia and their care partners benefit from access to information, education, community connections, and resources that support their well-being and participation in community life; and WHEREAS, increasing awareness and understanding of dementia helps build a community where people living with dementia can continue to participate, contribute, and belong; and WHEREAS, the City of Port Townsend, Adult and Aging Services of Coastal Washington, Dementia Friends Washington, Mirador Magazine, and community volunteers are working together to build a more supportive and welcoming community for people living with dementia and their care partners; and NOW, THEREFORE, I, Amy Howard, Mayor of the City of Port Townsend, on behalf of the City Council, do hereby proclaim September 21 as Dementia Awareness Day In the City of Port Townsend, and encourage all residents to learn more about dementia and support efforts to create a dementia -friendly community. Amy Howard, Mayor CITY OF PORT TOWNSEND STATE OF WASHINGTON, ) ) ss. OATH OF OFFICE County of Jefferson ) I, Shaina Gonzales, do solemnly swear that I am a Citizen of the United States and the State of Washington; that I will support the Constitution and Laws of the United States and the Constitution and Laws of the State of Washington, and will to the best of my judgment, skill and ability, truly, faithfully, diligently and impartially perform the duties of the office of Police Officer in and for the City of Port Townsend, Jefferson County, Washington, as such duties are prescribed by law. Shaina Gonzales Subscribed and sworn to before me this 215t day of September 2026. Thomas Olson, Chief of Police CITY OF PORT TOWNSEND STATE OF WASHINGTON, ) ) ss. OATH OF OFFICE County of Jefferson ) I, Andrew Koorn, do solemnly swear that I am a Citizen of the United States and the State of Washington; that I will support the Constitution and Laws of the United States and the Constitution and Laws of the State of Washington, and will to the best of my judgment, skill and ability, truly, faithfully, diligently and impartially perform the duties of the office of Police Officer in and for the City of Port Townsend, Jefferson County, Washington, as such duties are prescribed by law. Andrew Koorn Subscribed and sworn to before me this 215t day of September 2026. Thomas Olson, Chief of Police CITY OF PORT TOWNSEND STATE OF WASHINGTON, ) ) ss. OATH OF OFFICE County of Jefferson ) I, Walker Ward, do solemnly swear that I am a Citizen of the United States and the State of Washington; that I will support the Constitution and Laws of the United States and the Constitution and Laws of the State of Washington, and will to the best of my judgment, skill and ability, truly, faithfully, diligently and impartially perform the duties of the office of Police Officer in and for the City of Port Townsend, Jefferson County, Washington, as such duties are prescribed by law. Walker Ward Subscribed and sworn to before me this 215t day of September 2026. Thomas Olson, Chief of Police D. y.. Isyour If -, work, If Ag..da written what is Im., or it—, public the .W. . PI.— en —bi— business f .t. stateTyp. t f... of the Last Name Email I. City public which Public Public updated (optional) (optional) Limits? c.mm.. .... Public comment Written public comment is limit,dt. 2350 ch—ct— (with sp.c-). Ify.. exceed this amount, y.0 will b. ...bl. t. submit this form ..tit y... c.mm.mm2350ch..ct—.,I.— Hearing? Hearing? Mon Sep 212026 11:42:00 Why,cd b—d.—I GMT- Work In 0700 Po' Rod b—d.... have long history ,,the US as a symboloflabor organizing, .,d, by—c—o,,the power of our speak) ,g,, unison for the causes that are Important to us. We wear the (Pacific Tow— Gc,c,.[ bandanas- as ho,p .. .... k—hc,N, — b—ds, o, h—c, else we feel -Icd to d,spl.ythcm - whc,c,,, w, speak as workers, o, stand In solidarity with each other. Daylight d C,ty public Time) Limits — S- somebody---g o,c?Th-kthcm for the wo,kthcydo, and for advocating fo,tho needs of—k— throughout our community! No User: Printed: Warrant Request Date: DAC Fund: j lang &cityofpt.us 09/08/2026 - 10:09AM 9/4/2026 Batch: 40905.09.2026 - 2026 08B PR AP Paper Che STATE OF WASHINGTON CITY OF PORT TOWNSEND c4of port lv J7II/� +�;: l r � firJ Tbwnsend I certify under penalty of perjury under the laws of the State of Washington that the materials have been ftmlished, the services rendered, the labor performed as described, or that any advance payment is due and payable pursuant to acontract or is available as an option for full or partial fulfillment ofa contractual obligation, and that the claim is a just, due and unpaid obligation against the City of Port Townsend. I am authorized to authenticate and certify to this claim. Voucher or check nos. through _ in the amount of $ -- AND,.. ( l g 2 F n Xcct r, Jodi Adams Date Finaneqana er, Jenny 1, as Mayor of the City of Port Townsend, Washington, do hereby certify that the Voucher and Checks contained in this Blanket Voucher Approval Document were approved for payment by action of the Port Townsend City Council on 2026. Mayor RM 1 United Good Neighbors 000180144 20.00 2 Teamsters Local 589 000180143 6,049.00 Page Total: $6,069.00 Grand Total: $6,069.00 AP -Blanket Voucher Approval Document (09/08/2026 - 10:09 AM) Page 1 Accounts Payable Blanket Voucher Approval Document City0f,oy User: jlang(acityofpt.us Tdwnsend, Printed: 09/08/2026 - 9:55AM Warrant Request Date: 9/4/2026 DAC Fund: Batch: 40904.09.2026 - 2026 08B PR AP STATE OF WASHINGTON CITY OF PORT TOWNSEND I certify under penalty of perjury under the laws of the State of Washington that the materials have been furnished, the services rendered, the labor performed as described, or that any advance payment is due and payable pursuant to a'contract or is available as an option for full or partial fulfillment of a contractual obligation, and that the claim is a just, due and unpaid obligation against the iCy of Port Townsend. I am authorized to authenticate and certify Co this claim. Voucher or check nos. through in the amount of AND Is Fin a Eo Jodi Adams Date Finance pager, Jenny Mu phy Date I, as Mayor of the City of Port Townsend, Washington, do hereby certify that the Voucher and Checks contained in this Blanket Voucher Approval Document were approved for payment by action of the Port Townsend City Council on , 2026. Mayor Line Voucher No. Amount: 1 American Family Life Assurance 000000000 182.93 2 AWC Employee Benefits Trust 000000000 74,442.66 3 Dept. of Retirement Systems 000000000 11,409.38 4 ICMA Retirement Corporation 000000000 9,914.87 5 Kitsap Bank 000000000 113,253.26 6 Navia Benefits Solution 000000000 1,417.01 7 Washington Teamsters Welfare Trust 000000000 143,694.00 8 Retirement Systems,Department of 000000000 50,400.20 9 Association of Washington Cities 000000000 2,035.92 10 Western Conference 000000000 6,635.24 Page Total: Grand Total $413,385.47 $413,385.47 AP -Blanket Voucher Approval Document (09/08/2026 - 9:55 AM) Page 1 DRAFT August 3, 2026 City Council Business MeetingPage 1 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 2 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 3 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 4 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 5 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 6 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 7 of 8 DRAFT August 3, 2026 City Council Business MeetingPage 8 of 8 PORT TOWNSEND CITY COUNCIL CONSENT AGENDA September 21, 2026 A. Approval of Bills, Claims and Warrants: Vouchers 180137 through 180257 in the amount of $1,675,404.73 Electronic Fund Transfers in the amount of $413,385.47 B. Approval of Minutes: August 3, 2026 Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item from the consent agenda). Agenda Bill AB26-113 Meeting Date: September 21, 2026 Agenda Item:IX.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Jodi Adams, Director of Date Submitted: September 17, 2026 Finance & Technology Services Department:Finance Contact Phone:360-379-4403 SUBJECT: Ordinance 3370 Adopting 2026 Supplemental Budget Appropriations#2 CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: $416,800 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: 010-041 GF - Finance General SUMMARY STATEMENT: This is the second proposed budget supplement for 2026. 2026 Supplemental #2 Summary Description Amount Regular Supplemental Items (Including Transfers & Internal Loans) $854,611 Carryforwards $32,800 Total Expenditure Increase (Including Transfers & Loans) $887,411 Money moving between funds but not Less: Internal Transfers and Charges Between City Funds $455,611 leaving the City Excludes internal reimbursements, cost allocations, Actual New Spending all interfund transfers & interfund loan repayments. $431,800 Also includes carryforwards Actual New Spending Carryforward vs New Spending Amount New Spending From Carryforwards$32,800 Other New Spending$399,000 Total$431,800 This supplement includes $399,000 of projected new spending of which most is for the comprehensive plan appeal. Other increases in spending result from the normal course of business and tight budgeting. The General Fund has adequate reserves to address this new spending authority. However, typically due to open positions and other work that does not get completed, the General Fund end of year actuals usually are less than budgeted. It is important to ensure spending authority is addressed per audit requirements. All expenses must be approved by Council. Thebudget supplementincludes all unbudgeted expenditures. The City isnot required to reduce or credit unspent line items or to increase revenue during the supplement process; therefore, an increase in the expenditure line item does not necessarily mean an increase in spending as there may be an offset under another line item that is not reflected in the supplement process. The 2026 Budget Supplement #2 includes: General Fund (010): Several Police Department professional service contracts require additional appropriations in the 2026 budget due to increased utilization, contractual requirements, or services added after the initial budget was adopted. Jefferson County Sheriff’s Office – Patrol Services: The City maintains an agreement with the Jefferson County Sheriff’s Office to provide supplemental patrol coverage when City Police Department positions are vacant or when officers are attending the police academy. Increased utilization of this service during 2026 has resulted in expenditures exceeding the amount originally budgeted. Jefferson County – Municipal Jail and Legal Services: The City has an existing agreement with Jefferson County for municipal jail and related legal services. Under the agreement, the City is responsible for certain inmate- related medical expenses. The contract includes a minimum expenditure threshold, which has been reached during 2026, resulting in additional medical costs that must be budgeted for the remainder of the year. JeffCom – 911 Services: Additional funding is required to support increased costs associated with emergency dispatch services provided through the Jefferson County Emergency Communications Center (JeffCom). Nash Consulting: This professional services contract was added during 2026 to provide consulting services requested by the Police Department. The service was not included in the original 2026 adopted budget and therefore requires a mid-year budget adjustment. Police Department Donation – Speed Trailer: The Police Department received a $5,000 donation designated for the purchase of a speed trailer. An additional expenditure appropriation is necessary to authorize the purchase and align the budget with the donated funds. The expenditure will be fully offset by the corresponding donation revenue. Police Department – Furniture Replacement: The Police Department budgeted $3,500 in 2025 for the replacement of chairs. The purchase was completed in 2026, and the actual cost exceeded the original appropriation. A carryforward appropriation of $14,300 is being added to the 2026 budget to cover the actual expenditure. Finance Department -The conversion of business licensing services from HdL to SmartGov took longer than anticipated. As a result, the City needed to renew its existing HdL database subscription for an additional year. The transition to SmartGov is expected to be completed in fall 2026, at which time the City will discontinue its HdL subscription. The addition of business licensing functionality to SmartGov will not result in an increase to the City’s existing SmartGov subscription costs. Planning and Community DevelopmentDepartment –PCD received a substantial professional services appropriation as part of the 2026 adopted budget. Due to the Comprehensive Plan Appeal, three planned projects—Code Updates, the Fee Study, and the Housing Inventory—were unable to be completed in 2026. The Department is requesting to reallocate the associated unspent professional services appropriation to offset the cost of contracting for outside plan review services necessitated by the vacant Building Official position. In addition, the Department is requesting an increase to its professional services budget to address additional work and anticipated consulting needs resulting from the Comprehensive Plan appeal. People and Performance Department – Council is requesting to hire a professional consultant to do outreach, public engagement, and creates a task force on City Manager recruitment. This process would begin at the end of 2026 and finish in 2027. Anticipated total expense would be around $45,000 for full recruitment service. Streets and Transportation Benefit District (110 and 111): Street fund pavement repair and preservation projects did not include engineering support. This supplement increases funding for engineering support with a direct reimbursement from the Transportation Benefit District. The fund 111 balance will th be presented on September 14 during the City council workshop on streets. Significant development review costsfor engineering is included. Library (120): Self-Checkout Kiosk Upgrade: This item is not included on the supplemental budget sheet because no additional appropriation is required. However, it represents an additional expense to the Library Fund in 2026. The vendor will no longer provide support forthe Library’s existing self-checkout kiosks, necessitating an upgrade to two machines at a total cost of $12,760. The expense will be absorbed within the existing Library Fund budget through savings in other areas and will not require an increase in the Fund’s total appropriations. Community Services (199): The Facilities ER&R model professional services contract has required additional work beyond what was initially anticipated and budgeted. A carry forward from 2025 and a small increase in the professional services appropriation is requested to cover the additional work necessary to complete the project. Public Works(412,417,440,450,455,540,555): Water Quality – Water Rights Study: A $20,000 professional services appropriation is requested to conduct a water rights study in support of the City’s Water Quality program. The study was not included in the original 2026 budget and is necessary to address current water rights needs. All funds, increase cost for engineering development review services Sewer Capital – Interfund Loan Repayment: During development of the 2026 budget, the expenditure for repayment of the water meter interfund loan from the General Fund was inadvertently omitted from the Sewer Capital Fund budget. An expenditure appropriation is being added to provide for the scheduled interfund loan repayment. Information Technology (IT) Operating (520): With the onset of AI and datacenters, and changes to the economy, the cost of computers and technology equipment has drastically increased. The original budget for the planned computer replacements through the IT ERR fund is higher than expected. An increase of $12,000 to the original budget is needed. ATTACHMENTS: 1. Ordinance 3370 2. Exhibit 1 City of Port Townsend 2026 Supplemental #2 Detail CITY COUNCIL COMMITTEE RECOMMENDATION: At the August 10, 2026 meeting, the Finance and Budget Committee recommended forwarding the Supplemental Budget #2 request to City Council. RECOMMENDED ACTION: Move to approve Ordinance 3370 Adopting 2026 Supplemental Budget Appropriations #2. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance 3370 Other: Ordinance 3370 Page 1 of 3 ORDINANCE NO. 3370 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING 2026 SUPPLEMENTAL BUDGET APPROPRIATIONS #2 WHEREAS, the City Council adopted the 2026 Budget under Ordinance 3359 on November 17, 2025 and was set forth in the document entitled “City of Port Townsend 2026 Budget”; and WHEREAS, new or unforeseen projects and costs were not identified at the time of the 2026 Budget adoption; and WHEREAS, for some capital projects, funds appropriated in 2025 were not spent due to project delays or project changes; and WHEREAS, staff recommends appropriating funds for the new and unforeseen projects and costs as identified for 2026; and WHEREAS, the City Council reviewed the supplemental budget requests #1 on April 20 and May 4, 2026 and adopted supplement budget appropriations #1 on May 4, 2026 under Ordinance Number 3364; and, WHEREAS, the City Council reviewed the supplemental budget appropriations #2on September 4, 2026. NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. 2026 Supplemental #2 Budget Adopted. The supplemental budget for the City of Port Townsend, Washington, for the fiscal year 2026, is adopted as Exhibit Aentitled “City of Port Townsend Budget 2026Supplemental#2Detail”, making revenue and expenditure revisions. Section 2. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, line item, section, portion of this ordinance or its attachments, or the invalidity of the application to any person or circumstance shall not affect the validity of the remainder of the ordinance or the validity of its application to other persons or circumstances. Section 3. Effective Date. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. Ordinance 3370 Page 2 of 3 ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of the majority of the City Council plus one, at a regularbusinessmeeting thereof, held this21stday of September2026. ___________________________________ Amy Howard Mayor Attest: _____________________________ Alyssa Rodrigues City Clerk Ordinance 3370 Page 3 of 3 Exhibit A City of Port Townsend Budget 2026 Supplemental #2 Detail City of Port Townsend 2026 Supplemental #2 Detail Adopted 2026 Supplemental #2 Supplemental #2 New Budget Item DescriptionAccount Description Funding Source Reason Item BudgetIncrease Request Total General Fund - Supplemental Appropriations Planning and Community DevelopmentProfessional Services- 135,000 135,000 General Fund Reserve Comp Plan GMHB Appeal Police Dept. Professional Services- 60,000 60,000 General Fund ReserveJeff Co Sheriff patrol coverage Police Dept. PenCom ServicesProfessional Services- 40,000 40,000 General Fund Reserve PenCom transcrition services City Manager Vehicle Machinery & Equipment- 28,000 28,000 General Fund ReserveCity Manager fleet purchase City Manager Accrual PayoutSalaries & Wages- 27,000 27,000 General Fund Reserve City Mgr departure requires payout of remaining vacation City Manager Recruitment - public engagement Miscellaneous- 20,000 20,000 General Fund ReservePublic Engagement for new City Manager Police Dept.Professional Services- 20,000 20,000 General Fund Reserve Jail Medical Coverage Q1-Q4 Police Dept. Machinery & Equipment9,800 17,800 27,600 General Fund Reserve2025 Carry Forward, 1X furntiure Police Dept.Training/Memberships-Admin- 8,000 8,000 General Fund Reserve Prof. Svcs. Development Police Dept. Machinery & Equipment- 5,000 5,000 General Fund ReserveSpeed Trailer - donation Finanace Dept. HDL SmartGov ConversionProfessional Services- 3,000 3,000 General Fund Reserve HdL business license module - keep through conversation 363,800 Total General Fund Supplemental Appropriations 363,8009,800 373,600 Street Operating Fund - Supplemental Appropriations Engineering Services - TBD Engineering Svc- 70,000 70,000 TBD Fund Balance Increase for Engineering staff time to TBD funded projects Engineering Serv. Dev Review Engineering Svc47,000 15,000 62,000 Streets Fund Balance Increase for Engineering staff time -Development Review 85,000 Total Street Operating Fund Supplemental Appropriations 47,000 85,000 132,000 TBD Transfer in for"Engineering Services- TBD" 70,000 TBD Fund Balance REVENUE Operating Transfer In- 70,000 Transportation Benefit District Fund (TBD) - Supplemental Appropriations TBD Transfer to Streets Operating Transfer Out- 70,000 70,000 TBD Fund Balance TBD Transfer to Streets for Engineering svc 70,000 Total Transportation Benefit District Fund Supplemental Appropriations - 70,000 70,000 Community Service Funds - Supplemental Appropriations Facilities Dept. Facilities ER&R Model -FCS Professional Services- 15,000 15,000 Carryforward from 2025 Facilities Dept. Increase for Facilities ER&R Model -FCS Professional Services- 15,000 15,000 Increase due to model complexity Community Serv Roof L&I Penalty 6,000 Judgements & Settlements- 6,000 36,000 Total Community Service Funds Supplemental Appropriations- 36,000 36,000 Stormwater Fund - Supplemental Appropriations Engineering Serv. Dev Review Dev Review & Eng Svc30,550 9,750 40,300 Increase for Engineering staff time -Development Review 9,750 Total Stormwater Fund Supplemental Appropriations30,550 9,750 40,300 Olympic Gravity Water System Fund - Supplemental Appropriations Increase for Engineering Serv. -OGWS Operations Engineering Svc- 40,000 40,000 OGW S Fund Balance Increase in budget for Eng Staff time to OGWS Operations 40,000 Total Olympic Gravity Water System Supplemental Appropriations- 40,000 40,000 Water Distributions Fund - Supplemental Appropriations Engineering Serv. Dev Review Dev Review & Eng Svc86,950 27,750 114,700 Water Fund Balance Increase for Engineering staff time -Development Review Water Rights Research Professional Services- 20,000 20,000 Water Fund Balance Legal analysis of water rights for agriculture 47,750 Total Water Distributions Fund Supplemental Appropriations86,950 47,750 134,700 Wastewater Collection Fund - Supplemental Appropriations Engineering Serv. Dev Review Dev Review & Eng Svc70,500 22,500 93,000 Sewer Fund Balance Increase for Engineering staff time -Development Review 22,500 Total Wastewater Collection Fund Supplemental Appropriations70,500 22,500 93,000 Sewer Capital Capital Fund - Supplemental Appropriations Return of the temp interfund loan for 2025 EOY Balance Interfund loan principal pay- 200,611 200,611 Grant Reimbrusements Not included in the adopted budget 200,611 Total Water Sewer Capital Fund Supplemental Appropriations- 200,611 200,611 It Replacement Fund - Supplemental Appropriations Increase in replaced computers cost Computers30,000 12,000 42,000 Increase in cost from higher RAM prices 12,000 Total IT Replacement Fund Supplemental Appropriations30,000 12,000 42,000 City of Port Townsend 2026 Supplemental #2 Detail 2026 Supplemental #2 Summary Description Amount Regular Supplemental Items (Including Transfers & Internal Loans) $854,611 Carryforwards $32,800 Total Expenditure Increase (Including Transfers & Loans) $887,411 Less: Internal Transfers and Charges Between City Funds $455,611Money moving between funds but not leaving the City Actual New Spending Excludes internal reimbursements, cost allocations, all interfund transfers & interfund loan repayments. Also includes carryforwards $431,800 Agenda BillAB26-11 Meeting Date: September 21, 2026 Agenda Item: X.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Date Submitted:September 18, 2026 Interim City Manager Steve King PCD Director Emma Bolin Department: Planning & Community Development Contact Phone:(360)-379-4423 SUBJECT:Joint Stay Request of the Growth Management Hearings Boardand Common Ground CATEGORY:BUDGET IMPACT: ConsentResolutionExpenditure Amount: $0 Staff ReportOrdinanceIncluded in Budget? Yes No Contract ApprovalOther: Discussion Item Public Hearing (Legislative, unless otherwisenoted) Cost Allocation Fund:010-021 GF - Planning SUMMARY STATEMENT: Background: This agenda item follows up on the September 8, 2025 Council meeting in which draft work plan concepts were presented and the City Council authorized the City Manager to meet with Affordable Hometown Port Townsend (appellant) to find common ground. For more information, th please refer to the September 8meeting in the City Council archives located on the website at https://cityofpt.us/citycouncil/page/agendasminutesvideos. Additional information and all documents are available on the City’s website at: https://cityofpt.us/administration/page/2025-comprehensive-plan Port Townsend Municipal Code Page2/3 During the City Council on September 8, 2026, City Council voted to authorize Interim City Manager to meet with AHPT to find common ground that would support a joint stay request from the Growth Management Hearings Board (GMHB). Council provided detailed clarity that there was to be no negotiations in order to preserve public process that allows for the entire community and diverse perspectives to be involved. The interim City Manager met with a representative of the appellant in a public place on Thursday September 10 shortly after 1:00 near the Community Center near the street painting event. During the meeting, the appellant’s legal counsel also filed a response to the Growth Management Hearings Board outlining their conditions to enter a joint stay (See attached). th Later that day on September 10, the City’s legal counsel filed with the Growth Management Hearings Board, a request an extension to delay ruling until September 30, 2026 on the stay request to provide time to see if common ground can be found (See attached). The appellant submits that the City’s request for a stay should be denied at thjs time, unless certain conditions are met as follows. City Council will hold an executive session to better understand the legal ramifications of the conditions. Any action will be made in public session following the executive session. In terms of common ground, the city is pleased to report that the following topics were discussed and are likely common ground. GMA compliance is important for permits and grants. Public Engagement is an important element of the work ahead. There is a housing crisis. Affordable housing is a primary interest and is the driving factor More density is part of a solution. There may be disagreement on how that is done. The local legislative process is important, and this process should not leverage outcomes. In other words, there is no back room dealing. A work plan is necessary. While we might disagree on the scope, it is understood that a work plan is necessary. A lot of work lies ahead and it is the best interest of everyone to get going. It will take time. Staff recommends moving forward with the two track process using these principles and underpinnings for the work ahead in response to the appellant. ATTACHMENTS: None CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: The Port Townsend Municipal Code is current through Ordinance 3328, passed January 2, 2024. Port Townsend Municipal Code Page3/3 To be determined following Executive Session. All actions shall be made in public session. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: The Port Townsend Municipal Code is current through Ordinance 3328, passed January 2, 2024. Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! Ufmfhjo!Mbx!! 327!7!T USFFU! C SFNFSUPO-!XB!:9448! )317*!564.3995! 1 2 3 4 5 BEFORE THE GROWTH MANAGEMENT HEARINGS BOARD 6 WESTERN WASHINGTON REGION 7 STATE OF WASHINGTON 8 9 TODD MCGUIRE, an individual: MARY No. 26-2-0017 10 MCCURDY, an individual; JOHN CAPPS, an individual;JOHN WATTS an individual; 11 JOINT MOTION TO DEFER and AFFORDABLE HOMETOWN PORT RULING ON CITY’S MOTION FOR 12 TOWNSEND, a non-profit organization. STAY 13 Petitioners, v. 14 CITY OF PORT TOWNSEND 15 Respondent. 16 17 Following the City of Port Townsend’s filing of its pending Motion for Stay of Final 18 Decision and Order (herein, “Stay Motion”), the Parties have begun discussions concerning 19 conditions for a joint request for a stay. Those discussions require more time toconclude.The 20 Parties would also like to conclude those discussions before the Growth Management Hearings 21 Board (“GMHB”) rules on the City’s pending Stay Motion. 22 Therefore, the Parties jointly request that the GMHB: 23 (1) delay its ruling on the City’s Stay Motion until September 30, 2026; and 24 (2) if the Parties fail to file a proposed joint stay or other status report on or before 25 September 30, 2026, proceed with ruling on the City’s motion. 26 JOINT MOTION TO DEFER RULING ON CITY’s MOTION FOR STAY 1 th Respectfully submitted this 11 day of September, 2026. 1 2 /s/Austin M. Watkins /s/ Bryan Telegin 3 Austin M. Watkins, WSBA #53646 Bryan Telegin, WSBA #46686 4 Attorney for Respondent Abigail McCeney, WSBA #63974 City Attorney Attorney for Petitioners 5 City of Port Townsend Telegin Law PLLC th 250 Madison Street 216 6 Street 6 Port Townsend, WA 98368 Bremerton, WA 98332 7 awatkins@cityofpt.us bryan@teleginlaw.com (360) 390-4105 abigail@telegnlaw.com 8 (206) 453-2884 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 JOINT MOTION TO DEFER RULING ON CITY’s MOTION FOR STAY 2 Agenda Bill: AB26-112 Meeting Date: September 21, 2026 Agenda Item: X.B Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Emma Bolin Date Submitted: September 16, 2026 Department: PCD Contact Phone: (360)390-4048 SUBJECT: Ordinance 3371 Vacating a Portion of the McClellan Street Right-of-Way thth Located Between 9 Street and 10 Street Associated with Vince’s Village, City File No. LUP26-013; Reserving a Perpetual Sanitary Sewer Easement; Accepting Affordable Housing as Value Received; Requiring Recordation of an Affordable Housing Covenant and Lot Line Adjustment; Providing for Accrual and Vesting of Title; Authorizing Recordation; and Establishing an Effective Date 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: Bayside Housing & Services submitted an application for partial vacation of the plat and vacation of a portion of the unopened right-of-way located between 9th Street and 10th Street, designated as City File No. LUP26-013. The proposal is associated with Vince's Village, a proposed permanent supportive housing development located at 1777 10th Street within Blocks 198 and 199 of the Eisenbeis Addition. The proposal includes vacation of approximately 9,943 square feet of unopened McClellan Street right-of-way located between 9th Street and 10th Street. The right-of- way has never been opened or improved for transportation purposes and is not identified in the City's Comprehensive Plan, Transportation Element, Capital Facilities Plan, or Sustainable Streets Plan as necessary for present or future transportation needs. See Ordinance NO 3371 (Attachment A), Hearing Examiner Findings, Conclusions, and Decision - LUP26-013 (Attachment B), and Staff Report - LUP26-013 (Attachment C). On June 3, 2026, Phil Olbrechts, Hearing Examiner, conducted an open-record public hearing and issued Findings of Fact, Conclusions of Law, and a Final Decision approving the associated partial plat vacation and recommending approval of the street vacation subject to conditions (Attachment B). The Hearing Examiner found that the proposed vacation serves the public use and interest, will not create landlocked parcels, will not adversely affect vehicular, pedestrian, bicycle, utility, or emergency access, and is consistent with Chapter 35.79 RCW, Chapter 12.20 PTMC, and adopted City plans. Following the Hearing Examiner's decision, the applicant completed the survey, title, appraisal, easement, legal description, and recording documents necessary to implement the vacation. The City has reviewed and approved the final legal descriptions and exhibits contained in Attachment D (Street Vacation Legal Description and Survey Exhibit), Attachment E (Sewer Easement Legal Description and Sewer Easement Exhibit), Attachment F (Assignment and Disclaimer of Interest in Vacated Right-of-Way), Attachment G (Affordable Housing Covenant), and Attachment H (Appraisal Summary and Value Determination). Staff has verified that all prerequisites necessary for City Council consideration of the vacation have been satisfied. Staff recommends that the City Council waive Council rules and adopt the proposed ordinance on first reading. This vacation has been the subject of a June open public hearing and waiving the second reading will speed up the approval process, supporting the affordable housing project. The proposed ordinance (Attachment A): • Adopts the Hearing Examiner's Findings of Fact, Conclusions of Law, and Final Decision (Attachment B). • Vacates approximately 9,943 square feet of unopened McClellan Street right-of- way as depicted in Attachment D. • Reserves a perpetual twenty-foot-wide sanitary sewer easement containing approximately 2,706 square feet for continued operation and maintenance of municipal sewer infrastructure as described in Attachment E. • Accepts affordable housing and permanent supportive housing as value received under PTMC 12.20.090 and RCW 35.79.030, supported by the covenant contained in Attachment G and the appraisal contained in Attachment H. • Requires recordation of an Affordable Housing Covenant restricting the project to low-income housing for a minimum of forty (40) years (Attachment G). • Requires approval and recordation of a Lot Line Adjustment incorporating the vacated right-of-way into the receiving parcel, consistent with Attachment D. • Provides that the street vacation becomes effective upon recordation of the ordinance with the Jefferson County Auditor and that title vests pursuant to RCW 35.79.040. See Attachment A. • Prohibits issuance of any building permit, civil permit, land use approval, certificate of occupancy, or other development approval relying upon the vacated right-of- way until both the Affordable Housing Covenant (Attachment G) and Lot Line Adjustment havebeen recorded. An appraisal prepared by SH&H Valuation and Consulting established a fair market value of $60,000 for the vacation area, subject to retention of public easement rights (Attachment H). The City Council is asked to determine that the public benefits associated with the affordability covenant and permanent supportive housing project constitute sufficient value received under RCW 35.79.030 and PTMC 12.20.090. Proposed City Council Findings: A. The subject portion of McClellan Street is not required for present or future public transportation purposes. See Attachments B and C. B. Vacation of the requested right-of-way will not create landlocked parcels or adversely affect vehicular, pedestrian, bicycle, utility, or emergency access. See Attachments B and C. C. The proposed vacation is consistent with Chapter 35.79 RCW, Chapter 12.20 PTMC, the Port Townsend Comprehensive Plan, and the public use and interest. See Attachments B and C. D. Existing municipal sewer infrastructure within the vacation area requires reservation of a perpetual sanitary sewer easement as shown in Attachment E. E. The Affordable Housing Covenant contained in Attachment G constitutes a material component of the compensation and public benefit supporting approval of the vacation. F. The value received by the City satisfies the requirements of RCW 35.79.030 and PTMC 12.20.090, as supported by the appraisal in Attachment H and the affordability restrictions in Attachment G. Compliance With Conditions and Prerequisites: Staff has verified satisfaction of all requirements necessary for Council consideration of the street vacation, including: Approval of final survey documents and legal descriptions (Attachment D). Completion of title review and vacation legal descriptions (Attachment D). Preparation of sanitary sewer easement documents (Attachment E). Completion of the appraisal establishing the value of the proposed vacation area (Attachment H). Preparation of the Assignment and Disclaimer of Interest in Vacated Right-of-Way (Attachment F). Preparation of recordable ordinance exhibits and associated recording documents (Attachments A through H). The Affordable Housing Covenant (Attachment G) and Lot Line Adjustment (Attachment D) remain required conditions of the ordinance and must be recorded before issuance of any building permit, certificate of occupancy, civil permit, land use approval, or other development approval relying upon the vacated right-of-way. Upon adoption and recording of Ordinance No. 26-3371, the designated portions of the McClellan Street right-of-way shall be vacated and title shall vest in the abutting property owners in accordance with Chapter 35.79 RCW, subject to the easements reserved in the ordinance. ATTACHMENTS: Attachment A –Ordinance No.3371 Attachment B – Hearing Examiner Findings, Conclusions, and Decision (LUP26-013) Attachment C –Staff Report (LUP26-013) Attachment D –Street Vacation Legal Description and Survey Attachment Attachment E – Sewer Easement Legal Description and Sewer Easement Attachment Attachment F – Assignment and Disclaimer of Interest in Vacated Right-of-Way Attachment G – Affordable Housing Covenant Attachment H – Appraisal Summary and Value Determination ($60,000) CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to waive Council Rules and approve Ordinance 3371 th Vacating a Portion of the McClellan Street Right-of-Way Located Between 9 Street and th 10 Street Associated with Vince’s Village, City File No. LUP26-013; Reserving a Perpetual Sanitary Sewer Easement; Accepting Affordable Housing as Value Received; Requiring Recordation of an Affordable Housing Covenant and Lot Line Adjustment; Providing for Accrual and Vesting of Title; Authorizing Recordation; and Establishing an Effective Date ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Other: Ordinance 3371 Page 1 of 7 Ordinance No. 3371 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, VACATING A PORTION OF THE MCCLELLAN STREET RIGHT-OF-WAY LOCATED BETWEEN 9TH STREET AND 10TH STREET ASSOCIATED WITH VINCE'S VILLAGE, CITY FILE NO. LUP26-013; RESERVING A PERPETUAL SANITARY SEWER EASEMENT; ACCEPTING AFFORDABLE HOUSING AS VALUE RECEIVED; REQUIRING RECORDATION OF AN AFFORDABLE HOUSING COVENANT AND LOT LINE ADJUSTMENT; PROVIDING FOR ACCRUAL AND VESTING OF TITLE; AUTHORIZING RECORDATION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Bayside Housing & Services submitted an application for partial vacation of the Eisenbeis Addition plat and vacation of a portion of the undeveloped McClellan Street right- of-way located between 9th Street and 10th Street, designated as City File No. LUP26-013; and WHEREAS, the street vacation is associated with Vince's Village, a proposed permanent supportive housing development located at 1777 10th Street within Blocks 198 and 199 of the Eisenbeis Addition;and WHEREAS, the subject portion of McClellan Street has never been opened, improved, graded, paved, or utilized as a vehicular, pedestrian, bicycle, emergency access, or transportation facility; and WHEREAS, the City's Comprehensive Plan, Transportation Element, Capital Facilities Plan, and Sustainable Streets Plan do not identify the subject right-of-way as necessary for present or future transportation purposes; and WHEREAS, on June 3, 2026, Phil Olbrechts, Hearing Examiner, conducted an open- record hearing and subsequently issued Findings of Fact, Conclusions of Law, and Final Decision approving the associated partial plat vacation and recommending approval of the street vacation subject to conditions; and WHEREAS, the Hearing Examiner found that the proposed vacation serves the public use and interest, will not adversely affect access, utilities, transportation functions, or emergency response capabilities, and is consistent with Chapter 35.79 RCW, Chapter 12.20 PTMC, and adopted City plans; and WHEREAS, the portion of right-of-way proposed for vacation is legally described as follows: All of McClellan Street lying between Lots 5 and 6 in Block 198 and Lots 3 and 4 in Block 199 of the Supplemental Plat of Eisenbeis Addition to the City of Port Townsend, as recorded in Volume 2 of Plats, Page 24, records of Jefferson County, Washington; Ordinance 3371 Page 2 of 7 Together with the west half of McClellan Street lying adjacent to and abutting Lots 1 and 2 in Block 199 of said Supplemental Plat; Containing approximately 9,943 square feet, more or less; and WHEREAS, the City has received an appraisal prepared by SH&H Valuation and Consulting dated August 24, 2026, establishing a market value of Sixty Thousand Dollars ($60,000) for the proposed vacation area, subject to retention of public utility easement rights;and WHEREAS, the City has determined pursuant to PTMC 12.20.090 that affordable housing and permanent supportive housing may constitute value received and compensation for a street vacation; and WHEREAS, an existing public sanitary sewer main is located within the vacation area and the public interest requires reservation of a perpetual sewer easement for operation, maintenance, repair, replacement, access, and future utility purposes; and, WHEREAS, the City Council finds that the affordable housing covenant required by this Ordinance constitutes a material component of the compensation and public benefit supporting the vacation of the right-of-way; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings. The foregoing recitals are hereby adopted as findings of the City Council. The City Council further adopts the Findings of Fact, Conclusions of Law, and Final Decision issued by the Hearing Examiner in City File No. LUP26-013 as though fully set forth herein. The City Council further finds: A. The subject right-of-way is not required for present or future public transportation purposes. B. Vacation of the subject right-of-way will not create landlocked parcels or adversely affect vehicular, pedestrian, bicycle, utility, or emergency access. C. The proposed vacation is consistent with Chapter 35.79 RCW, Chapter 12.20 PTMC, the Port Townsend Comprehensive Plan, and the public use and interest. D. Existing municipal sanitary sewer infrastructure occupies a portion of the vacation area and requires reservation of a perpetual sewer easement. E. The vacation area contains approximately 9,943 square feet. Ordinance 3371 Page 3 of 7 F. The permanent supportive housing project known as Vince's Village advances adopted housing goals and policies of the City of Port Townsend. G. As consideration for the street vacation, Bayside Housing & Services shall record an Affordable Housing Covenant restricting the Property for low-income housing purposes for a minimum period of forty (40) years. The City Council finds that the covenant constitutes a material component of the compensation and public benefit supporting approval of the vacation. Section 2. Vacation Approved. Subject to the provisions of this Ordinance, the City Council hereby vacates the following portion of the McClellan Street right-of-way: All of McClellan Street lying between Lots 5 and 6 in Block 198 and Lots 3 and 4 in Block 199 of the Supplemental Plat of Eisenbeis Addition to the City of Port Townsend, as recorded in Volume 2 of Plats, Page 24, records of Jefferson County, Washington; Together with the west half of McClellan Street lying adjacent to and abutting Lots 1 and 2 in Block 199 of said Supplemental Plat; Containing approximately 9,943 square feet, more or less. Section 3. Reservation of Perpetual Sanitary Sewer Easement. Pursuant to RCW 35.79.030 and PTMC 12.20.060, the City reserves a perpetual public sanitary sewer easement over a portion of the vacated right-of-way. The easement shall consist of a twenty-foot (20-ft) wide sanitary sewer easement, and shall contain approximately 2,706 square feet, more or less. Within the easement area, the City, its officers, employees, agents, contractors, successors, assigns, and authorized utility providers shall have the perpetual right to: A. Construct, install, inspect, operate, maintain, repair, replace, relocate, reconstruct, and upgrade sewer facilities and appurtenances; B. Enter upon the easement area with personnel, vehicles, equipment, and materials reasonably necessary to exercise such rights; C. Remove vegetation, structures, improvements, fill, grading, or other obstructions interfering with utility operations; and, D. Exercise all rights reasonably necessary for operation and maintenance of the public sewer system. Ordinance 3371 Page 4 of 7 No structure, utility, grading, fill, excavation, landscaping, or improvement may interfere with the City's easement rights without prior written authorization from the City. Section 4. Compensation and Value Received. Pursuant to RCW 35.79.030 and PTMC 12.20.090, the City Council has reviewed the appraisal prepared by SH&H Valuation and Consulting and finds that the market value of the vacation area is Sixty Thousand Dollars ($60,000). The City Council further finds that: A. The retained sewer easement preserves substantial public utility value; and B. The affordability restrictions required by this Ordinance will provide substantial and long-term public benefit through permanent supportive housing and low-income housing opportunities. The City Council therefore determines that the value received by the City satisfies the requirements of RCW 35.79.030 and PTMC 12.20.090. Section 5. Affordable Housing Covenant Required. As consideration for the street vacation approved herein, Bayside Housing & Services shall execute and record anAffordable Housing Covenant approved by the City Attorney. The covenant shall: A. Restrict the residential units developed upon the Property to low-income housing; B. Require occupancy by households earning no more than fifty percent (50%) of Area Median Income; C. Remain in effect for a minimum period of forty (40) years following issuance of a certificate of occupancy; D. Grant enforcement rights to the City; and E. Run with the land and bind all successors and assigns. No building permit, land use approval, civil permit, certificate of occupancy, or other development approval that relies upon the vacated right-of-way shall be issued until the covenant has been recorded with the Jefferson County Auditor. Section 6. Lot Line Adjustment Required. The applicant shall obtain approval and record a final Lot Line Adjustment incorporating the vacated right-of-way into the receiving parcel in a form approved by the City. Ordinance 3371 Page 5 of 7 The Lot Line Adjustment shall: A. Incorporate the vacated McClellan Street right-of-way into the receiving parcel; B. Be consistent with the approved legal descriptions and survey exhibits; C. Depict the sewer easement reserved by this Ordinance; and, D. Be recorded with the Jefferson County Auditor. No building permit, land use approval, civil permit, certificate of occupancy, or other development approval that relies upon the vacated right-of-way shall be issued until the approved Lot Line Adjustment has been recorded. Section 7. Conditions of Approval. The vacation approved herein remains subject to: A. Resolution No. 26-013; B. The Hearing Examiner Findings of Fact, Conclusions of Law, and Final Decision for City File No. LUP26-013; C. Recording of the Affordable Housing Covenant required by Section 5; D. Approval and recording of the Lot Line Adjustment required by Section 6; E. Recordation of the sewer easement documents; F. Recordation of an Assignment and Disclaimer of Interest in Vacated Right-of-Way; and, G. All other applicable City approvals and requirements. The conditions contained in this Ordinance shall run with the land and bind the applicant and all future owners, successors, and assigns. Section 8. Accrual and Vesting of Title. Upon recordation of this Ordinance with the Jefferson County Auditor, the street vacation approved herein shall become effective. Title to the vacated right-of-way shall vest pursuant to RCW 35.79.040, subject to: A. The sewer easement reserved by Section 3 of this Ordinance; Ordinance 3371 Page 6 of 7 B. The recorded Assignment and Disclaimer of Interest in Vacated Right-of-Way; C. The Affordable Housing Covenant required by Section 5; and, D. All conditions, reservations, easements, and restrictions contained herein. Section 9. Authorization and Recordation. The Planning and Community Development Director and/or their respective designees are authorized to execute, approve, record, and deliver all documents necessary to implement this Ordinance and effectuate the vacation approved herein. Prior to recordation of this Ordinance, City staff shall verify: A. Approval of final legal descriptions and survey exhibits; B. Approval of sewer easement documents; C. Satisfaction of all Hearing Examiner and City Council conditions necessary for street vacation approval; D. Satisfaction of all Auditor, Treasurer, and Assessor requirements; and, E. Completion of all exhibits attached to this Ordinance in recordable form. Following recordation of this Ordinance, the City may withhold any development approval relying upon the vacated right-of-way until Sections 5 and 6 have been fully satisfied. Section 10. Severability. If any section, subsection, sentence, clause, phrase, condition, or provision of this Ordinance is held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Ordinance, which shall continue in full force and effect. Section 11. Effective Date. This Ordinance shall take effect five (5) days after publication of a summary thereof as required by law. The street vacation approved herein shall become effective upon recordation of this Ordinance with the Jefferson County Auditor. Notwithstanding the effectiveness of the vacation and vesting of title under Section 8, no building permit, civil permit, land use approval, certificate of occupancy, or other development approval that relies upon the vacated right-of-way shall be issued until: Ordinance 3371 Page 7 of 7 A. The Affordable Housing Covenant required by Section 5 has been recorded; and B. The Lot Line Adjustment required by Section 6 has been approved and recorded. ADOTPED by the City Council of the City of Port Townsend, Washington, at a regular business meeting thereof, held this _____ day of ______, 2026. ____________________________________ Amy Howard Mayor Attest: ____________________________________ Alyssa Rodrigues City Clerk 1 BEFORE THE HEARING EXAMINER FOR THE CITY OF PORT TOWNSEND 2 Phil Olbrechts, Hearing Examiner 3 RE: 4 Partial Plat Vacation and McClellan FINDINGS OF FACT, CONCLUSIONS 5 Street Right-of-Way Vacation OF LAW AND FINAL DECISION 6 File No. LUP26-013 7 8 I. INTRODUCTION 9 Bayside Housing & Services submitted an application for a partial plat vacation of 10 property located at 1777 10th Street together with the vacation of an undeveloped portion of the McClellan Street right-of-way located between 9th Street and 10th 11 Street to consolidate several platted lots to facilitate development of a multi-family housing development. The application is approved subject to conditions. 12 II. ORAL TESTIMONY 13 14 A computer-generated transcript of the hearing has been prepared to provide an overview of the hearing testimony. The transcript is not intended to provide a 15 precisely accurate rendition of testimony but generally identifies the subjects addressed during the hearing. The transcript is provided for informational purposes 16 only as Appendix A. 17 18 III. EXHIBITS 19 Exhibits 1- 12 listed on page 13 of the staff report dated May 26, 2026, were admitted rd into the record at the June 3, 2026, virtual public hearing. Additionally, Exhibit 6.7, 20 a comment letter from Mr. Tilly which was received by staff after the staff report and exhibits had been distributed was entered into the record by staff. 21 22 IV. FINDINGS OF FACT 23 Procedural: 24 1. Applicants. Bayside Housing & Services c/o Bill Rucker, Director of 25 Sites & Projects 310 Hadlock Bay Rd. p. 1 Findings, Conclusions and Decision 2. Hearing. A virtual hearing was held on the applications at 9:00 am on rd 1 June 3, 2026. 2 Substantive: 3 3. Project Description. Bayside Housing & Services submitted an 4 application for a partial plat vacation of property located at 1777 10th Street together with the vacation of an undeveloped portion of the McClellan Street right-of-way 5 located between 9th Street and 10th Street to consolidate several platted lots to facilitate development of a three-story, 32-unit multifamily residential development 6 for permanent supportive housing. 7 The proposal includes full-width vacation of the McClellan Street right-of-way along 8 199. The application further proposes a partial (half-width) vacation along the 9 western portion of the right-of-way where adjacent parcels are not under applicant ownership. The distinction between full-width and partial-width street vacation is 10 intended to ensure that adjacent properties not controlled by the applicant retain the ability to utilize the remaining portion of the right-of-way if needed for future access, 11 utilities, or connectivity. 12 The subject property consists of multiple narrow lots created by historic platting 13 within the Eisenbeis Addition (Exhibit 10), a subdivision platted in the late nineteenth century (1888). Several interior lot lines and dedicated rights-of-way, including 14 McClellan Street, were platted but never fully developed. The segment of McClellan 15 Streets Plan or Active Transportation Plan. 16 4. Surrounding Uses: Surrounding development reflects a mix of single- 17 family residential, multifamily residential, and institutional uses typical of the Castle Hill area. Vehicular, pedestrian, bicycle, and emergency access to the site is provided 18 via improved public streets at 9th Street and 10th Street. 19 5. Adverse Impacts. No significant adverse impacts are associated with the proposal. The subject property has no mapped Critical Areas as regulated by the Port 20 Townsend Municipal Code (PTMC) and none have been observed. The proposal 21 retains portions of the McClellan Street right of way as necessary to ensure that no lots will become landlocked. The partial plat vacation does not impair access, 22 eliminate utilities, or remove public facilities. City staff have determined that retention of the proposed vacated right of way would not advance transportation 23 objectives or system functionality. Reservation of perpetual public utility easements within the vacated right-of-way is feasible and sufficient to preserve current and 24 future public service needs. City staff have determined that the proposed areas for 25 right of way vacation not are not required for present or future public use Written comments were received expressing concern about the future multi-family development of the project site. Concerns included traffic and parking, neighborhood p. 2 Findings, Conclusions and Decision character and future use of McClellan Street. Most of these comments are not 1 pertinent to this review because the planned multi-family development is subject to separate permits. This permit review is limited to the impacts of removing lot lines 2 and right of way. Approval of this permit does not commit the Applicant to build any specific type of development. The only public comments pertinent to this review are 3 the future use of McCelland. City staff have found that the right of way to be eliminated will not result in any landlocked parcels or undermine the Citys 4 transportation planning efforts. Consequently, the future 5 IV. CONCLUSIONS OF LAW 6 Procedural: 7 1. Authority of Hearing Examiner. PTMC 20.01.040, Table 1, designates plat 8 vacations as subject to a Type III process. PTMC 20.01.040, Table 2, provides that 9 the hearing examiner shall hold hearings and issue final decisions on Type III applications. 10 2. The PTMC doesnt provide any directly referenced criteria for approval of plat 11 vacations. Rather, PTMC 18.04.040D requires that plat vacations shall comply with the criteria imposed by RCW 58.17.212. As pertinent, RCW 58.17.212 is quoted 12 below and applied via corresponding conclusions of law. 13 RCW 58.17.212: The legislative authority of the city may approve or deny the application 14 for vacation of the subdivision after determining the public use and interest to be served by the vacation of the subdivision. 15 3. Criteria Met. The criteria is met. The public use and interest is served by the 16 vacation since it will not create any adverse impacts as determined in Finding of Fact No. 5 while at the same time facilitating the development of the property. 17 18 One comment letter asserted that the proposed right of way doesnt conform to right of way vacation statutes, specifically those in Chapter 35.79 RCW. Those statutes do 19 not apply to plat vacations that combine lot vacations along with right of way vacations. RCW 58.17.212 provides that \[w\]hen the application is for the vacation 20 of the plat together with the roads and/or streets, the procedure for vacation in this 21 section shall be used At hearing, staff assured that right of way vacations do not include any right of way abutting property owners who have not participated in this 22 vacation application. 23 V. DECISION 24 As conditioned below, the proposed partial vacation of the Eisenbeis Addition 25 subdivision plat affecting Blocks 198 and 199, together with the vacation of an undeveloped portion of the McClellan Street right-of-way located between 9th Street and 10th Street conforms to all required criteria for approval for the reasons detailed p. 3 Findings, Conclusions and Decision in the Conclusions of Law above. The conditions necessary to assure compliance and 1 required by this Decision are as follows: 2 1. No Authorization of Development. Approval of the partial plat vacation and the recommendation for vacation of the McClellan Street right-of-way are limited 3 solely to the legal actions requested and do not authorize construction, grading, 4 land disturbance, installation of utilities, or any physical development of the subject property. This approval does not approve site design, building placement, 5 height, massing, density, parking configuration, traffic impacts, utility capacity, stormwater management, environmental impacts, or neighborhood compatibility. 6 Authority: Chapter 19.27 RCW; PTMC 20.01.130. 7 2. No Approval by Implication. Nothing in this approval shall be construed as a 8 commitment by the City to approve any future development proposal on the subject property, nor as a prejudgment of issues reserved for subsequent permit 9 review. Authority: PTMC 20.01.130. 10 3. Recordation of Partial Plat Vacation. The partial plat vacation shall be recorded with the Jefferson County Auditor prior to issuance of any permit or approval that 11 relies upon the revised plat configuration, including but not limited to civil, 12 building, or land use permits. Authority: RCW 58.17.212; PTMC 20.01.140. 13 4. Prior to recording anything, the Applicant shall submit a survey exhibit prepared, stamped, and signed by a Washington State licensed land surveyor that clearly 14 depicts the portion of the recorded plat proposed for vacation. The survey shall: 15 a. Delineate the area proposed for vacation relative to the original recorded plat, 16 referencing the plat name, recording number, and lot/block layout. b. Show all adjacent lots and tracts, including current ownership as reflected in 17 the most recent title report. c. Identify and depict all existing easements, rights-of-way, streets, utilities, and 18 other encumbrances within or adjacent to the area proposed for vacation. d. Provide dimensions and boundaries for the right-of-way or street width 19 proposed for vacation. 20 e. Be consistent with the legal description contained in the vacation approval and suitable for recording with the Jefferson County Auditor. 21 f. The Applicant shall provide a mylar or other city-accepted reproduction of the Plat Vacation to PCD for review and approval (5 paper copies and one 22 electronic .pdf version) as part of the final Plat/Plat Alteration approval process. Said mylar shall contain the acknowledged signatures of all parties 23 having an ownership interest in the subject property as evidenced by an 24 A.L.T.A. plat certificate prepared by a local title company. Said plat certificate, or any update provided, shall be less than 30 days old. The 25 approved 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 Vacation mylar, the Applicant is p. 4 Findings, Conclusions and Decision responsible for all fees associated with recording. All property taxes due and 1 owing on the subject property must be paid in full prior to obtaining the signature of the Jefferson County Treasurer. 2 g. Final plat vacation documents and legal descriptions shall be prepared by a Washington-licensed land surveyor at the time of final recording. The City 3 shall coordinate document routing for required agency signatures, including 4 Assessor and Treasurer review. h. The survey exhibit shall be subject to review and approval by the City of Port 5 Townsend Planning and Community Development Director and Public Works Director (or their designees) for consistency with the approved vacation and 6 applicable municipal code provisions. i. Following approval, the City shall coordinate preparation and routing of final 7 documents for recording with the Jefferson County Auditor. The applicant 8 shall be responsible for associated fees, but document routing will occur through City processes to ensure all required signatures, including those of the 9 Assessor and Treasurer, are obtained. 10 5. City Council Legislative Action Required. The vacation of the undeveloped portion of McClellan Street right-of-way shall not take effect unless and until the 11 Port Townsend City Council adopts a street vacation ordinance in accordance 12 with Chapter 35. 79 RCW. Authority: RCW 35.79.010; PTMC 12.20.080. 13 6. Determination of Compensation. Any compensation for the vacated right-of-way shall be determined by the City Council in accordance with RCW 35.79.030, 14 unless expressly waived by City Council action. City Council may waive the requirement to obtain an appraisal provided that qualified city personnel provide a 15 written determination that the value of property received will be equal to or 16 greater than the value of the right-of- 17 Comprehensive Plan goals and policies. The provision of permanent supportive housing at the site constitutes adequate value received in exchange for the vacated 18 right-of- goals. Authority: RCW 35.79.030, Chapter. 12.20.090 PTMC. 19 20 7. Reservation of Public Utility Easements. The City shall reserve and record perpetual public utility easements within the vacated right-of-way as necessary to 21 preserve present or future water, sewer, stormwater, power, communications, or other public services. Authority: RCW 35.79.030; PTMC 12.20.060(D) and (E). 22 8. Pedestrian or Trail Easements. If the City determines that future non-motorized 23 connectivity is necessary to serve the public interest, a pedestrian or trail 24 easement shall be reserved within the vacated right-of-way, consistent with PTMC 12.20.060(F) and the Comprehensive Plan Transportation Element. 25 Authority: PTMC 12.20.060(F); Comprehensive Plan. p. 5 Findings, Conclusions and Decision 9.Recordation of Street Vacation Ordinance. The street vacation ordinance shall be 1 recorded with the Jefferson County Auditor prior to vesting of title to the vacated right-of-way in the abutting property owner(s). Authority: RCW 35.79.040; 2 PTMC 12.20.110. 3 10.Compliance with Utility and Infrastructure Standards. All future development 4shall comply with Title 13 PTMC and the City of Port Townsend Engineering Design Standards, including but not limited to requirements related to utility 5 service, stormwater management, frontage improvements, and infrastructure 6 infrastructure improvements or mitigation at subsequent permit stages. Authority: Title 13 PTMC; Engineering Design Standards. 7 8 11.Conditions Run with the Land. These conditions shall run with the land and shall be binding upon the Applicant and all successors in interest. Authority: PTMC 9 20.01.140. 10 12.Severability. If any condition of approval is found to be invalid or unenforceable, such invalidity shall not affect the validity or enforceability of the remaining 11 conditions. Authority: PTMC 20.01.330. 12 18th 13 Dated this day of 2026. 14 15 ______________________________ 16 Phil Olbrechts, City of Port Townsend Hearing Examiner 17 18 19 Appeal Right and Valuation Notices 20 This land use decision is final and subject to appeal to superior court as governed by Chapter 36.70C RCW. Appeal deadlines are short and procedures strictly construed. 21 Anyone wishing to file a judicial appeal of this decision should consult with an attorney to ensure that all procedural requirements are satisfied. 22 Affected property owners may request a change in valuation for property tax purposes 23 notwithstanding any program of revaluation. 24 25 p.6Findings, Conclusions and Decision STAFF REPORT - PHASE I FINDINGS OF FACT, CONCLUSIONS OF LAW, AND DECISION City File Number LUP26-013 EXHIBIT 1 Partial Plat Vacation and McClellan Street Right-of-Way Vacation On February 12, 2026, Bayside Housing & Services submitted an application for a Type III Land Use Permit (File No. LUP26-013) requesting a partial vacation of the Eisenbeis Addition subdivision plat affecting Blocks 198 and 199, together with the vacation of an undeveloped portion of the McClellan Street right-of-way located between 9th Street and 10th Street. The proposal includes full-width vacation of the McClellan Street right-of- within Blocks 198 and 199. The application further proposes a partial (half- width) vacation along the western portion of the right-of-way where adjacent parcels are not under applicant ownership. This approach maintains flexibility for access, utilities, and potential future circulation for those adjacent properties. The subject right-of-way has never been opened or improved and does not function as a transportation facility. While the corridor may accommodate utility infrastructure, any necessary public utility interests can be preserved through reservation of easements at the time of vacation. The proposed action is categorically exempt from SEPA pursuant to WAC 197-11-800(1)(d), and no critical areas are mapped or observed on the subject property. Bayside Housing & Services c/o Bill Rucker, Director of Sites & Projects 310 Hadlock Bay Rd. Port Hadlock, WA 9833 Phone: (360) 385-4637 Email: brucker@baysidehousing.org 1777 10th St. Port Townsend, WA 98368 Jefferson County Assessor Parcel Numbers: 948319901 and 948319802 Legal: Eisenbeis Addition Blk 199 Lots 1 to 8 Subj. To Easement. Together with Eisenbeis Addition Blk 198 Lots 5 & 6 Date Application Received: February 12, 2026 Date of Determination of Completeness: March 31, 2026 Date of Notice Publication: April 8, 2026 Date of Notice Mailing: April 8, 2026 Date of Notice Posted: April 8, 2026 Comment Period Ended: 4:00 PM on Wednesday, April 22, 2026. Notice of Public Hearing Issued, May 20, 2026 Date of Notice of Public Hearing Publication: May 20, 2026 Date of Notice of Public Hearing Mailing: May 20, 2026 Date of Notice of Public Hearing Posted on Subject Property: May 20, 2026 Date of Open Record Public Hearing: June 3, 2026 Chapter 58.17 RCW Subdivision and Platting Chapter 35.79 RCW Street Vacation Chapter 19.27 RCW Buildings and Construction (Vesting Doctrine) Chapter 43.21C RCW State Environmental Policy Act (SEPA) Chapter 197-11 WAC SEPA Rules 2025 Port Townsend Comprehensive Plan Titles 12, 13, 17, 18, 19, and 20 PTMC City of Port Townsend Engineering Design Standards (EDS) A. General Findings of Fact: 1. Zoning. The subject property is zoned R-IV (MF) High Density Multifamily Residential under Title 17 PTMC. This zoning district is intended to accommodate consolidated parcels and higher-density residential development in urban areas served by public infrastructure. 5. The Eisenbeis Addition plat established interior northsouth streets, including McClellan Street, that were intended at the time of platting to function as through streets connecting 9th and 10th Streets. However, subsequent development patterns in the surrounding neighborhood did not rely on these interior connections, and circulation was instead established along the perimeter street network. As a result, the interior segments of McClellan Street were never constructed and now exist as isolated, undeveloped segments that function more as residual stubs rather than necessary through streets. 6. Streets Plan, does not identify this segment of McClellan Street as part of the planned transportation network or as necessary to achieve system connectivity. 7. Parcels adjacent to the eastern portion of McClellan Street are under separate ownership and obtain access from 10th Street. The proposal retains the eastern half of the right-of-way in this location to ensure that no existing or potential future access opportunities are eliminated. 10. The subject property consists of multiple narrow lots created by historic platting within the Eisenbeis Addition (Exhibit 10), a subdivision platted in the late nineteenth century (1888). Several interior lot lines and dedicated rights-of-way, including McClellan Street, were platted but never fully developed. 11. Surrounding development reflects a mix of single-family residential, multifamily residential, and institutional uses typical of the Castle Hill area. Vehicular, pedestrian, bicycle, and emergency access to the site is provided via improved public streets at 9th Street and 10th Street. 12. The segment of McClellan Street proposed for vacation is unimproved and not part of the Sustainable Streets Plan or Active Transportation Plan. 13. Partial Plat Vacation RCW 58.17.212 and Title 18 PTMC. RCW 58.17.212 authorizes vacation of a recorded plat upon a finding that the vacation serves the public use and interest. The Eisenbeis Addition reflects nineteenth-century subdivision practices that predate modern zoning, infrastructure, and planning standards. Interior lot lines within Blocks 198 and 199 are obsolete constrain coordinated development otherwise anticipated by the R-IV zoning designation. 14. The partial plat vacation does not impair access, eliminate utilities, or remove public facilities. All parcels retain access via 9th Street or 10th Street. The vacation aligns parcel configuration with adopted zoning and land use policy and satisfies RCW 58.17.212, subject to conditions. 15. Street Vacation Chapter 35.79 RCW. Chapter 35.79 RCW authorizes municipalities to vacate streets no longer required for public use. The subject portion of McClellan Street has never been opened or improved and does not function as a transportation corridor or access route but is used as a utility corridor. It is not identified as necessary in adopted transportation or capital facilities plans. Public interests can be preserved through easements, consistent with RCW 35.79.030. 16. Title 12 PTMC Streets, Sidewalks, and Transportation. The proposal satisfies all criteria of PTMC 12.20.060(A)(J). The undeveloped right-of-way does not serve a demonstrated public need, access and emergency response remain adequate, utilities can be preserved by easement, and the vacation is consistent with adopted plans. The other right of way value sets of open space and trees are not impacted as the area is currently not accessible to the public and no significant trees exist as defined in Title 12 PTMC. The are will also be maintained as a sewer easement with access for maintenance of the existing sewer main. 17. Title 17 PTMC and Title 18 PTMC Zoning and Land Division. The R-IV zoning district anticipates consolidated parcels and higher-density residential development. The proposed vacations do not alter zoning, permitted uses, or development standards and are consistent with Titles 17 and 18 PTMC. 18. Title 13 PTMC and Engineering Design Standards. The vacation request does not authorize infrastructure installation or modification of public infrastructure. Compliance with Title 13 PTMC and the Engineering Design Standards will be required at subsequent permit stages. Comprehensive Plan Consistency. a. The subject segment of McClellan Street is not identified as part of the planned transportation network and is not required to implement the Sustainable Streets Plan. Its retention as dedicated right-of-way would not advance transportation objectives or system functionality. b. The proposed vacation is therefore consistent with Comprehensive Plan policies that support infill development, efficient use of land, and the removal or repurposing of excess right-of-way where no public need exists. 20. Right-of-Way Status McClellan Street (Chapter 35.79 RCW; Title 12 PTMC. The portion of McClellan Street right-of-way proposed for vacation lies between 9th Street and 10th Street within the Eisenbeis Addition. a. This portion of McClellan Street has never been graded, paved, or otherwise improved by the City. b. The undeveloped right-of-way has never functioned as: i. a vehicular travel lane, ii. a pedestrian sidewalk, iii. a bicycle facility, or iv. public accessible open space v. stormwater facility vi. a location with significant trees vii. an emergency access route. c. The subject right-of-way transportation network in the Comprehensive Plan Transportation Element or Capital Facilities Plan. 21. Zoning and Access Conditions (Title 17 PTMC; Title 12 PTMC). a. The subject property is zoned R-IV (MF) High Density Multifamily Residential under Title 17 PTMC. b. The R-IV zoning district anticipates consolidated parcels, coordinated site design, and higher-density residential development in urban areas served by infrastructure. c. Vehicular, pedestrian, bicycle, and emergency access to the subject property is currently provided via improved public rights-of-way at 9th Street and 10th Street. d. The proposed partial plat vacation and street vacation do not eliminate, reduce, or adversely affect lawful access to the subject property. e. Adequate access for emergency services will remain available following the requested vacations. 21. Utilities and Public Services (Title 13 PTMC; Engineering Design Standards; RCW 35.79.030). a. Public water, sewer, stormwater, and other utilities are available to the subject property within the surrounding street network. b. Existing public utilities are located within the undeveloped portion of McClellan Street proposed for vacation. c. Reservation of perpetual public utility easements within the vacated right-of-way is feasible and sufficient to preserve current and future public service needs. d. The requested vacations do not approve or authorize installation, relocation, or modification of utilities. e. Compliance with Title 13 PTMC and the City of Port Townsend Engineering Design Standards will be required at the time of future civil or building permits. 22. Public Comment (Title 20 PTMC). a. During the public comment period, written comments (Exhibits 6.1 to 6.6) were submitted by members of the public raising concerns related to: i. traffic and parking conditions; ii. neighborhood character and compatibility; iii. building height and massing; iv. future use of McClellan Street; and v. conceptual development plans. b. These comments received during the open public comment period relate to potential future development scenarios rather than to the legal criteria governing plat and street vacations. c. No public comment provided evidence demonstrating that the requested plat vacation would create landlocked lots, eliminate existing public access, impair utilities, or remove an actively used transportation facility. d. All public comments were reviewed and considered as part of the administrative record. e. The applicant responded to the public comments received during the comment period (Exhibits 8.1 8.3). 23. Public Use and Interest (RCW 58.17.212; Chapter 35.79 RCW; Title 12 PTMC, and PTMC 20.0I.235(D). a. The proposed partial plat vacation and street vacation must be evaluated under the b. The record demonstrates that the interior lot lines and the subject portion of McClellan Street do not provide transportation, access, or utility functions and are not required for present or future public use. Retention of these features would not provide a public benefit and instead imposes constraints on efficient use of land. c. The proposal facilitates consolidation of parcels consistent with the R-IV zoning district and supports infill housing development within an area already served by infrastructure, consistent with Comprehensive Plan policies. d. Public interests are preserved through continued access via 9th and 10th Streets and through the ability to reserve utility or access easements if necessary. e. Given, the existence of a sewer main, the area will remain open space. f. These findings are supported by substantial evidence in the record and are made in accordance with PTMC 20.01.235(D). g. Pursuant to PTMC 20.01.235(D), the request is supported by substantial evidence in the record, applies all applicable approval criteria, and provides a reasoned explanation linking the facts to the conclusion that the proposal serves the public use and interest. II. CONCLUSIONS OF LAW A. Authority and Jurisdiction 1. The City of Port Townsend Hearing Examiner has authority to review and approve a partial vacation of a recorded subdivision plat pursuant to RCW 58.17.212, RCW 58.17.217, and Title 20 PTMC, and to conduct an open-record public hearing and issue findings and recommendations to the City Council regarding a street vacation pursuant to Chapter 35.79 RCW. 2. The application was properly processed as a Type III permit under Title 20 PTMC, and all procedural requirements related to completeness review, notice, public hearing, and record development were satisfied. B. Partial Plat Vacation RCW 58.17.212 and Title 18 PTMC 3. RCW 58.17.212 authorizes the vacation of all or part of a recorded plat upon a determination that the requested vacation serves the public use and interest, provided that statutory requirements related to ownership consent and restrictive covenants are satisfied. 4. Based on the Findings of Fact and the analysis contained in Section VII of this staff report, the partial plat vacation of the Eisenbeis Addition removes obsolete interior lot lines created under historic platting practices that no longer serve an independent public purpose. 5. The partial plat vacation does not impair lawful access, does not eliminate public utilities or public services, and does not create substandard or landlocked parcels. 6. The partial plat vacation advances the purposes of Title 18 PTMC by promoting orderly land division, aligning parcel configuration with existing zoning, and enabling efficient urban land use consistent with adopted Comprehensive Plan policies. 7. The partial plat vacation therefore satisfies the requirements of RCW 58.17.212 and Title 18 PTMC, subject to conditions ensuring ownership consent, covenant resolution, and recordation. C. Street Vacation Chapter 35.79 RCW 8. Chapter 35.79 RCW authorizes municipalities to vacate streets and rights-of-way that are no longer required for public use, subject to public hearing, compensation where applicable, and reservation of public interests. 9. Based on the Findings of Fact, the portion of McClellan Street proposed for vacation is unimproved, and has never functioned as a transportation facility, access route, emergency route, or utility corridor. 10. The vacated right-of-way is not identified as necessary for present or future public transportation purposes in the Comprehensive Plan Transportation Element or Capital Facilities Plan. 11. Public interests related to access, utilities, and future connectivity can be preserved through reservation of easements pursuant to RCW 35.79.030. 12. The proposed street vacation satisfies the requirements of Chapter 35.79 RCW, subject to City Council adoption of a street vacation ordinance and compliance with statutory compensation and easement provisions. D. Title 12 PTMC Streets, Sidewalks, and Transportation 13. Chapter 12.20 PTMC establishes criteria governing street vacations and places the burden of proof on the applicant to demonstrate that a vacation will not be detrimental to the public interest. 14. Based on the Findings of Fact and the analysis in Section VII, all applicable criteria of PTMC 12.20.060(A) through (J) have been satisfied, including: a. the absence of a demonstrated public transportation need for the unopened right-of-way; b. preservation of adequate vehicular, pedestrian, bicycle, and emergency access; c. preservation of public utility service potential; and d. consistency with adopted transportation and land use plans. 15. The street vacation is therefore consistent with the intent and requirements of Title 12 PTMC, subject to conditions. E. Zoning and Land Division Title 17 PTMC and Title 18 PTMC 16. The subject property is zoned R-IV (MF) under Title 17 PTMC, a zoning district that anticipates consolidated parcels and coordinated higher-density residential development. 17. The proposed plat and street vacations do not change zoning designations, permitted uses, density allowances, or development standards. 18. The proposal is consistent with the intent and provisions of Title 17 PTMC and Title 18 PTMC and does not create zoning nonconformities. F. Utilities and Infrastructure Title 13 PTMC and Engineering Design Standards 19. The requested vacations do not approve installation, modification, or relocation of utilities or public infrastructure. 20. Compliance with Title 13 PTMC and the City of Port Townsend Engineering Design Standards (EDS) will be required at the time of subsequent civil and building permit review. 21. The City retains full authority to impose utility, frontage improvement, stormwater, and infrastructure requirements consistent with adopted standards. G. Environmental Review Chapter43.21C RCW, Chapter 197-11 WAC, and Title 19 PTMC 22. The proposed partial plat vacation and street vacation are legal actions that do not authorize physical development or land disturbance. 23. The proposal is categorically exempt from SEPA pursuant to WAC 197-11-800(1)(d) and Chapter 19.04 PTMC. 24. No critical areas regulated under Title 19 PTMC are affected by the requested actions. 25. Environmental review obligations are preserved for any future project actions. H. Comprehensive Plan Consistency 26. The Port Townsend Comprehensive Plan designates the subject area for urban residential development and prioritizes efficient use of land and infrastructure. 27. The Comprehensive Plan supports infill development, consolidated development patterns, and flexibility in vacating unused rights-of-way where public interests are preserved. 28. The partial plat vacation and street vacation implement, and do not conflict with, applicable Comprehensive Plan policies. J. Overall Conclusion 32. Based on the Findings of Fact, the analysis of applicable law, and the complete administrative record, the requested partial plat vacation and street vacation: a. comply with applicable RCW, PTMC, WAC, Comprehensive Plan, and Engineering Design Standards provisions; b. preserve public access, utilities, and governmental authority; and c. serve the public use and interest. RECOMMENDED CONDITIONS OF APPROVAL Based on the foregoing Findings of Fact and Conclusions and the following recommended conditions, staff recommends approval of the proposed street and partial plat vacation permit, Application No. LUP26-013. 1. No Authorization of Development. Approval of the partial plat vacation and the recommendation for vacation of the McClellan Street right-of-way are limited solely to the legal actions requested and do not authorize construction, grading, land disturbance, installation of utilities, or any physical development of the subject property. This approval does not approve site design, building placement, height, massing, density, parking configuration, traffic impacts, utility capacity, stormwater management, environmental impacts, or neighborhood compatibility. Authority: Chapter 19.27 RCW; PTMC 20.01.130. 2. No Approval by Implication. Nothing in this approval shall be construed as a commitment by the City to approve any future development proposal on the subject property, nor as a prejudgment of issues reserved for subsequent permit review. Authority: PTMC 20.01.130. 3. Recordation of Partial Plat Vacation. The partial plat vacation shall be recorded with the Jefferson County Auditor prior to issuance of any permit or approval that relies upon the revised plat configuration, including but not limited to civil, building, or land use permits. Authority: RCW 58.17.212; PTMC 20.01.140. 4. Prior to recording anything, the Applicant shall submit a survey exhibit prepared, stamped, and signed by a Washington State licensed land surveyor that clearly depicts the portion of the recorded plat proposed for vacation. The survey shall: a. Delineate the area proposed for vacation relative to the original recorded plat, referencing the plat name, recording number, and lot/block layout. b. Show all adjacent lots and tracts, including current ownership as reflected in the most recent title report. c. Identify and depict all existing easements, rights-of-way, streets, utilities, and other encumbrances within or adjacent to the area proposed for vacation. d. Provide dimensions and boundaries for the right-of-way or street width proposed for vacation. e. Be consistent with the legal description contained in the vacation approval and suitable for recording with the Jefferson County Auditor. g. Final plat vacation documents and legal descriptions shall be prepared by a Washington- licensed land surveyor at the time of final recording. The City shall coordinate document routing for required agency signatures, including Assessor and Treasurer review. h. The survey exhibit shall be subject to review and approval by the City of Port Townsend Planning and Community Development Director and Public Works Director (or their designees) for consistency with the approved vacation and applicable municipal code provisions. i. Following approval,the City shall coordinate preparation and routing of final documents for recording with the Jefferson County Auditor. The applicant shall be responsible for associated fees, but document routing will occur through City processes to ensure all required signatures, including those of the Assessor and Treasurer, are obtained. 5. City Council Legislative Action Required. The vacation of the undeveloped portion of McClellan Street right-of-way shall not take effect unless and until the Port Townsend City Council adopts a street vacation ordinance in accordance with Chapter 35. 79 RCW. Authority: RCW 35.79.010; PTMC 12.20.080. 6. Determination of Compensation. Any compensation for the vacated right-of-way shall be determined by the City Council in accordance with RCW 35.79.030, unless expressly waived by City Council action. City Council may waive the requirement to obtain an appraisal provided that qualified city personnel provide a written determination that the value of property received will be equal to or greater than the value of the right-of-way vacated. City codes spec rec Plan goals and policies. The provision of permanent supportive housing at the site constitutes adequate value received in exchange for the vacated right-of-way consistent with the 2025 . Authority: RCW 35.79.030, Chapter. 12.20.090 PTMC. 7. Reservation of Public Utility Easements. The City shall reserve and record perpetual public utility easements within the vacated right-of-way as necessary to preserve present or future water, sewer, stormwater, power, communications, or other public services. Authority: RCW 35.79.030; PTMC 12.20.060(D) and (E). 8. Pedestrian or Trail Easements. If the City determines that future non-motorized connectivity is necessary to serve the public interest, a pedestrian or trail easement shall be reserved within the vacated right-of-way, consistent with PTMC 12.20.060(F) and the Comprehensive Plan Transportation Element. Authority: PTMC 12.20.060(F); Comprehensive Plan. 9. Recordation of Street Vacation Ordinance. The street vacation ordinance shall be recorded with the Jefferson County Auditor prior to vesting of title to the vacated right-of-way in the abutting property owner(s). Authority: RCW 35.79.040; PTMC 12.20.110. 10. Compliance with Utility and Infrastructure Standards. All future development shall comply with Title 13 PTMC and the City of Port Townsend Engineering Design Standards, including but not limited to requirements related to utility service, stormwater management, frontage improvements, and infrastructure capacity. require infrastructure improvements or mitigation at subsequent permit stages. Authority: Title 13 PTMC; Engineering Design Standards. 11. Conditions Run with the Land. These conditions shall run with the land and shall be binding upon the Applicant and all successors in interest. Authority: PTMC 20.01.140. 12. Severability. If any condition of approval is found to be invalid or unenforceable, such invalidity shall not affect the validity or enforceability of the remaining conditions. Authority: PTMC 20.01.330. Submitted by: Ryan Harriman, EMPA, AICP Planning Manager City of Port Townsend Exhibit 1 Staff Report Exhibit 2 Plat Vacation Application Exhibit 3 Exhibit 6 Public Comments 6.1. Jeremy Denniston 04092026 6.2. Jeremy Denniston 04142026 6.3. Holly Postmus 04222026 6.4. Linda Tilley 04152026 6.5. Linda Tilley 04162026 6.6. Carol Dutra 04212026 Exhibit 7 Title Report 7.1 Title Report One 7.2 Title Report Two 7.3 Title Report Three Exhibit 8 Applicant Response To Public Comments 8.1 - Applicant response to public comments from Holly Postmus 8.2 - Applicant response to public comments from Linda Tilley 8.3 - Applicant response to public comments from Carol Dutra Exhibit 9 Vicinity Map Exhibit 10 Eisenbeis Addition Plat Map, 1888 Exhibit 11 Letter of SEPA Exemption Exhibit 12 Notice of Public Hearing !33)'.-%.4 !.$ $)3#,!)-%2 /& 6!#!4%$ 2)'(4-OF-7!9 ).4%2%34 2¤¢®±£¨­¦ 2¤°´¤²³¤£ "¸Ȁ Bayside Housing & Services !¥³¤± 2¤¢®±£¨­¦ 2¤³´±­ 4®Ȁ Bayside Housing & Services 310 Hadlock Bay Road Port Hadlock, WA 98339 !33)'.-%.4 !.$ $)3#,!)-%2 /& ).4%2%34 ). 6!#!4%$ 2)'(4-OF-WAY THIS ASSIGNMENT AND DISCLAIMER OF INTEREST IN VACATED RIGHT-OF-WAY is made effective this 3rd day of September, 2026, by BAYSIDE HOUSING & SERVICES, a Washington nonprofit corporation ("Owner"). RECITALS A. Owner is the fee owner of the following properties located in Jefferson County, Washington: 7¤²³¤±­ 0±®¯¤±³¸Ȁ Lots 3 and 4, Supplemental Plat of Eisenbeis Addition to the City of Port Townsend, Block 199, (APN 948319901), together with all related ownership interests. % ²³¤±­ 0±®¯¤±³¸Ȁ Lots 5 and 6 Supplemental Plat of Eisenbeis Addition to the City of Port Townsend, Block 198 (APN 948319802), together with all related ownership interests. B. The City of Port Townsend has approved, or is in the process of approving, the vacation of a portion of McClellan Avenue Right-of-Way adjacent to the above-described properties. C. Pursuant to RCW 35.79.040, ownership of vacated right-of-way would ordinarily accrue to the abutting properties. D. Because all affected properties are owned by the same owner, the Owner desires that any interest which would otherwise accrue to the Eastern Property shall instead accrue exclusively to the Western Property. ASSIGNMENT NOW, THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged: 1. $¨²¢« ¨¬¤± ®¥ % ²³¤±­ 0 ±¢¤« )­³¤±¤²³ Owner, in its capacity as owner of the Eastern Property, hereby disclaims, releases, relinquishes, and assigns any and all right, title, and interest which may accrue now or in the future to the Eastern Property as a result of the vacation of the McClellan Avenue Right- of-Way. 2. !²²¨¦­¬¤­³ ³® 7¤²³¤±­ 0 ±¢¤« Owner hereby assigns and conveys all such right, title, and interest to the Western Property, being Lots 3 and 4, Supplemental Plat of Eisenbeis Addition to the City of Port Townsend, Block 199, (APN 948319901) 3. Intent It is the express intent of this instrument that the entire vacated right-of-way described in Exhibit A attached hereto shall accrue to and become part of the Western Property and that no portion thereof shall accrue to or remain appurtenant to the Eastern Property. 4. 2´­­¨­¦ 7¨³§ ³§¤ , ­£ This Assignment shall run with the land and shall be binding upon Owner and all successors and assigns. 5. &´±³§¤± !²²´± ­¢¤² Owner agrees to execute any additional documents reasonably required by the Jefferson County Auditor, title company, surveyor, or governmental authority to effectuate the intent of this instrument. OWNER BAYSIDE HOUSING & SERVICES a Washington nonprofit corporation By: ___________________________ Gary J Keister, Executive Director Bayside Housing & Services Date: ______________________ ACKNOWLEDGMENT (State of Washington notary block) After Recording Return to: Office of City Attorney City of Port Townsend 250 Madison Street, Suite 2 Port Townsend, WA 98368 COVENANT REGARDING AFFORDABLE HOUSING Grantor: Bayside Housing & Services Grantee: City of Port Townsend Assessor’s Tax Parcel Numbers: 948319901 1. Property. thth 1.1. The property subject to this Covenant is located between 9 and 10 Street and Rosecrans Street and Hancock Street and is legally described as follows: ALL OF LOTS 1 TO 4 INCLUSIVE, IN BLOCK 199 OF THE SUPPLEMENTAL PLAT OF THE EISENBEIS ADDITION TO THE CITY OF PORT TOWNSEND, AS PER PLAT RECORDED IN VOLUME 2 OF PLATS, ON PAGE 24, RECORDS OF JEFFERSON COUNTY, WASHINGTON; TOGETHER WITH THAT PORTION OF VACATED McCLELLAN AVENUE AS APPROVED UNDER CITY OF PORT TOWNSEND FILE NUMBER LUP26-013 AND FILED UNDER ORDINANCE NUMBER 3371, DESCRIBED AS FOLLOWS: ALL OF McCLELLAN AVENUE LYING BETWEEN LOTS 5 AND 6 IN BLOCK 198 AND LOTS 3 AND 4 IN BLOCK 199 OF THE SUPPLEMENTAL PLAT OF EISENBEIS ADDITION TO THE CITY OF PORT TOWNSEND, AS PER PLAT RECORDED IN VOLUME 2 OF PLATS, ON PAGE 24, RECORDS OF JEFFERSON COUNTY, WASHINGTON STATE; TOGETHER WITH THE WEST HALF OF McCLELLAN AVENUE LYING ADJACENT TO AND ABUTTING LOTS 1 AND 2 IN BLOCK 199 OF SAID SUPPLEMENTAL PLAT OF EISENBEIS ADDITION TO THE CITY OF PORT TOWNSEND; SITUATE IN THE CITY OF PORT TOWNSEND, COUNTY OF JEFFERSON, STATE OF WASHINGTON. 1.2. Bayside Housing & Services, a nonprofit corporation (“Bayside”), is the current owner of the Property. The City of Port Townsend vacated the right-of-way under Ordinance Number 3371 adjacent to lots 1 through 4 of the Eisenbeis Addition Block 199 plat. COVENANTS FOR AFFORDABILITY - 1 2.Compensation for Right-of-Way Vacation. 2.1. Resolution No. 26-013 and City File No. LUP 26-013 established the conditions to vacate the right-of-way, including the requirement that Bayside execute a deed restriction equal to or greater than the value of the vacated right-of-way for the intangible benefit of providing affordable housing. 2.2. Port Townsend Municipal Code (PTMC) 12.20.090(A) compensation for the appraised value of the vacated right-of-way prior to the vacation becoming effective. 2.3. Bayside completed and submitted to the City an appraisal of the right-of-way valuing the right-of-way at $60,000. 2.4. PTMC 12.20.090(B) authorizes the City to receive intangible value or benefit as the form of compensation for the value of the right-of-way and the City has determined that supporting affordable housing projects is a form of intangible value or benefit under PTMC 12.20.090(B). 2.5. The City determines that the value of the right-of-way to be vacated is $60,000 and that the affordability covenants contained bellowed are sufficient compensation to meet the requirements of Chapter 12.20 PTMC. 3. Covenants. 3.1. Bayside agrees and covenants that it, its heirs, successors, and assigns, will use the residential units to be constructed on the Property only for low-income housing. 3.2. Bayside must make the low-income residential units available to individuals and/or families earning no more than 50% of the area median income (AMI). 3.3. The Property must be used for low-income residential units and the low-income residential requirements in these covenants must be in place for at least 40 years. 3.4. Prior to any transfer of the Property within forty (40) years from the date of certificate of occupancy, the then-current owner shall provide at least 30 days’ advance written notice to the City, together with sufficient information about the proposed transferee(s) to allow the City to determine if the proposed transferee(s) meets the requirements of these covenants. 3.4.1. Notice shall be given to the City at the following address: City of Port Townsend Attn: City Manager 250 dison Street, Ste. 2 Port Townsend, WA 98368 3.5. If within forty (40) years from the date of certificate of occupancy, the Property is conveyed, sold, rented, or otherwise transferred to an individual or individuals whose income is above the thresholds above (50% AMI) then the current owner must repay the City the value of the right-of-way ($60,000), plus inflation. COVENANTS FOR AFFORDABILITY - 2 4. Dispute Resolution. 4.1. Any dispute arising under or in connection with this instrument shall be brought to the attention of the City and/or Bayside, as appropriate, at the earliest possible time in order that such matters may be addressed or other appropriate action promptly taken. If the dispute cannot be resolved, it may be submitted to mediation or non-binding arbitration upon the approval of all parties involved. Nothing shall prevent any party from seeking recourse in the Superior Court of Jefferson County, Washington. 5. Attorneys’ Fees. 5.1. In the event any action, suit, or proceeding is instituted regarding this instrument, the successful party shall be entitled to court costs and reasonable attorneys’ fees. 6. Entire Agreement. 6.1. This instrument contains the entire understanding between the parties and supersedes any prior understandings and instruments between them respecting the subject matter hereof. There are no other representations, oral or written, between and among the parties hereto or any of them, relating to the subject matter of this instrument. No amendment of or supplement to this instrument shall be valid or effective unless made in writing and executed by the parties to this Covenant and the then-current owner of the Property. 7. Additional Documents. 7.1. Each party agrees to take such action and to execute, acknowledge, and deliver all documents and instruments as may be desired by the other party more effectively to carry out the purposes of this instrument. 8. Binding Effect. 8.1. The benefits granted in this Covenant shall inure to the benefit of the then-current owner of the Property and their heirs, personal representatives, successors, and assigns. The provisions of this instrument shall run with the land forever unless modified or terminated by written agreement signed by the then-current owner of the Property and the City. 9. Construction. 9.1. The section headings throughout this instrument are for convenience and reference only and the words contained in them shall not be held to expand, modify, amplify, or aid in the interpretation, construction, or meaning of this instrument. COVENANTS FOR AFFORDABILITY - 3 10. Applicable Law. 10.1.This instrument shall be construed and interpreted under the laws of the State of Washington. The undersigned have executed this instrument this _____ day of __________________, 2026. BAYSIDE HOUSING & SERVICES CITY OF PORT TOWNSEND By: __________________________ By: __________________________ Steve King, Interim City Manager Name, Title COVENANTS FOR AFFORDABILITY - 4 STATE OF WASHINGTON) ) ss. COUNTY OF JEFFERSON ) I certify that I know or have satisfactory evidence that _____________________ is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument and acknowledged it as the Executive Director of Bayside Housing & Services, to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated: _______________________ ___________________________________________ \[Print name:\] Notary Public in and for the State of Washington, residing at _________________________________. My commission expires: ______________________. STATE OF WASHINGTON ) ) ss. COUNTY OF JEFFERSON ) On this ____ day of _________________, 2026, before me personally appeared Steve King, to me known to be the Interim City Manager of the City of Port Townsend, the municipality that executed the foregoing instrument and acknowledged it to be the free and voluntary act and deed of the municipality, for the uses and purposes mentioned in the instrument, and on oath stated that he is authorized to execute the instrument on behalf of the municipality. ___________________________________________ \[Print name:\] Notary Public in and for the State of Washington, residing at _________________________________. My commission expires: ______________________. COVENANTS FOR AFFORDABILITY - 5 APPRAISAL REPORT APPRAISAL RELEVANT TO STREET VACATION ADJACENT TO APNS 948319901 AND 948319802 PORT TOWNSEND, WASHINGTON 98368 SH&H FILE 16758-26 August 24, 2026 Bill Rucker Bayside Housing & Services 310 Hadlock Bay Road Port Hadlock, WA 98339 Re: Street Vacation McClellan Street right-of-way south of 10th Street Adjacent to Jefferson County Assessor Parcels 948319901 and 948319802 Port Townsend, Washington 98368 SH&H File 16758-26 Dear Mr. Rucker: At your request, we have completed an appraisal relevant to the above-referenced property. This appraisal report has been prepared in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by The Appraisal Foundation. The subject property is a portion of the McClellan Street public right-of-way located south of 10th Street in Port Townsend, Washington, between and adjacent to Jefferson County Assessor Parcels 948319901 and 948319802. Both abutting parcels are owned by Bayside Housing & Services and are zoned R-IV(MF), High Density Multifamily. The purpose of the appraisal is to develop a supported opinion of the market value of the proposed street vacation as of the date of inspection. The client has indicated that the City of Port Townsend will retain an easement to allow continuation of utility services. Based on the analysis and conclusions presented within this report, it is the opinion of the appraisers that the market value of the proposed street vacation adjacent to Jefferson Townsend, containing 9,943square feet, as of the date of inspection, August 6, 2026, is: SIXTYTHOUSAND DOLLARS $60,000 In completing this assignment, sufficient background information and supporting facts have been analyzed to arrive at a value conclusion. The appraisal report that follows summarizes the assignment, describes the area and the subject property, and explains the valuation techniques and reasoning leading to the final ntion is directed tothe underlying Assumptions and Limiting Conditions which are included in the accompanying report. Respectfully submitted, ______________________________ Barbro A. Hines, MAI, SRA State of Washington Certification 1101044 _____________________________ Anthony V. Jackson, Associate State of Washington Certification 1102562 TABLE OF CONTENTS Title Page ........................................................................................................................... i Letter of Transmittal ......................................................................................................... ii Table of Contents ............................................................................................................. iv Subject Maps and Exhibits................................................................................................ v Factual Description Property Identification ...................................................................................................... 1 Legal Description .............................................................................................................. 1 Intended Use and User of the Appraisal ........................................................................... 1 Property Rights Appraised ................................................................................................ 2 Scope of the Appraisal ...................................................................................................... 4 Location Description ......................................................................................................... 5 Site Description ................................................................................................................. 8 Zoning ............................................................................................................................. 14 Taxes and Assessments ................................................................................................... 16 Analysis of Data and Opinions of Appraiser Highest and Best Use ...................................................................................................... 17 Property Valuation .......................................................................................................... 19 Sales Comparison Approach ........................................................................................... 21 Reconciliation ................................................................................................................. 42 Certification .................................................................................................................... 43 Qualifications .................................................................................................................. 45 Assumptions and Limiting Conditions ........................................................................... 49 Extraordinary Assumptions and/or Hypothetical Conditions ......................................... 54 Addenda SUBJECT PHOTOS SOUTHERLY VIEW OF PROPOSED VACATION AREA ADDITIONAL SOUTHERLY VIEW OF THE PROPOSED VACATION AREA NORTHWESTERLY VIEW OF ADJACENT PARCEL ADDITIONAL VIEW OF STREET VACATION AREA FACTUAL DESCRIPTION This appraisal report is intended to comply with the reporting requirements set forth under the Uniform Standards of Professional Appraisal Practice. The depth of discussion contained in this report is specific to the needs of the client named below and for the intended use stated within this report. PROPERTY IDENTIFICATION Appraisal relevant to Street Vacation: McClellan Street right-of-way, adjacent to Jefferson County Assessor Parcels 948319901 and 948319802 Port Townsend, Washington LEGAL DESCRIPTION The legal description of the proposed street vacation is as follows: ALL OF McCLELLAN AVENUE LYING BETWEEN LOTS 5 AND 6 IN BLOCK 198 AND LOTS 3 AND 4 IN BLOCK 199 OF THE SUPPLEMENTAL PLAT OF EISENBEIS ADDITION TO THE CITY OF PORT TOWNSEND, AS PER PLAT RECORDED IN VOLUME 2 OF PLATS, ON PAGE 24, RECORDS OF JEFFERSON COUNTY, WASHINGTON STATE; TOGETHER WITH THE WEST HALF OF McCLELLAN AVENUE LYING ADJACENT TO AND ABUTTING LOTS 1 AND 2 IN BLOCK 199 OF SAID SUPPLEMENTAL PLAT OF EISENBEIS ADDITION TO THE CITY OF PORT TOWNSEND; SAID STREET VACATION CONTAINING 9,943 SQUARE FEET, MORE OR LESS; SITUATE IN THE CITY OF PORT TOWNSEND, COUNTY OF JEFFERSON, STATE OF WASHINGTON. INTENDED USE AND USER OF THE APPRAISAL This appraisal report is intended for use by Bayside Housing & Services as a basis for real estate decisions concerning a potential vacation of the McClellan Street right-of-way by the City of Port Townsend. No additional intended users have been identified. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 1 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION Intended Use is defined as: review assignment results, as identified by the appraiser based on communication with the 1 Intended User is defined as: type, as users of the appraisal or appraisal review report by the appraiser, based on 2 A Client is defined as: The party or parties (i.e., individual, group, or entity) who engage an appraiser by employment or contract in a specific assignment, whether directly or 3 EFFECTIVE VALUATION DATES Date of Inspection: August 6, 2026 Date of Report: August 24, 2026 PROPERTY RIGHTS APPRAISED The property right appraised is the fee simple interest. The fee simple estate is defined as: only to the limitations imposed by the governmental powers of taxation, 4 MARKETING/EXPOSURE TIME The indicated exposure time (i.e., the length of time the subject property would have been exposed for sale in the market had it sold at the market value concluded in this analysis as of the date of this valuation) would have been twelve months or less. The estimated marketing time (i.e., the amount of time it would probably take to sell the subject property if exposed in the market beginning on the date of this valuation) is also estimated to be twelve months or less. These conclusions are based on sales of similar type properties in the market. 1 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 5. 2 Ibid, p. 5. 3 Ibid, p. 3. 4 th The Dictionary of Real Estate Appraisal, 8 Edition, Appraisal Institute, Chicago, 2026, p. 65. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 2 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION MOST PROBABLE BUYER The most probable purchaser of the subject property is an abutting property owner. SALES HISTORY The subject property is part of the McClellan Street public right-of-way under the jurisdiction of the City of Port Townsend. The abutting parcels, 948319901 and 948319802, are owned by Bayside Housing & Services. This appraisal is to be used to facilitate the potential sale of the dedicated street right of way by the City of Port Townsend to Bayside Housing & Services. We are not aware of any transactions relative to the subject property over the past five years. MARKET VALUE The definition of Market Value is as follows: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self- 5 interest, and assuming that neither is under undue duress 5 th The Dictionary of Real Estate Appraisal, 8 Edition, Appraisal Institute, Chicago, 2026, p. 105. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 3 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION SCOPE OF THE APPRAISAL The scope of this assignment included interviews with various individuals in an effort to determine the Highest and Best Use of the property, and the researching of sales and listings of similar properties in the subject area, and the region, to arrive at an estimate of value for the subject property. This appraisal assignment involved an inspection of the subject property on August 6, 2026. Descriptive information relating to the subject property was obtained from the City of Port Townsend, the client and their representatives, and a physical inspection of the property. Within this appraisal all three approaches (Income, Cost, and Sales Comparison) to value have been considered. The subject site is a public street right of way in the city limits of Port Townsend. In this instance, the relevant methodologies for valuing land have been reviewed with the Sales Comparison Approach representing the best method for this UNAVAILABILITY OF INFORMATION We were not provided with the following information applicable to the subject property: 1. An environmental risk assessment 2. Any wetlands reports or studies 3. A soils report 4. A title report 5. The proposed easement agreement for the property rights the seller will retain Therefore, any issues which might be raised if this information were available is not known or considered. We are not aware of any environmental issues, easements/encumbrances, or soils/geotechnical concerns that would quantifiably impact the subject property. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 4 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION LOCATION DESCRIPTION The subject property is located in the city of Port Townsend, in Jefferson County, Washington. The neighborhood is improved with mostly single-family and multi-family residential uses. Properties in the neighborhood are of varying ages, with both older and more recent construction observed in the area. Port Townsend represents the only incorporated area in Jefferson County. The 2010 Census resulted in a county population of 29,872. The 2020 Census resulted in a county population of 32,977. The 2026 estimate of the Jefferson County population equals 34,100. This small population base reflects the rural nature of the county, and the resource-based economy. The majority of the population is concentrated in the eastern part of the county which includes the city of Port Townsend, and the communities of Port Hadlock, Chimacum, Quilcene and Port Ludlow. Port Townsend is home to approximately one- third of the county population, with an estimated 2026 population of 10,780 individuals, compared to 8,334 in the 2000 Census, 9,113 in the 2010 Census, and 10,148 in the 2020 Census. By most accounts, it is likely that future population growth for Jefferson County will continue at a slow to moderate pace. Port Townsend is also expected to continue to be the primary area of growth, which may be channeled by the pressures imposed by the Growth Management Act. The subject is specifically located within an area developed with single-family and multi- family residential uses and is situated approximately two miles southwesterly of the downtown area of the city. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 5 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION AREA MAP PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 6 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION LOCATION MAP PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 7 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION SITE DESCRIPTION The subject property is the portion of the McClellan Street public right-of-way proposed th for vacation between 9 Street and 10th Street and adjacent to Jefferson County Assessor Parcels 948319901 and 948319802 in Port Townsend, Washington. The proposed vacated area will be 9,943 square feet. following page. Details pertaining to the subject property are provided as follows: Location: McClellan Street right-of-way south of 10th Street, between and adjacent to Jefferson County Assessor Parcels 948319901 and 948319802. Both abutting parcels are zoned R-IV(MF), High Density Multifamily. Area: The proposed vacated area is reported to be 9,943 square feet. Topography, Shape & Coverage: The right-of-way generally extends north-south between 9th Street and 10th Street. The proposed vacation area is undeveloped. Utilities: Public utilities serve the abutting parcels. The client has indicated that an easement will remain on the subject site to allow continuation of utility services. Easements and Encumbrances: A title report was not available for the subject property. We are aware of utilities onsite, for which the city will retain easements in order to operate, access and maintain the utility services. We are not aware of any additional easements that would negatively impact the subject site. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 8 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION AERIAL VIEW (ABUTTING PARCELS OUTLINED IN ORANGE, SUBJECT IS OUTLINED IN YELLOW) PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 9 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION Environmental Concerns: We are not aware of any hazardous substances on the subject property which would create a significant impact on its value. Soils: We have not been provided a site-specific soil report. Based on surrounding uses, it appears that the soils can support the legally permitted uses. Flood Plain: According to the Flood Insurance Map Number 53031C0131C, effective date June 7, 2019, the subject site is not located within a flood zone. Surrounding Uses: The subject is bordered by the two Bayside Housing & Services parcels and is situated between 9th Street and 10th Street. The wider area includes multi- family and single-family residential uses. Larger Parcel Discussion: The appropriate valuation methodology to be employed in valuing the subject property, which is a ATF) method. ATF method assumes (that) land values are similar to vacant land values of properties adjacent to the property being appraised. To complete this analysis, it is necessary to identify the larger parcel. The larger parcel is then the basis of the valuation analysis. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 10 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION PROPOSED AREA TO BE VACATED PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 11 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION The subject is a segment of the McClellan Street public right-of-way in Port Townsend, thth located between 9 Street and 10 Street. The proposed acquisition area is of a larger ownership. In order to estimate market value, part of the appraisal problem is to identify the larger parcel for valuation purposes. In defining the larger parcel there are three basic conditions that need to be established. 1.) Unity of Ownership 2.) Contiguity 3.) Unity of Use The City of Port Townsend owns and operates a network of public street right of ways and its supporting real estate, of which the subject property is a part. Therefore, the City of entire network of street right of ways could be one larger parcel from the , for a larger parcel to exist. network of street right of ways is noncontiguous, interrupted by roadways and properties under differing ownerships. property is used in conjunction with each other. The properties are utilized in support of network of street right of way infrastructure. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 12 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION Considering this discussion, one could easily and logically conclude that the larger parcel is represented by the entire group of properties. However, that portion of the larger parcel th which will be directly impacted by the proposed acquisition is located between 9 Street th and 10 It seems reasonable and logical that rather than appraising the entire group of properties used in support of the network of street right of way infrastructure, this immediate area can be considered for appraisal purposes as the larger parcel, which is the approach taken larger parcel may be all of one parcel, part of a parcel, or several parcels, depending 6 Considering the entire group of properties used in support of network of street right of way infrastructure as the subject property would unnecessarily complicate the appraisal assignment and valuation process, and would not likely have a significant impact on the appraisal, or result in any quantifiably significant difference in the estimate of the diminution of value of the subject property as a result of an acquisition of a small section of the group of properties. Thus, for purposes of this appraisal, the subject property, and the larger parcel, is identified as the section of a public street right thth of way (McClellan Street), located between 9 Street and 10 Street, between Jefferson County Assessor Parcels 948319901 and 948319802. The abutting parcels are under common ownership and are being planned as part of the Vince's Village development. The appraisal will analyze the effect of contiguity, unity of ownership, and unity of use without assuming that the entire City right-of-way network or unrelated parcels form the relevant larger parcel. 6 PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 13 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION ZONING The subject is within the City of Port Townsend and is adjacent to Jefferson County Assessor Parcels 948319901 and 948319802. Both abutting parcels are zoned R-IV(MF), High Density Multifamily. According to the Port Townsend Municipal Code, the purpose of the zone is as follows: This district accommodates larger scale multifamily structures at a minimum density of 32 units and a maximum of 60 units per 40,000 square feet of land area. A minimum density has been specified for this district in order to discourage use of this land for subordinate, lower density developments and to promote compact urban form for development for efficient land use, preservation of open space, and for the development and maintenance of fiscally and environmentally sustainable infrastructure. This district includes areas designed to be compatible with adjoining uses; to provide for development with a density and configuration that facilitates effective and efficient transit service; and to enable provision of affordable housing. Permitted uses include, but are not limited to various residential uses, including single-family dwellings and multi-family dwellings, limited commercial uses, and limited accessory uses. The proposed 32-unit multi-family development for the abutting parcels constitutes an outright permitted use. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 14 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION ZONING MAP APPROXIMATE SUBJECT AREA OUTLINED IN RED PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 15 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate FACTUAL DESCRIPTION TAXES AND ASSESSMENTS The subject property is a public right of way that is under the ownership of the City of Port Townsend and as such, has not been assessed. If the property were to be purchased by a private entity that is not tax exempt, the property would accordingly be assessed by the PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 16 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS HIGHEST AND BEST USE The subject is a public right-of-way. The initial valuation of the subject utilizes the cross the Fence configuration as a stand-alone property; rather, the analysis is relevant to the Highest and Best Use of adjacent or nearby properties. Highest and Best Use of Adjacent / Nearby Property In valuing the subject property, we will be considering the value of the economically viable land adjacent to, or in this case nearby, the subject under the ATF methodology, as will be discussed and explained in the Valuation portion of this report. This analysis will provide a basis upon which to form an opinion of the appropriate unit price for valuing the subject property. The premise considers the value of the economically viable adjacent and nearby parcels surrounding the subject property, predicated upon the highest and best use of the adjacent lands. The criterion for the determination of the highest and best use of the adjacent and nearby properties is based upon legal and physical considerations adjusted for financial feasibility and maximal productivity considerations. Legal Considerations: The first test of highest and best use is to determine what is legally permissible, or what can legally be constructed on the nearby properties. The subject is not zoned. The adjacent properties are zoned R-IV (MF), High Density Multifamily. Permitted uses within the R-IV (MF) zone include single-family dwellings and multi- family dwellings, limited commercial uses, and limited accessory uses. Physical Considerations: Factors influencing the use of the nearby sites include: location, size and shape, soils, availability of utilities and other site characteristics, nature of the adjoining land use, and terrain. The subject property and surrounding area is level, and all typical public utilities are available in the neighborhood. There are no flood zones or wetlands in the immediate area. The majority of the nearby sites are rectangular in shape. In terms of size, there are two abutting sites, containing areas of 10,454 square feet and 40,946 square feet, with an average site area of 25,700 square feet. These lots will be utilized in determining an analysis size for the subject within the valuation section presented further within this report. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 17 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS The appraisers know of no physical site limitations such as improper soils, unusual easements, etc., that would limit the development or use of the nearby properties as to what is permitted by zoning. Market Feasibility: (Financially Feasible and Maximally Productive): A financial feasibility is measured by whether it can produce a positive return on its investment. The factor having the most weight in determining highest and best use is the feasibility of a use which is primarily supported by perceived demand. One of the better indications of financial feasibility is the consideration of surrounding uses. The nearby properties under the R-IV (MF) zoning designation are primarily developed with multi-family residential uses. Given the trends for the area, the most financially feasible use for the nearby sites is in support of multi-family residential development. Conclusion: Legal, physical, and market considerations have been analyzed to evaluate the highest and best use of the economically viable properties near the subject property. This analysis was conducted to establish the use, and thus the value basis in applying the Across the Fence valuation methodology. After taking into consideration the factors cited above, the highest and best use of the nearby properties is in support of multi-family residential development. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 18 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPERTY VALUATION The Income Approach, Cost Approach and Sales Comparison Approach are the three basic techniques or approaches to value when appraising real property. Because the subject property is analyzed as an unimproved site, only those techniques applicable to Land Value derivation have been considered. The subject property represents a site that is utilized as part of a larger public right-of-way network. Properties similar to the subject are not typically sold as stand-alone properties because they provide a functional service to the public in terms of transportation routes. Therefore, there is no relevant comparable data from which to value the subject. Alternative viable methods had to be considered for the valuation of the acquisition area. The appropriate valuation methodology to be employed in valuing the subject property is the cross the Fence (ATF) method. 7 The underlying assumption is that the value of the subject site is equal to the value of adjoining lands. In this case, the subject is adjacent to parcels that are zoned R-IV (MF), High Density Multifamily. To estimate ATF value, a right-of-way corridor is divided into segments of similar highest and best use. Sales data for these uses is gathered, and the ATF value is estimated from the unit rates reflected based on properties with similar highest and best uses to the adjacent / nearby properties. The Across the Fence method is based on the Principle of Substitution. In theory, the factors to consider are the adjacent / nearby use and unit value. As discussed in the Highest and Best Use section, the subject will be analyzed based on a lot size of 25,700 square feet. Therefore, in the analysis to follow, for the basis of establishing a benchmark value we will assume an analysis lot size of 25,700 square feet. of nearby properties, the most likely use would be for a multi-family residential use. 7 PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 19 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Several procedures for the valuation of land may be available to the appraiser depending on available data. These include: 1. The sales comparison approach. Sales of similar vacant parcels are analyzed, compared, and adjusted to derive an indication of value for the land being appraised. 2. The allocation (abstraction) procedure. Sales of improved properties are analyzed, and the prices are allocated between land and improvements. 3. The extraction procedure. This is a variant of the allocation method, whereby the value of the contribution to the total value of the improvements are estimated, and then deducted from the total to leave land value. 4. The Income Capitalization procedures are as follows: a. The land residual procedure. The land is assumed to be improved to its highest and best use, and the net income imputable to the land after all expenses of operation and return attributable to the other agents in production is capitalized to derive an estimate of land value. b. The ground rent capitalization procedure. In this procedure the rent paid for the right to use and occupy land is capitalized to yield a value. Capitalization rates are derived from market data. c. The anticipated use (development) procedure. Undeveloped land is assumed to be subdivided, developed, and sold. Development costs, incentive costs and carrying charges are subtracted from the estimated proceeds of sale, and the net income projection is discounted over the estimated period required for market absorption of the developed sites to derive an indication of value for the land being appraised. The most applicable method in valuing the subject property is the Sales Comparison Approach. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 20 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS SALES COMPARISON APPROACH One of the most reliable indicators of value in an active market is derived by comparing the property being appraised with similar properties. This approach reflects the principle that a well-informed buyer will pay no more for a property than the cost involved in obtaining an equally satisfactory substitute property. A basic principle in the valuation of real estate is that no two properties are identical and, thus, adjustments are necessary to reflect the various differences. This formalizes the thought process often followed by buyers and sellers and tends to yield a range of indicated values for the property appraised. A few of the more common factors that may influence value are detailed below: 1. Location Location is the primary factor in the valuation of virtually all real estate. As applied to this appraisal, the highest land values are found with those tracts having good overall utility, with good access, favorable terrain features, and attractive amenities/views. 2. Size of Tract Another important factor is the size of the tract being considered. As a general rule, the smaller the parcel, the higher the per unit value (price per acre/square foot). However, this is not always the case as site size may impact development potential. 3. Terms and Conditions of Sale Sale prices listed for comparable sales are strongly influenced by terms and conditions of sale offered by the seller and by the motivation of both the buyer and the seller. When sale terms are attractive, with such features as a low down payment, low rate of interest, and payment over an extended period of time, prices tend to be inflated as opposed to the situation where the seller requires all cash. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 21 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS 4. Market Conditions The date of comparable sales is also important in estimating present land values. This is because of the cycles in land values. 5. Zoning and Potential Development Density The highest land values, on a per unit basis, are normally found under the higher density commercial uses, followed in succession by multifamily/office/industrial uses, single family use, suburban and rural residential, and, finally, agricultural and forestry, and open space use. While the existing zoning classification may not absolutely dictate future use of the land, it has a strong bearing on both sale prices and land values. A purchaser who must rezone land to a higher or different use must consider not only the probability of rezoning, but also the time and expense required. 6. Physical Features of the Land Physical features include topography or slope, provision for surface drainage, soil conditions, and the presence of wetlands, ground cover, and view, among others. When all of these conditions are favorable, a purchaser might reasonably be expected to pay a premium and when one or more are unfavorable, an offer to purchase will most probably be discounted. A search was conducted in the general market area for properties that offer similar zoning nearby R-IV (MF) properties, which are the basis for analysis. The search produced five comparable properties relevant for analysis. While these comparables are not identical to the subject, they provide a benchmark from which to arrive at a value for the subject property. The sales selected are delineated in the chart below, with a location map on the following page that shows the location of each comparable relevant to the subject. Each comparable is then discussed individually and accompanied by a photograph. The price per square foot is the unit of measurement utilized herein. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 22 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 23 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS COMPARABLE LAND SALES MAP PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 24 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 25 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 26 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 27 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 28 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 29 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 30 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 31 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 32 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 33 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 34 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Analysis of Comparable Sales In utilizing the comparables to estimate a value per lot for the subject property, each sale should be adjusted to the subject for dissimilarities. There are six common elements of comparison that should always be considered in sales comparison analysis. These are: Real property rights conveyed; Financing terms; Condition of sale; Date of sale; and Location and Physical characteristics. In analyzing the Location and Physical characteristics, adjustments may be considered for some dissimilarities among the comparables, primarily for location, site size, available utilities, site utility, and site improvements. The comparison process involves comparing similar properties that have sold with the subject. An adjustment process is applied to the comparables, with an adjustment chart presented further in this section. The adjustment process considers the thought process often followed by buyers and sellers in comparing different properties. Within the discussion herein, the characteristics are noted and compared to the subject. Where necessary, adjustments are made to the comparables in relationship to the subject. The top of the chart accounts for quantitative adjustments which are now discussed. Quantitative Adjustments When applicable, quantitative adjustments can be applied to the comparables for items such as property rights conveyed, financing terms, conditions of sale, and buyer expenditures after the purchase. The comparables are similar to the subject in all of these categories and no adjustments are required. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 35 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Market Conditions The next quantitative adjustment to consider is for market conditions. In analyzing the influence of the market conditions at the time of sale of the comparables in relation to the market conditions as of the date of appraisal, the key factor is the passage of time. More specifically, the question to be answered in its simplest form is whether there is any trend in general prices over time. The Date of sale for the comparables ranges from April 2023 through May 2025. The NWMLS is utilized to determine any trends over time. The chart below shows the median sale price of vacant land over the past year and a half for both the entire MLS (black line) and for Jefferson County (green line). As shown in the chart, the median sale price has large fluctuations but generally decreased over the past three years. The entire MLS data is more stable, likely due to a larger data set. The entire MLS data shows an overall increase in prices. The entire MLS data is given more weight, as this data set is more stable. However, a smaller increase than 5.08% (1.41% annually) is appropriate given some consideration to the Jefferson County data. Overall, a minimal upward adjustment of 1.0% annually, or 0.08% per month, is applied to the comparables for market conditions in the analysis to follow. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 36 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Qualitative Adjustments The Across the Fence (ATF) method is being implemented to estimate a value for the subject property. As previously determined, the analysis site size used herein is 25,700 square feet. This lot size is the basis for arriving at a benchmark value for the subject site under the ATF methodology. The adjustment process is discussed following the adjustment chart. COMPARABLE LAND SALE ADJUSTMENT CHART Comparable Number L-1L-2L-3L-4L-5 Property Subject2100 Gibbs St.24th & Gibbs999 Sherman St.313 Eddy Ct.323 Grant St. Port Townsend, WAPort Townsend, WAPort Townsend, WAPort Townsend, WAPort Townsend, WA Sale Price n/a$100,000$37,500$103,000$110,000$110,000 Property Rights Conveyed Fee SimpleFee SimpleFee SimpleFee SimpleFee SimpleFee Simple Adjustment$0$0$0$0$0 Adjusted Price$100,000$37,500$103,000$110,000$110,000 Financing Cash to SellerCash to SellerCash to SellerCash to SellerCash to Seller Adjustment$0$0$0$0$0 Adjusted Price$100,000$37,500$103,000$110,000$110,000 Conditions of Sale Arms LengthArms LengthArms LengthArms LengthArms Length Adjustment$0$0$0$0$0 Adjusted Price$100,000$37,500$103,000$110,000$110,000 Buyer Expenditures NoneNoneNoneNoneNone Adjustment$0$0$0$0$0 Adjusted Price$100,000$37,500$103,000$110,000$110,000 Date of Sale Aug-26Feb-24Mar-24Apr-23May-25Dec-24 Months Since Sale2929391419 Adjustment 1.00%2.42%2.42%3.25%1.17%1.58% Adjusted Price$102,417$38,406$106,348$111,283$111,742 Adjusted Price$102,417$38,406$106,348$111,283$111,742 Site Area (Sq.Ft.)25,70030,49210,0199,5835,0255,000 Price/Sq.Ft.$3.36$3.83$11.10$22.15$22.35 Qualitative Adjustments Location Port TownsendSimilarSimilarSimilarSimilarSimilar Adjustment Access AdequateInferiorInferiorInferiorSimilarSimilar Adjustment+++ Utilities Available All AvailableInferiorSimilarSimilarSimilarSimilar Adjustment+ Site Size (Sq.Ft.)25,70030,49210,0199,5835,0255,000 Adjustment--- -- - Site Utility AverageSimilarSimilarInferiorSimilarSimilar Adjustment+ Entitlements NoneNoneNoneNoneYesNone Adjustment- Zoning R-IV (MF)R-IIIR-IIIR-IIIR-IIIR-II Adjustment+++++ Total AdjustmentUpwardUpwardUpwardDownwardDownward PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 37 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Location All of the comparables are located in the same NWMLS area code as the subject. No adjustment is applied to the comparables for location. Access The subject has adequate access. Comparables L-1 through L-3 are on lots requiring road extensions for vehicular access and warrant upward adjustments. The remaining comparables are similar and are not adjusted. Utilities Available The subject area has access to all typical public utilities. Comparable L-1 would require an extension of the water and sewer lines of approximately 100 feet; warranting an upward adjustment. The remaining comparables are similar in terms of utilities available and are not adjusted. Site Size (Sq.Ft.) The subject is analyzed based on the analysis size of 25,700 square feet. All of the comparables except L-1 are smaller and warrant downward adjustments. L-1 is similar enough in size to forego an adjustment. Site Utility The subject is analyzed as having average site utility. The comparables are similar in this regard and are not adjusted. Entitlements The subject is analyzed as having no entitlements in place. L-4 has approval for a duplex, warranting a downward adjustment. The remaining comparables do not have entitlements and are not adjusted. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 38 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Zoning The subject is analyzed as having R-IV (MF) zoning in place. All of the comparables have similar allowed uses but have lower density allowances, warranting upward adjustments. Unit Value Conclusion After the comparison process, a base value greater than L-3 ($11.10/sq.ft.) and less than L- 4 ($22.15/sq.ft.) is supported. L-4 sold with entitlements in place and an approved building permit. This reduces the time and money necessary to prepare the site for development. Because of this, greater weight is given to L-3. Considering all factors, we conclude to a unit value of $12.00 per square foot. This value estimate is reflective of the market value of the subject site analyzed as though there are no use restrictions in place. However, the city will be retaining utility easements across the property. The base land value of $12.00 per square foot assumes that the owner has complete control over the site area to be acquired and that it can viably support residential development. This type of use, however, would be curtailed by the city as they will be maintaining a utility easement across the property, which reduces the bundle of rights that are being acquired. Thus, the question to be answered in this scenario is how much of an impact to value would such a restriction have on the subject property? PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 39 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS The amount of impact of the proposed easements to property value can be difficult to measure but can generally be classified by the severity of the impact to the underlying 8 rights. The following chart is an Easement Valuation Matrix categorizing the easement types and their general impacts to the total bundle of rights. 8 Right of Way Magazine, November/December 2014 https://eweb.irwaonline.org/eweb/upload/web_novdec_14_Valuation.pdf PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 40 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ANALYSIS OF DATA & OPINIONS OF APPRAISERS Some of the existing utilities cut through the subject site and reduce the usability. Thus, we conclude to an overall diminution to the impacted areas of the property at 50%. The previously determined base value of $12.00 per square foot and the 50% diminution results in a value as follows: Value by the Sales Comparison Approach as of August 6, 2026: $60,000 PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 41 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate RECONCILIATION ACROSS THE FENCE METHOD The Sales Comparison Approach is the only applicable valuation method for this appraisal assignment. Based on the preceding analysis, it is the opinion of the appraisers that the market value of the 9,943-square-foot right-of-way to be vacated, based on the Across the Fence method, as described herein, as of the date of inspection, August 6, 2026, is: SIXTY THOUSAND DOLLARS $60,000 PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 42 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate CERTIFICATION We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions and conclusions. 3. We have no present or prospective interest in the property that is the subject of this appraisal report and have no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. Barbro Hines has made a personal inspection of the property that is the subject of this report. 8. No one provided real property appraisal assistance to the persons signing this report in the preparation of and research contained within this report. 9. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or an approval of a loan. 12. The appraisers are competent and qualified to perform the appraisal assignment. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 43 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate CERTIFICATION 13.Wehave performed no services, asappraisersor in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 14.As of the date of this report, Barbro Hines, MAI, SRA has completed the requirements of the continuing education program for Designated Members ofthe Appraisal Institute. Respectfully submitted, _____________________________ Barbro A. Hines, MAI, SRA State of Washington License Number1101044 _____________________________ Anthony V. Jackson, Associate State of Washington License Number1102562 PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802Page 44 SH&H File 16758-26Barbro A. Hines, MAI, SRAAnthony V. Jackson, Associate QUALIFICATIONS BARBRO A. HINES, MAI, SRA EDUCATION Eastern Illinois University - Bachelor of Arts in Speech Communication PROFESSIONAL DESIGNATION MAI, Appraisal Institute SRA, Appraisal Institute PROFESSIONAL EDUCATION Appraisal Institute Courses: Introduction to Appraising Applied Residential Property Valuation Advanced Residential Form and Narrative Report Writing Basic Income Capitalization General Applications Advanced Income Capitalization Highest and Best Use and Market Analysis Advanced Sales Comparison and Cost Approaches Report Writing and Valuation Analysis Advanced Applications Standards of Professional Practice, Part A Standards of Professional Practice, Part B Business Practice and Ethics CERTIFICATIONS General Classification Washington State Certified Real Estate Appraiser State of Washington License Number 1101044 EXPERIENCE Partner/Appraiser SH&H Valuation and Consulting (formerly Strickland, Heischman, and Hoss), Tacoma, WA (1996 to present) Owner/Appraiser Barbro A. Hines and Associates, South Holland, IL (1989-1995) Associate Appraiser Ralph W. Hines and Associates, South Holland, IL (1986-1989) PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 45 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate QUALIFICATIONS APPRAISAL EXPERIENCE INCLUDES Agricultural Land Mobile Home Parks Apartments Offices (Professional and Medical) Automobile Dealerships Residential Bank Branches Restaurants Churches Retail Cold Storage/Food Processing Facilities Right-of-Way Conservation Easements Schools Gas Station/C-Stores Storage Complexes Hotels/Motels Subdivisions Industrial Properties Waterfront Properties COMPLETED APPRAISAL ASSIGNMENTS FOR Wells Fargo Salal Credit Union U.S. Bank South Sound Bank KeyBank Washington State Department of Transportation Union Bank Jefferson County Public Works Bank of America City of University Place Pacific Crest Trail Association Sawyer Family Partnership Timberland Bank University of Washington Kitsap Bank City of Lacey Umpqua Bank Columbia Bank First Citizens Bank City of Port Orchard Jon E. Cushman, Attorney at Law Washington Department of Natural Resources Laura Weselmann, Attorney at Law Puyallup Tribe of Indians Costco Wholesale Jefferson Land Trust City of Lakewood Vashon-Maury Island Land Trust Washington Federal Capitol Land Trust City of Tacoma Metropolitan Park District of Tacoma PARTIAL LIST OF WASHINGTON COUNTIES APPRAISED IN Clallam County Mason County Cowlitz County Pacific County Grays Harbor County Pierce County Jefferson County Skagit County King County Snohomish County Kitsap County Thurston County Kittitas County Whatcom County Lewis County Yakima County PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 46 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate QUALIFICATIONS ANTHONY V. JACKSON EDUCATION University of Colorado at Boulder Bachelor of Science in Business Administration with an emphasis in Finance REGISTRATION INFORMATION Washington State Certified General Real Estate Appraiser License Number 1102562 PROFESSIONAL EXPERIENCE SH&H Valuation and Consulting June 2016 to Present APPRAISAL EXPERIENCE INCLUDES Apartments Group Homes Proposed Retail Facilities Auto Dealerships I-502 Properties Proposed Storage Facilities Auto Service Industrial Land Proposed Multi-Family Car Washes Industrial Properties Recreational Land Churches Litigation Assignments Residential Land Commercial Land Medical Offices Restaurants Dental Offices Mixed Use Properties Retail Properties Eminent Domain Office Condominiums Schools Feasibility Studies Parking Lots Self-Storage Facilities Gas Stations Professional Offices Single-Family Residences Government Acquisitions Proposed Office Buildings Work-Release Facilities ASSISTED IN COMPLETION OF APPRAISAL ASSIGNMENTS FOR THE FOLLOWING CLIENTS Bank of the West First Federal Seattle Bank Banner Bank Forterra NW Sound Credit Union BOM Bank Harborstone Credit Union South Sound Bank Bristlecone Advisors Heritage Bank State Bank of Ceylon Citizens Bank of Newburg Key Bank Tierra Right of Way Svcs. City of Auburn Kitsap Bank Timberland Bank City of Kent Liberty Mutual Insurance Town of Eatonville City of Lacey Nisqually Land Trust Universal Field Services City of Mountlake Terrace Nisqually Tribe US Bank PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 47 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate QUALIFICATIONS City of Olympia O Bee Credit Union Washington Business Bank City of Poulsbo Olympia Federal Savings Wells Fargo Bank City of Sumner Pacific Continental WA Dept. of Natural Resources City of Tacoma Pacific Premier Bank WSDOT Coastal Community Bank Pierce Transit WSECU Columbia Bank Various Attorneys Commencement Bank Puget Sound Bank Various Private Individuals Epic Land Solutions Quinault Nation Various Private Estates First Citizens Bank Security State Bank APPRAISAL EXPERIENCE IN THE FOLLOWING WASHINGTON COUNTIES Clallam County King County Pierce County Cowlitz County Kitsap County Snohomish County Grays Harbor County Lewis County Thurston County Jefferson County Mason County PROFESSIONAL EDUCATION Appraisal of Fast Food Facilities Appraisal of Industrial and Flex Buildings Appraisal of Self-Storage Facilities Appraising Small Apartment Properties Basic Appraisal Principles Basic Appraisal Procedures Complex Properties: The Odd Side of Appraisal Commercial Appraiser Review Commercial Land Valuation Expert Witness for Commercial Appraisers General Appraiser Income Approach General Appraiser Market Analysis Highest and Best Use General Appraiser Sales Comparison Approach General Appraiser Site Valuation and Cost Approach General Report Writing & Case Studies Income Approach Case Studies for Commercial Appraisal Statistics, Modeling and Finance Supervisory Appraiser/Trainee Appraiser Course Understanding Luxury Home Features Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) Course Uniform Standards of Professional Appraisal Practice (USPAP) PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 48 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ASSUMPTIONS AND LIMITING CONDITIONS Unless noted otherwise in the body of the report, this appraisal is subject to the following assumptions and limiting conditions. 1. No responsibility is assumed for legal or title considerations. Title to the subject property is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is assumed to be under responsible ownership and competent management and is assumed available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that impact the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that impact the value of the property. 4. Information, public and private, relevant to sale price indications is assumed to be correct. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. Information, estimates and opinions contained in the report, obtained from others, including third-party sources, are assumed to be reliable and have not been independently verified and no warranty is given for accuracy. 7. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 8. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 9. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 10. When environmental impact studies are not provided in conjunction with the appraisal, we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 49 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ASSUMPTIONS AND LIMITING CONDITIONS 11. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 12. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 13. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 14. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 15. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 16. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 50 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ASSUMPTIONS AND LIMITING CONDITIONS 17. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 18. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 19. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 20. The current purchasing power of the dollar is the basis for the value stated herein. We have assumed that no extreme fluctuations in economic cycles will occur. 21. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. The Americans with Disabilities Act (ADA) became effective in the 1990s. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non-conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 51 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ASSUMPTIONS AND LIMITING CONDITIONS 22. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environmental hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 23. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 24. The appraisal report and the value conclusion within the appraisal is predicated upon the assumption that the satisfactory completion of construction, repairs or alterations will be performed in a workmanlike manner. 25. It is expressly acknowledged that in any action which may be brought against SH&H Valuation and Consulting, or their respective officers, owners, managers, directors, agents, subcontractors or employees (the "SH&H Valuation and Consulting Parties"), arising out of, relating to, or in any way pertaining to this engagement, the or consequential damages or losses, unless the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 52 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ASSUMPTIONS AND LIMITING CONDITIONS 26. SH&H Valuation and Consulting, an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 27. The conclusions contained in this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. SH&H Valuation and Consulting and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 28. Any prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 29. The value estimate herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 53 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate EXTRAORDINARY ASSUMPTIONS AND/OR HYPOTHETICAL CONDITIONS 1) Extraordinary Assumption: an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found 9 Extraordinary assumptions assume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no extraordinary assumptions relevant to this appraisal. 2) Hypothetical Condition: which is contrary to what is known by the appraiser to exist on the effective date of 10 the assignment results, but is used for the purpose of analysis. A hypothetical condition assumes conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no hypothetical conditions relevant to this appraisal. 9 Uniform Standards of Professional Appraisal Practice, 2024 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 4. 10 Ibid, p. 4. PROPOSED McCLELLAN STREET VACATION ADJACENT TO APNs 948319901 & 948319802 Page 54 SH&H File 16758-26 Barbro A. Hines, MAI, SRA Anthony V. Jackson, Associate ADDENDA 3609 Market Place West, Suite 201, University Place, WA 98466 p. 253.564.3230 | f. 253.564.3143 Agenda Bill AB26-114 Meeting Date: September 21, 2026 Agenda Item: X.C Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By:Dave Dinkuhn and Brian Reid Date Submitted:September 18, 2026 Department:Public Works Contact Phone:360-531-1535 SUBJECT:Resolution 26-018Declaring an Emergency, Waiving Public Bidding Requirements, and Ratifying the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Deteriorated Sanitary Sewer Along the Valley Trail Corridor Near 3105 Sage Lane CATEGORY:BUDGET IMPACT: ConsentResolutionExpenditure Amount:$200,000NTE 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:411 Water Sewer Fund -General SUMMARY STATEMENT: On September 16, 2026, City staff completed a CCTV inspection of the 18-inch concrete sanitary sewer between maintenance holes A12 and A11 along the Valley Trail corridor near 3105 Sage Lane. The inspection documented severe deterioration and extensive loss of concrete consistent with hydrogen sulfide corrosion. The deterioration has materially reduced the structural integrity of the sewer and presents an immediate risk of pipe failure or collapse. Failure could interrupt sanitary sewer conveyance and causea sanitary sewer overflow or release of untreated wastewater. Project vicinity map –sewer corridor west of Sage Lane between Albany Street and F Street. CCTV Photo – 18-inch concrete sanitary sewer between A11 and A12, September 16, 2026. The deteriorated segment is immediately downstream of the force main that runs through Port Townsend Golf Park. On September 17, 2026, Interim City Manager, Steve King determined the condition to be an emergency, allowing the City to immediately contract for the work without completing the normal public bidding process. Resolution 26-018 requests that the City Council declare an emergency and waive public bidding requirements for the emergency sewer work along the Valley Trail corridor near 3105 Sage Lane. City Council approval is required after the fact to formalize the Declaration of Emergency. The repair will require temporary sewer bypass pumping to maintain service while the deteriorated 18-inch concrete sewer is replaced with a new 18-inch PVC or HDPE sewer pipe. An initial budget estimate of $200,000 has been established. Staff will update the expenditure amount and budget impact when additional cost information is available. ATTACHMENTS: 1. Resolution 26-018 2. Memorandum to City Manager dated September 17, 2026 CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve Resolution 26-018 Declaring an Emergency, Waiving Public Bidding Requirements, and Ratifying the City Manager's Approval of all Applicable Documents to Allow for the Immediate Repair of Deteriorated Sanitary Sewer Along the Valley Trail Corridor Near 3105 Sage Lane. ALTERNATIVES: Take No ActionRefer to CommitteeRefer to StaffPostpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Resolution 26-018 RESOLUTION NO. 26-018 A RESOLUTION DECLARING AN EMERGENCY, WAIVING PUBLIC BIDDING REQUIREMENTS, AND RATIFYING THE CITY MANAGER'S APPROVAL OF ALL APPLICABLE DOCUMENTS TO ALLOW FOR THE IMMEDIATE REPAIR OF DAMAGE TO SEWER BENEATH VALLEY TRAIL NEAR 3105 SAGE LANE. WHEREAS, Section 3.46.090(E) of the City of Port Townsend Municipal Code (PTMC) and Section 39.04.280(1)(C) of the Revised Code of Washington (RCW) allow exemptions to competitive bidding requirements under emergency conditions; and WHEREAS, RCW 39.04.280(3) defines "emergency" as unforeseen circumstances beyond the city's control, that either presents a real, immediate threat to the proper performance of essential functions, or will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken; and th WHEREAS, on September 17, 2026, City staff conducted a closed-circuit television (CCTV) inspection of the 18-inch concrete sanitary sewer main between maintenance holes A12 and A11 beneathValley Trail near 3105 Sage Lane, downstream of the force main that runs through Port Townsend Golf Park, and observed severe deterioration and extensive loss of concrete throughout the pipe interior consistent with hydrogen sulfide corrosion; and WHEREAS, the severe deterioration has materially reduced the structural integrity of the 18- inch sewer and presents a real and immediate risk of pipe failure or collapse, which could interrupt sanitary sewer conveyance and cause a sanitary sewer overflow, release untreated wastewater, damage public or private property, and adversely affect public health and the environment; and WHEREAS, City staff determined that immediate action is necessary to establish and operate temporary sewer bypass pumping to maintain uninterrupted sanitary sewer service; excavate, remove, and replace the deteriorated 18-inch concrete sewer pipe segment; and th WHEREAS, on September 17, 2026, the City Manager determined that the condition described herein constitutes an emergency, as defined in RCW 39.04.280(3), based on the need to immediately contract for temporary sewer bypass and replacement of the deteriorated 18-inch sanitary sewer; and WHEREAS, PTMC Section 3.46.090(E)(3) requires the City Council to concur with the City Manager's declaration of emergency by passage of a resolution declaring the emergency, reciting the facts constituting the emergency, and waiving the public bidding requirements; and WHEREAS, for the reasons stated herein, the City Council finds that it is in the best interest of the City to declare an emergency, waive public bidding requirements for the public work to be undertaken, and authorize the execution of all necessary documents required to initiate repairs to the sewer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend, Washington, as follows: Section 1. The recitals above are hereby adopted by reference as the City's findings in support of the emergency declaration, as if fully set forth herein. Section 2.The City Council hereby declares an emergency justifying the waiver of certain contracting processes, including public bidding requirements. Resolution 26-018 Section 3. All prior actions taken in conformance with this resolution, including the actions of the City Manager and the Public Works Director, as described in the Memorandum dated September 17th, are hereby ratified and confirmed. Section 4. The City Manager may take any additional administrative actions consistent with this resolution. ADOPTED by the City Council of Port Townsend, Washington, at a regular meeting thereof, held this21stday of September 2026. ________________________________ Amy Howard Mayor Attest: ________________________________ Alyssa Rodrigues City Clerk 1.Enterprise Funds including Water Rates as emerging / active engagement topic (? + 2.Police & public safety budget including public defender costs as largest portion of General Fund (Tom + 3.Economic development including tourism as one economic driver for PT (Shelly + 4. the largest overall budget item (Cynthia +Austin + 5. 6. Streets funding including GF, grants, and TBD (Dave + 7. Parks and Library funding including GF and Library Levy (Michael, Keith + 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 CITY MEETINGS SCHEDULE (This schedule is draft only, subject to change. See City website www.cityofpt.us) Day Date Time Type of Meeting Tentative Agenda Item Location Absent nd Thurs Sept 17 12:30 Special Session Civil Service Commission 2 Floor Large Conf. Room Thurs Sept 17 3:00 Council Culture and Society Committee Chambers Joint meeting with Culture and Society Thurs Sept 17 3:30 Special Session Equity, Access, and Right Advisory Chambers Board Consent – Vinces Village Mon Sept 21 6:00 City Council Business Meeting Chambers Arbor Day Proclamation Proclamation Dolly Parton Day Dementia Friends Day Proclamation Officer Swearing in Budget: 2026 Capital Budget presentation – No Action Reimbursement Resolution – Sewer and Stormwater Bond Comp Plan Public Participation Plan Review ndnd 2 Supplemental – 2 reading Executive Session Tues Sept 22 4:30 Parks, Recreation, Trees and Trails Advisory Bd Chambers Wed Sept 23 2:00 Jefferson County Housing Fund Board Jeff Co Chambers Thurs Sept 24 6:30 Planning Commission Chambers Thurs Oct 1 3:00 Arts Commission Chambers Friends of the Library Proclamation Mon Oct 5 6:00 City Council Business Meeting Chambers Resilience Month Proclamation Evans Vista Developer Selection and authorize staff to negotiation development agreement in 2027 Budget: Preliminary unbalanced budget Public hearing – Emergency Moratorium (notice on 9/18) Department of Commerce Grant – HVAC and Elevator Budget: 2027 Capital Budget presentation – No Action Tues Oct 6 3:00 Historic Preservation Committee Chambers Wed Oct 7 3:00 Council Infrastructure and Development Committee Chambers nd Thurs Oct 8 12:30 Equity, Access, and Rights Advisory Bd 2 Floor Large Conf Room Thurs Oct 8 4:15 Civil Service Commission Chambers Thurs Oct 8 6:30 Planning Commission Chambers Mon Oct 12 3:00 Council Finance and Budget Committee Chambers CANCELED Mon Oct 12 6:30 City Council Workshop Meeting Chambers Indigenous Peoples’ Day Proclamation Mon Oct 12 6:30 Special Session City Council Workshop Meeting Blue Heron Budget Priorities – 2027 work plan Commons Tues Oct 13 1:00 Library Advisory Board Pink House Thurs Oct 15 3:00 Council Culture and Society Committee Chambers Food for All Day Proclamation Mon Oct 19 6:00 City Council Business Meeting Chambers Rotary Park –Special Presentation –Park revamp Kamal: 10-15 min – FBI Academy report-out – Confidence in policing st Budget: Public Hearing Property Tax Ordinance 1% - 1 reading – PUBLIC HEARING Budget: Go through budget options with council Capital Facilities Plan – workshop Water rates model presentation workshop Lease – Warming Shelter – Authorization Thurs Oct 22 6:30 Planning Commission Chambers Tues Oct 27 3:00 Climate Action Committee Pacific Room Jeff Co Public Health Tues Oct 27 4:30 Parks, Recreation, Trees and Trails Advisory Board Chambers Wed Oct 28 2:00 Jefferson County Housing Fund Board Jeff Co Chambers