Loading...
HomeMy WebLinkAbout051710CITY OF PORT TOWNSEND MINUTES OF THE BUSINESS MEETING OF MAY 17, 2010 CALL TO ORDER AND PLEDGE OF ALLEGIANCE ROLL CALL Councilmembers present at roll call were David King, Laurie Medlicott, Kris Nelson, George Randels, Catharine Robinson, Michelle Sandoval, and Mark Welch. Staff members present were City Manager David Timmons, City Attorney John Watts, Public Works Director Ken Clow, Library Director Theresa Percy, and City Clerk Pam Kolacy . CHANGES TO THE AGENDA There were no changes proposed to the agenda. SPECIAL PRESENTATION(S): COMMENTS FROM THE PUBLIC Public comment The following people commented on recent enforcement letters which were sent to the owners of illegal transient accommodation units in the city. Barbara Morey spoke in favor of allowing transient accommodations that are currently unlawful. Kate Williams concurred. Gerald Kania concurred. Heidi Morgan spoke in favor of transient accommodations being licensed. Tim Stover spoke in favor of enforcement and continuation of current regulations. He noted that these illegal accommodations do not contribute to the city in terms of promotion, taxes or license fees. Mary Ann DeLong stated that hotels, motels, and bed and breakfasts have to meet many regulations to operate and it is unfair that illegal accommodations are operating without having any of the burdens of legal accommodations. Paul Richmond expressed concern that these businesses have been operating with the knowledge of the city for some time; he also expressed concern that enforcing the law at this time may be considered a "taking" of property. City Council Business Meeting May 17, 2010 Page 1 of 9 Rob Iverson stated that transient accommodation owners who live in their homes do wish to keep their neighborhoods quiet and preserve their residential character. He noted that in regard to ADUs being designated for affordable housing, the owners of some homes need the rental income to make their own homes affordable. Jana Allen stated that legitimate vacation rentals are negatively impacted by illegal accommodations. She added it is unfair to let them operate without appropriate regulation and taxes. Patti Mulroney stated her transient accommodation is booked through August and if she has to cancel, the visitors will be unhappy and will not come to Port Townsend. Cynthia Alvarez stated she was contemplating offering her home as a transient accommodation and would like resolution of the issue. Sherry Kack spoke in favor of allowing transient accommodations. City staff response Mr. Timmons noted that this issue has come up many times and Council has not chosen to adopt changes to the regulations. Some owners have participated in prior discussions and chosen not to abide by the law. From the City's point of view there is no "taking" and if someone is injured while staying at an unlicensed facility the City could be exposed to liability if staff has not enforced existing regulations. He noted this is a commercial use of property and compliance with commercial, rather than residential standards is required. DSD Director Rick Sepler stated that the City does not practice selective enforcement but does follow through on issues that are brought to our attention. He added that the City has added staff now so that there are more resources to provide proactive enforcement. He described the recent process whereby owners of illegal units were notified. He said the transient accommodation laws are well documented as to regulatory intent and were adopted specifically to encourage affordable housing. Mr. Randels noted that when he was chair, the Planning Commission voted unanimously to uphold the rules in place during the last discussion of this matter. Commissioners heard significant testimony regarding neighborhood disruption by these units. He added that residential zoning is designed to separate residential from commercial uses with the attendant noise and traffic. He is now chair of the Lodging Tax Advisory Committee and that group has decided to take an informal look at alternative types of accommodations in the context of the zoning ordinance. Any recommendations on changes to the regulations will come forvvard from LTAC and then to Council. City Council Business Meeting May 17, 2010 Page 2 of 9 Ms. Nelson said the City may be overlooking an accommodation type that doesn't directly affect the code at this time or the specific issue before us. She supports the review by the LTAC subcommittee to see if the City can take advantage of a new trend in accommodation type. She cautioned that any change to the regulations would be processed thoroughly so changes would take some time. Ms. Nelson stated she would. like to find a way to have a longer grace period than one month, particularly at this time of year. Mr. Welch stated that an important point to keep in mind is that there is nothing in the current law which precludes people from making money from renting their property as long as they rent for 30 days or more. He said that data is missing such as whether the City really is short of beds for visitors. He added that it changes the character of the community drastically if residents are allowed to leave town and rent out their homes. He stated he is not averse to looking at different modes of accommodations but wants data regarding the need for such an expansion in order to protect businesses that have worked hard within regulations. Mr. King said that he agrees with Mr. Welch and noted there is a need to run businesses legally and safely. He added that he can't favor extension of a grace period as it is too dangerous, too cumbersome and hard to manage. He encouraged the activity of the LTAC committee to look at ways of codfying different types of accommodations for visitors. Ms. Robinson stated that it is possible to rent to visitors within the law for some situations. She said the regulations have been reviewed many times and she does not support any changes until more information is available. She also supports the work of LTAC. Mrs. Medlicott stated she is reluctant to believe all those who testified did not know they were doing something illegal and is hesitant to support any sort of stay. She is in favor of the LTAC subcommittee project. She also believes this is a bad time of year to ask that owners cease and desist their operations. She is not in favor of temporary licenses or stays but thinks it would be reasonable to extend the grace period until August. Ms. Sandoval addressed the issue of Fort Worden being booked a year ahead, noting that the reason is they are accommodating their workshops, not because they are always full. She referenced the Aldrich's fire and stated that there were two illegal accommodations upstairs in the building and since they were illegal, the Fire Department did not know that and had to risk their lives to find out what was upstairs. She agreed that the city has extremely liberal ADU and home- based business codes. We have tried to give as much flexibility as possible. Regarding the LTAC subcommittee, she believes that if indeed we are missing a niche that should be explored. She said she lived in a community where all the houses were rented and it is not a pleasant place to live. First and foremost this City Council Business Meeting May 17, 2010 Page 3 of 9 is a community, although we welcome tourists. Regarding suspending enforcement, she feels sympathy regarding commitments but it would overload staff trying to get out temporary licenses. She is in favor of enforcement because it is fair to those who have gone through the process to get a lawful business up and running. She added we need real, not anecdotal, information. It will take time but she feels enforcement should proceed. Ms. Medlioott suggested delaying enforcement until July 1. Mr. Randels stated he believes the City needs to proceed with enforcement. Ms. Nelson stated she believes the City should phase in enforcement as August and September are the height of the season. Mr. King is sympathetic to the effect on visitors but repeated that he is in favor of continuing enforcement for all reasons stated previously. Mr. Welch stated that the surprise is apparently that we are enforoing a law that has been on the books a long time. He said that if we were to act quickly we would hear from all the people who have spoken about not wanting any businesses in neighborhoods. He agreed that all efforts should be made by organizations such as the Chamber to make sure people who are displaced know there are other options for accommodations. Ms. Robinson said if it were a new law she would be more sympathetic as to the start date of enforcement. She is in favor of enforcement. Ms. Sandoval stated that it is clear that a majority of Council members are in favor of enforcing the law so no action is necessary at this time and staff can move forward. There was no further discussion. Barbara Morey spoke again, stating that the owners wish to be legal but they are unable to be legal according to the code. CONSENT AGENDA Motion: Catharine Robinson moved to approve the following items on the Consent Agenda: Bills, Claims and Warrants Vouchers 111000 through 111143 (plus EFTS) in the amount of $776, 895.79 and Vouchers 111148 through 111420 (plus EFTs) in the amount of $1, 574,608.10; Resolution 10.012, Authorizing Community Redevelopment Block Grant Loan to Water Street Holding Company (Marion Lodwick); Resolution 10-013, Adopting Jefferson County -City of Port Townsend Natural Disaster Hazard Mitigation Plan (Revised 2009); Resolution 10-014, Approving the Action of the State of Washington Economic Development Finance Authority and the Issuance of Non-recourse Revenue Bonds City Council Business Meeting May 17, 2010 Page 4 of 9 to Finance an Economic Development Facility for Tacoma Goodwill Industries ('Yhe Company"), and Providing for other Matters Properly Relating Thereto; Referral of Public Memorial Policy to Community Development and Land Use Committee for Review and Recommendation; Resolution 10-015, Repealing Resolution 07-004 Providing for Copying Charges for Public Records and Authorizing the City Clerk/Public Records Office to Establish Copying Charges for Public Records Consistent with Applicable State Laws; Approval of Volunteer Advisory Board Appointments to Arts Commission, Design Review Advisory Commitfee, Historic Preservation Committee, Library Advisory Board, Lodging Tax Advisory Committee, Non-Motorized Transportation Advisory Board and Planning Commission as specified in Agenda Bill 10-053; Approve contract with Gerard Tsutakawa to provide original artwork Salish Sea Circle with specific terms as specified in Agenda Bill Laurie Medlicott seconded. Vote: motion carried unanimously, 7-0 by voice vote. PUBLIC HEARING(S): No public hearings were scheduled. UNFINISHED BUSINESS There were no items of Unfinished Business. NEW BUSINESS Resolution 10-016, Giving Direction to Proceed with Development Plans and Finance Options for Phase I and Phase II of the Library Project Mr. Timmons reviewed the packet material. He stated that staff is looking for approval of the Library expansion plan concept and direction from the Council about advancing the project to the design development phase. He noted there are alternate pathways for the project so that seismic retrofit can be done even if the project timeline is moved back. This will allow the City to use FEMA funding which has been awarded for the seismic retrofit. Public Works Director Ken Clow and Architect Jim Cary presented a detailed presentation of the work to date. Mr. Randels stated that it appears that the FEMA deadline is the tail wagging the dog. It would not be rational to proceed with Phase I without coordinating with Phase II. He urged staff to determine whether an extension to the FEMA contract is feasible. Mr. King asked if the retrofit budget includes all costs for the restoration of the Carnegie Library. Mr. Cary stated it includes much of the work, but not the full restoration. Mr. Cary also noted that when Phase I is done, the Library would be returned to a state that could be occupied but there would be no expanded City Council Business Meeting May 17, 2010 Page 5 of 9 facility. Mr. Clow noted that a location has not been identified for housing the Library while the construction is going on. He also stated that the current budget does not include having the Library operation move in and out twice. Mr. Cary stated about 6,500 square feet of temporary space will be needed to house the current library in a temporary facility. Library Director Theresa Percy reviewed plans for fundraising and revenue, noting that it has always been planned as a public and private partnership. Bill Maxwell, Chair of the Library Advisory Board, spoke about the many services the Port Townsend Library provides and asked for support of the library expansion project. Charlie Moore, Chair of the Port Townsend Library Foundation, outlined the Foundation's fundraising plan. There was no public comment. Mr. Timmons stated that the project is still in design development and a more fine tuned version will be presented to the Council in December. Ms. Robinson asked about the timeline for local bonding, either voted or councilmanic. Mr. Timmons estimated that would be in early 2012. In response to Mr. King, Mr. Timmons noted that the City would be committing to the fundraising effort at this time, but not committing more than $500,000 of City funds. Further decisions will be made in December. Motion: Catharine Robinson moved to approve Resolution 70-016, Giving Direcfion to Proceed with Development Plans and Finance Options for Phase 1 and Phase Il of the Library Project David King seconded. Vote: motion carried unanimously, 7-0 by voice vote. FCS Contract Amendment -- Waste Water Utility Revenue Analysis Mr. Timmons reviewed the packet material, noting that staff recommends that the FCS group move forward to update the City's wastewater utility revenue forecast and develop a rate design. He noted that the debt on the wastewater plant will be paid off in two years. Analyzing the rates of both water and sewer will give us better information to use during the decision on method of secondary disinfection. There was no public comment. Mr. Timmons stated that funds have been appropriated in the budget for this City Council Business Meeting May 17, 2010 Page 6 of 9 expenditure. Motion: George Randels moved to authorize the city n-tanager ro execute a contract with FCS Group for a wastewater utility revenue forecast and to develop a rate design at a cost not to exceed $31,000. Kris Nelson seconded. Vote: motion carried unanimously, 7-0 by voice vote. Mayor Sandoval recessed the meeting at 8:55 p.m. for the purpose of a break. The meeting was reconvened at 9:10 p.m. Fire Service: Resolution 10-017, General Fund Levy Lid Lift Mr. Timmons reviewed the packet material, noting that staff has been working with the County Assessor's office as well as a legal consultant to craft the language for a ballot proposition for a general fund levy lift to be dedicated to fire services. The goal of the levy is first to obtain parity between the city and fire district. Mr. Randels noted that the period in paragraph 2.4, fourth line (after "only") should be removed. Mr. Welch stated that the immediate result is an increase of 43 cents to achieve parity. The other capacity of 57 cents would be banked until further action by the Council. Public Comment James Robinson, Jefferson County Leader asked what the effect would be if the measure fails. Mr. Timmons stated the discussion would be looking at other options and under the current interlocal, entering into negotiations with the Fire District to see what the Citys liability will be. It could also involve going back to the voters with another plan. The contract does not itself state parity but it comes out in the intent of the contract. It could take many forms, parity is defined in terms of balancing equities. The agreement was made with the intention of an equal tax burden on voters of the City and the District. Motion: George Randels moved to approve new version A of Resolution 10-017 placing a general fund lid lift on the August 17, 2010 ballot that would increase the City levy rate to aqua! a Levy rate of $1.00/$1,000 assessed value for fire services - to match the fire district levy increase approved in May 2010 that increased the fire district rate to $1.00 with correction to remove the "and"from "East Jefferson Fire and Rescue"and removing the period from paragraph 2.4). Mark Welch seconded. Vote: motion carried unanimously, 7-0 by voice vote. City Council Business Meeting May 17, 2010 Page 7 of 9 Motion: Mark Welch moved request the joint oversight board to review and make a recommendation whether to proceed with annexation or formation of a regional fire authority, and to report back to the City Council and District Commission in no more than two months. Kris Nelson seconded. Vote: motion carried unanimously, 7-0 by voice vote. CITY MANAGER'S REPORT Employment Agreement Addendum (Pension Amendment) Mr. Timmons reviewed the packet material, noting the item would allow the City Manager alternative choices in pension investment. There was no public comment. Motion: David King moved to approve Employment Agreement Addendum as outlined in the Agenda Bill. Mark Welch seconded. Vote: motion carried unanimously, 7-0 by voice vote. Mr. Timmons stated the current franchise with Puget Sound Energy (PSE) is scheduled to expire this year. A related issue has come up involving the fact that PSE is required by state tariff requirements to pay 60% of the costs for undergrounding utilities. PSE's position is that without a franchise, they are not required to provide the 60%. It would not be in the City's best interest to let the franchise expire. He suggested that the matter of the Puget Sound Energy Franchise expiration be referred to either the Special Projects or Finance Committee. Motion: Catharine Robinson moved to refer the issue of Puget Sound Energy franchise negotiations to the Special Projects Committee. David King seconded. Vote: motion carried unanimously, 7-0 by voice vote. OFFICER'S REPORT Main Street stage conference on Wed. STANDING COMMITTEE REPORTS SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING ANDIOR STUDY SESSION COMMENTS FROM COUNCIL EXECUTIVE SESSION ADJOURN City Council Business Meeting May 17, 2010 Page 8 of 9 There being no further business, the meeting adjourned at 9:53 p.m. Attest: Pamela Kolacy, City Clerk ~~~ MMC City Council Business Meeting May 17, 2010 Page 9 of 9