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HomeMy WebLinkAbout05142001 Reg.CITY OF PORT TOWNSEND MINUTES OF THE REGULAR SESSION OF MAY 14, 2001 The City Council of the City of Port Townsend met in regular session this fourteenth day of May, 2001, at 6:30 p.m. in the Port Townsend Council Chambers of City Hall, Mayor Geoff Masci presiding. ROLL CALL AND PLEDGE OF ALLEGIANCE Councilmembers present at roll call were Allen Frank, Vern Garrison, Geoff Masci, Syd Lipton, Bill Wolcott and Alan Youse. Joe Finnie was excused. Staff members present were City Manager David Timmons, City Attorney John Watts and City Clerk Pam Kolacy. CHANGES TO THE AGENDA Motion: Mr. Lipton moved to defer item 9(B) (System Development Charges) to the June 4 meeting and expressed a desire that the issue be remanded to the Public Works Committee. Mr. Youse seconded. The motion failed 4-2 by voice vote, with Mr. Lipton and Mr. Masci in favor. RESIDING OFFICER'S REPORT Lee Wolodkewitsch, Arts Commission Chair, and Commission member Sy Kahn were present. Mr. Wolodkewitsch reported that the Arts Commission has discussed the issue of whether or not they desire to remain a city advisory board rather than a non-profit agency. He noted there were pros and cons to each but the commission's recommendation is that the Arts Commission remain a city advisory committee. Motion: Mr. Frank moved to retain the current structure of the Arts Commission and direct staff to bring forward an establishing resolution at the next meeting. Mr. Vgolcott seconded. The motion carried unanimously, 6-0, by voice vote. PRESIDING OFFICER'S REPORT Mr. Masci noted that correspondence had been received from Nora Porter, Larry Browning, and Laura Blake, regarding items on the agenda (Sims Way parking). The mayor read the following proclamations: Declaring May 13 to be "Police Week" Declaring the week of May 13 to be "National Historic Preservation Week" Honoring the Port Townsend High School Soccer Team Mr. Masci announced his appointments to the following citizen advisory boards and committees: City Council Meeting Minutes Page 1 May 14, 2001 Historic Preservation Committee 1. Vernon Leckman 2. Della Walker 3. Charles Arthur 4. Sebastian Eggert 5. Richard Berg 6. Ken McBride 7. Edel Sokol Park and Recreation Advisory Board 1. Barbara McColgan Pastore 2. Victoria McKinnon 3. Jim Farmer 4. Debbie Berreth 5. Ken Schordine 6. Tim Caldwell 7. Lyn Hersey Nonmotorized Transportation Advisory Board 1. Scott Walker 2. David McCulloch 3. Dana Roberts 4. Liesl Slabaugh 5. Peter Lauritzen 6. David Sheehan 7. Melinda Bower Arts Commission 1. Eligius Wolodkewitsch 2. Miriam Lansdon 3. Sy Kahn 4. Sheila Smith 5. Arthur Reitsch 6. Barbara McLean 7. Nancy Stevenson 8. Patricia Spaeth 9. Don White City Council Meeting Minutes Page 2 May 14, 2001 Motion: Mr. Frank moved to confirm the mayor's appointments. Mr. Garrison seconded The motion carried unanimously, 6-0, by voice vote. CITY MANAGER'S REPORT Mr. Timmons announced that a letter of intent in regard to siting a skateboard park at the current location of the tennis courts at Mountain View School will be forthcoming from the School Superintendent, as authorized by the School Board. When a letter of intent is signed by both parties, it will allow a more detailed exploration and analysis of the issues related to the project. City Attorney John Watts replied to a question posed by a citizen at the last meeting regarding the meeting on April 25 which was attended by Public Utility District Commissioners and City Council Members. He noted that the Open Meetings Act required notice as a city council meeting in case four members attended. Since only three attended it was not an official meeting of the council; however there was no violation of the Act as the Act does not prohibit three members from meeting with one another or with other governments to discuss city business. PUBLIC COMMENT Glenn Norcross: advocated civility and productivity by all parties; urged that everyone address issues, not character. He stated that Port Townsend is a great town with tremendous potential, and he hope a lot of time is not spent fighting among ourselves. Dick Shipman: chairperson of the Rhododendron Festival, reminded all of the festivities going on during Rhody Week and presented the mayor with a festival t-shirt. He thanked the city and the Lodging Tax Advisory Committee for their support. Nancy Dorgan: stated that she has not been reappointed as a member of the Nonmotorized Transportation Committee and said the council rules address removal of members from committees in terms of being in the best interests of the city; if that is the case she would like a written determination. She praised the committee and members and stated that she believes the newly appointed members will be excellent.. John Lockwood: stated Nancy Dorgan has been the best informed and most knowledgeable person on the Nonmotorized Committee and it would be tragic to lose her. He also mirrored Mr. Norcross's comments. CONSENT AGENDA Motion: Mr. Wolcott moved to approve the following items on the consent agenda. Mr. Frank seconded The motion carried unanimously, 6-0 by voice vote. Minutes: Business meeting of May 7 (with correction of typographical error) City Council Meeting Minutes Page 3 May 14, 2001 UNFINISHED BUSINESS CERTIFIED LOCAL GOVERNMENT (WORKSHOP) Planner John McDonagh noted that the chief goal of proposed amendments to the municipal code is to qualify Port Townsend as a Certified Local Government with the Naitonal Park Service. The status would allow the city to apply for certain historic preservation grants that would be otherwise unavailable (typically used for education and promotional efforts rather than capital or construction related expenditures). A second aspect of the proposed amendments would involve expansion of the Special Valuation for Improvements to Historic Properties program. Special valuation already exists in Port Townsend but is limited to properties on the National Register within the C- III Historic Commercial zoning district. Megan Kelly of the Washington State Office of Archeology and Historic Preservation was also present to answer questions. Public Comment None Council discussion Mr. Frank expressed a philosophical opposition to any tax shift, Mr. Wolcott asked it this would provide a tax break for the rich. Ms. Kelly replied that special valuation requires a substantial rehabilitation. In order to qualify for a tax advantage, the value of the rehabilitation has to equal 25% of the value of the structure. She added that people of all incomes have a desire to improve their property; most would not choose to make their property subject to design review unless there were a monetary benefit. The Historic Preservation Committee can then help guide property owners to do the right thing for the building in terms of historic preservation. Regarding special valuation, it was explained that it is up to the local government to determine which properties would be eligible; for example, it could avoid adding any to residential zoning districts, but could add special valuation to industrial and marine zones and commercial properties that wouldn't be eligible for the national register but could be on the local register. Mr. Timmons noted the issues can be divided; adoption of Certified Local Government status could be separate from the special valuation issue. City Council Meeting Minutes Page 4 May 14, 2001 The issue of special valuation could be expanded by hearing from the county auditor and from comparable cities who have initiated such programs (Ms. Kelley recommended OlympiaJThurston County). It was also suggested that local people who have taken advantage of special valuation might be contact for information. Consensus was to direct the staff to bring forward the amendments that would qualify Port Townsend as a Certified Local Government to the second business meeting in June (June 18) and to schedule a study session on expansion of special valuation on July 9, contingent upon the availability of County Assessor Jack Westerman. SYSTEM DEVELOPMENT CHARGES Mr. Timmons stated that the Community Development Committee on March 27, moved to recommend to the full council an ordinance that would allow System Development Charges (SDCs) to be directly deductible from the cost of developing infrastructure (water and sewer) required to be developed as a condition of construction of up to three single family residences. He reviewed the extensive staff memo provided in the council packet. He also discussed the utlity fund as a pie concept, divided into several parts, one of which is for future growth. SDCs don't cover the total cost of growth; the Comprehensive Plan policy document and the Water Plan are the enabling authorities. The city is required to show the relationship of revenues collected for growth to the capital development plan. Money must spent within a six year period, and there is a high accountability factor. The direction of the committee was to look at the enabling ordinance to get to a point of providing for the credit concept. Mr. Timmons added that he has located a city in Oregon with a credit system similar to the staff's current recommendation. He recommended evaluating the general system concept contained in the Water Plan; go back and establish the enabling authority to establish such an ordinance. He characterized this as an incentive tool, which can be very effective if managed correctly. He reiterated that on the surface the subject seems simple, but it becomes very complex when looking into the enabling authority, policies, etc. In addition, requirements and obligations for debt must be analyzed. Mr. Masci then noted that staff has acted on a committee motion before the recommendation came to the full council. Mr. Timmons added that the low income deferral provision results in a punitive rate of interest charged. Customers would have a greater financial benefit if they borrowed the money to pay the charges. City Council Meeting Minutes Page .5 May 14, 2001 Discussion included revaluation of the latecomer agreement option, whether charging interest would encourage builders to develop properties sooner, the difference between "affordable" and "low income," and the difference between "impact fees" and "system development charges." Public Cormment Nancy Dorgan: cited the lack of mention of affordable housing in connection with the proposed motions. Asked that no action be taken on this proposal. Sandra Stowell: spoke in support of system development charges; sees no basis for a credit system. Michael Pruitt: impact fees seem fair; others should not have to pay so some can receive a deferral. Asked that an ad hoc committee of community members be formed to discuss the issue. Jeff Kelety: supports system development charges as a fair and reasonable portion of the cost of running the town; reasonable for development to pair its fair share. Distributed written comments. He asked that Mr. Garrison, as a developer, recuse himself from any discussion of the issue. John Lockwood: stated that revenue lost from system development charges will be paid through increased taxes and utility rates. Stated that affordable housing is not mentioned nor is any provision made to foster it. Frieda Fenn: encouraged creation of an impact fee citizens advisory committee under guidelines of the Growth Management Act, with findings to be presented at a town hall meeting. Currently taxpayers are subsidizing each new house by about $10,000; it is likely that system development charges should be raised rather than lowered. Jim Todd: supports position of People for a Liveable Community as expressed by previous speakers. Richard Berg: supports PLC proposal to reconvene a balanced committee of citizens to discuss impact fees and let representatives of the environmental and development communities review the full impact of fee structures, then come up with a comprehensive proposal. Ame Hansen: stated that the SDCs if eliminated for developers, would be borne by the general public. He urged the council to take no action on the proposed changes. Doug Millholland: as a developer, stated that the cost is passed on to property owner. He added that the developers of Rosewind paid into the coffers, but understand that the sewer plan, a capital project, had to be paid for as well as individual sewer lines. His preference would be to continue to allow newcomers to pick up the burden of these fees. City Council Meeting Minutes Page 6 May 14, 2001 He thanked the council for bringing the issue forward with the initial impulse to honor the need for affordable housing in the city. He stated this is a good opportunity to look at the big picture. Michelle Sandoval: stated that the realty community has expressed the sentiment that SDCs should not be eliminated and in fact may be too low although there is support for a sliding scale; added it is important to have a historical perspective. She added that affordable housing, system development charges, and infrastructure issues are complex with no easy fixes. She asked that someone contact her so that she can pursue these comments further and share written information from the realtor group. Tony Goldenberg: supported deferring impact fees and reducing interest on deferred fees to the legal low. Council deliberation Mr. Lipton stated that staff should do further analysis and get decent numbers; he added that the Public Works Committee will meet on the 12th and he would like that committee to begin examining the figures. Mr. Wolcott added that although many are urging the council not to eliminate SDCs, getting rid of all SDCs has never been proposed by the council. Motion: Mr. Wolcott moved that the council as a whole consider the issue of direct deduction of System Development Charges from the cost of developing water and sewer infrastructure required to be developed as a condition of construction of up to three single family residences and instruct staff to research and make recommendations on the issue. Mr. Garrison seconded The motion carried unanimously, 6-0, by voice vote. Motion: Mr. Garrison moved that the City Manager be tasked to bring forward an ordinance eliminating the interest charge from low income System Development deferrals to the June 4 council meeting. Mr. Garrison seconded Vote: the motion carried unanimously, 6-0, by voice vote. Motion: Mr. Frank moved to remand the SDC issue to the Public Works Committee on June 12 and then docket for continued discussion and possible action at the June 18 council meeting. The motion carried unanimously, 6-0, by voice vote. TRI-AREA WATER SYSTEM TRANSFER Mr. Timmons introduced the issue and noted that the joint Finance and Public Works Committees have recommended to the full council that the council move forward on the sale/transfer of the Tri-Area Water System to Public Utility District # 1 on the terms outlined in the draft letter of intent, with the City Manager authorized to execute the letter of intent on behalf of the city. City Council Meeting Minutes Page 7 May 14, 2001 Public Comment: Nancy Dorgan: read comments from the PUD/City Council work session into the record, and asked to put the transaction on hold. Dick Shipman: PUD Commissioner Underscored the fact that the federal grant application would go toward improving infrastructure and consolidation costs, not acquisition - emphasized the importance of the established timeline in relation to funding. Urged the council to initiate the process tonight which will start the 90-day due diligence process. Guy Rudolph: believes the transaction would be good for the city but not necessarily for the Tri-Area citizens. Reviewed attempted incorporation process with the county; noted that an organizing committee is again asking commissioners to discuss a sub-area. Jay Levine: Noted he lives in Gardner, where the first water system was developed under the PUD. He asked that the city and PUD assure that Tri-Area citizens are getting a system that is certified to be safe by the state and county health departments and that citizens are not getting a system that will be antiquated once the deal is made. He. asked that written statements from both health departments be received during the due diligence period. Motion: Mr. Garrison moved to accept the recommendation of the Finance and Public Works Committees that the city continue to move forward on the sale~transfer of the Tri- Area water system with the Public Utility District #1 on the terms outlined in the draft letter of intent, which the City Manager is authorized to execute on behalf of the city. Mr. Frank seconded Mr. Lipton asked about terms of withdrawal from the deal once the letter of intent is signed. Mr. Watts stated that the agreement will go forward unless information comes to light in terms of major problems or new information or different analysis. This is legally implied in the form of a due diligence period. Amendment: Mr. Lipton posed a friendly amendment to the letter which adds language that the change will proceed to closing on the terms of the letter of intent unless within the due diligence period there is deleterious information that comes to light. The amendment was accepted. Vote: the motion as amended carried unanimously, 6-0, by voice vote. City Council Meeting Minutes Page 8 May 14, 2001 NEW BUSINESS RESOLUTION 01-023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON TO ESTABLISH A NO PARKING ZONE ON SR20 FROM KEARNEY STREET TO THE FERRY TERMINAL Mr. Timmons introduced the issue, noting that the council directed staff to bring forward the resolution at the study session on April 9, 2001. Public comment: Nancy Dorgan: parking should yield to safety concerns. Please establish safe bike zone to town David McCulloch: reminded council of public hearing where the clear majority asked for access for bicyclists to the downtown area and elimination of parking. He stated this is a safety issue for bicyclists, pedestrians and motorists. Asked council not to delay action and to adopt the resolution tonight as there has been extensive study and discussion already. Linda Carson: fully supports establishing the no parking zone. Urges adoption. Laura Blake: stated the change would impact the Bayview Restaurant's business. She thought a compromise had been reached earlier but the dialogue stopped when funding for the project was cut. Asked if the other sidewalk could be used for pedestrians or if cyclists could use the sidewalks. She wishes she would have been contacted again after the initial meeting with the Department of Transportation and project manager. Carol Ann Modena: read remarks from Dana Roberts into the record and provided written comments in support of removing parking from SR 20. He that that the route is arguably used by more cyclists than any other route in town. Urged council to adopt the resolution. Michael Pruitt: expressed sympathy with restaurant owners but could not offer any other solution than removing parking for the safety of bicycle traffic and in the interest of making downtown accessible to bicycles. Sandra Stowell: stated that the parking is hazardous and should never have been allowed. Urged passage of the resolution. Jeff Kelety: favors a compromise that would make it safer for kids. City Council Meeting Minutes Page 9 May 14, 2001 Peter Lauritzen: many avoid riding bicycles there because of safety issues; asked that the street be made more open for bike traffic. Guy Rudolph: stated he can't understand why anyone is worried over that little bit of parking. Mr. Frank stated a concern about selectivity; why look at this particular area and not all the parking in downtown Port Townsend. Mr. Timmons noted this situation is unique, with the bluff edge on one side and the water on the other. He added the area is currently not properly marked or signed, and if parking is allowed, it will be severely limited by proper signing. He added that the sidewalks are not ADA compliant; it would be possible to look on the bluff side but it would be very expensive to deal with slope stability issues. Motion: Mr. Garrison moved for adoption of Resolution 01-023. Mr. Youse seconded. Mr. Lipton brought up the issue of ferry parking. Mr. Timmons noted that if parking were eliminated, it would mean one less officer would need to be present to direct ferry traffic. Chief Anderson concurred with this statement. Vote: The motion failed, 3-3, by voice vote with Mr. Lipton, Frank and Masci opposed and Mr. Garrison, Wolcott and Youse in favor. Mr. Frank added that he felt further discussion was needed. Mr. Masci stated the discussion could be taken up again at the June 4 meeting. EXECUTIVE SESSION There were no items for executive session. ADJOURN There being no further business, the meeting was adjourned at 11:10 p.m. Attest: Pamela Kolacy, CMC City Clerk City Council Meeting Minutes Page 10 May 14, 2001