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04/16/2024 - Work Study - MinutesDocuSign Envelope ID: A07E8730-561 C-41B24-A71 D-ABCFC54F578B City of Port Orchard IP-QM Council Meeting Minutes ORCHARD ® Work Study Session of April 16, 2024 1. CALL TO ORDER AND ROLL CALL Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the City Clerk as follows: Mayor Pro-Tem Chang Present Councilmember Diener Present Councilmember Fenton Present Councilmember Morrissey Present Councilmember Rosapepe Absent Councilmember Trenary Present Councilmember Worden Present Mayor Putaansuu Present Staff present: Community Development Director Bond, City Clerk Wallace, and Deputy City Clerk Floyd. Staff present via Zoom: City Attorney Archer. The meeting streamed live on the City's YouTube channel. A. PLEDGE OF ALLEGIANCE (Time Stamp 00:33) Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. DISCUSSION ITEMS A. POMC 5.60 Fireworks (Time Stamp: 00:53) Mayor Putaansuu noted Councilmember Rosapepe requested this discussion but he had an emergency this evening and asked that this be moved to the May work study meeting. Council direction: No direction was given to staff. B. Storm Drainage Rate and Capital Facility Charges (Time Stamp 01:50) City Attorney Archer noted before the Council this evening is an ordinance which takes several different actions. DocuSign Envelope ID: A07E8730-561 C-41B24-A71 D-ABCFC54F578B In 2023, Council adopted the 2023 Stormwater and Watersheds Comprehensive Plan following a multi -year collaborative effort to evaluate the City's stormwater drainage system and its impact on the community. Concurrently with the development of the Comprehensive Plan, the City commissioned a rate study to evaluate the City's existing monthly base rate for storm drainage, as well as the need for a capital facility charge to fund the construction of additional facilities to support growth. Council then adopted Ordinance No. 038-23, which adopted a capital facility charge (CFC), as well as updated the base charge into the future, based on the evaluated needs set forth in the rate study. The Ordinance set an effective date of April 1, 2024, for the implementation of the updated base rate and the capital facilities charge. Following adoption and in preparing to implement the ordinance, staff identified three issues for remediation prior to implementation; 1) the title which adopted the Capital Facility Charge referenced the wrong chapter. The title referenced POMC 13.04 but should have references POMC 13.06. To remedy this confusion, staff propose to repeal and replace POMC 13.06.160 and Section 4 of Ordinance No. 038-23 and re -adopt the language in the correct location POMC 13.06.160; 2) to remove the reference to an inspection fee and procedures for inspections that occur at the time the capital facility charge is paid. The inspection fee is referenced in 13.06.150 and 13.06.160. Staff determined the inspection as referenced in this chapter and associated fee, were not necessary because the inspections occur as a component of existing permitting; and 3) the storm water base rate charge, and the CFC, are based upon an "Impervious surface unit (ISU)" is a measurement utilized that is a reflection of the number of square feet of impervious ground cover present in a particular parcel. Impervious surfaces is what matters when measuring stormwater impacts from the amount of drainage. The City measures the number of ISU's a parcel has in order to determine what their rate is, both for the CFC rate and the base rate. When staff went to implement the Council's direction, which was to base a CFC on one ISU being one particular rate. The definition of how we determine what a ISU was, needed clarification in orderto ensure that duplexes, triplexes, and single- family homes with ADU's were paying their fair share based on their actual impervious surface charges. Previously, they were paying based on the number of dwelling units that were present, as opposed to their ISU count. Modifications are being proposed to the structure of the base rate so a single-family residential is determined to be one ISU as a matter of policy, which is very typical across public agencies. An ISU is defined as 3,000 square feet in the City. A single-family residential is one ISU, and any other use, whether it's a duplex, triplex, multifamily or commercial use, will be measured based on its impervious ground cover. Using that 3,000 square foot matrix, they will be assigned an ISU number. A majority will be less than 3,000 square feet, so they will be one ISU. Multifamily and commercial have always been charged in this manner, but staff is proposing to add duplexes, triplexes, and anything more than a single-family residential to the measurement model so there is a very clear and accurate measurement and ISU count. It is estimated the base rate may reduce for many accounts. Additional discussion was held including this would affect less than 100 accounts, how the 3,000 square feet was determined, current structure which has no capital facility charges, and looking into a fee schedule. Council direction: No direction was given to staff. April 16, 2024, City Council Meeting Minutes Page 2 of 5 DocuSign Envelope ID: A07E8730-561 C-41B24-A71 D-ABCFC54F578B C. Proposed 2024 Zoning Map (Time Stamp 23:47) Community Development Director Bond noted the City is in the middle of the 2024 Periodic Update to the Comprehensive Plan which the updated Comprehensive Plan must be adopted by December 31, 2024, and is required to plan for the City through 2044. Port Orchard currently has more than enough residential land capacity to accommodate its 2044 population targets. Its employment land capacity is slightly below that which is needed to accommodate the 2044 employment targets. Very minor zoning map changes have been proposed as part of the 2024 Comp Plan Periodic Update process to address the employment land shortage and other issues. The Kitsap County Buildable Lands Report showed the City has land capacity to accommodate an additional 16,250 residents and 5,243 more jobs. The City needs to convert a small amount of residential land to land that supports employment to make up the employment land capacity deficit. The first proposed changes is that Port Madison Enterprises, the development arm of the Suquamish Tribe, purchased lands located south of Sedgwick near Bravo Terrace and Geiger Avenue comprising 56.95 acres. Port Madison Enterprises has applied to the Department of the Interior to have these lands recognized as tribal land. As tribal land, the City's zoning code will no longer apply to the property. However, the zoning in our plan should still reflect the likely use of the land if Port Madison Enterprises were to develop the land. Port Madison Enterprises has indicated that they solely develop commercial property and do not develop residential projects. As such, this land is proposed to be changed from Commercial Mixed -Use to Commercial Heavy. The second proposed change is the Port Orchard Housing Action Plan (HAP) contained additional recommendations for minor zoning changes concerning Park Oriented Development. The HAP suggested that rezoning from residential low density (Residential 2 -R2) to neighborhood mixed -use be considered in the vicinity of Givens Park, McCormick Village Park, and Central (Clayton) Park. Park oriented development was previously approved as part of the McCormick Village Subarea Plan and is currently under development. Staff is recommending the City consider the recommended zoning changes in proximity to Givens Park at this time but forgo any changes surrounding Central Park. Areas north of Givens Park are currently zoned Business Professional Mixed -Use in support of the County Courthouse Campus. Areas along Sidney Avenue across from the Givens Center and areas on the West side of Cline are currently zoned Neighborhood Mixed -Use. Areas to the northwest, west, and south of Givens Park are currently zoned R2. Rather than opening the door to commercial development on these frontages consistent with the Housing Action Plan, staff suggests instead changing some of the R2 properties to be zoned R3 in the hopes of stimulating some interest in Park Oriented Residential Development. This action would also rectify an existing non -conforming use along Sroufe Street. The last proposed change intends to correctly identify parks and open space lands as well as public facilities. Currently all residential open space tracts conveyed as part of a subdivision are zoned residential (primarily R1, R2, and R3). Likewise, the McCormick Woods Golf Course is zoned residential. This is misleading to someone viewing the zoning map the idea that these areas are to be developed residentially, rather than showing these lands as dedicated open space or as a golf course. Likewise, there are numerous stormwater ponds in the city that are shown as residential on the zoning map rather than as public facilities. The map is proposed to be updated to correct these April 16, 2024, City Council Meeting Minutes Page 3 of 5 DocuSign Envelope ID: A07E8730-561 C-41B24-A71 D-ABCFC54F578B designations. As open space gets dedicated as part of future subdivisions, the zoning map will need to be updated to correctly identify open space tracts as being in a parks and recreation designation. It is important to note that these changes will not impact the City's population targets or land capacity as these areas were considered not to have residential capacity in the 2019 Buildable Land Report. Council direction: Council has no issues with staff moving forward with the proposed changes. D. Middle Housing Options -Implementation of WA State Department of Commerce Middle Housing Grant (Time Stamp 52:13) Community Development Director Bond noted the Washington State Legislature passed House Bill 1110 in 2023, followed by ESHB 2321 in 2024, which significantly impacted housing planning for cities like Port Orchard. These laws mandate that cities of certain sizes and locations permit multiple dwelling units per lot in a middle housing form. A memorandum was prepared as a requirement of the City's Washington State Department of Commerce Middle Housing Grant as described in the Scope of Work for C087-23. The Memorandum outlines the requirements of HB 1110 and ESHB 2321 and references the City of Port Orchard Housing Action Plan and is intended to serve as a guide for the City Council. Middle housing includes various building types that harmonize with single-family houses but offer multiple units within a single structure, such as duplexes, triplexes, and townhouses. It plays a crucial role in addressing housing needs by providing diverse housing options, promoting affordability, supporting efficient land use, and enhancing walkability and accessibility in neighborhoods. Port Orchard's zoning designations subject to middle housing requirements include R1, R2 and R3 zones, primarily dedicated to single-family use. However, Port Orchard is required to allow for at least two units per lot in residential zones, with the potential to require more as the population grows, which requires adjustments to our current zoning regulations. Port Orchard's current regulations offer flexibility in accommodating various housing types, including those required by HB 1110 and ESHB 2321. However, code amendments are necessary to meet state mandates. Those amendments include permitting duplexes within the R1 designation, redesignating properties to R2 districts and creating additional building types. Alternative 1 proposes a straightforward code amendment to permit duplexes in the R1 designation, ensuring compliance with HB 1110. Alternative 2 is a proactive approach which suggests redesignating properties to R2 zoning districts, repealing existing R1 zoning standards, and implementing middle housing building types mandated by state law. Alternative 2 is in anticipation of Port Orchard's population exceeding the 25,000-population threshold and becoming a Tier Two city. These alternatives aim to achieve compliance with state mandates, promote affordability, and plan effectively for future growth in Port Orchard. Alternative 3 is rather than going through the process of updating the zoning code and zoning map, we could apply to the state and just show the City's work. April 16, 2024, City Council Meeting Minutes Page 4 of 5 DocuSign Envelope ID: A07E8730-561 C-41B24-A71 D-ABCFC54F578B Discussion was held regarding the different alternatives including the staff's recommendation of Alternative 2. Council direction: Council directed staff to start moving towards Alternative 2. 3. CITY COUNCIL GOOD OF THE ORDER (Time Stamp: 1:11:10) Mayor Putaansuu said he received a summary of the Council Retreat which he will be providing to Council; and the Farmer's Market is asking for the City to become a member and pay a fee which the Council agreed on $500. In response to Councilmember Fenton, Mayor Putaansuu explained that changing the agenda to have all citizen comments at the beginning of the meeting will likely be going before Council in the next couple month as code updates are required. Discussion was held regarding the City's Facebook page and updates regarding road work and projects, public notification of work, and the speed radar signs in McCormick Woods. L,I!_1Ifell] :1i:1►VitAisII The meeting adjourned at 7:56 p.m. No other action was taken. Audio/Visual was successful. DocuSigned by: Brandy Wallace, MMC, City Clerk cuSigned by: jean �u MIGSWA, Do�, Robert Putaansuu, Mayor .`` P C)RT .OR `�oGoap o RArF •. SEAL April 16, 2024, City Council Meeting Minutes Page 5 of 5