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Home My WebLink About05/20/2025 - Work Study - MinutesDocusign Envelope ID: 399C6961-D9D3-4B73-9303-FA78B79BA7AA Oolt RCHARD Meeting Location: Council Chambers 216 Prospect Street Port Orchard, WA 98366 City Council Minutes Contact us: Phone (360) 876-4407 cityhall@portorchardwa.gov www.portorchardwa.gov Work Study Session of Tuesday, May 20, 2025 Roll Call was taken by the Deputy City Clerk as follows: Present: Fred Chang, Councilmember Position No. 6 John Morrissey, Councilmember, Position At -Large Heidi Fenton, Councilmember, Position No. 5 Jay Rosapepe, Councilmember, Position No. 2 Mark Trenary, Councilmember, Position No. 1 Absent: Scott Diener, Mayor Pro-Tempore, Position No. 3 Robert Putaansuu, Mayor Eric Worden, Councilmember, Position No. 4 Staff present: Community Development Director Bond, Principal Planner Fisk, Deputy City Clerk Floyd, and City Clerk Intern Sorensen. Staff present via Zoom: Finance Director Crocker. Audio Visual was successful. 1. CALL TO ORDER A. Mayor Pro tem tem Morrissey led the audience and Council in the Pledge of Allegiance. 2. DISCUSSION ITEMS Mayor Pro tem-tem Morrissey noted due to consultants joining for the Transportation Impact Fee discussion, this item should be first. There being no concerns, the agenda was revised so the Transportation Impact Fees discussion was first and the Middle Housing Code Amendment discussion was second. B. Transportation Impact Fees Community Development Director Bond noted last April, the City approved a contract with Transportation Solutions, Inc. (TSI) to provide an update and review of our transportation impact fees. It is recommended that we look at our impact fees every 3 to 5 years, because our priorities may change. Port Orchard first adopted transportation impact fees back in 2015, and transportation impact fees are assessed on new development to mitigate the impacts of that new development on the city's roads. It is not a fee that is paid by existing residents. It is new development paying for the impacts of new development. We updated in 2021 adjusting the Docusign Envelope ID: 399C6961-D9D3-4B73-9303-FA78B79BA7AA May 20, 2025, City Council Work Study Meeting Minutes Page 2 of 4 list. The fee went up at that time. We really wanted to prioritize funding Bethel and so we put more projects on the list which caused the fee to increase. We have completed a handful of projects since then. He presented three alternatives for updating the fee structure, with each alternative adding more projects to the eligible list and increasing the fee amount. Alternative A represents a slight increase from the current rate, while Alternative C includes all eligible projects and nearly doubles the current fee. Discussion was held regarding the implications of these changes, including how they affect developers and project funding, how Port Orchard's fees compare to neighboring municipalities. Community Development Director Bond stated they are currently average for the region. The discussion touches on the challenges of accurately estimating project costs due to inflation and construction cost increases. Andrew Bratlien with TSI thanked Community Development Director Bond for his explanation and briefly spoke about the impact fees and noted Council should pick the option that makes the most sense for them. He also confirms that Port Orchard's current impact fee is in the mid -range compared to other Western Washington cities, and even with a modest increase, it would remain competitive. Council discussed the timing of fee adjustments, noting that it has been four years since the last change and considering the next 3-5 years before another adjustment. Andrew explains that impact fees are tied to the comprehensive plan, but cost estimates can be updated without amending the plan. The conversation then shifts to anticipated grant funding, noting that some grants are already secured while others are based on educated guesses from various funding sources. Additional discussion was held regarding the different alternatives for impact fee rates, with some members favoring a more aggressive approach (Alternative C) while others express concerns about its effect on businesses. Andrew explains that there are ways to adjust commercial trip generation rates, such as using impact fee rate zones or considering the shared trip effect of clustered businesses, however, he notes that reducing fees for commercial development would likely result in higher fees for residential development or increased costs for existing residents, as the total funding needed remains the same. Lastly, Council discussed potential changes to impact fees for new development projects and different project configurations and funding options, with concerns about balancing growth, infrastructure needs, and costs. They decided to send the matter to the Transportation Committee for further review and prioritization of projects and would also like to hold a public hearing to gather input on the 3 alternatives. There is a general sentiment that while growth is inevitable, careful planning and funding are necessary to avoid infrastructure issues like those experienced in Bethel. B. Middle Housing Code Amendment Principal Planner Fisk provided a presentation '2025 Port Orchard Municipal Code Middle Housing Amendments' which included 2024 Comprehensive Plan Periodic Update, Legislative Action, Current Residential Zoning -Units Permitted, Proposed Residential Housing, Proposed Residential 2 Docusign Envelope ID: 399C6961-D9D3-4B73-9303-FA78B79BA7AA May 20, 2025, City Council Work Study Meeting Minutes Page 3 of 4 (R2), Middle Housing -Amendments, POMC 20.32 Building Types, POMC 20.139 - Residential Design Standards, POMC 20.124 — Parking and Circulation, Accessory Dwelling Units, Unit Lot Subdivision-POMC 20.87 (new), Additional Supportive Amendments, and Middle Housing - Amendments Timeline. Discussion included density, HOA's in CCR, subdivision lots, garages, downtown overlay district, Planning Commission public hearing, zoning map and public outreach. C. 2025 Comprehensive Plan Amendments Development Director Bond explained the 2025 Comprehensive Plan Amendments are currently with the Planning Commission. The Planning Commission did hold their public hearing at their last meeting and decided to leave the record open for additional testimony. There was a little bit of concern from some of the neighbors on changing some properties from industrial to residential and there was concern about traffic that would be using an existing private road easement. The Planning Commission discussed the idea of rather than giving that an R3 zoning going forward, it would be the R2 so there would be potentially less impact. The Planning Commission's recommendation has not been issued yet. The 6 applications received for amendments are: 1. (Postponed) City -initiated amendment proposing to add the Sherman Avenue Stormwater Park Master Plan to Appendix B — Plans Adopted by Reference. 2. City -initiated amendment to the Capital Facilities Element to incorporate new projects and funding sources for transportation, utilities, parks, and public facilities. 3. City -initiated amendment to the Transportation Improvement Program (TIP) to include new roadway, transit, and active transportation projects, along with additional funding sources. 4. Applicant -initiated text amendment proposing a revision to the Expenditures table in the Capital Facilities Element to reflect updated cost estimates based on inflation and anticipated changes in project scope and priorities. 5. (Withdrawn) Applicant -initiated map amendment proposing a legislative Zoning Map amendment for a parcel located approximately 650 feet northeast of Hull Avenue and Sherman Avenue. The amendment proposes rezoning from Residential 2 (R2) to Residential 3 (R3) to allow for increased residential density. 6. Applicant -initiated map Comprehensive Plan Map and Legislative Zoning Map amendment for thirteen parcels located approximately 0.22 miles southwest of SW Old Clifton Road and Lloyd Parkway. The amendment would redesignate the Comprehensive Plan Land Use found in Appendix A from Industrial to Medium -Density Residential (MDR) and rezone from Light Industrial (LI) to Residential 3 (R3), supporting residential Docusign Envelope ID: 399C6961-D9D3-4B73-9303-FA78B79BA7AA May 20, 2025, City Council Work Study Meeting Minutes Page 4 of 4 development. Additional discussion was held regarding the submitted applications, TIP (Transportation Improvement Plan), Diaz property, home occupation, outreach, and next steps. 3. GOOD OF THE ORDER Councilmember Rosapepe spoke about the upcoming Mosquito Fleet Festival and City Hall open house. A brief discussion was held regarding Saturday parking enforcement. Councilmember Fenton spoke about the South Kitsap Senior Parade and asked for more City involvement. 4. ADJOURNMENT The meeting adjourned at 7:59 p.m. No other action was taken. Signed by: A C. ASASARRf 01)41A Brandy Wallace, MMC, City Clerk nuuIIfI'll cpd rCJ�2 4 SEAL ,• Signed by: Signed Robert Putaansuu, Mayor