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09/24/2007 - Regular - MinutesPRESENT: Kim E. Abel, Mayor City of Port Orchard Council Meeting Minutes Regular Meeting of September 24, 2007 Council Members: Mayor Pro-Tem Wyatt, Chang, Clauson, Dilenno, Geiger, Powers, and Putaansuu ALSO PRESEJ'IT: Police Chief Townsend, Police Commander Palmer, Public Works Director Abed, Planning Director Long-Woods, City Clerk Merlino, Deputy Clerk Kirkpatrick, and Assistant City Attorney Jacoby. 7:00 P.M. CALL TO ORDER Police Commander Palmer led the audience and Council in the Pledge of Allegiance. PUBLIC HEARING Comprehensive Plan/Zoning Designations for Brown, Blackstock & Dow Planning Director Long-Woods presented the staff report, noting this was the first part of the request for annexation. The property owners submitted a Petition for Annexation of 20 parcels totaling approximately 36.56 acres, located on the southwest end of the existing Port Orchard Industrial Park and on the west side of Old Clifton Road. The parcels are adjacent to an area zoned Employment Industrial/Office and the applicant intends to extend additional Industria/uses on these parcels. RCW 35.13.177 allows the City to prepare comprehensive plan and zoning designations of any area; and RCW 35.13.178 requires the Council to hold two public hearings before adopting pre- annexation comprehensive plan and zoning designations. The first public hearing was held on June 25, 2007. Planning Director Long-Woods clarified that there were four parcel numbers listed in the Ordinance that were duplicate numbers. At 7:04 p.m. Mayor Abel opened the Public Hearing. Errol! Dow, petitioner, expressed concern with the general blanket moratorium put into effect by the County and asked for a legal opinion on whether or not the City can proceed with the annexation requests. Gary Anderson spoke in favor of the proposed comprehensive and zoning plan designations. There were no further public comments. At 7:07 p.m. Mayor Abel closed the Public Hearing. Minutes of September 24, 2007 Page 2 of 13 In response to Council Member Diienno, Assistant City Attorney Jacoby explained that property owners who were a part of the County's Urban Growth Area prior to December 2006 were not affected by the most recent Board of County Commissioners decision and asked that other issues be discussed during an executive session later on in the meeting. Annexation Request for Brown, Blackstock & Dow Planning Director Long-Woods presented the staff report, noting this was the second part of the request to annex the 36.56 acres located on the southwest end of the existing Port Orchard Industrial Park and on the west side of Old Clifton Road. The Planning Commission, at their May 21, 2007 meeting, recommended that the property be given a comprehensive plan and zoning designation of Industrial with the condition of a required buffer of 50 feet from the Old Clifton Road right-of-way. The Boundary Review Board approved the annexation request at their September 14, 2007 meeting. At 7:10 p.m. Mayor Abel opened the Public Hearing and closed the Public Hearing at 7:10p.m. due to no public comments. Comprehensive Plan/Zoning Designations for Terrv Cousins Planning Director Long-Woods presented the staff report, noting the property owner submitted a Petition for Annexation of one parcel totaling .83 acres, located on the northwest side of the intersection of Sidney Road SW and SW Sedgwick Road. The parcel is adjacent to a commercially zoned area and the applicant intends to extend additional commercial uses on the parcel. The first public hearing was held on June 26, 2007 and staff recommends accepting the comprehensive plan and zoning request as proposed. At 7:12p.m. Mayor Abel opened the Public Hearing. Terry Cousins, property owner, urged the Council to proceed with the comprehensive and zoning plans. She explained that she had been working on this annexation request for over six months and has met all the requirements set by the County and City. There were no further public comments. At 7:16 p.m. Mayor Abel closed the Public Hearing. Annexation Request for Terry Cousins Planning Director Long-Woods presented the staff report, noting this was the second part of the request to annex the .83 acres located on the northwest side of the intersection of Sidney Road SW and SW Sedgwick Road. The Planning Commission, at their May 21, 2007 meeting, recommended that the property be given a comprehensive Minutes of September 24, 2007 Page 3 of 13 designation of Commercial and zoning designation of Commercial retail. The Boundary Review Board approved the annexation request at their September 13, 2007 meeting. At 7:18p.m. Mayor Abel opened the public hearing. William Palmer, Land Use Consultant, stated his understanding that the City did have the right to proceed with approving the annexation requests despite the County's moratorium and cited the case of Glenrose CommunitvAssociation v. Citv of Spokane, which showed similarities to the current issue in Kitsap County. Further, he believed that the Central Puget Sound hearing board invalidated Kitsap County's urban growth areas, but did not invalidate zoning in Kitsap County. He urged the Council to proceed with approval of the annexation requests. Michelle McFarland urged caution on approving the annexation ordinances and questioned whether the City had the authority to extend sewers. Richard A. Brown stated that the problem was not about zoning, but rather if your property was reverting back to rural, which cannot be annexed. His attorney has advised him differently, stating that the City can annex rural property. There were no further public comments. At 7:25 p.m. Mayor Abel closed the Public Hearing. APPROVAL OF AGENDA The following item was added to the agenda after Consent Agenda: • A 15-minute executive session regarding potential litigation The following item was added to Business Items: • Adoption of Ordinance No. 032-07 Imposing a Moratorium on Home Occupations and Home (Cottage) Industries as Accessory Uses in Residential Zones and Setting a Public Hearing on the Moratorium AUDIENCE COMMENTS Kathy Michael, 228 Seattle Avenue, explained that based upon Council Member Powers' comments at the September lOth meeting, she had conducted a survey regarding the finalization of regulations that would allow buildings in the historic downtown core to be built 55 feet (5-6 stories) and proposing 2 or 3 parking garages. She stated that the survey was based on the following two questions: • Do you want to keep the small town character of Port Orchard; and Minutes of September 24, 2007 Page 4 of 13 • Do you want downtown Bay Street building heights kept at 2 stories on the water and 3 stories on the south side of Bay Street. Ms. Michael reported that based upon 611 signatures, the survey results stated 96.4% favored maintaining the small town character and keeping buildings in the downtown core under 55 feet. She provided the City Clerk with the signed survey. Gil Michael, 228 Seattle Avenue, provided the Council and staff with copies of letters from himself, Kathy Michael, and Gerald and Shannon Childs regarding the Downtown Overlay District that were read into the record at the August 27, 2007 meeting. Cindy Lucarelli, 926 Kitsap Street, voiced concern with costs for building parking garages in the downtown area and felt the issue had been misrepresented to the public. Fred DePee voiced concern that the moratorium would take up to two years to resolve and suggested in the meantime the City obtain partial compliance for South Kitsap County in order to proceed with annexing property into City limits. Ron Rider, 714 Bay Street, voiced frustration that for six years he has been involved in trying to get something done in the downtown area and now at the last minute a small group of people are telling him what he can or can't do with his property. Rudy Swenson, 710 Bay Street, voiced appreciation that a survey had been done; however, he noted that the petition had been embellished, as he was not aware that the City was contemplating 6 story buildings in the downtown core. William Palmer, Land Use Consultant, provided a copy of letter he presented to the Kitsap County Commissioners regarding the moratorium. He agreed that the moratorium could last longer than a year and urged the Council to work with Kitsap County to reach some form of compromise. Richard Brown stated that Kitsap County had over two years to come up with a plan and urged the City to work with Commissioner Jan Angel on instituting a plan for South Kitsap County. CONSENT AGENDA Council Member Wyatt moved and Council Member Dilenno seconded the motion approving the Consent Agenda as amended. Upon vote/ motion passed unanimously. A. Approval of Claim Warrants #48406--48480 totaling $201,551.89 B. Minutes of September 10, 2007 City Council Meeting Minutes of September 24, 2007 Page 5 of 13 c. D. E. F. G. H. Adoption of Ordinance No. 031-07 Relating to the Tremont Medical Office Rezone Adoption of Resolution No. 020-07 Relating to the Dave Peterson Shoreline Permit Authorization for Mayor to Sign an Interlocal Agreement with Karcher Creek Sewer District for Use of the City's Decant Station Authorization for Mayor to Sign Professional Services Agreements for Expedited Engineering Review Authorization for Mayor to Sign Agreement with South Kitsap School District for School Resource Officer Employment Authorization for Mayor to Sign Two Puget Sound Energy Change Orders for the Downtown Undergrounding At 7:44 p.m. the Council moved into a 15-minute executive session for the purpose of discussing potential litigation. The Council extended the executive session for an additional 15-minutes and then an additional 5-minutes. After a 5-minute break, Mayor Abel reconvened the meeting at 8:25 pm BUSINESS ITEMS: Adoption of Ordinance No. 027-07 Approving the Comprehensive Plan/Zoning Designations for Brown, Blackstock & Dow Properties. Council Member Putaansuu moved and Council Member Diienno seconded a motion to adopt Ordinance No. 027-07. Upon vote motion passed unanimously. Adoption of Ordinance No. 028-07 Approving the Annexation Request for Brown, Blackstock, & Dow Properties Planning Director Long-Woods clarified that there were four parcel numbers that were duplicated and would be corrected. Council Member Clauson moved and Council Member Wyatt seconded a motion to adopt Ordinance No. 028-07. Assistant City Attorney Jacoby explained that there was very little case law on vesting rights to annexation and should the Council approve the ordinance he would request an amendment adding the requirement that, "the Mayor sign the Ordinance upon receipt of a hold harmless agreement on a form accepted by the City Attorney." Should the action be challenged, the property owner would be liable, not the City. Council Member Diienno amended the motion and Council Member Putaansuu seconded the amendment to include a provision for Minutes of September 24, 2007 Page 6 of 13 indemnification and a hold harmless agreement subject to approval by the City Attorney. Upon vote, the original motion as amended passed unanimously. Adoption of Ordinance No. 029-07 Approving the Comprehensive Plan /Zoning Designations for Terrv Cousins Propertv Council Member Putaansuu moved and Council Member Powers seconded the motion to adopt Ordinance No. 029-07. Upon vote, the motion passed unanimously. Adoption of Ordinance No. 030-07 Approving the Annexation Request for Terrv Cousins Property Council Member Clauson moved and Council Member Wyatt seconded the motion to adopt Ordinance No. 030-07. Upon vote motion passed unanimously. Notice of Intent for Petition for Annexation for Terry Cousins Planning Director Long-Woods presented the staff report, noting this was a Notice of Intent to Petition for Annexation one parcel totaling approximately 2.24 acres contiguous to the City limits. The parcel is located at 6200 Glenwood Road SW, west of the intersection of Glenwood and Sedgwick Roads, on the west side of Glenwood Road SW. The parcel has been recently added to the City's Urban Growth Area through Kitsap County's Comprehensive Plan, 10-year update, approved in December 2006. The parcel has been designated Urban High Density Commercial/Mixed Use in the County Comprehensive Plan with Highway/Tourist Commercia/Zoning. The applicant intends to develop the property with commercial uses in the near future. Assistant City Attorney Jacoby advised that Council would be giving the approval for the applicant to pursue annexation; however, it was unclear whether the County or the Boundary Review Board will process her request. Terry Cousins explained the areas around her parcel have been previously annexed and requested the Council allow her to move forward with the process. Council Member Diienno moved and Council Member Wyatt seconded the motion to allow the applicant to circulate a petition for annexation of the property described in the Notice of Intent and require the simultaneous adoption of comprehensive plan and zoning designations, and the assumption of existing City indebtedness in the area to be annexed. Upon vote the motion passed unanimously. Minutes of September 24, 2007 Page 7 of 13 Adoption of Resolution Employees No.. 019-07 Relating to Non-Representative City Clerk Merlino presented the staff report, noting this would correct a scriveners error and that Resolution No. 019-07 clarifies and reflects the most current information regarding all non-union employees and hereby repeals Resolutions No. 036-06 and 016- 07. Council Member Clauson moved and Council Member Powers seconded the motion to adopt Resolution No. 019-07 repealing Resolution No. 016-07 and No. 036-06 to correct a scrivener's error. Upon vote motion passed unanimously. Discussion Item: Vacation Leave Accrual Benefit to Union Employees This item was continued from the September 10, 2007 Council meeting for further discussion. Council Member Clauson advised the issue went before the Finance Committee at their last meeting and it was the Committee's opinion that this issue was better left for future negotiations purposes. Council Member Dilenno stated it was not uncommon in the labor world to apply an issue across the board for all employees to benefit from and urged the Council to direct the City Attorney to talk with the bargaining units. Council Member Diienno moved and Council Member Chang seconded a motion that the City Attorney work with the represented groups to see if this is a viable amendment to extend the use of vacation leave. Council Member Clauson explained that there were differences between different represented groups and provided the example that law enforcement has unique holiday schedules that respects the fact that some have to work on a holiday and addresses the specifics of their type of work for the City. He stated the issue was not a concern for recruitment in the represented class; rather it was more of an issue for recruitment of non-represented employees. At the request of Council, Police Chief Townsend explained that this has not been an issue as represented employees have other ways to compensate for leave time. In response to Council Member Putaansuu, Assistant City Attorney Jacoby explained that this issue was brought before the Council due to recruitment issues for non- represented employees and could be used as a bargaining tool during Union negotiations. He urged the Council to not pursue the matter at this time. Minutes of September 24, 2007 Page 8 of 13 Upon vote, motion failed with two affirmative votes and five dissenting votes. Council Members Dilenno and Chang cast the two affirmative votes. Second Reading Regarding Approval of Ordinance No. 025-07 Adopting the Downtown Overlay District Regulations Mayor Abel advised the clarified final version was before the Council for consideration. Council Member Clauson moved and Council Member Wyatt seconded the motion to adopt Ordinance No. 025-07 approving the final draft of the "Downtown Overlay District" (DOD) regulations. Council Member Clauson voiced appreciation for the community's involvement during the process. He noted this was a major change for the City and felt it was important to move forward in hopes that it will help struggling retail businesses in the downtown core. Further, the Council discussed many issues and has done a good job of addressing views by establishing a process for buildings that go beyond the standards, and understood that redevelopment of downtown was a step in the right direction. Further, the Council had listened to the public's input during the process and he would support adoption of the ordinance. Council Member Wyatt expressed his concern that the view protection ordinance was not sufficiently addressed. Council Member Putaansuu voiced support of the ordinance, noting that change was difficult; however, the Design Review Board would give the Council an opportunity to review larger projects. Even though it hadn't been an easy process, he was happy with the final results. Council Member Chang voiced support of the ordinance, stating that there is no way to please everyone, but the Council did listen to the public's comments and input and he was satisfied with the final document. Council Member Geiger voiced opposition to the ordinance, stating that before implementing the plan, the Council should really look at it to ensure it won't cause more problems than anticipated. He was concerned that the City would be financially responsible for ensuring there was adequate parking in the downtown core, including building a parking garage and did not feel that was a good use of City funds. He noted this was a small area to be developed and urged Council Members to not compound the already congested downtown. He supported annexing the Bethel Corridor in order to bring in additional revenue as he did not feel new buildings and/or redevelopment of the downtown core would bring in sufficient revenue. Minutes of September 24, 2007 Page 9 of 13 Council Member Diienno spoke in favor of the ordinance and clarified that not agreeing with someone does not mean you are not listening to them and she commented that the view protection ordinance stated you could not take more that 30% of the view, but does not specify what that view is. Additionally, she clarified that the Port Orchard Economic Development Plan prepared by EDAW, Inc., was not in conflict with the DOD ordinance; rather it complimented it in that the EDAW Plan required that regulations be put in place to develop the downtown area, which is what this ordinance was doing. Further, this ordinance does not require the City to have a parking plan in place; rather the property owner must provide a parking plan to the City. Finally, she requested language clarification as follows: Adding the words "new/proposed" throughout the document when it refers to the amenity value. Assistant City Attorney Jacoby stated that his notes were vague and that upon Council's approval he could amend the ordinance to say, "new or proposed." Council Member Powers spoke in favor of the ordinance even though there were portions she didn't agree with and noted that she had weighed all sides of the issue before making her decision. She urged the community to give the process a chance. Council Member Geiger clarified that when he read from Section 18.96.140, it spoke to parking garages. Further, he did not state that they should forget about the downtown; rather they should focus on the outlying areas to generate more revenue. He stated there were other community needs that far outweighed the DOD such as housing for indigent people and storm sewer improvements. He urged the Council to oppose the DOD ordinance. Council Member Clauson clarified that parking spaces and garages were an unknown at this time and felt appropriate measures had been put in place to ensure full discussion prior to allowing downtown development. Assistant City Attorney Jacoby clarified that the ordinance before them created a new Title 18 and Chapter 18.96. He asked for direction on the effective date of the DOD regulations and whether or not Council wanted to tie that to the Design Review Board. If so, staff would prepare a draft ordinance for public hearing at the next meeting as, currently, there is no process in place for evaluating applications to help developers figure out how to comply with the standards. Council Member Clauson clarified that if they adopt the DOD ordinance it would at least tell property owners to go ahead and begin planning and designing; however, property owners would not be able to proceed until the design review process was in place. Minutes of September 24, 2007 Page 10 of 13 Council Member Diienno amended the motion and Council Member Chang seconded the amendment authorizing the effective date of Ordinance No. 025-07 shall be the same as the passage of the Design Review Board Ordinance. Council Member Clauson further amended the motion and Council Member Diienno seconded the amendment that the words, "new/proposed" be added to the document whenever it refers to amenities. Upon vote the motion to amend passed with five affirmative votes and two dissenting votes. Council Members Geiger and Wyatt cast the two dissenting votes. The main motion as twice amended passed with five affirmative votes and two dissenting votes. Council Members Geiger and Wyatt cast the two dissenting votes. Council Member Clauson moved and Council Member Dilenno seconded a motion to extend the meeting to 10:30 p.m. Upon vote the motion passed unanimously. Discussion Item: Draft Ordinance Adopting the Design Review Board Mayor Abel explained that staff was unable to complete the model draft review and advised the document would be ready for Council's review by October 2, 2007. Assistant City Attorney Jacoby explained the ordinance does not require a public hearing, rather a public meeting to allow public comments. He encouraged the Council to email their comments for incorporation into the next Council meeting packet. Council Members directed staff to provide the following information by October 2, 2007: • Staff comments and time line of when items needed to be completed; • Clarification of the section that discusses where the board members shall reside, i.e. inside city limits, the urban growth area including city limits, etc. Council Member Powers moved and Council Member Diienno seconded a motion to prepare a draft ordinance for the October 8, 2007 meeting. Upon vote the motion passed unanimously. Approval of Parking Plan for Railway Marina Planning Director Long-Woods presented the staff report, noting a revised application for Council approval of the final parking plan for the Railway Marina Expansion Project was received August 28, 2007. The project was previously approved through a Shoreline Substantial Development/Conditional Use Permit in 2004. One of the SEPA mitigation measures required the Council to approve the final parking plan for the Minutes of September 24, 2007 Page 11 of 13 expansion project. Staff recommended the application for the Railway Marine Project be approved and that a draft resolution be presented at the next regular meeting for Council's review. Additionally, the applicant is requesting a variance on not installing sidewalks. Mayor Abel clarified that the Railway Marine Plan had been approved in 2004, with the condition that any parking plan had to come back before the Council for final approval. The issue before the Council was whether or not this was a good parking plan and does it meet with their approval. In response to Council Member Chang, Assistant City Attorney Jacoby advised he did not feel a conflict of interest existed due to his employment with Washington State Department of Transportation (WADOT) and Council Member Chang was not required to recuse himself from the issue. Dan Jenks with West Sound Engineering spoke to the conditions of approval, noting that they would comply with each of the items listed, except for item #6. Mr. Jenks explained that WSDOT required the applicant to provide a backing turn radius for safe maneuvering outside the fog line; however, any improvements to the frontage would defeat the additional parking requirements. Discussion between Council, staff and Mr. Jenks ensued relating to the original conditions, creation of a pathway to the observation deck, required number of parking spaces, and installing sidewalks in an effort to meet all the requirements. Council Member Powers moved and Council Member Chang seconded the motion to continue the meeting until all agenda items were completed. Upon vote the motion failed. Three affirmative votes were cast and four dissenting votes were cast. Council Members PowerS;-Chang and Clauson cast the three affirmative votes. Council Member Powers moved and Council Member Chang seconded the motion to continue the meeting to 11:00 p.m. Upon vote, the motion passed with four affirmative votes and three dissenting votes. Council Members Wyatt, Geiger and Diienno cast the three dissenting votes. Public Works Director Abed provided a compromise to move the sidewalk to the front of the building and extend it to where it would connect to the parking lot and Gino's Restaurant (429 Bay Street). This would allow the City the option to buy back that portion and/or move the guardrail back at a future date and still allow a pathway to the observation deck. Minutes of September 24, 2007 Page 12 of 13 Mr. Jenks stated that he would have to go back and reconfigure the sidewalk to ensure it would fit in that area. Council Member Dilenno moved and Council Member Wyatt seconded the motion to approve the final parking plan at the site of the previously approved Railway Marine Expansion Project and direct staff to draft a Resolution for approval at the next regularly scheduled meeting. Upon vote motion passed with five affirmative votes and two dissenting votes. Council Members Geiger and Clauson cast the two dissenting votes. Authorization for Mayor to Sign the 2007 Asphalt Overlay Project Contract Public Works Director Abed presented the staff report, noting that this item was continued from the September 10, 2007 meeting. Mr. Abed explained the Street Committee has reviewed the request and recommended that the Council reject the bids and defer the budgeted amount to 2008. Staff; however, still recommended awarding the contract to Hot Mix Pavers, Inc., for a total amount not to exceed $138,556 as the streets to be overlaid are among the worst in terms of road conditions and the price of asphalt continues to rise. Council Member Dilenno moved and Council Member Wyatt seconded the motion to not approve this contract and reject all bids. Council Member Powers voiced concern with rising asphalt costs and whether there was a way to compromise in order to allow the bid to go forward. Upon vote motion passed with six affirmative votes and one dissenting vote. Council Member Powers cast the dissenting vote. Discussion Item: Review of Draft Kitsap Regional Coordinating Council Interlocal Agreement Mayor Abel presented the staff report, noting that for the past four months, the Kitsap Regional Coordinating Council (KRCC) has been reviewing the existing Interlocal Agreement that formed the KRCC. The KRCC has been recently tasked with Low Income Housing grant responsibilities, Broadband Government Access through KitNet and recently, the Kitsap 20/20 process to review economic development. In response to this activity, the Interlocal Agreement (ILA) needs to be reauthorized to address contracting, insurance and other general "best practices" requirements. Representatives and attorneys from each of the cities, the county, the tribes, and the Port of Bremerton have reviewed the draft ILA and recommend adoption. She requested Council provide feedback to her and Council Member Powers. The item would come back for adoption at a future meeting. Minutes of September 24, 2007 Page 13 of 13 Adoption of Ordinance No. 032-07 Imposing a Moratorium on Home Occupations and Home (Cottage) Industries as Accessory Uses in Residential Zones and Setting a Public Hearing on the Moratorium Council Member Powers moved and Council Member Clauson seconded the motion to impose a moratorium on home occupations and home (cottage) industries as accessory uses in residential zones and setting a Public Hearing date of October 22, 2007 on the moratorium. Council Member Powers explained that the moratorium expired on September 25 1h and this would extend it to October 22, 2007 to allow staff additional time to complete the process. Vote on the motion passed with five affirmative votes and two dissenting votes. Council Members Dilenno and Geiger cast the two dissenting votes. ADJOURNMENT At 11:00 p.m. Mayor Abel adjourned the meeting. ,£i7;a-:D ( :1 l:;;t;J · Patricia J. Kirkpa rick, eputy City Clerk Kim E. Abel, Mayor