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HomeMy WebLinkAboutMinutes 12/17/2002 4831 CITY COUNCIL MEETING Port Angeles, Washington December 17, 2002 CALL TO ORDER - Mayor Wiggins called the regular meeting of the Port Angeles City Council to order REGULAR MEETING: at 6:00 p.m. ROLL CALL: Members Present: Mayor Wiggins, Councilmembers Braun, Campbell, Erickson, Headrick, Rogers, and Williams. Members Absent: None. Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, B. Collins, M. Connelly, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, L. Haehnlen, J. Cole, S. McLain, L. Dunbar, J. Harper, and S. Roberds. Public Present: J. Schmitz. PLEDGE OF The Pledge of Allegiance to the Flag was led by Retired Naval Captain Glenn Cutler. ALLEGIANCE: PUBLIC CEREMONIES, Port Angeles as Second National City: Mayor Wiggins welcomed June Robinson, who PRESENTATIONS AND informed the Council that, in addition to being a columnist for the Peninsula Daily PROCLAMATIONS: News, she was President of the Clallam County Historical Society. She was asked to speak to the Council about one of the most loved myths of the City of Port Angeles, Port Angeles as Second that being Port Angeles as the Second National City. A transcript of Ms. Robinson's National City comments is set forth in Exhibit "A",which is attached to and becomes a part of these minutes. Presentation of Employee Presentation of City of Port Angeles Employee Association Scholarship: Mayor Association Scholarship Wiggins and City of Port Angeles Employee Association President Lou Haelmlen presented the Association's first scholarship to Anya Ziomkowski. Accepting the scholarship on Anya's behalf was Finance Director Ziomkowski. WORK SESSION: None. LATE ITEMS TO BE The matter of Council seating arrangements was added as Agenda Item I. 1. at the PLACED ON THIS OR request of Councilman Headrick. Discussion concerning a fishing derby was added as FUTURE AGENDAS: Agenda Item 1.2. at CouncilmanBraun's request. Mayor Wiggins added Agenda Item 1.3., relative to setting a date for a Council retreat. He also added the National League of Cities March meeting as Agenda Item 1.4. Manager Quinn asked to add Agenda Item I. 5., consideration of the Gateway Visitors Center. Jace Schmitz, 234 Horizon Hills Road, Sequim, informed the Council that he had been talking to one of the Councilmembers about some real estate transactions that had failed because of certain City regulations. That particular Councilmember asked that Mr. Schmitz speak to the Council about the negative impact of City regulations on development. Mr. Schmitz distributed supportive information to the Council and staff, noting five specific properties that he wanted to address this evening. He indicated that the cost of development had caused these transactions to fail, as developers cannot -1- 4832 CITY COUNCIL MEETING December 17, 2002 LATE ITEMS TO BE afford to make the investment required. PLACED ON THIS OR FUTURE AGENDAS: Directing reference to a 34-acre parcel, Mr. Schmitz had an investor who wanted to (Cont'd) move to Port Angeles to develop the property. The property, located adjacent to the IBC Church, was going to be developed, annexed to the City, and rezoned if possible. The investor hoped to develop the parcel into 80 quarter-acre lots. Development costs provided to Mr. Schmitz by Steve Zenovic were ranging from $15,000 - $17,000 per lot. Additionally, the developer would have been required to extend Laurel Street, resulting in an investment of approximately $22,000 per lot. There would have been no profit for the investor, so he chose to leave. The second parcel cited by Mr. Schmitz was located on Milwaukee Drive, across the street from homes on the high bank waterfront. This is a four-acre parcel, and the interested developer wanted to do quarter-acre lots. The City's requirements involve improvements to both Milwaukee and 10th Street. Because the City had indicated a willingness to work with the developer, it was thought feasible for the developer to build a home on the property and live there a few years until the time was right to proceed with development. However, because a home is considered a development, the developer would still have been required to improve Milwaukee and 10th Street. The developer chose not to proceed with the purchase, as this concept would not be economically feasible. Mr. Schmitz then cited property located on "N" Street, which was appropriately zoned RS-9. The property fronts on "N" Street and on 14th Street, and then 16t~ Street doesn't exist at that particular location. Nevertheless, Mr. Schmitz indicated the City wants 16th Street to be improved when this particular parcel is improved. Whatever the reason for the rules, he felt the regulations to be overkill, as having to improve the two roads plus eveporuhing else that is required makes the development too expensive. Mr. Schmitz indicated that development of the parcel in the near future would not be likely. With the two companies coming to Port Angeles and with the jobs that will be created because of this commercial growth, Mr. Schmitz felt that all of this property will eventually be developed, as interested purchasers are causing the prices to go up - it is a matter of supply and demand. He felt that there is a desire to be certain that individuals other than the wealthy should be able to purchase property, but he noted he had already cautioned the County about restrictions causing people to be priced out of the market. He reviewed prices being paid in the County by individuals who could only afford mobile homes, and he indicated the same scenario will also occur in Port Angeles. Mr. Schmitz urged the use of common sense in applying development regulations, citing the property on "N" Street, where there could be no rational reason applied to the requirement to improve 16th Street. He felt the development of these parcels would result in taxes being paid that could eventually help fund the street improvements needed. Mr. Schmitz then cited an 8-acre parcel he owns on the unpaved portion of Milwaukee. Zoning in this particular area is for up to fifteen units per acre, which would be perfect for either a mobile home park, retirement mobile home park, or condos. He indicated there are more and more people asking for this type of housing. However, as the owner of the property, he would be required to improve all of the roads which is too expensive. He felt that the City is waiting for property owners to make the improvements, while the property owners are waiting for the City to make the improvements, so ultimately nothing is happening. Mr. Schmitz indicated there is an entire tax base that is disappearing. Mr. Schmitz directed attention to the last parcel, which is 7/10 of an acre located in the in-between area of Milwaukee Drive and has been almost sold two or three times. The property has both sewer and water; however, the power is 421 feet away and, because -2- CITY COUNCIL MEETING 4833 December 17, 2002 LATE ITEMS TO BE it's in the City, it would cost $12,500 to bring the power that 421 feet. If this were PLACED ON THIS OR PUD, he learned it would cost about $2,200 or $5.00 a lineal foot to put in power. Mr. FUTURE AGENDAS: Schmitz could not understand the difference in the costs for power. (Cont'd) Using the properties cited this evening, Mr. Schmitz ran some calculations on what could have been 211 lots developed at a value of $35,000 per lot. Had those properties been developed, there could have been over $7 million worth of lots that would be on the tax rolls in the City. Figuring development costs of $17,000 per lot, there's $3.5 million that didn't come to the community that would have been paid to contractors and would have benefitted the community. Mr. Schmitz urged the Council to give this matter further thought and to consider changing the rules. He felt that once development is accomplished and properties are placed on the tax rolls, then the City could arrange to pave the roads. In the ensuing discussion, Councilmember Rogers advised the Council that these issues had already been addressed recently by the Utility Advisory Committee, as well as the Community & Economic Development Committee. Action is being taken on property development, and she and Deputy Mayor Campbell are working on a plan for street development. Manager Quinn informed the Council that he had recently asked Economic Development Director Smith to work on the matter of development standards in the City. There have been recent successes in the commercial and industrial areas, but not many residential developments have been accomplished of late. He indicated that City staff is looking at a combination of standards and incentives, and alternative ways to finance development. Mr. Schmitz was thanked for his comments. FINANCE: I. Contract Change Order No. 1 .' "I" Street & Lauridsen Boulevard Sidewalks, Project #22-03: 'T' Street & Lauridsen Boulevard Sidewalks Public Works & Utilities Director Cutler explained the nature of the change order, Contract Change Order indicating the request was being submitted in order to maximize grant funding for the project. Because the low bid was significantly below the level of grant funding available, the City could install additional sidewalks without asking for any additional funds. $4,500 of City funds was budgeted for leverage against the grant funds which, if unused, must be returned to the State. Councilman Campbell moved to authorize the City Manager to sign Contract Change Order No. 1 to the Aldergrove Construction contract for "I" Street & Lauridsen Boulevard sidewalks, for expanded sidewalk construction in the added amount of $55,904.28 and 15 working days. The motion was seconded by Councilman Williams and carried unanimously. Institutional Network 2. Institutional Network Services Agreement Amendments: Services Agreement Amendments Power Resource Manager Dunbar presented the gift of new information in that the Northland Wide Area Network Use Agreement is now complete; Northland has established the fiber link and all nodes are in place and have been tested. Mr. Dunbar indicated that formal acceptance will be forthcoming at a future Council meeting. Of the $330,000 budget, the project is 17% below budget, which represents $56,000. Mr. Dunbar then reviewed the proposed amendments to the I-Net Services Agreement with Capacity Provisioning that would allow the Local Area Networks to exceed previous budget and allow sales tax to be added to the agreement, a matter that was inadvertently overlooked in the contract. He reviewed the background of the I-Net Services Agreement and other telecommunications efforts, noting the sales tax amendment would increase the City' s non-recurring charges by a maximum of $ 34,768. Contingencies were included in the Cable Television Franchise, the WAN Use Agreement, and the I-Net Services Agreement, but each of those agreements stand on -3- 4834 CITY COUNCIL MEETING December 17, 2002 Institutional Network their own. Staffis asking for an allowance to use the overall project contingency where Services Agreement needed; no budget increase is being asked. With the $56,000 savings noted earlier, Mr. Amendments (Cont'd) Dunbar indicated that the overall project would come in less than what was originally budgeted. Mr. Dunbar introduced Jim Harper, Information Technology staff representative, and Craig Johnson from Capacity Provisioning. During the time the agreement was being negotiated with Capacity Provisioning, Mr. Dunbar indicated that the Information Technology Division was undergoing an audit, looking at the infrastructure in the City buildings. Recommendations that came forward from that audit involved the need to improve security as relates to Homeland Security threats plus other unforeseen costs, and Mr. Dunbar expressed the need for flexibility to spend more funds to assure appropriate levels of security. Mayor Wiggins inquired as to whether any expenses could be refunded specifically as they relate to the Homeland Security issue. Mr. Dunbar responded that all expenses on Homeland Security would be tracked separately in the event grant funds could be applied for at a later date. Brief discussion followed, after which Councilmember Rogers moved to approve the proposed amendments to the Institutional Network Services Agreement and authorize the City Manager to use the contingency funding for local area networks as necessary. Councilman Campbell seconded the motion, which carried unanimously. Break Mayor Wiggins recessed the meeting for a break at 6:55 p.m. The meeting reconvened at 7:10 p.m. PUBLIC HEARINGS - 1. MCA 02-01 - Industrial Heavy Zone Amendment: OTHER: Assistant Planner Roberds presented the matter of the proposed amendment to the MCA 02-01 - Industrial Industrial Heavy (IH) Zone, which would amend the setbacks and would impose a Heavy Zone Amendment maximum height of 75'. Indicating that such a change would put the City of Port Ordinance No. 3133 Angeles more in alignment with other municipalities, Ms. Roberds noted that the 75' height maximumcould be exceeded by a Conditional Use Permit. She clarified that the setback from a fight-of-way would be retained, but the other setbacks would be eliminated except when they are abutting commercial or residential zones. Mayor Wiggins asked how this would apply to the Westport project and whether the 30' setback from Marine Drive would still be required. Ms. Roberds indicated the setback in that particular instance must be retained. Councilman Campbell asked for clarification as to the reasoning for the 75' height maximum, and Ms. Roberds explained that research indicated that other municipalities all had height maximums. The 75' figure seemed to be a reasonable starting point and, again, anything exceeding that figure would be subject to a Conditional Use Permit. Director Collins pointed out that, based on the Shoreline Master Program, a height of 75' would not require a variance either from the City or from the State. If the language were to be left ambiguous, height maximums could be 35' under the Shoreline Master Program. This amendment is an effort to clarify the height so as to avoid running afoul of the State shoreline requirements. In addition, by eliminating the setback from property lines, one of the disadvantages is that one may be unable to get between buildings, but because of the height limitation, firefighting apparatus would be able to get on top of the structure to fight fires. Lengthy discussion followed concerning the height limitation as relates to current structures, such as at Daishowa, or potential structures, such as hangers at the airport. Ms. Roberds stressed the fact that it would be unlikely that a Conditional Use Permit would be denied unless there are specific findings that could apply to such a denial. Following further discussion, Mayor Wiggins read the Ordinance by title, entitled -4- CITY COUNCIL MEETING 4835 December 17, 2002 PUBLIC HEARINGS - ORDINANCE NO. 3133 OTHER: (Cont'd) AN ORDINANCE of the City of Port Angeles, Washington, revising the area and dimensional requirements for the Heavy Industrial (IH) MCA 02-01 - Industrial Zoning district and amending Ordinance 1709 as amended and Heavy Zone Amendment Chapter 17.34 of the Port Angeles Municipal Code. Ordinance No. 3133 (Cont'd) Councilman Braun moved to adopt the Ordinance as read by title, citing Findings 1 - 11 and Conclusions 1 - 4, as set forth in Exhibit "B" which is attached to and becomes a part of these minutes. Councilman Headrick seconded the motion. Clerk Upton pointed out that the public hearing had not been conducted, so Mayor Wiggins opened the public hearing at 7:20 p.m. There being no public testimony, the public hearing was closed at 7:20 p.m. Brief discussion was held concerning the height limitation for chimneys, antenna towers, and the like. Director Collins clarified these items would be exempt from the height limitation. A vote was taken on the motion, which carried unanimously. MCA 01-02B - Parking 2. MCA Ol-02B - Parking Ordinance: Ordinance Director Collins advised the Council that the recommendation is being made to continue the public hearing. Mayor Wiggins opened the public hearing at 7:25 p.m. There being no public testimony, Councilman Braun moved to continue the public hearing on Municipal Code Amendments MCA 01-02B revising the City's parking regulations to the February 4, 2003, meeting. The motion was seconded by Councilmember Rogers and carried unanimously. CONSENT AGENDA: Discussion was held relative to Item 6, concerning the lease of a Caterpillar Track Type Tractor D-7R. The matter was being returned to the Council, as previous approval was not inclusive of sales tax. The issue was explained by Director Cutler, after which the Council considered the payment options for the lease. Finance Director Ziomkowski offered further clarification regarding the cost effectiveness of annual payments in advance, and Councilmember Rogers indicated the Utility Advisory Committee had discussed the issue in depth. Councilman Campbell moved to accept the Consent Agenda, to include: 1.) City Council minutes of December 2, 2002; 2.) Check List - December 6, 2002 - $516,937.80; 3.) Electronic Payments - December 6, 2002 - $1,219,944.25; 4.) Western Public Agencies Group Agreement for 2003; 5.) Olympic Medical Center Rebate Agreement; and 6.) D-7R Equipment Lease from N.C. Machinery Company. The motion was seconded by Councilman Braun and carried unanimously. CITY COUNCIL Councilmember Rogers reported on attendance at the Utility Advisory Committee COMMITTEE meeting, as well as the Community & Economic Development Committee meeting. A REPORTS: recent meeting of the Lodging Tax Advisory Committee involved discussion about surplus conference center funding. At a Chamber of Commerce retreat, discussions were held pertinent to Parks & Recreation activities, field maintenance, and efforts to work with the City on impacts of what the programs can do in the City. Councilman Williams attended a breakfast presentation at Peninsula College and participated in the value engineering discussions at the Transit relative to the Gateway project. Councilman Braun also participated in the value engineering discussions; he attended the OPS Award Breakfast hosted by Parks & Recreation, and he attended the Clallam Transit Board meeting. Councilman Braun also attended the meeting on the pool renovation, and the figure of $4.1 million has been projected for renovation purposes. The group meeting on the ice skating rink has been considering the location of Lincoln Park for a skating facility, and he has asked that consideration be given to a combination of indoor recreational activities in a new facility at Lincoln Park. Possible -5- 4836 CITY COUNCIL MEETING December 17, 2002 CITY COUNCIL activities that could be accommodated are ice skating, swimming, tennis, and soccer. COMMITTEE REPORTS: (Cont'd) Mayor Wiggins attended the Chamber of Commerce meeting, at which time Larry Nelson from Westport made a presentation. Kudos to the City of Port Angeles were offered by Mr. Nelson. Councilmember Rogers indicated that a contingent from Port Angeles would be traveling to Olympia on Wednesday relative to the graving yard project. Councilman Headrick attended the OPS Award Breakfast, as well as the meeting with Councilmembers Braun and Erickson on pool renovation. He, Mayor Wiggins, and Councilman Braun also met with Parks Director Connelly concerning a proposed activity involving hydroplanes. This activity, proposed for the fall, is being coordinated by Bob Harbick and Jack Harmon. The proposed Timber Town was also discussed. Councilman Campbell, having attended the NLC Conference on behalf of the City, submitted a comprehensive report on meetings attended. One of the overriding issues discussed was that of the fiscal crisis being confronted by state and local governments. It is not likely that federal assistance will be forthcoming; however, on the matter of Homeland Security, it appears funding will be disseminated mainly at the national and state levels. Regional and statewide plans will be the focus, but funding should be made available locally for hardware infrastructure for purposes of communications. It is unclear if planning money will be set aside. Councilman Campbell indicated that intergovernmental partnerships in the form of intra and inter governmental response agreements are being strongly endorsed. He spoke of the number of consulting companies that have come into being for the purpose of conducting security risk assessments. Councilman Campbell gathered a great deal of information, and he offered to disseminate the information to the other Councilmembers. Councilman Campbell also attended a seminar on "Guarding the Public Checkbook", and he also noted the focus of the National League of Cities in 2003 on early childhood success. He has asked for further information from the NLC on this subject, keeping in mind the possibility of surveying the community as relates to support services for small children. In addition, he distributed copies of an article from the Salt Lake City Tribute relative to a property tax increase of 138% being implemented in that county. Mayor Wiggins inquired of Chief Riepe and Chief McKeen as to a briefing on the regional status of Homeland Security. ChiefMcKeen reported on a meeting attended today of the Regional Homeland Security Coordination District. The State has been divided into nine districts; Port Angeles is part of District 2 involving Clallam, Jefferson, and Kitsap Counties. The meeting's purpose was to discuss the role of the group and what deliverables must be provided to the State. Region 2 was given $123,000 through the Federal Government for mostly planning purposes. There are three basic deliverables required for this funding. One is to ensure that all jurisdictions have a comprehensive emergency plan that has an all-hazard approach, but more specifically, addresses bio-terrorism as well as other types of terrorism. Also, there must be good coordination not only among jurisdictions in acounty, but the counties have mutual aid agreements as well and, further, the regions must have mutual aid agreements with the other regions. Concerns discussed centered around the fact that emergency aid is often providedafter a declared disaster has occurred and all mutual aid resources have been exhausted. As mutual aid agreements are expanded, the resources become very large, and it would be extremely difficult to expend all of those mutual aid resources. Ultimately, then, it may be difficult to obtain emergency funding because of these mutual aid agreements. This issue is being approached with caution by all participants. Chief McKeen noted that much of the funding just approvedwill be used for a planner and some of the associated costs. Committee members who will be setting policy will be those who are generally emergency managers for the counties and municipalities. Brief discussion followed, and Police Chief Riepe informed the CITY COUNCIL MEETING 4837 December 17, 2002 CITY COUNCIL Council that the Police Department has been in contact with the FBI and the Joint COMMITTEE Terrorism Task Force. There has not been any indication of terrorism activity in the REPORTS: (Cont'd) Puget Sound area. Councilmember Rogers urged Chief Riepe to keep a placeholder for the City of Port Angeles in the Task Force. ORDINANCES NOT None. REQUIRING PUBLIC HEARINGS: RESOLUTIONS: None. OTHER 1. Council Seating .4ssignments : CONSIDERATIONS: As a follow-up to a suggestion by Mayor Wiggins that Council seating assignments be Council Seating changed, the Council agreed by consensus to retain thc current seating arrangement. Assignments Fishing Derby 2. Fishing Derby: Councilman Braun referenced a recent newspaper article concerning the return of a fishing derby to Discovery Bay. Noting past successes of the fishing derby in Port Angeles, he urged the Chamber of Commerce to explore the possibility of reintroducing the derby to Port Angeles. Councilmember Rogers indicated that Russ Veenema, Chamber Director, has already been in pursuit of that possibility. City Council Retreat 3. City Council Retreat: The Council scheduled a retreat for Saturday, January 25, 2003, 10:00 a.m., at Mayor Wiggins' cabin. National League of Cities 4. National League of Cities March Meeting: March Meeting Mayor Wiggins asked for discussion concerning Council representation at the NLC Conference in March. It was agreed that Mayor Wiggins and Councilmembers Erickson and Campbell would likely attend. Also hoping to attend were Councilmembers Williams and Rogers, who will attempt to seek travel funding from other sources. Gateway Visitors Center 5. Gateway Visitors Center: Manager Quinn advised the Council that the Gateway Projectis presently at the 75% design state, and it is timely to consider whether a Gateway Visitors Center should be added to the prbject. The Chamber of Commerce previously expressed interest in such a building, and the City must now decide whether to extend the second floor area to create additional office for public or private use and how to finance such an addition. Manager Quinn had distributed information relative to the proposal, to include a preliminary design with associated costs from the architect, mortgage amortization schedules, a 2-dimensional design concept, and the floor layout from the design plans. He discussed the details relative to projected costs, noting that the costs for the Chamber building could approximate $381,120, and the costs associated with the second floor extension could approximate $172,824. Discussions have been held with the Chamber of Commerce on the matter of financing, and the Chamber has indicated a preference for the City to £mance the building with a payback of the principle and interest in the form of lease payments structured for ownership of the building when the term is satisfied. Manager Quilm discussed other £mancing options that could be considered, as set forth in the memorandum he had distributed. He itemized certain matters for the Council's consideration, such as -7- 4838 CITY COUNCIL MEETING December 17, 2002 Gateway Visitors Center whether the City is willing to finance the construction or if the financing should be Cont'd) directed to the private sector. Another consideration is, if the City is willing to finance the addition, whether there should be a minimum down payment as opposed to financing in full. Also, if the City is willing to finance the second floor extension, should construction occur now or at a future date? Manager Quinn added the Council could consider an additional amount beyond construction financing to cover the fair market value of the building for ownership at the end of the term in order to avoid the issue of gifting a public asset. He reviewed certain options that could be incorporated that may make portions of the project eligible for FTA funding. Examples of this would be if Chamber volunteers are distributing Transit information, or if the Police Department were to have an office and a presence on site for security purposes. Mayor Wiggins spoke as a champion of this building, as it would add a necessary dimension to the building. He felt the Chamber offices and Visitors Center would add something of real value. The Councilmembers echoed Mayor Wiggins' comments and spoke in support of the addition. Therefore, it was agreed by consensus that the building and second floor addition should move forward. Manager Quinn felt that many of the financial issues could be addressed and finalized at a later time. PUBLIC HEARINGS - None. QUASI-JUDICIAL: INFORMATION: Manager Quinn reminded the Council of the December 21 Christmas Party. The January 14 Real Estate Committee meeting was changed from 4:00 to 2:00 p.m. Councilmember Rogers announced a Parking Committee meeting on January 9 at 3:00 p.m., as well as an open house for Capacity Provisioning and the Tech Center on January 10, 4:00 - 7:00 p.m., at the 8th Street Tech Center. Manager Quinn announced the receipt of $25,000 from Alaska Tanker for the Valley Creek restoration. Brief discussion was held concerning the placement of funds derived from the joint auction in either Equipment Services or the General Fund. EXECUTIVE SESSION: The meeting adjourned to Executive Session at 8:45 p.m. to discuss two matters of litigation and one matter of personnel/performance evaluation for approximately one hour. Later, Attorney Knutson announced additional items for consideration, one being a matter of real estate and the other regarding union negotiations. ADJOURNMENT: The meeting was adjourned at 10:12 p.m. Wiggins, Mayor B~cky J. U3toqCit~lerk -- -8- Exhibit "A" 4839 Transcript of comments made by June Robinson at City Council meeting of December 17, 2002, on the matter of Port Angeles as the 2nd National City: "Your crowds aren't as large or as loud as they are in Sequim. One of the things that I do - on the first Council meeting of each month, I give the Sequim City Council a section of history of Sequim. And we're working through gradually to today, but we're sure a long way back. By the way, I'm June Robinson and, in addition to being a columnist for the Peninsula Daily News, I'm the President of the Clallam County Historical Society and a few other things. But, I've been asked to talk to you today about one of the most loved myths of the City of Port Angeles, and that is Port Angeles - the Second National City. It's engraved in bronze, not as a myth, but it's engraved in bronze as a real thing that happened on a granite rock between the Carnegie Library Building and the old City Fire Hall on Lincoln Street. And it's frequently mentioned - I don't think I've seen a Port Angeles history book that has ever been written that did not say Port Angeles is a Second National City. The term, as far as I can tell from very extensive research, came into existence about 103 years ago as part of a campaign to introduce Port Angeles as a center of commerce and the railroad terminus for the Puget Sound / Strait of Juan de Fuca area by the first predecessor of the Chamber of Commerce Citizens Association which was established in 1889. They wrote a very beautiful book - the only one, it's a booklet really, that I've ever been able to find that's in the National Archives, and I was privileged to be able to copy it. It's called A Pictorial History of Port Angeles from the Citizens Association - very florid writing. They'd run you out of town if you wrote like that today. But, among other things, it said about Page 4, Port Angeles was selected for and made a townsite by the United States Government many years ago after a very careful survey lasting some two years and extending over this entire coast. Among the many admirable locations which presented themselves for this purpose to those engaged in the work, Port Angeles with its magnificent harbor privileges, it's recognized facilities for commerce and inland trade, and it's unequaled facilities for commerce and island trade, and it's unequaled natural advantages was finally decided upon. It is the only townsite, with the exception of that upon which the City of Washington, the national capital, is now built that the Government ever laid out. The language sounds very remarkably like that used by Norman R. Smith, who was Victor Smith - Victor Smith, remember, was the Father of Port Angeles - his son, he returned to Port Angeles about 1885 and was, in 1889, the Secretary of the Citizens Association, and he was later a Mayor of Port Angeles for several terms. He wrote an unpublished biography of his father, Victor, many years after he was Mayor. And he used the term Second National City in his book, but that wasn't the only time that his fiction became fact in his book. In another section of the history of Port Angeles, and this isn't Victor Smith, but it's the Citizens Association that claimed that the harbor here was named by Juan de Fuca. Juan de Fuca, who may or may not have even existed, did not report that he took refuge from a storm here and named the harbor Port Angles. In fact, we have on record that the harbor was named for a much later Spanish explorer, Francisco Eliza in 1791. And Second National City is real nice prose, but it's not quite true. What the paragraph did was combine two Government actions into one fact. On June 19, 1862, at the request of Victor Smith, Abraham Lincoln signed an Executive Order setting land at Port Angeles aside, locking it up as it were in the Military and Lighthouse Reserve. And that 484O language was as follows: Port Angeles and Ediz Hook in Townships 30 and 31, Ranges 5 and 6, for Lighthouse purposes at Ediz Hook, from low water mark at the lowest and on all sides not exceeding ten acres, for military purposes, a reservation for five miles in front on east and west and said harbor and bay, including the tongue of land known as Ediz Hook, extending back or southward from the harbor of Port Angeles to the depth of one mile. In other words, everything from the harbor to Lauridsen Boulevard, which was then called Grand Boulevard or later called Grand Boulevard. And from Ennis Creek to what is now Ocean View Cemetery was set aside as a Military and Lighthouse Reserve, and it effectively closed all of the land within that area to any settlement or land claims. And that very same day, also by Executive Order, the President ordered the Puget Sound Custom House to be moved from Port Townsend to Port Angeles. The fact of the reserve stopped a few men, including Victor Smith, from speculating in Port Angeles real estate. Their claim had not been registered with the land office either in Olympia or the Auditor in Clallam County which, at that time, was headquartered at New Dungeness because, at that time, all land claims had - could not be, except donation land claims, could not be considered official until the land was surveyed. And Port Angeles area was not surveyed at that time. It was chiefly unoccupied, virgin forest, except for the Custom House and the Navy hospital which were built on the beach at the foot of Valley Creek, and Valley Creek at that time was known as Mariner Creek. A wharf was built into the water where ships could be docked while being inspected, and incidentally, all of that land now from the hillside which is where they were located, has been filled in 10 - 20 feet with fill from up the hill. And the Custom House, of course, was washed into the bay when there was a horrible storm one year, a blockade like a dam was built up in the hills and it broke all at once and the water came rushing down and pushed the Customs House, the people in it and everything into the bay. The next year, on March 3, 1863, the United States Congress passed an act for increasing the revenue by reservation and sales oftownsites on public lands. And that provided that public lands, whether surveyed or unsurveyed, on the shores of harbors at junctions of rivers, important ports, or natural or prospective centers of population, should be set aside, surveyed, and sold. The fact that they should be offered for sale at public outcry - I just love that terminology - offer for sale at public auction. The funds raised were to be used for the expenses of the Union Army, then engaged in the Civil War. This not affected only Port Angeles, but there were at least nine other cities in western Washington, as well as many other future communities in the western states that were affected by this. There was nothing in the Act that even hinted which, some people say, Second National City means, that in case Washington, D.C., were to be captured by Confederate troops, the Nation's Capital would be moved to Port Angeles. And this was some people's understanding - this is some people's understanding of what Second National City meant. At that time, if you had perfect connections and absolutely marvelous weather for sailing ships, you could get from Washington, D.C., to Port Angeles in six weeks - that would be the very fastest you could make it. When the surveyor arrived to survey the Port Angeles townsite, Victor Smith who was the Custom's collector and the self-appointed leader of the community, which was not very big because it was mostly the Customs House and anybody else that worked there who lived along the beach, persuaded him that only the land along the waterfront from Ennis Creek to Tumwater 2 4841 Creek and back as far as 4th, should be surveyed. An area from approximately Laurel to Tumwater and back to 6th was surveyed into blocks. Land east of Lincoln was set aside to be sold as 1 O-acre plots, and the remainder - in other words, everything from 4th Avenue back to Lauridsen and from Tumwater to the Cemetery, which would be the Cemetery, remained reserve land closed to settlement. This report went back to the Government Land Office and nobody objected, and so the reserve continued. It was this Government survey that was the basis for the claim that Port Angeles was a National City, because the land was surveyed by a Government surveyor, just as Washington, D.C., had been. As for the Townsite, after the lots were surveyed and prices fixed, they were sold at public auction. Some lots were designated for government purpose, and we know Lot 33 at the top of the bluff above Ennis Creek was designated for hospital purposes. It was laid aside by the Federal Government for hospital purposes, and we have a hospital up there. Certain large blocks on the east side of Lincoln Street were identified as a future home of local government offices, and that is where the County Courthouse and the Fire Station are. Incidentally, where the Library is now, that land was about 20 or 25 feet higher than it is now because it was all sluiced down into the Port area. The Catholic Church, a very large church building, they were informed that this was illegal because that land was set aside for government use. So, they sold that property and building to the County, and that was the third County seat in Port Angeles when they moved into Port Angeles. And it remained so until 1916 Another place where the Government set aside land for a specific purpose was at the top of the bluff and at the bottom of the bluff- actually those map makers paid absolutely no attention to the fact that there were ravines and a bluff in this City. They just drew all their lots out without worrying about it - they were just drawn out square. And those were for Federal Government purposes, and that's where the Federal Office Building and, for a long, long time, there was a Government signal tower and weather station at the top of the bluff above the Federal Building. But the other lots were sold, very slowly. There were 30 sales made the first day for a total of $4,570.25. There were years when no lots were sold. After 26 years of very slow growth, Port Angeles was announced as the site of the Puget Sound Cooperative Colony, which is down near Ennis Creek where Rayonier was, and sales picked up. By 1889, when railroad fever reached Port Angeles as well as Port Crescent and Port Townsend and Seattle and Tacoma and the rest of them, all of the townsite lots were sold. And people were wandering around the City, wishing that they could get in and have more - buy more property, but it was all reserve, and the railroads were running around here looking for places where they could get railroad right-of-ways, some of them through the reserve. A man by the name of John Murphy - he was a lawyer sent out by one of the railroad companies to purchase rights-of-way- met with the people who were agitating for a series of meetings, and they ended up jumping the reserve on July 4th, 1890. They had agreed in advance that people who go in - and by the way, they had been going in and looking after they made this decision before the day came - looking they could take up two lots each, one they had to build a home on and the other they had to improve. And they're the standard City lots - I think it's 40 x 150 is a standard City lot here in Port Angeles. Well, they could each take up 2 - they made some rules about it - no minors could acquire land, but women could. The story of the reserve is another story to tell. But, they asked Congressman Wilson to push for a Congressional Act which would legalize their actions and make it possible for the squatters to purchase the reserve land. In the meantime, they lived illegally on that land for 2 - 3 years. In August, 1893, Congress authorized 3 4842 a new survey to be made extending the lines of the streets back from the waterfront and established a procedure for squatters to purchase the lots that they had settled. The prices were varied, anywhere from $15 per lot - my grandfather bought two lots for $30 up on 8th Street, between Laurel and Oak. The lots at the top of the bluff, however, if they faced the bluff they were $150 and if they faced away from the bluff, the other side of the block they were $15. There was a lot of squabbling, and I've got all of the documentation - I'm writing a book about it. It was during that time that the Board of Trade which succeeded the Citizens Association advertised Port Angeles as the Gate City and, for a long time, we were known here as the Gate City - the gateway to the Puget Sound area. And in the advertisements, they offered free land which is not true, because the people came out and they discovered they had to pay the Government settled price, a perfect climate, and the magnificent setting of Port Angeles. One of the groups that did accept were the Civil War veterans we know as the Michigan Soldiers Colony that settled on 40 lots on Lincoln Heights that were dedicated to them. Two of the most prominent men in Port Angeles history in addition to Norman Smith who had started this Second National City story - about this time, Thomas Aldwell and G. M. Lauridsen each wrote a history of the beginning and development of Port Angeles as they saw it. And since they had heard from the Citizens Association about the Second National City and Norman Smith was positive that the Second National City was what President Lincoln had intended when he signed those Acts that Norman's father had asked for, they included the Second National City part in their histories. And every history I have read of Port Angeles since then includes Port Angeles as a Second National City. As a historian, I am disturbed by some of their history, because none of them cited original sources. They didn't go back and see what Norman Smith - what authority for Norman Smith was. Remember, he combined two acts - a government Presidential proclamation and an Act of Congress - and so these authors have perpetuated the myth. And that's how it became to be engraved in bronze on a granite boulder on Lincoln Street. It is perfectly true that Port Angeles has been involved with the Federal Government since its inception. When I worked for the National Archives, one of the things that we were writing - I was, what would you call me, a researcher for a book about the National Archives. And the author said, see if you can find a town that has had a great deal of involvement with the National Government. He was thinking of a town in Oklahoma, and I said there's one even better than that - it's Port Angeles. And I researched, and Port Angeles has been touched 121 times by different agencies of the Federal Government. But, it was set aside as a Military and Lighthouse Reserve by President Lincoln, and that's true. It was open for survey and sale by the United States Government in 1863 - true. That it was the second town in the United States to be so opened for survey and sale is very problematic, as I said, there are at least nine others in western Washington that came under the same act of Government. But other purposes, that hospital, local government, and federal government on certain blocks had to be resolved for the Act of Congress is true. Remember when we tried to put the Library on the block that the old City Hall had been we had to go to Congress and get permission for a Library to be where it is - for the Carnegie Library to be where it is now. The Ocean View Cemetery was set aside for cemetery purposes by an Act of the United States Government - that's true. And Lincoln Park was set aside for park purposes by an Act of the United States Government - all that is true. 4 4843 As a historian, I have been trained to believe that you go to original sources to verify history's stories, and I cannot find any original source that proves beyond all doubt that Port Angeles is the Second National City, much as we wish it to be tree. And it's a nice story, and you can believe it if you like, but it's really not so. Do you have any questions?" 5 Exhibit "B" 4844 FINDINGS AND CONCLUSIONS IN SUPPORT OF MUNICIPAL CODE AMENDMENT - MCA 02-01 - CITY OF PORT ANGELES: Findings: Based on the information provided in the Department of Community Development Memorandum in support of Port Angeles Municipal Code Amendment MCA 02-01 dated December 11, 2002, including all information in the public record file, comments and testimony presented during the public hearings, the discussion and deliberation, the City of Port Angeles City Council hereby finds that: 1. The applicant, the City of Port Angeles Department of Community Development, proposed Municipal Code Amendment MCA 02-01 which would amend Section 17.34.050 of the Port Angeles Municipal Code to allow flexibility for development in the Industrial, Heavy zone City-wide. The amendment would remove side setback requirements in the zone while retaining the 30-foot setback from public rights-of- way and lot coverage standards. 2. City staff reviewed development codes for several Puget Sound Region municipalities, specifically, Olympia, Tacoma, Aubum, Enumclaw, and Lynnwood, to ascertain what the most common setbacks are considered to be in heavy industrial zones. This research revealed that many other municipalities do not set side setbacks in heavy industrial zones except where adjacent to, or within a set distance of, a residential, commercial, or business zone. 3. Per Section 17.96.100 PAMC Amendments, in determining if an amendment to these regulations is needed, the City Council shall give due consideration to the proper relationship of such amendment to the Comprehensive Plan and the City's entire zoning regulations. Any amendment adopted by the City Council may be modified from the form in which it is advertised within the limits necessary to relate properly such amendment or amendments to the Zoning Regulations. Final action on such modifications shall be subject to review and report of the Planning Commission prior to final passage by the City Council. 4. The City's Comprehensive Plan and Land Use Map have been reviewed with respect to the proposal. Growth Management Element Goal A and Policy A. 1; Land Use Element Map, Goal, Policies and Objectives Goal A, Policy A.2, and Objective 1; and Industrial Goals and Policies Goal G. and Policy G. 1 were found to be the most relevant with regard to the proposal. 5. Industrial, Heavy zoned properties are mainly found along the Harbor area and south and west of the William R. Fairchild International Airport. With that in mind, potential impacts of heavy industrial development to potential adjacent residential properties could be mitigated by the establishment of setbacks relative to residential 4845 Municipal Code Amendment - MCA 02-01 December 17, 2002 CITY OF PORT ANGELES or commercial uses in the event a IH zone exists adjacent to a residential or commercial property. 6. Review of Section 17.34.050 (Industrial Heavy IH Zone)of the Port Angeles Municipal Code indicated that there is no maximum height limitation in the IH zone. It is believed that the lack of such a standard in the IH zone may have been due to the historic mill uses which required very tall flues. In order to provide flexibility for development while still ensuring an expected development pattern, staff has proposed a height limitation consistent with the tallest IH buildings that exist in the City. The ability to allow an increase in the maximum height would be retained through the imposition of a conditional use permit. 7. The Port Angeles Fire Department reported that existing equipment can service a 75- foot tall structure from outside. Taller structures would require an interior approach. The Fire Marshall reported that buildings taller than 75 feet would be constructed under more strict development standards relative to fire protection. 8. Public notification of the intent to review setbacks in the Industrial, Heavy Zone was placed in the Peninsula Daily News on November 22, 2002. No written public comment was received during the comment period which ran until December 9, 2002. 9. The City of Port Angeles SEPA Responsible Official issued a Determination of NonSignificance on December 10, 2002, for the proposal. This satisfies the City's responsibility under the State Environmental Policy Act. 10. The Port Angeles Planning Commission conducted a public hearing on December 11, 2002, for consideration of the proposed amendment. Following the meeting, the Planning Commission forwarded a recommendation of approval of the proposed setback elimination and height standard to the City Council. 11. The City Council considered the proposed amendment to the Industrial, Heavy zone at a public hearing on December 17, 2002. Conclusions: Based on the information provided in the Department of Community Development Staff Report dated December 11, 2002, for MCA 02-01, including all information in the public record file, comments and testimony presented during the public hearing, the City Council discussion and deliberation, and the above listed findings, the City of Port Angeles City Council hereby concludes that: 1. As proposed, the Municipal Code Amendment is consistent with the goals and policies of the City's Comprehensive Plan including but not limited to: Growth Management Element Goal A, Policy 1 and Policy 1.g; Land Use Element Map 4846 Municipal Code Amendment - MCA 02-01 December 17, 2002 CITY OF PORT ANGELES Goal A, Policy A.2, and Objective A. 1; and Industrial Goals and Policies Goal G, and Policy G. 1. 2. The amendment will result in improved flexibility in the development of properties that are zoned Industrial, Heavy while relying on lot coverage and building standards to provide adequate separation from adjoining properties and uses. Development standards will be imposed relative to fire protection for buildings taller than 75'. 3. Wording has been added to Section 17.34.050 PAMC to ensure that a separation between uses will exist in the event that Industrial, Heavy properties are found adjacent to residential or commercial zones. 4. As proposed, the amendment is in the public use and interest. Adopted by the Port Angeles City Council at its meeting of December 17, 2002. Becky Ji L~~ity Ciev~ --- ~