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HomeMy WebLinkAbout03052024 CC MinutesCITY OF PORT ANGELES CITY COUNCIL Port Angeles, Washington March 5, 2024 This meeting was conducted as a hybrid meeting. CALL TO ORDER -REGULAR MEETING Mayor Dexter called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. ROLL CALL Members Present: Mayor Dexter, Deputy Mayor Carr, Council Members Meyer, Miller, Schromen-Wawrin, Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, Deputy City Manager Goings, Assistant City Attorney Cowgill, Clerk Martinez - Bailey, C. Delikat, B. Smith, S. Carrizosa, D. Sharp, and M. Healy. PLEDGE OF ALLEGIANCE Mayor Dexter led the Pledge of Allegiance to the Flag. CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. International Women's Day Proclamation - March 8" Mayor Dexter read the proclamation for International Women's Day, recognized March 8 as International Women's Day and presented the proclamation to Detective Sergeant Kori Malone of the Port Angeles Police Department. PUBLIC COMMENT Mayor Dexter provided instructions for public comment. Edna Peterson, city resident, urged Council to vote on option B and read the City Council Oath of Office. Rose Thompson, attending virtually, city resident, urged Council to vote on option B. Sean Coleman, city resident, urged the Council to vote for option B. Dan DuBuc, attending virtually, city resident, spoke about challenges in Port Angeles community and similar housing challenges in other communities. He urged the Council to vote for option B. Karen Rogers, city resident, urged the Council to vote for option B. Gail Cripe, attending virtually, city resident, attending virtually, urged the Council to vote for option C. Trisha Parker, city resident, urged the Council to vote for option B. Jeff Morfitt, attending virtually, city resident, urged the Council to vote for option C. Lindsay Fox, city resident, urged the Council to vote for option B. Paul Cunningham, attending virtually, city resident, urged the Council to vote for option B. Colin Young, city resident, spoke about the Planning Commission recommendation, sending support of option B. Jim McEntire, attending virtually, residing outside the city limits, and spoke on behalf of the Port Angeles Business Association and to the proposed ordinance. PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 Maureen Pfaff, residing outside city limits and a Port Angeles business owner, urged the Council to vote for option B. Lynn Bedford, did not specify residency, local business owner, urged the Council to vote for option B. Brooke Nelson, city resident, business owner, urged the Council to vote for option B. Janet Stevenson, did not specify residency, local business owner, urged the Council to vote for option B. James Taylor, city resident, urged the Council to vote for option B. Mark Edwards, attending virtually, city resident, urged the Council to vote for option A or B but to avoid option C. Matthew Moore, attending virtually, city resident, urged the Council to vote for option C. Susie Blake, attending virtually, city resident, urged the Council to vote for option B. Marolee Smith, city resident, urged the Council to vote for option B. Carolyn Wilcox, city resident, urged the Council to vote for option C. Laurel Gripe, city resident, urged the Council to vote for option C. Chelsea Rider, city resident, spoke against short-term rental, urged the Council to vote for option C. Daisy (did not provide a last name), city resident, urged the Council to vote for option C. The Mayor recessed the meeting for a break at 7:07 p.m. The meeting reconvened at 7:13 p.m. Ashlyn Emilani, city resident, urged the Council to vote for option B. Shireen Hutchison, city resident, urged the Council to vote for option B. Cosman, city resident, spoke about crime in Port Angeles, in opposition of Council regulation of short-term rentals and urged the Council to vote for option B. Skip Hutchison, city resident, urged the Council to vote for option B. Beverly Bagge, city resident, urged the Council to vote for option B. Dan Anderson, attending virtually, urged the Council to vote for option B. Marsha Massey, city resident, attending virtually, stated she is the Executive Director of Olympic Peninsula Visitors Bureau and urged the Council to vote for option B. Jodie Camia, city resident, short term rental owner, urged the Council to vote for option B. Caleb Gentry, city resident, urged the Council to vote for option B. Michelle Gentry, city resident, urged the Council to vote for option B. Victoria Jones, attending virtually, residing outside the city limits, city business owner, urged the Council to vote for option B. Jason Minnoch, residing outside the city limits, short-term rental owner, urged Council to vote for option B. Page 2 of 8 PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 Nathan Robbins, city resident, urged the Council to vote for option B. Karen Unger, city resident, urged the Council to vote for option B. Charlie Commeree, city resident, urged the Council to vote for option C. Shamber Twedt, city resident, urged the Council to vote for option B. Penny Sanders, city resident, urged the Council to vote for option B. Timoth Dalton, not a city resident, Clallam County employee, speaking on behalf of his own interests, urged the Council to vote for option B. Dayna Thorton, city resident, urged the Council to vote for option B. Paul Pendergrass, city resident, urged the Council to vote for option B. Able Huddler, residing outside city limits, spoke about his appreciation for BMX track and in favor of short-term rentals. The Mayor recessed the meeting for a break at 8:02 p.m. The meeting was reconvened at 8:08 p.m. Rebecca Turner, residing outside limits, urged the Council to vote for option B. CONSENT AGENDA At the request of Councilmember Schwab and a second from Miller, and after hearing no objection, Mayor Dexter added items H-1, I-1, J-1 and J-2 to the Consent Agenda as items E-9, E-10, E-11 and E-12. It was moved by Schwab and seconded by Meyer to approve the Consent Agenda to include: 1. City Council Minutes of February 6, 2024 2. Expenditure Report: From February 10, 2024 to February 23, 2024 in the amount of $3,535,400.88 3. Stryker Preventative Maintenance Contract for Lucas Mechanical CPR Devices / Authorize the City Manager to sign the three-year Preventative Maintenance Contract and make minor modifications as necessary. 4. Service Agreement for Technical Fire Code Review / Approve the attached agreement for as needed technical Fire Code plan review services with Townzen & Associates and authorize the City Manager to sign the agreement and make minor modifications as necessary. 5. City Pier Railing Replacement, CON- 2022-50 — Final Acceptance / Accept the City Pier Railing Replacement Project No. CON-2022-50 as complete and authorize staff to proceed with project closeout and release the retainage in the amount of $35, 067.65 upon receipt of all required clearances. 6. FY 2023-2025 Water Quality Stormwater Capacity Grant Agreement Contract No. WQSWCAP-2325- PoAnPW-00067 / Accept the Washington State Department of Ecology (WSDOE) FY 2023-2025 Stormwater Capacity Grant in the amount of $130, 000, authorize the City Manager to execute the WSDOE grant agreement WQSWCAP-2325-PoAnPW-00067, sign all required forms, and make minor modifications to the agreement, as necessary. 7. WWTP Facilities Fire Alarm System Replacement / Accept Convergint Technologies' proposal to upgrade and replace fire alarm systems in the amount of $70,568 per quotation #AP06621551P, and authorize the City Manager to execute and administer contracts to implement the proposal under WA State Department of Enterprise Services cooperative purchasing master agreement. 8. MOVED TO CONSENT AGENDA / H-1 TR-0209 Race Street Recreation Conservation Office Grant Application / 1) Pass the RCO resolution to reauthorizing the submission of an application for grant assistance, 2) Authorize the City Manager to sign and make payments from the RCO for Capital Facility Project TR-0209, and 3) authorize the City Manager to make any minor modifications. Page 3 of 8 PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 9. MOVED TO CONSENT AGENDA Parks, Recreation and Beautification Commission Appointments / Approve the recommendation of the Port Angeles Parks, Recreation & Beautification Commission by appointing the following candidates to fill the vacant Commission positions: 1.) Reappoint Paul Collins for a 4-year term beginning March 2024 through February 2028 2.) Appoint Samantha Fischbein for a 4-year term beginning March 2024 through February 2028. 10. MOVED TO CONSENT AGENDA 2024 Electrical Substations Ground Services Contract /Delegate to the City Manager authority to approve purchase contracts for the purchase of various type and size transformers as designated by the Light Operations Division during the 2024 fiscal year, without Council approval of each contract, and authorize the City Manager to sign all documents necessary to execute and administer the purchases in an amount not to exceed $252, 000 and make minor modifications as necessary. 11. MOVED TO CONSENT AGENDA Amended Transformer Purchase Authorization /Award a contract to Buck's Northwest Landscaping, LLC of Port Angeles, WA to provide ground maintenance for the Light Operations Substations and the Light Operations facility in the amount not to exceed amount of $104, 779.71 including taxes, and authorize the City Manager to sign the contract and make minor modifications as necessary. Motion carried 7-0. ORDINANCES NOT REQUIRING COUNCIL PUBLIC HEARINGS 1. An Ordinance Implementing New Regulations and Fees for Short -Term Lodging Operations in the City of Port Angeles Deputy City Manager Calvin Goings shared a presentation that spoke to proposed code changes, an implementation schedule which included information on public outreach and engagement. He spoke to the history of public engagement, Council action taken to present day, and alternatives provided to Council, Options A, B, and C as outlined in the City Council packet. In closing Deputy City Manager goings provided a slide that outline potential next steps Council could take relative to the proposed ordinance. Mayor Dexter conducted a first reading of the ordinance by title, entitled, ORDINANCE NO.3728 AN ORDINANCE of the City of Port Angeles, Washington implementing new regulations for short-term lodging operations; adopting a new Chapter 17.23 of the Port Angeles Municipal Code ("PAMC"), Short Term Rentals; adopting a new Chapter 17.24 PAMC, Bed and Breakfasts; repealing Chapter 17.18 PAMC; amending sections 14.36.010, 17.01.020, 17.08.015, 17.08.095, 17.10,040, 17.11.040, 17.12.040, 17.14.020, 17.15.020, 17.20.020, 17.25.040, and 17.94.065 pertaining to short-term lodging amendments; amending the Master Fee Schedule; adopting reporting requirements; providing for severability; establishing an effective date; and staying enforcement until a date certain. It was moved by Meyer and seconded by Schwab to: Adopt ordinance option B outlined in February 20th 2024 packet with a compromise adding provisions 3 and 4 from the March 51, 2024 packet on page G-2 as well as suggestions 7, 8, 10, 11, & 13 in attachment A starting in page G- 35; further more to grant priority licensing to those in who operate short term rentals in the current compliant zones. Motion failed 3-4, with Dexter, Meyer and Schwab in favor. A motion was made by Schromen-Wawrin and seconded by Suggs that would implement new regulations for short- term lodging operations, including Exhibits A through D, with changes from the version presented in the March 5 City Council packet. Council member Schromen-Wawrin clarified his motion would include stacked amendments. Council took a brief break. Council discussion followed. After significant amendments to the main motion, the motion on the table was: Change the effective date of the ordinance from July 1, 2024 to March 16, 2024, including, for example, 17.05.075. Page G-7, Section 16, amend the ordinance adding a new item B as follows: "SB 5334 Implementation. If Senate Bill 5334 becomes law, the Directors of Finance and Community and Economic Development will work with a Page 4 of 8 PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 subcommittee of the Council and Planning Commission to prepare options for review by the Planning Commission and possible local adoption by the Council." Page G-10, under section 17.23.050(A), add "For license renewal, the Director will waive the inspection requirement if an inspection was completed within the last five years and there have been no complaints related to the subject matter of the inspection since the last inspection." Add a new section 17.23.065 titled "STR Licenses to Incentivize Housing" as follows: The City provides several options to gain a STR license as an incentive to improve housing in the city. All the requirements of this Chapter apply to these licenses, including the one short-term rental license per Owner and non - transferability, except: STR licenses issued under this section are not subject to limitation by the Citywide Cap in section 17.23.060, but STR licenses issued under this section count as STR licenses in the quota allowed under the Citywide Cap. A property owner may be granted a short-term rental license anywhere in the city (except parks and industrial zones) if one of the following conditions are met: Blighted Property Restoration: The City will grant a short-term rental license to an owner who applies for a license for restoration of a blighted property. The STR license may be used for the restored property only. To qualify as a blighted property, it must meet both the definition of Blighted Property in Chapter 17.08, and also one of the following criteria: a. The property fails to qualify for conventional, FHA, VA or USDA financing, including rehab loans; b. The property is uninhabitable and has not been lawfully occupied for a period of one year or more; C. The property constitutes a threat to the public health, safety, or welfare as determined by the City, or d. The property has been associated with illegal drug activity during the previous twelve months. Add a new section 17.23.065 titled "STR Licenses to Incentivize Housing" as follows: New Infill Unit Construction: The City will grant a short-term license to an owner who applies for a license for constructing a new infill dwelling unit and using either the original or new unit as a long-term rental. The STR must be on the same parcel as the new unit. The STR license may be used on only one unit on the subject property. To qualify for this licensing exemption, all the following criteria must be met: a. All permits must be obtained through the City prior to construction of the new unit; b. When final inspection has been completed and signed off by the City, the owner may apply for a short-term rental license; C. The license may be used on either the original home or the new unit, but not both; d. The unit not used for STR must be leased for an initial period of one year or more with each tenant; e. A signed lease must be presented to the City with the application and each renewal for the STR license, and the lease must contain the complete text of 17.23.065(2) and its subsections; and f. If the long-term rental is not leased for 60 days or more, the short-term rental license is immediately void and non-renewable. Page G-10, under section 17.23.050(C), after "Inspection results may require minor building renovations or improvements" add "except modifications of exterior walls or windows if the egress met building standards at the time of construction." Page 5 of 8 PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 Page G-12, for the Citywide Cap at the bottom of the page, add "STR licenses issued in the Central Business District are not subject to limitation by the Citywide Cap, but STR licenses in the CBD do count as STR licenses in the quota allowed under the Citywide Cap." In 17.23.070(C), add "Except in the Commercial Business District zone," before "Only one short-term rental license will be issued per parcel." In 17.23.070(J), after "Short-term rentals are not permitted in any temporary, portable, or other structure not permitted by the City for permanent occupancy (e.g., boat, tent, yurt, RV, etc.)," add "except habitable structures that were used as STRs prior to March 16, 2024 that do not have kitchen facilities Page G-13, in 17.23.070(A), change "After July 1, 2024" to "After October 31, 2024" Page G-13, in 17.23.070(H), after the words "Events by guests are not allowed at any" insert "Type 2" Page G-13, in 17.23.070(0) add "No person may be a member, partner, director, officer, trustee, or any other form of owner, decisionmaker, or investor of more than one entity that has a STR license under this Chapter. For the provisions of this subsection, "LLC" means any entity, trust, or property ownership or leasing structure other than a natural person. Spouses and their marital community may only have one STR license." Page G-14, i 17.23.070, add a new subsection that says "A Type 1 Licensee may rent multiple rooms or spaces within their home under one STR business license, even if those rooms are advertised or listed and rented separately on a platform." Add to the Good Neighbor Policy a new subsection 17.23.090(J) that states "The City will revoke an STR license upon the third violation of this section by the licensee and their guests. STR licenses revoked for violation of this section may not be renewed, and the Owner may not apply for an STR license on any other property in the city for two years." Page G-14, in 17.23.080 on Noncompliant Short -Term Rentals, in subsection (13)(2) change "July 1, 2024" to "June 16, 2023", and in subsection (B)(3)(a) add "as defined in Chapter 17.08" Page G-16, at the end of 17.23.100 add a new subsection that says "Existing STR licenses are renewable regardless of whether the quota for licenses under the Citywide Cap has been met." Page G-30, definition section "E", definition of "Economic Hardship," change "65% area median income" to "80% area median income (AMI) including revenue from the short term rental". Page G-31, Section 17.08.040(G), in the definition of Guest, after the words "Any person or persons renting a short- term rental" insert "or bed and breakfast." Page G-32, in the definition of "Short-term Rental" strike "or designated lessee" and following "Room rentals are limited to" strike "numbers below those of congregate housing as defined by the International Code council (ICC), which requires substantial commercial upgrades to the residence for fire, life, and building safety." and replace with "two occupants per bedroom." And at the end of the definition of "Type II short-term rental" add "Rental occupancy is limited to two occupants per bedroom plus two people." Page G-34, in the fee schedule, strike the footnote "The Director may issue licenses for more than one year. The fee amount for an extended license will be prorated accordingly." Page G-29, definition of "Bed and breakfast" at the end of the first sentence add "or a bed and breakfast in operation prior to March 12, 2024." Due to the need to extend the meeting past 10:00 p.m. through Council action, it was moved by Dexter and seconded Meyer to: After the motion was made and amended, the final motion was considered: Extend the meeting until 10:20 pm. Page 6 of 8 PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 Motion carried 6-1 with Meyer opposed. After discussion, amendments made to the proposed ordinance, significant Council discussion, and hearing consensus from the Council that the motion would fail, Dexter made the motion and Schromen-Wawrin seconded to: Continue this meeting to Wednesday, March 6th, 2024 at 6:00 p.m. to be concluded by 8:00 p.m. Motion carried 6-1 with Miller opposed. The meeting continued at 6:00 p.m. on March 6, 2024. Manager West provided a status report on the amendments. Deputy Manager Goings spoke to capacity that addressed potential staffing challenges, financial impacts, and need for time to consider the proposed changes in the presented amended motion. It was moved by Miller and seconded by Meyer to: Postpone indefinitely, the current pending motion. Motion carried 4-3 with Carr, Schromen-Wawrin, and Suggs opposed. Miller made a motion and it was seconded by Meyer to: Adopt the ordinance staff recommend Option B (-) with no restrictions on location or number of type one short term rentals with the definition revised to strike the requirement for "common entrance". To include a city-wide cap of 200 or 2% whichever is higher on Type 2 short term rental, no restrictions on location. Ensure preference/priority STR license applications for those currently running compliant STRs. One unit per license; one license per person, one license per parcel. Remove option of getting type 1 license on unit that is not primary residence. Add "SB 5334 Implementation" to section 16 (p G-7) as written in suggestion 5 in the revised Attachment 1. Allow inspection frequency to be determined by CED staff in 1, 3, or 5 year increments (p G 10). Assign the Planning Commission to study and prepare a potential plan utilizing the "Incentivize Housing" suggestions to include the "blighted property restoration", "new infill unit construction', and "affordable housing rental' as a guide (as outlined in 3/5 motion) by November 1, 2024. Include staff suggestions 7-13 from the "revised attachment 1". Effective date July 1, 2024 Council discussion followed, where several amendments to the main motion were considered. It was moved by Schwab and seconded by Carr: To extend the meeting until 9:00 p.m. or as such time Council was finished with the motion on the table. Motion carried 4-3, with Meyer, Miller and Schromen-Wawrin opposed. Council returned to the motion on the table. Earlier in the meeting, a motion was made by Miller and seconded by Meyer. After amendment, Council considered the final motion: Adopt the ordinance staff recommend Option B (-) with no restrictions on location or number of type one short term rentals with the definition revised to strike the requirement for "common entrance". To include a city-wide cap of 200 or 2% whichever is higher on Type 2 short term rental, no restrictions on location. Page 7 of 8 PORT ANGELES CITY COUNCIL MEETING — March 5, 2024 Ensure preference/priority STR license applications for those currently running compliant STRs and a lottery for all completed STR license applications submitted by August 1, and if any license quotas remain, a second lottery on the first business day of the month for all completed STR applications submitted prior to that date. One unit per license; one license per person, one license per parcel. Remove option of getting type 1 license on unit that is not primary residence. Add "SB 5334 Implementation' to section 16 (p G-7) as written in suggestion 5 in the revised Attachment 1. Allow inspection frequency to be determined by CED staff in 1, 3, or 5 year increments (p G 10). Include staff suggestions 7-13 from the "revised attachment 1". Add to the Good Neighbor Policy a new subsection 17.23.090(J) that states "The City will revoke an STR license upon the third violation within a 36 month period of this section by the licensee and their guests. STR licenses revoked for violation of this section may not be renewed, and the Owner may not apply for an STR license on any other property in the city for two years." Effective date July 1, 2024 After a roll call vote, the motion carried 4-3 with Carr, Schromen-Wawrin and Suggs opposed. It was moved by Meyer and seconded by Schwab to: Extend the meeting by 4 and a half minutes. Motion carried 5-2 with Carr and Suggs opposed. Deputy City Manager Goings spoke to the adopted motion and addressed Miller as the motion maker. He asked if it was her intent as the motion maker, to include the adoption of exhibits A though D, and to also authorize the City Clerk to make grammar and formatting revisions to ensure internal consistency. Miller affirmed it was her intent to include these actions as identified in the City Council packet. Hearing no opposition to the clarification of the intent, the Mayor continued. Council discussed the motion made and accepted relative to: "extend the meeting until 9: 00 p.m. or as such time Council was finished with the motion on the table ". There was consensus from the Council that since this motion carried, there would be no need to complete the agenda which would have included a second public comment period, and council and staff reports. ADJOURNMENT Mayor Dexter adjourned the meeting at 8:43 p.m. Kalre Dexter, Mayor Page 8 of 8 Motion: I move to adopt the ordinance Staff Recommended Option B (-) with no restrictions on location or number of Type One short term rentals with the definition revised to strike the requirement for "common entrance". To include a city wide cap of 200 or 2% whichever is higher on Type 2 short term rental, no restrictions on location. Ensure preference/priority STR license applications for those currently running compliant STR. One unit per license; one license per person, one license per parcel Remove option of getting Type 1 license on unit that is not primary residence. Add "SB 5334 Implementation" to section 16 (p g7) as written in suggestion 5 in the revised Attachment 1 Allow inspection frequency to be determined by CED staff in 1,3 or 5 year increments (p g10) Assign the Planning Commission to study and prepare a potential plan utilizing the "Incentivize Housing" suggestions to include the "blighted property restoration", "new infill unit construction", and "affordable housing rental" as a guide (as outlined in 3/5 motion) by Nov 1, 2024 Include staff suggestions 7-13 from the "Revised attachment 1" Effective date July 1, 2024