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Council MIN 10-18-2016 Regular146, CITY OF Federal Way CITY COUNCIL REGULAR MEETING MINUTES Council Chambers - City Hall October 18, 2016 — 7:00 p.m. www.cityoffederalway.com 1. CALL MEETING TO ORDER Mayor Ferrell called the Regular Meeting to order at 7:07 p.m. City officials in attendance: Mayor Jim Ferrell, Deputy Mayor Jeanne Burbidge, Councilmember Lydia Assefa- Dawson, Councilmember Kelly Maloney, Councilmember Susan Honda, Councilmember Mark Koppang, Councilmember Martin Moore, and Councilmember Dini Duclos. City staff in attendance: Acting City Attorney Mark Orthmann and City Clerk Stephanie Courtney. 2. PLEDGE OF ALLEGIANCE Mayor Ferrell led the flag salute. DEPUTY MAYOR BURBIDGE MOVED TO AMEND THE AGENDA TO ADD COUNCIL DELIBERATIONS ON THE 2017 -2018 BUDGET TO COUNCIL BUSINESS ITEM 7B; COUNCILMEMBER MALONEY SECOND. The motion passed unanimously as follows: Deputy Mayor Burbidge yes Councilmember Koppang yes CouncilmemberAssefa - Dawson yes Councilmember Moore yes Councilmember Maloney yes Councilmember Duclos yes Councilmember Honda yes 3. PRESENTATIONS a. Mayor's Emerging Issues and Report • Violence Prevention Coalition Steering Committee Update Doug Baxter, Chair of the Violence Prevention Coalition Steering Committee, briefly updated Council on their work to date. He noted they have a community meeting scheduled for next Wednesday and are requesting an extension of the timeframe to report back to Council with recommendations. He feels this community meeting will be highly beneficial and include positive outcomes and direction for the Committee. • Report on Town Hall Meeting Re: IRG Property Federal Way City Council Regular Minutes Page 1 of 6 October 18, 2016 Mayor Ferrell noted he hosted a Town Hall style meeting at a local elementary school to allow for more open dialogue regarding the former Weyerhaeuser property and the proposed development. He felt the meeting was well attended and everyone had a chance to be heard. • Report on Community Events Mayor Ferrell reported on the recent community events including the Oktober Fest Event held at the Community Center on October 7; Advancing Leadership "Evening with the Stars" held on October 8; and also the Federal Way Symphony also on October 8. He encouraged everyone to attend the Federal Way Caregiving Network "Souper Supper" on October 28 at Steel Lake Presbyterian Church. 4. CITIZEN COMMENT Nancy Ooley asked how zoning works and shared concerns that changes will be done without the citizens' knowledge. Mayor Ferrell provided an explanation regarding zoning in general and specific to the former Weyerhaeuser property. Suzanne Vargo spoke about the petroleum pipeline that runs along the east portion of the former Weyerhaeuser property and the associated safety and environmental issues. Dana Hollaway questioned when light industrial was added to the zoning of the former Weyerhaeuser property since in her research she noted the word industrial is not in the concomitant agreement. Mayor Ferrell requested Acting City Attorney Mark Orthmann respond. Mr. Orthmann confirmed the term light industrial is not used in the concomitant agreement, but instead light processing as well as warehouse and distribution facilities. He also provided information regarding of the property directly west of North Lake. Tom Messmer clarified the pipeline runs adjacent to Interstate 5 and is over 2,000 feet away from any proposed projects. He also outlined the financial benefits that will come from the property taxes paid on the proposed buildings. Julie Cleary spoke to the beauty of the landscape and the boldness of Weyerhaeuser's planning and design. She also shared a historical account of the development process. Toni Findt expressed appreciation for the Town Hall Meeting including the open dialogue and being acknowledged as a large concerned body. She shared that the dangers of ammonia is not acceptable. Margaret Nelson shared that location of the Orca Bay will be detrimental to finding a tenant for the former Weyerhaeuser Headquarter Building. She suggested using a graphic artist to illustrate the visual impact the Orca Bay building will bring. Bob Woolley said that the only action taken regarding the condition of Lake Jeane has been from the King County Tax Assessors Office. A refund has been granted for the taxes paid in 2015 due to the fact it is no longer considered a recreational lake. Mayor Ferrell noted the lake was tested on a weekly basis all summer and results never came back at the toxic level. Federal Way City Council Regular Minutes Page 2 of 6 October 18, 2016 Geoffrey Hastings shared gratitude for the Town Hall Meeting and thought it went well. He wanted to know what could be done in order to get matching -fund grants to purchase some of the land back from IRG. Nancy Ooley (second comment) asked questions regarding the public process Mayor Ferrell references. Mayor Ferrell and Acting Community Development Director Scott Sproul provided a brief response. Kristin Jones indicated that this issue is much bigger than just North Lake. She lives near Lake Killarney and Lake Geneva is concerned about how much more noise and pollution will be headed their way. Tracie Mawolides read a newspaper article in the Federal Way Mirror regarding an ongoing investigation. Mayor Ferrell shared that the article referenced is in regards to the former Community Development Director making allegations against our Chief of Staff. An independent third party law firm is looking into this matter and in a next few weeks a report will come out. Ken Christensen noted that the green roof design of the Weyerhaeuser building was lauded for and reduced the impact of the building on the surrounding environment. He questioned whether this has been considered for the proposed buildings. 5. CONSENT AGENDA Items listed below have been previously reviewed in their entirety by a Council Committee of three members and brought before full Council for approval; all items are enacted by one motion. Individual items may be removed by a Councilmember for separate discussion and subsequent motion. a. Minutes: September 28, 2016 Special Meeting; September 29, Special Meeting; October 4, 2016 Special Meeting b. Interlocal Cooperative Agreement between the Cities of Auburn, Federal Way, Kent, Renton, Seattle, Tukwila, and the Port of Seattle for the Valley Narcotics Enforcement Team c. Purchase of Fireworks and Ammunition Disposal Trailer from Hurd's Custom Machinery, Inc. DEPUTY MAYOR BURBIDGE MOVED APPROVAL OF THE CONSENT AGENDA AS PRESENTED; COUNCILMEMBER MOORE SECOND. The motion passed unanimously as follows: Deputy Mayor Burbidge yes Councilmember Koppang yes Councilmember Assefa- Dawson yes Councilmember Moore yes Councilmember Maloney yes Councilmember Duclos yes Councilmember Honda yes 6. PUBLIC HEARING a. 2017 -2018 Biennial Budget /Property Tax Levy as required by RCW 35A.34 Ade Ariwoola reviewed RCW 35A.34.100 regarding notice of the availability of the budget document and Public Hearing requirements. He also noted the RCW requirements for noticing the budget and reviewed the budget calendar and process to date regarding budget meetings. Federal Way City Council Regular Minutes Page 3 of 6 October 18, 2016 Councilmembers discussed timing and review of the proposed budget as amended. Council consensus was to allow additional time for Council Deliberation of the budget prior to the proposed first reading of the Budget Ordinance on November 1, 2016. Finance Director Ariwoola also noted the Property Tax rate is tied to the inflation rate. He reported an additional Council Resolution may need to be passed in order to show a substantial need to pass a 1%. Citizen Comment: Julie Cleary noted the City of Kent recently passed a B &O tax and it surpassed what they thought they would take in. She urged Council to look at that option. COUNCILMEMBER DUCLOS MOVED TO CONTINUE THE PUBLIC HEARING ON THE PROPOSED 2017 -2018 BIENNIAL BUDGET AND THE 2017 PROPERTY TAX RATE TO THE NOVEMBER 1, 2016 MEETING; COUNCILMEMBER KOPPANG SECOND. The motion passed unanimously as follows: Deputy Mayor Burbidge yes Councilmember Koppang yes Councilmember Assefa- Dawson yes Councilmember Moore yes Councilmember Maloney yes Councilmember Duclos yes Councilmember Honda yes 7. COUNCIL BUSINESS a. Multi - Family Housing Moratorium Update — Principal Planner Margaret Clark Principal Planner Margaret Clark, briefed Council on the Multi - Family Housing Moratorium the Council adopted on June 7, 2016. The moratorium covers all multi - family and senior housing except for duplexes, triplexes, accessory dwelling units and townhouses. Council enacted the moratorium to give staff time to review multi - family zoning and development regulations to determine if they are appropriate for the type of multi - family development that Council envisions for the city. Ms. Clark noted after briefing the Planning Commission on October 5; staff is currently requesting feedback on the proposed changes to the regulations. She reviewed research done to date and updated Council on issues regarding the Comprehensive Plan and Growth Management Act requirements. Suggested amendments outlined in the staff report would apply to multi - family housing with more than 100 units. These would include: • Parking related amendments • Amendments related to improving livability • Adopt solid -waste related requirements • Security related amendments • Require impact fees to offset the need for calls for service (Police and Fire) Ms. Clark also briefly reported on the School District Impact Fees which were increased in 2016 from $1,834 to $9,273 per unit; and adjusted in 2017 to $8,386. Community Services Manager Jeff Watson also added feedback to the discussion of unintended consequences for those seeking low and affordable housing. He noted the Courts have held that the Federal Way City Council Regular Minutes Page 4 of 6 October 18, 2016 Fair Housing Act (FHA) may be violated where the effect of a land use or zoning decision discriminates against minorities that are deprived of housing opportunities. It is also not necessary to prove land use officials intended to discriminate to be in violation of the FHA. Councilmember thanked Ms. Clark and Mr. Watson for their presentation and the amount of information. They asked questions regarding targets and current levels within our city in comparison to neighboring communities. Ms. Clark noted all code amendments are sent to the Department of Commerce who transmits them to other agencies including PSRC for review. If changes made to the zoning code result in a decrease in the capacity for new or residential units and the city is unable to meet housing targets; the city may become less competitive in obtaining federal and state grants. b. Council Deliberations /Questions — Budget ADDED ITEM Mayor Ferrell resumed the earlier budget deliberations discussion from the Special Meeting held prior to the Regular Meeting. Council consensus is in favor of hiring more Police Officers. Discussion centered on funding options including business registration fees based on employee count and whether this process would be self- monitored or require an additional FTE. It was also noted that the Utility Tax has a current franchise agreement in place, which would need to be negotiated. Councilmembers also agreed the lack of a B &O tax is an Economic Development incentive to get businesses to relocate to the city. Council asked for additional information and analysis on the business license fees for other cities in the region are using to compare with the proposal; and would like to maintain the fund balance to protect the bond rating. DEPUTY MAYOR BURBIDGE MOVED TO SUSPEND COUNCIL RULES TO ALLOW THE MEETING TO CONTINUE PAST THE HOUR OF 10:00 P.M.; COUNCILMEMBER DUCLOS SECOND. The motion passed unanimously as follows: Deputy Mayor Burbidge yes Councilmember Koppang yes Councilmember Assefa- Dawson yes Councilmember Moore yes Councilmember Maloney yes Councilmember Duclos yes Councilmember Honda yes 8. COUNCIL REPORTS Councilmember Assefa- Dawson and Councilmember Maloney had no report. Councilmember Honda thanked Parks and Recreation Coordinator Kevin Hutchinson for a great Oktoberfest event last Friday. Councilmember Koppang stated he feels Lake Jeane continues to be an issue of concern for him and he does not like to see property values diminished due to the inaction of others. He would like to see something done to provide relief to the lakeside residents. He is looking forward to the FWCCN Souper Supper on October 28 which supports a great organization in our community. Councilmember Moore feels this has been the most challenging year in office. He continues to voice his concern with the Camp Kilworth property and any tree cutting that may be proposed. He thanked staff in Community Development for the technical letter that went out regarding the Preferred Freezer project. He feels the citizens' questions and concerns were heard and addressed. He thanked Margaret Clark for her presentation earlier this evening as well. Federal Way City Council Regular Minutes Page 5 of 6 October 18, 2016 Councilmember Duclos thanked the North Lake residents who are attending each Council Meeting. She feels everyone is respectful and asking logical and intelligent questions. She feels this is a tough issue and she thanked everyone for how they handle and present themselves. She is also concerned about the ongoing issues at Lake Jeane. She noted the next meeting of the Finance, Economic Development, Regional Affairs Committee will be next Tuesday in the Hylebos Room. Deputy Mayor Burbidge reported on her attendance at a recent South County Area Transportation Board Meeting where discussion took place on a proposed airport expansion. She noted communities adjacent to the airport such as Burien are very concerned. She suggested contacting the Port and FAA for more information on the process. They also discussed the Boards Legislative Agenda and asked for the city's 2017 Legislative Agendas. She attended multiple events in the community including Oktoberfest and the Symphony fundraiser. She thanked the hard working staff and appreciates all they do. Mayor Ferrell noted Community Relations Coordinator Steve McNey is working on the Legislative Agenda and will be in contact with each Councilmember. Councilmember Honda clarified tickets for the "Souper Supper" are $30 (as it is a fundraiser) for the FWCCN. She again noted it is a great event and organization. 9. EXECUTIVE SESSION At 10:06 p.m. Mayor Ferrell announced the Council would be recessing into Executive Session for the purpose of discussing Property Acquisition pursuant to RCW 42.30.110(b); and Potential Litigation pursuant to RCW 42.30.110(1)(i). • Property Acquisition Pursuant to RCW 42.30.110(1)(b) • Potential Litigation Pursuant to RCW 42.30.110(1)(i) At 10:34 Public Works Director Salloum announced Council will be extending an additional 15 minutes. At 10:47 Public Works Director Salloum announced Council will be extending an additional 15 minutes. Council returned to Chambers at 11:06 p.m. 10. ADJOURNMENT There being nothing further on the agenda; Mayor Ferrell adjourned the Regular Meeting at 11:06 p.m. Attest: Approved by Council: I1 101'U1(p Federal Way City Council Regular Minutes Page 6 of 6 October 18, 2016