REPORT TO THE CITY COUNCIL rd Avenue NE, Woodinville, WA VVWW.CI.WOODINVILLE.WA.US

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1 CITY OF WOODINVILLE, WA REPORT TO THE CITY COUNCIL rd Avenue NE, Woodinville, WA VVWW.CI.WOODINVILLE.WA.US To: Honorable City Council Date: 10/19/2010 From: Richard A. Leahy, City Manager By: Jennifer Kuhn, City Clerk Subject: Approval of Minutes for September 21, 2010 ISSUE: Shall the City Council approve the Meeting Minutes of September 21, RECOMMENDATION: To approve the Meeting Minutes of September 21, 2010, as presented. POLICY DECISIONS: Pursuant to RCW 35A and our rules of procedure, it is necessary to keep true and accurate records of the proceedings of the Woodinville City Council Meetings. The attached draft Meeting Minutes were prepared by the City Clerk to describe the discussions and decisions made by the City Council at the above meeting. Prior to entering the Meeting Minutes into the permanent record, the City Council is required to review the Minutes, make any necessary corrections, and to approve the Minutes. ALTERNATIVES: 1. Approve the City Council Meeting Minutes of September 21, 2010, as presented. 2. Approve the City Council Meeting Minutes of September 21, 2010, as amended. 3. Abstain from voting for those meeting(s) a Councilmember was absent. RECOMMENDED MOTION: I MOVE THAT THE CITY COUNCIL APPROVE THE CITY COUNCIL MEETING MINUTES OF SEPTEMBER 21, 2010, AS PRESENTED. Attachment: A- Regular meeting minutes of September 21,

2 CITY OF WOODINVILLE CITY COUNCIL Regular Meeting Attachment 1 Tuesday September 21, :00 p.m. Council Chambers CALL TO ORDER The regular meeting for the Woodinville City Council was called to order at 7:00 p.m. by Mayor Price. ROLL CALL PRESENT: Mayor Price, Deputy Mayor Talmas, Councilmenaber Glickman, Councilmember Bauman, Councilmember Hageman, Councilmember Boundy-Sanders, and Councilmember Aspen. Also present were: Richard Leahy, City Manager; Jim Katica, Finance Director; Hal Hart, Planning & Development Services Director; Tom Hansen, Public Works Director; Alexandra Miller, Assist. to the City Manager; Jennifer Kuhn, City Clerk; Greg Rubstello, City Attorney; Zach Schmitz, Management Analyst; and Eduard Zanidache, Cable TV Operator. Deputy Mayor Talmas moved to excuse Councilmember Hageman. Councilmember Aspen seconded the motion. VOTE: All voted in favor of the motion and the motion carried (6-0). Councilmember Hageman was not present for the vote. FLAG SALUTE Mayor Price led the flag salute. APPROVAL OF AGENDA ORDER AND CONTENT Deputy Mayor Talmas moved to, approve the agenda in order and content, noting the revised agenda. Councilmember 13auman seconded the motion. VOTE: All voted in favor of the motion and the motion carried (6-0). Councilmember Hageman ' ageman was not present for the vote. Mayor Price noted the addition of an Executive Session for tonight's meeting. PUBLIC COMMENTS Bob Simpson, Woodinville (inside city limits) Hero House, a clubhouse in Bellevue that supports adults with mental illness, requested the Council fund their request for $2,999 from the Human Services budget. Jesse Levine, Redmond, described services he receives from Hero House and urged the Council to consider their funding request. Ian Jones, Woodinville (inside city limits), described how Hero House helped him recover from mental illness, 2

3 enabling him to earn a BA in psychology from the UW. He now works with development disabled children and adults. He encouraged the Council to fund their request. Erica Levine, Woodinville (inside city limits), provided written materials. Amy Moe, Woodinville (inside city limits), North Urban Human Services Alliance, described their mission to build a community's capacity to respond to human service needs in North King County in the cities of Shoreline, Lake Forest Park, Kenmore, Woodinville and Bothell. She urged the Council to maintain funding for human services at current levels and to utilize the recently completed Needs Report when allocating funds. She provided a copy of the Needs Report. Karen Jessen, Woodinville (inside city limits), suggested the City lease rather than purchase a Public Works facility. She cited benefits such as immediate availability and the ability to preserve cash. Dave Henry, Woodinville (inside city limits), thanked staff for the changes made to the traffic signal at 156th. He referred to the speed bumps installed on Woodinville-Duvall Road, commenting they are not effective. Bob Harmen, Woodinville (inside city limits), expressed concern with the 2-6" margin created between the newly installed asphalt and the gravel on 202nd. He was also concerned;with the solution to install soil rather than gravel to even out the slope. He feared erosion would lead to crumbling of the asphalt. City Manager Rich Leahy responded staff planned to talk with residents and provide either top soil or gravel depending on their preference. CONSENT CALENDAR Deputy Mayor Talmas moved to approve Consent Calendar Items 1, 2, and 3. Councilmember Aspen seconded the motion. VOTE: All voted in favor of the motion and the motion carried (6-0). Councilmember Hageman was not present for the vote. 1. Approval of September 21, 2010 Claims: Checks through in the amount of $127, Approval of September 21, 2010 Payroll: Checks , , and for $204, Referral of the Human Services Applications City Council referred the Human Services Grant Applications to the City Council Finance Committee for preliminary evaluation and ranking recommendations. STUDY SESSION ITEMS FOR DISCUSSION OR REVIEW 4. Notification of Adoption of the 2009 King County Surface Water Manual Public Works Director Torn Hansen presented staffs recommendation for the Council to accept notification of the administrative adoption of the 2009 King County Surface Water Design Manual. He referred to WMC 2.31 which addresses amendment of administrative rules. The National Pollutant Discharge Elimination System (NPDES) Phase II Permit requires the City to adopt an equivalent manual to the 2005 Department of Ecology Surface Water Manual by August Adopting the 2009 King County SWM through the administrative process is the fastest method of meeting this requirement. He reviewed key changes with the adoption of King County SWM. Discussion followed regarding discharge of surface water runoff and differences between the 2005 DOE Surface Water Manual and 2009 King County SWM. 3

4 Councilmember Bauman moved that the City Council accept notification of the administrative adoption of the 2009 King County Surface Water Design Manual. Deputy Mayor Talmas seconded the motion. VOTE: All voted in favor of the motion and the motion carried (6-0). Councilmember Hageman was not present for the vote. Mayor Price declared a brief recess. (Councilmember Hageman arrived at 7:31 p.m.) 5. NEW ITEM: Discussion of Support for Freight Service on Eastside Rail Corridor Mr. Leahy explained the Council requested this item be added to the agenda to determine whether additional action is warranted. GNP Railway has submitted an application to establish freight service on the eastside rail corridor. A letter dated September 13, 2010 from Bellevue, Kirkland, Redmond and Renton was submitted to the US Surface Transportation Board regarding freight service on the rail line south of Woodinville. He reviewed the City's previous position expressed via Resolution 384 adopted in April 2010 expressing support for dual rails and trails use of the corridor, which could include commuter rail, excursion rail and freight rail. He reviewed ownership of the corridor and concerns about impacts of freight rail service on transportation systems, public safety and quality of life. Discussion followed regarding legal and political issues associated with the application, federal legislation governing railroad corridors, petition submitted by GNP Railway, and lease of the northern portion of the corridor to GNP by the Port of Seattle. The Council requested further information regarding the lease and how it affects Woodinville. The Council also requested a copy of GNP's application. 6. Continued Public Hearing: and First Reading of Ordinance No. 489: 2009 Annual Docket Downtown Zoning Code / City Map Amendment Deputy Mayor Talmas moved to open the continued public hearing on Downtown Zoning Code and Map Amendments, Ordinance No Councilmember Aspen seconded the motion. Deputy Mayor Talmas moved to reopen the public testimony portion of the public hearing on Ordinance No Councilmember Bauman seconded the motion. Mr. Hart explained how zoning regulates various physical dimensions of buildings. He reviewed how Floor Area Ratio is calculated and provided examples of 1.0 and 2.0 FAR. He also provided development scenarios for the Pedestrian Core Design District using FAR and dwelling unit per acre. He reviewed current unit counts, 2006 Buildable Lands additional capacity and capacity with Downtown Master Plan implementation for single family, multi-family and mixed use. He described restrictions on residential unit/total development based on concurrency. He provided a mixed use development example with residential FAR of 2.0 on a 1 acre site. He commented on the trend toward smaller units. Mr. Hart responded to Council questions regarding whether the City could establish a minimum dwelling unit size, increased density via smaller dwelling units, vehicle trips per dwelling unit, concurrency requirements to address traffic impacts of a development, ability for the Council to change Design District boundaries, and requirement for a public hearing if the Council created new districts. Dave Henry, Woodinville (inside city limits), asked whether developers were paying to research changes to the Downtown Plan. He suggested the Council abandon the Downtown Plan and focus on existing problems such as traffic, infrastructure, public safety and managing growth 4

5 Jens Molbak, representing Molbak's, commented on the use of concunency to limit growth. He conunented that staff's depiction of development under FAR was an extreme, unrealistic case as it was unlikely all acreage in the Pedestrian Core would redevelop 100% residential and there were no accommodations made for parking in staff s examples. Andrew Maxx, Woodinville (inside city limits), suggested averaging the square footage per unit. He suggested consideration be given to the City as a place to live, work and play and therefore more pedestrian friendly. He cited Amsterdam and Whistler, BC as examples. He recommended the Council approve the amendments and make changes in the future when necessary. Trish Knox, Woodinville (outside city limits), read her letter to the editor citing the difficulty for an average citizen to compete with developers, business owners and political officials with regard to quality of life in their neighborhood, community and town. She invited the community to participate in Transition Woodinville at the Sustainability Fair at 21 Acres on October 22 and this weekend at Olympic Nursery. Hank Stecker, Woodinville (inside city limits), spoke in support of the development that CamWest proposed for the Canterbury site, noting they had not requested 60-foot building heights or 150,000 square foot retail. He expressed concern with traffic volumes created by 60-foot buildings and 150,000 square foot retail. Nate Dreon, Ilahie Holdings, representing Woodinville Town Center, encouraged the Council to adopt the interim ordinance, specifically the 75,000 square foot tenant space,limit He commented on the closure of QFC, their interest in modernizing the Center and grocery store sizes up to 75,000 square feet. Phyllis Keller, Woodinville (inside city limits), agreed with Mr. Stecker's comments. She did not support 150,000 square foot or 6-story buildings and preferred 3-4 story buildings. Jens Molbak thanked the Council for adopting the interim ordinance. With regard to fears of a Walmart with a 150,000 square foot building size, he advised Molbak's is only slightly less than 150,000 square feet. With regard to Mr. Stecker's comments regarding CamWest's development of the Canterbury site, he pointed out that development did not occur and the economy has changed. The current 45-foot building height limit has existed since incorporation and development has not occurred. Dave Henry questioned the motivation for the Downtown Plan, whether it was just tax revenue. He expressed concern the City's existing infrastructure could not accommodate current traffic volumes. Jon Sambrook, Woodinville (inside city limits), expressed concern for individual rights, emphasizing that without property rights there are no individual rights. He was also concerned with a process of voting away the value of land because citizens did not like the options that property owners have for development. Deputy Mayor Talmas moved to close the public testimony portion of the public hearing. Councilmember Aspen seconded the motion. Mayor Price declared a 10 minute recess. Discussion followed regarding a suggestion that the Council review the "scorecard" of issues and add the necessary amendments to interim Ordinance 505, a suggestion to review the scorecard and the code language on pages 5-7, the difference between what citizens want and what developers want, how to encourage development and not end up with large buildings, and the Council's responsibility to the citizenry. Councilmember Boundy-Sanders moved to restore scorecard Items 4f (Exceptional Design Criteria) and 4g (Design Standards for Large Format Retail Stores) to Ordinance 489 as well as referring them back to the Planning Commission. Councilmember Bauman seconded the motion. 5

6 Deputy Mayor Talmas moved to specify that scorecard Item 4g apply to large format stores over 30,000 square feet and delete definitions 6 (special accommodation of transit services), 8 (environmental certification of all structures LEED) and 9 (provide additional affordable housing above the minimum requirement) from scorecard Item 4f. The motion was not seconded, motion lost. Discussion continued regarding concern developers would select the easiest/least expensive criteria/definition in Item 4f, a preference to include environmental certification (LEED) as a criteria/definition of exceptional design, establishing a threshold for affordable housing, and providing specificity with regard to incentives. VOTE: Upon roll call, motion carried (4-3), Councilmembers Bauman, Hageman, Boundy-Sanders and Aspen in favor; and Councilmember Glickman and Deputy Mayor Talmas and Mayor Price opposed. Councilmember Glickman reported on changes that have occurred since the Downtown Master Plan was drafted, 1) loss of the sales tax in the Industrial Zone due to streamlined sales tax, 2) loss of revenue due to the economy which Downtown Plan does not address, and 3) wineries have flourished which the City's zoning should support. He commented on traffic delays on 175th and suggested providing access to the north end of LBC to improve retail viability, developing a human/pedestrian scale downtown with 3-4 story buildings with small scale retail and uses that support the wine community, widening Woodinville-Snohomish Road and encouraging retail in that area. He summarized the Master Plan no longer fit the City or the economy and he recommended the Council develop a common vision. Discussion followed regarding grid roads in the Transportation Plan; inability to acquire land necessary to implement the Transportation Plan; the need for an economist report before making decisions on downtown zoning; growth scenarios and modeling done as part of the Transportation Master Plan; exemption of intersections on SR 202 from concurrency; creating a vibrant, pedestrian friendly downtown; concern with starting over on the Downtown Plan; constructing grid roads to assist traffic flow; economic cycles; the danger of exceeding the City's growth targets; protecting Woodinville from worst case scenario development; and decisions that remain with regard to building heights, store size and formula stores. Councilmember Bauman moved to adopt the Planning Commission's recommendation regarding building heights in the Pedestrian Core Design District of 39 foot base, 45 feet with incentives and 57 feet with structured parking. Councilmember Aspen seconded the motion. Discussion followed regarding concern with heights above 4 floors in the Pedestrian Core. VOTE: Upon roll call, motion carried (5-2), Councilmembers Bauman, Hageman, Boundy-Sanders and Aspen and Mayor Price in favor; and Councilmember Glickman and Deputy Mayor Talmas opposed. Councilmember Hageman moved that scorecard Item 2c (Establish a new Design District (or overlay) called "Wine Country Gateway" that includes that portion of the currently proposed East Frame Design District south of NE 17th Street and west of 140th Avenue NE) be referred to the Planning Commission for further study. Councilmember Bauman seconded the motion. Discussion followed regarding concern with expanding the boundaries of the current East Frame Design District, limiting formula stores in the Wine Country Gateway District to 30,000 square feet, and intent of the motion for the Planning Commission to consider the concept rather than the Council providing direction. VOTE: Upon roll call, motion carried (5-2), Councilmembers Glickman, Bauman, Hageman and Boundy- Sanders and Deputy Mayor Talmas in favor; and Mayor Price and Councilmember Aspen opposed. [This decision was later changed via action taken under Reports of Councilmembers.] The Council discussed and reached consensus on the following scorecard items: - Adopt Item 3c (3rd, 4th and 5th story incentives), removing affordable housing and renewable energy as 4th floor incentives (6-1) - Remove Item 4h (require structured parking for development exceeding 40,000/50,000 GSF) (7-0) - Remove Item 4i (regulate building size by lot size, landscaping, and site development requirements (5-2) 6

7 - Remove Item 4j (increase the size limits for stores that primarily sell nursery stock/live plants and other products related to gardening) - Item 6a: Require residential in the Pedestrian Core District (5-2) - Remove Items 6b (establish residential unit and/or development cap) and 6e (establish maximum limit for residential units allowed in CBD that complies with GMA/infrastructure support) (7-0) - Retain Item 6d (retain the existing 36/48 units per acre to calculate residential density and not adopt the proposed FAR method) (4-3) - Adopt Item 7a (add residential lobby/foyer as an allowed use on the ground floor fronting a public street) Remove Item 7b (allow police storefront substations in all/some design districts (7-0). Staff to provide information in the future regarding allowing public uses in all districts with a CUP. - Remove Item 7c (remove furniture & home furnishing stores as an allowed use in the CBD zone within the Pedestrian Core and Civic/Gateway Design District as recommended by the Planning Commission (7-0) - Remove Item 7d (add a definition for format store) (4-1-2) - Remove Item 7e (restrict the number of formula stores/restaurants) (4-3) - Remove Item 7f (require formula stores/restaurants approval subject to Planning Commission Design Review Subcommittee review) (4-3) - Postpone Item 7g (remove undesired uses from Permitted Uses) to a later date (7-0) - Item 2a: Reconsider boundary of Transition Design District boundary as proposed by Planning Commission and retain the alignment at 140th (5-1-1) - Retain the existing height limit in the Transition Zone (4-3) - Adopt gross square footage language in Interim Ordinance 505 (6-0-1) Councilmember Boundy-Sanders submitted an exhibit regarding Seattle's commercial and residential FAR. Display boards referred to during the above discussion were added as an exhibit. Mr. Hart pointed out elimination of FAR created an inconsistency with the Comprehensive Plan. Councilmember Glickman moved to continue the public hearing for Ordinance 489 to September 28, 2010 in the Woodinville City Hall Council Chambers at 7 PM or as soon thereafter as may be heard. Deputy Mayor Talmas seconded the motion. First reading was tentatively scheduled on the October 5 agenda and second reading and adoption on the October 19 agenda. PUBLIC COMMENTS Phyllis Keller, Woodinville (inside city limits), reported the King County Landmarks Commission plan to meet in the Council Chambers on September 23 to review the nomination for landmark status for the DeYoung House. Jens Molbak, representing Molbak's, suggested staff provide the Council more accurate information regarding residential FAR that factored in parking, setbacks, etc. He encouraged the Council to reverse their vote on scorecard Item 2c (establish a new Design District called "Wine Country Gateway"), expressing frustration with the lack of certainty for the Molbak's property. REPORTS OF CITY MANAGER Mr. Leahy reported due to the late hour, the Executive Session was postponed until next week. REPORTS OF COUNCILMEMBERS Councilmembers discussed the boundary of the proposed Wine Country Gateway. It was the consensus of the Council to remove scorecard Item 2c from the list of issues. 7

8 Councilmember Bauman reported the keynote speakers at the Woodinville Chamber of Commerce luncheon were Jens Molbak, Molbak's; Mike Stevens, Brian Carter Cellars; Mike Summerfield, Big Daddy's; and James Simkins, Willows Lodge. They encouraged Woodinville to embrace wine, garden and culinary experiences and make the most of downtown to attract and retain businesses. She inquired about funds from the Hotel/Motel Tax for promoting tourism. Councilmember Bauman relayed a concern expressed by the owner of the Northshore Sports Complex with the fee for a CUP and a $14,000 traffic impact fee assessed to move her business a few doors away. Councilmember Hageman expressed his thanks to the Chamber for organizing the speakers at the luncheon. Councilmember Boundy-Sanders reported the docent at Cottage Lake Creek on October 3 and 10 has been cancelled. She suggested the Council may want to reconsider its decision to establish a 60-foot height limit in the East Frame District as the Master Plan contains a 57-foot height limit. She relayed her concern that the decisions the Council has made will lead to chain stores rather than a tourist-friendly downtown. Mayor Price apologized to the business community and citizens for the length of time it has taken the Council to review the Downtown Zoning Code and Map Amendments. ADJOURNMENT Councilmember Aspen moved adjourn the meeting. Councilmember Hageman seconded the motion. The meeting was adjourned at 12:37 a.m. Jennifer Kuhn City Clerk/CMC 8