Kirkland City Council Special Meeting Summary – August 3, 2022
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Kirkland City Council Special Meeting Summary – August 3, 2022
The Kirkland City Council convened a hybrid special meeting on Wednesday, August 3, 2022, beginning with a 5:30 p.m. study session and transitioning to a regular meeting at approximately 7:30 p.m. All seven council members were present, and the meeting adjourned at 12:00 a.m. after an executive session on litigation. Major actions included adoption of a tenant protection ordinance (without late fee caps), approval of the Parks, Recreation and Open Space (PROS) Plan draft amendments, creation of a Parks Funding Exploratory Committee, and direction to study a seasonal or full closure of Park Lane.
Study Session
- 2023-2024 Preliminary Utility Rates Discussion: Utility staff and the Cascade Water Alliance (CWA) presented preliminary rate proposals for solid waste, water, sewer, and surface water. CWA proposed a 2.2% annual increase in member charges, though Kirkland’s increase was higher (8.25% for 2023, 2.2% for 2024). Staff highlighted challenges including inflation, capital needs, and a reduced solid waste cash reserve. Councilmembers discussed the reserve and requested future comparisons with Northshore Utility District.
- Tax Increment Financing (TIF) for NE 85th Street Station Area: Consultant Bob Stowe presented a strategy to use tax increment financing to fund three infrastructure projects: a sewer main ($16 million), Forbes Lake Park ($12 million), and 124th Avenue NE roadway widening ($30 million). The proposed tax increment area has an assessed valuation of $127 million, below the $200 million cap. Council provided feedback and asked for more detailed risk and sequencing analysis in the next phase.
Public Comments & Testimony
- Several downtown business owners, including Tina Oiness and Taylor Oiness, opposed full-time closure of Park Lane, citing financial loss, loss of parking and accessibility, and noting that every responding business on the 100 block opposed full-time closure.
- Amy Kangas, on behalf of the Housing Justice Project, read a renter’s letter describing racial barriers and a $400 rent increase forcing a move out of Kirkland.
- Angela Rozmyn supported full Park Lane closure as a pedestrian-friendly future but emphasized the need for more housing supply.
- Sam Rapoport, a renter, advocated for stronger tenant protections, including longer notices and enforcement.
- Susan Peterson and Katherine Freire spoke critically of the city’s handling of unvaccinated firefighters, urging reinstatement and accountability.
- Jennie Jaeger (Livable Kirkland) and Per Ola Selander supported option two (further study) for Park Lane.
- Patricia Bowen (Eastside Legal Assistance Program) urged immediate adoption of the full ARCH tenant protection recommendations, describing severe client hardship.
- Greg Cerbana (Weidner Apartment Homes) and Tessa McFarland (Prometheus Real Estate Group) opposed the tenant protection ordinance, arguing it would reduce rental housing supply.
- Maria Harwell supported King County’s permanent supportive housing at La Quinta and criticized Eastside Preparatory School’s concerns.
- Allison Blair presented the 2022 Matthew Dahl Kirkland Youth Council Memorial Scholarship to Josh Slate.
- Michelle Lustgarten, chair of the Park Lane Outdoor Sculpture Gallery, presented the 2022-2023 artist slate.
- Doug Ruff spoke about long COVID risks and promoted the Juanita Public Pathway project.
Special Presentations
- Eastside Preparatory School Health Through Housing Response: Deputy City Manager James Lopez recommended that Council authorize the City Manager to send a response to Eastside Prep affirming shared interest in a legally binding agreement with King County for permanent supportive housing. Council agreed and directed staff to proceed.
- COVID-19 Update: No update was provided.
- Resolution R-5434 Update: No update was provided; a two-year anniversary presentation is planned for September.
Consent Calendar
- Approved by a 7-0 vote (motion by Councilmember Curtis, second by Councilmember Black).
- Included approval of June 28 and July 19, 2022 meeting minutes; payroll of $5,344,862.61 and bills of $2,578,106.80 (plus other listed checks); award of the 2022 Annual Striping Program contract to Specialized Pavement Marking, Inc. for $76,708.75 with $107,645.00 in additional REET funding; acceptance of NE 120th Street Water Quality Treatment and 122nd Avenue NE Traffic Calming projects; Resolution R-5553 (2021 Proposition 1 Levy Accountability Report); one-time funding of $150,000 over three years for the Kirkland Parks and Community Foundation Executive Director; Cultural Arts Commission Park Lane Outdoor Gallery recommendations; Resolution R-5552 (2021 Parks and Community Services Annual Levy Report); Ordinance O-4808 (development fee rate schedules); June 2022 Sales Tax Report; and procurement report.
Business: Tenant Protection Policies Update
- Council considered Ordinance O-4810, implementing ARCH recommendations with modifications.
- Amendments:
- Added requirement that rent increase notices include the actual dollar amount (7-0).
- Added Section 7.75.055 allowing waivers of move-in fee/deposit limits only with written approval by tenant’s attorney (4-3).
- An amendment to revise late fees to 4% on outstanding balance failed (3-4), and a follow-up to waive late fees if paid within 90 days failed (2-5).
- An amendment to strike Section 7.75.050 (late fee limits) entirely passed (4-3).
- Final Vote: Ordinance O-4810, as amended, was approved 4-3. Those voting yes: Deputy Mayor Arnold, Councilmembers Black, Curtis, and Falcone. Those voting no: Councilmembers Nixon, Pascal, and Mayor Sweet. The ordinance includes rent increase notice requirements (120 days for >3% increases, 180 days for >10%) and caps on move-in fees/deposits at one month’s rent, but no late fee cap.
Business: Parks, Recreation and Open Space (PROS) Plan – Final Draft
- Staff presented the final draft incorporating prior feedback. Council approved two amendments: adding Objective 1.8.f to identify actions to reduce beach closures due to bacteria and poor water quality (7-0), and inserting “city-wide” into that objective (7-0). The plan will proceed to professional design and formatting for future adoption.
Business: Parks Funding Exploratory Committee Formation
- Council unanimously approved Resolution R-5551 establishing the Parks Funding Exploratory Committee to recommend capital/operating elements and funding structures for the November 2023 ballot. The committee will use a hybrid membership approach with specific organizations and an open application process. Councilmember Curtis noted an addition of “seniors” to the attachments.
Business: Future of Park Lane Discussion
- Council considered two options: 1) keep Park Lane open to vehicles, or 2) commission a consultant to evaluate seasonal or full closure. After discussion, Council voted 6-1 (Councilmember Nixon dissenting) to adopt option two, authorizing a study to evaluate closure scenarios and return with data and recommendations in early 2023.
Reports
- Councilmembers provided regional and committee updates, including a King County Growth Management Planning Council meeting, ARCH stakeholder focus group, upcoming Sound Cities Association nominations, permanent supportive housing tours, Little League Junior Softball World Series, National Night Out, and a Together Center tour.
- City Manager Kurt Triplett reported that two Community Responder positions are now active, with the remaining two expected by September 1, and a fourth position being reposted.
Executive Session
- Council entered executive session to discuss litigation, with staff and legal counsel present. The meeting was adjourned at 12:00 a.m. following the session.
Meeting Transcript
Okay, I would like to call to order the special city council meeting of August the 3rd, 2020. Tonight's meeting is a hybrid meeting. Community members are welcome to join us either in person or remotely through Zoom or by telephone. Clerk, will you please call the role for Council Member Nixon? Here. Council Member Black. Here. Council Member Curtis. Here. Council Member Falcon. Here. Council Member Pascal. Here. Deputy Mayor Arnold. Here. Mayor Sweet. Here. Our study session tonight is on a 2023-2024 preliminary utility rates discussion and also on a tax increment financing strategy for the 85th Street station area. We expect to reconvene our regular meeting at approximately 7 30. City manager. Okay, thank you, Madam Mayor. So Titan, as you mentioned, we're going to be covering utility rates background. We'll actually have our first preliminary rate proposals for you in September, but we wanted to give you some of the context for that discussion that's coming forward. We're coming a lot of rates tonight. So here to be our emcee for this is our utility policy and community relations supervisor, John McGilfrey. Our senior financial analyst Chris Lynch will also be part of the presentation, along with some special guests from the Cascade Waterlands. And that will be followed by a presentation on tax increment financing around 6 30. So Mr. McGalvery, please take it away. Okay, well, well, thank you, City Manager, and uh good evening, Mayor Sweet and Deputy Mayor Arnold and uh City Council members. So what I thought I would do is uh introduce our friends from the the Cascade Water Alliance uh first. Uh Mr. Ray Hoffman is CEO at Sevron, the chief economic economist and treasurer, Alison Bennett, uh intergovernmental and communications director, and Chris Pelucci, I believe your titles finance and administration manager, as well as uh Jeff Morris, uh, who helps us with our solid waste rates from uh Sound Resource Management. So welcome. Um so what I'm gonna do is share my screen here. Hope you see that. Okay, so we got the introductions out of the way. So I have a few opening remarks just to kick things off and then um we'll dive in. But in terms of the format for tonight, um I'm going to provide a high-level overview of each of the utilities, uh, a budget for each, um, a history of the rate adjustments, and some of the key rate rate assumptions and drivers, and then the rate increases, the preliminary rate increases themselves. And uh Josh Panski, Kelly Jones, and Chris Lynch are also on the line to answer any questions that uh may come up. And so tonight I the word of the day really is preliminary. Um I really can't stress this enough. Uh the rates that we present to you this evening um will change when we come back to you in September. Um, you know, a good analogy would be the proposed rates are set in wet concrete, but um preliminary rates are really set in sand. Um they're not really set in anything. Uh the water and stored surface water rates increase increases our our baseline, meaning that they're essentially um maintaining the current level of service that we have right now. Um there's a lot of there are a lot of things uh going on in the background that will impact these rates, such as service provider pass throughs, inflation service packages, capital investments, and the sequencing of those capital investments, uh regulatory compliance, reserve policies, and I could go on and on. Uh solid waste is a little bit further along because we don't have any capital assets or service packages, but again, they are also preliminary. In terms of challenges, it's just becoming increasingly challenging for us to keep rates um at or below inflation and maintain our own current service levels in the face of these um really rampant inflation and um our needs to maintain and improve our own infrastructure and our capital investment. So it's becoming challenging.
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