Kirkland City Council Regular Meeting – July 18, 2023

The Kirkland City Council met on July 18, 2023, beginning with a 5:30 p.m. study session (a special joint meeting with the Planning Commission, a 2044 Comprehensive Plan status update, and a Phase 1 review of Community-Initiated Amendment Requests) and reconvening for the regular meeting at 7:30 p.m. in the City Council Chamber. All seven council members were present: Mayor Penny Sweet, Deputy Mayor Jay Arnold, and Councilmembers Neal Black, Kelli Curtis, Amy Falcone, Toby Nixon, and Jon Pascal. Six Planning Commissioners were also present for the joint study session. The council took final action on the NE 85th Street Station Area Plan Phase 2 ordinances, approved a parks levy ballot measure ordinance for the November 7, 2023 special election, and made determinations on three Community-Initiated Amendment Requests. The meeting adjourned at 11:48 p.m.

Study Session

• Joint Meeting with Planning Commission: Planning Commission members presented their recommendations on the NE 85th Street Station Area Plan Phase 2, focusing on affordable housing requirements and parking standards. Commissioner Angela Rozmyn explained the Commission's recommended baseline of 5% of units at 50% area median income (AMI) plus another 5% at 50% AMI or a combination of higher AMI levels, citing feasibility concerns with the initial proposals (20–25% at 50% AMI, then 15% at 50% AMI) based on analysis by Bay Area Economics. Chair Scott Reusser discussed the companion recommendation to allow no parking minimums for affordable units only, as a way to reduce costs and encourage transit-oriented development.
• 2044 Comprehensive Plan Status Update: Senior Planner Janice Swenson briefed the council on community engagement efforts, including focus groups, surveys, and outreach through schools. Councilmembers suggested additional outreach to people who work in Kirkland but cannot afford to live there, college students, faith-based communities, and people with disabilities, and requested demographic data breakdowns from surveys.
• CAR Phase 1 Review: Senior Planner Lindsay Levine and Deputy Planning and Building Director Allison Zike reviewed the three Community-Initiated Amendment Requests with Planning Commission recommendations.

Consent Calendar

• Minutes of the July 5, 2023 regular meeting were approved via the consent calendar.
• Audit of accounts acknowledged: payroll of $4,073,502.19 and bills of $4,321,719.39.
• A claim for damages from Aegis Living – Kirkland was acknowledged.
• The Completed and Accepted Capital Projects Year-to-Date 2023 Report was acknowledged.
• The 2022-2023 Kirkland Youth Council Year End Report, 2nd Quarter Planning Implementation Report, May 2023 Financial Dashboard, and Procurement Report were acknowledged.
• Motion by Councilmember Amy Falcone, seconded by Councilmember Neal Black; approved 7-0.

Public Comments & Testimony

• Chad Vaculin (Housing Development Consortium / East Side Affordable Housing Coalition) urged the council to adopt greater affordability requirements in the station area, stating that the public should share in the value created by the upzone and that developments are challenged by market conditions, not by affordability requirements.
• Susan Pappalardo (co-founder and president, Splash Forward) expressed full support for the parks ballot measure, stating that the need for an aquatics facility is well defined and that the time to act is now.
• Deirdre De Wan Johnson (South Rose Hill resident) raised concerns about a neighboring ADU development where a second six-foot fence was built 15 inches behind her existing fence, asking the council to enforce setback, yard, and glare ordinances.
• Doug Ruff (chair, Juanita Neighborhoods Association) expressed strong support for the Totem Lake Connector Bridge and the proposed NE 124th public pathway, stating they are worth the cost and safer than more highway lanes.
• Kurt Dresner expressed support for expanding the housing supply, noting that for every 11 people who work in Kirkland there are only 10 homes, and that projections show only about three homes for every 10 jobs added over the next 20 years.
• Dan Landis (development director, King County Housing Authority) testified in support of the original staff recommendation for affordable housing requirements, stating that less than 3% of Kirkland's housing stock is affordable to households below 50% AMI and that some of the value created by upzones should be captured for public benefit.
• Alex Tsimmerman was removed from the chambers by the Mayor after making disruptive and unrelated remarks.
• Aaron Jacobson (Livable Kirkland member, renter in Lakeview) urged the council to plan for enough housing to match jobs growth, comparing the city's projected jobs-to-housing ratio unfavorably to the San Jose and Seattle metro areas and warning against Kirkland becoming "the San Francisco of the Pacific Northwest."
• Tom Schafer (commercial real estate broker and property owner in the Parmac area) asked the council to advance the Parmac CAR to Phase 2, describing the buildings as functionally obsolete and the area as suitable for housing near the Cross Kirkland Corridor.
• Barry Lavi (property owner on 17th Avenue) expressed support for advancing the Alavi CAR to Phase 2, stating his plans to convert his property to a coffee shop and woodworking shop.
• Tina Moody (owner, Absolutely Fabulous, 138 Park Lane) raised concerns about the potential closure of Park Lane, stating that MIG's preliminary report lacked financial impact analysis for businesses, did not list best practices or success stories, and understated the number of lost parking spaces (26 proposed lost spaces, not 17). She also cited $2–$4 million capital costs and up to $225,000 in annual costs.
• Jack McCullough (land use attorney for Tom Schafer) endorsed the Planning Commission and staff recommendation to advance and expand the Parmac CAR.
• Kim Faust (president, Main Street Property Group) stated that a realistic financial model shows the Planning Commission has pushed to the maximum feasibility of development and that private developers cannot feasibly offer more than 10% of units at 50% AMI.
• Katya Allen spoke in support of the staff-proposed affordable housing minimums, stating that the community was promised something in return for allowing higher development, and requested that an affordable housing requirement be studied as part of the Parmac CAR.
• Jessica Clausen (Main Street Properties) argued that market-rate developers are the city's partners in affordable housing production and that the staff's recommended 15% requirement would shut down both market-rate and affordable development.
• Paul Edward Morris (American Heart Association instructor and PulsePoint volunteer) expressed strong support for placing automated external defibrillators (AEDs) at city parks and recreation facilities.
• Karina O'Malley shared rental market data, stating that 80% AMI units (maximum rent about $2,100) are widely available and are not equivalent to 50% AMI units (about $1,300, essentially unavailable), and that 80% AMI units can be too expensive for housing choice voucher holders.

Special Presentations

• Capital Improvement Projects (CIP) Update: Capital Projects Manager Rod Steitzer reported 102 active projects, including 16 projects in construction with $55 million in investments, 74 projects in design with over $100 million in the pipeline, and 13 projects in award/bid or closeout. Recent highlights included the openings of the Totem Lake Connector bridge and 132nd Square Park, progress on the 100th Avenue improvement project (with a planned September groundbreaking), the fire station program, 124th Avenue improvements, the Lake Street/Kirkland Avenue intersection (advertising planned for October 2023), and NE 132nd Street paving coordination. The city has also submitted grants under the Safe Streets and Roads for All (SS4A) program, including a $240,000 request for Vision Zero data collection.
• Transportation Benefit District Update: TBD Manager Ray Steiger reported on the Washington State Department of Transportation I-405/NE 132nd Street interchange project, including a two-week full closure beginning August 18 through Labor Day weekend for large culvert installation and sidewalk work. He also presented the Transportation Benefit District activation: a $20 vehicle license fee starting January 2024, which will fund approximately 50 miles of bike lanes, 30 blocks of new sidewalk, 16 new crossings (RFBs or HAWK signals), and other active transportation projects. Two new streets and grounds staff have been hired, and the city is still recruiting for project manager positions.

Business: Parks Ballot Measure

• Parks and Community Services Director Lynn Zwaagstra and Finance and Administration Deputy Director Sri Krishnan presented Ordinance O-4857, which would submit a proposition to Kirkland voters at the November 7, 2023 special election to lift the levy limit under RCW 84.55.010 to fund park, recreation, and open space operations, maintenance, services, and facilities. The measure would fund an aquatics and recreation center (approximately 86,000 square feet at the Houghton Park-and-Ride site), three new year-round restrooms plus winterizing six existing restrooms, park safety/security improvements, four sports courts, expanded beach lifeguards and water safety education, teen programs and Teen Union building operations, green loop trail segments, and two implementation positions.
• The ordinance includes an exemption for seniors, disabled veterans, and others (approximately 0.5% of assessed value, about $0.005 per $1,000). The proposed levy rate is $1.38386 per $1,000 of assessed value, based on a forecasted 20% drop in assessed value, to raise $10.8 million annually. The estimated annual cost is approximately $224 for a home currently valued at $1 million, and approximately $280 for the estimated 2024 median-valued home.
• Councilmember Toby Nixon voted no, citing cumulative tax burden concerns for residents on fixed incomes and families facing multiple tax increases.
• Motion by Councilmember Kelli Curtis, seconded by Councilmember Amy Falcone; approved 6-1 (No: Nixon).
• The council appointed Susan Pappalardo, Scott Morris, and Jory Hamilton to the PRO committee for the voter pamphlet (7-0) and Ken MacKenzie, Vincent Campos, and Yuri Yulaev to the CON committee (7-0).
• The draft explanatory statement (232 words) was reviewed; staff was directed to add language about the estimated cost to a median-valued home (about $280 per year) and to test the statement with community members. The final statement is due to King County Elections by August 4, 2023.

Business: NE 85th Street Station Area Plan – Phase 2

• Deputy Planning and Building Director Allison Zike reviewed the public testimony from the February 23 and June 8, 2023 Planning Commission public hearings and the Commission's recommendations on three ordinances: O-4855 (zoning code amendments), O-4856 (legislative rezones), and O-4825 (Planned Action ordinance).
• The station area upzones will add capacity for approximately 6,243 new housing units. The council debated three options for affordable housing requirements: the staff recommendation (15% set-aside at 50% AMI), the Planning Commission recommendation (10% at 50% AMI with flexibility for equivalent AMI levels), and a blended option. Councilmember Curtis supported the staff recommendation; Deputy Mayor Arnold and Councilmember Pascal supported the blended option; Councilmember Nixon supported the Planning Commission recommendation.
• The council recessed and held the scheduled closed session on collective bargaining out of order while staff drafted a council amendment.
• Amendment (7-0): Councilmember Falcone moved, seconded by Councilmember Black, to incorporate the alternative KZC 112 amendments (Exhibit B). The amendment sets: (1) a base requirement of 15% at 50% AMI, with the first 10% of units required at 50% AMI and the remaining 5% permitted at equivalent AMI levels (60%, 70%, or 80%); and (2) a pioneer provision at the current 10% at 50% AMI level, with the first 5% required at 50% AMI and the remaining 5% at equivalent levels, for the first 624 vested units or until December 31, 2025, whichever is later. Planning staff clarified the language in subsection 112.23(d) to state that during the pioneer provision, the first five percent is at fifty, with the rest equivalent.
• Ordinance O-4855 (zoning code amendments, including form-based code, affordable housing requirements, and related amendments) was approved as amended by a vote of 5-2. Yes: Arnold, Black, Curtis, Falcone, Sweet. No: Nixon and Pascal. Nixon stated he voted no because the regulations are too restrictive and increase costs for market-rate units, and that he believes excessive regulation is a key driver of housing prices.
• Ordinance O-4856 (legislative rezones to conform with the Comprehensive Plan) was approved 7-0.
• Ordinance O-4825 (establishing a Planned Action for the Kirkland NE 85th Street Station Area) was approved 7-0.

Business: 2023-2024 Community Initiated Amendment Requests

• Alavi CAR (545 17th Ave West, Market neighborhood): Advanced to Phase 2 review during the current comprehensive plan update cycle. The request would remove a restriction limiting the parcel to detached or duplex residential development and allow non-residential uses consistent with the MSC-1 office zone. Motion by Deputy Mayor Arnold, seconded by Councilmember Black; approved 7-0.
• Weise CAR (6422 128th Ave NE, Bridal Trails neighborhood): Deferred for future consideration and not advanced to Phase 2 at this time. Council directed staff to study the broader zoning near the Bridal Trails shopping center to support a "10-minute neighborhood" as part of the Comprehensive Plan update. Motion by Councilmember Nixon, seconded by Councilmember Falcone; approved 7-0.
• Par Mac CAR (Totem Lake Business District, southern industrial commercial area): Advanced to Phase 2 review and expanded to include the entire southern industrial commercial subarea. The request would allow up to 1,200 residential units and 30,000 square feet of residential amenity and commercial space across four parcels, requiring changes to allowed density, height, and the 10-acre parcel aggregation requirement. Motion by Deputy Mayor Arnold, seconded by Councilmember Curtis; approved 7-0.

Reports

• Councilmember Black reported on an Eastside Transportation Partnership meeting, noting that King County Metro service restoration will be incremental and not tied only to scheduled service updates. He also noted that Police Chief Cherie Harris will present on the street racing and street noise pilot program at the upcoming Regional Law, Safety and Justice Committee meeting.
• Mayor Sweet invited councilmembers to the ribbon-cutting at the new Vela apartments on Thursday at 5:00 p.m.
• City Manager Kurt Triplett noted an upcoming Salary Commission meeting and a draft letter supporting the Sound Transit Eastside starter line, and received council support for the Mayor's signature. Council also agreed to add a public hearing and proposed resolution of support for the Parks ballot measure to a September meeting.
• The Legislative Request Memorandum items (Codes of Ethics and Conduct Acknowledgements, Automated External Defibrillators in Parks, and Allowing Electric Foot Scooters/Unicycles on the Cross Kirkland Corridor) were postponed to the August 2, 2023 meeting.

Key Outcomes

• Consent calendar approved 7-0.
• Ordinance O-4857 (Parks ballot measure) approved 6-1; special election set for November 7, 2023; PRO and CON committee appointments approved 7-0 each.
• Ordinance O-4855 (NE 85th Street Station Area zoning code amendments, including affordable housing requirements) approved 5-2 as amended; the alternative KZC 112 amendment approved 7-0.
• Ordinance O-4856 (legislative rezones) approved 7-0.
• Ordinance O-4825 (Planned Action) approved 7-0.
• Alavi CAR advanced to Phase 2 (7-0); Weise CAR deferred with further staff study directed (7-0); Par Mac CAR advanced to Phase 2 and expanded to the southern industrial commercial subarea (7-0).
• Legislative Request Memorandum items postponed to August 2, 2023.
• Council agreed to add a Parks ballot measure public hearing and resolution of support to a September meeting.
• A closed session on collective bargaining was held; the meeting adjourned at 11:48 p.m.