OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Kirkland City Council Regular Meeting - August 7, 2024

City CouncilWednesday, August 7, 2024
BodyKirkland, Washington
SessionCity Council
DateWednesday, August 7, 2024
StatusFILED
Video Record
0:00 / 4:23:08

Transcript — Verbatim
0:11

Thank you, we're alive, Mayor.

0:13

Thank you.

0:15

Welcome everyone to City Council meeting on this beautiful day.

0:19

I'd like to call to order the city council meeting of August 7th, 2024.

0:24

I want to acknowledge that Council Haskell will be attending tonight's meeting remotely.

0:29

Clerk, will you please call the roll?

0:31

Councilmember Tim Chison.

0:33

Councilmember Black.

0:34

Councilmember Sweet.

0:36

Here.

0:36

Councilmember Falcon.

0:38

Here.

0:38

Councilmember Pascal.

0:41

Here.

0:41

Deputy Mayor Arnold.

0:42

Here.

0:43

Mayor Curtis.

0:44

Here.

0:45

Our study session tonight is on two items.

0:47

First is an update on the evaluation of the Kraken Iceplex proposal.

0:51

Second is discussion on the preliminary 2025-2026 utility rates.

0:57

We expect to reconvene our regular meeting at 7 30.

1:01

City manager.

1:02

Thank you, Madam Mayor, members of the council.

1:04

So we have a lot to talk about with respect to the Kraken proposal and many, many people to thank for all their work on it.

1:10

I'm gonna actually turn it over to our deputy city manager of External Affairs who will introduce all the players and uh kick us off.

1:16

I also want to make a special note.

1:18

We have uh with us remote, Tracy Dunlap, our former deputy city manager, who's now been our financial advisor on this.

1:24

And so she's also available to answer questions if needed, but she helped facilitate our relationship with CA ICON.

1:30

So with that, I will turn it over to Mr.

1:32

Lopez.

1:33

Thank you very much, City Manager.

1:34

Uh good evening, Madam Mayor, uh Deputy Mayor and Council.

1:38

It's a pleasure to be here tonight presenting on the Iceplex proposal by the Seattle Kraken and our evaluation of it.

1:45

Uh as the city manager noted, I am joined tonight by George Dugdale from our finance department, John Burkhalt from Public Works, and Lynn Zwagstra, our direct director in parks and recreation, to help answer questions uh at the close of the proposal.

2:00

We hope to move through the proposal and take questions at the end, although please feel free at any time to ask.

2:06

The lion share of the presentation tonight is by Brian Slater, a senior director at CAA Icon.

2:12

Thank you, Brian.

2:13

Brian has flown in from beautiful Nashville, Tennessee.

2:16

Correct.

2:16

Yes, to present to us tonight.

2:18

CA ICON is a national consulting firm that we hired to complete a financial analysis of the project, including a market demand analysis to review the financial projects from the Kraken, and to conduct an economic and fiscal impact analysis to show potential benefits of the project.

2:36

All important information we feel to provide the council as you contemplate making a decision as to whether or not to go forward with this project.

2:45

So most of the presentation will be by Brian about the report that is in the council packet along with our staff memorandum.

2:54

At the close of Brian's presentation, we'll transition into the section that I will give, giving you an update on some zoning and land use issues pertinent to this deal.

3:05

An interesting opportunity for stormwater that we are now considering perhaps to bring more value to the deal and public benefit, as well as some updates to the Kraken's original proposal, which we've talked to the Kraken about, and we are confident that they don't um change substantially in any way or substantially the findings of the report themselves.

3:28

So I'll go into what those specific proposal updates are now that they are a little more mature in their understanding of the financials to do the project.

3:37

So without further ado, let me turn it over to Brian.

3:41

Okay.

3:41

Uh thanks, Jim.

3:43

Um pleased to be here tonight with the uh city council.

3:46

Um thanks for for your help throughout this process.

3:49

Same to you, George.

3:50

Um, and I'm going to uh try to marshal through our findings um pretty quickly here.

3:55

There's a full report that you received in your uh in your packet that's it's about 160 pages.

4:01

A lot of it's just charts and graphs, but um a lot of a lot of more detail is provided in um in the full report.

4:09

So um just gonna give a brief description of CAICON and who we are.

4:14

Um Jim kind of stole a little bit of my thunder, but um we're the world's leading owners representative of strategic management consulting firm for sports entertainment public assembly venues.

4:24

We have three different business lines, project management, um, feasibility and planning and strategic advisory.

4:30

I fall into the strategic advisory group.

Discussion Breakdown — Share of Meeting
Transportation█████████████13%
Comprehensive Planning████████████12%
Economic Development█████████9%
Water And Wastewater Management████████8%
Affordable Housing███████7%
Parks and Recreation██████6%
Public Engagement█████5%
Community Engagement████4%
Transportation Safety████4%
Summary of Proceedings

Kirkland City Council Regular Meeting - August 7, 2024

The Kirkland City Council met on August 7, 2024, starting with a study session at 5:30 p.m. and the regular meeting at 7:30 p.m. The study session covered an evaluation of the Kraken Iceplex proposal and a preliminary 2025-2026 utility rates discussion. The regular meeting included a commendation for the Kirkland Little League softball team, public comments, a consent calendar, and several business items. Key actions included approval of an automated safety camera ordinance, a fire training interlocal agreement, funding for pedestrian crossings and marina renovations, and direction to develop a term sheet for the Kraken Iceplex.

Consent Calendar

  • Approval of Minutes: Minutes of July 16, 2024, approved.
  • Audit of Accounts: Payroll $6,590,206.46 and bills $16,158,989.78 acknowledged.
  • Claims for Damages: Claims from Justin Humke, Kristina Kochu, Ali Najar, and Villa Juanita acknowledged.
  • Award of Bids: Construction contract for Lake Washington High School Pedestrian and Bicycle Improvements awarded to Kamins Construction, Inc. for $859,915.36.
  • Other Items: Termination of June 2024 emergency proclamation, declaration of surplus vehicles, recognition of resignations from Design Review Board (Shoshana Cohen) and Transportation Commission (Faith DeBolt), acceptance of Public Disclosure Semi-Annual Report, May and June 2024 Financial Dashboard Reports, June 2024 Sales Tax Report, and Procurement Report. All consent items approved 7-0.

Public Comments & Testimony

  • On the Kraken Iceplex Proposal: Kyle Sullivan expressed skepticism, noting that direct profits go to the Kraken, most economic impacts leak to other cities, and hockey is expensive, raising concerns about affordability and long-term facility upkeep. He urged continued evaluation of alternatives.
  • On the Comprehensive Plan Transit Corridors (most speakers):
    • Pieter De Temmerman (Kirkland resident) opposed the transit corridor plan, arguing it would negatively impact single-family neighborhoods and that existing station area plans provide sufficient capacity.
    • Larry Waldman (19-year resident) expressed fear about the lack of infrastructure planning and urged the council to remove the proposal until a detailed plan exists.
    • Belle Marlar (Juanita High School student, Sustainability Ambassadors) spoke in support of zero-carbon commuting campaigns (bike to school, carpool, bus bingo) and encouraged council participation.
    • Keith Dunbar (33-year resident) argued Kirkland can meet growth targets with existing zoning and opposed rezoning along transit corridors, suggesting a public vote.
    • Luke Travis supported the transit corridor plan, sharing his positive experience using transit and emphasizing the need for affordable housing.
    • Jennifer Ohayon (resident) pointed out Kirkland already has more housing units than surrounding cities and argued current zoning is sufficient to meet growth commitments without upzoning neighborhoods.
    • Jim DeJarnatt raised concerns about road congestion and emergency vehicle access on 16th Avenue.
    • Jill Krzewina criticized community outreach on the comprehensive plan, saying information was not well communicated.
    • Liz Hunt thanked planning staff for attending a neighborhood meeting and encouraged continued communication.
    • David Haines complained about road rage, poor crosswalks, and lack of infrastructure in Juanita.
    • Lisa Berenson supported the comprehensive plan, advocating for mixed-use neighborhoods and better transit.
    • Ken MacKenzie criticized city documents referencing "high opportunity areas with good schools," noting all Kirkland schools are good.
    • Martin Stoddart questioned whether the city's affordable housing targets (especially sub-30% AMI) are realistic and asked for clarity on the actual number of units required.
    • Scott Brady discussed economic development, warning against over-reliance on service industries.

Discussion Items

  • Study Session: Evaluation of Kraken Iceplex Proposal
    • Deputy City Manager James Lopez and CAA Icon Senior Director Bryan Slater presented a financial analysis, market demand study, and economic impact assessment. Key findings: strong alignment with city goals, unaccommodated demand for peak ice, reasonable financial projections (with $1.5M in shared staffing savings), limited local economic impact due to tax structure and hotel inventory, but significant intangible benefits. Staff recommended developing a term sheet. Council consensus supported moving forward; City Manager Kurt Triplett confirmed staff will develop a term sheet for a September meeting.
  • Study Session: Preliminary 2025-2026 Utility Rates
    • Senior Financial Analyst Grant Raupp presented projected rate increases: water 4.5% each year, sewer 7.4% (2025) and 6.4% (2026), surface water 8.0% and 7.5%, solid waste 4.1% and 5.7%. Average single-family impact ~$13.46/month in 2025. Council discussed low-income program expansion and reserve policies. No vote taken; rates will be revisited in September and October.
  • Automated Safety Camera Program (Ordinance O-4880)
    • City Attorney Darcey Eilers and Transportation Engineering Supervisor Jennifer Palmer presented an ordinance to combine school speed zones and expand enforcement periods (Option 2: from 7:30 a.m. to 4:30 p.m. on school days). Community feedback from schools was supportive. Councilmember Tymczyszyn moved to defer until a holistic 2025 study, but the motion failed. The ordinance was approved 7-0.
  • K2044 Comprehensive Plan Land Use Element Update – Transit Corridors Briefing
    • Deputy Planning Director Allison Zike presented the draft policy LU 2.4, which would allow studying increased housing capacity (up to 50 DU/acre) along frequent transit corridors. Council members provided guidance: Councilmember Black supported the concept but requested clear "signposts" linking implementation to infrastructure and transit service; Councilmember Pascal opposed the policy, citing inadequate environmental analysis and uncertain transit; Councilmember Falcone supported the policy as part of compliance with housing needs, emphasizing responsible planning; Councilmember Tymczyszyn opposed, favoring focus on existing station area plans; Deputy Mayor Arnold supported with nuance, suggesting corridor-specific treatment and aligning zoning with transit timelines; Councilmember Sweet supported moving forward; Mayor Curtis supported with clearer phasing and linkages. No vote; planning commission will incorporate feedback.
  • South King County Fire Training Consortium Interlocal Agreement (Resolution R-5639)
    • Chief Administrative Officer Maggie Eid and Deputy Fire Chief Ryan Woodey presented the agreement combining fire training resources with 12 other departments. Approved 7-0.
  • 100th Avenue NE Roadway Improvements – Additional Pedestrian Crossing Fiscal Note
    • Capital Projects Supervisor Laura Drake requested $750,000 from REET reserves for a HAWK signal crossing. Approved 7-0.
  • Marina Park Dock and Shoreline Renovations Funding Transfer
    • Capital Projects Coordinator Maureen Colaizzi requested fund balance transfers to advance design and safety improvements (Options 1 and 2). Council discussed future parking lot and sidewalk improvements. Approved 7-0.
  • August 2024 Board and Commission Recruitment Interview Selection Committee Appointment
    • Three councilmembers drawn by lot: Councilmember Pascal, Councilmember Black, and Mayor Curtis.
  • Low Clearance Bridge Mural Project
    • Diversity, Equity, Inclusion, and Belonging Manager Erika Mascorro proposed proceeding with a mural on the Cross Kirkland Corridor bridge over 975 Kirkland Way, using $15,000 from the Council Special Projects Reserve. Council expressed desire for an open call for art, not just the existing banner design. Approved 7-0.
  • Special Presentation: Public Works Maintenance Center Facility Plan Update
    • Public Works Director Truc Dever presented options for property acquisition near the existing site to address space deficiencies (crew spaces, shop, storage). Council no action; direction to be reflected in the 2025-2026 CIP budget.

Key Outcomes

  • Kraken Iceplex: Council directed staff to develop a term sheet for negotiation, to be presented at the September 2024 meeting.
  • Automated Safety Camera Ordinance (O-4880): Approved 7-0 to combine school zones and expand enforcement periods (7:30 a.m. – 4:30 p.m.).
  • Fire Training Consortium ILA (R-5639): Approved 7-0.
  • 100th Avenue Pedestrian Crossing: Approved $750,000 fiscal note from REET reserves 7-0.
  • Marina Park Dock Renovations: Approved fund balance transfers for design and safety improvements 7-0.
  • Low Clearance Bridge Mural: Approved $15,000 from Council Special Projects Reserve 7-0; staff to initiate open call for art.
  • Comprehensive Plan Transit Corridors: No vote; council provided feedback to planning commission, emphasizing clearer implementation triggers, phasing, and infrastructure concurrency.
  • Executive Session: Council entered executive session at 10:10 p.m. to discuss potential acquisition of real property, reconvened at 11:05 p.m. solely to adjourn.
  • Next Meeting: No second meeting in August; next regular meeting scheduled for September.

Meeting Transcript

Thank you, we're alive, Mayor. Thank you. Welcome everyone to City Council meeting on this beautiful day. I'd like to call to order the city council meeting of August 7th, 2024. I want to acknowledge that Council Haskell will be attending tonight's meeting remotely. Clerk, will you please call the roll? Councilmember Tim Chison. Councilmember Black. Councilmember Sweet. Here. Councilmember Falcon. Here. Councilmember Pascal. Here. Deputy Mayor Arnold. Here. Mayor Curtis. Here. Our study session tonight is on two items. First is an update on the evaluation of the Kraken Iceplex proposal. Second is discussion on the preliminary 2025-2026 utility rates. We expect to reconvene our regular meeting at 7 30. City manager. Thank you, Madam Mayor, members of the council. So we have a lot to talk about with respect to the Kraken proposal and many, many people to thank for all their work on it. I'm gonna actually turn it over to our deputy city manager of External Affairs who will introduce all the players and uh kick us off. I also want to make a special note. We have uh with us remote, Tracy Dunlap, our former deputy city manager, who's now been our financial advisor on this. And so she's also available to answer questions if needed, but she helped facilitate our relationship with CA ICON. So with that, I will turn it over to Mr. Lopez. Thank you very much, City Manager. Uh good evening, Madam Mayor, uh Deputy Mayor and Council. It's a pleasure to be here tonight presenting on the Iceplex proposal by the Seattle Kraken and our evaluation of it. Uh as the city manager noted, I am joined tonight by George Dugdale from our finance department, John Burkhalt from Public Works, and Lynn Zwagstra, our direct director in parks and recreation, to help answer questions uh at the close of the proposal. We hope to move through the proposal and take questions at the end, although please feel free at any time to ask. The lion share of the presentation tonight is by Brian Slater, a senior director at CAA Icon. Thank you, Brian. Brian has flown in from beautiful Nashville, Tennessee. Correct. Yes, to present to us tonight. CA ICON is a national consulting firm that we hired to complete a financial analysis of the project, including a market demand analysis to review the financial projects from the Kraken, and to conduct an economic and fiscal impact analysis to show potential benefits of the project. All important information we feel to provide the council as you contemplate making a decision as to whether or not to go forward with this project. So most of the presentation will be by Brian about the report that is in the council packet along with our staff memorandum. At the close of Brian's presentation, we'll transition into the section that I will give, giving you an update on some zoning and land use issues pertinent to this deal. An interesting opportunity for stormwater that we are now considering perhaps to bring more value to the deal and public benefit, as well as some updates to the Kraken's original proposal, which we've talked to the Kraken about, and we are confident that they don't um change substantially in any way or substantially the findings of the report themselves. So I'll go into what those specific proposal updates are now that they are a little more mature in their understanding of the financials to do the project. So without further ado, let me turn it over to Brian. Okay. Uh thanks, Jim.

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