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HomeMy WebLinkAbout04-13-1998sp SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL '13, '1998 6:00 PM Auburn City Hall Council Work Area Minutes I. INTRODUCTION Mayor Booth called the April 13, 1998 special meeting of the Auburn City Council to order at 6:00 p.m. Mayor Booth and the following Councilmembers were present: Jeanne Barber, Rich Wagner, Sue Singer, Gene Cerino, and Pete Lewis. Councilmembers Trish Borden and Fred Poe were excused. Staff members present included: Planning and Community Development Director Paul Krauss, Assistant Planning Director Lynn Rued, City Attorney Michael J. Reynolds, Assistant City Attorney Judith Ausman, Parks and Recreation Director Dick Deal, Fire Chief Bob Johnson, Finance Director Diane L. Supler, Senior Engineer Dennis Selle, Traffic Engineer Steve Mullen, Contract Engineer Don Wright, and City Clerk Danielle Daskam. City Attorney Reynolds explained the purpose of this evening's meeting. The developer, The Lakeland Company, has indicated there is an urgency to resolve all the issues surrounding the Lakeland annexation by May 4, 1998. Mr. Reynolds referred the Council to two versions of a draft settlement agreement. Mr. Steve Sheehy, attorney for The Lakeland Company, drafted one version which incorporates all terms and conditions of the prior agreement in addition to new provisions to clarify the previous agreement. Mr. Sheehy's version also includes zoning-related legislative issues, which cannot be contracted. City Attorney Reynolds prepared the second version of the draft settlement agreement. The City's version of the draft settlement agreement specifies some basic contractual items, leaves in place the existing Annexation and Utilities Agreement between the City and The Lakeland Company, and provides amendments to the existing Annexation and Utilities Agreement. On May 4, 1998, Council will be asked to act on the amended agreement, a PUD ordinance, a bonding ordinance, a model home ordinance, and Comprehensive Plan text and map amendments. The proposed settlement agreement is specific to The Lakeland Company, and the ordinances relating to the Lakeland PUD, bonding, model homes, and Comprehensive Plan amendments are universal or site specific. Mr. Reynolds reviewed changes to the proposed settlement agreement dated April 6, 1998 identified as "Draft Lakeland Amended Annexation Agreement". Mr. Reynolds advised that The Lakeland Company representatives have agreed to utilize the draft settlement agreement prepared by the City as the base document. The proposed SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 2 settlement agreement will be titled "First Amendment to Lakeland Annexation and Utilities Agreement." In response to a question from Councilmember Wagner with regard to the second finding of fact on page 1 relating to release of claims and obligations, Mr. Reynolds advised that the Amendment to the Agreement will address the Crabtree Agreement and any claims with respect to water. Councilmember Wagner questioned the first finding of fact contained on page 3 regarding payment to the City of Auburn. Mr. Reynolds advised that The Lakeland Company has offered to pay the City of Auburn certain fees, which involve transportation and fire. The purpose of the finding of fact is to clarify that the payments are not considered impact fees. Councilmember Wagner expressed concern with the second finding of fact contained on page 3 regarding The Lakeland Company's procedure for proceeding with construction of the Lake Tapps Parkway. Councilmember Wagner suggested a stronger statement that conveys The Lakeland Company's commitment to construct the Lake Tapps Parkway. City Attorney Reynolds advised that The Lakeland Company representatives have agreed to change the finding of fact to read "Whereas, the parties acknowledge that TLC in cooperation with other governmental units, other than the City of Auburn, Washington, is proceeding with a procedure for the construction of the Lake Tapps Parkway and the parties acknowledge that the City has no responsibility to construct, to make any payments for the construction of such road nor to guarantee in any way any obligations for the construction of such read." Mr. Reynolds noted that the agreement also provides for a traffic cap that cannot be exceeded until the parkway is constructed. The last paragraph of page 8 of the draft agreement states: "The parties acknowledge that there is a transportation cap which will allow a generation up to 800 pm peak hour trips and the development of the property subject to this Agreement cannot exceed the capacity cap until the construction of a roadway connecting from the current city limits through the Lakeland property to 8th Street East, i.e. Lakeland Hills Way to Lake Tapps Parkway East." Councilmember Wagner requested that the agreement include additional language to ensure that the Lake Tapps Parkway is constructed by The Lakeland Company. City Attorney Reynolds agreed, and Mr. Sheehy concurred, to add another finding of fact to convey The Lakeland Company's commitment to construct the Lake Tapps Parkway. The final finding of fact deals with the settlement between the City of Bonney Lake and the City of Auburn and The Lakeland Company's input with regard to the settlement between the City of Bonney Lake and the City of Auburn. The draft Amended Lakeland Annexation and Utilities Agreement reaffirms the terms and conditions of the existing Agreement except where specifically amended by the proposed Amended Agreement. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 3 Mr. Reynolds advised of a recent amendment to paragraph 2 of the Amended Agreement. The following sentence will be added to the end of the paragraph: "However, in the event of an application in Pierce County in an area not yet annexed by the City, and the imposition of City standards would result in a denial of the application by Pierce County, the Pierce County standard will prevail. Therefore, the City waives its right under 4.1 ,C to refuse to extend the sewer utility under such circumstances. Under all other circumstances the City may withhold the sewer utility or other utilities." Mr. Reynolds stressed the importance of the provision. Mr. Reynolds also pointed out that the Agreement also contains a liquidated damages clause. The title of paragraph 3, Public Safety Services, has been changed to Police and Fire Services. Paragraph 3 provides that the City will provide police and fire services to the annexed area as long as TLC complies with Auburn City Code Title 15, which includes all uniform codes. Also added to that paragraph is the provision that, "Sprinklere shall be required for multi-family and commercial and single-family residential if required by Auburn City Code Title 15." Paragraph 4 relates to parks. City staff are nearly satisfied with the proposal submitted by The Lakeland Company. Planning and Community Development Director Krauss reported that an official Lakeland map will be adopted as part of the Lakeland PUD. The map will designate park locations. Paragraph 5, Inspecting Agency, designates the protocols for inspections and clarifies the inspecting agency. Paragraph 6, Applications Approved by Pierce County, moves to Paragraph 10. Paragraph 7, Covenant Running with the Land, remains in the Amended Agreement. Paragraph 8, PUD Ordinance, will be deleted. The reference to the PUD Ordinance is not necessary. Paragraph 9, School Impact Fee Ordinance, provides acknowledgment by TLC of the School Impact Fee Ordinance. TLC has agreed to add the following to the paragraph: "TLC agrees not to challenge the School Impact Fee Ordinance and will not challenge any impact fees up to $1,425 per single family and $750 per multi family unit." Paragraph 10, Protocol for Submission of Applications, contains provision for liquidated damages. TLC and the City have agreed that the Planning Director will determine whether TLC is out of compliance. The Planning Director's decision is appealable to the Hearing Examiner within thirty days from the date of the decision. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 4 Paragraph 11, Releases, attempts to resolve all disputes and claims. Paragraph 12, Transportation, provides for transportation mitigation fees. The paragraph will also include a CPI adjustment beginning January 2000. The Lakeland Company proposed the mitigation fees. City Attorney Reynolds reported that TLC has requested that the 800 pm peak trips referred to in paragraph 12 are clearly identified and allocated to TLC, Alison Moss, Bogle & Gates Ms. Moss, an attorney with the firm of Bogle and Gates, spoke on behalf of TLC. She suggested the City account for the 800 pm peak hour trips reserved for TLC when the City reviews other development applications. Steve Sheehv Mr. Sheehy, attorney for The Lakeland Company, directed the City Council to page 7, paragraph 4.4(d) of his draft of the Agreement which states the parkway will be constructed within six years of the Agreement. When the parkway is constructed, the capacity cap is terminated. Mr. Sheehy agreed to a six year construction deadline. Paragraph 13, Storm Water, provides in part that waters received from properties not yet annexed must be of the same quality and quantity as from property prior to development. The parties have agreed to modify the paragraph to change the word "quantity" to "rate". Paragraph 14, Sewer, provides that the City will provide sewer to TLC property even if the property is outside the city limits. Paragraph 15, Water, provides that the City of Bonney Lake will be the purveyor of water pursuant to the terms and conditions of the Agreement between the Auburn and Bonney Lake. Mr. Reynolds advised that the word "inappropriate" will be stricken from the second sentence of the paragraph. There was discussion regarding adequate fire flow for the property according to the City's minimum standards. Paragraph 16, relates to property acquisition issue for the well site and reservoir site. No monetary agreement has been reached on this issue. Finance Director Supler will be reviewing this issue. Paragraph 17, relates to fire services. TLC currently has a contract with Pierce County District No, 22 and is paying District No. 22 $400 per unit. Mr. Reynolds advised that the paragraph will be revised to include a format similar to the Transportation paragraph where charges are broken out among residential, commercial and other uses. Fire service charges will also be subject to an annual CPI adjustment. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 5 Mr. Reynolds advised that the Agreement will be presented to the Council on May 4, 1998 with its adopting Resolution. Mayor Booth recessed the meeting at 7:25 PM for a short break. Mayor Booth reconvened the meeting at 7:35 PM. Steve Sheehv Mr. Sheehy spoke as the attorney on behalf of The Lakeland Company, He outlined the items TLC has requested the Council review and approve by May 4, 1998. The items include: a revised Agreement, code amendments regarding bonding, code amendments regarding model homes, code amendments regarding basic permitting, an emergency Comprehensive Plan amendment, and a Lakeland Planned Unit Development Ordinance. Mr. Sheehy referred to his April 9, 1998 draft of the Amended Agreement. He proposed using all language on page 9 regarding parks in the final Amended Agreement. Mr. Sheehy confirmed the $800.00 transportation fee offered by TLC. He pointed out that the transportation fee is not subject to state laws affecting impact fees. Mr, Sheehy proposed $370,000 as value of the wells, the well property, and the storage tank property. He noted that the previous agreement provided the City would give credit for water hookups as the means for the paying for the wells and well property. However, now Auburn will not be the water provider. He pointed out that the Amended Agreement provides that the $400 fee currently paid to Fire District No. 20 for fire services will be paid to the City of Auburn upon annexation even if the City of Auburn chooses not to provide fire services directly. Councilmember Wagner suggested the fire flow standards for the two classes of buildings in Lakeland should be included in the Agreement. Mr. Sheehy advised that references to Title 15 Auburn City Code will be incorporated as reinforcement. Planning and Community Development Director Krauss explained that the Lakeland project has changed since the initial Agreement two years ago. The current Comprehensive Plan reflects the nature of the project proposed two yeare ago. In the past, the proposed development included 847 multi-family units and the remainder was single-family detached on a variety of lots. Today the project consists of the same number of units and same density, but the type of housing has changes. The project includes less single-family detached and a variety of medium-density detached/attached housing styles have been substituted. The Comprehensive Plan amendment will change the text and the map. The PUD ordinance and the official Lakeland Map will become the operating documents for the Lakeland development. The zoning for Lakeland Hills is contained in the PUD Ordinance. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 6 II. LAKELAND HILLS PRESENTATION - The Lakeland Company Mr. Sheehy introduced representatives of The Lakeland Company in attendance this evening: Alison Moss, a land use attorney with Bogle and Gates; Kent Steppen, an engineer for The Lakeland Company; Mark Hancock, project liaison; and Dick Buskrud with the architecture firm of Mithun Partners, Mr. Steppen reviewed the plats already approved by Pierce County and under construction. Mr. Steppen advised that Pierce County and the Department of Natural Resources have appreved clearing and grading permits for construction of a portion of the Lake Tapps Parkway. Construction of the parkway is underway. Mr. Hancock reviewed three adjoining condominium communities in the Lakeland Hills development in Pierce County. Each condo community is located on a seven acre parcel. The projects are distinguished by different design types. Each has access on Lakeland Hills Way, and all three communities are interconnected. Mr. Hancock reviewed the differing building type for the condo communities. The units are on a residential scale and designed to look very residential. The three communities consist of 92 units, 69 units and 101 units. The clustering of the housing units allows for open space and parks. The initial engineering and architectural drawings are underway for the three condo communities. Councilmember Cerino inquired regarding the streets within the condo community. Mr. Hancock advised that the streets within the parcel will be owned by the condominium association. Councilmember Wagner expressed concern with the utilization of private streets versus public streets. He proposed that the application of private streets should be limited within the city. Ms. Moss suggested deleting the private road standards from the Lakeland PUD ordinance. Ms. Moss advised that homeowner associations will be set up to pay for maintenance of the private streets. She also advised that Lakeland is not proposing private roads for any of the single-family detached neighborhoods. Mr. Hancock added that private streets in the condo communities provide for more design flexibility. Mr. Sheehy explained that the condo communities are subject to their own homeowner association bylaws as well as the overall Lakeland homeowner association bylaws and covenants. Mr. Buskrud presented an overview of a Lakeland project consisting of duplex homes arranged in clusters with private streets. The parcel consists of 12 acres with 98 units. The development consists of approximately one-third of an acre for park area. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 7 Approximately 50 percent of the units will be single story, 25 percent are one and one- half story units, and 25 percent are two story units. III. LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT A. Lakeland PUD Ordinance Planning and Community Development Director Krauss presented an overview of the Lakeland PUD ordinance. The Lakeland Planned Development District (PDD) has been approved in Pierce County and will be annexed to Auburn. The City needs a process to administer the Planned Unit Development (PUD) in Auburn, and a process to make major and minor amendments to the PUD. Minor amendments to the PUD can be processed administratively. A minor amendment is defined as a change, which alters less than ten percent of the density or area from one area to another. A major amendment is defined as a change in density or area of 10 percent or more. Major amendments are processed through a hearing process. The process includes a hearing by the Hearing Examiner with recommendation to the City Council, Alison Moss advised that Lakeland and the City of Auburn staff are still discussing how school sites will be treated. Councilmember Wagner expressed concern with the public hearing on a major amendment conducted by the Hearing Examiner rather than the City Council. Councilmember Singer expressed concern with 'the responsibility of the hearing placed on the City Council due to liability issues and code and Comprehensive Plan expertise. Assistant Planning Director Rued added that the Comprehensive Plan includes the special plan area. Any amendment of the special plan area would require an amendment to the Comprehensive Plan Map and text. Comprehensive Plan Map and text amendments require a public hearing by the City Council, Mr. Krauss directed the Council's attention to page 7 of the PUD Ordinance, specifically density ranges. He advised the density ranges are greater than the Comprehensive Plan and would only be applicable in the Lakeland development. The Council then reviewed Section 18.XX.060, Development Standards, which establishes setbacks, lot dimensions and other criteria. Mr. Krauss pointed out the different planning areas and zoning districts. The districts SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 8 correlate to the Lakeland Comprehensive Plan. The Commercial district is approved consistent with standards for the C-1, Light Commercial District. In other words, the commercial district standards are those established by the Zoning Ordinance. Alison Moss inquired regarding the type of major amendments that would require a Comprehensive Plan amendment. She requested that the Council and staff consider a Comprehensive Plan map that is more flexible and less specific. She acknowledged that changes such as increasing the amount of commercial would require a Comprehensive Plan amendment. However, adjustments consistent with the overall guidelines would not require a Comprehensive Plan amendment. Mr. Krauss briefly touched on Section. 18.XX.070, Design Requirements. Landscaping, architectural, and signage standards will be added. Councilmember Wagner suggested that the following sentence of paragraph A.2 be deleted: "At the City's discretion, the required 20% open space may meet all or a portion of the required park land." Section 18.XX.080, Public Infrastructure Requirements, addresses private streets. This section will be revisited by staff. In response to a question from Councilmember Wagner regarding LIDs, Mr. Sheehy cited Section 3.6 of the current Lakeland Annexation Agreement, which provides: "The owner shall not protest the future formation of any LID." Councilmember Wagner questioned whether the ordinance provides for pedestrian and bicyclist trails. Mr. Krauss advised that the Lakeland Master Plan includes a trail system and there is language in Section 18.XX.010, Purpose, of the PUD Ordinance. Mr. Krauss explained that the next step for the PUD Ordinance is its presentation to the Planning Commission. B. Model Home Ordinance Mr. Krauss explained that The Lakeland Company has requested the ability to have more than one model home, which is all that is allowed now. Mr. Krauss reminded Council that the change in the number of model homes would apply city-wide. Staff suggested one model home for plats up to 20 lots and up to four model homes for others. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 9 C. Improvement Methods and Bonding Ordinances Senior Engineer Dennis Selle reviewed the proposed change to the Subdivision Code regarding bonding. Currently, the City does not allow bonding of final plats unless they are substantially completed. Substantially completed means construction of the streets, curb and gutters, sanitary sewer system, water system, and storm drainage system. The City currently allows bonding for street lighting and sidewalks. The proposed amendment would allow developers to completely bond a preliminary plat for all improvements. Mr. Selle advised that if the City were to take over the liability for constructing the improvements in a default situation, the City's costs would be higher than those for a private developer due to prevailing wages and other considerations. The bond would need to be in amount to cover prevailing wages, design engineering costs, construction engineering costs, contingencies, and infiationary factors. Mr. Selle also advised that the term for bonding must be established. Mr. Selle suggested that a provision to ensure that most of the substantial improvements are completed prior to building occupancy is included in the Subdivision Ordinance, Councilmember Singer questioned the bonding terms for other jurisdictions. Mr. Selle advised that many jurisdictions allow bonding of plats, but information regarding the term of the bonds was not available yet. Staff is still researching the issue. D. Fiscal Analvsis Councilmember Wagner inquired regarding a fiscal analysis of the annexation. Finance Director Supler referred to an analysis that projected some operating losses in the General Fund in the year 2000. The data was based on the assumption of a fourth fire station. There is a supposition that the revenue will build back up. Ms. Supler referred to a smaller annexation recently accomplished by the City. An analysis of the annexation indicated an operating gain for four years, a loss for five years, and then increasing gains again. She cautioned that statistical analysis is valid for only five years. SPECIAL CITY COUNCIL MEETING REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT APRIL 13, 1998 PAGE 10 IV. ADJOURNMENT There being no further discussion, the meeting adjourned at 9:19 PM. Approved on the / ~' ~ day of ~::~x-~Z~' ,1998. ~esA. ooth, k~ayor Danielle Daskam, City Clerk