HomeMy WebLinkAbout04-27-1998sp SPECIAL CITY COUNCIL STUDY SESSION
REGARDING LAKELAND HILLS/PIERCE COUNTY DEVELOPMENT
APRIL 27, 1998 5:30 PM
Auburn City Hall
Council Work Area
Minutes
I. INTRODUCTION
Mayor Booth called the special meeting of the Auburn City Council to order at
5:40 PM in the Council work area located in the Mayor's Office in Auburn City
Hall. Mayor Booth and the following members of the Auburn City Council were
present: Pete Lewis, Sue Singer, Jeanne Barber, Fred Poe, Gene Cerino, and
Rich Wagner. Councilmember Borden was excused from the meeting. Staff
members present included City Attorney Michael J. Reynolds, Assistant City
Attorney Judith Ausman, City Engineer Traffic Engineer Steve Mullen, Senior
Engineer Dennis Selle, Fire Chief Bob Johnson, Planning and Community
Development Director Paul Krauss, Parks and Recreation Director Dick Deal,
and City Clerk Danielle Daskam.
City Attorney Reynolds referred to the Draft First Amendment to Lakeland
Annexation and Utilities Agreement (#-4). The purpose of this evening's meeting
is to review the latest draft of the First Amendment to the Agreement and other
issues including the Comprehensive Plan amendments, PUD ordinance and Title
17, in order to meet the May 4 1998 timeline which The Lakeland Company
(TLC) has indicated is their deadline to ensure financing for the construction of
the Lake Tapps Parkway.
II. AMENDMENT TO THE LAKELAND ANNEXATION AND UTILITIES
AGREEMENT
City Attorney Reynolds reviewed the revised First Amendment to Lakeland
Annexation and Utilities Agreement dated April 27, 1998.
Councilmember Wagner advised that the change to the Agreement regarding
construction of the Lake Tapps Parkway indicates that construction of the
parkway is more important to the City rather than The Lakeland Company.
Councilmember Wagner recommended the wording be changed to convey the
importance of the construction of the Parkway to The Lakeland Company.
Councilmember Lewis recommended changing the word "City" to "TLC" on page
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April 27, ~1998
Page 2
3, last paragraph, line 9. Co'uncilmember Wagner also requested wording to
convey TLC's commitment to construction of the Parkway. City Attorney
Reynolds referred Councilmember Wagner to Section 1. Condition Precedent.
City Attorney Reynolds advised the Council of the receipt of comments from The
Lakeland Company attorney, Steve Sheehy, dated April 27, 1998 with regard to
the settlement agreement.
City Attorney Reynolds referred to the Council to the sewer denial provision
contained in Section 3, Development Approvals from Pierce County, the last
sentence which reads, "Under all other circumstances the CITY may choose not
to extend sewer utility and/or other utilities. Mr. Reynolds described the section
as a backup remedy to liquidated damages remedy. TLC objects to the
provision.
City Attorney Reynolds noted that TLC has requested insertion of a notice and
opportutnity to cure language and clarification that the Hearing Examiner's
decision may be arbitrated under paragraph 5.3 of the 1996 Agreement. Mr.
Reynolds agreed to TLC's request.
Mr. Reynolds noted that TLC requested a change to Section 10, Releases, to
include language that the release applies to any event that may occur prior to the
date of the execution of the Agreement.
Mr. Reynolds advised that TLC has requested a change to Section 11,
Transportation, to calculate the transportation cap at the time of building permit
issuance and not the final plat. Staff agreed with TLC's request provided a
recording provision is added to the Agreement, and the Agreement is reformatted
for recording purposes.
Mr. Sheehy responded to a question from Councilmember Wagner regarding the
800 pm peak hour trip capacity provided in the Agreement and the City's
calculation of remaining trips as 735. Mr. Sheehy advised the 800 trip capacity
was reached to attain consistency between the City's trip capacity and Pierce
County's trip capacity.
Mr. Reynolds referred the Council to Section 14, Payment for Wells and Property
Associated with Wells and Reservoir Site. The City's proposal is to pay the
appraised value of the real estate, but will not pay for the wells. The wells are not
functional to the City. TLC proposes that the City reimburse TLC for the well
development costs.
Mr. Reynolds indicated that Section 12, Storm Water, has been resolved. The
parties have agreed to modify the language.
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April 27, 1998
Page 3
Mr. Reynolds referred the Council to Section 16, Fire, of the Agreement. TLC
proposes additional language to require the City provide TLC with notice of when
the City intends to serve the area so that TLC can terminate the District 22
agreement with proper notice.
Mr. Reynolds identified Mr. Rich Hill in the audience. Mr. Hill is an attorney
representing a property owner and developer near the Lakeland development.
Also present in the audience is Mr. Heath Merchen, an attorney representing the
Auburn School District, who is present and interested in discussions regarding
school impact fees. Mayor Booth introduced Mr. Bob Poltevardt, Assistant
Superintendent for the Auburn School District, also in attendance this evening.
Mr. Reynolds advised that the Agreement includes language regarding school
impact fees for the Dieringer School District. The Agreement provides there is no
dispute between the City and TLC relating to a challenge of the impact fee
ordinance. The impact fee ordinance provides that any constitutionality
challenge will be defended by the school district and not the City. TLC reserves
the right to challenge the amount of the impact fee over the rate already identified
by the Dieringer School District.
Councilmember Wagner expressed concern with the wording in Section 14,
Water, which reads in part, "... City agrees to work in good faith with the City of
Bonney Lake in an attempt to help achieve a system which meets City
requirements for the provision of urban services." He expressed concern that the
provision would obligate the City to invest capital. City Attorney Reynolds
advised that the City of Bonney Lake representatives testified before the
Boundary Review Board that their water system is adequate to serve the
Lakeland area. The purpose of the language is to express good faith.
Mr. Reynolds concluded his review of the revised First Amendment to Lakeland
Annexation and Utilities Agreement Draft ~..
Steve Sheehy, 5004 43rd Avenue South, Seattle, WA, 98118
Mr. Sheehy identified himself as attorney representing The Lakeland Company
(TLC). Mr. Sheehy requested the City consider that TLC is waiving its rights
under the Crabtree Agreement, and TLC is willing to accept the liquidated
damages provision, which replaces a "hammer" the City had in the 1996
Agreement, in exchange for the City's commitment that the City will provide
sewer. He acknowledged that TLC is required to construct sewer to Auburn
standards, pay Auburn's fees, and submit engineering plans to the City for
review.
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April 27, 1998
Page 4
Mr. Sheehy spoke regarding the Lake Tapps Parkway. He conveyed TLC's
commitment for construction of the parkway and agreed to add language to the
Agreement to satisfy Councilmember Wagner's request to include stronger
language regarding the importance of the parkway project to TLC.
Chuck Henderson, Henderson Homes and The Lakeland Company
Mr. Henderson explained that the reason for the May 4, 1998 deadline for the
Agreement is to ensure financing to construct the parkway. He advised that the
parkway is under construction now, and its completion is expected in 1999.
Heath Merchen, Auburn School District
Mr. Merchen identified himself as an attorney representing the Auburn School
District. He expressed concern about the City's school impact fee ordinance,
specifically the indemnity provision. The school district is concerned about any
potential uninsured loss. He requested cooperation from the City in resolving the
language issues with the City's school impact fee ordinance.
Rich Hill,
Mr. Hill identified himself as legal counsel for River Glen Partnership, which is the
owner of the multi-family parcel in Lakeland Hills. He expressed concern with the
last paragraph of Section 11, Transportation, which reads, "When reviewing any
other application submitted to the City, the City shall consider the 800 pm peak
hour trips to be present on the street system." Mr. Hill requested that his clients
be allowed equal rights for use of the street. He complained that the Agreement
reserves the remaining capacity, although the capacity is not in use. Mr. Hill
described the property in question as in the existing Lakeland Hills next to the
entry to Lakeland and was part of the P. Hendley bankruptcy. According to the
traffic engineers, the available capacity of Lakeland Hills Way cannot be
increased until the parkway is constructed. City Engineer Dennis Dowdy offered
that the capacity could be increased by lowering the level of service on Lakeland
Hills Way. The current level of service is "D".
Planning and Community Development Director Krauss explained that the
capacity is on a first come, first served basis. Under the Growth Management
Act, if capacity is not available, the project cannot be built. However, the Growth
Management Act allows consideration of transportation projects that are
committed within six years. Mr. Krauss pointed out that the existing Agreement
with TLC, which has been in effect for two years, also included a transportation
cap, which was allocated to TLC.
Mr. Hill reiterated his concerns for available transportation capacity for his client's
project.
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April 27, 1998
Page 5
Councilmember Wagner recommended deleting the section, Condition
Precedent. TLC representatives indicated their concurrence in deleting
Condition Precedent.
Councilmember Wagner recommended that the City utilize Mr. Sheehy's
language regarding the commitment of TLC to construct the Lake Tapps
Parkway rather than the City's drafted version.
The Council discussed the liquidated damages clause of the Agreement. The
$1,000 per day liquidated damages is the amount included in Auburn City Code
for gross misdemeanors. Planning and Community Development Director
Krauss explained there is a 30-day period after notice that TLC has an
opportunity to address the issue. TLC can file an appeal of the Director's
determination to the Hearing Examiner, and then to the City Council. Therefore
there is a 90-day period before the damages would be in effect.
Mr. Henderson requested more language to clarify the liquidated damages
section of the Agreement.
Councilmember Lewis questioned whether the Council was comfortable enough
with the liquidated damages language in Section 9 to delete the last sentence of
Section 3 which was described as the sewer "hammer".
Councilmember Wagner suggested the possibility of increasing the amount of
liquidated damages.
Attorney Alison Moss, representing The Lakeland Company, pointed out that the
liquidated damages would only apply to development within Pierce County which
has not complied with Auburn standards. Once the area is annexed, the City
could refuse to issue the permits.
Councilmember Lewis indicated his approval to delete the last sentence on page
5 regarding refusal to extend sewer provided the liquidated damages clause
remains. Councilmembers Singer and Wagner expressed their support for the
change.
Mr. Henderson presented the Council with a summary of costs for two well sites.
He requested clarification from the City, that the City will conduct an appraisal of
the property value and an audit of the justification of the costs, and the sum of
the two will be paid to TLC in exchange for the well sites.
City Engineer Dowdy advised that staff has determined that the wells may not be
of benefit to the City. Mr. Dowdy suggested that language be included to provide
the City agrees to pay the values, provided Auburn makes use of the wells. Mr.
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April 27, 1998
Page 6
Dowdy advised that the results of the test pumping and water analysis indicated
the wells were unusable to the City.
Councilmember Poe suggested that the cost of the well development is the
correct way to determine the well value and the value of the land will be
determined by real estate appraisal.
Councilmember Wagner expressed concern with paying for wells if they are
worthless assets.
Mayor Booth reported there may be a number of reasons the wells are not
usable for the City. The wells may be in direct continuity with the City's other
wells or there may be quality issues. Additionally, there are no water rights
attached to the wells.
Mr. Sheehy noted that in the beginning, the City wanted the wells. He proposed
that, if the City does not want the wells, the provision should be removed from
the Agreement.
Mayor Booth agreed to look at the background information regarding the well
information.
III. LAKELAND - COMPREHENSIVE PLAN AMENDMENTS, TEXT AND
MAP
Planning and Community Development Director Krauss reported that the
Planning Commission conducted a public hearing and recommended approval of
a Comprehensive Plan amendment, the PUD ordinance, the model homes
ordinance, and a bonding ordinance.
Mr. Krauss advised that the only outstanding issues relating to the PUD
ordinance at the time it was submitted to the Planning Commission were design,
signage and landscaping standards. The design standards have been drafted,
and are nearly complete. The model homes ordinance was recommended for
approval with one minor modification. The City has agreed to disagree with TLC
regarding the bonding for plat improvements. TLC proposed 125% for bonding
while the City proposed 150% for bonding. The City also proposed a one
percent administrative fee. According to Mr. Krauss, Senior Engineer Dennis
Selle has agreed to delete the administrative fee.
Mr. Krauss reported the Planning Commission recommended approval of the
Comprehensive Plan text and map amendments.
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April 27, 1998
Page 7
Councilmember Poe questioned the number of model homes allowed. He
suggested a sliding scale.
Councilmember Poe suggested that the bonding requirement should be based
on a mutually agreed estimate between the developer and the City. He also
suggested the ordinance should be clarified regarding default language. City
Engineer Dowdy also questioned whether the Council wants to address a limit on
outstanding bonds. Councilmember Poe suggested the ordinance also include
an irrevocable letter of credit in lieu of a bond.
Mr. Hendemon urged the Council to consider 125% bonding level.
IV. LAKELAND - PLANNED UNIT DEVELOPMENT
Councilmember Wagner referred to page 16, paragraph D of the PUD ordinance.
He expressed concern that the provision allows the City Engineer to approve
variances to City street standards. He suggested that the provision include
approval by the Public Works Committee.
Councilmember Wagner referred to page 17, paragraph 2.b. He expressed
opposition with 20-foot streets with no parking. Mr. Chuck Henderson explained
that the 20-foot streets are in areas where there is no parallel parking and allow
more design flexibility. Councilmember Wagner suggested redrafting the
provision to indicate it applies to alleys and not to residential collector streets.
Lakeland Attorney Allison Moss agreed to work on drafting new language.
Councilmember Wagner also suggested that the second paragraph of section 2.b
located on page 17 also include language that it is subject to review by the Public
Works Committee.
Councilmember Wagner referred to page 18, paragraph 2.d. He questioned
whether the City can lien the property for the cost of maintaining the streets, if the
homeowners' association fails to maintain the street. Councilmember Lewis
recalled that City Attorney Reynolds previously advised that the City can lien the
property. Councilmember Wagner requested Mr. Sheehy consult with City
Attorney Reynolds to determine if the City can lien the property.
Councilmember Wagner also questioned utility easements on private streets for
utilities such as cable, power and telecommunications. He suggested that
language be included to ensure restoration of the private streets to city
standards. Attorney Allison Moss advised that it is the homeowners' association
responsibility to ensure the restoration of the private street.
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April 27, 1998
Page 8
In response to a question from Councilmember Wagner, Planning and
Community Development Director Krauss advised that the school sites were
removed from the Comprehensive Plan. The PUD ordinance identifies school
sites as minor amendments unless the Planning Director determines they have
significance to a level that they must be treated as a major amendment.
Councilmembers Poe and Wagner suggested that the bonding ordinance include
a mutually agreeable percentage on a mutually agreeable estimated amount.
City Engineer Dowdy expressed support for the 150% bonding level.
Ms. Moss advised that the PUD ordinance presented to Council this evening is
different than the last draft she reviewed.
Councilmember Singer and Cerino requested the opportunity to review other
alternatives for bonding requirements.
Mr. Henderson noted that the PUD ordinance includes a design standard for
commercial development in a residential neighborhood. City staff is
recommending that the commercial buildings should be located on the boulevard
with parking behind. Mr. Henderson objected to staff recommendation and
recommended that the commercial buildings be located in the back of the
property with parking adjacent to the street. Planning and Community
Development Director Krauss advised that the provision in the PUD ordinance is
a Comprehensive Plan policy.
V. LAKELAND - PROPOSED AMENDMENTS TO CHAPTER 17.08 ACC
IMPROVEMENT METHODS
Please refer to discussion under Item IV of these minutes.
VI. LAKELAND - PROPOSED AMENDMENTS TO ACC Sections 17.10.070
and 17.10.080 regarding model homes and bonding
Please refer to discussion under Item IV of these minutes.
VII. ADJOURNMENT
There being no further discussion, the meeting adjourned at 7:55.
~ ~ da ~--_z~
Approved on the / y of ,1998.
Special City Council Study Session
April 27, 1998
Page 9
Charles A. Booth, Mayor Danielle Daskam, City Clerk
98m4-27