M I N U T E S KITSAP COUNTY BOARD OF COMMISSIONERS June 17, 2003 The Board of Commissioners met on the above-stated date. Present were Chair Jan Angel, Commissioner Chris Endresen, Commissioner Patty Lent, County Administrator Malcolm Fleming and Clerk of the Board, Opal Robertson. (THE BOARD OF COMMISSIONERS' PUBLIC MEETINGS AND PUBLIC HEARINGS ARE AUDIO AND VIDEO TAPED). ITEMS SET FOR TIME CERTAIN: 7:00) Meeting Called to Order with Pledge of Allegiance. 7:00 PM) Special public hearing to consider the proposed Ordinances relating to: 1) Development Impact Fees, Repealing Chapter 4.108 Kitsap County Code, "Development Impact Fees for Transportation and Recreation Facilities" and Chapter 4.112 Kitsap County Code, "Development Impact Fees for Public School Facilities", and Adding a New Chapter to the Kitsap County Code and 2) Amending the newly adopted Chapter 4.110 Kitsap County Code, "Impact Fees", to adopt new Impact Fee Rates for Roads, Parks and Schools with Phased Implementation. Randy Casteel, Director of Public Works, gave a brief summary of the two proposed ordinances stating Kitsap County currently has two impact fee ordinances adopted in 1992, one addressing parks and roads and the other addressing school facilities. In January of 2001, Casteel said the County contracted with Henderson /Young & Company to assist in updating the current impact fee ordinances and rates for schools, parks and roads as well as to assess the method used for the initial established impact fee rates and the capital facilities plan. He said they were also asked to make recommended changes. He said in July of 2001, the County also entered into an agreement with the school districts to include them on the update information received from Henderson/Young relative to the school impact fee ordinance and rates. Casteel said a stakeholders committee was formed to assist staff in developing ordinance changes and to review new fee structures and rates. He said the committee met several times and had lengthy discussions relative to population forecast, level of service standards, capital facilities and ordinance revision. Randy Young, Henderson/Young & Company, states the reason for the two ordinances is to separate the issue of the amount of the impact fees from what is a good way to develop fees. He said the first ordinance is meant to make no change to the rates but to replace current ordinance with a better, stronger and more understandable law as well as preserve the existing rates. He said the second ordinance proposes a specific plan for increasing the rates over a period of time. Young then summarizes key provisions of each ordinance and notes a technical change in the first ordinance stating that each place "occupancy permit" appears in the ordinance should be substituted for the term "certificate of occupancy." Rick Courson, Home Builders Association of Kitsap County, said the association believes quality schools, well designed and maintained roads and family friendly parks are vital to our community but funding of these have and will continue to place citizens and the county at odds. He urges the Board not to pass the increase because it would discourage economic growth and affordable housing. Kevin Ferguson, Bremerton School District, said these proposals were vital to the school districts in order for them to maintain the level of service in a growing environment. He believes they are a balanced approach and urges passage of both ordinances. Larry Elfendahl encourages postponement of the second part of option #2 ordinance and tabling it for a year. He encourages the various agencies to increase real estate excise tax in order to fund the county. Jack Hamilton recommends that an alternative method be fully investigated before increasing impact fees, give this matter over to a citizen taxpayer committee for review and development and that an accurate and reliable buildable land study be given top priority by the county with the study being completed within calendar year 2003. William Palmer opposes the impact fee ordinance and did not see a need for action on the second ordinance at this time. Richard Brown is concerned about buildable lands and recommends nothing be done on ordinance #2 and ordinance #1 should remain as is. Anthony Miles believes the impact fees will impair some people from realizing the "American Dream" of owning their own home. Vicki Hutton – Pass LeAnn Knight – Pass Vivian Henderson do not support any increase in impact fees. Larry Cappola opposes any increase in impact fees. Bill Hilton believes that the whole impact fees process is flawed logic. Tim Matthes believes there were too many unintended consequences and encourages the Board not to vote on either of the options. Dr. Catherine Davidson, Central Kitsap School District, said the impact fee program needed to be updated and that all schools were affected by new development. She supports the impact fees and urged the Board to vote yes. Randy Biegenwald opposes the way the impact fees are being done. Ken Akler said he is tired of paying high taxes and felt the impact fees were discriminatory. Craig Curtis said impact fees are currently the best method available to address mitigation of growth and that adoption of option #2 would not prevent a future implementation plan. He urges the Board to approve the plan. Bethany McDonald, North Kitsap School Board, said impact fees would help the schools and urges the Board to take positive action by adopting the amended ordinance and the fee schedule with the phasing plan. Steven Sanders supports the impact fees. Catherine Ahl urges the Board to support the impact fees. Frank MaHaffrey said there is a need for a better and more equitable way to fund schools but impact fees are not the way to do it. George Warrington said he is against option #2. Tom Donnelly thanked the Board and staff for the study done on the impact fees and that the majority of the questions/concerns asked tonight were addressed in the previous meetings. He urged the Board to send this project through the Planning Commission John Ahl supports both of the proposed ordinances. Gene Medina, North Kitsap School District, said the district has grown since 1997 by approximately 170 students and it would continue to grow approximately 1% per year. He urges the Board to adopt option #2. Nancy Moffatt said a real estate excise tax is not currently available as a mitigation measure. She said RCW 58.17.100 clearly requires appropriate provisions be made and it is up to this body to ensure that it occurs. Tom O'Brien, South Kitsap School District, ask the Board to support the revised impact fee ordinance and the rate ordinance. Helen Daly said Kitsap County's impact fees were low compared to other jurisdictions throughout the state and considers the impact fee to be fair. Jessica Olsen felt the impact fee process should be refurbished and the county should look at re-distributing any funds that are currently going the schools. She did not believe this was the way to fund schools. Dorothy Kent believes the impact fees should be applied to county roads. Linda Gabriel supports both ordinances. Richard Best, Central Kitsap School District, urges the Board to adopt both ordinances. Kamuron Gurol, Department of Community Development Director, submitted a copy of the first ordinance with suggested changes to improve its effectiveness and clarify some technical changes. Those changes were: 1) that each place "occupancy permit" appears in the ordinance should be substituted for the term "certificate of occupancy"; 2) additional language relative to exemptions; and 3) the effective date. Gurol said based on the Board's decision, staff will need to revisit the County's Capital Facilities Plan to ensure it is consistent with the approach taken here. Commissioner Endresen reiterated the changes: 1) changing occupancy permit to certificate of occupancy; 2) In Section 4.110.020.d.7 changing the mobile home double jeopardy – stating that this provision may not be combined with previous provisions of paragraph 4 in order to create an additional dwelling unit for which no impact fee is applicable; and 3) changing the effective date to January 1, 2004. Fae Smith – not present to speak. Robert Camp believes he is already paying enough in impact fees. Matt Ryan – not present to speak. Dan Baskins felt this is a regressive tax. Jean Sherrard believes people will decide not to live in Kitsap County because of these kinds of fees. Grace Yuan asked the Board to vote yes on both ordinances. Mike Bay – not present to speak. Jim Sharpe believes the people who move here should pay their own way and urges the Board to increase impact fees to reflect the true impact of housing on our community. Robert Baglio urges the Board to take in account affordable housing along with the other items mentioned in the ordinances. Discussion was held among the Board members regarding impact fees possibly being a one-time fee, receiving county funding on a constant basis for house sales, roads, parks and schools used by all county residents, possible increase to the real estate excise tax, economic development for Kitsap County, impact fees being a catch-22, the need to prepare for and accommodate county growth, infrastructure needs as a result of growth, more traffic enforcement, impact fees not being increased since 1992, Commissioner Endresen stating she was the second vote on the issues to include payment at certificate of occupancy into the ordinance, removing the double jeopardy for the mobile home replacement, ordinance #2 being a fair compromise, this not being a development issue, the affect on property taxes and the excise tax being a more equitable tax. Chair Angel closes the public hearing. A motion was made by Commissioner Lent and seconded by Commissioner Endresen that the Board enacts Ordinance No. 302-2003** thereby relating to Development Impact Fees, Repealing Chapter 4.108 Kitsap County Code, "Development Impact Fees for Transportation and Recreation Facilities" and Chapter 4.112 Kitsap County Code, "Development Impact Fees for Public School Facilities", and Adding a New Chapter to the Kitsap County Code; subject to amendments as stated by staff (Kamuron Gurol). Motion carries unanimously. A motion was made by Commissioner Lent and seconded by Commissioner Endresen that the Board enact Ordinance No. 303-2003** thereby amending the newly adopted Chapter 4.110 Kitsap County Code, "Impact Fees", to adopt new Impact Fee Rates for Roads, Parks and Schools with Phased Implementation as amended beginning July 1, 2004 and continuing with the increases beginning January of 2005 thereby allowing all parties to work together on the real estate excise tax in order to generate a equitable tax. Motion carries. Chair Angel voted no. Public meeting adjourned 9:45 PM. BOARD OF COUNTY COMMISSIONERS KITSAP COUNTY WASHINGTON __________________________________ JAN ANGEL, CHAIR __________________________________ CHRIS ENDRESEN, COMMISSIONER __________________________________ PATTY LENT, COMMISSIONER ATTEST: OPAL ROBERTSON DATE APPROVED CLERK OF THE BOARD * See Resolution Journal Volume No. 58 ** See Ordinance Journal Volume No. 12 NEXT REGULAR BOARD OF COMMISSIONERS MEETING WILL BE JUNE 23, 2003. Visit the County's website at www.kitsapgov.com NOTE: KITSAP COUNTY DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY. INDIVIDUALS WHO REQUIRE ACCOMMODATIONS SHOULD CONTACT THE COMMISSIONER'S OFFICE AT (360) 337-4428 OR TDD (360) 337-7275 OR 1-800-816- 2782. (PLEASE PROVIDE TWO WEEKS NOTICE FOR INTERPRETER SERVICES). UPCOMING TIMED AGENDA ITEMS: (PLEASE NOTE: These dates and times are tentative and subject to change) JUNE 23, 2003: 10:00) A Public hearing to consider a Resolution authorizing the temporary closure of Crescent Valley Road SE between SE Nelson Road and Banner Road SE from Monday, July 7 through Friday, July 11, 2003 for repair to the road waterside lane damaged by erosion in South Kitsap, Commissioner District No. 2. Net Fiscal Impact: $60. Source of Funds: Road Fund. 10:00) B Public hearing to consider a Resolution temporarily closing Glenwood Road SW to all classes of vehicular and pedestrian traffic between SW Lake Flora Road and SW J.H. Road for widening, resurfacing, installation of storm sewer drainage facilities, planting and other work. Anticipated time of closure will be from Tuesday, July 15, 2003 until Monday, August 4, 2003. This road project is located in South Kitsap, Commissioner District No. 2. JULY 14, 2003: 10:00) A Public hearing to consider a Resolution to vacate a portion of East Main Street within the Plat of Sitterly's Addition to Manchester; said road located in South Kitsap, Commissioner District No. 2. KITSAP COUNTY COMMISSIONERS MINUTES, JUNE 17, 2003 Page 135 Page 129