NOTICE OF INTENTION THURSTON COUNTY BOUNDARY REVIEW BOARD APPLICATION FOR ANNEXATION/MERGER
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1 Thurston County Boundary Review Board 2000 Lakeridge Drive SW Olympia, WA (360) / (360) (Fax) davisj@co.thurston.wa.us NOTICE OF INTENTION THURSTON COUNTY BOUNDARY REVIEW BOARD APPLICATION FOR ANNEXATION/MERGER SUBMITTAL REQUIREMENTS Annexation: Original + 6 copies CD containing all documents as separated.pdf format files Waiver: Original + 8 copies CD containing all documents as separated.pdf format files 1. Jurisdiction Requesting Annexation/Merger: City of Lacey Responsible Official: Ryan Andrews, Planning Manager Phone: (360) FAX: (360) randrews@ci.lacey.wa.us 2. If number of parcels is less than three, please list the owners: Proposed annexation of 9 parcels with a combined size of approximately 6.71 acres in addition to the adjacent right-of-way for Martin Way. Assessor s Parcel No s: , , , , , , , and Method used to initiate the proposed action: 60% Petition Method RCW 35A BOUNDARY REVIEW BOARD
2 4. Location (address, if assigned): See petition for individual addresses. Proposed annexation area is generally located north of Martin Way E, east of River Ridge Drive NE, and west of Meridian Road NE. 5. Legal Description. A copy of the legal description of the perimeter boundaries of the area involved in the proposed action certified by a registered engineer or land surveyor (attach as a separate exhibit): Legal description is attached. 6. Size in Acres: 6.71 acres plus the adjacent right-of-way for Martin Way East. 7. Assessed Valuation (attach Assessor's information): $4,242,950 ( valuation) 8. Please state the nature of this action and the relevant statutory citation (i.e., annexation for municipal purposes pursuant to RCW ): Annexation using the direct petition method pursuant to RCW 35A for code cities. 9. Current Joint Plan Designation: Mixed Use High Density Corridor 10. Is the site currently served by sewer or water? X Sewer X Water Neither If no, specify services desired: If sewer or water desired, include map showing location of nearest lines. 11. When is extension of water and sewer service planned to the area: Lacey water and sewer already serve the area. 12. Does this proposal affect any other interjurisdictional agreements? NOTICE OF INTENTION 2 THURSTON COUNTY BOUNDARY REVIEW BOARD
3 Yes X No If yes, please list these agreements: Not applicable. 13. Does this proposal conform to adopted county-wide planning policies on annexation? Yes, the annexation will accomplish an orderly transfer of contiguous lands within an urban growth area to an adjoining city. Also, the City of Lacey and Thurston County Land Use Element for the City of Lacey and the Lacey Urban Growth Area (joint plan) identifies the comprehensive plan designation for these properties which will be retained upon annexation. 14. Other specific Reason(s) for Annexation: Submittal of a request by more than 60% of the assessed valuation of the area to be annexed into the City of Lacey. 15. Explain how this proposal furthers the objectives of the Boundary Review Board (as applicable) (RCW ) [attach additional pages if necessary] (Some of these items may not apply because of Growth Management Agreements.): a. Preservation of natural neighborhoods and communities: Annexation will have no effect on existing neighborhoods. Joint planning ensures the consistency of land use regulations between the UGA and city limits. b. Use of physical boundaries, including but not limited to bodies of water, highways, and land contours: Annexation generally follows existing property lines and streets and connects to existing Lacey city limits at Martin Way. c. Creation and preservation of logical service areas: Utility service areas will not change as a result of this annexation. Police service will be provided by Lacey Police instead of Thurston County Sherriff. LPD already provides some service to the area for mutual aid calls. Fire District boundaries will not change as the property is currently served by Fire District 3 which will continue upon annexation. NOTICE OF INTENTION 3 THURSTON COUNTY BOUNDARY REVIEW BOARD
4 d. Prevention of abnormally irregular boundaries: Annexation area follows established streets and parcel boundaries. No islands or irregular boundaries would be created by the proposal. e. Discouragement of multiple incorporations of small cities and encouragement of incorporation of cities in excess of ten thousand population in heavily populated urban areas Not applicable. f. Dissolution of inactive special purpose districts: Not applicable. No known inactive special purpose districts apply to the annexation area. g. Adjustment of impractical boundaries: Not applicable. h. Incorporation as cities or towns or annexation to cities or towns of unincorporated areas which are urban in character The proposed annexation area contains properties already urban in character. Those properties that are currently undeveloped will develop to urban land uses consistent with the Land Use Element for the Lacey Comprehensive Plan. i. Protection of agricultural lands: Not applicable. No agricultural lands would be affected by the proposal. For your information, the Boundary Review Board can consider the following factors (RCW ) in deciding whether a particular decision furthers the objectives stated above: 1. Population and territory 2. Population density 3. Land area and land use 4. Comprehensive use plans and zoning 5. Per capita assessed valuation 6. Topography, natural boundaries and drainage basins, proximity to other populated areas NOTICE OF INTENTION 4 THURSTON COUNTY BOUNDARY REVIEW BOARD
5 7. The existence of prime agricultural soils and agricultural uses 8. The likelihood of significant growth in the area and in adjacent incorporation and unincorporated areas during the next ten years 9. Location and most desirable future location of community facilities 10. Municipal services 11. Need for municipal services 12. Effect of ordinances, governmental codes, regulations and resolutions on existing uses 13. Present cost and adequacy of governmental services and controls in area 14. Prospects of governmental services from other sources 15. Probable future needs for such services and controls 16. Probable effect of proposal or alternative on cost and adequacy of services and controls in area and adjacent area 17. The effect of the finances, debt structure, and contractual obligations and rights of all affected governmental units 18. The effect of the proposal or alternative on adjacent areas, on mutual economic and social interests, and on the local governmental structure of the county 19. Decisions of the Boundary Review Board must also be consistent with the Washington State Growth Management Act RCW 36.70A.020, 36.70A.110, and 36.70A.210. NOTICE OF INTENTION 5 THURSTON COUNTY BOUNDARY REVIEW BOARD
6 REQUIRED ATTACHMENTS: SUBMITTAL REQUIREMENTS Annexation: Original + 6 copies CD containing all documents as separated.pdf format files Waiver: Original + 8 copies CD containing all documents as separated.pdf format files THURSTON COUNTY BOUNDARY REVIEW BOARD: I. Notice of Intention (the Boundary Review Board s Notice). II. Maps (NOTE: Must have legends/colored maps no larger than 11 x 17 inches are encouraged in.pdf format and attachments.) The following maps must be submitted with all notices of intention: A. Map of Entire City/Area. No larger than 11 x 17 inches: 1. The general vicinity of the proposal. 2. The area proposed for annexation, highlighted in some manner. 3. The boundaries of other cities near the annexation area (highlighted if not readily discernable). 4. Major streets/roads identified. B. Assessor's Map showing specific parcel(s) and immediate vicinity, (reduced copy is preferable). Valuable, but not required: 1. Map showing parcel numbers for the proposal and immediate vicinity 2. Map showing owner names for the proposal and immediate vicinity C. Physical Features. One or more maps showing the following (when available): 1. Dominant physical features such as lakes, creeks, and ravines 2. Flood plain boundaries (100-year) 3. Railroad lines 4. All public roads near the annexation/merger 5. Commercial agriculture lands (when this information is available) D. Service Area and Other Boundaries. Map showing the proposed annexation and its relationship to the Urban Growth Boundary. NOTICE OF INTENTION 6 THURSTON COUNTY BOUNDARY REVIEW BOARD
7 E. Other Maps 1. Existing joint plan zoning. 2. Location of water and sewer mains within proposed annexation, if any, and those nearby (any jurisdiction). III. $50.00 check made out to Thurston County. (Note: fee will not be processed until application is determined complete) IV. Election Method: Complete copy of minutes of the meeting during which the City Resolution calling for annexation election is adopted or the city accepted the petition for election (certified if appropriate); OR V. Direct Petition Method: 1. Affidavit of publication of the initial public meeting notice. 2. Copy of minutes of the public meeting required in which the city accepts the proposed annexation. 3. A signed copy of the decision by the city accepting the proposed annexation. The Notice on Intent to annex needs to be filed with the Boundary Review Board within 180 days of the date when the city accepts the proposed annexation. 4. Affidavit of publication of the public hearing as required under RCW35A VI. VII. Copies of the signed petitions for annexation with parcel numbers of the properties, which are represented by the signatures this does not apply to cities. Copy of the Declaration of Petition Sufficiency from the Office of the Thurston County Assessor (see RCW (4) for non-code cities, or 35A (4) for code cities). VIII. SEPA Determination (except cities or towns per RCW 43.21C.222) Q:\Planning\Amanda Save File\Annexation VD\BRB Clerk Review\Administrative\Notice-of-Intent doc NOTICE OF INTENTION 7 THURSTON COUNTY BOUNDARY REVIEW BOARD
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18 UTILITIES COMMITTEE MINUTES AUGUST 12, :00 4:33 P.M. COUNCIL PRESENT: CHAIR JEFF GADMAN, VIRGIL CLARKSON STAFF PRESENT: SCOTT SPENCE, SCOTT EGGER, RYAN ANDREWS, RICK WALK, PETER BROOKS, CAROL LITTEN COUNCIL EXCUSED: JASON HEARN ACTION: MOTION: APPROVE UTILITIES COMMITTEE AGENDA MOTION TO APPROVE AGENDA MADE, SECONDED, AND CARRIED BY COUNCILMEMBERS CLARKSON AND GADMAN. MARTIN WAY EAST ANNEXATION STAFF: ACTION: MOTION: RYAN ANDREWS, PLANNING MANAGER RECOMMEND THAT FULL COUNCIL PROCEEDS WITH THE PROPOSED MARTIN WAY EAST ANNEXATION PROPOSAL WITH THE FOLLOWING CONDITIONS: 1) AUTHORIZE THE APPLICANTS TO CIRCULATE A PETITION AND GATHER SIGNATURES OF PROPERTY OWNERS REPRESENTING AT LEAST 60% OF THE ASSESSED VALUE OF THE ANNEXATION PROPERTY DEMONSTRATING THEIR CONSENT TO ANNEX; 2) REQUIRE THE TWO PARCELS EAST OF THE SUBMITTED NOTICE OF INTENT TO COMMENCE ANNEXATION (ASSESSOR S PARCEL NO. S AND ) ALSO BE INCLUDED WITHIN THE BOUNDARY OF THE AREA TO BE CONSIDERED FOR ANNEXATION; 3) REQUIRE THE ASSUMPTION OF ALL OR OF ANY PORTION OF EXISTING CITY INDEBTEDNESS BY THE AREA TO BE ANNEXED. 4) REQUIRE PROPERTY OWNERS TO BRING THEIR STORMWATER DRAINAGE UP TO CITY STANDARDS. MOTION MADE, SECONDED AND CARRIED BY COUNCILMEMBERS CLARKSON AND GADMAN. The City has received a notice of intent to commence annexation proceedings filed by Sigrid Esfeld, Michael L. Citrak, and Peter M. Citrak. The filing of the notice is the first step in the annexation process under the petition method (RCW 35A ), which requires a petition filed by property owners representing a minimum of 10% of the valuation of the area proposed for annexation. The City has verified that the ownership does comprise a minimum Utilities Committee June 10, 2016 Page 1
19 of more than 10% of the assessed valuation for general taxation purposes of the properties for which annexation is requested. As a result of the petition, the Utilities Committee will review the annexation proposal to verify that the City can effectively provide utility service to the proposed annexation area. Additionally, the Committee will review the boundaries of the annexation area for any recommended modifications. Peter Brooks, Water Resources Manager, recommended that a condition be added to the annexation proposal that would require the property owners to bring their stormwater drainage up to city standards. The State Department of Health has expressed concern to the property owner about the graywater interceptor and is requesting removal. If the city approves the annexation without first addressing this issue, it would inherit a pre-existing condition from the county. Utilities Committee June 10, 2016 Page 2
20 MINUTES OF A REGULAR MEETING OF THE LACEY CITY COUNCIL HELD THURSDAY, NOVEMBER 10, 2016, IN LACEY COUNCIL CHAMBERS. CALL TO ORDER: PLEDGE OF ALLEGIANCE: COUNCIL PRESENT: STAFF PRESENT: APPROVAL OF AGENDA AND CONSENT AGENDA: Mayor Ryder called the meeting to order at 7:00 p.m. Mayor Ryder led the Pledge of Allegiance. A. Ryder, C. Pratt, V. Clarkson, J. Hearn, J. Gadman, L. Greenstein, M. Steadman S. Spence, D. Schneider, D. Pierpoint, S. Egger, T. Woo, L. Gotelli, J. Burbidge, C. Litten, R. Andrews, M. Coppin, K. Wolfe Consent Agenda Items: A. Worksession minutes of October 20, B. Council minutes of October 27, 2016, C. A motion to approve payment of claims, wages and transfers for October 26, 2016 through November 1, DEPUTY MAYOR PRATT MOVED TO APPROVE THE CONSENT AGENDA AND AGENDA. COUNCILMEMBER GADMAN SECONDED. MOTION CARRIED. PUBLIC RECOGNITION: Mary Coppin, PA Community Liaison, recognized three major donors to the 50 th Food Drive, including the Thurston County Food Bank, LDS Church members, led by Pao and Yvette Lufau, and residents of Panorama inspired by Howard Burton who was the brainchild of the event. Close to $30,000 was raised and 144 hours of volunteer time was donated. Page 1 of 6
21 PUBLIC COMMENTS: Rozwell Townsend addressed to raise awareness about the need for affordable housing. He noted that he will advance this cause through political, intellectual reform. PUBLIC HEARING: Mayor Ryder opened a public hearing at 7:16 p.m. to receive public comment on the proposed 2017 Budget. The purpose of the hearing is to accept public comment and to provide staff with any guidance or direction regarding the proposed 2017 Budget. Any City Council direction will be incorporated into the budget, which is scheduled for adoption on December 15, The total Proposed 2017 Budget is $122,653,037, which is a decrease of $12,580,357 compared to the amended 2016 Budget. Increasing labor costs and workforce considerations are offset by reductions to interfund transfers and capital improvement program expenditures. Revenue growth primarily from new construction sales tax helps fund growing cost to maintain service levels. The total proposed General Fund Budget is $43,071,686. This is a decrease of $259,249 or 0.6 percent compared to the amended 2016 General Fund Budget. The following change has been made to the proposed 2017 Budget subsequent to the City Manager s presentation of the proposed budget on October 27: The 2017 property tax projection has been increased $61,508 from the addition of the annual refund levy calculation. The proposed 2017 Budget maintains all services and provides funding for a number of capital projects and improvements such as 50 th Anniversary public art, City Hall and Police Station front counter Page 2 of 6
22 improvements, Maintenance Shop asphalt replacement, Woodland Creek Community Park Trail Connection, College and 22 nd Roundabout, Hogum Bay Road improvements, Marvin Road safety improvements, LED street light upgrades, well replacements, water transmission line replacements, water reservoir improvements, Steilacoom Regional lift station, and completion Lift Station #2 (Westlake Drive). Mayor Ryder closed the public hearing at 7:32 p.m. and reopened the regular Council meeting. RESOLUTIONS: Resolution No approves a Declaration of Substantial Need to increase the Ad Valorem Tax Levy by one percent resolution. RCW (2)(c) sets the property tax limit factor for a taxing jurisdiction with a population over 10,000 as the lesser of 101 percent or 100 percent plus inflation. The inflation factor to be used for the 2017 property taxes is percent. Property tax is a significant source of revenue for the General Fund, so the full one percent increase is needed to address increasing expenditure needs. The 2017 Proposed Budget is balanced based on exercising the full 101 percent revenue limit increase in the amount of $59,317. The 2017 Proposed Budget includes appropriations that maintain the historical levels of service. The appropriations include major components that are projected to rise at a rate higher than inflation. Those major components include salaries, wages, and employee benefits. This proposed increase is in addition to adjustments resulting from the addition of new construction, increases to the state assessed property, and allowable adjustments for annexation and refunds. Page 3 of 6
23 A majority plus one must approve the resolution. MAYOR RYDER MOVED TO APPROVE RESOLUTION NO TO DECLARE SUBSTANTIAL NEED. COUNCILMEMBER STEADMAN SECONDED. MAYOR RYDER, DEPUTY MAYOR PRATT, COUNCILMEMBERS CLARKSON, GADMAN, GREENSTEIN AND STEADMAN VOTED YES. COUNCILMEMBER HEARN VOTED NO. MOTION CARRIED. ORDINANCES: Ordinance No adopts the increase of Ad Valorem Tax Levy by one percent resolution. COUNCILMEMBER STEADMAN MOVED TO ADOPT ORDINANCE NO TO APPROVE THE AD VALOREM TAX LEVY BY ONE PERCENT RESOLUTION. COUNCILMEMBER GADMAN SECONDED. MOTION CARRIED. MAYORS REPORT: Mayor Ryder remarked that he was honored to be invited as a key note speaker at the Capitol Rotunda to celebrate Veteran s Day. CITY MANAGER S REPORT: Ryan Andrews, Planning Manager, presented Council with a request to approve a motion to proceed with the proposed Martin Way East annexation proposal that includes the following provisions: 1) Authorize the applicants to circulate a petition and gather signatures of property owners representing at least 60% of the assessed value of the annexation property demonstrating their consent to annex; 2) Require the two parcels east of the proposed area (assessor s parcel no. s and ) also be included within the boundary of the area to be considered for annexation; Page 4 of 6
24 3) Require the assumption of all or of any portion of existing City indebtedness by the area to be annexed; and 4) Waive the requirement for completion of an annexation study in accordance with the City s annexation policies prior to adoption of an ordinance to formally annex the area or make application to the Boundary Review Board. COUNCILMEMBER GADMAN MOVED TO PROCEED WITH THE PROPOSED MARTIN WAY EAST ANNEXATION PROPOSAL THAT INCLUDED SPECIFIC PROVISIONS, SUBJECT TO REQUIREMENTS LISTED BY STAFF IN ITEMS 1-4. COUNCILMEMBER STEADMAN SECONDED. MOTION CARRIED. BOARDS & COMMISSIONS: HHSC & CIP Councilmember Clarkson reported the board will discuss low rent housing and homelessness at the November 14 meeting. LOTT Deputy Mayor Pratt reported the Board received a presentation on sea level rising, passed a collective bargaining agreement, and approved the CIP. MAYORS FORUM Mayor Ryder reported the group discussed charges from the county for the cost of felony inmates, and agreed the jurisdictions should not bear this cost. The Mayor of Tenino requested support for a request of grant funding to become a regional agricultural park. Mayor Ryder stated he would send a letter of support. Page 5 of 6
25 Thurston County Coalition against Human Trafficking Councilmember Hearn reported the group has raised awareness, education, legislation, enforcement, and are now in the process of fundraising. TPB Mayor Ryder reported that TRPC has requested that the TPB review the federal funding requests with a recommendation of projects for funding. TRPC Councilmember Clarkson reported the City of Lacey has received funding for the College Street / 22 nd Avenue roundabout, and for pedestrian and bike lanes in Lacey and the urban growth area. Thurston 911 Councilmember Greenstein announced the Board approved the 2017 Budget. He reported that an arrest has been made related to the flood of 911 calls received the night of the service event. ADJOURN: Mayor Ryder adjourned the meeting at 8:43 p.m. MAYOR: ATTESTED BY CITY CLERK: DATE APPROVED: Page 6 of 6
26 LACEY CITY COUNCIL MEETING November 10, 2016 SUBJECT: Martin Way East Annexation. Project no RECOMMENDATION: Approve a motion to proceed with the proposed Martin Way East annexation proposal that includes the following provisions: 1) Authorize the applicants to circulate a petition and gather signatures of property owners representing at least 60% of the assessed value of the annexation property demonstrating their consent to annex; 2) Require the two parcels east of the proposed area (assessor s parcel no. s and ) also be included within the boundary of the area to be considered for annexation; 3) Require the assumption of all or of any portion of existing City indebtedness by the area to be annexed; and 4) Waive the requirement for completion of an annexation study in accordance with the City s annexation policies prior to adoption of an ordinance to formally annex the area or make application to the Boundary Review Board. STAFF CONTACT: ORIGINATED BY: ATTACHMENTS: FISCAL NOTE: Scott Spence, City Manager Rick Walk, Community Development Director Ryan Andrews, Planning Manager Community Development Department (by private applicant) 1. Notice of Intent to Commence Annexation 2. Existing Zoning 3. Aerial Photo 4. Existing Sewer Lines 5. Existing Water Lines and Water Service Areas None. PRIOR REVIEW: August 12 and October 14, 2016, Utilities Committee Meetings Page 1 of 6
27 BACKGROUND: The City has received a notice of intent to commence annexation proceedings filed by Sigrid Esfeld, Michael L. Citrak, and Peter M. Citrak. The filing of the notice is the first step in the annexation process under the petition method (RCW 35A ), which requires a petition filed by property owners representing a minimum of 10% of the valuation of the area proposed for annexation. The City has verified that the ownership does comprise a minimum of more than 10% of the assessed valuation for general taxation purposes of the properties for which annexation is requested. As a result of the petition, the City Council must pass a motion notifying the petitioners of its approval, rejection, or modification of the annexation area s geographical boundaries. If the Council votes to approve the 10 % petition, then the applicant moves forward on obtaining a petition from a total of 60% of the assessed valuation of the area. Proposed Annexation Area The area proposed for annexation is located in the Meadows Planning Area and within the Lacey Urban Growth Area north of Martin Way E, east of River Ridge Drive NE, and west of Meridian Road NE. The area includes 6.13 acres in seven separate tax parcels. The largest parcel is 2.47 acres in size and is the location of the Puerto Del Sol Restaurant (formerly the Shipwreck Café). On the same parcel, behind the Puerto Del Sol Restaurant, is an existing single-family residence. Additionally, Summit Towing is a tenant in the eastern portion of the restaurant. There are three other businesses in the annexation area east of Puerto Del Sol including the Cedar Inn Tavern, Redline Cycle, and Okie s Barber Shop. The assessed value of these parcels is $2,814,400, of which the Esfeld/Citrak ownership represents $728,650, or approximately 26 percent of the assessed valuation. Other than the existing businesses and one home, the area proposed to be annexed is undeveloped and is primarily forested with second and third-growth Douglas firs. There are no identified critical areas in the area proposed for annexation with no identified water bodies, steep slopes, or critical aquifer recharge areas. Outside of the proposed annexation area to the north are the Abbey Rowe Apartments and to the south across Martin Way are the Madison Apartments both of which are also zoned Mixed Use High Density Corridor. The subject properties are zoned Mixed Use High Density Corridor (MHDC). The purpose of the MHDC zone is to allow for commercial uses and other mixed use development in a way that serves the needs of the neighborhood and the community and enhances the appearance and identity of the mixed high density corridor. The intent also includes encouraging a variety of businesses which offer retail goods or consumer services that appeal to pedestrians and/or serve the needs of the surrounding neighborhood. In addition to commercial uses, the MHDC zone also allows multi-family residential uses at a minimum of 12 units per acre. In accordance with the Countywide Planning Policies and joint Page 2 of 6
28 planning agreements with Thurston County, the zoning would remain MHDC upon annexation. Annexation Boundary The area proposed for annexation includes the properties as described in the notice of intent to commence annexation proceedings including the properties owned by the Esfeld/Citrak ownership, Wolim Inc., and Easton Properties One. This boundary, as proposed, would connect to the current city limits to the west of the Puerto Del Sol Restaurant. This configuration is a logical extension and would not create any unincorporated islands. There are two parcels to the east of the proposed annexation area that would make the area proposed for annexation more logical. The two parcels are under the same ownership and contain the A1 Japanese Auto Repair and an existing used car dealership. The City Council does have the opportunity to modify any boundaries prior to the applicant proceeding with the annexation. In this case, staff is recommending that the two parcels to the east of the proposed area (assessor s parcel no. s and ) also be included within the boundary of the area to be considered for annexation to create more logical boundaries. With annexation, the associated street frontage and right-of-way is also annexed. Therefore, Martin Way and its associated right-of-way would be annexed from the current city limits boundary to the eastern boundary of the proposed annexation area. Utilities The properties are located partially within the City of Lacey s water service area. The four Esfeld/Citrak properties are located within the City s water service area, however, the Eason Properties One and Wolim properties are served by a private well located on the Eason property. Should the two parcels east of the proposed annexation area be considered for annexation, they are also served by a private water system. As currently configured, any water service to these properties would be served by the private water systems unless a request was made to and approved by the owners to remove the properties from the service area. Should that occur, the properties would be added to the City s water service area with the closest point of connection to the City s water service along the south side of Martin Way to an existing 12-inch water main. City of Lacey sewer service is available with a 12-inch line along the south side of Martin Way. Sewer is also available to the north at the Abbey Rowe Apartments, however, easements would need to be obtained from the property owner and additional study would need to be done to assess whether this was a viable route. Upon development of the properties within the annexation area, sewer service would be required to be extended. The area is also served by private utilities including Puget Sound Energy and Comcast. No issues are expected concerning provision of these utilities to the area. Page 3 of 6
29 Taxes, Fees, and Services Typically, as part of an annexation proposal, a full annexation study is performed to outline all issues associated with the annexation including taxes and fees. However, with the small area to be annexed and since all of the properties are commercial, there is little benefit in having the applicant complete a study. The city would benefit from additional property, sales, and B&O taxes associated with the existing and future businesses and the revenue associated with any future land use and building permits. This revenue would offset any costs associated with additional law enforcement calls and/or upkeep of Martin Way in this area which are the only additional services the city would provide upon annexation. It is the City Council s option to require an annexation study; however, staff believes that in this can be handled through analysis in the staff report and would recommend that the applicant not be required to complete one. Utilities Committee Review At the August 12, 2016, meeting of the Utilities Committee, staff provided a briefing on the notice of intent to commence annexation proceedings. At the briefing, the committee was made aware of a private drinking water well located behind the existing Puerto Del Sol Restaurant that serves both the restaurant and the property to the east. Lacey Water Resources staff provided information that the well has been identified as a concern for potential contamination by the Washington State Department of Health the agency that regulates the private well and associated small water system. Dan Eason, owner of the property, stated that the issue of concern is with the stormwater runoff associated with Martin Way. As described by Mr. Eason, he believes the runoff from Martin Way enters his property onto the restaurant parking lot and diverts to a low area behind the restaurant where the well is located, thereby creating the contamination issue. A follow-up briefing was held on October 14, 2016, to clarify questions that were raised as a result of the initial Utilities Committee meeting. The questions which were brought up as a result of the last Utilities Committee included: Q: Would the City be subject to any liability for this pre-existing issue upon annexation of the property? A: The stormwater and potential contamination issue has been occurring since the property was developed in the 1950 s. Since the property was developed, any runoff associated with the northern half of Martin Way has been allowed to drain to Mr. Eason s property. The assertion by Mr. Eason that the issue has been compounded by the raising of the crown of Martin Way is not a City issue because the work was completed by another agency. Therefore, the City would not be liable for these issues. Q: Would the City provide any corrective action to this pre-existing condition upon annexation? Page 4 of 6
30 A: Annexation of this area does not commit the City to provide corrective action for the pre-existing issue. The issue is one that needs to be corrected by the private property owner through the protection of the well, if required to do so. As an alternative, city water is available to site. Should the well become contaminated in the future, or should the property owner choose to do so, city water service can be provided. Connection to city water service would be at the property owner s expense. Q: Would the City require corrective action by the property owner as a condition of annexation? A: The City would not mandate, as a condition of annexation, any action that would require Mr. Eason to address any potential concern related to contamination of his private well. As previously mentioned, alternatives exist (including connection to City water) should the property owner choose to do so. The Utilities Committee is recommending that the 10 percent petition be accepted subject to recommendations in this staff report. Process The applicant has submitted a notice of intent to commence annexation using the petition method of annexation (RCW 35A ). Using the petition method, property owners representing a minimum of 10 percent of the assessed valuation of the property proposed for annexation are required to submit the notice. After filing the petition, the City Council must pass a motion notifying the petitioners of its approval, rejection, or modification of the annexation area s geographical boundaries. If the Council votes to approve the petition, then the applicant moves forward on obtaining a petition from a total of 60% of the assessed valuation of the area. Once the City receives the 60% petition, the City can move forward on annexation proceedings. Recommendation The City Council will review the annexation request under the 60% petition method and is requested to pass a motion indicating the following: 1) Authorize the applicants to circulate a petition and gather signatures of property owners representing at least 60% of the assessed value of the annexation property demonstrating their consent to annex; 2) Require the two parcels east of the proposed area (assessor s parcel no. s and ) also be included within the boundary of the area to be considered for annexation; 3) Require the assumption of all or of any portion of existing City indebtedness by the area to be annexed; Page 5 of 6
31 4) Waive the requirement for completion of an annexation study in accordance with the City s annexation policies prior to adoption of an ordinance to formally annex the area or make application to the Boundary Review Board. Page 6 of 6
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34 MINUTES OF A REGULAR MEETING OF THE LACEY CITY COUNCIL HELD THURSDAY, MARCH 23, 2017, IN LACEY COUNCIL CHAMBERS. CALL TO ORDER: Mayor Ryder called the meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE: Mayor Ryder led the Pledge of Allegiance. COUNCIL PRESENT: A. Ryder, C. Pratt, V. Clarkson, L. Greenstein, M. Steadman COUNCIL EXCUSED: J. Hearn STAFF PRESENT: S. Spence, D. Schneider, D. Pierpoint, S. Egger, T. Woo, J. Burbidge, R. Walk, R. Andrews, T. Palmateer, T. Reisher, C. Osborn, P. Lovell, P. Levy, K. Benedict, P. Brooks, T. O Neal, C. Litten APPROVAL OF AGENDA AND CONSENT AGENDA: Consent Agenda Items: A. Council worksession minutes of March 2, 2017 B. Council meeting minutes of March 9, 2017 C. A motion to approve payment of claims, wages, and transfers for 3/1/17 through 3/14/17. COUNCILMEMBER STEADMAN MOVED TO APPROVE THE CONSENT AGENDA AND AGENDA. COUNCILMEMBER GREENSTEIN SECONDED. MOTION CARRIED. PUBLIC RECOGNITION: Tim Reisher, Transportation Manager Public Works Operations, recognized participants in the Adopt-A- Roadway Program who have volunteered more than ten years. Volunteers from Grace Covenant Church pick up Page 1 of 9
35 trash along Martin Way East from College Street to Desmond Drive. Volunteers Greg and Zoe Tolber and Kara Larsen picked up trash along Meridian Drive from Orion Street to College Street. The Mayor expressed the city s appreciation for their efforts. Mayor Ryder welcomed visitors from Minzk Mazowiecki, Lacey s Sister City, who are participating in the Art Exhibit and Chopin Concert at South Puget Sound Community College. Mary Kirker, President of the Lacey-Minsk Mazowiecki Sister City Association, expressed appreciation to the City Council and the City of Lacey for its support of this event. PUBLIC COMMENTS: Scott Hanauer, CEO Community Youth Services, expressed his appreciation for the recognition received by the CYS Youth in Service AmeriCorps volunteers as part of the national services offered in Thurston County. He encouraged all to contact their legislative representatives to preserve federal funding for national service programs. PUBLIC HEARING: Mayor Ryder opened a public hearing at 7:17 p.m. to receive input related to the Martin Way East Annexation Project No Ryan Andrews, Planning Manager, stated the City has received a petition for annexation filed by Sigrid Esfeld, Michael L. Citrak, Peter M. Citrak, and Dan Eason representing Eason Properties One, LLC using the 60 percent petition method (RCW 35A ). The Thurston County Assessor s Office has verified that the signatures represent not less than 60 percent of the assessed valuation for general taxation of the property for which the annexation has been petitioned (RCW 35A ). The area proposed for annexation is located in the Meadows Planning Area and within the Lacey Urban Growth Area north of Martin Way E, east of River Ridge Drive NE, and west of Meridian Road NE. The area Page 2 of 9
36 includes 6.71 acres in nine separate tax parcels in addition to the right-of-way associated with Martin Way. Martin Way and its associated right-of-way would be annexed from the current city limits boundary to the eastern boundary of the proposed annexation area. Procedurally, the annexation is required to be sent to the Thurston County Boundary Review Board (BRB) for their review. Once the City holds a public hearing, the BRB process will begin. If the Boundary Review Board declines to assert jurisdiction, then the application returns to the Council for final consideration in ordinance form. DEPUTY MAYOR PRATT MOVED TO SEND A PETITION FOR THE MARTIN WAY EAST ANNEXATION PROJECT NO TO THE BOUNDARY REVIEW BOARD. COUNCILMEMBER STEADMAN SECONDED. MOTION CARRIED. Mayor Ryder closed the public hearing at 7:28 p.m. PROCLAMATION: Mayor Ryder and Council proclaimed April 4, 2017, as Mayor and County Recognition Day for National Services. David Reid, Program Coordinator - Washington Service Corps, recognized Kim Benedict, PW Water Resources Specialist and Paulina Levy, AmeriCorps volunteer for their participation in facilitating these community service projects. He expressed his appreciation to the Lacey City Council and city staff for their support during these efforts. REFERRAL FROM PLANNING COMMISSION: Ordinance No adopts the Capital Facilities Plan. Capital Facilities Plans are considered a mandatory element of the city s overall Comprehensive Plan by the Growth Management Act as set forth in RCW 36.70A. A Capital Facility Plan element must show an inventory of existing capital facilities, their locations, and a forecast of Page 3 of 9
37 the future needs to include locations and capacities. It must show a least a six-year plan that details how the city intends to finance the cost of the facilities consistent with the city s revenue forecast. This new annual update, the Capital Facilities Plan, includes an Executive Summary, an Introduction, and sections for General Government, Parks, Transportation, Wastewater, Stormwater, Water and applicable Appendices. It updates all capital projects planned in the current six-year window of 2017 to 2022, and future years to COUNCILMEMBER GREENSTEIN MOVED TO ADOPT ORDINANCE NO APPROVING THE CAPITAL FACILITIES PLAN. DEPUTY MAYOR PRATT SECONDED. MOTION CARRIED. Ordinance 1507 adopts LMC Chapter pertaining to the collection of school impact fees; amends LMC Chapter 14.24, Environmental Policy; LMC Chapter 16.53, Historic Preservation & Cultural Resources; and adopts the Standard Inadvertent Archaeology & Historic Resources Discovery Plan. Amendments to the environmental policy chapter will reduce redundancies in the permitting process. Amendments to the environmental policy chapter will assist in encouraging multi-family and infill development, which is a framework goal contained in the Comprehensive Plan. Providing for the deferral of impact fees will comply with recent changes in state law intended to encourage residential construction by small contractors. The adoption of impact fee provisions will provide for increased oversight and accountability in the management of impact fee funds. DEPUTY MAYOR PRATT MOVED TO ADOPT ORDINANCE NO. 1507, PERTAINING TO SEPA Page 4 of 9
38 FLEXIBLE THRESHOLD AMENDMENTS AND IMPACT FEES. COUNCILMEMBER GREENSTEIN SECONDED. MOTION CARRIED. ORDINANCES: Ordinance No amends the 2017 Budget by adopting the 2016 Budget Encumbrance Carryovers. Despite all the extensive budget planning and efforts to complete projects and purchases prior to the year-end closing, staff is not always able to complete all of the projects and purchases. The projects and purchases are expected to be completed during 2017, so it becomes necessary to carryover previously approved budget appropriations into the next year. These proposed amendments are limited to carryover encumbrances and capital projects. COUNCILMEMBER GREENSTEIN MOVED TO ADOPT ORDINANCE NO. 1508, AMENDING THE 2017 BUDGET BY ADOPTING THE 2016 BUDGET ENCUMBRANCE CARRYOVERS. COUNCILMEMBER STEADMAN SECONDED. MOTION CARRIED. Ordinance No approves the North Thurston Public Schools Marvin Road Annexation - Project No The City has received a petition for annexation filed by North Thurston Public Schools using the 60 percent petition method (RCW 35A ). The petition has been signed by Debra Clemens, Superintendent of the District. It has been verified by the Thurston County Assessor s office that the signatures represent not less than 60 percent of the assessed valuation for general taxation of the property for which the annexation has been petitioned (RCW 35A ). The annexation has been sent to the Thurston County Boundary Review Board (BRB) for their review. The BRB has declined to invoke jurisdiction so the application returns to the Council for final consideration in ordinance form. Page 5 of 9
39 The area proposed for annexation is located in the Hawks Prairie Planning Area and within the Lacey Urban Growth Area west of Marvin Road NE, east of Legacy Drive NE, north of 41 st Avenue NE, and south of 44 th Avenue NE. The area includes acres in two separate tax parcels. Although, the petition has been signed by North Thurston Public Schools (NTPS), the city-owned parcel to the southeast would also be a part of the application for the purposes of creating logical boundaries and elimination of unincorporated islands. COUNCILMEMBER STEADMAN MOVED TO ADOPT ORDINANCE NO TO APPROVE THE NORTH THURSTON PUBLIC SCHOOLS MARVIN ROAD ANNEXATION. COUNCILMEMBER GREENSTEIN SECONDED. MOTION CARRIED. MAYOR S REPORT: MAYOR RYDER MOVED TO APPOINT COUNCILMEMBER HEARN TO THE LODGING TAX ADVISORY COMMITTEE. COUNCILMEMBER GREENSTEIN SECONDED. MOTION CARRIED. Mayor Ryder announced that with the resignation of Councilmember Gadman, there are vacancies on the JASCOM and Intercity Transit Boards on which he served. Until a new Councilmember is appointed to the vacant Council position, Councilmember Clarkson will attend Intercity Transit meetings, and Councilmember Hearn will represent the city at JASCOM meetings. Mayor Ryder recognized Planning Commission members Paul Enns and Mike Goff in attendance. CITY MANAGER S REPORT: Puna Lovell, PW Utility Engineer, presented Council with a request to award Lacey Contract Number PW to low bidder Pacific Civil Infrastructure, Inc. in the amount of $3,435,398.82, for the Steilacoom Road Lift Station & Water Improvements, and Water Transmission Main on Hoh Street. Page 6 of 9
40 COUNCILMEMBER STEADMAN MOVED TO AWARD LACEY CONTRACT NUMBER PW TO LOW BIDDER PACIFIC CIVIL INFRASTRUCTURE, INC. IN THE AMOUNT OF $3,435,398.82, FOR STEILACOOM ROAD LIFT STATION & WATER IMPROVEMENTS. MAYOR RYDER SECONDED. MOTION CARRIED. Rick Walk, Director of Community & Economic Development, presented Council with a request to authorize the City Manager to sign an Interlocal Agreement between the City of Lacey and the North Thurston Public Schools for the collection of impact fees. The adoption of the impact fee chapter, LMC 14.25, requires the establishment of an interlocal agreement between the city and the school district for the collection of school impact fees. School districts are responsible for expending the impact fees for school facilities that are identified in a capital facilities plan but are not authorized to collect the fees. As a result, school impact fees require cooperation between the district and the jurisdiction administering the impact fee program. This cooperation takes the form of an interlocal agreement that specifically identifies each party s role. The requirements for an interlocal agreement and establishment of a school impact fee account are found in LMC Section of the Impact Fee chapter as required by state law. COUNCILMEMBER GREENSTEIN MOVED TO AUTHORIZE THE CITY MANAGER TO ENTER INTO AN INTERLOCAL AGREEMENT WITH NORTH THURSTON PUBLIC SCHOOLS FOR THE COLLECTION OF SCHOOL IMPACT FEES. DEPUTY MAYOR PRATT SECONDED. MOTION CARRIED. COMMITTEE MINUTES: Finance Committee Deputy Mayor Pratt reported the Committee met on March 1, 2017, to discuss the 2016 Budget Encumbrance Carryovers, the ULID 24 debt process, and anticipated budget amendments for Page 7 of 9
41 Community Relations & Public Affairs Committee Councilmember Clarkson reported the Committee met on March 6, 2017, to receive an update on the Mayor s Gala. Transportation Committee Mayor Ryder reported the Committee met on March 8, 2017, to discuss an alternative bike route on Judd Street. BOARDS & COMMISSIONS: CAC Councilmember Steadman reported that the second annual Monarch Children s Justice & Advocacy Center Second Annual Fundraising Breakfast will be held on April 25 at 7:30 a.m. at the St. Martin s Worthington Conference Center. Intercity Transit Councilmember Clarkson reported the Board received information on the Youth Pass Program, public transit express routes, van pooling in the military corridor and the level of service impacted by funding. Thurston Thrives Deputy Mayor Pratt reported the group received a presentation about the Law Enforcement Conversion program that provides triage services at the time of arrest. VCB Councilmember Greenstein reported that funding from the Tourism Promotion Area has increased 15% over budget. ADJOURN: Mayor Ryder adjourned the meeting to a worksession at 8:19 p.m. to discuss the Capital Golf Club Estates and Chamber Estates public meeting regarding annexation. WORKSESSION: Page 8 of 9
42 ANNEXATION CHAMBER ESTATES & CAPITAL GOLF CLUB ESTATES Rick Walk, Community & Economic Development Director, briefed the Council on a recent public meeting with residents of Chamber Estates & Capital Golf Club Estates to discuss annexation. Approximately 130 people attended the meeting to ask questions about septic to sewer conversion, annexation, tax increases, and public safety. Residents were reassured they would not be required to connect to city sewer unless their septic fails, and police response times would improve. Council agreed to hold a second meeting to provide an opportunity for more discussion about residents concerns about disadvantages related to annexation and negative impacts to their neighborhood. Staff will schedule another meeting with residents of Chamber Estates & Capital Golf Club Estates to address concerns they may have about annexation to the city. COUNCIL RETREAT Scott Spence, City Manager, reported that April 28, 2017, had been tentatively scheduled for the annual Council retreat. However, due to conflicting schedules and emerging events, Scott asked for Council input on whether to reschedule or not. Following discussion, Council agreed to reschedule the retreat to early June. Staff will contact Council to coordinate selecting another date. COUNCIL VACANCY Scott Spence, City Manager, reported that the Council Chambers is not available April 17 to hold candidate interviews for the Council vacancy. After further discussion about venues and dates, there was no consensus on either. Council will adjourn to worksession following the April 13 Council meeting to continue their discussion of the process. Mayor Ryder adjourned the meeting at 9:17 p.m. MAYOR: ATTESTED BY CITY CLERK: DATE APPROVED: Page 9 of 9
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