Meeting Notes - January 11, 2009

Welcome:  Don Winters and Mark Eliasen Welcome and thank you for coming.  

• State of Kirkland: Mayor Jim Lauinger: Pleasure to address all of the neighborhoods.  Gave this message to the Kirkland Association of Neighborhoods and also the Chamber of Commerce.  The data in this speech was based on the Association of Washington Cities State of the Cities Report.  Kirkland contributed to the report, which can be downloaded from the AWC web site.  One of the primary messages is that with the changes in the financial markets is that you cannot look to the past you have to look far ahead to the future.  See two strong interconnected struggles.  Operating revenues cannot keep up with expectations, state and federal regulations and priorities.  Second issue is that infrastructure is aging and is not keeping pace with the growth.  Even providing basic services such as fire and police can be a challenge for some communities.  Kirkland is in good shape as far as this goes.  Kirkland does not have to worry about providing good safety services.  Even though they are 60-70% of our budget.  Heard in the retreat last year that the city of Vallejo, Ca was going to have to file for bankruptcy due in large part to the costs of providing these services.
  • Second most important service is the streets and how Kirkland provides transportation.  Kirkland does try to manage to provide routine maintenance to ensure that the streets last longer and do not need to be replaced.  Upkeep is cheaper in the long run then replacement.  Kirkland tries to keep streets at about 65% of perfect which costs about $2 million annually.  Would like to keep them at 70-75% but that would cost about $6 million annually. This is an issue they are facing and want to try to come up with the extra money $45 million over the next several years on transportation issues.  The non-motorized, non-funded transportation projects will cost about $2 million.
  • Kirkland used to have wooden pipes.  They have been replaced, but need to be upgraded and maintained. $65 million in backlog of projects to upgrade water and sewer projects.  There is also a $20 million project in the Market area to upgrade sewer services that is unfunded.
  • Parks and Recreation has $10 million in the capital improvement budget – which basically keeps Kirkland’s park at the current level of services.
  • Relying on sales tax has hurt Kirkland when sales are down like they are now.
  • Initiatives and federal and state issues have cut their revenue sharing and funding to the cities.  Also a sentiment of anti-government and mistrust.  This means that voters are less likely to vote for increases.
  • Major increase in annexations.  This means that cities have more people to provide services for.  This puts pressure on the basic infrastructure needs.
  • Best served in working with citizens and businesses to set priorities to try to use the revenue available to provide the services most needed in the community.  Need to develop sustainable budget.  Needs to set revenue and expense expectations that will last for the next several years.  Kirkland is not there yet, but is trying.
  • Must work on economic development programs.  Have a good program in place.  Have a lot to sell, good location, services, buildings.  Hope to attract high tech building.  Cannot win on the sales tax issue as we do not have the locations for high sales tax issues.  Downtown has increase sales tax in the past year about 6% - the city of Kirkland as a whole is down 9%.  One reason is that people with high paying jobs will walk downtown and go to the bars and restaurants. Kirkland is expensive to live in, but if we attract high paying jobs then they can afford to live here and raise a family.
  • Need to work on sustainability – manage utility rates in order to develop reserves to ensure that when major projects come we do not need to rely on the general fund.  Have developed the reserves and are relying on those reserves to help get us through the next budget cycle.  
  • Questions:  Where is ParkPlace: Legal issue has been filed.  Land issue – stop development on technical issues.  Effects two other properties as well.  City is watching to see what will happen in the courts.  Timeframe is probably 60 – 90 days before it starts moving through the courts.  If it had started on time the first thing to be re-developed would be the QFC and will be a three to four year build out.  Still has to go through the DRB process.  
  • Sewers and waters and streets – if there was an earthquake would we get federal funds?  It depends.  Federal government is usually good, but it depends on how much damage there is and if they federal government has money.  Our money usually goes for maintenance and providing new services.
  • Has the new parking garage been costed out?  Parking is always on the council’s mind.  Jack Werry stated that the PAB is leaning towards partnering with builders who are putting up building to see if we can get some spots from them and partner with the people re-developing the antique mall and the McLeod project to use those sports as paid parking in the evening.  Still looking for new parking opportunities, but looking more to partner then to build new as the city.  About $40,000 per space to build new above ground parking.  Do not have that kind of money and it is not that high of a priority.  What is the impact of Google going to be for the city?  No real numbers.  Pay well, but they are currently retrenching.  The key for high paying jobs (like Google and the hospital) is that they are a good multiplier.  People with these paychecks put money back into the community if there are good stores for them to shop in.  Will increase the business head tax and as long as employment stays up it is a good source of revenue. 
  • City invests in bringing new services, but need constant steady revenue to do this and with sales tax you do not have this.  So it is hard to plan effectively.
  • What is the problem with Totem Lake?  Have a good relationship with the developer – have a good housing component in the works.  Main issue is that big box retailers are not ready to go into there as it is just not a great site as there are already strong sites elsewhere and the economy is not such where they are expanding.  
  • Historical and small lots created by the zoning committee.  Moment afoot to put a smaller home on a larger lot – would require the city to allow driveways into – and the builders have been blocked by zoning.  The builders are being told no because of the driveways – where can he go to get some relief.  Bob Sternoff recommends writing to the council and including a drawing and they can take a look at this issue.   
  • Zoning code changes for central business district – what does this entail? Determined that the rules need to be re-written to be clearer so that rulings will not be appealed all the time.  Mainly for Central Business District 1.
  • Nice to try to increase people and businesses coming in, but if there is no new growth what options are available for the city?  Answer is utility tax.  One of the few tools in the toolbox.  Business head tax.  Cannot really go back there soon as currently still competitive, but cannot increase too much more.  Some cities are looking at an income tax, but then you need to be willing to cut some other taxes.  However, across the county we need to get serious about upgrading public services.  Need to have good services – Google can go anywhere and if services are not there from the city they people will not locate here.
  • Why does Kirkland not consider a head tax on people living here as well?  Cannot expect the businesses to be the only ones to pay.  If Kirkland wants better than average services then the residents should be willing to pay for it.  Answer is it could be voted on by the people.  However if the budget is to be balanced in the future it will require the utility tax be passed.  Electric, cable and phone would be covered.  Would provide about $2 million for the 2010 budget.
  • Would not write off sales tax completely.  Tukwila has a lot of money because of the mall.  Kirkland has too many closed businesses and if there was more business re-development then sales tax would go up.  Response is that will continue to look to increase sales tax, but it is not a stable source of income so not something you want to rely on.
  • Commuter rail – what is the status of that project?  There were always issues with the project – lots of rail crossings, really room for rails and trails, cost became prohibitive – cost came back over $1 billion.  Council is behind rail as a concept, but not probably that one.  Want something on rail North-South, but nothing planned.
  • Annexation – current thinking.  Kirkland is not sure they can afford to annex as the budget is already hurting.  So now that the budget is done they are re-working the numbers in the future – revenues that are expected and want to see if they can comfortably do it.  There is some State money that would be involved, but do not want to rely on this.  Qualification date is Jan, 2010.  Will start looking at this again in the March meeting.  Much of the costs associated with annexation was with building facilities.  Are looking at ways to increase the facilities without having to completely build new buildings.  Would get some benefits revenue wise such as they casino and the auto dealer that is moving there. Bothell really wants the area.  Kirkland has first crack.   Every time Kirkland has annexed they have almost doubled.  Last one was Rose Hill.  It has not hurt the city.  Still working on getting them full sewer and sidewalks, but coming along.
  • Also wanted to thank Bob Sternoff and Joan McBride and the Mayor for coming.  One of the reasons Kirkland is such a nice city is that people get involved.
  • Downtown re-development is waiting on banks providing the financing.  Need to find tenants first.  Banks will not lend until you have a tenant.

• Google’s New Kirkland Campus:  The Google representative scheduled could not make the meeting, so Mark Eliasen gave a brief update – SRM built the Google building on speculation.  The complex is 195,000 feet in three buildings.  Google is currently in the Filenet building on 3rd St., and the Washington Park building on Lake Washington Boulevard.  Google took possession of the new 6th St. S. complex about 9 months ago and have been building out.  Originally planned to move into the first building in March and then the other two later.  Now it is likely that they will lease out 78,000 feet.  Will move out of their current two buildings.  The buildings combine blended open space and closed area.  All conference rooms have Rock band game sets and that sort of thing as it increases collaboration.  Provide lunches and massage services.  No idea what the headcount will be.  Kirkland office is the one that came up with Google maps.
• Update on Pace site – 7th Ave S.  Don Winters: 5 acre site across the RR tracks from new Google site.  Owned by ULTRA Corp.  Pace chemical closed in 1996 or so.  Was torn down and is now a vacant lot.  One proposal was to build a high tech office site.  Moss Bay Neighborhood Association got  started over traffic concerns from this site.  It never got built.  CamWest Development has an option to buy the property, but it has been tied up in environmental cleanup which has been underway for several years. Don reported that Moss Bay asked Maura O'Brien, the site manager for the Department of Ecology (via email) several questions concerning the "new" cleanup agreement:

     1. Cleanup efforts have been underway at the Pace site for several years, including the removal of a large amount of soil. What is the difference between the efforts so far and the process which is starting now?
Ecology reply: Yes this is correct. There have been four phases of investigation and soil removal in addition to soil and groundwater sampling. These phases have been successful in removing significant amounts of contamination. However, some contamination remains on site. Sound Environmental Strategies (SES), the current consultants at the Pace site propose to complete the investigation, prepare a Cleanup Action Plan, and to conduct two pilot tests. The two pilot tests are to evaluate two new methods to cleanup the specific chemicals of concern (contaminants) at this site. These two methods are proven successful at other sites. The pilot tests are to evaluate these two methods here at this site with this soil and these site conditions. I am optimistic that these two methods will be effective in removing the remaining contamination. If not, then Ecology will require other cleanup methods.

2. We have been told that the groundwater is contaminated with vinyl chloride. What other contaminants have been found on the site and at what level? 
Ecology reply: I do not have the site file with me. My memory is that the chemicals of concern (contaminants) are primarily vinyl chloride and dichloroethenes. There may be other chemicals associated with vinyl chloride (VC) such as tetrachloroethene or perchloroethene (PCE), trichloroethene (TCE) and dichloroethenes (DCE) in addition to petroleum substances such as diesel and volatile organics such as benzene. During the earlier investigations there has been a lot of chemical laboratory analyses and much of the contamination found earlier has been excavated and removed from the site. One of the tasks of the new proposed work is to review all the past work and to make sure there are not data gaps and chemicals of concern at the site. If data gaps are identified, then Ecology will require more investigation and laboratory analysis to identify the chemicals of conern and their extent and then to evaluate cleanup tasks. So the proposed work includes completing the investigation for data gaps and other chemicals of concern at this site.

3. By how much does the contamination exceed the permitted levels? Is it only slightly above the threshold or is it a major issue?
Ecology reply: Compared to other sites, I would estimate that this site is above cleanup level for vinyl chloride greater than slightly and less than major or significant. Yes it will require cleanup. A site hazard assessment is currently being completed and this will rank this site relative to other known hazardous sites within Washington state. When this work is completed I will forward it to you. 

4. What is the name of the company that Pace has hired to clean up the site? What cleanup process are they proposing? Please be specific. Will they be removing more soil? 
Ecology reply: Currently, Sound Environmental Strategies (SES), a Seattle consulting firm is working at the former Pace site in addition to Hart Crowser, another Seattle consulting firm. SES has proposed to conduct two pilot tests. One involving zero valent iron injection to address the vinyl chloride in situ, meaning within the soil and groundwater in the substrate below the surface at the property located in the northwest area of the property. The second is a biodegradation process using microbes to assist in breaking down vinyl chloride into neutral chemical subparts at the north-central part of the site. If you like I will be happy to send you a copy of the proposed pilot test work plan. The Pilot Test Work Plan is currently available for review at Ecology's Bellevue office and you need to call for an appointment to Sally Alexander at 425-649-7239. Note, Ecology will observe the pilot testing and results, then we will have information if one or both of these methods are successful at this site. Then we will be able to prepare a cleanup action plan. 

In regard of removing more soil, we need to complete these pilot tests and to complete the site investigation first, in order to evaluate what are the best methods for the remainder cleanup that needs to be completed at this site. The question if more soil needs to be excavated, my answer at this time is I do not think so and I need to wait until the site investigation and pilot tests are completed. 

5. There have been several environmental firms working on the site over the years. They have drilled monitoring wells and removed lots of soil. Have they made progress or are we about where we started? 
Ecology reply: Significant progress has been achieved at this site, however, there remains pockets of contamination at the site. The proposed work outlined in the former Pace National Site fact sheet and the proposed Agreed Order describes the work to be conducted to address the remaining contamination at this site. 

6. Has the company estimated how long the process will take? 
Ecology reply: The pilot testing results will assist us to make an estimate for the proposed cleanup. Based on other sites, I would make a guess-estimate of one to two years plus compliance monitoring to confirm that the cleanup is completed.

7. How will the State determine when the site is clean enough to require no further action?
Ecology reply: Washington state uses the Model Toxics Control Act (MTCA), our state cleanup process to set cleanup levels for each media (soil, groundwater, air, surface water or wetlands what ever applies to a site) and to set points of compliance to determine that cleanup is completed for each and all media and that the cleanup process has achieved the requirements. The MTCA process includes all state and federal regulations that apply to this site. The last step of the MTCA process is compliance monitoring and this is to confirm that cleanup levels are achieved and sustained. For example for ground water, cleanup levels need to be achieved for four consecutive quarters, then Ecology confirms the site groundwater is cleaned up.

• Neighborhood Projects: 
  • Downtown library is closing January 24th and limited services are available at ParkPlace books on February 2nd.  
  • Bank of America is reportedly scheduled to break ground in February. 
  • Kirkland Ave and 3rd the light will be in by March 31st.
  • Planning commission is dealing with Shoreline regulations – if you are concerned please contact the planning commission.  Need all the insight they can get.  Meeting on the 22nd at City hall if you are interested. 
  • Northlake church has opened their chapel.  Will be a pre-school and training center for handicapped people.  Will also lease out space to people as needed.