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2020-08-27 Hearing Examiner Decision2 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CITY OF EDMONDS 121 51h Avenue North, Edmonds WA 98020 Phone: 425.771.0220 • Fax: 425.771.0221 • Web: www.edmondswa.gov DEVELOPMENT SERVICES DEPARTMENT • PLANNING DIVISION BEFORE THE HEARING EXAMINER FOR THE CITY OF EDMONDS Phil Olbrechts, Hearing Examiner RE: Diamond Parking Services LLC FINDINGS OF FACT, CONCLUSIONS OF LAW AND FINAL DECISION Conditional Use (PLN2020-00037) OVERVIEW Diamond Parking Services LLC ("Applicant") has requested approval of a conditional use permit application to establish commercial parking at three existing parking areas at 306 Main Street, the Bank of America site. The application is approved subject to conditions. The Applicant has unwittingly found itself involved in an on -going hearing notice issue raised by a third party that has led to unfortunate delays due to the need to re- open the hearing twice to address potential and actual defects in public hearing notice. The bulk of this decision addresses the notice issues because the third party has indicated he will appeal this decision to the City Council on those issues. The need to re -open a hearing is very rare and the examiner has only had to re -open a hearing less than five times in the 2,000 hearings held by him and never twice. The circumstances leading to these re -opened hearings were highly unique, resulting from a combination of COVID, some ambiguous notice requirements and a litigant actively trying to force procedural error from the City. Ultimately, it is highly debatable whether staff made any error in hearing notice, but if such an error did occur it was limited to not posting hearing notice in City Hall and the Library while those two buildings were closed during COVID. The hearing was re -opened with posting of all required buildings to correct this potential deficiency. One obvious point to maintain proper perspective is that public notice procedures do not involve the precision of designing O rings for space shuttles. Short of staff or Conditional Use P. 1 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the Applicant phoning every resident of Edmonds and repeatedly phoning them until each has been personally contacted, there is no practicable means of assuring that every potential interested person is made aware of a pending land use hearing. Instead, adopted hearing procedures and the court opinions construing them require a reasonable effort to apprise the potentially interested public of land use projects that may affect them. In the implementation of these objectives, there are often multiple means of providing notice within the parameters set by local code. Each method may reach a slightly different group of people, but in the end if the procedures have been reasonably interpreted and applied, the objectives of public notice have been achieved. Cast in this light, the notice process for this proceeding fully met the objectives and fully complied with the notice requirements adopted by the City Council. There were two notice issues raised by the litigant, the first alleging defects in the mailed notice and the second alleging defects in posted notice. Each is addressed separately below. Mailed Notice During the August 27, 2020 hearing Finis Tupper asserted that the Applicant failed to comply with the City's mailed notice requirements for the public hearing. After extensive review of the City's mailed notice procedures and those of other jurisdictions, the Applicant's mailed notice is found to be fully code compliant. ECDC 20.03.003C 1 c requires hearing notice to be mailed to "[a]ll owners of real property, as shown by the records of the County assessor within 300 feet of the boundaries of the property(ies)..." It is important to recognize that ECDC 20.03.003C 1 doesn't require mailed notice to be mailed to the addresses listed in Assessor records, but rather to the owners listed in those records. ECDC 20.03.003C doesn't specify how the addresses for the specified owners are supposed to be determined. As noted in the findings of fact of this decision, there are multiple ways to put together address lists for the owners identified in Assessor records. It is concluded in this Decision that there are multiple reasonable methods available to permit applicants to derive the addresses for the 300-foot mailing list and that the method employed for this project was one of those acceptable methods. There is no case law directly on point as to what type of methodology is appropriate for determining the addresses of property owners listed in Assessor records. However, case law that addresses the adequacy of notice for permit review in general establishes that the methodology must simply be reasonably calculated to apprise the public of a contemplated permitting action. Perhaps the most helpful zoning case on zoning notice is Barrie v. Kitsap County, 84 Wn.2d 579 (1974), which addressed a public notice that mislead the public about a rezone application. The decision to approve the rezone was overturned because the notice was misleading. Barrie did not address the adequacy of mailed notice procedures. However, part of the Barrie ruling is pertinent to resolution of the notice issue in this case, quoted as follows: One of the basic touchstones of due process in any proceeding is notice reasonably calculated under all the circumstances to apprise affected Conditional Use p. 2 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 parties of the pending action and afford them an opportunity to present their objections. 84 Wn.2d at 586. The key phrase in the quote above for purposes of this proceeding is "reasonably calculated." Due process case law is ultimately generally based upon a balancing of public verses private interest. See, e.g. Post v. City of Tacoma, 167 Wn.2d 300, 313 (2009). Consequently, in assessing the adequacy of the methodology employed to determine the addresses of property owners, factors relevant to the analysis include the accuracy of the methodology and the resources that would be necessary to employ more accurate methodologies. Given that mailed notice requirements have been around for decades for most of Washington's cities and counties, the practices developed in other communities are pertinent to assessing what types of notice practices are available and feasible. The Applicant in this case did what the majority of applicants have historically done in Edmonds for mailed notice — it acquired a list of mailing addresses from the Snohomish County Assessor's Office that lists the mailing addresses for all property owners owning property within 300 feet of the Applicant's project site. Mr. Tupper took issue with use of the Assessor records, correctly pointing out that the mailing lists generated by the Assessor's Office don't list the physical addresses of the properties owned by the property owners, which in the Assessor records are called "owner" addresses. Rather, the list generated by the Assessor's Office contains the mailing addresses of the property owners. These mailing addresses, called "taxpayer" addresses in Assessor records, are the addresses submitted by the property owners to the Assessor's Office, to serve as the address to mail property tax statements. When a property owner resides at the property she owns, the owner and taxpayer addresses are often the same. However, when the owner doesn't live at the property in question, such as situations where the owner leases the property, the taxpayer address will often be different from the owner's address. At the hearing Mr. Tupper challenged use of the taxpayer addresses for mailed notice, claiming the addresses should have been based upon owner addresses. Mr. Tupper pointed out that a woman who acquired her mail by owner address did not receive the hearing notice mailed to the taxpayer address. Mr. Tupper did not mention in his challenge that this procedure conflicted with how City staff had sent mailed notice for its own conditional use permit application, the Civic Center Playfield project, which was approved by a Decision Upon Reconsideration dated February 26, 2020. For that application, the City used its own GIS data to mail notice to all owner addresses within 300 feet of the project site, instead of taxpayer addresses. Mr. Tupper's residence was located within 300 feet of the project site, but he received his mail by a post -office box listed in Assessor records as his taxpayer address, so he did not receive the mail sent to his owner address. The examiner found the discrepancy in the mailing procedure between this project and the Civic Center Playfield project after the close of the August 27, 2020 hearing. As a result, the hearing was re -opened to give the City an opportunity to explain the difference in mailed notice procedures for the Civic Center Playfield project and this project. Staff was also asked to answer several other Conditional Use p. 3 Findings, Conclusions and Decision I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 questions that would help clarify how mailing address lists are put together for Edmonds and other communities, so that the accuracy and governmental burden for various types of notice procedures could be assessed. Mr. Tupper's experience and that of the woman he mentioned for purposes of this hearing highlight the fact that no specific method of providing mailed notice will reach every single person who owns property within 300 feet. Mail sent to Assessor "owner addresses" will not reach people such as Mr. Tupper and mail sent to "taxpayer addresses" will not reach people such as the woman mentioned by Mr. Tupper. There is nothing in the record to reasonably suggest that the use of taxpayer addresses would be materially more accurate than owner addresses, or vice versa. Given that taxpayer addresses are the addresses that property owners themselves have requested for mailing, it superficially appears that notice mailed to taxpayer addresses are more likely to reach a property owner, but according to Mr. Tupper, that didn't occur for the woman he referenced during the appeal hearing. There is nothing in the record to suggest that there's any more feasible means of ensuring that mailed notice actually makes it to property owners. City staff were asked by the Examiner in post -hearing briefing to identify mailed notice methodologies employed in other jurisdictions and no more accurate methods were identified. The fact that in practical terms it's not feasible to ensure mailed notice with 100% accuracy to property owners within 300 feet of a project is an extension of the concept that the 300-foot requirement doesn't in itself guaranty that all potentially affected persons will receive mailed. Mr. Tupper missed the opportunity to comment on the Civic Playfield because of the fortuitous circumstance that he used a post office address to receive his mail instead of a home mailbox. He could just as easily have not received the notice because his home was located 301 feet from the project site instead of 200 feet or whatever the actual distance from his home to the fields. The 300-foot rule and the method employed to provide notice within that 300 feet are both methodologies designed to undertake a reasonable effort to provide notice to potentially affected property owners. No reviewing court could seriously require a jurisdiction to provide notice with any more accuracy. In their responses to the Examiner's inquiries about mailed notice methodology, City staff stated they were unaware that the County was using taxpayer addresses instead of owner addresses. For this reason, staff have determined that they will generate owner addresses using City resources instead of having the Assessor's Office generate its lists. As previously noted, ECDC 20.03.003C1 doesn't specify how addresses are to be derived, it only specifies who the owners are to be (i.e. those listed in Assessor records). The evidence in the record establishes that both owner and taxpayer addresses are reasonable means of deriving addresses for the owners listed in Assessor Records. Neither list is found to be more accurate than the other and there is no evidence of any other method of assigning addresses that would generate more accurate addresses with reasonable effort. The Civic Center examiner decision Conditional Use p. 4 Findings, Conclusions and Decision 2 9 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 determined that owner addresses are a reasonably accurate means of providing mailed notice. This Decision adds that taxpayer addresses are also an acceptable means'. Posted Notice Mr. Tupper's second notice issue was with posted notice, specifically ECC 1.03.020, which governs the posting of notice for all City hearings. During the initial hearing, staff made the compelling argument that ECC 1.03.020 doesn't apply to the posting of land use hearings, because there are more detailed posting requirements in the City's land use regulations. The City's position was also consistent with the legislative history of ECC 1.03.020, which was likely enacted in order to provide specific notice requirements for meetings subject to the Open Public Meetings Act. Examiner hearings are not subject to the Open Public Meetings Act. However, upon writing the decision after re -opening the hearing to gather information on the mailed notice issue, the examiner found that the language to ECC 1.03.020 was too specific to comport with its legislative intent and the staff s interpretation. During the initial hearing, in response to questions inquiring about whether staff had posted at the Edmonds post office as required by ECC 1.03.020, staff responded that they didn't believe that ECC 1.03.020 applied to land use hearings. From this testimony it didn't appear that staff had complied with ECC 1.03.020 and the hearing was re -opened to correct the potential defect in posting notice. When ECC 1.03.020 was adopted in 1984, former RCW 43.32.010 (now recodified within the Open Public Meetings Act as RCW 42.30.060) required cities and counties to adopt their own notice procedures for public meetings. ECDC 1.03.020 was likely adopted to meet this requirement. As staff noted during initial hearing, the notice requirements for land use hearings are addressed in detail in Chapter 20.03 ECDC. The notice requirements for land use hearings are in fact far more comprehensive than those for public hearings and have their own posting requirements. It would normally have been reasonable to conclude that ECC 1.03.020 did not apply because it was adopted for another purpose and did not materially add to the notice already required by Chapter 20.03 ECDC. However, staffs position cannot be reconciled with the language in ECDC 1.03.020 that requires that the ECDC 1.03.020 notice must be posted for "any provision" of the ECDC that requires notice. The City Council's inclusion of this verbiage leaves no room to exempt other notice standards that were adopted for a different purpose — "any" other provision is subject to ECDC 1.03.020. ' Although more than one means of deriving addresses may satisfy the City's mailing notice requirements, staff should be consistent in the method they employ for their own applications to avoid any appearance that certain types of applications are treated differently for improper purposes, such as ensuring that some individuals don't receive notice. If staff choose to consistently use owner addresses because it is more economical and/or timely to do so using its own GIS data, a court would likely find that method to meet notice standards even though private applicants are allowed to submit Assessor generated taxpayer addresses. Conditional Use p. 5 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It is recognized that even with the "any" qualifier there is still potential room for some disagreement, but ultimately the risk is very high that a reviewing judge will find that the City has violated ECC 1.03.020 if the failure to comply with that section is not remedied. If not found to be harmless error, such a violation could result in a remand several months from now requiring the City to redo the entire hearing, creating substantial delay to the Applicant. In order to protect the Applicant from this type of delay and to provide the notice to which the public is entitled under ECDC 1.03.020, staff was directed to post notice of a re -opened hearing to provide for additional public comment. The City requested reconsideration of the Examiner's order to correct the posting notice, identifying for the first time that it did not post in the post office because the post office had been closed. The examiner asked for additional information on the number of people working in City Hall and the library during the pandemic and whether the City was authorizing the public to access City Hall by appointment. City staff then withdrew their request for reconsideration. SUMMARY OF TESTIMONY Note: This hearing summary is provided as a courtesy to those who would benefit from a general overview of the public testimony of the hearing referenced above. The summary is not required or necessary to the recommendation issued by the Hearing Examiner. No assurances are made as to completeness or accuracy. Nothing in this summary should be construed as a finding or legal conclusion made by the Examiner or an indication of what the Examiner found significant. Staff Presentation Mike Clugston, City of Edmonds City Planning Division, presented a summary of the proposal. Mr. Clugston noted that the parking areas are already developed and no improvements or alterations are proposed. In response to an Examiner inquiry as to why the change in use of the parking areas from private to commercial parking lots didn't trigger currently applicable landscaping and access standards, Mr. Clugston answered that the code doesn't require conformance to current standards because of the proposed change in use. Mr. Clugston noted that the parking areas were created in the 50s and 60s and didn't precisely conform to current standards, but staff found the existing landscaping to be sufficient. Doina Copaceanu, Applicant, stated she had no comment. Finis Tupper, 711 Daily Street, inquired of staff whether the hearing examiner is subject to the Open Public Meetings Act. The Examiner responded that the hearing is not, as the Act only applies to "governing bodies," which are defined as multi -member decision making bodies. He noted that the Municipal Research Services Center has opined that examiners are not "governing bodies" because they are single decision Conditional Use p. 6 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 makers. Mr. Tupper wanted to know what the staff policy was on posting the staff report. Mr. Clugston stated the report is typically posted a week beforehand. Mr. Clugston stated that for this project the staff report was likely posted the preceding Thursday or Friday. Mr. Tupper stated that it wasn't posted the preceding Thursday but may have been posted the preceding Friday. Mr. Tupper asked where the staff report and agenda packet was posted. Mr. Clugston stated that typically the agenda is posted at the public safety building and the library. In this case those buildings were closed so the agenda wasn't posted there. The agenda was posted on-line. The site itself was also posted. Mr. Tupper noted that a new ordinance that had gone into effect the preceding Sunday required posting at the post office and inquired whether that had been done. Mr. Clugston responded that posting for land use actions is governed by Chapter 20.03 ECDC. Mr. Tupper asked if the 300-foot mailing notice was created by the applicant and Mr. Clugston responded it was. Mr. Clugston also confirmed that the City doesn't verify the accuracy of the list as there's an affidavit signed and the list is provided by the Assessor's Office. Mr. Tupper inquired whether the addresses were owner or taxpayer for the mailed notice and Mr. Clugston responded owner. Mr. Tupper noted that Assessor addresses are taxpayer addresses, not owner addresses. Mr. Tupper noted that the Janet Bakker address used for mailing was the taxpayer address and that "she did not receive the mail on this." He has an email from an Assessor employee stating they use the taxpayer address. Sharalyn Ramm, 110 3rd Ave N., inquired whether the City had looked into the tax consequences of the proposal and how it would affect the economy of the City. She believes that having to pay for parking will turn potential retail users away from the downtown area. She suggested that one alternative may be for the City to lease the parking area. In rebuttal, Mr. Clugston noted that the notice requirements of Title 20 were covered for the project. Mr. Clugston noted that parking needs are being assessed by the City and that a parking study may be coming up in a year or so, but the proposal involves private property. In response to examiner questions, Mr. Clugston confirmed that City Code requires use of Assessor addresses and that's what the Applicant used for mailed notice. Mr. Clugston noted that the Title 1 posting requirements are for City Council postings. The Examiner requested a copy of the new Title 1 ordinance from Mr. Clugston and said he would take judicial notice of it. Grant Merit, nearby business tenant, noted he's very familiar with the parking lots and said that everyone knows there's a serious parking problem in downtown Edmonds. He works in downtown every day and is always fighting for three hour parking and parking is being pushed out into residential areas. The proposal may not make a difference in all of this by itself, but it's setting a precedent. Hopefully, downtown Edmonds will continue to grow, but that will make parking worse and push it further into residential areas. Sharalyn Ramm recognized that parking lost to outdoor restaurant seating will be available again on October 11, but there's also the issue of the City allowing a nine unit Conditional Use p. 7 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 apartment building on Third and Bell that has no parking provided for the tenants. She knows one of the tenants has two cars. This is happening more frequently and it's putting more pressure on the businesses. In response to Examiner questions, Mr. Clugston noted that the commercial use of the Bank of America parking was not required parking for that use. The bank could lease out their parking spaces all the time if they wanted to. When the nine unit apartment building was constructed parking wasn't required. Since then the City Council has adopted a new standard that requires one parking stall per unit. Mr. Clugston said it's possible that some of the parking for the proposed parking area may have been required in the 60s when the surrounding buildings were constructed, but the code currently doesn't require parking for commercial buildings. All three lots are owned by the same owner. Two of the lots are used by the bank. One of the lots is used for three hour parking. At the second hearing on November 11, 2020, Kelly Brewe stated she was concerned about vehicles parking over the curb and encroaching onto her adjoining property, which had an alley that was just wide enough to accommodate single -file parking. Mr. Clugston responded that any re -striping would only be authorized on the Applicant's property. EXHIBITS The following exhibits were admitted into the record during the August 27, 2020 and November 12, 2020 hearing dates on the application: Exhibit 1 Staff Report dated August 19, 2020 w/7 attachments (listed on page 1-2 of the Staff Report) Exhibit 2 Staff report dated November 4, 2020 w/7 attachments. Exhibit 3 Email correspondence between parties to hearing and Examiner Exhibit 4 September 29, 2020 Declaration of Mailing (for Order Correcting Notice) Exhibit 5 Exhibit 6: Procedural: Email chain from Patrick Doherty with Ken Reidy, dated November 12, 2020. Staff PowerPoint FINDINGS OF FACT 1. Applicant. Diamond Parking Services LLC, attn: Doina Copaceanu, 4719 University Way NE, Suite 210, Seattle, WA 98105. 2. Hearing. A virtual hearing on the subject applications was held on August 27, 2020 at 3:00 pm in the Council Chambers of the Edmonds Public Safety Complex. The hearing was re -opened through September 25, 2020 by order dated September 10, Conditional Use P. 8 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2020 for information from staff to clarify its mailed notice procedures. On September 29, 2020, the Examiner issued an Order Correcting Notice to reopen the hearing with corrected posted notice. The City made a request for reconsideration on October 7, 2020 and then withdrew it on October 9, 2020. The re -opened hearing with corrected posted notice was virtually held on November 12, 2020. Substantive: 3. Site and Proposal Description. Diamond Parking Services has requested approval of a conditional use permit application to establish commercial parking at three existing parking areas at 306 Main Street, the Bank of America site. The parking lots are privately owned and have been managed for private and public use for many years. Two of the parking lots have been used for the Bank of America and a third has been used to provide three-hour parking. The two lots used by the Bank of America will continue to be used for bank parking during bank business hours and will be used for paid parking the off -hours. The third area will be commercial parking 24/7. There will be no change to access or the parking lots themselves, just the establishment of paid parking on portions of the lots. 4. Characteristics of the Area. The Bank of America site is at the southeast corner of Main Street and 3rd Avenue South, two blocks west of the fountain and three blocks east of the Ferry terminal. Surrounding parcels are developed with a mix of commercial and multiple residential uses (Att. 3). 5. Adverse Impacts of Proposed Use. The proposal will not create any significant adverse land use impacts. The proposal is categorically exempt from State Environmental Protection Act review under WAC 197- 11-800(6). The parking areas in question are already developed and have been used for decades as parking areas. Surrounding areas are developed with commercial uses so there are no issues of compatibility as commercial parking does not inherently involve any significant land use impacts such as loud noise or offensive odor. As shown in the aerial photograph of Att. 5, the parking areas are landscaped and are consistent in appearance with surrounding parking and commercial uses. No critical areas are located at the project site. During the re -opened hearing Ms. Brewe expressed concern over vehicles parking over the curb onto her property. A condition of approval has been added that requires the Applicant to place signs and/or installing fencing restricting parking to the parking lot if Ms. Brewe can present photographs or other evidence to City staff that vehicles have encroached onto her property more than once within the first year of parking lot operation. 6. Adequacy of Public Hearing Mailed Notice. Mailed notice was sent to property owners within 300 feet of the project site using a list of property owners generated by the Snohomish County Assessor's Office. The County's Assessor provides what it classifies as "taxpayer addresses" for the mailing addresses of the property owners. Conditional Use P. 9 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The Applicant mails the public hearing notice to the taxpayer addresses identified on the mailing list and submits a notarized declaration to the City certifying "that the names and addresses provided represent all properties located within 300 feet of the subject property." The "taxpayer addresses" generated by the Assessor's Office are not necessarily the physical addresses of the subject property. They are self-selected addresses submitted by property owners to the County so that tax statements and the like are sent to a location where the property owner is more likely to receive them. Property owners presumably provide these alternative addresses in situations such as where the property is leased to tenants or the property owner receives mail at a post office box instead of the property itself. When a property owner requests a 300-foot mailing list, the Assessor's Office only provides taxpayer addresses. The City has historically not used the Snohomish County Assessor mailing lists for its own applications. It uses the addresses from the City's GIS parcel layer, which is based upon property addresses generated from the Snohomish County Assessor's Office, which is updated quarterly. City staff are also willing to accept mailing lists from private applicants prepared by the post office or a title company, so long as the lists are based upon Assessor records. The methodology employed by other jurisdictions is relevant to the feasibility and accuracy of the options for deriving mailing addresses of property owners. Mailed notice requirements have been in city and county codes for decades and it is reasonable to conclude that over this period of time communities have adopted procedures that strike a reasonable balance between accuracy and feasibility. In response to Examiner questions regarding the practices of other jurisdictions, City staff submitted the regulatory requirements of the City of Shoreline, Mill Creek and Gig Harbor, as well as the mailing requirements imposed by state law for all development permits governed by the Regulatory Reform Act and the Shoreline Management Act. In general, all these jurisdictions had the same type of mailed notice procedures adopted by Edmonds, i.e. requiring notice to be mailed to property owners identified in County Assessor records within 300 or 500 feet of a project site and not specifying how the mailing addresses are to be derived for those owner lists. City staff were not able to answer the examiner's inquiry about whether other jurisdictions specifically require owner or taxpayer addresses, or gave the option for both. The one outlier to the jurisdictions listed by City staff was the City of Mill Creek. Section 14.07.030A2 of the Mill Creek code requires that notice be mailed to both "all property owners as shown on the records of the county assessor and to all street addresses ofproperties within 500 feet." It appears from this language that Mill Creek requires notice to be mailed to both the taxpayer and the owner addresses. This section of Mill Creek's code has been in place since at least 2013, when it was last amended. The record generated for this proceeding does not reveal any material difference in accuracy between taxpayer and property owner addresses. Both address lists are not Conditional Use P. 10 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 100% effective as demonstrated for this project and the City's Civic Field conditional use permit application, PLN20190058, PLN20190059 and PLN20190060. In the Civic Field applications, the City used owner addresses. Finis Tupper, who lives within 300 feet of the Civic Field project site, didn't receive the notice because he receives mail by post office box as opposed to a mailbox at his owner address. For this project, which as previously noted used taxpayer addresses, Mr. Tupper states that Janet Bakker didn't get mailed notice for the property she owns within 300 feet of the project site because it wasn't mailed to her owner address, which differs from her taxpayer address located in Seattle as shown in Att. 6 to the first staff report, Ex. 1. It's unknown why Ms. Bakker didn't receive notice if it was mailed to her Seattle address. Most of the information in this finding was based upon the information presented in Attachment 2 to Ex. 2, the City's responses to written questions posed by the Hearing Examiner. All hearing participants were given an opportunity to cross-examine staff and/or present their own evidence on the issue and chose not to do so. The Examiner's findings and conclusions are strictly limited to what's submitted into the record and beyond asking questions of the hearing parties, the Examiner cannot conduct his own investigation or engage in any significant cross-examination on issues while maintaining his role as an objective decision maker. From the information submitted into the record the preponderance of evidence establishes that use of either taxpayer or property owner records establishes a reasonable balance between effective notice and the burden placed on the City and/or applicant in complying with notice requirements. As shown in Att. 6 to Ex. 1, the 300-foot address list generated for this project involved 89 property owners. Requiring city staff and/or the applicant to verify that every single of these property owners actually received the mailed notice would be an absurd undertaking. As previously noted, neither taxpayer nor owner addresses are 100% effective in reaching all property owners. Despite this, both lists are taken to be reasonably accurate since they are based upon addresses generated by the Snohomish County Assessor's Office, which uses those addresses to assess property taxes. The combined approach of using both taxpayer and owner addresses in Mill Creek evidences a potentially reasonable alternative that is more effective than the singular use of one or the other address lists, but the evidence does not establish that doubling the amount of mailing (or going through dozens of addresses to ascertain when taxpayer/owner addresses differ) merits the additional effort. The need for this dual approach is undermined by the fact that the state legislature has not found it necessary to require such a dual approach in its notice mandates to all cities and counties under the Shoreline Management Act and the Regulatory Reform Act. In addition, it should be recognized that in addition to the mailed notice, City hearing notice requirements also include posting the property and publishing notice in the local newspaper. See ECDC 20.03.003D. These additional notice requirements provide reasonable assurance the property owners who don't learn of a project through the mailed notice will get this from the other means of notice, if not from seeing the notice directly, then from word of mouth from neighbors who have seen the notice themselves. For all these reasons, the use of either taxpayer addresses or owner addresses is found to be a Conditional Use P. 11 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 reasonably effective means of providing notice to property owners within 300 feet of a development project. 7. Posted Notice. At the August 27, 2020 hearing staff testified that they had not posted notice of the hearing at Edmonds City Hall or the Edmonds Library because the buildings were closed during COVID. In response to questions on whether they had posted at the post office, staff responded that they didn't believe that ECC 1.03.020 required them to post notice at the post office. As of the close of hearing on August 27, 2020, the preponderance of evidence established that staff had not posted at the post office because they didn't believe they were obligated to do so. Subsequent to the August 27, 2020 hearing, in their staff report for the re -opened hearing, Ex. 2, staff clarified that they had not posted at the post office because the building had been demolished. However, staff also acknowledged that the public had limited access to City Hall prior to the hearing for appointments and also that City employees worked at City Hall. The record still doesn't contain any information on how many people have access to the public safety complex, which includes the City's municipal court. As testified by staff at the November 12, 2020 hearing, notice of the re -opened November 12, 2020 public hearing was posted at Edmonds City Hall and the Edmonds Public Safety Complex on October 27, 2020. Staff did not post at the public library because it was closed due to COVID and staff had no access to it. CONCLUSIONS OF LAW Procedural: 1. Authority of Hearing Examiner. ECDC 20.01.003 provides that the Hearing Examiner will hold a hearing and issue a final decision on conditional use permits. 2. Adequacy of Mailed Notice. As outlined in Finding of Fact No. 6, the addresses used for mailed notice of the public hearing for this application were mailed to Assessor taxpayer addresses. Use of these addresses satisfied the City's mailed notice requirements because the addresses were a reasonably accurate means of providing notice to property owners within 300 feet of the project site. This conclusion of law is based upon the legal reasoning outlined in the Overview section of this Decision, adopted by this reference. 3. Adequacy of Posted Notice. As outlined in the Finding of Fact No. 7 and the Overview section of this decision (adopted by this reference), notice was not posted as required by ECC 1.03.020 for the August 27, 2020 hearing. The failure to properly post was remedied by a subsequent posting for the re -opened November 12, 2020 hearing. Although staff eventually clarified that notice could not be posted at the post office identified by ECC 1.03.020 because it had been demolished, there was still a compliance issue with posting notice at City Hall and the Civic Center (now named Public Safety Complex). Despite the two buildings being generally closed to the Conditional Use p. 12 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 public, City and court employees and some limited members of the public by appointment were still accessing the buildings. For these reasons, the validity of the proceedings was still in question and it was prudent to re -advertise the hearing to correct any defect a reviewing court would find in the failure to post notice. For the November 12, 2020 re -opened hearing, staff posted the hearing notice as required by ECC 1.03.020 at the Public Safety Complex and City Hall. Notice was not posted at the library because it was closed to the public due to COVID and staff didn't have access to it. Given staff s lack of access to the library, ECC 1.03.020 would have to be construed as having an implied exception for circumstances where posting would be infeasible or useless due to closure. In the alternative, given the lack of public access to the posting facilities there would likely qualify as harmless error under RCW 36.70C.130(1)(a). Staff s posting conformed to the version of ECC currently in effect for the November 12, 2020 re -opened hearing, not the version that may have applied for the initial August 27, 2020 hearing. The older version required posting at the post office and the current version does not. The version of ECC 1.03.020 in effect at the time of posting applied because the vested rights doctrine does not apply to procedural requirements and also does not apply to conditional use permits. See Potala Village Kirkland, LLC v. City of Kirkland, 183 Wn. App. 191 (2014), review denied, 182 Wn.2d 1004 (2015); Graham Neighborhood Ass 'n v. F. G. Associates, 162 Wn. App. 98 (2011) (vested rights doctrine doesn't apply to procedural requirements). The practice of remedying a defect in public notice by re -doing the notice is a common practice and validated by cases such as Bjarnson v. Kitsap County, 78 Wn. App. 840 (Wash. Ct. App. 1995), in which the court found it appropriate to remedy an appearance of fairness violation by redoing a land use hearing without the participation of a county commissioner who had violated the doctrine. At the very least, the correction of posting error would render the initial error harmless and thus eliminate any grounds for reversal under RCW 36.70C.130(1)(a). 4. Re -Opening Hearing. The hearing was properly re -opened to address potential defects in public notice. As outlined in Finding of Fact No. 2, the hearing was re -opened twice to address potential defects in the public notice provided by the Applicant and staff for the project. The first time was after the examiner discovered after close of the hearing that the mailed notice parameters employed by the Applicant was not consistent with the mailed notice parameters validated by a prior decision issued by the Examiner. The second time was after the examiner discovered after close of the hearing that staffs position advocated at the hearing on the proper posting of land use public hearing was not consistent with ECC 1.03.020. City regulations do not directly address when hearings can be re -opened. However, the City's permit processing regulations are based upon the Regulatory Reform Act, Chapter 36.7013 RCW, which requires that such regulations, "[e]xcept for the appeal Conditional Use p. 13 Findings, Conclusions and Decision 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of a determination of significance as provided in RCW 43.21 C. 075, provide for no more than one open record hearing and one closed record appeal." This requirement would be undermined if multiple hearings are redesignated as re -opened hearings. The line to be drawn at what point new evidence creates the prohibited second hearing is clarified by the Land Use Petition Act ("LUPA"), Chapter 36.70C RCW, which limits judicial review of local land use decisions to the evidence considered in the open record hearing created by the local jurisdiction, subject to a list of narrow exceptions. Authorizing consideration of new evidence at the local level under those same exceptions serves the functional purpose of aligning local review of new evidence with judicial review. RCW 36.70C.120 is the LUPA statute that limits judicial review of local land use decisions to the evidence presented in the open record hearing of the local jurisdiction. This limitation only applies to hearings in which "the parties to the quasi-judicial proceeding had an opportunity consistent with due to process to make a record on the factual issues." RCW 36.70C.120(1). ECDC 20.06.100C4 authorizes the public to participate in hearings on conditional use permits. If the required notice for the hearing has not been provided, those that have missed the opportunity to participate due to the notice defect have arguably been deprived of the opportunity consistent with due process to make a record on the factual issues. For this reasons, a court will almost assuredly consider new evidence in a LUPA appeal regarding improper notice. As such, reopening a hearing to consider this type of evidence at the local level should also be construed as not creating a prohibited second hearing. Indeed, to construe the situation otherwise would significantly undermine the permit processing efficiency objectives of the one hearing rule itself. It would create a situation where an applicant could be subject to a judicial ruling two years after final decision requiring a rehearing due to the notice defect, as opposed to having the defect corrected immediately by the local jurisdiction. 5. Timeliness of Final Decision. The Final Decision in this matter was completed within ten business days of the close of the record as required by state and city regulations. During the hearing review process Finis Tupper, not the Applicant, objected to the timeliness of the Decision, twice, asserting that the Final Decision should have been issued within ten days of the close of the initial hearing on August 27, 2020. Neither state nor City regulations required the decision to be issued within ten working days of the first day of hearing on August 27, 2020. Rather, both regulations only required that the Final Decision be issued within ten working days of the close of the hearing, which was done in this case. RCW 35A.63.170 requires hearing examiner decisions to be issued within "ten working days following conclusion of all testimony and hearings." ECDC 20.06.13013 provides that decisions shall be issued "...within 10 working days after the close of the record of the hearing and within 90 days of the opening of the hearing..." This Final Decision was issued on November 15, 2020, two days after the close of the November 12, 2020 hearing. This two day time period was clearly within ten working days of the "conclusion of all testimony and hearings" as required by RCW Conditional Use p. 14 Findings, Conclusions and Decision I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 35A.63.170 and within ten working days of the "close of the record of the hearing" as required by ECDC 20.06.130B. Substantive: 6. Zoning Designations. The parking areas are zoned a combination of BD 1 and BD2. 7. Permit Review Criteria. Conditional use permit criteria are governed by ECDC 20.05.010. Variance criteria are governed by ECDC 20.85.010. All applicable criteria are quoted in italics below and applied through corresponding conclusions of law. ECDC 20.050.010: No conditional use permit may be approved unless all of the findings in this section can be made. A. That the proposal is consistent with the comprehensive plan. 8. The criterion is met. The Comp Plan is silent on commercial parking. However, since the City's zoning regulations authorize commercial parking in the Downtown Business zones through a conditional use permit, it is found to be consistent with the Comprehensive Plan. ECDC 20.05.010(B): Zoning Ordinance. That the proposed use, and its location, is consistent with the purposes of the zoning ordinance and the purposes of the zone district in which the use is to be located, and that the proposed use will meet all applicable requirements of the zoning ordinance. 9. The criterion is met. According to the use table in ECDC 16.43-1, commercial parking lots are authorized in the BD 1 and BD2 sites as conditional uses. As identified in the staff report, new commercial parking lots are subject to landscaping standards ECDC 20.05.010(C): Not Detrimental. That the use, as approved or conditionally approved, will not be significantly detrimental to the public health, safety and welfare, and to nearby private property or improvements unless the use is a public necessity. 10. The criterion is met. As determined in Finding of Fact No. 5, the proposal will not create any significant adverse impacts, which includes impacts to adjoining property owners. Conditional Use p. 15 Findings, Conclusions and Decision 2 9 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 At the hearing, a couple Edmonds business owners and/or workers expressed concern over the lack of parking in downtown Edmonds and a further concern that if people have to pay for parking, this will dissuade people from patronizing downtown businesses. In response, City staff noted that the City is studying the issue and looking for solutions. Legally, that solution cannot involve the Applicant because the Applicant's proposal is not causing or contributing to parking problems. Development can only be made to mitigate impacts that it creates. See RCW 82.02.020; Burton v. Clark County, 91 Wn. App. 505 (1998). The Applicant is currently not required to make its parking areas available to the public. Consequently, the Applicant's choice to use those areas for paid parking does not create any additionally need for parking that the Applicant can be legally required to mitigate. ECDC 20.05.010(D): Transferability. The hearing examiner shall determine whether the conditional use permit shall run with the land or shall be personal. If it runs with the land and the hearing examiner finds it in the public interest, the hearing examiner may require that it be recorded in the form of a covenant with the Snohomish County auditor. The hearing examiner may also determine whether the conditional use permit may or may not be used by a subsequent user of the same property. 11. As requested by the City, the conditional use permit shall run with the land. DECISION The conditional use permit is approved and authorized to run with the land as proposed subject to the following conditions: 1. A building permit is required for improvements to the site including but not limited to signage, kiosk installation, restriping, updating landscaping, etc. 2. Diamond Parking Services must obtain a City business license. 3. If Kelly Brewe, as an adjoining property owner, documents that vehicles have encroached onto her property on more than one occasion within the first year of parking lot operation, the Applicant shall install signage, enhanced curbing and/or fencing as determined necessary by staff to prevent further encroachments. Dated this 15th day of November 2020. Conditional Use Phir A. Qlbrechts City of Edmonds Hearing Examiner p. 16 Findings, Conclusions and Decision 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Appeal Right and Valuation Notices This land use decision is final and subject to closed record appeal to the City Council as authorized by ECDC 20.01.003. Appeals must be filed within 14 days of the issuance of this decision as required by ECDC 20.06.030(B). Reconsideration may be requested within 10 calendar days of issuance of this decision as required by ECDC 20.06.140. Affected property owners may request a change in valuation for property tax purposes notwithstanding any program of revaluation. Conditional Use p. 17 Findings, Conclusions and Decision