The Kirkland City Council sparked some fireworks of its own last week as a meeting lit by a dramatic stand-off over questions of fairness eventually ended with a council member appearing to disclose privileged information in a controversial land-use appeal.

The Council met July 1 to consider a variety of issues and adjudicate appeals of two downtown redevelopment projects. But tempers frayed as it considered the Bank of America redevelopment project on Kirkland Avenue and Lake Street South. The two quasi-judicial hearings on the projects were continued from previous meetings.

Fairness issues could derail BofA appeal

At a hearing last month the Council asked the developer of the Bank of America/Merrill Gardens downtown project, SRM Development, and the group appealing the project, Citizens for a Vibrant Kirkland (CiViK), to meet and come to an agreement over plans for a five-story development at the corner of Kirkland Avenue and Lake Street. With the two sides unable to reach a compromise plan, however, SRM submitted revised plans to the city last Tuesday in an attempt to reopen the appeal.

This started a series of testy exchanges amongst what appeared to be a deeply divided council. Jessica Greenway, Tom Hodgson and Mayor Jim Lauinger, who were all opposed to SRM’s original plan, were unwilling to review the modified plans, while Joan McBride, Bob Sternoff and Mary-Alice Burleigh supported SRM’s request.

Councilman Dave Asher, who had originally supported the appeal, thus became the key voice to reopen the hearing when he asked to view SRM’s updated plans.

“Something’s going to be built on that land,” Asher said. “I think it’s up to us … It’s good for the city. We should open it up; see if it changes our mind.”

SRM presented a revised plan that would step-back the building’s top stories further from the street and update some of its exterior features. At issue with the project has been an appearance of more than two stories along Lake Street and a fifth story allowed for “superior” retail.

CiViK attorney J. Richard Arambaru expressed outrage that SRM was allowed to present a “brand-new” proposal that CiViK had not seen. He requested additional time to respond and ask questions about the proposal and demanded answers from the planned tenant, Bank of America.

The highest drama of the night, however, was reserved for the end of the meeting when Arambaru told the Council he knew it had discussed litigation risks — essentially the city’s chances of being sued based on the different possible outcomes of the appeal — with the city attorney as far back as April.

“I can’t tell you how offended I was to find litigation risks were being discussed in a private memo to the Council before this hearing started,” said Arambaru, expressing his frustration with the Council and requesting a copy of the risk assessments for himself.

Then, despite protests from some of his fellow council members, Hodgson said he was willing to waive his attorney-client privileges. He then gave Arambaru a manila envelope containing what he said were the requested documents. Envelope in hand, Arambaru began reviewing the documents inside almost immediately.

Then things got strange: Asher attempted to make a motion for an on-duty police officer to retain the documents, while other council members tried to determine exactly what had just happened. City Attorney Robin Jenkinson said the motion was out of the police captain’s jurisdiction. The meeting ended soon afterward with the appeal set to resume Aug. 5.

A subsequent request by the Kirkland Reporter to the city clerk’s office for the documents was denied. In an e-mailed response, City Clerk Kathi Anderson wrote: “Mr. Hodgson’s attempt to waive attorney-client privilege was unauthorized and not an effective waiver of the city’s attorney-client privilege with respect to any privileged records contained in the envelope.”

U.S. Rep. Jay Inslee pays Kirkland a visit

The meeting was initially buoyed by a surprise visit from U.S. Rep. Jay Inslee, D-Bainbridge Island. Inslee complimented Kirkland’s approach to sustainable living and clean energy and asked if he could do anything for the city in Congress.

“I’m here for my marching orders,” he said.

The Council requested increased partnerships in green energy jobs, energy infrastructure and more funding for human services, but Inslee warned such requests might be difficult to push through with the federal government dealing with the Iraq War, Bush tax cuts and overall increases in expenditures.

McLeod Project appeal denied

The City Council voted 6-1 to accept modified plans for the McLeod redevelopment project along Lake Street, denying an appeal. Councilwoman Greenway voted against.

The 12 appellants, most of whom live in the Portsmith Condominiums, opposed the proposal primarily because of its plans for a fourth story. The increased height — up from the site’s current two stories — would partially obstruct some views from the condos.

The modified design uses increased step-backs to make the four-story building appear two stories when viewed from Lake Street South. The Council will likely finalize the decision to approve the new proposal at a July 15 meeting.

*other notes from the Council meeting:

— Assistant City Manager Marilynne Beard was honored for her 20 years of service with the city.

— The Council voted to delay a decision to place a utility-tax increase on the ballot until 2009.