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Mayor Hosterman and Councilmember McGovern confirmed with the City Manager that background checks are done for all City employees who work with children, the City works with sports leagues in their requirements for coaches, and that there were some civic organizations that do not mandate background checks. Councilmember Sullivan confirmed that upholding the appeal denies the project and agreed that the issue was between Mr. Pfund and the State as to why he could not obtain the license. He thought that the first issue was the license and second was the suitability of the site and he was not comfortable with approving the request, even with a license. Councilmember Cook-Kallio said part of it sounds like that if Mr. Pfund obtains a license, the State would be satisfied that other facility issues would be met, such as safety and welfare, fencing, access, activities in the facility, and that items in the Resolution would be satisfied, with option 2. She acknowledged there are not many similar facilities in town to accommodate children needing martial arts training, but she was opposed due to the background check not being completed. Councilmember McGovern said the City has required 75 feet of outdoor space per child with a 4 foot fence, and only one application was approved over the counter which was a mistake. She said these types of applications should not be approved over the counter and suggested upholding the requirements for a childcare facility. Councilmember Cook-Kallio noted that the Council might want to look at its Municipal Code in keeping up with the needs of the City because of the way childcare is done now versus 25-30 years ago, which the Council agreed was a separate matter. City Manager Fialho recalled that the Council's denial last May was determined due to the business looking like and operating like a childcare center and specific direction was given to secure the license as a requirement for approval. The Council has two options; 1) to deny the use and direct Mr. Pfund to secure his license and return to the City; or 2) indicate he is on the right track, approve him as a childcare site but defer the occupancy until the state issued license can be produced. Mayor Hosterman voiced support for the second option as stated by the City Manager, agrees with the concern regarding the background check, but also wanted to adhere to local codes. Councilmember Cook-Kallio said she did not want to change the rules of the game in the middle of the process and the issue for her was the background check and the childcare license. If Mr. Pfund met those rules, she did not believe he needed to return to the Council. Councilmember McGovern said if Mr. Pfund returns, the Council has the ability to work with an E occupancy, outdoor play area, bathrooms, and she also did not believe the issue of the facility had yet been resolved. Councilmember Sullivan said he would uphold the Resolution previously adopted by the Council. He said option 2 is different; it gives conditional approval to operate the facility as proposed pending receipt of a childcare license. City Attorney Roush said in addition from obtaining the required state license, the applicant would need to meet the requirements of the E occupancy, which is a separate condition. Councilmember Thorne felt the only issue the Council had was the childcare license, as all issues of the E occupancy are solvable and said he would support option 2. As soon as the City Council Minutes Page 7 of 9 January 6, 2009