HomeMy WebLinkAbout2017-09-05 City Council Minutes Approved City Council Minutes—September 5,2017
Mayor Laurie Gere called to order the regular Anacortes City Council meeting of September 5,2017 at
6:00 p.m. Councilmembers Eric Johnson,Ryan Walters,Erica Pickett,Brad Adams,Liz Lovelett,Bruce
McDougall and Matt Miller were present. The assembly joined in the Pledge of Allegiance.
Announcements and Committee Reports
Public Works Committee: Ms. Lovelett reported from the committee meeting earlier in the evening. She
said that a new water rate study would come before Council in the weeks ahead exploring tiered rates,
multifamily rates, and related topics. Ms. Lovelett reported that the committee also received updates on
the fiber project and on the prilled sulfur interlocal agreement with the Port of Anacortes which would be
discussed later on the agenda.,
Mr. Johnson reported from the Port/City Liaison meeting earlier in the day at which those present
discussed the prilled sulfur agreement,the wastewater treatment plan outfall project,Port property
redevelopment,ongoing work on the maritime strategic plan,the future of the Olsen Building, and the
city development regulations update.
Public Comment
No one present wished to address Council on any topic not already on the agenda.
Consent Agenda
Mr. Johnson moved, seconded by Ms. Lovelett,to approve the following Consent Agenda items. The
motion carried unanimously by voice vote.
a. Minutes of August 28,2017
b. Approval of Claims in the amount of. $389,703.80
The following vouchers/checks were approved for payment:
EFT numbers: 86232 through 86272,total$103,727.69
Check numbers: 86273 through 86318,total$288,063.04
Wire transfer numbers: 220033 through 220961,total $3,559.47
PUBLIC HEARINGS
Public Hearing: Ordinance 3008: Anacortes 2018-2023 Transportation Improvement Plan (TIP)
Public Works Director Fred Buckenmeyer presented an ordinance to adopt the annual six-year
transportation improvement plan which had traditionally been part of the annual budget and capital
facility plan adoption process but due to the switch to a biennial budget would not be part of that process
for 2018. Mr. Buckenmeyer listed the projects included in the TIP that were pending state or federal
funding or that were eligible for funding with transportation impact fees. He emphasized that adopting the
TIP did not obligate the City to any financial course of action but did allow the state to plan and predict
funding requirements for the six years ahead.
Ms. Lovelett observed that the copy of the TIP in the packet materials for the meeting was difficult to
read so she recommended uploading a clean copy of the document and allow an additional week for more
public comments. Mr. Miller agreed. Mr. Adams requested hard copies for each councilmember as well.
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Mr. Johnson asked if the 17th Street project between Q and R Avenues might generate impact fees. Mr.
Buckenmeyer responded that any eventual projects in that area might indeed generate impact fees or other
developer contributions and that inclusion of that project in the TIP allowed but did not require use of
state or federal funds if those should become available.
Mayor Gere invited members of the public to comment on this agenda item.No one present wished to
address the Council. Mayor Gere left the public hearing open until the next regular meeting pending
posting of a more legible copy of the TIP.
Mr. Adams asked which projects had changed in the 2018-2023 TIP compared to the 2017-2022 TIP. Mr.
Buckenmeyer said he would verify and report back to Council. Mr. Walters asked that the agenda bill
highlight those changes.
Mr. Walters asked that the City Clerk be authorized and required to review packet materials and reject
them if they are not readable.
OTHER BUSINESS
Requested Amendment to Prilled Sulfur Interlocal Agreement with Port of Anacortes
City Attorney Darcy Swetnam introduced a discussion of the interlocal agreement(ILA)between the City
and the Port regarding the use and operation of the Pier 2 terminal for prilled sulfur. Her slide
presentation was added to the packet materials for the meeting.
Ms. Swetnam outlined key components of the current ILA including the payment provisions, duration of
the agreement, and modification language. She explained that on July 20,2017 the Port had requested that
the ILA be voided. Ms. Swetnam then summarized considerations related to that request including the
SEPA mitigated determination of non-significance,road maintenance costs and public safety response
costs borne by the City. She presented three action options for Council consideration including denying
the Port's request,proposing a modification to the ILA, or agreeing to terminate the ILA.
Mr. Buckenmeyer then summarized the history of the ILA. He emphasized that the Port originally
approached the City to propose the ILA and had also proposed the $2.50/ton mitigation fee, and that
neither of those proposals originated from the City. Mr. Buckenmeyer said the mitigation funding was
now incorporated in the City's long term pavement rehabilitation plan, including ongoing maintenance of
the Q/R Avenue corridor which was resurfaced in 2014. He said that lacking some sort of agreement with
the Port,the City would have all of the ongoing impact with none of the ongoing mitigation. Mr.
Buckenmeyer also clarified that comparison of mitigation fees with transportation impact fees was not
relevant as impact fees are limited to minimizing the impact of increased peak hour trips on pedestrian
safety,vehicle safety, and corridor capacity, and cannot be used for maintenance projects.
Fire Chief Richard Curtis then addressed the hazard of prilled sulfur. His handout was added to the packet
materials for the evening. Chief Curtis said the hazard is not great in prilled sulfur's normal state when
being transported,the concern was in its extraordinary state, if a fire or explosion exposed prilled sulfur to
burning which releases two very toxic chemicals,hydrogen cyanide and hydrogen sulfide. Fire
department staff require special training to be prepared to deal with such a situation. Chief Curtis reported
on the one response event to date, on May 23,2017.Mr. McDougall asked the annual cost of the fire staff
training. Chief Curtis referred to the packet materials which summarize the fire department training and
equipment costs of approximately$18K per year. The Chief responded to councilmember questions about
the effect of wind direction on evacuation plans and firefighting techniques for sulfur fires.
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Dan Worra,Port Executive Director,then addressed Council, saying he had no disagreement with what
City staff had presented but wished to add a few points and answer councilmember questions. Mr. Worra
emphasized the partnership between the Port and the City and the value of that relationship. Mr. Worra
explained that some of the assumptions from the original ILA had not come to fruition,noting that the
total tonnage hauled had not turned out to be as much as planned. He added that the Port had not
anticipated capital improvements necessary to the Pier 2 facilities but that$11M of capital improvements
had now been identified, including a$2M repair beginning in October. Mr. Worra said that at the
beginning of the agreement,the Port charged customers $12.50/metric ton and paid the City$2.50/metric
ton of that, or 20%of the total fee. The price charged by the Port had fallen to $10.50 in 2017, of which
the City still received$2.50/metric ton, leaving less available for Port capital projects. Mr. Worra stressed
that the mitigation payments were only for truck route maintenance and fire safety mitigation related to
prilled sulfur. He called the ILA a win-win for the Port and the City,with over$900K paid to the City
over the course of the agreement and 50 jobs created,but that in the current economic climate the Port
would have to be more aggressive with its pricing to retain that shipping business in the community.
Mr. Worra responded to councilmember questions regarding a letter from Port customer Chemtrade; the
letter was provided to councilmembers prior to the meeting and added to the packet materials. He
discussed uses of prilled sulfur and other potential disposal options including its use as fertilizer.
Councilmembers requested more information on the percentage of trucks on the Q/R corridor that carry
prilled sulfur,the Port's operating costs for the prilled sulfur operation,the jobs created by the operation
in terms of FTE or person years and the wage rates for those jobs. Mr. Adams acknowledged the
increasingly competitive market and said it would take more discussion to come up with a rate that would
make sense for both jurisdictions and still protect the jobs involved. Mr.Miller cautioned that market
conditions may eventually cease to make the operation viable. Ms. Lovelett expressed concern that
increasing automation might put some of the sulfur handling jobs in jeopardy. Council expressed interest
in determining a mitigation fee representative of the actual impact on road maintenance and public safety
expenditures due to Port operations. Mr. Worra stated that Anacortes is the only city that charges this type
of fee to port export operations and noted that no other business or entity pays that fee. Several staff noted
that the Port also does not pay property tax to support the roadways,which private businesses do through
property tax and which citizens do through taxes and through license tabs. Mr. Worra said that that the
Port does pay leasehold excise tax. He suggested an alternative of leaving the existing the ILA in place
but vacating the fees for three years,then revisiting the issue based on market conditions at that time.
Mayor Gere concluded that City and Port staff would continue working together to provide more
information to Council. Referring to the Chemtrade letter distributed prior to the meeting,Mr. Johnson
asked staff to also address why U.S.ports allow shipping of sulfur with more than 10 ppm of hydrogen
sulfide gas whereas Canadian ports won't allow that.
Mayor Gere invited members of the public to comment on this agenda item.
Port Commissioner John Pope,4001 Peters Lane, called the prilled sulfur operation very valuable to the
community and noted that the Port is now a little threatened in one of its main avenues of business. He
said the Port does not pay property tax but pays significant leasehold tax that supports the City. Mr. Pope
said the Port accounting department could detail out the tax revenue and the jobs related to the prilled
sulfur operation. He said business competitiveness is the key and the commodity that this county can
export is what the Port is set up to do. Mr. Pope noted that the ILA is odd compared to other ports and
that no other specific user pays to use freight corridors. He recognized that sulfur operations do require a
prepared fire department and said that training should be on the Port but suggested that the benefit of the
jobs to the local economy makes up for most of the street impact.
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Port Commissioner Joe Verdoes, 13399 Driver Road,reported from his farming background that sulfur is
a fertilizer that lowers soil pH, is good for blueberries and related crops, and is a common commodity at
agricultural suppliers. He noted that many non-toxic substances are toxic when burned, including
plywood. Mr. Verdoes said it was worth looking closer at the user pay concept of road impact.
Mr. Walters praised the written materials from City and Port staff included in the packet and said with a
bit more data a compromise position could probably be reached. Mayor Gere confirmed that staff would
bring more information back to Council for action. Mr. Worra thanked Council and staff for the
opportunity to continue the discussion.
There being no further business,at approximately 7:20 p.m. the Anacortes City Council meeting of
September 5, 2017 was adjourned.
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