HomeMy WebLinkAbout2017-08-07 City Council Minutes Approved City Council Minutes—August 7,2017
Mayor Laurie Gere called to order the regular Anacortes City Council meeting of August 7,2017 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: Mr. Johnson reported from the committee meeting earlier in the day regarding
drainage in Marine Heights.
Personnel Committee: Mr. Miller reported from the committee meeting earlier in the evening at which the
members discussed upcoming negotiations with the police and fire bargaining units whose contracts
expire at the end of the year,as well as the Senior Center discussion scheduled later on the agenda.
Mr. Johnson reported from the Port/City Liaison meeting the prior Tuesday at which those present
discussed the prilled sulfur agreement between the city and the Port,the port property redevelopment
strategy analysis under way with Maul Foster&Alongi, ongoing work by the Port, city and EDASC on
the Maritime Strategic Plan,and exploration of options for the Olson Building,possibly for workforce
housing.
Mayor Gere reported that the prior week Elizabeth May,Member of Parliament representing the Saanich-
Gulf Islands,visited Anacortes,recognized Anacortes for its Sister City relationship with Sidney,British
Columbia, and also connected with Shannon Point Marine Center personnel to express support for
environmental protection of the Salish Sea.
Mayor Gere reported that Maritime Strategic Plan interviews had identified what local marine businesses
need to continue to be successful in the community and demonstrated a great deal of enthusiasm among
the businesses.
Public Comment
No one present wished to address Council on any topic not already on the agenda.
Consent Agenda
Ms. Lovelett removed Item 5e, Contract Modification: Wastewater Treatment Plant Outfall Repair(13-
020-SEW-004), from the Consent Agenda. Ms. Lovelett moved, seconded by Mr. Johnson,to approve the
following Consent Agenda items. The motion carried unanimously by voice vote.
a. Minutes of July 24, 2017
b.Approval of Claims in the amount of. $802,724.20
c. Contract Modification: March Point Shoulder Widening(15-006-TRN-001)
d. Interlocal Agreement with Port of Anacortes for Emergency Repairs on Outfall
The following vouchers/checks were approved for payment:
EFT numbers: 85862 through 85944,total$679,471.90
Check numbers: 85945 through 86003,total$114,060.73
Wire transfer numbers: 218692 through 219746,total $14,577.78
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e. Contract Modification: Wastewater Treatment Plant Outfall Repair(13-020-SEW-004)
Ms. Lovelett asked Public Works Director Fred Buckenmeyer for more information on the sizable
increase in the contract. Mr. Buckenmeyer explained that the original $55K contract was for initial design
and that the $105K modification was for final design and services during construction. He explained that
this sequence of phasing was standard for this type of contract as the full scope of work for construction
services is not typically known until the construction contract is awarded. Ms. Pickett moved, seconded
by Mr. Johnson,to approve the contract modification to the wastewater treatment plant outfall repair. The
motion carried unanimously by voice vote.
OTHER BUSINESS
Ordinance 3005: Wave Franchise Agreement
City Attorney Darcy Swetnam presented Ordinance 3005 granting Astound Broadband,LLC dba Wave a
non-exclusive franchise for the transmission of telecommunications in,through,over and under city
rights-of-way. Ms. Swetnam reported that this would supersede the prior franchise agreement with Wave
following protracted negotiations due to a change in Wave's corporate structure. She briefly outlined the
state and federal laws governing telecommunications services fees on telephone service, cable service and
internet service and advised that the proposed franchise had been reviewed by legal counsel at Foster
Pepper. Mr. Miller questioned the equity of charging franchise fees to Comcast but not to Wave. Ms.
Swetnam explained the difference in the services offered by the two companies and the resulting
difference in their coverage under state and federal law; she recommended against testing those laws in
court.
Mr.Walters moved,eventually seconded by Mr. Johnson,to approve the franchise agreement as
presented.
In response to a query from Mr. McDougall,Mr. Buckenmeyer highlighted the terms of the franchise
agreement providing value to the city. Councilmembers discussed with staff the value of competition
among service providers including the city's own planned fiber utility,whether the agreement could be
modified to stipulate net neutrality, and the franchise provisions encouraging undergrounding of utilities.
Ms.Lovelett moved, seconded by Mr.Johnson,to table the motion for a week to find out if net
neutrality could be written into the agreement.
Mr. Johnson suggested that Wave staff attend a Council meeting to respond to councilmember questions.
Mayor Gere invited members of the audience to comment on this agenda item.
Fred Miller representing Wave in Kirkland,Washington, said he would like to invite Wave's new
investors to address Council and answer its questions.He reported that the new management was much
more aggressive in competing with other cable companies and wanted to continue Wave's partnership
with the city, offer the same free dark fiber connections it had provided to the city for the past eleven
years, and improve broadband options to the extent allowed by federal rules. He said he doubted the city
could have a voice in net neutrality but that he would find out from Wave's new investors what their
position was on net neutrality. He said Wave does support fair and open access and was negotiating a
separate agreement with the city in lieu of a franchise fee. Mr. Miller asked Council to take action on the
franchise as soon as its questions were answered due to the time sensitive nature of the agreement.
Councilman Miller asked Ms. Swetnam to review Section 9c of the proposed agreement and address
equity issues between providers.
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Vote on motion to table: Ayes—Pickett,Adams, Lovelett, McDougall, Miller and Johnson. Nays
Walters.Motion carried.
Anacortes Senior Center Interlocal Agreement with Skagit County
Mr. Walters disclosed that as a fixed salary employee of Skagit County, one of the contracting parties to
the agreement,under RCW 42.23.040 he had a remote interest in the agreement and for the city to enter
into the agreement his vote could not be counted.
Ms. Swetnam presented an interlocal agreement with Skagit County regarding provision of community
services at the Anacortes Senior Activity Center. She acknowledged the presence of ACAS staff and
board members and summarized the maintenance,programming and staffing of the center. Ms.
Swetnam's slide presentation was added to the packet materials for the meeting. She reported that in 2016
the ASAC Foundation had sought city assistance to better tailor programming to meet end user needs in
Anacortes so the city and county began discussing how the city could take over management of some
portion of the center. Ms. Swetnam summarized the current and proposed structure for programming
management and funding. She highlighted key components of the proposed agreement which would go
into effect September 5,2017 and by which Skagit County would retain control and responsibility for
nutrition programming and Anacortes would maintain the building,hire the director, and achieve local
control of non-nutrition programming for local residents. Ms. Swetnam reported that Skagit County
Commissioners had approved the interlocal agreement earlier in the day. She said that if Council were to
also approve the agreement, a budget amendment would be presented for Council action at a future date.
Mr. Johnson asked to hear from Foundation members about why they felt this change was necessary.
Joann Ashlock,president of ASAC Foundation board, said that the board had been working to effect this
change for quite a while,believing that being under the city would allow more local control of the center
and contribute to the Anacortes senior population in a more productive and efficient way. Michelle Pope,
board member, said that the very strong and active board's efforts were sometimes thwarted by county
management and that as the senior center grew into a wider community center it needed to be able to
better advertise and communicate with center users. Ms. Pope added that the county commissioners were
in support of the transition.
Ms. Lovelett spoke in support of the agreement. Mr. Miller concurred, saying that the few thousand
dollars of additional expense would be well spent to leverage the fine work done by the board. Mr. Adams
asked if the agreement included a CPI adjustment for the director salary support from Skagit County. Ms.
Swetnam said that was not part of the agreement but that the established annual rate would comfortably
provide for the director's salary and benefits during the term of the agreement.
Ms. Lovelett moved, seconded by Mr. Miller,to authorize the mayor to execute the Interlocal
Cooperation Agreement between Skagit County and the city for provision of community services at the
Anacortes Senior Activity Center. Vote: Ayes—Pickett,Adams, Lovelett,McDougall,Miller and
Johnson. Abstain—Walters. Motion carried.
Blue Heron Circle Reservoirs Proiect Funding
Finance Director Steve Hoglund initiated a discussion of funding options for the Blue Heron Circle
reservoirs project following the state legislature's failure to enact a capital budget and the resultant lack of
funding for the DWSRF loan previously awarded to the city. Mr. Hoglund explained the Declaration of
Official Intent to Reimburse Expenditures from Proceeds of Bonds included in the packet materials,in
case funding by bond issue was voted by Council in the future. He said that he had been inclined to
recommend a bond issue but had learned from the city's financial advisor earlier in the day that the state
might rework the loan to allow it to be used as a refunding mechanism, in which case it could be used to
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repay a short term loan or line of credit when a capital budget was eventually adopted. Mr. Hoglund
cautioned that a capital budget was unlikely to be adopted for at least another year and the restructuring of
the loans was also not guaranteed. Mr. Miller said the 1%DWSRF loan was clearly the best option and
said the city just needed to arrange bridge funding until the capital budget was adopted. Mr.Hoglund
warned that if the funding for the DWSRF loan was not approved in the next year,the city needed to have
a financing plan in place showing that it was paying back any interfund loans within three years which
would not be supported by water fund cash flow at the current water rates. He recommended issuing an
interfund loan which would be repaid September 1,2018 and that if no capital budget had been adopted at
that point, issuing a bond to repay the interfund loan but he warned that bond rates might rise in the
interim. Mr. Walters supported that strategy. Mr. Adams asked if reserve funds could be used. Mr.
Hoglund recommended against using general fund emergency reserves. He said Council would need to
make a decision by November in order to implement whichever funding strategy it chose. Ms. Lovelett
requested that staff bring back a briefing listing each proposed funding option with financial impacts of
each. Mayor Gere tasked Mr. Hoglund with providing that information at a future meeting.
There being no further business,at approximately 7:10 p.m. the Anacortes City Council meeting of
August 7,2017 was adjourned.
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