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HomeMy WebLinkAbout2016-10-17 City Council Minutes Approved City Council Minutes—October 17, 2016 Mayor Laurie Gere called to order the regular Anacortes City Council meeting of October 17, 2016 at 6:00 p.m. Councilmembers Eric Johnson, Erica Pickett, Brad Adams, Liz Lovelett and John Archibald were present. Councilmembers Ryan Walters and Matt Miller were absent. Mayor Gere reported that Mr. Walters and Mr. Miller were both out of town. The assembly joined in the Pledge of Allegiance. Announcements and Committee Reports Public Safety Committee: Mr. Adams reported from the meeting the prior week that the committee discussed the volunteer program with Fire Chief Richard Curtis and would bring that topic back to consider with the full Council in conjunction with the budget review. Mr. Adams reported that the committee also discussed dog licenses for very young and very old dogs. Finance Committee: Mr. Archibald reported from the meeting the prior week that the committee discussed the draft general fund cash reserve balance policy. Public Works Committee: Ms. Lovelett reported from the meeting earlier in the evening that the committee discussed the 500KW solar array project proposed by Ameresco. She advised that a decision would need to be made in the near future and expressed support for the project. Ms. Lovelett also reported that pavement striping would proceed soon on D Avenue dependent on weather. Public Comment No one present wished to address Council on any topic not already on the agenda. Consent Agenda Ms. Lovelett moved, seconded by Mr. Johnson, to approve the following Consent Agenda items. The motion passed unanimously by voice vote. a. Minutes of October 10, 2016 b. Approval of Claims in the amount of: $485,218.91 C. Contract Award: Development& Design Standards Code Update (MAKERS) d. Contract Award: Professional Services Contract for Technical Assistance on Updates to Geologically Hazardous, Frequently Flooded, Aquifer Recharge Critical Areas Regulations (GeoEngineers) The following vouchers/checks were approved for payment: Voucher(check) numbers: 82353 through 82462, total $393,402.80 EFT numbers: 208454 through 209172, total $107,651.22 OTHER BUSINESS WSDOT Presentation of the Sharpes Corner Roundabout Proiect Jay Drye, Washington State Department of Transportation Northwest Region Assistant Regional Administrator, introduced Gabe Ing, Project Engineer for the SR20 Sharpes Corner Vicinity Improvements project. Mr. Ing reviewed his slide presentation which had been included in the Council packet for the meeting. He summarized the traffic conditions to be addressed by the improvements, then reviewed the channelization plan and the revised design for non-motorized access along the corridor. Mr. Ing reported the expected level of service deterioration without the improvements and the much higher LOS and safety anticipated with the improvements. He explained the intended traffic flow through the roundabout from each direction. Ms. Lovelett requested examples of comparable roundabouts. Mr. Ing compared the planned Sharpes Corner roundabout to the Pole Road roundabout in Bellingham. He shared accident statistics for the two intersections and predicted a significant reduction in collisions at Sharpes corner Anacortes City Council Minutes October 17, 2016 1 after the roundabout was installed. Mr. Ing and Mr. Drye advised that the pedestrian crossings were being designed now that the lane configuration had been established. They discussed the extensive public outreach planned for the intersection. Ms. Pickett complimented WSDOT on its public outreach to date. Mr. Adams asked how long the construction would last and how traffic would be detoured during construction. Mr. Ing said WSDOT was currently developing the phasing plan for the project but confirmed that the project was intended to be constructed entirely during the 2018 construction season. Mr. Johnson suggested legislation to enforce use of turn signals in roundabouts as is standard practice in other countries. Mayor Gere invited members of the audience to comment on this agenda item. No one present wished to address the Council. WSDOT Presentation of the 2017 SR 20 Spur Paving Proiect Mr. Drye introduced Andrea Petrich of the WSDOT communications staff. He then introduced Shane Spahr, WSDOT Project Engineer for the SR20 Spur/Sharpes Corner to Anacortes Ferry Terminal paving and ADA project. Mr. Spahr reviewed his slide presentation which had been included in the Council packet for the meeting. He clarified that the 2017 paving project would include the portion of SR20 Spur between Sharpes Corner and the Commercial Avenue roundabout, and also the portion from the intersection of 12th Street and Commercial Avenue west to the Washington State ferry terminal, but would not include Commercial Avenue itself, which was slated for paving in 2021. In response to a question from Ms. Lovelett, Mr. Spahr indicated WSDOT would perform maintenance only on Commercial Avenue until 2021. Mr. Spahr described the pavement grinding, crack repair, preleveling, and asphalt paving that would be performed on both sections. He also demonstrated the propose rechannel ization of the R Avenue intersection with SR20. He noted suggestions from Ms. Lovelett and Mr. Johnson that the jersey barrier west of Sharpes Corner be reconfigured to allow standing water to drain and to reflect at night. Mr. Spahr described the ADA ramp replacement that would be part of the western end of the project and advised that only the vehicle travel lanes, not the shoulders, would be ground and repaved. Mr. Spahr advised that based on public input at a recent open house, WSDOT would schedule the project to be constructed at night to minimize traffic impacts and that the contractor would be required not to leave exposed ground pavement for long periods. Mr. Spahr responded to concerns expressed by Mr. Johnson and Ms. Lovelett about safety for cyclists along the 12th Street/Oakes Avenue corridor. He advised that the shoulder widths would not be able to be appreciably altered, counter to previous reports. Mayor Gere invited members of the audience to comment on this agenda item. No one present wished to address the Council. Council Review of 2017/2018 Budget: Public Works Finance Director Steve Hoglund noted that the 2017-2022 capital facilities plan (CFP)would be considered simultaneously with the 2017/2018 budget, department by department. Public Works Director Fred Buckenmeyer presented the proposed budget for divisions within his department, beginning with Facilities on page 62. He reported that capital projects for that division were reflected in the Professional Services budget line for City Hall and the Senior Center and in the Buildings & Structures budget line for other buildings. Mr. Buckenmeyer pointed out that capital and maintenance expenditures previously included in individual department budgets had been consolidated into the Facilities budget for 2017/2018. Mr. Hoglund displayed and reviewed the corresponding list of projects included in the Facilities CFP. Ms. Lovelett inquired if the proposed $65K roof for the Senior Center was metal or composite, noting the water quality advantages of metal. Mr. Hoglund said the budgeted amount was for a composite roof and that a metal roof would cost approximately double that amount. Councilmembers discussed the appropriate extent of improvements to City Hall in light of its seismic limitations. Mayor Gere noted that the building needed to be maintained absent a plan to replace it. Mr. Hoglund pointed out that the budget and CFP included $100K for design of structural improvements to City Hall. Ms. Pickett urged spending on concrete improvements rather than more studies. Mr. Johnson noted that the CFP would need to reflect additional funding after 2017 to implement any structural repairs. Mr. Buckenmeyer offered to have staff bring back a proposal for a capital project rather than a study. Anacortes City Council Minutes October 17, 2016 2 Mr. Buckenmeyer presented the proposed budget for Fund 104, Street Maintenance. He pointed out that the $1.1 M budgeted for Professional Services included full funding for the pavement management plan which would focus in 2017 on Commercial Avenue in the CBD and chip seal of Heart Lake Road. In response to a question from Ms. Lovelett, Mr. Hoglund reminded that the budget for Fund 104 assumed Council approval of an increase in vehicle tab fees from $20 to $40 beginning in 2018, which would provide approximately$300K of the budget for the pavement management program. Ms. Lovelett opposed raising the tab fee. Mr. Johnson observed that Mount Vernon was raising its sales tax instead and that some new revenue source would be required. Mr. Archibald spoke in favor of the vehicle tab increase, noting it would amount to less than $2/month/vehicle. Mr. Hoglund displayed and reviewed the corresponding list of projects included in the CFP for Funds 104 (Street Maintenance) and 105 (Street Construction). Turning to Water Fund 401, Mr. Hoglund first addressed budgeted revenues. He reminded Council of the rate recommendation from consultant FCS in August 2015 which included water rate increases phased in over three years. Mr. Hoglund said the first phase had been adopted by Council via Resolution 1928 and advised that Council action would be required to adopt the recommended rates for 2017 and 2018 in order to achieve the revenue projected in the budget for the water utility. Mr. Buckenmeyer presented the proposed budget for the fund, pointing out that capital improvements were reflected in the Other Improvements budget line item, $5M in 2017 and nearly$8M in 2018. Mr. Hoglund displayed and reviewed the corresponding list of water projects included in the CFP. He observed that the roughly$6M increase between the total 2016 and 2017 budgets was virtually all due to $4M of water capital projects and $2M of sewer capital projects. Turning to Sewer Fund 440, Mr. Hoglund displayed and reviewed the sewer projects included in the CFP. He advised that those projects were reflected on the Other Improvements and Machinery& Equipment lines in the proposed budget. Noting the increase in Collection System Maintenance projected in the CFP beginning in 2020, Mr. Buckenmeyer reminded Council that staff had advised during Comprehensive Plan hearings earlier in the summer that a sewer rate increase would likely need to be adopted in 2019 to fund needed capital projects. Turning to Storm Water Fund 445, Mr. Hoglund reminded that Council had not yet acted on staff's recommendation to adopt Ordinance 2979 which would increase storm utility rates from $5/ISU to $10/ISU for all customers. He said that the budgeted revenue projections for Fund 445 assumed a $1.35/ISU increase for 2017 which Council would have to enact in order to fund normal operations; all storm capital projects for 2017 would be funded out of cash reserves but those reserves would be exhausted before 2018 so Council would either need to enact an additional increase the storm rates for 2018 or remove all 2018 storm utility capital projects from the CFP. He advised that the capital projects were reflected on the Capital Outlays line on page 87 of the proposed budget and that no capital projects had been budgeted for 2018, pending a rate adjustment. Mayor Gere and councilmembers discussed the proposed storm rate increase and indicated that their concern was primarily the impact on commercial customers. Mr. Buckenmeyer said staff was working on options for structuring the rates. Mr. Adams said Council was awaiting those recommendations from staff in order to enact an informed and reasonable rate increase. Mr. Hoglund next displayed and reviewed the two sanitation projects included in the CFP. In response to a question from Ms. Lovelett, Mr. Buckenmeyer reported that the drop box program instituted in 2016 was exceeding expectations but that he did not anticipate needing to purchase additional drop boxes in 2017 and that Fund 450 had cash reserves available if that should become necessary. Ms. Lovelett inquired about the apparent increase in payroll costs in the fund for 2017. Administrative Services Director Emily Schuh said the increase was related to the drop box program. Mr. Hoglund concluded by displaying and reviewing the fleet equipment purchases included in the CFP. Mr. Johnson noted the $1.5M for the ladder truck in 2021. Anacortes City Council Minutes October 17, 2016 3 Mayor Gere echoed Mr. Johnson's suggestion that staff prepare a matrix of the assumptions and additional actions or decisions required to either adopt the budget as presented or amend it before adoption, including storm utility rates. Ms. Lovelett requested that the capital projects be reflected in the budget. Ordinance 2990: Amending 2016 Budget Mr. Hoglund explained that this item, proposing a $2.2M transfer from General Fund cash reserves to the Equipment Rental replacement reserves, had been discussed at the September 26, 2016 City Council meeting and that his understanding was that Council wished to consider the transfer in conjunction with the budget review. Mr. Hoglund advised that the proposed 2017/2018 budget did include full annual funding for equipment replacement reserves but did not include any make up funding to replenish the deficit due to prior years of underfunding. He advised that the proposed 2016 budget amendment and cash transfer would bring the equipment replacement reserve up to about 70% of full funding which he felt was sufficient to operate the fund without large budget or cash flow swings for the foreseeable future. Mr. Johnson recalled that the concern expressed at the September meeting was balancing the need to replenish equipment replacement reserves with the need to honor Council's resolution to fund a third fire station. He observed that the fire department budget would be discussed at the next regular City Council meeting. Mr. Hoglund explained that a large fund balance is not always a healthy fund balance. He observed that the fleet replacement liability already existed and was currently unfunded. Ordinance 2990 had been proposed to address that liability. Mr. Hoglund recalled that Council had already been asked twice in 2016 to amend the budget to purchase equipment out of cash reserves because equipment replacement reserves were insufficient. Mr. Archibald supported Ordinance 2990 and argued in favor of filling that existing funding gap. He contrasted taking on a new liability for a new fire station with honoring an existing liability to maintain the fleet the city already owns. Mr. Adams said Anacortes was fortunate to have a health general fund cash reserve and fully supported Ordinance 2990. Ms. Pickett said she also liked the proposed ordinance and that maintaining the equipment replacement reserve would make for a more orderly administration. Mr. Johnson agreed that funding equipment replacement was a decision the city made long ago and needed to honor. Mr. Hoglund responded to councilmember questions about the use of equipment replacement reserves for other purposes in an emergency; any of the enterprise funds including Fund 501 can make short term loans to other funds. Ms. Lovelett reiterated the need for adopting a policy to establish the appropriate uses of cash reserves. Mr. Archibald and Mr. Johnson reported that the Finance Committee was very close to bringing a proposed policy to the full Council for consideration. Mayor Gere concluded that the fund balance policy and Ordinance 2990 would come back before Council for consideration together very soon when all councilmembers were present. There being no further business, at approximately 7:42 p.m. the Anacortes City Council meeting of October 17, 2016 was adjourned. Anacortes City Council Minutes October 17, 2016 4