HomeMy WebLinkAbout2015-10-12 City Council Minutes Approved City Council Study Session Minutes—October 12, 2015
Mayor Laurie Gere called to order the regular Anacortes City Council study session of October 12, 2015
at 6:00 p.m. Councilmembers Eric Johnson, Ryan Walters, Erica Pickett, Liz Lovelett, John Archibald and
Matt Miller were present. Councilmember Brad Adams was absent.
EDASC Presentation by Executive Director John Sternlicht
Mayor Gere introduced recently appointed Economic Development Association of Skagit County
(EDASC) Executive Director John Sternlicht to discuss the agency's strategic plan. Mr. Sternlicht shared
a slide presentation that was added to the Council packet for the evening. He discussed effective
preparation for the process of developing the strategic plan, summarized typical community and
organizational issues and identified stakeholders in the process. Mr. Sternlicht said EDASC would refocus
on recruitment and expansion of existing businesses and described steps that would make that happen.
Mr. Johnson asked Mr. Sternlicht if EDASC could help develop a roadmap for optimizing benefits from the
city's planned fiber optic system. Mr. Sternlicht said fiber would certainly be an economic driver given the
increasing share of distance workers in the workforce and encouraged coordinated planning with other
Skagit County communities engaged in fiber projects. Mayor Gere confirmed that Anacortes would be
participating in the November work sessions for EDASC's strategic plan development.
Washington Park Campground Restroom Remodel Update
Parks and Recreation Director Gary Robinson introduced an update on the Washington Park upper
restroom renovation project and advised that the project would go out to bid the following day.
Washington Park Manager Bob Vaux reviewed the floor plan and explained that the women's half of the
facility would be performed first. He described the security, accessibility, maintenance and conservation
improvements included in the design. Councilmembers discussed with Mr. Vaux how the next day's bid
results would inform future completion of the men's half of the building.
Council Review of 2016 Budget- Public Works
Mayor Gere reassembled the Council at the round table to review the Public Works department budget
with Finance Director Steve Hoglund, Public Works Director Fred Buckenmeyer and his staff including
Water Treatment Plant Manager Jeff Marrs, Assistant Public Works Director Matt Reynolds, Operations
Manager Sandi Andersen and Resource Conservation Manager Russ Pittis. Mr. Buckenmeyer observed
that the Public Works budget was generally balanced without calling upon cash reserves.
Mr. Hoglund explained that yellow highlighting indicated line items for one-time expenses that staff
proposed to fund from cash reserves.
Mr. Buckenmeyer and his staff walked through the budgets for General Fund departments 711, 712, 713,
and 714, Water Fund 401, Sewer Fund 440, Storm Drain Fund 445, Sanitation Fund 450, and Equipment
Rental Fund 501, highlighting capital projects and other line items that had been cut from the proposed
budget in order to balance it against projected revenues. Staff responded to councilmember questions
about downtown beautification, funding for the new Resource Conservation department, rolling of unspent
street maintenance funds from the 2015 budget into the 2016 budget, ADA compliance for street projects,
revenue adjustments to reflect the water utility rates adopted by Council on October 5, 2015, timing of the
3MG water tank rehabilitation project and funding for that project from water rate increases and potentially
from a SDWRF loan, upcoming requirements to move toward alternative fuel vehicles in the city fleet,
public desire for and software constraints inhibiting electronic utility billing, alternative means of funding
the Equipment Rental fund or reducing vehicle costs, and the appropriate funding for outside legal
expenses incurred for utility matters.
Mr. Buckenmeyer recommended adding a number of Water Fund expenditures back into the budget and
funding them out of cash reserves including Lines 1606, 1669, 1673, 1696 and 1697. Councilmembers
asked if a sewer rate increase was being proposed. Mr. Buckenmeyer said that staff was recommending
holding the rates constant but that the recently adopted utility financial policies could require new rates to
Anacortes City Council Study Session Minutes October 12, 2015 1
build reserves in the Sewer fund. Mr. Buckenmeyer recommended adding the $1 M Wastewater
Treatment Plant incinerator offgas scrubbing system back into the budget and funding it out of Sewer
Fund cash reserves. Councilmembers disagreed as to whether or not the proposed sea level rise study
(Line 1913)should be added back into the budget. Mr. Hoglund said that Storm Drain Fund 445 was the
only utility fund that was proposed to pull from cash reserves and that it had slightly over$800K of
operating reserves and $400K of capital reserves. Mr. Buckenmeyer advised that the Storm Drain fund
would need a rate increase in the coming year. He recommended adding Line 2124 for storm pond/vault
restoration back into the budget and funding it from capital reserves.
Mr. Buckenmeyer said he would "make those changes" and bring the public works department budget
back to Council. Mr. Johnson requested a list of the items that needed to be added back into the budget
and funded out of cash reserves or other means. Mayor Gere indicated that Mr. Buckenmeyer would
prepare a recommendation based on the list of unfunded line items appearing on pages 93-94 of the
budget book distributed to Council on October 5.
There being no further business, at approximately 8:30 p.m. the Anacortes City Council study session of
October 12, 2015 was adjourned.
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