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HomeMy WebLinkAbout2015-10-05 City Council Minutes Approved City Council Minutes—October 5, 2015 Mayor Laurie Gere called to order the regular Anacortes City Council meeting of October 5, 2015 at 6:00 p.m. Councilmembers Eric Johnson, Ryan Walters, Erica Pickett, Brad Adams, Liz Lovelett, John Archibald and Matt Miller were present. The assembly joined in the Pledge of Allegiance. Citizen Hearings Martha Hall, 2617 16th Street, thanked Council for agreeing at its September 28, 2015 meeting to address further changes to AMC Title 6 by June 2016. Ms. Hall suggested setting dates for two public hearings early because so many people are affected by this section of the code. She said she had pursued the topic through committee as suggested, beginning with the Finance Committee. Ms. Hall requested further direction on the committee process. She asked for a timetable of when the topic would be addressed in committee, including at the Public Safety Committee and the Finance Committee. Mayor/Council Communication and Committee Reports Mayor's 2016 Budget Message: Mayor Gere read her 2016 budget message [included in full at the conclusion of these minutes]. The mayor advised that the proposed budget would be posted on the City of Anacortes website at the conclusion of the meeting. Mr. Miller reported from the Personnel Committee which met on September 22, 2015 and discussed staffing changes in the Mayor's proposed 2016 budget. Mr. Miller said the proposals seemed reasonable. Mr. Walters reported from the Planning Committee which met the prior week and began working through the KT Analysis regarding retail business. He said the committee would meet every two weeks through the end of the year to continue that work. Mr. Johnson reported from the exit interview with the State Auditors earlier in the day. He said both the fiscal year 2014 accountability and financial statement audits received clean reports. Ms. Pickett thanked Andy Stewart of Emerald Marine for organizing Friday's tour of marine businesses for City Council, Planning Commission and the public. She thanked the hosts at the facilities toured which included Betts Marine, Canflex, Pacific Fabricating, and North Harbor Diesel. Mr. Walters reported from the Finance Committee which met the prior week and discussed utility fees and property taxes over time, reviewed the water rate documents which would be addressed later on the agenda, and discussed animal control funding decisions with a member of the public who was in attendance. Consent Agenda Ms. Lovelett removed Item E from the Consent Agenda: Resolution 1930: Designating Quality Controls Corporation as Sole Source for SCADA/Telemetry at Water Treatment Plant. Mr. Johnson moved, seconded by Ms. Lovelett, to approve the following Consent Agenda items. Vote: Ayes— Pickett, Adams, Lovelett, Archibald, Miller, Johnson and Walters. Motion carried. a. Minutes of September 8, 2015, September 14, 2015, September 21, 2015, September 25, 2015 and September 28, 2015 b. Approval of Claims in the amount of: $585,243.30 c. Accept as Complete: 2014 Trip Hazard Project (14-012-TRN-001) d. Contract Award: Pump Tech, Inc. - Furnish Vaughan Pumps @ WTP Intake Station f. Contract Award: Quality Controls- Replace Wastewater Treatment Plant Radio Telemetry, Phase A g. Street Fair Application: Anacortes High School Homecoming Parade Anacortes City Council Minutes October 5, 2015 1 The following vouchers/checks were approved for payment: Voucher(check) numbers: 77738 through 77899, total $380,082.60 Payroll for October 5, 2015 in the total amount of$879,415.88: Check Numbers 40854 through 40895 in the total amount of$38,059.85 Direct Deposit Numbers from 60696 through 60897 in the total amount of$504,014.11 EFT Numbers from 1865 through 1870 in the total amount of$337,341.92 Item E, Resolution 1930: Designating Quality Controls Corporation as Sole Source for SCADA/Telemetry at Water Treatment Plant Ms. Lovelett asked that resolutions not be placed on the Consent Agenda. Public Works Director Fred Buckenmeyer summarized QCC's prior and ongoing work at the Water Treatment Plant and recommended designating QCC as a sole source vendor for SCADA/Telemetry at the plant. Mr. Walters disagreed with Ms. Lovelett and said he felt it was appropriate to place the resolution on the Consent Agenda along with the corresponding contract. Ms. Lovelett moved, seconded by Mr. Archibald, to approve Resolution 1930. Vote: Ayes—Pickett, Adams, Lovelett, Archibald, Miller, Johnson and Walters. Motion carried. UNFINISHED BUSINESS Continuation of Appeal to Haddon Road Short Plat, SPL-2014-0003 Assistant City Attorney Darcy Swetnam addressed the procedures for this portion of the agenda. She reminded that Council accepted documents into the record, took testimony and then closed the public hearing at its September 8, 2015 meeting so no new documents could be added to the record but councilmembers were free to question staff or parties of record for clarification. Ms. Swetnam reminded councilmembers of the Standard of Review that was laid out in the staff report dated August 25, 2015. She added that if Council were considering questions of law, for instance if it wanted a certain section of code to be interpreted in a certain way, it was free to clarify the code without deference to the Administrator. Ms. Swetnam outlined some of Council's options including denying all the appeals; granting appeals and dismissing the application, with or without prejudice; remanding the project to staff with direction to consider it under a PUD process; or, in order to clarify legal standards, remanding the project to staff with direction to use those clarifications to process the application. She said Council action should come in the form of a direction to staff to prepare Findings and Fact and Conclusions of Law in accordance with Council's decision. Ms. Swetnam asked Councilmembers to disclose any ex parte communication they might have had on this matter since disclosures were made at the September 8, 2015 hearing. Mr. Johnson said he was not present for the September 8, 2015 hearing but that he had had no ex parte communication of any kind on the matter. City Attorney Brad Furlong confirmed with Mr. Johnson that he had in fact reviewed the entire proceedings of the September 8, 2015 hearing. Mr. Miller, who lives on Haddon Road, said over the weekend he had been asked by a neighbor about the project but had told the neighbor that it was a quasi-judicial matter so he could not discuss it. He said that would not impact his judgement on the matter. Planning Director Don Measamer then summarized the project, referring to his slide presentation from the September 8, 2015 hearing which had been included in the record as Exhibit H. Mayor Gere asked each councilmember to weigh in before proceeding with deliberation on the appeals. She reminded that councilmembers were allowed to question staff or any party of record for clarification. Anacortes City Council Minutes October 5, 2015 2 Mr. Miller said he had thoroughly read the entire record and the relevant code. He characterized the decision as whether Council believed the Planning Director interpreted the codes in accordance with the law in the best interest of the city by issuing the permit on July 23, 2015. Mr. Miller said that substantial judicial deference was appropriate to the planning department expertise and that the Planning Director's finding was supported by fact and substantial evidence. Mr. Archibald said the creativity brush was spread too far for the project and that the Administrator's decision did not reflect the intent of the code for lot shapes. He said the project should have been treated as a PUD. Ms. Lovelett cited several Comprehensive Plan goals and AMC 17.70.360 regarding subdividing wetlands. She opposed interpreting the code as allowing lots of the configuration proposed and said lots must be outside the wetland and its buffer and meet the minimum lot size requirements. Ms. Lovelett also expressed concern about the geotechnical reports not addressing soil under wet conditions. Mr. Adams characterized the Council's decision as limited to supporting or denying the appeals of the Administrator's decision on the correct interpretation of the code. He observed that the codes are not always perfect but that evidence needed to be weighed against the code as written. Ms. Pickett called the project a good solution and noted that staff had obtained third party review of the geotechnical reports. She said Planning Department staff looked over the possibilities and felt this was the best compromise for the neighborhood. Ms. Pickett agreed that the lot shapes were unusual but was confident that the City Attorney had found that the Administrator's interpretation had been upheld in court before. Mr. Walters stated that the goals and policies of the Comprehensive Plan do not govern land use applications, City code does. He said the shape of the lots as proposed was not fundamentally prevented by city code but that the lot configuration was precluded by AMC 17.70.360 which was erroneously interpreted as a matter of law. He quoted that section and said all three criteria needed to be met by at least a portion of each lot. Mr. Walters said staff may have interpreted that differently in the past but that Council was not bound by clearly erroneous past interpretations. Mr. Johnson asked Mr. Measamer about several of the precedents cited in the Administrator's decision. He then inquired about Appellant O'Hearn's argument that Carlson v. Town of Beaux Arts Village and Friends of Cedar Park Neighborhood v. Seattle did not apply to this project. Ms. Swetnam clarified that those were cases in which proponents had presented oddly shaped lots including flag lots and the projects had been denied on the basis of the oddly shaped lot but the Administrator's denial was found to be arbitrary and capricious because the code didn't support denial. She said a project cannot be denied purely due to oddly shaped lots, only if there is a strong basis in the code for denial. Mr. Johnson asked about the accessibility of the one foot strip of land. Ms. Swetnam said she was not aware of a clear legal standard on what accessible and contiguous mean. Mr. Walters established with Mr. Measamer that the western portion of each of Lots 1 through 4, without their flag portions, was smaller than 15,000 SF. Mayor Gere then invited councilmember discussion. Mr. Miller asked Mr. Walters if all the nine proposed lots were less than 15,000 SF without the flag portion in the wetland or its buffer. Mr. Walters responded that each and every lot has to meet all the criteria of AMC 17.70.360 or the project fails. Ms. Pickett asked the legal team who had opined that the "and"was read in a different way. Ms. Swetnam said that's how it had historically been interpreted but that Council could certainly clarify how it should be interpreted. Anacortes City Council Minutes October 5, 2015 3 Mr. Walters moved, seconded by Ms. Lovelett, to vacate the Administrator's approval, to clarify that the staff interpretation of AMC 17.70.360(B)was an erroneous interpretation of the law and that that section is to be interpreted with the conjunctive "and"such that at least a portion of each lot meets all three conditions ("accessible and contiguous," "located outside of the wetland and its buffer," and "meets the minimum lot size requirements"), to remand the application to staff for further proceedings consistent with this opinion, which might include reconfiguration of the lots consistent with this decision or withdrawal of the application and resubmission, and that if there were to be withdrawal of the application and resubmission within twelve months that the city allow for application fees for this application to be used toward that new application. Mr. Furlong clarified that the intent of the motion was that if the applicant chose to convert to a PUD, the fees paid to date would apply towards the fees required for a PUD application. Mr. Walters concurred. Vote: Ayes—Lovelett, Archibald, Johnson and Walters. Nays-Adams, Miller and Pickett. Motion carried. At approximately 7:35 p.m. Mayor Gere called a three minute break. At approximately 7:39 p.m. the mayor called the meeting back to order. Ordinance 2961: Amending AMC Chapter 13.20, Water System Resolution 1928: Establishing Fees for the Water Utility Resolution 1929: Adopting Financial Policies for the City Utilities Senior Accountant Philip Steffen presented an ordinance to update the water code as well as resolutions to update the water fee schedule and utility financial policies. He reported that utility bills had been updated to distinguish between the base fee and consumption portion of the water charges. Mr. Steffen summarized Ordinance 2961 which would update the language of AMC 13.20 for correctness and consistency, remove water rates from the code and add language regarding liens on overdue accounts. He then summarized Resolution 1928 which would adopt new water rates per the recommendation by water rate consultant FCS Group (Scenario B) and Resolution 1929 which would adopt financial policies recommended by FCS Group for all city utilities as a supplement to the fund balance policy currently under development. Mr. Miller expressed support for all three documents but asked if the new rates could be made effective October 1 as stated in Resolution 1928. Mr. Steffen said yes, that the rates could apply to water service for the entire month of October which would be billed in November. Councilmembers discussed whether they wished to address water conservation efforts in the proposed ordinance and whether tiered water rates should be considered. Ms. Pickett recalled that FCS Group had recommended against tiered rates at this time. Mr. Walters said that conservation measures should be specified in the Water System Plan, not the Anacortes Municipal Code. Ms. Pickett moved, seconded by Mr. Miller, to adopt Ordinance 2961 amending Chapter 13.20 of the Anacortes Municipal Code. Mayor Gere invited members of the public to comment on the proposed legislation. No one present wished to address the Council. Mr. Johnson asked if the motion included adopting Resolution 1928 establishing fees for the water utility and Resolution 1929 adopting financial policies for the city utilities as well. Ms. Pickett concurred and Mr. Miller seconded the addition. Mr. Miller asked staff to report back to Council on the revenue results of the rate change more often than once a year. Ms. Lovelett urged adequate staffing to complete capital projects funded by the new rates. Mr. Adams urged an insert in the next utility bill to explain the recent rate increases to the public. Mayor Gere distributed copies of an insert that had already been drafted and would be included in the October utility bills. Anacortes City Council Minutes October 5, 2015 4 Vote on approving Ordinance 2961, Resolution 1928 and Resolution 1929: Ayes— Lovelett, Archibald, Miller, Johnson, Walters, Pickett and Adams. Motion carried. Mr. Walters said the Finance Committee had recently reviewed a summary of taxes and fees over time for city residents including property taxes. Mr. Steffen displayed and handed out copies of that summary. He explained that while utility rates have increased since 2006, property taxes have actually decreased such that the total cost per average household has decreased 20% since 2006. Wilhelmus Houppermans, 3412 K Avenue, said he bought his house in 2006 at the peak of the market and argued that the change in the total tax and fee burden would be different if a different starting year had been selected. Mr. Walters disagreed, saying that the property tax is budget based. NEW BUSINESS Public Hearing on 2016 Budgeted Revenue Sources, including Proposed Property Tax Increase Finance Director Steve Hoglund explained that state law requires two public hearings on the budget, one on the revenue sources and one on the overall budget. Mr. Hoglund explained the 1% property tax increase cap and the effect of the Implicit Price Deflator(IPD)which was only 0.25. He presented a summary of the city's 2016 projected revenue in each account and explained the trends and models used to develop the projections. Mr. Hoglund advised that in order to take a 1% property tax increase for 2016 Council would need to adopt a substantial need resolution. He provided several examples of increased costs and decreased revenue that demonstrate substantial need. Mr. Hoglund pointed out that property tax is the only revenue stream that the city has any control over and said it's prudent to take the full 1%. He advised that historically Council had done so. Councilmembers discussed that even with a 1% annual property tax increase the city loses ground against inflation nearly every year. Mayor Gere invited members of the public to comment. Martha Hall, 2617 16th Street, said she supports taxes to make the city a better place to live so long as they are well spent. Ms. Hall said another revenue source to support animal control would be fees for licensing animals and suggested that licensing cats could generate additional revenue. No one else present wished to address Council. Ms. Lovelett asked if sales tax from large projects such as the new Anacortes High School was reflected in the revenue projections. Mr. Hoglund said it was not because the timing of the building was not yet set and added that state revenue sharing for retail marijuana taxes would likely add about$8,200 to the revenue projections. There being no further business, at approximately 8:15 p.m. the Anacortes City Council meeting of October 5, 2015 was adjourned. ************************************************************************************************************************ MAYOR'S BUDGET MESSAGE October 5, 2015 Honorable City Council and Members of our Community: I am pleased to submit a preliminary budget for your review, comment, and action. The proposed 2016 budget of $51,435,282 increases our level of service and adds about $1.7 million from the current adjusted 2015 budget of $49,672,854 representing a 3.5% increase. Anacortes City Council Minutes October 5, 2015 5 $1,017,004 is from the cost of salary and benefit increases, the majority of which are contractual obligations. The governmental operating fund budget totals $25,274,555 and receives 74% of its funding sources from taxes that can only grow in a strong economy. General taxes fund the operation of police, fire, ambulance service, administrative services, municipal court, legal, planning, community, and economic development, parks and recreation, library, museum and street maintenance. The City adopts a complex and balanced budget each year to serve our 16,380 residents, who expect a broad range of services. Accounts are organized by fund; each account has its own separate cash, investments, revenue, and expenditures. My proposed budget supports 24 funds, representing 10 departments. Year-to-date, building activity has outpaced the prior year, and sales tax revenue has increased by 5%. This is our third consecutive year of revenue growth. The sales tax increases were primarily from vehicle sales, marine trades and hospitality businesses. Utility tax revenue has decreased due to reductions in consumption of natural gas and electricity. Revenues are projected to increase slightly in the coming year, reflecting continued strong sales tax, and a normalization of utility tax. I have worked closely with staff to develop a budget with a high level of service to the community that operates within the parameters of Initiative 747, which limits annual property tax increases to 1%, or the Implicit Price Deflator (IPD), whichever is less. The proposed budget utilizes a 1% property tax increase in revenue projections, however, the IPD published on September 28, 2015, was less than 1%. A resolution illustrating substantial need will need to be adopted by City Council to increase property taxes by the full 1%. Anacortes remains one of the lowest taxing cities in Skagit County with a 2015 general millage of $1.76 per $1000 of assessed value, generating a 2015 property tax levy of $4,642,472. Property taxes are the City's single largest governmental revenue stream. My proposed budget retains healthy cash reserves, with over $8.5 million in the General Fund alone. Revenues have exceeded expenditures every year since 2009. The proposed budget uses General Fund reserves to complete one-time projects and deferred infrastructure improvements. EXECUTIVE/LEGISLATIVE Anacortes is well served with engaged citizens, a committed forward thinking city council, and dedicated professional staff. To enhance communication with our citizens, I have included some necessary staffing adjustments. My proposed budget includes a 1.0 FTE for a full-time communications specialist and .25 FTE increase in Channel 10 support to enhance our public outreach. Consistent with my focus on improved communication, the legislative budget has increased funding for the A Town is Our Town publication. I have also increased the legislative budget for training and travel. FINANCE The finance department has a dual role, providing services as the City Clerk's office, and as the City treasurer's office. As such, the finance department provides the accounting, budgeting, reporting, accounts payable processing, accounts receivable processing, and payroll functions for all departments city wide. Finance also processes utility billing for all residential, commercial, industrial, and wholesale utility customers. Finance is also an award-winning department in providing the City's treasury function, having its Investment Policy certified by the Anacortes City Council Minutes October 5, 2015 6 Washington Public Treasurer's Association in April of this year. In this capacity, the finance department manages the banking of over 3 million dollars in operating cash, and over 39 million dollars in investments. As the Clerk's office, the finance department prepares all City Council meeting agendas, records and publishes the Council minutes, and publishes and records all resolutions and ordinances adopted by the City Council. In the coming year the finance department will continue to seek improvements and efficiencies in processes in an effort to reduce the cost of financial functions to the City. Information Technology: The information technology (IT) department supports the City's computing requirements. We have budgeted to replace 14 desktop computers that have reached the end of their useful lives. IT will build the computers in house at a substantial cost savings. The budget also includes funding to replace a server and two switches at the library in anticipation of a system conversion. In 2016, IT will lead a research effort to replace the City's aging phone system with a Voice Over Internet Protocol phone system, research an Electronic Records Management Solution, and review a new City website that will be more user friendly and resourceful. PUBLIC SAFETY Police: Our police department takes pride in robust crime prevention efforts and high clearance rates of crimes committed in the community. Additional resources are needed to review and improve performance and provide the level of service expected by the community. The police department's 2016 budget was developed with the following goals: • Preventing and responding to emergencies • Preventing and responding to crime • Increasing community readiness and resilience • Maintaining and enhancing publicly-owned assets Since 2006 the department has grown by two police officers, and the size of the fleet was not increased. This year a police vehicle will be added to the fleet to respond to emergency calls efficiently and safely. 2016 will be the first complete year for the school resource officer (SRO) and K9 officer. The SRO position is funded jointly with the Anacortes School District. The SRO will work directly with students in the high school and middle school to provide a positive law enforcement presence on campus. During the summer months the officer will be deployed in City parks and forestlands. In January, a narcotics detection K9 team will be deployed. The dog was purchased with private donations and impact funds from the Swinomish Tribal Community. A patrol officer has been assigned to be the dog handler. The public safety building is entering its 16th year of service, and is in need of exterior painting, new flooring, and other minor repairs due to heavy use. The police department is also home to the City's Emergency Coordination Center (ECC), which needs some technical updates. Funding is included for updating our radio system. Staff is actively seeking grant funding to offset the cost. Also included is pass through of public safety sales tax for the Skagit County. Anacortes City Council Minutes October 5, 2015 7 Fire/Medic: Our firefighter/paramedics and EMTs are cross-trained to respond to both fire and medical emergencies. Between 8am-8pm six firefighters are on duty; two at each fire station. During the evening hours (8pm-8am) four firefighters are on duty; two at the main station and two at the Skyline fire station. One additional position is proposed in the fire/medic budget, along with a realignment of two FTE schedules to better meet service delivery needs. The schedule change is expected to provide savings in overtime costs to offset the expense of the new FTE. The City contracts with Skagit County to provide Advanced Life Support ambulance service on Fidalgo and Guemes islands, and provides backup for other service providers in Skagit County. In addition to funding from the Skagit County EMS Levy, the City receives revenue for each patient transported, as well as local sales and property taxes. As a result of in-house billing for EMS charges, the City has more accurate accounting of uncollectible accounts to be written off as bad debt. The fire chief, public safety committee and I are analyzing recommendations from the Washington Survey and Rating Bureau, and Fire/EMS Master Plan reports to determine short and long-term levels of service in conjunction with the City's Comprehensive Plan update. ADMINISTRATIVE SERVICES Administrative services consolidates human resources, risk management, public defender's office, and municipal court. Human Resources: Our human resources department focuses on prevention and training as a risk management strategy and a way to reduce liability. Anacortes is recognized as a Well City by the Association of Washington Cities. This designation provides a 2% discount on medical premiums, which results in significant savings. The City is implementing the Affordable Care Act, and continues to communicate change in health care offerings. We are committed to providing a safe work environment. The safety committee is actively engaged in reducing workplace injuries. Our projected L&I experience factor for 2016 is .7392 (26% less than Labor and Industries expects of cities of similar size). Our focus on safety and prevention provides cost savings to the City and employees in premiums, and more importantly, helps reduce injuries. We are transitioning to an online database to track MSDS (material safety data sheets) for hazardous materials, and to meet to labeling requirements of chemical containers. Contract negotiations will begin in mid-2016 for successor Teamster Local 231 bargaining agreement. We are in the 2nd year of a three-year contract with IAFF 1531 and the Fraternal Order of Police (commissioned and noncommissioned.) Public Defense: The City employs a full-time public defender and legal assistant to meet the state-mandated standards for delivery of public defense services. Our public defender attends daily in-custody hearings ensuring prompt public defense for indigent clients. Funding is allocated to determine client's eligibility for public defense. Anacortes City Council Minutes October 5, 2015 8 Municipal Court: The City contracts with Skagit County District Court for judicial services. The budget includes a 19% increase in District Court charges for providing court services to Anacortes Municipal Court. $26,000 has been budgeted for courtroom improvements. This is being funded through a restricted Jury Court Trial fund. The municipal court's website is updated and the City is seeing a marked increase in fines being paid online. LEGAL Bringing a full-time city attorney in-house has provided more accessible legal services for all departments and City Council. Funding has been reduced for outside counsel, with a stronger focus on training and building legal resources. We will continue to contract for prosecutor services. The 2016 budget includes funding for extensive updates to the Municipal Code as a result of the Comprehensive Plan process. A public records committee with representatives from each city department was formed in 2015 to improve our file management and public records request procedures. This group will be led by the Legal Assistant/Public Records Coordinator, who, in addition to assisting the prosecutor and city attorney, also responds to public disclosure requests for departments other than Police Records, and coordinates claims against the City. PLANNING, COMMUNITY & ECONOMIC DEVELOPMENT & BUILDING Our planning, community, & economic development department has several projects continuing in 2016. Monies are allocated for a consulting firm to assist in the preparation and publication of the state-mandated 2016 Comprehensive Plan periodic update to be completed by June 2016. My proposed budget also includes a .50 FTE associate planner to assist with the Economic Development and Strategic Planning. The building department's budget is relatively unchanged from the last several years; however, permit activity has increased. As of September 19, 2015, 68 single-family residence permits have been issued, compared to 76 in 2014. Overall permits totaled 395 for 2015 compared to 358 for 2014. There has been a significant increase in single-family alteration, repair and remodel permits, with 107 in 2015 compared to 83 in 2014. In 2016, the department will recommend adoption of the 2015 International Codes and an alignment of our fee schedule with other local jurisdictions. The department continues to scan and archive old building files to reduce physical filing space and assist in preserving records and facilitate/streamline public access. PARKS AND RECREATION Our parks and recreation department provides recreational programs for community members of all ages. The staff maintains 19 parks including Washington Park, the City cemetery, and 2800 acres of City forestlands, and manages the Depot Arts and Community Center and Plaza, Anacortes Senior Activity Center, and the Heart of Anacortes. The 2016 budget includes funding for several projects that have community support including a new restroom and spray pad at Storvik Park, continued remodeling to the upper restroom at Washington Park, work on the Tommy Thompson Trail trailheads, continuing work at Volunteer Park, and additional improvements to the Depot. Anacortes City Council Minutes October 5, 2015 9 This year's budget also includes funding for a .75 FTE position that will devote significant time towards beautification efforts at City facilities such as the Depot, library, fire stations, police station, etc. LIBRARY The library is a vital center of our community. Library resources and programs provide information, education, and entertainment to patrons of all ages. We are the only library in Skagit County open on Sundays. Many library staff are certified passport acceptance agents who process an average of 49 passport applications per month. We are the only passport agency north of Everett with Saturday hours. I am recommending an increase in the library's materials budget to align with other libraries of similar size in the state. Revenue from passport processing fees help to support the increase in the library materials budget. The library's seven-year contract with Integrated Library System (ILS) will expire in January 2017. The 2016 budget reflects a one-time expense of migrating data to a new ILS. The library will complete a strategic plan in 2016, getting input from staff, Library Board of Directors, and other stakeholders such as the Friends of the Library and the Anacortes Library Foundation, community leaders, and the community. MUSEUM The museum serves many constituents, including citizens, schools, the Anacortes Historic Preservation Board, council members, city departments, media, prospective business owners, educators, researchers, State agencies, tribes, the Port and other museums. Anacortes celebrates its 125th anniversary in 2016. In honor of this milestone, the museum is developing an exhibit on the City's history and accomplishments that will open in the spring. The museum will be hosting a maritime poetry event in fall 2016, and will be working with volunteers who hope to get the Tommy Thompson Train running again. We continue to expand our online museum resources. Museum staff are partnering with Anacortes High School, its students, and community videographers to host digitalized yearbooks, and create historical documentaries and other short videos to embed on the museum website. New exhibits and signage and exterior renovation at the Maritime Heritage Center has led to dramatically increased visitation in 2015. The museum will continue to maintain our facilities, improve signage and promote Anacortes waterfront history. PUBLIC WORKS Public works is the largest department in the City of Anacortes. They are responsible for managing construction of streets and sidewalks, water lines, sewer lines and storm sewer lines; the production and distribution of water to the region; maintenance of our streets, sidewalks and street signs; maintenance of our storm water and sewer system; purchasing and Anacortes City Council Minutes October 5, 2015 10 maintaining the city's vehicle and equipment fleet; maintenance, repair and construction of city-owned buildings; resource conservation, and managing all activities within the public right-of-way ranging from street vacations to parades. My 2016 budget includes several capital improvement projects that will improve our aging infrastructure. Engineering: Workload related to private development has increased dramatically for engineering. In the past 18 months staff reviewed 182 development review projects and 585 development inspections." This equates to 0.84 FTE devoted to development review with no additional staff. We will continue to evaluate our ability to complete capital improvement projects, and if increased workload continues, additional staffing may be necessary. Streets: The street maintenance budget contains revenue from the newly created Transportation Benefit District. My budget includes an enhanced street maintenance program that includes a combination of overlays and slurry seal projects. There will also be a focus on sidewalk rehabilitation. The legislature allocated the City of Anacortes funding to complete several portions of the Guemes Channel Trail. The funding will be awarded over several years; this will allow the city to plan construction of the trail in segments. Water Treatment, Transmission, and Distribution: The rehabilitation of the 3 million gallon tank located on Whistle Lake Road will be addressed with a budget adjustment if City Council approves a retail water rate increase at tonight's meeting. Estimated cost for this project is $4,000,000. I have included 2.0 FTE's to meet Department of Health recommendations that a minimum of two staff be on shift at the water treatment plant. Currently, there is one operator on shift during the evening. Wastewater Treatment, Collection, and Conveyance: Recent changes instituted by the Environmental Protection Agency require that we upgrade the exhaust scrubber system on the incinerator at the wastewater plant. Estimated cost for the upgrade is $1 million dollars. Improvements will be made to administration building restrooms and meeting spaces. Storm Drainage: The latest phase of our Department of Ecology National Pollution Discharge Permit is the implementation of Low Impact Development amendments to our storm water codes. The major project in 2016 will be upgrading our conveyance system. Solid Waste: Anacortes City Council Minutes October 5, 2015 11 The roll on roll drop box collection program will be fully implemented in 2016. The City began providing this value-added service in October 2015. Council approved 1.0 FTE to split between solid waste and storm drain as part of the drop box program. Equipment Rental and Replacement (ERR): The ERR fund maintains the City's fleet and equipment requirements. ERR charges each department receiving services. The charges are calculated based on the service order costs and the anticipated cost to replace the equipment in the future. Facilities: A comprehensive inventory of all our building maintenance and repair needs will be completed in 2016. This is reflective of my emphasis on improving our facilities. Resource Conservation: The resource conservation division has several areas of focus, including overall citywide energy reduction, and an effort to encourage downtown commercial customers to recycle. The resource conservation manager is leading our efforts in the Georgetown University Energy prize. Anacortes is one of 50 cities nationwide selected to participate for a possible $5 million dollar award. Funding for water conservation measures with an introduction of a water efficient appliance rebate program is included in my budget. Conclusion: As presented, my budget continues our commitment to balance fiscal responsibility and meet community priorities. It reflects my expectation to maintain and improve our infrastructure while continuing to provide excellent customer service and communication for our community. We will complete our Comprehensive Plan Update in June 2016, and have started preparation of our strategic plan (action steps) for economic development to support the long-term viability of Anacortes. I believe 2016 will be a year of growth and continued focus on laying the foundation for the next 20 years. I look forward to your input on the 2016 budget. Respectfully, Laurie Gere Mayor Anacortes City Council Minutes October 5, 2015 12