HomeMy WebLinkAbout2014-04-14 City Council Minutes Approved City Council Study Session Minutes—April 14, 2014
At approximately 7:02 p.m. Mayor Laurie Gere called the regularly scheduled Anacortes City Council
study session of April 14, 2014 to order. Roll call found present City Councilmembers Eric Johnson, Ryan
Walters, Erica Pickett, Brad Adams, Liz Lovelett, John Archibald and Matt Miller.
Shannon Point Rip Rap Removal Proposal
Parks and Recreation Director Gary Robinson introduced Lisa Kaufman, Nearshore Program Manager for
the Northwest Straits Foundation, and Jim Johannessen of Coastal Geologic Services. Mr. Robinson
referenced the extensive packet materials for the proposed Shannon Point Shoreline Restoration Project
and demonstrated the project vicinity on the overhead. He listed benefits of the project including improved
habitat, improved beach with human access, and salvage of useful rock. He said concerns about the
project include what the impact might be on the eventual routing of the Guemes Channel Trail. Mr.
Robinson explained how the benefits outweigh the potential downsides and recommended approval. He
said the proponent would need permission from the City as a landowner.
Lisa Kaufman, Northwest Straits Foundation, 1155 North State Street, #402 in Bellingham, recognized
Paul Dinnel and Erica Pickett from the Skagit County Marine Resources Committee. She provided
background on the Foundation and the Northwest Straits Initiative for marine resources and habitat
restoration. Ms. Kaufman then outlined the proposed Shannon Point Rip Rap Removal and Shoreline
Restoration project including its objectives of restoring habitat forming processes by improving sediment
transport and increasing the resiliency of the shoreline to adapt to impacts of sea level rise. She reported
on the project's feasibility study, the three alternatives identified during the feasibility study, and why the
preferred alternative—removal of all rip rap—was selected. Ms. Kaufman provided details on how the
project would improve habitat for forage fish which feed salmon, marine birds and marine mammals. She
summarized the property ownership in the area including City of Anacortes, Western Washington
University and Washington State Dept. of Natural Resources.
Jim Johannessen, Coastal Geologic Services, 1711 Ellis Street, #103 in Bellingham, then summarized
the geology of the site, slope stability in the area, potential erosion rates, and the findings of the feasibility
study. He referenced prior studies of the geology in the area as well as additional test holes. Mr.
Johannessen explained why the south end of the project area would be subject to much less bluff erosion
than the northern and central sections due to the wave attack patterns along the coast. He noted that the
developed Sunset Cove properties are set back approximately 70 feet from the bluff crest, far greater
than the minimum setback of 25 feet recommended by Associated Earth Sciences, Inc. in 1992 when the
development was platted, and concluded that the proposed rip rap removal would not further destabilize
the bank near the houses in the area. Mr. Johannessen noted that there was a potentially easy barge
access site to allow removal and reuse of the rip rap.
Ms. Kaufman then reviewed the funding for construction which would come primarily from Department of
Natural Resources Aquatic Restoration Program funds with a small amount of Coastal Protection Fund
money from Department of Ecology. She said that the project would need to be completed between July
2014 and January 2015 to meet the requirements of the fish window and the funding cycles. She then
shared the proposed schedule including bidding the project in July and constructing in August and
September of 2014. Ms. Kaufman concluded with a review of the monitoring program being developed to
determine the success of the project during and after construction.
Mr. Robinson addressed councilmember questions about public access to the project site and said the
intent was to enhance the existing public access. He said he would bring the permit application back to
Council for approval at the next regular meeting.
At approximately 7:40 p.m. Mayor Gere called a brief recess. At approximately 7:50 p.m. Mayor Gere
called the meeting back to order.
First Quarter Finance Update
Finance Director Steve Hoglund presented an update on the City's financial position at the close of the
first quarter. He summarized General fund revenues by revenue stream and concluded that at 25%
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through the year, overall General Fund revenue was at just over 28% of budget. He explained the line
items that are not evenly distributed throughout the year and noted that the property tax payment for the
first half of 2014 had not yet been received from Skagit County. Mr. Hoglund next summarized general
fund expenditures by department and explained the few line items disproportionally large for the time of
year. Mr. Hoglund addressed questions from councilmembers about the apparent overruns in the
Legislative and Executive departments. He then illustrated sales tax revenues year to date compared to
prior year which continue to show improvement, real estate excise tax (REET) revenue which is already
at 45% of budget for the year, and impact fee revenue which is already at 62% of budget at the close of
the first quarter. Mr. Hoglund then reviewed revenues and expenditures in the other funds and explained
the uneven distribution of some of those streams during the course of the year. He said there were no
unexpected anomalies. Mr. Hoglund addressed questions from councilmembers.
Mr. Hoglund then presented a summary of budget adjustments that he would bring back to Council for
action in the form of a budget amendment on the Consent Agenda at the next regular City Council
meeting. He explained each of the line items and addressed questions from Councilmembers. Mr.
Walters requested fund balance amounts for each amendment that draws on cash from fund balance.
Quimper Mercantile Co. Site Visit
Ms. Lovelett reported that Quimper Mercantile was mentioned in several letters received during testimony
about the MJB rezone request as an alternative to a big box store. She said that on March 10,
Councilmembers Johnson, Walters and Lovelett traveled to Port Townsend to visit the store and meet
with the CFO and floor manager of Quimper Mercantile. She showed slides of the exterior and interior of
the store. Ms. Lovelett explained that when Swain's Outdoors closed down in Port Townsend there was
an empty storefront in a prominent location that community wanted to fill with a general merchandise
store. She noted the nearest big box stores are nearly two hours from Port Townsend. She said the town
was looking for a community business model in keeping with its Buy Local values and small town
atmosphere. The result was the Quimper Mercantile, which is a publicly owned corporation with 1070
shareholders. She said $660,000 was raised by soliciting all over the peninsula at$100/share with a
$50,000 cap on any one shareholder. The store has 12,000 SF of retail floor space plus 3,000 SF of
office and storage space and sells clothes, shoes, school supplies, bedding and household items,
kitchenware, garden goods, seasonal items and toys but no groceries.
Ms. Lovelett reported that strengths of the Quimper Mercantile include local ownership and customer
loyalty, competitive prices on nationally recognized brands, an empty existing building to rent, and space
to expand as necessary. Weaknesses include the relatively small footprint to maintain variety, a
complicated fund raising mechanism that took over a year, difficulty obtaining product without credit
history, the expense of offering variety, and the challenge of not competing directly with other local
merchants. Addressing the question of what a community owned retail store could do for Anacortes, Ms.
Lovelett said it could fill some of the retail gap, provide needed goods for residents, provide sales tax
revenue, draw tourists and residents from surrounding islands, and create a unique shopping experience
at a destination store.
She reported that building a community mercantile requires leadership and vision, with five to ten
incredibly dedicated volunteers to build it, an existing location and building, an experienced mentor, a
funding method, a team to raise capital, developing connections to product lines, and time to build it. She
said it took Port Townsend about a year and a half to open the store. She said that Quimper is very close
to operating in the black after not quite a year in business. Mr. Walters and Mr. Johnson added their
observations of the store and the business. Mr. Walters echoed citizen comments that a destination store
could be a draw in Anacortes and said entrepreneurs would need to create such a store but the City could
assist by making prompt land use decisions. Mayor Gere mentioned Langley as another community with
an independently owned destination store. Councilmembers thanked their colleagues for the report.
There being no further business, at approximately 8:40 p.m. the regularly scheduled Anacortes City
Council study session of April 14, 2014 adjourned.
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