HomeMy WebLinkAbout2014-06-16 City Council Minutes Approved City Council Minutes—June 16, 2014
At 7:00 p.m. Mayor Laurie Gere called the regularly scheduled Anacortes City Council meeting of
June 16, 2014 to order. Roll call found present: Eric Johnson, Ryan Walters, Erica Pickett, Brad Adams,
Liz Lovelett, John Archibald and Matt Miller. The assembly joined in the Pledge of Allegiance.
Citizen Hearings
No one present wished to speak on any item not on the agenda.
Mayor/Council Communication and Committee Reports
Mayor's Award of Merit: Police Chief Bonnie Bowers read a letter of commendation to Officer Scott Ray
for his heroic actions on May 18 at the rescue of crew members from a capsized vessel at the marina.
The Chief recognized Officer Ray's leadership to ensure safety for all involved and recommended him for
the Mayor's Award of Merit. Mayor Gere presented the Award of Merit to Officer Ray.
Water Conservation Poster Contest Award Winners: Public Works Director Fred Buckenmeyer
announced the 2014 Water Conservation Slogan Contest winners whose artwork is displayed on the side
of City sanitation trucks during the year. Mr. Buckenmeyer first explained the importance of water
conservation in the City, provided a brief overview of the water utility and shared statistics about how
much water it takes to manufacture selected consumer items. Mr. Buckenmeyer then presented awards
to Fidalgo Elementary School students Reece Carr, a first grader; Joseph Mack, a first grader; Jameson
Tidwell, a third grader; Tyler Jackson, a first grader; Maureen Mack, a third grader; and Teagan Estenson,
a third grader. Mayor Gere presented plaques to each of the winning students.
2015-2020 Capital Facilities Plan: Finance Director Steve Hoglund advised that the draft CFP was
provided to Council in the packet for the meeting and that all projects would be reviewed and questions
answered during the next two regularly scheduled study sessions. He said non-Public Works projects
would be addressed on June 23 and Public Works projects on June 14.
Unfinished Business
Public Hearing: Recreational Marijuana
Interim Planning Director Don Measamer recapped that voter initiative 1-502 approved in 2012 called for
establishment of a regulatory system for producers, processors and retailers of recreational marijuana for
adults 21 years of age or older. He updated Council on the revised rules issued by the Washington State
Liquor Control Board (WSLCB) in September 2013 including stringent limitations on the location and
operations of 1-502 businesses but said the regulations allow jurisdictions to specify use zones. He added
that the WSLCB has begun issuing licenses to 1-502 businesses. Mr. Measamer reported that the
Washington State Attorney General issued an opinion on January 16, 2014 that local governments may
ban 1-502 businesses and may regulate siting per local land use regulations but it is unclear if that opinion
would be upheld by the courts. Mr. Measamer summarized the three types of 1-502 businesses and the
separation zones established by the WSLCB. He displayed maps showing the exclusion zones and
available locations within the city limits based on the separation distances and current land uses.
Mr. Measamer advised that staff had drafted regulations based on comments from Planning Commission
and City Council study sessions. He said the definition and separation distances in the draft regulations
reference the WAC. He advised that staff had worked with City Attorney Brad Furlong and Police Chief
Bonnie Bowers to draft the regulations. He summarized that staff was proposing amending permitted
uses in the LM1 Use Zone, AMC Section 17.19.020, to allow state licensed producers, processors and
retail outlets; adding a new Section 17.64.070 (Special Uses) State Licensed producers, processors and
retailers; and amending Commercial Use Zone, AMC Section 17.24.020, Permitted Uses to allow state
licensed retail outlets. He then showed a map of the Commercial Use Zone with the exclusion zones
Anacortes City Council Minutes June 16, 2014 1
overlaid and pointed out the very limited area where retail 1-502 retail businesses would be allowed,
generally between 14th to 18th Streets on Commercial Avenue.
Mr. Measamer recommended that the City regulate 1-502 businesses but do so separately from the
previously adopted marijuana collective garden regulations. He explained the rationale behind the staff
recommendation to locate producers and processors in the LM1 zone and prohibit outdoor grow
operations.
Mr. Measamer reported that there had been very little public comment on the draft regulations before the
Planning Commission and that after the Planning Commission Public Hearing on May 14, 2014 the
Commission recommended approval of the draft regulations to City Council. Mr. Measamer added that at
that meeting two of the Planning Commissioners were concerned about 1-502 retail sales in the
Commercial Use Zone but that the majority had voted in favor of the regulations. Mr. Measamer added
that Ordinance 2908 established a moratorium on 1-502 businesses in the City of Anacortes and that the
moratorium would expire in August 2014. Mr. Measamer shared some of the questions raised by the
Commissioner about"infused products" (edible marijuana) and how those are regulated by the state
including labeling, testing and inspection.
Mr. Johnson raised concerns about infused products, referenced several media reports of tragic events,
and said he would like to know how vigorous the state's inspection process will be before the Anacortes
moratorium expires in August or else continue the moratorium. Mr. Archibald said those concerns are
valid but that like alcohol and the state will have tight regulations about labeling. Mr. Johnson noted that
to emphasize the dangers of drinking there are public service announcements and asked what sort of
public education program the state will have for infused products. Mr. Miller said he shared that concern
and said that alcohol has been used for a long time and its effects on the body are more generally
understood. He and said he needed more understanding how THC affects different body types and sizes.
At approximately 7:41 p.m. Mayor Gere opened the public hearing.
Dr. Jason Kitzman, 20654 Prairie Road in Sedro-Woolley, reported that he had received the one 1-502
retail store permit for Anacortes. He said the state has very strict regulations on edible marijuana, what
can be purchased, what can and can't be infused, potency of extracts, etc. He said the WSLCB set up
1000 foot separation distances. He said it is to the advantage of those in his industry to work with the City
to make sure this the safest process possible. He said people won't be able to walk by stores and see
product through the windows or signs depicting marijuana or paraphernalia. He said the state has set up
a really safe process to eliminate the people who weren't serious about the business. He said he wouldn't
be risking his practice in the industry if he didn't think it was safe and the right thing to do. Mr. Archibald
observed that new users may not know much about edibles and asked Dr. Kitzman what kind of
education he would provide to his customers about strengths, first time users, education about drug
abuse and what to expect, and so on. Dr. Kitzman replied that the state law sets aside 15% of marijuana
sale tax proceeds for community education. He said he didn't particularly like edibles, they are strong and
need to be taken lightly until users have some experience. He said the state requires safety documents to
be posted both inside and outside of the building and that drug counseling information be handed out with
the products.
Will Reigel, 14137 Crater Lake Road, said he was part of a group interested in operating a grow and
cloning operation to grow flowers for other producers. He said he appreciated councilmember concerns
about edible products but said that is only a portion of the market which is a huge potential tax revenue
and job generator for the state. He said the current moratorium has them at a full complete stop, sitting on
commercial space in the UGA but unable to proceed with their business plan, hire workers and start
paying taxes. He said this is a massive revenue generator for the state. He said he was not a fan of
edible marijuana but said that one of the cases cited by Mr. Johnson involved multiple intoxicants and
prescription medication. He said most professionals counsel that mental health medications should not be
used in conjunction with marijuana. He urged the community to come to an understanding of how to move
forward. He said the state requires background checks, regulations, and consistent enforcement: every
batch has to have a sample tested by third party agency, including edibles. Mr. Reigel urged not to throw
Anacortes City Council Minutes June 16, 2014 2
the baby out with the bathwater and get production facilities up and running so they can start generating
jobs and taxes.
Jack Arrington, 5009 Croatian Way, responded to earlier testimony that 15% of marijuana tax revenue
would go towards drug education by observing that everyone has seen how funds get redirected. He said
councilmembers should be writing to enforcement and health agencies that make the rules and find out
what they are going to do about it before someone ends up dead.
Mark Johnson, 9019 Molly Lane, said he was trying to receive a producer/processor license. He
addressed Mr. Johnson's concerns by saying that unlike Colorado, Washington is strictly regulating
labeling and testing of packaged product including a warning label and ingredients including CBDs, THC,
pesticides, etc. He said there will be educational opportunities available to everyone. He cautioned
against going off what Colorado has done because the system is above and beyond in Washington.
No one else wished to address Council. Mayor Gere left the public hearing open until the July 7 regular
City Council meeting at which time more input would be taken, then Council could take action at the
July 7, 2014 meeting.
Mr. Measamer inquired what additional information Council might like in preparation for that meeting. Mr.
Johnson said he'd like more information on the differences between Colorado and Washington
regulations and would like to know from Dr. Kitzman what he plans to do to help public awareness about
the dangers of mixing drugs. Mr. Miller said he was interested in potency information (similar to the
different alcohol contents of beer, wine and grain alcohol)and also the costs of doing blood tests for THC
vs. Breathalyzer tests for alcohol. Mr. Measamer described the WSLCB labeling, also the state guidelines
for testing for driving impairment, and said he would include those in future packets. Mr. Adams asked to
know if Council can regulate what types of products can be sold at a retail store. Mr. Walters said the
draft regulations are basically ready to go as presented and that Council can either zone 1-502
businesses, probably as presented, or prohibit 1-502 businesses entirely, he was okay with either one, but
he wanted to make a decision on an ordinance at the next meeting and then rescind the moratorium. Ms.
Lovelett seconded that sentiment and said this has been going on for a long time and that potential
businesses are in limbo. She said Council's job is to zone, not to regulate, and that Council has to respect
the voters' choice. Ms. Pickett wondered if the producers/processors and retail businesses could be
addressed separately since there are more questions about retail. Mr. Measamer said that would be
complicated but that Council has many options. He said he would prepare an ordinance for the July 7
meeting and reminded Council that if the moratorium needs to be renewed that must happen before the
August deadline.
Consent Agenda
Mr. Walters asked to remove the minutes of June 2, 2014 from the Consent Agenda.
Mr. Johnson moved to approve the following Consent Agenda items. Vote: Ayes—Walters, Pickett,
Adams, Lovelett, Archibald, Miller and Johnson. Motion carried.
Approval of Vouchers/Cancellation of Checks
Council voted unanimously that the following vouchers/checks audited and certified by the City's Auditing
Officer(Finance Director)and subsequently reviewed and approved by the Council Finance Committee
on June 4, 2014 and June 11, 2014 are approved for payment as of June 16, 2014.
Claims
Check Numbers 72609 through 72787 in the total amount of$526,533.37
EFT Numbers 72608 in the total amount of$93.60
Pre-Written Claims
Check Numbers 72606 through 72607 in the total amount of$875.00
Anacortes City Council Minutes June 16, 2014 3
Cancelled Checks
Check Number 72539 in the amount of$1070.00
Payroll for June 5, 2014 in the total amount of$873,534.45
Check Numbers 39557 through 39623 in the total amount of$39,324.49
Direct Deposit Numbers from 54131 through 54338 in the total amount of$607,815.05
EFT Numbers from 1677 through 1681 in the total amount of$226,394.91
In the same motion Council approved the minutes of June 9, 2014 as if read.
Mr. Walters requested a revision to the minutes of June 2, 2014 to clarify that the appointments to the
Lodging Tax Advisory Board were legislative appointments and included the Planning Committee
members. Mr. Walters moved, seconded by Ms. Pickett, to adopt the corrected minutes. Vote: Ayes—
Pickett, Adams, Lovelett, Archibald, Miller, Johnson and Walters. Motion carried.
Fiber-Based Broadband Infrastructure
Pam Allen, 14533 Jura Place, member of the Broadband Strategic Task Force started by the Economic
Development Division of the Anacortes Chamber of Commerce, introduced her teammates Wayne
Huseby and Bruce McDougall. The group presented a case for fiber-based broadband infrastructure.
They addressed what broadband is, why broadband is important for economic development, what
technologies are used to deliver broadband, why a fiber core infrastructure is important and why
leadership must be proactive for broadband. Ms. Allen said broadband refers to an always on, high speed
connection to the internet. She said it supports economic development including better education, better
health care, better public safety and emergency preparedness, and better government including civic
engagement. Ms. Allen cited ways that broadband supports business and entrepreneurship,job training
and workforce development, and local and regional development. She reminded that speed, cost and
availability of connectivity are important to businesses of all shapes and sizes, proposed a municipal fiber
optic gigabit core network, and gave examples of how different businesses might tie into that core. Ms.
Allen underscored that high speed broadband must be available and affordable to grow and sustain
economic development. She argued that broadband is a strategic public utility. She encouraged including
fiber infrastructure in the vision and goals for the 2016 Comprehensive Plan and developing a broadband
strategic plan that includes key stakeholder inputs.
Wayne Huseby, 3318 West 2nd Street, addressed the need for high speed. He said fiber is the only
technology that will take Anacortes into the future. Mr. Huseby explained that the prevalent transmission
of video and the ever increasing volume of internet traffic drive the need for both greater speed and
greater bandwidth. He provided examples of bandwidth requirements for various applications. Mr. Huseby
said cable and DSL are asymmetrical technologies that offer higher download speed than upload speed
but current applications such as videoconferencing required information to flow both ways so they require
symmetrical technologies, like fiber optic. Mr. Huseby discussed the three incumbent broadband
providers and said Frontier is not making fiber investments in Anacortes, Comcast is not using Fiber to
the Home technology, and Wave has low capitalization and thin coverage areas. He added that all the
current broadband configurations depend on a fiber backbone, including wireless. He addressed wireless
broadband options, both cellular and WiFi, and the challenges to those technologies due to the terrain of
Fidalgo Island. Mr. Huseby summarized the pros and cons of fixed and wireless high speed connections.
Bruce McDougall, 4404 Orchard Avenue, asked Council to look into a Dig Once policy, which Mount
Vernon has, which codifies that whenever a street or sidewalk is opened up, fiber conduit is installed for
future fiber. He said his group would be working with the Citizens Advisory Council on a research project
to take an inventory of what users in the city have and their projected needs. He said the group would
also be investigating business models a city might undertake. Mr. McDougall noted that fiber can be run
above ground but it is not as resilient. He said the group will be drafting a broadband strategic plan by the
end of the year, would like the City to put a Dig Once policy in place, and would like to put language about
broadband infrastructure into the 2016 Comprehensive Plan.
Anacortes City Council Minutes June 16, 2014 4
Ms. Lovelett thanked the group for taking this on and noted that broadband will support economic
development. Mr. Walters suggested reporting the success Mount Vernon has had recruiting businesses
since they built their fiber network. Ms. Allen noted that Anacortes has many home-based businesses so
residences need high speed, too. Mr. McDougall reported that the new call center model is to distribute
the calls to home-based workers. Mr. Johnson noted that Mt. Vernon is going to underground their wires
downtown and asked how a Dig Once policy would come into being. Ms. Allen said the group would like
Council to support City staff to write or research and implement a Dig Once policy as quickly as possible
to get conduit in place and optimally positions while road maintenance is happening. Mayor Gere
concluded that Anacortes needs to look at this as a basic utility and a basic economic driver.
Resolution 1892: SCOG By-Law Amendment
Public Works Director Fred Buckenmeyer presented Resolution 1892 authorizing the mayor to execute a
revised governance agreement and revised bylaws for the Skagit Council of Governments (SCOG). He
reported that the SCOG board recently voted to recommend the revised documents which were included
in the Council packet. Mr. Buckenmeyer explained that 60% of the cities and towns in Skagit County must
ratify the revised documents by July 1 for them to take effect, the July 1 date being chosen to comply with
grant application deadlines. Mr. Buckenmeyer said the change was driven by changes in state law which
require SCOG to have a single transportation planning board instead of the Rural Transportation Planning
Organization (RTPO) and the Metropolitan Planning Organization (MPO) it has now. He said the voting
structure of the new transportation planning board was included on page 8 of the agreement. Mr.
Buckenmeyer recommended approving the resolution and authorizing the mayor to execute the
governance agreement and the revised bylaws. Mr. Johnson provided some background on the new
voting structure. Ms. Lovelett inquired if there had been dissent among the members about the changes
in the voting structure. Mayor Gere, who sits on the SCOG board, explained that the ports and the major
employer representative were concerned but that after in depth study the mayor voted to approve the
changes. The mayor said she believed the new structure would best support cooperative efforts to spend
federal transportation dollars in the best interests of the citizens of the county. Mr. Johnson moved,
seconded by Ms. Pickett, to approve Resolution 1892 and authorize the mayor to execute the bylaws
and governance agreement. Mr. Walters disclosed that he is an employee of one of the contracting
parties. He recused himself from voting on the motion. Vote: Ayes—Adams, Lovelett, Archibald, Miller,
Johnson and Pickett. Abstain—Walters. Motion carried.
Resolution 1891: Emergency Declaration for WTP IPS Pump#2 Replacement
Mr. Buckenmeyer presented Resolution 1891 to declare an emergency and authorize replacement of a
pump at the Water Treatment Plant intake pump station. He advised that the mayor, Mr. Furlong and Mr.
Hoglund had all discussed the resolution and that declarations of emergency are not made lightly. He
explained that one of the four pumps at the intake station, which feeds the raw water to the treatment
plant, has been out of service being rebuilt for over a year. The second pump has been running 24/7 that
whole time and is beginning to show signs of distress. Mr. Buckenmeyer said that if the second pump
were to go down it would cause a serious problem so staff recommended a declaration of emergency to
allow them to procure a replacement pump without following the normal bidding procedures, which would
add months to the process. Mr. Buckenmeyer said the first pump was contracted for$318,000 but the
contractor has quoted a much lower price of$237,000 for the second pump and an installation duration of
only 12 weeks due to lessons learned from the first pump. Mr. Buckenmeyer recommended approving
Resolution 1891 and authorizing replacement of Pump No. 2 at the Water Treatment Plant intake pump
station. Mr. Miller asked if this expenditure had been planned for. Mr. Buckenmeyer said rebuilding the
pumps has been budgeted in the past but this one needed replacement and would be purchased from
cash reserves in Water Fund 401. Ms. Lovelett moved, seconded by Mr. Johnson, to approve Resolution
1891 declaring an emergency and authorizing replacement of the Water Treatment Plant's Pump No. 2.
Vote: Ayes—Lovelett, Archibald, Miller, Johnson, Walters, Pickett and Adams. Motion carried.
Contract Award: Solid Waste Wash Pad Structure
Mr. Buckenmeyer requested Council approval to award a contract for construction of a 30' x 60' steel
frame building to serve as a vehicle wash station for the sanitation trucks. Mr. Buckenmeyer explained
that the current open air wash pad allows rainwater to flow through the drains into the sanitary sewer
system. He said the new covered pad would also provide safer, more efficient washing facilities for staff.
Anacortes City Council Minutes June 16, 2014 5
Mr. Buckenmeyer reported that staff solicited bids from eight contractors through the Small Works Roster
and received three bids, the lowest of which was from Chad Fisher Construction for$81,526.90. He
recommended awarding the contract to Chad Fisher. Mr. Johnson noted that the project was in the 2014
budget and moved, seconded by Mr. Adams, to approve the contract with Chad Fisher Construction in
the amount of$81,526.90. Vote: Ayes—Archibald, Miller, Johnson, Walters, Pickett, Adams and Lovelett.
Motion carried.
Contract Award: FIRE/EMS Master Plan
Mayor Gere observed that fire and emergency medical service (EMS) are very expensive, necessary
services in the community and said Fire Chief Richard Curtis had requested that Council discuss and
explicitly decide on the appropriate level of service. The mayor said she had previously urged pursuing
that into 2015 but that recent restructuring of the EMS Commission may affect ambulance funding levels.
She said the City needs a tool to make adequate level of service decisions and to be able to demonstrate
to the County a third-party assessment of what Anacortes is doing and how it is providing the service.
Fire Chief Richard Curtis requested Council approval to contract with Citygate Associates, LLC to develop
a 10-year Fire/EMS Master Plan over the next few months. Chief Curtis said the Plan will help the City
respond to its upcoming report from the Washington Survey and Rating Bureau as well as provide tools to
address changes at the County level. Chief Curtis advised that Mr. Furlong had reviewed the contract. He
said the not-to-exceed contract amount of$42,966 was not in the 2014 budget but that there are cash
reserves for a new Fire Station 3 and that the consultant would be looking at the potential to move Fire
Station 1 and eliminate the need for a third station. The Chief added that if Council approved the contract
a budget amendment would follow in July.
Mr. Johnson and Chief Curtis discussed the difference between the Anacortes model, in which fire and
EMS services are provided by the same agency and staff, and the Mount Vernon model, in which fire and
ambulance services are delivered by separate agencies. Chief Curtis observed that under the Anacortes
model cuts in EMS funding affect fire protection as well. Ms. Pickett observed that the contract seemed
like a lot of money but said it would be valuable to have the perspective of a consultant with extensive
background and experience in other jurisdictions. Ms. Pickett moved, seconded by Mr. Johnson, to affirm
the contract for the Fire/EMS Master Plan. Mr. Adams observed that the Master Plan may inform
Regional Fire Authority planning efforts as well. Mr. Walters inquired about specific questions the Master
Plan would address. Chief Curtis advised that councilmembers should let him know if they want
information on specific topics so he can coach the consultant to comment on them. Chief Curtis added
that Citygate would synchronize its efforts with Makers to serve the 2016 Comprehensive Plan. Mr. Miller
echoed Ms. Pickett's concern about the cost of the consultant but said he expected a good return on the
investment. Vote: Ayes— Miller, Johnson, Walters, Pickett, Adams, Lovelett and Archibald. Motion
carried.
At approximately 9:17 p.m. Mayor Gere called a two minute break. At 9:20 p.m. the meeting reconvened.
BananaBelt Boats, LLC Shoreline Substantial Development Permit(Planning Commission
Recommendation Review & Decision)
City Attorney Brad Furlong advised that this matter was before Council as a recommendation from the
Planning Commission. He said that under the Shoreline Master Program (SMP) it was to be considered
as a closed record appeal: those who testify may make argument based on the record and pertaining to
the decisional criteria but may not introduce new evidence and any allusion to matters not in the record
must be disregarded by Council. Mr. Furlong specified that the decisional criteria have to do with
consistency with the SMP and the underlying zoning, matters which were addressed by staff in the packet
material and by the Planning Commission in its recommendation.
Mr. Furlong suggested that councilmembers reveal for the record any ex parte contact with respect to this
matter. Mr. Archibald stated that there had been some discussion of the matter in his coffee shop but it
would not affect his decision making. Ms. Pickett read a prepared statement summarizing her involvement
with the property including helping to organize the Marine Trades Association in 2006, discussions with
the applicant several years ago about legally required access to the DNR property, discussions with
Anacortes City Council Minutes June 16, 2014 6
Matthew Thornton and Richard Wright prior to the present permit application to attempt to find an
amicable solution to the access problem, discussions with Dennis Clark of the DNR prior to the present
permit application to ask about the events leading up to the lease for BananaBelt, and recent phone calls
with Matthew Thornton and email from Richard Wright during which no substance was discussed
because the matter was likely to come before Council. Ms. Pickett said she had no social or business
relationships with the parties, certainly not since she and her husband closed their business in 2004. She
stated that she brings an understanding of the law and a sense of fairness to the case but offered to
recuse herself if anyone objected to her participation. Mayor Gere reported that when she was a
candidate last summer she toured BananaBelt Boats but since the election had had no conversations and
had forwarded any correspondence from Mr. Wright to the Planning Department staff. Mr. Walters stated
that he had read a Letter to the Editor that was not in the record.
Mayor Gere swore all intended testifiers to promise to tell the truth to the best of their ability.
Mayor Gere asked the audience if anyone wanted any councilmembers to step down based on their
disclosures. No objections were raised.
Senior Planner Libby Grage presented Shoreline Substantial Development Permit application SDP-2013-
0003 from BananaBelt Boats LLC for a dry boat storage sales facility to accommodate approximately 96
boats ranging in size from 28 feet to 70 feet. Ms. Grage described the configuration and location of the
project adjacent to the existing BananaBelt Boats facility at 2129 V Avenue. Ms. Grage described the
public access elements of the proposal including a public access easement and construction of a
waterfront esplanade along the entire shoreline of the site and a small pocket park at the northwest
corner. Ms. Grage said the site is filled aquatic land managed by the DNR, is zoned CM2, and is in the
Urban Shoreline designation. She said the proposed uses appear to be consistent with those allowed
under the applicable zoning and SMP designation. Ms. Grage reported that the applicant is negotiating a
lease with DNR for use of the site and working with the City and DNR to obtain access to the property.
She reported the timeline of all significant permit milestones and advised that the Planning Commission
voted on May 14, 2014 to recommend approval of the permit with conditions to the City Council. Mr.
Walters asked if the public access easement would be permanent. Ms. Grage said the applicant and City
would be working with the DNR to provide that easement and that it was expected to be permanent.
Matthew Thornton, 4408 San Juan Avenue, General Manager of applicant BananaBelt Boats, requested
Council approval of the permit. Mr. Thornton said BananaBelt wants to expand in Anacortes and has
been working on the proposal since 2009, working with state agencies and the City to craft a plan that
works well. He said BananaBelt, in business in Anacortes since 2000, is now the largest used motor
yacht brokerage in the northwest. He said they were thrilled to have the opportunity to enter into lease
discussions with DNR. He said the plan was good for marine trades and business in the City. He said his
plan is allowed by both the City's Comprehensive Plan and the Shoreline Master Program. He referenced
letters in the record from marine trades workers who endorse the proposal and said the plan was
endorsed by the Anacortes American and recommended by the Planning Department and the Planning
Commission. He respectfully asked for Council approval.
Richard Wright, 12708 Marine Drive, said that at the recent Planning Commission meeting at which
Commissioners voted to recommend approval of the permit application the Commission did not have
complete information. Mr. Wright suggested that the Commission might have voted differently if they had.
He said Commissioners mistakenly believed the BananaBelt proposal for the DNR property was the first
and only proposal to be received in 40 years. Mr. Wright said Commissioners may not have known that
for 40 years the DNR would not allow any party to make proposals to improve the property except the
lessee. Mr. Wright said when the lease expired only the first proposal for a new lease was considered by
DNR even though there were other proposals waiting in line for consideration. He said DNR said
repeatedly that proposals are considered on a first come, first serve basis. Mr. Wright spoke of two other
proposals including one for a community boat yard. Mayor Gere inquired whether Mr. Wright's testimony
was part of the record. Mr. Measamer said parts of it were. Mr. Wright said some Planning
Commissioners cited that there was not a need for space for large boats because there is a large
adjacent parcel available but Mr. Wright countered that that parcel was not available, it was private land
Anacortes City Council Minutes June 16, 2014 7
reserved for use by a single company. He said the DNR parcel is the last available public parcel where
large boats can be brought ashore for services and said Commissioners were apparently unaware of this.
Mr. Wright said there are many citations and law and stated City goals and policies that indicate that the
proposal is inappropriate for the shoreline property and should be rejected. He cited SMP 18.16.40(c)
requiring consistency with the Shoreline Management Act(SMA). He cited Shoreline Section 3345 which
requires preference to water dependent commercial uses over non-water dependent commercial uses.
He said BananaBelt Boats is not a water dependent use. Mr. Wright reminded Council that
Comprehensive Plan Goal 3 encourages multiple businesses over a single large business. He said page
14 of the Commercial Marine Goals and Policies in the SMP and the SMA refer to water dependent
commercial uses. He said Comprehensive Plan Goal 3 says zoning ordinances for Commercial Marine
should encourage marine development that is water dependent. He said Policy A of that goal calls for
encouraging labor intensive commercial activities. Mr. Wright said the BananaBelt proposal forecasts only
8 jobs over the next 30 years. He said there is no sense devoting five acres of prime shoreline property to
creating 8 jobs that could be created elsewhere. He said that is not the intent of the Comprehensive Plan
and should not be permitted on the DNR shoreline property. Mr. Wright urged basing the decision on
allocating public land in keeping with the highest and best use for its citizens. He said other proposals
could contribute far better than the BananaBelt proposal.
Andy Stewart, 2003 M Avenue, owner of Emerald Marine Carpentry located in the CM1 zone and in
business in Anacortes 1998, spoke as a marine trades business owner. He said the DNR property would
be better developed as a heavy haul out yard in conjunction with the new Pacific Marine lift. He said the
boats for sale at BananaBelt can be stored anywhere, but the heavy ones that marine trades want to
service can't move down city streets, so the property is valuable in conjunction with the lift. He said boat
repairs and refits employ more people than boat sales. He said the community needs to determine the
highest and best use of the land and this is best done in the context of a larger land use plan.
Pat Barrett, 11987 Marine Drive, reiterated the comments of Mr. Stewart. He said what is legally right and
what's just might be two different things. He said the community needs to choose between boat yards that
employ lots of people and a boat storage and sales lot. He asked if the proposal would provide the
number and types of jobs to make Anacortes a working waterfront community, not a tourism community.
He said Council has worked hard to provide access to MJB's property so other companies can use it but
without use of the DNR property it's a moot point, you can't move large boats anywhere in the city easily
except onto the MJB or DNR properties.
Dave Kruse, 338 Lakeside Drive, Sedro-Woolley, said Anacortes is in a prime position to take advantage
of the new MJB travel lift. He said the vessels hauled out on this lift will be too heavy to move on city
streets so they will need to be kept on the MJB boat yard managed by Pacific Marine, which won't benefit
the entire marine trades community. He said the DNR property in question is the only property that could
be used for the purpose of a community boat yard, accessed by the entire marine trade community. Mr.
Kruse said this would further the image of Anacortes as a world class destination for boating and would
increase family wage jobs that bring families to Anacortes.
Matthew Thornton returned to the microphone to respond. Regarding marine trades job, he said each
boat on his lot requires 10-15% of the selling price in changes or repairs which creates work for the
marine trades. He said if BananaBelt can triple its sales, there will be more vessels that need repairs by
local businesses. He questioned whether large boats would move from MJB's lift to the DNR land and
who would get to work on them. Mr. Thornton said the BananaBelt plan would provide tax revenue and
create jobs. He repeated that the plan was recommended by staff and by the Planning Commission and
asked Council to approve it.
No one else wishing to speak, at approximately 10:00 p.m. Mayor Gere closed the public hearing.
Ms. Pickett provided some history of the site. She concluded that the idea of common boat yard with a
heavy lift had been around for a long time but no one had ever made a coherent plan. Ms. Pickett said the
question before Council is not whether BananaBelt's is the best of all possible plans, the question before
Anacortes City Council Minutes June 16, 2014 8
Council is does the plan comport with the SMP and development regulations, which it does. She noted
that the proposal also provides public access which the Comp Plan and development regulations call for.
Mr. Johnson observed that the proposed use is indeed water related. Mr. Walters said that interpretation
was backed up by the definition of"water related" in the SMP. Mr. Walters said the decision is
straightforward: the proposed use is a water related commercial use which is outright permitted in that
shoreline designation and the zoning code. He said no one has argued that the application does not
comply with the requirements of the SMP and the zoning code. He agreed that water dependent uses
should be given preference over water related uses but said there is only one application before Council.
Mr. Adams agreed that there may be a better use of the property but that Council has to follow the rules
and the application is consistent with the zoning and the SMP. Mr. Miller echoed those sentiments. Mr.
Archibald said there might be a better use but Council does not get to choose who DNR leases to and the
BananaBelt proposal is a good one.
Mr. Johnson said that since the Planning Commission's Findings of Fact find that the City has the
authority to implement these policies and is following standards and following the Shoreline Master
Program, he moved, seconded by Ms. Pickett, to approve the Shoreline Substantial Development permit
with the 21 conditions noted by the Planning Commission in its recommendation. Vote: Ayes—Johnson,
Walters, Pickett, Adams, Archibald and Miller. Nays— Lovelett. Motion carried.
Ordinance 2923: Medical Marijuana Collective Garden Moratorium
Mr. Measamer recapped the history of the relevant statutes and the City's Ordinance 2888 adopted in
2012 establishing where collective gardens can locate within the city limits. Mr. Measamer reported a
subsequent court case for the City of Kent which resulted in a ruling that collective gardens are not legal
under Washington's current law. He said the City Attorney and MRSC had recommend a moratorium on
collective gardens for at least a year to protect the City and staff from legal challenges while the
legislature reviews potential regulations on medical and recreational marijuana. Councilmembers asked if
the moratorium would apply to existing collective gardens. Mr. Furlong explained that the ordinance was
written to apply only to new applications for collective gardens, not to the existing garden, and would not
affect renewal of that garden. Mr. Furlong outlined for Council the state and federal legal issues involved
in the Kent case.
Mr. Johnson suggested clarifying the language in Section 3 of the ordinance to better reflect the intent:
... a licensing and zoning moratorium is hereby enacted in the City of Anacortes,
prohibiting the licensing and/or establishment of new medical marijuana collective
gardens.
Mr. Walters urged not engaging in more protracted discussions on marijuana regulations and asked if the
safety license could be eliminated and obviate the need for the moratorium. Mr. Furlong explained why
this would still leave the City and staff open to legal challenges. Mr. Walters suggested prohibiting
collective gardens under the land use code. Mr. Furlong explained there would then be a legal non-
conforming use in the city. He recommended adopting the moratorium as soon as possible, then
addressing other options moving forward.
At approximately 10:30 Mayor Gere invited public to speak.
Dr. Jason Kitzman stated that the issue is making good headway in the state legislature and that
collective gardens would be eliminated in the next session.
James Stevens, 1316 10th Street, the operator of the medical marijuana collective garden in Anacortes,
thanked Council and the mayor for their cooperation and understanding of medical patients and needs in
Anacortes. Mr. Stevens said that Dr. Kitzman was misinformed. Mr. Stevens reported that he sits on a
Senate advisory board for the medical marijuana laws in the state and that medical marijuana is alive and
well. He said they strive daily to comply with all collective garden laws. He said medical marijuana is the
will of the people and that the state legislature will reconcile the medical marijuana laws with recreational
regulations. Mr. Stevens reported that the garden is gaining patients and members at a rate of over 100
per month. He said he understood the motivation for the proposed moratorium and said Council should
Anacortes City Council Minutes June 16, 2014 9
do what it needs to do but that more and more medical professionals are sending patients and writing
medical marijuana prescriptions for them. He expressed his dedication to serving the needs of patients.
No other members of the public wished to speak.
Ms. Pickett moved, seconded by Mr. Miller, to approve Ordinance 2923 with the addition of the word
"new" in Section 3 as previously proposed by Mr. Johnson. Mr. Walters inquired about the work plan for
the moratorium. Mr. Measamer explained that the issue could come back before Council for public
hearing within 60 days as required by the ordinance and state law and that staff would then take direction
from Council on future action but that future steps would also depend on the state legislature. Vote: Ayes
—Walters, Pickett, Adams, Miller and Johnson. Nays— Lovelett and Archibald. Motion carried.
There being no further business, at approximately 10:40 p.m. the regularly scheduled Anacortes City
Council meeting of June 16, 2014 was adjourned.
Anacortes City Council Minutes June 16, 2014 10