HomeMy WebLinkAbout2014-06-02 City Council Minutes Approved City Council Minutes—June 2, 2014
At 7:00 p.m. Mayor Laurie Gere called the regularly scheduled Anacortes City Council meeting of
June 2, 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: Mayor Gere recognized four staff members for extraordinary efforts to mitigate
the April 8 shutoff day on citywide computers for Windows XP. The mayor presented the Award of Merit to
Information Systems Manager Jose Cervantes, Information Services Technician Ron Hatton, Senior
Accountant Philip Steffen and Library Automation Assistant Rossy Trejo-Cuevas.
2015 Budget Kickoff: Mayor Gere announced the opening of the 2015 budget season and invited
councilmembers to submit ideas and input for the draft budget which she would present to Council on
September 29.
Lodging Tax Committee Appointments: Consistent with RCW 67.28.1817 Mayor Gere recommended that
Mark Lione, Philip Burton and Andy Stewart be reappointed to serve on the Lodging Tax Advisory
Committee and that Russ Olivier be appointed to serve on the Lodging Tax Advisory Committee. She
requested Council confirmation of the appointments. Mayor Gere observed that in January
councilmembers Adams, Walters and Archibald were assigned to the City Council Planning Committee
and will also serve on the Lodging Tax Advisory Committee. Mr. Walters moved, seconded by Mr.
Johnson, to appoint the named people to the Lodging Tax Committee. Vote: Ayes—Walters, Pickett,
Adams, Lovelett, Archibald, Miller and Johnson. Motion carried. All in favor.
Mayor Gere announced that on May 22, 2014 the American Public Works Association (APWA) named the
City of Anacortes Water Treatment Plant the Project of the Year for 2014. Councilmembers and the
mayor congratulated the Public Works staff for their efforts.
Mr. Adams reported from the Planning Committee which met earlier in the evening. He said
councilmembers, Planning Commissioners, Board of Adjustment members and other City committee
members and staff would be attending a WCIA training session on the evening of June 4 regarding
planning issues. He announced that the City had hired an associate planner, Kevin Cricchio. He reported
that the adult entertainment ordinance had been reviewed by the committee to address concerns
expressed by citizens. He added that proposed recreational marijuana regulations would come before
Council at its June 16, 2014 regular meeting.
Unfinished Business
Transportation Benefit District
Public Works Director Fred Buckenmeyer addressed questions on this topic that were raised at the May
27 City Council study session. In response to a question about REET spending on street maintenance
Mr. Buckenmeyer presented a chart showing REET-funded street overlays since 2000 including
R Avenue rehabilitation, T Avenue overlay, Skyline overlays, Skyline Division 6, 22nd Street and
R Avenue overlay, Pennsylvania Avenue and the I Avenue rebuild. Mr. Walters and Mr. Miller said they
would like to know the total spent, not just the REET funded projects. Mr. Buckenmeyer explained that
overlay work was included in many street improvement projects and some utility projects, including grant
funded projects, during that time so exact apportionment would be difficult. Councilmembers discussed
the restrictions on REET and that the legislature has allowed cities and counties to use REET for facilities
maintenance through 2016.
Anacortes City Council Minutes June 2, 2014 1
In response to councilmember requests for a list of street maintenance projects that would be pursued,
Mr. Buckenmeyer first explained that the list was subject to change in response to utility repairs, grant
opportunities and other factors. He presented a tentative list of priority projects including D Ave/37th/A Ave
overlay in 2015; West end slurry sealing in 2016; Commercial Avenue overlay(north of 12th Street) in
2017; Northern Pacific Addition slurry sealing in 2018; and 32nd Street and M Avenue overlay in 2019. He
added that he intended to identify each year's projects more specifically during annual development of the
Capital Facilities Plan and budget.
Mr. Archibald agreed that staff needed to be able to adjust plans to make best use of funds. Ms. Lovelett
said it was important for the public to understand that the proposed $1.1 M/year for street maintenance
includes a $20 increase in vehicle tabs and an increase in utility tax to 12%. Mr. Walters said Council
should be able to choose which projects are pursued and said the existing mechanism is the 6-year
transportation plan. Mr. Adams suggested using cash reserves as part of the funding package. Mr.
Walters agreed that some very bad roads are not on the priority list and that the City should be able to
spend cash reserves on those. Ms. Pickett urged her colleagues not to be penny wise and pound foolish
and said $1.1 M/year is not really enough to make significant improvements before repair costs increase
significantly. Mr. Johnson agreed, referencing the table on Page 8 of the Capitol Assets report indicating
that if the City spent$1.5M/year on street maintenance for 10 years it would still face $59.7M of deferred
maintenance which would have to be funded sooner or later. Mr. Walters asked why all the arterials could
be addressed in the next five years. Mr. Buckenmeyer replied that councilmembers had asked for some
improvement in both arterials and residential streets. He again suggested that the City work with the
proposed funding level for a few years and then re-evaluate and decide if a higher spending level is
desired by the public. Mr. Walters echoed Ms. Pickett's and Mr. Johnson's observations that at
$1.1 M/year the City won't gain any ground. Mr. Buckenmeyer agreed but said $1 M/year is not
insignificant and asked Council to let staff work with that for a few years to see what could be
accomplished.
Mr. Buckenmeyer concluded with a slide summarizing staff's recommendation: establish a Transportation
Benefit District, establish $20 vehicle tabs, and change the solid waste tax from 3.4% to 12%.
At approximately 7:42 p.m. Mayor Gere invited the public to speak on this topic. She said it would come
back before Council at the June 16, 2014 regular meeting.
Wiley Clark, 5304 Doon Way, said this should be called a Transportation Taxing District. He cited
provisions of RCW 36.73.040 identifying TBDs as taxing districts. He said Council can already levy
property taxes, fees, bonds, and exercise eminent domain. Mr. Clark said the TBD just creates another
level of government and allows councilmembers cover from the appearance of raising taxes. He
suggested the citizens could vote on a bond to fix the streets if that were needed. Mr. Clark encouraged
Council to fix the streets with an in house solution and not expand government.
Jack Arrington, 5009 Croatian Way, said he had yet to hear Council or staff express outrage at the
spending decisions made over the last six years. He asked for a report of how and why those decisions
were made and if it is going to continue. Mr. Arrington urged councilmembers to send a letter to congress
saying that cities don't need $2M for roundabouts, they need $2M to pave streets. He said grants should
not have ideological purposes but should be used for what is good for the people. Mr. Arrington reported
that he had called in the many potholes on Windsor Street but they had not been fixed.
Mr. Buckenmeyer said he would schedule a public hearing on the proposal for the next regular Council
meeting. Ms. Pickett reported that the cost of landscaping a roundabout is about half the cost of
maintaining a traditional traffic signal. Mr. Johnson asked to know how many miles of road staff would
propose to overlay each year. Mr. Walters said for the public hearing the proposal needs to be very clear
about the taxes and fees proposed and what would be done with that money as well as clarifying that the
TBD is only a taxing mechanism, not another layer of government. Mr. Buckenmeyer suggested that the
Public Works Committee could assist with that. Mr. Johnson asked for some rationale for how much
REET staff was proposing to use for street maintenance.
Anacortes City Council Minutes June 2, 2014 2
Willette Business Park
Interim Planning Director Don Measamer recalled that at the March 10, 2014 City Council meeting
councilmembers reviewed a draft real estate services agreement with Fidalgo Commercial Real Estate
Services (Walt Meagher)and directed staff to work with City Attorney Brad Furlong to develop a revised
services agreement to hire Mr. Meagher to report to Council on the best options for the site including
zoning, uses, and whether to sell or lease. Mr. Measamer advised that grading and geotechnical issues
would need to be addressed as well as wetlands on the site. Mr. Measamer offered to answer questions
on the draft agreement included in the Council packet and noted that the agreement did not contain a
cap. Mayor Gere asked what level of cap might be appropriate. Mr. Measamer suggested $5,000 initially
with an option to increase to$14,000 depending on Mr. Meagher's initial report. Mr. Archibald asked for a
scope of work or list of deliverables. Mr. Adams said he would like to see Mr. Meagher's recommendation
on the highest and best use of the site and said he would like to see that soon, it shouldn't take too long.
Mr. Walters urged signing a contract sooner rather than later but agreed that all contracts should have a
cap and said $5,000 would be okay or even higher as long as staff is overseeing the work. Mr. Archibald
again suggested a general outline of the scope of work and said he was comfortable allowing staff to
develop that. Mr. Measamer said he would work with Mr. Furlong to modify Exhibit A to the agreement to
add a $5,000 cap with an option to expand and bring the agreement back to Council on the Consent
Agenda at the next regular meeting. Mr. Walters suggested moving quickly so any zoning changes
recommended by Mr. Meagher could be considered as part of the Comprehensive Plan update. Mr.
Walters moved, seconded by Mr. Adams, to authorize the mayor to sign an agreement with Mr. Meagher
substantially similar to the draft in the packet with the addition of a $5,000 not to exceed amount. Vote:
Ayes— Pickett, Adams, Lovelett, Archibald, Miller, Johnson and Walters. Motion carried.
Consent Agenda
Regarding Agenda Item 6b, Vouchers, Finance Director Steve Hoglund pointed out the expenditure listing
included in the Council packet which is the same one reviewed and approved by the Council Finance
Committee on Wednesdays. He said this information was included to bring more transparency to the
expenditure process. Mr. Hoglund noted that the vouchers approved on the Consent Agenda typically
vary slightly from the list approved by CFC because some items are approved in order to authorize staff
spending before all requirements for payment have been met and checks are actually cut.
Ms. Lovelett moved, seconded by Mr. Johnson, to approve the following Consent Agenda items. Vote:
Ayes—Adams, Lovelett, Archibald, Miller, Johnson, Walters and Pickett. 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 May 21, 2014 and May 28, 2014 are approved for payment as of June 2, 2014.
Claims
Check Numbers 72489 through 72605 in the total amount of$938,708.52
EFT Numbers 72486 through 72488 in the total amount of$11,827.00
Pre-Written Claims
Check Number 72485 in the total amount of 148.00
In the same motion Council:
Approved the minutes of May 19, 2014 and May 27, 2014 as if read and approved the Street Fair
Application for the 2014 Anacortes Arts Festival on August 1 —August 3, 2014.
Samish Indian Nation Services Agreement
Mr. Buckenmeyer reviewed the information on this topic that had been presented at the May 27, 2014
study session. He said the draft agreement in the packet covered utility connections, fire and police
services, and voluntary contributions from the tribe to cover revenue the City will forego if the Samish
property in the vicinity of SR20/Stevenson Road/Thompson Road is placed in trust. He added that the
Samish Indian Nation had reviewed and was in the process of executing the agreement. Mr.
Anacortes City Council Minutes June 2, 2014 3
Buckenmeyer explained that the agreement was to the benefit of the City because once the land was
converted from fee to trust the City would no longer have jurisdiction over it and would not be able to levy
property tax, sales tax or lodging tax on transactions there. He said the agreement memorializes
voluntary payments that are agreeable to both parties.
Ms. Lovelett commended the Samish Nation for this partnership and moved, seconded by Mr. Johnson,
to accept the services agreement. Mayor Gere invited the public to speak on the issue.
Wiley Clark, 5304 Doon Way, said the audience would like to see the numbers proposed. Mr.
Buckenmeyer said the agreement specifies 1)for property tax, 0.00194 of the fair market value of the
property each year,just like any other property in the city; 2)for retail sales tax, 1% of annual retail sales
on the property; and 3)4% of annual sales of lodging. Mr. Hoglund clarified that the City receives 0.85%
of retail sales inside the city limits with Skagit County getting the other 0.15% of the 1% local portion so
the subject agreement was to the advantage of Anacortes. Mr. Walters summarized that the Samish were
basically agreeing to pay the same rates as everyone else which was a very good deal for the City since
the Samish would not be required to pay anything barring this agreement.
Jack Arrington, 5009 Croatian Way, asked for information on how the City is compensated for EMS
services provided to the tribes since they do not pay property tax. Mr. Buckenmeyer responded that per
the agreement, the Samish will either pay for ALS ambulance service by paying Skagit County EMS
which in turn pays the City or the tribe can pay the City directly at a rate of$.35/1000 of fair market value
of the property.
Vote: Ayes—Lovelett, Archibald, Miller, Johnson, Walters, Pickett and Adams. Motion carried.
Contract Award: WWTP Electronic Operations & Maintenance Manual Development
Mr. Buckenmeyer requested approval of a contract with HDR Engineering, Inc. for electronic O&M
manuals for the Wastewater Treatment Plant. He explained in some depth the nature of the project and
the need for a single source of integrated, current, searchable information about how to operate the plant.
He described the many energy saving developments in the plant technology in recent years and said that
standardized operations are important to ensure that maximum energy savings continue to be realized.
For comparison, Mr. Buckenmeyer reported that similar electronic O&M manuals prepared by HDR for the
new Water Treatment Plant cost approximately$300K. He recommended approval of the contract with
HDR in the amount of$114,865.
Ms. Pickett confirmed that a paper copy is included in the price. Mr. Johnson confirmed that the plant staff
would be able to update the manual for future changes. Mr. Walters requested more information on what
would be produced including screen shots and asked if there would be ongoing costs for upgrades. He
said he was not comfortable authorizing the contract based on the information presented. Mr. Miller
confirmed with Mr. Buckenmeyer that the contract cost covered software only, not hardware. He asked
how the WTP manuals were working and if they were increasing staff efficiency. Mr. Adams moved,
seconded by Ms. Pickett, to approve the contract with HDR for electronic operations and maintenance
manuals for the Wastewater Treatment Plant in the amount of$114,865. Mayor Gere invited comments
from the audience. No one present wished to speak. Mr. Walters observed that the contract was not
included in the Council packet and said the scope of work might provide more information for
councilmembers. Mr. Buckenmeyer said that he had intended that to be included in the packet and that
he would provide it after the meeting. Vote: Ayes—Archibald, Miller, Johnson, Pickett and Adams. Nays—
Walters and Lovelett. Motion carried.
Resolution 1890: Storvik Park Spray Park & Restroom Grant Application— RCO
Parks & Recreation Director Gary Robinson summarized the information presented at the May 27 study
session regarding the proposed resolution authorizing staff to apply to the Recreation Conservation Office
for a 50% matching grant to build a restroom and spray pad at Storvik Park. Recreation Manager Nicole
Johnston addressed councilmember questions raised at the May 27 study session. She said Larry Otis at
Mt. Vernon with similarly sized spray pad reported that the water cost there ranged from $900-
1200/month, labor cost ranged from $75-100/day for garbage and drain cleaning, and approximately 200-
Anacortes City Council Minutes June 2, 2014 4
300 users per day visited the park during May-September. Ms. Johnston reported that vandalism had not
been a problem at the Mt. Vernon spray pad. She also said that of the total project budget for the
Anacortes park approximately$185,000 was for the bathroom and $375,000 for the spray pad.
Ms. Lovelett observed that the $185,000 of required City matching funds was what it would cost to build
the restrooms and asked to be sure those are constructed in 2015. Mr. Miller inquired if the estimated
$3,000/month operational cost for the park could be absorbed by the Parks budget. Mr. Robinson
responded that most of those costs were already being incurred at Storvik Park and the only additional
cost would be the water. Mr. Archibald suggested a concession stand at the park might help offset costs.
Mr. Walters said this would be a good use of grant funds that could be used to build the bathrooms that
need to be built in any case but warned that additional parking might be necessary. Ms. Lovelett
suggested the Parks Committee look for ways to incorporate more parking. Mr. Robinson said he only
anticipated tight parking when ball games were scheduled at the same time as peak spray pad use. Mr.
Johnson moved, seconded by Ms. Lovelett, to adopt Resolution 1890 authorizing the mayor to apply for
a grant through the State RCO for restroom and spray park improvements at Storvik Park. Mayor Gere
invited comments from the audience. No one present wished to speak. Vote: Ayes—Miller, Johnson,
Walters, Pickett, Adams, Lovelett and Archibald. Motion carried.
Contract Modification: Q& R Paving Project
Mr. Buckenmeyer advised that the information on this agenda item contained in the Council packet had
been replaced with the revised memo he had handed out just before the meeting. Mr. Buckenmeyer
displayed a map showing the limits of the current paving contract with Lakeside Industries between 11th
Street and 22nd Street on Q/R Avenue excluding the intersection of 17th and Q Avenue. He explained that
the 17th Street intersection had been excluded from the contract due to concerns that the complicated
work there could not be completed in the tight construction window between summer events but that the
contractor has assured that it could be completed in time so staff was proposing a change order to add
the 17th Street intersection to the contract. Mr. Buckenmeyer recommended approval of Change Order 1
to the Lakeside contract in the amount of$48,488.05. Mr. Buckenmeyer added that the remainder of Q/R
Avenue would be bid for overlay as a separate project later in the year. Mayor Gere invited comments
from the audience. No one present wished to speak. Mr. Johnson moved, seconded by Mr. Miller, to
authorize the mayor to execute Change Order No. 1 to the contract with Lakeside Industries, Inc. for the
construction of the Q and R Avenue Paving Project, Phase 1. Vote: Ayes—Johnson, Walters, Pickett,
Adams, Lovelett, Archibald and Miller. Motion carried.
Contract Award: Transportation Comprehensive Plan Update, Phase I
Mr. Buckenmeyer requested approval of a contract with Transportation Solutions, Inc. (TSI)for the first
phase of traffic analysis for the 2016 Transportation Comprehensive Plan. Mr. Buckenmeyer advised that
a second phase would follow but the initial contract would allow TSI to be on board for some of the public
participation elements of the current comprehensive plan update and to coordinate with Makers to
prevent duplication of effort. He said Phase I includes an inventory of up to 20 potentially affected
intersections, traffic counts, public meetings, citizen input, two work sessions with staff and two public
meetings with the Citizens Advisory Committee. He recommended approval of a contract with TSI in the
amount of$30,735 for Phase 1.
Ms. Lovelett asked how much Phase 2 would cost. Mr. Buckenmeyer said it would depend on the results
of Phase 1 and public input. Ms. Lovelett observed the number of consultant contracts approved recently
and asked how much was being spent on consultant services compared to past years. Mr. Miller said he
was comfortable that these consulting contracts had been included in the budget. Mr. Johnson asked if an
integrated pedestrian/bicycle/vehicle/bus route transportation plan would be included. Mr. Buckenmeyer
said the recently adopted AB/PAC Non-Motorized Plan would be included in the 2016 Transportation
Comprehensive Plan. Mr. Johnson asked if buses would be included. Mr. Buckenmeyer said SKAT had
its own master plan. Mr. Archibald asked if TSI would look at the feasibility of a local bus system. Mr.
Walters asked if the City could float its own trolley on Commercial Avenue and out to the ferry terminal.
He also asked who would write the policy element of the Transportation Comprehensive Plan. Mr.
Buckenmeyer said that was still being discussed and that TSI or City staff might do it. Mr. Archibald
added that he had some preliminary numbers on a local trolley that he would share in the near future.
Anacortes City Council Minutes June 2, 2014 5
Mr. Adams moved, seconded by Mr. Johnson, to award TSI a contract in the amount of$30,735 for
Phase 1 of the 2016 Comprehensive Plan update Mayor Gere invited comments from the audience. No
one present wished to speak. Vote: Ayes—Walters, Pickett, Adams, Lovelett, Archibald, Miller and
Johnson. Motion carried.
Executive Session
At approximately 8:54 p.m. Mayor Gere announced that per RCW 42.30.110(1)(b,c) councilmembers and
City Attorney Brad Furlong would convene in Executive Session to discuss a potential real estate
transaction for approximately 15 minutes and that the meeting would then be adjourned with no action
taken. There being no further business, at approximately 9:08 p.m. the regularly scheduled Anacortes
City Council meeting of June 2, 2014 was adjourned.
Anacortes City Council Minutes June 2, 2014 6