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HomeMy WebLinkAbout2014-05-19 City Council Minutes Approved City Council Minutes—May 19, 2014 At 7:00 p.m. Mayor Laurie Gere called the regularly scheduled Anacortes City Council meeting of May 19, 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 Gere announced the Sister Cities Doyle Geer Golf Tournament would be held on June 28 at Similk Beach Golf Course. The mayor advised that the longstanding tournament supports the Anacortes Sister Cities Association and encouraged anyone interested to participate. Ms. Lovelett reported that on May 13 she toured the Tesoro refinery as a member of the Marine Resources Committee and met with Tesoro environmental crews and staff from the Northwest Clear Air Agency. She said the NWCAA called the Anacortes air quality rating "excellent" and explained that the plumes visible from the refinery stacks are mostly water vapor from the sulfur scrubbers. Ms. Lovelett said she visited the Tesoro crude rail yard, spoke with the operators, and had many questions answered. She concluded that Tesoro takes pride in its stewardship of the air and water and the preparedness of its spill response team and was committed to providing jobs in the community. Mr. Adams reported from the Parks and Recreation Committee which met earlier in the evening. He said subjects discussed included progress on the funding package for the proposed spray park at Storvik Park; two cannery properties for sale on Guemes Channel along the planned route of the Guemes Channel Trail; and unauthorized tree removal at Washington Park. Mr. Adams reminded the public that no vegetation can be removed from any City park without park staff approval. Mayor Gere clarified that new restrooms at Storvik Park would be included in the funding proposal for the spray park. Mayor Gere said she would entertain a motion to amend the agenda to change Item 7b, Resolution 1889, to a discussion item without action at this time. Mr. Walters moved, seconded by Mr. Archibald, to amend the agenda to make Item 7b Discussion Only rather than Discussion/Possible Action. Vote: Ayes— Walters, Pickett, Adams, Lovelett, Archibald, Miller and Johnson. Motion carried. Consent Agenda Mr. Johnson moved, seconded by Mr. Adams, to approve the following Consent Agenda items. Vote: Ayes— Pickett, Adams, Lovelett, Archibald, Miller, Johnson and Walters. Motion carried. All in favor. 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 7, 2014 and May 14, 2014 are approved for payment as of May 19, 2014. Claims Check Numbers 72330 through 72484 in the total amount of$717,382.81 EFT Number 72329 in the total amount of$195.00 Pre-Written Claims Check Numbers 72326 through 72328 in the total amount of$3,302.46 Payroll for May 20, 2014 in the total amount of$594,325.59 Check Numbers 39531 through 39556 in the total amount of$23,218.69 Direct Deposit Numbers from 53933 through 54125 in the total amount of$351,430.98 EFT Numbers from 1672 through 1676 in the total amount of$219,675.92 Anacortes City Council Minutes May 19, 2014 1 In the same motion Council: Approved the minutes of April 30, 2014, May 5, 2014 and May 12, 2014 as if read; Approved the Street Fair Application for the 2014 Ragnar Relay Northwest Passage on July 18- 19, 2014; and Accepted as complete the 2014 Sidewalk ADA Ramp Retrofit contract with Trinity Contractors, Inc. (13-026-IDS-001). Contract Amendment: Makers Urban Design &Architecture (2016 Comprehensive Plan Update) Senior Planner Libby Grage presented an amendment to the contract with Makers Architecture & Urban Design for the 2016 Comprehensive Plan update to expand the scope of work for additional public outreach and support of the Community Advisory Committee. The additional cost would be $32,060 bringing the total contract to $231,900. Ms. Grage recommended authorizing the mayor to sign the contract amendment. Ms. Lovelett asked if the amendment incorporated an action plan into the scope of work. Ms. Grage advised that if Council wanted to engage Makers for an implementation plan it would require an additional contract amendment. Mr. Adams asked how much of the increase was for each added item. Ms. Grage said it was split about 50/50. Mr. Johnson moved, seconded by Mr. Adams, to approve the contract amendment with Makers Architecture & Urban Design. Mr. Walters inquired about the deliverables included in the contract. Ms. Grage described the development of alternatives based on the recommendations of the CAC, anticipated to be presented for public feedback at a workshop projected for November. Vote: Ayes—Adams, Lovelett, Archibald, Miller, Johnson, Walters and Pickett. Motion carried. Resolution 1889: Urging Increased Safety Standards for Rail Transport of Oil, Ethanol, and Other Flammable Liquids to Anacortes and Calling on the United States Department of Transportation to Adopt Rules for Rail Car Safety and Required Disclosure of Railway and Rail Bridge Inspections Mayor Gere introduced a proposed resolution presented by councilmembers Walters and Lovelett. Ms. Lovelett explained that the resolution was non-binding and urges Congress and the U.S. Department of Transportation to act quickly to implement safety standards to protect communities from some of the hazards inherent in oil by rail. She encouraged the public to read the full text of the draft resolution and said that nothing in it stands in opposition to Shell's application for its crude rail yard. Rather, she said it is directed to the federal government regarding lack of regulations. Ms. Lovelett said the resolution acknowledges that the local refineries are community partners, providers of family wage jobs, and that crude by rail is integral to their ability to stay competitive, and acknowledges the refineries' efforts to protect the safety of workers and the environment inside their facilities. She said constituents are concerned about safety and have not received satisfactory assurances from the railroad. She said it is the role of Council to speak up in support of safety for the community, for refinery and railway workers, and the environment. She added that local emergency response preparedness also needs to be addressed to reassure the public. Mayor Gere then invited councilmembers, the community and the refinery representatives present to engage in a community discussion. She suggested bringing the issue back to the next Council meeting for possible action after everyone had a chance to be heard and consider the information presented. Mr. Walters referenced a growing concern over emergency preparedness and said it was incumbent on Council to do what it could to prepare for disasters and prevent them where possible. He said everyone was impressed by Shell's presentation describing its crude by rail project but that Shell can't control the rails outside the refinery. He urged encouraging federal regulations to mitigate risks and to do so sooner rather than later, so Shell can use the new standards from the outset. He noted that Canada is acting faster in this regard that the United States. Mr. Walters emphasized that Anacortes is a refinery town, that both the town and the water treatment plant in Mount Vernon are exposed to many risks from crude by rail, and that it was appropriate for Anacortes to communicate to its Federal representatives the urgent need for higher safety standards. Sandra Spargo, 1408 11th Street, asked if Bakken crude is too explosive for rail transport. She outlined some of the issues surrounding Bakken oil train safety. She noted conflicting information reported by the Department of Transportation, the railroads and the American Fuel and Petrochemical Manufacturers. Anacortes City Council Minutes May 19, 2014 2 Ms. Spargo shared suggestions that oil producers are leaving too much propane in the product which makes the crude more explosive. She suggested that adjustments to the pressure setting on oil well heads could remove much of this gas. Ms. Spargo cited the May 7 DOT emergency order requiring railroads to notify local emergency responders whenever oil shipments travel through their states because it is an imminent hazard to the public. She observed that oil by rail has no margin for error due to natural disaster or sabotage. She said she believes Bakken crude is too explosive for train transport but supported Resolution 1889 because silence about oil trains enables the risk of an explosion or spill. Matt Gill, Senior Manager for External Affairs for Tesoro, 4502 Shelby Court, thanked Mr. Walters for correcting a few minor misstatements in an earlier draft of the resolution. He said he had contacted BNSF Railway about making a presentation to Council. Mr. Gill said BNSF had proposed June 12, which is not a Monday, but they'll keep looking for a mutually acceptable date. He said he appreciated Council holding off on taking immediate action to allow the opportunity for interested parties to provide more information. He extended an invitation for councilmembers and staff to come visit their rail facility which has been operating over a year now with no spills or accidents. Mayor Gere said she would contact Mr. Gill to see if a meeting could be arranged with BNSF's hazmat team while it is in town. Ms. Lovelett asked Mr. Gill why Tesoro is concerned about Council passing Resolution 1889. Mr. Gill said ultimately everyone is in agreement on getting answers to the questions councilmembers are asking and the points the resolution asks the federal government to take action on. He said Tesoro only wanted time to make sure all Council's questions were answered before taking action. Ms. Lovelett emphasized that the City reached out to the refineries with the draft resolution and in no way meant it as a sneak attack. Mr. Gill said it was not taken that way. He said everyone is working towards the same goals. Joe Luciano, Shell Refinery's Projects and Turnarounds Manager, spoke in the stead of Tom Rizzo who is traveling. Addressing the question of whether the resolution advocates anything Shell wouldn't advocate itself, he said transportation is a large issue being taken up by the DOT and others now. He said Shell's concern was the timing of the resolution with the rest of Shell's proposed crude by rail project. He said Shell is in a position where it can support but he offered a couple of corrections to the resolution. He said Shell is only being asked to deliver one unit train per day, not four. He said Shell is committed to constructing and operating its facility in a safe, environmentally sound manner and appreciated note of that on page 2. Mr. Luciano handed out copies of a May 14, 2014 study entitled "A Survey of Bakken Crude Oil Characteristics Assembled for the U.S. Department of Transportation" submitted by the American Fuel and Petrochemical Manufacturers and prepared by Dangerous Goods Transport Consulting, Inc. He recited the extensive qualifications of the author. Mr. Luciano pointed out that the sixth paragraph of the resolution says that 800,000 gallons of crude oil was spilled between 1975 and 2012 but that that number includes only rail spills and he noted that before Bakken crude was available not much crude was transported by rail at all. Mr. Luciano observed that Section 1 of the resolution sounds conclusive about the DOT rail transport safety agreement being insufficient to protect communities but rail safety is an evolving issue. He said reaching out to work with DOT and other agencies is a good thing but the current DOT interim safety agreement is not the end of the line. Finally, Mr. Luciano suggested that in Section 3(b), the rail safety standards should apply to all refinery rail facilities, both new and existing. Mayor Gere asked Mr. Luciano for a written copy of his suggested changes. Dan Cameron, Refinery Manager at Tesoro, spoke regarding emergency response and preparedness. He said that regarding safety and the environment the two refineries share best practices. He said they have worked for years with the Anacortes Fire Department to cross train and continue to train themselves and the surrounding communities. Rosemary Stevens, 2410 32nd Street, asked if railroad infrastructure including bridges has to be paid for by citizens. She also asked if Tesoro's current rail cars are the single-walled or double-walled cars. Mayor Gere said staff would find that out. Ms. Lovelett reported that Tesoro's cars are the latest, double-walled design. Anacortes City Council Minutes May 19, 2014 3 Ms. Pickett addressed the timing of the resolution. She said until very recently it wasn't understood that Bakken crude had a flash point more like gasoline than like more familiar crude oils that the tankers bring in. She said that makes her regard the whole process very differently. She noted that the refineries are good partners and provide good jobs and schools but during the Safety Board hearings she attended she learned that Washington State Dept. of L&I has four people qualified to inspect the 250 chemical and oil facilities in the state. She said the Safety Board recommended building a safety case, asking the refineries to demonstrate how safe the process is. She noted that the trains are crossing the Swinomish Slough railroad bridge and the community needs to know how safe that bridge is. She thanked the refinery representatives for attending. Mr. Walters reiterated that the resolution is not about the refineries but about rail transport and that it makes sense to have regulations adopted as soon as possible so Shell can buy the best cars up front for its new facility and not have to replace them later. He said the resolution focuses on railroad inspections and demands that railroads disclose the results of the inspections. Mr. Adams said Shell will be the last refinery in the area to get crude by rail and needs that facility so it can remain competitive. He mentioned that KOMO radio reported that the resolution was intended to keep oil trains away, which is not the case, and warned that information gets misinterpreted. He asked if a resolution is more effective than sending a letter. He urged having refineries, the DOT, mayors and councils working together to share concerns and accomplish things on an ongoing basis. Ms. Lovelett responded that at an earlier meeting with Congressman Larsen she learned that there is no mechanism in place. She called the resolution a formal recognition of a problem and that the formality of a resolution is needed. Mr. Adams observed that the City can only ask and recommend either way. Mr. Miller said he favored a letter over a resolution because the primary concern is emergency response and contingency plans and he'd rather spend time that. He said he was concerned with the timing of the resolution because it seemed prejudicial to Shell's project. He offered specific suggested edits for the resolution. He said the resolution says public safety is a primary goal of the City of Anacortes but he couldn't find that anywhere in the City's goals. He observed that nothing is perfectly safe. He urged looking at mutual aid for contingency response. He said the statistics cited should reference original documents. He echoed Mr. Luciano's remark about oil spill statistics cited in the letter being only for rail transport. Mr. Miller understood that the flash point of Bakken crude was like most light crude. He said he would not include the list of disturbing accidents. He corrected the number of trains. HE said that Shell's project would not necessarily double the present amount of rail traffic, the market controls that. He urged more explicitly stating that Shell and Tesoro are good community partners. He suggested pursuing answers about bridge safety following DOT's May 7 ruling. Regarding speed limits, he said he'd never seen trains coming into Anacortes fast. He suggested the following wording: "Tesoro and Shell refineries are critical to the economic future of the City of Anacortes and Skagit County. Both refineries need to be able to safely transport crude by rail in order to remain viable and competitive." Mr. Johnson said this issue is worthy of a resolution, stating that if recent crude by rail disasters had been due to terrorist acts there would be outrage but instead it is being called business as usual due to tired infrastructure. He said Shell and Tesoro have designed their facilities very well and if the rail system were as proactive it would be quite impressive. He said DOT's latest resolution strongly urges the use of the newest design of rail cars but the Anacortes resolution asks DOT to mandate that. He pointed out that no tank car could survive a 64 mph crash so it is important to look at the oil as it comes out of the fields and focus on stripping off the flammable gas before the crude is loaded into tank cars. He asked if that would be commercially viable. He also wondered who would be the third party to perform the safety and structural inspections called for by the resolution. Mr. Walters argued that a resolution is the most effective way to transmit Council's intention and listed other cities that have adopted similar resolutions. He said he did not want to focus on emergency response, he wanted to focus on avoiding the problem to begin with via infrastructure inspections and enhanced rail cars. He acknowledged that the federal government is working on rulemaking for the rail Anacortes City Council Minutes May 19, 2014 4 cars but he said they are way behind and the resolution stresses the need for action now. He said Transport Canada is mandating the phase out of the unreinforced tank cars. Mr. Adams said he was hoping to have ongoing discussions and if that can be integrated into the resolution, that's fine. He said if the federal government doesn't act by the end of the year it would be nice to be involved in some discussions on that. Mr. Johnson asked how the evening's suggestions from councilmembers would be incorporated into the draft resolution. Mr. Walters said he had heard everyone's comments and would be willing to redraft the resolution and bring it back for consideration. Mayor Gere suggested that meeting with the railroad would be another step to include. Mr. Archibald urged talking to BNSF before taking action on the resolution because railways are a primary concern. Ms. Lovelett said she was aware the resolution might not be passed but the point was to call attention to these issues. She cited information that has been forthcoming as a result of the discussion and the community will be better informed about the safety mechanisms already in place and what still needs to be done. Mr. Miller said safety is a paramount responsibility but you will never eliminate all risk of rail transport. He reiterated that the important take away is the importance of emergency response. He noted that local first responders are something Council has direct responsibility for. Mr. Johnson said the Public Safety Committee needs to keep on top of this and may need to budget more. Carolyn Gastellum, 14451 Ashley Place, thanked Council for considering this resolution and setting this example. She said the explosion on April 30 in Lynchburg, Virginia involved the newest tank cars so the current car design isn't enough. She observed that the federal government is considering lifting the ban on exporting crude oil out of the U.S. and she wondered if that would mean more crude by rail through Anacortes headed for tankers. Ms. Gastellum commended Tesoro and Shell for their focus on safety but said she did not think crude by rail should move so quickly. She reiterated that communities are concerned and thanked Council for considering this seriously. Sandra Spargo, 1408 11th Street, suggested that Councilmembers could still write letters even if Council adopts the resolution. She said this should be a people's resolution and that the details need to be included so people can understand it. She said she hoped it would be a model for other Skagit County communities. Jack Arrington, 5009 Croatian Way, said he feared that the concern about the speed of crude by rail would only be satisfied if the project is cancelled. He said people should come out and say what they want. He suggested that had this level of Council examination been adopted 6 years ago we'd probably have had a different situation with our roads and they wouldn't have deteriorated so we could keep a few extra employees on board. Mayor Gere summarized that the topic would move forward to a future meeting, Mr. Walters would work on redrafting the resolution, Tesoro would advise when the City can meet with BNSF personnel, and Mr. Luciano would send his comments in written form. There being no further business, at approximately 8:22 p.m. the regularly scheduled Anacortes City Council meeting of May 19, 2014 was adjourned. Anacortes City Council Minutes May 19, 2014 5