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City Council Minutes—July 23, 2012
At 7:10 p.m. Mayor Dean Maxwell called the regularly scheduled Anacortes City Council study session of
July 23, 2012 to order. City Councilmembers Eric Johnson, Ryan Walters, Erica Pickett, Cynthia
Richardson and Brian Geer were present. Brad Adams and Bill Turner were absent.
Council Discussion on Direction to the City Council Planning Committee
Mayor Maxwell advised that councilmember Brad Adams, a member of the City Council Planning
Committee, could not be present at this meeting and had asked Council to defer this item to the next
available agenda. Mrs. Richardson said that having all members of Planning Committee present would be
very useful. Councilmembers agreed to defer the agenda item.
Council Review of New Items for 2013-2018 CFP
Finance Director Steve Hoglund summarized the purpose of the city's Capital Facilities Plan and
introduced the nine new items that have been proposed to be added to the plan for 2013-2018 including
8th and 0 pedestrian safety improvements, R Avenue improvements, extending Tyler Way to Anaco
Beach Road, striping 4th Street, replacing self contained breathing apparatus for the Fire Department,
replacing the water meter serving the Tesoro refinery, replacing non potable water system pumps at the
Wastewater Treatment Plant, replacing the Fire Department ladder truck, and replacing a solid waste
truck. Mr. Hoglund reminded Council that items in the CFP are not necessarily funded or part of the
current year budget but that the document serves long term planning and furthers grant opportunities.
Assistant City Engineer Eric Shjarback explained the vision for the R Avenue improvements and the
funding for same. Councilmembers and staff discussed funding mechanisms and project design details
for several of the proposed new items.
Review Contractual Water Rates
Mr. Hoglund reviewed for Council the proposed water rate changes for the City's contractual water
customers. Mr. Hoglund said the rates have not been updated for several years and summarized the
process for updating the rates and codifying them in AMC 13.32.050. Mr. Hoglund said the current
contracts call for an update to the capital rates for 2013 due to the Water Treatment Plant improvement
project. He presented the estimated capital rates that have been communicated to the contractual
customers for their 2013 budgeting and said the rates will be finalized after the bond issue later this
summer. Mr. Hoglund advised that the final capital rates will need to be adopted by Council by ordinance
in order to be implemented in January 2013. Mr. Hoglund then explained the O&M rates which include
variable costs, based on consumption, and fixed costs. He said those rates are also due to increase and
have not been updated since 2008. He explained the process for reconciling and updating the O&M rates
and added that he would bring an ordinance to council on August 6, 2012 to adopt new O&M rates and
implement those as of September 1, 2012. Mr. Hoglund said that that the contractual customers have all
been advised of the anticipated O&M rate changes and none have objected.
There being no further business, at approximately 7:55 p.m. the regularly scheduled Anacortes City
Council study session of July 23, 2012 adjourned.
Anacortes City Council Study Session Minutes July 23, 2012 1