HomeMy WebLinkAbout2012-10-01 City Council Minutes Approved Nrolier
City Council Minutes—October 1, 2012
Special Meeting: From approximately 5:00 p.m. to approximately 5:10 p.m. the mayor and City Council
attended an advertised site visit at 2620 Commercial Avenue, proposed site of the North Sound Oral &
Facial Surgery Building. No public testimony was taken. City Councilmembers Eric Johnson, Ryan
Walters, Erica Pickett, Brad Adams, and Cynthia Richardson were present.
At 7:00 p.m. Mayor Dean Maxwell called the regularly scheduled Anacortes City Council meeting of
October 1, 2012 to order. Roll call found present: Eric Johnson, Ryan Walters, Erica Pickett, Brad Adams,
Bill Turner and Cynthia Richardson. Brian Geer was absent. Roll call was followed by the Pledge of
Allegiance.
Minutes of Previous Meeting
Mr. Johnson moved, seconded by Mr. Turner, that the minutes of September 17, 2012 and
September 24, 2012 be approved as if read. Vote: Ayes—Walters, Pickett, Adams, Turner, Richardson,
and Johnson. Motion carried.
Citizen Hearings
Wilhelmus Houppermans, 3412 K Avenue, reported that construction of the Memory Care Center began
about ten days ago. Mr. Houppermans said that he is still unhappy about the way that process was
handled and said that conditional use permits will continue to draw appeals. He asked councilmembers to
give those appeals the due attention they deserve.
Mayor/Council Communication and Committee Reports
Mayor Maxwell read a statement proclaiming September, October and November, 2012 United Way
Campaign Months in Anacortes and encouraged the community to volunteer and contribute financially to
the United Way. Debra Lancaster, Executive Director of United Way of Skagit County, and United Way
Fund Development Manger Cindy Eichner presented councilmembers with samples of their promotional
materials for the campaign and thanked Anacortes for its support.
Shane Cemore, den leader of Webelos Pack 4084, introduced members of the den who were present
fulfilling part of the citizen activity badge.
Mayor Maxwell promoted longtime Anacortes Police Department member Dave Floyd to Sergeant and
administered the oath of office to Sergeant Floyd.
Mr. Johnson announced that the Kiwanis Aktion Club electronics recycling program will pick up
computers and televisions for recycling during October. He said the number to call is published in the
Clamdigger or interested parties can contact Mr. Johnson directly.
Mr. Adams reported on the recent Anacortes Sister Cities trip to Romania and said it was a great
success. Mr. Adams encouraged community members to participate in future trips.
Mr. Adams said he had received a number of comments from the public about the 10%voluntary citizen
water conservation measures. Public Works Director Fred Buckenmeyer explained that under the terms
of the 1996 MOA, Skagit County PUD and the City of Anacortes are obligated to issue public service
announcements requesting voluntary water conservation when the Skagit River flow reaches a threshold
related to the Department of Ecology minimum instream flow rule. Mr. Buckenmeyer reminded the public
that we should all conserve our natural resources as a matter of course, explained factors affecting
stream flow, and underscored that water withdrawals by the City and PUD constitute less than 1%of the
average river flow.
Mayor Maxwell delivered his 2013 budget message which is included in full for the record at the
conclusion of the proceedings for the evening.
Anacortes City Council Minutes October 1, 2012 1
Consent Agenda
Mr. Johnson moved, seconded by Mr. Adams, to approve the following Consent Agenda items. Vote:
Ayes— Pickett, Adams, Turner, Richardson, Johnson and Walters. 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 September 20, 2012 and September 27, 2012 are approved for payment as of October 1, 2012.
Claims
Check Numbers 66075 through 66239 in the total amount of$4,498,015.19
EFT
Check Numbers 66073 through 66074 in the total amount of $96.00
Prewritten Claims
Check Number 66072 in the total amount of $42,239.39
Payroll for September 20, 2012 in the total amount of$587,843.83
Check Numbers 37606 through 37646 in the total amount of$33,418.91
Direct Deposit Numbers from 46030 through 46217 in the total amount of$358,366.75
EFT Numbers from 1458 through 1462 in the total amount of$196,058.17
In the same motion Council approved the street fair application for the Anacortes High School
Homecoming Parade on October 12, 2012 from 3:00 p.m. to 4:30 p.m.
Closed Record Public Hearing: North Sound Oral & Facial Surgery Building Conditional Use
Permit
Senior Planner Libby Grage presented an application from Carletti Architects for a Conditional Use Permit
for a 3,980 SF two-story oral and facial surgery clinic at 2620 Commercial Avenue. Ms. Grage displayed a
map showing the project site and summarized the project scope. She reported that an open record public
hearing was held before the Planning Commission on September 12, 2012 and that the Planning
Commission recommended approval of the CUP subject to staff-recommended conditions. Ms. Grage
said no appeals of the Planning Commission recommendation were received and that staff recommended
approval of the CUP application subject to the Planning Commission's recommended conditions. Mr.
Adams moved, seconded by Mr. Johnson, to approve the conditional use permit. Vote: Ayes—Adams,
Turner, Richardson, Johnson, Walters and Pickett. Motion carried.
Closed Record Public Hearing: Dalton Bed & Breakfast Conditional Use Permit
Mrs. Richardson disclosed that she knows the project applicant and lives within three blocks of the
proposed site but that she had not discussed the project with the applicant and did not feel she had any
conflict of interest. No one raised any objection to Mrs. Richardson participating in the proceedings.
Ms. Grage presented an application from Mike and Nancy Dalton for a Conditional Use Permit to
establish a four-room B&B in an existing singe family residence at 407 2nd Street on Cap Sante. Ms.
Grage described the proposed business and noted no external modifications would be made to the
residence. She said staff received only one letter from neighbors and it was in support of the project. Ms.
Grage reported that an open record public hearing was held before the Planning Commission on
September 12, 2012 and that the Planning Commission recommended approval of the CUP subject to
conditions. Ms. Grage said no appeals of the Planning Commission recommendation were received and
that staff recommended approval of the CUP application subject to the Planning Commission's
recommended conditions. Mr. Johnson moved, seconded by Mr. Turner, to approve the conditional use
permit. Vote: Ayes—Turner, Richardson, Johnson, Walters, Pickett and Adams. Motion carried.
There being no further business, at approximately 7:45 p.m. the regularly scheduled Anacortes City
Council meeting of October 1, 2012 was adjourned.
Anacortes City Council Minutes October 1, 2012 2
MAYOR'S BUDGET MESSAGE
October 1, 2012
Honorable City Council and members of our Community:
I am pleased to submit a balanced preliminary budget for 2013 for the City of Anacortes for your review,
comment, and action. Although this has been the most challenging budget year to date, once again, we
are presenting a balanced budget that does not rely on general fund reserves, and which continues to
provide a high level of service for our community. The proposed 2013 budget totals $41,523,440, and
represents a 1.08% increase from the adopted 2012 budget of $41,078,892. The slight increase is
primarily due to accounting requirements for our ambulance fund and debt service for our new Water
Treatment Plant bond.
As I previously stated, the 2013 budget was one of, if not the, most challenging budgets we have had to
prepare in the last 19 years. Since 2008, the economic climate has been difficult for all, including the
private sector and at all levels of city government. The City of Anacortes has seen its general fund
revenue stream decline 28% between its peaks and lows during the economic downturn. Building
revenues, real estate revenues, utility taxes, investment income, and facility charges have all declined as
a result of the current economy.
Additionally, in 2012 the State Legislature, in an effort to help fill the hole in the state's budget,
implemented changes that significantly and negatively impacted the City of Anacortes, as well as other
cities in this State. Starting in July 2012, the state began to withhold Liquor Excise Tax revenues that
have historically and rightfully been passed onto local governments. In 2011 this revenue stream for
Anacortes was nearly$80,000. Also, starting July 2013, State Ferries will be exempted from paying sales
tax on fuel purchases. The San Juan ferry fleet is fueled in Anacortes, which will result in the loss of
$105,000 in sales tax to the City (based on 2011 fuel prices).
Despite this reduction in revenues, for 2013 the City continues its commitment to maintaining and
improving our substantial infrastructure. In 2012 the City of Anacortes issued $12.7 million dollars in tax
exempt municipal bonds to provide funding to complete the new water treatment plant. Engineering
started on this project in late 2008, and construction is scheduled to complete in mid 2013. This is the
largest public works project in City history, with total costs of design and construction exceeding $60
million. As the project approaches 86%completion at the time of this writing, the project is ahead of
schedule, on budget, and with an incredibly low change order rate thanks to good engineering and
outstanding oversight by our team.
Other City infrastructure projects in the 2013 budget include $250,000 for street overlays, $100,000 for
sidewalk construction, $65,000 for continuing work on the Guemes Channel Trail, and $10,000 for traffic
calming features for city roads.
Accounts in the City of Anacortes are organized by fund, each of which is a separate accounting entity,
with its own cash, investments, revenues, and expenditures. The following is a departmental overview of
the 2013 preliminary budget:
GENERAL FUND
Administration/General
Departments continue to work cooperatively with our finance department and my office preparing a
budget that provides a high level of service for our community within the parameters of the 1% property
tax increase and during a time of reduced and eliminated general revenue streams. Without exception,
all departments in the city reduced their discretionary spending budgets from 2012 levels, and the
balanced budget presented to council and the community is feasible only because of capital and
operational austerity.
Anacortes City Council Minutes October 1, 2012 3
My administration has always used a fiscally conservative philosophy, maintaining prudent cash reserves
when at all possible, particularly in the general fund, our most critical fund. Anacortes remains one of the
lowest taxing cities in Skagit County with a 2012 millage of $1.71 /$1000 of assessed value. Property tax
revenues largely fund operations of the City's general government departments, particularly police, fire,
ambulance service, museum, human resources, parks and recreation, legal, courts, library, and street
maintenance; essentially all departments excluding our utilities.
Legal/Courts
The 2013 legal budget includes a contract city attorney, a contract public defender, and a contract
prosecuting attorney. In 2012, the City hired a new public defender after going through a proposal review
process for parties interested in providing public defender services for the City. In 2013 new caseload
requirements mandated by the State will go into effect to limit the number of cases a public defender may
represent. The City is looking at the requirements to ensure we are doing what we can within the law to
meet those requirements with the existing public defender. We are looking at indigent screening and
caseload for the public defender position. If the City can't meet the requirements for caseload for public
defender, it is likely that$60,000 in additional General fund expense would be incurred to hire another
public defender, with no offsetting revenue mitigation, something we would like to avoid if possible.
The City continues to comply with state law regarding public records requests. In 2011 the City
responded to 84 requests for information that totaled 400 hours of staff time. This year, we have already
received 71 requests that totaled over 155 hours of staff time to complete.
Public Safety
Police: The 2013 police department budget allows for the same level of response to calls for service as in
previous years, but reflects the need to allocate our most important resource, (our staff) in a manner that
maximizes efficiency without impacting the overall product of the department. We continue to leave our
Crime Prevention/School Resource Officer position vacant in order to maximize the number of patrol
officers on each shift. We continue to work with parks department and public works on providing an
offender work program in order to reduce jail costs and provide value to the community. This year the
program has saved the city$21,000 in jail offender costs. Training budgets are lower as we look to find
local alternatives to continuing training, knowing that we are now responsible for$3,500 of the basic law
enforcement costs for each new officer we employ another pass down from the state. Upgrades to the
county's law enforcement information network caused an increase to our budget, but we were able to
defer some of the upgrade costs out over a four-year period with no additional fees.
Fire/Medic: The same personnel who staff the ambulances at each fire station also staff the fire
equipment for fire responses. In the 2013 budget, the fire department is funding one paid position for the
next two years through a grant known as Staffing for Adequate Fire and Emergency Response (SAFER).
With this position, the fire department will be able to staff at the same level of full-time equivalents as the
2011 budget year. The City is engaged in formal discussions with Fire District#13, and the Town of La
Conner about the potential of consolidating fire protection and EMS services. The goal is to improve
service levels and or reduce cost through reduced duplications. The discussion will last approximately
two years and reports on the committee progress will be provided to the City Council and community on a
regular basis.
Human Resources
The human resources department focuses on prevention and training as a risk management strategy and
a way to reduce liability. Our director is involved with the Association of WA Cities (AWC) Employee
Benefits Advisory Board and WA Cities Insurance Authority's Loss Control Committee as a means of
managing these risks.
The City is cognizant of the large expense associated with health insurance premiums. The City was
again recognized as a Well City by AWC in 2012. This designation as a Well City provides the City with a
Anacortes City Council Minutes October 1, 2012 4
2%discount on medical premiums in 2013 resulting in significant savings. The City is pursuing the Well
City award in 2013 to further contain medical insurance premiums costs in future years.
The City is committed to providing a safe work environment. The safety committee is actively engaged in
reducing workplace injuries. Over the past year the City has realized a projected 25%decrease in our
experience rating. Focusing on safety and prevention provides cost savings to the City and employees in
premiums, and more importantly, helps reduces injuries.
The City has multiple-year bargaining agreements in place with Teamster's Local 231 and the IAFF 1531.
Negotiations are underway with the Fraternal Order of Police who represent the commissioned and
noncommissioned police employees.
Museum
On its website, the museum recently launched an upgrade that makes more than 10,000 photos and
thousands of other records available to online researchers -- building on years of work by the staff
members who created a large digital collection. At the Carnegie site, the museum has been upgrading its
permanent core exhibit, which provides an overview of Fidalgo and Guemes Island history, and a
renovation of the museum's research library, heavily used by residents and visitors alike, is being made
possible by a generous donor. Staff members helped facilitate the return of the Tommy Thompson Train
and calliope to Anacortes and are working with community members to arrange for the train's permanent
display. Staff will continue to focus on fine-tuning research services, inventorying museum collections and
preserving and digitalizing those collections so they are more easily accessible to the public. New
exhibits in the Maritime Heritage Center are being developed and the WT Preston will continue to be
maintained in the manner befitting a National Historic Vessel.
Planning/Economic Development & Building
The building department's budget is relatively unchanged from the last several years. Building permit
activity has remained generally the same in 2012 over 2011 levels. As of September 2012 there has been
a total of 345 permits issued compared to 315 in 2011 and 31 new single family residential structures in
2012 compared to 33 in 2011. The department continues to scan and archive old building files to reduce
physical filing space and help preserve records.
The planning and economic development department has a few projects scheduled to begin in 2013. The
department has budgeted $3,200 for economic development for retaining Buxton to help us complete a
retail and industrial marketing plan working with the Port, the Chamber, and the Hospital. Staff is working
to install additional wayfinding signs by the end of 2012 and we have budgeted $3,000 to install additional
signs in 2013. The 2012 budget also continues administration and funding out of the Community
Development Block Grant program.
AMBULANCE SERVICE
The City contracts with Skagit County Emergency Medical Services to provide ambulance service to all
residents and visitors on Fidalgo and Guemes islands. In addition to funding from the EMS levy, the City
provides direct funding in the form of sales tax, and property tax. Often over the past several years,
operating transfers from the General fund have been made to sustain the same level of service. Two
ambulances on shift 24 hours a day, and one ambulance on shift 12 hours a day, are maintained by the
City. The EMS funding is intended to subsidize the costs for two full-time ambulances; however the EMS
Levy subsidy's financial contribution to the City EMS fund has historically been about 35% of the
operation so we are seeking additional EMS funding to remove this disparity.
PARKS AND RECREATION
Our parks department continues to provide a high level of service to our community with recreational
programs for community members of all ages. We provide maintenance for 19 parks including
Washington Park, the City cemetery, and 2800 acres of City forestlands. In 2012 the parks department
took over management of the City Depot Plaza, including maintenance, and scheduling of events for the
plaza. The 2013 budget includes these new Depot requirements, and maintains the same level of staff
and service in other park areas as prior years.
Anacortes City Council Minutes October 1, 2012 5
In 2013, $65,000 has been budgeted to continue phase two of the Guemes Channel Trail, which will be
funded with Real Estate Excise Tax. We have asked our legislators for a$900,000 capital appropriation
to construct the trail from New York Avenue to Georgia.
LIBRARY
The library is successfully conserving its resources while providing excellent service to the community.
Our reading materials, DVDs, CDs, information service, free access to the meeting room, study rooms,
and public Internet computers continue to be popular with patrons and visitors alike. Since the library
began offering passport service last fall, we have processed 538 passports.
Library programs provide both education and entertainment to our citizens at no cost. To date in 2012 we
have had 93 adult programs with 4,000 in attendance and19 additional programs scheduled through
December. The hands-on computer classes have been especially popular for beginning computer users.
The 42 programs offered by the Children and Young Adult Library during the Summer Reading season
had 1742 attendees.
Changes in technology continue for the library. Combined usage of downloadable audio and eBooks has
increased 30%to date over 2011. As more patrons have electronic readers such as the Kindle, it is a
challenge for the library to meet the growing demand for eBooks. A phone application will be available for
patrons by the end of the year and in 2013 we plan to modify the library catalog for ease of use. Two
databases with streaming music are now available through the generosity of the Manieri bequest.
The materials budget has been trimmed for 2013, but (anticipated) continuing generous donations from
the Library Foundation, Friends of the Library, and local service clubs will help with the purchase of
electronic and print materials and minor equipment. The ongoing and very sizeable numbers of gift books
donated by community members also helps to add new and varied materials to our collection.
PUBLIC WORKS
Streets/Trails: The portion of the 2013 budget is smaller than historical levels due to reduced revenues;
however, the 2013 street maintenance budget contains accumulated REET and Impact fee money of
$250,000 for road maintenance overlays. The City will continue to take advantage of grant opportunities
and other available resources for projects that enhance our city streets, sidewalks, and utility
infrastructure in 2013.
The city was recently awarded over$600,000 in Surface Transportation Program [Rural] funds; in 2013
these funds will be used to construct improvements at the intersection of 22nd and R Ave.
We will continue to use the remaining grant funds awarded from the, WSDOT City Safety Grant and the
Safe Routes to School program.
Water Treatment, Transmission, and Distribution: The 2013 budget includes final funding for our new
water treatment plant project. The project is nearing completion with an estimate of startup in mid 2013. In
July of 2012, the city issued $12.7 million in bonds to provide funding to finish the construction project.
The city obtained a remarkable interest rate of 3.02% on that 20 year bond issue.
Wastewater Treatment, Collection, and Conveyance: The wastewater budget includes projects funded
by a portion of sewer connection fees to improve our wastewater infrastructure. The 2013 budget
provides $350,000 to construct upgrades to sanitary pump station #14 located near the Washington State
ferry terminal. Both the wastewater plant and pumping station electricity budgets have decreased as a
direct result of energy saving projects and operating efficiency.
Storm Drainage: The storm drain fund accumulates capital cash reserves from general facility charges
collected from building permit sales and utility fees. These reserves are restricted for capital projects, and
will fund a number of projects for the upcoming year including outfall reconstructions and miscellaneous
pipeline repair.
Anacortes City Council Minutes October 1, 2012 6
Sanitation: The operating budget includes$20,000 in capital funding to purchase replacement
dumpsters,
Equipment Rental and Replacement(ERR): The ERR fund continues to monitor and maintain the entire
City's fleet and equipment requirements.
Facilities: Our facilities staff continues to work to reduce electricity, natural gas, and water consumption
at our 14 city-owned buildings. The library, public safety building, and city hall have each substantially
lowered their energy usage. Collectively we are all working hard to share and implement energy savings
ideas citywide.
Conclusion
We have worked harder than ever this year to find ways to balance and streamline our expenses, while
doing everything possible to maintain the very high levels of service we have traditionally provided to our
citizenry. All projects and expenses in 2013 budget have been weighed and considered for the future and
"maintain and improve our quality of life,"while working to live within the reality of tightening resource
availability and opportunity.
I am hopeful that we may have weathered the worst of a battering storm and a very difficult economy. I
know that we are sharply focused on what needs to be provided for in our future to keep us on a course
of sustainability, opportunity, prosperity and the quality of life we expect and have enjoyed in the past.
We are fortunate to have an engaged a caring and collaborative city council, extremely professional staff
and involved citizens who are also dedicated volunteers. I am proud of the stewardship and the
commitment of this community, as we are truly "All in this Together."
I look forward to your input regarding the 2013 budget.
Respectfully,
H. Dean Maxwell
Mayor
Anacortes City Council Minutes October 1, 2012 7