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City Council Minutes—October 10, 2011
At 7:00 p.m. Mayor Dean Maxwell called the regularly scheduled Anacortes City Council study session of
October 10, 2011 to order. Role call found present: Eric Johnson, Nick Petrish, Erica Pickett, Brad
Adams, Bill Turner, Cynthia Richardson and Brian Geer.
Council continued its review of the proposed 2012 budget.
Museum Director Steve Oakley provided an overview of the museum's activities planned for 2012. He
reviewed the 2012 budget including the full time museum director and a number of part time staff. He said
the budget holds spending at 2011 levels overall. He noted the 50% decrease in electricity costs now that
exhibit space lighting has been converted to LED thanks to a grant from the NW Clean Air Agency. Mr.
Adams inquired about the condition of the Preston and the museum building. Mr. Oakley said the interior
of the Preston is in good shape, leaks have been stopped, and the Museum Foundation may help with
painting the pilot house. He said the Carnegie building will get a façade upgrade later this year. Mrs.
Richardson inquired about the apparent 2011 cost overruns for Past Perfect software and exhibit
supplies. Mr. Oakley explained that the software cost moved from the IT budget to the Museum budget
and the exhibit supplies were actually a grant from state. Mrs. Richardson asked Mr. Oakley the value of
support from the Museum Foundation that never shows in the city budget. Mr. Oakley said the museum
receives $5-10K per year from the foundation, less now that investment returns are lower, and said the
museum also receives support from local service clubs. Mr. Petrish suggested that the City and Port
establish a fund to purchase one of the last remaining purse seiners when it comes on the market so it
can preserve a crucial part of the fishing history of Anacortes. Mr. Oakley agreed that commercial fishing
certainly has played a prominent role in the town's history and it would be wonderful to have and preserve
such a vessel but there would have to be ongoing funds to maintain it.
Library Director Cynthia Harrison reviewed the library's budget and said she has tried to keep spending at
2011 levels. She recapped the ongoing and expanded services provided by the library including children's
services, electronic books, Passport service and computer skills classes. She noted that the book budget
is flat for 2012 even though books cost more each year and said the library depends on the Friends of the
Library and the Library Foundation to help make up the difference. Ms. Harrison pointed out that software
maintenance expense will decrease in the future after Anacortes joins the Skagit library consortium. She
said natural gas expense was up due to the cold winter and that electricity rates will go up slightly but the
library continues to cut its electricity consumption. Ms. Harrison pointed out that the library is the biggest
computer user in the city so Data Processing/Network Pool is the biggest part of her operating budget.
Mr. Turner asked if the insurance line item is for the building. Ms. Harrison said yes, the building and
property. Mr. Adams commented on the steady decrease in postage costs. Ms. Harrison explained that
the library now mails a postcard or emails patrons about overdue books instead of sending first class
letters. Mr. Adams encouraged everyone to save funds by returning materials on time. Mrs. Richardson
praised the library for serving the community so well.
Fire Chief Richard Curtis reviewed the fire department budget. He said the department will operate at the
same level of service as the past few years with three fire stations. Chief Curtis noted that the department
operates out of both the general fund (for fire suppression) and the EMS fund (for emergency medical
services) at about a 35/65 split and began with a review of the general fund. He explained that
professional services covers the psychiatric exam for new fire fighters. Advertising covers volunteer
recruitment and bidding. Contracted services is for public safety testing. He noted that like other facilities
the stations have worked hard to reduce electricity consumption. He said the buildings are growing older
and there were some roof leaks and exterior issues that pushed repairs over budget in 2011. Mr. Geer
asked about the zero value line item for March Point Fire Station Lease. Chief Curtis explained that
expense moved to a different BARS number. He said the department tries to repair gear as much as
possible but gear and hoses eventually need replacement. Regarding fire hydrant maintenance, Finance
Director Steve Hoglund explained that in 2010 the City had to move that expense out of the water fund
and into the general fund and that for 2012 that expense has moved to a facilities line item in the public
works budget. Mr. Turner asked about the Callback line item. Chief Curtis explained that when two crews
Anacortes City Council Study Session Minutes October 10, 2011 1
are out on calls the department calls in additional crew members to staff a station in case another call
comes in. He said this amount is based on prior year history. Mr. Geer asked if the radio infrastructure
line item addresses upgrades in the radio system. Chief Curtis said no, this is just for the ongoing costs.
Mr. Petrish asked if the City radios work with all the different county agencies. Chief Curtis said they are
able to patch through. The Chief noted that the department is doing more training locally and on line to
reduce training costs. Mr. Turner asked if a regional fire authority would reduce training costs. Chief Curtis
said yes, they already share some costs but a regional fire authority would be even more efficient.
Chief Curtis then reviewed Ambulance Service Fund 110. He said the Interstation Computer Line is
actually for the Station 3 computer and paid for by a grant from the State. He said labor costs are
contractually controlled and that overtime and callback figures are based on historical data. Regarding
operating supplies he noted that the department bills patient insurance for transport and supplies. He said
the new line item for Mobile Data Terminals will purchase units for the three ambulances for mapping and
call recording. In the future the department will apply for a grant to add the same terminals to the rest of
the equipment. Chief Curtis explained that the City is under contract with Skagit County EMS commission
which levies taxes and then distributes the funds to the three service providers in the County but that
doesn't cover the costs of providing service. He said the City has Island Hospital invoice patients for
ambulance service but recovers only 58 cents for every dollar billed. The shortfall is funded from the
general fund. Mr. Petrish asked if the department plans to replace its oldest aid car. Chief Curtis said that
will be part of the next EMS levy. Mr. Geer inquired how the EMS fund can be balanced if there is a
shortfall in reimbursement. The mayor explained it is currently balanced out of general fund. He
elaborated that most medical units in the county get$1 M each but Anacortes gets less and said the City
is negotiating with the EMS Commission for a new contract to be more fair to Anacortes taxpayers. Mr.
Adams asked about staffing levels. Chief Curtis said there is one vacant position that will be filled next
year. Mr. Johnson questioned the photocopy costs and asked if there is a central copy center in the city.
Mayor Maxwell explained that typically each department needs a machine for daily use and that the city
solicits bids for leased machines. He noted costs have decreased the past two years. Mr. Hoglund added
that the copiers also serve as departmental printers and scanners which saves equipment costs.
Parks and Recreation Director Gary Robinson and his staff presented the Parks and ACFL budget (Fund
101). Mr. Robinson said his department manages the parks including Washington Park, recreation
programs, Grandview Cemetery, the community forestlands, and many other city facilities and medians.
Mr. Robinson said in contrast to many other jurisdictions the level of service in Anacortes is consistent
with the past several years. He thanked the mayor and Council for that support.
Parks and Forestlands Manger Jonn Lunsford addressed the ACFL budget. He said it includes two full
time and two seasonal summer staff. He noted the minimal operating supplies budget and said the
department goes out for grants if more funding is needed. He thanked the Anacortes Fire and Police
departments for their help in the ACFL which is not reflected in the budget. Mr. Adams inquired about
volunteer assistance. Mr. Lunsford said dedicated volunteers donate an estimated 1000 hours of
volunteer time per year for trail maintenance, non-native plant removal, litter patrols, etc. and he thanked
the community for that valuable support.
Recreation Manager Dustin South said the recreation programs budget also includes two full time staff.
He said operating supplies is the largest line item and covers balls, uniforms, prizes and event supplies
as well as facility use charges for gyms. Referencing the Kids-R-Best Fest line item, Mr. South said this
popular longtime annual event is supported by the recreation budget as well as by donations from service
clubs to keep the event entirely free for kids. He said Anacortes is rare among municipal recreation
programs in offering a sailing program and noted that storage fees will go back up in 2012 now that
Seafarers Park is open for the program again. Mr. Petrish asked what kids are charged to participate. Mr.
South said the fees of$30 for basketball and soccer ($50 for older kids who play in County leagues)
cover the costs of T-shirts, ribbons, etc. He said staff works hard to keep programs affordable for families.
He thanked the many volunteer coaches who also keep the costs low. Mr. Robinson added that the
Anacortes Parks Foundation offers scholarship funding for children who can't afford the fees.
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Mr. Robinson then reviewed the park facilities budget. He said staffing levels are the same as past years
though they may move costs between funds. Operating supplies and repair and maintenance cover
fertilizer, sand and infield dirt. He explained that Contracted Services, Arts Commission includes $2500
for the Arts on the Ave project which is actively seeking other funding sources. Mr. Robinson noted that
the program recently sold a sculpture and hopes that will become a source of funding for the
Commission. Mr. Petrish asked about the Causland Memorial Park restoration project. Mr. Robinson said
the Parks Foundation still has approximately$2,500-$3,000 for that work and there are a few ongoing
projects there but the bulk of the work is done. Mr. Petrish asked about the bandstand entrances. Mr.
Robinson said that will be part of a separate project to address the bandstand comprehensively. Mr.
Turner reported that the ACFL trails are in good shape and asked if the department has enough summer
help. Mr. Robinson said Anacortes is able to take better care of its trails than most agencies. Mr. Lunsford
noted the help from many volunteers and some grants.
Mr. Lunsford reported on the Grandview Cemetery budget (Fund 102). He said the cemetery shares staff
with other park facilities and has a full-time seasonal mower in the summer. Operating supplies include
irrigation parts. Mr. Petrish inquired about the status of the cemetery master plan. Mr. Robinson reported
that the plan is complete but as yet unfunded. Mr. Petrish asked if the road on the west side of the
cemetery can be repaired. Mr. Robinson said that will require removing the trees whose roots are
buckling the road. Mrs. Pickett suggested root pruning. Mr. Lunsford said the trees are too large for that
and for that location. Mr. Johnson asked why revenue includes only 85% of cemetery lot sales. Mr.
Robinson explained that the other 15%goes into an endowment fund for long term maintenance of the
cemetery.
Washington Park Manager Bob Vaux reported on the Washington Park budget (Fund 107). He said staff
is working hard to make the park self-supporting. Mr. Vaux said the expanded reservation policy this
summer was very successful and the department is budgeting $2500 for software to expand further and
allow on line reservations. Mr. Vaux said the software should pay for itself the first year. He clarified that
no new sites are being built, the goal is just to better utilize the sites that exist and increase customer
satisfaction. He said the park has one full-time employee and is open 365 days a year. He reported that
adding a live-in caretaker to the park in 2011 was a very positive step that involved no staff costs, only a
housing agreement. He said operating and maintenance supplies are a large share of the budget to
handle plumbing and trash. Mr. Vaux said the new boat lot fee machine installed in 2011 generated
additional revenue and freed up staff time. Mayor Maxwell stated that Washington Park gets no support
from general fund and complimented the park. Mr. Geer said the main field and picnic area is in hard
shape. Mr. Robinson said some drainage issues showed up during the wet winter and said staff would
like to develop a master plan for day use area. Mr. Adams asked how the restrooms are holding up. Mr.
Vaux said the lower restrooms that were built five years ago receive heavy use but are holding up well.
Mr. Robinson briefly reported that Fund 108, Parks Capital Expenditures, includes $5,000 for removing
non-native invasive plants on Cap Sante and Fund 112, Development Impact Fees, includes an operating
transfer of$25,000 to Fund 105 for work on the Guemes Channel trail.
Mr. Lunsford summarized the budget for the ACFL Maintenance Fund (Fund 113). He said revenue for
this fund includes Conservation Easement Program investment revenue which funds a portion of his
salary and the Education Program expense. State grants fund a seasonal employee for winter trail work,
the $1500 of operating supplies and the Heart Lake milfoil management plan.
Human Resources Director Emily Schuh reviewed the Human Resources budget which she termed very
lean. She reported that winning the Well City designation will save Anacortes 2% on health insurance
premiums for employees, spouses and dependents which is a significant savings. She thanked Lynn
Barber for her work on the Wellness program. Ms. Schuh reported that the City brought civil service
duties in house two years ago and that is working well. She said every two years the City has to do an
assessment center to assess fire and police department candidates who are preparing for promotion and
so budgeted for that in 2012. She noted nothing is budgeted for police negotiations because there is a
multi-year contract in place and said she is hopeful that an in house settlement with fire fighters will save
costs there. Mr. Geer asked who prepares the civil service assessments. Ms. Schuh said the City
Anacortes City Council Study Session Minutes October 10, 2011 3
contracts with an agency to develop the tests. Mr. Adams asked how the Wellness program saves the
city money. Ms. Schuh said studies show that every$1 spent on wellness activities saves $4 in future
medical costs which is what allows AWC to reduce premiums for Well City designees. Mrs. Richardson
asked why the City needs drug and alcohol testing. Ms. Schuh responded that all employees with
Commercial Drivers Licenses have to be in a random pool for testing. She said the City saves costs by
being in the AWC pool for that.
Planning Director Ryan Larsen reviewed the budget for the Planning and Building Departments in the
General Fund. He noted that$1500 for travel and training covers five Planning Department employees.
Assistant Planning Director Don Measamer then reviewed the budget for the Permit Center. He said the
Wetland Review line item is for projects that require third party review. He said Stream Habitat Monitoring
covers cases where the Critical Areas Ordinance requires monitoring of projects near streams to make
sure mitigation efforts were successful and to revise them if required. He said the Permit Center Training
and Travel budget is to keep Building Department staff current with codes and 2012 will involve training
because new codes are coming out. He said Membership Dues is for International Code Council
requirements and also re-certifications for the building inspector. He said Outside Attorney for Code
Enforcement has not seen much activity the past two years but three current enforcement issues may
incur costs. Mr. Measamer said the line item for Permit Record Archiving will continue the very successful
project to digitize address files to provide easy access for staff and the public. He said they are working
on commercial files now and also archiving new files and they come in. Mr. Turner encouraged digital
permit archiving to make information available to citizens.
Mr. Larsen then reviewed the budget for Community Development (Fund 180). He said the Development
Projects line item is for the Buxton Report discussed at a recent Council meeting. He noted that the DNR
Tideland Lease Payments have decreased because DNR re-evaluated all leases. Mr. Larsen advised he
will meet with DNR soon to start the process of renewing the lease that expires in 2016. He pointed out
the Signposts budget of$6,000 for more wayfinding signs, the budget for EDASC dues, and funding for
the 4th of July fireworks display at the same level as past years.
Finance Director Steve Hoglund reviewed the budget for the Finance Department including Information
Services. Mr. Hoglund noted State audit fees decreased last year and reported good news from the split
audit that was recently completed: the financial statement and grant review received an unqualified
opinion and the accountability review raised no issues. He said the Finance Department budget is
consistent with 2011. He noted that the Professional Services budget has been removed because the
department is bringing investment management in house since investment margins in the current market
don't justify that expense. Turning to the Information Technology budget, Mr. Hoglund reported that the
budget for Small and Attractive Tools & Equipment has been increased to cover mobile data terminals for
the police department. He noted that the Comcast fees for Internet Services are also increasing but said
the department will save some Eden software fees by eliminating modules and cutting out some
workstations.
Mayor Maxwell advised that there were no major changes in the executive or legislative budgets.
There being no further business, at approximately 8:35 p.m. the regularly scheduled Anacortes City
Council study session of October 10, 2011 adjourned.
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