HomeMy WebLinkAbout2010-01-19 City Council Minutes Approved City Council Minutes—January 19, 2010
At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of January 19, 2010 to order. Roll call
found present: Kevin McKeown, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson
and Brian Geer. Roll call was followed by the Pledge of Allegiance.
Minutes of Previous Meeting
Mr. Petrish moved, seconded by Mr. McKeown, that the minutes of January 4, 2010 be approved as if
read. Vote: Ayes— Petrish, Pickett, Adams, Turner, Richardson, Geer and McKeown. Motion carried.
Citizen Hearings
No one present wished to speak on items not already on the agenda.
Mayor/Council Communication
Mayor Maxwell asked Council to confirm his reappointment of Sarah Nichols to the Parks & Recreation
Advisory Board for a four-year term. Mr. McKeown moved, seconded by Mr. Petrish, to confirm the
appointment. Vote: Ayes— Pickett, Adams, Turner, Richardson, Geer, McKeown and Petrish. Motion
carried.
Mr. Geer thanked the community for generously supporting relief efforts in Haiti and announced that the
Red Cross will host an informational fundraiser Friday, January 22, at 6:00 p.m. at the Senior Activity
Center and will accept donations in front of both local markets over the weekend.
Mrs. Pickett announced the winner of the 2009 AutoMagic competition to reduce single-occupant
automobile trips. Last year Skagit Beat the Heat won without much competition but in 2009 Westminster
Presbyterian Church came in a close second. Together the two groups saved over 21,000 miles by ride
sharing, walking, biking and taking public transportation. Mrs. Pickett encouraged the community to log
miles saved in 2010. Mayor Maxwell announced that the winning group gets to allocate $1000 to a City
program of its choosing; last year Beat the Heat chose the new City Community Garden on 29th Street.
Mr. Adams reminded the community of the monthly work parties in the Anacortes Community Forest
Lands. He reported that there were a record 27 volunteers at the January 6 work party to pull invasive
non-native ivy at base of Mt. Erie. Forty sacks of ivy were removed as well as trash. Mr. Adams called the
Saturday events a fun way to work with others for the benefit of our forestlands and invited residents to
contact ACFL Ranger Dave Oicles in the Parks Department for more information. The next work parties
will be held February 6 and March 6, 2010.
Mr. Adams announced the City Council subcommittee assignments for 2010-2011:
Public Safety Committee: Kevin McKeown, Nick Petrish, Brad Adams
Public Works Committee: Brian Geer, Brad Adams, Nick Petrish
Port/City Liaison Committee: Cynthia Richardson, Bill Turner, Erica Pickett
Planning Committee: Bill Turner, Brian Geer, Cynthia Richardson, alternate Erica Pickett
Personnel Committee: Cynthia Richardson, Kevin McKeown, Erica Pickett
Parks and Recreation Committee: Kevin McKeown, Nick Petrish, Brad Adams
Finance Committee: Bill Turner, Brian Geer, Erica Pickett, alternate Kevin McKeown
Traffic Safety Committee: Bill Turner, Erica Pickett, Nick Petrish
Mr. Petrish reported that the rocky beach at the north end of 0 Avenue that has recently been improved
by the Port of Anacortes is a very nice public space and that the sandy beach at N Avenue Park is only a
block away to the west. He encouraged residents to visit these facilities.
Mr. Turner expressed a safety concern about bicycles riding against traffic. He reminded the community
that bikes are supposed to follow traffic rules including following the flow of traffic and signaling turns. Mr.
Turner encouraged bicycle use but asked riders to observe traffic laws in order to preserve public safety.
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Mr. McKeown reminded the community that pedestrians have the right of way in crosswalks. He noted
that drivers don't always yield but are required to by law.
Unfinished Business
Continued Public Hearing: Establishing a Residential Targeted Area (in Central Business District) for
Newly Proposed Chapter 15.45 Urban Centers Ordinance
Planning Director Ryan Larsen asked Council to take additional public testimony on the establishment of
the residential targeted area and take public comment on the proposed Anacortes Municipal Code
Chapter 15.45 for the new Urban Centers development ordinance. Mr. Larsen recommended closing the
public hearing after this evening's testimony. A draft ordinance was included in the packet for Council's
review. Mr. Larsen summarized the conditions of the ordinance and clarified that low-income housing is
only a proposed condition of the 12-year exemption, not the 8-year exemption. He proposed two
additional changes to the draft Chapter 15.45 language in the packet.
• Page 4, Item E.6: "... must be LEED certifiable as confirmcd by a LEED certified independent
third party reviewer or must be Built Green certified, or an equivalent alternate as determined by
the City Building Official.
• Page 4, Item G.1: "The application fee to the city shall be $1000 for up to four units ... "
At approximately 7:45 p.m. Mayor Maxwell invited testimony at the ongoing public hearing. Hal Rooks,
1219 10th Street, asked that the proposed tax incentives not result in a loss of historic buildings in the
CBD. Mr. Rooks also asked for design standards to be part of the ordinance to help preserve the unique
character of the downtown area and make new construction meld with existing buildings. Mayor Maxwell
noted written correspondence on this issue was also received and included in the Council packets. No
one else wishing to testify, at approximately 7:47 p.m. Mayor Maxwell closed the public hearing.
Mrs. Richardson reported that the Planning subcommittee had discussed this topic at length and felt that
two issues, establishing design guidelines and expanding the program outside the CBD, might both need
addressing but that doing so would take time and careful analysis; the subcommittee recommended
moving the ordinance forward. She noted that design guidelines may be addressed in the near future
aside from this program and that both issues can be addressed after some experience with the new
ordinance. Mr. Geer asked when design guidelines might come into effect and if new projects were likely
to start before then. Mrs. Pickett responded that the design guidelines included in the latest round of
Comprehensive Plan amendments already provide a good start and that additional guidelines could be
developed in the next year. Mr. Turner agreed with Mrs. Pickett and said that there is urgency to move
the ordinance forward to provide economic stimulus and protect the downtown business environment. He
stated that the ordinance may provide interested parties an incentive to put design guidelines in place in
the next few months. Mr. Turner suggested that the ordinance can help make downtown denser, better
connected and a better place for business and for people to live.
Mr. Adams reiterated that under the proposed ordinance the City still collects the same amount of
property tax but the burden shifts among taxpayers. Mr. Turner clarified that if the ordinance spurs new
construction, the city's property tax base actually increases immediately for the land and first floor
commercial/retail space and increases after 8 years for the new residential units above that. Additionally
the retail sales tax collected will likely increase if new business space is created. Mr. Turner noted that
every city he has spoken with that has implemented this program has raved about the results. Mrs.
Richardson agreed that the taxable, commercial portion of a project may offset any potential additional
property tax burden on existing property owners. Mayor Maxwell referred to an analysis by Finance
Director Steve Hoglund that predicts a net gain in City tax revenue if the ordinance goes into effect and
reminded that statistically downtown residents contribute even more to a City's tax base than downtown
employees.
Addressing historic preservation, Mrs. Pickett stated that under the proposed ordinance small business
owners who own their buildings can add value to their buildings; in other cities it has not lead to tearing
down existing buildings. She reminded that demolition permits are required before anything can be torn
down. Mr. McKeown suggested incentives could be implemented for preserving historic buildings. Mrs.
Pickett underscored Mayor Maxwell's point that taxpayers will benefit from the ordinance because adding
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residential units downtown adds tax base, quality of life and retail opportunities to the CBD. Mr. Larsen
highlighted that the ordinance requires each applicant to enter into a contract that Council must approve
by resolution so Council retains ultimate control of each project. Mr. McKeown expressed his support for
the ordinance and for developing design standards to go with it to protect historic buildings and character.
Mr. Petrish referred to a letter from a constituent concerned about building low income housing
downtown. Mr. Petrish said the ordinance actually targets moderate incomes and those who can afford
new housing. Mr. McKeown noted affordable housing is not the same as low income housing and that
there is a benefit to providing housing for those who work in our retail and commercial businesses. Mr.
Petrish said that White Rock, BC has an extensive district with residential units above ground floor retail
space and it makes for a very vibrant community there. Mayor Maxwell reminded that the Comprehensive
Plan calls for making downtown more walkable which this ordinance is designed to do; it would allow
more people to live as past Anacortes generations did, able to walk from their downtown homes to local
stores. Mr. Adams concluded that the proposed ordinance is a good return on the City's investment and
hoped it would give some incentive to builders to revitalize downtown. Mr. Turner moved, seconded by
Mr. McKeown, to establish a residential targeted area equivalent to the existing central business district
(CBD). Vote: Ayes—Turner, Richardson, Geer, McKeown, Petrish, Pickett and Adams. Motion carried.
Mr. Turner moved, seconded by Mrs. Pickett, to approve Ordinance 2814 creating a new Chapter 15.45
of the Anacortes Municipal code to implement Chapter 84.14 RCW to provide for exemption for ad
valorem property taxation for qualifying multi-family housing in a designated residential target area within
the city, including the two staff-recommended changes recorded above. Vote: Ayes— Richardson, Geer,
McKeown, Petrish, Pickett, Adams and Turner. Motion carried.
Consent Agenda
Mrs. Richardson moved, seconded by Mr. Geer, to approve the following Consent Agenda items. Vote:
Ayes—Geer, McKeown, Petrish, Pickett, Adams, Turner and Richardson. Motion carried.
Approval of Vouchers/Cancellation of Warrants
Council voted unanimously that the following vouchers/warrants audited and certified by the City's
Auditing Officer (Finance Director) and subsequently reviewed and approved by the Council Finance
Committee on January 7, 2010 and January 14, 2010 are approved for payment as of this date January
19, 2010.
Claims Warrants
January 2010: Warrant Numbers 54003 through 54192 in the total amount of $1,191,603.54
EFT Claims
January 2010: EFT Numbers 53995 through 54002 in the total amount of$2,518.28
Payroll for January 20, 2010 in the total amount of$524,847.74
Warrant Numbers 34417 through 34456 in the total amount of$42,252.89
Direct Deposit Numbers from 33802 through 33971 in the total amount of$309,049.66
EFT Numbers from 1077 through 1084 in the total amount of$173,545.19
In the same motion Council:
Accepted as Complete the Guemes Channel Trail Phase I Construction project (05-071-TRN-003) by
Strandberg Excavation & Commercial Construction, Inc.;
Moved per AMC 12.50.060(F) not to refer Petition to Vacate a Portion of S Avenue and Portions of
Market Street (Port of Anacortes) identified in Resolution 1793 to the Board of Adjustment;
Adopted Ordinance 2813 amending 2010 Budget Ordinance 2807 adopted November 2, 2009;
Approved Street Fair Application for Shipwreck Days on July 17, 2010; and
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Approved Street Fair Application for March for Meals on March 20, 2010.
Public Hearing: Petition to Vacate 11th Street West of B Avenue (Ortman/Wynn)
Mayor Maxwell continued this item to a future date.
Contract Award: Financial Consultant Susan Musselman
Finance Director Steve Hoglund requested Council approval to contract with Susan Musselman of
DashenMusselman for bonding support services for the upcoming Water Treatment Plant expansion. Mr.
Hoglund recommended this step to ensure that this very large project is funded to the City's maximum
benefit. The proposed contract has a not-to-exceed cap of $60,000 but is expected to be closer to
$52,000. Mr. Hoglund introduced Susan Musselman to answer questions from Councilors. Ms.
Musselman noted that many jurisdictions use her firm to support their financing needs. They would
represent the City as an independent expert in dealings with the underwriter. Mayor Maxwell asked Ms.
Musselman to discuss how her services add value. She explained that they can help negotiate the
compensation to the underwriter and the interest rate to get the City the best deal. Mr. Turner expressed
support for the contract. In response to a query from Mr. McKeown, Ms. Musselman said she has been in
this business for 27 years and that her firm has represented Skagit County, La Conner, Mt. Vernon, the
Port of Anacortes and entities around the state including Tacoma, Walla Walla, five state universities and
the State Treasurer's office, among others. Mr. Geer moved, seconded by Mr. Turner, to authorize the
Mayor to enter into the contract. Mr. Petrish noted the Anacortes School District contracted for the same
services on a past bond issue and it was a good move. City Attorney Brad Furlong reported that he
worked with Ms. Musselman on the financing for McIntyre Hall among other projects and has been very
pleased with her work. Vote: Ayes— McKeown, Petrish, Pickett, Adams, Turner, Richardson and Geer.
Motion carried.
Resolution: Fixed Asset Policy
Mr. Hoglund explained that the proposed resolution updates the City's fixed asset policy established in
2001 to reflect current practice. Mr. Adams moved, seconded by Mr. McKeown, to adopt Resolution
1794. Vote: Ayes— Petrish, Pickett, Adams, Turner, Richardson, Geer and McKeown. Motion carried.
There being no further business, at approximately 8:25 p.m. Mayor Maxwell adjourned the regularly
scheduled meeting of January 19, 2010.
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