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City Council Minutes—November 15, 2010
At 7:30 p.m. Mayor Maxwell called the regularly scheduled Anacortes City Council meeting of
November 15, 2010 to order. Roll call found present: Kevin McKeown, Erica Pickett, Brad Adams, Bill
Turner, Cynthia Richardson and Brian Geer. Nick Petrish was excused. Roll call was followed by the
Pledge of Allegiance.
Minutes of Previous Meeting
Mr. Adams moved, seconded by Mr. McKeown, that the minutes of November 1, 2010 be approved as if
read. Vote: Ayes— Pickett, Adams, Turner, Richardson and McKeown. Mr. Geer abstained. Motion
carried.
Citizen Hearings
No one present wished to speak on any item not already on the agenda.
Mayor/Council Communication
Proclamation: National GIS Day
Mayor Maxwell read a proclamation declaring November 17, 2010 to be National GIS Day in the City of
Anacortes. GIS Coordinator Rob Hoxie announced that he and Assistant City Engineer Eric Shjarback
would be visiting third grade classrooms on Tuesday and Wednesday presenting GIS information and
demonstrating GPS equipment. Mayor Maxell thanked Mr. Hoxie for the outreach. Mrs. Richardson
expressed appreciated for the City's GIS system and staff and said it helps Council understand issues to
have accurate maps and coordinated aerial photos.
Consent Agenda
Mr. McKeown moved, seconded by Mrs. Pickett, to approve the following Consent Agenda items. Vote:
Ayes—Adams, Turner, Richardson, Geer, McKeown and Pickett. 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 November 4, 2010 and November 10, 2010 are approved for payment as of this date
November 15, 2010.
Claims Warrants
November 2010: Warrant Numbers 58000 through 58176 in the total amount of$285,695.28
EFT
November 2010: Warrant Numbers 57990 through 57999 in the total amount of $2,491.44
Prewritten Claims
November 2010: Warrant Number 57989 in the total amount of $4,000.00
Payroll for November 5, 2010 in the total amount of$883,518.47
Warrant Numbers 35359 through 35403 in the total amount of$46,609.27
Direct Deposit Numbers from 37354 through 37551 in the total amount of$620,685.36
EFT Numbers from 1199 through 1204 in the total amount of$216,223.84
Cancelled Warrants
November 2010: Warrant Number 52375 in the total amount of $4.00
November 2010: Warrant Number 52454 in the total amount of $2.00
Anacortes City Council Minutes November 15, 2010 1
In the same motion Council accepted as complete the project to Replace Motor Control Centers in Water
Treatment Plant Intake Pump Station (09-036-WTR-001) by Seahurst Electric, Inc.
Cooperative Purchasing Agreement with City of Oak Harbor for Street Sweeper
Finance Director Steve Hoglund announced that Anacortes has a chance to piggyback on a bid to the
City of Oak Harbor for a street sweeper that is the same model Anacortes has planned to procure to
replace its 12-year-old street sweeper. Mr. Hoglund explained that state law allows this if Oak Harbor met
the advertising and bid requirements of Anacortes which was in fact the case. Mr. Hoglund added that the
purchase will be made using cash reserves already set aside so no debt will be incurred. Mr. Hoglund
asked Council to authorize the mayor to enter into an interlocal purchasing agreement with Oak Harbor.
Mr. Adams asked the advantage of a cooperative agreement. Mr. Hoglund explained that it saves
Anacortes the time and expense of advertising and ensures the City gets the model it wants. Mrs.
Richardson moved, seconded by Mr. McKeown, to authorize the mayor to enter into a cooperative
purchasing agreement with the City of Oak Harbor to purchase a new street sweeper. Vote: Ayes—
Turner, Richardson, Geer, McKeown, Pickett and Adams. Motion carried.
Community Development Block Grant ARRA Completion Presentation
Planning Director Ryan Larsen reported on the recently completed successful project to use $28,497 of
American Recovery and Reinvestment Act (ARRA) money received through the CDBG program to assist
a low income severely disabled Anacortes resident to live more comfortably, more efficiently and more
affordably. Mr. Larsen explained that the funds were administered by the Skagit County Community
Action Agency (SCCAA) which partnered with the Housing Authority Low Income Home Weatherization
and Repair Program to reduce reliance on heating assistance funding. They focus on homes owned by
low income seniors and disabled persons. Mr. Larsen said the program found that many homes were in
such a state of disrepair they cannot be weatherized. A severely disabled Anacortes resident who is a
regular recipient of home heating assistance was identified as being in dire need of home repair prior to
weatherization so SCCAA decided to spend the City's entire ARRA award on this home to provide a
greater benefit for long term efficiency and comfort for that home. The program put on a new roof,
insulated, re-plumbed, re-routed drainage, performed an asbestos check, reconnected the heating duct in
the crawl space, and provided ADA-compliant access and bathing facilities. The completed project cost
was$34,774.88 including change orders; Volunteer Corps donations covered the overage. Mr. Larsen
noted that this project provided jobs to local construction workers as well as increasing efficiency and
comfort for the resident. He said prime contractor DG Construction completed the project on time and
within budget and hired four subcontractors as well. Mr. Larsen concluded that the home is now ready for
a complete weatherization upgrade. Mrs. Pickett asked if there is a mechanism for recovering funds when
the home is sold. Mr. Larsen said no.
Water Treatment Plant Revenue Bond Sale
Mr. Hoglund presented a brief report on the November 10, 2010 sale of bonds for the Water Treatment
Plant Improvement Project. He said he and Mayor Maxwell traveled to Minneapolis for the sale on the
recommendation of the City's financial adviser. They allowed two days for the sale to achieve the best
pricing possible. Mr. Hoglund reported that the entire bond issue consisted of taxable Build America
Bonds for a 20-year term with a 35% interest subsidy from the federal government and an average 3.63%
total interest cost to the City over 20 years. Mr. Hoglund explained that the sale will net$40M in project
proceeds as well as $3.9M for the required debt reserve fund and enough to cover the debt issuance
costs. Mr. Hoglund noted that the State of California will be issuing $10 billion in RAN's and $2 billion in
revenue bonds this week and the bond market is expecting to issue a total of$40 billion by the end of
November so the City's timing was good to avoid that competition. Mayor Maxwell added that the City
received favorable financial ratings of AA-from Standard & Poor's and Al from Moody's. He said
everyone should be proud of that and that the fiscal prudence of the City has been rewarded. Mr.
Hoglund said the public has been asking if they can purchase these bonds but they are now all sold. Mr.
Turner thanked the Mayor and the financing team for all their hard work to achieve this success.
Ordinance: 2011 Budget
Mr. Hoglund explained that the last steps of the 2011 budget process were for Council to formally adopt
the budget via ordinance and to adopt a 1% property tax levy increase via resolution. He asked Council
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to approve an ordinance adopting the 2011 budget which was reviewed at the October 11, 2010 and
October 25, 2010 City Council study sessions and which received a public hearing at the regular City
Council meeting on November 1, 2010. Mr. Adams said he felt good about this lean, fiscally responsible
budget and noted that no one testified at the public hearing which indicates public support for the budget.
Mr. Adams moved, seconded by Mr. Geer, to approve Ordinance 2843 adopting the budget and salary
schedule for all municipal purposes and uses for the year 2011. Vote: Ayes— Richardson, Geer,
McKeown, Pickett, Adams and Turner. Motion carried.
Resolution: 2011 Property Tax Levy
Mr. Turner moved to adopt Resolution 1814 setting the City's year 2011 property tax regular levy
increase, calling it the fiscally responsible thing to do. Mrs. Pickett seconded the motion. She noted that
the cost of repairing streets is a concern, there's not much money in the budget for street repairs, and that
the approximately$42,000 raised by the levy increase will help address that. Mrs. Richardson said
Council is not insensitive to public concern about raising taxes during lean economic times and said that
$42,000 spread over the entire tax base is only a few dollars per taxpayer. Mayor Maxwell reminded that
Anacortes has the lowest tax millage by far of any city in Skagit County except for Lyman. Vote: Ayes—
Geer, McKeown, Pickett, Adams, Turner and Richardson. Motion carried.
There being no further business, at approximately 8:00 p.m. Mayor Maxwell adjourned the regularly
scheduled Anacortes City Council meeting of November 15, 2010.
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