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City Council Minutes—December 7, 2009
At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of December 7, 2009 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. McKeown moved, seconded by Mr. Adams, that the minutes of November 16, 2009 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 presented the Mayor's Award of Merit to Anacortes Police Officer Del Farrell who has
been the City's Crime Prevention Officer for the past two years and has provided service above and
beyond the call of duty to the community, particularly to its youth. Police Chief Bonnie Bowers thanked
the community for its support during the past tough week for law enforcement officers in Washington.
Recreation Coordinator Nicole Johnston thanked all the volunteers who helped with the 6th annual
Breakfast with Santa this past weekend, especially pancake flipper Stan Jewell. Nearly 400 people
attended.
LaVerne Lamoureux from the U.S. Census Bureau spoke about the importance of counting all the
approximately 16,800 residents of Anacortes during the 2010 census. Grants and federal funding as well
as legislative representation are based on census data. She thanked the City for its support in this effort.
Ms. Lamoureux explained that in March every household will receive a census form in the mail; a second
form will be mailed if responses aren't received in three weeks. After that census takers will call and visit
homes to follow up in cases where responses have not been received. Community groups will assist in
counting the homeless. Translation assistance and Q&A centers will be available to help citizens. Mr.
McKeown asked about the repercussions of undercounting. Ms. Lamoureux responded that census data
qualifies cities for federal funds and emergency services from FEMA, determines legislative seats, and
sometimes companies use it to site their businesses.
Mrs. Richardson congratulated the community on the great holiday parade on December 5.
Unfinished Business
2009 Comprehensive Plan and Development Regulation Amendments: Planning Director Ryan Larsen
asked Council for recommendations on all the proposed 2009 Comprehensive Plan and Development
Regulation amendments, proposed rezones, and proposed comprehensive plan map amendments.
Based on prior direction from Council, staff prepared a revised December 1, 2009 memo providing
recommendations for each of the proposed items. Mr. Larsen clarified that staff recommended continuing
Exhibit 25 until the Shoreline Master Program is approved this summer to ensure consistency of language
between the documents. Mr. Geer expressed support for the amendment package that was developed
after many meetings and moved, seconded by Mrs. Richardson, to approve the package per the
recommendations in Mr. Larsen's revised December 1, 2009 memo. Mrs. Richardson observed that the
staff recommendations are consistent with Council's prior direction on each issue. Vote: Ayes— Pickett,
Adams, Turner, Richardson, Geer, McKeown and Petrish. Motion carried. Mr. Larsen stated he will bring
back an ordinance solidifying this action for the City Council Consent Agenda at the December 21, 2009
or January 4, 2010 regular meeting.
Consent Agenda
Mr. Turner moved, seconded by Mr. McKeown, to approve the following Consent Agenda items. Vote:
Ayes—Adams, Turner, Richardson, Geer, McKeown, Petrish and Pickett. Motion carried.
Anacortes City Council Minutes December 7, 2009 1
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 19, 2009 and December 3, 2009 are approved for payment as of this date
December 7, 2009.
Claims Warrants
November/December 2009: Warrant Numbers 53473 through 53675 in the total amount of
$1,302,720.95
EFT Claims
November/December 2009: EFT Number 53472 in the total amount of$112.00
Prewritten Claims
November 2009: Warrant Number 53471 in the total amount of$12.00
Payroll for November 20, 2009 in the total amount of$526,436.99
Warrant Numbers 34240 through 34279 in the total amount of$39,293.24
Direct Deposit from 33064 through 33237 in the total amount of$315,764.35
EFT Numbers from 1053 through 1058 in the total amount of$171,379.40
Payroll for December 4, 2009 in the total amount of$759,048.73
Warrant Numbers 34280 through 34328 in the total amount of$58,400.68
Direct Deposit from 33238 through 33434 in the total amount of$522,938.04
EFT Numbers from 1059 through 1064 in the total amount of$177,710.01
Cancellation of Warrants
Claims Warrant Number 53471 in the total amount of$ 12.00
Claims Warrant Number 48669 in the total amount of$ 10.59
Claims Warrant Number 45955 in the total amount of$ 12.00
Claims Warrant Number 44869 in the total amount of$ 62.11
Claims Warrant Number 47416 in the total amount of$ 20.00
Claims Warrant Number 53171 in the total amount of$104.90
Claims Warrant Number 53268 in the total amount of$ 71.40
In the same motion Council:
Adopted Ordinance 2808 vacating a right-of-way of certain portions of Commercial Avenue, Lot 2,
Section 30, Map of Anacortes, Records of Skagit County, Washington (919 37th Street- Michaud); and
Adopted Resolution 1792 setting a Public Hearing date of January 4, 2010 for the Petition to Vacate
Channel Landing 9-Lot short plat.
2010 Community Development Block Grant(CDBG)Action Plan
Mr. Larsen opened the public comment period and application acceptance for the 2010 CBDG action
plan. It will remain open until February 1, 2010. The City is looking for suggestions how to spend this
grant money to serve low to moderate income populations in Anacortes. The New Wilson Hotel, Gentry
House, Skagit County Housing Authority and Skagit County Food Bank have all received money through
this program in the past. The City could use it to build curb, gutter and sidewalks to serve low income
housing, to provide ADA curb cuts and ramps, or as seed money for start up businesses. Mr. Larsen
projected a total of approximately$110,000 will be available. The money can be used for capital projects
or staffing but not land purchases. The 15% maximum that can be used for staffing has already been
allocated to Skagit County Community Action Agency. Mr. McKeown asked why there have been so few
proposals. Mr. Larsen said the administration of the program is fairly complicated. No one present wished
to speak. Mayor Maxwell encouraged the community to contact staff with proposals until February 1.
Anacortes City Council Minutes December 7, 2009 2
Public Hearing: Establishing a Residential Targeted Area (in Central Business District)for Newly
Proposed Chapter 15.45 Urban Centers Ordinance
Mr. Larsen advised that the proposed course of action at the current meeting was for Council to hold a
public hearing for the establishment of a residential targeted area and to take public comment on the
newly proposed Chapter 15.45 Urban Centers Ordinance. Mr. Larsen explained that the proposed new
chapter to the Municipal Code would provide property tax incentives for new or rehabilitated multi-family
housing development within the targeted area. The proposed ordinance provides an 8-year exemption for
residential development or rehabilitation in the target zone and a 12-year exemption if it includes at least
20% affordable housing. RCW 84.14 requires a public hearing to establish residential targeted areas and
that Council also adopt and implement standards and guidelines for accepting projects into the program.
This concept was discussed at two prior City Council study sessions. Mr. Larsen said Planning
Commission has been asked to provide direction on seven items, including possibly extending the target
area all the way to 12th Street(outside the CBD)and developing design standards.
Mr. Larsen introduced Kelly Briggs of the Skagit County Assessor's Office to explain how the incentive
program would work. Ms. Briggs noted that Anacortes would be the first city in Skagit County to
implement this program. Under the RCW, the tax exemption applies to new or rehabilitated residential
units and only to the value of the new construction or the rehabilitation; the land is still taxed fully as is the
existing building. The City must provide the property owner a conditional certificate of acceptance before
the tax exemption can go into effect, which begins in the tax year following receipt of the certificate. The
exemption lasts 8 or 12 years. After that the property is taxed at full market value. If during the 8 or 12
year exemption period the units change from a qualifying use to some other use, the landowner must pay
back all the property taxes saved to that point plus interest and penalty. However, as long as the use
doesn't change the units continue to qualify for the tax exemption even if they are sold during the
exemption period. Ms. Briggs described the program as a tax shift: it doesn't decrease the total property
tax collected, other taxpayers just pay a little more in return for enjoying the benefits that the residential
development brings to the whole town. Mr. McKeown asked for clarification on whether only the City's
share of the property tax or the entire tax bill for the property is affected. Ms. Briggs replied that the entire
property tax bill for qualifying properties is affected. Mrs. Richardson noted that overall the community
may reap a net tax revenue benefit even with the temporary property tax exemption because the new or
rehabilitated building will typically generate more tax revenue than if it had not been (re)developed and
will eventually return to the tax rolls at full value.
Mayor Maxwell opened the public hearing on the proposed Chapter 15.45 Urban Centers Ordinance and
on the proposed targeted area
Al Johnson, 1201 4th Street, spoke representing the Anacortes Downtown Plan Association which
opposes the ordinance as drafted but might be interested if some changes were made. Mr. Johnson
called the program a tax break for developers at the expense of the rest of the community. He stated that
the program should include mandatory affordable housing and that the targeted area should be outside
the CBD. He would not like to see a gentrified condominium community downtown. He suggested the
target area would be better in the"shoulder" areas between N and 0 Avenues and Q to R Avenues and in
the R4 zone from 10th to 22nd Street.
Mitch Everton spoke on behalf of the Chamber of Commerce which supports the proposed ordinance. Mr.
Everton noted that the program has revitalized downtown areas in other cities in the state that have used
it. He urged the Council to adopt and the community to support the proposed ordinance.
Susan Rooks, 1219 10th Street, urged Council not to encourage mindless demolition of buildings in the
historic commercial core. She said incentives should encourage rehabilitation or adaptive re-use of older
buildings. Ms. Rooks also suggested that tax incentives should be linked to design standards that are in
keeping with the existing historic downtown.
Sharene Elander, 1406 8th Street, echoed Ms. Rooks. Ms. Elander asked how great is the need for low
income housing. She said that after the 8-12 year tax exemption is over, the developer can sell the low
Anacortes City Council Minutes December 7, 2009 3
income units at higher prices again. She said Old Town's viability would completely change if single story
buildings were replaced by multistory.
Tom Griffin of Anacortes spoke in support of the discussion and said tax incentives are beneficial in
encouraging business.
Dale King, 911 6th Street, spoke in support of the ordinance but said he would like to see very distinct
design standards be part of the ordinance due to the current eclectic style of the downtown. Mr. King also
urged Council to make sure there is plenty of parking to accommodate the increased number of people
and cars downtown.
No one else wished to testify. Mayor Maxwell left the public hearing open. The topic was continued to
January 2010 for further discussion and action. Mayor Maxwell urged continued comment from the
community. Mrs. Richardson suggested that the draft ordinance might benefit from revisions based on the
first round of public input. Mrs. Pickett said the parking requirement on page 4 sounds as if it has a
specific site in mind and wanted to know why it calls for parking in garages or underground which is more
expensive. Mr. Turner said that the parking idea came from Bellingham where the program has been very
successful but could be altered for Anacortes.
Contract Awards: City Prosecutor and Public Defender for 2010
Human Resources Director Emily Schuh recommended that the City issue a contract for City Prosecutor
for 2010 to Craig Cammock. Ms. Schuh reported that eight applications were received for the position and
the current prosecutor did not apply. Mr. Cammock's proposed cost is similar to what the City has been
paying Steve Mansfield for similar services; that contract expires at the end of 2009. Ms. Schuh
introduced Mr. Cammock who thanked the Mayor, City Council and Chief Bowers for the opportunity to
serve the city. In response to a question from Mr. McKeown, Mr. Cammock advised that he has been a
prosecutor since 1993. Mr. Turner moved, seconded by Mr. Geer, to approve the contracts presented for
both City Prosecutor and Public Defender. Vote: Ayes—Turner, Richardson, Geer, McKeown, Petrish,
Pickett and Adams. Motion carried. Mr. Petrish observed that Council was fully briefed on both applicants
and has selected two great candidates. Mrs. Richardson thanked Steve Mansfield and Gerald Osborn for
their years of service to the City as City Prosecutor and Public Defender respectively. Ms. Schuh
introduced Glen Hoff who will be the new Public Defender. Mr. Hoff thanked the Mayor and City Council
for the opportunity to represent indigent defendants in Anacortes. Mr. Adams noted that Mr. Hoff must be
available by phone 24/7 for defendants. Mr. Hoff confirmed that he has full facilities for doing so and has
provided that same level of access since 1999 for the Skagit County Public Defender. Mayor Maxell
thanked Ms. Schuh and Mr. Hoglund for coordinating the selection process.
2009 Year End Budget Amendment
Finance Director Steve Hoglund presented Ordinance 2809 to amend the 2009 budget in four funds:
Arterial Street Fund (105)for the Commercial Avenue roundabout, Public Library Fund (103)for
additional part time employee costs that will be partially offset by the Library Foundation, Washington
Park Fund (107)which had higher than expected operating costs and revenues, and Community
Development Fund (180)to recognize CDBG grant funds. In response to a question from Mrs. Pickett, Mr.
Hoglund explained that the CDBG funds were spent on sidewalks in front of the new Anacortes Family
Shelter and ADA accessibility on 0 Avenue. Mr. Turner asked if the roundabout change orders are final
yet; Mr. Hoglund said not quite. Mr. Petrish said he was pleased to note that Washington Park had more
camping and boating activity every month than in the same month the prior year. Mrs. Richardson moved,
seconded by Mr. Petrish, to approve the budget amendment. Vote: Ayes— Richardson, Geer, McKeown,
Petrish, Pickett, Adams and Turner. Motion carried.
Public Hearing on Petition to Vacate 11th Street West of B Avenue -Ortman/Wynn
Mayor Maxwell announced that this item would be continued to Tuesday, January 19, 2010.
Task Order for Pump Station 13 Design
Public Works Director Fred Buckenmeyer asked Council to approve a task order to HDR Engineering, Inc.
for the design of improvements to sanitary sewer Pump Station 13 in Skyline. It was built in 1992 and
Anacortes City Council Minutes December 7, 2009 4
needs to be rebuilt to use pumps and parts currently available on the market. Mr. McKeown moved,
seconded by Mr. Turner, to approve awarding the task order for$77,489 to HDR. Vote: Ayes—Geer,
McKeown, Petrish, Pickett, Adams, Turner and Richardson. Motion carried.
Contract Amendment for Water Treatment Plant Upgrade Final Design
Mayor Maxwell observed that the Water Treatment Plant upgrade is the largest capital project the City
has ever undertaken and advised that the City will be consulting with Mark Estvold for oversight
assistance during the process. Mr. Buckenmeyer asked Council to approve a Task Order in the amount of
$2,549,805 to HDR Engineering, Inc. to complete Phase 3B, the final design for the Water Treatment
Plant upgrade. Final design documents could allow putting the project out to bid as early as April 2010. A
detailed overview of the project was provided at the City Council study session on November 23, 2009.
Mr. Petrish noted that water supply is an international issue and water is an increasingly valuable
commodity. Mr. Geer moved, seconded by Mrs. Pickett, to approve the Task Order. Mr. Turner asked
what the total cost of the project is projected to be and why the design is so expensive. Mr. Buckenmeyer
reported that the current engineer's estimate is $50M for hard construction costs, $65M total, based on
30% design drawings. Mr. Adams asked where the funding for this very expensive project will come from.
Mayor Maxwell pointed out that the City ratepayers will only pay about 9% of the cost as the rest of the
water is sold to other regional customers and the bonds will be repaid proportionally by water customers
through water rates. Mrs. Richardson reminded that the original water plant was expensive in its time and
the City needs to plan for and invest in the future just as prior generations did. Vote: Ayes—McKeown,
Petrish, Pickett, Adams, Turner, Richardson and Geer. Motion carried. Mayor Maxwell observed that this
is the single largest piece of capital infrastructure providing for economic development in two counties.
There being no further business, at approximately 8:50 p.m. Mayor Maxwell adjourned the regularly
scheduled meeting of December 7, 2009.
Anacortes City Council Minutes December 7, 2009 5