HomeMy WebLinkAbout2020-10-05 City Council Minutes Approved Anacortes City Council Minutes — October 5, 2020
Mayor Laurie Gere called to order the Anacortes City Council meeting of October 5,2020 at 6:00 p.m.
Councilmembers Jeremy Carter, Anthony Young,Ryan Walters, Carolyn Moulton, Christine Cleland-McGrath,
Bruce McDougall and Matt Miller all participated in the meeting in absentia via video conference.
Announcements and Committee Reports
Mayor's Budget Message: Mayor Gere read her budget message for the 2021 budget. [The message is included
in its entirety at the end of the minutes for this meeting.] Finance Director Steve Hoglund then summarized the
highlights of the proposed budget and the schedule for consideration and adoption of the budget. Mr. Hoglund's
slide presentation was added to the packet materials for the meeting.
COVID-19 Update: Mayor Gere shared current case statistics for Anacortes, Skagit County, Washington State,
and the nation. The mayor compared Skagit County case counts to the metrics required to move to Phase 3 of
the Safe Start Washington Plan.
Public Works Committee: Mr. Walters and Mr. Young reported from the committee meeting earlier in the
evening. They summarized the discussion of the strategy for procurement for the outfall project, the transfer of
the South Fidalgo water system from Skagit PUD to City of Anacortes, and the waterline replacement schedule.
Public Comment
No members of the public wished to address the Council on any topic not on the agenda.
Consent Agenda
Mr. Miller moved, seconded by Mr. Young,to approve the following Consent Agenda items. The motion
carried unanimously by voice vote.
a. Minutes of September 28, 2020
b. Approval of Claims in the amount of: $2,427,684.26
The following vouchers/checks were approved for payment:
EFT numbers: 98281 through 98311,total$108,972.51
Check numbers: 98312 through 98324,total $2,316,711.40
Wire transfer numbers: 274244 through 274403, total $2,000.35
Closed Record Decision Hearing: CUP-2020-0001 -1015 18th St. Parking Lot CUP
Senior Planner Libby Grage presented an application from Madrona Real Estate Investors X LLC for a
conditional use permit for the construction of a private parking lot at 1015 18th Street, a parcel located partially
within the R4 zone where a CUP is required according to AMC Table 19.41.040. Ms. Grage's slides were added
to the packet materials for the meeting.
Ms. Grage summarized the project history and the packet enclosures. She explained the site plan, access routes,
and the landscaping plan. She summarized the few public comments received on the application,which
concerned stormwater impacts, traffic congestion, and documentation of the need for parking. Ms. Grage said
that all procedural requirements for a CUP had been met. She summarized the Planning Commission's
recommendation of approval with six conditions.
Mayor Gere invited parties of record to address the Council.No such parties wished to speak.
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Ms. Grage and Senior Engineering Technician Steve Lange responded to councilmember questions about the
stormwater treatment plan, about the reason(s) for the split vote on the Planning Commission recommendation,
and about potential future expansion of the parking lot under a separate CUP.
Mr. Walters moved, seconded by Mr. Miller,to approve Conditional Use Permit CUP-2020-0001 subject to the
conditions recommended by the Planning Commission. Vote: Ayes—Young,Walters, Cleland-McGrath,
Moulton, McDougall,Miller and Carter. Motion carried.
There being no further business, at approximately 7:10 p.m. the Anacortes City Council meeting of
October 5, 2020 was adjourned.
Mayor's Budget Message
October 5, 2020
Honorable City Council and Members of our Community:
I am pleased to present to you the City's 2021 proposed annual budget. This budget continues our
commitment to balance fiscal responsibility while meeting City Council and community priorities of public
safety, essential services, and infrastructure that allows for growth. Our world is evolving and changing,and
it is our responsibility as your City leadership to make the strategic decisions that will support sustainability,
technological progress, and preserve the quality of life that is the hallmark of Anacortes.
The City's financial roadmap for 2021 has been created in a time mired by economic uncertainty brought on
by the Coronavirus. I acknowledge this uncertainty and reinforce our commitment to creating a budget that
reflects our commitment to moving our community forward by maintaining and building essential
infrastructure and providing efficient, quality services while being conscientious of our financial position
and in compliance with RCW 35A.33.
Perhaps the most significant change in the 2021 budget is the transition from a biennial budget to an annual
budget. We are leveraging the best available information and revenue projections to establish this annual
budget.An annual budget will allow us to concentrate on the short-term economic indicators and be nimble
in our response to the uncertainty of the current economic condition.
Expenditure budgets must be balanced against revenue projections, and those projections for budget year
2021 are tempered against the effects of Coronavirus in 2020. Sales tax is one of the largest tax revenue
streams funding City functions. The City has seen an average monthly decrease in sales tax revenue of 11
percent,and in the recent 2 months we have seen a decreasing impact on sales tax revenues. To develop the
sales tax projections,we make assumptions based on available data. Our information indicates that we will
continue to improve throughout the remainder of the year, this means we project to see sales tax revenue
bounce back to be 3 percent higher than the prior year by 4th quarter.
The other two major tax revenue streams,property tax and utility tax, remain consistent compared to prior
years. Some other revenues streams that are dependent on user access, such as recreation and library fees,
were kept at moderate levels compared to prior years. As the economy reopens, we expect those revenue
streams to return to normal levels. In preparation for the 2021 budget we shifted property tax revenue to
the General Fund, so the funds can be administrated to ensure adequate resources are available to support
essential services.
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Early in my administration we adopted a fiscal policy that put on the books a rainy-day fund cash reserve in
the General Fund.That reserve fund increases or decreases as the City Budget grows or shrinks. For Fiscal
Year 2020, that reserve stands at over $5.4 million dollars and is available to support general operations.
Other operating funds have their own reserves as well;each of the Utility Funds have rainy-day reserves that
represent 10 percent of that Fund's annual expenditures and exceeds $2.2 million dollars for 2020.
Additionally, the Equipment Rental Fund has over $7.6 million dollars set aside for future equipment
replacement.
The financial impact of the Coronavirus and the City's commitment to investing in our technological
infrastructure guided the framework of this year's budget. Funding priorities have been reassessed and we
made tough decisions. My perennial focus is to provide services to every Anacortes resident and build the
infrastructure that is our foundation for a vibrant future for generations to come. It is the duty of your City
leadership to envision the needs of the City long term, making decisions that will benefit our community's
future. I look forward to working with you all on the 2021 budget and I affirm my resolve to employ sound
business practices that are efficient, effective, and responsive to the delivery of all City services.
Budget Landscape
This coming year many departments budgets will remain static. Due to the economic landscape and
projected decreases in revenue there are accompanying changes to departmental budgets. Several
departments are utilizing what we have called a "hold the line" budget in which they remain staffed at their
current level, continue to provide efficient high quality services, and move already established projects
forward—beyond that,budgets remain static from the previous year.
Public Safety
Anacortes Police and Fire Department
Our Police and Fire Departments have been on the front lines of the Coronavirus pandemic. The focus of
these departments has been to prevent and respond to crimes and emergency situations professionally and
with integrity. They have cultivated partnerships with other agencies and strengthened our community's
readiness and reliance.The City supports our public safety departments and remains committed to providing
staff with the tools and resources needed to keep our community safe.
In the 2021 budget we have budgeted to fully staff our Police Department and focus on investing in de-
escalation and bias training for all our commissioned police officers. To facilitate physical distancing and
provide a safe contactless way to process fingerprints the City, a new machine will be in place when the
Public Safety building reopens to the public. This will process the nearly 100 applications for fingerprinting
that are currently backlogged.
The Anacortes Fire Department experienced budget cuts in 2020 to account for the projected revenue losses
associated with the Coronavirus. The budgetary priority for 2021 will be to focus on reinstituting training
and education forgone in 2020.
Infrastructure
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Access Anacortes Fiber
The 2021 budget reflects a significant investment in Access,Anacortes Fiber Internet. In 2021,the City will
continue to expand broadband access by extending fiber to the premise to an additional 1,815 residents and
businesses. Reliable, affordable, and municipally managed high-speed internet service is a necessary and
important investment in our community.
The growth of Access,Anacortes Fiber Internet improves quality of life in our community. Widely available
broadband access supports job searches, online learning, telemedicine, and remote employment. Building a
broadband network for our community is like building the electric networks in the 1920s. It provides a
building block for a creative and innovative economy while establishing the platform for business
development and expansion.
Our daily lives are now driven by technology from our work, to how we meet and talk with medical
providers, to how we obtain education for our children and ourselves, and the way in which we safely stay
connected with our friends and families.The greatest asset to the City of Anacortes is each of you who build
our community.Building a fiber infrastructure in our community will position Anacortes as we move toward
an increasingly digital future.
Anacortes is bridging the digital divide, and the 2021 budget reflects this investment in Access Anacortes
Fiber as we work actively working toward our service goals. By the end of 2021, we project revenues will
offset our operational expenses. Staff is actively pursuing grant opportunities to offset costs associated with
the network expansion as we continue to support local businesses and residents.
Public Works
Public Works is the City's largest department and is responsible for managing the construction and
maintenance of streets,water, sewer, and stormwater lines; the production and distribution of water to the
region; purchasing and maintaining the City's vehicle fleet; maintenance, repair and construction of City-
owned buildings; and resource conservation.
The 2021 budget focuses on many capital improvements and maintenance of infrastructure.The Raw Water
Pipeline Project which drills a 2000 ft bore drill under the Skagit river has begun and will be a major focus
in 2021.In addition,the completion of the Clearwell project will provide redundancy to our Water Treatment
Plan, furthering the resiliency and security of our regional water system. These combined projects are
budgeted at$12 million dollars paid for with a Utility Revenue Bond.
Another priority for 2021 is the Waste Water Treatment Plan Outfall, which strives to eliminate or reduce
Surface Sewer Overflow and Combined Sewer Overflows. This project is budgeted at $20 million dollars.
The City is currently working with FEMA to apply for and obtain grant funding to assist with funding a
portion of this project.The balance will be paid with a Utility Revenue Bond.
My ongoing priority is to take care of our streets and in 2021 our pavement restoration program and roadway
improvements continues. Projects will alleviate safety concerns at 12th and Commercial and 32nd and M
Avenue. Estimates for the 12th and Commercial project currently are $3.3 million dollars, and 32' and M
project are at $1.3 million dollars. Both projects will be paid for with a combination of grants and local
dollars.
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The "A"Avenue Landfill cleanup project will be funded by Public Works' Solid Waste Fund. The City is
following the guidelines laid out by the Department of Ecology under the Model Toxics Control Act.
Essential Services
Planning, Community, and Economic Development
The Planning, Community, and Economic Development department will maintain focus on ongoing
projects in 2021. They will complete the update of the Critical Areas Regulations, and the Shoreline Master
Program.Another primary focus will be to work with the community to address concerns relating to the R4
Zone Height Bonus and updating Development Regulations as needed.
This department has been the keystone of success for telework at the City. Throughout this year the
department has been reviewing and issuing Single-Family Residential and Single-Family Residential
Alterations permits, surpassing the number of permits issued in 2019.To facilitate the anticipated continued
high levels of permit applications and increasing workload the budget reflects a commitment to funding
equipment that will facilitate telework for employees.
In February of 2020, City voters approved a 1/10th of 1% sales tax increase the proceeds of which would go
towards affordable housing, as outlined in RCW 82.14.530. Current estimates put that revenue at $536,000
for 2021. The projects will fund construction of housing by the Anacortes Housing Authority, and the
Anacortes Family Center. The issue of affordable housing is one that our community is taking on together
and it is important for the future of our community.
Public Defense and Municipal Court
The City employs a full-time public defender and legal assistant to meet the state-mandated standards for
delivery of public defense services. This budget maintains the commitment enabling this team to continue
to serve this community to the highest standards. Our Municipal Court will continue to serve the community
and through the newly created Community Court our criminal justice system will continue to explore
innovative alternatives to incarceration for those who need resources in our community. Skagit County
applied for a grant to offset the costs associated with Community Court and in the 2021 budget the City of
Anacortes has committed to a financial contribution of$7,202.18.
City Business
City Attorney's Office
The City Attorney's Office provides in-house counsel to City leaders and staff. The Legal Department works
to ensure the City meets the highest legal standards. A primary focus of this department in 2021 is to make
the Laserfiche Forms process interactive with the public to provide transparency and accessibility to the
public. Additionally, the City Attorney's Office will evaluate and build on City processes for responding to
public records requests to promote transparency and ensure compliance with information requests. As the
work in the City Attorney's Office continues to grow, the department will evaluate and assess opportunities
in future budgets to bring on an Assistant City Attorney.
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Human Resources
Our Human Resources Department is committed to developing and maintaining a professional, highly
qualified, and service-oriented workforce. That commitment translates to reaffirming the City's committed
to a culture of inclusion and diversity by providing staff with opportunities to engage in training about
understanding bias and building inclusivity in our organization.
The City is currently in the process of hiring for a Human Resources and Labor Relations Director. This
new Department Head will oversee labor relations with our four collective bargaining units. These contract
negotiations will begin shortly to address 2021 wages and then will transition to other items specified as part
of the 2020 bargaining agreement. In 2021, contract negotiations will commence with the IAFF 1537 and
the Fraternal Order of Police, our commissioned officers, and the Fraternal Order of Police, our non-
commissioned officers.
Information Technology
The Information Technology department supports the City's computing and networking requirements.
Throughout this year,they have played a pivotal role in keeping the City's business moving forward as many
staff transitioned to working remotely.Their adaptability, professionalism, and resilience are not often seen
by the public. The behind the scenes work of this department is crucial to the success of the City of
Anacortes. The 2021 budget includes funding for continuing services that provide Managed Detection and
Response to network intrusions on a 24/7 basis—keeping our data and information protected.They will be
updating our systems to transition to a hyperconvergence environment and the 2021 budget for IT also
includes a reorganization of the department and the hiring of a Systems Administrator. The department is
funded through interfund charges from the departments that use its services based on the number of
electronic devices the department has. The interfund charges pay for the department's operating costs as
well as the replacement charges for future computers.
Enrichment
Parks and Recreation
Our Parks and Recreation staff have been innovative and adaptable in the face of the many Coronavirus
restrictions,which inhibited in person services and programs. Outdoor recreation has become a crucial part
of assuring residents have access to safe socially distant opportunities for physical activity and that translates
into the budget through a continued commitment to trail maintenance and expansion.
The 2021 budget for this department reflects a commitment to completing the Depot Plaza Restroom and
as well as the continued improvements to the Washington Park Campground including replacing aging
electrical infrastructure. The budget also facilitates the initial clearing and construction of the Grandview
Cemetery Expansion. The City is also working with the Samish Nation and Department of Natural
Resources on ways to improve the health of Fidalgo Bay for salmon habitat.
Library
The Library is preparing for the eventual reopening of City facilities and getting back to serving the
community in person in 2021 (or sooner). Staff time will be focused on a safe reopening, continued
partnerships to support students, exploring opportunities to expand digital resources, and strengthening
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partnerships with the Friends of the Library and the Library Foundation whose support has been crucial
during these uncertain economic times.
Museum
The Anacortes Museum continues to focus on the high level of customer service and expansion of
engagement on their increasingly in-demand digital platform.The recent reopening of the Carnegie Gallery
has been a success that the City hopes to replicate in other City facilities as our community begins to reopen.
Conclusion
It is my fiscal responsibility to continuously evaluate City revenue and expenditures with a view of
maintaining a strong financial position while providing quality municipal services. Now,more than ever we
face challenges in our community.This budget has been created in the shadow of a devastating Public Health
crisis. I could not be prouder of the City's response to this crisis. This budget reflects our unwavering
commitment to serving each and every resident to the highest standard and protecting the strong fiscal
position of the City. We commit to providing our front-line public safety professionals with the resources
and tools they need, continuously maintaining and improving our public infrastructure and facilities, and
most of all—assuring that every resident enjoys the quality of life that is the hallmark of our community.
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