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Home My WebLink About2007 City Council MinutesJAwuAnv2'2007 The regularly scheduled January 2.2OO7meeting was cancelled. /#7:3O p.m., Mayor Maxwell called the regularly scheduled meeting of Tuesday, January lG. 2007 to order. Roll noU found present Nick Pethsh, Erica Pickett, Brad Adomno, Bill Turner, and Cynthia Richardson. Absent: Loren Hoboy and Brian Geer. Roll call was followed by the Pledge of Allegiance. Minutes ofPrevious Meetinq Mrs. Richardson moved, seconded by K8c Turner to approve the minutes of December 4, 2006. December 18. 2006. and January 8, 2087 as if read. Vote: Ayes— Pathoh, Pk:kutt, Adams, Turner. and Richardson. Motion carried. CitizeuHearinqm No citizens present wished to testify on matters not on the agenda. 'Mayor/Council Comummun ' Mayor Maxwell announced that 2008 marks the Association of Washington Cities (AWC) 75 thannivensnry. |ncelebration ofthis event, AWC will create a book documenting the important events of AWC's history; the book will also celebrate Washington's cities and towns. |nthat regard, the City nfAnanorteahas been asked to name the top three events over the last 75 years that shaped An000rtoa. Construction of the refineries, Fiahernnann Pac, and the Plywood K8iU, were offered for consideration; coordination with historian VVoUia Funk was also suggested. Additional ideas are vva|conno and should be directed to the Mayor's office prior toFebruary um. Mayor Maxwell announced that this meeting will be continued to Monday, January 22nd at 3:30 p.m. in order to conduct a site visit in conjunction with (1) easement acquisition for public access to the Guemes Channel Trail, and (2)the Paulson easement relinquishment request. Maps will beprovided. The Mayor then brought up a report regarding a potential meeting with a representative from Berk & Associates; the Mayor said that the Berk Economic Study/Phase /incomplete. The Mayor clarified that any discussions with Berk & Associates regarding next steps should be held with the Mayor and Finance Director to clarify both goals and costs. ConseotAqenda Mrs. Pickett nnoved, seconded by Mr. Adarns, to approve the following Consent Agenda ham. Vote: Ayes — Pickett, Adams, Turner, Richardson, and Petrish. Motion carried. Approva|ofVouchers/Cancellation of Warrants Council voted unanimously that the following vouohers/warnante audited and certified by the City's Auditing Officer (Finance Director) and subsequently reviewed and approved by the Council Finance Committee on January 4. 2007 and January 71. 2007 are approved for payment as of this date January 18.2007. Claims Warrants January, 2007: Warrant Numbers 3S566through 3O735\nthe total amount of$1.O76.248.84 EFT January 2007: EFT Numbers 39562 through 39565 in the total amount of $350.00 Contract Awards (3) Library — Purchase and License Aqreemmemt A8aimtmommoe and Support Aqreememt yWa. Cynthia Harrison, Library Director, presented a request for Council review and approval of (1) Purchase and License Agreement (''SireiOynix~). and (2) Maintenance and Support Agreement. If approved. Ms. Harrison explained that the existing library coto[uQ and automated system at the Library would be replaced with a Web -based system; the new equipment includes an easier to use public catalog and improved modules for internal operations. With that, Mr. Patrieh nnowad, seconded by Mr. Turnor, to authorize the Mayor to enter into a contract with 3irsiDynixfor the library oots|ng and automated system replacement project, and to enter into a contract with SirsiOynix for system maintenance and support. Vote: Ayes — Adams, Turner, Richardson, Potrish.and Pickett, Motion carried. Appeal: CityImprovemmemt Board Baoetk:h (The proceedings are ontape and filed atCity }6s8) K0c Ian yWunma. Planning Director, described the process toappeal Anaoortes Improvement Board (AIB) decisions regarding neighborhood nuisance complaints. The appeal now before Council centers onthe November 17, 2006 AIB Notice of Order filed with the Skagit County Auditor's Office regarding the residence at23O1 31'tStreet (owned byAnthony Banebnh). The associated Findings nfFact catalog the JANUARY 16, 2007 complaints, description of the complaints, and action taken by the City; the Findings of the Board also include remedial action required and associated fees/fines. Mr. Bacetich filed an appeal of the Board's decision with the Mayor and City Council on November 22, 2006. The Council received copies of the Order, appeal, associated documents, and photographs of the yard at 2301 31' St. Mr. Anthony Bacetich, 2301 31St Street addressed the Mayor and Council. Mr. Bacetich reported that he felt that he hadn't been given information he requested from the Building Department; that some of the required work has been completed; and that the majority of the required work represents a financial burden to him and to his family. He asked that the fines be dropped and that he be allowed to complete the work within his time frame. Mr. Ed Frank, Building Official, explained that the first contact with Mr. Bacetich occurred in May of 2006; the matter came before the Board in November of 2006. Notification procedures were followed and staff tried to work with Mr. Bacetich toward resolution of these issues. The Inspector reported that, essentially, the situation on site has remained the same since first contact. Council questioned Mr. Bacetich on car, tool, and storage issues, and any steps taken to clean up the yard in response to AIB requirements. Mr. Adams asked for a time line on work completion; Mr. Bacetich was unable to provide one. In addition to the ongoing repair work on the vehicles, Council questions followed regarding Mr. Bacetich's ability to address the yard's general disorder. After discussion, Mr. Turner moved, seconded by Mrs. Richardson to stay the AIB Notice of Order regarding 2301 31St Street until June 30, 2007; an interim progress report will be provided at the end of March. Vote: Ayes — Turner, Richardson, Petrish, Pickett, and Adams. Motion carried. Contract Amendment: MHW Americas, Inc. — Waterline Corrosion Investiqation Mr. Fred Buckenmeyer, Deputy Public Works Director, presented a Contract to Council for review and approval. Mr. Buckenmeyer explained that the City's 36 -inch water transmission line (installed in the 1950's) shows external corrosion where the line rests on pilings adjacent to Padilla Bay. MWH Americas, Inc. has prepared a scope of services and costs to determine actual metal loss at representative locations; this information will assist staff in assessing the most cost effective long-term remediation. With regard to costs, this work would be funded as part of the 36 -inch pipeline projects - Segments 5 and 6 design work. After discussion, Mr. Turner moved, seconded by Mr. Adams, to authorize the Mayor to enter into a Contract Amendment with MHW Americas, Inc. to examine the corrosion on the 36' waterline in an amount not to exceed $38,302.00. Vote: Ayes — Richardson, Petrish, Pickett, Adams, and Turner. Motion carried. Stormwater Manaqement: Authorization to Challenqe Citv Permit Requirements Mr. Ian Munce, City Attorney, referenced an Association of Washington Cities memorandum entitled "Municipal Stormwater Permit Update and Issues". The memo addresses the Department of Ecology's (DOE) Phase II NPDES stormwater requirements/Permit. A number of jurisdictions have expressed growing concern over a lack of process and legislative action regarding this Permit; additionally, the Permit's proposed redevelopment standard imposes a costly burden on the landowner. Increased cost impacts of this redevelopment requirement also apply to public infrastructure, such as transportation projects. Although the Department of Ecology is aware of these and other concerns, DOE has chosen to move forward with issuance of the Permit to become effective on February 16th. The AWC asks that cities in Washington State evaluate whether or not they would have an interest in joining and helping fund an appeal. Mr. Fred Buckenmeyer, Deputy Public Works Director, stressed that the City's commitment to clean water and Stormwater detention systems are not at issue; rather, the proposed Permit's unreasonable redevelopment standards are of major concern. Mrs. Richardson moved, seconded by Mrs. Pickett to direct staff to move forward with a view to joining in the appeal. Vote: Ayes — Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. At approximately 9:00 p.m. the Mayor continued the January 16th meeting to Monday, January 22, 2007 at 3:30 p.m. to conduct a site visit. Steven D. Hoglu�`id, City Clerk -Treasurer H. Dean Maxwg, Mayor 4r Counci member This page is out of sequence - JKS JANUARY 8, 2007 — SPECIAL MEETING OF JANUARY 8, 2007 The Mayor called the special meeting the Anacortes City Council of January 8, 2007 to order at 7:30 p.m. Roll call found present: Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson, Loren Hoboy and Brian Geer. Roll call was followed by the Pledge of Allegiance. Consent Aqenda Mr. Adams moved, seconded by Mr. Petrish, to approve the following Consent Agenda items: Vote: Ayes — Richardson, Geer, Turner, Hoboy 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 December 28, 2006 and January 4, 2007 for payment as of this date January 8, 2007. Claims Warrants for the month of December, 2006 Warrant Numbers 39348 through 39561 in the total amount of $1,015,776.59 EFT for the month of December, 2006 EFT Numbers 39344 through 39347 in the total amount of $677.00 Prewritten Warrants for the month of December, 2006 Warrant Numbers 39337 through 39343 in the total amount of $2,475.22 Pavroll # 1 for December 19, 2006 in the total amount of $450,386.49 Warrant Numbers 30131 through 30188 in the total amount of $57,977.08 Direct Deposit Numbers 20686 through 20839 in the total amount of $243,504.12 EFT Numbers 642 through 647 in the total amount of $148,905.29 Pavroll # 2 for January 4, 2007 in the total amount of $689,515.14 Warrant Numbers 30189 through 30250 in the total amount of $224,242.86 Direct Deposit Number 20840 through 21013 in the total amount of $262,172.53 EFT Numbers 617 through 653 in the total amount of $203.099.75 Cancelled Warrants Warrant Number 30194 in the total amount of $1,401.68 Designatinq Aqents for FEMA In response to the desire of the City of Anacortes to seek disaster relief funds, the City Council adopted Resolution No. 1737, designating applicant agent for the State of Washington Emergency Management Administration. This action was taken on a motion by Mrs. Richardson, seconded by Mr. Hoboy and passed unanimously. Condemnation for a Waterline Corridor Mr. Fred Buckenmeyer, Deputy Public Works Director, explained his department's success in securing a series of easements through a negotiation process. These easements are for the purpose of finishing the last stretch of the City's second 36 inch water line from the Skagit River to the City of Anacortes. Mr. Buckenmeyer explained that the City had been unable to reach agreement with two property owners on a fair price. Accordingly, City Staff was seeking an ordinance authorizing condemnation. This action would then lead to a court establishing the fair value. After discussion, Mrs. Richardson moved that Ordinance No. 2759 be adopted. The motion was seconded by Mr. Geer and passed unanimously. Sale of Surplus Steel Mr. Gary Robinson, Parks Director, explained that the City had a stockpile of steel from an abandoned railroad operation. Mr. Robinson sought formal Council authorization to sell this surplus steel. After discussion, Mr. Hoboy moved that this authorization be given. The motion was seconded by Mr. Adams and passed unanimously. This special meeting adjourned at approximately 7:50 p.m. a, 6, Steven D. Hoggnd, City Clerk -Treasurer H. Dean Maxwell, ayor Plm ara �7Counmber 2072 FEBRUARY 5, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of Monday, February 5, 2007 to order. Roll call found present Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, and Cynthia Richardson, and Brian Geer. Roll call was followed by the Pledge of Allegiance. Minutes of Previous Meeting Mr. Petrish moved, seconded by Mr. Turner, to approve the minutes of January 16, 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. ,Mayor/Council Communication, In appreciation, the Mayor presented 1 -year Pride in Service Awards to Councilmembers Bill Turner, Erica Pickett, and Brian Geer; Councilmember Richardson received a 5 -year Service award. The Mayor then presented a "Spirit of Hope" award from the Beacon Development Group in appreciation for the City's support of the Wilson Hotel housing project. The Mayor then turned to a letter from the Skagit County Commissioners on water rights. The Mayor explained that the City of Anacortes, 3 area Tribes, the Department of Ecology, the Department of Fisheries, Skagit County, and Public Utility District # 1 entered into a 1996 Memorandum of Agreement (MOA) to consolidate existing and future water rights. Prior to that time, there were no allocations available to Anacortes for future growth. Knowing that growth in the City's water service area was inevitable, the City partnered with PUD # 1 to provide for an in -stream flow analysis to determine how much water would be available. Once the analysis was available, and for the next 18 months, the participants developed the MOA; at the conclusion of the negotiations the outstanding issue was exempt wells on the low flow tributary streams in Skagit County. Subsequent to this Agreement, Skagit County entered into a separate agreement with the Department of Ecology (DOE); the MOA principals have asked to meet with Skagit County and DOE to discuss what this secondary agreement entails. The Mayor suggested that it was inappropriate for discussions regarding water rights and allocations to take place without including all 1996 participants. In that regard, there will be a meeting in Anacortes of all MOA principals on February 22, 2007; Councilmembers Petrish, Pickett, and Adams will attend. Mrs. Richardson appreciated the Mayor's representation and commitment regarding this very significant issue. Appointment: Library Board Trustee/Jeane Thomson Mayor Maxwell introduced Ms. Jeane Thomson as the candidate for the Library Board of Trustees. The Council previously reviewed copies of her resume. With that, Mrs. Richardson moved, seconded by Mr. Geer, to confirm the appointment of Ms. Jeane Thomson to the Library Board of Trustees. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. The Mayor and Council appreciated Ms. Thomson's willingness to serve the community. Mr. Geer announced that the kick-off for this year's Relay for Life fund raiser will be held at Gere a Deli - Wednesday, February 7, at 7:00 p.m. The Mayor will be the City's Relay team captain; also, Island Hospital will be this year's event sponsor. Consent Agenda Mr. Adams moved, seconded by Mr. Geer, to approve the following Consent Agenda item. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, 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 January 18, 2007, January 25, 2007, and February 1, 2007 are approved for payment as of this date February 5, 2007. Claims Warrants January, 2007: Warrant Numbers 39741 through 39932 in the total amount of $1,113,807.01 EFT January 2007: EFT Numbers 39737 through 39740 in the total amount of $644.00 Prewritten Claims January, 2007: Warrant Number 39736 in the total amount of $200.00 Pavroll # 1 for January 19. 2007 in the total amount of $489.481.54 Warrant Numbers 30252 through 30301 in the total amount of $518,514.76 Direct Deposit Numbers 21014 through 21169 in the total amount of $265,757.19 EFT Numbers 654 through 661 in the total amount of $165,209.59 Pavroll # 2 for February 2. 2007 in the total amount of $654.421.72 Warrant Numbers 30302 through 30362 in the total amount of $234,189.56 Direct Deposit Numbers 21170 through 21275 in the total amount of $260,777.58 EFT Numbers 662 through 667 in the total amount of $159,454.58 Cancellation of Warrant: Warrant Number 30185 in the total amount of $4.80 FEBRUARY5,2007 Resolution: Commissioned Police BanoaioimqAqreememt 2007-2008-2009 Ms. Emily Schuh, Human Resources Director, presented o Resolution and Agreement to Council for review and adoption. K8a. Schuh then introduced Dove F!oyd, the new Police Guild president; the Mayor and Council asked Mr. Floyd to thank the Guild members for both their work in the community and for their professionalism during the negotiation pnomann. Ms. Schuh then briefed council on the Contract renewal process. Key items included wages, health and welfare, and language changes. With that, Mrs, Richardson nnoved, seconded by Mr. Hoboy, to adopt Resolution No. 1738 entitled ''A Resolution Authorizing Execution of Bargaining Agreement by and between the City of Anaoortes and the Commissioned Police Services Guild." Vote: Ayes —Turner. Richardson, Geer, Hoboy, Pedrish. Pickett. and Adams. Motion carried. Bid Award: 2007 CBD Sidewalk Replacement pnoiect Mr. Fred Buckenmeyer, Deputy Public Works Director, presented a request to Council to consider bids for the Cunnnnercio| Business District Sidewalk Replacement project. Mr. Buckannneyerexp|ained that this year's improvements will be placed between Q~'end 1O^'Streets on Commercial Avenue. This effort ia part ofa multi-year sidewalk replacement program initiated in 2001. Mr. Buckannmeyar introduced the Project Manager, Mr. Steve Lange who has worked well with the CBD business owners and contractors during previous construction phases. The one bidder. Snhvvetz Conatruotion, has worked on previous sidewalk projects and has provided the City with n quality finished product. With that, Mr. Turner moved, seconded by Mr. Geer, to svvond the 2007 CBD sidewalk replacement project to SchvvotzCnnstnuobon in the amount of $148,018.20. Vote: Ayes — Richardson, Gaer, Hoboy, Pethsh, Pickett, Adams, and Turnec Motion carried. PUD Final Development Plan (Preliminary Plat) for the "J"Avenue Cottaqeslappeal Wlc Don W1eneamer, Assistant Planning Director, presented this item to Council for review and action. The ^J~Avenue Cottages Planned Unit Development contains 8 single family residences on 1.03 acres; the building sites are 3.1OUsqft; off-site sidewalk improvements are required; and the R-3zoned project faces "J^Avenue and provides for apublic right-of+way. The applicant has requested changing the height restriction from 22 to 22.5 feet; there were no objections to this amendment from staff or Commission. The Planning [|ornnnioeion held e Public hearing on this matter and recommended approval of the Final Development Plan (preliminary plat) and height amendment for the ^J' Avenue Cottages PUD. One appeal was filed. The appellant, Mr. Greg Wilson, VVi|nnonr Development, asked for relief from portions of the required off- site sidewalk extensions. Mr. VVi|aon, reading from his appea\, suggested that the improvements were excessive for a project of this size. The sidewalk extension to the north would increase construction costs and provide for greater disruption in vegetation removal requiring additional restoration. In light of these added costs Mr. Wilson asked for relief from sidewalk extensions to the south. N1c Fred Buohennneyer, Deputy Public Works Dinactor, explained the condition to have a nix foot separation ofplanter strip between the curb and the sidewalk is e standard requirement called for in the Municipal Code. Staff is vv|||\ng to work with the applicant to accommodate minor changes in the alignment but supports the sidewalk requirements for safety and code compliance. Council and Council discussed the details of the sidewalk requirement and o potential Latecomers Agreement to recover costs. After discussion, Mr. Hnboy mnoved, seconded by Mrs. Pickett, toapprove the Preliminary Plat for "J" Avenue Cottages PUD, to approve the 22.5' height request, and to deny the appeal. Mrs. Richardson offered that the project would not impact property to the south and that it would be unfair to impose the aidawn\h improvements in that direction. She then moved to amend the motion to approve the Preliminary P{ed. the 225 height request, and to uphold the appeal by requiring off-site sidewalk requirements to the north. Mr. Turner supported the fairness of this amendment and seconded the motion. yNc Hoboy suggested that the sidewalks requirements were mitigation for project amenities. Mrs. Pickett supported the staff and Planning Commission recommendations. Vote onthe amendment: Ayes — Geer, Turner. and Richardson. No— Hobny, Potrish. Pickett, and Adams. The amendment failed. Mr. Adams and others then discussed further compromises to the sidewalk improvements. Vote onthe main motion: Ayes —Hoboy,Psdhsh'Pickett, Adams, Turner, Richardson, and Geer. Motion carried. There being nnfurther business, at approximately 9:00m. the Mayor adjourned the meeting. Sfeven D. Hfceiolnd, City Clerk -Treasurer H. Dean Maxwell, Wayor 4tl Councilmember 1M5 FEBRUARY 20, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of Tuesday, February 20, 2007 to order. Roll call found present Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, and Cynthia Richardson. Absent: Bill Turner and Brian Geer. Roll call was followed by the Pledge of Allegiance. Minutes of Previous Meeting Mr. Petrish moved, seconded by Mrs. Pickett, to approve the minutes of February 5, 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Richardson, and Hoboy. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Mayor/Council Communication - Mayor Maxwell initiated an update on water rights - a key issue facing Anacortes and Skagit County citizens. Mr. Ian Munce, City Attorney, reported that there will be a 10:00 a.m. televised meeting on this matter on Thursday, February 22nd in the Municipal Building Council Chambers. This evening's meeting will be continued to that time so that Councilmembers will be able to attend. Mr. Munce explained that all participants in the landmark 1996 Memorandum of Agreement regarding water rights for the next 50 years in Skagit County have been invited to attend. Thursday's meeting has been precipitated by action taken by Skagit County and the Department of Ecology (two of the 1996 MOA participants) to develop a separate water agreement outside the framework of the MOA. This breach may trigger Federal Court lawsuits jeopardizing the assurances and certainties of the 1996 MOA. Additionally, Skagit County has refused to address the City's concern that its water rights are at risk. The action taken by the County suggests that it does not consider itself bound by a signed contract. The City has filed appeals in order to keep this issue on the table. Mr. Petrish reported on maintenance issues on the Tommy Thompson Trail. Public Hearina: Kinaswav Open Space Disposition The proceedings are on tape and filed at City Hall. Mr. Hoboy stepped down from deliberation on this matter. Mayor Maxwell opened a Public Hearing to take comments on a proposal submitted by the Skyline Beach Club (Club). Mr. Ian Munce, Planning Director, explained that the Club has asked to purchase portions of City -owned property known as Tract D of Skyline Division 14; the Beach Club then proposes to relinquish its interest in Lots B and C (open space deeded to the Beach Club in perpetuity as open space), and combine those lots with portions of Tract D thereby creating two building sites. The buildings sites would then be sold and the proceeds would be earmarked for repairs to storm damaged beach front property. The Beach Club made a detailed presentation to the City Council at a previous Study Session. Neighbors within 300' of the property were notified of this evening's hearing; additionally, the Council has received correspondence from Beach Club members. The Mayor then opened the meeting for comments. Mr. Terry Culbertson 4305 Kingsway, urged the Mayor and Council to deny this proposal. Mr. Culbertson complimented the Beach Club on its desire to be fiscally responsible, however, he outlined reasons to deny the request: to preserve open space; to preserve and augment drainage; and to retain maintained open space for the enjoyment of all. Mrs. Culbertson submitted a petition asking the Council to deny the request. Mr. Robert Hawkins, 4210 Bryce Drive, read from his February 14, 2007 memorandum to the Council and spoke against the proposal. He highlighted drainage issues, and the negative precedent re -designation of open space status would set. Ms. Corrine Salcedo, 4303 Kingsway, helped with the Culbertson petition and characterized the neighbor's comments on drainage and retaining open space; she asked Council to deny the request. Mr. Jeff Snyder, 4216 Bryce Drive, emphasized that the existing open space is a significant wildlife corridor; he also expressed concern regarding drainage and asked Council to deny the request. Mr. Ross Barnes, 1004 7th Street, characterized his familiarity with Skyline issues, and pointed out that this open space was set aside in perpetuity as per Subdivision Ordinance requirements. He also discussed drainage issues and other options. Mr. Frank Higgins, 4602 Kingsway, Skyline Homeowners Association, explained that the Club proposal provides for significantly more open space than would be required under R 2 zoning; he clarified drainage concerns. He also said that proceeds from the sale of the proposed lots would be used solely for extensive storm damage repair and for the establishment of a Parks Trust Fund for future maintenance. The Beach Club is also planning to develop soccer and Little League baseball fields. Ms. Marlene Deaton, 4405 Kingsway, spoke in favor of the Beach Club proposal adding that it would benefit the entire Skyline community. There were no further comments and the Mayor declared the Public Hearing closed. This matter will be brought back to the Council at a later date. Mr. Hoboy returned to the Council Chambers. Paulson: Request for Easement Release Mayor Maxwell initiated the review of a request by Mr. Buzz Paulson for relinquishment of 15' of a 40' utility easement located along the west line of his property in the 2300 block of 11th Street; the property is also in the vicinity of the proposed Guemes Island trail. Mr. Ian Munce, Planning Director, reported that Mr. Paulson would like to renovate a residence on the westerly portion of the property and has asked the City to release a portion of the easement. City staff has determined that the remaining 25' is adequate FEBRUARY 20, 2007 for utility easement purposes and supports the purchase ofthe 16'at fair market value. Council previously reviewed the request and asked Mr. Paulson to consider providing a public access easement in lieu of compensation; Council conducted o site visit and Public Works provided detailed information on property ownership along the Guennes Channel. Mr. Paulson does not support the public ooceaa concept. Mrs. Pickett expressed concern over lack ofbicycle access points tothe GuennenTrail and asked that K8c Paulson reconsider. After discussion, Mrs. Richardson nooved, seconded by Mr, Adams, that the City relinquishes its interested in 15' of the 40' utility easement across the Paulson property in the 2300 block of 11"' Street subject to compensation. Vote: Ayes —Adanna. Richardson, Hoboy. and Petriah. No—Piokett. Motion carries. CmnmmntAaaoda Mr, Adams moved, seconded by Mr. Hoboy to approve the following Consent Agenda item. Vote: Ayes — Approval ofVouchers/Cancellation ofWarrants 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 February 8. 2007 and February 15. 2007 are approved for payment as of this date February 2O.2OU7. Claims Warrants February, 2007: Warrant Numbers 30A3Qthrough 4U16Ginthe total amount of$55G.07Q.43 BT February, 2007: EFT Numbers 3S035through 3gR38inthe total amount of$63G.00 PrewhttenQoirna February, 2007: Warrant Number 39Q33.3OS34inthe total amount of$16.7O4.82 PeYno||#1for FabnuarY122OO7inthe total amount of$4.O34.48(APD retro checks) Warrant Numbers 303G3through 303O3inthe total amount of$4.O34.4O Direct Deposit Numbers -N/A EFTNumbenu-N/A PavnoU#2for Februarv20.2OU7inthe total amount of8471.83Q.65 Warrant Numbers 3O302through 3U362inthe total amount of$234.188.5G Direct Deposit Numbers 2117Othrough 2i275inthe total amount of$2GO.777.58 EFT Numbers 682through 6G7inthe total amount of$159'454.58 Completion of 12 th Street Sidewalk Prmimot Mr. Fred Buckonrneyar, Deputy Public Director, reported to Council that the 2008 sidewalk and ADA ramp improvements on 12'" Street, '`L" to ''N" Avenues, are complete and were installed as per the construction drawings. The hmty| projectcoat in $34.746.20. With that. Mr. Hoboy mnoved, seconded by Mr. Petriah, to accept the 2006 12`" Street Sidewalk Improvement project an complete. Vote: Ayes - Richardson, Hwboy.Petrish.Pickett, and Adams. Motion carried. Closed Record 8Ametimq: Conditional Use —Veoswr—SimqleFanmilvimLP01Zone Closed RecomgKWeetina: ConditianalWse—ReesteA—SimqJe Fammi8yimL&8I Zone Mayor Maxwell initiated the Closed Record meeting on two Conditional Use applications for authorization to develop single family homes in the LM 1 Zone on Fida|go Bay Road. Mr. Jack Vouaerand Mr. Steve Roembe| are the applicants. Mr. Ian W1unca. Planning Directur, explained that the Planning Commission held Public Hearings on both applications and all hearing materials were forwarded bothe Council for review; the Commission recommended approval of the Vesser and Roestel proposals subject to standard conditions plus hookup to water and sewer, and 6' of natural vegetation on the shoreline. The applicants have agreed tothe conditions and noappeals were filed. Mr. N1unoe explained that the current update to the Shoreline Master Plan hos prompted these applications. Under the revised Plan, the current 25' setback would be increased to 100% the applicants have submitted proposals for arnaU (1.400 and 800 square feet) hnnnae; development is tightly constrained by the topography. K8c K8unoaaxp/ained that there are considerable costs involved in developing this proparty, but the applicants are asking for the right to pursue development of their properties. Mr. Hoboysuggeated conditions requiring o 3m party assessment ofwhere the high water mark is, and that appropriate action be taken to protect the setback as a buffer. |nanswer hnoquestion from Council, Mr. K8unoeexp|ained that ageotechnical report is o building permit requirement. Mrs. Richardson asked why the proposed setback in less than required by code in residential zones, A transcript ofthis evening's discussion and fonno| conditions will be prepared; additiona|/y, a site visit will be scheduled before this matter will be brought back to Council for deliberation and decision. Contract/Task Order Award — Surqe Protection Wastewater Treatment Plant — TSI Mr. Fred Buokanrnoyer, Deputy Public Works Oinsctor, explained to Council that during the past wind storm, the transfer switch at the Wastewater Treatment Plant was damaged, 2 -variable frequency drives were ruined, and the phase loss monitoring system was wrecked. K8r. Buokenmeyerexp|ained that this damage could have been prevented by transient voltage and surge suppression equipment. Technical Systems, Inc. (TSI) can, with this pnojeot, replace the transfer evvitoh, retrofit the rannoba intarfaoe, install surge protection equipnnent, install a power monitoring ayotann, and integrate this equipment in the 8CADAayatern. With that, K8no. Richardson moved' seconded by Mrs. Pickett to authorize the Mayor to FEBRUARY 20, 2007 enter into an agreement with TSI to provide surge protection at the WWTP and Pump stations 13, 14, and 15 in the amount of $65,531.92. Vote: Ayes — Richardson, Hoboy, Petrish, Pickett, and Adams. Motion carried. Ordinance: Clarification to Ordinance No. 2702 (Fish and Wildlife Habitat Conservation Areas) Mr. Ian Munce, City Attorney, presented an Ordinance to Council for review and adoption. The Ordinance corrects Chapter 17.70.540 of the Anacortes Municipal Code to include a requirement that Best Available Science (BAS) be included in the process of nominating for designation habitat areas and species. With that, Mr. Hoboy moved, seconded by Mrs. Richardson, to adopt Ordinance No. 2760 entitled "An Ordinance Correcting Ordinance No. 2702 (Fish and Wildlife Habitat Conservation Areas — Habitat and Species of Local Importance)." Vote: Ayes — Hoboy, Petrish, Pickett, Adams, and Richardson. Motion carried. There being no further business, at approximately 9:30 .m. the Mayor continued the meeting to Thursday, February 22, 2007 at 10:00 a.m. to accommodate a Public Meeting on water rights. Steven D. Fio und, City Clerk -Treasurer Coun `ilmember H. Dean Maxwell, Mayor 1 • MARCH 5, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of March 5, 2007 to order. Roll call found present Loren Hoboy, 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 Meetinq Mr. Petrish moved, seconded by Mrs. Pickett, to approve the minutes of February 20, 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Richardson, and Hoboy. Turner and Geer abstained. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Mayor/Council Communicatiom Mr. Petrish reported that a History Channel program, "Modern Marvels", aired Saturday night. The program documented that the world's strongest and best rope is made right here in Anacortes at Puget Sound Rope. Mr. Turner reported on a recent trip to Montero, Bolivia to participate in a humanitarian project organized by his family, the Catholic church, and Rotary Club in memory of his niece, a Rotary exchange student who died while on a trip to Montero. For the last three years this project has been, in part, feeding 250 children a day and empowering mothers to develop their lives; the Fidalgo Island Rotary Club also donated 280 wheel chairs that were distributed during Mr. Turner's stay in Montero. The audience applauded Mr. Turner and his family in this heartfelt work. Conservation Easement Proqram: Approval of Groves Mr. Jonn Lunsford, Forestlands Manager, presented a request to Council to permanently place a conservation easement on a grove of 125 acres in the Anacortes Forestlands. The Council and Mayor reviewed the legal description and location of the area via a January 10th memo from Mr. Lunsford. If approved, this would bring the total number of acres conserved through the Conservation Easement Program to 1,280. The Mayor and Council thanked the community for its generosity in leaving this unparalleled legacy for future generations to enjoy. The Mayor also encouraged the audience to read a recent Skagit Land Trust Bulletin highlighting the long-term commitment and support of the Forestlands by Anacortes resident, Mr. John Tursi. Discussion followed regarding opportunities for community involvement in future endowment projects once the forestlands have been fully secured through the Easement Program. With that, Mr. Geer moved, seconded by Mr. Adams, to approve placing a conservation easement on these 125 acres. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. Consent Agenda Mr. Petrish moved, seconded by Mrs. Pickett to approve the following Consent Agenda items. Vote: Ayes —Adams, Turner, Richardson, Geer, Hoboy, Petrish, 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 February 22, 2007 and March 1, 2007 are approved for payment as of this date March 5, 2007. Claims Warrants February, 2007: Warrant Numbers 40160 through 40326 in the total amount of $1,219,710.50 EFT February, 2007: EFT Numbers 40157 through 40159 in the total amount of $399.00 Prewritten Claims February, 2007: Warrant Number 40156 in the total amount of $10,880.00 Pavroll # 1 for March 4. 2007 in the total amount of $649,045.44. Warrant Numbers 30438 through 30503 in the total amount of $238,275.84 Direct Deposit Numbers 21500 through 21607 in the total amount of $253,852.65 EFT Numbers 674 through 679 in the total amount of $156,916.95 Warrant Cancellations: Warrant Number 39751 in the amount of $158.33 Warrant Number 39656 in the amount of $392.49 In the same motion Council: Approved the Oyster Run Street Fair Application for street closures on September 23, 2007 from 6:00 a.m. to 7:00 p.m. subject to staff recommendations regarding parking restrictions and Public Works services; and Adopted Ordinance No. 2761 entitled "An Ordinance Authorizing a Short Term Loan from the General Fund 001 to the Arterial Street Fund 105 for $500.00." MARCH 5, 2007 Bid Award: Segments 5 and 6 Waterline Pipe Mr. Fred Buckenmeyer, Deputy Public Works Director, presented a request to Council to consider a bid award for the waterline pipe for Segments 5 and 6 of the 24 -inch line replacement project (the 24 -inch will be replaced with a 32 -inch line). Three bids were received with the apparent low bid from Northwest Pipe Company. Mr. Buckenmeyer reported that Northwest provided the pipeline installed as part of Segments 1, 2, and 3 of the 36 -inch waterline construction; staff recommends approval. Additionally, Mr. Buckenmeyer acknowledged the contributions made by Mr. Gordon Bruchner and Mr. Robert Clumpner, Public Works staff, on the bid package and engineer's estimate preparation. Mr. Turner also complimented the Department on the consistent and careful bid analysis for these major improvement projects. With that, Mr. Hoboy moved, seconded by Mr. Petrish to award the Segments 5 and 6 Waterline Pipe replacement project to Northwest Pipe Company in the amount of $2,704,537.08. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. Motion carried. Contract Award: MWH Americas to Provide Contract Management Services/Segments 5 and 6 Mr. Fred Buckenmeyer, Deputy Public Works Director, presented a request to Council to consider entering into a contract with MWH Americas for construction management services needed for the 24 - inch waterline replacement project, Segments 5 and 6. The MWH Contract Administrator, Mr. Brandt Barnes, was in the audience to field questions from Council; Mr. Brandt served as the administrator for Segments 1, 2, 3A, 3B, and 4 and worked successfully with contractors and City staff throughout the project. With that, Mrs. Richardson moved, seconded by Mrs. Pickett, to approve Change Order # 8 for Management Services and Field Inspection necessary for the construction of Segments 5 and 6 of the 24 -inch waterline replacement project in the total amount of $354,286; and further, to authorize the Mayor to enter into a contract with MWH to complete the Change Order # 8 Scope of Work. Vote: Ayes — Richardson, Geer, Hoboy, Petrish, Picket, Adams, and Turner. Motion carried. Contract Award: Capital Industries, Inc. - Waste Containers Mr. Fred Buckenmeyer, Deputy Public Works Director, presented a request to Council to approve the purchase of 61 new waste containers to replace those dumpsters damaged and worn beyond repair. Bids were solicited; one bid was received from Capital Industries, Inc. After Council discussed the City's policies on dumpster rental, Mr. Petrish moved, seconded by Mr. Turner, to accept the Capital Industries, Inc. bid for 61 waste containers n the amount of $39,002.62. Vote: Ayes — Geer, Hoboy, Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. Authorization to Purchase Lot 1 of Short Plat # ANA 98-003 (1601 "Q" Avenue) from the Port of Anacortes Mayor Maxwell presented a request to Council for authorization to submit a Letter of Purchase regarding Port -owned property generally located at Seafarer's Way and "Q" Avenue. Mr. Ian Munce, City Attorney, reviewed the Council -directed process to acquire this land. Council previously received copies of the Port's appraisal; the asking price is $17.00 per square foot or $ 4.4 million. If Council directs, staff will move forward to the next step — site evaluation in preparation of an offer document. Mr. Munce pointed out that the subject lot is part of the former Scott Paper Mill site and still presents certain environmental cleanup and sediment issues. Staff will also need to Identify a reasonable feasibility period to review documents. Also, there are existing covenants attached to the property; these restrictions will need to be investigated with attention to potential revisions. As part of the next steps, the Finance Director is investigating financing options; staff will then bring back a financing package to Council to be followed on by an offer document. A sub -committee will need to be formed to, in part, study parameters regarding use, including multi -family above retail, and issues relating to clean-up relative to type of use. Mr. Hoboy suggested including an Executive Session as part of the decision process. Mr. Petrish spoke in favor of taking the lead to locate retail uses closer to downtown. Mr. Adams spoke in favor of taking this proposal to the next phase. Mr. Turner, Port/City Liaison Committee member, felt that the City was moving in the right direction and recommended an Executive Session as well. Mrs. Richardson, also a Committee member, spoke in favor of reviewing the financial analysis and offer documents before taking this next step. Mr. Hoboy pointed out that the City Council will retain control of the entire purchase process through to its conclusion. Mr. Turner agreed that the City will carefully craft the option document and moved to ratify the Mayor's recommendation to take the next steps to purchase Lot 1 of Short Plat # 98-003 subject to an Executive Session. Mr. Geer seconded the motion. Vote: Ayes — Hoboy, Petrish, Pickett, Adams, Turner, Richardson, and Geer. Motion carried. There being no further business, at approximately 8:45 p.m. the Mayor adjourned the City Council meeting of March 5, 2007. �AA4W Steven D. Hoglad, City Clerk -Treasurer .4'1-121-r-> r H. Dean Maxwell, Mayor 1 ' MARCH 19,2007 Special Meetinq: At 7:00 p.m. Mayor W1oxvveU convened the K8oroh 10, 2007 Special Meeting of the City Council. The meeting was scheduled in order to convene in City Council Executive Session regarding vvab*r litigation. /#7:3O p.m. Mayor K8axvveU concluded the Executive Sesaion, and without taking any action, adjourned the March 19th Special Meeting. /#7:30 p.m, Mayor K8ommeU called the regularly scheduled meeting of March 19' 2007 to order. NnU oeU found present Loren Hoboy, 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 Meetinq Mc Petheh moved, seconded by Mc Geer, to approve the minutes of March 6. 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy, Motion carried. CitizenHaarinqa YWr. Richard Bergner, 15515 Yohsko Dhve, presented o progress report on the Fidaklo Backyard Wildlife Habitat Project (Project). The Project's goal is to foster Fido\go Island, including Anacortes, as o community living in harmony with nature; toward that end. the City's Comprehensive Plan states the City ofAnacmrteo will support and encourage citizen involvement in backyard wildlife habitat programs. The Project participants are working with the National Wildlife Federation and the State Department of Fish and Wildlife tucertify all ofFida|go Island esoWildlife Habitat Community by August, 2008. yWc Bergner then outlined the ongoing programs designed toreach that goal. Applications hoparticipate inthe Project aro available at Qty Hall and the Library. The Mayor and Council thanked Mr. Bergner for his presentation. KOayor/C�un��lComnm�unicat�'n Mayor Maxwell asked for Council's confirmation of Mr. Fred Buukennneyer as the Public Works Director for the City ofAoacortee. Mr. Buckenmeyer stepped into an Interim Deputy Director's position following K8c Bob Hyde's resignation in Septernber, 3006. The Mayor expressed confidence that K8c Buokennneyer can continue to successfully lead the Public Works Department and characterized this interim period as seamless and painless. Counci|mnennbereindividually endorsed this action. With that, Mrs. Richardson nnoved, seconded by Mr. Turner, to confirm Mr. Fred Buckennneyer an the Public Works Director for the City ofAn000rteo. Vote: Ayes — Pickett, Adams, Turner' Richanjson, Geer, Hoboy. and Petrimh. Motion carried. On March 30th, from 2:00 to 5:00 p.m., members of the Anacortes Police Department will be serving $1.00 ice cream cones sdthe AnouorteeChocolate this event isofund raiser for the Washington State Special Olympics. Kxoymr K8axvvaU shared a Proclamation designating the week of April 8 through 14, 2007 as Public Safety Telecommunications Week in the City of Anacortes in honor of the men and women whose diligence and professionalism keep our citizens safe. The Mayor and Council expressed appreciation for the dedicated employees of Skagit 911 who provide condnuo|, profeaainno|, and compassionate dispatch service for a number ofcountywide agencies. Knc [an K8unue' Planning CUnac±or, presented the Council with the Shoreline Master Program interim working document; all changes recommended by the Planning Commission have been incorporated. AddU5onoUy, a series ofproposed changes (previously discussed by Council) are shown in red type. There are still outstanding policy issues to be addressed including jurisdiction for issuing shoreline permits, use of treated wood, and shoreline setbacks. Two meetings are planned to address these changes/issues; once this review is complete the draft will go out for public comment. In conclusion, Mr. Munce acknowledged Mrs. Richardson's significant contributions toward editing and updating the SMP. SetDmterSitaVisit— —FidmlqmBanRmmd Council scheduled a site visit relative to the | Conditional Use applications tnconstruct a residence in the LM 1 Zone. Participants shall meet ot5:3U p.m. on April 2, 2007 at the RV Park and shuffle to the site. No testimony will be taken at the site visit. Water Ricihts Liticiatiom: Next Steps K4c Ian Munoe. Planning Dinaotor, reported on a recent decision by the State Court of Appeals stating categorically that the 1098 Water Rights Memorandum of Agreement (MOA) in a binding agreement. Current Skagit County leadership and the State Department of Ecology have attempted to move forward with water rights issues outside this 1996 MOA framework, thereby endangering the City's water rights. Subsequent to this decision, the City will present Settlement Agreement to Skagit County proposing to place current litigation on hold provided the County can return to o cooperative approach to water allocation inSkagit County- All indications are that the County values acooperative approach. Sk/ineDivision #14: Next Steps K8c Ian K8unue. Planning Director, reported on the Skyline Beach Club's request hothe City to release its MARCH 19, 2007 City release its interest, the property would be sold and proceeds would be used for storm damage repair and park development in the Skyline subdivisions. An independent legal opinion from Foster Pepper and a March 15, 2007 letter from Frank Higgins, President of the Skyline Beach Club, will be forwarded to Council for review prior to the April 2, 2007 City Council meeting. The Skyline Division # 14 matter will be placed on that agenda for deliberation/decision. Consent Agenda Mr. Adams moved, seconded by Mr. Petrish to approve the following Consent Agenda items. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, 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 March 8, 2007 and March 15, 2007 are approved for payment as of this date March 19, 2007. Claims Warrants March, 2007: Warrant Numbers 40332 through 40531 in the total amount of $1,052,714.91 EFT March, 2007: EFT Numbers 40320 through 40331 in the total amount of $294.00 Prewritten Claims March, 2007: Warrant Numbers 40327 and 40328 in the total amount of $15,287.59 Anacortes School District — Facilities Bond Mayor Maxwell introduced Mr. Chris Borgen, Anacortes School District Superintendent. Mr. Borgen addressed the Mayor, Council, and community regarding the upcoming Facilities Bond proposal; he then introduced Ms. Kris Lytton, School Board Member, and Mr. Rick Yeomans, ombudsman and parent volunteer for the District. Mr. Borgen first thanked the Mayor and Council for the City's ongoing partnership with the School District; he then gave an account of the Facilities Committee convened by the School District to review Mt. Erie, Anacortes High School, and the District Maintenance/Warehouse building. The facilities were reviewed for safety, functionality, and whether or not they are meeting current school and community requirements. The Committee developed a list of proposed improvements,- the mprovements;the list was further developed with input from several community forums. Mr. Yeomans then reviewed the current condition and needs of Mt. Erie, the High School, and the maintenance/warehouse facility. The Mayor and Council thanked the School District for the detailed presentation. Public Hearinq: Heiqht Restrictions in the Commercial and CBD Zones/Ordinance Mayor Maxwell opened the Public Hearing to take comments on a proposed Ordinance adopting interim zoning height controls for the Commercial and Central Business District Zones. Mr. Ian Munce, Planning Director, explained that the City's recent comprehensive plan review highlighted the need for additional housing opportunities in the Commercial (C) and Central Business District (CBD) Zones. The interim action proposed would delete the existing cap on the height for residential structures. The Code was written some time ago to safeguard the upper stories in case of fire; the City Fire Department now has a ladder truck and residences/structures in the upper floors can be protected. Mr. Munce explained that it will be another year or more before the next round of Comp Plan/Zoning regulation changes can take place; with this interim Ordinance the height restriction issues in these Zones can be addressed now so that existing land owners can develop their properties. The Affordable Housing Task Force reviewed this change and recommended approval. Mr. Munce clarified that this change does not affect current parking requirements, although parking standards may be reviewed as part of the 2007/2008 Zoning and Comp Plan updates. The Mayor then opened the hearing to public testimony. Mr. Duncan Frasier, 400 East Park Drive, spoke in favor of the proposal suggesting a positive impact on downtown revitalization; with this change he, and other property owners, could investigate the financial feasibility of developing residential living space downtown. Mr. Alan Johnson, 1201 4th St., spoke against the proposal stating that no emergency exists, and that the net effects of this action will double the residential density downtown. He expressed concern about a "token retail' scenario in which a building's ground floor would be used primarily for parking. He suggested more public discussion before moving ahead. There were no further comments and the Mayor declared the Public Hearing closed. Mrs. Pickett asked about proposed language for a maximum dwelling unit size; Mr. Munce explained that this legislation could allow for 20-30 new units. The Mayor said that these downtown units (using the New Wilson Hotel as an example), could provide for easy access to public transportation, security, and many other amenities. Mr. Geer expressed concern that construction could go forward without sufficient discussion; Mrs. Pickett offered that the Council and community have discussed this residential need at length through the Comp Plan review process. Mr. Hoboy suggested building a reserve fund for a parking facility. Mrs. Richardson spoke in favor of residential possibilities in the downtown area; she also expressed concern over token retail, and suggested that the use of emergency interim controls is not warranted. Mr. Hoboy underscored the necessity to create consistency with the zoning and comprehensive plan ordinances. Mr. Adams asked to table this matter until April 2, 2007. Mr. Hoboy seconded the motion. Vote: Ayes — Geer, Hoboy, Pickett, Adams. No — Turner, Richardson, and Petrish. Motion carried. MARCH 19,2007 Street Fair Applications: Waterfront Festival, A8avI9th and nmm;March for Meals, March 31,20D7 K8c Fred Buokenrneyer, Public Works Oin*otor, presented two street fair applications: (1) March for Meals Parade (new street closure proposal) on March 31. 2007 from 10:00 a.m. to 12:00 p.m. beginning at Ston/ic Park on 291'' Street and ending at the Fida(go Center; and (2) Anacortae Waterfront Faotiva(, Cop Sante Boat Haven, on May 19. 2007 and Mary 20. 2007 from Q:OO a.m. to 7:00 p.m. After discussion, Mr. Geer moved, seconded by Mr. Turner, to approve the Waterfront Festival and March for Meals Street Fair applications subject to the applicant's submitted plan and Public Works and Public Safety requirements. Vote: Ayas—Fliohardson. Gaer, Hoboy, Pethsh, Pickett, Adams, and Turner. Motion carried. GommnmsChannel Park: Kiwamis Waterfront Park Sculpture W1c Gory Robinson' Parks and Recreation Director, drew everyone's attention to the nnaguhimard Lao Osborn sculpture on view in the Council Chambers; the piece will be placed otthe 6uernemChannel KivvanisVVatorfnont Park should funding become available, The artist has placed a modest value of $20.00Ofor the sculpture that, with base, will stand over 11feet tall. Mr. Robinson explained that $1O.0UO has been pledged from the Kivvonia Club &1t. Erie lease; staff recommends that the City earmark $10'000 from the Puget Sound Energy Mt. Erie lease for the purchase. With that, Mrs. Pickett nnoved, seconded by Mr. Goer, to authorize the $10, 000 expenditure for the KivvanisVVatarfront Pork Sculpture. Vote: Ayes —Geer, Hoboy. Pedheh' Piukett, Adams, Turner. and Richardson. Motion carried. Reauest Lease Aweamaotfor TemporaryFire Station Facilities Fire Chief Richard Curtis presented a request to the Mayor and Council for approval of a lease agreement for a 2,400 square foot facility to assist in providing fire suppression and paramedic ambulance service for the K0onoh Point area and south Fida|Ao |s/and; the property is located on Molly Lane southwest of Jerry Smith Chevrolet. Chief Curtis clarified that the longer term goal is to co -locate in a fire station with Fire 0othot # 13. With that Mr. Turner, a member of the Council Public Safety Committee, moved to authorize the Mayor to enter into a Lease Agreement with Skagit Sound Enterprises for the 2,400 square foot temporary fire station facility onMolly Lane. The motion was seconded byMr. Adams. Vote: Ayes — Hoboy.Putrish.Pickett, Adams, Turner, Richardson, and Geer. Motion carried, WTPVmmpmovememts Pmoiect: CsntraoAward—WDR—Master Plan Phase K8c Fred 8uckenrnayer, Public Works Director, reported to Council that the City in moving forward with the planning and implementation ofmajor VVTPirnprovemants. Phase 1ofthese improvements consisted of on evaluation of the existing plant facilities in relationship tothe City's key goals. As part nfPhase 2, the consultant will prepare a Project Master Plan and Engineering Report; the Department of Health will review and approve the Plan/Report. This project will assist the City in meeting fubmna quality and quantity demands imposed by regulatory raquinementa, wholesale demand, and population growth. Mr. Turner. member ofthe Council Public Works Connnnittee, said this proposal has been reviewed and studied extensively in Committee, and moved, seconded by Mr. Geer, to authorize the Mayor to enter into on agreement with HDR Engineering for Phase 2 of the VVTp Improvements Project in the amount of $507'721.06. Vote: Avea— Pethoh' Pickett, Ademm, Turner, Richardson, Geer. and Hoboy. Motion carried. WWTP Odor Control Proiect—Contract Award—HDROesiqm N1c Fred Buchennneyar, Public Works Director, reported to Council that there an extensive system of duotwork, fans, and air scrubbers at the VVVVTP; these improvements were constructed to remove and clean odorous gases before they leave the plant. Over time, this ductwork has eroded allowing for leakage. Besides the objectionable odor, this leakage has also caused corrosion of the interior plant rnahaha|o. The completed Phase 1 of this project evaluated the entire ventilation system and offered several alternatives associated with regulatory requirements. Phase 2includes preparation ofplans and specifications and cost estimates for new ductwork and a new control system. This proposal has been reviewed extensively by the Public Works Committee. With that, Mrs. Richardson move, seconded by Mr. Hoboy, to authorize the Mayor to enter into an agreement with HDR for VVVVTP Odor Control Project/Phase 2 design services in the amount nf$1O5.S25.1G. Vote: Aves— Piokott, Adanns, Turner, Richardson, Geer, Hoboy. and Patrinh. Motion carried. At approximately 10:00 p.m. Mayor Maxwell continued the regularly scheduled meeting of March 19. 2007 to K8ondny. April 2. 2007 at 5:30 p.m. in order to conduct o site visit in conjunction with the Vesaer/Roeste| Conditional Use applications; the meeting will than be continued to 7:00 p.m. in the Municipal Building in order to conduct an Executive Session to discuss real estate. At the conclusion of the Executive Session the continued meeting of March 19, 2007 will be adjourned, Steven D. Hogil��ity Clerk -Treasurer (�_ 4fi,4=9_ H. bean Maxwell, Mkor APRIL 2, 2007 Continued Meetinq of March 19, 2007: At 5:30 p.m. Mayor Maxwell convened the continued meeting of March 19, 2007. The purpose of the continued meeting was to (1) conduct a site visit in conjunction with the Vesser and Roestel Conditional Use Applications. No testimony was taken; at the end of the site visit the meeting was continued to 7:00 p.m. in the Municipal Building Council Chambers to (2) conduct an Executive Session to discuss real estate. At the conclusion of the Executive Session the Council reconvened, and without taking any further action, the Mayor adjourned the meeting of March 19, 2007. Citv Council Minutes — April 2, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of March 19, 2007 to order. Roll call found present Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, and Cynthia Richardson. Absent: Brian Geer. Roll call was followed by the Pledge of Allegiance. Minutes of Previous Meetinq The minutes of March 19, 2007 meeting will be available at the April 16, 2007 meeting Citizen Hearings No citizens present wished to speak on matters not on the agenda. Mayor/Council Communication: Proclamation: Arbor Day. Mayor Maxwell declared Wednesday, April 11, 2007 as the celebration of Arbor Day in the City of Anacortes; this year marks the 135th anniversary of Arbor Day, a day set aside for planting and caring for trees. The Mayor invited the community to join the City for a tree planting ceremony on Arbor Day at 11:30 a.m. in Causland Park. Proclamation: Architectural Week. Mayor Maxwell declared April 9, 2007 through April 14, 2007 as Architecture Week in the City of Anacortes; the Proclamation states, in part, that architects envision and create places for people to live and work in harmony with one another and the natural environment. The Mayor thanked all those who participated in the recent ferry run to Sydney B.C. The trip sponsored by the Chamber of Commerce, included members of our Sister City organization. The Mayor also thanked the Washington State Ferries for supporting this activity. Transmission of Parcel 1 Offer to the Port of Anacortes Mr. Turner moved, seconded by Mr. Adams, to authorize the Mayor to transmit the offer to purchase (at the appraised price) the Port owned 6 -acre site identified as Parcel I. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, and Hoboy. The Mayor looked forward to working together with the Port to provide additional opportunities for the community. Motion carried. Mr. Petrish clarified a remark he made at the March 19th Council Meeting regarding water utility revenue. Mrs. Richardson reported that she attended the National Main Street Conference in Seattle; the Conference focused on ways to revitalize downtown and neighborhood areas. Mrs. Richardson described the significant environmental benefits gained when an existing home or building is recycled. Mayor Maxwell reported on the City's latest efforts to sustain and protect the environment; for example, the City will begin using a bio -diesel fuel that will reduce CO2 emissions by 100 tons annually. Skvline Beach Club/Kingswav Property Mr. Hoboy stepped down from deliberation on this matter. Mr. Ian Munce, Planning Director, explained that the Council has held both Study Sessions and a Public Hearing on a request from the Skyline Beach Club to make platted open space available for sale and development. After the Public Hearing, staff sought legal counsel from Foster Pepper PLLC. Foster Pepper recommended that the adjacent subdivision, Skyline Division 14, would also need to support this action; further, if the City were to give up interest in the open space, that action would be compensatable. Discussion followed from the Council about establishing policies and procedures regarding relinquishment of open space. Council recognized the efforts made by the Beach Club to both fund and maintain their parks and open space. At the same time, Council was reluctant to abandon dedicated open space. After discussion, Mr. Adams moved, seconded by Mrs. Picket, to deny the request by the Skyline Beach Club to make open space in the Kingsview Terrace plat available for sale. Vote: Ayes — Pickett, Adams, Turner, Richardson, and Petrish. Motion carried. Mr. Hoboy returned to the Council Chambers. Draft Work Proqram 2007 Development Regulation Update Mr. Ian Munce, Planning Director, presented the schedule for a series of public meetings to develop proposals to comprehensively review and revise the City's Development Regulations. The proposals must be designed to implement the goals and policies of the Comprehensive Plan. The five Tuesdays in May will be set aside for these meetings; Mrs. Richardson suggested a final meeting on June 5th for a wrap-up session. APRIL 2, 2007 Closed Record Meetings: Conditional Use Applications — Vesser and Roestel, Mayor Maxwell initiated the Closed Record Meetings on the Vesser and Roestel Conditional Use applications to locate single family residences in the LM 1 zone on Fidalgo Bay Road. Mr. Ian Munce, Planning Director, explained that these applications have been submitted at this time in order to vest the proposals under current Shoreline Master Program setback requirements. The Program is undergoing revisions and the shoreline designation for the Vesser/Roestel properties will be changed to Conservancy; the shoreline setback in Conservancy is 100'. Public Hearings were held before the Planning Commission; all transcripts and exhibits were forwarded to the Council for review. The Planning Commission recommended approval subject to 10 conditions. Mr. Munce emphasized that there are significant challenges at this site to build in keeping with City's standards. Fully understanding these obstacles, the applicants have requested the opportunity to develop their properties. Council held a site visit and the Permit applications are now open for Council discussion/decision. Mr. Hoboy proposed language to prevent intrusion into the 25' buffer, and to require residential setback standards. Mrs. Richardson raised safety concerns; she suggested designating the shoreline setback as an NGPE, and adding language regarding gravel shoulders. Mr. Munce suggested that if the properties were to be subject to Residential Zoning standards, any deviation from those standards would require a variance form the Board of Adjustment. Mrs. Pickett asked about potential effects from blasting; Mr. Turner addressed the environmental sensitivity of the sites. After discussion, Mrs. Richardson moved, seconded by Mr. Turner to approve the Vesser and Roestel Conditional Use Applications for single family homes in the LM 1 zone subject to the Findings of Fact and Conclusions of Law recommended by the Planning Commission and subject to the following changes: Condition # 7 shall read: Street frontage improvements shall be provided as required by the Public Works Department, including gravel shoulders and paving; Add Condition # 11: A Native Growth Protection Easement (NGPE) shall be established to cover the entire Shoreline Master Program setback area and preserved during construction; Add Condition # 12: The required geotechnical report shall maximize the retention of existing ground cover and minimize contour changes; and Add Condition # 13: R 2 zoning specifications shall apply. Vote: Ayes — Adams, Turner, Richardson, Hoboy, Petrish, and Pickett. Motion carried. Interim Zoninq: Residential Heiqht in C and CBD Zones Mr. Ian Munce, Planning Director, presented a revised Ordinance for Council review and adoption. If approved, the Ordinance would adopt interim height controls in the Commercial and Central Business Districts. The Council previously held a Public Hearing on this matter; subsequent to the Hearing it was discovered that interim zoning controls do not require a declaration of emergency (language contained in the first Ordinance draft). The revised draft Ordinance before Council reflects that correction together with language regarding parking. After discussion, Mrs. Richardson moved, seconded by Mr. Hoboy, to adopt Ordinance No. 2762 entitled "An Ordinance Adopting Interim Zoning Height Controls for the Commercial and Central Business District Zones". Vote: Ayes — Turner, Richardson, Hoboy, Petrish, Pickett, and Adams. Motion carried. Consent Aqenda Mr. Adams moved, seconded by Mr. Hoboy to approve the following Consent Agenda items. Vote: Ayes — Richardson, Hoboy, Petrish, Pickett, Adams, and Turner. 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 March 22, 2007 and March 29, 2007 are approved for payment as of this date April 2, 2007 Claims Warrants March, 2007: Warrant Numbers 40536 through 20726 in the total amount of $672,140.02 EFT March, 2007: EFT Numbers 40533 through 40535 in the total amount of $482.00 Prewritten Claims March, 2007: Warrant Number 40532 in the total amount of $12,750.00 Pavroll March 20, 2007 in the total amount of $474,054.53, Warrant Numbers 30504 through 30559 in the total amount of $56,612.47 Direct Deposit Numbers 21674 through 21829 in the total amount of $257,411.28 EFT Numbers 680 through 685 in the total amount of $160,030.78 In the same motion Council: accepted the West 8th Street Wetland Enhancement project (06 -018 -IDS -001) as complete; and accepted the SR 20 Waterline Relocation project (03-098-WTR-005) as complete. Anacortes Arts Festival Mr. Adams left the Council Chambers. Mr. Perish asked that this item be pulled from the Consent Agenda. He received comments regarding an entertainment event that occurs at Causland Park during the Anacortes Arts Festival weekend. Mr. Gary Robinson, Parks Director, explained that this is not Festival -sponsored event; the Park Board did review and approve the proposal for this use. Mr. Petrish asked if another site is being sought for future auxiliary events; the Board and event sponsors are investigating both other sites and long-term policies. Security issues and hours of operation were discussed. With regard to the Arts Festival application, staff recommends approval subject to the APRIL 2, 2007 applicant's submitted plan and parking and public works restrictions. With that, Mrs. Richardson moved, seconded by Mr. Turner, to approve the Anacortes Arts Festival Street Fair application in downtown Anacortes for August 3rd 5th and 5th. Vote: Ayes — Hoboy, Petrish, Pickett, Turner, and Richardson. Motion carried. Ordinance: 60-dav Cost Inclusion for Water Bond Mayor Maxwell announced that this item will be brought back to Council at a later date. Consideration of WSDOT Utilitv Construction Aqreement Mr. Fred Buckenmeyer, Director of Public Works, presented a request to Council to approve a Utility Construction contract with WSDOT to relocate 849 feet of waterline and related work. As part of the State's safety improvements, a new bridge at Meadow Creek will be installed. The City will be required to temporarily relocate a section of waterline; under the City's Franchise, the City is obligated to pay for these costs. The Engineer's Estimate for the work is $323,110; an initial payment of $48,466.50 is due. Periodic payments will be made as the work occurs. Mr. Turner inquired about quality control; Mr. Buckenmeyer responded that the City will have an inspector on-site throughout the project. Staff will investigate both the feasibility of making a single relocate as opposed to moving the line twice, and the likelihood of reviewing or denying bids received by the State. With that, Mr. Turner moved, seconded by Mrs. Richardson, top authorize the Mayor to enter into WSDOT Utility Construction Agreement UT -0118 for the relocation of 849 feet of waterline and related work on SR -20. Vote: Ayes — Petrish, Pickett, Turner, Richardson, and Hoboy. Motion carried. Purchase Aqreement: March Point Ambulance Fire Chief Richard Curtis presented a request to Council for approval of the purchase of a 2007 North Star Ambulance for the March Point fire station (total cost: $214,482). Chief Curtis reported that the City has an agreement with Skagit EMS for a subsidy (in the amount of $185,000) to purchase this ambulance to provide paramedic service to March Point and the surrounding area. The City will utilize the "Tag On" method to make the purchase via an interlocal agreement with the City of Arlington. With that Mr. Turner, member of the Public Safety Committee, moved to authorize the Mayor to enter into an interlocal agreement to tag onto a City of Arlington ambulance purchase agreement, and to enter into an agreement with Braun Northwest, Inc. and other vendors to purchase the 2007 North Star Ambulance and medical equipment. Vote: Ayes — Picket, Turner, Richardson, Hoboy, and Petrish. Motion carried. Contract Approval: Washington Park Float Repair Mr. Gary Robinson, Parks and Recreation Director, presented a request to Council to authorize necessary repair work to the floats at Washington Park. The floats suffered winter storm damage due to high north winds. Four marine contractors examined the work to be done; Culbertson Marine Construction submitted the second lowest bid and contract terms were agreed upon. After discussion, Mr. Turner moved, seconded by Mrs. Pickett to authorize the Mayor to enter into a contract with Culbertson Marine Construction, Inc. for the Washington Park Float Repair and Refurbishment project in an amount not to exceed $46,695.00 plus applicable sales tax. Vote: Ayes — Turner, Richardson, Hoboy, Petrish, and Pickett. Motion carried. Draft SMP (Round 2) Final Review/Authorization to Circulate Mr. Ian Munce, Planning Director, briefed the Council on the Shoreline Master Program Update schedule. The Draft before Council includes all changes recommended by PC editorial changes recommended by Council, and language changes recommended by Mrs. Richardson. Mrs. Richardson State standards regarding creosote and treated wood, allowing non -water dependent uses on navigable channels; no more than 3,000 sq ft of impermeable surface for a single family home regardless of the size of the lot. The Council will continue the review/discussion in two weeks. There being no further business, at approximately 10:300 p.m., the Mayor adjourned the regularly scheduled meeting of April 2, 2007. Steven D. HogfLind, City Clerk -Treasurer Cou cilmember H. Dean Maxwell, IV yor • APRIL 16, 2007 At7:3Op.nn, Mayor Maxwell called the regularly scheduled meeting ofApril 1S.2OO7toorder. Roll call found present Loren Hoboy. N\nkPathah. Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson, and Brian Geer. Roll call was followed bythe Pledge ofAllegiance. Minutes ofPrevious R8emtimxY Mr. Turner moved, seconded by Mr. Petriah, to approve the minutes of March 19. 2007 as if read. Vote: Ayes —Pethsh.Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. C\tizeuHaorinqm Mr. John VVagnesa. 1301 ^h" Avenue, recommended that the City review and establish new rules of conduct at the off -leash dog park; he specifically referred to the handling of aggressive dogs. Mr. Adams suggested that the Park Board, together with F|DO, could revisit the park rules. The Mayor thanked Mr. VVagnensfor his comments, ' K0ayor/Couuci)CmmmmnunicsOon, Proclamation: Nodms Plant Aponaciation Week Mayor K8nnvveU declared the vveah of April 29 -May 5. 2007 as Native Plant Appreciation Week. The Mayor urged all citizens to learn more about our native plants and how to protect them, and to enjoy and appreciate our native flora's value and beauty. Proclamation: National Ubrary Week. Mayor Maxwell declared April 15 th through April 21st, 200 as Library Week inthe City ofAnacVrtea The Mayor urged all citizens tnvisit the library totake advantage ofthe wonderful resources available. Mr. Geer thanked the Mayor ail those who contributed to the success of the groundbreaking ceremony for this year's Relay for Life. Finalization mfG-aoreOffer toPort ofAnaoortes(Parcel 1) Mr. Ian Munce, Planning Director, outlined this next procedural step toward the purchase of Parcel I from the Port ofAn000rtes. The Council has already completed the concept phese, prepared o Purchase and Sale Agreement, and agreed onthe appraised sale price; tonight's action centers nnthe wording in the proposed offer. With regard to environmental isaues, the Agreement clarifies that the Pod has active responsibility in site clean-up. Mr. Turner added that the offer amount is based on the certified noononarnia\ appraisal of this property. Questions followed from Council regarding funding. Mrs. Richardson suggested that the Port's current planning process could influence the sale of this property. Mr. Adams emphasized that bringing small scale retail bmthis area is in response tocommunity needs. Mr. Hoboy pointed out that the Port's planning process has been a |engthy, ongoing process and yavv no reason todelay this decision. With that, Mr. Hoboy moved, seconded byMr. Turner, toforward the Parcel 1 Purchase and Sales Agreement to the Port ofAnncortes. Vote: Ayes - Pickett, Adama, Turner, Richendson, Geer. Hoboy, and Potrioh. Motion carried. The Mayor thanked the Council for its vote; the Mayor shared that this purchase represents a nono opportunity to develop retail uses adjacent tothe oonnrnercio\ business district. To do so would onsmer, in poh' the community's request for more retail opportunities. Ommft Shoreline Master Pmnmnamm (SMP) (Round 2) Fina) Review/Authorization to Circulate Mr. Ian Munce, Planning Director, briefed the Council on this next review step in updating the City's SMP. Of particular interest is the issue of whether or not the City should require 100' forested buffers along our marine shorelines, although this restriction is ideal from an environmental point of view there will be many questions/concerns raised by affected property owners. Council will look at this buffer issue in the context ofupdating the City's Shoreline Master Program. Tonight's recommended action will betorelease Draft #3 (minus the buffer issue) out for public comment. Another issue: Should the Council make the final decision on Shoreline Permits (Shoreline Permits are now issued by the Planning Commission). |nthat regard, Mr. K8uncasuggested that Shoreline Permits for projects of$1.O0U.O0Uorrnore.oronsitea ofgreater than 3 acres shall be issued by the Qty Council. K8na. Pichett, and othens, suggested that the current system of reviewing and approving Shoreline Permits has worked very well and that changing it would not benefit anyone; Mr. Turner recommended leaving the process as is. Mr. Hoboy raised the issue of elected official accountability. Mr. Adams thought the Council should be port of the decision-making process on these substantial permits. Lengthy discussion followed. As a result, Mr. Turner mnoved, seconded by Mr. Geer, that the Draft to be na|eeaed for public comment shall include the 7 revisions outlined in an April 11. 2007 memorandum from Mr. Ian yWuncetVthe Mayor and City Counci|, and that language shall be included to identify Council oversight inthe Shoreline Permitting process. Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrioh.and Pickett. Motion carried. ConseutAqenda Mr. Geer moved, seconded by Mr. Hoboy to approve the following Consent Agenda items. Vote: Ayes — Turner, Richardson, Geer, Hoboy' Pethnh. Piokett, and Adams. Motion carried. Approval mtVouchers/Cancellation ofWarrants, APRIL 16, 2007 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 April 5, 2007 and April 12, 2007 are approved for payment as of this date April 16, 2007. Claims Warrants April, 2007: Warrant Numbers 40730 through 40936 in the total amount of $503,076.67 EFT April, 2007: EFT Numbers 40727 through 40729 in the total amount of $276.00 Pavroll April 5. 2007 in the total amount of $703.369.08 Warrant Numbers 30562 through 30630 in the total amount of $235,228.15 Direct Deposit Numbers 21830 through 21936 in the total amount of $254,306.42 EFT Numbers 655 through 691 in the total amount of $213,834.51 In the same motion Council.- Accepted ouncil:Accepted the CBD Sidewalk Replacement (07-001-TRN-001) project as complete. Mrs. Richardson complimented Steve Lange of the Public Works Department and the contractors on this successful project. Authorization to Proceed on Ordinance: New Water Bond Ms. Wanda Phillips, Finance Director, requested: authorization to market for Water Utility System Improvement and Refunding Revenue Bonds, 2007, and adoption of Resolution No. 1739 entitled "A Resolution of the City of Anacortes, Washington, designating the Finance Director as the official authorized to make declarations of official intent on behalf of the City". Mr. Turner so moved, seconded by Mr. Geer. Vote: Ayes — Richardson, Geer, Hoboy, Petrish, Pickett, Adams, and Turner. Motion carried. Resolutions: Authorizinq Forest Lands Grant Applications Mr. Jonn Lunsford, Forest Lands Manager, presented two Resolutions for Council review and adoption. Mr. Lunsford reported that the City is applying for two grants for the Anacortes Community Forest Lands; one for State funding for 2008 and 2009 to have Anacortes Police officers patrol the AFCL during the summer; and the other for State funding to help with trail maintenance in 2008 and 2009. With that, Mr. Turner moved, seconded by Mr. Geer, to adopt Resolution No. 1740 entitled, "Authorizing application for Funding Assistance for a Nonhighway and Off -Road Vehicles Activities Program Project", and Resolution No. 1741 entitled "Authorizing Application for Funding Assistance for a National Recreational Trails Program project." Vote: Ayes — Geer, Hoboy, Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. Conservation Easement Proqram Mr. Jonn Lunsford, Forest Lands Manager, presented a request to Council for approval of the next 100 acres to be made available for non -grove donations to the Conservation Easement Program. Mr. Geer moved, seconded by Mr. Adams, to approve the 100 acres identified in an April 9, 2007 memorandum from Mr. John Lunsford to the Mayor and City Council for non -grove donations to the conservation Easement Program. Vote: Ayes — Hoboy, Petrish, Pickett, Adams, Turner, Richardson, and Geer. Motion carried. Contract Award: WWTP Secondary Bvpass Reduction desiqn - HDR Mr. Fred Buckenmeyer, Public Works Director, presented a request to Council for project approval for the Secondary Bypass Modifications to the Wastewater Treatment Plant. After discussion, Mr. Turner moved, seconded by Mrs. Pickett to award HDR Engineering a task order contract for Phase 2 design services for the Secondary Bypass Modifications to the WWTP in the amount of $45,409.29. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Contract Award: WWTP PLC Migration/TSI Mr. Fred Buckenmeyer, Public Works Director, presented a request to Council for project approval for the PLC's and associated network to place the existing antiquated system at the Wastewater Treatment Plant. After discussion, Mr. Turner moved, seconded by Mr. Adams to authorize the Mayor to enter into a contract with TSI, Inc. for the PLC Migration Phase I project in the amount of $79.643.61. Vote: Ayes - Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Perish. Motion carried. Special Event Application Mr. Gary Robinson, Parks Director, presented a request for Council approval to waive the insurance requirements associated with a Special Event application to conduct an anti -war rally and march from Causland Park to 12th and Commercial on May 18, 2007. Parking, noise, solid waste, and insurance coverage were discussed; no disruption to traffic is anticipated. There's no fee associated with the Special Event permit, although the applicant has requested a waiver of the insurance requirements. Mr. Ian Munce, City Attorney, clarified that a waiver would not be linked with the nature of the event, but would be in response to the minimum time frame and impact from the proposed event. Mrs. Pickett asked that the event planners pay attention to controlling dogs on leashes. After discussion, Mr. Petrish moved, seconded by Mr. Turner, to waive the insurance requirements for the rally scheduled for Causland Park on May 18, 2007. Vote: Ayes- Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. APRIL 16, 2007 There being no further business, at approximately 10:30 p.m., the Mayor continued the regularly scheduled meeting of April 16t' to Monday, April 23, 2007 for the purpose of discussing the T -Mobile Public Hearing, and to conduct a Public Hearing for the CDBG/Consolidated Plan Funding. AZ40 Steven D. Ho&bnd, City Clerk -Treasurer Councilmember APRIL 23, 2007 CONTINUED MEETING OF APRIL 16, 2007 W. dL, H. Dean Maxwell, �Aayor At 7:30 p.m. Mayor Maxwell called the continued City Council meeting of Monday, April 16, 2007 to order. Roll call found present: Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Brian Geer, and Cynthia Richardson. Absent — Bill Turner. Roll call was followed by the Pledge of Allegiance. Mavor/Council Communication Mayor Maxwell thanked two citizens who take it upon themselves to help keep Anacortes clean and beautiful. Coleman and Rosemary Hill were recognized four years ago for their efforts in picking up and disposing of litter along the streets. Mayor Maxwell commended the Hills again as they are still performing their good deeds and the City thanks them for their efforts. T -Mobile Application: Procedure Mayor Maxwell opened the meeting with the T -Mobile application. Mayor Maxwell explained the current status of the T -Mobile conditional use application and informed the Council that discussion tonight would serve to determine how to proceed with the application due to the 3/3 split vote by the Planning Commission. Mr. Munce, Planning Director, has conferred with the City's outside counsel, and recommends proceeding with a new hearing on this matter. Mr. Geer inquired whether there was any precedent from other jurisdictions in the event of a tie vote from the Planning Commission. Mr. Munce stated that because we do not have any procedure for this instance, it would be better to have too much process for determination rather than not enough. Mr. Petrish stated a site visit would be beneficial to investigate all aspects of the location and agreed that more process would be necessary. Mr. Hoboy asked to receive the entire package presented to the Planning Commission for review in order to make an informed opinion. Mr. Petrish also inquired whether new information would be presented or if Council would be reviewing only the previously submitted materials. Mr. Munce stated that if they followed his recommendation, new information would be available and the Council would have the opportunity to ask their own questions. After discussion, Mr. Brad Adams made the motion that in light of the Planning Commission's tie vote for denial of the application, that the City Council move forward with a public hearing. Mr. Munce clarified that this would be noted as a new hearing and would include a site visit. This hearing would be noted for June 11, with the site visit at 6:30 p.m. and the hearing to begin at 7:30 p.m. The motion was seconded by Mr. Geer. Vote: Ayes: Pickett, Richardson, Hoboy, Petrish, Adams and Geer. Motion carried. CDBG Consolidated Plan Mayor Maxwell opened discussion on the Community Development Block Grant Consolidated Plan with an introduction by Mr. Ian Munce. Mr. Munce provided background of the Federal Department of Housing and Urban Development program called the Community Development Block Grant Program (CDBG) and how the funds can be applied. Because this is a formula funded program, it changes a little every year. We receive approximately $100,000 every year. The City allocates 15 percent of our funding to the Skagit County Community Action Agency, which is a conduit for a number of state, federal, and local programs that assist the low income. CDBG funds are flexible funds and must be earmarked to help low income and the APRIL 23, 2007 - CONTINUED MEETING OF APRIL 16, 2007 disadvanta�Sd. and/or work on community revitalization projects. The New Wilson Hotel project was a past r cil�ient of this funding. The Anacortes Co unity. Shelter Program has applied for funding. N�v Eric Johnson, Board President of the ComNunitvy Shelter Program, presented Ule|[ st and how the funding would be applied to their Xoject. Mr. Adams asked about the cedure for application byionlerested parties. Mr. Munce stated we could continue accepting 1 or the next fe eeks. After discussion, Mayor Maxwell than d Mr. hnson. As there were no further comments, Mayor Maxwell closed the public testimo eriod of the public hearing. Mayor Maxwell stated that no decision would be made tonight d t the- proce s would be open for two more weeks for written submissions. Mr. Hobo ade thi a motion. The motion was seconded by Mrs. Richardson. Vote: Ayes - Geer dams, Pickett, trish, Adams, Richardson. Motion carried. ting was concluc The mee X Kd at approximately8:3O p.m. \N Steven D. Hoglund, City Clerk -Treasurer H. Dean CoUDcj|rne[nbB[ APRIL 23,2007 — CONTINUED MEETING OF APRIL 16,2007 11, Mayor disadvantaged and/or work OO ConnnlUOUv revitalization projects. The New Wilson Hotel project was a past recipient of this funding. The /\nacorteo Community Shelter Program has applied for funding. K8c Eric JohDoon, Board President of the COnOnlUnhn Shelter Program, presented their request and how the funding would be applied to their project. W1c Adams asked about the procedure for application by interested parties. KA[ K8uOoe Stated we could continue accepting proposals for the next few weeks. After discussion, Mayor Maxwell thanked K8c Johnson. ASthere were Dofurther comments, Mayor Maxwell closed the public testimony period Ofthe public hearing. Mayor Maxwell stated that no decision would be made tonight and that the process would be open for two more weeks for written submissions. Mr. HDbOymade this @ nOOtiDO. The motion was seconded by Mrs. Richardson. Vote: Ayes - Geer, Adams, Pickett, Pethoh.Hoboy.Richardson. Motion carried. The meeting was concluded sd approximately 8:30 p.m.. 'A Steven D. hvClerk-T[eoSUner H. Dean Ml;t�4fM�ayor Councj|membar MAY 7, 2007 At 7:30 p.m., Mayor K8oxvve| called the regularly scheduled meeting of May 7. 2007 to order. Roll call found present Loren Hnboy. NiokPethoh. Erica Pinkett, Brad Adams, Bill Turner, Cynthia Richardson, and Brian Geer. Roll call was followed bythe Pledge ofAllegiance. 00imwtma of Previous KAeetmq Mr. Pebish nnoved, seconded by Mc Adanns, to approve the minutes of April 2. 2007. April 16. 2807. and April 23, 2007 as if read. Vote: Ayea—Petriah. Pickett, Adama, Turner' Richardson, Geer, and Hoboy. Motion carried. CitizmoHamrimqs Mr. Bill Mitchell, 807 27 t St, thanked all those responsible for the downtown salmon -label trash receptacles. (The Mayor and Council thanked Mr. &Yitoha|| for his contribution to this program.). K8c Mitchell also discussed: although the historical informational panels at the Guannes Ferry parking lot are outstanding, other panels should be placed in onaao more accessible to tourists; and, development of nnusaunn in TonnnnylFhonnpson's train -oar house at the Depot. The Mayor thanked Mr. Mitchell for his comments and encouraged him to work with the Depot Master Plan Committee on his proposals. 8Oa��oOCommunication, — The Mayor introduced Mc Duane Clark President of the Aneoortea Sister City Association (\SCA). YWc Clark explained that the City ofAnacVrtea officially joined the Town Crier movement when K80. Judy Jewell was proclaimed by the City as its first Town Crier in 1908. Subaequent|y, Ms. Jewell represented the City at |000| and area celebrations as well an in international events. Mrs. Jewell will be retiring on July 0 of this year and the ASCA is requesting that the City confer the title of Honorary Anacortes Town Crier to KAa. Jewell. Also, the ASCA recommends the appointment ofMr. Richard Ride|| as the Official AnaoortesTown Crier. Ms, Jewell then presented n ringing barawa|| cry followed by an equally stirring introductory cry byMr. HideU. The Mayor then read aProclamation designating Richard Riddell tobeour Official Town Crier and Judy Jewell osthe Official Honorary Town Crier. Appointment: Stephen Oak|ev/K8uaeuno Director Me. Emily Schuh, Human Resources Director, introduced Mr. Stephen (]ak|ey, the recommended candidate for K8uaaunn Director. Mr. Oakley thanked the Mayor and Council for the opportunity to participate in the recruitment and selection process. The Mayor encouraged the community to stop by the Museum to see the facility and to meet Mr. Oakley. With that, Mrs. Pickett moved, seconded by Mr. Hoboy.toconfirm Mr. Stephen OoNoy'sappointment asMuseum Director. Vote: Ayes—Piokett.Adanne. Tunnor, Riohmndson, Geer. Hoboy. and Pebiah. Motion carried. Proclamation: Salvation ArnnvWeek Mayor W1axvve|| dac|onad May 14-20. 2007 as Salvation Army Week in the City ofAnaoortoa. The Salvation Army, serving in Anaoodos since 1906' provides meals and other humanitarian services to those inneed. Proclamation: Conservation Easement Month Mayor Maxwell proclaimed May as Conservation Easement month in the City ofAnacortes. Initiated in 1898' the Easement program has generated donations in excess of $1'418.000 to be used for the protection of1'28Oacres offorestlands in perpetuity. Proclamation: Historic Preservation Month Mayor Maxwell proclaimed May as National Historic Preservation Month in the City of Ananortes. The Proclamation states, in part, that "...it is important to celebrate the role of history in our lives and the contributions made by dedicated individuals in helping to pnaaenx* the tangible aspects of the heritage that has shaped us as a people;..." In that regand. Mrs. Margaret DeLourrne, member of the Anacnrtes Historic Preservation Board (AHPB), announced the recipient of the third annual AHPB award: Mrs. Maria Pethah. Mrs. Pethsh is pioneer ofpreservation in An000rtee and has worked for decades for the preservation of historic structures including the Great Northern Depot (Depot Arts Center) and the Catholic Church at the corner nf5th Street and "R^ Avenue. (NOTE: The Church site was originally owned by Amos and Anna Curtis; they sold the property in 1801 to the Presbyterian Church for $1 UO) Mrs. Petrish accepted the honor and thanked the Mayor and Council for the opportunity and privilege to contribute hnthe town she loves. Mrs. Patriah accepted the award to a standing ovation. VVaterRiqhts Update: Mr. Ian KAunoa. City Attorney, explained that the City's water rights have been fostered and protected by previous generations. The Mayor and Council are the latest administration to protect and ensure that water is available for Anacortes and the whole of Skagit County for the next 40 years under the auspices ofthe 1QQGMemorandum ofAgreement (K8DA). Additionally, Mr. K8uncealso outlined the significance of o 1993 Joint Operating Agreement with Skagit County PUO for the supply of water. Mr. K8unoe then briefed the Council on the recent challenge to the 1998 MOA made by two of the K8(]A participants - Skagit County and DOE. Together these agencies crafted a separate Agreement while disregarding the other six K8{}A participants - an action that threatens the water rights protections now in p|oma. A challenge to this action was filed with the Growth Hearings Board; the County answered that the interlocal MAY 7, 2007 agreement with DOE has no substance to change existing arrangements and that the new agreement was for additional work. That being the case, the Mayor has taken the initiative to write to the other seven MOA participants to convene a meeting to resolve the lawsuits and return to the original spirit and substance of the MOA. The Mayor and Council thanked Mr. Munce for his diligence in protecting the City's water rights as well as protecting the due process for negotiating and honoring agreements. With that, Mr. Hoboy moved, seconded by Mr. Geer, to authorize the Mayor to distribute the letter to the 1996 MOA participants. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. 2007 Consolidated Plan — CDBG Grant Mr. Ian Munce, Planning Director, asked to continue this item to the next Council meeting. He reported that no new funding proposals were received; however the City did receive a letter from an Anacortes Shelter neighbor raising issues about the facility. The Shelter will be responding to these areas of concern. Port Parcel 1: Update Mr. Ian Munce, Planning Director, reported that the Port of Anacortes thanked the City for its offer for the purchase of Parcel 1, but will be waiting to respond until the end of summer when they've finished their Cap Sante Basin Marina Plan development. In response, the Mayor wrote to Mr. Bob Hyde, Port Director, highlighting the community's interest in meeting its retail needs as well as its support of marine related amenities. Shoreline Master Proqram Draft: Amendment Mr. Ian Munce, Planning Director, presented a proposed addition to the Shoreline Master Plan Draft for Public Comment (Buffers). The addition was reviewed by staff and the City Council Planning Committee. Shoreline Buffers: (1) No buffers shall be required for water -dependent uses, which include public waterfront access and public trails; (2) For non -water dependent uses, shoreline buffer width shall be established using the same general methodology as for Wetlands in the City's Critical Area Ordinance (AMC 17.70). This means that buffers will range from 25' to 100'. Buffers will be established for each parcel upon issuance of a Shoreline Substantial Development/Conditional Use/Variance permit. Existing shoreline uses may continue unimpeded by this new buffer standard and buffer requirements shall not apply to maintenance and repair, minor construction, and single family homes; (3) Adjustments to buffer width may be approved through the Shoreline Substantial Development process provided there is no net loss of shoreline ecological function on a city-wide basis; (4) These provisions need to be read in conjunction with other SMP requirements. After discussion, Mrs. Richardson moved, seconded by Mr. Hoboy, to add the Shoreline Buffers amendment to the SMP Draft for public comment. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. Motion carried. Consent Aqenda Mr. Adams moved, seconded by Mr. Geer to approve the following Consent Agenda items. Vote: Ayes — Richardson, Geer, Hoboy, Petrish, Pickett, Adams, and Turner. 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 April 19, 2007, April 26, 2007, and May 3, 1007 are approved for payment as of this date May 7, 2007. Claims Warrants April, 2007: Warrant Numbers 40941 through 41201 in the total amount of $868,914.25 EFT April, 2007: EFT Numbers 40938 through 40940 in the total amount of $385.00 Prewritten Claims: April, 2007: Warrant Number 40937 in the total amount of $1,790.58 Pavroll April 20. 2007 in the total amount of $477.641.78 Warrant Numbers 30631 through 30688 in the total amount of $59,016.75 Direct Deposit Numbers 22002 through 22158 in the total amount of $259,486.79 EFT Numbers 692 through 699 in the total amount of $159,138.24 Pavroll Mav 4. 2007 in the total amount of $659.854.13 Warrant Numbers 30689 through 30758 in the total amount of $236,378 Direct Deposit Numbers 22159 through 22268 in the total amount of $263,145.07 EFT Numbers 700 through 705 in the total amount of $160,471.14 In the same motion Council: Accepted the chemical bid recommendation for 2007-2009 as outlined in an April 5, 2007 memorandum from Fred Buckenmeyer to the City Council and Mayor; and Approved the Shipwreck Days/Anacortes Car Show Street Fair Application for July 21, 2007 from 8:00 a.m. to 6:00 p.m. subject to conditions and services. MAY 7, 2007 Consideration of Bids for Segment 5-6 Waterline, Mayor Maxwell explained that agenda item 7a. requests Council's consideration of construction bids for Waterline Segments 5-6. The Mayor then announced that the attorney for DDJ Construction (one of the bidders) asked to speak on this matter on behalf of her client. As this was not a Public Hearing, the Mayor declined the request. Mr. Fred Buckenmeyer, Director of Public Works, explained that this project begins at the Water Treatment Plant, involves an under -river crossing, involves approximately 15,000 lineal feet of 36' welded steel pipe, and terminates near Bradshaw Road. Bids were opened on April 24tH with low bidder of James W. Fowler, followed by DDJ Construction, and Tri -States Construction; bids ranged from six to nine million dollars. Fowler acknowledged that they made an error in their bid and asked for relief; DDJ Construction then became the apparent low bidder. Assuming DDJ Construction would then be awarded the bid, Tri-State filed a protest of that bid contending that DDJ did not meet the experience requirements set forth in the bidding documents. The staff and Public Works Committee extensively reviewed the bids, and on advice from counsel, determined that neither of the two remaining bidders has met the significant elements of the qualification requirements set forth in the bid documents. Also on advice from counsel, Public Works recommends that the City reject all bids and that staff be authorized to re -bid the project as soon as possible. After discussion, Mrs. Richardson moved, seconded by Mr. Geer, to reject all April 24, 2007 bids for Segment 5 and 6 Waterline Construction and to re -bid the project. Vote: Ayes — Geer, Hoboy, Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. Resolution: Farmers Market Contract Extension Mr. Ian Munce, Planning Director, presented a Resolution to Council for review and adoption. If adopted, the Tourism Promotion Fund Contract with the Farmers Market would be extended from December 31, 2006 to December 31, 2007 in order to permit reimbursement for costs. The expenses were incurred prior to the December 31st cutoff but the paperwork was submitted on April 16, 2007, well after the contract expiration date. After discussion, Mr. Hoboy moved, seconded by Mr. Turner, to adopt Resolution No. 1742, entitled "A Resolution Amending that certain portion of Resolution No. 1710, passed and approved October 17, 2005 Authorizing Execution of a Tourism Promotion Fund Contract by and between the City of Anacortes and the Depot Arts Center for the Anacortes Farmers Market, Amendment for Time Extension". Vote: Ayes — Hoboy, Petrish, Pickett, Adams, Turner, Richardson, and Geer. Motion carried. Closed Record Meetinq: Conditional Use Permit — Welch — Wetland Encroachment/Mitigation, Mayor Maxwell initiated the Closed Record Meeting for the Bill Welch Conditional Use application to permit wetland encroachment and mitigation associated with the development of the Welch Industrial site at 8957 Stevenson Road. There will be three industrial buildings; in the corner of the site is a 4,000 square foot wetland site. Under regulations in place when the application was submitted, a 50' setback would be required; the applicant is proposing buffer averaging and wetland mitigation. The Planning Commission held a Public Hearing and recommended approval subject to conditions. All application, exhibits, transcripts, and proposed conditions were forwarded to Council prior to this evening's meeting. Mr. Ross Barnes raised an issued during the Planning Commission hearings regarding regulated buffers/setbacks. Mrs. Richardson recommended that the issue of whether the building footing should be setback from the edge of the buffer should be addressed at the building permit stage. Also, Mrs. Richardson discussed the wetland recharge. She suggested that roof drainage might be directed to the wetlands and pavement drainage directed to storm sewer. Mr. Munce recommended that these issues be included as conditions. Mr. Hoboy inquired about regulations regarding orange fencing and potential buffer encroachments. With that, Mrs. Richardson moved, seconded by Mr. Turner, to approve the Welch Wetland Encroach ment/Mitigation Conditional Use Permit subject to the conditions recommended by the Planning Commission together with conditions 11) Building footings shall be set back 5' from the wetland buffers, and 12) Wetland recharge shall be ensured in the stormwater design. Vote: Ayes- Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. An Ordinance — Clarifvinq the Water Rates Schedule Mr. Ian Munce, Planning Director, reported that this Ordinance will be brought back to Council at a later date. There being no further business, at approximately 10:00 p.m., the Mayor adjourned the regularly scheduled meeting of May 7, 2007. 7M, Steven D. Hogluyid, City Clerk -Treasurer H. Dean Maxwell I, yor Counci member 2092 MAY 21, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of May 21, 2007 to order. Roll call found present Loren Hoboy, 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 The minutes of May 7, 2007 will be available on June 4, 2007. Citizen Hearings No citizens present wished to testify on matters not on the agenda. Mayor/Council Communication, Mr. Adams thanked the Public Works Department for organizing and implementing the annual Spring Clean-up program; the activity was a total success. Water Rights Update: Mr. Ian Munce, City Attorney, updated the City Council on the Growth Hearings Board preliminary decision regarding the City's challenge to Skagit County's recent action on water planning and water allocation. Based on testimony offered by the County, the Board determined that the City's challenge was premature. In their argument to the Board, the County testified that, although devised and signed outside the existing Skagit County water rights contract (1996 Memorandum of Agreement), this separate agreement with the Department of Ecology did not change the 1996 Memorandum of Agreement, the Skagit County Comprehensive Plan, or the Coordinated Water Systems Supply Plan. Rather, the County explained, this extra agreement with DOE involves water use planning in parallel with those agreements - with only modest adjustments. That being the case, the Mayor has convened a June 15th meeting of the 1996 MOA participants to return to the original cooperative intent of the Agreement and to continue monitoring any activity associated with regional water rights issues. 2007/2008 CDBG Plan Mr. Ian Munce, Planning Director, explained that the City administers an annual Federal CDBG Grant for projects that assist the low income and those in particular need. The City held a Public Hearing on this year's funding cycle. The only funding proposal came from the Anacortes Family Shelter with a request for $75,000 toward a new facility. Confident of local support, the Shelter also submitted additional grant applications to other appropriate funding sources. As part of the hearing process, the Council reviewed both a letter from a neighbor and the Shelter's response to the neighbor's concerns. Mrs. Richardson suggested that the plans for the new Shelter indicate that particular attention will be paid to security, supervision, and staff assistance to those in need. Mr. Adams underscored that this facility will be located in a residential neighborhood and that public safety issues are of particular relevance. Both Mr. Turner and Mrs. Richardson have been working with the Anacortes Family Shelter Board to analyze appropriate locations, security issues, and all aspects of the Shelter affecting both the community and the residents of the facility. After discussion, Mr. Turner moved, seconded by Mrs. Richardson, to authorize the staff to prepare the 2007/2008 CDBG Plan including the Anacortes Family Shelter funding request and ongoing support for the Skagit County Community Action Agency. Vote: Ayes — Petrish, Picket, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. T -Mobile Hearing Procedure: Reauest for Chanqe Mr. Ian Munce, Planning Director, explained that the Planning Commission held a Public Hearing over a number of evenings to consider a Conditional Use application submitted by T -Mobile to locate a cellular tower next to the Methodist Church, 2201 "H" Avenue. Usually, the Planning Commission forwards a recommendation to the Council in preparation for the Closed Record Meeting and Council decision. In this case, there was a split Planning Commission vote thus preventing any opportunity for appeal to the Council. The Council then decided to hold its own Public Hearing on this application. Attorneys for T - Mobile argued that statutes provide for one hearing only on land use permits; the City's counsel advised that the Council holds discretion to conduct a second hearing. Mrs. Richardson recommended that the matter be remanded to the Planning Commission with a limited scope of issues to be addressed. Mrs. Pickett raised procedural issues. Mr. Hoboy thought the remand hearing would create an opportunity for additional testimony. It was decided that over the next two weeks Council would submit questions and concerns to the Planning Commission. With that, Mrs. Richardson moved, seconded by Mr. Geer, that the T -Mobile Conditional Use application be remanded to the Planning Commission for the single purpose of addressing Council questions and recommendations. Vote: Ayes — Picket, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. ConsentAgenda (Regarding Consent Agenda Item 6 b. — the City will accept donations for the annual fireworks display.) Mr. Petrish moved, seconded by Mr. Adams to approve the following Consent Agenda items. Vote: Ayes —Adams, Turner, Richardson, Geer, Hoboy, Petrish, 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 May 10, 2007 and May 17, 2007 are approved for payment as of this date May 21, 2007. 2993 MAY 21, 2007 Claims Warrants May, 2007: Warrant Numbers 41204 through 41393 in the total amount of $543,138.61 EFT May, 2007: EFT Numbers 41202 through 41203 in the total amount of $405.00 Pavroll Mav 18. 2007 in the total amount of $484,989.92, Warrant Numbers 30759 through 30820 in the total amount of $61,127.18 Direct Deposit Numbers 22333 through 22487 in the total amount of $262,906.57 EFT Numbers 706 through 711 in the total amount of $160,956.17 In the same motion Council: Approved the 4th of July Extravaganza street fair application for street closure and use of Causland Park subject to the applicant's submitted plans together with parking, Public Works Services, and Public Safety restrictions; and Approved the Anacortes Antique Machinery Show street fair application for street closures on September 8, 2007 from 8:00 a.m. to 5:00 p.m. subject to the applicant's submitted plans together with parking and Public Works Services, and Approved the special event request by the Anacortes Community Theater to use Causland Park for the presentation of a play on July 13th and 14th at 1:00 p.m.; and Accepted the 2007 Commercial Business District Sidewalk Replacement project as complete and authorized staff to publish a Notice of Completion in the City of Anacortes legal newspaper. Bid Award: Waterline Replacement Segments 5 and 6 Mr. Fred Buckenmeyer, Public Works Director, explained that the Council authorized staff to re -bid the Segments 5 and 6 Waterline Replacement project; the bid opening for the second call was May 21, 2007 at 8:30 a.m. Mr. Buckenmeyer announced that based on an extensive review of both bid documents for all bidders and a thorough review checklist, Thomco Construction does not meet the minimum experience qualifications set forth in the specifications and is therefore not the lowest responsible bidder. Based on the same information staff further determined that James W. Fowler and Tri-State Construction do meet the minimum experience qualifications. At this point, Mr. Buckenmeyer introduced Mr. Roger Myklebust from the law firm Ryan, Swanson and Cleveland, to further explain the bid process. Mr. Mykelbust reported that RCW 39 04 107 precludes the City from considering the apparent second low bidder, James W. Fowler (Fowler withdrew their bid from the first bid call). Mr. Mykelbust emphasized that time is of the essence and the City needs to move on permitting and constructing this significant project. Therefore, it is recommended that Council approve the bid award to Tri-state Construction for the Segments 5 and 6 water pipeline replacement project in the amount of $9,174,721.82; in the event a court order is entered which precludes the City from entering into a contract with Tri-State, the Council shall authorize the Mayor to enter into a contract with James W. Fowler in the amount of $8,977,045.00 (Mr. Mykelbust explained that a challenge could come from the apparent low bidder.) Mr. Geer so moved, seconded by Mr. Hoboy. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. The Mayor thanked Mr. Myklebust for his support during this difficult time. Ordinance: 2007 Water Revenue Bonds (Water System Seqments 5 and) Ms. Wanda Phillips, Finance Director, presented the 2007 Water Revenue Bond Ordinance to Council for review and adoption. Ms. Phillips then introduced Ms. Jane Towery, Managing Director for Piper Jaffray & Co., who discussed the City's recent bond rating upgrade; the better rating resulted in a lower bid for the bonds. The upgrade also broadened the investor appeal providing for a successful bond sale. Mayor Maxwell pointed out that water rights litigation issues were identified in the bond process; he encouraged continuing to solidify regional water rights through the 1996 Memorandum of Agreement. With that, Mr. Turner moved, seconded by Mrs. Richardson, to adopt Ordinance No. 2763 relating to the utility systems of the City and providing for the issuance of bonds. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. Motion carried. Final Plat: Knutson Mr. Ian Munce, Planning Director, presented the Final Plat application for the 8 -lot Knutson Plat at Sunset and Park Avenues south of Ferry Terminal Road; the plat includes the Grady Lane cul-de-sac. The Public Works Department worked with the contractor to make sure all utilities were installed to City standards. The Planning Commission and City staff reviewed the application; both recommend acceptance of the Final Plat application. With that, Mr. Geer moved, seconded by Mr. Adams to accept the Final Plat Application for the 8 -lot Knutson Plat subject to a 2 -year maintenance bond in the amount of $14,988. Vote: Ayes — Geer, Hoboy, Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. Mr. Petrish commented on the outstanding Sunset Avenue street improvement project. Closed Record Meetinq: Leeward Conditional Use Permit — Condominiums in the CM Zone, The proceedings are on tape and filed at City Hall. Mayor Maxwell initiated the Closed Record Meeting to review the Planning Commission recommendation and associated appeals on the Leeward condominium/hotel project; the project is adjacent to property MAY 21, 2007 generally referred as the "Ship Harbor" area, to the Portalis residential community, and to Edwards Way. Mr. Ian Munce, Planning Director, pointed out the project key features and surrounding development conditions. The Planning Commission held Public Hearings on this matter and recommended approval of the Conditional Use Permit subject to conditions; 12 appeals were filed. Contingent on Council approval the applicant will deed 3 acres of wetlands and buffers to City; regarding wetland issues, the project is grandfathered with a 100' buffer requirement. Trail easement, bike path, and height issues are still to be resolved. The Planning Commission will review these issues and the associated Shoreline Permit in late June. Mr. Petrish asked for an aerial photograph showing Leeward and surrounding developments.. The Mayor then opened the meeting to the appellants. (1) Francis & Billy Esposito: not present. (2 and 3) Mr. Allan D. Schroeder, addressed issues of height, scale and mass of Building A as it affects the Portalis development. Mr. Schroeder suggested design changes that would not have a significant affect on the proposal but would protect Portalis views; he asked that Council condition the project relative to building height. (4) Mr. Robert Masters spoke against the proposed density and use. (5) Mr. Robert Deckraush, 1402 Portalis Court, spoke against the immense building span without any corridors, and suggested that the project was not in keeping with the surrounding uses. (6) Mr. Steve Messich: not present. (7) Mr. Tom Glade, Evergreen Islands, 2306 17th Street, discussed: the City should protect the adjacent residential developments through the permitting process; there will be a significant increase in traffic; the matter should be remanded to the Planning Commission to further review Leeward revised materials; SEPA requirements have not been met; environmental impacts have not been considered; and the trail should not be in the wetland buffer. (8) Mr. Ross O. Barnes, 1004 7th Street, said that the non - motorized urban trail is an integral part of the Leeward project and should be reviewed under SEPA rules; an environmental impact study should be required to evaluate the trail impacts; the urban trail should not be located in the buffer; the project should be remanded to the Planning Commission to allow public comment on the revised documents; the hotel should be setback at least 20 feet from the Port shoreline tract. (9) Mr. Russ Lindquist, Gilbane Development Company, 7 Jackson Walkway, Providence, Rhode Island, explained that Gilbane is the owner and developer of the 24 -acre site east of the Leeward property. Mr. Lindquist expressed concern that the eastern portion of the Leeward property which directly abuts the Gilbane property, has not been addressed in this application thereby preventing a comprehensive study of the development. Additionally, connections through the eastern portion of the Leeward property are still unresolved, and the plans for Leeward should compliment the neighborhood building design. (10) Mr. Alan G. Foster: not present. (11) Mr. Donn A. Wilson, 1406 Portalis Court, said that Building A is not compatible with existing developments. (12) Mr. Robert Witzke: not present. Mr. Bob Carmichael, attorney, spoke on behalf of the applicant. Mr. Carmichael suggested that the comments and concerns raised by the appellants were thoroughly addressed during the Planning Commission hearings. He pointed out that those issues discussed this evening that were not raised before the Planning Commission should not be considered by Council; i.e., SEPA review. The revised Leeward information referred to earlier was submitted in response to issues raised during the hearing; the revisions included a storm water analysis. Also, the information is already on record about the view issue. Most of Portalis will not be affected by the proposed project and revisions were made to mitigate impacts to the 2 affected Portalis homes. Mr. Carmichael suggested that it's unrealistic to impose an obligation on an adjoining property owner without a view protection ordinance in place, and the development is compatible in every way. The project meets zoning and comprehensive plan criteria; the shoreline issues are not before Council. The proponent has agreed to provide the property to develop a trail; however, the trail is not integral to this project. Reference was made to City code language regarding passive recreational facilities in buffers. The Leeward property is in two parcels and can be developed separately. Geotechnical issues on the eastern portion of the property are being addressed. At approximately 10:00 p.m., the Mayor announced that this matter will be continued to Monday, June 11th at 5:00 p.m. in order to conduct a site visit in conjunction with the Leeward project. The Closed Record Meeting will resume on the evening of June 11, 2007 at 7:30 p.m. in the Council Chambers. Steven D. Hog6nd, City Clerk -Treasurer H. Dean Maxwell, Mayor 2095 June 4, 2007 At 7:30 p.m., Mayor Pro -tem Nick Petrish, called the regularly scheduled meeting of June 4, 2007 to order. Roll call found present Loren Hoboy, 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 Meetinq Mayor Pro -tem Petrish asked that the following be added to the minutes of May 7, 2007: (NOTE: The Church site was originally owned by Amos and Anna Curtis, they sold the property in 1891 to the Presbyterian Church for $1.00.) Mr. Geer pointed out a typographical error. With those corrections, Mrs. Richardson moved, seconded by Mr. Geer, to approve the minutes of May 7, 2007. Vote: Ayes — Pickett, Petrish, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Mayor/Council Communication Mrs. Richardson and Council members wished Mayor Maxwell a happy birthday. Mr. Adams asked Police Captain Bonnie Bowers to comment on the recent incidences of theft. Captain Bowers responded that citizens can come to the Police Department to get free locks to help keep property more secured; bikes and outdoor equipment should be kept in a fenced area or a secured garage at night. Additionally, Officer Del Ferrell, Crime Prevention, is available to speak to neighborhood groups; auxiliary patrol members can also offer community support. Mr. Geer thanked Police Captain Bowers for her participation in the recent Torch Run for the upcoming Special Olympics event; he also thanked Officer Janet Wilson for so successfully coordinating the Skagit link of the Run. Council Questions on T -Mobile for Planninq Commission — Conditional Use — Cell Tower Mr. Ian Munce, Planning Director, reviewed the T -Mobile Conditional Use hearing schedule. At a previous meeting Council asked the Planning Commission to hold a limited remand hearing on specific questions raised by the Mayor and Council. Written comments from Mayor Maxwell and Mr. Hoboy will be forwarded to T -Mobile for response prior to the remand hearing. Mrs. Richardson asked for clarification on separation distances and on justification for setback exceptions. She also suggested adding a permit condition requiring T -Mobile to share the cell tower with other providers. Mr. Hoboy reviewed his remand questions; he also wanted to know where T -Mobile might locate a future network of towers. Reqional Water Supplv Update Mr. Ian Munce, City Attorney, presented a document, "May 2007 Status Report/Water Supply in Skagit County" to Council for review. Mr. Munce said that this compilation will help explain historically how the current water rights issues evolved; it will clarify the serious consequences at hand for both the City and County should changes be made to the profound and far-reaching water agreements now in place. Of equal concern is the action taken by the County to suppress references to these historical documents as part of the current County water planning discourse. Mr. Munce then presented an in depth review of each section of the report as follows: Current Situation: TAB A: Anacortes-Fidalgo Island Coordinated Water System Plan, list of Water Utility Coordinating Committee members who contributed to the Plan; Plan narrative regarding water rights; 1984 letter from the Department of Ecology regarding a surface water certificate (Ranney well); Resolution No. 10324 adopting the Anacortes-Fidalgo Island Coordinated Water System Plan by the Board of Commissioners; 1982 County Resolution designating Fidalgo Island as a critical Water Supply /Service Area; a 1982 County Resolution creating a water utility coordinating committee. TAB B: Skagit County Coordinated Water System Plan/Regional Supplement/July, 1993 (CWSP). (Skagit County, City of Anacortes and PUD # 1 shared in the cost of preparing this CWSP; Skagit County Resolution # 12437 designating Skagit County as a Critical Water Supply Service Area. TAB C: City of Anacortes and Public Utility District No. 1 of Skagit County Agreement Regarding Skagit Regional Water Supply System, April 1993. TAB D: Memorandum of Agreement Regarding Utilization of Skagit River Basin Water Resources for In Stream and Out of Stream Purposes/1996. TAB E: Skagit County Coordinated Water System Plan Regional Supplement/July 2000. TAB F: Skagit County Comprehensive Plan, 2003 (Chapter 10, Utilities Element). TAB G: Skagit County Development Regulations: Closed/Low-Flow Stream Mitigation (Skagit County Code § 14.24.350(5)). TAB H: City of Anacortes Capital Facilities Plan 2008-2013, CFP Projects completed/dropped/changed (water) ($20 million). TAB I: Completion of Second 36" Waterline ($10 million). TAB J: City of Anacortes Capital Facilities Plan 2007-2012 (Water) ($58 million). TAB K: Water Treatment Plant Expansion: Master Plan and Engineering Report. Countv Proposed Chanqes TAB L: County/DOE Interlocal Agreement. TAB M: County Comprehensive Plan Amendment. TAB N: County Critical Areas Amendment. TAB O: Flow Reservation Accounting. Citv Damaqe Control TAB P: Court of Appeals, Div I (Case #57813-8-1) (1996 MOA not void as against public policy). TAB Q: County Admissions in GMA Case No. 07-2-0003. TAB R: County SEPA Actions: clarification. TAB S: County Clarifications in Health Department Rule Amendments. TAB T: Organization Meeting of the Skagit River CITY COUNCIL MINUTES —JUNE 4, 2007 - CONTINUED Flow Management Committee. Appendix A: extract from County Best Available Science [in support of changes to Section 14.24.350(s)] As part of the Citv Damaae Control discussion, Mr. Munce emphasized the following City objectives: maintain long term government to government relationships; insist that contracts be honored; plans, policies, and procedures are adhered to; financing mechanisms be safeguarded; Federal adjudication avoided. A wide-ranging discussion followed regarding: wells; joint long term resource planning; changes to agreements without proper process; contractual decisions affecting future Boards and Commissions; and Court decisions regarding the 1996 MOA. On a positive note, several of the 1996 MOA participants will meet on June 15th to develop a work program, by-laws, and rules. Councilmembers thanked Mr. Munce for this comprehensive report and document. Consent Aqenda Mr. Adams moved, seconded by Mrs. Pickett to approve the following Consent Agenda items. Vote: Ayes — Petrish, Adams, Turner, Richardson, Geer, Hoboy, 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 May 24, 2007 and May 31, 2007 are approved for payment as of this date June 4, 2007. Claims Warrants May, 2007: Warrant Numbers 41399 through 41587 in the total amount of $693,539.92 EFT May, 2007: EFT Numbers 41396 through 41398 in the total amount of $594.80 Prewritten Claims May, 2007: Warrant Numbers 41394 through 41395 in the total amount of $11,719.03 Warrant Cancellation Warrant Number 39515 in the total amount of $69.00 In the same motion Council Approved the Special Event Application for the use of Causland Park for the youth ministries activity, Bumberpallooza Fest, on June 20, 2007. Special Event Request: Causland Park 4th of July Mayor Pro -tem Petrish asked that this item be removed from the Consent Agenda. Mr. Petrish inquired about insurance coverage for the event. Council directed staff to investigate City sponsorship of this activity and to clarify insurance responsibility. Mrs. Pickett endorsed the hard work and commitment of the Women of Today for sponsoring the City's Independence Day festivities and moved, seconded by Mr. Hoboy, to approve the 4th of July Special Events application for use of Causland Park on the 4th of July. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Pickett, and Petrish. Motion carried. 2007 Waterline Prosect: Contract Award: Waterline Inter -tie at Lonqview Avenue Mr. Fred Buckenmeyer, Public Works Director, presented a request for Council to review bids for the waterline inter -tie at Longview Avenue. This project would provide for a flow increase resulting in less pump time required to fill the high zone storage tanks. Mr. Gordon Bruchner, Project Engineer, provided a more detailed description of the work to be done. After discussion, Mr. Turner moved, seconded by Mr. Geer, to award the Longview Avenue waterline inter -tie construction project to C. Johnson Construction, Incorporated in the amount of $32,247.80. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Pickett, Petrish, and Adams. Motion carried. At approximately 8:45 p.m., the Mayor Pro -Tem announced that this matter will be continued to Monday, June 11 at 5:00 p.m. in order to conduct a site visit in conjunction with the Leeward project. Council will meet at Edwards Way and the waterfront. The Closed Record Meeting will resume on the evening of June 11, 2007 at 7:30 p.m. in the Council Chambers. J�,I /! Steven D. Hoglund, City Clerk -Treasurer 'tvari'ci member "gp z/UZ J er H. Dean Maxwell Mayor 2097 June 18, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of June 18, 2007 to order. Roll call found present Loren Hoboy, 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 Meetinq Mr. Petrish moved, seconded by Mr. Turner, to approve the minutes of June 4, 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Citizen Hearinqs Ms. Leslie Eastwood, 1820 Down Jones Way addressed the Mayor and Council on behalf of the Samish Indian Nation. Ms. Eastwood shared that 60 or more tribal canoes and up to 3,000 visitors will enter the Samish territory at the Fidalgo Bay RV Park on July 29th as part of the Samish Canoe Family Tribal Journey. She explained that the Tribal Journey brings together over 5,000 travelers from over 40 Native American and First Nation communities to foster unity and clean living through tribal culture. Ms. Eastwood then invited the Mayor and Council to participate in this event; cedar roses were presented as a memento of this occasion and invitation. Mayor/Council Communication Mayor Maxwell reported on the recent successful Skagit River Flow Management Committee meeting held on June 15th. The purpose of the meeting was to meet with the other participants in the 1996 Water Rights Memorandum of Agreement (MOA) in order to develop a work program and bylaws for the management of water in the Skagit River Basin. Six of the eight MOA signatories were in attendance at the meeting; as part of the proceedings the Tribes determined they will not be participating in the 40 - member water rights committee being developed by Skagit County. The 2008 update to the Coordinated Water Systems Supply Plan is a work program item; additional items are to be forwarded to Fred Buckenmeyer, Public Works Director. Mavor's Award of Merit: Susan Chenoweth: Ms. Chenoweth has been nominated to receive the Mayor's Award of Merit because of her outstanding and diligent performance in the Finance Department. Recently, Ms. Chenoweth took a leadership role in the implementation and coordination of the City's business license module to the State Master Licensing Service. The Mayor shared that during this transition, she went above and beyond her regular duties to provide a valuable service to the City. Dave Walde: Mr. Walde has been nominated to receive the Mayor's Award of Merit because of his outstanding and diligent performance in the Public Works Department. His supervisors and co-workers commend his attitude and ethics. He recently provided assistance and expertise in the Pump Station 15 improvement project and the sewer repair project on 31St Street, both projects saved approximately $213,000 for the City. Mr. Walde also prepared Morton Avenue for paving providing for another substantial savings. Both Ms. Chenoweth and Mr. Walde received gift certifications to a local restaurant; their names will be placed on a plaque in the Council Chambers. Both received their awards to a standing ovation. The Mayor then Proclaimed the week of June 25- June 29, 2007 as Paint the Town Purple Week in the City of Anacortes. The activity is part of the American Cancer Society Relay for Life; citizens are encouraged to decorate with purple themes to help raise cancer awareness. Mr. Geer, Relay for Life organizer, thanked the Mayor for the Proclamation. Mr. Geer then introduced long-time Relay volunteers, Jim and Ceal Kight and Teresa Zoellick. Their dedication, commitment, and personal victory over this disease were appreciated and recognized by the Mayor, Council, and audience. Reappointment: Historic Preservation Board Mrs. Richardson moved, seconded by Mr. Geer, to confirm the following reappointments: Anacortes Historical Preservation Board: Both Steve Cox and Don McKee have asked to serve another 4 -year term ending in June, 2011. Board representatives recommend the reappointments of Mr. Steve Cox and Mr. Don McKee. Mr. Petrish emphasized the importance of this Board relative to preserving historical structures in the older parts of town. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. Mr. Hoboy moved, seconded by Mr. Petrish to confirm the following appointments/reappointments: Museum Advisory Board: (1) Reappointment of Mr. James Taylor for another 4 -year term to expire in June, 2011; (2) Appoint Mr. Tom Kuhn to complete the unexpired term of Carlann Copps until April, 2008. Board members support these appointments. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. The Mayor thanked the City's various Board and Committee members for dedicating their time and energies to these civic responsibilities. Consent Aqenda Mr. Adams moved, seconded by Mrs. Pickett to approve the following Consent Agenda items. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. 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 May 24, 2007 and May 31, 2007 are approved for payment as of this date June 4, 2007. JUNE 18, 2007 - CONTINUED Claims Warrants Juna.2007: Warrant Numbers 415S3through 4181Ginthe total amount of$62O.E00.81 BT June.2007: EFT Numbers 41SS1through 41582inthe total amount uf$311.4O PrewriftenC|oinns June.2007� Warrant Numbers 41588through 415SOinthe total amount of$28.15G.72 PaVroUfor June 5.20O7inthe total amount of$6Q5.210.S3 Warrant Numbers 3O821through 3OO96)nthe total amount of$244.G8O42 Direct Deposit Numbers 2248Othrough 225Q8inthe total amount of$278.317.24 EFT Numbers 712through 717}nthe total amount of$171.22227 |nthe same motion Council: Approved the Special Event Application for the use ofCmun|and Park for the youth ministries activity. Bumberpallooza Fest, on June 20, 2007 BudqetAmendment 2QO7: Ordinances (2) K80. Tori Wyman, Interim Finance Director, presented an Ordinance to Council for review and adoption. The Ordinance outlines 2006 capital project rollovers requiring re -appropriation of $3,037,500 (projects budgeted in20DGbut completed in2O07). Ms. Wyman then reviewed the 20O8projects byFund: Parks Impact Fund (112); Arterial Street Fund (105); Growth Management Fund (335); Water Fund (401); Sewer Fund (440); Storm Drainage (445); and Equipment Rental (501). With that, Mrs. Richardson moved, seconded by Mr. Turner, to adopt Ordinance No. 2764 amending the 2006 Budget/2006 Capital Projects Rollover. Vote: Ayes— Riohardnon, Goer, Hobny, Petrish, Pickett, Adams, and Turner. Motion carried. Ms. Wyman then introduced an Ordinance amending the 2007 Budget for projects that were not fully anticipated. The Ordinance reflects the expenditures from the following funds: New Appnnpriatione: General Fund (001); Library Construction (350); Parks Capital (1U8);Washington Park (107); Equipment Rental Fund (501). Total New Appropriations - $308.100. Sunset Avenue {}omo|etion: Arterial Street Fund (105). Total Sunset Avenue Appropriations: $1.100.000. Ms. Wyman then itemized the operating transfer and savings for the Sunset Avenue project. Mr. Hoboysuggested Council investigate alternative funding for the nap\amarnent of cash machines at Washington Park. Mr. Turner noted the increased revenue from Passport applications. With that. Mr. Hnboy moved, seconded by P*trieh, to adopt Ordinance No. 2765 amending Ordinance No. 2752 adopting the 2007 Budget. Vote: Axes— Gaar, Hoboy, Petrish. Picket, Adams, Turner, and Richardson. Motion carried. Council Input on2OD8Budqed The Mayor requested that the Counci|rnembens begin submitting recommendations for items to be included in the 2008 Budget discussions, Mrs, Pickett suggested an incentive prnQnann. Auto yWagic, to support carpooling; the winner would choose where to direct the earmarked funds. ACity website would a||nvv for participants to log in nni|ea saved by carpooling; there could be aovene| participant groupo;, i.e. service or0onizetions, oomponiea, and individuals. Mrs. Richardson recommended funding for further economic study and analysis to analyze the tourism and employment components of our community. Bui|dinmCode Update tu2M0GEditions W1c Ed Frank, Building Official, presented an Ordinance toCouncil for review and adoption. Previously reviewed in Study Session, the Ordinance adopts the International Building Code, International Building Code Standande, et a], and reflects recent Council corrections/amendments. This Ordinance follows the state adoption process and contains only changes allowed for local jurisdictions. Mr. Frank noted that the fire truck ladder access issue will be further reviewed by staff and Council. Mrs. Pickett inquired about the City's wind load figure. With that, Mr. Turner moved, seconded by Mr. Geer to adopt Ordinance No. 2766 adopting The International Building Code Standards, International Mechanical Code. et al. Vote: Ayes —Hoboy.Patrieh.Pickett, Adams, Turner, Richardson, and Geer. Motion carried. Berk Phase 2Economic Study Mayor Maxwell presented odraft Scope and Budget Estimate for the AneuortesRetail Analysis presented byBerk &Associates. Mayor Maxwell suggested that the analysis be delayed until the Port of Anacortes determines the disposition of the 6 -acre parcel adjacent to Seafarer's Way; this property will bereviewed as port of the Port's comprehensive planning process to be completed in the fall of this year Mr. Hobuy reported that the Council Planning Committee discussed moving forward with the Phase 2 analysis; the report could clarify the City's intent for this parcel and other similar undeveloped projects. Mr. Turner said that while the property is integral to the City's economic dave|opnoent, he thought that it might be premature to move forward with this Study during the Port's assessment process. Mr, Petrish felt Study may assist in the Port's analysis and spoke in favor nfthe Study; he added that other retail possibilities could be identified. Mr. Geer spoke in favor of the Study. Mr. Adams said that the analysis should show an objective approach to identifying retail sites regardless ofcurrent zoning. Mr. K8omma|| added that the nabai| analysis would be useful to identify retail matches for this parcel should it be made available to the City for development. KAna. Richardson recommended the Study include all en*aa of the City including March Point Highway 20 corridor, Central Business Diatriot, other near -downtown areas; and the west end. She also asked for the Study to identify where zoning changes would be appropriate. 2 ® J 9JUNE 18, 2007 - CONTINUED Mr. Turner asked if additional these amendments would affect the contract costs. After discussion, Mrs. Richardson moved, seconded by Mr. Hoboy, to authorize the Mayor to enter into a contract with Berk & Associates for the City of Anacortes Retail Analysis/Phase 2 with the following amendments: Study shall consider all areas of the City including March Point Highway 20 corridor, the Central Business District, areas near downtown, and the west end; (2) Study note where zoning changes would be appropriate. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Fireworks Displav Parkina Arranaements Mr. Gary Robinson, Director of Parks and Recreation, presented a proposal for approval for the City to manage all parking and traffic on Seafarer's Way and "R" Avenue during the 4th of July fireworks display. The Port of Anacortes and Thrive Community Fitness have coordinated both free handicapped and paid parking in their lots. Proceeds from the paid parking will be dispersed to the Park Foundation and to a youth civic group. After discussion, Mr. Turner moved, seconded by Mr. Geer to approve the fireworks display parking arrangements on Seafarer's Way and "R" Avenue as outlined in a June 11, 2007 Memorandum from Gary Robinson to the Mayor and City Council. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. Filter Valve Actuator Purchase (WTP) Mr. Fred Buckenmeyer, Public Works Director, presented a request to Council for the purchase of twelve electro -mechanical valve actuators for installation on the plant filter wash and waste valves. Eighteen of the 30 actuators have been replaced as part of a phased approach to replace the pneumatic actuated valves with electro -mechanical valve actuators. Staff recommends that Council accept the bid by Rotork Controls for the purchase of the remaining twelve electro -mechanical valve actuators in the amount of $41,173.92 including tax. Mr. Hoboy so moved, seconded by Mrs. Pickett. Vote: Ayes —Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. Contract Award: Schwetz Construction — 2007 Street Improvements Mr. Fred Buckenmeyer, Public Works Director, reported to Council that bids were opened on June 11, 2007 for the sidewalks on Fidalgo Avenue and the asphalt overlay on "R" Avenue and 41St Place; low bid was received from Schwetz Construction in the amount of $316,913.00. Mr. Hoboy moved, seconded by Mr. Adams, to award the 2007 Street Improvement Project to Schwetz Construction in the amount of $316,913.00. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. Motion carried. There being no further business, at approximately 9:30 p.m. the Mayor adjourned the June 18, 2007 City Council meeting. _ilk, 0,4--D Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell, Mdyor July 2'20O7 At 7:30 [zm, Mayor Maxwell called the regularly scheduled meeting ofJuly 2. 2007 to onder. Roll call found present Nick Pethah. Erica Pickett, Brad Adams, Bill Turner, and Brian Geer. Absent: Loren Hoboyand Cynthia Richardson. Roll Gall was followed bythe Pledge ofAllegiance. Minutes of Previous 0lemtinA Mr. Geer movad, seconded by Mr. Adams, to approve the minutes of June 4. 2007 as if read. Vote: Ayes —Picket.Adams, Turner, Geer, and Petrish. Motion carried. ChtizeoHeovinma Nocitizens present wished tospeak onmatters not onthe agenda. K8ayor/CouncUCmmmmnunicotimn' Mayor Maxwell reported that the City received a Certificate of Excellence from the Association of Washington Cities for the New Wilson Hotel project. W1c Turner reminded the community about the spectacular Tommy Thompson Trail and encouraged everyone to enjoythis unique public benefit. ConoeoiAciamdm Mr. petrish nnoved, seconded by Mrs. Pickett to approve the following Consent Agenda item. Vote: Ayes — Adams, Turner, Geer, Petrish.and Pickett. Motion carried. Appnzva\ofVouchers/Cancellation ofWarrants, Council voted unanimously that the fo|\nvv\ng vouchers/warrants audited and certified by the City's Auditing Officer (Finance Director) and subsequently reviewed and approved by the Council Finance Committee onJune 21,2OD7and June 28.2007are approved for payment aeofthis date July 2.2OU7. Claims Warrants June.2007: Warrant Numbers 4182Othrough 410g7inthe total amount of$G70.485.OG Juna.2007: EFT Numbers 41O18through 41810inthe total amount of$2QU7U Pnavvr)han C|a\rna Juno.2007- Warrant Number 41817inthe total amount of$25O.0O PoYro|)for June 2O.2O07inthe total amount of34Q5U5G.07 Warrant Numbers 3O8Q7through 30QG1 inthe total amount of$8S.U5g27 Direct Deposit Numbers 22OOSthrough 22826inthe total amount nf$263.g88.51 EFT Numbers 71Othrough 723 inthe total amount of$165.10B.1S Award Contract: Seven Siateno—Fmrmish and Install Generator/OPS, Mr. Fred Buckennneyer, Public Works Director, presented a request to Council to review the bids received for onemergency generator otthe City Operations Department. Mr. Buchennneyerexplained that the new generator is needed to maintain critical functions during power outages; this equipment will replace o smaller and older generator now in use. The low bid was received from Seven Sisters in the amount of $54.745.36. After discussion, Mr. Turner moved, seconded by Mr. Geer' to award the project to furnish and install an emergency generator at the City Operations Department to Seven Sisters in the amount of $54.74588. Vote: Ayes — Adams, Turner, Geer, Petrieh.and Pickett. Motion carried. Accept as Complete: SR 20 Waterline Relocation Proiact Mr. Fred Buokennneyer' Public Works Direntor, presented a request to Council to accept the SR 20 Waterline Relocation project as complete. Mr. Buckenmeyer reported that the completed project did come in under the original contract price due, in pert, to the diligence and oversight of the Engineering Division. With that. Mr. Geer moved, seconded by Mr. Petriah, to accept the Public Works Project O3- 0A8-VVTR-UO5BR2UWaterline Relocation project ascomplete thereby initiating the mandatory 30 -day lien period. Vote: Ayes — Turner, Geer, Petrish.Pickett, and Adams. 2OnQTourism Ppmiaotm-Process Mr. Ian K8unue. Planning Director, presented the City ofAnanorteeTourism Promotion Fund program scheduled for 2007. Mr. Munce explained that this represents the annual cycle for allocation of 2008 tourism funds. As part of this funding allocation, the City is required to have an advisory committee with representatives from the hospitality industry. The City will solicit proposals as to how to spend tourism funds to benefit tourism in Anacortea; the City will then determine the eligibility of the proposals. The Committee will meet and review the funding requests followed by a recommendation to Council. The approved spending plan will then become part ufthe 2OO8budget. Counoi|nnemnbansPetrieh.Geer, and Turner will serve onthe Council Committee. SouthFido|aoComnrnondvCouncM—LmttmrofSupport Mc Ian K8unoe, Planning Director, presented o request from residents of South Fidalgovvho are working to establish an elected council to represent their community; state law does provide for Community Councils. Additionally, the Community Council would also advise the state and county of south Fidalgo's position on issues of local importance and coordinate local responses to significant issues. Mr. Turner spoke in favor of this additional opportunity for open dialogue and d*or communication amongst 2101 JULY 2, 2007 - CONTINUED agencies; he's looking forward to working with this representative body. Councilmembers also spoke in favor of this request. With that, Mr. Turner moved, seconded by Mr. Geer, to direct the Mayor to communicate the Council's support for establishing a South Fidalgo Community Council of elected representatives to work with the County on the development of a South Fidalgo sub -area plan. Vote: Ayes — Geer, Petrish, Pickett, Adams, and Turner. Motion carried. Ordinance: Updatinq Datum Plane Mr. Fred Buckenmeyer, Public Works Director, presented an Ordinance to Council for review and adoption. If adopted, the Ordinance would re-establish the datum planes within the City of Anacortes originally established in 1891. Mr. Buckenmeyer recommended clarifications to Section 2: The datum for vertical measurement shall be NAVD 88 (North American Vertical Datum 88). The datum for horizontal measurement shall be NAD 83 (North American Datum 83). With that, Mr. Turner moved, seconded by Mr. Petrish, to adopt Ordinance No. 2767 entitled "An Ordinance Repealing Ordinance No. 7; Title I, Chapter 1.16 Datum Plane of the Anacortes Municipal Code. Vote: Ayes — Petrish, Pickett, Adams, Turner, and Geer. Motion carried. At approximately 8: 30: p.m. the Mayor and Council convened in Executive Session to discuss potential property acquisition. At 9:00 p.m. the Council reconvened and without taking any further action adjourned the July 2, 2007 Council Meeting. Steven D. Hoglund, City Clerk -Treasurer a�iember 7V . H. Dean Maxwell, Vayor 2102 City Council Minutes — June 11, 2007 Continued Meeting of June 4, 2007 The Mayor called the continued meeting to order at i. -,Ju p.m. Roll call found present: Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Brian Geer and Cynthia Richardson. Leeward Conditional Use Mr. Ian Munce, Planning Director, opened discussion of the Leeward project with the success in planning the access to the project and the road traffic management. Mr. Munce discussed the current status of the project and outlined the role of the Planning Commission on this project. Mr. Munce stated that the Planning Commission had decided not to make a decision on the shoreline permit until the City Council had made their decisions on this project. Mr. Munce discussed the particular issue of whether the condominium units should be allowed as a conditional use in the commercial marine zone and reminded the Council of all the testimony presented previously from the other projects surrounding the Leeward project. Mr. Munce indicated that the Council should look at the project as a whole as opposed to just considering the individual issues. Mr. Munce stated that the Council has two tasks: what decision to make on the project as proposed and how to decide on the appeals and that the Council should not restrict their decisions to the condominiums but to consider the entire project. They should also coordinate their decision with the Planning Commissioners' decision on the shoreline permit. Mr. Munce stated that the Planning Commission recommended approval with 30 conditions. Discussion opened with Mr. Hoboy asking for clarification whether the hotel height was before the City Council for this meeting. Mr. Munce clarified that it was not. Mrs. Richardson discussed the zoning code for this project in regard to the commercial marine section, the change to residential use for portions of the property and the 35 foot height limit. Mrs. Richardson stated that she does not believe it is fair to set restrictions on the Leeward development because this 35 foot limit has always been in place and the other developments should realize their lots are not view lots. Mr. Geer agreed with Mrs. Richardson. Mr. Hoboy disagreed and stated that the project should fit in with the existing neighborhood and that a solid wall of building would not fit. Mr. Hoboy also questioned the eventual traffic issues that may be a result of the combined projects as well as allowing a hotel which could eventually be turned into a condominium complex. Mr. Petrish expressed concern over three items with the project. Mr. Petrish first believes the character of the project is out of sync with the existing neighborhood; second, that some of the Portalis homeowners are going to have significant blockage to their views; third, why the the vacant spot to the east between Gilbane and Leeward isn't being developed. Mr. Petrish stated that before he could make a decision about the Leeward project, he would like to know what is proposed for the vacant area. Mr. Adams discussed three issues he believes are significant. These include the trails for that area, the hotel height and proposed change to 50 feet from 35 feet and how this could affect future developments, and the long building that would comprise the condominium that is being proposed and how that would affect the area and the neighbors. Mrs. Pickett discussed the ability this project could provide for public access to the water with the hotel, associated restaurant and the Guemes Channel Trail. Mrs. Pickett also believes that there are many loose ends which include the exact setback of the hotel from the beach, the location of the trail, the fire lane and the pump station. Mrs. Pickett discussed the eastern parcel and the problems associated with that area as well as the concern regarding the 60 day time period for the shoreline permit. Mrs. Richardson asked whether the Council could decline to rule on the 50 foot height limit until they have an answer on the shoreline permit and whether they could separate issues for consideration. Mr. Munce answered that that would be appropriate. Mr. Turner spoke as to fairness to the developer and that he believes it is not the position of the Council to determine the marketability of the particular project or how the project should be built other than keeping within the City guidelines. Mr. Munce stated that because there are issues that need to be resolved, in particular the hotel setback, the trail design, public beach access, the hotel height, fire access and the Gilbane sewer, the Council is not quite ready to make any decisions on this project. Mr. Munce 2103 JUNE 11, 2007 — CONTINUED MEETING suggested that if a motion is made and it fails, the issues would go back to staff level for a more finalized version. It would then be presented to the Planning Commission and then back to City Council as a complete package. When questioned whether this would be a continued meeting, Mr. Munce explained that City Council decision would either be an expanded remand to staff and Planning Commission or a denial of the project. Mr. Munce made note of the following issues that need further development before City Council can adequately consider this project for approval: • Setback for hotel versus Guemes Channel trail • Trail access details • Hotel height issues • Portales vis-a-vis Leeward • Fire access road • Sewer easement • Public access to the beach Mr. Munce suggested that if a motion is made and fails, the issues would go back to staff level for a more finalized version, then to the Planning Commission and then the City Council would receive a complete package for review and finalization. When questioned whether this would be a continued meeting, Mr. Munce explained that City Council decision would either be an expanded remand to staff and Planning Commission or a denial of the project. Mrs. Richardson moved that the project be remanded to the Planning Commission with comments from tonight's meeting. Mr. Adams seconded the motion. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, Hoboy. Motion carried. The continued meeting of June 4, 2007 was concluded at approximately 9:00 p.m. Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell,/Mayor Councilmember 4WIM July 16, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of July 16, 2007 to order. Roll call found present Loren Hoboy, 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 Meetinq, The July 2, 2007 minutes will be available on August 6, 2007. Citizen Hearinas No citizens present wished to speak on matters not on the agenda. Mayor/Council Communication Mayor Maxwell asked for Council confirmation of Mr. Steven Hoglund as the new Finance Director for the City of Anacortes. Mr. Geer so moved, seconded by Mr. Hoboy. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Mr. Hoglund thanked the Mayor and Council for this opportunity to serve the community and to be part of the local government process. Mayor Maxwell asked for Council confirmation of Mr. Tom Thompson as the Ward 1 representative on the City Improvement Board. Councilman Petrish enthusiastically moved to confirm the reappointment of Mr. Thompson; Mrs. Pickett seconded the motion. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. The Mayor thanked all the Board volunteers who so selflessly serve their community. Mr. Petrish sent the following message to the speed bicyclists who use the Tommy Thompson Trail; please signal their presence to pedestrians on the Trail, and try to use the Trail when the pedestrian traffic is at a minimum. Mr. Geer thanked all the dedicated volunteers who worked on the Relay for Life; the Opening Ceremonies will be held on Friday night at 6:00. Further, Mr. Geer thanked the City and Port for their on-going support of this and other important community fund raising activities. Mr. Hoboy remarked on the new equipment at Washington Park and thanked everyone who worked on this impressive recreational facility. Mrs. Richardson mentioned that the Kiwanis and Rotary Clubs contributed to the Park's many amenities. Shoreline Master Proaram Update Mr. Ian Munce, Planning Director, reported that the fourth round of public comments on the City's Shoreline Master Program Draft is complete. In light of this extensive review, Mr. Munce asked that the Council close the hearing to all the issues except those relating to buffers. Mr. Munce also explained that a final draft is available of the consultant's work on "Ecological Functions, Land Use, and Buffers and Setback." Staff recommends that the document be released for public comment concurrent with Council review. With that, Mr. Adams, moved, seconded by Mr. Hoboy, to authorize a 30 -day comment period on the "Ecological Functions, Lane Use, and Buffers and Setback" report and to close comments as to the other issues in the Shoreline Master Program except for those relating to shoreline buffers. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. Consent Agenda Mayor Maxwell removed item d. Street Fair Application — Anacortes Arts Festival Revision from the Consent Agenda. With that, Mr. Hoboy moved, seconded by Mrs. Pickett to approve the following Consent Agenda items. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. 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 July 5, 2007 and July 12, 2007 are approved for payment as of this date July 16, 2007. Claims Warrants July, 2007: Warrant Numbers 42000 through 42184 in the total amount of $375,878.83 July, 2007: EFT Numbers 41998-41999 in the total amount of $187.00 Pavroll for July 5. 2007 in the total amount of $727.384.05 Warrant Numbers 30962 through 31039 in the total amount of $239,615.12 Direct Deposit Numbers 22827 through 22937 in the total amount of $264,622.06 EFT Numbers 693 through 729 in the total amount of $233,146.87 In the same motion Council: A�proved the Street Fair Application for the annual Eagles Barbecue to be held on August 17-19, 2007 at 7t Street and "Q" Avenue. Staff and the applicant have agreed to conditions and services; staff recommended approval subject to the applicant's June 19, 2007 application; and 2105 JULY 16, 2007 Approved the Street Fair Application for the Causland Park Condo Association Block Party to be held on August 11, 2007 from 11:00 a.m. to 3:00 p.m. The request is to close the alley between 8th and 9th Streets between "M" and "N" Avenues. Staff and the applicant have agreed to conditions and services; staff recommended approval subject to the applicant's June 25, 2007 application; and Approved the Special Event Request to hold "What the Heck Fest" in Causland Park on July 21-22, 2007 from 11:00 a.m. to 4:00 p.m. Staff recommended approval subject to the City's special event policies; and Approved the Special Event Request to hold a Salmon Barbecue and Quartet Contest at Washington Park on July 29, 2007 from 6:00 a.m. to 4:00 p.m. The event is sponsored by the An -O -Chords; staff recommended approval subject to the City's special event policies. Anacortes Arts Festival — Street Fair Application — Revision Mr. Fred Buckenmeyer, Public Works Director, presented a request from the Arts Festival to change the street closure times on Thursday from 6:00 p.m. to 3:00 p.m. The request was discussed with the Public Works Committee, staff, and Police Department. Staff unanimously recommends denial of the time change request; the change would be too disruptive to the downtown area. Councilmembers agreed that it was unfair to further disrupt the merchants/traffic. With that, Mr. Richardson moved, seconded by Mr. Hoboy, to deny the request for the Anacortes Arts Festival schedule revision. Vote: Ayes — Richardson, Geer, Hoboy, Petrish, Pickett, Adams, and Turner. Motion carried. Closed Record Meetinq: Conditional Use Application: T -Mobile Wireless Communication Facilitv — 2201 "H" Avenue. The proceedings are on tape and filed at City Hall. With regard to hearing this matter Mayor Maxwell, Mrs. Richardson, and Mr. Petrish disclosed potential appearance of fairness issues; there were no objections from the applicant or neighbors. The Mayor then initiated the Closed Record Meeting on a Conditional Use Application submitted by T -Mobile USA to construct a new wireless communication facility at 2201 "H" Avenue in the R 3 Zone. Mr. Ian Munce, Planning Director, explained that the Council has been thoroughly briefed on the nature on this application. The applicants have availed themselves of the cellular tower citing section of the Zoning Ordinance. The Planning Commission conducted an extensive public hearing process on this matter; the final Commission vote was a 3-3 split. In light of that, the Council determined to hold its own Public Hearing, but the applicant objected citing that state law limits land use applications to one public hearing. The City Council then remanded several questions to the Planning Commission for review and recommendation; subsequent to the remand Public Hearing, the Planning Commission voted to recommend denial of the T -Mobile application. The applicant filed an appeal of the decision. The entire record, including draft Findings of Fact, was forwarded to the City Council. The applicant will present T - Mobile's appeal; the neighbors have been asked to coordinate their response. Mr. Gary Abrahams, representing T -Mobile USA, explained that a Conditional Use application for a wireless communication facility at 2201 "H" Avenue was submitted in September of 2006. With regard to need, T -mobile customers demand the coverage that this site will provide; the tower will also provide data and voice service to E-911. The T -Mobile application complied with all elements of the Municipal Code save for one - separation distance requirement. All issues were extensively analyzed; the requirements have been met under the code, and all documentation was forwarded to the City. While T -Mobile appreciates the neighborhood concerns, no evidence was presented to the contrary regarding the validity of the application; additionally, the City hired its own 3rd party review to investigate the need for the facility and any alternative locations. The application complies with the City code, state law, and the Federal Telecommunications Act. T -Mobile asks that the Council grant the appeal and approve the Conditional Use Permit. Mr. Abrahams then reviewed the project details: the facility equipment will be located on the ground and the tower will be painted green and blended into the trees; the location does not meet the 200' separation distance and the applicant is proposing Option A configuration. He then discussed procedural issues including the published notice stating that the remand hearing was to be limited in scope to address specific Council concerns. Instead the hearing was opened to testimony beyond that scope. In preparation of this application, T -Mobile used land use professionals to study creative solutions and alternative sites. The final analysis is that this is the appropriate site. Key issue one: Need for the facility - two current sites are not providing quality in -building coverage to Anacortes; this is supported by propagation maps in the Council packet. He then discussed the second key issue: alternative locations; this is the best possible location for line of sight technology; no alternative technology is available to provide necessary coverage. The combined 29th Street and Guemes Island sites would not provide coverage to the central commercial and residential core. The project has been designed to fit into the treed site. This application meets the criterion for a conditional use permit; highlights the coverage gap; addresses visual issues, and will provide needed service. Mr. Blake Thompson, 1605 24th Place, distributed a memo regarding updated information on an alternative solution to T -Mobile's cell tower. He explained that it's possible to use existing internet technology to provide cellular coverage ("T -Mobile HotSpot@Home") in the home. The cost is reasonable and would provide service for the T -mobile customers. Mr. Coleman Hill, 2417 Creekside Lane, spoke on behalf of his neighborhood and said that the cell tower will negatively impact their area — a non -neighbor seeks to commercialize the neighborhood, views will be impacted, property values will be depressed, and there will be additional noise. Mr. Bob Barry, 1914 22nd Street, referred to his information 2106 JULY 16, 2007 packet submitted to the Planning Commission. He suggested the lengthy process could have been avoided if T -Mobile had highlighted federal regulations early on in the process. Mr. Barry discussed the absence of information regarding available science, and T -Mobile's lack of response to issues raised including alternative sites and report details. Mr. Munce then explained, with regard to federal regulations, that cities are required to accommodate alternative technologies. With regard to T -Mobile's proposal, the City's responsibility is to apply appropriate policies and regulations, including federal, to the facts of this particular case. With regard to new and alternative technologies, the Council is limited to the record including this evening's submittal from Mr. Thompson. Mr. Adams asked if the remand testimony stayed within the scope of the hearing; Mr. Munce explained that there was no motion to strike any information although the Council has the discretion to do so. Mr. Petrish said that based on the information before him he was ready to make a decision. Mr. Petrish spoke against use of this site for a cellular tower; he said that Cap Sante should be considered as a site. Mr. Hoboy spoke against the project: he suggested that a combination of tower locations would work and that the 3rd party study acknowledges a 2 -tower solution; no additional engineering and scientific data was provided at the remand hearing as requested; and screening trees may be vulnerable to removal. Mrs. Pickett also spoke against the proposal citing her lack of confidence in the information provided by the applicant. Mr. Adams said that while this is a solid proposal, the neighborhood objections carry considerable weight. Mr. Turner also supported the Planning Commission's recommendation absent the appropriate data; he also proposed a proactive approach for the City to identify appropriate cell tower sites. The Mayor questioned approving a commercial use in a residential zone. Mrs. Richardson spoke in favor of the application noting the overall difficulty of finding an appropriate site; it is not Council's responsibility to direct which technology should be used; a single tower hidden in the trees would provide coverage for a number of cell phone customers. Mr. Geer spoke against the proposal and moved to direct staff to prepare the Findings of Fact and Conclusions of Law to deny the appeal and to deny the T -Mobile Conditional Use Permit application. Mr. Perish seconded the motion. Vote: Ayes — Geer, Hoboy, Petrish, Pickett, Adams, and Turner. No — Richardson. Motion carried. Executive Session (45 minutes) At approximately 9:30 p.m. the Council and Mayor convened in Executive Session to discuss litigation relative to water issues. At approximately 10:15: p.m. the Council reconvened and without taking any further action, continued the meeting to Monday July 23, 2007 at 5:00 p.m. in order to conduct a site visit at the Anacortes Airport. The meeting will again be continued to the evening of July 23, 2007 at 7:30 p.m. in the Council Chambers. Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell, ayor CouncilAember 2107 City Council Minutes — July 23, 2007 Continued Meeting of July 16, 2007 The Mayor called the continued meeting to order at 7:30 p.m. Roll call found present: Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson and Brian Geer. Review Joint Citv/Port Airport Development Aereement Mayor Maxwell introduced the members of the Port staff present. Mayor Maxwell then turned the meeting over to Mr. Ian Munce for background information on Development Agreement. Mr. Ian Munce, Planning Director, briefly described the function of the Growth Management Act and that it requires annual evaluation of plans and development regulations put in place by various governments, which is the reason for the site visit to the Airport and review of the Sub - Area Plan for the Airport. The Sub -Area Plan contains a series of policies covering the next twenty to thirty years, including some zoning regulations. There is actually a development agreement that calls for specific actions by the Port Commission, City Council and the City. Part of this agreement includes revisiting the site to assess the some of the tree intrusions and deal with the buffer issues. This site visit was designed to get some familiarity with the new configuration of the airport with the new hangers, the fence the buffer, some of those issues. Mr. Munce stated that there is no particular agenda at this time. Mr. Bob Hyde, the Port Executive Director, summarized some of the key issues regarding their new airport plan and compared the Port's airport plan to the City's zoning code. He added that the Port is holding an open comment period on their plan until the first of August. Mr. Hyde discussed the layout of the airport and their staff. He also discussed in length the vegetation, noise berm, trees and clearing that has taken place. Discussion then focused on the 75 foot buffer, SEPA review and aviation related commercial development only. This concluded the informational session on the joint City/Port Airport Development Agreement. Pump Station #12 Proiect Approval Mr. Fred Buckenmeyer, Director of Public Works, provided details on this project located at the end of Fifth Street in the Cap Sante area. Pump Station #12 is in need of repair due to deterioration. During heavy rainfall, the City hires a private company to pump the excess water because the current pump station cannot keep up with the extra flow of water. Mr. Buckenmeyer outlined the costs for the new pump station which included the estimate of $608,000 for the building contractor with an additional $106,000 for engineering costs. Mr. Buckenmeyer clarified that the original budget report included replacement of Pump Station #11, but that only Pump Station # 12 was to be rebuilt. Mrs. Richardson moved that this project be approved. Motion was seconded by Mr. Turner. Votes: Ayes — Hoboy, Petrish, Pickett, Adams, Turner, Richardson, Gere. Motion carried. Review/Approval June 11, 2007 & June 18, 2007 Citv Council Minutes Ms. Pickett moved, seconded by Mr. Adams, to approve the minutes of June 11, 2007 and June 18, 2007 as read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, Hoboy. Motion carried. Leeward Proiect Mr. Ian Munce introduced a follow-up question on the Leeward Project from the Planning Commission to the City Council. Mr. Munce asked the City Council for direction as to whether they want to have the Planning Commission have a limited reopening of the public hearing. Mr. Munce stated that the applicant would prefer not to have a reopening of the public hearing as they believe there has been enough public hearing process After much discussion on the various issues already under consideration, it was determined that all requests and changes should be put in writing for the Council members to adequately review. Mr. Munce agreed that this effort has been suggested to the applicant. 2108 JULY 23, 2007 - CONTINUED MEETING Progress Report — 2301 31St Street Nuisance Abatement Mr. Don Measamer, provided the City Council with a progress report on the nuisance abatement of 2301 31St Street. Mr. Measamer provide the history of this nuisance report and provided current status of the property, which is that property has not been cleaned to satisfaction. The Building Department is still receiving phone calls from neighbors due to garbage and debris buildup on this property. Discussion focused on the R2 zoning for this property but that the owner seems to be operating his property as a junk yard. Options were discussed for remedy. Mr. Measamer stated that the City of Anacortes Improvement Board ordered an assessment fee of $500 but this order was stayed by City Council in January of this year. City Council had been convinced by the property owner that he would clean up his property. Mayor Maxwell asked whether the City has any authority to remove the materials and was informed that not without a court order. Discussion followed regarding remedies. Mr. Munce suggested this problem go back to the Improvement Board, get a definitive order and give the owner an opportunity to contest the fee schedule. The City would impose civil penalties and then the City could go to court for collection. Mayor Maxwell called for a motion to send this back to the Improvement Board for a definitive order against the property owner and set up a fee schedule. Mrs. Richardson moved, seconded by Mr. Adams. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, Hoboy. Motion carried. The meeting was concluded at approximately 8:30 p.m. 14,4 4 Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell, M or e Councilmember 2109 August 6, 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of August 6, 2007 to order. Roll call found present Loren Hoboy, 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 Mrs. Pickett, to approve the minutes of July 2, 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Citizen Hearings No citizens present wished to testify on matters not on the agenda. Greeting from Nikaho Citv (Kisakata Town) Sister Citv Exchange Participants Mr. Duane Clark, Anacortes Sister City President, introduced Ms. Cora Lijeck, co-chair of the Nikaho City/Anacortes Sister City youth exchange. She shared that there are 14 Japanese students participating in this year's exchange with four chaperones and 12 Anacortes host families. She then asked Mr. Chisea Ikeda from the Nikaho City Planning Department to read a message from Mayor Tadanaga Yokoyama. Mayor Yokoyama first thanked Brian Geer for participating in the 10th anniversary of the Kisakata/Anacortes exchange. Recently, when Kisakata merged with two other cities in Akita Prefecture, the population doubled and sister city relationships in China, New Zealand, and Oklahoma were added to the list our international friendships — friendships that definitely contribute to world peace. Mayor Yokoyama also said that the hope is to learn from each and to develop sincere relationships that will last forever. Mayor Maxwell then thanked Ms. Lijeck for her dedication to make this important exchange a success. The audience applauded the students and guests. The Mayor announced that the League of Women Voters will sponsor a Candidates Forum on August 15th at 6:30 p.m. in the Council Chambers — this will provide an opportunity for the public to meet the next Council representatives for Wards 1 and 3. The Mayor reported that the City's Police Department Records Division is audited every three years; the recent audit reported 100% compliance. Ms. Christine O'Leary and the records staff are responsible for this significant result; in fact, the City's Records Division will be used as a model for other jurisdictions. The Mayor announced that Ms. Kathy Janke, Planning Department, recently completed 30 years of service with the City of Anacortes. The Mayor then introduced Mr. Gary Robinson, Parks and Recreation Director. Mr. Robinson announced that the City has reached its preservation easement goal of conserving 1,500 acres. He remarked on the overwhelming generosity of the community in its support of this conservation program. In particular, Mr. John Tursi has donated $375,000 to this program in memory of his wife Doris. Mr. Robinson introduced Mr. Tursi who made a ceremonial presentation to the Mayor of the final $25,000 securing the 1,500 acres. Mr. Tursi said that he had been taught to protect our natural resources and that it gave him great pleasure to donate the final contribution to protect the City's forestlands in perpetuity. On behalf of the Council and community, the Mayor thanked Mr. Tursi for his sincere and profound philanthropic contributions to Anacortes citizens of all ages. A thunderous standing ovation followed. Parks and Recreation Advisory Board Appointment: Marcia Hunt Mr. Hoboy moved, seconded by Mr. Turner to confirm the appointment of Ms. Marcia Hunt to the Parks and Recreation Advisory Board and to the ACFL Board. In this dual position Ms. Hunt will functions as a liaison between the two Boards. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. San Juan Passage: Landscape Plan/Grading and Clearing Proposal Mr. Ian Munce, Planning Director, recognized the significant features of the San Juan Passage final development plan project including a shoreline trail (constructed by the City but funded by am AUGUST 6, 2007 - CONTINUED Gilbane); transfer of wetlands to the City; donation of a 3 -acre open space parcel; two parks and access trails; parks, while privately owned and maintained, will be open to the public. One of the project conditions asks that mature trees be retained where feasible. The applicant has reported that, given the road and utility construction, it would not be possible to keep 21 mature trees; the applicant said they would mitigate for those tree losses. The Council has before them a proposal for the required landscaping plan; replacement trees include 75 mature pines and 31 maple trees. The Landscaping Plan was previously discussed with Council in Study Session. The biggest issue is the area along Oakes Avenue — conditions require berm with landscaping. The proposal before Council meets staff concerns and with the mitigation proposed, the Plan meets City requirements. This evening's meeting provides an opportunity for discussion as this is the last step before construction begins. Mr. Hoboy asked about the height of retaining walls; the answer was 2' to 7'. Mr. Geer said that the City is characterized and defined by trees and waterfront; saving mature trees is consistent with that definition and he appreciated the applicant's efforts at mitigation. Mr. Adams clarified the definition of mature trees and confirmed that the current proposal conforms to and exceeds current and updated landscaping criteria. Mr. Hoboy appreciated the progress made on the proposal; while it is regrettable that trees will be removed he proposed that the re -plantings be blended to create more natural appearing tree heights. Mr. Petrish said the intent of the Council was to save trees but doubted that was Gilbane's objective; he also inquired about the buffer at the northern end of property. Mrs. Pickett suggested that the Council study the arborist report; she was pleased with the proposal and underscored that the public benefits from this project are immense. The Mayor asked when the landscaping berm will be completed; the applicant needs to move ahead with site work to complete the berm by November. Mr. Adams pointed out that while there will be a loss of 22 trees, there will be a gain of 100. Mr. Turner suggested that future developers make note of the City's intent to save and protect trees; with that, Mr. Turner moved, seconded by Mrs. Pickett, to approve the San Juan Passage Landscaping Plan with the proviso that plantings be arranged to provide for a variety of heights. Mrs. Richardson, discussed the landscaping material choices, asked that English laurel be removed from the planting list, asked for more of a variety of species; and asked for plans for natural backyards. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Pickett. No — Petrish. Motion carried. Consent Agenda Mr. Geer moved, seconded by Mr. Adams to approve the following Consent Agenda items. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. Motion carried. At)proval 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 July 19, 2007, July 26, 2007, and August 2, 2007. Claims Warrants Aug. 2007: Warrant Numbers 42188 through 42441 in the total amount of $1,117,105.23 EFT Aug. 2007: EFT Numbers 42186 through 42187 in the total amount of $594.80 Prewritten Claims July 2007: Warrant Number 42185 in the total amount of $110.00 Payroll # 1 for July 20, 2007 in the total amount of $501,627.72 Warrant Numbers 31040 through 31112 in the total amount of $61,432.50 Direct Deposit Numbers 23006 through 23166 in the total amount of $269,747.43 EFT Numbers 730 through 737 in the total amount of $170,447.79 Payroll # 2 for August 3, 2007 in the total amount of $698,509.49 Warrant Numbers 31113 through 31198 in the total amount of $248,183.92 Direct Deposit Numbers 23167 through 23279 in the total amount of $276,439.97 EFT Numbers 738 through 743 in the total amount of $173,885.60 In the same motion Council accepted the Waterline Inter -tie at Longview Avenue project (07- 0 1 6-WTR-00 1) as complete thereby initiating the mandatory 30 -day lien period; and Approved the Special Event Application for a multi -church community picnic on September 2, 2007 at Storvik Park from 10:00 a.m. to 4:00 p.m. 2111 AUGUST 6, 2007 - CONTINUED Resolution: Adopting Proiect Specific Policy for Mayor's SiLynature (Segments 5 and 6 Waterline Proiect 2007-2008) Mr. Fred Buckenmeyer, Pubic Works Director, presented a Resolution to Council for review and adoption. If adopted, the Resolution would increase the Mayor's signature authority specifically with regard to the Segments 5 and 6 Waterline Project. The Resolution was reviewed by the Public Works Committee; the project cost is in excess of $10 million and staff is concerned that with the $30,000 change order threshold project delays could occur that would seriously accelerate costs. Mayor Maxwell added that any significant change orders will be brought back to the Council for a full briefing. Mr. Turner clarified that this Resolution is job specific and supported taking this action; with that he moved, seconded by Mrs. Pickett, to adopt Resolution No. 1743 entitled "A Resolution Adopting a Project Specific Amendment to the Policy for City Contracts (Segments 5 and 6 Waterline Project 2007-2008). Vote: Ayes — Richardson, Geer, Hoboy, Petrish, Pickett, Adams, and Turner. Motion carried. Public Hearing: CDBG/2007-2009 Consolidated Plan and 2007 Action Plan Review/Approval Mayor Maxwell initiated the Public Hearing to take comments on the CDBG 2007/2009 Consolidated Plan and 2007 Action Plan. Mr. Ian Munce, Planning Director, set the context for this Hearing. The Community Development Block Grant Funding, initiated by the Federal Government over 40 years ago, would annually appropriate funds to larger metropolitan areas; over time smaller cities the size of Anacortes were able to compete for funding — specifically for projects assisting low income citizens. The City received its first allocation 5 years ago and the new Wilson Hotel remodeling, create 25 low income units. The City also earmarked 15% for Skagit County Community Action Agency for direct service delivery. Mr. Munce explained that every three years the City must update its CDBG Plan by identifying particular projects, taking public input, and submitting a plan to the Federal Department of Housing and Urban Development HUD. After review the HUD could disperse funding; however, any project/contract implementation will come back to Council for approval. In that regard, the City received three contract requests for funding (amounts are approximate): (1) $18,000 to Skagit County Community Action Agency; (2) a new request from the regional food distribution center for $12,000 per year for 3 years to address storage and distribution issues; and (3) Anacortes shelter project in the amount of $75,000. An existing shelter is already established; a new family shelter is proposed. If approved, Council could condition the project contracts. The shelter is located in the appropriate zone so there are no land use issues. Mr. Steve Burton -1012 27th St. spoke against the Shelter appropriation; he lives near the Shelter and stated that the neighborhood quality of life has deteriorated since the shelter was established; he said that criminal activity has occurred. Ms. Valerie Gleason, 5209 Maritime Court spoke in favor of the shelter project; through her own experience her family was assisted and encouraged through a similar shelter project. She said people need a safe haven to make a fresh start. Mr. Bob Thurkelson, 1018 27th St., lives across from the shelter and said the quality of life has suffered and property values have decreased; security is an issue. Mr. Bob Marriott 1015 26th St., suggested that the shelter program does not help people in the long term; the City needs educational opportunities so people can learn to support themselves; this is harming the neighborhood and provides for increased crime. Mr. Warren Tessler, 1417 6th St. spoke in favor of the shelter project; he said that it is the community's responsibility to respond to the homeless issues. He spoke against making stereotypical judgments against people who suffer financial hardships. Mr. John Curtis, 3216 Commercial, spoke against the shelter project and said that it invites trouble to the neighborhood. Mr. Richard Bergner 1515, Yokeko Drive, spoke in favor of the all three projects, and specifically supported the shelter project and its organizational team. Ms. Cheryl Lee, 5606 Rosario Way, Shelter Board Member, spoke in favor of the project, and praised individuals from the shelter who have gained employment in the community. Ms. Rosemary Orr, 1617 32nd St., spoke in favor of the family shelter project that would provide protection and accommodations for children. Ms. Jeanne Robinette, 2521 17th St., is familiar with the shelter plan and is convinced that the incentives are in place to encourage residents to live responsible lives; she spoke in favor of the project. Ms. Sally Balmer, 418 4th St., spoke in favor of the project and encouraged the Council to approve this opportunity — the need is there. Mr. Terry Kilo, 7555 Crescent Lane, Vice President Shelter Board, discussed the search to find a facility and spoke in favor of the project. Ms. Mary Thurkelson, 1018 27th St., said that those who were speaking on behalf of the shelter do not live in the neighborhood. Property values have 2 AUGUST 6, 2007 - CONTINUED decreased; there's only limited contact with shelter representatives; neighborhood safety is threatened; and there is a more appropriate place elsewhere. Ms. Jill Burton 1012 27th St., submitted letters against proposal and asked where funding will come from to pay for salaries and facility upkeep; the facility has not been fully utilized. Mr. Francis Orr, 1617 32nd St., member of the Noon Kiwanis Club, supports a facility that will provide decent living quarters and hope to children; he spoke in favor of the project. Mr. Keith Rubin, 915 Haddon Road, shared his experience about emergency housing for a homeless family; there is a need in this community. He spoke in favor of the shelter. Ms. Patty Santangelo, 2510 M Avenue, suggested developing a housing land trust (Orcas Island has developed just such a trust); without a shelter families are separated. She spoke in favor of the project. Mr. Milton Lewis business owner at 27th and Commercial, said that conditions regarding security need to be implemented. Mr. Michael Curtis, 15190 Gibraltar Road, said that this project is a lot of responsibility; there should be strict guidelines to protect the neighborhood. He said that the shelter should not draw people from other communities. Mr. Eric Johnson, Shelter Board President, 2001 Piper Circle, addressed the security concerns. He explained that the Shelter will have complete full time staff, budget and action plans are available to the public; security concerns will be addressed in a number of ways including card key locks, and built-in security features; residents will be screened; 64% of the Shelter residents are from Anacortes; and the success rate is 65%. Mr. Johnson praised the community for providing much needed funding for this project - $100,000 annually. The Shelter is looking forward to working with the neighbors and community on making Anacortes a better place to live. The Mayor thanked everyone for their comments; the comment period is open and written comments are welcome including suggestions for contract conditions. There being no further business, the Mayor adjourned the regularly scheduled August 6, 2007 Council meeting. kll Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell,payor' 7!lAnI Councilmember 2113 August 20, 2007 Special Meeting Mayor Pro -tem Petrish convened the 2:00 p.m. Special Meeting of August 20, 2007. The purpose of the Special Meeting was to conduct a site visit relative to the Segment 5/6 Waterline Project. Mr. Fred Buckenmeyer, Public Works Director, briefed the Council on the waterline project. At the conclusion of the site visit the Special Meeting of August 20, 2007 was adjourned. City Council Minutes August 20. 2007 At 7:30 p.m., Mayor Maxwell called the regularly scheduled meeting of August 20, 2007 to order. Roll call found present Nick Petrish, Erica Pickett, Bill Turner, Cynthia Richardson, and Brian Geer. Absent: Loren Hoboy and Brad Adams. Roll call was followed by the Pledge of Allegiance. Minutes of Previous Meeting Staff recommended the following corrections to the July 16, 2007 minutes: Page 2, T -Mobile "...conflicts of interest appearance of fairness issues; ...to any of the issues raised."; and Page 3, T -Mobile "...location for line of sight technology; ...The project has been designed to fit into the heavily treed site to utilize the surrounding characteristics." With those corrections, Mr. Petrish moved, seconded by Mr. Geer, to approve the minutes of July 16, 2007. Vote: Ayes — Petrish, Pickett, Turner, Richardson, and Geer. Motion carried. Citizen Hearings No citizens present wished to speak on matters not on the agenda. Mayor/Council Communication Mr. Turner reported on the great experience offered by the Depot Farmers Market; the Market will be open through the second week in October and Mr. Turner encouraged everyone to sample the great food, produce, and atmosphere. The Mayor announced the appointment of Ms. Bev Larson to the Arts Commission. The Mayor thanked Ms. Larson and all the City's Board and Commission volunteers for their commitment and service to the community. The Mayor set the following Council Meeting schedule: Continue from the meeting from Monday August 20, 2007 To: Tuesday, September 4, 2007 at 5:00 p.m. in the Municipal Building Council Chambers. The Claims/Vouchers will be approved at that time. There will not be an evening meeting on Tuesday, September 4, 2007. Councilmembers Richardson, Turner, Pickett, and Petrish will be in attendance. Once the Claims/Vouchers have been approved the meeting will again be continued: To: Monday, September 10, 2007 at 7:30 p.m. in the Municipal Building Council Chambers. Once the City Council agenda items have been addressed, the meeting will again be continued: To: Thursday, September 13, 2007 at 5:00 p.m. in order to conduct a site visit in conjunction with the Morand Short Plat Appeal. Meet at 4900 Croatian Way at the end of the cul-de- sac. No testimony will be taken. At the conclusion of the site visit the August 20, 2007 continued meeting of the City Council will be adjourned. The Council will deliberate on the Morand Short Plat Appeal at the regularly scheduled September 17, 2007 City Council meeting. am] AUGUST 20, 2007 - CONTINUED CDBG Plan: Approval Mr. Ian Munce, Planning Director, explained that the City receives an annual Community Development Block Grant (CDBG) of approximately $110,000 from the Federal Department of Housing and Community Development; 15% of the Grant is earmarked for operational work through the Skagit County Community Action Agency (SCCAA). As part of the funding process, the Council is required to update the Plan every three years. The Plan authorizes future actions; as drafted, the current Plan allows for (1) 15% for SCCAA; (2) $12,000/year for 3 years for the regional food bank based in Sedro Woolley; and (3) $75,000 for the Anacortes Shelter Project (Project). If the Plan passes on the Project issue, the contract between the City and the Shelter will come back to Council for approval, although as discussed in previous Hearings, the Project is properly zoned, is well -funded, and can proceed on its own. The Council will decide whether or not to include funding for the Shelter in this 3 -year Plan cycle. Mr. Petrish suggested that the Council should protect the neighborhood surrounding the Shelter as much as possible by imposing strict rules and codes to maintain the safety and environment. Of particular concern to Mr. Petrish was the Shelter's policy to take in anyone; Mr. Petrish assumed that this would be a family facility. He also asked about enforcement of Shelter controls. Mr. Munce explained that the Police Department will handle public safety issues. Mr. Munce also explained the importance of reaching contract agreement with the Shelter Board to secure certain operational parameters/penalties. Although Mr. Turner understood the neighborhood concerns, he offered that this facility will help both families and individuals in need by providing a secure facility; he encouraged the City support such a project. Mrs. Richardson said that the Shelter will have guidelines and bylaws in place that apply to the residents; there will be trained staff to assist the residents on the path to a healthy and productive life. Mr. Geer offered that there was a need for a pretreatment/screening process. Mrs. Pickett shared that more than half of the Shelter clients are working people, and that the facility provides these people with a period to reestablish routine and direction. Mr. Petrish asked that the definition of "homeless" be clarified. With that, Mrs. Richardson moved, seconded by Mrs. Pickett, to proceed with the CDBG application for funding for all three projects. Vote: Ayes — Pickett, Turner, Richardson, Geer, and Petrish. Motion carried. — The Mayor expressed confidence that the community can work together to establish a Shelter facility that will be of benefit and support to all. Contract Award: BHC Consultants: Highwav 20 Waterline Relocation Mr. Fred Buckenmeyer, Public Works Director, presented a request for an extension to an existing contract between the City of Anacortes and BHC Consultants for design and specifications relative to their placement/relocation of 4,800 feet of waterline located in the WSDOT SR -20 right-of-way; design costs are shared with the City of Oak Harbor. With that, Mr. Geer moved, seconded by Mr. Turner, to authorize the extension of the existing contract with BHC Consultants for engineering services for the Stage II Deception Pass Waterline relocation project in an amount not to exceed $67,757.00 without further authorization. Vote: Ayes — Turner, Richardson, Geer, Petrish, and Pickett. Motion carried. Consent Agenda: Mrs. Richardson asked to remove consent agenda item "b". Mrs. Richardson then moved, seconded by Mr. Turner, to approve the following Consent Agenda item: Vote: Ayes — Richardson, Geer, Petrish, Picket, and Turner. 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 August 9, 2007 and August 16, 2007 are approved for payment as of this date August 20, 2007. Claims Warrants Aug, 2007: Warrant Numbers 42445 through 42676 in the total amount of $563,752.87 EFT Aug, 2007: EFT Numbers 42443 through 42444 in the total amount of $126.00 Prewritten Claims 2115 AUGUST 20, 2007 - CONTINUED Aug, 2007: Warrant Number 42444 in the total amount of $18,775.50 Pavroll Auzust 20, 2007 in the total amount of $485,729.98 Warrant Numbers 31199 through 31273 in the total amount of $62,585.05 Direct Deposit Numbers 23347 through 23508 in the total amount of $260,242.07 EFT Numbers 744 through 749 in the total amount of $162,902.86 Accept as Complete: Washington Park Float Repair (Consent Agenda Item "b") Mr. Fred Buckenmeyer introduced a request to accept the Washington Park Float Repair project as complete. On a question from Mrs. Richardson, Mr. Buckenmeyer explained that once the repair project is accepted, a mandatory 30 -day lien period would be initiated. If no liens are filed, any retainage now held by the City would be returned to the contractor. The project was completed on May 23, 2007. With that, Mrs. Richardson moved, seconded by Mr. Geer, to accept the Washington Park Float Repair project as complete. Vote: Ayes — Geer, Petrish, Pickett, Turner, and Richardson. Motion carried. Appeals (2): Subdivision Administrator's Tentative Approval: Morand Short Plat The proceedings are on tape and filed at City Hall. Mr. Ian Munce, Planning Director, explained that, as Subdivision Administrator, he issued tentative approval for a 4 -lot short plat on a 2 -acre site in the R 2 zone generally located at 4801 Anaco Beach Road. Two of the project conditions have been challenged through the appeal process. There is an existing home on the site with three additional sites proposed for a total of four. Mr. Bob Morand, applicant, is appealing Condition # 26: "No homes shall be constructed on this Short Plat until all conditions of Short Plat approval have been met; these conditions include the completion of the five-year monitoring called for in Condition # 14". Mr. Steve Sonnenberg, 4900 Croatian Way, is appealing Condition # 29: "The Public Works Director may require a bond sufficient to ensure the viability of the adjoining public infrastructure, prior to work taking place on site. The amount of the bond and duration shall be determined by the Public Works Director." Mr. Sonnenberg recommends Condition # 29 should read "...shall require a bond..." Mr. Munce provided an overhead drawing highlighting the property location and short plat configuration. He then explained that during recent storms the existing home suffered major erosion to the extent the house was threatened. Skagit County Emergency services gave approval for repairs; some drainage work was done to protect the house; however, another section of the property needed repairs but did not meet the definitions for emergency work. Mr. Morand then applied for and secured a shoreline permit from the Planning Commission for shoreline stabilization (this permit was not appealed); State fisheries issued a separate permit for stabilizing the toe of the bank. Both appellants received a Notice of Appeal outlining the format for written and oral testimony. On a question from Mr. Turner, Mr. Munce explained that the Council can amend the short plat conditions within the scope of the record before them. Mr. Steve Sonnenberg, 4900 Croatian Way, said that he thinks the Subdivision Administrator's decision on this project is solid and deserves the Council's support save for one word. The procedure was well thought out and supports the needs of the community. Mr. Sonnenberg suggested that that the bond called out in Condition # 29 should be required. A bond should be in place to prepare and protect infrastructure. Mr. Sonnenberg thanked staff and the City for the opportunity to participate in the planning process. Mr. Aaron M. Laing, Schwabe, Williamson & Wyatt, spoke on behalf of Mr. Morand. Mr. Laing first asked a procedural question as to how this appeal hearing is to be conducted. He offered that this appeal process should be conducted as an open record public hearing. In that regard, he asked to submit a memorandum outlining legal issues. Mr. Munce explained that the August 1 st Notice of Appeal issued to the appellants explained the appeal hearing guidelines; no objections were received in response to this Notice. Mr. Laing was asked to submit his memorandum and to continue presenting the Morand appeal issues. There were no objections from Mr. Morand regarding the Sonnenberg appeal. With regard to Condition# 26, Mr. Morand recommends that the site be monitored for a period of one year after which time he can proceed with building. Further, Mr. Laing suggested that the 5 -year requirement is not supported by evidence; the Ross report submitted during the previous hearings recommends monitoring through one winter season. He also suggested that the time limits called out in the short plat and shoreline permits AUGUST 20, 2007 - CONTINUED are in conflict with the 5 -year monitoring condition. In conclusion, the 5 -year restriction was unduly burdensome; Council was asked to accept the testimony of Mr. Ross and require monitoring for one year. Mr. Munce said that he understands the practical argument; City staff, the Planning Commission, neighbors, and the applicant struggled with development issues at this site. With regard to procedural questions, the appeal process was clearly communicated to all appellants via Notice; no objections to the Notice were received. Mr. Munce also clarified that the 5 -year monitoring imposed by the Planning Commission on the stabilization permit was not appealed by the applicant. Further, the permit time frames can be met provided the stabilization is done first; no homes can be built until then. Mr. Munce stated that the decision for the monitoring was based on all testimony including that from experts. Plat improvements can be done within the time frame set out in statutes. At the conclusion of the testimony, Councilmembers decided to meet on September 13th for a site visit; the matter will be brought back to the City Council for deliberation and decision on September 17th. Additional written testimony and exhibits will be taken from the appellants and Administrator through September 10th. Councilmembers will submit any questions by August 22nd . Contract Extension — Waste Manaeement Contract Extension Mr. Fred Buckenmeyer, Public Works Director, presented a request for an extension to the current contract with Waste Management for Curbside Yard Waste Service. For the past 13 years, Waste Management Inc. has provided residential curbside yard waste service within the city; the current contract will expire on 8/13/07. Staff recommends extending the current contract until December 31, 2009. The Yard Waste Recycling and Curbside Recycling contracts would then expire at the same time; the City could then issue an RFP for the combined services. The advantages to this action could be a reduction in rates plus the convenience of dealing with only one provider. This proposal was reviewed by the City Council Public Works Committee; with that, Mr. Turner moved, seconded by Mr. Geer, to extend the current "Yard Waste" contract with Waste management, Inc. until December 31, 2009. Vote: Ayes — Petrish, Pickett, Turner, Richardson, and Geer. Motion carried. The Mayor said that, in the past, Skagit County's JRP Committee would negotiate for waste management contracts on behalf of all municipalities; the Mayor asked Mr. Buckenmeyer to work with other Public Works Directors to revive this process. Capital Facilities Plan/New Proiects Mayor Maxwell opened the Public Hearing to take comment on proposed new projects to be incorporated into the 2008-2013 Capital Facilities Plan. Ian Munce provided the background on why a Capital Facilities Plan is required to show how the City can support growth. The City must demonstrate concurrency in facilities. Mr. Fred Buckenmeyer, Public Works Director, discussed the various projects: including Commercial Avenue overlay from 12th to 2nd street designated for 2009 — that will coincide with the proposed Department of Transportation overlay on the remainder of Commercial — also scheduled for 2009. Mr. Buckenmeyer then highlighted the significant projects in Transportation, Water, Sewer, Storm, and Equipment Rental. The most significant of the new waterline projects is corrosion repair in 2010. Mr. Buckenmeyer also discussed the Skyline dredging project and funding methods; it is a complex project but the City is committed to facilitating this process. Also, a pool car will be replaced with a hybrid vehicle. There were no public comments on the new projects to be incorporated into the CFP and the Mayor declared the Public Hearing closed. Resolution of 2003 Unfair Labor Practice Mr. Ian Munce, City Attorney, read the following Public Employment Relations Commission Notice: "The Public Employment Relations Commission, a State agency, has held a legal proceeding in which all parties were allowed to present evidence and argument. The Commission has found that we have committed unfair labor practices in violation of a State Collective Bargaining Law, and has ordered us to post this Notice to our employees: 2117 AUGUST 20, 2007 - CONTINUED WE WILL reimburse City of Anacortes employees, who are members of the bargaining units represented by the Anacortes Police Services Guild, for their portion of medical insurance premiums paid as a consequence of the employer not maintaining 100 percent employer -paid insurance premiums beginning on January 1, 2004. WE WILL NOT, in any other manner, interfere with, restrain, or coerce our employees in the exercise of their collective bargaining rights under the laws of the State of Washington." The Notice was read into the record and posted at City Hall There being no further business, at approximately 9: 20 p.m. the Mayor continued this meeting in the following manner: see Mayor/Council Communications above. 'ho /0 Steven D. Hoglund, City Clerk -Treasurer r4 ncilme -#.&_ H. Dean Maxwell, ayor City Council Minutes - Continued Meeting of August 20, 2007 September 4th; September 10th; September 13th September 4, 20071 At 5:00 p.m., Mayor pro tem Nick Petrish reconvened the continued meeting of August 20, 2007. Roll call found present: Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, and Cynthia Richardson. Absent: Bill Turner and Brian Geer. The Finance Director, Mr. Steve Hoglund, was present. With regard to claims approval, Mrs. Richardson moved, seconded by Mr. Hoboy, to approve the claims as presented. Vote: Ayes — Hoboy, Petrish, Pickett, Adams, and Richardson. Motion carried. At approximately 5:03 p.m., Mayor pro tem Petrish continued the meeting to the evening of September 10, 2007 at 7:30 p.m. in the Municipal Building Council Chambers. September 10, 20071 At 7:30 p.m. Mayor Maxwell reconvened the continued meeting of August 20, 2007. Roll call found present: Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson, and Brian Geer. Proclamation: 9-1-1 Dav Mayor Maxwell read a Proclamation establishing September 11, 2007 as 9-1-1 Day in the City of Anacortes. The Mayor urged all citizens to express appreciation for and to recognize the public safety providers who work every day to ensure the health and safety of the citizens of our community. Proclamation: Senior Center Month — Update on Senior Center by Sally Hill Mayor Maxwell read a Proclamation establishing September 2007 as Senior Center Month in the City of Anacortes. The Mayor urged all citizens to recognize the special contributions of the senior center participants, and the special efforts of the staff and volunteers who work every day to enhance the well- being of the older citizens of our community. In particular, Mayor Maxwell expressed appreciation for the excellent care his mother received from the Center. Ms. Sally Hill, Senior Center Coordinator thanked the Mayor and Council for the opportunity to call attention to national Senior Center Month. Additionally, Ms. Hill highlighted the outstanding volunteer and staff commitment to providing quality care and assistance to our senior citizens. A Vision Committee has been formed to anticipate upcoming changes in the growing senior community. A recent survey revealed that one of the most desired activities is for day and extended field trips; future needs may also include more computer training, better transportation, and additional programs to improve and maintain health. With regard to the Center's meal program, Ms. Hill reported slow but steady growth in participation. The lunch program is now open to everyone and reservations are no longer necessary; this change in policy has resulted in a 21% increase in participation. In conclusion, Ms. Hill announced that on September 11th at 2:00 p.m. the Center will host an ice cream social at the Senior Center to acknowledge its many volunteers. Adoption of 2008-2013 Capital Facilities Plan by Ordinance Mr. Steve Hoglund, Finance Director, presented an Ordinance to Council adopting the Capital Facilities Plan (CFP) for the 6 -Year Period 2008-2013. On August 20, 2007 the new projects to be added were reviewed and incorporated into the Plan now before Council. Mrs. Pickett suggested that a roof for the bicycle rack be added to the City Hall improvement proposal. The Mayor remarked that a CFP is required by the State's Growth Management Act; also, the CFP is one of the required elements of the City's Comprehensive Plan. The upcoming City Budget will incorporate some of the CFP projects depending on funding and further prioritizing. After discussion, Mr. Hoboy moved, seconded by Mr. Geer, to adopt Ordinance No. 2768 entitled "An Ordinance Adopting the Capital Facilities Plan (CFP) for the 6 -Year Period 2008-2013." Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Mavor's Budqet Message Honorable City Council Members/Community of Anacortes I am pleased to submit the proposed 2008 budget for the City of Anacortes for your review, comment and action. The proposed 2008 budget totals $43,398,079; and represents an 11.4% decrease from the adopted 2007 budget of $48,955,681 due to a reduction in capital projects, mainly the new 36" waterline. The proposed budget utilizes real estate excise tax, impact fees, and general facility charges to build new parks and trails, improve streets and intersections, continue our street overlay program, pour sidewalks, improve existing parks, and maintain the City's strong investment in our utility infrastructure. The following is an overview of some highlights related to this budget preparation year (2007) and to the 2008 projected budget: Administration/General Departments worked closely with Finance and my office to prepare a budget that provides high levels of service to our community within the parameters of a 1% property tax increase. The City continues to maintain strong Restricted Reserves in all our funds. The 2008 budget is a balanced budget, and Anacortes continues to be one of the lowest taxing cities in Skagit County. Property tax revenues largely fund operations of the City's general government departments; Police, Fire, Museum, Parks, and Library (all departments excluding the utilities). 2119 CONTINUED MEETING OF AUGUST 20, 2007 The City will continue its strong support of the region's social needs with $28,500 contributed to Skagit County Senior Services for staffing needs; $5,000 budgeted for our local Food Bank Emergency Fund; $10,000 budgeted towards a regionally shared Energy Conservation Resource Manager; $20,000 for the Skagit County Community Action Agency; and this year $10,000 is budgeted for the Anacortes Chapter of the Skagit County Boys and Girls Club. Our local club supports over 200 members, 40% of whom qualify for the public schools' reduced lunch program offered for those with financial needs. Public Safetv Police: The Police Department enters 2008 with all budgeted positions filled. All current programs will be maintained. Updating equipment and training in areas of patrol and investigations will continue. The department is in the process of completing their accreditation program. The build out of the tactical police radio channels for countywide use will be ongoing. Crime prevention and associated community policing activities will continue to have high priority. There is specialized required training in the 2008 budget targeted toward dealing with mental health patients who require special handling. Fire: The Fire Department continues to maintain a high level and quality of service. We are responsible for Advanced Life Support needs for residents of Fidalgo and Guemes Islands. As of July 2007, we have located Firefighter/Paramedic and Firefighter/EMT staff out of Fire District #13's station providing response to the March Point area during the daytime hours. We very much appreciate this accommodation. By this fall, the City will have its own temporary station operational at March Point, providing faster response time for fire suppression, and paramedic and ambulance service to residents of the City, and medical patients outside the City. The City annexed the March Point area in 1999 and has been working to establish sewer, police, and fire/emergency medical services. The additional services will predominately be funded by sales tax revenue from the March Point area set aside for fire/EMS services, an appreciably higher negotiated EMS subsidy, and a modest increase in ambulance billing rates. Public Works The City of Anacortes has seen substantial growth in the past decade. The Growth Management Act set aside specific fees and taxes to enhance those communities absorbing the impacts of growth. The City has received substantial revenues in impact fees for streets and parks and real estate excise tax on the sale of homes in our city limits, as well as utility hookup fees. The 2008 budget takes advantage of these moneys and uses them on projects that will greatly enhance our City streets, sidewalks, and utility infrastructure. Streets/Trails: The budget for the sidewalk program will continue to be funded at $100,000 in 2008. The City continued its commitment to the Community Business District with $236,000 in the budget for the utility infrastructure and sidewalks. The 2008 budget also has a substantial street overlay improvement program with $461,000 to upgrade City streets. Another important project included in the budget is $225,000 to continue the Guemes Waterfront Trail. Also in 2008, $666,000 is budgeted for the Pennsylvania Avenue road connection to Kingsway and Skyline. Water Treatment, Transmission and Distribution: The 2008 budget includes $4,000,000 for final costs of the 24" Waterline Replacement Project Segments 5 & 6. This 36" replacement of the final section of 1920's vintage 24" water transmission main will conclude in 2008. The continuing design effort for the water treatment plant upgrade is included in the budget in the amount of $1,100,000. The new sedimentation process will reduce turbidity loading on the existing filters and expand our water treatment capability. The 2008 budget will complete Stage 2 of the Deception Pass 10" waterline relocation in preparation for Highway 20 widening in the amount of $750,000. Wastewater Treatment, Collection, and Conveyance: The Wastewater budget includes funding for significant improvements to the infrastructure from the general facility charges for new hookups. The 2008 budget will provide $125,000 to complete a pump station upgrade. Additionally, $135,000 is budgeted for flow blending reduction, and $115,000 for a solids filtrate pump station upgrade. Our water system plan will also be updated in 2008. Storm Drainage: Similar to the Wastewater budget, the general facility charge has accumulated to a level that will allow for infrastructure improvements. The 2008 budget includes funding of $60,000 for infiltration and inflow reduction, and $45,000 for storm drain outfall reconstruction. Equipment Rental and Replacement: The ERR fund continues to monitor and serve the City's equipment requirements with $717,974 budgeted to replace aging equipment in 2008. Equipment scheduled to be purchased includes a new front loading garbage truck, three police cars, and a new "green" hybrid vehicle for use as a "pool car" replacing an older Crown Victoria in our pool car fleet. We are also looking at an "electric clean vehicle" for use by park employees at Washington Park. 2120 CONTINUED MEETING OF AUGUST 20, 2007 Library The Library will focus on increasing its book inventory in the upcoming year. Budget for books and periodicals totals $52,839, which is a 65% increase over the prior year's budget. The Library is a great source of pride for the City and is experiencing heavy use. 70% of area residents have library cards which allow them to check out materials and access electronic resources from home. If you have a Library card you can access Chilton's Auto Repair Manuals on line on the Library website. In addition to the approximately 155,000 items that have been checked out by library patrons through July 2007, many newspapers and current magazines are used in the library on a daily basis by residents and visitors alike. There are many more very popular adult programs scheduled in 2008 and the second Sunday of each month we offer Jazz music at the Library as part of the Manieri Jazz bequest. Free internet access at the Library is highly used by our residents and visitors to our community. Legal/Courts The 2008 Court budget is relatively unchanged from 2007. The major unanticipated expense has been the cost of protecting our water rights from precipitous actions by Skagit County. Our wholesale customers are supportive and are baring 90% of these regrettable, but necessary water fund charges. Planninq No major new planning initiatives are reflected in the 2008 budget. Planning activity remains at a fairly consistent rate, which is reflected by a budget comparable to that of 2007. Human Resources The City continues to be concerned with the rising cost of healthcare, and is taking a proactive approach to contain costs with continued active participation on the advisory benefit committee of our Benefit Trust. The 2008 budget provides for management and employee training to proactively address employment issues. It also provides for additional resources for employment advertising as attrition due to retirements are expected to increase. Museum In the current year the Museum has exhibits of local historical interest and significance, and is developing exhibits for the coming year at both the main gallery and the WT Preston Heritage Center. In 2008, the Museum's Carnegie Gallery will undergo an off-season renovation that will hopefully include the addition of a handicapped lift. The Museum handles research inquiries and educational outreach on a regular basis, and is producing its fourth book on topics of local interest. Parks Growth in Anacortes has provided additional Park impact fees and real estate excise taxes that are used in 2008 to fund several major Park projects. Additionally, the 2008 budget provides $175,000 to expand and improve our existing cemetery. There is $30,000 budgeted for Volunteer Park improvements in the 2008 budget, as well as $100,000 for Depot area improvements; the City also hopes to obtain grants and donations to do major improvements including an expanded plaza area, landscaping, and wetland and madrona grove preservations. The Parks Department will be hiring an additional full-time maintenance position in 2008 by combining an existing half-time position with a new half time allocation. The ACFL Conservation Easement Fund continues to be a huge success. Community support of this program is over $1,500,000 to date. The 2008 budget is fiscally conservative reflecting these times. All major projects have been funded through the accumulation of impact fees, real estate excise tax, and our utility general facilities charges. The street projects, parks, and utility enhancements will maintain and improve the excellent quality of life in our community that makes Anacortes such a beautiful place to live. In conclusion, the Mayor said that he is looking forward to the Council's and community's input regarding the 2008 budget. T -Mobile Findinqs Mr. Ian Munce, Planning Director, presented the Final Findings of Fact and Conclusions of Law for the T - Mobile Conditional Use application to locate a wireless communications facility at 2201 "H" Avenue. The City Council voted to deny the request and directed staff to prepare the Findings of Fact reflecting that action. Adoption of the Findings will initiate the 21 -day appeal period. Attorney Rosemary Larsen with Ensley Best assisted in preparation of this document. Mrs. Richardson offered that the Findings accurately reflect the Council's deliberation on T -Mobile's proposal. With that, Mrs. Richardson moved, seconded by Mr. Turner, to adopt the Findings of Fact and Conclusions of Law and Decision on T - Mobile's Conditional/Special Use Permit Application to Locate a Wireless Communications Facility (WCF) at 2201 "H" Avenue. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. Motion carried. Interlocal Agreement with Sedro Woollev (SR 20 Intersection Improvements) Mr. Fred Buckenmeyer, Public Works Director, explained that WSDOT requires an agency to have certain certifications in order to spend and manage federal monies; the City of Sedro Woolley recently lost that certification. Because of that, Sedro Woolley has asked Anacortes to assist in two improvement projects 2121 CONTINUED MEETING OF AUGUST 20, 2007 by acting under its Certification Acceptance Agreement. Mr. Buckenmeyer also said that the Sedro Woolley project will be managed by the firm of Reichhardt & Ebe Engineering. The scope of work involves improvements to two highway intersections. Mr. Petrish suggested clarifications to Pages 2, 8, and 10 and asked for definition of language in the Industrial Insurance Waiver section. Mr. Buckenmeyer explained that the City's ongoing projects will not be affected by this support. Mrs. Richardson asked that the term man hour estimate be changed to read preliminary labor estimate. Mr. Hoboy supported this effort to assist the City of Sedro Woolley and moved to authorize the Mayor to enter into an Interlocal Agreement between the City of Anacortes and the City of Sedro Woolley for the SR 20/F & S Grade Road Intersection Improvement Project. Mr. Geer seconded the motion. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. Executive Session (60 minutes) At approximately 9:30 p.m. the Council and Mayor convened in Executive Session to discuss litigation. At approximately 10:30 p.m. the Council reconvened and without taking any further action, continued the meeting. On Thursday, September 13, 2007 at 5:00 p.m. the Council conducted a site visit relative to the Morand Short Plat appeal. At the conclusion of the site visit the continued meeting of August 20, 2007 was adjourned. ,/�A40 -,1.a. Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwo, Mayor (&�undl r 2122 September 17, 2007 At 7:30 p.m., Mayor pro tem Petrish called the regularly scheduled meeting of September 17, 2007 to order. Roll call found present Loren Hoboy, 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 Meetinas Mr. Adams moved, seconded by Mrs. Pickett, to approve the minutes of July 23, 2007 and August 6, 2007 as if read. Vote: Ayes — Pickett, Petrish, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Mayor pro tem Petrish announced that item 7 e will be removed from the Council agenda; in that regard, a Public Hearing will be scheduled for the Stormwater Comprehensive Plan Adoption and the public so notified. Mavor/Council Communication The Council reviewed letters of interest from two Library Board candidates. The Library Board of Trustees recommends the appointment of both applicants; Mayor Maxwell concurs with the Board's recommendation. After discussion, Mr. Turner moved, seconded by Mrs. Richardson to (1) confirm the immediate appointment of Patricia Pattee to the Anacortes Library Board of Trustees, and to (2) confirm the appointment of Mr. Harry Finks to the Anacortes Library Board of Trustees effective January 1, 2008. Mr. Finks will be filling the position vacated by Ms. Margaret Frey. Vote: Ayes — Petrish, Adams, Turner, Richardson, Geer, Hoboy, and Pickett. Motion carried. Citizen Hearinqs No one in the audience wished to speak on matters not on the agenda. Conservation Easement Proqram: Final Approval of Groves Mr. Jonn Lunsford, Anacortes Forestlands Manager, presented a September 12, 2007 memorandum outlining the next 170 acres to be protected through the Conservation Easement Program. If approved, a permanent easement would be placed on these 170 acres bringing the total forestland acres conserved through this program to 1,450. The Council's information packet includes the legal description and maps showing the grove location. Council noted that the community has donated over $1.5 million toward this significant conservation program. After discussion, Mr. Adams moved, seconded by Mr. Geer, to place a permanent conservation easement on these 170 acres. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Pickett, and Petrish. Motion carried. Morand Short Plat Aaaeal Mr. Ian Munce, Planning Director, by way of background, explained that the City has administrative approval for the subdivision of property up to 9 lots. The matter now before Council involves a 4 -lot short plat generally located at 4801 Anaco Beach Road; the applicant is Mr. Bob Morand. Mr. Munce said this project has been extensively reviewed by City staff; the existing home on the east side of the property was constructed over 10 years ago. A geotechnical report prepared for the project forecast that a home could be built there without long-term issues; however, subsequent major storm activity caused substantial erosion on the bluff. At that time, Skagit County issued an emergency declaration followed by approval from the Department of Fish and Wildlife to perform emergency drainage work together with stabilization at the toe of the bank below the existing home. The City also required re -vegetation of the site; that work was not completed. The applicant then moved forward to secure both a City of Anacortes Shoreline Permit and State Department of Fisheries approval to stabilize the toe of the bank. In order to fund the stabilization work, Mr. Morand applied for 4 -lot short plat approval. Mr. Munce, as the Subdivision Administrator, recommended approval of the division of land subject to conditions including authorization for the installation of drainage and subdivision improvements provided that site monitoring be done for five years before any homes are built; the applicant appealed this condition (# 26). A second appeal was received from Mr. Steve Sonnenberg, 4900 Croatian Way; Mr. Sonnenberg asked that Condition # 29 language be modified to change the word "may" to "shall" with regard to the bond requirement. Both appellants outlined the basis for their appeals at the August 20, 2007 Council meeting. Subsequently, Council authorized submission of additional material for review; a September 6, 2007 memo from Ross Barnes regarding alternate road access was also included in the study packet. Mr. Munce suggested that the Council, based on the record before them, can ask questions of the appellants and staff, and can review/modify the entire project. Discussion followed regarding the different permit time frames. Mr. Aaron M. Laing, Schwabe, Williamson & Wyatt, representing Mr. Morand, referenced a condition contained in the Mitigated Determination of Non -significance issued by the City for this project; the condition calls for monitoring for one full winter season — a condition supported by the geotechnical and scientific information submitted during the review process. Therefore, Mr. Laing claimed, the five year moratorium time frame is not based on any information contained in the project record. Mr. Steve Sonnenberg, appellant, said he wasn't concerned when, or if, any construction takes place so long as it is safe to do so; he emphasized that sufficient health and safety concerns exist, hence the need to have adequate bonds in place once the actual site work begins. 2123 September 17, 2007 - CONTINUED Mr. Hoboy asked the project engineer for an update on any technical studies related to this project. On a question from Mr. Geer, Mr. Munce explained that it is well within the City's authority to require bonds on projects related to the seriousness of risk and scale of the project. Mr. Geer suggested a two-year monitoring period together with substantial bonding. Mr. Hoboy observed the development issues on the Council site visit; based on what he observed he questioned whether it was appropriate to build on this site. He pointed out the natural springs occurring in this area; the instability of the slope; he suggested that it would be irresponsible to place homes at the base of the hill. He also pointed out the risk to Anaco Beach Road, the 2" exit from the Skyline area. He said the data is insufficient to make a decision. Mr. Turner also said that testing or engineering must be done to indicate that one-year monitoring would be sufficient; investigation needs to be done to determine why the first drainage system failed. He also expressed concern over potential damage to Anaco Beach Road; he spoke in favor of sufficient bonding. Mr. Adams asked the applicant's engineer, Mr. Jim Schemmer, to explain the plan for the stabilization; he also asked if scientific data exists to confirm that the plan will correct the problem of shoreline erosion. Mr. Schemmer said the analysis was done by MTC, in part, by using deep borings; he also reviewed the history of the application process with the City. He suggested that previous City action denied the opportunity to do repair work and the predicted damage to the property occurred; detailed studies show where the surface conditions have changed; the original plan accommodates the subsurface conditions. Mr. Turner asked for an explanation as to what happened at this site and how to avoid this in the future. More questions followed regarding slides and erosion activity. Mrs. Richardson said that it wouldn't be prudent to approve roadway and home construction until the repair work has been successfully completed. She offered that storms and landslides are substantial evidence supporting the requirement for a monitoring period; this is a unique site that warrants careful consideration. Staff stipulates to the fact that there are detailed engineering drawings for the construction of the shoreline stabilization. On a question from Mr. Geer, Mr. Schemmer said that during an earthquake, reports show that this property would not experience catastrophic damage. Mrs. Pickett clarified that Mr. Morand has a shoreline permit in place to construct the armoring at the base of the cliff. Development cost estimates and construction timetables were discussed. Mr. Munce clarified that the development of 3 building sites requires a completely different review process than that required for a shoreline permit to protect an existing home. The applicant has chosen to tie his shoreline permit work with the short plat development; however, City staff will need to see more detailed work on the specifications for the access road, drainage, building pads, and so on. Discussion followed regarding reconfiguring the plat, no interior road, new conditions, and protection for Anaco Beach Road. Mr. Fred Buckenmeyer, Public Works Director, discussed future Anaco Beach roadway repairs should Mr. Morand choose not to do the stabilization work. Mr. Petrish read a portion of Mr. Laing's letter. Mr. Adams moved to approve the short plat, and that building permits can be issued after a 3 -year period provided proper monitoring is done. Mr. Geer seconded the motion. Mr. Adams agreed to add, as part of his motion, an amendment to condition 29 requiring a bond in an amount to be established by the City Council; Mr. Geer agreed to the amendment. Mr. Turner moved, seconded by Mrs. Richardson to amend the motion to have the City conduct a third party engineering and geotechnical review. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Pickett, Petrish, and Adams. Motion carried. Mr. Hoboy moved, seconded by Mrs. Richardson to amend the motion that there would not be a road to the project from Anaco Beach Road. Based on this requirement, lot reconfiguration may be necessary; Mrs. Richardson asked if revised drawings could come back to Council; Mr. Munce answered that revised drawings could be reviewed along with the bond discussion. Discussion followed regarding the applicant's financing package and the limitation to the project that these amendments would cause. Mr. Adams said that this amendment would totally change the whole project. Vote: Ayes — Richardson, Geer, Hoboy, Pickett, Petrish. No — Adams, Turner. Motion carried. Mr. Munce explained that these amendments are clarifications to the existing conditions: (1) Building permits may be issued after 3 years provided proper monitoring is done (2) a bond shall be posted in an amount established by the City Council; (3) a third party engineering and geotechnical review shall be conducted by the City (4) no interior road may be constructed. Mrs. Richardson moved that at the end of the 3- year monitoring period, which period shall begin at the completion of the stabilization work, that this matter shall be brought back to Council with the engineering and staff recommendations to confirm that the conditions have been completed and the site is ready for issuance of building permits. Mr. Hoboy seconded the motion. Mr. Turner asked about the criteria for staff to make this determination. Mr. Fred Buckenmeyer, Public Works Director, explained that the 3`d party engineer will certify the stabilization. Vote: Ayes — Geer, Hoboy, Pickett, Petrish, Adams, Turner, and Richardson. Motion carried. Mr. Adams said that out of fairness to the applicant, he could not support this action. Vote on the main motion, including amendments: Ayes — Hoboy, Pickett, Petrish, Richardson, and Geer. No — Adams, and Turner. Motion carried. The Findings of Fact and Conclusion of Law will be brought back to Council for adoption on October 1, 2007. Comcast Franchise City Attorney Ian Munce introduced Mr. Scott Thomas, Burlington City Attorney; Mr. Thomas has been supporting the City of Anacortes during franchise negotiations with Comcast. The draft Franchise has been reviewed in Study sessions and the City has received public comment on this issue. Mr. Thomas 2124 September 17, 2007 - CONTINUED submitted an August 18, 2007 Memorandum to the Council outlining the key issues with regard to the FCC implemented rules and the proposed revisions to the 1996 Telecommunications Act; he also discussed the trend of traditional telephone companies to move toward delivering programming over phone lines. In particular, Mr. Thomas pointed out two key issues (1) status of the agreement including a neutrality provision - Section 2.6 Competitive Equity; and (2) the City's current government channel— the City would have the option to request an additional government channel; Comcast would have 180 days to comply. This new channel would come with a requirement to provide local content programming. Additionally, the Public Works requested drawings of Comcast equipment located within City streets and to make certain that if Comcast did rip up the streets that Comcast would repair them appropriately. Additionally, the Finance Department will receive quarterly revenue reports; the franchise fee is in the amount of 5% of gross revenues, and the City has the option to audit the books. After discussion, and thanking Mr. Thomas for his support, Mr. Hoboy moved, seconded by Mr. Turner, to adopt the Comcast Franchise as presented. Vote: Ayes — Pickett, Petrish, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Consent Aqenda Mrs. Pickett moved, seconded by Mr. Geer, to approve the following Consent Agenda items. Vote: Ayes — Petrish, Adams, Turner, Richardson, Geer, Hoboy, 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 September 6, 2007 and September 13, 2007 are approved for payment as of this date September 17, 2007. Claims Warrants Sept, 2007: Warrant Numbers 42836 through 43064 in the total amount of $488,859.75 Prewritten Claims Sept, 2007: Warrant Number 42831 through 42833 in the total amount of $3,009.67 EFT Sept, 2007: Warrant Numbers 42834 through 42836 in the total amount of $198.00 In the same motion Council: Adopted Ordinance No. 2769 entitled "An Ordinance Repealing Ordinance No. 2739 Identifying an Agent to Receive Damage Claims and Identifying City Clerk Steve Hoglund". Final Plat: "J" Avenue Cottages PUD Mr. Ian Munce, Planning Director, presented the "J" Avenue Cottages PUD Final Plat application to Council. The 8 -unit project contains a one-way public street, smaller cottage style units, and an interior courtyard. The applicant is asking for acceptance of all public improvements; Mr. Munce referred to an August 29t" memorandum from Steve Lange, Engineering Department, stating that the project is ready for acceptance subject to a performance bond in the amount of $89,175.00. The Planning Commission reviewed this same material on September 5t" and recommended approval subject to the performance bond. With that, Mr. Turner moved, seconded by Mrs. Pickett to approve the "J" Avenue Cottages Final Plat subject to a Performance Bond in the amount of $89,175.00. Vote: Ayes — Adams, Turner, Richardson, Geer, Hoboy, Pickett, and Petrish. Motion carried. Appeal of the Subdivision Administrator's Tentative Approval: Nelson Short Plat Mr. Ian Munce, Planning Director, presented an appeal of his decision to approve a 9 -lot short plat at 4004 "H" Avenue; the applicants are Larry and Amber Nelson. Mr. Munce explained that there were no staff issues with this proposal; however, the basis of the appeal is a property line dispute raised by the neighbor to the west, Pat D. Mooney. Mr. Hoboy recused himself from deliberation on this matter. Using an overhead drawing Mr. Munce pointed out the key features of the property; he concluded that the fence/boundary line issue does not change the character of Lot 9 as a buildable lot, nor does it affect his approval of the short plat. Mr. Pat Mooney, 2010 41St St., objected to the short plat approval based on encroachment of 20 feet over an established fence line maintained for over 55 years. The fence has been considered a boundary marker since before 1974; the fence has never been moved. He then read from letter from his attorney, Mr. Jim Anderson, stating that a survey of the property defines the fence line; a note on the survey suggests that the fence may create an issue with regard to ownership. Mr. Theodore VanderWel, attorney for Mr. Nelson, said this is a bona fide boundary dispute and that the Mooney's should file a quiet title action to address the issue. His client has a deed to the property including the area under dispute; Mr. Nelson has paid taxes on the property and installed utilities clearly exercising his rights of control and possession. Through this action, the City has been notified of the dispute; however this is not the forum to adjudicate the boundary line dispute. Mrs. Richardson concurred, and moved to deny the appeal and to approve the Nelson Short Plat # 04-001; Mrs. Richardson clarified that, through this action, the City is not adjudicating the boundary line dispute. Mrs. Pickett seconded the motion. Vote: Ayes — Turner, Richardson, Geer, Pickett, Petrish, and Adams. Motion carried. Mr. Mooney stated that a Complaint to Quiet Title has been filed in the Superior Court. Mr. Hoboy returned to the Council Chambers. 2125 September 17, 2007 - CONTINUED Sunset Cove Trail Easements Mr. Jonn Lunsford, Forestlands Manager, addressed an issue brought to the City's attention regarding trail easements in the Washington Park Estates and Sunset Cove subdivisions. There are a series of pedestrian trail easements through these plats and Mr. Lunsford identified the trails via an overhead display. Citizens have asked staff to address the walking trail through Lots 24 and 25; the path is difficult to traverse. Mr. Rick Etsell, 2618 Washington Blvd. (Lot 25) explained that the easement is actually on Lots 24 and 25; easements in other areas of the plat are dedicated and maintained by the Homeowners Association. Ms. Jackie Etsell suggested that the platting mistake was made at the planning level. There's very little space between the two homes and the path is on a steep slope; a path between these two houses would be intrusive and wouldn't provide better access than the dedicated trails. Mr. John Holmes, who lives three blocks away, handed photographs of the area to the Council; he agreed that this is not a place for a path; the homes were built too close together. Mr. Ron Telles, President of the Sunset Cove Development Homeowners Association, 2805 Washington Blvd., stated that the Board is opposed to building trails in this restrictive fashion. Mr. Paul Allen, 2719 Washington Blvd., said the other existing pathway is perfectly accessible. Mrs. Pickett suggested that the Council conduct a site visit; Mr. Geer suggested that the easement between Lots 24 and 25 is too narrow and that the Observation Lane trail is adequate. Mrs. Richardson reviewed the intent of the Planning Commission during the development of this plat with regard to pedestrian connections; she suggested that the developer has created a conflict with the Commission's intent. Mr. Turner said he didn't need a site visit and that it was a reasonable request of the property owners to have the path removed. Mr. Ian Munce, Planning Director, recommended that any amendment to the plat should be handled through the public hearing/notice process. Mr. Hoboy cautioned about setting a precedent; he suggested mitigation and alternative layout proposals. A Public Hearing will be scheduled regarding a modification to the plat to delete the easement on lots 24 and 25; a site visit will be scheduled. Communitv Service Work Contract — Anacortes Parks Foundation. Mrs. Pickett moved, seconded by Mr. Adams, to authorize the Mayor to enter into a contract with the Anacortes Parks Foundation for the purpose of constructing portions of Volunteer Park. Mr. Gary Robinson, Parks Director, explained that this contract process has been an effective way to coordinate volunteer/paid efforts. Mr. Adams also highlighted Mr. Doug Colglazier's dedication to the development of these public parks. Vote: Ayes — Richardson, Geer, Hoboy, Pickett, Petrish, Adams, and Turner. Motion carried. 2008 Water Svstem Plan-Hvdraulic Model Mr. Fred Buckenmeyer, Public Works Director, explained to Council that the next update to the City's Water System Plan is scheduled for 2008; as part of the update, the building and calibration of a water distribution system hydraulic model will be required. The model will allow for the analysis of impacts related to new development and changes in existing water distribution infrastructure; the Model will also analyze flow rates interconnections. HDR Engineering can build and calibrate a hydraulic model utilizing existing City data. The contract now before Council would authorize that work to be done. After discussion, Mrs. Pickett moved, seconded by Mr. Geer, to authorize the Mayor to enter into a contract with HDR Engineering to complete the hydraulic model as Phase I of the 2008 Water System Plan in the amount of $40,953.00 Vote: Ayes — Geer, Hoboy, Pickett, Petrish, Adams, Turner, and Richardson. Motion carried. At approximately 10:30 p.m. the Mayor pro tem continued the meeting to Monday, September 24, 2007 at 7:30 p.m. to resume the Closed Record Meting for the Leeward Conditional Use Permit. Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell ayor r, CCcilraa er 2126 City Council Minutes — September 24, 2007 Continued from September 17, 2007 At 7:30 p.m., Mayor Maxwell reconvened the continued meeting of September 17, 2007. Roll call found present: Loren Hoboy, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson, and Brian Geer. Mavor/Council Communication Mayor Maxwell: (1) reported that the Oyster Run was a successful event; (2) reported that the City recently completed the installation of 1,600 feet of 36" pipeline underneath the Skagit River — this task is crucial to the Segment 5 and 6 waterline project; (3) shared a letter with the Council and audience from a resident on Oakes Avenue; the water crew installed a meter at this location and the homeowner praised the City's courteous, kind, and efficient City staff (Eric Pearce, Jeff Beltramini, and Travis Beaner) who assisted in the installation. Closed Record Meetinq: Leeward Conditional Use Mayor Maxwell initiated the Closed Record Meeting for the Leeward Conditional Use Permit application (including limited remand and appeals.) Mr. Ian Munce, Planning Director, highlighted the procedural issues associated with this project. The Leeward Condominium/Hotel project (40 condo units and a 20 unit hotel) was reviewed in Public Hearing and Closed Record Hearing by the Planning Commission and Council; specific issues were remanded to the Planning Commission for review and recommendation. Under the current zoning code, for the hotel structure to be built above 35', an affirmative vote is required from both the Planning Commission and the Council; the Commission did not support going above 35'. Also with regard to jurisdiction, the Planning Commission issues Shoreline Permits; Shoreline Permit # 299 was issued by the Planning Commission on September 5, 2007 for the Leeward project subject to 32 conditions. However, the Shoreline Permit has not been forwarded to the Department of Ecology pending the outcome of Council decision on the associated Conditional Use application. A number of letters of concern were received the adjacent Portalis homeowners; the sewer pump station as well as the location of the cul-de-sac are significant issues. The Council can consider adjustments to both. The property is zoned Commercial Marine and the hotel is permitted outright; the condos require a Conditional Use Permit. Findings of Fact and all exhibits were forwarded to Council prior to this meeting. Other significant issues: (1) title to wetland and wetland buffer at Ship Harbor - significant trees are in the buffer; transfer of ownership should take place before any clearing occurs; (2) the building design includes view corridors; (3) the Planning Commission recommended approval of the original building placement design; (4) question of a fire lane next to the esplanade - detailed engineering shall be done on the turnaround and brought back to PC; (5) question of whether or not the cul-de-sac can be moved up the hill as requested by the applicant; (6) public restrooms and 15 parking spaces were proposed; (7) the applicant requested credit for the easement to take the stormwater from the whole drainage basin and place in the Ship Harbor wetland; (7) an approved site plan must be identified. The Mayor then opened the meeting to the appellants. Ms. Arlene French, 1411 81" Street, spoke on behalf of Ms. Phyllis Dolph. Ms. French proposed four conditions that would, she offered, prevent land clearing errors (1) orange fencing and tagging trees, and to have Don Measamer on site; (2) orange fencing and taping of trees to be saved before the footprint of the condo is finally located; (3) protect the osprey nest and certain trees with extra orange fencing (4) follow the tree ordinance, specifically sections 16.40.100 and 16.50.080. Ross O. Barnes, 1004 7t" Street, speaking on behalf of himself, Evergreen Islands, and Gene Derig, addressed the following issues: there's adequate area to locate a public bus parking facility; need for better protection of the shoreline buffer; larger trees need better protection; condos should not be constructed without hotel/transient lodging facility. Language in Condition # 18 should be clarified. Mr. Gene Derig, 1302 "K" Avenue, speaking on behalf of himself, Evergreen Islands, and Ross Barnes, addressed Condition # 33 and spoke against placing a general purpose trail in a wetland buffer. He also referred to Condition # 28 - stormwater regulations contain flow through and across the Leeward property to the wetland from the natural watershed; and he identified the essential need to increase the height restriction beyond 35'. He said that all appellants have standing to appeal based on their participation in the development of the Ship Harbor Interpretive Preserve (SHIP) adjacent to the Leeward project; as conditioned and appealed by the applicant the project will damage the SHIP project. Mr. Robert Carmichael, attorney for Leeward, addressed both the comments and applicant's appeal. In that regard, Mr. Carmichael offered that the Planning Commission recommendation for approval is testimony itself to some of the comments made by the other appellants. Project features include 1,363 linear feet of shoreline to be made available for public enjoyment along Guemes Channel; dedication of wetland and wetland buffer of approximately 3 acres including valuable wildlife habitat; development of public parking and restrooms at Leeward's expense providing public accessibility; and contribution to improvements at Edwards Way intersection. Mr. Carmichael said that a Tree Mitigation Plan is in place and strictly follows the City's code, but he then spoke against the imposition of special obligations that wouldn't be placed on any other development. The landscaping plan identifies native species planted in and around the area; also, Leeward has made special commitments to reduce view impact. Mr. Carmichael then used overhead displays to highlight the site plan; he then addressed some of the proposed conditions. He sought clarification for condition # 31 to include language that would identify 2127 September 24, 2007 - Continued height markers. Leeward would like to have the ability to adapt to adverse site conditions; condition # 31 should be deleted; condition # 33 - not best location for the bike pedestrian path — there are safety issues and there's no legal basis for requiring same; condition # 32 - Council will review configuration; condition # 18 — no longer a reason to locate the 15 spaces in Lot 3; condition # 26 — the width, and function of the utility easement should be identified; just compensation for the easement should be addressed; Condition # 7 clearing and grading — the applicant requests some flexibility as to when the dedication of the wetland occurs; he discussed the tree plantings and said the applicant will work to ensure that wildlife thrives in the buffer. The cul-de-sac will provide good access. Mr. Petrish suggested eliminating the hotel, and in exchange, require Leeward to follow all of the environmental proposals necessary. Mr. Hoboy suggested that the project is not compatible and the density and impact of the development is not in keeping with the neighborhood. Mrs. Richardson, while sensitive to surrounding developments, suggested that the Council's primary focus should be what is appropriate for the CM zone; higher residential density is in keeping with the intent of the CM zone. Mrs. Pickett reviewed the significant environmental amenities to be gained from this project; she offered that none of the data presented indicates adverse impacts from having the trail in the buffer; she expressed concerns about the sequence of deeding/dedications; and she would be open to discuss the 50' hotel height. Mr. Geer suggested the trail in the buffer would be more compatible with enjoyment and use of pedestrians. Mr. Turner supported the hotel use; supported the 50' request, supported the trail in the buffer; and suggested that the hotel be built concurrently with or before construction of the condos. He emphasized that the west end needs a hotel. Mr. Adams said that rather than being influenced by adjacent developments, the Council reviews each conditional use application on its own merits. The project is following the tree ordinance established by Council. While he wasn't at odds with the 50' hotel height, the Planning Commission approved the 35' height through the Shoreline Permit process. He expressed concern about the trail location. On a question from Mr. Adams, Mr. Munce clarified that the City would be required to secure a conditional use for a wetland buffer encroachment and mitigate for any impacts. Mrs. Richardson asked about exhibit 19 referred to by Mr. Barnes; this is an agreement that was part of the original permits on the Ship Harbor area. Mr. Munce explained that the Council is reviewing a brand new application with new conditions; the background documents from the previous project are useful as reference; however, those permits were not used. Mrs. Richardson agreed that all of the easements should be clarified and dedications made before any permits are granted; she suggested that Council further review all the conditions on October 1, 2007. Mr. Hoboy emphasized that the project should provide sufficient retail to have met the objective of the zoning code. Mr. Petrish restated his doubts that a hotel will be constructed; he asked Mr. Carmichael asked if there was a potential developer for the hotel; Mr. Carmichael replied that although discussions have been held, he was not aware of a specific agreement. With that, Mrs. Richardson moved, seconded by Mr. Adams, to deliberate and review the Leeward conditions on October 1, 2007. Mr. Petrish asked for clarification on the recommended and proposed conditions; Mr. Hoboy suggested that Councilmembers submit comments directly to the Planning Director in the interim. Vote: Ayes — Hoboy, Petrish, Picket, Adams, Turner, Richardson, and Geer. Motion carried. Port Marina Master Plan Review Mr. Bob Hyde, Port Director, provided the Mayor and Council with an update on the Port Marina Master Plan. Mr. Hyde explained that the Port is wrapping up an 8 -month development and review process; Councilmembers Richardson, Turner, Hoboy, and Pickett and over 100 community members participated in the planning process. Planning priorities were to engage the community and to foster the goal of creating a clear vision maximizing the in -water area. Further, the Port sought to balance services, amenities, and job creation on the uplands. The proposal encourages walking traffic to the downtown; and the Plan strengthens the physical and visual connection between downtown and the waterfront. Over 20 meetings were conducted and 5 field trips were held to review best management practices used by different marinas. Through this review process it was acknowledged that Cap Sante Boat Haven is already a remarkable marina. Key features include: Anacortes is the center of marine related industry and the hub of boat building in the northwest 4 -county region with a viable fishing fleet, island transport, whale watching, and active uplands with a variety of tenants. The Plan is on the website or the public can pick up copies at the Port office. Mr. Hyde explained that there will not be provisions for a convention center, hotel, or condos in this Plan. Using an overhead display, Mr. Hyde highlighted the significant features of the marina development proposal. He drew attention to a small boat center; 3 new buildings on the north end with sufficient parking; pedestrian corridors; view corridors; an open public marina; boat storage/repair area; new breakwater; transient moorage; access for fishing; dock for seaplanes; and a marine skills center at Parcel 1. The Plan comment period will be closed October 4th' the Plan will then go to Port Commission for review and potential endorsement on October 18th. As this was the first opportunity for the Mayor and Council to review the plan, the Mayor encouraged the Port to provide the opportunity for further City Council and staff review. Mrs. Richardson appreciated the Port's willingness to consider all the needs of the maritime community but supported the request for additional review time. Mr. Hyde said he will take that request back to the Commission; he also reported that the next meeting to review the Guemes Channel properties will be October P at 5:00 and October 8th at 5:00 in the Port Commission meeting room. Mr. Hoboy hoped to involve the entire community in the decision making process relative to marine development and to mesh the Plan with the City's overall plans and objectives. Mr. Geer and Mrs. Pickett thanked the Port for taking steps to involve public in the Plan development. 2128 September 24, 2007 - Continued Draft Shoreline Master Plan Review Mr. Ian Munce, Planning Director, said that the Shoreline Master Plan will be brought back to Council on October 1 for decision; this is the 6th draft in a 2 -year review process. The next step will be to send the Draft to DOE for formal review; the City cannot adopt the Plan without Department of Ecology approval. SEPA review and finalization will follow DOE findings. The record has been closed except for the shoreline buffer area issue; in response to the matter of treated wood, the City will continue to allow treated wood in some situations. Also, DOE regulations state that no buffer is required for water dependent use. Thanks to new scanning technology the entire record will be included on the City's website. Discussion followed regarding specific policy positions of the State Department of Fish and Wildlife. There being no further business, at approximately 9:40 p.m. the Mayor adjourned the continued meeting of September 17, 2007. SteveHoglund, City Clerk -Treasurer H. Dean Maxwell, ayor n . Councilmember City Council Minutes — October 1, 2007 At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of October 1, 2007 to order. Roll call found present: Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson, and Brian Geer. Absent: Loren Hoboy. Roll call was followed by the Pledge of Allegiance. Minutes of Previous Meetinq Mr. Petrish moved, seconded by Mr. Turner, to approve the minutes of August 20, 2007 as if read. Vote Ayes — Pickett, Adams, Turner, Richardson, Geer, and Petrish. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Mavor/Council Communications Mr. Geer reported that the final total for the Relay for Life fundraising activity is $161,000. He also expressed appreciation for community support of Improv Night at the High School; the event was a fundraiser for the High School cheerleading squad. Findings of Fact and Conclusions of Law for the Morand Short Plat, Mr. Ian Munce, Planning Director, explained that Council previously voted to direct staff to prepare updated "Council -approved Findings of Fact and Conclusions of Law" for the Morand 4 -lot Short Plat. Additional exhibits were called out in the Findings and references were made to the Comp Plan Conservation and Natural Hazard Reduction goals and policies; Mr. Munce then reviewed the revised conditions reflecting Council action. Mr. Petrish talked about condition # 34; he recommended that the Engineering, Geotechnical and Hydrological review be conducted now in order to protect Anaco Beach Road; Mr. Munce explained that the monitoring will be done by third party review on all key project features before construction begins. Further, regarding stabilization, the City will issue an action notice to the owner stating that corrective work needs to be done on the slope now. Mr. Petrish also expressed concern regarding water coming out of the bank; the applicant has maintained that adding drainage improvements will provide stabilization. Details on stabilization of the toe of the bank are complete and have been reviewed by the City and State agencies. Mr. Geer discussed the City's responsibility to protect Anaco Beach Road. Mr. Turner said that the proposed conditions are in place to oversee the project development; Mr. Morand has the opportunity to correct environmental concerns while developing his property. Mrs. Richardson proposed additional changes: Condition 33: add: and all homes shall be accessed directly from Anaco Beach Road; Condition # 34; add: throughout site stabilization; Condition # 35 add: and Condition 36 has been complied with. It was agreed that, at least 10 days before final short plat approval, the Subdivision Administrator will consult with the Council regarding project compliance. With that, Mr. Turner moved, seconded by Mr. Geer, to approve the Morand 4 -lot Short Plat and to adopt the Findings of Fact and Conclusions of Law with the corrections recommended by Mrs. Richardson. Vote: Ayes — Adams, Turner, Richardson, Geer, Petrish, and Pickett. Motion carried. Consent agenda Mr. Richardson moved, seconded by Mr. Petrish, to approve the following Consent Agenda items. Vote: Ayes — Turner, Richardson, Geer, Petrish, Pickett, and Adams. Motion carried. 2129 October 1, 2007 - Continued 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 September 20, 2007 and September 27, 2007 are approved for payment as of this date October 1, 2007. Claims Warrants Sept, 2007: Warrant Numbers 43068 through 43234 in the total amount of $4,643,897.04 EFT Sept, 2007: Warrant Numbers 43065 and 43066 in the amount of $56.00 Pavroll # 1 for September 21, 2007 in the total amount of $507,235.75 Warrant Numbers 31353 through 31426 in the total amount of $68,292.28 Direct Deposit Numbers 23692 through 23853 in the total amount of $270,005.73 EFT Numbers 756 through 761 in the total amount of $168,937.74 In the same motion Council: Approved the Anacortes High School Homecoming Parade Street Fair Application for October 12, 2007 from 3:00 p.m. to 4:00 p.m.; Accepted the Cap Sante South Pile Removal project (06 -060 -IDS -001) as completed thereby initiating the mandatory 30 -day lien period; Adopted Resolution No. 1744 setting November 5, 2007 as the Public Hearing date on a petition to vacate a portion of 5t" Street in the First Plat of Ship Harbor, and Resolution No. 1755 setting November 5, 2007 as the Public Hearing date on a petition to vacate a portion of Park Avenue in the Woods Addition; and Adopted Ordinance No. 2770 entitled "An Ordinance Extending the Franchise for Curb -side Yard Waste Collection within the City Limits". Interlocal Agreement with Skaqit Countv for Library Services Mayor Maxwell introduced the Interlocal Cooperative Agreement with Skagit County for Library Services for Council review and approval; the funding will assist in providing library services to the citizens of unincorporated Skagit County. Mrs. Richardson pointed out that, over time, the funding level has been reduced. After discussion, Mr. Geer moved, seconded by Mr. Adams, to authorize the Mayor to enter into an Interlocal Cooperative Agreement with Skagit County for library services in the amount of $16,456. Vote: Ayes — Richardson, Geer, Petrish, Pickett, Adams, and Turner. Motion carried. Woods at Sunset Cove PUD Final Plat Mr. Don Measamer, Assistant Planning Director, used an overhead display to highlight the key features of the Woods at Sunset Cove PUD located on Pacific Avenue just east of Washington Blvd. The PUD includes 26 lots; Lot 26 is dedicated to the City as open space, wetland, and wetland buffer totaling approximately 7.5 acres. A trail, funded by the applicant, will be developed and designed by the Park Department. The Planning Commission reviewed the Final Plat and recommended approval. All infrastructure is complete; a standard maintenance bond will be required. On a question from Mr. Turner, Mr. Fred Buckenmeyer, Public Works Director, described the project drainage system. With that, Mr. Adams moved, seconded by Mrs. Pickett, to approve the Woods at Sunset Cove PUD Final Plat subject to a maintenance bond. Vote: Ayes — Geer, Petrish, Picket, Adams, Turner, and Richardson. Motion carried. Closed Record Meetinq: conditional Use applications — Barton — LM 1 Zone — Mayor Maxwell initiated the Closed Record Meeting for two Conditional Use Applications submitted by Mr. Randall Barton to develop single family homes in the LM 1 Zone. The properties are located on Fidalgo Bay Road. Mr. Don Measamer, Assistant Planning Director, used an overhead display to show the footprint for the 2 single family homes proposed by Mr. Barton. By way of background, Mr. Measamer referenced the Vesser and Roestel Conditional Use Permits issued by the City for single family homes at this general location. A site visit was held; the applicant submitted contour drawings highlighting building location, setbacks, and the Ordinary High Water Mark. The Planning Commission held Public Hearings on both applications and recommended approval subject to conditions; no appeals were filed. During discussion parking was addressed; the Building and Engineering Departments will review parking designs during the standard review process. Mrs. Pickett referenced the R-2 standards; Mr. Measamer responded that the applicant not yet shown a site plan corresponding to the proposed conditions. Mrs. Richardson pointed out that the applicant would have an opportunity to seek a Variance from Board of Adjustment for a specific design. Mr. Petrish stressed that this terrain poses a challenge to development. Mr. Geer referenced the applicant's assertion that imposition of the R2 zoning restrictions would constitute a takings. Mr. Ian Munce, Planning Director, replied that the applications, if approved, will be vested under the existing statues; the applicant will then have the option to apply to the Board of Adjustment for modifications to the existing R2 setback requirements. This scenario would defeat any takings claim and the Council will have discharged its responsibility. However, the upcoming proposed shoreline master program revisions will provide for larger setbacks; under these new standards the 2130 October 1, 2007 - Continued Barton sites would be unbuildable. With that, Mr. Geer moved, seconded by Mrs. Pickett, to approve the Barton Conditional Use applications for single family homes in the LM 1 Zone and to adopt the Findings of Fact and Conclusions of Law. Vote: Ayes - Petrish, Pickett, Adams, Turner, Richardson, and Geer. Motion carried. Deliberation/Decision: Leeward Conditional Use Permit Mr. Ian Munce, Planning Director, explained that the Planning Commission issued a Shoreline Permit for the Leeward Project located on the shoreline at the base of Edwards Way on the Guemes Channel. The project includes 40 condo units on the upper slope and a proposed 20 -unit hotel. The applicant proposed a 50' height for the hotel; the Planning Commission, concerned for setting a precedent on shoreline construction, limited the hotel height to 35' through the Shoreline Permit process. A new design for the cul-de-sac was presented moving it back from the shoreline; this staff -approved design would free up the area along the shoreline for the Guemes Channel Trail. The Council's information packet also contains proposed amendments from both Mrs. Richardson and Mr. Hoboy. A key issue is that the wetland and wetland buffer shall be transferred to the City before any clearing begins. The record shows that most of the trees of significance are in the buffer area that will be protected; the osprey nest is located in the buffer and will be protected by a 60' setback. Mrs. Richardson initiated the deliberation. She discussed the historical significance of the condition requiring the wetland transfer to the City. Mr. Petrish asked if the applicant will pursue the hotel construction with the 35' height restriction. Mr. Geer pointed out that a 12 -unit hotel would not be viable; the applicant said they will move ahead with the condo development. Mrs. Pickett pointed out that development of any permitted uses in the CM zone would preclude the opportunity to negotiate for amenities; the public benefits of the trail and connector would then be lost. Mr. Adams pointed out that the Planning Commission held a remand hearing to address issues of height of the hotel, trail, and the condo configuration. The applicant prefers the two building option; the Planning Commission recommended approval of the one building option. Mr. Turner spoke in favor of the 50' height and that a hotel is needed in the west end of town; otherwise, the Council has the option of denying the project outright if this should become a condo -only development. Mr. Petrish pointed out that the current cul-de- sac layout is in conflict with the trail; the applicant suggested moving the cul-de-sac up the hill thereby freeing up additional public access benefits. Discussion followed regard the protection of trees and methods of measuring building height. Mr. Munce then reviewed the proposed condition amendments: (1) ...alternative Site Plan Maps S1A a S4=B=, (10) add: All such releases and/or easements shall be completed and recorded with Skagit County prior to beginning any clearing or construction activities.; (13) shall be secured prior to any clearing or construction activities beginning; (15) add: ...future plans to relocate the portions of the pump station... must be completed prior to issuance of any occupancy permits. (16) add: The relocated improvements must be completed prior to issuance of any occupancy permits. (18) delete: . (21) language clarification regarding reference to trail/fire lane location; (28) add: ...a Utility Easement shall be signed and recorded for storm water recharge..." ; (30) language regarding shielding glare to the wetlands, wetland buffer, shorelines, and residences; (31) delete: feet; 113wildingA3 83 r feet, and—Build-intg1_144 75 .; (32); delete: ... a-s_=sJ;e_wn=arnExhb�t A -t -o E-hhibit %t__-bi+ ct�€_blished by the Gity ; (33) bike/pedestrian path easement. to the extent that the final trail design includes a route through the development, (34) add: Where the fire lane is along the shoreline, the public trail shall be on the fire lane. 35: Add: An easement for the sewer line running from the pump station eastward shall be signed and recorded prior to beginning any construction or clearing. Add conditions 36-42: 36. The six large evergreen trees near the northwest corner of Building A condominium shall be retained and protected. A professional arborist shall specify how these trees need to be protected and construction methods shall be modified if necessary to protect these trees. 37. The hotel fire lane shall extend no closer to the shoreline than as shown on Site Plan SAA dated July 18, 2007. The shoreline interpretive trail and the fire lane shall occupy the same area and shall not be separate structures. The fire lane paralleling the shoreline shall be a permeable surface. The area between the fire lane and the shoreline shall be reserved as a NGPE vegetated shoreline buffer, including beach shading vegetation. The existing shoreline buffer vegetation shall be retained where possible and enhanced as appropriate to restore natural shoreline vegetation. 38. The Guemes Channel non -motorized trail may utilize public right-of-ways within the project including the public access fire lane/driveways between buildings. The trail may encroach on the wetland buffer to the extent agreed upon by the City in approving the final trail design. The trail shall use the existing dirt road within the buffer to the extent possible and buffer impacts shall be mitigated. There shall be no other pathway into the wetland buffer. 39. The wetland buffer and the trees to be preserved shall be delineated by construction fencing prior to commencement of any site grading or construction work and the buffer shall be protected from impacts of grading and construction activities. 40. The hotel shall not be converted to a private residential facility unless Shoreline and Conditional Use Permits are secured for that use and all pubic amenities are preserved. 41. The City Tree Preservation Ordinance shall be strictly adhered to as supplemented by Leeward's Tree Preservation Guidelines. 42. The cul-de-sac shall be located as shown on Exhibit 86 with the addition of two handicapped parking spaces located on the north end of the cul-de-sac. After discussion, Mrs. Richardson moved, seconded by Mrs. Pickett to approve the Leeward Conditional Use Permit subject to the conditions as reviewed and amended. Vote: Ayes - Pickett, Adams, Turner, Richardson, Geer, and Petrish. Motion carried. 2131 October 1, 2007 - Continued Final Modifications to Shoreline Master Proqram (SMP) Draft (prior to DOE for their review and comment) Mr. Ian Munce, Planning Director, presented the SMP Draft incorporating and responding to comments received on the shoreline buffer issue. If approved, the Draft will be forwarded to the Department of Ecology to be followed with SEPA Review and one more round of written comments on any changes proposed. Mr. Munce noted that the DOE will not be expecting buffers for water dependent uses. The City wants to see the shoreline used for water dependent endeavors; for non -water dependent uses there will be significant buffer requirements. In that regard, there will be a public review process to discuss relocating buffers in the most appropriate place. Mr. Munce thanked the Council, Mrs. Richardson, and citizens for helping craft the Draft language. Mr. Petrish inquired about any DOE references to the effect of global warming to the shoreline; Mr. Munce said that research studies are underway and a number of jurisdictions are factoring in climate changes into their ordinances. Mr. Munce then reviewed the approval process timeline. Ms. Carol Yates, Legal Department, will have all documents and exhibits scanned and available on the City's website within the week. With that, Mr. Turner moved, seconded by Mr. Petrish, to forward the Shoreline Master Program Draft to the Department of Ecology for review and comment. Vote: Ayes - Adams, Turner, Richardson, Geer, Petrish, and Pickett. Motion carried. Update: Airport Noise Berm Mr. Don Measamer, Assistant Planning Director, explained that the Port of Anacortes submitted an application for a grade and fill permit for the installation of the berm at the Anacortes Airport. In reviewing those documents, Mr. Measamer raised concerns regarding the design of the berm relative to the engineering specifications of Section 24.2 of the Development Agreement. Mr. Bob Hyde, Port Director, explained two facilities will be constructed; (1) A screening berm at the south end of the runway to block noise and light from Bryce Court, and (2) an alternative run-up and wash down area. The berm will be 250' long using 6,500 cubic feet of material; the base will be 100' wide and between 8 and 15' high with a 25' wide bench at the top. Mr. Hyde said that the Port has sound metering equipment at the airport and will conduct baseline testing and monitoring after the berm is installed. The Mayor said that engineering would be required to determine whether or not the berm would reflect sound to the other side of the airport; the Port of Anacortes airport consultants will not certify that the berm will block noise as it is located too far from the runway. Mrs. Richardson said that the intent is to make sure that the berm didn't bounce noise to other neighbors. Mr. Turner clarified that the discovery of the wetland area after the Agreement was in place is the reason for moving the berm up the hill. He suggested pursing the wetland mitigation process should the proposed berm location prove to be ineffective. Mrs. Richardson suggested taking noise readings from the yards of the affected neighbors. Mr. Ian Munce, Planning Director clarified that this discussion is being held in the interest of full disclosure and Agreement language clarification. Further, the City is not accepting the current berm configuration as meeting the Agreement specifications; if it the berm does not meet the specifications, the Port will do additional work to meet this condition — perhaps moving the berm closer to the wetland buffer or with wetland mitigation if necessary. The Mayor thanked the Port for attending the meeting. There being no further business, at approximately 9:30 p.m. the Mayor adjourned the regularly scheduled meeting of October 1, 2007. 14,0 -4� 6Q., Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell, Mayor A" 74A" a� c,� �. Cound2 er 2132 October 15, 2007 At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of October 15, 2007 to order. Roll call found present: Loren Hoboy, 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 Meetinq Mr. Turner moved, seconded by Mr. Geer, to approve the minutes of the continued meeting of August 20, 2007 (September 4th, September 10th, and September 13th) as if read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and Hoboy. Motion carried. Citizen Hearinas No citizens present wished to testify on matters not on the agenda. Mavor/Council Communications Mr. Gary Robinson, Park and Recreation Director, introduced Mr. Carl Wedlund for special recognition from the Mayor and City Council. Mr. Robinson explained that the successful program for waste containers in the downtown area was due, in part, to the use of Mr. Wedlund's extensive and historical collection of vintage labels from local fish packing plants. The colorful labels were copied and placed on the waste containers; his collection will eventually be turned over to the Museum. The Mayor then presented Mr. Wedlund with a commemorative gift in appreciation for his contribution. In answer to a question from Mr. Petrish, Mr. Ian Munce, Planning Director, explained that the City Council denied a conditional use application from T -Mobile to locate a cell tower next to the Methodist Church on 22"d and "H" Avenue. T -Mobile has appealed that decision to the U.S. District Court in Seattle challenging both the validity of the City's cell tower ordinance as well as how that ordinance was applied in this situation. Mr. Petrish reviewed the purpose and goal sections of Chapter 17.63.010 of the Municipal Code, Wireless Communications Towers and Antennas. Discussion followed regarding the telecommunication industry's use of federal statues to circumvent and preempt local ordinances and planning decisions regulating the installation of cell towers and related equipment. Mrs. Richardson reported on the recent successful Friends of the Forest fundraiser; monies raised will be used for maintaining the forestlands and to provide funding for educational programs. Consent agenda Mr. Hoboy moved, seconded by Mr. Petrish, to approve the following Consent Agenda item. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, Hoboy, and Petrish. 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 October 4, 2007 and October 11, 2007 are approved for payment as of this date October 15, 2007. Claims Warrants Oct, 2007: Warrant Numbers 43235 through 43236 in the total amount of $524,535.97 EFT Oct, 2007: Warrant Numbers 43237 through 43460 in the total amount of $112.00 Pavroll # 1 for October 5, 2007 in the total amount of $716,648.30 Warrant Numbers 31428 through 31500 in the total amount of $240,230.82 Direct Deposit Numbers 23854 through 23966 in the total amount of $267,953.85 EFT Numbers 731 through 767 in the total amount of $208,463.63 Warrant Cancellation Claims # 30916 in the total amount of $424.28 Police Department — CTED Justice Assistance Grant: Opportunitv for Public Comment Police Chief King presented a report to the Mayor and City Council on the City's eligibility for a Washington State Department of Community, Trade, and Economic Development grant. The grant comes to the City from the federal government Justice Assistance Grant Program. The Chief explained that the grant, in the amount of $7,198.00, may be used for law enforcement and is earmarked for the purchase of tasers. Public comments on this grant proposal are welcome through October 22nd and should be directed to the Anacortes Police Department. Resolution: Tourism Promotion Proaram, 2008 Mayor Maxwell presented a Resolution to Council for review and adoption. The Mayor explained that fourteen agencies have been selected by the City through a competitive selection process to undertake projects designed to advertise, publicize, or distribute information or undertake other activities for the purpose of attracting visitors to the City of Anacortes. If adopted, the Resolution would authorize the Mayor to enter into a contract with the agencies for the provision of these services. Mrs. Richardson remarked on the wide variety of community events that benefit from the Tourism Promotion fund. Discussion followed regarding the grant match criterion; it was also pointed out that the funding monies have been collected as part of the Motel/Hotel Tax. After discussion, Mr. Turner moved, seconded by Mr. Hoboy, to adopt Resolution No.1746 entitled "A Resolution Authorizing Execution of Tourism Promotion Fund Contracts by and between the City of Anacortes and Fourteen Agencies for Seventeen Projects". Vote: Ayes —Adams, Turner, Richardson, Geer, Hoboy, Petrish, and Pickett. Motion carried. 2133 October 15, 2007 - CONTINUED Public Hearinq: Latecomer Aqreement — The Woods at Sunset Cove, Mayor Maxwell opened the Public Hearing to take comments on a Latecomer Agreement for the Woods at Sunset Cove Planned Unit Development. Mr. Fred Buckenmeyer, Public Works Director, explained that the Woods, a 26 lot development on 13.44 acres, has contributed 7.46 acres of open space including 3.08 acres of wetland. A Latecomer Agreement would allow the Woods developer, Chaffey Homes, to recoup some costs associated with improvements benefiting non -participating parties. In this case, full street improvements and utilities were constructed on the south side of Pacific Avenue; the affected property owners will be assessed $13,879.65 (for a total assessment of $124,916.81). The property owners were notified of this public hearing and invited to participate. Mrs. Marilyn Firlotte, 5912 Sunset Avenue, owner of Lot # 3 in Section 9 of this project, said that while the improvements enhance their lot, there have been concerns as well. She said the location of the electric box on the corner of their property limits access to their lot. Also, during installation of the box, the roots of an adjacent fir tree were cut; because of that, the tree could be compromised during future windstorms. Mrs. Firlotte asked that the payment waiver for utility hookups be extended from 2 years to 5 or 6 years. There were no further comments and the Mayor closed the Public Hearing. In response to Mrs. Firlotte's comments, Mr. Buckenmeyer said that the Public Works Department will contact PSE to discuss the Firlotte property access; he also clarified that the Firlottes will not be under any obligation to pay the Latecomer's Fee until they are ready to develop the property. After discussion, Mr. Turner moved, seconded by Mrs. Pickett, to accept the Woods at Sunset cove Latecomer Agreement. Vote: Ayes — Turner, Richardson, Geer, Hoboy, Petrish, Pickett, and Adams. Motion carried. Council Approval — (1) Request for Manufactured Home as Care Giver Residence — John Bettvs,, 9434 Padilla heiqhts Road (2) Request for Park Model Manufactured Home as Careqiver Residence, — Ron and Marilvn Harqett, 8991 Stevenson Mr. Ian Munce, Planning Director, presented two requests for permission to locate temporary caregiver residences; City codes provide an option for a family to bring in a temporary mobile home to provide short term care for elderly or disabled family members. When that care is not longer needed the temporary residence will be removed. Applicants for the Padilla Heights Road and Steven Road residences were present and available to answer questions. The personal details of the requests were forwarded to Council prior to this evening's meeting. With that, Mrs. Richardson moved, seconded by Mr. Adams, to approve the request for a Manufactured Home as care giver residence at 9434 Padilla Heights Road, and for a Park Model Manufactured Home as care giver residence at 8991 Stevenson Road; when the short term care is no longer needed the temporary residences will be removed. Mr. Munce clarified that the Building Department will work with the property owners to assure that basic life safety and sanitation issues are addressed. Vote: Ayes — Richardson, Geer, Hoboy, Petrish, Pickett, Adams, and Turner. Motion carried. Sharpes Corner Short Plat (City): Review and Update Mayor Maxwell explained that the property included in the 9 -lot short plat at Sharps Corner was donated to the City by the Willette family to be used for any purpose benefiting the City of Anacortes. In that regard, the Mayor mentioned the community's direction to the City to provide jobs. Mr. Ian Munce, Planning Director, pointed out that this piece of property is one portion of a larger parcel donated by the Willette family - 20 acres have already been allocated to the City forestlands. Mr. Munce reported on the following issues: the City and Department of Transportation have discussed access to this property from Highway 20; the property is zoned light manufacturing; the City has addressed septic issues/easements; and development of the Old Brook Lane access. Neighbors within 300 feet were notified of this short plat action; no comments or appeals were received. With regard to use, the local marine trades have discussed using this property as an expansion area. In that event, the City could submit grant applications to the Distressed Counties fund and other economic development monies for improvements to the property. Staff is also investigating relocating a high pressure gas line that runs through two of the lots. Mrs. Richardson discussed whether or not to resubmit the short plat drawing with larger lots and new road configuration; Mr. Munce recommended moving forward with vesting this project so the City has memorialized rights to access to Highway 20 and has secured the right to develop smaller parcels. Once the short plat is recorded, boundary line adjustments can be made to meet any future development proposals. After discussion, Mr. Geer moved, seconded by Mrs. Pickett, to move forward with the 9 -lot short plat (# ANA 06-011); this approval includes road access (meeting City standards) to Highway 20. Mrs. Richardson emphasized the need for a well -thought out development plan for this property. Vote: Ayes — Geer, Hoboy, Perish, Pickett, Adams, Turner, and Richardson. Motion carried. There being no further business, at approximately 9:00 p.m. the Mayor adjourned the regularly scheduled meeting 7EP err> 15, 2007. //_ -74- 4., Y�1,� Steven D. Hoglund, City Clerk -Tres er H. Dean Maxwell, Mayor / n �af�Vel� �Coumber 2134 November 5, 2007 At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of November 5, 2007 to order. Roll call found present: Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, Cynthia Richardson, and Brian Geer. Roll call was followed by the Pledge of Allegiance. Minutes of September 17, 2007 Mr. Petrish moved, seconded by Mr. Geer, to approve the minutes of September 17, 2007 as if read. Vote: Ayes — Geer, Richardson, Petrish, Pickett, Adams, and Turner. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Mavor/Council Communication Mavor's Award of Merit Mayor Maxwell announced that Ms. Tori Wyman has been nominated by her supervisor, and selected by the Mayor, to receive the Mayor's Award of Merit; this recognition is based on her outstanding and diligent performance in the Finance Department. Acting as the Interim Finance Director, Ms. Wyman managed the 2008 budget process, served as the primary contact for the annual State audit, and assisted the new Finance Director when he joined the Department. The Mayor and Council thanked Ms. Wyman for her hard work and commitment to the City of Anacortes; she received a gift certificate to celebrate this recognition. Update: Burlinaton Crisis Center: David Asia. Skaait Countv Human Services Mr. David Asia, Skagit County Human Resources, thanked the Mayor, Council, and Police Chief King for their support of the Burlington Crisis Center. This integrated crisis center successfully opened in April; Mr. Asia reported on the use of the facility over the first six months of operation. With regard to the 2007 detoxification bed days, the percentage of utilization has significantly increased indicating successful use of the facility; although the mental health respite bed days did not increase, Mr. Asia suggested that additional promotion from the mental health community could change that trend. Prior to construction there were concerns about the facility's impact on the neighborhood; Mr. Asia recently met with the neighbors and no problems were presented. Mr. Asia also reported that the Center will be continuing the successful working relationship with Island Hospital. The Mayor and Council thanked Mr. Asia for his presentation. Appointment: Anacortes Arts Commission Mayor Maxwell announced the appointment of Mr. Bill Berry to the Anacortes Arts Commission. In that regard, on October 10, 2007 the Commission voted to recommend that Mr. Berry be added as a Commission member. ConsentAgenda Mr. Petrish moved, seconded by Mr. Adams, to approve the following Consent Agenda items. Vote: Ayes — Adams, Turner, Richardson, Geer, Petrish, 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 October 18, 2007 and November 1, 2007 are approved for payment as of this date November 5, 2007. Claims Warrants Oct, 2007: Warrant Numbers 43463 through 43723 in the total amount of $3,333,120.46 EFT Oct, 2007: Warrant Numbers 43461 through 43462 in the total amount of $232.00 Pavroll # 1 for October 19 2007 in the total amount of $493.701.92 Warrant Numbers 31501 through 31557 in the total amount of $54,413.41 Direct Deposit Numbers 24035 through 24197 in the total amount of $272,731.73 EFT Numbers 768 through 775 in the total amount of $166,556.78 Warrant Cancellation Claims # 30066 in the total amount of $392.49 Claims # 29895 in the total amount of $141.00 In the same motion Council: Approved the Special Event Request for the use of Causland Memorial Park for a Veterans Day program on Sunday, November 11th, (Mayor Maxwell added that the Library and Museum are offering a Veteran's Day program at 1:00 p.m. at the Library Conference Room.); and Approved the Street Fair Application for the Christmas Tree Lighting ceremony at the Chamber of Commerce parking lot on December 7, 2007 from 6:00 p.m. to 7:00 p.m. Public Hearinqs (2) — Street Vacation Petitions — Chaffev Homes/Portion of 5th Street and Park Avenue Mayor Maxwell announced that the street/alley vacation hearings have been continued to November 19, 2007. 2135 NOVEMBER 5, 2007 - CONTINUED Public Hearinq: 2008 Budqet Mayor Maxwell opened the Public Hearing to take public comment on the 2008 Budget. Mr. Steve Hoglund, Finance Director, reported that the Mayor delivered the 2008 Budget message on September 10, 2007; copies of the Budgets were handed out to Council at that meeting and were subsequently available for the public to view at City Hall and the Library. Approximately $110,000 in additional expenditures has been incorporated into the Final Draft now before Council: (1) $17,000 - additional costs for Fire Station # 3; (2) $76,000 - additional medical/dental costs; and (3) $16,000 — additional salary costs. Further, the City is presenting a balanced budget that includes a 1 % increase in the property tax levy (representing $37,983 in additional property tax levy). This figure does not include new construction — estimated to generate an additional $139,000 in additional property tax revenues for total estimated property tax levy proposal of $3,976,053. Mr. Hoglund then presented a chart representing assessed values in Anacortes. He used a line chart illustrating the inverse relationship between the property tax levy and the property tax rate — a result of ever increasing assessed values. As assessments increase, a smaller levy rate is required to generate the same amount of revenue. The $37,900 will be assessed on the 2.75 billion dollar assessed valuation. Mr. Hoglund also described the distribution of Anacortes tax dollars and how that breakout compares to other taxing districts. Mr. Hoglund said that the final steps will occur in two weeks when the Council will act on both an Ordinance adopting the 2008 Budget and on a Resolution approving the proposed property tax levy. Mr. Terry Brady, 1908 29th Place, asked for web site access to the budget. The Mayor explained that the final budget will be placed on the web site but that draft copies have been available for public study throughout the Budget process. Closed Record Meetinq: Fidalqo Villas Preliminary Plat and Conditional Use Planninq Commission Recommendation and Appeals (20 Mayor Maxwell initiated the Closed Record Meeting for the Fidalgo Villas Preliminary Plat and Conditional Use permits. Mr. Don Measamer, Assistant Planning Director, explained that the Fidalgo Villas project is located in the Commercial Marine Zone near Cabana Way and Skyline Way. This project's key features include: 19 single family lots with a minimum lot size of 7,500 square feet; public access to be provided from the Cabana Lane cul-de-sac along the entire tidelands to Lot 1; and setbacks at the Ordinary High Water Mark (OHWM). Mr. Measamer explained that Skyline Way, at approximately Flounder Bay Lane, becomes a private road; with regard to Skyline Way improvements, the applicant proposes road improvements fronting the project site only. Also, the Planning Commission reviewed and approved the Fidalgo Villas Shoreline Permit for the shoreline stabilization portion of this project subject to conditions regarding road improvements and stormwater outfall as well as conditions specific to the stabilization project. All of the exhibits, transcripts, and documents from the Planning Commission hearings were forwarded to the Council prior to this evening's meeting. Two appeals of the Planning Commission recommendation have been filed. In conclusion, Mr. Measamer reported that he will be meeting on site with representatives from the Department of Ecology to review the Ordinary High Water Mark demarcation. The first appellant, Mr. Ross O. Barnes, 1004 7th St., spoke on behalf of himself and Evergreen Islands. While agreeing with the project conditions, Mr. Barnes asked for further clarification as to the intent of Condition # 8/public access easements. He first thanked City staff, the Planning Commission, and Planning Director, Mr. Ian Munce, for the development of conditions so that the shoreline restoration and stabilization project, if implemented, could create a demonstration site for future projects. He is, however, asking that Condition # 8 be modified to specifically reference the tidelands as proposed by the applicant shown on the May 11, 2007 site plan. Further, during site development, the shoreward tidelands boundary should be clearly delineated during site development. Mr. Barnes' version of Condition # 8 reads: "Public access easement shall be provided on the tidelands of Lot 1 through 19 as shown on Sheet C-1 of the Fidalgo Villas proposed preliminary plat dated May 11, 2007. These easements shall remain unobstructed by fences or structures. The boundary between the tideland tracts with associated public easement and the adjacent upland lot shall be clearly and permanently marked." Mr. Barnes spoke in support of the following conditions as written: Condition # 26 (location of the crib structure); Condition # 7 (consultation with DOE on the OHWM); and Condition # 25 (building setback). In conclusion, Mr. Barnes recommended adding a condition requiring a program of beach replenishment as the final step in a demonstration quality shoreline restoration project. The second appellant, Mr. John McCollister, 2401 Skyline Way, President of Bayside West Condo Assoc., explained that the Association's appeal focused on who will assume responsibility for the roadway from the Flounder Bay Cafe to the eastern end of the spit. Considerable testimony on this issue was presented at the Hearings, but it is still unclear who is responsible for the roadway maintenance should the project be completed. He suggested that some ambiguity exists on this matter; in that regard, Skyline Division # 19, and Division # 17 may have ownership claims to the road. Mr. McCollister said that once the improvements are installed, the Condo homeowners will be affected by increased traffic, signage, maintenance, safety, lighting, storm drainage and so on; the Condo Association recommended that the City assume responsibility for the right-of-way. Mr. Jim Clark, 4407 Anaco Beach Place, facilitator for West Coast Land Investments spoke on the applicant's behalf. Throughout the hearing process no objections were noted to improving the road to City standards; the applicant believes that Skyline Division 19 owns the road, but that the City would assume responsibility when improvements are completed. Via the appeal, Mr. Clark asked for �� ,r � �� clarification of the conflict between Conditions #22 and # 26. Condition #22 states that the Beach Protection Project shall be subject to a May 2007 report prepared by Anchor Environmental; as described in that report, e good portion of the structure is seaward of the OHVVM. The intent of that design was to accommodate buildup of logs on the beach to provide protection for juvenile fish. If the toe of the crib structure is set back five feet from the QHVVW1 as called out in Condition #2G. benefits from the Anchor Environmental design will be lost. If the recommended conditions are apppoved, the applicant would like assurances that they can redesign the structure to accommodate the new placement. During Council discussion, Mr. Turner emphasized that the cribbing be done correctly and asked if the project could beredesigned. A representative from Anchor Environmental answered in the affirmative; he also said that recommendations from the Department of Fish and Wildlife were incorporated into the original design. The new conditions would radically alter the structure. On a question from Mrs. Richardson, Mr. Meanomerexp|ained that the Planning Commission's intent was to allow more beach area infront ofthe crib wall structure. Mrs. Pickett confirmed that there will beroot wads attached tologs to provide a complex structure for the fish. On a question from Mr. Adams, Mr. yWeasannerexp|ainod that he will meet with Mr. Paul Anderson. D(]E, and the Project Biologist on n site visit tomorrow to confirm and flag the OHVVK8 based on WAC and DOE guidelines. Council decided that site visit will be scheduled over the next two weeks. Mrs. Richardson offered that the site visit iecritical tothe decision nn this project; that decision will have long term implications to the Skyline area. Mr. Petriah asked for additional information on the crib structure function. With that. Mr. Geer nnoved, seconded by [Wna. Pickett, to table this matter in order to conduct a site visit. Vote: Ayes —Turner. Richardson, Gaer, Pedheh.Pickett, and Adams. Motion carried. Pub|icHemrioq StornmnvmterCocnpmebeosivePiam—CJrdinaooe Mayor Maxwell opened the Public Hearing to take comments on the City ofAnacorten Storm Water Comprehensive Plan. Mr. Fred Buckenmeyer, Public Works Director, explained that the discussion of the Comprehensive Plan will ino|ude, in pod' the concept for the Skyline Dredging Project. The first public presentation of this plan was made at the Council's June 25, 2007 Study Session. Prior to that, the community studied this Plan at e number of public meetings; the Plan has also been reviewed extensively by the Council Public Works Committee, the Public Works Citizen Advisory Committee, and City staff. Mr. Buokenmeyerthen recognized the efforts of Engineering Division employees Rob Hoxie and Erik Pipkin. and Operations employees Sandy Anderson and McArthur Jackson; they were instrumental in field data gathering. As part of the inventory of the complete drainage aystem, staff catalogued 120 miles of stunnvvater conveyances including 100 detention facilities and 3.286 catch basins. Given the size of the storm drainage system only 34 locations were earmarked for improvements. Also, the entire drainage system has been computer modeled; of the 60 drainage basins in the City only 12have experienced minor capacity issues. Mr. 8uckennneyer also reported that there are 24 recommended projects outlined in the Capital improvement Plan toimprove the system; some projects are already underway. The ShonnvvoterPlan overview included discussion on NPOE8 compliance and associated cnoL An inonanae in monthly otomnwaterrates was presented: $1.00/nnonth increase in the stornovveharfees in 2808 and an additional $1.00/month in 2009; recommended General Facilities Charge (currently $1.126/iau) to be increased annually based on the engineering news naoond cost of construction index. If the recommendation increases are adopted. an Ordinance reflecting the changes will be brought back to Council eta later date. The rate option for improvements through basin specific fees can be implemented at the same time as Plan approval and adoption. Council also discussed providing incentives for low impact development techniques with regard tocommercial impervious surface charges. Mr. Buokenmeyerthan turned to the Flounder Bay dredging project; he explained that navigation at |ovv tide is difficult and over time minimal maintenance has occurred. Mr. Don Everett and Mr. Don Caldwell have been instrumental in bringing this project forward to City staff and Council. The proposed Stormvvater Plan naoonornends an inonsaaa in atorrnvvatar ud|ih/ fee specific to that basin as a funding mechanism; ie., the affected property owners will be charged through the City's existing billing system. The project will proceed in two Phases; the purpose of Phase / will be to establish an exact cost estimate in order to complete Phase ||. Phase If will include design, permitting, dradAing, and disposal. The preliminary estimate for Phase | is $100.000; those slip owners in this benefit area will be paying an additional flat rote of $4.02 for three years. The Qty will be looking to the slip owners to determine the Phase || cost agreement. The Mayor then opened the Hearing for public comment. Ms. Drusi||a Br/ggs, 4412 Bryce Drive, asked for rationale on impervious surface charges; asked to consider an LID for the slip owners; suggested that the dredging will be a citywide improvement; suggested that the airport be charged an impact fee for airport impervious surface and associated runoff. Mr. Buckonnneyarvvi|\ be contacting Ms. Briggs to further discuss these issues. There were nofurther comments; the Mayor thanked Ms. Briggs for her comments and declared the Public Hearing closed. The Mayor pointed out that it will be a significant undertaking to develop a billing program for the 691 slip owners; the Council will review the material presented, and the appropriate Ordinances will be brought back to the Council for review and adoption. SamnisbTribe—OnResmrvatiuoDesiowatimn Ma. Leslie Eeohwood, 1810 Down Jones, General Manager for the Sannish Indian Nation, explained that the Tribe is requesting o letter ofsupport from the Mayor and City Council for the Nation's request for designation of o defined. limited geographic area within which future Samiah fee -to -trust applications, 2137 NOVEMBER 5, 2007 - CONTINUED pursuant to 25 code of Federal Regulations Part 151, will be treated and processed as "on -reservation" applications. The Tribe has already received letters of support from Senators Cantwell and Murray; Congressman Larsen will support this request provided there are no objections from City Councils. Discussion followed regarding the effects of the 1855 Treaty of Point Elliott; questions followed regarding the on- and off -reservation designations category under Federal regulations; it was also pointed out that the existing MOA between the Tribe and the City not affected by this action. With that, Mr. Turner moved, seconded by Mr. Geer, for the Mayor and Council to support, via letter, the Samish Indian Nation request to establish an On -reservation Geographic Area for processing of fee -to -trust applications under 25 C.F.R. Part 151. Vote: Ayes — Richardson, Geer, Petrish, Pickett, Adams, and Turner. Motion carried. Contract Award to Lakeside Industries — Paving for Pump Station 12 — Cap Sante Mr. Fred Buckenmeyer, Public Works Director, presented a request to Council for authorization to enter into a contract with Lakeside Industries to pave at 5th Street/Cap Sante Area — Pump Station # 12 (Project Number 07-031-TRN-001). Mr. Buckenmeyer explained that the upgrades to Pump Station # 12 is part of the City's overall plan to upgrade its sewer treatment system. The work required extensive street cuts, and paving is required in the vicinity of 5th Street. Low bid was received by Lakeside Industries. With that, Mr. Petrish moved, seconded by Mr. Turner, to award the 5th Street paving project to Lakeside Industries in the amount of $49,535.00. Vote: Ayes — Geer, Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. At approximately 9:40 p.m. Mayor Maxwell continued the meeting to November 19, 2007 at 5:00 p.m. for the purpose of conducting a site visit: Trail Easement — Washington Park Estates. Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell, 1�/layor Council tuber Citv Council Minutes - November 19, 2007. Continued from November 5, 2007 Mr. Jonn Lunsford, Parks and Forestlands Manager, conducted the site visit relative to the Trail Easement issues at Washington Park Estates. Councilmembers and neighbors met at 5:00 p.m. at 2614 Washington Blvd. to view the public access easements. At the conclusion of the site visit the continued meeting of November 5, 2007 was adjourned. November 19, 2007 At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of November 19, 2007 to order. Roll call found present: Nick Petrish, Erica Pickett, Cynthia Richardson, and Brian Geer. Absent: Brad Adams, and Bill Turner. Roll call was followed by the Pledge of Allegiance. Minutes of September 24. 2007 Mr. Petrish moved, seconded by Mr. Geer, to approve the minutes of September 24, 2007 as if read. Vote: Ayes — Pickett, Richardson, Geer, and Petrish. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Trail Easement at Washinqton Park Estates Mr. Jonn Lunsford, Parks and Forestlands Manager, reported that a site visit was held at 5:00 p.m. at 2614 and 2618 Washington Blvd. The purpose of the visit was to observe three of the Washington Park Estates easements. Questions followed from Council regarding location of easements and the ability to provide connections between this neighborhood and future neighborhoods. Mrs. Richardson initiated the Council discussion; in retrospect, she thought that Council should have required the developer to improve the walkways at the time of construction. In this particular case, the practical thing would be to release the easement and require compensation at fair market value. Further, the proceeds could be directed to the Park Fund. Mrs. Pickett asked that the easement remain a wildlife corridor; it could become a walkthrough area for local animals and should not be fenced. Mr. Geer suggested that any revenues be earmarked for the easement to the south. Mr. Petrish agreed the existing easement was too narrow and caused a hardship for the homeowners. With that, Mr. Geer moved, seconded by Mrs. Richardson, to vacate the pedestrian easement between 2614 and 2618 Washington Blvd., to direct staff to prepare a valuation for relinquishment of the easement (for Council approval), that the funds shall be applied to the pedestrian easement to the south, and that no further fencing shall occur on the relinquished easement. Vote: Ayes — Richardson, Geer, Petrish, and Pickett. Motion carried. 2138 November 19, 2007 - CONTINUED Ordinance: Stormwater Comp Plan Adoption and Storm Water Utilitv Fee Mr. Fred Buckenmeyer, Public Works Director, presented an Ordinance to Council to adopt the Stormwater Comprehensive Plan which includes an amendment to the stormwater utility to allow for a basin specific project. A Public Hearing was held on November 5, 2007 and the Council reviewed the following details: system inventory, hydraulic modeling work, capital improvement plan, regulatory requirements including NPDES Phase II, financial review, maintenance, and monitoring. The Plan before Council recommends a $1.00/ month year increase in 2008 to the stormwater utility, an additional $1.00/month increase in 2009, and an increase to the General Facilities Charge. If approved, an Ordinance reflecting these rate increases will be brought back to Council for adoption. The Flounder Bay dredging project will be funded through a basin specific charge of $4.02/month for 36 months. This matter was held over from the November 5th Council meeting to take any additional written comments; none were received. Mr. Ian Munce, City Attorney, clarified affected slip owners will have the option to pay all 36 payments in advance to avoid monthly costs. The Mayor thanked Public Works and Finance Department for supporting this effort. With that, Mr. Geer moved, seconded by Petrish, to adopt Ordinance No. 2772 entitled "An Ordinance of the City of Anacortes, Washington, relating to storm and surface water management; amending and adopting a new Stormwater Management Plan, as part of the City's Comprehensive Plan; providing for and adopting Area -Specific Rates and Charges; amending Anacortes Municipal Code Section 13.10.010 and 13.10.020; and superseding Ordinance 2332." Vote: Ayes — Geer, Petrish, Pickett, and Richardson. Motion carried. Consent Aqenda Mr. Geer moved, seconded by Mr. Petrish, to approve the following Consent Agenda items Vote: Ayes — Petrish, Pickett, Richardson, and Geer. 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 8, 2007 and November 15, 2007 are approved for payment as of this date November 19, 2007. Claims Warrants Nov, 2007: Warrant Numbers 43726 through 43917 in the total amount of $462,392.38 EFT Nov, 2007: Warrant Numbers 43724 through 43725 in the total amount of $201.00 Pavroll # 1 for November 5, 2007 in the total amount of $673,905.76, Warrant Numbers 31560 through 31627 in the total amount of $237,336.73 Direct Deposit Numbers 24198 through 24312 in the total amount of $270,975.61 EFT Numbers 776 through 781 in the total amount of $165,593.42 In the same motion Council: Accepted the 2007 Street Improvements, Fidalgo Avenue Vicinity project (Schwetz Construction, Inc. - 06-064-TRN-001) as complete thereby initiating the mandatory lien period; and Accepted the Sunset Avenue Improvements Project (Colacurcio Brothers — 04-016-TRN-003) as complete thereby initiating the mandatory lien period. Resolution: Personnel Policv Update Ms. Emily Schuh, Human Resources Director, explained that the City conducts an annual update of Personnel Policies to ensure compliance with current employment law. Ms. Schuh outlined the extensive employee/union representatives/staff review of the proposed changes; the Council Personnel Committee also reviewed the amendments. Ms. Schuh then drew attention to a series of minor policy changes and a clarification to the communication policy. Mr. Geer thanked Mrs. Schuh for a job well done. Questions followed regarding paid time for jury duty. With that, Mrs. Richardson moved, seconded by Mrs. Pickett, to adopt Resolution No. 1747 entitled "A Resolution Regarding Personnel Policies and Benefits for City of Anacortes Employees and Superseding Resolution No. 1728 in its Entirety, passed and approved on the 16th day of October 2006." Vote: Ayes — Pickett, Richardson, Geer, and Petrish. Motion carried. Surplus Vehicles and Equipment Mr. Steve Hoglund, Finance Director, submitted a list of vehicles and equipment that have been eliminated from the fleet. Mr. Hoglund explained that in order to remove the equipment from fixed asset listing they need to be declared surplus by the City Council. Some of the listed items will be used for spare parts or disposed of; others will be sold by James G. Murphy, an auction warehouse. Mr. Petrish asked staff to investigate if the City could donate the vehicles toward humanitarian efforts. After discussion, Mrs. Pickett moved, seconded by Mr. Petrish, to declare those vehicles and equipment outlined in a November 19, 2007 Memorandum from Mr. Fred Buckenmeyer and Mr. Steve Hoglund to the City Council as surplus. Vote: Ayes — Richardson, Geer, Petrish, and Pickett. Motion carried. AWC Worker's Compensation Retrospective Proqram: Resolution to Participate in 2008 Mrs. Emily Schuh, Human Resources Director, presented a request for authorization to join the AWC Workers' Compensation Retrospective Rating Program effective January 1, 2008. This would allow for the City to work with an organization that focuses specifically on effective claims management, reduction of injuries, and appropriate training. This proposal was reviewed and discussed in detail by the Council Personnel Committee. With that, Mr. Geer moved, seconded by Mr. Petrish, to adopt Resolution No. 2139 November 19, 2007 - CONTINUED 1748 entitled "A Resolution Authorizing the City to Join the Association of Washington Cities Workers' Compensation Group Retrospective Rating Program" effective January 1, 2008. Vote: Ayes - Geer, Petrish, Pickett, and Richardson. Motion carried. Ordinance: Budget Adoption, (2) Resolution: Propertv Tax Levv Mr. Steve Hoglund, Finance Director, explained that a Public Hearing was held two weeks ago on the City of Anacortes 2008 Budget. No further public comments were made in the ensuing weeks, and there were no changes to the budget document now before Council. On a question from Mrs. Pickett, Mr. Hoglund explained that ambulance services will not be affected by recent action taken by the County regarding EMS services. Briefly, the Mayor said this was a prudent budget within a 1% property tax increase; the City was able to add some services; none were cut. With that, Mrs. Richardson moved, seconded by Mr. Petrish to adopt Ordinance No. 2771 entitled "An Ordinance Adopting the budget and Salary Schedule for all Municipal Purposes and Uses for the Year 2008", and to adopt Resolution No. 1749 entitled "A Resolution of the City Council of the City of Anacortes, Setting the City's Year 2008 Property Tax Regular Levy Increase". Vote: Ayes — Petrish, Pickett, Richardson, and Geer. Motion carried. Public Hearinq: Street Vacation — Chaffev Homes — Mayor Maxwell opened the public hearing on a petition to vacate a portion of 5th street adjacent to lots 13- 16, Block 12 of the 1St Plat of Ship Harbor. Mr. Fred Buckenmeyer, Public Works Director, explained this Public Hearing date was set by Council Resolution and notices were sent to property owners within 300 feet and posted on site. Mr. Buckenmeyer then used 3 overhead displays to illustrate key features of the property in question. A properly executed Petition was submitted by the petitioner, Chaffey Homes. If vacated, the property will be used for stormwater quality facilities to benefit the development of future lots on the east side of the property. By way of background, Chaffey Homes has submitted and withdrawn a number of vacation petitions for right-of-way in this general area. There were no public comments and the Mayor declared the Public Hearing closed. On a question from Mrs. Pickett, Mr. Buckenmeyer explained that the Board of Adjustment held a Public Hearing on this matter and voted to recommend approval with the proviso that the existing public access trail be maintained; Mr. Buckenmeyer confirmed that this requirement should not be a problem. With that, Mr. Geer moved, seconded by Mr. Petrish, to approve the vacation of Mr. Geer, to approve the vacation of a portion of 5th Street adjacent to Lots 13-16, Block 12 of the 1st Plat of Ship Harbor. Vote: Ayes — Pickett, Richardson, Geer, and Petrish. Motion carried. Mr. Buckenmeyer explained that the Engineering Department will determine the compensation required, and an Ordinance vacating the right of way will be brought back for Council adoption. Task Order HDR Water Use Efficiency Rule (State Requirement) Mr. Fred Buckenmeyer, Public Works Director, explained that the Municipal Water Law, Water Efficiency Rule, states that all major water purveyors in the State are required to set goals for water conservation and efficiency measures. The City's consultant, HDR Engineering has a process in place to analyze and measure the City's current conservation efforts as well as assist the City in developing future conservation measures. HDR, with assistance from the City, would be able to facilitate compliance with WUE Rule requirements. After discussion, Mrs. Richardson moved, seconded by Mr. Geer, to authorize the Mayor to enter into an Agreement with HDR Engineering in the amount of $23,682 to accomplish the tasks required by the WUE Rule and to meet the January 22, 2008 deadline. Vote: Ayes — Richardson, Geer, Petrish, and Pickett. Motion carried. Task Order HDR Phase 1/Flounder Bav Dredainq Mr. Fred Buckenmeyer, Public Works Director, explained that the City is ready to begin working with HDR Engineering for the management of Phase I of the Flounder Bay Dredging project. Mr. Buckenmeyer explained that Phase I covers background information collection, preliminary sediment sampling and analysis, marina biological reconnaissance, preliminary description of dredging needs, preliminary project cost opinion, project coordination, and meetings. With that, Mr. Geer moved, seconded by Mrs. Pickett, to authorize the Mayor to enter into a contract with HDR Engineering in the amount of $84,822 to complete the Flounder Bay Dredging Phase I project. Vote: Ayes — Geer, Petrish, Pickett, and Richardson. Motion carried. Ward 3 Appointment Mayor Maxwell initiated the discussion on an interim appointment for the Ward 3 Council position vacated by Mr. Loren Hoboy. Mr. Kevin McKeown has been elected to fill that seat on January 1, 2008 although the election, to date, has not been certified. Discussion followed regarding fulfilling this role prior to certification and oath of office procedures. With that, Mr. Geer moved, seconded by Mr. Petrish to appoint Mr. Kevin McKeown to fill the City Council Ward 3 position. Vote: Ayes — Petrish, Pickett, Richardson, and Geer. Motion carried. There being no further business, at approximately 8: 40 p.m. Mayor Maxwell adjourned the regularly scheduled meet of November 19, 2007. 31 Lk W Aa., �not,� Steven D. Hoglund, City Clerk -Treasurer ` \ H. Dean Maxwell, Mayor \ IAY-`Jl Councilmember r •� December 3, 2007 At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of December 3, 2007 to order. Roll call found present: Kevin McKeown, Nick Petrish, Erica Pickett, Brad Adams, Bill Turner, and Cynthia Richardson. Absent: Brian Geer. Roll call was followed by the Pledge of Allegiance. Mayor Maxwell announced that the Fidalgo Villas Preliminary Plat and Conditional Use Closed Record meeting and associated site visit have been cancelled. Minutes of October 1, 2007 Mr. Petrish moved, seconded by Mr. Adams, to approve the minutes of October 1, 2007 as if read. Mrs. Richardson pointed out a typographical error. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, and McKeown. Motion carried. Citizen Hearinqs No citizens present wished to testify on matters not on the agenda. Mayor/Council Communication The Mayor explained that there have been three significant legal issues pursued by the City of Anacortes over the course of the last dozen years; buffers around the Anacortes Airport; the 1996 Memorandum of Agreement regarding water rights providing water surety and certainty for the next 50 years for our constituents and those who buy water from us; and the Shoreline Master Program (SMP) regulations. With regard to the SMP, on November 29, 2007 the City argued in front of the State Supreme Court that the Critical Areas Ordinance, part of the Growth Management Act, does not apply to the City's shoreline. The Mayor said that the November 29'" hearing can be reviewed at TVW.com State Supreme Court (streaming video), on Channel 23, and will be available on the City's Government Access Channel. The Mayor underscored that the City intends to preserve our working waterfront. With regard to water rights issues, Mr. Ian Munce, City Attorney, reported to Council that in the midst of mediation with the County over different water issues, the Mayor received a request from Skagit County to intervene on the County's behalf on water issues. He reported that Friends of Skagit County challenged the agreed to approach to provide piped water to allow development next to low flow streams. Friends interprets this approach as encouraging growth. Several years ago the Washington Growth Management Hearings Board determined that the best method to protect streams is to provide piped water for residential development. Friends has elected to re -litigate this issue as part of the 2007 Skagit County Comprehensive Plan challenge. Mr. Munce referenced recent litigation regarding the Town of Roslyn in Kittitas County highlighting the critical issue of junior and senior water rights; a number of exempt wells (no monitoring required) were allowed adjacent to Roslyn; while Roslyn is curtailing its water use, rural water users are drawing water for uses outside the City limits. Mr. Turner commented on the significance of the 1996 MOA as a planning tool for the entire County. Mayor announced that Mr. Nick Petrish, Ward 1, and Mr. Brad Adams, Ward 2, will be sworn in as Council members during the first meeting in January; Mr. Kevin McKeown, Ward 3, was appointed to fill the vacant Ward 3 seat and was issued the oath of office in November; the Mayor formally welcomed Mr. McKeown to the City Council. Police Department Accreditation Award Presentation Mayor Maxwell introduced Mr. Gary Anderson, Washington Association of Sheriffs and Police Chiefs (WASPC). Mr. Anderson recognized the efforts of the Anacortes Police Department during the Department's recent accreditation process. Mr. Anderson pointed out that WASPC is the only state law enforcement association in the nation that includes members from federal, state, local regional, county, sheriffs office, municipal and tribal police departments. The WASPC member services includes a law enforcement accreditation program that agencies can voluntarily participate in to meet strict standards and to improve service delivery to the community. In that regard, the program has been available since 1978 and has had a long and successful history in the development of law enforcement agencies. The City of Anacortes had an outstanding result and met or exceeded all, save one, of the required standards. In fact, WASPC is recommending that the model instituted by the City of Anacortes be used in the overall WASPC accreditation process. In conclusion, the City of Anacortes Police Department not only practices the highest standards, but all policies and procures are in place; WASPC is proud of this Department. With that, Mr. Anderson asked Police Chief Mike King, and Captain Bonnie Bowers, to accept the WASPC Accreditation Award to a standing ovation. The Mayor thanked Police Chief King, Captain Bowers, Captain Ken Clark, and all the members of the Police Department and staff for their achievements and commitment to the City of Anacortes. Mr. Adams asked to talk about the outstanding sidewalk projects recently completed in the City of Anacortes; they include Fidalgo Avenue, Sunset Avenue, and along "J" Avenue near Island View Elementary School. These sidewalks were funded from different revenue sources and all provide safe pedestrian paths and links throughout the City. Mrs. Richardson also pointed out the partnering program provided by the City for sidewalk replacement. Deliberation: Fidalgo Villas Preliminary Plat and Conditional Use Applications. The Mayor announced that deliberation on the Fidalgo Villas Preliminary Plat and Conditions Use Applications has been cancelled. 2141 DECEMBER 3, 2007 - CONTINUED Consent Agenda Mrs. Richardson moved, seconded by Mr. Petrish, to approve the following Consent Agenda items. Vote: Ayes — Pickett, Adams, Turner, Richardson, McKeown, and Petrish. 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 29, 2007 are approved for payment as of this date December 3, 2007. Claims Warrants Nov, 2007: Warrant Numbers 43918 through 44054 in the total amount of $458,731.84 EFT Nov, 2007: Warrant Numbers 43928 and 43938 in the total amount of $162.00 Pavroll # 1 for November 20, 2007 in the total amount of $498, 079,79 Warrant Numbers 31628 through 31677 in the total amount of $51,474.20 Direct Deposit Numbers 24380 through 24542 in the total amount of $277,199.71 EFT Numbers 782 through 787 in the total amount of $169,405.88 In the same motion Council: Approved the Street Fair application for the Kiwanis Shop dedication on December 15, 2007, closing "O" Avenue between 4th and 5th Streets; the building will be renamed in honor of Mr. Leroy Hirni; and Approved the Lions Club Christmas Parade Street Fair application for December 8, 2007, Commercial Avenue closures from 10:00 a.m. to 12:00 p.m. Authorizinq Resolution: Youth Athletic Facilities Grant Mr. Jonn Lunsford, presented a request to Council for authorization to apply to the State Recreation and Conservation Office for a 2008 grant to help build a little league baseball field at Ace of Hearts/Rotary Park; the application will be handled through the Youth Athletic Facilities Program. The funding request is for $55,000; the City will supply matching funds in the form of labor, equipment and materials already donated, with approximately $40,000 in impact fees designated for the project. With that, Mrs. Pickett moved, seconded by Mrs. Richardson to adopt Resolution No. 1750 entitled "FY2008 Ace of Hearts/Rotary Park — A Resolution Authorizing Application(s) for Funding Assistance for a Youth Athletic Facilities Program (YAF) Project to the Recreation and Conservation Funding Board as approved for in Chapter 79A.25 RCW." Vote: Ayes — Adams, Turner, Richardson, McKeown, Petrish, and Pickett. Motion carried. Ordinance: Stormwater Utilitv Fee Increase and Stormwater General Facilities Charqe Increase Mr. Fred Buckenmeyer, Public Works Director, presented an Ordinance to Council for review and adoption. The Ordinance would follow up on the recommendation of the recently adopted Stormwater Comprehensive Plan to implement a rate increase to the monthly stormwater utility fee and an increase in the General Facilities Charge. The Plan and proposed rate increases were extensively reviewed with Council in November. Mr. Buckenmeyer explained that the monthly rate increases are driven by the Capital Facilities Plan and by the Department of Ecology NPDES Phase II permit requirements; he also gave a detailed description of the tasks/costs required by the NPDES requirements. After discussion, Mrs. Richardson moved seconded by Mr. Turner, to adopt Ordinance No. 2773 entitled "An Ordinance Amending Chapter 13.10 of the Anacortes Municipal Code to Increase General Facilities Charges and Monthly User Fees for the City Stormwater Utility." Vote: Ayes — Adams, Turner, Richardson, McKeown, Petrish, and Pickett. Motion carried. There being no further business, at approximately 8: 17 p.m. Mayor Maxwell adjourned the regularly scheduled meet of December 3, 2007. `0 Steven D. Hoglund, City Clerk -Treasurer H. Dean Maxwell, M yor A cilmember 2142 December 17, 2007 At 7:30 p.m. Mayor Maxwell called the regularly scheduled meeting of December 17, 2007 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 October 15, 2007 Mr. Petrish moved, seconded by Mr. Geer, to approve the minutes of October 15, 2007 as if read. Vote: Ayes — Petrish, Pickett, Adams, Turner, Richardson, Geer, and McKeown. Motion carried. Citizen Hearings No citizens present wished to testify on matters not on the agenda. Mavor/Council Communication Mayor Maxwell wished everyone a happy holiday, thanked the community for its great spirit, and encouraged everyone to help those less fortunate at this time of year. The Mayor reported on a recent ceremony held at the Water Treatment Plant celebrating the conclusion of 17 years of reconstruction work on the City's 70 -year old 24" waterline serving the western half of Skagit County to NAS Whidbey Island. This waterline is a major utility serving 56,000 residential customers and thousands of businesses; it is described as the single major capital infrastructure project serving Skagit and Island counties. With regard to the transmission system, the City has well-trained managers and operators and has exercised excellent long term planning. The Mayor said of particular note is the 1996 Memorandum of Agreement guaranteeing water rights over the next 50 years. The Mayor then presented City Pride of Service Awards to Councilmembers Brian Geer and Nick Petrish in recognition of 10 years of service with the City of Anacortes. Appointments: The Mayor asked for confirmation of the reappointment of Ms. Lin Folsom to the Anacortes Planning Commission. Mrs. Richardson so moved, seconded by Mrs. Pickett. Vote: Ayes — Pickett, Adams, Turner, Richardson, Geer, McKeown, and Petrish. Motion carried. The Mayor asked for Council's confirmation of the following Anacortes Historic Preservation Board appointments: Susan Rooks for a 3 -year term expiring November, 2010; Brent Morrison for a term to expire in June, 2010 (completing Don McKee's term); and Mike Trafton as an ad hoc member. Mr. Geer so moved, seconded by Mr. Petrish. Vote: Ayes — Adams, Turner, Richardson, Geer, McKeown, Petrish, and Pickett. Motion carried. Mavor's Award of Merit — Scott Parrett Mayor Maxwell introduced Mr. Scott Parrett who has been nominated by his supervisors to receive the Mayor's Award of Merit. Employed since May of this year, Mr. Parrett has already demonstrated outstanding performance in the Public Works Department. Supervisors and co-workers commended his positive attitude, initiative, and willingness to tackle unfamiliar and unpleasant jobs. Mr. Parrett accepted a gift certificate to a standing ovation. His name will be added to a commemorative plaque at City Hall. Mr. Petrish warned that English Ivy is a noxious weed and is threatening trees at Cap Sante and along the Tommy Thompson Trail. It's a difficult and time consuming job to remove the Ivy by hand. Mr. Petrish, together with the Parks Department, will be investigating funding sources to hire summer help for this specific purpose. A recent newspaper article reported the use of goats as a means of eliminating the Ivy. Consent Aqenda Mr. Adams, moved, seconded by Mr. Turner, to approve the following Consent Agenda items: Vote: Ayes — Turner, Richardson, Geer, McKeown, Petrish, Pickett, and Adams. 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 December 6, 2007 and December 13, 2007 are approved as of this date December 17, 2007. Claims Warrants Dec, 2007: Warrant Numbers 44058 through 44232 in the total amount of $978,634.54 EFT Nov, 2007: Warrant Numbers 44056 through 44057 in the total amount of $70.00 Prewritten Claims Dec, 2007: Warrant Number 44055 in the total amount of $20,667.77 Pavroll # 1 for December 5. 2007 in the total amount of $771.627.89 Warrant Numbers 31679 through 31739 in the total amount of $238,526.73 Direct Deposit Numbers 24542 through 24657 in the total amount of $335,348.14 EFT Numbers 788 through 793 in the total amount of $197,753.02 In the same motion Council adopted Ordinance No. 2774 entitled "An Ordinance of the City of Anacortes, Washington, granting a non-exclusive Franchise to Comcast of Washington IV, Inc. for the Construction, Operation, and Maintenance of a Cable System within the City Limits." 2.43 DECEMBER 17, 2007 - CONTINUED Update: Grant Application/Seismic Structural Upqrade — City Hall Mr. Ed Frank, Building Official, reported that the Federal Government, through FEMA, has provided an opportunity for agencies to apply for Federal Pre -disaster Mitigation Grant funds. This grant has been made available to help retrofit existing structures. The City is in the process of applying for a grant to upgrade the structural capacity of the Municipal Building; the building is structurally substandard from a seismic perspective. It is estimated that it will cost $3.5 million to pursue the project. Mr. Frank wanted the community to know about this proposed upgrade and invited public comment. On a question from Council, Mr. Frank explained that the building was constructed in 1915; the basic structure is fairly sound, but the reinforcement in the exterior walls and the basic structural connections between the wood framing and the exterior walls needs refurbishment. Over the next three weeks, public comments on the proposed grant application should be directed to Mr. Ed Frank, Building Official, at 360-293-1901 or to ed @citvofanacortes.orq. Ordinance: 2007 Budqet Amendment Mr. Steve Hoglund, Finance Director, presented an Ordinance to Council for review and adoption. The Ordinance represents 4th quarter 2007 Budget amendments. Mr. Hoglund explained that two funds exceed budgeted appropriations: (1) Washington Park - floats in need of repair; and (2) Library Fund — medical benefits, building repair and maintenance, and electricity. With that, Mr. Turner moved, seconded by Mrs. Pickett, to adopt Ordinance No. 2775 entitled "An Ordinance Amending Ordinance No. 2752 adopted on November 6th of 2006, entitled An Ordinance Adopting the Budget and Salary Schedule for all Municipal Purposes and Uses for the Year 2007." Vote: Ayes - Richardson, Geer, McKeown, Petrish, Pickett, Adams, and Turner. Motion carried. Presentation: Puqet Sound Initiative Mayor Maxwell introduced Mr. Tim Nord of the Washington State Department of Ecology (DOE). Mr. Nord, Ms. Dawn Hooper, and other DOE staff discussed the cleanup work that the Toxics Cleanup Program is conducting in the Fidalgo and Padilla Bay areas. Mr. Nord first thanked Mr. Ian Munce, Planning Director, for his support during the development of this local program. In December 2005, the Governor launched the Puget Sound Initiative (PSI) to restore and preserve the health of Puget Sound by the year 2020. There are five 5 top priority areas for immediate work. Mr. Nord is focusing on one of the five areas: accelerate control and cleanup of toxic pollution at in -water sites and within one-half mile of Puget Sound, 270 sites are waiting for clean-up. Historically, clean-up projects have taken up to 12 years to complete; that, together with the huge budgets necessary to do the work led the Department to reflect on ways to improve the system. The PSI capital budget and remedial actions grants were discussed. As a result of the study, DOE determined to focus on developing partnerships with the City, Port, resource agencies, and tribes, to engage the Anacortes community, and to promote information sharing and community input. As an example of a successful partnership, Mayor Maxwell complimented DOE on its participation in the City's 13th Street outfall project. DOE committed to fund half of this improvement project and to work in conjunction with the Port to improve water quality, and to "make the bays better". Mr. Nord said that there will be other similar opportunities to develop these successful working relationships. Mr. Turner remarked that the DOE approach is very refreshing and appreciated the support. Mr. Nord then explained the grant program and administrative agreement process. Mrs. Richardson asked about how the private sector factors into the clean-up team. Mr. Nord then introduced Ms. Sandra Caldwell, point person and coordinator for the entire cleanup effort on Fidalgo/Padilla Bay project, and Ms. Dawn Hooper, Senior Environmental Planner. On a question from Mr. McKeown, Mr. Nord said that are clean- up efforts underway in this area and the projects are slated for completion over the next 4-5 years. Resolution: Backhoe Purchase/Special Market Condition Mr. Steve Hoglund, Finance Director, presented a request to Council for authorization to purchase a demonstration model backhoe from the dealer for a $4,564.97 discount below the price charged for new models. The cost of the used backhoe exceeds the bid limit; because this is a used vehicle, the City can invoke a special market condition. Mr. Turner appreciated the cost saving effort and moved, seconded by Mr. McKeown, to adopt Resolution No. 1751 entitled "A Resolution Declaring the Purchase of a Backhoe in Accordance with the Specifications Outlined by the City of Anacortes Equipment Rental Division Creates a Situation in which the Equipment is Subject to 'Special Market Conditions' and a 'Sole Source Purchase' Authorizing a Direct Negotiation with the Supplier of the Equipment." Vote: Ayes — Geer, McKeown, Petrish, Pickett, Adams, Turner, and Richardson. Motion carried. Ordinance: Adoptinq Interim Zoninq Prohibitinq Multifamily Units in R 3 Zone/2008 Mr. Ian Munce, Planning Director, presented an Ordinance to Council for review and adoption. If adopted, the Ordinance would implement interim zoning prohibiting multifamily units in the R 3 zone north of 12th street and east of "D" Avenue during 2008. The Ordinance was drafted pursuant to the requests and considerations put forth in the Old Town Work Sessions held in November and December. By way of background, during recent Comprehensive Plan updates new sections were added regarding taking extra steps to protect the character and integrity of existing neighborhoods. The two areas identified by the Planning Department for consideration are the Central Business District and "Old Town." Meetings were scheduled for residences of both areas; in particular, the "Old Town" citizens agreed that a community process should be in place to develop standards for an "Old Town" neighborhood. Mr. Munce will come back to the Council in January with a funding request to contract with Mr. Mark Hinshaw, a nationally recognized neighborhood design expert. Mr. Munce offered that by the end of 2008 agreed upon design standards will be brought to Council for approval. 2144 DECEMBER 17, 2007 - CONTINUED However, the need for interim controls was highlighted; a number of neighborhood activists strongly suggested that the area be protected from dramatic change while the community works on developing these new standards. Mr. Munce explained that State law provides for interim controls; the Council needs to make a finding whether or not this constitutes an emergency situation; the vote on the Ordinance must be a majority plus one. If passed, a public hearing can be held, or the Council has the authority to act to place interim controls; the Council must then hold a Public Hearing within 60 days to rescind, modify, or change the interim controls. Two proposed modifications (1) R 3 zone — permitted uses: Duplexes, except that these uses are prohibited in the R 3 zone north of 12th Street and east of "D" Avenue durina the calendar vear 2008; and R 3 zone — conditional uses: Triplexes and fourplexes, except that these uses are prohibited in the R 3 zone north of 12th Street and east of "D" Avenue during calendar vear 2008. (2) add: lot coverage for structures shall be limited to 3,000 square feet. Mr. Turner suggested considering a moratorium on all building permits in this area until design standards are worked out. Mrs. Pickett commented on the significant public participation in this matter and suggested trusting the citizen input. Mr. Petrish said his main concern is for the preservation of historic buildings; he asked to review the recent survey of potential historical structures and discussed financial incentives to encourage preservation. Mr. McKeown, while supporting the preservation of "Old Town," suggested the City should first hold a public hearing on this matter. Mr. Adams spoke in favor of the public process to date, but said that the interim ordinance was not appropriate at this time; it could limit potential affordable housing. Mrs. Richardson spoke to the specific concerns raised at the neighborhood meetings regarding size and appropriateness of structures in their area. The interim controls would prevent an emergency from happening and would set the review process in motion. Mrs. Pickett again emphasized the support and concern of the neighborhood, and spoke in favor of interim controls. With that, Mr. Petrish moved, seconded by Mrs. Pickett, to approve the Ordinance adopting interim zoning prohibiting multifamily units in the R 3 zone. Mr. Geer encouraged everyone in this neighborhood to get involved in the decision process. Mr. Turner supported the right of citizens to determine design standards and to ask the City to incorporate these standards into the code. He then proposed an amendment to exclude any single family homes over 3,500 square feet. The Mayor pointed out that the proposal before Council prohibits a footprint over 3,000 square feet; Mr. Turner withdrew his amendment. Mr. McKeown spoke against the motion and suggested holding a public hearing the first meeting in January. Vote: Ayes — Petrish, Picket, Richardson, and Geer. No — McKeown, Adams, and Turner. Motion failed. Mrs. Richardson moved to adopt the interim ordinance and to amend Chapter 17.34.020 of the Municipal Code: Permitted Uses in the R 3 zone to read: Single family dwellings, except that during calendar year 2008, in the R 3 zone north of 12th street, east of "D" Avenue, and west of Commercial avenue, lot coverage for new or remodeled houses and their accessory structures shall be limited to 3,000 square feet Mr. Adams seconded the motion. After discussion, Mrs. Richardson withdrew her motion. Mrs. Pickett then moved, seconded by Mr. Geer to adopt Ordinance No. 2776 providing for interim zoning controls in the following manner: 17.34.020, Permitted Uses in the R 3 Zone: "Single family dwellings and duplexes, EXCEPT that during the calendar year 2008 in the R 3 zone north of 12th street, east of "D" avenue, and west of the CBD, lot coverage for structures shall be limited to 3,000 square feet. Vote: Aye — Petrish, Pickett, Adams, Turner, Richardson, Geer, and McKeown. Motion carried. Mr. Munce suggested holding the Public Hearing on January 28tH Water Riqhts Settlement: Action Item Mr. Ian Munce, Planning Director, explained that the latest water rights settlement package now before Council includes a proposed agreement between the City and Skagit County and the Department of Ecology relative to the County's new drinking water regulations, and a proposed settlement relative to the City's potential issues with proposed changes in the County's critical areas ordinance. Also included in the package is an adaptive management plan that provides a bridge between a number of competing concerns with regard to flow monitoring and corrective action. Mr. Munce reviewed the history of the 1996 Memorandum of Agreement that protects water rights in this region for the next 50 years; he also outlined the challenges to the MOA and how those issues have been, in part, resolved. Issues include reserving the right to future water, priority of uses, protecting existing streams, and encouraging the use of piped water. Mr. Petrish thanked the Mayor and Mr. Munce for working consistently with the full support of the Council to resolve these issues. Mr. Turner remarked on the consistent and skillful manner in which the Mayor and Mr. Munce have put the City's message forward; this agreement represents important economic stability for the region. With that Mr. Turner moved, seconded by Mrs. Pickett to authorize the Mayor to sign the Water Rights Settlement Agreement in the form presented. Mrs. Richardson emphasized that this agreement supports protecting salmon spawning streams. Vote: Ayes — Pickett, Adams, turner, Richardson, Geer, McKeown, and Petrish. Motion carried. There being no further business, at approximately 9:40 p.m. the Mayor adjourned the regularly scheduled evening meeting of December 17, 2007. Steven D. Hoglund, City Clerk-Treasur* H' Dean Maxwell, M yor Co cilmember