City Council

Mount Vernon City Council Regular Meeting Minutes November 08, 2017 The meeting was called to order by Mayor Boudreau at 7:01 p.m. Present: Mayor Boudreau, Councilmembers Fiedler, Hudson, Hulst, Lindquist, Molenaar, Quam and Ragan Staff Present: Public Works Director Bell, Fire Chief Brice, Street Department Supervisor Brickley, Engineering Manager Chesterfield, Project Administrator Donovan, Wastewater Treatment Plant Manager Duranceau, Police Chief Dodd, Solid Waste Manager Hanson, Library Director Huffman, Parks and Enrichment Director King, Information Systems Director Kleppe, Senior Planner Lowell, Assistant Public Works Director Love, Equipment Rental Supervisor Owens, Development Services Director Phillips, Fire Marshall Riggs, Finance Director Volesky and Parks Manager Weppler Citizens Present: 7 CONSENT AGENDA A. Approval of October 25, 2017 Regular Council meeting minutes. B. Approval of November 3, 2017 payroll checks numbered 107686 - 107732, direct deposit checks numbered 63023-63235, and wire transfers numbered 639 - 640 in the amount of $828,913.76. C. Approval of November 8, 2017 claims numbered 155097 – 152100 and 152104 - 152256 in the amount of $603,663.68. Councilmember Hudson moved to approve consent agenda items A-C. Motion seconded by Councilmember Quam. Motion carried 7-0. REPORTS A. Committee Reports: • Public Works • Public Safety B. Community Comments: • Scott Corea came forward to express his support of Library Director Huffman. He commented also on a drive by shooting that took place near his home and was disappointed in the reporting that was done in the Skagit Valley Herald. He is concerned with the amount of tagging that is taking place in his neighborhood. He made suggestions for uses of the old jail as well. C. Councilmember Comments: Councilmember Lindquist moved to cancel the November 11, 2017 meeting and setting the next meeting for regular Council for November 28, 2017. Motion seconded by Councilmember Hulst. Motion carried 7-0. • Councilmember Ragan rebutted a letter that was published in a recent Skagit Valley Herald. • Councilmember Fiedler announced that the City is working with the CDBG advisors to determine how to utilize CDBG funds to fullfil a request for capital funds from Skagit County Community Action. Mount Vernon City Council November 08, 2017 Page 2 of 5 D. Mayor’s Report • Mayor Boudreau has signed a proclamation declaring November as Hospice and Palliative Care Month. • Mayor Boudreau showed pictures of the Kulshan Creek railroad bridge and culvert project. This created a more natural passage for fish and was a cooperative project with Burlington Northern Railroad. • Mayor Boudreau shared plans for the Veterans Day celebration. • Mayor Boudreau reviewed Mayor’s Coffee hours and indicated that there would be none in December. NEW BUSINESS A. Interlocal Agreement with Skagit County: Mr. Huffman presented Council with a request for authorization for the Mayor to enter into an interlocal agreement with Skagit County for Library Services. In exchange for the City providing Library services available to residents of unincorporated Skagit County the Councty will provide $14,708 to assist in providing materials to those residents. Councilmember Fiedler moved to authorized the Mayor to enter into an agreement with Skagit County for Library services. Motion seconded by Councilmember Molenaar. Motion carried 7-0. B. Professional Services Agreement: Mr. Phillips presented Council with a request for authorization for the Mayor to enter into an interlocal agreement with Paladin, SmartGov for provision of end to end permit and inspection software that would automate permit workflow. Councilmember Hulst moved to authorized the Mayor to enter into an agreement with Paladin, SmartGov for permit and inspection software. Motion seconded by Councilmember Quam. Motion carried 7-0. C. Interlocal Agreement with Washington State Department of Transportation (WSDOT) : Mr. Love presented Council with a request for authorization for the Mayor to enter into an agreement with WSDOT for preliminary engineering signal design for the College Way/30th Street project in the amount of $160,000. Councilmember Lindquist moved to authorize the Mayor to enter into an agreement with Washington State Department of Transportation for preliminary engineering for College Way/30th Street signal project. Motion seconded by Councilmember Ragan. Motion carried 7-0. D. Agreement with Reichardt and Ebe Engineering : Mr. Love presented Council with a request for authorization for the Mayor to enter into an agreement with Reichardt and Ebe Engineering for professional services for design construction of a signal at the intersection of College Way and 30th Street. This also included ADA improvements, utility relocation, traffic analysis, signal coordination andtravel lane realignment. Councilmember Lindquist moved to authorize the Mayor to enter into an agreement with Reichardt and Ebe Engineering for professional services for the College Way/30th Street signal project. Motion seconded by Councilmember Hudson. Motion carried 7-0. Mount Vernon City Council November 08, 2017 Page 3 of 5 E. Approval of Grant Agreement with Washington State Department of Ecology (WSDOE) : Mr. Chesterfield presented Council with a request for the Mayor to execute the FY 2017-19 Water Quality Stormwater Capacity Grant agreement. This agreement will provide $50,000 of grant funds for the implementation of the City’s National pollutant Dischage Elimination System (NPDES) Phase II Municipal Stormwater Permit. The City has been in compliance with the permit since February 2007. Councilmember Hulst moved to authorize the Mayor execute the FY 2017-19 Water Quality Stormwater Capacity Grant agreement with WSDOE. Motion seconded by Councilmember Fiedler. Motion carried 7-0. F. Public Hearing Regarding Code Amendments Addressing Cannabis Transportation Licensee Businesses: Ms. Lowell presented Council with a request to hold a public hearing a possible adoption of an Ordinance reluating cannabis transportation licensee businesses. The Development Services Department has created a work plan and is requesting Council approve this plan. The proposed Ordinance is an interim one that continues controls of the cannabis transportation licensee businesses. The anticipated public hearing date for Planning Commission is November 21 and Council on 12/13. Mayor Boudreau opened the public hearing • Scott Corea came forward to support the extension requested. He was concerned that the public notice was not published prior to todays public hearing and complained that the web data was not definitive. There being no further comments Mayor Boudreau closed the public hearing. Councilmember Fiedler moved to approve Ordinance 3732 establishing interim controls of the cannabis transportation licensee business. Motion seconded by Councilmember Hudson. Motion carried 7-0. G. Public Hearing to Consider Adoption of the 2018 City Budget: Mayor Boudreau recapped the budget process noting that the focus for the budget is mission driven and stresses efficiency in traditional services. The budget process follows state law and is a zero based budget projection. The process starts with budget call in July. The ensuing months have had many conversations with departments and work study sessions with Council. The $59.3 million preliminary budget is a 7.6% increase over 2017. The Governmental Operating budget is $30,199,208 million which is an increase of $1,531,024, or 5.3% over the 2017 budget. The preliminary budget has $600,000 in fund balance utilized to balance the budget. The estimated 2018 year-end fund balance is $3,827,497. The budget follows adopted strategic goals and financial policies. Mr. Volesky indicated that the preliminary expenditure budget exceeds the projected revenue by $464,659 in the government operating funds. He further discussed the revenue projections that were utilized to establish the preliminary budget. Sales tax assumes a 7.5% growth and additional property tax for new construction is $127,752. The Real Estate Excise Tax growth projection is 33% or $300,000 over the 2017 budget. Additionally a Surface Water rate increase was used for that budget. Expenditure increases include new positions, health care premiums, and charges from Skagit 911. There are three new FTE positions and the restructuring of three part-time positions to full time. Mayor Boudreau opened the public hearing • Scott Corea came forward to state that he does not support adding a new officer to the Police Department because the department consistently has open positions. Mount Vernon City Council November 08, 2017 Page 4 of 5 There being no further comments Mayor Boudreau closed the public hearing. Mayor Boudreau solicited Councilmember comments. • Councilmember Hudson indicated that she would favor raising the property tax by $190,000 and retain the proposed Police Officer. • Councilmember Hulst indicated that he would like property tax increased by $160,000 and increasing the estimate for sales tax to $70,000. Additionally he would request that the Mayor reduce departmental expenditures by $27,000. • Councilmember Quam suggested removing the proposed Police Officer position as a expenditure control. • Councilmember Fiedler indicated that the staffing levels are important and would support property tax being used to fund those requests. He is also opposed to eliminating the expenditure budgets for facility repairs. • Councilmember Lindquist indicated that he would favor a reduction to the ER&R fund of $37,806, retain the Police officer and would support $160,0000 in new property tax. • Councilmember Molenaar asked if the Mayor would cut $20,000 from the department budgets and she said she would gladly work with staff on that. He wants to increase the sales tax by more than $70,000 and agreed that staff must be funded with property tax. • Councilmember Ragan agrees with funding staff with property tax. He believes that keeping open positions in the PD is not realistic. He would like a regular reporting to Council regarding vacant staff positions. Discussion ensued regarding Community Court and how that could be funded. Councilmember Fiedler suggested a budget amendment next year to create the funding for this. The agreed upon changes are: • Increase estimate for property tax by $160,000. • Increase estimate for sales tax by $70,000. • Decrease City Street Fund revenue estimate by $11,000. o Total revenue increased from preliminary budget of $57,511,030 to $59,233,640 including use of budgeted fund balances. • Decrease expenses by $60,000 by removing a requested Police vehicle. • Decrease expenses by $37,806 by decreasing the amount of replacement reserve expense by that amount. • Decrease expenses by $66,000 by delaying the hiring of a Fire Inspector to July and eliminating a part time office position in the Fire Department. • Decrease expenses by $60,000 by delaying the decision on a Community Court contract until 2018 and reducing the funding for Urban Forestry program by $15,000. • Decrease departmental budgets by $25,000. • Increased departmental budgets by $124,099 for increases in healthcare premiums, COLAs and negotiated wage increases. o Total expenditure decreased from preliminary budget of $59,384,348 to $59,233,640. Councilmember Fiedler moved to adopt Ordinance 3733 approving the 2018 City Budget with the changes as outlined. Motion seconded by Councilmember Hulst. Motion carried 7- 0. H. Set 2018 Property Taxes: Mr. Volesky indicated that incorporating the change to property tax that was outlined above, the proposed ordinance setting the 2018 Property Tax levy for the City of Mount Vernon is 101% of the 2017 revenue amount and utilizing $87,084 of bank capacity for a total of $160,000 or a 2.19% increase. In addition, the dollar amount increase from the previous year will include an increase resulting from new construction and refunds made. The total 2018 Mount Vernon City Council November 08, 2017 Page 5 of 5 Regular Levy amount is $7,602,182. The bond levy expires in 2017 so no additional excel levy was requested for 2018. Councilmember Lindquist moved to approve Ordinance 3734 setting the 2018 property tax allowing for 101% of 2017 revenue, new construction, refunds and utilizing banked capacity for a total of $7,602,182. Motion seconded by Councilmember Fiedler. Motion carried 7-0. There being no further business the meeting was adjourned at 8:41 p.m. SUBMITTED BY: ______________________________________________ Rebecca J. Wade, Recording Amanuensis ATTEST: ______________________________________________ Doug Volesky, Finance Director APPROVE: ______________________________________________ Jill Boudreau, Mayor