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City Council

Regular Meeting

Mount Vernon, WA · November 4, 2020

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Minutes

City of Mount Vernon City Council Study Session Minutes November 4 2020 6:00 p.m. (Virtual Meeting) The meeting was called to order by Mayor Boudreau at 6:12 p.m. Present: Councilmembers Beaton, Brocksmith, Carías, Hudson, Hulst and Molenaar Staff Present: City Attorney Rogerson, Finance Director Volesky, Police Chief Cammock, Fire Chief Brice, Project Development Manager Donovan, Parks and Enrichment Director Berner, Development Services Director Phillips, Information Systems Director Kleppe, Human Resources Director Keator, Public Works Director Bell and Library Director Huffman Citizens Present: 1 A. Public Safety Update: • Fire: Chief Brice discussed the FEMA Building Resilient Infrastructure and Communities (BRIC) Grant. A pre-application has been submitted to the State of Washington and the Grant application has been prepared but has not yet been submitted. • Police: Chief Cammock provided a staffing/operations update. B. City Councilmember Vacancy Process Discussion: Mayor Boudreau presented a draft process and application packet for filling of a City Council vacancy. A discussion regarding timelines and the interview process took place. Councilmember Hulst moved to approve the process for filling a City Council vacancy as presented. Motion seconded by Councilmember Beaton. Motion carried 6-0. C. Water and Sewer Revenue Refunding Bond, 2020: Mr. Volesky requested approval of an ordinance allowing for the issuance of Water and Sewer Revenue Refunding Bonds in an amount not to exceed $9,100,000 for the purpose of refunding outstanding bond obligations of the Wastewater Utility. The City could realize approximately $600,000 savings over the remaining term of the loan. The City’s Bond Counsel Cynthia Weed of K&L Gates, LLP was present to discuss the specifics of the bond ordinance. Councilmember Hudson moved to approve Ordinance 3815 allowing the issuance of Water and Sewer Revenue Refunding Bonds in an amount not to exceed $9,100,000. Motion seconded by Councilmember Molenaar. Motion carried 6-0. Mount Vernon City Council November 4, 2020 Page 2 of 2 D. 2021 Preliminary Budge Discussion: Mr. Volesky presented minor adjustments to the 2021 budget. Ordinances for adopting the 2021 budget and setting the property tax levy will be presented at the November 12, 2020 City Council Meeting. E. For the Good of the Order: • Mayor Boudreau stated that Bakerview Park gates will be opened beginning next week. • Mayor Boudreau discussed the schedule for Council meetings for the remainder of the year. • Mayor Boudreau reviewed information presented by Skagit County Public Health. The meeting was convened into Executive Session at 7:14 p.m. for a discussion with legal counsel on matters relating to enforcement actions, litigation or potential litigation to which the City, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. The duration of the Executive Session is estimated to be thirty minutes. The City Council meeting reconvened at 7:44 p.m. The meeting was adjourned at 7:44 p.m. SUBMITTED BY: Becky Jensen, Recording Clerk ATTEST: Doug Volesky, Finance Director APPROVE: Jill Boudreau, Mayor

Agenda

CITY OF MOUNT VERNON CITY COUNCIL STUDY SESSION Agenda November 4, 2020 – 6:00 p.m. (Virtual Meeting) The Mount Vernon City Councilmembers will be participating in this meeting via video/teleconference technology. To virtually attend the meeting, the public may: 1. Call the conference line: 1-888-924-9240; Access Code: 3366211 (please ‘mute’ your phone, if possible, to minimize distractions) 2. Watch the meeting live on TV10: Comcast/Xfinity Channel 10 3. Watch the meeting live, online: https://www.youtube.com/channel/UCUob_hcQUmd4S93YkletdrA A. Public Safety Update  Fire: FEMA Building Resilient Infrastructure and Communities (BRIC)  Police: Staffing/Operations Update B. City Councilmember Vacancy Process Discussion (Staff is requesting that Council approve a process for the Mayor and staff to follow to assist City Council in appointing a City Councilmember when a vacancy occurs.) (required action – motion) (staff contact – Mayor Boudreau) C. Water and Sewer Revenue Refunding Bond, 2020 (Staff is requesting that Council adopt a bond ordinance allowing for the issuance of Water and Sewer Revenue Refunding Bonds of the City in the principal amount of not to exceed $9,100,000 for the purpose of refunding outstanding bond obligations of the Wastewater Utility.) (required action – ordinance) (staff contact – Doug Volesky) D. 2021 Preliminary Budget Discussion (Staff will lead a discussion and take question from “Councilmember regarding the 2021 Preliminary Budget.) (required action – none) (staff contact – Doug Volesky) E. For the Good of the Order COMMITTEE MEETINGS Public Safety cancelled Next Ordinance 3815 Next Resolution 985 ITEM: B DATE: November 4, 2020 TO: City Council FROM: Mayor Boudreau SUBJECT: CITY COUNCIL VACANCY RECOMMENDED ACTION: Approve a process for the Mayor and staff to follow to assist City Council in appointing a City Councilmember when a vacancy occurs. INTRODUCTION/BACKGROUND: On October 7, 2020 Ms. Erin Moberg resigned her position as Councilmember for Ward 1. The process for filling the City Council Ward 1 position must be completed prior to January 5, 2021 (90 days from the effective date of her resignation). Councilmember Moberg’s term was effective January 1, 2020, and would have expired on December 31, 2023. The newly appointed council member will serve from his or her time of appointment, until the certified election of a qualified candidate from the November 2021 general election. The council member elected for this position in November 2021 will serve a “short term;” from the time of the certification of the November 2021 general election results, through the remaining unexpired dates of Councilmember Moberg’s term (December 31, 2023). All candidates considered for this position must meet all eligibility requirements stated in RCW 35A.12.030. On October 28, 2020 City Council discussed the process, application, and time line for an appointment. FINDINGS/CONCLUSIONS: There is currently no formal process for filling a vacated City Council position. The Mayor and staff recommend a simple process format for clarity, transparency, and consistency for this Council action. RECOMMENDATION: Motion to adopt process for filling a vacated City Council position after reviewed by the City Council. ATTACHED: City Council vacancy application and information packet Process outline and suggested dates for action ITEM: C DATE: November 4, 2020 TO: Mayor Boudreau and City Council FROM: Doug Volesky, Finance Director SUBJECT: WATER AND SEWER REVENUE REFUNDING BONDS, 2020 RECOMMENDED ACTION: Staff recommends that Council adopt the attached ordinance allowing for the issuance of Water and Sewer Revenue Refunding Bonds of the City in the principal amount of not to exceed $9,100,000 for the purpose of refunding outstanding bond obligations of the Wastewater Utility. INTRODUCTION/BACKGROUND: The City of Mount Vernon currently has a principal amount outstanding of $8,859,080.48 on our Department of Ecology State Revolving Loan Fund issued for the upgrade of the City’s Wastewater Treatment Plant Upgrade. The original principal amount of the loan was $16,963,790.82 with an interest rate of 2.60% and allows for a prepayment option on any date upon prior notice. FINDINGS/CONCLUSIONS: Due to the current economic market, it is estimated that the City could realize about $600,000 of net savings over the remaining term of the loan thru 2029 if we refunded this loan with current lower rates. The City has been working with bond counsel, Cynthia Weed with K&L Gates LLP and financial advisor, Dave Trageser, Managing Director of Local Government Finance with D.A. Davidson & Co. on the presentation of this refinancing. RECOMMENDATION: Staff recommends that Council adopt the attached ordinance allowing for the issuance of Water and Sewer Revenue Refunding Bonds of the City in the principal amount of not to exceed $9,100,000 for the purpose of refunding outstanding bond obligations of the Wastewater Utility. ATTACHED: Ordinance prepared by K&L Gates LLP ITEM: D DATE: November 4, 2020 TO: Mayor Boudreau and City Council FROM: Doug Volesky, Finance Director SUBJECT: 2021 PRELIMINARY BUDGET DISCUSSION - CONTINUED RECOMMENDED ACTION: No action is required. INTRODUCTION/BACKGROUND: City staff will be leading a discussion and taking questions from Councilmembers regarding the City of Mount Vernon’s 2021 Preliminary Budget. FINDINGS/CONCLUSIONS: None. RECOMMENDATION: None. ATTACHED: None.

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