City Council

Oak Harbor City Council Workshop Meeting Minutes August 24, 2022 CALL TO ORDER Mayor Pro Tempore Hizon called the meeting to order at 2:00 p.m. This was both a physical meeting location and a virtual meeting The meeting was viewable live via YouTube at www.youtube.com/cityofoakharbor or could be viewed on Channel 10/HD 1090. Public Comments are not normally included for Council Workshops ROLL CALL City Council Present: Staff Present: Videoconference Mayor Robert Severns - absent City Administrator Blaine Oborn Mayor Pro Tem Tara Hizon Finance Director David Goldman Councilmember Beth Munns Development Services Director David Kuhl Councilmember Jim Woessner - absent Public Works Director Steve Schuller Councilmember Bryan Stucky Fire Chief Ray Merrill Councilmember Shane Hoffmire Deputy Fire Chief Mike Buxton Councilmember Dan Evans Police Chief Dresker Councilmember Eric Marshall Central Services Supervisor Sandra Place Archeologist Gideon Cauffman Building Official Ginger Pennington Utilities Manager Ryan Kinker City Administrator Executive Assistant Macalle Finkle City Clerk Julie Nester Also in attendance: Interim City Attorney Hillary J. Evans of Kenyon Disend, PLLC MAYOR Mayor Pro Tem Hizon called the workshop to order and welcomed those in attendance. She noted she was presiding on behalf of Mayor Severns and that consultants and some members of staff were participating virtually. COMMUNITY PARTNER PRESENTATIONS a. Windmill Update – Rotary Club of Oak Harbor Workshop Meeting Minutes August 24, 2022, Page | 1 Public Works Director Schuller explained that Brian Jones of the Rotary Club was unavoidably called away and could not attend to provide the club’s presentation as scheduled this afternoon. Director Schuller provided information on the complexity of potential permitting issues, as well as impacts that federal, state, and local regulations could have on project budgets and schedules. The Rotary Club has produced a draft schedule. The proposed structure will go inside the flood plane and will have to be reviewed by federal, state, tribal, and other local groups, which could cause scheduling delays, as could examinations of habitat, endangered species, and so on. Director Schuller praised the work of City Archeologist Cauffman on the project. The Rotary Club is expected to reschedule their presentation for a later date. Councilmember Stucky inquired whether Mr. Bill Larsen, who is on the Windmill Committee and was present for another matter wished to provide any comment. Mr. Larsen noted he was not prepared to speak at length but did note the large amount of support for the windmill from the community. PUBLIC WORKS a. Utility Rate Study Update Finance Director David Goldman and Public Works Director Schuller provided the update. They were joined by consultants Chris Gonzalez, Senior Project Manager and John Ghilarducci, Principal of the FCS Group and reviewed the agenda for the presentation. Director Schuller explained that development pays System Development Charges (SDCs) to contribute to the cost of the City Utility Infrastructure. There have been two plants, one built to replace the other. Both of which are being paid by existing rate customers. The Water SDC has been in place since 2004 and the Sewer SDC has been in place since 2014. There is currently no SDC for the storm drain utility. The City has seen a 22% growth in utilities since 2014 with a very low connection rate. New growth is not paying the costs for the Clean Water Facility and this is being borne by existing rate payers. The recommendation from the FSC Group is to significantly increase the cost of connection paid by developers, who would be notified and the costs phased in, so that new growth pays its fair share. Mr. Chris Gonzalez provided the update from FCS. He explained SDC’s further and reviewed the general methodology and key steps used to calculate costs. The SDC is a connection charge that: Is imposed on development to recover an equitable share of system costs Is based on the cost of existing assets and future capital projects Provides a source of funding for capital projects and / or debt service Mr. Gonzalez provided comparisons to other Washington cities for their water, sewer, and storm drain fees and provided an overview of the utility rate study process. He reviewed financial plans for utilities, water, sewer, solid waste, and storm drain and summarized the findings from the study. FCS recommends that the City can decrease sewer rates by 3%, keep water/storm drain rates at their existing levels, and implement modest increases to solid waste at aggregate rates. They recommend the City monitor utility financial status regularly and revisit the rate plans in 2005 or sooner as needed. They also recommend an update to water and sewer SDCs and establishment of a storm drain SDC to recover an equitable share of costs from growth. Phasing the increases in can help balance the impacts to development and existing ratepayers. Workshop Meeting Minutes August 24, 2022, Page | 2 Next steps include: • Refine financial plan based on Council input • Complete cost-of-service analyses for the water and sewer utilities o Determines equitable share of costs for each customer class o Can inform class-specific rate adjustments • Develop water/sewer rate structure alternatives o Improve alignment with City policy objectives  Revenue stability  Conservation  Affordability (particularly for low water users)  Simplicity  Equity/Proportionality (with respect to cost recovery within each class) Councilmembers Hoffmire, Stucky, Munns, Evans, Marshall and Mayor Pro Tem Hizon provided their respective comments and questions. Staff will bring and ordinance for rates to Council and provide an additional workshop regarding SDCs at a later date. DEVELOPMENT SERVICES a. ACTION ITEM – Larsen Annexation Development Services Director Kuhl noted the City has received an annexation request from Mr. William “Bill” Larsen, owner of a single lot, ½ acre parcel located at 957 Capital Street. The property is solely owned by the applicant and is zoned residential R-1. The property is contiguous to City property. Director Kuhl explained the decision to annex is at the discretion of the Council, as well as the imposition of any potential requirements. If the Council is in favor of moving forward, the annexation will be routed to the Public Works Department. Director Kuhl noted Mr. Larsen was present to speak regarding the request for annexation. Mr. Larsen spoke to expand on his letter of request for annexation. He noted most of his neighbors were not interested in annexation of their own property. He explained his request was only for his property and was prompted by a very old water system. Councilmembers Hoffmire, Munns and Mayor Pro Tem Hizon provided their respective comments and questions. Motion: Councilmember Munns moved to continue with the annexation process for the Larsen property. The motion was seconded by Councilmember Stucky. Councilmember Hoffmire clarified that the motion was slightly different from the suggested motion in the packet and whether this was acceptable. Director Kuhl noted it was. The vote on the motion passed unanimously. b. Zoning Code Revisions: Fire Sprinklers and Existing Building Code - Development Services Director Kuhl was joined by Fire Chief Merrill, Deputy Fire Chief Buxton and Building Official Pennington in reviewing the proposed code revisions. Workshop Meeting Minutes August 24, 2022, Page | 3 Chief Merrill provided an in-depth explanation of differing fire sprinkler systems, licensing certifications, and their uses. A 13D Fire Sprinkler System is proposed as a Municipal Code change for Townhouses and Duplex Units. 13D systems are included in State of Washington building regulations, however the City has not yet required them in townhouse and duplex units. Chief Merrill showed a video with the comparison between units with a 13D system and those without in a fire. The approximate cost increase to builders installing the system is $3.50-4.50 per square foot and these would only be required in living spaces. Chief Merrill explained ways a developer can save in other development costs if installing a 13D system in new construction. Councilmembers Marshall, Hoffmire, Stucky, Evans and Mayor Pro Tem Hizon provided their respective comments and questions. FINANCE a. City of Oak Harbor: Financial Primer, Part 2 – In the interest of time, Administrator Oborn and Finance Director Goldman noted staff would be amenable to postponing the Financial Primer to another date. This met with the consensus of the Council. BREAK Mayor Pro Tem Hizon called for a brief recess at 4:25 p.m. At 4:34 p.m. the Council resumed the workshop. FIRE DEPARTMENT a. Fire Vehicle Replacements Central Services Supervisor Sandra Place provided an overview of scheduled vehicle replacements as budgeted. She explained the 2021-2022 Biennial Budget included funds to replace two 2004 Chevy Tahoe SUV’s. Supervisor Place reported no contract pricing is currently available due to nationwide shortages. In reviewing current and future department needs, staff found it would be better to obtain two trucks, for which there is greater availability. She noted that hybrid or all electric vehicles were more costly and were also unavailable. Staff’s proposal is to obtain the two trucks at an estimated cost of $50,000 per vehicle and $20,000 to outfit each as needed, for a total cost of $70,000 per vehicle. Funding for this purchase via a state contract is available in the Equipment Replacement Fund. Staff will bring this to the Council for action at the September 6, 2022 meeting. If the Council approves the purchase, staff will sell the 2 Tahoe’s once the new trucks arrive and are in service. Councilmember Stucky and Mayor Pro Tem Hizon provided their respective comments and questions. Workshop Meeting Minutes August 24, 2022, Page | 4  b. Fireworks Discussion Fire Chief Merrill led a discussion regarding the sale and use of fireworks within the City limits, as well as a report of fireworks related incidents responded to. He explained that by state law, safe and sane fireworks can sold or discharged during the period of each June 28th through July 5th and on December 31st. Other area Whidbey Island cities and towns have differing regulations on fireworks. Langley does not allow them at all and Coupeville allows them only on July 4th. While there have been complaints made to the Fire Department about fireworks, Chief Merrill noted Oak Harbor has been fortunate not to have had a lot of fireworks related incidents over the past 20 years. He noted illegal fireworks were available outside of Anacortes. Chief Merrill asked what direction the Council would like to go. He noted any enforcement changes would have a year lag time and would not go into effect until 2024. Councilmembers Stucky, Hoffmire, Munns and Mayor Pro Tem Hizon provided their respective comments and questions. Chief Merrill will do further research on the policies of other nearby cities and report back to Council. He noted fireworks are on allowed to be discharged on Federal, City or School District property. ADMINISTRATION a. City Administrator’s Report City Administrator Oborn provided the report, noting this month was his 4-year anniversary with the City. He noted the great team at the City and responded to any questions from the Council. He highlighted the following areas and items: • The Center held its annual appreciation picnic on August 5th which helped to spotlight the great community services the Center provides. • Attended Leadership Training at the Washington City/County Management Association Summer Conference – Notable topics of the conference included: o The announcement and congratulations to Communications/IT Manager Sabrina Combs who was among those recently accepted into the Northwest Women’s Leadership Academy (NWWLA), an exciting program sponsored by the WCMA to advance women working in local government into leadership roles. o Occupational Burnout and the Role of Leadership. Key takeaways: Work toward balancing multiple tasks rather than multitasking o Facing the Great Resignation with Grit and Lean. The Great Resignation is actually the Great Reshuffle • Launch of the City’s new website will be coming soon. Staff continues to edit and create content on the new website. • Communications/IT Manager Combs has produced several videos that highlight City Workshop Meeting Minutes August 24, 2022, Page | 5  projects. • Interviews begin next week for selected candidates for the Parks & Recreation Director position. • The All-Staff Summer Picnic is tomorrow, August 25th from 11:00 a.m. – 1:00 p.m. Council was invited to attend. • Effluent Dye Study at Clean Water Facility: The Washington Department of Health (WDOH) and the United States Food and Drug Administration (FDA) are performing a mixing zone study of the effluent wastewater that is discharged from the City’s Clean Water Facility. • Future Harbor Heights Park Development On-Hold: As part of the “no surprises” draft Council-Staff Guidelines, the Council was updated in early August on the Harbor Heights Sports Complex. The engineering cost estimate for the proposed Phase 1 (two large soccer fields, initial utilities, and parking lot) Harbor Heights project, based on 90% design, with contingency totaled approximately $11.5 million. This does not include road access costs. Once available funding and priorities are identified during the 2023-2024 budget process, the City can put together a realistic strategy and phasing schedule based on community input. Councilmember Hoffmire provided his respective comments and questions. CITY COUNCIL a. Executive Session: To discuss with legal counsel, litigation, or potential litigation per RCW 42.30.110 (1) (i). Mayor Pro Tem Hizon announced the Council would take a short break and then move into Executive Session to discuss potential litigation. The executive Session was expected to be ten minutes and no action was anticipated upon return to the open session. Executive Sessions are not open to the public. The Council entered into Executive Session at 5:10 p.m. At 5:20 p.m. the Council came out of Executive Session and resumed the open session. Mayor Pro Tem Hizon noted no action would be taken regarding the matter discussed. She called for any additional comments from members of Council and hearing none, called for a motion to adjourn. ADJOURN Motion: Motion to adjourn by Councilmember Stucky, seconded by Councilmember Marshall. The vote on the motion carried unanimously, therefore the workshop adjourned at 5:20 p.m. Certified by Julie Nester, City Clerk Workshop Meeting Minutes August 24, 2022, Page | 6