City Council

Oak Harbor City Council Regular Meeting Minutes December 13, 2022 This was both a physical meeting location and a virtual meeting. Meeting was viewable live via YouTube at www,youtube.com/cityofoakharbor , on Facebook, and on Cable Channel 10/HD 1090 following the meeting CALL TO ORDER Mayor Severns called the meeting to order at 6:00 p.m. Invocation – Chaplain David Lura, Navy League Pledge of Allegiance – Led by Mayor Severns ROLL CALL City Council Present: Staff Present/Videoconference Mayor Robert Severns City Administrator Blaine Oborn Mayor Pro Tem Tara Hizon Finance Director David Goldman Councilmember Beth Munns - absent Public Works Director Steve Schuller Councilmember Jim Woessner Development Services Director David Kuhl Councilmember Bryan Stucky Parks and Recreation Director Brian Smith Councilmember Dan Evans Fire Chief Ray Merrill Councilmember Shane Hoffmire Deputy Fire Chief Mike Buxton Councilmember Eric Marshall Police Captain Tony Slowik Finance & Performance Analyst Chas Webster Communications & IT Manager Sabrina Combs Executive Assistant Macalle Finkle City Clerk Julie Nester Also in attendance: City Attorney Hillary J. Evans of Kenyon Disend, PLLC EXCUSE ABSENT COUNCILMEMBERS Mayor Pro Tem Hizon participated virtually. Mayor Severns noted Councilmember Munns had asked to be excused and requested a motion. Motion: Councilmember Woessner moved to excuse Councilmember Munns. Councilmember Hoffmire seconded the motion, which carried unanimously. 1. APPROVAL OF AGENDA Mayor Severns welcomed all in attendance and called for any changes to the agenda. Hearing none, the agenda was approved as presented. Regular Meeting Minutes December 13, 2022 Page 1 of 8 2. PRESENTATIONS a. Proclamations – None b. Honors & Recognitions - None c. Community Presentations – None 3. CITIZEN COMMENT PERIOD Mayor Severns noted citizens may comment on Consent Agenda items or subjects of interest not listed on the agenda at this time. Citizens will have the opportunity to comment on the remaining Agenda items during the meeting as appropriate. Citizens can also visit the City’s website prior to meetings for methods to submit public comment, or contact the City Clerk, Julie Nester by phone or email as noted on screen. When submitting comments, please include your name and address. Public comments sent anonymously will be shared with the Mayor and Council but will not be displayed. The City received no comments since the last regular meeting Mayor Severns opened the floor for public comment from any audience member present. 1. Ms. Jay Cochran, Executive Director of the North Whidbey Pool, Park, and Recreation District, thanked Council for the Lodging Tourism Advisory Committee grant recommendation and partnership with the City. Hearing no one else with a desire to address the Council, the public comment period was closed. 4. CONSENT AGENDA Consent Items a. Approval of Minutes of the December 6, 2022 Council Meeting b. Approval of Payroll and Accounts Payable Vouchers c. Island County: Second Amendment to Interlocal Agreement – Island County District Court d. NE 7th Avenue Reconstruction – Trantech Engineering Contract Amendment No. 01 e. Oak Harbor CWF – Professional Services Contract Amendment No. 3 with Carollo Engineers for On-Call SCADA Services f. Purchase Authorization – Front Load Commercial; Garbage Trucks g. Professional Services Agreement – Amendment No. 12 with Semrau Engineering for Sur- veying & Consulting Services h. Resolution 22-26: Lodging Tax Advisory Committee Awards for the 2% Grant Applications Mayor Severns called for any changes to the consent agenda. Councilmember Marshall requested dis- cussion for item h. Resolution 22-26: Lodging Tax Advisory Committee Awards for the 2% Grant Appli- cations. Mayor Severns noted items a. thru g. were approved as presented. He opened discussion on item h. Councilmember Marshall questioned the awards to the Pool for a new slide and to the Oak Harbor Youth Sailing for updates to their logo/marketing/website as he was not sure how these would bring more people into town. Finance Director Goldman introduced Finance & Performance Analyst Webster to provide the LTAC recommendations. She reviewed the requirements for use of revenues per RCW as well as background on the applications and the Committee’s scoring and decision process. Regular Meeting Minutes December 13, 2022 Page 2 of 8 Councilmembers Marshall, Stucky, Evans, Hoffmire and Mayor Pro Tem Hizon provided their respective questions and comments. Councilmember Stucky, who served as Chair of the LTAC this year, called on NWPPRD Executive Director Jay Cochran to provide further details and information regarding their ap- plication for the slide funding. NWPPRD Commission Chair Julie Brooks-Leete also provided comments. Motion: Mayor Pro Tem Hizon moved to Adopt Resolution 22-26 approving the Lodging Tax Advisory Committee (LTAC) recommended awards for the 2% Grant multi-year and single year applications for grant year 2023. Councilmember Hoffmire seconded the motion. Councilmember Marshall inquired whether Councilmember Hoffmire should recuse himself from voting as he is an employee of NWPPRD. Councilmember Hoffmire responded that he is the Director of Mainte- nance for the pool and that he had asked this question of the Washington State Attorney whom he said noted no conflict. With discussion concluded, Mayor Severns called for a vote on the motion to adopt Resolution 22-26, which passed 3-2-1 with Mayor Pro Tem Hizon and Councilmembers Hoffmire and Stucky in favor, Councilmembers Marshall and Evans opposed and Councilmember Woessner abstaining. City Attorney Evans noted councilmembers should abstain if approval of an item benefits them or their employer monetarily and that she would be happy to review any potential conflicts in advance in the future. Mayor Severns thanked Councilmember Stucky for Chairing the LTAC. 5. MAYOR, COUNCIL & STAFF COMMENTS a. Mayor - Mayor Severns provided the following comments and updates: • Upcoming City Office Closures: City offices will be closed on Monday, December 26 in observance of Christmas Day and Monday, January 2, in observance of New Year’s Day. • Arterial Preservation Program Grant Awards: The City was notified of two grant awards totaling just over $1.3 million for upcoming projects. The first will fund pavement overlay work on West Whidbey Avenue between SW Jib Street and Oak Harbor Street and the second is for significant improvements to NE 7th Avenue near Ellis Street. Mayor Severns noted this is the first time the City had received a grant from the State’s Arterial Preservation Program. Special thanks to the City’s Public Works staff and Grant’s Administrator for this achievement! b. Councilmembers i. National League of Cities Conference 2023 The National League of Cities Conference will take place in Washington, D.C. March 26-28, 2023. The budget for this conference is for two members of Council to attend. Mayor Severns opened the item for Council discussion and possible action to determine which councilmembers will attend. Councilmembers Hoffmire, Woessner, Stucky and Mayor Pro Tem Hizon provided their respective ques- tions and comments. The City has budgeted for two members of Council to attend. Councilmember Stucky noted he would be willing to pay his own way to attend. Mayor Pro Tem Hizon noted she would not be opposed to amending the budget if three councilmembers wished to attend. Mayor Severns re- quested staff to look into whether the City could fund sending three councilmembers. Regular Meeting Minutes December 13, 2022 Page 3 of 8 6. Public Hearings & Meetings a. Ordinance No. 1962: Amendments to Oak Harbor Municipal Code Sections 8.05.050, 8.05.020, and 8.05.060 regarding existing buildings and sprinklers Development Services Director David Kuhl presented the proposed ordinance with input from Fire Chief Merrill and Deputy Fire Chief Buxton. They explained there were two items proposed for consideration. One relates to a change to the Oak Harbor Municipal Code Title 8 relating to the fire protection features in buildings. Section (8.05.050) and (8.05.060) would be amended to require sprinklers to be included in duplexes and townhomes. The second code section (8.05.020) involves updating the existing build- ings code to match the non-conforming code. The proposed changes were presented at the City Council workshop in August, and it was determined to allow staff to move forward. Consequently, a draft legislative version of the proposed code change and clean final version were presented for consideration. The Planning Commission approved the lan- guage in September. Mayor Severns opened the public hearing and invited those who wished to speak to do so. He confirmed the City had received no other comments from the public. Hearing no one with a desire to address the Council, the public hearing was closed. Councilmembers Evans, Woessner, Stucky, Hoffmire, Marshall and Mayor Pro Tem Hizon provided their respective questions and comments. The primary discussion was regarding the high cost of the instal- lation of the sprinkler systems and the resulting cost to the developers that would be passed on to buyers. Mayor Pro Tem Hizon stated she would be interested to see a cost study on the formalization of potential incentives before passing the ordinance. City Administrator Oborn noted Council could vote to pass one of the three proposed updates. Chief Merrill noted it was vital that the code in chapter 8 match the code for evaluation criteria and requested Council consider passing that portion: OHMC 8.05.020. Motion: Mayor Pro Tem Hizon moved to approve the amendment to Oak Harbor Municipal Code Section 8.05.020, updating the existing buildings code to match the non-conforming code. The motion was se- conded by Councilmember Stucky and passed unanimously. b. Ordinance No. 1966: Amending the 2022 Comprehensive Plan Principal Planner Kamak presented the amendments to the Comprehensive Plan and provided the fol- lowing background: The City Council approved the docket for the 2022 Comprehensive Plan Amendment on May 17, 2022. The 2022 docket included Housing Action Plan (HAP), Future Land Use Map changes, Joint Planning Area (JPA), Capital Improvements Plan (CIP), and the Active Transportation Plan (ATP). Principal Plan- ner Kamak provided a summary on the updates. Housing Action Plan: Staff is continuing to implement goals of the Housing Action Plan. Earlier this year the City adopted new density standards to promote housing diversity and opportunities. Staff are con- tinuing the effort with the SEPA thresholds. Staff will continue to work on implementing the HAP in 2023 looking into the Multifamily Family Tax Credit Program. Land Use Element Future Land Use Map: This year’s land use amendments are predominately an effort to clean up some inconsistencies and errors on the Future Land Use Map. Regular Meeting Minutes December 13, 2022 Page 4 of 8 Although most of the proposed changes are cleaning up errors from the 2016 Update, there are two properties that are being transitioned to a different land use category in an effort to provide redevelop- ment opportunities. These are the North Whidbey Fire District property on Heller Street (from Low Den- sity to Public Facilities), and the Mangat Properties on N Oak Harbor Road (from Planned Residential Estate to Industrial). The changes to these properties will provide long term options for redevelopment. Industrial: The amendment to this section of the Comprehensive Plan is to note the preference of col- lapsing the three zoning classifications, Planned Business Park (PBP), Planned Industrial Park (PIP), and Industrial (I), into one zoning district under the Industrial (I). This change is to reduce lengthy process that were required for PBP and PIP developments. The amended language for the Industrial l/Business Park land use category is intended to accommodate industrial uses, industrial parks, and business parks and other supporting uses that promote and diversify the economic opportunities in Oak Harbor. The industrial land use category can be implemented by one zoning district intended to accommodate a wide range of uses and reduced processes. The zoning districts in this land use category are: Industrial (I), Planned Industrial Park (PIP) and Planned Business Park (PBP). The language has been updated into the Land Use Element of the Proposed 2022 Comprehensive Plan. Joint Planning Area: Although not a Comprehensive Plan Amendment by itself, the discussion on the JPA or the UGA can have implication on the Comprehensive Plan and is therefore being tracked on the City Comprehensive Plan Docket. The City is continuing to make efforts to get the JPA/UGA discussions on the County’s Comprehensive Plan Docket since the County has the authority on Urban Growth Area. This item will continue to the 2023 Comprehensive Plan Docket. Capital Improvements Plan 2023-2028: The City amends the Capital Improvements Plan (CIP) annually to reflect the updated schedules and project costs. This year’s update starts with a new budget cycle so the first two years of the CIP project funding is approved with the budget. The remaining four years are considered planning years. Also of note, the City’s CIP includes all the transportation projects that are expected to receive funding from the Island Regional Transportation Planning Organization (IRTPO), and therefore it also serves as the City’s Transportation Improvement Plan (TIP). The various Fund tables are contained in Chapter 5 on the CIP. These are the tables that are updated every year to reflect project schedules and costs based on information we currently have. Active Transportation Plan: Staff has been working with WSDOT on a Local Agency Agreement to obli- gate the federal grant dollars received for this project through the IRTPO. This process was completed, and the city has been authorized to move ahead on this project. Staff will be initiating a process to hire consultants in 2022 to lead this effort. This item will stay on the 2022 Comprehensive Plan Docket. As noted above, some of the items will continue into the 2023 Comprehensive Plan Docket. The actions to consider for this year are: 1. Update the Land Use Element in the Comprehensive Plan 2. Update the Future Land Use Designation Map 3. Adopt the Capital Improvements Plan 2023-2028 Principal Planner Kamak also reviewed OHMC Section 18.15.080, which establishes the criteria to re- view annual amendments to the Comprehensive Plan were the criteria are applicable. Mayor Severns opened the public hearing and invited any who wished to speak. He confirmed the City had received no comments from the public. Hearing no one with a desire to address the Council, the public hearing was closed. Councilmembers Woessner, Stucky and Hoffmire provided their respective questions and comments. Councilmember Stucky noted it would be nice to have a recap on items recommended to Council by the Planning Commission. Principal Planner Kamak noted staff could include Planning Commission meeting minutes if Council would find that helpful. Councilmember Hoffmire suggested a member of Council Regular Meeting Minutes December 13, 2022 Page 5 of 8 could attend the Planning Commission meetings once a quarter and that a member of the Planning Commission could attend a Council meeting once per quarter. Motion: Councilmember Hoffmire moved to approve Ordinance No. 1966 and adopt the 2022 Compre- hensive Plan Amendments and the Six-Year Capital Improvement Plan. The motion was seconded by Councilmember Marshall and passed unanimously. 7. Ordinances & Resolutions a. Resolution 22-20: Amending Council Rules of Procedure to Include Update of Council Rules of Procedure and Council/Staff Guidelines City Attorney Hillary Evans provided background and summarized the proposed resolution. The City of Oak Harbor Council Rules of Procedure was adopted in 2004 and last updated in 2015. At the Council’s Annual Retreat on March 31, 2022, facilitator Julie Underwood prepared draft Council and Staff Guidelines based upon the expectations discussion for Council and Staff. The draft was presented to Council at the July 20, 2022 Council Workshop and discussed at the November 16 Council Workshop. Additionally, the recommendation was to amend Council Rules of Procedure from following Parliamen- tary Procedures to the more common and more familiar processes included in Roberts Rules of Order. Councilmember Hoffmire and Mayor Pro Tem Hizon provided their respective questions and comments. Motion: Mayor Pro Tem Hizon moved to approve Resolution 22-20, amending Council Rules of Proce- dure, and adopting Council and Staff Guidelines. Councilmember Marshall seconded the motion, which carried unanimously. b. Resolution 22-28: Amending City of Oak Harbor Master Fee Schedule – Utilities System Development Charges Finance Director David Goldman introduced Public Works Director Steve Schuller and Chris Gonzalez of the FCS group to review the System Development Charges (SDC’s) for sewer charges alternatives. The City Council, on March 23, 2022, entered into an agreement with FCS Group, Inc. (FCS) to conduct a utility rate and system development charge study. This City of Oak Harbor has four utilities which are accounted for in separate funds: Water, Sewer (also known as Wastewater), Solid Waste (components: Trash, Recycling, Dumpster, and Yard Waste), and Storm Drain. FCS analyzed financial and business data to develop/update: 1) rate revenue requirements and 2) System Development Charges (SDCs). FCS Group presented their initial findings to City Council at the August 24, 2022 Council Workshop. Additional discussion and direction took place at the September 28, 2022 and November 16, 2022 Coun- cil Workshops. Based on Council direction, staff has worked with FCS Group to develop an SDCs schedule that incor- porates the following: 5-year phase-in starting on June 1, 2023. Tiered residential rates for sewer by size of dwelling unit. Accessory Dwelling Units charged at lowest tier for sewer regardless of size. Staff recommended Option 3 due to the reduced impact on the lowest and middle (average) tiers and the reduced impact on development due to the 5-year phase-in. In keeping with current practice, staff recommends that the rate continue to be tied to and collected at the time the building permit is submitted to the City for review. Regular Meeting Minutes December 13, 2022 Page 6 of 8 Councilmembers Hoffmire, Evans, Stucky, Woessner, Marshall, and Mayor Pro Tem Hizon provided their respective questions and comments. Motion: Councilmember Evans moved for water system development to be phased in from 1 year to 5 years, seconded by Councilmember Hoffmire. Following discussion, the motion and second were withdrawn. Motion: Councilmember Hoffmire moved to adopt Resolution 22-28 amending Chapter 18.60 of Sched- ule A (Development Services Master Fee Schedule) for Option 3 of the Oak Harbor Master Fee Sched- ule, which will adopt and amend Utility System Development Charges for the City’s Water, Sewer, and Storm Drain utilities and water system development to be changed to be phased in from 1 year to phased in over 5 years, to take effect on June 1,2023. Mayor Pro Tem Hizon seconded the motion. The vote on the motion carried 4-2 with Mayor Por Tem Hizon and Councilmembers Hoffmire, Marshall and Woess- ner in favor and Councilmembers Evans and Stucky opposed. 8. Contract & Agreements None 9. Other Items for Consideration a. City Council 2023 Calendar Mayor Severns noted staff had reviewed the coming year and presents a calendar for 2023 Council meetings, taking into consideration holidays and other City and Council events. Each December, the City Council sets its meeting calendar for the following year. Staff has reviewed all dates to include conferences and holidays. The Council holds just one regular meeting and one work- shop meeting during the months of June and July each year, and this is reflected in the proposed 2023 Council calendar. This calendar is provided to the Whidbey News Times for publication. Motion: Hearing no discussion, Councilmember Hoffmire moved to approve the 2023 City Council Cal- endar. Councilmember Marshall seconded the motion which carried unanimously. 10. Reports & Discussion Items a. City Administrator’s Report City Administrator Oborn reviewed his monthly report. Highlighted items included: • Meeting with Oak Harbor School District Superintendent and Assistant Superintendent regarding the upcoming school bond projects including athletic field and transportation factifies future planning. • Department Directors meeting to review the Bright Ideas submitted by employees during the November All Hands meeting. • Legislative outreach - Coordinating efforts regarding the City’s objection to the Conservation Easement Acquisition in Oak Harbor RCO Grant Application #22-1662 (Bell’s Farm Expansion). The project was approved by the RCO on October 25 and is going to the State Legislature for funding. The City plans to continue objection through the legislative process. • Working with State legislators regarding assistance in identifying debt relief solutions to lessen the cost burden on our sewer utility rate payers. Regular Meeting Minutes December 13, 2022 Page 7 of 8  • Finance – Council approved the 2023-2024 Biennial Budget. Staff continues to work with the State on the annual audit. • Fire Department - With successful passage of the two Referendums by City voters, planning has started for the new fire station, increased staffing, and new equipment to be purchased. • Human Resources – Conducted Interviews for the Economic Development Coordinator position with hiring nearly complete. • Public Works – Surplus structures on City property - The 1045 Ireland Drive structure is now advertised for public auction to determine its value and whether the house can be repurposed at another location. The bid closing date is 1/4/23. The second structure at 945 E. Whidbey Avenue, will be demolished this month. This work will be performed inhouse with city staff. • Transportation Grants - The City has won two grant awards from the Washington State Trans- portation Improvement Board (TIB). One grant is for West Whidbey pavement overlay for $485,297 and the second is for major improvements to NE 7th Avenue for $837,185. This is the first time the City has received a grant from the State from the Arterial Preservation Program (APP) program. And the last time the City received a grant from the Urban Arterial Program (UAP) program was 2006. 11. Executive Session None. Mayor Severns noted this was the final City Council meeting of 2022. He took the opportunity to thank the Council, City staff and the citizens of Oak Harbor for a very productive year. He noted he especially appreciated the courtesy and civility shown in discussions. Mayor Severns wished all a wonderful holi- day. The next Council meeting will be January 3rd, 2023. Adjourn Motion: There being no further business, Councilmember Stucky moved to adjourn, seconded by Coun- cilmember Woessner. The motion was approved by a unanimous vote, therefore the meeting adjourned at 8:26 p.m. Certified by Julie Nester, City Clerk Regular Meeting Minutes December 13, 2022 Page 8 of 8