City Council

Oak Harbor City Council Workshop Meeting Minutes August 23, 2023 This was both a physical meeting location and a virtual meeting The meeting was viewable via YouTube www.youtube.com/cityofoakharbor and Facebook or could be viewed on Channel 10/HD 1090 following the meeting. Public Comments are not normally taken or included for Council Workshops, although the Council may allow or request participation. CALL TO ORDER Mayor Severns called the meeting to order at 2:00 p.m. ROLL CALL City Council Present: Staff Present: In-person or Videoconference Mayor Robert Severns City Administrator Blaine Oborn Mayor Pro Tem Tara Hizon Finance Director David Goldman Councilmember Beth Munns Public Works Director Steve Schuller Councilmember Jim Woessner Parks and Recreation Director Brian Smith Councilmember Bryan Stucky Human Resources Director Emma House Councilmember Shane Hoffmire Police Chief Kevin Dresker Councilmember Eric Marshall Police Captain Tony Slowik Councilmember Chris Wiegenstein Fire Chief Ray Merrill Harbormaster Chris Sublet Clean Water Facility Supervisor Jack Robinson Communications & IT Manager Sabrina Combs City Administrator Executive Assistant Macalle Finkle City Clerk Julie Nester Also in attendance: City Attorney Hillary Evans of Kenyon Disend, PLLC MAYOR Mayor Severns called the workshop to order and welcomed those in attendance. Mayor Severns acknowledged the great and sudden loss of the orca whale Tokitae and the work of the Sacred Sea organization and offered the City’s condolences to all involved. Mayor Severns announced that before beginning the agenda he wished to take a moment to recognize the 5-year work anniversary of our City Administrator, Blaine Oborn. He noted Blaine has Workshop Meeting Minutes August 23, 2023, Page | 1 been a valuable leader for the City of Oak Harbor and for the Administration team and asked him to come forward and be presented with his 5-year pin. a. Receipt of Outstanding Treatment Plant Award for 2022 Mayor Severns announced the City had received a well-deserved award from the Washington State Department of Ecology, accompanied by a letter, which he will read as follows: "The Washington State Department of Ecology would like to congratulate the City of Oak Harbor on receiving a 2022 Wastewater Treatment Plant Outstanding Performance Award for the staff’s continued high performance in the operation of your treatment plant (also known as the Clean Water Facility). Oak Harbor has a great record as one of the top municipal wastewater treatment plants in Washington based on effluent limits and overall environmental compliance. Ecology would like to commend the team for their perseverance, dedication, and award-winning efforts. It takes pronounced focus and teamwork to operate and maintain a treatment plant in top-running order. Please present the enclosed plaque to the staff at the City of Oak Harbor. Thank you for the excellent service you and your Public Works staff provide to your community and to the waters of Washington State." Mayor Severns asked Clean Water Facility Supervisor Jack Robinson and Public Works Director Steve Schuller to come forward to accept the award and thanked them for their service. PARKS AND RECREATION DEPARTMENT a. Marina Rate and Fees Update Harbormaster Chris Sublet explained the update today was to give staff and Council an opportunity to discuss the topic and determine which options they would prefer to have added to the September 19, 2023, City Council meeting. He noted this was a continuation from the June 28, 2023, City Council Workshop. At that meeting, Paul Sorenson from BST & Associates presented the findings of his Oak Harbor Marina Rate Study. Staff then presented and introduced four Oak Harbor Marina rate options. The Marina Advisory Committee (MAC) spent several months reviewing and discussing the marina rates in conjunction with the Marina Rate Study, which includes a survey of several Puget Sound marinas and compared the current Oak Harbor Marina rates to the average, median and 90 percentile prices of similar services in the surveyed marinas. The rate study noted that current rates are not sustainable and would not keep up with operational costs. The study revealed that the Oak Harbor Marina rates are: 32% - 42% less than the median prices 41% - 53% less than the average prices 75% - 102% less than the 90th percentile The biggest discrepancies are in the 50’ – 59’ open moorage categories where the current rates were at 50% - 102% less than the average, median, and 90th percentile prices. Based on the location, age of the marina and the fact that the marina is a City owned marina, BST & Associates recommends that the marina bring the rates up to the 2023 “median” price point. They also recommended a 5-year rate schedule. Staff recommends that the rates be brought up to the current 2023 median price point with a 3- year rate schedule. The 3-year rate schedule is based on the dredge bond being paid off in 3 years plus the current dredge and reconfiguration efforts that are underway (cost estimate is to be determined). Workshop Meeting Minutes August 23, 2023, Page | 2 Harbormaster Sublet provided a historical overview of the Marina rates from 2019 forward. He noted BST & Associates briefed the Marina Advisory Committee (MAC) at the April and May meetings on his findings. The MAC also discussed the rate study and a rate increase at the June MAC meeting. A motion was made at that meeting to recommend that the rates be increased as per the Rate Study, and it was seconded. The motion failed with a tied vote. The MAC also discussed this at a special meeting on June 14, 2023 during which they once again reviewed the BST & Associates proposal as well as new proposals from MAC members Bradley, Skubi, Jones. Mr. Skubi made a recommendation to adopt Mr. Bradley’s rate proposal and the Other Services Charges & Fees as per the BST recommendations and it was seconded and passed unanimously. Harbormaster sublet provided an overview and comparison of the BST and Bradley, Skubi, and Jones rate proposals, concentrating primarily on the staff’s recommended BST Plan and the MAC recommended Bradley Plan. BST & Associates Proposal: • Move all rates to the 2023 “Median” price point for the Puget Sound at the end of 3 years. • The percentage increases are based on the length of the boat. • The largest increases are in the 40’ and up size categories. • Maximizes the yearly moorage revenue. • Keeps the marina under the average Puget Sound moorage prices. • Brings all size categories up to the 2023 median Puget Sound moorage prices. Mr. Ryan Bradley Proposal • Spreads the increases out more evenly amongst all size categories. • Increases the small boats percentage increase and reduces the large boat percentage increases. • Does not fully maximize the yearly moorage revenue. • Increases the rates of the smaller boats which have higher vacancy rates. • Does not bring all size categories up to the median Puget Sound moorage prices. • May not be as fair and equitable since the smaller boats will be absorbing some of the large boat percentage increases. Harbormaster Sublet reiterated staff’s recommendation that the rates be brought up to the current 2023 median price point with a 3- year rate schedule. This will increase the reserves, which will reduce the amount of the bond that will be required and will ultimately reduce the dredge fee that each tenant will have to pay. With interest rates rising much of the dredge fee may go to interest not paying off the bond. Harbormaster Sublet explained the BST plan also allows time for accurate estimates for the dredge and reconfigure project and brings the marina pricing more in line with current Puget Sound “median” pricing trends while still offering an exceptional value. He noted the current 2x summer rate schedule for extended guest moorage will be discontinued as part of all of the proposed rate plans. Mayor Severns turned to Council for discussion and to determine which of the four options they would prefer to have added to an upcoming agenda for consideration. Councilmembers Munns, Stucky, Hoffmire, Marshall, and Mayor Pro Tem Hizon provided their respective questions and comments. Councilmembers Munns, Stucky, Marshall and Mayor Pro Tem Hizon voiced support for the proposed rate changes per the BST Associates study. Councilmembers Hoffmire, Munns and Stucky also noted they would like to allow time for the MAC to review and Workshop Meeting Minutes August 23, 2023, Page | 3 consider any other information regarding the proposed rate changes once again. Staff will review Council comments and determine when this will be brought back to Council for final consideration and action. Mr. Ken Hulett, Chair of the MAC, responded to questions from the Council. He stated he leaned towards the Bradly proposal, but noted there was some room in the middle between the BST and Bradly plans. Mayor Severns voiced his appreciation of the service of the MAC. He noted staff and members of the Council had included the subject of dredging with the Army Corps of Engineers during their visit to Washington, D.C, earlier this year. Staff will review Council comments and continue discussion with the MAC at their next meeting. HUMAN RESOURCES a. Compensation & Classification Study Update for Non-Represented Employees Human Resources Director House reported on the study, performed by Cabot Dow Associates (CDA), Inc. on February 21, 2023. The City last completed this type of study in 2017. This study included a review of each position's classification and job description to ensure Oak Harbor's positions were compared accurately when CDA conducted the survey of other comparable agencies. This study included comparisons of City-provided health benefit costs, paid leave, retirement and additional compensation items provided for the City to weigh its overall compensation package with a select market of agencies that perform similar functions to determine competitive position among similar employers. This analysis will provide information as to whether the City's salaries and benefits need to be adjusted so as to continue to attract and retain high-performing employees. This process is regulated by Oak Harbor Municipal Code (OHMC) 2.34.080 Compensation and OHMC 2.34.085 Health Benefits, as well as in the Oak Harbor Employee Policy Manual, Section 4.09 Salary Administration. Director House was joined by a representative of Cabot Dow in reviewing the process, methodology, and overall findings of the study and next steps, including a review of the final report from CDA, adjusting the salary schedule, providing a budget amendment, implementing the adjusted salary schedule, and finalizing position descriptions. Director House noted that in comparison to the last study in 2017, the results of the current study show the City is far more in-line with other municipalities of similar size and budget. Mayor Pro Tem Hizon and Councilmembers Hoffmire, Munns and Marshall provided their respective questions and comments. POLICE DEPARTMENT a. Police Department Opioid Presentation Police Captain Tony Slowick provided background information and reviewed the process for the allocation of funds, related to the opioid settlement and strategy for dispensing those funds. 2019 to 2021 Island County saw a 60% increase in fatal overdoses and non-fatal overdoses are generally under-reported statewide. 2022 data is not yet available. In 2022, the Washington Attorney General’s Office resolved lawsuit with companies found to have Workshop Meeting Minutes August 23, 2023, Page | 4 played a key role in fueling the opioid epidemic. • April 2022, the City Council authorized signing the One Washington MOU regarding opioid settlement, which made the City a direct recipient of funding. • September 2022, the City Council authorized signing the Allocation Agreement for Opioid Funds • January 2023, the City of Oak Harbor signed the MOU forming the North Sound Region Opioid Abatement Council The Settlement Agreement creates nine allocation regions throughout the State. Oak Harbor is a member of the North Sound Region, which includes Island, San Juan, Skagit, Snohomish, and Whatcom Counties. It requires that “All Opioid Funds, regardless of allocation, shall be utilized pursuant to the Approved Purposes … set forth in Exhibit “A” of the One Washington MOU. Oak Harbor is the only city in Island County to receive settlement funds. The settlement allocation is dispersed over a seventeen-year period, to 2038. Authorized uses include treatment, prevention, and other strategies. Oversight and auditing of the funding is by the North Sound Region Opioid Abatement Council (OAC). The City of Oak Harbor has one seat on the OAC. • 10% of annual settlement funds are withheld each year for potential admin expenses for OAC. • OAC is responsible for the Auditing & Reporting of settlement funds. • One WA MOU provides a grievance process through the OAC for any misuse of funds. Captain Slowik noted the OHPD will present a proposal for allocating opioid settlement funds at a future Council meeting. Councilmembers Munns and Hoffmire provided their respective questions and comments. ADMINISTRATION a. City Administrator’s Report City Administrator Oborn thanked Mayor Severns for the presentation of his five-year pin and thanked him for his leadership. He provided an overview and highlights from his monthly report, including legislative outreach, community support, economic development, communications, grant funding received from Island County and from the State of Washington Rural County Economic Development, Enterprise Resources Planning evaluations, and departmental reports from the Fire Department and Parks & Recreation. Councilmembers Stucky, Hoffmire, and Mayor Pro Tem Hizon provided their respective questions and comments, as did Mayor Severns, thanking City Administrator Oborn for the thoroughness of his report. CITY COUNCIL Mayor Severns called for any additional comments from the Council. There were no additional comments. ADJOURN Hearing no other discussions, Mayor Severns declared the workshop meeting adjourned at 3:52 p.m. Certified by Julie Nester, City Clerk Workshop Meeting Minutes August 23, 2023, Page | 5