City Council

Oak Harbor City Council Regular Meeting Minutes July 9, 2024 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 CALL TO ORDER Call To Order and Native Lands Acknowledgement - Mayor Wright called the meeting to order at 6:00 p.m. He included the acknowledgement that the meeting was being held on the ancestral lands of the Coast Salish people and paid respect to those past and present. Invocation – Pastor Kevin Scott, Seventh Day Adventist Church. Pledge of Allegiance – Led by Mayor Wright ROLL CALL City Council Present: Staff Present/Videoconference Mayor Ronnie Wright City Administrator Sabrina Combs Mayor Pro Tem Tara Hizon Deputy City Administrator David Goldman Councilmember Jim Woessner Development Services Director David Kuhl Councilmember Bryan Stucky Parks and Recreation Director Brian Smith Councilmember Shane Hoffmire Police Chief Tony Slowik Councilmember Eric Marshall Police Captain Kevin Barton Councilmember Christopher Wiegenstein Interim Fire Chief Gordon Olson Councilmember Barbara Armes City Engineer Alex Warner Senior Planner Ray Lindenburg Parks Supervisor Brandon Cable Recreation Manager Liz Lange Grants Administrator Wendy Horn Communications Officer Magi Aguilar Executive Services Coordinator Macalle Finkle City Clerk Julie Nester Also in attendance: City Attorney Hillary Evans of Kenyon Disend, PLLC EXCUSE ABSENT COUNCILMEMBERS Mayor Wright welcomed all in attendance. He noted Mayor Pro Tem Hizon was participating remotely and might have connectivity difficulties. He requested a motion for her to be excused if needed. Coun- cilmember Woessner moved to excuse Mayor Pro Tem Hizon, seconded by Councilmember Marshall. At this point, Mayor Pro Tem Hizon was able to successfully join the meeting and did not need to be excused. 1. APPROVAL OF AGENDA Mayor Wright requested changes to the agenda. Regular Meeting Minutes July 9, 2024 Page 1 of 17 Councilmember Hoffmire requested the moving of items 7.a. to ahead of item 6.b. Mayor Wright noted Staff had also requested to move item 7.a. Resolution 24-21 Authorizing the Mayor to Consolidate State Revolving Fund Loans and Refinance of the Commercial Bond for the Clean Water Facility to follow Item 6.a.Continuation of Public Hearing – Ordinance No. 1999: Sale of City Real Prop- erty. Hearing no other changes, Mayor Wright called for a motion to approve the agenda as amended. Motion: Councilmember Marshall moved to approve the agenda as amended, seconded by Coun- cilmember Wiegenstein. The motion carried unanimously. 2. PRESENTATIONS i. Proclamations – Parks & Recreation Month Parks and Recreation Director Brian Smith presented the information for the proclamation. At Mayor Wright’s request, Councilmember Marshall, who serves as the City Council liaison to the Oak Harbor Parks Commission, read the proclamation. i. Honors & Recognitions – Introduction of Police Captain Kevin Barton. Police Chief Slowik introduced Captain Barton, who was sworn in on July 1, 2024. Mayor Wright wel- comed Captain Barton who thanked the City for the opportunity to serve and noted he was excited to be a part of this team and the Police Department’s partnerships with the City. ii. Award Presentations - by Police, EMS, and Dispatch First Responders for drug over- dose incident on May 10th, 2024 Police Chief Slowick and Interim Fire Chief Olson were joined by representatives of Whidbey Health Emergency Medical Services and I-COM in presenting the following awards: Lifesaving Award: Jesse Caravan - OHPD Kimberli May – ICOM Citizen Commendation: Timothy Hazelo Letter of Recommendation: Shantel Ricci - OHPD Paul Schroer - OHFD Steve McCalmont - OHFD Henry Booth - OHFD Andrew Carroll - OHFD Frank Sy – OHFD Rich King – WH EMS Frank Valencic – WH EMS Sarah Reinstra-ICOM Lyndsey Kahuhu-ICOM Mayor Wright was joined by the Council in thanking all receiving recognition. Regular Meeting Minutes July 9, 2024 Page 2 of 17  b. Community Presentations i. Oak Harbor Music Festival – Cynthia Mason Oak Harbor Music Festival Board President Cynthia Mason thanked the Mayor, City Council and City of Oak Harbor for their support of the Festival. She acknowledged board members Margaret Liver- more, Larry Mason, River Powers, Bill Walker, Rachel Spears, Skip Grehan and Lynn Goebel. She thanked the many volunteers that make the Festival a success. Ms. Mason provided a short video of the 2023 Festival. Festival proceeds fund the Quarter Note program, providing instruments for 5th and 6th grade students and provide more than $100,000 in scholarships. ii. Oak Harbor Garry Oak Society – Kyle Renninger Oak Harbor Garry Oak Society Board Member and Director of Special Projects, Kyle Renninger pro- vided a historical slide show presentation including photos from the Island County Historical Society and Whidbey Island Conservation District of the area of “Town Beach’ including Windjammer Park and Hal Ramaley Park. Mr. Renninger noted a proposed Hilton Hotel development and its potential im- pacts to Hal Ramaley Park and the Imagine Permaculture Food Forest. He suggested the acquisition of other property in the vicinity to use for parking or creation of alternate parking on Bayshore Drive. iii. City of Oak Harbor Parks & Recreation Advisory Commission – Chair Carrie Stucky Parks and Recreation Advisory Commission Chair Carrie Stucky introduced Commission Vice-Chair Eric Dipzinski, Commissioner Tom Jones, and Student Representative Nolan Saltonstall, who were in attendance. She reported on accomplishments and recommendations of the Commission, including Accomplished Parks & Recreation projects and goals: •Shipwreck Shores improvements •Activity Guide •Expanded Recreational Programming •Activating underutilized park space •Participation in city events •Expanded commission from 5 to 7 members •Creation of subcommittees Current Projects: •Pickleball Courts •Freedom Park walking trails and disc golf courses •Baseball Field improvements •Adaptive Playground •Increased Communication •Collaboration with local groups Future Priorities & Goals: •Create Parks & Recreation Master Plan •Indoor Recreational Facility •Additional recreation programs for all ages •Updates to older playground equipment •Increasing amenities for our community Chair Stucky also reviewed the Commission’s recommendation in regard to proposed Ordinance No. 1999, which would remove the requirement of an election for the sale of park property, while Regular Meeting Minutes July 9, 2024 Page 3 of 17 maintaining the requirement for a public hearing. She noted several parks are restricted and could not be sold via a Cit Council decision, including: Windjammer Park Flintstone Park Freund Marsh Smith Park Catalina Park Ruth Cohen Memorial Park Chair Stucky noted the following considerations reviewed by the Parks and Recreation Commission regarding the current ordinance in place: •Limits to city council’s ability to function efficiently. •Costs of elections (finances and time spent). •Pool of voters in election is limited to residents living within city limits only. •Public hearing allows for public input from entire community, including those living outside city limits. She explained the City must notify the community of public hearing at least 10 days prior to hearing. Thorough communication regarding public hearings ensures all residents have the opportunity to make their voices heard. The recommendation of the Oak Harbor Parks and Recreation Advisory Commission was for Council approval of proposed Ordinance No. 1999. Councilmember Hoffmire noted it was encouraging that Windjammer Park was deed restricted. Chair Stucky observed that Windjammer Park as currently configured is grant use restricted and cannot be sold. Councilmember Stucky noted the City attorney had commented that the City’s current ordinance was pretty rare. He inquired if Island County were able to sell park property without and election. Chair Stucky noted the County is only required to hold a public hearing and not an election. 3. CITIZEN COMMENT PERIOD Mayor Wright noted citizens may comment on Consent Agenda items or subjects of interest not listed on the agenda at this time and that citizens would 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. 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 a great many new public comments since our last regular meeting. Those pertaining to the public hearing for proposed Ordinance No. 1999 were shown during that public hearing. The others are displayed as received from: 1. Jennifer Scoggins of Oak Harbor regarding new constructions and suggesting the City encour- age a well-known chain such as Olive Garden top locate here. 2. Kevin Foy of Oak Harbor regarding the use of gas powered tools and suggesting such tools be banned in favor of electric equipment. 3. Lee Drost of Freeland suggesting the City do away with explosive fire works as a fire danger and a hardship for resident’s pets, livestock and wildlife, and using drone displays instead. Mayor Wright opened the floor for public comment on items not on the agenda or items on the consent agenda. 1. Nolan Saltonstall of Oak Harbor and a member of the Whidbey Royalty reported on their service project – a community recreation center. He noted the Request for Proposals for a Feasibility Regular Meeting Minutes July 9, 2024 Page 4 of 17  Study was out now. He thanked the Parks and Recreation Commission and noted the importance to keep engaged about the project. An online and hardcopy petition will be circulated for com- munity input in the coming months. 2. Karen Mulhern-Parks of Island County noted a number of deer strikes outside of the city limits and the need for larger deer awareness signs going from Crescent Harbor towards Polnell Shores and Reservation Road to encourage people to slow down. Hearing no one with a desire to address the Council, on non-public hearing items, the public comment period was closed. 4. CONSENT AGENDA Consent Items a. Approval of Minutes: City Council Meeting of June 4, 2024, City Council Special Meeting of June 26, 2024 and City Council Workshop of June 26, 2024 b. Approval of Payroll and Accounts Payable Vouchers c. Grant Application for TIB Funding d. Island County LTAC Grant Application Approval – Whidbey Island Marathon e. Kroger Opioid Settlement Participation Agreement f. Professional Services Agreement with Periscope Legal for Indigent Defense (Public De- fender) Services g. Amendment to Professional Services Agreement: RMA Group, Inc. dba Geo Test Services, Inc. for Materials Testing Services Mayor Wright called for any changes to the consent agenda. Councilmember Woessner requested to remove item f. Professional Services Agreement with Periscope Legal for Indigent Defense Services. Mayor Wright noted the other consent agenda items were approved as presented. Councilmember Woessner requested additional information about the Request for Proposals (RFP) pro- cess and costs. City Administrator Combs reviewed the process and timeline for the advertising for the RFP. Periscope Legal has served as the interim provider following Island Defense’s notification to the City that they would not renew their contract. Periscope Legal was the only submittal received for the RFP. Councilmember Wiegenstein reiterated that the City is always examining the costs of services. Chief of Police Slowik noted all municipal cases are held at the district court here in Oak Harbor. Motion: Councilmember Woessner moved to approve consent item f. Professional Services Agreement with Periscope Legal for Indigent Defense Services., seconded by Councilmember Marshall. The vote on the motion passed unanimously. 5. MAYOR, COUNCIL & STAFF COMMENTS a. Mayor’s Comments Mayor Wright provided the following comments: Public safety is my priority: This past week, an accident at the Carnival on the evening of July 3rd ne- cessitated a response from police and fire services and the closure of amusement rides pending addi- tional inspections. Thank you to our staff and especially to Building Official Brian Colbert for coming in at 7:00 a.m. on July 4th. And thank you to our City Attorney for her swift response on a holiday to address Regular Meeting Minutes July 9, 2024 Page 5 of 17 the incident. The City can issue and can revoke a special event permit. However, the management of this event and communication with the vendors was the responsibility of the special event applicant – the Greater Oak Harbor Chamber of Commerce, who contracted for their services. This administration believes the safety of our public completely outweighs any other considerations. 4th of July: It was my pleasure to participate in the 4th of July parade and see the large participation of our community and by our City Council. Thank you to the Chamber of Commerce for organizing the parade and fireworks. Thank you as well to our staff and Councilmembers who participated at the City’s information booth over the weekend. Swearing in ceremony: I was honored to attend the swearing in ceremony at the Oak Harbor Police Department for Police Captain Barton and Police Officer Yuan. Thank you for joining our police depart- ment and serving our community. Fire Chief Recruitment: The City hosted two highly qualified finalists this past week, I appreciate our leadership team and members of Council for meeting with them. Thank you as well to Chamber of Commerce Steve Bristow and School Board Member Nikki Tesch for participating in the interview panel. I look forward to filling this vital position very soon. Oak Harbor Community Blood Drive: Our Fire Station #81 is hosting the Oak Harbor Community Blood Drive this Thursday, July 11th from 10:00 a.m. to 4:00 p.m. Appointments are required. Call Bloodworks Northwest at 800-398-7888. WAIF begins Licensing on August 1st: The City turns over the administration of animal licensing to the Whidbey Animals Improvement Foundation beginning August 1st. Please see WAIF at their website or phone: (360) 678-8900 Congratulations to Councilmember Marshall: Councilmember Marshall has received his Advanced Cer- tificate of Municipal Leadership from the Association of Washington Cities. The Advanced Certificate of Municipal Leadership recognizes mayors and councilmembers who continue to strive for excellence by attending conferences and trainings, serving their community, and further developing leadership skills. City officials receive the Advanced Certificate of Municipal Leadership after earning an additional 30 CML credits – including at least one training in the diversity, equity, inclusion, and belonging competency area – and demonstrating community service. Congratulations on this achievement! Staff Kudos: Thanks to the cooperation between our Public Works, Parks and Recreation and Develop- ment Services departments and especially Steve Beebe, Talley Hucke, and Bill Leuthe in the clean up of an overgrown abandoned property. Great teamwork! Thank you to Finance Manager Chas Webster for her assistance to those applying for and renewing their business licensing. Her thorough and thoughtful approach is greatly appreciated, as is the assis- tance offered by our front desk and utilities departments. Still Hiring: The City has openings for employment in several areas, including seasonal positions, evi- dence information specialist, bus driver, streets, and more. See our website for a complete listing. Local Events: There are several terrific special events happening in our area, Including Hydros for He- roes this weekend. Events were displayed on the screen. b. Councilmembers Councilmembers Woessner, Hoffmire, Armes, and Marshall provided their respective comments. Regular Meeting Minutes July 9, 2024 Page 6 of 17 Councilmember Woessner thanked City staff and Carrie Stucky for parade support and thanked the Chamber of Commerce for a wonderful parade. He encouraged all to attend the Hydros for Heroes event. Councilmember Hoffmire noted a lot of cities run 4th of July events themselves and thanked the Chamber of Commerce and their volunteers for their event management. Councilmember Armes thanked the Chamber and also City staff for arranging for the information booth, which provided a great opportunity for meeting with the community. Councilmember Marshall noted it had been a challenging weekend and voiced concerns over discus- sions which included councilmembers on social media that were not respectful and did not reflect the way in which councilmembers should conduct themselves. He noted there had been disfunction on the Council in the past but felt during the last two years this had been improving. He praised the work of the Chamber and City staff. Councilmember Armes agreed. She noted the councilmembers might not always all agree but do come to a consensus and that the City has done a lot in a short time. 6. PUBLIC HEARINGS & MEETINGS a. Continuation of Public Hearing – Ordinance No. 1999: Sale of City Real Property Mayor Wright noted this was a continuation of the public hearing from May 21, 2024. He introduced Senior Planner Ray Lindenburg to present background and other information. Senior Planner Lindenburg explained this was introduced as a stand-alone ordinance revision designed to streamline the process of transfer of park property. In reviewing the current ordinance, the City attor- ney indicated it contained an unusual requirement for an election which was outside the norm for other cities in Washington. This legal review came after a pre-application was submitted for private property adjacent to Hal Ramaley Park. This was the second round of pre-application discussion for this site. The applicant had drafted a site plan that included a land swap between the properties for a small portion of the park, straightening boundary lines to accommodate parking for the project. The site plan included a renovated Hal Ramaley Park, paid for by the developer, and kept and maintained by the City. The proposed ordinance revision item was introduced to the City Council on May 21, 2024, with a public hearing held at that meeting. The public was able to comment on the proposal and the topic of the specific project was brought up. Written comments were also received and displayed. At this meeting, staff relayed concerns about the election requirement contained in the current ordinance and the Council discussed the item. The intent of the proposed ordinance is not to sell city parks but to have some leeway on a 1 for 1 standard or a 1 for 2 standard to insure there is always a public benefit. Due to number of public comments and Council concerns, Staff requested a continuation of the item to further address public concerns and Council discussion regarding several topics: Removal of election requirement Donations and deed statements Potential of having a 1 for 1 standard for any park land disposal Environmental standards Park land per capita concerns Relocation/expansion of food forest Regular Meeting Minutes July 9, 2024 Page 7 of 17 Staff requested a continuation of the item and will present options at the Council Workshop of July 24, 2024. Staff requests the public hearing on the item be continued to the Council’s August 13, 2024 meet- ing and staff will present a draft ordinance based on discussion from the July 24th workshop. Following the staff presentation, Mayor Wright continued the public hearing. He noted the City had re- ceived many public comments regarding this proposed ordinance. Those comments sent in advance of this meeting were displayed on screen. They were divided into comments received from those living outside the city limits and those living inside the city limits. 1. Kevin Orme of Seattle, opposing the removal of protections for parks. 2. Elizabeth Smith of Anacortes, opposing removal of citizen participation through election. 3. Dalva Church of Coupeville, opposing removal of voting by the public 4. Charlotte Ginn of Coupeville, opposing the code change to eliminate the public’s election to sell public parks. 5. Marnie Jackson, Executive Director of Whidbey Environmental Action Network of Langley on whether time would be allowed for a SEPA threshold determination and, if warranted, an Envi- ronmental Impact Statement. 6. Merri Huffine of Island County, opposing removal of the election element, voicing a need to main- tain access to the public vegetable garden, and wanting some guaranteed land trade or replace- ment property. 7. Rebecca Collins of Freeland, opposing the removal of public votes on the use or removal of parks. 8. Erica Eden of Freeland, commented Save Oak Harbor’s Parks. 9. Ginny Kuehn of Langley, opposing removal of an election provision for disposing of public park- land. 10. Rebecca White of Freeland, opposing removal of public vote to get rid of park land. 11. Kim Kelzer of Freeland, opposing removal of a vote and requesting the City keep Hal Ramaley Park. 12. Laura Medbury of Island County, opposing removal of the city code requirement for public elec- tion before selling or disposing of city park property. 13. Robert Kenny and Julia Glover of Clinton, opposing removing an election provision to allow the public to vote if Oak Harbor considers selling or disposing of public parkland. 14. Nancy Schmidt of Island County, on the importance of the right to vote on what happens to parkland. 15. George Bullis of Coupeville, opposing removal of a vote on the sale of city parks property. 16. Duncan Chalfant of Island County, favoring keeping the ordinance requiring a vote of the people to disperse City park property the way it is currently. 17. Brian L. Giles of Island County, regarding the removal of a 330-year-old tree, a need for trust in government and letting the citizens vote. 18. Fred C. Smyth of Island County, opposing the proposed code change and stating the public’s right to decide the status and use of their parklands should be maintained. 19. Marilyn Bryant of Coupeville, not wanting a Hilton Hotel built on what is now parkland and main- taining the vote of the people. 20. Bret Medbury of Island County, opposing removal of the public vote requirement to sell park space, 21. Karen Mulhern Parks of Island County, on the negative impact of decreasing open spaces and requesting the tax payers decide what alternatives to development there are. 22. Bill Bloch of Island County, opposing removal of the election requirement for parkland. 23. Didi Bloch of Island County, opposing disbursing of any pal land without a vote of the people. 24. Marshall F. Goldberg, M.D. of Island County, opposing amending Oak Harbor Municipal Code 1.20.010 (1). Regular Meeting Minutes July 9, 2024 Page 8 of 17  25. Amanda Bullis, Engagement Director, Whidbey Environmental Action Network of Langley, op- posing removal of the election provision from Oak Harbor Ordinance 1999 and whether the Mayor and city council are aware and in compliance with the SEPA review process. 26. Steve Erickson, Litigation Coordinator, Whidbey Environmental Action Network of Langley, urg- ing the Oak Harbor City Council to make any decisions regarding City Parks generally or specif- ically as part of a larger planning process the City is obligated to perform under the Growth Management Act. 27. Jeffrey Bauer of Oak Harbor, opposing the proposed action to remove citizen approval via elec- tion requirement for disposing or selling of city park property. 28. Laurie MacKenzie of Oak Harbor, requesting clarification in the code that parks shall be main- tained except by approval of the people with no exceptions. 29. Teresa Gillespie of Oak Harbor, opposing the proposal to remove the code that requires a public vote before the city can sell of dispose of a public park. 30. Kathleen Quinn of Oak Harbor, in favor of there being a requirement for a public vote on the sale of park land. 31. River Crandall of Oak Harbor, opposing any change to the current code and maintaining a public vote. 32. Robyn Wind of Oak Harbor, opposing the proposed change and against the sale of parks without a vote of the people. 33. Karen Thornton of Oak Harbor, requesting the people of Oak Harbor continue to maintain a vote in the sale or disposition of city park property. 34. Georgia Gardner of Oak Harbor, opposing any sale of city property without submitting it to a public vote. 35. Carolyn and Richard Bischoff of Oak Harbor, opposing the proposal to remove a code require- ment that would impact the City’s green spaces and noting a Hilton Hotel in the downtown area would substantially impact the ambiance and character for the city. 36. Nancy Wezeman of Oak Harbor, stating democracy is endangered if civil offices can change policy without the public permission by vote as currently mandated, concern for gardens occu- pying the property, and belief that hotels should be along hiway 20. 37. Matt Wood of Oak Harbor, opposing changes to the Public Park Code which would allow the sale of public lands to facilitate economic development without public oversight. 38. Anne Bostrom Sullivan of Oak Harbor, opposing removal of parks without a public vote and noting the value of parks and open spaces to a community. 39. Teresa Addison of Oak Harbor, concerned about the removal of the election provision in the city code and its impact on the voting rights of the community. Public parkland should be preserved for the community and its future determined through a public voting process. 40. Belinda Hawkins of Oak Harbor, objecting to the proposal to convert any portion of Hal Ramaley Park to parking spaces for a hotel. Maintain the ordinance that requires a vote of the people to convert parks for other uses. 41. Kathy Harbour of Oak Harbor, opposing the removal or change of the election provision code 1.30.010 42. Gregg Lanza of Oak Harbor, supporting the Hilton Hotel project and the changes to improve economic development in downtown. 43. Megan Varner-Duckett of Oak Harbor, a small business owner, supporting the addition of a Hilton hotel in the downtown Oak Harbor area. Hoping folks in our community choose to embrace change and growth. 44. Erin Cook of Oak Harbor, voicing support for a Hilton hotel downtown and not wanting to let the attitude of the few affect the good of the many. 45. Dina Koehn of Oak Harbor, a downtown business owner leaning in favor of the Hilton hotel downtown. 46. Peggy Shashy of Oak Harbor, President of Garry Oak Gallery, excited to hear about a Hilton Hotel and Conference Center and noting the park has been in disarray for years and is used by the local homeless community. Regular Meeting Minutes July 9, 2024 Page 9 of 17  47. Denise Marion of Oak Harbor, preserving the provision for a public vote on dispersing or sale of a public park and the benefits of green space. Mayor Wright asked City Clerk Nester to call on those who signed up to speak in person. He noted if any individual’s public comment was submitted in advance and displayed in the meeting already, that they please not comment a second time. 1. Marshall Goldberg, M.D. of Island County, rose to read his statement which had already been submitted and displayed in this meeting. He relinquished the floor to the next speaker. 2. Netsah Zylinsky of Coupeville, a member of the Imagine Garden group, noted they exist because of the Hal Ramaley Park and have over 100 trees providing food. The group would like to see the City work with them, noting if the Hilton was a really green hotel they could use or develop the garden further. 3. Gray Giordan of Oak Harbor, spoke in opposition to any change of the existing ordinance and noted it was forward thinking to keep it in place. He noted those who utilize the bus stop at that location also utilize the food forest. 4. Kathy Chalfant of Island County, speaking as the Leadership Chair for the Oak Harbor Garden Club reported the Club had voted unanimously that the provision for a vote remain in place. She inquired about the cost of placing the issue on the ballot, believing it was less than the estimated amount reported. She encouraged the City take time to inform the public, hold an open house, and consider the comments received. 5. Kyle Renninger of Coupeville, remarked on the number of people providing comments from up and down Whidbey Island and that the City would still retain the flexibility to sell park property if this was approved by the voters. He was troubled by the limiting of public comments to once per meeting and voiced concern over what he saw as some comments being less valued than others. He thanked the Parks and Recreation Commission for their report but found their vote out of step. 6. Laura Renninger of Oak Harbor stated she was note against the Hilton but was opposed to the City’s consideration to trade part of a park to a developer in exchange for parking. She noted information from the 2023 Comprehensive Plan and a list of changes she opposed. She believed the current ordinance should remain as is. 7. Mrs. Harbor read a statement of behalf of Patty Cohen who had signed up to speak but had to leave the meeting. Her statement listed examples of community values and noted citizens should be included in planning processes. 8. Lee Roof of Island County, noted he had known Hal Ramaley, who he believed would oppose the ordinance change, noting the 1997 ordinance was created because of another attempt to remove a park. 9. Margaret Livermore of Oak Harbor identified herself as the Executive Director of the Mainstreet Association. She noted the pulse on businesses downtown that favor the hotel development. 10. Nolan Saltonstall of Oak Harbor clarified that this comment was only in regard to the proposed Ordinance No. 1999 and the matter of the requirement for a public hearing versus a public hear- ing and election. He noted elections are not always the best way to make a determination as people don’t necessarily vote. He found a public hearing was very direct and noted his support of Ordinance No. 1999. 11. James P. Morrow of Oak Harbor observed Senior Planner Lindenburg’s presentation showed additional space could be traded. He noted costs of this sort of investment. To be considered were having more trees but also homelessness and unemployment. He noted the City has had trouble raising funding for the police and voiced his support of the Police Department. He stated his belief that the Hilton was the right direction and encouraged the Council adopt a plan to get things moving. 12. Kim Schaaf of Oak Harbor noted there wasn’t a question of people wanting a Hilton, but not in the proposed location. She stated people do use the park and do use the food the garden pro- vides, and the needs of the homeless. She believed the people should have a vote. She stated Regular Meeting Minutes July 9, 2024 Page 10 of 17  she did not understand the SEPA comments but would want to see that done. She believed more could be done to direct people downtown and wanted to see the occupancy numbers from cur- rent hotels. Hearing no additional public comments, Mayor Wright closed comments for this meeting and continued the public hearing to August 13th. Councilmembers Woessner, Hoffmire, Wiegenstein, Marshall, Armes, Stucky and Mayor Pro Tem Hizon provided their respective questions and comments. Staff will provide a presentation to the Council and answer additional Council questions at the July 24th workshop. BREAK – Mayor Wright called for a fifteen-minute break at 9:05 p.m. The meeting was resumed at 9:20 p.m. 7. ORDINANCES & RESOLUTIONS a. Resolution 24-21: Authorizing the Mayor to Consolidate State Revolving Fund Loans and Refinance of the Commercial Bond for the Clean Water Facility Deputy City Administrator David Goldman presented background information for the item. He explained at the March 31, 2022 City Council Retreat, an idea was brought forth to explore the possibility of ob- taining debt relief from the State regarding State Revolving Loan (SRF) debt that was taken out to fund the Clean Water Facility (CWF). At the April 26, 2023 City Council Workshop, options were brought forward to refund the SRF loans. City Council declined to pursue this option and directed staff to continue to pursue more advantageous savings. Staff followed up with the Department of Ecology (DOE) and the State Legislature. Partly as a result of staff’s efforts, the DOE notified the City that they would be able to refinance the private bond ($25.7M) in addition to the SRF Loans at favorable rates. Deputy City Administrator Goldman reviewed the current Clean Water Facility debt as follows: • Five SRF loans were provided by the State to fund the CWF ($103.5 million initial; $76.7 million remaining). - DOE Funding availability estimated late 2024. - First payment January 2025. • One municipal bond was taken out ($25.7 million initial; $25.7 million remaining). - Bond debt is interest only until 2037-2038 to coincide with the retirement of the SRF loans. - Not redeemable until December 1, 2025. - DOE Funding availability estimated summer of 2027. - First payment July 2027. Deputy City Administrator Goldman reviewed the potential debt restructuring: • SRF Loan General Terms: - Extend payback period 11 years from 2038 to 2049. - Interest rate of 1.9% (current loans weighted average = 1.65%). - First Payment January 30, 2025. • Private Bond General Terms: - Extend payback period 3 years from 2046 to 2049. - Interest rate of 1.4% (current loans weighted average = 3.43%). - First Payment July 31, 2027. • Lifetime savings over 25 years = $2,026,216 Regular Meeting Minutes July 9, 2024 Page 11 of 17 Deputy City Administrator Goldman reviewed the effect on utility taxes: • Utility Taxes are one of four major pillars supporting General Fund. • Reducing sewer rates two years ago resulted in recurring revenue loss of $20,000. • Reducing sewer rates by $22.81 would result in recurring revenue loss of $145,000. In order to keep the General Fund whole, utility tax rates would need to be increased. Analysis with Utility Tax: • Overall Monthly Average Increase = $0.36, Annual = $4.34 • Using Net Present Value, Average Annual Savings = $33.03 • Assuming sewer rates are decreased and then increased per Table 10 in the Agenda bill. Initial reduction would be $21.70 ($22.81 rate reduction plus $1.11 utility tax increase). • Savings changes to an increase, but still constitutes a savings using Net Present Value. This provides for an overall savings of $16 per month for the average residential bill and brings the utility tax adjustment to be more in line with state averages. Mayor Wright confirmed no public comments had been received. He requested any additional public comments from those gathered. Hearing none, he called upon the Council for their questions and com- ments Councilmembers Hoffmire, Woessner, and Marshall provided their respective questions and comments. Motion: Councilmember Marshall moved to approve Resolution 24-21, authorizing the Mayor to execute all documents necessary to restructure or refinance the current Clean Water Facility with the Department of Ecology to reduce the annual debt burden on its utility customers. Councilmember Stucky seconded the motion, which passed by a vote of 6-1 with Councilmember Woessner opposed. 6. PUBLIC HEARINGS & MEETINGS, CONTINUED b. Ordinance No. 2003: Establishing Utility Tax Rates for Water, Wastewater, Solid Waste, and Storm Drain Utilities c. Ordinance No. 2004: Establishing the Utility Rate for the Wastewater Utility Deputy City Administrator David Goldman presented the items. At the May 22, 2024 and June 26, 2024 City Council Workshops, Deputy City Administrator Goldman presented a new option for restructuring Clean Water Facility debt. City Council members expressed an interest in moving forward with this new option. The lifetime savings over 25 years = $2,026,216. The effect on utility taxes: • Utility Taxes are one of four major pillars that can support General Fund activities. • Reducing sewer rates two years ago resulted in recurring revenue loss of $20,000. • Reducing sewer rates by $22.81 would result in recurring revenue loss of $145,000. As explained in the prior item, to keep the General Fund whole, utility tax rates would need to be in- creased. Utility Taxes to Fund City Needs: • Indigent Defense - $215,000 per year. (City Council contract approval March 27, 2024). • Police Department Staffing - $625,000 per year (initial year). • Cyber Security Administrator (CJIS Compliance) - $150,000 per year (initial year). • Potentially other items listed in backup documents. Regular Meeting Minutes July 9, 2024 Page 12 of 17 The overall 2025 savings is estimated at $16.00 per month for the average residential sewer utility bill (Rate plus Tax). This would take effect on January 1, 2025. Mayor Wright opened the public hearing. He confirmed no public comments have been received and requested any additional public comments from those gathered. Hearing none, he closed the public hearing and called on the Council for their comments. Councilmembers Woessner, Hoffmire, and Stucky provided their respective questions and comments. Motion: Councilmember Marshall moved to adopt Ordinance No. 2003, related to utility tax and tax rates. Councilmember Armes seconded the motion, which passed unanimously. c. Ordinance No, 2004: Establishing the Utility Rate for the Wastewater Utility As noted, this item was presented in conjunction with Ordinance No. 2003 by Deputy City Administrator David Goldman. Mayor Wright opened the public hearing. He confirmed no public comments have been received and requested any additional public comments from those gathered. Hearing none, he closed the public hearing and called on the Council for their comments. There were no additional comments from the Council. Motion: Councilmember Marshall moved to adopt Ordinance No. 2004, establishing rated for wastewater services. Councilmember Wiegenstein seconded the motion, which passed unanimously. d. Ordinance No. 2005: Budget Amendment No. 7 to the 2023-2024 Biennial Budget Deputy City Administrator David Goldman presented the item. He explained this was mainly a mid-year true-up budget amendment to take into account City Council actions and annual grants that have oc- curred year to date. 2024 Budget Amendments were as follows: Previous City Council Approved Items: • $33,240 for secured grant funded urban and community forestry management plan activities. • $93,000 for replacement woodchips in City parks. • $200,000 for secured grant funded State mandated climate change and comprehensive plan update. • $80,000 for the Parks Recreation Open Space Plan. • $200,000 for secured grant funded environmental study and cleanup for Pioneer Way properties. • $1,328,100 for primarily unsecured grant funded pickleball courts. • $85,000 for traffic calming. • $362,000 for Phase 2 of the Marina Dredging project. • $300,000 to remove allocations for the reuse effluent irrigation system project and return funds to the General Fund. • $10,000 for the purchase of the Song of the Salish Sea artwork. • $75,900 for the creation of a City Arts Plan. • $54,500 for Marina dock emergency electrical repair. • $390,000 for Ault Field Pump Station VFD Replacement project. New Items included: • $16,000 for grant funded Police body worn cameras. Regular Meeting Minutes July 9, 2024 Page 13 of 17  • $50,000 return of excess contributions to the Replacement Fund. • $66,000 for 1 Cybersecurity Analyst mandated by Criminal Justice Information Services (CJIS). • $14,600 for workload adjustment for City Clerk. Wage and Salary Schedule / Compensation Plan Summary: • Mayor / Exec. Admin – 1.2 FTE Increase. • Finance – No FTE increase. • Development Services – No FTE Increase. • Fire – 0.5 FTE decrease. • Parks & Recreation – 1.0 FTE Increase. Total = 1.7 FTE Increase. Deputy City Administrator Goldman also provided a fund balance overview and budgeted ending fund balance summary. Mayor Wright opened the public hearing. He confirmed no comments had been received on this item. He called for comments from those in attendance and hearing none, he closed the public hearing and called for Council comments. Councilmembers Hoffmire and Marshall provided their respective comments. Motion: Councilmember Woessner moved to adopt Ordinance No. 2005: Budget Amendment No. 7 to the 2023-2024 Biennial Budget; adopting an updated wage and salary schedule and plan of classifica- tion. Councilmember Hoffmire seconded the motion, which passed unanimously. 8. CONTRACT & AGREEMENTS a. Amendment No. 1 to Professional Services Agreement with Carletti Architects for Fire Station #82 Deputy City Administrator Goldman introduced Peter Carletti, who was in attendance virtually. Carletti Architects has the contract for Engineering and Design Services for the new fire station. The contract dates are April 4, 2023 through December 31, 2024. The amount spent through June 5, 2024 equals $265, 917.49. Deputy City Administrator Goldman and Mr. Carletti reviewed four contract amendments that Carletti Architects are seeking: 1. Increase from $402,365 to $440,000 (rounded) to fund “Additional Services” beyond outlined tasks. Interest earnings on bond proceeds more than covers this. 2. Extend expiration through December 31, 2025. 3. Adjust architectural services hourly rates per contract. Title Original Add. Ser- Requested Add. Requested Increase Percentage In- vices Services in crease in Hourly Rates Hourly Rates Hourly Rates Hourly Rates Principal 165 180 15 9.1% Project Architect I 145 170 25 17.2% Project Manager I 130 150 20 15.4% Project Designer I 130 150 20 15.4% Regular Meeting Minutes July 9, 2024 Page 14 of 17  Project Manager II 120 140 20 16.7% Space Planner 120 130 10 8.3% Computer Modeling 140 170 30 21.4% Clerical 48 48 0 0.0% 4. Accept staff request to limit future increases of hourly rates. Project Status Update: • Architectural Construction Documents – 90% Complete • Permit Submittal – 90% Complete • Architectural Bidding & Negotiation – July 2024. The next step for the Council was to decide whether to approve the contract amendment and continue on schedule, to deny the contract amendment, or to examine other options Mayor Wright confirmed no public comments had been received and this item. No members of the public in attendance wished to comment. Councilmembers Hoffmire, Marshall, Stucky, Woessner, and Mayor Pro Tem Hizon provided their re- spective questions and comments to Mr. Carletti and to Interim Fire Chief Gordon Olson and City Engi- neer Alex Warner who also provided information. Table: After considerable discussion the Council was of a consensus to table this item to be brought back to a future meeting with additional information. b. Fire Station #81 – Fire Tower Repairs Interim Fire Chief Gordon Olson presented the item. He noted the original training tower was built in 1991. It is a three-story structure with a basement and is utilized for training for firefighting and hosework, search and rescue, roof ventilation, rope rescue, and more. The Oak Harbor Police Department also uses the tower for multiple training scenarios. Needing repairs are: Doors and Frames – need replacement Pump Test and Confined Space “Pit” repairs Window Sliders replacement Balcony Sliders replacement Original contractor P& L Construction provided an estimate of $28,460 for the repairs. The amount is under the threshold of the Mayor’s authority. If approved by the Council, staff will include this in the next budget amendment. Mayor Wright confirmed no public comments had been received. There were no comments from the public in attendance. Councilmembers Stucky and Woessner provided their respective questions and comments. Coun- cilmember Stucky noted he had a personal loan with the owner of P&L and asked City Attorney Evans if that posed any conflict. She noted it did not. Councilmember Woessner noted he has a business relationship with the owner of P&L. Attorney Evans likewise confirmed that the nature of the relationship caused no conflict. Regular Meeting Minutes July 9, 2024 Page 15 of 17 Motion: Councilmember Marshall moved to approve the budget amendment for repairs of the Training Tower. The motion was seconded by Councilmember Wiegenstein and passed unanimously. 9. OTHER ITEMS FOR CONSIDERATION - None 10. REPORTS & DISCUSSION ITEMS a. Creative Arts Fund Budget Amendment Presentation Parks and Recreation Director Brian Smith presented this information only item City of Oak Harbor Municipal Code Chapter 3.26 - CREATIVE ARTS FUND There is hereby created a special Oak Harbor Municipal Fund No. 115 entitled “creative arts fund” to be used as a fund to be expended to promote the following goals: (1) Foster arts and cultural programs for the enrichment of the city and its citizens. (2) Foster the development of a local arts community. (3) Coordinate and strengthen new and existing art organizations and develop cooperation with regional entities. (4) Develop a program for public art. (5) Further the vision of Oak Harbor as a vibrant and progressive community. *Fund is Use Restricted for the purposes established for said fund. (Ord. 1871 § 1, 2019; Ord. 1501 § 4, 2007). Special Revenue Funds • Account for proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes • Examples: Creative Arts fund, Street fund, Park Impact Fees •The City dedicates 0.25% tax (of a total tax rate of 6.25%) on a subset of utilities (solid waste, sewer collection and treatment, and water) to the Creative Arts Fund •This tax is not levied on cellular service, electricity, natural gas, landline telephones, or stormwater, for which at total 6% utility tax rate is levied •The Creative Arts Fund-dedicated share of utility taxes is approximately $60,000 per year of approxi- mately $3 million total utility tax collections •For example, in 2021 approximately 2% of utility taxes were dedicated to the Creative Arts Fund Historically, the Creative Arts Fund dollars have been primarily used for the purchase and preservation of art within the City • New projects are recommended by the Arts Commission but require City Council action to be budgeted • Modest amounts of spending fund other activities, including: • Art maintenance • Support of Community Events • Arts Programs • Oak Harbor School District Support • Art/Project Management Consultants Staff is proposing a budget amendment. Director Smith noted as part of the Council’s discussion with the Arts Commission on the Creative Arts Fund last year, Council wanted to see a plan for how Creative Arts Funds would be spent to implement the intent of the fund instead of building a fund balance. 2024 Arts Budget Amendments: Previous City Council Approved Items: • $10,500 Art Project Management Regular Meeting Minutes July 9, 2024 Page 16 of 17  • $6,800 Discretionary/Community Arts Support • $5,364.83 Sculpture Maintenance • $1,500 Misc. o *$10,000 for utility box wrapping. o *$10,000 for art procurement – Song of the Salish Sea. o *$62,500 to the Rotary Club for support of the Windmill project. o *$75,875 to develop a City Arts Plan. All expenses from Fund 115 Creative Arts Fund have already been approved by Council except for $7,000 to install the last two Kinnebrew sculptures and $15,000 for arts program startup. Staff will include the budget in the mid-year 2024 budget amendment for Council approval. The City received no comments on this item. There were no questions or comments from the Council. 11. EXECUTIVE SESSION - None ADJOURN There being no further business, Councilmember Woessner moved to adjourn the meeting, seconded by Councilmember Wiegenstein. The vote on the motion was unanimous, therefore the meeting was adjourned at 10:56 p.m. Certified by Julie Nester, City Clerk Regular Meeting Minutes July 9, 2024 Page 17 of 17