City Council

Oak Harbor City Council Special Workshop Minutes – Marina Tour and Discussion September 12, 2024 This meeting was held off-site for a tour of the Oak Harbor Marina, followed by lunch and a discussion of the Marina at the upstairs meeting room A306 of the Whidbey Campus of Skagit Valley College. The meeting was open to the public but not recorded. MARINA TOUR Parks and Recreation Director Brian Smith, Harbormaster Chris Sublet and Marina staff provided a site tour of the Oak Harbor Marina from 10:30 a.m. – 12:00 p.m. This was followed by lunch from 12:00 p.m. – 1:00 p.m. in meeting room A306 of the Whidbey Campus of Skagit Valley College COUNCIL DISCUSSION Mayor Wright called the discussion portion of the special workshop meeting for the City of Oak Harbor to order at 1:00 p.m. ROLL CALL City Council Present: City Staff Present Mayor Ronnie Wright City Administrator Sabrina Combs Mayor Pro Tem Tara Hizon Deputy City Administrator David Goldman Councilmember Jim Woessner Parks and Recreation Director Brian Smith Councilmember Bryan Stucky Harbormaster Chris Sublet Councilmember Shane Hoffmire - absent Grants Administrator Wendy Horn Councilmember Eric Marshall City Clerk Julie Nester Councilmember Christopher Wiegenstein Councilmember Barbara Armes Also in attendance: Mark Martinez from Representative Rick Larsen’s office MAYOR Mayor Wright noted the purpose of this special workshop meeting, tour and discussion, to review what is known about the needs at the Marina, including infrastructure, dredging. Breakwater, electrical, and other needs. City Administrator Combs introduced Parks and Recreation Director Smith who noted he hoped the tour was helpful and allowed the Council to see all facets of the Marina in preparation for reviewing options and major issues, including a sense of urgency regarding the need for dredging. Director Smith noted the Marina is fifty years old with dredging, breakwater, fuel dock, and electrical issues, with escalating damage that could result in a loss of insurance coverage. The current insurance deductible for damages is $100,000. Statistically, 77% of the users of the Marina are from Island County and of those, 50% are Oak Harbor residents. It is important to note that the Oak Harbor Marina is a local and not a regional marina, which also limits funding opportunities. Special Workshop Meeting Minutes September 12, 2024 Page 1 of 3 The Marina has always operated as an Enterprise fund and does not receive any City funding or tax- payer dollars. It relies solely on revenue generated at the Marina for all expenses associated with oper- ating a 420-slip marina, including all capital projects. Dredging is needed within the Marina and the waterway leading into Oak Bay is also experiencing in- creased siltation and requires dredging. Some vessels are unable to enter or exit during low tide. Con- sultants have recommended the Marina consider infrastructure for accommodating larger vessels, how- ever, most larger vessels require greater depth. The City dredged a portion of the Marina ten years ago, and in hindsight, a full dredging, although costly, would have been more beneficial long-term. The current debt service bond for that dredging is for a twenty-year period. Considerations include the need for additional dredging and whether user fees and moorage rates can pay for both bond debt service and repairs. A new breakwater needs to be installed and reconfigured to accommodate larger, modern ves- sels. The cost of these projects is estimated to be approximately $44 million. Additionally, the dredging of the Oak Bay channel also needs consideration. As the Marina is largely recreational in nature, there is no funding or assistance anticipated from the Army Corps of Engineers. The cost of the channel dredging is unknown, but it is likely to be more than $50 million. These costs are more than the Marina can fund using current methods. As a City owned recreational marina, it does not qualify for grant funding. Attempts to obtain state and federal appropriations have met with little success. The current projects that require attention have been delayed to the point that decisions are necessary to determine the future of the Marina. Director Smith noted staff has outlined the following options for the future of the Marina: • Forming a Port District – this requires a vote of the citizens of Oak Harbor • Grants and appropriations – staff continues to look for opportunities • Special Taxes and Bonds, including a potential Business & Occupation (B&O) tax. • Closure of the Marina • Recommended reconfiguration and increase of rates as outlined by the consulting firm of BST Associates. The Council discussed aspects of each of these options as well as potential combinations of options. Director Smith, Harbormaster Sublet, and Deputy City Administrator Goldman responded to questions and comments from the Council. This included a financial review of the Marina, a discussion and sum- mary of pursuing creation of a Port District including financial benefits, advantages and disadvantages, continued requests for legislative support, and consideration of special taxes and bonds. A last resort would be the option to close the Marina, which might include the necessity for demolition. Director Smith outlined next steps for Marina planning. Staff will be hosting events to engage with the public: • September 18, 2024 Open House at City Hall from 6:00 p.m. to 7:30 p.m. The event will feature presentations of the options presented today. • September 21, 2024 Marina 50th Birthday Celebration at the Marina from 11:00 a.m. to 2:00 p.m. • September 25, 2024 City Council Workshop presentation. Following Council discussion, it was determined an additional Open House was desirable, prior to Council consideration. Staff will schedule a second Open House for October 2, 2024 at City Hall, and compile information and feedback to review with the Council at their October workshop. Special Workshop Meeting Minutes September 12, 2024 Page 2 of 3 The Council thanked staff for the presentations and noted they would look forward to hearing the input from residents regarding the options presented. ADJOURN Mayor Wright thanked all for their attendance and requested a motion to adjourn the special workshop. Commissioner Stucky moved for adjournment, seconded by Councilmember Marshall. There being no further discussion, the special workshop adjourned at 2:01 p.m. Certified by Julie Nester, City Clerk Special Workshop Meeting Minutes September 12, 2024 Page 3 of 3