City Council

Oak Harbor City Council Regular Meeting Minutes November 6, 2024 This was both a physical meeting location and a virtual meeting. Meeting was viewable via YouTube at www.youtube.com/cityofoakharbor, on Facebook, and on Cable Channel 10/HD 1090 following the meeting. CALL TO ORDER Call To Order and Native Lands Acknowledgement - Mayor Wright called the meeting to order at 5:30 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 James Sanchez, Life 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 - absent Development Services Director David Kuhl Councilmember Bryan Stucky Public Works Director Steve Schuller Councilmember Shane Hoffmire City Engineer Alex Warner Councilmember Eric Marshall Police Chief Tony Slowik Councilmember Christopher Wiegenstein Police Captain Kevin Barton Councilmember Barbara Armes Fire Chief Travis Anderson Economic Development Coordinator Steve McCaslin Recreation Manager Liz Lange Recreation Coordinator Craig Lamas-Cole 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 greeted all in attendance. He noted Councilmembers Hoffmire was participating remotely and that Councilmember Marshall had indicated he would be arriving at approximately 7:00 p.m. He noted Councilmember Woessner had asked to be excused and requested a motion. Mayor Pro Tem Hizon moved to excuse Councilmember Woessner, seconded by Councilmember Wiegenstein. The vote on the motion passed unanimously. 1. APPROVAL OF AGENDA Mayor Wright requested changes to the agenda. Hearing none, the agenda was approved as pre- sented. Regular Meeting Minutes November 6, 2024 Page 1 of 9 2. PRESENTATIONS Proclamations – None. Honors & Recognitions – None. Community Presentations - None. 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 or from a non-verifiable address will be shared with the Mayor and Council but will not be displayed. Comments on public hearing items will be taken during the public hearings portion of the meeting. The City received one new public comment since the last regular meeting, from Ryan Elting of Green- bank regarding the recently passed Ordinance 2009 – creation of a Land Action Committee. His com- ment was displayed. Mayor Wright asked if there were any members of the public present who wished to speak to any other items not listed on the agenda or on the consent agenda. He noted the Clerk would call on speakers in the order in which they signed in to speak. Mayor Wright asked speakers to please step forward to the microphone and state their name and address, and to please limit comments to three minutes. Hearing no one with a desire to address the Council, the public comment period was closed. 4. CONSENT AGENDA Consent Items a. Approval of Minutes: City Council Meeting of October 15, 2024 and City Council Workshop of October 23, 2024 b. Approval of Payroll and Accounts Payable Vouchers c. Professional Services Agreement – Amendment with Carletti Architects, P.S. for Consultant Services – Architectural Design of Fire Station No. 82 d. Purchase Authorization: Panasonic Laptops for Oak Harbor Police Department e. Interlocal Agreement Renewal with South Correctional Entity (SCORE) for Inmate Housing 2025-2027 Mayor Wright called for any changes to the consent agenda. Hearing none he called for a motion for approval. Councilmember Wiegenstein moved to approve the consent agenda, seconded by Mayor Pro Tem Hizon. The vote on the motion passed with four in favor and one abstention as Councilmember Hoffmire’s video and audio connection was temporarily frozen, and Councilmembers Woessner and Marshall were absent. 5. MAYOR & COUNCIL COMMENTS a. Mayor’s Comments Mayor Wright provided the following comments: Regular Meeting Minutes November 6, 2024 Page 2 of 9 • Thank you to Mayor Pro Tem Hizon – My sincere thanks to Mayor Pro Tem Hizon for presiding over meetings while I was out of the office attending two conferences and on vacation. I am always en- couraging our staff to take their well-earned vacation time, and I appreciate Mayor Pro Tem’s service on my behalf. • Yesterday’s Election – It is said that the one constant in this life is change. For most of us, change is difficult and carries a lot of mixed feelings and concerns, which we should acknowledge and re- spect. Our County, our State, and our Country have elected new leaders and there will be transitions in the weeks ahead that have far-reaching effects, both here at home and across the nation. Now more than ever, is the time for us to continue to move forward together as a community. Ours is a community of service; a community which values inclusivity, diversity, and engagement. I am proud to see this reflected in our staff and in the work they do, both here in our city, and beyond. Here are three recent examples: Communications Officer Magi Aguilar shares her communication skills and Hispanic heritage while reading to children at the public library each week. Magi reads in Spanish while another volunteer reads in English, providing bi-lingual education. City Archeologist and Project Manager Gideon Cauffman is a member of the Jamestown S’Klallam, Tribe. Gideon serves as the Vice-Chairman of the Tribal Gaming Commission and his story is fea- tured as part of the Indigenous Voices display at the library. Our Public Works Team recently introduced preschoolers to the world of biosolids. It was great to see the kids so engaged while learning the value of sustainability. Thanks to our team for making biosolids fun! I am proud that our City attracts employees who are such dedicated community servants and lead- ers. • City Office Closures – The City will hold an all-staff training and benefits fair on Thursday, November 7th. City offices will be closed from 9:45 a.m. to 2:15 p.m. This closure may delay the schedules for collection of garbage, recycling, and yard waste. Thank you for your patience. City offices will also be closed on Monday, November 11th in observance of Veterans Day. We invite you to join us at the Veterans Day program at the High School and the Parade downtown. Garbage collection will move to the next day. • Still Hiring: The City has openings for employment in several areas. See our website for a complete listing. b. Councilmembers There were no comments from members of the Council. 6. PUBLIC HEARINGS & MEETINGS a. Public Hearing – Ordinance No. 2010: Levying General Property Taxes for Fiscal Year Com- mencing January 1, 2025 Regular Meeting Minutes November 6, 2024 Page 3 of 9 Deputy City Administrator Goldman provided the Council with an overview of the proposed ordinance which would increase property taxes by one percent (1%). Under RCW 84.55 the City of Oak Harbor is required to address its annual property tax levy. After holding a public hearing, the City must adopt by Ordinance any proposed change to its regular property tax levy. The City may make a base adjustment to its regular property tax levy using the limit factor of 101 percent (101%) or 100 percent (100%) plus inflation. Inflation is measured by the change in the Implicit Price Deflator (IPD) published by the Bureau of Economic Analysis for the most recent (12) twelve- month period. The IPD rate for setting 2025 property taxes is calculated at 2.57 percent (2.570%) per Municipal Research Services Center (MRSC) Guidance. With the IPD being above one percent (1%), the process for establishing the city's regular levy does not involve an additional step of adopting a resolution/ordinance of “substantial need” by City Council, as had been needed on occasion, where the IPD was lower than one percent (1%). Increasing the regular property tax levy by the State limit of one percent (1%) would increase revenues by approxi- mately $75,300.17. Inflation often exceeds 1%. Under current law, the City may levy taxes in an amount no more than the limit factor multiplied by the highest levy of the most recent three years plus additional amounts resulting from new construction and improvements to property, newly constructed wind turbines, and any increase in the value of stated assessed utility property The one percent (1%) increase to the levy equates to approximately $75,300.17. The 2025-2026 Bien- nial Budget includes a one percent (1%) increase to meet operational needs, maintain the existing level of services provided by the City to its citizens, and keep pace with the long-term impact of inflation. Deputy City Administrator Goldman explained that not implementing the 1% increase would affect fu- ture property taxing. For every $100 paid in property taxes, approximately $27 of that goes to the City of Oak Harbor. As assessed valuation goes up, the levy rates go down. Mayor Wright opened the public hearing and invited comments from the public and confirmed no public comments had been received. Hearing no one with a desire to speak, the public hearing was closed. Councilmember Stucky and Mayor Pro Tem Hizon provided their respective comments. Motion: Mayor Pro Tem Hizon moved to adopt Ordinance No. 2010, increasing property tax by one percent (1%) and authorize the Mayor to sign the 2025 Property Tax Levy Certification. Councilmember Wiegenstein seconded the motion, which passed unanimously. b. Preliminary Hearing: Ordinance No. 2011: 2025-2026 Biennial Budget, per RCW 35A.24.090 Deputy City Administrator Goldman presented information regarding the preliminary hearing on the City’s proposed 2025-2026 Biennial Budget and explained there was no action for the Council to con- sider this evening. Deputy City Administrator Goldman reviewed the steps taken for the budget so far: At the September 25, 2024 City Council Workshop, Deputy City Administrator/Finance Director Gold- man presented the Mayor’s Proposed Preliminary 2025-26 biennial budget to the City Council, which shall set forth the financial program of the City for the ensuing fiscal biennium. Regular Meeting Minutes November 6, 2024 Page 4 of 9 At the October 23, 2024 City Council Workshop, Deputy City Administrator/Finance Director Goldman presented the Mayor’s Proposed 2025-26 biennial budget to the City Council, which shall set forth the financial program of the City for the ensuing fiscal biennium. Per RCW 35.34.090, prior to the final hearing on the budget (scheduled for November 19, 2024), the City Council shall hold public hearings on the budget or parts thereof. Longstanding opinion by the Municipal Resources Services Center (MRSC), which Oak Harbor has followed, concludes that the budget and revenues Public Hearing held at the October 7, 2024 City Council meeting and the Novem- ber 6, 2024 (today) Public Hearing held on the proposed biennial budget satisfies this obligation. Updates from the budget that was presented at the October 23, 2024 Council Workshop include high- lights of primary changes: 1. Respite Center modular building - $30,000 to replace the 22-year-old roof that is showing signs of advancing wear to be programmed in 2025. 2. Marina Dredging and Improvement Project – $39,800 additional carry forward funds to be programmed in 2025. 3. Updates and refinements to programs and performance measurements. 4. Adjustments to medical benefit premium costs based on information received from our health insurance provider. 5. Recalculation of beginning/ending fund balances to balance the budget. The adoption hearing for the budget is scheduled for November 19, 2024. Deputy City Administrator Goldman reviewed components of the Biennial Budget, which includes 61 programs and new performance measurements. He provided an Analysis of Variance (ANOVA) for all funds and noted that without fund balances, fund transfers, and interfund allocations, the 2025 budget decreases by 0.7 percent. Areas of cost increases include communications, due to ICOM increases, insurance increases, water rates from the City of Anacortes of an estimated 20 percent (20%), forestry increases, operations and maintenance increases for long-term capital planning, and public utility due to a 22 percent (22%) in- crease in the cost of solid waste. Other increases include salary cost-of-living (COLA) increases of 2.5 (2.5%) percent in 2025 and 2.0 percent (2%) in 2026, utility taxes paid by the City, travel costs and training costs. Deputy City Administrator Goldman reviewed the Biennial Budget fund categories, and revenue and expense trends by category, both recurring and non-recurring, and provided a long-term capital plan overview. Mayor Wright opened the preliminary hearing and invited public comments. 1. Carrie Stucky of Oak Harbor addressed the Council, representing the Parks and Recreation Advisory Commission as the Commission Chair. She noted the Commission is working to help the Parks and Recreation Department expand opportunities for the community. She noted that page 526 of the proposed budget included six decision package requests that were not currently funded. On behalf of the Parks and Recreation Advisory Commission, she asked that the Coun- cil review and include these package requests in the Biennial Budget. Mayor Wright confirmed no other public comments had been received. Hearing no one else with a desire to speak, Mayor Wright concluded public comment and closed the preliminary hearing. He noted the public hearing on the final 2025-2026 Biennial Budget would be held on November 19, 2024. Regular Meeting Minutes November 6, 2024 Page 5 of 9 Councilmembers Stucky, Hoffmire, Wiegenstein, Armes and Mayor Pro Tem Hizon provided their re- spective comments. Recreation Manager Lange responded to questions regarding Parks and Recreation programs, quan- tifying success, and increasing registration data. Responding to questions regarding the addition of the six decision package requests, and acknowledg- ing the Council’s interest in including these programs, Deputy City Administrator Goldman noted the Council could vote to include them. Funding would come from the General Fund balance. Motion: Councilmember Wiegenstein moved to include additional Parks and Recreation programming, as presented, as an amendment in the Biennial Budget. Councilmember Hoffmire seconded the motion. Deputy City Administrator Goldman noted the cost of the programs was $210,866. The vote on the motion passed unanimously. Further discussion of Parks and Recreation department programming continued, including cost recov- ery, attendance, community feedback and awareness, and branding. 7. ORDINANCES & RESOLUTIONS - None 8. CONTRACT & AGREEMENTS a. Professional Services Agreement - Better City, LLC for Economic Analysis and Strategy Plan (EDSAP) Development Services Director Kuhl introduced consultant Jason Godfrey of Better City, LLC. Director Kuhl presented the Agreement. He explained the City has been interested in developing an economic development program for several years. The City has used American Rescue Plan Act (ARPA) funding for the last two years to develop the foundation of an economic development program. Funding for the two-year program is ending in December 2024 and the Council expressed a desire to move forward and create a vision for economic development through a consultant. The Council approved a Request for Proposal (RFP) for consulting services to develop an economic development strategy and action plan on July 24, 2024. There were six firms that submitted proposals. City staff have reviewed the proposals and Better City, LLC finished first in the scoring. Staff then interviewed Better City, LLC and found them to be the best firm available who can tailor their scope of work to fit Oak Harbor. Better City, LLC will develop an economic development strategy and action plan for $43,000. The cur- rent budget shows $85,000 has been allotted for this purpose. The scope proposes future economic development work after the study and action plan are complete. There is adequate funding to accom- plish these activities as desired by the City. Director Kuhl thanked the Council for their support and particularly Mayor Pro Tem Hizon and Coun- cilmember Marshall for their participation in scoring the proposals and interviews. He provided exam- ples of other Better City, LLC clients. Jason Godfrey explained Better City, LLC focuses on smaller communities with greater needs and less resources. The firm helps not only with the creation of an economic development plan, but also with how to implement it and move forward, customizing the scope of work to the needs of the community. He expressed that Better City was excited to work with Director Kuhl and his team and to have an impact for the City of Ok Harbor. Director Kuhl also thanked Economic Coordinator Steve McCaslin for his contributions to the project. Regular Meeting Minutes November 6, 2024 Page 6 of 9 Mayor Wright confirmed no public comments had been received and called on those present for com- ments. Hearing no public comments, he called on the Council for their comments. Councilmembers Hoffmire, Stucky, and Mayor Pro Tem Hizon provided their respective questions and comments. Motion: Mayor Pro Tem Hizon moved to approve the Professional Services Agreement with Better City, LLC for an Economic Development Strategy and Action Plan. Councilmember Stucky seconded the motion, which passed unanimously. b. Professional Services Agreement - Amendment No. 2 with Perteet, Inc. Development Services Director Kuhl presented the amendment. He explained the Development Ser- vices Department would like to amend the Professional Services Agreement (PSA) with Perteet Incor- porated, the firm currently performing natural resource analysis in Oak Harbor. The original PSA was signed on October 3, 2023. The first amendment extended the contract to October 15, 2024, amended the scope to include analysis of Freund Marsh, and included an additional $40,000 to the maximum contract amount. The proposed amendment is to extend the contract, which includes analysis of wetlands, shoreline, and critical areas, until October 15, 2025, to continue the on-call services for natural resources analysis as described in the original Scope of Work. The current total for the contract is $60,000. Funding has been included in the 2025-26 biennial budget. The analysis provided by Perteet will help the City to develop strategies to work with sea level rise and other Comprehensive Plan programs. Mayor Wright confirmed no public comments had been received and invited anyone present to speak. Hearing no one, he turned to the Council for their comments. There were no comments or questions from the Council. Motion: Councilmember Stucky moved to approve the amendment to the Professional Services Agree- ment with Perteet Incorporated for Natural Resources Analysis Services. Councilmember Wiegenstein seconded the motion, which passed unanimously. 9. OTHER ITEMS FOR CONSIDERATION a. 2025 Legislative Priorities City Administrator Combs reviewed the proposed 2025 Legislative Priorities. She explained the Mayor, herself, and Deputy City Administrator Goldman have gathered a list of 2025 Legislative Priorities after reviewing the 2024 Legislative Priorities, the Association of Washington Cities (AWC) City Legislative Priorities, and discussing Island County and municipalities legislative priorities within Island County at the Council of Governments (COG) meetings. The current list includes some priorities from previous years with modifications and some new priorities. City Administrator Combs noted the new draft 2025 Legislative Priorities includes priorities that connect with the City Council Priorities adopted earlier this year. Regular Meeting Minutes November 6, 2024 Page 7 of 9 • Emergency Services = Increased Police Engagement, including a regional training facility in Island County • Flexible Real Estate Excise Tax (REET) • Housing and Childcare Availability = Promote/Implement Housing Action Plan • Indigent Defense Costs = Employee Morale/Staffing and Workloads/Equity • Invest in Our Community = Roadway Projects, Repair Utility Infrastructure, Water Storage and Supply, and Connecting Downtown and Marina • Property Tax Cap – continuous discussion of raising the cap • Public Records Management = Employee Morale/Staffing and Workloads/Equity • Ratepayer Impacts - What we can do as a City to address these • Naval Air Station Whidbey Island = Public Involvement City Administrator Combs noted staff had provided a potential motion and resolution in the event the Council decided to approve the draft 2025 Legislative Priorities as listed. However, if Council has changes, staff has tentatively added this topic to the November 19, 2024, City Council Meeting to in- corporate edits and receive Council approval. After the draft 2025 Legislative Priorities are approved by Council. Staff will add them to the City website and distribute them to local legislators. Mayor Wright confirmed no public comments had been received. He called upon the Council for their comments. Mayor Pro Tem Hizon and Councilmembers Stucky, Armes, Hoffmire and Wiegenstein provided their respective questions and comments. Councilmembers Stucky, Armes and Marshall expressed a desire to see the property tax cap item removed. City Administrator Combs affirmed the AWC had requested that all cities include this in their legislative priorities. Mayor Pro Tem Hizon disagreed, noting that an increase to the cap would not be automatic and would still require Council approval annually. Increasing the cap would allow those cities that have a need the ability to do so. Councilmember Hoffmire agreed with Mayor Pro Tem Hizon, noting the increase to the property tax cap has been an AWC priority for quite some time. Councilmember Wiegenstein noted he saw the potential for and against both options. Mayor Wright noted that as explained by Mayor Pro Tem Hizon, the property tax cap item, if passed through the legislature, would allow cities across the state to go as high as a three percent (3%) in- crease, but this would not be automatic and would require an annual vote by each city. Regarding Child Care, Mayor Wright noted the City’s municipal code was more restrictive than the state code and was a priority for City administration. Motion: Councilmember Stucky moved to adopt the 2025 Legislative Priorities with the removal of the property tax cap. Mayor Pro Tem Hizon seconded the motion for allow for further discussion. Deputy City Administrator Goldman suggested the Council could consider supporting the raise in the tax cap but making any implementation above one percent (1%) by the City of Oak Harbor require a supermajority Council vote. Discussion continued. In response to questions, City Administrator Combs noted increasing the prop- erty tax cap had support from several cities at the recent District meeting and was discussed by the Council of Governments representatives. Mayor Wright noted support for the increase was favored across the board by those attending the All-Mayor’s Conference. Councilmember Wiegenstein stated he was not in favor of passing the motion as presented, and with the Council apparently split on the subject, preferred to wait for further discussion at the November 19th Council meeting. Regular Meeting Minutes November 6, 2024 Page 8 of 9 Mayor Wright called for a vote on the motion as presented, to approve the 2025 City of Oak Harbor Legislative Priorities, with removal of the property tax cap. Mayor Pro Tem Hizon and Councilmembers Hoffmire and Wiegenstein voted against the motion. Coun- cilmembers Armes, Stucky and Marshall noted in favor of the motion, resulting in a tie. Mayor Wright voted against the motion, resulting it its failure. Mayor Wright requested that staff bring the 2025 City of Oak Harbor Legislative Priorities back with two options, including and excluding the property tax cap, to the November 19th Council meeting for further discussion and a potential decision. 10. REPORTS & DISCUSSION ITEMS - None 11. EXECUTIVE SESSION - None ADJOURN There being no further business, Councilmember Wiegenstein moved to adjourn the meeting, se- conded by Councilmember Marshall. The vote on the motion was unanimous, therefore the meeting was adjourned at 7:23 p.m. Certified by Julie Nester, City Clerk Regular Meeting Minutes November 6, 2024 Page 9 of 9