City Council

Oak Harbor City Council Workshop Meeting Minutes November 20, 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 following the meeting on Cable Channel 10/HD 1090 CALL TO ORDER Mayor Wright called the workshop meeting to order at 1:00 p.m. 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 Public Works Director Steve Schuller Councilmember Shane Hoffmire - absent Parks and Recreation Director Brian Smith Councilmember Eric Marshall - absent Police Sargeant Matthew Krysinski Councilmember Christopher Wiegenstein Fire Chief Travis Anderson Councilmember Barbara Armes City Engineer Alex Warner Principal Planner Rajesh Cac Kamak Central Services Manager Sandra Place Harbormaster Chris Sublet Grants Administrator Wendy Horn Executive Services Coordinator Macalle Finkle Communications Officer Magi Aguilar City Clerk Julie Nester Also in attendance: City Attorney Hillary Evans of Kenyon Disend, PLLC MAYOR Mayor Wright welcomed all in attendance. Mayor Wright observed public comments are not normally taken at workshop meetings, although the Council may allow or request public participation on action items. There no action items on the agenda today. Mayor Wright thanked City Staff, including Tom Wade for facilities maintenance, City Fire and Police Departments, and contractor Tim Shelley for their work in getting power and internet connections quickly restored to City Hall during last night’s City Council meeting, and for all the work by City crews and first responders in assisting those impacted by last night’s storm. CITY ADMINISTRATOR a. Monthly Departmental Reports Workshop Meeting Minutes November 20, 2024 Page 1 of 9 City Administrator Combs provided updates from the monthly departmental reports. Key Projects for staff over the past two months include work on the 2025-2026 Biennial Budget, Marina Next Steps, the Comprehensive Plan, Community Events and Partnerships, and Construction Projects. City Administrator Combs highlighted and reported on the following projects: • Goldie Road Property Sale – City Administrator Combs, Development Services Director Kuhl, and Economic Development Coordinator McCaslin met with Pastor Dean to discuss the contract for the sale of the property and processed the contract. Staff is currently working through the escrow process with the title company. • Association of Washington Cities (AWC) District 14 Meeting – City Administrator Combs at- tended on behalf of the City and received great information and resources. SWC City Action Days are scheduled for February 19-20, 2025 in the Olympia/Lacey area. • Advisory Boards – Staff is working on revisions to bring back to the Council. • Information Technology – The City issued a Request for Proposal (RFP) for IT Support Services on October 12, 2024. Four responses were received prior to the November 12, 2024 deadline and are under review. There were no questions from the Council. CITY COUNCIL a. Council Calendar for 2025 City Administrator Combs reviewed the background for the Council Calendar, approve by the Council in December of each year for the following year. • Oak Harbor Municipal Code (OHMC) 1.04.010 sets the time and place of regular Council meet- ings. It does not include mention of workshops, which are recommended for attendance by the Council, but not required. • Council Rules of Procedure (amended via Resolution 24-22) sets regular meeting times. Does not include mention of workshops. • City Council annually adopts the following year’s calendar. Some Councilmembers have inquired about potentially moving Council workshops from Wednesday to Tuesday. • Staff identified some Council dates they would like to recommend the Council consider moving. The Council discussed potential revisions to the calendar. Councilmembers Stucky, Wiegenstein, Woessner, Armes, and Mayor Pro Tem Hizon provided their respective questions and comments. Staff will bring a draft calendar to the December 3, 2024 Council meeting for consideration. FINANCE a. Master Fee Schedule This item was moved forward in the agenda when technical difficulties prevented an online connection by the City’s Comprehensive Plan consultant. Executive Services Coordinator Finkle reviewed the proposed amendments and was joined by Deputy City Administrator Goldman and Parks and Recreation Director Smith in responding to questions re- garding the City’s Master fee Schedule. Provisions of the Oak Harbor Municipal Code (OHMC) require fees for certain programs and services to be adopted in a Master Fee Schedule. The fee schedule is reviewed annually, and revisions are presented to the City Council as needed to be adopted by resolu- tion. Workshop Meeting Minutes November 20, 2024 Page 2 of 9 There are no proposed amendments to: Schedule C “Fire” Schedule E “Police” Schedule F “Public Works” Addendum 1 “Public Records” Impact Fees will be reviewed with a consultant in 2025. Amendments are recommended for the following: Schedule A “Development Services” • Land Development Fees were generally adjusted by 3% Street openings to be covered under right-of-way excavation Grading permits to encompass land clearing Water service connections Housekeeping items: Utility System Development Charges and Zoning Districts appeals • Building fees are set by the Washington State Building Code Housekeeping amendments Schedule B “Finance and Utilities” • Clarifying the time for after-hours, weekend, and holiday water turn-on services • Special events Standard permit application fee Low impact permit application fee Parade Routes Road Closures Schedule D “Marina” • Special case moorage rates for organizations, clubs, and groups • Special case facility rates for patios and upland areas • Housekeeping amendments to remove 2023-2024 fees Schedule G “Parks and Recreation” • Park facility reservations • Reservations of City fields • Parks staff billable hours Incorporating Addendum 2 “Senior Services” • New methodology for recreation programming • Adjusted facility rental fees Members and Non-Profits received a 20% discount Councilmembers Woessner, Stucky, Wiegenstein, Armes, and Mayor Pro Tem Hizon provided their re- spective questions and comments. DEVELOPMENT SERVICES a. 2025 Comprehensive Plan Major Update – Future Land Use Map and Survey Results Workshop Meeting Minutes November 20, 2024 Page 3 of 9 Principal Planner Cac Kamak noted the future land use map was still in process and staff would return with more information once work is completed with Island County and additional survey results are com- piled. He introduced Erin O’Kelley, long-range planner with the consulting firm of Kimley-Horn who are assisting the City with the Comprehensive Plan periodic update. Ms. Horn provided a briefing on three segments of the planning process: Community Engagement Overview Engagement Timeline for data collection, two surveys, interviews and engagement, followed by presentations to the Planning Commission and the City Council, culminating in a public hearing for adoption in June of 2025. First Community-wide Survey Results Survey Goals - Gather information about existing conditions, gauge attitudes about Oak Harbor’s potential future growth, and collect information valuable to the new climate element and resili- ency sub-element. Community engagement for the first community-wide focused on opportunities, challenges, areas for growth, and climate-related hazard/asset assessments. Survey Demographics Summary: Most responses by demographic: Between 45-54 (second highest was 35-44) Income was reported at $100,000 or higher Higher female response rate Most respondents lived in Swantown or Fort Nugent Oak Harbor Demographics Median Age: 31.7 Years Old Median Household Income: $68,039 Female percentage: 50% Highest Populated Neighborhood (by existing population): Broadview Top Three Focus Areas Ranked by Respondents 1. Public safety and emergency response 2. Sidewalks, roads, utilities, and other infrastructure improvements 3. Businesses and jobs Top Three Amenities Ranked by Respondents 1. Neighborhood commercial 2. Community Facilities 3. Outdoor recreation amenities Respondents said: Old Town had the most opportunity for Mixed-Use (both residential and commercial and neighborhood shopping retail). Fort Nugent has the most opportunity for 2-5 unit residential and multi-story residential. Ault Forest had the most opportunity for commercial/industrial. Swantown had the most opportunity for accessory dwelling units/mother-in-law. In Infrastructure and roads were the highest ranked assets by respondents. First OakPAC Meeting Results Workshop Meeting Minutes November 20, 2024 Page 4 of 9 Ten stakeholders attended the first Oak PAC meeting, with several stakeholders from various organiza- tions and agencies including: WSDOT Habitat for Humanity of Island County Naval Air Station Whidbey Island Island County Staff (Housing Specialists) Builders Association Oak Harbor City Staff A primary topic was housing, including challenges and opportunities. Challenges: Cost to develop and supply housing at an "affordable price." Lack of multimodal transportation options in residential areas. Lack of public greenspaces for higher density housing areas. Balancing the planning for growth and actual development trends and market conditions. Cost of construction, difficulty providing low income (0-30%) affordable housing. Constructing and maintaining affordability. Use of SR20 as a connector or ways to mitigate it as a barrier. Navigating the culture shift in a growing population and adjusting to a bigger sized city. Opportunities: Creating partnerships for long term solutions and being able to create a diverse city. Development/redevelopment of the waterfront. Councilmembers Woessner and Stucky provided their respective questions and comments. PARKS AND RECREATION a. Future of the Oak Harbor Marina Harbormaster Chris Sublet and Parks and Recreation Director Brian Smith reviewed the conditions and challenges facing the City of Oak Harbor Marina, and reviewed feedback gathered from the Council at the October workshop. They were joined by Deputy City Administrator Goldman in responding to ques- tions from the Council. Summary: There are many challenges with the marina and more expected. The Marina is a regional marina that serves mostly Oak Harbor residents. The Marina can no longer afford the costs of larger or capital improvement projects. There are 3 paths the City Council can choose for the Marina: Remove and replace the Marina Renovate the Marina Close the Marina There are 4 options to fund the Marina projects: Formation of a Port District – (This option eliminates the next 3 options for the City) Grants & Legislative Support Special Taxes & Bonds Other – Maybe move the Marina into the general fund The public does not want to close the Marina Nobody wants Oak Harbor to become Oak No-Harbor Staff will be seeking direction at a December meeting Marina Options, Funding, and Projects Workshop Meeting Minutes November 20, 2024 Page 5 of 9 Options: Remove & Replace Dredging Marina - $11.8 million Breakwater replacement - $7.5 million Marina demolition and redevelopment - $24.9 million Dredge channel - $50 million Estimated total - $94.2 million Renovate Dredging Marina - $11.8 million Renovate docks, breakwater, electrical and mechanical - $13.2 million Dredge channel - $50 million Estimated total - $75 million Close the Marina Removal - $10 - $12 million (estimated) No revenue source to repay expense Upland property may be repurposed Estimated total - $10 - $12 million Financial Strategy Options: Three Strategies: Formation of a Port District Eliminates the next 3 options for the City. Grants & Legislative Support Special Taxes & Bonds Others – General Fund None of these are a “silver bullet” that will provide immediate funds to the Marina. It may take a combi- nation of these to fund everything. Challenges: The Marina is 50 years old and showing signs of its age: Marina is silting in Breakwater failing Marina docks and systems failing Channel silting in: More than $50 million Not a federal channel Army Corps of Engineers The cost of these projects is more than the Marina can afford. Recent Storm Event: November 4, 2024, F-11 Patio Windstorm Damage November 19, 2024, Windstorm Damage F-8, F-14 & F-15 patios walls are loose South end of E dock has come loose and shifted Breakwater Solutions: Breakwater Reinforcement Add extra support Workshop Meeting Minutes November 20, 2024 Page 6 of 9  Working with M & N May be installed by staff Metal fabricating required Questions from the October 23, 2024 City Council workshop: How do we quantify the economic numbers? What parts of the marina does the state, feds and City own? What are the details with the reversions clauses? Do we have permission to dredge the channel? Who makes the decision on the Navy property? What would be the new Port District footprint? Will a BO tax cover the dredging? Responses: How do we quantify the economic numbers? Recent Port District Funding Headlines: 1. $82M Goes to WA Ports for Clean Infrastructure Investments to Increase Capacity, Bolster Com- petitiveness, & Create New Jobs (October 29, 2024) 2. Cantwell, Murray, Larsen, Kilmer Announce $44.5 Million to Boost WA State Port Infrastruc- ture (November 13, 2024) Port of Anacortes - $72.5 million (7.4 million specifically for the marina) Port of Tacoma - $11.6 million Port of Port Angeles - $9 million Port of Neah Bay - $5.5 million Port of Seattle - $2.9 million Port of Bellingham - $1.9 million According to the 2023 Port of Anacortes Financial Statements, the Port of Anacortes marina brings more than $10 million in local spending to Anacortes each year, while the commercial dock generates $14 million in commercial activity annually. What parts of the marina does the state, feds and City own? DNR owns the tidelands City of Oak Harbor owns the uplands This is contested by DNR What are the details with the reversions clauses? There is a revision clause in the Deed (section 5). Staff is still working on these items and hopes to have an update soon. Do we have permission to dredge the channel? Staff met with the Army Corps of Engineers… This would be a normal dredge project with the normal permits required. Ownership needs to be determined - likely DNR Staff will be meeting with DNR to discuss ownership and dredge process Who makes the decision on the Navy property? Workshop Meeting Minutes November 20, 2024 Page 7 of 9 If a city is interested in pursuing the donation of Navy land, it would be best to contact the General Services Administration (GSA) and the Navy to begin the process, and potentially engage with local representatives in Congress to support the request. Specific Criteria for Donation: The federal government usually requires that the land be used for certain purposes, such as: Community development Parks and recreation Housing Education and health facilities Public infrastructure projects The donation is typically made to municipalities, county governments, or state agencies, and the use of the property must be restricted to public purposes. The property cannot be sold or developed for com- mercial use by private entities. What would be the new Port District footprint? The new Port District footprint may be from the northern edge of the Port of Coupeville boundary (Mark St. in Rolling Hills) to the southern edge of the Deception Pass bridge. Will a B & O tax cover the dredging? The B&O tax would cover debt payments on a 20 year note at 4% interest. Debt payment = $800K. B&O Tax = about the same as the annual payment. We will use the $360K current debt payment that will no longer be needed after December 2025. Example of borrowing costs: Borrowing $11,000,000. For each $1,000,000 borrowed at 4% on a 20-year semi-annual payment loan = $73,112 annual debt payment. $73,112 x $11 million = $804,22 The interest rate is low because municipal debt is tax exempt Mayor Pro Tem Hizoin and Councilmembers Armes, Woessner, Stucky, and Wiegenstein provided their respective questions and comments. Staff will return to request further direction from the Council at a future meeting. PUBLIC WORKS a. Purchasing Policy and Procedure Manual Central Services Manager Place provided background information and potential updates to the City’s purchasing policies and procedures manual. She explained the manual is designed to assure the resi- dents, the City Council, and City administrative staff that the City of Oak Harbor is receiving maximum value for each tax and utility dollar expended and assure fiscal responsibility in the procurement process. The manual is designed to help city staff with the inclusion of “best practices,” user-friendly flow charts, and checks and balances. It was last updated May 17, 2022. The objectives of updates to the manual are to: Increase authority level to be more effective and efficient. Workshop Meeting Minutes November 20, 2024 Page 8 of 9 Standardize authority amounts. Update policies and procedures to align with new legislative outcomes. Update the grant process. Manager Place reviewed the types of procurement utilized by the City: Public Works Goods, Equipment, Supplies, and Materials Purchased Services Personal Services Professional Services (Architecture and Engineering) Manager Place reviewed the current authority levels for purchases for all areas and the proposed au- thority levels and amounts. She also reviewed legislative key updates to procurement and contracting and closed with an overview of the grants process. She was joined by Deputy City Administrator Gold- man and Fire Chief Anderson in responding to questions. Councilmembers Stucky, Woessner, and Armes provided their respective questions and comments. ADJOURN There being no further business, Mayor Wright adjourned the workshop at 4:07 p.m. Certified by Julie Nester, City Clerk Workshop Meeting Minutes November 20, 2024 Page 9 of 9