City Council

Oak Harbor City Council Regular Meeting Minutes January 7, 2025 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. and wished all a happy new year. 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 – Mayor Wright noted no responses had been received as of yet to the City Clerk’s an- nual request to sign up for providing invocations. Pledge of Allegiance – Led by Councilmember Stucky at the request of 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 Public Works Director Steve Schuller Councilmember Eric Marshall Police Chief Tony Slowik Councilmember Christopher Wiegenstein Police Captain Kevin Barton Councilmember Barbara Armes Fire Chief Travis Anderson Councilmember James P. Marrow Central Services Manager Sandra Place Accounting Manager Ashley Ramos Grants Administrator Wendy Horn Communications Officer Magi Aguilar Executive Services Coordinator Macalle Finkle City Clerk Julie Nester Also in attendance: City Attorneys Hillary Evans and Kristin Husebye of Kenyon Disend, PLLC EXCUSE ABSENT COUNCILMEMBERS Mayor Wright greeted all in attendance. He noted all members of the Council were present with Coun- cilmembers Woessner and Wiegenstein attending remotely. 1. APPROVAL OF AGENDA Mayor Wright requested any changes to the agenda. Hearing none, the agenda was approved as pre- sented. 2. PRESENTATIONS Regular Meeting Minutes January 7, 2025 Page 1 of 9 Community Presentations – i. Oak Harbor Public Schools Superintendent Michelle Kuss-Cybula. Superintendent Michelle Kuss-Cybula presented information regarding the upcoming school levy and outlined the uses of requested funds. She explained this is a replacement levy and provided a break- down of where school funding is obtained from, with 76% being State of Washington funding, 11% begin Federal funding, and 12% local funding. Superintendent Kuss-Cybula explained the local levy provides funding for each school, including: Health & Safety – School nurses, mental health counselors and school safety equipment Academic Support – Special education, Paraeducators, academic counselors, and smaller class sizes Student Programs - Athletics, intramurals and visual and performing arts Technology – Chromebooks, classroom technology, and curriculum software. Hard copy books are no longer utilized. The vote on the levy is scheduled for February 11, 2025. ii. Oak Harbor Main Street Association. Annual Presentation New Main Street Association Executive Director Cheryl Grehan presented the annual report. She thanked the City for its past and continuing support of the Association and their tax incentive program. Executive Director Grehan stressed the importance of a thriving downtown and the Association’s four- point approach to assist in this via Economic Vitality, Design Promotion and Organization, and Out- reach. She highlighted some of the Association’s major projects of the past year, including: Serendipity Lane Lighting and banners project Pop-up Plaza mural, stage, and pergolas Executive Director Grehan noted the Association plans to host more than thirty events in 2025 and looked forward to continued collaboration with community stakeholders and creating community volun- teer opportunities. In closing, she reviewed the Association’s 2024 revenues and expenses and pro- vided a video of activities accomplished. 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 Destry McKenzie of Oak Harbor re-addressing his comments from the November 19, 2024 and December 17, 2024 Council meetings regarding the Mayor’s fence and code compliance. The comment 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. Regular Meeting Minutes January 7, 2025 Page 2 of 9  1. Jack Schwab of Oak Harbor spoke as the leader of Citizens for Better Schools in support of the school levy and the programs it funds and to state they would appreciate an endorsement by the City Council. Hearing no one else 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 December 17, 2024 b. Approval of Payroll and Accounts Payable Vouchers c. Northwest Sportsmen’s Association Agreement Mayor Wright called for any changes to the consent agenda. Hearing none he called for a motion for approval. Motion: Mayor Pro Tem Hizon moved to approve the consent agenda. Councilmember Marrow se- conded the motion, which passed unanimously. 5. MAYOR & COUNCIL COMMENTS a. Mayor’s Comments Mayor Wright provided the following comments: • Drinking Water Sampling: NAS Whidbey Island is conducting drinking water sampling near the Area 6 Landfill, Ault Field and Outlying Landing Field Coupeville during the month of January. This sampling is for certain substances, which may be present in these drinking water wells due to past use and/or past disposal of materials on the base. The Navy is working in partnership with the United States Environmental Protection Agency Region 10, Washington State Department of Ecology, Washington State Department of Health, and Island County Public Health Department The Navy has notified select property owners in the sampling areas that have not been previously sampled by the Navy or to resample certain drinking water wells. The Navy mailed letters to property owners requesting permission to sample their drinking water wells. The Navy also mailed postcards to tenants of these properties to notify current residents that the property owner’s permission to sample has been requested. This sampling is at no cost to the property owner or tenant. Property owners may schedule a drinking water well sampling appointment by calling and leaving a message at 1-844-WHI-PFAS (1-844-944-7327), or by emailing naswi.pfas@jacobs.com. Please in- clude your name, property address, and telephone number. • Joint Meeting with the Island County Board of Commissioners: The Oak Harbor City Council and myself and members of City staff will hold a special joint meeting with the Island County Board of Commissioners on January 14th from 2:00-3:30 p.m. at the Commissioners’ Hearing Room in Coupe- ville. The purpose of the joint meeting is to continue discussions regarding the Oak Harbor Urban Growth Area (UGA) as part of comprehensive planning. • Pathways to Stability Task Force: I am initiating a task force to address homelessness in our com- munity. This dedicated group will work to better understand the impacts on people experiencing home- lessness in Oak Harbor and the available resources available in the greater Oak Harbor community. Regular Meeting Minutes January 7, 2025 Page 3 of 9 The Pathways to Stability Task Force represents a collaborative effort among city leaders, service pro- viders, and community advocates. We will work to review recommendations, identify actionable solu- tions that align with our shared vision for stability and support, and develop a Strategic Plan of Action while at the same time ensuring a safe and vibrant community. Together, we can create pathways that lead to hope, resilience, and opportunity for everyone in Oak Harbor. The first meeting of the Pathways to Stability Task Force will be held on Wednesday, January 15 from 3-5 p.m. in City Hall Council Chambers. • Association of Washington Cities (AWC) Action Days – The AWC will host Action Days in Lacey, February 19-20. Held annually during the legislative session, this event for city officials includes up- dates on state legislative priorities, information panels, and an opportunity to meet with legislators about our City’s legislative priorities at the state Capitol in Olympia. Here are a few phots from last year’s Action Days. • School Board Appreciation Month: January is School Board Appreciation Month. Please consider taking a moment to recognize and thank those who serve on our area school boards for the important work they do in promoting the education of our youth. • Leadership Whidbey: It was my pleasure to speak to the newest class participating in Leadership Whidbey. Each fall, Leadership Whidbey selects 20 participants representing the private, public, and non-profit sectors across Whidbey Island for a seven-month intensive leadership development pro- gram. The program’s goal is to create a network of leaders whose increased awareness and commit- ment to service will energize and shape Whidbey Island’s future. Councilmember Wiegenstein serves on the advisory group for this Leadership Whidbey, and I highly recommend people consider applying for the program. • Upcoming Events: There are a number of upcoming events I will be attending. Please make sure to follow the City on social media for an up-to-date listing. This week we are introducing a new opportunity to engage and to ask me questions over coffee with me, otherwise known as “The Wright Blend”. The first one will be held at Mad Batter Bakehouse on January 17th at 10 a.m. Come say hello, give input and ask questions. • Thank you from the Oak Harbor Mainstreet Association: The City received a thank you from the Oak Harbor Mainstreet Association for the installation of the Serendipity Lane benches. The first bench was sponsored by Jim and Margaret Livermore. The other two benches are available for sponsorship. Con- tact the Mainstreet Association for details. Thank you, again, to Margaret for all of her hard work as Executive Director of the Main Street Association. • City Office Closure: City offices and facilities will be closed on Monday, January 20th in observance of Martin Luther King, Jr. Day. Garbage pick-up for that day will move to the next day, Tuesday, January 21st. b. Councilmembers Mayor Pro Tem Hizon provided her respective comments, noting it was the time of year to discuss the annual trip to the National League of Cities Conference and to meet with legislators in Washington D.C. Mayor Wright noted this was included on an upcoming agenda. 6. PUBLIC HEARINGS & MEETINGS - None Regular Meeting Minutes January 7, 2025 Page 4 of 9 7. ORDINANCES & RESOLUTIONS a. Resolution 25-01: Updates to Boards and Commissions Procedures – Planning Commis- sion Bylaws b. Ordinance No. 2015: Repealing Oak Harbor Municipal Code Chapter 18.04 “Planning Com- mission” and adopting a new Chapter 18.04 “Planning Commission”. City Administrator Combs reviewed the two related items for the Council. The request to make updates to procedures for Boards, Commissions, and Committees came from the Council. Potential changes were discussed at the October 23, 2024 Council workshop. Staff drafted changes and sent them to the City Attorney for review. The City attorney identified additional modifications. The resolution and ordi- nance focused on changes for the Planning Commission as there is a need to make appointments to that Commission to assist with the Comprehensive Planning process. Resolution 25-01 would update the Planning Commission Bylaws to add interview requirements and provisions and rules for remote attendance at meetings. It would also modify meeting dates to accom- modate the City Council’s 2025 calendar and the move of Council workshops from Wednesdays to Tuesdays. Ordinance No. 2015 would add the remote attendance requirements and updates to avoid bias infor- mation in applications. City Administrator Combs reviewed the proposed interview process, which would add interview ques- tions from the Mayor or his designee. These would include standard questions, and any additional questions deemed necessary based on feedback and /or suggestions from the staff liaison for the Commission. She also reviewed the added orientation process for the staff liaison or designee to meet with the new member to review training requirements, resources, and board updates. If approved by the Council, these updates would be rolled out for the City’s other advisory groups moving forward. Mayor Wright confirmed no public comments had been received on the proposed ordinance amend- ment and resolution. He invited comments from those present. Hearing none, he turned to the Council for their comments. Councilmembers Stucky, Woessner, and Mayor Pro Tem Hizon provided their respective questions and comments. Motion: Mayor Pro Tem Hizon moved to approve Resolution 25-01: Approving revised Bylaws for the Planning Commission. Councilmember Marrow seconded the motion, which passed unanimously. Motion: Mayor Pro Tem Hizon moved to adopt Ordinance No. 2015: repealing Oak Harbor Municipal Code Chapter 18.04 “Planning Commission: and adopting a new Chapter 18.04 “Planning Commis- sion”, providing for severability and establishing an effective date. Councilmember Marrow seconded the motion, which passed unanimously. 8. CONTRACT & AGREEMENTS a. Extension of Professional Services Agreement with Olbrechts and Associates Development Services Director Kuhl reviewed the Agreement for Hearing Examiner Services. He noted Olbrechts & Associates, PLLC has provided the City with excellent hearing examiner services since January 2024. Prior to the original Professional Services Agreement staff requested proposals from four firms listed on the MRSC roster for hearing examiner services. Regular Meeting Minutes January 7, 2025 Page 5 of 9 Olbrechts & Associates, PLLC has extensive hearing examiner and other land use experience and is well qualified to fill this role. The current level of activity is 4-5 hearings per year. The current budget shows $20,000 per year for hearing examiner services and this should be sufficient. The proposed Agreement will be effective until January 15, 2026 if approved. 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 questions or comments from the Council. Motion: Councilmember Stucky moved to approve Amendment No. 1 to the Professional Services Agreement with Olbrechts & Associates, PLLC for hearing examiner services, to extend services an- other year until January 15, 2026. Mayor Pro Tem Hizon seconded the motion which passed unani- mously. b. Professional Services Agreement, Oak Harbor Main Street Association for the 2025 Business & Occupation Tax Incentive Program Grants Administrator Horn reviewed the Agreement and provided background information. The State of Washington began the Main Street program in 2005. The City chose to participate in the Washington Main Street Tax Credit Program in order to provide funding for the Oak Harbor Main Street Association (OHMSA) on December 15, 2015 per Resolution 15-44. Following the resolution, upon appointment of a permanent Board of Directors and Executive Director, the City executed a Professional Services Agreement (PSA). Since 2015, the City has participated in the tax credit program and provided annual funding to OHMSA through a PSA. In 2019, the City increased its contribution to a maximum of $95,000. In 2021, the State of Washington increased the allowable amounts for contribution and tax credits from $133,333.33 and $100,000 respectively to $213,333.33 and $160,000. The Statewide cap on the tax credit also in- creased from $2.5 million to $5 million. This year's agreement has no changes from prior agreements except for dates and names. Similar to prior years, staff is recommending that the City pledge a maximum contribution of $95,000 to OHMSA. The City will receive a maximum tax credit of $71,250, resulting in a reduction in excise tax liability for the following year. The program provides an opportunity for other organizations and businesses to contribute and receive a tax credit as well. The maximum contribution of $95,000 is included in the 2025-2026 biennial budget and the maximum tax credit of $71,250 (75% of contribution) will be included in the 2026 and 2027 budgets. On February 5, 2024, the City Council approved the prior annual PSA with the OHMSA as part of the Washington Main Street Tax Program. Similarly, the City Council has approved prior agreements dating back to 2015. 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 questions and comments. Mayor Pro Tem Hizon and Councilmembers Marrow and Woessner provided their respective questions and comments. Regular Meeting Minutes January 7, 2025 Page 6 of 9 Motion: Councilmember Marrow moved to approve the City enter into a Professional Services Agree- ment with the Oak Harbor Main Street Association as part of the Washington State Main Street Tax Credit Incentive Program. Councilmember Woessner seconded the motion, which passed unani- mously. 9. OTHER ITEMS FOR CONSIDERATION Firehouse Subs Public Safety Foundation Grant Application Grants Administrator Horn reviewed the application request. Firehouse Subs Public Safety Foundation’s mission is to “impact the lifesaving capabilities, and the lives, of local heroes and their communities.” The Foundation provides grant funding for lifesaving equipment, prevention education, scholarships and disaster relief. It also supports members of the mil- itary through programs and services to enhance quality of life for veterans. Grant applications are accepted on a quarterly basis. The next window for application is January 9, 2025. The Oak Harbor Fire Department (OHFD) would like to apply for funding to purchase a new highway vehicle stabilization kit and multi-force basic air lifting bag kit. Grants Administrator Horn reviewed the eligibility requirements If awarded, the OHFD will receive $23,046.09 in funding from the Firehouse Subs Public Safety Foundation which is not currently budg- eted in the 2025 Fire Department's budget. A budget amendment will be presented to the City Council for approval. There is no City match required for this grant. Fire Chief Anderson also provided infor- mation. Mayor Wright confirmed no public comments had been received. Hearing none from those present, he called upon the Council for their comments. Councilmember Stucky and Mayor Pro Tem Hizon provided their respective questions and comments. Motion: Councilmember Stucky moved to approve the submission of a Firehouse Subs Public Safety Foundation grant application for vehicle stabilization and air lifting bag equipment. Councilmember Mar- shall seconded the motion, which passed unanimously. c. Washington Dept. of Commerce Justice Assistance Grant Application Grants Administrator Horn reviewed the application request. She explained these grants come up ran- domly and with a very short turnaround time in which to submit an application. The Washington Department of Commerce administers the Federal Edward Byrne Memorial Justice Assistance Grant (JAG) program for the state. The JAG program has nine priority areas. From those nine, Washington States’ JAG Advisory Committee developed a strategic plan and chose three purpose areas for the state: • Planning, Evaluation and Technology Improvement • Crime Victim Programming, Support and Advocacy • Community Safety Enhancement and Law Enforcement Support Under the Community Safety Enhancement and Law Enforcement Support Priority Area, the Oak Har- bor Police Department (OHPD) will focus on crime prevention strategies that will include, among other things, direct support of local businesses through the distribution of video surveillance devices, com- munity education and relationship building and increasing community trust and engagement through the Pathways to Stability Task Force. Regular Meeting Minutes January 7, 2025 Page 7 of 9 The OHPD may receive up to $275,000 in funding from the Washington Department of Commerce which is not currently budgeted in the 2025 Police Department's budget. If awarded, a budget amend- ment will be presented to the City Council for approval. There is no match required for this program. Mayor Wright confirmed no public comments had been received. Hearing none from those present, he called upon the Council for their comments. Councilmembers Marshall and Marrow provided their respective questions and comments. Motion: Councilmember Marshall moved to approve the submission of a Washington Department of Commerce Justice Assistance Grant application for crime prevention strategies and community rela- tionship building efforts. Mayor Pro Tem Hizon seconded the motion, which passed unanimously. BREAK – Mayor Wright called for a five-minute break at 6:45 p.m. The meeting resumed at 6:50 p.m. 10. REPORTS & DISCUSSION ITEMS a. 2023 Audit Results Information Session Deputy City Administrator and Finance Director Goldman provided the report and explained that all cities in the State of Washington are required to be audited by the Washington State Auditor. The auditors were here during the months of October – December. No action was requested of the Council. • The City's overall financial condition improved during 2023, as compared to 2022. • City of Oak Harbor assets exceeded its liabilities at the close of the 2023 fiscal year by $197.95 million (net position). Of this amount, $70.2 million (unrestricted net position) may be used to meet the City's ongoing obligations to its citizens and creditors. • Reported net position increased $12.03 million. The overall net position of governmental activities increased $8.32 million, or 9.75%, during 2023. Net position of business-type activities increased $3.71 million, or 3.69%, during 2023. There were two connected issues that affected multiple parts of the 2023 financial statements that staff fixed during the audit. This led to the need to reallocate cash and investments between the various funds. It also led to fund balance in some of the non-major governmental funds being classified as “Unassigned” when it should have been classified as either “Restricted” or “Committed” by approxi- mately the same amount. The overall impact of this was that the regular cash line items (Cash & Cash Equivalents) on the finan- cial statements was understated, the Restricted cash line items was overstated and Restricted Invest- ments line items were added. Due to the removal of the large balance threshold, the allocation has included all funds which changed the amount allocated for investments between all the funds. The outcome of these changes was that numbers moved between rows and did not change the City’s overall reported total assets, total liabilities, or total net position; the three primary areas of a govern- ment’s balance sheet. For the benefit of Oak Harbor residents, this matter does not represent any misuse of public funds; rather, it represents a reporting issue that has been corrected. The implemen- tation of the new Enterprise Resource Planning system should facilitate the development of the annual financial report from 2025 onward. Deputy City Administrator Goldman provided an in-depth review of the City’s Fund Balance Classifica- tions, Investments Allocation and the recommendations given by the State Auditor’s Office who Regular Meeting Minutes January 7, 2025 Page 8 of 9 indicated that they would like the City to allocate the investments out to all funds and not use a large balance threshold. This has been corrected and provided to the SAO. Staff researched the issue with the system defaulting to regular cash and investments and came up with a solution to change that default setting going forward. The City of Oak Harbor thanks the State Auditor’s Office (SAO) for the open communication throughout the fiscal year 2023 audit as well as the opportunity to respond to the audit finding. The City agrees with the Auditor’s finding and are thankful for the opportunity to correct the financial statements. For the benefit of Oak Harbor residents, this matter does not represent any misuse of public funds. Rather, it represents a reporting issue involving the classification of fund balance and the allocation of investments between the various funds which have been corrected. The City’s total assets, total liabil- ities, and total net position were not affected by the update. Mayor Wright and Councilmember Stucky provided their respective questions and comments. 11. EXECUTIVE SESSION a. Executive Session per RCW 42.30.110 (1) (b) to consider the selection of a site or the acquisi- tion of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price. Mayor Wright noted that at this time the Council would take a short break and then move into an exec- utive session per RCW 42.30.110 (1) (b) to consider the selection of a site of the acquisition of real estate by lease or purchase as pertains to price. Mayor Wright noted the anticipated duration of the executive session was 15 minutes and that the City Clerk would announce any extensions by the City Council. Mayor Wright explained executive sessions are not open to the public and that action might or might not be taken upon return to the open session of the meeting. The Council entered executive session at 6:57 p.m. for a fifteen-minute period to 7:12 p.m. At 7:12 p.m. the Council announced an extension of the executive session for an additional ten minutes to 7:22 p.m. At 7:22 p.m. the Council announced another extension of the executive session for five additional minutes to 7:27 p.m. At 7:27 p.m. the Council announced an additional extension of the executive session for five more minutes to 7:32 p.m. At 7:32 p.m. the Council announced an additional extension of the executive session for two more minutes to 7:34 p.m. At 7:34 p.m. the Council came out of executive session and resumed the open session of the meeting Mayor Wright noted no action would be taken at this time regarding the real estate matter discussed. ADJOURN There being no further business, Councilmember Marshall moved to adjourn the meeting, seconded by Councilmember Marrow. The vote on the motion was unanimous, therefore the meeting was ad- journed at 7:35 p.m. Certified by Julie Nester, City Clerk Regular Meeting Minutes January 7, 2025 Page 9 of 9