City Council

Oak Harbor City Council Workshop Meeting Minutes July 22, 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 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 Public Works Director Steve Schuller Councilmember Bryan Stucky Parks and Recreation Director Brian Smith Councilmember Eric Marshall Police Chief Tony Slowik Councilmember Christopher Wiegenstein Fire Chief Travis Anderson Councilmember Barbara Armes Principal Planner Rajesh Cac Kamak Councilmember James P. Marrow Harbormaster Alyce Henry Grants Administrator Wendy Horn Executive Services Coordinator Macalle Finkle Communications Officer Magi Aguilar City Clerk Julie Nester Also in attendance: City Attorney Hillary Evans and Robert Zeinemann of Kenyon Dis- end, PLLC MAYOR Mayor Wright welcomed all in attendance. Mayor Pro Tem Hizon and Councilmember Wiegenstein were in attendance remotely. 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 were no action items on the agenda today. Mayor Wright noted there were a limited number of topics on today’s workshop agenda in order to spend more time reviewing progress on the 2025 Comprehensive Plan Update and to ask the Coun- cil for direction regarding the City of Oak Harbor Marina. He reported that earlier today he had met with the City’s Grants Administrator, Wendy Horn, who reviewed that the City has submitted $8,377,210 in submitted grants awaiting notification and year-to-date the City has been awarded $2,979,820 in grants. Between now and the end of the year the City will have submitted applications for an additional $24,003,875 in grants, with $21,000,500 of those being submitted specifically for the Marina, with the City awaiting the results. Mayor Wright noted he wanted to publicly acknowledge Grants Administrator Horn for her great work. Workshop Meeting Minutes July 22, 2025 Page 1 of 15 CITY COUNCIL Mayor Wright invited Councilmembers to provide any updates on the City’s boards, commissions or committees on which they serve as a Council liaison. Councilmembers Marrow and Stucky provided their respective updates. Councilmember Marrow re- ported that Island Transit is in collective bargaining with their drivers with wages being a point of discussion. He noted other transit agencies are also facing cost and salary issues. Councilmember Stucky reported that Island County Tourism is working with Island County’s attorney on updating their interlocal agreements. They hope to have these to area municipalities by the end of the year for review and approval. Other Council Comments Councilmember Armes provided her respective comments. She reported she had come across an- other hot dog vendor food truck from Coupeville and hoped they would connect for area events. CITY ADMINISTRATOR a. Monthly Departmental Reports Mayor Wright noted that in the interest of providing additional time for the other agenda topics, he has asked City Administrator Combs not to present her report today, which was included in the meeting packet. Instead, she will respond to any questions from the Council as she receives them. DEVELOPMENT SERVICES – a. 2025 Comprehensive Plan Major Update - This item was moved in the agenda to follow the Finance and Parks and Recreation Departments update for the City of Oak Harbor Marina FINANCE & PARKS AND RECREATION a. Marina Update Deputy City Administrator and Finance Director Goldman provided the update along with Parks and Recreation Director Smith, Harbormaster Henry, and consultant Bill Gerkin of Moffatt & Nichol, who all participated in responding to questions. Deputy City Administrator and Finance Director Goldman provided a detailed review of the Marina components project costs and options for funding them. He noted staff was seeking Council direction in order to move forward with an action item for the August 6, 2025 Council meeting. This was a follow-up from the Council meeting of May 6, 2025, at which staff presented, and the Council dis- cussed the potential utilization of a Local Business & Occupation (B&O) Tax, other revenue options, and Marina projects including needed dredging and repair or replacement of the breakwater. Deputy City Administrator and Finance Director Goldman noted there were three general areas of the presentation today: an overview, Marina projects, and revenue options. He noted for all projects all figures were rounded. Those details applicable to all projects were: • Fish window – Mid-August through Mid-February – representing the time during which work can be done. • Advised to book contractors by Spring. • Costs provided by Moffatt & Nichol and include an adjustment of 4.5% annual inflation. Workshop Meeting Minutes July 22, 2025 Page 2 of 15  • Dock and Breakwater costs include an additional 15% for unknown future mitigation costs. The tables below were displayed with details for the maximum dredging, minimum dredging, mainte- nance dredging, and breakwater options, as well as an option for closing the Marina: Marina Projects: Dredging - Estimated Cost: $10 Million to $13.2 Million (in 2026 dollars) Construction Start: 2026 Permitting time: Expected in April 2026 Estimated Useful Life: 10 to 13 years Suggested Loan/Bond Term: 20 years (if debt is included with Breakwater or Dock. 15 years for a stand-alone) Estimated Annual Debt Service: $630,000 to $880,000 at 20 years; $750,000 to $1.05 Million at 15 years Details: • $993,921 unrestricted net position is available in the Marina Fund as of the end of 2024. The City has a $1,000,000 grant agreement with Island County for dredging only. • Four dredging options were presented to the Council ranging in cost from $9.72 Million to $12.36 Million (in 2025 dollars). On February 20, 2024, the Council moved to pursue the maximum option as the preferred option. The lowest option of $10 Million (in 2026 dollars) can be performed as an alternative. • To extend the life of the dredging an additional 10 years, maintenance dredging should be done approximately 10 years after dredging at an estimated additional cost of $5.5 Million (in 2036 dollars). The annual cost of borrowing = $660,000 (10 year) or $410,000 initial annual if put in reserve for 10 years. Workshop Meeting Minutes July 22, 2025 Page 3 of 15 Deputy City Administrator and Finance Director Goldman reviewed the following chart for dredging and breakwater funding using current funds. He explained the unrestricted funds were the remaining portion of the net position after accounting for restricted (external restrictions) amounts and net in- vestment in capital assets. Deputy City Administrator and Finance Director Goldman next reviewed the options for the Break- water as follows: Breakwater: Option 1: Breakwater Replacement - Estimated Cost: $12.3 Million (in 2027 dollars) Construction Start: 2027 Permitting time: 18 to 24 months Estimated Useful Life: Over 40 years Suggested Loan/Bond Term: 30 years Estimated Annual Debt Service: $760,000 Details: • This is for the complete replacement of the Breakwater. • Range $8.3 Million to $10.7 Million plus 15% for unknown future mitigation costs ($10.7 Mil- lion used in calculations). • $661,641 unrestricted net position available in Marina Fund as of the end of 2024. Breakwater: Option 2: Breakwater Repair and Renovation – Estimated Cost $5.6 Million (in 2027 dollars) Construction Start: 2027 Permitting time: 12 to 24 months Estimated Useful Life: 15 to 20 years Suggested Loan/Bond Term: 20 years Estimated Annual Debt Service: $390,000 Details: • This alternative option is for the renovation of the breakwater rather than a complete replace- ment of it. While the costs are estimated to be lower, the estimated useful life will be lower as well. • $661,641 unrestricted net position available in Marina Fund as of the end of 2024. Workshop Meeting Minutes July 22, 2025 Page 4 of 15 Deputy City Administrator and Finance Director Goldman next reviewed the options for the Docks as follows: Docks: Option 1: Dock Reconfiguration and Redevelopment – Estimated Cost $34.2 Million (in 2028 dollars) Construction Start: 2028 Permitting time: 18 to 24 months Estimated Useful Life: Over 40 years Suggested Loan/Bond Term: 30 years Estimated Annual Debt Service: $2.235 Million Details: • Complete demolition and redevelopment of the Marina to meet the needs of today’s boating public. • Cost may be lower if full dredging is completed. Docks: Option 2: Dock Repair and Renovation – Estimated Cost $9.3 Million (in 2028 dollars) Construction Start: 2028 Permitting time: 18 to 24 months Estimated Useful Life: Over 40 years Suggested Loan/Bond Term: 30 years Estimated Annual Debt Service: $2.235 Million Details: • Complete demolition and redevelopment of the Marina to meet the needs of today’s boating public. • Cost may be lower if full dredging is completed. Deputy City Administrator and Finance Director Goldman also reviewed the potential effectiveness of installing a rock structure as an alternative to maintenance dredging. Details: • Based on the June 30, 2025 memo from Moffatt & Nichol, a Rock Structure “extending out from the Oak Harbor shoreline west of the Marina…would not provide a functional or cost- effective alternative to maintenance dredging at the marina.” • A Rock Structure “would have limited effect capturing suspended silts or clays causing sedi- mentation in the marina basin. In fact, a shore perpendicular structure could potentially make shoaling slightly worse within the marina by constricting, redirecting and accelerating currents carrying suspended fine grain sediments.” • “The proposed structure was briefly discussed with U.S Army Corps of Engineers (USACE). If a Tribe objects to a project, the USACE cannot issue a permit.” Deputy City Administrator and Finance Director Goldman lastly reviewed the costs associated with the closing of the Marina as follows: Marina Closing: Estimated Cost $6.0 Million (in 2026 dollars) Construction Start/Permitting time: To Be Determined Suggested Loan/Bond Term: 10 years Estimated Annual Debt Service: $595,000 Details: • Estimated costs include in-water activities only. These figures do not include the cost of any upland work, if required. • $993,921 unencumbered net position and $511,086 operating reserve available. • Potential of mitigation credits recapture. The City could enter into an agreement with another Workshop Meeting Minutes July 22, 2025 Page 5 of 15  entity who could use the credits to offset the impact of their work. The former Marina basin would become a restoration site and could not be developed in the future. • Due to no capital asset being created, the debt must be considered as taxable debt at an added cost of up to 2% Deputy City Administrator and Finance Director Goldman provided a review of revenue options with the following chart: Revenue Options Amount Type Detail Max. Avg. Unit Tax #payors Monthly Cost Base Retired Debt Svs. $363K Recurring Reduction to exp. N/A N/A N/A N/A Property Tax Levy Up to $3.24M Recurring 9-year max if used for $36.25 Home Broad 6,835 Lid Lift to pay debt Property Tax Excess Up to $75.8M One-time Debt; 20-year $66.91 Home Broad 6,835 Bond Levy Sales Tax N/A Recurring None for Marina N/A N/A Very Data Broad N/A Utility Tax Each 1% = $250K Recurring Councilmanic taxes only $2.00 Customer Broad 6,288 B&O Tax $825K to $1.68M Recurring $100K to $5M $42.00 to Business Narrow 26 to threashold $637.17 524 Marina Dredging Fee $250K (2026 est.) Recurring October 2025 Rates $69.12 Customer Narrow 418 (Existing) 32 foot Marina Dredging Fee Up to $630K Recurring Dredging Max -------> $174.26+tax to Customer Narrow 418 (Additional) 32 ft. Up to $380K Dredging Min --------> $105.11+tax Marina Beakwater Up to $760K Recurring Breakwater Replace --> $210.22+tax Customer Narrow 418 Fee (New) 32 ft. Up to $390K Breakwater Repair ---> $107.88+tax Port District - New Up to $9.5M Recurring Property Tax --------> $50.17* Home Broad 16,063 Up to $53M One-time Debt 20-year --------> $20.24* Port District - Up to $13.2M Recurring Property Tax --------> $33.43* Home Broad 25,557 Expansion Up to $83.8M One-time Debt 20-year --------> $20.25* MPD Up to $5.3M Recurring Property Tax --------> $27.87* Home Broad 16,063 Up to $176.5M One-time Debt 20-year --------> $67.47* Grants Up to $11.5M One-time USDOT N/A Home N/A 2 Up to $10M One-time USEDA Each revenue option was presented in further detail as follows: Property Tax Levy Lid Lift – Potential Amounts: Up to $3.24 Million (in 2025 dollars) Approval Method: Voter (50%+1) (Can be included on the ballot for any election, with some exceptions) Term: Permanent or Temporary Restrictions: • Any lawful governmental purpose; unless the ballot language states a particular pur- pose(s). • If used to repay debt, it may not exceed nine years. Direct Payer: Property owner Potential Impact: Property owner, tenants, or customers References: Revised Code of Washington (RCW) 84.55.050, Municipal Resource and Ser- vices Center (MRSC) Revenue Guide Details: • If used to repay debt, the maximum may not exceed nine years. • Up to 0.9755 millage rate (2025). Property Tax Excess Bond Levy – Potential Amounts (see chart below): Approval Method: Voter (60%+1) (Any election) with 40% validation of last General election. Term: Length of bond Restrictions: Capital purposes only, cannot be used for replacements; see table below Workshop Meeting Minutes July 22, 2025 Page 6 of 15  Direct Payer: Property owner Potential Impact: Property owner, tenants, or customers References: RCW 84.52.050, 39.36.020, 35.42.200, Washington State Auditor’s Office Budgeting, Accounting and Reporting System (BARS) Chapter 3.10.5 Details: Restrictions Maximum Amount* Any lawful governmental capital pur- $75.8 Million pose Water, Sewer, and Electricity (when $84.3 Million owned and operated by the City) Acquiring and developing open space, parks facilities, $84.3 Million and facilities associated with economic development * Figures are additive, for a total of $244.4 Million Annual Debt Service for $75.8 Million bond = $5.5 Millon paid by property owners through Excess Property Tax Levy Available Sales Tax (for named uses only, none for the Marina) - Potential Amounts: $500,000 to $600,000 (2025) Depends on sharing Approval Method: Voter (50%+1) (Primary or General) Term: See chart below Restrictions: Generally for the named uses Direct Payer: Consumers, Tourists, Businesses, or Governments Potential Impact: Direct Payers and their customers References: Legislative reports, MRSC Revenue Guide Details: Utility Tax – Potential Amounts: See chart below Approval Method: Councilmanic for City Utilities, Voter (50%+1) for others (any election) Term: No expiration date Restrictions: Any lawful governmental purpose Direct Payer: Utility customer Potential Impact: Utility customer or their customers References: RCW 35.21.870, MRSC Revenue Guide Details: • No rate limit for water, sewer, solid waste, stormwater • 6% councilmanic limit for electric, gas, steam, and telephone. Voter approval needed to exceed one percent. Workshop Meeting Minutes July 22, 2025 Page 7 of 15 * Includes 0.25% Arts Fund. ** Not including Arts Fund Amount Business & Occupation (B&O) Tax – Potential Amounts: $825,000 to $1.68 Million (in 2025 dollars) Approval Method: Councilmanic / Voter (50%+1) if retail tax rate exceeds 0.2%. Term: No expiration date Restrictions: Any lawful governmental purpose Direct Payer: Business owners Potential Impact: Business owners or their customers References: RCW 35.21.710, MRSC Revenue Guide Details: • State Minimum Gross Tax Receipt Exemption = $20,000 • Staff capacity considerations Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Business Tax Threshold $ 5,000,000 $ 2,500,000 $ 1,000,000 $ 750,000 $ 500,000 $ 250,000 $ 100,000 (gross annual receipts) Number of Business 26 59 147 197 243 341 524 Applicable Percent of all Oak Harbor 1.1% 2.4% 6.1% 8.1% 10% 14% 22% Business Applicable Retail Rate 0.002 0.002 0.002 0.002 0.002 0.002 0.002 Services Rate 0.002 0.002 0.002 0.002 0.002 0.002 0.002 Wholesale Rate 0.002 0.002 0.002 0.002 0.002 0.002 0.002 Manufacturing Rate 0.002 0.002 0.002 0.002 0.002 0.002 0.002 Gross Annual Receipts $ 430.5M $ 525.7M $ 660.6M $ 701.2M $ 750.9M $ 817.3M $ 875.6M over Minimum Estimated Annual $ 825,488 $ 999,501 $ 1,257,263 $ 1,336,523 $ 1,434,022 $ 1,564,706 $ 1,679,929 Revenue Generated Maximum $ 138,871 $ 143,871 $ 146,871 $ 147,371 $ 147,871 $ 148,371 $ 148,671 Minimum $ 30 $ 19 $ 2 $ 6 $ 14 $ 1 $ 1 Median $ 7,646 $ 2,482 $ 1,544 $ 1,225 $ 1,121 $ 1,015 $ 504 Retail Revenue $ 641,844 $ 749,276 $ 878,130 $ 914,165 $ 956,089 $ 1,013,483 $ 1,067,595 Services Revenue $ 136,942 $ 175,249 $ 277,457 $ 315,682 $ 365,216 $ 430,055 $ 483,910 Wholesale Revenue $ 16,701 $ 39,976 $ 63,676 $ 68,176 $ 72,690 $ 78,641 $ 83,894 Manufacturing Revenue $ 30,000 $ 35,000 $ 38,000 $ 38,500 $ 40,027 $ 42,527 $ 44,530 Marina Dredging Fees – Potential Amounts: Up to $880,000 Approval Method: Council Term: No expiration date Restrictions: Marina Fund Direct Payer: Marina customers Potential Impact: Marina customers References: OHMC 6.36.021 Details: • 2024 Dredging Fee Revenues = $218,958 Workshop Meeting Minutes July 22, 2025 Page 8 of 15  • Estimated increase of $174.26 to cover all annual debt service of Option 1 • Each $100,000 = $27.66 Dredge fee 32 Foot Rates Monthly 12.84% Dredge 12.84% Environ. (after Oct 25 Rates) Moorage SLHT Fee SLHT Comp Total Oct 2025 Rates $ 278.54 $ 35.76 $ 69.12 $ 8.88 $ 8.97 $ 401.27 Up To Full Amt. $ 278.54 $ 35.76 $ 243.38 $ 31.25 $ 8.97 $ 597.90 Increase $ - $ - $ 174.26 $ 22.37 $ - $ 196.63 Pct. Increase 0% 0% 252% 252% 0% 49% Dredging Fee Year per foot 2021 $ 1.03 Jan. 22 - Sept. 23 $ 1.31 Oct. 23 - Sept. 24 $ 1.60 Oct. 24 - Sept. 25 $ 1.88 Oct. 25 - Sept. 26 $ 2.16 Marina Breakwater Fee (currently does not exist) – Potential amounts: Up to $760,000 Approval Method: Council Term: No expiration date Restrictions: Marina Fund Direct Payer: Marina customers Potential Impact: Marina customers References: OHMC 6.36.021 Details: • 2027 Dredging Annual Debt Est. = $760,000 • Increase up to $210.22 to cover full amount of Option 1 32 Foot Rates Monthly 12.84% Dredge Break-water 12.84% Environ. (after Oct 25 Rates) Moorage SLHT Fee Fee SLHT Comp Total Oct 2025 Rates $ 278.54 $ 35.76 $ 69.12 $ - $ 8.88 $ 8.97 $ 401.27 Up To Full Amt. $ 278.54 $ 35.76 $ 69.12 $ 210.22 $ 35.87 $ 8.97 $ 638.48 Increase $ - $ - $ - $ 210.22 $ 26.99 $ - $ 237.21 Pct. Increase 0% 0% 0% ∞ 304% 0% 59% Dredging and Breakwater Fee 32 Foot Rates Monthly 12.84% Dredge Break-water 12.84% Environ. (after Oct 25 Rates) Moorage SLHT Fee Fee SLHT Comp Total Oct 2025 Rates $ 278.54 $ 35.76 $ 69.12 $ - $ 8.88 $ 8.97 $ 401.27 Up To Full Amt. $ 278.54 $ 35.76 $ 243.38 $ 210.22 $ 58.24 $ 8.97 $ 835.11 Increase $ - $ - $ 174.26 $ 210.22 $ 49.36 $ - $ 433.84 Pct. Increase 0% 0% 252% ∞ 556% 0% 108% Marina Rate History 12.84% Dredge 12.84% 32 Foot Rates Monthly Moorage SLHT Fee SLHT Environ. Comp Total Apr 2021 - Dec 2021 205.37 26.37 32.96 4.23 7.97 276.90 Jan 2022 - Mar 2022 205.37 26.37 41.92 5.38 7.97 287.01 Apr 2022 - Sept 2023 211.53 27.16 41.90 5.38 8.21 294.18 Oct 2023 – Sept 2024 230.45 29.59 51.20 6.57 8.46 326.27 Oct 2024 – Sept 2025 252.78 32.46 60.16 7.72 8.71 361.83 Oct 2025 – Sept 2026 278.54 35.76 69.12 8.88 8.97 401.27 Workshop Meeting Minutes July 22, 2025 Page 9 of 15 Marina Revenue and Debt Cost Recovery Dredging Dredge Fee per Year Moorage Dredging Fee Debt Cost foot 2021 $ 798,818 $ 141,067 $ 180,823 $ 1.03 2022 $ 817,212 $ 175,519 $ 363,200 $ 1.31 2023 $ 851,193 $ 185,238 $ 363,200 $ 1.60 2024 $ 948,874 $ 218,958 $ 363,200 $ 1.88 2025* $ 1,027,560 $ 236,463 $ 363,200 $ 2.16 * Estimates Marina Rate Comparables 32' Slip Rates - Rates* Notes Open Moorage Monthly Edmonds $544.22 Middle-width rates used Friday Harbor $465.28 Anacortes $460.00 Des Moines $440.53 Everett $428.67 Skagit La Conner $423.38 South Whidbey $415.25 Cap Sante $ 411.91 Oak Harbor - October $401.27 Oct 2025 - Oct 2026 Rates Oak Harbor - Current $361.83 Oct 2024 - Oct 2025 Rates *Includes taxes and fees Deputy City Administrator and Finance Director Goldman reviewed options for a new port district or for potential expansion of another port district or of the Northwest Metropolitian Park District: New Port District – Potential Amounts: Up to $3.2 Million to $9.5 Million (Property Tax), can borrow up to $53 Million - Approval Steps: • Step 1 – Petition signed by at least 10% of voters in last general election with boundaries and 3 or 5 Commissioner positions. • Step 2 – After County Auditor certifies signatures, County Commission holds public hearing and approves/rejects. • Step 3 – If approved, ballot to be held on Special election with port district candidates running on same election. • Step 4 – If 50%+1 of voters approve, port district is formed and port commissioners elected. References: WAC 458-19-050, RCW Title 53, DOR Property Tax Levy Manual Details: Amounts assume same boundaries as Northwest Pool, Park, and Recreation District. Max. Millage Levy Name Rate Max. Amount Method RCW Expiration General Port 0.45 $ 3,180,000 Board 53.36.020 None Dredging 0.45 $ 3,180,000 Voters 53.36.070 1 year IDD 0.45 $ 3,180,000 Voters 53.36.100 20 years Workshop Meeting Minutes July 22, 2025 Page 10 of 15 Existing Port District – Coupeville Expansion - Potential Amounts: Up to $4.6 Million to $13.2 Million (Property Tax), can borrow up to $83.8 Million Approval Steps: • Step 1 – Port District Resolution or petition containing name of 10% of registered voters in expansion area for ballot to voters in expansion area on a General or Special election. • Step 2 – If 50%+1 of voters approve, port district is formed and port commissioners elected. Increase Commissioners to 5 – Similar procedure as Step 1. Candidates to be elected at next General or Special election. References: WAC 458-19-050, RCW Title 53, DOR Property Tax Levy Manual Details: Assume expansion boundaries to Northwest Pool, Park, and Recreation District. Charts use same method, RCW, Expiration as New Port District Current Millage Levy Name Rate Max. Amount Current Amt. Capacity General Port 0.1093 $ 5,030,000 $ 450,000 $ 4,580,000 Dredging 0 $ 5,030,000 $ - $ 5,030,000 IDD 0.3410 $ 5,030,000 $ 1,400,000 $ 3,630,000 Max. Amount Borrowing Type (2025) Method Notes Boardmanic (0.25% Assed. Value) $ 27,900,000 Board Excess Levy (0.75% Voter (60% + 1) Inc. Council- Assed. Value) $ 83,800,000 with validation manic amt. Metropolitan Park District (MPD) - Potential Amounts: Up to $5.3 Million (Property Tax), can borrow up to $176.5 Million: Approval Steps: • Step 1 – Resolution by governing bodies with jurisdiction over the proposed district or by petition signed by at least 15% of registered voters residing in proposed district to voters on ballot in the next General or Special election. Maximum levy defaults to 0.75 mills if not limited in the ballot. Candidates can appear on the same election. • Step 2 – If 50%+1 of voters approve, MPD is formed. • Step 3 – Within 6 months of election certification, size and membership is determined by interlocal agreement between City and County. References: RCW Chapter 35.61, MRSC MPD webpage Details: Amounts assume same boundaries as Northwest Pool, Park, and Recreation District. Max. Millage Levy Name Rate Max. Amount Method RCW Expiration Regular Levy 0.75 $ 5,300,000 Voters 35.61.210 None Deputy City Administrator and Finance Director Goldman also reviewed funding from potential grants. Staff have applied for two large grants as follows: Request: Up to $11.5 Million Agency: US Dept. of Transportation: Port Infrastructure Development Program Project: Dredging Workshop Meeting Minutes July 22, 2025 Page 11 of 15  City Match: 20% Application Due: September 10, 2025 Award Announced: December 31, 2025 Request: Up to $10 Million Agency: US Economic Development Administration Project: Breakwater Replacement City Match: 20% (potential for a waiver) Application Due: Rolling deadline – open now Award Announced: 6-9 months following application submittal In closing, Deputy City Administrator and Finance Director Goldman reviewed the Marina Fund per the chart below, and provided an overall summary of the Marina Project: Marina Fund (Fund 410, 420, and 440) Income Statement Equivalent 2020 2021 2022 2023 2024 Operating Revenues 1,621,350 1,766,062 1,995,239 2,021,245 2,044,344 Operating Expenses 1,459,074 1,424,664 1,883,144 2,448,404 1,986,225 Operating Income (Loss) 162,276 341,398 112,095 (427,159) 58,119 NonOperating Rev./Exp. 29,118 35,681 958,790 627,475 280,997 Transfers, Misc. - 24,700 150,000 - 1,887 Change in Net Position 191,394 401,779 1,220,885 200,316 341,003 Net position - beginning as restated 4,803,720 4,995,114 5,396,892 6,592,434 6,806,632 Net position - ending 4,995,114 5,396,892 6,617,777 6,792,750 7,147,635 Marina Fund (Fund 410, 420, and 440) Balance Sheet Equivalent 2020 2021 2022 2023 2024 Assets - Current Assets 2,270,786 2,504,522 2,682,806 2,638,342 2,332,554 - Noncurrent Assets 4,520,936 4,851,661 5,495,671 5,451,442 5,621,667 - Deferred Outflows 136,345 126,822 188,623 171,879 181,989 Total Assets 6,928,067 7,483,005 8,367,100 8,261,663 8,136,210 Liabilities - Current Liabilities 287,693 539,633 566,211 683,409 646,605 - Noncurrent Liabilities 1,608,587 1,250,617 1,075,679 717,004 296,991 - Deferred Inflows 36,673 295,863 107,433 68,501 44,980 Total Liabilities 1,932,953 2,086,113 1,749,323 1,468,913 988,575 Marina Net Position 2020 2021 2022 2023 2024 Capital Assets 2,771,128 3,164,243 3,903,595 4,216,302 4,801,030 Restricted Debt Service 257,000 257,000 257,000 257,000 257,000 Restricted Pension 41,599 98,925 151,553 179,957 Unrestricted 1,966,986 1,934,051 2,358,257 2,167,895 1,909,648 - 25% Operating Reserve 405,338 441,515 498,810 505,311 511,086 - Capital Projects 33,318 68,233 387,684 916,181 858,480 - System Development Fund 8,717 8,723 8,791 9,052 9,447 - Remaining Unrestricted 1,519,613 1,415,580 1,462,972 737,351 530,634 Total Net Position 4,995,114 5,396,893 6,617,777 6,792,750 7,147,635 Summary: Deputy City Administrator and Finance Director Goldman provided the following summary: Workshop Meeting Minutes July 22, 2025 Page 12 of 15 Marina Project Est. Annual Debt Svs. Dredging (Feb 20, Max) $880K-$1.05M Dredging (Feb 20, Min) $630K-$750K Maintenance Dredging See Slide Opt 1: Breakwater Replacement OR $760K Opt 2: Breakwater Repair and Renovation $390K Opt 1: Dock Reconf. and Redvelopment OR $2.235M Opt 2: Dock Repair and Renovation $735K Rock Structure N/A Marina Closing $595K Revenue Options Amount Max. Avg. Approval Monthly Cost Retired Debt Svs. $363K N/A Council Property Tax Levy Lid Lift Up to $3.24M $36.25 Voters Property Tax Excess Bond Levy Up to $75.8M $66.91 Voters Utility Tax Each 1% = $250K $2.00 Council B&O Tax $825K to $1.68M $42.00 to Council $637.17 Marina Dredging Fee (Existing) 32 foot $250K (2026 est.) $69.12 Council Marina Dredging Fee (Additional) 32 ft. Up to $630K $174.26+tax to Council Up to $380K $105.11+tax Marina Beakwater Fee (New) 32 ft. Up to $760K $210.22+tax Council Up to $390K $107.88+tax Port District - New Up to $9.5M $50.17* Voters Up to $53M $20.24* Port District - Expansion Up to $13.2M $33.43* Voters Up to $83.8M $20.25* MPD Up to $5.3M $27.87* Voters Up to $176.5M $67.47* Grants Up to $11.5M N/A Council Up to $10M Mayor Pro Tem Hizon and Councilmembers Marrow, Marshall, Wiegenstein, and Armes, provided their initial respective questions and comments, with Mayor Wright, Parks and Recreation Director Smith, Harbormaster Henry, Grants Administrator Horn, and Deputy City Administrator and Finance Director Goldman responding. BREAK Mayor Wright called for a five-minute break to resolve a technical difficulty with the view screens in Council Chambers from 2:17 p.m. to 2:22 p.m. at which time the meeting resumed. Consultant Bill Gerkin from Moffatt and Nichol provided input on the topics of maintenance dredging, breakwater repair and rehabilitation, and items needing repair or replacement within the Marina. He noted the City would need to determine its total construction budget for 2026-2028 if moving forward with repairs and maintenance dredging, which could have the potential for last through 2036. Workshop Meeting Minutes July 22, 2025 Page 13 of 15 Mayor Wright requested Deputy City Administrator and Finance Director Goldman review numbers for both full and maintenance dredging, and full breakwater replacement. The total for Phase 1 is estimated at $2,050,000, and for Phase 2 at $735,000 with a total amount needed equaling $1,435,000. Deputy City Administrator and Finance Director Goldman and consultant Gerkin responded to addi- tional questions and comments from Councilmembers Woessner, Wiegenstein, Stucky, Mayor Pro Tem Hizon and Councilmembers Armes, Marrow, and Marshall, as well as questions from Mayor Wright. A public hearing on the Council’s consideration of a Business and Occupation (B&O) Tax first ad- dressed in May by the Council was continued to August 6, 2025. Mayor Wright noted the objective of the thorough staff presentation today was to bring all the funding tools that could be utilized for- ward to address the failing asset that is the Marina, and to provide the Council with all options. Staff will seek Council direction at the August 6, 2025 Council meeting. DEVELOPMENT SERVICES a. 2025 Comprehensive Plan Major Update Principal Planner Rajesh “Cac” Kamak provided an update on the progress of the 2025 Comprehen- sive Plan. He explained that the growth allocation targets are currently in mediation with Island County and since mediation is still ongoing, he would be providing a general status update today. Mediation Process – Mediation proceedings currently underway with the County will likely have some cost implications. The mediation process and related time, along with additional analysis, were not included in the original scope of the Comprehensive Plan update for the consultants. Therefore, costs related to these will need to be considered and processed as the project moves forward. • The City and County entered mediation to establish growth targets. • The mediation process to date has gone through one and a half rounds of written questions and answers and one mediation meeting. The City is still awaiting responses to our second round of questions and for County feedback. • The County staff discussed options on July 16 and decided to change population projection to make numbers work. • The County thinks the mediation process is not needed, but City staff have requested continuation to resolve issues. • The County Planning Group met on July 21, 2025 regarding potential limited scope changes to the County Wide Planning Policy (CWPP). We need to determine how the proposed changes to the CWPP will affect growth and the Comprehensive Planning process. • City staff will meet with County staff to present an alternate joint option for Urban Growth Area (UGA) with population and planning numbers provided by the County. Environmental Impact Statement (EIS) Principal Planner Kamak also explained that an element of updating the Comprehensive Plan and discussing the accommodation of the allocated growth, involves an EIS. The population thresholds that were set by the original EIS done in the early 1990’s will be exceeded in a twenty-year Compre- hensive Plan. The original EIS was done for a period of 20 years to 2013 for a population of 28,580. The 2024 Office of Financial Management (OFM) current population estimate is for the City is 24,900, which is well below 28,580. However, with the growth that has been allocated for this update, the City will Workshop Meeting Minutes July 22, 2025 Page 14 of 15 be planning for a population of 38,426 by 2045. Since that anticipated population count exceeds the previous EIS threshold, and several significant development regulations changes are being consid- ered, staff recommends the City undertake an EIS for the Comprehensive Plan update. Staff are in the process of evaluating proposals for an EIS and determining the potential costs associated with this process. Project costs could rise from both additional delays and additional analysis. Applications for stormwater and other impacts such as transportation should also be examined. Cur- rently, the City has authority to study and plan for these elements within the City limits and not for the Urban Growth Area (UGA) or Joint Planning Area (JPA). In terms of project cost, the City’s Comprehensive Plan consultant contract with Kimley Horn was to have been completed last month in June of 2025. Additional work needed, including land capacity analysis options, falls outside the original scope of work. Principal Planner Kamak explained there was some reserve funding to go towards the overage in costs, but additional work and delays will also add costs. Mayor Wright thanked Principal Planner Kamak for his update. He noted he was out of the office on Friday when a Whidbey News-Times reporter called to request a two-hour interview prior to publica- tion of an article. Mayor Wright reported he subsequently called and met with Island County Com- missioner Jill Johnson and City Administrator Combs on Saturday and that both the City and County staffs are working through these items and addressing the UGA. Councilmember Woessner and Mayor Pro Tem Hizon provided their respective comments about growth, the planning process, and thanked Mayor Wright and City Administrator Combs for taking their Saturday off to meet with Commissioner Johnson. ADJOURN There being no further business, Mayor Wright adjourned the workshop at 4:05 p.m. Certified by Julie Nester, City Clerk Workshop Meeting Minutes July 22, 2025 Page 15 of 15