City Council

Oak Harbor City Council Regular Meeting Minutes September 2, 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. 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 – Led by Chaplain Timothy Miller, NAS Whidbey Island . 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 Public Works Director Steve Schuller Councilmember Bryan Stucky Police Chief Tony Slowik Councilmember Eric Marshall Deputy Police Chief Kevin Barton Councilmember Christopher Wiegenstein Fire Chief Travis Anderson Councilmember Barbara Armes Principal Planner Rajesh Cac Kamak Councilmember James P. Marrow Senior Planner Dennis Lefevre Finance Manager Chas Webster Harbormaster Alyce Henry Grants Administrator Wendy Horn 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 Councilmember Wiegenstein was attending remotely. 1. APPROVAL OF AGENDA Mayor Wright requested any changes to the regular agenda. Hearing none, it was approved as pre- sented. 2. PUBLIC COMMENT PERIOD Regular Meeting Minutes September 2, 2025 Page 1 of 9 Mayor Wright noted members of the public could comment on Consent Agenda items or subjects of interest not listed on the agenda at this time and there would be an opportunity to comment on the remaining agenda items during the meeting as appropriate. He explained the public may also visit the City’s website prior to meetings for methods to submit public comments, 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 Coun- cil but will not be displayed. Comments on public hearing items will be taken during the public hearings portion of the meeting. The City received no new public comments since the last regular meeting. 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 and asked speakers to step forward to the microphone, state their name and address, and to limit comments to three minutes. 1. Coreen Lerch of Oak Harbor addressed the Council as a concerned citizen and business owner regarding the negative impacts to safety, health, and economic enterprise in the vicinity of 1241 SW Barlow Street caused by ongoing issues with public urination, defecation, and drug use by those utilizing Spin Café. She noted these activities were detrimental to current business owners and to potential buyers of nearby properties. Ms. Lerch stated the location was not suitable for that non-profit organization, which provides assistance to the homeless, but does not qualify as a temporary or transitional shelter as they do not provide housing. 2. Tom Lerch of Oak Harbor addressed the Council to continue with Ms. Lerch’s remarks. He questioned why a non-profit was allowed to operate in what he termed the City center, when it was not in compliance. Mr. Lerch asked that the Council take measures to protect the health and safety of citizens in its biggest commercial district and suggested the Council reconsider allowing the facility to continue operating at that location. Hearing no one else with a desire to address the Council, the public comment period was closed. 3. CONSENT AGENDA Consent Items a. Approval of Minutes: City Council Meeting of August 19, 2025 and City Council Workshop of August 26, 2025 b. Approval of Payroll and Accounts Payable Vouchers c. Professional Services Agreement with Tim Shelley, Jr. for Videography Services, Amend- ment No. 5 d. Resolution 25-35: Amending Lodging Tax Funding for the Parks and Recreation Depart- ment’s Event - ChalkFest e. 2026 Lodging Tax/Tourism Promotion Application and Guideline Recommended Changes f. 2026 Lodging Tax Grant Funding Level Referral to Council Mayor Wright called for any changes to the consent agenda. Councilmember Marshall requested to pull consent agenda items e. 2026 Lodging Tax/Tourism Pro- motion Application and Guideline Recommended Changes and f. 2026 Lodging Tax Grant Funding Level Referral to Council for discussion. Mayor Wright called for a motion to approve the other consent agenda items as presented. Regular Meeting Minutes September 2, 2025 Page 2 of 9 Motion: Councilmember Marshall moved to approve the remaining consent agenda items. Coun- cilmember Marrow seconded the motion, which passed unanimously. Mayor Wright called for discussion regarding consent agenda items e. and f. e. 2026 Lodging Tax/Tourism Promotion Application and Guideline Recommended Changes Councilmembers Marshall, Stucky, Woessner, Mayor Pro Tem Hizon, and Councilmembers Marrow and Armes provided their respective questions and comments, which centered around the question of sustainability as a weight factor and its applicability to non-profit organizations, as well as the review process. Councilmember Stucky noted that the Lodging Tax Advisory Committee (LTAC) had recom- mended the changes presented in the item. Grants Administrator Horn responded to questions and comments from the Council. f. 2026 Lodging Tax Grant Funding Level Referral to Council Councilmember Marshall requested clarification on the funding level. Grants Administrator Horn con- firmed the recommended funding level was $475,000. Motion: Councilmember Marshall moved to approve consent agenda items e. and f. Mayor Pro Tem Hizon seconded the motion, which passed unanimously. 4. MAYOR & COUNCIL COMMENTS a. Mayor’s Comments Mayor Wright provided the following comments: • Way to Go Team!: The City’s Wastewater Treatment Plant was named an Outstanding Treatment Plant for 2024 by the Washington State Department of Ecology and recognized with an Outstanding Performance Award. The award is given for excellent compliance with water quality monitoring and re- porting requirements, and in meeting water quality permit limits. It recognizes the hard day-to-day work that our wastewater operators perform. This is the second time our Plant has won this award since its inception in 2018. The first award was for 2022. Congratulations to our Plant staff! • Wright Blend: Thank you to everyone who came downtown for our last Wright Blend prior to Buskers on the Corner. Thank you again to Captain Gammache, NASWI Commanding Officer for joining me in responding to questions from the community. Thanks to the Main Street Association for providing re- freshments, thank you to Councilmembers Marrow, Armes, and Marshall for attending, and thanks to our staff, including our Fire Chief Travis Anderson, Harbormaster Alyce Henry, and Assistant Harbor- master Charlie Currit. • Save the Date: Our next Wright Blend will be Friday, September 19 at Regency on Whidbey, located at 1040 S.W. Kimball Drive, starting at 10:00 a.m. We hope to see you for coffee and conversation. • NASWI Open House: I was joined in attending by Councilmembers Marshall and Armes, and Police Chief Slowik and Communications Officer Aguilar. NASWI did a great job of making all feel welcome. • All Staff Meeting: City offices were closed for an All Staff meeting and picnic lunch on Thursday, August 28, 2025. This annual event is part of the City’s Wellness Benefits Program, and included outdoor games, raffles, and employee awards. Communications Officer Aguilar and Human Resources Director House announced both the upcoming employee survey and a survey for input regarding the All-Staff wellness meeting event. Regular Meeting Minutes September 2, 2025 Page 3 of 9 • Regency on Whidbey Rock-A-Thon: This fun event was to raise awareness and funds for Alzheimer’s research. City Administrator Combs and I attended. Councilmembers Armes and Stucky attended earlier in the day as well. • Oak Harbor Music Festival: Congratulations to the Festival Board for another wonderful event! Thank you for all of your hard work in bringing this well-loved event to our community each year! Many of our staff volunteered and had a great experience. • Back to School: I and City staff would like to wish everyone a safe and wonderful school year. Let’s all remember to slow down in school zones and be mindful of students on their way to and from school in our neighborhoods. I was happy to hear from our Engineering Department that new crosswalks and beacons have been added at Olympic View Elementary. Thank you to our team for this improvement. Mayor Wright noted he would be joined by Councilmembers and members of the Executive staff in welcoming students back to school in person at district elementary schools on September 3. • Upcoming Community Events: There are a number of upcoming events in our community. Pictured were the Military Appreciation Picnic, free to all in our community, at Windjammer Park on Saturday, September 6, from 12-4 p.m., and our new Harvest at the Harbor event, Saturday, September 13 from 11:00 a.m. to 2:00 p.m. at the Oak Harbor Marina and Catalina Park. • Advisory Board Vacancies: We still have openings on several of our City Advisory boards and com- missions. See the City’s website for information on how to apply and requirements for applicants. • Stay Connected: Stay connected to City information and activities at any time by visiting our website and our Facebook page. b. Councilmembers Mayor Wright called on the Councilmembers for their comments. Councilmember Armes and Mayor Pro Tem Hizon provided their respective comments. Councilmember Armes praised the Oak Harbor Music Festival. She noted she would be among those greeting students heading back to school at Oak Harbor Elementary. Mayor Pro Tem Hizon inquired whether there were plans by the City for the installation of additional Electric Vehicle (EV) charging stations, noting there was a need for high-speed chargers. Police Chief Slowik noted he meets regularly with Grants Administrator Horn and Public Works Administration Man- ager Place on this and other topics. Puget Sound Energy recently resumed their grant program for EV charging stations and the City has applied and will apply for funding for this purpose. 5. PUBLIC HEARINGS & MEETINGS a. Ordinance No. 2027: Establishing Five-Year Rates for Water, Wastewater, Solid Waste, and Storm Drain Services. Deputy City Administrator and Finance Director Goldman reviewed the proposed ordinance and pro- vided background information. During the June 17, 2025 City Council Workshop, staff relayed to the Council that current utility rates are not sufficient to cover increases in utility fund costs as previously discussed in 2025 during meetings related to the 2025-26 Biennial Budget process and published in the 2025-26 Budget Document. Regular Meeting Minutes September 2, 2025 Page 4 of 9 The increases to these costs are primarily due to three major factors: water wholesale rates, solid waste transfer station costs, and the implementation of the comprehensive plan to fund facility and infrastruc- ture reserves for replacements. The rate increases from the City of Anacortes and Island County have already taken effect and are currently being absorbed by the use of utility net position which is not sustainable. As part of the June 17, 2025 City Council Workshop agenda, staff presented City Council with a detailed background of the issue, history of utility rates, and the results of a rate study conducted to ascertain the rates needed to sustain the City’s utilities operations, maintenance, capital, debt service, and re- placement needs. Proposed rate increases are needed to sustain the City’s utilities operations, maintenance, capital, debt service, and replacement needs and ensure Ending Fund Balance in the utility funds remains at levels set by City Council in Ordinance 1899. Factors Affecting Rates: • Solid Waste tipping fees – waste transfer fees paid to Island County, plus inflation increases • Wholesale water rates – fees paid to the City of Anacortes, with rates increasing by 25% • Comprehensive facility and infrastructure reserve for replacement • Inflation Need for Adjustments: • 2025 Increases absorbed through fund balances • Not sustainable • Rate adjustments needed • Budgeted fund balances (net position) projected to start going negative by end of 2026 Deputy City Administrator and Finance Director Goldman provided a ten-year history for rates, based on the following criteria as an example: • Single-family home • 700 Cubic Feet of water • 35-gallon roll carts for trash and recycling This was the same criteria used in the previous rate study. Deputy City Administrator and Finance Director Goldman reviewed proposed rates section by section. 2025 2026 2027 2028 2029 2030 Water $ 54.45 $ 58.01 $ 61.80 $ 65.49 $ 69.43 $ 71.50 Sewer $ 95.60 $ 98.47 $ 102.41 $ 106.51 $ 111.84 $ 115.20 Solid Waste $ 34.43 $ 37.32 $ 40.47 $ 42.49 $ 43.76 $ 45.07 Storm Drain $ 14.58 $ 15.60 $ 16.69 $ 18.03 $ 19.47 $ 21.03 Total $ 199.06 $ 209.40 $ 221.37 $ 232.52 $ 244.50 $ 252.80 He displayed a ten-year rate chart to show the proposed increases, and the 2022 and 2025 comparable rate studies by utility with other municipalities that have these services. Also shared were percentage increases by each city listed. The average increase is 28% among comparable cities. Regular Meeting Minutes September 2, 2025 Page 5 of 9 Mayor Wright opened the public hearing and confirmed no comments had been received. He requested comments from those members of the public in attendance. Hearing none, Mayor Wright closed the public hearing and called on the Council for their comments. Mayor Pro Tem Hizon and Councilmembers Woessner, Marshall, Armes, Stucky, and Marrow provided their respective questions and comments. Deputy City Administrator and Finance Director Goldman, City Administrator Combs, and Mayor Wright responded to questions. Motion: Mayor Pro Tem Hizon moved to adopt Ordinance No. 2027: Establishing five-year rates for water, wastewater, solid waste, and storm drain services. Councilmember Marrow seconded the mo- tion, which passed unanimously. b. Continuation of Public Hearing: Ordinance No. 2025: Clearing and Grade Code Amendment This was a continuation of the public hearing opened at the July 1, 2025 Council meeting. Senior Plan- ner Dennis LeFevre reviewed the proposed code amendment. He noted that a comment was received regarding proposed Section 20.15.040 – Exemptions. Reference was made to E2SHB 1110, a law passed in May 2023, with the intent to increase middle housing in areas traditionally dedicated to single- family detached housing. The request was to exempt from the clearing and grading requirements de- velopment of additional residential units on lots which are zoned predominantly for residential use. This section of E2SHB 1110 was codified in RCW 36.70A.635. The applicable portion of that RCW states: 36.70A.635(1) Except as provided in subsection (4) of this section, any city that is required or chooses to plan under RCW 36.70A.040 must provide by ordinance and incorporate into its development regu- lations, zoning regulations, and other official controls, authorization for the following: • 36.70A.635(1)(a) For cities with a population of at least 25,000 but less than 75,000 based on office of financial management population estimates: o 36.70A.635(1)(a)(i) The development of at least two units per lot on all lots zoned predomi- nantly for residential use, unless zoning permitting higher densities or intensities applies; o 36.70A.635(1)(a)(ii) The development of at least four units per lot on all lots zoned predom- inantly for residential use, unless zoning permitting higher densities or intensities applies, within one-quarter mile walking distance of a major transit stop; and o 36.70A.635(1)(a)(iii) The development of at least four units per lot on all lots zoned predom- inantly for residential use, unless zoning permitting higher densities or intensities applies, if at least one unit is affordable housing. The Office of Financial Management 2025 population estimate for the City of Oak Harbor is 24,820 persons, thus, this portion of the RCW is not required at this time and revision to the clearing and grading exemptions is not necessary. Council Options: 1) Proceed with Ordinance No. 2025 amendment anticipating city will reach a population of 25,000 or 2) Adopt Ordinance No. 2025 without the required density exemption provision. Other zoning and density mandates from E2SHB 1110 (Middle Housing Bill) are being packaged and will be further discussed in 2026. Senior Planner Lefevre explained the staff recommendation that the Council adopt Ordinance No. 2025 without the density exemption for the following reasons: Regular Meeting Minutes September 2, 2025 Page 6 of 9  • This exemption would be part of that package and provide consistency with other parts of the code as amended, including zoning and density amendments. • No internal monitoring systems exist or are in place to conduct the required annual audit. • No process currently exists to track the development and continuance of affordable housing. Development Services staff anticipate this package of amendments will begin the review process by Spring of 2026. Mayor Wright opened the public hearing and confirmed no comments had been received. He requested comments from those members of the public in attendance. Hearing none, he closed the public hearing and called on the Council for their comments. Councilmembers Woessner and Marrow provided their respective questions and comments, which were responded to by Senior Planner Lefevre. Motion: Councilmember Woessner moved to adopt Ordinance No. 2025: Repealing Oak Harbor Mu- nicipal Code Chapter 19.47 – Land Clearing and adding Chapter 20.15 – Land Clearing and Grading. Councilmember Marrow seconded the motion, which passed unanimously. c. Continuation of Public Hearing: Ordinance No. 2026: Code Amendment regarding Permit Review Timelines Principal Planner Kamak provided a review of the proposed ordinance and provided background infor- mation. Senate Bill 5290 amended the Local Project Review Act, Revised Code of Washington (RCW) Chapter 36.70B, to provide for new requirements intended to increase the timeliness and predictability of local project review, rendering the applicable section of the Oak Harbor Municipal Code (OHMC), Chapter 18.20, out of compliance effective January 1, 2025. Following the July 1, 2025 public hearing presentation to the City Council, staff reviewed the public comment received with the City Attorney and drafted an additional ‘whereas’ statement to address the comments and concerns raised at that hearing. This statement points out the minor nature of the items called out in the RCW section noted at the hearing and points out that more involved projects will have additional review processes which are addressed elsewhere in the OHMC and revised RCW timelines. The amendments to RCW Chapter 36.70B pertain to permitting procedures covered in OHMC Chapter 18.20. Language from the RCW mirrored in the OHMC was adjusted in sections related to definitions and exemptions, but the most salient change involves updated project permit review timelines. Addi- tionally, vestigial references to defunct Planned Industrial Park (PIP) and Planned Business Park (PBP) zone district processes were found in this section, as well as a procedural section concerning ‘counter complete status’ which has been rendered obsolete by a permit submittal process which is now fully digital. After a review of the relevant code section, the City determined that the code section should be amended for clarity via the removal of the vestigial references, and for compliance and consistency with the updated provisions of the Local Project Review Act, RCW Chapter 36.70B. There are seven (7) sections of code that are being updated relating to permit procedures. 1. OHMC 18.20.130 2. OHMC 18.20.140 3. OHMC 18.20.260 4. OHMC 18.20.330 5. OHMC 18.20.350 6. OHMC 18.20.390 7. OHMC 18.20.410 Regular Meeting Minutes September 2, 2025 Page 7 of 9 Mayor Wright opened the public hearing and confirmed no comments had been received. He requested comments from those members of the public in attendance. Hearing none, he closed the public hearing and called on the Council for their comments. There were no questions or comments from the Council. Motion: Councilmember Marshall moved to adopt Ordinance No. 2026: Amending Chapter 18.20 of the Oak Harbor Municipal Code, pertaining to procedural requirements for permitting. Councilmember Woessner seconded the motion, which passed unanimously. 6. ORDINANCES & RESOLUTIONS a. Resolution 25-34: Marina Master Fee Schedule Deputy City Administrator and Finance Director Goldman reviewed the proposed Marina Master Fee Schedule. On August 6, 2025, the City Council adopted a Local Business & Occupation (B&O) Tax. At that meet- ing, seven scenarios were presented to Council to consider for funding the Oak Harbor Marina dredging and breakwater projects. The Council directed staff to follow Option 5, which included the adoption of a B&O Tax along with the pursuit of additional revenue sources, including increasing the Marina Dredge Fee. This item effectuates Council's direction to raise additional revenues from the Marina Dredge Fee. Following Scenario 5 and using a 32-foot Uncovered Monthly Rate as an example, the Dredge Fee would increase from the previous October 2025 rate of $69.12 to $94.00. That amount ($94.00) divided by 32 feet equates to $2.94 per lineal foot for the Breakwater Fee effective October of 2025. The overall rate, using the 32-foot Uncovered Monthly Rate example, would increase by about 7% from the rates that were scheduled to take effect October 2025. He provided a table displaying these rates. Deputy City Administrator and Finance Director Goldman explained the dredge fee is estimated to raise $90,000 - $100,000 annually. These funds will be used in conjunction with B&O Tax collections to pay for debt service on the dredging and breakwater projects. Deputy City Administrator and Finance Di- rector Goldman provided a comparison chart for Master Fee Schedule D – Marina, between April 2021 and October 2025. Mayor Wright noted no public comments had been received. He opened the floor for comments from those present. Hearing none, he called upon the Council for their questions and comments. Councilmember Stucky inquired whether the Marina Advisory Commission (MAC) had provided any comments on this topic. Deputy City Administrator and Finance Director Goldman noted members of the MAC were present at the August 6, 2025 meeting when the B&O Tax was adopted and the Council direction to staff was for Option 5. The MAC met for their regular meeting since then and the topic was not brought up as an issue. Harbormaster Henry confirmed the MAC had no comments at their meeting on increasing the dredge fee by an additional 7%. Motion: Councilmember Armes moved to adopt Resolution 25-34: Amending Oak Harbor Master Fee Schedule, Schedule D - Marina. Councilmember Marrow seconded the motion, which passed unani- mously. 7. OTHER ITEMS FOR CONSIDERATION a. Approval of Accounts Payable Vouchers – Chamber of Commerce Regular Meeting Minutes September 2, 2025 Page 8 of 9 Mayor Wright noted this voucher list contains payment to the Greater Oak Harbor Chamber of Com- merce (Chamber), of which Councilmember Marshall is the Executive Director. He explained that to avoid a conflict of interest, Councilmember Marshall has stated he will recuse himself from a vote on such payments. This voucher list was presented separately. Mayor Wright confirmed no public comments had been received. Hearing no comments from the public in attendance, he called on the Council for their comments. Hearing none, he called for a motion. Motion: Councilmember Woessner moved to approve the Accounts Payable Voucher List - Voucher 200810 for the Greater Oak Harbor Chamber of Commerce as presented. Mayor Pro Tem Hizon se- conded the motion. Councilmember Marrow noted he was a non-paid and non-voting member of the Chamber, and inquired whether he needed to recuse himself, which he did not. Mayor Wright called for a vote on the motion, which passed by a vote of six in favor and Councilmember Marshall abstaining. ADJOURN There being no further business, Councilmember Marrow moved to adjourn the meeting, seconded by Councilmember Woessner. The vote on the motion was unanimous, therefore the meeting was ad- journed at 7:14 p.m. Certified by Julie Nester, City Clerk Regular Meeting Minutes September 2, 2025 Page 9 of 9