City Council

Oak Harbor City Council Workshop Meeting Minutes November 25, 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 Pro Tem Hizon called the workshop meeting to order at 1:00 p.m. ROLL CALL City Council Present: Staff Present/Videoconference Mayor Ronnie Wright - absent City Administrator Sabrina Combs Mayor Pro Tem Tara Hizon Deputy City Administrator David Goldman Councilmember Jim Woessner Police Chief Tony Slowik Councilmember Bryan Stucky Fire Chief Captain Otto Haffner Councilmember Eric Marshall City Engineer Alex Warner Councilmember Christopher Wiegenstein Finance Manager Chas Webster Councilmember Barbara Armes Finance Manager Ashley Ramos Councilmember James P. Marrow 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 Others in attendance: Joshua Shippy, WSDOT Northwest Region MAYOR Mayor Pro Tem Hizon noted she was presiding at the request of Mayor Wright and welcomed all in attendance. All members of the Council were present. Mayor Pro Tem Hizon 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. CITY COUNCIL Mayor Pro Tem Hizon invited Councilmembers to provide any updates on the City’s boards, com- missions or committees on which they serve as a Council liaison. Councilmembers Marrow, Woessner and Mayor Pro Tem Hizon provided updates. Councilmember Marrow reported that the Island Transit contract negotiation process went very well and a new three (3)-year contract was reached with employees. Workshop Meeting Minutes November 25, 2025 Page 1 of 9 Mayor Pro Tem Hizon reported that the Northwest Clean Air Agency (NWCAA) had updated their air quality monitoring system here in Oak Harbor. NWCAA recently moved their monitoring system to the City’s Public Works property, with a new station that includes the latest technology. The new system provides improved monitoring for particulate matter and wildfire smoke conditions. NWCAA has begun a five (5)-year strategic planning process. More information can be found on their website: nwcleanair.gov. Councilmember Woessner reported that the Planning Commission did not meet last month as they were waiting on updates but did have a new Commissioner join the Commission the month before and have another candidate pending approval in December. Both new members have significant experience and interest in planning. CITY ADMINISTRATOR a. Monthly Departmental Reports City Administrator Combs provided her report, which was included in the meeting packet. Highlights included: • Northwest Women’s Leadership Academy (NWWLA) – City Administrator Combs attended an NWWLA sponsored event to package hygiene kits for middle school and high school students and included writing notes of encouragement to recipients. • Oak Harbor Public Schools – City Administrator Combs attended the School District Super- intendent’s Community Advisory Roundtable. Participants learned a great deal about the School District’s budget, how District programs are funded, and how the community can help. • Emergency Management – Island County is working to update the Multi-Jurisdictional Hazard Mitigation Plan for 2026 and its Community Wildfire Protection Plan. The public is invited to complete their survey and provide input. • Regional Public Safety Training Facility – The real estate transaction for the City’s purchase of the property closed on November 17, 2025. A facility overview is underway, including cur- rent technology infrastructure and utilities. A public Open House is being planned for early 2026. • Grant Updates – o Two Cybersecurity projects were selected for funding in 2026, totaling $105,000 o Transportation Improvement Board (TIB) award for SE Barrington Drive for $669,252 in 2027 Mayor Pro Tem Hizon thanked City Administrator Combs for her report. She called for any questions or comments from the Council. Councilmembers Stucky, Woessner, and Marrow provided their respective questions and comments which centered on the Code Compliance portion of the report. City Administrator Combs responded to questions and noted the City’s current Code Compliance Officer was retiring. That part-time position will change to a full-time position moving forward and will be more proactive. She will work with the incoming Community Development Director, the City’s counterparts in other municipalities, and the City’s legal counsel to proactively approach and improve compliance and address code compliance. b. 2026 Legislative Priorities Workshop Meeting Minutes November 25, 2025 Page 2 of 9 Grants Administrator Horn and Communications Officer Aguilar presented the draft City of Oak Har- bor 2026 Legislative Priorities. Included was a recap by Grants Administrator Horn of the City of Oak Harbor's 2025 Legislative Priorities and related accomplishments, a review of the Association of Washington Cities (AWC) 2026 Legislative Priorities and the Island County 2026 Legislative Priorities by Communications Of- ficer Aguilar, as well as the presentation of draft City of Oak Harbor 2026 Legislative Priorities. City of Oak Harbor 2025 Legislative Priorities and related accomplishments: • Emergency Services – Create additional funding tools and resources to improve public safety. Increase behavioral health response teams. Expand access to training and law en- forcement academy classes, which increases the number of new officers available to serve our communities. Add a regional training facility in Island County. o Law Enforcement Academy in Arlington  Expanded access which equals an increase the number of new officers o New Funding from State  $100 Million in Law Enforcement grants o Regional Public Safety Training Facility purchased • Flexible Real Estate Excise Tax (REET) – Reestablish the flexibility for using REET Funds as provided during COVID (2021 and 2023) to help fund facility improvements, (i.e. Police station) and Housing and Childcare Availability – Partner with Island County, State, and Fed- eral agencies to expand workforce housing and childcare options. Pursue funding sources to support local developments and code changes to address growth. Increase childcare. o Modified codes  Three (3) Daycares opened last year o Opportunity Council Partnership - Mulberry Village Affordable Housing Project  Connecting Housing to Infrastructure Program grant  Rural County Economic Development (RCED) grant • Indigent Defense Costs – Advocate for ways to reduce impacts to non-metro communities that have more difficulty finding and funding indigent defense and expense with conflict de- fense services. o Submitted letter to the Supreme Court of Washington  Impacts defense expenses have on municipalities o Applied for a new Office of Public Defense grant  $45,930 awarded • Invest in Our Community – Secure additional funding to support facility and transportation needs to improve the City’s infrastructure for the future, Fund the expansion of utility services. Address Oak Harbor Marina, State Route 20, and Washington State Ferry System for our community. o Completed three (3) utilities and streets projects with partial grant funding  NE 7th Ave, Swantown and Lopez Drive o Council approved Marina improvements funding streams  Applied for $11.5 Million Marina grant o Continue to lobby for more ferries • Public Records Management – Address municipal costs for public record requests by funding tools to respond to requests and ease burden on City staff. o Submitted letters to the State Attorney General’s Office  Impacts Public Records requests from journalists have on municipalities o Restructured Public Records to create efficiencies • Ratepayer Impacts – Address ratepayers; impacts by addressing long-term debt terms and managing increased service costs for water, sewer, and solid waste rates. o Restructured Clean Water Facility Debt Service. Workshop Meeting Minutes November 25, 2025 Page 3 of 9   Saving rate payers $1 Million o Worked with the City of Anacortes for a new water fee structure. o Currently conducting an Impact Fee Study. • Naval Air Station Whidbey Island (NASWI) – Continue to support NASWI through partner- ships with the City of Oak Harbor. o Child Care Centers o Affordable Housing o Joint Appearances o Joint Meetings Grants Administrator Horn provided the following graphic representation on the progress made in completing the City Council’s 2025-2026 Priorities: The following were identified by the Association of Washington Cities (AWC) as their 2026 City Leg- islative Priorities: • Indigent Defense - Increase state support and funding for indigent defense services to meet existing needs as well as the new lower caseload mandates ordered by the Washington Supreme Court. Enhance state support for increasing the indigent defense workforce with incentives and programs to encourage more public defenders. • Housing Supply - Provide time to implement recent state housing legislation. Increase hous- ing investments to meet needs across the housing continuum, including construction and preservation of affordable housing, home ownership, and senior housing. Support tools to better coordinate urban growth area (UGA) development and funding options such as a local option real estate excise tax, short-term rental tax, and expanded use of lodging taxes for housing. • Transportation - Increase sustainable revenue that supports local transportation preserva- tion, maintenance, and operations and includes direct distributions to cities and towns. Workshop Meeting Minutes November 25, 2025 Page 4 of 9  Continue to support efforts to improve traffic safety. Explore revenue tools such as a highway usage fee, a retail delivery fee, expanded transportation benefit district (TBD) authority, or a “sidewalk utility.” • Shared Revenues - Continue the historical revenue-sharing partnership between the state and its cities and towns, which provides stability and continuity for local budgets. Preservation of these resources, such as liquor revenues and criminal justice assistance funds, are indis- pensable to local fiscal sustainability and predictability. The following have been identified by the Island County Board of Commissioners as 2026 Priorities: • Innovation Pilot for Rural Wastewater • Jail Design Funding • County Services Building Electrical Panel • Veteran Services Officer Funding • Statutory Criteria for Backup Public Health Officer • Liability Reform • Cama Beach Cabins • Operating Funding for Behavioral Health Facilities Communications Officer Aguilar presented the draft 2026 City of Oak Harbor Legislative Priorities for Council review and discussion: • Public Safety and Health Care - Create additional funding tools and resources to improve public safety. Advocate for alternative funding or subsidies to support access to and afford- ability of health care and other basic needs. • Housing and Childcare Availability - Partner with Island County, State, and Federal agencies to expand workforce housing and childcare options. Pursue funding sources to support local developments and advocate for necessary code changes to address anticipated growth. • Indigent Defense Costs - Advocate for funding and incentives to increase the number of indigent defense attorneys in rural and non-metro communities and address rising cost im- pacts to municipalities. • Infrastructure Investment - Secure additional funding to support facility, transportation and utilities upgrades to improve the City’s infrastructure for the future. Advocate for foot ferries for our community. • Invest in Our Community - Advocate for changes to state regulations regarding economic development activities by encouraging public-private partnerships. Secure additional funding to support City-wide economic development projects. • Public Records Management - Advocate for legislative reforms to public records statutes that provide municipalities with flexibility and resources to manage public record requests to ease the burden on staff and rising costs of fulfilling requests. Costs could strain budgets and threaten a city financially. • Naval Air Station Whidbey Island (NASWI) - Continue to support NASWI through joint part- nerships. Communications Officer Aguilar provided additional information for each of the draft priorities. She noted she attends the Whidbey Island Health Advisory Board meetings at which medical providers attend and discuss their challenges. Also addressed in the draft priorities is the shortage in workforce housing and childcare, and the need for more care facilities. Communications Officer Aguilar ex- plained she has served on the military childcare task force that seeks to provide aid to start and open facilities to meet a growing need. In regard to infrastructure investment and investing in our commu- nity, she explained the need to support local business and work with the State of Washington to strengthen partnerships. As the supervisor for the City’s Public Records Officer, she noted the num- ber of requests for public records continues to rise, as is seen by municipalities throughout the state. Workshop Meeting Minutes November 25, 2025 Page 5 of 9 Communications Officer Aguilar explained that the City remains committed to supporting NASWI. She noted these draft priorities reflect the needs of Oak Harbor and impacts for 2026. Mayor Pro Tem Hizon thanked Grants Administrator Horn and Communications Officer Aguilar for their presentation. She called on the Council for their questions and comments. Councilmembers Wiegenstein, Marrow, Woessner, Marshall, and Mayor Pro Tem Hizon provided their respective questions and comments. City Administrator Combs, Communications Officer Aguilar, and Police Chief Slowik responded to Council questions and comments. Council comments included discussion of an Island County Jail, continued support of NASWI, a review of the more detailed priorities breakdown sheet that is pro- vided to legislators with specific infrastructure needs and costs, advocating for foot ferries and the potential economic impacts, and continued support of mental health services. City Administrator Combs noted Mayor Wright, and this administration is focused not just on what is needed and can be done now, but also what will be needed in preparation for twenty (20 years from now. Communications Officer Aguilar will incorporate the Council’s suggested revisions and bring the 2026 City of Oak Harbor Priorities back for approval in December. ENGINEERING a. Speed Limits on State Route 20 City Engineer Warner introduced Joshua Shippy from the Washington State Department of Trans- portation’s Northwest region office, who was attending remotely. City Engineer Warner presented an update to the Council regarding earlier discussions stemming from the insertion of a roundabout at the intersection of State Route 20 (SR20) and Fakkema Road and speed limits proposed for that portion of the roadway. This initiated a discussion regarding ad- justing speed limits on SR20. Simultaneously but separately, an analysis of the speed limits on SR20 from Barlow Street to the south City limits was requested by City staff. Per RCW 46.61.430, the speed limits on state highways, including within city limits, are set by the Washington State Secretary of Transportation. WSDOT is examining lowering the speed limit approaching the Fakkema Road roundabout and has proposed a reduction north of the City limits at Mile Post 33.39 from 50 mph to 45 mph. WSDOT is also examining a reduction in the speed limit from Barlow Street to Swantown Avenue from 40 mph to 30 mph, and a reduction from Swantown Avenue to the south City limits from 50/40 mph to 35 mph. City Engineer Warner explained that once WSDOT competes its analysis, staff will package all changes into one ordinance update for presentation to the Council. Mayor Pro Tem Hizon thanked Engineer Warner for his update and turned to the Council for their questions and comments. Mayor Pro Tem Hizon and Councilmembers Marrow, Stucky, and Woessner provided their respec- tive questions and comments. City Engineer Warner and Police Chief Slowik responded to Council questions and comments. Workshop Meeting Minutes November 25, 2025 Page 6 of 9 FINANCE a. Finance Department Annual Report Deputy City Administrator and Finance Director Goldman introduced Grants Administrator Wendy Horn, and Accounting Managers Chas Webster and Ashley Ramos. He presented the annual report of 2025 accomplishments, all of which were related to Council legislative priorities, and an outlook for 2026. Deputy City Administrator and Finance Director Goldman reviewed the following: 2025 City Council Legislative Priorities included: • Regional Public Safety Training Facility - $250,000 grant • Real Estate Excise Tax – Flexibility and Public Safety - House Bill (HB)1791 passed o Deputy City Administrator and Finance Director Goldman and staff had a hand in writing this Bill and pushing it forward. • Indigent Defense Costs – OPD Grant and Potential 0.1% Criminal Justice Sales Tax (HB 2015) o Staff worked with the Association of Washington Cities (AWC) to develop this grant program. • Transportation Funding – Motor Vehicle Fuel Tax (MVFT) – Senate Bill (SB) 5801 o Staff worked in support of this Bill, • Utility Services – Utility Rate Study o Staff performed this study internally and saved more than $100,000 compared to hir- ing a consultant. • Address the Marina – Business & Occupation (B&O) Tax implementation, Island County Grant, and other funding for Phase One of Marina rejuvenation. ERP Implementation: Finance Manager Ramos provided an overview of the City’s Enterprise Resource Planning (ERP) software system being implemented by the City to centralize data and automating workflows based on departments and procurement policies to provide real-time visibility across different departments, streamline operations, and reduce duplication of work. The City is currently in Phase One of implan- tation with a projected “go live” date for the introductory modules of January 5, 2026. Finance Man- ager Ramos explained this has required a large effort from all departments at the City. Phase Two, which includes a Human Resources component, began in July of 2025 and is anticipated to be implemented by mid-2026. Grants: Grants Administrator Horn reviewed the grants the City has received, has applied for and is currently managing. 2024 Grants: • 33 Applications Submitted • 18 Awarded • $3,650,790 Total Awarded 2025 Grants to date: • 28 Applications Submitted • 22 Awarded to Date • Over $6 Million Awarded • $21,735,000 Waiting to Hear Grants the City is Currently Managing: Workshop Meeting Minutes November 25, 2025 Page 7 of 9  • 37 Active Grants Across All Departments • Worth $12.2 Million • $2.8 Million recovered since 2023 Accounting: Finance Manager Ramos noted it had been a very busy year for the Finance and Accounting staff with both new Government Accounting Standards Board (GASB) rule implementations and State of Washington Auditors Office (SAO) financial and accountability audits for 2024. • GASB 100 Implementation – Accounting Changes for Error Corrections • GASB 101 Implementation – Compensated Absences • Monthly AP Metrics • Clean 2024 Audit Result • One only four (4) cities to be nominated for the Stewardship Award • 2026 GASB 102 Implementation and GASB 103 and GASB 104 planning Finance Manager Ramos offered a few additional metrics: • The City processes 360 invoices per month • Invoices are paid on average within fifteen (15) days of receipt • Refunds are provided to customers within ten (10) days of confirmation Tax and Licensing: Finance Manager Chas Webster reviewed both business and animal licensing for 2024. Business Licenses: • Approximately 2,000 licenses o 2025 baseline = $89,900 o 2025 Estimated for Economic Development Addition to Reserve = $195,884 o End of 2024 Balance = $48,800 Animal Licensing: • Total Issued: 387 o New Licenses: 366 o Renewals: 21 • Total Pet-Owning Households: 6,506 • License Compliance Rate: 5.95%, which was up from 3.92% last year Local Business & Occupation (B&O) Tax Implementation: Deputy City Administrator and Finance Director Goldman reviewed the City’s Local B&O Tax Imple- mentation Business Community Outreach – performed via: • Development of Tax Forms and Worksheets • Evaluation of Electronic Tax Collections (if needed) • Creation of Internal Processes and Staff Training • Update City’s website • Update Frequently asked Questions (FAQ) • Update Ordinance per State Model Ordinance Changes - Senate Bill (SB) 5814 Workshop Meeting Minutes November 25, 2025 Page 8 of 9 Deputy City Administrator and Finance Director Goldman explained that he would contact and review the Local B&O Tax information for all affected businesses and walk them through the processes and due dates. The City will begin receiving this revenue in April of 2026. Let’s Talk Finance series: Deputy City Administrator and Finance Director Goldman developed a series of short videos on finance that are specific to the City of Oak Harbor, with the goal of creating a greater understanding of the City’s budget. These will be available on the City’s website. Investments: Deputy City Administrator and Finance Director Goldman reviewed the City’s invest- ments, which are also provided in a quarterly report to the City’s Investment Committee. The reports include Bond earnings and Local Government Investment Pool (LGIP) earnings. In closing, Deputy City Administrator and Finance Director Goldman provided the Finance Depart- ment’s work plan for 2026. 2026 Work Plan: • Utility services expansion– Impact Fee Study • 2027-28 Biennial Budget – Program/Performance Budget Benefits • Transportation Funding – Potential 0.1% Transportation Benefit District (TBD) Sales Tax • ERP Implementation – Phase 1 & 2 Implementation; Phase 3 programming • Elected Official Municipal Financial Education • More Grants The report was met with applause from those in attendance. Mayor Pro Tem Hizon thanked Deputy City Administrator, Grants Administrator Horn, and Finance Director Goldman and Finance Managers Ramos and Webster for the report. She called on the Council for their questions and comments. Councilmembers Stucky, Woessner, Marrow, and Mayor Pro Tem Hizon provided their respective questions and comments. The Council praised the increases in investment earnings, the great work on the 2024 audit, and the assertive and aggressive work performed by the Finance Department. ADJOURN There being no further business, Mayor Pro Tem Hizon adjourned the workshop at 2:49 p.m. Certified by Julie Nester, City Clerk Workshop Meeting Minutes November 25, 2025 Page 9 of 9