Public Hearing: Moratorium on Development Applications for Properties Within 200+ Feet of Geotube Project

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 08, 2001 Public Hearing: Moratorium on Development Applications for Properties Within 200+ Feet of Geotube Project New Council Business: Ordinance No. 707: Temporarily Prohibiting Acceptance of Development Applications. Public testimony on the moratorium temporarily prohibiting the acceptance of development applications for properties generally described as within 200+ feet of the geotube project. Tape 1, #663 - Councilmember Veitz moved to recess the regular session and convene into the Public Hearing to take testimony on the moratorium. Councilmember Samuels seconded the motion. Mayor Jordan called the Public Hearing to order at 6:21 PM. Mr. Gow explained that every six months the City is required to go through this Public Hearing process and approve the appropriate documents. He noted a correction on the map describing the moratorium area. Mayor Jordan called for Public Testimony. No one spoke for or against the moratorium. Tape 1, #805 - Councilmember Veitz moved to adjourn the Hearing and reconvene into the Regular Council meeting. Councilmember Samuels seconded the motion. Mayor Jordan closed the Public Hearing and reconvened into the Regular City Council Meeting at 6:25 PM. An Ordinance of the City Council relating to planning and the performance of analysis and studies relating to certain real property within the City of Ocean Shores and temporarily prohibiting the acceptance of development applications, including, by way of example only, those relating to the division of land or building permits for said properties, generally described as within 200+ feet of the geotube project. Mayor Jordan read the Ordinance by title. Mr. Gow explained the reason for the moratorium and the effects to the properties within that area. Development permits will be accepted for repairs or maintenance on existing structures in the 200 foot setback area. Development permit applications will be accepted on properties east of the 200 foot setback area. There was public comment. Tape 1, #992 - Councilmember Creighton moved to approve the Ordinance as written. Councilmember Snyder seconded the motion. Resolution No. 438: Assign Bank Account as Cash Performance Bond A Resolution of the City of Ocean Shores authorizing the Mayor to execute documents to assign a bank account as a cash performance bond in the amount of $250,000. Mr. Gow presented the Resolution for Council approval. He explained that this is the same resolution that has been passed in the past. DJH 01.08.2001 Page 2 of 4

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 08, 2001 New Council Business Continued: Resolution No. 438 Geotube Cash Performance Bond Mr. Gow suggested that Council look into who holds the titles on the property where the geotubes are located. t may not be State owned property. Mr. Menter commented that the $250,000 has not been reduced from the City's cash funds. He recommended that the Council review and appropriate the funds to cover the $250,000 in the next few months. There was Council consensus to change Mayor to City Manager to authorize the execution of documents. There was public comment. Tape 1, #1483 - Councilmember Veitz moved to approve the Resolution with the change to City Manager to execute documents. Councilmember Snyder seconded the motion. Ordinance No. 708: Flood Damage Prevention An Ordinance of the City Council changing certain sections of the Ocean Shores Municipal Code Chapter 15.36 (Flood Damage Prevention) to bring it nto conformance with the Washington State Model Flood Damage Prevention Ordinance. Mayor Jordan gave the second reading of the Ordinance by Title. Ms. Smith explained that the Ordinance brings the City into conformance with State requirements. There was no public comment. Tape 1, #1566 - Councilmember Creighton moved to adopt the Ordinance as written. Councilmember Samuels seconded the motion. Ordinance: Dunes Protection Act. An Ordinance of the City Council of the City of Ocean Shores amending Ocean Shores Municipal Code Chapter 18.56, the Ocean Dunes Protection Act. Ms. Thomas gave the first reading of the Ordinance by Title, She explained that the change gives the authority to grant variances to the City Council rather than the Public Works Director. Discussion: Medical coverage for City Council Members There was Council discussion. There was no public comment. City Council discussion regarding medical coverage for City Councilmembers, which would be affective upon reelection or newly elected. Mayor Jordan opened the discussion by introducing the possibility of the City providing health care benefits for reelected or newly elected Councilmembers. The cost is about $178.00 a month per Councilmember. There was considerable Council discussion. There was public comment for and against providing future Councilmembers with health care benefits. Mayor Jordan requested that the City Manager research the possibility of providing future Councilmembers with health care benefits and answer the questions brought forward tonight. DJH 01.08.2001 Page 3 of 4

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 08, 2001 Proclamation: Child Abuse Awareness Day A Proclamation for the City of Ocean Shores, Washington designating January 16, 2001 as Child Abuse Awareness Day in the City of Ocean Shores. Mayor Jordan read the Proclamation. City Manager's Report: Dennis Hunter requested Council to consider scheduling two study sessions. One with the Golf Course to discuss the driving range project, and the other with Black & Veatch to discuss the Utility Rate Study. The meetings were scheduled for Tuesday, January 16, 2001 at 6:00 PM at the Convention Center. The Utility Rate Study will be discussed first. Dennis Hunter commended Mr. Wilson on the fantastic transition he provided. Announcements: Mayor Jordan presented Miles Beach with an Outstanding Performance Award plaque from the Washington State Department of Ecology for recognition of exemplary effort and work at the Wastewater Treatment Facility in 1999. Mayor Jordan announced an opening on the Planning Commission. Applications will be accepted through the month of January, 2001. Applications are to be sent to the City Manager. Mayor Jordan announced an opening on the Library Board. Applications are to be sent to the City Manager. Mayor Jordan presented Mike Wilson with a proclamation for his final retirement from the City of Ocean Shores. Appointments: Executive Session: Adjourn: None. None. Tape 1, #3390 - Councilmember Creighton moved to adjourn the Regular City Council Meeting. Councilmember Samuels seconded the motion. Mayor Jordan adjourned the Regular City Council meeting at 7:27 PM. Signed: Peter B. Jordan, M Attest: Diane"! Houston, City Clerk DJH 01.08.2001 Page 4 of 4

CTY COUNCL STUDY SESSON MNUTES JANUARY 16,2001 Call to Order: Mayor Jordan called the City Council Study Session to order at 6:01 PM, at the Ocean Shores Convention Center. Discussions: Utility Rate Study Councilmembers present: Mayor Jordan, Councilmembers, Creighton, Samuels, and Snyder. Councilmember Veitz was excused. City Staff present: City Manager Dennis Hunter, nterim Finance Director Paul Menter, Public Works Director/City Engineer John Gow, Librarian Judy Stull, Wastewater Treatment Plant Superintendent Miles Beach, Utility Billing Supervisor Jim Sanders, and City Clerk Diane Houston. Council discussion of the Utility Rate Study with Black & Veatch Corporation. Tape 1, #48 - Councilmember Creighton moved to suspend the rules. Councilmember Snyder seconded the motion. Mr. Hunter introduced the study session and turned it over to Paul Menter. Mr. Menter explained that this is the first of two study sessions regarding the utility rate study with Black & Veatch. He stated that the preliminary study indicates that the utility rates will not have to be increased again this year. The water utility will have significant increases over the next four years to provide for capital improvements. Mr. Menter introduced Karen Johnson, the consultant with Black and Veatch Corporation. Ms. Johnson commented that this study session is to present a preliminary summary of utility rate study findings for the next five years for each of the utilities. The current issue is. Water and sewer utilities are not generating sufficient revenues to meet the projected revenue requirements. (This is due to the following incorrect assumptions of the previous study: active sewer accounts were significantly less than projected; errors in the 1998 historical water utility customer usage data reports; miscellaneous revenues and side sewer pit installation revenues were less than projected; administrative costs were eliminated from the data; and not all capital projects were not identified.) John Gow clarified that it was the 1999 Water and Sewer Comprehensive Plan, that was used in the rate study update to determine the five-year capital improvements for the utilities. Council requested that fresh waterway projects be specifically identified and funded. n conclusion: Water rate increases Jan 1, 2002 15%, Jan 1, 2003 15%, Jan 1, 2004 11%, Jan 1,2005 11%. Sewer rate increase 0% for 2002 through 2005. Storm rate increase 0% for 2002 through 2005. There was Council consensus to have Black & Veatch increase the annual debt service coverage to $250,000 for the waterworks utility. Tape 1, 1590 - Mayor Jordan directed the City Manager to provide the necessary potential energy increase information to Black & Veatch for the utility rate study update. DJH 01.16.2001 Page 1 of2

CTY COUNCL STUDY SESSON MNUTES JANUARY 16,2001 Utility Rate Study Discussion Continued: Golf Course Driving Range Project Mr. Menter recapped that Black & Veatch will bring back a couple of new scenarios and spell out the storm drain projects for Council in February. Mayor Jordan recessed the City Council Study Session at 6:50 PM. Mayor Jordan reconvened the City Council Study Session at 7:03 PM. Ocean Shores Golf Course potential driving range project. Ronnie Espedal reported on the history of the driving range. The driving range will be 170 yards long, 45 yards wide, enclosed by an 80-foot high netting, with five stalls. The driving range construction would be privately financed by the Ocean Shores Golf Course. Project cost is $150,000. After the driving range loan is paid the Golf Course would sell it to the City of Ocean Shores for a dollar. Golf Course requirements for construction of the driving range: Extend the lease with the City for four years. Restructure the Golf Course lease payments to the City. This would include eliminating the $2.00 add on fee payment, and increasing the gross threshold from $500,000 to $550,000 annually. Mr. Zander addressed the questions from the previous study session. He commented that the netting warranty is for seven years and is void if the wind exceeds 55 mph. The Golf Course will insure the netting through their insurance carrier. The $2 add on green fee will be used by the Golf Course to pay for the loan. Councilmembers Snyder, Creighton, and Samuels gave positive consensus to have a final draft contract brought to the Council. Mr. Hunter read a letter from citizen Denny Hieronymus in favor of the driving range. Tape 1, #3012 - Mayor Jordan directed the City Manager to proceed with a draft contract proposal for the Golf Course driving range. Tape 1, #3 03 9 - Councilmember Creighton moved to reinstate the rules. Councilmember Samuels seconded the motion. Tape 1, #3049 - Councilmember Creighton moved to adjourn the Study Session. Councilmember Samuels seconded the motion. Adjourn: SGNED: Mayor Jordan adjourned the City Council Study Session at 7:34 PM. Peter B. Jordan, Mayor ATTEST: Diane JJHtmston, City Clerk DJH 01.16.2001 Page 2 of2

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 22, 2001 Call to Order: Mayor Jordan called the Regular City Council meeting to order at 6:03 PM, at the Ocean Shores Convention Center. Council present: Mayor Jordan, Councilmembers Veitz, Creighton, Samuels, and Snyder. City Staff present: City Manager Dennis Hunter, City Attorney Jo- Ellen Thomas, nterim Finance Director Paul Menter, City Engineer/Public Works Director John Gow, City Planner Pat Smith, Public Works Technical Assistant Max Selin, Librarian Judy Stull, and City Clerk Diane Houston. Consent Agenda: Tape 1, #68 - The Consent Agenda passed unanimously. 1. Approval of Minutes for the Regular City Council Meeting on January 08, 2001. 2. Approval of Claim Warrants: #36868 through #37017 in the amount of $1 16,364.54 for January 22, 2001. Public Communications: Public Communication from written requests. None. Public Communication from Citizen Sign-in Sheet. Marj McBride commented on her support for the beach access trail. Old Council Business: Pt. Brown Bridge Project Update Washington Department of Transportation up-date discussion of the Pt. Brown Bridge Project. John Gow introduced Kelly Shield who introduced Gary Conner and Brian Moorehead from Department of Transportation. Ms. Shield provided an overview and update on environmental issues of the Pt. Brown Bridge construction project. The Hydraulic Project Approval (HPA) is the main issue. The Washington State Department of Fish & Wildlife is the approving agency. They have requested the old bridge be removed to mitigate the impact of the new bridge. Ms. Shield has informed Fish & Wildlife that there is no funding for removable of the old bridge. They are negotiating with Fish & Wildlife for alternate forms of mitigation. Mayor Jordan questioned if there would be utility access on the new bridge. Ms. Shield and Mr. Conner explained that due to funding limitations utility access is not included in the current bridge design. There was agreement that the bridge would be designed with utility access and that the bid packet would include it as an added alternate. Mr. Hunter inquired if there would be an additional design cost for the utility access. There would be $1,000 to $2,000 additional design cost. Tape 1, #552 - There was Council consensus to include the utility access in the bridge design and include it as an additive alternate for the biding process. The engineering design cost to date is $120,000, and $20,000 additional is estimated. This amount is not over the original design forecast. DOT confirmed that they are proceeding to construct the Pt. Brown Bridge in the next eighteen months at no cost to the City of Ocean Shores. DJH 01.22.2001 Page 1 of 5

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 22, 2001 New Council Business: Ordinance: 1 8t Reading Amending Nonaccessory Structure Ordinance Ordinance: 1** Reading Amending the City Attorney's Duties An Ordinance dealing with nonaccessory structures and amending Title 17, Section 17.50.115 (J) of the Ocean Shores Municipal Code. Ms. Thomas gave the first reading of the Ordinance dealing with amending the nonaccessory Ordinance No. 692. She explained that the original Ordnance referenced a code that does not exist. This Ordinance amends and corrects the referenced code. There was no public comment. An Ordinance of the City of Ocean Shores amending Chapter 2.05 of the Ocean Shores Municipal Code at 2.05.10 through 2.05.40 and thereby establishing the appointment of City Attorney, and redefining the powers and duties thereof. Ms. Thomas gave the first reading of the Ordinance by title. The Ordinance removes the Director of Administration duties from the City Attorney's position. There was no public comment. Ordinance No. 709: Dunes Protection Act An Ordinance of the City Council of the City of Ocean Shores Amending Ocean Shores Municipal Code Chapter 18.56, the Ocean Dunes Protection Act. Ms. Thomas gave the second reading of the Ordinance by title. She explained that this Ordinance changes the authority to grant variances from the Public Works Director to the City Council. Also, there is a correction to the Ordinance changing Section 18.56.130 to Section 18.56.120. Tape 1, #954 - Councilmember Creighton moved to approve the Ordinance as written with the noted changes. Councilmember Veitz seconded the motion. Public Hearing: Ocean Dunes Protection Act for Beach Access Trail and Transit Station A Public Hearing to receive public testimony and comment on variances to the Ocean Dunes Protection Act for development of a beach access trail south of Chance A La Mer, and construction of a new transit station to replace the existing shelter. Tape 1, #990 - Councilmember Veitz moved to recess the Regular City Council meeting to convene into the Public Hearing to hear testimony on the variances. Councilmember Snyder seconded the motion. Mr. Gow clarified that each variance will be separately presented to the public for testimony. Testimony was called for on the Beach Access Trail: John Takagi commented in favor of the trail. Bill Heinlein commented in favor of the trail and the transit station. Bob Rhoades commented in favor of a boardwalk rather than a trail or anything that helps everyone get to the beach. Norm Schut testified strongly in support of the beach access trail. DJH 01.22.2001 Page 2 of 5

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 22, 2001 Public Hearing Continued: Ocean Dunes Protection Act for Beach Access Trail and Transit Station Jeanne Finke testified in favor of the beach access trail. Testimony was called for on the Transit Station: There was no testimony from the public. Tape 1, #1443 - Mayor Jordan closed the Public Hearing and reconvened into Regular Council Meeting. Variance: Transit Station A proposed variance to construct a new transit station to replace the existing shelter on Chance a la Mer across from the Shilo Beachfront Hotel. Ms. Smith commented that staff recommends approval of the variance for the proposed transit station. Ms. Smith introduced Will Foster with Street, Lundgren, and Foster Archtitects. Mr. Foster gave a slide presentation regarding the Transit Station. He commented that the dune grass would be replanted after construction, and the station design is unique for Ocean Shores. There was Council discussion regarding concerns about the winds and blowing sand, and the lack of a shield at the back of the transit station. Mr. Foster commented that the transit station cost is $100,000. There was public comment regarding concerns about the sand, wind, and comfort while waiting for the bus. Tape 1, #2212 - Councilmember Veitz moved to approve the variance for the construction of the new transit station; with a new rear wall design incorporating considerations discussed. Final design to be brought to Council for approval. Councilmember Snyder seconded the motion. Variance: Beach Access Trail A proposed variance to construct a beach access trail just inside the southern boundary of Chance a la Mer. Ms. Smith commented that this variance is to allow for a beach access trail. The trail would be approximately ten feet wide, 650 feet long, and constructed of rough concrete. Ms. Smith requested Council approval of the variance. Foster Rodda gave a slide presentation of the proposed Beach Access Trail. He commented that the trail would begin at the end of the Chance a la Mer south side sidewalk. The path will have benches, signs to identify the trail, and interpretive signs. There was council discussion regarding wheelchair access, grants for funding, and moped traffic. Mayor Jordan asked the City Manager for clarification of the issue under discussion. t is strictly a land use issue granting a variance to build a path. The granting of the variance does not mean the path would be constructed. There was public comment regarding a wheelchair holding area at the beach end of the trail. Tape 1 #3372 - Councilmember Veitz moved to grant the variance as proposed. Councilmember Snyder seconded the motion. DJH 01.22.2001 Page 3 of 5

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 22, 2001 New Council Business Continued: Request: Grant Application for the Beach Access Trail Project Staff request City Council authorization to apply for a Grant with Coastal Zone Management for the Beach Access Trail at the southern boundary of Chance a la Mer. Also a request to reserve the matching funds required for the Grant. Ms. Smith requested Council approval to apply for a Grant for the Beach Access Trail. The grant application deadline is February 1, 2001. f the City receives the Grant, the funds are available from July 1, 2001 through June 30, 2002. The City is required to spend an equal amount, which would be $40,000. Other Grants are being pursued for the trail funding. The Council discussed that there is time to explore additional funding possibilities, and that giving approval for the Grant application does not commit the City to build a trail. Tape 1, #3764 - Councilmember Snyder moved to authorize staff to apply for the CZM Grant and to reserve the required funds. Councilmember Samuels seconded the motion. Resolution No 439: Grays Harbor County Comprehensive Solid Waste Management Plan, Ocean Shores to be included A Resolution of the City Council of the City of Ocean shores authorizing Grays Harbor County to include the City of Ocean Shores n an amendment of the Grays Harbor County Comprehensive Solid Waste Management Plan. Mr. Gow read a letter received January 4, 2001 from Grays Harbor County regarding the update to the 1991 Comprehensive Solid Waste Management Plan. Mr. Gow commented that he found nothing in the Comp Plan that conflicts with the existing City's Solid Waste Ordinance. He recommended that the Council authorize the City to participate in the County's Comprehensive Solid Waste Management Plan. There was Council discussion regarding unfunded State mandates, such as the County Comprehensive Solid Waste Management Plan update, and that they should be paid for by the State. There was public comment regarding how the County's Comprehensive Plan benefits the City and what the cost is for the City. The City is included in the County's Plan to avoid having to prepare a Plan for the City's solid waste disposal. Mr. Hunter commented that the State and Federal governments require management of solid waste. The Federal government does not provide funds to the State and the State to the County to review the Plan and meet Environmental requirements. Tape 2, #554 - Councilmember Veitz moved to approve the Resolution as presented. Adding a caveat that if the Plan is an unfunded mandate it is strongly recommended that language is included prior to submission requiring the Plan to be a funded mandate at the next update. Councilmember Snyder seconded the motion. DJH 01.22.2001 Page 4 of 5

REGULAR CTY COUNCL MEETNG MNUTES JANUARY 22, 2001 New Council Business Continued: Bid Award: Ocean Shores Convention Center Sign A Request for City Council approval to award the contract for a new sign at the Ocean Snores Convention Center. The Sign Company was the low bidder with a total bid amount of $49,234.25. Ms. Selin stated that four bids were received and there was one non responsive bidder. She recommended the bid be awarded to The Sign Company, The low bid was $49,234.25, which included the wireless control additive alternative. There was no public comment. Mr. Menter commented that the 2000 budgeted special revenue funds have lapsed for the Convention Center sign project. He suggested that Council include in the motion approving the bid award, payment from unappropriated reserves in the Hotel/Motel tax revenues. Tape 2, #725 - Councilmember Veitz moved to approve the bid award to the Sign Company with additive alternative #1 for the wireless remote. That the project be funded from unappropriated Convention and Tourism fund reserves. Councilmember Snyder seconded the motion. City Manager's Report: Mr. Hunter reported that he has met with most of the staff and many organization in the City and is pleased with the attitude of staff and citizens. Mr. Gow reported on the jetty maintenance project. The Corps of Engineers has stopped work and spent the approximate 5.3 million dollars appropriated for the project. The project work did not get as far east as the City hoped. The City does plan to pursue additional funding to complete the project, approximately 3 million dollars is needed. Announcements: Appointments: Mayor Jordan announced two Board openings. The Library Board and the Planning Commission applications are being accepted at City Hall by the City Manager. None. Executive Session: None. Adjourn: Signed: Tape 2, #1015 - Councilmember Creighton moved to adjourn the Regular City Council meeting. Councilmember Snyder seconded the motion. Mayor Jordan adjourned the Regular City Council meeting at 8:03 PM. Attest: Diane J. Houston, City Clerk DJH 01.22.2001 Page 5 of 5