Council present Councilmembers Crumpacker, Berry, Creighton, Johnson, Skewis, and French. Council excused: Councilmember Patrick.

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1 Call to Order: Mayor Bunkers ca lled the Regular City Council Meeting to order at 6:00 PM, at the Ocean Shores Convention Center. The meeting was audio and video taped. Council present Councilmembers Crumpacker, Berry, Creighton, Johnson, Skewis, and French. Council excused: Councilmember Patrick. City Staff present: Mayor Dean Bunkers, City Attorney Art Blauvelt, Finance Director Art Wuerth, Police Chief Mike Styner, Water Treatment Crew Chief Lee Fundenberger, Librarian Judy Stu ll, Senior Library Technician Michelle Olson, Public Works Director Ken Lanfear, and City Clerk Diane Foss. Others present: Bill Persich with Brown and Caldwell. Roll Call: City Clerk Foss called roll. Tape 1, #23 - Councilmember Crumpacker made the motion to excuse Councilmember Patrick. Councilmember Creighton Flag Salute: Councilmember Creighton led the flag salute. Meeting Agenda Approval: Ceremonies and Proclamations: Judy Stull Thirty Years of City Service Public Communication to Council: Tape 1, #48 - Councilmember Johnson made the motion to approve the Meeting Agenda. Councilmember Crumpacker Mayor Bunkers presented Judy Stull with an appreciation plaque and commended her for thirty years of dedicated service to the Ocean Shores Library and community of Ocean Shores. Melodie Youngs introduced three foreign exchange students; their civic curriculum includes observation of state and local government and community service; and commented in favor of the EMS levy. Edson Engle th anked Mayor Bunkers for assisting with his fire permit. Invited the public and Council to attend the Washington Coalition for Open Government at the Lions Club Friday, August 28 at 2:30 p.m. Lynn Kessler and Toby Dickson will be speaking. AI Lizakowski commented on a preliminary EMS ambulance billing audit report he created. Suggested changes, requested Council implement the changes, and asked for a response within two weeks. Walt Hill commented that EMS billing is being managed incorrectly. Donald Williams commented on the fire station construction budget; and EMS levy is an increase to Ocean Shores' citizens property taxes. Page 1 of 7

2 Announcements: Appointments: Council Reports: Mayor Bunkers announced that there are two member and two alternate vacancies on the Building Code Board of Appeals, and one vacancy each on the Public Works Advisory Committee, and Planning Commission. None. Councilmember Berry attended the State Auditors Exit Conference, LEOFF I Disability Board Meeting, and the Promotions Advisory Committee meeting. The Summers Eves promotion is successful. Read a holiday letter from McPherson Realtors dated December 16, 1960; in 1960 thirty miles of roads were graded and graveled, more than 1,400 lots were sold, and that Ocean Shores would become a national byword. Attended Interpretive Center Operating Committee meeting; year to date visitor count is 16,844; attendance has increased by 1,100 over last year; and attended the Chamber of Commerce Candidate Forum. Councilmember Johnson attended the Library board meeting; summer programs have included a wacky Wednesday program, magic show, pets program, and a teen program. Friends of the Library have donated $1,000 each to the youth and teen programs. County Commissioner Carter requested Council of Governments (COG) assistance with writing a grant to create jobs in wind action for electricity; Council disagreed with the request. Councilmember Crumpacker commented that a facilities maintenance plan should be included in the budget process. Mayor's Report: Other Reports: Staff Report: Roundabout Construction Mayor Bunkers reported the following : The State of Washington will hold the last of three workshops regarding State Parks from 7:00 to 9:00 PM on Wednesday, September 9 at Shilo Inn. Attended Exit Conference held by State Auditor regarding the City's financial report; the final report will be available soon. Fire station construction was budgeted for $4,650,623; to date the City has contracted for $3,927, leaving a balance of $722,644.61; largest item remaining is the paving of the parking lot; should be able to finish the fire station within budget. An EMS brief will be given at the next council meeting with levy comparisons made to other Grays Harbor cities. None. Mayor Bunkers requested Mr. Lanfear to report on the roundabout construction. Ken Lanfear reported that crews are working on the roundabout in the intersection of Chance and Pt Brown and surrounding streets to dewater and install the deep sanitary sewer. Steel plates will be placed over the dig-outs for traffic access during the Labor Day weekend, but there may be times during construction when the intersection will be closed with detour routes provided. A letter was mailed to businesses regarding roundabout construction, and a handout was Page 2 of 7

3 Staff Report Roundabout Construction delivered to businesses on Saturday. There were Council questions regarding the meaning of dewatering. The sanitary sewer line depth is approximately seventeen feet and the water table is at five to six foot. Dewatering means to remove the water from the soil, this is being done for placement of underground utilities. Consent Agenda: Tape 1, # Councilmember Skewis made the motion to approve the Consent Agenda. Councilmember Crumpacker The Consent Agenda included: 1. Approval of minutes for the City Council Study Session on July and Regular City Council Meeting on August Approval of Claim Warrants #64364 through # in the amount of $155, dated this 241h day of August Approval of Treasurer's Checks #11633 through #11683 plus #11690 and #11693 and Wires # through # in the amount of $765, for the month of July Old Council : Ordinance No 868: 2' Reading Amending Chapter 6.04 Animals An Ordinance of the City Councit of the City of Ocean Shores, Washington, amending Ocean Shores Municipal Code Chapter 6.04 Animals, to define administrative authority, and to set fees, amending Ordinance Numbers 802 and 536. Ken Lanfear presented the revised ordinance with the addition of a lifetime license for altered dogs and cats. He gave the second reading of the Ordinance by title. There was Council discussion that rabies control and identification are the main reasons for licensing animals; in favor of a three-yea r license because rabies vaccinations are three years; concern about loss of control regarding rabies vaccinations with a lifetime license; equalization of fees for unaltered and altered dogs and cats; in favor of lower animal license fees; and have a local veterinarian assist with a rabies and license clinic. Mayor Bunkers commented that rabies vaccination is important because of the Ocean Shores wildlife and fees for animal licenses assist with the cost for animal control. There was Council and staff discussion regarding yearly notification to licensed animal owners for rabies vaccination; ready to proceed with the ordinance; action is needed to get people to license their animals; a vaccine clinic is held twice a year in Hoquiam; the new financial software will have the capability to monitor animal licenses and be programmed to notify owners their animals need to be vaccinated. There was public comment regarding encouraging compliance for pet licensing by combining a low cost vaccine clinic, micro chip tagging, and licensing at the same time; suggestion that police officers enforce pet licenses; charge higher fees for impound and boarding to raise more revenue; and it is not Page 3 of 7

4 Old Council Ordinance No. 868: Amending Chapter 6.04 Animals government business to monitor animals. Tape 1, # Councilmember Creighton made the motion to approve the Ordinance as presented. Councilmember Crumpacker seconded the motion. The Motion passed with five yes votes and one no vote by Councilmember French. Sale of Fire Station Property A Request for City Council to determine and set a "fair market value" for the current fire station property and method to sell the property. Also, discussion on creating an ordinance replacing Resolution No. 515 establishing the procedures for the sale of surplus real property. Art Wuerth presented the request for the sale of real estate located at 676 Point Brown Ave NE that is currently the fire station. Would like Council to consider the creation of an ordinance to establish procedures for disposal of real property in place of Resolution No. 515 which is being used for this sale. Requested Council to set a fair market value of the property and a method to sell the property. The appraisal report suggested $250,000 as the fair market value. Options for the disposition of real property include receiving sealed bids, auction, or a negotiated sale. Suggested to Council that the City accept sealed bids within ten percent of the fair market value for the property. There were Council questions regarding how to reconcile Grays Harbor County's assessed property value with the appraisal report value; and to get a second appraisal. There was Council and staff discussion regarding the market will determine the value of the property; selling the current fire station through a sealed bid process; the County's assessed valuation was based on the City's highest value; having a second appraisal performed; and a minimum bid should be set for the property. Art Blauvelt commented that the options listed in Resolution No. 515 need to be used or the resolution needs to be changed. Determine a price and acceptance figure for the property or list the property with a broker fo r a suggested price. Then give authority to the Mayor as to what value he can accept for the property. There was Council discussion regarding not waiting to sell the current fire station; the property should be listed at $250,000; all City owned property should be marketed with a single realtor; how a sealed bid process would work; and changing the resolution to an ordinance for the sale of City property. Art Blauvelt commented that an advertisement needs to be placed in the newspaper for the sale of the property and sealed bids can be received within thirty days. Suggested updating the resolution for surplus of City real property and not creating an ordinance for that purpose. There was public comment regarding all City properties should be sold by a bid process so that the market dictates the price; data used by the County assessor's office may not be current; improvements are being made to the commercial area Page 4 of 7

5 Old Council Sale of Fire Station Property surrounding the property; and the sale of the property should be accelerated. Tape 2, #759 - Counci/member Creighton made the Motion to approve the request as presented and setting the price at $250,000. Counci/member Crumpacker seconded the motion. There were Council questions regarding whether $250,000 is the minimum price the Mayor can authorize for the sales contract; and will the sale agreement come back to Council for final approval. Art Blauvelt commented that the Mayor can accept a bid that is ninety percent of $250,000 and that the final sales contract would be brought to Council for approval. Tape 2, #826 - The Motion passed unanimously. There was Council consensus to bring an Ordinance back to Council for procedures to sale City property at the request of the State Auditor. : Resolution No,621: Sole Source Orica Watercare, Inc, Purchase of MIEX WTTP Equipment A Resolution of the City Council of the City of Ocean Shores, Washington, approving a sale source purchase of MIEX resin and process equipment from Orica Watercare, Inc. Ken Lanfear read the Resolution by title. Asked for Council approval for a sale source purchase as Orica Watercare, Inc. is the sale provider of MIEX resin and equipment. There was Council discussion regarding a total plan and cost should be presented to Council before more funding decisions are made concerning the new water treatment plant. Ken Lanfear commented that MIEX and Orica Watercare would not work with Brown and Caldwell to design the new water treatment plant if they did not have the contract to build the plant. Items are being presented to Council separately because of the amount of time necessary to produce the equipment and the deadline to break ground for the new water treatment plant. There was no public comment. Tape 2, # CouncilmemberCrumpackermade the Motion to approve the Resolution as presented. Councilmember Skewis seconded the motion. The motion passed with five yes votes and one no vote by Councilmember French. Purchase of MIEX Water Treatment Plant Equipment A Request for City Council to approve the purchase of the 2.0 MGD pressurized MIEX Water Treatment Plant equipment from Orica Watercare, Inc. at a total cost of $2,024,127. Ken Lanfear presented the request for Council approval of the purchase of MIEX water treatment plant equipment from Orica Watercare, Inc. for a total cost of $2,024,127. This request is about one third of the new water treatment plant costs. Page 5 of 7

6 Purchase of MIEX Water Treatment Plant Equipment Bill Persich commented that the overall cost of the system is about two million dollars for a 2.0 MGD plant. The equipment costs associated with the project produced by Orica Watercare, Inc. have remained consistent during project process. The total cost has increased because of additional equipment and sales tax which are included in the total cost. There were Council questions regarding the cost of the equipment in relation to the budget; the listed costs have increased from previous presentations; and opposed to approval of requests until a total project plan is presented. Mayor Bunkers commented that the cost of a new water treatment plant will not be more than 7.4 million dollars. In September a report will be presented outlining the total project. There were Council questions regarding complexity of the project setup and equipment installation, and will the equipment be partially assembled upon arrival. Bi[[ Persich commented that vendor prices include the cost of equipment installation. There was public comment regarding maintenance for the new water treatment plant; and where the project room is located and is it open to the public. There was staff discussion regarding the water treatment plant project room location is at the City Hall Council Chambers and a chart will display a construction time[ine. Maintenance costs may decrease due to the use of fewer chemicals; electrical costs may increase; there wil[ be no increase in staff; so overall operation costs may be similar to current levels. There were additional Council questions regarding the use of sodium chloride and sodium bicarbonate used in the water treatment: and the expected completion date. Bill Persich commented that the sodium chloride method is preferred by Orica. Home water softeners may create a possible interference with sodium chloride. Test results show the sodium chloride leve[s to be minimal to work with home water softeners. The current projection is to go out for bid in December. The project is currently on schedule; approval of the MIEX equipment purchase will further help the project schedule. Once construction begins the new water treatment plant should be completed in twelve to eighteen months. Tape 2, # Councilmember Creighton made the motion to approve the request as presented. Councilmember Crumpacker seconded the motion. The Motion passed with five yes votes and one no vote by Councilmember French. Approve Grant Offer for Airport Lighting Project A Request for City Council approval of a FAA grant offer for Airport AlP Project Number to supplement previous funding for airport lighting and NAVAIO project. Ken Lanfear presented the request for Council approval of a FAA grant to supplement previous airport lighting funding. It is a portion of the ninety-five percent funding of airport Regular Meeti ng Pag e 6 of 7

7 Approve Grant Offer for Airport Lighting Project improvements. Asked Council approval to accept the grant. There were Council questions regarding whether there are City funds required for the grant: Mr. Lanfear responded that no City funds are required. There was no public comment. Tape 2, # Councifmember Johnson made motion to approve the request as presented. Councilmember Berry Executive Session: None. Adjourn: Mayor Bunkers adjourned the Regular City Council meeting at 8:22 PM. Signed: Attest: ~w,g~_.-q LaDean W. Bunkers, Mayor ~,.~ Diane J. Fo~ CMCCitYCierk Page 7 of 7

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