The Board of Island County Commissioners, including Diking Improvement District #4 met in Regular Session on July 21, 1997, beginning at 9:30 a.m., in the Island County Courthouse Annex, Hearing Room, Coupeville, Wa. Mike Shelton, Chairman, , and Tom Shaughnessy, Member, were present. Wm. L. McDowell, Member, arrived at 10:05 a.m. Also in attendance were Margaret Rosenkranz, Auditor/Clerk of the Board, and E. Meyer, Secy. to the Board.

The following vouchers/warrants were approved for payment by unanimous motion of the Board:

Lee McFarland, GSA/Parks Superintendent, presented two projects for the Board’s approval from 1997 Conservation Futures Program Project applications. The two projects were submitted by Friends of Camano Island Parks. The Conservation Futures Technical Advisory Group (TAG) recommended to the Conservation Futures Citizens Advisory Board (CAB) approval. After review and public hearing held on Camano Island, both projects received unanimous support to forward their recommendation to fund these two projects:

On behalf of the Board and Island County citizens, Commissioner Shaughnessy expressed thanks

to the Karen Hamaleinen and her family for their extremely generous donation.

By unanimous motion the Board approved proceeding with the purchase of the English Boom property and Dry Lake Property.

By unanimous motion, the Board reappointed Janice Pickard, Coupeville, and Page Gilbert-Baenen, Greenbank, to the Island County Mental Health and Substance Abuse Advisory Board for three year terms to July 1, 2000.

Read a newspaper account several weeks ago about development rights not going forward and was concerned that the County spent hundreds of thousands of dollars with nothing done in 20 years. He was deeply concerned about surface water and water from building activities that comes down on his property and causes drainage problems. He wants the County to fix it or keep it maintained until it is permanently fixed. He has a house he worked for all his life and paid taxes for 50 years.

Mr. Hitt appeared representing the EDC and the Off-Season Tourism Promotion Committee. The 4th quarter tourist related tax revenue 1996 in Island County was up 4% or $340,000, from 1995, which relates in sales tax dollars received to the County of about $34,000 in new tax revenue. A survey done by the Oak Harbor Chamber of Commerce on the results of the program indicate that over 35% of those who responded to the off-season marketing campaign indicted that the materials received were either a major reason or an important reason for them deciding to visit Island County. So far over 4,000 responses have been received to the advertising. The primary off season brochure distribution is almost at 20,000 (the entire first run printing).

Mr. McFarland confirmed the proposed Addendum to the Use and Occupancy Agreement for the Family Resource Center at Oak Harbor had been reviewed and recommended for approval by Prosecutor and Risk Manager. The Addendum adjusts charges as allowed in paragraph 4.1 of the agreement shown on Exhibit B and to changes the agreement provisions regarding effective date of adjustment.

By unanimous motion, the Board approved and signed Addendum #1 to the Use and Occupancy Agreement for the Oak Harbor Family Resource Center between (1) Island County and the Island County Health Department; (2) Island County and Whidbey Island Public Hospital District; and (3) Island County and The Opportunity Council.

As presented for signature by Mr. McFarland, on behalf of Betty Kemp, GSA Director/Risk Manager, the Board by unanimous motion approved and signed Skagit County Medical Bureau Contracts for Island County, to be sent on for Skagit Medical’s CEO signature. This Contract was reviewed and recommended for approval by Betty Kemp.

On unanimous motion, the Board scheduled a public hearing for August 11 at 10:45 a.m. for the purpose of considering the Solid Waste Rate Study and Rate Structure for 1998-2000.

Larry Kwarsick, Director, Public Works Department, advised that in moving toward the July 23rd special session to consider the adoption of a bond resolution; today is pre-pricing day on the bond market and Seafirst Bank determining interest, with tomorrow pricing and sale. An article on Greenbank Farms made this morning’s P.I.

Item deleted from agenda; no bids received for Camano Fuel System, under PWP 1-97, Work Order #32. Having spoken with several contractors, Mr. Kwarsick learned that this perhaps was not the best time for this project to be out for bid since there is a lot of work for contractors at this time. Another consideration will be to break out the work into two different projects, (1) fuel system; (2) water system, and by virtue of engineering estimates perhaps doing those through small works roster process.

Roy L. Allen, Island County Engineer, reported the recommendation of the Engineer with regard to bid award for the Humphrey Road Drainage project (Mitchell/Hartzell) as outlined in his memorandum dated July 17, 1997. Three bids were received, the low bid from Lyrch and Associates, in the amount of $89,551.07, some $45,312.60 lower than the government estimate and $60,199.46 lower than the next low bid, and he recommended bid to Lyrch and Associates. By unanimous motion, the Board awarded bid to Lyrch and Associates as recommended by the County Engineer in the amount of $89,551.07.

A Public Hearing was held at 10:30 a.m. as scheduled and advertised for the purpose of considering Franchise Application #292 by Mark Greene for an existing water distribution system which is also to be upgraded. The system is located in County Roads known as Campbell Road, Olmstead Road and Bob Galbreath Road, South Whidbey. According to Mr. Allen, the water distribution system will provide water to properties involved in Short Plat #149/97, and the upgrade proposed will better serve the properties involved. The proposal received approval from the Health Department and no objections received from any other department. The franchise was reviewed by the Island County Prosecuting Attorney’s Office as to form and by Risk Management and received approval from both. Therefore, Mr. Allen recommended granting the franchise as requested.

No comments either for or against the proposed franchise were made from any member of the public at the hearing.

By unanimous motion, the Board approved Franchise #292 as recommended.

A Public Hearing was held as scheduled and advertised at 10:35 a.m. to consider Franchise #14(1) R[renewal] by Tyee Beach Improvement Club for existing and new waterlines in Camano Boulevard, Beach Drive, and Shoreline Drive in Tyee Beach #1 - 3, Camano Island. Mr. Allen reviewed the application submitted by Bill James, President, Tyee Beach Improvement Club, for the expansion and upgrade of an existing water distribution system. The club suffered substantial damage to the water system as a result of the winter storm and because of those damages, are expanding the existing water distribution system and upgrades. The project has already received approval from the Washington Department of Health and Island County Health Department. There were no objections received from other county departments. The Prosecuting Attorney’s Office reviewed the franchise and approved as to form, and the Risk Management office approved same. Mr. Allen recommended that the Board grant approval of the franchise.

No comments, either for or against this proposal, were received at this time.

By unanimous motion, the Board approved Tyee Beach Improvement Club Franchise #14(1)R.

Presented next by Mr. Kwarsick was an Abutter’s Agreement between Island County and Seattle Pacific University and the Island Discovery School pertaining to the flashing school signal installed at the site. The agreement gives the County permission to have the existing controlling system on the owner’s property. The owner will provide power to the facility and pay the utility cost, and Island County will be responsible to maintain the flashing light system.

By unanimous motion, the Board approved Abutter’s Agreement between Island County and Seattle Pacific University/Island Discovery School.

As presented and recommended for approval by the Public Works Director, the Board by unanimous motion approved Supplemental Agreement #2 to the contract with Adams & Clark/Datum Pacific, for West Beach Phase 3 project under CRP #96-04 to extend the time of completion to October 1, 1997.

As explained by Mr. Kwarsick, there is no cost increase associated with this Supplement; time extension necessary as a result of the Department’s inability to review plans in a timely fashion because of the many projects following the winter storms.

Based on recommendation by the County Engineer and Public Works Director, the Board approved by unanimous motion, Resolution #R-48-97 to initiate County Road Project 97-07, work order #114, Whidbey Island asphalt concrete overlays for 1997, for a total appropriation of $603,400.00. The contract construction portion was previously awarded to the low bidder, Krieg Construction Company.

Maintenance and Service Agreement between Island County and Pioneer Farms for mowing of Patmore Pit site to occur twice a year was presented for the Board’s approval. Intention is to abate any fire hazard on the property. The only consideration in the agreement is that the contractor will retain ownership in the harvestable silage and/or hay. Agreement was reviewed by Risk Management and the Prosecuting Attorney’s Office. Responding to Commissioner McDowell’s question whether or not twice a year was roughly a equitable dollar value exchange, Mr. Kwarsick believed it was an equitable exchange.

By unanimous motion, the Board approved the Maintenance and Service Agreement for Patmore Pit Site between Island County and Pioneer Farms.

As presented by Dick Toft, Director, Human Resources, the Board by unanimous motion, approved two Personnel Action Authorizations as listed below:

PAA #67,97, Planning Department, Administrative Assistant, Position #1713.00,

Replacement, effective date 7/21/97

PAA #68/97, Auditor’ Office, Deputy Auditor-Auditing, Temporary, 6 weeks

Position #211.00, effective 7/21/97.

Presented for preliminary approval was SPR 498/96 by Richard Socha, Parcel R13221-509-0340, Institutional Use - Offsite community septic tank treatment system for up to 46 single family residences in Plat of Rolling Hills, North Whidbey. The recommendation of the Hearing Examiner was for approval with conditions, as outlined in his Findings of Fact, Conclusions of Law and Recommendation signed July 7, 1997. Richard Socha, Applicant, and Les Killingsworth, Datum Pacific, and Dave Stewart, Datum Pacific, Applicant’s Engineer, were present.

Erika Jensen, Associate Planner, confirmed the Hearing Examiner’s recommendation of approval with conditions. Neighbors had been upset about the proposal concerning items which the State Department of Health was the approval agency, the main concerns with potential failure of the community drainfield. The site will only be used as a community drainfield for those 46 lots. It is a 5 acre site, and will have no land use impact on the surrounding area. This proposal requires final SPR approval, along with final approvals from the State Department of Health. All of the lots the drainfield proposes to serve are already vested lots, currently lots which do not perc in the plat of Rolling Hills. Mr. Socha owns the property and has hired Datum Pacific to do the engineering on the system, with municipal oversight entity to be the Holmes Harbor Water District.

Mr. Socha, 1990 Sweet Briar, Oak Harbor, confirmed he owns the property proposed for the community drainfield. He has started to purchase the 46 lots; of those he has purchased 4 and intends to purchase all.. The community drainfield location was selected because it is the best perc. For those who may select not to sell him the lots, he has made some verbal contracts to provide them with a connection for a price. Mr. Socha confirmed he agreed with all conditions

placed by the Hearing Examiner. There is a sewer association set up for this program who can govern themselves. Holmes Harbor Water District will take over the governing part if at any time the association cannot govern themselves.

Commissioner McDowell had a question on Condition #2 which reads: "the applicant shall comply with the Island County Engineering Department’s requirements as specified in the memoranda from Bud Fry to Erika Jensen dated May 9 and January 31, 1997, copies of which are attached hereto and incorporated herein by this reference". The 1/31/97 memo Item #7 states that "all installation and construction shall be subject to inspection by the Island County Road Shop Supervisor, Marv Koorn". It is all well and good if the County wants to supervise, but that in no way relieves the responsibility of the owner to provide inspection by the engineering firm hired - the one "on the hook" is really the engineer of record. Therefore, he suggested amendment of item #7 by stating: "all installation and construction shall be subject to inspection by the project engineer of record and observation by Island County Road Shop Supervisor". Mr. Socha had no problem with that.

Commissioner Shaughnessy moved approval of preliminary site plan review SPR 498/96 by Richard Socha, with suggested change on item #7 in the letter from Bud Fry to Erika Jensen dated 1/31/97 that "all installation and construction shall be subject to inspection by the project engineer of record and observation by Island County Road Shop supervisor.". Motion, seconded by Commissioner McDowell, carried unanimously.

Maxine Sauter, Island County Treasurer, provided the Treasurer’s Current & YTD Cash Report

as of June 30, 1997. She reported that revenues appeared to be on target, with ending cash balance about $156,000 ahead of last year at this time. Report provided under date July 8, 1997 (copy placed on file) shows 56% revenues collected and 54% in expenditures. Investment Report as of July 16 shows: Current Expense residual invested $16,400,000; School District #201, $26,830,000; School District #206, $2,500,000; Whidbey General Hospital - $2, 900,000 general fund and $2,330,000 building fund; and Construction and Acquisition up to $1,500,000.

Initial 1998 Budget Workshop with Auditor

The Auditor’s budget letter went out to departments July 14, 1997 and provided the following budget dates:

August 11 Department budget revenues and expenditures to Auditor

September 2 Auditor submits preliminary budget to Board

September 8-October 31 - budget workshops to be scheduled

The Chairman indicated that the Board would within this week or so schedule specific dates and times for budget workshops between September 8 and October 31. That schedule will be provided to departments with the Board’s budget letter on or before August 1.

There being no further business to come before the Board at this time, the

Chairman adjourned the meeting at 11:15 a.m., to meet next in Special

Session on Wednesday, July 23, 1997, at 10:00 a.m.

______________________________

Mike Shelton, Chairman

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Wm. L. McDowell, Member

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Attest: Tom Shaughnessy, Member

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Margaret Rosenkranz, County Auditor

& Ex-Officio Clerk of the Board