The Board of Island County Commissioners (including Diking Improvement District #4) met in Regular Session on December 14, 1998, beginning at 9:30 a.m., in the Island County Courthouse Annex, Hearing Room, Coupeville, Wa. Wm. L. McDowell, Chairman, Tom Shaughnessy, Member, and Mike Shelton, Member, were present.

On unanimous motion of the Board, Wm. F. "Bill" Thorn, Commissioner-elect, was appointed as the Elected Official from Island County to sit on the Island Transit Board of Directors beginning in January of 1999, along with Commissioner Wm. L. "Mac" McDowell.

Health 122/98 PHC 2408.04 Personnel 1/1/99

Health 109/98 PHC 2408.05 Personnel 12/1/98

Health 110/98 PHN 2406.07 Personnel 1/1/99

Health 121/98 PHN 2406.13 New Position 1/1/99

Referring the four PAA’s from the Health Department, Dick Toft, Human Resources Director, advised the actions came as a result of end of the year re-arranging of hours and funds.

Board Action: By unanimous motion, the Board approved PAA 122/98, 110/98 and 121/98 effective 1/1/99, and PAA 109/98 effective 12/1/98.

Sheriff 107/98 Jail Supt. 4003 Replacement 1/1/99

PAA 107/98 represents the last action restructuring within the jail department. One Lieutenant has been moved to a corrections deputy, the individual who served as Jail Superintendent was moved to Jail Lieutenant. This PAA is to re-establish the Sheriff’s RCW-authorized appointed position of Jail Superintendent effective 1/1/99.

The Budget Director’s note on the PAA indicates that re-establishment of this position will create need for additional funds for this budget, and he assumed that had been covered for 1999. Ms. Rosenkranz explained that the 1999 budget contained provisions for 3 Lieutenants; this changes that to 2 Lieutenants and 1 Superintendent; the Superintendent’s salary is higher than the Lieutenant.

Ms. Rosenkranz recalled that the Sheriff’s 1997 budget was fully funded from Commissioner Contingency; generally speaking the only thing that draws it over is the overtime budget that was supplied. She could not say for sure the amount that would be needed inasmuch as she had not had an opportunity to review the numbers.

Board Action: Unanimous motion approving PAA 107/98 effective 1/1/99, subject to the Sheriff working out the budget details with the Budget Director.

Pros. Atty. 111/98 Legal Secy/Off Adm. 1806 Replacement 3/1/99

Pros. Atty. 114/98 Legal Secy/Felony 1815 New Position 1/1/99

PAA 111/98—replacement, current employee departure date 2/28/99. With 50% leave buy-out, rehire date would be 4/12/99; with 100% buy-out would require additional funds, and provide refill date 3/1/99. PAA 114/98 is for a legal secretary, a new position approved in the new budget for 1999.

Board Action: Unanimous motion approving PAA effective 3/1/99, and PAA 114/98 approved effective 1/1/99.

Pub. Works 112/98 County Engineer 2200 1/1/99

Pub. Works 113/98 Asst. PW Dir/Sur W.Mg 2201 New Position 1/1/99

PAA 113/98 re-identifies the Assistant Public Works Officer as the Surface Water Manager and still retaining the title of Assistant Public Works Director, the current County Engineer who will be vacating that position, effective 1/1/99.

Board Action: Unanimous motion approving PAA 112/98 and 113/98 effective 1/1/99.

Maintenance 117/98 Dept. Asst. 904 Personnel 1/1/99

Maintenance 118/98 Night Cust. .5 fte 901.03 Replacement 1/1/99

Maintenance 119/98 Night Cust. .5fte 901.06 New Position 1/1/99

PAA 117/98--increase hours from 4 to 8 per day per budget approval for 1999 for clerical position within Maintenance. PAA 118/98, night custodian, refill position; and PAA 119/98, new custodial position tied to the new South Whidbey Resource Center, effective 1/1/99.

Board Action: Unanimous motion approving PAA 117/98, PAA 118/98 and PAA 119/98, effective 1/1/99, noting PAA 119/98 is an unbudgeted position, with funds to come from rental participants in the facility will pay.

Pub. Def. 120/98 Vol. Program Asst. .5 FTE #1908 Replacement 12/14/98

[Guardian Ad Litem program]

Board Action: Unanimous motion approving PAA 120/98 effective 12/14/98.

By unanimous motion, the Board approved Consolidated Contract #C07711 between Island County and the Department of Health in the amount of $318,729.

On unanimous motion, the Board approved Contract #HS-07-98 between the County and South Whidbey Youth Center, a mini-grant in the amount of $2,500 used with respect to substance abuse prevention.

A Public Hearing was scheduled, by unanimous motion of the Board, to be held on December 28, 1998 at 2:45 p.m. to consider Resolution #C-169-98, Amendment to Policy #6 of the County-Wide Planning Policies, regarding State Highway and Ferry Facilities level of service, specifically adding item #6 to Policy 6 as follows:

Two hearings were scheduled by unanimous motion of the Board, both for December 28, 1998 at 1:55 p.m., as follows:

Resolution #C-167-98, an emergency appropriation in the amount of $12,442 to be recognized in the 1998 Mental Health Fund Budget from increased millage.

Larry Kwarsick, Public Works Director, presented memorandum dated December 9, 1998, recommending the Board’s appointment of members to the Central/South Whidbey Watershed Management Advisory Committee, a matter discussed with the Board in staff session.

By unanimous motion, the Board appointed the following nine citizens to the Central/South Whidbey Watershed Management Advisory Committee:

Mike Belangie Ron Bodamer Albert Luhn

Laura Fox Ray Gabelein [Jr.] Peter Seybert

William Halstead Katy Longstaff Bill Steiner

The next item Mr. Kwarsick presented for the Board’s action dealt with the acquisition under the Conservation Futures Fund of parcels of land of approximately 100 acres in size, known as the West Beach Lake area, including Swantown Lake, uplands and wetlands [aerial photograph displayed]. The property was recommended for acquisition by the Conservation Futures Advisory Board. The appraised value of the property is $585,000, and negotiated a sale on the property for $376,000, with current owner/seller intent to claim a donation in the difference between appraised value and purchase price. The request by Mr. Kwarsick was that the Board sign the Real Estate Purchase and Sale Agreement, and Earnest Money and Promissory Note in the amount of $5,000. The sale would be closed sometime during the beginning of 1999. The owner has an easement across the County’s property, which the County is asking to be relinquished and the easement across owners’ property be replaced with an easement specifically denoting its purpose as a public access.

Mr. Kwarsick explained that from the standpoint of unique wetlands and habitat, this is one of the most important habitats and wetland complexes on North Whidbey. There are 8 different parcels of land that have upland components to them and over the last 5 or 6 years there has been a variety of different development proposals, which although would not change the wetland situation, would pose an intrusion by the development of up to 8 single family dwellings. This is also an important natural feature in terms of drainage, the County having been involved in maintenance of the drainage system and drainage outfall. There have been concerns in the past about upland development and increased development in the City of Oak Harbor and its impact on this property. With acquisition, the property would be in public ownership and have an important surface water detention value. The property is also used by hunters and bird watchers.

Answering a question from Commissioner Shaughnessy, Mr. Kwarsick indicated it was his understanding there would be no restrictions with regard to hunting. And the Chair noted that this acquisition would preserve the ability for hunters on the North end of the island to at least have a place to hunt ducks on public property.

Commissioner Shaughnessy was not sure about the point of the purchase, not seeing anything changing with the purchase, and had some concern about bird watchers and hunters being able to work together on this piece of property.

Both groups, as the Chairman mentioned, seemed to have worked together on this particular property for years. All of those current uses would continue. There has been a lot of controversy over the years about the maintenance and this would also clean up that whole issue.

Mr. Kwarsick reminded that just northerly, is the waterfront property, Joseph Whidbey State Park, a large parcel waterfront-oriented owned by the State, and a few hundred feet of separation between that park and the wetland complex so there is the ability to link both parcels up by trail system. This was shown as part of the Oak Harbor UGA open space corridor.

Commissioner Shelton saw the purchase as a valued County asset, with preservation of wetlands an important thing for the County to be involved in, noting that certainly the preservation of habitat something the County was committed to. This does things in a way he agrees with: not just regulating all of the value away from the property owners, instead the County does the right thing and purchases the property.

Commissioner Shelton moved approval of the Purchase and Sale Agreement and the Earnest Agreement and Promissory Note in the amount $5,000 for the purchase of the West Beach Property, and that a part of the intent of the purchase is to continue the existing uses that occur on the property.

The motion was seconded by Commissioner Shaughnessy, clarify his second was based on use of the property as is being used today to continue, i.e. duck hunting activity occurring on the property now. Chairman McDowell supported that comment.

Motion, as made and seconded, carried unanimously.

A Public Hearing was held as advertised and scheduled for the purpose of considering Franchise #299, for a sewer collection system and #300 Water distribution system by Lawrence Richmond associated with Seascape PRD on Camano Island, for portions of Wagner Road right of way and Gough Road, located in Sec. 31-31-3E.

Mr. Kwarsick confirmed the application was consistent with the PRD as approved by the County and also consistent with the shoreline development permit issued by the County. By way of a November 30, 1998 memorandum , Lew Legat, Assistant County Engineer, recommended the Board’s approval of the franchise application.

Mr. Richmond and his consultant were in attendance at the time of hearing. No comments were made by anyone in the audience, either for or against said franchise applications #299 or #300.

By unanimous motion, the Board approved Franchise Application for a sewer collection system #299, and Water distribution system #300, by Lawrence Richmond as presented and recommended.

A Public Hearing was held, as scheduled and advertised, but began at 11:45 a.m. instead of 11:30 a.m. due to the length of today’s Board of Health meeting.

Chairman McDowell explained the purpose of the hearing was to consider and take public input on proposed Ordinance #C-156-98, amending Island County Code Chapter 3.06, Lodging Excise Tax, to establish a Lodging Tax Advisory Committee. In order to comply with provisions of 1998 State Legislation, the Ordinance modifies Chapter 3.06 of the Island County Code to establish a Lodging Tax Advisory Committee to make recommendations to the Board regarding how County Lodging tax funds should be spent by Island County, as well as to review and comment on any proposed change in the lodging excise tax rate in Island County. As proposed, the Committee would be made up of an equal number of representatives of businesses subject to the tax and representatives of activities eligible to receive the tax funds. The Chairman of the Board would be a committee member and serve as chairperson, and the previously established County Special Excise Tax Committee would be disestablished and replaced by the new committee.

Bob Whitlow, Colonel Crockett Bed and Breakfast Inn, Coupeville, commented with respect to the proposed make-up of the committee, and the numbers of members. He suggested that the Board now has the opportunity to look at expertise of those in the community who have the knowledge about bringing people into the community, such as those from the accommodation industry and those who are experts at marketing the Island as indicated in the Chandler-Brooks Report. Mr. Whitlow requested the Board consider the recommendations of the Brooks Report and have 6 members from the accommodation group, and 1 member from each of the chambers, including Camano, Clinton, Langley, Freeland, Coupeville and Oak Harbor. The Report recognized the accommodation people and chambers as experts in this field. The request is that the committee be composed as suggested in the Report, a total of 16 members.

Emily Ramsey, Coupeville, stated that she liked the breakdown of the committee membership as proposed in the ordinance. Having been involved in just about every non-profit in Central Whidbey, her opinion was that when a non-profit comes to the County, the non-profit should not have to do so as a "beggar". When involved with building the museum a study was done that found there were 3 major draws for visitors: history, art and environment, and that non-profits provide all 3, and suggested those folks also be represented on the committee, in addition to members from the chambers and users of 2% money. The committee should be regionally represented, evenly from each area of the County. She liked the way the ordinance sets up how the committee is to provide review and that those applying for funds show how they draw tourists to the Island, supported with documentation and information. She questioned if the people who apply for the money have to be non-profit organizations or if businesses could apply.

The Chairman did not have the answer, and agreed he would review the RCW and respond with an answer to Ms. Ramsey.

Joann Lechner, Eagles Nest Inn, Langley, also representing the Whidbey Island Bed & Breakfast Association, with 10 of 12 members located in unincorporated Island County, liked the balance of the committee as provided by law. As Mr. Whitlow indicated, the Association is not in favor of a 9-member committee, rather they support 16 members as suggested in the Chandler-Brooks Report. The Association feels that having all chambers represented and an equal number of members from the accommodation industry that the type of decision making capability will l serve the promotion of tourism for all of Island County, She spoke in favor of 4 other members being included on the committee, which could include members from the arts, the community and an elected official.

Patricia J. Warren, Director of Operations, Coupeville e Arts Center, read a statement on behalf of the Board of Directors:

Ms. Warren advised that when State legislation was amended, she served as President of the Board of the Washington Museum Association, who worked extensively with the arts network to draft that legislation and to be sure that arts, heritage and cultural organizations were considered a part of the process and eligible for funding under such legislation. The idea of the make-up of the committee was that there would be a balance of interests represented, and she encouraged the Board to look at the legislative history. She could not speak to the Chandler-Brooks Report, but did state that the fact the consultant did not involve the cultural community of Whidbey Island she thought was significant and not totally complete. She urged that the Board consider balance in appointing committee members, and echoed Ms. Ramsey’s comments about involving a variety of interests.

Wm. F. "Bill" Thorn, Camano Island, Commissioner-Elect District #3, provided the following comments and suggestions on the proposed ordinance for the Board’s consideration as follows:

Judy Lynn, Artistic Director, Coupeville Arts Center, had a question about the next step once the Board decides the make-up of the committee and whether or not the Board was open to suggestions for appointments.

Chairman McDowell clarified that the Board would appoint the members, and the committee then would meet and function under Paragraph B as described. The Board is willing to listen to anyone who wants to volunteer or recommend someone for appointment. He noted that the Deputy Prosecuting Attorney provided the verbiage in the ordinance so to change any language would require the matter go back to the attorney. He recalled that the Chandler-Brooks Report recommended funds should be used, current 2% and additional 2% if enacted, for a county wide program or plan using those funds for county-wide advertisement. Page 5 item B provides that one of the functions of the committee will be to look at the issue of whether the current 2% should be increased another 2%. He met with the three mayors to discuss the issue, and all agreed to actively support the additional 2% if it is to be used as recommended in the Chandler-Brooks Report; however, all three mayors felt that the first 2% would be used as it has been used historically. He is not suggesting current 2% funding grants be changed for next year. At this point, it was the Chairman’s recommendation to get on with the business of looking at the 2% now being collected and how it is to be spent next year.

Commissioner Shaughnessy observed that from this meeting as well as prior meetings with these groups, that was exactly what was being proposed because there were many who were disgruntled over the way the 2% monies had been spent and were looking for a change in direction.

Mr. Whitlow confirmed that the group requested that the current 2% money collected in the unincorporated area of the County in fact be used to start the advertising program – use the currently collected 2%, not 2% from the cities.

Mrs. Lechner realized the County had grant requests at this time, but in the past those had not provided any real return and she suggested looking to use the money as seed money to its best advantage. She verified they wanted a change in direction.

The Chairman reiterated that the three mayors were unanimous about not being interested in giving up the initial 2% now being collected. They agreed they would collect the additional 2% for use county wide. The Chair personally did not think it would be appropriate for the County to collect the 2% additional without cooperation from the cities. The question of collecting the additional 2% is not before the Board at this time and not a part of this hearing.

Ms. Ramsey thought it seemed as though the Chandler-Brooks Report did not thoroughly cover what really attracts people to the Island. If a decision is made based on that Report, she suggested the Board would need more information, and she would have concern about the make-up of the committee.

Commissioner Shelton moved approval of Ordinance #C-156-98 in the matter of amending Island County ode Chapter 3.06, Lodging Excise Tax, to establish a lodging tax advisory committee. Commissioner Shaughnessy seconded the motion, but wanted to see an amendment to the motion to expand the committee membership.

Under discussion, Commissioner Shelton stated that he saw the need of having the ordinance in place, but was not against considering the expansion of the committee.

The Chairman suggested that if the committee, once in place, recommended a change in direction, that would require public hearings, just as the Board would be required to hold public hearings, and thought that was the appropriate time to hear from a broad base throughout the County.

Commissioner Shaughnessy made the point that the advertisement for today’s hearing indicated consideration of the committee make-up, and it was his thought that the membership could be increased to at least provide for: 6 – 6 – 1.

The Chair pointed out that the new law provides that the Board will review the membership annually and make changes as appropriate.

Commissioner Shelton agreed the motion could be amended by changing the committee membership from 9 to 13, though he did not particularly see the up or down side of doing that. Should that be done, the Chairman asked for a continuance or rescheduling of the hearing in order to re-advertise to note the Board would be considering a change in the number of members from 9 to 13. Commissioners Shelton and Shaughnessy did not believe that change required a continuance or re-advertisement.

Commissioner Shelton moved to amend the motion to change the membership on Page 5 under Section 3.06.060.A from nine to thirteen; 3.06.060.A.1 changed from four to six; and item 3.06.060.A.2 from four to six; and retain in section 3.06.060.A.3 one member who is the Chairperson of the Board of County Commissioners.

Amendment seconded by Commissioner Shaughnessy.

Chairman McDowell suggested the amendment include under 3.06.060.A.3 membership of the Mayor of Oak Harbor.

Commissioner Shaughnessy noted that all of the appointments would be made by the Board. Commissioner Shelton observed that the Chandler-Brooks Report suggested non-voting members, whereas the Ordinance provides the Chairman of the Board would be a voting member. The Amendment carried by majority vote, Chairman McDowell voted in opposition.

Motion, as made, seconded, and amended, carried by unanimous vote.

IN THE MATTER OF AMENDING )

ISLAND COUNTY CODE CHAPTER )

3.06, LODGING EXCISE TAX, TO ) Ordinance No. C-156-98

ESTABLISH A LODGING TAX )

ADVISORY COMMITTEE )

_____________________________________)

WHEREAS, Island County adopted a Lodging Excise Tax to create the Public Facilities and/or Tourism Fund (Fund) in 1982; and

WHEREAS, in 1991 a Special Excise Tax Committee was established by the Board of County Commissioners to make recommendations to the Board for expenditures from the Fund; and

WHEREAS, in 1998 the state legislature in House Bill (HB) 2698 required municipalities with a lodging excise tax to establish a Lodging Tax Advisory Committee made up of an equal number of committee members from businesses that are required to collect the lodging tax and an equal number of committee members from organizations involved in activities that can be funded by the tax and one elected official member who serves as chairperson; and

WHEREAS, it is necessary to amend Ordinance No. C-82-01 adopted in 1982 to conform to the aforesaid 1998 statutory amendments; NOW, THEREFORE,

IT IS HEREBY ORDAINED that Ordinance No. C-82-01, adopted March 22, 1982, and ICC chapter 3.06 are amended as set forth on attached Exhibit "A". Material underlined is added and material lined through is deleted. Ordinance No. C-116-91, adopted July 22, 1991, is hereby repealed.

Reviewed this 23^rd day of November, 1998, and set for public hearing on the 14^th day of December, 1998 at 11:30 a.m. in the Commissioners’ Hearing Room.

BOARD OF COUNTY COMMISSIONERS

Tom Shaughnessy, Member

ATTEST: Margaret Rosenkranz

Clerk of the Board

Ordinance C-156-98 is adopted this 14^th day of December 1998 following public hearing.

Mike Shelton, Member

Tom Shaughnessy, Member

ATTEST: Margaret Rosenkranz

Clerk of the Board

David L. Jamieson, Jr.

Deputy Prosecuting Attorney and

Island County Code Reviser

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

adjourned the meeting at 12:30 p.m., to meet in Regular Session on December 21,

1998, beginning at 9:30 a.m.

Mike Shelton, Member

_______________________________

Margaret Rosenkranz, Clerk of the Board