The Board of Island County Commissioners, including Diking Improvement District No. 4, met in Regular Session on September 12, 2005 at 9:30 a.m. in the Island County Courthouse Annex, Hearing Room, 1 N. E. 6^th Street, Coupeville, Wa. Mike Shelton, Chairman, Wm. L. McDowell, Member, and William J. Byrd, Member, were present. The meeting began with the Pledge of Allegiance. By unanimous motion, the Board approved the minutes from the regular meeting held on August 22, 2005 and special session held on September 9, 2005.

As presented by Dick Toft, Human Resources Director, the Board by unanimous motion, approved the following personnel action authorizations:

Juvenile 071/05 Sec/Adm. Asst. 1403.01 Replacement 9/12/05

Juvenile 072/05 Counselor/Drug Ct. Coord. 1402.07 Increase Hours 9/12/05

Health 073/05 Env. Health Spec. 2407.04 Replacement 11/1/05

Health 075/05 Env. Health Spec. 2403.08 Decrease Hours 9/12/05

Public Works 074/05 Adm. Asst. 2212.00 Replacement 9/12/05

The Labor Agreement by and between Island County and the Island County Deputy Sheriff’s Guild covering the Criminal Division for the period January 1, 2004 through December 31, 2006 was approved by unanimous motion of the Board, as presented by Mr. Toft.

Maggie Paczkowski District Court 15

Tim McDonald Public Health 25

Beth Plush Public Health 15

Linda Telles Public Health 15

Donald McWilliams Public Works 10

Bill Oakes and Mike Morton – Island County Public Works Department for Merit Award in the Transportation Plans Category for the Island County - Whidbey Scenic Isle Way Corridor Management Plan. Only seven projects submitted were selected for top awards in the competition, which was sponsored by the Washington Chapter of the American Planning Association and the Planning Association of Washington.

Eileen King from the Auditor's Office was selected as the Employee of the Month for August. She joined the County in January of 1987 and is responsible for producing the County payroll as well as overseeing the processing of the weekly vouchers.

By way of letter dated August 4, 2005, the Island County Affordable Housing Advisory Board recommended award for Low Income Housing Surcharge Fund application to Habitat for Humanity of Island County for $45,000 to be used toward the purchase of a single-family residential building lot in Freeland, located adjacent to the lot purchased in 2004 with Low-Income Housing surcharge Fund assistance and is the last vacant lot in the Vesel court Planned Residential Development. By unanimous motion, the Board awarded the application as recommended.

The proposed ordinance would amend ICC 3.02C.040, Use of the Rural County Sales or Use Tax for Public Facilities, to be consistent with 2004 State Legislation by clarifying that the tax funds can only be used to finance public facilities that serve economic development purposes by facilitating the creation or retention of businesses and jobs in Island County. Additionally, prior consultation with the Island County Economic Development Council is added along with an annual requirement to report the public facilities projects financed to the State Auditor.

By unanimous motion, the Board scheduled proposed Ordinance #C-102-05 Amendment to ICC 3.02C.040 Use of Rural County Sales Tax or Use Tax, for public hearing on October 3, 2005 at 9:55 a.m.

Amendment A to Grant Contract #E05-071 (RM-DES-05-0097) with Snohomish County Department of Emergency Management for FFY2004 Homeland Security Grant Program, the amendment for the purpose of extending contract completion date to April 30, 2006, was approved by unanimous motion of the Board.

By unanimous motion, the Board approved the following Juvenile & Family Court Services waiver and contracts:

Having received recommendations of approval from the appropriate County departments, the Board by unanimous motion, approved the following liquor license applications:

As brought forward to the Board under cover memorandum dated September 9, 2005, from Don Meehan, Director, WSU-Island County, the Board by unanimous motion approved CZM310 Grant Agreement #G0600066 with Department of Ecology (RM-EXT-05-0102) funding the Marine Resources Committee’s work on projects outlined.

At 10:15 a.m. as advertised, the Chairman opened a Public Hearing on Ordinance #C-92-05/R-36-05 – In the Matter of Renaming a portion of Wilkinson Road to Zimmerman Road, Between connections with Bob Galbreath Road, South Whidbey Island, Sec. 13, Twp 29N., R 3E., W.M.

Bill Oakes, Public Works Director, confirmed recommendation of approval. The proposal was reviewed with Emergency Services who concurred in the recommendation.

Steve Raymond, Wilkinson Road resident signing the petition requesting the road name change, reiterated reasons for making the proposal. Much of the ¾ mile section of Wilkinson Road has been closed to motorized vehicles since damaged by a slide in 1996. Since then, it has become a popular bike and pedestrian trail but few maps have been changed to reflect that and some motorists still try to use the roadway as a short cut into Langley ignoring the posted 25 mph speed limit, presenting a severe safety hazard to cyclists and pedestrians. Residents are concerned about emergency response to this section of Wilkinson Road [case in point: July 5^th when a fire destroyed a barn] when responders did not realize this portion of Wilkinson Road still existed. Zimmerman road is proposed to honor the Zimmerman family who first came to Whidbey Island in 1906. Zimmermans were contemporaries and friends of the Wilkinsons and two other pioneer families and the family still owns property along the road and has placed it in a conservation easement to serve as a wildlife and nature preserve

Sue Ellen White and her husband, John Gertzel, Clinton, also signed the petition for the road name change and support the change for all the reasons stated, and having had a medical emergency wherein the emergency responders had confusion about which Wilkinson Road the call came from. She also agreed with the name change as being appropriate given the history of the area.

Living off Wilkinson Road, Chairman Shelton was aware first hand that the change would eliminate a very confusing area.

The Board at staff session held on September 7^th scheduled a Public Hearing on September 26, 2005

at 6:00 p.m., Commissioners Hearing Room, Coupeville, WA] on the following proposed ordinances (1) Ordinance #C-99-05 Restricting Discharge and Use of Firearms in the Vicinity of Deer Lagoon and Allowing Hunting on Camano Ridge Property; and (2) Ordinance #C-100-05 Restricting Discharge and Use of Firearms in the Vicinity of Deer Lagoon and Allowing Hunting on Kettles Trail and Camano Ridge Properties.

In order to accommodate a large number of citizens than the capacity of the Commissioners Hearing Room allows, the Board by unanimous motion today scheduled a Special Session of the Board to conduct a Public Hearing on Ordinances #C-99-05 and #C-100-05 to be held in the Performing Arts Center, Coupeville High School, located at 2 South Main Street, Coupeville, Wa.

Mr. Oakes submitted the 2004 Special Purpose District Annual Audit Assessment for Diking

Improvement District No. 4 for approval and forwarding to the State Auditor. This method is an alternate audit procedure done for small entities with budgets less than $200,000 a year.

By unanimous motion, the Board authorized the Chairman’s signature on the 2004 Special Purpose district Annual Audit Assessment for Diking Improvement District No. 4.

As presented and recommended by Mr. Oakes, the Board by unanimous motion approved a Quit Claim Deed from Christie J. Connors , Parcel 156-3910; Sec. 11, Twp. 31N., R 2E., as part of the Camano Hill Road Improvements under CRP 02-04, Work Order 176, with compensation in the amount of $9,450.00 ($5,900.00/land, $2,800.00/Administrative Settlement, $750.00/Statutory Allowance).

As presented, the Board by unanimous motion scheduled a Special Session on October 11, 2005 at 2:00 p.m., at the Camano Multi-Purpose Room located at 141 N.E. Camano Blvd., Camano Island, Wa. for purposes of conducting a Public Hearing proposed Ordinance #C-13-05/R-44-05, to regulate the speed limit on Brokaw Road, amending Island County Code Title X, Chapter 10.01.

A Drainage and Maintenance Agreement and Covenants (#PW-0520-207) between Island County and Frank Freeze, Inc. and Holmes Harbor Associates, LP, Parcel 501-4580, Sec. 3, Twp 29N, R 2E. as presented with recommendation of approval from Mr. Oakes, was approved by unanimous motion of the Board.

As presented and recommended for approval by Mr. Oakes, the Board by unanimous motion, approved the following Stormwater Mitigation Agreements and Covenants representing additional requirements for development within the Holmes Harbor Rural Area of More Intense Development:

By unanimous motion, as presented and recommended for approval by Mr. Oakes, the Board approved Grant Agreement #PW-0520-297 between Island County and Washington Department of Fish & Wildlife (WDFW) to renew Lead Entity Grant Agreement #05-2028, an on-going grant agreement for Island County to function as the lead entity for salmon recovery funding, for total amount of $90,000 ($55,000/WDFW; $35,000/Road Fund) [GMA record #8289]

Phil Bakke, Director, Planning & Community Development, summarized from the Island County Planning Department Proposal, Findings, Analysis, Conclusions and Recommendation dated July 29, 2005, recommending conditional approval subject to the property owner’s forest management plan submitted and reviewed with the application. Applicants request that forty acres of their forty acre parcel be enrolled into the Timber Land current use program.

At the time of hearing, no one in the audience spoke either for or against OPS 251/05.

By unanimous motion, the Board approved OPS 251/05 by Pavey Family LLC transferring forty acres from Designated Forest to Timber Land current use classification, for Parcels R22915-194-4660, R22915-242-4200 and R22915-242-4070 as presented.

At 10:35 a.m. as advertised a Public Hearing opened to consider OPS 250/05 by Applicants Pavey Family LLC, proposing to transfer seven acres from Designated Forest to Timber Land current use classification, Parcel R22915-291-4310 located in South Whidbey Island, WA.

Mr. Bakke summarized from the Island County Planning Department Proposal, Findings, Analysis, Conclusions and Recommendation dated July 29, 2005, recommending conditional approval subject to the property owner’s forest management plan submitted and reviewed with the application. Applicants request that that seven acres of their seven acre parcel located southwest of Freeland be enrolled into the Timber Land current use program. Staff recommends approval per conditions noted, subject to the timber management plan prepared and reviewed by the Department.

At the time of hearing, no one in the audience spoke either for or against OPS 250/05.

By unanimous motion, the Board approved OPS 250/05 by Applicants Pavey Family LLC, transferring seven from Designated Forest to Timber Land current use classification, Parcel R22915-291-4310 as recommended.

HEARING HELD: OPS 299/05 by Charles & Janet Benbow and Don & Doris Nolan

At 10:40 a.m. as advertised, a Public Hearing was held on OPS 299/05 by Applicants Charles & Janet Benbow and Don & Doris Nolan, requesting that approximately seven hundred acres of their approximately eight hundred acre holding located south of Greenbank, be shifted from the Designated Forest Tax Program to the Timber Land current use classification. The owners have removed approximately one hundred acres from Designated Forest for development purposes and paid applicable fees and penalties.

Mr. Bakke summarized from the Island County Planning Department Proposal, Findings, Analysis, Conclusions and Recommendation dated August 12, 2005. Applicants submitted a forest management plan that has been reviewed and found adequate for the proposal and staff recommendation is for approval with conditions noted, subject to compliance with the timber management plan. Specific list of parcel numbers is attached to the Open Space Taxation agreement.

At the time of hearing, no one in the audience spoke either for or against OPS 299/05.

By unanimous motion, the Board approved OPS 299/05 by Applicants Charles & Janet Benbow and Don & Doris Nolan, as presented.

Jeff Tate, Assistant Director, Planning & Community Development, presented for approval proposed Resolution #C-104-05/PLG-017-05 Amending the Water System Service Area for the Sunset Water System located on Camano Island County. The first map under Exhibit A to the resolution shows the parcels (Lots 3 and 4) added to the service area (lower portion of the map, labeled "added lots to service area" ). The Association has indicated a willingness to serve water and is capable of serving water, and the Department recommends approval of the resolution.

Carole Croft, Planning & Community Development, recalled for the Board that on August 22, 2005 the Board accepted and approved a Statutory Warranty Deed wherein William L. and Susan M. Goodman granted property to Island County. Following recording of the document, a minor error in the legal description was discovered and needs to be corrected. The Board acknowledged that correction at Staff Session on September 7^th, and Ms. Croft presented the corrected Statutory Warranty Deed for the Board’s approval today.

By unanimous motion the Board approved the correction of the legal description on the Statutory

Warranty Deed from William L. and Susan M. Goodman as presented by Ms. Croft.

Budget Workshop began as scheduled at 1:30 p.m. Budget workshop times are approximate and may be adjusted. Proposed budget and supplemental requests are taken under advisement by the Board; no

final decisions expected as a result of budget workshops. Hand-outs are on file with the Clerk of the Board.

ISLAND COUNTY ASSESSOR (Budget Workbook pages 5-10)

Presentation by: Tom Baenen

Hand-outs: Supplemental Budget Programming Needs for 2006

Revenues. Most of the Assessor’s revenue is derived from copies provided for the public, and $0.25 from forest fire assessment accounts in the County [realize very little, i.e. 2004 actual realized $12,025). Proposal basically the same as last year.

S/W/B: Some adjustments for salaries and wages due to longevity increases or advancements of appraisers from one category to another based on completion of educational requirements.

M&O. Had included $1500 for postage in the total; $1,000 of that has dropped out inasmuch as the Post Office has not officially announced a postage increase the Budget Director did not include dollars for postage increases.

Supplemental Budget for 2006. Reflects organization within the staff for a total consequence in the amount of a $6,600 increase in SWB.

Supplemental Budget Programming Needs. (Not meant to be an all-inclusive list and there are no dollar amounts associated thereto at this point)

• Board slip process

• Board of Equalization appeals/petition response

• New Value

• Electronic Real Estate Excise Tax Affidavits

• Forest Fire Protection

• Mapping and other enhancements for Assessor’s web page

• General programming needs are ongoing with the present tech programs

By the first of the year the State is going to electronic processing of all real estate excise affidavits which will create necessary programming in the Assessor, Auditor and Treasurer offices. The State statute provides some funding by raising the cost of a real estate excise affidavit for purposes of covering the technology.

Follow-up: Budget Director to review specifically what is included in #34141 Assessor’s Fees

Presentation by: Suzanne Sinclair; Anne LaCour

There is not much different from 2005 budget wise, as described in budget narrative. Three main areas of concern addressed in the Auditor’s Supplemental Budget request:

Budget narrative is on page 231. Proposed supplemental budget outlines request for:

2. $70,000 for "Eagle Recorder" an upgrade from CRIS+plus to enable utilizing electronic recording. Cost estimate is $52,816 with annual maintenance of $6,000.

There will be a Montana style primary in 2006, which comes at a higher cost. Island County has over 70% absentee voters so postage costs are different. In 2006 a transfer of $170,784 to Election Reserve will be necessary, as outlined in the Budget Narrative provided on page 252. Costs are based on an estimated four elections during the year. It is estimated that going all vote by mail would save approximately $11,500 per County-wide election.

Presentation by: Marie Taylor

No adjustments made for S/W/B. Increases proposed include: Office & Operating increased by $100; Communications by $300 and Advertising costs by $1,000 based on increases in cost for supplies, postage, and advertising. The Commission has to test a little more often than in the past. Proposed budget $15,471.

TREASURER [Budget Workbook pages 213-223 ]

Presentation by: Linda Riffe

Revenues. General revenues are shown on page 213 the Treasurer and Budget Director worked on to come up with an estimate of revenue. Investment interest is proposed at $750,000, a conservative estimate, believing that will hold if not go up a little, and the Treasurer would not object to some increase in that figure. The Budget Director came up with the sales tax entry on line #31310 and probably is a bit low.

Expenditures begin on page 214, with Budget narrative beginning on page 217. M&O reflects increases in paper costs, legal forms, fuel and communications. Professional services reduced to $13,000 and is for banking services and other professional fees. Increase in postage anticipated in January will be significant. Once on line credit card payment and e-check gets operational should help with some of the communications costs.

Staffing. Request to maintain administrative assistant at 3 days’ per week as a permanent employee to assist deputy treasurers to help process tax adjustments. Processed 1993 board slips between January and the end of August, with 1134 left. Anticipate an approximate additional 400-500 more between now and the end of the year, and the Treasurer believes staff probably will be able to process another 1,000. However, something needs to happen in order for them to keep up with the volume. The only other alternative would be hire a tax adjustment deputy which would be more expensive.

Commissioners stressed the importance of getting the board slips caught up to avoid receiving an audit finding. It is also an important issue to the citizens of the County; if they go to the trouble of going to the Board of Equalization and the Board agrees and makes an adjustment, those citizens have the right to expect on the following tax statement that adjustment will be reflected.

The Treasurer is requesting to out source the printing and mailing of tax statements, a request previously addressed at a recent staff session, for an additional amount of $4,435 plus a one-time set up fee in the amount of $1,200. The $4,435 is off-set by the time staff spends now manually sorting and stuffing multi-parcel tax statements , and printing the tax statements and running them through the machine. All but four counties in the State are out- sourcing tax statements processed, which makes good business sense.

The Commissioners met today at 3:00 p.m. with Elected Officials from Island County, City of Oak Harbor, City of Langley, Town of Coupeville, and Port Districts as Island County Council of Governments. In accordance with the Articles of Incorporation, Section V, By-laws developed by the Council of Governments board, the By-laws, now approved by the governing body of each of the members, are effective and the Island County Council of Governments officially formed and its own entity, with its own regular meeting dates and agendas and minutes.

BOARD OF COUNTY COMMISSIONERS AND

DIKING IMPROVEMENT DISTRICT NO. 4 COMMISSIONERS

ISLAND COUNTY, WASHINGTON

______________________________

Mike Shelton, Chairman

_____________________________

Wm. L. McDowell, Member

William J. Byrd, Member

ATTEST: _______________________

Elaine Marlow, Clerk of the Board