City Council - Regular Meeting

Good evening everybody. I have 6:02 p.m. So we will go ahead and call to order the March 2nd, 2026 city council meeting. All members are present. So we have a quorum. Would you please join me in the pledge of allegiance? I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

All right. Thank you. Uh we will begin this evening with announcements and committee reports. Uh so first a couple of announcements. Uh reminder that this uh Friday is um colurectal cancer awareness day. It's the day when you can dress in blue to help raise awareness for colurectal cancer as we uh adopted a proclamation for last week. So reminder to all staff and the community to dress in blue on Friday. Thank you. Uh the parks and recreation commissioner is having an open house on March 10 uh at 6 pm at the Anacortis Senior Center. March 10 is a Tuesday. Uh notably, this meeting of the commission will be at the senior center, not uh here at city hall. But if you're interested in learning more about parks and recreation projects or asking questions or providing feedback, this is a great opportunity. So, March 10 at uh 6 p.m. at the senior center. Um, again, another plug for our project pages. If something is happening along your street or in your neighborhood and you want information about that, you are likely to find it at anacordiswa.gov/projects. Projects is available from the top uh menu on any page on our website. If you don't see your project there, uh let us know and we will get a project page made up about it. We want people to have accurate and complete information about these projects. So, we're developing this template and trying to push out the right information. Looking for feedback, though. So, uh check it out and don't be a stranger. All right, that brings us to committee reports. Uh council finance committee, I understand, met in this past week.

Thank you. Uh the thank you the finance committee uh which is Christine Clea McGrath, Carolyn Molton, and myself met with finance director Steve Hogland and finance manager Rhonda Pek. Uh on the 26th of February, Mr. Hogland previewed the budget amendment and capital facilities plan amendment that we'll be talking about later on tonight's agenda. And we discussed various courses of action council could take um in response to those proposed amendments. Uh Mr. Hogland shared January revenue figures for retail sales tax and utility tax. Both of which were very encouraging. Um and also for real estate excise tax, which was not as encouraging, but we'll talk about that later tonight too. I think um Rhonda Pek shared uh reported on the progress to date and the near-term schedule for implementing the new Tyler EP software. Um, apparently staff training and data conversion are underway for the initial phase. So that's good. Um, and apparently the utility billing and payroll modules are scheduled to be worked on next year. Uh, Miss Pek also introduced some enhanced reporting tools she has developed to provide departments with more intuitive means of monitoring their expenditures against budget, which is of course of great interest to all of us right now. Um we will and the committee did um talk about how council members if you have any questions about the consent agenda list of vouchers that were presented to approve each week. Um you're welcome to contact Mr. Hogland or the department head who um approved that expenditure because I know we're paying all close attention to that now. and the committee decided to maintain the existing meeting

schedule of every other Thursday and we'll keep you posted. Thank you. Uh public works committee also met I think just before this meeting. Who has that report? Mayor Walters. Mr. Vantini.

Yes. So, uh we met uh right before this meeting. It was myself, Council Member McDougall, Council Member Cleland McGrath. um the public works director as well as many staff from the water wastewater treatment plant. Um we received a presentation about um the alternative analysis that's being done on what we want to do about our water treatment plant. One thing that we discovered in going through that is a lot has changed since the last time that this has been talked about in 2019 20 yeah a while ago before I was on council. Um, and one of the things that's going to happen is we are going to have a presentation here at council that is going to kind of do a dial reset for us showing us what has changed um, and a little bit more information and then they are going to send out a form to all seven members of us on council. This is an exercise that the staff of the wastewater treatment plant has already um completed that will get all of our uh wants, needs, desires, thoughts on all of the various uh goals um that we're looking at. And then they're going to pull us all together for what we think will be our very first work session as a council to discuss in a more informal way um how we as a council are looking at things and wanting to move forward. And that should happen within the next month. Did I miss anything? Because there was a lot that went down. Um, I don't know. Okay.

Okay. Thank you. Uh, are there any other council uh announcements or committee reports? Mayor Walters. Mr. Young.

Uh, no. I just wanted to sort of um tell the story of um myself um Mr. Courier, Councilman of Mr. Fentini attended the EDAS economic forum that was um very enlightening given the uncertainty of where we all are. But it was a wonderful presentation. I felt that it um really gave us a lens to look at what's happening, what we're perceiving to happen, and then the actuality of what's really happening. Uh the worries, some of which um was described to be just a little bit more worry than the actual. And so that was pretty good. And also, you know, just as a um toe and tug to the economic development committee, um Councilman Courier um introduced me to some very important people that you will be hearing more about. And so I appreciate that. And so um but I just wanted you to know it was a wonderful event, well attended by all and um we I think represented the city in a way in our interest. So, thank you.

Thank you, Mr. Young. Anybody else? Uh, okay. Just two other notes. Uh, Monday, April 6th, I will provide the state of the city address here in council chambers followed by a normal business meeting. Uh, that state of the city address is also available to any uh service club, neighborhood association, any other entity that would like to hear that address. we can make arrangements um through uh the mayor's office to make that address uh to your own organization. Uh Monday, April 13th, uh we will have a council uh work session at which all departments will provide updates on their work so far this past quarter and their plans for the year. Assuming council likes that format, um we'll do that every quarter. Uh, but the normal state of the city address will not include a simple rundown of what each department is working on. So, if you're looking for that, skip the state of the city and come to the April 13th council meeting. All right. Uh, and that will be the entirety of the April 13th council meeting. There won't be time for other agenda items besides the consent agenda. Uh, all right. That brings us to public comment. If anyone would like to make a public comment, go ahead and raise your hand. I don't see ah Linda Martin in the audience. I do see Linda Martin in the audience. So I'm going to ask her to come to the podium. Otherwise I don't see anybody online and nobody else in the audience.

Linda Martin uh ward three in Anacortis. Thank you.

Um I have a question a liability question and this is truly a question. Um it's not a gotcha. My understanding is that the city of Anacortis owns the sidewalks in the city of Anacortis. And if there is um some sidewalks that are in disrepair um in this case not disrepair like one part is higher and one lower and it's a trip hazard but I think it's called spalling where this u cement is um flaking away. if if um an HOA if the city understandably doesn't have the priority to uh fix the sidewalks and the HOA is willing to spend their thousands of dollars fixing it, but that's not necessarily under the city's purview because the HOA is doing it. If somebody got hurt either doing the repair or after the repair, who would be liable? Would it be the city? Would it be the HOA? It belongs to the city? I don't know. So, that's I know you probably can't just answer right now, but it's an important question for things we're dealing with right now. So, thank you.

Uh, thank you for that question. And we do get that question quite a bit, although maybe not quite in that permutation. Uh we'll follow up with you and also put uh make sure that we have a page on our website about that. All right, seeing no one else and no one online, uh we will move on to the consent agenda. Council, Mayor Walters, Mr. Fantini. Uh, my computer is in the middle of restarting itself, but um I wanted to pull off uh I think it is the community action um item F item. Yeah, sorry. Yeah. Okay. Thank you. All right. Uh with item F removed, is there a motion on the remainder of the consent agenda?

Mayor Walters. Uh I move approval of the remainder of the consent agenda. Second. There is a motion and a second to approve the consent agenda with the exception of item F. All those in favor say I. I. All those opposed say no. The eyes have it. The consent agenda with the exception of item F is approved. Uh I would now ask for comments or a motion on item F. Uh Mr. Walters, I just have a couple of questions before um voting to approve this. Um so with and I apologize in advance. Mr. Coleman asked if he needed to be here tonight and I told him nobody's going to pull that item off the agenda. So, we will do our best.

Okay. And if we need to move it to next week, we absolutely at your discretion can. Um I I just had a question about the this funding. So, as I understood it, we were temporarily funding this, but we've been temporarily funding it for four years now. Is it is that wrong? Is that uh I don't think that there was any ever indication it was temporary. Okay. Except for the fact that it's only ever a one-year agreement. It's only ever a one-year agreement. Okay. Thank you, Mayor Walter. Mr. Young,

if if I could elaborate a little bit, I'm sure you already know this. um part part of the role of of community action was trying to get them to be here in Anacortis too because sometimes you know in our at least in my view and I look at uh nonprofit service organizations um it was hard it was hard for people of Anacortis to sort of understand the extent that they go to and how that acts not only in tandem with the family center but in a different line. And so we have been trying for years to get him here, get them here and to open that office. And so part of that was they simply did not have the um resources and the capability. So I'm not sure if it's four years, but I think it's at least two. I'm not sure if you've got any input, Carolyn, but yes. Thank you,

Mayor Walters. Miss Molton.

Yes. Thank you. I have lost track of the number of years. I I would say it's more like four, but again, I'm still guessing. But one of the things that I like about this contract is that it requires community action staff to come before council and detail the unduplicated services that they are fulfilling. For example, they've done a lot for seniors specifically since they've been here. And a lot of people in the past have had to go to Mount Vernon to access this. So having people here and having them accessible, the community action staff and the office has been really beneficial to a lot of people. Also, um their weatherization program that they do for homes that could be more snugly insulated, for example, to retain heat and also their utility assistance program that's funded through um well funded it's funded through grants and stuff and and they've been able to reach a a great amount of people that way. So, I think to your question is that we're probably due for one of those updates soon.

Thank you, Mayor Balters. over here. Miss Swatnham. Miss Swatnam, I'm just trying to step in for Mr. Coleman. Uh, I just wanted to to answer your question, Council Member Fantini. It this was part of a pilot program that was started in 2023. So, all right. Council, any uh motions? Mayor Walters, Mr. Fantini, my computer's restarting, but I do move to approve that item. Second.

Motion a second to approve item 5F, which is the contract award for community action. Any further discussion? Hearing no further discussion, we'll proceed to the vote. All right. All those in favor say I. I. All those opposed say no. The eyes have it and the contract is awarded. Thank you, councel. Our next item of business, other business, is an interlocal agreement with the Port of Anacortis for the Fourth of July fireworks display. Mr. Lunsford, our parks director, will introduce this item.

Thank you, Mayor Walters, council members, audience members. Uh, the Port of Anacortis has generously stepped forward to offer to collaborate with us on the funding of the 2026 Fourth of July fireworks. In exchange, we would share logos for the event and they would donate not to exceed $20,000 for the event. It is their 100-y year anniversary and the nation's 250th year anniversary. So, we would work together on this and we would advertise as this not quite this fancy of display um but to recognize their donation throughout the events and then they would help us in the funding of that. And uh you may recall we have a contract with Western Display Fireworks for $47,000. ELTAC has generously stepped forward with 15,000. The parks foundation raises about $12,000 a year and they have some reserves to put forward. and then with the port of Anacortis contribution we would get to our destination. So if there are any questions I'm happy to do my best to answer them and we are very fortunate to have this offered uh donation this year. We don't uh always uh well first of all we don't always have a fireworks display this that is this expensive although tariffs have affected the price but um if others wish to donate for future years the parks foundation is the entity to receive those donations.

Correct. Thank you mayor. Yes the parks foundation uh generously accepts those for us and then passes them straight through to the city. They hold those in reserve if we need them in a lean year and can use those if those come up. the port has stepped forward this year to help us in a tough financial time. Council, if there's no questions, uh, watches, Mr. Young, um, I move that city council authorize the mayor to execute in local cooperative agreement 26-109- APD-1 between the city of Anacortis and the port of Anacortis.

Seconded with thanks. That's not really a thing, but um we'll accept that as a second. Seconded with no thanks. Uh all right, we have a motion and a second to approve the interlocal agreement. Any discussion? No discussion. I'll take the vote. All those in favor of approving the interlocal agreement say I. I.

All those opposed say no. The eyes have it. The interlocal agreement is approved. Thank you, Mr. Lensford. Our next interlocal agreement is also with the port this time for morage of our police vessel and Chief Floyd is going to present this item. Can only assume he will also have animated GIFs in his presentation. I'm tired sorry start sorry start sorry start sorry start sorry start sorry start sorry start sorry start sorry start sorry start to disappoint I do not have any animated gifts for you tonight. Uh what I do have is uh the agreement between the city and the port uh for morage of our police boat. Uh this interlocal agreement is structured very similar to the fire department and in exchange for our morage there. Uh the ports benefiting from some increased public safety presence as well as uh some consulting with their security team on how to more safely interact with individuals that are on port property. Uh especially when it comes to contacting individuals that are maybe in vehicles. Uh they don't have the same level of training that many of our officers do. And so how to safely conduct those contacts while maintaining uh some personal safety is of uh importance to the port. Uh there was a couple of questions I received earlier in reference to um the any associated electricity and that is separate from the mortgage itself. The electricity is uh their basic level charge which is about $15 a month and everything else is fairly straightforward.

We uh anticipate being able to put our vessel in that slip uh upon approval of this interlocal agreement. Uh the port is just in the process of removing a derelct vessel that they had auctioned off and that should be gone within the next week or so. Uh aside from that, I'm available for any questions you may have. Council, any questions, discussions, or motions? Mr. Mc Walters. I suppose if no questions, uh, I'll move that city council authorize the mayor to execute the interlocal agreement as presented. Second.

There's a motion and second to approve the interlocal agreement with the port for morage of the police vessel. Any discussion? The port is making these too easy for us. Uh, in the case of no discussion, I'll go ahead and take the vote. All those in favor signify by saying I.

All those opposed say no. The eyes have it and the interlocal agreement is approved. Thank you, Chief Floyd. Thank you. The next four items have to do with the budget, the capital facilities plan, and then some projects that require or would benefit from some budget amendments and capital facilities plan amendments. We wanted to bring all of these to you together at once so you could look at them holistically and make some uh decisions about the budget holistically rather than reviewing them individually in a vacuum. So, Finance Director Steve Hogland is, I think, ready to go with some uh presentation on the first item, which is the first quarter budget amendment.

Thank you, Mayor, members of the council, members of the audience. I trust these items will go as smoothly as the first several items on the agenda. The um I wanted to start out with amendment, budget amendment ordinance number 5023. So, this is a typical budget amendment ordinance. Um, and we'll look at the details of each of these um, and several of them you'll see work in conjunction with the CFP amendment. So, taking a step back, this is I know many of the council members are familiar with this. We are required to adopt an amendment to the CFB in conjunction with an amendment to the operating budget. And um as timing would have it um there's also a two week a required twoe period for um written comments and notice of a public hearing. So that um comment period is taking place this week and next week. So this is a first read of both of these items. I'll come back for final action in two weeks at which time we'll have the public hearing on the CFP amendment. Then we'll have the CFP amendment ordinance and the budget amendment ordinance. Hopefully that that all makes sense. But I wanted to get this first read in front of council because the two contracts that are on the agenda tonight are related to these amendments and those uh have some timing requirements associated with them. We'd like to get those contracts going. So um so that's that's the the process for these next next couple of items. So, ordinance 5023 amending the 2026 budget. The first item is just kind of some housekeeping. This is um fund 501. This is the ER&R fund, our equipment rental fund. So, we have a different insurance provider this year, last year and this year for our equipment. It has a higher

deductible um but also has lower premium. So what we're doing here is asking for an additional repairs bars number to be included at the same level as at that 25,000 is the same level as the deductible that we have. Um so we are spending a little bit more money inhouse and doing these repairs that are below the deductible amount and the shop would just like to track those separately from the other typical repairs that they do. these next set of items. Q Avenue pedestrian improvements, pedestrian crossing at Tommy Thompson Trail and 23rd and D, pedestrian crossing at 32nd at Stovvic. Um those three projects, but four different crossings are um the items that need to be added through the CFP amendment as well. They currently we have them on the 25 CFP. They're not on the 26 CFP. would like to include those so that they can start that that work here in 2026. And then the last item is fire station one remodel. Same thing we had that in 25. They started some preliminary work. It's not in the 2026 CFP. We'd like to add it. And these all need to be added. not the deductible line for ERR, but the rest of them need to be added to the CFP because they're either using some amount of REIT or impact fees, either of which requires inclusion on the CFP. Um, this is looking at a little bit of detail. These are the items we I'm sorry, these are the items we just went through. We have more detail on the um ordinance 5024. This is the CFP amendment. Here's what the ordinance looks like. It's just got some several bulleted items of the amount of the projects that

were added uh that we are requesting be be added to the CFP. So the details of those um we have these again these three three projects which are four different pedestrian crossings and then the fire station remodel. So the Q Avenue pedestrian crossing 2026 the total project uh this has been bid. This is one of the projects that is on the agenda tonight for your consideration. 2026 the project total is 266 267,17. Of that we have a $217,000 grant and requesting $50,000 in REIT for um for the city match portion. Pedestrian crossing improvements. This is the crossing at the Tommy Thompson Trail and T Avenue. And then another crossing at 23rd and D Avenue. This is at $162,642. This is um the full responsibility of the city. There's no grant funding associated with this. So this is a full ask of REIT. The other crossing project estimated at 190,000 164,350 at grant funded and 25,650 in REIT for the city match. And then fire station one remodel we're at 312,000. 245,000 of that would be impact fees and 67,000 of that would be uh refunded. So, I wanted to give you a little more information on the the REIT situation before opening up to questions

there's a lot of information here and I hope I hope that's hope you can read that. So, I'll go through it and then uh we'll we'll go through the details. what this is showing. Um, starting over here at the top left corner, I wanted to give you an idea of how we ended up with the REIT projection for 2026, the REIT revenue projection that we have for 26. And if you look at the first seven months of the year, this is January through July. You see six green arrows. That indicates that six of those seven months, January through July, revenue in the month in 2025 compared to the same month in 2024 increased. And that's the time frame that we start looking at revenue projections for the budget. And when we looked at those seven months and we we use our historical metrics, that drove a $ 1.4 million REIT estimate. And then the rest of the year, you can see starting in August, um, those revenues actually decreased every month after that and continue that same trend in January of 26 is down compared to January of 25. But that's the $ 1.4 million revenue projection. Hopping over to the right upper right corner here. This balance right here, this is the 2025 ending REIT balance. So at the end of the year after we did our operating transfers for the projects we worked in 2025, we had 3.3 million left in REIT cash. So that's that becomes our starting balance in 2026. and this 1.4 million of estimated revenue that we just talked about and then 2026 estimated REIT expense. So this tan

colored bar here aligns with the tan colored bar down here. I recognize that there's a difference. I'll explain that in a second. But these balances come out of the 2026 through 2031 CFP. So this is what we have identified in the capital facilities plan for those years and the amount of re requirement for each of those years. And the reason 2026 is slightly different. This 2.5 million assumes that the uh CFP amendment that we're talking about tonight is included. that additional 238,000 in REIT would be added to the 2.3 that was initially identified in the CFP. Then uh just running out the revenues and proje revenues and expenditure projections through the end of the CFP time frame. Um you can see quite quickly we uh start getting over our skis and we would project to end the year. Now this is assuming REIT comes in as projected and expenses are fully expended. We'd end the year 2026 with 2.1 million. Uh we would end the year 2027 uh 546 28 -2.7. And you can just see how that progression works out through the end of the planning horizon. These the bottom right corner here identifies the projects that we have in the CFP, the adopted CFP and the adopted budget. We have $50,000 in parks. Facilities has 798,000. Public works roads has 1.2. ADA ramps 100,000. Sidewalks 200,000. And the additional details of this information is um over here on the bottom left

corner if you want to read through through that material. May Walters, Mr. Young, um Mr. Hogland, I really appreciate how you go into the details about this, but would you remind us of all and the public of course of all of the things that goes into REIT, meaning to come up with the amount of money we have in REIT? Would you remind us of what those things are?

Um, sure. Those uh that cash balance of of REIT. Um, so one thing I would point out here, so here's just kind of the simple the simple math for the real estate excise tax. Uh, I would point out we have REIT 1, R1 and R2 identified, REIT 1 and REIT 2. There used to be up until January 1, 2026, there were limitations on what you could use. There are still limitations what you can use REIT for, but there are no longer differences between what you can use REIT 1 and REIT 2 for. So anything that was um eligible for REIT one is now available for REIT 2. REIT 2 used to be more restricted than than REIT one. So you can so that uh those funding streams can be used interchangeably now. But the uh real estate excise tax is generated from the sale of existing homes. It's two quarter percents REIT one and REIT two. uh two quarter percents that um are generated through those real estate transactions. They flow through the county and then back to the city and they're available to use for public works uh projects. Kind of when you think of a public works project like building a park, a street, those types of things. That's that's generally what that that money is available for.

Got it. Got it. And because because of the way um sales have been down, meaning housing, and where we are in the market, we're not we're getting less money because of the slowness of the sales. Correct.

That's correct. So, I will um yeah, the the benefits of being on the finance committee. So, we actually went through this uh last week. Um we do track how many um through our utility billing system we can we can tell when a house changes hands. So we do track the number of uh home sales that way in the city on a monthly basis. And then we can uh we can analyze those numbers as well as the amount of um real estate revenue that or revenue that we're actually getting. And the and in both cases they're dropping. the revenue number is dropping, but the number of home sales is dropping way more significantly. So, it indicates that the the home sales are are still maybe climbing a little bit or elevated, but the number of home sales definitely dropped.

Thank you, Mayor Walters. Miss Molton.

Um, thank you, Mr. Hogland. This is very helpful. I have a question about the change in the funding for the pedestrian crossing at 32nd Street. Um when we did and in the initial packet before it was updated, it the grant funding of 164,000 plus wasn't in there. So it was initially proposed that all that money was going to come from re. So I'm wondering I'd love to know. That's a great question and um I need to apologize for that. That was just miscommunication between finance and public works. So um I just was not aware that that project had been funded with um with grant funding. So that was the so there has been a a reissuance of the packet since then and and that was why because of that significant change. So the the amount of re um yeah is dramatically decreased from that initial publication.

Thank you. Uh going back to where this you know the ending balance for 2025 for REIT versus the beginning balance for 2026. I just want to clarify that for example the projects that we are that are on the agenda tonight were originally budgeted for 2025 but because that that they were not completed that REIT money that had been reserved in 2025 was put back in that beginning balance of 2026. Correct?

Yeah, that's that's correct. So that money that was initially encumbered in 25 for that project was not spent. So continue to reside cash

reserves. That's part of the reason why we need to come back in 2026 now that the projects are going to happen in this fiscal year um and and make those acknowledgements and modifications. I just think it's important. It gets complicated and we spend a lot of time talking about it at the finance committee. So I think it's nice to clarify it for all of council and the public. Yeah, it these um projects there were there were a number of moving parts um within public works and finance um during the budget season last year and these just frankly these projects should have been included in the 2026 CFP. um they've done some work on all of these projects and um three of them, the um two crossing projects and the fire station project have actually all been bid. And so that's um so it's it's desirable by from staff to at least do those three projects. Um

and and I wasn't trying to get into whether or not the project should be done. I just think it's important to understand how how complicated it is to have that ending balance in 2025 and the beginning balance in 2026 and keeping all of the projects kind of on track and documented in their right places because of when we switch years things get complicated. So I just think it's important that we as our directors of various departments and that you as a finance director like there's a lot of moving parts and we have to kind of over overly complicate things to make sure everything is in its right spot. So um we have the money the money was reserved it's not reserved now we're going to rereserve it.

I mean yeah effectively that's that's the case. Yes. Mayor Walters. Mr. Vantini. Um yes. Thank you very much, Mr. Hogland. Um, this is the first time I've seen this spreadsheet, and maybe I haven't noticed it before, but I think I would have with these big red scary numbers, uh, for lack of a a better term. Um, I guess my question is, you have REIT expense on here, and just so that I'm clear, that is going off of what we're saying we're going to spend REIT on that we're projecting in the capital facilities plan currently, right? That's correct.

So, we could and obviously looking at these numbers, we're I'm assuming we're going to have to adjust some things as we move forward in years. Is that But we have Yeah. No, absolutely. And and council may remember some of those challenging budget sessions we had last fall um working through some of some of those same issues. But yeah, Abs, absolutely. I just want to make sure for anybody that's just tuning in and seeing these red numbers for the first time that they know that these aren't guaranteed to happen. No, those I promise you those will not happen. We we can't Thank you. going into into the red at that level. We will um adjust as we as we go down that

that budget schedule. Mayor Walters, Miss Molton,

and and to that point also, thank you. Um that's in the past my recollection is that we would see budget amendments and in general council would just say sure. Um but we weren't in the situation that we are now obviously so we're everyone's taking closer look and and we're getting this clarity of information and how our decisions now affect what will happen later. So even if something was budgeted in 2025, it's not just like oh well we'll just finish it in 2026. So I really appreciate this level of detail for all of us. It's really important for us in the community to know as we make these decisions. So, thank you

on that. Um, just a moment if you might. Uh, so that has been the practice in the past. You know, there's been some consideration of projects like this as needing rollover budget amendments. And uh I think we've made clear uh the finance director and I that there are no rollover budget amendments. They're just budget amendments. Um, and there's a good argument to be made for projects that didn't get done in the prior year but were budgeted for to move forward into the next year. But we want to make sure that council is fully aware of that because REIT is not an unlimited resource and in fact the the finitness of its resource is pretty apparent just when you look one year out. Um, now that's all based on projected expenses and uh the projects that are in the CFP. And we're going to be um acquiring new CFP software shortly, which will provide an opportunity for us to re-evaluate all those projects early on, spend most of the year doing that. Um but on the flip side, if we start to see more REIT revenue, we can also adjust, which is why the projection even shows red. It's because there is a chance that we may see better REIT revenues in the future, in which case we would still uh we would still incur those REIT expenses, just we wouldn't end with a negative balance. Um, but still uh 2027 is going to be here pretty quick. So, we're going to need to adjust really soon what we expect to get done in 27. Um, and then before we leave this slide, uh, I do want to talk about, uh, South Commercial Avenue because, uh, we've got 1.26 million, uh, on the CFP list for South Commercial and the project is more expensive than that. So, I guess we don't have enough money for South Commercial.

uh just looking at these spreadsheets at this point, even with the state grant.

Uh yeah, it's a it's a good point. When you when you look out to the projected end of 2026 at a you know, even if that full 1.4 million comes in and we end the year with $2 million at a $1.2 $2 million price tag. You could envision using the majority of that one the majority of that ending balance of 2.1 uh pretty quickly to support that project. So once we find out uh for sure and for certain if we get the state grant, we'll circle back, look at all the funding sources available, decide whether it's possible to complete in 26 or if it needs to be 27, check with the funding uh constraints and uh get back in front of you to determine what you would like to do with that project. Mr. Young, I interrupted you.

No, thank you. You know, just really um wanted to comment about the um you know, red numbers that we're seeing right here. You know, for me as a council person, it really speaks to where we are, not just us as a city, but what we must do in order to sort of change things in the direction we want to to increase those revenues as it is important, you know, to um in my conversations with the mayor and staff, it's really gives room for hope because I think some of the things that we're working on will truly be beneficial to us as a city. Uh the re-evaluations of things that we may have thought we could do but we may not be able to do. So, it allows us a chance to rep prioritize and um and so even though those numbers look a little daunting to me, I am confident that given the team that we're having and all of you that are out there as we begin to look at where we must go with this that we'll be able to um have some positive change and you know, so I I really wanted to say that because again Uh I am honestly encouraged um by our mayor and this council that we have and the staff that we have. Uh innovation innovative ideas are truly being brought to the table. So I'm looking forward to that. But I I thought it important to mention that this is truly where we are. We're no different than any other city any place else. But the thing that we do have, I think that some cities don't have is we have all of you and we have all of this. And I think it's a positive thing. So, I'm looking forward to those ideas

coming to the table and working together as we push to turn this piece around and allowing us to do more things to make Anacortis truly even more of a home than it's already been. Thank you. All right. Um, Mayor Walters, Miss Question.

So, I'm um, forgive me a little bit conservative because I worked under Mr. Hogan for too long perhaps, although there's probably no such thing because we don't want to send staff off down the road of preparing projects and bidding projects that we may not in fact be able to fund with actual revenues this year. Would it possibly make more sense to pass this amendment, both the budget and the CFP amendment, to take out a couple hundred,000 of projects, so that we're not committing to spending money that we don't know we have only because we don't want to send staff off down the path of bidding jobs that we're then committed to let. And because we have to have a public hearing on this in a couple weeks, would we need to make those when would we need to make those decisions if we wanted to alter that amendment?

Uh, that's that's a good question. So, if we if we adjust it or if we change the CFP amendment before the public hearing, perhaps we can talk about it offline and decide, but yeah, I think It it my thinking at this point is um we would we would leave the the amendments the way they are and then at that time of the public hearing once the public has weighed in if council wanted to make adjustments at that point we could make those those revisions. Thank you.

Thank you. And you can review the descriptions of each of these projects in the capital facilities plan um to make some some choices about uh what you might want to rep prioritize. Oh, Mr. Mayor, while I'm thinking of it, um there is if the public is interested in making comments, they can um go to the capital facilities plan link under the finance page of the city website and um their link set up there for both myself and Mr. Coleman. The public can submit comments about this CF proposed CFP amendment.

Thank you. We also have an asterisk on the agenda tonight for these uh first two of the four items. So, at this time, I would ask any members of the public who would like to comment on the budget amendment or the capital facilities plan amendment to come forward. And I don't see anyone on Zoom. And no one has jumped up here in the audience. So, we'll go on, I guess, to the contracts. You covered both of those sufficiently. The capital facilities plan amendment, too. Yeah, to my liking. Thank you, Mayor Walters. Mr. Pantini,

I just wanted to clarify. I think because I liked what Miss Hunt said about possibly trueing up or or taking a stab. So, next time this comes before us for that public hearing would be an appropriate time to make suggestions for projects we might want to pull back. Is that Yeah, I think that that's uh what Mr. Hogland indicated. He would probably then need to make changes and bring it back at a further amendment or a further meeting on consent. Okay. But yes, thank you. Mayor Walters, Miss Molton,

also in that vein. So when we look at other projects in addition to these for 2026, when should we start looking at those before we get further down the road? Is that like a work session or is that well to what to what end?

Well, so that we have a look we really go into so we know what the if there are things that we want to eliminate or adapt from what's coming not these but everything but other things. Well, um, you have already approved a set of projects for 2026. The only reason we're having this discussion is because there are projects that you did not approve that staff want to move forward because they worked on them in 25. But if you want to go further and remove other projects, I guess I would suggest that uh the meeting two weeks from now where we're going to be opening up the capital facilities plan would be the time to do that because you don't have the option of amending the capital facilities plan whenever you want. You can only do it consistent with a or concominant with a budget amendment.

Okay. Thanks. That's very helpful. Yeah. Mayor Walters, Miss Hunt, you did say though that we would be revisiting the South Commercial project in any case to look at the funding for that. That's right. Because we're we do not, at least what I'm seeing on the page here, have a complete funding solution for it. So that would be the first seems to me the first big thing we need to look at. Yeah, mayor Walters, go for it, Chris. Miss McGrath.

Uh, so yes, I think that's good to clarify the fact that uh we had already we've already approved the projects for 2026 when um the capital facility plan projects. The concern is when we're talking about the remainder the the amount of REIT we have remaining for projects throughout the year. Um, I think that there could be an opportunity for um our public works director and maybe our public works committee to have a meeting prior to our next full council meeting because of the fact that we had when the the the um capital facilities plan was completed last December, we had a different mayor and a different public works director. And now, um, I would like to make sure that our our current director is able to weigh in and prepare kind of what the priorities are moving forward with the next year to three to five years and and um have that opportunity to articulate what makes sense for a public works department and the rest and factoring in council too. So hopefully that can happen. I don't know if we have to have an extra meeting, public works committee meeting, but I would pro I mean I just I think it's important for us to have a discussion offline and then be able to make sure that it can be fully presented for us to discuss at a council meeting.

Uh I think we can make that to happen. However, I would suggest now is probably not the time to revisit the full six-year plan. Uh because we will be hitting that toward the end of the year. But projects that you see that you would in 2026 that you would like to delay um that now's the time to do that because otherwise we will progress on them. Um and public works can provide you that insight. But the outline years you really don't need to tackle right now. You can tackle them uh in the the complete budget process and the complete CFP project pro process later in the year. Mayor Walters.

Mr. McDougall. Quick question on the the grant funding for these because I went back really quickly looked at the 2024 capital facilities plan and while uh at least one of the projects is like REIT in 2024 still REIT today but the 32nd and Stovvic was projected to be all REIT and now we're looking at 50K of REIT and 164K in grant. So, you know, these numbers can shift over time as grants become available. Do like the grant funding in aggregate for these projects is about 420,000. Are those grants relatively new like in the last 12 months we've been awarded those funds?

Yeah, I know the one um the 32nd at Storvik crossing that one is relatively Yeah. was relatively recently awarded. So, Okay. Yeah. not not available when we were doing the revenue projections at the time of the last CFP. Yeah. Yeah. So, these long-term projections, we obviously have the mechanism of, you know, pushing stuff out, booting stuff off, um but also alternate funding. Economic conditions can change. It's definitely scary numbers. We we have to, you know, absolutely manage it. Um but there's also uncertainty that can potentially be at least make these numbers a bit better. It sounds like Yeah, Mayor Walters,

Miss Hunt, that's a very appropriate time to thank staff for getting that grant to getting all the grants that they do get. Thank you for making that happen. And staff are also looking at possibilities for uh grant funds for South Commercial. Uh plus we have the expected legisl legislative award. Um, so there are a lot of moving parts to all of these, but um, we hope to get you some better information going forward. So now, council, are you ready to look at the contracts? Yes. Okay. Uh, Logan Lee, our public works director, will present uh, the next two contract awards.

Good evening, council, mayor, council, and uh, members of the public. Tonight I'm bringing forward two contracts, but I'll just starting with the uh 2026 pedestrian crossing improvements. And uh this contract is for $162,642 with ENE Contracting. And uh this this project is two crossings. So uh the first one is located at uh Tommy Thompson and T Avenue and the second one is located at 23rd and D Avenue. And so on the on the right of the image in front of you is the Tommy Thompson and T Avenue improvement project. Uh it includes a refuge island and two new ADA ramps on either side uh with some rapid flashing beacons. The typical uh inter crossing intersection improvements. So new paint um some new indication uh to there is a crossing ahead. So, the second crossing at 23rd and D Avenue is a is a more of a straightforward crossing with just ADA ramps, um, new paint, and then because it of the location, the topography of the area. It's uh on a hillside, so they're adding these new ADA ADA ramps would uh cause some drainage issues. So, we had to also install a couple new catch basins as well as a new storm main. Um on on the left I just kind of listed out just what you're getting for your money there. We're doing rapid flash and beacons at both uh ADA compliant ramps, all the new markings. Um this is the this has no grant funding, so it' all be out of the general fund. And uh a fun fact about the T a or this particular D Avenue in 23rd, I think it was about a year ago, we had a petition signed by I think it was like a hundred elementary school students asking for a crossing at this location. So, um

excited to hopefully get it built. Um happy with any questions on that one. Um we want to talk about this contract alone first or do we want to go do both? Um, let's pause here and ask for any questions on this one. You want to talk about the split and cost between the two projects? Uh, yes. So, we do have two two schedules. Um, I don't have the schedules in front of me, but I it's the D Avenue is a is a little bit more expensive. Um, in your agenda packets should be the uh the bid tabs. And so, there's a schedule A and a schedule B. And that is a breakdown.

I'll help you out there. It's 79K for E and E for schedule A looks like and then um 83 for schedule B. Schedule B is the uh 23rd and D. Uh and they were both uh lower than other bids and the engineers estimate. Yep. We seem to have a good uh contracting climate right now. Mayor Walters, Mr. Fandini,

um I just I don't have a lot of questions. I just thought this is a very kind of good fiscal story. I mean, 10 biders, lowest bid, 38% below engineers estimate. I think it's a very good example of responsible infrastructure spending. Um I just I'm very pleased with this I'm really glad that we are being responsive to the group of 12-year-olds that signed a petition and asked for this project. Um, council, do you want to uh consider any motions on this project? At this point, Mayor Walters,

Miss Molton, I move that city council authorize the mayor to sign both of these contracts as presented for $162,642. Do you want to do both of them? We have a presentation on the second one still. Um, oh, well, should we just go ahead with the first one since we're halfway there? I think the the first one would be in order if second on the first contract.

Okay. We have a motion and a second to approve the first contract uh for the pedestrian crossing project that includes two intersections, which is a little bit of the confusion, I think, uh with ENE uh uh contracting. Is there any discussion on that motion? Hearing none, I'll take the vote. All those in favor say I. I. All those opposed say no. The eyes have it and that contract award uh for the pedestrian crossings at 23rd and D and Tommy Thompson Trail are approved. Now our next one is the Q Avenue uh pedestrian crossings. Mr. Lee.

Yeah. So this one is, as the mayor said, it's for the Q Avenue pedestrian crossing project. Uh it's in the amount of $267,17.39 with Earthworks Solutions. And so uh this project is is grant funded via the carbon reduction uh grant that we got about two years ago. And uh the main idea behind this project is to provide a midblock crossing uh just just south of the driveway entrance to Safeway. They're at kind of what would be 12th Street if it if it extended across. And that's to provide a safe crossing for people going from Safeway to the marina. Um it's a it's a very com very highly trafficked pedestrian crossing um even though there's no existing crosswalk there. So the uh the rest of the project also includes updates at 11th Street and 13th Street intersections with Q Avenue and those include new ADA ramps at all four corners um rapid flashing beacons at the at the three locations and uh new crosswalk paint. There's currently no crossings across Q Avenue at 13th Street. So, we're adding two areas there. So, there's some um additional port parking right there ne by next to the McDonald's. So, there's a lot of a lot of foot traffic in that area. Um so, some good crosswalk locations. Uh this this is the project is funded by the grant as I said with a 13 and a half% local match. Uh we also obligated three 300 hours of staff time with this project. So up to 300 hours of our staff time will be is reimburseable via the grant. And so that's what I have for that one. Any questions?

Mayor Walters. Yes. Hunt. Mr. Lee, the midblock crossing coming out of the driveway, is that going to mean that we will be able to ride a bike onto the trail from there or will there not be? Yes, it'll uh you can kind of see it in the image to the right uh on the the furthest right there. We'll So, we'll be modifying the Tommy Thompson trail a little bit and it'll connect from there uh right onto the sidewalk right by the exit to Safeway there. That's a huge safety improvement. Thank you. I know this one has been at the top of a lot of people's list for a long time. Yeah. And we're very fortunate to have the grant that we do funding almost all of it. Mayor Walters.

Mr. Fantini. If there's no other questions or discussion, I move that city council authorize the mayor to sign contract 24-018-RN-00002 with Earthworks Solution LLC in the amount of 267,000 267,17.39 to perform the Q Avenue pedestrian crossings project. Second. We have a motion, a second to approve the contract award for the Q Avenue pedestrian crossings project with Earthwork Solutions. Council, any discussion? Hearing no discussion, I'll proceed to the vote. All those in favor say I. I.

All those opposed say no. The eyes have it and the contract is approved. That concludes all of the items of business on our agenda. Thank you, Mr. Lee. Uh, thank you, council. See you next week.