City Council

A^-. '...V Mayor CouncilPresident Councilors m^Wood JohnC Miner JairoRios-Campos LynneaAmend Mark dark Dara Tan re WOOD VILLAGE CITY COUNCIL MINUTES OCTOBER 10, 2023 PRESENT Mayor John C Miner, Councilors Lynnea Amend, Mark dark and Dara Tan, City Attorney JeffCondit, City Manager Greg Dirks, Director of Public Works John Niiyama, Director of Finance Seth Reeser, and interested parties. ABSENT Council President Jairo Rios-Campos. CITIZENCOMMENTS (NON-AGENDA ITEMS) Dirksnoted that Mr. Coates lives on Walnutand wasconcerned aboutthe intersection at Birch and 238th Cars park at the intersection, blocking visibility and making it difficult to enter or exit 238th. The public worksteam has installed no parkingsigns25 ft from the intersection. Dirksmentioned thatCultivate Initiativeclearedthe vegetation along the County rightofwayon 238th. Minernoted thatthe County has not been taking careoftheirrights-of-wayin the City. Dirks added that the owner of Gresham Ford was appreciative ofthe vegetation work on 238th and will look at supporting Cultivate Initiative. PUBLIC SAFETY REPORT Lt Hemsworth noted therewere 153dispatchedand 168self-initiatedcalls, both slightly above the prior month, Call response time was slightly faster than average. There were 6 hit and runs, all unattended parked vehicles. There were not any stolen vehicles in Wood Village last month and one stolen vehicle was recovered. There were a couple vehicles broken into at Treehill and extra patrols were provided in that area. dark askedaboutthe accidenton the 238thhill thatrequired a crane. Dirks notedthat a largetruck hadturned over and neededthe crane to get upright. Miner asked if the MCSO is involved in efforts to catch stolen vehicle rings. City Council Minutes October 10, 2023 | Page 1 Lt Hemsworth responded that MCSO partnered with othertaskforces andjurisdictions on several stolen vehicle missions. Portland has seen a reduction in stolen vehicles through their efforts. Metro is still higher than before2020, but it is trending down. Dirks added that the City has steering wheel locks for qualifying Hyundai and Kia vehicles. CONSENT CALENDAR A. City Council Minutes . September 12, 2023 . September26, 2023 B. NewOLCCLiquorLicense dark asked if it was unusual forChipotleto serve alcohol. Minercommented thattheyserve beerand wine. Dirks added that Chipotle should be open by the end ofthe year. Upon motion by dark, seconded byTan and passing 4-0, the Consent Calendarwasapproved. RESOLUTION 26-2023: SUPPLEMENTAL BUDGET Miner opened the public hearing on the supplemental budget hearing. Reeser noted this is a correction to the adopted budget process for FY24. Oregon budget law only allows for a 10%change in funds between the approved and adopted budgetunless another public hearing is held. Therewere changes thatcame in afterthatdouble checkwas performed and consequently thewater and sewerfund appropriation changes during adoption weregreaterthan 10%, Staffwill be adding additional budget checking steps to prevent this issue in thefuture. Staffreached out to the Tax Supervising and Conservation Commission (TSCC) regarding the correction process. So, we are holding a supplemental budgetwith a public hearing to roll backthechanges thatexceeded the allowed change amountand will then re-considerthe additionsduringthe open publichearing, Minernoted thatthis process allows for publiccomment on the additions thatexceeded the cap, He added that sometimes you arewaiting for bidsor something to come in thatwould require a supplemental budget. Reeser noted that some organizations he's worked for automatically roll everything budgeted but not expensed in March, butthere's a balance between that and keeping the budget tight. The items removed include the SCADAupgrade roll over at $75, 000, the SDC/rate model roll over at $25, 000and the Well 3 mechanical addition at $70, 000. Reeser noted that the sewer fund correction included the roll over projects for the CCTV project at $200, 000, the SCADA upgrade at $75, 000 and the SDC/rate model at $25, 000. The sewer CCTV was bid was awarded and the bidder backed out late in the year. The first step will reverse these items from the budget and the second action will budget for these amounts, with the added item of 70k for Well 3 mechanical coming out of contingency since it was not a roll over item which comes outofthe beginningfund balance. City Council Minutes October 10, 2023 | Page 2 Dirks thanked Reeser and the team for catching and correcting the problem quickly. Minerclosed the publichearing. Upon motion by Amend, seconded by Tan and passing 4-0, Resolution 26-2023 was approved. DISCUSSION: UTILITY RATES Reeser presented the waterand wastewater rate analysis. The issues aresimilar in both waterand sewer Usage and revenue are relatively well aligned. In most cities, single family residential would account for closer to 60% to 70% of the revenue. Our city has almost 50% of revenue from business and we have a customer basethat has more businessand multi-familyaccountsthan singlefamily. This leadsto increased volitivity in the revenue system. Almost 40% ofthe business revenue comes fromjust 3 accounts. In order to reduce volatility by increasing the base charge, almost all the businesses would see an increase, and only 10%would see a minordecrease, Inthe shortterm about 85to 90% ofourcosts are fixed. There are some budgeting measures thatcan be used to help reduce the year-to-year volatility based on weather. One of the suggestions at the last meeting was to pull the 400 cf allotment out of the base so lower users are not paying forwaterthey are not using, When you makethis change, it increases the volatility ofthe revenue. There is a tradeoff between fairness, volatility, and stability. We did an analysis with a high base charge and low use charge compared to a lower base charge and higher use. There is not really a wayto reduce the revenue volatility, because our revenue is soskewed based on account types. There are a fewhigh users thataccount for most ofthe revenue. Increasing the base charges would likely double the utility bill for most customers andwould not befair based on actual usage ofthe system. Staff recommends the following changes to the utility rates: 1. Implement a sewervolume chargeforsingle family residential accounts using the lowerof the winteraverageorcurrent usage. 2. Remove the 400 cf allotment from the residential water base rate. 3. Changefire hydrant meter rental base and consumption rates to match non-residential, 4. Changethe multi-family base discount to 10% lessthan singte-family. This rate is currently 5% less and billing a multi-unit account saves time and materials. The first two changes would allow customers greater control over their utility bills. The last two changes were suggested to clean up some discrepancies in our rate structure. dark commented that if you use more water, it should cost more, He asked about increasing the consumption rate for usage tiers. Reeser responded thattiered pricing forconservation wasdiscussed with Donovan, butone ofthe problems with that rate structure is the marginal unit is relatively cheap to produce. Selling less water does not reducecosts very much. Dirks added that three businesses account for most of the usage and ifthey left, we would need to adjust all the rates to cover costs. City Council Minutes October 10, 2023 | Page 3 Reeser noted that a tiered usage structure might make it influence the high use businesses to relocate. None of the businesses are currently complaining about the rates and the proposal keeps the business rates the same. Miner noted that residential rates wereslightly lowerand business rates were slightly higherwhen comparedto neighboringcommunities. dark asked ifAdesa has a regular carwash with recycling. Dirks responded that it is a full reconditioning facility, andwe are notsure ifthey are using graywater dark asked if it affects our sewer system. Dirks responded thatwe have a strong industrial pre-treatment program and theydo not meet the standardsthatwould require industrial pre-treatment. Amend asked forclarification thatthe proposed changeto remove the400 cf reduces the basecharge and slightly increases the use charge. Reeser responded that we tried not significantly shift the costs between user categories and instead based the analysis on generating thesame amount ofmoney over a two-year historical period. Amend added that anyone over 900 cf usage would see an increase in their bill. Reeser noted that the packet includes projected waterrates underthe various scenarios. The users that use less than 400 cfwould see a reduction in their utility bill including a considerable reduction in sewer. The average single-family consumption is about 600 cf and that rate will remain about the same overall for customers. Dirks noted that during thesummer months there is a lot ofwaterused thatdoes notgo into the sewer system andwewould beusingwinteraveragesto calculate thesummersewerchargesforresidential customers. Reeser added thatwas another reason to delay implementation ofthe new rate structure, sowe havetime to communicate this to customers and they can pay attention to their usage over the winter months. Miner likes the idea that you save money ifyou conserve and that residential customers will have the ability to save money. He would rather have a little revenue volatility and keep rates lower for residents. The volatility issue is more a budgeting issue to make sure thefunds have a healthy balance. Dirks added thatyou can plan fora wettersummer by increasing the ending fund balance and reserves. Reeser added that one of the solutions to address revenue volatility is moving more capital to a sinking fund and doing more preparation for equipment replacement. That will help mitigate some ofthe volatility. We can also set a highercontingency and recognize that a larger increase might be needed in anygiven year. We could try to build a rate structure to account for this, but it makes more sense to deal with issues as they arise ratherthan increasing the rates forsomething that might not happen. City Council Minutes October 10, 2023 | Page 4 Amend asked how much volatility could be anticipated. Reeser responded that so far, we have not needed to add more than 2 or 3% over inflation. Donovan mentioned in the analysis that our system is in really good shape and there are no significant challenges. Amend clarified thatany increasewouldn'tbe shocking. Reeser noted that if the two largest businesses leave, that could result in a large increase, but that's not something we could or should plan for. Dirks added that we can try to flatten out any increase needed by keeping a good ending fund balance. Miner commented that we should have some time to react ifwe keep the ending fund balance healthy. Reeser added that Donovan put together a utility rate model tool that will allow us to smooth our rates based on large capital projects or other issues. Reeser noted the senior program currently offers a 25% offthe basechargeforwater and sewer. Staff would like to replace this program with something more manageable. The proposed adjustment to the base fees will lowerthe discount they would be receiving byabout50%. The current program is open to directly billed retired people and does not include any means testing. It is not reviewed once the rate is approved and doesn't automatically change if non-retired people move into the residence. Staffsuggest removing this program and allowing any existing customers in the program to use the utility assistance program one additional time annually with no means testing. This program would be more beneficial for low-income seniors and would redirectfundsto people more in need. Amend asked if the low income and senior discount would be the same. Reeser responded that low-income seniors currently in the discount program would be ableto apply forthe utility assistance program 3 times a year. Seniors in thecurrent discount program that don'tqualify forthe utility assistance would still be able to apply once a year. Tan asked if they would have to apply for the program. Reeser agreed they would have to apply. Dirks noted that the current program isjust for retired and is not means tested. Reeser added the current program does not permit non retired people living in the house and that doesn't get checked afterthe initial application. Reeser commented that nextsteps if Council likes the proposed changes, staffwill move forward with outreach and bring backthe newrate model in the spring. Staffwill workwith legal counsel to prepare thecode change and figureout howto handlethe existing retired program members. DISCUSSION: FIRE SERVICE OPTIONS Dirks presented the background forfireservice in Wood Village. In 1995the City moved awayfrom Fire District 10 to Gresham fire which was more cost effective at the time. The IGA with Gresham renews every 10 years with the last renewal in 2015 and that was fairly contentious. In late 2020 to mid-2021, the cities engaged with SAFER process to discuss service models, needs and how to best provide emergency City Council Minutes October 10, 2023 | Page 5 services. Thefire studycompleted in 2013showedabout80%ofcalls were loweracuity medicaland only 20% werefireorcritical incidentcalls. The studywasrecently updated, and that ratio hasstayed the same. The fourcity managers have metto discussfire service. Gresham is seeking a firm to evaluatethefinancial impacts of a fire district and is considering running the operating levy vote in the May 2024 election. Troutdale has a public safety advisory committee reviewing fire and police. The committee has met with Fire District 10and Mitch Snyderand is working on recommendationsfortheirCouncil. Fairviewis leaning towardsjoining Fire District 10. Fire serviceoptions includeremainingwith Gresham,voting to mergewith Fire District 10or creating a new district. The current cost offire service through Gresham is approximately $550, 000 and there is one more year ofthe contract with a 4. 5% increase. The renewal would likely increase the cap to 6. 5% which would increase the cost to about $1. 1 million by the end of 2035 with property tax revenue at about $1 .5 million. Wewould not haveany abilityto influenceserviceorcosts. Potentialfundingoptions include increasing franchise revenues or a public vote on a public safety levy. Merging with Fire District 10 would require a public vote. Their current rate isJust under $600 for a typical single-family home and the city's cost would be about$975,000.They primarilycontractwith Greshamforserviceso wewould be paying moreforthe same service we're getting today. There would be the opportunity to get on the board and have more input on services and costs and the potential to make incremental changesovertime. Thisoption wouldrelieve the generalfund ofabout$550,000 and thosefundscould be redirected to other resourcesthatthe community wants. Creating a newfire district would involve several steps before it could go to a public vote, includingeconomicfeasibility, service needs, operating budgets, petition to County, and multiple hearings. Itwouldtake yearsand a monetary investment before it goesto the publicfor a vote. Wewould also need to providethe currentservice whilethe newdistrictis beingformed. Thisoption wouldenable us to establish a service model that fits the current needs and would work best with participation from the other cities. Tan asked ifwe decideto go with somethingotherthancreating a newdistrictforthe nextten years, do we thinkwewouldwind up havingto create a newdistrict 10yearsfrom now. Dirksnoted that at some pointwewill have problems payingthe bill, sowe mighthaveto join a districtto relievethe generalfund. dark asked ifwe could workwith cities in Washingtonto join a district. Conditnoted that interagencyagreementscan cross state lines, but a governmental entity cannotcross state lines without legislation in both states. Dirksaddedthatthere has been somediscussionaboutthe ClackamasCountydistrict. MineraddedthatTualatin Valleywould be anotherpotential option. Minercommented thatwhetherwejoin orstart a newdistrictthe voters would haveto approve it andeven ifwe workwith the othercities, it may not pass in theircities. He addedthat since Fire District 10already exists it would be more realisticto join it than create a newdistrict. City Council MinutesOctober10, 2023 | Page 6 dark noted that the Port of Portland is part of Fire District 10. Miner responded that we would not be able to join or create a district in one year, so it makes sense to extend the fire contract with Gresham to maintain the service while we start working on moving to a fire district. Ifwe passed a public safety levy in Wood Village thatwould payforthe firedistrict and relieve the generalfund to coverotherrising costs. Reeser added thatjoining Fire District 10 is easieradministratively, but the conversation is paying more for the same service. Whereas creating a new district is a more complicated and lengthy process but the narrative is creatinga more efficientmodel and controlling costs. Miner noted that we need a different service model. We need to manage costs while we move towards a district so we can have a seat at the table and make the service model efficient and control costs. Amend valuesthe servicewe have nowbutthinksthere are more innovativeand efficientoptionsthat could allow for more collaboration in the service model. Dirks noted that Council seems interested in a district. Staffwill look at steps for creating a newdistrict and talk to District 10 to see what that would look like. Amend addedthatthe services could be tailored to ourcity more than theyare now. Miner agreed that we should begin discussion to extend the IGAwhile we explore other options. Gresham also has other concerns. It's hard to get people to vote for something that costs money when they are happywith the service they have, so we need to start talking to the community aboutservice and costs. Dirks added it's important to note that we aren't in financial trouble right now but want to prevent that situation from happening. Reeserwe'll eventually be in the same boatas Gresham is. They have taken steps to increase franchise fees and have run a coupleof levies becausethey knewtheyweregoingto run into issues. OTHER ITEMS Dirksnoted thatthe newwebsitelaunchestomorrow at9 am with lots of newfeatures and a great look. El Programs Hispano Catolico hasa Diade los Muertos celebration Nov 1stand 2ndand asked us to be a sponsor. We could use council discretionary funds for it. Council agreed on a $500 contribution. Dirks added that there is a meeting scheduled with the Grand Ronde for Oct 26th from 10 am to 1 pm for updates and a luncheon. Miner mentioned there's an East County Rising Summit this Saturday at MHCC for the entire day. He also noted that the Council photos were put on display and thanked staff, Miner suggested a public service announcement about financial scams. Tan added that there are lots of scams right now and the bank frequently receives fraudulent texts. City Council Minutes October 10, 20231 Page 7 ADJOURNMENT With no furtherbusiness, the Council adjourned at 7:44 pm. Jo C. Miner MAYOR ATTEST: ^^a CITYRECORDER City Council Minutes October 10, 2023 | Page 8