City Council

^ s^^ s^s- s^S? ^ Mayor CouncilPresident Councilors Jairo Rios-Campos Dara Tan John C. Miner Mark dark Patricia Smith fy' aTy.°F.Wood re THREE CITY COUNCIL MEETING MINUTES April 9, 2025-6:00 PM PRESENT Wood VillageMayorJairoRios-Campos, Council PresidentDaraTan, CouncilorsJohnC. Miner, Mark dark and Patricia Smith, City Manager Greg Dirks, Public Works Operations Manager Erika Normine, Public Works Projects Manager Becky Gallien, Director of Finance Seth Reeser, City Attorney JeffCondit, and interested parties. Troutdale MayorDavidRipma, Councilors CarolAlien, John Leamy, Glenn White,ZachAndrews, Jesse Davidsonand GeoffreyWunn, City ManagerRayYoung. FairviewMayorKeith Kudrna, Councilors JeffDennerline, Steve Marker, E'anTodd, JenniWeber, Steve Owen and Paul Copeland, City Manager Nathan George. ABSENT None. JOINTDISCUSSIONAND CONSIDERATION PERTAINING TO CITY FIRESERVICES OPERATIONS Rios-Campos asked those attending virtually to mute their microphones for the time being and thanked everyone whowas in attendance, including GreshamCity Fire and ClackamasDistrict#1. Dirksthankedeveryone, aswell. Dirks stated while tonight's discussion was over fire, the real problem is the Oregon property tax system. Dirks reviewed the meeting agenda and the meeting's intent to find a solution for fire and emergency services. Dirks stated the three-city commissioned AP Triton fire and emergency service analysis and feasibility report is not yet finalized nor is the Tiberius economic analysis report. Reeserintroduced himselfas the FinanceDirectorforthe CityofWoodVillage. Reeser reviewed the history of Oregon property taxes and discussed the issue with the current property tax methodology, whichhas been in effect and unchangedsincethe 1990s, Reeserprovided an exampleofthe discrepancybetween taxableassessedvalue and real marketvalue using the CityofWoodVillage'sdevelopment project atthe Bywayand howthis discrepancycreatesa lack of revenue to payfor publicsafetyservices as those costs continueto increasewhilethe tax revenuedoes not keep up withthis increase. Reeserreviewedexamplesofcompression and explainedwhycompression affectssome properties and not others. Reeserprovided an exampleof property taxcompression, noting WoodVillagewould need to raise ratesto $17 beforestarting to seecompression. Reeser reviewed a graphic highlighting the assessed value in the four-city region. Reeserstated cities do nottaxto earn profit butto providepublicservices. Reeserreviewedthe real marketvalue and the taxableassessedvalue in WoodVillage,explainingthe real market value has dropped significantly while the cost for services hasstayed constant. This growing gap meansthe ratewould need to increaseto keep up withthe constantcostofservices. Reesernoted this is an issue faced by all small cities, many of which have chosen to annex into fire districts to ensure services. Reeserreiteratedthe taxes raised go towardcostofservices. Reeser asked the Councils for questions. Markerasked ifthe numberswould changegiven the current political climate. Reeser explained they could change depending on widespread economic and market changes but explained home values would need to drop by 50% to get backto levels from 30 years ago. Troutdale City ManagerRayYoungthanked Reeserfor hisexplanation. Young reiterated this is a common issue across small cities in Oregon due to the effects of Measure 5 and Measure 50. Young stated the packet being handed out by George is a manual from the LOGon howcities can increase their revenues, Young explainedthe threecities are the only ones in the Metro regionwho haven'ttaken actionto increase revenues. Young stated Troutdale is facinga cost increasefor police service, aswell. Young explained the three most popular options considered by other cities are: joining a fire district, which frees up General Fund revenue for other services, passing a local option levy, which expires after 5 years, or passing a public safety fee, which is typically put on a resident's utility bill. Young stated Gresham opted for the publicsafetyfee option lastyear. Young explained that the three cities are the only ones in the Metro region that do not use other methods besides those from their General Funds to cover fire service. Young reviewed the various reasons why Portland, Hillsboro, Lake Oswego, Gladstone, and Gresham have not created or annexed into a fire district. Young stated whichever avenue is selected by the three cities should take into consideration both the short-term and long-term costsforservice. Young askedthe Councilsforquestions, Miner remarked that Young captured the issue well for the Councils. Dirks reviewed the historyoffire service in the three cities, stating the threecities left Fire District 10 in 1995due to increasingcosts and contracted with Gresham Firefor services, Dirks mentioned there was a SAFER Council in 2020 to evaluate regional options with a recommendation to look into a district model. Dirksstated the currentcontractwith Greshamexpires in a fewmonths andthe cities received the first proposal from Gresham in September2024. Dirks reviewedthe proposalsfrom Greshamandcounterproposalsfrom the three citiesduringthe renewal process, noting a proposal camein February2025with the samecost asthe Septemberproposal butwith a three-yearlead in period at 25%, 50%, 75% and then full rate. Dirks stated the city managers met collectively to create a proposal together, which resulted in the request forthe three-yearlead in period. DirksexplainedGresham respondedwith a final proposal in March 2025with a 10-yearagreementwith a two-yearlead in period at 75%, 85%, and then full rate. This proposal included a one-yearopt out provision with a requirementto paybackthe lead-in period ifopting-outin years 1-5. Dirks reviewed otherpointsofthe final proposal, includingoffsetsfor permits orfire life inspections, noting therewould be no increaseor changein serviceand no owned assets orownershipstake. Dirks reviewed a financial breakdown ofthe Gresham proposal costs with projections through 2030. Dirksaskedforquestions. OwenaskedwhatFairviewcurrently paystoday. Reeserand Dirksstated approximately$1.2 million. Owen asked ifthe new Fairview rate for 2026 is the $2, 2026, 000 shown in the presentation. Dirks confirmed. Dirksstated AP Triton contacted ClackamasFire District 1 as partofthefire and emergencyservice analysisstudy, stating there has been increasedfrom ClackamasFireto serve the three citiesoverthe last few weeks. Dirksstated the three cities received a proposal on April 7thfrom ClackamasFire and reviewed pointsfrom theirproposal, noting Gresham Fire may also havesome ofthese servicesto offer, as well, Dirksexplainedthe costs proposed by ClackamasFire, stating partofthe proposal includesproviding a locationfor a station andfor a newapparatus, a startup costshareforpersonnel, with yearsthree and beyond requiring the full rate with option, if annexed into District 1, then a levy renewal vote in 2027 Dirksstated servicewould beginJuly 1, 2025with an initial three-orfour-person companywith additionof secondcompanybyJanuary1, 2026. Dirksreviewed a financialbreakdownofthe Clackamasproposal costs with projections through2030and compared it to the Gresham offer, explaining it is more costly than the Gresham offer. Dirksexplainedthe three cities haveto acceptthat, regardlessofwhichdirectionthecitieschoose, theywill need to pay more. Dirks presented comparisons of the taxable assessed value rates of the Clackamas offer and the per capita rate of the new Gresham offer. Dirksreviewed considerationsforthe three Councilsconsiderations, including"renting"vs "owning"and best long-term financialconsiderations,value, and service. Young stated the financialcomparisonsincluded a discountforyearsone andtwowhichwould be lost if opting out early ofthe Gresham contract, noting the discount would also be lost ifvoters opted to join a fire district within the first five years ofthe new Gresham contract. Owenaskedforconfirmation thatthereweretwo optionstonight: Greshamor Clackamas. Dirksconfirmed. Todd asked if Gresham mentioned any proposalthat includesthe abilityfor residentsofthe three citiesto havea say in leviesor otherfire related matters. Dirksexplained both proposals arecontractual butstated there is expectationwith District 1 to eventually annex and join the district, but since Gresham is not a district, this would not be an option. Todd asked if Gresham hadever proposedjoining a newdistrictwith the threecitiesthatwould includethis representation. Young stated those discussions happened as part of the SAFER Council in 2020, but those efforts were abandoned and never picked back up. Young explained the three cities commissioned an independent financial report that showed, ifjoining a fire district, compressionwould have no impacton property tax revenues. Thethreecitiesare still waitingon Greshamto sharetheirown similartax revenue reportwith them, noting Gresham is notwilling to committo three city representation until the report is finalized, Dirksstated thethree citiescannotpresumewhichdirection Gresham maychooseto go in the future or howtheircommunitywantsto progressforward, districtor not. Miner stated people may not know how a fire department works under a City Council versus a District Board. Youngstated two board members from Fire District 10were presentand could potentially answer. Young explained a fire district board holds regular board meetings, tax rate, and directly accountable to those who elect them. Minerasked howthe board is determined. Youngexplained Fire District 1 and Fire District 10 arean at-large boardwhich means members comefrom all overthe district region. Dirksstated firedistrict boardsare singularfocused in comparisonto fire departments managedby cities, which have manyfocuses. Mineragreed thatcities have lots of responsibilitiesand competing servicesand costs. Minerstated it would be embarrassingto be circling backto this sameconversation in ten years. Markerstated it seemed Gresham is the elephantin the room and discussion hassurroundedwhat Gresham has and whatthethreecitiesdon't have. Markeraskedwhata firefightermakes. Young askedfor a responsefrom a firefighterin attendanceas to whata startingfirefighterforthe Gresham Fire Departmentmakes. The firefighter in the audience stated, and Dirks repeated, the salary starts at $74, 000 and tops out at $108, 000, not including benefits. Dirksexplainedthe three citiescould try to providethe service themselves, but it wouldonly befeasiblefor a shortperiod oftime and would be limited service. Rios-Camposstated the WoodVillageapproachhasbeen for a regionalsolution and would liketo only haveto go to the voters onceto bestfit theirneedssince any levy would have to go beforeWoodVillage voters. Rios-Camposurged the otherCouncilorsto considertheircommunity needstoo. Ripmaexplainedthe question at hand is should the three-citiesjoin a fire district, stating he has been convinced it is the wayto go. Ripmastated the three citieswould need to staywith Greshamfor at leastfive yearsto avoidthe opt-out pay back and mentioned Gresham has shown no interest in forming a district. While Troutdale would pay more in the long run, in Ripma's opinion, it is the better long-term solution, and Clackamas has offered an excellent proposal. RipmaexplainedGresham has provided excellentservice for 30 years, butthe cities are at a crossroads and must decideif it's time tojoin a district. Ripmastated going to a vote and askingthe communityfor more money would be a hard sell butwould beworth it in the long run. Young stated Troutdale hired a political marketing firm last summer, and Wood Village is currently working with thesamefirm nowin case an operating levy is needed in May2026. Dirks explained Wood Village contracted the firm long before the Clackamas proposal because Wood Villagewould need to passa levy whichwould require a vote regardless. Todd stated he supports community members beingableto vote on theirfire board ratherthan having no say with Gresham. Kudrnaexplained he has neverbeen disappointedwiththe currentservicefrom Gresham but understands it is time to find a better financial solution. Copeland asked aboutthe pros and cons ofjoining a districtin ClackamasCountyversus Multnomah County. Young explainedTualatin Valley Fire Districtserves three countiesand ClackamasCounty Fire District 1 is an independentgovernment agencyand serves multiple counties, aswell. Dirksexplainedshort-term serviceswould becontracted, and ifjoining a district, servicesare not bound by county lines. Dennerlineasked howeasyit is to undo an annexationif needed. Dirks stated it is a process but can be done. Whiteasked if responsetimes wouldbe improved with Clackamasversus Gresham. DirksexplainedGresham has providedgood serviceforthe value, noting it seems probablewith a dedicatedstation in Troutdale and in the WoodVillage/Fairviewboundary. Havingcloserstationswould likelydecreaseresponsetimes. Young agreed, stating the ClackamasFire DistrictChiefdid not seem to indicatecall times would beworse. Minerstated having a station withinourarea is oneof the benefitsof a firedistrict. Minerexplainedthis discussion has neverbeen aboutthefirefightersin Gresham but is a discussionabout how to best serve the residents of the three cities. Youngstated the costforthefirst twoyears underClackamaswould be more in Troutdale than if selecting Gresham but given it seems likely an annexation is likely before five years, the pay back to Gresham for the lead in would level cost overall. Young explained continuing to pay out of the general fund would put pressureon the cities. Smith asked aboutnextsteps. Dirksstated his appreciationforour regional partners and explained,if a firedistrictis the solution, hopefullythere is a good wayforwardto maintain relationships. Young agreed butstated we must thinkaboutourcommunitiesfirst. Youngexplaineda districtseems the wayforwardversus continuingto contractforservice. Rios-Camposstated the nextstep would befor each mayorto convenetheircouncilfor a vote, Rios-Campos entertained a motion at 7:28 PM. Miner motioned to move forward with conversations with Clackamas Fire District 1, Tan seconded, the WoodVillageCityCouncilvoted4-0, the motion passedwith dark abstaining, Youngexplainedthis is a worksessionand votes are not binding.Officialvotes would happen later, butthis is direction for staff. Minermodifiedhis motion to havethe threecity managerscontinueconversationsand bring forward a future proposal, Smithseconded, the WoodVillageCity Council voted 5-0. Kudrnamotioned to havethe FairviewCity ManagercontinueconversationswithClackamasFire District 1, Weberseconded, 7-0, motion passed. Ripma entertained a motion to have staff continue conversations for contractual services with Clackamas Fire District 1, White asked for discussion during the motion, Ripma agreed. Whitestated he is gladthe vote isn't bindingas hewould like publicinput. Whitealsostated he hopes the doorstays open to Gresham. Andrewsasked aboutthe timeframeforannexation,pondering if it could bedone immediately. Dirksexplainedannexationis rarelydone immediately, noting generallytwoyears is quickwith threeto five years being more common. Andrewsstated, hypothetically, ifthe Greshamoffered is pursued and the threecities remained for at least five years before joining a fire district, then it would be an addition three to five years before funds were off thecity's bookswith potential forcontinuedcost increases. Ripmaclarifiedthatthe Council couldn'tmotion for Gresham butcould motion to haveTroutdale staff pursuecontractingwith Fire District 1 with theeventual pursuitofjoining the district. Youngexplainedthe motion would allowstaffto continueconversationswith Fire District 1, but nothing is stopping Greshamfrom coming up with a newproposal tojoin the threecities in a fire districtand negotiating anothershort-term contractforthe in-between period. Tonight's motion is to directstaffto continue conversations with Fire District 1. Andrew motioned to have Troutdale staff to continue conversations with Fire District 1, Alien seconded, voting 6-0, the motion passed. Dirksreiterated the desirenotto harm our regional partners and thankedeveryonefortheirtime. Rios-Campos thanked stafffor all their work and for the Councilors for attending the meeting. Rios-Camposadjourned the meeting at7:36 PM. Jalro nios-Campos MA OR ATTEST: CITYRECORD R