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Minutes - 11/27/2006 COUNCIL MEETING MINUTES NOVEMBER 27, 2006 TAPE READING 0001 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, NOVEMBER 27, 2006. 015 ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Figley Bjelland Cox Lonergan McCallum Nichols Sifuentez Present Present Present Absent Present Present Present Staff Present: City Administrator Brown, City Attorney Shields, Community Development Director Allen, Police Chief Russell, Recreation Services Manager Patterson, City Recorder Tennant 0044 ANNOUNCEMENTS. A) Mayor's Christmas Tree Lighting will be held on Sunday, December 3, 2006, at the Downtown Plaza. A reception is scheduled at the Settlemier House between I :00 pm and 5:00 pm, followed by a candlelight procession from the Settlemier House to the Downtown Plaza for the tree lighting ceremony. Entertainment at the Plaza will be provided by the Dance Dance Dance troupe and local vendors will sell food items between 5:00 pm and 8:00 pm.. The City's Christmas Tree will be lit at 6:30 p.m.. B) Mayor's Holiday Concert will be held on December 12 and 14,2006, 7:00 p.m., at Woodburn High School. Mayor Figley stated that all credit for organizing this annual event goes to Councilor Nichols and she expressed her appreciation to all of the local performing singers and musicians who make this event successful. C) Recreation and Park Board and Budget Committee Vacancies: Mayor Figley encouraged interested members of the community who would like to serve on either the Recreation and Park Board or the Budget Committee to request an application form from the City Administrator's office. 0140 PRESENTATION: CERTIFICATE OF APPRECIATION - FLURRY STONE. Mayor Figley presented a Certificate of Appreciation to Flurry Stone for his volunteer service to the community over the last 21 years by being a member of the City's Budget Committee, in addition to being the Chair of the Swimming Pool Committee and the Community Center Planning Committee. Flurry Stone thanked the Mayor and Council for being allowed to participate on the various committees and for being supportive of the programs and ideas these Committees have worked on over the years. He also stated that he had worked with several City Managers over the tenure of his Budget Committee appointment and Administrator Brown is an excellent budget manager who works at getting projects done as quickly as Page 1 - Council Meeting Minutes, November 27,2006 , "If' 'or- .' -.' COUNCIL MEETING MINUTES NOVEMBER 27,2006 TAPE READING possible. Lastly, he hoped that the Mayor and Council will continue to (1) pursue the development of a new community center and Mill Creek greenway and (2) improve transportation options for commuters with the hope that, once again, the City will be able to have Amtrack make Woodburn a passenger stop. 0439 CONSENT AGENDA. A) approve the Council meeting minutes of November 13,2006; B) accept the Library Board minutes of November 8, 2006; C) receive the Recreation Services Division Attendance Report for October 2006; and D) receive the Library Monthly Report for October 2006. MCCALLUM/NICHOLS...adopt the Consent Agenda as presented. The motion passed unanimously. 0486 COUNCIL BILL NO. 2649 - RESOLUTION ESTABLISHING EMPLOYEE COMPENSATION INCLUDING SALARY AND BENEFITS. Councilor Sifuentez introduced Council Bill No. 2649. The bill was read by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared Council Bill No. 2649 duly passed. 0540 FRANCHISE AGREEMENT WITH UNITED DISPOSAL SERVICE. City Administrator Brown stated that the franchise agreement with United Disposal Service has a term provision that provides for a six-year rolling term in that every January 1 the franchise is for a new six -year period unless the City gives notice of intention to terminate the contract prior to December 1. If notice is given on or before November 30, 2006, the franchise agreement would end on December 31, 2012. The City has had a relationship with United Disposal since the 1960's, however, the rolling term was established in 1978 when the current franchise ordinance was adopted. He stated that this item is not on the agenda because of any problem with the City's relationship with United Disposal. In fact, he has found that working with them to be very easy over the last eight years and they are very willing to immediately deal with any concern that might be brought to their attention. However, the rolling term provision does not offer the City an opportunity to make changes to the contract and his recommendation to send the company a notice of intention to terminate the franchise has been made so that the City can convert the franchise to a six-year fixed period of time so that negotiations can take place. At some point in time prior to the expiration of franchise in 2012, the Council, whether it be the current membership or new members, can decide ifthey want to continue the relationship with United Disposal and, if so, make any changes to the franchise agreement including a decision on a rolling or fixed term. Councilor McCallum questioned if any other franchise agreement within the City has a rolling term provision. Administrator Brown stated that all of the other City franchises have a fixed term ranging from 5-10 years. However, except for Silverton, United Disposal has rolling-term Page 2 - Council Meeting Minutes, November 27,2006 ;.,"~ or-' ..' COUNCIL MEETING MINUTES NOVEMBER 27,2006 TAPE READING franchises in all of the cities in which they provide solid waste services. Robin Murbach, United Disposal Services, stated that rolling term franchises came into existence from the banking side of business in that bankers are not willing to loan a lot of money on a franchise that may have only a couple of years until the end of the franchise. She stated that with the recently agreed upon co-mingled cart recycling program, United Disposal has invested about $500,000 which will be depreciated over a 7-10 year period. On the financial side, a company would not necessarily re-invest for that much money for a 6-year term franchise. As a business partner with the City, she stated that it makes it very difficult to obtain money for re-investing since a 6-year term is only good for 3 years because once those 3 years are up and the company is heading into the last 3 years, it makes decision- making for the company extremely hard. This is the reason as to why, between the cities and the industry, they moved the franchise term from a fixed period to a rolling term. She stated that there are more cities going to the rolling term rather than back to the fixed term concept and she reiterated that a rolling term is a license for them to reinvest in their partnership with a governmental agency, communities, and facilities. She urged the Council to either delay the vote and give them time to address the issues and/or clauses in the franchise ordinance rather than the term of the agreement. Councilor McCallum stated that the current franchise ordinance was adopted when it was a locally owned firm but it is now part of a very large corporation. He felt that bankers would also be looking at the corporation along with the company's past history of working in our community when making financial decisions. Ms. Murbach stated that companies are held to a different standard now under current federal legislation since some large companies have done some bad business in communities nation-wide. Under this legislation, capital expenses with a shorter agreement term than a normal length of time for depreciation must be depreciated over the shorter period of time. Therefore, any investment United Disposal would incur over the next six years will have a depreciation period over the remaining years of the agreement thereby increasing their business expense. Accelerating the depreciation period is a justifiable business expense to come back to the City for a rate increase to their customers. Even though they are a large company, they still have to follow existing laws. 1273 COX/SIFUENTEZ... authorize and direct staff to give the notice of intent to terminate United Disposal's franchise effective December 31,2012. Councilor Cox stated that this action has absolutely no indication of dissatisfaction of the service United Disposal has done over the years but there are many provisions in the franchise that are either obsolete or need to be updated. The business used to be a hometown company but the business is now a corporation and a part of the New York Stock Exchange. Although the management of Allied Waste has, for the most part, kept a hands off approach to the local operation, there is no guarantee that will continue. In turn, Allied Waste might be bought out by some other corporation and the whole philosophy on how the business should operate could change. He felt that the City needs tools to protect itself since there currently is no way to change the agreement unless Page 3 - Council Meeting Minutes, November 27,2006 ..'. "","'I' if' COUNCIL MEETING MINUTES NOVEMBER 27,2006 TAPE READING United Disposal consents to the change. In the past, changes have been made by mutual agreement but the City does not have any right to make any changes unless the franchise is terminated. He reassured United Disposal that the City is willing to negotiate soon rather than waiting until 2012 but at least United Disposal will know that they need to listen to the City's concerns and then negotiations can move forward in a meaningful way. The result may be that there will continue to be some type ofrolling agreement but there would need to be some additional protections for the City such as the ability to re- open on narrow issues. The franchise ordinance that currently exists which goes back, for the most part to the 1960's, has language in it that does not make much sense for the modern day utility franchises. For example, there is no provision in the ordinance that would give the City the right to determine if the sale of the business is in the public interest. He reiterated that the only way the City can address the various problems with the franchise agreement is to give notice by December 1 st then the City can start working with United Disposal to make necessary changes. Councilor McCallum stated that the City is very fortunate to receive the kind of service it does from United Disposal but changes can occur. United Disposal has continued their community spirit since the business was sold to Allied Waste but it is necessary that the City have the ability to look after the public's interest. Councilor Nichols did not feel that this action would change anything between United Disposal and its customers but it will affect the City in that changes will be made to the existing ordinance. Mayor Figley reiterated that United Disposal Service is a most satisfactory franchise for the City to work with but concerns are with the perpetual and, to some extent, the unilateral nature of the contract. The main issue is that there are some terms of the existing franchise that need to be updated and this is a mechanism in order to make that happen. 1888 Councilor Bjelland also stated that most businesses are more anxious to get more rapid depreciation because it is a non-cashable item and will enhance a business's cash flow if you can accelerate your depreciation rate. It may affect the business's reportable income but he did not feel that it would be a significant issue. He felt that the disadvantage to a rolling period is that the City is unable to address any problems for a six-year period after notice has been given unless a change is made by mutual agreement. On roll call vote, the motion passed unanimously. Ms. Murbach stated that she is looking forward to working with the Mayor, Council, and staff in coming to terms with the City on what needs to be changed. 2030 APPOINTMENT OF ADMINISTRATOR PRO TEM. BJELLAND/MCCALLUM... appoint Police Chief Scott Russell as Administrator Pro Tern for the period of November 30,2006 through December 5, 2006. The motion passed unanimously. Page 4 - Council Meeting Minutes, November 27,2006 , '''1' or- '. ...' COUNCIL MEETING MINUTES NOVEMBER 27,2006 TAPE READING 2085 PLANNING COMMISSION OR ADMINISTRATIVE LAND USE ACTIONS. A) Community Development Director's approval of Design Review 06-16 located at 781 Goose Hollow Court (Lot 28) in Phase II of the Goose Hollow Planned Unit Development (PUD): Approval of the design review allows for an outdoor swimming pool and 324 square foot pool house. Community Development Director Allen distributed copies of a letter from J. Moore (750 Hazelnut Drive) whose issue seemed to be more addressed with something the Homeowner's Association should be able to deal with as opposed to the land use proceedings. He stated that this letter was not an appeal of the decision. Mr. Moore was informed that this letter did not qualify as an appeal and he did not come as of this date to file an appeal. No action was taken to bring this issue up before the Council for review. 2235 MAYOR AND COUNCIL REPORTS. Councilor Nichols cautioned motorists to drive carefully in the adverse weather we are currently experiencing. Councilor McCallum shared with the community that Cathy Heisen, Community Liaison person for Silverton Hospital, passed away on Thanksgiving Day. She was heavily involved in a number activities in our community as part of her job and it was his pleasure to work with her for the first 4 years of the Relay for Life event as a tri-chair. He stated that she lost her life to cancer but the battle continues to find cures for this disease. Mayor Figley stated that the community has lost a person who has contributed a lot over the years but she will be remembered in a lot of favorable ways for many years to come. Councilor Cox apologized for missing last week's work session since he had forgotten the meeting but he has since spoken with City Administrator Brown on what happened at the work session. He hoped to be able to have some input on the Front Street issue before any final action is taken but he will soon be on vacation and will miss the first meeting in December 2006 and the first meeting in January 2007. Councilor Bjelland stated that he may also be unable to attend the December 11,2006 Council meeting. Administrator Brown stated that staff would not be able to bring anything back to the Council on the Front Street matter until January 2007 and, if possible, staff will hold off on bringing this issue back to the Council until their second meeting in January. 2564 EXECUTIVE SESSION. Mayor Figley entertained a motion to adjourn into executive session under ORS 192.660(1)(d). NICHOLS/MCCALLUM... adjourn into executive session under the statutory authority cited by the Mayor. The motion passed unanimously. Page 5 - Council Meeting Minutes, November 27,2006 , '~"" ~,.... .. COUNCIL MEETING MINUTES NOVEMBER 27, 2006 TAPE READING The meeting adjourned to executive session at 7:43 p.m. and reconvened at 8:03 p.m.. Mayor Figley stated that no action was taken or decisions made by the Council while in Executive Session. 2604 ADJOURNMENT. MCCALLUM/NICHOLS... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:04 p.m.. APPRO ATTEST J1! ~ ;;:'-<^ '--~ Mary Ten nt, Recorder City of Woodburn, Oregon Page 6 - Council Meeting Minutes, November 27,2006 , '''''It' 'or-" .. Executive Session COUNCIL MEETING MINUTES NOVEMBER 27, 2006 DA TE. CONFERENCE ROOM, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, NOVEMBER 27,2006. CONVENED. The Council met in executive session at 7:45 p.m. with Mayor Figley presiding. ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Figley Bjelland Cox Lonergan McCallum Nichols Sifuentez Present Present Present Present Present Present Present Mayor Figley reminded the Councilors and staff that information discussed in executive session is not to be discussed with the public. Staff Present: City Administrator Brown, City Attorney Shields, City Recorder Tennant The executive session was called under the statutory authority of ORS 192.660 (1)( d) to conduct deliberations with persons designated by the governing body to carry on labor negotiations. ADJOURNMENT. The executive session adjourned at 7:58 p.m.. APPRO ATTEST /l1CLu-L ~. Mary Terh/ant, Recorder City of Woodburn, Oregon Page 1 - Executive Session, Council Meeting Minutes, November 27,2006 ''''f or-' .