Minutes - 09/28/2009COUNCIL MEETING MINUTES
September 28, 2009
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0001 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF ~VOODBURN,
COUNTY OF MARION, STATE OF OREGON, SEPTEMBER 28, 2009.
CONVENED. The meeting convened at 7:00 p.m. with Mayor Figley presiding.
0015 ROLL CALL.
Mayor Figley Present
Councilor Cox Present
Councilor Lonergan Present
Councilor McCallum Present
Councilor Pugh Present
Councilor Schmidt Present
Ward VI Council Position is Vacant
Staff Present: City Administrator Derickson, Asst. City Attorney Stuart, ,Public Works
Director Brown, Community Development Director Hendryx, Acting Police Chief
Blevins, Interim Finance Director Shearer, Community Services Director Row, HR
Assistant Sprauer, City Recorder Tennant
0050 APPOINTMENTS:
A) Economic Development Committee:
Mayor Figley appointed Horst Raustein to serve on the Economic Development
Committee who was suggested by Councilor Pugh.
PUGH/COX... approve the Mayor's appointment of Horst Raustien to the Economic
Development Committee.
The motion passed unanimously.
Councilor McCallum requested that future appointments include background information
on the appointees.
0143 PRESENTATION: URBAN RENEWAL.
Economic & Development Services Director Hendryx presented background information
on the urban renewal district within the city and explained the need to review the plan in
the near future. Urban renewal is a tool used by governments to improve poorly
performing areas and the city's plan was intended to revitalize the historic core of the
downtown area and present a positive image, create a safe environment, provide a place
for business to thrive, and to fund projects in the downtown area and along Highways
99E & 214. The plan focuses on infrastructure improvements, primarily street
improvements. The Downtown Development Plan created a vision and established broad
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goals that were used as the basis for the Urban Renewal Plan. The Downtown
Development Plan calls for specific improvements and specifies the projects that are
incorporated in the Urban Renewal Plan. Urban renewal is financed through tax
increment financing, in which a portion of property tax revenues from properties within
the urban renewal district are designated to support financing for improvements to the
area. Tax increments are used to repay municipal bonds and the debts of the urban
renewal agency, and to fund projects in the urban renewal plan. New taxes are not
imposed to fund urban renewal, Woodburn's Downtown Urban Renewal Plan does not
authorize any special assessments, and urban renewal should not affect the total amount
of tax revenue received by the school district. The urban renewal district will last twenty
years and the tax increment financing will also remain in place for twenty years or until
the bonds are paid off. The plan does not propose that the City use its condemnation
power or require property owners to sell or modify their property. The Urban Renewal
Plan was developed in 1997 and approved in 2001 with Council designated as Urban
Renewal Agency Board. In total, $29 million was identified and authorized for public
improvements over the twenty years and was broken down by program: streets totaled
$10,026,073; undergrounding $3,128,657; redevelopment $5,040,000; fire $1,135,000;
other $1,504,500; and administration $2,270,000. Ultimately, the Urban Renewal
Agency must consider the Downtown Development Plan and modify the Urban Renewal
Plan accordingly. It is important to periodically review the projects and financing, and
prioritize funding.
Mayor Figley thanked Economic & Development Services Director Hendryx for his
presentation on the City's Urban Renewal Plan.
1192 PRESENTATION: ODOT -TIGER GRANT.
Public Works Director Brown introduced ODOT Project Leader Allan Fox and
complimented him on all the work he did to obtain the Transportation Investment
Generating Economic Recovery (TIGER) Grant. Allan Fox will be speaking on the status
of the Interchange project and the adjustments made to the Transit Facility Plan based on
the input received from the August 31St joint City Council/Planning Commission
Workshop.
Mr. Fox first explained that HB 2100 was not referred to the voters since insufficient
signatures were obtained to place the item on the ballot. The bill allocated $43 million to
the Woodburn Interchange Project but was conditioned on two consecutive quarters of
economic growth or the year 201 1, whichever comes first. The TIGER Grant also
changed the project's final objective from a preliminary to a full set of plans. The
application was for $30 million. Fourteen hundred applications were received nationwide
for a total of $57 billion. The Oregon Transportation Commission endorsed ten
applications and fve or six other application were submitted by cities on their own. He
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stated that more than half of the applications were highway or bridge projects and Oregon
will be lucky to receive one. They will announce the grant recipients in January. Mr. Fox
mentioned that one piece of good news is that Federal Highways had already contacted
him regarding an inquiry on the grant application. He reminded Council and staff that the
chances of receiving the grant are slim, but not withstanding, the project team has put
much effort into the application.
Mr. Fox stated that some issues began to arise at the last meeting in regards to aesthetics
on the interchange and transit facility. He explained that he is recommending that certain
percentage of the $8 million that Woodburn is contributing be set aside for Woodburn's
aesthetic upgrades, with ODOT's technical approval. Mr. Fox stated that he is planning
to hold individual meetings over a one to three day period with a team of designers and
engineers from the interchange project and business owners affected by the I-5
interchange project, to bring them up to date on project and discuss access to their
property. He stated that he would report the results at a future briefing with Council and
would have a general public meeting to discuss a draft traffic control plan. The Public
Involvement Plan is currently posted on the Woodburn Interchange website. ODOT is
also currently working on the design and right of way acquisition.
City Administrator Derickson inquired whether the City could begin to procure financing
for the bond sale before the conditions of the legislation are met.
Mr. Fox explained that the City must meet both conditions of the legislation before
preparing for the bond sale.
Councilor McCallum inquired of the timeline for the individual meetings with business
owners and thanked Mr. Fox for meeting with them one-on-one. He also stated that on a
recent trip to Washington DC he was amazed at the support for this project that was given
by the State's senator offices, in particular, Congressman Kurt Schrader.
Mr. Fox stated that the individual meetings will be scheduled for late October or early
November. One of the primary selection criteria for the TIGER Grant is whether the
community is an economically distressed area as defined by the 1966 Public Works Act,
which Woodburn is. The other selection criteria is whether the project could be
completed by the end of 2012, which cannot be done. He explained in the application,
however, that the funds could be obligated by 2012. Mr. Fox stated that although he
worked on the project schedule, he is unable to say how much the project can be
accelerated since there are a number of major unknowns, such as the extent of
underground utilities.
Mr. Fox updated Council and staff on the transit facility. The transit facility is officially a
part of the I-5 project which he explained worked to ODOT's advantage in the TIGER
Grant application, since it is an innovative, multi-modal project. The scope of the transit
facility intersection has been expanded to include interim improvements to the Evergreen
Street intersection which will most likely delay the proj ect several months. Mr. Fox
stated that a cooperative improvement agreement is currently on hold until storm water
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research is completed but should be ready for the City Administrator's approval soon.
The Broughton to Park Avenue project is ongoing and a meeting with the environmental
regulators is scheduled for November. The traffic model update on traffic projections for
Highway 214 to just east of the intersection has been completed, and the basic alignment
has been well set by the design speed and constraints.
Councilor Cox asked for clarification of a potential 4(f).
Mr. Fox explained that 4(1} is an environmental permit category concerning parks and
public properties that would require a mini environmental impact statement.
Councilor Cox expressed his appreciation to Mr. Fox for his outstanding communication
to the Council and staff.
Mayor Figley thanked Mr. Fox on behalf of the Council.
3200 BUSINESS FROM THE PUBLIC.
Peppi Kosikowski, Harrison Street, Woodburn. Mrs. Kosikowski spoke in regards to the
opening of 5~' Street. She stated that she and her neighbors feel the City has been
discussing the opening of the street without talking to the property owners along the
street, and provided letters and petitions to the Council for their review and consideration.
3430 CONSENT AGENDA.
A) approve the Council workshop minutes of August 31, 2009;
B) approve the Council minutes of September 14, 2009;
C) accept the reports on Claims for the months of June, July, and August 2009; and
D) approve Carl Myers, Bar #75273, to serve as Pro-Tem Judge for a period of two years.
SCHMIDT/LONERGAN...adopt the consent agenda as presented. The motion passed
unanimously.
3466 COUNCIL BILL N0.2801- RESOLUTION TO AMEND THE CLEAN WATER
STATE REVOLVING FUND LOAN AGREEMENT N0. R98414 WITH THE
STATE OF OREGON.
Councilor McCallum introduced Council Bill No. 2801. Recorder Tennant read the bill
by title only since there were no objections from the Council.
City Administrator Derickson explained that expanding the loan will allow the City to
take advantage of very low interest rates but will require the City to increase its rates
9.5% to 16% in July 2010 to handle the debt services associated with the loan.
Councilor Cox stated that the City entered into an agreement with the State in 2007. He
explained that if the City did not come into compliance with the Clean Water Act the
consequences would be a lot worse.
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City Administrator Derickson stated that the Clean Water Act is an unfunded mandate
that is enforced upon the city and recommended moving forward with this amendment to
stay in compliance, but reminded Council that there will be financial consequences down
the road.
On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared
Council Bill No. 2801 duly passed.
3973 COUNCIL BILL N0.2802 -RESOLUTION ENTERING INTO AGREEMENT
WITH THE OREGON BUSINESS DEVELOPMENT FOR A FORGIVABLE
LOAN UNDER THE STATE REVOLVING. FUND LOAN AND THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009 FOR WATER SYSTEM
CONSOLIDATION PROJECT (Project No. SZ9011).
Council Bill No. 2802 was introduced by Councilor McCallum. The bill was read by title
only since there were no objections from the Council.
Councilor Cox stated that no cost would be incurred by the City if this project is followed
under guidelines, and the City complies with its obligations.
On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared
Council Bill No. 2802 duly passed.
4195 PROFESSIONAL SERVICES CONTRACT AWARD MURRY SMITH &
ASSOCIATES FOR DESIGN AND CONSTRUCTION ENGINEERING OF THE
WATER CONSOLIDATION PROJECT.
LONERGAN/MCCALLUM... That the City Council, acting in its capacity as the City
Contract Review Board, award the professional services contract for design and
construction engineering of the Water Consolidation Project to firm Murray Smith &
Associates for a fee of $465,856.00.
The motion passed unanimously.
4220 COUNCIL UPDATE ON MIDGE FLY PRESENCE IN WATER SUPPLY
SYSTEM AND CONTINUATION OF DIALOG ON NEED FOR
CHLORINATION.
Public Works Director Brown updated Council on the recent midge fly incident which
has created public concern. The City has taken the position to be fully straightforward
with the public and acknowledge that there is a problem. Currently, Public Works has
been flushing approximately 40-50 million gallons of water each year to keep the
presence of the midge fly to a minimum, and the electrical cost to pump the water is well
over $17,000 a year plus staff time. It is a big effort to keep the presence of midge fly in
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the water system to a minimum. He explained that the city has a very good water
treatment system and when the water leaves the treatment plant, it is disinfected, pure,
and virus free. The issue arises when the water is distributed through 9$ miles of water
mains that are in various levels of condition. The treatment has no residual capacity once
it leaves the plant. The long term solution to eradicate the midge flies is to eliminate the
bio-film within the piping system, which is the food source for the midge fly. He stated
that he is promoting chlorination primarily for public health issues and secondarily for the
midge fly issue. As of now, the city is under no regulatory requirement to chlorinate.
Mayor Figley expressed her appreciation for the information that has been shared.
Councilor McCallum expressed concerns over adding anything to the water and
questioned what is in the works with Environmental Protection Agency (EPA) and
Department of Environmental Quality (DEQ).
Public Works Director Brown stated that the quality of groundwater is not what it used to
be. The EPA is looking at the Groundwater Rule as an issue associated with the bacterial
and viral contamination of groundwater. The EPA's understanding is that not
chlorinating groundwater does not provide sufficient protection. Currently, the City
removes mineral contamination through potassium permanganate, a very powerful and
effective oxidizer that does a great j ob at disinfecting as it removes the mineral content
from the water. Only chlorine provides residual capacity in the system. The EPA does
warn, however, about the byproducts created through the chlorination process.
Councilor Pugh inquired of the cost to have a chlorination system installed.
Public Works Director Brown stated that it would cost an estimated $740,000 to modify
the city's current system to allow for the ionization process.
Councilor Pugh suggested that the decision to chlorinate go to the voters since it is such a
big issue that affects the entire city. He would like the voters to be provided complete
information, which would include the cost and what exactly would be done.
Councilor McCallum stated that the voters elected them to their position to make the
difficult decisions and it is Council's responsibility to get feedback from their
constituents.
Councilor Pugh agreed with Councilor McCallum but also feels that there is a time when
a decision is large enough that it should be given a more total and complete address.
Councilor McCallum stated that Council makes difficult decisions on a regular basis.
Council Pugh stated that this issue has a personal aspect as well, which is one of the main
reasons that he is leaning strongly towards allowing the public to express their feelings.
Councilor Lonergan stated that he is leaning towards making a decision without a vote.
The Council was elected to make difficult decisions and be leaders. He asked Public
Works Director Brown if there were available construction funds to cover the cost of this
project and its maintenance.
Public Works Director Brown stated that there are funds in the reserve and construction
fund that would cover both the cost and maintenance. Currently, the City is expending a
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tremendous amount of staff time performing maintenance that would be reduced through
the chlorination process. There are some significant cost advantages to chlorination that
would buffer the increase in cost.
Councilor McCallum inquired of the timeframe for installation.
Public Works Director Brown stated that it would take approximately six months to put a
contract in place and approximately three months for construction activity.
Councilor Lonergan asked if there was aone-time super cleanout that we could try.
Public Works Director Brown stated that if the City decided to chlorinate, it would have
to super chlorinate to flush the system to rid it of the bio-film.
Councilor Cox stated that his inclination is not to proceed with chlorination. He believes
it is a Council decision and the public voted them in office to do the research and study
the issues in detail. The voters have the right to do a referendum if they disagree with
Council's decision. He believes chlorination is unnecessary and the expenditure of
$750,000 has not been justified. The ongoing cost of operation is unknown. He
reminded the Council that when the new treatment plan went into effect there was an
outbreak of e-coll. The consensus was that the outbreak was caused by the contractor
getting foreign material into the lines in the process of constructing the new system.
Once the system was flushed and the system was sanitized the problem disappeared and
has not happened again. There have been two primary instances with the midge fly, and
although they are not a public health threat, they are something the City wants to get rid
of. However, chlorination may not be the best way to eradicate the midge fly. One article
that Councilor Cox shared explained that chlorination is an ineffective method to remove
the midge fly larvae unless copper sulfate is also added.
Councilor Cox stated that midge fly larvae is quite resistant to chlorine treatment and
chlorine only destroys the habitat that they survive in. He explained the lifecycle of the
midge fly and hypothesized that the city's repeated infestations are not due to procreation
in the pipes but due to an outside source where the midge flies are entering in from. The
midge flies may be entering through our reservoirs and treatment system due to
ineffective screening. He feels that staff should look more closely for other sources that
would prevent the midge flies from entering the system. He also stated that chlorination
adds a chemical to the water that some people have serious sensitivities to. The EPA and
Oregon Health Department do not require chlorination and the City should only
chlorinate if and when it is required. The city has a great water system and chlorination
maybe unnecessary. It is an expense that will ultimately result as a function of the water
rates.
Councilor Schmidt stated that he would prefer not to chlorinate although he is not
opposed. From his experience replacing portions of waterline and observing the bio-film,
he questioned how drinkable the water was that passed through the pipes. He also stated
that people with a chlorine allergy can install a system at their home that can remove the
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chlorine from their water and reminded Council how easy it is for an aquifer to become
contaminated. Although he would prefer not to chlorinate, he sees a benefit and would
vote to chlorinate.
0672 Councilor Lonergan stated that water is something that we do not mess with and
questioned the reasoning behind the City's belief that it should not chlorinate. He
expressed concern over contamination and requested more information on why we are
one of the few cities to not require chlorination.
Public Works Director Brown stated that the City has not done everything that it can do
as a city of 23,000 people to protect its water system. Woodburn is a large community
that faces illegal taps and the system is very vulnerable. Chlorination is an effective
buffer to protect against the human event, such as e-coli which has been found in our
system and has been flushed out. Staff acknowledges that there was a design problem
with the system, and although it has been corrected, believes it to be the initial source of
the midge fly. In his professional opinion, the City does not have a source identified that
would be creating this problem and believes the initial infestation most likely took place
in 2005. He explained that the midge flies are in the water system all the time and when
the population expands, there is just a greater level. of detection. Senior Estates is now
facing turbidity issues because of the flushing and the substances in the pipes. The
northwest section of the community seems to have been hit the worst because the area's
predominant service line is concrete lined and allows bio-film to build onto it.
Councilor Schmidt informed the Council that there may also be wooden water lines being
used throughout the city.
Councilor McCallum stated that safe water is paramount but he does have a number of
questions dealing with the design. He expressed concern over the possibility of
contamination, the midge fly, and the costs associated with chlorination.
Public Works Director Brown stated that he is not an expert on this issue, but the pros
and cons to chlorination are well published and can be found on the EPA's website. He
also stated that he is very confidant that if there is another e-coli event in Woodburn, the
Department of Human Services will mandate the City to chlorinate since the City is
already on notice.
Mayor Figley stated that in general she is against additives but had changed her mind
after the e-coli outbreak in 2005. Not having the chlorination system available limited the
City's options in rectifying the problem and at that time, the consensus of the Council
was to let the system work as designed. The system has been working as designed and is
having recurrent midge fly infestations and an outbreak of crustaceans. As designed, the
system is too big to function without some level of residual protection and she stated that
she is concerned about being derelict in public safety.
Public Works Director Brown stated that receiving second and third opinions is very
important since it deals with public health and is also a monetary decision. He can
arrange to bring in experts to speak with Council on both sides of the issue.
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There was discussion amongst Councilor McCallum and Councilor Schmidt in regards to
the landfill just north of Woodburn and its contamination.
17b7 City Administrator Derickson stated that he will work with Public Works Director Brown
to address the issues brought up at this meeting and develop more information so Council
can continue this dialog in the following months.
Councilor Pugh asked staff to keep in mind that this is a personal issue as well and some
individuals have serious sensitivities to chlorine.
Mayor Figley stated that chemical sensitivity is a serious matter as is exposing the public
to e-soli.
Public Works Director Brown stated that staff has looked very closely at the de-
chlorinationconcept and is not disregarding civic concern.
Councilor Cox stated that the potassium permanganate that the City currently uses to
remove iron is also an effective disinfectant. The risk of contamination arises after the
water leaves the treatment plant and an outside contaminant is allowed to enter the
system. There is an honest concern for public health.
2019 CITY ADMINISTRATOR'S REPaRT.
A) City Administrator Derickson introduced Christina Shearer as Interim Finance Director.
B) Captain Blevins presented Councilor Cox with a Police Academy Certificate of
Completion.
C) League of Oregon Cities Conference: Administrator Derickson will be attending on
October 1- 3, 2009. The City has been nominated for the Good Governance Award.
Mayor Figley and Councilor McCallum will also be in attendance.
D) Assistant City Administrator Stevens will be attending an advanced Spanish class and
will not be at council meetings over the next couple of months.
E) Administrator Derickson invited the public to view the City's updated website.
2307 MAYOR AND COUNCIL REPORTS.
Councilor McCallum reiterated the good job that Mayor Figley & City Administrator
Derickson did spreading the word to federal legislators on the interchange project.
Councilor Cox inquired of the costs associated with the Mexican Fiesta.
City Administrator Derickson stated that the Police Department is currently calculating
straight time.
Mayor Figley stated that the Oregon Peace Officers Association will be honoring several
members of the Woodburn Police Department at their annual banquet. Nick Wilson will
be receiving a metal of honor and life saving award, and John Mikkola, Craig
Halupowski, and Rick Puente will be receiving medals of honor. Chief Scott Russell and
Captain Tom Tennant will honored with purple hearts.
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2540 ADJOURNMENT.
MCCALLUM/PUGH...meeting be adjourned. The motion passed unanimously.
The meeting adjourned at 9:12 p.m..
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APPROVED ~ ~ .:~;::;~.
ti
..KATHRYN FIGLEY~ MAYOR'S
ATTEST
Mary T nnant, Recorder
City of Woodburn, Oregon
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