CITY OF MILTON-FREEWATER GOVERNING BODY Steven Patten At Large, Position 1 Steve Irving At Large, Position 2 Edwin E. Chesnut At Large, Position 3
CITY OF MILTON-FREEWATER CITY COUNCIL MINUTES
Lewis S. Key Orrin Lyon (CL President) Bradley J. Humbert Jeff Anliker
Mayor Ward 1 Ward 2 Ward 3
September 14, 2015
The Council of the City of Milton-Freewater met Monday, September 14, 2015 at 7:00 p.m. in the Albee Room of the Library, 8 SW 8th Avenue, Milton-Freewater, Oregon. The following City Council members were present: Mayor Lewis Key, Councilors Steven Patten, Ed Chesnut, Council President Orrin Lyon, Brad Humbert, Steve Irving and Jeff Anliker. Staff members present were: City Manager Linda Hall, City Recorder Leanne Steadman, Public Works Superintendent Dave Bradshaw, Community Development Supervisor Mike Watkins, City Planner Gina Hartzheim, Public Works Technician Brian Steadman, Human Resource Officer Teresa Dutcher, Library Director Erin Wells, Library Associate Lillie Schmidt, Accounts Payable Clerk Tatia Oliver, Engineering Technician Tina Kain, Payroll Clerk Laurie Bubar, Police Officer James Farr and Police Officer Anthony Martinez. Citizens present were: Suni Danforth, Cessandra Bishop, Tammy Seaquist, Ann Jolly, Jane Machnik, Charles Danforth, Antonio Gonzalez, Jeanne Stanan, Jenny Arnerich, Mike Arnerich, Allen Key, Jean Sherman, Merle Sherman, Dr. Tillie MakePeace, John Ferrise, Pam Hays, Kim Garcia, Catherine Anderson, Stan Croghan, Wes Koklich, Charlotte Paine, Don Paine, Verl Pressnall, Tara Patten, Wyatt Patten, Ronda Deibele, Georgia Sloan, Deborah Barcroft, Wade Bettis, Sally Davis, Corey Davis, Valerie Scott and Jerry Richwine. Representing the news media was Sherrie Widmer of the Valley Herald and Alfred Diaz of the Walla Walla Union-Bulletin. CONSENT CALENDAR ITEMS: The consent calendar items consisted of: Council Minutes from August 10, 2015 Accounts payables from August 5, 2015 through August 17, 2015 Accounts payables from August 18, 2015 through September 8, 2015 Liquor License Application for Change of Ownership for the M-F Supper Club Resolution No. 2305, Authorizing Employees to make Transfers to Investment Account and Local Government Pool Councilor Chesnut motioned to adopt the consent calendar items. Councilor Humbert seconded the motion which passed unanimously. PRESENTATION ITEMS: RECOGNITION TO LAURIE BUBAR, PAYROLL CLERK AS THE SEPTEMBER EMPLOYEE OF THE MONTH Councilor Patten, stated on behalf of the Mayor and City Council, it was his pleasure to recognize Laurie Bubar as the September employee of the month. Councilor Patten relayed the nomination. Laurie started with the city in November of 2007 as a cashier in the Finance Department and has been promoted three times in the eight years she has worked with us. That is not surprising in the least, as Laurie proves herself absolutely invaluable in every position she takes on. Laurie is 9/14/2015
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known for her ability to catch the tiniest of details, yet not miss the big picture. She does an excellent job as our payroll clerk, never missing a deadline, and delivering our paychecks correctly each time. Laurie is our “early starter”, opening up City Hall offices bright and early for the start of our work days and waiting on our early bird customers. She has a killer sense of humor and always seems to know when a teammate needs a bit of cheer and she delivers that too. Thank you Laurie for all you do for the City, its citizens and your co-workers. Congratulations on being September’s Employee of the Month. CITIZEN CONCERN – PASTOR, DR. TILLIE MAKEPEACE REGARDING THE RED ZONE Mayor Key called for Pastor, Dr. Tillie MakePeace of the Wesley United Methodist Church to please approach the podium to present her concern. Pastor, Dr. Tillie MakePeace stated she submitted a letter to the council, which was submitted in their council packet, and she asked that it be made part of the permanent record. She announced there was a correction to the email address she provided at the bottom of the letter, it should have read “.net” instead of “.com”. She then shared her concerns with the adult entertainment business that recently opened in town, “Red Zone”. Mayor Key stated that staff has consulted with the City Attorney to gain information on what the law allows when it comes to adult businesses. The Oregon’s constitution has an extremely protective free speech clause and dancing is considered a form of expression. He stated if there were other things going on at that business other than what the business license allowed then that could be addressed. PRESENTATION ON GRANT FOR REPLACING DUG OUTS AND UPGRADING LIGHTS AT MCRAE IRELAND BALLFIELD Stan Croghan gave a brief presentation to council regarding phase two of the upgrade to McRae Ireland ballfield. They will be upgrading the lights and dugouts. The total estimated project cost is $168,000. They have various grants, donations and in-kind donations for all the project cost except for $34,000 which they are trying to raise. Manager Hall stated the ballfield is on city property and felt there should be a good partnership with the volunteer efforts of upgrading the McRae Ireland field. They have done a great job with the first phase and she has no doubt that they will complete the second phase. She commended them for all their hours and work on the field and gaining as much grant money to help fund the project as they have. Councilor Humbert thanked Mr. Croghan for stepping up and taking charge of the project. He thanked him for all the volunteer hours and he applauded his effort. REQUEST FROM MILTON-FREEWATER DOWNTOWN ALLIANCE FOR COMMUNITY SUPPORT FUNDS FOR THE MAKE A DIFFERENCE DAY City Manager Linda Hall stated she met with Randy Grant, Executive Director of the MiltonFreewater Downtown Alliance (MFDA) and the projects for Make a Difference Day will not be decided on by the community until September 25, 2015, which is when the first community meeting is scheduled. She stated she would keep council updated. UPDATE ON THE RECENT SUMMER READING PROGRAM AT THE LIBRARY Library Director Erin Wells and Library Associate Lillie Schmidt gave an update on how the recent summer reading program went. The theme was, “Every Hero Has a Story”. Ms. Wells stated the summer reading program was awarded a $1,000 grant from the Friends of the Library 9/14/2015
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which helped with the supplies and they were able to give out prizes at the end of the program which the children had to earn by participating in the program, going to various programs at the library and credit for reading hours. They shared the statistics of how many children participated and that they plan to add a class next year geared toward teenagers as well. The summer reading program is eight weeks long and both Ms. Wells and Ms. Schmidt thought last summer was a great success. Councilor Anliker congratulated them on a successful summer reading program and stated he liked the theme. BUSINESS ITEMS: BID AWARD – CONTRACT 260, ONE NEW BUCKET TRUCK, V-179 Public Works Superintendent Dave Bradshaw reported staff advertised, accepted and opened sealed bids for the purchase of one new bucket truck. There were five bids received, those being from Altec Industries, Inc., Utility Fleet Sales, Titan Truck, Versalift Northwest and Terex. The new bucket truck is planned to replace V-111 which is a 1999 Ford F450 with a gas V10 engine and has approximately 109,048 miles. The bids came in under budget which was $120,000. Staff’s recommendation was to award the bid to Titan Truck Equipment & Accessories as they were the apparent low bidder with the trade-in vehicle. A discussion ensued regarding what type of cab the new truck would have and what equipment it would be delivered with. Councilor Humbert said he didn’t recognize the business name, Titan Truck Equipment & Accessories, like he did the other bidders. He asked if they have about the same warranties as the other bidders he recognized. Mr. Bradshaw stated he thought the warranties were comparable and he had consulted with lead mechanic Jim Olsen. Councilor Anliker stated he felt that the trade in value of $7,300 seemed low. Mr. Bradshaw said he checked into what the vehicle value was and it was around that range. Councilor Humbert motioned to award Contract 260, One New Bucket Truck, V-179 to Titan Truck Equipment & Accessories in the amount of $94,815, less the trade-in of V-111 in the amount of $7,300 for a total bid award amount of $87,515. Councilor Anliker seconded the motion which passed unanimously. BID AWARD – CONTRACT 261, ONE NEW POLICE ALL-WHEEL DRIVE UTILITY INTERCEPTOR, V-181 Mr. Bradshaw reported staff advertised, accepted and opened sealed bids for the purchase of one new police all-wheel drive utility interceptor. There was one bid received from Power Ford Lincoln Mercury of Newport, Oregon. The new all-wheel drive utility interceptor vehicle is planned to replace the 1998 Chevrolet Lumina unmarked sedan. The new vehicle will be an allwheel drive which will be better for inclement weather and it will be black and white in color like the last police sedan that was purchased. The bids came in under budget which was $50,000. This will allow funding for the required equipment to be added. Staff’s recommendation was to award the bid to Power Ford Lincoln Mercury. Councilor Patten asked if there was a specific reason why the bid call was for a sport utility vehicle (SUV) rather than a sedan. 9/14/2015
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Mr. Bradshaw said it would handle better in inclement weather and for when the police have to go off-road for reasons of pursuing a suspect. Manager Hall said unfortunately it’s becoming more common for suspects to run from the police than to pull over. Councilor Irving commended staff for coming in under budgeted on both of the new vehicles. He stated between the new bucket truck and new police vehicle the city was under budget by $55,000. Councilor Patten motioned to award Contract 261, One New Police All-Wheel Drive Utility Interceptor, V-181 to Power Ford Lincoln Mercury in the amount of $27,493, as bid. Councilor Humbert seconded the motion which passed unanimously. BID AWARD – CONTRACT 263, STORMWATER DITCH PIPING MATERIALS Mr. Bradshaw reported staff advertised, accepted and opened sealed bids for materials for the stormwater ditch piping project. Mr. Bradshaw explained that staff was notified by the Environmental Protection Agency (EPA) that they had obtained a grant to fund the engineering and development of a Stormwater Master Plan and Stormwater Infrastructure Improvements. The Stormwater Master Plan has been completed and submitted to the Oregon Department of Environmental Quality (DEQ) and all drywells have been decommissioned. The piping of Milton Ditch for stormwater management from SW 10th Avenue to the Wastewater Treatment plant at 640 County Road is in the final stage. Staff determined an additional open ditch area along the Milton-Freewater Golf Course that was not originally planned to be piped but staff felt it needed to be since it has had problems with debris piling up in it. Staff was successful in being granted a six month extension to the completion date from June 20, 2015 to December 31, 2015. Councilor Humbert asked if the entire ditch along the golf course was going to be piped. Mr. Bradshaw replied not all of it will be piped but they will also be installing a grate on a portion of it. Councilor Patten asked if the city obtained an easement for the ditching. Mr. Bradshaw stated there were easements for areas of where the pipe crosses private property. Councilor Chesnut motioned to award unit prices as bid for the 2015 Stormwater Ditch Piping Materials, Contract 263 to Contech Engineered Solutions, as they were the apparent low bidder. Councilor Humbert seconded the motion which passed unanimously. RESOLUTION NO. 2306, AUTHORIZING SIGNATURE FOR FEDERAL TRANSIT ADMINISTRATION AGREEMENT TO PROVIDE 31% OF CONSTRUCTION FUNDING FOR AN ADA ACCESSIBLE ELEVATOR FOR CITY HALL Human Resource Officer Teresa Dutcher and Public Works Technician Brian Steadman presented a grant from the Federal Transit Administration (FTA) for the purpose of constructing an ADA Accessible Elevator for City Hall agreeing to provide thirty-one percent (31%) of the total project cost. Ms. Dutcher said while discussing funding sources for public transportation projects, City Manager Linda Hall asked her to research opportunities with the FTA to help fund an ADA accessible elevator at city hall making the transportation headquarters fully accessible. Public Works Technician Brian Steadman had worked on the elevator project a year or so ago so the information was readily available of estimates and description for an elevator. Ms. Dutcher passed along the project materials to FTA Region 10 Representative John Witmer who approved the grant 9/14/2015
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application provided it passed approval by all federal, state, and local agencies/departments associated with the grant. The total project cost is estimated at $612,904 and FTA is providing thirty-one (31%) of the funds, which is $190,000. The grant is $171,000 with a match of $19,000. The additional State Transportation Fund (STF) Formula 1 & Formula 2, along with in-kind match will make up the $19,000 needed. Councilor Anliker said thirty-one percent (31%) is a good match but asked where the remaining sixty-nine percent (69%) was going to come from and what if the remaining balance isn’t raised. He stated he was also concerned with the location of where the elevator is proposed to be placed. He said to him there doesn’t seem to be adequate parking on the south side of the city hall building and it would be too hard for citizens to get to the elevator. Ms. Dutcher stated when the current FTA Region 10 Representative Jeremy Boreggo did a site visit he concurred with the project location of the south side of city hall. He and Ms. Dutcher discussed that the southwest corner was a good, safe location for wheelchairs and people with walkers to gain access to the elevator since they would not have to step up on a curb. There might have to be some slight changes to handicap parking in that area but they both felt it was obtainable. A discussion ensued regarding parking and the number of people using the elevator. Manager Hall stated that the city hall building was 105 years old this month. That in itself was a challenge to keep the esthetics of the building but also make it ADA accessible. One of the deciding factors of proposing the elevator to be placed in between city hall and library was from a safety aspect from the engineer, Opp & Siebold. Manager Hall stated while it may not be perfect to everyone’s perspective it was the best set of circumstances that staff could get the make the building ADA accessible. Manager Hall said there is two years for the city to find the match and if the remaining 69% was not able to be raised, staff would turn the grant back over. Councilor Anliker said he was for the project he is still concerned with the parking situation and said that needs to be looked at again. A discussion ensued again about the parking and potential lack thereof. Councilor Chesnut asked if the elevator would provide access to all floors of the city hall building. Manager Hall said yes which included the police department. Councilor Patten motioned to adopt Resolution No. 2306, Authorizing signature for FTA Agreement No. OR-90-X181-00 in the amount of $171,000 to provide 31% of construction funding for an ADA Accessible Elevator for City Hall. Councilor Chesnut seconded the motion which passed unanimously. CONSIDERATION OF ORDINANCES – REGARDING MEDICAL AND RECREATIONAL MARIJUANA REGULATIONS OR BAN City Planner Gina Hartzheim reported there were four ordinances up for consideration regarding medical and recreational regulations which council directed staff to research at their last meeting and discussion on the subject. The options were for (1) Regulation of medical marijuana dispensaries; (2) Banning early sales of recreational marijuana at medical marijuana dispensaries; (3) Imposing a tax on recreational marijuana; (4) Banning marijuana processing sites, medical marijuana dispensaries, recreational marijuana producers, recreational marijuana wholesales and/or recreational marijuana retailers. 9/14/2015
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Ms. Hartzheim stated the ordinances were formed after researching several different cities that already have regulations in affect regarding the medical marijuana portion and as far as the recreational marijuana there are rules still being established to regulate that portion. Oregon Liquor Control Commission will be regulating the recreational portion of marijuana and they are projecting to have regulations developed by the end of the year. The Oregon Health Authority is the regulating authority for the medical marijuana portion. The League of Oregon Cities has some model ordinances they have provided to cities as a result of the most recent legislative changes. Ms. Hartzheim explained there were individual staff reports for each ordinance option but that she would explain in detail the specific ones that council was interested in. Manager Hall stated there were some questions from Councilor Patten and Councilor Chesnut that staff was presented with prior to the meeting that she suggested going over for the sake of the rest of the council. She presented Councilor Patten’s questions. One of his questions was regarding the ordinance Regulating Medical Marijuana Dispensaries and related to the Operator’s License and Dispenser’s Permit fees. Staff’s response was that the fee was completely at the discretion of the council and if this was the ordinance that council decided on then the wording could be mored detailed and as specific as they wanted. She explained the difference in staff’s recommendation for the fees was due to the initial background investigation being more in depth than a renewal since the initial investigation would have had already been performed. The next question also was regarding the same ordinance and he asked whether it was standard language to put regulation on a dispensary to use an air filtration and ventilation system for the odor. Staff’s response was that the language was modeled after ordinances in Ashland, Central Point and specifically Pendleton and Kaiser. She stated to her knowledge it was not mandated by the State but seemed to be common among the ordinances that allow such business. Another question was asked why marijuana businesses would not be allowed to have security bars/grates on their windows or doors. Staff’s response was that it was based upon esthetics and design standards adopted in the zoning code. Councilor Patten asked if there was a time limit on when the 3% tax can be imposed, if it could go into effect prior to the November 2016 election and if there were any limitations on how this tax could be changed. Staff’s response was that the 3% tax cannot be put into effect until after the November 2016 election and at this point, it couldn’t be increased more than the 3% as it’s controlled by the State Legislature. The reason it has to go before voters is due to Measures 49 and 50 that mandated the cities could not impose new taxes without a vote of the people authorizing them. His last comment was that he believed the marijuana family name should be Cannabaceae not Moraceae to be consistent in all the ordinances. Staff agreed with Councilor Patten’s suggestion. Councilor Anliker referred to the Local Focus that the League of Oregon Cities distributes monthly. They had an article in last months publication on how the taxes would be split and what percentage the state and cities would get. A discussion ensued. Councilor Patten said he understood that there would be a state tax and the 3% would be a local tax. Manager Hall replied that was correct and the city would retain the 3% if the voters approved it. Councilor Patten asked if the council banned marijuana now, could the ban be lifted in 5 (five) years and would the city have the option to tax it then. He said he realizes the city would not be allowed to have any state sharing but asked if the city would be able to impose the 3% local tax. 9/14/2015
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A discussion ensued. The deadline to ban marijuana is December 24, 2015 and Manager Hall said the council could lift the ban later on but it would require further research whether or not the 3% local tax could be imposed at that time. Councilor Anliker stated that the City of Milton-Freewater voters voted down the passing of Measure 91, recreational marijuana, by 62.3% and said he highly doubted that the 3% tax would be passed by the voters. Councilor Chesnut said continued discussion may change things because if 1 (one) person out of 10 (ten) changed their mind then the vote would be a tie. Councilor Anliker stated that you couldn’t ban medical marijuana or ban personal use of marijuana, by banning dispensaries in Milton-Freewater wasn’t going to stop people from using marijuana and they are allowed to grow 4 (four) plants on their own property. He said it boiled down to you’re not going to stop people from using marijuana but whether the city was going to back the sale and dispensary of marijuana in city limits. Councilor Humbert said whether the city allows or doesn’t allow marijuana businesses in town was not going to stop people from using marijuana. He felt it came down to whether the city wanted to tax it or not. Councilor Anliker said he was elected by the constituents and in the last election the voters said no so that’s where he is with it because he has to serve the public. Councilor Chesnut said the tough decisions are when are you just rubber stamping what the community says or are you here to lead. He stated he has read many letters to the editor about banning marijuana which seem to come from the presumption that life is rosy now and if marijuana sales were to be approved, then it was opening up a can of worms. He referred to multiple studies he has read that have shown that teenagers themselves claim it was easier to get marijuana then it was alcohol. He said he didn’t know if that was true but multiple studies showed that was the response of teenagers. He stated that to him it confirmed that alcohol regulation was working in one form or another and banning marijuana is not working. He restated that it goes back to the tough decision whether to rubber stamp the last vote of the people or does he lead because he has done research and is not operating from just emotion. He opposes the use of marijuana but he stated the ban that we’ve had has been a failed experiment. He said if the 3% tax was being proposed to be put on the ballot then that would presume that the council was moving towards an ordinance that allows sales of marijuana and if the vote of the council is to ban the sales of marijuana then the 3% tax as a moot point. Ms. Hartzheim reviewed Councilor Chesnut questions that staff received prior to the meeting for the rest of the council. He requested a map showing which parts of the zoning code C-1, C-2 and Downtown Business zones were far enough from schools, parks, library, etc. such that a marijuana business could locate. Ms. Hartzheim compiled such a map and passed a copy out to the council as well as having a large map for audience viewing of where such a business could locate. The locations are very limited once the parameters where included. His first question was regarding the Medical Marijuana Dispensaries and asked how the business hours of 11:00 a.m. to 9:00 p.m. were established. Staff’s response was that the hours corresponded with the local liquor store hours. Ms. Hartzheim said she noted a typo correction that Councilor Chesnut found talking about objectionable odors, not orders in one of the ordinances. His next question had to do with delivery of goods and the testing of pesticides, mold or mildew and what the procedure would be if it tested positive for any of these. Councilor Chesnut’s comment was why would the city be getting in the middle of the delivery transaction to the business. Staff’s response was this language was taken 9/14/2015
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from another city’s ordinance and it may not be the correct language for the city of MiltonFreewater as Councilor Chesnut pointed out that the city would seem to be getting into the middle of a business transaction so if council chose to go with that ordinance then the language could be removed or amended. Another question was regarding the section which requires secure disposal of tainted goods. Staff’s comment was that we would not want that in the trash bins for access but is not clearly defined of exactly what constitutes secure disposal and if council chose this ordinance then that would have to have some additional language to clearly define the procedure. The last question related to the authority to view or hear surveillance recordings, when available and Councilor Chesnut suggested dropping, “when available”, from the sentence. Staff agreed with his recommendation. Councilor Lyon said he read in the paper a while back where a study was done where recreational marijuana was allowed the incidence of fatal crashes increased by 10- 25%. Councilor Chesnut asked for clarification on the map of the limitation of the 200 feet from residentially zoned property. He asked if it was in the city code book, relating to liquor stores. Ms. Hartzheim replied that the 200 feet limitation was not in the code book and it was a new limitation. The state law has restrictions on medical marijuana dispensaries, recreational marijuana retail stores, and medical and recreational marijuana processors that process marijuana extracts cannot locate in a residential zone. Medical marijuana dispensaries and recreational marijuana retail stores neither can locate within 1,000 feet of certain public and private schools, unless the school is established after the marijuana facility. Medical marijuana dispensaries cannot locate within 1,000 feet of another dispensary and medical marijuana dispensaries cannot locate at a grow site. Ms. Hartzheim said there were approximately 7 or 8 parcels that meet the criteria after you plot the 1,000 foot distances and add the 200 foot buffer from residential zones. Councilor Humbert stated the 200 foot buffer did not work very well with the city zoning since it appeared the available parcels that were mapped were basically on the main thoroughfare. Councilor Lyon asked if the option of imposing a tax on recreational marijuana also included asking the voters to vote on marijuana. Ms. Hartzheim said that option only included the vote on whether or not to impose a 3% tax on recreational marijuana and would only need to be addressed if an ordinance was passed that would allow the sale of marijuana. Councilor Lyon stated according to federal law marijuana was still an illegal substance. He suggested sending the question back to the voters at the November 2016 election on whether or not to allow any type of sale of marijuana along with the 3% tax. Councilor Anliker stated the State of Oregon has essentially put this decision in the laps of the cities. He suggested putting the decision off to watch and see how other cities are regulating marijuana and see what works and what doesn’t work. Mayor Key announced there was a marijuana business opening up the next day in Walla Walla. Councilor Chesnut said the concern that he has is that the presumption is if the ban or prohibition of marijuana continues then life would be rosy and that simply was not the case. Councilor Humbert said he was not in favor of banning marijuana. He said it wasn’t right to him to pick, “winners and/or losers of businesses”. If the product of the business was a legal product, 9/14/2015
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which marijuana was passed as being legal in the State of Oregon by Measure 91, who is government to say which business gets to go into business. He said if that were the case then every store or establishment that sold alcohol and cigarettes would be shut down. He said no person is forced to support an individual business that they don’t want. Councilor Anliker said he was not in favor of backing recreational dispensaries and by allowing marijuana businesses in the city then that gives the impression that you approve the selling of marijuana. He was in favor of saying no now and yes later after the state has what works and doesn’t work. Councilor Humbert stated that was not the case and how he looked at it was that if you ban the business then you’re essentially saying no to the business because you don’t like the product they are going to sell and that was not right to him. A discussion ensued regarding the breakdown of how the state has proposed the tax revenues to be divided. Councilor Patten said he felt there would be a bigger problem with people growing marijuana in their back yard then to have a regulated dispensary. He said he saw the tax and allowing marijuana businesses as two separate issues. He said it wasn’t about the tax or money to him but said he could see the revenue as a benefit for the community and schools that could use more money. Councilor Humbert said it would have been a lot less complicated if the state would have just allowed marijuana to be sold in liquor stores since they are already regulated and established in most cities. Councilor Chesnut said it was mentioned at a previous meeting that the illegal transport across the Colorado state line into neighboring states increased some 400%. That seems to show evidence to him that people were willing to drive a couple hundred miles to buy marijuana legally than to buy it illegal in their own state. Manager Hall said staff was respectfully asking for direction since we are running up against some unmoving deadlines to take action. She gave the example of if the council was interested in banning then there is a very short timeline to do that since the ordinance needs to be effective and not just passed. There are ordinance advertising deadlines and a 30 day appeal period before they become effective. The deadline for such an ordinance must be enacted by December 24, 2015. She asked for direction to move towards one ordinance for staff to concentrate on to bring back for consideration. She stated it was a difficult decision and that she sympathized with the council but there needed to be a clear direction for staff. Councilor Chesnut asked if it was an option to refer the question back to the voters on whether to ban or not to ban marijuana on the November 2016 ballot. He stated there would obviously need to be a temporary ban placed in order to do that since the deadline to ban is December 24, 2015. Once the November 2016 election results were final then there would be direction from the voters whether to keep the ban or lift the ban and allow sales of marijuana. The question regarding the 3% tax would also be part of the question posed to the voters if the vote was in favor of lifting the ban. Councilor Humbert said if that is what is done then you run the risk of losing out on any state revenue and would only be eligible for the 3% local tax if the voters voted in favor of it. 9/14/2015
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Manager Hall said staff would have to research whether the city would be eligible for any state revenues if the city banned the sales prior to December 24, 2015 and then at the November 2016 election the results were to lift the ban. She said she felt if that was the case then once you went passed the deadline of December 24, 2015 with any type of ban then you forfeit your right to claim any state revenues from the sales of marijuana. The only tax that would be eligible with the vote of the people would be the 3% local tax. A discussion ensued regarding what decision the City of Hermiston just took. Councilor Chesnut said he read somewhere that cities could be eligible to a reduced portion of the state revenue sharing if a ban was placed and then lifted. Manager Hall said that was something that staff could get clarification on. Councilor Chesnut said it was very clear to him that there were some major questions and that it seemed appropriate to him that if it is an option to put the 3% tax on the ballot along with the approval of allowing marijuana sales in the city on the November 2016 general election. Councilor Patten said there would need to be an ordinance adopted to ban it right now to meet the deadline and then send it to the voters in November 2016. Manager Hall said it would be placing a ban on the sales of both medical and recreational marijuana until the issue is referred to the voters. She informed the council there could possibly be some election cost through Umatilla County associated with placing the items on the November 2016 ballot which could be significant. Councilor Chesnut motioned to direct staff to explore the possibilities for instating a ban on medical and recreational marijuana in the community subject to a vote of the people in November 2016 and put forth the 3% tax in the same election. Councilor Irving seconded the motion which passed by majority with Councilor Humbert being the dissenting vote. The council took a recess at 9:13 p.m. and reconvened at 9:20 p.m. RESOLUTION NO. 2307, AUTHORIZING A LOAN AND GRANT TO FINANCE WASTEWATER PLANT IMPROVEMENTS BY ENTERING INTO A FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE FINANCE AUTHORITY Manager Hall reviewed some history to this agenda item. She explained the sewer digester developed a structural crack which caused staff to seek engineering and analysis of the entire system. As a result of the comprehensive analysis and study, staff discovered several other elements in the sewer plant that needed upgraded or replaced. The engineering firm, Anderson Perry, gave staff a preliminary estimate for the cost of construction. The council had six options provided to them which they ultimately chose staff’s recommendation and the repair and replacement cost was estimated at approximately $3.305 million. At that time staff was able to secure a $2 million dollar grant with the remainder of $1.305 as a low interest loan. Staff advertised and accepted sealed bids for the project and when bids were opened they all came in much higher than the engineer’s original estimate by over $1 million dollars. Manager Hall said there could have been several reasons for the higher bids being just bad timing, several other large and lucrative projects going on or a situation where the construction companies had plenty of other work. The Infrastructure Finance Authority (IFA) representative Tawni Bean was positive about the changes to get more money for the project. Ms. Bean contacted her financial counterpart, IFA representative Dennis Knight and they were able to secure $750,000 in additional grant funds and the remaining $323,115 in a 1% interest loan for a 25 year term. Staff was very ecstatic and 9/14/2015
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surprised at being award more grant money as they thought the overage would have to come as an additional loan. Manager Hall said this agreement is an amendment to the original terms adding the additional $1,073,115 to the agreement. Councilor Patten motioned to adopt Resolution No. 2307, Resolution of the City of MiltonFreewater Authorizing a Financing Loan and Grant from the Water Fund by Entering into a Financing Contract with the Oregon Infrastructure Finance Authority. Councilor Irving seconded the motion which passed unanimously. RESOLUTION NO. 2308, AUTHORIZING LIEN TO BE RECORDED ON THE MORGAN INN FOR DELINQUENT TRANSIENT TAX Manager Hall stated the City has had a transient tax ordinance in effect since 2008. The ordinance requires guests staying in hotels, RV parks or any other temporary lodging facility for less than 30 consecutive days pay a transient tax of 7% of the rent charge for the room or space. The lodging facility is allowed to keep 5% of the 7% total rent collected to compensate any administrative costs they may incur to collect the tax. The facility is to report their occupancy earnings quarterly and the 7% transient tax is due at that time. The City has not received payment on transient taxes collected from the Morgan Inn since last November. Staff has received their quarterly report forms, with the exception of June 2015. The Morgan Inn has submitted July 2015 report and has paid the transient tax for that month. Staff has placed phone calls and letters have been sent to the owner of the Morgan Inn regarding the delinquent taxes and they have not been responded to thus far. The City attorney has been contacted who advised to proceed with the lien process. The total lien amount was calculated to be $9,977.03, without June 2015 since no report has been submitted. The transient tax dollars received are used to supplement economic development, community development and tourism projects, with the Milton-Freewater Chamber of Commerce receiving 25% of the taxes. Councilor Patten asked if the lien is placed, would it be hard to update the amount since there would be monthly interest accruing. Manager Hall replied it shouldn’t be that difficult to update the amount on the lien docket. Councilor Chesnut motion to adopt Resolution No. 2308, Resolution Authorizing a Lien to be Recorded on the Morgan Inn for Delinquent Transient Tax. Councilor Humbert seconded the motion which passed unanimously. OPPORTUNITY FOR CITIZENS TO APPROACH THE COUNCIL WITH ISSUES THAT WERE NOT ON THE AGENDA There were no other citizen comments. MANAGER’S REPORT Manager Hall announced that all the councilors with the exception of Councilor Humbert have indicated that they are planning to attend this year’s League of Oregon Cities (LOC) annual conference at the end of September. The LOC sends out a request for a voting delegate and an alternate be chosen to vote on matters at the conference. Councilor Anliker stated that the two council members that were nominated last year did a great job and he recommended appointing Mayor Key as the voting delegate and Councilor Chesnut as the alternate. There was a council consensus.
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Manager Hall stated the October council meeting date needed to be changed from October 12, 2015 to October 26, 2015. The council indicated the change to the meeting worked for all of them. COUNCIL ANNOUNCEMENTS Councilor Anliker said the council is a good board that works for the betterment of the community and respects each other while accomplishing that goal. There being no further business the meeting was adjourned at 9:35 p.m.
___________________________ Lewis S. Key, Mayor
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