HomeMy WebLinkAboutCAP041411CITY OF CENTRAL POINT
City Council Meeting Agenda
April 14, 2011
Next Res. 1285
Next Ord. No. 1950
I. REGULAR MEETING CALLED TO ORDER – 7:00 P.M.
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
IV. SPECIAL PRESENTATION
- Rogue Valley Council of Governments Annual Presentation
V. PUBLIC APPEARANCES
VI. CONSENT AGENDA
Pages 2 - 8 A. Approval of City Council Minutes for March 24, 2011
9 B. March 2011 MPO Summary
VII. ITEMS REMOVED FROM CONSENT AGENDA
VIII. PUBLIC HEARING, ORDINANCES, AND RESOLUTIONS
11 - 14 A. Public Hearing - First Reading Ordinance Declaring that
Blighted Areas Exist within the City of Central Point,
Recognizing the need for an Urban Renewal Agency to
Function in the City, and Adding Chapter 2.62 to the
Central Point Municipal Code Providing for the Exercise
of the Agency’s Powers by the Central Point Development
Commission (Clayton)
16 - 25 B. Public Hearing, Resolution No. ________, A Resolution of
the City of Central Point Setting Water Rates
(Adams/Clayton)
Central Point
City Hall
664-3321
City Council
Mayor
Hank Williams
Ward I
Bruce Dingler
Ward II
Kelly Geiger
Ward III
Matthew Stephenson
Ward IV
Allen Broderick
At Large
Carol Fischer
Kay Harrison
Administration
Phil Messina, City
Manager
Chris Clayton, Assistant
City Manager
Deanna Casey, City
Recorder
Community
Development
Department
Tom Humphrey, Director
Finance Department
Bev Adams, Director
Human Resources
Barb Robson, Director
Parks and Public Works
Department
Matt Samitore, Director
Jennifer Boardman,
Manager
Police Department
Jon Zeliff, Chief
IX. MAYOR’S REPORT
X. CITY ADMINISTRATOR’S REPORT
XI. COUNCIL REPORTS
XII. DEPARTMENT REPORTS
XIII. EXECUTIVE SESSION
The City Council may adjourn to executive session under the provisions of ORS 192.660.
Under the provisions of the Oregon Public Meetings Law, the proceedings of an executive
session are not for publication or broadcast.
XIV. ADJOURNMENT
Consent Agenda
Page 1 Council Agenda, April 14, 2011
CITY OF CENTRAL POINT City Council Meeting Minutes
March 24, 2011
I. REGULAR MEETING CALLED TO ORDER
Mayor Williams called the meeting to order at 7:00 p.m.
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL: Mayor: Hank Williams Council Members: Allen Broderick, Bruce Dingler, Carol
Fischer, Kelly Geiger, Kay Harrison, and Matthew
Stephenson were present.
Assistant City Manager Chris Clayton; City Attorney Paul
Nolte; Police Chief Jon Zeliff; Community Development Director Tom Humphrey; Parks and Public Works Director
Matt Samitore; Flood Plain/Storm Drain Coordinator and City Recorder Deanna Casey were also present.
IV. PUBLIC APPEARANCES
Mayor Williams recognized special guest Jackson County Commissioner Don
Skundrick. V. CONSENT AGENDA
A. City Council Minutes from March 10, 2011
B. Approval of 2011 Surplus Property List
Bruce Dingler made a motion to approve the Consent Agenda as
presented. Kay Harrison seconded. Roll call: Allen Broderick, yes, Bruce
Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
VI. ITEMS REMOVED FROM CONSENT AGENDA - None
VII. PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS
A. Resolution No. _XXX_, Directing Staff to Take All Necessary Action
to Resolve Health and Safety Issues at Site of Former Mon Desir Restaurant
Assistant City Manager Chris Clayton explained that the proposed resolution directs staff to enforce the city code regarding derelict property. Staff had made
several attempts to get the owners to clean up the burned down building. The
resolution authorizes staff to spend city funds and collect the expenditures from the property owner per chapter 8.04. The owner has been incurring fines from
the City for failure to comply.
Page 2 Council Agenda, April 14, 2011
After the council packet was prepared the property owner hired a company to complete the clean up. The property in question has been cleaned to city
standards. Council does not have the authority to wave all fines against the property owner
but they would be able to authorize a letter to the Judge in support of reducing the fine.
Edic Sliva, property owner Mr. Sliva stated that there were delays with the fire department wanting to use
the building as a burn to learn opportunity, then the company he contracted to
demolish the building kept raising the fees. He is truly sorry it has taken so long to clean up the property. He does not expect the Council to wave all the fines but
would appreciate a letter to the judge requesting a reduction in the fees.
Carol Fischer made a motion to issue a memorandum to wave the entire
fine imposed by the City regarding the removal of the Mon DeSir Restaurant remains. Matt Stephenson seconded. Roll call: Allen Broderick, yes,
Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes;
Hank Williams, yes; and Matt Stephenson, yes. Motion approved. B. Second Reading Ordinance No. 1947, An Ordinance Amending Chapter 8.24, Flood Damage Prevention, of the Central Point Municipal Code to Comply with the National Flood Insurance
Program, Adopt the Revised State Model Code and Improve
Coordination of all Local Flood-Related Regulations
Floodplain/Storm Coordinator Stephanie Holtey stated that this is the second
reading of an ordinance to amend the Flood Damage Prevention Code to comply with the National Flood Insurance Program. The revisions have been through
several public hearings. Recommended changes from the March 10th City
Council public hearings have been incorporated.
Council Member Matt Stephenson stated that the word “square” needs to be
added to page 13 of the ordinance where it talks about recreational vehicles. It should read four hundred square feet, not four hundred feet.
Matt Stephenson made a motion to approve Ordinance 1947, An Ordinance Amending Chapter 8.24, Flood Damage Prevention, of the Central Point
Municipal Code to Comply with the National Flood Insurance Program, Adopt the Revised State Model Code and Improve Coordination of all Local
Flood-Related Regulations with the clarification of four hundred square feet
for a recreational vehicle. Kay Harrison seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes;
Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
Page 3 Council Agenda, April 14, 2011
C. Second Reading Ordinance No. 1948, An Ordinance Amending
Sections 17.57.020, 17.57.030, and 17.57.040 of the Central Point
Municipal Code Regarding Fences within Floodplain
Mrs. Holtey stated that there were no recommended changes at the first reading
of this ordinance on March 10, 2011, regulating fences in the floodplain.
Allen Broderick made a motion to approve Ordinance 1948, An Ordinance
Amending Sections 17.57.020, 17.57.030, and 17.57.040 of the Central Point Municipal Code Regarding Fences within Floodplain. Kelly Geiger seconded.
Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol
Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
D. Second Reading Ordinance No. 1949, An Ordinance Amending Chapter 10.05.040 Fire Lanes
Parks and Public Works Director Matt Samitore stated that this is the second reading of an ordinance amending the fire lane ordinance. There were some
grammatical changes to section 1 and staff has added back the tow-away zones to section “B”.
Kay Harrison made a motion to approve Ordinance 1949, An Ordinance Amending Chapter 10.05.040 Fire Lanes. Allen Broderick seconded. Roll call:
Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes;
Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
E. Resolution No. 1283, A Resolution Updating the Public Works Standards and Specifications
Parks and Public Works Director Matt Samitore stated that Field Inspector Greg Graves has been working with staff and the community in order to update the
Central Point Public Works Standards and Specifications. Mr. Graves explained some of the major changes.
Decorative lighting has been removed as a choice for street lighting by Developers except for the Transit Oriented Development Area. The lights are
very expensive to maintain and Pacific Power has developed ornamental lighting that wasn’t in existence a few years ago.
Right of way tree planting, protection and removal standards have been
created and enhanced.
General design criteria for projects located in a Special Flood Hazard Area
have been added to coincide with the new amendments to Chapter 8.24.
All concrete is standardized at 3300psi.
All trench backfill in the upper zone of roadways will be cement/sand slurry
only.
Plate locks will be required on jump plates.
All materials will be made in the USA, unless otherwise approved.
Page 4 Council Agenda, April 14, 2011
Street requirements have been changed to more closely reflect designs in
Medford and in the T.O.D.
The Traffic Impact Analysis section has been updated to be compliant with
the Transportation Planning Rule.
Half street overlay has been added as an option for the City in areas where
utility work has damaged existing roadway.
Council would like to have a study session so they can review the changes in
comparison to the previous version.
Bruce Dingler made a motion to approve Resolution No. 1283, Updating the
Public Works Standards and Specifications. Matt Stephenson seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion
approved.
F. Resolution No. 1284, Requesting Jurisdictional Exchange of a
Portion of West Vilas Road
Mr. Samitore stated that in 2009 the City requested a jurisdictional control of a
portion of Hamrick Road and a small portion of West Vilas Road. The intent at that time was to include all of West Vilas that was currently inside our City limits.
Unfortunately there was some confusion on the agreement and the City did not
receive all the area it anticipated.
The original resolution did not include a very small section of W. Vilas Road
which is needed to better coordinate road improvements along this corridor.
Kay Harrison made a motion to approve Resolution No. 1284, requesting Jurisdictional Exchange of a Portion of West Vilas Road. Kelly Geiger
seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes;
Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
VIII. BUSINESS
A. Urban Renewal AdHoc Committee Report Assistant City Manager Chris Clayton stated that the Council authorized an
AdHoc Committee to review the feasibility of an Urban Renewal Agency for the
City of Central Point. The Committee consisted of Herb Farber, Hank Williams, Kay Harrison, Bruce Dingler, Chuck Piland, Francis Plowman and Steve Weber.
Committee Chair Herb Farber gave an overview of the recommendation from the Adhoc Committee. Based on the key findings it is the consensus of the
Committee that conditions of blight exist within the City, particularly in the downtown and surrounding neighborhoods, and urban renewal is both a viable economic development strategy and a strong economic development tool that
can, and should be used, for the long-term implementation of the City’s
Page 5 Council Agenda, April 14, 2011
downtown revitalization goals. It is the committee’s unanimous recommendation that the Council, at its earliest convenience, proceed with a declaration of blight,
authorization of an urban renewal agency, and preparation of an urban renewal plan. It is the Committee’s determination that tax increment financing is extremely effective in addressing and promoting economic development objectives.
It could still take a year to designate and finalize an Urban Renewal District. The
Council would be able to stop the process at any time if they believe it is not in
the best interest of the City and residents. Currently the City has in-house resources to work on this project.
Allen Broderick made a motion directing staff to proceed with the steps needed to declare blight and move towards the finalization of creating an
Urban Renewal District. Carol Fischer seconded. Roll call: Allen Broderick, yes,
Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
B. Appointment of Council Member Ward III
Mayor Williams stated that he received four applications from Central Point Citizens interested in the Ward III Council position. He stated that he interviewed Lauren Immonen and Ellie George. He did not need to interview Walter
Moczygemba because he has been involved with the City for several years, and Mike Quilty does not qualify for Ward III. After interviewing the two new
candidates his recommendation is Ellie George. He feels that she would be the
best fit for the City Council and the residents of Ward III at this time. Mrs. George would start her term on May 1st but will be encouraged to attend any meetings
prior to that date.
Bruce Dingler made a motion to appoint Ellie George to Council Member
Ward III position being vacated by Matthew Stephenson to take effect May 1, 2011. Kelly Geiger seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams,
yes; and Matt Stephenson, yes. Motion approved.
C. Appointment of Committee Members
Mayor Williams stated that there were several applications received for vacancies on the Budget Committee, Arts Commission, Parks and Recreation
Commission and Multicultural Committee. Mayor Williams presented his recommendations to the Council for approval.
Matt Stephenson made a motion to appoint Bill Stults, Randy Sparacino and Mike Quilty to the Budget Committee for three year terms. Kay Harrison
seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes;
Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
Page 6 Council Agenda, April 14, 2011
Kay Harrison made a motion to appoint Lauren Immonen to the Arts
Commission with a term expiration date of December 13, 2013. Kelly Geiger
seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt Stephenson, yes. Motion approved.
Kelly Geiger made a motion to appoint Mark Ludwiczak to the Parks and
Recreation Commission with a term expiration of December 31, 2013. Kay
Harrison seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt
Stephenson, yes. Motion approved.
Allen Broderick made a motion to appoint Christina Garrett to the
Multicultural Committee with a term ending December 31, 2012. Carol
Fischer seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Matt
Stephenson, yes. Motion approved. IX. MAYOR'S REPORT
Mayor Williams reported that:
he attended the Medford Water Commission where they agreed to go ahead
with the increase in water fees for the small Cities. This will be a large hit on
the City budget for next year.
He attended the FFA Convention and was very impressed by those young
adults.
He attended the Oregon Cheese Festival.
He attended a meeting with Senator Merkley in Medford.
X. CITY MANAGER’S REPORT Assistant City Manager Chris Clayton stated that Phil Messina was out of town
and a conference. He has been working with departments on the budget and he attended RPS hearings.
XI. COUNCIL REPORTS
Council Member Bruce Dingler reported that he attended the Urban Renewal
Adhoc Committee.
Council Member Carol Fischer stated that she attended the FFA Convention and
was amazed at the things they are doing in that organization.
Council Member Kay Harrison reported that she:
Attended an MPOPAC meeting where they worked to prioritize projects for
CMAQ money.
Attended board meetings for RVSS, Jackson County Expo, RVTD and
RVCOG.
Page 7 Council Agenda, April 14, 2011
Attended the FFA opening ceremony.
Council Member Kelly Geiger attended the FFA Convention opening ceremony.
XII. DEPARTMENT REPORTS
Parks and Public Works Director Matt Samitore reported that:
They should start construction on the 5th and Victoria storm drain project next week.
RVSS will be working on a sewer line at 9th and Oak Street right at the entrance to McDonalds. Staff will try to get them to work in the evenings to
cause as little impact to the business as possible.
Police Chief Zeliff stated that he will be attending the academy graduation of one
of our officers tomorrow in Salem. Community Development Director Tom Humphrey stated that:
He attended the County RPS Planning meeting. They are currently discussing the Phoenix interchange and the reasons for the Fairgrounds not
being included in the Central Point plan.
The property owner for the Cowley building has hired an engineer to review
the structure of the building. At this time we do not need to condemn the building.
XIII. EXECUTIVE SESSION - None XIV. ADJOURNMENT
Matt Stephenson moved to adjourn, Kay Harrison seconded, all said “aye” and
the Council Meeting was adjourned at 9:38 p.m.
The foregoing minutes of the March 24, 2011, Council meeting were approved by the
City Council at its meeting of April 14, 2011.
Dated: _________________________ Mayor Hank Williams
ATTEST:
__________________________ City Recorder
Page 8 Council Agenda, April 14, 2011
Michael Quilty
942 Forest Glen Drive
Central Point, Or 97502
541-664-7907
Mar. 24, 2011
City Council Central Point, Or
The Agenda for the RVMPO Policy Committee Meeting for March 2011 is attached. The following items were discussed
and acted on. Public Hearing for award of approximately $190,000.00 in CMAQ Grants postponed until April 26, 2011. The staff report
on the applications was incomplete for a variety of reasons and in order to treat all applicants fairly, the Policy Committee voted to postpone until our next meeting the entire Public Hearing on the award of grant funds under the CMAQ program. MPO staff challenged Jackson County’s right to sponsor a project.(Current local policy requires a MPO jurisdiction
sponsor any private application for CMAQ funds). MPO staff stated they were unable to score the county’s application and were unsure if it qualifies. They then scored two applications that do not appear to have jurisdictional sponsors. There is also a question as to whether Medford can us CMAQ funds awarded for an Alt. Fuel project for a street
realignment.
I have a personal dislike for changing the CMAQ Grant awards for an alternate project. These funds were competitively
awarded 2 to 4 years ago and there is no guarantee that the current project would have scored as well as the original. This sets a president for writing great scoring grant proposals in order to secure the CMAQ dollars for a jurisdiction, then
changing the funds to potentially less deserving projects in the future and bypasses the procedures that are in place to pick
projects.
Policy Committee voted to continue the local dues at 12.6 cents per person as the jurisdictional rate for MPO dues. MPO dues are used to develop the needed local match that allows us to access federal transportation funds. There are MPO’s that cannot use obligated federal funding due to the lack of local match dollars.
Central Point’s dues for 2012 are proposed at $ 2167.83 a change of $5.04 from 2011.
A draft of the 2011-2012 Unified Planning Work Program ( UPWP) was distributed. This is the proposed work for the MPO for the coming year. (see attached).
Letter of support for RVCOG to apply for ODOT/DLCD Transportation Growth Management Program grant to continue the North-South Travel Study that MPO staff started two years ago. There were questions as to the level of participation
that has been coordinated with RVTD. RVTD does not feel that COG staff have been very receptive to their requests for
inclusion in the scoping of the project.
Transportation for America Oregon representative Chris Rall spoke about his organization and its aims for
reforming the federal transportation system. The group maintains a website, http://t4america.org/ .
Sincerely,
Michael G. Quilty
Page 9 Council Agenda, April 14, 2011
Ordinance
Declaring Blighted
Areas in Central Point
Page 10 Council Agenda, April 14, 2011
TO: Central Point City Council
FROM: Christopher Clayton – Assistant City Manager
AGENDA DATE: April 14, 2011
SUBJECT: Ordinance declaring blight and the need for an urban renewal agency
_______________________________________________________________________________________
HISTORY
On October 28, 2010 the City Council passed Resolution No. 1274 creating a six member Urban Renewal Advisory
Committee. The charge to the Committee was to provide the City Council with a written recommendation regarding
the use of urban renewal.
On March 24, 2011 the Committee completed its report entitled City of Central Urban Renewal Feasibility Report, March 17, 2011 and presented it to the Council. Based on the Committee’s recommendation the
City Council, at their meeting of March 24, 2011, directed staff to prepare an ordinance declaring the
presence of blighted conditions and the need for an urban renewal agency for consideration at their April 14,
2011 meeting.
PROPOSAL
At the direction of the City Council Staff has prepared Ordinance declaring that there exists within the City
of Central Point blighted area as defined in ORS 457.010 and that there is a need for an urban renewal
agency. If approved Ordinance is limited to the:
1. Declaration that blighted areas exist within the City;
2. The formation of an urban renewal agency, referred to as the Central Point Development
Commission;
3. The membership of the urban renewal agency would consist of the City Council members; and
4. The authority and responsibilities of the urban renewal agency will be limited to those specified in
ORS 457.
If Ordinance is approved the commission members of newly appointed urban renewal agency will need to
be necessary for the newly created urban renewal agency to meet and commence preparation of an urban
renewal plan.
FISCAL IMPACT
Ordinance only declares that blighted areas exist within the City and that an urban renewal agency is needed
to prepare an urban renewal plan. Over the course of the next year (approx.) there will be costs associated
with both the preparation of the urban renewal plan, and operation of the urban renewal agency
(notification, materials, staffing, etc.). The cost to complete an urban renewal plan is approximately
$100,000. Current staffing is capable of preparing the urban renewal plan, thus reducing costs to materials
and notification expenses (approximately $20,000). The cost of preparation of the urban renewal plan can be
assigned, by written agreement, to the urban renewal agency, with the understanding that the urban renewal
agency will reimburse the City at an agreed upon later date.
Staff Report
Administration Department
Phil Messina, City Administrator
Chris Clayton, Assistant City Administrator
Deanna Casey, City Recorder
Barb Robson, Human Resources Manager
Page 11 Council Agenda, April 14, 2011
POSITIVE IMPACTS
Adoption of Ordinance sets in motion an economic development strategy targeting the revitalization of the
City’s older downtown core area and other related blighted areas.
NEGATIVE IMPACTS
There are no negative impacts as a result of adoption of Ordinance. Adoption of Ordinance only sets in
motion the further review and consideration of plans to specifically identify and address the City’s blighted
areas.
STRATEGIC PLAN GOALS:
1. Proactive Government and Citizen Involvement
a. Goal 2- Build City pride and positive image.
i. Strategy e - Review current codes in use for development and improvement. Revise
as necessary to create “healthy neighborhoods”.
2. Downtown Revitalization and Beautification
a. Goal 1 – Enhance Central Point’s downtown as a culturally unique and vibrant focal point
that bridges the past and present and embraces the future.
b. Goal 2 – Create a plan to revitalize and redevelop the Downtown in support of retail, office,
housing, arts and entertainment.
RECOMMENDATION
Approve Ordinance.
ATTACHMENTS
Attachment “A” Ordinance
Page 12 Council Agenda, April 14, 2011
ORDINANCE NO. _______
AN ORDINANCE DECLARING THAT BLIGHTED AREAS EXIST WITHIN THE CITY OF
CENTRAL POINT, RECOGNIZING THE NEED FOR AN URBAN RENEWAL AGENCY TO
FUNCTION IN THE CITY, AND ADDING CHAPTER 2.62 TO THE CENTRAL POINT
MUNICIPAL CODE PROVIDING FOR THE EXERCISE OF THE AGENCY’S POWERS BY
THE CENTRAL POINT DEVELOPMENT COMMISSION
RECITALS:
A) In October 2010 the Central Point City Council created by resolution the Central Point Urban
Renewal Advisory Committee (the “Committee”) to make recommendations to the council
regarding the need for an urban renewal agency to function within the city; and
B) On March 24, 2011 the Committee reported the presence of blight and the need for an urban renewal
agency to function in the City; and
C) This ordinance is adopted to declare blight and authorize the creation of an urban renewal agency.
THE PEOPLE OF THE CITY OF CENTRAL POINT DO ORDAIN AS FOLLOWS:
The following Chapter 2.62 is added to the Central Point Municipal Code:
Chapter 2.62
Central Point Development Commission
Sections:
2.62.010 Establishment and Need for Commission
2.62.030 Membership
2.62.040 Powers and Duties.
2.62.050 Rules of Procedure.
2.62.060 Chairperson.
2.62.070 Staff services.
2.62.080 Compensation.
2.62.090 Conflict of Interest.
2.62.010 Establishment and Need for Commission. Blighted areas exist within the City of Central
Point and there is a need for an urban renewal agency to function in the city. The agency shall be known
as the "Central Point Development Commission."
ATTACHEMENT “A”
Page 13 Council Agenda, April 14, 2011
2.62.030 Membership. The membership of the board of directors shall consist of the city council.
2.62.040 Powers and Limitations. The commission shall have all rights, powers, duties, privileges and
immunities granted to and vested in an urban renewal agency by the laws of the State of Oregon,
provided, however, that any act of the governing body acting as the commission shall be considered the
act of the commission only and not the council.
2.62.050 Rules of Procedure. The commission shall adopt rules of procedure to govern the conduct of
commission business.
2.62.060 Chairperson. The mayor shall serve as the commission chairperson. The chairperson shall be
a voting member. A vice chairperson will be chosen by the commission at the first meeting of each year.
2.62.070 Staff Services. The city manager shall provide such staff and consultation services to the
commission as shall be appropriate. A record shall be kept of commission's proceedings. The official
minutes of the commission shall be maintained in the city recorder's office.
2.62.080 Compensation. Commission members shall receive no compensation other than expenses as
authorized by the city manager or mayor and council.
2.62.090 Conflict of Interest. A member of the commission shall not participate in any commission
proceeding or action in which any of the following has a direct or substantial financial interest: the
member or his spouse, brother, sister, child, parent, father-in-law, mother-in-law, any business in which
the member is serving or has served within the previous two years, or any business with which he is
negotiating for or has an arrangement or understanding concerning prospective partnership or
employment. Any actual or potential interest shall be disclosed at the meeting of the commission where
the action is being taken.
Passed by the Council and signed by me in authentication of its passage this _____ day of
_____________________, 2011.
__________________________
Mayor Hank William
ATTEST:
____________________
City Recorder
Page 14 Council Agenda, April 14, 2011
Resolution
Setting Water Rates
Page 15 Council Agenda, April 14, 2011
To: Mayor & Council
From: Bev Adams, Finance Director
Chris Clayton, Asst. City Manager
Date: March 24, 2011
Subject: Water rate adjustment
BACKGROUND:
In November of 2009, the FCS Group completed a water rate study which confirmed that a water rate increase
was necessary to meet current and future needs and to maintain water distribution service levels currently
provided by the City of Central Point. The principal project manager for FCS group, John Ghilarducci,
presented a comprehensive rate analysis and future rate recommendations to the City Council in early 2010.
After careful deliberation, the City Council adopted a “cost of service” rate plan (attachment “A”) which
included an inverted block rate structure to be implemented over a period of 10 years; a plan which included
annual water rate adjustments and a gradual increase of the repair and replacement fees.
Following Council adoption of the new “cost of service” rate plan which was implemented in February
2010, a series of variables has proceeded to negatively impact the revenue projections contained in the 2009
water rate analysis.
Current Variables:
1. Unusually wet/cold winter & spring.
2. Unusually short summer weather period.
3. Increase in water purchase price from Medford Water Commission.
4. The new rate structures impact on conservation.
Staff Report
Finance Department
Bev Adams, Finance Director
Page 16 Council Agenda, April 14, 2011
The attached updated/revised “cost of service” plan (attachment “B”) is largely based on the Medford Water
Commission’s unanticipated increase (4.1% of the proposed 6.4%). However, the updated/revised analysis
takes into consideration the City’s need to stabilize water revenues, the need for aggressive conservation, the
increasing need for a low income utility subsidy, and predicted future Medford Water Commission increases.
In addition to those previously discussed, Staff included several more known factors in the updated rate
analysis. These factors include: $200,000 less in revenue last year due to seasonal weather variation and the
looming debt service on the 3 million gallon water reservoir project due to be completed in 2013 (this was
included in the 2009 cost study and will only have an impact debt service has an unforeseen change/increase).
Factors not included in the proposed rate are: the Medford Water Commission’s future decisions on rate
structure, conservation, investment policy, and willingness to bond for large capital improvement projects.
Possible Future variables:
1. Water reservoir capital project – debt service needs when project is completed in 2013.
2. Medford Water Commission’s future policy decisions.
PROPOSAL:
1. Staff has prepared a resolution adopting a new rate schedule per the revised attachment (Attachment
“B”) If adopted, the revised rate schedule will increase the average single family residential base rate
from $9.40/month to $11.00/month, a net increase $1.60 per month. There is no proposed change to
consumption rates.
2. For Central Point Citizens who qualify (based on federal poverty standards) for our current 50% low
income discount, this change will amount to a net increase of $ .80 per month.
Page 17 Council Agenda, April 14, 2011
FISCAL IMPACTS/POSITIVE IMPACTS
1. Adoption of the revised rates will strengthen the integrity of the water fund and absorb the current
increase being passed along by the Medford Water Commission.
NEGATIVE IMPACTS
1. The previously adopted “cost of service” rate plan proposed a 4.0% increase for the 2011/2012 budget
cycle. The revised rate proposal would amplify the 2011/2012 budget cycle rate increase to 6.4%.
STRATEGIC PLAN GOALS: Managed Growth and Infrastructure
1. Goal 3 – Continually update infrastructure plans.
RECOMMENDATION
1. Approved the attached resolution and “revised” rate plan as proposed.
ATTACHMENTS 1. Attachment “A” - 2009 “cost of service” adopted rate schedule.
2. Attachment “B” - 2011 “cost of service” revised and proposed rate schedule memorandum.
3. Attachment “C” – Projected impact of revised rates to current council member monthly utility fees. 4. Attachment “D” – Resolution revising the “cost of service” rate schedule.
Page 18 Council Agenda, April 14, 2011
City of Central Point
Water Rate & COS Update
Summary
Fiscal Year Ending 6/30:
Capital Funding 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Capital Projects 674,000$ 1,824,160$ 4,515,572$ 6,777,193$ 322,296$ 2,320,522$ 1,495,354$ 303,191$ 306,559$ 222,464$
Other Outside Sources 3,000,000 - - - - - - - - -
Loan Proceeds - - - - - - - - - -
Other Debt Proceeds - - - - - - - - - -
Revenue Bond Proceeds - - - 4,142,341 - 1,308,243 834,630 - - -
Use of Improvement Fee Fund Balance - 1,158,456 1,684,574 158,932 190,517 199,167 193,604 196,336 199,892 151,156
Use of Reimbursement Fee Fund Balance - 51,591 8,955 15,630 31,382 33,019 32,065 32,539 33,131 33,643
Use of Capital Fund Balance - 614,113 2,822,043 2,460,291 100,397 780,093 435,055 74,316 73,537 37,665 Direct Rate Funding - - - - - - - - - -
Total Funding Sources 3,000,000$ 1,824,160$ 4,515,572$ 6,777,193$ 322,296$ 2,320,522$ 1,495,354$ 303,191$ 306,559$ 222,464$
Fiscal Year Ending 6/30:
Revenue Requirements 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues
Rate Revenues Under Existing Rates 2,150,000$ 2,171,500$ 2,214,750$ 2,259,734$ 2,303,330$ 2,347,621$ 2,392,721$ 2,438,514$ 2,485,233$ 2,529,870$ Non-Rate Revenues 139,158 91,478 93,884 94,819 105,885 107,771 112,635 115,731 116,992 118,196
Total Revenues 2,289,158$ 2,262,978$ 2,308,633$ 2,354,552$ 2,409,215$ 2,455,392$ 2,505,356$ 2,554,245$ 2,602,225$ 2,648,066$
Expenses
Cash Operating Expenses 2,254,630$ 2,455,580$ 2,416,967$ 2,516,511$ 2,628,655$ 2,747,193$ 2,871,396$ 3,002,419$ 3,140,766$ 3,286,892$
Existing Debt Service - - - - - - - - - -
New Debt Service - - - 369,424 369,424 486,097 560,531 560,531 560,531 560,531
Rate Funded CIP - - - - - - - - - -
Rate Funded System Reinvestment 20,006 65,489 131,726 231,857 301,003 393,418 484,388 563,457 643,796 723,764
Total Expenses 2,274,636$ 2,521,069$ 2,548,694$ 3,117,792$ 3,299,082$ 3,626,707$ 3,916,315$ 4,126,407$ 4,345,093$ 4,571,187$
Annual Surplus / (Deficiency)14,522$ (258,091)$ (240,060)$ (763,240)$ (889,867)$ (1,171,316)$ (1,410,960)$ (1,572,161)$ (1,742,868)$ (1,923,121)$
Annual Rate Adjustment 25.00%4.00%4.00%4.00%4.00%4.00%4.53%3.46%3.44%3.46%
Base Monthly Bill (Avg SFR)29.99$ 30.62$ 31.13$ 31.33$ 31.90$ 32.30$ 32.94$ 33.40$ 33.88$ 34.41$
Monthly System R&R Cost (Avg SFR)0.27 0.88 1.77 3.09 3.95 5.08 6.16 7.05 7.91 8.75
Total 30.25$ 31.50$ 32.89$ 34.42$ 35.85$ 37.39$ 39.10$ 40.45$ 41.79$ 43.16$
Rate Revenues After Rate Increase 2,418,750$ 2,822,950$ 2,994,341$ 3,177,367$ 3,368,213$ 3,570,299$ 3,803,680$ 4,010,675$ 4,228,101$ 4,452,991$
Net Cash Flow After Rate Increase 283,272 393,359 539,532 154,393 175,016 51,363 - - - (0)
Coverage After Rate Increases n/a n/a n/a 2.21 2.32 1.96 1.88 2.03 2.19 2.36
Fiscal Year Ending 6/30:
Fund Balances 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Operating Fund 555,936$ 605,486$ 594,336$ 620,510$ 648,162$ 677,390$ 677,390$ 677,390$ 677,390$ 677,390$
Capital (Reserve) Fund 4,578,095 4,487,733 2,460,291 421,584 780,093 435,055 495,264 996,787 1,591,966 2,317,864
SDC Improvement Fee Fund 2,689,888 1,684,574 158,932 190,517 199,167 193,604 196,336 199,892 202,989 258,884
SDC Reimbursement Fee Fund 51,591 8,955 15,630 31,382 33,019 32,065 32,539 33,131 33,643 34,318
Debt Reserve Fund - - - 369,424 369,424 486,097 560,531 560,531 560,531 560,531
Total 7,875,510$ 6,786,748$ 3,229,189$ 1,633,417$ 2,029,865$ 1,824,210$ 1,962,060$ 2,467,730$ 3,066,518$ 3,848,987$
Combined Minimum Target Balance 645,455$ 703,394$ 739,618$ 1,197,783$ 1,223,160$ 1,386,455$ 1,498,829$ 1,529,294$ 1,559,690$ 1,590,782$
ATTACHMENT "A"
Page 19 Council Agenda, April 14, 2011
Memorandum
To: Bev Adams, Finance Director Date: April 5, 2011
From: John Ghilarducci, Managing Principal
Michael Dean, Project Consultant
RE
In March 2011, the City of Central Point retained FCS GROUP to perform a revenue requirement update
for its water service. The updated analysis was needed to incorporate Medford Water Commission
(MWC) rate increases, forecasted to be 8.75% for each of the next three years (FY 2011 through FY 2013),
and other new information. New information included the most recent budget, the revised capital
improvement plan, updated capital funding options, and a reduced revenue projection resulting from
lower-than-projected water usage in FY 2010.
2011 Water Rate Update
The combined impact of these changes warrants an immediate water rate increase of 6.4% for the
remainder of FY 2011, followed by similar 6.4% increases for each of the next two fiscal years, FY 2012
and FY 2013. These increases are projected to generate revenue sufficient to meet increased water
purchase costs, as well as provide funding for debt service on the new $5.6 million State Revolving Fund
loan.
We further recommend that the entirety of the immediate 6.4%rate increase be applied to the water fixed
charge in order to limit revenue volatility associated with volume rates. For residential customers with
5/8” meters, the resulting total base charge would be $11.00 per month, up from the current $9.40 per
month.
Finally, we recommend that water rates be escalated annually with cost inflation, at a minimum, in order
to avoid large, “catch-up” rate increases. As shown below, the forecast includes annual rate increases of
3.4% to 3.8% after FY 2013 and through FY 2019.
Revenue Requirements 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues
Rate Revenues Under Existing Rates 2,500,000$ 2,549,792$ 2,601,582$ 2,651,773$ 2,702,764$ 2,754,686$ 2,807,408$ 2,861,194$ 2,912,584$ Non-Rate Revenues 79,575 86,190 96,938 98,394 99,873 101,378 102,907 104,467 106,329
Total Revenues 2,579,575$ 2,635,982$ 2,698,520$ 2,750,167$ 2,802,637$ 2,856,065$ 2,910,315$ 2,965,661$ 3,018,912$
Expenses
Cash Operating Expenses 2,473,150$ 2,486,938$ 2,650,934$ 2,766,144$ 2,887,908$ 3,015,109$ 3,149,144$ 3,285,822$ 3,434,972$
Existing Debt Service - - - - - - - - -
New Debt Service - - 390,465 390,465 390,465 390,465 390,465 390,465 390,465
Rate Funded CIP - - - - - - - - -
Rate Funded System Reinvestment 59,577 116,006 189,679 246,942 304,094 374,599 438,319 514,676 578,266
Additions Required to Meet Op. Reserve - - - - - - - 14,842 27,895
Total Expenses 2,532,727$ 2,602,944$ 3,231,079$ 3,403,552$ 3,582,467$ 3,780,173$ 3,977,928$ 4,205,805$ 4,431,599$
Annual Surplus / (Deficiency)46,848$ 33,039$ (532,559)$ (653,385)$ (779,830)$ (924,109)$ (1,067,613)$ (1,240,144)$ (1,412,686)$
Annual Rate Adjustment 6.40% 6.40% 6.41% 3.46% 3.38% 3.64% 3.36% 3.85% 3.60%
Rate Revenues After Rate Increase 2,660,000$ 2,886,610$ 3,134,140$ 3,305,158$ 3,482,594$ 3,678,795$ 3,875,021$ 4,101,338$ 4,325,270$
Net Cash Flow After Rate Increase 206,848 369,856 - - - - (0) 14,842 27,895
Coverage After Rate Increases n/a n/a 1.77 1.70 1.85 2.05 2.18 2.44 2.61
ATTACHMENT “B”
Page 20 Council Agenda, April 14, 2011
We greatly appreciate the efforts and support of City staff throughout the update process. It has been a
pleasure working with you and other staff on this effort and we look forward to being of service to the City
in the future. If there are any questions, please do not hesitate to contact me at (425) 867-1802 x225.
Page 21 Council Agenda, April 14, 2011
Changes in Select Accounts
Current Avg Bill New Avg Bill % Increase
Williams, Hank 21.57$ 23.17$ 7%
Fischer, Carol 18.56$ 20.16$ 8%
Broderick, Allen 14.72$ 16.32$ 10%
Geiger, Kelly 22.92$ 24.52$ 7%
Stephenson, Matthew 28.10$ 29.70$ 5%
Beebe, Ruby (Hardship)5.30$ 6.10$ 13%
Walton, Bill 65.05$ 66.65$ 2%
Hidden Grove (8")1,174.88$ 1,225.78$ 4%
Expo 213.75$ 563.25$ 62%
Note: Current average bills are based on the 12 month period in 2010.
ATTACHMENT "C"
Page 22 Council Agenda, April 14, 2011
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF CENTRAL POINT SETTING WATER RATES.
RECITALS:
A. In November 2009, the City of Central Point conducted a comprehensive water rate
study. Based on the findings of that study it was determined that in the best interest of
the City’s water utility service business water rates will be amended annually.
B. March 2011 revenue requirements were reviewed and an update was made to the
water study and rates. This update to the water rate master plan includes Medford
Water Commission’s current rate increase and forecasting for the next two years of
water purchases, and provided sufficient funding for debt service on the water reservoir
project to be completed in 2013.
C. The rate adjustment will affect the fixed monthly base charge for service and repair and
replacement only, in an effort to limit a portion of the revenue volatility associated with
volume based rates.
D. There is no change to water consumption rates.
The City of Central Point resolves to adopt the following rates to take effect April 20, 2011:
Residential
Meter Monthly Monthly Total Monthly
Volume Charge Volume Charge Volume Charge
Size Base Charge R & R Charge Fixed Charge
First 8 ccf 8 - 22 ccf Over 22 ccf
5/8" 10.00 1.00 11.00
0.80 1.55 2.55
1" 15.00 2.45 17.45
0.80 1.55 2.55
1.5" 20.00 8.15 28.15
0.80 1.55 2.55
2" 30.00 11.15 41.15
0.80 1.55 2.55
3" 50.00 25.25 75.25
0.80 1.55 2.55
4" 70.00 43.85 113.85
0.80 1.55 2.55
6" 135.00 86.00 221.00
0.80 1.55 2.55
8" 210.00 139.50 349.50
0.80 1.55 2.55
ATTACHMENT “D”
Page 23 Council Agenda, April 14, 2011
Commercial & Standby
Meter Monthly Monthly Total Monthly
Volume Charge
Size Base Charge R & R Charge Fixed Charge
First 8 ccf
5/8" 8.50 1.00 9.50
1.40
1" 11.50 2.10 13.60
1.40
1.5" 16.50 4.00 20.50
1.40
2" 21.50 7.15 28.65
1.40
3" 36.50 14.10 50.60
1.40
4" 53.50 21.70 75.20
1.40
6" 100.00 44.00 144.00
1.40
8" 158.00 68.00 226.00
1.40
Irrigation
Meter Monthly Monthly Total Monthly
Volume Charge
Size Base Charge R & R Charge Fixed Charge
First 8 ccf
5/8" 11.00 1.50 12.50
1.55
1" 17.00 4.15 21.15
1.55
1.5" 27.00 8.65 35.65
1.55
2" 39.00 14.00 53.00
1.55
3" 72.00 28.00 100.00
1.55
4" 108.00 44.00 152.00
1.55
6" 208.00 88.00 296.00
1.55
8" 330.00 139.00 469.00
1.55
Other
Meter Monthly Monthly Total Monthly
Volume Charge
Size Base Charge R & R Charge Fixed Charge
First 8 ccf
Hydrant 25.00 20.00 45.00
1.40
Hidden Grove 116.05 4.30 120.35
1.40
Expo 0.00 0.00 0.00
1.46
Hardship Discount
50%
50%
Outside City Factor
150%
150%
Page 24 Council Agenda, April 14, 2011
Passed by the Council and signed by me in authentication of its passage this _____ day of April,
2011.
_______________________________
Mayor Hank Williams
ATTEST:
______________________________
City Recorder
Page 25 Council Agenda, April 14, 2011