Welcome to the
     City of Canyonville                                                   

250 N Main, Canyonville, OR 97417
                               
         541-839-4258 or 541-839-4020
Your Subtitle text

CANYONVILLE CITY COUNCIL

MEETING MINUTES

REGULAR SESSION 7:00 P.M.

Monday, December 17, 2012

REGULAR SESSION

 

I.                          CALL TO ORDER AND PLEDGE OF ALLEGIANCE:

Mayor Deaton called the meeting to order at 7:00 p.m. and all joined in the Pledge of Allegiance.

                                                         

II.                        ROLL CALL:

COUNCIL PRESENT:    Mayor Deaton, Councilors Braudt, Parker, Douglas, Kovachy, Coleman, Barton.

COUNCIL ABSENT:      Student Councilor Webb was not present.

STAFF PRESENT:         Administrator/Recorder Evans.

STAFF ABSENT:           Deputy Recorder Beckman and Superintendent Lakey were excused.

 

 

III.                      AGENDA REVIEW AND/OR ADDITIONS:

None.

 

IV.       PUBLIC COMMENT:

          None.

 

V.        CONSENT CALENDAR:       

1.      Approval of Special Session 11-15-12 Minutes

Councilor Barton moved, Councilor Parker seconded a motion to approve the 11-15-12 Special Session Minutes as written.  All voted “yes”.  The motion carried. 

 

2.      Approval of Regular Session 11-19-12 Minutes

Councilor Barton moved, Councilor Parker seconded a motion to approve the 11-19-12 Regular Session Minutes as written.  All voted “yes”.  The motion carried. 

 

VI.       PUBLIC HEARINGS:

            None

 

VII.      COUNCIL BUSINESS:

1.      Proclamation – 2012 Election Results

The 2012 Election Results Proclamation was read into record by Mayor Deaton.

 

2.      Amend Contract with Dyer Engineering / Memo, Administrator/Recorder Evans

Administrator Recorder Evans highlighted her memo noting that Value Engineering and Equipment Performance had been deleted from Phase 1 and moved to Phase 2 in order to help keep costs to a minimum.  However the following two new tasks had to be added to Phase 1:

·        Task 15 - Archeological Coordination: During the environmental assessment process it was discovered that the site was located in an area of significant cultural resources for the Tribe.  The engineer has already incurred additional expenses for obtaining quotes and assisting the City in the evaluation of the quotes.  There will also be more expenses for providing on site coordination during the investigation.

             

·        Task 16 – Permitting:  Permits are required for the Division of State Lands, Corps of Engineers, Oregon Department of Fish and Wildlife and the Department of Environmental Quality.  Originally the permits were going to be included in the CDBG grant for construction.  However, due to the significant amount of time it takes to obtain approval from the permitting agencies if we wait until the construction grant we will not be able to begin construction next spring.  

The contract with Dyer Partnership requires amending to reflect the appropriate tasks.  Even with the amendment the contract cost will still be reduced by $21,847.00.  Staff recommends amendment to the contract with Dyer Partnership reducing the not to exceed fee to $339,473.00.

           

Councilor Braudt moved, Councilor Douglas seconded a motion to amend the contract with Dyer Partnership reducing the not to exceed fee to $339,473.00 and authorize the Mayor to sign the contract. 

 

Discussion:  It was generally discussed if something was found during the archeological study the impact would be that the cost for the study would go up and it would be necessary to canvass the entire area.

 

All voted “yes”.  The motion carried.

 

3.      Amend CCD Contract / Memo, Administrator/Recorder Evans

Administrator/Recorder Evans noted that as the environmental assessment had started it was discovered that CDBG had particular rules and regulations for completion of the assessment which were different from the other funding agencies.  Therefore the City needs to amend the contract with the grant administrators, Coos Curry Douglas Development (CCD), at a cost of $5,000.00 in order for them to prepare an environmental assessment which meets all the requirements of CDBG.  It was further noted that the $5,000.00 does qualify as an expense covered by the grant.

 

Councilor Barton moved, Councilor Coleman seconded a motion to amend the contract with Coos Curry Douglas Development to include the preparation of the environmental assessment for an amount not to exceed $5,000.00 and authorize the Mayor to sign the contract.  All voted “yes”.  The motion carried.

 

4.      Award Archeology Study / Memo, Administrator/Recorder Evans

Administrator/Recorder Evans noted that the City was required to contact interested tribes to ensure there were no cultural resources that might be disturbed.  The City had received notification from the Cow Creek Tribe that the project was located in an area known to have significant cultural resources.  The project engineer developed a request for proposals based on information submitted by the tribe.  The following two quotes had been received for the archeological study:

·        University of Oregon                      $21,367.00

·        Heritage Research Associates          $  9,960.00

Heritage Research had taken the initiative to talk with the project engineer, State Historic Preservation Office as well as obtaining boring samples.  The difference in the bids was due to the effort extended by the bidders to obtain additional information.  Staff’s recommendation was that the Council award the contract to Heritage Research Associates in the amount of $9,960.00.

 

Councilor Barton moved, Councilor Kovachy seconded a motion to approve awarding a contract to complete the archeological assessment to Heritage Research Associates for $9,960.00 and authorize the Mayor to sign the contract.  All voted “yes”.  The motion carried.

 

5.      Amend Contract with Donovan Enterprises / Memo, Administrator/Recorder Evans

The original deadline for completing all of the tasks included in the CDBG was December 31, 2012.  Due to the unforeseen requirement of the archeological study the City was able to get the grant deadline extended to February 28, 2013.  Since the grant deadline was extended, Administrator/Recorder Evans was requesting an extension of the deadline for the rate study as well.  An extension would allow Administrator/Recorder Evans to work with the rate consultant longer and hopefully look at some individual situations in the billing system that needs analyzing.

 

Councilor Braudt moved, Councilor Barton seconded a motion to amend the contract with Donovan Enterprises to extend the contract deadline to February 28, 2013 and authorize the Mayor to sign the contract.  All voted “yes”.  The motion carried.

 

6.      Memorandum of Understanding with BLM / Memo, Superintendent Lakey

Councilor Braudt moved, Councilor Parker seconded a motion to table the Memo of Understanding with BLM until Superintendent Lakey could be present for discussion.

 

7.      Planning Commission applications / Memo, Deputy Recorder Beckman

Councilor Kovachy moved, Councilor Coleman seconded a motion to appoint Doug Sales to the Planning Commission for a term that will end 12/31/2015.  All voted “yes”.  The motion carried.

 

8.      Sewer Rate Study – Steve Donovan

Mr. Donovan reviewed the discussion and presentation from the Special Session held on November 15, 2012 noting that he had prepared a final report based on the Council’s direction from the meeting.  He also noted that this report would need to be adopted by the Council. 

It was assumed that the City will complete Phase 1 of the WWTP upgrade project in fiscal year 2014 at a current cost of $2,404,700.  It was further assumed that Phase 2 will be completed in fiscal year 2017 at an estimated cost of $10,501,900.

The following table displays the step rate increase strategy chosen by the Council.  Based on Council direction the first step increase will take place on July 1, 2013.   

 

This strategy will be setting rates in excess of net wastewater system revenue requirements.  The table which indicates how much potential surplus rate revenues may be generated by implementing the step rate increase strategy was not able to be added to this site. If you would like to see the tables look at the sewer rate study on the home page.

 

 Mr. Donovan noted that the use of the surplus can be used by the Council for one or a combination of the following uses:

 

1.      Held in General Contingency to “buy down” future Phase 2 Wastewater System Capital Improvements, or be used in support of the City’s projected Phase 2, $600,000 equity contribution to the project.

2.      Use to fund anticipated debt service reserve account requirements on future Wastewater System long term debt.

3.      Held in a depreciation reserve account to fund future Wastewater System infrastructure replacement.

 

Mr. Donovan reviewed the following tables for funding for each phase of the project. The cornerstone for Phase 1 funding is the award of $1,600,000 Community Development Block Grant (CDBG) from HUD.  Staff will be proceeding with the CDBG grant application process upon completion of the rate study.  Funding Plan for Phase 1 is as follows:

 

Funding Vehicle Mechanism

Amount of Award

Total Repayment Amount

HUD Community Development Block Grant

$1,600,000

$0

Oregon Business Development Dept. – Infrastructure Finance Authority loan; 25 year term; 1% interest rate

$554,700

$658,797

Cash (equity) contribution by City to project – assume cash is from Wastewater Capital Reserve Fund

$250,000

$0

Total projected Phase 1 development cost

$2,404,700

$658,797

 

Council has been presented with six (6) Phase 2 funding packages at the November 15, 2012 Special Session for consideration.  Council directed staff to pursue the funding package that produced the lowest estimated future rate increases.  The Phase 2 Council preferred funding plan consists of two loans, two grants, and a $600,000 equity contribution from the City.  Funding Plan for Phase 2 is as follows:

 

Funding Vehicle Mechanism

Amount of Award

Total Repayment Amount

Oregon Business Development Department – Infrastructure Finance Authority loan; 25 yr term; 1% interest rate

$4,200,950

$4,995,623

Oregon Business Development Department – Infrastructure Finance Authority grant

$750,000

$0

USDA Rural Utilities Service loan; 40 yr term; 2.75% interest rate*

$3,450,950

$5,981,341

USDA Rural Utilities Service grant

$1,500,000

$0

Cash (equity) contribution by the City to the project – assume the cash is from the Wastewater SDC Fund

$600,000

$0

Total projected Phase 2 development cost

$10,501,900

$10,976,964

 

Discussion:  The Council extensively discussed the cumulative surplus revenue that would be generated by the rate increase schedule.  The consensus of the Council was to ensure that the revenue would be held in reserve accounts and spent for the WWTP project.  It was noted that these revenues would be discussed through the budget process.  It was also noted that part of the granting requirements was to adopt a resolution addressing what the rates would be for the next five years.  The resolution could contain wording that would earmark additional revenue realized from the rate increase.

 

Councilor Braudt moved, Councilor Barton seconded a motion to adopt the Wastewater Rate Study.  All voted “yes”.  The motion carried.

 

Administrator/Recorder Evans and Mr. Donovan noted that they would continue working on the current sewer rate structure and would have recommendations for the Council’s review in January or February.

 

VIII.    REPORTS:

1.      SHERIFF’S OFFICE

a)      Deputy Craig Kinney reviewed the incidents and activities from the month of December.  He further highlighted training and emergency preparedness ongoing with the Sheriff’s Department in response to a recent incident that had occurred at a school in Roseburg.

 

b)   DC Sheriff’s Office Community News Letter.

      A letter had not been provided by the Sheriff’s Department.

 

2.      SUPERINTENDENT’S REPORT

Superintendent Lakey was not present to comment on his report.

 

3.      ADMINISTRATIVE REPORT

Administrator/Recorder Evans highlighted her report noting the following:

·        Housing Rehabilitation Loans – Due to more stringent reporting rules Oregon Infrastructure Finance Authority had requested that all cities subcontract their housing rehab programs with a housing authority.  She also noted that the Cities can no longer keep the program money that is under $25,000.  Fortunately the City can spend the approximate $20,000 in the housing rehab fund on the archeological assessment needed for the WWTP upgrade because it meets the program eligibility requirements.  She further noted that she had been in contact with NeighborWorks Umpqua who is a housing authority who could handle the City’s rehab loans.  

 

4.      BOARDS, COMMISSIONS AND COMMITTEES

None

                                                                                               

IX.       CORRESPONDENCE/INFORMATION:

1.    In Packet:

a)      12-13-12 ODOT SCA Program

2.    Available for Inspection:

a)                Seniors Escorting Seniors – November 2012 Report

 

X.        ANNOUNCEMENTS:

1.      Planning Commission Regular Session – Wednesday, January 9, 2013 @ 7:00 p.m.

2.      City Council Regular Session – Tuesday, January 22, 2013 @ 7:00 p.m.

 

XI.       ADJOURNMENT

Being no further business the meeting was adjourned at 8:30 p.m.

 

Submitted by:                                                       Approved by:

 

 

______________________________                ________________________________

Joan Beckman, Deputy Recorder                         Robert A. Deaton, Mayor       

Minutes transcribed from tape.                                                                              

Website Builder