City Council Meeting - Cornelius

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A motion was made by Councilor Schamp to approve Resolution No. 2012-13, a resolution of the City Council of the City of Cornelius, Oregon, hereby certifies that it provides the following municipal services enumerated in Section One, ORS 2021.760 for Fiscal Year 2012-2013 state revenue sharing, seconded by Councilor Crowder. Motion carried 5-0. Ayes: Councilor Heinrich, Councilor Orozco, Councilor Crowder, Councilor Champ, and Mayor Dalin. C. Memorandum of Understanding-Bienestar City Manager Drake reminded that Council had discussed this agreement in Executive Session a few weeks ago, adding that the minor changes that were discussed had been made. The City Attorney did bless the memorandum and City Manager Drake believed the document afforded the City a great deal of protection. Bienestar could determine whether the project was feasible or not. The City’s only liability would be if the project is determined to be feasible and the City failed to follow-up. The City would still protected if the voters did not approve a bond for the library portion. This document created a starting point with Bienestar to see if the City can negotiate a DDA to the satisfaction of both the City and Bienestar for a new library project with affordable housing on top. Councilor Schamp understood the feasibility report would be back by the end of this November so the City was only four months away from having some idea of where the project was headed. City Manager Drake said that was correct. City staff was meeting every two weeks with Bienestar and he believed they will get to a decision on time. No timeframe had been determined yet for going to the voters, but Staff would ensure the Council was comfortable with the schedule. If the City had a successful DDA by November or December, the City could go to the voters in the spring, or wait and do a longer selling job and afford more transparency by going to the voters the following November. The key would be to have sufficient time to tell the story. He was not sure May would afford enough time. Mayor Dalin believed this was a great project for the city and downtown Cornelius. He realized it would take some time to get the ball rolling and he is very happy to be working with a private partnership. The story about how the City was working to minimize public costs was important. A motion was made by Councilor Crowder to approve the Memorandum of Understanding with Bienestar Inc. and instruct Staff to develop a DDA for the joint construction of the City library and affordable housing project, seconded by Councilor Orozco. Motion carried 5-0. Ayes: Councilor Heinrich, Councilor Orozco, Councilor Crowder, Councilor Champ, and Mayor Dalin. D. Waiver of Permit Fees -Veterans Memorial Park Planning Manager, Dick Reynolds, presented the Staff report about waiving the fees associated with the development of Veterans Memorial Park. City Staff believed the park would benefit all citizens of Cornelius and the surrounding area, but only Council had the authority to waive fees. The application forms were provided to show the amount of the fees. Cornelius City Council Minutes-June 18, 2012 Page 4 of 9
Councilor Schamp noted that the work done by citizens in concert with Staff has been remarkable. He agreed there was a public good and benefit to waiving the fees. Mayor Dalin believed it was a great project, adding that Forest Grove has waived fees for Eagle Scouts who make structural improvements to the Skate Park and dog park. He believed Cornelius has done that with community benefit projects in the past. A motion was made Councilor Schamp to waive the fees associated with the construction of the approved site plan of Veterans Memorial Park one time, and the fee waiver not to exceed $900, seconded by Councilor Heinrich. Motion carried 5-0. Ayes: Councilor Heinrich, Councilor Orozco, Councilor Crowder, Councilor Champ, and Mayor Dalin. E. Resolution No. 2012-14 Utility Rates Ellie Jones, Accounting Manager, presented Staff report regarding the resolution, noting that Staff reviews the utility rates annually and changes usually are effective July 1. Staff has analyzed the water, sewer, storm and general service fee. The water rate will remain at the same with the City absorbing the 9.5 percent increase from the City of Hillsboro, which was mostly due to the delay in capital projects. Once those projects begin, the City may need to increase the water fees. Clean Water Service is increasing the sewer rate by a net of about 3.69 percent, which includes both their flat fee and percentage increases. The surface water management is going up 50 cents an ESU. The sewer SDC is going up 1.65 per ESU. She estimated the changes would result in a few dollars increase to the customer per month dependent upon usage. Councilor Schamp understood no one wanted an almost 10 percent increase in their water bill, but the City absorbed a significant increase last year and if the City was doing it again this year, the bill was going to come due at some point. He asked whether it would come due incrementally or in one big amount later. City Manager Drake said that was a good question, noting that Ms. Jones had argued to keep it flat. The City has deferred any major capital costs the last couple of years, including $2 million for a new reservoir plus design for at least two years, so the City has not needed the additional funds from Cornelius citizens. The rate would not increase later. This increase was a good decision, because the City had not expended the money that was planned for capital projects. Council would not see a huge increase because of this in the future. It has been deferred because the money collected based on the water rate study was not expended. He clarified he was not saying that the future capital expenditure was not needed, but that the City had not had to spend the money. The expenditure was delayed for a year, but had been collecting money and setting aside. The City’s large contingency was waiting to be used for the design and construction of the water reservoir. The rate increase was not needed this last year because the City did not have to spend the money. A higher rate increase would come when the City actually builds the new reservoir or drill an ASR well. Councilor Schamp responded that in his experience, he would rather deal with several little increases than one great big increase that had been building over time and would result in outrage from the citizens. City Manager Drake agreed, noting that build up was part of Staff’s Cornelius City Council Minutes-June 18, 2012 Page 5 of 9
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Page 14 and 15: A motion was made by Councilor Hein
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Page 22 and 23: Dave Schamp was sworn in by City Re
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City Council Meeting - Cornelius

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