BEAVERTON CITY COUNCIL
REGULAR MEETING
DECEMBER 15, 2003

CALL TO ORDER:

The Regular Meeting of the Beaverton City Council was called to order by Mayor Rob Drake in the Forrest C. Soth City Council Chamber, 4755 SW Griffith Drive, Beaverton, Oregon, on Monday, December 15, 2003, at 6:35 p.m.

ROLL CALL:

Present were Mayor Drake, Couns. Betty Bode, Dennis Doyle, Fred Ruby, Forrest Soth and Cathy Stanton. Also present were Chief of Staff Linda Adlard, City Attorney Alan Rappleyea, Finance Director Patrick O'Claire, Community Development Director Joe Grillo, Engineering Director Tom Ramisch, Operations/Maintenance Director Gary Brentano, Library Director Ed House, Human Resource Services Manager Nancy Bates, Police Chief David Bishop, Traffic Engineer Randy Wooley, Assistant Finance Director Shirley Baron-Kelly, Senior Accountant Faye Rhea and City Recorder Sue Nelson.

PRESENTATIONS:

03266 - Presentation of Shields and Swearing In of Newly-Appointed Captain, Lieutenant and Sergeant to the Beaverton Police Department

Mayor Drake welcomed the new officers to the City and formally recognized those promoted within the City. He thanked all the police officers for their excellent service; they were available 24-hours a day, seven days a week. He asked the Police Chief to present the shields. Police Chief Dave Bishop recognized Police Captain Wes Ervin for his service and explained Ervin was retiring at the end of December. He stated Ervin had been an excellent police officer for the last 25 years and was an asset to the agency. Coun. Bode paid tribute to Captain Ervin, stating he was an individual of incredible character as an officer and a gentleman. She said he contributed greatly to the fabric of the community and the Council recognized the contributions he made. She thanked Ervin and his family, noting the City, the Council and the citizens appreciated his years of service. She presented a bouquet of roses to Mrs. Ervin.
Bishop swore in the officers and presented the shields to: Captain Christopher Gibson, Lieutenant Dean Meisner and Sergeant Matthew Condon. He thanked the officer’s families for their support.
03267 Presentation of the Oregon Governor’s Council on Physical Fitness and Sports Fitness Leadership Award – Mayor’s Certificate

Mayor Drake explained every year the League of Oregon Cities invited the mayors to nominate citizens to receive this Oregon Fitness Award. He explained this year’s award recipient was nominated by the Tualatin Hills Park & Recreation District (THPRD) and was being recognized for his outstanding work with Oregon youth. He introduced Ron Willoughby, THPRD Manager.

General Manager Ron Willoughby, THPRD, introduced Mr. Fritz Page, the recipient of the Oregon Governor’s Council on Physical Fitness and Sports Leadership Award. He explained Page had been a volunteer who worked with youth for over thirty years. He said he coached baseball and basketball and served as League Officer for both agencies. He said Page had an excellent method of working with people and he worked hard to build character in the community’s youth and develop good citizens.

Fritz Page stated he was overwhelmed by the award and said he appreciated everyone’s participation in it. He thanked everyone for the award.

Mayor Drake noted Page was an outstanding coach and a great inspiration to the youth. He presented a certificate signed by the governor. He thanked Page for his work.

03268 - Presentation of the Certificate of Achievement for Excellence in Financial Reporting and the Award of Financial Reporting Achievement to Faye Rea for the City’s FY 2001-02 Comprehensive Annual Financial Report

Mayor Drake explained the Certificate of Achievement for Excellence in Financial Reporting was an important achievement in the world of government finance.

Finance Director Patrick O’Claire introduced Senior Accountant Faye Rhea, the winner of the Certificate of Achievement. He explained this was the highest recognition awarded a government for its financial reporting. He noted this was the 24th consecutive year the City achieved this certification.

Mayor Drake presented the Certificate of Achievement to Ms. Rhea and thanked her for her excellent work.

CITIZEN COMMUNICATIONS:

Mayor Drake announced that Boy Scouts from Troop 124, Beaverton, were in the audience.

Scout Jeffrey Rosman said they were working towards their Communication Merit Badge.

Henry Kane, Beaverton, said Agenda Bill 03275, that authorized the Mayor to award a contract for construction of a fluoride feed facility project, was premature. He said there was nothing in the record that indicated the dosage and the fluoride compound to be used and he did not see how the contract could be awarded without knowing these two factors. Kane added he was concerned about the public policy implications of authorizing the Mayor to sign a contract, when the Council did not know who the lowest bidder was and when it appeared the amount appropriated was less than the amount of the lowest bid. He said he believed the Council should be informed about the lowest bidder and the difference in the appropriation, if the bid was higher than the engineering estimate of $600,000. He suggested that when the bids were opened, the Council be given an opportunity to discuss the results for he did not want the Council bypassed.

COUNCIL ITEMS:

Coun. Soth reported the annual meeting of the National League of Cities was held last week in Nashville, Tennessee. He said it was a successful conference and he was pleased to report he would be reappointed as the Vice Chair of the Finance Administration and Intergovernmental Relations Committee for 2004.

Coun. Stanton said she attended the conference and there was a bulletin board that displayed a message to the federal legislators that said the best way to use federal dollars was to invest in local communities. She said they all signed the board as a commitment to lobby their legislators regarding unfunded mandates. She said it was heartening to see all those who signed the message.

Coun. Doyle thanked those who attended the Police Activities League (PAL) auction benefit Friday night. He said the function was a success and people reacted positively to the need. He noted PAL also had a “Giving Tree” in the City Hall lobby.

STAFF ITEMS:

Finance Director Patrick O’Claire said he distributed to the Council a memo regarding the bond sale. He said the bond sale occurred this past Wednesday and it went well. He said the City ended up with a net present value savings of 9.08% and saved in debt service over the old bond issue about $686,000 in interest costs. He said all the bonds were sold to businesses or individuals in Oregon to take advantage of the double tax benefit of both Federal and State tax exemption for this bond sale. He said the settlement date was set for January 6, 2004, and the City would receive about $2.9 million for its construction campaign.

Coun. Stanton asked about the City’s bond rating.

O’Claire explained the City received two bond ratings: Moody’s rated the City at A2 and Standard & Poor’s rated the City at A+. He added the City had an insured rating of Triple A.

Coun. Stanton thanked him and said she felt it was important to let the citizens know the City worked hard to manage its funds wisely, which was reflected in the City’s bond ratings.

CONSENT AGENDA:

Coun. Doyle MOVED, SECONDED by Coun. Soth that the Consent Agenda be approved as follows:

Minutes of the Joint Meeting of November 17, 2003 with the Tualatin Valley Water District, the Regular Meeting of November 17, 2003, the Special Meeting of November 20, 2003, and the Regular Meeting of December 1, 2003

03269 - Boards and Commissions Appointments

03270 - Liquor License Application: New Outlet: Tanya’s European Deli

03271 - Traffic Commission Issues No. TC 533-537

03272 - Authorize the Mayor to Sign an Annexation Agreement for 12345 NW Barnes Road

03273 - Classification Review - Community Programs and Transfer Resolution (Resolution No. 3743)

03274 - Authorization for New Police Captain and Two New Police Officers and Transfer Resolution (Resolution No. 3744)

Contract Review Board:

03275 - Authorization for Mayor to Award Contract for Construction of Fluoride Feed Facility Project

03276 - Sanitary Sewer Collection System Master Plan – Expanded Study Area – Consultant Contract Award

03277 - Contract Change Order – Authorization to Increase the Contract Amount for Development Review Services Provided by Spencer & Kupper

Coun. Stanton said she had minor corrections to the minutes of the Regular Meeting of November 17, 2003, which she gave to the City Recorder.

Coun. Bode said she would abstain from voting on the minutes of December 1, 2003.

Question called on the motion. Couns. Bode, Doyle, Ruby, Soth and Stanton voting AYE, the MOTION CARRIED unanimously. (5:0) Coun. Bode abstained from voting on the December 1, 2003, minutes, as she was not at that meeting.

PUBLIC HEARING:

03278 - Proposed Water Consumption Rate Increase for Operating the City’s Water System (Resolution No. 3745)

O’Claire explained this was a proposed water rate increase of 1.7% for a single family residence that consumed eight units of water per month; this equaled a $2.88 annual increase to their water cost. He said this rate increase started two years ago through the budget process and he reviewed the history of the rate increases from 1993 through 1998. He noted the rate was being increased from $1.76 to $1.79. He said this helped the City in achieving its bond rating.

Coun. Soth asked if the increase would take care of the capital projects contemplated by the Joint Water Commission (JWC).

O’Claire replied that Wednesday’s bond issue provided $2.9 million worth of capital for the City’s projects and a portion of the Fernhill Reservoir. He said it would not pay for the construction costs of the reservoir, which would be funded out of SDC’s from current and future revenues. He said the additional JWC projects scheduled for FY 2007-08 would be funded by the bond issue coming in 2006. He said the City had a finite level of resources and the City would have to choose at what level to participate in the JWC projects, based on those cash resources.

Coun. Doyle asked if the water rates had stayed the same for a number of years prior to the five-year period where there were significant increases (1993-1998).

O’Claire said there was one large increase in 1992/93 but prior to that the rates had not been raised for over a decade.

Coun. Soth said they had a few rate decreases and then a few years later they had to do the large increase.

Coun. Doyle congratulated the Council and the staff for its management of the water system and bonds which showed that a few dollars invested now, garnered $700,000 in savings over the life of the bond. He added other parts of the country had not taken care of their water resources and they were now facing much higher increases because they had not taken care of their infrastructure.

Coun. Stanton thanked the Mayor for ensuring that development fees and water rates were reviewed and adjusted annually. She said she appreciated the Mayor’s fiscal responsibility and that she was not faced with having to deal with a financial crisis. She also thanked O’Claire for his management.

Mayor Drake noted the City had a great team approach with Council and staff who worked together for financial stability.

Coun. Stanton asked if a notice would go out with the water bills to advise citizens of the increase.

O’Claire explained the notice would go out with the January utility bills. He added this month was the first issuance of the utility bills with the new billing stock, which allowed them to take advantage of lock box processing technology.

Mayor Drake opened the public hearing at 7:25 p.m.

Richard Crimi, Beaverton, said he opposed the water rate increase because of costs associated with water fluoridation. He said in the voter’s pamphlet from last November, the City projected that water rates would not need to be increased to be able to fluoridate. He said that was reiterated in the November 17, 2003, Council minutes. He said at that meeting the annual cost estimate for sodium fluoride was $67,000. He questioned where the funds for chemicals came from if not from water charges. He referred to an August 5, 2002, memo from Tom Ramisch and Dave Winship and said the cost for fluoridation in that memo started at $140,000. He said the Fiscal Year 2003-04 Budget showed this water rate increase would generate $138,000 per year. He said the 2003-04 Budget identified an increase associated with materials and services for fluoridation; $20,000 was referenced in the proposed budget. He asked if that was now $67,000. He added the $67,000 rate was close to what was expected to come in the remainder of this fiscal year under the new rate increase. He said the annual cost of the fluoride might be viewed as a small amount, but the implementation cost was not. He noted the construction costs were estimated to be $426,000 and the true price tag was approaching $1 million. He said the citizens had not known this when they voted last year; instead they were told to not expect a water rate increase. He said he wondered how the majority would vote now. He concluded by asking what the City would say now regarding the fluoridation cost and the water rate increase.

There was no one else who wished to testify.

Mayor Drake closed the public hearing at 7:35 p.m.

Coun. Soth MOVED, SECONDED by Coun. Ruby, that Council approve Agenda Bill 03278 and the adoption of Resolution No. 3745, A Resolution Establishing a New Water Consumption Rate for the City of Beaverton, Repealing Resolution 3696.

Coun. Soth explained this was in line with what the City had previously done several years ago and was in line with Council direction to do rate increases incrementally, in smaller amounts, rather than the larger increases coming at one time. He said he was comfortable with this action and that he appreciated Crimi’s comments.

Coun. Stanton said she would support the motion although she would appreciate Mr. Crimi’s concerns be addressed. She explained she believed this increase was not about fluoridation but rather the general water supply service provided to all citizens. Question called on the motion. Couns. Bode, Doyle, Ruby, Soth and Stanton voting AYE, the MOTION CARRIED unanimously. (5:0)

ORDINANCES:

Suspend Rules:

Coun. Soth MOVED, SECONDED by Coun. Stanton, that the rules be suspended, and that the ordinances embodied in Agenda Bills 03257, 03279, 03280 and 03281, be read for the first time by title only at this meeting, and for the second time by title only at the next regular meeting of the Council. Couns. Bode, Doyle, Soth, Ruby and Stanton voting AYE, the MOTION CARRIED unanimously. (5:0)

First Reading:

Rappleyea read the following ordinance for the first time by title only:

03257 - An Ordinance Annexing Property Generally Located at 8655 SW Canyon Lane to the City of Beaverton. Expedited Annexation ANX 2003-0006 (Ordinance No. 4278)

03279 - An Ordinance Annexing Property Located at 690 SW 173rd Avenue to the City of Beaverton: Expedited Annexation 2003-0009 (Ordinance No. 4280)

03280 - An Ordinance Amending Ordinance No. 4187, Figure III-1, the Comprehensive Plan Land Use Map and Ordinance No. 2050, the Zoning Map, for Property Located at 690 SW 173rd Avenue; CPA 2003-0013/ ZMA 2003-0016 (Ordinance No. 4281)

03281 - TA 2003-0006 (Application Completeness Text Amendments) (Ordinance No. 4282)

First and Second Reading and Passage:

Suspend Rules:

Coun. Soth MOVED, SECONDED by Coun. Ruby, that the rules be suspended and the ordinance embodied in Agenda Bill 03282 be read for the first time in full at this meeting and for the second time by title only at this same meeting. Couns. Bode, Doyle, Ruby, Stanton and Soth voting AYE, the MOTION CARRIED unanimously. (5:0)

Rappleyea read the following ordinance for the first time in full and for the second time by title only at this same meeting.

03282 - An Ordinance Supplementing Ordinance No. 4270 and Authorizing the Director to Accept Certain Insurance Commitment Letters and to Execute an Insurance Agreement Relating to the Municipal Bond Debt Service Reserve Insurance Policy and a Supplemental Action; and Declaring an Emergency (Ordinance No. 4283)

Coun. Soth MOVED, SECONDED by Coun. Bode, that the ordinance embodied in Agenda Bill 03282 now pass. Roll call vote. Couns. Bode, Doyle, Ruby, Stanton and Soth voting AYE, the MOTION CARRIED unanimously. (5:0)

Coun. Bode thanked the City staff for their excellent work and wished everyone Happy Holidays.

ADJOURNMENT:

There being no further business to come before the Council at this time, the meeting was adjourned at 7:35 p.m.

APPROVAL:

Approved this 5th day of January, 2004.

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Rob Drake, Mayor