City Council - Regular Meeting

Budget committee meeting to order. We request that Claudia do a roll call. Committee member Chisum here. Here. Councelor Chennowith here. Committee member Hunter here. She's here. Did can you make sure you do it on your mic? So here. You guys hear me here? really close. Uh, councelor Benner here. Committee member man here. Councelor Giri. Good evening. Committee member Frost.

She is online but and will be here later. She has raised her hand online. Committee member Frost, I promoted you, so you should be able to speak now. I think she might be driving. Uh, committee member Cunningham or council member Cunningham here. Committee member Ernst. Councelor Takulski here. And it's hot in here. Committee member Harmon Ferry here. Council President Peralta here. Committee member Maxfield here. Mayor Morris

here. Thank you, Claudia. And I should note that I started it at five o'clock. I didn't give you a time. Now, we're going to do the election of the budget committee chairperson at the uh committee member Erns just joined via Zoom, so she is here as well. Perfect. Thank you. Um at the close of the elections, the new chair will preside over the remainder of the budget meeting. So I would at this time like to call for nominations for the chair of the city of Mcbenville budget committee. I'd like to nominate Meredith Maxfield as chair of the budget committee. I have a nomination from councelor pre council president Peralta for Meredith Maxfield.

I'll second. Is that Danny? All those in favor or do you want to do a roll call? Committee member Chisum. I com councelor Chennowith I. Committee member Hunter I. Councelor Benner. I I committee member M. I. Councelor Giri. I. Committee member Frost. I.

Councelor Cunningham. I committee member Ernst. I councelor Tolski. I committee member Harmon Ferry. Hi. Council President Peralta. Yes. Committee member Maxfield. I will abstain. Mayor Morris. I. I'm going to assume she won unanimously. Great. Congratulations. And that was very quick. So I will now turn the floor over to you.

All right. We will move to the consent agenda. Uh we have minutes from last year's May 15th, May 21st, May 22nd, and May 23rd budget committee meetings. On the consent agenda agenda this evening, does anyone wish to pull anything uh from consent? Do I have a motion to approve? So moved. Second. Okay. So that the motion was made by councelor Chennowith and a second by councelor Cunningham. Uh Claudia, can you do a roll call? Committee member Chisum abstain. Councelor Chennowith I. Committee member Hunter

I. Councelor Benner abstain as well. Committee member man abstain. Councelor Giri. Hi. Committee member Frost. I. Councelor Cunningham. Hi. Comm. Committee member Ernst. I. Councelor Tokolski. Hi. Committee member Harmon Ferry. I. Council President Peralta. Yes. Mayor Morris. I. and Chair Maxfield.

I I I think that passed unanimously. Great. Okay. Uh good evening everyone. Before we begin, I'd like to share a few reminders and comments about our process. Um there will be a designated time after each department presentation for questions and comments from the budget committee. So, please hold your questions until the presentation has concluded. When asking a question about a specific item, please reference both the page number and whether you're referring to the physical budget document or the electronic because they have different page numbers and the line item account number so that the staff and the rest of the committee can quickly locate the information you're referring to. Uh during our question and discussion time, you can nod or gesture to me or raise your eyebrows and I'm going to keep a running list and try to keep track in order of as I see you. Um and so then so sometimes you might not know that I have a list of people ahead of you when you get my attention, but I it's it's not a perfect system, but it's the best I can do. Um there's a lot of us, so we can't just speak out. Um, we do not anticipate doing straw polls in this meeting, but I am willing to use them if necessary. Please speak clearly into the microphone. This is a matter of transparency. Um, it's important so our participants joining us over Zoom can hear the discussion and also the record can accurately reflect the conversation. You may continue to submit questions electronically through the link Director Henry emailed earlier. Those questions will be included in more packet addendums. Um, as always, challenge ideas, not individuals. Um, I also want to say how excited I am to have so many fresh faces and opinions here. Um, I I want to encourage you all to speak up. If you need clarification on anything, chances are there are other members of our committee and members of the public

who also have the same question. There's a reason that this committee is not just the city council and the mayor. So, we we are important. I know we don't know as much as they are they do concerning all the financial matters because we aren't paying attention during all the meetings, but we're just as important here. So, please speak up. Um uh thank you all for taking the time to read through the budget materials in advance. Reviewing this budget document is no small task. Thank you for submitting thoughtful questions and coming prepared to this meeting. We're all volunteers and I know your time is just as valuable as anyone else is in the room. And finally, thank you to the city staff. You know, we all know the economy and the rising cost of living continue to make municipal budgets very difficult and these challenges are not unique to McMinnville. We appreciate the tremendous amount of time and effort and care you have put into preparing this budget. So, thank you very much. Um, so if you have any suggestions for alternatives to the budget, please ask for feedback on those ideas. And if there are reductions that you all want to reinstate, please identify additional reductions, reallocations of resources or new revenue to maintain the balanced budget because we must approve a balanced budget during these meetings. Um, now moving on to uh conflict of interest disclosure. Does any committee member need to declare an actual or potential conflict of interest or recuse themselves today?

Zach. Uh, thank you. Um, as I do every year, I would like to disclose potential conflict of interest. My wife Samantha works for the public library. Um, I don't think it affects my ability to weigh in on the budget overall. So, I'm just declaring the potential conflict of interest and um, we'll remain part of the conversation. Thank you. Anyone else? Councelor Chakolski, just like last year, I also um work for multiple departments, have multiple relationships within multiple uh areas of the city, and uh while they're not actual conflicts of interest, I need to disclose them as potential and we'll move forward like that. Thank you. Anyone else?

Okay. Um moving on to the public hearing. I need to read something. Um, state revenue sharing law OS221.770 requires cities to annually pass an ordinance or resolution requesting state revenue sharing money. In order to receive state revenue sharing in 2026 to 2027, a city must have levied property taxes in the preceding year and hold a public hearing before the budget committee to discuss possible uses of the funds and hold a hearing before the city council on the proposed uses of the funds in relation to the entire budget. We will now begin the public hearing process of the agenda. Please, if anyone is here for the public hearing, please first state your name, your first and last name, and the city you reside in for the record and each person testifying will be allotted three minutes for their testimony. Claudia, do we have anyone signed up for the public hearing?

Okay. Oh, Director Henry,

just for the excuse me, just for the record, um I just want to have documented that we are proposing to use the state shared revenue um for the deferred maintenance this year. So, we have included a million dollars in the budget. The state shared revenue is nowhere near a million dollars. It's in the 435,000 range. Um but we would like to propose to put all of that towards the um the deferred maintenance um and use it for for that this year. That's it is included in the general fund. It does not have its own separate account. Um we are required to do this hearing by law in order to receive those funds. Um so just for the record that is how we are submitting it to the state is towards the deferred maintenance. Do we need to approve of that separately from the entire budget?

You do not. We just have to have held this hearing that we're holding now and we will hold one more um at the council level. Oh, okay. Okay.

Oh, did anyone in the room want to testify concerning the shared revenue from the state? I will now turn the time over to finance director Katie Henry to bring up the city's recommendation for POS. Oh, no, I will not. I already did that. Thank you. Um, so I will close the public hearing on the shared revenue from the state. Uh, call on uh, city manager Garvin to present. Thank you, Chair Maxfield, Mayor Morris, Council President, Council, Budget Committee members, and community members. Uh before I get started on the budget message this evening, I wanted to briefly go through some acknowledgements from this process that we've been working on since January. uh specifically finance director Henry uh Crystal and Chris and finance and Scott and Sean and uh is for their work on getting this budget done some of the manual workarounds we had to do um just with the new budget software implementation there was challenges and so we had to make some last minute pivots um and so that was real work that didn't just require them but also took additional work of their their teams and their departments to complete this on time and on target for printing dates and you guys getting it on time and everything else. Uh special appreciation to department directors, managers, supervisors, and staff across the organization as this was a different budget process for them from a software standpoint as well as uh having a new city manager uh created, you know, undoubtedly differences and challenges for them to navigate through. And I

appreciate all of them that leaned into that. Um, and this budget process reflects significant collaboration, thoughtful prioritization, and ongoing efforts to align service expectations with organizational capacity. Um, with that, tonight we present the proposed budget for the city of McMinnville. This budget was developed around three guiding principles: alignment, prioritization, and sustainability. Like communities across Oregon, McMinnville continues to face significant financial pressures, rising operational costs, inflation, increasing demand for services, uncertainty around long-term state and federal funding sources, and growing impacts from unfunded mandates that are continually being placed on local governments. At the same time, our community continues to expect and they deserve strong public safety services, reliable infrastructure, well-maintained parks and public spaces, economic vitality, and high quality of life. Delivering those services has become increasingly expensive with substantial increases in personnel costs, insuranceances of all forms, materials, fuel, and contracted services over the last several years. This proposed budget reflects a deliberate effort by city staff to take a comprehensive look across the organization. Departments were asked to evaluate programs, identify efficiencies, review spending, and look for opportunities to reduce costs wherever possible, no matter how small. You will see those efforts reflected throughout the department presentations that follow over the next few budget meeting evenings. Importantly, this process was not approached as simply balancing a budget for next physical year. We took a longerterm view focused on building a more financially sustainable future for the organization. That included evaluating ongoing expenses previously supported by

one-time ARPA funding and either transitioning those costs into sustainable ongoing funding sources or eliminating them where appropriate. Our goal was to avoid relying on temporary fixes or one-time reserve spending to support ongoing operational expenses. This budget also reflects a broader structural challenge facing cities throughout Oregon where revenue growth often does not keep pace with the increasing cost providing core municipal services. Those realities require difficult conversations, careful prioritization, and strategic long-term planning. Throughout this process, staff remained focused on aligning resources with council and community priorities while maintaining fiscal responsibility necessary to position McMundle for long-term success. I want to thank city staff, department leaders, use the budget committee, and our community partners and residents who continue to stay engaged in this process. McMinnville is a strong community with a bright future, and tonight's proposed budget is intended to help responsibly position us for that future. With that, I'll turn it over to Finance Director Henry, who will go into the financial side of things.

Good evening. And of course, for me, it's exciting to be here. This is I know I'm a glutton for punishment. What can I say? But, um, budget is one of those things that I feel strongly for as a finance director. Um, as the city manager pointed out, we did prepare this budget at the same time while we were implementing a new software. And of course, the first thing I have to say is one thing that didn't quite go well. So, in front of you all, you have the evidence of my humanity. Um, you have a replacement for page 325. They were not done writing the report for the budget document and it was having trouble calculating ending fund balance. All the numbers in your budget have been done correctly. We have done them on spreadsheets and all that. We now have a report that shows it, but at the time of it going to the printer, we did not. So, I apologize. Um, we do not have 22 million or whatever it says in the book. we have the 4,800 which is you know much more in line with what we normally have. So if you could replace those I will replace the packet online as soon as I can. We now have a functioning report. Um for anyone who may be listening online who is vision impaired. If you do need a machine readable version, please contact finance. We're happy to provide you with one. um that piece of the online budget book they have not yet fixed. They're expecting a fix to be out within the next two weeks. Um we spoke to them today. So we apologize that the current one is not and we are actively working on that. So with that there's a little bit more

housekeeping shall I say. We have a lot of new people this year and so I wanted to make sure that we are all aware of the budget process, where we're at in that and what are we doing here, why are we here for these next well for several meetings and and what is our goal and what are our legal responsibilities. So there are nine steps in the budget cycle according to the local budgeting manual. And if you ever have trouble sleeping at night, you can download and print this. It it makes very good. You'll fall asleep really fast. Um it's over aundred pages of the rules of budgeting. So Oregon does not take budgeting lightly. Um but we are on step four of nine. Um which is the budget committee meets and the committee approves the budget. It will then go to council where we will have a budget hearing and then council will then deliberate and adopt a budget. So this first part is where the citizens and each of you who are citizen members of the budget committee get to interface with council and bring your own thoughts, opinions, and you have the same weight in the voting as council does. At the time that it goes to council, council then can decrease the budget, but they cannot increase it more than 10%. Per fund. So that is where we're at in the budget cycle. There is one piece of business that I push every year when I have these meetings. It's something that the state trains on every year and that is that committee members may not discuss or deliberate on the budget outside of a public meeting. That's not just a

quorum. That means that two or three of you cannot go out to coffee and decide how you want to vote or what you want to bring to propose. All discussions on the budget must happen in a public meeting here during these four nights. This is why we have scheduled four nights and not one night. This is where the rubber meets the road. This is where everything comes out. So, I'm just reiterating that it is in the rules, but just so nobody's confused. No meetings about the budget outside of here. You are free to discuss with staff, one budget committee member with staff, but not multiple budget committee members with staff at the same time. Our goals for these meetings. At the end of the meetings, we must have reviewed all the funds. We have to have made any changes in the budget that are deemed necessary by a majority of the committee. So any changes go to the majority and discussions also go to the majority. So if there are only two or three people who want to discuss something, a straw poll, as Meredith mentioned, can be done and if it is voted down, we move on to the next item. We have to have approved a final budget for the city that is balanced and we have to have set and approved the property tax levy for the upcoming year. In your books, page 23 to 72 has a detailed overview. We are not going to spend a ton of time. I'm going to touch on a few things. Um, but if you want a detailed the details of it, feel free to look in the book or for anyone who's online, click on the financial overview section.

There are two sections in the online book. So, first of all, I want to start at the 40,000 foot level. So, we're talking about the city and a lot of people think of the city budget as excuse me as the general fund. We've got a $40 million budget. No, the city has a lot of different areas. And so, I want to propose a first look that isn't looking at our funds, but it's looking at what do we do. So we have on this graph public works which is $ 32.9 million in work that they do. We have public safety 14.3 million. Cultural parks and wreck at 6 million, community development at 5.4 and admin at 15.5. I will tell you that that admin number has a lot of transfers and um other funds that are sent out to other entities as well. It's not all people being paid that. So, that's what we're looking at. And if you look at your your picture, that's kind of how we're going to structure these meetings. It's going to be a little bit different than what you've seen before in that we if you follow the pages in the budget book, they don't necessarily go sequentially in how how we work. That's not exactly how we work. So we've divided the sessions this time into more workg groupoup type things. So tonight what you'll see is the cultural parks and wreck. So you we'll talk about library, we'll talk about parks and recreation. That's what we'll be focusing on this evening. Then on Thursday we're going to focus on the green ones on there. So public works and community development. If we go through

those and there aren't questions, we'll dive right into the blue ones. So, um, this isn't that we have to do just one one night and another. We're we're ready to do all of it. That's just the order that we're going to do them in. And that order is spelled out in your packet so that you know. And it will involve a little jumping around of pages. And I know that gets confusing. We've tried to put little notes on slides and in your packet and to help guide you on which pages we're on, but I think it will give a better a better understanding of how we work and how our funds work together because sometimes we even have individual invoices or individual people who are split between multiple funds because what they do actually serves these these multiple funds. And so I'm hoping this can give you a slightly different view of what we do and and how it's split out in our budget. This is the view at the fund level.

And I did not put all where where are these charts?

These charts are not necessarily in your book. This is this is me giving you a a different overview than what you have available. Um, so if we look at the funds, because we do have to look at all the funds, you'll see that the general fund is 30% of our budget. And this is why most of our time is going to be spent on the general fund. And in a minute, we'll talk a little bit about the different sources of revenues and why this is so important. We have the wastewater fund that's 40%. Um, and that is a utility. So it has utilities fees that pay for its expenditures and then you have all the other funds which we have 20 funds and so you've got two that make up the majority and then all these other ones and so you will hear about them intermixed with the others that go along with whichever department they're in. So that's what will be different than than we've done previously. So in the general fund, this is how the the expenses play out in the individual departments. You can see that the split for public works is significantly smaller in the general fund than it is the city overall. And you can see that cultural parks and wreck is much bigger, as is public safety. Those two are primarily financed with property taxes. So there aren't there aren't fees to pay for them. There aren't gas taxes. There isn't any other money. A few grants maybe here and there, but other than that, it's mainly property taxes. So that's where you see the difference between the allocations. Now, if we look at general fund revenues

now, um, councelor Benner, this one is in your book. So, it's just at the beginning of the I think it's 30 or somewhere in there. Um, we see that property taxes make up 56% of of our revenues. Um, and here is where I want to take a slight hop outside of what you have in front of you and your books. And I want to make sure that everyone understands how our transparency tool works and how you can dig into some of these numbers online, how both you and the public can can see what makes it up if you're curious about something. So, we're going to see how well I can juggle two different things on my computer. This is the next test of my humanity. Okay. So, on the city's website, we have open book and there's a link for this on through finance and let me get Oh, it's just it's just suggesting it right now in our overall banner here. We've got the proposed budget drill down or if you scroll down, you've got a few different different cards that have different things that you can drill down into this. This one here is the budget book online. So that will give you an online version of the book that you have in front of you. But this one here that says proposed budget drill down, I want to show you how we could look at those revenues for example

through this lens. So I'm going to scroll down and we can see that all of the revenue for this all of the um proposed budget is at 160 million. So, we're just click on revenues. And now we're just looking at the revenues for the city. And we can see that the current year budget is at 75.8 million. Now, if we click into the general fund, it now has it broken down for the different departments and how much revenue they have. Each of these is a different year. So, we have the current year budget, the previous year budget, and previous year two actual. So previous year two being the 25 24 25 actual. Now you might want to look at this as a percentage instead. And so you could see it by department as a percentage. You could however also look at this. We could drill into the classifications. Let's say you were more interested in finding out what was in that licenses and permits. We just looked at that split and you were like, is that building permits? Is that you know what what makes that up? So up here in the explore by there are different ways you can drill through. And if there's a different way you want to drill through, send me an email because I will build it for you. Um, but classification is the one that gets us to those those types of breakdowns. So now we've got property taxes, charges for services. If I look at this under the percentage, going to scroll down a little bit. We

can see our various types. And here I can see licenses and permits. So if I hover over it, it will show me which portion of that pie is that type of revenue. But now you want to know more. You want to know what makes this up. So you can click on licenses and permits and it will take it down. And here we've got it into different funds. So we say we we're just focusing on the general fund. And so now it breaks it down into the individual accounts. And I apologize that this isn't easier to see on these screens. On your own computer or on your phone, you can you can see it and drill through. So now you have a variety all of the different accounts with their names. And so you can see that the blue part of this licenses and permits this very large piece is actually the payments in lie of tax from the wastewater and this red part is franchise fees from the wastewater. So in effect almost 75% of those licenses and fees are coming from wastewater. So keep that in mind as we're talking about things and when you're making suggestions to how could we increase what we're getting from licenses and permits for example. This isn't what people are paying for a permit. It's important to understand that there are different things in these categories than what you might first think from the name of that. So that's just one example. This tool is out there. It is updated every single night. That was a long long process to get that done, but it works now. So, we're very pleased with that. Um, and I do hope to expand out this tool and make more available as

time allows. But for right now, at least we have the budget and we have the actuals. And in the actuals, you can you can drill through and you can see how the budget to actual is going in the various departments and things like that. But I wanted to make sure to show you that so that as you're preparing for next meeting, for example, you can look at it through that lens. Some people work well with a paper binder, but some people like to visualize the data. And so feel free to do that. And you can send questions, you can contact me. I'm happy to jump online and do some with you if any of you would like to do that. So with that said, we'll go back to our presentation. Okay, we'll go fast back to our presentation and we'll go to the expenditures by classification. Personnel services makes up 66% of the general fund. So that is obviously a very large part of this budget is the personnel services. And so I'm going to take a step back here and I'm going to turn it over to Vicki so that she can give us an update on personnel services in the budget. Thanks Katie. I first want to note by saying that the temperature in the room is wonderful. So thank you. Uh all right. So tonight I am presenting the overview for the personnel services but I want to note that uh the specific questions about FTE changes that are included in this overview will be reviewed by each of the department directors as they present their budget. So this is just an overview of the total changes uh in the proposed budget. So as Katie mentioned personnel services are a large portion of our budget. Uh part of

that is about 20 p 20% of that goes to PERS and about 13% goes to um in medical insurance and then another 6% for additional fringe benefits. The proposed budget includes a 2.7% cost of living increase. Uh this follows the CPIW index. This is a standard that we've used in the past and we recommend continuing in order to stay competitive in the uh job market. The budget also reflects uh continued increases in PERS and um tier one and tier 2 and OBSER employer contribution rates. Uh the workforce is shifting um with more employees in the OPSER classification. Currently 53% of our employees are OPSER members while 28% remain in tier one tier 2. Those tier one and tier two rates are stabilizing, but the OBSER rate ops rates continue to trend upwards. The medical insurance costs uh also continue to rise. For calendar year 2027, the police uh union medical premiums are projected to increase by approximately 8.5%. for general service employees. Uh regions premiums, which is the bulk of our general service employees, uh are projected to increase by about 13.6% and uh for those general service employees that select Kaiser, the increases are projected to be about 5.5%. Um, as a side note, the cost of living increase for our police union is projected at 3% 3% which is um in alignment with our agreed upon CBA. Uh, Katie, can you move to the next slide, please? Uh, so the proposed budget reflects a net increase of 1.12 FTE overall. As I mentioned, several departments have shifted FTE to

strengthen service delivery while maintaining a more sustainable financial structure, which includes moving some FTE expenses to additional funding sources away from the general fund. These proposals targeted staffing adjustment. These proposed targeted staffing adjustments intend to uh maintain core service levels and position the organization for long-term sustainability. The overall result uh with these shifts will result in a 1.08 08 reduction to the general fund FTE but again a 1.12 FTE increase overall it so with all of this what does that mean and maybe I should do a drum roll here because I think this is really the question I debated where to put this slide and I thought you know what bottom line up front let's just real quick talk about what does this proposed budget give you in terms of ending fund balance so that we can put this right on the table. You can know what we worked hard to bring to you and then we'll go into the details of everything but you'll know what you have right up front. So what we're proposing to you is a total revenues. This is general fund. I apologize I didn't put it on the slide there but this is general fund total revenues 33277896 and total expenses 33,142847 and if you're looking in your book and you're looking at resources don't equal that and requirements don't equal that. No, they don't. So this is pure current year operating money in and operating money out. So I this does not include your fund balances. So the current year net revenue is

135,049. That means that the budget as we have presented it to you is not a deficit budget. It does not use fund balances and it saves 135,000 for use in another year. We highly recommend that you not try to use that and we'll go through that the reasons for that in the next two to three minutes. This gives you proposed reserves of 6.3 million in your numbers. When you're trying to figure out what adds up to that, it's the contingency of 1.5 million and your unappropriated ending fund balance. Those two numbers added together give you your proposed reserves. This makes up 2.61 months of operating expenses. We do have the more complex sheet in the in the book that has all of the details from previous years. Um the previous slide is just I like it with less numbers but but we do have all the page there when if you're looking for it. Um so what are the assumptions that we used for the future? because we always look at the five-year projections. And so this looks this looks good. This looks really nice. We've we've worked really hard. So projecting into the future, you should know that this assumes that we bring online the last 50 cents of the property tax in fiscal year 2627. So that question of property tax that we

levy, it brings it up to the maximum amount. It has an increase of 4% per year after the current year for property taxes. Listened to what you said, councelor Chennowith, looked at our rates. I know it's not as high as you might think, but it's higher than the 3% we've been using. Okay. So, been doing some more detailed digging into our into our increases and our assumptions. We've used an inflationary rate of 3% per year for our expenses. There is a step up increase of transient lodging tax. Um most of you may know that the um state has changed the law or is in the process of changing the law. Not sure where it's at exactly, but um from the required 3070 split that is going on right now where 70% goes to only tourism related activities. So we send it to visit McMinnville and that will be changing to a 50/50 required. Um our city manager is working on the details of how that transition will happen. Um but it would be a it would happen over time um with our our friends over at Visit McGonville. Um the water and light revenues, we have a 3% per year increase. Once we have those discussions on the fees with at the council level, um these that may go up more, but since we haven't discussed the fee increases, I didn't have any other number to use for that. Um this also assumes that we add 1 million each year to the capital reserve

and that capital maintenance remains only partially funded at 1 million a year. So the recommendation was significantly more than that. Giov will touch on that when he talks to us about public works. Um but in this model it does not assume that we do all of the deferred maintenance right up front. It assumes that we do 1 million per year in the maintenance and 1 million additional to the capital reserve. It assumes that the fleet is funded at 300,000 per year. That does not account for new vehicles for everything, but the city of McMinnville has been very diligent at getting pre-owned vehicles, especially from Macwater and Light and other entities. And so we felt comfortable bringing it to 300,000 per year. Um, and when you see the next graph, when you see the big blip in FY28, that's the sale of um, the property of Northwest Rubber property. So, I don't want everyone to wonder. Um, there's an expense, which is it going out to the URA, and a revenue, which is the money coming in. So, you will see that on that. So, what does it look like? Here is the five-year trend. If the budget goes the way that we have presented it to you today, um you can see that in 2026, which is the year that we're currently in, the expenses exceed the revenues by quite a bit. Then we have the 27 which we're bringing to you, which is balanced. You can't see a 100,000, but the revenues are actually

above by that 100,000. And then in 29 they stay ahead and they stay ahead through 2031 but just barely. Now this seems like it's great. The sky is rosy. Everything's great. But one thing I want you to remember is that when we set aside money for capital to the capital reserve, it doesn't affect our expenses. So it doesn't show up in that red line, but it comes out of our fund balance anyway. So here is a graph of the fund balances. The green is the ARPA. The brown is the dedicated capital and the blue is the undeedicated and that line is the minimum if we're assuming with the assumptions that I have just given you. If we continue to add the million per year to the capital in 2029 we break even. Then in 2030 we start to fall behind and in 2031 we start to fall behind. This is why I've said that we don't suggest using that extra. that extra was planned for being in the clear through 29 and because there are enough unknowns after that, I personally feel comfortable proposing that um and then adjustments can be made to, you know, to adapt to growth in the city and all of those other things that are unknown right now.

So any discussion or questions on the bottom line or this overall before we move to departmental presentation? Any questions or comments? Highle overall budget message. Uh, councelor Chennowith, you did say we could use eyebrows, so I'm trying to use eyebrows. Okay, you might need to wave your hand.

Um, yeah, one, and I might have missed it because I I will admit to being a bit distracted during a portion of you're going through the assumptions, but one of the assumptions that I pick up also that you has been made is that PERS uh stays relatively constant um over the course of this projection in terms of percentage of cost. Is that is that an accurate read on this? That is that is accurate.

Okay. Thank you. I think that's important because uh we are our PERS costs are actuarial based with with the requirement that we meet 8% increases per year for tier one. Um and when we have um events that are outside of our control such as what we're experiencing this year, um we don't know at the end of the year how that's going to impact the next year's budget. This is true.

So I think it's important that we understand that there is as rosy as this looks comparative to some things I've seen through the years of being on on in this seat um there is always that potential out there for a rather serious uh negative impact. So thank you.

Anyone else? Okay, I think we are ready to turn the time over to Director Berg. Chair Maxfield, are we are we again holding questions until the end of their presentation? Yes, she'll have a slide at the end of her presentation. Same thing. Jenny are director Burke, are you going to have a slide at the end of the library and then also at the end of Parks and New?

Just at the end of the two presentations. Um, I won't leave this on the whole time, but I did feel like I I was trying to figure out thetick, the joke, the And one is that like the temperature feels like a disco in here. It's very hot. If like might be not um and then also um I thought the colors kind of matched Katie's uh pie charts a little bit too. Uh and I knew that you all um well, many of you like the library of things. So, if anybody wants to check this out from the library, you can. One of you should really dance. One of you should really dance.

It's also um I thought about also doing a get the wiggles out thing, which is what we do at story time at the library, but thought that might go a little too far. Okay. Hi, I'm Jenny Berg. I am here tonight. You'll be hearing from me about the library and the parks and recreation departments. Um, thank you all very much for your time and attention during these budget meetings. Um, I know it's all volunteer and it's a lot of work and I really appreciate it. We all appreciate it quite a bit. Um, I am going to start my timer here. Okay, so I'm going to start with the library and hopefully this Okay. Okay. So, um, many of you probably know there's a strong correlation between reading ability and education success. And reading enjoyment and behavior appear to be key mechanisms in this relationship. Readers earn more money, are less likely to be incarcerated, likely to be physically and emotionally healthier, and report higher levels of psychological satisfaction. Studies show that people who read books, actual books, live longer. And of course, you all know that the library is more than just books. We focus on digital literacy, financial, health, media, and cultural lit literacy as well as reading literacy. Uh I don't have a lot to report on the budget. We um as most of you know took some pretty serious decreases last year. Um the decrease of 2.2 FTE since the 2025 due to those budget reductions. library hours

decreased by five since 2025 to 39 hours open with two days closed instead of the um one Monday that has been ongoing for many years. Um what this affects and I just put a July through December here because we don't have the full year of 2026 statistics but we had an 11.6% 6% decrease in FTE. Um circulation had a.35% decrease. Um a lot of this we see in uh increase in digital um checkouts, decrease in physical checkouts because there's less hours for li for people to come in and actually make those checkouts at the library. Um computer use has decreased by 14.5%. again that um I attribute that to we're closed, people can't come in and use the computers and an 11.2% decrease in open hours. Oh, thanks Claudia. Um, and just uh I always like to point out the amount of support that we get from the friends of the library and library foundation. They contribute funds for books, programs, and specific staffing needs. And you see that in the budgets. You can you can see how much money they're um contributing. And I I will also say that that is not all the money that they're contributing. We run um some of their funds through the um city budget and then they make a reimbursement because um it's just easier for buying books and um that type of thing. But they also will just pay from their funds directly for some of our programs and um materials and improvements to the library.

This um has always been the the intention of the friends of the library and the library foundation is to be a sort of um whipped cream and cherry on top of the Sunday the additional improvements. Um you know I look at things like okay well we have tables but we want nicer tables or different tables then that's the sort of thing that the friends of the library or library foundation will um pay for. uh and also some very specific programs. Um and then in the friends of the library and library foundation, it also um some of those dollars represent um grant dollars that we've received for specific programs. Um, and then just a fun little fact, the we received this year a gift from the Carnegie Foundation. And this gift was given to all libraries in the United States that are still that were built by the Carnegie by Carnegie and are still operating as libraries. So they did um I think it was their hundth or maybe 150th anniversary of the Carnegie Foundation and they gave all the libraries um $10,000. So we'll be looking at where we're going to use that this year. Probably something to improve that Carnegie building. So, this year was mostly hold the line, but our goal is to get back to the six days a week of open hours in upcoming years. And um the that's something that I uh I'll be looking into further in the next in the next year to see what what the um appetite from the community is, what they're looking for. I've heard anecdotal feedback from community that they're they're looking for that they're interested in that but we need something

more data driven. Um and uh as you well the the library and the parks and recreation departments all focus on socialization and gathering as well as many other things. But I wanted to pull these things forward because I think they are um somewhat unique to these particular departments and socialization has been shown to benefit cognition, mental health, stress reduction and longevity. And the US surgeon general in 2023 said that loneliness is as bad for health as smoking 15 cigarettes a day. And so to have these and as you know as things move more and more um technology based and online to have these um community spaces where people can gather uh is very important. And studies have shown even that just the um uh even uh more incidental interactions with people can even that can even have a strong um impact on mental health. So of course we also know that exercise and activity are beneficial for our physical health. Exercise has also been shown to improve one's mood, sharpen one's mind, benefit sleep and lower the risk of illness and I use that as a introduction into the parks and recreation department. the um just going to touch briefly on some this also is a not a lot of changes here in this budget um except for aquatic center which um I have Josh Rooster here to talk about. He'll he'll he's going to um bring come in on at the end. Um the there's a little bit of um change in administration that's specifically focused on the fact that

you will have a new parks and recreation director in the next um in the upcoming months. And it feel free to not hold your applause if you um the uh and so there's a little bit of money money there for training if if uh um you know additional training is needed for that uh new director. Um the community center facility rental revenue has decreased and as most of you if not all of you know that the elevator was down for much of last fiscal year. it is up and running now. Uh but there were a lot of uh organizations who had been working had been meeting at the community center on a regular basis that had to move their meetings elsewhere. Some of those some of those meetings and some of those organizations u move to the senior center. So we see that in the budget as well and maintenance and rental increases are going up. And I think that's in part due to inflation, but it's also due to the fact that there's increased costs for running an older facility. And as I mentioned, the elevator upgrade did occur in 2026. Next slide. Thanks, Claudia. So, recreation sports, there was a small decrease in personnel services due to an un unfilled administrative support position. senior center. The um one of the things that you'll see in the budget is a um program coordinator. Uh one of the staff members is being moved from a um administrative specialist to a program coordinator. This was a position that was at the senior center prior to CO and then of course with the closures of COVID um

that position was eliminated. Well, now they're finding a lot of um returning people coming to the senior center. They've got um re-engagement there and people looking for more programming opportunities. And so we're bringing that programming coordinator back. Uh that will not only increase participation and increase that um benefits of of not having isolation in in that community, it will also generate additional revenue. And then you'll also see a replacement of the buckled flooring in the senior center bathrooms for safety reasons. And at this point in time, I am going to turn it over to the aquatic center manager, Josh Rooster.

Um, and we would also like to thank Jenny for serving as our uh parks and recreation director. She's been very supportive to all of us and has been a lot of work, not only to work on, I'm sure, the library budget, but also ours. Um so the aquatic center uh we've also been building back since co and um a lot of that has been our staffing. In 2025 of April when I started last year the Oregon Health Authority adopted the model aquatic health code into uh the the code of the authority for swimming pools. And that has required a few things of us uh including adding additional staff to make sure that lifeguards receive appropriate breaks from surveillance. So lifeguards when they are watching the pool, they're watching the entire body of the pool and looking back and forth for uh long amounts of time. And to make sure that they are uh their eyes are appropriately rested so that they continue to maintain that focus um they require breaks from surveillance. That isn't a break from work. It's a break from constantly looking back and forth. So those those weren't in place as they should have been according to this code and to get us up to that model aquatic health code. It also requires um a lifeguard supervisor or a headguard to be on deck at all times to make sure that the lifeguards are attentive and watching and surveilling property and to make sure that they're uh getting their approved breaks and rotations um to manage that aspect of of lifeguard safety. Swimming pools are the source of water safety education for many communities and especially the McMinnville community and surrounding areas. Drowning is the leading cause of death for children for

toddlers, leading cause of accidental death for uh toddlers. Um and it's pools are one of the safest places um and have uh much fewer incidents of fatal drowning than outside. And the model aquatic health code is the standard now that all pools are being held account held to in terms of uh if there was a a fatal accident that were to happen. Um it doesn't matter what the code is, we're going to be held to that standard. Um, so not only is it important for our community to make sure that our standards are up there for safety reasons, but also as a liability um, measure. Because of this increase in staff, we've had to um, I lost my timer. Am I doing okay? Okay. Um because of the increase of staff this year, we were able to manage it because with three brand new full-time employees taking over the aquatic center after three retirements, we had some savings in our uh our health benefits that were uh allotted to us in the in the previous budget and that's that's balanced out well for us in next year's budget with additional the additional staff that it would require to maintain the standard presented by the Oregon Health Authority. Um it would require us to uh move towards additional FTEES for our part-time staff and um to maintain our FTEEs as we currently have them, which I think is in your budgets. It would require us to close on Wednesdays and for our full-time staff to take over that pool supervisor or head lifeguard position for about 6 hours of each day between two individuals. Um,

so that would require our myself and the the swim supervisor to spend about 35 hours per week acting as that headguard. if we were to maintain staffing at that current level. Um, so the request uh is a budget, help me out here. Um, a budget change. I forgot the word. Budget

ad package. Thank you. um for additional FTS for our part-time staff to bring us up to that standard so that we can continue to maintain um the service levels uh as they as they are now. and to provide that space where people can learn to swim and continue to practice after taking our swimming lessons and working with their families to continue their swim journeys. Okay. So, next slide is going to tell you the pages and we're ready for questions and discussion. All right, we are ready for questions and discussion. I just wanted to point out real quick that we are having time for public comment during at the end of this meeting. So even if our discussion isn't over, we are going to pause so that the public can make comment that are here. So we're going to pause at 6:30 no matter where we're at because we can continue this discussion on Thursday. Does that make sense? I just don't want anyone to think that I took you off of the list. So, all right. Anyone with a question or comment? Uh, committee member Harman Ferry,

if I read it right, the HVAC system was put on hold because we needed the money for community center upgrades instead for the library. The the HVAC dollars went to the community center elevator. Mhm. Um given that that was a a immediate fire that needed to be put out in a way. Okay. Okay. So I did read that correctly in my mind. Um so I'm assuming the HVAC system is not improving. Is there a plan for addressing that at some point or have we It is on the list and it may be is it's on the list.

Great. That's what I need to know. Thanks. Committee member Benner proced sorry councelor Benner my bad. I'll take anything. Um procedural question. The budget that we have in this document means the pool is closed on Wednesday without uh the ad package of the 147,000 that was on the last slide. Yes, it would be closed on Wednesday. And so as we go through this process, there might be other adbacks or

there's other ad packages that are identified in a running list. Some of that was cleaned up from previous years. This is the one ad package that's called out in the presentations as far as unfunded to this detail. Um, as far as where you go from here, you know, I would take this number under advisement and you guys could do a straw poll where you feel on adding this back. But when we get to the end of all the budget presentations, I would encourage you to figure out where you want to cut to fund this if you guys choose to fund this. So we still present a balanced budget and don't go into a deficit because with what we're carrying over at the 135 funding the 147 you'd be in a very slight deficit.

Thank you. Uh Council Peralta um thanks for the presentation. Um I had questions about the library or the um lifeguard staffing. Sorry I'm going to say that into the mic now. I had questions about the lifeguard staffing. So, um, prior to this year and prior to that ordinance change, were lifeguards not rotating? Was there not not a rotation? You just had them on kind of full-time on the deck?

Um, that's a good question. There was a rotation. It wasn't meeting the standards that are laid out. So, um, in order to rotate properly, you do need, uh, a lifeguard comes up, takes over the spot, there's eyes on the pool at the whole time, and every single part of the pool can be seen. Um, so the way that they were getting by was to rotate one lifeguard from one pool and one lifeguard from another and come to the middle, which creates a lot of blind spots in both pools, and then they would switch spots. So they would get that rotation, but they did not have the surveillance break because they were going back and forth.

Was it the same two lifeguards just rotating all day? Not all day, but for um a good chunk of the day. And um I I think this was part of the the building back of from COVID was was filling in those gaps. And then um managers I believe uh would provide the the headguard support. Um and I'm not sure how that looked but oftent times it was headguards also doing or the manager providing that headguard support doing their administrative tasks and sometimes working the front desk all at the same time.

Got it. And um so now under the rotation a guard will work for 30 minutes or something and then go off for 30 or something like that. Um we typically keep breaks the the break from scanning at about 15 minutes. Um and during that time we have uh janitorial tasks that need to be done throughout the day. Um, so that would yeah, it would be about 30 minutes to an hour um in rotation and then a 15-minute surveillance break. That was my last question. So, the the guard staff is also responsible for janitorial or cleaning at the pool and that type of stuff.

That is something that we've been working with Giani to figure out how we can actually take over. We're we're a part of the janitorial contract for the city. um but looking at saving some some costs and taking that on fully. Um but yes, during right now during the day any kind of janitorial needs are covered by the lifeguards. And then last question just to confirm. So the in order to reopen on Wednesdays, it would be 147,000 in staffing costs. And then what would that mean for the community in terms of coverage at the pool in terms of total hours? total hours per week

per week. Um, so right now we're open 5:45 until 8:30 Monday through Friday and then uh 10:00 a.m. to 2:30 on Saturdays. So that would just maintain just restoring one day. Got it. Thank you, Councelor Gary.

Thank Thank you. I have a few questions are kind of from the park and wreck budget. Um uh on paper copy page 230 and you can turn the disco ball back on if you want during my questions. Um paper copy page 230 line 5380-10. So this is like an aquatic center question. I I noticed you've uh up up from historic uh budget for up to 45,000 for swim club and the description is swim team used uh to used to offset rental fees with memberships now paying direct for pool use. I was wonder if you can update me on that conversation why we're seeing that increase.

Yes. Um the the way that swim teams were paying for their dues, uh they had a requirement to buy a family membership for all of their participants, but that membership would then offset the cost of their yearly dues. Um so what we did is we uh went to a perlane per hour rental fee. we didn't require we're not requiring the uh the family membership anymore. Um and so that you're not seeing the offset of the family memberships that they used to pay. So this budget reflects that a renewed agreement. We're moving beyond the reciprocal trade membership agreement to paying per lane per hour usage.

Correct. Okay. Very good. Thank you. Um, another question in um just in general parks and parks and wreck on on paper page 227 um line 7750-04 professional services grants which has historically been about a 40 to $50,000 number. We've zeroed out what are we what was that trying to attain and what are we not doing now relative to grants? Tell me the line again. 7750-04 on paper page 227

that was the ARPA funds that were used to pay for um the bond. Okay. And so we wanted to um clear that that line item out. Um, however, there are still the 7750 on that same page. Um, that was not spent in last year's bond efforts with the thought that if you choose to go forward with the bond in this upcoming year that it it's there.

Okay. Um, thank you very much. And then back to Josh, not a line item necessarily, but when you built the budget, um assuming operation wasn't going to be open Wednesdays, did did you adjust your expected admissions revenues or are those just going to move in concert with each other or it's not nearly? Um I did not adjust those. So I imagine that those would uh decrease with uh the decrease in service levels. Okay, very good. Thank you,

Councelor Chennowith. Thank you. Um, I got a series of questions, so I'll try to make these quick. Page 83. Um, under number of employees and and volunteers since, uh, for March 2026, actual aquatic center, three full-time, 46 part-time. Um, what is this total out to for actual FTEES that are currently being used for the aquatic center? I believe it's 10 point somewhere around 10.46 um is what was originally budgeted the with the um the increase it comes out to about 13.9 somewhere around there I believe.

So we're looking at a 33% increase in FTEEs for one day. Yes. Okay. Just making sure I'm clear on that. um what would be the FTE increase needed for um if if we were to say okay we're okay I'm I'm not saying we are but just so I understand that the difference between the two because you expressed that part of that FTE is going to make it to where we don't have six hours per day of management staff and part of that FTE is to to make sure we have staffing for Wednesdays right so two different issues

so so yeah so that I mean that um I guess it's not just Wednesday it's also So throughout the week, we have our management staff taking over headguard positions and our front desk management supervisor, one of those full-time employees who's also covering extra shifts. Right. So, in my assumption, and it may be a bad one, um, but in my assumption, that means to be open on Wednesday, we could potentially be open on Wednesday, still have management work six hours a week, and that would require less FTEES. What would that look like? Um, I don't have those numbers, but I can uh put some numbers together. Okay. Well, since I don't have those numbers, I think I've hit the end of my questions. Thank you.

Okay. Uh, Committee Member Hunter.

Okay. I've got two questions. Uh, one about the libraries. So, um, there was a on page 301, um, it mentioned that there's miscellaneous revenue from the the library foundation and friends contributions. um and that they were budgeted at $93,050 for FY2627 and that was up 39% from uh the 66800. So is that increase committed or pledged or is that just projected? uh it is committed that is primarily um a grant that is running through the friends of the library in in addition to the usual programs that they fund.

Okay. And is it for one year or is it over multiple years? Well, it's for um one year, but we are looking at the possibility of an extension from the granter. So, that's um in the works. Okay. And thank you for the library question. Yeah, you bet. And then I had a question about the senior center program coordinator. So the budget is reestablishing that role after COVID. Um what programming is planned as a result of that change to a program coordinator and um what is there any projected revenue offset with increased participation or um what are you hoping for with the with the change to the program coordinator?

Right. So, there will be um more exercise classes and more social um and art classes and whatnot. We did do a little bit of a projection on the revenue. Uh but I did that end up going into the Oh, it did. No, it didn't. Um I can get that for you as well if you'd like. But yes, there was definitely an um increase in revenue. any chance that you remember the Okay. Excellent.

Yeah. And that's one of those where um you know we it's a it's estimated but we have seen that the senior center programs are um very well attended and there's a lot of interest.

Great. Um the other uh really I think uh props to the senior center is that in the last year or so they have received many um a number of donations, a number of large donations to continue their social programs. And that really has come from people seeing the great things that they're doing and the um the benefits they're having for that community and wanting to continue to support that. So we're um that's a good thing to see. But those are more to support um social programs. Um this would be more uh classes. Wonderful. Thank you so much.

Uh councelor Tukulski.

Yeah. Thank you, Chair. Uh Director Berg, I have a library question on the FTEES. Uh on table two that was shown earlier uh in Director Henry's presentation. It shows that there's a change in FTE for the library of positive 1.13. But the numbers on page 301 in the paper packet show that the 26 27 you're looking at an FTE count of 14.29 and 2526 is an FTE count of 15.22. So there's an act there's like a 2.06% or excuse me 2.0 FTE difference there. Councelor Chennowith, will you speak into the mic so we all can hear?

I said I think if I remember correctly the 1.13 plus was for the overall budget, not just the library. Are you referring to the culture, parks, and recreation when they said the well table two? It just says library and then on the uh I guess what table two of the packet that was given to us that's not in this binder part of director Henry's presentation I think. Councelor Tokulki, are you talking about slide 14 of the budget presentation that HR director Hedges spoke to?

Totally. Yeah. I was screenshotting things as they were going through. I don't have the slide number.

If I can clarify, that is just a visual representation of the table that is on page 82 of your binders that has the the numbers unless Vicki corrects me, but that's my understanding. So, I'm looking at page 82, the library, and seeing a decrease of n3.

I agree. And then okay table number two I think on page 14 if director Henry I'm not sure if you can present that or not. It's showing a positive of 1.13 FTE. That's my error. I apologize. Got it. Okay, teamwork.

Um, okay. Thank you for that. And then I I had a follow-up question as well. Um, the other part was, sorry, I lost my train of thought here. So you this is about the senior centers specifically real quickly. U you said that the safety issues with the flooring are going to be taken care of as well. Correct. Okay. Yes.

And have you taken into consideration all of the safety issues and all the needs that we've had over the last year in the senior center? Those are the Yeah. Uh, are you referring to the I mean the So, we had the carpet replaced. Are you talking about the entrance and the Yeah, I'm talking about the the entrance and the just the general safety of the entrance and not having visibility. I um you know that was something that was part of the bond package and that's a discussion with the bond package I think.

Okay. And if I may have add one more comment here. Uh having having a pool is nice. It's great. A lot of people use it. The challenge is that we're coming up against what we consider to be a bond for a new pool, which means there's greater demand than we can provide even today. I'd hate to see this close for a Wednesday because I'm sure there's a lot of people that use it on Wednesday. And I I don't like an ad package, but I would like to find a way to fund that so that we can balance that by cutting something else. I'm not sure what it is. Obviously, our bond failed by 13 votes. people want a new pool and I think it's important to try to keep that open at this time. So, you do have my support to try to balance that. I think it's important for the community.

That's my comment. Thank you. Uh, Committee Member Frost. Yes, Director Burke, I was just wondering what you have experienced from community members about the closure of Sundays. Have you gotten much feedback about that? Have we had complaints or concerns about the library not being open on Sundays?

There there definitely have been comments to staff and then to me. Um I have not received anything officially but as I say anecdotal information is that people miss it. There were certain people who that was their library day. Um I know that when that was planned there were questions about well why Sunday? Why not Wednesday? And it really was in terms of staffing. Um the the that was what made the most sense in terms of managing staff hours. Uh but as I said, that's something that I'd like to um look into more. Ask the question about, you know, if so, would you use it? what are the hours that you would use it? Um, and come back with something that's a little more um concrete to to this organization if if not um, you know, following all the proper proper channels, mind you. And also looking at you know we we are doing some reorganization and trying to look at where there are efficiencies and we already have found some efficiencies and and hoping to find more of those efficiencies.

Thank you. I appreciate that. Um okay I wanted to make a comment. Um I agree with what councelor Tokulski said his final comment. I would really like to figure out how to include the ad package. I would I appreciate all the hard work that the staff has done and I hope as you continue with your presentations maybe you'll point out possible places where you suggest that we make reductions. I don't know if there's lowhanging fruit or I know obviously this is was a lot of work so there isn't like a oh of course cut this but um I hope that we can figure that out by the end of our meetings um without just cutting into our reserves. Um and then councelor Peralta.

Thank you, Chair Maxfield. Um Director Berg, I neglected to extend my gratitude to you for doing double duty. Um and particularly in the given the fact that the library was particularly implicated in the previous budget round. I really appreciate your dedication to the city and understand the sacrifices that you and people in the library staff made last year to help us keep the budget intact. Um my question is um we've had uh a security company operating and you've told us that that's improved the safety at at the library. Um and I'm wondering in this budget cycle it's it's it's a little frustrating that the state's added requirements um that require us to spend more money on the pool staffing. Um, so my question to you is given the increased security and the presence of those folks, is there any potential to to run the library safely with different staff with, you know, maybe in some cases lower staffing models at certain times of the day um to facilitate more hours? or is there a way that we can inexpensively uh try and restore some library service um you know that that maybe doesn't come with a huge price tag. Is is there, you know, kind of a more cost-effective way that we could look at some type of expansion in this year with your service?

I we have at the library we have already um you know we we felt we were you know had a pretty tight belt and we tightened it even more and We I can't safely and um I can't safely add more hours to the library where the current staff that we have. Um, I do think that there is a possibility of getting back to those 45 open hours with maybe a um less FTE than we had previously with those 45 open hours, but not with the current FTE that we have at the 39 open hours. Um, I will also say that within the model that we have that we're we're working with now and and looks like it will be continuing, not only do we have left less FTE, but they are um at a lower range FTE overall. you know, um, a couple of the cuts to FTE or reductions to FTE, um, due to retirements are the higher range employees and not replacing them. One, not replacing at all. Um, one replacing at a um, just restructuring.

Yeah. So, okay. Thank you. Um, councelor Tokulski has a comment or question and then we are going to close the discuss, pause the discussion for now and make sure we leave time for the pending public comment. So,

yeah, thank you chair. Uh, to Council President uh Peralta's comment, last year we allocated more funding toward the police department. I know that they've staffed up because of that a bit. I don't know if it's reasonable to ask them for some extra patrol essentially to go through the library in the aquatic center. We used to have officer height on board. He's no longer here. He would do that quite frequently. U I don't know if it's reasonable to ask Chief Wood if he could dedicate at least daytime operations. Uh someone to walk through every once in an hour or so. I don't know if we could do that or not. I don't see him over there. But uh for consideration, I would ask that. Um I know it's not the most exciting part of the police job, but it's still community service. Uh the other thing that I wanted to add here and this is just a general comment and I have to give uh credit to uh senior center manager uh Erin Gwyn. Uh recently uh director Christensen has uh she has retired and she she prop told us that we should propose naming the uh senior center so that we could bring greater visibility to that. And uh Miss Gwyn actually I've heard has proposed Barbara Brewer who is uh or was the uh senior center director for 16 years of her 20-year career within the city of McMinnville. Uh she helped build and expand senior programs beginning in the 1980s. Uh 1995 she became the first director of the standalone uh senior center. Uh there's literally thousands of people that have benefited from her uh being a director. And I would ask this uh group to just consider perhaps even a name change. It doesn't have to have all the uh I would say signage right now if we don't want to pay for that, but at least consider that to where we could bring a name to that if appropriate. So thank you.

Uh Director Henry, is that our maybe this is city manager Garvin. Is that the budget committee's purview? Naming wouldn't be part of the budget committee purview and naming of the senior center is something that I've engaged director Berg with and have a more uh long range plan for that to bring multiple names forward to the policy body. Uh the name you mentioned is one of those individuals. I'm just asking because of the funding part of it. So that's why I brought it up. Understood. Great. I didn't tell you beforehand, so so I apologize. All good. budget chair. Yes. Just

I just want to um thank all of the um parks and recreation and library managers. It's been a it's been a a long and pretty tough uh year for everyone and I they have been uh an amazing support for me and um I'm really proud of all the work that they've done um at the library and all of the parks and recreation facilities. Thank you. All right. Now, we are going to close our discussion and um if director Berg and Josh, sorry I forgot your last name. Aquatic Center director want to move so that we can invite uh the public to share their testimony. Comments will be limited to three minutes. Um, if we don't get to you tonight, there's additional opportunities for public testimony available during the budget meetings on the budget meeting on May 18th and if necessary, the meeting on May 21st. Um, to ensure all voices are heard, we kindly request that individuals sign up to provide public comment on only one of these evenings. Public testimony received through the city website or emails will be added to the public record of the meeting. If you are on Zoom and wish to speak, please use the raise your hand feature or chat feature and send a chat to Claudia. Once your turn is up, we will announce your name and unmute unmute your mic. To ensure fairness, we will alternate between participants who signed up in person and those who registered via Zoom. Ple please announce your name and the city you live in. For the record, we will start with those who have pre-registered. Claudia, who do we have signed up for public comment? Uh,

first person we have is Courtney Martin, who is on Zoom. Courtney, you should be able to join. Perfect. Can you hear me? Yes. Great. Um, sorry it kind of went out when I was transitioning to uh connect. Is it am I okay to go ahead? can go ahead. Yes, we can hear you.

Okay, great. Um, so good evening and thank you for the opportunity to provide public comment tonight. My name is Courtney Martin and have been a resident um since 2021 and have two children at Memorial Elementary and I would say that uh my family's only regret is that we did not move to McMinnville sooner. It's a wonderful community to live and raise a family. I excuse me first also want to acknowledge the difficult budget decisions facing the city. I understand balancing services, rising costs, community priorities, it's not easy and really appreciate the work and learning from this prior session um from you all about all the thought that's gone into the proposed budget. I'm here tonight to express strong support for a budget that continues existing service levels at the aquatic center, a critical community asset. The center is much more than a recreational space and is home to the McMinnville Swim Club has provided decades of training that fosters individual strength and discipline, determination, youth development, team unity and connection. Um, many of the items around socialization and mental health and physical activity that director Burke touched on and mentioned as well that are so critical to the services that parks and rec provide. If I fully understood the update um given by staff, the budget is currently proposed will close the facilities on Wednesday, which may appear modest on paper, but in practice creates meaningful disruption for youth programming and organizations that depend on reliable scheduling and access. I respectfully ask the council and pool staff to explore alternative um solutions or funding tradeoffs to meet the staffing requirements uh without going into reserves and ultimately approve a budget that adds sufficient staffing to maintain the current pool operations and community access. Thank you again for your time, all the work that has gone to date on this budget and considering this perspective.

Thank you, Courtney. That is everyone that signed up.

Anyone else on Zoom or Okay. Um well, uh I think there will be anyone last second discussion or comments, mayor. Okay, we'll just we'll just take a nice little break. Uh, there being no further business to come before the committee, I will now adjourn the budget committee meeting at 6:38 p.m. The budget will reconvene on Thursday, May 14th at 6:00 p.m. We'll be back at 7 for city council. Good job,

Recording in progress. Well, you know, I'll do it. I'll do it. Forget the public notice. David's sitting here. No, please.

Oh, sorry. It won't let me turn it off. Good evening. It is now 7 o'clock and I'd like to call the city council meeting to order and request that Claudia Cisneros do a roll call. Councelor Chennowith

here. Councelor Benner here. Councelor Giri. Good evening. Councelor Cunningham here. Councelor Tokulski present. Council President Peralta here. And Mayor Morris here.

If you're able to stand, please stand and and join me in the pledge. Now, we're going to move on um any to public comments. Any interested audience members are invited to provide comments and any comment provided that requires some type of follow-up will be assigned to a staff member. Anyone may speak on any topic other than a matter in litigation, a quasi judicial land use matter, or a matter scheduled per public hearing at a future date. Comments will be limited to four minutes per person for a total of 32 minutes. If you are on Zoom and wish to speak, please use the raise your hand feature or chat feature and send a chat to the city recorder team. You will need to provide your contact information prior to being promoted to speak. Once your turn is up, we will announce your name and unmute your mic. Please announce your name and the city you live in for the record. And we will start with anybody that has pre-registered. Claudia, do we have anybody signed up? No one has pre-registered, but before that, I do want to state for the record that we received two written um emails that have been forward to the council and will be made part of the amended packet posted tomorrow. One being from Matthew Bertran and the second one from Sarah McBride. Thank you. Do I have anybody in this civic hall that would like to speak that didn't sign up? Okay, then we're going to move on. We're going to move on to new business. And tonight we would like to um recommend so on May 12th the city council the city of McBeble I'm hoping will approve on the recommendation that I have from the water and light commission for Andrew Anderson to fill the vacated seat of

Adam Garvin who is now our full-time city manager. So I just need a motion or I I guess I do I need to do a motion or just appoint Yes. motion. So, do I have a motion to accept the appointment of Andrew Anderson to the water and light commission? So, moved. Second. So, I have a motion from councelor Chenwith and a second from counter counselor Tatulski. Can't say your name tonight. Any further discussion? Claudia. Councelor Chennowith. I. Councelor Brener. Hi. Councelor Giri. Hi. Councelor Cunningham. Hi. Councelor Tukulski. Great choice. And I uh Council President Peralta.

Yes.

And the motion passes unanimously. And Andrew Anderson is in the audience with us tonight. Can you stand up? And we can say thank you. Welcome. Okay. Now, we're going to move on. We have a lot on our agenda tonight. Um we're gonna have another public hearing. So, the public hearing is to consider ordinance number 5180, an ordinance an annexing to the city of McBenville, tax slot R4430A D0010 0. You can find it on pages 5 through 21 of your packet. The order of procedure for tonight's hearing is set out in detail based on city code. In brief, we will start with the staff report. Next, the applicant will be asked to provide testimony. Next, the public will be asked to provide testimony. Testimony will first be taken from those testifying in support of the application, then from those testifying in opposition to the application. The applicant will then be given time to respond to to and or rebut any evidence presented. After the staff report and after people testify, counselors may pose questions to the mayor to be addressed to the person who testified or to the staff to clarify any information that was conveyed in the testimony. I will ask everyone who signed up in advance to testify first in the order in which they signed up. Then I will ask if anyone present at the civic hall would like to testify. And then I will ask anyone who is on Zoom who has not testified who would like to testify to do so. Once the city council has heard from everyone and the city council is satisfied it has all the information it needs to render a decision, the city council will close the hearing. Deliberations will occur during agenda item 8D of the regular city council meeting consideration of ordinance number 5180 on the agenda.

We wish to hear from everyone who wants to testify. However, we request that if you refrain from repeating testimony that has already been given. If you agree with someone before you who has said something that you agree with um standing in public record, please just provide testimony that indicates that you concur with what they have previously said. Public testimony will be limited to 3 minutes. We will time the testimony and provide you with a visual warning when there is one minute remaining. Since this is a legal process for considering an annexation of land into the city limits, we need you to state your name and address for the public record. so you can receive a written notice of the city council's final decision. We ask that you keep your comments um clear and relevant to the discussion and short. A staff report was published 7 days before the hearing and it identifies all of the applicable criteria. We're now going to go into a public hearing. This public hearing is to consider num ordinance number 5180 to annex the property into the McManville city limits. The property tax lot is R4430A D is in David 00110 0. The applicants are Bruce and Nyla Cook. The public hearing is now open. Does anyone object to the jurisdiction of the city council to hear this matter? Does any city councelor wish to make any disclosure to abstain from participating or voting on this application? Does any city councelor need to declare any contact prior to this hearing with the applicant or any other party involved in this hearing or any other source of information outside of staff regarding the subject of this hearing? If any cloud Oh, okay. Nobody does. So, will community development director Heather Richards please give a staff report on ordinance number 5180?

Yes. Good evening, mayor and counselor. So, this is an ordinance to consider annexing a tax lot into the city limits. It's within our urban growth boundary. It is a tax slot that's over uh just adjacent to Cyprus that's bounded on the north side and the south side and the east side by uh uh urbanized land. And so it land within the city limits and just its short western edge boundary is adjacent to our new UGB southwest area. Um so this is this shows the site within our city of McMinnville comprehensive plan that we're considering to bring in. Annexation is governed by two things. It's governed by uh OS222 state law as well as local regulations. and our local regulations is title 16 of our McMinnville municipal code. The first step of annexation after an application is submitted is for the city to enter into an annexation agreement with the property owner. The annexation agreement spells out what the city's expectations are of the property owner and also allows the property owner to understand uh what our process will be in terms of the annexation. That annexation agreement was approved by city council via resolution number 2025-13 on April 22nd, 2025. At that time, it uh it talked about the need for the uh applicant to go through a land use process and have that land use process approved uh before coming into the city for annexation. So tonight you also have on your agenda ordinance number 5179 which is a zone change and tentative subdivision plan for this annex property. You will be considering that before you consider the ordinance for adoption and the ordinance is contingent upon that successful uh land use decision. In the annexation agreement there were concerns expressed as so staff gathers together reviews the

annexation agreement with other our partners uh that would be impacted as well. Also the fire district participates in the discussion McMinnville Water Light and any other partners that that are interested in it and uh provide our concerns relative to the property coming into the city and that's part of the annexation agreement. Uh we the concerns we had was we wanted to have pedestrian connectivity to Cyprus. We wanted to ensure that there was access to the tax lot to the west for future development. um we needed to make sure there was fire access to the approved um subdivision and that currently there is existing culde-sac rideway in the um subject site to be annexed in that needs to be vacated. So the after going through a process with uh staff over the past year in terms of meeting the covenants of the annexation agreement and going through the land use process. Um the the uh annexation in front of you meets all the provisions of the annexation agreement if that land use um decision is approved and it also meets all the requirements of OS 222 and title 16 of the McMmin code. and I'm happy to answer any questions that you have.

Do any counselors have questions for staff? Okay, we don't have any questions from the counselor, so we'll now um start to hear our public testimony. Our role is to listen to the public testimony and to ask clarifying questions when appropriate. Does the applicant wish to provide any testimony? You can come up to the table. Make sure the light is green. Hold it. Hold it close to your mouth and state your name and address. Hi, I'm Bruce Cook. I 1525 Southwest Cypress Lane. It's my address. And so the property that we're looking at annexing. I live just to the south of that. Can you uh

I'm going to stop you for just Can you bring it just a little bit closer? Sure. All right. How's that? Okay. So, I live just to uh to the south of this piece that we're annexing in. It's been a part of the family property for uh about 50 years. I was able to purchase this strip that we're annexing now. We're in the process of bringing it from the county to the city which allows us to develop uh the area that we're looking at. Uh it has been a interesting process. I'm not a developer by nature and so uh I really appreciate working with the city staff and then being able to bring this to you for uh your approval. Thank you.

Can you stay right there for a minute? And does any counselor have any questions for the applicant? Now you can go. Thank you. So we'll start with the people who have signed up in advance to testify in support of the proposal. Please remember to include your name and address for the record. Claudia, do we have anybody signed up in support? No one has uh signed up. Okay. Is there anybody in the room that wants to speak in support? Okay. Is there And there's nobody on Zoom too.

We have people on Zoom. Um, if you want to raise your hand, we can get you in if you want to speak during this time. Nobody. Okay. Is there anyone in the signed up and speaking in opposition? Is there anybody in the civic hall that wants to speak in opposition? Okay. Oh, this is going quick. All right. Does the applicant wish to You don't have anything to respond to. Anything else you want to add? Nope. Okay. Does the city council wish to continue or close the public hearing?

Okay. So, we're going to close the public hearing and then it'll be further on the agenda. We'll talk about it later on the agenda. Thank you. We're going to go to our second public hearing to consider resolution number 2026-20, a resolution adopting a planning and engineering fee schedule effective July 1, 2026. This is pages 22 to 34 in your packet. Does any counselor need to declare a potential or actual conflict of interest or recuse themselves regarding this topic? Okay. like to call in Heather Richards, community development director, and Joff Huncker, public works director to give presentation on the topic.

Uh, thank you, mayor. I have some brief uh, oral statements tonight. So, tonight's actions consideration is for consideration of resolution 2026-20, adopting updated planning and engineering fee schedules. The resolution also appeals all prior fee schedule resolutions. Um it so the background for this it's council policy to uh that applicants for development related services should pay their proportionate share of the cost of those services. In previous years the city completed planning and engineering fee studies and has been transitioning toward that full cost recovery model for development review. This is our annual update um as part of maintaining that cost recovery approach while keeping the fees aligned with inflation and actual service delivery costs. Uh this proposed update is based on the West Coast CPI between January 2025 and January 2026. The West Coast CPI increased 2.9% and those uh increases to the schedules have been applied. There are no other subsistent changes to the underlying fee methodology and these fees continue to be based on estimated staff time, the classifications involved and any direct and indirect delivery costs. The intent is to maintain alignment with council's direction on full cost recovery and reduce impacts to the general fund. The fee structure also contains targeted reductions for qualifying affordable housing projects and some resident focused permits. I'd like to note that there is no limit for the amount of uh subsidies for the affordable housing projects in a fiscal year. U these are intentional policy choices tied to housing affordability and community access goals. So staff recommends adoption of the resolution.

And are those already in the proposed budget? Yes. Yes, they are. Okay. Any other questions for staff? Nope. Okay. Heather, did you have anything that you wanted to add? Okay. Just want to make sure. Okay. So, if we don't have any questions from counselors, we're going to start the public hearing. We will now start. Each person testifying will be allotted three minutes for their testimony. We will start with people who have signed up in advance. Do we have anybody signed up in advance? We did not.

Okay. Is there anybody in the civic hall that would like to speak? Okay. All right. Any other comments from councelor or I'm going to close the public hearing. Okay, we'll close the public hearing and it will be read later on the agenda. Okay, now we're going to move to the consent agenda. Pages 35 through 110 on your of your packet. Does any counselor wish to remove anything from the consent agenda?

Item H. Councelor Benner would like to remove H from the consent agenda. Anything else? Okay. So, do I have a motion to accept the consent agenda minus H? So moved. I second. So I have a motion from councelor Giri. I have a second from councelor Takowski. Any comments, discussion? Claudia. Councelor Chennowith. I. Councelor Benner. Hi. Councelor Giri. Hi. Councelor Cunningham. Hi. Councelor Tukulski. I. Council President Peralta.

Yes. Uh the consent agenda has passed with item H removed unanimously. Okay. Okay, now we're going to look at H, which is to consider the request from Wenderly LLC for for winery non-conumption OLCC liquor license located at 829 Northeast Fifth Street, Sweet 700. Councelor Benner, would you like to state you abstain? Uh, potential conflict of interest. Okay, so we have councelor Brener that's going to abstain from this. Do I have a motion to accept it from any other counselor? So moved.

Second. So I have a motion from councelor Cunningham, a second from councelor Gary. Any further discussion? Claudia I. Sorry, councelor Jennith. And still I um councelor Giri I. Councelor Cunningham I. Councelor Tolski I. Council President Peralta. Yes.

Um the motion has passed with five eyes and one abstinction. Thank you. Now, we're going to go back. We're going to do a resolution for 2026-20, which is a resolution adopting an the planning and engineering fee schedule for the city of McManville and repealing prior resolutions establishing such fees. Again, those are between 22 and 34 of your packet. If you're interested going back, I'd like to call on community development director Heather Richards, but I think we're going to hear from Giov um Hunucker, public works director. Uh staff has no additional comments.

Okay. Council have any questions at this time? I'd like to ask for a motion to consider resolution number 2026-20. So moved. Second. So I have a motion from councelor Gary, a second from councelor Takolski. Again, any further discussion? Claudia, please take a poll. Councelor Chennowith, nay. Councelor Benner, I. Councelor Giri, hi. Councelor Cunningham, I. Councelor Takolski. Hi. Council President Peralta. Yes.

Uh, resolution 2026-20 passes by a vote of 4 to two. Okay. So, now we're going to 7B, which is consider resolution number 2026-28, a resolution authorizing the city manager to execute a contract amendment to the 2024 goods and services contract, which is project 2024-2 with City Sweepers LLC to provide downtown sweeping services. This is pages 111 through 115 of your packet. I'd like to call on public works director Jeop Huner to present.

Thank you, mayor. So, just briefly on this one, um, as we will be discussing in our Thursday budget meeting, the city is proposing to bring uh street sweeping inhouse this next year, but that is for our regular street sweeping. This contract specifically is for our downtown street sweeping, which includes streets, alleys, and public parking lots. The reason why it is separate, they use smaller specialized equipment and it's also uh noise reduced because we do that late at night uh and we want to have as minimal impact into our downtown area when we're doing that and they sweep on a more frequent schedule. So that's why this is uh separate from that in-house street sweeping proposal. This contract is included in next year's budget.

Thank you. Any additional questions for public works director I had a question then Takowski. How many bids did we get for this work? It looks like we can just continued with the current street sweeping. Yes. So, this was a continuation because the original contract uh was for two years and they had two one-year extensions. This is the final one-year extension to that contract. Next year, we'll have to go back out to bid. Okay. So, their contract is still exclusive to them. Correct. Okay. Thanks. Any other questions? Do do you I know we're just getting it propped up, but can I jump in with a question?

Uh I know we're just getting that propped up. Do you see this as somewhere we're going to want to invest in onboarding this service as well, or will this be something that still makes more sense to have a specialized? Potentially. The biggest change would we could buy the equipment for sure. It's doing the late hour sweeping. Um that would require overtime uh hours or whatnot for his staff. So that would be quite a bit different. Uh we could also propose to close parking on Third Street and stuff like that at certain times to be able to do it, but we try to keep that open for the businesses as much as possible. Very good.

Okay. So, if I can have you look at a page 112 of your packet, it gives us all alternatives as to what we can do. Alternative one is to adopt the attached resolution authorizing a contract amendment with City Sweepers LLC. Downtown sweeping services will continue to be provided by an experienced and qualified contractor for another year. Do I have a motion to accept that? So moved. Second. Second. So I have a motion with councelor Giri. I'm going to say a second from councelor Peralta. Any further discussion? Claudia. Councelor Chennowith. I. Councelor Benner. I. Councelor Giri. I. Councelor Cunningham. I. Councelor Tokolski.

Hi. Council President Peralta. Yes. Resolution 2026-28 passes unanimously.

Thank you, Claudia. Okay. Now, we're going to go to page 116 of your packet. This is to consider the second reading of ordinance number 5174, an ordinance memorializing the city council's decision for the McMillville Industrial Promotions appeal of the planning commission's approval of MP6-25. I'd like to call in Heather Richards, community development director, to present any additional information. So, mayor and counselors, I won't be presenting any additional information as the record is closed, but I will be sharing with you um what's in your packet tonight for you. Uh this is as we said ordinance number 5174 which is an appeal by McMinnville Industrial Promotions of their minor partition decision which is MP6-25. So tonight's actions is the second reading of ordinance number 5174 with new findings as directed by the city council at their meeting on April 8th 2026. New findings essentially state that utilizing the plain language of subdivider, the city council finds that 17.53.153 of the McMinnville Municipal Code entitled improvement requirements only applies to subdivisions. This by default means that it does not apply to minor partitions. You can find the new finding in the conclusionary findings of the decision document which is exhibit A to the ordinance on page 165 of your meeting packet. The outcomes associated with this is it removes all conditions of approval associated with improvement requirements including conditions of improvement approval to connect to the sewer system to provide storm drainage um plans to connect to water to build streets to connect to electricity to build

sidewalks and to install street trees. What that means is we remove and those are all the improvements under that section of the code entitled improvement requirements. What that means is we remove conditions of approval 5 9 10 11 12 13 14 15 and 16 and you can find that those deletions in pages 122 to 124 in the discussion of your staff report. So the remaining conditions of approval uh for you in exhibit A tonight is uh appro conditions of approval that reference performance metrics. So when the um minor partition needs to be recorded and the dedication of rideaway or easements needed for public improvements. This is a historic departure from the city's previous application of this section of the code. I'm happy to answer any questions you may have.

Councelor Gary.

Uh thank you. Can you remind me what the cost of the appeal was just in terms of our fee schedule? And then second, while you get that, uh, curious what the staff time was to rewrite this new findings. Excuse me. I do have in your fiscal impact of the staff report the impact to the city in terms of costs for administering this appeal um which we appro approximate as $3,000 in legal fees, $500 in public noticing and approximately 30 hours of staff time. The fee for the appeal in the the our fee schedule for McMinnville Industrial Promotions to apply for the appeal is $1,350. And that 30 hours includes to date work, this staff report included.

Yes. Okay. Thank you. It was fairly simple to delete all those conditions of approval. Very good. So Heather, I have a question. Oh, sorry. Um, do those requirements come back on when they develop the land though?

So we are not in a place where we can answer that question for you because that's in introducing new evidence into the record. Um, you you did ask that question at the last meeting on April 8th. At that time, both the public works director and myself told you that we weren't able to make that to get back to you um with uh confidence that we were able to bring all those requirements back into a building permit based on what's in the code today um at that meeting. So, we elected not to share, not to try to, you know, ballpark that or pull something out. So, because um we did not put it into the record when you had the record open, you asked for a memo for that, we weren't able to provide you that memo until after you make your decision because that's introducing new evidence into the record and the appellant wouldn't have the opportunity to rebut that new evidence. Answer Peralta.

Um, uh, Director Richards, um, by removing all of these segments as it applies to this property, how does that affect, uh, other, um, minor partitions that that are coming before the city? Would would they automatically uh be entitled to these same exemptions?

Yes, because you're creating a finding saying that section 17.53.153 does not apply to any land division other than a subdivision. And so by creating that policy decision as as to how we're interpreting the code, that's how we'll interpret it moving forward. Thank you. Any further questions? I should say um uh legal counsel Missy Ryan is also on Zoom for us tonight if you have any um legal questions for her. Um I have a procedural question. Can we ask questions of the attorney during our discussion portion of this?

Uh you may uh I'm also bound to not provide new evidence, but um as long as it's within those sideboards. Okay. Uh, you may I actually wanted to just ask for a point quickly a point and I sorry I didn't raise my hand soon enough but um if the council would not mind disclosing any exparte communications that they may have had between uh the last hearing and this hearing. The exparte prohibitions, you know, do still apply. And so if there have been any, we just need to get those on the record. Has anyone else If there haven't been any, that's great. So,

has any counselor had any discussion in regards to this ordinance with the applicant or did I've had discussions with staff. Okay. And staff staff discussions are um expressly carved out of the statute. So, it's only really members of the public, the applicant, the people you see in the grocery store. Thank you. Okay. I don't see any. Okay. Thank you. Now, did you have a question for I will, but I have comment or one open discussion. Okay. So, we're going to go to city attorney David Lightberg to read the ordinance by title only.

Thank you, Mayor. Um, first I will point out that when we do a second reading that differs on its terms, we need to point out the way that it differs. Again, Director Richards pointed that out. Those are found in the changes in exhibit A at page 165 of your documents. This is the second reading of ordinance number 5174, an ordinance memorializing the city's decision for the McMinnville Industrial Promotions appeal of the planning commission's approval of MP6-25.

Any discussion? Do I have a motion? Okay. Councelor Peralta.

Thank you. Um so I have a couple of comments. Um the um the first comment I'd like to make just relates to the process and this is really almost as much for the paper and the community is as it is for the board. But uh when we consider these uh ordinances um we have two votes and the first vote is a vote to move the matter forward for adoption and then the second vote is actually a vote for adoption. And so I kind of think of it like the way the Senate votes on to move something to the floor and then they vote on it on the floor. So voting for something on the first reading doesn't necessarily from my perspective signal support on the second reading. Um with regard to the ordinance itself, uh on its face, I think the plain language of subdivider in the context of real estate means exactly what the ordinance the original staff report says it does. So, I I don't agree on its face with just that statement in the ordinance. Um, I do believe the applicant has raised a valid concern about the ordinance as it relates to um the timing of the placement of their sidewalks. Uh, in my view, the sidewalks and street trees should be required as a condition of future development or or building permit or parcel frontage um but not required to be constructed prior to the final plat unless it's necessary for safety or connectivity or ADA access and things like that. that doesn't seem to be the case here. So, I was prepared to support this ordinance to remove that requirement. But the ordinance actually goes far beyond that. Um, instead of just narrowly addressing the timing of sidewalks, this adopts the broad finding that our city code applies only to subdivisions and not minor partitions. And based on the staff memo and what Director Richards told us today, that interpretation removes conditions requiring for potentially requiring public all the public improvements in

that section, including streets, drainage, sewer, water, electrical systems, pedestrian ways, private drives, and street trees. That is much broader than is necessary to resolve this appeal. It will negatively impact the city's ability to require and secure public improvements for other minor partitions. and it could uh it it it certainly will cause long-term problems in requiring all of those improvements. So, I think the council should reject the findings of this ordinance. Um my understanding based on discussions of staff is that the applicant has given us until only the 15th, so 3 days to sort this out. My preference would be to come back to ask staff to come back with an alternate recommendation for changing the timing of the ordinance. But because we need to complete this by the 15th, I think what we should do is reject the findings of this ordinance, adopt the findings of the planning commission, which would protect the city's ability to require all the necessary improvements, and then ask staff to review the current ordinance as it is as it exists. and then for everybody draft a policy to defer the requirement for security on the sidewalk development for projects like this one under certain conditions and those conditions would include you know the things not developed u yet it hasn't been platted the the sidewalk would be an isolated segment there's several conditions that planning can put on um and we should only require bonding in situations where the sidewalk needs to be built on a short time frame but needs to be delayed um by the developer for some particular reason. Um so anyway that's my my view of it and my recommendation for the path forward is I think we should reject this uh interpretation this this um these findings adopt the findings of the planning commission and then direct

staff to make adjustments to the current ordinance so that these requirements which strike me as unnecessary that early in the process can be dealt with without undermining the remainder of our city code. Okay. You have a comment, but you have a comment first, councelor Gary.

Yeah, thanks. I just wanted to I read a few things I think in in u being opposed to this last time and planning on again opposing this. Um I just wanted to read a few things in alignment with with S o overall on a lot of that. I I just want to say also recognize that there are competing while there are competing inter interpretations of our code, I do feel strongly that our city attorney and staff had it right. Um, while we may be debating and agreeing we have an old outdated code with bad nomenclature, the faulty words for this application, we still have to deliberate make decisions based on the code we have. Uh, I don't think I don't see criteria that allows us to weigh the cooperation, collaboration, and otherwise general appreciation for an applicant when making a decision. But I do see under codes like 15 of 1753 075D and E that work can be deferred by execution of an agreement plus either a shia bond an escrow agreement to withhold funds cash or a letter of credit or loan commitment. Additionally 1753163 allows for variances to be applied for and granted that potentially I think could have cured this issue. I think this is setting policy and precedent by having this discussion and weighing in. Appeals like this and the empower sign will continue and we will continue to make policy by uh and making the road by walking. My vote uh no is to uphold what I think is the correct interpretation of the code but not a reflection on the applicant themselves. Uh thanks for letting me share my thoughts on this.

Thank you. Councelor Towolski, did you have something you wanted to share?

Yeah. Uh, I wanted to say that, you know, MIP uh, brought to us something which I think is very reasonable for the conditions and I don't think that they're out of line to ask for what they've asked for. I firmly believe that that place does not need all of those utilities and everything that was listed yet. It will eventually, but I do side with coun councelor Peralta. This goes far beyond the MIP ask. And it just shows that our code is not meeting the intent and the needs of our citizens at this time. And because of that, I hate to say that I I I don't support this anymore because it's it doesn't meet the needs of our entire community. it meets the singular needs of a singular entity and that's not how code is applied. So I would ask that we do find a way to move forward with MIP to make certain that they're able to take advantage of this area and develop it but do so without these requirements in a legal manner. I don't know how that would happen, but it probably does come down to a code revision. But I can't support a sweeping ordinance that's going to allow everyone in this city to not provide infrastructure.

Gotcha. So yeah.

So I guess I want to make a comment that I know councelor Chennoth does. Um I think it was something that MIP felt they needed to bring to the council because of the ordinance the the code being out of date. Um I understand that it doesn't meet the current code. I would lean towards a little towards South Peralta as well, councelor Peralta, but wondering if we could, the point's been made, we need to change the code. Could we just take the letter from the bank see if they could just get a letter from the bank saying that they're fine and make sure that we give we say yes we are going to work on the code and the letter will be suffice until the code is changed so that they're not spending money that is not necessary. Missy wants to say something to me. Is that correct?

Thank you mayor. Thank you so much. And just really extremely respectfully, is this the appeal where you had thought that you might not participate unless there was a tie? Oh, yep. Okay, that's what I had recalled. Um, but I think I just wanted to know if that was still the case. But I and and and I believe that you you did abstain from voting uh the from the tenative decision, the tenative oral decision. Uh I don't think I don't think I technically had to once I thought about it. It wasn't necessary that I did after all, but since I did, I'll back off.

But I I did say that and I didn't have to actually I didn't have a problem. I would I just had that recollection. So, I wanted to just get that out on the table so that there's no So, I want to share that to you. Councelor Chenith,

thank you, Mayor. Um, I'm not moved by uh the comments that I've heard so far this evening. My position has not changed. Um, I do not believe Subdivider is referring or was ever intended to refer to minor partitions. Um, I do realize that for some time now the city has made that choice to do so, but I don't think that the the language of the code bears that out. Further, I do not I'm not moved by the argument that if we take it out of this section that we won't be able to require improvements through the rest of the code. And I'm not moved by that because my own experience having done complete remodel in the middle in the city of McMinnville without doing a partition and the requirements that were put upon me just to do a remodel which included uh sto uh storm water um as part of those requirements in order to meet occupancy for my remodel shows me that we do have plenty of code in place for the rest of the requirements listed. Um, so I'm I'm just not moved on on my position at all. I think the intent was that um if it's on a a minor partition. Um when they build a structure on your property, most of the rest of the codes come into place or the requirements come into place. Um so to me, this is not a I'm trying to resolve an issue for MIP. For me, this is trying to resolve what I think is a misunderstanding of the code. I think that's why MIP brought it to us in the first place is they felt strongly it was a misunderstanding of the code. Um and hence the reason they did not make an application or or request for a uh um u I can't think of the word I'm looking for here. Exception

variance um because they've genuinely felt that this was a misinterpretation and and I think that's a very accurate position. So I'm not moved in my position. I'm still in favor of us moving exactly how we did it the first time. I think we did it right. I think we were setting precedent in our code that needs to be set that this does not apply to that that we should be enforcing all of the improvements at the building of the structure. Thank you. Any councelor Benner

a procedural question we have the as I recall there was a possibility of a variance and there was a possibility of a letter of credit both are driven by the applicant. How do we push in that direction if it's we can't legislate that we can't vote for that right? We need our attorneys to kind of help us on this since it's kind of changing directions.

So, and just Missy, for the record, I want to share with you that councelor Benner had shared with me that he um was at the meeting where this hearing took place and and watched the whole proceeding. Uh so, I don't know if he needs to note that into the record to participate in the discussion or not. Well, thank you. That's just what I was going to start by asking councelor Bennett uh which is um you uh may you can participate in the decision if you have um you know reviewed the record and which includes you know watching the the hearing video. It was live.

Oh live. That's right. Great. And so and so you have reviewed the record and you know as it came to the city council. Yes. Is that correct? Okay. Okay. Um and so for the for the second question, uh the the way that the code is written to work, it's it's an automatic um provision. It springs into place if an applicant who has a minor partition approved would like to defer construction of those improvements. It's it's a it's not something that needs to be a condition of approval because it's that procedure is embedded into the code already.

And just for the record, a letter of credit uh from the bank uh is one of the is one of the one of the four options. So I I believe what Missy is saying because Carson, you look like you're not quite sure. Do you want me to I guess I'm still confused. Those conditions existed prior to our previous meeting. They still exist. And so the only way to push towards that is to deny or to not approve this ch code change to support the decision that the planning commission put before us. Council Palta, thank

thank you. Um to in response to uh uh councelor Benner's question um my suggestion is that we adopt we um adopt sorry my suggestion is that we adopt the findings of the planning commission which would be essentially rejecting the findings from the last city council meeting and then direct staff to um come back with changes to the code along the lines of what I suggested which is to not require shity for um you know the street trees and the sidewalks under certain conditions with one of which being when something is at this early stage of development. And so I think that is our clearest path forward given the fact that we have a a timeline of the 15th to complete this work. So, I I guess I would uh concur with um Councelor Peralta and that I I'm not excited about changing the code for a single applicant, no matter how valid their concerns are. Clearly, that plot does not need sidewalks. I think everyone agrees on that. Not at this time.

Okay. But I don't want to alter the code permanently. that would have unknown repercussion shits. Thank you. So, just one time

to give you a path forward for tonight. From what I've heard is if what the majority of you have stated you're looking to do, the path forward would be to let the second reading with the city council variance fail and then come back and make a motion directly following that for ordinance 5174 to uphold the planning commission's uh conditions which would get you to the the letter or the the bond as a path forward for MIP. the letter from the bank procedural question.

I'm just going to clarify some language there. So, it it would be exhibit A in tonight's packet is the one that creates the finding of removing improvement requirements um from from minor partitions. You can uh let that fail and then move forward with ordinance number 5174. The ordinance is written in such a way that it's the exhibit that that is the important piece of this discussion and the exhibit A would be the exhibit A that you got at the April 8th meeting which is the planning commission decision document.

So I just want to make sure I heard what I heard. So you said um reject ordinance 5174 with exhibit A from tonight's meeting packet from tonight's meeting packet. And then adopt 5174 with the findings of the planning commission with exhibit A that was in the April 8th meeting packet. So it's in the record. I'm going to refer to see if I have that wrong, but that's that's correct. Yeah. Okay. Oh, it's

an important piece there, S is that you reference exhibit A from the April 8th council meeting in your second motion. Okay. And then at the time that I do the at the time that the council does say option alternative three, uh, can we also then add in the directing staff to make changes or would that be outside of the context of that motion? Miss CD, do you want to speak to that?

You know, um, it would require a slight rewrite of the ordinance. Um and so the best path probably forward would be to um essentially at the next opportunity immediately after this hearing uh direct staff to um move forward with code amendments and I did hear the makings of a very excellent code amendment in council council president Peralta's initial statement

and and it's in the record uh from the April 8th meeting that um that we s staff suggested that and also reached out to MIP to see if they wanted to be part of that discussion in terms of the code amendments proposed. Okay. Not yet. So, councelor Takulski. Yeah. May I ask Miss Ryan the the point that councelor Chennowith made about this not was it not being a subdivision? Is that what it was?

Yeah. And my point is it it says subdivider and the the language that was used or the explanation that was was made in the packet was that we have to use a definition from the Webster's dictionary um for the definition of subdivider and we don't have the definition of a word within our own code and that definition says to divide into several parts. When you look up the word several in the same dictionary, the world word several says uh to divide into more than two and not many parts, which is a very dangerous definition to be going by, but that's what that dictionary actually says. So if we're going to use the dictionary definition to try to define this, it doesn't apply to a partition of more of less than two divisions. Um that means it does not apply to this per the definitions in the dictionary that we're supposed to be using for this purpose. Um so I think MIP has it exactly right. And one of the problems I have, if I can say this really quick since you gave me a chance to answer this, is that we can come up with all these great ideas to solve this. The problem underlying problem is MIP did not believe we are interpreting the code correctly. That's the issue. That's the crux. So we have a a battle between what is the correct definition of the code. Not that we're making an exception for a group. Not that we're trying to find a way to wiggle MIP's desires through this, but that we don't have the definition correct. And I think that's accurate.

And so the reason I brought that up, if I may continue for a moment, was because it what councelor Chennowith is trying to express, I believe, is also valid using those definitions. And I'm concerned that if we're not if we're not applying the definitions correctly, Miss Ryan, then it wouldn't it it doesn't solve the problem. It only it gives MIP the opportunity to do what they're asking without us changing the code at all because it's not a partition. It's just basically a sing a singular area. So I don't know if you can legally comment on that part of it. Um, okay. Let me I think thank you for asking. I'll take these in the reverse. Um, one thing that I was pondering last uh meeting the the definition of several which councelor Chennowith did quote, I actually think that that still would cover uh a minor partition because I believe in the code a minor partition is three or less. the creation of three or less lots and the creation of four or more is when you jump up to a subdivision. And so I'm not sure that the the dictionary definition of several really answers the question. This is really one of the most difficult exercises, tortured exercises that city councils have to go through, which is to ch to choose from competing plausible interpretations of the code. What I can tell you is that uh typically in in a situation where the the interpretation uh that the council chooses, whichever that is, is challenged, as long as that interpretation is plausible, it'll be essentially entitled to difference if it's challenged at

LUBA. And I think uh it's really up up to each counselor to decide whether the interpretation that was set out um in detail in the planning commission findings is the better interpretation or if the interpretation proposed by MIP as you know very well articulated by council China also uh you know which is the better interpretation which is more consistent with what the city council that adopted this code provision intended. And I believe the planning commission's interpretation looked at the sort of the structure of the code for context in how to interpret this provision. And if I could paraphrase it, the MIP interpretation is really looking at the only only this particular code provision and the use of the word subdivider. And so it's just a two different ways of interpreting it.

I hope that was helpful. Yeah, it was helpful. Thank you for that. And because of that, it does also make that I hate to say the word waffle, but I'm going back and forth because of it. I have a question. Councelor Peralta. Thank you, Mayor. Um Missy, the the city code that McMinnville has in this area, is there anything particularly novel about it? like in terms of of how that this city is using the term subdivide to apply to minor partitions. Is that any is that particularly unusual? Um is is is it fairly common to use the language in this way?

Um you know it's not atypical and uh as as codes evolve over time language does tend to get loose and less precise is how I would characterize it. there there's much imprecision that is built into every city's code. So my my concern that being the case is the harm this will create for other for dealing with other applicants because um if we accept the what I think is a fairly novel interpretation of the word subdivide as it applies to um real estate um then we're in a situation where we won't we'll be not in a position to apply any of these conditions or we can't be certain that we can apply these conditions to other minor partitions. Notwithstanding councelor Chennowith's personal uh experience um that he believes is to the contrary um we've had testimony from our staff that has said that they can't tell us if they're going to be able to um address streets drainage, sewer, water, electrical systems, pedestrian, private drives, and street trees. And so the real question is where what from my from my perspective is how much harm are we going to cause by accommodating this one applicant when the resolution for the applicant is fairly straightforward. They can they can get a letter from the bank and they can wait for the city to come back and adjust this code which we've already signaled a very clear intent to do. So I would like to unless there's further discussion I would like to call the question for for this ordinance.

I I had one further question if I may. Councelor Takowski.

I'm looking at our general definitions in the McMinnville code 17.06.05 05 and it uses the term it defines the term subdivide land to divide an area or track of land into four or more lots within a calendar year when such area or track of land exists as a unit or contiguous unit of land under a single ownership at the beginning of such year. So this is a partition of a singular item rather than a subdivision of four or more lots according to 1706015. That's how I read it. End of comment.

Jesse, do you want to weigh in on that? Uh yes, that that definition councelor or councel is um directly from the statutes at RS92. And I'm just going to politely say that RS chapter 92 has also evolved in a very imprecise way over the years since the legislature began enacting it. And so um it was probably that definition was probably put into the code when the legislature adopted the definition of subdivided land. That's in LS92.0110.

I I would say yes. I You're probably correct there. But regardless, it's in our code and defined and this is the actual proof of the code. It's not a draft. So, I'd say the code applies within the city of McMinnville. And I'm going to take a jump on this and say I move ordinance number 5174. for the second reading. It's the same. Second.

Have a motion from councelor Chennowith and a second from councelor Towolski. Any additional discussion? Claudia. Councelor Chennowith. I councelor Benner. Nay. You say nay. Sorry. Nay. No. Got it. Councelor Giri. Nay. Councelor Cunningham. I. Councelor Tukulski. I. Council President Peralta. No. Mayor Morris. I.

Uh. And ordinance number 5174 is adopted by a vote of order three. Okay, let's move on. So, we're going to go to Make sure I get this right. Empower ordinance memorializing the city council's decision for the empower appeal of the planning commission's denial of SE1-25. That's pages 173 through 210 of the packet. Call on Heather Richards, community development director, to present any additional information.

Yes. So, mayor, I don't have a presentation for this because you at the uh meeting that you had on the 28th of April, you did not um direct city staff to change the findings that was presented to you from the planning commission. This is an appeal of the planning commission decision for uh exceptions to our sign standards for a sign that empower has applied for um at the it was denied by the planning commission based on findings that it was a video sign and did not meet the test for um economic hardship of not being able to use it as a video sign. And then they also had findings that if it was um defined as not a video sign, but just an electronic changeable copy sign, it still did not meet the test for the um hardship and community standards. Uh so what's presented to you tonight for ordinance number 5175, exhibit A, contains the planning commission's decision. Okay. Okay, as the city council members might recall, the ordinance did not have the unanimous support at the April 28th meeting requiring the second reading unless any member requests otherwise. I will ask city attorney David Lightenberg to read the ordinances by title only.

Thank you, mayor. This is the second reading of ordinance number 5175, an ordinance memorializing the city council's decision for the empower appeal of the planning commission's denial of SE1-25. Okay, council have any discussion? So, just clarifying the orientation now has flipped that we would move to approve and accept this if we wanted to uphold the planning commission's decision. Correct. Yes. Exhibit A to this ordinance is the planning commission decision. Thank you. Clarifying question may Yes, councelor Tokulski.

So, a yes vote means that we're denying the sign. Correct. Yes. Okay. I just want to be clear. Thank you. That's opposite of last time. All right. Do I have any other discussion, questions? Do I have a motion? Do I have a motion to adopt ordinance number 5175 or any other option? So moved. So I have a motion from councelor Gary. Second. Section. Second from councelor Cunningham. Any other discussion? Claudia. Councelor Chennowith,

I hate the sign ordinance ordinance, but I will concur. I councelor Benner, I. Councelor Giri, I. Councelor Cunningham. I, Councelor Tolski. I, Council President Peralta.

Yes. Ordinance number 5175 is adopted unanimously. Okay. Now we're going to consider the first reading with a possible second reading of ordinance number 5179. an ordinance approving a zone change to the R3 medium density 6,000 foot lot zone docket ZC2-24 and approving a tenative subdivision plan docket S2-24 for tax slots R44308D 00100 and R44308 AD 00201 upon annexation of tax slot R44308 AD 00100 into the city limits with both tax lots totaling approximately 2.7 acres located at 1465 and 1525 Southwest Cypress Lane. These can be found in your packet pages 211 through 545. Does any counselor need to declare an actual or potential conflict of interest or accuse themselves regarding this ordinance? Okay, we'll now consider the matter of ordinance number 5179. Does any counselor object to having the ordinance read by title only?

Attorney David Lightenberg. Thank you, Mayor. You already did a great job at Thank you.

I'll take it away. This is the first reading of ordinance number 5179, an ordinance approving a zone change to the R3 medium density 6,000 square ft lot residential zone, docket ZC2-24, and approving a tentative subdivision plan docket S2-24 for tax lots R4430 A0010 and R4430 A00201 upon annexation of tax slot R4430 30 A 0010 0 into the city limits with both tax lots totaling approximately 2.7 acres located at 1465 and 1525 Southwest Cypress Lane.

Thank you. I'd like to call on Tom Shower, senior planner to present.

Thank you. Good evening, mayor and counselors. This is the companion uh land use applications uh associated with the annexation public hearing uh that you held earlier. Uh so this is the zone change of uh again the property includes two tax lots. One of which is already in city limits. The other one is uh in the urban growth boundary but not in city limits. So uh with the uh consistent with the annexation agreement this would reszone both properties. Uh the one that's uh currently not in the city limits is county EF80 zoning. Uh that would be zoned R3. And then the uh property that is in city limits that's or should say tax 2011 up there um would be from R1 to R3. So both properties would end up being zoned R3. And then the tenative subdivision plan would be to subdivide those properties into a n lot subdivision uh into phases. And uh this incorporates um uh revisions associated with the conditions that were in the annexation agreement uh for the uh the uh subdivision. The tenative plan in the packet also shows some future uh intended actions uh that are not part of the uh current subdivision application. So this property is located off Cypress Lane. Uh it includes the uh long horizontal property to the north. That's the uh the one that would be annexed. And then the subject property south of that there is a a small piece of right of way that was uh dedicated and uh as part of a uh intended future culde-sac at one point in time. Uh the conditions of approval provide that that would be uh vacated and then when the subdivision occurs and uh is extended south in phase 2 uh called the sack bulb would be dedicated at that time uh at the correct

location. As you can see the property at the south end that shows a little bit broader view. Uh much of the testimony that was received was regarding uh access to to and from the subject property uh off of Emily uh drive which extends up north uh to uh Alexandria there. So um some of the testimony was regarding the limited access uh to the property and again uh some of the conditions of approval uh required uh it's timely uh required uh second access both for pedestrians and uh uh bicycles between the end of Emily Drive and Cypress uh Lane. And then the applicant is also proposing what would be a a private alley that would also provide a physical uh access. Although it's not intended as a public street for general use, it would provide a secondary access that would be available in the event of an emergency too. The uh zoning as noted uh before is shown both the current zoning and the proposed zoning above. Property to the north is currently zoned R3. So this would extend that south. Uh and then the uh surrounding zoning includes a combination of uh residential uh R1 zoning, some R4 and then some where you see just the aerial photos on the overhead. Um those are pockets of uh county unincorporated uh uh zoning. Uh the tenative subdivision plan. Uh this is the uh as it was uh modified through the land use process and incorporated some of the conditions of approval from the annexation agreement uh that include again uh uh the private alley, the bike pedestrian easement running between uh Emily Drive and Cypress Lane. uh the culde-sac extended

south in phase two and then uh an access in utilities easement uh extending west uh to access property located just west of this that's uh not owned by the applicant that's uh somewhat landlocked due to existing development of flood plane uh so that there would be some development uh potential uh that would provide access for that. uh the conditions of approval may require some uh minor modifications to the exact layout here to address some of the utility issues. The criteria for the zone change are provided in uh section 17742 of the zoning ordinance uh which title 17 uh the municipal code is the zoning ordinance. Uh comprehensive plan goals and policies are also criteria for land use decisions. Uh again, there were conditions of the annexation agreement that were incorporated into the uh conditions of approval. And then for zone changes, uh uh the what's called the transportation planning rule also applies uh to to land use regulations such as zone changes. the criteria for the zone change. There are a couple provisions that uh state that when a zone change is dealing with needed housing and uh that certain uh criterion B of that section does not apply and that certain policies of the comprehensive plan are given added weight. Uh plan commission found those criteria to be satisfied. So the plan commission is recommending approval of zone change with the conditions in the decision document. Uh those are predominantly those conditions associated with the zone change are uh mostly uh tied to the uh finalizing the annexation for the subdivision tentative plan. Uh the uh criteria for approval are

predominantly the the design development standards in chapter 1753 of the zoning ordinance with land divisions. In addition, uh we look at the uh standards for the lots uh to make sure that those are consistent with the the requested or approved zoning. Some additional provisions in title 17 that deal with trees. Again, the comprehensive plan goals and policies are criteria for land use decisions and some of those uh conditions and the annexation agreement carried over into conditions for the subdivision. Uh so again the planning commission uh reviewed that found the criteria satisfied with conditions re recommends approval subject to conditions in the decision document. Uh per the zoning ordinance on quasi judicial land use decisions. Council has four alternatives and the staff recommendation is that council adopt the ordinance approving those dockets with conditions adopting the decision findings and conclusions per the decision document as recommended by the planning commission and uh suggested that most room would just be to uh based on that decision document uh adopt ordinance 5179. Be happy to answer any questions you have. Any counselors have any questions?

Councelor Benner. Tom, could you go back to the plot and talk us through how we get access to the 10 lots? There's a lot of lines on that drawing. So, uh, cursor's a little bit Can you speak into the microphone a little bit more? Sorry about that. Thank you. Cursor is a little bit hard to see. Um, would it be easier on the other on my screen but not on the share essentially. Uh let me go back uh one more screen here screens there.

So uh immediately to the north uh Emily Drive terminates uh just with a a deadend street with a a barricade that would be extended south. And I'll go I'm going to switch screens again. And I don't have a pointer that seems to be working, but uh you can see that uh about midway. See if there's a at the top of the picture in this towards the center. Is there a uh old school? See if we close the laser point. So here's the end of Emily Drive right now. Stops right here. Microphone.

Lots of budding. Lots of budding on either side. And so those uh properties would go north up to Alexandria Drive to exit. Uh the subdivision phase one would be the division of this tax 100 into four lots and would bring that uh uh to the south uh to this point. Phase two would extend that down into a culde-sac. So uh this dead end would now have a a culde-sac bulb at the south end that would allow you to exit to the north. In addition, this would be a private alleyway uh that would serve lots that abut it. Um lot one uh currently has a driveway that accesses to Cypress that would continue to do so. There's an existing home there that would be retained. Uh lot uh seven as it's now numbered is the uh other existing home that would be retained that has access to Cyprus. uh the lot submitting the private alley would take access off that alley and then would be able to go either to Emily or to Cyprus and then the other remaining lots would have access to Emily uh as well. The existing homes that are to the west now currently have a a private easement that accesses across uh this property to Cypress generally uh comes up and runs along where the private alley is indicated. uh those would then have access uh to to the new public street. And then finally, the property that's over to the west that's uh separately owned would have an easement uh for when they develop uh the condition for the annexation agreement was uh to accommodate at least two lots uh that would be uh via an access easement, utility easement. Also, Timley,

thank you. Any other questions for staff? Okay. Do I have a motion? Do you want me to read it for you? Yes. I'll also move after you read it. What was you? Do you want me to read it? No, not the whole thing. Just give me Okay. Do I have a motion to accept the first reading of ordinance number 5179 and possibly pass to a second reading? So moved. Second. So I have a motion from councelor Benner and a second from councelor Takowski. Any further discussion? Claudia. Councelor Chennith.

I. Councelor Benner. Hi. Councelor Giri. Hi. Councelor Cunningham. Hi. Councelor Tolski. Hi. Council President Peralta. Yes. Uh, ordinance 5179 passes on its first reading unanimously. Since the motion passed unanimously, I will now ask city attorney David Lightner to read the ordinance for a second reading.

Thank you, mayor. This is the second reading of ordinance number 5179. an ordinance approving a zone change to the R3 medium density 6,000 square foot lot residential zone docket ZC2-24 and approving a tenative subdivision plan docket S2-24 for tax slots R4430 A00100 and R4430 A 00201 upon annexation of tax slot R4430 A 0010 0 into the city limits with both tax slots totaling approximately 2.7 acres located at 1465 and 1525 Southwest Cypress Lane.

Thank you. Do I have a motion to adopt ordinance number 5179 at the second reading? Mayor, may I ask you a quick question? Yes, you may. I know you assumed probably not since we assume

um this I think this is for you. Um uh city attorney Lightenberg um help me to understand the process. Um, I'm seeing that we're creating zoning prior to annexation. Um, in in in in my thinking, we cannot and I know the language of of the ordinance specifically says upon annexation. So, we've kind of caught that, right? Um, which I I'm perplexed why we didn't just annex first, but be that as it may, um, can we as a city, I guess this is the question I'm curious about, can we as a city actually create zone in an unannexed portion or can we only do it by doing upon annexation?

Uh, thank you for putting the question to me, but I'm going to defer to Director Richards and U. Missy, our outside counsel. So, councelor, I'll I'll start and then Missy can correct me if I'm wrong, but um no, we cannot apply a city zone to county land to land that's under the jurisdiction of the county. Um our annexation process that we put together does require um when we annex it for it to have a urban zone on it as it comes into the city. So that's why you see both in the annexation document as well as the decision document for land use the land use uh decision is contingent upon successful annexation. Yes, I don't have anything to add except that um when land is in the UDB, then there there is often a city holding zone or a a pre a predetermined zone that is going to be applied when it is annexed.

Good. All right. I I would move that we approve ordinance number 5179. Second. I have a motion from Councelor Cunningham. A second from councelor Tekkowski. Any further comments? Claudia. Councelor Chennowith. I. Councelor Benner. I. Councelor Giri. Hi. Councelor Cunningham. I. Councelor Tolski. I. Council President Peralta. Yes.

Ordinance number 5179 is adopted unanimously. Now we're going to move on to 8D is consider the first reading with a spec possible second reading of ordinance number 5180 an ordinance annexing to the city of McFenville tax lot R4430A D00001000 pages 5-21 of your packet. Does any counselor need to declare an actual or potential conflict of interest or recuse themselves regarding this ordinance? Okay, we will now consider the matter of ordinance number 5180. Does any council object to having the ordinance read by title only? City Attorney David Lightenberg.

Thank you, Mayor. This is the first reading of ordinance number 5180, an ordinance annexing to the city of McMinnville tax slot R4430 AD 0010 0. Like to call in Heather Richards, community development director to present. Yes. So, mayor and counselors, I don't have much more to present. This is the uh annexation you had a public hearing for earlier. Uh to annex property into the city, you do do that by ordinance and then there's procedures that the city recorder will take from from that approval uh working it through the state system.

Thank you. Do I have any further questions or do I have a motion to accept the first reading of ordinance number 5180 possibly passing to a second reading? So moved. So I have a motion from councelor Chennowith. Second. A second from councelor Benner. Any further discussion? Claudia. Councelor Chennowith. I. Councelor Benner. I. Councelor Giri. Hi. Councelor Cunningham. I. Councelor Tolski. Hi. Council President Peralta. Yes.

Uh, ordinance 5180 passes on its first reading unanimously. Since it passed on its first um reading, I'd like to go to a second reading. Councelor or excuse me, Attorney David Lightenberg. Thank you, Mayor. This is the second reading of ordinance number 5180, an ordinance annexing to the city of McMinnville, tax slot R4430 A0010 0. So moved. I have a motion to adopt ordinance 5180 by councelor Chennowith. Do I have a second? Second. Councelor Benner has a second. Any further discussion? Audia. Councelor Chennowith. Hi. Councelor Benner. Hi. Councelor Giri.

Hi. Councelor Cunningham. Hi. Councelor Takulski. Hi. And council president Peralta. Yes. Ordinance. Ordinance number 5180 is adopted unanimously. Thanks for being here. Okay, everybody catch your breath. We're going to go on and we're almost done. So, we're going to do reports from counselors on committee and board assignments and also department head reports. All right, Richards, do you have anything that you would like to share?

Um, I don't have anything additional to share than the work we've brought to you tonight. uh to but one thing to just let you know our natural resources program um if you recall our long range work program had several things we were trying to get done by the end of the second quarter mostly by the end of the first quarter we've succeeded in all of that except for our natural resources program we did get a communication from DLCD um after reviewing some of the code uh provisions proposed code provisions of amendments that they'd like to see us make. So, we're we're working with them on that right now. Um, and that will come to you in July. July 14th will be the final for that. It did go through planning commission already and it's not substantive, but the changes that are being made, but we do want to sort of refine the work a little bit.

Right. Thank you for that, Chief Wood. The WCOM uh budget committee met this afternoon. and they passed on a recommendation to the executive board that they will vote on at their next meeting. Uh I believe it's next week. And then uh the only other thing I have to share is on Saturday the PD held six interviews for police officer applicants. We found two that we have moved to background and we have a third that we have a pending uh chief's interview coming up with. We were only able to interview him online on Saturday. So we'll get him here in person for his second round of interviews.

Great. HR Director Vicky Hedges. Uh only update I have tonight is that uh we are moving forward three applicants for the parks and recck director position. Uh and the meet and greet will be held on May 22nd. You all should have received an invite in your email this evening. Thank you. Public works director David Hunseer. Uh just real quick um David instead of Goff. Sorry. Sorry. David's a good-look guy. It's all good.

Sorry. He's always weathering his suits and no, sorry. Um, so of course forgot to mention this, but we received delivery of our Meridian uh barriers today. So those will be uh deployed Friday and for the UFO Fest. So you'll see those out there. And also, I'm going to try my luck a little bit and do this a little informally, but we are uh currently putting together the pack for the transportation system plan. We need two city councilors. I'm kind of hoping just two of you raise your hand and then this is just done. But I'm already more than two. So it looks like we're going to have to do we're gonna have to go through a different process because I already saw three hands go up. So we're going to have to figure out a way to how we're going to select only two

or councelor Gary is going to be on it because he asked from the very beginning. I'm on two different was that councelor Cunningham who was the other one person. Okay. So, so um yeah, that's fine. You're Carson Benner and um Zach Gary. Oh, man. My luck is holding. I'm not going to ask anything else. Okay. I It Scott Burke.

Thanks, Mayor Council. Um we've just been doing a lot of uh planning and prep work. We're trying to knock off a firewall replacement before the end of the year. Um doing a lot of planning for an upcoming phone replacement um phone system. both of which we'll talk to you more about at our budget report I think on Monday unless we really go at warp speed on Thursday but more to come. Thank you Claudia Cisnerero city reporter.

Yes. Uh now that the annexation process passed I will be pivoting some of my work so I can get that done. It is a short timeline so gotta move fast on that one. But as well I am working on the November 3rd general election packets. those the first day to file candidate filing is June 3rd so I'm hoping to get the packet out on our city website by mid next week um but yes more to come on that thank you Katie Henry finance director so first of all for court um I had happy news that we were our implementation was starting we had got someone assigned well now we're waiting to be scheduled so apparently having someone assigned to us doesn't mean that we're on their schedule yet. It just means we have a name. So, it is back sort of on the back burner while we're waiting to get the next step. So, that has not moved forward like we had hoped. Um, and then in finance, it's just budget, budget, and all things budget.

Thank you, city manager Adam Carbon.

Thank you, Mayor. Um been a busy couple weeks continuing to work on park and wreck stuff with the team around that to have something back to you guys on June 23rd and then uh and worked with staff on a gymnastics programming piece and how that would look in a new facility and the space requirements for that. So, we'll fold that into the discussion as well as uh engaged on uh some rock climbing stuff as well that multiple counselors have asked me about in one-on- ones. And then uh attended the all city lunch last week that we gave out years of service awards. We had a few 25 years of service as well as we had um Steve Ganzer who's finishing up 31 years and will be retiring um at the end of June. So I remember him back from my park and recre soccer days and it's been great to see all the work he's done for the organization and his commitment to the city. um at McMinnville 150 planning attended that and we have uh a logo for that. Um I attended the the event at Lynfield for uh Mark the new president and him being instilled that through their various ceremonies and that was a neat experience. and uh also attended the MSD long range planning our long-range facility planning meeting in preparation of their November 27 bond efforts and uh went through a financial exercise on one of the school projects and that was an interesting experience but uh informative and uh intended the meridian barrier deployment today to understand what lift that's going to be for public works staff as well as some of our community partners that will be

utilizing those to increase safety downtown during events. Thank you. Thank you. City Attorney David Limeberg.

Thank you, Mayor. Um I just wanted to let you know I had the opportunity to attend the Oregon City Attorneys Association um spring conference just this last weekend. Um it was great and informative. There's a great group of attorneys um with a a broad expanse of experience. I was able to network with some of them um and a lot of really interesting speakers on the current legal landscape, things coming out of the executive session and a lot of really good stuff that I hope continues to make legal work here beneficial to you all. Thank you. Great. Thank you, city councelor Scott Cunningham.

Yeah. So, I had uh one meeting this last uh week which was the um affordable housing. Uh and in that, as uh council may remember, we kind of tweaked a little bit of the construction excise tax uh program program uh metrics. Uh and so, uh Evan had brought those back to us to to line out how those would now work. Um so very hopeful that that uh is coming to a conclusion which will then allow us to actually put out um uh the the program or to initiate the program to get the different uh grants uh put out there. So which will be great. Uh in the name of grants, we had a couple updates on grants as well. DLCD um for the next fiscal year housing grant uh opportunity. Uh and then also OCS home ownership language access and community outreach and engagement grant opportunity. Uh and then finally uh Evan uh brought it to our attention that we probably last year we we created the severe rent burden meeting at kind of the last um portion of the year. We definitely feel like we are uh going to be listed again as a severe rent burdened uh community and so we are already starting to plan a uh bigger meeting with a a bit more outreach and it might actually end up being two different meetings um so that we can include our Spanish speakers in a in a better way than we did this last time. uh followed up with a bunch of updates from our uh partners out there in the community.

Council President Peralta.

Thank you, Mayor. Uh I don't have a report from last meeting to this but I would like to um offer an advice suggest uh item which is that I think we should ask in light of the um the uh decision on uh ordinance 5174. Uh, I think we should, uh, uh, request city staff to review the current minor subdivision policy to, uh, determine that whether or not, um, we can achieve all of the necessary things that are in the current code in light of those changes and come back with recommendations on amendments to the code to that effect.

Thank you. Do you have anything else besides Okay, thank you so much. um my report I was able to sneak away for a personal vacation so my list isn't quite as long. Uh water and light commissioner interviews I attended those with two other member a member of the water and light commission and general manager John Deetsz and we appointed Andrew Anderson tonight uh Yamhill County Economic Alliance uh where we discussed opportunity zones that can be applied that are for the county as well as for the city. I also attended the city's 150th birthday committee meeting. I joined Adam at the all city lunchon on the 7th. On Friday, U. Mayor Malcolmson, who's the mayor of Lafayette, her and I were the assembly at the McMillville Adventist School where we got to answer all kinds of questions from their students because the winner of the McManville Elementary, if I were mayor, attended McManville Adventist School and we hosted a pizza party for that class. It was a lot of fun. I'd like to thank Noel Amaya, our community communications manager, who got the pizza together and attended it with me as well. So, I appreciate all she's done for the if I Were Mayor program. We have now handed out all the prizes for that. On Friday, I also attended the inauguration ceremony of Lynfield University President Mark Lean. I was honored to be able to say a few words on behalf of the city during the messages to the president portion of the ceremony. It was a pleasure to be there, a real honor. Um, yesterday I met with county commissioner Kit Johnston for our an our monthly meetup. We also discussed opportunity zones and talked about the questions of a committee that I am considering being a part of which is local public safety coordinating council. I also had my monthly meeting with superintendent monthly monthly meeting with superintendent Courtney Ferua where we talked about safety

attendance code compliance and community engagement. Councelor Gary, thank you. um um met with Murak. Only thing on the really on the agenda was a facade improvement grant for the Pquet Hotel which was awarded. Um there's also opening on Murak committee. I don't know when that closes, but I believe it's currently open still. I'm getting a nod. It's currently open May 31

until May 31. And it's the citizen at large uh position. So um pretty open there. Uh I also attended the city lunchon. Um I I also attended the MSD long range facility planning um event. The visitville hasn't met, but um uh UFO fest is coming up this weekend. Look forward to helping out. As always, I'll be hosting the alien pet costume contest and practicing my recycling by using the same jokes every year. If you haven't heard them yet, come on down. Uh should be good. Thanks, Councelor Chennowith.

Thank you, Mayor. Um, I I uh life threw me curveballs this last couple of weeks, so I did do not have anything to report. Um, I do want to say thank you to those that were aware. Uh, not to put anybody on the spot who wasn't aware, don't feel bad at all, but those who are aware and reached out to me expressing their concerns about my mother. Had a pretty good scare this last few weeks. Um, and uh, yeah, with that, that's my report. Councelor Tokulski. Yeah, the airport commission has not met. They meet on the 19th, which is next Tuesday. So, I'll have a report next time. Thank you. Councelor Bennard, I I still don't have any committee assignments and I'll tell you after this meeting where you're going to go.

Uh, the uh, on onboarding has been going on. Um, and it's just been a real treat to be out talking to the great employees that we have. I got to talk with the engineering group. Um, toured wastewater, 1 bill761,000, no million gallons of water treated, 14 pump stations. Um, the facility is 30 years old, but really looks good. They they're really fantastic job maintaining that. Um, then went to public works. We have 120 miles of roads in McMinnville, which I thought was interesting. I got to see the brand new street sweeper or a demo of the brand new street sweeper.

Did you get to drive it? They didn't let me drive it.

Uh, got to see their office that needs to be replaced and will be shortly. So, that's a hopefully the public doesn't go out there. Um, uh, toured the airport. really excited about warehouser parking some helicopters out there. That's fantastic. And getting a terminal building that we are not embarrassed about. So that's I think Chris and I have been beating this drum that the airport is just such a great resource and we we can do better. Um then visited with the police chief um 600 dog related calls a year. It's just really staggering. six to 800 automated alarm calls a year. Um, and so it just that's that's just a lot of activity that's taking the police away from doing good work. Um, we have three canines, Storm, Mako, and Bluey. I didn't get to meet them, but I now now know their names. Um, aquatic center, 5,000 kids a year survival swim, which is staggering. very exciting about that. Uh senior center um really I was there today. They were doing um food distribution, coffee top. It's just amazing the the work that's happening there. And they have a joke of the day. Zach.

So don't share it because he needs to just use his old ones. That was a tease.

Uh community center. They're still talking about how happy they are to have an elevator. Um, on the tour I was reminded that I had my 35th birthday at the community center. I'm on a fast train to 60. So, that's been a long time. Um, 26 gymnastic classes a week. Really exciting to see those little kids just bouncing all over the place. And hopefully we can for the taller kids we can find something place better. Um, McMinnville School District long range facility. And mayor, thank you so much for the page numbers. it as the new kid on the block. It really helps navigate um large packets. Thank you.

You're welcome. And I'd like to thank Claudia for that because today I asked her when we if we have over 500 pages that we look at on here and it's really hard to keep them straight. So I asked her, can you just share the pages so we can easily go back and she went and did that all today and we'll continue to do that. So we will be sharing that. So thank you. Thank you. Did I miss anybody? I can't read that. So, is there anybody online that needs to be Okay, just a just a quick update for counselor Benner. We actually had an officer get fairly seriously injured on one of those dog calls this afternoon. So, Oh, no.

All right. Well, I'm sorry. It's terrible. Okay. Um, last thing that we have here is so in your packet you have your March 2026 cash investment report. You also have your third quarter financial report and you have your third quarter ARPA report. Did anybody have any questions on those reports? Councelor Cunningham. Um this uh going through uh general fund continued expenses by the department. Um police department looks like what page are you on? Uh uh 548. 548.

548. Yeah. Um I see that like the engineering was called out with vacant positions. I'm assuming that's vacant positions as well for the police. Oh, for the 67% you're correct. I did not grab that. Yes, they're they're getting close to having them filled at the end of the year, but they've been vacant for the first part of the year. All right, any other questions? All right, I'm going to adjourn the meeting at 8:43 p.m. Thank you everybody that came and stayed.