City Council - workshop

just so the audience knows we're waiting a few minutes to start the meeting. Cause we're waiting for the architect who's in traffic. So it'll be a few minutes. All right, good evening. It is 536 and I'm going to call the city council work session meeting to order. I'd like to call on city manager Adam Garvin to present.

Thank you, mayor. This evening we have a work session in front of us around a concept design for a new park and rec facility. This is a culmination of direction that you guys gave at your January work session after the last bond of 98 and a half million failed and that was pared down from an initial around $152 million concept that came out of the MACPAC process over a number of years. So with us this evening, we have OPSIS architecture, we have Erica and Jim, we have Dave and Paul from Pence Construction, and then we have Ken Ballard online who will be focusing on the operations model. That was one of the feedbacks we had. in the last bond vote. And your guys' direction is you wanted to have a little bit more operational context. So we'll go through the presentation tonight and then open it up for any questions after that. So if you could write down any questions you had, I think with the amount of passion around this project, it'd be best served to get through the presentation before we get down any rabbit holes and then address questions at the end. With that, I'll turn it over to Erica. Thank you.

Great. Thank you so much for having us here today. Uh, so today we're going to walk through, uh, overall project goals, a little bit about the schedule and what we've been up to thus far, walk through the program as well as the concept design, and then some costs and operations information, and then our next steps. So I'm going to hand this actually back to Adam. Who's going to sort of set the stage, I think a little bit for us on these guiding principles.

Yeah, so these guiding principles are what came out of the MACPAC process, as well as some of your direction at that January work session. Our main focus here tonight is to get direction on if you guys have the information that you need to go for a November 26, or if there's additional information or concerns you guys have that need to be addressed and target a May of 27 vote. But none of these guiding principles you see here should be of any surprise to you. They're what we've been working off of since the MACPAC process concluded. Thank you.

And in terms of the overall schedule, you can see obviously we're here at the third week of June. We've been spending the last few months with the steering committee, really working through refining that program and making sure that we're meeting all of the community's goals on that, as well as working through design options and concepts for the specific site that we're looking at now, and then developing operations and cost estimating associated with that. And so tonight we're here to present the concept design to you all. And I'll turn it over to Jim to walk us through the program.

Thank you. Yeah, it's exciting to be at this point in the process. I was involved in the very beginning doing the needs assessment as well as working with the MACPAC. What we've been really trying to do here is get an alignment between the space program and the budget expectations. While meeting all the needs of the community, there are some basic program elements that just need to be part of this project for it to work the way the community would expect it to. And also thinking about how we gain some of the efficiencies of elements that are in the community center right now and your existing aquatics, how we bring them together in a more efficient package. And so that's what this program starts to lay out here. We've organized the building program into four categories of aquatics, recreation spaces, community spaces, as well as a number of support rooms as well. We're looking at a building in total that's going to be a little less than 60,000 square feet all in. And just starting with the aquatic spaces, We want to take what you have now and make it better. What we have listed here is a consideration of kind of the base building program, which is a eight lane, 25 yard aquatics competition pool. Very similar to what you have now. But we're also looking at a recreation pool, a warm water pool that would have quite a few different features with the zero def entry play toy elements for kids. There'd be a larger program pool that works really well for water aerobics, as well as a couple of lanes that would be great for swim lessons or warmup. So a very different type of recreation pool than you have now. We also realize that in the ideal world, we'd have an eight lane, 25 yard stretch pool. What that means is there's a bulkhead. It's an island element that kind of moves along the width of the pool. And with the bulkhead, we would get an additional three lanes. which is extremely beneficial. So when the swim to high school swim teams practicing, you can still have recreation exercise swimming going on. So it adds an additional 2000 square feet. So the building area would increase to roughly 62,000 square feet. We'll go on to the next program element, which is really recreation. The focus here is certainly having a really good gymnasium space that would have two courts in it, a full high school size court, as well as middle school courts that would accommodate pickleball as well as volleyball can be an indoor playground. It's a real important element for your building. We're also looking at a gymnastic space. We understand what a vital and important program that is for the community. We've done a lot of detailed programming to make sure that the area that we're allocating and layout really works well. There would also be a cardio weight area or fitness gym that would be part of this. That is also a super important amenity and also one that generates revenue as well. So when Kim Ballard talks about operational costs, having that kind of right mix of program is important to consider as well. And then there would be a group exercise room, again, very flexible for Tai Chi and yoga and Zumba and just all sorts of core type of spaces. Then there's community spaces. That's the kind of red bar up there. And that includes, in this case, an event space that would also host birthday parties. It could be also utilized as a serve multiple uses all day long so they're not sitting empty. We also have a very flexible classroom space for community meetings and just classes. It could be used for art and crafts, just a lot of uses with that. I think that one of the program elements that would be nice to have as an add on would be a larger community room. We're looking at a space that might seat up to 100 people could be subdivided. But at this point, keeping in mind, you know, the budget target, we see both the stretch pool as well as the community room as being add on elements to the program. So then how does that program fit on the site? You got a great site here. I mean, it's amazing. It's a gateway to Joe Dancer Park. You can get at it from Marsh as well as Riverside. It has a relationship to nature trails, Yamil River. I mean, it's quite remarkable. It kind of speaks to, in many ways, the qualities that make McMinnville a unique place to live. So then how does the program actually fit on this triangle of property? We've positioned the building footprint so it's pushed up towards the northwest corner, close to the intersection, which maximizes its exposure, but also concentrates our site development cost as well. We're considering that the building from a costing standpoint also just kind of synergy between program elements would be a one-story building and not a two-story building because of the cost of Elevators and stairs so you'll this footprint represents a one-story building with the parking located to the east in a very efficient layout. It's about 150 parking stalls. We'd have ADA parking, a really good drop-off area right near the entry to the building, which also faces towards the east. The blue block represents the with the idea that it's really facing out towards Riverside. There could be windows there with consideration that we don't wanna create glare in the pool, but north facing windows are more ideal than certainly west or east or south. So giving the pool, which is such a primary feature, the kind of best exposure from the public driving into the site. And then the kind of peach color, orange color program are all the kind of larger recreation spaces. that face out towards the south where there could be a future development of sports and activity spaces. So you can see there's some large real estate there that really is ideally positioned even for the gymnasium and those spaces to open out to those outdoor fields that could be developed at future time. And then we've also considered with swim meets and other needs that there could be some event parking, overflow parking as well. And again, that's considered as a future development, but it's set up ideally for those amenities to happen. This next site plan looks very similar. Maybe do that again, Erica. It shows the stretch pool configuration where it extends out towards the north. And then we'll just go in a little more detail on the floor plans. We've tried to come up with a very efficient layout. But one that also is very exciting and has lots of synergy between program elements. So the main lobby and entry area faces out towards the east that could be a really nice entry court has landscape and seating. There's these kind of rose colored program elements. Just next to the entry vestibule is the classroom. That's a multipurpose classroom. And then off the lobby is where we have this special event spaces for birthday party rooms. They could have large window looking into the recreation pool. Views from the lobby into the pool as well. We'll have the aquatic staff that are kind of ideally located with good access and proximity to the pool off of that yellow corridor that gives you the public access to universal changing rooms. We're proposing seven of those. That access opens up directly to the recreation pool into where the zero depth entry is, which is really important for safety reasons. They aren't entering near deep water. And off the zero depth entry is where the play features would be for kids. There's a larger rectangle for just program area up in the kind of northeast corner. And then you can see two lanes that would be for lap swim, swim lessons and warm up. There's a wall separating the recreation pool from the lab pool. That's really important. When there's swim meets, we want to be able to contain activity in the rec pool from the competition pool. Also, each of those spaces actually has very different mechanical requirements. So environmentally, it's more energy efficient to separate those two spaces as well. The larger binary locker rooms would open up directly into where the lap pool is. Again, that's eight lanes, 25 yard in this layout with the starting blocks or swim meets located up towards the north. We know the importance of spectator seating. That's always been a key element in your existing aquatics facility. This would sit, seat, excuse me, similar amount that's sized for 400 spectators. It's not, we don't have a second floor, but what we do have is an elevated kind of prospect. pushed up about four feet or so. So the first row of seats will have good sight lines to the water. And then of course it steps up from there. And so we think this is a good, maximizes good seating and views. Behind it, we're getting good mechanical access to the pool mechanical. There's a service yard off of that that is accessed from Marsh Street. And then directly across the hallway, starting on the right side is where there would be the cardio weight fitness gym next to that, the gymnastics gymnasium. It's also a size that it could, depending on the future, become another basketball court, a court space. But we understand the vitality of gymnastics. So just kind of planning that. future proofing this layout for maximum flexibility. There's a good zone of gray color between the two. Those are important storage areas. These spaces only work well if you've got adequate storage. That's particularly important for gymnastics, also the gymnasium. I described earlier the types of courts that are there. very flexible space. It will have a curtain that can be drawn down so you can have two different activities happening simultaneously as well. And then this plan is very similar, except it shows the layout of the stretch pool as well. And we have another variation on this, which shows then the community room addition down in the southeast corner of the building plan. The way this is actually a pretty ideal layout because you could have direct access to community room without going through the front entry. You could even close that wing off with restroom access. So really good for rentals as well as having a possibly a really nice large outdoor event space. during the summer months. I mean, it could be quite popular to be able to have that capability as well. And you get fantastic views out to the woodlands and Yamhill River beyond. So those are the plans. And we also have given consideration to the building massing and character. And these are just some kind of inspiration images that we drew from even going back to some of the feasibility study work, but certainly the site itself, is inspirational, the topography just infused to the rolling hills, the agrarian landscape, which also includes really interesting buildings, barn buildings, and just farm compounds that are made up of buildings that have pitched roofs, the use of wood, kind of a Northwest style of warmth. And then also just keeping in mind McMinnville has such a warm, inviting character as a small town. How can this facility kind of evoke qualities and make people just feel welcome and inviting? So we took that inspiration, started to think about in terms of how the character of the building might feel on the site. This is a bird's eye view just to kind of get you oriented. You can see the warehouses on the left-hand side, that's Riverside. And there's a T street that we're tying into that would be access to our parking lot. The building positioned at the intersection of Marsh and Riverside. A little hard to see here, but looking at pitched roofs that When you look at the overall composition, start to evoke feelings that are not unlike the foothills that surround McMinnville. The view from the northeast as you approach from the parking area, the entry being really announced as well as drop off. You can see the nature beyond. These views are a little kind of dark, but what we're trying to show here as you look from that important intersection is together the roof scape starts to take on a really nice quality of that evokes a kind of the rolling hills. We're looking at a metal siding. It would be a profiled siding running vertically that has a variety of kind of patterns of indentation and scale that starts to at least and also in color evoke kind of the quality of wood, but making that a much more durable material, which is really important consideration. And as you drive by the building, there are north facing windows into the natatorium as well. So you're getting a glimpse of the aquatics activity. This is turning the corner as you approach the entry, getting some windows into the recreation program, but really making the entry feel very, There's no question where to kind of approach. There would be a large roof overhang. So when it does rain, you're protected or protected from the morning sun. And then there's windows as well into the classroom. It sits right next to the main entry. little closeup view of the entrance suggests that we might be looking at building the roof out of a mass plywood structure. We've used that on at another community center project. It's cost-effective. It goes up very quickly, but the idea of bringing wood in the roof form, into the project design, as well as perhaps a entry wall that maybe it holds signage to the building, but brings the warmth of wood as you approach. So it feels friendly and warm and then transparency into the pool as well as those party rooms. This is coming around the corner, viewing it from the southeast, where future recreation fields would be. Having windows into the cardio weight area, where they're actually able to look out to some of the beautiful landscape beyond. Having, as I mentioned, kind of a backdoor entry that could open out to the fields as well. And now we want to share some of what all this meant. We working closely with Pence on estimating the cost.

So I'm putting the cost together for the base plan, which is the 59,500 square feet. The building cost comes in at 53.48 million and the site work at 7.29 million. And so for a total construction cost of 60.77 million, and then to get to a total project cost, we add on a soft cost of about 32% and we'll walk through what that means in just a moment. But that means that our total cost then comes to roughly 80, $80 million. And what you're seeing in this diagram here is in thinking about, you know, how to do this most cost effectively, but also in a way that's going to be durable and long-term for you, looking at three different systems for how we might build it with the natatorium being metal frame and, uh, mass plywood. Um, sorry, I'm sorry, CMU and mass plywood. So that would be CMU giving you very durable walls with mass plywood overhead. So you get to bring some of that warmth into the natatorium space. And then the gymnasium area being a pre-engineered metal building, which is a very efficient and cost-effective way of building. And then in between that, having sort of a metal frame and mass plywood area. So the wood will carry out into that long corridor that connects all of the activity spaces along it. And then similar systems, again, for the alternate that has the stretch pool as part of it, that increases cost to essentially 81.5 million. So about a million and a half more for that stretch pool area. So as I mentioned, the soft cost that typically comes out to about 30, 32% in increasing cost to the total project cost. And that typically includes about 12% for architectural engineering fees, a two and a half percent for permitting fees, about a little less than a 1% for testing survey inspections. You have commissioning, uh, you have builders insurance, uh, an owner's construction manager, which would be an owner's representative FF and E which stands for, uh, fixtures finishes and equipment, which is 3%, which is typically a little higher in a rec center because you have all of the equipment that will be used in the cardio weight area. And then an owner contingency, which is 10% so altogether that comes to about 32%. Now we're going to hand it over to Ken Ballard of Ballard King, who is our recreation consultant who worked through the operational and cost recovery for the project.

Well, good evening. And a couple of key points to consider as we kind of start on the operational aspects of the project is that, you know, by combining two buildings, your existing community center and the aquatic center into one new building. We get certainly some real efficiencies from this, not only from a staffing perspective, but just having everything in one building. It affects maintenance, energy costs, especially even with a new building, much more energy efficient building as well. We're also, because we have the elements that are currently in the existing aquatic center and community center, For the most part, combined into this new facility, plus we've added some new amenities in fitness and some other things, we're able to have a more comprehensive facility that will attract a higher number of users. And the fact that everything's right there in one facility makes it more accessible. appealing to most people. And also we can generate higher fees as a result of that. And that's really seen with the addition of the recreational pool, which is one of the strongest draws to these types of facilities, as well as the fitness amenities that are the greatest impact on additional revenue and fees being brought in by the facility. So in the end, we also have the ability to provide a broader base of recreation programs to the community. And so we're generating increased usage of the facility for program purposes, as well as also impacting revenue production. So in the end, it's a much more efficient delivery system for parks and indoor parks and recreation services than what you have now. And that's kind of all the lead in then to what this all means from an operational perspective. So we have a lot of numbers up here. In the red box is what we've calculated as the operating cost for the new facility as Jim just went through here a few minutes ago. And what we've done is projected our operating costs out to 2029, which would be the soonest a new facility could open. And so we've identified operating expenses in a nearly $4 million, and that's all in, that's staffing, that's utility costs, that's just maintenance costs. All of that's been included in this operating budget using your same budget format that you have now for Parks and Recreation. We've then generated the expected revenue production for the facility. And again, with a newer center and with the factors that I just mentioned, we can generate about $2.3 million in revenue in revenues from a variety of sources, whether it's admission fees, which is the greatest single source, to program and use fees from that to rentals and other factors as well. So that gives us an operating deficit of about $1.6 million a year. And again, projected out to 2029. And it cost recovery about 59%. So comparatively, we took the existing parks and recreation budget categories and took portions of it that relate to this new center and did a comparison of 26 budget and also 26 budget projected out to 29. And so it's not the entirety of all the parks and recreation budgets. It includes all the aquatic centers, since that would be absorbed into this, all of the community center, and a portion of recreation sports, which is really these sports that take place indoors, but does not bring in the outdoor sports that take place at Joe Dancer Park and other locations. And then also portions of the administrative budget, which is primarily a segment of the Parks and Recreation Director salary assigned to this facility. So you can see when we look at the 26 budget and also the projected 29 budget, if we increase expenditures by 4% and revenue by 4%, we're in fact, if you look at the difference in the last two boxes, we're actually a little more efficient operationally and dollar-wise with the new facility than you are with the existing facility. um facility the way it is facilities the way they are right now so we're looking at reducing your current operating subsidy if we look just at 26 of about 160 000 and if we project that out to 2029 and this is a little more of a of a subjective uh challenge, I guess, to get to these numbers, but that could get up as high as about $450,000 savings from the projected 26 budget out to 29. So operationally, it's not going to cost you any more money than what you're already using to support these aspects of your parks and recreation budget. Keep in mind, this is not the entirety of the parks and recreation budget, but a portion thereof. So there's our numbers. We have a lot of backup to this that gets us to where we got these numbers for both expenses and revenues from staffing numbers to again, the fees and charges and the number of admissions and all of that to get to these particular numbers.

And then this last slide here is just combining those pieces together, which is giving you the cost of the base plan at roughly $80 million. And then the cost recovery, which is in roughly 59%, which the current subsidy is about in 20, $29 is about 2.1 million. And the subsidy for this project would be about 1.6 million. So the next steps would be, you know, we have some time before this needs to go forward. So any updates that we get from feedback from you, we can do, we'll do that effort, providing the additional information that you might need on this. And then we'd love to open it up for discussion and just hear your feedback on the building program, the concept design, how comfortable you are with that total project cost and any additional needs you might have for thinking about a November bond.

Okay. Sorry. You guys staying there or how do you want? Yep. Okay. We're going to stay there. I just want to make sure. Okay. Counselors, let's start with some questions. Okay. I have a question.

It's our contractor. Yeah. Maybe some questions you have for him as well.

Let me just a question on, so I'm looking at the stretch pool and just looking about decking size and where the team sits. So I see the spectators is there, it's hard for me to really envision the size of this decking. Is there adequate room or is there a room designated on there for where the teams set?

I would say this is, um, it has the minimum probably deck area that could be increased. And probably as you're mentioning there are areas that I was actually just looking at it earlier thinking, well, does that mechanical space need to be an L shape? Could you pull some of that gray rectangle back? And all of a sudden that becomes a great team kind of organizing area. There is extra depth for the swim team behind the starting blocks. This plan is, probably doesn't show it as well as the prior one where there is a little more room. Sorry. Yeah, you can see there's more room in our plan. So there's, there's a little bit of coordination between the drawings that need to be tuned up a bit. But I mean, I think you're, you're raising a good question and needs to be, needs to work really well.

I have a couple, but thank you for all the information and clipping through the presentation. It was very well laid out and very exciting to see the drawings get debuted. A handful of questions. Back to looking at the gym. And I was able to cheat and zoom in or enhance minority report style on my screen here. But can you talk through what the list of what are all the things that you get at the do in that gym? I know it says like middle school gym, but how many basketball courts of what size and how many pickleball courts are they going to be able to set up in there? And can you walk laps? What can you do in this gym?

Yeah. Well, if we showed all the lines in here, we did just emphasize a few of the basketball courts for scale. So beyond the basketball, you would get two full-size volleyball courts, three pickleball courts. They're a little smaller, so there could be one in the middle. You also have the capability with having a curtain that drops down that you can have two separate activities. Indoor playground is also something that happens a lot. That can be its own separate space, but this having good storage for the gym allows that activity to happen. within a gym space with a lot of the inflatable toys and so forth. That's not untypical. You could do futsal in here. There's just a variety of things. It could be a community gathering space, you know, high school graduations, you know, there's music in here and kids are hanging out. So having the capability to, for the gym to open up, to the outside for summer camps and indoor outdoor activities. Just it's a really good space. So those are a few of the things that come to mind.

Very good. Same ish question, but for the gymnastics space, one of you could talk through what that gymnastics space is gonna let us do. I'm used to when I do my third position in ballet, I hit my head on the ceiling in our current space.

Well, we are looking, speaking of not just plant, but volume, we're going to have 24 feet clear in that space, which is also the type of clearances we'd have in the gymnasium as well. So that's very appropriate for gymnastics. we're looking at an area that would have beams and bars in a variety of configurations. There's also a sprung floor area and mats that for tumbling, a lot of different activities. So there's more boxes there than I think I can even describe, but the idea that all the various activities that you have right now in your space, which is a great space You can get those here as well. We're also creating a kind of a safe zone where parents can, as you come through the main entry, there'll be some seating. So we realized that, you know, friends, parents want to hang out there or kids who are changing, you know, or getting ready to between classes. So that's, that's another important space. There'll be a dedicated office and then close to 700 square feet for storage, which is super important as well.

Two or three or five. So. I knew you would. Several years ago when I helped the original backpacker, I served one of the subcommittees through that I served on was the actual aquatic side. And it was interesting to learn sort of this, when you want to host meets, there's a thousand different levels of types of meets, you know, from very local to way up to, NCAA and then there's different types of those and then different types of those and all the acronyms. And each of those are dependent on square footage of deck space, square footage of water, number of locker rooms, number of dedicated locker rooms, where those dedicated locker rooms are placed. What roughly what level and type of competition does this design in the, I guess, in the base, let us have. And then what's the difference as we look at making, you know, proposed or strategic investments additionally in that competitive nature?

Yeah, the, we haven't gotten in and designed in detail. As you can tell the, the locker room area, the binary locker room, but yeah, I think there's ways that we can design that where it can function or part of it for team locker rooms, because that is an important aspect. And when they aren't being used for team locker rooms, they're available for the public. So I think the premise of this layout and, you know, a lot of it has to do with, you know, alignment and budget expectations. We're trying to be as efficient as possible. So it's a great question. I don't think this plan fully addresses it, but we need to be creative about how we can provide for those needs. Uh, but some facilities have just purely dedicated team locker rooms and this plan doesn't accommodate that at this point, you know? Um, You know, we also, the universal changing rooms can take up a lot of need. I think, you know, and it could be, there's just a smaller section of the binary locker rooms that are for, you know, more laid out for dry land. So you have activities going on in the gym and gymnastics, and maybe the back half of that facility starts to work more for team locker rooms. You've got a great head of your program here with Josh, and I know we're gonna be able to, with his guidance and all, figure out the very best solution. I would say the deck area, we're focused on just trying to make it kind of code minimum within just expectations, but we realize some of that deck area needs to increase. And so that's, that is obviously a next step and something that, I mean, we can modify these plans now with some of that input we're receiving tonight to make sure the plan represents what's important for your community. I know, Ken, do you have some additional thoughts you'd like to add?

Well, the intent of this was to somewhat, Zach, replicate what you were doing now in terms of swim meets. And it does that. I don't know that it takes it much further than what you currently have, honestly. It's both in terms of seating capacity and in terms of numbers of lanes, especially in the base model. And now we get some more for the sake of... of a meat some more warm-up lanes out of that which is advantageous from a meat perspective but i would say you're still and you can in some respects use the lanes in the recreational pool although that starts to impact your use of of that aspect of the pool. And that's one of the reasons the wall is there. So you can keep the recreation pool open during swim meets and other activities in the competitive pool. So I would say it's similar to what you're doing now in terms of the level of types of meets that you would bring into the new pool. It's not going to grow at a significant margin from where you currently are.

Okay, very good. And another question. And following up on the spectator seating, I think we have listed 400-ish here. And I believe while it probably feels like we could pack more, maybe we do, the listed capacity is 380 currently on our seating. So this represents an increase in the allowable capacity. So it's a good point of reference. Maybe I'll try and get a question in for Dave here. But when we looked at bringing the wall, the dividing wall back in mostly for a function, you know, so we can have meets and have recreation happen at the same time and people can feel like they're in their own space. It was more purely looked at as a square footage calculation from here's what you're adding to the building and the footprint and thus the cost. Does that, what we assumed in for that dividing wall, does that allow for some level of fenestration, not necessarily entirely a call wall of glass or not entirely another barricade of CMU, but something that allows us to visually inspect both areas?

Sure. Real quick. I am Dave Hayes and I'm the president of the Pence contractors and I'm a member of, I live in McMinnville community. My wife grew up here, so I'm very invested in this being a great project. That said about the wall, you know, there's, This pricing is as exact as it can be at this point. So there is flexibility. And as we work with the architects to expand decking around the pool or treat the wall a little bit differently, we're going to make those adjustments along the way. And it may be taking a little money from here and putting it there, but it's going to be choices along the way that we help people make. If that's an important thing, then we'll find a way to do it.

Does that answer your question? Yeah, that does. Thank you. Okay. And then lastly, and then I'll let somebody else jump in. But one thing we heard from and saw on the tours was construction methods. And it's something you dedicated some slides to. This section of the building is this. This section of the building is this. And... we heard and saw a conversation around the risk that you're taking in potentially using a certain type of material or certain type of construction method to hit a budget or to achieve a program. So maybe you guys could talk for a minute on what the level of risk or investment we're taking on in terms of the the lifespan of the building for a lower cost now or how risky our assumption is on trying to hit this cost given the construction assumptions we're making I'll just do a quick one I do think

The most risky space is obviously the natatorium. And there's all sorts of examples of other projects where corrosion of metal is actually an issue. So the CMU walls is like the best possible way to build the walls in a natatorium. The problem is if you sheetrock over metal, even with barriers, vapor barriers and so forth, you aren't sure what's happening behind that wall. So there's lots of examples of not even that old of facilities where they're showing degradation that shouldn't be there. As Erica mentioned, the wood on the roof structure is certainly visually appealing, but it's also a very good way to build a roof structure. When you start doing steel trusses and decking, there's lots of ins and outs, and you can use the and you do all this, but all it takes is a few spots where rust starts to happen. So we feel like the wood structure in the natatorium is super important. And then gaining the economy with pre-engineered metal building. And that works from our experience. It works well if you have enough of it. And sometimes pre-engineered buildings, we have a one-court gymnasium. Let's do a pre-engineered building. Well, there's just not enough of it to get the efficiencies. And that's one of the things we really like about this particular layout with gymnastics, the two-court gym, as well as... the cardio weight area, that kind of reddish color bar just makes a lot of sense. But there's a lot of decisions and great experience that Dave and his group brings to constructing these facilities.

We need to acknowledge pools. in themselves if they're not designed and constructed well, they'll self-destruct, really. They eat themselves from the inside out. So the main importance there is to have that be its own separate vessel. So by constructing that out of CMU and mass plywood, I think Ken could echo this as well. That's really the lowest risk system out there. And the pool is the area that that all resides. As far as the pre-engineered building, if you don't know what that is, by the way, it's basically a steel building that's to a certain degree, some of it's prefabricated and there's a little bit of a rector set. So it goes together really efficiently. So as we say all those things though, to answer your risk question, I don't see that we're taking risks. We've seen some in some other pools out there that people are taking some risks for some cost benefit today, but we think as a long-term solution for this community, I think we've appropriately addressed those risks at this point.

And I'll also say that for anyone who's not familiar what CMU is, it's a masonry unit, which is what your current pool is built out of. And so it has, from a wall perspective, it has stood the test of time for all of you here already.

Thank you. Councillor Chenoweth.

Thank you, Mayor.

I think you hit a couple of my questions already. Roof height on the gymnastics was one. I would be interested in discussion about the wall in between the two pools. So thank you for hitting that question. I think that I'd like to see some visual capability between the two. So thank you. I don't swim. It's not my thing. So I say that to say I don't have a lot of knowledge when it comes to pools. Does a competition pool in the non-stretch version allow for water polo?

Yes.

Okay. So just just want to make that clear. And then on the on the prices you gave us, you said the it was 1.35 million by my quick math to go from a standard to the from the original pool to the stretch pool. I didn't see a price for what it costs to add the extra meeting space. Was that part of the 1.35 million? So I'd like to know what that cost is.

It is actually on the slide where you showed it.

I do think that's one of the amenities that our residents do want to have in their community center. They enjoy it now and losing that I think is going to be a cause for consternation. So I'd like to know what that cost would look like. On the picture, I think it's the next, No, it's back. It's the one where it showed. Go back. It's the outside picture layout that I'm talking about.

Oh, the outside. Here?

No, it's the one that, the overhead one that showed.

Oh, the site plan.

Got it.

There we go.

Okay.

So the green on this side, is this a floodplain or is that just the vegetation?

Vegetation. There's a point where it becomes heavily vegetated.

Is there a floodplain issue on that side? And how far back from there is it?

the area that we're looking at, um, even with the future expansions, all basically flat and the land does drop down pretty significantly at the Southwest corner.

Okay. So not really close to where we're building.

No, we're good to go. And

I think I only have one more question, Mayor, with your indulgence. One of the things that was brought to our attention, and actually I have two, I'm sorry. One of the things that was brought to our attention in multiple of the buildings that we looked at, I think it was multiple, and if I'm wrong on that, it was only one, I'm sorry. But was that they wish they had not had a sauna and if they had had a sauna they wanted they preferred that sauna to be in a very public place because they had all kinds of behavioral issues involved with the sauna and and i'm not sure i'm saying i'm opposed against or anything i just want to bring that to the discussion for whatever is decided with the sauna so that our poor staff doesn't have to deal with that consequence. So we're thinking about the location of the sauna in relationship to the behavioral issues that could come from such a facility.

I'll just, if I could just share a quick comment, we, we did, that was part of our conversation and to think about locating it where it was positioned near the lifeguard area. So, and it's off of this kind of main corridor. So it also serves those using the gymnasium and other spaces. So it's not an amenity just for, pool users. So putting in that, uh, zone that's can be shared and it's across from the universal changing rooms. So there's just a real kind of public aspect to it. Oftentimes those amenities, there'll be one in the men's locker room, one in the windows. We're trying to make it a real shared resource and have, have good supervision.

Okay. I think it was the supervision. That's the issue. Um, And then my last question, this may be a dream, um, but in our existing community center, um, and there may be some that wholly oppose this and so be it, but in our existing, have you seen the existing community center? You familiar with it? Okay. We have an articulating, uh, Area of chairs that come out creating a bleacher It's that go back to the wall and then come back out that allows that room pretty quickly to be used in a lot of meeting space type Environments that we wouldn't otherwise be able to use it for and I hate to see that be lost if I just don't know if there's a way I've not seen it in any of the existing ones we went and visited. So maybe it's just not possible. Um, but I just like to see if there's a way to move that to the new facility, if there's a way to modify the, to make that work, whatever. But I just hate for that to be lost. That'd be my last comment.

Councilor Peralta.

Thank you, Mayor. Uh, can you go back to the slide with the rooftop view? No, just the roof materials. Okay, good enough. Which of the parts of that building are the pre-manufactured parts?

That's the one. So the ones in red are the pre-engineered metal building.

but not the gym, just the pool?

No, this is the gymnasium area. So the red is the gymnasium, this light blue is the pool.

So the pool's not pre-engineered. That's correct. And then the main area is also not pre-engineered. Okay, so this is, I think I know the answer to this, but would adding more natural lighting to the common areas significantly increase the development and maintenance costs?

Well, we want to be it all. Yes. Adding more glass does, you know, increase the cost. So we're trying to be very strategic where we're locating it. And, you know, at the entry, there's a little more glass there. So it announces itself. I think. you know having the the mass plywood there could be skylights there could be other ways to make that whole processional pretty interesting actually with very minimal cost so I just think we want to be really smart where we are showing glass there's two different kind of window systems one's called the storefront and you can go up between 11 to 12 feet in height it's significantly less money than if you do a curtain wall. So a curtain wall, you know, is quite a bit more money. So we are frankly limiting that right now to just like the lobby area. So there's, there's a lot of questions and, you know, frankly, we tend to do daylight studies and really try to understand how to have a the natural light, create the ambiance you want, have it be energy efficient. We also, these are all performance spaces. We don't want glare. You know, working with Josh on the pool is like, we don't want windows on the west. or the East side. So anyway, these are all, uh, questions. This is just a beginning of, so to establish a flavor. Thank you.

Yeah. So to clarify my point, I was, I was really meaning, you know, more skylighting in the common area. Oh, sure. Yeah. Not, not in the, yes. Or the, or the pool. Cause I agree. Yeah. Problem. Um, And then the other question I had, and this one's, you know, just to understand the terms you were using. So is the service court basically just an exterior loading space?

It's a little more than that. There'll be, uh, exterior equipment, you know, transformers, there might be a cooling tower. There could be a lot of stuff that's out there and you want to be able to make it secure and you don't necessarily want to have it in the public side, which also having a wall around that, uh, helps solve both where it just feels more integrated and, um, and, you know, allows the equipment, uh, to be outside that needs to be outside instead of any enclosed space. And we also are looking at the roof, uh, planning on rooftop units versus units that are in enclosed. For the service court, you mean? Pardon me? Roof for the service. Yes. Yeah. And so using the roof shapes and you'll see it in one of the aerial views where mechanical equipment's kind of tucked. There it is where the lower roof comes in and there'll be some equipment up there that no one sees.

Okay. So the main, the main question I had about that was that it is going to facilitate loading into the equipment room from directly outside.

So this is actually probably an ideal diagram. Service is sometimes one of the hardest things to solve because you don't want to near the front of the building. And we happen to have two streets of access and having to get direct access right into where full mechanical is. chlorine, other chemicals, so forth, those deliveries you don't, that happens frequently. So it's a beginning, but we think it's a really smart and efficient layout.

So thank you. And I guess I'll just put my statement in favor of the two additions, the additional recreational space and the bigger pool with the practice lanes.

Stretchable.

Stretchable. And then I would also agree with Councilor Chenoweth's comments about, I don't know if it's doable in the size of the gym, but it is nice to have some seating in that gym. Yeah. Using that's unfortunate, but if it drives up the cost, I understand.

Thanks. I have a question.

I have two things that I'm just, am I not seeing them? Is there a break room?

In the administrative area, we actually haven't drawn a lot of the detail that would go into that area. But yes, there would be a break room, a work room, probably at least two private offices, open office area. So we're comfortable we can get that program in there. We kept some of the plans a little diagrammatic at this point. That's where you're not seeing all the detail in the binary locker rooms, for instance. I will say it's really advantageous to have the main admin staff area in proximity to the pool staff. That was remarked within our steering committee. Oh, that's a good positive relationship to have, so.

And then one other thing, and I'm not 100% what we do now, but I know that when we were at some of the visits, there was a laundry, so washer and dryer area. Is that anticipated being in here as well? Or is that...

something that is to be determined, but yes, the there's some larger gray blocks that we've in our own mind, we just labeled a storage, but it was like building maintenance. So there's, there's storage specifically to serve activity spaces, but then there's also in this plan inherently a good amount of storage that certainly could accommodate a washer and dryer.

Councilor Cunningham.

Yeah. Thank you to all my fellow counselors for asking most of the questions that I had. In Redmond, the kind of the, I think it was the lifeguard area actually had ability to be kind of on both sides. of uh the competition and the recreation it was pretty neat that they kind of had a ability to kind of look over everything and then of course they had their lifeguards that were at the pool and i think that with the new requirements from the state um that i feel like that would be hopeful in that uh scenario but obviously that's moving some stuff around to be able to make that even possible. So, but I would also agree with my fellow counselors that I think the stretch pool area and then the community room are important aspects But I really also understand what the mayor was saying about having the team area on the deck. So, and I know you're trying to squeeze blood out of a stump here. So, but so in any case, I think that's all the questions that I have for comments, I guess.

Councilor Tucholsky, are you ready to ask any questions?

Yeah. Thank you, mayor. I've been writing the whole time. I have to keep up with Zach. So I did want to say thank you. You've brought, I would say definitely the spirit of what we're asking for. So I appreciate what you put in front of us. I just wanna go on record and say I don't like the eight lane pool. If we're looking to go for some kind of cost recovery and host tier one events and have a world class pool for our high school students and everything, I'd ask for a 10 lane. I think it's appropriate. You can bring in a lot more events, a lot more competitions, a lot more regionals. Even half of the western US could use this for a competition. I know we don't have a ton of money, but I'm throwing my Christmas list out there. I'm also a bit concerned about the moving bulkhead. Anything, in my experience as an engineer, anything that you put in water that's moving is bound for some kind of challenge. And it makes me concerned that a moving bulkhead would cause future challenges. And I'm not sure if we can get a 10 lane without a bulkhead or if we can have to have a bulkhead to get a 10 lane. I'm not sure, but I'd ask ideally, could we get a 10 lane 25 with a no bulkhead in that area? So that would be another one of my asks. One thing I've noticed when you're watching these kids events, they're, Their gear is thrown about all over the deck, and it's a tripping hazard. Well, realistically, they'll probably lose half their gear during the season. It would be really nice if there was some kind of a storage thought. in the area in which that product is being used so they could continue to access their water bottle on their phone and whatever else they may need their flip flops, but also it's not all laying all over the pool deck because it's gross and they lose things and it seems like a reasonable investment or the parents are going to be buying a bunch of stuff. One question I had was if we are having a competition and we have a, let's just say we have a 10 lane, is there a warmup pool or are we using the recreation pool next to it during that event? Because people do need a warmup. It's nice to have a warmup pool.

Well, that's certainly there are a few lanes in the recreation pool. Different water temperature, though. Yeah. Ideal. Obviously, in the stretch pool, you do have warm up lanes. So that's one of the. nice qualities of having that. We'll say there's been, you know, a lot of upgrades and bulkheads and the ones that we've been specifying, you know, tend to move very easily. But, you know, there's certainly cases of especially older models that have been challenging. So, you know, your point's a good one.

If I may have a few extra questions, Zach and I both looked up the safe statistic. We have 380 seats in our current pool and that can get shoulder to shoulder sometimes. And if we're adding what is, you know, supposed to be more of a world-class pool, an extra 20 seats doesn't seem sufficient. I would like to see a minimum of 500 seats if we have a 10 lane pool. So if you're looking for a, an input to your design, that's what I'm asking for, is 500 seats minimum. Two other things that I have on here. In the past, we've talked about the food desert and there's no facilities out there. There's nowhere to eat. I don't see any kind of accommodation for food trucks. I don't see any kind of electrical water sewer. I didn't know if we could put something along either the community center side, which is, do you have that one open now? Yeah, I think you do. by the community room, or if you want to actually move the service court North, and then you could contain all the noise and all the facilities in that single area and put food trucks up there on the Northwest side.

We've actually a number of facilities that's come up as a suggestion to have food carts and food trucks and oftentimes we've been located closer to the entry where people are coming in and out so even that area and it's really hard to read but you know Entry Plaza that you know area could easily expand and be a great location because you also want to give those food trucks as much exposure as they can get to so they can drive business so that's a great suggestion for sure yeah so that's kind of the conclusion of my comments but i do want to say that i do support having a 10 lane and i would also like to see the community room included as well

I'm in support of that. Thank you for bringing that today. Thank you, Mayor.

You're welcome. Councilor Geary?

This one's maybe more for City Manager Garvin, but I love the direction that this is going. It's bigger and better and cooler. I will say the previous bond had $4.5 million in the total package of $98.5 million that we were trying to come down for property acquisition. and we haven't seen property acquisition yet in this number. So I was wondering if you had a comment on our plan to own the land we want to try and build this on, or if we should be adding that into this bond package or where's that conversation?

Good question, Councilor Geary. What was presented tonight was just the building itself and the programming. As far as acquisition costs, we're still under a purchase sale agreement with Water and Light through the middle of December this year. And there's been conversations with John and Water and Light around acquiring that property or potentially extending that purchase and sale agreement until a bond, we can get this to a bond vote. So there's different avenues we can acquire that property if you guys are comfortable putting that into the bond. That's obviously a very clean and expedited way to do it. If you want to use park SECs to do that, if you want to use potentially a loan situation with water and light. And make annual payments to pay property off out of the general fund. That's another way to do it So a bunch of different avenues it just depends on what your guys comfort level is on bond budget I Heard a lot of great ideas tonight around programming, but all those come with a cost so I think to recognize that the base plan here was a hair over 80 million and all those ideas that you guys love are gonna push it well past that. So understanding where your guys' comfort level is on 82, 85, 90, 87, and then where you guys would like to go from November or May would be important to land on in the next 14 minutes.

Councilor Chenoweth.

Well, it sounds to me like we need three sets of numbers. Well, two sets that we don't have. One we already have. It sounds like we need a price for the community room and a price to go to 10 lanes with 500 seats. That's what I'm hearing from the dais.

Is there an option of a stretch pool that's larger than what we have that would accommodate? I'm just trying to come up with other options as well, not just the 10 lane as well. Just so we see cost. I don't know if a stretch pool with the five.

Ken, do you have some thoughts on that one? In terms of a additional lanes for, uh, beyond the, you know, a 10 lane, 25 yard, is there another combination that gives you warmup lanes is, you know, is, we're showing a eight lane, 25 yard stretch. Is there something else we should be looking at? Does the 10 lane still need to have warmup lanes? Yeah.

And I mean, we had early on, we had an option that we were toying with that had that, as I recall, Jim, we had 10 lanes plus the bulkhead. And then that gave you some, uh, ability to put some lanes on that other side of it the same way it is now i think i have go back to but yeah you know if we need 10 lanes in the in the competitive direction the only way we can do it is the way you see it now and then you'd have either the bulkhead in there and then add lanes beyond that um so it's and we'd have to work with some options, but honestly, if you want 10 lanes, there's not too many other options.

It's got to go. That Williams was 13, 13 lanes, right? With eight up to 25 and five at the 20.

I mean, when I think too about the 10 lanes and keeping the bulkhead and the other swim lanes is saying you have a full 25 yard length right now, the warmup lanes,

So going to 10 lanes would give you more space on the bulkhead to create three 25-yard lanes as opposed to three 20-yard lanes.

Yeah, you're going to get 25 going across in 10 lanes.

Okay, so we are running out of time. So, oh, the counselor took calls.

Go ahead.

I'll keep it short. Inside your presentation, it talks about site work. I'm not sure if you can go to that or not, but I don't see site work detailed at all as far as cost outside of $7.29 million. It would be nice to have some kind of breakdown of what you believe that. Obviously, you have something. $7.29 isn't random, so it would be nice to understand that.

Yeah. So the site work is going to include the parking and the curbs and landscaping and everything you can imagine around the parking lot, uh, between the building and the streets is going to get landscaped. The backside of the building that you see future is pretty tight to the building on any type of site work we have there. Um, And then you saw the service drive coming off of Marsh Lane to the service court as well.

I would ask for our next meeting when you do bring this back, if you could bring some kind of a detailed vision of what that site work actually is. Are you looking for like landscaping or what are you looking for exactly? I'm looking for the cost. Okay. Cost can fluctuate significantly on this portion. And it's not an exciting portion to talk about because it's just cost of doing business here. But yeah, It's also the spot where it can creep significantly. And I'd just like to understand the, what do you propose? The parts and pieces of it. Yeah, exactly. I don't care about the landscaping personally. I'm more concerned about what's it going to take to make this function.

Gotcha.

And then I have one other question. Thank you, Mayor. The operational budget summary, you have a base plan. If you could go to that one. So we're subsidizing this thing at 1.6 million per year in the red box there. What's that? Yeah. Okay. So you're looking at cost recovery of 59%. I guess that number concerns me because I don't have a great enough understanding of cost recovery at this kind of a facility. What happens if it fluctuates 10% less or 5% less? Are we still putting the burden on the taxpayers at that point for up to like 2 million? Or could you explain that for a moment?

Well, in a short answer, yes. I mean, we're going to be able to generate 59% of the cost of operation through earned income or revenue generated by the facility. Beyond that, there has to be some other source. And realistically, and for most facilities, it's tax dollars that make up the difference. That's why we identify that 1.631 in this as part of that. Obviously, that number fluctuates with... The size of the building the amenities that are in there. We talked about adding some of the spaces We've talked about we'll change that number up or down And that's why we also showed you the comparative to where you are now and the money that you're expending For basically this the same thing. So look in your 26 a minute budget. You're spending right now taxpayer dollars 1.7, almost 1.8 million. So it's projected to be a little bit less than that with the new facility for the reasons I mentioned before, just consolidation, new building, different amenities that will draw increased revenues.

Okay, thank you. And that just kind of goes back to the point that I like to make certain we can generate enough revenue and therefore I would ask for the 10 lanes to make it a competition area. And to answer your questions, city manager, my budget area, I don't know how much. It'd be nice to have some kind of an itemized list of what do you get for how much. If you could bring that back. Is it 85? Is it 90? I don't know. Maybe 90,000, 85,000. It's hard to tell. A million. I don't deal in millions at home. Just... Sorry, yeah, and this seems like a stretch to get it on the November bond right now. We don't have a great plan detailed in front of us. We do have a plan. Sorry, it's not a slight on you. It's a great plan, but I don't know if it's detailed enough to make the November bond. I'm concerned.

Thank you. Okay. I'm going to try to wrap it up and if something has to come in, but let me speak first. So I, the things that I think that we need to still see, which again, I'm going to say you guys have done a great job. This is, we're definitely in the right direction. Um, and I think we just need a little bit more, but I, we need more decking most for teams and also make sure there's decking for parents to watch in the cool, the the recreation area visual between the pool, two pools. What are the options there from what it sounds like? That's a solid wall with doors right now. I mean, I wasn't quite sure what you priced it at, but just to make sure, let us know what the options are there. The price for the community room again, a placement for a break room where laundry, those types of things that we can see storage on the deck space, possibly for the teams. A price for a 10-lane pool, 500 seats, maybe some infrastructure for possible food trucks in the future, and some breakdown of the site work. And I think we need to see a little bit more breakdown of the operating cost, the cost recovery for that. With that all said, I'm also in agreement that I think we are on our way, but it's just too close to put it on the November ballot. I think we need to say that we're going to do it in May and confirm that we're going to do it in May, but we need to make choices as to how much we're going to put there and where it's going to be. I want to commit that we're going to do it, but I definitely think we need more information and I think we need some more community input to this. This is kind of when we saw it and this is when the community seen it. We would need feedback from them, at least as a council. I feel like I need feedback to know, and then maybe we can only afford so much and we need to talk to communities, see if there's any input from them in the way of funds. So that's where I'm at. Anybody have anything else you want to add before I close?

Uh, no, I mean, yeah, if, um, whatever gets us the most consensus that we're all out there vocally supporting the project, I think makes the better cost that, you know, part of the constraint was a, the time Delta between the previous round. And when we go again, just because it's rolling the ball up the Hill again, just in terms of, um, voter memory span. Uh, and, uh, and then the second would be the closer we get to the, um, the school bond is, is a little bit more pressure on us and them and, and everybody. So, um, but if it, if it gets a better product that we're all out there willing to support and pound the pavement for them, I'm in favor. Okay.

And I have said just, um, voices over here. Are you okay with going to may or does anybody have a strong need and feel comfortable going with November? Um, Thanks. Okay. All right. Counselor Chenoweth.

Thank you, Mary. Just feasibility of whether or not we can keep the articulating stairs. You didn't have that on your list. So, and thank you. This is a, we actually have something we're looking at. That's great. Thank you.

Okay.

One tag for the, if it is sort of hearing consensus, maybe more towards just working for May is I'd like to see sort of how we had a calendar in here, what that calendar from here to May looks like with, especially with the things that you had mentioned, the community input, the back and forth, how that plays out on a roadmap to May. Cause that's going to come very soon too. So I'd like to see some time now we, can capitalize on the momentum that we have make those decisions and then put a roadmap in and get all the work done and then just sit and wait um or or use all that time so i'd like to see that roadmap perfect sounds good city manager garvin did we answer enough for you yeah i have direction perfect all right thank you so much for all your time and information it was great to see

Thank you very much. Thank you.

All right, it's 6.57, and I'm going to close the work session. And we'll take just a few minutes and come back for our counsel.

Recording stopped.

Oh, and who's that?

Leah.

Oh, it's Leah. Yeah, Leah. Okay.

Thank you.

Thank you.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Progress. Okay.

Okay, it's 7.05 and I'm going to bring the council meeting to order. Claudia?

Councillor Cunningham?

Here.

Councillor Tucholsky?

Present.

Councillor Chenoweth?

Here.

Councillor Geary?

Here.

Councillor Benner is absent this evening. Council President Peralta?

Here.

And Mayor Morris? Here.

Great. If you're able to stand, please stand and join me in the pledge. Now it's time for public comment. 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 land use decision that is or will be in front of the city council or a matter scheduled for a public hearing at some future date. Comments will be limited to four minutes per person for a total of 32 minutes. If you were 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 Claudia, do we have anybody signed up? No one has signed up. Nobody signed up. Is there anybody in the civic hall that wanted to speak that didn't get signed up? Okay. We have a goal that we have to be out here by nine because I have a bet up here. So thank you very much for not speaking. Okay. So I know we're going to move on to presentations stewardship report on city insurance coverage from Ryan Hartzell of Hagan Hamilton insurance. Hi Ryan. just to make sure the green light is on and it's pretty close.

Yes. Thank you. Thank you.

Ryan.

Do you want me to bring up two documents?

Yeah. If you wouldn't mind, that would be great. Uh, well, city council mayor, thank you for having me in, uh, to talk about the insurance stewardship report. And, uh, this was a fun one to write this year. I have to say, uh, I don't get an opportunity to do this very often. Um, I live on a hazelnut farm and I'm in the business and my rates, they don't go down ever. So I appreciate getting a chance to reflect on what I think is hopefully a cherry insurance report. So the net effect is that the insurance is down about 6%. And I'll just take a moment to kind of talk about that. And there's two major portfolios that, you know, we want to talk about tonight. So I'm Ryan Hartzell. I'm the agent of record for both City County Insurance Services and Safe Corporation in addition to some other auxiliary volunteer programs, airport liability, cyber. That's all part of the portfolio. So a couple of things driving the increase when insurance companies make money, they either decide, Oh, we don't have to raise rates this year, or we can kind of hold steady. So Katie and I looked at a budget, uh, kind of a couple of different, uh, our first stab was, uh, you know, December of 2025 and then most recently April. We were getting some pretty positive news on the front that perhaps there would be you know Insurance premiums would hold steady and not increase or some coverage lines may be up a little bit last year We had to deal with a pretty big appraisal so that we got through that a little bit So it was nice to see a couple of things that are driving the base policy of CIS and this is your property liability general liability and equipment, auto, excess, you know, public officials liability. So beside what's happening with the 14 insurance carriers that make CIS, the other thing that's just really nice to see, this is a very dynamic account for CIS. So city of McMinnville has got a lot going on. We take some time to really compare how do the claims for the city of McMinnville look in comparison to other large cities, at least 25,000 or larger across. The CIS pool and so we met I believe back in April the city manager finance and city attorney we looked at those results and With that we are performing way above peer average in some of those areas where we have claims and So I think the most important part is, you know, we're talking about $5,000 average claim over a five-year period of the 10% loss ratio. Now, a little bit of luck is always involved in these, but boy, those are fantastic results. So I just want to take a moment to reflect the department heads and those making the hirings. the tenure workers of the staff, that risk avoidance piece by Navin claims as large. And these are just the claims that get reported to the CIS that I know about, but those are really terrific results. So I think that performance does matter when we talk about insurance. And so really pleased to report that I think that we see some really good trends and we've seen that for the last couple of years. One of the factors for the city is the infrastructure and the age of the buildings. I know this is something that we all look at, some delayed maintenance. Old buildings always have claims. Insurance companies do not like old buildings. There are all sorts of limitations on year built and when they're updated. So the fact that we don't have any claims concerns on older buildings right now, um, you know, we'll gladly take that positive trend. So I think more than anything, um, our total insured value is up a little bit just cause we always want to factor in inflationary increase on the total limit of the portfolio of insured values. And that's $278 million. The city carries a $50,000 aggregate deductible. So what that means is that we wanna make sure that if we have someone that's a claimant, and most of the time these are people that are community members and they're residents of the city, we wanna make sure that we send out a professional adjuster to investigate the claim, check it out, make sure that we take care of doing a proper claim investigation. So this is an aggregate deductible. So as we have small claims, we have all sorts of interesting things that come in. that each claim builds on one another until we reach that aggregate deductible. So, so far this year, we are way ahead by having this aggregate deductible and only $10,246 on that liability deductible has been paid out. Now we have to get through several more years because things that occur this year, Might not be reported for many years after and we have to go back to this policy period But boy, I'm really pleased to see where that aggregate deductible is and sitting there today We got one more month to go to make it So we got 22 days and I just checked before I came and I think we're in pretty good shape. So Okay workers compensation Pretty holding steady. Just very little increase there. 17 claims reported. The important part about this is that there's no large claims. So we don't have anything that's larger than $5,500, which is very positive. The one thing that I'll say that I spent a lot of time looking at is do I see names that are on both the CIS list where we have somebody that has a bad driving record and they're having lots of accidents causing property damage. And then somebody else that has a potential workplace issue that we would want to, you know, have reach out and have somebody visit. And I, and I will say there's no frequent flyers. So nobody's appearing on those lists, which is a good thing. So I've had to make none of those phone calls, which is great. So I think more than anything, I do wanna take a moment, just if we have new council members, just remember that part of serving on the city council is your public liability built into this program. So should you have a written demand that somebody is gonna take action against you as your role, as your decision-making here on the council, that would be important to get turned in so that we can do the proper investigation and make sure that as you incur legal expenses, that we would measure those against the policy. And I think with that just the insurance company has lots of charts And we can get overwhelmed by everything so I want to keep this very simplified and Answer any questions that you may have one of the fun things about the charts and there wasn't a lot to report But the most frequent claim over the past five years that we have surprisingly enough and again. This is not a problem It's just the number account we have is sewer. So that's probably the most frequent claim that we have that come in. And so we do the proper investigation, check it out. It's not always covered, but surprisingly enough, that's the one that crosses my desk the most often. So with that said, happy to answer any questions on any of the portfolios.

Does any counselor have any comments or questions for Mr. Hartzell? No, you did good. Thank you very much. I appreciate that.

Thank you.

Good report and good job, directors, keeping the rates down for us all. Oh, Councillor Chenoweth has changed his mind, Ryan.

Right. We get one. Good.

All right.

Is this not the time that we're also discussing our cybersecurity policy? Sure. And how did those rates look?

That's going to be steady. We had one incident this year where it wasn't a claim, but we had some investigative expense. We were on that very early. Scott reached out and just said, hey, we have something going on here. I don't know what it is. I said, well, with cyber, all it is is if it feels unusual or weird to you, that's something we want to report. So we got that turned in. A little bit of investigative expense. I think it was under $10,000. But cyber, because of the securities that have been put in place, CIS carries the first layer. We have 2 million on top of that. And right now I don't see any increase. The final premium is not in yet. There's lots of carriers that we are looking at to build that second tower. So I don't have the exact number yet as of today to report what that'll be, but it's not probably going to be more expensive than it was last year. Well, that's good. I know a couple of years ago there was real concerns about where this was heading. So thank you. Sure. Yeah. We've seen stability in that, that area.

Anything else? Awesome. Thank you, Ryan.

Thank you.

All right. We have a second presentation tonight. And the next one is from general manager, John Dietz from McBumbo water and light. Hi John. Hello.

Good evening. Thank you, Claudia. So what I'd like to say, there's a lot going on right now at water and light. Um, We just went into escrow for property purchase. We have five other property purchases we're looking at right now, or transactions, I should say. So what I would say is, next slide, Claudia. The commission approved our budget last week, so we're ready to go for July 1. Go to the next slide. You can see total revenues, total expenses for FY26-27. Primarily the significant cost in the electric side is power supply. Power supply makes up two-thirds of our costs, and those costs are primarily BPA. There are some significant challenges coming ahead, I would say, with BPA, especially With the current litigation that's going on, we could see additional costs somewhere between six, probably looking at six to 7% increase in those costs as well. That probably won't happen until October one, but we don't know what that's going to be because it paused that as they were getting, they, Their administrator retired and they've just appointed a new administrator and I think he's being sworn in on Monday. And so that will probably start off the next rate conversation with BPA. Next slide. And then you can see the proposed budget, total revenues, $55 million total expenses. significantly more expenses this year because we are doing our building expansion. So that project is about 30 million dollars. The costs for that project are being covered through reserves. We have significant reserves and we've been planning for this project for probably the last five to six years. So the groundbreaking for that is tomorrow actually. Contractor is kicking off construction. We're over in a temporary space right now. We've been over there since May 4th Next slide Claudia water division water division fairly very stable can see total revenues estimated expenses again a lot of capital going on significant amount of capital in this year's budget we're also looking at the future we've got potential for doing another phase three of the transmission main project which is from the service reservoirs to Baker Creek and basically boring under the creek there. So that is actually scheduled for hopefully starting construction next summer. Engineering's complete. We're acquiring easements right now and we're looking at construction. Probably spring, summer of 27. Next slide, Claudia. And then you can see again, total revenues versus expenses. Again, the same thing. We're seeing those expenses increase due to the building expansion. So the way it works for us, roughly 60% of the cost of the building are going to the electric system and 40% go to the water system. That is kind of the breaking point between the two funds. Next slide, Claudia. Again, this is just what our financials are looking at. Capital costs, you can see we're doing some significant work in the electric system as well. We've purchased three Power transformers, one for new substation out on Three Mile Lane, and then two for Winishaw substation, which are to replace aging units that are at Supply Cascade Steel. Those units are scheduled to be delivered in the fall of 27. And so once those are delivered, we'll start installing those transformers. Waterside, same thing. You're seeing significant 16-inch transmission main project you see there. The Zone 2 pump station, which is under construction right now. And then the regional intake pump station. We're in negotiation, or we are discussing a second treatment plant site with a property owner. with our goal of having that site acquired, and then we will start permitting for an intake. Our goal is to spread that cost over a significant number of years. Our water rights, our senior water rights, have a 30-year perfection on them, so we have 30 years to perfect those rights. So we're going to take that time and spread those costs over that time period. Next slide, Claudia. For our budget, 26-27, you see cost of service. We'll see that next month at the commission meeting. Columbia River system operations I mentioned, that's a potential 6% to 7% rate increase, and that's power supply costs. That's not what the final rate will be potentially for our electric rates. And then we do have a minimum reserve cash policy for both the water and electric systems that we utilize and... Our cash positions are both very good in both systems. We're above our minimums even after we complete construction of the facility. Next slide, Claudia. And this is the architect's rendering of our facility. Commission approved the GMP guaranteed maximum price on May 26th. PNC is mobilizing to the site and we have groundbreaking tomorrow. and we are looking at getting started there, mobilizing the subcontractors right now. Should be, I'm hoping to have walls start going up sometime in September or October. That project will be a little different too because we are also using a product called MPP mass plywood panels. So we're anticipating construction of the warehouse expansion probably only take two to three weeks because they're going to bring the panels in on-site and erected right there. The next slide. Our project, we're looking at being complete in probably early August. We're hoping for some time in July, but we're anticipating August of next year. Complete and ready to move back in. 14 months, maybe 13 months, more that time. And the next slide. And I think that's it, questions. Thank you.

Any counselors have any questions for John? Counselor Peralta.

Hi John, thanks for the presentation. You'd mentioned a lawsuit, the BPA lawsuit. Is that the one related to spill? Yes, that's the one related to spill.

So what's gonna happen is, With the additional spill, there's less water to generate power, which then drives up EPA's cost because they need to go to the market to get those additional resources. I mean, is it accurate for Mack Water and Light that's millions of dollars over a couple of years? We estimate $2.9 million for FY26, 27, 27, 28. Okay, thank you. Yeah, it's almost $3 million per year.

We're all grumbling. Yeah.

Can we just collectively backcharge them?

Yeah. So actually I, just so you know, the, um, we are in, we do, belong to a number of trade organizations who have filed appeals to the litigation. So a nice circuit actually just ruled on one portion. The plaintiffs wanted to keep the previous panels on the nice circuit and the nice circuit denied that motion. So little win, but we're hoping for a big one.

Thank you for trying to work on that. I appreciate it. Anybody have any other questions? Great, thank you very much for being here. Have a good night. Okay, so now we're gonna go into our public hearings. For those who wish to testify when it is your turn to testify, please state your first and last name and city you reside. For the record, each person testifying will be allotted three minutes for their testimony. The first public hearing to consider is resolution number 2026-25, a resolution adopting a building fee schedule. On this one, our first public hearing is, oh, I'm going to repeat myself. Adopting the building fee. This public hearing will be open and continued at a later date. That date will be July 14th, 2026 at 7 PM. At which time we will then take public testimony. So we're not going to be taking any tonight. We're just opening the public hearing. All right. So now we're going to move on to public, another public hearing to consider resolution over 2026 dash 32, a resolution adopting rates and fees for the McMinnville municipal airport. That is pages 18 through 22 in your packet counselors. Our second public hearing is to consider resolution over 2026 32. And does any counselor need to declare a potential or actual conflict of interest or accuse themselves for regarding this public hearing. Okay. I'd like to call on John Pascal airport manager to give a presentation on the topic.

I forgot that I had a name plate and there it is. Good evening, mayor and council. I'm John Pascal, the airport manager. I don't have a presentation per se, but I thought I would just summarize and build upon what's already in the staff report. The proposed rates and fees for the McMinnville airport, from what I can tell, are the first formal rates and fee schedule that's ever been put together and adopted by the city council for the airport. And it's intended to establish the airport's free fee structure, but also to help improve cost recovery, align charges with comparable regional airports, and establish new revenue sources tied to airport activity and infrastructure use. This proposal primarily focuses on increasing operational cost recovery through fuel sales, transient aircraft activity, and commercial use. Introducing fees for services and activities that currently do not have established or at least documented established charges, including transient landing fees and aircraft parking fees. maintaining affordability for base tenants by largely, excuse me, holding existing hanger rents and ground lease rates steady. The proposed rates and fees are also well aligned with the comparable airports used for the rate analysis for the land leases. considering the business activity, transient operations, and lease structures at those airports that are similar to McMinnville's, and introduces some new fees for standard business practices already in place at common pier airports, such as aircraft overnight parking fees, landing fees, and the such. So overall, this proposal reflects an effort to increase airport revenue opportunities while minimizing impacts on our locally based operations. tenants, businesses, and airport users. Trying to find a balance that really works for everybody. I would also add that it's important to remember at general aviation airports, we don't have the same opportunity for revenue you have at commercial service airports. So parking garages that generate millions of dollars and terminals with concessions and things like that. So it's important that we try and maximize as much revenue out of the limited resources that we have while we continue to develop our property, which is really the longterm sustainable revenue source. So that's really what we're trying to get to here today. Uh, We'll track this, of course, over the next fiscal year and see how it plays out and what it does to the budget. And then we agreed with the airport commission to revisit these every spring during budget season and line our airport rates and fees up every year with the budget. So we'll be able to track how we're doing and if our rates and fees are where we think they should be or if they need to be adjusted up or down. So we did have a robust discussion at the airport commission back in May and announced before you tonight at council. That's all I had. Any questions?

Any counselors have any? Counselor Cunningham?

Yeah, thank you very much. I see where the transient parking fees are, and the note says fees are per night. So would that be only for people that stay overnight, or they fly in and they park?

They have it basically until the next day is that it's a great question It's been carved up different ways at different airports in my experience here We'll probably we'll probably just structure that to be something like when when the fixed base operator closes to when they open the next morning We'll call that an overnight stay Now, it's tricky because theoretically an aircraft could show up at midnight and it could depart at 4 a.m. We wouldn't know. And it parked for four hours. But do we cut that as an overnight stay? Do we even know? Is it an eight-hour period? Is it a 10-hour period? So we haven't really defined what overnight means. But we're going to start with just the sort of basic thought of what overnight parking is. You rented a parking space for the evening and you departed the next day. And we'll start there and kind of see how that plays out.

but they will go get charged for the parking. Correct. Whether they stay overnight or not.

They'll get chart. No. So for instance, if an aircraft flies in and it goes across the street to the museum for two hours and then it leaves, that's not going to be an overnight parking fee. Okay.

So this, this only kicks in only kicks in overnight.

Okay. Thank you. And I've seen other airports where they do it, where, you know, 8 a.m. to 8 p.m. It's not overnight. It's just a 12 hour period. I've seen other airports do it for an eight hour period. So you're not, penalizing somebody for having stayed overnight. But where do you draw that line? How do you carve it up? So we're going to start here. What we define as overnight. I don't know that we have really a lot of overnight parking at the airport, but it'll be interesting to see as we start tracking how many overnight customers we really have. I know there are, for instance, some business jets that are here for two or three days taking up a significant amount of real estate on the ramp. And we're not charging for that right now. And that's really kind of what we're targeting for overnight parking.

Thank you. Any other questions? Yes. No other questions. Thank you, John. Thank you. So now we'll start the public hearing testimony. We will start with people who have signed up in advance to testify. Please remember to include your name, city you live in for the record. Claudia, do we have anybody signed up to testify? No one has signed up. Okay. Is there anybody in the civic hall that wants to speak? Nope. All right. Last chance for any comments. All right. I will now close the public hearing. Thank you. And we're going to move on to the consent agenda.

Does any, before you go on the consent agenda, I do want to state for the record that there are two Scribner errors on the March 10th, 2026 city council meeting. I've made those edits on your chair. I have printed them out for you. but basically on page one 12 there's a, uh, the voting on one of the ordinances is incorrect and I will fix that. And then on page one 13 of the packet, I'm missing an F on Hoff's homestead.

Okay. Thank you. Does any counselor want to remove anything from the consent agenda and have it heard separately?

The visit McMinnville TLT.

Okay. So council Gary is asking to have a removed, which is the visit McMinnville annual plan. Is there anything else that needs to be removed separately? Okay. Do I have a motion to accept the consent agenda as presented minus a.

So moved. Second.

I have a motion from council Peralta and a second from council Gary. Any discussion? Oh yeah.

Councillor Cunningham.

Aye.

Councillor Tucholsky. Aye. Councillor Chenoweth.

Aye.

Councillor Geary.

Aye.

Council President Peralta.

Yes.

And the consent agenda has passed unanimously minus, uh, item a and with the corrections of the scrivener.

So thank you for that detail. Appreciate that. All right. So now we're going to talk about a, which is a motion to approve the visit McMinnville annual plan and budget presented to the city council on June 9th. You can find it pages 23 through 54 of the year packet and counselor Gary.

uh yeah thank you um no objections to the content or the the proposed schedule it was merely in light of um when we had that previous discussion was hoping that as more funds were phased into the city's pot of money that it was more that it was brought in with more specificity on what that would be used for not necessarily just to increase into the general fund and um uh had tossed out something more specific like parks maintenance or parks development, but perhaps we could label the additional Delta over the 30% over the couple of years that we're looking at bringing it up to a 50 50 split all of the increase in that money being used for tourism related activities for our own use. So perhaps on a yearly budgeted basis, we could do look at increases in parks maintenance or specific parks maintenance projects, or those would be parks development projects where instead of STCs where we're building new capacity, it could be replacement of items or it could be used for restrooms, be it in a park or outside a park or a lot of different things. It would be tourism related activities more specifically, but I was hoping that the this enacting document would have more specifics so that we could be more targeted with those oncoming funds to still be good partners in that and recognize where those funds are coming from and how they could be used.

Okay, so I hear this as a motion to approve the consent agenda of Visit McMinnville's budget asking that the increase to the city be labeled into a bucket of working towards items that are based to tourism that would be presented to the council on an annual budget to determine how to spend leaving it somewhat general like that.

Generally specific. Yeah.

Okay. Do you have a problem with that? Miss attorney? We're discussing over there. Counselor Chenoweth.

Well, my, my question would be along the lines of, is there a problem with that? And the problem that I see with that is potentially, um, are we, are we telling future council what they can or cannot do?

You don't have the ability to bind a future council with regard to governmental matters like this.

So the motion would is just to accept the budget.

You could certainly bind this council and the current government. You could add those complications to how the budget comes next year, for example, to what is done as this makes that change. But if that is changed again in the future, nothing compels it. And it is a complicating factor.

To get to your point, counselor Gary, and what I heard the intent of this was, was to not just have this fall into the general fund, but to identify what that Delta is, what, what additional revenue it's created from the 70, 30 historic split since TLT went into effect and be able to communicate what that's funding, whether that's parking development, bathrooms, facility maintenance, you know, there's, all sorts of needs around the city, street maintenance, tourists have to drive on streets. So there's lots of options, but I hear you specifically interested in park related activity and park development. The reason I didn't include that in this memo and motion was I heard that clearly from counselor Geary and not clearly from the body.

I have a concern as being very specific with it. And it sounds like, that it's hard to make any specificity to it except for right immediately. So maybe just having the understanding to our city manager that we'd like to look at that each year for a little bit, at least for us.

Oh yeah. Understood. So yeah. Oh yeah. So, so barring, unless I wanted to jump in barring, I would, I would make the motion to approve that agenda item, but if you have anything to, yeah, I, I, I'm fine with the motion to just approve the agenda item and with the sort of

One comment I would make is that I would love to see this. It's not, it is, but I wasn't talking into it as usual. I was just saying, I would love to see this go into a Portland Lou downtown once we're able to.

Okay. So I have a motion to accept.

I agree. Yes, that was my motion.

Okay. I have a motion from Gary, a second from counselor Cunningham. Any further discussion?

Yeah, we haven't changed anything. We just had a discussion, right?

Yep.

Okay. Thank you.

Original motion. Any further questions? Discussion?

Claudia. Counselor Cunningham.

Aye.

Counselor Tucholsky.

Aye.

Counselor Chenoweth.

Aye.

Counselor Geary.

Aye.

Counselor president Peralta.

Yes.

The motion to approve the visit McMinnville annual plan and budget presented by city council on June 9th, 2026 is approved unanimously.

Great. Thank you. Next, we're going to move on to consider resolution number 2026 dash 32, a resolution adopting rates and fees for the McMinnville municipal airport that we just heard from John Pascal. Do we have any further questions from for John Pascal? Okay, do I have a motion to accept resolution number 2026? Yeah, so motion. Okay, for a second? Second. So I have a motion from Councilor Tokolsky and a second from Councilor Cunningham. Any further discussion?

I'd like to say that our airport manager, Pascal, has done a great job of putting together the fee schedule. It was presented to the body and the airport commission, and there was one item that had been modified, but otherwise it was very well accepted. So I think it's a great idea, and I want to say thank you.

I would agree, and I think this makes our airport ready to take off.

Claudia, she's too busy laughing going up. Councillor Cunningham.

Aye.

Councillor Tucholsky.

Aye.

Councillor Chenoweth.

Aye.

Councillor Geary. Aye. Council President Peralta.

Yes.

Resolution number 2026-32 pass unanimously by a vote of five to zero. Great. Thank you, John.

All right, we're gonna go to consider resolution number 2026-33, a resolution declaring the city's election to receive certain state shared revenues, pages 170 and 172 of the packet. I'd like to call on finance director Katie Henry.

So this first one, we have several different resolutions this evening. This first one will be quite quick. We've had several conversations about this. There are several required meetings, public hearings, things like that. This specific resolution has to do with the concept of using the state shared revenues, the, the marijuana revenue, the liquor revenue towards the, um, deferred maintenance projects that we brought forward in the budget. So that is what this resolution is doing. We're saying that, yes, we are a city. Yes, we have public services and yes, we, it's okay for us to get this money and we promise we will do what we're supposed to do with it. So

Great. Do I have a motion to consider resolution number 2026-33? So moved.

Second.

I have a motion from Councillor Chenoweth, a second from Councillor Tucholsky. Any further discussion?

All right. Claudia? Councillor Cunningham?

Aye.

Councillor Tucholsky? Aye. Councillor Chenoweth?

Aye.

Councillor Geary?

Aye.

Councillor President Peralta?

Yes.

Resolution number 2026-33 pass unanimously by a vote of five to zero. Great.

Now we're going to consider resolution number 2026-36, a resolution adopting a supplemental budget for fiscal year 2025-26 and making appropriation transfer. And I'd like to call on finance director Katie Henry. Thank you.

Claudia, would you mind making me a presenter? Sure. The information I have is not a separate presentation. It's the same information you have in your packet, but in order for better transparency and for the public to be able to follow along, I just have a bit of the, what are we doing in this supplemental? Um, just so that it's easier for people to see. Um, so let me share my screen. So most of what we have in this supplemental budget today is actually a transfer of appropriations. So as you know, we appropriate at the higher level. So mostly at the department level or at the fund level. Um, and so what we're doing here in this supplemental is almost exclusively moving things around between lines. Um, But because we go down to the individual lines during the budget process, I wanted to make sure that you could at least see what we're doing, even though there's no legal requirement to move several of these around. There are a few other types where we need to use contingency. So those would require a supplemental budget. We do not have a public hearing this time because this does not meet the 10% for any fund. These are fairly small requirements, but we're doing it in this open forum so that if anyone does have any questions or wonders what we're doing with the budget, it can be seen and they're able to contact us. So this first one is a transfer of appropriations in the community development department. There is a need for a manager to have an enclosed space. So I don't, those of you who have gone over to the community development know that it is a wide open floor space with many cubicles, but there is no office for a planning manager. And so it makes it so that there's no, no place for supervision. Supervisory Conversations, there's no place for more delicate phone conversations things like that so this is after Pinching pennies during the year, they have gathered through different amounts from different accounts where there was $1,000 here, $2,000 there, and gathered up enough to put an internal wall in. And the reason the expense is $18,000 has to do with the need to reroute air conditioning if you put a wall up. So just letting you know why is it a little more expensive than you might think than just putting up a wall. It has to do with airflow. So that's what that first transfer is. The next transfer is in police. We've talked a lot during the budget process about vacancy savings. And one of the ways as we were preparing the budget, we came up, we had too much in capital for fiscal year 27. And so the city manager and I and the chief talked through, well, how could we balance this out so we're not taking such a hit on vehicles? And so we decided to move some of the vacancy savings in the current fiscal year. And so 270,000 wasn't needed in this fiscal year because we knew we hadn't hired those people. So 243,700 was used to purchase vehicles that were up for replacement next year. And another 26,000 was used for computers. Um, for the remaining staff, the really durable ones that go in the cars, you know that they can throw around. So anyway, we're getting those for all of the police. That's what those expenses were for. And then I wanted to show the information services alongside that, because you'll see that those inner fund charges for computers from police that matches that amount. So anytime we buy computers, you end up with an expense in the fund that's buying the computer. You end up with revenue in the internal services fund, and then you end up with an expense in the internal services fund. It's all the same purchase. So that's that 26,000. And then there's another, excuse me, $7,500 cybersecurity grant that we're requesting to be able to use for software. So that's just an income and an expense of the same amount. Then we have some public art donations. There's a statue going in. There's, Been a little delay in getting the last piece of it, but we do have the pledge on the donation. In fact, it may be here by now. And so that and the corresponding expense. And then we also have... the tiniest of transfers of appropriations in wastewater services. We budgeted for a larger capital item. That's items that are over 10,000 and it ended up coming in at 9,000, which means we have to spend it out of a non-capital line. So really just some housekeeping. It's just changing the account number, but same expense. In ARPA funding, we had talked about the police safety barricades. We had originally planned to do those in fiscal year 27. We had the ability to get them early and use them for the alien days, I believe. They're hanging right now. And my... Body knows that. I apologize. And then there's also a correction for the stormwater project that I just wanted to show you so that there's no question. When you see it on the next quarterly report, it purely has to do with, you know, that we split apart wastewater and we created the new stormwater fund. And in doing that, 58,000 of our funds ended up in the wastewater instead of in the stormwater. So this is just cleaning it all up. So the right, the right cash dollars are in the right buckets. And then finally the use of contingency. So this is the, is actually the only real new budget item. So in the legal department we had several expenses that were unexpected at the beginning of the year and we wanted to call your attention to these and let you know that these are the things that contingency is for. There are things that you don't, don't know of at the beginning of the year. They're unexpected. And so you could see these in future years. We've created a separate account now for settlements so that those can be tracked separately. This was a bigger year for settlements. That is the $108,000 and then prosecutor contract, an extra $50,000. I believe that had to do with the dog cases. In wastewater, we had a new treatment put in, and it requires more electricity. And so we had to bump up the utilities cost, not because the cost of utilities went up, but our usage of utilities went up. And so that has been, um, appropriately adjusted in the new budget for 27. Um, but this was an adjustment that needed to be made for 26. So with that, that's all I have for the, um, supplemental budget and we'll come back for the next resolution.

Any questions for Katie Henry? Yeah.

Going back to the planning department, I don't know where the $18,000 came from as far as the bid for the work, but did that also include the, I guess, consideration of the fire suppression system? I've moved walls before in buildings and I've had to change around the fire sprinklers because they weren't going to be to code at that point.

So the, the estimate comes from, we did, we did solicit bids from several different contractors. So there is a basis for the estimate. We, I do not believe that that property is actually sprinkled.

I should know this, but even better.

Yeah. So, but it does not, it does not include that. It, it, it's to code the properties to code. Um, but it doesn't include, uh, the fire sprinkler system. It doesn't include any sort of additional costs associated with that. I know that the primary cost beside the build out of just the physical structure was the HVAC return.

I figured, I figured it would be, I just wanted to check in with the fire suppression, but if there isn't on that, I guess that answers it. Thank you.

Yeah. All right. Any other questions? Okay, so do I have a motion to consider resolution 2026-36, a resolution adopting a supplemental budget for fiscal year 25-26 and making appropriation transfers?

So moved. Second.

I have a motion from Councillor Cunningham and a second from Councillor Geary. Any further discussion?

Claudia? Councillor Cunningham?

Aye.

Councillor Tucholsky? Aye. Councillor Chenoweth?

Aye.

Councillor Geary?

Aye.

Council President Peralta.

Yes.

Resolution number 2026-36 passed unanimously by a vote of 5-0. Great.

Now we're going to consider resolution number 2026-37, a resolution adopting the budget for the fiscal year beginning July 1, 2026, making appropriations, imposing the property taxes, and categorizing the property taxes. I'd like to call on Katie Henry, Finance Director, to present.

Thank you very much, Mayor. We have... Trying to figure out why this won't change. There we go. So there are just a few changes that have come up between the approved budget and the adopted budget. Typically, these are almost the equivalent of Scrivener's errors, things that we find that just need to be cleaned up for... the final budget. Um, so just to go over these real quickly, um, in the library we had adopted the whole 78,000 to add, um, opening on Sunday into professional, into personal services. Um, and 10,000 of that needed to be for security. So that needed to go to professional services. So that's just a splitting out of that amount. In emergency communications, this is a tiny amount, but the difference is $301 between what was in the budget and what ended up passing by the board. And this was me rounding things, but it's a transfer between funds that happens between the general fund and the emergency communications fund. And if we don't adopt it in the full amount, then we can't transfer the full amount and then we'll be short with Wicom. So we need to fix that $301. Then we have general fund administration. This is in community services. We've received a pledge for $10,000 for the city's birthday celebration. And so we would like to add the money, the ability to spend that donation that we're going to be receiving. So this is an increase to revenue and expense. And then the final one is insurance services. This was one where one fund doesn't match the other fund because of different timings of when numbers went in. So it doesn't impact appropriations. It impacts the revenue and the ending fund balance. It's a smaller amount for the insurance fund, but $5,182. And those are the only differences between what you've already seen in the approved, what went through the public hearing, and what is in front of you today.

All right. Any counselor have any questions for Finance Director Katie Henry? Councilor Chenoweth?

Is this the time if I want to make a comment that I would make a comment to?

Why not?

Okay. Thank you mayor So I'm in advance of me voting on this. I do want to put on the record I have since being on council. I have not voted in favor of a budget. I have not voted in favor of particularly of a budget that resulted in an increase in our tax costs, our tax charges to our constituents. And this year I'm going to do so. And so I thought I'd take a few minutes and explain why I'm going to do so for those that have heard my consistent attempts to prevent this from happening. One of the things that I've heard over the last several years from voters and from my constituents has been that we're not maintaining our buildings. That has been a loud and consistent voice across the spectrum. The increase in taxation roughly represents or the money from that is roughly all going to said building maintenance. So I feel like this is something that citizens have loudly spoken for and loudly want to see us do and we're doing it. On top of that the beginning of this process our city manager started out by making it clear that he asked for belt tightening across the city which was another thing I was asking for. which was done and it was seen in what was presented before us. So my hats off to the executive team, my hats off to the city manager and I appreciate that we are looking at a budget that to me is more responsible and also at the same time as the third area is it's increasing our contingency to a level that is more sustainable and is what has also been asked for by our constituents. So between those three areas, this budget actually, well, it does represent an increase, which I do not favor. It also is responsible budgeting, which I do favor. And so with that, I will be voting yes on this, and I just wanted to put that on the record. Thank you.

Thank you, Councilor Chenoweth. Any other questions, comments? All right, so... I'd like to ask for a motion to adopt the fiscal year 2026-27 budget, make the appropriations, and impose and categorize property taxes. I have a motion from Councillor Tucholsky and a second from Councillor Geary to adopt resolution number 2026-37, adopting the 2026-27 budget and the total amount of $137,484,517 for the fiscal year beginning July 1, 2026 to make the appropriations in the amount of 80% 1,860,774 to impose and categorize the city of McMinnville's permanent property tax rate of $5.02 per thousand assessed value for general operations and 2,990,528 for debt service. Okay, any further discussion?

Okay, Claudia. Council Cunningham.

Aye.

Councilor Tucholsky. Aye.

Yeah, I want to make a statement. I did want to say that I am thankful. We all work together this year and the city executive team came to the table with what was a very reasonable and I would say a palatable budget. So thank you for that. I know it wasn't easy. Also, I wanted to thank the budget committee, although they're not all here. I do want to say it was a very civil and very pleasant experience this year. So thank you. Thank you everyone for that. And I also just wanted to thank my fellow counselors and say, you know, I appreciate your views and I'm thankful that we work together as a team this year. So Claudia, yeah, I thank you.

Councilor Chenoweth. Councilor Geary.

Aye.

Council President Peralta. Yes. Resolution number 2026 dash 37 passes unanimously by a vote of five to zero. Great. Thank you. Yay.

All right. We're getting close here. We're down to reports from counselors on committee and board assignments. And I'm going to start finance director, Katie Henry. Do you have anything else to report for tonight?

Just that we are starting up on the court software. So for real, we have our person we're assigned and we're starting meetings on Thursday. I will be taking that meeting from a train station because I will be heading to the GFOA conference, but I will be in that meeting and we are launching that project. Great. That's good to hear.

Planning director, Heather Richards. Yes, thank you. A couple things to report. I want to let Council know that two applications for consideration for an Opportunity Zone 2.0 were submitted for two different census tracts here in McMinnville. Um, the first census tract is what we call the Linfield tract. The city submitted that application that has about 23 acres of high density residential land available for development, 48 acres of commercial land available for development and seven acres of industrial land available for development. The opportunity zone is a tool in the toolbox for developers in terms of being a funding incentive, uh, for tax credits and breaks. Um, Um, the other tracks was submitted by McMinnville economic development partnership. It's the track that we call the East McMinnville track. This is a much larger track to here in the city that encompasses most of our industrial land and property. So that has the 190 acre McMinnville landing site. It also has an additional 37 acres at the McMinnville Airport. It has three large parcels in the industrial park, 28 acres, 26 acres, and 17 acres, respectively, as a 20-acre mixed-use high-density residential development and a 35-acre fairground site as potential development sites that developers would be looking at. to utilize this tool. This tool is good for very large developments and large investments. And so that's why we were looking at the larger sites as we submit these applications. Both have been confirmed as being received by Business Oregon. The state has the opportunity to submit, I think it's 29% of the applications received, somewhere around there. to the federal government for the opportunity zone identification. And so we're hopeful that these are two strong sites for the program. The state might want to geographically distribute their opportunities. So we don't know how that will play out, but I wanted to share with you that both applications were submitted and who they were submitted by. I also wanted to share with you, um, we have a couple of appeals rolling through our process right now. Um, empowered did appeal the city council's decision to deny their sign exceptions application to Luba. Um, I'm sorry to say this is my first Luba appeal in 20 years of being a planner in Oregon. I was hoping to get through the career without one. Um, but we are working through that. We're working with legal counsel on defending it. Um, and we'll keep you apprised as city council, as we move that forward. Luba appeals are expensive to, to defend. So we're going to put that, that together. And, uh, it's a lot of staff work to put the record together as well. Um, then there was also an appeal from a community stakeholder of what the, of the downtown design review decision for what we call the BN star project. You might've heard that of that downtown that's been, that was a decision, the historic landmarks committee approved, two land use applications associated with that project, one for compliance with our downtown design guidelines and standards, and one for a certificate of approval for demolition of a historic landmark. Only the application for compliance with our downtown design guidelines and standards was appealed. It's been appealed to the Planning Commission, so the Planning Commission will be considering that at their July 16th meeting. I'm telling you this because it may come up to you, so again, just like with our other uh, projects that are rolling through the system, be cognizant of that, uh, in terms of how you engage with people and potential ex parte contact. Thank you for all that.

Our city attorney, David Langberg.

Thank you, ma'am. Nothing from the legal department tonight.

Okay. City manager, Adam Garvin.

Thank you, Mayor. Pretty busy last couple weeks. Attended the EVLC meeting with Public Works Director Hunsaker around parks SDCs and had some good conversations with those around the table there. Had a property meeting with John and Sam from Water and Light around the Miller Street property, the Wagman property, and our existing Public Works property. I attended a demo for a camera and access control vendor around centralizing our city system as things life cycle out. So we look long-term of getting everything onto a single pane of glass as well as having some access control. So everything's not ran off of a master key around the city. which has been a long time goal of our facilities team. Uh, so just trying to be forward thinking on that, uh, to a monthly with MDP, a monthly with John from the chamber. Uh, I presented at Mac water and light similar to what John did this evening. I presented the city side of that to the water and light commission and water and light staff visit McMinnville board meeting with counselor Geary, uh, and then participated in the peace run passing through town. And the mayor and I ran a couple blocks. Yes, you heard that right. We ran a couple blocks. Um, and then, uh, I also wanted to make you guys aware that there's going to be some, uh, blasting going out on the far West side of West second for the housing development out there in the coming weeks. And so you'll likely get some feedback on that from constituents and, uh, they're waiting on a final permit from the fire district. But after that, they're going to get going on it potentially as early as next week.

Right. Thank you. Counselor to call ski.

Yeah. Thank you. City manager Garvin. Is there a blasting schedule you could share? I can afford something onto you guys. Yeah. Yeah. Thank you. It's just be nice to know when those emails are going to land. Thank you. 6-11, so June 11, as the liaison for the DEI committee now, I attended the DEI meeting and had that meeting, the team there planned the June 19, Juneteenth celebration that took place this past Friday, which I also attended with Council President Peralta and also showed up as well. So it was a good turnout there. I thought it was a respectful event. And so it was overall positive. So airport commission has not met. So that's what happened.

Councilor Geary.

Thank you. Murak, no meeting, but we're underway. Mayor and I are on interviews. We have five applications for one open position, so good interest. It's good to see the community showing up and looking to lend a hand. Visit McMinnville. I know you guys have heard a lot from them recently, so I'll just be quick. The Monthly rates, overall occupancy is up 2%, but the average daily rates down about 14%. So we're seeing those kind of net out about neutral. And Data Steve, our man, sort of puts those squarely on gas prices remaining high, 4.2% inflation rate. and consumer sentiment continuing to plummet. So sort of keeping travel down a little bit and local hoteliers are trying to adjust their rates to keep people in but maybe not be such a high average daily rate. In terms of visit McMinnville work as we close the budget chapter on the year and close the budget chapter on revenue sharing model, and open a new one. We spent some time talking through an overview of budget priorities relative to that proposed budget percentage change in the TLT. And then using that to dovetail with some developing of 26, 27 organizational goals. And the website will be launching soon. I also attended the Juneteenth celebration with my son Hiram. It was very fun, good music and good messages. Good to be out. Let's see, tomorrow night we'll have the McMinnville School District Long Range Facilities Task Force meeting. So good stuff there in terms of speaking about the bond coming up for them next year. So we'll be learning more about that and working more about that towards a recommendation of what that will be for the school district. And then hopefully not stepping on anybody else's toes, but I'm looking forward to 9 a.m. The Wortman Park Walk tomorrow at the Senior Center as part of Summer Fun, as well as Storytime at 10 a.m. in City Park. And actually 11 a.m. this June 27th of Saturday is the Science Saturday Rockets in Joe Dancer Park. That event should probably take off. Blast off. That's it.

Okay. So on the 10th, I hosted the County mayor's meeting and we talked about the urban form, which is a, um, a program that you can get onto and can tell you about a piece of property within the cities and the County, um, met with Noel Amaya, our communications manager. We discussed opportunities and ideas for engagement with the school district and with families that, that are part of the school district or ways that we can, um, get our city message to those families. Um, we start also discuss some marketing ideas for, um, our city's 150th birthday celebration, which are a reminder of the parade and a party in the park is October 17th. Um, it's time for the annual mayor's made tour, which means things that are made in McMinnville. Um, the tour that we did go to already was McMinnville, uh, It's put on by a McDonald economic development partnership. They host it, but we visited applied physics. They manufacture precision electrons and ions sources for advanced microscopes and also 3d printing and semiconductor manufacturing. Um, I attended the McMinnville leadership gathering where the group talked about SDCs, mostly park SDCs, tourism, the upcoming bond and a news register and ways that you can be part of the news register to celebrate the 150th anniversary or birthday for the city. Also, um, talked about the Newberg Dundee bypass. Bi-monthly legislative meeting with our city team and lobbyists. Thoughts putting those together for this year's legislative session. I've had two since the last meeting. McMinnville Chamber of Commerce greeters was at Staples. Visited and got to stop by and visit with our judge. So Judge Poole, he's a great guy. Was able to go into his chambers and visit with him for a little bit. Yamhill County Economic Alliance meeting where we had a robust discussion about urban form. Had my one-on-one with city manager Adam Garvin. Chamber board meeting, first meeting in our new building, which was great. Nice to have a location to meet each month. Talked about scholarships, pleased with who they were able to award, but there's still money on the table. So if you have a senior that needs to apply for scholarships next year, make sure that you take a look at what they have to offer. And then as a city manager Garvin mentioned, we hosted or they stopped by and we greeted him. I should say the peace run, the people running are from all over the world, from Hungary, from Austria, Australia, Scotland. It was great. They were wonderful people and they guilted us into running two blocks.

but it was fun and we held the torch as we ran.

Yesterday, as Councilor Geary noted, we started the interview process for a seat on MIRAC. We'll continue that tomorrow. And today had the 150th celebration meeting. So we are in a good spot moving forward for that. Councilor Peralta. Thank you.

Thank you, Mayor. Council of Governments met last week in its quarterly meeting, approved the Council of Governments budget. The main item for that is there will be a fairly significant increase in cost for service as they try to balance their shortfalls from previous years. Had a really nice time presenting at the Juneteenth Freedom Day celebration. Really appreciate the DEIAC committee for putting that on and also beerly brewing and Good food for hosting it, as well as the News Register and MCM 11 for their coverage.

Councillor Chenoweth?

Yeah, so Parkway Committee met. As you have seen, Phase 2 is still under construction of the Newburgh-Dundee Bypass, Phase 2A, which is the interchange as you're right at the end of the bypass in Newburgh. I mistakenly stated that there was going to be construction on Highway 18 in 2026. It's in 2027. So all of the warnings I've given about the construction to come is in 27. We're seeing a lot of love from ODOT and the OTC. The OTC recently approved full funding for McDougal bypass or McDougal intersection. So we're going to see a roundabout going in there and complete redo of that intersection. Both the work that is scheduled to be done in McMinnville and the McDougal work are going to bid in October. Um, but good news, they're not going to try to do them at the same time. Um, so, uh, ours is doing done in 2027. McDougal will be done in 2028. Um, Um, and at the same time, we are also in the step with a potential roundabout that's going to go into place in, uh, at Lafayette highway and, uh, highway 18. Um, that is hopeful to go into design. The money's there for design already. And hopefully we'll be into construction in 2030, 2031. So Yamil County seen a bunch of ODOT love and McMinnville seeing a piece of that.

Um, and,

And I think that's all I have. Oh, MEVLC, Matt, I wasn't there for it, but it's robust discussion regarding SDCs, good information provided to kind of build up the information level of what SDCs look like and how they might impact and whether or not the EVLC wants to take any sort of role in helping formulate how that's going to look. And that's my report.

Thank you. Councilor Cunningham?

I did not have any committees meet. The affordable housing did get canceled. We will have the historic landmarks, which I can actually attend for the first time in a while on Thursday. And I just do want to give a shout out to... everybody that made this weekend in downtown. Just, it was really awesome. Great energy. We had Juneteenth on Friday. We had the pride day on Saturday and then make music. McMinnville Make Music McMinnville, there it is. That was on Sunday and that was all over McMinnville and that was awesome. Got a lot of people out and I will tell you all your retailers and food and beverage establishments were very happy over this beautiful weekend. And I want to just point out to Councilor Geary that he did not have a he did not talk about the award of the transportation system plan update, uh, which I was expecting from you. So, uh, which was awesome. And I think, uh, it's a very thorough award for that one. So thank you.

Audio Cisneros city recorder.

A lot of my work that I've been doing was on your consent agenda tonight. Thank you all. And then just want to note that next Friday, July 3rd city offices will be closed in observance of 4th of July.

Great. Thank you. HR director, Vicki Hedges.

Thank you, Mayor. Just an update. We have one week left for our annual training. And the good news is a lot of people are getting their training done because there ain't no minute like the last minute. So we have 81% completed their training. 11% have not started their training. And 8% are in progress. So getting better. Otherwise, HR has been helping different departments prep for their new budgeted positions, including moving some internal employees for succession planning and then helping with recruitment. And for the big news that you all have been waiting for, I want to announce that we have selected an applicant for the Parks and Rec Director position. Jeannie Sprague will be joining us July 27th. I did invite Jeannie to be here tonight, but she had another event at her current employer, so she wasn't able to join us.

You're right. She's coming from Lincoln City, correct? Correct.

Okay. And she did attend the work session online and sent me a very detailed note she took, so very exciting on her first report.

Chief Wood.

Well, HR has been a great help to the PD over the last few weeks. We've got three people who have accepted conditional officers to come be police officers with the city of McMinnville. Pretty excited about that. We think we can get one of them started next month and the other two sometime in the month of August is what we hope. Get them to the academy classes that open up in August. We have two officers that are in the field training program right now. They doing well so far. So we're very hopeful to get them out solo and on the road very soon. Uh, we have made some significant progress towards rolling out our bicycle patrol program. So, uh, with the help of McMinnville industrial promotions and visit McMinnville, we were able to use some grant funds and we've purchased some bicycles. Uh, we have some officers selected to go to the international police mountain bike association class next month, starting, uh, actually starting this Sunday down in Corvallis. Um, And you should sometime in the very near future this summer, start seeing Mac PD officers on bicycles all over town is the hope. Um, the last thing, uh, I have for the evening is that Mac, uh, Mac PD was the very, uh, fortunate recipient of a donated police motorcycle from a Metro area law enforcement agency. They were downsizing the size of their fleet. Uh, and we received a fairly late model BMW motorcycle with low miles on it, um, for free. And if you remember late-night TV, like Tom Peterson said, free is a very good price. So we're excited to have that and continue to work towards getting our traffic enforcement unit out there on the road.

Wow, that's exciting. Great. We have a question from... Yeah, can I ask a question, Chief?

How many vacancies do you have now with those three new hires?

With those three, make it to the final offer of employment, it will be three. That's great. Thank you.

Public Works Director Jeff Hunsaker.

Yes, so with tonight's contract award for the TSP consultant, we are on schedule to have a notice to proceed for them on July 1st, which would put our first project advisory committee in late August, maybe early September, because that's a tough time with vacations and school starting up. But we are still looking for PAC members for that. It's gonna be a pretty large PAC because it's a pretty large project. And so I'm gonna be sending a link to all the city council members' emails with that application. And if you could help me out when you're out talking with people in the community that you think would be good PAC members and you wanna give them that application, that'd be great. We're looking for A very broad representation, as broad as we can get, and we are specifically still looking for youth and Latino community representations on that. So if you could help us out with that, that'd be very appreciated. And then also with the approval to purchase some street sweepers tonight, you'll see City of McMinnville street sweepers out on July 8th. So we'll be taking that in-house.

Great, thank you. Library Director Jenny Burke?

Hey, this is great because I calculate that I still have 36 minutes to get you out by 9 o'clock. Given that, you know, I've got a couple of departments to talk about and we just kicked off summer fun, I'll try and make it quick. Thank you to many of you for mentioning Juneteenth. I do want to give a shout out to the Friends of the Library who sponsored the band at that Juneteenth celebration. And mention of the, Claudia mentioned that the city offices will be closed on July 3rd, but the library will be open. And it will be closed on the Saturday, July 4th, though. I believe that city manager Adam Garvin mentioned previously that long, long time city employee, Steve Ganser is retiring soon after more than 30 years of service. And thank you so much to all that he's done for the community. And I also want to call out Rachel Kaplan who has taken on the additional duties for for Steve while we wait for the new parks and rec director to make the decision about how to move forward after that. And so she's keeping the sports recreation programs going strong. School lunches are starting at city park Monday through Thursday at 10 30 AM. So, um, kids can come in of all ages can come and get a lunch there. And there's also other school lunch programs happening throughout the city. And as councilor Geary called out, there is a story time tomorrow at city park and it is a fantastic event. There's often hundreds of parents and kids there, and you'll get to see long time city staffer, Nikki Hardy, singing and dancing and telling stories along with children's staff and the volunteers. And let's see what else bookmobile visits are starting on July 7th. They're going to Redwood commons and Tice park apartments in McMinnville. They will also be, the bookmobile will also be visiting Joel Perkins park in Lafayette. And that is with a, grant funded through Yamhill Community Care Organization. We've got the first movie in the park starting at Joe Dancer on June 27th. And then July 7th is the first summer concert of the summer fun season in City Park. And for all of these and more, you can pick up, you can find a summer fun schedule online and or pick one up at the library or at the community center. Thanks. Great.

Good job. It is 826 and I adjourn the meeting.