City Council - Regular Meeting

we'll call the meeting to order and establish a quorum here excuse here so please stand for the blessing from fathers sagey Thomas from st. Thomas Catholic Church and then cat will lead us in the Pledge of Allegiance Heavenly Father

We come together today to ask for your guidance and wisdom as we begin this meeting for the city of Redmond. Bless the mayor, the members of the council, and all city staff. Grant them the discernment to make decisions that promote the common good, justice, and peace for all residents. May our deliberations be filled with respect, understanding, and a shared commitment to serving this community. We ask this through Christ our Lord.

I pledge allegiance to the flag of the United States of America, Okay, I don't think we have any city announcements tonight, so we'll go to the consent agenda, which is made up the minutes of May 18th, and then the August recognitions. Is there a motion to approve the consent agenda?

I move to approve the consent agenda.

Second. Moved and seconded. Any further discussion? All those in favor, signify by saying aye. Aye. Okay, we'll go to presentations and we have the first one on the tiered rate billing system based on water usage for an informational presentation.

Josh.

Got a jacket on tonight.

Good evening, Council. Good evening, Mayor. Josh Wedding, Public Works Operations Manager here for the city. And I'm here to present to you tonight what I would consider a culmination of about a year and a half of meetings with you guys, different data sets. This is high level condensed. Tonight we'll have for Linda Korn in case you guys have finance questions. James Wood, our finance director in case you guys have finance questions. And I'll also allow our consultant, she's online. Her name is Deb and I'll go ahead and allow her to introduce herself.

Can you see me and hear me?

Yes, Deb, thank you.

Okay, great. Deb Gilardi, Gilardi Rothstein Group. I'm a consultant that specializes in utility rates and finance.

Awesome. Thank you. All right. So we'll dive in here. So to kind of give you guys an idea of why we've chosen to look at a tiered rate structure is two main things. We have some water right constraints that we have to continue to grow under. And we also have the state of the natural resource. And as you guys know, we've had precipitory changes at the head of the base in the last five, six years. And there's also changing hydraulic conditions in the basin. So not only are we looking at the constraints we have under the water rights, we're also looking at the state of the natural resource. And you guys feel free to ask any questions as I go throughout this presentation. So what this structure really looks at targeting is outdoor water use during the irrigation months in Redmond. And so when we were looking at things, what we wanted to be able to show was is Redmond's actually pretty efficient at indoor water use. So in the non-irrigation months, we consume about 50 gallons per person per day. We're blessed in the fact that Redmond is fairly new in terms of infrastructure, and so most of the housing has pretty up-to-date plumbing code. And so there's really not a lot of savings to look at when it comes to indoor use. And we kind of flip and we look at how we do in the irrigation months, right? As you can see that there's room for improvement there, right? A lot of that water use is outdoors. This graph here just kind of shows overall water use in town from the non-irrigation months and as we ramp up into the irrigation months. And this is consistent year after year after year. You know, it's six to seven times the amount of water use in the summer as opposed to the non-irrigation months. And then this slide here. So out of all the uses in town, residential accounts for 70% of all water uses in the calendar year. What's interesting to note here is 84% of that use occurs in the seven irrigation months. And to put that into numbers, that means something. So in calendar year 2025, all residential uses consumed 1.7 billion gallons of water. Of that 1.7 billion gallons, one billion gallons of it was irrigation water used in seven months. So the entire town for 12 months out of the year used 700 million gallons to support indoor uses. There's a big dichotomy that exists there. Kind of give you an idea of steps that we've taken internally. We've done over the last year and a half, two years, we've done a bunch of water-wise landscape projects downtown, kind of representing what different reductions in water use would look like. And of course, what that landscape would look like as well. We've got a 25, a 50, a 75% reduction. And what we did is we really wanted to showcase aesthetically how each one of those reductions looked. We've got a pretty strong public outreach campaign. And we also worked with development to get some private code amendments in. Really what that looks at is addressing development before it happens and really getting in some water-wise landscape and smaller turf footprints. We also have a pretty robust rebate program. And like I said earlier, we're really looking to target outdoor water efficiency. This whole program is pretty in-depth, and it's got a lot of different modules. But from a really, really high level, what we were looking to do with this program is to save about 10% water over 10 years. And this program, obviously, you know, It rests on voluntary compliance, right? Participating in the rebate program. And each year, as you can see, we invest a hefty amount into this program. I'll let Deb take this slide here.

Okay, thanks, Josh. A water conservation oriented rate structure is an important additional tool to achieving the city's conservation objectives. Tiered rate structures like the one shown here are the most common type of conservation structure used by nearly half of utilities nationally and an even higher percentage of utilities in water scarce regions like the city. What makes these rate structures so popular is that they are effective at incentivizing conservation, particularly for that peak outdoor use like Josh was showing. And they're designed around local water use patterns and specific objectives. For Redmond, the proposed structure includes four tiers initially. Tier one applies to water use up to the average winter month consumption for a residential customer, and that's about six units of water or 4,500 gallons. Tier two is a transition tier for the next six units of water so that customers with larger indoor use have an incentive to address water leaks or other inefficiencies associated but prices are kept well below the summer incentive rates. And then there are two upper tiers that really target that outdoor water use with progressively higher rates designed to achieve a 5% reduction in overall water use per account during the initial phase of implementation. It's really important to understand that a customer's bill is dependent on how much water is used within each tier. Since the highest incentive rates only apply to that use that's over the first 12 units of water. So once you get into tiers three and four. In the future, the tier pricing can be modified to balance the city's conservation and other goals in response to changing usage patterns and overall revenue needs. So if the mayor has a dream and it has a number five, you can add a fifth tier, which many cities do, that can be invoked at times of acute drought or just to provide additional incentive. So it's a really flexible structure. And we think that the rates and the tier thresholds that are shown in this chart are a good first step for that initial phase. Back to you, Josh.

Great. Thank you. Any questions on that slide?

Sure. I'll just ask one basic question. What are we going to do with the extra money we get? Where is that money going to go?

So that's a great question, Councillor. So this structure is designed to be obviously revenue neutral. But if there is additional revenue that's generated, we anticipate that going right back into the rebate program, right? To provide more tools and resources for the community to meet the needs of this structure.

So we see the... And when I start putting numbers, dollars, to gallons and what the usage is, I'm lost.

Sure.

So $165, is that about what we pay per whatever?

Yes, that is correct. The current volumetric amount is $1.65 per billable unit.

Okay.

That helps.

Thanks.

Any other questions, Jay? Okay. Go ahead, Josh. Okay.

So this slide is really neat. So you guys saw that the prior slide that showed that the peak use demands in the summertime. What this slide really represents is on the left hand side in the bar graph shows the number of accounts that exist in a tier three and then the number of accounts that are in a tier four. And we can see those increase as we get into April and May, June, July, August, September, and of course back down. What the bar graph doesn't show you is the number of accounts that don't even make it into tier three or tier four because there's really no impact to those accounts. Interesting thing to point out is if we're focused on tier four, From an operation standpoint, that's really where I'm looking. So when you look at tier four there and you go, well, my goodness, that's a lot of accounts. I think the question was posed to me, well, of those accounts that exist in tier four, how many of them are just barely over the threshold? So at a quick blush today before I came here, looked at some numbers from 25, and it's about 1,500 to 1,600 accounts that are just over that Tier 4 threshold. So really, really simple behavior pattern changes that can get you down into a Tier 3 and possibly even down at the bottom of a Tier 3. So that's the bar chart on the left-hand side. On the right-hand side is the impacts, the average impacts in those tiers. And so, of course, Tier 1 is no impact, Tier 2, very minimal impact. So if you're a tier three user and you just barely crept into tier three, you're gonna see a 50 cent impact in that tier. If you decide to go all the way up to 21 units and take full advantage of that tier three, your impact is gonna be roughly $3.50 in that tier. Now we get into tier four, right? That's obviously the biggest lever. So the lower end of the scale is $3.50. And if you choose to continue to use water and go to the upper end of the scale, and when I'm talking the average upper end of the scale is 100 units, it's a lot of water. You could be looking at an impact of Tier 4 of up to $49.50. And this is also a good slide. So this is a pie chart that represents the monetary amount that we collected each tier. So tiers one and two is accounting for roughly 63% of the monetary amount collected through bills throughout the course of the year. Tier three is 16%. And of course, tier four is 21%. And I've got an interesting fact. It's a tier four that we'll get to in a second. So some great opportunities with this rate structure, right? We're looking for, you know, hopefully have to, you know, a 5% reduction in water demand in the short term. To me, that means a lot, right? 5% is being very, very conservative as well. I think there's a lot of opportunity to conserve more, you know, but 5% is roughly 65 to 70 million gallons in that short irrigation window. Long-term reductions of 10% or better, which goes to meet council's goal over the next 10 years of a 10% water reduction. It's a great opportunity to align with water use, with the water right constraints that we have, as well as the long-term capacity of the resource. And one of the other important things that's hidden to the public, but very, very, very important, visible to me as an operations manager is capital project deferment, right, which goes to support growth capacity. And what that means is the more water we conserve, the less wells we've got to construct, the less reservoirs we've got to construct, the less booster pump stations we've got to construct in a short period of time. We're looking to push those down the road. So that's important. And the interesting fact about the tier four percentage, is of that 21%, that accounts for 30% of the demand in town for the entire year. So that's slightly disproportionate. That's a lot of water. So what we were asked to do was compile kind of what this would look like and get this onto the customer's bill ahead of adoption and implementation. So they had a general idea of what their bill would look like based on current use if they chose to make no behavior changes. And so I'll kind of go through this and explain it. Your first tier of course is six units, $1.65 in that range, $9.88. So no change to the volumetric amount in tier one. It's the same as what we charge now. Tier two jumps up a little bit, it's $1.73, so you're gonna pay eight extra cents a unit in that tier. That would be 1038. Tier three is, of course, 12 to 21. Slightly higher volumetric amount, $1.98, total of 17.82. And then, of course, tier four, the tier that we're focused on, is a 223 unit charge with a total price of 85.21 based on 59 units of water used in the month. Of course, we've included our base rate, and you can see your estimated total. based on the new tiered rate structure of 143.67 or what you currently pay at $118.06. So that's what it would look like if you chose not to change your behavior patterns. Any questions on this one?

Josh, I do have one question.

Yeah, sure.

So I want to make sure that I understand this correctly and that kind of the folks at home understand it. this is a progressive fee schedule correct so the first gallon all the way up to the last gallon of tier one is charged at that dollar 65 per unit that from the first gallon to the last gallon of tier two is going to be charged at the 173. it's not as soon as you hit tier four all of the previous gallons that you've taken out are not going to be charged that higher rate correct that is absolutely correct it is only the amount that you are using within that tier that is going to be charged and all of the numbers that you have covered in terms of the $50 and the cubic feet, that's all on a monthly basis, correct?

That is correct.

All right, thank you.

Josh, as I understand it, if we compare our current water rates with other jurisdictions, are we high, average, or below?

I'm going to have Deb answer that question because she's pretty studied up on this one.

Actually, we have a slide in the deck there, Josh, that has a table I think that would be really helpful. I think it should be the first one behind the last divider slide, maybe, the Q&A after the Q&A. The answer is you're low. You're significantly lower. And from the other ones that we looked at, even when we look at this rate structure. So if you go one back, I think this shows the ratios, but if you go one, oops, maybe not, maybe go forward. There you go, there it is right there. Yeah, it's a little small, but you can see that we use two different usage levels, 1,500 cubic feet, which would be a user that goes into tier three. and then 4,500 cubic feet. And this is again, meant to be a monthly bill. And so a user that goes into tier four. And you can see that the first bill, the 1,500 cubic feet would go from the 4513 to 4660, which is lower than all of the bills of the communities that are shown here. All of the communities that are shown have the tiered rates except for Bend, which has a uniform volume rate, so all the usage is charged at the same rate. And then if you look at the larger user at $112 under the revised rate structure, it's still significantly lower than the other communities shown.

Thanks, Deb.

OK. Moving along. So this is kind of a mock up. This is what we've kind of been working on with billing to kind of show a customer this is what your bill would look like. This would show up in some format on your bill. ahead of implementation so that you could kind of look and compare and see what it would be versus what you're currently paying. It's kind of a repeat of that last slide just stuck on the bill there.

And again, a unit is how many gallons of water?

One billable unit is 748 gallons of water, 750.

So in this particular example, 59,000 units?

So that's 5,900 units. So if you took 5,900 and multiplied that by 7.48, that would give you your amount of gallons. So I can tell you that the top end of tier three is 15,000 gallons, if that kind of gives you any perspective, which is a bit of water. So this is our proposed implementation timeline. So of course we're here, or July we had the council work session. And then August would be meeting with you guys again for adoption. August through March would be a pretty strong public outreach campaign. Of course the rebate program is always ongoing. We anticipate that probably ramping up next year. And then an April 1st implementation timeline.

Jay? I never checked my last bill. Shocker, I know. But are these rates out there so people can begin to see them before we even adopt it?

Not yet. We want her to meet with you guys first.

It would be kind of nice if they saw it before we actually made a decision. So if there was something that they had,

And let me help Josh with that response. So that's why we're not going to put prices out until you say do it. But what they could get is like a mock-up bill with some of the information that Josh is just showing since the implementation starts in March that we can include that information on the bills leading up to and through March. So they'd get six, seven, eight months of that information. And then as well as being able to be told, hey, right, if you water at these times, your water at this duration, or you put on all the things that they can do to make sure that they're not inadvertently using more water than they want to.

So the public outreach and the implementation are falling towards the end of the irrigation year. So most of what they're going to see in their outreach and their bills is going to be their lower use and the mock up on that. Are we going to take a little step into the past and say last year you were doing this in the summertime and maybe you should think smarter before April?

No, we can definitely do that, right? And it's council's prerogative too. If you're like, hey, we wanna start it in October of 2027 and in the summertime of next year, tell them if you continue to use this rate, here's your bill now, but here's what it would have been with the rates. So you can toggle some of this and make sure that when it gets implemented, it's implemented in the way that you want it done.

because that was where I was heading. The last thing I want to do, full disclosure, I'm not a big fan, but I think that people need to see what they're gonna be hit with before they're hit with it.

Yeah. Anything else, Josh? Do you have more?

This is my last slide.

Okay.

I think I'd appreciate that preemptive information. I know that I've really enjoyed utilizing the AquaHawk app to learn and figure out how to lower my own water usage. And so I know if people have the ability to do things, for instance, we've been able to do, which was change the sprinkler heads, reduce water usage by one minute to change the amount. that it affected tiers, changed the timing, and removed just a small amount of turf in our yard, that if people had time to do that and to educate themselves, that would be really helpful.

Thanks, Josh. To put this in context, water is going to be the issue in the next 10, 20 years here in Central Oregon. We're not getting as much precipitation. We're not getting as much snow. It's a huge issue. This November, COID is going to start a piping project, which will impact the aquifer below us, dropping it anywhere between 30 and 60 feet. Water is going to be a critical issue, and the more we could conserve, the better off we'll be as a whole community. No one likes any increase in rates on anything. But if we don't do it, we're going to be in worse shape. So this is the start of the process. We'll be getting public input on it. But from my perspective, dealing with these water issues for a long time, this is a step I think we're going to have to take in the future. Jake?

Yeah, I would agree. Water conservation is important, and everybody should try. And I believe people aren't built to just waste. I think most people look at it and say, what can I do better in conserving water? But that said, we're 3% of the whole Deschutes County. Our city is about 3%. We're just talking about billing our people for not very much of the aquifer, if you will. So that's kind of where I'm at. All right.

Thanks, Josh.

I do have just a couple questions. So we've gone through these presentations for quite a while. And I appreciate all of the work and the dedication and the math that has gone into this. I guess for the folks who are kind of coming to this for the first time, or who are going to be looking back on this when they get their bill, we know that water conservation, we know that let's do a little whiskeys for drinking waters for fighting, right? That's always kind of the old cliche. My question had, have you looked at, and can you speak to us as to why you're recommending this option to encourage conservation through kind of capitalistic means as opposed to surge pricing or kind of adjusting the rates month by month, depending on the demand. If we know when the demand is, why is this a better formula than just simply jacking up the prices in July and August?

Sure. And I don't know, Deb, do you want to speak to that question? I can answer it from an operational perspective. You might be able to answer it more from your knowledge.

Sure. Yeah, I mean, it in effect functions as somewhat of a seasonal rate structure in that most people are going to be hitting tier three and four in the summer. And so I guess that's what it's targeted to address those higher usage levels that Bish has shown so clearly in the graph. And this has been proven effective in other communities at having significant reduction in water use. And it balances the administrative requirements in that it's a fixed schedule, fixed tier, fixed price for that usage. Obviously, you know, an important part of any conservation rate structure is to monitor, to see what results you are getting locally and to make modifications as needed. But it allows people to know what they're going to be charged when they, you know, if they use progressively higher rates of or higher volumes of use. And the studies show that just the rate structure alone and having people understand that water gets more expensive the more you use and particularly in a scarce environment, that sends a price signal for people to reduce use. And then of course the tiers having the surcharge on the higher volumes sends an additional signal about that to incentivize that reduction.

So we're encouraging conservation without Penalizing people for the kind of the basic necessity of water that they need to use.

That's the intention. Yes.

Thank you.

Councilor. I'll also chip in a little bit too, from an operational perspective, you guys see that graph, especially in the summertime. And so this structure is designed to address that in terms of our peak hour demand. in relation to the constraints we have with our water rights. And so without really getting into the weeds with that, but I've talked with you guys about it before, is that's where it becomes very problematic for us in terms of how we total against our annual use. And so the rate structure is also targeted at focusing on lowering that overall total throughout the year. So, yeah.

All right, so why don't we schedule a public hearing in August? on this, not the 11th, because that's going to be fireworks, so maybe the 25th.

Right, so, okay, so we'll do it the 25th. Do you want us to bring forward, you know, kind of what's sitting on the table, an implementation date of October 2027? rather than April with the idea that they would be getting information over the summer of what they would be paying given the water use if a tiered rate system was in place.

Of course, that would be what I would like to see. I'd like to see people see actually what the difference would be.

I think if we don't have the ability to go back and show here's your past use and what it would look like to accelerate that for an April, then I think October is the right choice to do because people will go, oh, I don't use that much water, and they'll be looking at their bills and looking at their bills without thinking about their raised garden beds and all the other things, the kids' swimming pool. So those things do add cost, and I think they have the benefit of knowing what that is.

Do we also have the capacity, could we do an informational letter to the two kind of the households that said basically for your trailing 12 months, this is kind of what the impact is gonna be so that they can actually see it laid out for a full 12 months on a single piece of paper in front of them or is that?

Oh, I'm sure we could send out a mailer. Yeah, just alerting the customers.

I think it would be good. It's one thing to kind of see it in your bill, and you're like, oh, I'm going to have to deal with that. And then you pay the bill, and then you put it down, and it gets buried under something else, and they never see it. But I think if you have a single piece of paper that says, for the year, this is what it's going to be month after month after month, it might light a fire under something else.

I'm not sure. That sounds like a lot of work.

That's what I'm asking. Are you asking, like, When are you thinking that mailer would go out? No, I know, but I want, so, right, as we all know, right, power companies, all this stuff now, everyone's got technology, so you can look back over the year and years of what you've paid. So you're thinking that we would provide that information as we begin to go forward with this so they can get a sense of the impact of their water use? But I'm still curious to when would they get this information before or after you make the decision? Okay. Okay. Okay. No, that helps me. Okay.

You're just talking about a heads up and formal letter stating, Hey, this is what you're going to start seeing on your bill. A hundred percent. Okay. Okay. Yeah.

Yeah.

I can ask that question to their billing collections manager, but so we have the ability to go back because we already report on a rolling 12 month. So we have the ability to go back, give them this information, implement it if you want it to in April, or you, you could wait. So you have both those options to get them info.

Okay, thank you. All right, so is the consensus October 27? Give a year that, okay, good. All right, so we'll do the public hearing on the 25th of August with that kind of option in mind. Thanks, Josh. So next we have a franchisee presentation on mitigation agreement by Ziply Fiber.

Good evening, Mr. Mayor, Council, James Wood, Finance Director. I'm going to introduce Zipley Fiber here for you. I'll leave the introductions to themselves.

If you guys want to sit at the table, if it's easier for both of you to talk. And then there's a button on the microphone. You'll see the red light come on. And I think, yeah, there you go.

Thank you so much Mayor Fitch for welcoming us to the city. We are pleased to be here to chat a little bit about what we've been up to and talk to you about some of the concerns that have been raised and how we're working with city staff to resolve those concerns. So I'm sure most of you are aware that Ziply Fiber is a fiber optic company and we are in the process of constructing a new fiber optic system here in Redmond. And next slide. And so we just have a couple slides here. I know that you've received a lot of this information before from other team members, but we just wanted to explain a little bit about who Ziply is and why we wanna be a community partner here in the city of Redmond. We wanna provide excellent service to your community and we hear from community members that they want options and they want a service that is reliable, redundant, consistent, and our goal is to provide that. We know that construction is the least favorite part of the process, but we're here to talk a little bit about that and hopefully continue to be a good community partner here in the city. Next slide. So we know that we want to build a system that is sustainable, scalable investment. It's a good investment for the city. We know that it builds economic value for the city. It raises home values within the city. And we know that it helps build out a system where you can have sustainable, reliable systems for schools, hospitals, community centers, business, and home life. Next slide. And we know it's great for your community members too. So we want to make sure that we increase that quality of life. Next slide.

I can take over from here. Nice to meet everybody. Again, thank you all for your time and allowing us to present. My name is Brandon Runyon. I'm the senior construction manager for all of Oregon except for, I would say, the Portland metro area down to Salem. This slide here is just a general overview of where we have built already starting in 2025 to today's date. And then we're in the future we're heading as well. I tried to make everything as color coded as possible to make things easy for everyone to decipher. The first thing that I would like to call out there that's probably the most identifiable would be the green pins and the yellow pins there. The green pins that we have placed would be the areas of town that we have already constructed that have been finished and closed out as complete. All of the yellow pins there, we're hopeful for some of those in the end of 2026, but most of those will be constructed in 2027 as part of our build plan. outside of that you'll see some lines on there that are color coded there's the blue line the orange line and then there is a lime green line kind of in the southwest corner of the city The blue line is our current goal to finish by the end of 2026, which will allow us to activate or light up all of those green pins that have already been constructed. Once those are lit up and completed, we anticipate for that to be around 3,000 homes that will have access to Ziply fiber service. With the remaining routes that need to be completed, the goal is by the end of 2027. There's kind of a graph in the bottom right. that shows by quarter what our plan is as far as designing permitting construction and then ready for sale is when we're ready to provide the service to the customer total finish by the end of 2027 we hope to have around 7 000 homes fully activated ready for service any questions on this slide

You have a little circle in the lower left-hand corner. What does that stand for?

That is where our feed starts from outside of town. So it's off Southwest Highland, kind of out there a couple miles. That's just where our service generates from. And then we have to construct from there going east into the city of Redmond to start lighting up all of those neighborhoods that we've built already. You're welcome. Next slide. So of course, as Katie touched on, the construction part is the least favorite part of everyone. It can get a little messy at times, unfortunately. I wish you could just wave a wand and the fire would be in the ground for everyone. That would make it easier. But this just kind of goes over some of the concerns that we've had reported. and kind of the overview of the build as well still. So currently, we've constructed about 200,000 feet of new fiber infrastructure between 2025 and 2026. And through that, we've had 157 reported concerns through our Ziply fiber portal. And the pie graph there kind of breaks it down a little more as far as what some of those concerns have been. The orange piece is mainly just communication, you know, concerned citizens want to know why is their paint on the ground? Why are these trucks in front of my house? You know, kind of what's going on here? And then the 85% would just be anything else that could happen during construction, whether that's impact to sprinklers, impact to sidewalks, landscaping, you name it. So of that, we've had 157 reports through our portal. And when you compare that to the homes that we've passed, it's about a 4% concern that's reported to Ziply. And then highlighted there is that the sprinkler systems has been our most common impact. The reason for that is a lot of construction happened during the winter time. Not a lot of folks have their irrigation on. It's kind of hard to locate those issues when it happens. Currently, we have all of our vendors, all of our contractors, excuse me, staffed and materialized with any type of irrigation system so they can repair it on the spot. We've instructed them to test it with the homeowner while they're there. And then if it's not found while we're there, generally those concerns are repaired within 48 hours or less to the irrigation system. So this is just kind of an example here, the construction feedback of our portal, how we get these concerns relayed to us. This link and QR codes are on our door hangers that we hang on homeowners' doors before the construction happens. So that way, if the construction crew has left, maybe the homeowner or property owner is at work, what have you, they can come home and have a place to reach out to us. These go into a database that we track internally. We have a whole team that tracks these. So as soon as one comes in, myself is made aware. It even goes to our vice president. And we get these out to our inspectors and construction project administrators immediately and try to have all of these as well resolved within 48 hours or less. So here's an example of just kind of the door hangers that we use. We have a very big motto, big push, call us, not the city. We know there's going to be impacts, unfortunately, in construction. Nothing ever goes off as planned all the time, right? But we also don't want to inundate your staff, you folks, with these complaints that we could handle easily. We don't want you guys getting calls in the middle of the night asking what's going on with my irrigation system when that's something that our inspectors, our field staff could handle immediately. And then here we have just another example of some of our signs. The one on the left there, we're building a better internet, is usually put along streets where there's major construction going on for an extended amount of time, just to help make the public aware, whether that's driving, walking, riding your bicycle through the neighborhood. We want everybody to know who it is, what we're doing. And then the door hangers, again, they are just a way to communicate with us and make sure you can find out exactly what's happening. Any questions on those slides that I've shared so far?

Nope, go ahead.

Great. So we do know that the community has reached out with concerns. We get most of those calls into our Ziply portal, but we're also aware that some of those calls came into the city. We find that there's four common themes that we hear through community questions and concerns here from Redmond. We hear questions about schedule, wanting to know When construction will begin and how long it will last. Those are common concerns of someone who might be experiencing construction. The public utility easement. This is a big one. A lot of people don't realize that it even exists. And so we do get questions wanting to better understand why we are putting fiber infrastructure in what they perceive to be their private property. And so a little bit of an opportunity for us to educate on what the public utility easement is and why it's being utilized. We get questions about restoration. We know that folks are concerned. They want to make sure that once we're done with construction that we are restoring it to the same status that it was before we were there. They don't want us to damage anything and they want to make sure that they're going to be made whole. They also reach out about accessing service. So when you saw that those calls that come in that aren't construction related, those are questions often about who is Ziply, what service do you provide, and then how do I sign up for service and when will it be available? So it gives us an opportunity to share with them some of the information that Brandon shared about timeline and when service will be available to the community.

So for clarification. Yeah. the numbers that you showed, you said that came through the portal, do those include or is it separate, the calls that we received and then we forwarded to the number that was provided to us? So is that number all encompassing of both of those?

Right, I think that questions that came in to us, we do our best to get them into the database so that they're tracked. It's possible there were some that were not tracked. We'll get to that in a future slide where we talk about how we're going to work together with the city to do a better job of tracking some of that information. But the goal is to keep track of it so that we can provide feedback to the city. We provide updates on how many complaints we get in on a weekly basis. But we want to make sure that we're able to give clearer data so that if there's an uptake or we see a trend in a specific issue such as sprinklers, we're able to communicate that more clearly.

So Katie, I'm going to take it back from you for just a second, then I'll give it right back.

Yeah.

The city has fielded a lot of complaints from Ziply over the last couple years and in response to that we went to the franchise agreement to see what types of recourse exist within the agreement. We could terminate the franchise, we could fine or we could work together and develop a mitigation plan that would allow Zipley to continue going forward to provide the service to the residents in a fashion, in a way that works better for our residents. And so I'm gonna get back over to Katie and what you're gonna hear about now is the mitigation plan that we developed together and both the city and Zipley would sign this agreement outlining kind of a new standard that exists with the city of Redmond in terms of delivering this product

and how construction activities go forward okay so before we go down the mitigation path um i do have concerns i know people reached out not just to the city but to the people they know in the city the counselors i had people on my own block that experienced landscape and sidewalk damage and it was not easily repaired and it was timely right and i have to different people who live near me that are wheelchair bound and can't go out and check their sprinkler heads and deal with their sod, and their sod is dead as of today. So there are things that are still ongoing. We have a gentleman who had his sewer line broken, and it looks like 10 of our city employees took out and fixed his sewer line. And he was kind enough to provide them with 10 gift cards. But that was certainly not something that I think Zipley could have fixed. It was a city sewer line that had been breached. So when we're talking mitigation and those types of things, I mean, one of the things I noticed personally for me was, yes, we got your tag on the door. Nobody out there spoke a language I speak. when i had to talk to somebody about my concerns there was nobody who could answer them i'm sure i wasn't the only one then when we're also talking about right-of-way and easement you know where it is you've got the engineering maps if you're giving notice to people why don't you just say the right-of-way is going to go 12 feet past here or 16 feet from the center of road Knowledge is power. It helps people understand that you will be digging in what they think is their private yard because most of the right-of-way in my neighborhood is in front of the sidewalk with the rest of the utilities, and you were behind it. So a lot of my neighbors were offended because they thought, why do I have a utility box now in my yard? So I think a little more communication.

Thank you.

All right, Katie, go ahead.

Thank you. Next slide, please. So we do want to talk about our mitigation plan. We have a lot of best practices in place that we find work well in communities, and we know that each community is different and unique, and so here in Redmond we've heard concerns and we want to be responsive to those concerns and put some additional measures in place to make sure that our construction is successful. So the first step, to your point, Councilor Zwicker, is an audit of existing conditions for for properties that have already been impacted by construction. We want to make sure that we look through all of those work zones and identify any areas that need additional attention for restoration work. Then we will focus on restoration, resolving any outstanding restoration needs, and we'll communicate back to the city the completion of that work. We wanna communicate clearly. So we utilize door tags and signage in order to make sure that we are communicating clearly with community members. This mitigation plan has additional measures built into it to help us make sure we're getting that information out multiple times because we know folks are busy. Sometimes they miss a door hanger or they drive by the sign and they've got a million things on their mind and they didn't pay attention to it, right? We're adding a mailer that will go out to residents who have been impacted by construction, and then a forward-looking mailer for those properties that are in our future construction build plan. We will continue to do the door hanger, which we put out a week in advance of construction. The goal with that being out before a locate paint goes down. We recognize that's often the time where people start noticing that something's happening. They see those locates in place and so we wanna make sure they know what's coming and who they can reach out to if they have questions. We've also built into the plan communication tool to leave door hangers when construction lasts longer than a day. So if restoration is gonna take longer, if there's a hard restoration on a sidewalk or a driveway and we need to come back, we'll leave a door hanger that says we'll be back and let them know a rough estimate as to when they can expect to see a Zipley crew back on their property completing that restoration work. And we wanna be accountable. So we work hard to make sure that we are responsive to complaints and that we're communicating clearly with the city, but we've built in additional measures to make sure we're tracking all those additional steps we're taking through photo verification, just to reinforce our ongoing commitment to the city and the community that we're here to be a strong partner. Are there any questions about that?

You mentioned audits. How often are these audits done?

So this audit will be a one time, we wanna start off on the right foot with this mitigation plan. So we will go out and audit the existing conditions of all the sites that have been impacted by previous Zipley construction so that we are in clear communication and agreement with the city as to what may require additional attention and also the work that's already been completed. So we will take photos of each of those properties in collaboration with the city and make sure that we all start off on the right foot.

And Katie, I can quickly add to that. It's gonna be an audit where Zipley and the City of Redmond both in tandem go around to each property.

So quick question, mostly landscaping oriented, but when going through some of the right of way,

roots of different plants and things were cut and so they're not going to die immediately but they're going to die later it just happens so this audit's not going to capture that is there any plan for oops that probably was due to and we will fix that for you yeah our um our franchise agreement actually we commit to guaranteeing that we are responsive to restoration concerns up to a year after construction so those sort of concerns we understand similar to the sprinkler heads that are sprinkler lines that were cut. People didn't know right away. We want to make things right. So someone reached out and it turns out that our construction damaged a tree or a plant and it didn't, to your point, die right away. We would want to be responsive and come back and work with that homeowner to make that right.

Catherine. Two questions. When you say the commitment to restoration and you talk about the flyers saying when they'll be back, one, is that going to proactively address the things that we know were damaged? For instance, we know someone's rose bush was dug up and then put back in. inappropriately or their driveway has been cut. Will there be a note section that says we are returning on this date to fix these items and here is a hotline phone number to call if something else is identified?

Sure. So the intent of the we'll be back door hanger is for there to be a spot for the crew to write we'll be back to perform restoration of the sidewalk or we'll be back to complete restoration of the landscaping a lot of that work we try to take care of right away that's the goal sometimes to your point something happens we need to go purchase a specific plant we need to come back and make hard restoration that's what we would utilize that door hanger and we would want to communicate with the homeowner sometimes they're not home when the construction is happening and they get home and why is there a cone in my yard you know they might not they might not know that zipli was there so we want to communicate that so that they understand we're going to come back we're going to finish that work we'll complete restoration the door hangers also include a qr code that takes them to our construction website that includes details about what to expect during zipli construction so that they understand it describes the public utility easement and where it commonly is on private property It talks about the common duration of construction, the types of construction that Ziply utilizes to put fiber in. So helping to arm folks with enough information that they can hopefully know what to expect when we come. But we also know that sometimes people don't scan those QR codes, they don't take the time to come to the website. So we provide our contact information so they can call into our hotline where a person answers. And if they don't have the answer for them, they can get them in contact with somebody on the Ziply team who can answer those questions for them right away.

Thank you for stating that, because I have an elder client base, and QR codes and anything technological is not what they do. Yes.

We know everybody's different, how they like to receive information and how they access that information. So we want to try to utilize a couple different tools in the toolbox to make sure that we're reaching as many people as possible. Thank you. Any other questions?

So that's one that you guys have worked out with Zipley?

Yes, that's correct. We were able to leverage an existing mitigation agreement with a different city, take that and then tailor it towards the city of Redmond and bring it to our standards and pass it around internally and we've bounced it back and forth with Zipley and I think we're at a spot now where We're going to be able to allow them to proceed in an orderly fashion, and we're going to have a positive response from the community, I hope.

Well, thank you for coming tonight. Go ahead, John.

I guess my question is a little more basic. I'm kind of struggling to... The slides are very impressive. The door hangers, all of the outreach, all of that stuff seems wonderful. Why was that not done before? So we are here today. Like we shouldn't have to be here today. We're here because we got feedback, the city staff got feedback that there were some real frustrations. And I guess my concern, it sounds like we've got, third party construction crews onsite doing this stuff. So this cannot conceivably be the first city that you've installed these utility lines in. So why are,

Why are we here? Sure. We had some of these communication tools in place and we know that there was room for improvement and that's where the mitigation plan comes in. My role as a local government relations manager for Ziply is a testament to Ziply's commitment to being a stronger partner out with municipalities. We didn't previously have my department and we're building out a team to help be liaisons to cities. to improve communication, to make sure that we're working with electeds and staff to be in close communication. I think part of this was communication breakdown between our teams and city staff and just making sure that we were on the same page as to what work was being completed, what those standards are, if there's complaints coming in that they're getting to Ziply so we can resolve them in a timely fashion. and that we're communicating back to the city that the work has been completed so that we can help close those loops, right? So we're looking for all those opportunities to improve. We do have third-party vendors that do our construction. I don't know, Brandon, if you want to add anything to that about how we work with our vendors on best standards.

Yeah, we constantly are working and coaching and training vendors. There's always room for improvement, and that's kind of the basis. Some of these communication were already in place. It's just clearly room for improvement, right? And some of these issues that have happened were from prior vendors that were not living up to the Ziply standard. And so because of the, even prior to this happening, this kind of explains why we got here. We kind of had a vendor previously just going a little rogue, And so since then, we've terminated all partnership with them. They weren't meeting the standard that you folks expect, that Zipoli expects. And so that's kind of my role at the company is to make sure that we have qualified individuals and making it easy for everybody. Like I pointed out in the slide before is we want to make it easy for everybody, not just for the city council here or the mayor. We want to make it easy for the homeowners as well. to make sure we don't have to get up here. And I think to Kat, you know, you made the point earlier, just more communication. I think I'm a big believer in over-communicating, and I just want to make sure that everyone has all the information moving forward. So I just want to be fully transparent with that.

So can we get your commitment, I guess, that you're going to make kind of the citizens who've already been impacted as well as any mitigation that needs to be done in the future, you're going to make folks whole?

That's the commitment. It's in our franchise agreement that we have to do that. Yes.

100%.

So as someone whose yard was impacted quite a bit by the project, I want to appreciate you guys coming back to get it fixed. And I'm glad it's going to be better. A project of this size, you've got to expect some issues. I'm really happy to see fiber coming into the community. I think it's going to be a game changer for the whole town. And so Godspeed with the rest of your project, and hopefully it goes great. Thank you.

Great, we wanna be a good partner too so we wanna encourage you to reach out if you have questions or we can provide updates however you best would like to receive that information. We'd like to keep you updated as much as possible.

Great, thank you very much. Yeah, I'd like to be a good partner. My phone is always open, email is always open. Even tell your folks if they can't reach anyone through the portal. You can get my contact information from James. We can share that with everybody. Just, again, want to make it as easy as possible for everyone. And my goal as a construction manager is to construct every bit of fiber with the least amount of city impact as possible. And safety is always number one, especially when we're talking the right-of-way, regarding traffic control, anything like that. Those are my goals and my commitments to your city is to construct as safe as possible.

Great. You guys have a great night's evening.

Thank you.

Thank you all. Appreciate your time.

Okay, next we have a bid award, and this is... Oh, no, we're not doing that one. Never mind. Yeah. So we're going to have a public hearing on Ordinance 2026-09, an ordinance amending the 2040 Redmond Comprehensive Plan, adopting the 2026 South Redmond Track Large Lot Industrial Infrastructure Master Plan, incorporation into the public facilities plan and a supporting plan to the Revenue Comprehensive Plan. This is the time scheduled for a public hearing regarding this legislative amendment to the 2040 Revenue Comprehensive Plan, file number 71126000113-PLNGTA. The following are the rules of order for this hearing. No person shall speak without first being recognized by the mayor and then coming forward and stating his or her full name and residence address for the record. No person shall be disorderly, abusive, or disruptive of the orderly conduct of the hearing. No person shall present irrelevant, immaterial, or unduly repetitious oral argument. The mayor and members of the council, with the approval of the mayor, officer, or employee of the city, may question any person who submits oral argument. The mayor may set time limits for this proceeding. If that is done, proponents and opponents will have equal time to present arguments. We don't need any for this one. So I'm going to open the public hearing and hear a report from staff.

All right, good evening, Mayor, members of the Council, members of the audience. Landon Stevens, Long Range Planner. I'll be given a brief introduction on this project as it relates to the planning and adoption process, and then I'll hand it off to Jessica with City Engineering for a more detailed explanation of the project. So this is a master plan titled the South Redmond Tract Large Lot Industrial Infrastructure Master Plan. There's no better acronym we tried, but that's the title of it. The plan focuses specifically on lands south of the fairgrounds and south of Juniper Golf Course with that large lot industrial zoning, acreages totaling approximately 789 acres. This master plan is a near 500 page document which details the public facility needs of this area specific to future development with an emphasis on transportation, water and wastewater. The planning process in which the adoption of this plan requires is a text amendment procedure. This document will act as a supporting document to both the public facilities plan as well as the city's comprehensive plan. Tonight is the second of two required public hearings for this land use item, with the first public hearing occurring on July 15th at the Planning Commission meeting. The action taken by the Planning Commission at that meeting was to unanimously forward a positive recommendation to Council. With that, I'll now hand it over to Public Works Director Jessica McClanahan for a deeper dive into the details of the plan, and I'll remain available for, should there be any questions on the procedural or planning side of things.

Good evening, Jessica McClanahan, Director of Public Works and City Engineer. Before I start presenting on this, I did want to remind everybody of why initially we started this effort actually about two years ago. And really the intent of starting this plan was to help assist the landowner and any potential developers to understand what infrastructure is needed to serve the site, to look at if there were any phasing opportunities to see if we could phase that needed infrastructure, and then ultimately to figure out if there were any gaps in needed infrastructure from a funding standpoint how we could work together in partnership to make this land really developable, knowing that there's advantages for the city, for the landowner, and for our community to develop this land. I also wanted to highlight that this plan is intended to work in conjunction with our other adopted master plans, so that would be our wastewater collection system master plan, our water master plan, and our transportation system plan. So as I walk through the different infrastructure types, you'll also see that I might be highlighting where some of those consistencies exist and how the intent of this plan is over time to remain consistent with those adopted larger city infrastructure master plans. I guess at the onset, too, I will also mention that as part of this, we worked with a technical advisory committee very closely in order to make sure we had all the right stakeholders at the table. That included the Department of State Lands, or DSL, whom I know is also in the audience here tonight, as well as Deschutes County, ODOT, Of course, the city and several members of you, I believe, are on that technical advisory committee. And then Redmond Economic Development, Inc., as well, from a development perspective. So, again, a really broad swath of stakeholders and outreach that got us to a point of understanding what's needed and how it could potentially be funded. So with that, I will actually dive into the presentation. To ground us with the land, the tract of land that we're talking about, we're looking south of the fairgrounds. DSL currently owns these plots of land that are shown. The first is about, in orange, is about 140 acres, and it's slated for a land swap with Deschutes County to expand the fairgrounds. The second is a 20-acre Oregon Military Department facility. And then the larger parcel of 789 acres is specifically slated for large lot industrial. And it's a regionally significant industrial site in the state. And this is what we were really looking at trying to figure out how to serve as part of this plan is this blue area. We looked at three main infrastructure types, those being transportation, wastewater and water. And over the next several slides, I'll walk through each of those discreetly and I'll pause in case there's any questions about each of those unique types. So starting with transportation, the first thing we did was look at growth assumptions for employment, and we used those employment values in order to try to generate traffic and trips that would be expected from this area. Our original TSP in 2020 had 1,000 employees in this area, and as we actually engaged with the technical advisory committee, we established reasonable targets of growth from anywhere from 6,500 employees to almost 10,000 employees. So because of that, there was a TSP amendment that really aligned to that growth. Out of that analysis and those new growth assumptions, several infrastructure projects came to the surface. Specific in this area, those projects are listed in the table, the first of which is a new roundabout at 19th, and airport way, a single-lane roundabout, I should say. It was estimated at $3 million and funded via SDCs. This project is currently being built or designed and will be built as part of the Eastside Arterial Project, so we are considering that a complete project from the standpoint of it's in process and will likely be complete prior to any development in that land. The second is the expansion of the Canal Boulevard U and 27th roundabout west of the interchange. That's also a $3 million expansion improvement funded via SDCs. And so a potential developer would not have any other offsite mitigations to account for that other than paying their per trip SDC. Improvements at 21st Street and Airport Way are also identified. There's safety and congestion concerns and proximity to both the existing U interchange and the railroad make it really challenging to come up with a solution other than access control. This is where I will note that the plan as written does specifically call out for a right in right out or essentially a concrete median in the center there of Airport Way to restrict those turning movements. However, council has the option tonight to adopt this plan with a modification of making the 21st and airport way improvements consistent with our TSP. And then council has the opportunity to amend the TSP. And again, that's where I was talking about the intent of the plans to be consistent, the master plans of this plan. And then looking into the future, an expansion of 19th and airport way roundabout would be needed as that growth continues. Again, we are actually trying to be forward thinking with our construction of the east side arterial and we'll be constructing two lanes for that. However, that second lane is not funded via our SDCs, and so developers would be expected to pay some sort of proportionate share based on the trips that they generate. And then finally, a really important component of the analysis of these higher employment rates was substantiating the need for a southern interchange. So this analysis and documents are that first building block and step that's needed in order to substantiate need to our partners at the state and others. So that's a rundown of what could be expected and needed for transportation and how it's proposed to be funded. Any questions?

I have one, a basic one, probably pretty simple for you. We're putting a roundabout in on 19th, UMA, one lane, and then it's going to be $3 million. covered by SDCs and then a little while later, who knows how long that is. We're going to spend another three million dollars to put another lane in there. Would it be cheaper just to build it in two lanes and then charge back to the developers when they build?

That is correct and that is exactly what we are planning to do, yes.

I should be an engineer. You should.

Okay, well then I will move on to wastewater. So the city recently adopted an updated collection system master plan last summer, and as part of that plan, we were also able to update our hydraulic model, which was great timing when it came to also this development area. Out of that plan, and again, in alignment with growth assumptions for this area, there are three off-site, if you will, or oversized projects wastewater infrastructure projects that are planned. The first is upsizing the pumps in the existing U lift station in order to just continue to utilize the wet well that's there but have bigger pumps to keep up with the updated flow. That's about $150,000. It's already programmed in our capital maintenance program and from the lens of what can developers expect, that's something that the city would be able to very quickly be able to implement for initial first users in. The second improvement needed is a complete upgrade or really an addition, expansion of that ULIFT station that's estimated at $3 million and is funded via SDCs with the recent council adoption of that updated SDC a few weeks ago. And then the third largest project of all would be the extension of our East Spruce Interceptor. Currently that terminates up near Franklin, an evergreen kind of area by Public Works, and it needs to traverse a couple miles south in order to reach 19th Street where the terminus of of the DSL pipes would be. That's a more long range solution. It ultimately serves that entire area. It's estimated at about $15 million. And again, with the recently updated SDC, wastewater SDCs, this project is funded via that mechanism. So from a wastewater standpoint, there are no offsite mitigations that are contemplated at this time. And that helps developers and landowners understand the value and the shovel readiness of the land. Are there any questions on wastewater? Okay. And then finally, we looked at water. And water is actually the infrastructure that gave us the most pause. Not only are we looking at some of the things in terms of our groundwater rights that Josh and others highlighted earlier this evening, But we also were looking at how to serve a whole range of different types of developments. And knowing that this area is industrial and manufacturing, fire flows are really the key piece in order to make sure that that can happen. And so in our existing system, if we assumed that the whole city were 100% built out, we really don't have a whole lot of leftover capacity to ensure that that fire flow is available on demand as needed. There are a series of improvements that help that. One is a fire booster station at kind of our zone boundaries which would basically boost pressure and give you that instantaneous fire flow demand. That's a pump station that's valued at approximately $5 million. And then the other two are additional large diameter looped connections that just help convey water more efficiently and again allow for that flow rate to happen consistently when and if it's needed. Similar to transportation and all other infrastructure types, we wanted to look at phasing because the reality is we're not at 100% built out in the city. So we have the opportunity today to borrow capacity that's not currently being used because land isn't at 100% development. So what we did is we looked through a phased approach of allowing a development to occur initially and we'll monitor over time to make sure though that development then does pay back so we can have infrastructure, those that pump station and the loop connections in place when we need it because we've reached closer to 100% build out in our UGB. So where that landed was a lot of robust conversations with the Department of State Lands on how to best phase that and how to best cover these costs, because really this was the infrastructure that had kind of the gap identified. And it was identified to split the financial burden between the city, the landowner, and any future potential developers. It was also then decided that it would make the most sense for the landowner, in this case the Department of State Lands, to have as much control as possible over extensions of those large loop systems. And so they are proposing to be responsible for the $10 million improvement, improvement number one, and that would account for both that developer and property owner portion. So those two thirds of the pie, and then the last third, the last 5 million, the city agreed to program funds for that fire booster station as well. The third improvement, which is a 16-inch water line running east-west under the railroad, under the highway, under the canal, big improvement, really may not be needed. It's kind of TBD-dependent on what kind of development actually happens. And so we did not program at this time any financial contributions towards that. As you can see in the table at the bottom there, there's typical usage types of development and what their water requirements what their water demand is. So for example, a warehouse or a distribution development, if it was a 50 acre site, they would use on average 25 gallons per minute. If the entire 789 acres were developed at warehouse distribution, that's about 395 gallons per minute. We have about 700 gallons per minute available if we install improvements number one and number two. So that would lend us to a blend of warehouse light and heavy industrial. And so that's the reason that we did not program that last improvement at this time. Are there any questions about water?

No. Thank you, Jessica.

Okay. Well, quickly, in summary, Landon touched on this, but we were at planning commission with a public hearing on July 15th, and they all recommended unanimous, recommended of approval. And then tonight, here we are at the council hearing, and then council can expect planning staff to be at the next council meeting, which is August 11th, to formally amend the annexation agreement that just incorporates this master plan and really makes it be the superseding document from previous agreements in the annexation document. So with that, I'm happy to answer any other overall questions, or I'll let you move on with the public hearing.

Okay. I don't see any questions, so thank you, Jessica. Thanks. And now is the time for any public testimony, and are you ready to roll? Sure. Come on, Jessica.

All right, can you hear me?

Yes.

Thank you, Mayor Fitch, council members. For the record, my name is Amber McKernan. I manage the real property program for the Department of State Lands. And this will be short and sweet. So I just want to express our gratitude to the city, first of all, for all the time, effort, and expenses that went into this master plan to get this project going and off the ground. On behalf of DSL, I'm here representing DSL as the landowner and want to verbally provide our support of the city approving this master plan for the South Redmond Track large lot industrial lands. That is a mouthful. We're looking forward to the master plan adoption and the future meeting on August 11th to updating our annexation agreement. And I'm just here to encourage the council to adopt this ordinance 2026-09.

Thank you, Amber. Any questions for Amber? Thank you very much. It's been a pleasure working with you the last few years. Yes. Any other public comment? If not, we'll close the public hearing. And what's the pleasure of the council?

I have a question for the city attorney. So if we wanted to make an amendment because of the median part, did we talk about how do we do that in this?

Yep. So basically it will be subject to that one change that this agreement will include changes to the TSP. And specifically it's Exhibit B, page 14, table 9, where it talks about the right in, right out. That table has a couple footnotes. We'll just footnote it that it's subject to the TSP.

Okay, thank you.

All right, so is there a motion for first and second reading?

I move to have a first and second reading of ordinance number 2026-09 by title only.

Second. Moved and seconded. Any further discussion? All those in favor signify by saying aye.

Aye.

City of Redmond, ordinance number 2026-09, an ordinance amending the 2040 Redmond Comprehensive Plan adopting the 2026 South Redmond Tract Large Lot Industrial Infrastructure Master Plan and incorporation into the Public Facilities Plan and as a supporting plan to the Redmond Comprehensive Plan. an ordinance amending the 2040 Redmond Comprehensive Plan adopting the 2026 South Redmond Tract Large Lot Industrial Infrastructure Master Plan and incorporation into the public facilities plan and as a supporting plan to the Redmond Comprehensive Plan.

Is there a motion to adopt?

I move to approve ordinance number 2026-9. Second.

Second. Moved and seconded. We'll have a roll call vote.

Councillor Evelyn. Yes. Mayor Fitch. Yes. Councillor Nielsen. Yes. Councillor Osborne. Yes. Councillor Patrick.

Yes.

Councillor Zwicker. Yes.

Thank you. Well, now for an interesting shift from a master plan for large lot industrial, the psilocybin ordinance. Who wants to do this?

All right, I will take this one. So this is coming to council for the third time. So this was originally approved six years ago. The state made the option available for cities to allow service centers for psilocybin treatment. And part of when they made that available to cities was to give the option for cities to opt out. And you could opt out in two ways. You could opt out for a two-year ban on service centers or a permanent ban. Redmond opted for a two-year ban. That went into effect. I don't have the date in front of me. The first one was approximately six years ago. Council approved the ban. It had to go to the voters who affirmed that ban. We came back two years later with a second two-year ban that was approved by council as well, referred to the voters and again approved. And so now we're coming back for the third installment of the same two-year ban on the service centers in Redmond, which would go into effect in 2027 for another two years. Does that make sense?

Yeah.

Once we draft the actual ballot title, this is the one that's kind of backwards. So a no vote would continue the ban. So it's actually voting not to end the ban.

All right. Now that brings back that memory of the weird vote. Okay. So I think on this one, do we have to have a public hearing? Yes. So I'll open the public hearing. Is there any comment from the public? Okay, seeing none, we'll go forward. And is there a motion to have a first and second reading by title only?

I got it. I move to have a first and second reading of Ordinance 2026-10 by title only.

I'll second.

Wouldn't second any further discussion. All those in favor signify by saying aye. Aye. Okay.

All right, City of Redmond ordinance number 2026-10, an ordinance declaring a temporary ban on psilocybin service centers, an ordinance declaring a temporary ban on psilocybin service centers.

Okay, we'll have a roll call vote. Oh, I'm sorry. Is there a motion to approve?

Hold on. I move to have a first and second reading of, whoops. Is that right? Yes, I can't see it. I'm sorry.

I move to approve ordinance number 2026 dash 10 Second wouldn't second now.

We'll do a roll call vote Yes No Yes, yes Yes, yes Okay, next we're going to move on to action items. The first is Resolution 2026-16, a resolution of the Revenue City Council declaring a temporary ban on psilocybin service centers.

And this essentially has the same effect. There's an ordinance and a resolution to do the same thing.

So it's just a motion to approve the resolution? It is, Greg. Is there a motion to approve Resolution 2026-16?

I move to adopt Resolution 2026-16.

I would like to actually just add a comment.

I think that it made sense six years ago to say we want to pause, we want to collect more data, we want to see what psilocybin actually does, what effect it has on the community. I continue to hear from veterans and folks who struggle with PTSD that this is a tool that if properly used under medical supervision, which these service centers do, that it is beneficial and helpful to them. And I don't think it is in the city's best interest to just simply rubber stamp this moving forward for yet another two-year ban without having some kind of discussion or bringing up some kind of expert's pro and con on it. And for that reason, I will be voting no.

Okay. Any other further discussion?

I'm just going to add for the record for me, this is actually opening it up to the people to vote. We put it out there and they have the opportunity to say, I'm going to vote yes because I do want psilocybin in Redmond. So I think we are giving them choice and we are giving them the vote. To do nothing means we've all agreed that we want it. That would be the only difference, which I do not. But I think this does open it up to the choice of the community.

Okay. So all those in favor of Resolution 2026-16, say aye. Aye. Opposed? Nay. Okay. Resolution 202615 is a resolution declaring certain territory at 2729 Northwest Hemlock Avenue as being annexed to and incorporated within the City of Redmond. Kyle.

All right. Good evening, Mayor and Council. Kyle Roberts, Planning Director for the City of Redmond. As the mayor just mentioned, this is a resolution. This one's a little unique in that typically when you see an annexation, it's petitioned by the property owner. This one's unique in that the city is looking to basically initiate the annexation on this property. It's located there, indicated with the yellow arrow. It's at 2729 Northwest Hemlock Avenue. It's about 11 acres in size. It is wholly surrounded by the city, so that means right now it's zoned urban holding 10 zone, which is a county zone that the city administers and it's a pretty restrictive zone in that you can't subdivide because it's a 10 acre lot minimum. Also in terms of uses, it's really restrictive on what sorts of things you can develop on the property. So should the city council approve the annexation, this parcel would come into the city and be zoned a high density residential zone, which would then open up a lot more potential for developing that property. On site is an existing dwelling. There's an outbuilding and there is a cell tower. As I mentioned, this is what we call an island annexation. And so per state law, state law authorizes the city to initiate an annexation on this property without the consent of the property owner. However, we do need to hold a public hearing. Also, we need to notify the property owner of the city's intention, which we did do. We sent a certified letter back on July 13th. We did not receive any comment. But some other things about this property, the dwelling on the property, it's uninhabitable. The outbuilding is in a state of disrepair. And strategically, if you look at the property, the graphic there shows in the red lines, those are our arterial streets and the orange is our collector. So the property, or sorry, the, The dashed line there indicated by the highlighted yellow, that's the segment of Northwest 27th Street that's missing. So should we annex this piece of property, that kind of unlocks basically the potential to build that segment of street there, which would... be a major enhancement to our transportation system in that part of town. Lastly, I just want to mention, again, the property is in the county. However, the city is in charge of basically fielding code compliance calls for this property. And over the past year, we've received three to five. We get complaints from citizens on it. Even though it is in the county, within the last year, there's been 12 calls for service to the County Sheriff's Office for criminal mischief and three of those have actually been I think our police staff had an involvement in those calls as well so in closing I'll just show some photos of the existing conditions on site. Again, that house there on the left photo, that's uninhabitable, it's boarded up, and then there's the outbuilding on the graphic there on the right that's partially destroyed. And then also, within the property, there's debris, so you see there's some tires there and whatnot, and then, of course, abandoned vehicles. With that, I think I will take any questions. And again, it is a public hearing, so.

Any questions regarding this? Otherwise, is there a motion to approve this resolution 2026-16?

Mayor, did you want to see if there's anyone for a public comment?

Is there anyone here on this resolution? No, I don't think it calls for a formal public hearing, but we'll have public comment.

Okay.

I don't think there's anyone here on this, so. We can go forward with a motion.

I move to approve resolution 2026-15. I second.

Who didn't second? Any further discussion? All those in favor signify by saying aye. Aye. Thank you, Kyle. Next, we have an amendment to task order number 10 to city contract 2020-59 with Morrison and Merrilee. Increasing the contract by 121,800 to redesign aspects of the Redmond Airport quick turnaround facility project.

Thank you, Mayor. Thank you, Councilors. Leif Anderson, Redmond Airport. Thank you, Mayor. Thank you, Councilors. Leif Anderson, Redmond Airport. Yeah, this is a task order amendment to task order 10 with Morrison and Merrilee adding a potential $121,800 to an existing task order. Post COVID, we've redesigned the QTA and we're looking to get that built here pretty quick. We've got Morrison and Merrilee on the job for our design side, and then we've hired Skanska as a CMGC contractor to build it. They're under contract at this point. And in looking at the design, Skanska had some helpful value engineering potential solutions to modify the design in certain ways. And those design modifications we want Morrison-Merrily to execute, which is the subject of this amendment here. We expect potentially savings of in excess of $1 million, $1,060,000 potentially coming out of this redesign through the drawing package. So we're asking for council's approval to amend that contract to potentially save up to a million dollars on the ultimate construction build out.

Thanks, Steve. Any questions? If not, is there a motion to approve?

I move to approve an amendment to task order number 10 to city contract number 2020-59 with MMI for engineering, redesign, and construction administrative services for the quick turnaround facility in the amount of $121,800 and authorize the city manager to sign the amendment.

Second. Moved and seconded. Any further discussion? All those in favor signify by saying aye. Aye. Lee, if you know... I'm gonna forget what Zach even looks like, you're around so much.

Yeah, it's been fun hanging out for a few days. Thank you, Mayor.

Okay, next we have a modification of the Greater Redmond Enterprise Zone Program to increase extended abatement for 10 years. Steve.

Good evening, Mayor and Councillors. Steve Curley, Director of Redmond Economic Development. So the As a reminder, the Greater Redmond Area Enterprise Zone allows tax abatements on personal and real property from three to five years. The three years is based on job creation, but it's an outright available. The four to five years require council approval for those. uh in the last legislative session house bill 4084 allowed enterprise zone extensions up to 10 years those extensions would include a project needing to demonstrate that it involves substantial capital investment Regional economic impact or alignment with local development goals, so they would still come before Council to be approved this just gives us Flexibility with a tool that we already have for more significant projects as a reminder the Greater Redmond Area Enterprise Zone Zone sponsors include the City of Redmond City of Sisters and Deschutes County And with that I would take any questions

Any questions on this? If not, do we have a motion? I have a question. Oh, I'm sorry. Go ahead, Kathy.

How does it affect our ability to be competitive in attracting businesses if we do not have an enterprise zone?

It would be very... difficult to attract businesses without the general enterprise zone program. It is a statewide program. There's 78, I believe zones across the state. This gives a company an opportunity as they invest to not have to pay tax on investment, obviously. So without this program, it does hamper. It's one of the fuel tools that we have in economic development in Oregon. to help incentivize companies to invest here. So it is significant.

Thank you.

Okay, do we have a motion?

I move to adopt Resolution 2026-17, allowing the use of the enterprise zone extended 10 years abatement options as an economic development tool. A second.

A second.

Wouldn't second a fair discussion. All those in favor signify by saying aye. Aye. OK. Thank you, Steve. Is there any public comment tonight? Seeing none, we'll go to Keith.

Sure, and I just have three things. So with the psilocybin vote, it comes back for a second reading on August 11th because it wasn't unanimous, just so everyone knows. That's also the next time you meet. And then the other announcement is next Tuesday is National Night Out in Centennial Park, which is kind of a celebration of kind of community policing and giving another chance somewhat similar to the 250th celebration to see what the police department does have food entertainment snow cones canines attacking policemen in the park so 6 to 8 p.m. should be fun and any one of you there's always spaces

Okay, John, I'll start with you.

Yeah, I just want to make a quick comment on my vote for the SIL assignment. I don't know how I feel about it, but I would like to hear more discussion. I would like to hear more data from experts on it. And I do think that it is, considering the amount of attention that we paid to dispensaries before we did put that out, I would like to see a little bit more attention to see this. And I don't dispute anybody's like or dislike of it. I just want to learn more about it so that we can make an educated decision.

No, I don't have anything. Jay?

Okay, so I do have one thing. I talked to Keith about this, but I think we should consider banning data centers in Redmond. We don't have the water, we don't have the power. Before any genie is open, if we don't have it banned in our zoning, I think that's something we should do.

I would support that conversation.

That's a good conversation.

I agree.

Okay, so Kyle, can you check and see what we need to do on that?

All right, so we're adjourned.