City Council - Regular Meeting

Mr. Facebook.

Okay. more and more skills, but it was only

very good. That's first. Oh, there we go. All right. April stand. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Thank call please. Here.

Councelor Bashard here. Councelor Reynolds here. Mayor Buris here. Councelor Sanduski here. Councelor Christ here. Councelor Offer here. All right. Thank you. Now we have public comment section for other than public hearings. Any person may address the council after being recognized by myself. However, topics which are under appeal or legal in nature cannot be addressed. Please state your name and address for the record. Time is limited to 3 minutes per person. Anybody have anything to talk about?

Go ahead. Dan Dan resident 515 Avenue. Will there be an opportunity to discuss the right? Yes. We can do it. It's not technically a public hearing, but we're going to open it up as a public hearing. So, you can talk about it now or you can wait till we get to that part. You can

see Do we have anybody online? No. Do you have any announcements? The only thing I have is uh we do have a lot on the agenda. So, we're going to keep it back to uh raising your hand to be recognized to speak uh for either council for uh counselors and republic. So, even if you want to respond, let's just raise your hand and that way get my attention so that way we can keep it precise and moving along. So, all right. Any presentations you have next. All right, moving on. Now the new business resolution number R 2026- 009 request to approve and adopt resolution ratifying collective bargaining agreement with the city of Tel and the city police association. Okay. So, this is a big deal in my opinion because uh we our CBA with the Soma Police Officers Association um expired last July. Um we had to delay on um entering into negotiations with them because the association chose to uh leave the teamsters union and join the external order of police union um as their association. Um which meant that we could not even open the negotiations till July 1st. Um when I got into the CDA um frankly the thing was a mess and it was hard to read. There were things in different spots. So I undertook a with the association's uh permission we undertook

a a process to basically rewrite it from top to bottom. um which 85% of the stuff remained the same but a lot of the the stuff that we did to to fix it um does um did get changed and a lot of the stuff just got moved to different parts just to make it more readable to the end user. Um, one of the things that we did uh want to highlight is that this contract emphasizes cost predictability. Um, meaning that no longer do we have um in a pay scale that lists a a number and then later in the contract five different places that include incentives that we don't know who's getting or who's what or what that total number would be. Um what we one of the things that we did is we reinstated or instated a set pay scale where you can look at your years of experience is the the step and what your position is on the lane and know exactly what your salary would be. the there's no colas involved in this because the increases that would be on a cola are as you move from step to step along the progression there's a raise there. So what the officers negotiate is that they wanted a a defined way that they get their raise if you will every year and so that way they're not double dipping. Plus, we had some officers that uh were getting multiple incentives that maybe they shouldn't have been. Um, and so this eliminated, one of the things we did is eliminate the the double dipping on incentives. We also um agreed to um a change in health insurance um that um the the insurance program that they're moving to is a little bit less expensive

for the city, but they are agreeing to pay um into that where they haven't before. Um it it follows the scheduling and uh that we've been doing since uh uh I've been here and also changes some of the disciplinary processes uh to match state law um which governs anyway um and then to allow um uh administration and the city to u maintain records. Um, one of the provisions in the old uh agreement was that officers if they had a write up or a disciplinary action in their file, their personnel file, they could come in after one year and have that completely removed. And so we couldn't have a record of discipline actions which made it very very difficult to do increasing stepped uh uh discipline because we didn't have a record on it. So um that changed in there as well. This is a basically you're an up and down vote. You the council authorized me to negotiate this contract. We've negotiated the the Toma Police Association has has ratified it. It just needs the council ratification. If there's stuff that you don't understand or you want to discuss or certain provisions, theoretically we can go back, but everything agreed to be someone negotiating in bad faith. But um if there are particular negotiating points that you want to talk about, I would recommend that we uh pause on that and bring it to where we can have our legal counsel Mark Holtz from local government law group who worked with us on negotiations as well. So, um we're just glad to have this done. Um it is a two-year contract that is backdated to last July, which means we'll be opening it back up again the first year. So,

anybody have any questions, comments? Uh, a couple questions. Um, there's a reason why we set it on a two-year instead of It was the association's choice. I I was, you know, was sitting for a three-year. What was the last contract? Was that a It was a three-year. A threeear. I think the decision was um they wanted to get it to two years to help get to a resolution um knowing that it would open up sooner and would keep them on the three-ear schedule because we basically lost a year in the negotiations.

Oh, what's the county doing? So, under FSLA um federal standards laws, um you have to pay overtime at certain rates because of the um way that we are scheduling under the uh 12-hour shifts um in order to not have to pay overtime benefits. It's basically a vacation day that gets scheduled in on a regular rotation that they can take in lie of us paying them an extra ship over time. So it's like flex time essentially. Yes. But they have to take it all at once and it's built into the schedule.

Okay. And then um in l of the pas there's just a step process and that's based on cumulative years. Yes. So is there a bottom step or is it never ending depending upon how many years they have? What do you mean? Uh do the steps bottom out? So you start step one your first year and this is step 30 32 years on step

no once you hit step 10 um and we included this in your packet. Once you hit step 10 it moves on a fiveyear schedule. So once you hit um and then step 13 goes to 30 years. So anything above that just Okay,

you're done. Uh just a couple things. One says this is just a concern. Uh and the second page says the contract will create an increase in general fund expenditures for police department. I just read that in there. Okay. How much is that? What's the increase?

Um, we don't know the exact amounts yet because we haven't got bills from their insurance to know exactly where the insurance going on. What we are counting on here is that there is a decrease in insurance is what we've been told, but we haven't seen the actual final bill yet. Um, and then the the increases as they got raises um as part of this contract. So, we think, but we're hoping to offset that a little bit. So we don't know the exact number of what that impact would be. What I can say is that the salaries that you see there are the salaries that we don't change the scale next year because of a toll or

I was just addressing that because the one of the concerns I had I know I'm new um is we have that gap in the morning with no cover and this this is going to cost more and we're still going to have a gap in the morning. We are and one of the things that we talked about with the officers was or with the association, right? We didn't talk with all the officers was that the increased cost of this would mean that we would not be able to backfill one of the two open positions. And so when they talk about being overworked and not being able to fill that, the reason we're not able to fill that is they wanted more pay for the people that were existing there. It was their choice. We tried to talk them out of it, but that's the way they wanted to go. So,

I was thinking for a long public opinion. Yeah, I get it. I haven't been on too long. I heard about that. That's that's a real concern to people who live in the city that there's this sense of like we don't do the old west anymore. So, what is So, you don't know the actual cost increase? I mean, do you have a or do you are you being careful not to throw a ballpark out there or Yes, I I'm being extremely careful. What if this turns into 15 20% increase? How will we know? I mean, this is I'm not trying to be negative. No, no, no. I I get it. Council, we just roll the dice and hope it all comes together.

No, we've got some preliminary numbers. We we think we've we've got it there. Um everything we've done is with our finance director to make sure that we can fit with what our existing structure is, what proposed revenues were viewed, the budget. Okay. We think that this fits within our general budget that we will be proposing next year and we're taking this into account. We've actually had to wait on James had to wait on preparing some of the budget until this gets ratified. So if there is concerns on this, this does affect the larger budget picture.

I mean I think my concern is everything we talked about. I mean I I have across four pages and I'm not much for a stand. um you know and then not having the cost projections for me is I just don't feel like I can prove to go all that positive. So uh you know I I would I would assume it's retro to beginning of the year and it's not going to cost the officers if I were to be able to have uh for their time to review 44 pages of CPA and have a cost projection that by the time insurance back. So that's my advice.

Is there a time frame when you can get us a cost projection?

Well, this year it technically fits in the budget. Um, we lost an officer back in August. So with the loss of that officer, we're good this year for this fiscal year. Next fiscal year. And you'll see when you guys get your budget, we're getting drop numbers again from the state. Everything is depleting. So with that, they're still fitting within the budget. We're just not going to be able to afford to fill that one officer that left in July. We'll still be down one officer. It doesn't matter. I mean, as far as their races go, they're not a huge impact. Their insurance is definitely going down. I would say budget-wise from like this year to like this year to next year is like a $40,000 difference. And that's with insurance. That's with everything. workers complex with everything you can think of

but one less person but one less person because one person that's big you look at so you look at an average salary say ballpark $75,000 that person actually costs 150,000 by the time you pay everything out so it's a lot of money my point is it's 40,000 more but one less office two 180 200 whatever yeah but we're also able to save a little bit with the new officer coming on as well because which is a one versus Irene like a nine or a 10, you know, on the level. So, but it is ahead.

But it is important to note that they they they wanted this their union negotiated to not have the extra officer exchange. We were very clear to them on multiple occasions that that what they were asking for and what the consequence of that would be from the state's perspective. How long have we been an officer down? This is July July, August of last year. Coming up on a year. And honestly, like even if the contract didn't change and we just went up to a normal spot, they're still going to be in the hole. We probably still wouldn't have been able to afford this next office or the way the revenues are right now. That's just straight across the board.

Well, just a quick comment. Um having just finished the negotiation what's up on a different aspect I'm like trust staff and the association that they have come to an agreement and stand out support by well I second council that I have experience in negotiating contracts and I trust the staff and the union their agreement is going to be approved by council. agree with. Well, any other special

that no I so I asked the question, can you ballark it? Sounds like you ballarked it already. I just threw a wild number out there. Pretty close. Really close. And I'm looking at like this year's budget. I budget the budget right now for this next year. Yeah, you already have numbers behind you there. Yeah, I've got it. Let's just say my draft is balanced minus that off. Okay. So, I'm making a motion then that we approve resolution number R2026-09.

Got it. John got it. John got second. Hey, was there any further discussion? Question questions at all. All those in favor signify by saying I. I. Opposed. I. All right. Motion passes. 521. You got that? We will have that uh signed and delivered tomorrow. Okay. We're very happy. I'm sure the officers would be excited for that.

Okay. Thank you. All right. Moving on to uh legislative. So public hearing considering public comment on proposed city utility rate increases. Now is your chance to come up to the podium for this station. Again 515. So um the rate increases. My understanding is you have millions of dollars repair due to a sewer system. Right. Right. And you're planning on doing it all off revenue bond. Why not do it's added between rates? Rates.

Well, you're going to have to borrow money. So, either you're going to do it off bond or a revenue bond. So, you're going to put it all on future rates. What I'm saying? That's the proposal.

I have not considered geo bonds as well. You'll get a better rate for a geo bond, USDA rural development, uh, SRF fund funding for DDQ, state revolving fund. The reason I say this, I don't know who some of you know who I am. I'm the superintendent of the DTOR Oceanside Sanitary District and we've I've done $35 million upgrades in the last 28 years. So, I think that um what I've heard is that the council is concerned that a um a bond for property taxes would would be voted down. And you're probably about 90% correct. But if you do like we did, you have a choice. Give the a freight payers a choice. You you have to fix it. There's no denying the sewer system has to be repaired. I don't deny that. But we should have the option whether we want to put it on our property tax and not on our monthly user rate. So I think given a choice and present it to the public as such, we have to do it. These are your two choices. Okay. I certainly would vote for general obligation bond. It's worked well for us. It's kept control of our user rates and allowed us to have the funding to operate, you know, the day that you got personnel, you've got all the stuff that goes along with operating a publicity,

right?

So is and I think I read it was like $47 million worth of approximate are you planning on doing that in stages like 10 or $15 million at a time. So, USDA because it's a collection system especially, you can get 30-year funding and the GL and the market is cheaper on interest than a regular loan. So, sewer systems, collection systems, they're good for 50 years. Okay? So, it's not like a road where you go and you get a bond or something and it's good for five years and the road needs repair. Okay? You can get that kind of life out of it. Does this include collection and pump stations? Lift stations? Yeah, it does. Both. Yeah.

We're building a new lift station right now out there. It's about $1.2 million to build the station to service about 25 to 30 homes. Just so you kind of know what it is. It depends on if it's a duplex, 3lex, 4plex, pump station. Um, I think it would be a cost savings. I certainly would like to see the council look at both options, check out those funding sources, but a bond would be cheaper on interest and you get a longer term and you should be able to pay it off before you have to do any major overall. Thank you.

Questions, let me ask you questions or you want a picture or anyway. So, I've got to do all this. So help me understand what are the two different kind of bonds you're just referring to and what's the what's the I mean can you define those two different kind of bonds that you're speaking de I have prepared to go over all of this. Okay. So if if if my pleasure if we can wait to answer some of the questions I will go over the details of all that and the research that we've all done on on this. All these questions should be answered for everybody and if they're not I would invite uh uh Mr. tomorrow to come up. I apologize to come up again after questions.

Very good. Sounds good. Thank you. Thank you. Anybody else? Only one. Anybody online? No. All right. Well, then next go ahead with your information. So just a point of order uh mayor we have teed up tonight

three pending business or two pending business things one is on water rates uh for the agenda we've done water rates we put that first on the agenda do you want to talk about that first or would you like or would the council like us to rearrange that to talk about sewer since the sewer has been brought up let's do that let's do sewer first since we're talking about it can we do that easily we just have to Move to the agenda. Consensus or an actual motion. Any consensus? Consensus agend. Okay, let's do that.

And at the mayor's pleasure, I will go into some of this stuff. Just so the public is clear, we don't enter into any of these decisions lightly at all. These are very important discussions for all of our residents and this is stuff that we don't want to uh have anybody think that we are coming at this willy-nilly. Um some background um over the past year the city has worked with consour engineers to develop a wastewater system master plan. Um the master plan included a uh project list or capital project uh list that included projects to be completed over the next 25 plus years. The total value that they put on these projects was $75 million with $45 million in projects over the next 25 years. Um a lot of that comes in um a little bit frontloaded but uh the projects are spaced out so that we can do exactly as you said and get addition bonds for different prices as we go on because bonds are generally project based. There are two types of bonds in the world. First is a general obligation bond which uh the voters vote on and goes on uh to do your property taxes. Traditionally, a general obligation bond is used by cities for things that are not revenue generated. Uh think city hall or a park. Uh stuff like that. Things that they the people and the residents want to have part of that. They can be used for infrastructure but traditionally they are not. Uh general obligation bonds are the gold standard of bonds and exactly correct you do get a lower interest rate because they are

backed by property taxes and the property taxes are such that the bonding companies and the banks that lend the money like that because it's a guaranteed source of revenue. Okay. So with that, the current bond market for uh general obligation bonds, interest rates are hovering between four and 5%. Um over the past week, I have talked with three different uh bonding agencies um that do this every day um and given them some of the parameters of what we're looking at. The biggest problem that we have is that our funds are so depleted that we cannot even qualify for certain things like that. And even with the general obligation bond, we would have to raise rates to meet the debt service. Let me explain what I mean. Typical time frame is at least a year to get it in. um talking with some bond people um we found out that the cost of a campaign is approximately $50,000 and what you do is you ask for the maximum authority to borrow um of a certain amount of money within the IRS regulations that amount to borrow has to be spent within 3 years to keep the tax-free bonds which is what the bond people are what the bond investors are looking for. They want those taxfree bonds because it gives them a ride off on their taxes or a a credit on their taxes. Um the bond companies and banks and the bond council that you will hire generally take 1% of whatever bond number you're uh looking at. Um, one of the, uh, folks I talked to today um, recently did a bond here in Oregon, a general obligation bond that was for $40 million over 20 years, and they were

given a 5% interest rate. The debt service on that is u $2.9 million per year. If we were to do a $20 million bond, your debt service would be roughly half of that or the half the price. Remember, $20 million over 30 years, you are um locked into that for the 30 years and it would limit our ability to bond for future bids. That said, um the tax rate that I was given, the the way the tax rate is calculated is you take your exact um the assessor's office gives a total assessed value of what the real property value is. And if you'll give me just a second, I we we like to deal with real numbers here. So, let me pull up what the real number is for Tamuk City. Uh as of 2025, the Tilman County Assessor tells us that our real property value is total for the city is $979,137,118. Now that's the real profit. What we are able to borrow against is the assessed value. When our assessed value is 536,157,875, our tax rate for that is 1.8021. What that means is that for every,000 of taxable value, you're laughing at me, council.

No, I don't I don't know.

Okay. Um, for every,000 of taxable value, you multiply that by 1.8021 and that gets what? property tax that goes to the city is based on the valuation that I was given today. Um, a valuation to cover uh $2.9 million at a $40 million bond rate would be $541 per,000 of assessed value. That equates to on a $300,000 home approximately between $13 and $1,500 per year for that bond. Now, we would get through that with tranches. We wouldn't be taking the entire $40 million all at once, but we would go through separate tranches of that to work on project specific things. But the the ask of the voters would be for whatever number 40 20 whatever we need to get through over the the lifespan of that. But the end result is still the same. The tax value is between 13 and $1,500 per year. Some back of math based on our highest rate that we have and the rate increases that are proposed. If we were to take the the 40% increase with this year and propose 14 or 12 plus 12 1/2 for the next 2 years and then tie it to CPI over the next 30 years, the lifespan of that same bond term, the total cost per year to the end consumer is less than $800. So, if you're just looking at a cost for the consumer, for the rate payer,

$800 per year in rate revenue because of rate increases and or $1,300 per property tax increase. Now, people can have their choice on that. That said, even with a because our rates have not been addressed in so long that even with a general obligation bond, we would still have to raise rates to meet the operational costs of the system, our operational costs are being subsidized and we are going in the red the last few years because of the emergency repairs that we've had to make. A rate increase would allow us to stabilize the fund, which has to happen anyway for us to meet our obligations. But then we can go to a revenue bond. Now, these don't get the the nicest interest rates. They're still lower than direct lending, but we can get a revenue bond based on the revenue because the council can control that. Um the banks are still willing to to loan money to us. the debt service on any loan is going to be about the same. We've talked to direct lenders. We've talked to uh bond council. We've talked to bonding companies. The message is still the same. No matter what we do, we would have to raise rates almost as much as we are in order to meet the debt obligation that a bond would provide. with the rate increase that is proposed. Remember, we're not looking to go out and do a bond tomorrow, even a revenue bond tomorrow. The the first year of this revenue increase, is to stabilize the fund so that we can get the money that we need to spend on going out to do the bond council and do the bond stuff later on. So, that's my spill on that. We have

teed this up um for um the council to make an option. You have one option for sewer rates alone. You have the option of per the the experts and and consort and what has been presented a 30% increase with two 14.5% increases to follow or a 40% increase with two 12% increases to follow. Based on our water conversation last year, I don't believe that the council is going to be interested in anything longer than three years. And staff is okay if you only want to do one year or two years or anything in between. All we are asking is that you choose one. If you'd rather rip the bandaid off and go a 40%, we can do that. If you'd like to do 30%, we can do that. We just want to know what the council is willing to do. Were there any questions about the bonding process or the information as I presented it tonight?

Couple thoughts. One, uh, oh, sorry about that, man. Go ahead. I forgot. We're trying to uh revenue bond. Is that required by the other people as well? No. Revenue bonds can be issued by the city council as represented. Is there uh and I know this is meant as no insult. It's just truly just a question of how it goes. How do we know this dough ends up in how does this money is it sidelined into a special account? So even maintained so that it doesn't get sorted and away through other oh no we we broke something.

So sewer is an enterprise fund. If you were to go to a general obligation bond um and take that to the voters that money is siloed for that purpose in that enterprise fund. We can't take it and spend it on general fund or anything. We also can't use it for general maintenance. Bonds are generally limited in infrastructure only, not on ongoing operations and and stuff. So you have to remember it's just for the pipe in the ground, not for supplies. And even with the rate increase, because it's an enterprise fund, it is siloed within that that

that's what I was asking. So So we say, okay, let's do 30, let's do 40% of it. That money is is earmarked strictly to fix the sewer system. Yes, sir. Not even not even day-to-day maintenance of the sewers. No rates can go to day-to-day maintenance. It's the general obligation block or not.

Yeah. I just wanted I'm asking because just know how how that can happen. Well, if if we get our figures in the cookie jar because we got a bust of pipe out here. Uh that's great. And then it becomes comfortable and and then all of a sudden we get around. Hey, now it's really time to build station. Oh, you know, inflation something to come with us. That's an insert and I don't and I don't know the process. That's why I'm asking is it in how is the bookkeeping going on this? Yeah, that's what that's exactly what you should be asking.

Okay. clarity on this current resolution will the money be put into the sewer fund as an enterprise just as the part of the enterprise fund would have an extra dedicated. So the rate increase it would just go into the sewer fund as as the enterprise fund has all our rates. But all those are are segregated just for sewer. We don't we don't use those for any other functions.

Can you explain how you got to a math of 962 versus 800 over the life of if interest rates in the GR are lower and based on consentation that math doesn't math. Okay, we we would love to do that. That um be poured out here. Just real quick on the consentation by year 10 residential rate will be $231 per month where it's currently 92 about $148 per month. That's by year 10. So by year 20 at 3.5 3.7% a year.

I I didn't do the the spreadsheet. What we're looking at is a final monthly rate of 157 which is an increase of about $65 per month. Multiply that by 12. What's that? By year three.

Yeah. And then we add then we added the percentage but I can't guarantee what those will be until we've adopted those and we don't know what CPI will be on through that. We took a an a a average of 3 and a half%. Um but I didn't but an average of 3% I guess if we're doing an office now really struggling here. If we're a 20 year or a 30-year bond, we will need to calculate what the rates would be in 20 or 30 years or three. And based on consultation, it goes 30 14.5 14.5 95956 3536 3636. And sure, they can change.

I'll trust cons.

Yeah. I mean, we're at $148 increase by 2036. I mean that's 148 that's 1,500 or more at this year and then you have another 10 years to compound whatever CPI is on top of that. So if I'm looking at a general allocation loan that's at a lower interest rate. Yes, it seems like a lot of money. That would be the highest tax rate on my tax lement at 178,000 of assessed value was 962 in addition to taxes, but very quickly I'm going to pay the 962 bucks a month and then it's going to continue to go up and up and up and up the next 18 years. That's you know how you know math doesn't matter anybody else see a hand

um I heard I heard a thing that the city manager say your user rates you can create a separate fund. So like we had to raise ours $20 a month for the first year. We dedicated that into a separate fund. We called it Cal Resource Capital improvement fund where it does not go into the general fund for operating sewer system. The rate payers know that was dedicated because we had to spend a million dollars to go through all the planning all that to get the bonds and all that. So you can you can create a fund in your in your in your general fund that's dedicated for that amount of increase to go to. So if you have to have that much money which it's not unheard of that you have to bring a million dollars in for the funding companies to look at okay to to to fund it. Uh there is there is a cost uh a large cost to to going out to to to vote, you know, to put the bonds up, but I'm not sure that the council had all the information that it needed. When you go to USDA rural development, for one, even SRF, state revolving from your DEQ, you can also apply for grants. We received on the $26 million plant 40% grant money towards that. The rateayers wound up paying about 12 of them when it was done. Okay, that's what they were indebted. Your first payment, of course, is due in a year after that. But your your amount that you qualify for grants goes on income. So, you would have to do a study to and they're going to require anybody to do a study to see what the income levels are. in the city of Tahok for the for the right things and we've done that and our income is so low that

we can't even get matching funds for a grant to even start a grant. So, and business organ told us that on multiple locations.

If if your if your if your funds are low, so low, you have to increase user fees there. I'm not disputing user fees have to go up. I want that understood. But how they go up and how they're they're answered for. You you guys have to answer where that money goes. You don't want to put it in a fund where the public can't see it and then see that it's bought a new dump truck or a new back truck or something like that. that that wasn't was the part of repairing the sewer system or even the water system. But the lower your income, the higher potential you have for grandma. It's not guaranteed what percentage the federal government state make that decision off whatever your incomes. You're correct. You have to I'm not disputing you have to raise our user base. Okay? I'm not disputing that. but how you do it, how you account for it and what you do because also on a geo bond the uh empty properties that have that that aren't connected also contribute. It goes on all the property tax. So that in alone will help relieve some of the costs for the developed properties with $300,000 $500,000 homes. So, there are other options that I'm not hearing here that I know works because I did them 20 years ago or a matter of fact, we're paying one of the 20-year bonds off next month or I think it's next month. Yeah. So, it helps control the monthtomonth user fees. Those those need to be separated on what you're raising them to to do the improvements and go after that. and then what it takes to keep it operational besides just personnel. I mean, you still have to maintain the system. So, we dedicate $10 a month of our $95 a month user fee goes into

capital resource. That's for emergency repairs. That is for repairs, repairing trucks, buying new trucks. We have that set aside for that. You're at the beginning though. you're going to have to set it aside, dedicate to move forward on all these millions of dollars that we're faced with. Like I said, I replace pumps, nine pump stations, an entire treatment plant, and uh we still have to maintain it as we're paying the bonds. So, we have to stay ahead. And what are your rates right now?

$95. $10 of that is dedicated to a special fund that all it can be used for is repairs, emergency repairs, emergency replacements. Your SDC funds can be used for any sewer line expansions that you have that you may have to do. So like our pump our new pump station I told you about earlier, we're taking um $1.2 $2 million approximately with design out of our SDC which is paying that so that the rateayers aren't stuck with it. But the general obligation bonds work because you can also apply for associated grants which I didn't hear any of that tonight. But those funding agencies can either qualify you or disqualify them for that but have you guys even looked into it?

Yes, we have. and and when we talk about grants and such the the responsibility have to say that was the fund first and this funding the 45 million what what has been talked about in previous meetings I'm sorry Mr. May focus.

Um the the funding is not to put this all on the great papers. This is to stabilize the fund so that we can go out and ask for grants, can go out and get federal remarks, can get revenue bonds. To think that the rate increases are the only way that we are going to pay for improvements is not going to happen. We have to do those other things. But the immediate need is to stabilize the fund so that we can go out and do those other things. I'm only in here in here top is not because I'm a, you know, paid consultant. I'm in here because I'm a rateayer. Yeah.

Okay. So, and the property tax I pay in here and everything. So, that's what I'm in here for. I'm just sharing what I've learned over the last nearly 30 years. And I think that you I I I would request that the council do start looking into other funding sources like that and see what we qualify for grants. I lived in NARS 20 years ago and we went through the same thing over rape or tax and it was Yeah. You probably remember when it created a recall out there just because the mentality is usually kill the messenger. I do. Okay. I do something.

Yep. Uh Justin was first

just I mean I think just for clarity sakes I mean uh you know I shifted more you know towards understanding there's immediate need in understanding there's a need for increase at this point. So I just want to be clear that I've moved from two weeks ago to absolutely not general obligation to the balance of both the number I just ran 3.5% is by 40 45.6 six, which is the end of the 20 year 20 year bond be increase the total increase it would be $2,352 increase per year $288 per month. Um that's a lot of money and I think for me I think we have to balance the approach here of fixing what is the immediate need and immediate we've seen the sewer issues that we have pop up regularly right um we're going to see it in the budget I don't see I don't have opposition to to a rate increase at the moment if if kind of what Dean's saying if we can allocate that we know that that's going to repairs. That's what we're selling to to the community right now. That's what we found on Facebook. That's where these slides from. We have to if we're going to go out additional funding, we have to be very restrictive. We're very clear and transparent that money or else we fail. Um, I would like to see an increase. Um, I get behind the 30%. I would like that to be followed with that that fund that be put into a capital invest capital improvement fund

within the sewer and that the council directs that to uh prepare for general obligation bond for November 247. So you're a whole bunch of but you're proposing a one-year rate increase agreeing to one year rate increase.

I'm proposing a one year rate to emergency for stabilization. I am not as for stabilization and then to retain bond council and to move forward and to begin uh bringification from council of what the bond uh looks like for a 20 or 30 step. There's so many different ways to to structure these things.

I think there's a lot of uh sure they could say it's $50,000 a campaign. I I I've seen one run recently for a lot less money than that. Um but you know I want to see a one year rate increase with but I think we get to take that on with the next two steps. I think that money needs to be very transparent. Can we pay restricted funds within sewer for emergency repairs and infrastructure repairs and that we need uh to make sure that we are prepared fully prepared for a general obligation bond uh in 2027. The reason I think that works is yes it is a lot of work. It is a lift. However, we will not it won't put us behind the curve more than a year. uh if we don't do a rate increase next year um if bond is not doesn't flat we have to react to we have to continue to raise rates but based on numbers that would be shocking to me if it doesn't um and I don't think we get behind her because if if it doesn't go over you raise the rates and we're back on So that a lot of discussion happen.

Um, a few things. First of all, I saw Adam had his hand up a bit ago, so perhaps you can go after me. Um, and then sir, what's your name? Mr. Marorrow. Was I Melo? Okay. Thank you.

Yeah. I just wanted to thank you for coming out. Um, we appreciate you sharing that and I'm definitely with Justin in the fact that I think we definitely need that immediate 30% rate increase as I've already um I'm definitely open to exploring a general obligation bond more, but it would be helpful to get some more clarity on the numbers. It seems like there's some discrepancy between what Justin's presenting and what Sean's presenting. Not to say one person is wrong or one person is right. uh but to just have a better idea as council before we make the decision to move forward and do a campaign or anything like that. Um my main concern with a general application fund would be that in the numbers that Sean has presented in in my own numbers that I've run. It seems like that that would lead to a lot more financial burden on our rate payers in the first few years especially in what would be paid in those first few years of the generalation bond and that's just my main concern as you know I think most of us can agree that the worst thing or you know the hardest thing about making decision to raise race is people who may be struggling to pay that and I think a general obligation on hits that harder than rate increases in in my understanding. But I think that's why it's important to get more clarity on those actual numbers and what it would look like for our constituents and what they would be paying each year.

What else would you call that?

I was just going to take the opportunity to address the gentleman and again thank you for coming tonight and we definitely appreciate your comments. Um I am aware of two um grant sources. The largest is CDBG funds, community development block grants, which the city currently does not qualify. I'm currently conducting an income study to hopefully get us back on that list so we can qualify for CDBG funds. The other, you mentioned it as well as the state revolving fund, which is a forgivable loan. So, first we have to qualify for the loan. Can't qualify for the loan if we're not at full positive. And then for all the other grants, the way it works is we have to first have the money to spend to then claim for reimbursement when we don't even have the money to spend. Um, so I just want to reassure you that my goal is to take the city funds that's hopefully generated from increased rates and multiply that blessing to then serve the community with grants exactly like the machine. So who just don't even have the funds right now to expand home experience. So I guess it's talked to USDA roll. Yes, they have laws avail. I from the very beginning we've talked about general obligation bond taking time to prepare. One of the things that we've um experienced in the numbers that I've got when we call these bond companies, in order for them to do a full analysis of everything, we have to give them a ton of data. We have to sign documents to to contract with a specific company. We were not at that stage. We don't have projects identified. We don't have plans. We weren't ready to do that. So, when I called them up, and believe me, cold calling on companies is not what they like, right? But but when I called

him up, it was, "Hey, this is kind of our situation. Can you give me some scenarios that you've dealt with recently? What the numbers were? Kind of ballpark this." But so that's what I got. By no means is this exact numbers of what a bond would cost us because you don't know that until you go to sell the bond after it's been approved by the voters. Right? So I'm very much in favor. We've known for the whole time that the rates are not going to cover the costs. The rates are just to keep us operating and get us cash flow positive so that we can go after that. So I am more than happy to accept uh council member Almire's suggestion and direction to to start the bond process with the target date of of fall 2027. I think that gives us plenty of time to prepare. that it gives us a a way to uh get our ducks in a row so that we can work with bond counsel, have the presentations and do that. My my concern this whole time has been we've got to stop the bleeding. And the stop the bleeding, we've got six uh major breaks. The last one we haven't got the final bill on, but it's over $100,000 um in the last four months. Six breaks in four months. Public works tells me they they did a camera. I was actually going to bring the footage today, but I never got it. Um, that first street line that we fixed a week and a half ago has three other portions in it that are ready to collapse and could collapse tomorrow. It could be a year from now. So, that was been my worry is we don't have the money to fix the collapses. We've got to do something to stop it. So, I very much appreciate your thoughts and and how you deal with that.

Can I go first? No problem.

Um, okay. So just some clarity in cash flow positive. What determines that? What level? Would the 30% increase it helps us? Would that get us to cash flow positive? We're closer. How far away would we still be? I don't have that number right off the top of my head. Council member, I I think it's better that that the 30% was the minimum that Consor experts and the rate people and the financing people told us that's the minimum that we can do. their preference is still the 40%. But the 30% at least gets us in the ballpark that we can work with. Um to Council Member Optim's point, revising some things like not hiring some of the staff or delaying a back truck, doing those kind of things to help get us to where we need to be.

So did their version of cash flow positive include like the second year 2 14 and a half, year three 14 and a half? Yes. So is that to maintain cash flow positive or was that it's to get us to a position that we can start applying. But even with a second and a third year 14 1/2 that extra 29% increase we would need that to get to

I think we'd be in a better spot without without it to start applying for things but it puts us in a position I think we would if we only do a one-year increase Brian I think we still need to do a year two increase but that increase is much smaller. So that could we split the difference and at 35% with the intention of a general obligation bond knowing that uh that's in December or sorry that's in November for that election that would be November 27th is what council member November 27 yeah

I just wanted to clarify rain grease starts to July 1st. That's the proposal. Yes, sir.

And the this would help us with first of all, we'll get back you used the term cash flow positive, but this also creates that that nest egg for am I correct? There's a nest egg in here somewhere. I pray. I mean, I'm hoping if if you're going to if we're going to ask our people to come up with 30 or 40% extra, having did someone who will write that check. Okay, I'm um I would love to know and be able to say with a straight face, having dealt with nonprofit government my whole life. Okay. Uh sometimes money just kind of well, we had more needs than we thought and sorry about the nest egg part. That's the part that I'm saying that's my heard me say it probably three different ways. How do we know that in a year from now, let's say we come back and and we have another another proposal and we do another rate increase for sewer much less. But you know, kind of um I want to make sure that if we're going to because this is a kneecap to to our u constituents um especially those that are on a fixed income. I happen to not be that person so I can find that extra money, but I worry about those that don't. And and so uh if we're going to do that, I I all I'm asking is that somewhere when we sit and talk about this next spring and we're talking about where we're at that we're going to say, "Oh, by the way, there's x million dollars that we've got on the day prepared and that helps us with the bond situation and all that." Is that what I'm understanding? And I'm sorry if I sound ignorant, but I want to make sure I understand what's going on. that the way it's been written and proposed is that there would be a rate increase to the sewer enterprise fund

for the sewer enterprise fund is a silo. It it goes to operation and maintaining of the wastewater collection and sewer treatment system. It is separate from the city's general fund and the even the water fund that is also an enterprise fund. Those are separate. So we cannot the only way we can take money from sewer and give it to water is if we do a loan which we may have to do the other way to cover some of the repairs that we've been doing lately. And that loan has to be paid back with interest. There are very specific laws about that. So, if you look, and I know I apologize for the packet, I spent more time than I should have on trying to get the the rate table to a size that could actually be legible.

Can you tell me which page it is on your that is on page 67 of your packet? Thank you.

Um, and if you zoom in on it, what we can do, and I'm going to look to Jamie for this, we have an exact number of customers. If you look at the very far right column is the number of customers that we have on each rate. We can do that math of customers times the rate and get a ballpark figure. Customers will eb and flow a little bit as people move in, move out, new house built, whatever. We'll we'll have those customers. We can take a look at that and say, "Okay, this is what we anticipate the rate being and the money that we should have raised in year one. I'm more than happy to bring back an accounting of that item. Now, whether that goes into a specific line item for um capital improvements within our budget within that sewer enterprise fund, we do have line items. I don't know that we have totally sused out what that look would be. Um but I think we are to a a point that we can we can make that happen. and we would do that on the budget. So, you would have an opportunity to look at that as part of your budget. Um, and I appreciate the council's not obviously stating the issue that we have to do an emergency repair and get funds.

I'm going to take a motion. Well, I think I saw ahead on maybe uh you're making your reference to like kind of like a nest egg or something. Um, but in other words, if I understand correctly, when this is all said and done, yes, it's going to be painful uh financially on a lot of these citizen issues in their collection. That's exactly that's beautifully.

Okay. Yeah. So in our budget itself, we have capital improvement project line items in there like the high school line, uh excuse me, the elementary school line, different areas that have already been identified that are very real projects that need to be done. Um they don't have funding denying them. So that rate increase will help us to fund those actual line items in our capital improvement list on our budget itself. So that is one of those areas if you like a nest egg where that money will be devoted or spent for real break the ground live repairs. The other real key piece of the bigger piece is it also puts us in a situation to where when we come to these lenders or whoever it is they say you guys are financially viable enough that you qualify for the loans for the big project. And so that's where that rate will give us two nest eggs if you will results on the ground being broken.

Um I don't know if that can help a little bit. And if I could add to that the the administration and city management administration is more than happy to bring an accounting this is the money we took in this is the projects we completed with that money.

We want to Yeah. We want to be transparent with accountability. Exactly. motion second. Um, so I'm going to make a motion to bring a resolution back. So it's closed. Um, I move that the council guide city manager to bring back the resolution for 35% increase. It also clarifies the following. The increased revenue will be placed in a special fund or line uh per capital improvement within the store enterprise fund. Two, the council will not increase rates in 2627 and three with pair measure to the 2027 general election. Motion to bring back resolution. Second.

Okay. Second. Any further discussion? I just have one. Hold on. So, I just see this as like I talked about two weeks ago, we're in emergent need to stabilize our sewer fund. Okay. I think council offer has a viable solution. I'm not against the bond, but I think I said before and the city's made it clear we got to do something now. Bond doesn't get us that. I feel like this does goes a long ways to stabilize where we're trying to get to. That's the reason for my second and that's my the just want you to clarify why you stipulated there would be no more reasons in the next year. So I'm trying so 35% this year.

Yeah, it's an extra 5% this year extra 5% next year. I was at I I guess my initial emotion was that I was going to be a 30% you know Eric Brian halfway in the middle so I upped it to 35% but with the concept that we wouldn't increase next year and would be prepared for a bond and so the only thing I would say is if we look at stipulation and the bond fails it's only one year it's only one year 27 I understand okay basically I don't want to come back here next year after 30 going to 35% increase preparing preparing for a bond and then basically again right before we go for a bond I I'm not really a suicide mission.

So my question was exactly the same as council member Chris what I heard for was a two-year delay and so thinking that a two-year delay would hamstring us if a bond were to fail 26. So, so right now we're mixing up budget year 2627 and then July 126 we start budget year 2728. So what I would just clarify that motion is you don't want to have any increases before January 1, 2028.

Can we Yes. Could we modify your motion? No rate increases before the for attempted moment before. Yeah, that's I I see a hand. I see a go ahead. Um time for public comment. I'm sorry again. I I don't want to interrupt things, but you the question's been called and that means that discussion or the motion has been called. I can follow. We're still in our discussion, but but that's your discussion, not the public's discussion, but I'm a procedure. You may go ahead.

Um I understand Commissioner Chris question. He wants it accountable. I you can add a line item. I think they already said you could. The dedicates that. So if you're raising $30 a month that you're dedicating $10 into that line item not to be disappear in to the general budget, you know, into the into the sewer fund. I'm not sure that I can agree with uh Councelor Optimire. I think that not doing any type of small increase each year, like even $2 or something, you're just kicking that can down the road and you're never going to even keep up with inflation. So, I'm right there and I would rather see a small increment than nothing over two years. But at least you can still you can take that money and you dedicate it to any of the line items. Okay. But, uh, I'm not trying to to disagree with the council member, but you're going to do a 30 or 35, you should really consider and let the public know because

this isn't going to get any better, right? All right. It it doesn't heal itself. So, I think if you look at even small increments though, you know, over the next couple years, and that money is also dedicated to either in the general fund for repairs or emergencies because emergencies are going to eat you a lot. Okay. But if you could do that, it's less impact on us and the rateayer, which obviously you all are, to come up with two extra bucks a month than it is 35.

And you're you're you're not you're not slowly falling behind. And I think that the way I understand is that's how I get through. So that was clarity and and I I think there's I think this is a perspective conversation where there's there are there are voters in the city who would like you know we need that need some clarification like this isn't going there's also a lot of voter sentiment within the city and surrounding areas not through the surrounding areas but the city particularly that if if It's we increase and increase and oh no we want more

in a lot of uh voter things and uh I I would have concerned with the general number of voters if we embrace right for and that's why I propose the split so that if we end up looking at the 30 we do collect that extra 5% this year and also for at least the first six months of

I think it's needed. I mean I I mean we've seen the repairs. I mean I think that the community source it's not um you know but again that goes to my that second point of having it in I think said having it in that that fund also when asked well what did that money did you just raise for we have very clear that going into the capital improvement fund is went against these projects is I think that's very I That's where the uh educating the voters when we get to that point is saying here's the list. Here's what we have already done with free money and being very very clear on what has been done. We're being good stewards. I know that our our staff are and our staff are going to do everything they can everything they can to nickel and diamond pinch that and make it go as far as they could and I think that'll set us up well going into a if we do get to the part where we go to a bond um

sorry I apologize before we call the question do with the adjustment of Justin's motion to prior to the bond we won't fiscal year. Are you accepting that changing your second? Yeah, second that. Yeah. All right. Questions call? All those in favor signify by saying I opposed. All right. 51 motion pass. Did you have that document? Yes. All right. Okay. May I ask a question?

Yes. Um, will there will the council be voting to authorize you to sign the resolution maybe tomorrow when we have it updated or who might need to bring back the motion is to bring back cleaned up with the Okay, perfect. Just make sure we have that one. Can we take like a three minute recess? Three minute recess. Let's do five. Five. Yes, we can do that. We just stretch

out.

Looks like it's going back and forth. It's good. It's good. It's good. We're unmuted. All right. Perfect. Next, then we'll do the water. Uh, which so we have this conversation all over again. Let's do it again.

Now that all the ses murmuring is done, we can we could have the uh the the conversation. So, last year um the city council voted uh the recommendation of RCAC um and uh to secure the $7.2 $2 million uh business Oregon loan for the waterline project. Um there was a a need to take our water enterprise fund and raise the rates there as well. And the decision was made last year to raise 18%. The uh recommendation was to raise 18% a year for five consecutive years to meet the needs of that fund and to make sure that we can pay the debt service. I did want to provide an update because sometimes we get a little bit um ahead of ourselves and staff. We know what everybody's talking about, but we don't always let the public uh we don't always articulate it well to the public. So, our waterline upgrade that you're seeing trucks mobilize out of the port right now is a two-phase project. The first phase is 16,562 linear feet of 30-in diameter transmission line. uh 3600 million feet of 12 in and 16 uh portable water distribution lines and a projected cost of 14.8 million. We we rounded that a little bit for 15. This is all in the memo desk. Um that is for phase one. It takes us from basically the port boundary south um to um long prairie road. Once we get to Long Prairie Road and 101, that's where phase 2 begins. Now we had phase two. Um, we don't have design for it yet, but we anticipate

that it'll be another 12,000 ft of 30-in potable water transmission main, another 10,000 ft of 12-in distribution lines, and another $15 million of cost. We don't have any funding for this other than when we've applied for funding, we had for phase one, we took $10 million of ARPA funds and then we had secured the $7.2 million loan from Business Oregon to complete that. In the interim, we received the earmark from Senator Mkeley's office of $4 million, which the check on that has not cleared. I want to make sure that we're clear on that. We have the legislation that says we will get the money. Eventually, the money will come, but we don't have cash in hand. And it may be a year or so before we have that cash in hand. So, just to make sure that we're clear on that, it will come. We don't have it yet. We like the idea, the city administration likes the idea of having that $7.2 million loan from Business Oregon because that can contribute the first $7.2 2 million of the phase 2 waterline project that still needs to be done to increase um our resiliency in our waterline. I want to make sure that it is clear um to the public and I know there's been some rumors on social media. This project is it was been in in the works for many many years. This is not something that any business or any and I'll use the word data center. We have not contracted with the data center. We are not in talks with data centers. They have not come to us. This is not what this is for. This is resiliency to improve our borrowing system and for phase one move it out from underneath the airport at the port bay. So we did not have somebody come to us and say you need to upgrade for x

reason. This is an upgrade that has had to happen for many many years. Much like the upgrades we're talking about on our sewer line. Uh we're following the recommendation of RCAC to um in order to maintain the debt service on that loan, which there is no debt service yet because we haven't spent a dime of it. Think of it as kind of a line of credit. We don't want to lose that line of credit because it's important funding, but in order to keep it, we have to maintain the rate increases that were proposed last year. So this is why you have a resolution uh to raise the rates on water again 18%. That said, um, as with sewer, we're always looking for other funds and other loans and other grants to to help us with this. Um, the senator's office has been very kind in helping us with that. We anticipate going for another ear mark again next year. Um, the um was going to say something else and that train just walked away. the the um increases are there um for for those reasons. Um and I will think what else I was going to say in a minute. It was important I know but I'm going to pause right there.

Okay. In order to keep the loan. Yes. Does it have to be the proposed rate increase or can it be any rate increase? I'm not sure. Sure, I know the answer to that off the top of my head, the rate increase because it was a it's basically a revenue loan, right? And and in order to meet the debt service at this point, I don't know that we have to do the full 18.5% because we haven't spent any of that. That's

the question because we spent $4 million. I don't know that we could have done that. But I don't want to risk anything and I so I don't know the answer to that question. Well, I guess the follow on that is if it's just to maintain the love and the access to, you know, and and it would still be fronting. This is to pay debt service that doesn't exist. So, like if it was a a 3% increase, then we would accumulate a 3% increase for I don't know, it's probably a couple years out of even use that loan if we were to use the loan. Correct. Yeah. So that would be an accumulation of money that would front any of that.

I think that's fair, but I don't want to I don't want to take that. I remember it was I was going to stand. The reason that this is important tonight is any change in our water rate structure requires 60 days notice to our commercial customers such as Fairview Water and the Port of Tam Bay. We have scheduled this to as a July 1 increase because there's not another meeting between tonight and May 1. So if we want to have this start on July 1, any rate increase start on July one. It has to be approved before May 1st. Is it that they're going to deal to have it start on July 1st as opposed to July 15th? Two weeks. One reason.

I just have to have that notice. Whatever. Okay. What I I don't care personally. It's I just want to make sure that we're meeting that obligation for notice

because I think it's an important question to answer is sure if it's only to keep the loan as as a requirement we have to have an increase if like a.5% increase would cover that. I see real quick. I last year's conversation with sense of the increase to people was because the city's committed to having the revenue to fund debt service. That's that's the reason for the increase. That's the reason for the required. There's no no requirement once you secure a loan to have these arbitrary increases in a sense of if there's no debt to pay back. It's when there's debt to pay they want they get your increases. It's difficult for almost all business loans. So it's different you stand corrective but the act of credit. So the reason that increase is required or any increase in required that's just to show you service the debt that they're about to give. I I struggle with any increase this year because we have 6% or 18% that was done in September I believe which would put us in December for commercial users. So we'll have half a year 18% with no debt service extra debt sorry service and then this next year fiscally we will have a full 18% over the what the budgets are with well the full 18% with no debt service like I don't think we should be passionate enough for silver rate increase 35%. like I don't think we should be hedging our our fund when we don't have the debt to service which was really one of the major

should or was the major component of increase in the rates being 10% for five years like when you go start I mean we talked about we get the study done 15 like we're going to use a very like two like and we already% then we should be able to service that in. And so I look at this and I'm like when we start to get deeper into this space too. I appreciate it's um when we're starting to get deeper in this I definitely think that we're going to have to figure something out. That's a lot of money but I don't think we can do it. I think that's serves to my question is whether or not that is a continued requirement to keep the loan access and if it's not you and I would be have to agree with with uh over there um simply because it'll be easier for me to just to justify the 35% increase that I just did vote for. So, I am happy to talk to uh our contact Melanie Olsson. Um I can give her a call first thing in the morning. Um my only concern about a rate increase was trying to do things on the budget year that that's why I asked two weeks is really that big of a deal.

I I don't know that it's that necessary. I am happy if it's the council's guidance to staff to uh take this back bring it back for further discussion once we can have that clarification on the terms from from that I think if we have that information I think we can make we can make that decision that's good okay saying yes this thank you yes Yes,

I would be happy to vote today. Yes, on 18% increase. Um, it's $3 a month and I think that's fair, but I'm also happy to wait and have Sean come back with it on that point. Just follow. So, if it says that you do have to have an increase, I guess I want to hear why we have to have why you want 18% compared to 4%. Just it was the recommendation of the experts for that loan debt service. It was 18% a year for 5 years assuming that we started the debt service. Yeah, that's that's the question.

Hold on. So, sorry. I just thought I add something too. Last month, I finished applying for federal funds under EDA, Economic Development Administration, uh to the tune of $15 million. It's not guaranteed we're going to get this. It's a chance. That being said, that is a 20% patch. 20% of 15 million is 3 million that the city has to come up with. That's leveraging city funds 5 to1. That is amazing if we can get that. But that's going to require us to have the 3 million which I'm hoping we can use a loan or something along those lines that we already have for business. So, just keep that in mind when we consider this.

Yeah. And and I think at that point for me that would be a win-win. At that point it's I mean you're you're you're quick like you're ready to use you guys that the rate the rate increase we're using the bone like that it's no great right but to do it before we know we have a need and draw down on that that I appreciate you I hope we I ask you to make sure you gather all the information. Thank you. It's just proof that Adam is searching over every couch cushion at every government level to find pennies fail.

All right, thanks Adam. All right, moving on to reports. I did go to the top community college of the new buildings that was huens. Yeah. Consensus to bring it back. Yep.

And so went to the grand opening TBCC. They're almost done with the new building which was electronics for welding, electrical. Uh it's pretty neat. Uh all of the nursing stations. They have a moth ambulance in there now for training. It's uh it's pretty impressive. and we actually have a place we can have a meeting in this city now with over 400 people with uh screens and everything. It's pretty it's pretty amazing now to have that. So uh it was a good it was a good function. Uh Fourth Street looked really good. Thank you. Had a lot of compliments on that. And then the potholes that are being filled uh did that too. So we had a couple of those. Um next we'll do departmental reports. Finance is first.

Well, finance is doing okay, minus our sewer funds. Um, I will be Yeah, I will be bringing a supplemental budget to you guys in the next couple meetings. Um, we're going to have to do some switching and some stuff from different funds just after these last emergency things that we just had last weekend. Once those come in, there will be no cash carryover in sewer. They're that bad right now. So, I will try to do a little bit of everything to try to get us through this fiscal year, but that rate increase will be huge and key just to get them out of the red and cross our fingers that no more emergency breaks happen in the next month and a half. So,

pretty sure we have a pastor on council might be a jer. We have uh planning in here.

Uh I've included the planning report for our new and there really wasn't anything outstanding that we board on. Same old, same old. So if you guys have any questions. All right. Um can you clarify rumors? I clarify rumors. I get asked by kids all the time. Thanks. But there's a rumor going around that the that Danny's property is transforming into a different restaurant. Uh, possibly, but nothing's been submitted. So, that's just still rumor. Okay. Would you like to do your uh housing?

I did not attend the housing commission, so I have nothing to report. I apologize for missing. Yeah, you're fine. Have a seat. Thank you. Thank you. All right. Public works. Got anything you want to add? Yeah. Thank you for the pictures. Yeah, that's awesome.

Yeah, that is nice park. That turned out so well. So well attended. Um and thank you Terry. He came ran over the hill got all the shrub ring flowers everybody. His crew got them beautified that flower bed which really made it pop. It's nice. Um and the community really I was surprised to see so many there. So that was nice to have that park opened up. Um it's also nice too is you know the downtown we're all trying to work together to get it going safe and clean. That's been some of the goal of the council and us too. So um I think we made great strides make just another stride in that direction on Main Street. Uh Justin and volunteers, Terry, they went through and power wash clean the ball and then Terry reached out to us so we could come behind clean the curbs and sidewalks. That really again just kind of helped lift the curb appeal downtown. So I like that. I always want to just keep encouraging all that as much as possible all working together. It takes all of us. So really appreciate that. U street is done. Um so that's nice. Uh there was when the fifth street project was done, there's one block in there around Cedar that's still just absolutely terrible. Looks like a minefield. So um had Brian Messy Pavement gives a quote. Um we should be able to get that last section done. Then Fifth Street and Fourth Street should be pretty much good pavement all the way through, especially since fits the real thorough bar. Sixth Street where they did all the sewer level repairs. That's all been paid here recently, too. Done. And then we'll be getting that patch done over there on that emergency sue repair over there on First Street that was done the other day. So then Tyler's got a list of some other hot spots. So he's really every year worked with Jamie trying to just get asphalt out on the streets and get them paved. So that's been not that's been nice. We'll continue to see more of that so that uh the roads aren't so terrible if they have that. We'll start

turn the tide on that. Um, other than that, what was the other thing I was going to update you guys on? I think I have my report on me. So, that's it. Any questions? I just had a question. Sean, I can ask like, do you know where your next bigger project is as far as street paving? One area that we're looking at right now uh just because it's gotten a lot of complaints is the section on Nin Street between the well essentially right where the Nin Street park is right through this area. It's just terrible. So that's one of the areas that we're looking at trying to get hit with the next Ninth Street itself but across street as well.

Oh well we're talking Ninth Street on the west side on the west side. Yeah. Yeah. Yeah. It's got some bad spots in there. Uh that's one of the ones that Tyler's identified if you go around. So there'll be a couple spots for sure. Yeah. You have questions. Just a comment. Please thank the groups for all the hard work they've done the last couple of weeks and those require important work that they're doing and I don't think they get credit. Thank you. I appreciate that. pictures of the uh barn boots and up to their ankles and boom. It's pretty great. Everyone puts it in pictures. Thanks.

Yeah. Well, thank you. Appreciate that. Appreciate y'all. Thank you. We have the police department report. Do you have anything on there? Chief here. Uh chief is uh on a family visit, so I don't have anything to add other than what's in the pack. All right. Oh, well, I'll talk about one in uh my promise. Okay. Uh urban renewal.

Uh we had a meeting with several spirited discussions the sidewalk project. We're still having chats about that. Uh we haven't made any um any updates outside of we're still gathered information trying to get finalized bids. We did give money to the grin squad for uh putting new uh utility plugs in the lights. It wasn't unanimous, but it did pass. It also gave money to um Terry's project on remind me of is it which one is it? Plaza. The plaza. The plaza. Yes. For a grant we awarded that. Um hopefully follow up. City manager. Have you touched base about the meeting that the council directed to have with Tara?

Um no I haven't. Her administrator was out last week and so I just haven't been able to schedule that yet. All right. And that's all I got. All right. City manager report. Oh, is it me? All right.

It's you. Um, where did we start? It's been a busy couple weeks. Um, damping ordinance. Um, last council meeting there was some discussion on that. Um, and I so I wanted to give quite an update. We staff finds themselves really between a rock and a hard place on this one. Um, when it comes to the camping, there's so many different variables that come to this and as we've looked at other cities and what they're doing, we just have not been able to land on a place that we feel good about bringing back to council, which is one of the reasons why it hasn't come back. We have been trying to reach out with care and with um the Adventists who offer um we believe offer some sort of RV parking and stuff that provides restrooms. We've been looking at the safe resting place as you remember Miss P was here talking about the bathrooms and we don't have restrooms that we can provide. Care only provides restrooms to those who are there and they lock their stuff down at 5:00. So, if you're not in their parking lot or whatever, when they lock it down, they don't allow people in there after that. Um, one of the things that we strongly look is the direction from the council on on the um enforcement piece of it as far as a graduated enforcement on trying to get that. We just have not yet found a a plan that really we feel like we can enforce that meets what the council is looking for is getting these RVs and the undesired RVs off the roads without impacting negatively the desired RVs that we have people that come in or or grandma and grandpa that bring in. Um we have um the the cars versus versus tents and such. So, we just really

trying to be very transparent with you. There there's so many pieces to it that we just don't have answers for that I haven't wanted to bring it back. That said, if council would like to see it on the next agenda, we are happy to bring more of an update, but I don't know that we'll have more of what we have tonight towards that. We are meeting on Wednesday again as a staff in our internal working group to to talk about this to see if we can come up with those answers again. But but those are the things that we are struggling with and I just want to be open and transparent with you about it. Okay. So that's one. Um two um I did sign a memorandum of understanding with report to for tonic stocks. This is emergency supply storage that is being granted to us and we need a place to put it that's outside of city limits that can be somewhat protected that we can access so by literally the poop hits the fan we have a place to go that has some emergency supplies force.

Yes. Uh are you talking about like a natural disaster or something like this? Yes. Yeah. So like tsunami or earthquake. There no other place within city limits that's on this side of the TR river by and bridge is going to be out access to the con. So we're placing some of these in different strategic locations. We're actually getting three of them. So we're strategically placing them a couple in the city and one outside. Okay. My thought is outside that should be the countyy's jurisdiction. County should be set something like that. If we're going to set up three for our residents in the city, all three should probably be inside of city limits. I think one of the requirements is for it to be outside, but let me double check with Okay, grass is outside, right?

We already have one that we're planning on there or if something works right in that area. I'm just thinking that knowing that the bridges and and natural disaster we're probably going to get is going to be an earthquake and tsunami. It's going to take out all that area out there. Anyway, I think we'd be best fit finding a different location.

Let me let me get back with you. This was something that Chief Troxel let the the charge on. Um he has the parameters that they've been looking for. So let me get back to you on that because I don't know those off the top of my head. Um but we we do have that. Um you were given the RCAP support letters that were drafted. This is just, you know, we help them, they help us a little bit um on stuff they've helped us with. Um today we uh signed the DEEQ opportunity and recycle report. That's a requirement annually from uh from the state. Um this is in partnership with Sydney Sanitation and Sil County. Um we just have to sign that we're a part of the program. They do all the work. Um and we have the documents for that if you want to do that. Um couple of fun things that are coming up on April 30th. I believe this is a Thursday. Um, we have been invited by Amazon to invite members of the city council to come and tour their new facility out of the court. They do not have uh room for everyone. Um, they can only take about 20 to 25 people. We're not the only invitees. Um, but there is a concern. She says she has room for the entire council with you if you want, but the there's concern about making a public meeting and forms and stuff and we have to agendaize that. So, I'm here to just get an idea. This will be at 10:00 a.m. and take approximately 2 hours. How many of you would be interested in attending such an event on a Thursday morning?

What's the date again? April 30. proposal. I didn't choose it.

Yeah. Yeah. You do that by posting agenda saying the majority of the council may be no no business will be done. I'll back tomorrow. I'll check to I have one thing that I might give away but I'll show you that might be interest. So and Justin Okay. What day is it? It's a Thursday, April 30th, I believe. Yeah, we got Okay, so possibly four. Okay, I'll text you tomorrow. That's fine.

Um I think that'll be a cool thing. Um touch and truck event, one of our most popular events of the year is scheduled for May 5th. So where we bring out all the big heavy equipment and put it out here on Laurel Street. Um they've got some of their permits for that already. Um that's awesome. Um, Chief, uh, you may have saw a a uh press release go out uh regarding the every 15 minutes program that's been involved here in Tilman for a number of years. I'm sure Council Member Reynolds could talk about the impacts that this has had. Um, that is happening on April 30th and May 1st. I think I have the dates right there. Um, that does involve a road closure on 12 street, but it's to teach the high school kids about things driving. And what they do is they actually pull somebody out of class every 15 minutes to show about how often somebody dies from from that driving. So I've never been involved in it personally, but I think it's a pretty powerful uh impact that they do. Um we want to welcome our newest police officer, Taylor Halner. Um Taylor comes to us from dispatch actually. Um she was uh sworn in in a private ceremony. So we have to swear them in before they go to the academy so they can carry the gun to the academy. Um but she'll be starting her uh 16 weeks at the police academy on April 27th. When she graduates the academy, we'll bring her back and have a public swearing in and everything uh with all the circumstances. She joins our rankings. But um uh Chief Charles is very excited to have her.

Yes. as a uh former teacher at Taylor. Very excited for this hire.

Okay. Thank you. She is super excited. We talked to her just the other day. This has been a dream of her. She worked as a she's went was a cadet when we had a cadet program many many years ago. Um so, um this is a fulfillment of of lifelong dreams for Taylor and and we're excited that we can help her out with that and I think she'll be a good addition. Um and then finally um at the uh invitation of Mayor Welch and student manager David McCall, I did attend the Bay City um state of the city event on Saturday. Um that was a good event. They actually bring in uh EUD, um the fire district, everybody to talk about stuff. They have their planning department put all the stats up of what's what's been happening in the city over the last year. Kind of a fun event. Then they had the uh the fish paddler that's out there. Is that what it's called? Um that has some clam shower provided for for those that came in. So a really fun low-key event for the residents of Bay City. Mayor Welsh kept telling me that we need to do something like that here in Took. So I'm just going to throw it out there that if next year we want to do a state of the city, that's that's the model.

There could be city. Yeah. Only if the mayor has that. That's usually that's how it is. The mayor has to speak. Yeah. Um, and then just that'll be a short I just want to comment on on the TBCZ thing which I also attended with the mayor the those mannequins in the in the uh hospital nursing training room so lifelike they'd have eyes that blink and if you look at them their eyes the mannequins I did it was creepy and you first walk in they you it was difficult to distinguish that those were plastic mannequins rather than human bodies sitting there

sure that was not present Yeah, Dr. Paul's put on a really good event and I would love to use some of their facilities. Talk to Dr. Paul uh and see if we can get some accommodations. So, if we do have good council events or uh state of the city, some state in the city place or something that we make use that as an alternate for city hall for different events. So, that's my report. Thanks.

Absolutely. I remember the thing I wanted to bring out black tab Adam you know bio spells have just kind of been this source sp community for a long time trying to figure out where you live Adam got an update we are moving forward the plan just briefly just give an update of what's going to happen with those well they've been growing the plans over at farmership and their plant growth facilities so we expect that project to hopefully go on this year

so the idea is these plants should be wers that thrive in there instead of die in there. And then they should be less maintenance because they'll grow up. They'll be strong. They'll hopefully keep out the invasives. So instead of having Don go out there and weed eating them down all the time, they should grow to fill them. Turn out there's a big hole down there with a bunch of garbage. And then he just mainly have to get the garbage out of tops. That's the thought. That's where people feel pretty confident that those plant species we'll put in there will be able to achieve that. So make it more nice. Not a big deep hole. I think that'll do best we can right now%.

All right. To approval of minutes of March 2nd, the regular session that we approve the minutes from March 2nd. Okay. from the uh our second regular session. Second. Okay. Move in second. Any further discussion? None. All those in favor signify by saying I

oppos. Motion passes by. Now we have council comments start um I mean I just want to echo I mean there's a lot of positive things happening um the college grand college feels really impressive um it's just really testament to what the community um supports and I think it's going to be a great space to not only education but just the community in general Um, kind of going what uh Sean Mar was talking about, we had two seniors uh did their senior project to pressure wash sidewalks. Um, they covered some good territory, but I think the one man crew Jeremiah carries through the piece been graciously giving us um downtown is kind of a oneman wrecking crew. if he uh can he can make some washing happen. So, uh sidewalks are are getting clean and it's typically good down there. Um the other things happening downtown, uh just from the chambers standpoint, um the planters uh that you see throughout downtown are going to get a major revamp this year. Uh so I'll leave it between those to hang baskets for curiosity downtown. Um I want to give a shout out actually to DEQ which is not something you hear often but uh between the meeting we had here at city talking really between some of the work that we're working on enhancements on the the uh they have been outstandingly helpful and I just wanted to give them a shout out. That is not something that I anticipated based on just how people

talk about the EQ. Um and I have gotten more follow and better responses uh from that state agency to every state agency. Um so car master has been really great work on that set of things uh animal. Um as G mentioned there is going to be some pretty well things to turn going on the utility or on the light bulbs uh for holiday decorations. Um I think two things um sorry long um two things that I aren't most positive is our according to the situation downtown the enforcement has subsided whether it's fully disappeared I don't know but it seems like it has um it it was really great for a while and things were creeping and all of that and there's a lot of positive feedback from them. we have to we've had a conversation where see some people um there are a couple specific businesses at that time that are barking on literally quite every side of being and Pacific um and so that that's a little bit I mean there's a lot of positive going on so we give that back control um I think it would be a lot easier then another thing is just that campaign or um I I want I think I'd like to see put a workshop on for making uh that for that and see if we can do something back in June 1st. I get there's, you know, you can run these at basically. I might be the jerk in the room, but like I don't code as far as I know doesn't allow for

better or bad. Um, and so, you know, I think we as a city need to make it hard to be a bad actor in the scene. Make it difficult for somebody to break the ordinances. I get that there are legalities officer talking about those last time we had a workshop. There's a lot of things that we don't want to do or shouldn't do. There's other cities one way or another. We have to do something and so I would like to see a workshop May 18th and I would like if we can that would be done in just two weeks. I'd love to see something come back in June 1st. That's the beginning of summer and that is when we're at our that's when we start to sink a lot can't be in place for the public. So I I know that there's difficulties around it but we have to figure it out. We can't just be like oh it's hard you know it's difficult and like we don't know how to do this. We have to figure out um as a city. I don't know if she would.

Do you have anything planned for that meeting yet? Scheduled, but that would have to come from the majority to come soon. Before we did that question for a directive, I think the census would work. I don't think we is there. I don't have anything on my calendar. So, yes. Yep. It's all good. Okay. May 1896 or 6:00.

Okay.

Well, I so Sean, I thought maybe you were on the same way either. Um, recently running across uh if you don't mind, it's a little bit extensive, but I'll try. on Uberly but uh found this quote from Benjamin Franklin and the setting is um they're they're constitution convention and they're impassing each other and not being very nice and getting nowhere and and so uh the old sage stands up and uh this is addressed to I believe Washington and he says in this situation this assembly growing as we were in the dark to find political truth and scar is able to distinguish it when presented to us how it has been served that we have not hither to once thought humbly of applied to the fathers to eliminate our understandings. In the beginning of the contest for great written when we were sensible of danger we had daily prayer in this room for the divine protection. Our prayers, sir, were heard. They were graciously answered. All of us who were engaged in that struggle must have observed frequent instances of a superintendent that's a capitalless pro providence in our favor. To that kind of providence, we owe this happy opportunity of consulting in peace on what means of establishing our future national felicity. And we have and have we now forgotten that powerful friend. I have lived, sir, a long time. And the longer I live, the more convinced uh the convincing proofs I see of this truth that God governs the affairs of men. And if the Pharaoh cannot follow the ground without his notice, it is probable that an empire cannot rise without his aid. We have been assured, sir, in his sacred writings that except the Lord build a house, they build and labor those who build. I firmly believe this, and I also believe that without his concurring aid, we shall succeed in this political building. no better than the builders of battle. We shall be divided by our

little part of our partial local interests. Our projects will be confounded and we will find ourselves uh to become the reproach in my word of those in the future. Um so I'm just I'm not proposing that we pray. I am asking for those of you who do pray uh do you pray for prosperity for this little pen on the organ? I didn't. And uh I do pray that we won't have to put sewers and water systems in uh after all of this for a while. But I also think if you're not praying, and I'm not telling you have to, I'm not suggesting I pray. I'm just asking you all if you believe that the Lord is in this um he has he has the means to help us get through this. Okay? So that's that I thought he knew what he was saying. Uh it might be wise for us to be asking for that kind of help. Thank you.

History teacher. I figure you probably got something better.

I love I love that scene. I love it. So, um uh no, just two things for me. first um like the camping ordinance. I agree. I think it's time to go we get our heads together and we work something out and and get something through there. Uh and also as we start heading into the summer, as the grasses start going longer, as people start getting outside more, um I I think it's time that we get more proactive in the city and in enforcing all ordinances rather than reactive. I don't need it. You know, if you're a city employee and you're driving by and you see something that you know is out of the ordinance, it shouldn't we shouldn't have to wait for one of our residents to, you know, use one of the new programs that we offer, right? Those are the things that we don't see. So, if if we can be more proactive cleaning up town, cleaning up the neighborhoods, that would be a huge huge win for everybody. and he doesn't say but maybe an attitude for a city employee or you know ordinance officer or something to knock on the door and say hey this is not acceptable and so we're putting you on notes right we drive by a boat parked in the road in Third Street it's been there for sale for months obviously that's out of ordinance if we see um you know a bunch of junk collecting in a in a yard which is not accepted by ordinance why are we waiting for citizens to do it, right? Um if you're coming out and you're trying to turn and you've got a a bush or a tree on Pacific that is in invading your eyesight down the street. I sense there's specific things there but everybody but a lot of us are going oh yeah I know that oh yeah I know that it's there we see it proactive rather

than reactive and I think that will have a huge impact by cleaning things up faster than being reactive is people will get the picture let's do this okay and then the second thing um just wanted to give a huge uh thank you to the school district. Um so they are moving ahead and over the summer people will see a lot of construction happening on school district properties. Um every just about every building and and location with the school district is having some kind of a project done uh this summer ones. So, it's going to require patient from members of the community around Liberty as they're doing a a large renovation project inside of Liberty Elementary, at the high school, big roofing project, and also the fieldhouse. Um, you know, new tanks, gas tanks out at the the bus bar and things. There's been lots of things happening and it's also thanks to the goodness of these people, the other thing in our community who have voted in favor of this farm.

So, any there we go. We have a good town. We have good people here and it's actually privilege to serve them.

Um, two things for me. I had a conversation with a local builder who specifically does um small housing complexes, duplexes, things like that. And uh the focus of our conversation was on the lack of capacity for sewer and water infrastructure. So, I'm really happy to give back to them that with these increases that will give us the ability to have more capacity to build more affordable housing for folks. So, that's awesome. And then also the YMCA will be having a plant sale in the next Saturday and Sunday. So, if you like them services, please come out and support. anybody that I suppose is getting ready for so the uh the magic program across the street.

Well, I don't want to break the streak. So, we'll hit two things here. Um, one, I was going to mention the state of the city by Bay City. Also, I think uh it kind of goes a little bit with uh celebrating our successes and transparency and community involvement. I think that'd be a great thing for the city to start doing the state something I'm looking forward to. And two, and more importantly, I would like to see the city manager get us a clock that works. We're two meetings in a row. It doesn't work. And uh that's all I got with that. Oh, move. We offer to pay the bills. Send us.

Yes. Councelor Oinger. Hi. Councelor Bashard. Hi. Councelor Reynolds. Hi. Hi. Councelor Chris. Councelor. Okay. Pay the bills. doesn't