city of the dalles · the dalles historical landmarks commission is pleased to present its annual...

OFFICE OF THE CITY MANAGER COUNCIL AGENDA

AGENDA

REGULAR CITY COUNCIL MEETING January 22, 2018

5:30 p.m.

CITY HALL COUNCIL CHAMBER 313 COURT STREET

THE DALLES, OREGON

1. CALL TO ORDER

2. ROLL CALL OF COUNCIL

3. PLEDGE OF ALLEGIANCE

4. APPROVAL OF AGENDA

5. PRESENTATIONS/PROCLAMATIONS

A. Tourism Report – Lisa Farquharson, CEO Chamber of Commerce

B. Historic Landmarks Annual Report – Dawn Hert, Senior Planner

6. AUDIENCE PARTICIPATION

During this portion of the meeting, anyone may speak on any subject which does not later appear on the agenda.Five minutes per person will be allowed. If a response by the City is requested, the speaker will be referred tothe City Manager for further action. The issue may appear on a future meeting agenda for City Councilconsideration.

7. CITY MANAGER REPORT

8. CITY ATTORNEY REPORT

9. CITY COUNCIL REPORTS

10. CONSENT AGENDA

Items of a routine and non-controversial nature are placed on the Consent Agenda to allow the City Council tospend its time and energy on the important items and issues. Any Councilor may request an item be “pulled”from the Consent Agenda and be considered separately. Items pulled from the Consent Agenda will be placedon the Agenda at the end of the “Action Items” section.

A. Approval of January 8, 2018 Regular City Council Meeting Minutes

CITY OF THE DALLES "By working together, we will provide services that enhance the vitality of The Dalles"

11. PUBLIC HEARINGS

A. Hearing Testimony Regarding Supplemental Budget for Fiscal Year 2017/18

1. Adopting Resolution No. 18-003 Supplemental Budget for FiscalYear 2017/2018, Making Appropriations and AuthorizingExpenditures within Various Funds of the City of The DallesAdopted Budget

12. CONTRACT REVIEW BOARD ACTIONS

A. Consider Contract No. 2017-006 Gitchell Building proposal

13. ACTION ITEMS

A. Resolution No. 18-004 Authorizing Transfers of Budgeted Amounts BetweenDepartments and Categories of the General Fund of the City of The Dalles AdoptedBudget, Making Appropriations and Authorizing Expenditures for the Fiscal YearEnding June 30, 2018

B. Opportunity to Permit, Design and Construct Aquifer Storage and Recovery Systemutilizing Private Funding

15. ADJOURNMENT______________________________________________________________________________

This meeting conducted in a handicap accessible room.

Prepared by/ Izetta Grossman City Clerk

City of The Dalles Historic Landmarks Commission 2017 Annual Report to City Council

The Dalles Historical Landmarks Commission is pleased to present its annual report to City Council. The year 2017 was the City’s twenty-fourth year as a Certified Local Government (CLG). The following activities and accomplishments of The Dalles Historic Landmarks Commission (HLC) are presented for the City Council’s review as required annually by General Ordinance No. 94-1194.

2017 Commission Goals Due to limited funding, a majority of the short-term and long-term goals for the HLC were not met. The few goals that were met were completed with staff and volunteer time as well as budgeted monies for the Pioneer Cemetery.

The short-term goals that were met, or are in the process of being met, are as follows:

• Encourage the restoration and preservation of the Pioneer Cemetery and establishan inventory link/listing on the City’s website.This goal continues to be in the process of being met with our Pioneer CemeteryPreservation Plan implementation. With continued grant assistance from theOregon Commission on Historic Cemeteries and the State Historic PreservationOffice, we hope to continue with the projects at the cemetery. The Commissionplans to keep the goal for the years to come for the continued maintenance andpreservation of our historic Pioneer Cemetery. Budgeted monies and support fromthe City Council has continued to help with preservation and maintenance of thislocal landmark.

• Encourage preservation and re-use of the Waldron-Gitchell Building.The Commission was pleased that the City Council initiated a Request for Proposal(RFP) for the Waldron-Gitchell Building. This RFP encouraged parties interested inrevitalizing or restoring the historic building to submit a proposal for the building.The Commission is hopeful that the building will be restored and maintained in ourhistoric inventory for years to come.

• Support the creation of walking tours and regular historic building open houses.The Commission is pleased at the progress made by the Chamber of Commerceand a team of four local historians: Sandi Bisset, Susan Buce, Mary Davis andCarolyn Wood. The walking tour pamphlet is currently in rough draft form and will becompleted soon. Staff has also been in contact with the Chamber Director on thepossibility of expanding the walking tour map to an interactive mobile app which willassist in bridging the gap with the younger generations. Staff will be looking forpossible granting opportunities to help fund this project.

The long-term and continuous goals that were met, or are in the process of being met, are as follows:

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• Help facilitate educational assistance to help restorers with assessment and otherhistoric preservation needs.This continuous goal has been successful over the years. The local resources arevast and the multiple historic groups have worked together in providing historicalinformation and photos to property owners who are interested in preserving theirhomes and structures.

• Maintaining CLG status.This goal has continued to be met. Assistance for the CLG is made possible withthe semi-annual matching grant from the SHPO for operating funds. The 2018-19granting cycle is now accepting applications. Staff will be working to get thenecessary information and prepare estimates which will be included with theupcoming budget cycle.

• Actively support historic month and local history.This long-term goal has continued over the years. The five-member Commissionand Museum Representative are actively involved in historic preservation andeducation throughout our community.

• Provide regular recognition of historic restorations, including onsiteacknowledgement and media coverage.This long-term goal has continued over the years. The local newspaper and radiostations have been actively reporting the applications and projects that the HistoricLandmarks Commission reviews. In the past year, The Dalles Chronicle hasincluded full color, multi-page stories about Bev and Alan Eagy’s and VictorJohnson’s preservation and restoration projects that have continued over the years.

2018 Commission Goals The Historic Landmarks Commission adopted new goals and objectives for 2018 at the last meeting of 2017. The HLC decided to keep the categories established in 2017 which include Short Term Goals (1-2 years), Long Term Goals (3-5 years) and Continuous Goals. They believe these categories better describe the goals of the Commission.

The following are the new 2018 Historic Landmarks Commission goals and objectives:

Short-Term Goals (1-2 years): • Update Historic Ordinance and Design Standards.• Provide a historic restoration workshop for local homeowners and contractors.• Encourage preservation and re-use of the Waldron-Gitchell Building. Partner with Main

Street on further Downtown restoration project goals.• Encourage the restoration and preservation of the Pioneer Cemetery and establish an

inventory link/listing on the City’s website.• Support the restoration of the Civic Auditorium building.• Support the creation of walking tours and regular historic building open houses.• Encourage preservation and continued use of Rock Fort by using the adopted

Preservation and Maintenance Plan.• Encourage or support addition of a student representative.

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• Encourage preservation and continued use of Rock Fort by using the adoptedPreservation and Maintenance Plan.

Long-Term Goals (3-5 years): • Support the Fort Dalles Museum and Vehicle Storage Display Building.• Support and advocate for the preservation and continued use of The Dalles High School

and Colonel Wright Elementary School.• Encourage continued preservation and compatible infill of Historic Chinatown.

Continuous Goals: • Help facilitate educational assistance to help restorers with assessment and other

historic preservation needs.• Provide regular recognition of historic restorations, including onsite acknowledgement

and media coverage.• Encourage historic restoration for downtown by providing historic background research.• Encourage the collection and preservation of local history, including irreplaceable oral

and written histories.• Update historic inventories and encourage new nominations to local and national registry

districts.• Maintain Certified Local Government status.• Encourage the preservation and restoration of City Hall.• Actively support historic month and local history.• Assist with historic plaque costs and availability.• Increase communication on all Urban Renewal projects, vision and goals.

Administration and Public Assistance Both administration and public assistance were steady in 2017 and continue to be vital activities. Seven (7) Historic Landmarks Commission meetings were held in the year 2017. Three (3) applications were reviewed: Two properties located in the Commercial National Historic District, Clock Tower Ales – replacing non-historic garage doors on alleyway face with period-appropriate doors; and Carpenter Family – former Baker House – removal of the “door to no-where” and replacing with siding and/or window to match. The other application was for a property located in Trevitt’s National Historic District, Bustos Construction – siding replacement on a primary significant home. There were also several requests for minor alterations to historic structures that were reviewed at the staff level. Minor alterations include the addition and placement of signs, repainting historic structures, re-roofing and emergency-type repairs.

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C I T Y o f T H E D A L L E S 313 COURT STREET

THE DALLES, OREGON 97058

__________________________________________________________

(541) 296-5481 FAX (541) 296-6906

AGENDA STAFF REPORT

AGENDA LOCATION: Item #10-A MEETING DATE: January 22, 2018

TO: Honorable Mayor and City Council FROM: Izetta Grossman, City Clerk ISSUE: Approving items on the Consent Agenda and authorizing City staff to sign contract documents. A. ITEM: Approval of the January 8, 2018 Regular City Council Meeting

Minutes. BUDGET IMPLICATIONS: None.

SYNOPSIS: The minutes of the January 8, 2018 Regular City Council meeting have been prepared and are submitted for review and approval.

RECOMMENDATION: That City Council review and approve the minutes of the January 8, 2018 Regular City Council meeting minutes.

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MINUTES

REGULAR CITY COUNCIL MEETING OF

January 8, 2018 5:30 p.m.

THE DALLES CITY HALL 313 COURT STREET

THE DALLES, OREGON

PRESIDING: Mayor Stephen Lawrence

COUNCIL PRESENT: Russ Brown, Linda Miller, Darcy Long-Curtiss, Tim McGlothlin

COUNCIL ABSENT: Taner Elliott

STAFF PRESENT: City Manager Julie Krueger, City Attorney Gene Parker, City Clerk Izetta Grossman, Finance Director Angie Wilson, Public Works Director Dave Anderson, Police Chief Patrick Ashmore, Human Resources Director Daniel Hunter, Assistant to the City Manager Matthew Klebes

Number in attendance: 14

CALL TO ORDER

The meeting was called to order by Mayor Lawrence at 5:30 p.m.

ROLL CALL

Roll call was conducted by City Clerk Grossman, Elliott absent.

PLEDGE OF ALLEGIANCE

Mayor Lawrence invited the audience to join in the Pledge of Allegiance.

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APPROVAL OF AGENDA

Mayor Lawrence amended the agenda removing Presentation from Fort Dalles Forth Committee and adding Action Item # 11-E Central Oregon Animal Friends/Home At Last proposal.

It was moved by Long-Curtis and seconded by McGlothlin to approve the agenda as amended. The motion carried, Elliot absent.

CITY ATTORNEY REPORT

City Attorney Gene Parker reported he was working on revising the policies and procedures for the Public Records Requests to meet the requirements of the new law that went into effect January 1, 2018.

He said the codification process was nearing completion from the City’s standpoint. He said one more clean-up ordinance would be coming before Council in February. Parker said the completion target date was April 1.

CITY COUNCIL REPORTS

Councilor McGlothlin reported attending:

• Blue Zone informational meeting at the Discovery Center.• Attended a Columbia Gorge Airport board meeting Dec. 15• Attended the Native American Christmas Dinner at CGCC De. 16• Historical Landmark Commission meeting Wed Dec. 28th 4:00• Stopped by police station for a visit with Chief Ashmore and a showing of the new police

cruiser.

He said he would attend:

• Tomorrow morning, a meeting will be convened between the new airport managers,operators and Klickitat County commissioner Sauter.

• Friday, a blue zone meeting is planned at the new office.

He Welcomed Mod Pizza to The Dalles.

McGlothlin wished everyone a Happy New Year.

Councilor Miller reported on attending the Household Hazardous Waste meeting. She said recycling was the topic of the meeting. She said Department of Environmental Quality was at the

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meeting; the DEQ would be setting parameters for recycling. She said recycling was a nationwide issue.

Mayor Lawrence reported on attending: • Newly formed Transportation Board under Mid Columbia Economic Development

District. He said he was the Chair and they were working on grant funding to improveLINK, fixed routes and improving transportation options in the Gorge.

• Spoke at Governmental Affairs• Many meetings with Home At Last• Attended a meeting on homeless issues and received a letter from a college student with

ideas regarding the homeless issue.

CONSENT AGENDA

Councilor Long-Curtiss asked that item C. Mayors Appointments be pulled from the consent agenda.

It was moved by Brown and seconded by Miller to approve the Consent Agenda as amended. The motion carried, Elliott.

Items approved by Consent Agenda were: 1) Approval of December 11, 2017 Regular City Council Meeting Minutes; 2) Authorize Surplus of Various Police Department Equipment, and Legal Department Equipment for Donation.

ACTION ITEMS

Approval of Columbia Gorge Regional Airport Fixed Base Operator Lease Agreement

Assistant to the City Manager Klebes reviewed the staff report.

City Attorney Parker reviewed the amendments to the agreement.

It was moved by Brown and seconded by Miller to accept the Lease between the City of The Dalles, Klickitat County, and Hood Tech Corp. Aero Inc dba TacAero, as amended and authorize Mayor and City staff to sign said Lease, contingent on approval from Klickitat County. The motion carried, Elliott absent.

Approval of Columbia Gorge Regional Airport Manager Contract


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It was moved by Miller and seconded by Brown to accept the Airport Management Agreement between the City of The Dalles, Klickitat County, and Aviation Management Services, LLC and authorize the Mayor and City Staff to sign said Agreement contingent upon approval from Klickitat County. The motion carried, Elliott absent.

Approve of Resolution No.18-001 Approving an Enterprise Zone Extended Abatement Agreement with Bearing Point Holdings


It was moved by McGlothlin and seconded by Brown to adopt Resolution No. 18-001 Approving an Extended Enterprise Zone Tax Abatement Agreement Between the Sponsors of The Dalles/Wasco County Enterprise Zone and Bearing Point Holding, LLC, contingent on approval by Wasco County. The motion carried, Elliott absent.

Approval of Special Ordinance No. 18-578 Century Link Franchise Agreement

City Attorney Parker reviewed the staff report.

Mayor Lawrence asked if Council wanted the Special Ordinance read in full. It was the consensus of Council to not have it read in full.

City Clerk Grossman read Special Ordinance No. 18-578 by title, only.

It was moved by Long-Curtiss and seconded by Miller to adopt Special Ordinance No. 18-578 by title only. The motion carried, Elliott absent.

Consideration of Funding Request Central Oregon Animal Friends/Home At Last

City Manager Julie Krueger reviewed the staff report.

Councilor Brown said he was concerned that no strings were attached to the one-time contribution.

City Manager Krueger said Central Oregon Animal Friends had a successful track record.

Mayor Lawrence said the board members from each organization met and discussed the proposal. He said the Home At Last board was comfortable with this transition. He said the board members of Central Oregon Animal Friends were all from The Dalles.

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It was moved by Miller and seconded by McGlothlin to approve a one-time contribution to Central Oregon Animal Friends in the amount of $25,000 to be paid from the contingency fund. The motion carried, Elliott absent.

Resolution No. 18-002 Concurring with the Mayors Appointments to Various Committees

Councilor Long-Curtiss said she didn’t know anything about Joe Barcott.

Mayor Lawrence introduced Mr. Barcott.

Mr. Barcott said he was a retired attorney. He said he had served on a planning commission in Colorado for several years.

Long-Curtiss questioned the reappointment of John Fredrick to the Urban Renewal Agency. She said he, by his own admission didn’t understand the process. She said he was confrontational. Long-Curtiss said she felt he wasn’t the best fit for the Agency Board.

Miller said she also served on the Urban Renewal Board and felt that Mr. Fredrick had a different perspective, but was a valuable member.

It was moved by McGlothlin and seconded by Miller to approve Resolution No. 18-002 Concurring with the Mayor’s Appointments to Various Committees. The motion carried, Long- Curtiss voting against, Elliot absent.

Being no further business, the meeting adjourned at 6:17 p.m. ___________________________________________________________________________ Submitted by/ Izetta Grossman City Clerk

SIGNED: ____________________________________ Stephen E. Lawrence, Mayor

ATTEST: ____________________________________ Izetta Grossman, City Clerk

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C I T Y o f T H E D A L L E S313 COURT STREET


__________________________________________________________(541) 296-5481

FAX (541) 296-6906

AGENDA STAFF REPORT

AGENDA LOCATION: Public Hearing #11-A

MEETING DATE: January 22, 2018

TO: Honorable Mayor and City Council

FROM: Angie Wilson, Finance Director

ISSUE: Resolution No. 18-003 Adopting a Supplemental Budget for Fiscal Year 2017/2018, Making Appropriations and Authorizing Expenditures within Various Funds of the City of The Dalles Adopted Budget.

BACKGROUND: Oregon Budget Law recognizes that after the beginning of the fiscal year, changes in appropriations in the budget sometimes become necessary, and so allows for those changes via supplemental budgets and budget amendments. Supplemental budgets add funds to existing budgets, while budget amendments move already budgeted funds between categories of the same fund without adding to the fund’s total budget. A Public Hearing is required for any supplemental budget that changes a fund by more than 10%. The proposed supplemental budget is less than 10% of the operating budget of either of the affected funds, so a Public Hearing is not required.

A notice of the Supplemental Budget is required to be published, and that notice is scheduled to be printed in The Dalles Chronicle on Sunday, January 14, 2018.

Resolution No. 18-003 is for a Supplemental Budget for various Public Works Funds and the Airport Fund.

1) The City’s Street Fund (005) has realized an addition $763,859 in BeginningFund Balance, with proposed allocations of $10,000 to Interfund Transfer to thePublic Works Reserve Fund(009) and $753,859 to be allocated to additionalstreet maintenance projects.

2) The City’s Public Works Reserve Fund (009) has realized an additional$10,000 in Interfund Transfer In from the City’s Street Fund, with a proposedallocation to purchase a used peanut roller.

3) The City’s Water Fund (051) has realized addition $261,737 in Beginning

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Fund Balance, with proposed allocation to Interfund Transfer to the Water Reserve Fund (053) for the Lone Pine Well Project.

4) The City’s Water Capital Reserve Fund (053) has realized additional revenuefrom additional Beginning Fund Balance of $543,690 and additional InterfundTransfer of $261,737 in from the City’s Water Fund, proposed to be allocated tothe Lone Pine Well Project.

5) The City’s Wastewater Fund (055) has realized an additional $344,512 inBeginning Fund Balance, with proposed allocations to Interfund Transfer to theSewer Plant Construction Fund (057), and;

6) The City’s Sewer Special Reserve Fund (56) has realized an additional$845,603 in Beginning Fund Balance, with proposed allocation for the 4th StreetGrade Sanitary Sewer Project and West 2nd Street Project, and;

7) The City’s Sewer Plant Construction Fund (57) has realized an additional$344,512 in Interfund Transfer in from the City’s Wastewater Fund (055) and aadditional $3,600,000 in Utility Bond Revenue, proposed to be allocated to theWWTP Clarifier/Primary Filter project, and;

8) The City’s Airport Fund has realized an addition $535,657 in Beginning FundBalance and an addition $100,000 from Contigency to be allocated to the FlexBuilding project;

BUDGET IMPLICATIONS: The Supplemental Budget Resolution No. 18-003 increases the Street Fund budget by $763,859; the Public Works Reserve Fund by $10,000; the Water Fund by $261,737; the Water Capital Reserve Fund by $805,427; the Wastewater Fund by $344,512; the Sewer Special Reserve Fund by $845,603; the City’s Sewer Plant Construction Fund by $3,944,512; and the Airport Fund budget by $635,657

ALTERNATIVES: A. Staff Recommendation: Move to Adopt Resolution No. 18-003 Adopting

a Supplemental Budget for Fiscal Year 2017/2018, MakingAppropriations and Authorizing Expenditures within Various Funds ofThe Dalles Adopted Budget.

B. Council may choose to decline to make any changes to the adopted budget atthis time.

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RESOLUTION NO. 18-003

A RESOLUTION ADOPTING A SUPPLEMENTAL BUDGET FOR FISCAL YEAR 2017/2018, MAKING APPROPRIATIONS AND

AUTHORIZING EXPENDITURES FROM AND WITHIN VARIOUS FUNDS OF THE CITY OF THE DALLES ADOPTED BUDGET.

WHEREAS, the City’s Street Fund (005) has realized an additional $763,859 in Beginning Fund Balance, with proposed allocations of $10,000 to Interfund Transfer to the Public Works Reserve Fund(009) and $753,859 to be allocated to additional street maintenance projects, and;

WHEREAS, City’s Public Works Reserve Fund (009) has realized an additional $10,000 in Interfund Transfer In from the City’s Street Fund, with a proposed allocation to purchase a used peanut roller, and;

WHEREAS, the City’s Water Fund (051) has realized an additional $261,737 in Beginning Fund Balance, with proposed allocation to Interfund Transfer to the Water Reserve Fund (053) for the Lone Pine Well Project, and;

WHEREAS, City’s Water Capital Reserve Fund (053) has realized additional revenue in Beginning Fund Balance of $543,690 and additional Interfund Transfer of $261,737 in from the City’s Water Fund, proposed to be allocated to the Lone Pine Well Project, and;

WHEREAS, City’s Wastewater Fund (055) has realized an additional $344,512 in Beginning Fund Balance, with proposed allocations to Interfund Transfer to the Sewer Plant Construction Fund (057), and;

WHEREAS, the City’s Sewer Special Reserve Fund (56) has realized an additional $845,603 in Beginning Fund Balance, with proposed allocation for the 4th Street Grade Sanitary Sewer Project and West 2nd Street Project, and;

WHEREAS, the City’s Sewer Plant Construction Fund (57) has realized an additional $344,512 in Interfund Transfer in from the City’s Wastewater Fund (055) and a additional $3,600,000 in Utility Bond Revenue, proposed to be allocated to the WWTP Clarifier/Primary Filter project, and;

WHEREAS, the City’s Airport Fund has realized an additional $535,657 in Beginning Fund Balance and additional $100,000 from Contingency to be allocated to the Flex Building project;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS FOLLOWS:

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Section 1. The City Council hereby adopts the Supplemental Budget for FY 17/18, increasing revenues and making appropriations as follows.

Fund Resource Amount Requirement AmountStreet Fund (005)

Public Works Dept Program

753,859

Interfund Transfers 10,000

2,396,566

305,625

Total New Resources763,859

Total New Requirements 763,859

New Total all Fund 005 Resources

2,794,191 New Total All Fund 005 Expenditures

2,794,191

Fund Resource Amount Requirement AmountPublic Works Reserve Fund (009)

Transfers In 10,000Public Works Dept Program

10,000

Total New Resources 10,000Total New

Requirements10,000

587,485


587,485 New Total All Fund 009 Expenditures

587,485

Fund Resource Amount Requirement AmountWater Fund (051)

Additional Beginning Fund Balance 261,737 Interfund Transfers 261,737


Total New Requirements 261,737

2,135,453



5,791,664

Total New Public Works Department

New Total Interfund Transfers

Summary of Supplemental Budget-Line Item Detail

Additional Beginning Fund Balance

763,859

Total New Street Public Works Program Requirements


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Fund Resource Amount Requirement AmountWater Capital Reserve Fund (053)


543,690 Public Works Dept Program

805,427



Requirements805,427

8,326,994



9,161,817

Fund Resource Amount Requirement AmountWaste Water Fund (055)


344,512Public Works Dept Program

344,512


Requirements344,512

2,713,190



6,095,152

Fund Resource Amount Requirement AmountSewer Special Reserve Fund (056)


845,603 Interfund Transfers

845,603


Total New Requirements

845,603

3,081,583 New Total all Fund 056

Resources3,463,741

New Total All Fund 056 Expenditures

3,463,741


New Total Public Works Department


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Section 2. This Resolution shall become effective upon adoption by the City Council and shall remain in effect until receipt and acceptance of the FY 17/18 audit report.

PASSED AND ADOPTED THIS 22nd DAY OF JANUARY, 2018. Voting Yes, Councilors: ______________________________________________________

Voting No, Councilors: ______________________________________________________

Absent, Councilors: ______________________________________________________

Abstaining, Councilors: ______________________________________________________

AND APPROVED BY THE MAYOR THIS 22nd DAY OF JANUARY, 2018.

SIGNED: ATTEST:

____________________________ ____________________________ Stephen E. Lawrence, Mayor Izetta Grossman, City Clerk

Fund Resource Amount Requirement AmountSewer Plant Construction Fund (057) Grant Revenue

3,600,000 Public Works Dept Program

3,944,512


Total New Resources 3,944,512Total New

Requirements3,944,512

13,352,426New Total all Fund 057

Resources13,907,741


13,907,741

Fund Resource Amount Requirement AmountAdditional Beginning Fund Balance

535,657Airport Deparment Program

635,657

Contingency 100,000


Requirements635,657

2,415,104New Total all Fund 061

Resources2,741,823


2,741,823



Airport Fund (061)

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__________________________________________________________(541) 296-5481

FAX (541) 296-6906

AGENDA STAFF REPORT

AGENDA LOCATION: Contract Review Board #12-A



FROM: Matthew Klebes, Assistant to the City Manager

ISSUE: Gitchell/Waldron Drug Building Contract No. 2018-006

BACKGROUND: The City of the Dalles Request for Proposals (RFP) for the Waldron Drug/Gitchell Building Contract No. 2018-006 closed on October 26, 2017. This RFP was open for 90 days and was posted in The Dalles Chronicle for two Sundays and five different posting sites in Oregon and Washington. One response was received.

A sub-committee was formed to interview the one response with a prepared set of questions. This sub-committee then independently scored the response based on criteria described in the RFP. While the respondent had ample experience with the preservation and restoration of historic structures, the respondent lacked direct experience with the relocation of a structure, and there is no financing currently in hand although potential small grants were identified.

The response received contained three options:

Option 1: Stabilize, restore, and re-use the Waldron Drug/Gitchell Building at the current location

Option 2: Move the Waldron Drug/Gitchell Building 20 feet to the north. Stabilize, restore, and re-use the building at the new location

Option 3: Move the Waldron Drug/Gitchell Building to the south side of East First Street. Stabilize, restore, and re-use the building at the new location

Under each of these options, a non-profit would be formed that would enter into an agreement with the City that specifies the expectations, requirements, timeline, and

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conditions of the parties.

Under Option 3, a possible location is immediately to the West of the Baldwin Saloon. Option 3 is the only option that directly addresses the railroad right of way, building proximity to rail way, public and private access, and the building condition as detailed in the RFP. It is also the most ambitious and costly option for the respondent. The respondent’s preferred choice was Option 1, with exploration of the following 2 options if Option 1 is ultimately determined to be impossible.

The City Attorney has expressed an opinion there are several issues associated with the concept of conveying the Gitchell Building to a non-profit entity. One of the first issues of concern relates to whether the City can effectively transfer its risk of liability associated with the conditions existing in the building, and other risks of liability associated with potential development of the building, including the removal of the building to a new site. The City Attorney has indicated that the City would likely have to consider entering into some form of an agreement with the non-profit entity.

This type of agreement would include a schedule of performance. The agreement would include several conditions precedent to the transfer of ownership of the building to the non-profit entity. These provisions would include compliance with land use and historic building ordinances; demonstration of financial feasibility of the project and evidence of financial plan to complete the project; provisions for environmental reports of the existing building site or any proposed alternative site for the building; approval of construction and development plans for the building; indemnification provisions and general liability insurance coverage to be provided by the non-profit entity; and default provisions including pre-conveyance and post-conveyance remedies for the City and the non-profit entity.

Below is an excerpt from an Agenda Staff Report dated May 8, 2017 that summarizes conditions and findings from previous studies of the building:

“The ASCE-31 Structural Evaluation of the building conducted April 2009 notes,

“The south face of the building is approximately 12 feet from the centerline of the north Union Pacific Railroad (UPRR) track…If this clearance is to be maintained relative to occupied building space, an alternative to address this would be to provide a new interior shear wall at the 25-foot location…, and leave the southern portion of the building unoccupied, but with the historic façade refinished and intact.” (Page 6 KPFF Study)

There is a possibility this space could be used for storage, stairways, or other uses where people are only present for short durations. This determination has yet to be made.

The City of The Dalles has deemed it unsafe to enter the building based on conditions observed by City staff, in particular due to concern that the first floor joists are not attached to the wall, however, the KPFF study notes, “Construction is typical of the era, with no supplemental connectors, including no attachment of

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the joists or diaphragm to the exterior walls.” This concludes that although the joists are not attached to the walls, which is of concern, this dynamic is not due to deteriorating conditions within the building. (Page 5 KPFF Study) However, several joist ends, in particular over the East entrance, have substantially deteriorated over time. This condition also prevents City staff from monitoring and changing the filters for the HVAC system.

Summary of Reports Studies completed:

• December 29, 2008 Peter Meijer Architect, PC“Limited Exterior Building Assessment”

Conclusions: From the ground visual assessments do not paint the complete picture. The building is in fair to poor condition; when the building became unoccupied it is likely stone decay increased due to absence of heating and resulting longer wet periods; some stone repair techniques may require the ghost signs be removed; evaluation of stone integrity and likely needed replacement; application of epoxy-based consolidants may slow decay of stone

• April 27, 2009 Peter Meijer Architect, PC“Revised Exterior Building Assessment” (Includes Petrographic Analysis byWillamette Geological Service and Cost Estimates)

Conclusions from Petrographic Analysis: -Exterior Stone: Highly porous, poorly cemented, poorly sorted (made of upmaterials of a variety of sizes)* sandstone. Recommended stabilization of rockfabric with intergranular cement or replacement with stone with betterengineering qualities-Interior Stone: Volcanic rock with considerable strength that will be resistant tomoisture and surface degradation, stronger crystalline fabric. Overall this stone isof good quality.-Cost Estimate: $780,000.00 general repairs and seismic strengthening, no tenantimprovements, seismic upgrades accounts for $116,000.00 of this amount.

*Descriptors such as, “poorly cemented” relate to the naturally occurringprocess of rock formation and not to human building techniques

• April 2009 KPFF Consulting Engineers“Seismic Evaluation of Existing Buildings, Life Safety Performance Level Tier 1Screening Phase evaluation”

Conclusions: Summary of prior studies and mathematical engineering data; deficiencies that could result in partial or total collapse of the structure in a major seismic event; potential concealed problems within construction make estimates difficult; limited excavation supports the assumption that the building is constructed on bedrock; fire damage apparent on mezzanine level.

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• January 7, 2015 KPFF Consulting EngineersBuilding Walk Through

Conclusions: Possible corollary between new landscape drainage patterns and moisture migration on exterior stone. ASR dated October 21, 2015 states that Staff confirmed that no irrigation lines operate in the area; installation of a sump pump recommended, regular replacement of air filters suggested.”

Balancing the objectives of cost effectiveness, safety, and objectives of Statewide Planning Goal 5 regarding historic preservation are challenging. Selecting one of the proposed options to further develop may be the most cost effective in terms of City expenditures and fulfills historic preservation goals, but the success of the project is dependent on unsecured financing and timeline. The Council could reject the proposed options and, if electing to proceed with demolition, would have to assume the costs of demolition itself and the loss of one of the oldest historic buildings in the downtown.

BUDGET IMPLICATIONS: If Council selects one of the options under the response recevied, staff time will be required to craft an agreement.

Rejection of all three options and proceeding with demolition will require a detailed quote and demolition plan to be obtained. Preliminary cost estimates have ranged from $35,000-$55,000 based on industry demolition cost per foot ranges. Due to the historic nature of the building and building foundation that may impact the railroad bed these costs could be higher. An accurate demolition cost estimate could be budgeted in the FY2018/19.

COUNCIL ALTERNATIVES:

1. Staff recommendation: Move to direct staff to craft an agreement for Option 3that addresses liability, location, and timeline to be brought back to Council toreview and, concurrently, direct staff to acquire a detailed demolition costestimate.

2. Reject all options of the one response submitted to Contract No. 2018-006 anddirect staff acquire a detailed demolition cost estimate.

3. Direct staff to craft an agreement for Option 1 to be brought back to Council toreview and, concurrently, direct staff to acquire a detailed demolition costestimate.

4. Direct staff to craft an agreement for Option 2 to be brought back to Council toreview and, concurrently, direct staff to acquire a detailed demolition costestimate.

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__________________________________________________________(541) 296-5481

FAX (541) 296-6906

AGENDA STAFF REPORT

AGENDA LOCATION: Action Item #13-A



FROM: Angie Wilson, Finance Director

ISSUE: Resolution No. 18-004 Authorizing Transfers of Budgeted Amounts Between Categories of The General Fund of the City Of The Dalles Adopted Budget, Making Appropriations and Authorizing Expenditures for Fiscal Year Ending June 30, 2018

RELATED COUNCIL GOAL: Balanced Budget

BACKGROUND: Oregon Budget Law recognizes that after the beginning of the fiscal year, changes in appropriations in the budget sometimes become necessary and so allows for those changes via supplemental budgets and budget amendments. Supplemental budgets add funds to existing budgets, while budget amendments move already budgeted funds between categories of the same fund without adding to the fund’s total budget.

The proposed resolutions contain the following items:

Resolution No. 18-004 transfers $61,390 from the Contingency line item to cover the following items:

1) $55,000 is needed from the Contingency Fund to the City Council Department tocover the Contracted Services for $30,000 for the Columbia Gorge Community Collegefor Campus Housing Study, which was approved by Council on November 13, 2017 and$25,000 for Central Oregon Animal Friends/Home At Last proposal that was approvedby Council on January 8, 2018.

2) $499 is needed from the General Fund Contingency to compensate the VEBAcontribution changes in the City Manager Department for changes made by City Councilat the May 8, 2017 meeting.

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3). $383 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Human Resource Department for changes made by City Council at the May 8, 2017 meeting.

4). $325 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Planning Department for changes made by City Council at the May 8, 2017 meeting.

5). $2,837 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Police Department for changes made by City Council at the May 8, 2017 meeting.

6). $2,346 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Finance and Utility Department for changes made by City Council at the May 8, 2017 meeting.

BUDGET IMPLICATIONS: Resolution No. 18-004 transfers currently budgeted amounts, and does not have any impact on the total budget of the General Fund.

COUNCIL ALTERNATIVES:

1. Staff recommendation: Move to adopt Resolution No. 18-004 AuthorizingTransfers of Funds between Departments of the General Fund of the City ofThe Dalles Budget, Making Appropriations and Authorizing Expenditures forFiscal Year Ending June 30, 2018.

2. Direct staff to make changes to the proposed resolutions and bring the resolutionsback to a future Council meeting for consideration.

3. Decline to take action.

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RESOLUTION NO. 18-004

A RESOLUTION AUTHORIZING TRANSFERS OF BUDGETED AMOUNTS BETWEEN CATEGORIES OF THE GENERAL FUND OF THE CITY OF THE

DALLES ADOPTED BUDGET, MAKING APPROPRIATIONS AND AUTHORIZING EXPENDITURES FOR THE FISCAL YEAR ENDING JUNE 30, 2018.

WHEREAS, during the budget year certain funds may experience expenditures above approved category limits; and

WHEREAS, Oregon Budget Law recognizes these events and allows for transferring of funds between approved category limits within and between funds; and

WHEREAS, $55,000 is needed from the Contingency Fund to the City Council Department to cover the Contracted Services for $30,000 for the Columbia Gorge Community College for Campus Housing Study, which was approved by Council on November 13, 2017 and $25,000 for Central Oregon Animal Friends/Home At Last proposal that was approved by Council on January 8, 2018; and

WHEREAS, $499 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the City Manager Department for changes made by City Council at the May 8, 2017 meeting.

WHEREAS, $383 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Human Resource Department for changes made by City Council at the May 8, 2017 meeting.

WHEREAS, $325 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Planning Department for changes made by City Council at the May 8, 2017 meeting.

WHEREAS, $2,837 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Police Department for changes made by City Council at the May 8, 2017 meeting.

WHEREAS, $2,346 is needed from the General Fund Contingency to compensate the VEBA contribution changes in the Finance and Utility Department for changes made by City Council at the May 8, 2017 meeting.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS FOLLOWS:

Section 1. Authorizing Budget Transfers. The City Council hereby authorizes the following transfers of funds between budgeted categories and funds:

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RESOURCES FUND OR DEPT. BUDGETED NEEDED REALLOCATED

GENERAL FUND (001)from General Fund Contingency $ 593,163 $ 531,773 - $ 61,390

to City Council $ 235,772 $ 290,772 + $ 55,000

to City Manager $ 349,425 $ 349,924 + $ 499

to Human Resource Department $ 206,846 $ 207,229 + $ 383

to Planning Department/Ec Development/

Code Enforcement $ 686,374 $ 686,699 + 325

to Police Department $ 3,927,566 $ 3,930,403 + 2,837

to Finance and Utility $ 570,188 $ 572,534 + 2,346

Section 2. Effective Date. This Resolution shall become effective upon adoption by the City Council and shall remain in effect until receipt and acceptance of the FY17/18 audit report.

PASSED AND ADOPTED THIS 22nd DAY OF JANUARY, 2018.

Voting Yes, Councilors: ______________________________________________________ Voting No, Councilors: ______________________________________________________ Absent, Councilors: ______________________________________________________ Abstaining, Councilors: ______________________________________________________

AND APPROVED BY THE MAYOR THIS 22nd DAY OF JANUARY, 2018.

SIGNED: ATTEST:

____________________________ ____________________________ Stephen E. Lawrence, Mayor Izetta Grossman, City Clerk

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__________________________________________________________(541) 296-5481

FAX (541) 296-6906

AGENDA STAFF REPORT

AGENDA LOCATION: Action Item #13-B



FROM: Dave Anderson, Public Works Director

ISSUE: Consideration of developing Aquifer Recover and Storage (ASR) program to expand municipal water supplies

BACKGROUND: The existing plans for meeting the future increased water demands of the City are centered around expansion of our surface water supplies from The Dalles Municipal Watershed, and then ultimately utilization of water from the Columbia River in the more distant future. These plans were re-evaluated and supported during the 2006 update of the City’s Water Master Plan through the work of a public advisory committee. Water rights to expand the capacity of Crow Creek Dam were obtained in 1999, and that project would increase the volume of water stored in the reservoir from 267 to 640 million gallons. Expansion of the surface water supplies would also require an expansion of the capacity of the Wicks Water Treatment Plant. The 2006 Water Master Plan estimated the costs to raise the height of Crow Creek Dam and expand the water treatment plant at $17.5 million; construction costs have increased about 32% since 2006 so the current estimated costs for these improvements would be about $23 million. It should also be noted that current federal regulations make utilization of water from the Columbia River very difficult.

The Dalles is located within a state-designated Critical Groundwater Area which was established in 1966 to mitigate declining groundwater levels that were resulting from over-pumping of local aquifers. The existence of the Critical Groundwater Area means that the City cannot obtain new water rights for new wells that would use native groundwater. The City does have 2000 gallons per minutes (gpm) of unused groundwater right, which translates to about 2.9 million gallons per day (mgd), from the abandoned well which was located in the basement of City Hall that could be transferred to and used for a new well if desired.

There exists another technology for storing water called Aquifer Storage and Recovery (ASR). Under this concept, surface water is treated during periods of abundant supply and low demand, essentially during the winter, and pumped down into the aquifer for

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later recovery to meet summertime demands. With ASR, the aquifer is used as a reservoir instead of building a dam on a stream. Depending on the capacity of the aquifer, water can often be stored from year to year thereby building up the amount stored to help meet demands during periods of drought and to assist in meeting the water supply challenges associated with climate change. In addition, water quality in the aquifer is often improved for industrial uses by incorporating the treated surface water which has a lower mineral content into the groundwater. This technology is being used or evaluated by more and more utilities in Oregon including Salem, Beaverton, Tualatin Valley, Clackamas River Water, Tigard, Portland and Pendleton as a lower cost and effective alternative to constructing surface water storage systems.

While ASR is not a new concept, the state of the science has improved significantly over the last 15 years. ASR was originally considered locally in a joint study conducted by the US Geological Survey (USGS) and the City in 1967. A high-level feasibility evaluation was also conducted for the City by Golder Associates in 1999. While both studies indicated preliminarily favorable results from a technical standpoint, uncertainty about state and federal groundwater quality regulations and water right issues prevented the City from moving forward with the concept or incorporating it into future supply plans. More recently, state statutes have now been adopted and regulations by the Oregon DEQ (water quality) and Water Resources Department (water rights) have been implemented that support ASR. With a favorable regulatory environment, a need to plan for climate change, and significant industrial development occurring in The Dalles at rates not previously seen, it is an appropriate time to revisit ASR as a water supply alternative to expand the capacity and improve the reliability and robustness of the City municipal water supply.

Earlier this year, Design LLC contracted with a well-respected Oregon water supply consulting firm, GSI Water Solutions Inc, to conduct a detailed evaluation of the potential for ASR in The Dalles. Staff notified the City Council of this effort through the weekly City Manager’s report on May 12, 2017. GSI is a firm that the City has worked with for many years related to water rights and, most recently, development of the City’s Water Management and Conservation Plan. GSI also has a very good working relationship with the Oregon Water Resources Department on water right issues including the permitting, development and implementation of ASR. City staff was intimately involved in the evaluation through the provision of historical data, water sampling, emails, phone calls, meetings and workshops. The results of the evaluation are quite promising and summarized below.

• The physical characteristics of the aquifer are favorable for the storage andrecovery of additional water supplies.

• The water qualities of the surface and groundwater supplies are compatible.• The City has capacity within its existing water rights, surface water supplies, and

water treatment systems to implement ASR and store between 244 and 539million gallons annually. For context, the City currently supplies about 1.2 billiongallons of water annually to its customers and Crow Creek Reservoir has thecapacity to store 267 million gallons of water.

The next steps of implementing an ASR program would be focused in two areas. First,

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from the regulatory side, the City would need to apply to the Water Resources Department to amend its water rights to include ASR, and then to obtain what is called a “limited license” to do a full scale test of ASR. Under a limited license, testing is done to determine if recovery of the water injected into the aquifer is feasible; this testing may go on for a number of years. Once the viability of ASR is demonstrated, an ASR permit can be issued.

The second aspect of implementing an ASR program would be to design and construct the system. The design for the project would need to address the following issues:

• Identify where to locate the new ASR wells.• Acquire property, if needed.• Develop detailed specifications of the wells and appurtenances to be constructed.• Develop the details of connecting the new wells to the existing distribution

system.• Identify and design any distribution system improvements needed to carry larger

volumes of water from the new ASR sources to the areas of water demand,primarily the Port Industrial Area.

Because there are a number of issues to be addressed and potential trade-offs and efficiencies to be considered – capacity, location, connections, trade-off in costs between potential well locations and needed piping/appurtenances, operational requirements, etc. – staff believes that there are considerable opportunities for innovation in a project of thistype and magnitude. As such, and based upon the excellent experience we’re having withthe current Wastewater Treatment Plant Upgrade project, staff is recommending use ofanother progressive design-build contract to design and construct an ASR system.

Design LLC is a growing local industry with an essential need for a very reliable, uninterrupted and robust water supply. As such, it paid the full cost of conducting the most-recent ASR feasibility study. Given the promising results of the study, Design LLC would like to assist the City in moving forward with ASR implementation. To that end, Design LLC is proposing to enter into a development agreement with the City whereby Design LLC would pay for the permitting, design engineering, construction and start-up of an ASR program and associated infrastructure. Under the proposed concept, the City would issue and administer all contracts for the design and construction of the infrastructure systems, and all water system improvements would be owned and operated by the City as part of its water utility, just as if the City were paying for the work. The anticipated project is currently envisioned to ultimately include construction of two new ASR wells, each with a production capacity of about 2000 gpm. The design and construction of each new well is conceptually estimated to cost about $2 million each. A 2006 engineer’s estimate of the costs to construct distribution system improvements to add capacity from the Garrison Reservoir to the Port Industrial Area was $1.7 million; that cost could now be about $2.2 million.

Design LLC has also proposed to contract further with GSI Water Solutions to perform the work necessary to amend the City’s water rights, obtain a limited license, and ASR permits.

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Staff recommends that a yet-to-be-negotiated development agreement include a provision that the costs incurred by Design LLC for construction of an ASR system qualify as credits against future Water SDCs, as allowed by the City’s SDC Ordinances for construction of off-site infrastructure improvements that add capacity to the water system.

If Council supports the concept of developing and implementing an ASR program now, staff time would be required to negotiate the terms of a related development agreement with Design LLC for Council’s consideration. Once Council approves a final development agreement, staff time would be required to make findings for Council’s adoption by resolution allowing use of progressive design-build contracting, develop a progressive design-build contract, solicit for and select a design-build team, and administer the contracted work. Council authorization would be required for award of the progressive design-build contract, and any subsequent phases of work just as has been done with the wastewater treatment plant project.

BUDGET IMPLICATIONS: If approved, it is anticipated that the primary funds expended would be those provided by Design LLC for the development of an ASR program. The City may incur some incidental expenses associated with printing and copying of contracting documents, advertising the contract for submission of Statements of Qualification and Proposals, and conducting Proposal Workshops. It is estimated that these costs will be less than $2000 from the Water Utility Fund.

COUNCIL ALTERNATIVES

1. Staff Recommendation: Move to authorize staff to negotiate a developmentagreement with Design LLC to permit, design, construct, and start-upinfrastructure improvements necessary to implement an Aquifer Storage andRecovery system utilizing a progressive design-build contracting method.

2. Alternative 1: Authorize staff to negotiate a development agreement with DesignLLC to permit, design, construct, and start-up infrastructure improvementsnecessary to implement an Aquifer Storage and Recovery system utilizing atraditional design-bid-build contracting method.

3. Alternative 2: Deny authorization to negotiate a development agreement withDesign LLC and provide alternative direction to staff.

Aquifer Storage Page 4 of 4

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