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City Council Study Session Minutes - PM

Thursday, August 27, 2015

 August 27, 2015
                                                                                                             Medford City Hall, Medford Room
411 West Eighth Street, Medford, Oregon
The Medford City Council Study Session was called to order at 6:00 p.m. in the Medford Room of the Medford City Hall on the above date with the following members and staff present:
Mayor Gary Wheeler; Councilmembers Clay Bearnson, Daniel Bunn, Tim Jackle, Kevin Stine, Michael Zarosinski
City Manager Pro Tem Bill Hoke; City Attorney Lori Cooper; City Recorder Karen Spoonts; Police Chief Tim George; Deputy City Attorney Kevin McConnell; Public Works Director Cory Crebbin; Planning Director Jim Huber; Finance Director Alison Chan; Senior Planner John Adam
Councilmembers Dick Gordon and Eli Matthews were absent.
Planning Director Jim Huber stated that the purpose of the presentation was to show to Council for feedback (See PowerPoint). There is a Planning Commission hearing on September 10, 2015 regarding this matter. 
Deputy City Attorney Kevin McConnell arrived.  
Mr. Huber noted that Council will determine what areas (zones) they will be allowed in. Senior Planner, John Adam noted that the information is provided to show how they came up with the thought process. We did leave out neighborhood commercial due to the concerns expressed. Councilmember Stine questioned why regular drug stores are allowed in a CSP but we took it out; Mr. Huber noted it was office buildings and the hospitals.
Councilmember Corcoran questioned if the offensive odor applies to each building in a row of buildings; Mr. Huber stated that it can be clarified. Councilmember Stine questioned if we want the City enforcement to be involved in it; Councilmember Bunn noted that it can be tied to the ownership. Councilmember Jackle noted that you could have different owners on one building. Councilmember Bearnson questioned grandfathering and agricultural businesses; Mr. Huber noted that we have only one property like that and it is a vineyard and currently they could not do this. Councilmember Bearnson questioned if we could have a fee schedule; Mr. Huber noted we would not put it this portion of the Code. Councilmember Corcoran questioned if marijuana is consumed in the facility; Mr. Huber stated we would defer to the state law. Mr. Adam did not think it would be allowed as the same rules apply as buying cigarettes. Rules are due January 4, 2016. Councilmember Corcoran questioned if we could disallow it and stated that the state has not addressed this and we should wait on that.
Councilmember Bunn questioned how the home occupation license works.  Mr. Huber noted that it is loose as you can do things that are not allowed in the underlying area. Finance Director, Alison Chan noted the biggest restriction is the number of people coming to your home; another concern is welding which is disallowed. Councilmember Bearnson questioned making brownies at a home; Ms. Chan noted that you would have to have a commercial kitchen. Councilmember Bearnson questioned the high heat cover violate gasses.  Mr. McConnell believed that it did, he also talked about producers that could grow many plants. Councilmember Jackle questioned other special uses which needed a conditional use permit. Councilmember Bearnson questioned if the conditional use permit caused a lot of time for staff.  Mr. Huber noted that the Site Plan and Architectural Commission (SPAC) decisions can be appealed. Mr. Adam would not consider it for laboratories. Councilmember Stine would like a structure that is owned by the same person that we are not called on the complaints. Councilmember Bunn agreed.   Councilmember Corcoran disagreed. Councilmember Zarosinski questioned spacing requirements and this does not cover that; Mr. Huber noted that state law still applies. Mapping was discussed;  Mr. Adam had a map but did not bring it. Councilmember Bearnson questioned licensing, taxing, etc. Councilmember Bunn noted that we have a tax in place. Councilmember Bearnson questioned Ms. Chan for a fee schedule at the business license; Ms. Chan noted that it is doable in the business license section and can be written specifically for marijuana.
Mayor Wheeler questioned if Council agreed that this should proceed to Planning Commission on September 10, 2015.  Councilmember Bunn would like tenants in the building to be addressed with the Planning Commission.
Mr. McConnell stated that if the City Council decides to lift its moratorium, mobile Marijuana Carts will not be allowed within the City. 
Regarding the marijuana nuisance ordinance; 4-plant limitation in residential nuisance ordinance (Section 5.652(2)) (see PowerPoint presentation) Mayor Wheeler questioned size; Mr. McConnell noted the City does not have a limit but he thought the state did. Mr. McConnell questioned if a lot gets four plants no matter if indoors or outdoors; Councilmember Bearnson noted that it was Councilmember Gordon's motion and he thought that is what he wanted.
Marijuana tax is on the books. Medical marijuana dispensaries not taxed at that time. We taxed in anticipation of producers, etc., coming in. House Bill 3400 and Senate Bill 3460. Council will need to choose. Mr. McConnell is talking to the League of Oregon Cities (LOC) on this as well. Tax at 3% is safe and not open to suits.
Councilmember Corcoran questioned if we lift the moratorium does that allow medical marijuana dispensaries; Mr. McConnell stated that it would and he noted that a lot of folks will be coming in for a business license. Councilmember Corcoran questioned the state law and whether it addresses the difference between retail and a medical marijuana dispensary.
New municipal marijuana laws, previously only a violation. Did not anticipate what is happening in the rise of marijuana items. Some will be violations, some will be a crime, and it depends on the form. More information will be provided on this, such as traffic fatalities. Councilmember Jackle questioned the 1,000 feet between anyone offering marijuana; Mr. McConnell questioned Council going too far but 1,000 would be reasonable. Councilmember Bearnson questioned a tax measure to the 3% voters for November; Mr. McConnell will need to talk to the LOC on that. The state is taking care of the safety measure that was a concern of Council. Councilmember Bearnson would be inclined to vote for it if medical marijuana card holders did not have to pay the 3% tax. Councilmember Corcoran questioned the cost associated with putting it on the ballot and a ban on marijuana in the City; Mr. McConnell thought the ban comes from petition. Councilmember Bunn thought we could do it with repealing the ban through the business license procedure. How many signatures would be needed as well?
System Development Charges (SDCs)
Public Works Director Cory Crebbin presented a PowerPoint presentation. Questions to consider: adjustments to SDC - % per year; index SDCs; and change computation methodology to match utility fees.
Councilmember Jackle questioned if there was a way to increase capacity of a street, such as a bike lane; Mr. Crebbin noted that that would depend on the type of street.
Ms. Chan noted that the owner agrees to pay interest at the rate of 8% per annum on the unpaid balance until the bonds are sold.
Councilmember Bunn questioned if we will run into problems with the Transportation System Plan (TSP)  if we donít update;  Mr. Crebbin noted that we might have funds for developers as we didnít generate the funds.
Councilmember Bunn questioned if the 12% and methodology would be revenue neutral;  Mr. Crebbin noted that it would not be.  Councilmember Jackle questioned if the 17 streets goes away and then what; Mr. Crebbin noted street utility fee and SDC some are existing and some future need. Lorraine Peterson, Utilities Manager, noted that some people will see increases and would depend on the number of units. Councilmember Bunn noted we switched pots in order to pay for Police/Fire buildings. Councilmember Stine questioned the index numbers; Mr. Crebbin noted it averages about 3% a year.
Sewer collection SDCs are much lower than SDCs.  Staff suggested adjustments to SDCs +9% per year and change storm drain methodology.  A sewer master plan is in the budget. 
Mr. Crebbin requested Council direction on what to do with street sewer collection; storm drain SDCs; % changes; methodology changes; and indexing. 
Mayor Wheeler clarified that staff suggestions are:  adjustment to SDCs - % per year and changes to the Storm Drain methodology. 
Councilmember Bunn questioned if they recommended indexing; Mr. Crebbin indicated that that was purely a Council decision.  Councilmember Corcoran questioned how we are going to remain solvent. Mr. Crebbin noted we wonít have the 17 transportation projects anymore. Councilmember Stine indicated he liked staffís suggestion and indexing. Councilmember Corcoran would like to see those numbers. Councilmember Bunn would like to index as well. Mr. Crebbin noted that the sewage treatment is indexed. Councilmember Zarosinski questioned if you can add an inflation factor for SDCs. Mr. Crebbin noted that it is a financial assumption when they established the SDC. Mr. Wheeler would like to not have to bond as we are seeing that the MWC is looking at that. Mr. Crebbin noted fees for developers would also go up but should not cause a problem. Mr. Hoke says that bancrofting is in place but the interest rate is too high; to change the 8% in the Code would take Council action. Councilmember Corcoran noted that you canít spread the payments out and get a certificate of occupancy. Ms. Peterson commented that State law has rules pertaining to bancrofting. Mr. Hoke noted they pay 50/50 when getting the building permit and the other 50% when getting the certificate of occupancy. Staff to come back with options.
Local Access Streets
Mr. Crebbin provided a PowerPoint presentation and a list of all local access streets in Medford including County roads in the City. Council direction is needed if the city is going to change policies regarding street acceptance and maintenance, additional resources are needed or lower levels-of-service will be provided.
Mayor Wheeler questioned how many complaints we receive; Mr. Crebbin noted complaints are received regarding Orchard Home, Eastover, and Sunset Streets. Councilmember Bunn questioned if we offered a Local Improvement District (LID); Mr. Crebbin noted that no one has taken advantage of it. Mr. Crebbin also noted an LID could work on Eastover if they buy some land. Councilmember Bunn questioned how much it would cost to improve streets; Mr. Crebbin said about 20 million dollars. Councilmember Bunn questioned if this can be notified when they buy a property; Councilmember Jackle noted that some developers up by Bethel Church have not done the easement. Councilmember Jackle noted we need to clean up our Code; Mr. Crebbin noted that we review the plat; as for now, it will stay as is.
Mayor Wheeler reminded everyone that the Alba students will be here September 3.
Councilmember Bunn noted that staff is reworking the application form for boards and commission interviews.  Any comments will need to go back to Winnie Shepard.
The meeting adjourned at 8:00 p.m.
Karen M. Spoonts, MMC
City Recorder

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