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HomeMy WebLinkAbout1998-0317.REG.MINMINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL March 17, 1998 PLEDGE OF ALLEGIANCE Mayor Shaw called the meeting to order at 7:00 p.m., Civic Center Council Chambers. ROLL CALL Councilors Laws, Reid, Hauck, Hagen, and DeBoer were present. Councilor Wheeldon was absent. APPROVAL OF MINUTES Mayor Shaw noted that Councilors had been presented with amended minutes for the March 3rd meeting, correctly indicating that the DEQ's Air Quality Presentation had been made by David Collier and that identified the regional transportation planning group as the Metropolitan Planning Organization (MPO). The minutes of the regular meeting of March 3, 1998 were approved as amended. SPECIAL PRESENTATIONS & AWARDS 1. Presentation by Carollo Engineers regarding status of the Waste Water Treatment Plant. Director of Public Works Paula Brown introduced Bob Eimstad, of Carollo Engineering who provided an update of the status of the Wastewater Treatmere Plant upgrade project. Eimstad stated that the project will be about ninety percent complete by the end of March, meaning that they are roughly one month ahead of schedule. Noted that improvements need to be on-line and working by the end of calendar year 2000, and current progress indicates that there is adequate time to meet that completion date. Cited uncertainty due to need to seek DEQ approval. Also explained that there will he a meeting April 14th, to speak to neighbors and show them how their concerns have been addressed Briefly discussed second portion of the project, the off-site biosolids treatment area. Noted that Ashland will cease discharge into Bear Creek and Ashland Creek during the dry season (November 1 through April) as required by the DEQ. Treated effluent will be pumped to storage uphill and then dried and distributed in irrigation water on to City property. Will be ready for construction beginning next summer and be on-line with the Wastewater Treatment plant improvements in 2000. Eimstad noted that meetings with neighbors had occurred on March 16th. Listed concerns raised as odor, visual impact and impacts on property values of neighboring property, and questions about groundwater degradation and erosion on sloped areas. Property will need a conditional use permit through the Jackson County planning department. Discussed progress in permit process, and the need for pollution rule requirements in Rogue Basin to be waived for discharge into Ashland Creek. City will need to evaluate means to replace flows diminished by effluent treatment, and is looking into using Imperatrice property water rights as flow augmentation/flow return. 2. Presentation by Mt. Ashland Association regarding planned improvements to the Mt. Ashland Ski Area. Muriel Ames, vice prcsidem of the Mr. Ashland Association board of directors noted recent history of the ski area, outlining the fact that the City owns the ski area and leases it to the Association. Forest Service permits are held by the City. Emphasized services offered to the community, especially local youth. (There are now nearly 1500 students enrolled in skiing programs, and these programs are now part of Ashland Middle School curriculum for 7th and 8th grades.) City Council Meeting 03-17-98 Stated that with financial success comes the need to enhance the area to better serve youth, novice and intermediate skier as well as snowboarders. Plan will ensure the ski area's long-term economic health by staying current and making improvements. Improvements are currently being analyzed by the Forest Service, and there will be opportunities for public input in Medford and Ashland (April 8th at 8:00 p.m. in SOU's Stevenson Union). Jeff Hanson, Mountain Manager, presented an overview of the proposal. Noted the careful planning that had gone imo preventing impact on the forest and watershed, explaining that a rare plant survey had been performed and that wildlife and water quality had been taken into account. Stated that the layout prevents impact to wetland areas or any erosion. Emphasized that ski season provides a good compliment to the off-season for the Shakespeare Festival, that there are many positive youth activities, and that these improvements put the mountain on a firm foundation to continue providing these types of services to the community in the future. Noted that interested parties can contact the U.S. Forest Service to provide written or verbal comments or to be added to mailing lists. Discussion of the Mount Ashland Association's partnership with Callahan's in light of their illegal sign and the fact that this situation would be taken into account when the contract is renewed. Myra Erwin/300 Grandview/Conservation Chair for the Rogue Group Sierra Club. Supports expansion that is user friendly to novices and intermediate skiers. Stated that the proposed plan has significant environmental impact and does not meet it's stated goals. Introduced Tom Rose, who has prepared a map identifying problems. Explained that Rose was involved in developing the original master plan for the ski area, and the environmental analysis. Tom Rose/420 Wiley/Identified three principle concerns. Timber, wetlands, and two new risks to ski areas - novice access and ski run steepness. Stated that a tangible comparison for the timber to be removed needs to be provided. Noted that two new roads are proposed, raising concerns about run off and erosion and silt transport. Pointed out that the wetlands at the upper end of the watershed are critical to area, explaining that there are four substantial wetlands, and ski runs cross streams six times and wetlands five times. Stated that expansion is needed but it should be planned for the knoll where there are no streams or significant wetlands. Mayor Shaw suggested that the Rogue Group meet with the Mount Ashland Association to discuss these concerns. Marilyn Briggs/590 Glennview/Because Ski Ashland is public, the partnership with Callahan's is suspect in light of the illegal billboard. Suggests contract be cancelled. Feels that Mount Ashland Association could end affiliation due to the illegal activity since the contract was signed. Community must unite in non-support of this billboard. Mayor Shaw asked that this subject be placed on the next council agenda in April for discussion, and that the Mount Ashland Association board be invited to hear community member comments. 3. Mayor's Proclamation declaring the week of April 5-11, 1998 as Arbor Week in Ashland. Mayor read proclamation by title only. Mayor's Proclamation declaring the week of April 5-11, 1998 as Building Safety Week in Ashland. Mayor read proclamation by title only. City Council Meeting 03-17-98 CONSENT AGENDA 2. 3. 4. Minutes of Boards, Commissions and Committees. Monthly Departmental Reports -- March 1998. Approval of liquor license application for Oak Knoll Restaurant (Bob Haney, applicant). Approval of liquor license application for Peerless Garden Grill and Bistro (Crissy Barnett, applicant). Authorization of City Council for termination (or readjustment) of two easements on newly created lots in the Fordyce Street area. Adoption of Findings for approval of Skateboard Park. Petition to City Council to approve a resolution recognizing the Paul Robeson Centennial. Council confirmation of appointment of City Administrator. Mayor Shaw requested that item #8 be pulled for discussion. Councilor Reid requested that item #5 be pulled for discussion. Noted that these would be addressed under "New and Miscellaneous Business". Councilors Hauck/Reid m/s to accept the remainder of the consent agenda. Councilor Hagen stated that he could not vote on item #6 (Skateboard Park findings). Voice vote: All AYES (Hagen abstaining from #6). Motion passed. PUBLIC HEARINGS 1. Consideration of adopting a Telecommunications Business Plan for the Electric Department. Director of Electric Utilities Lovrovich explained reasons for this plan, citing changing regulations, new technology, customer expectations, and the need to look to the future to secure revenues for the City. Noted that currently, nine miles of ¼ fiber strand guywire (used to install fibers) is in place. Conduit has been installed in conjunction with other projects. Explained that if council decides to move forward with the plan, will bring funding alternatives back, and stated that Finance has had limited opportunity to prepare information to date due to budget season. Presented staff recommendation to extend fiber to all city nodes, and to develop a strategic steering committee and a technical advisory group. Public hearing open 8:03 p.m. Dan Bickford/3104 Woodbriar, Medford, OR/Falcon-TCI/Stated that plan's projections represent 80% of TCI's customer base, and feels that this is unrealistic. Noted that City's expanded basic projections are 15% higher than TCI's numbers in that area. Cited historic data to indicate that potential number of premium subscribers is overstated by 200% Noted that there is no consideration of providing public access in the plan. No consideration of the required digital decoder which would raise City's rates above those charged by TCI. Stated that internet service projections are optimistic at best, and stated that TCI will be offering similar services by that time. Asked that council not take action at this time, but look at financial risks in a competitive environment that rapidly changes. Emphasized that there is a good deal of money at risk. Noted current number of TCI subscribers in Ashland is 5236. Charles McHenry/2514 Old Military Rd./Central Point, OR/Member of Oregon Telecommunications Forum Council (OTFC) chaired by Governor Kitzhaber/Expressed his strong support for the proposal, noting that other cities are currently undertaking similar projects and even ODOT is placing fiber along I-5. There is a terrific right-of-way in utility and should leverage that right-of-way to pull fiber and establish infrastructure. Cited similar activities in Springfield, Eugene, Cedar Springs, and Tacoma. Noted that the City will need to pull fiber anyway for internal purposes, and from a business perspective should look to leverage it. Stated that the City should form a technical and business committee, noting that the industry is moving rapidly, and there is a need to move in a timely manner. Once the asset is in place it can be used for a variety of purposes that will expand business opportunities in the City and bring more businesses. City Council Meeting 03-17-98 Ralph Wefel/55591 Freeman Rd./Central Point, OR/Interested in the issue as an InfoStructure user and user group member, questions whether InfoStructure users elsewhere in the valley will have improved access over alternatives such as existing copper lines. Charley Lanusse/645 A. St./SOTTC; Starseed, Inc./CEO of Starseed, Inc., developer of communication technologies, and chair of SOTTC of InfoStructure. Both his business and personal interests lead to his support of this project from it's early stages, although it provides him with no immediate benefit. Stated that connectivity brings benefits to the world, and communications are vital to how we will function as a society. Feels that this project represents an invaluable opportunity for a small community. Leveraging the right-of-way is an amazing opportunity as it represents the most expensive item for private enterprises in similar situations. Explained that this project will allow internet connection without a computer, to greatly expand communications. Re-emphasized the importance of these issues for society, and noted that he is impressed with the community's capacity to get things done. Bill Tierney/3500 SW Bond Ave./Portland, OR/Regional VP, Falcon-TCI/$4.2 million is a great risk, even greater given over optimistic projections. Plan's projected CATV revenue exceeds all cable systems in the U.S. Noted deficiencies in projected costs as well. Will need considerable additional staff as well as provisions for billing, mailing, and etc. Cautioned prudence, explaining that a potential asset could easily become a liability without accurate projections, particularly on the revenue side. George Stephan/611 Siskiyou Blvd., #2/General Manager, InfoStructure/Project will put utility in better position to compete when deregulation becomes a reality. Despite his position as an internet service provider (ISP), he views network as an opportunity not a threat. Noted that ISP's are regional not local, and feels that City should enter partnership with existing ISP's. Long term impact will be helpful to City as it prepares for new millennium, and will establish Ashland as one of the most forward looking communities in the nation. Allan Oppenheimer/ll0 S. Laurel St./President, Open Door Network ISP/Ring will help by giving more options. Supports project because it is "cool technology and a cool project". Will make a giant difference in services available due to the technology, and will bring emerging technologies to Ashland much sooner than would otherwise be possible. Feels that as far as obstacles go, technical issues will rival monetary issues, but he emphasized that there is a significant technology sector developing within Ashland and these people are available to assist on technical issues which may arise. Joe Johnson/Executive Vice President, Faicon-TCI/TCI will continue to provide customer service, upgrade technology, and look at new technology and new products. Bottom line is that there will be competition and this has not been adequately considered in the projections. Ferhad Erdogan/545 A. St./Aneva, Inc./Emergence of technologies has greatly increased what is available to consumers. Services will eventually merge to become one technology, combining voice, cable and computer. Suzanne Stevens/33 Mallard Ln./Stevens Design & Starseed, Inc./Will benefit her small graphic design business. Noted how the worldwide web makes mass communications available at an amazingly low cost. Large part of business is "pushing print files" that would take 5-10 hours on a 28.8 modem connection. A fiber ring will offer much better upload capabilities. Mike Dewey/960 Liberty St./Salem, OR/OR Cable Telecommunications Association/Asks that Ashland take close look at the cable television side of this project, particularly in regard to the previous survey. Stated that there is normally one business in a given arena within a community for a reason. TCI will compete, and it appears that Ashland will attempt to regulate and compete at a higher price. Concerned with having to provide plans for TCI upgrades to the city, it's competition, as part of a franchise agreement. Also raised issue of cross City Council Meeting 03-17-98 subsidy related to the use of electric utility dollars. Cited difficulties of the project as competition and the required infrastructure, and noted that TCI will also be providing internet service in competition with Ashland. Steven Belsky/609 Elkader/Project A/Supports project. Feels that arguments against plan have merit and should be considered, but that there is a compelling argument to move forward. Supports providing cable, but questions if City will control content. Also noted concern over City ability to extract knowledge about habits. Noted that with regard to the internet, the City will provide bandwidth, not service per se. If City provides more bandwidth to existing ISP's and encourages new ones to come to Ashland, it will benefit City and the companies. Identified the key issue to consider as the growth of a high technology sector in Southern Oregon, noting that software has been identified as one of the three key industries to the region. Feels that plan implementation will attract this industry to the area. Caveat is that Ashland should move in rational, responsible manner, and provide for citizen oversight. Technology in Ashland will grow and the demand will grow, and Ashland could become the mecca for high tech companies. Paul Mace/400 Williamson Way/President, Paul Mace Software, Inc./In favor. Business plan must be addressed due to cost and the infrastructure that will be needed. Must consider TCI's comments. Should also seek to develop public support aside from profitability. Must state goals and benefits. Noted that technical obstacles aren't covered in the plan, and there are exaggerations of service provided. Costs associated with providing service are not currently outlined in plan. Concerns could be addressed by forming committees to conduct an analysis of this plan. Those who would be involved are in the field and could act quickly to look at and revise the plan. Russ Silbiger/562 Ray Ln./In favor. Cable prices have risen, and TCI competitors provide more and better services for less. The possibility of offering internet service also provides a great opportunity. Good for community overall, including the college and businesses. Will entice business into town. Joia Gaffey/637 Oak St./Flabbergasted that citizens think city should be providing cheap television, or otherwise be involved in private enterprise. May be acceptable for the City to own the digital street, but don't need to own the digital businesses on that street. Let private enterprise assume risk and reap profits. San Francisco Chronicle recently noted that ISP business is so competitive that current servers can't charge more than $20 per month and must rely on web page design business to make their profits. Also questions ethics of City's being the gatekeeper to internet's potentially objectionable subject matter (pornography, etc.). Internet will allow competition for local businesses on-line. Local bookstores will now have to compete with Barnes & Noble's on-line services. Should City provide competition? Public hearing closed at 9:05 p.m. Councilor Hauck noted that there are currently two municipal internet service providers (ISP's) in Oregon. Lovrovich addressed concerns that had been raised over billing and bad debt collection, stating that these are already aspects of the Electrical Utility business and are successfully in place now and the department is currently working on updating billing procedures. Noted that more manpower may be needed, but that the programming providers will also provide content and billing if requested. Feels that in discussion this evening, rates and performance are issues. Noted that Ashland is not seeking to build an analog system that has been in place for years, but will build a new digital system. Noted that fiber ring will not initially benefit computer users elsewhere in the valley, but if other cities built similar system it would allow interconnectivity. City Council Meeting 03-17-98 Some risks cited are valid points. Results cited in the plan were from an extensive survey conducted by a respected Eugene firm. Found costs becoming prohibitive, and found many would be willing to switch for a lower cost. What is to be built will not be same as what exists now. Noted that competitors are seeking to legislate prohibition of municipal involvement in cable business. Deadlines are approaching, and this plan is intertwined with whole range of future plans for the Department. While they can change plans, other areas will be affected. The urgency of moving forward with the plan was emphasized, as Congress will be addressing deregulation soon. The City must position the utility to effectively deal with deregulation. Lovrovich noted that cross subsidies will not occur, and that the fiber optic business will stand alone in the budget. Stated that technology is advancing in this area. Noted that USWEST and NYNEX are providing entertainment television over phone lines. Most lucrative option is building a fiber system to allow for future service and flexibility. Community advisors would be welcome. Discussed other municipalities involved in providing cable television service. Noted that TCI had provided information on failures. Cited Cedar Falls, Idaho and Glasgow, Kentucky as saying that their cost over-runs were due to additional services offered (WANS) and that these provided additional revenues as well. Stated that Plan will build security, stability and efficiency for city departments and citizens. Discussed timing of the plan, and whether immediate business plan approval is necessary. Lovrovich noted budget season is here, and there is a need to determine what will be done for the next fiscal year. It would be easier if factors were known now. Putting off plan at this point might mean waiting another year. Technology committee and business committee to oversee plan might affect budget. Suggested that Finance Department should be consulted on this issue. The possibility of alternate budgets to give time for the decision while allowing for Finance deadlines was suggested. Discussion of nearest available T3 connections. Confirmed that plan involves using fiber to the curb and coaxial cable into homes. By law, can use TCI in-house connections. Projections include connection to 62% of Ashland homes. There is an existing fiber network in town, but of a different architecture. Plan includes a 172-fiber ring in a Figure 8 configuration with 19 nodes in town, compared to 9 nodes held by TCI-Falcon. Would have the capacity for a three-way split within nodes. Clarified that plan would allow partnership with existing ISP's. Ten percent of citizens would use this service, and public access has been accounted for. Current plan calls for 11.3 miles of fiber, at a cost of $230,000.00. City has applied for three grants, which are included within the $4.2 million total. Charley Lanusse operates a computer service supporting an international community of 475,000 over a network. Familiar with issues involved here. Discussed how speed within City's fiber ring will translate on services going out of town. Noted that within the ring very high speed will be possible. Going out of City, the T3 connection "pipe" will provide a substantial increase in service over JeffNet, RVTV, etc. Community-to- Community interaction over Jefferson Public Radio will be enhanced, and local stores could use the fiber ring to provide service on-line and reduce downtown traffic. Clarified that communications would be many times faster than they are presently within the City, and still faster than current options outside of City. Clarified that local high tech community had been consulted on their needs in planning this system, and that Lovrovich had met with two ISP's recently. Noted the opportunity this will provide to attract family wage jobs to Ashland. City Council Meeting 03-17-98 Councilor Laws, as a user of the services under discussion, is highly in favor of getting into the telecommunications business. Looking at financial pro formas, viability is dependent on cable television element, and he is not convinced that the information presented is sufficient to make a decision of this magnitude. Stated that TCI will not lower costs to meet City's costs, but could potentially meet costs and damage the viability of the entire venture. Questioned how many customers would convert if prices were the same. Stated that City must look at the assumption that it will take 80% of customer base. Noted that a better service might not be chosen if analog service were available cheaper. Questioned cost of plan without television element. Emphasized the need to look at whether plan has been too optimistic, since $4.2 million is at risk. Services may merit cost, but must know the benefits beforehand along with the risks involved. Asked to have a group of experts look at the plan for a month with a skeptical eye, while staff looks at costs, revenue, etc. Wait and act from an informed position. Councilor Reid stated that if implementing the plan meant TCI would drop their rates, she felt the decision to implement would not make enemies in the community. Councilor DeBoer stated that he appreciates the attempt to enter this arena, supports network and feels the plan is wonderful. Noted the jobs that could come to town. Suggested formatting groups to oversee, giving tentative go ahead and formulating alternate budgets. Councilor Hagen stated that this is the future. He sees efficiencies in providing cable, electric and computers to homes and feels that staff is ready. Stated that the assumptions made by TCI about lack of billing infrastructure are false. Also noted that the utility newsletter could be used to bring public awareness of services provided. Both treatment plants, water and wastewater, represented greater risks. Substantially more business opportunity involved here for less money. Current state of City infrastructure has resulted from decisions like this, beginning with the decision to create Lithia Park and down through history to the present. Councilor Hauck noted that while there are risks, they are the same as the City's taking over the electric utility ninety years ago, noting that it has managed well despite competition and is an integral part of the community now. This decision will have similar importance during the next century. The plan's assumptions are based on good information. Noted that saying projections are for "eighty percent of TCI's customers" doesn't take into account the forty percent of citizens who choose not to use TCI services and are potential customers when new services are offered by the City. Emphasized that Ashland is not the first community to do this, stating that there are plenty of examples of great public benefit, lower rates and greater revenues in small communities. Noted that Glasgow, Kentucky has stated that they wish they had moved sooner. Councilor Hauck stated that he feels there is sufficient information here to move forward now, citing the staff recommendation from packet. Noted that implementing the plan will be a two to two-and-a-half year process, and the City will need to offer these kind of services to compete in a deregulated environment of "one-stop shopping". Asked that Councilors move forward now, refining the plan as necessary. Mayor Shaw noted that TCI's opposition to this plan is a sign of it's strength. Quoted Senator George Morris who stated that a free people cannot submit to a private monopoly on the necessities of life, and stated that in this day and age, both television and the internet may qualify as necessities as they are a vital part of our interaction with the world. Stated that cable is not the backbone of the plan, but rather a side venture to help with financing. The availability of interactive television would save citizens money on computers by allowing access to the internet through television. Noted that this incredible opportunity makes her fear for Ashland, as it may bring more population, but it is time for a step forward to influence the City's new direction. Councilors Hagen/Reid m/s to extend the meeting to 10:30 p.m. Voice vote, all AYES. Motion passed. Councilor Reid questioned the possibility of preparing duplicate budgets, and inquired as to the budget timetable. Director of Finance Jill Turner stated that duplicate budgets would not create a problem, as the City Council Meeting 03-17-98 current document splits the Department of Electric Utilities into two divisions, fiber and electric. If the choice is made not to move forward on the fiber plan, necessary changes to the budget document could be made easily. Emphasized that this was fine as far as the budget process goes. Noted the probability of financing with electric revenues or bond performance. Councilors Laws/Reid m/s adopt the plan, subject to the return of positive information by staff and approval of finance and business plan by advisory committees. DISCUSSION: Clarification that "subject to" means that positive information would need to be returned. Director of Finance Turner clarified that bond process requires proving ability to pay for normal operations and repay the debt service. Stated that revenues in plan are overestimated, and underestimated in expenditures. Will need to go back through plan, and have an outside consultant look at plan as part of bond preparation process. Then will bring a revenue bond resolution to council. Mayor Shaw inquired, and Turner confirmed, that technical and business committee approval was not necessary as part of the financing process. Councilor Laws stated that he could withdraw committee portion of his motion, leaving it to include staff and a consultant. Mayor Shaw also noted the possible need for a citizen committee for programming oversight. Councilor DeBoer asks for a change of the motion to allow the Director of Electrical Utilities to appoint committee members, and to include dual budgets. Mayor Shaw noted that the City Charter placed this responsibility with the Mayor, but noted that the Mayor could turn over this role to the Department of Electrical Utilities. DeBoer suggested that it be a less formal committee not requiring formal appointments. Councilor Laws stated that he could accept the motion if amended as discussed. After discussion of the staff recommendations from the packet, the motion was withdrawn. Councilor Laws/Reid m/s to adopt staff recommendations subject to the return of a viable financial plan. Roll call vote: Hagen, Reid, Hauck, Laws, YES. DeBoer, NO. Motion passed 4-1. PUBLIC FORUM None UNFINISHED BUSINESS None. NEW AND MISCELLANEOUS BUSINESS 1. Consideration of request by Ashland School District for a waiver of Systems Development Charges. Carried over to next meeting, to be held April 7th. 2. Report on Ashland Creek Turbidity issues. Carried over to adjourned meeting to be held March 18th at 12:30 p.m. 3. Council confirmation of appointment of City Administrator. Pursuant to the Ashland Municipal Code, Mayor Shaw presented Mike Freeman to the Council as her recommendation for the position of City Administrator. The Mayor thanked Interim City Administrator Greg Scoles, and stated that the two working together will form a dynamic team to provide Ashland with the best leadership available. City Council Meeting 03-17-98 Councilor Laws noted that he hadn't had the opportunity to view the information on the Mayor's recommendation and would not be able to vote. Mayor Shaw noted that unique circumstances had allowed her to present Freeman at this time. Freeman said that he had looked into Ashland prior to applying, and that he found Ashland to be unique in the United States. Stated that his skills and background will bring a new dimension to the City. Noted that Ashland has benefitted from a City Administrator who served a long term and a stable council, and that he can bring unique skills and a new perspective. Councilors Hauck/Reid m/s to confirm the Mayor's appointment of Mike Freeman as City Administrator. DISCUSSION: Councilor DeBoer noted that while he didn't care for the interview process, he approved of Freeman. Roll call vote: Hagen, Hauck, DeBoer, and Reid, YES. Laws NO VOTE. Motion passed. ADJOURNMENT Councilors Hauck/Reid m/s to adjourn the meeting at 10:30 and carry the remainder of the agenda over to tomorrow, March 18th, at 12:30. Voice vote, all AYES. Motion passed. Barbara Christensen, City Recorder Catherine M. Shaw, Mayor City Council Meeting 03-17-98