City Council Minutes - 03/16/2021 Ins
City of Tigard
City Council Business/Workshop Meeting Minutes
March 16, 2021
1. BUSINESS MEETING
A. At 6:32 p.m. Mayor Snider called the City Council meeting to order.
B. City Recorder Krager called the roll.
Present Absent
Councilor Newton ✓
Council President Lueb ✓
Councilor Shaw ✓
Mayor Snider ✓
Youth Councilor Calderon ✓
Councilor Goodhouse ✓
C. Pledge of Allegiance—Mayor Snider asked everyone to mute their mics and join him in the
Pledge of Allegiance. A flag was projected on the screen.
D. Call to Council and Staff for Non-Agenda Items —City Manager Rymer said staff is requesting
that Council pull Agenda Item No. 4—Consider Approval of a Resolution of Necessity for
Property Acquisition Related to the Public Works Facility and Yard Project from the agenda.
There were no objections from Council.Agenda Item No. 4 was tabled to a future meeting.
2. PUBLIC COMMENT
A. Public Comment—Written—Mayor Snider noted there were two comments received today,
one regarding the proposed resolution of necessity in Agenda Item 4 and another regarding
the rate charged to 1-inch water meter users.
B. Public Comment—Phone-In—Mr. Brian Spencer commented on Agenda Item No. 4 and said
he is a principal with the group owning the property originally scheduled for a discussion
about the city purchasing it through condemnation, if necessary. He requested that the
Council reject the Resolution of Necessity or at a minimum, defer the decision to allow for
more time to consider alternatives and what effect this would have on the businesses involved.
He said the existing business has been in Tigard since 1972 and at that particular property
location since 1992. The property is unique in the Portland area and he is not aware of any
other property that this tenant could currently relocate to. Even if one was identified and
purchased, it could take three to five years to develop and construct. This action by the city
would displace or eliminate a significant local employer. It would be a loss to Tigard and to the
people employed there. He said he reviewed the agenda material, and it appeared the selection
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process has gone on for quite some time. But they were first notified on March 3 and he was
shocked by such short notice. He did not understand why they were not notified as soon as
the property was under consideration. It leaves the property owner and tenants inadequate
time to engage and find another location. He said he was unfamiliar with the other properties
under consideration,but it appears they would cost less to acquire, and he thought this would
be important to a public body spending public money. He suggested that the city seek under-
or undeveloped property and consider the factors he sent in his email and his testimony
tonight.
B. Follow-up to Previous Public Comment—None.
3. CONSIDER APPROVAL OF CONTRACT WITH EMILY OBERDORFER FOR
MUNICIPAL COURT JUDGE
Central Services Director Robinson gave the staff report on consideration and possible ratification
of an employment agreement for Ms. Emily Oberdorfer for the municipal court judge position.
Former presiding judge Michael O'Brien retired at the end of 2020 and a statewide recruitment
was launched. The position was advertised through the Oregon State Bar Association, the Oregon
Municipal Judge's Association, Indeed, social media and the city's website.We received 29
applications and 8 semi-finalists were interviewed.Three applicants were invited to come before
the full council and Emily Oberdorfer was selected as the finalist.
Central Services Director Robinson said she and HR Director Bennett negotiated a 15-month
employment agreement which automatically renews for one-year terms unless notice is given.The
initial hourly amount is the current judge pay rate of$100 per hour,but hours are expected to
increase due to photo enforcement. When the position increases to half-time or more,
compensation will shift to salary,which starts at$93,000. The contract also includes a reopener
provision so if those work hours regularly exceed.6 FTE,there is the ability to discuss a different
salary. It allows for a six-month probationary period and annually the judge will meet with
Council to provide a report and to do goal setting. Ms. Oberdorfer is eligible for Management,
Non-represented benefits,pro-rated for her part-time status. If Council approves the employment
contract,March 28,2021 would be her start date.
Judge Oberdorfer said she was honored to become a judge for the city of Tigard. She gave some
background noting that she attended Lewis and Clark Law School after receiving her bachelor's
degree at PSU. She acted as Judge pro tem with and for Judge O `Brien and shares his judicial
philosophies. She looks forward to working with the community as we get used to photo radar.
Council President Lueb offered congratulations and welcomed her, adding that she looks forward
to meeting her in person (but not in the courtroom).
Council President Lueb moved for approval of the contract with Emily Oberdorfer for Municipal
Court Judge. Councilor Shaw seconded the motion. City Recorder Krager conducted a roll call
vote and the motion passed unanimously.
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Yes No
Councilor Newton ✓
Council President Lueb ✓
Councilor Shaw ✓
Mayor Snider ✓
Councilor Goodhouse ✓
4 CONSIDER A nr n O r A T OF A RESOLUTION T TTION OF ATE C SSIT V FOR
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This item was tabled to a future date.
5.. RECEIVE MARCH 2021 CAPITAL IMPROVEMENT PLAN UPDATE
City Engineer Faha said the CIP is part of city's annual budget and represents projects for the
existing budget year and those planned for the next five years. She highlighted projects that have
some cost or schedule issues.The Fanno Creek trail project,which will create four new sections
has several budget and schedule issues. The project uses federal highway funds meaning that
ODOT must manage the grant. Staff is looking forward to bidding the project in the fall with
construction starting in the next fiscal year. In the upcoming budget process there is another
increase of$700,000. She researched whether there would be any savings to the city if the grant
was just turned back and discovered that there would be no cost savings. Trail amenities can be
defended for a savings of$650,000 that could be available to help with the increased cost.
The city applied for an Oregon Marine Board grant to make the Cook Park dock ADA accessible.
People in wheelchairs could access their watercraft.The Cook park softball and baseball turf
infields are underway. There will be a third-quarter budget request for additional funds as the
contractor ran into subgrade foundation issues and a cement-treated base is required.
Contracts for slurry sealing and paving will be coming soon to Council for approval. There is a
79th Street Engagement website seeking input to develop short-term ideas to help with traffic
calming and slowing in that area and to define future sidewalk gap projects.The Upper Boones
Ferry Road adaptive signaling project is aiming for summer 2021 construction.
An 8-month closure of the overpass on Hall Boulevard is planned during the ODOT Highway
217 widening project. A traffic signal is going in at 72nd Avenue and Tech Center Drive and
should be in operation by June. Staff is hoping to bid the Main Street Phase 2 project by August. It
is at 60 percent design and staff has been doing outreach to businesses on that segment of Main
Street. City Engineer Faha said sanitary sewer projects are all going well. She showed slides of the
Frewing Street stormwater culvert construction and headwalls for the creek crossing under
Frewing Street.
Councilor Shaw commented that the Cook Park ADA project is vital and will be a tremendous
asset to the community. She asked if there was an opportunity to bring back some of the Fanno
Creek Trail amenities through grants. City Engineer Faha said staff is watching for grant
opportunities and possibly looking to the Metro Parks Bond.
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6. RECEIVE UPDATE ON TYLER TECHNOLOGY PROJECT
Tyler Oversight Project Manager Beck gave a slide presentation to update Council on progress of
the 4-year Tyler Technologies project implementation. Over many years of customization to the
city's software it has reached the point where we need to overcome the siloed systems that can't
communicate with each other. The Tyler Technology Project will replace outdated and disparate
software throughout the city's core business systems with a modern,integrated system designed to
allow standardized, efficient workflows, data sharing and reporting, heightened security, and
enhanced customer service.The project will modernize the enterprise system, using
LEAN/process efficiency improvements and solutions that will help the city meet performance
audit recommendations. Current solutions provide very limited public-facing capabilities and Tyler
will increase transparency and ease of access for the public.
To date, the team has established a framework and set up a 4-year scheduled implementation,
established internal project management and an internal Tyler Steering Committee comprised of
department leads. There is a project stakeholder communication plan. Key achievements include
the launch of Phase 1 -Munis implementation (Core Financials). Recently, Phase 2—EAM
(Enterprise Asset Management and work orders) and Phase 3—HCM (Human Capital
Management,Risk and Payroll) were kicked off.
Tyler Oversight Manager Beck said public benefits include an improved and streamlined customer
interface including access portals. There will be vendor online capabilities to eliminate paper
processes and reduce the need for in-person visits to conduct business. The public will eventually
have access to a centralized 311 solution to submit various concerns and comments. The 311
solution will improve the intake, tracking and response to community concerns and has much
greater analytical capability which will be transformative to the city.
He discussed the schedule for the next four years showing a ramp up to having multiple modules
going at once this year, and five by next year. This is the largest business system project the city
has ever attempted. Significant teammate time is needed during and after implementation.
Councilor Newton expressed concern that this project might impact the delivery of services to the
public as we move through the implementation. She verified that in the long run the city will have
the ability to make more informed decisions because its systems will be more connected,which is
a benefit. Mr. Beck said there will be one stop shopping for city business all in one place and the
311 component will help people report potholes or trees down in the road,etc.
Councilor Goodhouse commented that in a recent discussion about a land use process it was
noted that software important to the process was not implemented yet and he asked if the Tyler
implementation was holding this up. IT Manager Nolop replied that these types of programs will
come forward from the departments and Community Development will bring this forward
beginning in 2022 and go live with Intergov in 2023.
Tyler Oversight Project Manager Beck offered to come back in six months to provide an update
and Mayor Snider agreed that would be helpful.
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7. RECEIVE BRIEFING ON WATER COST OF SERVICE ANALYSIS AND RATE STUDY
PROJECT
Public Works Director Rager, Executive Manager Goodrich and Management Analyst Rico were
joined by Finance and Information Services Manager LaFrance to present the second workshop
session regarding the water cost of service analysis (COSA) and rate study project. FCS
Consultants Doug Gabbard, Zechariah Hazel and John Ghilarducci attended and a copy of their
slideshow is in the packet for this meeting.
Executive Manager Goodrich said this was Workshop No. 2 on the COSA and rate study project.
Council would be provided information on rate design which is necessary to finalize any proposal
regarding water utility rates. Information from the previous workshop was provided to newly
elected Councilor Shaw.
The Water Advisory Board (WAB) received the same information and presentation at a Special
Meeting on March 10. City Manager Rymer gave Council the information at that time.
FCS Project Manager Gabbard covered rate design basics and how they fit into the larger project.
He said they first identified water utility revenue requirements (Capital Improvement, Operating
Budget and Fiscal Policies) and came up with an across-the-board rate increase to cover the
requirements. But they did not stop there. The next step was to take the revenue requirement and
allocate it by function, and then finally allocate by customer class.That is where the discussion left
off at the last workshop in February. The main goal of a rate structure is to recover the targeted
level of revenue. It is generally composed of fixed and variable charges and includes
considerations such as equity,understandable and implementable (Can it easily be explained to
customers? Can the current billing system implement it?),impacts,revenue stability and
predictability. Other considerations are affordability and conservation. There are many competing
agendas to balance.
He reported on specific items the city wanted FCS to examine and their recommendations:
• Booster Fee Charges - FCS found that the current booster charge over-recovers.
They recommend a smaller charge reflecting only costs required for the booster,
mostly electicity. But there will be a small impact as this revenue drops.
• 1" Residential Meters with Fire Suppression systems— 185 customers have 1"
meters for fire suppression purposes.Their fixture unit counts only demand 5/8"
meters. For all rate design scenarios, the FCS recommendation is for these customers
to be downsized to a 5/8"meter.
• 1" Residential Meters analysis and outcomes—Is it equitable to price all
residential meter base charges the same? Staff put together data on usage and peaking
factors. Presently, those with 1" meters pay a significantly higher base charge than
those residents with 3/a" or 5/8" meters. Pricing them.the same would mean a$5.26
monthly increase for 5/8", an $8.09 decrease in 3/a"meter users and a$32.43 decrease
for 1" meter owners. (FCS does not recommend the same fixed rate and their
proposals tonight assume single-family customers are charged by meter size.)
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Mr. Gabbard showed a graph of a year's worth of bills for residential customers. At
the 50th percentile (average) a 1" meter is using 7 CCFs and smaller meters are using
fewer CCFs. At higher percentiles the 1" meters are using more but they have to use
16 CCFs in a month before going to Tier 2. About 80% of 1" meter bills never get
out of Tier 1. But if they were to be priced the same as 5/8" meters and if that
change encompassed a lower fixed charge and lower Tiers then the top of Tier 1
would come down to 6 CCFs which is where the 5/8" meters range. Then only 40 %
of the 1" meters would be able to avoid Tier 2.
• Uniform volume charge for multi-family—Currently multi-family users are subject
to the same tiers. However, this is not as practical because a multi-family user may not
be the same person as the one paying the water bill so price signals are lost. A
uniform volume charge would simplify the rate schedule without doing much damage
to incentives.They recommend a uniform multi-family volume charge for all usage
(all tiers) of$4.37.
FCS Consultant Hazel discussed implementation strategies and timing. He said they did not
recommend a one-time adjustment because that is too dramatic a transition.A better approach is to
take the adjustments and phase them in over five years. He showed a slide of the COSA rate
increases going into effect in 2022 and some classes have too dramatic an increase, such as Multi-
family at 29.30%.But if this one-time adjustment went into effect there would only need to be a
2%increase for the next four years.
He said the recommended implementation strategy is phasing the COSA over five years,which
smooths the rates over the time and is less dramatic. This slide showed multi-family at 7% at the
highest increase. Industrial and irrigation uses remains flat. Residential starts by over-collecting by
almost 2%but in 2026 they are exactly on target.When phasing in over five years there are
adjustments that will need to be made at the end of that time to lessen over-collecting and making
sure rate increases are subtle. Cost of service adjustments between classes are not made to the fixed
charges so instead the recommendation is a 4%across-the-board adjustment to all classes. Volume
charges are impacted by cost. (Multi-family class has no tiered system in this scenario but other
classes do.)
FCS Consultant Hazel outlined the Staff Recommendations on Policy Decisions:
• Booster charge - continue to charge Yes at allocated cost in earlier slide
• Fire Suppression and a fixture count consistent
with 5/8"would be charged fined fee based on 5/8" Yes
• Continue fixed charge based on meter size for
Single-family customers Yes
• Multi-family charged a uniform volume rate Yes
• COSA adjustments—one-time or phased in Phased in
• If phased in, should it be as presented Yes
Next Steps: Staff would return on April 6 for consideration of an amendment to the fees and
charges schedule based on this discussion.After that,the focus will be on communication and
outreach.
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Mayor Snider noted that the WAB agreed with all staff recommendations except the 1"meter
rates.
Councilor Newton asked for clarification on how fair share relates to consistency of multi-family
rates and asked about conservation. Consultant Gabbard said the COSA identified the shifts
necessary to make sure all classes pay their fair share. Through the volume rates everyone is
brought to the cost-of-service rates. But in rate design, the practicality of multi-family users being
insulated from price signals means their use is not influenced like any of the other classes. There
is a separation of user and payer. Single-family residential users continue to be in the tier system
and price signals are sent clearly. There are multi-family developments with significant
landscaping that have irrigation meters.
Councilor Goodhouse asked if there had been any outreach to industrial or irrigation users and
suggested they get notification of these changes. He asked if this affects costs for the city as they
install water parks. Executive Manager Goodrich said that any rate increases will affect the city
and the parks if they are using city utilities. He said staff did similar outreach for multi-family users
years ago. Multi-family residents are less likely to be concerned about how much water they use
compared to their neighbor.A benefit for the property owner is that a system without tiers is
easier to explain to the tenant and forecasting property management budgets is easier. The revenue
requirements are already built into the rates. Staff will explain the COSA and their new uniform
rate with one communication.
Councilor Shaw noted that slide 7 mentioned 1"meters for fire suppression and asked if this
included some homes or just townhomes. She mentioned that a building code requirement for
homes on a steep grade was to have a 1" meter. Executive Manager Goodrich said these are
townhomes in the River Terrace development. Staff recommended more hydrants,but the
developer put in separate fire suppression systems,perhaps to market them as safer. It was not a
requirement from TVF&R. For those customers on steep hillsides or in areas where fire
equipment is impacted on arrival, staff found the fixture counts are close to 1-inch. There would
be no change to their cost of service.
Mayor Snider requested the slide showing Water Use by Meter Size be displayed. He said the
question being asked is the wrong one and certainly not what the 1" meter users are asking. He
said rather than asking to pay the exact same amount, they are asking why they are paying so much
more. It doesn't seem equitable and proportional. Looking at the graph,he pointed out that
among the 3/4" and 5/8" meter users there are 10% (1,656 meters) that are using more than 16
CCF per month. He compared that to 1" meter users who use more than 16 CCF at 18%,which is
more on a percentage basis but that only represents 284 customers. He said he has heard for years
that 1" meter customers needed to be charged more because they demand so much more of
Tigard's water system and that has caused the city to build its system more than 5/8" and 3/a"
customers requie. But doing the math, 1,656 5/8" and 3/a" meter customers are using 26,496 CCF
and 284 1"meter customers are using 4,544, or six times less!When he thinks about equity,maybe
the 1"meter customers should pay somewhat more,but almost half of them are only using 1 CCF
more which means that half are paying more than double the base charge for the 1 CCF more. He
said that is the definition of inequity. He added that he would not support a plan that has 1" meter
customers paying more than double what 5/8" and%" customers do.
Consultant Gabbard said mayor's points are well taken. He said the rate design process is a top-
down decision if starting from scratch. It needs to be decided how much revenue should be raised
from fixed charges and how much from volume. Once a decision is made on how much should be
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raised from fixed charges,you need to decide on what to base the rest of the charges.A decision
was made in Tigard to base it on the flow capacity of meters,which is an approach FCS supports.
He said volume isn't the fairest way to allocate a fixed charge because that is already covered in the
usage charge. But meter size could be used as they vary in the amount of flow that is supplied.
Councilor Goodhouse noted that when his sprinklers are on in the summer, he has low flow inside
the house. He asked if a 1-inch meter would make a difference. Consultant Gabbard said he would
certainly have more flow available with a larger meter.
In response to a question from Mayor Snider on differences in flow per meter size,Executive
Manager Goodrich provided slides showing the following:
Max. flow per minute Max. flow per day
5/8"meter 16 gallons 23,040 gallons
3/4" meter 24 gallons 34,560 gallons
1" meter 40 gallons 57,600 gallons
He said the meter size was the basis of how the rates were designed in 2010 as the city was taking
on a large amount of debt for the water system. It was important at that time to have at least 40%
of fixed costs covering that portion of the debt service so we would not default technically on our
bond coverage.
Mayor Snider said we can still do that—the 40%is not in question;it is how it is allocated.There is
a disconnect in how much is charged. He referred to the maximum flow numbers for 1"meters
and said none of those customers are anywhere near the maximum use. Executive Manager
Goodrich said the base charges that increase with the size of the meter send a strong conservation
message. He said the 1" meter customers took on 2 '/z times the debt for the capacity they have and
are paying for the debt service on a system designed to meet their potential demand and the 5/8"
meter customers are paying for the debt service designed to meet their lower demand.
Mayor Snider said he cannot defend it and it needs to change. FCS Consultant Hazel said the fact
is, the system must be designed to meet potential demand of customers and there are choices to
charge for the actual demand or the potential. There is a trade-off. you would see more customers
adding 1-inch meters.You want incentives for people to use the smaller meter that they can.
Mayor Snider said that is not what we have been seeing. People are moving into Tigard and River
Terrace and when they get their first water bill they say, "Hmm,why is it so high?"Then they call
the city and find out they have a 1" meter. But that was put in by the developers.The people
making the decisions to put larger meters in are not the people bearing the monthly payments. He
said he has not seen that incentive working.
Councilor Shaw said her family did the math and came to the same conclusion. They do have that
potential demand, but they are not using that amount. She agreed that water conservation is
important but added that most people don't even know what size water meter they have.
Councilor Newton said she struggles with the same issue. Being on the Lake Oswego Tigard Water
Partnership Board,we had a lot of people struggling to conserve. She supervised Utility Billing for a
time and heard a lot of questions and saw a lot of 1-inch meter users that never get above Tier 1 so
it is hard to explain how this is a fair system.
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Executive Manager Goodrich responded that he has been following the policies set by the city. In
2010 Council adopted the rate structure after analysis and information was given and this system
has been in use for ten years. We have a few vocal customers but for the most part we are not
communicating a lot with 1" customers at the staff level about pricing,however, that doesn't mean
that their concerns aren't valid. He advised that if the council makes any changes to the structure,
they are creating a special class and whatever those revenues were to fund capital improvement
projects,LOTWP repair and replacement will have to come from somewhere else. It could be
shifted to the consumption rate,but then the problem is that if it is moved to a variable rate and we
have a mild summer, the amount of water we sell in Tiers 2 and 3 could lead to struggling to meet
our operating ratio requirements. Questions are how would this affect other classes on a fixed
proportional base rate. Would it affect multi-family rates? How would this impact our commercial
customers? He said staff and consultants are ready to "sharpen our pencils," but need some
direction as far as who is going to pay more.
Council President Lueb said she has heard complaints about the 1" meter situation since she
became a councilor. But after looking at the history and usage, she understands that the system was
priced to make us able to pay our bond and capital improvement projects. But we now have usage
history and can look at it to make it more equitable.A shift from 1" meter base charge needs to be
covered by other customers. She suggested reducing the amount of capacity before going to the
next Tier.
Youth Councilor Calderon agreed that it is not equitable, and the difference is too drastic for the 1"
meter users. He said we need to look more at who is using the most water and have them pay
more.
Councilor Goodhouse asked if there is a way to look at the bills to see if it would balance if they
pay more for usage but less for the meter. Mayor Snider suggested that taking the average amount
of$35.57, adding 39%per Mr. Keith Jehnke's public comment letter for 1" meters and leaving
5/8" and 3/a" meters as they are would remain at the average and then figure out the deficit. There
would be a tier for all users that charges customers using obscene amounts of water. Councilor
Goodhouse cautioned that there might be the issue with mild summer weather.
Council figured several ways to make adjustments. Council President Lueb said the base charge
needs to be flat. It would be a nightmare from an accounting standpoint if a property turns over
and the new owner uses less water than the previous owner did. She said if we want to "punish"
water use,have more of a significant first tier.
Mayor Snider heard we want something equitable to some extent based on and anchored to real life
water usage instead of a theoretical maximum that nobody is using.We do want a fined base fee of
approximately 40 %.
Finance Director LaFrance recommended that instead of having Council doing math during the
meeting,we let FCS group do this work. On April 6,we can bring results back to Council. He
noted that any alternative needs to be one that our billing system supports. Mayor Snider said
Council shares that desire.
Finance Director LaFrance said Council was clear about what analysis needed to be done by FCS
Group for the April 6 meeting.
• Single-family residential customer costs should be equitable and anchored to real life
water use rather than potential maximum capacity
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• Fixed base fee of 40%
• Single-family residential rates would balance fixed and variable (consumption) fees
• The 5/8" meter represents 1 and the 1"meter represents 1.4 ratio
• Alternatives must be able to be supported administratively
Councilor Newton thanked staff for providing the information and she appreciated staff s
involvement in the robust discussion.
Mayor Snider thanked staff for preparing slide of distribution of billed use by meter. After he read
the summary of the WAB meeting, he wanted to see a picture and he appreciated staff putting that
together so quickly.
8. NON-AGENDA ITEMS—None
9. ADMINISTRATIVE REPORT—
City Manager Rymer thanked the IT team.We were recently notified about vulnerabilities in the
Microsoft Exchange email service. Mike Nolop and Keelan Cleary and worked hard to address
this and vulnerabilities were monitored and addressed. The website revisioning process is ongoing
and over 200 website survey responses have been received.The city is looking at the website
design through the lens of what the community needs rather than setup by department. Look at it
by what our community needs rather than by department.The State of the City Address is a few
weeks away. We are planning to bring forward a refined agreement regarding School Resource
Officers to the Tigard-Tualatin School Board, the Public Safety Advisory Board and then to
Council. The Library became fine-free a month ago.This is becoming the trend in libraries across
the country. The City Management Team is reviewing barriers to applying and examining ways to
streamline the board and committee applications process to make it more equitable. The budget is
being finalized.
10. EXECUTIVE SESSION—None.
11. ADJOURNMENT
At 9:05 p.m. Council President Lueb motioned for adjournment. Councilor Shaw seconded the
motion and City Recorder Krager conducted a roll call vote. The motion passed unanimously.
Yes No
Councilor Newton x
Council President Lueb x
Councilor Shaw x
Mayor Snider x
Councilor Goodhouse x
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Carol A. Krager, City Recof er
Attest:
Jason B. Snider,Mayor
Date: r t ;2d4 J
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