6A • December 15, 2017 | Cannon Beach Gazette | cannonbeachgazette.com
Councilors concerned about high maintenance costs
projects by the board and
the committee and talk more
clearly about what we need in
terms of cash flow and rates,”
St. Denis said.
Water from Page 1A
homeowner’s water bill from
about $50 a month to about
$70. The increase would be
phased in over five years and
generate $2.1 million and
$1.6 million for water and
wastewater projects.
But many of the council-
ors questioned a rate increase
that would only partially fi-
nance projects. Some worried
without full funding from
rates, the system would not be
maintained and would eventu-
ally depreciate. Others raised
questions about whether com-
mercial outfits were paying
enough under the current rate
structure.
“We have this need — it
is well-established — and we
are only going to get half of
it funded? That doesn’t make
sense to me,” City Councilor
Mike Benefield said. “If we
don’t have the funds, we’re
going to be back to square one
when our water system isn’t
paying for itself.”
The city plans to hold a
public hearing in February
before implementing any
changes. But for now, the city
is considering approving just
A different approach
BRENNA VISSER/CANNON BEACH GAZETTE
Public Works Director Jim Arndt and Matt Wadlington of
Civil West Engineering Services discuss rate increases at a
work session Tuesday.
the first year of rate increases
proposed in the five-year plan,
which would increase the cu-
mulative water, wastewater
and stormwater base rate by
16 percent from this year to
next — about an $8 difference
for the average residential
ratepayer.
City Manager Bruce St.
Denis and Public Works Di-
rector Jim Arndt recommend-
ed revisiting the issue after
designing a five-year capital
project schedule. The plan
would impact rates annually
by accelerating or slowing
increases depending on what
projects are planned for each
fiscal year.
“Instead of locking into
a rate schedule, let’s vet the
Approving the plans and
the rate increase to fund it
stalled earlier this year after
committee members raised
concerns about how projects
were prioritized and discrep-
ancies within the rate study
completed by Civil West En-
gineering Services.
Since May, the committee
worked with Arndt to eval-
uate the benefits and draw-
backs of funding the whole
master plan versus just a per-
centage, different rate struc-
tures and payment phase-in
options.
The committee opted to
recommend financing only
the water and wastewater
master plans partially in an
effort to lessen the overall
impact to ratepayers and in-
centivize the city to find alter-
native funding through grants
and bonds.
The
committee
also
thought funding only half
the plan would encourage the
city to prioritize financing the
most urgent projects.
“The (public works com-
mittee) has reservations
about the priorities and the
reasoning and explanations
for some of the projects,” the
committee wrote in a letter
to the City Council. “We are
recommending you adopt the
plans because they are a good
starting point for evaluating
our water and wastewater
systems.”
But Arndt cautioned coun-
cilors that while the city al-
ways seeks out grants to fund
projects when applicable,
funding less than 100 percent
would likely not keep up with
depreciation of the system
over the 20-year life of the
plan.
“After 10 years of no in-
creases, we’re just catching
up,” Arndt said.
Benefield and Councilor
George Vetter said they felt
the increase was relatively
nominal in comparison with
what could be accomplished
with the revenue if the plans
were funded fully.
“If this is what it costs to
have water, then this is what
it costs. Why pull from other
Nancy Benson, opera-
tions manager of PPC Hold-
ings, confirmed Bell’s with-
drawal.
In Design Review Board
hearings earlier this year,
Bell had requested approval
for major modification to an
existing commercial build-
ing for the purpose of open-
ing a high-end retail canna-
bis dispensary.
In August, Bell provided
plans for exterior building
and landscaping upgrades,
but the board asked for a
more detailed plan for the
property, owned by Limnes
Investments LLC.
Bell was granted a con-
tinuance and asked to re-
turn in October with revised
plans. When he failed to ap-
pear or submit revisions, his
application was rejected.
Bell owns and operates
dispensaries in Lincoln,
Coos and Tillamook coun-
ties.
In 2016, he attempted to
open a retail marijuana shop
in a condominium complex
near Pier 39 in Astoria. The
store did not open, however,
after the Astoria City Coun-
cil decided the Planning
Commission had not proper-
ly considered the residential
nature of the site.
Two separate applications
for retail cannabis dispen-
saries remain active in Can-
non Beach, Oregrown at 215
S. Hemlock and Five Zero
Trees at 140 S. Hemlock.
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Cannon Beach Gazette
COLIN MURPHEY/
EO MEDIA GROUP
ity of life would be enhanced
without them,” Kabeiseman
said. “The plan says, ‘the fun-
damental principle of the plan
is to foster a community with
a strong sense of place which
provides its residents the qual-
ity of life that they desire.’ The
plan requires city councilors to
consider what quality of life
means to the city. The vote
of the people is one way they
can see it, and Cannon Beach
voted to not prohibit marijuana
facilities.”
There were other points
Frei had made about the plan
the attorney did not address in
the memo. The fact Five Zero
Trees operates multiple stores
across Oregon, Frei argues,
conflicts with the plan’s guide-
line to promote “small-scale,
family-owned” businesses and
the plan’s goal to “encourage
the provision of permanent
housing in downtown by pro-
viding zoning incentives for
mixed-use structures which
incorporate housing.”
Kabeiseman said in the
interest of time he narrowed
down some of Frei’s points
in an effort to “capture the es-
sence” of his concerns about
quality of life and character.
But Frei disagrees with
Kabeiseman’s interpretation.
He still asserts issues with the
application process that led to
the eviction of three residents
should be enough for the city
to deny Five Zero Trees a busi-
ness license.
“When (the plan) was writ-
ten, they weren’t thinking of
marijuana stores yet,” Frei
said.
Other than a sign permit,
Five Zero Trees has all the
appropriate permits to oper-
ate, City Planner Mark Barnes
said.
City Councilor George Vet-
ter said because retail marijua-
na legalization has been voted
on twice — once statewide and
again locally — that the out-
come of the elections should
be respected as what the peo-
ple want.
“This is a democracy, even
if the vote was won by 13
votes, the community has de-
cided,” Vetter said.
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While agreeing with the
needs of the system, Mayor
Sam Steidel was wary of any
more increases that could im-
pact ratepayers, and suggested
exploring ways for the city to
use lodging tax revenue to help
fund projects.
“The number of day-trip-
pers we have is an abuse on the
system,” Steidel said.
Councilor Nancy McCar-
thy also questioned whether a
different type of rate structure
could be explored to make sure
commercial customers were
“paying their fair share.”
Bob Reid, a member of
the Public Works Committee,
agreed with McCarthy’s in-
quiry, arguing the commercial
outfits that attract thousands
each year play a role in the
degradation of the water and
sewer system.
“If you charge commercial
businesses, they pass it onto the
tourists, which are largely the
reason why we have to support
a system built to support 10,000
people for a town with only
1,700 residents,” Reid said.
Pot from Page 1A
By Brenna Visser
After months of controver-
sy, Cannon Beach found there
are no conflicts between the
comprehensive plan and retail
marijuana shops.
The city’s land use attorney,
Bill Kabeiseman, gave a report
to the City Council Tuesday,
Dec. 5, that asserts having
marijuana shops downtown is
fully consistent with the plan,
which acts as the city’s consti-
tution for development.
A discussion about the
comprehensive plan and how
it relates to marijuana retailers
was prompted by David Frei,
the acting spokesman of the
Ecola Square Homeowners
Association, who for months
has objected to the marijuana
retailer Five Zero Trees mov-
ing in across the street at 140
S. Hemlock.
At previous City Coun-
cil meetings, Frei has argued
allowing Five Zero Trees
so close to a residential area
would be detrimental to “the
unique character of down-
town” and out of step with
the plan’s goal to provide its
residents “the quality of life
that they desire.” He also
claimed the crime he believes
is associated with marijuana
retailers would be in conflict
with plan’s goal to preserve “a
sense of safety.”
But according to Kabeise-
man, the statement of policy in
the comprehensive plan is gen-
eral, and does not identify any
particular uses that are pro-
hibited. None of the identified
provisions mention or discuss
marijuana in any way. The or-
dinance that spells out where
and how marijuana shops can
operate does not violate the
plan just because it allows for
marijuana facilities to exist, he
said.
“What I think would im-
prove quality of life and what
you think would improve
quality of life is not necessar-
ily going to mesh. I love sea-
food restaurants, but if you are
allergic to seafood, your qual-
Restructuring
Bell withdraws application
for Hemlock Street location
Pot shops get green light in Cannon Beach
Attorney finds
no conflicts with
comprehensive
plan
sources other than rates?” Vet-
ter said.
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