Milwaukie City Council Meeting Summary - December 16, 2025
Milwaukie City Council Meeting Summary - December 16, 2025
This meeting featured updates from the City Court, a detailed presentation on the Kellogg Creek restoration and modernization project with the City Council leadership team, and a dialogue with PGE leadership regarding grid capacity and rate impacts. Key discussions centered on the logistical challenges of the Kellogg project, specifically regarding sewer line relocation and shared-use path flooding, as well as city concerns over utility rate increases and data center cost allocation.
Consent Calendar
- No specific consent calendar items were explicitly listed or voted on in the provided transcript segment.
Public Comments & Testimony
- Councilor Mass and Councilor [Last Name Unknown] expressed concern regarding the city's financial capacity to absorb the costs of the Kellogg project, specifically the potential $5$ million sewer relocation cost, without triggering rate hikes. They emphasized the need to explore all funding avenues, including the Clean Water Revolving Loan, to protect ratepayers from increases beyond the projected $2.75%$ annual rate hike over six years.
- Councilor [Last Name Unknown] (Data Center/Utility Representative) expressed strong skepticism regarding PGE's profitability, noting the company's nearly $300$ million net profit and $9%$ shareholder return. They argued that PGE should absorb storm-related repair costs and right-of-way fee surcharges rather than passing them to ratepayers, questioning why the utility cannot "eat" a $5$ surcharge increase.
Discussion Items
Court Update (Judge Graves & City Court Staff)
- Court Operations: The court is transitioning to a cloud-based recording service and anticipates equipment updates within the next year. A new "Court Specialist" position is being hired to manage an increasing caseload driven by traffic citations and code enforcement.
- Caseload Trends: Traffic violations remain the primary driver, with B violations at $265$ and C violations at $165$ being most common. There is a noted increase in attorneys representing defendants, which may be due to economic factors affecting the ability to fight citations.
- Credit Card Fees: A convenience fee of up to $3%$ has been approved by the Council for credit card payments on fines. Implementation is pending the acquisition of a payment processor.
- Enforcement Technology: Police research is underway for stationary red light and speed cameras, with RFPs expected in spring and implementation targeted for next summer, potentially at NE 224th and OR 99.
Kellogg Creek Restoration Project Update
- Leadership Team: April McEwen (River Lord), Karen Capman (ODOT), Shelley Romero (ODOT), and Amy Dan Ring (North Clackamas Park & Recreation District) presented the project status. The project goal integrates dam removal, fish passage, bridge modernization, and habitat restoration.
- Shared-Use Path Flooding: The value engineering study confirmed that the baseline path design, which passes under the Washington Street Bridge, will experience flooding for four months a year (March–June). At the low point, water depth could reach $6.5$ to $7$ feet, necessitating a four-month closure or active management, which is resource-intensive and presents safety risks. Alternatives involving tunnels were deemed infeasible due to ADA grade requirements (max $5%$) and safety concerns.
- Sewer Line Relocation: The existing $8$-inch gravity sewer line obstructs the new creek profile. After evaluating $9$ alternatives, the team concluded a pump station is required regardless of the solution. The recommended alternative involves relocating the sewer line, raising it over the creek where possible, and installing a new pump station at 28th Avenue to connect to an existing force main.
- Funding & Timeline: The city's $1$ million URA contribution is critical for leveraging Metro and federal funds. There was a disagreement on priorities; the project team urged early decision-making to stay on track for federal funding (deadline December 2027), while the City Council expressed caution about committing CIP funds without full federal certainty, fearing stranded assets if funding is delayed.
- Timeline Milestones: The city is considering including the sewer relocation in the April CIP application deadline for the Clean Water Revolving Loan. A draft response to the Council's letter is expected before the February CIP meeting.
PGE Leadership Presentation (Larry Beckdal & Heidi Bell)
- Grid Capacity & Data Centers: PGE noted significant growth in demand due to heat pumps, EVs, and data centers (avg $100$ MW per facility). The existing transmission system is near capacity.
- Rate Structure (UM 2377): PGE proposed a three-year rolling review where data centers pay a higher rate (projected $25%$ increase) to cover new infrastructure costs, which would allow residential rates to remain flat or potentially dip. Council members emphasized the legal requirement that data centers pay for the full cost of infrastructure. PGE clarified this is an ongoing review, not a one-time three-year exemption.
- Affordability & Storm Costs: PGE stated they set aside funds for storm repairs but recover excess costs via ratepayers if estimates are exceeded. PGE defended not absorbing costs like the $5$ right-of-way fee surcharge, citing the necessity of profit for shareholder returns and capital access, though they noted a $25$ million expense reduction for the current year.
Key Outcomes
- Sewer Relocation Recommendation: The project team officially recommended the sewer relocation with a new pump station at 28th Avenue as the lowest-risk option, though no final decision has been made pending further technical evaluation of city capacity.
- Path Maintenance Strategy: The city must prepare for a shared-use path closure period of approximately four months annually during high water, or commit to active maintenance resources to manage the flooding.
- Funding Decision Points: The Council will review the Sewer Relocation proposal in the context of the February CIP draft. An application for the Clean Water Revolving Loan is targeted for April, contingent on the city's decision to proceed with the sewer work.
- PGE Rate Review: The Council requested written details on the data center rate structure (UM 2377) and the specific calculations for cost causation to ensure they are paying the full cost of new transmission infrastructure.
- Next Steps: A follow-up meeting is suggested before the February CIP meeting to review the written response on the Kellogg project, and PGE will provide further written clarification on the rate proposals and storm cost recovery mechanisms.
Meeting Transcript
Okay. Oh, yeah. Yeah, it's the line. All right. Starting relatively on our agenda. Um we'll start with um Mayor Graves and our court update. Um they win. Um, not often. Not often. But it is nice to have those names kind of in the back pocket for when it does come up. And that was one that we just hadn't had on our list. So we'll be able to use them for the current defendant that needs the assistance, but we also have the name going forward. And then a couple of the my other categories changes or things coming up at court. We started as a court of record not too long after I became the judge, so probably 2015, which means our equipment and our processes for recording hearings are the same from then, them, excuse me, from then. And see for the record, folks are changing to a cloud-based service now. Which will be uh, I think a vast improvement for how the recordings are all held at this time. And so we'll be looking at switching over that cloud-based service, uh, hopefully sometime in the next next year. And along with that, we will hopefully have an equipment update as well, since of course we've had the same equipment for 10 years. Um, but that'll come down to what it what it looks like cost-wise, what needs to be updated, what we can still keep up. But that's the ongoing conversation to make sure that our recording equipment is what we needed to have it in place. I guess I never thought about it, but your equipment is different than Willamette Falls equipment that they use for uh recording our meetings. Yes, our equipment is called it's called for the record, and everything we have equipment-wise comes from them. And then, of course, the computer program is from them as well. And is it in the same room where Willamette Falls is set up, or is it something you set up and take down every time? Mary gets to set it up and take it down each course. Wow, okay. Okay, wow. Is it is it just all about 10 years old? Is it just audio or is it video as well? It is just audio. That's what I thought. Yeah. Uh I think having the cloud storage will be probably the nicest upgrade. Um, not having to start store everything locally and search locally. Um, other update for the court was that we're in the process of hiring for a new position, which will be um some much needed relief. There was, of course, a COVID dip in cases, and now we are on the trajectory of back up, which means that the work at the court is moving back up as well and workload. So I'm told job description has been submitted to HR and the timing is based on HR's response as far as approving that description and then getting out a posting, but that should hopefully be happening in January. I can share that that has now been reviewed. Class comp was completed today, should recruit in early Jan. We were calling it a deputy court, I think the term we've landed on is court specialist and the law court manager, but this was made possible by the public safety fee. So thank you, counsel. Yes, and it's much appreciated to share the workload a little bit in the court because Mary's fielding calls and emails, and then of course, also being present in court each time we have a court session and processing all the cases as they come in, attorney requests, um, defendant requests. So she is fielding a lot of information. Um like I said, also being in court, uh dealing with each court day and scheduling those sessions as well. So much needed relief is coming in. Um and then the only other thing that I had heard of for the court, which uh I'm certain everyone in the room there knows more than I do, is the possibility of credit card fees um coming to the court and being added on to defendants um cases and payment plans, things of that sort. Um obviously that'll be a change in the court system to add those in. Um, but I'm sure everyone else there knows probably the process to how we landed there and if that is uh for certain coming or if it's still in the in the thought process. I've been voted and approved by council. Implementation has been rocked.
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