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07-25-2011 AgendaCITY OF WOODBURN CITY COUNCIL AGENDA JULY 25, 2011 - 7:00 P.M. KATHRYN FIGLEY, MAYOR DICK PUGH, COUNCILOR WARD I J. MEL SCHMIDT, COUNCILOR WARD II PETER MCCALLUM, COUNCILOR WARD III JAMES COX, COUNCILOR WARD IV FRANK LONERGAN, COUNCILOR WARD V ERIC MORRIS, COUNCILOR WARD V CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET 1. CALL TO ORDER AND FLAG SALUTE 2. ROLL CALL 3. ANNOUNCEMENTS AND APPOINTMENTS Announcements A. Please join us for the 48 annual Woodburn Fiesta Mexicana at Legion Park from August 5 -7. The event will highlight authentic Mexican food, great music and entertainment, soccer tournaments, a parade, and the very popular "Kids Zone" featuring inflatables, arts and crafts activities, and exciting games. Be sure to attend Friday evening, as the Fiesta Queen and the rest of the Court will be coronated during a ceremony at the main stage. And, new this year - Friday is "Senior Day ". Contact the Chamber of Commerce for $2 off admission tickets for those 55 and over. Appointments None. 4. COMMUNITY /GOVERNMENT ORGANIZATIONS A. Chamber of Commerce B. Woodburn School District C. Woodburn Unidos 5. PROCLAMATIONS /PRESENTATIONS Proclamations A. National Night Out 2011 Presentations B. Chamber of Commerce C. Budget Policies & Reduction Strategy 1 2 7 "Habra interl)retes aisl)onibfes I)ara agt4dfas 1)ersonas que no �abfan Ing(es, I)revio amer6o. Comnigfese a( (503) 98o- 2485... July 25, 2011 Council Agenda Page i 6. COMMUNICATIONS None. 7. BUSINESS FROM THE PUBLIC -This allows the public to introduce items for Council consideration not already scheduled on the agenda. 8. CONSENT AGENDA - Items listed on the consent agenda are considered routine and may be adopted by one motion. Any item may be removed for discussion at the request of a Council member. A. Woodburn City Council minutes of July 11, 2011 60 Recommended Action Approve the minutes. B. Planning Commission minutes of June 23, 2011 65 Recommended Action Accept the minutes. C. Crime Statistics through June 2011 Recommended Action: Receive the report. 9. TABLED BUSINESS A. Resolution to Close the Mill Street Grade Crossing Recommended Action Remove Resolution 1999 (closure of Mill Street Crossing) from the table and consider adoption of the resolution. 10. PUBLIC HEARINGS I2❑T-4 11. GENERAL BUSINESS - Members of the public wishing to comment on items of general business must complete and submit a speaker's card to the City Recorder prior to commencing this portion of the Council's agenda. Comment time may be limited by Mayoral prerogative. 69 73 A. Council Bill No. 2873 - Second Reading of Ordinance 2873 92 Adopting Building Division Fees for Inclusion in the Master Fee Schedule: Repealing all Building Fees and Charges that are Inconsistent with this Ordinance; and Setting an Effective Date Recommended Action After a second reading, adopt the Ordinance. July 25, 2011 Council Agenda Page ii B. Clarifying the Definition of Caliper for Trees 115 Legislative Amendment 2011 -01 (Woodburn Development Ordinance) Recommended Action Modify the proposed definition of "caliper" to remove the reference to large trees. Since significant trees are defined separately and without respect to caliper, this will clarify the method of tree measurement. Direct staff to return with an ordinance amending sections 1, 4 & 5 of the Woodburn Development Ordinance, as approved by the City Council. 12. PLANNING COMMISSION OR ADMINISTRATIVE LAND USE ACTIONS - These are Planning Commission or Administrative Land Use actions that may be called up by the City Council. None. 13. CITY ADMINISTRATOR'S REPORT 14. MAYOR AND COUNCIL REPORTS 15. ADJOURNMENT July 25, 2011 Council Agenda Page iii CITY OF WOODBURN NATIONAL NIGHT OUT 2011 WHEREAS, the National Association of Town Watch is sponsoring a unique, nationwide crime, drug and violence prevention program on Tuesday, August 2nd 2011 entitled "National Night Out'; and WHEREAS, the "28` Annual National Night , Out" provides a unique opportunity for the City of Woodburn to join forces with thousands of other communities across the country in promoting cooperative police - community crime, drug and violence prevention efforts; and WHEREAS, all citizens of Woodburn play a vital role in assisting the Woodburn Police Department through joint crime; drug and violence prevention efforts in Woodburn and is supporting "National Night Out 2011" locally; WHEREAS, it is essential that all citizens of the City of Woodburn be aware of the importance of crime prevention programs and the impact that their participation can have on reducing crime, drug abuse and violence in Woodburn; and WHEREAS, police- community partnerships and neighborhood safety and awareness cooperation are important themes of the "National Night Out" program, NOW, THEREFORE, I, MAYOR KATHY FIGLEY, do hereby call upon all citizens of Woodburn to join the Woodburn Police Department and the National Association of Town Watch in supporting the "28``' Annual National Night Out" Tuesday, August 2 ", 2011. FURTHER, LET IT BE RESOLVED THAT, I, MAYOR KATHRYN FIGLEY, do hereby proclaim Tuesday, August 2nd, 2011 as "NATIONAL NIGHT OUT" in the City of Woodburn. 1 2:15 PM Woodburn Area Tourism 07/19/11 Profit & Loss Budget vs. Actual Cash Basis July 2010 through June 2011 Jul'10 -Jun 11 Budget $ Over Budget % of Budget Income Advertising Income 500.00 Membership Dues Income Membership Dues Income 3,925.00 Membership Dues Income -Other 0.00 5,000.00 - 5,000.00 0.0% Total Membership Dues Income 3,925.00 5,000.00 - 1,075.00 78.5% OTIC Kiosk Maintenance 200.00 300.00 - 100.00 66.7 Rollover From Last Fiscal Year 571.37 Special Events Income Fiesta Payroll Reimbursement 1,972.50 2,000.00 -27.50 98.6% Flower Basket Income 12,650.00 1,500.00 11,150.00 843.3% Wine Down Cash Box Income 350.00 Wine Down Glass Income 370.00 Wine Down Income 2,155.00 Wine Down Vendor Income 3,850.00 1 2,850.00 385.0% Total Special Events Income 21,347.50 4,500.00 16,847.50 474.4% TOT Funds Tot Funds 48,000.00 TOT Funds -Other 0.00 48,000.00 - 48,000.00 0.0% Total TOT Funds 48,000.00 48,000.00 0.00 100.0% Transfer to Fiesta Income 1,000.00 Workshops & Seminars 140.00 Total Income 75,683.87 57,800.00 17,883.87 130.9% Expense Administration Benefits Kristin Graybeal 3,600.00 3,600.00 0.00 100.0% Chamber of Commerce 13,000.00 13,000.00 0.00 100.0 Payroll Heather Russell 3,643.63 3,800.00 - 156.37 95.9% Payroll Kellie Lemings 227.58 Payroll Kristin Graybeal 17,969.85 21,600.00 - 3,630.15 83.2% Payroll Rhonda Judson 676.99 500.00 176.99 135.4% Payroll Taxes 6,173.57 6,000.00 173.57 102.9% Administration - Other 0.00 Total Administration 45,291.62 48,500.00 - 3,208.38 93.4% Advertising & Marketing Print Ad 1,296.00 1,000.00 296.00 129.6% Trade Shows 0.00 211.00 - 211.00 0.0% Website Maintenance 625.00 600.00 25.00 104.2% Total Advertising & Marketing 1,921.00 1,811.00 110.00 106.1 Page 1 2 2:15 PM 07/19/11 Cash Basis Office Supplies Postage Printing and Copying Supplies Tech Updates & Repairs Office Supplies - Other Total Office Supplies Professional Support Canadian Trade Show Membership Dues; OTTA & OFEA NTA Membership OFEA Conference Oregon Governor's Conference Workshops & Seminars E Total Professional Support Special Events Expense Flower Basket Expense Wine Down Cash Box Expense Wine Down Entertainers Wine Down Expense Wine Down Glass Expense Total Special Events Expense Transfer to Fiesta Expense Travel and Expenses Car Rental Trade Show Exchange Rate Difference Canada Gas Trade Show Lodging -OFEA Lodging -OTTA Lodging- Tourism Conf. Lodging -Trade Show Meals Mileage - General Mileage -OFEA Mileage -OTTA Mileage- Tourism Conf. Mileage -Trade Show Parking Trade Show Phone Use Kristin Total Travel and Expenses Woodburn Area Tourism Profit & Loss Budget vs. Actual July 2010 through June 2011 Jul'10 -Jun 11 Budget 98.3 50.00 81.00 562.40 3.00 71.14 211.02 22.50 332.31 -68.64 13.00 300.00 640.33 300.00 500.00 295.00 295.00 640.00 1,000.00 295.00 300.00 250.00 200.00 377.40 2,357.40 1,795.00 3,062.00 350.00 1,750.00 3,755.00 426.00 9,343.00 1,000.00 62.30 110.38 19.85 111.87 300.00 58.08 230.00 120.44 300.00 367.12 400.00 630.83 430.00 431.14 360.00 72.50 50.00 131.36 200.00 82.00 50.00 422.96 300.00 35.33 2,832.16 2,620.00 $ Over Budget % of Budget - 287.00 4.3 340.33 213.4% 0.00 100.0% - 360.00 64.0 -5.00 98.3 50.00 125.0% 562.40 131.3% - 188.13 37.3% - 171.92 25.3% - 179.56 40.1 -32.88 91.8% 200.83 146.7% 71.14 119.8% 22.50 145.0% -68.64 65.7 32.00 164.0% 122.96 141.0% 212.16 108.1 Page 2 3 2:15 PM Woodburn Area Tourism 07/19/11 Profit & Loss Budget vs. Actual Cash Basis July 2010 through June 2011 Jul'10 -Jun 11 Budget $ Over Budget % of Budget Visitor Information Center Earlene & Dennis 576.00 900.00 - 324.00 64.0% Internet 429.99 570.00 - 140.01 75.4% Telephone 405.31 1,000.00 - 594.69 40.5% Volunteer Appreciation 272.80 304.00 -31.20 89.7% Total Visitor Information Center 1,684.10 2,774.00 - 1,089.90 60.7% Total Expense 65,069.61 57,800.00 7,269.61 112.6% Net Income 10,614.26 0.00 10,614.26 100.0 Page 3 4 2:16 PM 07/19/11 Cash Basis Woodburn Area Tourism Profit & Loss Budget Overview July 2011 through June 2012 Total Income Jul'11 -Jun 12 Income Advertising Income 1,500.00 Flower Basket Income 2012 12,000.00 Membership Dues Income 12,000.00 Membership Dues Income 4,500.00 Total Membership Dues Income 4,500.00 OTIC Kiosk Maintenance 300.00 Rollover From Last Fiscal Year 0.00 Special Events Income 47,084.00 Fiesta Payroll Reimbursement 300.00 Fiesta Proceeds 3,000.00 Total Special Events Income 3,300.00 TOT Funds Tot Funds 48,000.00 Total TOT Funds 48,000.00 Total Income 69,600.00 Expense Administration Benefits Kristin Graybeal 3,600.00 Chamber of Commerce 12,000.00 Payroll Heather Russell 3,888.00 Payroll Kristin Graybeal 20,400.00 Payroll Rhonda Judson 200.00 Payroll Taxes 6,996.00 Total Administration 47,084.00 Advertising & Marketing Website Maintenance 625.00 Total Advertising & Marketing 625.00 Canada Sales Mission Airfare Costs 450.00 Car Rental 100.00 Exchange Rate Difference 150.00 Gas 30.00 Lodging 450.00 Meals 400.00 Parking 50.00 Registration 500.00 Total Canada Sales Mission 2,130.00 Page 1 5 2:16 PM 07/19/11 Cash Basis Woodburn Area Tourism Profit & Loss Budget Overview July 2011 through June 2012 Total Expense 69,376.00 Net Income 224.00 Page 2 Jul'11 -Jun 12 NTA Additional Expenses, Meals, Etc 300.00 Airfare Costs 400.00 Lodging & Car Rental 900.00 Membership 640.00 Registration 1,100.00 Total NTA 3,340.00 Office Supplies Tech Updates & Repairs 250.00 Total Office Supplies 250.00 Professional Support Membership Dues; OTTA & OFEA 350.00 OFEA Conference 295.00 Oregon Governor's Conference 250.00 Total Professional Support 895.00 Special Events Expense Flower Basket Expense 11,500.00 Total Special Events Expense 11,500.00 Travel and Expenses Lodging -OFEA 150.00 Lodging -OTTA 200.00 Lodging- Tourism Conf. 300.00 Meals 400.00 Mileage - General 360.00 Mileage -OFEA 75.00 Mileage -OTTA 200.00 Mileage- Tourism Conf. 50.00 Phone Use Kristin 192.00 Total Travel and Expenses 1,927.00 Visitor Information Center Earlene & Dennis 600.00 Internet 475.00 Repairs & Tech Updates 250.00 Volunteer Appreciation 300.00 Total Visitor Information Center 1,625.00 Total Expense 69,376.00 Net Income 224.00 Page 2 CITY OF WOODBURN Proposed FY 2011/12 Financial Plan Budget Policies & Reduction Strategy Draft — July 8, 2011 City of Woodburn Budget Policies & Reduction Strategy FY 2011/12 • SECTION 1. ANNUAL REVIEW & POLICY A. Fiscal Res nonsi bil ity Per the City Council's 2011/13 Adopted Goals, it will be the policy of the City of Woodburn to return the highest level (or sustain the current levels) of service with the least amount of taxpayer investment, and to plan accordingly. B. Balanced Budget The City's Budget shall be balanced. For each fund, ongoing costs are not to exceed ongoing revenues plus available fund balances used in accordance with reserve policies. C. Budget Process The annual budget process is intended to weigh all competing requests for City resources within expected fiscal constraints. Levels of service will increase or decrease based on the availability of recourses. Requests for new programs made outside the annual budget process are discouraged. New initiatives will be financed by reallocating existing City resources to the services with the highest priorities. D. Fiscal Recommendations Consistent with the administrative responsibilities outlined in the Charter, the City Administrator will make fiscal recommendations to the City Council on all measures necessary to sustain current levels of service and avoid reductions in City programs, including the consideration by the City Council of new revenue sources if this is determined to be in the best interest of the community. E. Buduet Policies Undated Annually The City Council will review and adopt Fiscal Year Budget Policies on an annual basis. F. Yearly 5 -Year Forecast The City Council will review and approve the 5 -Year Forecast (see attached Exhibit A) on an annual basis. The forecast is an estimate of future revenues and expenses and is intended to serve as an estimate and a guideline for making sound financial decisions in the current fiscal year and budget preparation. The 5 -Year Forecast and the annual Budget Policies together will constitute the City's Annual Financial Plan. G. Policy Direction Consistent with their policy making role outlined in the Woodburn City Charter, the City Council is responsible for providing policy direction to determine the City's overall fiscal policy. In response to the fiscal recommendations made by the City Administrator, the City Council shall consider all measures necessary to sustain current levels of service and avoid reductions in City programs, including consideration by the City Council of new revenue sources if this is determined to be in the best interest of the community. H. Budvt Under the Woodburn City Charter, the City Administrator serves as Woodburn's Budget Officer. The Finance Director assists the City Administrator with preparation and presentation of the annual budget, budget administration and the day -to -day finance operations. The Budget Officer is responsible for the administration of the annual budget and may approve rI or disapprove the expenditures contained in the adopted budget if deemed in the best financial interest of the City. 1. Budget Administration As authorized by the City Charter, the City Administrator is responsible for taking actions necessary to keep expenditures within anticipated revenues, including initiating layoffs, re- organizations, downsizing, program reductions and adjustments to service levels. The City Administrator will inform the City Council informed as to any steps taken to reduce expenditures and, whenever possible, the Council will review the decisions and consider options during a mid -year budget review. • SECTION 2. DISCRETIONARY & DEDICATED RESOURCES A. Recognizing Financial Limits Woodburn will make a distinction between two different types of services; 1) those that are funded primarily from City discretionary resources and; 2) and those that are funded primarily from dedicated resources. B. Discretionary Resources The General Fund is the fund that collects discretionary resources to provide discretionary programs and services as recommended by the Budget Officer and approved as part of the City's cycle. The City will continue to fund these programs primarily from General Fund discretionary resources. These include police, park and recreation, economic development, land use financial services and other programs. C. Dedicated Resources Dedicated services (e.g., fees, grants, utility revenues, etc.) arc traditional City services that are provided primarily with dedicated funds. Dedicated recourses are subject to restrictions via state and federal law, grant agreements and contracts, City policy and ordinances. Frequently, these resources will be state or federal programs that the City administers locally, such as public safety programs or transportation grants. The City will fund these programs (i.e. speed and safety belt enforcement, etc.) primarily from dedicated resources. • SECTION 3. GENERAL FUND BUDGET (DISCRETIONARY) A. Annual Budget Goal The goal shall be to prepare a budget that maintains existing high priority programs supported by the General Fund while at the same time seeking savings wherever possible. Funding for lower priority programs will be reduced or eliminated to insure that expenditures remain in balance with resources. B. General Fund Emphasis The highest priority shall be to conserve General Fund discretionary resources to fund high priority programs as defined by the City Council and City Administrator. C. Maximize City Council's Discretion Wherever legally possible, revenues are to be treated as discretionary resources, rather than as dedicated to a particular program or service. The goal is to give the City Council as much flexibility as possible in allocating resources to local priorities. D. New Revenues In order to sustain current levels of service, avoid reductions in public safety programs or increase services needed to meet community demands, the City Council may consider new discretionary revenues if it is determined to be in the best interest of the community. E. Use of Dedicated Funding Sources Whenever legally possible, funding responsibility for existing programs or activities should be transferred to appropriate dedicated funding sources, freeing up scarce discretionary resources to fund City Council priorities. ■ F. Cost Efficiency Staff will prepare fiscally conservative budgets and will seek savings wherever a balance between cost efficiency and the quality of public service can be achieved. G. Materials and Services Departments are to prepare "base budgets" with a goal of holding General Fund or other discretionary resources for materials and services expenditures to no more than FY 2011/2012 budget levels. H. No General Fund Street Maintenance Support No discretionary General Fund revenues will be used to support street maintenance activities. General Fund street lighting transfers are exempted from this policy. The current transfer from the General Fund for street lighting will be maintained as long as it is fiscally viable. The transfer will be reviewed as approved each fiscal year as part of the budget process. 1. Revenue Estimates Departments should budget for revenues based on the best information available during the budget process. If additional information becomes available during the budget process, it should be provided to the Finance Directors Office. Accuracy in revenue /expenditure estimates is critical. New revenue estimates should be based on the best information available. Subsequent annual estimates should also take into consideration the actual receipts from the previous year. J. Pursuit of New Departmental Revenues Departments shall pursue revenue sources to the fullest extent possible for all services as well as total cost identification (including indirect costs) for fee setting purposes, grants or other funding opportunities. Arty new revenue sources should be used to offset the cost of existing staff and programs, rather than funding new staff or programs. Fee schedules will be reviewed annually to ensure costs are recovered. Fee schedules will be updated as part of the annual budget process. K. Expenditure Reductions Reductions in revenues may require expenditure reductions from the "base budget" level. If reductions are required, the City Administrator will be guided by the City Council's adopted Resource Reduction Strategy. L. Discretionary Programs New discretionary programs may be included in the Proposed Budget with the prior approval by the City Administrator and if the new program is deemed a high priority activity. The impact of new or expanded programs on overhead services (information system services, financial services, building / grounds maintenance, human resource services, budget services, etc.) shall be evaluated to determine if overhead services need to be increased due to the addition of new programs. The costs of increases in overhead services attributed to additional programs shall be included in the analysis of the total cost of new programs. Should outside funding for a program expire, the program may be terminated by the City Administrator or the City Council. M. Full Cost Recovery City staff shall make every effort to assign costs where they occur through the use of interdepartmental / interfund charges and indirect cost percentage assignments. The intent is to clearly define the actual cost of each direct service the City provides internally or externally. The first priority is the recovery of overhead costs from all funds and grant programs and through the use of the City's Indirect Cost Program /Methodology. N. Annual Budget Savings To the extent General Fund supported departments experience savings during the year (due to position vacancies, etc.) that money should not be spent. Instead it should 10 be saved to augment the beginning fund balance for the next fiscal year except as approved by the City Administrator. • SECTION 4. NON - GENERAL FUND / UTILITY BUDGETS (DEDICATED) A. Bottom -line Emphasis For activities or programs funded primarily from non - General Fund sources, Departments are to prepare "base budgets" with a goal of holding any General Fund contribution to no more than the amount provided in the current(201 I / 12) fiscal year, subject to the availability of funds. Whenever possible, reductions in General Fund contributions should be achieved. B. No Backfilling General Fund discretionary dollars will not be used to back -fill any loss in water and /or sewer City utility revenue, state - shared or federal revenues, grants or dedicated funding programs (for further information, see the Resource Reduction Strategy). C. Revenue Estimates Departments should budget for revenues based on the best information available at the time the budgets are prepared. If additional information becomes available during the budget process, it shall be provided to the Finance Department. New revenues should be estimated based on available information the first year. Subsequent annual estimates should also take into consideration actual receipts from the previous year. D. Overhead Cost Allocation Charges All non - General Fund departments should budget the amount allocated to that department in the City's Indirect Program /Methodology. E. Cost Efficiency As with the General Fund, staff responsible for non - General Find budgets will prepare fiscally conservative budgets and will seek savings wherever a balance between cost efficiency and the quality of public service can be achieved. F. Utility Revenue allocations It is the policy of the City of Woodburn that revenue generated by City owned utilities will be split between capital funds and operating expenses in a manner consistent with Woodburn's Capital improvement plans and operating requirements. The allocation, or split, of these revenues will be approved annually as part of the budget processes. G. General Fund Transfer Savings With the exception of required "hard - dollar" grant matches, any unused or unneeded portions of budgeted General Fund transfers to non - General Fund budgets will be returned to the General Fund at the end of the fiscal year in order to increase the General Fund ending balance. H. Utilitv Rates The City will maintain utility rates at a level that insures that all debt service, operating and capital costs are adequately recovered. Capital costs identified in approved capital improvement plan will be used as the basis for forming the capital costs recovery portion of utility rates. 1. System Development Charges As permissible under state law, the City will pursue the recovery of infrastructure related development cost relating to water, sewer, street, storm and parks. These costs will be delineated via a defensible methodology, which will be revised from time to time to ensure accuracy. J. Street SDC Minimum Reserve The Street SDC Fund will not be depleted below $4 million until after the City's contribution to the Woodburn Interchange Project has been satisfied. A 4 11 Street SDC Fund balance of $4 million will be held in reserve and dedicated towards any balance outstanding on the City's contribution to the 1 -5 Interchange Project. • SECTION 5. FUND RESERVES & CONTINGENCIES A. General Fund Contingencies At least 10% of the General Fund's operating appropriation shall be placed into the operating contingency to meet cash now needs and with the expectation that most will not be spent and will become part of the 2012/2013 Beginning Fund Balance. The General Fund operating contingency for 2012/2013 shall be increased if carryover resources are available in accordance with recommendations provided in the City's long -term financial plan. B. General Fund Continuency Proportionality Where contingency is expended: overall reductions will be made to the General Fund to ensure the remaining contingency remains at 10% of the General Funds operating costs. C. Water & Sewer Fund Contingencies The Water and Sewer Funds will maintain annual contingencies of not less than 5 %. • SECTION 6. GRANT APPLICATIONS (ALL FUNDS) A. Approval to Pursue The City Administrator's approval is necessary before any employee pursues lobbying efforts on matters having budget implications, and before grant applications are submitted to the granting agency. Department Heads should advise the City Administrator before official positions are taken on matters that might have budget implications. B. General Fund Matching Funds Upon approval by the City Administrator, matching fund requirements will be presented to the City Council for final approval. • SECTION 7. NEW POSITIONS, PROGRAMS AND OVERTIME (ALL FUNDS) A. Base Budget & New Positions Departments are to prepare "base budgets" with no new regular positions unless specifically authorized by the City Administrator in advance of Budget preparations. Reorganizations of departments or programs resulting in changes in staffing or positions may be considered if the change is cost neutral or a cost savings from the current costs. No position compensation or increase will be provided beyond amounts budgeted for the position. B. Considerations of New Positions /Programs Consideration of new programs and positions will occur only if the cost of the position or program is offset by non - General Fund sources legally tied to the new position or if the cost of the position is offset by new external revenues, reductions within existing funds and /or the position is required to generate those revenues. Cost estimates for new positions will include office facility space, equipment, rent, utilities, supplies, related increases in overhead services, etc. Additional personnel or programs shall be requested only after service needs have been thoroughly documented or after it is substantiated that the new employees will result in increased revenue or enhanced operating efficiencies. C. Annual Overtime Budgets Departments will anticipate their annual overtime costs to be included the Proposed Budget. Once the Budget is adopted, overtime costs are to be managed within adopted levels. No overtime costs can exceed budgeted levels without first obtaining the authorization of the City Administrator. 12 • SECTION 8. MID -YEAR BUDGET REDUCTIONS A. Revised Revenue or Expense Estimates If additional information concerning revenue reductions or significant expense increases becomes available after the start of 2011/12 fiscal year, it may be necessary to make budget adjustments. These adjustments will be made in accordance with the City Council's adopted Resource Reduction Strategy. • SECTION 9. MID -YEAR REQUESTS, GENERAL FUND CONTINGENCY (ALL FUNDS) A. Non - Emergency Requests In those cases where a department is required to absorb an unanticipated cost beyond its control of a non - emergency nature, departmental resources must first be exhausted prior to a transfer from General Fund contingencies. Upon conducting a final financial review of departmental budgets towards the end of the year, a transfer from contingency will be made to cover unanticipated costs that could not be absorbed throughout the year. B. Emereency Requests Emergency requests during the fiscal year will be submitted to the City Administrator for recommendation and forwarded to the City Council for consideration. • SECTION 10. COMPENSATION & BENEFITS (ALL FUNDS) A. Wage Policy Historically, the biggest factors forcing budget growth are increases in employee compensation and increased benefit costs. The City will have a compensation and benefit program that: I) reflects the value of work performed by our employees, 2) compares favorably with the compensation and benefits paid for similar work in both the private and public sectors, and 3); considers the community's ability to pay. Both our employees and the public must understand the mutual respect that such a policy warrants. B. Health Care & PERS Costs Continue the City's policy on wages and salary increases which evaluates the increased cost of health insurance and PERS contributions as part of the total compensation package. It is the goal of the City to reduce annual escalations of health insurance, and other benefit costs by getting the employees to bear an equitable portion of the annual premium increases and /or selecting lower cost benefit programs. C. Cost of Livinu Adjustments (COLA) The City Administrator will make a recommendation either to include, or not include, a COLA for non - represented employees in the Proposed Budget. All cost of living adjustments will be approved by the Budget Committee and adopted by the City Council. COLAs or other compensation provided for in collective bargaining agreements will be provided for in the annual Proposed Budget. D. Step Adjustments Budgeted personnel services expenditures will include an amount to account for annual step adjustments for all employees who are not currently at the top of their range. Annual employee step adjustments will not exceed 5% without the expressed permission of the City Administrator. • SECTION 11. BUDGET CONTROLS A. Legal Compliance The City Administrator and Finance Director will continue to review and control departmental budgets at the "expenditure category level" (such as personnel services, 0 13 materials and supplies). As such, City Administrator's approval is necessary before actual or projected year -end expenditures are allowed to exceed total expenditure appropriations for each "expenditure category." B. Personnel Services & Benefits With the exception of overtime pay and temporary help accounts, which shall be developed by Department Heads with the advice of the Finance Director and the approval of the City Administrator, personnel services and benefits cost calculations will be provided by the City Administrator and the Finance Director and will be used as provided. The City Administrator and the Finance Director will also provide estimates for insurance and internal services costs. These amounts will not be altered by Department Heads. C. Wages & Benefit Control Positions not entitled to receive benefits will be managed in a manner that keeps them below mandatory benefit thresholds (such as PERS, health insurance, etc.). Positions will only be eligible for benefits if approved by the City Administrator and /or designated in Job Descriptions. All benefit costs must be anticipated and included in the annual Budget. D. One Time Revenues One -time revenues will be used only for one -time expenses. • SECTION 12. UN- APPROPRIATED ENDING FUND BALANCES (ALL FUNDS) A. Limit Unappropriated Ending Fund Balances To provide the most budget flexibility during the year, limit the use of unappropriated ending fund balances to circumstances where they are required by law. Rather than use unappropriated fund balances, the goal should be to place any monies not needed for current expenditures in the relevant funds' operating contingencies. • SECTION 13. CAPITAL IMPROVEMENT GUIDELINES A. Capital Improvement Program A six -year Capital improvement Program will be adopted as part of the annual budget process. It will include all projects anticipated to be initiated and /or delivered in the six -year planning period. The Capital Improvement Program will be consistent with the City's adopted Capital Improvement Master Plans. Funding availability will determine the rate at which Capital Improvement program projects are initiated or completed. B. Exceptions The City will fund dedicated programs and services with dedicated funding sources. Exceptions may be made, on a case -by -case basis, by the Budget Committee, City Council or by the City Administrator if appropriate. One criterion will be whether the City would incur more costs elsewhere as a result of the reduction. C. Capital Planning Consideration Recognizing that it does not necessarily make sense to fund current operations at the expense of long -term capital or planning programs, every effort will be made to continue capital and planning programs geared to the City's long term needs. • SECTION 14. DEBT ISSUANCE (ALL FUNDS) A. Debt Issuance The City will only issue debt in accordance with adopted Master Debt Resolutions for Sewer and Water. General Obligation debt will only be issued in compliance with state statutes. Debt will only be issued (for all fund types) when a dedicated resource is available to meet the required debt service and reserve. 7 14 B. Interfund Transfers Interfund transfers are allowed if the City Council determines the transfer to be in the best interest of the City. All interfund transfers will be managed consistent with state budget law. No debt will be issued without the approval of the City Administrator and authorization of the City Council. • SECTION 15. PROGRAM PRIORITIES A. Prioritization of Discretionary Resources The City will prioritize those services funded by discretionary resources. To the extent additional discretionary resources are available, high priority services areas will be slated for growth in discretionary support. Lower priority service areas will receive constant or decreasing discretionary support. The City's prioritization of services is as follows: Prouram /Service Priorities I. Police Patrol & Public Safety 2. Police Support Services 3. Financial Services 4. Legal Services 5. Land Use Planning 6. Economic Development 7. Code Enforcement 8. General Administration 9. Library 10. Aquatic Center H. Recreation Programming 12. Parks and Park/Tree Maintenance 13. Other General Fund Supported Non - Essential Program & Services 14. Computer/Network transfers (capital replacements of desktop pc's and associated servers) 15. Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.) 16. Community Services (i.e. flower baskets, TOT Grants — where permissible, etc. 17. Intergovernmental Agreements that provide no direct offsetting revenues • SECTION 16. RESOURCE REDUCTION STRATEGY (ALL FUNDS) A. Goal & Reduction Approach When faced with a potential reduction in resources, the City's goal is to continue to provide high priority services in a professional, effective and efficient manner. Consequently, to the extent possible, across - the -board reductions in expenditures will be avoided. B. Priority Goal In making expenditure reductions, the goal will be to reduce or eliminate funding for lower priority programs or services before considering funding reductions for higher priority programs. Wherever possible, it will also be the City's goal to reduce the quantity of a service being provided, rather than the quality of service (e.g., limit the number of recipients of a service, rather than the quality of service provided by the remaining recipients). C. Case -by -Case Consideration Reductions will be made on a case -by -case basis, focusing on each individual program or service. If possible, reduction will be made proportional to the priority programs and services identified by the City Council. 8 15 D. Moderation When Possible If, as a result of loss of a significant amount of discretionary resources, expenditure reductions become necessary, those reductions will be made in moderate case -by -case reductions in discretionary supported programs and services. These reductions will focus first on programs funded by dedicated resources and then low priority services funded by discretionary resources. E. Discretionary Contributions If further reductions are required, any discretionary funding that supplements or supports services mostly supported with dedicated resources will be reduced or eliminated. This may apply to programs or activities expanded or started with discretionary resources within the last few years. Exceptions may be made on a case -by -case basis, by the City Council. F. Furlough Days If personnel budget /salary saving are required, the City will consider a reduced work week or furlough days prior to laying off staff. G. Reduction Strateev - Order of Consideration Discretionary funding for programs funded by discretionary resources will be reduced or eliminated, starting with the lowest priority service area and moving on to higher priority service areas as needed. Legal restrictions or the City's ability to maintain minimal service levels will be considered. City service area priorities are: Order of Consideration I . Intergovernmental Agreements that provide no direct offsetting revenues 2. Community Services (i.e. flower baskets, TOT Grants — where permissible, etc.) 3. Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.) 4. Coin puter/Network transfers (capital replacements of desktop pc's and associated servers) 5. Other General Fund Supported Non - Essential Program & Services 6. Parks and Park/Tree Maintenance 7. Recreation Programming 8. Aquatic Center 9. Library 10. General Administration IL _ Code Enforcement 12. Economic Development 13. Land Use Planning 14. Legal Services 15. Financial Services 16. Police Support Services 17. Police Patrol & Public Safety H. Indirect Costs The City's overhead programs will not be prioritized, but will be sized to the need and size of the overall organization. Generally, wherever possible, the City's goal is to make fee - supported programs sell- sufficient. This includes recovering those programs' appropriate share of the City's overhead costs. If reductions occur, then indirect costs will be sized to the needs and size of the rest of the organization. I. Dedicated Funding for Priority Programs Where legally possible, the City will consider using dedicated resources to fund high priority programs related to the purpose for which the dedicated finds are received. 9 16 Five Year Forecast 2011-12 to 201 5 -16 EXHIBIT l Exhibit A A "M 17 City of Woodburn Five Year Forecast For Years 2011 -12 to 2015 -16 Table of Contents Introduction................................................................................................................... ............................... 5 Cityof Woodburn Background .................................................................................... ..............................5 Purposeof the Forecast.. .............................. I ....... I ................................................................................... 5 ForecastMethodology ................................................................................................ ..............................5 ExecutiveSummary ...................................... ............................... . 6 .................................. ............................... Overview.................................................................................................................... ............................... 6 Economic and Demographic Assumptions ................................................................ ............................... 6 Issuesin Coming Months ............................................................................................ ..............................7 Issuesin the Coming Year .......................................................................................... ............................... 7 IssuesBeyond One Year .............................................................................................. ..............................7 Issues for Administrative Attention ........................................................................... ............................... 8 GeneralFund ................................................................................................................... ..............................9 BuildingFund ................................................................................................................. .............................11 TransitFund ................................................................................................................. ............................... 12 StreetFund ................................................................................................................... ............................... 13 CityGas Tax Fund ......................................................................................................... ............................... 14 Street System Development (SDC) Fund ....................................................................... .............................15 WaterFund .................................................................................................................... .............................16 Water Well /Distribution Construction Fund .................................................................. .............................17 SewerFund .................................................................................................................... .............................18 SurfacewaterFund ......................................................................................................... .............................19 Sewer Treatment Plant Construction Fund ................................................................. ............................... 20 MaintenanceFund ......................................................................................................... .............................21 Exhibit A 18 RemainingFunds ............................................................................................................ .............................22 MajorAssumptions — Revenues ..................................................................................... .............................23 Major Assumptions — Expenditures ............................................................................. ............................... 25 Glossary .................................. ............................... .................... 26 ................................... ............................... Appendices ................................................................................................................... ............................... 28 Exhibit A 19 Introduction City of Woodburn Background The City of Woodburn is located in Marion County, Oregon, 18 miles northeast of the City of Salem along the 1 -5 corridor. Woodburn is located in Oregon's Willamette Valley which experiences a moderate climate. Woodburn has changed significantly in population since it was first incorporated in 1899. The city originally began as a small farming and manufacturing community. Beginning in the 1960's Woodburn became a suburb of Salem and Portland with its proximity to 1 -5. Over the past 18 years, Woodburn has grown 74 %. As of the census of 2000, there were 20,100 people residing in Woodburn. As of 2008, its population was estimated at 23,355, a net rise of 16.2% over 2000, ranking it the 21" most - populated city in Oregon. The median income for a household in the city was $33,722, and the median income for a family was $36,730. Males had a median income of $21,702 versus $22,606 for females. Purpose of the Forecast The 5 Year Financial Forecast takes a forward look at the City's revenues and expenditures with the purpose of identifying financial trends, shortfalls and issues so the City can proactively address them. Future results are projected based on the City's current service levels, policies and unavoidable future impacts. — which will likely include changes to the City's budget policy each operating fund's financial position under certain assumptions. The forecast then sets the stage for the upcoming budget process, aiding both the City Manager and Council in establishing priorities and allocating resources appropriately. Responsible financial stewardship is imperative to provide for the current and future needs of our community. Forecasting is one of the most powerful tools the City has available to help make informed financial decisions that will ensure the City's future vitality and economic stability. Forecast Methodology The City of Woodburn's approach to forecasting is to apply a conservative philosophy that neither overstates revenues nor understates expenditures. Economic forecasting is not an exact science. Rather, it is dependent upon the best professional judgment of the forecaster. To enhance the accuracy of projections the City identifies factors that contribute to the changes in revenues and expenditures, such as development, inflation, interest rates and known future events that will affect operations. Of the five years of forecast, the first year primarily reflects the adopted budget for 2011 -12. The remaining four years are based on a variety of assumptions applied to the 2010 -11 ending projections. These assumptions are explained in the Appendix. Our forecasting of operating costs embraces the concept of Status Quo. This concept assumes that the current level of service will continue for the next five years with cost changes based on inflationary Exhibit A 20 increases. This provides a baseline economic estimate from which reductions or increases in service levels can be determined. To the extent certain reductions or additions are anticipated, they are noted within the Fund section of this report. Exceptions to the status quo assumption are noted at the beginning of each fund. Forecasting of capital improvements to be funded from operating resources is based on available resources. To the extent possible, operations are funded first and remaining resources are allocated to fund capital improvements. This frequently means that improvements are delayed to achieve the matching. Improvements which are too expensive to be paid from net resources are assumed to be funded via bonded debt. The impact of issuing debt is reflected in the Debt Service portion of the fund forecasts. Grants and developer contributions for capital improvements are included when there is a reasonable assurance of receipt. Executive Summary operating revenues and costs. Our goal in assembling this report is to reveal trends, highlight financial issues, and provide suggestions and options. We look forward to feedback and input from the Budget Committee on these issues. Because the Fund Section and Appendices provide detailed fund information, the executive summary will focus on the most significant issues facing the City. We have also included an organization chart in the appendix to aid you in understanding the City's departmental structure. Overview The forecast model predicts that most operating funds will have sufficient resources to meet expenses resources. While this may seem alarming it is just an indicator. In reality, the City would not submit a proposed budget where costs exceed all available resources. The value of the forecast is that it allows us to predict where problems might occur and provides the City adequate time to take corrective action before the situation becomes a crisis. Economic and Demographic Assumptions Fears of a double -dip recession are fading. Recently, IHS Global Insight has changed their probabilities of their optimistic and pessimistic scenarios. They now have the chances of the optimistic scenario higher than the chances of the pessimistic scenario. The continuation of the Federal Reserve QEII (Quantitative Easing Part II) and fiscal policy extensions of tax cuts, bonus depreciation, and unemployment benefits will help boost activity in 2011. Near term economic signals point to continued economic growth in 2011 and beyond. Although this year looks very promising, the risk of headwinds still lingers on the horizon. As a result of recent economic downturn and slow pace of recovery, Woodburn's population is expected to continue a slow pace of growth in the near future. Oregon as a whole is expected to grow with an annual population growth rate of 1.1 percent between 2010 and 2017. Oregon and the City of Exhibit A 21 Woodburn's economic condition heavily influence the population growth. Woodburn's economy determines the ability to retain local work force as well as attract job seekers. Issues in Coming Months The City implemented the Aquatic Center turn around project. The focus of the program is to provide the opportunity for the Aquatic Center to become more self sustaining through cost recovery. As of this year projections for the center are for the center to break even. Based on those assumptions the center should see a savings of $225,000 in FY 2011 -12. Staff will continue to monitor the project to ensure the center is 'on- track'. As health care costs continue to rise and the uncertainty of the Universal Health Care Plan — staff is aggressively seeking alternatives to the current benefits structure and is focusing on finding a recommendation to bring to affected employees and employee groups. Issues in the Coming Year Sewer The Sewer Treatment Plant Project is near completing Phase I of the required improvements to the City's sewer system and treatment plant. As approved by the City Council in 2010 additional bonds totaling $23.5 million will be issued in FY 2011 -12 to fund Phase II of the project. Streets The Fifth Street Project will be completed in FY 2011 -12 with the addition of the signal at Highway 214 and Fifth Street. Issues Beyond One Year General Fund New demands for services will need either new resources or program cuts in other areas. Currently, — the City has applied for a three year grant to fund an additional entry level police officer for three years — with the remaining fourth year to be funded by the City. The challenge for the City will be to 'absorb' and fund the remaining fourth year in order to maintain an adequate level of service. Demand for park and recreation services are expected to continue to increase and put additional strain on the limited resources of the General Fund. In addition, City Hall and Library improvements will need to be made to improve those buildings security but due to funding issues the items has been tabled until the economy stabilizes. Transit As the economic downturn continues it will become increasingly difficult for the General Fund to sustain its $151,000 contribution to the transit fund. The transit operation will be aggressively seeking grants to fund operations and maintain current levels of service. Streets Due to economic conditions Street SDC revenues have remained flat and are expected to remain flat. The City has committed to provided $5.5 million to ODOT for the interchange project — of which the City Exhibit A 22 has currently reserved $4 million towards this obligation. The reserve amount and flat revenues have a direct impact on the City's ability to provide for street capital projects. Additionally, the City may need to finance the remaining portion of the obligation. Issues for Administrative Attention Not all of the issues that arise from the forecast need Council direction. Those listed here can be dealt with at an administrative level. The purpose of this forecast as noted previously is to point to areas of concern and allow staff and council to direct resources and focus to areas of need. This forecast is also intended to 'drive' the City's financial policies and assist in formulating need financial policies to guide staff and council in making informed decisions. Based on 'forecasted concerns' the following 'general' financial policies are being implemented: • Establish financial policies and procedures that can be managed effectively by the Finance Staff and City Administrator (these are currently being drafted). These policies should be monitored, evaluated and updated to ensure efficiencies gained are maintained • Establish debt issuance and management policies as well as policies concerning debt level and capacity. • Adopt policies and plans for capital asset acquisition, maintenance, replacement, and retirement. • Develop a capital improvement plan that identifies priorities and time frames for undertaking capital projects and provides a financing plan for those projects. The plan, including both capital and related operating costs, should project at least five years into the future and should be fully integrated into the overall financial plan. • Periodically evaluate the performance of programs and services. • Identify cost effective opportunities where performance, efficiency and effectiveness measures can be developed and included as part of the basic budget materials and budget document. • Monitor, measure and evaluate capital program implementation, especially for projects funded by restricted funds. • Identify programs that should be self - sufficient. • Review of established fees to ensure cost recovery is sufficient. • Establish and adopt cost recovery policies for all other services with fees and charges not established by state statute. Opportunities for new fees and charges will need to be determined as part of this process. • Continue to monitor indirect cost recovery for Internal Services Funds and evaluate the effectiveness of these charges. These indirect costs should be evaluated and updated periodically. Exhibit A 23 General Fund Variances from Status Quo Assumptions • Addition of one police officer — funded through Cop Grant through Department of Justice for Fiscal Years 2012, 2013, 2014 — in 2015 the position will need to be absorbed into the General Fund Key Assumptions • FY 2011 -12 first year of Aquatics Center cost recovery plan (assumed to recover 50% in each of • No increases to park maintenance program. Operating Position Property taxes account for almost 69% of the 16,000,000 annual resources in the General Fund. Tax 14,000,000 growth is expected to grow at 2% per year. 12,000,000 10,000,000 This number is projected to increase if there RA00,000 _ _... 6,000,000 _. __. _._.... _. _ -_- _.... _. _. _. — Revenue limits. Franchise fees are the second largest 4,000.000 - -- Ewoense revenue in this fund equating to 9% of total 2,000,000 - resources. Franchise fees are taxes based on - - -- - -- - - -- - - - - -- the gross revenues of utilities that use the , City's right -of -way. Private utilities doing business in the City of Woodburn include Portland General Electric, Northwest Natural, Qwest, United Disposal, Wave Broadband, Woodburn Ambulance and others. The only way this source of revenue will increase is if the private utilities revenues derived from Woodburn residents also increase. Intergovernmental is the third largest type of revenue at 7 %. This type includes state and federal grants, 911 tax (911 tax revenues are turned over to NORCOM for dispatch services) and state cigarette, liquor and gas tax. Capital Projects — From Operating Revenues Potential Impacts and Issues There are potential future demands that could increase costs in this fund; however, there are no available resources for these expansions. Potential future demands are explained below. Parks Maintenance — As demand continues to grow for the public's use of City parks, additional burdens are being placed on the City's General Fund to provide enhanced services. Additional staff hours are required for clean up and maintenance of these parks. With the completion of first phase of the City's Greenway project staff will asked to maintain the trail. These potential cost increases are not included in the forecasts Exhibit A 24 Police Staffing — Currently the local school district is experiencing the same budget difficulties as other jurisdictions within the State. The school district and the City share a School Resource Officer — with the district providing $45,000 towards the officer's funding. As budget tightens this funding could be lost. Funding alternatives As costs grow there either needs to be a corresponding reduction in other costs or new resources need to be generated. Possible new resources are presented below. Staff does not take a position for or against these options. They are presented for informational purposes. Franchise fees should be investigated in the upcoming fiscal year as a potential fund source. Franchise Fee — The City levies a franchise fee on private utilities for the use of the City right of way. Currently, the City does not levy this franchise fee on its own utilities. As revenues in the General Fund continue to remain flat another potential funding source for the fund could be to levy a franchise fee on the Water, Sewer and Surfacewater funds. The initial franchise fee could be set from 3% to 5%. Potential revenues raised would be from approximately $152,000 to approximately $254,000, in the first year. Exhibit A 25 Building Fund Variances from Status Quo Assumptions ■ Permit revenues are based on approved increases beginning in FY 2013 -14 and an expectation of increased commercial development in FY 2014 -15. Operating Position Revenues are based upon permits issued for new development and redevelopment that collected prior to the work being done and therefore cash balances exist to pay for services to be performed in the future. The downturn in new development starts. Future revenues are based on estimates of 1.400.000 -. __ ..._. _. .... 1,200,000 1,000,000 _.._. _..... 800,000 coo,000 — Revenue 400,000 _.. .._.- --- -... _. __. _ _ _ __ _ Expense 200,000 h b �0 $1 ao 16 , Do ti , ,�O , , , reflect cuts and reductions already in place. Potential Impacts and Issues Delays in developers submitting plans or starting construction will affect the bottom line. The City will closely monitor the actual revenues against the forecast and will take corrective action if necessary. This A return to a 'normal' level of development will necessitate a return to historic staffing levels. Restoring the additional Building Inspector /Plans Examiner and increasing hours for existing staff would add approximately $100,000 per year. Exhibit A 26 Transit Fund Variances from Status Quo Assumptions • None Key Assumptions • Ability to continue to obtain grant funding • General Fund contribution remains stable for forecast period • Fares remain consistent for forecast period Operating Position The City's Transit system provides bus 900,0W operations as well as Dial -a -Ride services for 800 disabled citizens. The Transit operation is '00,000 a funded by a contribution of $151,000 from 600,000 500,000 the General Fund, approximately $30,000 in '"DO —Re fare revenue with the balance made up from enue 200, —hpnw State and Federal grants. iao,oao } - - The graph depicts a future of expenditures exceeding revenues. A portion of the difference may be attributed to conservative estimates in payroll and materials and services costs. Management will continue to monitor the trends to ensure that a deficit does not occur and aggressively seek grant funding as it becomes available. Capital Projects — From Operating Revenues Replacement of buses and vans is done as- needed and historically they have been replaced when grant funding is available. Potential Impacts and Issues As revenue constraints continue on the General Fund it will become increasingly difficult to make the continued contribution to the Transit system. Management will need to address this concern in order to ensure that the needed contribution is maintained and perhaps increased. Exhibit A 27 Street Fund Variances from Status Quo Assumptions • Gas taxes are increased 6 cents per gallon on January 1, 2011 Operating Position Gas taxes distributed by the State are the i :so°,o°o primary resource for this fund. Taxes peaked in FY 2005 -06 and have been in decline since. 2,11,11 The 2009 Legislative Session approved 1,500,000 increases in vehicle title and registration fees 1,000,000 - - — Revenue which became effective in 2010 and a 6 cent — Expense per gallon (25 %) became effective January , 2011. A referendum petition to repeal the ! new law failed to collect enough signatures. ep , 1po 0 'o tio tio tio tio ,�oO,' 0 do do do do do Revenues should increase for several years due to the phase -in of title, registration and weight fees. Additionally, the Revenue Sharing Fund was collapsed into the Street and Local Gas Tax Funds (the construction portion of the Revenue Sharing Fund was transferred to the Local Gas Tax Fund). Street lights are now being paid for out of the Street Fund beginning in FY 2011 -12. State shared revenues are now transferred in from the General Fund to provide funding for that expenditure. Capital Projects — From Operating Revenues Replacement of buses and vans is done as- needed and historically they have been replaced when grant funding is available. Potential impacts and Issues As revenue constraints continue on the General Fund it will become increasingly difficult to make the continued contribution to the Transit system. Management will need to address this concern in order to ensure that the needed contribution is maintained and perhaps increased. Exhibit A 28 City Gas Tax Fund Variances front Status Quo Assumptions • None Operating Position In 1996 the City Council adopted a local gas 600,000 tax for all fuels sold within the City of 600,000 Woodburn of .01 cent per gallon. As 400,OM revenues are collected — the revenues are 300,000 reserved until such time there are sufficient 200,000 funds available to carry a local street 100,000 improvement project. — Revenue Expense ti cP 1 0° 1 0° 10°� 1 Capital Projects — From Operating ti °�° Revenues Two local streets (Second Street from Oak to Harrison Street and Walton Way) are planned to be resurfaced in FY 2011 -12. No other projects are planned until such time as adequate funding has accumulated to pay for additional projects or the reserved amount(s) can be leveraged for grant funding. Potential Impacts and Issues sufficient reserves become available, projects are planned and completed as part of the City's Capital Improvement Plan. Exhibit A 29 Street System Development (SDC) Fund Variances from Status Quo Assumptions • SDCs are forecasted to remain flat through FY 2015 -16 • Required $4 million reserve maintained throughout the forecast period Operating Position The Street SDC Fund is dependent on development occurring — the slowdown in the economy and the slow recovery have a direct impact on the fund's ability to carry significant capital improvements. In addition, the City has entered into agreement with the Oregon Department of Transportation (ODOT) to provide a multimillion dollar payment for the City's portion of the 15 Interchange project. As a result of that commitment a $4 million reserve will be maintained in order to meet the commitment with ODOT. 9,000,000 s,0oo,00a 7,000,000 - _.. _ ... 6,000.000 5,000,000 __.... -. -._ -._- __ - _- A. _.__ ..... 4,000,000 3,000,000 2.000,000 i,a00,000 _ J — Revenue fipenx o �,P 0 ^ o0 A a ti 0 0�,` ti��v ,ryti �� ypti l � ti h d o tr od' . ti dy ti o°' � . d o . . d o Capital Projects — From Operating Revenues Due to the reserve commitment ongoing capital projects will be limited. The completion of the Fifth Street opening and improvements are planned for in FY 2011 -12 with no other significant capital projects planned for the forecast period. Potential Impacts and Issues As SDC revenues are forecasted to remain flat it may become necessary to fund the difference between the commitment to ODOT and the $4 million reserve. A potential amount of $1.5 million may need to be borrowed depending on ongoing revenues. Exhibit A a Water Fund Variances from Status Quo Assumptions • Addition of 1 FTE — Water Quality Supervisor • User Fees increase by 5% beginning FY 2013 -14 Operating Position Revenues and treatment costs are driven by 3,000,000 — consumption — which due to increased 2,500,000 --- - conservations efforts by the City should 2,000,000 continue to decline over the forecast period. 1,500400 The 2001 Water Master Plan authorized the Revenue 1,000 ,000 City's last rate increase — those increases —Expe05e 500,000 ended in FY 2006. The 2001 Water Master Plan called for several treatment and raw water transmission line projects to be completed including the disinfection project (completed in FY 2007 and May 2011, respectively). As the graph depicts expenses will exceed revenues beginning in FY 2013 -14. This may be a result of conservative estimates in increases in associated payroll and materials and services costs. Management is monitoring these cost progressions and is working on recommendations any revenue short falls in Potential Impacts and Issues As personnel, material and services costs conservation efforts continue to increase levels of service will to address the next phase in the City's water system and continued efforts to maintain a high level of service. Exhibit A 31 Water Well /Distribution Construction Fund Variances from Status Quo Assumptions • Refinancing of current Water Loans with OECDD and DEQ Operating Position The purpose of this fund is to accumulate funds to provide for major capital improvements and /or expansion of the City's water system. For FY 2011 -12 — 40% of User Fees are being directed to this fund to be reserved for future capital projects. The current water system improvement loans and bonds are serviced from this fund. 10,000,000 eA00,000 8,000,000 7,000,000 6,000,000 6,000,000 _ 4,000,000 - - -- - - Revenue 3,000,000 I _ 2,000,000 Expense 1.000,000 j S o, ,o� 00 ti� ti° �� ti° Capital Projects — From Operating Revenues Three water line bore projects are planned for FY 2011 -12. Additional projects will be identified and completed as funding becomes available in ensuing fiscal years. Potential Impacts and Issues As personnel, material and services costs conservation efforts continue to the funding percentage available to reserve for future capital projects will be difficult to maintain. Management is recommending the 2001 Water Master Plan be updated to address the next phase in the City's water system and continued efforts to maintain capital reserve for unforeseen capital needs. Exhibit A 32 Sewer Fund Variances from Status Quo Assumptions • Rate increases of 9.5% per year through FY 2013 -14 Operating Position In 2007 the City entered a Mutual Order 5,000,000 Agreement with the Department of 4,500,000 Environmental Quality that called for 4 - ssoo,o ao to the City's a,000,000 !: 2,500,000 wastewater treatment plant and system as 2,000,000 — Revenue part of the approval of the City's wastewater 1,500,000 — treatment permit. The City implemented 1, 500,,000 . those improvements beginning in FY 2008 -09 as part of a 20 year plan – the total cost of oo�Q� ti ti ti ti ti , ti ti ti ti ti those required improvements will total $94 million. To date the City has issued approximately $19.5 million in loans for Phase I of the project. Phase II of the project will begin in FY 2011 -12 – an additional $23.5 million in loans /bonds will be issued to fund the second phase of the project. To fund the on -going capital projects the City Council approved rate increase implemented in FY 2008- 09 with the initial increases of 12.5 %. Additional increases will take place through FY 2013 -14 at 9.5% per year. Potential Impacts and Issues Adopted rates are providing adequate revenues to fund operations for the forecast period – management continues to monitor revenues and expenses closely to ensure rates remain adequate. Exhibit A 33 Surfacewater Fund Variances from Status Quo Assumptions • No dedicated Surfacewater fee included in forecast Operating Position In FY 2008 -09 the city implemented its Surfacewater program. The program is funded via a transfer from the Sewer fund. The program allows for the maintenance of existing surfacewater infrastructure and proactive monitoring of infiltration issues before it becomes an issue for the sewer system. Potential Impacts and Issues 00,000 . 350,000 300.000 250,000 200,000 150,000 - - - - .._ _.. — Revenue 100p00 r __._. -.. _ .._ -_ Expense i 50,000 �q'r ti oti oti� pti� p'l p'y�' As personnel, material and services costs conservation efforts continue to increase levels of service will — as no dedicated source of revenue exists to fund the program's operations. Funding Alternatives As costs grow there either needs to be a corresponding reduction in other costs or new resources need to be generated. Possible new resources are presented below. Staff does not take a position for or against these options. They are presented for informational purposes. Surfacewater fee should be investigated in the upcoming fiscal year as a potential fund source. Surfacewater Fee —The City levies a stormwater fee to each utility account with the City of Woodburn to fund the surfacewater program. Each dollar assessed on utility accounts would raise approximately $73,000. Exhibit A a Sewer Treatment Plant Construction Fund Variances from Status Quo Assumptions • Rate increases of 9.5% per year through FY 2013 -14 • Issuance of $23.5 million to begin Phase II Treatment Plant improvements Operating Position As approved by the City Council rate increases 30,000,000 have been instituted to allow for the funding of the required capital improvements to the zo,000,000 City's infrastructure (Phase 1) and treatment 15,000,000 plant (Phase 11 and 111). These user rates are — Revenue . split between the sewer operating and capital 10,000,000 Expense construction funds. As the graph depicts 5,000,000 Phase II debt will be issued in FY 2011 -12 and y ° °1 ^�4 a p a g ti o ti t , 1 ,�;�� ,�� p ti e y ,` b construction will begin in the ensuing fiscal ti ti ti p' ti ti � � ti °� ti °� -9" ti o� ti year and should be completed over a two to three year period. Capital Projects — From Operating Revenues User fees are allocated between operations and ongoing capital needs. That portion is being used to fund planned debt issuance of $23.5 million in FY 2011 -12 to begin Phase II of treatment plant improvements and expansion. Potential Impacts and Issues User fees (rates) will be closely monitored to ensure they are adequate to service outstanding and ongoing debt. Exhibit A 35 Maintenance Fund Variances from Status Quo Assumptions • None Operating Position The primary purpose of this program is to provide maintenance and custodial services to the City's buildings — City Hall, Library, Public Works buildings and Police campus. The total costs of the program are allocated to the using departments based on square footage. As the graph depicts revenues will continues to exceed expenditure but it should be noted that this is for basic maintenance services — no capital projects or improvements are planned as part of those on 1,000,000 900,000 1 o, 000 100,000 600,000 500,000 ..._. -. _ -..._ -. _... .._. __.. 400,000 _... - ___. __... __...._. — Revenue 300,000 200,000 ; _._._ Expense 100,000 # ti 01 ti� ti� ti� + Oyu 'o going costs. Potential Impacts and Issues As personnel, material and services costs continue to increase it will become increasingly difficult to provide funding for needed building improvements — those capital needs will be continued to be deferred. Exhibit A 0 Remaining Funds Fund Consolidation For FY 2011 -12 six funds are being collapsed into other funds for management efficiency. Those funds are: Fund 92 — General Fund Reserve; Fund 135 — State Revenue Sharing; Fund 252 — Bancroft Bond; Fund 378 — Public Works Facility Construction; Fund 461 — Sewer Capital Improvement and Fund 580 — Central Stores. These funds have limited activity or ongoing programs can be more efficiently captured within other funds. Remaining Funds The remaining twenty -two funds have dedicated revenue sources, are for a specific purpose, have nominal activity and /or will be retired in FY 2011 -12. These funds have not been included as part of the five year forecast. Some of those funds include: • Fund 358 — Police Construction — a small project will be completed in FY 2011 -12 • Fund 690 & 691 — Library and Museum Endowment — hold principal balance, only the interest earnings can be used on directed projects • Fund 138 — RSVP — grant funded activities • Fund S91 — Equipment Replacement — transfers are made from the Utility Funds and reserved for future equipment purchases • SDC Funds — Water, Sewer, Surfacewater and Park SDC revenues are expected to remain flat and therefore no significant capital projects are planned for the forecast period. Exhibit A 37 Major Assumptions — Revenues Major Operating Revenues The City received about $28.2 million in operating revenues last fiscal year. Approximately 70% of that total is accounted for in the eight revenue types noted below. The eight types are shown in the following table. Key assumptions for each revenue type are provided below Revenue Actual FY 2010 as % Property taxes $ 8,014,720 28% Franchise fees 1,096,533 4% Water fees 3,209,097 11% Sewer fees 4,946,628 18% Gas Taxes 919,897 4% Licenses & Permits 468,849 2% Use Fees 428,937 2% Total Major Revenues $ 19,084,661 The remaining $9.1 million in operating revenues includes interest income, court fines library and park fees, grants, state share revenues, loan proceeds and internal service charges. Revenue Assumptions Property Taxes — General Fund Taxes are based on assessed value which is determined by the county Assessor. Generally, assessed values grow by 3% per year as allowed by the State Constitution. There is no correlation between real market value and assessed value. In addition to the 3% growth, an estimate is provided for expected new development. The city's tax rate remains stable at $6.0534 per $1,000 of assessed value. Franchise Fees — General Fund These fees are assessments on the utility companies' gross receipts for using the City's right -of -way. Rates vary by type of utility — ranging from 3% to 8 %. Franchise fees are assessed on telecommunication, cable television, natural gas, electric utilities, ambulance and garbage. These Utility User Charoes Water: The forecast assumes a nominal 1% annual increase due to new development, with a forecasted rate increase beginning FY 2013 -14 Sewer: As with water, the forecast assumes a 1% annual increase for growth. A rate increase of 9.5% per year through FY 2013 -14 has been adopted by the City Council. Gas Tax HB 2001 passed in 2009 increases state gas taxes from 24 cents to 30 cents in January 2011. Most registration and license fees were increased in 2010. The impact of the increases will phase in over four years. The forecast estimates a 3% increase per year for the forecast period. Exhibit A I Building. Planning and Engineering Permits Permit revenues are based on identification of specific developments with assumptions based on which fiscal year the development is likely to begin. Other Resources Bond Sales One revenue bond sale is anticipated and is for the Wastewater Treatment Plan Project Phase II. The sale amount is estimated to be $23.5 million amortized over 20 years at 3 %. Transfers In — Oneratina Funds This category relates to services one fund, e.g. the Information Services Fund, charges another for services provided. These types of transfers are forecasted to remain stable over the forecast period. Overhead charges for engineering services are charged to capital projects on an hourly basis. Exhibit A 0 Major Assumptions — Expenditures Personal Services Combined wages and benefits are assumed to increase by 5% to 6% per year. Wages are expected to increase via cost of living adjustments of 2.5% to 3.0% plus an average 3% merit increase. Benefit changes are related to retirement and health insurance. Recently approved retirement increases are reflected in FY 2011 -12 with a 2% per year increase for the remaining four year period. Insurance is expected to increase by 10% in FY 2011 -12; 5% in FY 2012 -13 and remain flat for the remainder of the forecast period. This assumes significant changes to health care plans in the final three years of the forecast period. Material and Services Impacts of inflation are assumed to remain minor over the five years remaining stable over the forecast period at 3 %. Certain costs which are not affected by inflation are excluded from these estimates, e.g. insurance and workers compensation premiums. Capital Equipment The Public Works funds' maintain a replacement reserve for capital equipment replacement and is funded via transfers from the Water, Streets and Sewer funds. The General Services funds replace equipment on an as needed basis. Debt Service Estimates are based on amortization schedules for outstanding debt issues. One new debt in the Sewer fund is anticipated and is based on $23.5 million, 3 %, 20 -year repayment terms. Other Uses Transfers Out This is the counter -part to transfers in category. Transfers out from operating funds are primarily for administrative services provided by the Information Services and Building Maintenance Funds. Transfers out from capital project funds are primarily for engineering services and project administration provided by department within the Technical & Environmental Services fund. Exhibit A Glossary Add Packages An increase in the level of service provided and /or changes to revenues not previously approved by Council action. Available Balance Undesignated Contingency plus Recurring Revenues less Recurring Expenditures Capital Projects New Construction and major repairs to the City's fixed assets. Carryover Balance Operating Position Recurring Revenues and Recurring Expenditures Potential Impacts Refers to issues and challenges that are in addition to the status quo. The intent is to inform the reader of economic matters that might occur during the forecast period. Recurring Expenditures The expense portion of Status Quo, predictable and on -going costs. Recurring Revenues The resource portion of Status Quo, predictable and on -going revenues. Reserve Balance Fiscal year -end balance of cash that is restricted either by legal or policy decision. Examples include contingency is the primary component of this balance. Revenues Includes both Recurring Revenues and Transfers In. Status Quo The current level of services Transfers In Internal Charges by General Fund for services provided to other funds Exhibit A 41 Contingency The portion of a fund's balance that is not restricted for a specific purpose and is available for emergency appropriation via council action Exhibit A 42 Appendices Exhibit A 43 General Fund Revenues: Actual 2007 -08 Actual 2008 -09 Actual 2009 -10 Budget 2010 -11 2011 -12 2012 -13 Projections 2013 -14 2014 -15 2015 -16 Fund Balance Beginning Fund Balance Fund Balance Total Taxes 2,192,772 2,192,772 2,574,080 2,574,080 2,290,557 2,290,557 2,293,127 2,427,854 1,546,918 404,669 (935,838) (2,526,776) 2,293,127 2,427,854 1,546,918 404,669 (935,838) (2,526,776) 7,200,000 7,336,800 7,507,536 7,695,224 7,926,081 8,203,494 Property Tax 6,612,252 6,912,899 7,180,954 Property Taxes Delinquen Taxes Total Licenses and Permits 6,612,252 6,912,899 7,180,954 7,200,000 7,336,800 7,507,536 7,695,224 7,926,081 8,203,494 Business License Hotel /Motel Tax Other License Pmt in Lieu of Taxes Taxicab Permits Licenses and Permits Total Franchise Fees 38,565 238,518 6,964 36,552 - 320,599 30,165 270,987 6,815 30,835 - 338,803 47,795 214,782 4,754 26,979 - 294,310 38,000 220,000 2,500 30,000 2,500 38,000 220,000 2,500 30,600 1,000 38,000 220,000 2,500 31,212 1,000 38,000 220,000 2,500 31,836 1,000 38,000 220,000 2,500 32,473 1,000 38,000 220,000 2,500 33,122 1,000 293,000 292,100 292,712 293,336 293,973 294,622 Franchise Fee Reconex - - - _ - Franchise Fee Sprint - 179 - - - Franchise Fee, Gervais T Franchise Fee, NW Natura Franchise Fee, PGE Franchise Fee, Qwest Franchise Fee, United Di Franchise Fee, W Ambulan Franchise Fee, Wave BB Matrix 20,718 172,339 604,923 96,356 111,918 11,483 68,382 58 19,033 169,120 568,945 84,041 106,651 14,354 53,101 - 24,698 145,722 621,269 84,058 100,199 8,613 75,616 - 16,000 180,000 600,000 85,000 105,000 10,000 65,000 - 16,160 181,600 606,000 85,850 106,050 10,100 65,650 16,322 183,618 612,060 86,709 107,111 10,201 66,307 16,485 185,454 618,181 87,576 108,182 10,303 66,970 16,650 187,309 624,362 88,451 109,263 10,406 67,639 - 16,816 189,182 630,606 89,336 110,356 10,510 68,316 Preferred LD Franchise 493 572 442 - Franchise Fees Total Intergovernmental 1,086,670 1,015,997 1,060,617 1,061,000 1,071,610 1,082,326 1,093,149 1,104,081 1,115,122 911 Tax Federal Grants Federal Grants Indirect 57,037 - 50,172 - - 46,945 51,000 - 119,000 100,000 - 119,000 100,000 119,000 100,000 119,000 25,000 119,000 25,000 Ready to Read Grant Regional Library Service State Cigarette Tax State Gas Tax 4,487 63,357 37,434 - 4,346 87,044 36,349 - 4,021 75,060 28,235 4,500 75,000 35,000 3,500 75,000 33,000 3,500 75,000 32,500 3,500 75,000 32,000 3,500 75,000 31,500 3,500 75,000 31,000 State Grants State Liquor Proration State Rev Shar'g Intergovernmental Total 15,584 259,463 - 437,362 66,464 279,176 - 523,550 18,215 197,203 - 369.680 57,000 270,000 - 492.500 30,000 250,000 230,000 Ron sm 30,000 250,000 230,000 aan nm 30,000 250,000 230,000 vao cm 30,000 250,000 230,000 -,�. ,,.... 30,000 250,000 230,000 ..� ...,. Exhibit A 44 General Fund Reve nues: Fines and Forfeits Alarm Fee Court Fines Library Fines Police Training Surcharg Rural Reader's Fines Towing Fee Fines and Forfeits Total Charges for goods and services Active Adult Administration Adult Program Adult Sports After School Club Arts & Culture Concession Sales Event Admission Fiesta Events Fitness Classes Lien Search Revenue Museum Admission Planning Fees Police Reimbursements Pool Admissions Pool Memberships Pool Rentals Reimbursements SD Resale of Merchandise Rural Readers' Fees Sponsorship Revenue Sponsorships Swimming Lessons T &E Planning Develop Fee Teen Program Revenue Towels /Misc Youth Program Youth Sports Charges for goods and services Total Exhibit A Actual Actual Actual Budget 6,956 7,096 Projections 7,382 007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 1,415 330 - 1,000 1,000 5,000 51000 5,000 550,165 487,459 689,258 420,000 492,500 492,500 517,125 542,981 11,S90 11,871 13,817 12,000 12,000 12,000 12,000 12,000 18,574 12,079 (4,143) 23,000 20,000 20,000 20,000 20,000 2015 -16 5,000 559,271 12,000 20,000 - (598) 6,297 6,820 6,956 7,096 7,237 7,382 7,530 3,264 5,500 3,229 1,000 1,020 1,040 1,061 1,082 1,104 869 9,205 1,056 - - - - - - 22,611 18,449 24,375 26,000 26,520 27,050 27,591 28,143 28,706 45,273 61,553 42,688 49,000 49,980 50,980 51,999 53,039 54,100 - - 23,500 500 510 520 531 541 552 17,789 15,823 14,219 15,000 15,300 15,606 15,918 16,236 16,561 200 700 3,130 - - - - - - - - 1,000 30,000 30,600 31,212 31,836 32,473 33,122 14,467 10,388 13,350 9,000 9,180 9,364 9,551 9,742 9,937 ' 60 - - - - - - 86,994 36,040 52,563 23,485 23,955 24,434 24,922 25,421 25,929 - - - 2,631 2,684 2,737 2,792 2,848 2,905 76,760 83,208 79,705 82,000 98,719 98,379 102,337 106,492 110,853 25,036 30,632 31,502 29,000 29,580 30,172 30,775 31,391 32,018 11,706 10,055 10,029 30,000 10,200 10,404 10,612 10,824 11,041 61,160 63,908 536 45,000 45,900 46,818 47,754 48,709 49,684 5,359 7,214 6,465 7,500 7,650 7,803 7,959 8,118 8,281 4,135 3,561 3,381 4,000 4,080 4,162 4,245 4,330 4,416 250 1,475 7,711 9,000 9,180 9,364 9,551 9,742 9,937 46,720 52,640 48,855 50,000 51,000 52,020 53,060 54,122 55,204 54,572 10,518 10,924 7,905 8,063 8,224 8,389 8,557 8,728 2,928 258 1,438 200 204 208 212 216 221 37,188 25,081 28,191 25,000 25,500 26,010 26,530 27,061 27,602 19,578 16,519 21,000 21,420 21,848 22,285 22,731 23,186 536,858 462,1854 86 432.18,711 454.041 47R ?n1 4RS 4sn 4a7 ,Cn cno In, - "I 45 General Fund Actual Actual Actual Budget Projections Revenues: 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Miscellaneous Adopt a Park Donations - - 250 - - - - _ Cash Long and Short 105 (940) (10,615) Deposit Difference - 5,853 109 Donations - Library 30 20,052 166 Donations- Museum 363 150 - Donations -Parks - - 2,674 - - _ Donations - Police 1,775 25,533 100 5,000 5,000 5,000 5,000 5,000 5,000 Donations -Pool - - _ Facilities Rent 4,496 10,071 24,250 4,000 4,000 4,000 4,000 4,000 4,000 Filming Permits - 1,000 _ - _ _ - - - Fraud Loss - (8,704) Insurance Recoveries 390 - - - _ _ Interest from Investment 124,924 52,969 52,575 45,000 45,000 45,000 45,000 45,000 45,000 Judgements & Settlements 400 - _ _ - _ Land o Frost Grant 6,400 6,600 - - - - _ Lost Book Revenue 2,167 1,718 3,834 2,000 2,000 2,000 2,000 2,000 2,000 NFL Grant 4,250 - - - _ _ _ OSU Credit Union Grant 296 - - - - Other Miscellaneous Inco 54,540 27,574 83,225 26,740 26,740 26,740 26,740 26,740 26,740 PAL - Teen Prog Grant - - - 22,000 22,000 22,000 22,000 22,000 22,000 Police Athletic Assoc 9,035 4,656 - - - _ - Recorder's Trust 8,847 1,413 12,628 - - - _ _ _ Reimbursements - - - 17,000 17,000 17,000 17,000 17,000 17,000 Reimbursement -- Training 3,830 - 2,400 5,000 5,000 5,000 5,000 5,000 5,000 Rent- Norcom - 21,000 22,537 23,500 23,500 23,500 23,500 23,500 23,500 Sale of Bid Documents - - 1,150 - - - _ - - Sale of Documents 2,539 2,272 2,032 2,000 2,000 2,000 00 2,0,000 2 2 000 Sale of Surplus Property 18 5,852 - - - _ _ _ Urban Renewal - 2,650 - 6,500 6,500 6,500 6,500 6,500 6,500 Weed /brush Abatement - - _ _ _ Woodburn Together Grant - - Miscellaneous Total 224,385 179,719 197,314 158,740 158,740 158,740 158,740 158,740 158,740 Other Financing Sources Interfund Loan Proceeds - - - 340,966 - - _ - - Reimbursements 7,587 9,576 12,287 78,420 77,250 79,568 81,955 64,413 86,946 Other Financing Sources Total 7,587 9,576 12,287 419,386 77,250 79,568 81,955 84,413 86,946 General Fund Total Revenues 12,061,005 12,580,205 12,582,552 12,879,794 13,260,555 12,572,750 11,667,848 10.534.633 9.263.535 Exhibit A 46 General Fund Expenditures: Council & Mayor Labor and Benefits Supplies and Services Council & Mayor Total Administration Labor and Benefits Supplies and Services Capital Outlay Administration Total City Recorder Labor and Benefits Supplies and Services Capital Outlay City Recorder Total City Attorney Labor and Benefits Supplies and Services City Attorney Total Finance Labor and Benefits Supplies and Services Finance Total Human Resources Labor and Benefits Supplies and Services Human Resources Total Court Labor and Benefits Supplies and Services Capital Outlay Court Total Nan - departmental Supplies and Services Capital Outlay Transfers Out Non - departmental Total Police Labor and Benefits Supplies and Services Capital Outlay Police Total Library Labor and Benefits Supplies and Services Exhibit A Actual Actual Actual Budget Projections 2007 -08 2008 -09 2009 -30 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2,606 2,591 2,524 2,637 2,637 2,637 2,638 2,638 2,639 21,841 37,379 38,369 39,758 40,951 42,179 43,445 44,748 46,090 24,447 39,969 40,892 42,395 43,588 44,816 46,082 47,386 48,730 329,964 225,754 212,155 143,932 152,153 160,056 167,865 176,131 184,878 61,792 78,528 59,193 35,525 36,591 37,688 38,819 39,984 41,183 1,294 393,050 304,282 271,348 179,457 188,744 197,744 206,685 216,114 226,061 43,203 12,935 3,215 63,066 18,567 1,400 83,499 22,930 1,246 34,467 18,134 36,638 18,678 38,572 19,238 40,259 19,816 42,045 20,410 43,936 21,022 59,354 83,033 107,675 52,601 55,316 57,810 60,075 62,455 64,958 125,422 121,892 128,045 115,752 122,585 128,913 134,840 141,112 147,749 156,187 167,593 78,411 94,649 234,598 262,243 151,837 179,975 27,460 33,895 179,297 213,869 90,513 136,924 7,710 - 519,632 629,832 617,855 766,756 3,716,640 4,086,631 1,007,468 1,148,889 22,624 5,835 4,746,732 5,241,355 622,819 659,123 351,213 379,097 163,903 126,998 166,199 195,253 330,101 322,251 - 10,661 36,497 47,158 152,160 154,495 40,484 44,436 6,000 192,644 204,931 113,955 282,500 123,259 454,725 237,214 737,225 4,009,285 4,525,500 1,259,926 1,326,107 33,200 5,269,211 5,884,807 621,389 753,872 380,372 402,710 135,014 201,111 336,125 11,299 37,592 48,891 163,609 45,769 209,378 290,975 476,331 767,306 4,751,662 1,365,890 6,117,552 798,953 414,791 142,149 207,144 349,293 11,885 38,720 50,604 171,522 47,142 218,664 299,704 476,331 776,035 4,973,698 1,406,867 6,380,565 832,835 427,235 148,448 155,116 162,177 213,358 219,759 226,352 361,806 374,875 388,529 12,426 12,998 13,604 39,881 41,078 42,310 52,307 54,076 55,914 178,243 185,352 192,871 48,556 50,013 51,514 226,800 235,365 244,384 308,695 317,956 327,495 476,331 476,331 476,331 785,026 794,287 803,826 5,179,939 5,398,077 5,628,816 1,449,073 1,492,545 1,537,321 6,629,012 6,890,622 7,166,138 862,261 893,317 926,099 440,052 453,254 466,851 47 General Fund Expenditures: Actual 2007 -08 Actual 2008 -09 Actual 2009 -10 Budget 2010 -11 2011 -12 2012 -13 Projections 2013 -14 2014 -15 2015 -16 Library Total Recreation 974,033 1,038,220 1,001,761 1,156,582 1,213,745 1,260,070 1,302,313 1,346,570 1,392,950 Labor and Benefits Supplies and Services Recreation Total Swimming Pool 234,675 95,162 329,836 226,477 106,690 333,167 216,944 130,571 347,515 313,279 197,243 321,978 203,160 330,103 209,255 337,908 215,533 346,070 221,999 354,611 228,659 510,522 525,139 539,356 553,440 568,069 583,269 Labor and Benefits Supplies and Services Swimming Pool Total Community Services Admin 355,293 239,017 594,310 387,511 241,490 629,001 361,657 266,792 628,449 394,801 277,381 226,915 285,702 223,968 294,274 229,485 303,102 235,260 312,195 241,306 321,561 672,182 512,617 518,241 532,587 547,454 562,867 Labor and Benefits Supplies and Services Community Services Admin Total Planning 239,572 80,239 319,811 258,286 75,796 334,082 233,549 90,968 324,516 366,506 116,995 388,887 120,505 409,253 124,120 427,713 127,844 447,252 131,679 467,934 135,629 483,501 509,392 533,373 555,556 578,931 603,563 Labor and Benefits Supplies and Services Planning Total Maintenance 382,094 43,697 425,790 437,458 41,993 479,450 342,448 45,192 387,640 311,402 54,448 330,120 56,081 347,452 57,764 363,568 59,497 380,627 61,282 398,684 63,120 365,850 386,202 405,215 423,065 441,909 461,805 Labor and Benefits Supplies and Services Capital outlay 335,180 132,009 18,894 388,034 155,868 - 384,706 162,014 431,249 171,847 458,257 177,002 482,014 182,312 501,967 187,782 523,094 193,415 545,463 199,218 Maintenance Total Total Expenses EmUm Fund Balance 486,083 9,S3S,027 9,535,027 543,902 10,420,201 10,420,201 546,719 9,846,485 9,846,485 603,096 11,418,891 V 11,418,691 635,260 11,713,637 1,546,918 664,326 12,168,081 404,669 689,749 12,603,6 86 (935,838) 716,509 13,061,409 (2,526,776) 744,681 13,542,468 (4,278,934) Exhibit A 48 Building Inspection Revenue Fund Balance Licenses and Permits Charges for goods and services Misc Other Financing Sources Revenue Total Expense Labor and Benefits Supplies and Services Capital Outlay Transfers Out Conting'y & Unapprop Expense Total Ending Fund Balance Exhibit A Actual Actual Actual Budget Projections 007 -08 2008 -09 2009 -30 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 361,653 310,540 143,482 42,596 42,596 218,341 308,577 445,379 613,937 258,071 89,764 135,357 239,616 383,386 402,555 462,938 509,232 534,694 - - 1261 - - - - - - 21,629 6,732 22,859 4,950 10,000 10,000 10,000 10,000 10,000 - - 172 933 80 000 281,457 231,367 35,491 32,187 301,672 460,095 515,982 630,895 781,515 964,611 1,158,630 179,140 210,611 208,815 230,827 241,901 253,611 265,996 35,870 160,258 88,826 91,491 94,236 97,063 99,974 89,226 324,405 143,482 86,662 zV /,w1 szz,3la 336,137 350,674 365,971 218,341 308,577 445,379 613,937 792,660 49 Transit Fund Actual Actual Actual Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Rewmu Fund Balance 140,805 150,201 60,960 135,173 61,000 204,061 140,870 81,580 (9,792) Taxes 144,388 150,954 155,869 151,000 151,000 151,000 151,000 151,000 151,000 Intergovernmental 144,599 79,214 257,565 338,080 559,000 375,000 400,000 390,000 390,000 Charges for goods and services 26,618 27,913 23,893 28,000 39,390 39,784 40,182 40,584 40,989 Misc 12,905 12,566 15,894 9,500 9,500 9,500 9,500 9,500 9,500 Transfersln 27,507 Revenue Total 496,822 420,848 514,181 661,753 819,890 779,345 741,552 672,664 581,698 Expense Labor and Benefits 243,872 262,922 280,405 382,463 346,461 361,266 374,688 388,854 403,807 Supplies and Services 93,946 88,027 124,813 149,346 261,343 269,183 277,259 285,577 294,144 Capital Outlay - - 41,898 120,000 8,025 8,025 8,025 8,025 8,025 Transfers Out 9,000 9,000 - - - _ Conting'y & Unapprop 9 Expense Total 346,818 359,949 447,116 661,753 615,829 638,474 659,972 682,455 705,976 Ending Fund Balance 150,004 60,899 67,0651 204,061 140,870 81,580 (9,792) (124,278) Exhibit A Streets Actual Actual Actual Budget Projections 2007-08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue Fund Balance 728,902 801,078 393,536 93,909 6,000 14,093 (335) (25,592) (62,635) Licenses and Permits 860 447 1,167 500 1,000 1,000 1,000 1,000 1,000 Intergovernmental 987,679 890,793 811,216 950,000 1,060,000 1,091,800 1,124,554 1,158,291 1,193,039 Misc 47,255 16,777 13,207 6,163 5,400 5,400 5,400 5,400 5,400 Transfers In 300,000 130,000 165,D00 90,000 337,942 320,000 320,000 320,000 320,000 Rerenue Total 2,064,696 11839,095 1,364,126 1,140,572 1,410,342 1,432,293 1,450,619 1,459,099 1,456,904 Expense Labor and Benefits 498,737 538,662 439,922 525,038 485,289 509,354 531,990 555,935 581,268 Supplies and Services 442,455 633,397 601,584 419,256 677,935 698,273 719,221 740,798 763,022 Capital Outlay 13,053 4,500 - - 8,025 - - _ Transfers Out 309,000 269,000 289,000 195,000 225,000 225,000 225,000 225,000 225,000 Conting'y & Unapprop 1,278 Expense Total --- 1,263,24S 1,445,559 1,330,5061 1,140,572 1,396,249 1,432,627 1,476,211 1,521,733 1,569,289 Ending Fund Salience $01,451 393,536 53,6201 14,093 (335) (25,592) (62,635) (112,485) Exhibit A 51 City Gas Tax Actual Actual Actual Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue Fund Balance 277,952 421,414 28,830 1 213,000 44,408 166,808 291,656 39,001 Taxes 137,120 118,670 108,681 115,000 120,000 122,400 124,848 127,345 129,892 Intergovernmental _ - - _ Misc 14,342 3,428 355 300 350 Transfers In - - - 57,058 - - - Revenue Total 429,414 543,512 137,866 116,300 390,408 166,508 291,656 419,001 168,593 Expense Supplies and Services - 3,756 - 4,000 36,000 - - 30,000 - Capital Outlay 8,000 510,926 9,255 101,429 310,000 - - 350,000 - Conting'y & Unapprop - 10,871 Expense Total 8,000 514,682 9,255 116,300 346,000 380,000 Ending Fund Balance - - - (10,871( 44,408 166,808 291,656 39,001 168,893 Exhibit A 52 Transportation Impact Fee Actual Actual Actual Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue Fund Balance 6,535,764 7,426,113 7,549,656 6,310,736 5,750,000 4,000,000 4,204,522 - 154,522 Charges for goods and services 617,221 153,404 206,610 200,000 150,000 150,000 150,000 200,000 200,000 Mist 289,249 175,499 34,979 35,000 15,300 15,300 15,300 15,300 15,300 Other Financing Sources - - - - 39,222 39,222 1,130,178 39,222 39,222 Transfers In 71,600 - - Revenue Total 7,442,234 7,755,016 7,791,245 45,736 6,026,122 4,204,522 5,500,000 254,522 409,044 Expense Supplies and Services 16,123 2,551 255,972 56,611 805,650 - Debt Service [2,98 34,519 - - 100,000 100,000 Capital Outlay - 202,809 606,672 50,000 1,185,753 - 5,500,000 Transfers Out - - - 56,500 - Conting y & Unapprop - - - 82,625 Charges for goods and services _ Expense Total 16,123 205,360 962,644 6,545,736 2,026,122 - 5,500 100,000 100,000 Endi" Fund 9alanoe 7,426,111 7,549,656 6,929,601 - 4,000,000 4,204,522 154,522 309,044 Extubit A 53 Water Actual Actual Actual Budget Projections Revenue 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Fund Balance 659,063 639,986 643,983 515,000 515,000 376,676 113,727 (126,207) (342,009) Charges for goods and services 1,716,455 1,799,021 1,697,371 1,691,111 2,123,954 2,123,954 2,230,152 2,341,659 2,458,742 Misc 84,474 55,658 51,709 30,500 30,500 30,500 30,500 30,500 30,500 Other Financing Sources - - - 85,442 - Transfers In 70,000 00 85,0,000 85 85,000 85,000 85,000 85,000 85,000 85,000 Revenue Total 2,529,992 2,579,665 2,478,063 2,407,OS3 2,754,454 2,616,130 2,459,379 2,330,953 2,232,233 Expense Labor and Benefits 955,388 1,017,361 885,597 1,131,631 1,279,863 1,422,856 1,483,732 1,548,133 1,616,267 Supplies and Services 549,594 535,122 542,777 673,836 721,890 743,547 765,853 788,829 812,494 Capital Outlay 41,806 37,335 9,212 40,000 40,025 - Transfers Out 346,000 346,000 346,000 431,442 336,000 336,000 336,000 336,000 336,000 Conting'y & Unapprop 130,144 Revenue Total 1,892,788 1,935,818 1,783,586 2,407,053 2,377,778 2,502,403 2,585,SBS 2,672,961 2,764,760 Ending Fund Balance 637,204 643,947 694,4771 376,676 113,727 (126,2071 (342,0091 1532.5271 Exhibit A 54 Water Well /Dist Const Actual Actual Actual Budget Projections 2007 -08 2008 -09 2009 -30 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue Fund Balance 3,727,732 4,602,187 5,792,564 4,547,846 3,149,564 1,167,910 963,082 769,314 586,715 Intergovernmental - _ - Chargesforgoodsandservices 1,606,392 1,643,012 1,580,368 1,613,261 1,095,000 1,105,950 1,117,010 1,128,180 1,139,461 Misc 170,993 94,791 27,867 25,500 10,000 5,000 5,000 5,000 5,000 Other Financing Sources - - 324,339 2,528,661 136,219 39,222 39,222 39,222 39,222 Transfers In Expense Total 5505,117 6,339,990 7,725,138 8,715,268 4,390,783 2,318,082 2,124,314 1,941,715 1,770,398 Labor and Benefits _ Supplies and Services 25,740 12,400 250,567 929,748 140,000 75,000 75,000 75,000 75,000 Debt Service 750,878 753,673 753,023 1,157,349 1,155,417 700,000 700,000 700,000 700,000 Capital Outlay 126,322 13,405 1,064,538 5,161,486 1,847,456 500,000 500,000 500,000 500,000 Transfers Out - - - 429,433 80,000 80,000 80,000 80,000 80,000 Conting'y & Unapprop - 1,037,252 Expense Total 902,940 779,478 2,068,128 8,735,268 3,222,873 1,3SS,000 1 1 355,000 1,355,000 1,355,000 E^diin8 Fond W{ance 4,602,177 5,560,512 S,657,016 1,167,910 %3,082 769,314 586,715 415,398 Exhibd A 55 Sewer Actual Actual Actual Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenw Fund Balance 398,643 403,160 530,387 346,500 346,500 206,310 307,743 626,729 845,900 Fines and Forfeits - - 300 500 250 250 250 250 250 Charges for goods and services 2,172,931 2,446,713 2,533,257 2,745,763 3,006,610 3,292,238 3,605,001 3,605,001 3,605,001 Misc 29,597 18,654 20,040 12,500 - - Other Financing Sources - - - 85,442 - _ - - Transfers In - Revenue Total 2,601,171 2 3,083,984 3,190,705 3,353,360 3,498,799 3,912,991 4,231,981 4,451,151 Expense Labor and Benefits 945,231 1,035,979 1,028,961 1,214,839 1,287,114 1,425,972 1,489,078 1,555,828 1,626,438 Supplies and Services 789,617 850,721 838,730 1,027,370 1,038,917 1,070,085 1,102,187 1,135,253 1,169,310 Capital Outlay 12,196 415 45,575 118,500 126,019 - Transfers out 451,000 451,000 590,000 700,442 695,000 695,000 695,000 695,000 695,000 Conting'y & Unapprop - - 73,000 129,554 - _ _ Charges forgoods and services Expense Total 2,198,044 2,338,115 2,576,266 3,190,705 3,147,050 3,191,056 3,286,265 3,386,081 3,490,749 Ending Fund Balance - - - 206,310 307,743 626,729 845,900 960,403 Exhibit A 56 Surfacewater Actual Actual Actual Budget Projections Revenue 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Fund Balance - - - 46,000 102,815 53,494 (7,846) (76,689) (153,716) Misc Transfers In - - 155 100 100 100 100 100 100 Revenue Total - - 235,000 235,000 235,000 240,000 245,000 250,000 255,000 Expense - 235,155 283,100 337,915 293,594 237,254 173,411 101,394 Labor and Benefits Supplies and Services - - 134,929 200,825 227,354 252,452 263,485 275,156 287,502 Capital Outlay - - 17,144 - 36,615 47,561 48,988 50,457 51,971 53,530 Conting'y & Unapprop - - - - 17,500 26,160 9,506 - - _ - _ - Expense Total _ Emk; Fund Balance 152,073 281,100 284,421 301,440 313,943 327,127 341,032 113,0821 53,494 (7,846) (76,689) (153,716) (239,649) Exhibit A 57 WWTP Construction Actual Actual Actual Budget Projections 2007-08 2008 -09 2009 -30 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 Revenue -16 Fund Balance 1,008,251 588,620 145,804 1,262,545 1,262,545 22,010,879 15,501,314 7,073,482 (978,514) Charges for goods and services 1,790,567 2,028,697 2,337,362 2,567,663 2,811,591 3,078,692 3,371,168 3,371,168 3,371,168 Misc 25,280 8,375 2,828 3,263 1,000 1,000 1,000 1000 1000 Other Financing Sources - 562,045 355,583 1,900,000 23,500,000 - Transfers In - ' Revenue Total 2,524,092 3,197,737 2,841,577 5,733,471 27,575,136 25,090,571 18,273,482 10,445,650 2,393,654 Expense Supplies and Services 426,958 729,391 890,226 551,930 1,200,000 - Debt Service 1,769,131 1,763,439 1,757,544 2,479,281 2,289,257 2,289,257 4,500,000 4,500,000 4,500,000 Capital Outlay 21,422 317,103 104,426 1,375,088 2,075,000 7,300,000 7,300,000 6,924,164 - Conting'y & Unapprop ' - - 1,327,172 - Expense Total 2,235,472 2,809,933 2,7S2,1961 5,733,471 5,564,257 9,589,257 11,800,000 11,424,164 4,500,000 EndfnB Fund Wlanu 528,620 377,204 29,321 - 2 010,279 2 ' 15,501,314 7,073,482 (978,514) 12.106.3461 Exhibit A 58 Building Maintenance Actual Actual Actual Budge[ Revenue 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 Projections 2013 -14 2014 -15 2015 -16 Fund Balance Charges for goods and services 58,814 635,001 27,124 709,000 14,588 30,000 120,000 41,220 41,220 41,220 41,220 Misc 3,840 792,083 838,762 658,945 767,694 786,245 816,469 837,234 Transfers In 6,161 5,276 250 Revenue Total 12,000 709,655 999 743,284 811,947 969,012 778,945 808,914 827,465 - Expense 857,689 978,454 Labor and Benefits Supplies and Services 301,649 338,348 351,090 363,570 394,757 414,437 432,988 452,614 473,379 Capital Outlay 375,223 5,658 390,349 - 379,476 - 484,437 342,968 353,257 353,257 363,855 363,855 Conting'y & Unapprop - - - - Expense TO E _ Endins Fund Balance 682,530 - 728,697 - 730,566 21,005 869,012 737,725 767,694 786,245 816,469 837,234 27,125 14,587 81,381 - 41,220 41,220 11,220 41,220 11,220 Exhibit A COUNCIL MEETING MINUTES JULY 11, 2011 0:00 DATE COUNCIL CHAMBERS, CITY HALL, CIT Y OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JULY 11, 2011. CONVENED The meeting convened at 7:00 p.m. with Mayor Figley presiding. ROLL CALL Mayor Figley Present Councilor Cox Present Councilor Lonergan Present Councilor McCallum Present Councilor Morris Present Councilor Pugh Present Councilor Schmidt Present Staff Present: City Administrator Derickson, City Attorney Shields, Economic & Community Development Director Hendryx, Public Works Director Brown, Finance Director Palacios, Police Captain Alexander, Building Official Krieg, City Planner Dolenc, Recorder Shearer. 0:00 ANNOUNCEMENTS A. Basset Games 0:02 COMMUNITY /GOVERNMENT REPORTS A. Woodburn School District — Superintendent David Bautista recognized outstanding 2011 graduating students. B. Woodburn Downtown Unidos — Erubio Valladares, President of Woodburn Downtown Unidos provided an update on Unidos events and activities. 0:10 PRESENTATIONS Relay for Life — City of Woodburn Sponsorship Plaque 0:11 CONSENT AGENDA A. Approve Woodburn City Council minutes of June 13, 2011, B. Approve Woodburn City Council minutes of June 27, 2011, C. Accept Woodburn Planning Commission minutes of May 26, 2011, and D. Accept Woodburn Planning Commission minutes of June 9, 2011. McCallum/Lonergan... adopt the Consent Agenda. The motion passed unanimously. Page 1 - Council Meeting Minutes, July 11, 2011 COUNCIL MEETING MINUTES JULY 11, 2011 0:11 TABLED BUSINESS COUNCIL BILL NO. 2870 — A RESOLUTION AGREEING TO THE PERMANENT CLOSURE OF THE MILL STREET RAILROAD CROSSING PURSUANT TO AN ORDER TO BE ISSUED BY THE OREGON DEPARTMENT OF TRANSPORTATION, RAIL DIVISION Council elected to leave this item on the table. 0:12 PUBLIC HEARING LEGISLATIVE AMENDMENT 2011 -01, AMENDMENTS TO SECTIONS 1,4, AND 5 OF THE WOODBURN DEVELOPMENT ORDINANCE Mayor Figley declared the hearing open at 7:12 pm for the purpose of hearing public input on Legislative Amendment 2011 -01. Economic & Community Development Drector Hendryx provided an overview of the proposed changes. Councilor Cox stated that the committee's intent was to provide a quicker, more builder /developer friendly process while applying existing standards. Council discussed when a Design Review Board would be necessary. Unless Council elects to create a Design Review Board, Planning Commission will continue to serve in that capacity. Councilor Schmidt had a question regarding the standards for measuring trees associated with significant trees and new trees to be planted pursuant to new development. Director Hendryx stated that he does not know what the historical purpose for the graduated standard is. He indicated the standard could be simplified, if that was Council's preference. Councilor Cox clarified that the policy in question is to ensure that sufficiently mature trees are planted. Councilor Cox and Director Hendryx clarified that none of the proposed changes trigger a Measure 56 notice; all revisions result in less stringent regulation than is currently in place. Councilor Pugh had a concern regarding the applicability of the standard to existing properties. Staff and Councilor Cox clarified that it applies to new development only. Councilor Schmidt responded that it also applies to "significant trees" under the ordinance and was concerned about the cost implications. Mayor Figley suggested that staff survey other jurisdictions to evaluate the existing and proposed standard. Mayor Figley invited members of the public who wished to speak in favor of the Legislative Amendment. Richard Jennings, 595 Filbert St Woodburn and focus group member, spoke regarding intent of the focus group and the planning commission. He stated that their sole goal was to make it easier for developers to understand and apply the ordinance. Durrell Crays, 167 N Settlemier spoke in favor of the Legislative Amendment. He also spoke of his concern regarding tree attrition in Woodburn. Mayor Figley invited members of the public who wished to oppose the Legislative Amendment. No one wished to speak in opposition. Mayor Figley declared the hearing closed at 8:05 pm. Page 2 - Council Meeting Minutes, July 11, 2011 61 COUNCIL MEETING MINUTES JULY 11, 2011 Cox /Schmidt ... direct staff to prepare an ordinance incorporating the provisions submitted to Council as corrected, except for the portion addressing tree standards. The motion passed unanimously. 1:05 COUNCIL BILL NO. 2873 — AN ORDINANCE ADOPTING BUILDING DIVISION FEES FOR INCLUSION IN THE MASTER FEE SCHEDULE; REPEALING ALL BUILDING FEES AND CHARGES THAT ARE INCONSISTENT WITH THIS ORDINANCE; AND SETTING AN EFFECTIVE DATE McCallum introduced Council Bill 2873. Recorder Shearer read the two readings of the bill by title only since there were no objections from the Council. Councilor Cox commented that although these are substantial increases in fees they appear to be well supported by staff analysis. Councilor Morris has concerns about impacts to individual homeowners. Councilor Pugh questioned whether analysis regarding neighboring cities fees for these services. Director Hendryx responded that an analysis was performed, but such analysis is difficult given that some cities subsidize this function with General Fund funding and the City of Woodburn does not. Building Official Krieg directed Council to the analysis provided in the Council packet. Councilor Cox pointed out that Building fund reserves have been drawn down to the point where additional resources are necessary. Councilor McCallum commented that he does not like raising fees in good times or bad times, but believes that this program should be self sustaining and provides a necessary protection service to the community. Mayor Figley pointed out that in the absence of the Building Inspection program, many routine projects would need to be cleared through Marion County, which may not be less expensive. Councilor Schmidt is supports the Building Inspection program but is opposed to the fee increases and would prefer that General Fund subsidies be used to provide the additional funding necessary. Councilor Pugh appreciates the staff analysis and points to the enterprise zone as providing incentives that would offset the potentially negative impact of the increased fees. On roll call vote for final passage, the vote was 5 -1 with Councilor Schmidt voting no. As this is an ordinance, this bill will be taken up again at the next Council meeting. 1:17 COUNCIL OF GOVERNMENTS AGREEMENT FOR WARD BOUNDARY ADJUSTMENT SERVICES Pugh/McCallum... authorize the City Administrator to execute an agreement with the Mid - Willamette Valley Council of Governments to update Woodburn's Councilor Ward Boundaries, according to the established reapportionment criteria, and to develop boundary options in an amount not to exceed $6,000. The motion passed unanimously. Page 3 - Council Meeting Minutes, July 11, 2011 62 COUNCIL MEETING MINUTES JULY 11, 2011 1:18 CANCELLATION OF AUGUST 22, 2011 COUNCIL MEETING McCallum /Cox... cancel the August 22, 2011 Council Meeting. The motion passed unanimously. 1:19 CITY ADMINISTRATOR'S REPORT City Administrator Derickson reviewed his Summer Projects list with Council which includes: • Approved Arborists /Tree Experts for tree removal. Also consider ideas such as an increased tree deposit and supply a voucher for a replacement tree from the approved list, or provide a partial refund upon completion of tree replacement. • Clarify the nuisance abatement ordinance applicability to City -owned property to reflect the varying regulations and standards applied to City property. • Public restrooms for the Downtown area • Bridge for the Greenway culvert • Increased code enforcement related to signs • Explore options for Police Department landscaping • Budget Policies • Library Coffee Shop idea • Highway 214 median landscaping • Police department will begin summer downtown patrols on Friday, July 15. 1:23 MAYOR AND COUNCIL REPORTS • Councilor Lonergan reported that a former City Councilor, Bob Post, recently passed and wanted to recognize his service. • Mayor Figley would like the air conditioning in Council chambers to be looked at to see if the noise can be eliminated. • Councilor Schmidt asked about the Mill Creek Greenway path around the pond. He also had a suggestion regarding the bridge for the culvert that may not require a permit. • Councilor Morris commended staff on the July 4 th event. • Councilor Morris also questioned whether the City has a noise ordinance and staff indicated that violations should be reported to the Police Department for code enforcement action. Page 4 - Council Meeting Minutes, July 11, 2011 63 COUNCIL MEETING MINUTES JULY 11, 2011 1:27 ADJOURNMENT McCallum/Lonergan... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:30 p.m. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Christina M. Shearer, Recorder City of Woodburn, Oregon Page 5 - Council Meeting Minutes, July 11, 2011 WOODBURN PLANNING COMMISSION WORKSHOWMEETING MINUTES June 23, 2011 CONVENED: The Planning Commission met in a public meeting session at 7:00 p.m. in the City Hall Council Chambers, with Chair Jennings presiding. ROLL CALL Chair ` Jennin s Present Vice -Chair Bandelow Present Commissioner Corning ,' Present Commissioner Grigorieff Present Commissioner Piper Present Commissioner , Ellsworth Present Staff Present Don Dolenc, Associate Planner Jon Stuart, Assistant City Attorney Vicki Musser, Recording Secretary Chair Jennings opened the workshop /meeting at 7:00pm, and Commissioner Piper led the Commissioners in the flag salute. Minutes The June 9, 2011 minutes were unanimously approved. Business from the Audience There was none. Communication There was none. Public Hearing A public hearing was held regarding Modification of Design Review Conditions: DR 2010 -03. A year ago, the Planning Commission approved a Type III Design Review for a 3,000 square foot office and multi -use building at the corner of Young Street and C Street. Now, the applicant wishes to change some aspects of the design: changing it from a two - pitched roof to a shed roof, replacing the "living roof' over the entry with a translucent roof; and finally, changing the window configuration in the western portion of the north (Young Street) facade. The WDO states that if the Planning Commission approved the original Design Review, they must also approve any modifications to the originally approved conditions. Planning Commission Meeting — June 23, 2011 Page 1 of 4 65 Associate Planner Don Dolenc discussed the modification of conditions that the applicant, Larry Kleinman of the Willamette Law Project, wishes to make. The window configuration is proposed to decrease from 12% of the exterior wall to 8 %. Although the WDO, Section 3.107.06B.2.b provides that "The appearance of exterior surfaces should be enhanced by incorporating the following: 1) At least 30% of wall surface abutting a street should be glass... ", Dolenc noted that these are guidelines, not hard and fast rules. The applicant has indicated that additional glazing can be provided to the small window. Guidelines versus mandatory requirements were pointed out again with the other proposed changes, neither of which would come up against a mandatory requirement. The Planning staff recommended approval of the modification. Public Testimony Larry Kleinman, 790 Landau Drive, Director of the Willamette Valley Law Project, spoke to the Commission on behalf of the proposed modifications. The applicant has always meant to achieve "passive house standards ", feeling it would be better for the building and better for the City of Woodburn in terms of innovation and design. Passive house standards produce low -to -no energy usage in buildings. Mr. Kleinman said that passive house standards would reduce heating and cooling energy use in the building by 90 %. He noted that by changing the window's configuration from the original design, they would achieve a 15% energy savings from the window alone. He pointed out that the Planning Commission should approve the modification of conditions due to the increased energy savings that the modifications would produce. Increased architectural interest in this first commercial office building in the country to use passive house standards, would bring more people to Woodburn. Mr. Kleinman showed the Commission an article about passive house standards from the New York Times, and stated that the editor is interested in this project, and is likely to promote it in a national article. The two - pitched "butterfly" roof is proposed to be changed to a shed roof. Mr. Kleinman said that the change would save $30,000 in direct and indirect constructions costs, and up to $50,000 in future repair cost exposure. Commissioner Bandelow asked whether the Willamette Valley Law Project had taken into account the higher roof costs in the original proposal. Mr. Kleinman replied that the full import of the passive house standards were not clear to them at the time. He went on to tell the Commission that the life expectancy of this building will be 100 years, and that it has been decided to plant the "living roof' with sedum. Ultimately, it is hoped that solar panels can be installed, which will cut energy costs to the point where electricity can be resold to PGE, thus become even more self - sustaining. Planning Commission Meeting — June 23, 2011 Page 2 of 4 .. Planning Commission Discussion Commissioner Ellsworth preferred the butterfly roof design to the modified version. However, after receiving confirmation that the butterfly roof would not meet passive house standards, she approved the roof modification. She agreed with the sustainability principle, and was impressed by the overall design. Commissioner Corning also liked the butterfly roof design, but agreed with the proposed modifications , and felt it was an important project that would draw increased attention to Woodburn. Commissioner Bandelow loved the angled design of the building. She received confirmation that after further calculations, the window glazing at at the original proposed 12% of wall space would not meet passive house standards. She voiced concerns about the need to stay within the standards set by the WDO, in regards to the smaller window, and especially, in considering the roof design modification. The goal should be to stay true to the WDO design standards. Commissioner Piper felt that the WDO was not written for cutting -edge designs such as the proposed building. When the standards were set, this design had not been created. The structure of the roof calls for a very distinctive top to the building. Commissioner Piper would like to see the best opportunity given for this building to exist. This advanced technology is expensive; if $30,000 and possibly more in future costs could be saved, the Planning Commission should be sensitive to that. Commissioner Grigorieff saw the building design as new technology that would be used extensively in the future, and also felt that the modified proposal's savings would be extensive. She was strongly in favor of approving the applicant's request. Chair Jennings agreed with Commissioner Bandelow that WDO design standards should be upheld, but also agreed with Commissioner Piper that the WDO never foresaw the technology and design that is being proposed for this building. Commissioner Voted Chair Jennings Yes Vice -Chair Bandelow No Commissioner Grigorieff Yes Commissioner Piper Yes Commissioner Corning Yes Commissioner Ellsworth Yes The Commission took a vote as to whether to approve Modification of Design Review Conditions 2010 -03, and to sign the Final Order. It was approved, with a vote of 5 for, and 1 against. Planning Commission Meeting — June 23, 2011 Page 3 of 4 67 General Discussion The Commissioners asked Mr. Kleinman a few questions about the proposed building. He told them that the insulation would be composed of cellulose, and that there would be a great deal of insulation, all of it in the ceiling. The walls are in fact, double walls — one wall with another around it — which are joined together by the windows and create a thermal wall envelope. Run -off water will be absorbed the living plant roof and the property itself, and will not impact the City's waste -water system. Adjournment Commissioner Bandelow made a motion to adjourn the meeting. Commissioner Grigorieff seconded the motion, and the meeting was adjourned at 7:45 pm. M APPROVED Richard Jennings, CHAR Date ATTEST` games N.P. He drvx r �, fi Date Economic & Development Services Director City of Woodburn, Oregon Planning Commission Meeting — June 23, 2011 Page 4 of 4 7/19/2011 Woodburn Police Department MONTHLY ARRESTS BY OFFENSES JANUARY THRU DECEMBER 2011 CHARGE DESCRIPTION Total Jan Feb Mar Apr May un 0 0 0 0 0 0 0 AGGRAVATED ASSAULT 32 13 0 10 2 3 4 ANIMAL CRUELTY 1 0 0 0 0 1 0 ANIMAL ORDINANCES 6 1 0 0 0 4 1 ASSAULT SIMPLE 62 19 8 11 6 10 8 BURGLARY - BUSINESS 1 0 0 0 0 0 1 BURGLARY - OTHER STRUCTURE 3 0 0 0 0 3 0 BURGLARY - RESIDENCE 16 4 1 1 6 3 1 CHILD NEGLECT 4 1 1 1 1 0 0 CITY ORDINANCE 1 0 1 0 0 0 0 CRIME DAMAGE -NO VANDALISM OR ARSON 5 0 1 1 1 1 1 CURFEW 4 0 0 4 0 0 0 CUSTODY -DETOX 4 1 0 1 1 0 1 CUSTODY - MENTAL 31 3 4 8 3 7 6 CUSTODY - PROTECITVE 1 0 0 1 0 0 0 DISORDERLY CONDUCT 33 3 7 5 10 7 1 DRIVING UNDER INFLUENCE 57 5 3 12 13 15 9 DRUG LAW VIOLATIONS 92 3 8 41 19 12 9 DWS /REVOKED - FELONY 1 1 0 0 0 0 0 DWS /REVOKED- MISDEMEANOR 13 2 2 2 2 2 3 ELUDE 2 0 0 0 1 0 1 EMBEZZLEMENT 3 1 0 0 0 1 1 ESCAPE FROM YOUR CUSTODY 1 0 0 0 0 1 0 FAIL TO DISPLAY OPERATORS LICENSE 18 4 2 2 2 5 3 FAILURE TO REGISTER AS SEX OFFENDER 1 0 1 0 0 0 0 FORGERY /COUNTERFEITING 18 3 0 0 9 2 4 FRAUD - BY DECEPTION /FALSE PRETENSES 2 0 1 0 0 1 0 FRAUD - CREDIT CARD /AUTOMATIC TELLER MACHINE 4 0 1 1 0 0 2 FUGITIVE ARREST FOR ANOTHER AGENCY 123 17 18 16 29 28 15 FURNISHING 12 2 0 4 0 0 6 GARBAGE LITTERING 1 0 0 0 0 1 0 HIT AND RUN FELONY 1 0 0 0 0 0 1 HIT AND RUN - MISDEMEANOR 6 2 0 1 1 1 1 IDENTITY THEFT 8 0 1 0 4 1 2 INTIMIDATION /OTHER CRIMINAL THREAT 27 11 1 6 5 2 2 KIDNAP - FOR ADDITIONAL CRIMINAL PURPOSE 4 2 0 0 0 0 2 MINOR IN POSSESSION 36 11 3 3 6 9 4 MOTOR VEHICLE THEFT 3 0 0 1 1 0 1 OTHER 49 6 6 7 10 11 9 RECKLESS DRIVING 4 0 0 1 1 1 1 RESTRAINING ORDER VIOLATION 4 0 1 1 0 1 1 ROBBERY - BUSINESS 1 0 0 0 1 0 0 ROBBERY -OTHER 1 1 0 0 0 0 0 RUNAWAY 13 1 0 4 0 8 0 EX CRIME - CONTRIBUTE TO SEX DELINQUENCY 2 2 0 0 0 0 0 EX CRIME - FORCIBLE SODOMY 1 1 0 0 0 0 0 EX CRIME - MOLEST (PHYSICAL) 10 8 0 0 1 0 1 EX CRIME - NON FORCE SODOMY 1 0 0 0 1 0 0 EX CRIME - NON -FORCE RAPE 1 0 0 0 1 0 0 EX CRIME - OTHER 1 1 0 0 0 0 0 STOLEN PROPERTY - RECEIVING,BUYING,POSSESSING 2 0 1 0 0 1 0 HEFT - BICYCLE 1 0 0 0 0 1 0 HEFT - BUILDING 8 1 1 0 6 0 0 HEFT -FROM MOTOR VEHICLE 2 0 0 0 0 1 1 HEFT -OTHER 16 4 2 4 3 0 3 HEFT - PICKPOCKET 2 0 0 0 1 1 0 Page 1 of 2 69 7/19/2011 Woodburn Police Department MONTHLY ARRESTS BY OFFENSES JANUARY THRU DECEMBER 2011 2010 Total 789 142 127 127 120 138 135 2009 Total 1,034 136 199 169 170 168 192 1200 1000 800 N ; w 600 Q 400 200 0 Arrests / Year Page 2 of 2 70 2009 2010 2011 Year Total an Feb Ma Apr May Jun HEFT - SHOPLIFT 66 8 6 13 7 12 20 TRAFFIC VIOLATIONS 87 1 4 14 19 26 23 TRESPASS 24 5 0 6 4 8 1 UNAUTHORIZED ENTRY INTO MOTOR VEHICLE 2 0 0 0 0 1 1 VANDALISM 23 2 1 0 9 7 4 ARRANT ARREST FOR OUR AGENCY 20 5 5 1 2 2 5 WEAPON - CARRY CONCEALED 7 1 3 1 2 0 0 WEAPON - EX FELON IN POSSESSION 2 0 0 0 0 2 0 W EAPON - OTHER 1 0 0 0 0 1 0 W EAPON - POSSESS ILLEGAL 11 0 1 1 2 4 3 Jan Feb Mar Apr May Jun 2011 Total 999 156 95 185 192 208 163 2010 Total 789 142 127 127 120 138 135 2009 Total 1,034 136 199 169 170 168 192 1200 1000 800 N ; w 600 Q 400 200 0 Arrests / Year Page 2 of 2 70 2009 2010 2011 Year 7/19/2011 Woodburn Police Department MONTHLY CRIMINAL OFFENSES JANUARY THRU DECEMBER 2011 CHARGE DESCRIPTION Total Jan Feb Mar Apr May Jun AGGRAVATED ASSAULT 26 6 3 4 3 4 6 ANIMAL CRUELTY 1 0 0 0 0 1 0 ANIMAL ORDINANCES 14 2 2 0 1 3 6 ARSON 5 1 1 2 0 0 1 ASSAULT SIMPLE 59 7 8 12 8 12 12 ATTEMPTED MURDER 1 1 0 0 0 0 0 BURGLARY - BUSINESS 9 2 2 0 1 2 2 BURGLARY - OTHER STRUCTURE 6 0 1 0 1 2 2 BURGLARY - RESIDENCE 37 7 6 6 8 6 4 CHILD NEGLECT 3 1 1 0 0 0 1 CITY ORDINANCE 4 0 1 1 0 0 2 COMPUTER CRIME 1 0 0 0 1 0 0 CRIME DAMAGE -NO VANDALISM OR ARSON 48 9 11 4 6 9 9 CRIMINAL MISTREATMENT 4 0 0 2 0 2 0 CURFEW 2 0 0 2 0 0 0 CUSTODY -DETOX 4 1 0 1 1 0 1 CUSTODY - MENTAL 30 3 4 8 3 7 5 DISORDERLY CONDUCT 24 1 4 6 7 5 1 DRINKING IN PUBLIC 1 0 0 0 1 0 0 DRIVING UNDER INFLUENCE 55 5 3 12 12 13 10 DRUG LAW VIOLATIONS 54 4 9 8 13 13 7 DWS /REVOKED - FELONY 1 1 0 0 0 0 0 DWS /REVOKED - MISDEMEANOR 14 2 2 2 2 3 3 ELUDE 3 0 0 0 1 1 1 EMBEZZLEMENT 1 1 0 0 0 0 0 ESCAPE FROM YOUR CUSTODY 1 0 0 0 0 1 0 FAIL TO DISPLAY OPERATORS LICENSE 18 4 2 2 2 5 3 FAILURE TO REGISTER AS SEX OFFENDER 1 0 1 0 0 0 0 FORGERY /COUNTERFEITING 19 4 2 0 6 3 4 FRAUD - ACCOUNT CLOSED CHECK 1 0 0 0 1 0 0 FRAUD - BY DECEPTION /FALSE PRETENSES 5 0 2 0 1 2 0 FRAUD - CREDIT CARD /AUTOMATIC TELLER MACHINE 11 4 0 2 2 3 0 FRAUD - OF SERVICES /FALSE PRETENSES 2 1 0 0 1 0 0 FUGITIVE ARREST FOR ANOTHER AGENCY 116 14 16 15 27 28 16 FURNISHING 10 2 0 2 0 0 6 GARBAGE LITTERING 1 0 0 0 0 1 0 HIT AND RUN FELONY 2 0 0 0 0 1 1 HIT AND RUN - MISDEMEANOR 53 11 4 5 7 9 17 IDENTITY THEFT 23 2 1 7 7 4 2 INTIMIDATION /OTHER CRIMINAL THREAT 15 1 2 3 2 5 2 KIDNAP - FOR ADDITIONAL CRIMINAL PURPOSE 6 2 0 0 0 0 4 MINOR IN POSSESSION 22 4 3 3 4 5 3 MISCELLANEOUS 38 8 5 5 7 6 7 MOTOR VEHICLE THEFT 23 4 4 5 5 2 3 OTHER 43 6 8 6 5 10 8 PROPERTY - FOUND LOST MISLAID 14 1 2 1 1 6 3 PROPERTY RECOVER FOR OTHER AGENCY 1 0 1 0 0 0 0 RECKLESS DRIVING 4 0 0 1 1 1 1 RESTRAINING ORDER VIOLATION 3 1 0 0 0 1 1 ROBBERY - OTHER 7 1 4 1 1 0 0 ROBBERY - RESIDENCE 1 1 0 0 0 0 0 RUNAWAY 34 2 6 9 2 11 4 SEX CRIME - FORCIBLE SODOMY 3 1 1 0 0 0 1 SEX CRIME - MOLEST (PHYSICAL) 15 4 1 1 0 2 7 SEX CRIME - NON -FORCE RAPE 3 0 0 1 1 0 1 SEX CRIME - OBSCENE PHONE CALL 3 0 1 1 0 1 0 SEX CRIME - PORNOGRAPHY /OBSCENE MATERIAL 1 0 0 0 1 0 0 Page 1 of 2 71 7/19/2011 Woodburn Police Department MONTHLY CRIMINAL OFFENSES JANUARY THRU DECEMBER 2011 2010 Total 1,580 321 223 282 219 283 252 2009 Total 1,716 276 297 289 309 283 262 1800 1600 1400 n 1200 w 1n 1000 z w LL 800 LL 0 600 400 200 Offenses / Year Page 2 of 2 72 2009 2010 2011 YEAR Total an Feb Mar Apr May Jun STOLEN PROPERTY - RECEIVING,BUYING,POSSESSING 1 0 0 0 0 1 0 HEFT - BICYCLE 6 0 1 1 1 1 2 HEFT - BUILDING 15 2 3 1 4 3 2 HEFT - COIN OP MACHINE 1 0 0 0 0 1 0 HEFT - FROM MOTOR VEHICLE 40 11 7 4 7 5 6 HEFT - MOTOR VEHICLE PARTS /ACCESSORIES 8 3 3 1 1 0 0 HEFT - OTHER 57 5 10 11 9 13 9 HEFT - PICKPOCKET 1 0 0 0 1 0 0 HEFT - PURSE SNATCH 1 0 0 1 0 0 0 HEFT - SHOPLIFT 65 5 7 10 12 14 17 TRAFFIC VIOLATIONS 87 1 5 12 21 21 27 TRESPASS 30 3 2 8 6 8 3 VANDALISM 164 33 14 28 29 27 33 VEHICLE RECOVERD FOR OTHER AGENCY 4 1 0 0 0 1 2 ARRANT ARREST FOR OUR AGENCY 19 5 5 1 1 2 5 WEAPON - CARRY CONCEALED 6 1 2 1 2 0 0 WEAPON - EX FELON IN POSSESSION 2 0 0 0 0 2 0 WEAPON - OTHER 1 0 0 0 0 1 0 WEAPON - POSSESS ILLEGAL 12 1 1 2 2 4 2 WILLFUL MURDER 1 o=0 0 0 1 0 Total Jan Feb Mar Apr May Jun 2011 Total 1,427 203 184 221 249 295 275 2010 Total 1,580 321 223 282 219 283 252 2009 Total 1,716 276 297 289 309 283 262 1800 1600 1400 n 1200 w 1n 1000 z w LL 800 LL 0 600 400 200 Offenses / Year Page 2 of 2 72 2009 2010 2011 YEAR I oOBuR July 25, 2011 TO: Honorable Mayor and City Council through City Administrator FROM: Dan Brown, Public Works Director SUBJECT: Resolution to Close the Mill Street Grade Crossing RECOMMENDATION Remove Resolution 1999 (closure of Mill Street Crossing) from the table and consider adoption of the resolution. BACKGROUND The staff report and resolution for subject action was prepared to be presented to the Council on June 27, 2011. Council action on the proposed resolution was tabled because the City had not received a copy of the executed lease agreement between Union Pacific Railroad and Wilbur - Ellis. The executed lease agreement between Union Pacific Railroad and Wilbur -Ellis has now been executed. FINANCIAL IMPACT The financial impact to the City for closing the Mill Street Crossing is the same as reported in the initial staff report of June 27, 2011. The City has expended $17,000 to date of which Wilbur -Ellis has agreed to reimburse the City $6,211. Street improvements to remove access to the Mill Street Crossing are currently estimated at $18,000 and will be paid taken from the Transportation System Development Fund 376. ATTACHMENTS: A. June 27, 2011 Staff Report B. Lease of Property C. Resolution 1999 Agenda Item Review: City Administrator _x City Attorney _x Finance 73 I oOBuR June 27, 2011 TO: Honorable Mayor and City Council through City Administrator FROM: Dan Brown, Public Works Director SUBJECT: Approval of Permanent Closure of the Mill Street Railroad Grade Crossing RECOMMENDATION That Council, in its capacity as the City of Woodburn Road Authority, approves by resolution the permanent closure of the Mill Street railroad grade crossing. BACKGROUND On September 7, 2010, Union Pacific Railroad submitted a Railroad- Highway Public Crossing Safety Application for the closure of crossing 735.45 (Mill Street) in the City of Woodburn under ORS 824.206 to the Oregon Department of Transportation Rail Division (ODOT Rail). Closing of the Mill Street crossing was first identified as a desire of the operating railroad, then Southern Pacific, in 1971. The proximity of the Mill Street crossing to the Hardcastle Avenue crossing does not meet current design standards. Prior to the recently completed North Front Street improvements, there were significant safety deficiencies associated with the Mill Street crossing due to elevation differences between the road surface of Front Street and the railroad grade. Union Pacific had requested that the City abandoned the Mill Street crossing during design of the North Front Street improvements. Strong resistance to the closure was received from Woodburn Fertilizer because of the access it provided to their plant. The City rejected Union Pacific's request to close the Mill Street crossing because it would restrict access to Woodburn Fertilizer and committed to addressing the Mill Street crossing closure when the Hardcastle Avenue crossing was improved. Union Pacific agreed and the crossing order for the North Front Street improvements at Mill Street was issued by ODOT Rail. Upon completion of the North Front Street improvements and the Mill Street crossing, truck traffic using the Mill Street crossing significantly increased. The crossing signals at Mill Street were struck multiple times by trucks entering Woodburn Fertilizer. Union Pacific complained that the City's street improvements had resulted in damage to their signals and was creating a Agenda Item Review: City Administrator _x City Attorney _x Finance _x_ ATTACHMENT "A" 74 Honorable Mayor and City Council June 27, 2011 Page 2 public safety problem. This brought the Mill Street crossing under closer scrutiny by Union Pacific safety personnel and they determined that the Mill Street crossing should be closed. Union Pacific safety personnel also identified safety concerns associated with truck loading and unloading operations on the west side of the Woodburn Fertilizer plant. Upon notification of the Railroad- Highway Public Crossing Safety Application by Union Pacific from ODOT Rail, the City expressed objection to the application and intent to contest the application. The City's concern was that closure of Mill Street crossing would adversely impact operations of the Woodburn Fertilizer plant and possibly result in the plant closing as expressed by the Plant Manager. The City has acknowledged that the Mill Street crossing does not meet spacing standards and does not function as a necessary link in the City's transportation system. However, the Mill Street crossing functioned as means of access for truck operations at the Woodburn Fertilizer plant. The City appealed to ODOT Rail to allow it to conduct a series of meetings between Woodburn Fertilizer (Wilbur -Ellis is the parent company) and Union Pacific Railroad to see if the concerns of both parties could be mitigated. Several meetings were held and the concerns of both Union Pacific Railroad and Woodburn Fertilizer were brought forward. The positions of each party were firmly established. Union Pacific Railroad felt strongly that the Mill Street crossing was a public safety hazard and liability to their company. Woodburn Fertilizer felt they could not sustain operations with the Mill Street crossing closed. The City conducted a traffic movement analysis of the Woodburn Fertilizer plant to demonstrate what operational changes would be needed to sustain operations at Woodburn Fertilizer with the closing of the Mill Street crossing. During this period, Union Pacific discovered that Woodburn Fertilizer did not have a lease agreement to utilize Union Pacific property for the truck loading and unloading operations being conducted on the west side of the plant adjacent to the railroad tracks. This property utilization presented a more severe impact to continued operations of the Woodburn Fertilizer plant than the closing of the Mill Street crossing. DISCUSSION Most recently, on June 16, 2011, the City met with the Union Pacific Railroad and Wilbur -Ellis regarding the closure of the crossing. At this meeting, Wilbur -Ellis and Union Pacific agreed to enter into a lease agreement for the use of railroad property on the west side of the Woodburn Fertilizer plant. This lease agreement is contingent upon the City's agreement with the Railroad- Highway Public Crossing Safety Application and compliance with the ODOT Rail grade crossing ATTACHMENT "A" 75 Honorable Mayor and City Council June 27, 2011 Page 3 order to be issued closing the Mill Street crossing. Staff recommends that Council approve the closing of the Mill Street crossing by resolution based upon the following rationale: • That the City agrees with Union Pacific Railroad and ODOT Rail that the Mill Street crossing does not conform with grade crossing spacing standards and presents a potential public safety risk. • That the Mill Street crossing does not provide a necessary link or connectivity needed by the City's surface transportation system. • That by Wilbur -Ellis entering into a lease agreement with Union Pacific Railroad, they have withdrawn their objection to the closure of the Mill Street crossing and that Wilbur -Ellis does not need the Mill Street crossing for access in order to maintain current operations. • That the City's objection to the closure of the Mill Street crossing is no longer necessary to assist a local business and preserve jobs within the community. FINANCIAL IMPACT The City has expended $17,000 to date of which Wilbur -Ellis has agreed to reimburse the City $6,211. Street improvements to remove access to the Mill Street crossing are currently estimated at $18,000 and will be paid taken from the Transportation System Development Fund 376. ATTACHMENT "A" 76 Industrial Lease (Year To Year) 09.01 -06 (Unimproved Property) Form Approved, Law LEASE OF PROPERTY Folder No. 02663 -72 Audit No. (INDUSTRIAL LEASE - UNIMPROVED - YEAR TO YEAR) THIS LEASE ("Lease") is entered into on I V P j , 20 f �, between UNION PACIFIC RAILROAD COMPANY ( "Lessor ") and WI UR -ELLIS COMPANY, a California corporation, whose address is 345 California St 27th Floor, San Francisco, California 94104 ( "Lessee "). IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS: Article 1. PREMISES; USE. Lessor leases to Lessee and Lessee leases from Lessor the premises ( "Premises ") at Woodburn, Oregon, shown on the print dated May 27, 2011, marked Exhibit A, hereto attached and made a part hereof, subject to the provisions of this Lease and of Exhibit B attached hereto and made a part liereof The Premises may be used for loading and unloading of fertilizer and related commodities in connection with adjacent warehouse, including lessee - owned and maintained fencing, and purposes incidental thereto, only, and for no other purpose. Article 2. TERM. The term of this Lease shall commence March 16, 2011, and, unless sooner terminated as provided in this Lease, shall extend for one year and thereafter sliaLl automatically be extended from year to year. Article 3. FIXER RENT. A. Lessee shall pay to Lessor, in advance, fixed rent of Seven Thousand Three Hundred Fifty Dollars (57,200.00) annually. The rent shall be automatically increased by Three percent (3 %) annually, cumulative and compounded. B. Not more than once every three (3) years, Lessor may redetermine the fixed rent. If Lessor redetermines the rent, Lessor shall notify Lessee of such change. Article 4. INSURANCE. A. Before commencement of the term of this Lease, Lessee shall provide to Lessor a certificate issued by its insurance carrier evidencing the insurance coverage required under Exhibit C ]hereto attached and made a part hereof, B. Not more frequently than once every two years, Lessor may reasonably modify the required insurance coverage to reflect then - current risk management practices in the railroad industry and underwriting practices in the insurance industry. ATTACHMENT "B" 77 C. All insurance correspondence, certificates and endorsements sliall be directed to: Real Estate Department, 1400 Douglas Street STOP 1690, Omaha, Nebraska 68179 -1690, Folder No. 02663- 72. Article 5. SPECIAL PROVISION — FENCE/BARRICADE Lessee, at Lessee's sole cost and expense, shall construct and maintain, at all times during the tenu of this Lease, a fencelbarricade of a design satisfactory to Lessor, in the location shown on the attached Exhibit A. The fence must be 6' high vandal resistant fence. Upon notice to Lessee, repairs to the fence must be made within 72 hours. IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first herein written. Lessor: UNION PACIFIC RAILROAD COMPANY 0 Lessee: WILBUR -ELLIS COMPANY By: 'General Director - meal E that Title: NOTE: ATTACHMENT "B" 78 Indusiriat Lease (Year To War) 09.01.06 (Uninmprovcd Property) Form Approved, Law EXHIBIT B TO INDUSTRIAL LEASE (UNIMPROVED YEAR TO YEAR) Section 1. IMPROVEMENTS. No improvements placed upon the Premises by Lessee shall become a part of the realty, Section 2. RESERVATIONS TITLE AND PRIOR RIGHTS. A. Lessor reserves to itself, its agents and contractors, the right to enter the Premises at such times as will not unreasonably interfere with Lessee's use of the Premises. B. Lessor reserves (i) the exclusive right to permit third party placement of advertising signs on the Premises, and (ii) the right to construct, maintain and operate new and existing facilities (including, without limitation, trackage, fences, communication facilities, roadways and utilities) upon, over, across or under the Premises, and to grant to others such rights, provided that Lessee's use of the Premises is not interfered with unreasonably. C. Lessee acknowledges that Lessor makes no representations or warranties, express or implied, concerning the title to the Premises, and that the rights granted to Lessee under this Lease do not extend beyond such right, title or interest as Lessor may have in and to the Premises. Without limitation of the foregoing, this Lease is made subject to all outstanding rights, whether or not of record. Lessor reserves the right to renew any such outstanding rights granted by Lessor or Lessors predecessors. D. Without limitation of Subparagraphs B. and C. above, Lessee shall not interfere in any manner with the use or operation of any signboards now or hereafter placed on the Premises or with any property uses in connection with such signboards (such as, by way of example and not in limitation, roadways providing access to such signboards). In no event may Lessee construct on the Premises any improvements that interfere in any manner with the visibility or operation of any signboards now or hereafter on the Premises or on property in proximity to the Premises. Section 3. PAYMENT OF RENT. Rent (which includes the fixed advance rent and all other amounts to be paid by Lessee under this Lease) sliall be paid in lawful money of the United States of America, at such place as sliall be designated by the Lessor, and without offset or deduction. Section 4. TAXES AND ASSESSMENTS. A. Lessee shall pay, prior to delinquency, all taxes levied during the life of this Lease on all personal property and improvements on the Premises not belonging to Lessor. If such taxes are paid by Lessor, either separately or as a part of the levy on Lessor's real property, Lessee shall reimburse Lessor in full within thirty (30) days after rendition of Lessor's bill. B. if the Premises are specially assessed for public improvements, the annual rent will be automatically increased by 12% of the full assessment amount. ATTACHMENT "B" 79 Section S. WATER RIGHTS. This Lease does not include any right to the use of water under any water right of Lessor, or to establish any water rights except in the name of Lessor. Section 6. CARE AND USE OF PREMISES. A. Lessee shall use reasonable care and caution against damage or destn►ction to the Premises. Lessee shall not use or pennit titre use of the Premises for any unlawfi ►l purpose, maintain any nuisance, permit any waste, or use the Premises in any way that creates a hazard to persons or property. Lessee shall beep the sidewalks and public ways on the Premises, and the walkways appurtenant to any railroad spur track(s) on or serving the Premises, free and clear from any substance which might create a hazard. B. Lessee shall not permit any sign on the Premises, except signs relating to Lessee's business. C. If any improvement on the Premises other than the Lessor Improvements is damaged or destroyed by fire or other casualty, Lessee shall, within thirty (30) days after such casualty, remove all debris resulting therefrom. If Lessee fails to do so, Lessor may remove such debris, and Lessee agrees to reimburse Lessor for all expenses incurred within thirty (30) days after rendition of Lessor's bill. D. Lessee shall comply with all governmental laws, ordinances, riles, regulations and orders relating to Lessee's use of the Premises and this Lease, including, without limitation, any requirements for subdividing or platting the Premises. Section 7. HAZARDOUS MATERIALS. SUBSTANCES AND WASTES. A. Without the prior written consent of Lessor, Lessee shall not use or permit the use of the Premises for the generation, use, treatment, manufacture, production, storage or recycling of any Hazardous Substances, except that Lessee may use, if lawful, small quantities of common chemicals such as adhesives, lubricants and cleaning fluids in order to conduct business at the Premises. The consent of Lessor may be withheld by Lessor for any reason whatsoever, and may be subject to conditions in addition to those set forth below. It shall be the sole responsibility of Lessee to determine whether or not a contemplated use of the Premises is a Hazardous Substance use. B. In no event shall Lessee (i) release, discharge or dispose of any Hazardous Substances, (ii) bring any hazardous wastes as defined in RCRA onto the Premises, (iii) install or use on the Premises any underground storage tanks, or (iv) store any Hazardous Substances within one hundred feet (100') of the center line of any main track. C. If Lessee uses or permits the use of the Premises for a Hazardous Substance use, with or without Lessor's consent, Lessee shall furnish to Lessor copies of all permits, identification numbers and notices issued by governmental agencies in connection with such Hazardous Substance use, together with such other information on the Hazardous Substance use as may be requested by Lessor. If requested by Lessor, Lessee shall cause to be performed an environmental assessment of the Premises upon termination of the Lease and shall furnish Lessor a copy of such report, at Lessee's sole cost and expense. D. Without limitation of the provisions of Section 12 of this Exhibit B, Lessee shall be responsible for all damages, losses, costs, expenses, claims, fines and penalties related in any manner to ATTACHMENT "B" 80 ° any Hazardous Substance use of the Premises (or any property in proximity to the Premises) during the term of this Lease or, if longer, during Lessee's occupancy of the Premises, regardless of Lessor's consent to such use or any negligence, misconduct or strict liability of any Indemnified Party (as defined in Section 12), and including, without limitation, (i) any diminution hi the value of the Premises and/or any adjacent property of any of the Indemnified Parties, and (ii) the cost and expense of clean -up, restoration, containment, remediation, decontamination, removal, investigation, monitoring, closure or post- closure. Notwithstanding the foregoing, Lessee shall not be responsible for Hazardous Substances (i) existing on, in or under the Premises prior to the earlier to occur of the commencement of the term of the Lease or Lessee's taking occupancy of the Premises, or (ii) migrating from adjacent property not controlled by Lessee, or (iii) placed on, in or under the Premises by any of the Indemnified Parties; except where the Hazardous Substance is discovered by, or the contamination is exacerbated by, any excavation or investigation undertaken by or at the behest of Lessee. Lessee shall have the burden of proving by a preponderance of the evidence that any of the foregoing exceptions to Lessee's responsibility for Hazardous Substances applies. E. In addition to the other rights and remedies of Lessor under this Lease or as may be provided by law, if Lessor reasonably determines that the Premises may have been used during the term of this Lease or any prior lease with Lessee for all or any portion of the Premises, or are being used for any Hazardous Substance use, with or without Lessor's consent thereto, and that a release or other contamination may have occurred, Lessor may, at its election and at any time during the life of this Lease or thereafter (i) cause the Premises and/or any adjacent premises of Lessor to be tested, investigated, or monitored for the presence of any Hazardous Substance, (ii) cause any Hazardous Substance to be removed from the Premises and any adjacent lands of Lessor, (iii) cause to be performed any restoration of the Premises and any adjacent lands of Lessor, and (iv) cause to be performed any remediation of, or response to, the environmental condition of the Premises and the adjacent lands of Lessor, as Lessor reasonably may deem necessary or desirable, and the cost and expense thereof shall be reimbursed by Lessee to Lessor within thirty (30) days after rendition of Lessor's bill. In addition, Lessor may, at its election, require Lessee, at Lessee's sole cost and expense, to perform such work, in which event, Lessee shall promptly coYnmenee to perform and thereafter diligently prosecute to completion such work, using one or more contractors and a supervising consulting engineer approved in advance by Lessor. F. For purposes of this Section 7, the term "Hazardous Substance" shall mean (i) those substances included within the definitions of "hazardous substance ", "pollutant ", "contaminant ", or "hazardous waste ", in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601, et seg., as amended or in RCRA, the regulations promulgated pursuant to either such Act, or state laws and regulations similar to or promulgated pursuant to either such Act, (ii) any material, waste or substance which is (A) petroleum, (B) asbestos, (C) flanunable or explosive, or (D) radioactive; and (iii) such other substances, materials and wastes which are or become regulated or classified as hazardous or toxic under any existing or future federal, state or local law. Section 8. UTILITIES. A. Lessee will arrange and pay for all utilities and services supplied to the Premises or to Lessee. B. All utilities and services will be separately metered to Lessee. If not separately metered, Lessee shall pay its proportionate share as reasonably detennined by Lessor. ATTACHMENT "B" 81 Section 9. LIENS. Lessee shall not allow any liens to allacli to the Premises for any services, labor or materials furnished to the Premises or otherwise arising from Lessee's use of the Premises. Lessor shall have the right to discharge any such liens at Lessee's expense. Section 10. ALTERATIONS AND IMPROVEMENTS A. No alterations, improvements or installations may be made on the Premises without the prior consent of Lessor. Such consent, if given, shall be subject to the needs and requirements of the Lessor in the operation of its Railroad and to such other conditions as Lessor determines to impose. In all events such consent shall be conditioned upon strict conformance with all applicable governmental requirements and Lessor's then- current clearance standards. B. All alterations, improvements or installations shall be at Lessee's sole cost and expense. C. Lessee shall comply with Lessor's then- current clearance standards, except (i) where to do so would cause Lessee to violate an applicable governmental requirement, or (ii) for any improvement or device in place prior to Lessee taking possession of the Premises if such improvement or device complied with Lessor's clearance standards at the time of its installation. D. Any actual or implied knowledge of Lessor of a violation of the clearance requirements of this Lease or of any governmental requirements shall not relieve Lessee of the obligation to comply with such requirements, nor shall any consent of Lessor be deemed to be a representation of such compliance. Section 11. AS -IS. Lessee accepts the Premises in its present condition with all faults, whether patent or latent, and without warranties or covenants, express or implied. Lessee acknowledges that Lessor shall have no duty to maintain, repair or improve the Premises. Section 12. RELEASE AND INDEMNITY. A. As a material part of the consideration for this Lease, Lessee, to the extent it may lawfully do so, waives and releases any and all claims against Lessor for, and agrees to indemnify, defend and hold harmless Lessor, its affiliates, and its and their officers, agents and employees ( "Indemnified Parties ") from and against, any loss, damage (including, without limitation, punitive or consequential damages), injury, liability, claim, demand, cost or expense (including, without limitation, attorneys' fees and court costs), fine or penalty (collectively, "Loss ") incurred by any person (including, without limitation, Lessor, Lessee, or any employee of Lessor or Lessee) (i) for personal injury or property damage caused to any person while on or about the Premises, or (ii) arising from or related to any use of the Premises by Lessee or any invitee or licensee of Lessee, any act or omission of Lessee, its officers, agents, employees, Iicensees or invitees, or any breach of this Lease by Lessee. B. The foregoing release and indemnity shall apply regardless of any negligence, misconduct or strict liability of any Indemnified Party, except that the indemnity, only, shall not apply to any Loss determined by final order of a court of competent jurisdiction to have been caused by the sole active direct negligence of any Indemnified Party. ATTACHMENT "B" 82 C. Where applicable to the Loss, the liability provisions of any contract between Lessor and Lessee covering the carriage of shipments or trackage serving the Premises shall govern the Loss and shall supersede the provisions of this Section 12. D. No provision of this Lease with respect to insurance shall limit the extent of the release and indemnity provisions of this Section 12. Section 13. TERMINATION. A. Lessor may terminate this Lease for Lessee's default by giving Lessee notice of termination, if Lessee (i) defaults under any obligation of Lessee under this Lease and, after written notice is given by Lessor to Lessee specifying the default, Lessee fails either to inunediately commence to cure the default, or to complete the cure expeditiously but in all events within thirty (30) days after the default notice is given, or (ii) Lessee abandons the Premises for a period of one hundred twenty (120) consecutive days. B. Notwithstanding the terms of this Lease set forth in Article 11, Lessor or Lessee may terminate this Lease without cause upon thirty (30) day's written notice to the other party; provided, however, that at Lessor's election, no such termination by Lessee shall be effective unless and until Lessee has vacated and restored the Premises as required in Section 15A, at which time Lessor shall refund to Lessee, on a pro rata basis, any unearned rental paid in advance. Notwithstanding anything to the contrary in this Lease, if Lessee has not complied with the requirements of Section 15 A, this Lease, together with all terms contained herein (including payment of rent) will remain in effect until the requirements of Section 15A are met, unless Lessor, in its sole discretion, elects to terminate this Lease. Section 14. LESSOR'S REMEDIES. Lessors remedies for Lessee's default are to (a) enter and take possession of the Premises, without terminating this Lease, and relet the Premises on behalf of Lessee, collect and receive the rent from reletting, and charge Lessee for the cost of reletting, and/or (b) terminate this Lease as provided in Section 13 above and sue Lessee for damages, and/or (c) exercise such other remedies as Lessor may have at law or in equity. Lessor may enter and take possession of the Premises by self -help, by changing locks, if necessary, and may lock out Lessee, all without being liable for damages. Section 15. VACATION OF PREMISES OF LESSEE'S PROPERTY. A. Upon termination howsoever of this Lease, Lessee (i) shall have peaceably and quietly vacated and surrendered possession of the Premises to Lessor, without Lessor giving any notice to quit or demand for possession, and (ii) shall have removed from the Premises all strictures, property and other materials not belonging to Lessor, including all personal property and restored the surface to as good a condition as the same was in before such strictures were erected, including, without limitation, the removal of foundations, the filling in of excavations and pits, and the removal of debris and rubbish. B. If Lessee has not completed such removal and restoration prior to termination of this Lease, Lessor may, at its election, and at any time or times, (i) perfoml the work and Lessee shall reimburse Lessor for the cost thereof within thirty (30) days after bill is rendered, (ii) take title to all or any portion of such structures or property by giving notice of such election to Lessee, and/or (iii) treat Lessee as a holdover tenant at will until such removal and restoration is completed. ATTACHMENT "B" 83 Section 16. FIBER OPTICS. Lessee shall telephone Lessor during nonnal business hours (7 :00 a.m. to 9:00 p.m., Central Time, Monday through Fridays, except for holidays) at 1- 800 -336 -9193 (also a 24 -hour, 7 -day number for emergency calls) to determine if fiber optic cable is buried on the Premises. Lessor may change the telephone number and hours of operation by giving Lessee notice of the change. If cable is buried on the Premises, Lessee will telephone the telecommunications company(ies), arrange for a cable locator, and make arrangements for relocation or other protection of the cable. Notwithstanding compliance by Lessee with this Section 16, the release and indemnity provisions of Section 12 above shall apply fully to any damage or destruction of any telecommunications system. Section 17. NOTICES. Any notice, consent or approval to be given under this Lease shall be in writing, and personally served, sent by facsimile to (402) 501 -0340, by email or by reputable courier service, or sent by certified mail, postage prepaid, return receipt requested, to Lessor at: Union Pacific Railroad Company, Attn: General Manager - Real Estate, Real Estate Department, 1400 Douglas Street, Stop 1690, Omalia, Nebraska 68179; and to Lessee at the above address, or such other address as a party may designate in notice given to the other party. Mailed notices shall be deemed served five (5) days after deposit in the U.S. Mail. Notices which are faxed, emailed, are personally served or sent by courier service shall be deemed served upon receipt. Section 18. ASSIGNMENT. A. Lessee shall not sublease the Premises, in whole or in part, or assign, encumber or transfer (by operation of law or otherwise) this Lease, without the prior consent of Lessor, which consent may be denied at Lessor's sole and absolute discretion. Any purported transfer or assignment without Lessor's consent shall be void and shall be a default by Lessee. B. Subject to this Section 18, this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. Section 19. CONDEMNATION. If, as reasonably determined by Lessor, the Premises cannot be used by Lessee because of a condemnation or sale in lieu of condemnation, then this Lease shall automatically terminate. Lessor shall be entitled to the entire award or proceeds for any total or partial condemnation or sale in lieu thereof, including, without limitation, any award or proceeds for the value of the leaseliold estate created by this Lease. Notwithstanding the foregoing, Lessee shall have the right to pursue recovery from the condemning authority of such compensation as may be separately awarded to Lessee for Lessee's relocation expenses, the taking of Lessee's personal property and fixtures, and the interruption of or damage to Lessee's business, Section 20. ATTORNEY'S FEES. If either party retains an attorney to enforce this Lease (including, without limitation, the indemnity provisions of this Lease), the prevailing party is entitled to recover reasonable attorney's fees. ATTACHMENT "B" 84 Section 21. RIGHTS AND OBLIGATIONS OF LESSOR. If any of the rights and obligations of Lessor under this Lease are substantially and negatively affected by any changes in the laws applicable to this Lease, whether statutory, regulatory or under federal or state judicial precedent, then Lessor may require Lessee to enter into an amendment to this Lease to eliminate the negative effect on Lessor's rights and obligations to the extent reasonably possible. Section 22. )ENTIRE AGREEMENT. This Lease is the entire agreement between the parties, and supersedes all other oral or written agreements between the parties pertaining to this transaction, including, without limitation, Lease Audit No. and any other lease under which all or any portion of the Premises was leased to Lessee. Notwithstanding the prior sentence, Lessee shall retain any and all obligations and liabilities which may have accrued under any other such agreements prior to the conunencement of the term of this Lease. This Lease may be amended only by a written instrument signed by Lessor and Lessee. ATTACHMENT "B" 85 Approved: Nsurance Group Created: 2/10106 Wt Modified: 7 /2/07 EXHIBIT C Union Pacilie Railroad Contract Insurance Requirements Lease of Land Lessee shall, at its sole cost and expense, procure and maintain during the life of this Lease (except as othenvise provided in this Lease) the following insurance coverage: A. Commercial General Liabj& insurance. Commercial general liability (CGL) with a limit of not less than $2,000,000 each occuiTence and an aggregate limit of not less than $4,000,000. CGL insurance must be written on ISO occurrence fomi CG 00 01 12 04 (or a substitute form providing equivalent coverage). The policy must also contain the following endorsement, which must be stated on the certificate of insurance: Contractual Liability Railroads ISO form CG 24 17 10 01 (or a substitute form providing equivalent coverage) showing "Premises" as the Designated Job Site. B. Business Automobile Coverap-e insurance. Business auto coverage written on ISO form CA 00 01 10 01 (or a substitute form providing equivalent liability coverage) with a combined single limit of not less $2,000,000 for each accident, and coverage must include liability arising out of any auto (including owned, hired, and non -owned autos). The policy must contain the following endorsements, which must be stated on the certificate of insurance: • Coverage For Certain Operations In Connection With Railroads ISO form CA 20 70 10 01 (or a substitute form providing equivalent coverage) showing "Premises" as the Designated Job Site. • Motor Carrier Act Endorsement - Hazardous materials clean up (MCS -90) if required by law. C. Workers Compensation and Employers Liability insurance. Coverage must include but not be limited to: Contractor's statutory liability under the workers' compensation laws of the state(s) affected by this Agreement. Employers' Liability (Part B) with limits of at least S500,000 each accident, 5500,000 disease policy limit $500,000 each employee. If Lessee is self - insured, evidence of state approval and excess workers compensation coverage must be provided. Coverage must include liability arising out of the U. S. Longshoremen's and Harbor Workers' Act, the Jones Act, and the Outer Continental Shelf Land Act, if applicable. In any and all Claims against Lessor by any employee of Lessee, Lessee's indemnification obligation under this section shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable under any workers compensation acts, disability benefits acts or other employee benefits acts, D. PollutioU Liability insurance. If permitted use as defined in this Lease includes any generation, handling, enrichment, storage, manufacture, or production of hazardous materials pollution liability insurance is required, Pollution liability coverage must be written on ISO form Pollution Liability Coverage Form Designated Sites CG 00 39 12 04 (or a substitute fortn providing equivalent liability coverage), with limits of at least $5,000,000 per occurrence and an aggregate limit of S 10,000,000. ATTACHMENT "B" 86 If hazardous materials are disposed of from the Premises, Lessee must furnish to Lessor evidence of pollution legal liability insurance maintained by the disposal site operator for losses arising from the insured facility accepting the materials, with coverage in minimum amounts of $1,000,000 per loss, and an annual aggregate of $2,000,000. E. Umbrella or Excess insurance. If Lessee utilizes umbrella or excess policies, these policies must "follow form" and afford no less coverage than the primary policy. Other Requirements F. All policy(ies) required above must include. Lessor as "Additional Insured" using ISO Additional Lisured Endorsement CG 20 11 (or a substitute form providing equivalent coverage). The coverage provided to Lessor as additional insured shall, to the extent provided under ISO Additional Insured Endorsement CG 20 11, provide coverage for Lessor's negligence whether sole or partial, active or passive, and shall not be limited by Lessee's liability under the indemnity provisions of this Lease. G. Lessee waives all rights against Lessor and its agents, officers, directors and employees for recovery of damages to the extent these damages are covered by the workers compensation and employers' liability or commercial umbrella or excess liability insurance obtained by Lessee required by this agreement. H. Punitive damages exclusion, if any, must be deleted (and the deletion indicated on the certificate of insurance), unless (a) insurance coverage may not lawfiilly be obtained for any punitive damages that may arise tinder this Lease, or (b) all punitive damages are prohibited by all states in which the Premises are located. 1. Prior to execution of this Lease, Lessee shall furnish Lessor with a certificate(s) of insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements in this Lease. J. All insurance policies must be written by a reputable insurance company acceptable to Lessor or with a current Best's Insurance Guide Rating of A- and Class VII or better, and authorized to do business in the state where the Premises are located. K. The fact that insurance is obtained by Lessee, or by Lessor on behalf of Lessee, will not be deemed to release or diminish the liability of Lessee, including, without limitation, liability under the indemnity provisions of this Lease. Damages recoverable by Lessor from Lessee or any third party will not be limited by the amount of the required insurance coverage. ATTACHMENT "B" 87 '� NOTE-. BEFORE YOU BEGIN ANY WORK, SEE AGREEMENT FOR FIBER OPTIC PROVISION. EXHIBIT "A" UNION PACIFIC RAILROAD COMPANY WOODBURN, OR M.P. 735.5 - Brooklyn Subdivision Lease to WILBUR-ELLIS COMPANY SCALE: P'= 100' REAL ESTATE DEPARTMENT OMAHA, NE Date: May 27, 2011 Folder: 02663-72 * LEGEND* Lease Area Shown ..................................................................... Dot Screen (RR)R/W Outlined ....................................... ........................ _.— – – — N,,-- - t� ATTACHMENT "B" 88 co' L i?L a ' y 13 12 rr rb ! .7 8 D L . REMINGTON'S T ADDITION --�- I 2 3 4 S. 6 7 0 - [6X6 SIGNAL CASE T ST. Y N ° -IQ - NQ2 _ N �, NQ Y� -- - 13 - - ' - IVY 3 4 To Par 20' 20• 20' J. N. Brad iry W914 akins FIBER Via, CALL BEFORE OPTIC YOU DIG CABLE 1.800.336.9193 LEGENDS LEASE AREA SHOWN .............. FENCE LINE SHOWN ••••••.......• X— —K UPRRCO. R/W OUTLINED • • • • • • . • ......... CADD 0266372 FILENAME SCAN S: /SP /OR /1GS /17 /ORV17S24.TIF FILENAME .ADan Prinks10266372.dan 6/24/2011 10:19:14 AM Y - II 5 -24 NOTE: BEFORE YOU BEGIN ANY WORK, SEE AGREEMENT FOR FIBER OPTIC PROVISIONS. EXHIBIT "A" UNION PACIFIC RAILROAD COMPANY WOODBURN. MARION COUNTY. OR M.P. 735.5 - BROOKLYN SUB. TO ACCOMPANY AGREEMENT WITH WILBUR ELLIS. INC. SCALE: 1" - 100' OFFICE OF REAL ESTATE OMAHA. NEBRASKA DATE: 5 -27 -2011 DSK FILE: 2663 -72 ATTACHMENT "B" 89 N 2 25 Wooddu 23 � 4 ? z !`r. eLEaRaNeE BEHIND SIGNAL CASE JF Co. AC. TUTAL Lf_ASF ARLA: 22.290 SOFT. / 0.51 i H J. N. Brad iry W914 akins FIBER Via, CALL BEFORE OPTIC YOU DIG CABLE 1.800.336.9193 LEGENDS LEASE AREA SHOWN .............. FENCE LINE SHOWN ••••••.......• X— —K UPRRCO. R/W OUTLINED • • • • • • . • ......... CADD 0266372 FILENAME SCAN S: /SP /OR /1GS /17 /ORV17S24.TIF FILENAME .ADan Prinks10266372.dan 6/24/2011 10:19:14 AM Y - II 5 -24 NOTE: BEFORE YOU BEGIN ANY WORK, SEE AGREEMENT FOR FIBER OPTIC PROVISIONS. EXHIBIT "A" UNION PACIFIC RAILROAD COMPANY WOODBURN. MARION COUNTY. OR M.P. 735.5 - BROOKLYN SUB. TO ACCOMPANY AGREEMENT WITH WILBUR ELLIS. INC. SCALE: 1" - 100' OFFICE OF REAL ESTATE OMAHA. NEBRASKA DATE: 5 -27 -2011 DSK FILE: 2663 -72 ATTACHMENT "B" 89 COUNCIL BILL NO. 2870 RESOLUTION NO. 1999 A RESOLUTION AGREEING TO THE PERMANENT CLOSURE OF THE MILL STREET RAILROAD CROSSING PURSUANT TO AN ORDER TO BE ISSUED BY THE OREGON DEPARTMENT OF TRANSPORTATION, RAIL DIVISION WHEREAS, the City Council functions as the City of Woodburn Road Authority, and WHEREAS, the City Council acknowledges that the Oregon Department of Transportation has jurisdictional authority to administer all grade crossings within the State of Oregon between railroad and highway systems and may issue crossing orders, including closures, to insure safe passage for the public, and WHEREAS, the City Council acknowledges that Union Pacific Railroad submitted a Railroad- Highway Public Crossing Safety Application to the Oregon Department of Transportation Rail Division in September 2010 to close the Mill Street railroad crossing, and WHEREAS, all parties affected by the proposed closure of the Mill Street railroad crossing have met and agree that the crossing must be closed, and WHEREAS, based upon the agreement of the parties, the City Council is willing to withdraw its initial opposition to the Railroad- Highway Public Crossing Safety Application, NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. The City agrees to the permanent closure of the Mill Street railroad crossing pursuant to a railroad crossing closure order to be issued by the Oregon Department of Transportation, Rail Division. Section 2. The City will expend City funds to remove Mill Street access to the Union Pacific Railroad right -of -way so that roadway traffic will not be able to cross Union Pacific Railroad right -of -way. Section 3. The City will comply the closure order and conditions imposed by the Oregon Department of Transportation, Rail Division for the closure of the Mill Street railroad crossing. Page 1 - Council Bill No. 2870 Resolution No. 1999 ATTACHMENT "C" 90 Approved as to form: City Attorney Date Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Christina Shearer, City Recorder City of Woodburn, Oregon Page 2 - Council Bill No. 2870 Resolution No. 1999 ATTACHMENT "C" 91 I oOBuR July 25, 2011 TO: Honorable Mayor and City Council through City Administrator FROM: Christina Shearer, City Recorder SUBJECT: Second Reading of Ordinance 2873 An Ordinance Adopting Building Division Fees for Inclusion in the Master Fee Schedule: Repealing all Building Fees and Charges that are Inconsistent with this Ordinance; and Setting an Effective Date RECOMMENDATION After a second reading, adopt the Ordinance. BACKGROUND On July 11, 2011 a majority of the City Council approved Ordinance 2873, with five Councilors voting in favor and one Councilor in opposition. The second reading of this ordinance has been scheduled for the meeting. The ordinance and all supporting materials are attached. DISCUSSION Chapter VII of the Woodburn Charter provides that Ordinances must be read in Council meetings on two separate days. Ordinances may be enacted at a single meeting, however, if they are passed by a unanimous vote. Since the Ordinance was not passed unanimously, it is before you for a second reading and final decision. Agenda Item Review: City Administrator _x_ City Attorney _x Finance _x 92 I oOBuR July 11, 2011 TO: Honorable Mayor and City Council through City Administrator and, Economic and Development Services Director FROM: Steve Krieg, Building Official SUBJECT: Building Division Proposed Fee Changes RECOMMENDATION After receiving public input, adopt the attached ordinance increasing building inspection fees, which will assist in the financial support for the operation of the Building Division. BACKGROUND The building inspection program is funded by fees for permits and plan reviews in accordance with the Oregon Revised Statutes (ORS). The ORS requires that fees collected by a municipality be used for the administration and enforcement of a building inspection program for which the municipality has assumed responsibility. Building inspection revenues are restricted in that they may only be expended on building related programs and services. During the recent downturn in construction activity, the Building Division has been operated through a reserve fund from collected permit and plan review fees. The Building Division Reserve Fund is approximately equal to one year's operating costs. Over the past three years, the Building Division Reserve Fund has been diminishing. With the slow recovery in construction permit activity and the economy, the Building Division has had to spend down its reserve fund (See Attachment "A "). Without a fee increase at current construction levels, the Building Division Reserve Fund is expected to be depleted sometime in mid to late 2011. Fees need to periodically be evaluated to determine cost recovery and needed adjustments. The last time Building Division fees were increased was July 2009. At that time the fees were increased between 5% and 35 %. The last fee schedule revision was intended to bring the City into compliance with the fee methodology adopted by the State of Oregon Building Codes Division. The Agenda Item Review: City Administrator _X City Attorney _X_ Finance 93 Honorable Mayor and City Council July 11, 2011 Page 2 2009 fee increase improved building revenue, however it was in adequate to recover the Building Divisions' expenses. The proposed Uniform Fee Table will help recover the current costs of providing service and assist the Building Division to meet customers' needs. • Economic Downturn & Fee Goal The departmental goal is to obtain permit and plan review fees collected need to be set at an amount that allows the Building Division to recover the costs of operations including overhead. To help offset the downturn in the economy, the Building Division has cut operating costs by going from 3.3 FTE in fiscal year 2007 -08 to 1.3 FTE currently (See Attachment "A "). Typically with building fees, large commercial projects subsidize the cost of services for smaller construction projects. Likewise new home construction subsidizes the cost of services for smaller residential remodeling projects. Few large commercial projects or new single - family homes have been constructed over the past few years. Building activity continues to increase; however, it is dominated by small commercial and residential remodeling projects which have lower fees. The current permit activity is 20 percent above two years ago. Currently, Woodburn has low commercial and residential building permit fees compared to other jurisdictions (See Attachments" D", "E" and "F "). The Building Division proposes to increase the Uniform Fee Table. The permit fees would increase by approximately 15 to 50 percent. Residential mechanical permit fees would be increased by 25 to 38 percent. Some miscellaneous fees would stay the same and some would be increased less than 50 percent. The goal of the proposed fee increase is to increase the Building Division's revenue by approximately 50 percent overall. The plan review fees would increase from 65 to 85 percent for residential projects requiring plan review and from 65 to 100 percent for all other projects requiring plan review. • Notification The Building Division notified customers and the State Building Codes Division (BCD) of the proposed fee increase in May, 2011. The proposed fee increase has been on the BCD's web site since May 2011. BCD e- mailed the proposed fee increase to all interested parties (contractors, trade organizations and individuals). The City met with the Home Builders Association on June 6 to discuss the proposed fee increase. Honorable Mayor and City Council July 11, 2011 Page 3 After listening to their concerns, the proposed residential fee increase was adjusted downward. With that modification we obtained their support for this proposed fee increase. We agreed to revisit the residential fees in one year's time. The Woodburn Building Division also mailed out individual notices of the proposed fee increase to approximately 80 contractors who have obtained permits with Woodburn in the last two years. Around a dozen contractors provided verbal comments regarding the proposed fee increase. Those comments were all supportive or neutral of the proposal. • Marion County Home Builder's Support The Home Builders Association supports the proposed fee increase (See Attachment "G "). DISCUSSION Fees need to periodically be evaluated to determine cost recovery and needed adjustments. The Building Division is recommending a new fee category for solar installations in accordance with the revised consistent form and fee methodology adopted by the State of Oregon Building Codes Division. This new fee would align Woodburn with other jurisdictions. This fee would help to offset the costs of providing this service. The cost -of- services have been evaluated. The Building Division is recommending this fee increase based on the construction activity and revenue received over the past two years to assist in covering its operating costs. The Building Division wants to position itself to be ready when the economy starts its upward trend so the Building Division will have the resources needed to meet the needs of their customers. A history of building permit activity is included for a comparison by permit type (See Attachment "C "). FINANCIAL IMPACT The fee increase will increase Building Fund revenue by an amount that will be determined by the volume and type of construction. ATTACHMENTS: A. Building Division Budget B. All Permit Fees, One - and Two - Family Dwelling Mechanical Fees and Miscellaneous 95 Honorable Mayor and City Council July 11, 2011 Page 4 C. Number of Permits Issued by Type D. Survey of Local Building Permit Fees E. Survey of Local Residential Mechanical Permit Fees F. Survey of Local Commercial Mechanical Permit Fees G. Home Builders Association Letter Building Division Budget Revenue Total Ex ense Total FTE Revenue Fund 123 - 000 -3221 Expense Fund 123 - 521 -2241 FY 03 - 04 1 FY 04 - 05 1 FY 05 - 06 1 FY 06 - 07 1 FY 07 - 08 1 FY 08 - 09 1 FY 09 - 10 1 FY 10 - 11* FY 11 - 12** $ 288,651 1 $ 249,025 1 $ 321,188 1 $ 309,992 1 $ 265,833 1 $ 110,674 1 $ 158,236 $ 162,327 $ 168,366 $ 268,021 $ 299,727 $ 286,504 $ 319,764 $ 316,946 $ 262,141 $ 215,142 $ 258,509 $ 256,620 3.3 3.3 3.3 3.3 3.3 1.63 1.0 1.3 1.3 - tsurnmea - rroposea - tsurnwea -- rsuageea Attachment "A" Building Division Reserve Fund Building Division Reserve Fund Fiscal Year Comnarison Fiscal Year'1O -'11 Date Contingency Increase/ Decrease July 1, 2002 $ 304,995 $ July 1, 2003 $ 353,044 $ 48,049 July 1, 2004 $ 373,822 $ 20,778 July 1, 2005 $ 323,120 $ 50,702 July 1, 2006 $ 366,579 $ 43,459 July 1, 2007 $ 361,653 $ 4,926 July 1, 2008 $ 310,540 $ 51,113 Ju1, 2009 $ 159,073 $ 151,467 Jul, l 1, 2010 $ 88,406 $ 70,667 Jul 1, 2011* $ 7,776 $ 96,182 Jul 1, 2012 ** $ 96,030 $ 88,254 - tsurnwea * *Budgeted Date Contingency Increase/ Decrease July 31, 2010 $ 77,323 $ 11,083 August 31, 2010 $ 76,439 884) September 30, 2010 $ 70,409 6,030) October 31, 2010 $ 65,471 $ 4,938 November 30, 2010 $ 51,969 $ 13,502) December 31, 2010 $ 46,953 $ 5,016 ,January 31, 2011 $ 36,069 $ 10,884 28,2011 $ 36,887 $ 818 F r March 31, 2011 1 $ 56,040 $ 19,153 Comparison of FY 03 -04 to FY 11 -12 58 96 39 Page 1 of 1 Affil City of Woodburn, Building Division Commercial, Industrial, Public, and Multi - Family Permit and Plan Review Fees (All Permits Except One -and Two - Family Building and Mechanical Permits) Effective August 99, 2011 Service Fee Notes (Additional Fees, Units, etc.) Building and Mechanical Plan Review Fees (includes fire suppression and fire alarm permits): Building and Mechanical Permit Valuations (includes fire suppression and fire alarm permits): $1.00 to $2000.00 $97.50 minimum permit fee. $2001.00 to $25,000.00 $97.50 for the first $2,000, plus $11.10 for each additional $100 minimum one hour, charged per hour. $1,000.00 or fraction thereof, to and including $100 minimum one hour, charged per hour. $25,000. $25,001.00 to $50,000.00 $352.50 for the first $25,000, plus $9.30 for each additional $1,000.00 or fraction thereof, to and including $50,000. $50,001.00 to $100,000.00 $585.00 for the first $50,000, plus $6.00 for each additional $1,000.00 or fraction thereof, to and including $100,000. $100,001.00 and up $885.00 for the first $100,000, plus $5.50 for each additional $1,000.00 or fraction thereof. Note 1: The mechanical valuation includes the cost of all equipment and installation costs. Note 2: The building valuation shall be the greater of the ICC Building Valuation Data Table current as of April 1 of each year or the valuation as provided by the applicant. Building and Mechanical Plan Review Fees (includes fire suppression and fire alarm permits): Plan Review (Building and Mechanical) 100% of permit fee. Plan Review (Fire- and Life - Safety) 65% of building permit fee. Additional Plan Review (required by changes, additions, or revisions to approved plans) $100 minimum one hour, charged per hour. Additional Plan Review (prior to permit approval, charged after the second plan review) $100 minimum one hour, charged per hour. (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Attachment "B" Page 1 of 5 98 City of Woodburn, Building Division One- and Two - Family Building Permit and Plan Review Fees Effective August 11, 2011 Service Fee Notes (Additional Fees, Units, etc.) One- and Two - Family Dwelling Building Permit Valuations: $1.00 to $2000.00 $67.00 minimum permit fee. $2001.00 to $25,000.00 $67.00 for the first $2,000, plus $7.62 for each additional Additional Plan Review $100 $1,000.00 or fraction thereof, to and including (required by changes, additions, or $25,000. $25,001.00 to $50,000.00 $242.00 for the first $25,000, plus $6.40 for each additional Additional Plan Review $100 $1,000.00 or fraction thereof, to and including (prior to permit approval, charged after the $50,000. $50,001.00 to $100,000.00 $402.00 for the first $50,000, plus $4.12 for each additional $1,000.00 or fraction thereof, to and including $100,000. $100,001.00 and up $608.00 for the first $100,000, plus $3.55 for each additional $1,000.00 or fraction thereof. Note 1: The building valuation for new construction and additions shall be based on the ICC Building Valuation Data Table current as of April 1 of each year. One -and Two - Family Dwelling Carport, Covered Porch, Patio, and Deck: The square footage of a carport, covered porch, patio, or deck shall be calculated separately at fifty (50) percent of the value of a private garage from the most current ICC Building Valuation Data table. One -and Two - Family Dwelling Addition, Alteration, and Repairs: Permit fees shall be calculated based on the fair market value as determined by the building official and then applying the valuation to the permit fee table. One -and Two - Family Dwelling Building Plan Review Fees: Plan Review (One- and Two - Family 85% of building permit fee. Dwelling) Additional Plan Review $100 minimum one hour, charged per hour. (required by changes, additions, or revisions to approved plans) Additional Plan Review $100 minimum one hour, charged per hour. (prior to permit approval, charged after the second plan review) (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Attachment "B" Page 2 of 5 99 City of Woodburn Building Division One- and Two- Family Dwelling Mechanical Fees (Includes Manufactured Homes) Effective August 99, 2011 ITEM Fee (per appliance /equipment) Heating & Cooling (includes relocation Gas Connections (unlimited number of connections) $25.00 Furnace including ductwork & vent (forced air) $25.00 Air Conditioner, Heat Pump, or Evaporative Cooler $25.00 Unit Heater (suspended, recessed wall, floor mounted) $25.00 Air Handling Unit $25.00 Fireplace / Insert / Stove / Log Lighter / Decorative Fireplace $25.00 Boiler (Gas Connection and Venting Only) $25.00 Venting (includes relocation) Range Hood $25.00 Bath Fan $25.00 Clothes Dryer Exhaust $25.00 Exhaust Fan $25.00 Water Heater Venting $25 Miscellaneous (includes relocation) Barbecue $25.00 Other Equipment or Appliance not Listed above $25.00 Minimum Permit Fee $90.00 (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Attachment "B" Page 3 of 5 100 City of Woodburn, Building Division Miscellaneous Fees Effective August 11, 2011 Attachment "B" Page 4 of 5 101 Specialty Program Fees: Deferred Submittals (Plan Review) 100% of permit fee calculated using the value of the deferred portion of the project, with a minimum fee of $300.00. This fee is in addition to the building or mechanical permit fee. A separate fee is assessed for each deferred submittal of the project. Phased Permits (Plan Review) 20% of building permit fee calculated using the value of the entire project, plus $300.00 up to a maximum fee of $1,500.00. This fee is in addition to the permit fee. A separate fee is assessed for each phase of the project. Master Plan Review Fee 100% of building permit fee for first plan and 45% of building permit fee for each separate review of same construction plan. Administrative Fee for Processing State of Oregon Master Plans or Plans Reviewed by a Third Party Plans Examiner 10% of building permit fee with a minimum fee of $200.00 Expedited Plan Review $150.00 charged per hour, in addition to the calculated plan review fee. Inspection Fees: Inspections Outside Normal Hours $150 charged per hour (minimum 2 hours). Re- Inspections (for which no fee specifically indicated) $100 charged per hour (minimum 1 hour). Inspections (for which no fee specifically indicated) $100 charged per hour (minimum 1 hour). Other Fees: of permit fee, fee is in addition to the permit fee with a minimum fee of $300.00. Issued for 30 days, $100 for each 30 day reissue. Investigation Fee Temporary Certificate of Occupancy 150% $300.00 Change of Occupancy $100.00 charged per hour, minimum fee of two hours. Stand Alone Residential Sprinkler System Fees: Square Footage Fee 0 to 2,000 square feet $450.00 2,001 to 3,600 square feet $600.00 3,601 to 7,200 square feet $750.00 7,200 square feet and above $900.00 Attachment "B" Page 4 of 5 101 City of Woodburn, Building Division Miscellaneous Fees Effective August 11, 2011 (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Attachment "B" Page 5 of 5 102 Manufactured Dwelling and Cabana Installation Permits: A single fee is charged for the set -up of manufactured homes. This single fee includes the concrete slab, runners, or foundations when they comply with the prescriptive requirements of the Oregon Manufactured Dwelling standard, electrical feeder and plumbing connections, and all cross -over connections. Decks, other accessory structures, and foundations that do not comply with the prescriptive requirements of the Oregon Manufactured Dwelling and Park Specialty Code, utility connections beyond 30 lineal feet, new electrical services or additional branch circuits, new plumbing, and other such items that fall under the building code require separate permits. Installation Permit $370.00 Earthquake- and wind - resistant bracing $130.00 systems Reinspections $130.00 Camp and Park Permits: The fees for each permit issued for the construction, addition, or alteration of a manufactured dwelling park, recreational vehicle park, or organizational camp developed shall be calculated using the valuation of the work and the most recently adopted commercial building permit valuation table. Plan Review 100% of permit fee. Excavation and Grading Permits: The fee for an excavation and grading permit shall be calculated using the valuation of the work and the most recently adopted commercial building permit valuation table. Plan Review 100% of permit fee. Demolition Permits: _ The fee for a demolition permit shall be calculated using the valuation of the work and the most recently adopted building permit valuation table. Plan Review 100% of permit fee. Residential Roof -Top Solar System Fees: Fee Prescriptive system $300.00 Flat fee, includes one inspection. Engineered system Building Permit Fee is based on the valuation using the residential building permit valuation table. Building Permit Fee 100% of permit fee calculated using the valuation of the project, with a minimum fee of $300.00. of permit fee for plan review. Plan Review Fee 100% (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Attachment "B" Page 5 of 5 102 City of Woodburn Building Division Number of Permits Issued by Type Commercial and industrial permits are not tracked by new or significant rehabs, only by numbers. Attachment "C if-11M. iki �FRaZc�i�Z�yfil Page 1 of 1 103 FY 1998 -1999 1 FY 1999 -2000 FY 2000 -2001 FY 2001 -2002 FY 2002 -2003 FY 2003 -2004 FY 2004 -2005 New Residence 1191 210 100 148 122 141 89 Multi - Family 3 0 0 134 0 0 0 Assisted Living Facilities 0 0 0 210 0 1 0 Residential Adds & Alts 52 30 22 81 38 55 50 Industrial 2 0 0 0 2 1 0 Commercial 22 4 7 61 66 114 130 Signs and Fences 47 73 41 30 28 39 54 Manufactured Homes 27 9 4 15 5 17 15 Totalsl 2721 3261 1741 6791 2611 368 338 Commercial and industrial permits are not tracked by new or significant rehabs, only by numbers. Attachment "C if-11M. iki �FRaZc�i�Z�yfil Page 1 of 1 103 FY 2005 -2006 FY 2006 -2007 FY 2007 -2008 FY 2008 -2009 FY 2009 -2010 FY 2010 -2011' New Residence 96 63 73 10 7 1 Multi - Family 3 20 21 11 0 0 Assisted Living Facilities 0 0 0 0 1 0 Residential Adds & Alts 44 60 45 43 35 19 Industrial 0 1 4 10 7 14 Commercial 100 122 76 80 137 101 Signs and Fences 31 17 6 2 3 4 Manufactured Homes 9 15 11 8 3 0 Totals 283 298 236 164 193 139 Commercial and industrial permits are not tracked by new or significant rehabs, only by numbers. Attachment "C if-11M. iki �FRaZc�i�Z�yfil Page 1 of 1 103 Survey of Local BUILDING Permit Fees Created: April 2011 Revised: June 2011 This is Not a comparison of SDC's, Plumbing, Mechanical, Electrical, Land Use or other fees - ONLY BUILDING PERMIT FEES. Many of the agencies surveyed are currently reviewing their programs and may propose increases. NOTE: THIS IS FOR COMPARISON PURPOSES ONLY, CONTACT JURISDICTIONS FOR ACCURATE NUMBERS. Valuation & Fee $1 -500 $2,000 $25,000 $50,000 $100,000 $250,000 First $100K Plus /$1000 Newberg 21.50 42.25 221.90 368.15 563.15 1,050.65 563.15 3.25 Silverton 42.50 221.90 368.15 563.15 1,050.65 563.15 3.25 Woodburn (Currently) 65.00 235.00 390.00 590.00 1,107.50 590.00 3.45 Woodburn (Proposed Residential Fee) 67.00 242.00 402.00 608.00 1,140.50 608.00 3.55 Marion County 60.00 244.00 400.25 637.75 1,230.25 637.75 3.95 Wilsonville ** 48.20 86.30 319.75 509.75 763.75 1,399.75 763.75 4.24 Oregon City 40.00 72.19 328.13 536.25 811.88 1,656.38 811.88 5.63 Milwaukie (Proposing a fee increase) 75.00 327.52 542.02 830.52 1,562.52 830.52 4.88 Tigard* 66.25 330.29 549.04 861.54 1,530.54 861.54 4.46 Albany** 75.00 330.00 540.00 863.00 1,583.00 863.00 4.80 Woodburn (Proposed Commercial Fee) 97.50 352.50 585.00 885.00 1,662.00 885.00 5.18 Forest Grove 22.50 63.00 325.00 580.00 879.00 1,629.00 879.00 5.00 Beaverton ** 76.85 122.60 404.35 634.35 961.85 1,689.35 961.85 4.85 Canby 88.00 374.00 624.00 974.00 1,874.00 974.00 6.00 West Linn 100.00 406.00 672.00 1,029.00 1,779.00 1,029.00 5.00 Average of Fees 41.81 74.84 310.82 513.40 788.11 1,463.01 788.11 4.50 `Additional fee schedule for $500K and above in value .. Multiple Fee Schedules Attachment "D" 104 Survey of Local RESIDENTIAL MECHANICAL Permit Fees Created: April 2011 This is Not a comparison of SDC's, Plumbing, Building, Electrical, Land Use or other fees - ONLY MECHANICAL PERMIT FEES. Many of the agencies surveyed are currently reviewing their programs and may propose increases. NOTE: THIS IS FOR COMPARISON PURPOSES ONLY, CONTACT JURISDICTIONS FOR ACCURATE NUMBERS. Minimum Fee per Piece of Maximum Fee per Piece Residential Mechanical Permits Minimum Permit Fee Equipment of Equipment McMinnville 25.50 6.25 24.25 Corvallis 40.00 20.00 30.00 Wilsonville 44.60 9.20 23.05 Oregon City 52.25 8.00 20.00 Newberg 60.00 9.54 84.75 Milwaukie 60.00 18.50 47.00 Sweet Home 65.00 15.00 40.00 Salem 65.00 20.00 20.00 Woodburn (Currently) 65.00 20.00 20.00 Marion County 67.25 10.25 20.75 The Building Department 69.00 14.00 35.00 Albany 72.00 10.00 30.00 Dallas* 75.00 7.12 51.66 Benton County 80.00 20.00 30.00 Canby 88.00 21.00 51.00 Tigard 90.00 23.32 61.06 Woodburn (Proposed) 90.00 25.00 25.00 Beaverton 92.10 22.00 57.60 West Linn 100.00 19.00 31.00 Average of Fees 68.46 15.69 36.95 'Proposed fee, jurisdiction is going through a fee increase Attachment "E" 105 Survey of Local COMMERCIAL MECHANICAL Permit Fees Created: April 2011 This is Not a comparison of SDC's, Plumbing, Building, Electrical, Land Use or other fees - ONLY MECHANICAL PERMIT FEES Many of the agencies surveyed are currently reviewing their programs and may propose increases. NOTE: THIS IS FOR COMPARISON PURPOSES ONLY, CONTACT JURISDICTIONS FOR ACCURATE NUMBERS. `Proposed fee, jurisdiction is going through a fee increase "Additional fee schedule for $500K and above in value Attachment "F" i� Minimum Permit Commercial Mechanical Permits Fee $2,500 $25,000 $50,000 First $100K Plus /$1000 Plan Review Wilsonville - 61.55 61.55 140.25 260.65 432.65 1.54 25% Woodburn (Currently) 65.00 72.40 235.00 390.00 590.00 3.45 65% Benton County 80.00 113.45 282.85 426.60 616.60 3.00 50% Marion County 67.25 78.25 318.00 543.00 843.00 4.00 20% Salem 65.00 65.00 318.00 543.00 843.00 4.00 25% Sweet Home 65.00 65.00 318.00 543.00 843.00 4.00 25% Albany 75.00 86.10 330.00 540.00 863.00 4.80 35% Woodburn (Proposed) 97.50 108.60 352.50 585.00 885.00 5.18 100% McMinnville 40.00 64.00 289.00 514.00 914.00 5.00 25% West Linn 100.00 100.00 406.00 672.00 1,029.00 5.00 65% The Building Department 70.00 70.00 320.00 570.00 1,070.00 7.00 25% Milwaukie 60.00 60.00 303.00 565.50 1,090.00 7.25 25% Dallas* 75.00 75.00 264.00 464.00 1,164.00 6.00 25% Oregon City 52.25 52.25 359.10 626.60 1,166.00 5.10 25% Newberg 72.50 84.00 434.00 771.50 1,396.45 11.00 25% Corvallis 72.50 84.00 434.00 771.50 1,396.50 1.10 50% Canby 88.00 88.00 483.00 808.00 1,458.00 10.00 37% Beaverton 92.10 92.10 364.15 1,288.15 2,463.15 2.75 25% Tigard 69.06 130.46 728.71 1,363.71 2,608.71 29.20 25% Average of Fees 71.98 81.59 351.56 644.54 1,140.63 6.28 37% `Proposed fee, jurisdiction is going through a fee increase "Additional fee schedule for $500K and above in value Attachment "F" i� June 30, 201 1 Scott Derickson City of Woodburn 270 Montgomery St Woodburn, OR 97071 Dear Scott: HBA HOME BUILDERS ASSOCIATION OF MARION AND POLK COUNTIES 385 Taylor St NE Salem, OR 97301 -8340 ph 503 -399 -1500 fax 503 - 399 -0651 www.HomeBuildersAssociation.org I want to thank you and your staff for meeting with me earlier this month to discuss our organization's concerns with the proposed building department fee increases. As a result of our discussions during this meeting, the City of Woodburn has scaled back the one - and - two - family building permit fee increase to 3 %, and the plan review fee to 85% of the structural permit. As such, the Home Builders Association of Marion & Polk Counties can support the proposed changes to the residential permit fees. Sincerely, . Mike Erdmann Chief Executive Officer Attachment "G" Affiliated With /\ National 0�� NAHB Builders tlan � SOC ToN of Nome �� Builders 107 COUNCIL BILL NO. 2873 ORDINANCE NO. 2479 AN ORDINANCE ADOPTING BUILDING DIVISION FEES FOR INCLUSION IN THE MASTER FEE SCHEDULE: REPEALING ALL BUILDING FEES AND CHARGES THAT ARE INCONSISTENT WITH THIS ORDINANCE; AND SETTING AN EFFECTIVE DATE WHEREAS, the City has established a building inspection program under state statutes and the Oregon Administrative Rules of the State Building Codes Division; and WHEREAS, under the authority of ORS 455.150, the City administers those specialty codes and building requirements adopted by the State that the City is granted authority to administer, and WHEREAS, it is necessary for the City to update the building inspection program fees of the state specialty codes so that they can be enforced and administered within the corporate limits of the City and uniformly through out the State, and WHEREAS, pursuant to ORS 294.160, the City Council provided an opportunity for interested persons to comment on the enactment of this ordinance and its proposed building fee increase, NOW, THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. The schedule of Building fees and charges affixed and incorporated as Exhibit "A" is adopted by the City and shall be included in the Master Fee Schedule. Section 2. As required by state law, all structural permit fees for new construction and additions shall be calculated using the ICC Building Valuation Data Table current as of April 1 of each year, multiplied by the square footage of the dwelling to determine the valuation. Section 3. All Building fees and charges that are inconsistent with those contained in the attached schedule are hereby repealed. Section 4. This Ordinance is effective on August 11, 2011. Page 1 - COUNCIL BILL NO. 2873 ORDINANCE NO. 2479 108 Approved as to form: City Attorney Date Passed by the Council Submitted to the Mayor Approved by the Mayor Approved: Filed in the Office of the Recorder ATTEST: Christina Shearer, City Recorder City of Woodburn, Oregon Page 2- COUNCIL BILL NO. 2873 ORDINANCE NO. 2479 Kathryn Figley, Mayor 109 City of Woodburn, Building Division Commercial, Industrial, Public, and Multi - Family Permit and Plan Review Fees (All Permits Except One -and Two - Family Building and Mechanical Permits) Effective August 99, 2011 Service Fee Notes (Additional Fees, Units, etc.) Building and Mechanical Plan Review Fees (includes fire suppression and fire alarm permits): Building and Mechanical Permit Valuations (includes fire suppression and fire alarm permits): $1.00 to $2000.00 $97.50 minimum permit fee. $2001.00 to $25,000.00 $97.50 for the first $2,000, plus $11.10 for each additional $100 minimum one hour, charged per hour. $1,000.00 or fraction thereof, to and including $100 minimum one hour, charged per hour. $25,000. $25,001.00 to $50,000.00 $352.50 for the first $25,000, plus $9.30 for each additional $1,000.00 or fraction thereof, to and including $50,000. $50,001.00 to $100,000.00 $585.00 for the first $50,000, plus $6.00 for each additional $1,000.00 or fraction thereof, to and including $100,000. $100,001.00 and up $885.00 for the first $100,000, plus $5.50 for each additional $1,000.00 or fraction thereof. Note 1: The mechanical valuation includes the cost of all equipment and installation costs. Note 2: The building valuation shall be the greater of the ICC Building Valuation Data Table current as of April 1 of each year or the valuation as provided by the applicant. Building and Mechanical Plan Review Fees (includes fire suppression and fire alarm permits): Plan Review (Building and Mechanical) 100% of permit fee. Plan Review (Fire- and Life - Safety) 65% of building permit fee. Additional Plan Review (required by changes, additions, or revisions to approved plans) $100 minimum one hour, charged per hour. Additional Plan Review (prior to permit approval, charged after the second plan review) $100 minimum one hour, charged per hour. (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Exhibit "A" Page 1 of 5 110 City of Woodburn, Building Division One- and Two - Family Building Permit and Plan Review Fees Effective August 11, 2011 Service Fee Notes (Additional Fees, Units, etc.) One- and Two - Family Dwelling Building Permit Valuations: $1.00 to $2000.00 $67.00 minimum permit fee. $2001.00 to $25,000.00 $67.00 for the first $2,000, plus $7.62 for each additional Additional Plan Review $100 $1,000.00 or fraction thereof, to and including (required by changes, additions, or $25,000. $25,001.00 to $50,000.00 $242.00 for the first $25,000, plus $6.40 for each additional Additional Plan Review $100 $1,000.00 or fraction thereof, to and including (prior to permit approval, charged after the $50,000. $50,001.00 to $100,000.00 $402.00 for the first $50,000, plus $4.12 for each additional $1,000.00 or fraction thereof, to and including $100,000. $100,001.00 and up $608.00 for the first $100,000, plus $3.55 for each additional $1,000.00 or fraction thereof. Note 1: The building valuation for new construction and additions shall be based on the ICC Building Valuation Data Table current as of April 1 of each year. One -and Two - Family Dwelling Carport, Covered Porch, Patio, and Deck: The square footage of a carport, covered porch, patio, or deck shall be calculated separately at fifty (50) percent of the value of a private garage from the most current ICC Building Valuation Data table. One -and Two - Family Dwelling Addition, Alteration, and Repairs: Permit fees shall be calculated based on the fair market value as determined by the building official and then applying the valuation to the permit fee table. One -and Two - Family Dwelling Building Plan Review Fees: Plan Review (One- and Two - Family 85% of building permit fee. Dwelling) Additional Plan Review $100 minimum one hour, charged per hour. (required by changes, additions, or revisions to approved plans) Additional Plan Review $100 minimum one hour, charged per hour. (prior to permit approval, charged after the second plan review) (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Exhibit "A" Page 2 of 5 111 City of Woodburn Building Division One- and Two- Family Dwelling Mechanical Fees (Includes Manufactured Homes) Effective August 99, 2011 ITEM Fee (per appliance /equipment) Heating & Cooling (includes relocation Gas Connections (unlimited number of connections) $25.00 Furnace including ductwork & vent (forced air) $25.00 Air Conditioner, Heat Pump, or Evaporative Cooler $25.00 Unit Heater (suspended, recessed wall, floor mounted) $25.00 Air Handling Unit $25.00 Fireplace / Insert / Stove / Log Lighter / Decorative Fireplace $25.00 Boiler (Gas Connection and Venting Only) $25.00 Venting (includes relocation) Range Hood $25.00 Bath Fan $25.00 Clothes Dryer Exhaust $25.00 Exhaust Fan $25.00 Water Heater Venting $25 Miscellaneous (includes relocation) Barbecue $25.00 Other Equipment or Appliance not Listed above $25.00 Minimum Permit Fee $90.00 (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Exhibit "A" Page 3 of 5 112 City of Woodburn, Building Division Miscellaneous Fees Effective August 11, 2011 Exhibit "A" Page 4 of 5 113 Specialty Program Fees: Deferred Submittals (Plan Review) 100% of permit fee calculated using the value of the deferred portion of the project, with a minimum fee of $300.00. This fee is in addition to the building or mechanical permit fee. A separate fee is assessed for each deferred submittal of the project. Phased Permits (Plan Review) 20% of building permit fee calculated using the value of the entire project, plus $300.00 up to a maximum fee of $1,500.00. This fee is in addition to the permit fee. A separate fee is assessed for each phase of the project. Master Plan Review Fee 100% of building permit fee for first plan and 45% of building permit fee for each separate review of same construction plan. Administrative Fee for Processing State of Oregon Master Plans or Plans Reviewed by a Third Party Plans Examiner 10% of building permit fee with a minimum fee of $200.00 Expedited Plan Review $150.00 charged per hour, in addition to the calculated plan review fee. Inspection Fees: Inspections Outside Normal Hours $150 charged per hour (minimum 2 hours). Re- Inspections (for which no fee specifically indicated) $100 charged per hour (minimum 1 hour). Inspections (for which no fee specifically indicated) $100 charged per hour (minimum 1 hour). Other Fees: of permit fee, fee is in addition to the permit fee with a minimum fee of $300.00. Issued for 30 days, $100 for each 30 day reissue. Investigation Fee Temporary Certificate of Occupancy 150% $300.00 Change of Occupancy $100.00 charged per hour, minimum fee of two hours. Stand Alone Residential Sprinkler System Fees: Square Footage Fee 0 to 2,000 square feet $450.00 2,001 to 3,600 square feet $600.00 3,601 to 7,200 square feet $750.00 7,200 square feet and above $900.00 Exhibit "A" Page 4 of 5 113 City of Woodburn, Building Division Miscellaneous Fees Effective August 11, 2011 (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Exhibit "A" Page 5 of 5 114 Manufactured Dwelling and Cabana Installation Permits: A single fee is charged for the set -up of manufactured homes. This single fee includes the concrete slab, runners, or foundations when they comply with the prescriptive requirements of the Oregon Manufactured Dwelling standard, electrical feeder and plumbing connections, and all cross -over connections. Decks, other accessory structures, and foundations that do not comply with the prescriptive requirements of the Oregon Manufactured Dwelling and Park Specialty Code, utility connections beyond 30 lineal feet, new electrical services or additional branch circuits, new plumbing, and other such items that fall under the building code require separate permits. Installation Permit $370.00 Earthquake- and wind - resistant bracing $130.00 systems Reinspections $130.00 Camp and Park Permits: The fees for each permit issued for the construction, addition, or alteration of a manufactured dwelling park, recreational vehicle park, or organizational camp developed shall be calculated using the valuation of the work and the most recently adopted commercial building permit valuation table. Plan Review 100% of permit fee. Excavation and Grading Permits: The fee for an excavation and grading permit shall be calculated using the valuation of the work and the most recently adopted commercial building permit valuation table. Plan Review 100% of permit fee. Demolition Permits: _ The fee for a demolition permit shall be calculated using the valuation of the work and the most recently adopted building permit valuation table. Plan Review 100% of permit fee. Residential Roof -Top Solar System Fees: Fee Prescriptive system $300.00 Flat fee, includes one inspection. Engineered system Building Permit Fee is based on the valuation using the residential building permit valuation table. Building Permit Fee 100% of permit fee calculated using the valuation of the project, with a minimum fee of $300.00. of permit fee for plan review. Plan Review Fee 100% (The fees listed above do not include the State of Oregon permit fee surcharge or the statewide code development, training, and monitoring fee for manufactured dwellings or the school district construction excise tax) Exhibit "A" Page 5 of 5 114 I oOBuR July 25, 2011 TO: Honorable Mayor and City Council through City Administrator FROM: Jim Hendryx, Director of Economic & Development Services SUBJECT: Clarifying the Definition of Caliper for Trees Legislative Amendment 2011 -01 (Woodburn Development Ordinance) RECOMMENDATION: Modify the proposed definition of "caliper" to remove the reference to large trees. Since significant trees are defined separately and without respect to caliper, this will clarify the method of tree measurement. Direct staff to return with an ordinance amending sections 1, 4 & 5 of the Woodburn Development Ordinance, as approved by the City Council. BACKGROUND: The Mayor and City Council appointed a focus group of citizens to review the Woodburn Development Ordinance and recommend improvements for consideration by the Planning Commission and City Council. The Planning Commission held a series of workshops on the proposal, conducted a public hearing, and forwarded Sections 1, 4 & 5 to the City Council with a recommendation of approval. The City Council conducted a workshop on June 27, 2011 and a public hearing on July 11, 2011, conceptually approving a package of amendments and directing staff to return with a modification to the ordinance regarding tree measurement methods. Prior to proceeding with the ordinance, Council requested staff to further evaluate the definition of "caliper ". A considerable diversity exists in how tree size is measured. Some jurisdictions (Sherwood, Eugene, Albany, Keizer, and Newberg) do not define caliper. In the jurisdictions that regulate trees by caliper, it is measured at 6 inches (Anchorage), 12 inches (Beaverton, Salem), or Agenda Item Review: City Administrator _X_ City Attorney _X_ Finance 115 Honorable Mayor and City Council July 25, 2011 Page 2 at unspecified height (Medford, Lake Oswego). A local tree nursery measures the caliper at 6 inches above ground, as does a local landscape supplier. Tigard adopted the American Standard for Nursery Stock (American National Standards Institute Specification Z60.1), which provides that "Caliper measurement of the trunk shall be taken six inches above the ground up to and including four -inch caliper size. If the caliper, at six inches above the ground, exceeds four inches, the caliper should be measured at 12 inches above the ground." Staff recommends modifying the proposed definition of caliper to remove reference to large trees. Since significant trees are defined separately and without respect to caliper, this will not affect the significant tree provisions of the WDO. Caliper: The diameter of a tree measured 6 inches above ground level for trees up to 4 inches in diameter, or 12 inches above the ground for trees 4 inches or more in diameter. Financial Impacts: Not applicable. 116