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08-08-2011 AgendaCITY OF WOODBURN CITY COUNCIL AGENDA AUGUST 8, 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. 12th Annual Walt's Run 5k Family Fun Run will be held August 13, 2011. This annual event runs from Centennial Park through historic downtown Woodburn and back to the park for the finish. Register online or the day of the race. All proceeds benefit Woodburn Proud Inc. Registration opens at 7:00 am, warm up with Wellsprings at 7:45 am and the race starts at 8:00 am. B. The End of Summer Block Party will be held Friday, August 26; 5:00 pm to 9:00 pm. Celebrate the end of summer with a block party on the south lawn of the Aquatic Center (near tennis courts). We supply the hamburgers / hotdogs and you bring the rest chips / salads / cookies / drinks. Free BBQ & Games on the lawn from 5:00 pm to 6:30 pm. At the Aquatic Center half -price swimming from 6:30 pm to 8:00 pm. Appointments A. Claudio Lima - Planning Commission 4. COMMUNITY /GOVERNMENT ORGANIZATIONS A. Chamber of Commerce B. Woodburn School District C. Woodburn Unidos 1 "Habra interhretes aisl)onibfes jara aqudfas jvrsonas que no �abfan Ing(es, I)revio amer6o. Comnnitl ese Of (5 98o- 1485... August 8, 2011 Council Agenda Page i 5. PROCLAMATIONS /PRESENTATIONS Proclamations None. Presentations A. Certificate of Appreciation - Woodburn Police Department 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 25, 2011 2 Recommended Action Approve the minutes. B. Recreation and Park Board minutes of July 12, 2011 Recommended Action Accept the minutes. 7 C. Public Library Board minutes of July 13, 2011 12 Recommended Action Accept the minutes. D. Application for 2011 Byrne JAG Funding Grant 15 Recommended Action Information only to City Council regarding staff's application for pre- approved Federal funding under the 2011 Byrne Memorial JAG Grant. 9. TABLED BUSINESS None. 10. PUBLIC HEARINGS None. 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. August 8, 2011 Council Agenda Page ii A. A Resolution Authorizing the Execution of an Amendment to the 17 Cable Management Access Agreement and Authorizing the City Administrator to Sign Said Amendment Recommended Action: Adopt the resolution. B. Consideration of FY 2011/12 Financial Plan 33 Recommended Action Adopt the attached FY 2011/12 Financial Plan via a motion. C. Award of Construction Contract; 88 Aquatic Center Replastering and Repair Recommended Action: That the City Council Award the construction contract for Aquatic Center Pool Replastering and Repair in the amount of $139,512.00 to Anderson Poolworks. D. Acceptance of Public Utility Easement; 90 Driftwood Mobile Home Park Recommended Action That Council accept a Public Utility Easement for City water facilities granted by Western Sage Management Inc., property owners of 612 North Cascade Drive, Woodburn, OR 97071, known as Driftwood Mobile Home Park (Tax Lots 052W 12DD00200, 052W 12DD00400, 052W 12DD00500, and 052W12DD00600). E. Award of Contract for Biosolids Handling Services 97 Recommended Action The City Council, as Local Contract Review Board, delegate authority to the City Administrator to accept the best proposal submitted via a Request -for- Proposals (RFP) process and award a five -year contract for the removal of biosolids from the Wastewater Treatment Plant Facultative Sludge Lagoons. 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. I2❑TO 13. CITY ADMINISTRATOR'S REPORT 14. MAYOR AND COUNCIL REPORTS 15. ADJOURNMENT August 8, 2011 Council Agenda Page iii WT ODBURN August 3, 2011 TO: City Council FROM: Kathy Figley, Mays SUBJECT: Planning Commission Appointment The following appointment is made, subject to the approval of the Council. Please forward any adverse comments to me prior to the Council meeting on Monday, August 8, 2011. No reply is required if you approve of my decision. PLANNING COMMISSION New appointment o Claudio Lima 1 COUNCIL MEETING MINUTES JULY 25, 2011 0:00 DATE COUNCIL CHAMBERS, CITY HALL, CIT Y OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JULY 25, 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, Police Captain Garrett, Recorder Shearer. 0:00 ANNOUNCEMENTS A. Woodburn Fiesta Mexicana 0:00 COMMUNITY /GOVERNMENT REPORTS A. Woodburn Chamber of Commerce — Elida Sifuentes spoke regarding the Woodburn Fiesta organizers. Don Judson, Executive Director discussed the Chamber's role in organizing this year's Fiesta. B. Woodburn Unidos — Erubio Valladares, President, updated Council on the activities of the Woodburn Downtown Unidos, especially their efforts to conduct meetings bilingually. 0:00 PROCLAMATIONS A. National Night Out 2011 0:13 PRESENTATIONS A. Chamber of Commerce — Tourism Report: Kelly Lemmings, Tourism Coordinator for Woodburn Area Tourism presented the Tourism Work Plan for 2011 -2012 (appended to agenda packet). B. Budget Policies & Reduction Strategy — City Administrator Derickson gave a presentation on a proposed Budget Policy and Reduction Strategy to address potential funding challenges. Administrator Derickson reviewed the recent fiscal history of the City and outlined some of the challenges he is expecting in the coming years. Councilor Cox had a question regarding street maintenance funding and the decline of General Fund support for streets. Administrator Derickson discussed the challenges of street funding and the limitations on use of Street SDC funds. Page 1 - Council Meeting Minutes, July 25, 2011 2 COUNCIL MEETING MINUTES JULY 25, 2011 Council discussed the purpose of the General Fund contingency (currently set at 10% of General Fund expenditures). Councilor Cox questioned under what circumstances the contingency would be used and how it would be replenished. Councilor Schmidt is supportive of the contingency and would be opposed to a reduction of the contingency. Mayor Figley clarified that contingency would be used for one time expenses or opportunities and the expectation is that it would be replenished in the next budget year. Administrator Derickson discussed the impacts of wage and benefit cost increases. To address the escalation of these costs, policies regarding wages & benefits have been developed. Councilor Cox pointed out that significant changes in benefit levels would need to be bargained with the unions; Administrator Derickson agreed. Councilor Pugh commended staff on the foresight and effort that went into developing this proposal. Councilor McCallum agreed that this supports the goal of transparency for government actions. Council also discussed the prioritization of Programs and Services relative to reduction strategies. All agreed that prioritization is important for planning purposes but recognize cuts may come from a combination of programs & services. Mayor Figley pointed out that simply having the discussion is valuable. Councilors Schmidt and Cox felt that across the board cuts are more fair than prioritized cuts. Councilor Morris pointed out that the City's prioritization of programs and services may not align with the public's priorities. Councilor McCallum asserts that this works as a decision framework, rather than a final decision. 1:36 BUSINESS FROM THE PUBLIC Garry LaPoint of 850 Lawson Ave, (AM/PM) has a complaint regarding the .O1 /gallon gasoline tax. He feels that it places him at a competitive disadvantage. He also had concern about access exiting /entering I -5. He also is not happy with the Front Street improvements. In addition, he would like the school zones to be consistent. Finally, he had a suggestion regarding a fee for street funding (appended to agenda packet). 1:59 CONSENT AGENDA A. Approve Woodburn City Council minutes of July 11, 2011, B. Accept Woodburn Planning Commission minutes of June 23, 2011, and C. Accept the crime statistics report for June 2011. McCallum /Cox... adopt the Consent Agenda. The motion passed unanimously. Page 2 - Council Meeting Minutes, July 25, 2011 I COUNCIL MEETING MINUTES JULY 25, 2011 2:00 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 McCallum/Lonergan... remove Council Bill No. 2870 from the table. Motion passed unanimously. Public Works Director Brown provided as staff report regarding the status of the agreement between Wilbur -Ellis and Union Pacific. City Administrator Derickson discussed the agreement between the City and Wilbur -Ellis for fencing once the closure was complete. Councilor Cox is opposed to this Resolution because Wilbur -Ellis had indicated it would relocate the business if the crossing was closed and Council wished to preserve the business within the community. He feels that the City has invested a significant amount of staff time and resources and does not feel Council should "bless" this action. He also feels that additional investments of public funds (approximately $18,000) necessary to complete the closure is not appropriate and does not provide a public benefit. Councilor McCallum asked what the ramifications of a no vote would be. He also questioned what Union Pacific's motives for the closure are. Director Brown replied that there were many motives in play, including a move to increase train speeds through Woodburn and the associated safety concerns. He also stated that if the City takes a position opposing the closure, the closure would move into a contested case process. Councilor Cox suggested that the City take a neutral position, neither opposed or in favor of closure. Councilor Schmidt reiterated that the City's involvement in this issue was on behalf of Wilbur -Ellis and does not support further action by the City that will incur additional costs of staff time or funds. Public Works Director Brown clarified the sequence of events and the standing of the parties involved. City Administrator Derickson added that it was the City's threat of contesting the closure that lead to the agreement between Wilbur -Ellis & Union Pacific that will allow Wilbur -Ellis to continue to operate in Woodburn after the Mill Street crossing closure. Staff also clarified the City and ODOT Rail roles in the closure. Council & staff discussed the options for the resolution and the existing closure order objection. Councilor Morris also is opposed to expending more funds for this closure. Council also discussed the future Hardcastle realignment project and how it fits into this issue. Council also ensured that there were no adverse unintended consequences that would occur should this measure fail. Page 3 - Council Meeting Minutes, July 25, 2011 W COUNCIL MEETING MINUTES JULY 25, 2011 On roll call vote for final passage, the bill failed with all Councilors voting against the resolution. McCallum/Pugh... notify ODOT Rail and all other stakeholders that the City is withdrawing its opposition to the Mill Street closure order. The motion passed unanimously. 2:40 COUNCIL BILL NO. 2873 — (SECOND READING) 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 Recorder Shearer re -read the second reading of the bill by title only since there were no objections from the Council. On roll call vote for final passage, the vote was 5 -1 in favor, with Councilor Schmidt voting no. Mayor Figley declared Council Bill No. 2873 duly passed. 2:42 CLARIFYING THE DEFINITION OF CALIPER FOR TREES LEGISLATIVE AMENDMENT 2011 -01 (WOODBURN DEVELOPMENT ORDINANCE) Councilor Cox clarified the applicability of this action to significant trees. Cox/McCallum... direct staff to return with an ordinance amending sections 1.4 & 5 of the Woodburn Development Ordinance, as previously approved by the City Council making the staff suggested change to the definition of "caliper". Motion passed unanimously. 2:45 CITY ADMINISTRATOR'S REPORT • National Night Out: Police staff will accompany Council members to attend National Night Out events if Council wishes. • Another E -Blurb will be issued soon • Rotary fundraiser for the Fall Classic at the Woodburn Dragstrip September 17/18. Tickets are available from the City Administrator 2:47 MAYOR AND COUNCIL REPORTS • Councilor McCallum would like to congratulate Councilor Morris on his election to Chair of the Woodburn School Board. Page 4 - Council Meeting Minutes, July 25, 2011 I COUNCIL MEETING MINUTES JULY 25, 2011 2:49 ADJOURNMENT Schmidt/Lonergan... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 9:50 p.m. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Christina M. Shearer, Recorder City of Woodburn, Oregon Page 5 - Council Meeting Minutes, July 25, 2011 City of Woodburn Recreation and Park Board Minutes July 12, 2011 • 6:30 p.m. 1. CALL TO ORDER The meeting and was called to order at 6:30 p.m. 2. ROLL CALL Position I Zandi Cox, Member (12/13) Absent Position II (Student) Claudia Urias- Guerrero Absent Position III Joseph Nicoletti, Board Secretary (12/13) Present Position IV Rosetta Wangerin, Board Chair (12/13) Present Position V Bruce Thomas, Member (12/13) Present Position VI Cheryl Shepherd, Member (12/11) Absent Position VII Tony Waite Present 3. APPROVAL OF MINUTES FROM April 12, 2011 Bruce Thomas /Tony Waite - Motion to accept the amended April 12, 2011 minutes as written. The motion passed unanimously. 4. BUSINESS FROM AUDIENCE None. 5. OLD BUSINESS None. 6. NEW BUSINESS INTRODUCTION OF KRISTIN GRAYBEAL. AOUATICS PROGRAM SUPERVISOR Jim introduced Kristin Graybeal, Aquatic Program Supervisor. Jim explained the extensive hiring process the City conducted, which included regionally promoting the position through Park and Recreation Association websites and other organizations. A significant number of applicants were from out of state and most applicants had the traditional aquatics background. The interview committee desired a person with strong community relations, marketing and communication skills; a dynamic leader, someone who is extremely organized, and also someone who has a clear vision of where the Aquatic Center needs to go and how to get it there. The position closed on May 15 and interviews were conducted on May 26. The process was extensive and started with a brief initial interview, a writing assignment, presentation, in -water activities and a longer final interview. Kristin was the panel's clear choice. She began work on July 5, and is now extremely busy getting up to speed on the very complicated process of operating the Center and its many programs. A smooth transition is planned in which the interim supervisor, Kennan Kuffel is taking the lead role through July and then stepping back to allow Kristin to take the lead in August. Swim Essentials consulting contract ends at the end of August. Page 1 of 5 7 City of Woodburn Recreation and Park Board Minutes July 12, 2011 • 6:30 p.m. WIOOD U N JUNE PARK TOUR RE -CAP Jim commented that the June 7 park tour was canceled, since Tony Waite was the only Board member to show up. Joseph asked why this item was on the agenda if the tour didn't happen. Jim replied that Rosetta asked that it be put back on the agenda to see if the Board was still interested in doing the tour. Discussion took place and Jim suggested Wednesday, July 27, 2011 at 5:30pm as a tentative date. Jim will communicate via email with the absent board members to see if this date will work for them. AQUATIC CENTER FINANCIALS Jim reported that the Aquatic Center project continues to move forward on schedule. Jim presented financial charts comparing 2010 — 2011 expenditures and revenues for the period of January through May. Jim pointed out that expenditures were significantly down during these months. Revenue was also down until May. This might be attributed to the difficult transition of the project and the many changes that have taken place and possibly also continued weakness in the local economy. He presented a chart comparing revenue from the first week of summer to the same period last year. Revenue this year was $8,067, as compared to $3,882 last year. He stated that this number might be a bit skewed, as our new seasonal pass structure will result in high pass sales at the beginning of each season, and lower pass sales throughout the rest of the term. He stated that we have set a 2011 summer revenue goal of $80,000 - $100,000. Revenue for last summer was $55,000. A thermometer posting weekly updates is posted in the staff office, which will hopefully help staff get on board with the goal. Joseph asked if the charts could show a calculated average. Jim shared that he will provide a weekly revenue comparison throughout the summer that will show a cumulative total. Bruce asked if the expenditure numbers reflected labor, heat, electricity and consultant fees. Jim stated that consultant fees were not included but all other operational cost were. While June was not on the chart, he explained that it was going to be a large expenditure month with the lobby improvements, stocking the pool store, staff uniforms, summer supplies, and an increase to summer staffing levels. Even with all of these additional expenses, they would not exceed the adopted budget for 2010 -2011. Jim distributed the Aquatics summer brochure to the Board and explained that they were distributed to the surrounding communities, schools and businesses. He encouraged the Board to visit the Aquatic Center and see first -hand the new look of the lobby project. He shared that the new website was up and has the look and feel of the summer brochure. Jim refreshed the Board on the pool temperature issue, where the pool temperature is now between 83.5 — 83.7 degrees and seems to be a pretty good compromise for all users. Jim reported that they opened bids last week for the pool tile cleaning and repair, replacing the strip drains in the deck and re- plastering the pool and replacing the old under -water lights Page 2 of 5 9 City of Woodburn Recreation and Park Board Minutes July 12, 2011 • 6:30 p.m. [ ][ jO ODBUT 0 9 a c p RI-f. with new LED lights. The pool will be closed 4 weeks for this project which will ensure the plaster gets dry. DIVISION REPORTS Aquatics — Kristin Graybeal Kristin reported that she is currently developing a staff manual that will be used in training staff and staff will be able to use it for reference. Next week, she is meeting with a Radio Disney representative for a potential special event next year. She will get sponsorships to off -set the cost of this event. Kristen stated that Aqua Zumba has a great turnout and is getting really popular. Kristin shared that the Woodburn Rotary Club gave $750.00 to the Aquatic Center. She will be meeting with them to see what exactly they would like to sponsor. She shared that she is asking the Rotary Club to volunteer in September to help clean after the re- plastering project to ready the Aquatic Center for re- opening. Recreation — Stu Spence Youth Sports — Complete agreement to partner with Woodburn Athletic Futbol League, with them doing the logistics, scheduling and referees and us taking the registrations and supplying the uniforms. Last year over 325 kids played. Rosetta mentioned that the referees were really kind to the young players. Adult Sports — Adult softball is canceled. Stu mentioned that he heard the teams went to Mt. Angel because they could drink beer. Joseph asked if there was a loss of revenue and Stu said yes. Bruce asked if he had read the article in the Statesman Journal where softball tournaments brought in huge revenue opportunities. Discussion took place on the use of alcohol in Woodburn parks. Fourth of July — This year's event July 4 th at Centennial Park was a success. Every year it just gets better. Revenue was up in sponsorships and expenditures were down. Tony made a suggestion of having more speakers next year and what the possibility to move the event to the nearest weekend day. Discussion took place on the use of speakers in large crowds. Youth volunteers ran all the games and activities and did a great job this year. Stu stated that the 2 food vendors were perfect for this event. Boys and Girls Club — They are now formalizing the Unit Board for Woodburn with Don Judson as the chair. There are 4 vacant spots that need to be filled. Strategic planning meeting scheduled for July 20 at City Hall. Rosetta asked if there were any partnerships with Salvation Army. P.A.L. Mentoring —This program continues with a new grant that began in May. Lorena, Program Coordinator is busy improving the program and recruiting new mentors. Summer Day Camp_ Staff is doing a great job managing the program including budget, program and field trips. There has been an average of 35 kids per week with 6 staff on a rotating schedule. Some field trips have included ice skating, hiking at Silver Falls and the Page 3 of 5 I City of Woodburn Recreation and Park Board Minutes July 12, 2011 • 6:30 p.m. W100D$Uk N Kroc Center. Jim mentioned that quite a few 75% scholarships were approved for this program. Y.A.B. — a $300 Scholarship was awarded at the end of the year to Dulce Chavez. Summer projects include Fiesta Mexicana, 4 1h of July and Walt's Run. Tennis — Over 20 kids participate in Tennis Camp each year. Upcoming Events — Woodburn Proud, August 18 at Centennial Park End of Summer Block Party, August 26 at Aquatic Center parking lot Fiesta Mexicana — August 5, 6 and 7 Stu passed out senior discount tickets for Friday, August 5 Senior Day for the Fiesta Mexicana bringing the entrance fee to $3.00 for seniors. He stated that these tickets were available at PGE and the Woodburn Chamber of Commerce. Jim commented that Kristin is doing a great job balancing her commitment to the Fiesta and her new position with the City. Rosetta shared that Love Inc. was signing people up to help at the Fiesta Mexicana. Rosetta stated that Love in the name of Christ is a group of citizens helping to organize Woodburn churches so that each church could be responsible in supporting a different need within the community. Wyffels Park Sign Project Stu mentioned that on June 11 the Emmanuel Lutheran Church removed the tall grass in the sign area, re- install the newly finished sign and placed bark around it. Tony asked about whether cars could park down there, which opened discussion on parking and the out dated play equipment. G.R.E.A.T. Camp — Gang Resistance Education and Training, July 5 — 8 th at Valor Middle School in which 30 kids benefited from the Woodburn Police giving this classroom educational experience with the help of recreation staff doing fun activities during breaks. The kids also went on a few field trips and completed a service project. Stu shared that Elizabeth Waite solicited donations which funded an end of training barbeque where it was neat to see local law enforcement socially mingling with the youth. The program pre and post tests were powerful this year. Rosetta asked Jeannie Mae, who came late to the meeting, if she had any issues she would like to discuss. She did not. Parks and Facilities — Jim Row Centennial Park Jim reported that the park is being well used and the only issue now is getting the contractor to finish some closeout work. He reported that city maintenance staff has been busy prepping all four baseball fields for an up- coming baseball tournament. The dog park seems Page 4 of 5 10 City of Woodburn Recreation and Park Board Minutes July 12, 2011 • 6:30 p.m. W'00D$Uk N to stay busy. Rosetta asked about the drainage at Centennial Park and Jim refreshed the Board that field 1 was regarded in attempt to resolve long standing issues. Mill Creek Greenway Project Jim reported that as soon as the ground is dry enough, construction of the Greenway Trail project will be completed. An Eagle Scout has been building the trail signs for a project credit and when complete he will work with maintenance to get the signs installed. Jim is hopeful that this project will be complete by September. Bruce asked about the chips in the gravel and Jim replied that the contractor would fix that. Joseph asked which side the trail was being constructed and Jim replied the west side. Bruce asked exactly where the platform was being placed and Jim clarified the trail will be on the near north side where there is a natural open clearing. Bruce asked if the grass would be kept cut down between the pond and the gravel once the trail was complete. Jim replied that park maintenance struggles when the ground is wet but will get mowed whenever the ground is dry enough to get the mowers in. Wyffles Park Jim quickly updated the Board on the grant boundary issue. Public Works has conducted extensive research, and discovered records from as far back as 1906, which is helping us resolve the issue with the State and National Park Service. He has been busy working on the Thorn Street vacation issue and is currently awaiting a response. 7. FUTURE BOARD BUSINESS None. 8. BOARD COMMENTS Bruce asked if the grass was being mowed in the Centennial Park dog area and is maintenance keeping the dog bag dispenser filled because it seems to empty quite often. Jim answered that maintenance is working hard to keep the grass cut given their staffing limitations and the workload this time of year. Jim stated that he believes the dog waste bag dispenser is checked twice per week. 9. Bruce asked about the 2011 -2012 Budget and if there was money for extra projects. Jim responded that the budget has been adopted by the Council, and each department has now been asked to prepare for the eventuality that mid -year cuts might need to be made. 10. ADJOURNMENT Adj ournment was 8:OOpm Joseph Nicoletti, Board Secretary Paulette Zastoupil, Recording Secretary Date Date Page 5 of 5 11 - City of Woodburn OODBUR Public Library Board Minutes Woodburn ! or c o r p o r a i e d r 8 S 9 July 13, 2011 • 7:00 p.m. PUBLIC LIBRARY 1. CALL TO ORDER The meeting and was called to order at 7:00 p.m. Nancy Kirksey; President was absent, JD Mitchoff, Position I, conducted the meeting. 2. ROLL CALL Position I J.D. Mitchoff (12/13) Present Position II Kristen Matthews (12/13) Present Position III Nancy Kirksey, President (12/13) Absent Position IV Neal Hawes, Vice - President (12/11) Absent Position V Willis Grafe (12/13) Present Position VI Phyllis McKean (12/12) Present Position VII vacant (Student Member) 3. MINUTES —April 13, 2011 Willis Grafe/Phyllis McKean - Motion to accept the minutes as written and seconded. The motion passed unanimously. 4. BUSINESS FROM THE PUBLIC None. 5. OLD BUSINESS Sunday Schedule Variation John stated that the City Administrator gave permission for the Library to stay open on Sundays during the summer on a trial basis as it would have no fiscal impact. John then gave a snapshot of attendance for the first 5 weeks of the trial period; June 12: 240 patrons; June 19: 324 patrons; June 26: 273 patrons; July 3: 207patrons; and July 10: 232 patrons; for a total of 1,276 patrons. John shared that this was the first time that the Library has been open on Sundays during the summer and the numbers show that people seem to like it. 6. BOARD REPORT Friends of the Library Report — John Hunter John reported that the "Book Shop" corner continues to bring in revenue of $100 or more a month. Music in the Park was completely funded by the community this year, with major sponsorships from the Woodburn Area Association for Senior Programs, Wal -Mart and the Friends of the Library. John shared that attendance for Music in the Park has been good; July 5 th had 225 attendees and 12 market vendors. The July 12 concert moved to the City Hall Council Chambers due to weather but still had 85 attendees and 5 market vendors. John stated that sound guys and band worked well together bringing the sound down to indoor levels and the night went forward seamlessly. The July 19 concert, featuring Abby Road Live!, a Beatles cover band from Georgia, promises to be a crowd pleaser. Willis commented that people really seemed to Page 1 of 3 12 enjoy themselves at the July 12 JT & The Tourists concert, even though it had to be moved inside. 7. NEW BUSINESS Coffee Shop Concession — John Hunter While hosting the Chamber Greeters and pitching for Music in the Park sponsorships, someone asked "if money was no object, what would you add to the library ?" and John replied "a coffee shop." John shared that a the city administrator was in attendance at the event, heard the idea, and liked it. Consequently, John is now officially moving forward on the coffee shop project. Setting up space for a coffee shop within the library and attracting a vendor to lease the space are the major components of the project. The initial idea of housing a coffee shop on the loading dock would require substantial renovation costs, so John is now looking at housing the coffee shop in the existing staff lounge in the basement of the Carnegie building. This room already has a kitchen and access to the street, so it would be a more "ready -to -go space ". When a decision on the appropriate space is final, John will put out a Request for Proposal for a coffee shop concessionaire. JD asked if it would be a sit -down space or a coffee counter. John replied that he thought they would have enough space for patrons to sit at bistro tables. He envisions an inviting space where people could buy food or bring their own sack lunch and buy a drink, sit, read a book/paper and enjoy. New Website — John Hunter John displayed for the Board the library's new website, which also features the library's new logo. John shared that the library staff were looking for a new logo that would resonate with the younger generation. Patrons have made comments that the abstract design resembles a globe, a camera lens, a flower, and an atom circling a molecule, all of which are apt symbols for a library. The graphic designer who created the logo meant the icon to represent diverse thoughts coming together to form a cohesive whole or community. The different colors also represent the diversity of Woodburn. John explained to the Board how difficult the old website was to update using necessary HTML programming. Now, the library has switched to a free service offered through the Oregon State Library called PLINKIT (Public Library Internet Kit). John shared how easy it is now to build pages and update information on this new system. He gave a recent example: when the late decision was made to move the Tuesday night outdoor concert to city hall, it took just a couple of minutes to update the website with the new concert location. PLINKIT also makes it easy for staff to update program activities, access the library catalog, link to local news items, post book recommendations, library forms and upload short library activity videos for patrons to enjoy. Finally, John shared that new software has been installed, which makes it possible for patrons to print wirelessly from their laptop computers using library printers. MANAGER REPORTS April — June 2011 Statistics — John Hunter John gave the Library Board printouts of April, May and June 2011 statistics. John highlighted three areas: circulation was up for the quarter and also up 4.6 percent for the fiscal year; John noted that even though 5,005 items were added to the collection versus last year's 5,322 items, circulation still increased, thus showing that library staff are choosing popular items; total circulation for the year was 164,060, excluding items downloaded from Library2Go. John also shared that the Adult Services desk has been busy helping people find more books and answering questions from folks using e -book Page 2 of 3 13 readers, like the Kindle and the Nook. Finally, John emphasized that circulation is very busy with huge annual increases in materials coming and going on the CCRLS courier. Phyllis shared that she has read in the paper and heard from other people how well the summer reading program is this year. John stated that the Summer Reading Program had 451 kids signed up to date, has had great attendance at programs, and tends to bring in other people to the library. The Adult Summer Reading Program has also been successful with 102 participants, up from 85 last year. Sandy and Christine have done an excellent job of planning various activities for this program. Everyone seemed to enjoy the activity of coffee tasting and the staff is looking forward to the chocolate tasting activity. Phyllis asked if the volunteer was still delivery books to homebound patrons. John replied that Audrey Pister is still volunteering, and services 20 patrons signed up for the program, with some of them reading 20 books a month. John complimented Christine on her talent for reader's advisory and selecting materials for the homebound patrons. Willis asked if the Friends of the Library was still selling books through the discard company. John said that Judy was still using One Sold Tales even though the company is struggling keeping their accounts current. But, if the company ultimately goes out of business, Judy is prepared to switch to Better World Books. This company has a web - based portal that will give Judy the ability to scan a book into their system and the system immediately lets her know whether or not to send the book. 8. FUTURE BOARD BUSINESS Next scheduled meeting is October 11, 2011 9. ADJOURNMENT JD Mitchoff/Phyllis McKean — Motion to adjourn meeting and seconded at 7:40pm. Paulette Zastoupil, Recording Secretary Date Page 3 of 3 14 I oOBuR August 8, 2011 TO: Mayor and City Council through City Administrator FROM: Scott D. Russell, Chief of Police SUBJECT: Application for 2011 Byrne JAG Funding Grant RECOMMENDATION Information only to City Council regarding staff's application for pre- approved Federal funding under the 2011 Byrne Memorial JAG Grant. BACKGROUND For many years the Woodburn Police Department has obtained grant funding through the annual Byrne Memorial Justice Assistance Grant Program through the United States Department of Justice to obtain equipment and services that would not otherwise be available through normal budget resources. This Grant is pre - allocated by the Department of Justice with set funding limits. DISCUSSION On July 21, 2011 the Woodburn Police Department made application for funding through the 2011 Byrne Memorial JAG grant in the amount of $11,570.00. This is a non -match required grant that cannot supplant local funds. It is limited to specific equipment and service areas in law enforcement as permitted by the Federal Government. Notice and opportunity for comment must be given to the local governing body and the public at large during the application process, and that is the primary purpose of this staff report. If approved by the USDOJ funds from this grant will be utilized to purchase additional modules for the Police Records Management System that is currently being implemented. The modules will assist officers in tracking and investigating drug traffickers, drug houses, and drug trafficking organizations as well as providing analytical data for crime analysis. Agenda Item Review: City Administrator _x_ City Attorney _x_ Finance 15 Honorable Mayor and City Council August 8, 2011 Page 2 FINANCIAL IMPACT The grant will provide $11,570.00 in Federal funding, there is no required local match. 16 I oOBuR August 8, 2011 TO: Honorable Mayor and Council through City Administrator FROM: Ignacio Palacios, Finance Director SUBJECT: Amendment to Woodburn Cable Access Television (WCAT) Agreement RECOMMENDATION Adopt the attached resolution authorizing the execution of an Amendment to the Cable Access Management Agreement. BACKGROUND The City of Woodburn has a longstanding partnership with WCAT to provide cable public access to the City's residents. In 1995 the City first entered into an agreement with WCAT to manage, and administer public, educational and governmental access to the cable television channels allocated for this purpose by each cable operator, and to manage and administer the television production studio(s) and equipment provided for public, education and governmental use in production of video programs. The amounts turned over to WCAT for the cable access management have not been reviewed since 1995 and have made it difficult for WCAT to properly budget and manage capital needs. DISCUSSION As part of the 2011 -2012 Budget process, the City's Budget Committee approved and forwarded a budget to the City Council that included an increase of $6,185, annually, to WCAT. This increased payment to WCAT was adopted by the City Council as part of the 2011 -2012 Budget and will be paid from cable television franchise fee revenue. The increase brings the total annual amount of the City's payment to WCAT to $18,000. The attached resolution authorizes an Amendment to Cable Access Management Agreement in order to memorialize the change. More Agenda Item Review: City Administrator _x City Attorney _x Finance 17 Honorable Mayor and City Council August 8, 2011 Page 2 specifically, as you can see from examining the resolution and attachments, Section 17 has been modified to reflect the current practice. FINANCIAL IMPACT The increase of $6,185 was approved and adopted as part of the 2011-2012 Budget. This increases the annual contribution to WCAT to $18,000, which comes from cable television franchise fees. ATTACHMENTS: Resolution 2002 18 COUNCIL BILL NO. 2874 RESOLUTION NO. 2002 A RESOLUTION AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE CABLE MANAGEMENT ACCESS AGREEMENT AND AUTHORIZING THE CITY ADMINISTRATOR TO SIGN SAID AMENDMENT WHEREAS, the City originally entered into a Cable Management Access Agreement ( "the Agreement ") with Woodburn Cable Access Television Incorporated, ( "WCAT ") an Oregon nonprofit corporation in 1995, and WHEREAS, the Agreement has been ongoing and has worked well since its date of original execution, and WHEREAS, WCAT's function is educational and government access allocated for these purposes, and to manage and administer public, to cable television channels that are WHEREAS, the City Council recognizes the community service provided by WCAT and WHEREAS, the City Council adopted as part of the FY 2011-2012 Budget an increase of $6,185, annually, to WCAT, which will be paid from the Cable Franchise Management Fund, and WHEREAS, this approved increase will bring the total annual amount of the City's payment to WCAT from the Cable Franchise Management Fund to $18,000, and WHEREAS, it is desirable for the parties to the Agreement to execute an amendment to the Agreement to memorialize this change, NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. That the City Administrator is authorized to execute Amendment to Cable Access Management Agreement with WCAT. Section 2. That a copy of said Amendment is affixed hereto as Attachment "A" and, by this reference, incorporated herein. Page 1 - COUNCIL BILL NO. 2874 RESOLUTION NO. 2002 19 Approved as to form: City Attorney Approved: 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. 2874 RESOLUTION NO. 2002 Date Kathryn Figley, Mayor 20 Attachment "A" Page 1 of 12 AMENDMENT TO CABLE ACCESS MANAGEMENT AGREEMENT This Amendment is entered into and is effective on the dates written below by and between the City of Woodburn ( "the City "), an Oregon municipal corporation, and Woodburn Cable Access Television Incorporated ( "WCAT"), an Oregon nonprofit corporation. WHEREAS, the parties entered into a Cable Access Management Agreement, attached hereto as Exhibit "A" in 1995; and WHEREAS, WCAT's function is to manage and administer public, educational and government access to cable television channels that are allocated for these purposes; and WHEREAS, the City recognizes the community service provided by WCAT; and WHEREAS, the City adopted as part of the FY 2011 -2012 Budget an increase of $6,185, annually, to WCAT, which will be paid from the Cable Franchise Management Fund; and WHEREAS, this approved increase will bring the total annual amount of the City's payment to WCAT from the Cable Franchise Management Fund to $18,000; and WHEREAS, it is desirable for the parties to the Agreement to execute an amendment to the Agreement to memorialize this change; NOW, THEREFORE, the parties agree as follows: 1. The Cable Access Management Agreement is amended to add a new Section 17, which shall provide: 17. PAYMENTS TO WCAT The City shall pay $18,000 to WCAT for FY 2011 -2012 in quarterly installments from the Cable Franchise Management Fund. Annual payments of $18,000 from the City to WCAT shall continue to be made in future fiscal years subject to City's Budget approval. Should actual cable franchise fees received be less than budgeted, the City will adjust the WCAT Page 1— AMENDMENT TO CABLE MANAGEMENT ACCESS AGREEMENT 21 Attachment "A" Page 2 of 12 payment at the City's discretion. Should an adjustment to the WCAT payment be required, the City will notify WCAT in writing prior to the disbursement of the reduced payment. The $18,000 per fiscal year payment by the City to WCAT is in addition to any other payments to WCAT made by a CABLE OPERATOR pursuant to a requirement of a cable television franchise. 2. In all other respects, the Cable Access Management Agreement remains in full force and effect. IN WITNESS WHEREOF the parties have caused this Amendment to be signed in their respective names by their duly authorized representatives as of the dates set forth below. CITY OF WOODBURN, OREGON WOODBURN COMMUNITY ACCESS TELEVISION INCORPORATED Scott C. Derickson, City Administrator Its: Date: Date: Page 2 - AMENDMENT TO CABLE MANAGEMENT ACCESS AGREEMENT 22 Attachment "A" Page 3 of 12 CABLE ACCESS MANAGEMENT AGREEMENT 1. PARTIES. This AGREEMENT is entered into between the City of Woodburn, an Oregon municipal corporation, (CITY) and Woodburn Cable Access Television Incorporated, an Oregon nonprofit corporation, (WCAT). 2. PURPOSE. This AGREEMENT is to engage the services of WCAT to manage and administer public, educational and governmental access to the cable television channels allocated for this purpose by each cable operator , and to manage and administer the television production studio(s) and equipment provided for public, education and governmental use in production of video programs. As used in the AGREEMENT, "cable operator" means the holder of a cable television franchise issued by the CITY. 3. SUBORDINATION. This AGREEMENT is intended to be consistent with, and subordinate to the cable regulatory ordinances and cable franchise agreements of the CITY. WCAT shall conduct all of its operations in a manner consistent with such ordinances and agreements. 4. SCOPE. WCAT shall have the following general responsibilities under this AGREEMENT: 4.1 Adopt and administer rules and standards for public use of production studios and equipment; include regularly scheduled reserved times for educational and governmental agencies' access to and use of the production studios and equipment. 4.2 Adopt and administer rules and standards for scheduling of programs produced or acquired by public individuals or groups for cablecast on public access to programs which are locally produced by local citizens or organizations, and next to programs which are produced elsewhere but sponsored by local citizens or organizations. 4.3 Exercise only such control over program content as is permitted by law and by applicable regulations of the Federal Communications Commissions (FCC). 4.4 Assure that the use of public access channels and production studios and equipment is open to all potential users; assure that access to public access channels and production studios and equipment are available for all forms of public expression, information, and debate on public issues; and promote diverse production and programming that reflects a broad range of service - area subscriber interests. Page 1 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 1 of 10 23 Attachment "A" Page 4 of 12 4.5 Set appropriate standards of training as minimum qualifications for the use by individuals of various pieces of equipment and production facilities; assure that training is available in the WCAT service area which will meet the standards so established. 4.6 Provide advice and technical assistance to the CITY in its negotiations with cable operator(s) for cable operator to provide the means for WCAT programming to be connected or transmitted to CABLE OPERATOR's facilities for cablecast. The cost of the line between WCAT's studio and CABLE OPERATOR's facility shall be provided by CABLE OPERATOR in accordance with its franchise. 4.7 Separately assure, by written agreement or memorandum of understanding, a working relationship with the Woodburn Rural Fire Protection District No. 6 concerning use of the studio facilities at the James Street Fire Station. WCAT has established, as a matter of public policy, that the public access studio facility should be located in the James Street Fire Station until further notice. 4.8 Carefully account for all money and property entrusted to WCAT by the CITY; monies provided to WCAT by the CITY are public resources, and their use and accounting is a public trust for whose proper discharge WCAT is strictly accountable. 4.9 No later than October 1, annually, submit to the CITY a written report of WCAT's activities and achievements during the preceding fiscal year (July through June). 4.10 No later than April 15, annually, submit to the CITY a written report of WCAT's goals and objectives for the ensuing fiscal year, and the work program by which WCAT plans its accomplishments. 4.11 Provide routine quarterly reports, and such other reports and information to the CITY as may be reasonably requested by the CITY from time to time; provide such audits, accounts, and reports as may be specifically required in this AGREEMENT. 5. PUBLIC MEETINGS AND RECORDS. WCAT shall conduct, all meetings subject to the requirements of the Oregon Public Meetings Law (ORS 192.610 to 192.710). WCAT shall treat its records as subject to the requirements of the Oregon Public Records Law (ORS 192.410 to 192.505). WCAT shall give the CITY written notice of all of its meetings. 6. ARTICLES OF INCORPORATION; BY -LAWS; AND POLICIES. WCAT shall, within ten days after adoption or any amendment of its Articles of Incorporation, By- Page 2 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 2 of 10 24 Attachment "A" Page 5 of 12 Laws, and written policies, standards and regulations implementing its responsibilities under this AGREEMENT, provide written copies thereof to the CITY. 7. PUBLIC CHANNEL ACCESS RULES AND PROCEDURES. WCAT shall be guided by the policy that services and resources are available on a first -come, first - served, non - discriminatory basis and shall maintain rules to that effect. 7.1 Public access channels on the residential subscriber network shall not be used for commercial purposes. 7.2 Public access channels on the residential subscriber network shall not be used for the solicitation of funds in any form. 7.3 Program providers may solicit grants from commercial entities to underwrite programs. Programs underwritten or assisted by grants from commercial entities may include a discreet announcement of such support at the time the program is carried on the public access channel. 7.4 Persons, firms and organizations offering programs for cablecast over public access channels shall assume full legal responsibility for the content of all such programs. 7.5 WCAT shall have the right to allocate channel time and resources among those seeking their use so as to promote the broadest possible access to potential users representing all forms of public expression, opinion, interest, and debate on public issues. 7.6 WCAT shall exercise no editorial control over the content of any program submitted for cablecast by any person, firm or organization. 8. RULES FOR USE OF PRODUCTION AND STUDIO FACILITIES. Within 180 days after the effective date of the AGREEMENT, WCAT shall develop and adopt policies, rules and procedures governing use of production and studio facilities administered by WCAT under this AGREEMENT. WCAT shall consult with the cable operator and the Woodburn Rural Fire Protection District No. 6 in preparation of these rules. Production and studio facility use rules and regulations adopted by WCAT shall be consistent with the provisions of this AGREEMENT, and shall include the following limitations: 8.1 All programs produced with production and studio facilities administered by WCAT under this AGREEMENT shall be so identified at the end of the program. Page 3 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 3 of 10 25 Attachment "A" Page 6 of 12 8.2 WCAT may charge reasonable user fees to eligible users for use of production facilities, equipment and services. Eligibility for use of production services and facilities is restricted to residents of the City of Woodburn. 8.3 WCAT shall charge a fee for channel use by individuals and organizations who are residents within cities or unincorporated areas of counties that are not in the CITY; and shall exact similar charges from cities and counties who are outside the CITY. These fees shall be established in recognition of the fact that substantial operating funds for WCAT are provided through franchise requirements and public funds of the CITY. 8.4 WCAT may reserve reasonable periods for use of cable access facilities by public educational or governmental agencies, and for training and certification of public users. 8.5 WCAT may restrict use of various facilities and equipment to users who have demonstrated sufficient ability, through completion of approved training or approved equivalent experience, to safely and productively use such facilities and equipment. 8.6 WCAT may prohibit use of facilities and equipment by persons who are reasonably suspected to be under the influence of alcohol and drugs which may impair their ability to safely and productively use said facilities and equipment and may prohibit use of facilities and equipment by persons who have wilfully violated WCAT user rules and regulations on any previous occasion. 9. DESIGNATION OF PUBLIC ACCESS CHANNELS. WCAT shall have responsibility for administration and management of public, educational and governmental access and programming on all channels designated by the CABLE OPERATOR for such use under the applicable franchise agreement and enabling ordinances. 10. DESIGNATION AND OWNERSHIP OF PRODUCTION FACILITIES. Attached hereto as Exhibit A and, by this reference incorporated herein, is an EQUIPMENT INVENTORY. Such inventory lists all equipment, whether fixed or portable, which has been acquired from the CITY by WCAT for public use, and which is to be administered by WCAT under this AGREEMENT. WCAT may, from time to time, purchase additional or replacement equipment which shall be added to the EQUIPMENT INVENTORY without further necessity to amend this AGREEMENT. From time to time WCAT may, by resolution of its Board, remove equipment from the EQUIPMENT INVENTORY without further necessity to amend this AGREEMENT. All equipment identified on the EQUIPMENT INVENTORY shall be and remain the property of WCAT. WCAT has exclusive ownership and possession of all such equipment with the exclusive right to Page 4 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 4 of 10 26 Attachment "A" Page 7 of 12 use it in its discretion subject only to the terms and conditions of this AGREEMENT. 11. MAINTENANCE OF EQUIPMENT. WCAT will keep all equipment identified on the EQUIPMENT INVENTORY in good repair and in serviceable condition. In the event that any of the equipment requires replacement because of wear, irremediable breakdown, or obsolescence, WCAT shall promptly remove that equipment from service. 12. DISPOSITION OF REMOVED PROPERTY. Upon removal of any equipment from the EQUIPMENT INVENTORY, WCAT shall dispose of it as surplus property in a manner which complies with Oregon law for the disposition of surplus public property by a municipal corporation. Equipment that has been stolen, lost, or destroyed, and is covered by valid and collectible insurance, shall be subject to any rights accorded the insurer under the applicable insurance policy. 13. RISK OF LOSS AND DAMAGE. WCAT shall be solely responsible for the safety and security of the equipment, and shall repair or replace as necessary any of the equipment lost, stolen, damaged or destroyed from any cause, whether or not the fault of WCAT. Nothing in this paragraph shall limit the right of WCAT to require users to assume responsibility for the safety and security of WCAT equipment in such users' custody. 14. INSURANCE. WCAT shall obtain and maintain during the life of this AGREEMENT a policy or policies of property insurance in form and coverage satisfactory to the CITY. WCAT shall also obtain and maintain Worker's Compensation insurance coverage in compliance with the Oregon Worker's Compensation Law; and shall obtain and maintain a policy or policies of comprehensive general liability insurance, including personal injury coverage, in not less than $500,000 combined single limits and in form acceptable to the CITY. The policy or policies of liability insurance obtained by WCAT as required herein shall name the CITY, its officers, employees and agents as additional insureds with respect to claims arising out of WCAT operations under this AGREEMENT. All insurance required herein shall be evidenced to the CITY by a certificate or certificates of insurance satisfactory to the CITY. 15. INDEPENDENT CONTRACTOR. WCAT is an independent contractor, whose operations and actions undertaken under this AGREEMENT are not subject to direction or control by the CITY, as to the means and methods of WCAT performance of the results contemplated by this AGREEMENT. WCAT shall provide all contracted services, paid and volunteer personnel, equipment and supplies necessary for its performance; and is free to solicit other sources of funds to support cable access related services, and to engage in any other lawful activity within its powers as a non- profit corporation. 16. INDEMNITY. WCAT agrees to indemnify, defend and save harmless the CITY, its officers, employees and agents, from any and all claims arising out of WCAT operations under or related to this AGREEMENT. Page 5 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 5 of 10 27 Attachment "A" Page 8 of 12 17. PAYMENTS TO WCAT. 17.1 The CITY shall pay to WCAT from the Cable Franchise Management Fund established by Ordinance No. 2100: A. Twelve and one -half percent (12 1/2 %) of the cable television franchise fees of each CABLE OPERATOR and its successors, derived from the franchise granted to CABLE OPERATOR in Ordinance No. 2093, or any other ordinance granting a cable television franchise. Payments shall be made in quarterly installments. B. Amounts granted to WCAT from the Cable Franchise Management Fund arising from the CABLE OPERATOR franchise, pursuant to Ordinance No. 2093 shall be $1.00 per subscriber per year. 18. REGULATORY PROVISIONS. 18.1 A. The amount of cable television franchise fees payable to WCAT is subject to the City budget process on an annual basis. B. In the event that the CITY, appropriates less than the full amount allocated in Section 17.1(A), WCAT may reduce the budget for government access programming in the amount proportional to the reduction between allocated and appropriated funds. WCAT may further reduce the government access programming budget if WCAT can demonstrate to the CITY that further reduction is necessary to maintain adequate public access services. 18.2 On or before July 1 of each contract year, the City Council, by resolution, may disapprove a budget submitted by WCAT for the succeeding CITY fiscal year upon a determination that the budget submitted by WCAT reflects one or more of the following conditions: A. That the budget fails to comply with the requirements of Section 19 hereof; B. That funds or assets WCAT has received or is to receive from the CITY, or from or on account of a CITY cable franchise, will be spent or applied for purposes unrelated to the community access objectives stated in the WCAT's Articles of Incorporation or in this AGREEMENT; Page 6 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 6 of 10 28 Attachment "A" Page 9 of 12 C. That funds or assets WCAT has received or is to receive from the CITY or from or on account of a CITY cable franchisee, will be endangered by waste, substantial damage, destruction, foreclosure or other similar jeopardy without sufficient explanation or justification therefor; D. That revenue reasonably expected to be received by WCAT will be insufficient to meet debt obligations incurred or to be incurred by WCAT in light of the WCAT's planned expenditures; E. That WCAT's planned expenditures are otherwise fiscally unreasonable in light of generally accepted business practices for the operation, protection, investment, oversight and management of the WCAT's facilities and in light of the corporate purposes stated in the WCAT's Articles of Incorporation and By -Laws; 18.3 If at any time during the period of this AGREEMENT the CITY determines that one or more of the conditions listed in Section 18.2 exists, then notice of such determination together with recommended action shall be given to WCAT by the City Council. 18.4 Upon disapproval of WCAT's budget as provided in Section 18.2 above, the City Council may impose reasonable restrictions on the expenditure of the funds provided to WCAT in Section 17 above, to protect against such fiscal deficiencies pending correction thereof by WCAT. 18.5 This AGREEMENT may be terminated upon a determination by resolution of the City Council that: A. Funds or assets WCAT has acquired from the City or from or on account of a CITY cable franchisee are in immediate danger of waste; B. After reasonable opportunity to do so, WCAT has not complied with reasonable restrictions imposed by the City Council on the expenditure of funds by WCAT as provided in Section 18.4 above; C. After reasonable opportunity to do so, WCAT has not remedied the deficiencies giving rise to the City Council determinations under Section 18.2 or Section 18.4 above; or, D. After reasonable notice and opportunity to do so pursuant to Section 22.2, WCAT has failed to remedy any violation by WCAT of a material provision of this Agreement. 18.6 In the event of termination, or in the event the City does not extend this AGREEMENT beyond the date set forth in Section 23.1, and the City Page 7 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 7 of 10 29 Attachment "A" Page 10 of 12 Council so directs by resolution, WCAT shall pay to the CITY any unexpended funds received by WCAT at any time from the CITY or from or on account of a CITY cable franchisee and, after provision is made for creditors of WCAT, shall transfer to the CITY title to all property owned by WCAT pursuant to WCAT's Articles of Incorporation upon dissolution. 18.7 Nothing herein shall entitle the CITY to recover funds not received by WCAT from the CITY or from or on account of a CITY cable franchisee; nor shall the CITY be entitled to any funds, the recovery of which would prevent full payment of amounts owing to creditors of WCAT. 18.8 The CITY shall not consider the content of public access programming, including the producer's choice of subject matter and the point of view expressed, in making any decision regarding the allocation or appropriation of funds for WCAT, the adequacy of WCAT's public access budget, or the termination of this AGREEMENT. 19. ANNUAL BUDGET PREPARATION. To assist the CITY in the preparation of its own budget, WCAT shall prepare its annual budget on a July 1 to June 30 fiscal year basis and provide a copy to the CITY. Recognizing that the CITY must comply with Oregon Local Budget Law, and that the budget of each party substantially affect the other's, both parties shall cooperate in the preparation of their respective budgets. 20. ACCOUNTING AND AUDITS. WCAT shall keep full and accurate account of receipt and expenditure of all funds paid by the CITY under this AGREEMENT; and shall separately account for funds received from other sources. All books and account shall be kept in accordance with generally accepted accounting practices, and shall be open to inspection by the CITY, its auditor, and authorized representatives upon reasonable advance notice. WCAT shall submit quarterly financial reports to the CITY. In the event an independent audit is initiated by WCAT, a copy of said audit will be supplied to the CITY. 21. NOTICE. Each party's designated representatives for receipt of all notices and communications concerning this AGREEMENT and operations hereunder, shall be: FOR CITY: The CITY ADMINISTRATOR 270 Montgomery Street Woodburn, Oregon 97071 FOR WCAT: The PRESIDENT OF WCAT 22. DEFECTS OF PERFORMANCE; REMEDIES. Page 8 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 8 of 10 Attachment "A" Page 11 of 12 22.1 The CITY's sole obligation hereunder is the payment of funds pursuant to Section 17 of this AGREEMENT. WCAT's sole remedy for any defect of such performance shall be an action for the recovery of any sums owed and in arrears for more than 60 days. In no event shall the CITY be responsible for any other damages of any kind, or any indirect or consequential damages of any nature, regardless of the theory of recovery thereof. 22.2 As a condition precedent to prosecution of any remedy at law or equity against WCAT for alleged defect of performance hereunder, the CITY shall first give WCAT written notice describing the defect to be cured. WCAT shall have a period of ten days after said notice to provide the CITY a satisfactory response, either showing that the alleged defect does not exist, or that the defect has been or will be cured in a reasonable time. If the defect is the lapse or cancellation of any policy of insurance required hereunder, WCAT shall immediately cease all operations upon the written notice from the CITY, and shall not resume operations until replacement or reinstated insurance coverage in place. 23. TERM AND TERMINATION. 23.1 This AGREEMENT shall be in effect upon execution by both parties until it is terminated as provided herein. 23.2 The CITY may, in addition to any other remedy provided by law or equity, terminate the AGREEMENT upon written notice to WCAT that a defect of performance of which WCAT was previously notified pursuant to paragraph 22.2 has not been satisfactorily cured within the time provided. Termination shall be effective upon receipt of such notice by WCAT's representative designated in Section 20 of the AGREEMENT. The CITY may, in its sole discretion, extend the period for cure of a defect, may waive any incident of defective performance, and may reinstate this AGREEMENT upon request of WCAT following termination as provided herein. No failure to object to a defect of performance, waiver, relaxation, extension, or reinstatement on any occasion shall be held to constitute waiver of objection to any future instance of defective performance, whether or not of a similar nature. 23.3 Either party may terminate this AGREEMENT without cause upon written notice to the other party given no later than April 1 of any year. Unless such notice is withdrawn by the party giving it with the consent of the other party, this AGREEMENT shall be terminated effective on June 30 of the following year. Page 9 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 9 of 10 31 Attachment "A" Page 12 of 12 23.4 This AGREEMENT shall be automatically canceled and terminated without further notice upon the happening of any of the following conditions: A. Dissolution of either party. B. Filing by either party of a petition or pleading alleging that it is bankrupt or insolvent. C. Adjudication that either party is a bankrupt, or appointment of a receiver for its assets in any proceeding. D. Any attempt by either party to transfer any of its rights, obligations, or interests in the AGREEMENT without the written consent of the other. E. Attachment or garnishment of any interests or proceeds due or to become due under this AGREEMENT. 24. COSTS AND ENFORCEMENT. In the event any suit or action is necessary to enforce the provisions of this AGREEMENT, the prevailing party shall recover its reasonable costs, including reasonable attorney fees, incurred in prosecuting or defending the action and all appeals therefrom. 25. ENTIRE AGREEMENT. This AGREEMENT constitutes the entire agreement, bargain and understanding of the parties respecting the subject matter herein by execution of this AGREEMENT, the parties repeal all prior agreements, whether written or oral, respecting the subject matter of this AGREEMENT. No parol evidence of any such prior agreement, nor any evidence of any oral agreement, representation, interpretation, or promise made by either party concerning the subject matter of this AGREEMENT shall be received in any action arising out of this AGREEMENT. IN WITNESS WHEREOF the parties have caused this AGREEMENT to be signed in their respective names by their duly authorized representatives as of the dates set forth below. CITY OF WOODBURN, OREGON By: 14-' Woodburn City Administrator Date: S WOODBURN COMMUNITY ACCESS TELEVISION INCORPORATED By: rc�cP President Date Page 10 - CABLE ACCESS MANAGEMENT AGREEMENT Exhibit "A" Page 10 of 10 32 I oOBuR August 8, 2011 TO: Honorable Mayor and City Council FROM: Scott Derickson, City Administrator SUBJECT: Consideration of FY 2011/12 Financial Plan RECOMMENDATION Adopt the attached FY 2011/12 Financial Plan via a motion. BACKGROUND Pursuing the creation of a Financial Plan has been discussed by the City Council and the Budget Committee. Generally, establishing a Financial Plan that contemplates future revenues and expenditures, provides guidance when cuts are required, and solidifies sound financial practices is considered to be good public policy. Over the past year, City staff has developed a proposed Financial Plan consisting of Budget Policies, a Budget Reduction Strategy and a Five Year Financial Forecast. As the City's revenues continue to remain flat while annual operating costs increase, the City's ability to maintain existing levels of services has become more difficult. In addition, the stability of City revenues, particularly General Fund revenues, has become more vulnerable to the economic downturn and less predictable from year to year. In response to uncertain economic climate, the draft Financial Plan, which is intended to be updated and approved by the City Council on an annual basis, is intended to help the City better predict cost and revenue trends from year to year, make better budget decision via the memorializing of sound financial practices, budget administration and if necessary, reducing the City's budget that is consistent with the overall goals of the City Council and the needs of the community. Agenda Item Review: City Administrator _x_ City Attorney _x Finance 33 Honorable Mayor and City Council August 8, 2011 Page 2 DISCUSSION The Council was provided a draft set of Budget Policies and Budget Reduction Strategy on July 8, 2011, the draft 5 -Year Financial Forecast was provided for Council review on June 6, 2011. The proposed Financial Plan was presented to City Council for deliberation and feedback during the July 25 City Council meeting. The attached Financial Plan reflects the changes and modification suggested by the City Council during the July 25, 2011 meeting. FINANCIAL IMPACT Although there is no immediate monetary impact on the City, the draft Financial Plan will help make stronger financial decisions that are in the best interests of the community and the City organization. ATTACHMENTS: FY 2011/12 Financial Plan 2 CITY OF WOODBURN FY 2 011/12 - FINANCIAL PLAN Budget Policies & Reduction Strategy 35 City of Woodburn Budget Policies & Reduction Strategy FY 2011/12 • SECTION 1. ANNUAL REVIEW & POLICY A. Fiscal Responsibility 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 Budd 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. Budget Policies Updated 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. Budget Under the Woodburn City Charter, the City Administrator serves as Woodburn's Budget Officer. The Finance Director assists the City Administrator with preparation and a 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 or disapprove the expenditures contained in the adopted budget if deemed in the best financial interest of the City. 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; I) 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.) are 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 sarne 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 tile community. 2 37 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 & 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. 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. 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. Any 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. I N. Annual Buduet Savint1s 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 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 Backfillinj! 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 Fund 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. Utility 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. 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. 91 a 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 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 I -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 flow 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 Contingency 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 5 40 within adopted levels. No overtime costs can exceed budgeted levels without first obtaining the authorization of the City Administrator. • 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. Emergency 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: 1) 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 Living 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 I 41 A. Letlal Compliance The City Administrator and Finance Director will continue to review and control departmental budgets at the "expenditure category level" (such as personnel services, 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 Prouram 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 find types) when a dedicated resource is available to meet the required debt service and reserve. 7 42 B. Interfund Transfers Interfiind 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. PROGRAMS A. Discretionary Programs 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. Discretionary programs are as follows: Discretionary Programs ✓ Police Patrol & Public Safety ✓ Police Support Services ✓ Financial Services ✓ Legal Services ✓ Land Use Planning ✓ Economic Development ✓ Code Enforcement ✓ General Administration ✓ Library ✓ Aquatic Center ✓ Recreation Programming ✓ Parks and Park/Tree Maintenance ✓ Other General Fund Supported Non - Essential Program & Services • Computer /Network transfers (capital replacements of desktop pe's and associated servers) • Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.) • Community Services (i.e. flower baskets, TOT Grants — where permissible, etc. ✓ 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 services in a professional, effective and efficient manner. Consequently, to the extent possible, across- the -board reductions in expenditures will be avoided. B. 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 programs and services identified by the City Council. C. 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 services funded by discretionary resources. D. Discretionary Contributions If further reductions are required, any discretionary funding that supplements or supports services mostly supported with dedicated resources will be reduced or 43 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. E. 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. F. Consideration List Discretionary funding for programs funded by discretionary resources will be reduced or eliminated as needed. Legal restrictions or the City's ability to maintain minimal service levels will be considered. City service area priorities are: Consideration List ✓ Intergovernmental Agreements that provide no direct offsetting revenues ✓ Community Services (i.e. flower baskets, TOT Grants — where permissible, etc.) ✓ Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.) ✓ Computer/Network transfers (capital replacements of desktop pc's and associated servers) ✓ Other General Fund Supported Non - Essential Program & Services ✓ Parks and Park /'free Maintenance ✓ Recreation Programming ✓ Aquatic Center ✓ Library ✓ General Administration ✓ Code Enforcement ✓ Economic Development ✓ Land Use Planning ✓ Legal Services ✓ Financial Services ✓ Police Support Services ✓ Police Patrol & Public Safety G. 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 self- 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. H. Dedicated Funding for Programs Where legally possible, the City will consider using dedicated resources to fund high priority programs related to the purpose for which the dedicated funds are received. 44 '1 EXHIBIT / 1 t Exhibit A 45 City of Woodburn Five Year Forecast For Years 2011 -12 to 2016 -16 Table of Contents Introduction................................................................................................................... ............................... 5 Cityof Woodburn Background ................................................................................... ............................... 5 Purposeof the Forecast ............................................................................................. ............................... 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 46 RemainingFunds ............................................................................................................ .............................22 Major Assumptions — Revenues ................................................................................... ............................... 23 MajorAssumptions — Expenditures ............................................................................... .............................25 Glossary ........................................................................................................................ ............................... 26 Appendices ................................................................................................................... ............................... 28 Exhibit A 47 �* ��. ; a �y; � I z The City of Woodburn is located in Marion County, Oregon, 18 miles northeast of the City of Salem along the I -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. 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. The financial forecast will serve as a basis of our financial plan — which will likely include changes to the City's budget policy. The intent of this financial forecast is to project 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. Z � - 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 48 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. This report is a combined effort of all City staff. Each department provided insight into future year 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. The forecast model predicts that most operating funds will have sufficient resources to meet expenses over the five -year period. A few of the fund graphs depict a declining undesignated balance of 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. 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 49 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. • 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. L T S M�� 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 11 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. u , Genera! Fund New demands for services will need either new resources or program cuts in other areas. Currently, police coverage is 1.26 officers per 1,000 residents (recommended coverage is 1.50 per 1,000 residents) — 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 and ADA compliance requirements. Staff has brought forth a proposal for City Hall security upgrades 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 a 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. t ; s_ 0,- 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 51 .`S • 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 • No significant changes to staffing levels • FY 2011 -12 first year of Aquatics Center cost recovery plan (assumed to recover 50% in each of the fiscal years) • No increases to park maintenance program. 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 This number is projected to increase if there 10,000,000 ° 8,000,000 are significant new developments within city Revenue 6,000,000 limits. Franchise fees are the second largest 4,000,000 ExP.— 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 d o d o d o d o d o o ti d o d o d o d o �o 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. r FV =r There are no significant capital projects to be funded by the General Fund in the forecast. 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 52 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. �.� ",.�.? •tom , t �t� ?1.t,.��.r� ";m 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 53 t. ■ Permit revenues are based on approved increases beginning in FY 2013 -14 and an expectation of increased commercial development in FY 2014 -15. Revenues are based upon permits issued for new development and redevelopment that historically ebb and flow. Permits are collected prior to the work being done and therefore cash balances exist to pay for services to be performed in the future. The graph depicts the effects of the current downturn in new development starts. Future revenues are based on estimates of when specific projects might begin. Costs reflect cuts and reductions already in place. 1,400,000 1,200.000 800,000 600,000 � �°. +"'"' �- �ftevenue u .w. 400,000' ^w. 200,000 .�.. d o d o d o d o d o o ti d o d o d o .o d o 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 fund is projected to have sufficient resources to carry the program through the next five years. 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 54 T ransit Fury • None • Ability to continue to obtain grant funding • General Fund contribution remains stable for forecast period • Fares remain consistent for forecast period The City's Transit system provides bus operations as well as Dial -a -Ride services for disabled citizens. The Transit operation is funded by a contribution of $151,000 from the General Fund, approximately $30,000 in fare revenue with the balance made up from State and Federal grants. The graph depicts a future of expenditures 900,000 800.000 100.000 " 600,000 500.000 q .•'' __ 400,000 ✓ �,„. - - Revenue 300 ^� -° Fxpense 200,000 100,000 o� 6 6 e a ti titi ti ti" ti� O O 0` O O o 'ti 'ti ti� ti 1 , ,�0 , , ti 0 ��� , , , , , 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. Replacement of buses and vans is done as- needed and historically they have been replaced when grant funding is available. 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 55 • Gas taxes are increased 6 cents per gallon on January 1, 2011 Gas taxes distributed by the State are the 2,500,000 primary resource for this fund. Taxes peaked in FY 2005 -06 and have been in decline since. 2,000000 The 2009 Legislative Session approved 1,500,000 increases in vehicle title and registration fees 1000,000 which became effective in 2010 and a 6 cent ° ° - -- Revenue -° ° —Expe- 500.000 per gallon (25 %) became effective January 2011. A referendum petition to repeal the new law failed to collect enough signatures. ° ° °�° °9� 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. Replacement of buses and vans is done as- needed and historically they have been replaced when grant funding is available. 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 a City Gas Tax Fund . =Y dt.c fi 01 laa Ei S f$..R� ! �_..; 45 3i S3�Y t ,� • None In 1996 the City Council adopted a local gas 600 °0° tax for all fuels sold within the City of 500,000 Woodburn of .01 cent per gallon. As 400,000 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. c3 Revenue "' °Expense 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. z Historically, the City Gas Tax Fund has collected $100k to $120k per fiscal year in revenues. The amounts collected per fiscal year are expected to remain constant over the forecast period. As sufficient reserves become available, projects are planned and completed as part of the City's Capital Improvement Plan. Exhibit A 57 d o d o d o d o , � , d o , d o do Street System Development d • SDCs are forecasted to remain flat through FY 2015 -16 • Required $4 million reserve maintained throughout the forecast period 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 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Revenue Npense 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. F. >,. 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 I ti ti ti ti ti d o ti ti ti ti ti 1- y . }. F }} cj • Addition of 1 FTE —Water Quality Supervisor • User Fees increase by 5% beginning FY 2013 -14 Revenues and treatment costs are driven by 3,000,00 consumption — which due to increased 2,s00,000 M w.�. conservations efforts by the City should 2,000,000 r , continue to decline over the forecast period. 3500,000 - The 2001 Water Master Plan authorized the - - Revenue 3,oao,000 City's last rate increase — those increases 1 Se 500,000 , ended in FY 2006. The 2001 Water Master Plan called for several treatment and raw ooy oo0 oo ^o % Qo �q o o09 yo o �� o�a o ?�y water transmission line projects to be ti ti ti ti ti d o ti ti ti' ti 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 ensuing fiscal years. As personnel, material and services costs conservation efforts continue to increase levels of service will become 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 a high level of service. Exhibit A Wat er D 1 • Refinancing of current Water Loans with OECDD and DEQ 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 9,000,000 8.000,000 7,000,000 6.000,000 sr � 6.000,000 4,000,000 '4 . _Revenue 3,000,000 Expense 2,000,000 P ,000,000 o° QA o� o ti� i titi y ti O ti 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. 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 .1 • Rate increases of 9.5% per year through FY 2013 -14 In 2007 the City entered a Mutual Order Agreement with the Department of Environmental Quality that called for significant improvements to the City's wastewater treatment plant and system as part of the approval of the City's wastewater treatment permit. The City implemented those improvements beginning in FY 2008 -09 as part of a 20 year plan — the total cost of those required improvements will total $94 million. To date the City has issued approxii Phase II of the project will begin in FY 2011 -12 to fund the second phase of the project. 5,000,000 _... 4,500,000 4,000,00o 3 500,000,....- .. " - .� 3,000,000 2,500,000 2,000,000 1,500 000 _..... E.�rn,e 1,000,000 so0,000 0 0 0� �p Oh. Q F , p 1 , p4 �5 py ' ��' , tip 1h, , , , . , �ti , .LO 1611, . . nately $19.5 million in loans for Phase I of the project. — an additional $23.5 million in loans /bonds will be issued 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. 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 61 A- 0 No dedicated Surfacewaterfee included in forecast 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. 400,000 350,000 00 250,000 200,000 ft 350,000 f 100,000 50,000 _.. oo9 ti O,oti 'LO~ 'ti 'L � 1 �ti 'lo , h 'ti 'LO a 1 'LO y 'Y ti Revenue ° ^ --- Expense Y g ^!s' d.. .:•i?( .� As personnel, material and services costs conservation efforts continue to increase levels of service will become difficult to maintain — as no dedicated source of revenue exists to fund the program's operations. 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 62 • Rate increases of 9.5% per year through FY 2013 -14 • Refinancing of current Sewer Loans with OECDD and DEQ • Issuance of $23.5 million to begin Phase II Treatment Plant improvements As approved by the City Council rate increases have been instituted to allow for the funding of the required capital improvements to the City's infrastructure (Phase 1) and treatment plant (Phase II and 111). These user rates are split between the sewer operating and capital construction funds. As the graph depicts Phase II debt will be issued in FY 2011 -12 and construction will begin in the ensuing fiscal year and should be completed over a two to three year period. 30,000,000 25,000,000 r 1 20,000,000 f 15,000,000 r 10,000,000 {�,�._Z . °•. Revenue i Expense 5.000,000 d o d o d o d o d o o� d o d o .o ti� do ti 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. User fees (rates) will be closely monitored to ensure they are adequate to service outstanding and ongoing debt. Exhibit A 63 • None 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 or 1,000,000 900,000 700,000 600,000 500,000 '. -... _.... 400,000 -..- _.. -..- _.. - -. Revenue 300,000 -_.. __. - - -.. -. -. -- Expense 200,000 100,000 O N IS I 0 4 d, .11 p 5" 0 6 o T 0 4" 0 °'' p 'ti ti ti , , . . do ti� ti� do ti� Do ti do ti� ti� d o d o going costs. n 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 64 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. 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 591 — 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 65 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 $19,08 661 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. 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 revenues are expected to remain flat for the forecast period. Utility User Charges 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 Taxes 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 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. Bond Sales One revenue bond sale is anticipated and is for the Wastewater Treatment Plan Project Phase H. The sale amount is estimated to be $23.5 million amortized over 20 years at 3 %. Transfers In — Operating 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 67 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. 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. fl 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. 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. 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 am 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 The amount of cash that is brought forward from one fiscal year to the next. 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 debt service reserves and amounts accumulated for specific use in a future year. Designated 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 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 70 Exhibit A 71 General Fund Actual Actual Actual I Budget Projections Re venues: 2007 -08 2008 -09 200910 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Fund Balance Beginning Fund Balance Fund Balance Total Taxes Property Tax Property Taxes Delinquen Taxes Total Licenses and Permits Business License Hotel /Motel Tax Other License Pmt in Lieu of Taxes Taxicab Permits Licenses and Permits Total Franchise Fees Franchise Fee Reconex Franchise Fee Sprint Franchise Fee, Gervais T Franchise Fee, NW Natura Franchise Fee, PGE Franchise Fee, Qwest Franchise Fee, United Di Franchise Fee, W AmbLllan Franchise Fee, Wave BB Matrix Preferred LID Franchise Franchise Fees Total Intergovernmental 911 Tax Federal Grants Federal Grants Indirect Ready to Read Grant Regional Library Service State Cigarette Tax State Gas Tax State Grants State Liquor Proration State Rev Shar'g Intergovernmental Total Exhibit A 2,192,772 2,574,080 2,290,557 2,293,127 2,427,854 1,546,918 404,669 (935,838) (2,526,776 2,192,772 2,574,080 2,290,557 2,293,127 2,427,854 1,546,918 404,669 (935,838) (2,526,776 38,565 30,165 47,795 38,000 38,000 38,000 38,000 38,000 38,000 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 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 20,718 19,033 24,698 16,000 16,160 16,322 16,485 16,650 16,816 38,565 30,165 47,795 38,000 38,000 38,000 38,000 38,000 38,000 238,518 270,987 214,782 220,000 220,000 220,000 220,000 220,000 220,000 6,964 6,815 4,754 2,500 2,500 2,500 2,500 2,500 2,500 36,552 30,835 26,979 30,000 30,600 31,212 31,836 32,473 33,122 - - - 2,500 1,000 1,000 1,000 1,000 1,000 320,599 338,803 294,310 293,000 292,100 292,712 293,336 293,973 294,622 - 179 - - - - - - - 20,718 19,033 24,698 16,000 16,160 16,322 16,485 16,650 16,816 172,339 169,120 145,722 180,000 181,800 183,618 185,454 187,309 189,182 604,923 568,945 621,269 600,000 606,000 612,060 618,181 624,362 630,606 96,356 84,041 84,058 85,000 85,850 86,709 87,576 88,451 89,336 111,918 106,651 100,199 105,000 106,050 107,111 108,182 109,263 110,356 11,483 14,354 8,613 10,000 10,100 10,201 10,303 10,406 10,510 68,382 53,101 75,616 65,000 65,650 66,307 66,970 67,639 68,316 58 - - - - - - 30,000 - 493 572 442 - - - - - - 1,086,670 1,015, 997 1,060, 617 1,061,000 1,071,610 1,082,326 1,093,149 1,104,081 1,115,122 119,000 119,000 119,000 119,000 119,000 57,037 50,172 - 51,000 100,000 100,000 100,000 25,000 25,000 - - 46,945 - - 4,487 4,346 4,021 4,500 3,500 3,500 3,500 3,500 3,500 63,357 87,044 75,060 75,000 75,000 75,000 75,000 75,000 75,000 37,434 36,349 28,235 35,000 33,000 32,500 32,000 31,500 31,000 15,584 66,464 18,215 57,000 30,000 30,000 30,000 30,000 30,000 259,463 279,176 197,203 270,000 250,000 250,000 250,000 250,000 250,000 - - - - 230.000 230.000 230.000 230.000 740.000 437,362 72 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 Fines and Forfeits Alarm Fee 1,415 330 - 1,000 1,000 5,000 5,000 5,000 5,000 Court Fines 550,165 487,459 689,258 420,000 492,500 492,500 517,125 542,981 559,271 Library Fines 11,590 11,871 13,817 12,000 12,000 12,000 12,000 12,000 12,000 Police Training Surcharg 18,574 12,079 (4,143) 23,000 20,000 20,000 20,000 20,000 20,000 Rural Reader's Fines - - - - - - - - - Towing Fee 60,775 51,656 45,048 52,000 52,000 50,000 50,000 50,000 50,000 508,000 577,500 579,500 604,125 629,981 646,271 Fines and Forfeits Total 642,520 563,395 743,980 Charges for goods and services Active Adult - (598) 6,297 6,820 6,956 7,096 7,237 7,382 7,530 Administration 3,264 5,500 3,229 1,000 1,020 1,040 1,061 1,082 1,104 Adult Program 869 9,205 1,056 - - - - - - Adult Sports 22,611 18,449 24,375 26,000 26,520 27,050 27,591 28,143 28,706 After School Club 45,273 61,553 42,688 49,000 49,980 50,980 51,999 53,039 54,100 Arts & Culture - - 23,500 500 510 520 531 541 552 Concession Sales 17,789 15,823 14,219 15,000 15,300 15,606 15,918 16,236 16,561 Event Admission 200 700 3,130 - - - - - - Fiesta Events - - 1,000 30,000 30,600 31,212 31,836 32,473 33,122 Fitness Classes - - - - - - - - - Lien Search Revenue 14,467 10,388 13,350 9,000 9,180 9,364 9,551 9,742 9,937 Museum Admission - 60 - - - - - - - Planning Fees 86,994 36,040 52,563 23,485 23,955 24,434 24,922 25,421 25,929 Police Reimbursements - - - 2,631 2,684 2,737 2,792 2,848 2,905 Pool Admissions 76,760 83,208 79,705 82,000 98,719 98,379 102,337 106,492 110,853 Pool Memberships 25,036 30,632 31,502 29,000 29,580 30,172 30,775 31,391 32,018 Pool Rentals 11,706 MOSS 10,029 10,000 10,200 10,404 10,612 10,824 11,041 Reimbursements SD 61,160 63,908 536 45,000 45,900 46,818 47,754 48,709 49,684 Resale of Merchandise 5,359 7,214 6,465 7,500 7,650 7,803 7,959 8,118 8,281 Rural Readers' Fees 4,135 3,561 3,381 4,000 4,080 4,162 4,245 4,330 4,416 Sponsorship Revenue 250 1,475 7,711 9,000 9,180 9,364 9,551 9,742 9,937 Sponsorships - - - - - - - - - Swimming Lessons 46,720 52,640 48,855 50,000 51,000 52,020 53,060 54,122 55,204 T &E Planning Develop Fee 54,572 10,518 10,924 7,905 8,063 8,224 8,389 8,557 8,728 Teen Program Revenue 2,928 258 1,438 200 204 208 212 216 221 Towels /Misc - - - - - - - - - Youth Program 37,188 25,081 28,191 25,000 25,500 26,010 26,530 27,061 27,602 Youth Sports 19,578 16,519 18,711 21,000 21,420 21,848 22,285 22,731 23,186 454,041 478,201 485,450 497,150 509,201 521.616 Charges for goods and services Total 536,858 462,186 432,854 Exhibit A 73 General Fund Actual Actual Actual I 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 - 5 109 - - - - - - Donations- Library 10 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 - - - - - - - - Interestfrominvestment 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 Frog 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,SOO 23,500 23,500 23,SO0 23,500 Sale of Bid Documents - - 1,150 - - - - - - Sale of Documents 2,539 2,272 2,032 2,000 2,000 2,000 2,000 2,000 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 - - - - - - - - - WoodburnTogetherGrant - - - - - - - - - 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 84,413 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 74 General Fund Actual Actual Actual Budget Projections Expenditures: 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Council & Mayor Labor and Benefits 2,606 2,591 2,524 2,637 2,637 2,637 2,638 2,638 2,639 Supplies and Services 21,841 37,379 38,369 39,758 40,951 42,179 43,445 44,748 46,090 42,395 43,588 44,816 46,082 47,386 48,730 Council & Mayor Total 24,447 39,969 40,892 Administration Labor and Benefits 329,964 225,754 212,155 143,932 152,153 160,056 167,865 176,131 184,878 Supplies and Services 61,792 78,528 59,193 35,525 36,591 37,688 38,819 39,984 41,183 Capital Outlay 1,294 - - - 179,457 188,744 197,744 206,685 216,114 226,061 Administration Total 393,050 304,282 271,348 City Recorder Labor and Benefits 43,203 63,066 83,499 34,467 36,638 38,572 40,259 42,045 43,936 Supplies and Services 12,935 18,567 22,930 18,134 18,678 19,238 19,816 20,410 21,022 Capital Outlay 3,215 1,400 1,246 - CityRecorderTotal 59,354 83,033 107,675 52,601 55,316 57,810 60,075 62,455 64,958 City Attorney Labor and Benefits 125,422 121,892 128,045 115,752 122,585 128,913 134,840 141,112 147,749 Supplies and Services 24,409 28,981 32,754 40,581 41,798 43,052 44,344 45,674 47,045 156,333 164,384 171,966 179,184 186,786 194,793 City Attorney Total 149,831 150,872 160,799 Finance Labor and Benefits 156,187 167,593 163,903 126,998 135,014 142,149 148,448 155,116 162,177 Supplies and Services 78,411 94,649 166,199 195,253 201,111 207,144 213,358 219,759 226,352 322,251 336,125 349,293 361,806 374,875 388,529 Finance Total 234,598 262,243 330,101 Human Resources Labor and Benefits - - - 10,661 11,299 11,885 12,426 12,998 13,604 Supplies and Services - - - 36,497 37,592 38,720 39,881 41,078 42,310 47,158 48,891 50,604 52,307 54,076 55,914 Human Resources Total - - - Court Labor and Benefits 151,837 179,975 152,160 154,495 163,609 171,522 178,243 185,352 192,871 Supplies and Services 27,460 33,895 40,484 44,436 45,769 47,142 48,556 50,013 51,514 Capital Outlay - - - 6,000 Court Total 179,297 213,869 192,644 204,931 209,378 218,664 226,800 235,365 244,384 Non - departmental Supplies and Services 90,513 136,924 113,955 282,500 290,975 299,704 308,695 317,956 327,495 Capital Outlay 7,710 - - - - - - - - Transfers Out 519,632 629,832 123,259 454,725 476,331 476,331 476,331 476,331 476,331 737,225 767,306 776,035 785,026 794,287 803,826 Non - departmental Total 617,855 766,756 237,214 Police Labor and Benefits 3,716,640 4,086,631 4,009,285 4,525,500 4,751,662 4,973,698 5,179,939 5,398,077 5,628,816 Supplies and Services 1,007,468 1,148,889 1,259,926 1,326,107 1,365,890 1,406,867 1,449,073 1,492,545 1,537,321 Capital Outlay 22,624 5,835 - 33,200 - - - - - Police Total 4,746,732 5,241,355 5,269,211 5,884,807 6,117,552 6,380,565 6,629,012 6,890,622 7,166,138 Library Labor and Benefits 622,819 659,123 621,389 753,872 798,953 832,835 862,261 893,317 926,099 Supplies and Services .351,213 379,097 380,372 402,710 414,791 427,235 440,052 453,254 466,851 Exhibit A 75 General Fund Actual Actual Actual Budget Projections Expenditures: 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Library Total 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 Recreation Labor and Benefits 234,675 226,477 216,944 313,279 321,978 330,103 337,908 346,070 354,611 Supplies and Services 95,162 106,690 130,571 197,243 203,160 209,255 215,533 221,999 228,659 510,522 525,139 539,358 553,440 568,069 583,269 Recreation Total 329,836 333,167 347,515 Swimming Pool Labor and Benefits 355,293 387,511 361,657 394,801 226,915 223,968 229,485 235,260 241,306 Supplies and Services 239,017 241,490 266,792 277,381 285,702 294,274 303,102 312,195 321,561 672,182 512,617 518,241 532,587 547,454 552,867 Swimming Pool Total 594,310 629,001 628,449 Community Services Admin Labor and Benefits 239,572 258,286 233,549 366,506 388,887 409,253 427,713 447,252 467,934 Supplies and Services 80,239 75,796 90,968 116,995 120,505 124,120 127,844 131,679 135,629 483,501 509,392 533,373 555,556 578,931 603,563 Community Services Admin Total 319,811 334,082 324,516 Planning Labor and Benefits 382,094 437,458 342,448 311,402 330,120 347,452 353,568 380,627 398,684 Supplies and Services 43,697 41,993 45,192 54,448 56,081 57,764 59,497 61,282 63,120 365,850 386,202 405,215 423,065 441,909 461,805 Planning Total 425,790 479,450 387,640 Maintenance Labor and benefits 335,180 388,034 384,706 431,249 458,257 482,014 501,967 523,094 545,463 Supplies and Services 132,009 155,868 162,014 171,847 177,002 182,312 187,782 193,415 199,218 Capital Outlay 18,894 - - - 603,096 635,260 664,326 689,749 716,509 744,681 Maintenance Total 486,083 543,902 546,719 11,418,591 11,713,637 12,165,081 12,603,686 13,061,409 13,542,468 Total Expenses 9,535,027 10,420,201 9,846,485 Ending Fund Balance 9,535,027 10,420,201 9,846,485 11,418,591 1,546,918 404,669 (935,838) (2,526,776) (4,278,934) Exhibit A Building Inspection Actual Actual Actual I Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 20 Revenue Fund Balance 361,653 310,540 143,482 42,596 42,596 218,341 308,577 445,379 613,937 Licenses and Permits 258,071 89,764 135,357 239,616 383,386 402,555 462,938 509,232 534,694 Charges for goods and services - - (26) - - - _ - - Misc 21,629 6,732 22,859 4,950 10,000 10,000 10,000 10,000 10,000 Other Financing Sources - - - 172,933 80,000 - - _ Revenue Total 641,353 407,036 301,672 460,095 515,982 630,895 781,515 964,611 1,158,630 Expense Labor and Benefits 281,457 231,367 179,140 210,611 208,815 230,827 241,901 253,611 265,996 Supplies and Services 35,491 32,187 35,870 160,258 88,826 91,491 94,236 97,063 99,974 Capital Outlay - - - _ - - _ - - Transfers Out - Conting'y & Unapprop - - - 89,226 - - - _ _ Expense Total 316,948 263,554 215,010 460,095 297,641 322,318 336,137 350,674 365,971 Ending Fund Balance 324,405 143,482 86,662 - 218,341 308,577 445,379 613,937 792,660 Exhibit A 77 Transit Fund Revenue Fund Balance Taxes Intergovernmental Charges for goods and services Misc Transfers In 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 2007 -08 2008 -09 2009 -10 1 2010 -11 20 -12 Proiections 140,805 150,201 60,960 135,173 61,000 204,061 140,870 81,580 (9,792) 144,388 150,954 155,869 151,000 151,000 151,000 151,000 151,000 151,000 144,599 79,214 257,565 338,080 559,000 375,000 400,000 390,000 390,000 26,618 27,913 23,893 28,000 39,390 39,784 40,182 40,584 40,989 12,905 12,566 15,894 9,500 9,500 9,500 9,500 9,500 9,500 27,507 - - - - - - 496,822 420,848 514,181 661,753 819,890 779,345 741,552 672,664 581,698 243,872 262,922 280,405 382,463 346,461 361,266 374,688 388,854 403,807 93,946 88,027 124,813 149,346 261,343 269,183 277,259 285,577 294,144 - - 41,898 120,000 8,025 8,025 8,025 8,025 8,025 9,000 9,000 - - - - - - - - - - 9,944 - - - - - 346,818 359,949 447,116 150,004 60,899 67,065 753 615,829 638,474 659,972 682,455 705,976 - 204,061 140,870 81,580 (9,792) (124,278) 78 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 1,050,000 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 300,000 130,000 165,000 90,000 337,942 320,000 320,000 320,000 320,000 1,140,572 1,410,342 1,432,293 1,450,619 1,459,099 1,456,804 Revenue Total 2,064,696 1,839,095 1,384,126 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 1,263,245 1,445,559 1,330,506 1,140,572 1,396,249 1,432,627 1,476,211 1,521,733 1,569,289 Ending Fund Balance 801,451 393,536 53,620 - 14,093 (335) (25,592) (62,635) (112,485) Exhibit A MW City Gas Tax Actual Actual Actual I Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue Fund Balance Taxes Intergovernmental Misc Transfers In Revenue Total Expense Supplies and Services Capital Outlay Conting'y & Unapprop Expense Total Ending Fund Balance Exhibit A 277,952 421,414 28,830 1 213,000 44,408 166,808 291,656 39,001 137,120 118,670 108,681 115,000 120,000 122,400 124,848 127,345 129,892 14,342 3,428 355 300 350 - - - - 168,893 3 - 4,000 36,000 8,000 510,926 9,255 101,429 310,000 - - 10,871 - E I 30,000 350,000 116,300 346,000 - - 380,000 - (10,871) 44,408 166,808 291,656 39,001 168,893 80 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 Misc 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 6,545,736 6,026,122 4,204,522 5,500,000 254,522 409,044 Expense Supplies and Services 16,123 2,551 255,972 356,611 805,850 - - - Debt Service 34,519 - - 100,000 100,000 Capital Outlay - 202,809 606,672 2,950,000 1,185,753 - 5,500,000 - - Transfers Out - - - 256,500 - - - - - Conting'y & Unapprop - - - 2,982,625 - - - - - Charges for goods and services - - - - - - - - - _Expen To tal _______________ 16,123 205,360 862,644 6,545,736 2,026,122 - 5,500,000 100,000 100,000 Ending Fund Balance 7,426,111 7,549,656 6,928,601 - 4,000,000 4,204,522 - 154,522 309,044 Exhibit A 81 Water Actual Actual Actual I Budget Projections 20 2007 -08 2008 -09 09 10 - 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue Fund Balance Charges for goods and services Misc Other Financing Sources Transfers In Revenue Total Expense Labor and Benefits Supplies and Services Capital Outlay Transfers Out Conting'y & Unapprop Revenue Total Ending Fund Balance Exhibit A 659,063 639,986 643,983 515,000 515,000 376,676 113,727 (126,207) (342,009) 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 84,474 55,558 51,709 30,500 30,500 30,500 30,500 30,500 30,500 - - - 85,442 - - - - - 70,000 85,000 85,000 85,000 85,000 85,000 85,000 85.000 85.000 955,388 1,017,361 549,594 535,122 41,805 37,335 346,000 346,000 885,597 1,131,631 1,279,863 1,422,856 1,483, 732 1,548,133 1,616,267 542,777 673,836 721,890 743,547 765,853 788,829 812,494 9,212 40,000 40,025 - - - - 346,000 431,442 336,000 336,000 336,000 336,000 336,000 - 130,144 - - - - - 892,788 _ _1,935,818 1,783,586 2,407,053 2,377,778 2,502,403 2,585,585 2,672,961 2,764,760 637,204 643,847 694,477 - 376,676 113,727 (126,207) (342,009) (532,527) 82 Water Well /Dist Const Revenue Fund Balance Intergovernmental Charges for goods and services Misc Other Financing Sources Transfers In Expense Total Labor and Benefits Supplies and Services Debt Service Capital Outlay Transfers Out Conting'y & Unapprop Expense Total Ending Fund Balance Exhibit A Actual Actual Actual Budget 4,390,783 2,318,082 Projections. 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 3,727,732 4,602,187 5,792,564 4,547,846 3,149,564 1,167,910 963,082 1,606,392 1,643,012 1,580,3158 1,613,261 1,095,000 1,105, 950 1,117,010 170,993 94,791 27,867 25,500 10,000 5,000 5,000 - - 324,339 2,528,661 136,219 39,222 39,222 2014 -15 2015 -16 769,314 586,715 1,128,180 1,139,461 5,000 5,000 39,222 39,222 5,505,117 6,339,990 7,725,138 8,715,268 4,390,783 2,318,082 2,124,314 1,941,715 1,770,398 25,740 12,400 250,567 929,748 140,000 75,000 75,000 75,000 75,000 750,878 753,673 753,023 1,157,349 1,155,417 700,000 700,000 700,000 700,000 126,322 13,405 1,064,538 5,161,486 1,847,456 500,000 500,000 500,000 500,000 - - - 429,433 80,000 80,000 80,000 80,000 80,000 - - - 1,037,252 - 902,940 779,478 2,068,128 4,602,177 5,560,512 5,657,010 3,222,873 1,355,000 1,355,000 1 1,355,000 1,167,910 963,082 769,314 586,715 415,398 83 Sewer Actual Actual Actual I Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Revenue 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 forgoods 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 2,868,527 3,083,984 3,190,705 3,353,360 3,498,799 3,912,994 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 41S 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 - - - - - Chargesforgoodsandservices - - - - - - - - Expense Total 2,198,044 11 2,338,5 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 84 Surfacewater - Actual Actual Actual I Budget Projections 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 20 Revenue Fund Balance Misc Transfers In Revenue Total Expense Labor and Benefits Supplies and Services Capital Outlay Conting'y & Unapprop Expense Total Ending Fund Balance Exhibit A - 46,000 102,815 53,494 (7,846) (76,689) (153,716) 155 100 100 100 100 100 100 235,000 235,000 235,000 240,000 245,000 250,000 255,000 235,155 281,100 337,915 293,594 237,254 173,411 101,384 134,929 200,825 227,354 252,452 263,485 275,156 287,502 17,144 36,615 47,561 48,988 50,457 51,971 53,530 - 17,500 9,506 - - - - - 26,160 T ,073 281,100 284,421 301,440 313,943 327,127 341,032 ,082 - 53,494 (7,846) (76,689) (153,716) (239,648) 85 WWTP Construction 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 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 1,000 1,000 Other Financing Sources - 562,045 355,583 1,900,000 23,500,000 - - - - Transfers In - - - Revenue Total 2,824,098 3,187,737 2,841,577 5,733,471 27,575,136 25,090,571 18,873,482 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 2,235,478 2,809,933 2,752,196 5,733,471 5,564,257 9,589,257 11,800,000 11,424,164 4,500,000 Ending Fund Balance 588,620 377,804 89,381 - 22,010,879 15,501,314 7,073,482 (978,514) (2,106,346) Exhibit A 86 Building Maintenance Actual Actual Actual Budget Projections 2007 -08 2008 -09 2 009 -10 1 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -1F Revenue Fund Balance 58,814 27,124 14,588 30,000 120,000 41,220 41,220 41,220 41,220 Charges for goods and services 635,001 709,000 792,083 838,762 658,945 767,694 786,245 816,469 837,234 Misc 3,840 6,161 5,276 250 - - - - _ Transfers In 12,000 999 - - - - _ Revenue Total 709,655 743,284 811,947 869,012 778,945 808,914 827,465 857,689 878,454 Expense Labor and Benefits 301,649 338,348 351,090 363,570 394,757 414,437 432,988 452,614 473,379 Supplies and Services 375,223 390,349 379,476 484,437 342,968 353,257 353,257 363,855 363,855 Capital Outlay 5,658 - - - - - _ _ Conting'y & Unapprop - - - 21,005 - - - - _ Expense Total 682,530 728,697 730,566 869,012 737,725 767,694 786,245 816,469 837,234 Ending Fund Balance 27,125 14,587 81,381 - 41,220 41,220 41,220 41,220 41,220 Exhibit A 87 I oOBuR August 8, 2011 TO: Honorable Mayor and City Council through City Administrator FROM: Dan Brown, Public Works Director SUBJECT: Award of Construction Contract; Aquatic Center Replastering and Repair RECOMMENDATION That the City Council Award the construction contract for Aquatic Center Pool Replastering and Repair in the amount of $139,512.00 to Anderson Poolworks. BACKGROUND Bids for the improvement were opened on July 6, 2011. Three responsive and qualified bid proposals were received. No: Name Amount 1 Atlantis Pool Plastering Inc. $178,854.00 2 Mid - America Pool Renovations $149,220.00 3 Anderson Poolworks $139,512.00 Engineer's Estimate $115,000.00 DISCUSSION The project, as approved in the 2011 -12 Capital Improvement Project budget, entails replacement of plaster finish in the pool, replacement of underwater lights with improved energy efficient fixtures, replacement of damaged deck drains, and replacement of failed caulking in the deck area. The contract award is in conformance with public contracting laws of the State of Oregon as outlined in ORS Chapter 279C and the laws and regulations of the City of Woodburn. Staff is recommending that the contract be awarded. Agenda Item Review: City Administrator _x_ City Attorney _x_ Finance _x_ Honorable Mayor and City Council August 8, 2011 Page 2 FINANCIAL IMPACT The project will be funded using approved General CIP Fund (358) as identified in the 2011/12 Fiscal Budget. I oOBuR August 8, 2011 TO: Honorable Mayor and City Council through City Administrator FROM: Dan Brown, Public Works Director SUBJECT: Acceptance of Public Utility Easement; Parcels 1, 2, and 3 of 612 North Cascade, Woodburn, Oregon Driftwood Mobile Home Park Tax Lots: 052W12DD00200, 052W12DD00400, 052W12DD00500, and 052W12DD00600 RECOMMENDATION That Council accept a Public Utility Easement for City water facilities granted by Western Sage Management Inc., property owners of 612 North Cascade Drive, Woodburn, OR 97071, known as Driftwood Mobile Home Park (Tax Lots 052W 12DD00200, 052W 12DD00400, 052W 12DD00500, and 052W 12DD00600). BACKGROUND A permanent water line easement is necessary to provide City water service to 612 North Cascade Drive, Woodburn, OR 97071, also known as Driftwood Mobile Home Park. An ARRA grant and a forgiven State Revolving Fund loans provided funding for this City expansion of municipal water service to address a public health and safety concern. This easement will allow access for City crews to maintain and operate the water supply system throughout the Driftwood Mobile Home Park. DISCUSSION The Public Utility Easement is a 16.0 feet wide easement for the City -owned 12- inch and 6 -inch diameter water mains located within parcels 1, 2, & 3 of the Driftwood Mobile Home Park. The easement also provides a radius of 5 feet around all City -owned fire hydrants, air release valves & water boxes, and includes a 10.0 feet wide easement for all water service lines that extend from the main to the meter. This Public Utility Easement provides a permanent easement and right -of -way to construct, reconstruct, operate, and maintain a domestic water public utility. Agenda Item Review: City Administrator _x_ City Attorney _x_ Finance _x_ Honorable Mayor and City Council August 8, 2011 Page 2 FINANCIAL IMPACT There is no cost to the City for this Public Utility Easement since it was donated by the property owner. ATTACHMENTS: A copy of the properly signed Public Utility Easement document is attached. 91 AFTER RECORDING RETURN TO: Woodburn City Recorder City of Woodburn 270 Montgomery Street Woodburn, OR 97071 CITY OF WOODBURN, OREGON PUBLIC UTILITY EASEMENT Western Sage Management, Inc., GRANTOR, grants to the CITY OF WOODBURN, OREGON, hereinafter called CITY, a permanent easement and right -of- way, including the permanent right to construct, reconstruct, operate, and maintain a domestic water public utility on the following described land: See attached Exhibit `A" Legal Description of Permanent Easement and attached Exhibit "B" Sketch for Legal Description of Permanent Easement which are by this reference incorporated herein GRANTOR reserves the right to use the surface of the land for any purpose that will not be inconsistent or interfere with the use of the easement by CITY. No building or utility shall be placed upon, under, or within the property subject to the foregoing easement during the term thereof, however, without the written permission of CITY. Upon completion of the construction, CITY shall restore the surface of the property to its original condition and shall indemnify and hold GRANTOR harmless against any and all loss, cost, or damage arising out of the exercise of the rights granted herein. The true consideration of this conveyance is zero ($0.00), and other valuable consideration, the receipt of which is acknowledged by GRANTOR. GRANTOR covenants to CITY that GRANTOR is lawfully seized in fee simple of the above- granted premises, free from all encumbrances and that GRANTOR and their heirs and personal representatives shall warrant and forever defend the said premises and every part thereof to CITY against the lawful claims and demands of all persons claiming by, through, or under GRANTOR. Public Utility Easement Page 1 of 4 92 DATED this day of L y J 2011, Title CORPORATE ACKNOWLEDGEMENT STATE OF , County of ) ss. The foregoing instrument was acknowledged before me this day of 2011 by as of Western Sage Management, Inc., a corporation and the foregoing instrument was signed and sealed on behalf of said corporation by authority of its Board of Directors; and each of them acknowledged said instrument to be its voluntary act and deed. NOTARY PUBLIC FOR My Commission Expires: City of Woodburn 270 Montgomery Street Woodburn, OR 97071 -�- Ath-a4---d 7 /s at Western Sage Management 3215 Kalmis St San Diego, CA 92104 Accepted from Western Sage Management, Inc. on behalf of the City of Woodburn after authorization by its City Council on , 20 Date City Recorder: Christina Shearer Public Utility Easement Page 2 of 4 93 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT = ._ State of California P County of T t � l Casa personally appeared before me, , HOe Insert Nara and i tfe eS er Name(s) V1aca Nctary Seal Above who proved to me on the basis o atisfactory evidence to be the persorwhose namWi 'are subscribed to the e thin instrument and acknowl ed to me that l IhP-y executed the me i is it authorized capacity N, and that by ii /Ngf7 eir signatureN on the instrument tNe person'.J, or the entity upon behalf of which the person(c�acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct_ WITNESS my hand and official seal. Signature 4 Signal a 1 . Clary P ,7IOG OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and rea ttachment of this form to another document. Description of Attached Document T itle or Type of Docurnent: ` -,6'- Document Date: C r i Number of Pages: - Signer(s) Other Than Named Above: Capacity(ies) by Signer(s) Signers Name: G Individual Corporate Officer — Title(s): ❑ Partner — El Limited ❑ General ❑ Attorney in Fact LD Trustee Top of thumb here Il Guardian or Conservator i] Other: Signer is Representing: Signer's Name: Individual ❑ Corporate Officer --- Title(s): ❑ Partner — ❑ Limited C. General l:. . El Attorney in Fact Q Trustee Ton of thumb here ❑ Guardian or Conservator C Other: Signer Is Representing: _ - ■-:; �: _<,_ _ t-:. _ .; _ - - _ �,"=c, _ T �" a _ _ _ � -;.- _ _ mac. � - vc:, _ - mac.— - _ - - �:;, �� 02 Nabonal Notary Assmawn • 9350 De Sal® Ave-. P.o. Bm 2402 • ChaSwarttt, CA 91313-2402 - www.NatiataJNoMryorg (tern 45967 Reorder call7d3 -Ree 1- 800497'6-6827 4 JtNNIFER LYtdDON ,'' __ Commission # 1 665902 a '� Z Notary Pub11c - Calibrnia Z "" `% 6 S Diego County r My Comm. Expires Oct 2, 2013 V1aca Nctary Seal Above who proved to me on the basis o atisfactory evidence to be the persorwhose namWi 'are subscribed to the e thin instrument and acknowl ed to me that l IhP-y executed the me i is it authorized capacity N, and that by ii /Ngf7 eir signatureN on the instrument tNe person'.J, or the entity upon behalf of which the person(c�acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct_ WITNESS my hand and official seal. Signature 4 Signal a 1 . Clary P ,7IOG OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and rea ttachment of this form to another document. Description of Attached Document T itle or Type of Docurnent: ` -,6'- Document Date: C r i Number of Pages: - Signer(s) Other Than Named Above: Capacity(ies) by Signer(s) Signers Name: G Individual Corporate Officer — Title(s): ❑ Partner — El Limited ❑ General ❑ Attorney in Fact LD Trustee Top of thumb here Il Guardian or Conservator i] Other: Signer is Representing: Signer's Name: Individual ❑ Corporate Officer --- Title(s): ❑ Partner — ❑ Limited C. General l:. . El Attorney in Fact Q Trustee Ton of thumb here ❑ Guardian or Conservator C Other: Signer Is Representing: _ - ■-:; �: _<,_ _ t-:. _ .; _ - - _ �,"=c, _ T �" a _ _ _ � -;.- _ _ mac. � - vc:, _ - mac.— - _ - - �:;, �� 02 Nabonal Notary Assmawn • 9350 De Sal® Ave-. P.o. Bm 2402 • ChaSwarttt, CA 91313-2402 - www.NatiataJNoMryorg (tern 45967 Reorder call7d3 -Ree 1- 800497'6-6827 EXHIBIT "A" Grantor: Site Address: Parcel No. i Property ID No.: Map Tax Lot No.: Parcel No. 2 Property ID No.: Map Tax Lot No.: and Property ID No.: Map Tax Lot No.: Parcel No. 3 Property ID No.: Map Tax Lot No.: Legal Description of Permanent Easement Western Sage Management, Inc. 612 North Cascade Drive, Woodburn, OR 97071 R106691 052W12DD 00600 R106685 052W12DD 00400 R106686 052W12DD 00500 R106684 052W12DD 00200 An easement on Grantor's Property described as Parcels 1, 2 and 3 in Reel 2140, Page 44, Records of Marion County, Oregon, said tract of land being located in the Southeast Quarter of Section 12, Township 5 South, Range 2 West, Willamette Meridian, Marion County, Oregon; the easement being more particularly described as follows: A strip of land 16 feet wide, 8 feet lying on each side of the City -owned 12 -inch and 6- inch diameter water mains located on the above - described tract as shown in Exhibit "B ", a radius of 5 feet around all City -owned fire hydrants, air release valves, and water meter boxes, and a strip of land 10 feet wide, 5 feet lying on each side of all connecting piping between these City -owned facilities and the above - described mains. Public Utility Easement Page 3 of 4 95 EXH I B I T II SKETCH FOR LEGAL DESCRIPTION OF PERMANENT EASEMENT MAP TAX LOT NO. SCALE: 052W12DD050O � J 1 WATER MAINS (TYPICAL) - I WATER SERVICES (TYPICAL) r r r 1 �-- PARCEL/ 2 j i ; r r PARCEL 3 n I - I PARCEL I JJ ! 1 r x � � I t r rt a PARCEL 2 n MAP TAX LOT N0. MAP TAX LO7 NO 052W12DD060a D52W12DD0200 MAP TAX LOT NO. E 052W12DD0400 NOTICE N C ' /2 r� v i n IF THIS BAR DOES NOT MEASURE I" THEN DRAWING IS i NOT TO SCALE I 9. I oOBuR August 8, 2011 TO: Honorable Mayor and City Council through City Administrator In Capacity as Local Contract Review Board FROM: Dan Brown, Public Works Director SUBJECT: Award of Contract for Biosolids Handling Services RECOMMENDATION The City Council, as Local Contract Review Board, delegate authority to the City Administrator to accept the best proposal submitted via a Request- for - Proposals (RFP) process and award a five -year contract for the removal of biosolids from the Wastewater Treatment Plant Facultative Sludge Lagoons. BACKGROUND Currently, Woodburn operates two Facultative Sludge Lagoons. Both lagoons are nearing their holding capacity. Councilors may recall a previous update provided to the City Council in July of 2010 (see attached Exhibit A). Unfortunately, our sludge lagoons have been accumulating biosolid material for almost 12 years, pushing lagoon storage capacity to its maximum limit. In addition, the volume of sludge has exceeded the poplar tree farm's ability to treat. As a result, the accumulation of sludge has decreased the lagoon's ability to meet our discharge standards per our DEQ permits. Councilors should also note that this project is consistent with DEQ's Mutual Agreement Order, which obligates the City to complete this project in a timely manner. In preparation of this project, the City applied for and received all required DEQ sludge removal and land application permits, which are now in place. Under DEQ's rules, the annual seasonal construction window for sludge land application ends effective October 1. In addition, the City has identified approximately 1000 acres of agricultural properties to land apply the sludge, which have also been approved by DEQ. Agenda Item Review: City Administrator _x_ City Attorney _x Finance 97 Honorable Mayor and City Council August 8, 2011 Page 2 DISCUSSION Due the the City Council's historical cancellation of the second meeting in August, and the need to award this contract in time to allow sufficient sludge removal and land application to October 1, staff is asking for authorization to award and enter into a contract prior to the September 12, 2011 Council meeting. Staff's concerns are that if a contract is not awarded in August, there may be insufficient time to mobilize and remove enough biosolids this year to achieve our goal. Also, failure to complete this project in 2011 could mean a DEQ imposed moratorium on septic tank waste haulers - and the associated loss of revenue. The loss of sludge storage capacity also limits the Wastewater Treatment Facilities ability to store effluent and respond to high flow conditions. FINANCIAL IMPACT The estimated cost for the removal of the biosolids over the five -year contracted period is estimated at between $2 and $2.5 million with an annual expenditure estimated between $350,000 and $500,000. The Wastewater Treatment Plant Construction Fund can fund the 1St year of the sludge removal project up to $500,000. This past May (201 1) the City Council authorized the issuance of Sewer Revenue Bonds to fund the continuation of treatment plan improvement (including the sludge removal) as well as refinancing our existing loans. The sale of council approved bonds will occur at the time of the contract award. There are sufficient funds in the Sewer Construction Fund 465 to bridge the period of time from contract award until revenue bonds are issued. ATTACHMENTS: Exhibit A ai Exhihit A From the July 2010 E -Blurb Summary- Biosolids Removal & Disposal Update Biosolids are a by- product of our wastewater treatment system. They accumulate in the Facultative Sludge Lagoons at the Wastewater Treatment Facility. Public Works has identified that past maintenance practices did not dredge the biosolids on a continuous basis and the Facultative Sludge Lagoons filled with biosolids to a point where the lagoons could no longer function properly. Public Works did purchase a suction dredge that is designed to maintain the lagoons. However, this maintenance dredge does not have the capacity to remove over 10 years of accumulated biosolids. The lagoons will need to be dredged by a high volume dredge. Additionally, the City's poplar trees cannot process the volume of biosolids generated by the lagoon dredging. Public Works is currently working with Agri - business agent and farmer to get farm land permitted through DEQ to receive the biosolids generated by the lagoon dredging. The Wastewater Facilities Plan identified that bio -solid production would exceed the acreage available for poplar tree expansion. The poplar tree acreage is actually sized by the treatment facility need to meet the July /August ammonia discharge limitations and additional biosolids utilization capacity will be obtained through contract hauling for land application to other permitted sites. The City owned McNulty property has been submitted for DEQ Land Application site authorization for routine maintenance applications. The area requested for biosolids land application is approximately 27 acres. The annual application rate estimated to be 24 to 78 dry tons /yr or 0.17 to 0.55 million gallons /yr. Additionally, Public Works is currently revising the Biosolids Management Plan for submittal to DEQ that will provide the following updates: ✓ Amend the plan to be consistent with DEQ's December 2005 Internal Management Directive Implementing Oregon's Biosolids Program (DEQ, 2005). ✓ Update the description of liquid and solid unit processes providing details associated with capital improvements made since last biosolids management plan. ✓ Describe the dewatering and contract biosolids hauling programs that Woodburn intends to implement during the next permit cycle. ✓ Update nitrogen accounting procedures and agronomic rate assumptions utilizing DEQ recommended reference documents. ✓ Include all new land application areas within the program. In addition, Public Works issued a Request for Proposals (RFP) for permitting land for biosolid application last March. The RFP identified the need for obtaining a Biosolids Land Application Permit for approximately 1,000 acres of property within a 25 mile radius of the Treatment Plant. The selected respondent is required to locate, obtain conditional agreement with owner, conduct soil sampling, mapping, and prepare permit application to DEQ. The consultant has located a property within 20 miles of the treatment plant. The permit application must be reviewed and approved by DEQ. Approval process requires public notice. The City currently has two Facultative Sludge Lagoons that currently are full of approximately 8,000,000 pounds of biosolid material. Public Works is currently preparing an RFP to dredge; haul and land apply the removed biosolids off -site. The contract will be a four to five year contract removing approximately 1,500,000 to 2,000,000 pounds per year until the lagoons are restored to a maintainable level. The adopted Capital Improvement Program for the Wastewater Treatment Facility has $500,000 identified over the next four years to perform the corrective maintenance dredging, hauling, and land disposal of the biosolids. Recurring biosolid maintenance thereafter is estimated at $150,000 per year. 100 CITY OF WOODBURN CITY COUNCIL SPEAKER CARD 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. NAME: CC,K, SrGi_4 PHONE # 67b1)380 - Stc, -?} ADDRESS: 02 (e C c7 /-- AGENDA DATE: 8g/l ( AGENDA ITEM #: COMMENTS: C:, ,., j1 * ,� -- — u (.1 try, TrzaSs Q 6S ,�J�. flrn 7Z) 3. 4 Di 0 c S i vA3 FOR OFFICE USE ONLY: Follow -up: