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10-08-12 Agenda KF,M CW ATHRYN IGLEYAYOR ITY OF OODBURN DP,CW1 ICK UGHOUNCILOR ARD J.MS,CWII EL CHMIDTOUNCILOR ARD CCA PMC,CWIII ITYOUNCILGENDA ETER CALLUMOUNCILOR ARD JC,CWIV AMES OXOUNCILORARD FL,CWV RANK ONERGANOUNCILOR ARD O8,2012–7:00.. CTOBERPM EM,CWVI RIC ORRISOUNCILOR ARD CHCC–270MS ITY ALL OUNCIL HAMBERS ONTGOMERY TREET 1.CALL TO ORDER AND FLAG SALUTE 2.ROLL CALL 3.ANNOUNCEMENTS AND APPOINTMENTS Announcements: None. Appointments: None. 4.COMMUNITY/GOVERNMENT ORGANIZATIONS A.Chamber of Commerce B.Woodburn School District C.Woodburn Downtown Association 5.PROCLAMATIONS/PRESENTATIONS Proclamations: None. Presentations: A.Alternative Route Plan 6.COMMUNICATIONS None. – This allows the public to introduce items for 7.BUSINESS FROM THE PUBLIC Council consideration not already scheduled on the agenda. **Habrá intérpretes disponibles para aquéllas personas que no hablan Inglés, previo acuerdo. Comuníquese al (503) 980-2485.** October 8, 2012Council Agenda Page i –Items listed on the consent agenda are considered 8.CONSENT AGENDA 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 September 24, 20121 Recommended Action: Approve the minutes. B.Planning Commission minutesof September 13, 20127 Recommended Action:Accepttheminutes. C.WoodburnRecreation and Park Board minutesof September 18, 10 2012 Recommended Action:Accept the minutes. 9.TABLED BUSINESS None. 10.PUBLIC HEARINGS A.Rate Adjustment for United Disposal Service, Inc.13 Recommended Action:It is recommended the City Council conduct a public hearing pursuant to Woodburn Ordinance No. 2460 (solid waste management ordinance) to examine and consider Allied Waste’s revised rate schedule and corresponding request for a rate increase. –Members of the public wishing to comment on items of 11.GENERAL BUSINESS 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. A.Council Bill No.2908-A Resolution Granting United Disposal 73 Service, Inc. an Adjusted Rate Schedule for Providing Solid Waste Service within the City of Woodburn and Repealing Resolution 1973 Recommended Action:After considering all testimony and documents provided during the hearing, staff recommends approval of Allied Waste’s revised rate schedule and requested rate increase based on the justifications set forth below. Staff has prepared a proposed resolution (see Attachment A) authorizing a rate increase for Allied Waste. October 8, 2012Council Agenda Page ii B.Council Bill No.2909-A Resolution Granting the Application in 78 Case Numbers SUB 2012-01, VAR 2012-02, and EXCP 2012-01, Adopting Findings and Conclusions, and Imposing Conditions Recommended Action:Adopt the Resolution granting the application in case numbers SUB 2012-01, VAR 2012-02, and EXCP 2012-01. C.Council Bill No.2910A ResolutionAuthorizingthe97 - Establishmentof a Health Reimbursement Arrangement/Voluntary Employees’ Beneficiary Association (“HRA VEBA”) Plan Recommended Action:Adopt the resolution authorizing the establishment of a HRA VEBA plan. D.Valley Development Initiatives Sub-Grant Agreement100 Recommended Action:Authorize the City Administrator to sign an Intergovernmental Agreement (IGA) with the Mid-Willamette Valley Council of Governments (COG), to administer the 2012 Community Development Block Grant (CDBG) for low-income housing rehabilitation. – These 12.PLANNING COMMISSION OR ADMINISTRATIVE LAND USE ACTIONS are Planning Commission or Administrative Land Use actions that may be called up by the City Council. A.Director’s approval of Design Review 2012-01, located at 2175 129 N. Pacific Highway : Recommended ActionNo action is recommended. This item is placed before the Council for information purposes in compliance with the Woodburn Development Ordinance. The Council may call up this item for review if it desires. B.Planning Commission approval of VAR 2012-04, located at 1542 131 Mt. Hood Avenue Recommended Action:No action is recommended. This item is placed before the Council for information purposes, in compliance with the Woodburn Development Ordinance. The Council may call up this item for review if it desires. 13.CITY ADMINISTRATOR’S REPORT 14.MAYOR AND COUNCIL REPORTS October 8, 2012Council Agenda Page iii 15.EXECUTIVE SESSION To conduct deliberations with persons designated by the governing body to carry on labor negotiations pursuant to ORS192.660(2)(d). (Pursuant to ORS 192.660 (4), representatives of the news media shall be allowed to attend executive sessions other than those executive sessions held under ORS 192.660 (2)(d) relating to labor negotiations.) 16.ADJOURNMENT October 8, 2012Council Agenda Page iv COUNCIL MEETING MINUTES SEPTEMBER 24, 2012 DATECOUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY 0:00 OF MARION, STATE OF OREGON, SEPTEMBER 24, 2012 CONVENED The meeting convened at 7:00 p.m. withMayor Figley presiding. ROLL CALL 0:00 Mayor FigleyPresent 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, Public Works Director Brown,Police Chief Russell, Police Captain Alexander,Human Resources Director Hereford, Economic and Development Director Hendryx, Community Services Director Row,Associate Planner Dolenc,Assistant Recorder Pierson COMMUNITY/GOVERNMENT REPORTS 0:00 A.Woodburn School District – Superintendent Bautista announced that Homecoming would be taking place on October 19. He noted that plans for the movement of the modules will be taking place on October 22 and thanked City staff for their assistance. He also let the City Council know that the stripes will be added to the track at the high school in 2-3 weeks. BUSINESS FROM THE PUBLIC 0:02 Phillip Hand, owner of the complex at Cascade and Hwy 214,stated that he hasthree different issues in regards to theinterchange project. The first is the undergrounding of utilities. He stated that at the meetings he attended and on the documents he receiveditsaid there was going to be undergrounding of utilities. He then found out from ODOT that that was not the case and that it was part of the plan but the City decided not to do it. The second item he has issue with is the planter strip and wants to know who is going to take care of it. He also does not like that the sidewalks are going to be up against his building. The third issue is the planned divider that will be going down 214. He stated that he would appreciate any input the City Council could give to ODOT on this. City Administrator Derickson explained that the undergrounding of utilities came in at about two million dollars and that the City’s money and ODOT’s money is unable to support this. He also noted that the Citizen Advisory Committee briefly touched on the issue but decided that that could happen at a future date. Frank Lonergan asked if ODOT helped out in Wilsonville and City Administrator Derickson was not sure how they paid for it Wilsonville but Woodburn would have to develop a Page 1 - Council Meeting Minutes, September 24, 2012 1 COUNCIL MEETING MINUTES SEPTEMBER 24, 2012 funding system to raise the money. Councilor Pugh stated that he thought that undergrounding was included in this plan as well and is disappointed to find out it wasn’t. Director Brown stated that he believes that with the development of Fred Meyer in Wilsonville a lot of that work was funded directly as a condition of development. He also stated that by statute ODOT does not pay for the relocation of utilities but that it is a non- reimbursable expense to PGE. Director Brown also stated that the undergrounding was a desirable option but there was never a commitment by ODOT that they would include this as part of the project. Mick DeSantis, 173 McLaughlin Dr. Woodburn, asked the City Council if the Advisory Committee recommended to them the option of not including undergrounding of utilities. Director Brown stated that the committee was striving to identify designenhancements for the gateway to Woodburn that were consistent and in the program budget. They could have gone outside of the budget but the City would be responsible for paying that. Councilor Pugh stated that he was on the Environmental Assessment Committee and that they had recommended the undergrounding of utilities. City Administrator Derickson stated that it would be better if they placed the undergrounding of utilities in after the interchange project was complete so that the project would not get delayed and it would allow the City time to generate the needed revenue. Councilor McCallum asked how long it might delay the interchange project if we wanted to add it now and City Administrator Derickson stated that he can’t say how long it would take but there would definitely be a delay because of the complexity of it. Councilor Schmidt asked how much it costs PGE to move the above ground utilities. Director Brown stated that he would have to ask PGE for their estimate and that it is a non-reimbursable cost. Councilor Schmidt stated he can’t see spending money now to move the utilities above ground only to pay $2 million down the road to move them underground. He also asked how the undergrounding of utilities was paid for on Front Street and Director Brown answered that there were nine different funding sources for that project and cost about $1.2 million per mile. Councilor Cox asked if it is the ODOT budget that is being used for aesthetic enhancements and was told by Director Brown that that was correct. Councilor Morris asked if we could just waive PGE’s franchise fee for two years as payment for putting the utilities underground and City Administrator Derickson answered that you could but then you would have a hole in your General Fund and would have to cut other services. Councilor Pugh asked how much is being spent on the addition of the widening of 214 and why can’t they cut that back. Director Brown answered that the widening is going to cost the project $21 Million in right-of-way acquisition. City Administrator Derickson stated that he believes certain requirements have changed over the years and that this leads into the planter strip question. Director Brown added that when he found out that the planter strips were a concern he asked ODOT if it would be possible to just have a curb sidewalk and stated that ODOT would not support that. He also stated that the caretaking of the planter strips was part of the overall landscaping service that was included in the Aesthetic Advisory Committee’s recommendation. Councilor Lonergan asked if we could get it in writing from ODOT that we can’t change the width of the sidewalk and Director Brown stated that he would get it in writing from them. Phil Hand wanted to clarify that he was not worried about the width of the sidewalk; he just didn’t want the planter strip and didn’t want Page 2 - Council Meeting Minutes, September 24, 2012 2 COUNCIL MEETING MINUTES SEPTEMBER 24, 2012 it next to his building. Councilor Pugh stated that he does not except not having the utilities underground. Councilor McCallum added that he would like to see utilities underground as well especially for safety reasons but questioned whether we have the money to do that and how much of a time delay it will cause and he doesn’t want to get the money from the General Fund to pay for it. Councilor Morris asked how far down 214 the interchange maintenance will cover and Director Brown stated it would cover from Willow to Broughten. Councilor Cox asked how much of an inconvenience the median will be and City Administrator Derickson answered that there is a concept and that the Fire Department, Woodburn Ambulance and Woodburn Police are all working on it. Councilor Cox added that he is more concerned about the citizens not being able to get where they need to go. Mayor Figley stated that she has concerns about the utility poles on Evergreen Rd. and asked if there would be any changes to them and Director Brown answered that the intersection will be bigger and the poles will be placed further back and that Country Club will also be widened. City Administrator Derickson added that this is an ODOT project and while we can recommend things we don’t have control over this project. Councilor Morris asked if it will look the same orif it will look more modern and Director Brown answered that yes, it will look more modern and will complement the design theme of the interchange. Councilor Pugh would like to sit down and see if there isn’t a way we could get these utilities underground and Director Brown said he would advocate on their behalf. City Administrator Derickson stated that he received a question about whether the City is being forced to build 50 electric charging stations for the transit center and answered that they are not required to do that. Councilor Lonergan stated that since the Woodburn Fire Department and Woodburn Ambulance were in the audience tonight, he would like to hear from them to see if there is something we need to talk to ODOT about in regards to access off Cascade. Paul Iverson, with the Woodburn Fire District, answered that they have been working with ODOT on these issues. Mick DeSantis added that he is upset that the City Council didn’t know there was not going to be undergrounding. Councilor Pugh stated that those are decisions made by ODOT and that they don’t communicate very well. Mr. DeSantis added that ODOT has said that it is the City who wants the sidewalks. He told the Council that they have an impact on these Pugh/Schmidt decisions. … have staff provide a written report on what the options are for getting the utilities underground, removing the planter strips, and options for the median and then,if needed,have staff put together a meeting with ODOT and PGE. The motion passed 5-1, with Councilor Cox voting no. Lucien Klein,500 Marshall Street, wanted clarification on the motion. He would like to see all three issues raised on the agenda for the next council meeting and stated that hebelieves you have directed staff to come back with ideas on them. Mayor Figley answered that we will be moving forward with a discussion with ODOT and PGE on these issues although it may not be ready by the next Council meeting. CONSENT AGENDA 1:11 A.Woodburn City Council minutes of September 10, 2012 B.Woodburn City Council Executive Session minutes of September 10, 2012 C.Woodburn Planning Commission minutes of August 9, 2012 Page 3 - Council Meeting Minutes, September 24, 2012 3 COUNCIL MEETING MINUTES SEPTEMBER 24, 2012 D.Woodburn Recreation and Park Board minutes of July 17, 2012 E.Crime Statistics through August 2012 McCallum/Pugh … approve the consent agenda as presented. Motion passed unanimously. PUBLIC HEARING 1:12 KALUGIN ESTATES SUBDIVISION, LOCATED SOUTH OF HARDCASTLE AVENUE, BETWEEN DUNN COURT AND ORCHARD LANE Mayor Figley declared the hearing open at 8:12 pm for the purpose of hearing public input on the Kalugin Estates Subdivision, located South of Hardcastle Avenue, between Dunn Court and Orchard Lane. Mayor Figley declared that she did drive by the property in question. Councilor McCallum declared that he spoke with some Councilors and staff but no decisions were made. Councilor Morris declared that he lived on Hardcastle and Councilor Cox declared that he also spoke with staff and fellow Council Members in regards to this issue. Don Dolenc, Associate Planner read the public hearings statement and provided a staff report. Troy Plum, P.O. Box 374, Corvallis, provided background information on the land use application. Mayor Figley asked if there were proponents to the application and mentioned a letter from Planning Commission Chair Bandelow in support of the application was received and placed in the record. Charlie Piper, Planning Commission vice chair provided testimony in support of the application. Councilor McCallum asked if he knew the inventory of houses like this in Woodburn and Mr. Piper answered that he did not know and feels that is Mr. Kalugin’s problem. Councilor Morris asked Mr. Kalugin if this will be a slow process or all at once and Lazar Kalugin, 11220 Portland Rd. NE, answered that he was planning on building two at a time. No members of the public wished to speak in opposition to the application. Mayor Figley declared the hearing closed at 8:52 pm. Councilor McCallum stated that he is concerned with the number of variances on this application and asked if any of the Councilors that were previously on the Planning Commission had ever come across something like this before. Councilor Lonergan answered that he didn’t remember anything like this coming up while he was on the Planning Commission and added that he is also concerned with the number of variances on this application. Councilor Pugh stated that he sees that some good planning went into this and is a little worried about the size of the lots but that we need something like this here. Councilor Cox stated that he was on the Planning Commission for six years and never saw anything comparable to this. He added that he understands that this is a unique piece of property and a unique problem. He stated that he has not heard anything significant about why the variances are neededand that all he is really hearing is that it is not economically feasible to do it the way he was approved to do it a couple of years ago and that’s not one of the reasons we grant a variance. He stated that he just cannot support this application. Councilor Pugh stated that there is a need here and that all properties shouldn’t have this amount of variances but there is a need for these houses and he supports the application. Councilor Morris sees this as a positive thing; instead of a big vacant lot it will have affordable housing on it. He stated that he supports the application. Councilor Schmidt agreed that having these houses are better than the vacant lot that is there now. He added that there are too many rules and regulations. Councilor Morris asked what Page 4 - Council Meeting Minutes, September 24, 2012 4 COUNCIL MEETING MINUTES SEPTEMBER 24, 2012 the conditions are that we would normally accept a variance under. Councilor Schmidt stated that he will vote yes. City Attorney Shields read the section of the WDO that Schmidt/Pugh addresses variances. …approve the Kalugin Estates Subdivision, located South of Hardcastle Avenue, Between Dunn Court and Orchard Lane and that staff come back with an Ordinance reflecting the decision. On roll call the vote was 3-3 with Councilors Lonergan, McCallum and Cox voting nay. Mayor Figley voted aye to break the tie and pass the motion. COUNCIL BILL NO. 2904- AN ORDINANCE GRANTING WOODBURN 2:23 AMBULANCE SERVICE, INC., A NON- EXCLUSIVE FRANCHISE TO OPERATE AN AMBULANCE SERVICE IN THE CITY OF WOODBURN; DEFINING TERMS AND CONDITIONS OF SAID FRANCHISE; REPEALING ORDINANCE 2324; DECLARING AN EMERGENCY AND SETTING AN EFFECTIVE DATE. McCallum introduced Council Bill 2904. Assistant Recorder Pierson read the two readings of the bill by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared Council Bill No. 2904 duly passed. COUNCIL BILL NO. 2905- AN ORDINANCE AMENDING ORDINANCE 2307 (THE 2:25 WILLAMETTE BROADBAND, LLC/ WAVEDIVISION VII, LLC CABLE TELEVISION FRANCHISE) TO EXTEND SAID FRANCHISE ORDINANCE UNTIL DECEMBER 31, 2012 AND DECLARING ANEMERGENCY.McCallum introduced Council Bill No. 2905.Assistant Recorder Piersonread the two readings of the bill by title only since there were no objections from the Council. Councilor Pugh stated that he does not understand what the negotiations are and City Administrator answered that these are agreements that we need to work through and that the issues involved with the communications franchises are very specialized and technical. On roll call vote for final passage, the bill passed unanimously. Mayor Figleydeclared Council Bill No. 2905 duly passed. COUNCIL BILL NO. 2906 -AN ORDINANCE AMENDING ORDINANCE 2291 (THE 2:28 DATA VISION COMMUNICATIONS/DATA VISION, LLC FRANCHISE) TO EXTEND SAID FRANCHISE ORDINANCE UNTIL DECEMBER 31, 2012 AND DECLARING AN EMERGENCY.McCallum introduced Council Bill 2906. Assistant Recorder Pierson read the two readings of the bill by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared Council Bill No. 2906 duly passed. COUNCIL BILL NO. 2907- A RESOLUTION AUTHORIZING EXECUTION OF A 2:29 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF WOODBURN AND THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES (AFSCME) LOCAL 642 FOR THE CONTRACT YEAR BEGINNING JULY 1, 2012 AND ENDING JUNE 30, 2015 McCallum introduced Council Bill 2907. Assistant Recorder Pierson read the bill by title Page 5 - Council Meeting Minutes, September 24, 2012 5 COUNCIL MEETING MINUTES SEPTEMBER 24, 2012 only since there were no objections from the Council. Mayor Figley thanked the negotiation team on the City side and thanked the AFSCME employees for their dedication and the maturity they brought to the negotiations. On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared Council Bill No. 2907 duly passed. LEGION PARK GRANT AGREEMENT Lonergan/Morris… Authorize the City 2:31 Administrator to enter into the enclosed Local Government Grant Agreement with the Oregon Parks and Recreation Department. Councilor McCallum asked about the plans for Legion Park and Director Row answered that it is a recognized site for many play areas. Councilor Morris asked if it is going to be a play structure and Director Row answered that it is going to be very natural looking play area and archeologically themed. Councilor Lonergan asked what the total cost of the project is and Director Row answered that it is $74,000 and a lot of that is contributed to staff time and volunteer labor. The motion passed unanimously. CITY ADMINISTRATOR’S REPORT 2:39 . The City Administrator had nothing to report MAYOR AND COUNCIL REPORTS 2:39 Councilor Pugh asked what the status of the UGB case is and City Attorney Shields answered that it is in the Court of Appeals and there is no timeline in setting this case for argument. Councilor McCallum thanked the Police Department for their great work. Councilor Schmidt also wanted to thank the Police Department for their work.. Councilor Morris thanked the Police Department for their efforts and getting these crimes solved quickly. ADJOURNMENT 2:42 McCallum /Lonergan …meeting be adjourned.The motion passed unanimously. The meeting adjourned at 9:42 p.m. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Heather Pierson,Assistant CityRecorder City of Woodburn, Oregon Page 6 - Council Meeting Minutes, September 24, 2012 6 7 8 9 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes September 18, 20125:30p.m. 1.CALL TO ORDER The meeting and was called to order at 5:30 p.m. 2.ROLL CALL Position I Brent Glogau, Member (12/13) Present Position II (Student) Sofie Velasquez (12/12) 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) Absent Position VI Ardis Knauf (12/12) Present Position VII Tony Waite (12/12) Absent 3.APPROVAL OF MINUTES Joseph Nicoletti/Brent Glogau- Motion to approve the May 8, 2012 minutes and the July 17, 2012 minutes as amended. The motion passed unanimously. 4.BUSINESS FROM AUDIENCE None. 5.OLD BUSINESS 6.NEW BUSINESS June 12 Park Tour Recap The Board reviewed the compiled comments regarding the annual park tour, which took place on June 12. Legion Park Playground Project Jim informed the Board that we were awarded the grant to install the archeologically themed play area at Legion Park. We plan to work with the high schools and the Kiwanis Clubs on the project. It was suggested that we add some benches at the playa area for parent seating. 2011-2012 Aquatic Center Financials Jim and Kristin discussed the financial performance of the Aquatic Center in 2011- 2012 and reviewed the final (unaudited) fiscal year numbers. 7.DIVISION REPORTS Aquatics – Kristin Graybeal Kristin updated the Board on the following items: Spa Jets Pump Motor now has a timer on it, which will help reduce cost Water slide pump & spa jet pump are repaired and running again Page 1of 3 10 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes September 18, 20125:30p.m. New staff scheduling software system launched Rescue report statistics comparison to last year Silverton Health sponsorship possibility th 4 Grade Lessons underway (Kiwanis and Woodburn Proud) $4,074 in scholarships awarded calendar to date Recreation – Stu Spence Stu updated the Board on the following items: th Youth Sports - Youth Soccer games began last Saturday, September 15with 313 players, 1 more than last year. ASC Prices - Prices increased this year for the after school program $350 per year from $300 this year (if paid in full) or $95 per quarter ($380) from $100 per trimester ($300) this year. Four families opted to pay $500 to donate the extra to sustaining the program. Overall numbers are nearly the same. 11-12 Fall and All year registrations: 323 compared to 300 this year. This program is traditionally very price sensitive, when prices have gone up in the past, numbers have dropped. YAB - About to kick off their fall recruitment at tomorrow’s meeting. They are looking to gain more members to accomplish more projects in 12-13. AmeriCorps - We have successfully filled our AmeriCorps volunteer position with Esme Rios. Esme grew up in Gervais, then earned her degree in criminal justice from WOU. We are very excited to have her on board working on drug/gang prevention, literacy, and mentoring the youth advisory board. Most of her work will be done at the after school middle school sites along with the Boys & Girls Club Teen Center. Boys & Girls Club - The Unit Board is scheduled to meet tomorrow to discuss and finalize their program plan moving forward. Proposed plans are to focus on middle and high school programming. Parks and Facilities – Jim Row Jim discussed the large independent August 19 special event at Centennial Park. The event ran from noon –11:00 PM on a Sunday and drew an anticipated 3,000 people. The greenway culvert is just about to be installed now that the Oregon Department of State Lands (DSL) and the U.S. Army Corps. of Engineers have approved our wetland removal/ fill permit amendment. The Fiesta took place on August 3-5 this year. Unfortunately, attendance was down this year. Saturday’s 100 degree temperature certainly didn’t help. This Page 2of 3 11 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes September 18, 20125:30p.m. was the second of the Chamber’s 3-year commitment to leading the Fiesta. Next th year will be the 50anniversary of the event. 8.FUTURE BOARD BUSINESS Next meeting will be on October 9. 9.BOARD COMMENTS 10.ADJOURNMENT The meeting was adjourned at 6:50 PM ___________________________ ________________________________ Joseph Nicoletti, Board Secretary Jim Row, Community Services Director Date_________________ Date___________________ Page 3of 3 12 Agenda Item October 8, 2012 TO:Honorable Mayor and City Council FROM:Scott Derickson, City Administrator SUBJECT: Rate Adjustment for United Disposal Service, Inc. : RECOMMENDATION It is recommended the City Council conduct a public hearing pursuant to WoodburnOrdinance No. 2460 (solid waste management ordinance) to examine and consider Allied Waste’s revised rate schedule and corresponding request for a rate increase. After considering all testimony and documents provided during the hearing, staff recommends approval of Allied Waste’s revised rate schedule and requested rate increase based on the justifications set forth below. Staff has prepared a proposed resolution (see ) authorizing a rate increase Attachment A for Allied Waste. : BACKGROUND AND DISCUSSION Allied Waste recently submitted a proposed rate increase to City staff. The proposed increase equates to a3.2% increase in Allied Waste’soverall revenue. For your review, a copy of Allied Waste’s proposal is attached to this Agenda Item (see ). Attachment B The proposal satisfies the ordinance requirement for a complete, revised rate schedule and documented evidence of actual or projected increased operating costs. An Allied Waste representative will attend the City Council meeting to answer any questions you might have. In November of 2009, the City Council adopted Ordinance 2460 (see ), which put into place a new Solid Waste Franchise Agreement. Attachment C Section 4 of the agreement addresses rates and criteria for increasing refuse collection rates. In short, the agreement provides that the Franchisee (Allied Waste) shall have the right to charge and collect reasonable compensation from those to whom it furnishes franchised services. Councilors should also note that the last approved rate adjustment for Allied Waste was a 6.6% increase, which was approved in June 2010 based on Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance __x___ 13 Honorable Mayor and City Council October 8, 2012 Page 2 increased operatingexpenses and falling commodity prices. The City also approved a 4% increase in 2006 and an 8% increase in 2005. Under Section 4, the Council may approve or deny a rate increase based upon, but not limited, the following criteria: Increases in operating or capital costs; Increases in City population; Extension of City boundaries; Increase of intensive residential, commercial or industrial development within the City; Changes in solid waste or recycling technology; Changes in regulatory requirements; Inability of Franchisee to adequately handle increased needs for said service; The rates in other cities for similar services; and, The public interest by assuring reasonable rates to enable Franchisee to provide efficient and beneficial service to user of the service. Summary of Residential Rate Impacts. Allied Waste’sproposed 3.2% revenue increase is reflected over the various volumes of users. Because the 3.2% revenue increase is applied to the various user categories, which are comprised of varying numbers of accounts, the actual impact by category differs. Below is the current and proposed change to monthly residential service (thefull impact, by user category, is outlined in Exhibit B): Allied Waste of Marion County ProposedMonthlyResidential Service Rates for Woodburn CurrentProposed Monthly RateMonthly 20galcart$19.75$20.00 20galcartwithnorecycling/yardwasteservice$18.00$18.20 35galcart$22.35$22.75 65galcart$31.70$32.30 90galcart$35.80$36.50 14 Honorable Mayor and City Council October 8, 2012 Page 3 OnCall Serviceperpickup$9.10$10.00 AdditionalYardWasteCart$7.00$10.85 AdditionalRecycle Cart$0$7.00 Recycleonly$5.00$6.00 AdditionalCan,Bag,Box(no change)$5.25$6.00 ReturnforServicefee$10.50$11.00 Justification Allied Waste cites the following major factors for proposing an increase: 1)The last rate increase occurred in 2010 and was 6.6%. Since that time, costs have outpaced inflation, specifically labor and fuel costs. 2)Additionally, in 2010 the franchise fee paid by Allied Waste to the City of Woodburn increased by 2%, effectively reducing the price increase in that year by that percentage. 3)Lowering commingled recyclables, cardboard, and metal commodity pricing has reduced revenue to Allied and at times causing some recyclables to become a cost rather than an offsetting revenue, and; 4)The cost of replacing aged vehicles with newer models delivering reduced environmental impact and reduced maintenance costs. Solid waste franchises around the state of Oregon typically target a projected rate of return of 8% to 12%. The rationale behind this level of return is to recognize the capital intensive nature of the industry and the risk therein. The goal is to compensate the franchisee with an appropriate cash flow to allow for the routine purchase of replacement vehicles and containers provided to residents and businesses. After discussions withAllied Waste, I believe it is important to note that Allied Waste funds their capital replacement program via the revenues generated in their rate of return, and not as an operation expense –thus the rate of return supports the capital expenditures for the service program provided to customers. As an example, Allied Waste’s net income in 2011 was approximately $242,000. Replacement vehicles (under current pricing) range between $200,000 and $300,000. Allied Waste’s current proposal projects an annualized rate of return of 7.8% which is slightly below the 8% standard used by the City in the past. 15 Honorable Mayor and City Council October 8, 2012 Page 4 Allied Waste services just under 5,000 residential homes, approximately 750 commercial accounts, and 1800 industrial hauls annually in Woodburn. The investment in carts and containers for these customers is purchase value of the estimated at $1.4 million. Additionally, there are approximately 12 vehicles servicing the City of Woodburn today. The purchase value of the vehicle investment is approximately $3.3 million. In 2011, Allied Waste’s salaries and wages increased, on average, by 2%. According to Allied Waste, these cost-of-living adjustments were needed in an effort remain competitive in attracting and retaining talented employees. In addition, employee benefits, mostly medical insurance premiums,continue to rise at a rate higher than inflation. Commodity markets peaked in the summer of 2008. In 2011, commodity rates were stabilized and continued to remain above the lows experienced in the first quarter of 2010 but far below the peak of 2008.Current pricing is undergoing strong downward pressures. Today, the price of metal is at $230/ton versus a rate of $285/ton 18 months ago. Allied has been able to mitigate some of the falling market for metal by negotiating rates with a new metal recycler. Through negotiations with their existing cardboard recycler, Allied has been able to secure cardboard rates of $57/ton which is helping to mitigate the recent declines in the fibers markets. A year ago, Allied Waste was paid $107/ton for recycled cardboard. Allied today is paid $42/ton for commingled recycling. This material has also been hurt by the declines in the fibers market as a year ago, the value of this material was $52/ton. During the latter portion of 2010, Allied Waste replaced five aging vehicles with newer vehicles. This increases depreciation expense but will allow vehicle maintenance expense increases to partially curb the rate of inflation. Additional Consideration Allied Waste’s Statement of Income for Twelve Months Ended December 31, (see below) shows 2010 revenues of $3,485,970 with operating expenses of 2011 $2,554,934 and a gross profit of $931,036. 16 Honorable Mayor and City Council October 8, 2012 Page 5 Statement of Income Ending December 2011 2010 2011%2012Projected % 2012 Projected % 12 month % Annualized Change No Rate Change Change With Rate Change Change with Proposed Proposal * RateChange Revenue 3,485,970 3,546,714 1.7% 3,578,132 0.9% 3,600,191 1.5% 3,666,368 3.4% Cost of Operations 2,554,934 2,704,867 5.9% 2,741,842 1.4% 2,744,516 1.5% 2,744,516 1.5% GrossProfit 931,036 841,847-9.6% 836,290 -0.7% 855,675 1.6% 921,8529.5% Salaries, General and 391,896 437,931 11.7% 444,500 1.5% 444,500 1.5% 444,500 1.5% Administrative Operating Income 539,140 403,916-25.1% 391,789 -3.0% 411,174 1.8% 477,35118.2% Provision for Income Taxes215,656 161,566 -25.1% 156,716 -3.0% 164,470 1.8% 190,940 18.2% Income/ % of Revenue323,484 9.3% 242,3496.8%235,074 6.6% 246,705 6.9% 286,4117.8% * - In comparisonto 2011 actuals After provisions for taxes and personnel costs, the net income was $323,484, representing a 9.3% Return on Revenue (ROR). For 2011, revenues were $3,546,714 with operating expenses of $2,704,867 and a gross profit of $841,847. After taxes and personnel costs, their net income in 2011 was $242,349, or a 6.8% ROR. As previously discussed, Allied Waste indicates an 8% minimum ROR is standard in the industry, which is consistent with the City Council’s past dialog and rate considerations. Without a rate increase, Allied Waste is projecting flat revenues in 2012 of $3,578,132 while facing $36,975 increase estimated costs of operations, directly impacting net profits. A $6,569 increase in salaries, general expenses and administration is expected as well. Overall operating income is estimated to fall by $12,127. If the Council does not approve the proposed rate increase, Allied Waste projects a 6.6 % ROR for 2012. If approved, the new rate schedules are estimated to bring Allied Waste’s 2012 ROR to 6.9% and 7.8% in 2013. According to Allied Waste, their ROR will remain under industry standards (of 8%) regardless of the Council’s decision. Allied Waste’s was not audited. The information provided Statement of Income to the City was used as the basis for our discussions and the analysis included in this Agenda Item. Allied Waste also provided the City with a comparison summary of the rates charged in the Woodburn franchise to those in other area communities, which is included in their attached proposal. This summary shows the proposed rates for Woodburn as slightly higher in some cases, and slightly lower in others when compared to other jurisdictions. All in all, staff found the 17 Honorable Mayor and City Council October 8, 2012 Page 6 proposed rate increase places the City in a comparable position to the other communities used in the comparison. : FINANCIAL IMPACT The requested rate adjustment will increase residential rates, increasing Allied Waste overall revenue by approximately 3.2%; the average impact to residential users will range from $0.25 to $0.79 per month depending on cart size. Commercial and industrial rates will be adjusted in similar proportion, depending on use. Attachments Attachment A –Resolution Attachment B –Allied Waste Proposal Attachment C- SolidWaste Management Ordinance 2460 18 COUNCIL BILL NO. 2908 RESOLUTION NO. 2019 A RESOLUTION GRANTING UNITED DISPOSAL SERVICE, INC. AN ADJUSTED RATE SCHEDULE FOR PROVIDING SOLID WASTE SERVICE WITHIN THE CITY OF WOODBURN AND REPEALING RESOLUTION 1973 Ordinance 2460grants an exclusive franchise to United Disposal WHEREAS, Services, Inc. (“United Disposal”) to collect, transport, and convey solid waste in the City; and the City Council previously adopted Resolution 1973 which WHEREAS, established certain rates; and United Disposal has requested an adjustment to its residential WHEREAS, and commercial rates and has submitted satisfactory evidence to the City Council to justify the proposed rate schedule;and the City Council held a public hearing to receive testimony and WHEREAS, other evidence regarding the proposed rate schedule; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: That the Council finds that the rates proposed by United Section 1. Disposal are fair and appropriate under the existing franchise. In making this determination, the Council has considered the following factors pursuant to Section 4 of Ordinance 2460: (1)increases in operating or capital costs; (2) increases in City population; (3) extension of City boundaries; (4) increase of intensive residential, commercial or industrial development within the City; (5) changes in solid waste or recycling technology; (6) changes in regulatory requirements; (7) inability of Franchisee to adequately handle increased Page 1 – Council Bill No. 2908 Resolution No. 2019 19 needs for said service; (8)the rates in other cities for similar services;and (9)the public interest by assuring reasonable rates to enable Franchisee to provide efficient and beneficial service to user of the service. That the rate schedule affixed as Exhibit “1” and by this Section 2. reference incorporated herein, is approved. . The rate schedule approved in Section 2 of this resolution shall Section 3 be effective November 1, 2012. Resolution 1973is repealed effective November 1, 2012. Section 4. Approved as to form: City AttorneyDate Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Heather Pierson, Assistant City Recorder City of Woodburn, Oregon Page 2 – Council Bill No. 2908 Resolution No. 2019 20 WOODBURNRATESHEET Pick-updates: Includedwithserviceweekly: Bi-weekly: SIZEPKG PRICE 20gallon 35gallon 65gallon 90gallon AdditionalYardDebriscart: 20gallon 35gallon 65gallon 90gallon 21 WOODBURNRATESHEET SIZECOMM.EXTRA CARTTRIP(EXT) 35gallon 65gallon 90gallon CBB YardCart ExtraTrip(EXT)-OFFROUTE:1/4MONTHLYRATE+$12(roundtonearest$.05) SIZEONETWOTHREEFOURFIVEEXTRA (loose)X/WEEKX/WEEKX/WEEKX/WEEKX/WEEKTRIP 1yard 1.5yard 2yard 3yard 4yard 5yard 6yard 8yard ManualServicerate: *Cardboardavailablew/weeklyserviceforNOCHARGEEXY(extrayardage): $23/yard SIZETOTALDELIVERYDISPOSALEXY 3yard 22 WOODBURNRATESHEET SIZETOTALDELIVERYHAULDISPOSALCOMPACTORHAUL GARBAGE10yard 10yard 20yard 30yard15yard 40yard 20yard Unacceptabledropboxitems: 25yard 30yard $3.00 $4.00 $8.5040yard $14.00 $25.00 withoutN/C 23 ATTACHMENT B 24 ATTACHMENT B AlliedWasteofMarionCounty CityofWoodburn ProformaStatementofIncome ForthetwelvemonthsendedDecember31,2011,andprojected2012 Revenue3,485,9703,546,7141.7%3,578,1320.9%3,600,1911.5%3,666,3683.4% CostofOperations2,554,9342,704,8675.9%2,741,8421.4%2,744,5161.5%2,744,5161.5% GrossProfit931,036841,847-9.6%836,290-0.7%855,6751.6%921,8529.5% Salaries,GeneralandAdministrative391,896437,93111.7%444,5001.5%444,5001.5%444,5001.5% OperatingIncome539,140403,916-25.1%391,789-3.0%411,1741.8%477,35118.2% ProvisionforIncomeTaxes215,656161,566-25.1%156,716-3.0%164,4701.8%190,94018.2% Income/%ofRevenue323,4849.3%242,3496.8%235,0746.6%246,7056.9%286,4117.8% *-Incomparisonto2011actuals 25 ATTACHMENT B AlliedWasteofMarionCounty CityofWoodburn ProformaScheduleofDirectExpenses ForthetwelvemonthsendedDecember31,2011,andprojected2012 Labor476,977520,1099.0%527,9111.5%527,9111.5% 1 RepairsandMaintenance169,461170,2350.5%174,4912.5%174,4912.5% VehicleOperatingCosts148,213193,18630.3%216,56112.1%216,56112.1% 2 Facility139,561144,7663.7%146,2141.0%146,2141.0% Insurance106,294105,328-0.9%105,3280.0%105,3280.0% Disposal1,111,2541,077,539-3.0%1,077,5390.0%1,077,5390.0% 3 RecyclingPurchases35,46466,34287.1%66,3420.0%66,3420.0% 4 FranchiseFees167,479180,8678.0%180,8670.0%183,5411.5% OtherOperatingCosts28,8529,491-67.1%9,5861.0%9,5861.0% 5 Depreciation171,380237,00438.3%237,0040.0%237,0040.0% 6 2,554,9342,704,8675.9%2,741,8421.4%2,744,5161.5% 391,896437,93111.7%444,5001.5%444,5001.5% 7 Wagechanges,increasesinbenefitscostshigherthaninflation,additionalsupervisor 1 Fuelcostincreases 2 Nochangeinrate,reductioninnon-recyclablematerial 3 Recyclingrebatespaidtoindustrialcustomersincreasingwithcommoditiesmarket 4 Reclassificationoffreondisposalcosts 5 Woodburnallocationofsixnewroutevehicles 6 Additionalcustomerservicerepresentative,wagechanges,increasesinbenefitscostshigherthaninflation 7 26 ATTACHMENT B YardsPerHourMinutesPerHaulDriveBysPerHour 2008 32.685.292.1 2009 32.179.893.7 2010 32.378.091.0 2011 34.774.487.0 YardsPerHour-Commercialyardsservicedpertruckroutehour MinutesPerHaul-AveragerouteminutesperIndustrialhaul DriveBysPerHour-Residentiallocationsservicedpertruckroutehour. 27 ATTACHMENT B 65gR=65gMixedRecycleCart/Bin 90gR=90gMixedRecycleCart/Bin 65gY=65gYdDebrisCart 90gY=90gYdDebrisCart B=Bi-Weekly W=Weekly 20gallon$19.75$20.00$21.25$20.25$26.75$18.95$19.80 35gallon$22.35$22.75$24.30$22.75$27.50$21.30$23.30 65gallon$31.70$32.30$29.40$26.45$34.35$26.30$31.70 90gallon$35.80$36.50$31.45$30.10$41.85$29.00$35.50 35gallon$19.00$19.90$17.20$18.10$22.75$16.85$17.10 65gallon$28.00$29.30$23.30n/a$34.25$22.15$28.20 90gallon$37.00$38.75$27.35$35.65$44.15$27.30$37.35 1yard$83.10$87.05$89.15$104.65$77.20$89.50$90.10 1.5yard$110.40$115.65$118.50$138.95$103.45$118.80$111.85 2yard$141.90$148.65$151.95$179.85$132.75$152.85$147.10 3yard$212.80$222.90$214.75$270.25$199.50$216.20$209.00 4yard$283.65$297.15$277.55$360.00$265.80$289.65$261.15 5yard$354.55$371.40$366.70$421.00$333.00$355.40$302.50 6yard$419.25$439.15$404.20$539.60$356.80$421.05$335.50 8yard$559.05$585.60$529.80$719.50$475.00$493.40$439.30 10yard$125.00$129.50$123.60$136.00$148.50$123.00$161.70 20yard$141.00$146.00$134.75$154.00$148.50$135.00$161.70 30yard$159.00$165.00$150.00$174.00$169.40$151.80$161.70 40yard$177.00$183.50$177.40$193.00$218.00$173.00$161.70 29 ATTACHMENT B CurrentProposedIncrease MonthlyRateMonthlyRateperweekly pickup Proposed$10.00percart CartSizeCurrentProposed 30 ATTACHMENT B WOODBURNRATESHEET SIZECOMM.EXTRA CARTTRIP(EXT) 35gallon 65gallon 90gallon CBB YardCart ExtraTrip(EXT)-OFFROUTE:1/4MONTHLYRATE+$12(roundtonearest$.05) SIZEONETWOTHREEFOURFIVEEXTRA (loose)X/WEEKX/WEEKX/WEEKX/WEEKX/WEEKTRIP 1yard 1.5yard 2yard 3yard 4yard 5yard 6yard 8yard ManualServicerate: *Cardboardavailablew/weeklyserviceforNOCHARGEEXY(extrayardage): $23/yard SIZETOTALDELIVERYDISPOSALEXY 3yard 33 ATTACHMENT B WOODBURNRATESHEET SIZETOTALDELIVERYHAULDISPOSALCOMPACTORHAUL GARBAGE10yard 10yard 20yard 30yard15yard 40yard 20yard Unacceptabledropboxitems: 25yard 30yard $3.00 $4.00 $8.5040yard $14.00 $25.00 withoutN/C 34 ATTACHMENT B WOODBURNRATESHEET Pick-updates: Includedwithserviceweekly: Bi-weekly: SIZEPKG PRICE 20gallon 35gallon 65gallon 90gallon AdditionalYardDebriscart: 20gallon 35gallon 65gallon 90gallon 35 ATTACHMENT B WOODBURNSUPPLEMENTALSERVICES TYPEOFSERVICERATE Hourlylaborrates(porttoport): $2.10/minute(oneperson,onetruck) $2.85/minute(twopersons,onetruck) Specialservicesnotlisted: Appliances: $25.00 without$5.00 Bathtub/Sink/Toilet: $11.00 $10.00 $10.00 CarBatteries: $10.00 Carpets: $25.00/yard ChristmasTrees: $9.00 $0.00 $9.00 Largefurniture:$25.00 Smallfurniture:$15.00 Hide-a-bed:$25.00 Mattresses: $5.00 $5.00 $10.00 $10.00 $15.00 $15.00 36 ATTACHMENT B Damagedorunretrievedcartsorbin: Vacationcredit: Returntripfee: ManualServiceCharge: Bankruptcyandaccountclosuresforfailuretopay: Serviceinterruptfee/latefees: 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNCIL BILL NO. 2908 RESOLUTION NO. 2019 A RESOLUTION GRANTING UNITED DISPOSAL SERVICE, INC. AN ADJUSTED RATE SCHEDULE FOR PROVIDING SOLID WASTE SERVICE WITHIN THE CITY OF WOODBURN AND REPEALING RESOLUTION 1973 Ordinance 2460grants an exclusive franchise to United Disposal WHEREAS, Services, Inc. (“United Disposal”) to collect, transport, and convey solid waste in the City; and the City Council previously adopted Resolution 1973 which WHEREAS, established certain rates; and United Disposal has requested an adjustment to its residential WHEREAS, and commercial rates and has submitted satisfactory evidence to the City Council to justify the proposed rate schedule;and the City Council held a public hearing to receive testimony and WHEREAS, other evidence regarding the proposed rate schedule; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: That the Council finds that the rates proposed by United Section 1. Disposal are fair and appropriate under the existing franchise. In making this determination, the Council has considered the following factors pursuant to Section 4 of Ordinance 2460: (1)increases in operating or capital costs; (2) increases in City population; (3) extension of City boundaries; (4) increase of intensive residential, commercial or industrial development within the City; (5) changes in solid waste or recycling technology; (6) changes in regulatory requirements; (7) inability of Franchisee to adequately handle increased Page 1 – Council Bill No. 2908 Resolution No. 2019 73 needs for said service; (8)the rates in other cities for similar services;and (9)the public interest by assuring reasonable rates to enable Franchisee to provide efficient and beneficial service to user of the service. That the rate schedule affixed as Exhibit “1” and by this Section 2. reference incorporated herein, is approved. . The rate schedule approved in Section 2 of this resolution shall Section 3 be effective November 1, 2012. Resolution 1973is repealed effective November 1, 2012. Section 4. Approved as to form: City AttorneyDate Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Heather Pierson, Assistant City Recorder City of Woodburn, Oregon Page 2 – Council Bill No. 2908 Resolution No. 2019 74 WOODBURNRATESHEET Pick-updates: Includedwithserviceweekly: Bi-weekly: SIZEPKG PRICE 20gallon 35gallon 65gallon 90gallon AdditionalYardDebriscart: 20gallon 35gallon 65gallon 90gallon 75 WOODBURNRATESHEET SIZECOMM.EXTRA CARTTRIP(EXT) 35gallon 65gallon 90gallon CBB YardCart ExtraTrip(EXT)-OFFROUTE:1/4MONTHLYRATE+$12(roundtonearest$.05) SIZEONETWOTHREEFOURFIVEEXTRA (loose)X/WEEKX/WEEKX/WEEKX/WEEKX/WEEKTRIP 1yard 1.5yard 2yard 3yard 4yard 5yard 6yard 8yard ManualServicerate: *Cardboardavailablew/weeklyserviceforNOCHARGEEXY(extrayardage): $23/yard SIZETOTALDELIVERYDISPOSALEXY 3yard 76 WOODBURNRATESHEET SIZETOTALDELIVERYHAULDISPOSALCOMPACTORHAUL GARBAGE10yard 10yard 20yard 30yard15yard 40yard 20yard Unacceptabledropboxitems: 25yard 30yard $3.00 $4.00 $8.5040yard $14.00 $25.00 withoutN/C 77 Agenda Item October 8, 2012 TO:Honorable Mayor and City Council through City Administrator FROM: Jim Hendryx, Directorof Economic & Development Services SUBJECT: Kalugin Estates subdivision, located south of Hardcastle Avenue, between Dunn Court and Orchard Lane RECOMMENDATION: Adopt the Resolution granting the application in case numbers SUB 2012-01, VAR 2012-02, and EXCP 2012-01. BACKGROUND: The owner requested approval for a14-lot subdivision, with variances for lot area, width, depth, street frontage, front, side and rear setbacks, lot coverage, and street cross-section. The Planning Commission reviewed the proposal at its meeting of July 26, 2012. The Commission voted unanimously to approve the subdivision andall its associated variances. In compliance with the Woodburn Development Ordinance(WDO), the Commission’s decision was placed before the Council at the meeting of September 10, 2012. The Council exercised its prerogative, under Section 4.102.02 of the WDO, to call up the decision for review. The Council conducted apublic hearing on September 24, 2012 and voted to approve the de novo subdivision andall of its associated variances. DISCUSSION: None. FINANCIAL IMPACT: This decision is anticipated to have no public sector financial impact. Agenda Item Review:City Administrator __x____City Attorney __x____Finance __x___ 78 Honorable Mayor and City Council October 8, 2012 Page 2 RM RS CG RS RM Zoning Map 79 COUNCIL BILL NO. 2909 RESOLUTION NO. 2020 A RESOLUTION GRANTING THE APPLICATION IN CASE NUMBERS SUB 2012-01, VAR 2012-02, AND EXCP 2012-01, ADOPTING FINDINGS AND CONCLUSIONS, ANDIMPOSING CONDITIONS a request wasmadebyTroy Plum, PE, applicant, on behalf of WHEREAS, Lazar Kalugin, property owner, for a 14-lot subdivision, with variances for lot area, width, depth, street frontage, front, side and rear setbacks, lot coverage, and street cross-section (for Kalugin Lane and Centennial Drive), and an exception for improvements to Hardcastle Avenue; and thePlanning Commissionheld a public hearing onthecasesat WHEREAS, its meeting ofJuly 26, 2012; and the Planning Commissionapprovedcase numbers SUB 2012-01, WHEREAS, VAR 2012-02 and EXCP 2012-01subject to conditions ofapproval; and on September 10, 2012 the City Council called up thecases WHEREAS, for reviewonitsown initiative; and theCityCouncilheld a public hearing onthecasesat denovo WHEREAS, its meetingofSeptember 24, 2012; and theCityCouncil considered all written and oral testimony WHEREAS, presented at the public hearing; and the City Councilvotedtoapprovecase numbers SUB 2012- WHEREAS, 01, VAR 2012-02 and EXCP 2012-01subject to conditions ofapproval; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Theapplication in case numbers SUB 2012-01, VAR 2012-02 Section 1. and EXCP 2012-01 is hereby granted. This decision is basedupon evidence in therecordbefore Section2. the WoodburnCityCounciland is justified bythe findings and conclusions which are attached hereto as Exhibit "A" and by thisreference are incorporated herein. Page 1 – Council Bill No. 2909 Resolution No. 2020 80 Approval of the application is subject to the conditions Section3. imposed by the WoodburnCityCouncil whichare attached heretoas Exhibit "B"and by this referenceareincorporated herein. Approved as to form: City AttorneyDate Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Heather Pierson, Assistant City Recorder Page 2 – Council Bill No. 2909 Resolution No. 2020 81 EXHIBIT A SUB 2012-01, VAR 2012-02, EXCP 2012-01 APPROVAL CRITERIA Applicable criteria from the Woodburn Development Ordinance (WDO)are Sections: 1.101, 1.102, 2.101, 2.102, 3.101, 3.102, 3.103, 3.104, 3.105, 3.106, 4.101, 4.102, 5.103, and 6.103. Additional relevant criteria are the goals and policies of the Woodburn Comprehensive Plan, and the right-of-way standards of the Woodburn Transportation System Plan. ANALYSIS AND FINDINGS OF FACT General Provisions Findings:Preliminary subdivision cases,variances, and street exceptions are Type III decisions. The Planning Commission is the City’s decision-maker.The applications are processed concurrently,as required by Section 4.101.02. WDO 2.102 Residential Single Family (RS) District Standards Findings: Section 2.102.06.A requires a minimum of 5.2 dwelling units per net acre in subdivisions.The proposed density is 14 dwelling units on 1.3 net acres, or 10.7dwelling units per net acre. Conclusion: The proposed subdivision complies with Section 2.102.06.A. Note: As the proposed subdivision requires variances for most lot and development standards, those are discussed later (pages 8-11). WDO 3.101 Street Standards Findings:Hardcastle Avenue is the Boundary Street and also the Connecting Street for the property, as defined in Section 1.102 and shown in Figure 6.12 of the Transportation System Plan. Hardcastle Avenue is designated as a Service Collectorin the Plan. The required cross-section for a Service Collector is a 72 foot of right-of-way, 36 foot improved driving surface (two 12 foot traffic lanes and a 12 foot center turn lane), 6 foot bike lanes(optional), 6 foot landscape strips and 6 foot sidewalks on both sides. The existing cross- section of Hardcastle Avenue is a 60foot of right-of-way, improved with (south to north) a 6 footsidewalk, 1.5footplanter strip, 2 foot curb and gutter, 4 footbike lane, 11 foot travel lane, 12foot center turn lane, 11 foot travel lane, 4footbike lane, 2foot curb and gutter, and 5 foot sidewalk.The applicant requests an exception for the width of the travel lanes (11 feet instead of 12), bike lane (4 feet instead of 5 feet), and planter strip (1.5 feet instead of 6 feet). Exhibit A Page 1 of 14 82 Detail from Figure 7-2 of the Transportation System Plan The preliminary subdivision plan (Exhibit B) shows 6 feet of right-of-way dedication on Hardcastle Avenue, for a total dedication of 36 feet from centerline. The applicant has requested an Exception to Street Right-of- Way and Improvement Requirements for Hardcastle Avenue, which is discussed later (pages 5-7). Conclusions:The proposed subdivision complies with the right-of-way dedication requirements for a Service Collector. Theapplicant must provide the full street improvements required by the Transportation System Plan for Hardcastle Avenue, or obtain an Exception to Street Right-of-Way and Improvement Requirements, in accordance with Section 3.101.02.D. Findings: Section 3.101.02.F.2 requires that temporary dead end streets have an all weather sign at the temporary street terminus, installedby the applicant, that states: “This Street is Planned for Future Extension” and that the property owner provide either a one foot reserve strip deeded to the City, or an alternative method for limiting access approved by the City Engineer, at the temporary end of the right-of- way. The cover sheet (Exhibit A) shows a Type III barrier and signageat the eastern terminus of Centennial Drive. Conclusions: The proposed development complies with Section 3.101.02.F.2. Installation of the barrier and signage will be verified by the Public Works Department when Centennial Drive is constructed. Finding: Centennial Drive will function as an emergency vehicle turnaround until it is extended. Detail of emergency vehicle turnaround from the Oregon Fire Code Conclusion:No on-street parking can be allowedon Centennial Drive until it is extended. Exhibit A Page 2 of 14 83 WDO 3.102 Utilities and Easements Finding: Section 3.102.04.A requires dedication of easements for municipal infrastructure, if required by the Public Works Department. The Public Works Department has not requested dedication of easements, other than those required by Section 3.102.04.B. Conclusion: The proposed subdivisioncomplies withSection 3.102.04.A. :Section 3.102.04.B requires dedication of a 5 foot public utility easement along each lot line Findings abutting a street. The preliminary subdivision plan shows a 10 foot public utility easement along either side of the street. Conclusion: The proposed subdivisionexceeds the requirements ofSection 3.102.04.B. WDO 3.103 Setback, Open Space and Lot Standards, Generally Section 3.103.01 provides that setbacks define the areas within a lot that are to be retained and maintained unobstructed by buildings and structures. The preliminary subdivision plan shows the setbacks required in the RS zone (the correct setbacks for Lot 6 are shown in Exhibit C.)The applicant is requesting variances from the front, side, and rear setbacks. Findings: Section 3.103.01 Setbacks and required open space define the areas within a lot that are to be unobstructed by buildings and structures, exceptfor projections, accessory uses and structures and for common facilities required as a condition of a land use decision. Conclusion:If the Council grants a variance for setbacks, compliance with the approved setbacks will be verified during the building permit process. WDO 3.104 Access Findings: Section 3.104.01.A.1 requires that parcels have access to a public street. The site plan shows all lots with direct access to a public right-of-way. Conclusion: The proposed development complies with Section 3.104.01.A. :Section 3.104.03.A.2.b provides that the lot and street layout in a subdivision or PUD should be Findings configured so that lots abutting a major street have access to a local street. The preliminary plan shows Lot 2 taking access from Centennial Drive(a local street), not Hardcastle Avenue (a major street as defined in Section 1.102.) Conclusion:The proposed development complies with Section 3.104.03.A.2.b. Findings:Section 3.104.05.C.2 requires an improved parking space, or pad, abutting the attached or detached garage doorway for each opposing parking space within the garage. The exterior pad area for each vehicle shall have the minimum dimensions of 10 feet wide by 20 feet long. The preliminary plat shows a driveway the width of the garage and 20 feet long for each dwelling unit. Conclusion:The proposed development complieswith Section 3.104.05.C.2. Exhibit A Page 3 of 14 84 WDO 3.105 Off-Street Parking and Loading Findings:Table 3.1.2 requires, for single-family or duplex dwellings, 2 off-street parking spaces per dwelling unit in a garage. The submittal did not include floor plans. Conclusions:The proposed development complies with Table 3.1.2.This will be verified during the building permit process. WDO 3.106 Landscaping Standards Findings: Section 3.106.01.A exempts single-family and duplex dwellings from on-site landscaping requirements. The proposed development is entirely single-family. Conclusion: The proposed development is exempt from on-site landscaping requirements. :Section 3.106.03.A.1 requires that street trees be planted prior to final occupancy. Section 6.103 Findings lists acceptable and unacceptable trees species, classified by size.Four small trees, three medium trees, or two large trees are required per 100 feet of street frontage. The subdivision has a total street frontage of approximately 1,020 feet. The siteplan (exhibit C) shows 25street trees, but does not identify the species. At least 41 small trees, 31 medium trees, or 20large street trees are required prior to final occupancy.Street tree plans are typically approved administratively during the subdivision process. Street trees as indicated on the plan are then planted upon development of each abutting lot, as part of the building permit process.The applicant proposes to plant the street trees on site, outside the public right-of-way. Conclusions: The proposed development has not been shown to comply with Section 3.106.03.A.1. The property owner shall submit a street tree plan that shows the equivalent of at least 41 small, 31 medium, or 20 large street trees (per Section 6.103) and shall identify the species of street tree to be planted. Although the street trees are located on the lots, their planting and maintenancecan be required as conditions of approval for the subdivision. WDO 5.103.03 Exception to Street Right of Way and Improvement Requirements Section 5.103.03.B provides that the purpose of a street exception is to allow a deviation from the development standard required for the functional classification of the street identified in the Transportation System Plan(TSP).The applicant requests an exception for Hardcastle Avenue, for the width of the travel lanes (11 feet instead of 12), bike lane (4 feet instead of 5 feet), and planter strip (1.5 feetinstead of 6 feet). Section 5.103.03.B requires the applicant to analyze the effect of a proposed development on streets near the development (the boundary streets and connecting streets), and on the larger transportation system. Subsection B.1 requires an estimate of the extent to which the rights-of-way and improvements will be used by persons served by the building or development. th Findings regarding Section 5.103.03.B.1: The Institute of Traffic Engineer’s trip generation manual (7 edition) estimates 9.57 average daily trips per dwelling unit. The proposed subdivision will entail a net increase of [14] dwelling units and can be expected to generate an additional 106 average daily trips on Hardcastle Avenue. Neither conventional traffic counts, nor the ITE Trip Generation Manual, account for non-vehicular traffic. The sidewalks are required by the Transportation System Plan for safety. The Exhibit A Page 4 of 14 85 landscape strip is required by the Transportation System Plan as a standard of aesthetics. The specified improvements are needed to provide vehicle and non-motorized transportation facilities throughout the street corridor. Traffic counts from August, 2008 show 1,177 average daily trips on Hardcastle Avenue, approximately 1 block east of the property. Conclusions regarding Section 5.103.03.B.1: Users of the proposed subdivision will use Hardcastle Avenue for both their vehicular and non-motorized traffic needs, for safety as well as convenience. The proposed subdivision will generate approximately a 9.0 percent increase in vehicular trips per day on Hardcastle Avenue. Subsection B.2 requires an estimate of the improvements needed to meet the estimated use of the building or development. Findings regarding Section 5.103.03.B.2: The proposed subdivision will generate an approximately 9 percent increase in vehicular trips per day on Hardcastle Avenue. The existing cross-section of Hardcastle Avenue is a 60 foot right-of-way, improved with (south to north) a 6 foot sidewalk, 1.5 foot planter strip, 2 foot curb and gutter, 4 foot bike lane, 11 foottravel lane, 12footcenter turn lane, 11 foottravel lane, 4footbike lane, 2foot curb and gutter, and 5 footsidewalk. Conclusions regarding Section 5.103.03.B.2: No improvements to Hardcastle Avenue are needed to accommodate the increase in traffic attributable to the proposed subdivision. It is reasonable to require the property owner to participate in the cost of providing all improvements required by the Transportation System Plan for Hardcastle Avenue. The property owner should enter into a non-remonstrance agreement to participate in the cost of reconstructing Hardcastle Avenue to the standards of the Transportation System Plan when such reconstruction becomes timely. Subsection B.3 requires an estimate of the impact the building or development will have on the larger public infrastructure system. : The proposed subdivision will generate an approximately 9 percent Findings regarding Section 5.103.03.B.3 increasein vehicular trips per day on Hardcastle Avenue. The traffic impact on the larger public infrastructure system is substantially smaller than the impact on Hardcastle Avenue. Conclusions regarding Section 5.103.03.B.3: No immediate improvements to thelarger public infrastructure system are needed to accommodate the increase in traffic attributable to the proposed subdivision. System Development Charges (SDCs) will be collected to fund improvements to the larger public infrastructure system. Subsection B.4 requires an estimate of the improvements needed to mitigate the impact of the building or development on the larger public infrastructure system. Findings regarding Section 5.103.03.B.4: The proposed subdivision will generate an approximately 9 percent increase in vehicular trips per day on Hardcastle Avenue. The traffic impact on the larger public infrastructure system is substantially smaller than the impact on Hardcastle Avenue. Exhibit A Page 5 of 14 86 : No immediate improvements to the larger public infrastructure Conclusions regarding Section 5.103.03.B.4 system are needed to accommodate the increase in traffic attributable to the proposed subdivision. System Development Charges (SDCs) will be collected to fund improvements to the larger public infrastructure system. : Section 5.103.03.C prohibits exceptions from construction specifications. The applicant has not Findings requested an exception from construction specifications, but rather an exception to the street cross-section requirement. Conclusion: An exception to reduce a street right-of-way or cross-section requirement is not precluded by Section 5.103.03.C. Findings: Section 5.103.03.D requires that rights-of-way meet minimum standardsof safetyto be eligible for a street exception. As specified in Section 3.101.02.D.1 and 2, the minimum standard for safety is a curb and 10 foot wide travel lane in each direction, drainage facilities, pedestrian and bikeway facilities located on one side of the street, and full improvement of the street from the center line to the boundary of the subject property. As a Service Collector, the required cross-section for a Hardcastle Avenue is a 72 foot of right-of- way, 36 foot improved driving surface (two 12 foot traffic lanes and a 12 foot center turn lane), 6 foot bike lanes (optional), 6 foot landscape strips and 6 foot sidewalks on both sides. The existing cross-section of Hardcastle Avenue is a 60 foot right-of-way, improved with (south to north) a 6 foot sidewalk, 1.5 foot planter strip, 2 foot curb and gutter, 4 footbike lane, 11foottravel lane, 12 foot center turn lane, 11 foot travel lane, 4 foot bike lane, 2 foot curb and gutter, and 5 footsidewalk. Conclusions: Hardcastle Avenue meets the specified minimum standards of safety. A street exception is not precluded by Section 5.103.03.D. Summary of conclusionsregarding the street exception: Requiring the applicant to build the boundary and connecting streets to the cross-section specified in the Transportation System Plan would exceed the applicant’s proportional share of the public improvements. It is, however, reasonable to require the property owner to bear a portion of the improvement costs for Hardcastle Avenue. A non-remonstrance agreement for public improvements could be required as a condition of approval for the street exception. Exhibit A Page 6 of 14 87 WDO 5.103.10 Subdivision Preliminary Approval Findings: Section 5.103.10.B.1 requires that a subdivision not impede the future best use of the remainder of the property or development of adjoining land. The current application includes all contiguous land owned by the applicant. The subdivision design does not restrict access to or development of abutting properties. Conclusion: The proposed subdivision complies with Section 5.103.10.B.1. Findings: Section 5.103.10.B.2 requires that a subdivision be served with City streets, water, sewer and storm drainage facilities with adequate capacity. The Public Works Department reports that the development can be served by the existing systems. Conclusion: The proposed subdivision complies with Section 5.103.10.B.2. Findings : Section 5.103.10.B.3 requires that the plan for the development takes into account topography, vegetation and other natural features of the site. Conclusion: The proposed subdivision complies with Section 5.103.10.B.3. Findings: Section 5.103.10.B.4 requires that adequate measures be taken to alleviate identified hazards and limitations to development from wetlands and geologically unstable soil. There are no wetlands or unstable soil identified on the property. Conclusion:The proposed subdivision complies with Section 5.103.10.B.4. : Section 5.103.10.B.5 requires that the development comply with all applicable provisions of the Findings WDO,exceptas may be waived by variance. Compliance with the relevant standards and the need for variance is detailed in these findings. Conclusion: The proposed subdivision complies with Section 5.103.10.B.5. WDO 5.103.12 Variance (lot and development standards) Findings:Section 5.103.12.A provides that the purpose of a variance is to allow use of a property in a way that would otherwise be prohibited by this ordinance. Uses not allowed in a particular zone are not subject to the variance process.The variances requested are for dimensional standards, not for land uses. Conclusion:The proposed subdivision complies with Section 5.103.12.A. Findings:Section 5.103.12.B provides that a variance from development standards may be granted when strict adherence to the standards of the WDO is not possible or imposes an excessive burden on the property owner, and when variance to the standards will not unreasonably impact existing or potential uses or development on the subject property or adjacent properties. Exhibit A Page 7 of 14 88 The applicant has requested variances for lot area, width, depth, street frontage, front, side and rear setbacks, and lot coverage, as shown in the following tables: Lot Standards Requiring a Variance Lot AreaLot WidthStreet FrontageLot Depth Lot ProposedRequiredProposedRequiredProposedRequiredProposedRequired 25,7368,00043.1390 32,3056,00037.505037.504061.4890 43,6896,00061.48 90 53,6896,00061.48 90 63,6896,00061.48 90 74,6918,00075.038061.48 90 85,0526,00086.7590 94,8906,00085.9690 104,8466,00085.1390 113,0248,00050.388061.5290 122,3076,00037.505037.504061.5290 134,3076,00061.5390 144,3086,00061.5490 154,3156,00061.5590 Exhibit A Page 8 of 14 89 Development Standards Requiring a Variance Front SetbackSide SetbackRear SetbackLot Coverage Lot ProposedRequiredProposedRequiredProposedRequiredProposedRequired 21220051030 312200510304635 412201024 512201024 612201024 712201024 81220 91220 101220 1112200510303635 1212200510304635 1312201024 1412201024 1512201024 Findings:Section 5.103.12.C lists five factors to be used as a guide in deliberations on the application. These are discussed in detail for each requested variance in pages 12-39 of the applicant’s submittal, which is incorporated into this staff report as Attachments A and B. In the following analysis, the applicant’s statements have been summarized, and the reader is referred to Attachments A and B for the complete text of the statements. Section 5.103.12.C.1: The variance is needed to prevent unnecessary hardship relating to the land or structure, which would cause the property to be unbuildable by application of the WDO. Factors to consider in determining whether hardship exists, include: Physical circumstances over which the applicant has no control related to the piece of property involved that distinguish it from other land in the zone, including but not limited to lot size, shape, or Exhibit A Page 9 of 14 90 topography. Whether reasonable use,similar to other properties, can be made of the property without the variance. Whether the hardship was created by the person requesting the variance. Findings regarding Section 5.103.12.C.1: The property is distinguished from other land in the zone by its width (not wide enough for conventional lots on both sides, but wide enough to be developed with small lots on both sides.) It is also unique in the configuration of abutting streets (Hardcastle Avenue and Centennial Drive.) The owner asserts that the variances are necessary to make reasonable use of the property. Section 5.103.12.C.2: Development consistent with the request will not be materially injurious to adjacent properties. Factors to be considered in determining whether development consistent with the variance will be materially injurious include,but are not limited to: Physical impacts such development will have because of the variance, such as visual, noise, traffic and drainage, erosion and landslide hazards. Incremental impacts occurring as a result of the proposed variance. Findings regarding Section 5.103.12.C.2: The development allowed by the requested variances is not anticipated to be materially injurious to adjacent properties, either through physical impacts such as visual, noise, traffic and drainage, erosion and landslide hazards, or through incremental impacts occurring as a result of the proposed variances.Adjacent property to the west is zoned Medium Density Residential (RM) and is developed with duplexes. Adjacent property to the east is zoned Single-Family Residential (RS) and is developed with a single-family dwelling. The proposed subdivision is transitional between the two development types. Section 5.103.12.C.3: Existing physical and natural systems, such as but not limited to traffic, drainage, dramatic land forms or parks will not be adversely affected because of the variance. Findings regarding Section 5.103.12.C.3: The development allowed by the requested variances is not anticipated to affectdrainage or other physical or natural systems. There are no dramatic land forms nearby. Nelson Park, the nearest public park, is approximately 1,100 feet away by road. Section 5.103.12.C.4: The variance is the minimum deviation necessary to make reasonable economic use of the property. Findings regarding Section 5.103.12.C.4:The proposed small-lot subdivision, with lots on both sides of Kalugin Lane,increases the number of lots available to support the cost of necessary infrastructure improvements. The owner asserts that the variances are necessary to make reasonable economic use of the property. Section 5.103.12.C.5: The variance does not conflict with the Woodburn Comprehensive Plan. :Comprehensive Plan policy D-2.2 states that it is the policy of the Findings regarding Section 5.103.12.C.5 City to encourage a variety of housing types to accommodate the demands of the local housing market. Policy D2.6 states thatWoodburn is committed to providing affordable homeownership opportunities to its Exhibit A Page 10 of 14 91 citizens. For this reason, Woodburn zoning regulations will allow rowhouses (attached single-family homes) and detached single-family homes on smaller lots (4,000 sq. ft. minimums) within Nodal Development areas. The site does not have the 5 acres required for a Planned Unit Development. The property is not located in the nodal overlay (which allows attached dwellings at higher density than the RS zone). The owner’s only option to develop a small-lot subdivision is to obtain multiple variances. The property is zoned Residential Single-Family (RS) and is designated Low Density Residential on the Comprehensive Plan Map. The proposed use of the property is single-family residential. Abutting properties are zoned Residential Single- Family (RS) and Medium Density Residential (RM), and are designated Low Density Residential and Medium Density Residential on the Comprehensive Plan Map. Conclusions regarding Section 5.103.12.C: The property is not “unbuildable by application of the WDO.” The requested variances would not alter existing patterns of traffic or drainage, or other physical or natural systems, or be materially injurious to adjacent properties. The requested variances do not conflict with the Woodburn Comprehensive Plan, and will further the policy of providing a variety of housing types and affordable homeownership opportunities. WDO 5.103.12 Variance (street cross-section) Findings:Section 5.103.12.A provides that the purpose of a variance is to allow use of a property in a way that would otherwise be prohibited by this ordinance. Uses not allowed in a particular zone are not subject to the variance process.The variances requested are for dimensional standards, not for land uses. Conclusion:The proposed subdivision complies with Section 5.103.12.A. Section 5.103.12.B provides that a variance from development standards may be granted when strict adherence to the standards of the WDO is not possible or imposes an excessive burden on the property owner, and when variance to the standards will not unreasonably impact existing or potential uses or development on the subject property or adjacent properties. The applicant has requested variances for right-of-way width (47 feet instead of 60 feet) and planter strip (none instead of 7 feet, with street trees located on propertyinstead of in a planter strip). Findings: The applicant has requested variances for the cross-sections ofKalugin Lane and Centennial Drive. Exhibit A Page 11 of 14 92 Detail from Figure 7-2 of the Transportation System Plan Proposed cross-section of Kalugin Lane and Centennial Drive Findings:Section 5.103.12.C lists five factors to be used as a guide in deliberations on the application. Section 5.103.12.C.1: The variance is necessary to prevent unnecessary hardship relating to the land or structure, which would cause the property to be unbuildable by application of the WDO. Factors to consider in determining whether hardship exists, include: Physical circumstances over which the applicant has no control related to the piece of property involved that distinguish it from other land in the zone, including but not limited to lot size, shape, or topography. Whether reasonable use,similar to other properties, can be made of the property without the Exhibit A Page 12 of 14 93 variance. Whether the hardship was created by the person requesting thevariance. Findings regarding Section 5.103.12.C.1: The property is distinguished from other land in the zone by its shape and the configuration of abutting streets (Hardcastle Avenue and Centennial Drive). The requested variance does not involve the driving or parking lanes, or affect the functionality for vehicular traffic. Section 5.103.12.C.2: Development consistent with the request will not be materially injurious to adjacent properties. Factors to be considered in determining whether development consistent with the variance materially injurious include but are not limited to: Physical impacts such development will have because of the variance, such as visual, noise, traffic and drainage, erosion and landslide hazards. Incremental impacts occurring as a result of the proposed variance. Findings regarding Section 5.103.12.C.2: The development allowed by the requested variances is not anticipated to be materially injurious to adjacent properties, either through physical impacts such as visual, noise, traffic and drainage, erosion and landslide hazards, or through incremental impacts occurring as a result of the proposed variance.The requested variance does not involve the driving or parking lanes, or affect the functionality for vehicular traffic. Section 5.103.12.C.3: Existing physical and natural systems, such as but not limited to traffic, drainage, dramatic land forms or parks will not be adversely affected because of the variance. Findings regarding Section 5.103.12.C.3: The development allowed by the requested variances is not anticipated to affect drainage or other physical or natural systems. There are no dramatic land forms nearby. Nelson Park, the nearest public park, is approximately 1,100 feet away by road. Section 5.103.12.C.4: The variance is the minimum deviation necessary to make reasonable economic use of the property. Findings regarding Section 5.103.12.C.4:The requested variancedoes not involve the driving or parking lanes, or affect the functionality for vehicular traffic. Section 5.103.12.C.5: The variance does not conflict with the Woodburn Comprehensive Plan. Findings regarding Section 5.103.12.C.5:Goal H-2 of the Comprehensive Plan is to develop a street system that will handle projected year 2020 traffic demands in the Woodburn area, and interconnects residential areas with employment centers, schools, parks, churches, and regional transportation facilities.The property is zoned Residential Single-Family (RS) and is designated Low Density Residential on the Comprehensive Plan Map. The proposed use of the property is single-family residential. Abutting properties are zoned Residential Single-Family (RS) and Medium Density Residential (RM), and are designatedLow Density Residential and Medium Density Residential on the Comprehensive Plan Map. The proposed design anticipates the future extension of Centennial Driveto provide looped traffic flow. Exhibit A Page 13 of 14 94 : The property is not “unbuildable by application of the WDO.” Conclusions regarding Section 5.103.12.C The requested variances would not alter existing patterns of traffic or drainage, or other physical or natural systems, or be materially injurious to adjacent properties. The requested variances do not conflict with the Woodburn Comprehensive Plan. Agency Comments The Public Works Department made the following comments, to be resolved prior to approval of the final plat: Actual Geodetic Elevations are required for all storm and sanitary sewer facilities. Public Works needs to obtain the revised storm drainage report for this subdivision. Sewer laterals for Lots 8, 9, 11, 12, and 13 are in conflict with the proposed tree locations. The PUE is not shown on the preliminary plat sheet – the PUE needs to be shown on this sheet. Centennial Drive should be 34” wide throughout the development; the transition to 29’ should occur with the future easterly development. Ensure that all proposed homes can be reached per Woodburn Fire District requirements (250’). Sanitary sewer lateral and water line are too close to each other for Lots 12 and 6. Sanitary sewer lateral and water line to Fire Hydrant are too close to each other for Lot 15. The Building Official made the following comments: Because the proposed houses will be built to the setback lines (with no room for error), foundation surveys will be required as part of the building permit and construction process. A 12’ front setback with a 10’ PUE leaves an inadequate angle of repose to the foundation if a utility is trenched in at the edge of the PUE.A narrower PUE, limiting excavation to a narrower area, or requiring deeper foundations in front could resolve this issue. Exhibit A Page 14 of 14 95 EXHIBIT B SUB 2012-01, VAR 2012-02, EXCP 2012-01 The City Council approvescases SUB 2012-01, VAR 2012-02, and EXCP 2012-01, subject to the following conditions of approval: 1. The property owner shall execute an acceptance of these conditions on a form provided by the City. 2. The property owner shall develop and maintain the subject property in accordance with all provisions of the WDO, whether or not addressed in the staff review, conditions of approval, or public hearing. 3. The property shall be developed in substantial conformity to the plans attached hereto as Exhibits A through G. 4. Lots 4 through 10 and 13 through 15 shall be developed with single-story dwellings, as depicted in Exhibit “G”. 5. The property owner shall submit a street tree plan that shows the equivalent of at least 41 small, 31 medium, or 20 large street trees (per Section 6.103) and shall identify the species of street tree to be planted. 6. Two off-street parking spaces per dwelling unit in a garage will be required during the building permit process, in accordance with Table 3.1.2. 7. The property owner shall enter into a non-remonstrance agreement with the City to participate in future street improvements to Hardcastle Avenue. 8. The property owner shall resolve the following items with the Public Works Department prior to approval of the final plat: Actual Geodetic Elevations are required for all storm and sanitary sewer facilities. Public Works needs to obtain the revised storm drainage report for this subdivision. Sewer laterals for Lots 8, 9, 11, 12, and 13 are in conflict with the proposed tree locations. The PUE is not shown on the preliminary plat sheet – the PUE needs to be shown on this sheet. Centennial Drive should be 34” wide throughout the development; the transition to 29’ should occur with the future easterly development. Ensure that all proposed homes can be reached per Woodburn Fire District requirements (250’). Sanitary sewer lateral and water line are too close to each other for Lots 12 and 6. Sanitary sewer lateral and water line to Fire Hydrant are too close to each other for Lot 15. 9. Ownership of the “teardrop” remnant at the northeast corner of Hardcastle Avenue and Kalugin Lane shall be resolved prior to final plat approval. Exhibit B Page 1 of 1 96 Agenda Item October 8, 2012 TO:Honorable Mayor and City Councilthrough City Administrator FROM:Michael Hereford, Director of Human Resources SUBJECT: Establishment of HRA VEBA plan : RECOMMENDATION Adopt the resolution authorizing the establishment of a HRA VEBA plan. BACKGROUND On September 24, 2012, the Council approved acollective bargaining agreement with the AFSCME union. Animportant part of that agreement is a new health plan designed with a high deductibleand an employee health savings account (“HSA”) that is given special tax treatment by the IRS and is held by the participating employee. The HSA is part of a strategy by both the City and the AFSCME unionto lower employee health insurance costs. The HSA portion of the benefit package has strict IRS limitations. For instance, employees that are eligible for Medicare, retired military and tribal plans are not able to have an HSA. For these affected employees, the IRS allows the establishment of a Voluntary Employee Benefit Association (“VEBA”). : DISCUSSION The adoption of the resolution authorizing the establishment of a HRA VEBA plan will allow implementation of the collective bargaining agreement and allow the City and the AFSCMEunion to move ahead with efforts to lower employee health insurance costs. : FINANCIAL IMPACT The City’s election to participate in the Trust and provide the VEBA plan has no direct financial impact. As previously explained to the City Council, the adopted collective bargaining agreement with AFSCME represents a savings in overall health care costs, makes modest adjustments to some compensation packages and meets the City Council’s financial objectives per the Councils adopted Five Year Financial Forecast and Budget Policies. Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance ___x__ 97 COUNCIL BILL NO. 2910 RESOLUTION NO. 2021 A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A HEALTH REIMBURSEMENT ARRANGEMENT/VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION (“HRA VEBA”) PLAN the Internal Revenue Code Section 501(c)(9) allows for the WHEREAS, creation of a voluntary employees’ beneficiary association (VEBA), which is a tax-exempt health and welfare trust; and IRS regulations and guidelines allow an employer to offer health WHEREAS, reimbursement arrangement (HRA) plans; and such HRA plans are available to governmental employers in WHEREAS, the Northwest; and the Voluntary Employees’ Beneficiary Association for Public WHEREAS, Employees in the Northwest Trust (“the Trust”) offers and will administer an HRA entitled “Voluntary Employees’ Beneficiary Association Medical Expense Plan for Public Employees in the Northwest” (“the Plan”) as amended and restated; and theCity of Woodburn (“the Employer”) has determined that WHEREAS, establishing an HRA plan which provides a tax-free defined contribution account for employees to pay for medical, dental, vision and tax qualified long- term care premiums and non-covered healthcare expenses is in the best interest of the Employer and its employees; and the Employer desires to establish an HRAVEBA plan for its WHEREAS, employees; and the Employer desires to use the services of the Trust to WHEREAS, administer such Plan; and such HRA established by the Employer will be administered in WHEREAS, accordance with the Plan documents provided by the Trust on file in the Employer’s main office, NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: EffectiveJanuary 1, 2013,the Employer hereby elects to Section 1. participate in the Plan and the Trust as presently constituted or hereafter Page 1 –Council Bill No. 2910 Resolution No. 2021 98 amended using the Trust as its plan administrator for the benefit of eligible employees as defined by Employer policies or collective bargaining agreements. The Plan will be funded with Employer contributions in Section 2. amounts determined from time to time pursuant to Employer policies and collective bargaining agreements. The City Administratoris authorized to execute all documents Section 3. and establish procedures consistent with Plan and Trust provisions andthe applicable Employer policies and collective bargaining agreements necessary to effect the adoption and administration of the Plan. Approved as to form: City AttorneyDate Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Heather Pierson, Assistant City Recorder City of Woodburn Page 1 –Council Bill No. 2910 Resolution No. 2021 99 Agenda Item October 8, 2012 TO: Honorable Mayor and City Council through the City Administrator FROM: Jim Hendryx, Economic and Development Services Director SUBJECT: Valley Development Initiatives Sub-Grant Agreement RECOMMENDATION: Authorizethe City Administrator to sign an Intergovernmental Agreement(IGA) with the Mid-WillametteValleyCouncil of Governments(COG),to administer the 2012 Community Development BlockGrant (CDBG) for low-income housing rehabilitation. : BACKGROUND The City of Woodburn was awarded CDBG Housing Rehabilitation grants in the mid-80’s and again in the mid-90’s for lending to area homeownerswho were eligible for the program. Over the years, through repayment of loans, the Housing Rehabilitation Program accumulated approximately $420,000, which wasavailable for future lending. The majority of thosefunds were again loaned out in 2009-10. That round of loans created considerable interest in the Housing Rehabilitation Program, and more than 90 City residents applied for funding, with 29 receiving loans. By documenting the City of Woodburn’s need, Woodburnwas able to qualify for another CDBG grant this past May, in the amount of$400,000. : DISCUSSION Program rules require that the lead applicant transfer the responsibility of managing the Housing Rehabilitation Program to an appropriate non-profit organization, such as Valley Development Initiatives (VDI), through a sub- recipient agreementAs Council is aware, VDI is staffed by the COG, who also . manages housing rehabilitation programs for the cities of Aumsville, Aurora, Gervais, Hubbard, Jefferson, Scotts Mills, Stayton, the Santiam Canyon, Turner and Marion County. The sub-recipient agreement, which is attached, needs to be executed to meet Federal requirements of the CDBGProgram. Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___ 100 Honorable Mayor and City Council October 8, 2012 Page 2 : FINANCIAL IMPACT The total grant amount equals $400,000.VDI has proposed a contract amount of $90,000 for grant administration, program management, and environmental review. This would leave $310,000 in CDBG funds for lending ($232,500 in loan funds will be used by the City of Woodburn and $77,500 will be used by the City of Stayton). TheCity of Woodburn set aside $15,000 of their previous CDBG fund award as a matchwhen applyingfor the CDBG.All of the City of Woodburn match funds will be used for lending to homeowners in the City of Woodburn, so the City has approximately $247,500 in loan funds availableto use in the Housing Rehabilitation Program. Attachments VDISub-Grant Agreement 101 Regional Housing Rehabilitation Revolving Loan Fund Valley Development Initiatives SUBGRANT AGREEMENT This Subgrant Agreement (“this Agreement”) is entered into between City of Woodburn (“Local , Jurisdiction”), and Valley Development Initiatives(“Subgrantee”). Table of Contents Recitals I.Eligible Activities II.Responsibilities of Local Jurisdiction III.Responsibilities of Subgrantee IV.Time of Performance V.Compensation VI.Notices VII.Suspension or Termination VIII.General Conditions IX.Reporting, Recordkeeping, Procurement X.Federal and State Requirements XI.EffectiveDate List of Exhibits 1 102 RECITALS State A.The Local Jurisdiction has received the following awards from the State of Oregon (“”): Contract # H12004 1.Community Development Block Grant (CDBG) between Oregon . Business Development Department (IFA) and the City of Woodburn (“Local Jurisdiction”) Exhibit A The Grant Contract is attached as and is incorporated herein. The purpose of this grant is to provide housing rehabilitation loans to low and moderate income homeowners that own and occupy their single family residence. Local Jurisdiction desires to grant these funds to the Subgrantee to carry out these activities. B.The Grant Contractis subject to Title I of the Housing and Community Development Act of (“the Actthe 1974, 42 U.S.C. §§5301-5321 ”), 24 CFR §570 Subpart I (570.480-.497) (“ Regulations ”), ORS Chapter 285a, and OAR 123-080-0000 et seq., the 2010 Method of the MODthe GMH Distribution (“”), and the current Grant Management Handbook (“”) “eligible 1.The Act and Regulations require that all activities carried out with grant funds be activities ” as defined in Section 105(a) of the Act (42 USC §5305(a)), the 2012 MOD and the current GMH. 2.The Act and Regulations require that any income generated from sucheligible activities program income (“”) must be used only to continue such eligible activity. This is referred to as “the program income rule.” (24 CFR 570.489(e)(3)) (For example, when loans that were GrantContract #H12004 made by the Local Jurisdiction under between IFA and the City of Woodburn,are repaid to the local Jurisdiction, the loan repayments (both principal and interest) are considered program income.) Exceptions to Program Income Rule: 3.The Act and Regulations (24 CFR 570.489(e)(2)), the MOD and the GMH provides exceptions to the program income rule that may be relevant here. a)The following income is not program income: (1)income generated by eligible activities thatare carried out by an eligible subgrantee. Grant Contract (For example, repayments of loans made by Subgrantee pursuant to #H12004 between IFA and the City of Woodburn will not be program income.) (2)income from eligible activities if the total amount of such income received during a single year is less than $25,000. 4.Loss of Federal Identityis also referred to as “defederalized funds”.Defederalized funds can be used for a much wider range of activities than program income can be used for. Local Jurisdiction desires to contract with Subgrantee to carry out eligible activities, so that the income from such activities will be non-program income, thereby providing maximum flexibility in the use of funds derived from the grants referenced in Recital A above. C.Subgrantee is a qualified nonprofit organization, having received certified Sub-grantee status from Oregon Housing and Community Services in 1996. Subgrantee is an eligible sub-recipient through which the CDBG funds can be defederalized. 1.It is a tax exempt organization under Section 501(c)(3) or 501(c)4 of the Internal Revenue code of 1986; 2 103 2.The organization has as one of its primary purposes (as outlined in its bylaws, articles of incorporation or charter) to provide affordable housing that is decent, safe and sanitary for low and moderate income Oregonians, in the non-entitlement areas of the state. 3.The organization serves the development needs of the communities in the non-entitlement areas of the state and is carrying out a neighborhood revitalization, community economic development, or energy conservation project in accordance with 105(a)(15) of the Housing and Community Development Act (HCDA). D.Subgrantee has been selected to provide the services called for by this grant agreement, based on Subgrantee’s specialized skills, knowledge and resources that enable it to exercise its sound professional judgment in carrying out the services required by this Agreement. E.The Local Jurisdiction desires to engage Subgrantee to , 1.Establish theLoan Fund Grant Contract # H12004 2.Administer and manage ,between IFA and the City of Woodburn, to carry-out the loan fund in accordance with the CDBG program requirements: Be the owner of all program policies and processes. Be responsible for these minimum activities: all final loan decisions, owner of all loan portfolios, compliance with all CDBG requirements, owner of future loans and repayments, and final accountability for all CDBG funds. Be the lender of all the loans. All loan repayments must be received by the nonprofit. These subsequent loan and interest repayments are not subject to the program income requirements as long as the nonprofit uses the funds to support affordable housing needs, community economic development, neighborhood revitalization or an energy conservation projects. Ensure the loans are lent for projects that will meet the CDBG low- and moderate- income housing direct benefit national objective of 24 CFR 570.483(b)(3). 3.Operate the Loan Fund, the assets of which shall include: Grant Contract #H12004 a)The proceeds of ,between IFA and the City of Woodburn, b)Such other assets as may be deposited into the Loan Fund in the future by these or other municipal jurisdictions, County jurisdictions, or by other private entities, c)Defederalize the loan repayments and other income resulting from the operation of the fund, and d)Continue to create affordable housing for low and moderate income persons. THEREFORE , the parties agree as follows: I. ELIGIBLE ACTIVITIES A. For the use of initial grant funds and for program income, eligible activities are those set out in § Grant Contract # 105(a) of the Act (see Recital B), the 2012 MOD, and Exhibit Aof the H12004 between IFA and the City of Woodburn. B. For the use of defederalized funds, the eligible activities must be consistent with the loan policies 3 104 and procedures for the original RLF, unless otherwise amended by the Subgrantee and must be used to carry out neighborhood revitalization, community economic development, or an energy conservation project in accordance with 105(a)(15) of the Housing and Community Development Act. C. In all cases, the activities will benefit low- and moderate-income persons. II.RESPONSIBILITIES OF LOCAL JURISDICTION Local Jurisdiction has these responsibilities: A.The local jurisdiction is responsible for all the federal CDBG compliance requirements assigned to the sub-grantee. These requirements remain the obligation of the local jurisdiction until Grant Contract #H12004 closeout of with the state(refer to page 13-2 of the 2012 MOD). Make Contributions of Assets to Loan Fund. B.Local Jurisdiction shall make contributions and assignments as set forth below. Grant Contract #H12004 1.The proceeds of ,between IFA and the City of Woodburn, to be contributed to the Loan Fund as the funds are drawn down from the State; Grant Contract Responsibilities: C.With regard to the Grant Contract, Local Jurisdiction shall: Monitor and Oversee Subgrantee. 1.With regard to activities carried out by Subgrantee under the Grant Contract and with regard to any program income, Local Jurisdiction shall: a)Provide monitoring and oversight as required by the Act, the Regulations, the 2012 MOD, thecurrentGMH,andthe applicable grant agreement, b)Ensure that Subgrantee complies with the Act and Regulations, the 2012 MOD, and the current GMH. c)To the extent allowed under Section VII of this Agreement (Suspension and Termination), recover on behalf of the state any liabilities that may arise as the result of the breach of the grant contract by Subgrantee. d)Hold meetings with Subgrantee as necessary or as requested by CITY to monitor program requirements and ensure that all program activities comply with the Acts and Regulations. Participants will review applications and other program documentation to ensure that program requirements are being met in a timely manner. e)Identify City personnel to work with Subgrantee on a daily basis to ensure that all program requirements are being met in a timely manner. f)Review and ensure all reports, cash requests and other submissions to IFAfrom Valley Development Initiativesare complete and accurate before submission to IFA g)Ensure that IFA is provided all required reports in a timely fashion and or submitted on time, if there is a specified deadline; such as the annual outcome and performance measure report due September 1 of each year; annual Section 3 reports (if applicable); the final Section 3 report and the MBE/WBE report at project completion. h)Ensure that the sub-grantee is compliant with the OBDD-IFA approved loan policies (Exhibit F to this agreement) for the Valley Development Initiatives and the terms and conditions of the sub-grant agreement between the City of Woodburn and Valley Development Initiatives. i)Ensure that the subgrantee completes and documents compliance with the minimum 4 105 acceptable outreach STANDARDS for MBE/WBE, identified on page 5-6 of the 2012 GMH. j)Other miscellaneous items such as, but not limited to, the return of the executed grant contract to IFA, conduct a second public hearing and submit the affidavit of publication and final hearing minutes to IFA, and complete the project completion report to IFA etc, in accordance with the current GMH. Comply with Fair Housing Requirements. 2. Local Jurisdiction shall provide to the State a copy of an adopted Fair Housing resolution, with evidence (affidavit of publication) that such resolution has been published and documentation that the local jurisdiction distributed fair housing posters and brochures within six months of the initial drawdown of funds under the Grant Contract. Local Jurisdiction shall undertake at least one other fair housing activity within the community during the period of the Grant Contract from the list of activities identified in the 2012 GMH. §504 Certification. 3.Local Jurisdiction shall provide to the State a copy of the self- assessment checklist required by §504 of the Rehabilitation Act. Excessive Force Policy. 4. Local Jurisdiction shall provide to the State a copy of the excessive force policy adopted by the Jurisdiction. Notice of non-discriminationand Grievance Procedures. 5. Local Jurisdiction shall provide to the State evidence that the notice of nondiscrimination was published (affidavit of publication) and provided a copy of the nondiscrimination policy and a copy of the of the grievance procedures to IFA. Environmental - 6. Exemption a) - Local Jurisdiction shall provide to the State a copy of the environmental exemption for grant administration/program management and other non-construction activities prior to entering into any sub-grant agreement. Housing Rehabilitation Program Tiered Review b) - Local Jurisdiction shall provide to the state a copy of the environmental review record for the RHRRLF program as a whole and site specific environmental reviews for each loan under the RHRRLF program. Annual Section 3 Reporting 7.- By no later than January 31 of each year the local jurisdiction shall submit the required annual Section 3 report to IFA, if required. Future Grants. D. To the extent allowed by its procurement rules, Local Jurisdiction agrees to enter into a grant agreement with Subgrantee to complete Grant Administration and Program Managementfor any future CDBG revolving loan fund grants. Insurance. E.Local Jurisdiction shall maintain at all times comprehensive liability insurance and property damage insurance covering its activities and operations under this Agreement. Notices. F.Local Jurisdiction shall provide Subgrantee with a copy of all notices received by the Local Jurisdiction from the State related to the Grant Contract. Other Responsibilities. G.Local Jurisdiction shall fulfill any other responsibilities it has undertaken in this Agreement, in the Grant Contract. 5 106 III.RESPONSIBILITIES OF SUBGRANTEE; SCOPE OF SUBGRANTEE SERVICES Generally A. 1.Subgrantee shall set up, administer and operate the Regional Housing Rehabilitation Revolving Loan Fund in accordance with the OBDD-IFA approved RHRRLF policies (described in Section IIIB.2.a) 2.Subgrantee shallcarryout the RHRRLF project and will be the owner of all program policies and processes including but not limited to: all final loan decisions; owner of the loan portfolio’s compliance with the CDBG requirements; owner of future loan and repayments; and final accountability for all CDBG funds, own, control and manage the assets of the Revolving Loan Fund, subject to Policies and Procedures established pursuant to Section IIIB.2.a). 3.Subgrantee shall comply with all grant contract requirements. 4. Subgrantee shall comply with all requirements in thecurrentGMH and 2012 MOD. 5. Subgrantee shall meet with grantee monthly to ensure that all requirements in the 2012 MOD andcurrentGMH are being followed for the program. Participants will review applications and other program documentation to ensure that program requirements are being met in a timely manner. 6. Subgrantee shall work closely with the City personnel who shall be appointed to ensure compliance with program requirements on a day to day basis. 7.If the State imposes sanctions on CITY for a failure to perform or breach by VDI, the CITY has the authority to recover from VDI the funds CITY may be required to pay to the State. Grant Contract Responsibilities. B.Subgrantee shall perform the following tasks as they relate to Grant Contract #H12004 : the between IFA and the City of Woodburn Grant AdministrationGrant Contract #H12004 1.: Subgrantee shall administer the , between IFA and the City of Woodburn, in accordance with the Act and the Regulations. With the approval of the Local Jurisdiction, Subgrantee may subcontract such grant administration to a third party, only if pre-approved by IFA. Grant administration duties include: a)Prepare grant budgets, schedules and amendments; b)Draft requests for proposals and agreements with consultants for grant administration or other consulting work (if required); c)Set up systems to assure compliance with state and federal program requirements. For example: grant accounting system; d)Monitoring project progress against the grant contract scope of work and budget and reporting to elected officials; e)Prepare disbursements/cash requests, reports, and other documents for submission to the Oregon Business Development Department-Infrastructure Finance Authority; f)Participate in IFA monitoring visits and respond to monitoring findings and concerns; g)Prepare a project completion report, assisting an auditor with required grant information; h)Preparation of the environmental assessment or other environmental documents and publish required notices; 6 107 i)All items as defined in roles of participants in Valley Development Initiativespolicies. Program Management: 2.Subgrantee shall perform all tasks necessary to set up and operate the loan program called for in the Grant Contract. With the approval of the Local Jurisdiction, Subgrantee may subcontract such program management to a third partyif pre- approved by IFA. This includes the following duties: Regional Housing Rehabilitation Revolving Loan Fund: a)Subgrantee shall set up and Loan Fund manage a Regional Revolving Loan Fund (“”). Capitalization. (1)The Loan Fund shall be capitalized with the Local Jurisdiction contributions set forth in Section II.A above, with other assets that Subgrantee or others may contribute. The Loan Fund will also include income generated by such assets. The Loan Fund shall separately account for and track program income and non-program income. Policies and Procedures of the Loan Fund. (2)Subgrantee shall establish and adhere to Policies and Procedures that describe how the Loan Fund will operate, the makeup and function of the advisory and loan committee(s), how decisions will be made, where loan funds will be used each year, systems for recordkeeping, reporting and financial management, and such other matters as Subgrantee deems relevant. Loan Committee (3): The Subgrantee shall appoint a Loan Committee to make loan recommendations to the Subgrantee. Local government representatives shall not comprise a majority of Loan Committee members. The Loan Committee shall adopt loan policies consistent with the Policies and Procedures referred to above. Model Documents. (4) Subgrantee shall develop model documents, including but not limited to; loan applications, loan transfer documents, inspection forms and loan documents. Private Lender Involvement. (5)Subgrantee shall attempt recruit private lenders to participate financially in the Loan Fund, and to serve on the Loan Committee, and to make loans to eligible applicants in order to leverage public investment in the Loan Fund.Any private funds added to the Loan Fund will comply with the established policies and procedures. Maintenance of Case Files and Other Records (6): (a)For each applicant, the Subgrantee will maintain case files, including but not limited to; application, income verification documentation, lead based paint notices, sire specific environmental review, inspection reports, construction contracts etc. (b)The Subgrantee will maintain these program and financial records in accordance with the general requirements for record-keeping in Section IX of this Agreement. Staffing C. 1.Subgrantee shall assign such staff as is appropriate to carry out its responsibilities in a timely and professional manner. 2.Upon request from Local Jurisdiction, Subgrantee shall provide the names and 7 108 responsibilities of key staff assigned to this Agreement, and shall notify Local Jurisdiction in the event of changes in key staff assigned to this Agreement. IV.TIME OF PERFORMANCE Grant Contract Services: A. Grant Contract # H12004 1.Services of Subgrantee related to the between IFA and the City of Woodburn (Section III.B above) shall start on the EffectiveDate of this Agreement and end onSeptember 18, 2014 the “Project Completion Date”(24 months after the execution of the grant agreement between IFA and the City of Woodburn as entered in the Grant Contract), unless otherwise extendedby the state. 2.The Subgrantee will perform the described tasks and expend the loan funds in accordance with the Policies and Procedures no later than the 24 months after the execution of the grant agreement between IFA and the City of Woodburn. 3.All funds designated as revolving loan funds in the Project budget must be contractually committed in loan contracts to eligible homeowners within 24 months of execution of the grant agreement between IFA and the CITY.Any revolving loan funds not committed 24 months after execution of the grant agreement between IFA and the CITY will be recaptured by the State. 4.The term of this Agreement shall be extended automatically to coincide with any extensions of the Grant Contract granted by the State, and to cover any additional time period during which the Subgrantee remains in control of CDBG funds or other assets, including program income. Defederalized funds. B.The Services of Subgrantee related to the Defederalized Funds shall start on the grant closeout date of the Contract and final disbursement of all grant funds and shall continue thereafter unless terminated pursuant to Section VII. C. Subgrantee Ownership. At the close-out of the RHRRLF CDBG, the funds will remain with the subgrantee to be used in accordance with established policies and procedures. V.COMPENSATION Grant Contract Services: A. 1.Local Jurisdiction shall compensate Subgrantee for services of the Subgrantee in accordance Grant Contract #H12004 with ,between IFA and the City of Woodburn, which isattached and incorporated herein. Subject to the Local Jurisdiction receiving such funds from the State, the total amount to be paid by the Local Jurisdiction to Subgrantee for Grant Contract Services shall be $90,000 including $65,000$15,000 a)is the maximum forProgram Management, including for Environmental $25,000 Review,andis the maximum for Grant Administration; 2.Drawdowns for the payment of eligible expenses shall be made against the line item budgets Grant Contract #H12004 specified in between IFA and the City of Woodburn which is attached and incorporated herein. 3.Upon request of the Local Jurisdiction, Subgrantee shall provide such supplementary budget 8 109 information as is reasonable, in a timely fashion and in the form and content prescribed by the Local Jurisdiction. 4.Any amendments to this budget must be approved in writing by the Local Jurisdiction,the Subgrantee, and the State prior to amending the Subgrantee agreement. 5.The Local Jurisdiction will pay to the Subgrantee for Grant Administrative services under this Agreement based upon benchmarks established by theGrantee and Subgrantee, consistent with the approved budget and Local Jurisdiction policy concerning payments. Payments will be made as the established benchmarks are met by the Subgrantee. Benchmarks for this program are set forth below: H12004 a)All contracts related to the Grant Contract #between IFA and the City of $15,000. Woodburn have been executed: b)Monitoring visit from State completed and all monitoring Findings and Concerns have $8,000 been cleared: c)Final Draw, Section 3, MBE/WBE, additional fair housing activity and Project Closeout $2,000 completed: 6.The Local Jurisdiction will pay to Subgrantee for Environmental fees services under this Agreement based upon benchmarks established by the Grantee and Subgrantee, consistent with the approved budget and Local Jurisdiction policy concerning payments. Payments will be made as the established benchmarks are met by the Subgrantee. Benchmarks for this program are set forth below: a)Completion of the environmental clearance for the rehabilitation program as a whole: $15,000 7.The Local Jurisdiction will pay to the Subgrantee a percentage of Program Management fees available under this Agreement based upon benchmarks established by the Grantee and Subgrantee, consistent with the approved budget and Local Jurisdiction policy concerning payments. Payments will be made as the established benchmarks are met by the Subgrantee. Benchmarks for this program are set forth below: $15,000 a)Program and marketing materials developed and pre-approved by IFA: $20,000 b)Expenditure of 50% of the funds available for the housing rehabilitation loans: $15,000 c)All loans from RLF have been made: 8.Progress Reports: The Subgrantee shall submit monthly progress reports to the Local Jurisdiction in the form, content and frequency as required by the Local Jurisdiction. 9.In the event that there is a delay by the State or the Local Jurisdiction in processing a request for payment, which delay would otherwise cause the payment to a borrower(s) to be late, then the Local Jurisdiction agrees to advance to Subgrantee sufficient funds to pay the borrower(s). Local Jurisdiction shall be repaid when the monies are received from the State. 10.For all Housing Rehabilitation Loan Program Implementation services that take place after the CDBG grant has been drawn down and closed out, VDI shall be compensated on a transaction fee basis pursuant to current VDI Housing Rehabilitation program policies. 9 110 VI.NOTICES Notices required by this Agreement shall be in writing and mailed by first class mail. Until otherwise notified in writing, notices shall be directed to the following representatives: Local JurisdictionSubgrantee Jim HendryxCharlie Amberson Name Economic and Development Housing Rehabilitation Specialist Title Services Director 270 Montgomery Street105 High Street SE Address: Woodburn, OR 97071Salem, OR 97301 City, State, Zipcode 503-980-2445503-588-6177 Telephone: 503-982-7433503-588-6094 Fax Number: jim.hendryx@ci.woodburn.or.uscamberson@mwvcog.org Email: VII.SUSPENSION OR TERMINATION OF AGREEMENT Voluntary Termination: A.The parties may jointly agree to terminate this Agreement, upon giving the other not less than 270 days written notice of their intention to do so. . If this GrantContract #H12004 Agreement is terminated before between IFA and the City of Woodburn is administratively closed, Subgrantee shall be compensated for services rendered and expenses incurred and shall relinquish control of all funds related to such Grant and Local Jurisdiction must ensure that the funds are used as originally intended in the Grant Contract. Involuntary Termination B. Written Notice and Opportunity to Cure. 1.If either party substantially fails to comply with any material term of this Agreement, or with any of the rules, regulations or provisions referred to herein, the other party shall give written notice of such noncompliance to the party allegedly in default. The notice shall state the specific manner in which the party has failed to comply with this Agreement or rules, and shall give that party no less than 30 days, or such longer time as may be reasonably necessary under the circumstances, in which to remedy such breach. If such noncompliance is not corrected within the time provided, the party not in default may suspend or terminate this Agreement, in whole or in part. Suspension of Payments. 2.If there is evidence of fraud or misappropriation of funds, and if Local Jurisdiction has provided the written notice required by subparagraph 1, the Local Jurisdiction may withhold any further compensation to Subgrantee, until such time as the Subgrantee is in compliance with this Agreement. Remedies 3. a)If there is a material breach by Subgrantee and the Loan Fund contains any assets that are or will lead to program income, Local Jurisdiction must ensure that such assets and program income are used as originally intended. Local Jurisdiction has the following options which it may pursue in its discretion: 10 111 (1)Local Jurisdiction can require Subgrantee to relinquish control of such assets to Local Jurisdiction, which will hold them temporarily until Local Jurisdiction transfers them to another eligible non-profit. The Local Jurisdiction's receipt of these funds does not trigger program income requirements provided the intended use is the same and the Local Jurisdiction does not retain ownership of them. (2)Local Jurisdiction can require Subgrantee to relinquish control of such assets directly to another eligible Subgrantee, in which case income from such assets is not subject to Community Development Block Grant program income requirements. (3)In addition to exercising any of its options as set forth above, Local Jurisdiction shall be entitled to recover from the Subgrantee any sums that may become due as a result of a breach of this Agreement by Subgrantee. b)In the event of termination by Local Jurisdiction, Subgrantee may pursue any remedy allowed in law or equity. Subgrantee shall be compensated for any services satisfactorily performed. If the Loan Fund contains any defederalized assets, Subgrantee may retain ownership and control of such assets. VIII.GENERAL CONDITIONS General Compliance. A.Both parties agree to comply with the 2012 MOD, current GMH and the applicable requirements of Title 24 of the Code of Federal Regulations, Part 570, to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this Agreement, and to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. Conflict of Interest. B.No employee, agent, consultant, officer, or elected or appointed official of the Local Jurisdiction or the Subgrantee receiving CDBG funds who exercises or has exercised Grant Contract any functions or responsibilities with respect to CDBG activities assisted by the #H12004 ,between IFA and the City of Woodburn, or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from the activity, or have an interest or benefit from the activity, or have any interest or benefit, direct or indirect, in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, for themselves or those with whom they have family or business ties, as defined in the program policies, during his/her tenure or for one year thereafter. Independent Contractor. C. 1.Nothing in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subgrantee shall be responsible exclusively for payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers’ Compensation Insurance for its officers, agents and employees. 2.The Subgrantee and Local Jurisdiction agree that there is no relationship under this agreement except as specified herein. The Local Jurisdiction exercises no control over, is not responsible for the acts of, and assumes no specific responsibilities to or for officers, employees or agents or the public in general, except as specified in this Agreement. The Subgrantee shall not claim any relationship with the Local Jurisdiction as agent, representative or employee which is not expressly set forth in this agreement. 11 112 Third Party Beneficiaries. D.Except for the State of Oregon, nothing in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties to this Agreement, any right or remedy of any nature whatsoever. Indemnification and Hold Harmless. E.Each party shall hold harmless, defend and indemnify the other party, members of its governing board, its officers, agents and employees from any and all claims, actions, suits, charges, and judgments whatsoever that arise out of the party’s performance or nonperformance of the services or subject matter called for in this Agreement. Workers’ Compensation. F.The Subgrantee shall provide Workers’ Compensation Insurance coverage for all of its employees involved in the performance of this Agreement before work under the Agreement commences. The Subgrantee shall ensure that its contractors do likewise. Insurance and Bonding G. 1.The Subgrantee shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud, and/or undue physical damage, and shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the Local Jurisdiction, and a performance bond ensuring faithful performance of the Agreement. 2.The Subgrantee shallmaintain at all times comprehensive liability insurance and property damage insurance covering its activities and operations under this Agreement, and naming Local Jurisdiction, its officers, agents and employees as additional named insured. Such insurance shall be in the forms and amounts not less than set forth in ORS 30.270. Local Jurisdiction shall be furnished a certificate of insurance providing at least ten days written notice if the insurance coverage is canceled or reduced. Recognition of Fund Sources. H.The Subgrantee shall insure recognition of the role of the Local Jurisdiction and the federal and State of Oregon Community Development Block funding in providing services through the Agreement. All activities, facilities, and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition the Subgrantee will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. Copyright. I.If this contract results in any copyrightable material, Subgrantee shall have the right to copyright such material, subject to a right on the part of Local Jurisdiction to a royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for government purposes. Assignment. J.Either party may assign this Agreement, but only with the written consent of the other party, which consent shall not be unreasonably withheld. Amendments K. 1.The Local Jurisdiction and Subgrantee may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved, by the Local Jurisdiction’s governing body and IFA. 2.The Local Jurisdiction may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. Local Jurisdiction shall notify Subgrantee in writing of any such amendment. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications must be by written amendment, signed by both Local Jurisdiction and Subgrantee. 12 113 3.Changes to the project goals, scope of services, schedule, or budget related to the Grant Contract may be made only through a written amendment to this Agreement, signed by the Subgrantee and Local Jurisdiction. The State shall have a minimum of ten days to review proposed amendments prior to signing by the parties. Attorney Fees. L.In the event there is any court action related to this Agreement, the prevailing party shall be entitled to attorney fees and court costs, at trial and on appeal. Severability. M. If any provision of this Agreement is held invalid, the reminder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force andeffect. IX.ADMINISTRATIVE REQUIREMENTS Financial Management A. Accounting Standards. 1.To the extent applicable, Subgrantee agrees to comply with OMB Circular A-110 in all accounting principles and procedures required, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. Cost Principles. 2.To the extent applicable, Subgrantee shall administer its program in conformance with the policies, guidelines and requirements of OMB Circulars A-122, “Cost Principles for Non-Profit Organizations, or A-21, "Cost Principles for Educational Institutions," as applicable. These principles shall be applied to all costs incurred whether charged on a direct or indirect basis. Documentation and Record-keeping B. 1.Records to be Maintained a)Subgrantee shall maintain all records required by the State pursuant to 24 CFR 570.490 that are pertinent to the activities funded under this Agreement. Records related to the Grant Contract #H12004 between IFA and the City of Woodburn, including supporting documentation, shall be retained for the greater of 3 years from closeout of the grant between IFA and HUD or the period required by other applicable laws and regulations including the current GMH and the 2012 MOD. Environmental review records are to be maintained as defined in the current GMH. b)Subgrantee shall maintain any other records pertinent to this Agreement in such a manner as to clearly document the Subgrantee's performance. c)For fair housing and equal opportunity purposes, the Subgrantee’s records shall include, data on the racial, ethnic and gender characteristics of persons who are applicants for, participants in, or beneficiaries of the program. 2.Retention a)Subgrantee shall retain and keep accessible all such books, accounts, records, reports, files, and other papers, or property for a minimum of three (3) years from closeout of the grant hereunder, or such longer period as may be required by applicable law, or until the conclusion of any audit, controversy or litigation arising out of or related to this Agreement, whichever date is later. This is to include the three years from final audit, acceptance, and grant closeout by HUD. b)Property Records, the Subgrantee shall maintain real property inventory records which clearly identify all property which has been improved. 13 114 Close-Outs. 3. Subgrantee's Grant Contract obligations to the Local Jurisdiction shall not end until the State determines that the project can be administratively closed. 4.Audits and Inspections a)Audits shall be conducted annually in accordance with the Single Audit Act of 1984, 31 U.S.C. §§7501-7507 (1994) as amended by Pub. L. 104-156, §§1-3, 110 Stat. 1397 (1996) and the regulations promulgated pursuant thereto, 24 C.F.R. §§44.1-44.18 (1997), and the Office of Management and Budget (OMB) Circular A-133, 24 C.F.R. §§45.1- 45.5 (1997). b)The Local Jurisdiction, the State, and the federal government (including but not limited to the U.S. Department of Housing and Urban Development, the Inspector General, and the General Accounting Office) and their duly authorized representatives shall have access to all of Subgrantee’s books, accounts, records, reports, files, and other papers, or property pertaining to the administration, receipt and use of CDBG funds and necessary to facilitate such reviews and audits in order to perform examinations and audits and make excerpts and transcripts. c)Subgrantee shall provide citizens with reasonable access to records regarding the use of CDBG funds consistent with State and local requirements concerning the privacy of personal records. Procurement. 5.To the extent applicable,Subgrantee shall procure all materials, property or services in accordance with state law and the Uniform Administrative requirements of OMB Circular A-110 (implemented at 24 C.F.R. part 84, "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals and Other Non- Profit Organizations" or the related CDBG provision. X.OTHER CONDITIONS RELATED TO GRANT CONTRACT #H12004 between IFA and the City of Woodburn. LobbyingExhibit D, A.. Subgrantee shall sign the “Certification Regarding Lobbying,” Nondiscrimination B. The Subgrantee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. The Subgrantee will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subgrantee agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause Subgrantee and Contractor/Subcontractor Covenants C. – Compliance with Laws. This section will be reviewed after the contract between the City of Woodburn and IFAhas been executed to ensure it matches the contract between the City of Woodburn and IFA.To the extent applicable, Subgrantee agrees to comply, and cause its agents and contractors to comply, with all applicable state and federal laws, regulations, policies, guidelines and requirements with respect to the use of and the administration, distribution and expenditure of the funds provided in the 2012 MOD and the currentGMH, including but not limited to the following: 14 115 1.The Housing and Community Development Act of 1974, as amended, and with all related applicable laws, rules and regulations, including but not limited to Sections 104(d), 109 and 110 of the Act, 42 U.S.C. §5304 (1994), and the regulations promulgated pursuant thereto, and 12 U.S.C. §1735b (1994). Section 3 2. of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u) (Section 3) requires grant recipients of $200,000 or more of CDBG funds must enforce the section 3 requirements in all construction contracts of $100,000 or more, to ensure that employment and other economic and business opportunities generated by the Department of Housing and Urban Development (HUD) financial assistance, to the greatest extent feasible, are directed to public housing residents and other low-income persons, particularly recipients of government housing assistance, and business concerns that provide economic opportunities to low- and very-low income persons. IFA’s receipt of the annual non-entitlement CDBG allocation, which is in excess of $200,000 triggers the Section 3 requirements for all city/county CDBG grant recipients, entering into contracts of $100,000 or more for any construction activity, or any non-construction activity that leads to construction, such as engineering, architectural, program management work etc. As such the Section 3 requirements apply to allhousing rehabilitation revolving loan funds, if the loan funds are anticipated to be used for construction activities that will exceed $100,000 per loan or if any construction contractor which has an aggregate of $100,000 of construction contracts funded with CDBG loan funds; and, All CDBG grant recipients are required to submit: 1)An annual HUD 60002 form by no later than January 31 of each year to IFA. The reporting period is January 1 – December 31 of each year; 2)A final HUD 60002 form at the completion of the project covering any information that was not previously reported on the most recent annual submission; and 3)A Section 3 Plan prior to the first draw of non-construction funds. 4)Include the Section 3 clause into every loan agreement (Exhibit 5F of the 2012 GMH) 2.Minority Women and Emerging Small Business Activity Reporting must be completed and submitted prior to the last draw for all contracts, subcontracts, loans and grants in excess of $10,000 must be completed and submitted prior to the last draw. Title VI of the Civil Rights Act of 1964 3., 42 U.S.C. 2000d (1994), and the regulations promulgated pursuant thereto, 24 C.F.R. §§1.1-1.10 (1997). The Subgrantee will immediately take any measures necessary to effectuate this assurance. If any real property or structure thereon is provided or improved with the aid of federal financial assistance extended to the Subgrantee, this assurance shall obligate the Subgrantee, or in the case of any transfer of such property, any transferee, for the period during which the real property or structure is used for a purpose for which the federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits. Title VIII of the Civil Rights Act of 1968 4., as amended, popularly known as the Fair Housing Act, 42 U.S.C. §§3601-3631 (1994), as amended by Pub. L. 104-76, §§1-3 109 Stat. 787 (1995); Pub. L. 104-66, Title I, §1071(e), 109 Stat. 720 (1995); Pub. L. 90-284, Title VIII, §814A, as added Pub. L. 104-208, Div. A, Title II, §2302(b)(1), 110 Stat. 3009-3421 15 116 (1996); Pub. L. 104-294, title VI, §604(b)(15), (27), 110 Stat. 3507, 3508 (1996) Exec. Order No. 11,063 5., 46 F.R. 1253 (1962), reprinted as amended in 42 U.S.C. §1982 (1994) and the regulations promulgated pursuant thereto, 24 C.F.R. §§107.10-107.65 (1997). Exec. Order No. 11,246 6., 30 F.R. 12319 (1965), as amended by Exec. Order No. 11,375, 32 F.R. 14303 (1967), reprinted in 42 U.S.C. §2000e (1994), and the regulations promulgated pursuant thereto, 41 C.F.R. §§60-1.1 to 60-999.1 (1997) Age Discrimination 7.The Act of 1975, 42 U.S.C. §§6101-6107 (1994). Section 504 8. of the Rehabilitation Act of 1973, 29 U.S.C. 794 (1994). Lead-Based Paint 9.Section 302 of the Poisoning Prevention Act, 42 U.S.C. §4822 (1994), and the regulations promulgated pursuant thereto, 24 C.F.R. §§35.1-35.98 (1997). Architectural Barriers Act 10.The of 1968, 42 U.S.C. §§4151-4157 (1994). Religious Organization 11.. The Subgrantee agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 570.200(j). 12.Environmental Conditions a)Air and Water. The Subgrantee agrees to comply with the following requirements insofar as they apply to the performance of this contract: (1)Clean Air Act, 42 U.S.C., 7401, et seq. (2)Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. (3)Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. b)Flood Disaster Protection. In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC 4001), the Subgrantee shall assure that for activities located in an area identified by FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). c)Historic Preservation. The Subgrantee agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this contract. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list. 13.ORS §§294.305-294.565 (1997) and other applicable state laws for county and municipal administration. 14.Special program and grant administration requirements imposed by the State related to the 16 117 acceptance and use of funds provided under the Grant Contract or Closeout Agreement (which requirements have been approved in accordance with the procedures set forth in the current Grant Management Handbook). XI.EFFECTIVEDATE: The effectivedate of this Agreement is __________. ___________________________________ ______________________________________ LOCAL JURISDICTION SUBGRANTEE:Valley Development Initiatives ___________________________________ _______________________________________ (Signature) (Signature) By: Kathryn Figley By: Kevin Joyce (Print Name) (Print Name) Title: __Woodburn Mayor___ Title: President ___ Date: _________________________________ Date: __________________________________ 17 118 LIST OF EXHIBITS H12004 Exhibit A. Grant Contract # Exhibit B. Project Budget Exhibit C. Certification Regarding Lobbying Exhibit D. Section 3 Clause and Section 3 Plan adoption Exhibit E. Minority, Women and Emerging Small Business Exhibit F.Valley Development InitiativesOBDD-IFA approved HR program loan policies 18 119 E A. Grant Contract #H12004 XHIBIT 19 120 E B. Budget XHIBIT H12004 The following is the budgets for Project # to be administered by the Subgrantee. Unless otherwise noted, this budget may be modified only through a formal written amendment approved by the Local Jurisdiction. See Attached Budget Pages Program Management Expenses. A.Drawdowns against the balance of budgeted funds for Program Management must be based on costs actually incurred, and proportional to the percentage of HRRRLF expended. Grant Administration Expenses. B.Subgrantee must request payments for grant administration services (as defined in the Grant Management Handbook) separately from program management. Funds for grant administration may be requested in the same manner as for program management. 20 121 E C. CRL XHIBITERTIFICATION EGARDING OBBYING (Community Development Block Grant Awards of $100,000 or more) The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subgrantees shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signed President Title: Date EXHIBITD– Section 3 Clause 21 122 To comply with 24 CFR, Part 135, Section 3 of the United States Department of Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), all contractors and consultants entering into contracts of $100,000 or more shall be required to submit to the City of Woodburn evidence of compliance with a City of Woodburn applicable Section Plan and Guidelines, upon adoption by the City of Woodburn. Section 3 - Economic Opportunities for Low- and Very Low-Income Persons A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been in violation of the regulations in 24 CFR part 135. E.The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations in 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR part 135. F. Noncompliance with HUD’s regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD-assisted contracts. G. Contractor shall complete the required Section 3 report form 60002, included in the CDBG Grant 22 123 Management Handbook and submit the completed form to the city/county grant recipient with the final construction pay estimate for the project. Exhibit E - Minority, Women and Emerging Small Business (Instruction: Include if contract is $10,000 or more) Before the final payment to Contractor is made, Contractor shall submit the attached “Minority, Women and Emerging Small Business Activity Report”. Minority, Women and Emerging Small Business Activity Report reportA Section 3 contractor/subcontractor is a business The on the following page is to be concern that provides economic opportunities to low- completed by grantees, developers, sponsors, and very low-income residents of the metropolitan area builders, agencies, and/or project owners for (or non-metropolitan county), including a business reporting contract and subcontract activities of concern that is 51 percent or more owned by low- or $10,000 or more under the following programs: very low-income residents; employs a substantial Community Development Block Grants number of low- or very low-income residents; or (entitlement and small cities); Urban provides subcontracting or business development Development Action Grants; Housing opportunities to businesses owned by low- or very low- Development Grants; Multi-family Insured and income residents. Low- and very low-income residents Noninsured; Public and Indian Housing include participants in Youth build programs Authorities; and contracts entered into by established under Subtitle D of Title IV of the recipients of CDBG rehabilitation assistance. Cranston-Gonzalez National Affordable Housing Act. Contracts/subcontracts of less than $10,000 need be reported only if such contracts represent a The terms “low-income persons” and “very low-income significant portion of your total contracting persons” have the same meanings given the terms in activity. Include only contracts executed during section 3(b)(2) of the United States Housing Act of this reporting period. 1937. Low-income persons mean families (including single persons) whose incomes do not exceed 80 per This form has been modified to capture Section 3 centum of the median income for the area, as contract data in columns 7g and 7i. Section 3 determined by the Secretary, with adjustments for requires that the employment and other economic smaller and larger families, except that the Secretary opportunities generated by HUD financial may establish income ceilings higher or lower than 80 assistance for housing and community per centum of the median for the area on the basis of development programs shall, to the greatest the Secretary’s findings that such variations are extent feasible, be directed toward low- and very necessary because of prevailing levels of construction low-income persons, particularly those who are costs or unusually high or low-income families. Very recipients of government assistance for housing. low-income persons means low-income families Recipients using this form to report Section 3 (including single persons) whose incomes do not contract datamust also use Part I of form exceed 50 per centum of the median family income for HUD-60002 to report employment and training the area, as determined by the Secretary with opportunities data. Form HUD-2516 is to be adjustments for smaller and larger families, except that completed for public and Indian housing and the Secretary may establish income ceilings higher or most community development programs. Form lower than 50 per centum of the median for the area on HUD-60002 is to be completed by all other HUD the basis of the Secretary’s findings that such variations programs including State administered 23 124 community development programs covered under are necessary because of unusually high or low family Section 3.incomes. 24 125 Explanation of Codes 1. Grantee: 7d. Business Racial/Ethnic Code: Enter the name of the unit of Enter the government submitting this report.numeric code, which indicates the racial/ethnic character of the owner(s) and controller(s) of 51% of 3. Contact Person: Enter name and the business. When 51% or more is not owned and phone of person responsiblefor controlled by any single racial/ethnic category, enter maintaining and submitting contract/ the code that seems most appropriate. If the subcontract data. subcontractor ID number were provided, the code would apply to the subcontractor and not to the prime 7a. Grant Number: Enter the HUD contractor. Community Development Block Grant Identification Number (with dashes). For 7e. Woman Owned Business: Enter Yes or No. example: B-32-MC-25-0034. For Entitlement Programs and Small City 7f. Contractor Identification (ID) Number: Enter multi-year comprehensive programs, the Employer (IRS) Number of the Prime Contractor enter the latest approved grant number. as the unique identifier for prime recipient of HUD funds. Note that the Employer (IRS) Number must be 7b. Amount of Contract/Subcontract: provided for each contract/subcontract awarded. Enter the dollar amount rounded to the nearest dollar. If subcontractor ID number 7g. Section 3 Contractor: Enter Yes or No. were provided in 7f, the dollar figure 7h. Subcontractor Identification (ID) Number: would be for the subcontract only and not Enter the Employer (IRS) Number of the for the prime contract. subcontractor as the unique identifier for each 7c. Type of Trade: Enter the numeric subcontract awarded from HUD funds. When the codes which best indicates the subcontractor ID Number is provided, the respective contractor’s/subcontractor’s service. If Prime Contractor ID Number must also be provided. subcontractor ID number were provided in 7i. Section 3 Contractor: Enter Yes or No. 7f, the type of trade code would be for the subcontractor only and not for the prime 7j. Contractor/Subcontractor Name and Address: contractor. The “other” category includes Enter this information for each firm receiving supply, professional services and all other contract/subcontract activity only one time on each activities except construction and report for each firm. education/training activities. 26 127 EXHIBIT F. Valley Development Initiatives OBDD-IFA approved HR program loan policies VDI and its subcontractors will be required to meet the City’s reasonable accommodation policies and procedures and/or document adoption of their own reasonable accommodation policies. 27 128 Agenda Item October 8, 2012 TO:Honorable Mayor and City Council through City Administrator FROM: Jim Hendryx, Directorof Economic and Development Services SUBJECT: Director’s approval of Design Review 2012-01, located at 2175 N. Pacific Highway RECOMMENDATION: No action is recommended. This item is placed before the Council for information purposes in compliance with the Woodburn Development Ordinance. The Council may call up this item for review if it desires. BACKGROUND: The applicant, Fleet Sales West,requested a Type II Design Review for a 3,300 square foot addition to a 23,250 square foot commercial building and enclosure of an existing covered area of 3,582 square feet. DISCUSSION: None. FINANCIAL IMPACT: This decision is anticipated to have no public sector financial impact. Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance __x___ 129 Honorable Mayor and City Council October 8, 2012 Page 2 Zoning map Site plan with new addition shown in red, and area to be enclosed shown in blue 130 Agenda Item October 8, 2012 TO:Honorable Mayor and City Council through City Administrator FROM: Jim Hendryx, Directorof Economic & Development Services SUBJECT: Planning Commission approval of VAR 2012-04, located at 1542 Mt. Hood Avenue RECOMMENDATION: No action is recommended. This item is placed before the Council for information purposes, in compliance with the Woodburn Development Ordinance. The Council may call up this item for review if it desires. BACKGROUND: The applicant, McDonalds USA, LLC, requested a variance to reduce the landscaping in the front yard of a proposed restaurant,and to establish a pole or monument sign along Mt. Hood Avenue. The Planning Commission found that the proposed landscaping substantially complied with the proposed landscape requirements and approved a variance for plant density.The Commission also approved a variance to establish a monument signthat would meet the size limitations of the ordinance. A variance was necessary because only one pole or monument sign is allowed per frontage, and there is an existing pole signalong Mt. Hood Avenue. DISCUSSION: None. FINANCIAL IMPACT: This decision is anticipated to have no public sector financial impact. Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___ 131 Honorable Mayor and City Council October 8, 2012 Page 2 Zoning map with subject property outlined Proposed landscape plan 132 Honorable Mayor and City Council October 8, 2012 Page 3 Site plan showing sign locations(existing pole sign highlighted in blue, proposed monument sign highlighted in red) Existing pole signProposed monument sign 133