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02-25-2013 Agenda KF,M CW ATHRYN IGLEYAYOR ITY OF OODBURN HR,CW1 ORST AUSTEINOUNCILOR ARD LE,CWII ISA LLSWORTHOUNCILOR ARD CCA PMC,CWIII ITYOUNCILGENDA ETER CALLUMOUNCILOR ARD JC,CWIV AMES OXOUNCILOR ARD FL,CWV RANK ONERGANOUNCILOR ARD F25,2013–7:00.. EBRUARYPM 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.Downtown Woodburn Unidos B.Woodburn School District 5.PROCLAMATIONS/PRESENTATIONS Proclamations: None Presentations: A.2012 Crime Report1 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.** February 25, 2013Council 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 February 11, 201323 Recommended Action: Approve the minutes. B.Woodburn City Council Executive Session minutes of February26 11, 2013 Recommended Action: Approve the minutes. C.Woodburn Planning Commission minutes of January 24, 201327 Recommended Action: Accept the minutes. D.Woodburn Recreation and Park Workshop minutes of January 8, 31 2013 Recommended Action: Accept the minutes. E.Woodburn Recreation and Park Boardminutes of February 12, 32 2013 Recommended Action: Accept the minutes. F.Crime Statistics through January 201336 Recommended Action:Receive the report. 9.TABLED BUSINESS None 10.PUBLIC HEARINGS None –Members of the public wishing to comment on items of 11.GENERAL BUSINESS general business must complete and submit a speaker’s card tothe City Recorder prior to commencing this portion of the Council’s agenda. Comment time may be limited by Mayoral prerogative. A.FY 2013/14 Financial Plan40 Recommended Action:Adopt the attached FY 2013/14 Financial Plan (Budget Policies & ReductionStrategy and 5-Year Financial Forecast) via a motion. B.Transient Occupancy Grant Distribution & Proposed Three Year 55 Agreement with the Woodburn Area Chamber of Commerce February 25, 2013Council Agenda Page ii Recommended Action:Authorize the renewal of a proposed three year agreement effective June 30, 2013 through June 30, 2016 (see Exhibit A) with the Woodburn Area Chamber of Commerce. The proposed agreement provides $48,000 per year and requires program deliverables, accounting and reporting. C.Award of Construction Contract for I-5 Interchange and Transit 65 Facility–Waterline Relocation at Evergreen Extension Recommended Action:That the City Council, acting as the Local Contract Review Board,award the construction contract for the I-5 Interchange-Waterline Relocationat Evergreen Extension Project toCanby Excavating, Inc.in the amount of $180,900. D.Oregon Library Passport Program67 Recommended Action:It is recommended that the City Council authorize the City of Woodburn to participate in the Oregon LibraryPassport Program. – 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 partition PAR 2013-01 and street 71 exception EXCP 2013-01, located at 1050 N. Evergreen Road (West Coast Bank) 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 15.ADJOURNMENT February 25, 2013Council Agenda Page iii COUNCIL MEETING MINUTES FEBRUARY 11, 2013 DATECOUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY 0:01 OF MARION, STATE OF OREGON, FEBRUARY 11, 2013 CONVENED The meeting convened at 7:00 p.m. with Mayor Figley presiding. ROLL CALL Mayor Figley Present Councilor Cox Present Councilor Lonergan Present Councilor McCallum Present Councilor Morris Present Councilor Raustein Present Councilor Ellsworth Present Staff Present: City Administrator Derickson, City Attorney Shields, Public Works Director Brown,Human Resources Director Hereford, Police Chief Russell, Economic and Development Director Hendryx, Community Services Director Row, Captain Garrett, Community Relations Officer Stowers, Library Manager Hunter, IS Manager Miles, City Recorder Pierson. COMMUNITY/GOVERNMENT REPORTS 0:01 A.Chamber of Commerce – Don Judson, Executive Director of the Chamber of Commerce, informed the Council that the next Chamber Forum lunch would be taking place on Wednesday and that the guest speaker will be Alan Fox from ODOT. He also mentioned that the Distinguished Service Awards banquet will take place on March 15 and that the Annual Community Guide will be coming out in April. PRESENTATION 0:04 A.New City Website- Community Relations Officer Stowers provided the City Council an overview of the new City website. B.Oregon Library Passport Program- John Hunter, Library Manager, provided information on the Oregon Library Passport Program. Mr. Hunter explained that by participating in this program it would allow citizens of Woodburn to use the services of other libraries around the state that are also participating in the program as well as allowing visitors to Woodburn access to the services of the Woodburn Library. City Administrator Derickson stated that he will forward more information to the Council on the program and he will move towards bringing a proposed agreement to the Council in the next month. Page 1 - Council Meeting Minutes,February 11, 2013 23 COUNCIL MEETING MINUTES FEBRUARY 11, 2013 CONSENT AGENDA 0:44 A. Woodburn City Council minutes of January 28, 2013, B. Woodburn Planning Commission minutes November 29, 2012, C. 2013 OLCC Renewals. McCallum/Lonergan … adopt the Consent Agenda. PUBLIC HEARINGS 0:45 Mayor Figley declared the hearing open at 7:45 pm for the purpose of hearing public input on the 2012-2013 Supplemental Budget Request. City Administrator Derickson provided a staff report. No members of the public wished to speak in either support or opposition of the 2012-2013 Supplemental Budget Request. Mayor Figley declared the hearing closed at 7:47pm. COUNCIL BILL NO. 2918- A RESOLUTION APPROVING TRANSFERS OF FY 0:47 2012-2013 APPROPRIATIONS AND APPROVING A SUPPLEMENTAL BUDGET McCallum introduced Council Bill 2918. City Recorder Pierson read 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. 2918 duly passed. AURORA RURAL FIRE PROTECTION DISTRICT NETWORK SUPPORT 0:48 AGREEMENTLonergan /McCallum …. authorize the City Administrator to execute an Intergovernmental Agreement with the Aurora Rural Fire Protection District to provide computer and network support. CITY ADMINISTRATOR’S REPORT City Administrator Derickson informed the City Council that he will be sending them a written update on some various issues in the next day or two. MAYOR AND COUNCIL REPORTS Councilor Morris asked if City Administrator Derickson could let Council know how many IGA’s the City has for computer and network support. Mayor Figley thanked Councilor McCallum for chairing two meetings while she was out of the country. EXECUTIVE SESSION 0:52 Mayor Figley entertained a motion to adjourn into executive session under the authority of Lonergan/Morris ORS 192.660(2)(e). …. to move into executive session. The Council adjourned to executive session at 7:52 pm and reconvened at 8:05 pm. Mayor Figley stated that no action was taken by the Council while in executive session. Page 2 - Council Meeting Minutes,February 11, 2013 24 COUNCIL MEETING MINUTES FEBRUARY 11, 2013 ADJOURNMENT 1:06 Lonergan/Cox ... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:06pm. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Heather Pierson,City Recorder City of Woodburn, Oregon Page 3 - Council Meeting Minutes,February 11, 2013 25 EXECUTIVE SESSION COUNCIL MEETING MINUTES FEBRUARY 11, 2013 DATE.CONFERENCE ROOM, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, FEBRUARY 11, 2013. CONVENED. The Council met in executive session at 7:52 p.m. with Mayor Figley presiding. ROLL CALL. Mayor FigleyPresent Councilor Cox Present Councilor Lonergan Present Councilor McCallumPresent Councilor MorrisPresent Councilor Ellsworth Present Councilor Raustein Present Staff Present: City Administrator Derickson, City Attorney Shields, Economic and Development Director Hendryx , City Recorder Pierson Media Present: Doug Burkhardt, Woodburn Independent Mayor Figley reminded the Councilors, media and staff that information discussed in executive session is not to be discussed with the public. The executive session was called to: To conduct deliberations with persons designated by the governing body to negotiate real property transactions pursuant to ORS 192.660(2)(e). (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.) ADJOURNMENT. The executive session adjourned at 8:05 p.m. APPROVED_______________________________ KATHRYN FIGLEY, MAYOR ATTEST_______________________________ Heather Pierson,CityRecorder City of Woodburn, Oregon Page1 – Executive Session, Council Meeting Minutes, February 11, 2013 26 27 28 29 30 Park and Recreation Workshop Minutes January 8, 2013 5:30 – 8:15p.m. Call to Order The meeting began at 5:30 p.m. Present Position I Brent Glogau, Member (12/13) Present Position II Sofie Velasquez (12/12) Present Position III Joseph Nicoletti, Board Secretary (12/13) Present Position IV Rosetta Wangerin, Board Chair (12/13) Present Position V Bruce Thomas, Member (12/13) Present Position VI Ardis Knauf (12/12) Present Position VII Gevin Gregory(12/16) Present Staff present:Jim Row, Community Services Director; Stu Spence, Recreation Services Manager; Kristin Wierenga, Aquatics Supervisor Annual Review and Goal Setting Kristin and Stu provided a 2012 year in review presentation for the Aquatics and Recreation programs. The Board then reviewed the following eight goals identified in the 2009 Parks and Recreation Master Plan: Goal 1: Maximize the Planning Effort Goal 2: Improve Marketing, Communications, and Credibility Goal 3: Track Performance Measures Goal 4: Strategically Increase Programming and Partnerships Goal 5: Increase Cost Recovery and Funding Goal 6: Create a Cohesive Operations and Maintenance System for Recreation and Parks Goal 7: Continue to Provide an Equitable Level of Service in Existing Parks and Facilities Goal 8: Plan for Community Growth The Board concluded the meeting with a discussion of potential projects for 2013. They agreed to rank the projects for discussion at the February meeting. ______________________________ _________________________________ Joseph Nicoletti, Board Secretary Jim Row, Community Services Director Date_________________ Date___________________ Workshop Minutes Page 1 31 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes February 12, 20135:30p.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) Absent Position II (Student) Sofie Velasquez (12/13) Present Position III Joseph Nicoletti, Board Secretary (12/13) Present Position IV Rosetta Wangerin, Board Chair (12/13) Absent Position V Bruce Thomas, Member (12/13) Present Position VI Ardis Knauf (12/16) Present Position VII Gevin Gregory (12/16) Present 3.APPROVAL OF MINUTES Ardis Knauf/ Bruce Thomas- Motion to approve the January 8, 2013 annual workshop minutesas presented. The motion passed unanimously. 4.BUSINESS FROM AUDIENCE None 5.OLD BUSINESS Centennial Park Traffic Counts Jim presented the Centennial Park trafficcount data from the week of January 23-29, 2013 and compared them to the resultsfrom October 15-22, 2012. These counts will be taken quarterly over the course of one year. 6.NEW BUSINESS Election of Officers Bruce Thomas/ Ardis Knauf - Motion to elect Rosetta Wangerin as Chair and Joseph Nicoletti as Secretary for 2013. The motion passed unanimously. Park Project Rankings/ Priority The Board discussed the results of their park project ranking exercise following January’s annual workshop. They would like staff to pursue internal funding opportunities to complete the interior/ exterior Aquatic Center Painting Project. There was a significant discussion about the highest ranking park projects, including the Settlemier basketball court project and the Legion Park restroom project. Jim suggested that it might make sense to pursue a new picnic pavilion that includes restroom facilities at Legion Park. Jim and Stu wouldbe working together on this project and agreed to begin pulling some information together. If it appears tobe feasible, they wouldapply to the State’s Local Government Grant program for funding. Applications are due in mid April. Page 1of 4 32 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes February 12, 20135:30p.m. Gevin Gregory/ Sofie Velasquez - Motion to recommend that staff explore the feasibility of applying for State of Oregon Local Government Grant Program funds to construct a restroom/ picnic pavilion structure at Legion Park. The motion passed unanimously. The Board indicated that they would also like to see the Legion Park Master Plan updated and finalized to ensure that any future development at the Park is consistent with the overall design intent. Jim indicated that this is a project that should be possible to complete this year. The Board discussed the idea of expanding the existing tennis courts to include a basketball court on the southern side. They were positive on the concept, but are concerned about the need to relocate the facility if the Aquatic Center is ever expanded to include community center facilities. They would like to see if it makes sense to construct a basketball court at Legion Park. This can be explored further when the Legion Park Master Plan is updated. Removal of Wyffels Park Play Equipment Jim discussed the Wyffels Park project that Public Works has taken the lead on a project that will restore Mill Creek and the adjoining wetland areas at Wyffels Park to a more natural state. An Open House was conducted on January 23, 2013 to introduce this project to the public and surrounding neighbors and to obtain public comment for the Project Advisory Committee to review and consider as our planning phase for the project begins. The open house was attended by more than 20 people, who were generally very supportive of the project. During the meeting, we informed the attendees that the play equipment currently in Wyffels Park would be removed once the project began. During the meeting, many of the attendees recommended that the equipment be removed immediately, since it is old and outdated, isn’t used regularly, and is perceived to be unsafe.It is certainly true that the swing set and climbing structure do not come close to meeting current playground safety standards. Jim mentioned that before we remove the equipment, we wanted to run the idea by the Board. Joseph Nicoletti/ Bruce Thomas - Motion to recommend removal of the play equipment at Wyffels Park. The motion passed unanimously. 7.DIVISION REPORTS Aquatics – Kristin Wierenga Finance Review January Revenue was up almost 20% from last year & up 82% from 2 years ago o Page 2of 4 33 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes February 12, 20135:30p.m. January expenses were also up due to equipment repairs & maintenance for a 39% o monthly cost recovery rate Upcoming Events E&A Lifeguard Training was conducted this week (1 new instructor – Natasha) o Swim Instructor Training completed earlier this month – 13 new instructors o th Easter Egg Hunt March – 30 Possible Promo Video o Lighting We are planning to makesmall upgrades to exterior lighting as budget allows. o The goal is to complete smaller upgrade this budget year to the lighting for the porch area and next fiscal year to accomplisha more extensive upgrade to actual parking lot lights. Marketing We are merging Out & About with stand alone Aquatics Guide beginning o Summer 2013 We are preparing “Get Ready for Spring Specials” for March. For everynew o friend customersbring to class,they will be entered in a drawing towin a new membership. For every friend they refer in March that signs up for a membership, existing members will receive a 20% off coupon. Swim Suits and rash guards will also be on sale at30% off during March. Recreation – Stu Spence Youth Basketball - 194 youth enrolled. rdth Daddy Daughter Dinner Dance - 3 annual even took place February 9 with 110 people in attendance. This program began with about 45 people, grew to 78 last year, and continues to grow. Lots of pictures and memories. Community EdClasses - Launched 3 new classes including Kids in the Kitchen Cooking Classes, Puppy Kindergarten, and Ballroom Dance. 13 signed up for dance, 5 for the first cooking class, and 1 for puppy class. We will continue to grow these classes over time. Facebook - Woodburn Recreation & Parks is now on Facebook. This tool allows us to share information with participants in a very interactive way. O&A Redesign - The Activities Guide is getting a facelift thanks to Yes Graphics. New issues will be available the first week in April for summer activities. Page 3of 4 34 CityofWoodburn CityofWoodburn RecreationandParkBoardMinutes RecreationandParkBoardMinutes February 12, 20135:30p.m. Sponsorships - Staff continues to recruit business partners for the recreation and aquatics scholarship fund. We have met with several local businesses and will continue to recruit as time allows. Parks and Facilities – Jim Row Jim provided an overview of the new City website, which went live on January 28. 8.FUTURE BOARD BUSINESS The Board would like to see the Community Center/ Aquatic Center Expansion concept on the next agenda. The next meeting will be at 5:30 PM on March 12, 2013. 9.BOARD COMMENTS 10.ADJOURNMENT The meeting adjourned at 6:50 PM ___________________________ ________________________________ Joseph Nicoletti, Board Secretary Jim Row, Community Services Director Date_________________ Date___________________ Page 4of 4 35 36 37 38 39 Agenda Item February 25, 2013 TO:Honorable Mayor and City Council FROM:Scott C. Derickson, City Administrator SUBJECT: FY 2013/14 Financial Plan : RECOMMENDATION Adopt the attached FY 2013/14 Financial Plan (Budget Policies & Reduction Strategy and 5-Year Financial Forecast) via a motion. : BACKGROUND As has been the case for several years, the City of Woodburn faces a series of difficult financial challenges. General Fund revenues continue to remain flat while annual operating costs increase, making the City’s ability to maintain existing levels of services more difficult. In addition, the stability of City revenues - particularly General Fund revenues - has become more vulnerable to the economic downturn and less predictable from year-to-year. As a result, the City Council directed that a comprehensive set of financial planning documentsbe developed and implemented for the purposes of improving the City’s financial sustainability. This year, the City’s independent auditors commended the City Council for your efforts in developing and implementing a comprehensive set of financial/budget policies. Per Section 1 (A) of the City’s Budget Policies & Reduction Strategy, the Council reviews, updates and approves the plan on an annual basis. The attached proposed FY 2013/14 Budget Policies & Reduction Strategyremains largely unchanged for the previous year except for proposed additions: Section I (J) – Budget Changes After Adoption, Section III (O) –Shortfall Management Contingency Reserve Established and section 13 (D) –Capital Project Authorization. The attached Policies have these proposed sections highlighted for your review. Councilors will note however that the 5-Year Financial Forecast has been updated and is current with its projections. Overall, the financial plan is intended to help the City better predict cost and revenue trends from year to year, make better budget decisions via the Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___ 40 Honorable Mayor and City Council February 25, 2013 Page 2 memorializing of sound financial practices, budget administration and if necessary, reducing the City’s budget so that it is consistent with the overall goals of the City Council and the needs of the community. : DISCUSSION After having been implemented in 2011, the City has been working with the Financial Plan and 5-Year Financial Forecast as a means of managing the City’s current year budget and the FY 2013/14budget development process. : FINANCIAL IMPACT Although there is no immediate monetary impact on the City, the draft Financial Plan will help make stronger financial decisions that are in the best interests of the community and the City organization. 41 City of Woodburn Budget Policies &Reduction Strategy FY 2013/14 SECTION 1.ANNUAL REVIEW& POLICY Fiscal Responsibility A.. Per the City Council’s biannual 2011 - 2013 Adopted Goals, it will be the policy of the City of Woodburn to return the highest level (or sustain the current levels) of service with the least amount of taxpayer investment; and to plan accordingly. Balanced Budget B..The City’s Budget shall be balanced. For each fund, ongoing costs are not to exceed ongoing revenues plus available fund balances used in accordance with reserve policies. Budget Process C.. The annual budget process is intended to weigh all competing requests for City resources within expected fiscal constraints. Levels of service will increase or decrease based on the availability of recourses. Requests for new programs made outside the annual budget process are discouraged. New initiatives will be financed by reallocating existing City resources to the services with the highest priorities. Fiscal Recommendations D.. Consistent with the administrative responsibilities outlined in the Charter, the City Administrator will make fiscal recommendations to the City Council on all measures necessary to sustain current levels of service and avoid reductions in City programs, including the consideration by the City Council of new revenue sources if this is determined to be in the best interest of the community. Budget Policies Updated Annually E..The City Council will review and adopt Fiscal Year Budget Policies on an annual basis. Yearly 5-Year Forecast F..The City Council will review and approve the 5-Year Forecast (see attached Exhibit A) on an annual basis. The forecast is an estimate of future revenues and expenses and is intended to serve asan estimate and a guideline for making sound financial decisions in the current fiscal year and budget preparation. The 5-Year Forecast and the annual Budget Policies together will constitute the City’s Annual Financial Plan. Policy Direction G.. Consistent with their policy making role outlined in the Woodburn City Charter, the City Council is responsible for providing policy direction to determine the City’s overall fiscal policy. In response to the fiscal recommendations made by the City Administrator, the City Council shall consider all measures necessary to sustain current levels of service and avoid reductions in City programs, including consideration by the City Council of new revenue sources if this is determined to be in the best interest of the community. Budget H..Under the Woodburn City Charter, the City Administrator serves as Woodburn’s Budget Officer. The Finance Director assists the City Administrator with preparation and presentation of the annual budget, budget administration and the day-to-day finance operations. The Budget Officer is responsible for the administration of the annual budget and 1 42 may approve or disapprove the expenditures contained in the adopted budget if deemed in the best financial interest of the City. I. Budget Administration . As authorized by the City Charter, the City Administrator is responsible for taking actions necessary to keep expenditures within anticipated revenues, including initiating layoffs, re-organizations, downsizing, program reductions and adjustments to service levels.The City Administrator will keep the City Council informed as to any steps taken to reduce expenditures and, whenever possible, the Council will review the decisions and consider options during a mid-year budget review. Budget Changes After Adoption J..From time to time, unforeseen circumstances require department managers to reallocate resources to address current conditions, opportunities, and challenges. Most of these changes do not rise to the appropriation level which would require City Council action. When they do, City Council authorization will be requested. In addition, use of funds designated as reserved for contingencies must always be authorized by City Council. For the more routine and ordinary adjustments, the City Administrator will be responsible for authorizing budget adjustments between categories (Personnel Services, Materials & Services, Capital Outlay, &Transfers) in funds with program budgets (General Fund, Public Works Services). Adjustments within the budget categories (for all funds) will be at the discretion of the Department head, so long as the total category budget is not altered. Appropriation Level: Program (General Fund, Public Works Services) Changes to:Requires Authorization from: Program BudgetCity Council Category BudgetCity Administrator Line Item BudgetDepartment Head Appropriation Level: Category (All other Funds) Changes to:Requires Authorization from: Category BudgetCity Council Line Item BudgetDepartment Head SECTION 2. DISCRETIONARY & DEDICATED RESOURCES Recognizing Financial Limits A.. Woodburn will make a distinction between two different types of services; 1) those that are funded primarily from City discretionary resources and; 2) those that are funded primarily from dedicated resources. Discretionary Resources B.. The General Fund is the fund that collects discretionary resources to provide discretionary programs and services as recommended by the Budget Officer and approved as part of the City’s cycle. The City will continue to fund these programs primarily 2 43 from General Fund discretionary resources. These include police, park and recreation, economic development, land use financial services and other programs. Dedicated Resources C.. Dedicated services (e.g., fees, grants, utility revenues, etc.) are traditional City services that are provided primarily with dedicated funds. Dedicated resourcesare subject to restrictions via state and federal law, grant agreements and contracts, City policy and ordinances. Frequently, these resourceswill be state or federal programs that the City administers locally, such as public safety programs or transportation grants. The City will fund these programs (i.e. speed and safety belt enforcement, etc.) primarily from dedicated resources. SECTION 3. GENERAL FUNDBUDGET(DISCRETIONARY) Annual Budget Goal A..The goal shall be to prepare a budget that maintains existing high priority programs supported by the General Fund while at the same time seeking savings wherever possible. Funding for lower priority programs will be reduced or eliminated to ensure that expenditures remain in balance with resources. General Fund Emphasis B.. The highest priority shall be to conserve General Fund discretionary resources to fund high priority programs as defined by the City Council and City Administrator. Maximize City Council’s Discretion C..Wherever legally possible, revenues are to be treated as discretionary resources, rather than as dedicated to a particular program or service. The goal is to give the City Council as much flexibility as possible in allocating resources to local priorities. New Revenues D.. In order to sustain current levels of service, avoid reductions in public safety programs or increase services needed to meet community demands, the City Council may consider new discretionary revenues if it is determined to be in the best interest of the community. Use of Dedicated Funding Sources E..Whenever legally possible, funding responsibility for existing programs or activities should be transferred to appropriate dedicated funding sources, freeing up scarce discretionary resources to fund City Council priorities. Cost Efficiency F..Staff will prepare fiscally conservative budgets and will seek savings wherever a balance between cost efficiency and the quality of public service can be achieved. Materials & Services G.. Departments are to prepare “base budgets” with a goal of holding General Fund or other discretionary resources for materials and services expenditures to no more than FY2012/2013budget levels. No General Fund Street Maintenance Support H.. No discretionary General Fund revenues will be used to support street maintenance activities. General Fund street lighting transfers are exempted from this policy. The current transfer from the General Fund for street lighting will be maintained as long as it is fiscally viable. The transfer will be reviewed as approved each fiscal year as part of the budget process. Revenue Estimates I.. Departments should budget for revenues based on the best information available during the budget process. If additional information becomes available during the budget process, it should be provided to the Finance Director’s Office. Accuracy in revenue/expenditure estimates iscritical. New revenueestimates should be based on the best 3 44 information available. Subsequent annual estimates should also take into consideration the actual receipts from the previous year. Pursuit of New Departmental Revenues J..Departments shall pursue revenue sources to the fullest extent possible for all services as well as total cost identification (including indirect costs) for fee setting purposes, grants or other funding opportunities. Any new revenue sources should be used to offset the cost of existing staff and programs, rather than funding new staff or programs. Fee schedules will be reviewed annually to ensure costs are recovered.Fee schedules will be updated as part of the annual budget process. Expenditure Reductions K..Reductions in revenues may require expenditure reductions from the “base budget” level. If reductions are required, the City Administrator will be guided by the City Council’s adopted Resource Reduction Strategy. Discretionary Programs L.. New discretionary programs may be included in the Proposed Budget with the prior approval by the City Administrator and if the new program is deemed a high priority activity. The impact of new or expanded programs on overhead services (information system services, financial services, building / grounds maintenance, human resource services, budget services, etc.) shall be evaluated to determine if overhead services need to be increased due to the addition of new programs. The costs of increases in overhead services attributed to additional programs shall be included in the analysis of the total cost of new programs.Should outside funding for a program expire, the program may be terminated by the City Administrator or the City Council. Full Cost Recovery M..City staff shall make every effort to assign costs where they occur through the use of interdepartmental / interfund charges and indirect cost percentage assignments. The intent is to clearly define the actual cost of each direct service the Cityprovides internally or externally. The first priority is the recovery of overhead costs from all funds and grant programs and through the use of the City’s Indirect Cost Program/Methodology. Annual Budget Savings N.. To the extent General Fund supported departments experience savings during the year (due to position vacancies, etc.) that money should not be spent. Instead it should be saved to augment the beginning fund balance for the next fiscal yearexcept as approved by the City Administrator. Shortfall Management Contingency Reserve O.. As a result of prior year General Fund reduction strategy, the City carried reduction savings forward in anticipation of projected revenue/expense shortfalls. Consequently, beginning FY 2013/14, the City will establish a Short Fall Management Contingency Reserve (SMCR) line-item. The SMCR is intended to support General Fund operational programs and not capital expenditures. The General Fund’s SMCR willbe applied towards maintaining FY 2012/13 levels of General Fund services by bridging the difference between any operating expenses and revenues as deemed appropriate by the Budget Officer and City Council. SECTION 4. NON-GENERAL FUND / UTILITY BUDGETS(DEDICATED) Bottom-Line Emphasis A.. For activities or programs funded primarily from non- General Fund sources, Departments are to prepare “base budgets” with a goal of holding any General Fund contribution to no more than the amount provided in the current fiscal year, subjectto the 4 45 availability of funds. Whenever possible, reductions in General Fund contributions should be achieved. No Backfilling B.. General Fund discretionary dollars will not be used to back-fill any loss in water and/or sewer City utility revenue, state-shared or federal revenues, grants or dedicated funding programs (for further information, see the Resource Reduction Strategy). Revenue Estimates C.. Departments should budget for revenues based on the best information available at the time the budgets are prepared. If additional information becomes available during the budget process, it shall be provided to the Finance Department. New revenues should be estimated based on available information the first year. Subsequent annual estimates should also take into consideration actual receipts from the previous year. Overhead Cost Allocation Charges D..All non-General Fund departments should budget the amount allocated to that department in the City’s Indirect Program /Methodology. Cost Efficiency E..As with the General Fund, staff responsible for non-General Fund budgets will prepare fiscally conservative budgets and will seek savings wherever a balance between cost efficiency and the quality of public service can be achieved. Utility Revenue allocations F.. It is the policy of the City of Woodburn that revenue generated by City owned utilities will be split between capital funds and operating expenses in a manner consistent with Woodburn’s Capital improvement plans and operating requirements. The allocation, or split, of these revenues will be approved annually as part of the budget processes. General Fund Transfer Savings G.. With the exception of required “hard-dollar” grant matches, any unused or unneeded portions of budgeted General Fund transfers to non-General Fund budgets will be returned to the General Fund at the end of the fiscal year in order to increase the General Fund ending balance. Utility Rates H.. The City will maintain utility rates at a level thatensuresthat all debt service, operating and capital costs are adequately recovered. Capital costs identified in approved capital improvement plan will be used as the basis for forming the capital costs recovery portion of utility rates. System Development Charges I.. As permissible under state law, the City will pursue the recovery of infrastructure related development cost relating to water, sewer, street, storm and parks. These costs will be delineated via a defensible methodology, which will be revisedfrom time to time to ensure accuracy. Street SDCMinimum Reserve J.. The Street SDC Fund will not be depleted below $5.26 million until after the City’s contribution to the Woodburn Interchange Project has been satisfied. A Street SDC Fund balance of $4 million will be held in reserve and dedicated towards any balance outstanding on the City’s contribution to the I-5 Interchange Project. SECTION 5. FUND RESERVES &CONTINGENCIES General Fund Contingencies A..At least 10% of the General Fund’s operating appropriation shall be placed into the operating contingency to meet cash flow needs and with the expectation that most will notbe spent andwill become part of the 2012/2013 Beginning Fund Balance. The 5 46 General Fund operating contingency for 2012/2013 shall be increased if carryover resources are available in accordance with recommendations provided in the City’s long-term financial plan. General Fund Contingency Proportionality B..Where contingency is expended; overall reductions will be made to the General Fund to ensure the remaining contingency remains at 10% of the General Funds operating costs. Water & Sewer Fund Contingencies C..The Water and Sewer Funds will maintain annual contingencies of not less than 5%. SECTION 6. GRANT APPLICATIONS(ALL FUNDS) Approval to Pursue A..The City Administrator’s approval is necessary before any employee pursues lobbying efforts on matters having budget implications, and before grant applications are submitted to the granting agency. Department Heads should advise the City Administrator before official positions are taken on matters that might have budget implications. General Fund Matching Funds B.. Upon approval by the City Administrator, matching fund requirements will be presented to the City Council for final approval. SECTION 7. NEW POSITIONS, PROGRAMSAND OVERTIME(ALL FUNDS) Base Budget & New Positions A.. Departments are to prepare “base budgets” with no new regular positions unless specifically authorized by the City Administrator in advance of Budget preparations. Reorganizations of departments or programs resulting in changes in staffing or positions may be considered if the change is cost neutral or a cost savings from the current costs. No position compensation or increase will be provided beyond amounts budgeted for the position. Considerations of New Positions/Programs B..Consideration of new programs and positions will occur only if the cost of the position or program is offset by non-General Fund sources legally tied to the new position or if the cost of the position is offset by new external revenues, reductions within existing fundsand/orthe position is required to generate those revenues. Cost estimates for new positions will include office facility space, equipment, rent, utilities, supplies, related increases in overhead services, etc. Additional personnel or programs shall be requested only after service needs have been thoroughly documented or after it is substantiated that the new employees will result in increased revenue or enhanced operating efficiencies. Annual Overtime Budgets C..Departments will anticipate their annual overtime costs to be included in the Proposed Budget. Once the Budget is adopted, overtime costs are to be managed within adopted levels. No overtime costs can exceed budgeted levels without first obtaining the authorization of the City Administrator. SECTION 8. MID-YEAR BUDGET REDUCTIONS Revised Revenue or Expense Estimates A.. If additional information concerning revenue reductions or significant expense increases becomes available after the start of 2012/13fiscal year, it may be necessary to make budget adjustments.These adjustments will be made in accordance with the City Council’s adopted Resource Reduction Strategy. 6 47 SECTION 9. MID-YEAR REQUESTS, GENERAL FUND CONTINGENCY(ALL FUNDS) Non-Emergency Requests A..In those cases where a department is required to absorb an unanticipated cost beyond its control of a non-emergency nature, departmental resources must first be exhausted prior to a transfer from General Fund contingencies. Upon conducting a final financial review of departmental budgets towards the end of the year, a transfer from contingency will be made to cover unanticipated costs that could not be absorbed throughout the year. Emergency Requests B..Emergency requests during the fiscal year will be submittedto the City Administrator for recommendation and forwarded to the City Council for consideration. SECTION 10.COMPENSATION & BENEFITS (ALL FUNDS) Wage Policy A..Historically, the biggest factors forcing budget growth are increases in employee compensation and increased benefit costs. The City will have a compensation and benefit program that: 1) reflects the value of work performed by our employees, 2) compares favorably with the compensation and benefits paid for similar work in both the private and public sectors, and 3); considers the community’s ability to pay. Both our employees and the public must understand the mutual respect that such a policy warrants. Health Care & PERS Costs B.. Continue the City’s policy on wages and salary increases which evaluates the increased cost of health insurance and PERS contributions as part of the total compensation package. It is the goal of the City to reduce annual escalations of health insurance, and other benefit costs by getting the employees to bear an equitable portion of the annual premium increases and/or selecting lower cost benefit programs. Cost of Living Adjustments(COLA) C..The City Administrator will make a recommendation either to include, or not include, a COLA for non-represented employees in the Proposed Budget. All cost of living adjustments will be approved by the Budget Committee and adopted by the City Council. COLAs or other compensation provided for in collective bargaining agreements will be provided for in the annual Proposed Budget. Step Adjustments D.. Budgeted personnel services expenditures will include an amount to account for annual step adjustments for all employees who are not currently at the top of their range. Annual employee step adjustments will not exceed 5% without the expressed permission of the City Administrator. SECTION 11.BUDGET CONTROLS Legal Compliance A.. The City Administrator and Finance Director will continue to review and control departmental budgets at the “expenditure category level” (such as personnel services, materials and supplies). As such, City Administrator’s approval is necessary before actual or projected year-end expenditures are allowed to exceed total expenditure appropriations for each “expenditure category.” Personnel Services & Benefits B.. With the exception of overtime pay and temporary help accounts, which shall be developed by Department Heads with the advice of the Finance Director and the approval of the City Administrator, personnel services and benefits cost calculations will be provided by the City Administrator and the Finance Director and will be used as provided. 7 48 The City Administrator and the Finance Director will also provide estimates for insurance and internal services costs. These amounts will not be altered by Department Heads. Wages & Benefit Control C.. Positions not entitled to receive benefits will be managed in a manner that keeps them below mandatory benefit thresholds (such as PERS, health insurance, etc.).Positions will only be eligible for benefits if approved by the City Administrator and/or designated in Job Descriptions. All benefit costs must be anticipated and included in the annual Budget. One Time Revenues D.. One-time revenues will be used only for one-time expenses. SECTION 12.UN-APPROPRIATED ENDING FUND BALANCES(ALL FUNDS) Limit UnappropriatedEnding Fund Balances A.. To provide the most budget flexibility during the year, limit the use of unappropriated ending fund balances to circumstances where they are required by law. Rather than use unappropriated fund balances, the goal should be to place any monies not needed for current expenditures in the relevant funds’ operating contingencies. SECTION 13.CAPITAL IMPROVEMENT GUIDELINES Capital Improvement Program A.. A six-year Capital improvement Program will be adopted as part of the annual budget process. It will include all projects anticipated to be initiated and/or delivered in the six-year planning period. The Capital Improvement Program will be consistent with the City’s adopted Capital Improvement Master Plans. Funding availability will determine the rate at which Capital Improvement program projects are initiated or completed. Exceptions B.. The City will fund dedicated programs and services with dedicated funding sources. Exceptions may be made, on a case-by-case basis, by the Budget Committee, City Council or by the City Administrator if appropriate. One criterion will be whether the City would incur more costs elsewhere as a result of the reduction. C. Capital Planning Consideration . Recognizing that it does not necessarily make sense to fund current operations at the expense of long-term capital or planning programs, every effort will be made to continue capital and planning programs geared to the City’s long term needs. D.Capital Project Authorization . The City Council, by adopting the budget, is indicating its agreement with the Capital Improvement Plan. Because these projects can have varied beginning dates due to funding constraints, weather, staff workload, and many other factors, project expenditure approval is delegated to the City Administrator. Individual capital project budgets will be submitted to the Finance Director to verify funds availability and budgetary compliance. The City Administrator will provide final authorization prior to project commencement. Expenditures that have traditionally required City Council approval (such as major contracts) will still be presented to City Council for approval. Changes to project budgets will require Finance Director and City Administrator approval. SECTION 14. DEBT ISSUANCE (ALL FUNDS) 8 49 Debt Issuance A.. The City will only issue debt in accordance with adopted Master Debt Resolutions for Sewer and Water. General Obligation debt will only be issued in compliance with state statutes. Debt will only be issued (for all fund types) when a dedicatedresource is available to meet the required debt service and reserve. Interfund Transfers B.. Interfund transfers are allowed if the City Council determines the transfer to be in the best interest of the City. All interfund transfers will be managed consistent with state budget law. No debt will be issued without the approval of the City Administrator and authorization of the City Council. SECTION 15. ANNUAL FINANCIAL AUDIT Annual AuditRequired A.. The Oregon Municipal Audit Law (ORS 297.405 – 297.555) requires a financial audit and examination be made of the accounts and financial affairs of the City at least once a year. Consistent with State law, the City of Woodburn will conduct an annual independent audit of the preceding fiscal year. Audit Standards B.. Woodburn’s annual financial audits will be conducted in accordance with auditing standards generally accepted in the United States. Those standards require that an independent auditor plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. The audit will examine, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. The audit will also assess accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. The audit will contain an assessment of the City’s internal financial controls and procedures and make any necessary recommendations for improvement. City Administrator & Finance Director Oversight C..The City Administrator will work with the Finance Director in designating the appropriate staff needed to prepare all needed audit work products andserve as primary staff contacts with the audit firm. The City Administrator will serve as the direct audit firm contact should the audit firm encounter any difficulty in obtaining needed information, work products, timely reports or develop concerns regarding any aspect of the audit process. The Finance Director is responsible for ensuring that timely and accurate work products are delivered for the purposes of completing the annual audit within designated timelines. At a minimum, the CityAdministrator will meet with the audit firm at the beginning and conclusion of the audit process to identify issues and review any findings identified by the audit firm. Preparation of Financial Statements D..On a year-to-year basis, the City Administrator may elect to have annual financial statements prepared by City staff for the purposes of completing the annual audit. However, the City Administrator may also elect to have the audit firm prepare financial statements if deemed appropriate. Audit Deadlines & Extensions E.. Per Section 15 (F), the annual audit will be presented to the City Council no later than December 31. Consistent with State law, the annual Audit will also be filed with the Oregon Secretary of State’s Audit Division no later than December 31. 9 50 The presentation of the audit to the City Council and filing with the Secretary of State’s Office may occur later than December 31 if an audit filing extension is granted by the Secretary of State’s Office. Any and all requests for audit filing extensions must be approved in writing by both the City Administrator and the Auditor. In the event that an audit filing extension is requested and/or granted, the City Administrator will inform the City Council of the reasons for the extension request and estimated time line for completing, presenting and filing the annual audit report. Audit Presentation to City Council F..The annual audit findings will be presented to the Woodburn City Council during the first available regularly scheduled City Council meeting after the audit has been filed with the Secretary of State. The audit presentation will be conducted by a representative of the auditor or audit firm. All audits presented to the City Council must be complete and signed by a representative of the audit firm. Budget Committee Review G..A copy of the filed annual Audit will be provided to the Woodburn Budget Committee for their reviewand information. SECTION 16.PROGRAMS Discretionary Programs A..To the extent additional discretionary resources are available, high priority services areas will be slated for growth in discretionary support. Lower priority service areas will receive constant or decreasing discretionary support. Discretionary programs are as follows: Discretionary Programs Police Patrol & Public Safety Police Support Services Financial Services Legal Services Land Use Planning Economic Development Code Enforcement General Administration Library Aquatic Center Recreation Programming Parks and Park/Tree Maintenance Other General Fund Supported Non-Essential Program &Services Computer/Network transfers (capital replacements of desktop pc’s and associated servers) Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.) Community Services (i.e. flower baskets, TOT Grants –where permissible, etc. Intergovernmental Agreements that provide no direct offsetting revenues SECTION 17.RESOURCE REDUCTION STRATEGY(ALL FUNDS) Goal & Reduction Approach A..When faced with a potential reduction in resources, the City’s goal is to continue to provide services in a professional, effective and efficient manner. Consequently, to the extent possible, across-the-board reductions in expenditures will be avoided. 10 51 Case-by-Case Consideration B..Reductions will be made on a case-by-case basis, focusing on each individual program or service. If possible, reduction will be made proportional to the programs and services identified by the City Council. Moderation When Possible C..If, as a result of loss of a significant amount of discretionary resources, expenditure reductionsbecome necessary, those reductions will be made in moderate case-by-casereductions in discretionary supported programs and services. These reductions will focus first on programs funded by dedicated resources and then services funded by discretionary resources. Discretionary Contributions D..If further reductions are required, any discretionary funding that supplements or supports services mostly supported with dedicated resources will be reduced or eliminated. This may apply to programs or activities expanded or started with discretionary resources within the last few years. Exceptions may be made on a case-by-case basis by the City Council. Furlough Days E..If personnel budget/salary saving are required, the City will consider a reduced work week or furlough days prior to laying off staff. Consideration List F.. Discretionary funding for programs funded by discretionary resources will be reduced or eliminated as needed. Legal restrictions or the City’s ability to maintain minimal service levels will be considered. City service area priorities are: Consideration List Intergovernmental Agreements that provide no direct offsetting revenues Community Services (i.e. flower baskets, TOT Grants –where permissible, etc.) Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.) Computer/Network transfers (capital replacements of desktop pc’s and associated servers) Other General Fund Supported Non-Essential Program & Services Parks and Park/TreeMaintenance Recreation Programming Aquatic Center Library General Administration Code Enforcement Economic Development Land Use Planning Legal Services Financial Services Police Support Services Police Patrol & Public Safety Indirect Costs G.. The City’s overhead programs will not be prioritized, but will be sized to the need and size of the overall organization. Generally, wherever possible, the City’s goal is to make fee-supported programs self-sufficient. This includes recovering those programs’ appropriate share of the City’s overhead costs. If reductions occur, then indirect costs will be sized to the needs and size of the rest of the organization. 11 52 Dedicated Funding for Programs H..Where legally possible, the City will consider using dedicated resources to fund high priority programs related to the purpose for which the dedicated funds are received. 12 53 Agenda Item February 25, 2013 TO:The Honorable Mayor and Members of the Woodburn City Council FROM:Scott Derickson, City Administrator SUBJECT: Transient Occupancy Grant Distribution & Proposed Three-Year Agreement with the Woodburn Area Chamber of Commerce : RECOMMENDATION Authorize the renewal of a proposed three-year agreement, effective June 30, 2013 through June 30, 2016 (see Exhibit A) with the Woodburn Area Chamber of Commerce. The proposed agreement provides $48,000 per year and requires program deliverables, accounting and reporting. BACKGROUND: During the June 22, 2009 City Council meeting, the Council voted to provide the Woodburn Area Chamber of Commerce with $48,000 in Transit Occupancy Tax (TOT) funding for the purposes of promoting tourism in Woodburn. The $48,000 represented the entire TOT allocation dedicated for the promotion of tourism. At the time, the Council directed staff to work with the Chamber of Commerce to draft a multi-year agreement providing TOT funding in exchange for a defined tourism program and requirements that insure accountability for TOT expenditures. As a result of these deliberations, the City Council approved a three-year agreement in August 2010 that delineated a scope and description of proposed projects, programs, project deliverables, timelines and milestones, detailed project budgetand status reports including financial reports that outline all project expenditures. Our current three-year agreement (approved in 2010) terminates June 30, 2013. The proposed renewal of this agreement is being presented now so that both the City Council and Chamber of Commerce have definite information for preparation of their annual budgets. Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___ 55 Honorable Mayor and City Council February 25, 2013 Page 2 Ordinance 2057give the City Council broad discretion as to TOT funds and provides as follows: . All revenue received from the transient Section 23. Disposition of Tax Funds occupancy tax shall be accounted for by a separate revenue line item contained in the General Fund. Sixty-six and two- thirds percent (66 2/3%) of all revenues received from the transient occupancy tax shall be used at the Council's discretion. Thirty-three and one-third percent (33 1 /3%) of all revenues received from the transient occupancy tax shall be dedicated to uses that promote and support tourism and economic development activities. Of the monies set aside for tourism and economic development the Council may, at its discretion, expend some or all of those monies on activities conducted by the City or other agencies that advance the Council's tourism and economic development goals. Monies distributed to agencies and organizations other than the City shall be dispersed pursuant to a tourism and economic development grant program. Policies and procedures governing that program shall be established by City Council resolution. By renewing a three-year agreement with the Chamber of Commerce, it is estimated that the entire tourism allocation will be dedicated to fulfilling the agreement for the next three years. If TOT revenues result in higher than expected allocations in upcoming years, the additional revenue may be used for grant purposes. If actual TOT revenues decrease, our agreement allows the City Council to adjust the payment to the Chamber of Commerce. Subject to the conditions of the agreement, the City will provide the Chamber with $48,000 in TOT funds each year for a three year period. In addition, the agreement contains the following highlights: Requires the City to provide the Chamber an annual mid-year TOT revenue year-to-date summary. In the event that the City’s annual tourism related TOT revenue exceeds $48,000, the Chamber may submit a written request for additional funds. Should the City’s annual tourism-related TOT revenue fall below $48,000, the City Council can unilaterally adjust the annual payment to the Chamber as deemed appropriate. Solidifies the Chamber’s current practice of maintaining a separate bank account for TOT funds and not commingling TOT resources with any other Chamber funds. 56 Honorable Mayor and City Council February 25, 2013 Page 3 Continues the Chamber’s practice of developing an annual Line Item Tourism Budget (including, but not limited to personnel costs, benefit costs, and materials & supplies) and Tourism Work Plan specifically identifying tourism activities to be funded by the Chamber Tourism Fund. The Chamber agrees to maintain, at a minimum: 1) a 0.75 FTE Tourism Coordinator, 2) developing, printing and distributing anannual Woodburn Visitor’s Guide, and; 3) maintain a Visitor’s Center at the Woodburn Company Stores. The Chamber agrees to identify and track tourism related data as a means of measuring the effectiveness of the Chamber Tourism Program. The Chamber agrees to provide the City with a written semi-annual financial report and accounting of TOT funds and activities. Requires the ongoing practice of tracking all the Chamber Tourism Fund expenditures against the Chamber Tourism Program’s budget. Allows the Chamber to continue billing any indirect costs against the Chamber Tourism Fund in accordance with the Oregon Accounting Manual and state law. In no event, however, shall indirect cost charges exceed $15,000 annually. The Chamber currently bills $12,000 per year in indirect costs. The Chamber, through Woodburn Area Tourism, has put aside up to $3,000 for local tourism-related groups. These groups can apply for the grants through the Chamber. Currently, the City has budgeted $220,000 in total TOT revenues with the $48,000 being allocated to the dedicated purposes of promoting tourism. From a budgetary standpoint, Woodburn began allocating and tracking TOT grants in FY 2008/09 with the creation of a TOT General Fund revenue/expenditure line item (GF Acct/199 Non-departmental). The FY 2012/13 Budget contained $48,000,which was granted to the Chamber of Commerce in its entirety. The 2013/14 Budget, which is currently being drafted, includes another $48,000 allocation. 57 Honorable Mayor and City Council February 25, 2013 Page 4 A summary of historical TOT grants provided to the Chamber is as follows: Summary of Chamber TOT Grants: FY 2001 – Proposed 2011 FYAwarded to Chamber 2001/02$22,000 2002/03$14,764 2003/04$50,681 2004/05$26,500 2005/06$50,615 2006/07$43,899 2007/08$24,186 2008/09$61,939 2009/10$48,000 2010/11$48,000 2011/12$48,000 2012/13$48,000 2013/14 -Projected$48,000 TOTAL$534,584 FINANCIAL IMPACT: Based on Ordinance 2057 disbursement allocations, Woodburn’s current FY 2012/13 Budget provides approximately $48,000 in tourism related expenditures per the last year of our existing agreement with the Chamber of Commerce – which has already been paid. Renewal of the agreement will require the City to budget at least $48,000 in TOT tourism funding, over the next three fiscal years, contingent upon the actual TOT revenue generated. Should TOT revenues decline, the City will adjust the Chamber’s distribution accordingly. The remaining portion of TOT funding is placed in the General Fund where it supports General Fund services and programs, including public safety, economic development, City sponsored special events, etc. Increasing the amount of TOT funds dedicated to tourism would require a General Fund reduction as an offset. 58 EXHIBITA Page 1of 6 Agreement for Services between City of Woodburn and Woodburn Area Chamber of Commerce This Agreement is made and entered into by and between the City of Woodburn, an Oregon municipal corporation (hereinafter the “City”), and the Woodburn Area Chamber of Commerce, an Oregon non-profit corporation, 979 Young Street, Suite A Woodburn, Oregon, (hereinafter the “Chamber”), for tourism promotion activities, as described in this Agreement. WITNESSETH: WHEREAS, Ordinance 2057, the Transient Occupancy Tax Ordinance, imposes a Local Transient Occupancy Tax (“TOT”) consistent with the provisions of Oregon state law; and WHEREAS, the City Council may in its discretion,consistent with Oregon state law and Ordinance 2057, distribute Tourism and Economic Development Funds to qualified community organizations over a multiple year period; and WHEREAS, the Chamber is a qualified community organization capable of effectively utilizing Tourism and Economic Development Funds; and WHEREAS, the parties understand and agree that all funds paid to the Chamber under this Agreement shall be expendedto promote tourism withinthe city pursuant to applicable City regulation and Oregon state law; NOW, THEREFORE, in consideration of the terms, conditions, compensation and performances contained herein, the parties hereto do mutually agree as follows: Section 1. Term. This Agreement shall commence effective July 1, 2013 and shall terminate on June 30, 2016. Section 2. Termination. This Agreement may be terminated at any time by mutual, written consent of the parties or for convenience by either party upon written notice to the other party of 30 calendar days. Section 3. Effect of Termination. If termination of this Agreement occurs for any reason, including expirationof the Agreement, the Chamber shall return to the City the unspent balance remaining of the Chamber Tourism Fund within 10 days of termination. This sectionshall survive termination of this Agreement. Section 4. City Funding. The City shall provide to the Chamber an amount not to exceed $144,000 of TOT funding under this Agreement as provided herein: 1 – Agreement for Services 59 EXHIBITA Page 2of 6 A. The City will provide the Chamber with a $48,000 due on the second Friday of the month in July 2014, 2015, and 2016. B. The City will provide the Chamber an annual mid-year TOT revenue year-to-date summary. The mid-year summary will be due February 2014, 2015, and 2016. C. In the event that the City’s annual tourism related TOT revenue exceeds $48,000, the Chamber may submit a written request for additional funds. Any request for additional funds shall include a justification, a current accounting of the Chamber Tourism Fund, and shall be subject to the approval of the Woodburn City Council. D. Should the City’s annual tourism-related TOT revenuefall below $48,000, the City shallunilaterally adjust the annual payment to the Chamber as deemed appropriate by the Woodburn City Council. Section 5. Responsibilities of Chamber . The Chamber agrees as a condition precedent to receiving TOT funding under this Agreement to the following: A.The Chamber agrees that all TOT moneyreceived from the City pursuant to this Agreement be held in a separate bank account and not commingled with any other Chamber funds. This account shall be referred to as the Chamber Tourism Fund. B.The Chamber agrees that money in the Chamber Tourism Fund shall be spent only for the dedicated purpose of promoting tourism in Woodburn. C.The Chamber agrees to develop an annual Line Item Tourism Budget (including, but not limited, to personnel costs, benefit costs, and materials & supplies) and Tourism Work Plan specifically identifying tourism activities to be funded by the Chamber Tourism Fund. The Line Item Tourism Budget and Tourism Work Plan shall be referred to as the Chamber Tourism Program. D.The Chamber agrees to submit the Chamber Tourism Program to the City Council for review no later than May 30, 2014, 2015, and 2016. After the Chamber Tourism Programs are submitted for review, the City Administrator will contact the President of the Chamber and schedule a presentation before the City Council regarding the Chamber Tourism Program. E.The Chamber agrees as part of the Chamber Tourism Program, by use of the Chamber Tourism Fund, to accomplish the following: 2 – Agreement for Services 60 EXHIBITA Page 3of 6 (1)Fund a 0.75 FTE (30 hours per-week) Tourism Coordinator position for the exclusive purpose of implementing the Chamber Tourism Program. (2)Develop, print and distribute an annual Woodburn Visitor’s Guide. (3)Maintain a Visitor’s Center at the Woodburn Company Stores. (4)Chamber agrees to list the City of Woodburn as a sponsor on all TOT supported publications. F.The Chamber agrees to identify and track tourism related data as a means of measuring the effectiveness of the Chamber Tourism Program. This data will be included in the Chamber’s presentation of the Chamber Tourism Program to the Woodburn City Council. G.The Chamber agrees to provide the City with a written semi-annual financial report and accounting of TOT funds including: (1)A standard line item year-to-date report comparing expenses to budget. (2) A general financial summary of the Chamber Tourism Fund activities. (3)All programmatic efforts being conducted consistent with the Chamber Tourism Program. Thefinancial report shall be due in June 2014, 2015, and 2016. Section 6. Documents and Reports . The Chamber shall maintain books, records, documents and other materials that sufficiently and properly reflect all expenditures made pursuant to this Agreement. Specifically, the Chamber shall: A.Track all the Chamber Tourism Fund expenditures against the Chamber Tourism Program’s budget. B.Adequately document all expenses and activities billed to the Chamber Tourism Fund consistent with the Chamber Tourism Program. C.Establish an actual-time based allocation methodology for the purposes of billing staff time against the Chamber Tourism Fund. The use of time cards that differentiate staff time spent on eligible tourism 3 – Agreement for Services 61 EXHIBITA Page 4of 6 related activities versus other Chamber operations or functions will be considered sufficient for satisfying this requirement. D.Billany indirect costs against the Chamber Tourism Fund only in accordance with the Oregon Accounting Manual and state law. In no event, however, shall indirect cost charges exceed $15,000 annually. The City shall have full access and the right to examine and copy, during normal business hours, all of the records of the Chamber with respect to matters covered in this Agreement. Such rights shall last for ten (10) years from the date a disbursement is made hereunder. Section 7.Auditing of Records. Upon thirty (30) days prior written notice, the City or its agent shall have the right to conduct an audit or review of the Chamber’s records reasonably related to this Agreement. If an audit or review of the records determines that funds in the Chamber Tourism Fund have been inappropriately expended under this Agreement, Ordinance 2057, or state law, the Chamber shall reimburse the Chamber Tourism Fund for the full amount identified in the audit as inappropriate. If the inappropriately expended funds exceed $500, then Chamber will pay the City for the cost of the audit or review. Section 8. Compliance with Federal, State and Local Laws. The Chamber agrees to abide by all applicable federal and state statutes and regulations prohibiting employment discrimination, and any other statutes and regulations pertaining to the subject matter of this Agreement. Section 9. Authority to Execute Agreement. The Chamber represents to the City that this Agreement has been duly authorized by all necessary action on the part of the Chamber and no other corporate or other action on the part of the Chamber is necessary to authorize the execution and delivery of this Agreement. That this Agreement has been duly authorized by the Woodburn City Council and the City represents to the Chamber that the City Administrator has the power and authority to bind the City to this Agreement. Section 10. Legal Relations. Neither the Chamber, nor any employee, officer, official or volunteer of the Chamber shall be deemed to be an independent contractor, employee or volunteer of the City. No liability shall attach to the Chamber or the City by reason of entering into this Agreement except as expressly provided herein. Section 11.Indemnification. The Chamber agrees to be responsible for and assumes liability for its own negligent acts or omissions, and those of its officers, agents, officials, employees or volunteers while performing work or expending funds pursuant to this Agreement to the fullest extent provided by law, and agrees to save, indemnify, defend and hold the City harmless from any such liability. This indemnification clause shall apply to any and all causes of action arising out of performance of work or expenditures of funds under this Agreement. The provisions of this section shall survive 4 – Agreement for Services 62 EXHIBITA Page 5of 6 the expiration or termination of this Agreement with respect to any event occurring prior to expiration or termination Section 12. Nondiscrimination . The Chamber shall comply with all applicable federal, state, and local laws, rules and regulations on nondiscrimination in employment because of race, color, ancestry, national origin, religion, sex, marital status, age, medical condition, or disability. Section 13. Governing Law . This Agreement shall be governed by and construed in accordance with the law of the State of Oregon. Section 14.Severability . If any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 15.Assignment . Neither party shall assign the Agreement without written consent of the other. Section 16. Attorney Fees. In any action brought by either party under this Agreement, the losing party shall pay to the prevailing party a reasonable sum for attorney fees in such action, or arbitration or appeal Section 17.Entire Agreement . This Agreement constitutes the entire Agreement between the parties and supersedes all prior agreements, written and oral, between the parties. No modification of this Agreement shall be binding unless in writing and signed by both parties. Section 18. Notification .All correspondence and notices related to this Agreement shall be directed as follows: If directed to the City: City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 Attn: Scott Derickson, City Administrator If directed to the Chamber: 979 Young Street Suite A PO Box 194 Woodburn, Oregon 97071 Attn: Don Judson, Executive Director IN WITNESS WHEREOF, the Chamber and City have, by approval of their respective governing bodies, caused this Agreement to be executed. 5 – Agreement for Services 63 EXHIBITA Page 6of 6 WOODBURNAREACHAMBER OF COMMERCE Don Judson, Executive Director Date CITY OF WOODBURN Scott C. Derickson, City Administrator Date 6 – Agreement for Services 64 Agenda Item February25, 2013 TO:Honorable Mayor and City Council,acting as the Local Contract Review Board, through City Administrator FROM:Dan Brown, Public Works Director SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR I-5 INTERCHANGE AND TRANSIT FACILITY – WATERLINE RELOCATION AT EVERGREEN EXTENSION RECOMMENDATION: That the City Council, acting as the Local Contract Review Board,award the construction contract for the I-5 Interchange -Waterline Relocation at Evergreen Extension ProjecttoCanby Excavating, Inc. inthe amount of . $180,900 BACKGROUND: The contract involves the relocation of existing city waterline facilitiesthat are in conflict with the upcoming I-5 Interchangeand Transit FacilityProject.The project includes the relocation of three fire hydrants, 1280 lineal feet of 8” ductile Iron pipe, 470 lineal feet of 6” ductile iron pipe, 62 lineal feet of 10” ductile iron pipe, and the reconnection of existing domestic, irrigation and fire line services throughout the proposed Evergreen Road corridor. Bids for the utility relocation project were opened on February 14, 2013.A total of thirteen (13) bids were received. Eight (8) bids were received from responsible, pre-qualified Bidders. Five (5) bids were nonresponsive. Offers received are as follows: No:NameAmount 1 Canby Excavating, Inc $180,900.00 2 Jeff Kersey Construction $202,257.60 3 Kerr Contractors, Inc. $218,842.00 4 M&M Earthworks $220,400.00 K&E Excavating 5$226,697.00 6 ML Houck Construction $233,279.50 Agenda Item Review:City Administrator ___x__City Attorney ___x___Finance __x___ 65 Honorable Mayor and City Council February 25, 2013 Page 2 No:NameAmount All-Ways Excavating, USA 7$255,249.30 8 Stan Anderson Builders, LLC $257,240.84 Jesse Rodriguez Construction NR* CG Contractors, LLC NR* C&M Excavation & Utilities NR* David Roberts Contracting NR* Gelco Construction, CO NR* Engineer’s Estimate $319,898.00 NR* - Nonresponsive Bids The recommended award is 43%under the Engineer’s estimate. DISCUSSION: The timely relocation ofexisting City waterline facilities that are in conflict with the upcoming I-5 Interchange Projectis critical for minimizing delays and enabling a successful project. The contract award is in conformance with public contracting laws of the State of Oregon as outlined in ORS Chapter 279C and the lawsandregulations of the City of Woodburn, therefore, staff is recommending the contract be awarded. FINANCIAL IMPACT: The project will be funded using Street Storm CIP (363) funds as identified in the 2012/13 fiscal budget. Estimated Project Cost Summary: Design and Technical Services $20,000.00 Construction Contract $180,900.00 Construction Contingency $15,000.00 Construction Management & Inspection $32,000.00 Total Estimated Project Cost$ 247,900.00 Budgeted Project Cost Estimate $250,000.00 66 Agenda Item February 25, 2013 TO:Honorable Mayor and City Council through City Administrator FROM:John Hunter,Library Manager SUBJECT: Oregon Library Passport Program RECOMMENDATION: It is recommended thatthe City Council authorize the City of Woodburn to participate in the Oregon Library Passport Program. BACKGROUND: The statewide Oregon Library Passport Program(OLPP)is a three-year trial program that allows full-service patrons from participating librariesto also use any other OLPPlibrary in Oregon. The City Council heard a presentation about the program at its last meeting and requested that the staff move ahead with the next steps. A question was raisedat the City Council about the City’s ability to withdraw from the three-year program. If the City wants to withdraw from the OLPP, it may do so by providing 60 days notice. DISCUSSION: The Woodburn Public Library’sparticipation in the OLPP is expected tofoster increased usage of the Woodburn Library and yield a higher return on the City’s investment in the Libraryby expanding access to residents of surrounding communities who would otherwise have to pay for library service in Woodburn. IfClackamas County also decides to participate in the OLPPas expected,the Woodburn Librarywould likely see an increase in usage by residents of Clackamas County who live closer to the Woodburn than the Canby or Molalla libraries. The Woodburn Librarymight also see an increase in usage amongst individuals who work in Woodburn but live elsewhere. Likewise, Woodburn Library card holders would have expanded access toany other OLPP library that is convenient or advantageous to them. Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance _x____ 67 Honorable Mayor and City Council February 25, 2013 Page 2 The program is entirely voluntary at the institutional level, and patron participation is based solely on individual interest. Woodburn’s participation in the OLPP would conform to a set of parameters already agreed upon by the CCRLS library cooperative. For instance, the OLPP patrons registered at Woodburn or any other CCRLS library would be allowed to borrow no more than three items simultaneously. OLPP patrons who borrow materials from any participating library must return them to the same library and pay any fines or fees that might be accrued at that library. At its January 2013 meeting, the Library Board voted unanimouslyto support the City’s participation in the OLPP program. If the City Council authorizes the participation of the City in the OLPP, the Library Manager will sign the attached Statement of Shared Understanding. FINANCIAL IMPACT: Demand for this service is expected to be modest. Any increased usage of the Library due to the program should be easily accommodated within existing operational resources. The Library might see a minimal increase in library card fees from patrons in North Marion County who might purchase a Woodburn library card with the specific intention of using it at other OLPP libraries, such as Tualatin. Attachment: OLPP Statement of Shared Understanding 68 Oregon Library Passport Program Statement of Shared Understanding The Oregon Library Passport (OLP) Program is scheduled to begin January 1, 2013 and operate as a pilot program through December 31, 2015. Libraries are encouraged to begin participation by January 1, 2013 in order to have a large core of Participating Libraries at inception, but may join at a later date. In exchange for allowing its registered patrons to have expanded access to the resources of other participating librariesin the OLP Program, Participating Library agrees to: Establish a unique patron registration code for OLP participating patrons with library use parameters determined by the Participating Library(check out limits, holds placed, services provided, etc.) Issue local library cards to OLP Patrons who present their home library cards as program passports Participating Library will not charge OLP Patrons for registration beyond any previously established registration fee levied on other patrons as well Provide access to library materials as determined by the locally-set parameters Provide information to OLP Patrons on requirements and limits of use Compile and report statistics as requested by OLP Survey OLP Patrons as requested by OLP Provide information and feedback to continually improve the OLP Program Join and participate in the OLP email discussion list If a library wishes to withdraw from the OLP Program it will give 60 days’ notice to OLP and other Participating Libraries OLP Patrons agree to: Obtain a “Home” library card to present at other Participating Libraries as his/her passport to the OLP Program Oregon residents who live outside a public library service area may purchase a card at a neighboring library (this becomes patron’s Home Library) as passport to other Participating Libraries Comply with registration, circulation and other use policies determined by each Participating Library Be responsible for any fines and fees associated with his/her use of any Participating Library Promptly notify Home Library and any OLP Program libraries of changes in address, phone, email, etc. 69 OLP Participating Library Agreement: Please mail or FAX signed agreement to OLP Program Participating Library Agreement Coordinator: Ed Gallagher, Director Albany Public Library th Avenue SE 2450 14 Albany, OR 97322 503-917-7589 503-XXX-XXXX FAX – do you have a FAX? Participating Library Name Library Director Name Signature Designated OLP Program Liaison Mailing Address Telephone Number FAX Email Address If applicable, list names of Participating Library branches or members included with this Agreement: 70 Agenda Item February 25, 2013 TO:Honorable Mayor and City Council through City Administrator FROM: Jim Hendryx,Director of Economic & Development Services SUBJECT: Director’s approval of partition PAR 2013-01 and street exception EXCP 2013-01, located at 1050 N. Evergreen Road (West Coast Bank) 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 requested a Type II Partition to divide a 4.7 acre lot into two parcels, and a Type II Exception to Street Right-of-Way and Improvement Requirements. This is in preparation to relocating the branch of West Coast Bank currently located at 2540 Newberg Highway. The Director of Economic and Development Services approved, subject to conditions of approval. The conditions of approval require construction of a sidewalk along the west side of Country Club Road where it abuts the subject property. 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___ 71 Honorable Mayor and City Council February 25, 2013 Page 2 Preliminary plat 72 All M- Supporting the Economic impact of destinations and events in the greater Woodburn area. With the support of the City of Woodburn TOT funds we endeavor to network, promote and support A r local businesses that depend on visitors from out of our area. Ruby Wolfer Woodburn Area Tourism Coordinator 2011 -20121 BUDGET BUDGET ' j ACTUAL( 2012 -20131 2013 -2014 EXPLANANTION ;INCOME ;TOT funds $48,000.001 $48,000.00 I $48,000.00 i Contract with City of Woodburn ;Memberships 3,600.00; 1 4,000.001 4,800.00 1$75 paid by 12/31/2013; $100 thereafter !Advertising 700.001 200.001 360.00 Website; new visitor bags ;Fiesta 2,000.001 0.06 0.00 'WAT not overseeing this program in 2012 0.001 ; 0.00 0.00 ,Woodburn Proud assumed this program Flower Baskets 'Miscellaneous 400.001 300.001 400.00 Kiosk maintenance at WCS Total Income 54,700.001 52,500.001 ! 53,560.00 (EXPENSE ) 18,049.08; 18,000.00 21,600.00 1440 hours @ $15 = 30 hours /week ;Coordinator Staff 2,332.371 2,500.001 2,500.00 Use Interns and volunteers Benefits 3,900.00,1 3,600.00 3,600.00 ;$300 /month insurance (included in payroll) Payroll taxes 7,079.201 ), 2,520.00 2,890.001 10.45% of payroll Total personnel 31,360.651 26,620 00 I 30,590.00 ,Administration 792.00 Cell phone @ $301month; storage unit $36 /mo Administration 700.001 1,000.00 1,200.001 New visitor bags; seed money for WAT ads (Advertising 'Chamber reimbursement 12,000.00! 10,800.00 10,800.001 Chamber cost lower from new location Conferences 4,532.36; 1,500.00 1,800.00 IOTTA; OFEA meetings 'Event support 5,000.00 3,000.00 Tourism promotion grants Flower Basket 1 9,262.081, 0.00 0.00 Woodburn Proud assumed this program 600.001 ,WAT members; Chamber functions Meals &mileage Memberships 386.001 400.00 400.00 OTTA$195; other miscellanous Office supplies 600.00. 450.00 750.00 Flyers, brochures, maintenance $600 VIC Coordinator; $1,200 Internet/phones; ;Visitor Information Center 1,678.41; 2,000.00 3,300.00 $1,000 computer &printer; $500 volunteers Total administration 29,158.85! 21,150.00, 22,642.00 Total'Expense 60,519.50 47,770.001 53,232.00 l NET INCOME $ (5,819.50)i $ 4,730.00 $ 328.00 WAT PROJECTS 2012 -2013 1. WELCOME FRONT DOOR Responsible Work on Completed Comments Completed Underway Not yet started WAT PROJECTS 2013.2014 Completed Underway Not yet started