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December 9, 2013 Agenda KF,M CW ATHRYN IGLEYAYOR ITY OF OODBURN TAL,CW1 ERESA LONSO EONOUNCILOR ARD LE,CWII ISA LLSWORTHOUNCILOR ARD CCA PMC,CWIII ITYOUNCILGENDA ETER CALLUMOUNCILOR ARD JC,CWIV AMES OXOUNCILOR ARD FL,CWV RANK ONERGANOUNCILOR ARD D9,2013–7:00.. ECEMBERPM 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: A.The City Council meeting scheduled for December 23is cancelled. The next City Council meeting will take place on January 13, 2014at 7:00 p.m. Appointments: B.Library Board1 C.Park Board D.Planning Commission E.Budget Committee 4.COMMUNITY/GOVERNMENT ORGANIZATIONS A.Chamber of Commerce B.Woodburn School District C.Habitat for Humanity 5.PROCLAMATIONS/PRESENTATIONS Proclamations: None. Presentations: None. 6.COMMUNICATIONS None. This facility is ADA accessible. If you need special accommodation, please contact the City Recorder at 503-982-5210 at least 24 hours prior to this meeting. **Habrá intérpretes disponibles para aquéllas personas que no hablan Inglés, previo acuerdo. Comuníquese al (503) 980-2485.** December 9,2013Council Agenda Page i – This allows the public to introduce items for 7.BUSINESS FROM THE PUBLIC Council consideration not already scheduled on the agenda. –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 November 25, 20132 Recommended Action: Approve the minutes. B.Liquor License Change of Ownership/Name-Full On-Premise6 Sales Recommended Action:The Woodburn City Council recommend that the OLCC approve a Change of Ownership application for El Tule Taqueria. C.Crime Statistics through October 20138 Recommended Action: Receive the report. D.Appointment as Vice-Chair of Legal Advocacy Committee 14 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 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.2941-A Resolution Entering into an Agreement 15 with Woodburn School District 103 for the Purpose of Collecting a Construction Excise Tax as Provided by State Law and Authorizing the City Administrator to sign said Agreement Recommended Action:It is recommended the City Council adopt the attached resolution authorizing the City Administrator to renew an intergovernmental agreement, for a period of three (3) years, with the Woodburn School District for collecting the School Construction Excise Tax. December 9, 2013Council Agenda Page ii B.Draft Economic Improvement District Enabling Ordinance24 Recommended Action:Provide input regarding the attached Economic Improvement District (EID) Draft Enabling Ordinance and direct staff to continue to work with the downtown community to consider the feasibility of a downtown EID. – 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. None 13.CITY ADMINISTRATOR’S REPORT 14.MAYOR AND COUNCIL REPORTS 15.EXECUTIVE SESSION To consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed pursuant to ORS 192.660 (2)(h) To consider records that are exempt by law from public inspection pursuant to ORS 192.660 (2)(f) 16.ADJOURNMENT December 9, 2013Council Agenda Page iii Agenda Item December 4, 2013 TO:City Council FROM:Kathy Figley, Mayor SUBJECT: Committee Appointments The following appointmentaremade, subject to the approval of the Council. Please forward any adverse comments to me prior to the Council meeting on Monday, December 9, 2013. No reply is required if you approve of my decision. Library Board Position I J.D. Mitchoff (reappointment) Position II Kristen Berkey (reappointment) Position III Nancy Kirksey (reappointment) Position V Ian Niktab (new appointment) Park Board Position I Ricardo Vasquez Rodriguez (new appointment) Student Position II Sofie Velasquez (reappointment) Position IIIJoseph Nicoletti (reappointment) Position IV Rosetta Wangerin (reappointment) Position V Chris Lassen (new appointment) Planning Commission Position 6 Frank W. Comer (new appointment) Budget Committee Position I Eric Swenson (reappointment) 1 COUNCIL MEETING MINUTES NOVEMBER 25, 2013 DATECOUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF 0:00 MARION, STATE OF OREGON, NOVEMBER 25, 2013. CONVENED The meeting convened at 7:02 p.m. with Mayor Figley presiding. ROLL CALL Mayor Figley Present Councilor Cox Present Councilor Lonergan Absent Councilor McCallum Present Councilor Morris Present Councilor Ellsworth Present Councilor Alonso Leon Present Staff Present: City Administrator Derickson, City Attorney Shields, Interim Public Works Director Scott, Economic and Development Director Hendryx, Finance Director Shearer, Captain Garrett, Captain Alexander, Human Resource Director Hereford, Accounting Manager Ellerbrook, Budget and Finance Analyst Head, Communications Coordinator Horton, City Recorder Pierson ANNOUNCEMENTS 0:00 A.City Hall will be closed November 28 and 29 for the Thanksgiving Holiday. The Library and Aquatic Center will be closed on November 28 but will be open normal business hours the rest of the weekend. The Aquatic Center will be hosting its annual Black Friday sale on Friday, November 29. B.Please join us for the Annual Mayor’s Tree Lighting on Sunday, December 1. The whole family is invited to this traditional holiday event that takes place at two downtown locations. We’ll start at the Settlemier House at 5:30 p.m. to light the tree and sing some carols, led by the Dickens Carolers. We will then parade to the Downtown Plaza by candlelight, where we will light the Plaza tree, enjoy festive entertainment, hot chocolate, cookies, and maybe even be visited by Santa himself. COMMUNITY/GOVERNMENT ORGANIZATIONS 0:02 Chamber of Commerce – Don Judson, Executive Director, provided information to the Council on the Crystal Apple awards. He also mentioned that Greeters is cancelled this Friday because of the holiday, the Christmas Forum lunch will take place on December 11th and that interviews are taking place this week for the new Chamber Director. PROCLAMATIONS/PRESENTATIONS 0:05 Proclamations Honoring the Fallen Police Reserve Officer of Oregon City Page 1 - Council Meeting Minutes, November 25, 2013 2 COUNCIL MEETING MINUTES NOVEMBER 25, 2013 Presentations 2013 Mary Tennant Award for Excellence in Public Service - Mayor Figley presented the A. award to Linda Eubank and Teresa Timmons. Oregon Peace Officers Association Award Recognition - Sgt. Andy Shadrin, Corporal B. Shawn Hershberger, Officer Tom Courson and Officer Josh Rains received recognition for their heroism and professionalism under the most challenging circumstances. Officer Nightingale received recognition for his life saving rescue while off duty. Audit Report - Chuck Swank, Grove, Mueller & Swank, P.C., informed the Council that C. the 2012-2013 audit is complete and the City received an unqualified opinion. COMMUNICATIONS 0:20 November 20, 2013 Letter from Tim Potter of ODOT regarding Sequoia Trees - Mayor Figley introduced Tim Potter from ODOT and stated that he is available to answer questions. th Councilor Cox asked in regards to the November 20letter to Scott Derickson, if the drainage issue played a part in the decision to disapprove the modified design and Mr. Potter answered no. Councilor Cox asked if there is a design for the drainage yet and Mr. Potter answered yes. Councilor Cox noted that the City of Woodburn and ODOT tried to come up with a plan to save the sequoia trees and the wall and that the suggested mechanism was the drill footing to avoid damaging the roots of those Sequoia trees and that was approved by ODOT staff early on. They thought it would work but that changed to it won’t work and asked Mr. Potter if that was correct. Mr. Potter stated that it wasn’t that it wouldn’t work. He stated that the issue was not survivability of the tree but the long term structural stability of the tree and then in liability for who damaged the roots of the trees. Councilor Cox asked if ODOT and the City discussed the City taking over liability for the trees and Mr. Potter answered that that was discussed but the feedback from the DOJ was they couldn’t find a mechanism where it relieved ODOT of liability. Councilor Cox asked if Mr. Potter spoke with the two homeowners who would be affected and that if given the choice of trees or sound wall both stated that they would choose the sound wall. Mr. Potter answered yes. Councilor Cox asked if ODOT knew anything about the City’s Significant Tree Ordinance and Mr. Potter stated that they did not and only found out about it when a City employee asked about it. Page 2 - Council Meeting Minutes, November 25, 2013 3 COUNCIL MEETING MINUTES NOVEMBER 25, 2013 Mayor Figley reminded everyone that Mr. Potter is here to answer questions and not to go too far afield. Councilor Cox asked if ODOT did anything to find out the answer as to whether or not they could dig holes for the drill piling without hitting significant roots and Mr. Potter answered that they did not. Councilor Cox commented that there must have been other reasons that ODOT didn’t want to do the piling system and did want to bring the Sequoias down and it had nothing to do with the health and safety of life and safety of people around or anything it just simply had to do with the policy of ODOT. He also stated that he received an opinion from a well-respected veteran civil engineer who reviewed the plans and that his opinion was that he saw no reason the holes couldn’t be moved. Councilor Morris asked if ODOT installs sound walls anywhere else in the state and Mr. Potter answered that they install them in virtually every project near an urban area. Councilor Morris asked if ODOT purchased the trees and if the homeowners are now saying they prefer the sound wall to the tree and Mr. Potter answered yes. Councilor McCallum asked if there was a vote or petition and Mr. Potter answered that there is a legal requirement to have a vote of the affected parties. Council McCallum asked if the voting came out in favor of sound walls and Mr. Potter answered that it did. Councilor Ellsworth asked what utility conflicts are out there and Mr. Potter answered that PGE has power lines going along the sound wall and there will also be underground utilities like cable and phone. Councilor Alonso Leon asked what happens to the trees if they are cut and Mr. Potter answered that usually when they use an independent contractor the contractor owns the tree after it is cut. Councilor Cox stated that he feels that ODOT has not been negotiation in good faith. Colin Brown, 1790 Woodland Ave, stated that the Council has a duty to pay attention to the people that are in the audience and doesn’t believe that ODOT has made their case. BUSINESS FROM THE PUBLIC 1:11 Kay McEwen, 54 Smith Drive, told Council she is in favor of saving the trees if possible and showed photo’s she took of a neighborhood in Keizer that had trees by a sound wall and one that showed a sound wall with no trees. CONSENT AGENDA 1:15 A. Woodburn City Council minutes of October 28, 2013, B. Woodburn City Council Executive Session minutes of October 28, 2013, Page 3 - Council Meeting Minutes, November 25, 2013 4 COUNCIL MEETING MINUTES NOVEMBER 25, 2013 C. Woodburn Planning Commission minutes of August 22, 2013, D. Medical Marijuana Dispensaries. McCallum/Cox adopt the Consent Agenda. The motion passed unanimously. COUNCIL BILL NO. 2940 - A RESOLUTION INITIATING CONSIDERATION OF 1:16 LEGISLATIVE AMENDMENTS TO THE WOODBURN DEVELOPMENT ORDINANCE FOR THE YEAR 2013-14 Mayor Figley announced that this item is being taken off the agenda. EXPANSION OF THE WOODBURN ENTERPRISE ZONE 1:16 Economic and Development Director Hendryx provided a staff report. Councilor McCallum and Councilor Cox expressed their concerns of the cost to the City and whether there would be competition between the two cities when a developer is looking for a site. Economic Development Director stated that it would not take a lot of his time and believes it is important to bring jobs here locally. He added that the possibility of having to compete would be very remote. There was a consensus by City Council to direct staff to bring back a resolution. CITY ADMINISTRATOR’S REPORT 1:30 The City Administrator had nothing to report. MAYOR AND COUNCIL REPORTS 1:30 Councilor Morris wished everyone a happy Thanksgiving. Councilor Cox and Councilor Ellsworth concurred with Councilor Morris. Mayor Figley invited everyone to attend the tree lighting ceremony. Councilor McCallum stated that he is pleased to see people concerned about trees and Woodburn’s future and would like to make it a Council goal to look at an Urban Forest program. Councilor Alonso Leon encouraged people to volunteer. ADJOURNMENT 1:34 McCallum/Morris …. meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:34 p.m. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Heather Pierson,City Recorder City of Woodburn, Oregon Page 4 - Council Meeting Minutes, November 25, 2013 5 Agenda Item December 9, 2013 TO:Honorable Mayor and City Council through City Administrator FROM:Jason R. Alexander, Captain SUBJECT: Liquor License Change of Ownership/Name-Full On-Premise Sales RECOMMENDATION: The Woodburn City Council recommendthat the OLCC approve a Change of Ownership application for El Tule Taqueria BACKGROUND: Applicant: Vicenta Zaragoza Cabera 1196 Fox Glove St. Woodburn, Oregon 97071 503.981.9000 Business:El Tule Taqueria 450 N First St. Woodburn, Oregon 97071 503.981.9000 Owner: Vicenta Zaragoza Cabera 1196 Fox Glove St. Woodburn, Oregon 97071 503.981.9000 Aristeo Luna 1196 Fox Glove St. Woodburn, Oregon 97071 503.981.9000 License Type: -Permits beer, wine, cider, hard alcohol sales Full On-Premise Sales for on-premise consumption only. Agenda Item Review:City Administrator __x____City Attorney ___x___Finance __x___ 6 Honorable Mayor and City Council December 9, 2013 Page 2 On November 5, 2013the Woodburn Police Department received an application, requesting approval for a change of ownershipand namefor El Tule Taqueria located at 450 N. First St, Woodburn Oregon 97071.This location originally housed Cinco De Mayo, which possessed a Full On-Premise Sale license. The above mentioned applicant is applyingfor a change in ownership full on-premise sales license through the Oregon Liquor Control Commission. The business will beopen daily, Monday thru Thursday, from 11:00 am to 10:30 pm and Friday thru Sunday 11:00 am to 2:00 am. There will be food service while the business is open and alcohol will be served during this time. There will be DJ music and there will also be recorded music, karaoke, and dancing, daily.The police department has received no communication from the public or surrounding businesses in support of or against the change of ownership. DISCUSSION: The Police Department has completed a background investigation on the applicant and found nothing of a questionable nature, which would preclude the issuance of this license. FINANCIAL IMPACT: None. 7 8 9 10 11 12 13 Agenda Item December 9, 2013 TO:Honorable Mayor and City Council FROM:N. Robert Shields, City Attorney SUBJECT: Appointment as Vice-Chair of Legal Advocacy Committee : RECOMMENDATION Receive the report. : BACKGROUND/DISCUSSION As most of you are aware, I have served for some time on the Legal Advocacy Committee of the League of Oregon Cities (LOC). This LOC committee does not make policy but does recommendto the League's Executive Director when LOC should become involved in selected cases affecting cities. The committee is also sometimes asked to weigh in on the impact of particular pieces of proposed legislation. There are currently sixteen members of the committee. LOC selects the committee members based upon their interest and expertise in municipal legal issues and geographic diversity. Typically, meetings are telephonic and do not consume a lot of my time. The benefits to the City in my being aware of “cutting edge” municipal law issues are significant. LOC recently asked if I would accept the appointment as vice-chair for the 2014-2016 term and I accepted. : FINANCIAL IMPACT None. Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance __x___ 14 Agenda Item December 9, 2013 TO:Honorable Mayor and City Council FROM:Scott Derickson, City Administrator SUBJECT: Intergovernmental Agreement with the Woodburn School District for the Collection of the School Construction Excise Tax : RECOMMENDATION It is recommended the City Council adopt the attached resolution authorizing the City Administrator to renew an intergovernmental agreement, for a period of three (3)years, with the Woodburn School District for collecting the School Construction Excise Tax. : BACKGROUND In October of 2007, the City Council approved an intergovernmental agreement related to the collection of the School Construction Excise Taxwith the School District pursuant to Senate Bill 1036. SB 1036 was adopted by the 2007 legislature and went into effect on September 27, 2007. SB 1036 authorizes school districts to impose a tax of $1.00 per square foot on residential construction and $.50 per square foot on non-residential construction, and dedicates the resulting revenue to capital construction and improvements.Taxes collected for non-residential construction are limited to $25,000 per building permit or per structure, whichever is less. SB1036 also allows the School Construction Excise Tax tobe collected by the City. An intergovernmental agreement between the School District and the City is required before taxescan be collected. SB 1036, as amended, authorizes the Cityto retain up to four (4)percent of the taxes collected to offset its administrative costs. TheSchool District views the tax as a financing tool of which it must take advantage as part of its larger efforts to finance capital construction. Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___ 15 Honorable Mayor and City Council December 9, 2013 Page 2 DISCUSSION: After SB 1036 was adopted in 2007, the City Council agreed to waive the statutory tax collection fees in exchange for the School District providing the City with access to its facilities for recreational programs and an annual contribution of $1,000to the Aquatic Center related to the District’s use of the facility by its swim and water polo teams. Since the City and the District’s joint facility use is already addressed under a separate agreement and because the District no longer sponsors swim and water polo teams, the recommendation was made by City and District staff to remove those forms of consideration from the agreement and collect the statutorily allowable administrative fee, instead. Separately, City and District representatives are renegotiating the joint facility use agreement, since it is 10 years old and no longer fully reflective of each agency’s evolving facility needs and practices. Key points in the intergovernmental agreement are as follows: The City will continue to provide the forms and staff time to implement the School Construction Excise Tax collection. The City will continue to grant exemptions as provided by law. The City will maintain the revenue that is collected, in an interest-bearing account, and convey it to the School District on a quarterly basis or more frequently upon request. The City will continue, on a quarterly basis at the same time as revenues are transferred, report to the School District on building permit activity for the previous quarter, including the aggregate square footage of residential and non-residential construction, exemptions given, and amountstransferred. The School District will continue to provide written information regarding the tax that can be used to educate builders. The School District will continue to determine the validity of any exemptions granted by the City, and pursue collections for those exemptions it deems invalid. 16 Honorable Mayor and City Council December 9, 2013 Page 3 The School District will indemnify the City for any actions arising from the City’s performance under the agreement. As discussed above, pursuant to the state law, the City will institute a collection fee of four (4) percent of the tax in lieuof the in kind services previously exchanged. FINANCIAL IMPACT: The City will receive revenue from this agreement to offset administrative and processing expenses. The exact amount will depend on the amount of taxes collected, but based on recent years activity, annual revenue could be between $1,000 and $3,000. Attachment: Department of Revenue Letter 17 18 COUNCIL BILL NO. 2941 RESOLUTION NO. 2037 A RESOLUTION ENTERING INTO AN AGREEMENT WITH WOODBURN SCHOOL DISTRICT 103 FOR THE PURPOSE OF COLLECTING A CONSTRUCTION EXCISE TAX AS PROVIDED BY STATE LAW AND AUTHORIZING THE CITY ADMINISTRATOR TO SIGN SAID AGREEMENT 2007 legislation authorized school districts, as defined in ORS WHEREAS, 330.005, to impose a Construction Excise Tax to fund capital improvements to school facilities; and the Woodburn School District imposed a Construction Excise Tax WHEREAS, and entered into an intergovernmental agreement with the City to collect the tax; and the intergovernmental agreement expires on December 31, WHEREAS, 2013; and it is in the interest of both parties to renew the WHEREAS, intergovernmental agreement for an additional three (3)year period; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: That the City of Woodburn enter into an Agreement with Section 1. Woodburn School District 103 for the collection of construction excise taxes as provided by state law. That a copy of said Agreement is affixed to this Resolution as Section 2. Attachment “A” and is by this reference incorporated herein. That the City Administrator is hereby authorized to sign said Section 3. Agreement on behalf of the City. Approved as to form: City AttorneyDate Approved: Page 1- Council Bill No. Resolution No. 19 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, City Recorder City of Woodburn, Oregon Page 2- Council Bill No. Resolution No. 20 INTERGOVERNMENTAL AGREEMENT This Intergovernmental Agreement is by and between the City of Woodburn (“the City”), an Oregon municipal corporation, and Woodburn School District 103 (“the District”), a school district organized under the laws of the Stateof Oregon. 2007 legislation authorized school districts, as defined in ORS WHEREAS, 330.005, to impose a Construction Excise Tax (“CET”)to fund capital improvements to school facilitiesin accordance with ORS 320.170 to 320.189; and the District imposed a CETwithin the District and entered into an WHEREAS, intergovernmental agreement with the City to collect the tax; and the intergovernmental agreement expires on December 31, WHEREAS, 2013; and it is in the interest of both the City andthe District to renew the WHEREAS, intergovernmental agreement for an additional three (3)year period; and the parties hereto agree as follows: NOW, THEREFORE, Section 1. Information and Forms. The Cityshall provide all of the forms necessary to collect theCET. The District will create and provide: information, forms, and assistance explaining the CET; information and forms for exemptions; and any other forms or information necessary for implementation of the CET. Section 2. Staffing. The City shall provide sufficient staff to calculate and collect theCETalong with the collection of other permit fees. TheDistrict shall provide sufficient staff to implement theCETprogram. Each party continues to remain responsible for the supervision of its own staff. Section 3. Collection Dates and Term. The City agrees tocontinue to assess and collect the CETon behalf of the District. This Agreement is effective on January 1, 2014 and shall expire on December 31, 2016. IGA–WSDP1 OODBURN CHOOL ISTRICTAGE 21 Section 4. Amount of CET. Pursuant to ORS 320.176 the Oregon Department of Revenueis responsible for updating tax rate limits and notifying entities imposing construction taxes. The Department of Revenue has partnered with the Oregon Department of Education who receives updated limit calculations from the Department of Revenue and notifies the affected districts. The District shall notify the City after it receives the updated limit calculations from Department of Education and the City shall put the new rates into effect within thirty (30) days of receiving that notice. Section 5. Exemptions. If a person or entity asserts that it is exempt from theCETand files the District CET Exemption Form at the time theCETwould otherwise be due, the City shall grant the exemption. It shall be the District’s responsibility to determine the validity of the exemption and to institute collection procedures to obtain payment of the CET, as well as any other remedy the District may have under law, if the person or entity was not entitled to the exemption. Section 6. Remittance. The Cityshall deposit all monies collected for the District in an interest-bearing account, and shall remit the collectedCETto the District. Remittance shall be quarterly, by the end of the month following the end of each calendar quarter, or more frequently upon special request by the District. CETremittance and a CETReport shall be sent to the District at 965 N. Boones Ferry Road, Woodburn, OR 97071. Section 7. CET Report. Along with theCET remittance, the City shall prepare and submit to the District a report of the CETs and building permits issued for the previous quarter’s construction activities.The report shall include: the number of building permits issued that quarter; the aggregate square footage of residential construction; the aggregate square footage of non-residential construction; the number of building permits for whichCETexemptions were given; and aggregate square footage of construction for the exempted construction; the aggregate amount ofCETpaid; and the amount of CET administrative fee retained by the City. Section 8. Failure to Pay CET. Construction taxes shall be paid by the person or entity undertaking construction at the time that the permit authorizing the construction is issued. Upon a person’s or entity’s refusal to or failure to pay the CETwhen due, the City will not issue the permit. In no event shall the City be liable for failure to collect IGA–WSDP2 OODBURN CHOOL ISTRICTAGE 22 CETwhen due. Section 9. Records. The City shall make all records related to building permit activity, CETcollections, andCETexemptions available to the District, or its designated auditors, as necessary for the District to audit CETcollections. Section 10. Administrative Fee. As consideration for the above described services, theCity shall retain four (4) percent of the CET collected by the City as authorized by ORS 320.179. Prior to submitting the CET to the District, the City shall deduct this administrative fee directly from the CET collected. The amounts deducted and retained as administrative fees shall be identified on the report submitted to the District. Section 11. Defense and Indemnification. The District agrees to defend, indemnify and hold harmless the City and its officers, agents and employees, against all claims and actions, and all damages and expenses related thereto, arising from the City’sperformance of this agreement, except for those caused by the sole negligence of the City or its officers and employees. Section 12. Amendment. This Agreement may be amended by mutual written agreement of the Parties. Section 13. Termination. Either party may terminate this Agreement for any reason upon ninety (90) days written notice to the other party. the City and the District have executed this Agreement. IN WITNESS WHEREOF, CITY OF WOODBURN: WOODBURN SCHOOL DISTRICT 103 By: By: Scott DericksonCharles Ransom, Jr. Title: City AdministratorTitle: Superintendent_______________ Date: Date: IGA–WSDP3 OODBURN CHOOL ISTRICTAGE 23 Agenda Item December 9, 2013 TO:Honorable Mayor and City Councilthrough City Administrator FROM:Robyn Stowers, Urban Renewal Manager SUBJECT: Draft Economic Improvement District Enabling Ordinance RECOMMENDATION: Provide input regarding the attached Economic Improvement District (EID) Draft Enabling Ordinanceand direct staff to continue to work with the downtown community to consider the feasibility of a downtown EID. BACKGROUND: On October 28, 2013, Council received a presentation introducing Economic Improvement Districts as an alternative funding source to revitalize commercial and industrial areas around the City, such as Highway 99E, downtown and the interchange. An Economic Improvement District (EID) is a statutory funding mechanism designed to enable a community to fulfill its economic revitalization goals. It is a type of assessment district where property owners and/or businesses are assessed a fee, which is collected by the City for use in promoting and improving a specified business area. Council directed staff to prepare a draft enabling ordinance and commence outreach to the downtown community as the first identified EID. Adopting an enabling ordinance is the first step necessary in establishing an EID and provides specific requirements on how to establish districts throughout the City. The enabling ordinance alone does not create an EID. After the adoption ofan enabling ordinance, another ordinance must be adopted to establish an EID in a specific area. DISCUSSION: The following is a summary of downtown community outreach on Economic Improvement Districts after the October 28, 2013 City Council Meeting. Agenda Item Review:City Administrator __x____City Attorney ___x___Finance __x___ 24 Honorable Mayor and City Council December 9, 2013 Page 2 Introduction Letter A one page introduction letter wascreated to inform the public about the City’s interests in exploring the EID concept and how the downtown has been identified as the first potential district. EID FAQ Sheet A two page bilingual EID FAQ sheet was created as a resource to inform the public aboutthe EID concept and process. Survey A bilingual survey was created to gauge support and facilitate conversation for the EID concept. Questions are open-ended andaim to identify revitalizationprojects and determine whether businesses/property owners are interested in contributing to the solution. Surveys are available in paper formatoronline (via surveymonkey.com). Questions included: How can we improve downtown? What projects will help us achieve our goal? How much do you think these projects will cost? What do you think about sharing these costs amongst the business / property owners? Do you support the concept of an Economic Improvement District downtown? Downtown Commercial Property Owners Bilingual letters, EID FAQ sheets, and surveys were sent to all downtown commercial property owners on October 29, 2013. Downtown Businesses Bilingual letters, EID FAQ sheets, and surveys were personally delivered to all downtown business owners. This face-to-face outreach provided the opportunity to verbally inform all business owners on EIDs, gauge the support of the business community, engage in conversation, and field questions. Businesses were also given the opportunity to verbally take the survey. Downtown outreach occurred the week of November 11, 2013. Downtown Organizations A meeting was held with Nikki DeBuse, president of both downtown organizations, on October 31, 2013. A decision was made to host an EID 25 Honorable Mayor and City Council December 9, 2013 Page 3 informational session at the nextDowntown Woodburn Unidos (DWU) board meeting on November 20, 2013. The introduction letter, EID FAQ sheet, and survey were emailed to the DWU email list on November 4, 2013. City of Woodburn Website A page was created for EID on the City of Woodburn website under the Economic and Development Services section. The site page conveys the City’s interest in exploring EIDs and provides links to the survey and FAQ sheets. Community Presentation A bilingual community presentation on EID was held on November 19, 2013 at City Hall. All business owners, property owners, and Downtown Association members received the notice in the introductionletter. The presentation was also promoted in the Woodburn Independent. The presentation provided the opportunity for participants to connect with staff and network with peers on EID. Other Communication A City E-Blast sent a community update on the program November 1, 2013, andthe Woodburn Independent published an article November 6, 2013. FINANCIAL IMPACT: There is no financial impact at this time. 26 \[This enabling ordinance was drafted by the City Attorney’s Office to provide the City Council with all of the legal authority contained in Oregon state law. When, where and how this authority is exercised will involve policy decisions by the City Council on a case-by-case basis. Annotations were added to explain the ordinance.\] COUNCIL BILL NO. ORDINANCE NO. AN ORDINANCE ENABLING THE FORMATION OF ECONOMIC IMPROVEMENT DISTRICTS PURSUANT TO OREGON STATE LAW the City Councilat its October 28, 2013 meeting heard a WHEREAS, report from the Urban Renewal Managerregarding Economic Improvement Districts; and it was the consensus of the City Council that staff prepare a WHEREAS, draft enabling ordinance so that this document could be further discussed by the City Council and circulated to interested partiesand ; Oregon statutes permit cities to create Economic WHEREAS, Improvement Districts consistent with the state law requirements; NOW, THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Purpose. Section 1. A. The purpose of this Ordinance is to establish procedures for the creation of Economic Improvement Districts. B. Pursuant to ORS 223.117, the City Councilmay create an Economic Improvement District where the assessment is mandatory and applied to all properties except Exempt Properties. C. Pursuant to ORS 223.118, theCity Councilmay create an Economic Improvement District where the assessment is voluntary. Owners of property who initially object to the assessment are excluded from the assessment. The amount of the assessment for the remaining lots is determined after excluding the objecting properties. Council Bill No. Page- 1 - Ordinance No. 27 D. Pursuant to ORS 223.144, the City Council may create an Economic Improvement District by employing a business license fee to raise revenue for the cost of economic improvement and imposing this fee on the persons/entities Conducting Business within the District. E.All costs of administering and operating any type of Economic Improvement District will be paid for entirely from assessments and fees actually received from the District; the City will not pledge its credit on behalf of the District; and the City will not loan funds to the District. F. This Ordinance shall not give to any person the right to have an Economic Improvement District established. The City Councilmay decline for any reason within its sole discretion to establish a proposed Economic Improvement District. \[Under the state law, the City may establish an Economic Improvement District by: (1) a “voluntary assessment” of property owners; (2) a “mandatory” assessment” of property owners; or (3) a business license fee imposed on persons doing business. When an assessment is “voluntary”, a property owner who objects to the assessment is excluded and the assessment for the remaining property owners in the District would have to be increased. In contrast, under a “mandatory” assessment system, every property owner in the District pays an assessment share. If a business license fee is imposed, this fee is paid by the business operators (as opposed to the property owners)\] Section 2.Definitions. The following words and phrases when used in this Ordinance shall have the following meanings, except where the context requires a different meaning: A. "Advisory Committee" means, as allowed by ORS 223.119, a committee of persons representative of the owners and/ortenants of property within an Economic Improvement District and may consist of an existing association of property owners or tenants or both. B. "City Administrator” means the Woodburn City Administratoror designee. C. “Conducting Business,” means to engage in any business, trade, occupation or profession in pursuit of gain including activities carried on by a Council Bill No. Page- 2 - Ordinance No. 28 person through officers, agents and employees as well as activities carried on by a person on that persons own behalf. D. “District,” means Economic Improvement District. E. "Economic Improvement,” as provided in ORS 223.141, means: 1. The planning or management of development or improvement activities. 2. Landscaping, maintenance and provision of security for public areas. 3. The promotion of commercial activity or public events. 4. The conduct of activities in support of business recruitment and development. 5. The provision of improvements in parking systems or parking enforcement. 6. Any other economic improvement activity that specially benefits property. \[State law limits what is meant by “economic improvement” as the term is used in conjunction with the creation of Economic Improvement Districts.\] F. "Preliminary Economic Improvement Plan" means a plan setting out: 1. A description of economic improvements proposed to be carried out; 2. The number of years, to a maximum of five, in which assessments are proposed to be levied; 3. A preliminary estimate of annual cost of the proposed economic improvements; 4. The proposed boundaries designated by map or perimeter description of an Economic Improvement District within which subject properties would be assessed to finance the cost of the economic improvements; Council Bill No. Page- 3 - Ordinance No. 29 5. The proposed formulafor assessing the cost of the economic improvements against subject properties; 6. A preliminary estimate of the cost of City administration of the proposed Economic Improvement District; and 7. A statement of why the proposed economic improvements are not likely to be satisfactorily and equitably accomplished except through establishment of an Economic Improvement District. G. "Final Economic Improvement Plan" means a plan setting out: 1. A description of economic improvements to be carried out; 2. The number of years, to a maximum of five, in which assessments will be levied; 3. The annual cost of the proposed economic improvements; 4. The boundaries designated by map or perimeter description of the Economic Improvement District within which subject properties will be assessed to finance the costs of the Economic Improvement District; 5. The formula for assessing the cost of the economic improvements against subject properties; and 6. The cost of City administration of the Economic Improvement District. H. "Lot" means a lot, block, or parcel or land. I. "Owner" means the owner of the title to real property or the contract purchaser of record as shown on the last available complete assessment roll in the Office of the Marion County Assessor. J. "Subject Properties" means the real property within an Economic Improvement District except for Exempt Property. K. "Exempt Property" means any real property that is not zoned for commercial or industrial use. Council Bill No. Page- 4 - Ordinance No. 30 Section 3. Preliminary Institution of Economic Improvement District. A. TheCity Councilmay consider creation of an Economic Improvement District whenever owners of Subject Properties or persons/entities Conducting Business file with the City Recorder a petition for the establishment of a District or the City Administratorfiles a report recommending the establishment of a District. A petition or report shall contain a Preliminary Economic Improvement Plan. B. TheCity Councilmay adopt a resolution directing the City Administratorto begin the Economic Improvement District formation process if theCity Councilfinds that the economic improvements would afford a special and peculiar benefit to subject properties within the Economic Improvement District different in kind or degree from that afforded to the general public. \[The first step in the Economic Improvement District process is for either the owners of Subject Properties or persons/entities Conducting Business to file with the City Recorder a petition for the establishment of a District attached to the petition is a Preliminary Economic Improvement Plan. The City Administrator also has the power to file a report recommending the establishment of a District. The City Council then considers the petition or report, reviews the Preliminary Economic Improvement Plan, and passes a resolution if it decides to proceed with the process.\] Section 4.Final Plan and Ordinance Preparation. A. Immediately following the City Counciladoptionof a resolution under Section 3B, the City Administratorshall prepare for theCity Councila report including but not limited to: 1.Ownership of Subject Properties in the District, if the District is to be based upon property ownership; 2. Identification of the persons/entities Conducting Business within the District, if the District is to be based upon persons/entities Conducting Business within the District; 3. Status of payments of taxes and city liens and other fees and charges; Council Bill No. Page- 5 - Ordinance No. 31 4. True cash value of properties in the District, based on county tax records; 5. A proposed Final Economic Improvement Plan; and 6. Recommendations of the Advisory Committee, if one has been formed. B. The report also shall be accompanied by a proposed ordinance that: 1.States theCity Council’sintention to proceed with formal notification regarding the proposed Economic Improvement District; 2. States whether the District will be based on persons/entities Conducting Business within the District or property ownership. 3. States whether the assessments will be mandatory or voluntary; 4. Contains the information in the Final Economic Improvement Plan, which may be included by attachment of the Plan as an exhibit; and 5. Directs noticeto be given in the manner provided by Section 6. Section 5.Consideration of Final Economic Improvement Plan and Ordinance. On consideration of the report and ordinance, theCity Councilmay approve, modify, or reject the report including any aspect of the Final Economic Improvement Plan, and the ordinance. If theCity Councildetermines that the proceedings for the proposed Economic Improvement District should go forward, theCity Council shall adopt the ordinance including any modifications. Section 6.Notice. A. Following adoption of the ordinance under Section 5, the City Recorder shall mail notice to the property ownersor persons/entities Conducting Businesswithin the proposed Economic Improvement District which contains the following information: 1. TheCity Council’sintent to form an Economic Improvement District; Council Bill No. Page- 6 - Ordinance No. 32 2. Assessment on benefitted properties; 3. The formula for determining the assessment; 4. The scope of the improvements and the description of the District boundaries; 5. The estimated cost of the proposal and that it may be reduced to the amount of money actually received; 6. The classification ortypes of properties which are ExemptProperty; 7. That the proposed Final Economic Improvement Plan is on file with the City Recorder; 8. The date, time and place of the hearing; 9. That the proposal can be modified as a result of public testimony; 10. That if the District is based on property ownership, ifthe owners of property upon which greater than thirty-three percent (33%) of the total amount of the assessment is levied oppose creation of the District, then the District shall not be formed and the assessment shall not be made; and 11. That if the District is based uponpersons/entities Conducting Business within the District,if written objections are received at the public hearing from more than thirty-three percent (33%) of persons Conducting Business within the District, then the District shall not be formed and the proposed business license fee will not be imposed;and 12.Any owneror person/entityConducting Business within the District who fails to submit written objection to the formation of the District or the classification of its property before or at the public hearing on assessment shall have waived challenges to the classification. Section 7. Hearing, Exemption Process and Ordinance Establishing District. A. TheCity Councilshall hold a public hearing on the proposed Economic Improvement District at the time and place stated in the notice Council Bill No. Page- 7 - Ordinance No. 33 provided pursuant to Section 6. The public hearing shall be held no sooner than 30 days after mailing the notice. B. At the public hearing on consideration of the Districtordinance, the City Councilshall hear objections to the formation of the District, and objections to classification of property for assessment. C. If the District is based on property ownership, if the owners of property upon which greater than thirty-three percent (33%) of the total amount of the assessment is levied oppose creation of the District, then the District shall not be formed and the assessment shall not be made. If the District is based upon persons/entities Conducting Business within the District, if written objections are received at the public hearing from more than thirty-three percent (33%) of persons Conducting Business within the District, then the District shall not be formed and the proposed business license fee will not be imposed; D. TheCity Councilmay continue the hearing to such other time and place as it may deem appropriate. At the hearing, persons supporting or objecting to the proposed improvement and assessment shall be entitled to be heard. E. If theCity Council, at the conclusion of the hearing, finds that the economic improvements will afford a special and peculiar benefit to subject properties within the Economic Improvement District different in kind or degree from that afforded to the general public and that the Economic Improvement District should be established, then theCity Councilmay adopt an ordinance establishing the District. \[After notice to all interested parties the next step is for the City Council to hold a public hearing to consider theCity Administrator’s report, the Final Economic Improvement Plan andan ordinance establishing theDistrict. All the property owners (orpersons/entities Conducting Business)within the proposed area receive written notice and are invited to appear at the hearing. If the District is based on property ownership and property owners representing more than (33%) of the total amount of the assessment to be levied oppose the creation of the District, then the District shall not be formed and no assessments made. If the District is based on persons/entities Conducting Business within the District andwritten objections are received at the public hearing from more than 33% of persons/entitiesConducting Business within the District, then the District shall not be formed and the proposed business license fee will not be imposed\] Council Bill No. Page- 8 - Ordinance No. 34 Section 8.Preparation and Notice of Assessments. A. Following the City Council’sadoption of an ordinance establishing an Economic Improvement District based on the Final Economic Improvement Plan, the City Recorder shall prepare the proposed assessment for eachlot in the District that is a Subject Property and shall file a proposed assessment ordinance, with a list of proposed assessments attached, with the City Council. The amount of assessment shall be based on the cost of the economic improvements and the cost of City administration of the Economic Improvement District. B. Following preparation of the proposed assessments, the City Recorder shall mail to the owner of each lot to be assessed a notice containing the following information: 1.The description of the property being assessed. 2. The name of the District. 3. The duration of the assessment (life of the District) and the total cost of the project, the assessment formula, and the amount of the assessment on the property. 4. The time, date and place of the assessment hearing; 5. That written objections may be filed with the City Recorderprior to or at the time of the hearing. An objection to the assessment must explain the reasons the assessment is incorrect or exceeds the amount of benefit. 6. That if an owner fails to submit a written objection before or at the public hearing, the ownershall be deemed to have waived challenge to assessment; 7. That the assessment will be due and payable immediately. 8. That property included in the District and assessed cannot be withdrawn from the District and the assessment will continue through the life of the District. Council Bill No. Page- 9 - Ordinance No. 35 Section 9.Hearing on Assessment Ordinance. A. TheCity Councilshall hold a public hearing on the proposed assessment ordinance. The public hearing shall be held no sooner than 30 days after mailing the notice.At the hearing, property owners supporting or objecting, to the amount of the assessment, shall be entitled to be heard. B. Written objections shall be considered to have been received by the City Councilat the hearing if actually received at the hearing or if received by the City Recorder prior to commencement of the hearing. C. At the hearing, the City Councilshall consider any objections and may adopt, correct, modify, or revise the proposed assessment ordinance. \[Once an Economic Improvement District is created, the City Council must provide a second public hearing where property owners can address the amount of their individual assessment.\] Assessments. Section 10. A. TheCity Councilshall not levy assessments in aDistrict in any year that exceed one percent of the true cash value of all the real property located within the District. B. Any new owner of benefitted property or any owner of benefitted property that was exempted from assessment may subsequently agree to the assessment of the property. The City Councilshall apply the assessment formula to the property and apportion the costs to the property for the remaining time in which the assessment is levied. C. An assessed property may not be relieved from liability for an assessment for any reason including change of ownership. \[State law limits the amount of an annual assessment in an Economic Improvement District to one percent (1%) of the true cash value of all of the real property located in the District.Any change in property ownership does not relieve a property from the obligationto pay a levied assessment.\] Limitation on Boundaries. Section 11. The City Councilshall include within the Economic Improvement District only property that is zoned for commercial or industrial use. Council Bill No. Page- 10 - Ordinance No. 36 Section 12.Expenditure of Moneys. Money derived from assessments levied under this Ordinance and from interest earned on that money shall be spent only for the economic improvements and for the cost of City administration of the Economic Improvement District described in the Final Economic Improvement Plan. Limitation on Expenditures. Section 13. Money spent for carrying out a Final Economic Improvement Planshall be limited to money actually received from assessments or from other public or private contributions to assist in carrying out the Plan. Section 14.Administration. The City Administratorshall be responsible for administration of the economic improvements to be carried out and, pursuant to applicable law, may charge anadministrative fee for the cost of the administrative services provided by the City. 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,City Recorder City of Woodburn, Oregon Council Bill No. Page- 11 - Ordinance No. 37