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February 13, 2017 AgendaCITY OF WOODBU RN CITY COUNCIL AGENDA FEBRUARY 13, 2017- 6:00 P.M. KATHRYN FIGLEY, MAYOR MELINDA VELIZ, COUNCILOR WARD 1 LISA ELLSWORTH, COUNCILOR WARD II ROBERT CARNEY, COUNCILOR WARD III SHARON SCHAUB, COUNCILOR WARD IV FRANK LONERGAN, COUNCILOR WARD V ERIC MORRIS, COUNCILOR WARD VI CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET 6:00 PM - WORK SESSION A. Annexations/UGB Process 7:30 PM - REGULAR CITY COUNCIL MEETING 1. CALL TO ORDER AND FLAG SALUTE 2. ROLL CALL 3. ANNOUNCEMENTS AND APPOINTMENTS Announcements: None. A1212ointments: A. Woodburn Recreation and Park Board 1 - Kasi Pankey - Position III - Aldo Solano - Position V 4. COMMUNITY/GOVERNMENT ORGANIZATIONS None. 5. PROCLAMATIONS/PRESENTATIONS Proclamations: A. Encouraging the Residents of Woodburn to License their Dogs 2 Presentations: B. Mobile Crisis Team Intergovernmental Agreement 6. COMMUNICATIONS None. 7. BUSINESS FROM THE PUBLIC - This allows the public to introduce items for Council consideration not already scheduled on the agenda. This facility is ADA accessible. If you need special accommodation, please contact the City Recorder at 503-980- 6318 at least 24 hours prior to this meeting. **Habrd int6rpretes disponibles para aquellas personas que no hablan Ingl6s, previo acuerdo. Comunfquese al (503) 980-2485.** February 13, 2017 Council Agenda Page i 8. CONSENT AGENDA - Items listed on the consent agenda are considered routine and may be adopted by one motion. Any item may be removed for discussion at the request of a Council member. A. Woodburn City Council minutes of January 23, 2017 3 Recommended Action: Approve the minutes. B. Woodburn City Council Executive Session minutes of January 6 23, 2017 Recommended Action: Approve the minutes. C. Municipal Judge Appointment 7 Recommended Action: That the City Council appoint Fred Weinhouse as Woodburn Municipal Judge and authorize the Mayor to sign the enclosed employment agreement on behalf of the City. D. Private Office License Agreement with the Woodburn Area 12 Chamber of Commerce Recommended Action: It is being recommended that the City Council approve the attached agreement with the Woodburn Area Chamber of Commerce. The agreement allows the Chamber's Executive Director to utilize an existing vacant office space in City Hall for $200 per -month for a period of up to 24 months. 9. SWEARING-IN CEREMONY 10. TABLED BUSINESS None. 11. PUBLIC HEARINGS None. 12. GENERAL BUSINESS -Members of the public wishing to comment on items of general business must complete and submit a speaker's card to the City Recorder prior to commencing this portion of the Council's agenda. Comment time may be limited by Mayoral prerogative. A. Intergovernmental Agreement with Marion County for Mental 24 Health Mobile Crisis Services Recommended Action: That the City Council authorize the City Administrator to sign the enclosed Intergovernmental February 13, 2017 Council Agenda Page ii Agreement (IGA) with Marion County for Mental Health Mobile Crisis Services. B. Award Professional Services Contract for Electrician Services to 32 Engelman Electric Recommended Action: That the City Council, acting in its capacity as the Local Contract Review Board, authorize the City Administrator to enter into a Professional Services Agreement with Engelman Electric for the Electrician Services. C. FY 2017/18 Financial Plan 34 Recommended Action: Adopt the attached FY 2017-18 Financial Plan (Budget Policies & Fiscal Strategy and Five -Year Financial Forecast) via a motion. D. Acceptance of a Public Utility Easement within the 70 Development at 2499 N Front Street, Woodburn, OR 97071 (Tax Lot 051 W0811300300) Recommended Action: That City Council accepts the 5 feet wide Public Utility Easement for public utilities granted by Kerr Contractors, property owner of 2499 N Front Street, Woodburn OR 97071 (Tax Lot 051 W081300300). E. Acceptance of a Warranty Deed along the Easterly Portion of 75 the Development at 2499 N Front Street, Woodburn, OR 97071 (Tax Lot 051 W0811300300) Recommended Action: That City Council accepts the Right -of - Way Dedication granted by Woodburn Industrial Capital Group, LLC, property owner of 2499 N Front Street, Woodburn OR 97071 (Tax Lot 051 W081300300). 13. PLANNING COMMISSION OR ADMINISTRATIVE LAND USE ACTIONS - These are Planning Commission or Administrative Land Use actions that may be called up by the City Council. IZGMIT 14. CITY ADMINISTRATOR'S REPORT 15. MAYOR AND COUNCIL REPORTS 16. ADJOURNMENT February 13, 2017 Council Agenda Page iii OFF I Iii ♦ r�} B V' February 8, 2017 TO: City Council FROM: Kathy Figley, Mayor SUBJECT: Committee Appointments The following appointments are made, subject to the approval of the Council. Please forward any adverse comments to me prior to the Council meeting on Monday, February 13, 2017. No reply is required if you approve of my decision. Woodburn Recreation and Park Board Kasi Pankey - Position III Aldo Solano - Position V 1 ENCOURAGING THE RESIDENTS OF WOODBURN TO LICENSE THEIR DOGS WHEREAS, dogs provide companionship and improve the quality of life for many individuals and families living throughout our community, dogs often serve as important and loved members of our households; and WHEREAS, Marion County Dog Services supports dog safety through the County, promoting public awareness and the responsibilities associated with responsible dog ownership, proper dog care and treatment; and WHEREAS, Marion County Dog Services is committed to providing care and shelter for lost dogs until they are reunited with their families or adopted. Their goal is to return as many dogs as possible to their owners and to obtain positive outcomes for the remaining dogs; and WHEREAS, licensing your dog gives them the voice they don't have by ensuring he/she can be identified by a Marion County Dog License should they become separated from their families; and WHEREAS, Marion County Dog Services Pro -ram estimates that there are 5,680 dogs located within the municipal boundaries of the City of Woodburn with only 1,002 dogs being correctly licensed, providing only an 18% compliance rate with County Ordinance; and t7 WHERE, AS, a Dog License only costs a few dollars and can save your pets life; and WHEREAS, Dog Licenses can be purchased online at the Marion County Dog Services website or by visiting the Marion County Dog Shelter located at: 3550 Aurnsville Hwy SE, Salem Oregon; and NOW, 'THE FORE, be it proclaimed by the City of Woodburn that the City encourages all pet owners to properly license their dog with Marion County Dog Services Program, ensuring that your pets can be safely returned should they ever become separated from your household. or -family. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of Woodburn to be affixed is 13"' day of February 2017. Katbi�yn Figley, City of Woodbi: 2 COUNCIL MEETING MINUTES JANUARY 23, 2017 0:00 DATE COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JANUARY 23, 2017 CONVENED The meeting convened at 7:00 p.m. with Mayor Figley presiding. ROLL CALL Mayor Figley Present Councilor Carney Present Councilor Lonergan Present Councilor Schaub Present Councilor Morris Present Councilor Ellsworth Present Councilor Veliz Present Staff Present: City Administrator Derickson, City Attorney Shields, Community Development Director Kerr, Police Chief Ferraris, Economic Development Director Johnk, Community Relations Manager Gutierrez -Gomez, Communications Coordinator Horton, City Recorder Pierson 0:00 COMMUNITY/GOVERNMENT ORGANIZATIONS Stuart Rodgers, Executive Director of the Woodburn Chamber of Commerce, provided an update to the Council on Chamber accomplishments in 2016 and what they anticipate for 2017. 0:07 PROCLAMATIONS Mayor Figley read a proclamation declaring January 24-27, 2017 as the Great Kindness Challenge Week. 0:09 PRESENTATIONS Police Chief Ferraris provided a presentation on the City's new speed radar trailers. 0:25 CONSENT AGENDA A. Woodburn City Council minutes of January 9, 2017, B. Crime Statistics through December 2016, Lonergan/Schaub... adopt the Consent Agenda. The motion passed unanimously. COOPERATIVE AGREEMENT WITH FRIENDS OF BUNGALOW THEATER, INC. City Administrator Derickson provided staff report. Ellsworth/Schaub... authorize the City Administrator to enter into the enclosed cooperative agreement with the Friends of Bungalow Theater, Inc. (Friends). The motion passed unanimously. 0:37 UPDATE TO THE COMMUNITY CENTER FEASIBILITY STUDY City Administrator Derickson provided staff report. Schaub/Morris... authorize the City Administrator to execute an Architectural Services Agreement with Carleton Hart Architecture to update the Community Center Feasibility Study. The motion passed Page 1 - Council Meeting Minutes, January 23, 2017 I COUNCIL MEETING MINUTES JANUARY 23, 2017 unanimously. 0:46 MARION COUNTY COMMUNITY PROJECT GRANT — WOODBURN ALLEYWAY BEAUTIFICATION PROJECT This item was informational only and no action was taken by the City Council. 0:47 PLANNING COMMISSION APPROVAL OF A CONDITIONAL USE, DESIGN REVIEW, PROPERTY LINE ADJUSTMENT, SIGNIFICANT TREE REMOVAL, AND VARIANCE FOR WASHINGTON ELEMENTARY SCHOOL'S REMODEL AND EXPANSION. (CU 2016-01, DR 2016-01, VAR 2016-02, TREE 2016-01, AND PLA 2016-02) Councilor Ellsworth asked for information on the types of trees being removed. Council declined to call this item up for review. 0:50 CITY ADMINISTRATOR'S REPORT City Administrator Derickson invited the Council and the Woodburn Community to a retirement party for Jim Hendryx which will take place January 27 at 12:30 p.m. in the City Hall Council Chambers. He also reminded the Council that there is an executive session scheduled for tonight's meeting. 0:51 MAYOR AND COUNCIL REPORTS Councilor Lonergan mentioned that the Mayor's breakfast will take place on February 21 at the Methodist Church. He added that he attended a walk through downtown Woodburn with the Oregon Heritage Commission and that Economic Development Director Johnk and Community Relations Manager Gutierrez -Gomez, did a great job explaining the values of Woodburn to the Commission. Mayor Figley stated that tomorrow she will be declaring Kindness Day at Heritage Elementary and added that she will be making a presentation on the City of Woodburn and its UGB expansion success at the Annual Council of Governments Dinner. Councilor Ellsworth announced the Relay -for -Life planning begins on January 30 at 6:30 p.m. at Woodburn Health Center. Councilor Morris stated that he enjoys seeing the overpass lights and would like staff to bring a strategy report on the lighting schedule to City Council. 0:58 EXECUTIVE SESSION Mayor Figley entertained a motion to adjourn into executive session under the authority of ORS 192.660 (2)(h) and ORS 192.660 (2)(f). Carney/Lonergan... move into executive session. The motion passed unanimously. The Council adjourned to executive session at 7:59 p.m. and reconvened at 8:40 p.m. Mayor Figley stated that no action was taken by the Council while in executive session. ADJOURNMENT Morris/Ellsworth... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:40 p.m. Page 2 - Council Meeting Minutes, January 23, 2017 W ATTEST COUNCIL MEETING MINUTES JANUARY 23, 2017 Heather Pierson, City Recorder City of Woodburn, Oregon APPROVED KATHRYN FIGLEY, MAYOR Page 3 - Council Meeting Minutes, January 23, 2017 I EXECUTIVE SESSION COUNCIL MEETING MINUTES JANUARY 23, 2017 DATE CONFERENCE ROOM, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JANUARY 23, 2017 CONVENED The Council met in executive session at 8:03 p.m. with Mayor Figley presiding. ROLL CALL Mayor Figley Present Councilor Schaub Present Councilor Lonergan Present Councilor Carney Present Councilor Morris Present Councilor Veliz Present Councilor Ellsworth Present Mayor Figley reminded Councilors and staff that information discussed in executive session is not to be discussed with the public. Media Present: Julia Comnes, Woodburn Independent Staff Present: City Administrator Derickson, City Attorney Shields, Police Chief Ferraris, Communications Coordinator Horton, City Recorder Pierson The executive session was called: 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). ADJOURNMENT The executive session adjourned at 8:38 p.m. APPROVED ATTEST Heather Pierson, City Recorder City of Woodburn, Oregon KATHRYN FIGLEY, MAYOR Page 1 — Executive Session, Council Meeting Minutes, January 23, 2017 9 �'I �'1��r I Iii ♦ r�} Y 9M& Its BU Pr��i, ,��arrt rr rf aA'!87 February 13, 2017 TO: Honorable Mayor and City Council through City Administrator FROM: Jim Row, Assistant City Administrator SUBJECT: Municipal Judge Appointment RECOMMENDATION: That the City Council appoint Fred Weinhouse as Woodburn Municipal Judge and authorize the Mayor to sign the enclosed employment agreement on behalf of the City. BACKGROUND: In late 2015, following the retirement announcement of Judge Janice Zyryanoff, the City Council appointed three of its members to serve on the Municipal Judge Recruitment Committee. After conducting an initial screening, the committee interviewed three of the six applicants and ultimately appointed Lori Coukoulis to the vacant position. After serving one year as Woodburn's Municipal Judge, Lori Coukoulis submitted her resignation on January 24, 2017. DISCUSSION: Mr. Weinhouse was one of the three candidates that was originally interviewed and the Committee viewed his qualifications and experience favorably. Mr. Weinhouse retired at the end of 2015 after a 30 year career as an Assistant United States Attorney and has served as Wilsonville's Municipal Court Judge for approximately one year. Pursuant to Section 10 of the Woodburn City Charter, the Municipal Judge is one of three positions appointed directly by the City Council. The enclosed employment agreement is for a term of three years. FINANCIAL IMPACT: Expenditures related to the employment of the Municipal Judge are included in the adopted FY 16/17 budget. Agenda Item Review: City Administrator _x_ City Attorney _x Finance _x_ 7 Employment Agreement Fred Weinhouse City of Woodburn Municipal Judge THIS AGREEMENT is made and entered into this day of February 14, 2017 between the City of Woodburn, an Oregon municipal corporation, hereinafter referred to as "City", and Fred Weinhouse, hereinafter referred to as "Weinhouse," both of whom understand and agree as follows: RECITALS Whereas, Pursuant to the Woodburn City Charter, it is the responsibility of the City Council to appoint a Municipal Judge; and Whereas, the City Council desires to employ the services of Weinhouse as Municipal Judge for the City of Woodburn and to provide an inducement for him to remain in such employment; and Whereas, it is the desire of the City Council to provide certain benefits, establish certain conditions of employment, and to set working conditions; and Whereas, Weinhouse understands, agrees and desires to accept the position of Municipal Judge for the City of Woodburn; and Whereas, with the approval of the City Council, the Mayor has authority to execute this Agreement on behalf of the City. Now, therefore, in consideration of the mutual covenants herein contained, the parties agree as follows - 1 . ollows: 1. Duties City hereby agrees to employ Weinhouse as the Municipal Judge, of the City of Woodburn to perform on a continuing basis the functions and duties, which are generally described in Section 22. of the Woodburn City Charter. 2. Hours of Work Weinhouse shall devote sufficient time to complete the duties and responsibilities of his position. Weinhouse shall ensure effective maintenance of the docket and provide adequate opportunities for court appearances by the public. 3. Term 9 A. The term of this Agreement shall be for three (3) years commencing on February 14, 2017 and ending February 13, 2020 ("Services Period"). B. The term of this Agreement may be extended by written consent of the parties for a period mutually acceptable to both parties (Continuing Service Period). If the parties decide to extend this Agreement, negotiations shall commence by August 15, 2019. 4. Termination Weinhouse's employment with the City shall be "at will". As such, nothing in this Agreement shall prevent, limit or otherwise interfere with the right of City for any reason whatsoever with or without cause to terminate the services of Weinhouse at any time as provided herein. 5. Resignation Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Weinhouse to resign at any time from this position with City subject to the provisions of the Agreement. In the event Weinhouse voluntarily resigns this position before the expiration of the aforesaid term of employment, Weinhouse shall give City a minimum of sixty (60) days written notice, unless the parties agree otherwise. 6. Compensation During Services Period, City agrees to pay a wage of ninety-two dollars ($92) per hour, for services rendered pursuant to this agreement. Weinhouse shall be paid for a minimum of two hours for each court session that he presides over. Such wages shall be payable in installments at the same time as the regular employees of City are paid and are subject to normal and/ or authorized deductions. At its discretion, the City Council may periodically conduct a review of Weinhouse's performance, at which time, an increase in salary may be negotiated. 7. Public Employees Retirement System If Weinhouse meets the Oregon Public Employees Retirement System's eligibility requirements, City shall pay both the "employee" and "employer" portions for Employee retirement program under the Oregon Public Employees Retirement System. 8. Sick Leave Weinhouse will earn one (1) hour of sick leave for every 30 hours worked. Sick leave will accrue to a maximum of 80 hours in a calendar year and may only be used in a manner that is consistent with the City policy and the state law. I 9. Judge Pro Tem Pro Tem Judges shall be selected from a list of qualified candidates that have been approved by the City Council. Weinhouse shall arrange for a Pro Tem Judge should he be unable to perform his regular duties due to illness, personal leave, or unanticipated personal needs. 10. Professional Development With prior approval, City shall participate with other agencies where Weinhouse serves as a municipal court judge in reimbursing Weinhouse a proportional share of the costs of attending professional conferences, maintaining required judicial licenses and certifications and maintaining membership to professional associations, in an amount not to exceed $300 per fiscal/calendar year. 11. Liability City agrees to indemnify, hold harmless and defend at its expense Weinhouse from any and all claims, actions, losses, damages, charges, expenses or attorney's fees to which Weinhouse may be subject to arising out of, or resulting from the performance of his official duties hereunder, excepting from criminal acts or gross negligence. Notwithstanding the foregoing, City's obligation under this Section shall not apply to any punitive or exemplary damages that may be awarded by a Court against Weinhouse. 12. Other Terms and Conditions A. City may from time to time fix other terms and conditions relating to Weinhouse performance hereunder, provided such terms and conditions are not inconsistent or in conflict with the provisions of this Agreement. B. Weinhouse shall perform his duties in accordance with all the laws, ordinances, rules, and regulations applicable to his position. C. The entire Agreement between the parties with respect to the subject matter hereunder is contained in this Agreement. Except as herein expressly provided to the contrary, the provisions of this Agreement are for the benefit of the parties solely and not for the benefit of any other person, persons or legal entities. D. Weinhouse acknowledges that he has not been induced to enter into this Agreement by any representation or statements, oral or written, not expressly contained herein or expressly incorporated by reference. City makes no representations, warranties and guarantees contained in this Agreement. 10 13 14. Notice Any written notice hereunder shall become effective as of the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addresses as stated in this Agreement, or at such other address as may hereafter by specified by notice in writing. In lieu of mailing, written notice shall become effective as of the date it is personally delivered to the addressee. Any notice required to be given under the terms and conditions of this Agreement shall be given as follows: City of Woodburn Scott Derickson, City Administrator 270 Montgomery Street Woodburn, OR 97071 Severability Fred Weinhouse Municipal Judge 606 NE Second St McMinnville, OR 97128 If any part, term, or provision of this agreement is held by the courts to be illegal or in conflict with the laws of the State of Oregon, the validity of the remaining portions of the Agreement shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular part, term, or provision. In Witness Whereof, the parties hereto have executed this Agreement on the day and year first written above. KATHRYN FIGLEY MAYOR 11 FRED WEINHOUSE MUNICIPAL JUDGE �'I �'1��r I Iii ♦ r�} Y 9M& Its BU February 13, 2017 TO: Honorable Mayor and Members of the City Council FROM: Scott C. Derickson, City Administrator SUBJECT: Private Office License Agreement with the Woodburn Area Chamber of Commerce RECOMMENDATION: In support of the Chamber of Commerce's 2017 Sustainability Project, it is being recommended that the City Council approve the attached Agreement with the Woodburn Area Chamber of Commerce. The agreement allows the Chamber's Executive Director to utilize an existing vacant office space in City Hall for $200 per -month for a period of up to 24 months. The $200 monthly charge is intended to offset the City's overhead expense associated with the work space. SYNOPSIS: Recently, the incoming 2017 Chamber of Commerce's Board of Directors completed their annual planning and goal setting session to discuss the challenges and opportunities facing the Woodburn Area Chamber of Commerce. Councilors will recall that I am currently in my second term on the Board of Directors in my capacity as City Administrator. During the goal setting, one of the issues discussed was the Chamber's long term effort to grow its overall financial capabilities. Consequently, the Chamber has identified several goals for the upcoming year with the top priority being the Chamber's 2017 Sustainability Project. The Sustainability Project is intended to bolster the Chamber's end -of -the -year cash position while providing greater program consistency over the next 18 to 24 months. It is also focused on improving current business services, fulfilling its tourism partnership with the City and increasing the Chamber membership rolls (another aspect of the financial goal). A critical component of the Chamber's Sustainability Project is reducing current operational expenses. In order to help generate cash savings, the Chamber and Agenda Item Review: City Administrator _x_ City Attorney _x Finance —x- 12 Honorable Mayor and City Council February 13, 2017 Page 2 the City have been discussing a temporary office space arrangement (up to two years) allowing the Chamber's Executive Director to be housed in a currently vacant office space in City Hall. The agreement, should it be approved, will be effective March 1, 2017, and would allow the Chamber of Commerce to cancel its existing agreement, saving approximately $14,000 annually. The City Hall office space would be designated as the Executive Director work area, all other Chamber property (brochures, office furniture, etc.) will be stored offsite at a private location. Under the agreement, the Executive Director may have guests visit the office space, but all visitors must be accompanied by the Executive Director. For the purposes of conducting Chamber Business, there are various public community meeting spaces, including the City Hall conference room that are available. Councilors should also know that the Chamber's Board has reaffirmed its strong commitment to fulfilling the economic development/tourism partnership and the use of Transient Occupancy Tax dollars in promoting tourism in Woodburn. We believe that moving the Chamber Executive Director's work area into City Hall will better facilitate the economic development/tourism partnership already underway. FINANCIAL IMPACT: Per the agreement, the Chamber will pay the City $200 monthly for the space, which is intended to cover basic IT support and telephone service. The City is not charging rent per se but approaching the agreement as a good will collaboration between the City (a Chamber member) and the business community. Councilor's may note that the City is providing a surplus copy machine for the Chamber's use in City Hall, but the paper and toner costs are the responsibility of the Chamber. 13 PRIVATE OFFICE LICENSE AGREEMENT This Private Office License Agreement ("Agreement") is made as of the last date of signatures indicated below ("Effective Date"), between the City of Woodburn, an Oregon municipal corporation (the "City"), and the Woodburn Area Chamber of Commerce, an Oregon domestic nonprofit corporation (the "Chamber") (collectively, the "Parties"). In consideration of the mutual promises contained herein and subject to the terms and conditions hereof, the parties agree as follows: 1. Premises. The City grants a license to the Chamber for the private use of Office Space at Woodburn City Hall, 270 Montgomery Street, Woodburn, Oregon (the "Premises"), more specifically described as follows: 1.1. Office Space. The Office Space will consist of one enclosed, partially - furnished office in the building's north-east corridor area. 1.2. Common Areas. During the term of this Agreement, the Office Space is designated for sole use by the Chamber. The Chamber shall also have the non-exclusive right, in common with The City, to use the following shared facilities or common areas of the Premises per the following conditions: 1.2.1. Parking Area. The Chamber and the Chamber's invitees may utilize the parking facilities on the Premises, so long as use reasonably relates to the Chamber's occupation of the Premises and does not interfere with the day-to-day operations of the City, or inhibit community members from parking at, or accessing the Premises for City business. 1.2.2. City Hall Conference Room, Council Chambers, IS Multipurpose Room, and Training Room. The Chamber may request to use the City Hall Conference Room, Council Chambers, IS Multipurpose Room, and Training Room on the Premises by making a written request to the City Administrator, or his designee acting on behalf of the City. Requests for this use will generally be honored unless a conflict arises where the City requires use of the same space at the same time. In such circumstances, the City agrees to work with the Chamber to find a suitable alternative, such as relocating or rescheduling the Chamber's meeting. 1.2.3. Other. The Chamber may also utilize the restrooms, lunch and break room areas, hallways, ingresses/egresses, landscaped areas, and walkways on the Premises. OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 14 Page 1 of 10 2. Term. The Term of this Agreement commences upon March 1, 2017, and unless earlier terminated, will expire on February 28, 2019. 3. Rent. 3.1. Rental Amount. The Chamber shall pay to the City as rent the sum of two hundred dollars ($200) per month for the entire term of the Agreement. The Chamber shall pay the City all rents in advance, on or before the first day of each calendar month. The Chamber may also coordinate with The City to pay rent in advance on a quarterly basis. 3.2. Rental Payments. The Chamber shall make all rental payments payable to the City of Woodburn at the following address: City of Woodburn, Attn: Woodburn Finance Director, 270 Montgomery Street, Woodburn, Oregon 97071. 4. Conditions of the Chamber's Use of the Premises. 4.1. Permissible Uses. The Chamber shall use the Premises, and specifically the designated Office Space, for the purpose of administrating the Woodburn Area Chamber of Commerce's day-to-day business and operations. This usage will include the general office presence and activity of the Chamber's Executive Director during normal business hours (i.e. Monday - Friday, 8 a.m. - 5 p.m.). No other usage of the Premises will be allowed without first obtaining the written consent of The City. The Chamber shall not use or allow the Premises to be used for any unlawful, disreputable, or hazardous purpose, and shall observe and comply with all laws, rules, and regulations of any municipal, county, state, federal, or other public authority respecting the use of the Premises. 4.2. Common Areas. The Chamber shall have use of common areas within the Premises, as set forth in Section 1.2. The City, through the City Administrator, has exclusive control and management over Common Areas and may, in its discretion, from time to time, (i) make changes to, or modify the designation of what are common areas; or (ii) temporarily close any of the Common Areas, so long as The Chamber's access to the Office Space remains available. 4.3. Security System for the Premises. The Premises have been equipped by the City with a security system that includes a number of video cameras, security -access points, and automatically -timed locking ingresses/egresses. The Office Space for the Chamber will be located on the Premises in an area that has secured access by means of a key card. Therefore, a key card will be issued and provided to the Chamber Executive Director for his use in accessing OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 15 Page 2 of 10 the Office Space. The Chamber agrees that it will make no duplicates of this key card, and the Chamber Executive Director shall maintain the key card in his possession and at no time allow third -parties to utilize the key card for any purpose. Should the key card become lost or stolen, the Chamber agrees to notify the City of such occurrence immediately. The Chamber shall also be responsible for ensuring that any doors it uses are properly locked when leaving the Premises and that proper protocol is followed to help prevent the triggering of any alarm system. 4.4. Guests & Invitees. It is the general understanding of both Parties that the Chamber will make a good faith effort to meet with its clients and patrons off site from the Premises where and when possible. However, the Chamber retains its right to use the Office Space for their work as outlined above, and may from time to time have guests or invitees present on the Premises. In such cases, guests and invitees must be accompanied by the Chamber Executive Director while in safety -secured areas of the Premises (i.e. where a key card is required for access). Additionally, large numbers of guests, or excessive noise or disturbances related to or caused by Chamber guests or invitees is prohibited. 4.5. Office Equipment & Furniture. The Office Space is being provided by the City to the Chamber with minimal furnishings. The Chamber has the right to remove or modify these furnishings by coordinating such efforts with the City and so long as such modifications are reasonably feasible (e.g. storage of undesired furnishings is available). The Chamber may also store items or move - in furnishings of its choosing that would normally be associated with offices. 4.6. Printer / Copier. The Chamber may provide its own printer/copier for use in its Office Space, or at its option, it may request to use a City surplus copier, which will be provided for the Chamber's use in as -is condition. If the Chamber requests to use a City surplus copier, basic set-up in the Office Space may be provided by the City, but copier supplies (e.g. paper, toner, etc.) will need to be purchased and stocked by the Chamber. 4.7. Internet & IT Support. The City shall provide the Chamber with initial IT support services for the purpose of setting -up and connecting the Chamber Executive Director's desktop or laptop computer to the City's public network for internet service. The Chamber shall have access to and use of this network at no additional cost. The Chamber may make additional requests to the City for IT support services (e.g. support for and maintenance of desktop computers, printers, etc.) by doing so in writing to the City's IT Manager. The City reserves the right to render OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 16 Page 3 of 10 such service at its discretion and may prioritize the workload of its personnel to provide such services as it deems appropriate. Any services that are rendered beyond basic support will be charged at a rate of seventy-five dollars ($75) per hour and be based on quarter-hour increments. Any IT service charges will be added as additional rent for the following month. Under this provision, the City will not be providing any hardware to the Chamber and all hardware costs will be the responsibility of the Chamber. 4.8. Phone Service. The City shall provide the Chamber with a phone line and maintenance of a phone system within its Office Space for unlimited local and nationwide long distance calls. 4.9. Mail Collection. The Chamber shall have no mail collection, sorting, or services on the Premises. The City advises that the Chamber utilize a post office box for the receipt of its mail. 4.10. Signs & Advertisement. The Chamber shall not put upon, or permit to be put upon, any part of the Premises, any signs, billboards, or advertisements for the Chamber, without the prior written approval of the City Administrator, acting on behalf of the City. 4.11. Hazardous Materials. Neither the Chamber, nor any of the Chamber's agents, contractors, employees, licensees or invitees shall at any time handle, use, manufacture, store or dispose of in or about the Premises any flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance (collectively "Hazardous Materials") subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the keeping, use or disposition of environmentally hazardous materials, presently in effect or hereafter adopted, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively "Environmental Laws"). The Chamber shall protect, defend, indemnify and hold the City harmless from and against any and all loss, claims, liability or costs (including court costs and attorney's fees) incurred by reason of any actual or asserted failure of the Chamber to fully comply with all applicable Environmental Laws, or the presence, handling, use or disposition in or from the Premises of any Hazardous Materials, or by reason of any actual or asserted failure of the Chamber to keep, observe, or perform any provision of this paragraph. 5. Quiet Enjoyment. The City agrees that the Chamber shall lawfully, peacefully, and quietly hold, occupy, and enjoy the Premises during the term of this Agreement without objection or molestation, except as provided by this Agreement. OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 17 Page 4 of 10 6. Condition of the Premises. The Chamber accepts the Premises and all aspects the Premises in their present condition, AS IS, WHERE IS, including latent defects, without any representations or warranties from The City or any agent or representative of the City, expressed or implied, except for such warranties specifically set forth in this Agreement. The Chamber agrees that it has ascertained the condition of the Premises and its suitability for the Chamber's purposes. 7. Maintenance, Repair, and Improvements. 7.1. Maintenance and Repair. The City shall generally maintain and keep the Premises in good order, including all interior and exterior doors, wall and floor surfaces, wiring, plumbing and drain pipes, and the building's exterior walls, roof, and foundation. During the term of this Agreement, the Chamber shall pay the cost of all repairs for any damage done to the Premises by itself, its guests or invitees, or any agents that it hires. If the City makes repairs on behalf of the Chamber, the cost of the repairs will be added as additional rent for the following month. Upon the end of the license period, the Chamber agrees to leave the Premises clean, in good order and repair and in substantially the same condition as at the time of the commencement of license, excluding wear and tear. 7.1.1. Access. The Chamber shall permit the City to use and maintain pipes, ducts, and conduits in and through the Premises, and to erect the same, provided that the Chamber's usable space is not unreasonably diminished and the Chamber's use and enjoyment of the Premises is not unreasonably interfered with. 7.1.2. Right of Entry and Inspection. The City and the City's representatives and agents shall have the right to enter the Premises, including the Office Space, at any time and without notice in case of an emergency, and otherwise at reasonable times and with reasonable advance notice to the Chamber to examine the Premises and to make alterations, improvements, repairs, or additions as are required, provided the Chamber's use and enjoyment of the Premises is not unreasonably interfered with and that the City shall repair and refinish the affected areas. The City shall provide reasonable written notice of any need to conduct repairs or other work beyond normal maintenance and routine repairs. However, in the event that the Chamber's business is unreasonably interfered with, The Chamber may, at its option, seek to recover through reduction, offset, deduction, or abatement of the pro rata portion of monthly rent paid for the period OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 18 Page 5 of 10 directly associated with the period that the Chamber is unable to conduct its normal business operations. 7.2. Alterations. The Chamber shall make no alteration, additions, or improvements to the Premises without obtaining the prior written approval of the City Administrator, acting on behalf of the City. Any approval of alterations or improvements shall be at the sole discretion of the City. 7.3. Improvements. All building repairs, alterations, additions, improvements, and fixtures (except such business trade fixtures belonging to the Chamber as can be removed without damage to the Premises or building) shall belong to the City and remain on and be surrendered with the Premises as part of the Premises at the expiration of this Agreement. 7.4. Janitorial Services. The City shall furnish and pay for janitorial services and all janitorial supplies required to maintain the Premises in a neat, clean, and sanitary condition for the operation of the Chamber's business. 8. Utilities. The City shall furnish and pay for all electricity, water, sewer, garbage, and other utility services used on the Premises. The City shall make internet and phone services available for the Chamber per Section 4.7 and 4.8. 9. Liens. The Chamber shall not allow any lien of any kind, type or description to be placed or imposed upon the Premises. 10. Indemnification. The Chamber shall release, indemnify, defend, and hold harmless the City and its officers, agents, and employees from and against any and all loss, liability, claims, costs, or damages that may occur or be claimed with respect to any person or property on, in or about the Premises resulting from any act done or omission by or through the Chamber and the Chamber's staff, agents, employees, customers, visitors, or invitees on the Premises by reason of the Chamber's use or occupancy of the Premises. 11. Insurance. The Chamber shall procure and maintain in force, at its expense, during the term of this Agreement, and furnish certificates to the City for the following insurance: 11.1. Commercial General Liability Insurance. The Chamber must secure and maintain a Commercial General Liability policy covering bodily injury and property damage, providing limits of at least $1,000,000 per Occurrence and a General Aggregate of at least $2,000,000. OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 19 Page 6 of 10 11.2. Worker's Compensation and Employers Liability Insurance. The Chamber must secure and maintain a Workers Compensation and Employer Liability policy where required by law. 11.3. Additional Named Insured. The Commercial General Liability coverage must name the "City of Woodburn" as an additional insured. 12. Damage to Property on Premises. The Chamber agrees that all property of every kind and description kept, stored, or placed in or on the Premises will be at the Chamber's sole risk and hazard and that the City shall not be responsible for any loss or damage to any of such property resulting from fire, explosion, water, steam, gas, electricity, or the elements, whether or not originating on the Premises, caused by or from leaks or defects in or breakdown of plumbing, pipes, wiring, heating, or any other facility, equipment, or fixture or any other cause or act and whether or not resulting from the negligence of the City or anyone for whom the City may be responsible. 13. Waiver of Subrogation. _ Neither the City, nor the Chamber shall be liable to the other for loss arising out of damage to or destruction of the Premises, when such loss is caused by any of the perils which are or could be included within or insured against by a standard form of fire insurance with extended coverage, including sprinkler leakage insurance, if any. All such claims for any and all loss, however caused, hereby are waived. Such absence of liability shall exist whether or not the damage or destruction is caused by the negligence of either the City or the Chamber or by any of their respective agents or employees. It is the intention and agreement of the City and the Chamber that the rent reserved by this Agreement has been fixed in contemplation that each party shall look to its respective insurance carriers for reimbursement of any such loss, and further, that the insurance carriers involved will not be entitled to subrogation under any circumstances against any party to this Agreement. Neither the City, nor the Chamber shall have any interest or claim in the other's insurance policy or policies, or the proceeds thereof, unless specifically covered as an also -named insured. 14. Damage by Fire or Casualty. In case the Premises are destroyed or damaged by fire or other casualty, as to become uninhabitable, then in such event, this Agreement shall terminate from the date of such damage or destruction and the Chamber shall immediately surrender such Premises and all interest in the Premises to the City, and the Chamber shall pay rent only to the time of such surrender. 15. Assignment & Subleasing. Assignment of this license or subletting of the Premises is prohibited under this Agreement. Any attempt of the Chamber to OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 20 Page 7 of 10 assign this license or sublet the Premises will automatically terminate this Agreement. 16. Default by the Chamber. Each of the following shall be deemed a default by The Chamber and a breach of this License: (a) Nonpayment of the whole or any portion of the rent, or any other sum or sums of money due to the City from the Chamber under the provisions of this Agreement; (b) Nonperformance by the Chamber of any other covenant or condition contained in this Agreement on the part of the Chamber to be kept and performed; (c) Abandonment of the Premises by the Chamber; or (d) The adjudication of the Chamber as bankrupt, the making by the Chamber of a general assignment for the benefit of creditors, the taking by the Chamber of the benefit of any insolvency act or law, receiver or trustee in bankruptcy. Within thirty (30) days after written notice from the City demanding performance by the Chamber with respect to any such default, the City may immediately terminate this License and reenter upon the Premises and remove all persons therefrom, and in addition or in lieu of such action, the City may, at its option, pursue any other remedy provided by law or in equity for the enforcement of the City's rights under the provisions of this Agreement. 17. Termination. This Agreement terminates as follows: (a) At the expiration of the Term of this Agreement; (b) By the mutual written consent of both parties; (c) Provided either party is not in default under this Agreement beyond the applicable cure period, by either party unilaterally giving at least ninety (90) days' prior written notice to the other party; or (d) Per the provisions of Paragraphs 14, 15, or 16. 18. Surrender at End of Term. At the expiration of the Term of this Agreement or upon earlier termination, the City will have the right to enter and take possession of the licensed Premises, and the Chamber shall deliver the same without process of law. The Chamber shall be liable to the City for any loss or damage, including OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 21 Page 8 of 10 attorney fees and court costs incurred, as a result of the Chamber's failure to comply with this obligation. 19. Relationship of the Parties. Nothing in this Agreement is intended, or is to be deemed to create a partnership or joint venture between the parties. The Chamber shall at no time hold itself out as a subsidiary or affiliate of the City. Further, nothing contained herein shall be deemed or construed by the Parties, nor by any third parties, as creating a relationship between the City and any officers, employees, volunteers, suppliers, contractors, or subcontractors used by the Chamber. 20. Notices. Any notice under this Agreement must be in writing and will be effective when actually delivered in person or three (3) days after being deposited in the U.S. mail, registered or certified, postage prepaid and addressed to the party at the address stated in this Agreement or such other address as either party may designate by written notice to the other. Mailing addresses for the parties are as follows: 20.1. The City. City Administrator, City of Woodburn, 270 Montgomery Street, Woodburn, Oregon 97071. 20.2. The Chamber. Executive Director, Woodburn Area Chamber of Commerce, , Woodburn, Oregon 97071. 21. Oregon Law. This Agreement is governed by and construed in accordance with the laws of the State of Oregon, where the licensed Premises are located, and venue for any legal action will be in the county where the licensed Premises are located. 22. Severability. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement, nor the application of the provisions to other persons, entities or circumstances shall be affected, but instead shall be enforced to the maximum extent permitted by law. 23. No Waiver. No waiver by either party of any breach of any of the covenants or conditions contained in this Agreement to be performed by the other party will be construed as a waiver of any succeeding breach of the same or any other covenant or condition. 24. Modifications and _ Integration. No modification, amendment, discharge or change of this Agreement, except as otherwise provided, shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, amendment, discharge or change is sought. This document OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 22 Page 9 of 10 constitutes the entire, final, and complete agreement of the parties pertaining to the subject matter hereof, and supersedes and replaces all prior or existing written and oral agreements between the parties or their representatives relating to the Premises. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the last date of signature specified below. THE CITY: CITY OF WOODBURN, an Oregon municipal corporation Scott Derickson, City Administrator Date THE CHAMBER: WOODBURN AREA CHAMBER OF COMMERCE, an Oregon domestic nonprofit corporation Stuart Rodgers, Executive Director Date OFFICE LICENSE AGREEMENT - Woodburn Area Chamber of Commerce 23 Page 10 of 10 �'I �'1��r I Iii ♦ r�} Y 9M& Its BU February 13, 2017 TO: Honorable Mayor and City Council through the City Administrator FROM: James C. Ferraris, Chief of Police SUBJECT: Intergovernmental Agreement with Marion County for Mental Health Mobile Crisis Services RECOMMENDATION: That the City Council authorize the City Administrator to sign the enclosed Intergovernmental Agreement (IGA) with Marion County for Mental Health Mobile Crisis Services. BACKGROUND: Marion County has asked the City of Woodburn to execute the Mental Health Mobile Crisis Services Intergovernmental Agreement. Marion County has secured funds through a grant to establish the Mobile Crisis Response Team. Currently, the team is comprised of one Marion County Deputy and one Salem Police Officer. Each law enforcement officer is paired with a Marion County Mental Health professional, who will respond to in -progress patrol calls where there is a mental health component. This will relieve patrol of the time consuming nature of these calls. The goal of team is to make immediate contact with those suffering from mental illness or with those who are in a state of mental crisis. Making immediate contact with those in crisis has a demonstrated benefit in their long term mental health care. DISCUSSION: Under the terms of the agreement, the Woodburn Police Deportment will partner with Marion County on the Mobile Crisis Team. The City of Woodburn, through its Police Department will provide one police officer to the Marion County Mobile Crisis Team. Marion County will provide a Qualified Mental Health Professional to the Mobile Crisis Team, to be paired with the Woodburn Officer. Agenda Item Review: City Administrator _x_ City Attorney _x 24 Finance Honorable Mayor and City Council February 13, 2017 Page 2 FINANCIAL IMPACT: Marion County will reimburse the City of Woodburn up to $190,000.00, over the term of this agreement, for the salary and benefits of an entry-level police officer. The City of Woodburn will provide, under the terms of this agreement, one sworn police officer, work space for the officer and the mental health professional and a data line for access to Marion County data systems at the Woodburn Police Deaprtment. 25 Between 111,11ION COUNTY and CITY OF WOODBURN 1. PARTIES TO AGREEMENT This Agreement between the City of Woodburn, on behalf of the Woodburn Police Department, a Municipal Corporation hereafter called City, and Marion County, a political subdivision of the state of Oregon, hereafter called County, is made pursuant to ORS 190.010 (Cooperative Agreements). 2. PURPOSE/STATEMENT OF WORK The purpose of this Agreement is to establish the terms and conditions under which the City will provide mobile crisis services to County. These services are further described in Section 5. 3. TERM AND TERMINATION 3.1 This Agreement shall be effective for the period upon signatures of all parties through January 31, 2019 unless sooner terminated or extended as provided herein. 3.2 This Agreement including attachments shall be reviewed periodically and any necessary revisions shall be made as required to assure the success of the program. Any modifications in the terms of such amendment shall be in writing. 3.3 This agreement may be terminated by mutual consent o 77177--�j L I T-PUrtJ—VP1Jf � 30 days' notice in writing, and delivered by mail or in person. Any such termination of this agreement shall 3.4 County may terminate this agreement effective upon delivery of written notice to City or at such later date as may be established under any of the following conditions: a. If funding from federal, state, or other sources is not obtained or continued at levels sufficient to allow for the purchase of the indicated quantity of services. This agreement may be modified to accommodate a reduction in funds. b, If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this agreement or are no longer eligible for the funding proposed for payments authorized by this agreement. c. If any license, certificate, or insurance required by law or regulation to be held by City to provide the services required by this agreement is for any reason denied, revoked or not renewed. d. If City fails to provide services called for by this agreement within the time specified herein or any extension thereof. c. If City fails to perform any of the provisions of this agreement or so fails to pursue the work as to endanger the performance of this agreement in accordance with its terms and after written notice from County, fails to correct such failure(s) within ten (10) days or such longer period as the County may authorize. 3.5 Any such termination of this agreement shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination. Page I Rev March 3 20115 26 4. FUNDING t BILLING The total amount paid under this contract shall not exceed $00,000. Payments under this contract shall be made on . cost reimbursement basis.modifications to funding or •.. i.e. purchasing of , specific equipment or team training shall be pre -authorized by Ann -Marie Bandfield. City shall submit monthly invoices of actual costs attention to: Ann -Marie Bandfield, Marion County Health Department, ♦ . copy to Linda Wilson,• • Department, lwilson@co.marion.or.us 5. OBLIGATIONS UNDER THE TE` OF 010100 W",Illmmip,.Ri MA7J4dVJiW11W,1-11%9JUr1 1- — 1111 5.1 UNDER THE TERMS OF THIS AGREEMENT, CITY SHALL: Provide one sworn law criforcement professional as part of the mobile crisis team, work space for Marion County staff at the Woodburn Police department, and a data connection line so that Marion County staff may access Marion- 4 data 5.2 UNDER THE TERMS OF THIS AGREEMENT, COUNTY SHALL: Provide one qualifi mental health professional (QMHP) as part of the mobile crisis team. i 1 COMPLIANCE APPLICABLE jeral, state, and local laws and ordinances aw • • •` •• �:.. . F� . �s .. �, .. .. . i` .• ... i. UIC construed under the lawsof the state of Oregon. 7. NONDISCRIMINATION The parties agree to comply with all applicable requirements of Federal and State civil rights and rehabilitation statutes, rules and regulations in the performance of this agreement. 8. HOLD HARMLESS To the extent pennitted by Article X1, Section 7 of the Oregon Constitution and by the Oregon Tort Claims Act, each party agrees to waive, forgive, and acquit any and all claims it may otherwise have against the other and the officers, employees, and agents of the other, for or resulting from damage or loss, provided that this discharge and waiver shall not apply to claims by one party against any officer, employee, or agent of the other arising from such person's malfeasance in office, willful or wanton neglect of duty, or actions outside the course and scope of his or her official duties. 9.11NSURANCE Each party shall insure or self -insure and be independently responsible for the risk of its own liability for claims within the scope of the Oregon tort claims act (ORS 30.260 TO 30.300). 10. MERGER CLAUS Parties concur and agree that this agreement constitutes the entire agreement between the parties. No waiver, consent, modification or charrge to the ternns o °this agreernen shall bind either lxmy unless in writing and signed by both parties. 'riwre are no rarn¢lei°statidings„ <,ii,reements, or representations, oral or written, not specified herein regarding this agreement. Parties, by the signatures below of their authorized representatives, hereby agree to be bound by its term and conditions. 11. CONFIDENTIALITY The parties expressly agree to comply with i iijid lin s Im, Protected_I;1eillth In onnaa jon Dis losure, Wi0l. A�lor einient, Revised 11/11/2013 incorporated as ADDENDUM NO. 1 and attached herewith. Page 2 27 f.2. FALSE CLAIMS, FRAUD, WASTE AND ABUSE Both parties shall cooperate with and participate in activities to implement and enforce the policies and procedures to prevent, detect and investigate false claims, fraud, waste and abuse relating to Oregon Heall Plan, Medicare or Medicaid funds, Both parties shall cooperate with authorized State of Oregon entities of false claims, fraud, waste and abuse. Both parties shall allow the inspection, evaluation or audit of books, records, documents, files, accounts, and facilities as required to investigate the incident of false claims, fraud, waste or abuse. Both parties are required to verify that their staff and contractors a�re not provided. Both parties are required to check the following databases for excluded individuals and entities Excluded Parties List System (EPLS) vw�vw, Gar1��+ 13. NOTICES Any notice required to be given the City or County under this Agreement shall be sufficient if given, in writing, by first class mail or in person as follows: For City: Woodburn Police Department 1060 Mt. •ff Ave. Woodburn, • ' 97071 • #Villicpn For # Psychiatric Crisis C H 18 Oak Street SE OR 97301 ' • Ann-MarieAnn-Marie %. '.i ' •. Program • •, .� i _ . • #i # • nts wl be effective w # f # '• f.. • ` . : • f i ` • - - - !, is . . • ,. •Y1nTCVMVffTV # . • . In witness whereof, the parties hereto have caused this agreement to be executed on the date set forth below. ROYA !A OX41 OKKIIA4• ' Chair Date Commissioner Date Page 3 Rev March 31, 2015 28 Authorized Sii;nat:111e: � " ....44 Z121— Scott Richards, Interim Administrator Date Authorized Sirlatul cr ,�r..... .°. Dat �N11 1ia11�ua,l6rir:.�1i1°s1�lw Supervisor cct 4Wt Sry Cade :� � �_'ww� ".. Authorized Signature:.„"". ley n Maithe "Division Director Date Authorized Signature: Chief Administrative Officer Date .,,. Reviewed by Signature: Marion County Legal Counsel Date Reviewed by Signature: Marion County Contracts & Procurement o y Contra o Date CITY OF WOODBURN SIGNATURE Authorized Signature ....,_,, Date: Scott Derickson, City Administrator Reviewed by Signature: Date:,,, -,--- Robert Shields, Woodburn City Attorney Page 4 Rev March 31, 2015 29 Ma rion County 0 R E G 0 N Health Department ADDENDUM NO. 1 Guidelines for Protected Health Information Disclosure with Law Enforcement Revised 11/11/2013 Purpose: To clarify situations where disclosure of Protected Health Information (PHI) to Law Enforcement is authorized. To promote necessary and appropriate exchanges of information in accordance with the provisions of the Health Insurance Portability and Accountability Act (HIPAA). These guidelines specifically pertain to PHI disclosure from Marion County Health Dept (MCHD) to law enforcement agencies. Because Oregon law also places certain restrictions on disclosure of protected health information that may be more'stringent than HIPAA, disclosures authorized under HIPAA may be further restricted by state law. In circurnstances where Oregon Devised Statutes establish a higher standard of protection, Marion County will adhere to these more restrictive standards. Authorized disclosure of protected health information will comply with MCHD policy on HIPAA Compliance. Access to and exchange of MCHD clients' protected health information will be restricted to disclosures authorized by the client unless the criteria described below is met. Information may be shared without client consent as allowed un(Jer HIPAA standards and state laws (ref. OILS 179.505 and OILS 192.512 et seq) when at least one of the following is present: • in the event of imminent threat to safety of the individual or others and authorization for release is not practical • In situations where the client's symptoms prevent the individual from providing consent or when client is determined to be unable to give informed consent and the risk of harm to self or others is deemed high (e.g. the individual is highly disorganized and walking out into traffic) In all situations, the intent of the information, sharing must be to protect the safety of the client, MCHD staff, Marion County community members and first responders, including EMS and law enforcement. Information shall be limited to the minimum required to reasonably assure safety concerns are addressed. PHI disclosure may include: • Name, • DOB, fil • Address, • Known history of assaultive or violent behaviors, • Current mental health symptoms that contribute to risk, and • Intervention techniques that have been successful in deescalating the client in the past, Identification of situations where disclosure r�ay,be made will be based on the following: • A review of a forensic psychological evaluation which identifies specific risk factors for violent or assaultive behavior and the risk factors are currently present • History of use of force by law enforcement when the individual was exhibiting a similar clinical picture to their current mental status • Stated threats of assault or violence by the individual that are deemed by a mental health professional as credible and likely to occur • Stated intent by the client to provoke law enforcement into a use of force situation • Known history of violence toward first responders and a reasonable likelihood that contact with first responders will occur due to current symptoms. • A structured risk assessment has been completed by a mental health professional which indicates significant potential of violence and the clinician believes there is a reasonable likelihood of imminence. • Other situations in which a mental health professional, after assessing current mental status and history of violent behavior, determines the threat of violence toward self or others is heightened and likely to occur. The goal of the disclosure shall be to assist law enforcement and other first responders in providing a modified response with the lowest potential for violence or use of force. Tl`iis may include responding to a situation in a more cautious manner, engagement of the Mental Health Response Teai-ri or bringing,'ip a CIT -trained officer to assist in the response. When individuals with a mental illness are taken into custody, mental health staff may release information required to ensure the continuity of treatment. Whenever possible, this information should be shared directly with treating clinicians at the jail, however may be provided to law enforcement personnel when direct contact with a clinician is not feasible. Alcohol and drug diagnosis and treatment information is further protected under CFR 42 part 2 and is may not be disclosed under these guidelines. These guidelines pertain only to mental health history and treatment information. Marion County reserves the right to change or readdress any of the guidelines presented here. 31 Iii ♦4 B V' February 13, 2017 TO: Honorable Mayor and City Council through City Administrator FROM: Eric Liljequist, Interim Public Works Director SUBJECT: Award Professional Services Contract for Electrician Services to Engelman Electric RECOMMENDATION: That the City Council, acting in its capacity as the Local Contract Review Board, authorize the City Administrator to enter into a Professional Services Agreement with Engelman Electric for the Electrician Services. BACKGROUND: ORS 479.540 allows an electrical master permit for "repair, alteration or replacement of existing electrical products", where an "electrical product replacement" includes installing a product in place of another that shall not exceed the capacity or design of the existing electrical system. The electrical master permit program allows City employees with a Limited Maintenance Electrician License (LME) to perform certain electrical work that is overseen by a qualified Electrical Contractor, who is responsible for administering the City's Master Electrician Permit. Having work completed in this manner can be cost effective for the City, as it allows the three qualified City employees the opportunity to perform basic electrical work as part of their normal job functions. However, the City frequently requires electrical work to be completed which falls outside the scope of activities that can be done by employees with an LME license. In these instances, the City utilizes the services of qualified electrical contractors. In order to secure favorable terms and consistent service, the City issued a Request for Proposals (RFP) for electrician services in 2013. After evaluating the proposals at the time, the City entered into a multi-year contract with Boones Ferry Electric. In order to re-evaluate the market and also to allow other contractors the opportunity to perform work for the City, another RFP was issued in late 2016. Agenda Item Review: City Administrator _x_ City Attorney _x_ Finance _x_ 32 Honorable Mayor and City Council February 13, 2017 Page 2 Three qualified proposals were received by the December 28, 2016 deadline and were ranked as follows by the evaluation committee: No: Name 1 Engelman Electric 2 Cox Electric 3 Boones Ferry Electric DISCUSSION: Since 2013, the previous electrical contractor performed work at the water treatment plants, wastewater treatment plant, wastewater collection facilities, and at other City facilities. Work performed by city LME staff included electrical work primarily associated with the water and wastewater facilities. The proposed contract is for a term of three years, with two one-year extensions if agreed to by both parties. The contract award is in conformance with public contracting laws of the State of Oregon as outlined in ORS Chapter 279C and the laws and regulations of the City of Woodburn. Staff is recommending that the contract be awarded. FINANCIAL IMPACT: Historically, the City spends approximately $40,000 annually on work performed by electrical contractors. Funding for this is included in the FY 16/17 adopted budget. The negotiated standard hourly rate for Engelman Electric is $85, which is $5 per hour higher than the rate we were paying under our previous agreement. 33 0 R L G G N February 13, 2017 TO: Honorable Mayor and City Council FROM: Scott C. Derickson, City Administrator SUBJECT: FY 2017-18 Financial Plan RECOMMENDATION: Adopt the attached FY 2017-18 Financial Plan (Budget Policies & Fiscal Strategy and Five -Year Financial Forecast) via a motion. BACKGROUND: In past years, the City has been experiencing a series of difficult financial challenges. During the recession which spanned nearly a decade from 2008 - 2016, the General Fund revenues struggled to keep up with rapidly increasing annual operating costs, and made it difficult to maintain service levels. As a result, the City Council directed that a comprehensive set of financial planning documents be developed and implemented for the purposes of improving the City's financial sustainability. Since the 2011 policy implementation the City has prepared the Financial Plan as a means of managing the City's current year budget and the FY 2017-18 budget development process. In past years the City Council has been commended by the City Auditor, and recognized by the Government Finance Officers Association for the use of comprehensive budget policies and the quality presentation, clarity and transparency of Woodburn's budget documents. 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 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, the needs of the community and available resources. Agenda Item Review: City Administrator _x_ City Attorney _x M Finance Honorable Mayor and City Council February 13, 2017 Page 2 PROPOSED 2017-18 POLICY: Attached is the proposed FY 2017-18 Budget Policies & Fiscal Strategy, which is largely unchanged from the previous year. The proposed FY 2017-18 Financial Plan maintains the establishment of the Council directed General Fund PERS Reserve line item in the amount of $250,000, and the General Fund's Contingency Reserve at 17% of the General Fund's overall operating expenditures in the upcoming budget year. Having identified increasing benefit costs as a threat to General Fund operations, the City Council's adjustment of Contingency Reserve from 10% to 17% appears to have been a sound move. Based on early PERS projections, the City has been anticipating a 20% increase for each of the next three biennium. Unfortunately, the actual FY 2017-18 rate increase for Woodburn will be 23%, translating to an overall budget wide increase of $262,636 with $220,895 being allocated to the General Fund. We are now expecting increases of similar size over the next two upcoming biennium. The increase of contingency reserve is consistent with the Government Finance Officers Association best practices model and is a result of the impacts experienced during the last recession. The 2008 economic downturn taught us that recessions set on more quickly and last longer than in previous decades. I might point out that the City's prior year practices, and prudent use of General Fund resources, placed the City in a good position to achieve these contingency set asides. In addition, with expected changes to federal health care law, there could be sharp increases in premiums in upcoming years. Current year budgeted health care costs are $1,983,000 across all funds. In FY 2017-18, we will budget an increase to $2,099,000. Should these costs create a significant revenue over expense general Fund shortfall in the upcoming year, the adjusted Contingency Reserve will allow the City the ability to minimize impacts to services while making the appropriate budgetary corrections. Councilors will note the Five -Year Financial Forecast has been updated and is current with its projections. I would encourage Councilors to review the forecast and ask any questions you might have. Councilors should also note that I have forwarded the proposed Budget Policies & Fiscal Strategy, including the current financial forecast, to the citizen budget committee for their review as well. 35 Honorable Mayor and City Council February 13, 2017 Page 3 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. rl City of Woodburn FY 2017-18 Financial Plan Budget Policies, Fiscal Strategy & Five Year Forecast • SECTION 1. ANNUAL REVIEW & POLICY A. Fiscal Responsibility. It will be the policy of the City of Woodburn to return the highest level (or sustain the current levels) of service with the least amount of taxpayer investment; and to plan accordingly. B. Balanced Budget. The City's budget shall be balanced. For each fund, ongoing costs are not to exceed ongoing revenues plus available fund balances used in accordance with reserve policies. C. Budget Process. The annual budget process is intended to weigh all competing requests for City resources within expected fiscal constraints. Levels of service will increase or decrease based on the availability of resources. Requests for new programs made outside the annual budget process are discouraged. New initiatives will be funded by reallocating existing City resources to the services with the highest priorities. D. Fiscal Recommendations. Consistent with the administrative responsibilities outlined in the Charter, the City Administrator will make fiscal recommendations to the City Council on all measures necessary to sustain current levels of service and avoid reductions in City programs, including the consideration by the City Council of new revenue sources if this is determined to be in the best interest of the community. E. Budget Policies Updated Annually. The City Council will review and adopt the Fiscal Year Budget Policies on an annual basis. F. Yearly Five -Year Forecast. The City Council will review and approve the Five -Year Forecast on an annual basis. The forecast is an estimate of future revenues and expenses and is intended to serve as an estimate and a guideline for making sound financial decisions in the current fiscal year and budget preparation. The Five -Year Forecast and the annual Budget Policies together will constitute the City's annual Financial Plan. G. Policy Direction. Consistent with their policy making role outlined in the Woodburn City Charter, the City Council is responsible for providing policy direction to determine the City's overall fiscal policy. In response to the fiscal recommendations made by the City Administrator, the City Council shall consider all measures necessary to sustain 37 current levels of service. In addition, the City will avoid reductions in City programs and consideration of new revenue sources if this is determined to be in the best interest of the community. H. Budget. Under the Woodburn City Charter, the City Administrator serves as Woodburn's Budget Officer. The Finance Director assists the City Administrator with preparation and presentation of the annual budget, budget administration and the day-to- day finance operations. The Budget Officer is responsible for the administration of the annual budget and may approve or disapprove the expenditures contained in the adopted budget if deemed in the best financial interest of the City. L 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, reorganizations, 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. • SECTION 2. DISCRETIONARY & DEDICATED RESOURCES A. Reco2nizin2 Financial Limits. Woodburn will make a distinction between two different types of services; 1) those that are funded primarily from City discretionary resources, and; 2) those that are funded primarily from dedicated resources. B. Discretionary Resources. The General Fund is the fund that collects discretionary resources to provide discretionary programs and services as recommended by the Budget Officer and approved as part of the City's cycle. The City will continue to fund these programs primarily from General Fund discretionary resources. These include police, park and recreation, economic development, land use financial services and other programs. C. Dedicated Resources. Dedicated services (e.g., fees, grants, utility revenues, etc.) are traditional City services that are provided primarily with dedicated funds. Dedicated resources are subject to restrictions via state and federal law, grant agreements and contracts, City policy and ordinances. Frequently, these resources will be state or federal programs that the City administers locally, such as public safety programs or transportation grants. The City will fund these programs (i.e. speed and safety belt enforcement, etc.) primarily from dedicated resources. • SECTION 3. GENERAL FUND BUDGET (DISCRETIONARY) A. Annual Budget Goal. The goal shall be to prepare a budget that maintains existing high priority programs supported by the General Fund while at the same time seek savings wherever possible. Funding for lower priority programs will be reduced or eliminated to ensure that expenditures remain in balance with resources. W ri B. General Fund Emphasis. The highest priority shall be to conserve General Fund discretionary resources to fund high priority programs as defined by the City Council and City Administrator. C. Maximize City Council's Discretion. Wherever legally possible, revenues are to be treated as discretionary resources, rather than as dedicated to a particular program or service. The goal is to give the City Council as much flexibility as possible in allocating resources to local priorities. D. New Revenues. In order to sustain current levels of service, avoid reductions in public safety programs or increase services needed to meet community demands, the City Council may consider new discretionary revenues if it is determined to be in the best interest of the community. E. Use of Dedicated Funding Sources. Whenever legally possible, funding responsibility for existing programs or activities should be transferred to appropriate dedicated funding sources, freeing up scarce discretionary resources to fund City Council priorities. F. Cost Efficiency. Staff will prepare fiscally conservative budgets and will seek savings wherever a balance between cost efficiency and the quality of public service can be achieved. G. Materials & Services. Departments are to prepare "base budgets" with a goal of holding General Fund or other discretionary resources for materials and services expenditures to no more than prior year budget levels. H. No General Fund Street Maintenance Support. No discretionary General Fund revenues will be used to support street maintenance activities. General Fund street lighting transfers are exempted from this policy. The current transfer from the General Fund for street lighting will be maintained as long as it is fiscally viable. The transfer will be reviewed as approved each fiscal year as part of the budget process. L Revenue Estimates. Departments should budget for revenues based on the best information available during the budget process. If additional information becomes available during the budget process, it should be provided to the Finance Director's Office. Accuracy in revenue/expenditure estimates is critical. New revenue estimates should be based on the best information available. Subsequent annual estimates should also take into consideration the actual receipts from the previous year. Pursuit of New Departmental Revenues. Departments shall pursue revenue sources to the fullest extent possible for all services as well as total cost identification (including indirect costs) for fee setting purposes, grants or other funding opportunities. Any new revenue sources should be used to offset the cost of existing staff and programs, rather than funding new staff or programs. Fee schedules will be reviewed annually to ensure costs are recovered. Fee schedules will be updated as part of the annual budget process. Q K. Expenditure Reductions. Reductions in revenues may require expenditure reductions from the "base budget" level. If reductions are required, the City Administrator will be guided by the City Council's adopted Resource Reduction Strategy (See Section 17). L. Discretionary Programs. New discretionary programs may be included in the Proposed Budget with the prior approval by the City Administrator and if the new program is deemed a high priority activity. The impact of new or expanded programs on overhead services (information system services, financial services, building / grounds maintenance, human resource services, budget services, etc.) shall be evaluated to determine if overhead services need to be increased due to the addition of new programs. The costs of increases in overhead services attributed to additional programs shall be included in the analysis of the total cost of new programs. Should outside funding for a program expire, the program may be terminated by the City Administrator or the City Council. M. Full Cost Recovery. City staff shall make every effort to assign costs where they occur through the use of interdepartmental/interfund charges and indirect cost percentage assignments. The intent is to clearly define the actual cost of each direct service the City provides internally or externally. The first priority is the recovery of overhead costs from all funds and grant programs. N. Annual Budget Savings. To the extent General Fund supported departments experience savings during the year (due to position vacancies, etc.) that money should not be spent. Instead it should be saved to augment the beginning fund balance for the next fiscal year except as approved by the City Administrator. • SECTION 4. NON -GENERAL FUND / UTILITY BUDGETS (DEDICATED) A. Bottom -Line Emphasis. For activities or programs funded primarily from non -General Fund sources, departments are to prepare "base budgets" with a goal of holding any General Fund contribution to no more than the amount provided in the current fiscal year, subject to the availability of funds. Whenever possible, reductions in General Fund contributions should be achieved. B. No Backfilling. General Fund discretionary dollars will not be used to backfill any loss in water and/or sewer City utility revenue, state -shared or federal revenues, grants or dedicated funding programs (for further information, see the Resource Reduction Strategy). C. Revenue Estimates. Departments should budget for revenues based on the best information available at the time the budgets are prepared. If additional information becomes available during the budget process, it shall be provided to the Finance Department. New revenues should be estimated based on available information the first year. Subsequent annual estimates should also take into consideration actual receipts from the previous year. il D. Overhead Cost Allocation Charges. All non -General Fund departments should budget the amount allocated to that department. E. Cost Efficiency. As with the General Fund, staff responsible for non -General Fund budgets will prepare fiscally conservative budgets and will seek savings wherever a balance between cost efficiency and the quality of public service can be achieved. F. Utility Revenue Allocations. It is the policy of the City of Woodburn that revenue generated by City owned utilities will be split between capital funds and operating expenses in a manner consistent with Woodburn's Capital improvement plans and operating requirements. The allocation, or split, of these revenues will be approved annually as part of the budget processes. G. Utility Rates. The City will maintain utility rates at a level that ensures that all debt service, operating and capital costs are adequately recovered. Capital costs identified in approved capital improvement plan will be used as the basis for forming the capital costs recovery portion of utility rates. H. System Development Charges. As permissible under state law, the City will pursue the recovery of infrastructure -related development cost relating to water, sewer, street, storm and parks. These costs will be delineated via a defensible methodology, which will be revised from time to time to ensure accuracy. L Street SDC Reserve. The Street SDC Fund will not be depleted below the estimated balance outstanding on the City's contribution to the Woodburn I-5 Interchange Project. The Street SDC Fund resources will be focused on the Woodburn I-5 Interchange Project until the liability is settled with the Oregon Department of Transportation. • SECTION 5. FUND RESERVES & CONTINGENCIES A. PERS Reserve Established. Due to expected PERS rates increases over the next three legislative biennia the City Council is hereby establishing a PERS General Fund Reserve (PERS Reserve). The PERS Reserve is intended to help manage General Fund service impacts associated with any future PERS rate increases. It is the goal of the City to hold at least $250,000 in the General Fund PERS Reserve pending future rate increases. B. General Fund Contingencies. Not including the PERS General Fund Reserve, and consistent with Government Finance Officers Association (GFOA) best practices, at least 17% of the General Fund's operating appropriation shall be placed into the operating contingency to meet cash flow needs. In addition, it is the goal of the City to preserve contingences to the greatest extent possible for the purposes of rolling contingency balance into the following year's General Fund's Beginning Fund Balance. The City re- establishes the Shortfall Management Reserve. 41 C. General Fund Contin2ency Proportionality. If possible, when contingency is expended overall reductions will be made to the General Fund in a manner to preserve a 17% General Fund contingency. D. Water & Sewer Fund Contingencies. The Water and Sewer Funds will maintain annual contingencies of not less than 5%. • SECTION 6. GRANT APPLICATIONS (ALL FUNDS) A. Approval to Pursue. The City Administrator's approval is necessary before any employee pursues lobbying efforts on matters having budget implications, and before grant applications are submitted to the granting agency. Department Heads should advise the City Administrator before official positions are taken on matters that might have budget implications. B. General Fund Matching Funds. Upon approval by the City Administrator, matching fund requirements will be presented to the City Council for final approval. • SECTION 7. NEW POSITIONS, PROGRAMS AND OVERTIME (ALL FUNDS) A. Base Budget & New Positions. Departments are to prepare "base budgets" with no new regular positions unless specifically authorized by the City Administrator in advance of budget preparations. Reorganizations of departments or programs resulting in changes in staffing or positions may be considered if the change is cost neutral or a cost savings from the current costs. No position compensation or increase will be provided beyond amounts budgeted for the position. B. Considerations of New Positions/Pro2rams. Unless otherwise authorized by the City Administrator, consideration of new programs and positions will occur only if the cost of the position or program is offset by non -General Fund sources legally tied to the new position or if the cost of the position is offset by new external revenues, reductions within existing funds and/or the position is required to generate those revenues. Cost estimates for new positions will include office facility space, equipment, rent, utilities, supplies, related increases in overhead services, etc. Additional personnel or programs shall be requested only after service needs have been thoroughly documented or after it is substantiated that the new employees will result in increased revenue or enhanced operating efficiencies. C. Annual Overtime Budgets. Departments will anticipate their annual overtime costs to be included the proposed budget. Once the budget is adopted, overtime costs are to be managed within adopted levels. No overtime costs can exceed budgeted levels without first obtaining the authorization of the City Administrator. 42 • SECTION 8. MID -YEAR BUDGET REDUCTIONS A. Revised Revenue or Expense Estimates. If additional information concerning revenue reductions or significant expense increases becomes available after the start of the fiscal year, it may be necessary to make budget adjustments. These adjustments will be made in accordance with the City Council's adopted Resource Reduction Strategy. • SECTION 9. MID -YEAR REQUESTS, GENERAL FUND CONTINGENCY (ALL FUNDS) A. Non -Emergency Requests. In those cases where a department is required to absorb an unanticipated cost beyond its control of a non -emergency nature, departmental resources must first be exhausted prior to a transfer from General Fund contingencies. Upon conducting a final financial review of departmental budgets towards the end of the year, a transfer from contingency will be made to cover unanticipated costs that could not be absorbed throughout the year. B. Emergency Requests. Emergency requests during the fiscal year will be submitted to the City Administrator for recommendation and forwarded to the City Council for consideration. • SECTION 10. COMPENSATION & BENEFITS (ALL FUNDS) A. Wage Policy. Historically, the biggest factors forcing budget growth are increases in employee compensation and increased benefit costs. The City will have a compensation and benefit program that: 1) reflects the value of work performed by our employees, 2) compares favorably with the compensation and benefits paid for similar work in both the private and public sectors, and 3); considers the community's ability to pay. Both our employees and the public must understand the mutual respect that such a policy warrants. B. Health Care & PERS Costs. Continue the City's policy on wages and salary increases which evaluates the increased cost of health insurance and PERS contributions as part of the total compensation package. It is the goal of the City to reduce annual escalations of health insurance, and other benefit costs by getting the employees to bear an equitable portion of the annual premium increases and/or selecting lower cost benefit programs. C. Cost of Living Adiustments (COLA). The City Administrator will make a recommendation either to include, or not include, a COLA for non -represented employees in the Proposed Budget. COLAs included in the Proposed Budget are considered and approved by the Budget Committee and City Council as part of the budget process. COLAs or other compensation provided for in collective bargaining agreements will be provided for in the annual Proposed Budget. 7 43 D. Step Adiustments. Budgeted personnel services expenditures will include an amount to account for annual step adjustments for all employees who are not currently at the top of their range. Annual employee step adjustments will not exceed 5% without the expressed permission of the City Administrator. • SECTION 11. BUDGET CONTROLS A. Legal Compliance. The City Administrator and Finance Director will continue to review and control departmental budgets at the appropriation level. B. Personnel Services & Benefits. With the exception of overtime pay and temporary help accounts, which shall be developed by Department Heads with the advice of the Finance Director and the approval of the City Administrator, personnel services and benefits cost calculations will be provided by the City Administrator and the Finance Director and will be used as provided. The City Administrator and the Finance Director will also provide estimates for insurance and internal services costs. These amounts will not be altered by Department Heads. C. Wates & Benefit Control. Positions not entitled to receive benefits will be managed in a manner that keeps them below mandatory benefit thresholds (such as PERS, health insurance, etc.). Positions will only be eligible for benefits if approved by the City Administrator and/or designated in Job Descriptions. All benefit costs must be anticipated and included in the annual Budget. D. One -Time Revenues. One-time revenues will be used only for one-time expenses. • SECTION 12. UNAPPROPRIATED ENDING FUND BALANCES (ALL FUNDS) A. Limit Unappropriated Ending Fund Balances. To provide the most budget flexibility during the year, limit the use of unappropriated ending fund balances to circumstances where they are required by law. Rather than use unappropriated fund balances, the goal should be to place any monies not needed for current expenditures in the relevant funds' operating contingencies. • SECTION 13. CAPITAL IMPROVEMENT GUIDELINES A. Capital Improvement Program. A 6 -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 6 -year planning period. The Capital Improvement Program will be consistent with the City's adopted Capital Improvement Master Plans. Funding availability will determine the rate at which Capital Improvement program projects are initiated or completed. B. Exceptions. The City will fund dedicated programs and services with dedicated funding sources. Exceptions may be made, on a case-by-case basis, by the Budget Committee, City Council or by the City Administrator if appropriate. One criterion will be whether the City would incur more costs elsewhere as a result of the reduction. C. Capital Planning Consideration. Recognizing that it does not necessarily make sense to fund current operations at the expense of long-term capital or planning programs, every effort will be made to continue capital and planning programs geared to the City's long- term needs • SECTION 14. DEBT ISSUANCE (ALL FUNDS) A. Debt Issuance. The City will only issue debt in accordance with adopted Master Debt Resolutions for Sewer and Water. General Obligation debt will only be issued in compliance with state statutes. Debt will only be issued (for all fund types) when a dedicated resource is available to meet the required debt service and reserve. No debt will be issued without the approval of the City Administrator and authorization of the City Council. B. Interfund Transfers. Interfund transfers are allowed if the City Council determines the transfer to be in the best interest of the City. All interfund transfers will be managed consistent with state budget law. • SECTION 15. DEBT REFINANCING/REFUNDING A. Debt Refinancing/Refunding. From time to time, the City Council and/or the City Administrator may direct the Finance Director to determine the feasibility of refinancing/ refunding existing debt. Refinancing may include restructuring to meet unanticipated revenue expectations, achieve cost savings, mitigate irregular debt service payments, release reserve funds, or remove unduly restrictive bond covenants. B. Responsibility. The Finance Director, with the assistance of consultants as needed, shall have the sole responsibility for conducting the analysis of outstanding bond debt for refinancing/refunding opportunities that may be presented by underwriting and/or financial advisory firms and making a recommendation to the City Administrator. C. Term of Refinancing/Refunding Issues. The City may refund bonds within the term of the originally issued debt. However, the City may consider maturity extension, when necessary to achieve a desired outcome, provided that such extension is legally permissible. The City may also consider shortening the term of the originally issued debt to realize greater savings. The remaining useful life of the financed facility and the concept of inter -generational equity should guide this decision. D. Analysis and Report. The City will evaluate each refinancing/refunding candidate on a case-by-case basis. When analyzing possible refinancing/refunding opportunities: the City establishes a guideline net present value savings threshold goal of three percent (3%) of the refinanced/refunded bond principal amount. The net present value savings will be I 45 net of all related issuance costs. In addition, the Finance Director will make a full report on the potential saving generated and any financial risk associated with refinancing/refunding the debt. • SECTION 16. ANNUAL FINANCIAL AUDITS A. Annual Audit Required. 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. B. Audit Standards. 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 make any necessary recommendation for improvement. C. Finance Director and City Administrator Oversight. It will be the responsibility of the Finance Director and the City Administrator to oversee the annual audit process. D. Preparation of Financial Statements. When feasible, City staff will prepare and provide annual financial statements to the auditor's satisfaction. If staffing levels or other barriers exist to internal preparations of financial statements, the City Administrator may authorize the auditor's preparation of financial statements for the purposes of completing the annual audit on time. E. Audit Deadlines & Extensions. 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. 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 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 reason for the extension request and estimated time line for completing, presenting and filing the audit. 10 W. F. Audit Presentation to Council. The annual audit findings will be presented to the Woodburn City Council during a regularly scheduled City Council meeting by a representative of the audit firm. All audits presented to the City Council must be complete and signed by a representative of the audit firm. G. Budget Committee Review. A copy of the annual financial report will be provided to the Woodburn Budget Committee for their review. • SECTION 17. PROGRAMS A. Discretionary Programs. To the extent additional discretionary resources are available, high priority services areas will be slated for growth in discretionary support. Lower priority service areas will receive constant or decreasing discretionary support. Based on the direction of the City Council, discretionary programs are identified, and prioritized, 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 18. RESOURCE REDUCTION STRATEGY (ALL FUNDS) A. Goal & Reduction Approach. When faced with a potential reduction in resources, the City's goal is to continue to provide services in a professional, effective and efficient manner. Consequently, to the extent possible, across-the-board reductions in expenditures will be avoided. 11 47 B. Case -by -Case Consideration. Reductions will be made on a case-by-case basis, focusing on each individual program or service. If possible, reduction will be made proportional to the programs and services identified by the City Council. C. Moderation When Possible. If, as a result of loss of a significant amount of discretionary resources, expenditure reductions become necessary, those reductions will be made in moderate case-by-case reductions in discretionary supported programs and services. These reductions will focus first on programs funded by dedicated resources and then services funded by discretionary resources. D. Discretionary Contributions. If further reductions are required, any discretionary funding that supplements or supports services mostly supported with dedicated resources will be reduced or eliminated. This may apply to programs or activities expanded or started with discretionary resources within the last few years. Exceptions may be made on a case-by-case basis by the City Council. E. Furlough Days. If personnel budget/salary saving are required, the City will consider a reduced work week or furlough days prior to laying off staff. F. Consideration List. Discretionary funding for programs funded by discretionary resources will be reduced or eliminated as needed. Legal restrictions or the City's ability to maintain minimal service levels will be considered. The City Administrator can determine the appropriate level of consideration at his/her sole discretion when making mid -year reductions or comprising the annual budget proposal. Based on the direction of the City Council, the order of City service areas to be considered for reductions 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/Tree Maintenance ✓ Recreation Programming ✓ Aquatic Center ✓ Library ✓ General Administration ✓ Code Enforcement ✓ Economic Development ✓ Land Use Planning ✓ Legal Services ✓ Financial Services ✓ Police Support Services ✓ Police Patrol & Public Safety 12 G. Indirect Costs. The City's overhead programs will not be prioritized, but will be sized to the need and size of the overall organization. Generally, wherever possible, the City's goal is to make fee -supported programs self-sufficient. This includes recovering those programs' appropriate share of the City's overhead costs. If reductions occur, then indirect costs will be sized to the needs and size of the rest of the organization. H. Dedicated Funding for Programs. Where legally possible, the City will consider using dedicated resources to fund high priority programs related to the purpose for which the dedicated funds are received. 13 Five -Year Forecast Fiscal Years 2017/18 - 2021/2022 Photo Source: Google Images Finance Department February 13, 2017 r� (Flage I in Lein doima Illy I eft 1:311a in k) 51 uuuu� ill uuuV Wooduuo iI iIV IFIL in,"Forecast 201117/18,11,11,111, 1iuuuuu 2021/22 Table of Contents Introduction............................................................................................................................................................................ 1 Cityof Woodburn Background............................................................................................................................................ 1 Purposeof the Forecast...................................................................................................................................................... 1 ForecastMethodology........................................................................................................................................................ 2 ExecutiveSummary................................................................................................................................................................. 2 Overview............................................................................................................................................................................. 2 Economic and Demographic Assumptions......................................................................................................................... 3 Issuesin the Coming Year................................................................................................................................................... 3 IssuesBeyond One Year...................................................................................................................................................... 3 GeneralFund...........................................................................................................................................................................5 BuildingInspection Fund.........................................................................................................................................................7 TransitFund............................................................................................................................................................................ 8 StreetFund............................................................................................................................................................................ 10 WaterFund...........................................................................................................................................................................11 SewerFund...........................................................................................................................................................................12 RemainingFunds...................................................................................................................................................................14 Major Assumptions — Revenues............................................................................................................................................ 15 Major Assumptions — Expenditures...................................................................................................................................... 16 Glossary.................................................................................................................................................................................17 52 IIID'° IIID VIII o D City of Wood bux111 Badkgrowid The City of Woodburn is located within Marion County in the populous northern Willamette Valley, approximately halfway between the larger urban areas of Portland and Salem. The population of the region within a 30 -mile drive of Woodburn is 2.1 million, according to the American Community Survey. The economy of the immediate area around Woodburn has historically been centered on agricultural and forest products, with the City serving as the manufacturing and services hub for these two sectors. Food processing and agricultural services continue to be very important parts of the local economy. Another important factor in the local economy. As nearby urban populations have grown, Woodburn has adapted by attracting a variety of new businesses ranging from metal fabricating, warehousing, regional retail and a wide range of service -providing businesses. Woodburn has changed significantly in population since it was first incorporated in 1889. The City originally began as a small farming and manufacturing community. Beginning in the 1960s Woodburn became a suburb of Salem and Portland with its proximity to 1-5. As of the census of 2000, 20,100 people resided in Woodburn. As of July 1 2016, its population had risen to 24,795 — a net rise of 23.4% over 2000 — ranking it the 21" most -populated city in Oregon.' The US Census' 2015 data shows Woodburn per capita income was $17,273 (compared to $27,684 for the state), and the median income for a household was $45,110, or 12% less than the state median household income of $51,243.2 The population of Woodburn, as of July 2016, was 24,795. Marion County's adopted population projections indicate Woodburn will grow to 37,216 by 2030. UIIIr"posO of Xlie FOIIIrOCUS The Five -Year Financial Forecast takes a forward look at the City's most significant fund revenues and expenditures with the purpose of identifying financial trends, shortfalls and issues so the City can proactively address them. For the purposes of the financial outlook, we strive to look at operating revenues (those revenue sources not subsidized by beginning fund balance) versus operating expenses. Future results are projected based on the City's current service levels, policies and unavoidable future impacts. Existing fund balances will be considered available for one-time expenditures only, whenever possible. The financial forecast serves as a basis of the City's financial plan for its primary operational funds, which influence changes to the City's budget policy. The intent of this financial forecast is to project each operating fund's financial position under certain assumptions. The forecast then sets the stage for the budget process, aiding both the City Administrator and City Council in establishing priorities and allocating resources appropriately. Responsible financial stewardship is imperative to provide for the current and future needs of the community. Forecasting is one of the most powerful tools the City has available to help make informed financial decisions that will ensure the City's future vitality and economic stability. ' Population Source: Portland State University's Certified Annual Population Estimates 2016 2 Income Source: United States Census Bureau – Quick Facts for Oregon and Woodburn City of Woodburn Five -Year Forecast 2017-18 to 2021-22 1 53 Farecast I IIIIII The City of Woodburn's approach to forecasting is to apply a conservative philosophy that neither overstates revenues nor understates expenditures. Economic forecasting is not an exact science. Rather, it is dependent upon the best professional judgment of the forecaster. To enhance the accuracy of projections, the City identifies factors that contribute to the changes in revenues and expenditures, such as development, inflation, interest rates and known future events that will affect operations. Forecasting of operating costs embraces the concept of status quo. This concept assumes that the current level of service will continue for the next five years with cost changes based on inflationary increases. This provides a baseline economic estimate from which reductions or increases in service levels can be determined. To the extent certain reductions or additions are anticipated, they are noted within the fund section of this report. Exceptions to the status quo assumption are noted at the beginning of each fund. Because capital improvements are based on available resources, a long-term forecast is not useful for budgeting purposes. Master plans governing our long-term investments in Water, Sewer, Transportation, Storm Water, and Parks have been established. Projects are prioritized based on the master plans, but are scheduled based on available resources which, due to variations in growth rates, are not readily predicted. To the extent possible, operations are funded first and remaining resources are allocated to fund capital improvements. This frequently means that improvements are delayed to achieve the matching funding source. Improvements which are too expensive to be paid from net resources are assumed to be funded via bonded debt, although in practice, this is a rare occurrence. For these reasons, capital construction funds and the related special revenue funds, are not included in this forecast. Utilizing general ledger records and reports, audited financial statements, water and sewer master plans/rate studies and published City budgets, each of the funds listed below were examined to identify patterns in revenues, expenditures and cash balances that may indicate financial instability or threats to sustainability of current operations. Exec ut VIII °°°° Surnmary This report is a combined effort of all City staff. Each department provided insight into future year operating revenues and costs. The goal in assembling this report is to reveal trends, highlight financial issues and provide suggestions and options. We look forward to feedback and input from the City Council and other interested parties on these issues. Because the fund section provides detailed information, the executive summary will focus on the most significant issues facing the City. Overview The forecast model predicts that most operating funds will have sufficient resources to meet expenses over the five-year period. A few of the fund graphs depict a declining undesignated balance of resources. While this may seem alarming, it is just an indicator. In reality, the City would not submit a proposed budget where costs exceed all available resources. The value of the forecast is that it allows us to predict where problems might occur and provides the City adequate time to take corrective action before the situation becomes a crisis. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 a Ecoinainic airaind Deiinogira1phic Ass u iirn P ° iii iir Oregon as a whole is expected to grow with a modest annual population growth rate of 1.1% to 1.25% between 2016 and 2020. Oregon and the City of Woodburn's economic condition heavily influence the population growth. Woodburn's economy determines the ability to retain local workforce as well as attract job seekers. These factors will weigh heavily upon the City's ability to continue to provide a high level service to the public. �IIssues iiiri t 6 Cainhing Yeair • Continued focus on stabilizing General Fund finances • The Urban Growth Boundary (UGB) expansion approval creates uncertainty about future development and future demands on water, sewers, streets and building activities • Expansion of the Economic Development program �IIssues Beyand Oine Yeair Public Employees Retirement System (PERS) The City participates in the Oregon PERS State and Local Government Rate Pool, which two years ago projected rate increases of 20% beginning July 1, 2017. The updated rates received in November 2016 show an average increase of 23% for the next two years. Additionally, another significant average rate increase of 25% is projected for the biennium beginning in July 1, 2019. Unfortunately this projection is not the worst case scenario as significant drops in the financial market will affect interest earnings, causing higher PERS rates than currently projected. Health Insurance Though the City has implemented a high -deductible health plan and attempted to control health insurance costs, the growth rates on some policies continue to exceed 15%. An assumption of 10% growth in insurance rates has been used here. There is a great deal of uncertainty in health care premiums and the implications of the Affordable Care Act. General Fund New demands for services will need either new resources or program cuts in other areas. In FY 2016-17 the Police Department budget represents approximately 83% of the anticipated property tax revenue and will continue to be a priority in budgeting. The challenge for the City will be to continue to provide a high level of service with only modest increases in revenues. Demand for park and recreation services are expected to continue to increase due to increases in population and put additional strain on the limited resources of the General Fund. In addition, the facilities funded by the General Fund, including City Hall, the library and the aquatics center still have a significant amount of deferred maintenance. The City levies a franchise fee on private utilities for the use of the City right-of-way. For the first time in FY 2013-14, the City levied this franchise fee on its own utilities and the 5% general right-of-way charge was approved for a five-year period, and City Council voted in 2016 to continue the charge without an end date. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 3 55 IA/ntvr The operational fund is in relatively good shape, but that is largely at the expense of setting aside rate revenue for future capital expansion. Demand for new services has been low, but may see significant increase in the next five years. UGB expansion is uncertain and what capacity improvements are needed is unknown. Transit Historically, the General Fund provided $151,000 annually to the Transit Fund; that support has declined to $116,000, resulting in reductions in service hours and routes in recent years. The transit operation is aggressively seeking grants to fund operations and maintain and/or increase current levels of service, but a restoration of some of the General Fund subsidy may be necessary to sustain the program in the long term. Recent capital investments in vehicles and shelters were largely grant funded. Sewer Major expansion at the Wastewater Treatment Plant (WWTP) has been on hold waiting for a decision from DEQ regarding the water quality limits for temperature. This brings uncertainty for the Sewer Fund because project costs will be more than estimated due to the multi-year delay. See the Sewer Fund for further detail. Also, the extent of needed UGB expansion capacity improvements is unknown. Streets Due to economic conditions, Street SDC revenues have remained flat and are expected to remain flat. The City paid the $4.2 million remaining balance to ODOT for the 1-5 interchange project. Several street projects were delayed to maintain an adequate Street SDC balance. Now that this project is resolved existing projects will be prioritized. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 4 2 General Fund Var4nces fro n Status Quow nlpboi n Addition of a full-time planner position to manage anticipated development due to the Urban Growth Boundary expansion. 1 wi n if .lu of n • PERS rate increase (25% impact to the General Fund, 23% impact citywide) as of July 1, 2017 • General Fund Right -of -Way charge on Water and Sewer continues Property taxes account for two-thirds (66%) of the annual revenues in the General Fund. Property tax revenues are no longer declining, but uncertainty surrounding the appeal award of the City's largest taxpayer remains. Though residential values are increasing, the City has industrial and other property types that continue to lag behind. Property taxes will increase if there are significant new developments within City limits, but it takes several years to see the income increase. In the first few years of this forecast the City does not expect to receive the 3% increase allowed by statute. Franchise fees, the second largest revenue in this fund, are based on the gross revenues collected in Woodburn of utilities that use the City's right-of-way. Private utilities doing business in the City of Woodburn include Portland General Electric, Northwest Natural Gas, Qwest, Republic Services, Wave Broadband, Woodburn Ambulance and others. The only way this source of revenue will increase is if the private utilities revenues derived from Woodburn residents also increase. Intergovernmental is the third largest type of revenue at 5%. This type includes state and federal grants, and state cigarette, liquor and revenue sharing. Revenues are projected to increase at a modest 2.5% rate beyond year one of the forecast period. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 57 18,000,000 General Fund 16,000,000 14,000,000 .... .... .... .... .... .... .... ����� .... � 9 .... hyyy� 12,000,000 1 11 rI�I li 10,000,000 ... 111111 ....�II ....� ...II� I114� ....II��� I���r I ilii ... r � I IIIIIIIIIIIIIIIIIIITransfers I I � rll II ©Capital Outlay 8,000,000 I I m Ili 11 �" Ili p 111 r r1 1' Mat &Svcs F III1 'Personnel Y I61: �wogm�,p^,Ilm�i ����1��,����1�„��� �1����,p��l����„1"IIS 1 Y�;Y�;;Iki;;'I;;�Ik� 11�;Iki;;Y;;�Iki;;Y�� IFYI!;;Iki;;Y;;�lkl �r������d���������d 1..........1...... 6,000,000 ail' �P� .11 1. ."' 1 1 .v 1... 1 r V 1 ! �1�1I Ilm III II FII II II I. 4,000,000 Y�I I I gi 1 I1 .L.I I I�A'I� ..„ YI'";I�,111i; Il,lllil'Illlil'I, FW!;IIIiW!;Illi I I i6„I„„� �: 2,000000 I�III "'1^1 �ll II ,IIIIIY� �IIII�Y .IIIiIIRI!� .FIII"i r11 iR6 IIII r,lll �IIIIIII I �I�������I������ II II �r������a��������d ....!� 1� 1 .r11 ..M11 r1 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Actual Actual Actual Actual Budget Forecast Forecast Forecast Forecast Forecast Property taxes account for two-thirds (66%) of the annual revenues in the General Fund. Property tax revenues are no longer declining, but uncertainty surrounding the appeal award of the City's largest taxpayer remains. Though residential values are increasing, the City has industrial and other property types that continue to lag behind. Property taxes will increase if there are significant new developments within City limits, but it takes several years to see the income increase. In the first few years of this forecast the City does not expect to receive the 3% increase allowed by statute. Franchise fees, the second largest revenue in this fund, are based on the gross revenues collected in Woodburn of utilities that use the City's right-of-way. Private utilities doing business in the City of Woodburn include Portland General Electric, Northwest Natural Gas, Qwest, Republic Services, Wave Broadband, Woodburn Ambulance and others. The only way this source of revenue will increase is if the private utilities revenues derived from Woodburn residents also increase. Intergovernmental is the third largest type of revenue at 5%. This type includes state and federal grants, and state cigarette, liquor and revenue sharing. Revenues are projected to increase at a modest 2.5% rate beyond year one of the forecast period. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 57 The City has a number of deferred maintenance projects, which continue to be postponed. In fiscal year 2014-15, budget authority was approved for funding for the most critical needs, such as city hall roof and HVAC replacement, a significant mower replacement and other facilities -related needs. However, due to necessary expenditure reductions, the City Hall Roof and HVAC replacement project were reduced to critical repairs only. nm tent4i hrnpacts &nd Issues There are potential future demands that could increase costs in this fund; however, there are no available resources for these expansions. Potential future demands are explained below. Parks & Facilities Maintenance As demand continues to grow for the public's use of City parks, additional burdens are being placed on the City's General Fund to provide enhanced services. Additional staff hours are required for cleanup and maintenance of these parks. These potential cost increases are not included in the forecasts. Facilities maintenance continues to be a challenge with aging buildings requiring increasingly expensive repairs and maintenance. Police Staffing While population continues to increase, there has not been a proportional increase in development resulting in increased tax revenues. This phenomenon places an increased burden on the demand for police services without commensurate revenue increases. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 NJ Building Inspection Fug Var4nces fro n Status Quow nlpboi n • Permit revenues have shown significant increase in FY 2015/16 • Additional position approved in FY 2014/15 Supplemental Budget, currently unfilled 1,600,000 Building Inspection Fund 1400 000................................................................................................................................................................................................................................................................................................................................................................ ................. 1,200,000 INN, N, 'I Mat & Svcs 1,000,000 .. ..Nw'la N ..NN.. 800 000 .. .... .... .... .... "� w Ia`��" .... ww"�"� wwu44N .... ,... °,:Personnel ��1�� 600,000 w4 ° .......................u4°��4.......................N'°'........... " w4w 4; " mw W a Revenue 400,000 a �iw� 200,000 w Fund ;wmmw Balance 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Actual Actual Actual Actual Budget Forecast Forecast Forecast Forecast Forecast Revenues are based on permits issued for new development and redevelopment that historically ebbs and flows. Permits are collected prior to the work being done, therefore cash balances exist to pay for services to be performed in the future. Future revenues are based on estimates of when specific projects might begin. Costs reflect cuts and reductions already in place and estimated inflationary influences. nm tent4i hrnpacts &nd Issues Delays in developers submitting plans or starting construction will impact the bottom line. The City will closely monitor the actual revenues against the forecast and will take corrective action if necessary. A return to a normal level of development necessitated a return to historic staffing levels. Revenues forthe current year continue to be ahead of budget year to date, but it is uncertain whether the pattern will continue throughout the year. The revenue projection was maintained at a conservative level. The Building Fund, of course, will be significantly impacted if the UGB is not expanded, as the City is running out of residential and industrial lots. There are quite a few commercial building opportunities that could sustain revenues for several years though. Approximately 50% of the Woodburn School District bond allows for significant construction work to all the school buildings for repairs, additions and two new schools. The school bond passing will have a big impact on the Building Department workload and revenue over the next five years, but it may also require additional staff and vehicles. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 7 M Transit Fug Var4nces fro n Status Quow nlpboi n • None Key Asswnnpbo�ns • Ability to continue to obtain grant funding • General Fund contribution remains stable for forecast period • Fares remain consistent for forecast period The City's transit system provides fixed route bus operations as well as Dial -a -Ride services for disabled citizens. The transit operation is funded by a contribution of $116,000 from the General Fund, approximately $30,000 in fare revenue with the balance made up from state and federal grants. The City continues to monitor the availability of state and federal funds for this program and manages staffing and service levels to available resources. Replacement of buses and vans is done as -needed and historically has occurred when grant funding is available. The spike in Capital Outlay in FY 2014-15 was for grant funded purchases. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 nm tent4i hrnpacts &nd Issues Should a large, unanticipated curtailment of state and/or federal grant revenue occur, this program could potentially be drastically curtailed or discontinued as replacement funding is not anticipated to be available from the General Fund. In addition, the declining fund balance displayed at the end of the forecast horizon may necessitate General Fund support of the transit fund. The landscape recently installed at the new Woodburn Memorial Transit Facility will likely generate additional maintenance costs during this five year period. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 9 61 Street Fug Var4nces fro nStatus Q,uow nlpboi n • None State gas taxes are the largest source of revenue, followed by privilege taxes paid by PGE and NW Natural. Street projects that had previously been budgeted as capital projects have been reevaluated and are now funded as operational expenses in the Street Fund. These include resurfacing projects that do not significantly reconstruct the roadbed, increase lane size or capacity. Projects related to, but not a part, of the 1-5 Interchange project were funded in FY 2013-14 causing an increase in Transfers. In FY 2014-15 a change was made to correctly classify maintenance activities into the Materials and Services budget instead of Capital Outlay. : to nt4i hrnpacts &n&nd Issues Due to the increase in the gas tax/registration/other fees, and the shifting of shared revenues (to cover street lighting expenses) to this fund, financing remains relatively stable for the forecast period. Privilege taxes are dependent not only on population growth, but can also be impacted by weather patterns. The new 1-5 Interchange landscaping will likely generate additional maintenance costs during this five year period, which would be a cost of this fund. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 10 62 4,000,000 Street Fund 3,500, 000 3,000,000 2,500,000 q il� q IIIIIIIIIITra nsfers II II©Capital 2,000,000 .... ....... .... ... ........il �.... .... it .._il� Outlay Mat &Svcs 1,500,000 1,000,000 500,000 .� ill I � II� I II� il� I � �......... �........ I I� it ly .�I^wlPersonnel -Revenue Fund Balance 2011--12 2012113 2013--14 2014-15 2015116....2016-17.... 2017118 2018119 2019-20 2020121 2021mm22 Actual Actual Actual Actual Actual Budget Forecast Forecast Forecast Forecast Forecast State gas taxes are the largest source of revenue, followed by privilege taxes paid by PGE and NW Natural. Street projects that had previously been budgeted as capital projects have been reevaluated and are now funded as operational expenses in the Street Fund. These include resurfacing projects that do not significantly reconstruct the roadbed, increase lane size or capacity. Projects related to, but not a part, of the 1-5 Interchange project were funded in FY 2013-14 causing an increase in Transfers. In FY 2014-15 a change was made to correctly classify maintenance activities into the Materials and Services budget instead of Capital Outlay. : to nt4i hrnpacts &n&nd Issues Due to the increase in the gas tax/registration/other fees, and the shifting of shared revenues (to cover street lighting expenses) to this fund, financing remains relatively stable for the forecast period. Privilege taxes are dependent not only on population growth, but can also be impacted by weather patterns. The new 1-5 Interchange landscaping will likely generate additional maintenance costs during this five year period, which would be a cost of this fund. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 10 62 Water Fug &i1&,i f ro� � Status o a w irn p b o i,i • None Revenues and treatment costs are driven by consumption, which due to increased conservations efforts by the City should continue to decline over the forecast period. 4,500,000 Water Fund 4,000, 000 3,500,000 NN 3,000,000,] g XXXXk Debt Service 2,500,000IIIIIIIIIIIIIIIITransfers Capital 2,000,000 I .� I . i q� Outlay M Mat & Svcs 1,500,000 i�+' Pr "r p Personnel Revenue �w�,gm�d,gm�d.Y d;��� ��d i������d i��n I;m�d,gm�d,gm.. �,���d�a„���d��N„ d;ga�d;gm�dN. "'d d,gm�d,gm�d.6 Y���d,gm�d,g���� �w�,gm�d,gm�d.Y Y"..d,gm�d,gm.. d,gm�d,gm�d.F Y���d,gm�d,g���� Fund Balance 1,000,000 kdilkdilkdl! vW„v,W;w,p: i di,d� ��������������i����!�� i dada„ ��i������������������i���� dada„d ������i����������i������� a dada„ �r�������i�6����i����� i da,°8' a dada„ �fw,gm�d;gm�d.Y I;m�d;gm�d,g^��� d;gm�d,gm�d.6 d,g^��� �fwd;gm�d,g �������i����������i���������� �;����d,gm�d,g^��� a���������i����������i����� 500,000 � �r�������i����������i����� �������i����������i���������� F �i����������i����������i���r 111 ������i����������i���������� dada„d a dada„ a�ik �4k„� �4k�������� i i � i dada„ dada„d a dada„ Pk 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Actual Actual Actual Actual Budget Forecast Forecast Forecast Forecast Forecast An update to the rate study and Master Plan may reveal the need for a rate adjustment. Management is monitoring these cost progressions and is working on recommendations for any revenue short falls in ensuing fiscal years. t&iL4i hii pact Mind Issues As personnel, material and services costs continue to increase, levels of service will become difficult to maintain. The update of the 2001 Water Master Plan currently underway will inform future operating needs and may impact rates. Additionally, unknown capacity improvements predicated by the UGB expansion may impact future capital needs. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 11 63 Sewer Fug Var4nces fro nStatus Quow nlpboi n • None To fund the ongoing capital projects, in FY 2014/15 the City Council approved a 9.5% rate increase. Sewer Fund 10,0 00, 000 n 8,000,000 d L ?Debt Service 6,000,000 IIIIIIIIIIIII Tra nsfers ©Capital Outlay k; Mat& Svcs _ �..... Ip���-.eel 4,000,000 - ! q� -Revenue I I I Fund Balance 2,000,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Actual Actual Actual Actual Budget Forecast Forecast Forecast Forecast Forecast In FY 2014-15, a change was made to correctly classify maintenance activities, such as repairs of sewer lines, as maintenance and not capital. The City now accounts for these maintenance activities within the Materials and Services budget instead of Capital Outlay. nm tent4i hrnpacts &nd Issues In 2007 the City entered a Mutual Order Agreement (MAO) with the Department of Environmental Quality which established an implementation framework, interim effluent limitations and schedule for completing improvements to the wastewater facility for compliance with winter -time ammonia limits and temperature total maximum daily load (TMDL). The temperature TMDL per the MAO was to be based on the findings of a separate water quality analysis that was currently being conducted by DEQ for the Mollala-Pudding River Sub -basin. The Mollala-Pudding River Sub -basin TMDL was issued by DEQ December 2008 and was subsequently approved the U.S. Environmental Protection Agency (EPA). An evaluation report was submitted to DEQ in April 2009, which provided the framework, implementation schedule and identified the required improvements needed to meet compliance with the established limits. In 2011 the City sold Wastewater Revenue and Refunding Bonds to fund the needed future wastewater treatment plan compliance upgrades. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 12 In January 2012 the final design plans were submitted to DEQ based on their previously approved evaluation report. In August 2013 EPA provided notice to DEQ disapproving of Oregon Water Quality Standards. Natural Conditions Criteria for Temperature, and Statewide Narrative Natural Conditions Criteria, in general. The Pudding River TMDL for temperature, established in 2008 using natural criteria, could no longer be used for permitting. Staff has been working with DEQ to update the current MAO to reflect the changes, limits and timeline that have been influenced by the court's decision. Until a water quality standard is established for the Pudding River, the City's National Pollutant Discharge Elimination System permit will not be renewed, nor can the City move forward with upgrades at the Water Treatment Plant as related to temperature compliance. Currently an outcome and timeline for DEQ in resolving temperature limits for water bodies that cannot meet numeric criteria is not known. Though the City has issued approximately $43 million in bonds for the project, many portions of the project are stalled until a decision is made. This brings uncertainty for the Sewer Fund because project costs will be more than estimated due to the multi-year delay. In addition to the uncertainty surrounding the permit and capital projects, unknown capacity improvements predicated by the UGB expansion may also impact future capital needs. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 13 65 VIII IIID VIII IIIDFunds Capital Construction Funds are not included in this forecast because their activity is limited by funds available. A more robust capital construction plan and reporting mechanisms were implemented for development during the 2014-15 budget cycle. ii n nii nii ig Fwnds The remaining 22 funds have dedicated revenue sources, are for a specific purpose, or have nominal activity. These funds have not been included as part of the Five -Year Forecast. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 14 Majar AssurnipBill l The assumptions for this forecast are based on historical trends and expected growth without the UGB expansion. Most revenues will be improved as the City's boundary grows, but there will be pressure on staffing levels or other expenses that may generate offsetting expenses in the short run. Revenue w ii n if b a n Property Taxes — General Fund Taxes are based on assessed value which is determined by the Marion County Assessor. Generally, assessed values grow by 3% per year as allowed by the state constitution, but has been impacted by compression. Reduced property tax revenue due to compression reached a peak during the recession, but has shown improvement in the last two years. There is no correlation between real market value and assessed value. The City's tax rate is permanently set at $6.0534 per $1,000 of assessed value, but is subject to limitation under Ballot Measures 5 and 50 limitations. The City has large taxpayers with values that are not increasing at the high rates of residential properties, some values even continue to decline. As a result of these factors, the City estimates property tax growth to be below 3% for the first two years of the forecast. Franchise Fees — General Fund These fees are assessments on the utility companies' gross receipts for using the City's right-of-way. Rates vary by type of utility ranging from 3% to 8%. Franchise fees are assessed on telecommunication, cable television, natural gas, electric utilities, ambulance and garbage. These revenues are expected to grow at a slow rate (less than 2%) for the forecast period. Charges for Goods & Services — Utility User Charges Water: The forecast assumes a 2% annual increase due to typical new development. Sewer: The forecast assumes a 2% annual increase for growth. The last rate increase adopted by City Council was effective July 1, 2014 at 9.5%. Gas Taxes The State Gas Tax is estimated with a growth rate of 2% per year. Building, Planning and Engineering Permits Permit revenues are based on identification of specific developments with assumptions based on which fiscal year the development is likely to begin. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 15 67 Major Assumptions — Expenditures Wages are assumed to increase by 2.5% per year across all funds and all labor groups. This is a conservative estimate considering that several labor contracts include a 2% cost of living adjustment and step increases that are often 3%. As mentioned previously, a growth rate of 10% has been used for insurance costs. PERS rate assumptions vary somewhat by fund. The current average rate for each fund was determined, then a 23% growth rate was applied for each of the next two biennium. Impacts of inflation are assumed to remain minor over the five years, remaining stable over the forecast period at 2%. Management has been aggressive in managing costs in this category to help offset growth in personnel services costs and has been successful in holding spending well under budgeted amounts. However, workers' compensation and other insurance rates may cause this category to exceed the management targets as years pass. n Ifs i to II EqWpirnent The Public Works Fund maintains a replacement reserve for capital equipment replacement and is funded via transfers from the Water, Streets and Sewer funds. The General Fund replaces equipment on an as -needed basis or emergency basis, with emphasis on whether funding is available. a t SerOce Estimates are based on amortization schedules for outstanding debt issues. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 16 Ii Capital Projects New construction and major repairs to the City's fixed assets Operating Position Recurring revenues and recurring expenditures Potential Impacts Refers to issues and challenges that are in addition to the status quo. The intent is to inform the reader of economic matters that might occur during the forecast period. Recurring Expenditures The expense portion of status quo, predictable and on-going costs Recurring Revenues The resource portion of status quo, predictable and ongoing revenues Revenues Includes both recurring revenues and transfers in Status Quo The current level of services Transfers In Internal charges by General Fund for services provided to other funds Urban Growth Boundary (UGB) A regional boundary around the City's perimeter used by local governments as a guide to zoning and land use decisions to control urban expansion onto farm and forest lands. City of Woodburn Five -Year Forecast 2017-18 to 2021-22 17 �'I �'1��r I Iii ♦ r�} B V' February 13, 2017 TO: Honorable Mayor and City Council through City Administrator FROM: Eric Liljequist, Interim Public Works Director SUBJECT: Acceptance of a Public Utility Easement within the Development at 2499 N Front Street, Woodburn, OR 97071 (Tax Lot 051 W08B00300) RECOMMENDATION: That City Council accepts the 5 feet wide Public Utility Easement for public utilities granted by Kerr Contractors, property owner of 2499 N Front Street, Woodburn OR 97071 (Tax Lot 051 W081300300). BACKGROUND: A 5' public utility easement was required as a result of the initiation of industrial development at 2499 N Front Street. This public utility easement extends along the eastern property frontage of and will allow for the installation of public utilities. DISCUSSION: The Public Utility Easement is a 5.0 feet wide Public Utility Easement that is located along the easterly property boundary at 2499 N Front Street, Woodburn OR 97071. It provides a permanent easement and right-of-way to construct, reconstruct, operate, and maintain public utilities. FINANCIAL IMPACT: There is no cost to the City for this Public Utility Easement since it was donated by the property owner as a result of the initiation of industrial development at 2499 N Front Street. ATTACHMENTS A Copy of the properly signed public utility easement documents is included in Exhibit "A" and Exhibit "B". Agenda Item Review: City Administrator _x City Attorney _x_ Finance —x- 70 AFTER RECORDING RETURN TO: Woodburn City Recorder City of Woodburn 270 Montgomery Street Woodburn, OR 97071 CITY OF WOODBURN, OREGON PUBLIC UTILITY EASEMENTS Woodburn Industrial Capital Group, LLC, GRANTOR, grants to the CITY OF WOODBURN, OREGON, hereinafter called CITY, a permanent easement and right-of- way, including the permanent right to construct, reconstruct, operate, and maintain public utilities on the following described land: See attached Exhibit 'A" Legal Description of Permanent Easement and attached Exhibit "B" Sketch for Legal Description of Permanent Easement which are by this reference incorporated herein GRANTOR reserves the right to use the surface of the land for any purpose that will not be inconsistent or interfere with the use of the easement by CITY. No building or utility shall be placed upon, under, or within the property subject to the foregoing easement during the term thereof, however, without the written permission of CITY. Upon completion of the construction, CITY shall restore the surface of the property to its original condition and shall indemnify and hold GRANTOR harmless against any and all loss, cost, or damage arising out of the exercise of the rights granted herein. The true consideration of this conveyance is zero dollars ($0), and other valuable consideration, the receipt of which is acknowledged by GRANTOR. GRANTOR covenants to C/TYthat GRANTOR is lawfully seized in fee simple of the above -granted premises, free from all encumbrances and that GRANTOR and their heirs and personal representatives shall warrant and forever defend the said premises and every part thereof to CITY against the lawful claims and demands of all persons claiming by, through, or under GRANTOR. S-(:- - DATED this day of _ (,_- 3 GV_1P1 dzl�_' 20-a. \1 Public Utility Easements (Permanent) Page 1 of 4 Woodburn Industrial Capital Group, LLC BY: Tim Kerr, Member 71 CORPORATE ACKNOWLEDGEMENT STATE OF OREGON, County of Marion ) ss. The foregoing instrument was acknowledged before me this k day of 2011 by Tim Kerr as a Member of Woodburn Industrial Capital Group, LLC a cor#bration and the foregoing instrument was signed and sealed on behalf of said corporation by authority of its Board of Directors; and each of them acknowledged said instrument to be its voluntary act and deed. OFFICIAL STAMP ELENA MASALIGIN ff NOTARY PUBLIC - OREGON COMMISSION NO. 942770 it MY COMMISSION EXPIRES SEPTEMBER 09,2 i9 0 City of Woodburn 270 Montgomery Street Woodburn, OR 97071 NOTARY PUBLIC FOR OREGON My Commission Expires: C,' Accepted on behalf of the City of Woodburn: City Recorder: Heather Pierson Public Utility Easements (Permanent) Page 2 of 4 72 AKSAKS ENGINEERING & FORESTRY, LLC 12965 SW Herman Road, Suite 100, Tualatin, OR 97062 AKS Job #5793 P:(503)563-6151 F:(503)563.6152 EERING & FORESTRY OFFICES IN: TUALATIN, OR - VANCOUVER, WA - SALEM-KEIZER, OR EXHIBIT A Public Utility Easement A portion of the Jackson Cooley Donation Land Claim No. 50, located in the Northwest One - Quarter of Section 8, Township 5 South, Range 1 West, Willamette Meridian, City of Woodburn, Marion County, Oregon, and being more particularly described as follows: Beginning at the northerly northwest corner of the Jackson Cooley Donation Land Claim Number 50; thence along the westerly line of said claim, South 17'33'12" West 915.67 feet to the northerly line of Deed Reel 3892 Page 0018; thence along said northerly line, South 64°24'06" East 1 ] 47.60 feet to the True Point of Beginning; thence continuing along said northerly line, South 64°24'06" East 5.24 feet to a line parallel with and 49.00 feet northwesterly of the centerline of Front Street; thence along said parallel line, South 42°56'51" West 261.24 feet; thence along a curve to the left with a Radius of 7688.44 feet, Delta of 1°03'03", Length of 141.01 feet, and a Chord of South 42'25'19" West 14 1.01 feet to the southerly line of said Deed; thence along said southerly line, North 64°14'30" West 5.20 feet to a line parallel with and 54.00 feet northwesterly of said centerline; thence along said parallel line, along a non-tangential curve to the right with a Radius of 7693.44 feet, Delta of 1'03'42", Length of 142.55 feet, and a Chord of North 42025'00" East 142.55 feet; thence North 42°56'51" East 259.68 feet to the True Point of Beginning. The above described tract of land contains 2,011 square feet, more or less. 01/18/2017 REGISTERED PROFESSIONAL LAND SURVEYOR OREGON JANUARY 12, 2016 MICHAEL S. KAUNA 89558PLS RENEWS: 6/30/17 73 EXHIBIT B A PORTION OF THE JACKSON COOLEY DONATION LAND CLAIM NO. 50, LOCATED IN THE NW 1/4 OF SEC. 81 T5S, R1 W, W.M., CITY OF WOODBURN, MARION COUNTY, OREGON CURVE TABLE CURVE RADIUS DELTA LENGTH CHORD Cl 7688.44' 1'03'03" 141.01' S42'25'19"W 141.01' C2 7693.44' 1'03'42" 142.55' N42'25'00"E 142.55' fo SCALE: 1 "= 60 FEET 60 0 24 36 48 60 PREPARED FOR KERR CONTRACTORS, INC. PO BOX 1060 WOODBURN, OR 97071 EXH. D DEED REEL 3024 PAGE 0476 N6414'30"W 01/18/2017 5.20' REGISTERED PROFESSIONAL LAND SURVEYOR OREGON JANUARY 12, 2016 MICHAEL S. KAUNA 89558PLS RENEWS; 6/30/17 DWG: 5793 20170110 D(HIBITS I B2 DEED REEL 3892 PAGE 0018 AREA: 2,011 SFf S, POINT OF BEGINNING NORTHERLY NW CORNER JACKSON COOLEY DLC NO. 50 S64'24'06"E 5.24' DEED Ss , REEL 1376 >>lr� 06�, PAGE 0335 TRUE POINT , OF BEGINNING ao � �9 V i 5°c Pow O OP '4 / 919- NY PT STA 40+23.6 PER MCSR 2357 i PUBLIC UTILITY EASEMENT EXHIBIT B AKS ENGINEERING & FORESTRY, LLCDRWN: M 12965 SW HERMAN RD, STE 100 AK CHKD: N! TUALATIN, OR 97062 AKS JOB: P:503.563.6151 F:503.563.6152 aks—en .com Aillul 5793 74 �'I �'1��r I Iii ♦ r�} B V' February 13, 2017 TO: Honorable Mayor and City Council through City Administrator FROM: Eric Liljequist, Interim Public Works Director SUBJECT: Acceptance of a Warranty Deed along the Easterly Portion of the Development at 2499 N Front Street, Woodburn, OR 97071 (Tax Lot 051 W0811300300) RECOMMENDATION: That City Council accepts the Right -of -Way Dedication granted by Woodburn Industrial Capital Group, LLC, property owner of 2499 N Front Street, Woodburn OR 97071 (Tax Lot 051 W081300300). BACKGROUND: A 19' width Right -of -Way Dedication was required as a result of the initiation of industrial development at 2499 N Front Street. This Right -of -Way Dedication was required in order to comply with the cross-sectional street requirements of the Woodburn Transportation System Plan. DISCUSSION: The Right -of -Way Dedication is a 19' wide strip of land located along the easterly boundary of the property located at 2499 N Front Street, Woodburn OR 97071. FINANCIAL IMPACT: There is no cost to the City for this Warranty Deed since it was dedicated by the property owner as a result of the initiation of industrial development at 2499 N Front Street. ATTACHMENTS A Copy of the properly signed Warranty Deed documents is included in Exhibit "A" and Exhibit "B". Agenda Item Review: City Administrator _x_ City Attorney x_ Finance _x- 75 After Recording Return to: City Recorder City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 Send Tax Statements to: City Recorder City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 STATUTORY WARRANTY DEED Woodburn Industrial Capital Group, LLC, Grantor, conveys and warrants to CITY OF WOODBURN, a municipal corporation of the State of Oregon, Grantee, the following described real property free of encumbrances except as specifically set forth herein: Description: See attached Exhibit "A" Legal Description of Right -of - Way Dedication and attached Exhibit `B" Sketch for Legal Description of Right -of -Way Dedication which are by this reference incorporated herein Exceptions: None The true and whole consideration for this conveyance is $0. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 Page 1 of 4 76 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. C;1'r Dated this day of 201-) Signed. STATE OF OREGON County of Marion ss This instrument was acknowledged before me on 20 Q, by OFFICIAL STAMP ELENA MASALIGIN NOTARY PUBLIC - OREGON -9 COMMISSION NO. 942770 MY COMMISSION EXPIRES SEPTEMBER 09, 2010 By: Notary Public for Oregon My Commission Expires: 77 Page 2 of 4 AAK ENGINEERING & FORESTRY AKS ENGINEERING & FORESTRY, LLC 12965 SW Herman Road, Suite 100, Tualatin, OR 97062 P: (503) 563-6151 F: (503) 563-6152 OFFICES IN: TUALATIN, OR - VANCOUVER, WA - SALEM-KEIZER, OR EXHIBIT A Right -of -Way Dedication AKS Job #5793 A portion of the Jackson Cooley Donation Land Claim No. 50, located in the Northwest One - Quarter of Section 8, Township 5 South, Range 1 West, Willamette Meridian, City of Woodburn, Marion County, Oregon, and being more particularly described as follows: Beginning at the northerly northwest corner of the Jackson Cooley Donation Land Claim Number 50; thence along the westerly line of said claim, South 17'33'12" West 915.67 feet to the northerly line of Deed Reel 3892 Page 0018; thence along said northerly line, South 64°24'06" East 1152.84 feet to the True Point of Beginning; thence continuing along said northerly line, South 64°24'06" East 19.91 feet to the northwesterly right-of-way line of Front Street (30.00 feet from centerline); thence along said northwesterly right-of-way line, South 42°56'51" West 267.18 feet; thence along a curve to the left with a Radius of 7669.44 feet, Delta of 1'00'35", Length of 135.16 feet, and a Chord of South 42°26'33" West 135.16 feet to the southerly line of said Deed; thence along said southerly line, North 64°14'30" West 19.78 feet to a line parallel with and 19.00 feet northwesterly of the northwesterly right-of-way line of Front Street; thence along said parallel line, along a non-tangential curve to the right with a Radius of 7688.44 feet, Delta of 1'03'03", Length of 141.01 feet, and a Chord of North 42'25'19" East 141.01 feet; thence North 42°56'51" East 261.24 feet to the True Point of Beginning. The above described tract of land contains 7,644 square feet, more or less. 01/18/2017 REGISTERED PROFESSIONAL LAND SURVEYOR OREGON JANUARY 12, 2016 MICHAEL S. KAUNA 89558PLS RENEWS: 6/30/17 78 EXHIBIT B A PORTION OF THE JACKSON COOLEY DONATION LAND CLAIM NO. 50, LOCATED IN THE NW 1/4 OF SEC. 81 T5S, R1 W, W.M., CITY OF WOODBURN, MARION COUNTY, OREGON CURVE TABLE CURVE RADIUS DELTA LENGTH CHORD Cl 7669.44' 1'00'35" 135.16' S42'26'33"W 135.16' C2 7688.44' 1'03'03" 141.01' N42'25'19"E 141.01' \I SCALE: 1 "= 60 FEET I %d" 60 0 24 36 48 60 PREPARED FOR KERR CONTRACTORS, INC. PO BOX 1060 WOODBURN, OR 97071 EXH. D DEED REEL 3024 PAGE 0476 N64'14'30"W 01/19/2017 19.78' REGISTERED PROFESSIONAL LAND SURVEYOR OREGON JANUARY 12, 2016 MICHAEL S. KALINA 89558PLS RENEWS: 6/30/17 DWG: 5793 20170110 EXHIBITS I B1 DEED REEL 3892 PAGE 0018 \ AREA: 7,644 SFt �rn POINT OF BEGINNING NORTHERLY NW CORNER JACKSON COOLEY DLC NO. 50 S64'24'06"E DEED 19'91' REEL 1376 S6¢¢a , PAGE 0335 >>s28¢se l TRUE POINT OF BEGINNING �9:, soh C, PT STA 40+23.6' PER MCSR 2357 i RIGHT-OF-WAY DEDICATION EXHIBIT B AKS ENGINEERING & FORESTRY, LLC DRWN: M' 12965 SW HERMAN RD, STE 100 AK CHKD: N`. TUALATIN, OR 97062 AKS JOB: P:503.563.6151 F:503.563.6152 aks—en .com 5793 79