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January 22, 2018 Agenda
FIGLEY,MAYOR HRYN CITY OF W OO D B U R N JUAN SERRATOS,TCOUNCILOR WARD 1 LISA ELLSWORTH,COUNCILOR WARD II CITY COUNCIL AGENDA ROBERT CARNEY,COUNCILOR WARD III SHARON SCHAUB,COUNCILOR WARD IV FRANK LONERGAN,COUNCILOR WARD V .JANUARY 22, 2018 - 7.00 P.M. ERIC MORRIS,COUNCILOR WARD VI CITY HALL COUNCIL CHAMBERS-270 MONTGOMERY STREET 1. CALL TO ORDER AND FLAG SALUTE 2. ROLL CALL 3. ANNOUNCEMENTS AND APPOINTMENTS Announcements: None. Appointments: A. Transportation System Plan Citizen Advisory Committee 1 Appointments and Presentation • Mark Hester • Sheryl Southwell • Eilas Villagas • John Zobrist • Kasi Pankey • Dawn Cole • Charlie Piper • City Council member (mayor choice) 4. SWEARING-IN CEREMONY 5. COMMUNITY/GOVERNMENT ORGANIZATIONS A. Chad Freeman - SEDCOR 6. PROCLAMATIONS/PRESENTATIONS Proclamations: A. Frank Sutter Day 2 Presentations: B. Woodburn Public Arts and Mural Program 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.** January 22, 2018 Council Agenda Page i 7. COMMUNICATIONS None. 8. BUSINESS FROM THE PUBLIC - This allows the public to introduce items for Council consideration not already scheduled on the agenda. 9. 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 8, 2018 3 Recommended Action: Approve the minutes. B. Building Activity for December 2017 6 Recommended Action: Receive the report. C. Crime Statistics through December 2017 7 Recommended Action: Receive the report. 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. Council Bill No. 3055 - An Ordinance Regulating Solid Waste 13 Management Including, without Limitation, Granting an Exclusive Solid Waste Franchise to United Disposal Service, Inc., an Oregon Corporation, dba Republic Services of Marion County-Woodburn"; Establishing Service Standards and Establishing Public Responsibility; Repealing Ordinance 1641; Prescribing Penalties; and Stating an Effective Date. Recommended Action: Adopt the attached Solid Waste Franchise Ordinance with United Disposal Service, Inc. doing business as Republic Services of Marion County- Woodburn. B. Assignment of Statutory Development Agreement- Boones Crossing 49 Development (SDA 2016-01) January 22, 2018 Council Agenda Page ii Recommended Action: Authorize the City Administrator to execute the following documents: 1 . An Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC (Assignor) to Stafford Homes & Land, LLC (Assignee) 2. An Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC (Assignor) to Claud and Virginia Davis (Assignee) C. FY 2018/19 Financial Plan 64 Recommended Action:Adopt the attached FY 2018-19 Financial Plan (Budget Policies & Fiscal Strategy and Five-Year Financial Forecast) via a motion. 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. None. 14. CITY ADMINISTRATOR'S REPORT 15. MAYOR AND COUNCIL REPORTS 16. EXECUTIVE SESSION To consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed pursuant to ORS 192.660 (2)(h). To consider records that are exempt by law from public inspection pursuant to ORS 192.660 (2)(f). 17. ADJOURNMENT January 22, 2018 Council Agenda Page iii OFF I Iii♦ r} B V' January 17, 2018 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, January 22, 2018. No reply is required if you approve of my decision. Transportation System Plan Citizen Advisory Committee Mark Hester Sheryl Southwell Eilas Villagas John Zobrist Kasi Pankey Dawn Cole Charlie Piper City Council member (mayor choice) 1 FRANK SUTTER DAY January 319 2018 Whereas, Frank Sutter began his service to the City of Woodburn on July 8, 1974, and Whereas, Frank served the City in many valuable capacities from that time until his appointment as Water Superintendent on January 24, 2000, and Whereas, Frank has demonstrated his dedication to his profession through countless hours of work and constant efforts to improve his knowledge and the function of his organization, and Whereas, throughout his career, Frank has played a vital role in providing high quality and safe drinking water to the residents of Woodburn, and Whereas, Frank was instrumental to the successful completion of many significant water system improvements, including the construction of three water treatment plants, the implementation of enhanced treatment systems, and the expansion of the transmission and distribution network, and Whereas, Frank recently announced his retirement from his position as Water Superintendent, effective January 31, 2018, Now therefore, I, Kathy Figley, Mayor of the City of Woodburn, proclaim January 31, 2018, to be FRANK SUTTER DAY. I encourage Woodburn's citizens to thank Frank for his service and example and to wish him well in the future chapters of his life. IN WITNESS WHISEOF, I have hereunto set my hand and caused the seal of the City of Woodburn to be affixed this 22nd day of January 2018. Kathy Figley Mayor, City of Woodburn 2 COUNCIL MEETING MINUTES JANUARY 8, 2018 0:00 DATE COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JANUARY 8, 2018 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 Serratos Absent Staff Present: City Administrator Derickson, City Attorney Shields, Assistant City Administrator Row, Community Development Director Kerr, Police Chief Ferraris, Public Works Director Liljequist, Economic Development Director Johnk, Finance Director Montoya, Human Resources Director Mel Gregg, Lieutenant Millican, Community Relations Manager Gutierrez-Gomez, Communications Coordinator Horton, City Recorder Pierson 0:00 ANNOUNCEMENTS A. City Hall and the Library will be closed on January 15 for Martin Luther King Jr. Day. The Aquatic Center and Transit will be open normal hours. 0:01 WOODBURN POLICE DEPARTMENT SWEARING-IN CEREMONY: New police officer Juan Morales was sworn in by Police Chief Ferraris. 0:07 WOODBURN POLICE DEPARTMENT AWARDS CEREMONY Police Chief Ferraris presented the following awards to officers of the Woodburn Police Department: Captain Tom Tennant Memorial Service Award - Officer Jorge Gaspar Distinguished Service Medal - Officer Aaron DeVoe Lifesaving Medal - Sergeant Colleen Altabef and Officer Jarrod Bowers Lifesaving Medal and Letter of Commendation - Officer Geoff Carpenter, Officer Zachary Williams, and Officer Matt Stearns Commendation Medal - Officer Robert Prinslow Police Chief Ferraris presented the following awards to members of the community: Commendation Medal - Tim Quinn Page 1 - Council Meeting Minutes, January 8, 2018 3 COUNCIL MEETING MINUTES JANUARY 8, 2018 Chief's Certificate of Appreciation - Chief Paul Iverson (Ret), Shawn Baird, Paul Bickmore, Ewart Brown, Al Herriges, Eric Swenson, and Rhonda Judson Mayor Figley called for a 15 minute recess 0:30 PRESENTATION Auditor's Report— Chuck Swank, Grove Mueller & Swank, P.C., informed the Council that the 2016-2017 audit is complete and the City received an unmodified opinion. 0:36 BUSINESS FROM THE PUBLIC Merri Berlin, 167 N. Settlemier, is concerned about the property on First Street that has been covered by garbage and blue tarps for months. She added that the Pix Theater also continues to be a blight. She stated that she would like the City to change the current ordinances and codes so that the City is able to do something to correct these issues and better serve the community. 0:40 CONSENT AGENDA A. Woodburn City Council minutes of December 11, 2017, B. Woodburn City Council Work Session minutes of December 11, 2017, C. Building Activity for November 2017. Lonergan/Schaub... adopt the Consent Agenda. The motion passed unanimously. 0:42 ACCEPTANCE OF A PUBLIC MAINTENANCE & SLOPE EASEMENT ON A PORTION OF LOT 1 AND LOT 2 OF "I-5 LOGISTICS CENTER" LOCATED IN THE SE 1/4 OF SECTIONI4, TOWNSHIP 5 SOUTH, RANGE 2 WEST, W.M., MARION COUNTY, OREGON Lonergan/Morris... accept the Public Maintenance and Slope Easement on a portion of Lot 1 and Lot 2 of"I-5 Logistics Center" Located in the SE 1/4 of Section 14, Township 5 South, Range 2 West,W.M., Marion County, Oregon, granted by Darma Real Estate Partnership LP, a Texas limited partnership, property owner of subject tax lots. The motion passed unanimously. ACCEPTANCE OF A RELINQUISHMENT DEED FOR SECTIONS OF EVERGREEN ROAD AND TOM TENNANT DRIVE PER OREGON DEPARTMENT OF TRANSPORTATION COOPERATIVE IMPROVEMENT AGREEMENT NO. 25169 Lonergan/Schaub... accept the relinquishment deed for stipulated sections of Evergreen Road and Tom Tennant Drive per an Oregon Department of Transportation (ODOT) Cooperative Improvement Agreement No. 25169. The motion passed unanimously. AWARD PROFESSIONAL SERVICES CONTRACT FOR BUILDING REPAIR & MAINTENANCE SERVICES TO GC QUALITY CONSTRUCTION, LLC Morris/Schaub... acting in its capacity as the Local Contract Review Board, authorize the City Administrator to enter into a Professional Services Agreement with GC Quality Construction, LLC for the Building Repair & Maintenance Services. Councilor Ellsworth Page 2 - Council Meeting Minutes, January 8, 2018 4 COUNCIL MEETING MINUTES JANUARY 8, 2018 recused herself from voting. The motion passed with Councilor Ellsworth not voting. 0:43 CALL-UP BRIEFING: PLANNING COMMISSION APPROVAL OF A CONDITIONAL USE APPLICATION FOR TIENDA MEXICANA AT 311 N. FRONT ST (CU 2017-04) The Council declined to call this item up for review. 0:44 CITY ADMINISTRATOR'S REPORT City Administrator Derickson passed out a copy of the City's first edition of the economic development quarterly newsletter. He also passed out a flyer that will be used to promote tourism activities in Woodburn. 0:45 MAYOR AND COUNCIL REPORTS Councilor Carney stated that he is pleased to be back after a wonderful holiday and looks forward to the remainder of the year. Councilor Lonergan thanked Chief Ferraris and Communications Coordinator Horton for putting together a nice ceremony tonight. Mayor Figley concurred with Councilor Lonergan and added that the general public is interested in what the police department does and having an opportunity to highlight their real special achievements is huge. Councilor Ellsworth wanted to let Ms. Berlin know that she hears her and that the she shares her concerns. Councilor Schaub concurred with Councilor Ellsworth. She added that she is proud of Woodburn. Councilor Morris stated that the meeting tonight was great and he looks forward to a great 2018. ADJOURNMENT Morris/Schaub... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:51 p.m. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Heather Pierson, City Recorder City of Woodburn, Oregon Page 3 - Council Meeting Minutes, January 8, 2018 5 Ci WOODBURN Economic and Development Services Department MEMORANDUM 270 Montgomery Street Woodburn, Oregon 97071 (503)982-5246 Date: January 9, 2018 To: Chris Kerr, Community Development Director From: Building Division Subject: Building Activity for December 2017 2015 ..._...........� 20.................................................................... ................�._._._......._... 16 2017 No. Dollar Amount No. Dollar Amount No. Dollar Amount ._. Single-Family Residential _ ..... .... . _.. e I 7 $2,610,167 0 $0 0 $0 Multi-Family-Residential 0 $0 0 $0 0 $0 Assisted Living Facilities 0 $0 0 $0 0 $0 Residential Adds &Alts 1 $5,500 2 $8,260 3 $236,148 Industrial 1 $25,000 0 $0 0 $0 _Commercial �._.�. ._ _ .. .._............ 8 $3,886,382 3 $519,700 8 $855,906 Signs and Fences 0 _ �mm $0 1 $11,700 0 mm mmmmmmmmmmm- __�.... Manufactured Homes 1 $150,000 0 $0 1 $1,000 TOTALS 18 $6,677,049 6 $214,302 12 $1,093,054 ........ ..... _..__ _... _... Fiscal Year to Date (July 1 — $15,793,310 $4,450,569 $12,321,581 June 30) ' I:\Community Development\Building\Building Activity\B1dgAct-2017\B1dg Activity-Memos\memo-2017-12 December.doc 6 1/17/2018 Woodburn Police Department MONTHLY ARRESTS BY OFFENSES 2017 Year to Date CHARGE DESCRIPTION Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total AGGRAVATED ASSAULT 2 4 1 3 5 11 4 8 5 3 2 6 5 ANIMAL CRUELTY 0 1 0 0 0 0 0 0 0 2 0 0 3 ANIMAL ORDINANCES 0 0 1 2 0 2 1 2 5 3 3 5 2 ARSON 0 0 0 0 0 0 1 0 0 0 0 0 1 ASSAULT SIMPLE 10 5 13 10 12 7 13 18 14 6 21 3 132 ATTEMPTED MURDER 1 0 0 0 0 0 0 0 1 0 0 0 2 BURGLARY- BUSINESS 0 1 2 0 2 0 0 2 0 0 1 0 8 BURGLARY-OTHER STRUCTURE 0 1 1 2 0 0 0 0 0 1 0 0 BURGLARY- RESIDENCE 0 5 3 1 1 5 61 0 0 01 0 1 22 CHILD NEGLECT 0 1 1 0 0 1 0 0 0 0 0 0 3 CITY ORDINANCE 0 0 0 0 0 1 0 0 0 0 0 0 1 CRIME DAMAGE-NO VANDALISM OR ARSON 3 6 6 6 4 3 1 4 0 3 3 5 4 CURFEW 0 0 1 0 0 0 0 5 0 0 1 0 7 CUSTODY- DETOX 0 0 0 1 0 0 0 0 0 0 0 0 1 CUSTODY- MENTAL 0 5 3 6 4 5 4 4 6 6 2 2 47 DISORDERLY CONDUCT 7 33 4 11 10 1 10 7 9 5 7 0 104 DRIVING UNDER INFLUENCE 7 2 9 6 6 5 7 7 3 4 6 7 69 DRUG LAW VIOLATIONS 10 12 16 14 12 121 12 12 10 10 7 8 135 DWS/REVOKED -FELONY 0 0 0 0 0 0 0 0 0 1 0 0 1 DWS/REVOKED-MISDEMEANOR 1 2 0 4 4 1 2 1 2 0 0 2 19 ELUDE 1 4 1 0 1 1 2 0 0 0 0 0 10 EM BEZZLEM ENT 0 0 0 0 0 0 1 0 0 0 0 0 1 ESCAPE FROM YOUR CUSTODY 2 0 0 0 0 0 0 0 0 0 0 0 2 FAIL TO DISPLAY OPERATORS LICENSE 0 1 2 0 0 1 0 1 1 0 0 0 6 FAILURE TO REGISTER AS SEX OFFENDER 0 0 0 0 0 0 0 0 1 2 0 0 3 FORCIBLE RAPE 0 0 1 0 0 0 2 1 0 0 0 1 5 FORGERY/COUNTERFEITING 0 0 0 0 0 0 3 0 1 0 0 0 4 FRAUD -CREDIT CARD/AUTOMATIC TELLER MACHINE 1 0 1 0 0 0 0 0 0 0 0 2 4 FRAUD -OF SERVICES/FALSE PRETENSES 0 2 0 0 0 0 0 0 1 0 1 0 4 FUGITIVE ARREST FOR ANOTHER AGENCY 35 26 39 49 38 26 27 25 31 31 29 26 382 FURNISHING 0 0 0 0 2 0 1 0 1 0 0 0 4 GARBAGE LITTERING 1 0 0 0 0 0 1 0 0 0 1 0 3 HIT AND RUN FELONY 0 0 0 1 0 1 1 0 0 0 0 1 4 HIT AND RUN-MISDEMEANOR 1 2 4 2 1 4 0 3 3 4 2 4 30 IDENTITY THEFT 1 0 0 0 0 0 1 0 0 0 0 2 4 INTIMIDATION /OTHER CRIMINAL THREAT 2 6 3 7 4 5 6 4 1 1 4 0 43 KIDNAP -FOR ADDITIONAL CRIMINAL PURPOSE 0 0 0 0 0 0 1 0 0 0 0 0 1 KIDNAP -HOSTAGE/SHIELD OR REMOVAL/DELAY WITN 0 0 0 0 1 0 0 0 0 0 0 0 1 MINOR IN POSSESSION 1 5 0 0 3 1 6 3 2 3 1 3 28 MINOR IN POSSESSION -TOBACCO 0 0 0 0 0 0 0 0 0 1 0 0 1 MOTOR VEHICLE THEFT 2 1 3 3 3 1 0 0 1 2 0 0 16 OTHER 5 5 7 5 2 0 4 1 2 3 5 2 41 PROPERTY RECOVER FOR OTHER AGENCY 0 0 0 1 0 0 0 0 2 0 0 0 3 RECKLESS DRIVING 2 1 5 2 4 3 1 1 2 1 3 5 30 RECKLESSLY ENDANDERING 2 2 3 1 2 1 1 2 1 0 0 0 1 RESTRAINING ORDER VIOLATION 0 1 1 1 2 0 1 3 0 1 4 0 1 ROBBERY- BUSINESS 6 0 0 0 0 0 0 0 0 0 2 0 8 ROBBERY-OTHER 0 0 0 0 4 4 0 0 0 0 0 0 8 ROBBERY- RESIDENCE 0 0 1 0 0 0 0 0 2 1 0 0 4 RUNAWAY 1 0 1 0 0 3 2 1 0 2 1 0 11 EX CRIME -CONTRIBUTE TO SEX DELINQUENCY 0 0 0 0 2 0 0 1 0 0 0 0 3 EX CRIME -EXPOSER 0 0 0 0 1 0 0 0 0 0 1 0 2 EX CRIME -FORCIBLE SODOMY 0 0 1 0 0 0 0 0 0 0 0 1 2 EX CRIME -INCEST 0 0 3 0 0 0 01 01 0 0 0 0 3 Page 1 of 2 7 1/17/2018 Woodburn Police Department MONTHLY ARRESTS BY OFFENSES 2017 Year to Date an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total EX CRIME -MOLEST(PHYSICAL) 11 0 1 0 0 0 1 0 0 0 1 2 6 EX CRIME -NON FORCE SODOMY 0 0 0 0 0 0 0 1 0 0 0 0 1 EX CRIME -NON-FORCE RAPE 0 0 1 0 0 0 1 1 0 0 2 1 6 EX CRIME -PORNOGRAPHY/OBSCENE MATERIAL 0 0 0 0 2 0 0 0 0 0 0 0 2 EX CRIME -SEXUAL ASSAULT WITH AN OBJECT 0 0 1 0 0 0 0 0 0 0 0 1 2 TALKER 0 0 1 0 0 0 0 0 1 0 1 1 STOLEN PROPERTY- RECEIVING,BUYING,POSSESSING 4 0 0 0 0 0 0 0 0 0 0 0 HEFT- BICYCLE 0 0 0 0 0 0 1 0 0 0 0 0 1 HEFT- BUILDING 0 2 3 1 0 3 0 0 0 0 1 0 10 HEFT- FROM MOTOR VEHICLE 1 0 2 0 4 0 0 0 0 0 0 0 7 HEFT-OTHER 2 2 3 3 4 1 1 2 2 0 1 4 2 HEFT- PURSE SNATCH 3 2 0 0 0 0 1 0 0 0 0 1 7 HEFT-SHOPLIFT 11 2 4 4 4 2 5 6 3 2 9 6 58 TRAFFIC VIOLATIONS 4 7 12 12 10 21 15 10 8 7 8 12 126 TRESPASS 6 11 8 7 6 8 4 6 7 1 3 5 72 UNAUTHORIZED ENTRY INTO MOTOR VEHICLE 0 4 1 1 2 1 0 0 1 1 4 0 1 VANDALISM 0 4 1 1 3 4 7 8 0 0 1 3 32 EHICLE RECOVERD FOR OTHER AGENCY 0 2 1 0 0 0 0 1 0 0 3 0 7 EAPON -CARRY CONCEALED 0 0 2 0 1 0 0 3 1 0 0 1 8 EAPON -EX FELON IN POSSESSION 2 0 2 0 0 0 0 1 2 0 0 1 8 EAPON -POSSESS ILLEGAL 2 7 1 1 1 4 0 5 3 1 3 1 29 EAPON -SHOOTING IN PROHIBITED AREA 2 0 0 0 0 0 1 0 01 0 1 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2017 Total 142 177 181 168 167 149 159 160 135 108 145 1251,816 2016 Total 140 108 144 144 156 141 163 193 151 146 166 106 1758 2015 Total 206 157 155 187 166 249 200 139 168 141 104 132 2004 Arrests/Year 2400 2000 1600 / GN`1 1200 Q 800 400 0 2015 2016 2017 Year Page 2 of 2 8 1/17/2018 Woodburn Police Department MONTHLY CRIMINAL OFFENSES 2017 Year to Date CHARGE DESCRIPTION Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total AGGRAVATED ASSAULT 3 5 1 7 4 11 5 10 4 6 4 5 6 ANIMAL CRUELTY 0 1 0 0 0 0 0 0 1 3 0 1 6 ANIMAL ORDINANCES 1 0 1 2 0 3 2 1 5 3 5 3 26 ARSON 0 0 1 0 2 0 2 0 0 1 1 3 10 ASSAULT SIMPLE 16 8 15 15 18 15 21 201 241 11 24 17 204 ATTEMPTED MURDER 1 0 0 0 0 0 0 0 2 0 0 0 3 BURGLARY- BUSINESS 5 2 7 6 6 5 3 1 1 1 3 2 42 BURGLARY-OTHER STRUCTURE 2 5 4 1 2 1 0 0 0 3 1 0 19 BURGLARY- RESIDENCE 4 4 5 6 5 4 11 5 1 2 3 5 5 CHILD ADBANDOMENT 0 0 0 0 0 0 0 0 0 0 0 1 1 CHILD NEGLECT 1 1 1 1 2 1 1 0 0 0 0 0 8 CITY ORDINANCE 0 1 0 0 0 2 0 0 0 0 0 0 3 COMPUTER CRIME 0 0 0 2 0 1 0 0 0 0 1 0 4 CRIME DAMAGE-NO VANDALISM OR ARSON 18 17 23 17 14 11 10 12 9 11 13 19 174 CRIMINAL MISTREATMENT 0 2 2 1 0 0 0 0 0 0 0 0 5 CURFEW 0 0 1 0 0 0 0 2 0 1 1 0 5 CUSTODY- DETOX 0 0 0 1 0 0 0 0 0 0 0 0 1 CUSTODY- MENTAL 1 6 3 6 4 5 4 5 6 6 2 2 50 DISORDERLY CONDUCT 7 11 10 13 14 6 10 7 9 8 9 3 107 DRINKING IN PUBLIC 0 0 0 0 0 1 0 0 0 0 0 0 1 DRIVING UNDER INFLUENCE 7 2 9 6 5 5 7 7 3 5 6 8 70 DRUG LAW VIOLATIONS 11 14 16 14 13 12 13 12 11 8 6 9 139 DWS/REVOKED- FELONY 1 0 0 0 0 0 0 0 0 1 0 0 2 DWS/REVOKED-MISDEMEANOR 1 2 0 4 4 1 3 1 2 2 0 2 22 ELUDE 4 7 1 1 1 3 3 0 2 1 0 0 23 EMBEZZLEMENT 0 0 0 1 0 0 1 0 0 0 0 0 2 ESCAPE FROM YOUR CUSTODY 1 0 0 0 0 0 0 0 0 0 1 0 2 EXTORTION/BLACKMAIL 0 0 0 0 0 0 0 0 1 0 0 0 1 FAIL TO DISPLAY OPERATORS LICENSE 0 1 2 0 0 1 0 1 1 0 0 0 6 FAILURE TO REGISTER AS SEX OFFENDER 0 1 0 0 0 0 0 0 1 2 0 0 4 FAMILY-OTHER 0 0 0 1 0 0 0 0 0 1 0 0 2 FORCIBLE RAPE 1 0 3 1 0 0 3 3 2 4 1 3 21 FORGERY/COUNTERFEITING 5 4 7 5 6 8 4 2 4 5 4 4 58 FRAUD-ACCOUNT CLOSED CHECK 2 0 0 0 2 1 0 0 0 0 0 0 5 FRAUD- BY DECEPTION/FALSE PRETENSES 3 3 3 5 3 2 2 3 7 2 3 2 38 FRAUD- CREDIT CARD/AUTOMATIC TELLER MACHINE 1 4 3 3 3 7 10 7 5 3 3 4 53 FRAUD- OF SERVICES/FALSE PRETENSES 1 3 0 2 0 2 0 0 1 0 3 0 12 FUGITIVE ARREST FOR ANOTHER AGENCY 30 22 31 32 29 22 24 24 23 28 24 25 314 FURNISHING 0 0 0 0 1 0 1 0 1 0 0 0 3 GARBAGE LITTERING 1 0 0 0 0 1 1 0 0 0 2 0 5 HIT AND RUN FELONY 1 1 0 2 0 1 0 1 1 1 2 2 12 HIT AND RUN-MISDEMEANOR 20 11 16 3 11 11 12 24 19 26 23 19 195 IDENTITY THEFT 5 6 4 7 6 7 10 5 8 2 5 3 68 INTIMIDATION /OTHER CRIMINAL THREAT 4 8 6 10 7 8 8 6 3 3 5 2 70 KIDNAP - FOR ADDITIONAL CRIMINAL PURPOSE 0 0 0 1 0 0 1 2 0 0 0 1 5 KIDNAP - HOSTAGE/SHIELD OR REMOVAL/DELAY WITNE 0 0 0 0 1 0 0 0 0 0 0 0 1 LIQUOR LAW-OTHER 0 0 0 0 0 0 1 0 0 0 0 0 1 MINOR IN POSSESSION 1 4 0 0 1 1 5 1 2 1 3 2 21 MINOR IN POSSESSION -TOBACCO 0 0 0 0 0 0 0 0 0 1 0 0 1 MISCELLANEOUS 15 11 10 10 22 14 16 11 14 14 11 19 167 MOTOR VEHICLE THEFT 18 14 15 7 17 9 9 7 7 15 21 8 147 NON CRIMINAL DOMESTIC DISTURBANCE 17 10 12 10 6 13 14 20 14 9 21 11 157 OTHER 8 5 7 6 2 1 5 1 5 5 7 6 58 PROPERTY- FOUND LOST MISLAID 2 2 1 1 0 5 2 1 1 5 2 1 23 PROPERTY RECOVER FOR OTHER AGENCY 1 1 0 0 2 2 0 0 2 0 1 0 9 PROSTITUTION - COMPEL 0 0 01 01 01 0 0 1 1 PUBLIC HEALTH AND SAFETY ORDINANCES 0 0 01 01 01 01 01 01 11 0 0 0 1 Page 1 of 3 9 1/17/2018 Woodburn Police Department MONTHLY CRIMINAL OFFENSES 2017 Year to Date Jan IFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total RECKLESS DRIVING 2 2 6 3 3 3 2 2 2 2 4 6 37 RESTRAINING ORDER VIOLATION 0 2 5 1 2 0 2 4 0 2 4 0 22 ROBBERY- BUSINESS 4 0 1 0 0 0 0 0 0 1 1 0 7 ROBBERY- CAR JACKING 0 0 0 0 0 0 0 0 0 1 0 0 1 ROBBERY- OTHER 1 1 1 1 3 1 2 2 0 0 11 1 1 ROBBERY- RESIDENCE 0 1 0 0 0 0 0 2 0 1 0 0 RUNAWAY 0 4 4 3 6 5 4 5 3 5 3 1 43 SEX CRIME - CONTRIBUTE TO SEX DELINQUENCY 1 0 0 0 1 1 0 1 1 0 0 1 6 SEX CRIME - EXPOSER 0 0 0 0 2 0 0 0 0 0 1 0 3 SEX CRIME - FORCIBLE SODOMY 1 0 2 0 0 0 0 0 0 0 0 2 SEX CRIME - INCEST 0 0 2 0 0 0 0 0 0 0 0 0 2 SEX CRIME - MOLEST (PHYSICAL) 2 2 5 3 4 0 4 2 0 0 1 6 29 SEX CRIME - NON FORCE SODOMY 0 0 0 0 0 0 0 1 0 0 0 0 1 SEX CRIME - NON-FORCE RAPE 1 0 0 1 1 0 1 2 2 0 4 2 1 SEX CRIME - OBSCENE PHONE CALL 1 0 0 0 0 0 0 0 0 0 0 0 1 SEX CRIME - OTHER 0 1 1 1 0 0 0 0 0 0 0 1 SEX CRIME - PORNOGRAPHY/OBSCENE MATERIAL 1 0 0 0 0 0 0 4 0 1 0 0 6 SEX CRIME - SEXUAL ASSAULT WITH AN OBJECT 0 1 1 0 0 0 0 0 0 0 0 1 3 STALKER 0 0 2 0 0 0 0 0 3 0 2 3 10 STOLEN PROPERTY- RECEIVING,BUYING,POSSESSING 4 1 0 0 0 2 2 0 1 0 0 1 11 SUICIDE 0 1 0 0 0 0 0 0 0 0 0 0 1 HEFT- BICYCLE 0 2 2 0 1 1 2 0 1 1 2 0 12 HEFT- BUILDING 7 10 7 5 11 6 4 2 3 4 7 4 70 HEFT- COIN OP MACHINE 1 0 0 0 1 0 0 0 0 0 1 1 HEFT- FROM MOTOR VEHICLE 9 9 16 17 9 10 10 5 16 11 16 231 151 HEFT- MOTOR VEHICLE PARTS/ACCESSORIES 1 1 0 0 1 1 1 1 2 0 2 0 10 HEFT- OTHER 20 15 8 25 24 22 20 26 18 21 18 27 244 HEFT- PICKPOCKET 0 0 0 1 0 2 0 0 1 0 0 2 6 HEFT- PURSE SNATCH 0 1 2 0 2 2 1 1 0 0 2 2 13 HEFT- SHOPLIFT 22 8 10 13 15 16 14 12 17 11 17 30 185 TRAFFIC VIOLATIONS 10 11 27 12 13 22 21 13 7 7 11 15 169 TRESPASS 6 6 7 7 8 5 5 7 12 5 5 11 8 UNAUTHORIZED ENTRY INTO MOTOR VEHICLE 4 2 6 14 10 10 9 9 7 8 19 9 107 UNLAWFULLY BEING WHERE MINORS CONGREGATE 0 2 0 0 0 0 0 0 0 0 0 0 2 VANDALISM 30 56 32 18 24 23 27 32 24 45 53 15 379 VEHICLE RECOVERD FOR OTHER AGENCY 3 2 5 2 0 1 0 2 0 1 3 1 20 WEAPON -CARRY CONCEALED 0 0 2 0 1 0 1 2 1 0 0 0 7 WEAPON - EX FELON IN POSSESSION 1 0 2 0 0 0 0 1 2 0 0 1 7 WEAPON - POSSESS ILLEGAL 3 6 1 2 1 5 0 5 2 4 2 2 33 WEAPON -SHOOTING IN PROHIBITED AREA 1 1.0E-0 1 1 1 2 0 1 0 1 9 [Jan]Feb I Mar I Apr May Jun I Jul lAug I Sep Oct I Nov I Dec Total 2017 Total 1 3561 3471 3771 339 357 3421 3571 3471 3281 3321 4001 362 4,244 2016 Total 1 3001 2511 3171 2741 3631 2731 3111 3281 3041 2611 3651 271 3,618 2015 Total 1 3571 2701 2711 3091 2901 3591 3271 2791 2581 2571 2231 333 3,533 Page 2 of 3 10 1/17/2018 Woodburn Police Department MONTHLY CRIMINAL OFFENSES 2017 Year to Date Offenses/Year 4500 4000 3500 N 3000 Z 2500 LL 2000 0 1500 :..7 000 500 0 . . 2015 2016 2017 YEAR Page 3 of 3 11 Woodburn Police Department ORDINANCE VIOLATIONS 2017 Year to Date 1/17/2018 Ordinance Discription Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Animal- Dog At Large 0 0 0 0 0 0 0 0 1 0 0 0 1 Animal Complaint 29 22 24 30 61 39 44 56 50 36 25 26 442 Ordiinance -Abate/Nuisances 0 0 1 0 1 3 1 3 2 0 1 0 12 Ordinance -Abandoned Vehicles 18 18 29 75 64 72 61 47 32 44 39 40 539 Ordinance -Abate Graffiti 13 26 15 14 8 11 3 11 19 16 20 7 163 Ordinance - Land Use Violations 0 0 3 1 3 1 2 0 0 0 0 0 10 Ordinance -Oth Violation 34 60 104 57 68 73 49 45 43 33 30 25 621 Ordinance -Tall Grass 0 0 0 0 85 85 15 8 1 0 0 0 194 2017 Total 94 126 176 177 290 284 175 170 148 129 115 98 1,982 2016 Total 122 159 131 106 239 200 181 159 103 93 88 81 1,662 2015 Total 125 125 149 120 250 185 162 141 97 93 99 101 1,647 Ordinance Violations / Code Enforcement Officers 1800 1600 1400 N 1200 Z O 1000 F 0 800 600 400 200 0 2015 2016 2017 COMBINED TOTAL-CODE ENFORCEMENT OFFICERS Ordinance Violations / Year 2000 1600 N ZO 1200 F 2 800 ... : 400 0 2015 2016 2017 YEAR TOTALS FOR ALL OFFICERS 1 12 �'I'1�r I Iii♦ r} Y 9M& Its BU January 22, 2018 TO: Honorable Mayor and City Council FROM: Jim Row, Assistant City Administrator SUBJECT: Solid Waste Franchise Ordinance RECOMMENDATION: Adopt the attached Solid Waste Franchise Ordinance with United Disposal Service, Inc. doing business as Republic Services of Marion County- Woodburn. BACKGROUND: The current Solid Waste Franchise Agreement with Republic Services was approved by the City Council on November 25, 2009 and went into effect on December 10, 2009. Staff began meeting with Republic Services during summer 2016 to negotiate a renewal of the franchise and to discuss the need to adjust rates, due to the fact that Marion County was implementing a 30% increase to disposal fees, effective October 1, 2016. After discussing the process with representatives from Republic Services, we decided to address the rate change prior to and separately from the franchise renewal. The rate change was a significant enough issue by itself, and we were concerned that the process would be further complicated by combining it with the franchise renewal. The new rate structure was negotiated with Republic and subsequently approved by the City Council on September 26, 2016. In order to provide for sufficient time to negotiate a new franchise agreement, on November 14, 2016, the City Council exercised its option to renew the franchise for one additional year. We intended to place the franchise renewal on the November 13, 2017 agenda, however, Republic Services requested additional time for their corporate office to review the working draft. Consequently, the City Council again extended the franchise, which now expires on February 25, 2018. The proposed franchise is effective February 26, 2018 and is for a term of seven (7) years. Agenda Item Review: City Administrator_X_ City Attorney_X_ Finance—X- 13 Honorable Mayor and City Council January 22, 2018 Page 2 DISCUSSION: The City's negotiations with Republic Services resulted in a handful of relatively minor changes to the ordinance that is before you tonight. Highlights from the draft franchise include: • Since United Disposal Service, Inc., doing business as Republic Services of Marion County- Woodburn, is the name of the corporate entity, the franchise must be granted to United Disposal. However, an extremely broad Transfer of Ownership or Control clause (Section 8) is included that provides that "the franchise shall not be sold, assigned, transferred, leased or disposed of either in whole or in part, in any manner" without the City Council having the right to again review the franchise. • The Term (Section 2.3) remains at seven years with an option for a one- year extension. • Republic Services closed all of their local customer service offices across the country earlier this year and now provides telephone based customer service from a national customer service center in Phoenix, Arizona. Inquiries from Woodburn customers that require a local response are forwarded to a representative in the Woodburn office for follow-up. As a result of this change, Section 3.15.4 was amended to remove the requirement that the Franchisee maintain a phone number to a local office. However, the Franchisee is still required to publish and maintain a local (non-long distance) phone number that customers can use to reach the customers service office. • Reasonable compensation to the Franchisee is addressed in Section 4 (Rates), as follows: "Franchisee shall have the right to charge and collect reasonable compensation from those whom it furnishes franchised services. The term "reasonable compensation" shall be defined at the discretion of the City after a study and consideration of rates for similar service under similar conditions in other areas, and as affected by local conditions in the local area." • As outlined in Section 3.8.5, Republic Services agrees to provide all City accounts with once weekly solid waste collection and disposal services at no charge. 14 Honorable Mayor and City Council January 22, 2018 Page 3 • In order to provide Republic Services with additional time to compile and disseminate operational and financial data, the deadline for Republic to submit their annual report to the City was changed from March 31 to April 30 of each year (Sections 3.16 and 3.17). • As outlined in Section 6.1 , an informal customer dispute resolution process provides a reasonable approach for initially managing disputes. • Section 6.2 (Penalties and Procedures) allows the City Administrator to levy penalties against the franchisee, which are appealable to the City Council. • Section 6.4 (City's Right to Revoke) allows the City to revoke the franchise for material breaches. A public hearing is required and any finding would have to be documented by findings of fact. Presumably, the finding would be appealable to Marion County Circuit Court on Writ of Review. • Section 3.1 .15, requires the Franchisee to accept multiple forms of payment from customers, including cash. The City and Republic Services engaged in a discussion about eliminating the requirement for the Franchisee to accept cash, but given how predominant cash payments are in Woodburn, the decision was made to continue requiring cash as an acceptable form of payment. It should also be noted that cash payments are currently accepted by other major city franchisees. FINANCIAL IMPACT: Republic Services pays a franchise fee equal to 5% of gross revenues to the City. This fee, which totaled $238,813 in FY 16/17, helps support general fund services. 15 COUNCIL BILL NO. 3055 ORDINANCE NO. 2552 AN ORDINANCE REGULATING SOLID WASTE MANAGEMENT INCLUDING, WITHOUT LIMITATION, GRANTING AN EXCLUSIVE SOLID WASTE FRANCHISE TO UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, dba REPUBLIC SERVICES OF MARION COUNTY - WOODBURN"; ESTABLISHING SERVICE STANDARDS AND ESTABLISHING PUBLIC RESPONSIBILITY; REPEALING ORDINANCE 1641; PRESCRIBING PENALTIES; AND STATING AN EFFECTIVE DATE. THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1 - Introduction 1.1 Short Title. This ordinance shall be known as the "Solid Waste Management Ordinance," and may be cited herein as "this Ordinance." 1.2 Purpose and Policy. In order to protect the health, safety and welfare of the people of the City of Woodburn, it is the public policy of the City of Woodburn to regulate and to provide a solid waste management program. 1.3 Solid Waste Management Goals. 1.3.1 Ensure the safe and sanitary accumulation, storage, collection, transportation and disposal or resource recovery of solid wastes. Ensure proper handling of household hazardous waste, ensure that the community has an ongoing resource recovery and disposal service, and ensure that waste shed recycling goals are met. 1.3.2 Promote technologically and economically feasible resource recovery including source separation, recycling and reuse, and separation by and through the collector. Research, develop and promote waste reduction strategies. 1.3.3 Ensure efficient, economical and comprehensive solid waste service. Maximize collection services to reduce the adverse environmental impacts of individual collection and disposal efforts. Minimize duplication of service or routes to conserve energy and material resources, to reduce air pollution and truck traffic, and to increase efficiency, thereby minimizing consumer cost, street wear, and public inconvenience. 1.3.4 Protect and enhance the public health and the environment. Council Bill No.3055 Ordinance No. 2552 Page 1 16 1.3.5 Protect against improper and dangerous handling of hazardous and infectious wastes. 1.3.6 Ensure service rates and charges that are just and reasonable and adequate to provide necessary public services. 1.3.7 Provide for charges to the users of solid waste services that are reasonable, equitable, and adequate to provide necessary service to the public, justify investment in solid waste management systems, and provide for equipment and systems modernization to meet environmental and community service requirements. 1.3.8 Prohibit discrimination on the basis of race, color, creed, religion, sex, age, and national origin, source of income, political affiliation, disability, sexual orientation, or marital status. 1.3.9 Work in cooperation with the City of Woodburn, Marion County, and local industries to reduce the quantity of waste produced, increase recycling, generate efficiencies, and conserve resources. 1.3.10 Demonstrate a responsive, customer-service oriented business philosophy. 1.4 Definitions. For the purpose of the ordinance, the following terms shall have the following meaning: "Applicable Law" means any applicable law (whether statutory or common), including ordinances, regulations, rules, governmental orders, governmental decrees, judicial judgments, and requirements of any kind and nature promulgated or issued by any governmental authority claiming or having jurisdiction. "Bin" means container provided by Franchisee, used by customers for the containment and disposal of recyclable material. "Can" means container owned by a customer, used for the containment and disposal of solid waste. The customer's use of a can requires manual collection. "Cart" means container provided by Franchisee, used by a customer for the containment and disposal of solid waste or recyclable material. The customer's use of a cart requires automated collection service. "City" means the City of Woodburn, Oregon, and the area within its Council Bill No.3055 Ordinance No. 2552 Page 2 17 boundaries including its boundaries as extended in the future and all property owned by the City, outside City limits. "City Administrator" means the City Administrator or his/her designee. "City Council" means the legislative body of the City. "Compact and Compaction" means the process of, or to engage in the shredding of material, or the manual or mechanical compression of material. "Compensation" means consideration of any kind paid for solid waste management services, including but not limited to, the direct payment of money, including the proceeds from resource recovery or the provision of solid waste services to customers. "Container" means can, cart, bin, drop box, receptacle, or other vessel used for the disposal of solid waste, recyclable material or yard waste that has been approved by the City Administrator and into which solid waste, recyclable material or yard debris may be placed for collection. "Dispose or Disposal" means the accumulation, storage, discarding, collection, removal, transportation, recycling or resource recovery of solid waste. "Drop Box" means a single container designed for storage and collection of large volumes of solid waste or wastes or recyclable materials, which is usually ten cubic yards or larger in size, and provides for transportation of large volumes of solid waste or recyclable materials and is transported to a disposal or processing site for transfer, landfilling, recycling, materials recovery or utilization and then emptied and returned to either its original location or to some other location. "Excluded Waste" means hazardous waste; household hazardous waste; infectious waste; toxic substances, wastes or pollutants; contaminants; pollutants; or radioactive wastes. "Franchisee" means UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, dba REPUBLIC SERVICES OF MARION COUNTY - WOODBURN" granted a franchise pursuant to Section 2 of this Ordinance or a subsequent ordinance. "Generator" means the person who produces solid waste or recyclable material to be placed, or that is placed for collection and disposal. As used Council Bill No.3055 Ordinance No. 2552 Page 3 18 in this Ordinance, "generator" does not include any person who manages an intermediate function resulting in the alteration or compaction of the solid waste or recyclable material after it has been produced by the generator and placed for collection. "Hazardous Waste" means, but is not limited to, any amount of waste listed or characterized as hazardous by the United States Environmental Protection Agency or any state agency pursuant to the Resource Conservation and Recovery Act, and including future amendments thereto, and any other Applicable Law including, but not limited to, any hazardous wastes as defined by ORS 466.005 "Holidays" means legal holidays observed by the City of Woodburn. "Household Hazardous Waste" means any discarded or unwanted chemical, material, substance or product that is or may be hazardous or toxic to the public or the environment, is commonly used around households and is generated by the household. "Infectious Waste" means biological waste, cultures and stocks, pathological waste, and sharps, or as infectious waste is defined in ORS 459.386. "Mixed Recycling" means the process where two or more types of recyclable materials are collected together (i.e., not separated) in a combination allowed by the City Administrator, and as approved by the Oregon Department of Environmental Quality. "Persons" means any individual, partnership, business, association, corporation, cooperative, trust, firm, estate, joint venture or other private entity or any public agency. "Pilot Program" means a program which allows Franchisee to offer services on a trial basis for six months or less and to determine rates for such services outside the approved rate structure. City Council approval is required prior to implementation of a pilot program. "Placed for Collection" means to put solid waste, recyclable material or yard debris out for collection by Franchisee, as provided by this Ordinance. "Public Place" means any City-owned park, place, facility or grounds within the City that is open to the public, but does not include a street or bridge. "Public Rights-of-Way" means, without limitation, streets, roads, highways, Council Bill No.3055 Ordinance No. 2552 Page 4 19 bridges, alleys, sidewalks, trails, paths, park strips and all other public ways or areas, including subsurface and air space over these areas. "Putrescible Material" means organic materials that can decompose, which may create foul-smelling, offensive odors or products. "Rate" means the amount approved by the City Council as a charge for service rendered and charged by Franchisee, including the franchise fee, to users of the service. "Recyclable Material" means any material or group of materials that can be collected and sold for recycling at a net cost equal to or less than the cost of collection and disposal of the same material and excludes excluded waste. "Recycling" means any process by which solid waste is transformed into new or different products in such a manner that the original products may lose their original identity. As used in this Ordinance, recycling includes the collection, transportation and storage of solid waste, done in order to place the solid waste in the stream of commerce for recycling; or for resource recovery. "Resource Recovery" means the process of obtaining useful material or energy resources from solid waste, including reuse, recycling, and other material recovery or energy recovery of or from solid wastes. "Service" means the collection, transportation, storage, transfer, or disposal of or resource recovery from solid waste by Franchisee. It also includes, without limitation, collection or source separated materials for compensation. "Service" includes the providing of "Special Service" as defined below. "Solid waste" means all useless or discarded putrescible and non- putrescible materials, including but not limited to garbage, rubbish, refuse, ashes, paper, cardboard, sewage sludge, septic tank and cesspool pumpings, or other sludge, useless or discarded commercial, industrial, demolition, and construction materials, discarded or abandoned vehicles or parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid and semi-solid wastes, and dead animals as defined in ORS 459.386. Solid waste does not include excluded waste. "Solid Waste Management" means the business of collection, transportation, storage, treatment, utilization, processing, disposal, Council Bill No.3055 Ordinance No. 2552 Page 5 20 recycling and resource recovery of solid waste. "Source Separation" means the separation of waste materials by the generator in preparation for recovery by recycling or reuse. "Special Service" means collection of bulky waste, including furniture, appliances and large quantities of waste. "Total Source Separation" means the complete separation by the source generator or producer of the waste by type or kind of waste from all other types or kinds of waste. "Train System" means a group of small containers (typically 1-2 cubic yard capacity) placed in various locations around a customer's property, by the customer and once full, either linked together or placed upon a trailer for transport and disposal to a larger container or compactor on the premises. "Waste" means any material that is no longer wanted by or is no longer usable by the generator, producer or source of the material,which material is to be disposed of or to be resource-recovered by another person. Even though materials which would otherwise come within the definition of "waste" may from time to time have value and thus be resource-recovered does not remove them from this definition. Source-separated wastes are "wastes" within this definition. "Yard Debris" means grass clippings, leaves, tree and shrub prunings of no greater than four inches in diameter, or similar yard and garden vegetation. Yard Debris does not include dirt, sod, stumps, logs or tree/shrub prunings larger than four inches in diameter. Section 2 - Grant of Authority and General Provisions 2.1 Franchise. Subject to the conditions and reservations contained in this ordinance, the City Council hereby grants to UNITED DISPOSAL SERVICE, INC. , AN OREGON CORPORATION, dba REPUBLIC SERVICES OF MARION COUNTY - WOODBURN"," the exclusive right, privilege, and franchise to collect, dispose, sell and transport solid waste and recyclable material generated as of the effective date of this ordinance within the corporate limits of the City of Woodburn and in any area that may thereafter be annexed to the City. 2.2 Exceptions. Unless accepted by subsections below, or granted an exclusive franchise pursuant to this Ordinance, no person shall solicit customers for service, or advertise the providing of service, or provide service in the City. Council Bill No.3055 Ordinance No. 2552 Page 6 21 Nothing in this ordinance requires a franchise for the following: 2.2.1 The collection, transportation and reuse of repairable or cleanable discards by a private charitable organization regularly engaged in such activity. 2.2.2 The collection, transportation, and reuse or recycling of totally source- separated materials or operation of a collection center for totally source- separated materials by a religious, charitable, benevolent or fraternal organization, provided the organization is using the activity for fund raising. Organizations engaged in these activities shall make periodic reports in a form as the City Administrator may reasonably require. 2.2.3 The collection, transportation or redemption of returnable beverage containers under ORS Chapter 459A and that portion commonly known as the "Bottle Bill." 2.2.4 The generator or producer who transports and disposes of waste created as an incidental part of regularly carrying on the business of auto wrecking to the extent licensed by the state of Oregon; janitorial service; septic tank pumping, sludge collection or disposal service; or gardening or landscape maintenance. "Janitorial service" does not include primarily collecting wastes generated by a property owner or occupant. 2.2.5 The transportation of solid waste by an individual, produced by such individual or the individual's household, to a disposal site or resource recovery site. In the case of non-owner-occupied property, the waste is produced and owned by the tenant and not by the landlord, property owner or agent. 2.2.6 A contractor registered under ORS Chapter 701 for hauling waste created in connection with the demolition, construction, or remodeling of a building structure or in connection with land clearing and development. Such waste shall be generated by the contractor in connection with the contractor's construction site and hauled in equipment owned by the contractor and operated by the contractor's employees. 2.2.7 Government employees providing solid waste and recycling collection services to City operations and facilities. 2.3 Term. (a)This franchise ordinance and the rights and privileges granted herein shall take effect February 26, 2018 and remain in effect for a term of seven (7) years. Council Bill No.3055 Ordinance No. 2552 Page 7 22 (b) Upon an affirmative finding based on its annual review of the material submitted pursuant to Sections 3.15 and 3.16, et. seq. of this agreement, at the end of the franchise term, the Council may add an additional year to the term of the franchise. (c) The City Council may choose to not extend a franchise after seven (7) years under this section for any reason. If the City Council chooses not to extend a franchise, at least sixty days before the date that the franchise would otherwise expire, the City Council shall provide Franchisee with written notice of the City Council's intent not to extend the franchise. Franchisee shall have thirty days from the date of the notice to request a public hearing. If, following the public hearing, the City Council reaffirms the decision not to extend the franchise term, the franchise shall expire at the end of its existing term, and shall not automatically be extended as provided in this section. Nothing in this subsection shall prevent a Franchisee from applying for a new franchise. (d) Prior to the issuance or extension of a franchise, the City Council shall provide notice and opportunity for public comment. (e) If the City Administrator determines service standards are not being met, the City Administrator may re-open this franchise for renegotiation. (f) The terms of the franchise must be unconditionally accepted by UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, d/b/a REPUBLIC SERVICES OF MARION COUNTY - WOODBURN" in writing, and signed by an officer of the corporation within 30 days after the date this ordinance is passed by the City. If UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, d/b/a REPUBLIC SERVICES OF MARION COUNTY - WOODBURN" fails to do so, this ordinance shall be void. 2.4 Ownership of Waste. Unless otherwise stated, solid waste properly placed out for collection is the property of the Franchisee. Ownership of, and liability for, excluded waste remains with the generator and will not pass to Franchisee. Nothing in the Ordinance shall be construed as giving rise to any inference that Franchisee has title to or liability for excluded waste. 2.5 Infectious Waste. Franchisee is not required to store, collect, transport, dispose of or resource infectious waste. 2.6 Hazardous Waste. Except as otherwise provided in this ordinance, Franchisee is not required to store, collect, transport, dispose of or resource recover hazardous waste or excluded waste. Council Bill No.3055 Ordinance No. 2552 Page 8 23 2.7 Separation of Waste. The City Council reserves the right to require the separation of component parts or materials in or from solid wastes, and to require the deposit thereof in containers or places and to prescribe the method of disposal or resource recovery. 2.8 City Authority. The City reserves the right to determine the services authorized by this franchise agreement. Section 3 - Community Standards for Collection and Disposal of Solid Waste and Recyclable Materials 3.1 Collection Standards. Collection of solid waste and recyclable material shall be performed in such a way as to comply with all Federal, State and local environmental regulations. In addition Franchisee shall: 3.1.1 Provide solid waste and recycling collection services to all persons living within or conducting business within the City limits of the City. 3.1.2 Collect putrescible material at least once each week. 3.1.3 Perform collections twice weekly in the business districts of the City, except Sundays and holidays. Downtown business district collection hours are 4:30 am to 6:30 am. Collection hours shall be scheduled to minimize noise and disruption to residents in or near the downtown business district. 3.1.4 Perform curbside collections of solid waste at least once weekly in residential districts or as often as required by ORS 459 and ORS 459.A. Collection hours shall be between the hours of 6:30 am and 5:30 pm, Monday through Friday. All collections shall be made as safely, efficiently and quietly as possible. 3.1.5 Perform curbside collections of recyclable materials at least bi-weekly or as often as required by ORS 459 and ORS 459.A. Collection of recyclable materials shall be made subject to the same requirements and within the same hours as those made for solid waste. 3.1.6 Provide collection of residential solid waste carts or cans, recyclable materials, and yard debris carts on the same day of the week. Franchisee shall not go into garages or other buildings to make pick-ups at residences, nor shall Franchisee go into closed areas, through enclosed gates, or up or down stairs to make pick-ups. 3.1.7 Provide will-call service for container service for residential and commercial customers within 48 hours of initial request for service. Council Bill No.3055 Ordinance No. 2552 Page 9 24 3.1.8 Use due care to prevent solid waste from being spilled or scattered during collection. If any solid waste or recyclable material is spilled during collection, Franchisee shall promptly clean up all spilled materials. All can/cart and container lids must be replaced after contents are emptied and the can/cart or container shall be returned to its original position so as to not jeopardize the safety of motorist, pedestrians or bicyclists. Franchisee shall also collect any solid waste or recyclable materials that may have been spilled or scattered prior to collection, in the immediate area of cans and carts. 3.1.9 Use reasonable care in handling all collection containers and enclosures. Damage caused by the negligence of Franchisee's employees to private property, including landscaping, is the responsibility of Franchisee and shall be promptly adjusted with the owner. 3.1.10 Ensure that all solid waste and recycling collection operations shall be conducted as quietly as possible and shall conform to applicable Federal, State, County and City noise emission standards. Unnecessarily noisy trucks or equipment are prohibited. The City Administrator may conduct random checks of noise emission levels to ensure such compliance. 3.1.11 Determine, with approval of the City Administrator, the maximum allowable capacity of cans, carts or containers. If Franchisee refuses to service an overweight can, cart or container, a notice describing the problem must be provided. The notice shall include the name of Franchisee, employee, alternative solutions to resolve the problem and a local phone number for additional information. Franchisee must provide double the customer's subscribed service level at no additional charge on the customer's next scheduled collection day, if a special pick-up has not been requested in the meanwhile. If a special pick-up has been requested, Franchisee may charge the normal will-call rate. 3.1.12 Refuse specific residential collections, if access to a can, cart or container, is blocked by a vehicle. For purposed of this section, "blocked" shall be defined as parked immediately in front of, or at the curb within ten feet to either side of such containers. If Franchisee refuses to service a can, cart or container for this reason, a notice describing the problem must be provided. The notice shall include the name of Franchisee, employee, reason for collection refusal, solution for resolving the problem and a local phone number for additional information. Franchisee must provide double the customer's subscribed service level at no additional charge on the customer's next scheduled collection day, if a special pick-up has not been requested in the meanwhile. If a special pick-up has been requested, Franchisee may charge the normal will-call rate. Council Bill No.3055 Ordinance No. 2552 Page 10 25 3.1.13 Offer unlimited vacation credits to customers who temporarily discontinue service in a calendar year for any period of two (2) weeks or more. The customer must request the discontinuance no later than noon on the business day, excluding weekends, prior to the date of discontinuance. 3.1.14 Notify, in the event of permanent changes to the collection schedule, all affected customers within fourteen (14) calendar days of any change. Franchisee shall not permit any customer to go more than seven (7) calendar days without service in connection with a collection schedule change. 3.1.15 Have the option to limit acceptable methods of payment. Franchise must, however, at a minimum, accept cash, personal checks, cashiers checks, money orders, and bank drafts, and provide for online payment with a credit card. 3.1.16 Have the option to refuse collection service upon non-payment of a billing or portion of a billing after account becomes 45 days past due, or upon refusal to pay required advance payments, delinquent charges, or charges associated with starting a new service. Franchisee may withhold collection services, providing at least a ten (10) day notice is given to subscriber. 3.1.17 Continue collection services except in situations beyond Franchisee's control, including street or road blockages, riots, terrorist attacks, compliance with applicable laws or governmental orders, inclement weather conditions, fires, floods, or other natural or man-made disasters. Adverse labor relations issues such as strikes orwalk-outs shall be considered to be within the control of the franchisee and shall not prevent collection and disposal services as required by this ordinance. 3.1.18 Franchisee shall dispose of solid waste in the nearest disposal site permitted by the Oregon Department of Environmental Quality unless extraordinary circumstances apply. City Council reserves the right to approve any disposal site used by Franchisee. 3.2. Preventing Interruption of Service. In the event of an immediate and serious danger to the public creating a health hazard or serious public nuisance, the City Administrator may, after a minimum of 24 hours notice to Franchisee, authorize another person to temporarily provide emergency service under this ordinance or the City may elect to provide such service. Upon request of Franchisee, a public hearing shall be provided before the City Council and the decision to provide temporary service shall be reconsidered. Franchisee agrees as a condition to this franchise that any equipment used for the services provided under this franchise may be used to provide such Council Bill No.3055 Ordinance No. 2552 Page 11 26 emergency service. The City shall return any such property of Franchisee upon abatement of the health or nuisance hazards created by the general interruption of service. In the event the power under this section is exercised, the usual charges for service shall prevail and Franchisee shall be entitled to collect for such usual services, but shall reimburse the City for its actual costs, as determined by the City. 3.3 Recycling Standards. Recycling services shall include the following: 3.3.1 For residential customers with regular weekly solid waste service, provide on-route residential recycling service including one 65-gallon (1 ) roll cart, one (1 ) recycle bin and one (1 ) yard debris cart or composter at no additional charge. Customers may, at their option, upgrade to a 95 gallon roll cart at no additional cost. Additional carts and bins for recycling shall be provided upon request at a cost not greater than the actual cost incurred by Franchisee. 3.3.2 For customers in single-family households, the following material at a minimum shall be picked up curbside once every other week on a designated collection day: newspapers, corrugated cardboard, brown paper bags, mixed paper consisting of household mail, paperboard, and magazines, glass bottles and jars, aluminum and tin, plastics, and aerosol cans. Batteries, oil, and latex paint shall also be collected every otherweek, but shall be segregated from other recyclable materials in a bin provided by the Franchisee for that purpose. 3.3.3 For apartments and other multi-family households and units requesting such service, the following material at a minimum shall be collected once each week on a designated collection day: newspapers, corrugated cardboard, brown paper bags, mixed paper consisting of household mail, paperboard, and magazines; and glass bottles and jars, aluminum and tin, plastics, and aerosol cans. Batteries, oil and latex paint shall also be collected weekly, but shall be segregated from other recyclable materials in a bin provided by the Franchisee for that purpose. Materials shall be collected curbside or in a designated collection center in cooperation with the building owner or manager. 3.3.4 Yard debris carts for residential customers shall be picked up weekly on the same day as solid waste collection. Yard debris must be disposed at a compost/mulch facility registered with the Oregon Department of Environmental Quality. 3.3.5 Recycling-only customers shall be offered bins and be provided bi- weekly recycling service at a rate established by the City Council. 3.3.6 Commercial recycling service includes carts, recycle bins, and cardboard recycling containers and shall be provided at no additional charge. Council Bill No.3055 Ordinance No. 2552 Page 12 27 3.3.7 For commercial customers, the following recyclable material, at a minimum, shall be collected once each week on a designated collection day: office paper and mail, corrugated cardboard, newspapers, paperboard, magazines, brown paper bags, wood, glass bottles and jars, aluminum and tin, plastic, and aerosol cans. Batteries, oil, and latex paint shall also be collected weekly, but shall be segregated from other recyclable materials in a bin provided by the Franchisee for that purpose. 3.3.8 For large quantities of cardboard, the frequency of pickup-service shall be determined by agreement between the generator and the collector. Agreements shall give due consideration to the volume of the material, storage capacity of generator, and generator's location. 3.3.9 Franchisee must provide notice to customer if recyclable material placed at curbside is not collected due to improper preparation. Notice must include adequate explanation of refusal for collection, name of employee and local phone number for additional information. Franchisee shall leave notice securely attached to the customer's bin or the customer's front door. Employee shall collect any properly prepared material that is accessible. The purpose of the notice is to educate residents and increase program participation, and shall be written in such a manner as to accomplish this purpose. 3.3.10 Operate and maintain at least one (1 ) collection center within the City limits that permits residents to deliver recyclables to the site. Collection center shall be open to the public between the hours of 8 am to 5 pm Monday through Friday, and 8 am to Noon on Saturdays. Said site shall accommodate at a minimum all recyclable materials collected at curbside, as well as scrap metal and other types of glass and plastic. Materials such as Styrofoam, textiles, and electronics shall be recycled when it is technologically or economically feasible to do so. 3.3.11 Facilitate a reuse program referring useable items to local thrift shops, resale shops, non-profit groups or others who may have a legitimate use for the item. Maintain a list of businesses and groups that submit requests for needed items, and provide this information to others as requested. 3.3.12 Research and develop improved recycling and reuse systems. 3.4 Public Education. Franchisee shall provide the following public education and promotion of activities for waste reduction, recycling, reuse, and source separation, and cooperate with other persons, companies, or local governments providing similar services. Franchisee shall: Council Bill No.3055 Ordinance No. 2552 Page 13 28 3.4.1 Provide a recycling information center within City limits, with local telephone access and information concerning collection schedules, recycling locations, recyclable material preparation, conservation measures, reuse programs, waste reduction strategies and on-site demonstration projects. Recycling information booths at appropriate community events shall also be provided by Franchisee to promote and increase recycling awareness and participation. 3.4.2 Provide recycling notification and educational packets for all new residential, commercial, and industrial collection service customers specifying the collection schedule, materials collected, proper material preparation, reuse programs, waste reduction strategies and recycling benefits. 3.4.3 Provide semi-annual informational/promotional pamphlets to residences and businesses in the City that include the materials collected and the schedule for collection. Information about waste reduction, reuse opportunities, proper handling and disposal of special wastes (household hazardous wastes) and the reduction of junk mail shall be included on a regular basis. Special community solid waste events, and the holiday tree removal program shall also be promoted when appropriate. Informational/promotional pamphlets shall be distributed to all mailing addresses within the City. 3.4.4 Maintain a website that allows customers to access information regarding franchised solid waste and recycling services and applicable rates charged for such services. 3.4.5 Perform waste audits for those commercial and industrial customers requesting one, and conduct, at least annually, workshops on waste reduction strategies and reuse opportunities. 3.4.6 Coordinate with the Woodburn School district and local private schools to assist in promoting awareness of recycling and waste reduction strategies to children, and to cooperate with the district in their recycling efforts and programs. 3.4.7 Promote solid waste reduction and recycling education through local widespread media and educational outreach, no less than 18 times each year. Promotional information shall focus on recycling, reuse and waste reduction strategies. 3.4.8 Provide the City Administrator with sufficient copies of all promotional fliers and other related information as requested. 3.4.9 Conduct a bi-annual survey to evaluate customer participation in Council Bill No.3055 Ordinance No. 2552 Page 14 29 recycling programs and customer opinion of solid waste and recycling services offered by Franchisee. Statistics shall be used to enhance existing recycling educational materials and increase program participation. Significant statistical changes in the survey shall afford the City Administrator the option to renegotiate Section 3 of this agreement. 3.5 Resource Recovery Services. 3.5.1 Aggressively seek markets for reusable, recyclable, and recoverable materials and purchase such materials from others. 3.5.2 Develop strategies to promote the reduction of solid waste generated by residential, commercial and industrial customers. Promote programs preventing or reducing at the source those materials which would otherwise constitute solid waste. 3.6 County Waste shed. Coordinate recycling efforts with other solid waste collection efforts in the Marion County Waste shed to further enhance recycling and recovery, efforts, and to meet waste shed recovery goals as mandated by the state. 3.7 Additional Recycling Requirements. 3.7.1 The City Administrator reserves the right to require specific materials to be separated, collected and recycled. 3.7.2 Franchisee shall provide other recycling services as required by Oregon Revised Statute 459.A, City Council, ordinance, or municipal code. 3.7.3 Franchisee shall recycle additional materials when economically feasible and provide for an on-site collection center for household hazardous waste. 3.8 Community Service Standards. 3.8.1 Franchisee shall provide for storm debris collection of tree limbs, leaves, etc., on an as needed basis. Franchisee may charge a fee for such disposal. 3.8.2 Franchisee shall provide an annual residential cleanup, collecting scrap and recyclable material, yard debris and appliances, at no additional charge; however, Franchisee may charge, as a pass-through cost, the CFC evacuation fee on appliances. Council Bill No.3055 Ordinance No. 2552 Page 15 30 3.8.3 Franchisee shall provide collection and recycling of holiday trees placed at curbside for a period of three (3) weeks, beginning December 26th of each year, at no additional charge. 3.8.4 Franchisee shall provide twice weekly solid waste collection and disposal service of public litter containers, in the central business district of the City, including the Woodburn Downtown Plaza, except holidays. 3.8.5 Franchisee shall provide once weekly solid waste collection and disposal service for all City accounts at no charge to the City: 3.9 Additional Services. Where a new service or a substantial expansion of an existing service is proposed by the City Administrator, another person or Franchisee, the following shall apply: 3.9.1 If service is proposed by the City Administrator, Franchisee shall receive prior written notice of the proposed service and justification by the City Administrator. If service is proposed by Franchisee or another person, the City Administrator must be notified in writing prior to any consideration by the City. 3.9.2 The City may hold a public hearing on the proposed service and justification. 3.9.3 In determining whether the service is needed, the City shall consider the public need for the service, the effect on rates for service and the impact on other services being provided or planned, the impact on any city, county or regional solid waste management plan, and compliance with any applicable statutes, ordinances or regulations. 3.9.4 If the City determines the service is needed, Franchisee shall have the option to provide the service on a temporary basis through a pilot program to determine if the service is functional on a permanent basis or Franchisee may agree to provide the service on a permanent basis within a specified time. 3.9.5 If Franchisee rejects the service, the City may issue a franchise or permit to another person to provide only that service. The provider of the limited service shall comply with all applicable provisions of this ordinance. 3.10 Special Service. 3.10.1 If a customer requires an unusual service requiring added or specialized equipment solely to provide that service, Franchisee may require a contract with the customer to finance and assure amortization of such Council Bill No.3055 Ordinance No. 2552 Page 16 31 equipment. The purpose of this subsection is to assure that such excess or specialized equipment does not become a charge against other ratepayers. 3.11 Sub-Contract. Franchisee may sub-contract with other persons to provide specialized or temporary service covered by this franchise, but shall remain totally responsible for compliance with this agreement. Franchisee shall provide written notice of intent to sub-contract services prior to entering into agreements. If sub-contracting involves a material portion of the franchised service, Franchisee shall seek the approval of the City. 3.12 Equipment and Facility Standards. 3.12.1 All equipment shall be kept well painted, and properly maintained in good condition. Vehicles and containers used to transport solid waste shall be kept clean to ensure no contamination to the environment or the City's storm water system. 3.12.2 All vehicles and other equipment shall be stored in a safe and secure facility in accordance with applicable zoning and environmental regulations. 3.12.3 Trucks shall be equipped with a leak proof metal body of the compactor type including front, rear, or automatic loading capabilities. 3.12.4 Pick-up trucks, open bed trucks or specially designed, motorized local collection vehicles used for the transporting of solid waste must have a leak proof metal body and an adequate cover over the container portion to prevent scattering of the load. 3.12.5 All fuel, oil, or vehicle fluid leaks or spills which result from Franchisee's vehicles must be cleaned up immediately. All vehicles must carry an acceptable absorbent material for use in the event of leaks or spills. Damages caused by fuel, oil, or other vehicle fluid leaks or spills from Franchisee's vehicles or equipment shall be at Franchisee's expense. 3.12.6 All vehicles used by Franchisee in providing solid waste and recycling collection services shall be registered with the Oregon Department of Motor Vehicles and shall meet or exceed all legal operating standards. In addition, the name of Franchisee, local telephone number and vehicle identification number shall be prominently displayed on all vehicles. 3.12.7 All collection vehicles shall not exceed safe loading requirements or maximum load limits as determined by the Oregon Department of Transportation. Franchisee shall endeavor to purchase and operate equipment that minimizes damage to City streets. Council Bill No.3055 Ordinance No. 2552 Page 17 32 3.12.8 Franchisee shall provide and maintain equipment that meets all applicable laws, ordinances, municipal codes, and regulations or as directed by the City Administrator. 3.12.9 Franchisee shall provide and replace as necessary, garbage collection carts, yard debris carts, and recycle bins at no charge to the public. Cart sizes offered for solid waste disposal include 20, 32, 65, and 90 gallon capacity. Yard debris carts shall be 90 gallon capacity. Recycle carts may be either 65 or 95 gallon capacity, depending on customer choice. Solid waste, yard debris, and recycling carts shall be leak-proof, rigid, , and of rodent proof construction and not subject to cracking or splitting. The City Administrator has the right to approve all containers provided by Franchisee for use in the City and may require additional or alternative container sizes. Customers may, at their election, change their cart size once each calendar year at no cost. For each subsequent change within the same calendar year, Franchisee may charge a fee, to recover the administrative costs of such change, as approved by the City Council. 3.12.10 Franchisee shall clean containers used by commercial customers once annually if requested by customer for no additional charge. If Franchisee determines such containers are becoming a health hazard, requiring more frequent cleaning, such service shall be an additional maintenance charge to the waste producer or generator. 3.12.11 In cooperation with the Woodburn Police Department, Franchisee shall remove graffiti from all containers or facilities within ten business days of the time Franchisee is notified of such need. Notification may be verbal, or in writing. 3.12.12 All surface areas around Franchisee's site facilities including vehicle and equipment storage areas, service shops, wash stations, transfer sites, collection centers, and administrative offices must be kept clean to eliminate direct site run-off into the City's storm water and open drainage system. 3.13 Safety Standards. Franchisee shall operate within guidelines of the Oregon Refuse and Recycling Association, Oregon Department of Transportation, Oregon Public Utility Commission, Oregon Occupational Health and Safety Administration, Department of Environmental Quality, Woodburn Municipal Code and all other rules and regulations as they apply. 3.13.1 Franchisee shall provide suitable operational and safety training for all of its employees who maintain, use, or operate vehicles, equipment, or facilities for collection of waste or who are otherwise directly involved in such collection. Employees involved in collection services shall be trained to identify, and not to Council Bill No.3055 Ordinance No. 2552 Page 18 33 collect, excluded waste. Employees who do handle such excluded waste shall be properly trained. 3.14 Right-of-Way Standards. Franchisee shall ensure proper and safe use of public right-of-ways and provide compensation to the City in consideration of the grant of authority to operate a solid waste collection and disposal system in the City of Woodburn as directed in this franchise agreement. 3.15 Customer Service Standards. Franchisee shall: 3.15.1 Provide sufficient collection vehicles, carts, bins, containers, drop boxes, facilities, personnel and finances to provide the services set forth in this franchise agreement. 3.15.2 Sufficiently staff, operate and maintain a business office and operations facility within the City. 3.15.3 Establish minimum office hours of 8:00 am through 5:00 pm, Monday through Friday, not including holidays. 3.15.4 Ensure a responsive, customer service oriented business. Provide customers with a local telephone number, listed in a local directory, to a business office. Adequately staff operations to provide prompt response to customer service requests or inquiries and respond promptly and effectively to any complaint regarding service. Calls received by 1 :00 pm by office staff shall be returned the same business day as call received, and by noon of the following business day if call is received after 1 :00 pm. Franchisee shall promptly respond to all written complaints about service or rates. 3.15.5 Train collection crews prior to their beginning solid waste and recycling collection, and office staff prior to having public contact. The scope of the training shall include, but is not limited to, acceptable safety practices, acceptable standards of service to the public, courteous customer service, and accuracy and completeness of information 3.15.6 Require all employees of Franchisee and all employees of persons under contract with Franchisee under this franchise agreement to present a neat appearance and conduct themselves in a courteous manner. Franchisee shall require its drivers and all other employees who come into contact with the public, to wear suitable and acceptable attire that identifies Franchisee. 3.15.7 Designate at least one (1 ) qualified employee as supervisor of field operations. The supervisor shall devote an adequate portion of his/her workday in the field checking on collection operations, including responding to issues. Council Bill No.3055 Ordinance No. 2552 Page 19 34 3.16 Annual Customer Service Reporting Standards. Franchisee shall provide annual reports to the City Administrator by April 30th of each year during the term of the franchise. 3.16.1 Reports shall include a written log of all oral and written complaints or service issues registered with Franchisee from customers within the City. Franchisee shall record the name and address of complainant, date and time of issue, nature of issue, and nature and date of resolution. The City Administrator may require more immediate reports documenting complaints and resolutions. 3.16.2 Provide a summary of educational and promotional activities as required in Sub-section 3.4. 3.17 Annual Financial Reporting Standards. Franchisee shall keep current, accurate records of account. The City may inspect the Records any time during business hours and may audit the Records from time to time. If an audit of the Records is required, the cost of an independent audit, reasonably satisfactory to the City, shall be the responsibility of franchisee. Franchisee shall submit to the City Administrator a report annually, no later than April 30th of each year, documenting the activities and achievements of all programs undertaken pursuant to this franchise for the previous year. The City Administrator shall evaluate the effectiveness of the programs in terms of the amount, level, and quality of the services provided by Franchisee. The report shall include the following specified information: 3.17.1 Total franchise payments remitted and basis for calculations; 3.17.2 Year-end financial statements of Franchisee for service within the City limits only, including: Summary of financial highlights Statement of income and retained earnings Balance sheet Statement of changes in financial position Schedule of expenses 3.17.3 Annual recycling data form as submitted to the Marion County Environmental Services Division. 3.17.4 Current and previous year total of residential, commercial and industrial customers within City limits, including tons of solid waste generated. Number of recycling customers within City limits and percentage of materials recycled. Council Bill No.3055 Ordinance No. 2552 Page 20 35 3.17.5 A summary of the customer survey as required in Sub-section 3.4.9 and a summary of the annual customer service reports as required in Sub-section 3.16. 3.17.6 Document industry trends and direction of Franchisee over the next several years. 3.17.7 Provide a summary of Community Involvement activities as required in Section 3. 3.17.8 Other information pertaining to performance standards specified in the franchise agreement. Section 4 - Rates 4.1 Rate Structure. The City Council reserves the right to examine the rate structure of Franchisee, and to require specific services and approve rate changes which, in the discretion of the City Council, are reasonably required in view of the following considerations: 4.1.1 Franchisee shall have the right to charge and collect reasonable compensation from those whom it furnishes franchised services. The term "reasonable compensation" shall be defined at the discretion of the City after a study and consideration of rates for similar service under similar conditions in other areas, and as affected by local conditions in the local area. However, nothing in this section prohibits Franchisee from volunteering services at a reduced cost for a civic, community, benevolent or charitable program. Cash or in-kind contributions to such organizations shall be the sole responsibility of Franchisee and shall not be a factor in determining rates or increase the total amounts paid by ratepayers for which Franchisee serves under this agreement and shall not reduce the total amount of revenue paid to the City. Contributions shall not be taken into consideration in the rate approval process. 4.1.2 Franchisee shall provide to the City Administrator a copy of the published rate schedule which shall contain the rates and charges made for all its operations. The rate schedule shall be kept current. Franchisee shall file with the City Administrator, at least 90 days prior to any contemplated change, a complete, new and revised rate schedule which shall be examined by Council in a public hearing, subject to applicable notice requirements and affording due process. Franchisee shall also provide documented evidence of actual or projected increased operating costs within City limits which may justify proposed increases. Council may approve or deny any request based on criteria consisting of, but not limited to: increases in operating or capital costs, increases in taxes, Council Bill No.3055 Ordinance No. 2552 Page 21 36 fees, and other governmental assessments, increases in City population; extension of City boundaries; increase of intensive residential, commercial or industrial development within the City; changes in solid waste or recycling technology; changes in regulatory requirements; inability of Franchisee to adequately handle increased needs for said service; the rates in other cities for similar services; and the public interest by assuring reasonable rates to enable Franchisee to provide efficient and beneficial service to users of the service. The request shall be considered denied unless approved by Council prior to 30 days before the effective date. In the event of denial, the current rate schedule remains in effect and Franchisee may file with the Council further information to justify the rate schedule changes. 4.1.2.1 Rates established by Council are fixed rates and Franchisee shall not charge more or less than the fixed rate unless changed pursuant to Section 4. Franchisee shall not charge rates not in the rate schedule. 4.1.2.2 Rates for a given service must be established under the provisions of these guidelines before such service can be provided to customers unless services are being offered under a pilot program. If the City Administrator determines Franchisee is providing services for a fee without following these guidelines, the City Administrator may require Franchisee to continue providing such services at no charge to the customer until such time as the rates are approved as described under Section 4. If rates are not subsequently approved, Franchisee may discontinue service and shall take full responsibility in explaining to customers as to why the service is no longer being provided. 4.1.3 Franchisee may not give any rate preference to any person, locality, or type of solid waste collected, transported, stored, disposed of or resource recovered. This section shall not prohibit uniform classes of rates based on length of haul, time of haul, type or quantity of solid waste handled, and location of customers, so long as such rates are reasonably based on the cost of service and approved by City Council in the same manner as other rates. 4.1.4 The rates shall be subject to review and change only one (1 ) time in a calendar year, beginning January 1 and ending December 31 ; provided: 4.1.4.1 The City Council may at its sole discretion and with appropriate documentation submitted by Franchisee, grant an interim or emergency rate for changes in service, including pilot programs. 4.1.4.2 An additional application for a rate adjustment may be made when the cost of collection is increased by governmental regulations, or there is a single large increase in cost not anticipated at the last rate adjustment. Council Bill No.3055 Ordinance No. 2552 Page 22 37 4.1.5 The approved rate schedule (Exhibit 1 ), as of the effective date of this ordinance, shall be deemed to be in effect. Section 5 - Financial 5.1 Compensation. In consideration of the rights and privileges granted by this ordinance, Franchisee shall pay to the City of Woodburn, five percent (5%) per annum of its gross receipts derived from all services within the City and from the sale of recyclable material collected within the City. Franchisee shall also pay five percent (5%) per annum of the gross receipts derived from franchised services within the City, as defined in this ordinance, earned by subcontractors of Franchisee within the City for services rendered pursuant to this franchise agreement. 5.1.1 Gross receipts of Franchisee shall mean revenues derived by Contractor within the City pursuant to this franchise agreement, net of discounts and uncollectables. 5.1.2 No expenses, encumbrances, or expenditures shall be deducted from the gross revenue in determining the total gross revenue subject to the franchise fee, except net uncollectables. 5.1.3 The compensation required in this section shall be due quarterly, on or before the 30th day of the month following last business day of every quarter. Franchisee shall furnish with each payment a notarized statement, executed by an officer of Franchisee, showing the amount of gross receipts of Franchisee within the City for the period covered by the payment computed on the basis as determined by Sub-section 5.1 , Compensation. If Franchisee fails to pay the entire amount of compensation due to the City through error or otherwise within the time allotted for, the unpaid balance shall be subject to a late penalty of an additional ten percent (10%), plus interest of two percent (2%) per month on the amount of fee due and unpaid from the date due until it is paid together with the late penalty. 5.1.4 If Franchisee is prohibited by state or federal law from paying a fee based on gross receipts or the City is prohibited by state or federal law from collecting such a fee, or if any legislation reduces the actual or projected amount of compensation collected in any given year, the City Administrator may renegotiate the compensation section of this franchise agreement. 5.1.5 Franchisee shall not separately identify its franchise fee on billing statements to customers unless it separately identifies all costs which constitute five percent (5%) or more of the costs paid by the revenues received from Council Bill No.3055 Ordinance No. 2552 Page 23 38 customers. 5.1.6 Nothing contained in this franchise shall give Franchisee any credit against any ad valorem property tax levied against real or personal property within the City, or against any local improvement assessment or any business tax imposed on Franchisee, or against any charges imposed upon Franchisee including permit and inspections fees or reimbursement or indemnity paid to the City. 5.2 Insurance. Franchisee shall pay, save harmless, protect, defend and indemnify the City from any loss or claim against the City on account of, or in connection with, any activity of Franchisee in the operation or maintenance of its facilities and services except those that arise out of the sole negligence of the City. Franchisee shall, for the purposes of carrying out the provisions of this agreement, have in full force and effect, and file evidence with the City Administrator the following requirements: 5.2.1 Workers' Compensation insurance as required by Oregon Law, including Employers Liability Coverage. 5.2.2 Commercial General Liability insurance as broad as Insurance Services Office (ISO) form CG 00 01, providing Bodily Injury, Property Damage and Personal Injury on an occurrence basis with the following as minimum acceptable limits: Bodily Injury and Property Damage - Each Occurrence $2,000,000 Personal Injury - Each Occurrence $2,000,000 Products & Completed Operations - Aggregate $3,000,000 General Aggregate $3,000,000 5.2.3 Business Automobile Liability as broad as Insurance Services Office (ISO) form CA 00 01, providing bodily injury and property damage coverage for all owned, non-owned and hired vehicles, with the following as minimum acceptable limits: Bodily Injury and Property Damage - Each Occurrence $1 ,000,000 5.2.4 Franchisee shall furnish the City Administrator with Certificates of Insurance and with original endorsements for each insurance policy (if needed). All certificates and endorsements are to be received and approved by the City Administrator before the effective date of this ordinance. The Commercial General Liability Policy shall name the City of Woodburn, its officers, officials, Council Bill No.3055 Ordinance No. 2552 Page 24 39 employees and agents as Additional Insureds as respects to operations performed under this franchise agreement via blanket form endorsement. Franchisee shall be financially responsible for all pertinent deductibles, self-insured retentions and/or self insurance. 5.2.5 Franchisee shall notify the City at least 30 days prior to cancelling any insurance policy covered under Section 5. 5.3 Hold Harmless. The Franchisee agrees to indemnify, defend and hold harmless the City, its officers, employees, volunteers and agents from any and all claims, demands, action, or suits arising out of or in connection with the City Council's grant of this franchise. Franchisee shall be responsible to defend any suit or action brought by any person challenging the lawfulness of this franchise or seeking damages as a result of or arising in connection with its grant; and shall likewise be responsible for full satisfaction of any judgment or settlement entered against the City in any such action. The City shall tender the defense to the Franchisee , and Franchisee shall accept the tender whereupon the City shall assign to Franchisee, complete responsibility of litigation including choice of attorneys, strategy and any settlement. 5.3.1 Franchisee's costs incurred in satisfying its obligations as defined in 5.3 above, shall not decrease the total amount of compensation paid to the City and shall not increase the total amounts paid by the ratepayers for which Franchisee serves under the authority of the franchise agreement. All such expenses shall be the sole responsibility and burden of Franchisee. 5.3.2 Damages. Damages and penalties under this Section 5.3 include, but shall not be limited to, damages arising out of personal injury, property damage, copyright infringement, defamation, theft, and fire. Section 6 - Administration and Enforcement 6.1 Customer Dispute Resolution Process. 6.1.1 Any citizen of Woodburn who is aggrieved or adversely affected by any application of the franchise or policy of Franchisee shall first attempt to settle the dispute by notifying Franchisee of the nature of the dispute and affording Franchisee the opportunity to resolve the dispute. 6.1.2 If the dispute is unresolved, the citizen may contact the City Administrator. The City Administrator may require a written description of the dispute from either party, and shall attempt to mediate and resolve the grievance with the citizen and Franchisee. Council Bill No.3055 Ordinance No. 2552 Page 25 40 6.1.3 If the dispute is still unresolved, the citizen or Franchisee may appeal to the City Council who shall hear the dispute. The decision of the City Council shall be final and binding. 6.2 Penalties and Procedures. Subject to the requirement of prior notice as set forth in Section 6.3 below, for violations of this ordinance occurring without just cause, the City Administrator may assess penalties against Franchisee as follows: 6.2.1 For failure to adhere to material provisions of this franchise, as defined in Section 6.4.1 , Two Hundred Fifty Dollars ($250.00) per day for each provision not fulfilled. 6.2.2 For failure to comply with Oregon Occupational Safety and Health Administration and Oregon Department of Transportation safety requirements or Oregon Department of Environmental Quality rules and regulations, the penalty shall be Two Hundred Fifty Dollars ($250.00) per day, per occurrence. 6.2.3 For failure to comply with any provision of this franchise, for which a penalty is not otherwise specifically provided, the penalty shall be One Hundred Twenty Five Dollars ($125.00) per day, per occurrence. 6.2.4 Forfailure to complywith reasonable requests of the City Administrator related to service, the penalty shall be One hundred Dollars ($100.00) per day per request. 6.3 Procedure for Imposition of Penalties. 6.3.1 Whenever the City Administrator finds that Franchisee has violated one (1 ) or more terms, conditions or provisions of this franchise, a written notice, or a verbal notice followed by a written notice, shall be given to Franchisee informing it of such violation or liability. If the violation concerns requirements mandated by the Oregon Occupational Health and Safety Administration or the Oregon Department of Environmental Quality, a verbal notice followed by a written notice may be given. For these safety or public health violations, Franchisee shall have 24 hours from notification to correct the violation. For all other violations and liabilities the written notice shall describe in reasonable detail the specific violation so as to afford Franchisee an opportunity to remedy the violation. Franchisee shall have ten (10) days subsequent to receipt of the notice in which to correct the violation. Franchisee may, within five (5) days of receipt of notice, notify the City Administrator that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Franchisee to the City Administrator shall specify with particularity the matters disputed by Franchisee. Council Bill No.3055 Ordinance No. 2552 Page 26 41 6.3.2 The City Council shall hear Franchisee's dispute at its next regularly or specially scheduled meeting. The Council shall supplement its decision with written findings of fact. 6.3.3 If after hearing the dispute the claim is upheld by the Council, Franchisee shall have ten (10) days from such a determination to remedy the violation or failure. Penalties shall accrue from time of initial notification until such time as the violation or failure is resolved to the satisfaction of the City Administrator. 6.3.4 Franchisee shall be liable for full payment of all penalties imposed under this section. 6.4 City's Right to Revoke. In addition to all other rights which the City has pursuant to law or equity, the Council reserves the right to revoke, terminate, or cancel this franchise, and all rights and privileges pertaining thereto, in the event that: 6.4.1 Franchisee violates any of the following provisions of this franchise which are deemed to be material to the performance of the franchise, and fails to cure such violation in accordance with Section 6.3: Standards for Collection and Disposal of Solid Waste and Recyclable Materials (Section 3) Compensation (Section 4 ) Insurance (Section 5) Assignment or Sale of Franchise (Section 8) 6.4.2 Franchisee practices any fraud upon the City or customer. 6.4.3 Franchisee becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt. 6.4.4 Franchisee misrepresents a material fact in the negotiation of, or renegotiation of, or renewal of, the franchise. 6.4.5 After conducting a public hearing and documenting in findings of fact that it is in the best interest of the public to do so. 6.5 Enforcement. 6.5.1 The City Administrator shall have the right to observe and inspect all aspects of collection operations, facilities, services, and records which are subject to the provisions of this franchise, to insure compliance. Council Bill No.3055 Ordinance No. 2552 Page 27 42 6.5.2 If Franchisee at any time fails to promptly and fully comply with any obligation of this agreement after receiving a written notice and a reasonable opportunity to comply, the City Administrator may elect to perform the obligation at the expense of Franchisee. 6.5.3 If Franchisee defaults in any of the terms required to be performed by it under the terms of this franchise, and the default continues for ten (10) days afterwritten notification by the City Administrator, this franchise may, at the option of the Council, become null and void. 6.5.4 The City Administrator reserves the right to make such further regulations as may be deemed necessary to protect the interests, safety, welfare and property of the public and carry out purposes stated in Section 3 of this franchise agreement. The City Administrator or Franchisee may propose amendments to this franchise. Proposals shall be in writing and shall be afforded an adequate review process. After review of the proposed amendments to the franchise, the Council may adopt the amendments. 6.5.5 All remedies and penalties under this franchise agreement, including termination, are cumulative, and the recovery or enforcement of one is not a waiver or a bar to the recovery or enforcement or any other recovery, remedy or penalty. In addition, the remedies and penalties set out in this ordinance are not exclusive, and the City reserves the right to enforce the penal provisions of any other ordinance, statute or regulation, and to avail itself of any all remedies available at law or in equity. Failure to avail itself of any remedy shall not be construed as a waiver of that remedy. Specific waiver of any right by the City for a particular breach shall not constitute a general waiver of the City's right to seek remedies for any other breach, including a repetition of the waived breach. 6.6 Non-enforcement by the City. Franchisee shall not be relieved of its obligation to comply with any of the provisions of this franchise by reason of any failure of the City Administrator to enforce prompt compliance. 6.7 Written Notice. All notices, reports, or demands required to be given in writing under this franchise shall be deemed to be given when a registered or certified mail receipt is returned indicating delivery as follows: If to the City: City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 Attn: Heather Pierson, City Recorder If to Franchisee: United Disposal Service, Inc Council Bill No.3055 Ordinance No. 2552 Page 28 43 P.O. Box 608 Woodburn, Oregon 97071 Attn: Gregg Brummer, Vice President Such addresses may be changed by either party upon written notice to the other party given as provided in this section. Section 7 - Public Responsibilities 7.1 Excluded Waste. No person shall place hazardous wastes or excluded waste for collection or disposal by Franchisee at the curbside. Hazardous waste and excluded waste shall only be disposed at collection events for this specific purpose. 7.2 Accumulation of Waste. No person shall accumulate or store waste that is unsightly or in violation of the City's nuisance ordinance, or in violation of regulations of the Oregon Environmental Quality Commission. 7.3 Approved Containers. No customer shall use any waste collection container unless it is supplied by or approved by Franchisee. 7.4 Safe Loading Requirements. No stationary compactor, can, cart or container for residential, commercial or industrial use shall exceed the safe loading requirements designated by Franchisee. 7.5 Access to Container. No container shall be located behind any locked or latched gate or inside of any building or structure unless authorized by Franchisee. No person shall block the access to a container. 7.6 Safe Access. Each customer shall provide safe access to the solid waste or solid waste container without hazard or risk to Franchisee. 7.7 Can/Cart Placement. Placement of cans/carts must be within three (3) feet of curb but shall not restrict access to bicycle lanes or sidewalks and shall not be blocked by vehicles or other items. Items not for collection must be at least three (3) feet from cans/carts. Placement of cans/carts is limited to a time period of 24 hours prior to pick-up and 24 hours after pick-up. Cans/carts within alleys shall be placed to accommodate collection vehicles. 7.8 Clean Cans/Carts and Surrounding Areas. Generators or producers of waste shall clean cans/carts and shall keep the area around cans/carts and containers free of accumulated wastes. Council Bill No.3055 Ordinance No. 2552 Page 29 44 7.9 Removal of Solid Waste Prohibited. No person, other than the person producing the materials contained therein, or an officer, employee or permittee of the City, or an employee of the Franchisee shall interfere with any solid waste container, compact the contents of a container, or remove any such container or its contents from the location where the same has been placed by the person so producing the contents of said container. This subsection does not apply to the purchase of materials for fair market value as exempted by Section 2, 2.6 of this ordinance. 7.10 Collection of Solid Waste Prohibited. No person shall remove the lid from any solid waste container, nor enter into such solid waste container, nor shall any person collect, molest, compact or scatter solid waste placed out for collection and resource recovery, except the person so producing the materials contained therein, or an officer, employee or permittee of the City, or an employee of the Franchisee. 7.11 Disposal of Unauthorized Solid Waste Prohibited. No unauthorized person shall remove the lid from or interfere with any solid waste container to deposit solid waste into such container. 7.12 Stationary Compactor. No person shall install a stationary compacting device for handling of solid wastes unless it complies with all applicable federal, state, and local laws and regulations. Franchisee shall not service any such device unless these requirements are adhered to at all times. 7.13 Train System. No person shall install or operate a "train system" for the purpose of solid waste collection under this franchise agreement. 7.14 Penalties. In addition to, and not in lieu of any other available legal remedies, any violation of Section 7 of this Ordinance constitutes a Class 2 Civil Infraction, which shall be processed according to the procedures contained in the Woodburn Infraction Ordinance. Each day of continued violation is a separate offense and is separately punishable, but may be joined in a single prosecution. Section 8 - Miscellaneous 8.1 Transfer of Ownership or Control 8.1.1 This franchise shall not be sold, assigned, transferred, leased or disposed of either in whole or in part, in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person or entity without the prior written consent of the City Council, which consent shall Council Bill No.3055 Ordinance No. 2552 Page 30 45 not be unreasonably withheld. 8.1.2 Franchisee shall promptly notify the City of any actual or proposed change in or transfer of, or acquisition by any other party of control of the Franchisee. The word "control" as used herein is not limited to majority stockholders, but includes actual working control in whatever manner exercised. Every change, transfer or acquisition of control of the Franchisee shall make this Franchise subject to cancellation unless and until the City Council has consented thereto. 8.1.3 The parties to the sale or transfer of this franchise agreement shall make a written request to the City Council for its approval and furnish all information reasonably required for City Council consideration. 8.1.4 The City Council's approval shall be based upon the financial responsibility of the party whom the franchise is proposing for sale, assignment or transfer. In reviewing a request for sale or transfer, the City Council may inquire into the financial capability, technical ability, legal qualifications, demonstrated ability, and experience of the prospective controlling party or transferee to comply with the terms of the franchise as determined by the City, and must agree to comply with all provisions of the franchise agreement. 8.1.5 The City shall be deemed to have approved the proposed transfer or assignment in the event that its decision is not communicated in writing to the franchisee within 90 days following receipt of written notice of the proposed transfer. 8.1.6 Within thirty (30) days of any transfer or sale, if approved or deemed granted by the City Council, Franchisee shall file with the City a copy of the deed, Agreement, lease, bill of sale, stock power or other written instrument evidencing such sale or transfer of ownership or control, certified and sworn to as correct by the Franchisee and the transferee. The City shall treat such instrument or other documentation as confidential, as permitted by Applicable Law, if Franchisee requests confidential treatment for any such document in writing 8.2 Performance Bond. As part of any assignment or transfer of franchise, as provided in Subsection 8.1, Franchisee shall provide a performance bound in the a form acceptable to the City, in the amount of $1 ,000,000 with a surety licensed to do business in the State of Oregon conditioned upon the full and faithful performance of this franchise agreement and franchise and this chapter. 8.3 Change of Law; Amendment of Franchise Agreement. Council Bill No.3055 Ordinance No. 2552 Page 31 46 8.3.1. It is the intent of the parties that this Agreement may be amended from time to time to conform to any changes in the controlling federal or state law or other changes material to this agreement. Each party agrees to bargain in good faith with the other party concerning such proposed amendments. 8.3.2 This Agreement may be amended or terminated by the mutual consent of the parties and their successors-in interest. 8.3.3 To the extent any lawful City rule, ordinance or regulation is adopted on a jurisdiction-wide basis and is generally imposed on similarly situated persons or entities, the rule, ordinance or regulation shall apply without need for amendment of this Agreement. City shall provide Franchisee notice of any such change in law prior to its adoption. 8.4 Severability and Constitutionality. If any portion or phrase of this ordinance is for any reason held invalid or declared unconstitutional by any court, such portion shall be deemed a separate and independent provision; and such holding shall not affect the constitutionality of the remaining portion hereof. The council hereby declares that it would have passed this ordinance and each portion and phrase hereof, irrespective of the fact that any one (1 ) or more portions or phrases be declared illegal, invalid or unconstitutional. If, for any reason, the franchise fee under Section 5 of this ordinance is invalidated or amended by the act of any court or governmental agency, the City Administrator may either renegotiate the compensation section of this agreement or adopt the highest reasonable franchise fee allowed by such court or other governmental agency as the franchise fee charged by this ordinance. 8.5 Continuity of Service Mandatory. Upon expiration or the termination of this franchise, the City Administrator may require Franchisee to continue to operate the system for an extended period of time, not to exceed twelve (12) months. Franchisee shall, as trustee for its successor in interest, continue to operate under the terms and conditions of this franchise. In the event Franchisee does not so operate, the City Administrator may take such steps as deemed necessary to assure continued service to subscribers. Costs associated with such actions shall be the sole responsibility of Franchisee. 8.6 Rules of Construction. This ordinance shall be construed liberally in order to effectuate its purposes. Unless otherwise specifically prescribed in this ordinance, the following provisions shall govern its interpretation and construction: 8.6.1 The singular may include the plural number, and the plural may include the singular number. Council Bill No.3055 Ordinance No. 2552 Page 32 47 8.6.2 "May" is permissive and "shall" is mandatory. 8.7 Calculation of Time. Time shall be computed so as to exclude the first and include the last day of the prescribed or fixed period of time unless stipulated otherwise in this agreement. When the last day of the period falls on Saturday, Sunday, or a legal holiday, that day shall be omitted from the computation. 8.8 Repeal; Effective Date. This ordinance shall repeal Ordinance 1641 . If this ordinance is void for any reason, Ordinance 1641 shall remain repealed in its entirety. This ordinance shall be in full force and effect as of the date indicated below, but this ordinance shall be void unless Franchisee files with the City Recorder, within 30 days, Franchisee's unconditional written acceptance of the terms, conditions, and obligations to be complied with or performed by it under this ordinance. Approved as to form: City Attorney Date APPROVED: Mayor Passed by the Council: Submitted to the Mayor: Approved by the Mayor: Filed in the Office of the Recorder: ATTEST Recorder City of Woodburn ACCEPTED BY FRANCHISEE this day of 2018: By United Disposal Service, Inc. dba Republic Services of Marion County-Woodburn Council Bill No.3055 Ordinance No. 2552 Page 33 48 �'I'1 r I Iii♦ r} Y 9M& Its BU Pri,a�<;rrt rr rf aA'!87 January, 22, 2018 TO: Honorable Mayor and City Council through City Administrator FROM: Chris Kerr, Community Development Director SUBJECT: Assignment of Statutory Development Agreement- Boones Crossing Development (SDA 2016-01) RECOMMENDATION: Authorize the City Administrator to execute the following documents: 1 . An Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC (Assignor) to Stafford Homes & Land, LLC (Assignee) 2. An Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC (Assignor) to Claud and Virginia Davis (Assignee) BACKGROUND: As the City Council recalls, on December 12, 2016, a public hearing was held and an ordinance was enacted to approve a Statutory Development Agreement (SDA) for Phases 3, 4, 5, and 6 of the Boones Crossing Planned Unit Development (PUD). After the last four phases of Boones Crossing sat undeveloped for several years and there was uncertainty surrounding the development's progress, the City and the involved parties used the SDA as the mechanism to guide the development towards completion. The Boones Crossing SDA addressed: (1 ) the remaining public improvements needed to support development of the property consistent with the PUD; (2) the Owners' obligations regarding payment for the public improvements; (3) determinations regarding the conditions of the PUD; and (4) finally resolved the potential litigation related to the PUD. In December 2017, Premier Development LLC (Phase 3) requested that the City approve the assignment of its rights and duties under the SDA to Stafford Homes & Land, LLC (for lots 98, 99, 100, 101 , 102, 103, 114, 115, 116, 117, 118, 119, 120, 121 , 122, 124, 125, 126, 131 , 133, and 135) and to Claud and Virginia Davis (for lots 94, Agenda Item Review: City Administrator_x_ City Attorney_x_ Finance—x- 49 Honorable Mayor and City Council January 22, 2018 Page 2 95, 96, 97, 104, 105, 106, 107, 108, 109, 110, 1 1 1 , 112, 113, 123, 127, 128, 129, 130, 132, and 134). DISCUSSION: Section 9 of the SDA provides as follows: 9. Assignability of Agreement. This Agreement shall not be assigned by an Owner, in whole or in part, without the advance written approval of the City, which shall not be unreasonably withheld. The terms and conditions contained in this Agreement shall, subject to the provisions of this assignment, apply to and bind the heirs, successors, personal representatives, and assigns of all of the Parties hereto. This section clearly requires the approval of the City prior to the assignment of an Owner's obligations under the SDA but also states that the City's approval "shall not be unreasonably withheld." Since the proposed assignments appear reasonable and notice has been provided to the parties to the SDA, staff recommends that the City Administrator be authorized to execute the Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC (Assignor) to Stafford Homes & Land, LLC (Assignee) and the Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC (Assignor) to Claud and Virginia Davis (Assignee). FINANCIAL IMPACT: None. Attachments: 1 . Assignment Addendum for Stafford Homes & Land, LLC 2. Assignment Addendum for Claud and Virginia Davis 3. Notice of Assignment of Statutory Development Agreement 50 STATUTORY DEVELOPMENT AGREEMENT ASSIGNMENT ADDENDUM FOR PHASE 3 OF THE BOONES CROSSING PLANNED UNIT DEVELOPMENT This Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development("Assignment Addendum"), is entered into on the dates executed as shown below by and between Premier Development, LLC, an Oregon limited liability company ("Assignor") and Stafford Homes & Land, LLC, an Oregon limited liability company ("Assignee"), and as approved by the City of Woodburn, an Oregon municipal corporation (the "City"). RECITALS A. Assignor, among other parties, and the City entered into that Statutory Development Agreement for Phases 3, 4, 5, and 6 of the Boones Crossing Planned Unit Development, dated December 13, 2016 ("Development Agreement"). B. Section 9 of the Development Agreement permits, with the City's approval, that a party to that agreement may assign, in whole or in part, their rights and duties in the Development Agreement to a third party. The terms and conditions contained in the Development Agreement are to "apply to and bind the heirs, successors,personal representatives, and assigns of all the parties [to the Development Agreement]." C. After finalizing a plat for the Boones Crossing Phase 3 Planned Unit Development ("PUD") and completing all necessary public improvements for the PUD, Assignor now intends to sell individual lots within the PUD to certain homebuilders. Assignor plans to sell twenty-one(21) of the lots within Boones Crossing Phase 3 to the Assignee. D. On December 1, 2017, Assignor requested approval from the City to assign, in whole, its rights and duties in the Development Agreement to two separate entities, one being the Assignee hereunder, the other being Claud and Virginia Davis, individuals (the "Davises"). E. Assignor desires to obtain the City's approval to such assignment and the City desires to grant such approval in accordance with the terms and conditions contained in this Addendum, which also serves to document Assignee's assumption of the rights and duties of the Development Agreement. F. All terms not otherwise defined herein shall have the meaning assigned to them in the Development Agreement. AGREEMENT 1. Assignment and Assumption. As part of Assignor's sale to and Assignee's purchase of certain real property set out under a separate agreement, Assignor assigns and delegates and the Assignee assumes and accepts all of Assignor's rights, duties, and obligations under the Development Agreement except as herein provided. ASSIGNMENT ADDENDUM Stafford Homes&Land,LLC Page 1 of 6 51 1.1 Per Lot Rights and Duties. Assignee is taking ownership and responsibility of lots 98, 99, 100, 101, 102, 103, 114, 115, 116, 117, 118, 119, 120, 121, 122, 124, 125, 126, 131, 133, and 135 within the Boones Crossing Phase 3 Property. Therefore, as to applicable reimbursements,payments, and credits for infrastructure improvements, dedications, and prepaid park SDCs, the Assignee shall be entitled to, and responsible for only those rights and duties under the Development Agreement for the lots listed above. Under Subsection 3.5.2(b) of the Development Agreement, Assignee becomes a Benefiting Phase Owner of the Boones Crossing Phase 6 park dedication. Assignee assumes the obligation to pay the Phase 6 Owners the per-lot sum indicated in the Development Agreement plus a pro rata portion of the ten thousand dollar 0/100 ($10,000) sum required to be paid on the basis of the number of lots being purchased by the Assignee(i.e. $1,239.67 + $10,000/42 = $1,477.77 per lot). Assignee may, at its sole discretion, make payments to the Phase 6 Owners for more than one lot at a time. 1.2 Homeowner's Association. Per Section 4.5.3 of the Development Agreement, Boones Crossing Phase 3 must establish and provide for a homeowners association ("HOA") for all lots within Phase 3. Assignor has recorded HOA and CCR documents for Phase 3 lots with the Marion County Clerk's Office. Now, Assignee shall assume responsibility of the HOA duty by registering as the Declarant of the HOA. Assignee shall ensure that all Phase 3 lots both owned by the Assignee and those purchased and owned by the Davises are integrated into the HOA for purposes of organization, operation, and the payment of dues. Assignee shall also ensure that the HOA contributes agreed upon fees to the Boones Crossing Phase 1 HOA to assist with storm water management that benefits Phase 3 lots but occurs in the Phase 1 property. 1.3 Public Improvements. Prior to execution of this Assignment Addendum, Assignor shall complete, with final inspections delivered to the City, all necessary public improvements as to Phase 3's storm sewer, sanitary sewer, and water systems, as well as street construction. Assignor shall also provide the City with a maintenance bond for these improvements per the requirements of Woodburn Development Ordinance 4.02.08. Should any public improvements remain unfinished or unfulfilled by Assignor, Assignee shall assume responsibility for completing the improvements to a satisfactory standard as required by the City's planning and public works departments. 1.4 Street Trees and Landscaping. Assignee assumes responsibility for installation of all street trees and landscaping required for each lot listed under 1.1. Prior to the City's issuance of any building permits to Assignee for the designated lots, Assignee shall furnish the City with an acceptable Street Tree and Landscaping Bond or other performance guarantee as required under Woodburn Development Ordinance 4.02.08. 2. Further Actions. Assignor and Assignee agree to execute, acknowledge and deliver all such other and additional instruments, notices, and other documents and will do all such other acts as may be necessary or advisable to fully assign to Assignee all of the respective rights and ASSIGNMENT ADDENDUM Stafford Homes&Land,LLC Page 2 of 6 52 interests herein granted or intended to be granted and to carry out their respective obligations under this Assignment Addendum. 3. Indemnification and Hold Harmless. Assignee agrees to indemnify and hold Assignor harmless for any costs, debts, or obligations that may arise under the Development Agreement as to the lots purchased by Assignee as set out under Section 1.1. 4. No Representations or Warranties. While the City shall endeavor to make all necessary and prudent planning and development records available to the Assignee to ease with transitional matters that may arise, the City makes no representations or warranties to the Assignee as to the condition, suitability, or fitness of the property within the Boones Crossing PUD that Assignee is assuming responsibility for under the Development Agreement. 5. Further Assi_ng ability. Assignee shall not further assign its rights and duties under this addendum to the Development Agreement, in whole or in part, without the advance written approval of the City, which shall not be unreasonably withheld per the requirements of Section 9 of the Development Agreement. 6. Notice. To fulfill any notice or communication requirements under the Development Agreement, Assignee provides the following address and contact information: Stafford Homes & Land, LLC Attn: 485 South State Street Lake Oswego, OR 97204 With copy to: (attorney/rep.) 7. Amendments. Nothing within this Assignment Addendum amends or modifies the terms and conditions of the Development Agreement or the Boones Crossing Decision, as modified, and the rights and duties of all parties thereunder. 8. Governing _Law. This Assignment Addendum shall be governed by and construLaw. This Assignment Addendum shall be governed by and construed in accordance with the laws of the State of Oregon. [Signature Pages Follow] ASSIGNMENT ADDENDUM Stafford Homes&Land,LLC Page 3 of 6 53 Executed this day of , 2018. ASSIGNOR, Premier Development, LLC By: Title: STATE of OREGON ) COUNTY of MARION ) On this day of , 2018, personally appeared before me and stated that (s)he is the of Premier Development, LLC, a limited liability company, and that the instrument was signed on behalf of said entity and acknowledged said instrument to be its voluntary act and deed. Before me: Notary Public for Oregon Print Name: My Commission Expires: SEAL: ASSIGNMENT ADDENDUM Stafford Homes&Land,LLC Page 4 of 6 54 Executed this day of , 2018. ASSIGNEE, Stafford Homes & Land, LLC By: Title: STATE of OREGON ) COUNTY of MARION ) On this day of , 2018, personally appeared before me and stated that (s)he is the of Stafford Homes & Land, LLC, a limited liability company, and that the instrument was signed on behalf of said entity and acknowledged said instrument to be its voluntary act and deed. Before me: Notary Public for Oregon Print Name: My Commission Expires: SEAL: ASSIGNMENT ADDENDUM Stafford Homes&Land,LLC Page 5 of 6 55 Approved as to the assignment this day of , 2018. CITY, City of Woodburn, an Oregon municipal corporation Scott Derickson City Administrator ASSIGNMENT ADDENDUM Stafford Homes&Land,LLC Page 6 of 6 56 STATUTORY DEVELOPMENT AGREEMENT ASSIGNMENT ADDENDUM FOR PHASE 3 OF THE BOONES CROSSING PLANNED UNIT DEVELOPMENT This Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development("Assignment Addendum"), is entered into on the dates executed as shown below by and between Premier Development, LLC, an Oregon limited liability company ("Assignor") and Claud and Virginia Davis, individuals ("Assignee"), and as approved by the City of Woodburn, an Oregon municipal corporation (the "City"). RECITALS A. Assignor, among other parties, and the City entered into that Statutory Development Agreement for Phases 3, 4, 5, and 6 of the Boones Crossing Planned Unit Development, dated December 13, 2016 ("Development Agreement"). B. Section 9 of the Development Agreement permits, with the City's approval, that a party to that agreement may assign, in whole or in part, their rights and duties in the Development Agreement to a third party. The terms and conditions contained in the Development Agreement are to "apply to and bind the heirs, successors,personal representatives, and assigns of all the parties [to the Development Agreement]." C. After finalizing a plat for the Boones Crossing Phase 3 Planned Unit Development ("PUD") and completing all necessary public improvements for the PUD, Assignor now intends to sell individual lots within the PUD to certain homebuilders. Assignor plans to sell twenty-one(21) of the lots within Boones Crossing Phase 3 to the Assignee. D. On December 1, 2017, Assignor requested approval from the City to assign, in whole, its rights and duties in the Development Agreement to two separate entities, one being the Assignee hereunder, the other being Stafford Homes & Land, LLC, a limited liability company ("Stafford Homes"). E. Assignor desires to obtain the City's approval to such assignment and the City desires to grant such approval in accordance with the terms and conditions contained in this Addendum, which also serves to document Assignee's assumption of the rights and duties of the Development Agreement. F. All terms not otherwise defined herein shall have the meaning assigned to them in the Development Agreement. AGREEMENT 1. Assignment and Assumption. As part of Assignor's sale to and Assignee's purchase of certain real property set out under a separate agreement, Assignor assigns and delegates and the Assignee assumes and accepts all of Assignor's rights, duties, and obligations under the Development Agreement except as herein provided. ASSIGNMENT ADDENDUM Claud&Virginia Davis Page 1 of 6 57 1.1 Per Lot Rights and Duties. Assignee is taking ownership and responsibility of lots 94, 95, 96, 97, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 123, 127, 128, 129, 130, 132, and 134 within the Boones Crossing Phase 3 Property. Therefore, as to applicable reimbursements,payments, and credits for infrastructure improvements, dedications, and prepaid park SDCs, the Assignee shall be entitled to, and responsible for only those rights and duties under the Development Agreement for the lots listed above. Under Subsection 3.5.2(b) of the Development Agreement, Assignee becomes a Benefiting Phase Owner of the Boones Crossing Phase 6 park dedication. Assignee assumes the obligation to pay the Phase 6 Owners the per-lot sum indicated in the Development Agreement plus a pro rata portion of the ten thousand dollar 0/100 ($10,000) sum required to be paid on the basis of the number of lots being purchased by the Assignee(i.e. $1,239.67 + $10,000/42 = $1,477.77 per lot). Assignee may, at its sole discretion, make payments to the Phase 6 Owners for more than one lot at a time. 1.2 Homeowner's Association. Per Section 4.5.3 of the Development Agreement, Boones Crossing Phase 3 must establish and provide for a homeowners association ("HOA") for all lots within Phase 3. Assignor has recorded HOA and CCR documents for Phase 3 lots with the Marion County Clerk's Office. Under a separate assignment addendum, Stafford Homes has assumed responsibility to register as the Declarant of the HOA. Assignee agrees that it will cooperate fully with Stafford Homes to ensure that all Phase 3 lots both owned by the Assignee and those purchased and owned by Stafford Homes are integrated into the HOA for purposes of organization, operation, and the payment of dues. 1.3 Public Improvements. Prior to execution of this Assignment Addendum, Assignor shall complete, with final inspections delivered to the City, all necessary public improvements as to Phase 3's storm sewer, sanitary sewer, and water systems, as well as street construction. Assignor shall also provide the City with a maintenance bond for these improvements per the requirements of Woodburn Development Ordinance 4.02.08. Should any public improvements remain unfinished or unfulfilled by Assignor, Assignee shall assume responsibility for completing the improvements to a satisfactory standard as required by the City's planning and public works departments. 1.4 Street Trees and Landscapes. Assignee assumes responsibility for installation of all street trees and landscaping required for each lot listed under 1.1. Prior to the City's issuance of any building permits to Assignee for the designated lots, Assignee shall furnish the City with an acceptable Street Tree and Landscaping Bond or other performance guarantee as required under Woodburn Development Ordinance 4.02.08. 2. Further Actions. Assignor and Assignee agree to execute, acknowledge and deliver all such other and additional instruments, notices, and other documents and will do all such other acts as may be necessary or advisable to fully assign to Assignee all of the respective rights and interests herein granted or intended to be granted and to carry out their respective obligations under this Assignment Addendum. ASSIGNMENT ADDENDUM Claud&Virginia Davis Page 2 of 6 58 3. Indemnification and Hold Harmless. Assignee agrees to indemnify and hold Assignor harmless for any costs, debts, or obligations that may arise under the Development Agreement as to the lots purchased by Assignee as set out under Section 1.1. 4. No Representations or Warranties. While the City shall endeavor to make all necessary and prudent planning and development records available to the Assignee to ease with transitional matters that may arise, the City makes no representations or warranties to the Assignee as to the condition, suitability, or fitness of the property within the Boones Crossing PUD that Assignee is assuming responsibility for under the Development Agreement. 5. Further Assi_ng ability. Assignee shall not further assign its rights and duties under this addendum to the Development Agreement, in whole or in part, without the advance written approval of the City, which shall not be unreasonably withheld per the requirements of Section 9 of the Development Agreement. 6. Notice. To fulfill any notice or communication requirements under the Development Agreement, Assignee provides the following address and contact information: Claud& Virginia Davis 1119 NW Courtney Laine Dr McMinnville, OR 97218 With copy to: (attorney/rep.) 7. Amendments. Nothing within this Assignment Addendum amends or modifies the terms and conditions of the Development Agreement or the Boones Crossing Decision, as modified, and the rights and duties of all parties thereunder. 8. Governing Law. This Assignment Addendum shall be governed by and construed in accordance with the laws of the State of Oregon. [Signature Pages Follow] ASSIGNMENT ADDENDUM Claud&Virginia Davis Page 3 of 6 59 Executed this day of , 2018. ASSIGNOR, Premier Development, LLC By: Title: STATE of OREGON ) COUNTY of MARION ) On this day of , 2018, personally appeared before me and stated that (s)he is the of Premier Development, LLC, a limited liability company, and that the instrument was signed on behalf of said entity and acknowledged said instrument to be its voluntary act and deed. Before me: Notary Public for Oregon Print Name: My Commission Expires: SEAL: ASSIGNMENT ADDENDUM Claud&Virginia Davis Page 4 of 6 60 Executed this day of , 2018. ASSIGNEE, Claud Davis Virginia Davis STATE of OREGON ) COUNTY of MARION ) On this day of 2018, this instrument was acknowledges before me by Claud Davis. Before me: Notary Public for Oregon Print Name: My Commission Expires: SEAL: STATE of OREGON ) COUNTY of MARION ) On this day of 2018, this instrument was acknowledges before me by Virginia Davis. Before me: Notary Public for Oregon Print Name: My Commission Expires: SEAL: ASSIGNMENT ADDENDUM Claud&Virginia Davis Page 5 of 6 61 Approved as to the assignment this day of , 2018. CITY, City of Woodburn, an Oregon municipal corporation Scott Derickson City Administrator ASSIGNMENT ADDENDUM Claud&Virginia Davis Page 6 of 6 62 BURN ZMESM Incorporated 1889 January 17, 2018 Sent by First Class Mail and E-mail Premier Development, LLC Woodburn Development, LLC Nancy Bocchi Attn: Lori Zumwalt Attn: Mark Handris 3718 Lake Grove Ave. 1312 NE Highway 99W 1980. Willamette Drive, Suite 200 Lake Oswego, OR 97035 McMinnville, OR 97128 West Linn, OR 97068 nancybocchi@gmail.com Goriz.premier@gmail.com handris@aol.com cc: Andrew H. Stamp,Attorney cc: Michael C. Robinson, Attorney Faye Zimmer Andrew H. Stamp, P.C. Perkins Coie LLP 16175 NW Blueridge Dr. Kruse Mercantile Prof. Offices, Ste 16 1126 NW Couch Street,Tenth Floor Beaverton, OR 97006 4248 Gaiewood Street Portland, OR 97269 Lake Oswego, O:R 97035r r m. w 1�1 „ „ corn cc: Gregory S. Hathaway, Attorney m"gym ar . net Hathaway Koback Connors LLP 1331 NW Lovejoy Street, St. 950 Portland, OR 97209 conrl Re: Notice of Assignment of Statutory Development Agreement— Boones Crossing Development(SDA 20116-01) To all interested parties: Please be aware that pursuant to Section 9 of the Statutory Development Agreement for Phases 3, 4, 5, and 6 of the Boones Crossing Planned) Unit Development between the City of Woodburn, Oregon; Premier Development, LLC; Woodburn Development, LLC; Nancy Bocchi and Faye Zimmer (recorded 12-20-20:16, Reel 3893 Page 245, in Marion County)that the City of Woodburn intends to approve the following assignment documents: 1, An Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC(Assignor)to Stafford Homes & Lund, LLC (Assignee) 2. An Assignment Addendum for Phase 3 of the Boones Crossing Planned Unit Development by Premier Development, LLC(Assignor) to Claud and Virginia Davis (Assignee) The Woodburn City Council will consider authorizing the City Administrator to execute the assignment docur"n ( ched) at its January 22, 2018 meeting at 7:00 p.m. in the Woodburn City Council Chambers. entsefts Scott Derickson City Administrator Office of the City Administrator 70�11'1owt;,irwiy SP1€a t tih4�au{l7tra ra, f)e carr U�"'of`� Attachments (2) art 03-�d,52 iX28.R�x X03)82-5_14.3 im 63 �(�'�'1 -r ,I lig♦ +"♦ January 22, 2018 TO: Honorable Mayor and City Council FROM: Scott C. Derickson, City Administrator SUBJECT: FY 2018/19 Financial Plan RECOMMENDATION: Adopt the attached FY 2018-19 Financial Plan (Budget Policies & Fiscal Strategy and Five-Year Financial Forecast) via a motion. BACKGROUND: In past years, the City has experienced a series of difficult financial challenges. During the recession which spanned nearly a decade from 2008 - 2015, 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 2018/19 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. The intent of the Financial Plan is to help predict cost and revenue trends from year to year and make better decisions via the memorializing of sound financial practices and budget administration. If necessary, the Financial Plan informs the need to reduce the City's budget to remain consistent with the City Council goals and meeting community needs within available resources. PROPOSED 2018/19 POLICY: Agenda Item Review: City Administrator_x_ City Attorney_x Finance_x- 64 Honorable Mayor and City Council January 22, 2018 Page 2 Attached is the proposed FY 2018/19 Budget Policies & Fiscal Strategy, which is largely unchanged from the previous year. The proposed FY 2018-19 Financial Plan maintains the Council directed General Fund PERS Reserve line item at a minimum of $250,000 and steadily increase the balance through annual savings. In addition, the General Fund's Contingency Reserve remains at 17 percent with a long-term goal of increasing the reserve to 25 percent of the General Fund operating expenditures as savings occur over the next few years. Benefit cost increases continue to be a threat to operations. Based on early PERS projections, the City had been anticipating a 20 percent increase for each of the next three biennium. Unfortunately, the actual FY 2018/19 rate increase for Woodburn will be approximately 25 percent, translating to an overall citywide increase of $376,329, with $280,274 allocated to the General Fund. We are now expecting increases of similar size over the next two upcoming biennium. 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 $2,102,200 across all funds. In FY 2018/19, we will budget an increase to $2,312,200. Should these costs create a significant shortfall in the upcoming year, the adjusted General Fund Shortfall Management Reserve will 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 questions. 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. 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. 65 City of Woodburn FY 2018/19 Financial Plan Budget Policies, Fiscal Strategy & Five Year Forecast • SECTION 1. ANNUAL REVIEW & POLICY A. Fiscal Responsibility. The policy of the City of Woodburn is 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 will be discouraged. New initiatives will be funded by reallocating existing City resources to 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. Annual 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 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 the role outlined in the Woodburn City Charter, the City Council is responsible for providing policy direction to determine the City's overall financial health. In response to the fiscal recommendations made by the City Administrator, the City Council shall consider all measures necessary to sustain current 1 66 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 funded primarily from City discretionary resources, and 2) those funded primarily from dedicated resources. B. Discretionary Resources. The General Fund collects 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. City services funded primarily through dedicated funds include such items as speed and safety belt enforcement, grant funded transportation, utility services, etc. Dedicated resources are normally subject to restrictions via state and federal law, grant agreements and contracts, City policy and ordinances. • 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 and alternative revenue sources wherever possible. Funding for lower priority programs will be reduced or eliminated to ensure that expenditures remain in balance with resources. 2 67 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 flexibility 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. L Revenue Estimates. Departments should budget for revenues based on the best information available during the annual 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. Subsequent annual estimates should also take into consideration the actual receipts from the previous year. J. Pursuit of New Departmental Revenues. Departments shall pursue revenue sources to the fullest extent possible for all services as well as total cost identification (including indirect costs) for fee setting purposes, grants or other funding opportunities. Any new revenue sources should be used to offset the cost of existing staff and programs, rather than funding new staff or programs. Fee schedules will be reviewed annually to ensure costs are recovered. Fee schedules will be updated as part of the annual budget process. K. Expenditure Reductions. Reductions in revenues may require expenditure reductions from the "base budget"level. If reductions are required, the City Administrator will be guided by the City Council's adopted Resource Reduction Strategy (See Section 19). 3 68 L. New Discretionary Programs. New discretionary programs, deemed a high priority activity, may be included in the Proposed Budget with the prior approval by the City Administrator. If programs are added/expanded, an evaluation will be made on the impact to supporting services (e.g. information, finance, facilities, human resource, budget, etc.). Any 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. D. Overhead Cost Allocation Charles. All non-General Fund departments should budget the amount allocated to that department. 4 69 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 first be used to meet operational expenses, and subsequently fund capital projects in a manner consistent with Woodburn's Capital improvement plans and operating requirements. 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, and debt covenant requirements are met. 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. • 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), with a goal of establishing a citywide PERS reserve. The initial General Fund 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 a minimum of $250,000, and steadily increase the balance through annual savings. In FY 2018-19 the City will analyze the cost/benefit of retaining the reserve versus paying the balance to PERS to reduce the unfunded liability. B. General Fund Contingencies. Not including the PERS General Fund Reserve, and consistent with Government Finance Officers Association (GFOA)best practices, at least 17 percent of the General Fund's operating appropriation shall be placed into the operating contingency to meet cash flow needs, with a long-term goal of increasing the reserve to 25 percent as year-end savings occur. In addition, it is the goal of the City to preserve contingences to the greatest extent possible for the purposes of rolling the balance into the following year's General Fund's Beginning Fund Balance. If contingency is expended, an effort will be made to reduce expenses to retain a minimum of 17 percent General Fund contingency. C. Shortfall Management Reserve (SMR). The SMR is intended to subsidize future shortfalls estimated in the Five-Year Forecast. 5 70 D. Water & Sewer Fund Contingencies. The Water and Sewer Funds will maintain annual contingencies of not less than 5%. E. Equipment Replacement. This fund is for the replacement of vehicles and equipment. The goal is for City departments to transfer one-tenth the value of its fixed asset inventory every year as budget allows to ensure future replacement funding is available. Replacement fund transfers may be limited or delayed in order to preserve operational budgets. • 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 6 71 managed within adopted levels. No overtime costs can exceed budgeted levels without first obtaining the authorization of the City Administrator. • SECTION 8. MID-YEAR BUDGET REDUCTIONS 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, CONTINGENCY(ALL FUNDS) A. Non-Emer2ency 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 72 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, the City will 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 or a City Council approved reserve. • 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. 8 73 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. 9 74 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 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. INVESTMENTS A. Administration. The Finance Department will be responsible for the administration of the City's investments. B. Compliance. Investment of City funds will be in compliance with applicable sections of ORS 294, will be limited to cash balances not immediately necessary to fund operations, and will be limited to eighteen month maturity or less. C. Obiectives. Investment objectives, in priority order, are: 1. Safety: Preserving the principal balance by investing in legally authorized securities that limit the risk of loss, and reduce custodial risk through the use of a third-party custodian who will hold securities in the City's name evidenced by contract and monthly statements; 2. Liquidity: Investments will remain sufficiently liquid to meet all operating requirements that may be reasonable anticipated; and 3. Yield: The investments shall be made with the objective of attaining a market rate of return, which takes into account investment risks and liquidity needs. D. Authorized Investments. As allowed by ORS 294.035 and 294.810, include: 1. Deposits in insured institutions or credit unions in compliance with ORS; 2. Oregon Short-Term Funds (OSTF)/Local Government Investment Pool (LGIP); and 3. U.S. Treasury and Government Agency Obligations, which are lawfully issued general obligations of the United States and whose payment is guaranteed by the United States Government. E. Investment Management and Reporting. 1. Methods: Except where legally required to hold separate funds, the City will consolidate cash balances from all funds to maximize investment earnings. Net investment income will be allocated to the various funds based on generally accepted accounting principles. 10 75 2. Reporting: On a monthly the City Council will receive a report outlining the investment balances, securities held, maturity dates, and a status of compliance with the investment policy. • SECTION 17. 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 17 (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. Any and all requests for audit filing or presentation 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. 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. 11 76 G. Budget Committee Review. A copy of the annual financial report will be provided to the Woodburn Budget Committee for their review. • SECTION 18. PROGRAMS A. Discretionary Programs. To the extent discretionary resources are available, high priority services areas will be slated for growth. 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: ✓ 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 (new and replacements of equipment and 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 19. RESOURCE REDUCTION STRATEGY(ALL FUNDS) A. Goal & Reduction Approach. When faced with a potential reduction in resources, the City's goal is to continue to provide services in a professional, effective and efficient manner. Consequently, to the extent possible, across-the-board reductions in expenditures will be avoided. B. Case-by-Case Consideration. Reductions will be made on a case-by-case basis, focusing on each individual program or service. If possible, reduction will be made proportional to the programs and services identified by the City Council. C. Moderation When Possible. If, as a result of loss of a significant amount of discretionary resources, expenditure reductions become necessary they will be made in a moderate case-by-case basis to discretionary supported programs and services. 12 77 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 may consider a reduced work week or furlough days prior to laying off staff. F. Consideration List. 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: ✓ 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 (addition or replacement of computers and 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 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. The Transit Fund is allocated the federally allowed de minimus overhead rate of 10 percent of the fund's budget. 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 78 I n , o r Pa f c d IS 8 Five -Year Forecast Fiscal Years 2018/19 - 2022/2023 to o dHS�.ji it in Resta I e i &n a Ce II e IHS it at ii in w 54 Years r Finance Department January 2018 79 Woodburn Fiesta Mexicana (aka Fiesta) began in 1964 to mark the end of the harvest and thank the community's farmers and workers. Now in its 54th year, the tradition continues to celebrate the Hispanic culture with family orientated festivities,which include a Queen and Court coronation, parade, classic cars, carnival, soccer tournament, excellent food and amazing entertainment. In the 2017, the Oregon Heritage Commission officially named the annual Woodburn Fiesta Mexicana the first Hispanic Oregon Heritage Tradition by the Oregon Heritage Commission. Fiesta is held at Legion Park the first weekend in August. Cover artwork by Hampton Rodriquez Used with permission 80 of liri FY 201 2022/23 Table of Contents Introduction................................................................................................................................................................1 Cityof Woodburn Background...............................................................................................................................1 Purposeof the Forecast.........................................................................................................................................1 ForecastMethodology...........................................................................................................................................1 ExecutiveSummary....................................................................................................................................................2 Economic and Demographic Assumptions.............................................................................................................2 Issuesin the Coming Year.......................................................................................................................................3 Citywide Issues Beyond One Year..........................................................................................................................3 GeneralFund..............................................................................................................................................................5 BuildingInspection Fund............................................................................................................................................7 TransitFund................................................................................................................................................................8 StreetFund.................................................................................................................................................................9 WaterFund...............................................................................................................................................................10 SewerFund...............................................................................................................................................................11 RemainingFunds......................................................................................................................................................13 Major Assumptions— Revenues...............................................................................................................................14 Major Assumptions— Expenditures .........................................................................................................................15 Glossary....................................................................................................................................................................16 81 IIID'° IIID VIII o D City of Wood burn Badkgrowid The City of Woodburn is located within Marion County in the northern Willamette Valley, approximately halfway between the larger urban areas of Portland and Salem. Historically the economy of the immediate area around Woodburn centers around agricultural and forest products, with the City serving as the manufacturing and services hub for these two sectors.As nearby urban populations have grown,Woodburn has adapted by attracting a variety of new businesses ranging from advanced manufacturing, distribution and warehousing, agricultural and food processing, wood products manufacturing, regional retail and a wide range of service-providing businesses. The population of the region within a 30-mile drive of Woodburn is 2.1 million, according to the American Community Survey.Woodburn is the 21" populated city in the state and the 3rd populated city in the county. Since its incorporation in 1889, Woodburn has changed significantly in population.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 12016, its population had risen to 24,795 — a net rise of 23.4 percent over 2000.1 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 percent less than the state median household income of$51,243.2 Woodburn is an attractive community with new single and multi-family housing subdivisions already in the development queue. As surrounding communities grow and deal with ongoing transportation issues and shortages of affordable housing, Woodburn's population will grow. Marion County's adopted population projections indicate Woodburn will grow to 37,216 by 2030. UIII'"IpOS0 of Clie Farecast The intent of this forecast is to project the financial position of primary operating funds, based on current service levels and conservative assumptions.The forecast then sets the stage for the budget process, aiding both the City Administrator and City Council in establishing policies and priorities to allocate resources appropriately. 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. Farecast I IIIIII Economic forecasting is not an exact science; rather it is dependent upon the best professional judgment of the forecaster. The City of Woodburn's approach to forecasting is to apply a conservative philosophy that neither overstates revenues nor understates expenditures. To enhance the accuracy of projections, the City identifies 1 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 2018-19 to 2022-23 1 82 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 assumptions are noted at the beginning of each fund.The use of existing fund balance may be considered for one-time expenditures only. Capital improvement projects are prioritized according to master plans for Water, Sewer, Transportation, Storm Water, and Parks, but are scheduled based on available resources.To the extent possible, operations are funded first and remaining resources are allocated to fund capital improvement projects. This frequently means that improvements are delayed until the needed funding has been set aside. 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 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 the sustainability of current operations. ExecutiVe Surnmary The forecast is based on the combined effort of all City staff and 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 forecast allows the City to identify where problems might occur and provides the adequate time to take corrective action before the situation becomes a crisis. The goal in assembling this report is to reveal trends, highlight financial issues and provide suggestions and options. We look forward to feedback from the City Council and other interested parties on identified issues. Because the fund section provides detailed information,the executive summary will focus on the most significant issues facing the City. Ecoinaillic aindDeiinogiraIphic Ass u iirn P ° iii i s Oregon and the City of Woodburn's economic condition will heavily influence the population growth.Woodburn's economy determines the ability to retain the local workforce as well as attract newjob seekers.These factors will weigh heavily upon the City's ability to continue to provide a high-level service to the public. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 2 83 �IIssues iiiri t urn iii i 8 iiir • Continued focus on stabilizing finances across all funds in light of rising wages, increased retirement costs and medical insurance costs, and the need to grow the work force to sustain a growing community • The Urban Growth Boundary (UGB) expansion creates opportunities future development (an estimated 1,000 housing units are already in the permit phase), but also increases future demands on water,sewers, streets and building activities • Expansion of the Economic Development program Citywide IIIc Beyand Olins 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 percent beginning 2017-19; however, the actual rate increase was 25 percent. The updated rates received in November 2017 show a significant average increase of 28 percent for the two-year period 2019- 21. Rates are projected to increase an average of 25 percent each biennium beginning 2021-23 and peaking in 2029-31. Rate relief is projected to begin in the 2033-35 biennium. Unfortunately these projections are not the worst case scenario as significant drops in the financial market will affect interest earnings and cause PERS rates to increase beyond the current projections. In 2017 the State of Oregon created a PERS Unfunded Liability Task Force to identify options to generate savings or new funding to be applied to the PERS unfunded liability. The Task Force identified the creation of a program that will incentivize employers to reduce or eliminate the unfunded liability by providing a partial match to qualifying side account contributions.The Task Force identified an example of a 25 percent match for the creation of a qualifying side account. In FY 2017-18 the City's General Fund PERS reserve is$1.5 million and this amount is available for the creation of a qualifying PERS side account.A recommended goal and policy change is to increase the PERS reserve and to have all City funds participate in the set-aside for possible future contribution to PERS. 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 have continue to increase. Due to the uncertainty in health care premiums and the future stability of the Affordable Care Act, the first forecast year includes a 10 percent growth assumption, and 12 percent increase is assumed in years 2-5. General Fund Service demands in Police and Community Services (i.e. Library, Aquatic Center, Recreation, and Parks) will increase as Woodburn's populations grows. Meeting the service demands will require new/additional revenue or cuts to existing programs. 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 FY 2017-18 budget includes $750,000 for upgrades to the City Hall Roof and HVAC system, Council Chambers, Finance area, and the Community Development area. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 3 84 In FY 2018-19, the new marijuana tax revenue will be budgeted. This revenue is prorated based on a mix of population and the number of growers/dispensaries within the city limits. A modest value of$60,000 is included in the forecast. Water The operational fund is in weak financial health primarily due rising operational costs without a corresponding rate increase since 2006. The fund has ended each fiscal year in the positive due to the deferral of capital improvement projects. Given the anticipated population growth, new service is expected in the next five years. A consultant is currently completing a rate study, which will take into consideration capital improvement projects and operations expenses.The results of the study and a recommendation for rate increases will be presented to City Council in the spring 2018. Transit Each year the Transit Fund struggles to meet its operational needs, and most years is able to maintain a fund balance due to an annual subsidy of $116,000 from the General Fund. In FY 2016-17, despite the subsidy, the Transit Fund ended the year with an operating deficit of$27,857, which required the use of fund balance. As a corrective action, in May 2017 a position was eliminated to reduce costs.Transit is aggressively seeking grants to fund operations and maintain and/or increase current levels of service. In FY 2018-19 HB 2017 Keep Oregon Moving will be implemented, inclusive of a 0.1%employee payroll tax to fund public transportation.As of the preparation of this report,the State has not provided implementation information, nor information about revenue estimates and distribution dates. If the 0.1% tax information is released prior to the FY 2018-19 budget development, the new tax revenue and expenses will be included, otherwise this information will be included in the FY 2019-20 budget. Sewer The Sewer Fund reflects the utility rate revenue and operational costs. Major expansion at the Wastewater Treatment Plant (WWTP) originally planned in 2011-12 is on hold awaiting a decision from DEQ regarding the water quality limits for temperature. The decision may modify the original improvements projects, and will certainly cost more than planned due to the delay in completion time. Streets The City has been allowing the fund balance to grow in preparation for priority capital projects.Currently the West Hayes Street improvement is the top capital improvement project. HB 2017 Keep Oregon Moving will be implemented, inclusive of a 4-cent gas tax increase in 2018. As of the preparation of this report, the State has not provided implementation information, nor revenue estimates and distribution dates. If the gas tax information is released prior to the FY 2018-19 budget development,the new tax revenue and expenses will be included; otherwise this information will be included in the FY 2019-20 budget. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 4 85 General Fund &i,i&,n hm�ri Status Quow-rq boi ,i • None Key Asswmpbo�,is • Property tax revenue increase of 3 percent in years 1-5 • PERS rate increase (25 percent impact) as of July 1, 2017; 28 percent increases in years 2-5 • General Fund Right-of-Way charge on Water and Sewer of 5 percent continues oe-milling Posffioi,i 18,000,000 General Fund 16,000,000 .. .... .... .... .... .... .... .... .... .... i 14,000,000 � n IIIIIIIIIIIIIIIIIIIIIIIIIITransfers .�.... ii q 12,000,000 ©Capital 4�i Outlay 10,000,000 i� ii '� IIB•�������r•�C�6�r•�C� '•''•' r�C�6�r•�C�6�r•�C�6� '•'''•' �." �. Mat&Svcs I� rIi 8,000,000 A, Al „„ p,�U t A "N NO 6,000,000 N NN ���I���"�����'i..."�����I���"..;i. �II����'i..."�����I���"�����I��',, '������'i..."�����I���"�����'i� �1,'i•••"�����I���"�����I���"��� '������'i..."�����I���"�����I��� 'r"�����I���"�����I���"�����; �Y�I�'���"�����'i•••"�����I����'� 4,000,000 I¢, ININ � ���I���"�����'i..."�����I���"..;i. �II����'i..."�����I���"�����I��',, '������'i..."�����I���"�����'v �l„'I���"�����I���"�����I���"��� '������'i..."�����I���"�����I��� 'r"�����I���"�����I���"�����; �Y�I�'���"�����'i•••"�����I����'� Balance r W 2,000,000 ^, „i r dt t:� ISI;; di RIi RIi R �Ii I Ii Ii RIi I Ii Ii� r Rlid Rlid RIi RIi RIi r"RIi"RIi"R YIi^18Ii^18Ii^I, 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Projection Forecast Forecast Forecast Forecast Forecast Property taxes account for nearly two-thirds (65 percent) of the annual revenues in the General Fund. Property taxes will increase as new developments occur within City limits, but it takes several years to see the income increase.The forecast assumes a conservative 3 percent growth in property tax revenue. Franchise fees, the second largest revenue in this fund, are based on the gross revenues collected in Woodburn for utilities that use the City's right-of-way. Private utilities doing business in the City of Woodburn include City of Woodburn Five-Year Forecast 2018-19 to 2022-23 5 86 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 revenues derived from Woodburn residents also increase. Intergovernmental is the third largest type of revenue at 5 percent. This type includes state and federal grants, and state cigarette, liquor and revenue sharing.The City has begun to receive state shared revenue for marijuana sales. Revenues are projected to increase at a modest 2.0 percent rate beyond year one of the forecast period. Ca pl taa I rojects cram Operathig Revenues The City has postponed a number of maintenance projects for several years. In FY 2017-18 a budget of$750,000 was set aside to work on the most critical projects. Already in FY 2017-18, the first phase of the City Hall roof replacement was completed. Other projects will include the City Council Chambers, remodeling of the Finance and Community Development areas, and Aquatic Center repairs. nm tent4i hrnpacts &nd Issues There are potential future demands that could increase costs in this fund; however, resources will need to be closely monitored. Potential future demands include: 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. Parks& Facilities Maintenance As demand continues to grow for the public's use of City parks, additional burden is 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. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 6 87 Building Inspection Fun &i1&,i fro� rri Status Quo wrriI bilin • Permit revenues have shown slight decrease in FY 2016/17 • Additional position approved in FY 2014/15 Supplemental Budget, currently unfilled 900,000 Building Inspection Fund 800,000 II� 700,000 l , 600,000 .� I Mat&Svcs 500,000 400,000 Revenue 300,000 ', Fund Ck zk 200,000 Ck Balance 100,000 .tii iY zk zk tE 17 2017118 2018 19 20 2015 16 2016 - .. 3 - 19-20 2020-21 2021-22 2022-23 Actual Actual Projection Forecast Forecast Forecast Forecast Forecast The Building Inspection team provides services to ensure safe building design and construction through the enforcement of building codes and standards. 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. te,iLi hrrq a t &,id 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. The Building Fund, of course, will be significantly impacted by the Urban Growth Boundary expansion. Approximately 50 percent of the Woodburn School District 2015 voter approved bond measure allows for significant construction work to all the school buildings for repairs, additions and two new schools. The school bond will impact the Building Department workload and revenue over the next five years , and also require additional staff and vehicles. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 7 88 Transit Fug ar4nfroi n Status Quo wii nllotion • Reduction of one FTE in May 2017 Key Asswnnpbo�ns • Ability to continue to obtain grant funding • General Fund contribution remains stable for forecast period • Fares remain consistent for forecast period 1,000,000 Transit Fund 800,000 IIIIIIIIIIIIIIIIITra nsfers 9 .Iil I .i il ..... ::::::::::::::::::::::Capital Outlay ..' � II� .Mat&Svcs . 600,000 II .il� II I..i Personnel Revenue I I III it I it 400,000 Fund Balance d , 200,000 w w 'd 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Projection Forecast Forecast Forecast Forecast Forecast Transit provides Dial-a-Ride services for disabled citizens and fixed route bus operations. It is funded by a contribution of$116,000 from the General Fund, with the balance obtained from fare revenue and grants. The City actively seeks state and federal funds and manages staffing and service levels to available resources. In May 2017 one full time position was eliminated to reduce costs and preserve a small fund balance. 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. 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 City of Woodburn Five-Year Forecast 2018-19 to 2022-23 8 89 Street Fug &i,i&,n hm�ri Statusa w-rq boi ,i • None oe-milling Posffioi,i 5,000,000 Street Fund 4,500,000 4,000,000 3,500,000 3,000,000 IIIIIIIIIIIIIIIIIIIITra nsfers Capital Outlay 2,500,000 M at&Svcs nnnnmotftfVPersonnel 2,000 000 l Revenue II� Fund Balance 1,500,000 I� lIlk 1,000,000 500,000 iI .... '4... ... 'I .... a .... .. 'I ..._......_......_......iw �IW .... �j' U li d^ r r :f; p::::s9R^'::s9R^:::r:: rd�^::s9R^::et v::dggm:d^':R'::d"k: :d"I;;m:d"k, F::::::i:::::::i:::::::. Met i::: i:::::::i::::::: i::::::: i::::' :::: �d::CIId::Cl;ld::l8; r:::::::::r:::::::::r:: r:::::::r:::::::::r:::::::: '6:r::::::::,r:::::::,,i �:::::::r:::::r::::::::,; N6:r::::,r:::::::,,i:::::: i:.:::::::i:.:::::::i.: a.:::::::i.::::::::i.::::: i.::::::::i.::::::::i.: i.::::::::i.:::::::: i::::::::::::::::i: ,:::i::,:::::::� :::: :::: d::IR^:::rggm::r^,;;': :d"I;;m::r i.: F.:::: i.: i::,:� '�tiY�::::::i,Y^�;k�i��'^��: �d�i��'^�;k�i��'^�;k�ia' �I��'^�;k�i��'^�;k�i��'^,';k: �d�ia'^�;k�i;;'^�;k�i;IW .,:I�;k�i„'^�;k�i��'^,';IR, ';:lil;'^�;k�i��'^�;k�i��'^:I 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Projected Forecast Forecast Forecast Forecast Forecast State gas taxes are the largest source of revenue followed by privilege taxes paid by PGE and NW Natural. Capl taal R-ojects Ill ii,omm m Il ii atii ig Reve,iues The next major capital outlay project is West Hayes Street from Settlemier to Cascade, and Hardcastle Avenue/Railroad Crossing Realignment. Fund balance accumulates in the fund in preparation of subsequent capital projects. ote,nL4i h-ri a t &,id 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, the financial outlook remains relatively stable. Privilege taxes are dependent on population growth and can also be impacted by weather patterns. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 9 90 Water Fug ...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ...................................................................: &iI&,i hm�ri Statusa w-rq b of ,i • Water rate study will recommend future rate increases o&-milling Posffioi,i Water revenues is primarily driven by consumption. The funds costs are a mix of fixed expenses for the systems and infrastructure required to provide water, plus variable operating expenses. The last water rate increase was adopted in 2006. Since then costs have steadily risen without a corresponding rate increase. The fund has been sustained through a combination of maintenance/capital project deferrals and the use of fund balance. Recognizing that this trend cannot continue, a rate study consultant was hired in FY217-18, with the goal of receiving rate recommendations in spring 2018. 4,500,000 Water Fund 4,000,000 Debt Service 7777— 3,500,000 IIIIIIIIIIIIIIIIIIITransfers 3,000,000 Capital Outlay .. 2,500,000 Mat&Svcs 2,000,000 i JI � iPersonne1,500,000l n: �:I' Revenue 1,000,000 500,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Projected Forecast Forecast Forecast Forecast Forecast :nt&iL4i h-ri a t &,id Issues As personnel, material and services costs continue to increase, levels of service will become difficult to maintain. The update of the Water Master Plan currently underway will inform future operating needs and may impact rates. Additionally, unknown capacity improvements predicated by the UGB expansion will impact future capital needs. City of Woodburn Five-Year Forecast 2018-19 to 2022-23 10 91 Sewer Fug .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................: &i1&,i fro� rn Statusa wirnIpboi ,n • None Sewer Fund 10,000,000 .14 Debt Service IIIIIIIIIIIIIII Tra nsfers OCapital Outlay 6,000,ODO N.N.Mat&Svcs �� it Personnel 4,000,000 %„,- 7; .i .q' I q q p q 4R. Revenue 2,000,ODO di: II Idd 16 L: i'i i'i i'i i' Fund Balance i�i�i��li 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actual Actual Projected Forecast Forecast Forecast Forecast Forecast t&iL4i hii pact &,id 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 Molalla-Pudding River Sub-basin. The Molalla-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. 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 City of Woodburn Five-Year Forecast 2018-19 to 2022-23 11 92 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 2018-19 to 2022-23 12 93 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 FY 2018-19 budget cycle. ii n nii nii ig Fwnds The remaining 19 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 2018-19 to 2022-23 13 94 Majar AssurnipBill l .................................................................................................................................................................................................................................................................................................................................................................................................................................................................. The assumptions for this forecast are based on historical trends and expected growth. 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 The Marion County Assessor determines the taxable assessed value of each property. In Oregon, there is no correlation between real market value and assessed value. Generally, assessed values grow by 3 percent 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 and has steadily improved in the last three years.The City's tax rate is permanently set at $6.0534 per $1,000 of assessed value, and is subject to limitation under Ballot Measures 5 and 50. 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 percent to 8 percent. Franchise fees are assessed on telecommunication, cable television, natural gas, electric utilities, ambulance and garbage. These revenues are expected to grow at a rate of 2 percent for the forecast period. Charges for Goods&Services— Utility User Charges Water: The forecast assumes a 2 percent annual increase due to typical new development. Water rates are currently under review, and will likely result in a rate increase recommendation. Sewer:The forecast assumes a 2 percent annual increase for growth.The last rate increase adopted by City Council was effective July 1, 2014 at 9.5 percent. Gas Taxes The State Gas Tax is estimated with a growth rate of 2 percent 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 2018-19 to 2022-23 14 95 Major Assumptions — Expenditures • Wages: Assumed to increase by 3.75 percent per year across all funds and all labor groups. This is a conservative estimate which takes into account bargaining agreements and merit increases. Bargaining Group FY FY FY 2017-18 2018-19 2019-20 Woodburn Police Association—Officers(WPA) 3% 2.75% 2.5% Woodburn Police Association—Community Service Officers (WPA) 4% 4% 2.5% American Federation of State,County,and Municipal Employees(AFSCME) Varied 2% N/A • Insurance:A growth rate of 10 percent is used for insurance costs in the first year, and 12 percent used in years 2-5. • PERS: Rate assumptions vary somewhat by fund,with an average rate of 28 percent used for the first year, and 25 percent average growth rate applied to years 2-5. Impacts of inflation are assumed to steadily increase over the five years at 3 percent. 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 liability 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, which 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 2018-19 to 2022-23 15 96 Glossary 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 forestlands City of Woodburn Five-Year Forecast 2018-19 to 2022-23 16 97 iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliillillillillilillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillillillillillilliillillillillillillilliillillillillillillilliillillililllillillilillillillilI LZ JNNUNi 22,20II 11OW 11 ii III I MINI I I MINOR III I What is Public Art.? A simple definition of public art is an artwork or element of design that is either temporarily or permanently located in public viewing space and which responds to or is informed by the site. Public Art includes all for of original works of art accessible tote public and/or public employees. Public Murals includes works of art, such as a painting, applied to and made integral with or attached to a wall or building surface that is visible to and accessible to the public and/or public employees. uuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu�uiuiuiuuuiuii�»tail»I»l��i�y�yy�rr�n�»1��l��imii�iiy���uiu1»l�il»1��1�x���a�«<iiuuiu�»�»�»1��y1�ir��n�»�»�»1��l��imii�i�i�i�i�i�i�i��a Mission a SII The Woodburn Public Arts and Mural Program will facilitate the creation, placement . jundingpublic rt projects that inspire and delightvisitors and communitymembers Woodburn. ����Iur, pose alind Intelint.: The intent of the Woodburn Public Arts and Mural Program will enliven public space, promote identity and sense of place, and contribute to a vibrant and engaging community and will contribute to the economic vitality of Woodburn and be integral to its livability. The Public its and Mural Program is will be a transparent public process for commissioning and acquiring art for public viewing. r r Progrann GoaIIIII The desire to establish a Public Arts and Mural Program was initiated by the City of Woodburn Urban I accomplish Engage peoplea capture the cultural diversity andhistory urn. incorporate public art into the designof streetscapes, pedestrian pathways, buildings, gateways, parks and gatheringlaces. Promote lic arts and local artists. Enhance o r 's quality of life through art. Create visual improvements and attractions to the community. Support economic development and tourismactivities and programs. uuuuuu uuiuuuuuiuiuiuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuiiiiiiuuuiu�»ee»ei�iaiae/ia��i��e�nil»iiii»1��l�emii�ieeeeaeel�l�e�r�rrltl»�»1��e�r�rlrflia r r Pm ed mw a „mii t s to irww .d,i n(, .nce... 249 1 .- An Ordinance establishing a public arts and mural program creating the Woodburn Public Arts and Mural Committee and providing for a process for the City's consideration of public arts and murals uuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuui r r IIII III X1 6 IIS illlllllll NIIII IIIIIIIIfI TIII @: Program Oversight.- City's Economic Development Department will provide program oversight. Section 1 . Definitions Section I .A.through I .D. as been added. IIOPOSEIS AMIENUMENTS': IIIIIIIIIIIII Section 4. Composition of Woodburn Public Arts and Mural Committee Section 4.9. : Increase Committee participation from five members to seven-nine members. Expanded Committee participation may include: Two it Council/Urban Renewal Agency members o Two representative members from the local arts community () One member from the City Planning Commission o Additional members may include representatives from the Woodburn Chamber of Commerce, Woodburn Downtown Association,Woodburn Tourism Advisory Committee,locale cational institution,and at-large community member(s) r r PSV II. Section ® Selection Criteria: Section 8.9.: Electrical components ill be allowed as part of the designand/or placement of the art. Section 8. 10.: Maintenance of the public art or mural - section was added. uuuuui uuiiuuu������iuiuiuuuuiuuiuuuu������+iittr««iiuuiuiuuuu�ii�i���1rrU«a����u�1il��aiiiuiuiuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuui r r 110 IUB ID IE NTS: IIIIIIIIIIIIISection Section .: Legal instrument of conveyance — section added. Section 9.3.: Funding sources - section added. Section 9.4.: City owned property placement — section added. Section 10. Application Fee: Reduce application fee t 100. Refund fee if application withdrawn — added. 011111111111111111111 UUUDyJlll1111!lIJIDIIJlJJ1J///%/U9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/9/%/y�yA110117111(lfflllllllllll111111111111J1JJlJJ1J///%/U%/y�11011117111(lfflllllll111111111111J1JJ1 PR N im" IVIIIIII uWll E MLI IIWuni ,,. nnninnin W Section• • • • • Final • Section 16.B.: Location on Ciry-ownedr r i , final decisionit u ci — section added Section 19. Deaccessione, Sections 19.A.to 19.C. - added. uuuuui uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuiuuuu�uuuuuuuuuui�iuui�iiia�iuuiuu�uu�uui�uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuui 1 x Steps: City Council Approval of Amended Ordinance 2491 Review Public Arts and Mural Advisory Commission Role and uuuuuuuuuuuuuuuuuuiuuuiuuiiiuuuuuuuuuuuuuuuuuuuuuuiuuuuuuuiuuuuuiiii �iuu�pau��auiuiiuiiiiuuu�s�rrr������«iiuuuuuuuiuuiiuuu��������������muuuuuuuuuuuuuuuuuuuuuuuuuuuuuuiuuiiuu���aaak�������«iiuuuuuuuuuuuuuuuuuuuuuuuuu r r UPDATE Presented to City of Woodburn Council January 22, 2018 SERVICES%00? REPUBLIC We'il handle it froiT-i earsµ„”' Jason Jordan, General Manager Jay Lawson, Operations Manager Therese McLain, Municipal Manager Republic — a unique partner • We are the largest municipal collection in the country • Municipal relationships make us stand apart from other trash and recycling companies REPUBLIC SERVICES WWII handle it from here""' National — Strong backing ---------------------- uuu m Ib uum II ,E, 3 BEST Q M^"" a + IIVVVVV IIIIIIIIIIIIIIII C�AL PLA ESTOWORK -2018 for LGBTQ Equality cm C 0 110mu mu°G ORD mii ® � WWW Ids, 14 11-11 S IIS'H Illi;,FI!E. 0 INA 2% better f t ➢wu�ti �,ttuoin uuu�,ri immix 4u� Vuoop at ip �somr` ��i 'wm6 �aupi�a� w�ro� ll�o�r fpmio� 1\btu +mnuu� erformance HIGHEST Relp ",'' RATED rarlu auara , (tiara; zcrr afar Nral 5a f Unleashing t et o n t I C 1within artcf heaf frrrtnk ea ror Z t,,far fhe CEOs 'Pa years Republic's Oregon Economic Impact E"', C,�N C; "I �A I I I", »l A T J' + Als% 111/100/11/hIP AP m 1010041111 1111011,0111SPI I (010/m/ "VeN, Or IM to rw f elWgl�gliffllV Pp + fillhampoo, (Psaw $77M 11400 : $99M 121% 1.8 : $8. 5M .$59, 1000 MEN Recycling current events * China Market Sword • Decrease contamination campaign E m pty. Cl � . Dry. REPUBLIC • SERVICES ' We'll handle it from here"` �aaaiaoorrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr e yypjt /� r 4 w it n c o r o r a t e d 4 8 89 a a Partnering in the alleyways aa a m �beautification project 4 REPUBLIC SERVICES Before photo of an alley Wel II'andleitfrom here" i Partnering 'in the alleyways beautification project M , SERVICES We'll Itandle'Irtfrom here"' After photo of an alley r r N . Celebrating community and diversity u REPUBLIC SERVICES m We'll handle IC from here" c' «nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnr Listening to Woodburn 's leaders , businesses and residents • Bulky Waste Day • Holiday Tree Pick Up • Waste & Recycling Education • Touch-a-Truck School Visits (new) • Culturally and language-specific recycling engagement in partnership with FHDC *"'tt SrRVICES LI " ``-E We'll handle'iafrom here," Supporting local good causes 2017 sponsorships and in-kind donations: $43TOOiaitoo Partial List Chemeketa Cinco de Mayo Mother's Day Event Christmas Trees yard boxes Public Works/Young St. Commerce Way Santa is Coming to Town Community Thanksgiving Dinner Tulip Festival Estates Clean Up Waste Water Treatment Plant Father's Day Event Woodbirn High FHDC Anniversary Woodburn City Cans Fiesta Mexicana Woodburn Library Holiday Transit Woodburn Police Department Kiwanis Breakfast Woodburn Pool Love, Inc. Woodburn Proud REPUBLIC SERVICES We'll handle It from here'" �aarraaoorrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr Our local drivers - our heroes "Safety first" mantra. SAFE /t';,the Eight t'h;/,r! Meet driver Shawn ! REPUBLIC SERVICES We'll handle It frorn here'" nuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum THANK YOU FOR YOUR VALUED PARTNERSHIP !