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Minutes - 09/13/1999 COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING 0001 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, SEPTEMBER 13,1999. CONVENED. The meeting convened at 7:05 p.m. with Mayor Jennings presiding. 0007 ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Jennings Bjelland Chadwick Figley Kilmurray Pugh Sifuentez Present Present Present Present Present Present Present stafr Present: City Administrator Brown, City Attorney Shields, Public Works Director Tiwari, Community Development Director Goeckritz, Park & Recreation Director Westrick, Police Chief Null, Finance Director Gillespie, Public Works Manager Rohman, City Recorder Tennant 0027 Mayor Jennings stated that he will be calling for an executive session on the litigation issues after agenda item 8 rather than waiting until agenda item 17. The executive session on the City Administrator's performance evaluation will continue to be agenda item 17b. 0041 CHAMBER OF COMMERCE REPORT. Scott Cummins, representing the Chamber of Commerce, stated that the annual Chamber Golf tournament will be held on Friday, September 17th, and there is still an opening for a team. The Chamber is also sponsoring Business Week in Woodburn (October 18 - 22) and classes along with industrial tours will be offered during that week. The Business Week showcase will also be held that week at the Woodburn Armory. This year's corporate sponsor is the Big 3 auto dealers (Hillyer's, Miles Chevrolet, & Hershberger Motors). He also informed the Council that there will be a change in the Chamber's office hours to 9:00 am to 5:00 pm effective October I" and the office will be open during the lunch hour. Page I - Council Meeting Minutes, September 13, 1999 ~' -""._... .-,.~_._.~ _.__... .,._,.",~-_..._- ....,_...,..~........~."-..._.~--_.._~.,,.- -......., COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING 0076 ANNOUNCEMENTS. A) Public Hearing: Vacation oJstreet right-oj-way. On September 27, 1999,7:00 pm., the City Council will hold a public hearing of the vacation of street right-of-way for a 100 foot strip south of W. Hayes Street and behind Columbia Drive. B) Public Hearing: Comprehensive Plan amendment. On October 11,1999,7:00 pm., the City Council will hold a public hearing on a proposed comprehensive plan amendment incorporating Parks and Recreation updates. C) Continuation oj Public Hearing: Site Plan Review #99-05. The City Council will continue the public hearing regarding SPR #99-05 (Stein Oil Company) on October II, 1999,7:00 p.m., in the City Hall Council Chambers. 0097 LIVABILITY TASK FORCE REPORT. Administrator Brown stated that the Task Force had began its work in June 1999 and a memo was included in the agenda packet outlining programs that have been accomplished to date and on organizing itself on program delivery. The Task Force has established a mission statement along with defining "livability" by preparing policy statements. The Task Force is recommending that the Council accept the policy statements and promote them in everything that the Council does when guiding the City's future direction. General categories established by the Task Force are as follows: Community Pride, Sense of Community, Activities and Events, Services, Transportation, Jobs and Economy, Environment, Structures, Education, and Public Facilities. He also read the policy statement for each category to share with the public the Task Force's feelings on livability issues. The Task Force will be focusing on areas in which they believe they will have some direct impact and in the other areas they will be supporting the other agencies or committees focusing on those issues. Categories they will be focusing on include community pride, sense of community, community activities, community services, and public facilities. Primary projects to be worked on between the fall of 1999 and spring of 2000 include: Fall clean-up day, I celebration yet to be determined, develop volunteer structure and resource base, promote and/or establish a Saturday Market, hang flower baskets along Highway 99E, assist the Police Department with code revisions and developing a wide-reaching community education program regarding the Code Enforcement regulations, and a Spring Clean-up Day. Pete McCallum, Livability Task Force Co-Chair, stated that the Task Force worked to define livability and they were focusing on Woodburn rather than other communities. The Task Force will continue with the direction set by the Council as long as the Council continues to emphasis and support livability issues. On behalf of the Task Force, he thanked Administrator Brown, Police Chief Null, and Management Analyst Matt Smith for all of their work on this project. He feels that the Task Force has developed a document that can be changed and at this time, covers what the Task Force sees as important issues. A crucial component of this project is to develop a volunteer base and Page 2 - Council Meeting Minutes, September 13, 1999 ......- "-''''- -- ""......._--_.~..._-'-~.__.~ "'" COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING the Task Force will be looking to the churches, schools, service organizations, business community, and neighborhoods to join with the Task Force in promoting and volunteering to make this project a success. Another component is education since there will be code regulations that will need to be enforces and they hope that citizen education will help to promote a sense of community and pride. Nancy Kirksey, Livability Task Force Co-chair, informed the public that their first project will be held on October 23'd in conjunction with the Woodburn Downtown Association tree planting and beautification project. The Livability Task Force will be hosting an open house at the Community Center and providing volunteers with garbage sacks and dumpsters will be available at specific locations. There will be flyers forwarded to businesses, churches, service organizations, etc. to recruit volunteers to participate on this project. She stated that more information will be made available as the details are finalized. She encouraged residents to participate and help make Woodburn more beautiful. Councilor Kilmurray thanked the Task Force and the staff for all of the work accomplished to date since, by reading the report, it shows that the group thought through the process in order to develop a program that can be implemented. FIGLEYIPUGH... Council support and endorse the program of the Livability Task Force. The motion passed unanimously. 0542 PROCLAMATION: LATINO HERITAGE MONTH. Mayor Jennings stated that the Woodburn School District title IA & IC Parent Advisory Committee will be hosting a special performance by Ballet Folklorico of Puebla, Mexico, on September 14, 1999 from 7:00 pm to 9:00 pm in the High School gymnasium. The performance is free and coincides with the annual Hispanic Heritage month and Latin American Independence Day celebrations throughout Oregon. The school is asking for the public's participation by attending this event which is sponsored by the Mexican Cultural Center of Oregon and Woodburn Public Schools. 0606 Mary Graves, Woodburn Company Stores general manager, requested Council assistance in working with the Oregon Department of Transportation (ODOT) to fulfill their obligations relating to traffic. She stated that Woodburn Company Stores has done everything that they were required to do relating to improving the traffic flow both in and out of the center. As of this date, ODOT still has not installed the sign bridge that would cue traffic into the two or three traffic lanes of as motorists approach the interchange. Additionally, the interconnect has not been activated between the signals which is also a concern. She stated that she has talked to ODOT regarding these issues and they stated that they would install temporary signage, however, even that has not been done as of this date. Traffic is still significant on the weekends for visitors to the center and it will continue to be significant as the holiday season approaches. She stated that traffic flows Page 3 - Council Meeting Minutes, September 13, 1999 .,-....- . - -~".~~,_._.._._".._---....-..,.._-_..-,-...,,-_.*.,----,,-_.."-_.~--.....- COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING quite well getting into the center, however, traffic issues are evident for those visitors leaving the center. Administrator Brown stated that staff had met with ODOT in June 1999 on the specific issues of the sign bridge and interconnect. The costs of the sign bridge were to be shared by the City, Woodburn Co. Stores, and ODOT. He stated that the City has offered to pay approximately $55,000 towards the cost and have encouraged ODOT to get the sign bridge done before the Thanksgiving holidays rather than waiting for February or March 2000 which is what ODOT preferred as a delivery date. Staff will continue to encourage ODOT to speed up their time frame to install the sign bridge. In regards to the interconnect, the City has offered ODOT a portion of the funding to get the interconnect done more quickly and have offered them an abandoned city sewer line as a means of providing a conduit for the line between the east and west side of the freeway. The City is also waiting for ODOT to make a decision on this issue. Steve Craig, developer of Woodburn Company Stores, stated that the issues before the Council are now with ODOT. He stated that his company has designed the sign bridge since ODOT did not have time to design the sign with the understanding that their costs for designing would be deducted from their share of the project. The drawings have been approved by ODOT but no action has been taken by ODOT to either install permanent or temporary signs. Councilor Pugh suggested that a sign directing traffic to the appropriate lane for either 1-5 northbound or southbound would relieve a portion of the traffic back-up on Arney Road. Mayor Jennings stated that, without the sign bridge, motorists do not realize that there are two lanes of traffic on Woodland Ave and he requested that the Council consider sending a letter to ODOT to remind them of what they had promised in July 1999. It was the consensus of the Council that Administrator write the letter for the Mayor's signature. 0925 CONSENT AGENDA. A) Approval of regular and executive session Council minutes of August 23, 1999; B) Review of draft Planning Commission minutes of August 26, 1999; C) Approval of claims for the month of August 1999; and D) Receipt of the Building Activity Report for the month of August 1999. FIGLEYIPUGH... consent agenda be adopted as presented. The motion passed unanimously. 0933 EXECUTIVE SESSION. FIGLEY/PUGH... move into executive session under the authority of ORS 192.660(1)(h) and ORS 192.660(1)(t). The motion passed unanimously. The Council adjourned to executive session at 7:35 p.m. and reconvened their meeting at Page 4 - Council Meeting Minutes, September 13, 1999 ''''''-" ._,. "u__._.___.."_.__..~_____'~._~_".__~" - - COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING 8:19p.m.. 0951 Following their return to the meeting, Mayor Jennings stated that no decisions were made by the Council in executive session and only items pertaining to litigation were discussed. 0967 INFORMATIONAL PUBLIC HEARING: ESTABLISHMENT OF REIMBURSEMENT DISTRICT FOR IMPROVEMENT OF TRAFFIC SIGNAL ON HIGHWAY 219 AT WOODLAND A VENUE. Mayor Jennings opened the informational public hearing at 8:20 p.m.. He informed the public that it is the City's position that it is not a land use action and consequently the Chair will have some latitude in conducting this informational public hearing. Public Works Director Tiwari presented the staff report which incorporated general information relating to both informational public hearings being held at this meeting and specific information that pertained to this particular improvement project. He stated that all property owners in the proposed reimbursement district have been informed by regular and certified mail. The report is included in the agenda packet and he reminded the Council that they can either accept, deny, or modify the report. Specifically, this engineering report analyzed project costs prior to formulation of benefitted cost allocations to properties within the reimbursement district. It was noted that the report was developed within the guidelines and requirements of City Ordinance 2237 which established the reimbursement district process. Director Tiwari briefly reviewed the cost sharing methods used by the City in the past for other projects: local improvement district, private agreements, and reimbursement district. Properties in this reimbursement district are (I) the developer's property, (2) previously conditioned properties; and (3) future developable properties. He stated that his report does exclude property owned by the Oregon Dept. of Transportation since, based on legal advice from our attorney, it cannot be included in a reimbursement district. He noted that the property could have been assessed if a local improvement district had been formed. Property owners of developed land are Waremart, Offspring (Hershberger), and Craig Realty Group (Woodburn Company Stores). Future developable land owners include Mr. Baker (parcel 2 - southeast corner of Arney Rd), and Moore Clear Company (parcels 3& 4 _ north side of Arney Rd). He stated that there had been previous discussion of including the owner of Miles Chevrolet but it was later decided not to include it as part of the reimbursement district since they had given property for the widening of the street and had also built a portion of the roadway. In regards to the traffic signal project, the initial project cost submitted by the developer was $160,263.00. Staff reviewed the costs and found that a portion of the costs included in the roadway improvement project should have been included in the traffic signal project. The additional costs plus application fee brings the final project cost to $176,266.00. The report allocates cost distribution on a combination of square footage of land (75% factor) and projected vehicle trips (25% Page 5 - Council Meeting Minutes, September 13, 1999 I -...---..-.------.. w .. COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING factor). Of the total cost, the Baker property would pay 2.9%, Moore Clear Co. property 5.34%, Craig Realty property 38.47%, Offspring property 3.18%, and Waremart property 50.71 %. As part of the proposed reimbursement agreement with Craig Realty Group, the developer would pay the City 1 % as an administrative fee and interest rate charged to property owners until such time as the reimbursement fees are paid will be 8.25% computed at simple interest and would start accruing 30 days after the effective date of the Council Resolution. In his opinion, his report outlines a cost allocation method that is fair to all parties. 1760 Steve Craig, Craig Realty Group, stated that he had initially tried to get private agreements with the other property owners but this approach did not work. He stated that the two property owners who were, in his opinion, extremely fair and reasonable to work with were Waremart and Warde Hershberger. This project was complex and it involved not only private property owners but other outside agencies. The original proposal by his company was to allocate cost based on land area and, after reviewing the report, stated that he is in agreement with the allocation method used in the report. However, he would like to add the following provisions to the Resolution: (I) paragraph 6: exclude from such indemnity fraud, gross negligence, and wilful misconduct on the part of city staff or elected officials; and (2) paragraph 10: an extension of time be placed in the Resolution to allow the City Council the right to extend the time period from 10 years (2009) to 20 years (2019) if such property owners that were part of this district still had not improved their property. He requested that these modifications be made in both proposed Resolutions 1553 and 1554. He also wanted to share with the Council and representatives of property owners in attendance at this meeting that his company had paid an additional $30,000 in engineering costs plus the administrative fee which are not included in the reimbursement district. Overall, he feels that his company is paying their fair share for improvements which were made in a timely manner. 2146 Don Kelley, attorney representing Dale Baker, proposed that any testimony given in this hearing would also be made a part of the record for the second public hearing. Attorney Shields stated that an informational public hearing has been scheduled for each reimbursement district and the Public Works Director will give a presentation on the Arney Road improvement following this hearing. Attorney Kelley stated that most of his remarks would be directed to the Arney Road extension, however, he did not want to waive any of their rights by not making a lengthy presentation on each issue before the Council. He stated that, in his last conversation with Mr. Baker, notice of the hearing had not been received. He also informed the Council that he had brought a court reporter to these hearings for the purpose of providing him with a written record since he had 3 prior instances in which the tapes were not clear or blank. In his opinion, the underlying ordinance (#2237) is in violation of both the Page 6 - Council Meeting Minutes, September 13, 1999 - " COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING United States and Oregon constitutions. Specifically, there is a considerable amount of law governing the local improvement district process whereas the reimbursement district is not included in these laws. He feels that the reimbursement district takes away the rights of a property owner to remonstrate nor to provide a financing tool in which to pay off the costs allocated to each property. He also expressed his opinion that this district was formed as a result of a condition within a land use decision, therefore, the provisions of Ballot Measure 56 should have been followed. He feels that the pending Council action takes away the property owners' rights to develop their property until after they pay the reimbursement fee. He also argued that the traffic signal does not benefit Mr. Baker's property since it would be more valuable if it were not blocked the way it currently is and the only reason for the traffic signal is to take care of the excessive traffic flow created by Woodburn Company Stores. Mayor Jennings questioned if the Arney Road improvement and signalization projects were part of the City's Transportation Plan. Director Goeckritz stated that the projects were part of the Transportation Plan and that they were not site specific. 2660 Alan Spinrad, attorney represent Moore Clear Company, stated that he has some of the same concerns as expressed by Attorney Kelley. In his opinion, the underlying ordinance was passed for the benefit of the developer and it is a site specific ordinance rather than one passed for general application. His client did not even know about the ordinance until the notice was received on September 3, 1999. He stated that the City had been clear in their condition of approval and had also included a provision to have a local improvement district established. He feels that a violation of due process and equal protection has occurred. In their opinion, the improvement costs to be allocated far exceed what would have been required if they were to have developed their property prior to the development of Woodburn Company Stores. He also objected to the establishment of a reimbursement district since costs that should have been allocated to ODOT are now being shared by all of the other parties whereas the establishment of a local improvement district would have allowed the inclusion of ODOT as a property owner. He reiterated that the local improvement district would have been the proper method to follow rather than the reimbursement district. He also stated that, for the record, he wanted these comments to be included in the record for both matters before the Council. 2922 Jim Parker, representing Waremart Foods, stated that Waremart does take exception to the methodology used in calculating the cost sharing. They do not dispute that some cost sharing is appropriate and they feel that they should not pay 50% of the traffic signal when the traffic generated only amounts to 10%. He requested that the Council not approve the reimbursement district in its present form and that it be modified. Page 7 - Council Meeting Minutes, September 13, 1999 r^^-^----^-^-----..-..-----' . , COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING Mayor Jennings questioned if Mr. Parker was aware that a Waremart representative had previously committed to pay 50% of the cost. Mr. Parker stated that he was not aware of the previous commitment. Tape 2 Steve Craig stated Paul Simmons, Vice President of Waremart, had agreed to a specific amount for that improvement. In regards to a statement on land size made by Attorney Spinrad, Mr. Craig stated that the retail portion of the development is 232,000 square feet. He stated that Craig Realty was not against a local improvement district but the costs involved in establishing the LID (legal and bond underwriting fees) would far exceed the cost of the improvements being contemplated. He stated that he would not object to looking at the LID process if the other property owners wanted to encumber their property with a larger amount and have the ability to pay over time. He also felt that Mr. Baker's property has not reduced in value since his development has generated more activity as a result of the Woodburn Company Stores development. Lastly, Moore Clear Co. had approached Craig Realty to finance their portion of the develop costs and his company had reached an agreement to finance over a 3 year period with no interest. After they had agreed to do it, they subsequently disagreed that they agreed. Attorney Kelley stated that their clients had met with Craig Realty Group several times and at each meeting, the costs of the projects continued to escalate. Steve Craig stated that original discussions with the property owners started with an estimated cost of $160,000 for a traffic signal and for street improvements to Arney Rd of $450,000. After all of the conditions were met, the traffic signal reimbursement cost submitted was $160,000 although some adjustments were made that increased the cost to $176,000. The substantial change relates to the Arney Rd extension which ultimately required more improvements than what they had originally planned. Public Works Director Tiwari stated that Mr. Baker did receive notice of this hearing on September 4, 1999. He also stated that reimbursement district has been used in a lot of places and that the City does have one in place for water and sewer reimbursements. In regards to the concerns expressed by Waremart, he felt that he has given the appropriate distribution of costs. Lastly, the project costs do not include engineering costs which have been borne by Craig Realty Group and are not part of the reimbursement district. Mayor Jennings questioned which cities currently have reimbursement districts in place. Attorney Shields stated that, to his knowledge, Tigard, Gresham, Tualatin, and Fairview have reimbursement districts. He also stated that the Public Works Director had mentioned his legal opinion which was addressed to the Mayor and Council and dated March 24, 1999, Memorandum Opinion #99-02, and he formally put the opinion into the record. Mayor Jennings declared the informational public hearing closed at 9:26 p.m.. Page 8 - Council Meeting Minutes, September 13,1999 -- '-'-"'~"-"----'-""'-"~"'~--'--""---'- .. , COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING 0378 INFORMATIONAL PUBLIC HEARING: ESTABLISHMENT OF REIMBURSEMENT DISTRICT FOR ARNEY ROAD WIDENING. EXTENSION AND STORM DRAIN IMPROVEMENTS. Mayor Jennings declared the informational public hearing open at 9:26 p.m.. Director Tiwari stated that all of the affected property owners have been properly informed as required by Ordinance 2237. He proceeded to give the Council his report which is also required by the Ordinance. He stated that in 1992, conditions were placed as part of a development proposal at that time that Arney Road would be widened, bikelanes, and sidewalks since it was considered as an arterial roadway and property owners should not have been surprised with the extent of improvements made to the roadway. The storm drain extension box culverts did add as much as $60,000 to the project cost. The options available for determining the method of payment are local improvement district, private agreement, or reimbursement district. He reviewed the roadway area included in the proposed reimbursement district. The City's engineering staff had evaluated the costs presented by the developer and staff determined that the cost to be used in the reimbursement formula was $806,526 versus the cost submitted by the developer in the amount of $863,144. The application fee of $1,000 increased the reimbursement amount to $807,526. In regards to the distribution of costs to the property owners, the report proposes a 60% allocation based on land area and 40% based on frontage. Of the total cost, the Baker property would pay 18.11 %, Moore Clear property 28.72%, Craig Realty 47.82%, and Offspring Holdings (Hershberger) property 5.35%. The staff has also proposed an interest rate of 8.25% which was the prime interest rate as of September 1, 1999 and an administrative fee to be paid by Craig Realty in an amount established by Ordinance 2237. In his opinion, it is fair to share the cost of the improvements between the benefitted property owners and he believes the costs have been fairly distributed. He reminded the Council that reimbursement districts have been established by the City in past years for water and sewer improvements. He recommended that the Council adopt the reimbursement district resolution without any changes. Attorney Shields stated that the legal opinion eluded to by Director Tiwari in his presentation was Memorandum Opinion #99-02, dated March 24, 1999 and previously distributed to the Council, and he entered this opinion into the record. 0809 Steve Craig stated that the traffic signal cost increased about 10% over the original estimates, however, the road extension project increased from his original estimate of $450,000 to $807,526. The original estimate was made prior to knowing all of the conditions and other requirements imposed by the State and Bonneville Power Authority. Subsequent meetings with the property owners did keep the property owners informed of escalating costs. He also stated that costs submitted were thoroughly reviewed by staff and, in some cases, costs deleted since they were not part of the Arney Road extension. Page 9 - Council Meeting Minutes, September 13, 1999 r . , TAPE READING COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 He reminded the Council that his company paid for all of the engineering costs which amounted to approximately $70,000 and his company will be paying an administrative fee of $4,518.92. Neither of these amounts are included in the reimbursement district. He also reminded the Council that, under the reimbursement district process, his company is financing this project until such time as the other properties are developed. If an LID was established, he would be paid for the work from the proceeds of a public improvement bond and the property owners would have to pay security interest against the property. As far as his company is concerned, they would like to get paid for work already done rather than waiting until property is developed. Don Kelley, attorney representing Dale Baker, expressed his opinion that there is a big difference between the reimbursement district and an LID in that a reimbursement district requires the property owner to pay the full amount of the reimbursement allocation before a permit is issued or any land use action is taken. The LID allows him to finance the costs over 10 years at a lower interest rate and use his property immediately. He also distributed some figures to the Council to show that every time his client met with the developer, the figures continued to escalate. He also requested a copy of Attorney Shields' memorandum opinion #99-02. He reiterated that, in their opinion, the ordinance and the process before the Council violates due process and equal protection under the US Constitution, specifically Article II under the Oregon Constitution, Ballot Measure 56, City extension of credit for the benefit of a private party, and violates the tax regulation measures. He questioned as to how much the City owes Craig Realty just because he has built a factory outlet center and he contended that the project was the idea of Craig Realty and all costs associated with roadway improvements to get to the center should be borne by Craig Realty. If this was an LID, he stated that the City would have considerable latitude in assigning benefits to property, however, it cannot be arbitrary. He questioned why traffic trips are not be included in the distribution formula. He also contended that Craig Realty is asking the City for credit for money already spent in relocating Arney Road that was located on their property. He objected to the reimbursement district ordinance being passed after the project was completed and questioned the public benefit in adopting an ordinance and/or resolution to pay for something that was already completed. In his opinion, the 60% land and 40% frontage allocation was not reasonable in that Mr. Baker is being charged for frontage that wraps around the old and new Arney Road. He reminded the Council that Mr. Baker is being asked to pay 18.11 % of the costs when he owns only 2.7% of the land whereas Craig Realty Group owns 80% of the land but would only pay slightly less than 50% of the costs. He also questioned as to why the ODOT, Sprague, Stampley, Miles Chevrolet, and City owned properties were not included in the reimbursement district since all of these properties will benefit from this improvement. He reminded the Council that there was a need for speed on the part of the developer and improvements had to be done within a Page 10 - Council Meeting Minutes, September 13, 1999 . , ~ __'__"___^_._"___'__'~_"""-'-'_~~_.'k.__,.~___~..,__,__.~~_..~_. COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING time frame that only applied to his development and it benefitted his project. The LID process could have been used had it been done prior to the construction being done. In regards to the Baker property, he stated that he did not think that he had said it was worth less money only that it was hurt by this project and does feel that it would have been worth more money if the roads had not been changed. He requested that the Council resist the invitation to consider other projects such as improvements Mr. Baker made to the Texaco property or the improvements that Craig Realty might have done that are not part of this project. For clarification regarding notice, he stated that to his knowledge, there was no notice given to his client of the adoption of Ordinance 2237 and, as of the last time he spoke to his client, he had not received notice of this hearing from the City. He had received a faxed copy from Moore Clear Co. which is how he learned of the hearing. A notice was sent by certified mail but it is hard to read the initials on the return card so they do not know who received the notice. Mayor Jennings stated that he did not want the record to show that the City did not send the document and if the Post Office obtained a signature on the card, then it was either Mr. Baker or his representative that signed the card. It was noted that the card was signed on September 4, 1999. Mr. Kelley concluded his remarks by acknowledging that he had said some things that some Councilors did not want to hear but this is about fairness and about the overall size and scope of the project. He does not believe that when the Council looks at the small area owned by Mr. Baker that the Council can honestly say that Mr. Baker should be taxed that much because of the frontage that goes around the curve which, in effect, doubles his frontage without giving him any additional space. He does not feel that he should be paying for 1/5th of a project whereas a large part of land located to the north is only paying for one-half of the project cost. They have had insufficient time to research this ordinance thoroughly and to research the resolutions thoroughly, to have the cost figures looked at independently by an engineer, and he asked that the Council continue this matter until he has had an opportunity to read Attorney Shields' memo and Mr. Baker has had an opportunity to see what went into this process. 1537 Al Sprinrad, attorney for Moore Clear Co., stated that the Gresham reimbursement district ordinance requires formation of the district prior to City approval of construction plans and, if developer proceeds before approval is given, the developer pays for full cost of the improvements. This ordinance is significantly different that the City of Woodburn's and there are issues of concern to his client. In regards to cost, the Public Works Director had also told his client that he anticipated that his client's share of the estimated cost for improvements would not exceed $100,000 - $125,000. Based on the figures in the report, his client is being asked to pay over $231,000. The developer may not have known about the need for the sidewalks or bikelanes but the Public Works Director did know of these Page II - Council Meeting Minutes, September 13, 1999 'r" -. . .. ~_._.-.._'...--~'-----" ~ , COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING improvements and his client was very surprised to learn that the cost share was almost double the original estimate. It is their contention that this project will be a very profitable venture for the developer and the roadway was built to accommodate traffic to the factory outlet stores. In his opinion, the ordinance is site specific, developer specific, in place of a required LID, and appears that it may be a cure for the developer's decision not to appeal the conditions of approval or to seek a LID. This process singles out 2 property owners to share huge sums of cost without giving them an opportunity to be present for the initial ordinance hearing. To date, all of the dollars spent regarding this road were spent by the developer and no public dollars are involved. He reiterated that the purpose of the roadway is entirely, solely, and completely for the factory stores and, even though there may be some benefit to other properties, the principal purpose was for those stores. He also suggested that the road would have been built even if there had been pre-existing businesses at the locations included in the reimbursement district. In his opinion, the Council has acted in a quasi-judicial manner and it is because of that quasi-judicial manner that the legal safeguards are more strictly required under both the Fasono case and Ballot Measure 56. In regards to his earlier referral to square footage of property owned by Craig Realty Group, the 1,700,000 sq. ft. comes from Attachment C to the Director's report. He noted that Craig Realty has 10 times the square footage of his client and yet his client has been allocated 28.72% of the cost of improvements. He also stated that the ODOT property located east of Moore Clear Co. has no benefit to his client nor will there be any other street access off of Arney Road on parcels 2 & 3 except from the private road that exists between them. He disagreed with the 60/40 allocation and suggested that costs allocated should be based on square footage alone. Another option would be to use the same formula as the traffic signal in which case the Baker property would be allocated with 4.65%, Moore Clear Co. with 10.83%,78.05% for Craig Realty, and 6.45% for Offspring(Hershberger). He also stated that Moore Clear Co. had given the City property in the southwest corner of parcel 2 totaling 5,024 sq. ft and 20 ft. of frontage, both of which numbers should be taken out of the calculations for Moore Clear Co.. Additionally, on parcel 3, there is a strip ofland approximately 10 feet wide and 179 feet long that is owned by the State and, if frontage is used, the State owns that frontage and not his client. He reiterated that it was not clear to him why his client should bear any portion of costs that should be ODOT's burden since the roadway has no benefit to his client or anyone to the west of that property. Therefore, the developer should bear the cost for that area. Since this process is being done after the fact, the City did not have control over the monies being expended for this project. He told the Council that when Moore Clear Co. developed the RV Park in 1988, the City had conditioned their approval on Moore Clear Co. not using available water and sewer facilities on the west side of the property. Instead the property owner had to bore under Arney Road and to provide a 15' easement on the east side of their property for the purpose of supplying water and sewer to future areas. He stated that his client has had to contribute the land and expend Page 12 - Council Meeting Minutes, September 13, 1999 .. --""-",-,-,",,,-,.,-,,,^,,,,,-,~--'--"'--"'._--"'".._._-_.'.._---~._-~~-- - . COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING significant funds for the benefit of the City. After the RV Park had been built, his clients had partitioned parcels 2 and 3 out of the existing RV park. Even though these two parcels are not developed yet, they had been the subject of actions by the City on two prior occasions and on neither of those occasions were they required to agree to contribute to future improvements. He felt that it was extremely difficult to justify the reimbursement methodology being proposed and he believes that there are difficulties with the ordinance and with the proposal in that a reimbursement must reflect the reality of this situation which is either square footage only or square footage and number of vehicle trips. 2354 Mayor questioned the location of the land owned by the City. Director Tiwari stated that it is the wetlands mitigated along Robin Avenue. He also stated that the State does own a narrow strip of land as stated by Attorney Spinrad but for the purpose of frontage, it was considered as if it was entirely Moore Clear Co. property since it was such a narrow strip of land (about 10 foot in depth). Councilor Bjelland questioned if the frontage on the Baker property wrap around the corner on Arney Rd.. Director Tiwari stated that a portion of the frontage does go around the corner since it is considered as developable land. Steve Craig stated that he is not asking for credit on this reimbursement district and they are paying 52.18% of costs included in the reimbursement district. He objected to comments made by the attorneys regarding his residence outside of Oregon in that he still has rights based on property owned in the City. In regards to the water and sewer lines, he concurred that the extension does benefit his property. When Hershberger Motors was developed, the water and sewer lines were widened and his company shared in that widening costs. He was also conditioned by the City to extend the water line from the Hershberger property north all of the way to the Urban Growth Boundary, under 1-5, north to King Road through the Senior Estates parking lot. This extension will be a great benefit to all of those property owners since currently the water pressure is not sufficient consisently enough to serve those properties especially in the even of a major occurrence. It is his understanding that the ordinance was adopted in June 1999 and the major improvements to the area were completed on July 22, 1999 with final improvements in August 1999. He stated that a proposal was suggested for utilizing trip generation as a component of the calculation. He would be happy to consider that option because trip generation charts would benefit his company since the a fast food restaurant would be two or three times more than the trip generation for his type of property use. He reiterated that it is very difficult to please everybody and he urged the Council to get this issue resolved. 2698 Brad Husbeth, representing Elmer's Restaurant, stated that he was a CPA and, in listening Page 13 - Council Meeting Minutes, September 13, 1999 T- "<_.._-"._'~~~---~.,---_.,.__._. COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING to the numbers being discussed, the costs to be allocated to Moore Clear Co. are excessive in relation to costs allocated to the developer (about 8 times more). He stated that his company is considering the placement of a restaurant on a portion of one of the parcels owned by Moore Clear Co.. Attorney Kelley stated that the Sprague and Stampley properties are part of the Urban Growth Boundary and inside of the city limits, therefore, these properties are slated to come into the City at some time in the future. He briefly read an excerpt from the report and stated that the City is still acting arbitrarily unless the report would explain how it avoids an unfairness to property owners especially in light of the amount of money owing by specific property owners. 2889 Mayor Jennings requested clarification from Attorney Shields as to why the Sprague and Stampley properties were not included in the proposed district. Attorney Shields stated that there is a court case that needs to be considered by the City (City of Klamath Falls vs Lewis) and it rules that a reimbursement district must follow the boundary of the incorporated city. Attorney Kelley expressed his opinion that the legislation before the Council would not affect these properties until they come into the City since they could not apply for a permit until they were in the City, and the Urban Growth Boundary agreement with the County expressly gives the City an interest in the property between the City boundary and the Urban Growth Boundary. Public Works Director Tiwari briefly reviewed the following issues that were brought up during this hearing: 1) Trip generation: The Arney Road improvement district involves all commercial properties and some commercial activities, such as fast food service, involve intensive traffic generation. 2) Frontage and square footage methods were combined since the benefit is greater for those properties that have both frontage and land area. 3) ODOT was a judgmental decision and under the reimbursement district they are not included in the cost allocation. Overall, the property owners of the properties west of the ODOT property will benefit by the development of the factory outlet stores because of the traffic flow and that has been considered by staff in preparing the report. 4) In regards to the estimated costs to Mr. Bush (Moore Clear Co.), he stated that the full engineering plans had not been completed at the time and many things occurred which changed the numbers originally estimated. 5) The extension of the utilities by the RV Park is common practice in that the lines are extended from one end of the property to the other and the next developer does likely. Craig Realty is also required to extend to the north end of his property and Mr. Craig would prefer not to bore under 1-5. However, there is a cost share involved with the City Page 14 - Council Meeting Minutes, September 13, 1999 r- .- "'-""-"--"""-'-'-"'~-""'-~'-- I 1 COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING for this connection project to King Way and ultimately all of the properties to the west will benefit from this extension. 6) The Reimbursement District ordinance was passed on June 28, 1999. 7) The public benefits in that there is better traffic flow in the area and public safety. These improvements are identified on the City's Transportation Plan and Arney Road is identified as an arterial roadway. Mayor Jennings questioned what improvements would be required if the fast food restaurant was built without any other development to the north. Director Tiwari stated that the road improvements would be similar as far as the frontage is concerned (turn lane, bike lane) with the difference being that the road would be built piecemeal. Councilor Bjelland questioned if improvements were made on the old Arney Road section (Baker frontage) that were included in the costs allocated in the reimbursement district. Director Tiwari stated that there were improvements made on the old Arney Road to the new road abutting the north side of the Baker property. 0257 Mayor Jennings stated that no action is necessary by the Council at this time since there are Resolutions to be considered under General Business. Mayor Jennings declared the public hearing closed at JO:50 p.m.. 0265 COUNCIL BILL 1988 - ORDINANCE AMENDING THE COMPREHENSIVE PLAN TO INCORPORATE CERTAIN GOALS AND POLICIES RELATED TO ANNEXATION AND GROWTH MANAGEMENT. Council Bill 1988 was introduced by Councilor Chadwick. Recorder Tennant read the two readings of the bill by title only since there were no objections from the Council. Councilor Bjelland referred to page 6 (M-JO) and questioned if the third sentence should read "".water and sewer facilities shall not be extended".". Director Goeckritz stated that there is an typographical error in that sentence and it should read "..shall not be..." . Councilor Bjelland also questioned the purpose of Annexation Policies D-2-2, 4 pp, on the top of page 8. Mayor Jennings asked Attorney Kelley if he would provide the City with a copy of what was recorded. Attorney Kelley stated that he would be glad to supply a copy of the transcript to the City. Director Goeckritz stated that this is a policy that was required when the City was looking at the Waremart site so the State said that if the City was going to do that it needs to be incorporated in the City's Comprehensive Plan language to protect the State. Page 15 - Council Meeting Minutes, September 13,1999 T -~_.._._.......~.,,_._,...___._,..,-o__...>. - - COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING On roll call vote for final passage, the bill passed unanimously. Mayor Jennings declared Council Bill 1988 duly passed with the emergency clause. 0445 COUNCIL BILL 1989 - RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ANNEXATION OF PROPERTY LOCATED WEST OF BOONES FERRY RD. AND SOUTH OF COUNTRY CLUB ROAD. Council Bill 1989 was introduced by Councilor Chadwick. The bill was read by title only since there were no objections from the Council. Councilor Bjelland questioned the need for the resolution to call for a public hearing. Attorney Shields stated that the resolution is a requirement within the state statute. On roll call vote for final passage, the bill passed unanimously. Mayor Jennings declared Council Bill 1989 duly passed. The public hearing will be held on October 25, 1999 at 7:00 p.m.. 0535 COUNCIL BILL 1990 - RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ANNEXATION OF PROPERTY LOCATED ON THE NORTH SIDE OF AZTEC DRIVE EAST OF HIGHWAY 99E. Councilor Chadwick introduced Council Bill 1990. Recorder Tennant read the bill by title only since there were no objections from the Council. On roll call vote for final passage, the bill unanimously. Mayor Jennings declared Council Bill 1990 duly passed. The public hearing will be held on October 25, 1999 at 7:00 p.m.. 0557 COUNCIL BILL 1991 - RESOLUTION ENTERING INTO AN INTERGOVERNMENTAL AGREEMENT CONTRACT AMENDMENT WITH CHEMEKETA COMMUNITY COLLEGE FOR PARTICIPATION IN CHEMEKETA COOPERATIVE REGIONAL LIBRARY SERVICE (CCRLS). Council Bill 1991 was introduced by Councilor Chadwick. Recorder Tennant read the bill by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Jennings declared the bill duly passed. 0584 COUNCIL BILL 1992 - RESOLUTION ESTABLISHING A REIMBURSEMENT DISTRICT FOR CONSTRUCTION OF A TRAFFIC SIGNAL PUBLIC IMPROVEMENT LOCATED AT HIGHWAY 219 AND WOODLAND A VENUE. Councilor Chadwick introduced Council Bill 1992. The bill was read by title only since there were no objections from the Council. Attorney Shields reminded the Council that the City has in place the enabling ordinance which provides for a 10 year maximum period and the Council cannot act by Resolution to amend the enabling ordinance. Councilor Pugh complimented the staff on the work accomplished on this issue. Councilor Figley expressed her thanks to the Public Works staff for doing a good job Page 16 - Council Meeting Minutes, September 13, 1999 r . , COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING under trying circumstances. On roll call vote for final passage, the bill passed unanimously. Mayor Jennings declared Council Bill 1992 duly passed. 0671 COUNCIL BILL 1993 - RESOLUTION ESTABLISHING A REIMBURSEMENT DISTRICT FOR THE IMPROVEMENT OF ARNEY ROAD. Councilor Chadwick introduced Council Bill 1992. Recorder Tennant read the bill by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Jennings declared Council Bill 1993 duly passed. 0702 COUNCIL BILL 1994 - RESOLUTION ENTERING INTO GRANT AGREEMENT NO. 17518 WITH THE STATE OF OREGON FOR PUBLIC TRANSIT FUNDS. Council Bill 1994 was introduced by Councilor Chadwick. The bill was read by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Jennings declared Council Bill 1994 duly passed. 0726 CONTRACT A WARD: BID NO. 99-28 (MISCELLANEOUS STREET RESURFACING IMPROVEMENTS). Bids for resurfacing a portion of Evergreen Road, Park Circle, James Street, Tierra Lynn, Amy Court, and Kevin Court were received from the following contractors: North Santiam Paving, $129,704.40; Salem Road & Driveway, $134,489.98; Morse Bros., $136,812.40; and Brix Paving, $152,494.40. Staff recommended the acceptance of the low bid from North Santiam Paving which was below the engineer's estimate of $138,216.00. FIGLEY/PUGH...low bid from North Santiam Paving in the amount of $129,704.40, bid no. 99-28, be accepted. The motion passed unanimously. 0740 ACCEPTANCE OF UTILITY EASEMENTS. Staff recommended the acceptance of utility easements from Charles and Neelie Schultz for installation of a storm sewer main in conjunction with the Miller Links subdivision. FIGLEYIKILMURRAY... utility easement be accepted. The motion passed unanimously. 0755 REOUEST FROM THE WOODBURN ELKS LODGE. Staff recommended that a request from the Elks Lodge for a partial street closure and the ability to sell merchandise from a vehicle parked on a street be allowed for October 2, 1999. The location for this event is 409 N. Front Street and involves blocking off 3-4 parking spaces between the hours of 7:00 am to 6:00 p.m.. Page 17 - Council Meeting Minutes, September 13, 1999 T' COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING SIFUENTEZ/PUGH... request be granted. The motion passed unanimously. 0770 REOUEST TO REMOVE TREE ON KING WAY. Property owners of 1681 and 1647 King Way requested permission to remove the two trees located within the public right-of-way and on their property lines. Staff recommended that permission be granted subject to the following conditions: I) Staff to notify property owners in the immediate neighborhood within next 30 days and removal can be authorized if no objections are filed with the City from the neighbors; 2) Property owners shall comply with Ordinance 1908 and shall replace trees with suitable species; and 3) No cost share by the City be provided by the City as allowed by Res. 1514 because the trees appear to be healthy. Councilor Pugh questioned if there was anything else that can be done in lieu of cutting down the trees. Mayor Jennings stated that he had done a site visit and he informed the Council that the trees will continue to deteriorate the curb and driveways and the roots are laying on top of the property owners' lawns. PUGHlKILMURRA Y.... accept the staff recommendation to the remove the trees subject to the conditions listed above. The motion passed unanimously. 0833 SITE PLAN ACTIONS. A) Site Plan Review 99-12 and Variance 99-08: Bridgeway Modular Unit (399 Young Street). No action was taken by the Council on this issue. B) Site Plan Review #99-13: Administrative approval of a 2,190 square foot addition to a warehouse located at 2519 N. Front Street. No action was taken by the Council on this Issue. 0856 CITY ADMINISTRATOR'S REPORT. A) Vision Insurance Coverage: Administrator Brown briefly reviewed the memo outlining the vision insurance coverage proposal for non-union employees. This coverage would be paid for by the employees through payroll deduction. There were no objections from the Council to adding the vision insurance coverage to the non-union health insurance package. 0893 B) Golf Carts in Senior Estates: Police Chief Null stated that the City Council passed an ordinance in 1983 which allowed golf carts to be used in Senior Estates for either going to the golf course or to Fairway Plaza. Those residents who lived outside Senior Estates could obtain a vehicle license to put on the golf cart and use it as transportation within the City. Recently, the Dept. of Motor Vehicles (DMV) has deemed that golf carts should Page 18 - Council Meeting Minutes, September 13,1999 r- ~ " COUNCIL MEETING MINUTES SEPTEMBER 13, 1999 TAPE READING not be used as a motor vehicle and licenses will be revoked. Staff will be coming back to the Council with a revised ordinance which will be consistent with the state law requirements. For transportation planning, future golf cart paths would need to be located outside of the roadway. He has asked his police officers to hold off for a 30-45 day period before enforcing this statute in order to give staff time to educate the public on the change in the law. Discussion was held regarding the licensing of electric vehicles and further clarification of how a golf cart can be used by residents in the future. 1158 EXECUTIVE SESSION. FIGLEYIKILMURRY.... adjourn to executive session under the authority of ORS 192.660( I )(i). Administrator Brown stated that he understands that he has a right to hold the evaluation in open session, however, he is waiving his right to the open session. The motion passed unanimously. The Council adjourned to executive session at II :22 p.m. and reconvened at 12:28 p.m.. 1190 Mayor Jennings stated for the record that no decisions were made in executive session. FIGLEY/KILMURRAY... grant the City Administrator a 7% annual raise with the effective date of October I, 1999. The motion passed unanimously. 1205 ADJOURNMENT. FIGLEYIBJELLAND... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 12:30 p.m.. APPROVED ATTEST J% -Z:::d Mary ~ant, Recorder City of Woodburn, Oregon " Page 19 - Council Meeting Minutes, September 13, 1999 I" .._- '-'-'-'-"'--'~-"--'-"-"~~~~'-""'-~-' .. ,