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Minutes - 06/30/1997 ""It COUNCIL WORKSHOP MEETING MINUTES June 30, 1997 TAPE READING 0123 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JUNE 30, 1997. CONVENED. The Council met in a workshop session at 7:12 p.m. with Mayor Kirksey presiding to review system development charges. traffic impact fees, and planning fees. ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh Sifuentez Present Absent Present Present Present Present Present Staff Present: Public Works Director Tiwari, Community Development Director Goeckritz, City Recorder Tennant 0135 Mayor Kirksey stated that the City of Salem voters will be asked to vote on a charter amendment for the purpose of increasing a number of city fees. including planning and building fees, as required by passage of Ballot Measure 50. Copies of the proposed ballot title and summary of fees were distributed to the Council for their information. 0175 Public Works Director Tiwari stated that Oregon state law does allow the imposition of system development charges in water, wastewater, traffic impact fees, storm drain, and parks. Currently, the City has all of these charges in place for many years but not all are imposed at the maximum allowable level. The Traffic Impact Fee (TIF) and Park SDC charges are both levied below the maximum allowable charges. He reminded the Council that expenditures from the these fees are restricted to capacity improvement. It was noted that the TIF ordinance allows for a charge up to 30% of the maximum allowable starting at 25 % and increasing it by 1 % per year with the charge at 28 % as of January 1997. If the City were to increase the charge to an amount over 30%, then an amendment to the ordinance is necessary. In regards to the establishment of the maximum allowable charges, periodic review is necessary to evaluate and make necessary adjustments to the charges. Director Tiwari reviewed a table of charges for each system development charge imposed by cities within are area. In summary. the City charges $6,127 for a single family residence in comparison to the average for eight communities of $6,379. It was Page 1 - Council Workshop Meeting Minutes. June 30, 1997 r '.' ..-'-.--.... .,.."'.-......."..,.--~~-. ..._~,,--...-- " 1 -....,. .~ '" COUNCIL WORKSHOP MEETING MINUTES June 30, 1997 TAPE READING noted that our Water and Wastewater system development charges are higher than the average whereas the other charges (parks, TIF, storm drain, water meter) are less. Director Tiwari briefly explained that nationally accepted engineer figures are used as a basis to determine SDC maximum allowable charges and each type of building or development use has a different SDC charge based on their impact on each system. Councilor Jennings stated that he was pleased to find that the overall average is less than other communities since so many builders tell him that Woodburn charges substantially more than any other city in the valley. One area of major concern is the traffic impact fee charges. Director Tiwari stated that he did not obtain data that would show what percentage level of the maximum allowable charge is being assessed by each City. He stated that he had originally recommended a 50% level with a maximum of 68%, however, the Council set the charge at 25% in 1994 with 1 % increases each year thereafter. It was noted that the traffic impact fees go into a system development fund dedicated for street capacity improvements. The first major expenditure from this fund will be the Parr Road widening project. He also stated that the TIF charge only looks at 10% of the City's match for the improvement of Highway 214 since the remaining 90% should be paid by the State. 0971 Councilor Jennings stated that he would not be adverse to increasing the TIF to 50% and increase another 1 % per year over the next five years then review the percentage again. He stated that the Transportation Plan calls for improvements that will need additional funds for capacity improvement and TIF fees generate a small part of the total estimated cost. By doubling our TIF charges, the City will be charging similar dollars for traffic impact that other cities are charging in the surrounding area. Mayor Kirksey suggested that the TIF charges be increased to 50% with an additional 5% each over the next 3 years. Dave Christoff, local realtor, expressed his support of an increase in TIF since it would bring in additional dollars to make necessary capacity improvements. Further discussion was held regarding the increase of fees in light of the passage of Ballot Measure 50. It was the consensus of the Council to request an opinion from the City Attorney as to whether or not the fees can be raised without a vote of the people. If it can be done without a vote, then the next step in the process will be to receive public input on proposed percentage increases. 1239 Mayor Kirksey also brought to their attention that the Park SDC fees are quite low and discussion should be held on this subject at a later date. 1295 Community Development Director reviewed the list of projects of short-term planning projects along with a comparison of fees of the same cities used in the SDC comparison. He stated that the average cost collected by these cities were substantially more than Page 2 - Council Workshop Meeting Minutes, June 30, 1997 r - ~'m' .,_...,~-<_,."'__.~~" ._".____,",.,_.,.,_, ,.' ...."_,."~._._~._.____~..'__~.'m_'. - . COUNCIL WORKSHOP MEETING MINUTES June 30, 1997 TAPE READING Woodburn's charge. Site plan review is one area that clearly shows disparity in fees in that fees range from $6,000 to $15,000 and Woodburn charges $350. Since General Fund dollars are used to offset a portion of planning costs, it is most likely that the City will have to go to a vote of the people in order to increase planning fees. Brief discussion was held on the use of private consultants to assist in this process. Director Goeckritz stated that developers are required to have the documents prepared by an engineering consulting firm. However, staff still needs to review the consultant's work since they are not familiar with City requirements. Discussion was held regarding the formulation of a base fee with additional charges assessed for extra hours staff is required to work on a planning project with a maximum limit. It was suggested that the main areas to look at for fee increases are in subdivisions, PUD's, and site plan reviews. Additionally, it was suggested that the Community Development Director evaluate the fees and provide numbers that would reflect what the market would bear in our area. David Christoff also suggested that an adjustment be looked at in those cases where small subdivisions, such as 4 lots, be charged a lesser amount than a larger subdivision, such as 100 lots. Further discussion was held on the staff looking at a variety of options and prepare a proposal for Council review. Mayor Kirksey stated that she would request the City Attorney to issue an opinion on the question of submitting Planning fee increases to a vote of the people. Councilor Jennings stated that information needs to get out to the public, developers, and realtors, as to how much it actually costs the City to review planning documents in relationship to the fee charged to developers. Jane Kanz, Chamber Executive Director, suggested that public education is necessary to explain capacity improvement, purpose of fee increases, and adjustments to TIF fees for small businesses especially in the downtown area. Public Works Director Tiwari stated that in already developed areas, new businesses only pay more fees if the capacity is changed by the new business. Brief discussion was held on the downtown area and it was suggested that if any fees were to be subsidized, it should be in the downtown area to encourage growth. Community Development Director stated that in the interview process of 4 different consultants for the downtown development plan, all consultants stated that lowering fees to businesses in a specific area will result in having low-end businesses that continually turnover. Another alternative was to reduce SDC fees in the downtown area but to be more restrictive on improvement made to the buildings and/or upgrading the landscaping in the downtown area. Page 3 - Council Workshop Meeting Minutes. June 30, 1997 r ."... ,--,_.,--~..~-"_.._--.-_._..-"".,~._-- ,.... .~--,-,_.~_... " I ~, COUNCIL WORKSHOP MEETING MINUTES June 30, 1997 TAPE READING It was the consensus of the Council that Director Goeckritz will provide alternatives to new planning fees using the average of fees charged by other cities as a basis for new City fees. 2938 ADJOURNMENT. The meeting concluded at 8:30 p.m.. , APPROVED NANCY A. KI ATTEST (f\~~ Mary'Te nt. Recorder City of Woodburn, Oregon Page 4 - Council Workshop Meeting Minutes, June 30, 1997 r ,.. ~.._'...._. -- .--..--....... .__._..._-_...._---._._~_.._"._.-. -_..._._--~-_._-~----~_._-.. '11 I " " -"-~ TAPE READING 0001 0003 0010 0015 0032 0069 0086 " '" SPECIAL COUNCIL MEETING MINUTES June 30, 1997 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JUNE 30, 1997. CONVENED. with Mayor ROLL CALL. The Council met in special session at 7:00 p.m. Kirksey presiding. Kirksey Chadwick Figley Hagenauer Jennings Pugh Sifuentez Mayor Councilor Councilor Councilor Councilor Councilor Councilor Staff Present: Public Works Director Tiwari, Community Goeckritz, City Recorder Tennant Present Absent Present Present Present Present Present Development Director Mayor Kirksey stated that Councilor Chadwick had called her earlier today to tell her that she was unable to attend the special meeting but would try to attend the workshop following the special meeting. COUNCIL BILL 1809 - ORDINANCE ADOPTING A BUDGET FOR FISCAL YEAR 1997-98, MAKING APPROPRIATIONS, AND LEVYING TAXES. Council Bill 1809 was introduced by Councilor Hagenauer. Recorder Tennant read the two readings of 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 Kirksey declared Council Bill 1809 duly passed with the emergency clause. COUNCIL BILL 1810 - RESOLUTION APPROVING A TRANSFER OF OPERATING CONTINGENCY APPROPRIATIONS WITHIN THE WASTEWATER FUND DURING FISCAL YEAR 1996-97. Councilor Hagenauer introduced Council Bill 1810. Recorder Tennant read the bill by title only since there were no objections from the Council. On roll call vote for final passage, Council Bill 1810 passed unanimously. Mayor Kirksey declared the bill duly passed. ACCEPTANCE OF UTILITY EASEMENT ON SCHOOL PROPERTY. Staff recommended the acceptance of a utility easement from the Woodburn School District (Junior High School Property west of Boones Ferry Rd) for the purpose of installing pipeline relating to the 1-5 gravity sewer and making ditch improvements. JENNINGS/FIGLEy.... accept the utility easement from Woodburn School District 103C as recommended by staff. The motion passed unanimously. Page 1 - Special Council Meeting Minutes, June 30, 1997 TAPE READING 0092 0100 0111 0120 ATTEST SPECIAL COUNCIL MEETING MINUTES June 30, 1997 CONTRACT AWARD - PARR ROAD LID STREET IMPROVEMENT. Bids for the widening of Parr Rd and Settlemier Avenue intersection improvements were received from the following contractors: D & D Paving, $542,814.06; D & D Concrete Utilities, $560,645.70; M.L. Houck Construction, $571,189.75; North Santiam Paving, $589,043.80; and Morse Bros., $657,727.00. Staff recommended that D & D Paving be awarded the contract which is 5% below the Engineer's estimate. JENNINGS/PUGH.... award the construction contract to the lowest responsible bidder, D & D Paving, for street improvements on Parr Road in the amount of $542,814.06. The motion passed unanimously. CONTRACT AWARD - 1-5 GRAVITY SEWER PROJECT. Bids for the 1-5 Gravity Sewer project located west of Boones Ferry Rd between School District property and Henry Farms Subdivision were received from the following contractors: Moore Excavation, $279,653.09; Marshall Excavation, $281,984.00; S-2 Contractors, $307,308.00; Valley Excavating, $335,900.00; Alliance Corp., $342,592.00; Miller & Sons, $353,345.80; and Davidson Utilities, $434,374.65. Staff recommended the acceptance of the low bid from Moore Excavation whose bid was approximately 19% less than the Engineer's estimate of $364,750.50. JENNINGS/FIGLEY... award the contract to the lowest responsible bidder, Moore Excavation, in the amount of $279,653.09 for the construction of the 1-5 gravity sewer project. The motion passed unanimously. LIABILITY. PROPERTY, AND WORKERS' COMPENSATION INSURANCE COVERAGE FOR FISCAL YEAR 1997-98. Staff recommended the continuation of insurance coverages through City County Insurance Services for fiscal year 1997- 98. JENNINGS/PUGH.... continue 1997-98 insurance coverage for liability, property, and workers' compensation through City County Insurance Services. The motion passed unanimously. ADJOURNMENT. JENNINGS/FIGLEy.... meeting be adjourned. The motion passed unanimously. The special meeting adjourned at 7:07 p.m.. ^"RC("jD ~Q~..~ ~ ~n NANCY A. K RKSIl:Y, MAYOR nant, Recorder o Woodburn, Oregon Page 2 - Special Council Meeting Minutes, June 30, 1997 r - - -<-- ".-.' ..~. ,,-_..-'".__."',-_.._._.._----~._"--.._..,..'....__.^'."' "'--~-"-'-'._'-'.'- "II . ~