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Minutes - 01/29/1996 Workshop TAPE READING 0001 0003 0011 COUNCIL WORKSHOP MEETING MINUTES January 29, 1996 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JANUARY 29, 1996. CONVENED. The Council met in a workshop session at 7:00 p.m.. The purpose of the workshop was to discuss the improvement of unpaved streets within the city. ROLL CALL. Mayor Councilor Councilor councilor councilor councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh Sifuentez Present (7:10 pm) Present Present Present Present (7:05 pm) Present Present staff Present: City Administrator Childs, Public Works Director Tiwari, Public Works Manager Rohman, City Recorder Tennant Public Works Director began the workshop with technical information on gravel road construction versus asphalt roads with curbs, gutters, and storm drains. He stated that gravel roads are only meant to carry traffic whereas city streets are built to carry traffic along with water, sewer, and storm drain lines. From an engineering aspect, it is better to have a structurally designed asphalt street rather than a gravel road, however, it is more expensive. He provided a map of the unpaved streets within the City along with an estimated cost to pave each street. The city currently has a total of 2.7 miles of unpaved streets and it will cost approximately $3.2 million to pave all of these streets. He briefly reviewed the City'S resurfacing program (20 year cycle costs approximately $4 million) and Capital Improvement Project list ( approximately $48 million) which involves improvements over the next 20 years. The resources currently available to help fund these improvements include the city Gas Tax, Privilege Tax, state Revenue Sharing, and Traffic Impact Fees. He stated that property tax has not been levied to help fund street improvements, however, some cities such as Salem do have a property tax in place. It was noted that resurfacing projects are paid for through the gas tax and State Revenue Sharing whereas the Privilege tax is dedicated towards capital Improvement Projects and Traffic Impact fees are to be used for capacity improvement only. In the past, the City has also established Local Improvement Districts in which property owners who directly benefit from the improvement help to pay for the cost of the improvement. Page 1 - Council Workshop Meeting Minutes, January 29, 1996 - - COUNCIL WORKSHOP MEETING MINUTES January 29, 1996 TAPE READING councilors Jennings and pugh spoke strongly on the need to proceed with the paving of unpaved city streets even if it requires diverting existing funds from the resurfacing program to accomplish this task. In their opinion, improving these areas will enhance the overall appearance of the city. It was also suggested that an assessment district be established within an industrial area to help pay for the cost of resurfacing city streets in that area since those streets generally require repairs sooner than most residential streets. Director Tiwari stated that the Council will need to evaluate and establish a policy regarding the question of who pays for improvements versus the benefit standards. He stated that some projects were paid in full by the property owners whereas other projects such as Bradley street involved a 25% contribution by the city through in-kind engineering services and/or cash contribution through a grant. He suggested that the Council consider a similar funding approach to future LID projects involving unpaved streets. It was noted that any LID involving street improvements does require 51% of the property owners to agree to the assessment. councilor Figley agreed that the city needs to look towards the paving of all city streets. She stated that she is very interested in receiving information from Public Works that would provide a cost comparison of how much it costs to keep a gravel street in good condition versus the paving of the street. Council discussion was held on various funding alternatives to provide funds necessary to pave all of the streets as soon as possible. Those alternatives included a general obligation bond issue with property taxes to repay the bond over an extended period of time or a revenue bond with the use of gas tax funds or State Revenue Sharing funds to repay the annual principal and interest payments. Several Councilors expressed a desire to see that all streets be brought up to City standards even if subsidies were required. However, some Councilors expressed concern in making the improvements without some contribution being made by the benefitted property owners. Mayor Kirksey stated that she did not feel that the taxpayers would be willing to pass a general obligation bond to pay for unpaved street improvements. 1834 Director Tiwari reminded the Council that staff needs policy decisions on funding sources to be used and the priority of improvements since property owners who do not live in the improvement area are less likely to be receptive to improvements that are very costly and in which they ultimately Page 2 - Council Workshop Meeting Minutes, January 29, 1996 r- - _."' ""'M"_ .."_____~__._.__-..---"----,,..-"-- I I , I TAPE READING Tape 2 0375 COUNCIL WORKSHOP MEETING MINUTES January 29, 1996 have to pay for. Councilor Jennings questioned the rationale behind the current street resurfacing program since older streets should be resurfaced first. Director Tiwari stated that the decision as to which street is resurfaced is based on the condition of the street. Some discussion was also held on the special assessment bond issue as it relates to the time frame in which it is paid back to the bondholders and options available to the city if a property owner defaults in their payments. Mayor Kirksey suggested that the councilors canvass the unpaved street areas to talk to the property owners and see if they are willing to participate in a local improvement district. Information on an estimated rate per front foot would be necessary so that the Councilors could discuss the issue with the property owners. If one or more property owners are willing to take a lead role in getting the LID established, they would work with staff in obtaining more specific information and following the necessary LID procedures. More discussion was held on the feasibility of pursuing the increase of other funding sources such as property tax or gas tax to pay for unpaved street improvements. Mayor Kirksey suggested that a town hall meeting be held and all property owners who live on an unpaved street be invited to attend to discuss their views on the subject. It was the consensus of the Council that more definite ideas and/or funding sources should be decided upon by the Council before any meeting of this type takes place. Councilors Sifuentez, Figley, and Jennings stated that they would be willing to talk to the property owners in their area regarding this subject. Director Tiwari stated that the current cost for this type of improvement is approximately $180 per lineal foot. If the City would contribute 25% towards the cost of the improvement, the cost per lineal foot would be reduced to $135. Following some further discussion, it was the general consensus of the council that the city should subsidize unpaved street improvements but no definite amount of subsidy was decided upon. It was also the consensus of the Council that certain streets were more important than others and, if a bond issue is proposed, it would be for the full amount rather than for specific streets. Several councilors reiterated their opinions that a Revenue Bond should be looked at rather than a General Obligation Bond with additional revenues generated from a $.02 gas tax increase. Page 3 - Council Workshop Meeting Minutes, January 29, 1996 ~. '~----"._'"'-''-''-'-'_._-''' ---.- ,.._-_._-,,--~._.._~,..'"' .~_._..'''-''''''--~ 'II" , TAPE READING 1160 1259 ATTEST COUNCIL WORKSHOP MEETING MINUTES January 29, 1996 Director Tiwari will provide the Council with additional information on the costs to maintain gravel roads versus a paved road along with other associated costs. ADJOURNMENT. The workshop adjourned at 9:10 p.m.. APPROVED ./ ~..-t./. NANCY A. MAYOR / /v~~ Mary T nant, Recorder city of Woodburn, Oregon Page 4 - Council Workshop Meeting Minutes, January 29, 1996 '.."" ,..."--,~..__..._._.._-"--' T .