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Agenda - 02/28/2005CiTY OF WOODBURN CiTY COUNCIL AGENDA FEBRUARY 28, 2005 - 7:00 P.M. KATHRYN FtGLEY, MAYOR WALTER NICHOLS, COUNCILOR WARD 1 RICHARD BJELLAND, COUNCILOR WARD I1 PETER MCCALLUM, COUNCILOR WARD III JAMES COX, COUNCILOR WARD IV FRANK LONERGAN, COUNCILOR WARD V ELIDA SIFUENTEZ, COUNCILOR WARD VI CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET CALL TO ORDER AND FLAG SALUTE ROLL CALL ANNOUNCEMENTS AND APPOINTMENTS Announcements: A. The Woodburn Public Library begins the "Winter into Spring" concert series with Geoff Frasier, Gaelic musician and entertainer, on March 13, 2005 at 2 p.m. at City Hall. B. The public hearing to consider Zone Change 04-04, Boones Ferry Place, scheduled for February 28, 2005 is rescheduled to March 14, 2005. APpointments: None. e PROCLAMATIONS/PRESENTATIONS Proclamations: None. ,,presentations: None. COMMITTEE REPORTS A. Chamber of Commerce B. Woodburn Downfown Association "Ha[~rA i~t~rl~retes bisponi[~[es }~ara aclu~[[as personas q~e ~o ba[~[an In~/~5 previo acuerbo. Commdquese a[ {5o3} 98o<z485." February 28, 2005 Council Agenda Pagei 6. COMMUNICATIONS e e A. Letter from Willamette Broadband BUSINESS FROM THE PUBLIC - This allows the public to introduce items for Council consideration not already scheduled on the agenda. CONSENT AGENDA - Items listed on the consent agenda are considered routine and may be enacted by one motion. Any item may be removed for discussion at the request of a Council member. A. Woodburn City Council minutes of February 14, 2005 Recommended Action: Approve the minutes. Be Woodburn Planning Commission Special Meeting minutes of February 3, 2005 Recommended Action: Accept the minutes. C. Woodburn Planning Commission minutes of February 10, 2005 Recommended Action: Accept the minutes. Woodburn Public Library Board minutes of February 9, 2005 Recommended Action: Accept the minutes. Audit Report Recommended Action: Receive the report. TABLED BUSINESS 2 13 24 27 31 None, 10. PUBLIC HEARINGS Zone Change 04-04 located at 2325 N Boones Ferry Road Recommended Action: No action is necessary. The public hearing was re-noticed for March 14, 2005. Be Legislative Amendment 05-02; Annual Review of the Woodburn Development Ordinance Recommended Action: Conduct a public hearing and instruct staff to prepare an ordinance adopting the draft revisions to the Woodbum Development Ordinance and prepare findings to substantiate the Council's decision. 35 37 February 28, 2005 Council Agenda Page 11. 12. 13. 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. ke Council Bill 2555 - Ordinance amending Ordinance 2312 (the Woodburn Noise Ordinance) to reduce certain decibel levels and declaring an emergency (SECOND READING) Recommended Action: Adopt the ordinance. Be Council Bill 2558 - Ordinance adopting rules for public contracting; establishing certain class exemptions; providing procedures for personal service contracts; and declaring an emergency Recommended Action: Adopt the ordinance. Ce Council Bill 2559 - Ordinance accepting a 2004 Rural Access to Emergency Devices grant received during fiscal year 2004-05, making appropriations, and declaring an emergency Recommended Action: Adopt the ordinance. De Council Bill 2560 - Resolution establishing a public hearing date for the vacation of public right of way, a portion of Sixth Street, from West Lincoln Street to its south terminus, and directing the City Recorder to give public notice Recommended Action: Adopt the resolution. Annexation Policy After Passage of Ballot Measure 37 Recommended Action: Receive the report and provide policy direction on whether the City wants to require the waiver of future Measure 37 claims when property is annexed. NEW BUSINESS 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. 43 48 61 67 72 A. Planning Commission's approval of Partition 04-06, Variance 79 04-26 and Variance 05-02 (1123 McKinley Street) B. Community Development Director's Approvaiof Partition 05-03 81 (Boones Crossing) February 28, 2005 Council Agenda Page iii 14. 15. 16. CITY ADMINISTRATOR'S REPORT MAYOR AND COUNCIL REPORTS ADJOURNMENT February 28, 2005 Council Agenda Page iv 6A FEB ? 2 February 15, 2005 John Brown City of Woodburn 270 Montgomery Street Woodbum, OR 97071 Dear John, As part of updating our current services, we wanted to take this Opportunity to communicate with you about exciting changes in our services. It has always been our goal to provide our customers with an outstanding choice of quality programming, excellent customer service, value, and the benefits of new technology. As part of this commitment, we are investing in our infrastructure and improving reliability. As a result, Wilmette Broadband is happy to announce the latmch of a new Intemet service in March. At that time, willamettebroadband.com will become WBeable.com. For customers, this change means a better Internet experience, greater speed, and more reliability without an increase in cost. In fact, as you may have heard, our Intemet prices just went down $10.00 As part of offering the best service that we can, we listen to our customers and take their input seriously. As a direct result of a customer survey last autumn, we will be adding new channels to our service, including the TV Guide Channel, which will be appearing in February on Analog and in April on Digital Cable. Our promise to all of our communities is to keep working hard to provide our customers with the best service possible. If you have any questions, please feel free to contact me at any time. Sincerely, % '~~, ~_, r~esi~lent Willamette Broadband, LLC. 669 Glatt Circle Woodburn, OR 97071 503-982-4085 * Fax 503-982-4804 www.wbcable.com 8A TAPE REA~FNG COUNCIL MEETING MINUTES FEBRUARY 14, 2005 0001 DATE; COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MAPdON, STATE OF OREGON, FEBRUARY 14, 2005. 0130 The rneeting convened at 7:00 p.m. with Mayor Figley presiding. Mayor Figley Present Councilor Bj elland Present Councilor Cox Present Councilor Lonergan Present Councilor McCallum Present Councilor Nichols Present Councilor Sifuentez Present Staff Present: City Administrator Brown, City Attorney Shields, Public Works Director Tiwari, Police Chief Russell, Community Development Director Mulder, Public Works Manager Rohman, Management Analyst Smith, Recorder Tennant Mayor Figley reminded the public that today is the 146th birthday of the State of Oregon and the 116th birthday of the City of Woodburn. 0O66 ANNOUNCEMENTS. A) In observance of the President's Day holiday, City Hall and the Library will be closed on Monday, February 21, 2005. The Aquatic Center will be open regular hours. B) A Teen Scene dance and swim will be held at the Aquatic Center on Saturday, February 26, 2005, from 7:00 pm until 10:00 pm. C) A public heating will be held before the City Council on Monday, February 28, 2005, 7:00 p.m., to consider Zone Change 04-04 - Boones Ferry Place, 2325 N. Boones Ferry Road. D) A public hearing will be held before the City Council on Monday, February 28, 2005, 7:00 p.rn., to consider legislative amendment 05-02 - Annual Woodburn Development Ordinance (WDO) Update. .Q124 APPOINTMENTS. Mayor Figley appointed the following individuals to serve on City boards/commissions: Recreation and Park Board: Eric Yaillen - Position 1, term expiration on December 31, 2007 Planning Commission: Richard Jermings - Position 7, term expiration on December 31, 2006 COX/SIFUENTEZ... approve the appointments made by the Mayor. The motion passed unanimously. Page 1 - Council Meeting Minutes, February 14, 2005 2 TAPE READFNG COUNCIL MEETING MINUTES FEBRUARY 14, 2005 ,~192 PRESENTATION: POLICE FACILITY. Jeff Reeves, Group Mackenzie, stated that they have been working with the Design Committee and are on schedule with the concept design close to being completed. They have also had a pre-application meeting with the City's Planning staff and are getting ready to prepare the application for design review. He stated that the building is approximately 30,450 square feet and is following closely to the pre-design that was presented to the City Council last summer. He reviewed the (1) site location of the facility, (2) floor plan, and (3) roof design options being considered by the Committee. By March 9, 2005, his firm will have a 30% set of drawings completed and it is anticipated that design review will begin around March 15th. It was also noted that a traffic study is being done for Highway 214 to determine the exact requirements, however, the expectation is that there will be a center turn lane that will turn into this project as well as a deceleration lane. On the property itself, there will be three traffic lanes with one lane going into the facility and two lanes going out of the facility. 9869 PRESENTATION: 2004 CRIME STATISTICS REVIEW, Police Chief Russell stated that there was a slight increase in crime reports for 2004 but a drop in index crimes per capita. Index crimes are separated into two categories - violent crimes and property crimes. He reviewed the statistical information and percentage level within each index crirne. He also stated that the City had changed to a new records management system in 2003 which provides for incident based crime data. This data also allows the City to compare our data with data frorn other Oregon cities, the West Coast, and all of the United States. This system also allows for the Police Department to look at an adjusted crime rate for population which is the most relevant information for analyzing criminal activity. In regards to property crimes, theft and burglaries continue to be high, however, there is a slight reduction since 2002. He briefly reviewed comparable data from a number of cities in Oregon and the data shows that Woodburn continues to be a busy department. It was also noted that the department's clearance rate continues to be on the rise due in part to staffing levels. It is anticipated that the clearance rates will continue to improve when the three officers in training are able to work in the field. Chief Russell reiterated that the overall news on crime is relatively good and success in crime reduction continues to be in areas where citizens will recognize the problem and get involve with the Police Department to address the crime issues. Councilor McCallum questioned the percentage of crimes that involve the use of methaphedimes. Chief Russell stated that some reports indicate that 85% of all crimes involve methaphedime use. In regards to Neighborhood Watch, the City has not been able to isolate Neighborhood Watch efforts on reduction of crimes but nationally the numbers do show that a Neighborhood or Business Watch program does result in a lower crime number. The biggest issue he has found with these watch programs is that they organize to solve a problem and, once the problem is solved, they tend to dissolve. Page 2 - Council Meeting Minutes, February 14, 2005 3 TAPE READING COUNCIL MEETING MINUTES FEBRUARY 14, 2005 1720 PRESENTATION: POLICE R~SPONSE DISTRICTS Chief Russell provided the Council with a map of the current district grid system which consists of 32 grids based on Council wards and zoning. One of his department goals was to research this issue and bring back a revised model system for Council consideration. He stated that the current grid system is problematic to the department since the wards and zoning have changed over the last 20 years when the system was initially adopted by the City. The number of grids has created numerous problems relating to staffing and crime analysis. Additionally, it has seriously challenged the department's ability to be pro-active in improving relations with community members to respond to neighborhood problems, patrol officer assignments, and providing statistical data consistent with information in the current records management system. He reviewed a proposed response district model that would divide the City into 6 districts with each district having a similar call load. Officers would be assigned a primary district for a specified period thereby giving officers an opportunity to get to know the citizens in their district, attend neighborhood and community meetings and events, and be a resource for the district. Development of policy and procedures to implement this type of response district model is still being worked on by his staff, however, he feels that this proposed model will improve police service to members of our community. He requested Council and public input on this proposal prior to finalizing a plan that would be brought back to the Council for final review and adoption. Councilor Bjelland suggested that geographic boundaries characteristic of the types of structures, residents, or businesses should play a greater factor in determining how particular districts are designed rather than matching the districts with Council ward boundaries. Councilors McCallum and Nichols agreed with the comment made by Councilor Bjelland regarding the district boundaries. 260.__.__Q0 CHAMBER OF COMMERCE REPORT,. Niki DeBuse, representing the Chamber, distributed the following materials to the Council: 1) a brochure on the Q (Quality) Training Program which is a customer service training program for employees in specific industries. The first training session will be held in April and will focus on hospitality businesses such as restaurants, hotels, and motels. 2) the monthly Chamber statistical report; 3) Distinguished Service Award (DSA) nomination forms; and 4) a recently published Community Guide which is published every two years. She stated that the DSA banquet will be held on March 18th at Country Meadows Retirement Center. The Chamber will be representing Woodbum this weekend, in partnership with the Wooden Shoe Bulb Company, at the Yard, Garden, & Patio Show in Portland. They will also be partnering with Wooden Shoe Bulb Company during the Discover French Prairie Weekend, and with other local communities such as Aurora and Hubbard to put on some tourism oriented activities in their communities. The Chamber Forum luncheon will be held on February 16th at Tukwila Medical Center, Page 3 - Council Meeting Minutes, February 14, 2005 4. COUNCIL MEETING MINUTES FEBRUARY 14, 2005 TAPE READFNG 12:00 noon, with the featured speaker being Mindy Mayer frorn McDonald's. Lastly, the next Greeter's program will be held on Friday, February 18th, at Miles Jeep Chrysler & Dodge. 2900 WOODBUR2q SCHOOL DISTRICT REPORT. Walt Blomberg, Superintendent, updated the Council on the following school related issues: 1) the District is in the process of transforming the high school from about 1300 students to potentially 4 smaller high schools. This will be a two-year process and the District is about half-way through the first year. District representatives are traveling around the country to view models of small schools. Their reports, along with proposals from interested members of the community and staff, will be used to help develop the School District's own proposal for the smaller high schools. The School Board will evaluate the proposals later this year and it is hoped that a decision on what the schools will look like will be made by June. 2) Students at French Prairie Middle School participated in a "Math Counts" contest which involved middle schools in the throughout the Willamette Valley. A school from Eugene took 1st place, however, the French Prairie Middle School students did take 4th place. 3) Valor and French Prairie Middle Schools undertook an effort to help children begin to process how they could help victims of the Tsuanmi. The schools earned over $3,000 for the victims of this disaster. Additionally, Lincoln Elementary did a fundraiser for Tsuanmi victims and they earned almost $800. 4) Classified Employees Week will be held March 7 - 11, 2005. 5) Lastly, Heritage Elementary School was recently recognized by the National Staff Development Council regarding the work being done at Heritage to close the achievement gap. This organizationl is publishing an article in the Results Magazine on the efforts the school is going through to make sure that our English language learners, both Spanish and Russian, are beginning to elevate their skills in the time that they spend in our school system so that they can compete with those students who are English speaking only and have had the advantages of the our school system throughout their lives. Councilor Cox congratulated Superintendent Blomberg on his column in the Woodbum Independent on the problems our School District is faced with under the "No Child Left Behind" guidelines. Superintendent Blomberg stated that Woodbum is at the head of the pack since we are the most diversed community in Oregon. The standardized tests do not measure how much a child learns from year to year within their school rather it is a test that measures a child's knowledge against all schools in Oregon. Woodbum's diversity puts our students at a disadvantage since many students are not at the same learning level as the rest of the State and yet the educational level for our students continue to rise. 3513 COMMUNICATIONS: P~CEIPT FROM UNITED DISPOSAL SERVICE Mayor Figley stated that the City had received a receipt from United Disposal Service in the amount of $14,024.00 for services they had donated to the City in 2004. She expressed her Page 4 - Council Meeting Minutes, February 14, 2005 15 TAPE READING COUNCIL MEETING MINUTES FEBRUARY 14, 2005 appreciation to United Disposal for their willingness to donate their services in order to maintain cleanliness in the downtov, m area. 3552 Richard Jennings, 595 Filbert Street, expressed his opinion that Group MacKenzie has been very receptive to the ideas expressed by the Design Review Committee and they are very watchful of the dollars to be spent on the Police Facility project. He also stated that he had expressed his opinion on the "No Child Left Behind" law to Representative Darlene Hooley when she was in Woodburn last Saturday. He felt that the law was giving Woodburn a bad name because of our diversity and yet a number of our teachers and administrators are being honored for their work. Lastly, he read his letter of resignation from the Woodbum Budget Committee effective immediately due to his appointment to the Planning Commission. 3776 CONSENT AGENDA. A) approve the Council Minutes of January 24, 2005; B) accept the Planning Commission minutes of January 13, 2005; C) accept the Planning Commission minutes of January 27, 2005; D) accept the February 8, 2005 draft minutes of the Recreation and Park Board; E) receive the Aquatic Center Revenue Comparison report; F) receive the Library Monthly Report for January 2005; G) receive the Building Activity Report for January 2005 H) receive the Planning Project Tracking sheet dated February 2, 2005; I) receive the Claims Report for January 2005; and J) receive the Public Contracting Executive Memo dated February 9, 2005. MCCALLUMfNICHOLS .... adopt the Consent Agenda as presented. The motion passed unanimously. 3877 Page COUNCIL BILL NO. 2555 - ORDINANCE AMENDING ORDINANCE 2312 (THE WOODBUPd'4 NOISE ORDINANCE) TO REDUCE CERTAIN DECIBEL LEVELS. Council Bill 2555 was introduced by Councilor Sifuentez. Recorder Tennant read the two readings of the bill by title only since there were no objections from the Council. Councilor Cox stated that he was not in attendance at the last meeting when this item was discussed but he has reviewed the information and has no problem with the proposed ordinance. However, he would like to have Council discussion on the use of the emergency clause in an ordinance. This particular bill has an emergency clause but he did not see where this bill needed to be in force immediately. He stated that an emergency clause takes away the right a citizen has to file an initiative petition, therefore, the Council should use more evaluation as to whether any given ordinance needs to go into effect right away or wait until it would go into effect as provided for within the City Charter. He reiterated his desire to have a brief discussion on this issue within the near future. Councilor Lonergan expressed his appreciation to the Livability Task Force for their work in reviewing and recommending changes to the noise ordinance. However, he would voting 5 - Council Meeting Minutes, February 14, 2005 6 TAPE READFNG COUNCIL MEETING MINUTES FEBRUARY 14, 2005 against the proposed ordinance since he did not feel that it went quite as far as what he would have liked to have seen primarily limiting some of the evening power noises that come from running power mowers. On roll call vote for final passage, the vote was 5-1 with Councilor Lonergan voting nay. Mayor Figley stated that this bill will be brought back at the next meeting for a second reading and final vote. ,4288 4472 COUNCIL BILL NO. 2556 - RESOLUTION ENTERING INTO WALKWAY / BIKEWAY PROJECT AGREEMENT NO. 22253 WITH THE STATE OF OREGON. Councilor Sifuentez introduced Council Bill 2556. 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 Figley declared Council Bill 2556 duly passed. INTERGOVERNMENTAL AGREEMENT WITH MARION COUNTY AND TH E CITIES OF MT. ANGEL, STAYTON, AND SILVERTON PROVIDING FOR - PARTICIPATION IN THE MARION COUNTY INTERAGENCY SPECIAI, ~EAPONS AND TACTICS (SWAT) TEAM. -- Council Bill 2557 was introduced by Councilor~ifuentez. The bill was read by title only since there were no objections from the Council. It was noted that the typed name of Mayor Figley will replace the City Administrator's name below the Approval signature line. On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared Council Bill 2557 duly passed. 4574 LAWSON AVENUE / HIGHWAY 214 INTERSECTION Councilor Cox stated that he has reviewed the options and looked at the site, however, he hesitates to spend much money on an improvement that may have a short life span. He questioned if the City could legally put appropriate signage up and pass a resolution that would prohibit southbound truck traffic on Lawson Avenue. Councilor Nichols stated that a similar problem exists on Evergreen in that there is a northbound turn lane on Evergreen Road. If Lawson Avenue was one-way southbound, then there would be no on-coming traffic on Lawson Avenue that the trucks would have to contend with when turning onto this street. Public Works Manager Rohrnan agreed that directing truck traffic to Evergreen Road would potentially create more of a problem relating to traffic flow. He stated that he had spoken with McDonald's owner Mindy Mayer and she was vigorously opposed to any changes in the existing traffic pattern since she feels it would affect her business. He also stated that he was unable to contact the owner of Taco Bell to talk about this issue. Councilor Nichols questioned how her business would be impacted since she has a private roadway behind her business that connects to Evergreen Road. Page 6 - Council Meeting Minutes, February 14, 2005 7 COUNCIL MEETING MINUTES FEBRUARY 14, 2005 TAPE READYNG Public Works Manager Rot-n-nan stated that Taco Bell would be impacted rnore if it was just one-way on Lawson Avenue since their entrance way does not match up to the McDonald's private driveway. The Environmental Assessment will be finalized later this summer and it will be looking at the traffic patterns on Highway 214 near the interchange. A Stakeholders meeting will be held later this week and Mindy Mayer has raised some serious objections to even that plan. He stated that the Chevron station will be purchased by the State as part of the interchange modernization project since that business will not have any reliable means of access off of Highway 214. Once the modernization project is completed, redevelopment of that area will provide alternative access options to businesses. Councilor Cox stated that Lawson Avenue is a problem area for traffic flow and the proposed design may be completed later this summer, however, the actual construction work will probably not take place for several years. He expressed his opinion that the City may want to keep the traffic pattern status quo so that the existing businesses would not be impacted nor will the City incur costs for a short term fix. Councilor McCallum agreed with Councilor Nichols in that Evergreen Road and Lawson Avenue are problem intersections and, even though he appreciated the staff's work to provide creative solutions, he agreed with Councilor Cox that no action be taken until the Environmental Assessment is completed or just wait until the modernization project is completed. Mayor Figley suggested that the Council revisit this issue after a plan is finalized later this year. 6197 SOUTH FRONT STREET IMPROVEMENTS (UNDERGROUNDING AND LIGHTING PHASE). Bids for the South Front Street undergrounding and lighting improvements were received from the following contractors: Kerr Contractors, Inc., $383,493.75; Canby Excavating, Inc., $395,502.20; Westech Construction, Inc., $437,574.44; Loy Clark Pipeline Co, $454,405.69; C & M Construction, Inc., $458,485.75; Eagle-Eisner, Inc., $524,149.80; North Santiam Paving Co, $599,779.95; and Henkles & McCoy, Inc, $636,772.38. Staff recommended that the bids from Kerr Contractors Inc. and Westech Construction Inc. be rejected since they did not substantially comply with all of the bidding requirements. Staff also recommended the acceptance of the bid from the lowest responsible bidder, Canby Excavating Inc., which was within 12% of the engineer's estimate of $352,675.00. BJELLANDFNICHOLS... reject the bids of Kerr Contractors Inc. and Westech Construction Inc., as not responsive because neither bid included and ackmowledged all necessary bid addendums, and that the Council further award the construction contract to the lowest responsible bidder, Canby Excavating Inc., for the undergrounding of utilities on South Front Street in the arnount of $395,502.20. Councilor Cox stated that he had some concerns when he first read the agenda item since it tied in with an agenda item that was previously pulled by staff several weeks ago regarding an agreement between the City and Union Pacific Railroad. He stated that he has been Page 7 ~ Council Meeting Minutes, February 14, 2005 8 COUNCIL MEETING MINUTES FEBRUARY 14, 2005 TAPE READING assured by Director Tiwari that the contracts were structured in such a way that if the City does not reach ultimate agreement with the railroad and PGE to protect the City frorn liability then the City could pull that phase of the work out of the contract. The motion passed unanimously. 6450 BID AWARD: MUNICIPAL WELL 14 WELL HOUSE. Bids for a well house were received from the following contractors: TransAmerican Contractors, Inc., $304,360.00; HPS construction, Inc., $353,510.00; Geo Tech Explorations, $362,012.00; Stellar J Corporation, $373,694.00; Stettler Supply Company, $414,600.00; and Nomarco Inc. (bid not provided). Staff recommended that the bid from Nomarco Inc. be rejected as not responsive, and the Council award the bid to TransAmerican Contractors Inc.. BJELLAND/MCCALLUM... reject the bid ofNomarco Inc as not responsive because it did not include the bid breakdown page, and the Council award the bid for Municipal Well 14 Well House to the lowest responsible bidder, TransAmerican Contractors, Inc., in the amount of $304,360.00. Councilor Cox requested clarification as to the reason the bid from Nomarco Inc was considered as non responsive. Public Works Manager Rohman stated that all of the bid amounts were to be included on one page, however, when Nomarco Inc prepared their bid, they wrote down and totaled the numbers but they left the page out when they sealed their bid document. The motion passed unanimously. 6673 2005 OLCC LIQUOR LICENSE RENEWALS. Staff recommended the renewal of the following liquor licenses for 2005: Off-Premise Sales: 7-11 Store #2353-17416B, Bi-Mart #643, Safeway Store #1976, Crossroads Grocery & Deli, Salvador's Bakery I, E-Z Stop Market Grocery & Deli, Senior Estates Restaurant, Gary's Market #1, Woodburn Shop N Kart, The Raven Inn, O'Donnell Enterprises (AM-PM Mini Mart), OLCC Store #60, Su Casa Imports, Westview Texaco 1, Piper's Jewelry, Woodburn Fast Serve (Woodbum Chevron), Roth's IGA Foodliner, Young Street Market, Walmart Supercenter #1793, US Market #109, Your Northwest Full On-Premise Sales: Chu's Eatery, Los Cabos Mexican Restaurant, Lupita's, Eagle's Lodge #3284, OGA Members Course, Elmer's Restaurant, La Sierra Restaurant, The End Zone Sports Bar, Elk's Lodge #2637, Rumors Bar & Grill & Bowers Steakhouse, Yun Wah Chinese Restaurant, Salvador's Bakery II~/E1 Corralejo, Denny's at Woodburn Limited On-Premise Sales: Abby's Pizza Inn, Billy O Deli & Pub, Pizza Hut, Senior Estates Restaurant, Taqueria Guadalajara, D & D Restaurant, The Raven Inn, La Unica, Shah's of Woodburn, La Palapa, Woodbum Lanes, Cactus Grill, Fonzie's Deli, E1 Amadillo Loco It was also noted that Chu's Eatery, Los Cabos Mexican Restaurant, Salvador's Bakery III/E1 Corralejo, and E1 Amadillo Loco have compliance plans in place. COX/SIFUENTEZ... recommend to the Oregon Liquor Control Commission the renewal of the liquor licenses for the listed businesses as outlined in the staff report. Page 8 ~ Council Meeting Minutes, February 14, 2005 9 COUNCIL MEETING MINUTES FEBRUARY 14, 2005 TAPE READ~qG Councilor McCallum expressed concern regarding one business on the report having three incidents of selling to a minor and this business lost their license for a period of time during 2004. He questioned the status of that business and/or any other businesses on the list that were cited for selling alcohol to a minor. Chief Russell stated that there were 5 businesses that were cited in 2004 and only one business, Los Cabos, was cited twice. These citations, coupled with a previous year citation, resulted in this business having a suspension of their license for 30 days. They have had their license reinstated since September and are in good standing with OLCC. This business has a mandatory compliance plan in place and, in discussion with OLCC, the business has completed the required OLCC training and they continue to have everything in order. The motion passed 5-1 with Councilor Nichols voting nay. 0190 AUTHORIZATION FOR REQUEST FOR PROPOSALS FOR BUILDING DIVISION PERSONAL SERVICE CONTRACTS. COX/NICHOLS... authorize and approve the request for obtaining Request for Proposals for the City to enter into personal services contracts for plan review and inspection services for the Building Division. The motion passed unanimously. 0245 PLANNING COMMISSION OR LAND USE ADMINISTP. ATIVE ACTIONS. 0286 A) Planning Commission approval of Planned Unit Development 04~05 and Variance 04-31 (Links at Tukwila): Modifies PUD Case file no. 03-02 and variance approval to allow for reduction of the rear yard setback from 20 feet to15 feet for lots 87-93, 95, and 98 within Phase III of the Links of Tukwila. B) Planning Commission approval of PUD 04-06 and Variance 04-32: Modifies PUD Case file no. 04-03 and variance approval to allow for the reduction of the rear yard setback from 20 feet to 15 feet for lots 64-71, and 74 of Phase IV and V of the Links of Tukwila. No action was taken by the Council to call these actions up for Council review. CITY ADMINISTRATOR'S REPORT. A) Administrator Brown stated that the Department of Revenue had recently ruled to reduce the assessed valuation of the NorPac property thereby reducing property taxes to be paid by the company. This decision will create a $4.5 million negative impact on the County tax pool. As a recipient of tax monies frorn this pool, the City will be affected by this decision and it is anticipated that the City's share will be about $110,000. The Department of Revenue went back 5 years when making their decision and, in addition to the refunding the overpayments, the business will receive interest on the overpa~yq:nent at a rate of 12%. He expressed his concern with the loss of revenue for this fiscal year in addition to the future loss of property tax revenue even though the loss will be at a lesser rate. He has met with staff and has asked them to assume a reduction target which is a proportional share of this loss. The next allocation of property tax dollars will be in May and, since the close of the fiscal Page 9 - Council Meeting Minutes, February 14, 2005 10 COUNCIL MEETING MINUTES FEBRUARY 14, 2005 TAPE READD, IG year is the following month, staffhas been asked to make cutbacks based on their proportional share beginning right away. Within the Police Department, one of the NRT officer positions will remain open through the end of this fiscal year and the other Captain's position will not be filled until April. Departments who do not have personnel vacancies are having to take reductions in supplies and services accounts. B) Administrator Brown stated that the Police Facility bonds will be sold on February 23, 2005 and the City's Moody's Rating continues to be an A3 which is at the top end of population size for a well managed City. As a result, bond insurance will be acquired as part of the selling process and it will give the City the top A rating that we would have received otherwise. The City is authorized to sell bonds up to $7,066,000 at par value. Investors like to see a 5% return rate on bonds and, in order to get this return rate, they are willing to pay a premium. If a premium is paid, the City could receive an additional $450,000 in addition to the $7,066,000. Another option the City could elect to take is to reduce the amount of the bonds sold by an amount that would be calculated on the date of sale that would still generate $7,066,000. He suggested that the City sell the bonds at full value of $7,066,000 and, if additional funds are received, then those dollars would be available as project contingency dollars. Funds not used could be utilized to buy down the principal rate on these bonds and ultimately reduce the amount that taxpayers would be required to pay over the life of the bonds. It was the consensus of the Council to sell the bonds at par value. C) Administrator Brown stated that the Periodic Review notebooks will be available tomorrow so that the Council can begin reading the document. I)) In regards to the application for a downtown grant through the Meyer Memorial Trust which had been discussed during the Council's goal setting workshop, the City did not receive this particular grant. Staff is currently working on a TGM grant and is researching other grant opportunities in order to move forward with a downtown specific plan. E) Lastly, Administrator Brown reminded the Council that he had not received the prioritization of goals from all of the Councilors as of this date and, once received, he will put the list of goals before the Council for review and adoption. 1120 MAYOR AND COUNCIL GOALS, Councilor Lonergan questioned if a crosswalk could be placed on Settlernier Avenue at the Garfield Street intersection. Public Works Director Tiwari stated that staff will analyze this request and develop possible solutions to be brought back before the Council. Councilor McCallum was glad to hear that the NorPac issue is being handled by staff. He congratulated the Mayor on her message at the Chamber Forum which included information on the City's excellent financial position and on those outside influences that the City has no control over. He also congratulated former Mayor Jennings on his appointment to the Planning Commission. Page 10 - Council Meeting Minutes, February 14, 2005 11 TAPE COUNCIL MEETING MINUTES FEBRUARY 14, 2005 Councilor Bjelland stated that he is now the Chair of MWACT (Mid-Willamette Area Commission on Transportation) and hopefully this will give him the opportunity to represent the transportation needs of MWACT amongst all of the other Areas of Commissions on Transportation. The Chairs of each Commission will be meeting periodically to work on issues of how each Commission will allocate funding and establish prioritization of transportation projects within Region 1I. There continues to be a lack of funding for projects at the State level and there is a need for Woodburn to be an earmarked project in order for our interchange project to be eligible for federal transportation funds. Councilor Sifuentez questioned if the City was addressing the letter that was received from Dan Brown. Administrator Brown stated that a copy of the letter in response to Mr. Brown's letter is in · ~S the Councilor file folders in the Administration office. Mayor Figley stated that the City was a successful applicant for funding from a group called "Baseball Tomorrow" which receives most of their funds from major league baseball teams. Thanks to their generosity, the Woodbum Rotary, and some local charitable individuals and groups, the City will have a third ballfield complete and ready for some tournament play by the July 4th weekend. 180Q ADJOUR1NMENT. MCCALLUM/SIFUENTEZ...meeting be adjourned. The motion passed unanimously. The meeting adjourned at 9:00 p.m.. APPROVED tC~THRYN FIGLEY, MAYOR ATTEST Mary Tennant, Recorder City of Woodburn, Oregon Page 11 - Council Meeting Minutes, February 14, 2005 12 8]] WOODBURN PLANNING COMMISSION SPECIAL MEETING MINUTES February 3, 2005 CONVENED The Planning Commission met in a special session at 7:00 p.m. in City Hall Council Chambers with Chairperson Lima presiding. ROLL CALL Staff Present: Chairperson Lima p Commissioner Vancil p Commissioner Grigorieff p Vice Chairperson Bandelow P Commissioner Hutchison p Jim Mulder, Community Development Director Naomi Zwerdling, Associate Planner Deniece Won, Assistant City Attorney Chairperson Lima set the ground rules for the Public Hearing and provided an opening statement. PUBLIC HEARING A__:. Le.qislative Amendment 05-02, City-initiated proposal to amend the Woodburn Development Ordinance. Staff reported the proposal was initiated by the Woodburn City Council to amend the Woodburn Urban Growth Boundary, Woodburn Comprehensive Text and Map, Woodburn Development Ordinance and the Woodburn Zoning Map. These amendments are proposed in order to complete the City's Periodic Review Work Program. He further stated the City of Woodburn is currently in State mandated Periodic Review of its Comprehensive Plan and he outlined the 11 Work Tasks the City is required to complete. Staff also mentioned the City has completed Tasks #5 and #6, Parks and Recreation Plan and the Historic Downtown Plan, they have been acknowledged by the Oregon Land Conservation Development Commission. All remaining Tasks have been completed with the exception of Tasks #9, #10 and #11. Task #9 Coordinating new Urban Growth Boundary Management Agreement with Marion County, which is currently being coordinated and is anticipated to be done by the time the amendment proposal gets to the City Council. Additionally, he said although he has completed the Citizen Involvement Report (Task #10), it would not be finalized until the Council actually adopts the amendments and the same goes for Task #11. Completion of all these Work Tasks requires the City to revise the Woodburn Comprehensive Plan Text and Map, the Development Ordinance and Zoning Map. In addition, to comply with State Statutes mandating the City provide a 20-year buildable lands supply, the Urban Growth Boundary is proposed to be expanded. Staff indicated public hearings on these proposed Legislative Land Use Amendments have been scheduled tonight before the Planning Commission and have also been noticed and scheduled for the City Council on March 28, 2005. The applicable approval criteria that apply to these proposed amendments were outlined by Staff. Once the proposed amendments are adopted by the City Council and acknowledged by LCDC, the City will have completed its Periodic Review Work Program. The proposed amendments, maps and supporting documents are compiled in a document called The City of Woodburn 2005 Comprehensive Plan Update, which has been provided to the Planning Commission. Moreover, an attachment to the Staff Report contains Findings of Fact that demonstrate compliance with the approval criteria, which were provided to the Commission tonight. Staff briefly summarized the proposed amendments as fOllows: Proposed Comprehensive Plan Text Amendments: Residential Land Use and Housing Goals and Policies are amended to provide for a Nodal Development Overlay District. Industrial Development Goals and Policies are amended to incorporate recommendations of the 2002 Planning Commission Meeting - February 3, 2005 Page 1 of 11 13 Economic Opportunities Analysis and Development Strategy and to create a Southwest Industrial Reserve Overlay District. Marion County Economic Coordination Goals and Policies are added to provide for coordination with Marion County Growth Management Framework Plan. Commercial Lands Goals and Policies are amended to encourage infill and redevelopment and to create a Nodal Neighborhood Commercial District. Transportation Goals and Policies are amended to be consistent with the updated Transportation System Plan and to create an Interchange Management Area Overlay District. Public Facilities Goals and Policies are added to consolidate and coordinate the Water, Wastewater, Stormwater and Transportation Plans. Natural and Cultural Resources Goals and Policies are amended to create a Riparian Corridor and Wetlands Overlay District. The Woodburn Development Ordinance is also amended as part of this proposal to implement the Goals and Policies of the Comprehensive Plan and are proposed as follows: Six new overlay districts are created, Nodal Single Family Residential, Nodal Multi- Family Residential, Nodal Neighborhood Commercial, Riparian Corridor and Wetlands Overlay, Southwest Industrial Reserve Overlay and the Interchange Management Area Overlay. Regulations of proposed Overlay Districts are summarized as follows: Riparian Corridor Wetlands Overlay will generally restrict development within 50 ft. of designated creeks and water courses. The Southwest Industrial Reserve will require master planning of the district to provide for minimum tot sizes for targeted types of industries. The Nodal Residential Single Family and Nodal Multi-Family Overlays will allow for higher densities and generally smaller lot sizes. The Neighborhood Commercial Nodal Overlay will be restricted to neighborhood commercial uses and will require dedication of public space. The Interchange Management Area Overlay will generally restrict development based on vehicle trip generation based on proposed development. Minimum density standards are established in the Single Family Residential District, the Retirement Residential District and the Medium Density Residential District and the street improvement cross sectional standards are generally reduced. Proposed Comprehensive Plan Map Amendments: In general, the Comprehensive Plan Map is amended to apply land use designations to areas proposed to be added to the City's Urban Growth Boundary, to apply proposed Overlay Districts to areas within the current Urban Growth Boundary and to change land use designations within the current Growth Boundary to maximize efficient use of land and provide more appropriate land use designations considering surrounding land use and future development potential. Proposed Zoning Map Amendments: The Zoning Map is amended to apply the Nodal Single Family Residential and Nodal Multi-Family Residential Overlay Districts to existing RS and RM zoned properties South of the Southerly extension of Evergreen Rd., the Southwest Industrial Reserve Overlay is applied to the Southerly portion of the WinCo Distribution Center property, the Interchange Management Area Overlay is applied to Commercial and Industrial zoned property generally located around the freeway interchange and to undeveloped residentially zoned properties South of the Southerly extension of Evergreen Rd. In addition, there are numerous zone changes proposed to properties within the existing City limits to maximize efficient use of land and provide more appropriate zoning considering existing Comprehensive Plan designation, surrounding land use and future development potential. Urban Growth Boundary Expansion Map: Based on the results of the City's Periodic Review, the City proposes to expand its Urban Growth Boundary to provide a 20-year buildable land supply and provide for 20-year projected economic growth. In conclusion, Staff recommended the Planning Commission hear the testimony and leave the record open for seven days to allow additional written testimony, at which time Staff will return on February 24, 2005 with responses to that testimony and the Commission will have the opportunity to review that before they begin deliberations on the matter. Staff recommended after that is all done that eventually the Commission will direct Staff to prepare a Final Order recommending that the Council adopt the proposed amendments to the Woodburn Urban Growth Boundary, Woodburn Comprehensive Plan Text and Map, the Woodburn Development Ordinance and the Woodburn Zoning Map. Planning Commission Meeting - February 3, 2005 Page 2 of 11 14. Greq Winterowd, Winterbrook Planninq Consultinq provided more details on the analysis and justification for the proposed amendments. He reviewed several key objectives they had when they began this project four years ago. Firstly, to develop and implement an economic opportunity analysis and strategy, which was adopted in 2002 by the City Council and provides the foundation for most of the planning work done today. He reported the City Council decided it was imperative to provide local jobs in the community so that people would not have to commute to Portland/Salem to work and to improve the quality of peoples lives as well as to make it so everyone in the community had an equal opportunity. The economists that looked at this and indicated the best way to achieve that is to provide land near I-5 because that is where development demand is located. Secondly, it was recognized that you needed to provide choice among suitable industrial sites, which is required by State Statute. Thirdly, provide sufficient buitdable land for future housing, parks and schools. Land for quality of life, good neighborhoods and land where people can afford to buy their own homes. Additionally, he stated they also had to look very carefully at the Statewide Planning Goals, which requires the use of land efficiently in order to make sure to use the land within the Urban Growth Boundary efficiently and welt. Mr. Winterowd mentioned the City is proposing a substantial increase in net densities on buildable land for that reason. They are asking for a more compact Urban Growth form but with good parks, schools and jobs to balance it out. He reported Oregon has many demanding requirements for compliance with Statewide Planning Goals and Periodic Review to ensure ongoing compliance. Mr. Winterowd stated he believed, at this point, the City has a package of plan amendments that meet the Statewide Planning Goals and achieved legitimate objectives of Periodic Review. Moreover, they looked carefully at the Marion County Framework Plan adopted two years ago and made sure that the critical goals and policies of the framework plan were incorporated into the Woodburn Comprehensive Plan. Next, they looked at the Achilles heel that Woodburn faces in terms of economic development, which is traffic congestion. He said they worked very closely with ODOT on revising the Transportation System Plan and developing ways to limit impacts on the interchange and to create alternative ways to get to that interchange so that it all does not have to go on Highway 211 and Highway 214. Mr. Winterowd further explained the goals require that we take the least productive agricultural land before we move into the more productive land and the direction of growth proposed generally has less productive agricultural land than some of the other choices. He further commented Woodburn is surrounded by Class 2, 3 and some Class 1 agricultural land and the only Class 1 agricultural land proposed for inclusion is land that is within the golf course already. Finally, they wanted to make sure in terms of quality of life and neighborhoods that what remains of Woodburn's wetlands, streams and flood plains are protected so you have open space connections to residential areas for future residents. Mr. Winterowd remarked the goal of a higher employment projection is to have more of a balance between the jobs in this community and the housing that is here. He explained they determined a 20-year land use needs for jobs they began with the Economic Opportunities Analysis and identified probable employment growth and then took a very careful look at the types of industries and basic employment that Woodburn can attract if it provides services, infrastructure and the land along I-5 to do that. They then followed the Statewide Statutory requirement and also a requirement of Statewide Planning Goat #9 and its administrative rule which compares the supply and demand and match them up. He indicated they attempted to provide the type of housing in adequate supply to meet 20-year needs and matched the buitdable lands with the housing needs and increased densities. The school needs were based on the existing ratio of developed school land population to make sure there is enough land for schools in the future. Mr. Winterowd stated an important and legitimate requirement in Oregon is that we use land efficiently within the Urban Growth Boundary, which he recommended by planning for higher density, over ten dwelling units per net buildable acre within the proposed buildable areas of the Urban Growth Boundary and increase a portion of multiple-family development to make it more affordable. The use of Nodal Development Pattern, which is an old fashioned situation where you have a neighborhood commercial area surrounded by housing where you can walk, bike or drive a car to get to and from shopping was also recommended. Also proposed is to bring in exception areas, which are those areas that are in the County now that State law requires that we bring in to the Urban Growth Boundary so that they can be provided with urban services and developed more efficiently so we can minimize impacts on agricultural land. Every exception area adjacent to the Growth Boundary has been brought in with the exception of MacLaren School and they did not seem to have a great likelihood of redevelopment at this point. Additionally, Master Planning was looked at in the Nodal Development Areas and in the Southwest industrial reserve. We have allowed the possibility of housing over retail development in Downtown Woodburn and in Nodal Development Areas. Also recommended were minimum density standards so that people do not use land that is zoned for 4,000 sq. ft. lots for 8,000 sq. ft. lots because that would be inefficient and would Planning Commissio~ Meeting - February 3, 2005 Page 3 of l 1 15 discourage development of infill, partially vacant and potentially redevelopable land. In the Nodal Development Areas we have a neighborhood commercial center surrounded by higher density residential, small lots single family supported by integrated park system and multi modal and connected transportation system; Master Planning is required and we have design standards and that everyone has adequate access to parks and schools. He further reported the land located on either side of 1-5, accessible to Highway 2t 4 and Highway 2t 1 via Butteville Road and Parr Road and a planned Southern arterial connection between Butteville Road and Highway 99 is reserved solely for Industrial use. Mr. Winterowd stated they propose to relieve congestion at Hwy. 214tHwy. 211/I-5 interchange by taking the traffic out of central Woodburn, moving it West of I-5 where it is easier to get onto I-5 for trucks and employees. Additionally, at the request and in collaboration of the Oregon Department of Transportation (ODOT) developed what is believed to be an innovative way of making sure that the limited access that we have to I-5, even after ODOT and the City of Woodburn spends millions of dollars on improving the interchange, we want to make sure that it does not use up that capacity prematurely and that it is used for planned commercial and industrial trips. Regulations have been developed that indicate you can not exceed specified numbers of trips in the peak hour and if you do, you are either a Conditional Use Permit or you have to find ways to decrease peak hour traffic demand to maintain the capacity of that interchange area for the jobs that the City wants to see. In closing, Mr. Winterowd commented he felt a thorough and credible job has been done in justifying the assumptions used and we have not inflated the land use needs. He briefly reviewed the proposed amendments and said everything else that has been proposed for inclusion within the Urban Growth Boundary is land that has already been determined by Marion County to be so cut up and parcelized that it cannot be used effectively for agricultural purposes. Mr. Winterowd encouraged testimony and requested to critically look at the work done and to tell the Planning Commission exactly what they think. TESTIMONY Terry Cole, Ore.qon Department of Transportation Reqion 2, 455 Airport Rd. SE, Salem, OR 97310 stated ODOT has worked with the City now for a number of years specifically with reference to the Transportation System Plan Update and are very pleased with the draft Transportation System Plan that has evolved from that process. The protections talked about for future interchange development, the other transportation system policies and plan elements will go a long way towards keeping that interchange in its current configuration and in the future as we hope to have it reconstructed viable through the planning period and beyond. Additionally, Mr. Cole felt what they have come up for Woodburn is an outstanding example that will be looked at as a model throughout the State for how you can protect an interchange in a growing urban area and do it in such a way that it supports local economic development but also retains the ability of people to travel both locally as well as statewide. Mr. Cole urged support and endorsement of the proposed Transportation System Plan and all of the supportive elements of Comprehensive Plan Update, as well as all the other elements submitted tonight. Dave Christoff, 671 Ironwood Terrace, Woodburn, OR 97071 spoke on behalf of the Woodburn School District. He stated the School District currently owns 19 ½ acres on Lincoln St. and they would like to have that included in the inventory. He indicated the difference between the consultant's numbers and the School Districts numbers shows fairly realistically that there was a shortage in the estimate for the School Districts properties. Currently there are no lands in the City that are large enough to site a school because a school has to be sited on a minimum of 10 acres and preferably a minimum of 15 acre site. Mr. Christoff reported they would like to have this included to the Urban Growth Boundary Expansion for when a bond measure is passed they would have a site in which to build a school on because they do not currently have anything that they could buy that is not already spoken for to site a school that is available to them. Nick Harville, Executive Director, Woodburn Chamber of Commerce, 2241 Country Club Rd., Woodburn, OR 97071 he reported he has about 15 years of business and economic development experience and he sees Woodburn as a community that has witnessed many changes since it was first established by Jesse Settlemier. Even when the City was incorporated in 1889, Mr. Settlemier knew that diversity of the business and community were going to be the keys to growth of Woodburn. Today, according to the State of Oregon, there are 772 businesses in Woodburn, 75.3 percent of those businesses employ less than 10 people. Mr. Harville explained this is a testament to the number of small businesses that help generate the flow of funds in this community. In looking at the major industries that employ citizens in this community you will find that 34.5 percent are employed in the retail trade and another 23.9 percent are Planning Commission Meeting - February 3, 2005 Page 4 of l l 16 employed in the service industry. These businesses are important to the community and provide needed services but in order to broaden the tax base, create new family waged jobs and further the diversity of the economy of Woodburn we need to expand and attract new businesses and companies to the area. He further indicated that at the present rate we will run out of developable lands within 5 years. In talking with City officials, the City of Woodburn has the best interest of the entire community at heart. The business development plans for the community call for further diversity and commerce generated, which would further support and enhance infrastructure and services provided by the City, schools and other community agencies and groups. Mr. Harville closed by saying new businesses in town help to support the retail and service businesses that already exist here by providing new dollars in to the community. Woodburn was born from agriculture when Jesse Settlemier used his vision and forethought to settle the community and he provided developable lots for new businesses that wanted to move to Woodburn. History seems to be repeating itself by expanding the Urban Growth Boundaries we are providing space for businesses that want to locate here. Robert Walter Staack, 245 Ben Brown Lane, Woodburn, OR 97071 commented he owns property at 585 Grant St., which is an area where Nodal density is intended for and he was not clear as to what that would result in on his renters and neighbors. Gre.q Winterowd clarified the Nodal development area is located in where Parr Rd. takes a dog leg and what they have tried to do for most of the community of Woodburn is not to go in to neighborhoods and up zone so that people's homes on individual lots are threatened. He further clarified that is why they are moving towards more vacant areas with the exception of Downtown for increased densities. Jose Castillo, 1068 2® St., Woodburn, OR 97071 through Chairperson Lima providing Spanish language interpretation, Mr. Castillo indicated he did not understand English very well and therefore, he was unclear as to what the hearing process was about. Staff reported there is a translator in the Planning office that could assist Mr. Castillo and encouraged he come by the office or he could submit written testimony, if he preferred. Alfonso, 1279 N. Second St., Woodburn, OR 97071 inquired whether his taxes will go up due to the proposed changes and if Second St. will be paved? Staff interjected paving is not part of this proposal and he is not aware of any proposal to pave Second St. however, the person to contact regarding that issue would be Randy Rohman with the Public Works Department. Will Denecke, OPUS Northwest, 1000 SW Broadway, Portland, OR 97034 was present tonight in support of the UGB proposal and would submit a letter to the Commission. He reported OPUS Northwest has 103 acres of industrial property that they are proposing to develop in to an industrial park located on the West side of I-5 and they have been involved in this process for 6-7 years. Mr. Denecke stated it is really nice to see this happening and for them to get to this stage. Additionally, he thought there is very good innovative planning by Staff and Winterbrook Consulting particularly in the areas of target industries and the interchange overlay. He said target industries are very demanding for a developer like OPUS Northwest because they just cannot go in and put up what they want. OPUS wilt be required to pick industries and job opportunities that fall into categories that the City has laid out with demanding criteria in terms of type as well as wage and income opportunities. Mr. Denecke further commented although it is a challenge for OPUS, it will give Woodburn the opportunity to improve its economic base. The interchange overlay is creative and a constructive approach to the I-5 interchange problem because everybody knows that currently I-5 is a big problem and unless that is managed correctly and improved, it will be a constraint on development for Woodburn and the UGB Expansion area. In closing, he added the discussion about a formula and how property owners might contribute if there is a funding gap and if the City will be looking for additional funding, perhaps in part from stakeholders or property owners, take place sooner rather than later. Erin Donnelly, 480 N. Third St., Woodburn, OR 97071 commented her property is currently zoned residential and under the new zoning it would change to commercial office. She stated the entire street, with the exception of two properties, is entirely single family housing. It is a very nice neighborhood with Planning Commission Meetb~g - February 3, 2005 Page 5 of 1 1 17 some of the original homes to Woodburn. The notable exception that is not a single family home is the old Woodburn Community Center. Mrs. Donnetly did not feel that it is beneficial to that neighborhood to change it to commercial office to facilitate the sale of the City property. It seemed very logical in her mind that the City has been trying to sell the property for quite some time and that is the connection for the City to want to have that be commercial office. She thought it would be better to keep the homes that are affordable and historical to Woodburn. Staff interjected the old City Community Center is already zoned Commercial General and is the only commercial general in the Downtown area. The reasoning for the commercial office is to make the zoning consistent with the Comprehensive Land Use Designation, which is commercial. The Comprehensive Plan back in 1980 contemplated that property would alt transition to commercial and all we are doing now is making the zoning consistent, which currently is inconsistent. Moreover, it is not legal to have inconsistencies between the zoning and Comprehensive Plan so we are bringing that zoning in to consistency with the Comprehensive Plan and we are trying to put on the least intensive and intrusive type commercial zone, which is commercial office. Martin Rohrer, 16 Abelard, Lake Oswego, OR 97035 reported he bought a property on Arney Rd. North of the Woodburn Company Stores Outlet Mall back in 1979 and at that time there were three neighbors. He said they have consistently presented to various bodies of Woodburn their desire to go in as a group to develop the area. Mr. Rohrer further commented he and his neighbors were a little surprised when they found that they were not included in the most recent proposal. There are about 150 acres that could be used for industrial land out of about 125 acres in the area that is designated. Firstly, that area is the only area not proposed to be included that is surrounded by three sides by land that would be included in the Urban Growth Boundary. Mr. Rohrer further remarked it would be much easier to make a case before Marion County, LCDC and 1,000 Friends of Oregon if we take land that is already surrounded rather than expanding into areas that are outside the proposed Urban Growth Boundary. Secondly, this property more than any of the others is pretty much ready to go in terms of utilities. It would not require a South bypass and new freeway access and it would simply require starting the development. His vision of an industrial area would allow for sales/marketing offices at the manufacturing location, which is a little different than what is envisioned in the Southwest area. Lastly, Mr. Rohrer stated the property on Arney Rd. comes much closer to meeting the requirements for most manufacturers and developers than the other properties currently proposed to be within the Urban Growth Boundary zone to industrial. Diane Mikkleson, 1090 N. First St., Woodburn, OR 97071 commented she was testifying as an individual. She said the plan for Woodburn's future presented tonight was designed to shape Woodburn's development as a community for the next 20 years. There are aspects of the plan that appear to deserve support including Downtown development and the plans for expanded recreational facilities and opportunities for Woodburn citizens. It was Ms. Mikkleson's belief that other aspects of the plan need to be given further thought. The quest for mega employers may not be the best economic choice for Woodburn especially if those companies work force needs can not be met by those of us already living in or near Woodburn. Moreover, the drive to expand Woodburn's UGB onto valuable farm lands while allowing vacant and underdeveloped sites within our current boundaries to continue to be idle is, at best, expensive and wasteful. She also remarked the community still relies on agriculture as one of its most important economic factors and we should look for ways to support and further develop this vital industry. A plan that emphasizes the accelerated development of large homes on large lots is not in the best interest of the community whose primary need is for sufficient multi-family housing. Additionally, it is important to support and encourage small and medium sized businesses that exist in Woodburn and actively recruit more of them. The need for a proposed Transportation Plan to create traffic patterns that preserve and promote the integrity and viability of Woodburn's core area rather than creating a ring-road that would pull development further away from existing businesses and already established infrastructure, which costs tax payers millions of additional dollars. She felt we could build a stronger, cohesive community by working together as we move further into the 21st Century. Bob Lindsey, 7505 Windsor Island Rd. N., Salem, OR said he had the privilege of serving Salem in the years 1967-1977 first as a member of Council and then as Mayor from 1973-1977. He was part of the Urban Growth studies, which led to the concept of Urban Growth Boundaries and brought forth as part of the process Senate Bill 100. Mr. Lindsey commented the proposal brought before the Commission tonight is not in Woodburn's best interest and is a recipe for expectations never met. He further reported Pla~mit~g Commissio~ Meeting - February 3, 2005 Page 6 of 11 18 there are two issues that surfaced from the Urban Growth studies in the early 70's that are still germane today. The public cost of development and the ability of urban centers to fund those costs and for cities to survive need to address two issues: patterns of design and development and develop an elastic funding base or they are going to go broke. Mr. Lindsey described the City of Salem as a classic example of an urban center in deep economic trouble. In the summer of 1976, Salem had a triple A credit rating and Salem's credit rating as of today has plummeted down to an A. In Salem as the population numbers increased, all systems came under stress and the numbers increased, the library hours decreased, the aquatic program slipped away, traffic issues greatly increased, the public safety response decreased, the capacity to supply and treat water decreased, and the livability and Iovability in Salem is diminished. He further added the consultants proposal in its present form leads you right down that path. Woodbum has more than enough land mass in its existing urban growth boundary to accommodate those population numbers that have been assigned by Marion County. In closing, he pointed out Woodburn is a service center for the agricultural industry and this approach is not within Woodburn's economic capacity. He commented Woodburn's best course of action would be to look inward and play to its strength. The challenge is to create a sense of identify and a place that speaks to livability and the challenge is how to build that livable lovable community and not bring pain and misery to the tax payers. Kathleen Carl, 13324 Carl Rd. NE, Hubbard, OR 97032 strongly believed that Woodburn's Comprehensive Plan needs to develop an economic model that benefits the existing population like focusing on local businesses rather than large employers. She remarked many new jobs are created without land being developed such as a processing plant or manufacturer adding a second shift or a retail business expands its hours and hires new people. Ms. Carl hoped the Planning Commission looked at the needs of existing business. She believed Woodburn's economic model should focus as much as possible on utilizing existing infrastructure, which takes care of our tax payers investment. Expanding to new land is not of benefit to most taxpayers and a new economic model that turns more inward would capitalize on our assets and help our citizens. Ms. Carl closed by stating Woodburn really needs to build a city that works together and looks at businesses that are putting money into Woodburn's pocket right now. We can accommodate the goals of Woodbum with an expansion that is more limited. Lolita Carl, 13324 Carl Rd., Hubbard, OR 97032 urged to look 50-75-150 yrs. into the future. She reported her farm has already had five generations of family living on it in only 90 years. If we think short term, our beautiful valley of mild climate and rich resource land will be paved over. Some day we might not be able to afford to import strawberries and apples from thousands of miles away because agriculture is Marion County's number one industry and you can not stack farm fields on top of each other. Moreover, much of the housing and commercial needs for a small city could easily go vertical because it is more efficient to have apartments with several stories over commercial as seen in many Downtowns. Ms. Carl further added this smaller footprint makes the city more walkable more livable and engenders community spirit. She reported Woodburn has ignored the enormous egg production supporting and surrounding it and the thousands of its residents who work in the egg industry. Reference was made to EcoNorthwest Woodburn Economic Analysis and she pointed out most of these people's occupation has not been counted. Additionally, she indicated Woodburn has recently spent a couple of millions of tax payers dollars for land for additional sewage treatment and roadway construction, this only for the land not for the future millions to develop it. She felt Woodburn has a dependable and growing economic base in place with agri-business and the farmers are not pushing for new roads and infrastructure. The ones who are really pushing for development and expansion are consultants who are paid to say we need it. She pointed out Greg Winterowd was simultaneously paid by Opus Northwest to try to get its land in the expanded UGB while being paid by the City of Woodburn, which is a serious conflict of interest that can not be ignored. In closing, Ms. Carl remarked our rich Willamette Valley soil can produce new crops of food every single year to feed endless generations. How many industries can say that? Randy Sebastian, 1677 Boones Ferry Rd., Lake Oswe.qo, OR supported the Winterowd Planning Plan. He said Woodburn has unique opportunity as the Tukwita Golf Course is the only course in the Portland Metro Area where people can actually buy a new home on a golf course. This is attracting new residents who are coming in from Lake Oswego, Tigard, West Linn, Tualatin and are typically empty nesters paying City taxes whose kids are gone and are not putting pressure on local schools. Moreover, ali the utilities are new and are being brought to the site with an emergency access road being built to the site this summer. Mr. Sebastian further commented he has been building at Tukwila Golf Course over the last Planning Commission Meeting - February 3, 2005 Page 7 of 11 19 four years. Although it was slow to start, we now have great momentum and have a waiting list for future phases for people wanting to move to the Tukwila Golf Course. Vasily Mokanukoff, 1031 Queen City Blvd., Woodburn, OR 97071 indicated he was not familiar with the proposal and that such plan even existed. He expressed concerns with the amount of acreage that is being proposed for industrialization. Staff informed Mr. Mokanukoff that all of the proposed plans are on the City's website, at the Library or at City Hall in the Planning Division. He stated one of the Planners could go over any questions Mr. Mokanukoff might have if he came by City Hall. Pat Doyle, Kelley, Kelley, Doyle, 110 N. Second St., Silverton, OR 97381 represented Mr. Date Baker who owns 10 acres zoned AR in the Butteville expansion area and there are five homes currently on the property. He indicated they were in favor of the UGB expansion. Mr. Doyle entered a legal memorandum into the record and briefly summarized the contents of the memo. He reported this property is already a goal exception property and it gets a special favor on that basis alone. It is committed to residential use and considered less productive farmland so we are not reaching in to any of the high productive farmland. Secondly, in 1992 the City of Woodburn adopted Ordinance 2081, which essentially expanded the UGB to take in this property. Marion County disagreed with that conclusion at the time based on need, however, in the ensuing years we have seen that in fact that need is there and the 10 acres of land will help the City of Woodburn to meet its buildable lands requirements and will help the City to put people in to homes and to make a more livable community. Toni Spencer, 13736 Wilco Hwy. NE, Woodburn, OR 97071 stated she is a native Oregonian that has lived most of her life on a working cattle ranch in a rural area. She felt compelled as a concerned citizen to comment on the proposed expansion of the UGB. Ms. Spencer indicated she had great respect for those that live and work on the land as well as she realizes the importance of the economic stability that it provides the community. Agriculture and food products are Oregon's largest export by volume and the value of these products has increased in 16 of the past 18 years, according to the Oregon Department of Agriculture and Marion County ranks number one in Oregon for growth agricultural sales. She expressed concerns in that we may be too eager to include valuable prime farmland in the proposed UGB. There are vacant properties in areas within the current UGB that can be redeveloped and reoccupied. Additionally, there are at least 8 properties in the industrial park just off Hwy. 214 for lease or for sale and there was one 137,000 sq. ft. property sitting empty. Ms. Spencer further commented all vacant buildings are not even counted in the consultant's inventory of vacant industrial properties. She indicated we have a responsibility to solicit new industry in to our underdeveloped and undeveloped properties before we expand the current UGB because we have the capacity for new industries in our current UGB. It was her hope that we carefully determine and decide what is really needed before including prime farmland in the proposed UGB. Although we all would like to see economic progress in Woodburn, we have to remember that new industry can move in, cost the taxpayers millions of dollars in taxes for sewer, water, sidewalks, roads and then up and leave just as fast leaving us with the unemployed and the bill because once prime farmland is paved over, it is gone forever. Kay Peterson, 13740 Wilco Hwy., NE, Woodburn, OR 97071 she asked the Commission to carefully consider the testimony that is being submitted this evening. We all want Woodburn to be an economically viable community, however, some of us just differ on how to accomplish this. She described her mother having been born in Woodburn and raised on a dairy farm in Hubbard. Additionally, her husband is a small business owner in Woodburn located on Evergreen Rd. South of Hwy. 214 and are members of the Woodburn Chamber of Commerce. Both oppose the proposed expansion of the Urban Growth Boundary. Ms. Peterson commented expanding the UGB would only make the traffic nightmare on Hwy. 214 and the freeway interchange worse. She indicated more and more of her husband's clients have complained about how difficult it is to negotiate the traffic when driving to his office. Pushing growth on Woodburn would do nothing to improve the livability of this community. Ms. Peterson felt it was wrong to take some of the best farmland in the country out of production forever in order to attempt to attract some high tech industry to Woodburn, which she doubted a high tech industry would locate in Woodburn because many of the high tech industries have abandoned the United States and gone to China. Agriculture can quickly retool to respond to current market conditions as other industries just pick up and Planning Commission Meeting - February 3, 2005 Page 8 of 11 20 leave. In conclusion, Ms. Peterson stated the 500 acres Winterbrook Consulting says is needed for industrial sites should stay as it is, productive farmland for our benefit and that of the future generation. Tom Fessler, 14025 Dominic Rd., Mt. An,qel, OR 97362 said he is a fourth generation farmer in the Woodburn area and is an affected landowner in the expansion proposal. He favored the expansion proposal as it currently stands. Mike Celmer, 389 W. Hayes St., Woodburn, OR 97071 reported his family searched for about 2 ½ yrs. consistently trying to find a home and ended up in Woodburn across the street from the old community center. He said he works in Woodburn and purchases goods and services here. Mr. Celmer stated he would have like to have known of the proposal four years ago before he purchased his home because he probably would have not ended up living in Woodburn because the proposal affects him financially. He felt if the City continues with this proposal it would take equity away from his home and basically throwing it away. 5-MINUTE BREAK AT 8:45 PM Roger Alfred, 1120 NW Couch St., Portland, OR 97209 stated he was present tonight on behalf of Renaissance Development. He reported Renaissance Development has developed the Links at Tukwila, which is immediately South of the proposed UGB and supports the proposal put forth by Staff to extend the UGB to include that area to the North which consists mostly of the OGA Golf Course. Mr. Alfred further commented Staff has done a very thorough and very comprehensive analysis. The UGB Amendment is a very complex process that requires the weighing of not only some fairly strict legal rules but also a lot of competing interests, which he felt Staff has done a very good job in weighing all those things. Moreover, the primary thing that the law requires is under Goal 14 is an orderly and efficient extension of urban land onto rural land. The OGA parcel is a unique opportunity from a legal prospective in that you are able to expand onto an area that is not currently in any kind of resource use at all and it is already committed to the golf course use and hopefully where Renaissance will be able to add another 150 homes and not simultaneously taking any farmland out of production. Lastly, Mr. Alfred mentioned expansion in that direction is consistent with prior City decisions in that approval of the most recent phase of the Links of Tukwila Subdivision also included a condition requiring the extension of the road across from the North over to Boones Ferry Rd., which is consistent with the future prospect of more residential development in that area that can fit in the golf course. Sid Friedman, 1,000 Friends of Oreqon, 189 Liberty St. NE #307A, Salem, OR 97071 pointed out many community members have a very different vision for Woodburn's economic future than the vision presented by the consultant. He commented that community vision can be accommodated using very reasonable assumptions that are at least as legally defensible as the consultant's. If the consultant's recommendation is adopted, Woodburn would have 500 net buildable acres of developable industrial land, which is a huge amount of industrial land. He compared Medford's proposed 431 acres of industrial land for the needs of an additional 94,000 thousand people. Salem/Keizer with a population that is seven or eight times the size of Woodburn's thinks it could take decades to develop the 500 acre Mill Creek Industrial site. Additionally, Woodburn has 7% of Marion County's population, 8% of Marion County's jobs and between 1990-2000, it captured 11% of Marion County's job growth. Yet the Winterbrook projection assumes that Woodburn would capture 23% of Marion County's projected future job growth, which he believed was unreasonably optimistic. However, even if this inflated projection occurs, by the consultant's own figures, the 503 acres of industrial land would accommodate far more industrial employees than the 38,136 projected under the consultant's most optimistic scenario. Theodora Tarbet, 13305 Carl Rd., Hubbard, OR 97032 commented the Economic Opportunities Analysis prepared for Woodburn concedes that it significantly underestimates agricultural employment. The employment in the agricultural sector grew by 40% in the Woodburn zip code between 1990-2000. She indicated the Economic Opportunity Analysis ignores Woodburn's location in the middle of productive farmland and at the center of the County's number one industry. Additionally, it fails to identify Woodburn's role as a commercial and cultural center for the Valley's Hispanic population as a possible advantage. Instead, it lists an employment goal that Woodburn lose up to 222 agricultural section jobs by 2020. Woodburn is surrounded by prime and high value farmland, which is protected by State law and Oregon Revised Statute Chapter 197.298 governs UGB expansions. In particular, it dictates priority Plan~ing Commission Meeting - February 3, 2005 Page 9 of 11 21 factors for bringing land into a UGB and the Statute requires that land of lower soil classification be included in a UGB before land of higher soil classification. Woodburn should expand further South on to the lands of lower soil quality if Woodburn can prove a factual basis for needing to include more land. The same Statute also prioritizes acknowledged exception areas adjacent to a UGB as land that should be included in the UGB before lower priority lands unless the exception areas can not reasonably accommodate new development. Ms. Tarbet used the Carl Road exception area in which this statute applies. She felt it is not necessary to bring all 13 acres of the exception areas since it can not reasonably accommodate identified land needs. Amanda Deyerle, 17244 Arbor Rd. NE, Woodburn, OR 97071 addressed the transportation issue and remarked transportation plans are generally highly technical and a person can easily get lost in the numbers. The important part of a transportation plan is how it will affect the livability of neighborhoods and viability of economic activity. Ms. Deyerle pointed out I-5 separates commercial and residential development from the rest of the City and Highway 214 splits schools and neighborhoods on the North from the rest of the community to the South. The Transportation Plan needs to address the fragmentation of commercial and residential areas. She did not believe the funding sources available will be able to make the changes except on a piecemeal basis. In the meantime, development will be occurring that has no access to Parr Rd. and traffic will be forced back in to the residential areas between the proposed industries and Highway 214. Ms. Deyede reported experience shows that building more roads increases, traffic, increases development and puts tremendous stress on core areas, i.e., Lancaster. She further commented Highway 214 bypass in Woodburn pulls development towards the outer areas economically depressing Downtown and is one of the biggest traffic headaches in the City. Jim Griqorieff, 1315 James St., Woodburn, OR 97071 indicated he owns property that is adjoined by two RM properties and requested that the property go with the original comprehensive plan and become RM. He stated the property has unique situations, which include a 2-story fourplex directly behind and within 10 fl. of the property line, the entry side of the units face his back yard and the second stories have windows that look right over his back yard. Needless to say they do not share the same privacy as the other RS lots because the other lots have a 25 ft. driveway plus a single-story garage behind them before the 2-story apartments begin and even then they have east and west entry ways, which allows much more privacy as compared to his lot. Mr. Grigorieff also mentioned he purchased Parkdale Manor, which are the apartments to the West of his property and he intends on being on-site manager and provide maintenance for the apartments. In conclusion, he said based on the criteria stated in the notice, his lot would be better served adhering to the original comprehensive plan and going through and RM zone designation because most of the property on the block is made up of two large apartment complexes, the Woodburn Armory and therefore, future development in fitting with the surrounding properties as stated in the notice would convince him that an RM zoning for his lot would be best for the comprehensive plan and for future plans. Craiq Robinson, 1345 James St., Woodburn, OR 97071 said he would like to keep his property RS because he has apartments behind him and gets trash thrown over his fence, urination and all sorts of nuisances and would hate to see this happen on alt three sides of his property. Tom Brawley, 4536 Wintercreek Rd., Jefferson, OR represented the Marion County Farm Bureau and an industry that generated half billion dollars last year, which is agriculture. Marion Country Farm Bureau is interested in keeping and preserving all productive agricultural land. He stated one square mile of land is a lot of land base to be lost to an industry. We have a unique climate and a unique opportunity for more commercial products grown than anywhere else in the world. Natural resources that are non-renewable have to be protected and it begins here and needs to continue. Mr. Brawley commented there are three alternatives, look at infill, reduce the number of acres proposed and ease in to it and not take a big block and look for other avenues, or do nothing and let the status ride as it is. He felt the plan weakens a proven industry for an unknown. Staff restated the record would be left open until 5 pm Thursday, February 10th and encouraged anyone who would like to submit additional written testimony addressed to City of Woodburn Planning Department, 270 Montgomery St., Woodburn, OR 97071. Staff will then review all the testimony and provide the Commission with responses, as applicable, to that testimony at least a week before the next Planning Commission Meeting - February 3, 2005 Page 10 of 11 22 hearing, assuming tonight's hearing is continued until February 24th, at which time the Commission may continue with deliberations if they chose to do so. Vice Chairperson Bandelow moved to close the portion for public testimony except for written testimony that would remain open for an additional seven days and we continue the hearing until February 24th, at which time discussion among the Commission would be open. Commissioner Griqorieff seconded the motion. Motion unanimously carried. ADJOURNMENT Vice Chairperson Bandelow moved to adjourn the meeting. Commissioner Hutchison seconded the motion, which carried unanimously. Meeting adjourned at 9:30 pm. CLAUDIO LIMA, ERSON ATTEST Jim Mulderi CommUnit~ Development Director City of W0Odburn, Oregon Date Planning Commission Meeting - February 3, 2005 Pagellof 11 :23 8C WOODBURN PLANNING COMMISSION MEETING MINUTES February 10, 2005 CONVENED The Planning Commission met in a regular session at 7:00 p.m. in City Hall Council Chambers with Chairperson Lima presiding. ROLL CALL Chairperson Lima P Commissioner Vancil P Commissioner Grigorieff P Vice Chairperson Bandelow P Commissioner Hutchison P Staff Present: Naomi Zwerdling, Senior Planner Chairperson Lima provided an opening statement for Public Hearing. MINUTES A__~. Woodburn Planning Commission Minutes of January 27,2005 Chairperson Bandelow moved to accept the minutes as written. Commissioner Grigorieff seconded the motion, which unanimously carried. BUSINESS FROM THE AUDIENCE None COMMUNICATIONS A_~. Woodburn City Council Work Session Minutes of January 8, 2005 B__,. Woodburn City Council Minutes of January 10, 2005 PUBLIC HEARING A__~. Partition 04-06, Variance 04-26 and Variance 05-02, request to partition property located at 1123 McKinley Street into two parcels, variance request to the street standards on McKinley Street and variance request to lot orientation, Greg Allen, aDr)licant. Staff read the applicable ORS Statement and provided a presentation as reflected in the Staff Report. Staff recommended approval of the requests subject to the conditions of approval listed in the Staff Report. Commissioner Yancil inquired whether there is any chance of McKinley St. ever going to need a 60 ft. access? Staff replied McKinley is basically a dead end street and is not on the Capital Improvement Plan. Chairperson Lima mentioned the applicant is not proposing to build any additions to the existing home as part of this partition request and asked if the design review will be for parcel #2? Staff stated the applicant is not proposing to put anything on there at this time. However, they would be required to obtain a building permit application in the future and would go through our architectural design standards. Additionally, they would be required to meet all of the requirements of the Woodburn Development Ordinance. Planning Commission Meeting - February 10, 2005 Page 1 of 3 24 TESTIMONY BY THE APPLICANT Greg. Allen, GMA Construction, P.O. Box 926, Lake Oswego, OR 97034 agreed with the Staff Report. TESTIMONY BY PROPONENT None TESTIMONY BY OPPONENT None DISCUSSION Chairperson Lima closed the public hearing and opened up for discussion among the Commission. Vice Chairperson Bandelow commented there have been some discussions in the past about having to have a variance because of narrow streets. She stated that is something that needs to be addressed so that people do not have to apply for a variance on something that they have no control over and on a street that is never going to be improved to that width. Nonetheless, she saw no problems with the current request and it appeared to be a nice good sized infill lot. Commissioner Vancil concurred on both counts in that revisions need to be made to the Transportation and Development Ordinance sooner rather than later so that the public does not have to deal with what he called a nuisance variance because it really is not reasonable. However, he pointed out the applicant is making good use of the land and he would support the request. Commissioner Grigorieff also agreed with her fellow Commissioners. Vice Chairperson Bandelow moved to approved Partition 04-06, Variance 04-26 and Variance 05-02 subject to the conditions of approval including putting in the sidewalk and asked Staff return with facts and findings to support that decision. Commissioner Grigorieff seconded the motion. Motion unanimously carried. ITEMS FOR ACTION A_~. Final Order for Planned Unit Development 04-05 and Variance 04-31, request to modify Links at TUkwila PUD Phase III to allow 15 ft. rear yard setback, Renaissance Development, applicant. Vice Chairperson Bandelow moved to approve the Final Order as written. Commissioner Grigorieff seconded the motion, which carried unanimously. B__~. Final Order for Planned Unit Development 04-06 and Variance 04-32, request to modify Links at Tukwila PUD Phases IV and V to allow 15 ft. rear yard setback, Renaissance Development. ar)~olicant. Vice Chairperson Bandelow made a motion for the approval of the Final Order and Commissioner Gri9orieff seconded the motion. Motion unamimously carried. C_~. Final Order for Legislative Amendment 05-02, City-initiated proposal to amend the Woodburn Development Ordinance. Vice Chairperson Bandelow moved to adopt the Final Order. Commissioner Grigorieff seconded the motion. Motion carried unanimously. Commissioner Vancil apologized for not being present for the discussion of the actual approval and indicated some time this year the whole issue of street standards needs to be addressed, since that was not addressed in this revision. DISCUSSION ITEMS None Planning Commission Meeting - February 10, 2005 Page 2 of 3 25 REPORTS A__~. Building Activity for January 2005 B_~. Planning Project Tracking Sheet (revised 2-2-05) BUSINESS FROM THE COMMISSION Commissioner Vanc.i! commented as he read all of the material in preparation for next weeks 'deliberations regarding the Legislative Amendment, it occurred to him that with Measure 37, whether the City has the authority to tell landowners what they should do with their land if we say for instance that we want to have a Nodal Development in the Southwest corner of the City? Vice Chairperson Bandelow interjected Measure 37 only applies to land use that has been imposed on the owner after their purchase. Consequently, there are really not very many properties that are owned that have been held for a long period of time. Commissioner Vanci! indicated he understood that but it seemed to him like we would be imposing land use restriction in 2005 real time if for instance we zoned it with a new zone that was created by the whole process. Vice Chairperson Bandelow further remarked the question is whether or not that is restrictive and whether or not it is causing a hardship. In reality, in all probability the value of those Properties would increase. She clarified she has obtained information from various classes and from the Realtors Association and generally the opinion is if there is no finanCial hardship, the only way someone could apply under Measure 37 would be if they purchased the property for a specific project and no longer could do that. However, the option exists for them to be bought out. Staff also commented there were property owners who want to be incorporated in the Urban Growth Boundary because it expands their use greatly. Chai~Lima asked Staff what is the status on the old K-mart building? He also mentioned Grocery Outlet is looking for a building to settle in Woodburn and he wOndered what places they are looking at. Staff reported there is an application to convert the K-mart building to a Silverton Hospital Wellness Center and will be coming before the Commission soon. ADJOURNMENT Motion was made to adjourn the meeting and was seconded. Meeting adjourned at 7:30 pm. APPROVED CLAUDIO LIMA, CHAIRPERSON DATE Naomi Zwerdling, Senior Planner City of Woodburn, Oregon Planning Commission Meeting - February 10, 2005 Date Page 3 of 3 26 8D MINUTES MONTHLY MEETING OF WOODBUP2~ PUBLIC LIBRARY BOARD DATE: ROLL CALL: STAFF PRESENT: GUESTS: CALL TO ORDER: SECRETARY'S REPORT: February 9, 2005 Mary Chadwick - Present Yesenia Chavez - Present Neal Hawes - Present Ardis Knauf- Present Kay Kmka - Absent Patricia Will - Present Catherine Holland - Present Linda Sprauer, Library Director Vicki Musser, Recording Secretary None. President Catherine Holland called the meeting to order at 7 pm. The minutes of January 12, 2005 were approved and seconded. CORRESPONDENCE: None. PUBLIC COMMENT: None. DIRECTOR'S REPORT: Monthly Statistics: The statistics are incomplete in several areas this month. Holdings, Patron Loan Count and Circulation statistics were unavailable, due to the Millennium changeover. Library staff is still in the process of becoming familiar with new ways to get final statistics. Circulation was down slightly in comparison with January last year. This may be due to winter weather, or perhaps to general adaptation to Millennium Silver. The People Count totaled 18,365 for January. (This number is reached by recording the patrons passing by a digital counter on each door every day, and then taking that raw score and dividing by 2 to account for their leaving, and then subtracting two percent to account for children and/or staff entering and exiting several times. The final result is recorded on the monthly statistics and kept indefinitely. Activities: The regular Library activities continue as usual. Kids Book Club, Infant-Toddler Tirne, Spanish Storytime, Library Storytime and Third Thursday Teens are all held on a regular basis. The first of four musical presentations, all of 1 27 which are sponsored by the Friends of the Library, will take place on Sunday, February 13, at 2 pm in City Hall. Glenda McLean, a local accordion player, will entertain her audience with a variety of music, including polkas, sing-a-longs and familiar standards. Volunteers of the Month: The Volunteers of the Month for February are Tony and Donna Baker. Tony has volunteered at the Library for five years, and during much of that time, his wife Donna has accompanied him and helped to process holds. A year ago, Donna became an official volunteer. They have both excelled at their job of finding and processing holds placed by patrons at other libraries in the CCRLS network. They have been very faithful, as well as flexible. They were agreeable to changing the day they usually came in, when other volunteers needed to trade days. Tony and Donna's behind- the-scenes volunteer work helps the Library run smoothly. CCRLS Update: The Library staff continues to practice and learn about Millennium Silver. Official training on the database system has ended. The staff is doing a good job of adapting and implementing new procedures. The Millennium system can be accessed on the Library's web page online at www.ccrls.org/woodburn/. Holiday Closures: Library holidays include Monday, February 21, President's Day, and Sunday, March 27th, which is Easter Sunday. Friends of the Library.: Neal Hawes, Library Board Member and Treasurer for the Friends of the Library, reported that preparation for Music in the Park is progressing. PGE is a new sponsor this year, and has promised a $1,000 sponsorship. Sandy Kinney is getting close to setting Music in the Park's summer concert dates. She is still waiting to hear from Joni Harms, a country music singer who has a large following and performs at the Music in the Park concerts every year. Joni may do either the first concert of the season, or the 4th of July concert, which is an extra performance this year, sponsored by the Friends of the Library as part of a plan to raise the Library's visibility. The Friends are in pre-negotiation with Northwest Sound and Lighting to help us with the light and sound quality at the concerts. John Brown, the Woodburn City Administrator, has consented to allowing WASP, a Senior Estates group, to install electricity in the Library Park. T-shirts may be made and sold at Music in the Park this year. Neal 2 28 OLD BUSINESS: NEW BUSINESS: Hawes will do research on t-shirt costs before a decision is rnade. He will also start collecting pledges made by various downtown businesses to support this years' concert series. There will be a Friends of the Library Book Sale on the 23rd and 24th of April. This is slightly later than usual, due to AARP Tax Aid needing the Carnegie Room until the tax deadline of April 15th. The next quarterly meeting of the Friends of the Library will be on Monday, March 7, at 2:30 pm in the Carnegie Roorn. None. The public availability of the meeting rooms at the Library was discussed at the Board meeting. Recently, several political groups have reserved space for their meetings, and in doing so raised the question of who can reserve and use these rooms. It was suggested that only groups who are card-carrying patrons of the Library be allowed to reserve the meeting rooms, thus assuring that such groups are supporting the Library with their taxes. After some discussion, the Board decided that any person or group is eligible. The Library does not endorse any group, political or otherwise, and will not discriminate. Groups can reserve a meeting room on a one-time basis only. If the meeting is non-profit, there is no fee to use the room. A meeting held for profit will be charged an hourly fee. The Multi-Purpose and Carnegie Rooms are both used by the Library for programs, as well as for the Friends of the Library's bi-annual Book Sales. OLA Registration: There is a March 1 deadline for Early- Bird Registration. In the past, the Library has paid the registration fees for the Library Board members and Library staff. Both Board members and staff are encouraged to look through the OLA courses offered and to attend any sessions, though it is doubtful that the Library will be able to pay for them. NORPAC, a large, agricultural products processing company, ,,vas overcharged taxes, and via a lawsuit, was awarded a 4.5 million dollar settlement. This was charged back to all of the taxing entities in Marion County. The portion being charged to the City of Woodburn is 100,000. The Woodburn Public Library is required to return $13,963.00 out of its budget. John Brown is encouraging departments to pay the money this year, so the previously allocated budget will need to be adjusted. It is hoped that the Library will not have to reduce staff hours or the book budget. 3 29 BUSINESS TO/FROM THE CITY COUNCIL AND/OR MAYOR: All city Departments are putting together a budget proposal for next year. The Library has been told to stay within the same dollar amount as the previous year, which will call for further reductions. ADJOUPA',tMENT: The meeting was adjourned at 7:34 pm. Respectfully submitted, ? Vicki Musser 4 30 WooI U tN 8E February' 22, 2005 TO: FROM: SUBJECT: Mayor and City Council through City Administrator Ben Gillespie, Finance Dire Audit Report RECOMMENDATION: Acceptrepod BACKGROUND,: The 2003-04 financial statements have been finalized, and the City's auditors, Boldt, Carlisle, & Smith, have issued an unqualified opinion on them. As required by statute the financial statements and the opinion have been filed with the Secretary of State. The auditors stated: In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each rnajor fund and the aggregate remaining fund information of City of Woodburn, as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons... Regarding compliance with laws, regulations, contracts, and grants they wrote: The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. They also wrote: We noted no matters involving the internal control over financial reporting and its operation that ,we consider to be material weaknesses. Agenda Item Review: City Administrator~~ City Attorney ~ 31 Mayor and City Council February 22, 2005 Page 2 Copies of the document are available for review in the Finance Office. This is the second year the City has prepared financial statements using the new financial reporting model required by GASB Statement No 34. Of the many changes embodied in GASB 34 the most notable to the users of the City's financial statements are: Management's discussion and analysis Government wide financial statements Capitalizing fixed assets in the governmental funds Management's discussion and analysis (MD & A) provides a narrative introduc- tion and overview that will help users interpret the basic financial statements. The MD & A also is an analysis of key data presented in the financial statements. It includes, for example, explanations of Material changes in net assets (fund balances) Significant changes in revenue or expenses Budgetary highlights Government wide financial statements present the activities for all funds in one statement. This is intended to help the reader grasp the impact of the govern- ment entity as a whole. It is how citizens most often view local government. Prior to GASB 34 fixed assets were capitalized and depreciated only in the pro- prietary funds (water and sewer utility funds); in the governmental funds fixed assets were expensed at the time of purchase. This changed under GASB 34. Governmental funds' fixed assets, such as streets and City Hall, are now record- ed on the general ledger at historical cost and are then depreciated. DISCUSSION: The changes wrought by GASB 34 on governmental accounting are the most sweeping since the late 1940's and they alter the very fundamentals of how municipalities report their financial operations. The conversion last year to the GASB 34 reporting model was a major undertaking, and preparation of the financial statements this year was considerably more time consuming than in the past. However, management believes that the usefulness to readers of the new reporting model justifies the expense in time and money. 32 Mayor and City Council February 22, 2005 Page 3 FINANCIAL IMPACT: The audit was conducted at a cost of $23,850. This represents the original contract amount ($22,350) plus $1,500 for additional work preparing the Fixed Asset schedules. This was necessary to complete the implementation of GASB 34 reporting requirements for fixed assets in the governmental funds. The City's software was unable to search the fixed assets database in a way that identified the aberrations caused by last year's conversion. The audit firm had software that allowed them to mine the City's database to produce the needed reports. 33 Mayor and City Council February 22, 2005 Page 4 The Annual Financial Report has been given to the City Council under separate cover and is available for review by the public in the City Administrator's office BOLDT, CARLI"SLE & SM1'TH LLC CERTTFIED PUBLIC ACCOUNTANTS PARTNERSHIP · ASSURANCE · INNOVATION ANNUAL FINANCIAL REPORT Year Ended June 30, 2004 I I SALEM: 480 CHURCH STREET S.E. · SALEM, OR 97301 · PHONE: (503) 585-7751 · FAX: (503) 370-3781 STAYTON: 408 NORTH THIRD AVENUE · STAYTON, OR 97383 · PHONE: (503) 769-2186 · FAX: (503) 769-4312 Richard Bjelland 888 Wilson Street Woodburn, OR 97071 Elida Sifuentez 860 E Lincoln Street Woodbum, OR 97071 Pete McCallum 370 Ironwood Terrace Woodburn, OR 97071 Jim Cox 1530 Ranier Way Woodburn, OR 97071 Walter Nichols 1460 Willow Avenue Woodburn, OR 97071 Frank Lonergan 245 N 2nd Street Woodburn, OR 97071 CITY OF WOODBURN CITY OFFICIALS Year Ended June 30, 2004 Mayor Kathryn Figley (Term expires December 2004) 601 S. Settlemier Woodburn, OR 97071 Council Members Staff John Brown, City Administrator Janice Zyryanoff, Municipal dudge N. Robert Shields, City Attorney Ben Gillespie, Finance Director Term Expkes December 2004 December 2004 December 2006 December 2006 December 2004 December 2006 INDEPENDENT AUDITOR'S REPORT (Continued) The management's discussion and analysis on pages a through f is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards as listed in the Grant Compliance - Single Audit section of the table of contents is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of CITY OF WOODBURN. The combining and individual fund financial statements and schedules and the Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Boldt, Carlisle & Smith, LLC Certified Public Accountants Salem, Oregon October 17, 2004 By: Douglas C. Parham, Member B CITY OF WOODBURN TABLE OF CONTENTS Year Ended June 30, 2004 INDEPENDENT AUDITOR'S REPORT .................................................................................................................................. MANAGEMENT'S DISCUSSION AND ANALYSIS .............................................................................................................. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets ......................................................................................................... i ............................................. Statement of Activities ......................................................................................................................................................... Fund Financial Statements Governmental Funds Balance Sheet ................................................................................................................................................................ Statement of Revenues, E×peuditures and Changes in Fund Balances .......................................................................... Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities ....................................................................................................................................... Statements of Revenues, Expenditures and Changes in Balance - Budget and Actual General .................................................................................................................................................................... Street ........................................................................................................................................................................ Proprietary Funds Statement of Net Assets ................................................................................................................................................. Statement of Revenues, Expenses and Changes in Fund Net Assets ............................................................................. Statement of Cash Flows ............................................................................................................................................... Fiduciary Funds Statement of Fiduciary Net Assets ................................................................................................................................ Statement of Changes in Fiduciary Net Assets .............................................................................................................. Notes to Basic Financial Statements ........................................................................................................................................ COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Transportation Impact Fee ... Nonmajor Governmental Funds Combining Balance Sheet .............................................................................................................................................. Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................... Nonmajor Special Revenue Funds Combining Balance Sheet .............................................................................................................................................. Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................... Nonmajor Debt Service Funds Combining Balance Sheet .............................................................................................................................................. Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................... Nonmajor Capital Projects Funds Combining Balance Sheet .............................................................................................................................................. Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................... Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds General Operating Reserve ...................................................................................................................................... Transit System ........................................................................................................................................................ Investigation and Seizure ........................................................................................................................................ State Revenue Sharing ............................................................................................................................................ Housing Rehabilitation ........................................................................................................................................... Federal Programs .................................................................................................................................................... Cable Franchise Management ................................................................................................................................. City Gas Tax ........................................................................................................................................................... Building .................................................................................................................................................................. Library Endowment ................................................................................................................................................ Museum Endowment .............................................................................................................................................. Page A,B a-f 3 4 8 9 10 11 12 13 - 34 35 36 37 38, 39 40, 41 42 43 44, 45 46, 47 48 49 50 51 52 53 54 55 56 57 58 BOLDT, CARLISLE & SMITH LLC CERTIFIED PUBLIC ACCOUNTANTS PARTNERSHIP · ASSURANCE · INNOVATION INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of The City Council CITY OF WOODBURN Woodbum, Oregon We have audited the accompanying financial statements o£the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of CITY OF WOODBURN as of and for the year ended June 30, 2004, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of CITY OF WOODBURN, as of June 30, 2004, and the respective changes in financial position and cash flows, where appliCable, thereof and the respective budgetary comparisons for the General and Street Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 17, 2004, on our consideration of CITY OF WOODBURN's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. A SALEM: 480 CHURCH STREET S.E. · SALEM, OR 97301 · PHONE: (503) 585-7751 · FAX: (503) 370-3781 STA~ON: 408 NORTH THIRD AVENUE · STAYTON, OR 97383 · PHONE: (503) 769-2186 · FAX: (503) 769-4312 ALBANY: 1205 9TM AVENUE S.E. · ALBANY, OR 97322 · PHONE: (541) 928-6500 · FAX: (541) 928-6501 Combining and Individual Fund Financial Statements and Schedules. Readers desiring additional information about other major funds not presented in the Basic Financial Statements and on all non-major funds can find it in this section of the report. Included within this section are: Combining Financial Statements of other governmental funds which are classified as non-major. These statements include balance sheets and statements of revenues, expenditures and changes in fund balances. · Budgetary Comparisons. Budgetary information for all funds, except the General and Street Funds (which are presented within the Basic Financial Statements) are presented here. · Capital assets and other financial schedules complete the financial section of the report. Audit comments and disclosures required by state regulations. These are supplemental communications on the city's compliance and internal controls as required by Oregon statutes. Grant compliance - Single Audit. Additional reports by the city's independent auditor and the schedule of expenditures of federal awards as required by Government Auditing Standards and the Single Audit Act. FINANCIAL SUMMARY AND ANALYSIS As mentioned earlier, the City's net assets as of June 30, 2004 were $80,430,907. By far the largest portion of net assets is comprised of the City's investment in capital assets (e.g., land, buildings, equipment and public infrastructure), less any related debt outstanding that was used to acquire those assets. The City uses capital assets to provide services to citizens; therefore these assets are not available for future spending. The resources to repay the related debt is not provided by capital assets, but will be provided from other sources. Woodburn's Net Assets (expressed in thousands) Governmental B usiness-type Totals Activities (1,000's) Activites ( 1,000's) (1,000's) 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 Assets Current and other assets $ 15,107 $ 16,404 $ 10,011 $ 9,038 $ 25,118 $ 25,442 Capital assets 37,462 37,176 60,558 51,360 98,020 88,536 Total assets 52,569 53,580 70,569 60,398 123,138 113,978 Liabilities Other liabilities 562 470 2,229 751 2,791 1,221 Long-term liabilities 1,444 1,590 38,472 29,891 39,916 31,481 Total liabilities 2,006. 2,060 40,701 30,642 42,707 32,702 Net assets Invested in capital assets, net of related debt 36,314 35,790 22,142 21,523 58,456 57,313 Restricted 7,509 11,741 3,927 5,523 11,436 17,264 Unrestricted 6,740 3,989 3,799 2,710 10,539 6,699 Total netassets $ 50,563 $ 51,520 $ 29,868 $ 29,756 $ 80,431 $ 81,276 The major capital asset associated with governmental activities is streets, including right of way, storm sewers, and sidewalks. In the business-type activities, the major capital assets are sewer piping and plant (completed in 2001-02) and water piping and plant (currently under construction and scheduled for completion in the summer of 2005). Liquid assets, consisting of cash and investments, total $22,292,906. Long-term obligations are detailed in Note 8 to the basic financial statements. b MANAGEMENT'S DISCUSSION AND ANALYSIS Net assets of the governmental activities decreased by $957,948, which represents a 1.9 percent change. Net assets of the business-type activities increased by $112,399. Key elements of these changes, expressed in thousands, are as follows: Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contrib. General revenues: Property taxes Other taxes Other grants and contributions Other Woodburn's Net Assets (expressed in thousands) Governmental Business-type Activities Activities Totals 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 997 $ 1,945 $ 5,818 $ 5,972 $ 6,815 $ 7,917 51 70 51 70 1,617 808 1,093 2,710 808 5,797 5,242 5,797 5,242 1,288 1,578 1,288 1,578 1,517 1,339 1,517 1,339 987 1,000 103 150 1,090 1,150 Total revenues 12,254 11,982 7,014 6,122 19,268 18,104 Expenses General government 3,081 2,606 3,081 2,606 Public safety 3,223 3,315 3,223 3,315 Highways and streets 4,916 1,679 - 4,916 1,679 Culture and recreation 1,975 2,010 - 1,975 2,010 Interest on long-term debt 102 82 - 102 82 Water - 1,542 2,271 1,542 2,271 Sewer 5,274 5,072 5,274 5,072 Total expenses 13,297 9,692 6,816 7,343 20,113 17,035 Increase (decrease) in net assets before transfers (1,043) 2,290 198 (1,221) (845) 1,069 Transfers 86 92 (86) (92) - Increase (decrease) in net assets Net assets - beginning (957) 2,382 112 (1,313) (845) 1,069 51,520 49,138 29,756 31,069 81,276 80,207 Net assets-ending $ 50,563 $ 51,520 $ 29,867 $ 29,756 $ 80,431 $ 81,276 Governmental Activities The decrease in net assets is attributable to a $2,500,000 payment to the ~tate of Oregon for constmetlon of freeway on/off ramps, offset by System Development Charges (Transportation Impact Fees and Storm Water SDC's) that were collected but not expended in 2003-04. These SDC's are available for construction of street and storm sewer projects in future years. Business-type Activities The increase in the net assets of the Business-type activities is due to unfunded depreciation expense offset by an accumulation of Charges for Services, which will be used to fund completion of the Water Treatment Plant. d MANAGEMENT'S DISCUSSION AND ANALYSIS This discussion and analysis presents the highlights of financial activities and financial position for the City of Woodburn. The analysis focuses on significant financial issues, major financial activities and resulting changes in financial position, budget changes and variances from the budget, and specific issues related to funds and the economic factors affecting the City. Management's Discussion and Analysis (MD&A) focuses on current year activities and resulting changes. Please read it in conjunction with the City's financial statements. FINANCIAL HIGHLIGHTS The City's assets exceeded its liabilities at June 30, 2004 by $80,430,907 (net assets). Of this amount $58,456,143 was invested in capital assets (net of related debt) and $11,435,614 was restricted for specific purposes, leaving unrestricted net assets of $10,539,150. Net assets include unrestricted net assets in the governmental activities of $6,740,365 and $3,798,785 in the business-type activities. The City's net assets decreased by $845,549 (or 1.0%), which is the result of a payment of $2,500,000 to the State of Oregon for the City's portion of freeway on/off ramp construction. Systems Development Charges (SDC's) are usually accumulated over several years and then spent on large capital projects. The City's governmental activities net assets decreased in the amount of $957,948. This decrease was due to the contribution of $2,500,000 noted above. Net assets of the City's business-type activities increased by of $112,399. OVERVIEW OF THE FINANCIAL STATEMENTS The City's annual financial report consists of several sections. Taken together they provide a comprehensive financial report of the City. The components of the report include the following: Management's Discussion and Analysis. This section of the report provides financial highlights, overview and economic factors affecting the City. Basic Financial Statements. Includes a Statement of Net Assets, a Statement of Activities, Fund Financial Statements and the Notes to the Basic Financial Statements. Statements of Net Assets and Activities focus on an entity-wide presentation using the accrual basis of accounting and provide both long-term and short-term information about the City's financial status. The Governmental activities include most of the city's basic services such as police, street maintenance and improvement, community planning and governance. The business-type activities include the operation of the city's water and sewer utilities. Fund financial statements focus separately on major governmental funds and proprietary funds. Governmental fund statements follow the more traditional presentation of financial statements. The City's major governmental funds are presented in their own column and the remaining funds are combined into a column titled "Other Governmental Funds." Budgetary comparison statements are presented for the General and Street Funds, which comprise the City's General and Major Special Revenue fund. Statements for the City's proprietary funds follow the governmental funds and include net assets, revenues, expenses and changes in fund net assets, and cash flows. The Notes to Basic Financial Statements provide additional disclosures required by governmental accounting standards and provide information to assist the reader in understanding the City's financial condition. a ECONOMIC FACTORS Oregon's economy continues to lag behind the recovery being experienced by the rest of the nation. Woodbum, however, has avoided some of the severest set backs experienced by the rest of the state. The City benefits from its location on 1-5 at highway 214. Transportation and warehouse companies value Woodburn's location for its access to good highways both north/south and east/west. The Company Stores, opened in 1999, draw large numbers of customers from those driving 1-5. New development affects property tax revenue directly. Growth experienced in 2003-04 (which shows up in the 2005 levy) is expected to level off in 2005. Utility revenue (and franchise fees) is expected to be stable in 2005. Regional unemployment, which has been amongst the highest in the nation, is forecast to decline slightly. ~NANCIALCONTACT The City's financial statements are designed to present users (citizens, taxpayers, customers, investors, and creditors) with a general overview of the City's finances and to demonstrate the City's accountability. If you have questions about the report or need additional financial information, please contact the City Finance Director at 270 Montgomery, Woodburn, Oregon. Revenue in the governmental activities comes primarily from property taxes, charges for services and various grants and contributions. During the year ended June 30, 2004 the city received a significant amount of capital grants and contributions. These will not be continuing sources of revenue, but are funding specific projects. The city's governmental expenses cover a wide variety of services, with general government, public safety and highways and streets accounting for most of these expenses. City of Woodburn Governmental Activities Revenue Op Grants Other Taxe~ 3% 10% Property Taxes 48% Other 10% Capital Grants 1% Charges for Services 18% City of Woodburn Governmental Activities Functional Expenses General Interest Culture and recreation 2% 18% 14% Public safety 24% Highways and streets 42% Property taxes are the city's primary on-going source of revenue. Property taxes comprising 48% of the city's governmental revenue, is derived from the permanent tax rate and taxes levied for the repayment of bonded indebtedness. Other taxes are composed largely of franchise fees, amounts charged to utilities for use of the right of way. Charges for services are fees charged for building permits, land use applications and transportation impact fees. Expenses for Public Safety include the Police and the Municipal Court. Culture and Recreation includes the library, swimming pool, recreational programs, and the museum. General Government includes Finance, the City Attorney, and Administration. c FINANCIAL ANALYSIS OF FUNDS As of June 30, 2004 the City's governmental funds reported a combined fund balance of $12,704,494, which is a decrease of $1,294,350 from June 30, 2003. The general fund is the primary operating fund of the City. As of June 30, 2004, the general fund balance is $1,289,832, which is an increase of $263,155 from June 30, 2003. This increase is the result of increasing revenue without a corresponding increase in costs. The combined fund balance decrease is a result of a payment of $2,500,000 to the State of Oregon for the City's portion of freeway on/off ramps construction costs offset by revenue (primarily Systems Development Charges) in excess of expenditures. Systems Development Charges (SDC's) are usually accumulated over several years and then spent on large, cosily projects. Proprietary funds provide the same type of information as presented in the government-wide statements of net assets and activities, but in more detail. The proprietary funds net assets amounted to $29,859,337 as of June 30, 2004. This is an increase of $122,949 from June 30, 2003. BUDGETARY HIGHLIGHTS The changes between the original and final budget of the General Fund were relatively minor with an increase in total appropriations of $111,000. Actual beginning fund balance was $74,500 greater than budgeted. Property taxes were increased by $106,000; franchise fees were decreased by $25,000, and fines were decreased by $28,000. CAPITAL ASSETS AND DEBT ADMINISTRATION As of June 30, 2004, the City had invested $130,964,358 in capital assets of its governmental and business- type activities. This investment includes land and land improvements, buildings, equipment and public infrastructure of roads and bridges. The investment in governmental activities capital assets increased by $285,815, and business-type activities increased by $9,197,944. The significant addition during the year ended June 30, 2004 was the water purification plant and attendant storage facilities ($10,455,416). Additional information on the City's capital assets may be found in note 6 to the basic financial statements. The City did not issue any governmental activities long-term debt during the year ended June 30, 2004 and the total governmental long-term debt outstanding as of June 30, 2004 was $1,444,167. The City issued business-type activities long-term debt during the year ended June 30, 2004 in the amount of $9,748,291 under a loan program of the State of Oregon Safe Drinking Water Revolving Loan Fund in the amount of $1,348,291 and a water general obligation bond in the amount of $8,400,000. This debt provides a portion of the funding for improvements to the water system utility. The total business-type long-term debt outstanding as of June 30, 2004 was $38,471,883. During the year, the City retired a total of $1,665,639 in principal on long-term debt. A summary of the City's long-term debt outstanding is as follows: General obligation bonds $ 9,120,000 Loans 30,434,716 Capital lease 8,986 Compensated absences 352,348 Total $ 39,916,050 Functions/Programs Governmental activities General government Public safety Highways and streets Culture and recreation Interest on long-term debt TOTAL GOVERNMENTAL ACTIVITIES Expenses CITY OF WOODBURN STATEMENT OF ACTIVITIES Year Ended June 30, 2004 Pro~ram Revenues Charges Operating Capital for Grants and Grants and Services Contributions Contributions Net (Expense) Revenue and Changes in Net Assets Business- Governmental type Activities Activities 3,080,568 $ 787,684 $ -- $ 70,162$ (2,222,722) 3,223,000 ...... (3,223,000) 4,916,005 24,701 -- 1,324,076 (3,567,228) 1,975,406 184,619 50,670 223,227 (1,516,890) 101,920 ...... (101,920) 13,296,899 997,004 50,670 1,617,465 (10,631,760) Totals $ (2,222,722) (3,223,000) (3,567,228) (1,516,890) (101,920) (10,631,760) Business-type activities Water Sewer 1,542,192 2,339,416 -- 421,505 5,273,671 3,479,143 -- 671,320 $ 1,218,729 1,218,729 (1,123,208) (1,123,208) TOTAL BUSINESS-TYPE ACTIVITIES Totals 6,815,863 5,818,559 -- 1,092,825 $ 20~112~762 $ 6,815~563 $ 501670 $ 2,710~290 General revenues Taxes: Property taxes levied for: General purposes Debt service Franchise taxes Transient room taxes Other grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous (Loss) on sale of capital assets Transfers TOTAL GENERAL REVENUES AND TRANSFERS CHANGE IN NET ASSETS NET ASSETS - BEGINNING NET ASSETS - ENDING (10,631,760) 5,316,754 479,873 1,059,751 227,828 1,516,782 229,393 782,735 (25,206) 85,902 9,673,812 (957,948) 51,520,575 $ 50,562~627 $ 95,521 95,521 94,175 104,711 (96,106) (85,902) 16,878 112,399 29,755,881 29~868,280 $ 95,521 (10,536,239) 5,316,754 479,873 1,059,751 227,828 1,516,782 323,568 887,446 (121,312) 9,690,690 (845,549) 81,276,456 80~430,907 See notes to basic financial statements 2 BASIC FINANCIAL STATEMENTS CITY OF WOODBURN STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES REVENUES Property taxes System development charges Franchise fees Permits and fees Fines and forfeitures Intergovernmental Interest Other TOTAL REVENUES GOVERNMENTAL FUNDS Year Ended June 30, 2004 Other Transportation Governmental General Street Impact Fee Funds Total Governmental Funds $ 5,250,083 $ $ $ 586,752 1,151,137 332,898 1,044,155 266,124 146,748 8,494 281,263 282,347 - 408,943 958,747 519,666 23,585 4,553 71,466 121,019 328,752 1,383 - 533,265 5,836,835 1,484,035 1,310,279 436,505 282,347 1,887,356 220,623 863,400 7,484,613 973,177 1,222,603 2,640,987 12,321,380 EXPENDITURES Current General government Public safety Highways and streets Culture and recreation Capital outlay Debt service TOTAL EXPENDITURES 1,636,972 3,186,286 747,882 1,885,088 27,855 16,630 2,786,050 757,529 2,394,501 5,000 3,191,286 42,616 790,498 - 1,885,088 2,193,954 5,024,489 279,215 279,215 6,736,201 764,512 2,786,050 3,278,314 13,565,077 Excess (deficiency) of revenues over expenditures 748,412 208,665 (1,563,447) (637,327) (1,243,697) OTHER FINANCING SOURCES (USES) Transfers in Transfers out 300,000 819,424 1,119,424 (485,257) (215,940) (370,000) (98,880) (1,170,077) TOTAL OTHER FINANCING SOURCES (USES) (485,257) 84,060 (370,000) 720,544 (50,653), Net change in fund balances Fund balances at beginning of year 263,155 292,725 (1,933,447) 83,217 (1,294,350) 1,026,677 281,877 6,084,359 6,605,931 13,998,844 Fund balances at end of year $ 1,289,832 $ 574,602,,$ 4,150,912, $ 6,689,148 $ 12,704,494 See notes to basic financial statements 4 CITY OF WOODBURN STATEMENT OF NET ASSETS June 30, 2004 ASSETS Cash and investments Restricted cash and investments Receivables Prepaid expenses Internal balances Due from fiduciary funds Inventories Capital assets Land, improvements and construction in progres: Other capital assets, net of depreciation TOTAL ASSETS Governmental Business-type Activities Activities Totals $ 13,338,891 $ 8,954,015 $ 22,292,906 -- 563,766 563,766 1,747,369 307,772 2,055,141 201 -- 201 (8,943) 8,943 -- 20,181 -- 20,181 9,636 176,356 185,992 22,307,436 12,035,863 34,343,299 15,154,506 48,522,040 63,676,546 52,569,277 70,568,755 123,138,032 LIABILITIES Accounts payable and accrued expenses Accrued interest payable Deposits Long-term obligations: Due within one year Due in more than one year TOTAL LIABILITIES 544,168 1,565,544 2,109,712 16,315 584,891 601,206 2,000 78,157 80,157 463,956 1,580,504 2,044,460 980,211 36,891,379 37,871,590 2,006,650 40,700,475 42,707,125 NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital projects Debt service Other purposes Unreserved 36,313,437 22,142,706 58,456,143 6,213,330 3,926,789 10,140,119 407,155 -- 407,155 888,340 -- 888,340 6,740,365 3,798,785 10,539,150 TOTAL NET ASSETS $ 50,562,627 $ 29~868~280 $ 80 430 907 See notes to basic financial statements -- 1 CITY OF WOODBURN STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND Year Ended June 30, 2004 REVENUES Property taxes Franchise fees Permits and fees Fines and forfeitures Intergovernmental Interest Other Budgeted Amounts Original Final Actual Variance 5,268,000 $ 5,374,000 $ 5,250,083 $ (123,917) 1,093,000 1,076,000 1,044,155 (31,845) 73,000 73,000 146,748 73,748 328,000 300,000 282,347 (17,653) 369,000 368,900 408,943 40,043 66,000 37,500 23,585 (13,915) 341,000 345,100 328,752 (16,348) TOTAL REVENUES 7,538,000 7,574,500 7,484,613 (89,887) EXPENDITURES Council and mayor City administrator City recorder City attorney Finance City maintenance Non-departmental Police Parks maintenance Leisure services Swimming pool Parks administration Planning Library Contingencies 28,721 28,721 22,632 6,089 309,732 309,732 278,544 31,188 65,966 65,966 56,867 9,099 171,663 171,663 154,767 16,896 231,669 231,669 197,384 34,285 85,718 85,718 81,775 3,943 130,865 130,865 107,016 23,849 3,442,403 3,512,128 3,205,955 306,173 425,520 425,520 412,038 13,482 396,566 396,896 362,954 33,942 480,432 480,432 451,505 28,927 197,065 199,390 187,831 11,559 395,648 405,648 375,033 30,615 909,218 909,218 841,900 67,318 735,872 764,492 -- 764,492 TOTAL EXPENDITURES 8,007,058 8,118,058 6,736,201 1,381,857 Excess (deficiency) of revenues over expenditures (469,058) (543,558) 748,412 1,291,970 OTHER FINANCING SOURCES (USES) Transfers out (483,457) (483,457) (485,257) 1,800 Net change in fund balances Fund balance at beginning of year (952,515) (1,027,015) 263,155 1,290,170 952,515 1,027,015 1,026,677 (338). Fund balance at end of year --$ -- .$ 1~289~832 $ 1,289~832 See notes to basic financial statements CITY OF WOODBURN BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2004 ASSETS Cash and investments Receivables Prepaid expense Due from fiduciary funds Advances to other funds TOTAL ASSETS Transportation General Street Impact Fee Other Total Governmental Governmental Funds Funds $ 1,127,402 $ 504,510 $ 4,138,174 $ 7,052,574 $ 12,822,660 502,753 90,242 12,738 1,139,337 1,745,070 201 ...... 201 20,181 ...... 20,181 ...... 85,000 85,000 4,150,912 $ 8,276,911 14 673 112 LIABILTIES Accounts payable and accrued items Advances from other funds Deferred revenue Matured coupons payable TOTAL LIABILITIES FUND BALANCES Reserved for debt service Unreserved, reported in: General fund Special revenue funds Capital projects funds TOTAL FUND BALANCES 54,500 $ 20,150 $ -- $ 434,347 $ 508,997 ...... 85,000 85,000 306,205 .... 1,067,483 1,373,688 ...... 933 933 360,705 20,150 -- 1,587,763 1,968,618 TOTAL LIABILITIES AND FUND BALANCES Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds, net of accumulated depreciation of $16,706,612 Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds: Property taxes earned but not available Assessments earned but not available Housing rehabilitation loans earned but not available Internal service funds are used by managment to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets Long-term obligations, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds 389,300 389,300 1,289,832 ...... -- 574,602 -- 1,651,678 .... 4,150,912 4,648,170 1,289,832 574,602 4,t50,912 6,689,148 $ 1,650,537 $ 594,752 ~$ 8,276,91~1 $ 334,048 181,609 858,031 1,289,832 2,226,280 8,799,082 12,704,494 37,069,794 1,373,688 801,776 (1,387,125) See notes to basic financial statements 3 CITY OF WOODBURN STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2004 ASSETS Current assets Cash and investments Receivables Inventories Total current assets Business-twe Activities - Enterprise Funds Wastewater Water Wastewater Treatment Other Well Treatment Plant Enterpr/se Water Construction Plant Construction Funds 616,770 $ 2,216,591 $ 361,430 $ 2,645,073 $ 3,114,151 $ 114,867 -- 97,839 95,066 - 112,562 -- 63,794 .... 844,199 2,216,591 523,063 2,740,139 3,114,151 Noncurrent assets Restricted cash and investments Capital assets Land, improvements and construction in progress Other capital assets, net of depreciation Total noncurrent assets TOTAL ASSETS 563,766 .... 11,671,374 -- 364,489 6,030,826 -- 42,491.214 18,265,966. -- 42,855.703 19,110,165 2,216,59l 43,378,766 2,740,139 3,114,151. LIABILITIES. Current liabilities Accounts payable and accrued items Accrued interest payable Customer deposits Compensated absences payable Current portion of long-term obligations Total current liabilities 508,095 980,309 27,508 49,632 204,272 -- 380,619 -- 78,157 ...... 21,675 -- 35,011 -- 288,728 -- 1,235,090 -- 1,100,927 980,309 1,678,228 49,632 Long-term obligations 10,474,938 -- 26,416,441 TOTAL LIABILITIES l 1,575,865 980,309 28,094,669 49,632 Invested in capital assets, net of related debt 6,938,534 -- 15,204,172 .... Restricted for capital projects -- 1,236,282 -- 2,690,507 Unrestricted 595,766. -- 79,925. -- 3,114,15l TOTAL NET ASSETS 1,236,282 $ 15,284,097 ~ 2,690,507 ~ 3~114,151 Internal balances result from transactions between the governmental activities, business-type activities and internal service funds NET ASSETS OF BUSiNESS-TYPE ACTIVITIES Governmental Activities lntemal Service Totals Funds 8,954,015 $ 516,23l 307,772 2,299 176,356 9.636 9,438,143 528,166 563,766 -- 12,035,863 -- 48,522.040 392348 61,121,66~ 392,148 70,559,812 920,314 -- 1,565,544 34,238 -- 584,89l -- -- 78,157 2,000 -- 56,686 73,357 -- 1,523,818 -- 3,809,096 109,595 36,891,379 -- 40,700,475 109,595 22,142,706 392,148 3.926,789 -- 3,789,842 418,571 29,859,337 $ 810,71~ 8,943 29,868~280 See notes to basic financial statements 8 CITY OF WOODBURN RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2004 NET CHANGE IN FUND BALANCE - TOTAL GOVERNMENTAL FUNDS Amounts reported for government wide statements in the Statement of Activities are different because of the following: Govermnental funds report capital outlays as expenditures while government wide statements report depreciation expense to allocate those expenditures over the life of the assets. The difference between these two amounts is: Capital outlay Depreciation The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) is to decrease net assets. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds as follows: Property taxes Assessments Loan repayments Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of long-term debt obligations principal is an expenditure in the governmental funds, but the repayment reduces long-term obligations in the government wide statements Some expenses reported in the government wide statements do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences Internal service funds are used by management to charge the costs of various functions to individual funds. The net revenue (expense) of the internal service fund is allocated between governmental and business- type activities. CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 931,008 (578,971) (49,726) 51,681 (51,450) (1,294,350) 352,037 (79,575) (49,495) 177,295 08,095) (45,765) (957,948) See notes to basic financial statements 5 CITY OF WOODBURN STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to suppliers Payments to employees Other Net cash provided by (used in) operating activities CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Cash transfers in Cash transfers out Net cash (used in) non-capitsl financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from long-term obligations Capital conu'ibutious Acquisition of capital assets Principal paid on long-term obligations [merest paid on lung-tem~ obligations Net cash (used-in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest Net increase (decrease) in cash and cash equivalents Cash nod cash equivalents--beginning of year Cash and cash equivalents--end of year Business-type Activities - Enterprise Funds Governmental Wastewater Activities Wastewater Treatment Other Internal Water Well Treatment Plant Enterprise Service Water Construction Plant Construction Fm~ds Totals Funds $ 1,811,906 $ $ 1,701,133 $ 1,854,639 $ $ 5,367,678 $ 353,985 136,701 (758,522) (55,603) (677,424) (802,308) (597,885) (870,324) (47,991) (1,516,200) (707,964) 56,304 23,867 69 69,858 16,137 166,235 384,554 1 ~407,026 23,867 72,356 1,820,903 16,137 3,340,289 (771,733) 65,000 550,000 615,000 738,000 (854,900) (434,707) (1,289,607) (12,740) (789,900) 550,000 (434,707) (674,607) 725,260 (44,161) 9,748,291 9,748,291 1,092,825 1,092,825 (10,429,542) (131,700) (10,605,403) (1,148,820) (21,570) (1,170,390) (1,232,601) (26,290) (1,258,891) (1,656) (44,161) (681,251) (2,513,121) 1,044,965 (2,193,568) (1,656) 5,508 17,425 7,163 31,917 32,162 94,175 6,370 578,473 (89,959) (355,188) (660,301) 1,093,264 566,289 (41,759) 38,297 2,306,550 716,618 3,305,374 2,020,887 8,387,726 557,990 $ 616,770 $ 2,216,591 $ 361,430 $ 2,645,073 $ 3,114,151 $ 8,954,015 $ 516,231 Reconciliatiou of operating income (loss) to net cash provided by (used in) operating activites Operating income (loss) $ 1,229,901 $ $ (2,025.432) $ 1,698,476 $ $ 902,945 $ (I,193,360) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating acfivites Depreciation 108,392 2,029,522 2,137,914 9.164 Other 56,304 23,867 69 69,858 16,137 166.235 384,554 (Increase) dec,'ease in assets Receivables (13,139) 60,224 2,937 50,022 1,336 Inventories (3,266) (466) (3,732) (1,576) Restricted cash and investments (491,883) 28,222 (463,661) Increase (decrease) in liabilities Accounts payable and accrued itenxs 495,350 6,444 21,410 523,204 16,683 Customer deposits 24,282 24,282 Compensated absences payable 1.085 1,995 3,080 11,466 Net cash provided by (used in) operating activities $ 1,407.026 $ 23,867 $ 72,356 $ 1,820,903 $ 16,137 $ 3,340,289 $ (771,733) Supplemental Disclosure Noncash noncapital financing activities During the year, the city's sewer enterprise fund received a noncash transfer of capital assets from governmental activities in the amount of $29,352. See notes to basic financial statements 10 CITY OF WOODBURN STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STREET - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Permits and fees Intergovernmental Interest Other TOTAL REVENUES Budgeted Amounts Original Final Actual Variance 1,000 $ 1,000 $ 8,494 $ 7,494 800,000 884,833 958,747 73,914 6,000 6,000 4,553 (1,447) 500 500 1,383 883 807,500 892,333 973,177 80,844 EXPENDITURES Street maintenance Street miscellaneous Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) Net change in fund balances Fund balance at beginning of year Fund balance at end of year 950,773 956,773 742,950 213,823 59,200 59,200 21,562 37,638 53,943 242,297 -- 242,297 1,063,916 1,258,270 764,512 493,758 (256,416) (365,937) 208,665 574,602 300,000 300,000 300,000 (215,940) (215,940) (215,940) 84,060 84,060 84,060 (172,356) (281,877) 292,725 574,602 172~356 281~877 281~877 -- $ -- $ -- $ 574~602 $ 574,602 See notes to basic financial statements 7 CITY OF WOODBURN STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS Year Ended June 30, 2004 ADDITIONS Earnings on investments DEDUCTIONS Benefit payments Change in net assets Net assets - beginning Net assets ~ ending Pension Trust Fund $ 42,492 42,116 376 819,950 $ 820,326 See notes to basic financial statements 12 CITY OF WOODBURN OPERATING REVENUES Charges for services Rents Total operating revenues OPERATING EXPENSES Personal services Material and services Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Interest Other (Loss) on disposal of capital assets interest Total nonoperating revenues (expenses) Income (loss) before oilier revenues and transfers OTHER REVENUES AND TRANSFERS Capital contributions Transfers in Transfers out Total other revenues and transfers STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS Year Ended June 30, 2004 Water Business-Wpe Activities ~ Entemdse Fun~ Wastewater Water Wastewater Treatment Other Well Treatment Plant Enterprise Conslruetion Plant ~ Funds 2,292,646 $ -- $ 1,640,909 $ 1,823,480 $ 2.292.646 -- 1.640.909 598,970 355,383 108.39~ -- 872,319 47,991 - 764,500 77,013 -- * 029.522 -- 1.062.745 __ -- 3.666,341 125.004 1.229,901 -- (2.025.432) 1.698.476 Totals 5,508 17,425 7,163 31,917 56,304 23,867 69 69,858 (96,105) -- (1) -- (204.272) -- 67,137 (1.232,601) (238,5651 41,292 74,368 991 336 41.292 (1.951,064) Governmental Activities lntemal Service Funds -- $ 5,757,035 $ 72,719 .... 279.930 5,757,037 352.649 1,519,280 719,430 1,196,896 817,415 2.137,914 9.164 4,854,090 1.546.009 902,945 (1.193,360) 32,162 94,175 16,137 166,235 -- (96,106) (26.290/ fl.396.026) (1.130.826) 22.009 567,650 22.009 ........ 1,092,825 1,542,348 550,000 1,332,554 .... (854.900/ (1.474.304/ (434.707) (1.280.520) (21,570) 687,448 (924.304~ 897,847 (1.280.520) 1.071.255 (883,012) (1,053,217) (712,870) 1,093,264 2.119.294 16.337.314 3.403.377 2.020.887 Change in net assets 1,678,784 Net assets - beginning of year 5,855,516 Net assets - end of year $ 7.534.300 ~~$ 2.690,507 Some amounts reported for business-type activities in the statement of activities are different because: A portion of the net revenue (expense) of internal service funds is allocable to business-type activities CHANGE IN NET ASSETS OF BUSINESS-TYPE ACTIVITIES 6,370 384,554 (1.231.7~) 390 9*4 (328,777) (802.436/ 1,092,825 -- 3,424,902 758,861 (4.066.001) (12.740/ 451,7~6 746.121 122,949 (56,315) 867.034 810,719 ¢IO.55o) 112.399 See notes to basic financial statements 9 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. Summary of significant accounting policies (continued) C. Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. When both restricted and unrestricted net assets are available, restricted resources are used only after the unrestricted resources are depleted. The government-wide statements and proprietary funds have applied all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principal Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict Governmental Accounting Standards Board (GASB) pronouncements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property tax revenues are recognized in the fiscal year for which they were levied, provided they are due and collectable within 60 days after the end of the accounting period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 14 CITY OF WOODBURN STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS June 30, 2004 ASSETS Cash and investments Restricted cash and investments TOTAL ASSETS LIABILITIES Due to General Fund Trust deposits TOTAL LIABILITIES NET ASSETS Held in trust for pension benefits Pension Trust Agency Fund Fund -- $ 141,493 820,326 -- 820,326 $ 141 493 -- $ 20,181 -- 121,312 -- $ 141 493 $ 820~326 See notes to basic financial statements 11 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Summary of significant accounting policies (continued) C. Measurement focus, basis of accounting and financial statement presentation (continued) Additionally, the City reports the following fund types: · Special Revenue are primarily operating funds that account for revenue derived from specific taxes or other revenue sources, which are legally restricted to finance particular functions or activities. When a special revenue fund is not an operating fund, transfers are made from the special revenue fund to the operating funds authorized to make expenditures. Debt Service account for the resources accumulated and payments made for principal and interest on long-term debt of governmental funds. Capital Projects account for expenditures on major construction projects or equipment acquisition. The principal sources of revenues are proceeds from certificates of participation issued to finance capital acquisitions, proceeds from the sale of City owned property, general obligation bond proceeds, full faith and credit bonds, and revenue bonds. Enterprise account for services rendered to the public on a user charge basis and are predominately self-supporting Internal Services account for services provided to other departments or agencies within the City on a cost reimbursement basis. · Pension Trust accounts for funds held to provide retirement benefits to City employees. · Agency accounts for amounts held by the City on behalf of others in a fiduciary capacity. Do Budget policies and budgetary control Generally, Oregon Local Budget Law requires annual budgets be adopted for all funds except agency funds. The modified accrual basis of accounting is used for all budgets. All annual appropriations lapse at fiscal year end. The City begins its budgeting process by appointing Budget Committee members in the fall of each year. Budget recommendations are developed by management through early spring, with the Budget Committee meeting and approving the budget document in late spring. Public notices of the budget hearing are generally published in May or June and the hearing is held in June. The City Council adopts the budget, makes appropriations, and declares the tax levy no later than June 30. Expenditure appropriations may not be legally over-expended, except in the case of grant receipts and bond sale proceeds which could not be reasonably estimated at the time the budget was adopted. 16 CITY OF WOODBURN NOTES TO BASIC FINANCIAL STATEMENTS Year Ended June 30, 2004 Summary of significant accounting policies A. Organization (reporting entity) Control of the City is vested in its mayor and council members who are elected to office by voters within the City. Administrative functions are delegated to individuals who report to and are responsible to the mayor and council. The chief administrative officer is the City Administrator. The accompanying basic financial statements present all funds, account groups, and component units for which the City is considered to be financially accountable. The criteria used in making this determination includes appointment of a voting majority, imposition of will, financial benefit or burden on the primary government, and fiscal dependency on the primary government. The city council serves as the governing board of the WOODBURN URBAN RENEWAL AGENCY. Therefore, the accounts of the agency are included in the financial statements of the City. Complete financial statements for the WOODBURN URBAN RENEWAL AGENCY may be obtained from the City's finance department. B. Government-wide and fund financial statements Government-wide Financial Statements The statement of net assets and statement of activities display information about the primary government (the City). These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities are supported by taxes and intergovernmental revenues. The statement of activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the City's funds. Separate statements for each fund category--governmental, proprietary andfiduciary--are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. Ail remaining governmental funds are separately aggregated and reported as nonmajor funds. 13 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. Summary of significant accounting policies (continued) I. Inventories Inventories purchased are stated at cost (first-in, first-out method). Inventories are recorded as expenditures when purchased or donated. Inventories are offset by a fund balance reserve, as they do not constitute available expendable resources. Jo Receivables Property taxes in the governmental fund types, which have been collected within sixty days following year-end, are considered measurable and available and are recognized as revenues. Property taxes receivable in the agency funds are offset by amounts held in trust and, accordingly, have not been recorded as revenue. All other property taxes receivable are offset by deferred revenues and accordingly, have not been recognized as revenue. Real and personal property are assessed and property taxes bec. ome a lien against the property as of July 1 each year. Property taxes are payable in three installments, following the lien dam, on November 15, February 15, and May 15. Taxes unpaid and outstanding on May 16 are considered delinquent. All property taxes receivable are due from owners of property within the City. Receivables for sram shared revenue are recorded as revenue in all fund types as earned. User charges receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to user charges receivable. Changes in the valuation allowance have not been material to the financial statements. K. Capital assets Capital assets (including infrastructure) are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed fixed assets are valued at their estimated fair value on the date contributed. Capital assets include public domain (infrastructure) capital assets consisting of certain improvements including roads, bridges, lighting system, drainage systems, and flood control. The City defines capital assets as assets with an initial, individual cost of more than $1,000 and an estimated useful life in excess of one year. In the government-wide statements, capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives. The estimated useful lives are as follows: Infrastructure Buildings and improvements Equipment Water and sewer lines 20 to 50 years 35 to 50 years 3 to 20 years 20 to 50 years 18 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. Summary of significant accounting policies (continued) C. Measurement focus, basis of accounting and financial statement presentation (continued) The City reports the following major governmental funds: · General is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as general government, public safety, library operations, and parks and recreations. · Street accounts for the operation of the City Road Department. Expenditures are primarily for repair, maintenance and construction of city streets. · Transportation Impact Fee accounts for system development for traffic controls and street construction. The City reports the following major proprietary funds: · Water accounts for water services for residents of the City. The principal revenue source is from user fees. The primary expenditure is for system operations · Water Well Construction accounts for the construction of water wells. The principal revenue source is transfers from the Water Fund. Wastewater Treatment Plant accounts for the treatment of wastewater generated in the City. The primary revenue source is from user fees. · Wastewater Treatment Plant Construction accounts for the construction of the plant. The primary source of revenue comes from proceeds from long-term obligations. 15 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 2. Deposits and investments At June 30, 2004, the carrying amount of the City's deposits was $912,24t and the bank balance was $1,407,696. Of the bank balance, $100,000 was covered by federal depository insurance, $326,924 was collateralized with securities held by the pledging financial institution in the City's name, and $980,772 was not collateralized. Balances so collateralized meet the requirements of state law, but are considered uncollateralized per GASB No. 3. Statutes authorize the City to invest in obligations of the U. S. Treasury and U. S. agencies, banker's acceptances, repurchase agreements, commercial paper rated A- 1 by Standard & Poor's Corporation or P- 1 by Moody's Commercial Paper Record, and the state treasurer's investment pool. The City's investments are presented in three categories of credit risk as follows: 1. Insured or registered, or securities held by government or its agent in the government's name. 2. Uninsured and unregistered, with securities held by the counter-party's umst department or agent in the government's name. 3. Uninsured and unregistered, with securities held by the counter-party, or by its trust department or agent but not in the government's name. Investments in the employee pension trust and investments in the State Treasurer's pool do not require categorization. 20 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. Summary of significant accounting policies (continued) D. Budget policies and budgetary control (continued) The ordinance authorizing appropriations for each fund sets the level at which expenditures cannot legally exceed appropriations. The City established the levels of budgetary control at the personal services, materials and services, capital outlay, operating contingencies, debt service, and all other requirement levels for all funds, except the General, Transit System, Street, Parks/Recreation Capital Improvement, Water, Wastewater Treatment Plant, Wastewater Plant Construction and Technical and Environmental Services funds for which budgetary control is established at the department level. Budget amounts shown in the basic financial statements have been revised since the original budget amounts were adopted. The City Council must authorize all appropriation transfers and supplementary budgetary appropriations. E. Use of estimates The process of preparing financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts. Cash and cash equivalents For purposes of the accompanying statement of cash flows, the internal service funds consider all highly liquid investments with a maturity of three months or less when purchased, and their equity in the City Treasurer's investment pool, to be cash equivalents. G. Financial instruments Statement of Financial Accounting Standards No. 107 requires all entities to disclose the fair value of certain financial instruments in their financial statements. Accordingly, the management reports that the carrying amount of cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the short maturity of these instruments. The carrying amounts of long-term notes payable approximate fair value based on comparisons to the market rate of interest. Investments Investments are stated at cost, which approximates fair value. The City invests in the State Treasurer's Investment Pool, which has regulatory oversight by the Oregon Short Term Fund Board and whose investments are approved by the Oregon Investment Council. The fair value of the City's position in the pool is the same as the value of the pool shares. -- 17 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 3. Receivables A. The City's receivables at June 30, 2004, are shown below: Governmental funds/activities General Street Proprietary funds/business-type activities Govern- Other Wastewater mental Transport- Govern- Wastewater Treatment Activities ation mental Treatment Plant Internal Impact Fee Funds Water Plant Construction Service Totals Property taxes $ 377,738 $ $ $ 33,961 $ $ $ $ $ 411,699 Accounts 119,945 12,738 17,485 1,243 2,299 153,710 Intergovernmental 5,070 90,242 48,251 143,563 Assessments 181,609 181,609 User charges 113,624 97,839 95,066 306,529 Housing rehabilitation loans 858,031 858,031 $ 502,753 $ 90,242 $ 12,738 $ 1,139,337 $ 114,867 $ 97,839 $ 95,066 $ 2,299 $ 2,055,141 Bo Property taxes i. Collection procedures Taxes are levied on July 1 and are payable in three installments due November 15, February 15 and May 15. Marion County bills and collects property taxes for the City. ii. Transactions Current Prior Balances Net Balances July 1, 2003-04 Adjust- Interest June 30, 2003 Levy ments (Discounts) Collections 2004 $ -- $5,958,731 $ (13,421) $ (142,295) $ 5,568,441 $ 234,574 419,030 -- (67,183) 32.072 206,795 177,125 $ 419:030 $5,958,731 $ (80.604) $ (110.223) $ 5,775,236 $ 411,699 22 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. Summary of significant accounting policies (continued) L. Interfund transactions Interfund transactions are reflected as either loans, services provided, reimbursements or t~ansfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Services provided, deemed to be at market or near market rates, are treated as revenues an expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. M. Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Assets. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are deferred and amortized over the life of the bond. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. N. Compensated absences - sick leave The City has a policy which permits represented employees and sworn officers to earn sick leave at the rate of 8 hours per month and accumulate up to a maximum of 960 hours. All other full-time employees earn sick leave at the rate of 8 hours per month and may accumulate an unlimited amount of sick leave. All sick leave lapses upon termination of employment. -- 19 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 6. Capital Assets Capital asset activity for the year ended June 30, 2004 is as follows: Balances July 1, 2003 Governmental Activities Capital assets, not being depreciated Land $ Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated Buildings Equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings Equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net $ Additions Deletions Balances Transfers June 20, 2004 21,638,478 $ 1,001,118 479,940 22,639,596 479,940 (501) $ (811,599) (812,100) . $21,637,977 669,459 7,080,837 811,599 (3,807) 4,172,074 51,014 (71,926) (1,953) 19,591,902 401,71Q 30,844.813 1,264,323 (75,733) (1,953) 22,307,436 7,888,629 4,149,209 19,993,612 32,107,183 2,269,990 106,366 2,723,842 147,551 11,314,450 334,218 16,308,282 588,135 14,536,531 676,188 37,176,127 $1,156,128 47,801 2,424,157 (51,028) (183,575) 2,636,790 167,329 11,815,997 (51,028) 31,555 16,927,972 (24,705) (33,508) 15,154,506 (836,805) $ (33,508) $37,461,942 Business-type Activities Capital assets, not being depreciated Land $ Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated Water and sewer lines Buildings Equipment Total capital assets, being depreciated Less accumulated depreciation for: Water and sewer lines Buildings Equipment Total accumulated depreciation Total capital assets, being depreciated, net Business-type activities capital assets, net $ 840,142 $ $ (106) $ 789,099 10,406,728 - 1,629,241 10,406,728 (106) $ 840,036 11,195,827 12,035,863 17,347,692 84,765 45,116,203 680,000 (100,000) 1,056,300 226,963 (2,444) 63,520,195 991,728 (102,444) 17,432,457 45,696,203 1,953 1.282,772 1,953 64,513,876 3,744,634 625,261 - 20,000 9,472,g96 1,474,809 (4.000) 571,947 37,844 (2,444) (51,555) 13,789,477 2,137,914 (6,444) (31,555) 49,730,718 (1,146,186) (96,000) 33,508 51,359,959 $9,260,542 $ (96,106) $ 33,508 4,389,895 10,943,705 555,792 15,895,836 48,522,040 $60,557,903 24 ~ NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 2. Deposits and investments (continued) A. The City's deposits and investments at June 30, 2004, are shown below: Employee's Pension Trust State Treasurer's Investment Pool Total investments Cash and investments are comprised of the following at June 30, 2004: Cash on hand Deposits with banks Investments Cash and cash investments are reported as follows: Gover~zmental funds/activities General Street Transportation Impact Fee Other Governmental Funds Total governmental funds/activities Internal service funds included in governmental activities Total governmental activities Proprietary funds/business-type activities Unrestricted Water Water System Construction Wastewater Wastewater Treatment Plant Construction Other Proprietary Funds Total unrestricted Restricted Water Total proprietary funds/business-type activities Fiduciary Funds Pension Trust Agency Total fiduciary funds Total cash and investments Carrying Amount 820,326 22,083,939 22.904.265 Fair Value 820,326 22,083,939 22,904.265 1,985 912,241 22,904,265 23~818.491 1,127,402 504,510 4,138,174 7,052,574 12,822,660 516,231 13,338,891 616,770 2,216,591 361,430 2,645,073 3,114,151 8,954,015 563,766 9,517,781 820,326 141,493 961,819 $ 23.818.491 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 8. Long-term obligations A. Transactions for the governmental activities for the year ended June 30, 2004 were as follows: Balances Balances Balances Due within July 1, 2003 Additions Reductions June 30, 2004 One year General Obligation Bonds 1994 General obligation bonds - Original issue $1,755,000, 15 years; interest at various rates Principal Interest $ 845,000 $ $ 125,000 $ 720,000 3,818 45,270 45,822 3,266 $ 130,000 Loans Oregon Economic Development Department - due in various annual installments of $38,319 to 37,495; interest at 5.01 percent Principal Interest 848,818 45,270 170,822 723,266 130,000 Oregon Economic Development Department - due in annual installments of $47,043; interest at 6.5 percent. Balance is allocated between governmental and business-type activities Principal Interest 372,010 17,937 354,073 18,066 10,872 17,310 18,148 10,034 - 382,882 17,310 36,085 364,107 18,066 Capital lease Government Leasing Company ~ 3 years, annual installments of $8,986 Principal Compensated absences Accumulated unpaid vacation Total general long-term obligations Interest 89,065 23,619 65,446 11,242 3,378 4,303 4,666 3,015 92,443 4,303 28,285 68,461 11,242 Principal 17,972 8,986 8,986 266,101 295,662 266,101 295,662 1,608,216 362,545 510,279 1,460,482 18,068 66,883 68,636 16,315 $ 1,590,148 $ 295,662 $ 441,643 $ 1,444,167 8,986 295,662 $ 463,956 26 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 3. Receivables (continued) B. Property taxes (continued) iii. Ensuing year's levies The permanent tax rate is $6.0534 per $1,000 assessed value as limited by the Constitution of the State of Oregon. The tax rate limit of $10.00 per thousand of assessed value imposed by the Oregon Constitution is not expected to affect this levy. In addition, the City will levy $155,820 for the retirement of long-term debt principal and interest due in 2004-05. o Due from/to other funds Amounts due from and to other funds consists of the following: Fund due to Fund due from General Fiduciary funds Amount $ 20,181 Advances to/from other funds Advances to and advances from other funds, representing long-term interfund loans consist of the following: Advances from Other Governmental Fund Street/Storm Drain Capital Improvement Advances to Other Governmental Fund Special Assessment $ 85.__000 23 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 0 Long-term obligations (continued) B. (continued) Safe Drinking Water Revolving Loan Fund - due in annual installments starting in December 2004; interest at 4.21 percent starting July 2004 Principal Interest General Obligation Bonds 2003 Water general obligation bonds - Original issue $8,400,000, 25 years; interest at various rates Principal Interest Compensated absences Accumulated unpaid vacation Total business-type activities Interest Balances Balances Balances Due within July 1, 2003 Additions Reductions June 30, 2004 One year $ 1,015,375 $ 1,348,291 $ $ 2,363,666 $ 77,662 1,015,375 1,348,291 2,363,666 77,662 53,606 8,400,000 - 8,400,000 211,066 204,272 - 204,272 8,604,272 8,604,272 211,066 56,686 53,606 56,686 56,686 30,338,658 11,063,427 2,345,311 39,056,774 $1,580,504 447,756 1,258,450 1,121,315 584,891 Principal $ 29,890,902 $ 9,804,977 $1,223,996 $ 38,471,883 C. The future maturities of obligations outstanding as of June 30, 2004, are as follows: Governmental Activities Fiscal Year Loans Accum- 1994 General Oregon Economic Development Department Capital ulated Obligation Bonds B97002 B91002 lease unpaid Principal Interest Principal Interest Principal Interest Principal vacation Totals Principal Interest 2005 $130,000 $ 39,197 $ 18,066 $ 17,358 $ 11,242 $ 3,802 2006 135,000 32,242 18,202 16,555 7,104 3,071 2007 145,000 24,952 18,346 15,735 7,051 2,610 2008 150,000 17,050 23,497 14,901 7,510 2,151 2009 160,000 8,800 23,660 13,809 7,998 1,663 2010-14 126,192 51,405 24,541 1,733 2015-19 126,110 16,443 $ 8,986 $ 295,662 $ 463,956 $ 60,357 160,306 51,868 170,397 43,297 181,007 34,102 191,658 24,272 150,733 53,138 126,110 16,443 $720,000 $122,241 $354,073 $146,206 $ 65,446 $15,030 $ 8,986 $ 295,662 $ 1,444,167 $283,477 28 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 6. Capital Assets (continued) Depreciation expense was charged to functions/programs as follows: Governmental activities General government Public safety Highways and sl~'eets Culture and recreation Total depreciation expense - governmental activities $ 20,812 8,593 496,268 62,462 588,135 Business-type activities Water $ 108,392 Wastewater 2,029,522 Total depreciation expense - business-type activities $ 2.137.914 o Deferred revenue Resources owned by the City, which are measurable but not available, and are deferred in the Governmental Funds, consist of the following: Other Governmental General Funds Totals Assessments $ -- $ 181,609 $ 181,609 Housing rehabilitation loans 858,031 858,031 Property taxes 306,205 27,843 334,048 Totals $ 306,205 $ 1,067_,483 $1.373.688 -- 25 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 10. Defined benefit pension plan - The Retirement Plan for Employees of City of Woodburn, Oregon A. Plan description The City sponsors a single-employer defined benefit pension plan that covers non-executive employees who have completed six months of employment with the City and executive employees, except the police chief, who elect coverage under this plan. It provides retirement and disability benefits, cost of living adjustments and death benefits to members and beneficiaries. It also provides for post-retirement healthcare benefits for retired general service employees age 62 and older in an amount not to exceed $60 per month. The City Council has the authority to amend the benefit provisions of the plan. On November 5, 1998, the City decided to integrate its retirement plan into the Oregon Public Employees Retirement System (PERS)pursuant to ORS 238.680. The City ceased contributions to its retirement plan in December 1998, except for one employee who continued under the plan until August 2000. In December 1998, the City transferred $6,738,120 to PERS under the integration agreement with PERS. The remaining assets of the retirement plan are to provide retirement benefits to employees who have already retired or elected to remain in the plan. Membership of the plan consisted of eight inactive members at July 1, 2003, the date of the latest actuarial valuation available as of the date of this report. B. Funding status and progress The pension benefit obligation (PBO), which is the actuarial present value of credited projected benefits, is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of the plan, to assess progress made in accumulating sufficient assets to pay benefits when due, and to make comparisons among employers. The latest actuarial valuation was performed as of July 1, 2003. Significant actuarial assumptions used to compute the PBO were as follows: Investment earnings: 5.5% (net of all plan expenses) Salary increases: none (effective July 1,200I) Cost-of-living increases: 2.0% 30 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 8. Long-term obligations (continued) B. Transactions for the business-type activities for the year ended June 30, 2004 were as follows: Loans Oregon Economic Development Department - due in annual installments of $47,043; interest at 6.5 percent. Balance is allocated between governmental and business- type activities Principal Interest Oregon Economic Development Department - due in annual installments of $29,102; interest at 6.32 percent Principal Interest Oregon Economic Development Department - due in annual installments with interest at 4.74 percent Principal Interest Balances July 1, 2003 $ 197,369 7,483 Balances Balances Due within Additions Reductions June 30, 2004 One year $ $ 4,806 $ 192,563 $ 19,031 13,149 13,952 6,680 204,852 13,149 18,758 199,243 19,031 195,212 16,764 178,448 17,824 7,196 11,661 12,337 6,520 202,408 11,661 29,101 184,968 17,824 435,424 18,630 416,794 23,784 12,039 19,808 20,471 11,376 447,463 19,808 39,101 428,170 23,784 Oregon Department of Environmental Quality - due in semi-annual installments of $147,792; interest at 3.93 percent Principal Interest 3,406,858 163,284 3,243,574 169,764 62,885 121,596 132,301 52,180 3,469,743 121,596 295,585 3,295,754 169,764 Oregon Department of Environmental Quality - due in semi-annual installments of $735,150; interest at 1.21 percent Principal Interest 24,587,058 - 966,906 23,620,152 1,004,6§7 358,153 887,964 942,254 303,863 24,945,211 887,964 1,909,160 23,924,015 1,004,687 27 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 11. Defined benefit pension plan - Oregon PERS (continued) C. Annual pension cost For 2003-04, the City's annual pension cost of $491,806 was equal to the City's required and actual contributions. The required contribution was determined by the integration agreement with PERS and using the entry age actuarial cost method. D. Three-year trend information Fiscal Year Ended June 30, 2004 2003 2002 Annual Pension Cost (APC) $ 491,806 $ 485.117 $ 446,399 Percentage of APC contributed 100% 100% 100% Net pension obligation -- $ --$ 12. Defined contribution pension plan The City sponsors a defined contribution pension plan administered by ICMA Retirement Corp. to provide retirement benefits for the City Administrator, City Attorney and Public Works Director. The plan provisions and contribution requirements are established and may be amended by the City Council. The City has established a contribution rate of 17.3 percent, 7 percent and 8 percent of covered salary for the three positions, respectively. The City contributed $34,804 to the plan for the year ended June 30, 2004. 32 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 8. Long-term obligations (continued) B. The future maturities of obligations outstanding as of June 30, 2004, are as follows: (continued) Business-type Activities Loans Fiscal Oregon Economic Development Department B 91002 B 91202 G98002 Oregon Department of Environmental Quality R98411 R98412 Year Principal Interest Principal Interest Principal Interest Principal Interest Principal 2005 $ 19,031 $ 12,969 $ 17,824 $ 11,278 $ 23,784 $ 19,679 $ 169,764 $ 125,821 $ 1,004,687 2006 25,136 11,732 18,950 10,151 23,945 18,670 176,501 119,083 1,043,944 2007 27,284 10,097 20,148 8,954 24,114 17,639 183,506 112,079 1,084,736 2008 29,058 8,324 21,421 7,680 24,293 16,592 190,789 104,796 1,127,121 2009 30,947 6,436 22,775 6,327 24,485 15,510 198,360 97,225 1,171,163 2010-14 61,107 6,705 77,330 9,974 145,721 59,034 1,116,319 361,602 6,579,079 2015-19 150,452 19,226 1,208,335 121,797 7,968,901 2020-24 3,640,521 2024-29 Interest $ 904,473 865,215 824,424 782,038 737.997 2,966,717 1,576.897 177,797 $ 192,563 $ 56,263 $ 178,448 $ 54,364 $ 416,794 $ 166,350 $ 3,243,574 $ 1,042,403 $ 23,620,152 $ 8,835,558 Fiscal Year 2005 2006 2007 2008 2009 2010-14 2015-19 2020-24 2024-29 Loans Safe Drinking Water Accum- Revolving Loan Fund General Obligation ulated Y02007 Bonds - 2003 unpaid Totals Principal Interest Principal Interest acation Principal Interest $ 77,662 $ 66,340 $ 211,066 $ 353,361 $ 56,686 $ 1,580,504 $ 1,493,921 80,931 96,241 217,148 339,347 1,586,555 1,460,439 84,339 92,834 223,262 332,833 1,647,389 1,398,860 87,889 89,283 229,410 326,135 1,709,981 1,334,848 91,589 85,583 240,592 319,252 1,779,911 1,268,330 519,137 366,723 1,313,158 1,477,253 9,811,851 5,248,008 638,012 247,849 1,573,590 1,210,579 11,539,290 3,176,348 784,107 101,754 1,951,592 840,524 6,376,220 1,120,075 2,440,182 348,635 2,440,182 348,635 $ 2.363 666 $ 1,146.607 $ 8,400,000 $ 5,547,919 $ 56,686 $ 38,471,883 $ 16,849,464 Commitments The City leases police cars, police motorcycles, copiers and real estate under operating leases. Rental disbursements for the year ended June 30, 2004 were $97,355. Future minimum lease payments for years subsequent to June 30, 2004, are as follows: 2004-05 $ 108,734 2005-06 109,079 2006-07 95,296 2007-08 54,792 2008-09 54,083 2009-10 18,028 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 15. Risk management 16. The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets; torts; errors and omissions; injuries to employees; and natural disasters. The City purchases commercial insurance for such risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. Construction commitments The Oregon Safe Drinking Water Revolving Loan Fund has made a loan commitment to the City in the amount of $4,000,000. As of June 30, 2004 the City had drawn $2,363,666, leaving a balance available of $1,636,334 This amount will be used to fund construction contract commitments as follows: Well houses and pumping equipment Water treatment Reservoirs 231 2,289,430 668,824 17. Interfund transfers Cash transfers are indicative of funding for capital projects, debt service, subsidies of various city operations and re-allocations of special revenues. The following schedule briefly summarizes the city's transfer activity: Non-cash transfers occur between proprietary funds for payment of debt by a fund when the long-term obligation is reported in a different fund or when a proprietary fund acquires a capital asset which will be used in a different fund's operations. Other Governmental .Transfers out Street Funds Cash General $ 280,000 $ 205,257 Street 27,940 Transportation Impact Fee 370,000 Other Governmental Fands 20,000 78,880 Water 34,900 Wastewater Treatment Plant 89,707 Internal service funds 12,740 Transfers In: Wastewater Internal Water Well Treatment Service Water Construction Plant Funds Total $ $ $ $ 65,000 550,000 $ 485,257 188,000 215,940 370,000 98,880 270,000 854,900 280,000 434,707 12,740 Total cash transfers 300,000 819,424 65,000 550,000 738,000 2,472,424 Non-cash Governmental activities Water Well Construction Wastewater Treatment Plant Construction Other Enterprise 3,044 30,464 20,861 54,369 1,474,304 1,474,304 1,280,520 1,280.520 21,570 21.570 Total non-cash transfers 1,477,348 1,332,554 20,861 2,830,763 $ 300,000 $ 819,424 $ 1,542,348 $ 550,000 $ 1,332,554 $ 758,861 $ 5,303,187 Total transfers 34 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 10. Defined benefit pension plan - Pacific Life (continued) C. Schedule of employer contributions Annual Required Fiscal Contribution Year Ended and Annual June 30, Pension Cost 1992 $ 336,849 1993 359,033 1994 400,481 1995 433,486 1996 426,819 1997 458,355 1998 449,920 1999 202,223 2000 3,106 2001 294 2002 -- 2003 -- 2004 -- Percentage Net Pension Contributed Obligation 100% $ -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 100% -- 11. Defined benefit pension plan - Oregon PERS A. Plan description The City participates in the Oregon Public Employees Retirement System (PERS) which is governed by the provisions of Oregon Revised Statutes Chapter 238. PERS is a cost-sharing multiple-employer defined benefit pension plan which provides retirement and disability benefits, cost of living adjustments and death benefits to members and beneficiaries. The governing authority of the system is the Public Employees Retirement Board (PERB) which is required to take actions necessary to maintain the system as a qualified governmental retirement plan under the Internal Revenue Code and related regulations. In this regard, PERB may impose limits on contributions, benefit payments and other limitations or procedures. PERS issues a publicly available financial report that includes financial statements and required supplementary information, That report may be obtained by writing to Public Employees System, P.O. Box 23700, Tigard, OR 97281-3700 or by calling (503) 598-7377. B. Funding policy The contribution rate of 6 percent of salary for members is set by state statute. The contribution rate for the City is set by PERB and is periodically changed based upon actuarial computations of the amount needed to adequately provide for benefits. The City's current rate is 8.17 percent of member salaries. -- 31 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 13. Segment information for Enterprise Funds The City maintains two Enterprise Funds, which provide water and wastewater services. Summary financial information for the water and wastewater utilities for the year ended June 30, 2004, is as follows: Condensed statement of net assets Water Wastewater Assets Current assets $ 4,343,675 $ 5,094,468 Restricted cash and investments 563,766 Capital assets 1.7,702,200. 42,855,703 Total assets 22,609,641 47,950,171 Liabilities Current liabilities 2,081,236 492,770 Noncurrent liabilities 10,474,938 27,651,531 Total liabilities 12,556,174 28,144,301 Net assets Invested in capital assets, net of related debt 6,938,534 15,204,172 Restricted 1,236,282 2,690,507 Unrestricted 1,878,651 1,911,191 Total net assets $ 10.053.467 $ 19.805.870 Condensed statement of revenues, expenses and changes in net assets Operating revenue $ Depreciation expense Other operating expenses Operating income (loss) Nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net assets - beginning Net assets - ending $ Condensed Statement cash flows Cash provided by operating activities $ Cash (used in) noncapital financing activities Cash (used in) capital and related financing activities Cash provided by investing activities Net increase (decrease) in cash Cash - beginning of year Cash - end of year 2,292,646 $ 3,464,389 108,392 2,029,522 954,353 1,761,823 1,229,901 (326,956) (184,035) 1,047,687) 1,045,866 421,505 618,044 (854,900) 1,230,515 8,822,952 10.053.467 1,374,643) 671,320 30,464 (434,707) 1,107,566) 20,913,436 19.805.870 1,430,893 $ 1,909,396 (239,900) (434,707) (303,907) (1,889,661) 36,171 58,004 923,257 (356,968) 3,192,989 5,194,737 $ 4,116,246 $ 4,837,769 14. Contingencies - accumulated sick leave Portions of sick leave accumulated at any point in time can be expected to be redeemed before termination of employment; however, such redemptions cannot be reasonably estimated. As of June 30, 2004, City employees had accumulated 3,373 days of sick leave. 33 CITY OF WOODBURN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2004 ASSETS Cash and investments Receivables Advances to other funds TOTAL ASSETS LIABILITIES Accounts payable and accrued items Advances from other funds Deferred revenue Matured coupons payable TOTAL LIABILITIES FUND BALANCES Reserved for debt service Unreserved TOTALFUNDBALANCES TOTAL LIABILITIES AND FUND BALANCES Special Debt Capital Revenue Service Proiects Totals 1,599,743 $ 386,794 $ 5,066,037 $ 7,052,574 918,090 24,560 196,687 1,139,337 .... 85,000 85,000 $ 2,517~833 $ 411~354 $ 5~347~724 $ 8,276~911 1,402 $ -- $ 864,753 21,121 -- 933 432,945 $ 434,347 85,000 85,000 181,609 1,067,483 -- 933 866,155 22.054 699,554 1,587,763 -- 389,300 -- 389,300 1,651,678 -- 4,648,170 6,299,848 1,651,678 389,300 4,648,170 6,689,148 2.517,833 $ 411,354 $ 5~347,724 $ 8,276~911 36 COMBINING AND INDMDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF WOODBURN COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS June 30, 2004 ASSETS Cash and investments Receivables TOTAL ASSETS LIABILITIES Accounts payable and accrued items Deferred revenue TOTAL LIABILITIES FUND BALANCES Unreserved TOTAL LIABILITIES AND FUND BALANCES $ $ $ $ General Operating Transit Reserve System Investigation and Seizure State Revenue Sharing 209,789 $ 35,123 -- 7,554 7,983 $ 110,185 -- 38,215 209,789 $ 42,677 $ 7,983 $ 1487400 --$ 55 --$ -- -- 6,722 .... 6,727 209,789 2097789 $ 35,950 42~677 $ 7,983 7,983 $ 148,400 148,400 Continued on page 39 38 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSPORTATION IMPACT FEE - CAPITAL PROJECTS FUND (A MAJOR FUND) Year Ended June 30, 2004 Budget Actual Variance REVENUES System development charges $ 1,100,000 $ 1,151,137 $ Interest 100,000 71,466 TOTAL REVENUES 51,137 (28,534) 1,200,000 1,222,603 22,603 EXPENDITURES Material and services 300,000 -- 300,000 Capital outlay 3,954,203 2,786,050 1,168,153 Contingency 2,660,156 -- 2,660,156 TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance at beginning of year Fund balance at end of year 6,914,359 2,786,050 4,128,309 (5,714,359) (1,563,447) 4,150,912 (370,000) (370,000) -- (6,084,359) (1,933,447) 4,150,912 6,084,359 6,084,359 -- $ -- $ 4,150,912 $ 4,150,912 -- 35 CITY OF WOODBURN .., COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS Year Ended June 30, 2004 REVENUES Property taxes Franchise fees Permits and fees Intergovernmental Interest Other General Operating Transit Investigation Reserve System and Seizure State Revenue Sharing - $ 115,492 $ 63,268 2,446 446 2,332 19,705 143 190,579 1,210 TOTAL REVENUES 4,778 198,911 143 191,789 EXPENDITURES General government Public safety Highways and streets Capital outlay Debt service 212,601 5,000 - - 3,950 - 57,141 28,285 TOTAL EXPENDITURES 212,601 5,000 89,376 Excess (deficiency) of revenues over expenditures 4,778 (13,690) (4,857) 102,413 OTHER FINANCING SOURCES (USES) Transfers in Transfers out 21,800 (1,960) -. (2O,O0O) TOTAL OTHER FINANCING SOURCES (USES~ 19,840 -_ (20,000) Net change in fund balances Fund balance at beginning of year 4,778 6,150 (4,857) 82,413 205,011 29,800 12,840 65,987 Fund balance at end of year $ 209,789 $ 35~950 $ 7~983 $ 148,400 Continued on page 41 40 CITY OF WOODBURN COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2004 REVENUES Property taxes System development charges Franchise fees Permits and fees Intergovernmental Interest Other TOTAL REVENUES EXPENDITURES General government Public safety Highways and streets Capital outlay Debt service TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) __ Net change in fund balances Fund balance at beginning of year Fund balance at end of year Special Debt Capital Revenue Service Proiects Totals $ 115,492 $ 471,260 $ 14,455 - 281,263 - 449,504 - 18,910 1,804 143,404 332,898 251,669 70,162 100,305 389,861 586,752 332,898 266,124 281,263 519,666 121,019 533,265 1,023,028 473,064 1,144,895 2,640,987 584,642 5,000 3,950 139,274 28,285 170,823 172,887 38,666 2,054,680 80,107 757,529 5,000 42,616 2,193,954 279,215 761,151 261,877 170,823 302,241 2,346,340 (1,201,445) 3,278,314 (637,327) 75,077 (98,880) 238,074 1,413,604 1 ~651,678 - 744,347 744,347 302,241 87,059 $ 389 300 $ (457,098) 5,105,268 4,648,170 819,424 (98,880) 720,544 83,217 6,605,931 37 CITY OF WOODBURN COMBINING BALANCE SHEET DEBT SERVICE FUNDS June 30, 2004 ASSETS Cash and investments Receivables TOTAL ASSETS LIABILITIES Deferred revenue Matured coupons payable TOTAL LIABILITIES FUND BALANCES Reserved for debt service TOTAL LIABILITIES AND FUND BALANCES Bonded Debt $ 97,082 $ 12,580 Bancroft Bond Urban Renewal Redemption Debt Service Totals 6,310 $ 283,402 $ 386,794 -- 11,980 24,560 $ 109~662 $ 6~310 $ 295,382 $ 411,354 11,603 -- 9,518 933 -- 21,121 933 11,603 933 9,518 22,054 98,059 S 109,662 $ 5,377 6,310 $ 285,864 389 300 295~382 $ 411.354 42 CITY OF WOODBURN COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUNDS Year Ended June 30, 2004 REVENUES Property taxes Interest TOTAL REVENUES EXPENDITURES Debt service Net change in fund balances Fund balance at beginning of year Fund balance at end of year Bonded Bancroft Bond Urban Renewal Debt Redemption Debt Service Totals $ 185,396 $ ~ $ 285,864 $ 1,750 54 - 187,146 54 285,864 170,823 16,323 54 285,864 81,736 5,323 $ 98~059 $ 5,377 $ 285~864 $ 471,260 1,804 473,064 170,823 302,241 87,059 389~300 43 CITY OF WOODBURN COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS June 30, 2004 ASSETS Cash and investments Receivables Advances to other funds TOTAL ASSETS LIABILITIES Accounts payable and accrued items Advances from other funds Deferred revenue TOTAL LIABILITIES FUND BALANCES Unreserved TOTAL LIABILITIES AND FUND BALANCES Parks/ Street/Storm Recreation Special Drain Capital Capital Assessment Improvement Improvement Information Services $ 500,364$ 1,912,778 $ 476,982 $ 83,750 181,609 15,078 .... -- 85,000 .... $ 681~973 $ 2 012 856 $ 476~982 $ 83,750 27,376 $ 342,208 $ -- $ 40 85,000 ...... 181,609 ...... 293,985 342,208 -- 40 387,988 1,670,648 $ 681 973~$ 476,982 83,710 476,982 $ 83 750 Continued on page 45 44 Storm Water Public Works General Fund System Facility Economic Capital Development Construction Development Improvement Equipment Replacement Cipriano Ferrel Totals 1,015,839 $ 42,234 $ 326,163 $ 168,698 $ 539,381 $ (152) $ 5,066,037 196,687 85,000 1,015,839 $ 42~234 $ 326.163 $ 168,698 $ 539~381 $ (152) $ 5,347,724 __ $ -- $ -- $ 31,107 $ 32,214 $ --$ 432,945 85,000 181,609 31,107 32,214 1,015,839 42,234 326,163 137,591 507,167 (152) 1,015~839 $ 42,234 $ 326,163 $ 168,698 $ 53%381 $ (152)$ 699,554 4,648,170 5,347~724 45 CITY OF WOODBURN COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS Year Ended June 30, 2004 REVENUES System development charges Franchise fees Intergovernmental Interest Other TOTAL REVENUES EXPENDITURES General govenmaent Highways and streets Capital outlay Debt service TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balances Fund balance at beginning of year Fund balance at end of year Parks/ Street/Storm Recreation Special Drain Capital Capital Assessment Improvement Improvement Information Services $ $ 223,227 $ 251,669 - 6,223 63,964 4,485 881 375,909 13,943 382,132 315,633 227,712 14,824 38,885 34,869 534,136 338,998 44,022 134,002 17,859 617,043 373,867 (234,911) (58,234) - 151,861 227,712 (137,037) 161,347 (234,911) (58,234) 227,712 24,310 622,899 1,728,882 249,270 59,400 $ 387,988 $ 1,670,648 $ 476~982 $ 83 710 Continued on page 4 7 46 Storm Water Public Works System Facility Development Construction Economic Development General Fund Capital Equipment Cipriano Improvement Replacement Ferrel Totals 109,671 $ 11,546 506 9 - $ $ $ - $ 332,898 - 251,669 (15,344) 85,506 70,162 3,956 2,479 6,265 100,305 389,861 121,226 506 3,956 (12,865) 6 265 _ 85,506 1,144,895 3,797 10,712 3,278 14,509 3,278 106,717 (2,772) - 172,887 - 38,666 - 877,452 186,587 85,658 2,054,680 36,085 80,107 36,085 877,452 186,587 85,658 2,346,340 (32,129) (890,317) (180,322) (152) (1,201,445) 106,717 (2,772) 909,122 45,006 443,000 140,000 744,347 (32,129) (447,317) (40,322) (152) (457,098) 358,292 584,908 547,489 5,105,268 1,015,839 $ 42,234 $ 326,163 $ 137,591 $ 507 167 $.~~.~$ 4.648 170 47 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds The various special revenue funds account for revenues derived from specific taxes or other earmarked revenue sources, including federal and state grant awards, which are restricted to finance particular functions or activities. Funds included in this category are: General Operating Reserve - accounts for the accumulation of interest reserved for future expenditures. Transit System - accounts for resources for the purpose of transportation services. Investigation and Seizure - accounts for asset seizure and forfeiture resources for the purpose of police services. State Revenue Sharing - accounts for resources and expenditures for the purpose of complying with regulatory requirements. Housing Rehabilitation - accounts for grant and loan resources for the purpose of providing loans to low-income homeowners for housing rehabilitation. Federal Programs - accounts for grants for the purpose of administering the City's retired senior volunteer program. Cable Franchise Management - accounts for resources for the purpose of operating, repairing and upgrading cable access programming. City Gas Tax - accounts for the resources for the purpose of repair and maintenance of the City's streets. Building - accounts for resources for the purpose of enforcing building code. Library Endowment - accounts for donations and other resources for the purpose of purchasing books and equipment. Museum Endowment - account for donations and other resources for the purpose of acquiring additions to the Museum's collection. CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OPERATING RESERVE - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Interest Other TOTAL REVENUES EXPENDITURES Contingency Net change in fund balance Fund balance at beginning of year Fund balance at end of year Budget Actual Variance $ 4,000 $ 2,446 $ (1,554) -- 2,332 2,332 4,000 4,778 778 100,000 -- 100,000 (96,000) 4,778 100,778 205,000 205,011 11 $ 109,0005 209,789 $ 100,789 48 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSIT SYSTEM - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Property taxes Intergovemrnental Interest Other TOTAL REVENUES EXPENDITURES Fixed route Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Budget Actual Variance $ 115,729 $ 115,492 $ (237) 62,000 63,268 1,268 1,286 446 (840) 27,000 19 705 (7,295) 206,015 198,911 (7,104) 241,058 212,601 28,457 9,800 -- 9,800 250,858 212,601 38,257 (44,843) (13,690) 31,153 21,800 (1,960) 19,840 (25,o03) 25,003 21,800 (1,960) 19,840 6,150 29,800 31,153 4,797 _-$ 35,950 $ 35,950 49 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INVESTIGATION AND SEIZURE - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Interest Budget Actual Variance --$ 143 $ 143 EXPENDITURES Material and services Net change in fund balance Fund balance at beginning of year Fund balance at end of year 17,000 (17,000) 17,000 5,000 (4,857) 12,840 7~983 12,000 12,143 (4,160) 7~983 50 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STATE REVENUE SHARING - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Intergovernmental Interest TOTAL REVENUES Budget Actual 125,000 $ 190,579 1,339 1,210 126,339 191,789 Variance $ 65,579 (129) 65,450 EXPENDITURES Material and services Capital outlay Debt service Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance at beginning of year Fund balance at end of year 9,000 3,950 5,050 110,000 57,141 52,859 28,285 28,285 -- 16,822 -- 16,822 164,107 89,376 74,731 (37,768) 102,413 140,181 (20,000) (20,000) -- (57,768) 82,413 140,181 57,768 65,987 8,219 $ -~ $ 148,400 $ 148~400 51 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOUSING REHABILITATION - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Interest Other TOTAL REVENUES Budget Acmfl $ 5,000 $ 6,193 $ 100,000 112,884 105,000 119,077 Variance 1,193 12,884 14,077 EXPENDITURES Personal services Capital outlay Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures 22,000 12,129 9,871 55,000 55,000 -- 309,942 -- 309,942 386,942 67,129 319,813 (281,942) 51,948 333,890 OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance at beginning of year Fund balance at end of year (184,000) (465,942) 465,942 $ -- $ (15,000) 169,000 36,948 502,890 465,942 -- 502,890 $ 502,890 52 REVENUES Intergovernmental Interest TOTAL REVENUES CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FEDERAL PROGRAMS - SPECIAL REVENUE FUND Year Ended June 30, 2004 Budget Actual Variance $ 53,681 $ 58,661 $ -- 179 4,980 179 53,681 58,840 5,159 EXPENDITURES Personal services Material and services TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) Net change in fund balance Fund balance at beginning of year Fund balance at end of year 94,911 9,995 85,677 9,083 104,906 94,760 9,234 912 10,146 (51,225) (35,920) 15,305 53,277 (980) 52,297 1,072 (1,072) $ --$ 53,277 (980) 52,297 16,377 5,865 22,242 $ 15,305 6,937 22,242 -- 53 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CABLE FRANCHISE MANAGEMENT - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Franchise fees Interest Other TOTAL REVENUES Budget Actual Variance $ 18,000 $ 14,455 $ (3,545) -- 34 34 5,500 4,346 (1,154) 23,500 18,835 (4,665) EXPENDITURES Material and services Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 27,000 18,536 8,464 3,000 -- 3,000 30,000 18,536 11,464 (6,500) 299 6,799 6,500 5,686 (814) $ -- $ 5,985 $ 5~985 54 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CITY GAS TAX- SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Intergovernmental Interest TOTAL REVENUES Budget $ 126,445 $ 1,500 Actual Variance 136,996 $ 10,551 2,783 1,283 127,945 139~779 11,834 EXPENDITURES Material and services Capital outlay Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 7,000 237,878 65,696 -- 7,000 8,670 229,208 -- 65,696 310,574 8,670 301,904 (182,629) 182,629 131,109 313,738 182,629 -- --$ 313,738 $ 3137738 -- 55 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL BUILDING - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Permits and fees Interest Other TOTAL REVENUES Budget Actual Variance $ 283,653$ 281,263 $ (2,390) 4,000 4,693 693 -- 2,841 2,841 287,653 288,797 1,144 EXPENDITURES Personal services Material and services Capital outlay Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance at beginning of year Fund balance at end of year 241,399 215,561 25,838 44,065 31,055 13,010 21,000 18,463 2,537 331,293 -- 331,293 637,757 265,079 372,678 (350,104) 23,718 373,822 (2,940) (2,940) (353,044) 20,778 373,822 353~044 353,044 -- -- $ 373,822 $ 373,822 56 REVENUES Interest CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIBRARY ENDOWMENT - SPECIAL REVENUE FUND Year Ended June 30, 2004 Budget Actual Variance $ 3,000 $ 677 $ (2,323) EXPENDITURES Contingency Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance at beginning of year Fund balance at end of year 25,000 (22,000) 677 (58,000) (8o,ooo) 80,000 (58,000) (57,323) 78,865 -- $ 21,542 25,000 22,677 22,677 (1,135) $ 21~542 57 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MUSEUM ENDOWMENT - SPECIAL REVENUE FUND Year Ended June 30, 2004 REVENUES Interest Other Budget Actual Variance --$ 106 $ 1,296 106 1,296 TOTAL REVENUES 1,402 1,402 EXPENDITURES Material and services 4,000 4,000 Net change in fund balance Fund balance at beginning of year (4,000) 4,000 1,402 7,935 5,402 3,935 Fund balance at end of year --$ 9~337 58 NONMAJOR GOVERNMENTAL FUNDS Debt Service Funds The two Debt Service Funds account for the payment of principal and interest on the general obligation bonds recorded in the General Long-Term Debt Account Group. Revenue is mainly derived from assessments and property taxes levied against property owners. Funds included in this category are: Bonded Debt - accounts for the payment of general obligation bond principal and interest. Bancroft Bond Redemption - accounts for the payment of Bancroft improvement bonds pr/ncipal and interest. Urban Renewal Debt Service - accounts for the accumulation of resources to repay debt incurred for Urban Renewal projects. CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL BONDED DEBT - DEBT SERVICE FUND Year Ended June 30, 2004 REVENUES Property taxes Interest TOTAL REVENUES Budget $ 166,000 $ 2,000 168,000 Actual 185,396 $ 1,750 187,146 Variance 19,396 (250) 19,146 EXPENDITURES Debt service Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 171,000 79,000 170,823 177 79,000 250,000 170,823 79,177 (82,ooo) 82,000 16,323 81~736 98,323 (264) --$ 98,059 $ 98?059 59 REVENUES Interest CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL BANCROFT BOND REDEMPTION - DEBT SERVICE FUND Year Ended June 30, 2004 Budget Actual Variance --$ 54 $ 54 EXPENDITURES Debt service Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 2,000 3,400 5,400 (s,4oo) 5,400 54 5,323 --$ 5,377 $ 2,000 3,400 5,400 . 5,454 (77) 5,377 -- 60 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL URBAN RENEWAL DEBT SERVICE - DEBT SERVICE FUND Year Ended June 30, 2004 REVENUES Property taxes EXPENDITURES Debt service Net chm~ge in fund balance Fund balance at beginning of year Fund balance at end of year Budget Actual Variance $ 105,000 $ 285,864 $ 180,864 100,000 -- 100,000, 5,000 285,864 280,864 $ 5,000 $ 285~864 $ 280~864 61 NONMAJOR GOVERNMENTAL FUNDS Capital Projects Funds The various capital projects funds account for the resources used for the acquisition, construction or major improvement of City buildings, streets, water and wastewater projects, parks and recreation facilities. Funds included in this category are: Special Assessment - accounts for assessment for the purpose of constructing street, water and wastewater capital projects benefiting specific properties. Street/Storm Drain Capital Improvement - accounts for resources to repair and maintain the City's streets and storm drainage system. Parks/Recreation Capital Improvement - accounts for resources to acquire and construct park and recreation facilities. Information Services - accounts for transfers from other funds for the purpose of information services management. Storm Water System Development - accounts for resources to construct storm water systems. . Public Works Facility Construction - accounts for transfers from other funds for the purpose of constructing a public works shop. Economic Development - accounts for grants and expenditures for the purpose of constructing infrastructure. General Fund Capital Improvement - accounts for transfers from the General fund for the purpose of general capital improvements. Equipment Replacement - accounts for transfers from other funds for the purpose of purchasing equipment. Cipriano Ferrel - accounts for grants and expenditures for the purpose of constructing the Capriano Ferrel Center. CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL ASSESSMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 REVENUES Interest Other Budget $ 15,000 $ 430,000 Actual Variance 6,223 $ (8,777) 375,909 (54,091) TOTAL REVENUES 445,000 382,132 (62,868) EXPENDITURES Material and services Capital outlay Debt service 40,000 38,885 1,115 1,027,899 534,136 493,763 -- 44,022 (44,022) TOTAL EXPENDITURES 1,067,899 617,043 450,856 Net change in fund balance Fund balance at beginning of year (622,899) 622,899 (234,911) 387,988 622,899 -- Fund balance at end of year -- $ 387,988 $ 387 988 62 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STREET/STORM DRAIN CAPITAL IMPROVEMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 Budget Actual Variance REVENUES Franchise fees $ 266,000 $ 251,669 $ (14,331) Interest 20,000 63,964 43,964 Other 242,600 -- (242,600) TOTAL REVENUES EXPENDITURES Material and services Capital omlay Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 528,600 315,633 (212,967) 40,000 34,869 5,131 1,072,334 338,998 733,336 810,148 -- 810,148 1,922,482 373,867 1,548,615 (1,393,882) (58,234) 1,335,648 1,393,882 1,728,882 335,000 -- $ 1~670,648 $ 1,670,648 -- 63 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PARKS/RECREATION CAPITAL IMPROVEMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 Budget Actual Variance REVENUES System development charges $ 255,000 $ 223,227 $ (31,773) Interest -- 4,485 4,485 TOTAL REVENUES 255,000 227,712 (27,288) EXPENDITURES Contingency 504,270 -- 504,270 Net change in fund balance Fund balance at beginning of year (249,270) 227,712 476,982 249,270 249,270 -- Fund balance at end of year 476,982 $ 476 982 64 REVENUES Interest Other TOTAL REVENUES CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INFORMATION SERVICES - CAPITAL PROJECTS FUND Year Ended June 30, 2004 Budget Actual Variance $ 1,000 $ 881 $ (119) 1,000 13,943 12,943 2,000 14,824 12,824 EXPENDITURES Personal services Material m~d services Capital outlay Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance at beginning of year Fund balance at end of year 10,000 9,002 998 125,000 125,000 -- 26,000 17,859 8,141 52,630 -- 52,630 213,630 151,861 61,769 (211,630) (137,037) 74,593 159,630 161,347 1,717 (52,000) 24,310 76,310 52,000 59,400 7,400 -- $ 83 710 $ 83,710 -- 65 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STORM WATER SYSTEM DEVELOPMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 REVENUES System development charges Interest Other TOTAL REVENUES Budget Actual Variance 52,000 $ 109,671 $ 57,671 16,000 11,546 (4,454) -- 9 9 68,000 121,226 53,226 EXPENDITURES Material and services Capital outlay Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 15,000 210,000 752,122 3,797 11,203 10,712 199,288 -- 752,122 977,122 14,509 962,613 (909,122) 106,717 1,015,839 909,122 909,122 -- -- $ 1~0157839 $ 1~015~839 66 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PUBLIC WORKS FACILITY CONSTRUCTION - CAPITAL PROJECTS FUND Year Ended June 30, 2004 REVENUES Interest Other TOTAL REVENUES Budget $ 1,000 2,400 3,400 Actual $ 506 $ (494) (2,400) 506 (2,894) EXPENDITURES Capital outlay Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 21,000 26,772 3,278 17,722 -- 26,772 47,772 3,278 44,494 (44,372) (2,772) 41,600 44,372 45,006 634 --$ 42,234 $ 427234 -- 67 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ECONOMIC DEVELOPMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 REVENUES Interest Budget Actual Variance $ 6,500 $ 3,956 $ (2,544) EXPENDITURES Material and services Capital outlay Debt service Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance at beginning of year Fund balance at end of year 20,000 -- 20,000 170,000 -- 170,000 36,085 36,085 -- 140,210 -- 140,210 366,295 36,085 330,210 (359,795) (32,129) 327,666 359,795 358,292 (1,503) -- $ 3267163 $ 3267163 68 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND CAPITAL IMPROVEMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 Budget Actual Variance REVENUES Intergovemmental $ 25,000 Interest -- Other 25,000 (15,344) $ (40,344) 2,479 2,479 -- (25,000) TOTAL REVENUES 50,000 (12,865) (62,865) EXPENDITURES Capital outlay Contingency 1,058,337 188,571 877,452 180,885 -- 188,571 TOTAL EXPENDITURES 1,246,908 877,452 369,456 Excess (deficiency) of revenues over expenditures (1,196,908) (890,317) 306,591 OTHER FINANCING SOURCES (USES) Transfers in 612,000 443,000 (169,000) Net change in fund balance Fund balance at beginning of year (584,908) 584,908 (447,317) 137,591 584,908 -- Fund balance at end of year -- $ 137,591 $ 137,591 -- 69 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EQUIPMENT REPLACEMENT - CAPITAL PROJECTS FUND Year Ended June 30, 2004 REVENUES Interest Budget 9,000 Actual Variance 6,265 (2,735) EXPENDITURES Capital outlay Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance at beginning of year Fund balance at end of year 696,489 186,587 509,902 (687,489) (180,322) 507,167 140,000 140,000 (547,489) (40,322) 507,167 547,489 547,489 -- -- $ 507,167 $ 507 167 70 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CIPRIANO FERREL - CAPITAL PROJECTS FUND Year Ended June 30, 2004 REVENUES Intergovernmental EXPENDITURES Capital outlay Net change in fund balance Fund balance at beginning of year Fund balance at end of year Budget Actual Variance $ 86,000 $ 85,506 86,000 85,658 $ (494) 342 ( 52) (152) (152) $_~_.l~J. " 71 PROPRIETARY FUNDS Major Enterprise Funds These funds account for self-supporting activities which render services on a user charge basis to the public. Funds included in this category are: Water - accounts for resources and expenses for the purpose of water services for residents of the city. Water Well Construction - accounts for transfers from the Water fund for the purpose of construction. Wastewater Treatment Plant - accounts for resources and expenses for the purpose of treating wastewater generated in the city. Wastewater Treatment Plant Construction - accounts for proceeds from long- term obligations for the purpose of construction. CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WATER - ENTERPRISE FUND (A MAJOR FUND) Year Ended June 30, 2004 REVENUES Charges for services Interest Other Budget $ 2,277,500 5,000 33,000 Actual Variance 2,292,646 5,508 56,304 15,146 5O8 23,304 TOTAL REVENUES 2,315,500 2,354,458 38,958 EXPENDITURES Water supply Meter reading Water administration Contingency 911,050 813,130 97,920 161,159 161,099 60 28,689 26,466 2,223 563,913 -- 563,913 TOTAL EXPENDITURES 1,664,811 1,000,695 664,116 Excess (deficiency) of revenues over expenditures 650,689 1,353,763 703,074 OTHER FINANCING SOURCES (USES) Transfers in Transfers out 65,000 65,000 (854,900) (854,900) TOTAL OTHER FINANCING SOURCES (USES) (789,900) (789,900) Net change in fund balance Fund balance - beginning (139,211) 563,863 703,074 139,211 145,288 6,077 Fund balance - ending 709,151 $ 709,151 Reconciliation to generally accepted accounting principles Inventories Capital assets, net of depreciation Compensated absences payable Accrued interest payable Long-term obligations 112,562 17,702,200 (21,675) (204,272) (10,763,666) Net assets - ending $ 7?534,300 72 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WATER WELL CONSTRUCTION - ENTERPRISE FUND (A MAJOR FUND) Year Ended June 30, 2004 REVENUES Interest Other TOTAL REVENUES EXPENDITURES Design engineering Construction engineering Right-of-way Construction Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Proceeds from long-term obligations Transfers in TOTAL OTHER FINANCING SOURCES (USES) Budget Actual Variance $ 15,000 $ 17,425 $ 2,425 -- 23,866 23,866 15,000 41,291 26,291 400,000 418,404 (18,404) 64,629 56,774 7,855 35,000 17,300 17,700 10,212,000 10,730,117 (518,117) 1,972,665 -- 1,972,665 12,684,294 11,222,595 1,461,699 (12,669,294) (11,181,304) 1,487,990 10,000,000 9,748,292 (251,708) 550,000 550,000 -- 10,550,000 10,298,292 (251,708) Net change in fund balance Fund balance - beginning (2,119,294) (883,012) 1,236,282 2,119,294 2,119,294 -- Fund balance - ending --$ Reconciliation to generally accepted accounting principles Net assets - ending 1~236,282 $ 17236,282 $ 17236,282 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WASTEWATER TREATMENT PLANT - ENTERPRISE FUND (A MAJOR FUND) Year Ended June 30, 2004 Budget Actual Variance REVENUES Charges for services $ 1,581,028 $ 1,640,909 $ 59,881 Interest 20,000 7,163 ( 12,837) Other 41,500 69 (41,431) TOTAL REVENUES 1,642,528 1,648,141 5,613 EXPENDITURES Wastewater treatment plant operations Sewer line maintenance Sewer administration Contingency 1,382,511 1,325,342 57,169 266,832 251,449 15,383 62,740 58,499 4,241 349,362 -- 349,362 TOTAL EXPENDITURES 2,061,445 1,635,290 426,155 Excess (deficiency) of revenues over expenditures (418,917) 12,851 431,768 OTHER FINANCING SOURCES (USES) Transfers out (434,700) (434,707) (7) Net change in fund balance Fund balance - beginning (853,617) (421,856) 431,761 853,617 853,617 -- Fund balance - ending 431,761 $ 431,761 Reconciliation to generally accepted accounting principles Inventories Capital assets, net of depreciation Accrued interest Compensated absences payable Long-term obligations 63,794 42,855,703 (380,619) (35,011) (27,651,531) Net assets - ending $ 15~2847097 74 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WASTEWATER TREATMENT PLANT CONSTRUCTION ENTERPRISE FUND (A MAJOR FUND) Year Ended June 30, 2004 REVENUES Charges for services Interest Other Budget Actual Variance 1,764,923 $ 1,823,480 $ 58,557 55,000 31,917 (23,083) -- 69,858 69,858 TOTAL REVENUES 1,819,923 1,925,255 105 332 EXPENDITURES Design engineering Construction engineering Right-of-way Construction Debt service Contingency 146,491 60,110 86,381 11,000 -- 11,000 28,800 8,910 19,890 973,600 187,684 785,916 2,381,421 2,381,421 -- 1,681,988 -- 1,681,988 TOTAL EXPENDITURES 5,223,300 2,638,125 2,585,175 Net change in fund balance Fund balance - beginning (3,403,377) (712,870) 2,690,507 3,403,377 3,403,377 -- Fund balance - ending $ -- $ 2,690,507 $ 2?690,507 Reconciliation to generally accepted accounting principles Net assets - ending $ 2,690,507 -- 75 PROPRIETARY FUNDS Nonmaj or Enterprise Funds Water System Development - accounts for resources for the purpose of water system construction and expansion. Wastewater Capital Improvement - accounts for resources for the purpose of wastewater system capital improvements. Wastewater System Development - accounts for resources for the purpose of wastewater system construction and expansion. CITY OF WOODBURN COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2004 ASSETS Current assets Cash and investments NET ASSETS Unrestricted Water Sytem Development Wastewater Wastewater Capital System Improvement Development Totals $ 1,282,885 $ 151,730 $ 1,679,536 $ 3,114,151 $ 1~282,885 $ 151,7305 1~679,5365 3~114~151 76 CITY OF WOODBURN COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2004 NONOPERATING REVENUES (EXPENSES) Interest Other Interest Total nonoperating revenues (expenses) OTHER REVENUES AND TRANSFERS Capital contributions Transfers out Total other revenues and transfers Change in net assets Net assets - beginning of year Net assets - end of year Water Wastewater Wastewater Sytem Capital System Development Improvement Development Totals 13,238 $ 1,954 $ 16,970 $ -- 16,137 -- (26,290) -- 32,162 16,137 (26,290) 13,238 (8,199) 16,970 22,009 421,505 -- -- (21,570)__ 421,505 21.570 434,743 (29,769) 848,142 181,499 $ 1 282 885 $ 151 730 $ 671,320 1,092,825 -- (21,570) 671,320 1,071,255 688,290 1,093,264 991,246 2,020,887 1,679,536 $ 3 114 151 -' 77 CITY OF WOODBURN COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Other Water Wastewater Wastewater System Capital System Development Improvement Development $ $ 16,137 $ Totals $ 16,137 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions Principal paid on long-term obligations Interest paid on long-term obligations Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year 421,505 671,320 1,092,825 (21,570) (21,570) (26,290) (26,290) 421,505 (47,860) 671,320 1,044,965 13,238 1,954 16,970 32,162 434,743 (29,769) 688,290 1,093,264 848,142 181,499 991,246 2,020,887 $ 1,282,885 $ 151,730 $ 1,679,536 $ 3,114,151 CASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities Other Net cash provided by operating activities $ - $ - $ $ 16,137 - 16,137 $ 16,137 $ - $ 16,137 78 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WATER SYSTEM DEVELOPMENT - ENTERPRISE FUND Year Ended June 30, 2004 REVENUES System development charges Interest Budget Actual Variance TOTAL REVENUES EXPENDITURES Capital outlay Contingency TOTAL EXPENDITURES Net change in fund balance Fund balance - beginning Fund balance - beginning Reconciliation to generally accepted accounting principles Net assets - ending $ 2O3,OOO $ 421,505 $ 218,505 50,000 13,238 (36,762) 253,000 434,743 181,743 198,000 -- 198,000 903,142 -- 903,142 1,101,142 -- 1,101,142 (848,142) 434,743 1,282,885 848,142 848,142 -- --~$ 1,282,885 $ 1282885 $ 1~282,885 -- 79 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WASTEWATER CAPITAL IMPROVEMENT - ENTERPRISE FUND Year Ended June 30, 2004 REVENUES Interest Other TOTAL REVENUES EXPENDITURES Capital outlay Debt service TOTAL EXPENDITURES Net change in fund balance Fund balance - beginning Fund balance - ending Budget Actual Variance $ 3,500 $ 1,954 $ (1,546) 14,754 16,137 1,383 Reconciliation to generally accepted accounting principles Net assets - ending 18,254 18,091 (163) 152,360 -- 152,360 47,860 47,860 -- 200,220 47,860 152,360 (181,966) (29,769) 152,197 181,966 181,499 (467) $ 151,730 $ 151,730 $ 151~730 80 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL WASTEWATER SYSTEM DEVELOPMENT - ENTERPRISE FUND Year Ended June 30, 2004 Budget Actual REVENUES System Development Charges $ 350,000 $ 671,320 $ Interest 10,300 16,970 Variance 321,320 6,670 TOTAL REVENUES 360,300 688,290 327,990 EXPENDITURES Materials and services Capital outlay 15,000 20,000 -- 15,000 -- 20,000 TOTAL EXPENDITURES 35,000 35,000 Excess (deficiency) of revenues over expenditures 325,300 688,290 362,990 OTHER FINANCING SOURCES (USES) Transfers out (1,316,546) (1,316,546) Net change in fund balance Fund balance - beginning (991,246) 688,290 1,679,536 991,246 991,246 -- Fund balance - ending -- $ 17679,536 $ 1,6797536 Reconciliation to generally accepted accounting principles Net assets - ending $ 1,679,536 '- 81 PROPRIETARY FUNDS Internal Service Funds These funds are used to account for goods or services provided to other funds of the City on a cost reimbursement basis. Central Services - accounts for the purchase of services and supplies. Resources are provided by transfers from other funds. Self-Insurance - accounts for the payment of insurance premiums. Resources are provided by transfers from other funds. Technical and Environmental Services management, engineering, inspection, and provided by transfers from other funds. Building Maintenance - accounts for the repair and maintenance of buildings. Resources are provided by transfers from other funds. - accounts for the purchase of planning services. Resources are CITY OF WOODBURN COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2004 ASSETS Current assets Cash and investments Receivables Inventories Total current assets Capital assets, net of depreciation TOTAL ASSETS LIABILITIES Current liabilities Accounts payable and accrued items Deposits Compensated absences payable TOTAL LIABILITIES NET ASSETS Invested in capital assets, net of related debt Unrestricted TOTAL NET ASSETS Technical and Central Self- Environmental Services Insurance Services Building Maintenance Totals 10,880 $ 247,622 $ 214,250 .... 2,299 9,636 .... 43,479 $ 516,231 -- 2,299 -- 9,636 43,479 528,166 4,533 392,148 48,012 920,314 20,516 247,622 216,549 387,615 20,516 247,622 604,164 489 -- 20,348 13,401 34,238 .... 2,000 -- 2,000 .... 64,593 8,764 73,357 489 -- 86,941 22,165 109,595 .... 387,615 20.027 247,622 129,608 $ 20 027 $ 247,622 $ 517~223 $ 4,533 392,148 21,314 418,571 25,847 $ 810~719 82 CITY OF WOODBURN COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS Year Ended June 30, 2004 OPERATING REVENUES Charges for services Rents Total operating revenues OPERATING EXPENSES Personal services Material and services Depreciation Total operating expenses Operating (loss) NONOPERATING REVENUES (EXPENSES) Interest Other Total nonoperating revenues (expenses) (Loss) before operating transfers Technical and Central Self- Environmental Building Services Insurance Services Maintenance Totals 72,719 $ -- $ 72,719 -- 279,930 279,930 72,719 279,930 352,649 -- 12,429 656,558 50,443 719,430 15,527 354,642 181,305 265,941 817,415 .... 8,500 664 9,164 15,527 367,071 846,363 317,048 1,546,009 (15,527) (367,071) (773,644) 99 13,655 13,754 (1,773) 2,336 3,282 327,772 43,127 330,108 46,409 (36,963) (727,235) (37,118) (1,193,360) 653 6,370 ~- 384,554 653 390,924 (36,465) (802,436) OPERATING TRANSFERS Transfers in .... 753,664 5,197 Transfers out .... (11,760) (980) Total operating transfers Change in net assets Net assets - beginning of year Net assets - end of year 741,904 (4,217) (1,773) (36,963) 14,669 (32,248) 21,800 284,585 502,554 58,095 $ 20,027 $ 247~622 $ 517,223 $ 25,847 $ 758,861 (12,740) 746,121 (56,315) 867,034 810~719 83 CITY OF WOODBURN COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year Ended June 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to suppliers Payments to employees Other Net cash (used in) operating activities CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Cash transfers in Cash transfers out Net cash provided by (used in) non-capital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets CASH FLOWS FROM INVESTING ACTIVITIES Interest Net increase (decrease) in cash and cash equivalents Cash and cash equivalents--beginning of year Cash and cash equivalents--end of year Technical and Central Self- Environmental Building Services Insurance Services Maintenance Totals $ $ 74,055 $ 279,930 $ 353,985 (16,614) (354,642) (163,097) (267,955) (802,308) (12,429) (650,948) (44,587) (707,964) 13,655 327,772 43,127 384,554 (2,959) (39,299) (696,863) (32,612) (771,733) 738,000 738,000 01,760) (980) (12,740) 726,240 (980) 725,260 (1,656) (1,656) 99 2,336 3,282 653 6,370 (2,860) (36,963) 31,003 (32,939) (41,759) 13,740 284,585 183,247 76,418 557,990 $ 10,880 $ 247,622 $ 214,250 $ 43,479 $ 516,231 Reconciliation of operating (loss) to net cash (used in) operating activites Operating (loss) Adjustments to reconcile operating (loss) to net cash (used in) operating activites Depreciation Other (Increase) decrease in assets Receivables Inventories Increase (decrease) in liabilities Accounts payable and accrued items Compensated absences payable Net cash provided by (used in) operating activities $ (15,527) $ (367,07l) $ (773,644) $ (37,118) $ (1,193,36~) 13,655 327,772 (1,576) 489 8,500 664 9,164 43,127 384,554 1,336 1,336 (1,576) 18,208 ¢,014) 16,683 5,610 5,856 11,466 $ (2,959) $ (39,299) $ (696,863) $ (32,612) $ (771,733) 84 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CENTRAL SERVICES - INTERNAL SERVICE FUND Year Ended June 30, 2004 REVENUES Interest Other TOTAL REVENUES Budget Actual Variance $ -- $ 99 $ 99 5,000 13,655 8,655 5,000 13,754 8,754 EXPENDITURES Materials and services Net change in fund balance Fund balance - beginning Fund balance - ending $ Reconciliation to generally accepted accounting principles Net assets - ending 18,740 15,527 3,213 (13,740) (1,773) 11,967 13,740 21,800 8,060 -- $ 20~027 $ $ 20,027 20,027 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SELF-INSURANCE - INTERNAL SERVICE FUND Year Ended June 30, 2004 REVENUES Interest Other Budget Actual Variance $ 2,575 $ 2,336 $ (239) 357,579 327,772 (29,807) TOTAL REVENUES 360,154 330,108 (30,046) EXPENDITURES Personal services Materials and services Contingency 12,429 12,429 -- 387,799 354,642 33,157 239,568 -- 239,568 TOTAL EXPENDITURES 639,796 367,071 272,725 Net change in fund balance Fund balance - beginning (279,642) (36,963) 242,679 279,642 284,585 4,943 Fund balance - ending --~$ 247,622 $ 247?622 Reconciliation to generally accepted accounting principles Net assets - ending $ 247,622 86 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TECHNICAL AND ENVIRONMENTAL SERVICES - INTERNAL SERVICE FUND Year Ended June 30, 2004 Budget Actual Variance REVENUES Charges for services $ 114,000 $ 72,719 $ (41,281) Interest 3,000 3,282 282 Other 8,000 43,127 35,127 TOTAL REVENUES 125,000 119,128 (5,872) EXPENDITURES Public works administration 178,648 152,064 26,584 Engineering 665,084 639,078 26,006 Central garage 69,219 42,767 26,452 Contingency 62,048 -- 62,048 TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures 974,999 833,909 141,090 (849,999) (714,781) 135,218 OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) Net change in fund balance Fund balance at beginning of year Fund balance at end of year 738,000 738,000 (11,760) (11,760) 72&240 726,240 (123,759) 11,459 135,218 123,759 182,742 58,983 194,201 $ 194,201 Reconciliation to generally accepted accounting principles Capital assets, net of depreciation Compensated absences payable Net assets - ending 387,615 (64,593) $ 517,223 87 CITY OF WOODBURN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL BUILDING MAINTENANCE - INTERNAL SERVICE FUND Year Ended June 30, 2004 REVENUES Charges for services Interest TOTAL REVENUES EXPENDITURES Personal services Materials and services Contingency TOTAL EXPENDITURES Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance at beginning of year Fund balance at end of year Reconciliation to generally accepted accounting principles Capital asset, net of depreciation Compensated absences payable Net assets - ending Budget $ 278,850 $ 800 Actual Variance 279,930 $ 1,080 653 (147) 279,650 280,583 933 45,288 44,587 701 269,090 265,941 3,149 22,387 -- 22,387 336,765 310,528 26,237 (57,115) (29,945) 27,170 (980) (980) (58,095) (30,925) 58,095 61,003 27,170 2,908 30,078 $ 30 078 4,533 (8,764) $ 25 847 88 DISCLOSURES AND INDEPENDENT AUDITOR'S COMMENTS REQUIRED BY THE MINIMUM STANDARDS FOR AUDITS OF OREGON MUNICIPAL CORPORATIONS Oregon Administrative Rules 162-10-050 through 162-10-320 incorporated in the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, and comments and disclosures required in audit reports. The required statements and schedules are set forth in preceding sections of this report. Required comments and disclosures related to our audit of such statements and schedules are set forth in the following pages. · Accounting and Internal Controls · Collateral · Indebtedness · Budget · Insurance and Fidelity Bonds · Programs Funded from Outside Source · Highway Funds · Investments · Public Contracts and Purchasing BOLDT, CARLISLE & SMITH LLC CERTIFIED PUBLIC ACCOUNTANTS PARTNERSHIP · ASSURANCE · INNOVATION CITY OF WOODBURN DISCLOSURES AND INDEPENDENT AUDITOR'S COMMENTS REQUIRED BY THE MINIMUM STANDARDS FOR AUDITS OF OREGON MUNICIPAL CORPORATIONS Year Ended June 30, 2004 Accounting and Internal Controls The broad objectives of internal accounting control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded from unauthorized use or disposition and that financial records are reliable to permit the preparation of financial statements. The following operative objectives are necessary to achieve the broad objectives: ao Transactions are executed in accordance with management's general or specific authorization. Transactions are recorded as necessary (1) to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements and (2) to maintain accountability for assets. Access to assets is permitted only in accordance with management's authorization. The recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control. Any projection of a current evaluation of internal accounting control to future periods is subject to the risk that the procedures may become inadequate because of changes in conditions and that the degree of compliance with prescribed procedures may deteriorate. The accounting records and internal controls are adequate considering the size and complexity of the municipal corporation's financial activities. 89 SALEM: 480 CHURCH STREET S.E. · SALEM, OR 97301 · PHONE: (503) 585-7751 · FAX: (503) 370-3781 STAYTON: 408 NORTH THIRD AVENUE · STAYTON, OR g7383 · PHONE: (503) 769-2186 · FAX: (503) 769-4312 ALBANY: ~2os 9TM AVENUE S.E. · ALBANY, OR 97322 · PHONE: (541) 928-6500 · FAX: (541) 928-6501 DISCLOSURES AND INDEPENDENT AUDITOR'S COMMENTS REQUIRED BY THE MINIMUM STANDARDS FOR AUDITS OF OREGON MUNICIPAL CORPORATIONS (Continued) Collateral ORS 295.015 requires collateral pool certificates of participation to be obtained from the pool manager of the depository in an amount equal to the funds on deposit in excess of the amount insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. Collateral pool certificates warrant that the pool manager holds custodian's receipts for eligible securities pledged by the depository bank to secure deposits of public funds of a value as of the last valuation date of not less than 25 percent of the agg-regate amount of certificates outstanding. At June 30, 2004, the deposits of the City were covered by the following collateral pool certificates: Depository Bank Pool Manager Amount U S Bank Oregon State Treasury $ 2,000,000 Deposits were secured in accordance with ORS 295.015. Indebtedness The legal debt limitation has not been exceeded. Budget 1. Preparation and adoption The budgets for the years ended June 30, 2004 and 2005 were prepared and adopted in compliance with legal requirements. 2. Execution The budget for the year ended June 30, 2004, was executed in compliance with legal requirements, except that expenditures in excess of appropriations (which is prohibited by ORS 294.435) were made in the following categories: Fund/Appropriations Category Special Assessment Debt service Water Well Construction Design engineering Construction Appropriations Expen&tures $ - $ 44,022 400,000 418,404 10,212,000 10,730,117 Variance $ (44,022) (18,404) (518,117) Prior to overexpending an appropriation category, the City Council may, by resolution (ORS 294.450), transfer amounts between appropriation categories. 90 DISCLOSURES AND INDEPENDENT AUDITOR'S COMMENTS REQUIRED BY THE MINIMUM STANDARDS FOR AUDITS OF OREGON MUNICIPAL CORPORATIONS (Continued) Insurance and Fidelity Bonds The City's insurance agent confirmed that the following policies were in force at June 30, 2004: Company Policy Number Coverage Limit Term City County Insurance 03LWDB General and Auto Liability $5,000,000 CSL 07-01-03/04 03APDWBD Auto Physical Damage Per Agreement 07-01-03/04 03PWBD ~Property/Mobile Equipment $37,284,423.01 07-01-03/04 03BWBD Boiler and Machinery Per Property Schedule 07-01-03/04 NLC Mutual 03E Excess Earthquake N/A 07-01-03/04 Fidelity and Deposit 03C Excess Crime N/A 07-01-03/04 Our audit did not include a determination of adequacy of coverage since we are not trained to make such a determination. The City has obtained fidelity bond coverage for the following personnel: Finance officer Public employees blanket bond $ 100,000 50,000 Programs Funded From Outside Sources The City operated various programs funded wholly or partially by governmental agencies. Our report on compliance with laws and regulations and on internal controls used in administering federal financial assistance programs appear on pages 93 through 96 of this report. In addition to our audit, these grants and projects are subject to further review by federal audit agencies. Highway Funds The City used revenue from taxes on motor vehicle use fuel in compliance with ORS 373.240 to 373.250. -- 91 DISCLOSURES AND INDEPENDENT AUDITOR'S COMMENTS REQUIRED BY THE MINIMUM STANDARDS FOR AUDITS OF OREGON MUNICIPAL CORPORATIONS (Continued) Investments Funds of the City were invested in compliance with ORS 294.035. Public Contracts and Purchasing 1. Awarding of public contracts The City awarded public contracts in accordance with ORS 279. 2. Construction of public improvements The City did not construct any public improvements as defined by ORS 279. Boldt, Carlisle & Smith, LLC Certified Public Accountants Salem, Oregon October 17, 2004 92 GRANT COMPLIANCE - SINGLE AUDIT BOLDT, CARLISLE & SMITH LLC CERTIFIED PUBLIC ACCOUNTANTS PARTNERSHIP · ASSURANCE · iNNOVATION REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council CITY OF WOODBURN Woodburn, Oregon We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of THE CITY OF WOODBURN as of and for the year ended June 30, 2004, which collectively comprise the City's basic financial statements and have issued our report thereon dated October 17, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 93 SALEM: 480 CHURCH STREET S.E. · SALEM, OR 97301 · PHONE: (503) 585-7751 · FAX: (503) 370-3781 STAYTON: 408 NORTH THIRD AVENUE · STAYTON, OR 97383 · PHONE: (503) 769-2186 · FAX: (503) 769-4312 ALBANY: 1205 9TM AVENUE S.E. · ALBANY, OR 97322 · PHONE: (541) 928-6500 · FAX: (541) 928-6501 Honorable Mayor and Members of the City Council CITY OF WOODBURN Woodburn, Oregon REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENT .4 UDITING STANDARDS (CONTINUED) This report is intended solely for the information and use of the Mayor and Members of the City Council, management, others within the City, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Salem, Oregon October 17, 2004 94 BOLDT, CARLI'SLE & SMITH LLC CERTIFZED PUBLIC ACCOUNTANTS PARTNERSHIP · ASSURANCE · INNOVATION REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Mayor and Members of the City Council CITY OF WOODBURN Woodburn, Oregon Compliance We have audited the compliance of CITY OF WOODBURN with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2004. The City's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and pants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Govermnents, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, CITY OF WOODBURN complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2004. 95 SALEM: 480 CHURCH STREET S.E. · SALEM, OR 97301 · PHONE: (503) 585-7751 · FAX: (503) 370-3781 STAYTON: 408 NORTH THIRD AVENUE · STAYTON, OR 97383 · PHONE: (503) 769-2186 · FAX: (503) 769-4312 ALBANY: 1205 9TM AVENUE S,E. · ALBANY, OR 97322 · PHONE: (541) 928-6500 · FAX: (541) 928-6501 Honorable Mayor and Members of the City Council CITY OF WOODBURN REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 (Continued) Internal Control Over Compliance The management of CITY OF WOODBURN is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Mayor and Members of City Council, management, others within the City, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Salem, Oregon October 17, 2004 96 -- CITY OF WOODBURN SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2004 Section I Summary of Auditor's Results Financial Statements Type of auditor's report issued: Internal controls over financial reporting: Material weakness(es) identified? Reportable condition(s) identified that are not considered to be material weakness(es)? Noncompliance material to financial statements notes? Federal awards Internal control over mai or programs: · Material weakness(es) identified? · Reportable condition(s) identified that are not considered to be material weakness(es)? Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A- 133? Identification of major programs: CFDA Number Name of Federal Program or Cluster Unqualified No None reported No No None reported Unqualified No 66.468 Capitalization Grants for Drinking Water State Revolving Fund Dollar threshold used to distinguish between type A and type B programs: $ Auditee qualified as a low-risk auditee? No 300,000 Section II - Financial Statement Findings None Section III - Federal Award Findings and Questioned Costs None 97 CITY OF WOODBURN SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2004 Federal Grantor/Pass-Through Grantor/Program Title Department of Housing and Urban Development Passed through Oregon Economic and Community Development Department Community Development Block Grants/State's Program Pass-Through CFDA Entity Identifying Federal Number Number Expenditures 14.228 C02004 $ 85,506 Department of Justice Juvenile Accountability Incentive Block Grant 16.523 Passed through Woodbum Together Juvenile Justice and Delinquency Prevention - Allocation to States (A) 16.540 Local Law Enforcement Block Grant Program 16.592 Total Department of Justice 2002-YN-FX-0079 1,423 23,141 8,019 32,583 Department of Transportation Passed through Federal Transportation Administration Formula Grants for Other Than Urbanized Areas 20.509 Passed through Oregon Association of Chiefs of Police Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 20.601 Safety Incentive Grants for Use of Seatbelts 20.604 Total Deparmlent of Transportation 43,126 2,025 2,616 47,767 Environmental Protection Agency Passed through Oregon Economic and Community Development Department Capitalization Grants for Drinking Water State Revolving Fund Committee on National Community Services Retired and Senior Volunteer Program 66.468 S02010 94.002 1,321,291 61,578 $ 1,548,725 Total Expenditures of Federal Awards NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2004 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards is a summary of the city's federal award programs presented on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. 98 TABLE OF CONTENTS (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) Debt Service Funds Bonded Debt ........................................................................................................................................................... Bancroft Bond Redemption ..................................................................................................................................... Urban Renewal Debt Service .................................................................................................................................. Capital Projects Funds Special Assessment ................................................................................................................................................. Street/Storm Drain Capital Improvement ................................................................................................................ Parks/Recreation Capital Improvement ................................................................................................................... Information Services ............................................................................................................................................... Storm Water System Development .................................................. : ...................................................................... Public Works Facility Construction ......................................................................................................................... Economic Development ........................................................................................................................................... General Fund Capital Improvement ......................................................................................................................... Equipment Replacement .......................................................................................................................................... Cipriano Farrel ........................................................................................................................................................ Proprietary Funds Major Enterprise Funds Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Water ....................................................................................................................................................................... Water Well Construction ......................................................................................................................................... Wastewater Treatment Plant .................................................................................................................................... Wastewater Treatment Plant Construction .............................................................................................................. Nonmajor Enterprise Funds Combining Statement of Net Assets .............................................................................................................................. Combing Statement of Revenues, Expenses and Changes in Net Assets ...................................................................... Combining Statement of Cash Flows ............................................................................................................................. Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Water System Development .................................................................................................................................... Wastewater Capital Improvement ........................................................................................................................... Wastewater System Development ........................................................................................................................... Internal Service Funds Combining Statement of Net Assets .............................................................................................................................. Combining Statement of Revenues, Expenses and Changes in Net Assets ................................................................... Combining Statement of Cash Flows ............................................................................................................................. Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Central Services ....................................................................................................................................................... Self-Insurance .......................................................................................................................................................... Technical and Environmental Services .................................................................................................................... Building Maintenance ............................................................................................................................................. DISCLOSURES AND INDEPENDENT AUDITOR'S COMMENTS REQUIRED BY THE MINIMUM STANDARDS FOR AUDITS OF OREGON MUNICIPAL CORPORATIONS ......................................................................................... GRANT COMPLIANCE - SINGLE AUDIT Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards ...................................... Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 Schedule of Findings and Questioned Costs ............................... Schedule of Findings and Questioned Costs ........................................................................................................................ Schedule of Expenditures of Federal Awards ...................................................................................................................... Note to Schedule of Expenditures of Federal Awards ......................................................................................................... Page 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 8O 81 82 83 84 85 86 87 88 89 - 92 93, 94 95, 96 97 98 99 IOA February 28, 2005 TO: FROM: SUBJECT: RECOMMENDATION: Honorable Mayor and City Council through City Administrator Jim Mulder, Director of Community Development Zone Change 04-04 located at 2325 N. Boones F~ry Road. No action is necessary. 2005. The public hearing has been re-noticed for March 14, DISCUSSION: This proposal was scheduled for public hearing on February 28, 2005. However, due to an error by the local newspaper, the hearing notice ,was not published in accordance with the Woodburn Development Ordinance requirements. The hearing has been re-noticed for March 14, 2005. The applicant has granted an extension of the 120 day rule from April 1,2005 to May 1,2005. FINANCIAL IMPACT: There is no financial impact associated with the recommended action. Attachments: Attachment A: Applicant's continuance request, dated 2/23/05 Agenda Item Review: City Administrator City Attorney 35 02/23/05 WED 12:50 GARRET'I't HEMANN JENNINGS, COMSTO~CK & TRETHE;WY, P.C. A'T'TORN IE'~ AT LAW MAre< B. COMS"rOCK PAUL A~ DAKOPOLO$ TAMMY M. DENTINGI~R K~M ~ HOYT GEORGE M. JE:NNINGS JOHN E. POUJNO** CHE~ TFP!'I*H EWY THERESA M, W~~ BRUCE ~ ~ SEAN E. J. CHANNING BENNETT* ANTHON~ R. KRErr'Z~EI~*~' T~.cY ~ P~ NA~N B. JOHN L. HEMANN ~ I=, HERRON J. KEV~N SHU~.A *ADMITTED IN OREGON *"eADMI'T'TE~ iN OR EGON AND WA..flHINGTON WILLAMETTE P~AL 1011 COMMERCe... ST. Ng Surr~210 FAX 15035815891 GARRETr HEMANN ATTACHMENT A February23,2005 NAOMI ZWERDLING Senior Planner Woodbum Community Development Department 270 Montgomery Street Woodburn OR 97071 Via Fax: 1-503.982-5244 And First Class Mail Re: Zone Change Application No. 04-04 Our Client: Boones Ferry Place, L.L. C. Our File No. 10255001 Dear Ms. Zwerdling: For the purpose of continuing the City Council hearing tbr Zone Change 04-04 until March, the applicants hereby agree to extend the City's deadline under the 120-day rule from April 1, 2005 to May 1, 2005. We understand that it is necessary to continue the public hearing before the City Council due to the failure of the local paper to publish the required notice. Please let me know if you have any questions or commems regarding this matter. Sincerely, akreitzberg~garrettlaw, com ARK:ldn C: Boones Ferny Place, L.L.C. Via Fax: 503-585-7684 Gene Gascho n :\vq3docs\ 10255001X~werdlin g- 2/~3/0511:22 AM 36 lOB February 28, 2005 TO: FROM: SUBJECT: Honorable Mayor and City Council through City Administrator Jim Mulder, Director of Community Development Legislative Amendment 05-02; Annual Review of the Woodburn Development Ordinance RECOMMENDATION: In regard to this proposal, the City Council has the following options: · ' n Concur with the Planning Corem sslo s Final Order and approve the Final Focus Group Revisions to the Woodburn Development Ordinance. (2) Modify the Final Focus Group Revisions to the Woodburn Development Ordinance. It is recommended that the City Council instruct staff to prepare an ordinance adopting the draft revisions to the Woodburn Development Ordinance, and prepare findings to substantiate the Council's decision. BACKGROUND: The WDO was adopted by the City Council in July 2002. Section 1.101.08 of the WDO states that the Community Development Director shall report potential modifications of the WDO (due to new state and/or federal laws and rules, case law precedents, scrivener errors, and interpretations) to the City Council at the first meeting in the month of November so that the City Council may consider initiating appropriate measures to modify the WDO. A list of issues was provided to the City Council at their November 10, 2003 meeting. The City Council adopted Resolution No. 1745 on December 8, 2003 initiating the annual review of the Woodburn Development Ordinance (WDO). The proposed revisions have been sorted into two categories. The proposed revisions in the first category are minor amendments to the WDO, ,which do not require Measure 56 notice. The proposed revisions in the second category are major amendments to the WDO that require Measure 56 notice. The proposed revisions in the first category are the subject of this report· Agenda item Review: City Administrat~ City Attorney _~J~ Finance~' 37 Honorable Mayor and City Council February 28, 2005 Page 2 On September 27, 2004, the Mayor appointed a focus group to review city staff's draft revisions to the WDO. The focus group consisted of three members representing various interests and is listed as follows: 1. Jim Cox, City Council Member 2. Richard Knoles, Planning Commission Member 3. Dave Christoff, Business Community Representative The focus group began its review of the draft revisions of the WDO (first category) on October 29, 2004 and completed its review on December 10, 2004. The focus group by consensus made numerous revisions to city staff's draft and the final product is attached to this report as Exhibit "A.' On January 27, 2005, the Planning Commission held a public hearing to consider public testimony regarding the proposed revisions to the Woodburn Development Ordinance. On February 10, 2005 the Planning Commission adopted a final order recommending the City Council approve the Find Focus Group Draft. A notice of public hearing to be held before the City Council on February 28, 2005 was published in the Woodburn Independent in compliance with City ordinances. The final draft revisions of the WDO was made available for public review at City Hall. This proposal is being processed as a Type V legislative application that requires the Planning Commission to make a recommendation on the proposed WDO revisions to the City Council. The City Council is the final decision maker. DISCUSSION' The Woodburn Development Ordinance was adopted by the City Council in July 2002. The WDO was an entirely new code from the previous City codes. It was intended that after the ordinance was implemented, minor revisions would need to be made in regard to policy changes, clarifications, and grammatical and typographical errors. Thus, a process was included in Section 1.101.08 of the WDO for an annual review of the WDO. The proposed revisions to the WDO, listed in detail in Exhibit "A," were generated as part of the annual review of the WDO process. Substantive revisions to the WDO are summarized as follows: 1. Add a process for the revocation or modification of a permit. Honorable Mayor and City Council February 28, 2005 Page 3 Allow non-conforming single family dwellings in all zones to be rebuilt if destroyed to allow for homeowners to refinance their homes. Amend the code so that a change or expansion of an existing use triggers the wall and refuse facilities requirements in the code. Amend lot coverage in the Retirement Community Single Family Residential (RIS) Zone to allow a maximum of 40% for lots containing a primary building with an average height of 14 feet or less, and a maximum of 35% for lots with a primary building with an average height of more than 14 feet. This proposed revision to the WDO will allow the RIS Zone to have the same lot coverage standard as the Single Family Residential (RS) Zone. Allow for exceptions to the front yard setback for small structures (i.e.- trellis, arbor, pergola and archway). Update Manufactured Dwelling Park standards to make them consistent with state law. Revise the Medium Density Residential (RM) Zone so that the single family dwelling setback standards in the RS zone apply to single family dwellings in the RM zone. Move the provision in the commercial zones that the maximum yard abutting a street shall be 150 feet to the architectural guidelines section of the WDO where this provision would be a "should." The above stated revision would allow staff more flexibility in applying the 150 foot maximum yard setback based on the size and shape of a commercial lot and the existing buildings on a commercial site. Allow the initial required height of a fence on the side lot line abutting a street to be increased from 3 1/2 feet to 4 feet at the side property line adjacent to the street to allow for more privacy and security. 10. Remove the requirement that property line adjustments be subject to the access permit requirement and link the access section to the street section of the WDO. Two decisions (Court of Appeals and LUBA) were made where it was found that the nexus did not exist between a street improvement and a property line adjustment. Also, there is currently not a link in the access section to the street section of the WDO. Honorable Mayor and City Council February 28, 2005 Page 4 .Reduce the required by-pass lane width for a drive-through from 12 feet to 8 feet. A 24 foot wide drive-through and by-pass lane is wider than what is necessary. It is difficult for an applicant to meet the 24 foot wide drive-through and by-pass lane requirement on a commercial infill site. 12. Require at least 2 public street accesses for residential subdivisions 'with 25 or more lots. The WDO is somewhat unclear in regard to the City's ability to condition 2 public street accesses. Several subdivision applications have been processed where it was determined by the City that 2 public street accesses were necessary. 13. Require the paving of a driveway and parking for a detached garage. The paving of a driveway and parking for an attached garage is required in Section 3.104.05.B and C of the WDO. Requiring the paving of a driveway and parking for a detached garage is consistent with the above stated standard in the WDO. 14. Provide a 12 foot minimum and 20 foot maximum one-way commercial and industrial driveway width standard. A one-way commercial and industrial driveway width standard was not included in the WDO. Many commercial and industrial developments have ,,,,,anted to provide a one-way driveway and had no standard in the code to follow. 15. Change the compact parking stall width from 9 feet to 7.5 feet to match the 7.5 foot curb length for a 90 degree aisle. The compact parking stall width needs to be changed to accurately reflect a compact parking stall width. 6. Remove the non-habitable spaces in single family dwellings from the window calculation requirement. It is very difficult for the window calculation requirement to be met when non-habitable spaces (i.e - garage and attic) in single family dwellings are counted in the window calculation requirement. 17.Revise Section 4.102 of the WDO in regard to appeals to make it consistent with state taw. 18. Remove the code language that expansions adding less than t0% gross floor area trigger an administrative Type II design review request. Honorable Mayor and City Council February 28, 2005 Page 5 Structures have to be less than 1,000 square feet to trigger an administrative Type II design review request. 19. Revise code to allow parking in a required setback adjacent to a ,wall. Landscaping is already required in the front yard setback of the RM, CO, CG, IP, IL and P/SP zones to help screen cars on the front of sites that are parked perpendicular to a walt. Section 3.106.03.A.2.b.2 requires that all parking areas abutting a street shall provide a 42 inch vertical visual screen from the abutting street grade. Acceptable design techniques to provide the screening include plant materials; berms; free standing, architectural walls with an anti-graffiti finish; and depressed grade for the parking area. All screening shall comply with the vision standards of Section 3.103.10 of the WDO. 20. Revise use of "certify" related to review of Planned Unit Development Final Plan Approval. Need to change "certify" to "review and approve" since "certify" does not accurately reflect the approval process. The proposed revisions to the WDO are consistent with the goals and policies in the Woodburn Comprehensive Plan and no changes are proposed that require an amendment to the Comprehensive Plan because the proposed revisions are relatively minor. FINANCIAL IMPACT: There is no financial impact associated with the recommended action. Attachments: Attachment A: Attachment B: Attachment C: Planning Commission Final Order dated 2-10-05 Planning Commission Staff Report dated 1-27-05 (Exhibit "A" is included in Attachment A.) Planning Commission Minutes of 1-27-05 ATTACHMENT A IN THE PLANNING COMMISSION OF WOODBURN, OREGON LEGISLATIVE AMENDMENT 05-02 ) ) ) FINAL ORDER WHEREAS, a proposal was initiated by the Woodbum City Council to revise the text of the Woodbum Development Ordinance (WDO), and; WHEREAS, the Planning Commission reviewed the matter at their meeting of January 27, 2005, and; WHEREAS, the Planning Commission considered the written and oral testimony presented by staff, the appliCant, and other interested persons, and; WHEREAS, the Planning Commission closed the heating, and; WHEREAS, the Planning Commission moved to recommend that the City Council approve the draft revisions to the WDO and instructed staff to prepare a final order to substantiate the Commission's decision. NOW, THEREFORE, IT IS HEREBY ORDERED BY THE COMMISSION: The Planning Commission hereby recommends that the City Council adopt the draft revisions to the WDO as contained in Exhibit "^", based on the findings contained in Exhibit "B", which are attached hereto and by reference incorporated herein. Approved: Date r'XnlDIt "A' : d o :. u2 A'IN'ACHHENT A TABLE 2.2.1 In-Park Separations Matrix* Clearance From Manufactured Aecessory Decks, Landings, Garages Dwellings & Cabanas BuiMings Steps, Ramps, Awnings & Carports Property line & park street $ feet 5 feet $ feet $ feet Park sidewalk 2 feet 2 feet 0 fe~ 2 feet 3 feet 0 feet 6 feet Mfvd. dwelling or cabana on same lot 0 feet (When Permitted) Mfrd. dwelling or cabana on adjacent I 0 feet 6 feet 6 feet 6 feet lot Park buildings 10 feet 6 feet 6 feet 10 feet A¢-___-~___ry bid& on same lot 3 feet 03 feet 0 feet 6~ feet Acc_~.m~_ bldg. on adjacent lot 6 feet 6 feet 6 feet 6 feet Decks, landings, stei~, ramps, 0 feet 0 feet 0 feet 0 feet aw~__ings & carports on same lot Decks, landings, steps, ramps, 6 feet 6 feet 6 feet 6 feet awnings & carports on adjacent lot Garage on same lot 6 feet 3 feet 0 feet 6~ feet Garage on adjacent lot 6 feet 6 feet 6 feet 6 feet a) NOTE: See Section 90-3~(e) of the t~996Z00Z Oregon Manufactured Dwelling Standards for exceptions to this schedule. b) Except for clearance between manufactured dwellings on adjacent lots and between manufactured dwellings and property lines, clearance shown in this schedule may be further reduced according to the Oregon One and Two Family Dwelling Speelalt~ Code or the Oregon Structural Code with prior approval from the authority having juriadiction. c) Set-backs to perimeter property lines may be greater than those shown in the above table. See municipalities planning and zoning ordinance (WDO Section 2.203.1 d) The set-backs and clearances required in this table shall be measured to the exterior walls of the structures and do not include eave overhangs except for awnings and carports. *SOURCK: Table 903, 1996 Oregon Manufactured Dwelling Standards 2) 3) Within a manufactured dwelling space. 10 feet x 20 feet, measured from the edge of thc street pavement or sidewalk, whichever is closer. All vehicular parking spaces shall be paved. Section 2.203.15.B Woodburn Development Ordinance [P/DO] Page 2.2-19 J. ly I. 2002 ATTACHlqENT B Type HI decisions involve significant discretion and evaluation of subjective approval standards, yet are not required to be heard by the City Council, except upon appeal. The process for these land use decisions is controlled by ORS 197.763. Notice of the application and the Planning Commission or Design Review Board hearing is published and mailed to the applicant, recognized neighborhood associations and property owners within 250 feet of the subject property. Notice must be issued at least 20 days before the initial evidentiary heating ~ and the staff report must be available at least seven days p~ before the hearing. At the evidentiary hearing~ held before the Planning Commission or the Design Review Board, all issues are addressed. The decision of the Planning Commission or Design Review Board is appealable to the City Council for a de hove public hearing. The City Council decision is the city's final decision and is appealable to LUBA within 21 days after it becomes final. In the event any decision is not classified, it shall be treated as a Type HI decision. D. Type IV Decisions. (Q~a,i-Judicial) Type IV decisions involve the greatest amount of discretion and evaluation of subjective approval standards and are directed at a closely circumscribed factual circumstance or relatively small number of persons. Type IV decisions must be heard by the City Council before a final decision cnn be rendered. Included are small scale annexations, comprehensive plan map amendments and zoning map amendments. The process for these land use decisions is controlled by ORS 197.763. Notice of the application and Planning Commission or the Design Review Board hearing is published and mailed to the applicant, recognized neighborhood associations and property owners within 250 feet of the subject property. Notice must be issued at least 20 days pre-hearing, and the staff report must be available at least seven days pre- hearing. At the evidentiary hearing held before the Planning Commission or the Design Review Board, all issues are addressed. The Commission or the Board makes a recommendation to the City Council, the City Council holds a de hove public hearing on the matter. The City Council decision is the City's final decision and is appealable to LUBA within 21 days after it becomes final. E. Type V Legislative Decisions. (Legislative) Type V decisions involve legislative actions where thc City Council enacts or amends the City's land use regulations, comprehensive plan, zoning maps or some other component of any of these documents where changes are such a size, diversity of ownership or interest as to be legislative in nature under state law. Section 4.101.06 Woodburn Development Ordinance [WDO] Page 4.1-4 .ruly ~, 2oo2 Type H. After the Community Development Director has deemed a Type II application complete, the Community Development Director shall issue a decision. The City shall send notice of the decision, by first class mail, to all record owners of property within 250 feet of the subject property, any City recognized neighborhood associations whose territory includes the subject property. The City's Type II notice of decision shall include the following information: An explanation of the nature of the application and the proposed use or uses which could be authorized; Street address or other easily understood location of the subject property, The name and telephone number of the planning staff person assigned to the application or is otherwise available to answer questions about the application; de A statement that the application and all supporting materials may be inspected at no cost, and copies may be obtained at reasonable cost, at City Hall during normal business hours; State that the decision will not become final until the period for filing an appeal to the City Council has expired and that the decision cannot be appealed directly to the Land Use Board of Appeals; and An explanation of appeal rights, including that any person who is adversely affected or aggrieved or who is entitled to written notice of the decision may appeal the decision. Type Ill or IV. Notice for all initial evidentiac7 public hearings concerning Type HI and 1V decisions shall conform to the requirements of this subsection. At least 20 days before a Type IH intial evidentiarv hearing, or at least 10 days before the first hearing of a Type IV application the '~:~" Director shall prepare and send, by first class mail, notice of the hearing to all record owners of propeWj within 250 feet of the subject property and to any City-recognized neighborhood association whose territory includes the subject property, ff an application would change the zone of property that includes any part of a mobile home or manufactured dwelling park, notice shall also be mailed to the tenants at least 20 days before but not more than 40 days before the initial evidentiary hearing. Notice of the application Section 4.101.09.A Woodburn Development Or~dinance [7/YDO. I Page 4.1-11 July 1, 2oo2 hearing shall include the following information: a. The time, date and location of the public hearing; Street address or other easily understood location of the subject property and City-assigned planning file number; A description of the applicant's pwposal, along with a list of citations of the approval criteria that the City will use to evaluate the proposal; de A statement that any interested party may testify at the hearing or submit written comments on the proposal at or before the hearing and that a staff report will be prepared and made available to thc public at least seven days prior to the hearing; A statement that any issue which is intended to provide a basis for an appeal to the City Council must be raised before the close of the public record. Issues must be raised and accompanied by statements or evidence sufficient to afford thc City and all part/es to respond to the issue; A statement that the application and all supporting materials and evidence submitted in support of the application may be inspected at no charge and that copies may be obtained at reasonable cost at City Hall during normal business hours; Thc name and telephone number of the planning staff person responsible for thc application or is otherwise available to answer questions about the application; and A statement advising that ADA access may be accommodated, upon receipt of a timely request. Type V. At least 20 days before to an initial evidentiarv public hearing at which a Type V decision is to be considered, the .... ri.' ~ Director shall issue a public notice that conforms to the requirements of this subsection and any applicable state statute. Notice shall be sent to affected §ovemmental entities, special districts, providers of urban services, the Oregon Department of Transportation and any affected recognized neighborhood associations and any party who has requested in writing such notice. Notice shall also be published in a newspaper of general circulation within the City. Notice issued under this Section 4.101.09.A Woodburn Development Ordinance [WDO] Page 4.1-12 July 1, 2OO2 subsection shall include the following information: a. The time, date and location of the public hearing; b. The City-assigned planning file number and title of the proposal; Co A description of the proposal in sufficient detail for people to determine the nature of the change being pwposed; A statement that any interested party may testify at the hearing or submit written comments on the proposal at or before to the heating; The name and telephone number of thc planning staff person responsible for the proposal and who interested people may contact for further information; and f. A statement advising that ADA access may be accommodated, upon receipt of a timely request. B. Posted Notice. Type HI and IV. Notice of an initial evidentiary public heating for a Type HI or IV decision shall be posted on the subject property as follows: City Posting. The Community Development Director shall post all required notices. o Number and Location. The Community Development Director shall post a notice on each frontage of the subject property, ffthe property's frontage exceeds 600 feet, one copy of the notice shall be posted for each 600 feet or fraction thereof. Notices shall be posted within ten feet of the street and shall be visible to pedestrians and motorists. Timing of Notice. The notice shall be posted at least 10 days prior to a public hearing. Once posted, the Director need not maintain a posted notice. The Community Development Director shall remove all signs within ten days following the event announced in the notice. C. Published Notice. Type IV and V. The Community Development Director shall publish a notice of a Type IV or V public hearing as described in this subsection, unless otherwise specified by Section 4.101.09.A Woodburn Development Ordinance [WDO] Page 4.1-13 July !, 2OO2 4.101.13,. If new evidence is submitted during thc period the record was left open, any participant may file a written request for an opportunity to respond to the new evidence and the decision-maker shall reopen the record. If the decision-maker reopens a record to admit new evidence, arguments or testimony, any person may raise new issues which relate to the new evidence, arguments, testimony or criteria for decision-making which apply to the matter at issue. Any continuance or extension of the record granted shall be subject to thc limitations of the 120-day rule. 5. Unless waived by the applicant, the decision-maker shall allow the applicant at least seven days after the record is closed to allow other parties to submit final written arguments, but not new evidence, in support of application. The City Council/Planning Commission/Design Review Board may limit the factual and legal issues that may be addressed in any continued hearing or open record period. The City Council on appeal or call-up for review of a Planning Commission or Community Development Director decision, shall consider the Planning Commission or Community Development Director decision. In all appeal or reviev! hearings, the applicant and other parities shall have an opportunity to present test'unony, arguments and evidence on all applicable criteria. The presentation of testimony, arguments and evidence shall not be limited to issues raised in a notice of appeal. If the City Council calls a Planning Commission decision up for review, the City Council may limit the issues that it will allow._ The rights of participants to continuances or open record 1:~..~.~."~ applicable to init/al evidentiary hearings do not apply. Ex-Parte Contacts~ Persopal Site Observatious~ Con_filets of Interest and Bias_ Before the beginning of each hearing item, the City Council/Planning Commission/Design Review Board chair shall ask the members of that decision- making body if there are any declarations of any ex-parte contacts, personal site observations, conflicts of interest or bias. A. Ex- parte Contacts. Section 4.101.12 Woodburfl Development Ordinance [WDO] Page 4.1-18 ,~uty i. 2OO2 · ~ 96 96 ~6 ~0o ~le Pe~ ' - Note: C, D, DO, E-l, & a-2 relate to Table 3.lA, Parking Space and Aisle Dimcmdom Figure 6.10 Parking Space and Aisle Dimensions Section 6~1 Figure 6.10 Woodbum Development Ordinanc~ IWOO ] Pag~ 6.102-10 J~dy I. 2Oo2 EXHIBIT "B" LEGISLATIVE FINDINGS LEGISLATIVE AMENDMENT 05-02 "Annual Review of the Woodburn Development Ordinance" II. PROPOSAL: This is a proposal initiated by the Woodburn City Council to revise the text of the Woodburn Development Ordinance (WDO). RELEVANT FACTS: The WDO was adopted by the City Council in July 2002. Section 1.101.08 of the WDO states that the Community Development Director shall report potential modifications of the WDO (due to new state and/or federal laws and rules, case law precedents, scrivener errors, and interpretations) to the City Council at the first meeting in the month of November so that the City Council may consider initiating appropriate measures to modify the WDO. A list of issues was provided to the City Council at their November 10, 2003 meeting. The City Council adopted Resolution No. 1745 on December 8, 2003 initiating the annual review of the Woodbum Development Ordinance (WDO). The proposed revisions have been sorted into two categories. The proposed revisions in the first category are minor amendments to the WDO which do not require Measure 56 notice. The proposed revisions in the second category are major amendments to the WDO that require Measure 56 notice. The proposed revisions in the first category are the subject of this report. On September 27, 2004, the Mayor appointed a focus group to review city staff's draft revisions to the WDO. The focus group consisted of three members representing various interests and are listed as follows. 1. Jim Cox, City Council Member 2. Richard Knoles, Planning Commission Member 3. Dave Christoff, Business Community Representative The focus group began its review of the draft revisions of the WDO (first category) on October 29, 2004 and completed its review on December 10, 2004. The focus group by consensus made numerous revisions to city staff's draft and the final product is attached to this report as Exhibit "A". Legislative Amendment 05-02 Page 1 III. IV. A notice of public hearing to be held before the Planning Commission on January 27, 2005 was published in the Woodburn Independent in compliance with City ordinances. The final draft revisions of the WDO was made available for public review at City Hall. This proposal is being processed as a Type V legislative application that requires the Planning Commission to make a recommendation on the proposed WDO revisions to the City Council. The City Council is the final decision maker. RELEVANT APPROVAL CRITERIA: Woodburn Development Ordinance Section 1.101.08 Annual Review of the WDO Woodburn Comprehensive Plan Chapter IX. Goals and Policies FINDINGS: The Woodbum Development Ordinance was adopted by the City Council in July 2002. The WDO was an entirely new code from the previous City codes. It was intended that after the ordinance was implemented, minor revisions would need to be made in regard to policy changes, clarifications, and grammatical and typographical errors. Thus, a process was included in Section 1.101.08 of the WDO for an annual review of the WDO. The proposed revisions to the WDO, listed in detail in Exhibit "A," were generated as part of the annual review of the WDO process. Substantive revisions to the WDO are summarized as follows: 1. Add a process for the revocation or modification of a permit. 2. Allow non-conforming single family dwellings in all zones to be rebuilt if destroyed to allow .for homeowners to refinance their homes. 3. Amend the code so that a change or expansion of an existing use triggers the wall and refuse facilities requirements in the code. Amend lot coverage in the Retirement Community Single Family Residential (RIS) Zone to allow a maximum of 40% for lots containing a primary building with an average height of 14 feet or less, and a maximum of 35% for lots with a primary building with an average height of more than 14 feet. This proposed revision to the WDO will allow the ElS Zone to have the same lot coverage standard as the Single Family Residential (RS) Zone. 5. Allow for exceptions to the front yard setback for small structures (i.e. - trellis, arbor, pergola and archway). Legislative Amendment 05-02 Page 2 6. Update Manufactured Dwelling Park standards to make them consistent with state law. Revise the Medium Density Residential (RM) Zone so that the single family dwelling setback standards in the RS zone apply to single family dwellings in the RM zone. o Move the provision in the commercial zones that the maximum yard abutting a street shall be 150 feet to the architectural guidelines section of the WDO where this provision would be a "should." The above stated revision would allow staff more flexibility in applying the 150 foot maximum yard setback based on the size and shape of a commercial lot and the existing buildings on a commercial site. Allow the initial required height of a fence on the side lot line abutting a street to be increased from 3 ½ feet to 4 feet at the side property line adjacent to the street to allow for more privacy and security. 10. Remove the requirement that property line adjustments be subject to the access permit requirement and link the access section to the street section of the .WDO. Two decisions (Court of Appeals and LUBA) were made where it was found that the nexus did not exist between a street improvement and a property line adjustment. Also, there is currently not a link in the access section to the street section of the WDO. 11. Reduce the required by-pass lane width for a drive-through from 12 feet to 8 feet. A 24 foot wide drive-through and by-pass lane is wider than what is necessary. It is difficult for an applicant to meet the 24 foot wide drive-through and by-pass lane requirement on a commercial infill site. 12. Require at least 2 public street accesses for residential subdivisions with 25 or more lots. The WDO is somewhat unclear in regard to the City's ability to condition 2 public street accesses. Several subdivision applications have been processed where it was determined by the City that 2 public street accesses were necessary. 13. Require the paving of a driveway and parking for a detached garage. The paving of a driveway and parking for an attached garage is required in Section 3.104.05.B and C of the WDO. Requiring the paving of a driveway and parking for a detached garage is consistent with the above stated standard in the WDO. 14. Provide a 12 foot minimum and 20 foot maximum one-way commercial and Legislative Amendment 05-02 Page 3 industrial ddveway width standard. A one-way commercial and industrial ddveway width standard was not included in the WDO. Many commercial and industrial developments have wanted to provide a one-way driveway and had no standard in the code to follow. 15. Change the compact parking stall width from 9 feet to 7.5 feet to match the 7.5 foot curb length for a 90 degree aisle. The compact parking stall width needs to be changed to accurately reflect a compact parking stall width. 16. Remove the non-habitable spaces in single family dwellings from the window calculation requirement. It is very difficult for the window calculation requirement to be met when non-habitable spaces (i.e - garage and attic) in single family dwellings are counted in the window calculation requirement. 17.Revise Section 4.102 of the WDO in regard to appeals to make it consistent with state law. 18. Remove the code language that expansions adding less than 10% gross floor area trigger an administrative Type II design review request. Structures have to be less than 1,000 square feet to trigger an administrative Type II design review request. 19. P, evise code to allow parking in a required setback adjacent to a wall. Landscaping is already required in the front yard setback of the P,M, CO, CG, IP, IL and P/SP zones to help screen cars on the front of sites that are parked perpendicular to a wall. Section 3.106.03.A.2.b.2 requires that all parking areas abutting a street shall provide a 42 inch vertical visual screen from the abutting street grade. Acceptable design techniques to provide the screening include plant materials; berms; free standing, architectural walls with an anti- graffiti finish; and depressed grade for the parking area. All screening shall comply with the vision standards of Section 3.103.10 of the W DO. 20. P,evise use of "certify" related to review of Planned Unit Development Final Plan Approval. Need to change "certify" to "review and approve" since "certify" does not accurately reflect the approval process. The proposed revisions to the WDO are consistent with the goals and policies in the Woodburn Comprehensive Plan and no changes are proposed that require an amendment to the Comprehensive Plan because the proposed revisions are relatively minor. Legislative Amendment 05-02 Page 4 CITY OF WOODBURN, OREGON PLANNING COMMISSION STAFF REPORT January 27, 2005 LEGISLATIVE AMENDMENT 05-02 ATTACHMENT B "Annual Review of the Woodburn Development Ordinance" I. PROPOSAL: II. This is a proposal initiated by the Woodbum City Council to revise the text of the Woodbum Development Ordinance (WDO). RELEVANT FACTS: The WDO was adopted by the City Council in July 2002. Section 1.101.08 of the WDO states that the Community Development Director shall report potential modifications of the WDO (due to new state and/or federal laws and rules, case law precedents, scrivener errors, and interpretations) to the City Council at the first meeting in the month of November so that the City Council may consider initiating appropriate measures to modify the WDO. A list of issues was provided to the City Council at their November 10, 2003 meeting. The City Council adopted Resolution No. 1745 on December 8, 2003 initiating the annual review of the Woodburn Development Ordinance (WDO). The proposed revisions have been sorted into two categories. The proposed revisions in the first category are minor amendments to the WDO which do not require Measure 56 notice. The proposed revisions in the second category are major amendments to the WDO that require Measure 56 notice. The proposed revisions in the first category are the subject of this report. On September 27, 2004, the Mayor appointed a focus group to review city staff's draft revisions to the WDO. The focus group consisted of three members representing various interests and are listed as follows. 1. Jim Cox, City Council Member 2. Richard Knoles, Planning Commission Member 3. Dave Chdstoff, Business Community Representative The focus group began its review of the draft revisions of the WDO (first category) on October 29, 2004 and completed its review on December 10, 2004. Legislative Amendment 05-02 Page 1 III. IV. The focus group by consensus made numerous revisions to city staff's draft and the final product is attached to this report as Exhibit "A". A notice of public hearing to be held before'the Planning Commission on January 27, 2005 was published in the Woodbum Independent in compliance with City ordinances. The final draft revisions of the WDO was made available for public review at City Hall. This proposal is being processed as a Type V legislative application that requires the Planning Commission to make a recommendation on the proposed WDO revisions to the City Council. The City Council is the final decision maker. RELEVANT APPROVAL CRITERIA: Woodburn Development Ordinance Section 1.101.08 Annual Review of the WDO Woodbum Comprehensive Plan Chapter IX. Goals and Policies ANALYSIS: The Woodbum Development Ordinance was adopted by the City Council in. July 2002. The WDO was an entirely new code from the previous City codes. It was intended that after the ordinance was implemented, minor revisions would need to be made in regard to policy changes, clarifications, and grammatical and typographical errors. Thus, a process was included in Section 1.101.08 of the WDO for an annual review of the WDO. The proposed revisions to the WDO, listed in detail in Exhibit "A," were generated as part of the annual review of the WDO process. Substantive revisions to the WDO are summarized as follows: 1. Add a process for the revocation or modification of a permit. 2. Allow non-conforming single family dwellings in all zones to be rebuilt if destroyed to allow for homeowners to refinance their homes. 3. Amend the code so that a change or expansion of an existing use triggers the wall and refuse facilities requirements in the code. Legislative Amendment 05-02 Amend 10t coverage in the Retirement Community Single Family Residential (RIS) Zone to allow a maximum of 40% for lots containing a primary building with an average height of 14 feet or less, and a maximum of 35% for lots with a primary building with an average height of more than 14 feet. This proposed revision to the WDO will allow the RIS Zone to have the same lot coverage standard as the Single Family Residential (RS) Zone. Page 2 Allow for exceptions to the front yard setback for small structures (i.e. - trellis, arbor, pergola and archway). 6. Update Manufactured Dwelling Park standards to make them consistent with state law. Revise the Medium Density Residential (RM) Zone so that the single family dwelling setback standards in the RS zone apply to single family dwellings in the RM zone. J Move the provision in the commercial zones that the maximum yard abutting a street shall be 150 feet to the architectural guidelines section of the WDO where this provision would be a "should.' The above stated revision would allow staff more flexibility in applying the 150 foot maximum yard setback based on the size and shape of a commercial lot and the existing buildings on a commercial site. Allow the initial required height of a fence on the side lot line abutting a street to be increased from 3 ~ feet to 4 feet at the side property line adjacent to the street to allow for more privacy and security. 10. Remove the requirement that property line adjustments be subject to the access permit requirement and link the access section to the street section of the WDO. Two decisions (Court of Appeals and LUBA) were made where it was found that the nexus did not exist between a street improvement and a property line adjustment. Also, there is currently not a link in the access section to the street section of the WDO. 11 · Reduce the required by-pass lane width for a drive-through from 12 feet to 8 feet· A 24 foot wide drive-through and by-pass lane is wider than what is necessary. It is difficult for an applicant to meet the 24 foot wide drive-through and by-pass lane requirement on a commercial infill site. 12. Require at least 2 public street accesses for residential subdivisions with 25 or more lots. The WDO is somewhat unclear in regard to the City's ability to condition 2 public street accesses. Several subdivision applications have been processed where it was determined by the City that 2 public street accesses were necessary. '13. Require the paving of a driveway and parking for a detached garage. The paving of a driveway and parking for an attached garage is required in Section 3.104.05.B and C of the WDO. Requiring the paving of a driveway and parking for a detached garage is consistent with the above stated standard in Legislative Amendment 05-02 Page 3 the WDO. 14.Provide a 12 foot minimum and 20 foot maximum one-way commercial and industrial driveway width standard. A one-way commercial and industrial driveway width standard was not included in the WDO. Many commercial and industrial developments have wanted to provide a one-way driveway and had no standard in the code to follow. 15. Change the compact parking stall width from 9 feet to 7.5 feet to match the 7.5 foot curb length for a 90 degree aisle. The compact parking stall width needs to be changed to accurately reflect a compact parking stall width. 16. Remove the non-habitable spaces in single family dwellings from the window calculation requirement. It is very difficult for the window calculation requirement to be met when non-habitable spaces (i.e - garage and attic) in single family dwellings are counted in the window calculation requirement. 17. Revise Section 4.102 of the WDO in regard to appeals to make it consistent with state law. 18. Remove the code language that expansions adding less than 10% gross floor area trigger an administrative Type II design review request. Structures have to be less than 1,000 square feet to trigger an administrative Type II design review request. 19. Revise code to allow parking in a required setback adjacent to a wall. Landscaping is already required in the front yard setback of the RM, CO, CG, IP, IL and PISP zones to help screen cars on the front of sites that are parked perpendicular to a wall. Section 3.106.03.A.2.b.2 requires that all parking areas abutting a street shall provide a 42 inch vertical visual screen from the abutting street grade. Acceptable design techniques to provide the screening include plant materials; berms; free standing, architectural walls with an anti- graffiti finish; and depressed grade for the parking area. All screening shall comply with the vision standards of Section 3.103.10 of the WDO. 20. Revise use of "certify" related to review of Planned Unit Development Final Plan Approval. Need to change "certify" to "review and approve" since "certify" does not accurately reflect the approval process. The proposed revisions to the WDO are consistent with the goals and policies in the Woodbum Comprehensive Plan and no changes are proposed that require an amendment to the Comprehensive Plan because the proposed revisions are relatively minor. Legislative Amendment 05-02 Page 4 VII. RECOMMENDATION: Staff recommends that the Planning Commission direct staff to prepare a final order recommending that the City Council adopt the draft revisions to the Woodbum Development Ordinance. ATTACHMENTS: Exhibit'A' - Woodbum Development Ordinance Update (Measure 56 not Requfied), Dated January 19, 2005 Legislative Amendment 05-02 Page 5 ATTACHt4ENT C WOODBURN PLANNING COMMISSION MEETING MINUTES January 27, 2005 CONVENED The Planning Commission met in a regular session at 7:00 p.m. in City Hall Council Chambers with Chairperson Lima presiding. ROLL CALL Chairperson Lima P Commissioner Vancil A Commissioner Grigorleff P Vice Chairperson Bandelow P Commissioner Hutchison P Staff Present: Jim Mulder, Community Development Director Chairperson Lima provided an opening statement for Public Hearing. Staff introduced the new Planning Commissioner Brad Hutchison. Commissioner Hutchison stated he has lived in Woodburn for 5 years and was in the construction industry for 12 years. He then went back to school and obtained a degree and now works in Portland. He indicated he migrated out of Portland back in to a small area and enjoys his time in Woodburn. The Commissioners welcomed Commissioner Hutchison. MINUTES A._=. Woodburn Planning Commission Minutes of January 13,2005 Vice Chairperson Bandelow pointed out Commissioner Knoles is listed as making a motion when he was not present at that meeting. Chair_oerson Bandelow moved to accept the minutes with the noted correction. Commissioner Gri,qorieff seconded the motion, which unanimously carried. BUSINESS FROM THE AUDIENCE None COMMUNICATIONS Woodburn City Council Work Session Minutes of December 6, 20_n~. B_~. Woodburn City Council Minutes of December 13, 2004 PUBLIC HEARING A-- Planned Unit Development 04.05 and Variance 04-31, request to modify Links at Tukwih PUD Phase III to allow 15 ft. rear yard setback, RenaL~_~=_nce Development, applicant EXPARTE CONTACTS Vice Chairoerson Bandelow reported she is familiar with the development and has sold property there in the past. Staff read the applicable ORS Statement and provided a presentation as reflected in the Staff Report. Staff recommended approval of the variance and the modification to the PUD. Planning Commission Meeting - January 27, 2005 Page 1 of 5 TESTIMONY BY THE APPLICANT Michael Robinson, 1120 NW Couch St. 10th Floor, Portland, OR 97209-4128 stated he is a land use attorney representing Renaissance Development. He indicated he agreed with the Staff Report and findings. Mr. Robinson made reference to a map and pointed out Phases 3, 4 and 5 and mentioned all of them abut the golf course fairways just like the variances they received in Phases 1 and 2 as well as for the Phases in Ironwood at Tukwila. There are no adjacent neighbors and the lots are fairly shallow at 100 feet or less with the exception of the larger lots. He commented the problem with the larger lots is that they are oddly shaped because of the need to place the street at a particular location relative to the fairway. Mr. Robinson said they are only asking for variances for 20 percent of the lots, which are a total of 9 out of 16 in Phases 3, 10 out of 76 in Phases 4 and 5 for a total of 19 lots out of 92. This is to accommodate the same type of dwellings, footprints and size they have been developing in Phases 1 and 2. Mr. Robinson further commented they agreed with Staff's analysis of the application that they submitted as it addresses the criteria and they have asked for the minimum variance necessary to achieve their goals to have the same kind of product consistent with the prior development. Randy Sebastian, Renaissance Development, 16771 Boones Ferry Rd., Lake Oswego. 97035 he reported back in 1998-1999 when they were going through the approval for Phases 1 and 2, the road and fairway configuration required 95 ft. deep lots. He explained you can only build functional houses so small until they become unfunctional and pointed out there is really no way in 40 ft. wide to make them 55 ft. deep. Mr. Sebastian said people are not maintaining huge yards in the 15 ft. and the owners have been fine with that. Furthermore, that was on virtually all the lots on Phases I and 2 and again they are only 20 percent on Phases 4 and 5. In closing, Mr. Sebastian indicated he appreciated the Commission's flexibility and attention. TESTIMONY BY PROPONENT Chuck Greflory, W & H Pacific, 9755 SW Barnes Rd. Suite 300, Portland, OR 97225 added the Ironwood subdivision adjacent and across the golf course was granted a variance for a reduction in the rear yard setback and that reduction was down to 10 ft. and on the limited lots they are only asking for a reduction to 15ft. TESTIMONY BY OPPONENT None DISCUSSION Chairperson Lima closed the public hearing and opened up for discussion among the Commission. Vice Chairperson Bandelow provided a brief history of the various variances granted in the past for Renaissance development for the benefit of Commissioner Hutchison. She further commented as far as she was concerned she saw no reason not to grant the variances at this point. Commissioner Hutchison stated he was aware of the previous variances obtained in the prior two phases. Commissioner Gri§orieff saw no problems with the request. Chairperson Lima thought this was a straight forward application and he had no issues with it. Vice Chairperson Bandelow moved to approved Planned Unit Development 04-05 and Variance 04-31 and instructed Staff return with a Final Order with facts and findings. Commissioner Gri.qorieff seconded the motion. Motion unanimously carried. ' B_~. Planned Unit Development 04-06 and Variance 04-32, reauest to modify_ Links at Tukwil 1 PUD Phases IV and V to allow 15 ft. rear yard setback, Renaissance Development applicant. EXPARTE CONTACTS None Page 2 of 5 Planning Commission Meeting - January 27, 2005 The applicable ORS Statement was read and a presentation was provided by Staff as reflected in the Staff Report. He reported this is essentially the same request as the previous application that the Commission just acted upon although this applies to Phases 4 and 5 of the Links at Tukwila. Approval was recommended by Staff of the reduction of the rear yard setback on the named lots. TESTIMONY BY THE APPLICANT Michael Robinson, 1120 NW Couch St. 10t~ Floor, Portland, OR 97209-4128 incorporated testimony by reference from the prior matter and asked the Commission approve the application consistent with the Staff recommendation. TESTIMONY BY PROPONENT None TESTIMONY BY OPPONENT None DISCUSSION The public hearing was closed by Chairperson Lima and opened to COmmission discussion. Vice Chairperson Bandelow made a motion to approved Planned Unit Development 04-06 and Variance 04-32 for Phases 4 and 5 of the Links at Tukwila and instructed Staff return with a final order and facts and findings to support that order. Motion was seconded by Commissioner Grigorieff, which carried unanimously. C__~. Legislative Amendment 05-02, City-initiated proposal to amend the Woodburn Development Ordinance. Staff indicated there was no need to read the ORS Statement because this is a Type 5 Legislative action and not a quasi-judicial land use action and is therefore not subject to the same rules. He reported this is a proposal initiated by City Council to revise the text of the Woodburn Oevelopment Ordinance. As with anything that is new, it had not been tried and exercised in a way to work out all the bugs. It was anticipated in the Development Ordinance that the Council should consider amending it on an annual basis based on any new legislation, scrivner errors that are discovered, any changes in policies or just through the application of the code where situations would arise where it just seemed like the code did not really apply correctly in certain situations. He further reported based on that each year Staff goes forward to the Council and recommends certain changes that should be made and the Council would then be able to supplement that as they desire. As of November of 2004, the Council did initiate a list of issues to be addressed by Staff in potentially updating the code. He further stated the list has been broken down in to two different sections, those with issues that require Measure 56 Notice and those that would not require Measure 56 Notice. Staff indicated the items before the Commission tonight are not items that affect someone's permissible uses of their property directly. Staff reported the Mayor appointed a focus group that consisted of former Planning Commissioner Knoles, Councilor Cox and a representative of the community at large, Dave Christoff. Moreover, what is before the Commission tonight is what came out of the focus group as far as what they agreed to as to what should go forward. He further indicated the Commission would be making a recommendation on the proposed changes to the City Council and the Council would provide final approval and adopt an ordinance implementing them. Staff recommended that the Planning Commission direct Staff to prepare a Final Order to recommend that the City Council adopt the draft revisions. He explained the focus group draft would go forward to the Council as well as the Planning Commission Final Order, which would contain any proposed changes that the Commission recommends that the Council consider to the focus group draft. Vice Chairperson Bandelow questioned whether trellises, arbors and other garden type items were addressed in the original ordinance? Staff responded they were not addressed in the Woodburn Development Ordinance (WDO) but they were Page 3 of 5 Planning Commission Meeting - January 27, 2005 not addressed either in the old Zoning Ordinance. He stated both Ordinances stated that you could not have any structures in the front yard unless they were specifically exempted. None of those items were exempt but yet they are structures and therefore, technically they were not allowed. Staff further explained picket fences or arbors were not allowed if they were taller than the allowable fence height. H® clarified if was not that we had any practical difficulty with this and we have never been presented with a situation where Staff had to go out and enforce the code. However, it is something that was not clear in the code and therefore, we are trying to clarify it now. TESTIMONY BY PROPONENTS None TESTIMONY BY OPPONENTS None DISCUSSION Chairperson Lima closed the public hearing and opened for discussion among the Commissioners. Vice Chairperson Bandelow asked Staff if we have been calculating non-habitable spaces in the window calculation in the past? Staff replied that was one of the first glitches found in the Ordinance. He indicated architectural standards for single family were not included in the previous code. Staff explained the code provisions stated the fac,.ade of the house, Which would mean any wall area whether that bea wall area as part of the garage or under the peak of the roof of the garage. That penalized you for having a higher pitched roof because that gave you more surface area, which meant you would have to have more window and would force you in to a variance. He further reported they tried to remove that from the definition of the fa(~ade taking out the garage and any area that is underneath the peak under a gable roof, essentially looking at habitable wall areas. Chairperson Lima requested clarification regarding Item #18 and questioned if the 1,000 sq. ft. is the size of the addition or the original structure? Staff clarified the original intent was to say you could go through administrative design review if you were less than 1,000 fl. or if you were doing a building addition that was less than ten percent of your existing area. He said the application would be Type II if under 1,000 ft. and Type 3 if over 1,000 ft. Vice Chairperson Bandelow made a motion to direct Staff to prepare a Final Order recommending that the City Council adopt the draft revisions to the Woodburn Development Ordinance. Commissioner Grigodeff seconded the motion, which unanimously carried. ITEMS FOR ACTION A__~. Final Order for Zone Change 04-04, request to change zoning from Sinale Family Residential (RS) to Medium Density Residential (RM} at 2325 N. Boones Ferry Road, Tony Krietzber;h aDolicant. Vice Chairperson Bandelow moved to adopt the Final Order. Commissioner Grigorieff seconded the motion. Motion carded unanimously. DISCUSSION ITEMS Staff reminded the Commission of the Special Planning Commission Meeting on February 3rd on the 2005 Comprehensive Plan Update - Periodic Review and Urban Growth Boundary Amendments. Staff informed the Commission there were two pages missing (Section 2.1 ) from the Proposed Revisions to the Woodburn Development Ordinance (copies were provided). REPORTS None Page 4 of 5 Planning Commission Meeting - January 27, 2005 BUSINESS FROM THE COMMISSION None ADJOURNMENT Vice Chairoerson Bandelow moved to adjourn the meeting. Commissioner Grigorieff seconded the motion, which carried unanimously. Meeting adjourned at 8:00 pm. APPROVED - CLAUDIO LIMA, CHAIRPERSON DATE ATTEST Jim ly~u~ler, Cor~m_.unity Development Director Cit~of Woodburn, Oregon Date Planning Commission Meeting - January 27, 2005 Page 5 of 5 COUNCIL BILL NO. ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE 2312 {THE WOODBURN NOISE ORDINANCE) TO REDUCE CERTAIN DECIBEL LEVELS AND DECLARING AN EMERGENCY WHEREAS, on September 13, 2004, the Council received public comment from citizens concerned about noise issues; and WHEREAS, the Council referred the matter to the Woodburn Livability Task Force to conduct a public discussion on the City's Noise Ordinance; and WHEREAS, the Woodburn Livability Task Force sent a meeting notice to concerned citizens and published the notice in the paper, conducted a meeting and received oral and written testimony from the public, consulted with City staff, and prepared recommendations that ,were presented to Council on January 24, 2005; and WHEREAS, the Council directed staff to prepare an ordinance amending the Noise Ordinance to reflect the recommendations of the Woodburn Livability Task Force; and WHEREAS, the revisions to the Noise Ordinance are expected to improve enforcement issues, and are believed to better reflect the border line between acceptable and unacceptable noise levels in the community: NOW, THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. Section 6A of Ordinance 2312 is amended to read as follows: A. It shall be unlawful for any person to produce or permit to be produced, with any sound producing device which when measured at or within the boundary of the property on which a noise sensitive unit is located which is not the source of the sound, which sound exceeds the following levels: (1) 55 dBA at any time be'rween 9:00 p.m. and 7:00 a.m. of the following day where the property receiving the noise has a residential zoning designation. 65 dBA at any time between 7:00 a.m. and 9:00 p.m. of the the noise has a residential zoning (2) same day where the property receiving designation. Page 1 - COUNCIL BILL NO. ORDINANCE NO. (3) 60 dBA at any time between 9:00 p.m. and 7:00 a.m. of the following day where the property receiving the noise has a zoning designation which is not residential. (4) 75 dBA at any time between 7:00 a.m. and 9:00 p.m. of the same day where the property receiving the noise has zoning designation which is not residential. Section 2. Emer_aencv Clause. This ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist and this ordinance shall take effect immediately upon passage by the Council and approval by the Mayor. Approved as to form: City Attorney Date Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Map,/' Tennant City Recorder City of Woodburn, Oregon Page 2- COUNCIL BILL NO. ORDINANCE NO. 4."/ WOODBURN February 28, 2005 TO: FROM: SUBJECT: Honorable Mayor and City Council N. Robert Shields, City Attorney I~ ~' Public Contracting Ordinance Summary MINOR ORDINANCE MODIFICATIONS: The first three pages of the original ordinance have been modified slightly (copy attached) since it was included in the Council packet. The changed language clarifies that the Council's intent is to adopt the Attorney General's Model Rules except as they are modified or supplemented by the ordinance. Also, Section 5 was re-captioned to more accurately reflect its content. ORDINANCE SUMMARY: · The City Council is designated as the "Local Contract Review Board" under the new statute. (Section 2.) · The City Administrator, or designee, is designated as the "Contracting Agency" under the new statute. (Section 3.) · The Attorney General's Model Rules are adopted except as modified by the ordinance. (Section 4.} The City Administrator has contracting authority up to $75,000. The Local Contract Review Board has authority for amounts that exceed $75,000. (Section 5.) All public contracts are subject to formal competitive selection procedures except that certain classes of public contracts are exempt from these procedures. The key exemptions are: (1) Emergency contracts; (2) Sole source contracts; (3) Contracts for goods and services of $5000 or less, which can be awarded by the City Administrator by direct selection; (4) Contracts for goods and services from $5000 to $75,000, which can be awarded by the City Administrator on a written Agenda Item Review: City Administrator ~ City Attorney ~ Finance__ Honorable Mayor and City Council February 28, 2005 Page 2 record of three quotes; (5) Public Improvement Contracts for a single project, not involving transportation, from $5000 to $75,000 on a written record, with findings, based on three quotes; and (6) Public Improvement Contracts for a single project, involving transportation, from $5000 to $50, 000 on a written record, with findings, based on three quotes. (Section 6.) The City Administrator has the authority to dispose or surplus and abandoned property valued at more than $10,000. (Section 8.) "Personal Services Contract" is defined broadly, but excludes a contract with an architect, engineer or a land surveyor, which is subject to state law. (Sections lC and 9.) Personal Service Contract procedures are specified by the ordinance. Contracts of $5000 or less require just a purchase order. For contracts from $5000 to $75,000, at least three written quotes are solicited. For contracts exceeding $75,000, the "formal" competitive procedure found in the Model Rules is used. (Section 10.) Personal Service Contracts of $75,000 or less, and cedain other types of these contracts, are exempt from the "formal" competitive procedure. (Section 11 .) The criteria for the evaluation and selection of a contractor under a Personal Services Contract are specified. Price is one factor but is not determinative. (Section 13.) An emergency is declared and the ordinance takes effect immediately for the reason that the Oregon Contracting Code is effective on March 1, 2005. (Section 14.) COUNCIL BILL NO. ORDINANCE NO. AN ORDINANCE ADOPTING RULES FOR PUBLIC CONTRACTING; ESTABLISHING CERTAIN CONTRACT CLASS EXEMPTIONS; PROVIDING PROCEDURES FOR PERSONAL SERVICE CONTRACTS; AND DECLARING AN EMERGENCY. WHEREAS, it is the policy of the City of Woodburn that a sound and responsive public contracting system should allow impadial, meaningful, and open competition, preserving formal competitive selection as the standard for public contracts unless otherwise specifically exempted herein, by state law, or by subsequent ordinance or resolution; and WHEREAS, the Oregon Legislature adopted HB 2341 (2003 Oregon Laws, Chapter 794) the ("the Oregon Public Contracting Code"), which has an effective date of March 1, 2005. ORS Chapter 279 is repealed (with minor exceptions) and replaced with three new subchapters: ORS 279A, 279B, and 279C; and WHEREAS, all rules and exemptions adopted pursuant to ORS chapter 279 will expire March 1, ~2005; and WHEREAS, absent any action by its Local Contract Review Board, the City of Woodburn will be subject to the Model Rules adopted by the Attorney General under ORS subchapters 279A, 279B, and 279C {the "Model Rules"), which include Divisions 46, 47, 48, and 49 in the Attorney General's Public Contracts Manual; and WHEREAS, the Local Contract Review Board may adopt rules, for public contracting not covered by the Model Rules but these lacal rules can nat conflict with the Oregon Public Contracting Code; and WHEREAS, the Oregon Public Contracting Code divides powers and duties for contracting into two categories: those that must be performed by the "Local Contract Review Board"; and those that must be performed by the "Contracting Agency"; and PAGE 1 - COUNCIL BILL NO. ORDINANCE NO. WHEREAS, the Local Contract Review Board may establish certain contract class exemptions; and WHEREAS, the Local Contract Review Board finds that the contract class exemptions established herein will not encourage favoritism or substantially diminish competition and that they will result in substantial cost savings; and WHEREAS, the Local Contract Review Board may designate certain personal service contracts which are not subject to the rules of the Oregon Public Contracting Code or the Model Rules; NOW, THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. Definitions,,. A. "Formal competitive selection procedures" means procedures for public contracting as required by ORS 279B.050(1) (competitive sealed bids or competitive sealed proposals for goods and services}, or ORS 279C.335(1) (competitive bids for public improvements) or, for personal service contracts, the same formal procedures required for the selection of goods and services pursuant to ORS 279B.060 (competitive sealed proposals). B. "Formal competitive selection process" means the process of using formal competitive selection procedures for the procurement of goods and services or for public improvements contracts. C. "Personal service contracts" include contracts for services that require specialized technical, artistic, creative, professional or communication skills ar talent, unique and specialized knowledge, or the exercise of discretionary judgment skills, and for which the service depends on attributes that are unique to the service provider, other than contracts for an architect, engineer, land surveyor or provider of related services as defined in ORS 279C.100. Section 2. Local Contract Review Board... The City Council of the City of Woodburn is designated as the Local Contract Review Board under the Oregon Public Contracting Code. The Local Contract Review Board may delegate its PAGE 2- COUNCIL BILL NO. ORDINANCE NO. powers and responsibilities consistent with the Oregon Public Contracting Code, the Model Rules, and the Woodburn City Charter and ordinances. Section3. Contracting Aaency. The City designee is designated os the City's "Contracting contracting powers and duties assigned to the "Contracting Agency.'" Administrator or his/her Agency" for purposes of City of Woodbum as a Section 4. Model Rules. herein, or by subsequent ordinance or resolution, the Model Rules, Divisions 46, 47, 48 and 49, adopted by the Attorney General under ORS 279A, 279B, and 279C, os they now exist, and os they may be amended in the future, ore hereby adopted os the City's public contracting rules. Words and phrases used by these rules that ore defined in ORS subchopters 279A, 279B, and 279C and in the Model Rules, have the same meaning os defined in ORS subchapters 279A, 279B, and 279C and the Model Rules. Section 5. ~3~. Administrative staff and departments have contracting authority and responsibilities as follows: A. The City Administrator is authorized to: 1. Enter into city contracts not to exceed $75,000 without additional authorization of the Local Contract Review Board. Contracts exceeding $75,000 for public improvements, identified in a Capital Improvement Plan, that have been approved by the City Council through the budgetary process, shall be deemed to be approved by the Local Contract Review Board. 2. Recommend that the Local Contract Review Baard approve or disapprove contract awards in excess of $75,000, or to change orders or amendments to contracts of more than $75,000. 3. Adopt forms, computer software, procedures, and administrative policies for all City purchases consistent with the Woodburn City Chader and ordinances. B. All contracting by departments shall conform to approved City purchasing procedures adopted by the City Administrator ar the Local Contract Review Board. C. Each depadment shall plan purchase requirements sufficiently in advance so that orders can be placed in economical quantities. PAGE 3- COUNCIL BILL NO. ORDINANCE NO. WOODBUI -N liB February 24, 2005 TO: FROM: SUBJECT: Honorable Mayor and City Council N. Robert Shields, City Attorney Public Contracting Ordinance RECOMMENDATION: Adopt the attached public contracting ordinance in compliance with the Oregon Public Contracting Code. BACKGROUND AND DISCUSSION: The new Oregon Public Contracting Code (ORS Chapters 279A, 279B, and 279C) becomes effective March 1, 2005. Generally, the code requires the City to adopt procedures or be sub]ed to the Model Rules. However, there are certain "gaps" in the Model Rules and, for this reason, it is in the City's interest to pass an ordinance. Specifically, the Model Rules do not: 1. create classes of contracts that are exempt from the general requirements for competitive bids and proposals, 2. provide procedures for the screening and selection of personal service contracts, 3. address delegation of authority for decision making activities that the statutes assign to the "Contracting Agency" or 4. provide procedures for the disposal of abandoned or surplus property. The ordinance provides rules for public contracts and creates classes of contracts that are exempt from the formal competitive selection process, such as contracts not exceeding $5,000, emergency contracts, and sole-source confracts. If establishes necessary procedures for personal service contracts that include contracts for services other than architectural, engineering, and land surveying. Agenda item Review: City Administrator City Attorney 48 Honorable Mayor and City Council February 24, 2005 Page 2 The ordinance contains an emergency clause so that it will be in force on March 1, 2005, when the new state law goes into effect. The failure to include this emergency clause would result in a 30-day period where contracts under $5,000 would have to be competitively bid and there would be no procedures in effect for personal services contracts. FINANCIAL IMPACT: Unknown at the present time. COUNCIL BILL NO. ORDINANCE NO. AN ORDINANCE ADOPTING RULES FOR PUBLIC CONTRACTING; ESTABLISHING CERTAIN CONTRACT CLASS EXEMPTIONS; PROVIDING PROCEDURES FOR PERSONAL SERVICE CONTRACTS; AND DECLARING AN EMERGENCY. WHEREAS, it is the policy of the City of Woodburn that a sound and responsive public contracting system should allow impartial, meaningful, and open competition, preserving formal competitive selection as the standard for public contracts unless otherwise specifically exempted herein, by state law, or by subsequent ordinance or resolution; and WHEREAS, the Oregon Legislature adopted HB 2341 (2003 Oregon Laws, Chapter 794) the ("the Oregon Public Contracting Code"), which has an effective date of March 1, 2005. ORS Chapter 279 is repealed (with minor exceptions) and replaced with three new subchapters: ORS 279A, 279B, and 279C; and WHEREAS, all rules and exemptions adopted pursuant to ORS chapter 279 will expire March 1,2005; and WHEREAS, absent any action by its Local Contract Review Board, the City of Woodburn will be subject to the Model Rules adopted by the Attorney General under ORS subchapters 279A, 279B, and 279C (the "Model Rules"), which include Divisions 46, 47, 48, and 49 in the Attorney General's Public Contracts Manual; and WHEREAS, in order to adopt new public contracting rules that differ from the Model Rules, the City Council must specifically state that the Model Rules adopted by the Attorney General do not apply, and must adopt its own rules; and WHEREAS, the Local Contract Review Board may adopt rules for public contracting not covered by the Model Rules but these local rules can not conflict with the Oregon Public Contracting Code; and WHEREAS, the Oregon Public Contracting Code divides powers and duties for contracting into two categories: those that must be performed by the "Local Contract Review Board"; and those that must be performed by the "Contracting Agency"; and PAGE 1 - COUNCIL BILL NO. ORDINANCE NO. 50 WHEREAS, the Local Contract Review Board may establish certain contract class exemptions; and WHEREAS, the Local Contract Review Board finds that the contract class exemptions established herein witl not encourage favoritism or substantially diminish competition and that they will result in substantial cost savings: and WHEREAS, the Local Contract Review Board may designate certain personal service contracts which are not subject to the rules of the Oregon Public Contracting Code or the Model Rules: NOW, THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. Deflnitions~ A. "Formal competitive selection procedures" means procedures for public contracting as required by ORS 279B.050(1) (competitive sealed bids or competitive sealed proposals for goods and services), or ORS 279C.335(1) (competitive bids for public improvements) or, for personal service contracts, the same formal procedures required for the selection of goods and services pursuant to ORS 279B.060 (competitive sealed proposals). B. "Formal competitive selection process" means the process of using formal competitive selection procedures for the procurement of goods and services or for public improvements contracts. C. "Personal service cOntracts'` include contracts for services that require specialized technical, artistic, creative, professional or communication skills or talent, unique and specialized knowledge, or the exercise of discretionary judgment skills, and for which the service depends on attributes that are unique to the service provider, other than contracts for an architect, engineer, land surveyor or provider of related services as defined in ORS 279C. 100. Section 2. Public Contractina Rules. The following rules are adopted as the city's public contracting rules. As provided by ORS 279A.065(5)(a), the Model Rules adopted by the Attorney General under ORS 279A, 279B, and 279C (the "Model Rules") do not apply, unless otherwise provided for herein or as adopted by ordinance or resolution by the Local Contract Review Board. Section 3. Local Contract Review Board. The City Council of the City of Woodbum is designated as the Local Contract Review Board under the Oregon Public Contracting Code. The Local Contract Review Board may delegate its PAGE 2- COUNCIL BILL NO. ORDINANCE NO. powers and responsibilities consistent with the Oregon Public Contracting Code, the Model Rules, and the Woodburn City Charter and ordinances. Section4. Contracting Aaencv. The City designee is designated as the City's "Contracting contracting powers and duties assigned to the "Contracting Agency." Administrator or his/her Agency" for purposes of City of Woodburn as a SectionS. Model Rules. Unless expressly provided herein, or by subsequent ordinance or resolution, the Model Rules, Divisions 46, 47, 48 and 49, adopted by the Attorney General under ORS 279A, 279B, and 279C, as they now exist, and as they may be amended in the future, are hereby adopted as the City's public contracting rules. Words and phrases used by these rules that are defined in ORS subchapters 279A, 279B, and 279C and in the Model Rules, have the same meaning as defined in ORS subchapters 279A, 279B, and 279C and the Model Rules. Section 6. Formal Competitive Selection Procedures. Administrative staff and departments have contracting authority and responsibilities as follows: A. The City Administrator is authorized to: 1. Enter into city contracts not to exceed $75,000 without additional authorization of the Local Contract Review Board. Contracts exceeding $75,000 for public improvements, identified in a Capital Improvement Plan, that have been approved by the City Council through the budgetary process, shall be deemed to be approved by the Local Contract Review Board. 2. Recommend that the Local Contract Review Board approve or disapprove contract awards in excess of $75,000, or to change orders or amendments to contracts of more than $75,000. 3. Adopt forms, computer software, procedures, and administrative policies for all City purchases consistent with the Woodburn City Charter and ordinances. B. All contracting by departments shall conform to approved City purchasing procedures adopted by the City Administrator or the Local Contract Review Board. C. Each department shall plan purchase requirements sufficiently in advance so that orders can be placed in economical quantities. PAGE 3- COUNCIL BILL NO. ORDINANCE NO. D. The City Administrator shall process requisition forms and negotiate purchases on the most favorable terms in accordance with adopted ordinances, state laws (including the Oregon Public Contracting Code), policies and procedures. Section7. Formal Competitive Selection Procedures-Exemptions. All public contracts shall be based upon formal competitive selection requirements of ORS 279B.050(1) or ORS 279C.335(1), except as expressly provided in this subsection, or by subsequent ordinance or resolution. The following classes of public contracts are hereby exempted from the formal competitive selection requirements of ORS 279B.050(1) and ORS 279C.335(1): A. Any contract exempted by the State of Oregon Public Contracting Code or Model Rules; B. Any contract expressly exempted from formal competitive selection procedures adopted by ordinance or resolution of the Local Contract Review Board pursuant to ORS 279B.085; C. Purchases through federal programs pursuant to ORS 279A.180; D. In the event of an emergency involving an immediate hazard to the public health, safety, or welfare, the City Administrator, Finance Director, Public Works Director, or Chief of Police may secure necessary goods and/or services without a formal competitive selection process, provided that the Local Contract Review Board, at a regularly scheduled meeting within 30 days of the procurement, is furnished with a full report of the circumstances and costs of the materials and/or services secured; E. Contracts for goods or services, or a class of goods or services, which are available from only one source. To the extent reasonably practical, the City Administrator shall negotiate with the sole source to obtain contract terms advantageous to the City. Sole source contracts for goods or services, or classes of goods or services, which are available from only one source which exceed $5,000, but do not exceed $75,000, must be approved by the City Administrator. Sole source contracts for goods or services, or classes of goods or services, which are available from only one source which exceed $75,000 must be approved by the Local Contract Review Board. The determination of a sole source must be based on written findings that may include: 1. That the efficient utilization of existing goods requires the acquisition of compatible goods or services; PAGE 4- COUNCIL BILL NO. ORDINANCE NO. 2. That the goods or services required for the exchange of software or data with other public or private agencies are available from only one source; 3. That the goods or services are for use in a pilot or experimental project; 4. Other findings that support the conclusion that the goods or services are available from only one source; or 5. Sole source contracts for goods or services, or classes of goods or services, which are available from only one source which exceed $5,000, but do not exceed $75,000, must be approved by the City Administrator. Sole source contracts for goods or services, or classes of goods or services, which are available from only one source which exceed $75,000 must be approved by the Local Contract Review Board; F. Contracts for products, services or supplies if the value of the contract does not exceed $5,000. Any procurement of goods or services not exceeding $5,000 per item may be awarded in any manner deemed practical or convenient by the City Administrator, including by direct selection or award. A contract awarded under this section may be amended to exceed $5,000 only upon approval of the City Administrator and in no case may exceed $6,000. A procurement may not be artificially divided or fragmented so as to constitute a small procurement under this selection; G. Contracts for the purchase of copyrighted materials where there is only one supplier available within a reasonable purchase area for such goods; H. Contracts for the purchase of advertising, including that intended for the purpose of giving public or legal notice; I. Contracts for the prOCurement of banking services; J. Contracts for the purchase of services, equipment or supplies for maintenance, repair or conversion of existing equipment if required for efficient utilization of such equipment; K. Contracts for the purpose of investment of public funds or the borrowing of funds; PAGE 5- COUNCIL BILL NO. ORDINANCE NO. L. Contracts for the purchase of goods or services where the rate or price for the goods or services being purchased is established by federal, state or local regulating authority: M. Contracts not to exceed $75,000 for the purchase of goods, materials, supplies and services. For contracts for the purchase of goods, materials, supplies and services that are more than $5,000, but that do not exceed $75,000, a minimum of three competitive written quotes shall be obtained. The City Administrator shall keep a written record of the source and amount of quotes received. If three quotes are not available, a lesser number will suffice, provided that a written record is made of the effort to obtain the quotes; N. Contracts not to exceed $75,000 for public improvements, including contracts for services of architects, engineers, land surveyors and related services, (other than contracts for a highway, bridge or other transportation projects), if the following conditions are met: 1. The contract is for a single project and is not a component of or related to any other project; 2. When the amount of the public improvement contract (other than contracts for a highway, bridge or other transportation projects) is more than $5,000, but does not exceed $75,000, a minimum of three competitive written quotes shall be obtained. The City Administrator shall keep a written record of the source and amount of quotes received. If three quotes are not available, a lesser number will suffice, provided that a written record is made of the effort to obtain the quotes; 3. The City Administrator shall award the contract to the prospective contractor whose quote will best serve the interests of the City, taking into account price and other applicable factors, such as experience, specific expertise, availability, project understanding, contractor capacity and contractor responsibility. If the contract is not awarded on basis of lowest price, the City Administrator shall make a written finding of the basis for the award; O. Contracts for a highway, bridge or other transportation pro]ects more than $5,000, but not to exceed $50,000, if the following conditions are complied with: 1. The contract is for a single project and is not a component of or related to any other project; PAGE 6 - COUNCIL BILL NO. ORDINANCE NO. 2. When the amount of the contract for a highway, bridge or other transportation projects is more than $5,000, but does not exceed $50,000, a minimum of three competitive written quotes shall be obtained. The City Administrator shall keep a written record of the source and amount of quotes received. If three quotes are not available, a lesser number will suffice, provided that a written record is made of the effort to obtain the quotes; 3. The City Administrator shall award the contract to the prospective contractor whose quote will best serve the interests of the City, taking into account price and other applicable factors, such as experience, specific expertise, availability, project understanding, contractor capacity and contractor responsibility. If the contract is not awarded on basis of lowest price, the City Administrator shall make a written finding of the basis for the award. Section 8. Notice of Public Contracts. Notice of public improvement contracts or contracts for the purchase of goods or services may be published electronically where the City Administrator finds that such publication is likely to be cost effective as provided in ORS 279C.360. Section 9. Disposal of Surplus and Abandoned Property. The City Administrator shall have the authority to dispose of surplus property and abandoned personal property not owned by the City by any means determined to be in the best interests of the City, including but not limited to, transfer to other departments, government agencies, non-profit organizations, sale, trade, auction, or destruction; provided however, that disposal of personal property having residual value of more than $10,000 shall be subject to authorization by the Local Contract Review Board. Section 10. Personal Service Contracts. Personal service contracts shall be used to retain the services of independent contractors (other than contracts for' an architect, engineer, land surveyor or provider of related services as defined in ORS 279C.100). Nothing in this section shall apply to the employment of regular ci'c~' employees. Section 11. Procedures for Personal Services Contracts. Personal service contracts are subject to the rules established by this section: A. Unless otherwise approved by the City Administrator, all personal service contracts shall require the contractor to defend, indemnify, and hold harmless the City, its officers, agents and employees against and from any and all claims or demands for damages of any kind arising out of or connected in any way with the contractor's performance thereunder and shall include a waiver of contractor's right to ORS 30.285 and ORS 30.287 indemnification and defense. PAGE 7- COUNCIL BILL NO. ORDINANCE NO. B. Unless otherwise approved by the City Administrator, personal service contracts shall contain a provision requiring the person or entity providing the service to obtain and maintain liability insurance coverage in at least the amount of the City's tort liability limits, naming the City as an additional named insured, during the life of the contract. C. All personal service contracts shall contain all contract provisions mandated by state law. These provisions may be incorporated in the personal service contract by reference unless otherwise provided by law. D. The formal competitive selection procedures described in this section may be waived by the City Administrator when an emergency exists that could not have been reasonably foreseen and requires prompt execution of a contract to remedy the situation that there is not sufficient time to permit utilization of the formal competitive selection procedures. E. Personal service contract proposals may be modified or withdrawn at any time prior to the conclusion of discussions with an offeror. F. For personal service contracts that are anticipated to cost $5,000 or less, such contracts must be memorialized by a formal purchase order. G. For personal service contracts that are anticipated to exceed $5,000, but not exceed $75,000, at least three competitive written quotes from prospective contractors who shall appear to have at least minimum qualifications for the proposed assignment, shall be solicited. Each solicited contractor shall be notified in reasonable detail of the proposed assignment. Any or all interested prospective contractors may be interviewed for the assignment by an appropriate City employee or by an interview committee. H. For personal service contracts that are anticipated to cost in excess of $75,000, the department head for the department that needs the services shall make the following determinations: 1. That the services to be acquired are personal services; 2. That a reasonable inquiry has been conducted as to the availability of City personnel to perform the services, and that the City does not have the personnel nor resources to perform the services required under the proposed contract; and PAGE 8- COUNCIL BILL NO. ORDINANCE NO. 3. That the department has developed, and fully plans to implement, a written plan for utilizing such services, which will be included in the contractual statement of work. I. All personal service contracts exceeding $75,000 shall be based upon formal competitive selection procedures, except as expressly provided in this subsection, or by subsequent ordinance or resolution. For personal service contracts that are anticipated to cost in excess of $75,000 per year, the department head for the department that needs the services shall follow the formal competitive selection procedures for formal competitive sealed proposals as found in the Model Rules, OAR 137-047-0260. Section12. Personal Services Contracts - Exemptions from Formal Competitive Selection Procedures. Contracts for personal services are exempt from formal competitive selection procedures if any of the following conditions exist: A. The contract amount is anticipated to be $75,000 or less. B. Contract amendments, which in the aggregate change the original contract price or alters the work to be performed, may be made with the contractor if such change or alternation is less than twenty-perCent (25%) of the initial contract, and are subject to the following conditions: 1. The original contract imposes binding obligation on the parties covering the terms and conditions regarding changes in the work; or 2. The amended contract does not substantially alter the scope or nature of the project. C. The City Administrator finds that there is only one person or entity within a reasonable area that can provide services of the type and quality required. D. The contract for services is subject to selection procedures established by the State or Federal government. E. The contract is for non-routine or non-repetitive type legal services provided by attorneys outside of the City Attorney's Office. Section 13. Personal Services Contracts-Screenin,cl Criterir~. The following criteria shall be considered in the evaluation and selection of a personal service contractor for personal service contracts: PAGE 9- COUNCIL BILL NO. ORDINANCE NO. A. Specialized experience in the type of work to be performed. B. Capacity and capability to perform the work, including any specialized services within the time limitations for the work. C. Educational and professional record, including past record of performance on contracts with governmental agencies and private parties with respect to cost control, quality of work, ability to meet schedules, and contract administration, where applicable. D. Availability to perform the assignment and familiarity with the area in which the specific work is located, including knowledge of designing or techniques peculiar to it, where applicable. E. Cost of the services. F. Any other factors relevant to the particular contract. Section 14. Personal Services Contracts-Selection Process. The following rules shall be followed in selecting a contractor for personal services: A. Personal service contracts less than $5,000 may be awarded in any manner deemed practical including by direct selection or award by the City Administrator (or any person with purchasing authority). A personal service contact awarded under this section may be amended to exceed $5,000 only upon approval of the City Administrator any in no case may exceed $6,000. A personal service contract may not be artificially divided or fragmented. B. For personal service contracts that exceed $5,000, but do not exceed $75,000, the department head for the department that needs the services shall award the contract to the offeror whose quote or proposal will best serve the interests of the City, taking into account the relevant criteria found in this ordinance. The Department Head shall make written findings justifying the basis for the award. C For personal service contracts that will cost $75,000 or more, the City Administrator shall award the contract based upon the formal competitive selection processes found in the Model Rules. The City Administrator shall make written findings justifying the basis of the award. D. The City official conducting the selection of a personal service contact shall negotiate a contract with the best qualified offeror for the required services at a compensation determined in writing to be fair and reasonable. PAGE 10- COUNCIL BILL NO. ORDINANCE NO. Section 15 Declaration of Emer_aency. This ordinance being necessary for the immediate preservation of the public peace, health and safety for the reason that the Oregon Public Contracting Code is effective on March 1, 2005, and this ordinance is needed to implement its provisions, an emergency is declared to exist and this ordinance shall take effect immediately upon passage by the Council and approval by the Mayor. Approved as to form: .F~.r~ ~ City Attorney Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: Mary Tennant City Recorder City of Woodburn, Oregon PAGE 11 - COUNCIL BILL NO. ORDINANCE NO. 60 t~cerl~rated 11C February 22, 2005 TO: FROM: SUBJECT: Mayor and City Council througlT~ity Administrator Ben Gillespie, Finance Directo Supplemental Appropriation for Defibrillator Grant RECOMMENDATION: Council adopt the attached ordinance for a supplemental appropriation. BACKGROUND: In December the Oregon Department of Human Services awarded the City of Woodburn a grant totaling $3,600 (Exhibit A attached) to buy two automated external defibrillators (AED's). The grant was intended for jurisdictions that had acquired AED's under a similar grant in 2003. Those units were found to be defective and the manufacturer has subsequently gone out of business. This grant will allow the City to purchase replacement AED's from another manufacturer. These devices are carried in two police cars and are used to revive victims of heart attack. Police staff has received training on the use of the existing AED's and that knowledge is directly transferable to the replacement units. DISCUSSION: Oregon statutes allow for increasing appropriations to reflect expenditure of new grant funds for a specific purpose FINANCIAL IMPACT: The attache~d ordinance increases appropriations and grant revenue General Fund by $3,600. Contingency is not affected. Agenda Item Review: in the City Attorney Financ OFe-gon EXHIBIT A Department of Human Services Theodore R, Kulongoski, Governor December 22, 2004 Health Services 800 NE Oregon Street Portland, OR 97232-2162 (503) 731-4030 - Emergency (503) 731-4011 ext 629 (503) 731-4077 - FAX (503) 7312 4031 - TTY-Nonvoice INTEP~ET: RAELENE.JARVIS~STATE.OR.US Steve Newport City of Woodbum Police Departrnent 270 Montgomery Woodbum, OR 97071 Dear City of Woodbum Police Department, Applications from first responder agencies (Law Enforcement, Emergency Medical Services, and Fire Departments) in a rural county or in the qualifying zip code of a non-rural county meeting eligibility criteria were prioritized for awards based on location and population, access to the device 24/7, average age of the population served, counties or regions receiving previous awards, and AEDs already present in the community. Your agency has been awarded funds from the 2004 Rural Access to Emergency Devices Grant Program. This grant provides reimbursed fi~_nding for the purchase of automated external defibrillators (AEDs) placed with rural first responder agencies, and for CPR and AED training. The award amount is a maximum of $1,800 per AED unit awarded. The specific details of the grant awarded to your agency are on the enclosed page. The documentation required to process your request for reimbursement following the purchase of your AED and cornpletion of training are enclosed. An AED reporting form is also included. We have enclosed special pricing structures offered by regional AED vendors. Your agency makes the final decision regarding the brand and model of AED that best meets your needs. Please contact the vendor of your choice directly. Expectations of 2004 RAED Grant recipients for compliance with the federal HRSA grant requirements are enclosed. Please review them carefully. "Assisting People to Become Independent, Healthy and Safe" An Equal Opportunity Employer 62 Please feel free to contact Kris Hampton or myself at 503-731-4011 with any questions you may have. Thank you for all your efforts to improve the health of rural Oregonians. Sincerely, Trauma Coordinator EMS and Trauma Systems Section t53 EMS & Trauma Systems Department of Human Services 2004 Rural Access to Emergency Devices Oregon Grant Program City of Woodbum Police Department Steve Newport 270 Montgomery Woodburn, OR 97071 Number of AEDs Awarded: 2 Maximum Monetary award for all AEDs awarded: $3,600.00 Special Conditions of Award: Awarded two AEDs to replace recalled AccessCardioSystems AEDs from 2003 grant. AED expenses are reimbursed for purchases up to a maximum of $1,800 per awarded unit. An invoice must be submitted to DHS by May 31, 2005 for reimbursement. Expenses over the awarded amount of $1,800 per unit are the responsibility of the purchasing agency. AEDs must be a current, FDA-approved model and must be maintained in proper working order. The purchase of units with pediatric capabilities is strongly encouraged. Funding for Training awarded: $0.00 Training Plan: Training awards are based on submitted training costs, number of units awarded, existing CPR and gED training program, number of personnel needing training, and training resources available. An invoice must be submitted to DHS by May 31, 2005 for appropriate training expenses, such as instructor fees and teaching materials. Personnel costs and meeting space will be applied as an in-kind contribution to the grant. 64- COUNCIL BILL NO. ORDINANCE NO. AIq ORDINANCE ACCEPTING A 2004 RURAL ACCESS TO EMERGENCY DEVICES GP~-NT I~CEIVED DUPANG FISCAL YEAR 2004-05, MAKING APPROPRIATIONS, AND DECLARING ~I EMERGENCY. WHEREAS, Oregon Revised Statutes 294.326 provides for the expenditure of grant funds transferred to a municipal corporation for a specific purpose, and WHEREAS, a grant has been received from State of Oregon Department of Human Services for the purpose of purchasing two(2) automated external defibrillators for the Police Department, now, therefore, THE CITY OF WOODBURN ORDAINS AS FOLLOYVS: Section 1. That the grant be accepted for its specific purpose, a copy of which is attached for reference. Section 2. That appropriations be increased within the General Fund for fiscal year 2004-05 as follows: REVENUES General Fund: Grant- State Total General Fund Revenue $ 3,600 $ 3,600 EXPENDITURES: General Fund: Police Department - Capital Outlay Total General Fund Appropriation $ 3,600 $ 3,600 Section :5. This ordinance being necessary for the immediate preservation of the public peace, health and safety, in that adoption of the appropriations will allow the availability of funds to proceed with the purchase of the emergency medical equipment, an emergency is declared to exist and this ordinance shall take effect immediately upon passage by the Council and approval by the Mayor. Approved as to Form:z~''~' r~,~~ 2l ~ tl//~ O 0~' City Attorney ate APPROVED: KATHRYN FIGLEY, MAYOR Page 1 - COUNCIL BILL NO. ORDINANCE NO. 65 Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the l~.ecorder ATTEST. Mary Tennant, ll~ecorder City of Woodburn, Oregon Page 2 - COUNCIL BILL I'40. ORDrNANCE NO. lncorForat~d 11D Februaw 24, 2005 TO: FROM: SUBJECT: Randy Scott, Senior Engineering Technician through the Publi'(~ Works Director Sixth Street Vacation, South of West Lincoln RECOMMENDATION,,: Approve the attached resolution initiating vacation proceeding, setting a public hearing date for the vacation of public right of way, that portion of Sixth Street south of West Lincoln Street to its terminus BACKGROUND: The portion of Sixth Street, south of West Lincoln is currently unimproved gravel surface. The right of way provides access to, and is used for parking for the Oregon Child DeveloPment Coalition (OCDC) property, it also serves as access to one residential property. Sixth Street is a dead end street and is not scheduled for improvement in the Capital Improvement Program. Although, Sixth Street under consideration has no value from a transportation point of vie,,,,,, it does have city and franchised utilities in the right of way. DISCUSSION: The OCDC is planning to renovate the existing facility by removing, rehabilitating some existing structures and building a new structure. Land use approval will need to be obtained through the Community Development Department for this improvement. The existing Sixth Street right of way conflicts with the proposed structure/plan. The property owner Mr. George Lizer submitted a petition to vacate the subject portion of Sixth Street in August 2001. Staff reviewed the petition and requested additional information be provided with petition to meet the requirements of ORS 271.080 and pay the city of woodburn process fee for street vacation. The petitioner took no further action with the city. Agenda Item Review: City Administrator __ City Attorney 67 Honorable Mayor and City Council February 24, 2005 Page 2 Again in October 2003, the property owner, now OCDC submitted a petition and process fee to vacate the subject portion of Sixth Street. Staff reviewed the petition and determined that it did not comply with the petition requirements of ORS 271.080. The petition lacked the majority of the consenting property owners of the affected area. The petitioner tried, but has had a difficult time in acquiring the required signatures within the affected area. This portion of Sixth Street is currently unimproved and is being used as private access and parking area to the existing OCDC structure. The right of way dead ends and serves access to only one additional residence fronting West Lincoln. The residence access will be addressed with the vacation proceedings. Utility easements as needed will also be retained if vacation of the street right of way is granted. The property owner has agreed through his project representative, Scott Edwards Architecture to dedicate additional right of way to the city adjacent to West Hayes Street and on a portion of Settlemier Avenue. The right of way may be used in the future for the realignment of the West Hayes/Settlemier intersection improvements. Staff is recommending that the council initiate the street vacation in accordance with ORS 271.130 and approve the attached resolution setting the public hearing for the proposed street vacation. FINANCIAL IMPACT: The Street Vacation Service Fee of $569.00 paid by OCDC wilt be used to fund process. 68 COUNCIL BILL NO. ORDINANCE NO. A RESOLUTION ESTABLISHING A PUBLIC HEARING DATE FOR THE VACATION OF PUBLIC RIGHT OF WAY, A PORTION OF SIXTH STREET, FROM WEST LINCOLN STREET TO ITS SOUTH TERMINUS AND DIRECTING THE CITY RECORDER TO GIVE PUBLIC NOTICE. WHEREAS, the City Council has the legal authority to initiate a vacation proceeding; and WHEREAS, It is in the public interest to conduct a public hearing on the question of whether certain portions of the existing right of way of sixth street should be vacated; and WHEREAS, City staff has recommended that Council establish a time and place for a public hearing to start the vacation process; and WHEREAS, the City Council, through this resolution, initiates the proposed vacation, NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. The tract of real property subject to the proposed easement vacation is legally described as follows: That portion of Sixth Street, South of West Lincoln Street, located in, Section 7, Township 5 South, Range 1 West, of the Willamette Meridian, City of Woodburn, Marion County, Oregon A diagram of above described area is attached to this Resolution as Exhibit A and is incorporated herein. Section 2. That 7:00 P.M. on April 25, 2005 in the Woodburn City Council Chambers, 270 Montgomery Street, Woodburn, Oregon, is the time and place for the public hearing on whether the above-described right of way shall be vacated. Section 3. That the City Recorder is directed to give notice of the public headng as provided by law. PAGE 1 - COUNCIL BILL NO. ORDINANCE NO. App[oved as to form: City Attorney Approved: Passed by the Council Submitted to the Mayor Approved by fhe Mayor Filed in the Office of the Recorder A'FrEST: Mary Tennant City Recorder City of Woodburn, Oregon Kathryn Figley, Mayor PAGE 2 - COUNCIL BILL NO. ORDINANCE NO. 70 LU OgoI Z m T1 11E February 24, 2005 TO: FROM: SUBJECT: Honorable Mayor and City Council N. Robert Shields, City Attorney Annexation Policy After Passage of Ballot Measure 37 RECOMMENDATION: Receive the report and provide policy direction on whether the City wants to require the waiver of future Measure 37 claims when property is annexed. BACKGROUND AND DISCUSSION: In the November 2004 election, the Oregon voters passed Measure 37. On November 29, 2004, the City Council passed Ordinance 2544, establishing a process for the evaluation of claims. Since the passage of the measure, I have been trying to stay informed about the processing of claims on a statewide basis. So far, counties have experienced many more claims than cities. Washington County appears to be the leader with over 65 claims filed. Approximately 20 claims have been filed against Marion County. The City of Woodburn, as you are aware, currently has only one flied claim. Several counties have already processed and granted land use waivers under the measure. I know of no city that has granted waivers, as of this date. The general consensus of government attorneys is that there may be some additional potential claimants waiting to file their claims. Some lawyers are apparently advising claimants to wait until the 2005 Oregon legislature meets and the "dust settles" before filing claims. In anticipating future claims, one step cities can take is to require a legal waiver by property owners of any Measure 37 claims whenever property is annexed. The rationale behind this policy is that if a property owner is requesting annexation, it is unfair for the property owner to receive what it is requesting and then later make a claim against the city. Agenda Item Review: City Administrat City Attorney 72 Honorable Mayor and City Council February 24, 2005 Page 2 This is a policy matter that should be considered by the City Council. For your reference, I have attached a resolution addressing this subject passed by the City of Ashland and a "Covenant of Waiver of Rights and Remedies" that is currently in use by the City of Forest Grove FINANCIAL IMPACT: If the City Council decides to require waiver of Measure 37 claims when a property is annexed, this practice could save the City the costs of defending against future Measure 37 claims. 73 RESOLUTION NO. 2005- A RESOLUTION REQUIRING WAIVER OF 2004 STATEWIDE MEASURE 37 CLAIMS FOR PROPERTY OWNERS DESIRING TO ANNEX THEIR PROPERTIES TO THE CITY OF ASHLAND PREMISES: The Oregon Voters passed Measure 37 at the November 2004 election. Measure 37 permits a property owner who owned property prior to enactment of a land use regulation restricting their use of the property to make a claim for compensation from the governing body enacting or enforcing a land use regulation for the reduction of value in the property caused by the enactment or enforcement of the land use regulation against the property. Whenever properties are annexed from the Urban Growth Area into the City of Ashland, new land use regulations will apply which may restrict the uses that may be applicable to a property, possibly leading to new Measure 37 claims. Whenever a property owner chooses to request annexation into the City of Ashland, the City has determined that the property owner is also choosing to be bound by the land use regulations then in effect within the City. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The City will not consider any request for annexation into the City limits unless all persons or entities with an ownership interest in the property submit a written waiver of any Measure 37 claim that may accrue for uses that could have been made of the property prior to its annexation into the City of Ashland. SECTION 2. This resolution takes effect upon signing by the Mayor. This resolution was read by title only in accordance with Ashland Municipal Code §2.04.090 duly PASSED and ADOPTED this ~ day of ,2005. Barbara Christensen, City Recorder SIGNED and APPROVED this day of ,2005. Reviewed as to form: John W. Morrison, Mayor Michael W. Franell, City Attorney 1- BPA surcharge reduction 10-2004 G:\tegal\Mike\Resolutions\BPA surcharge reduction 10-2004,DOC '74. Name of Document For Recording: Covenant Of Waiver Of Ri hts And Remedies Grm~tor: i Grantee: City of Forest Grove Consideration: None. Tax Statement to be mailed to: No change. Recordation Authority: LOC 12.52.010 After t/~ecording, Return To: City of Forest Grove, Attn: City Recorder, P.O. Box 326, Forest Grove, OR 97116 (For County Recording Use Only) Covenant Of Waiver Of Rights And Remedies Whereas, ~i! ~ (hereinafter referred to as "Petitioner", including collectively all petitioners) has petitioned to the City of Forest Grove ("City") to commence certain proceedings, e.g., annexation, zone change, for the following described real property, Whereas, pursuant to the enactment of Ballot Measure 37 (effective December 2, 2004), a property owner may elect to seek just compensation or waiver of land use regulations if a public entity enacts or enforces the land use regulations after the property owner acquired the property; Whereas, there is the potential that the Oregon electors or the Oregon Legislature may, in the future, enact further statutory or constitutional amendments relating to compensation for the impact of local regulations upon real property, under certain circumstances; Whereas, City does not wish to approve the Petitioner's requested proceedings if the result would or could give rise to a later claim by the owner or the owner's successors or assigns for compensation for the land use regulations in effect upon the effective date of the proceedings or would or could give rise to a right to require the City to waive the City's land use regulations in effect upon the effective date of the proceedings, which are being newly imposed upon the property by reason and result of the proceedings; and Whereas, Petitioner seeks to induce the City to proceed with the proceedings and therefore agrees to eliminate the potential of claim for compensation or the right to seek waiver from the City's land use regulations existing as of the effective date of the proceedings; Now, therefore, the undersigned Petitioner warrants that the petitioner executing this Covenant holds the full and complete present ownership or any interest therein in the property, and hereby agrees and covenants as follows: Page 1 - Covenant Of Waiver Of Rights And Remedies As inducement to the City to proceed with the following proceeding(s) affecting the subject real property: Annexation and Rezone, which may include designation of the property as subject to additional applicable overlay zones, districts and development regulations (all inclusively referred to herein as "proceedings"), the undersigned Petitioner, on behalf of Petitioner, Petitioner's heirs, devisees, executors, administrators, successors and assigns, agrees and covenants to the City of Forest Grove, its officers, agents, employees and assigns that the undersigned hereby remises, waives, releases and forever discharges, and agrees that Petitioner shall be estopped frorn asserting any rights and remedies, actions, causes of action, suits, claims, liabilities, demands, and rights to waivers arising under or granted by any statutory or constitutional regulatory compensation or waiver provisions, including but not limited to Ballot Measure 37 (2004) or otherwise enacted after the date of this proceeding which would create a right of claim for compensation or waiver from city land use regulations that exist upon the effective date of the proceeding and which, by the approval of the proceeding, are then applicable to the property. This waiver and release shall bind the undersigned's heirs, devisees, executors and administrators, successors in interests, and assigns. This covenant, waiver, release and discharge shall run with the land, and this instrument or a memorandum hereof may be recorded in the official records of the County in which the subject real property is located. This instrument may be terminated upon the filing of a Notice of Termination of Covenant filed by the City of Forest Grove. If this instrument is given contemporaneous with a consent to future proceedings to be initiated by the City, Petitioner acknowledges that the proceedings may be initiated by the City of Forest Grove at any time in the discretion of the City of Forest Grove and that this waiver and release is applicable to any ordinances adopted prior to the effective date of the proceeding. This document is executed of my own free will and without duress. I, or if more than one, each of us respectively acknowledge that I/we have been advised to obtain legal advice prior to the execution of this document, and that either I, or each of us respectively, have either obtained legal advice or have independently elected not to seek legal advice prior to the execution of this document, recognizing that this document may affect our legal rights and remedies. DATED this day of 200 Petitioner Name: (signature) Date Signed: Petitioner Name: (signature) Date Signed: Page 2 - Covenant Of Waiver Of Rights And Remedies 76 Petitioner (corporation, etc.) Name: By: Name of Signor: Office/Title of Signor: State of Oregon ) County of Washington) On this day of Notary Public, personally appeared , before me the undersigned (name of Petitioners signing; not Notary name) [] personally known to me 71 proved to me on the basis of satisfactory evidence To be the person who executed the within instrument [] as or on behalf of the entity therein named, pursuant to authority, and acknowledged to me the execution hereof. WITNESS my hand and official seal (Do not write outside of the box) Notary Signature Notary name (legible): Place Notary Seal Below This document is accepted pursuant to authority and approved for recording. City of Forest Grove, Oregon Michael J. Sykes, City Manager Page 3 - Covenant Of Waiver Of Rights And Remedies 77 13A February 28, 2005 TO: Honorable Mayor and City Council through City Administrator FROM: SUBJECT: Jim Mulder, Director of Community Development ~I Planning Commission's Approval of Partition 04-~6, Variance 04-26 and Variance 05-02 RECOMMENDATION: No action is recommended. This item is placed before the City Council for information purposes in compliance 'with the Woodburn Development Ordinance. The City Council may call up this item for review if it desires. BACKGROUND: On February 24, 2005, the Planning Commission adopted a final order approving Partition 04-06, Variance 04-26 and Variance 05-02 to partition the subject lot into two parcels located at 1123 McKinley Street. Parcel #1 would be approximately 11,792 square feet and parcel 2 is proposed to be approximately 8,100 square feet (excluding the 20 foot wide strip of land that is proposed to access the flag lot). The applicant also requests variance approval to the street standards on McKinley Street and variance approval to allow the proposed parcel #2 (flag lot) to have the front property line oriented toward the private access strip instead of McKinley Street. The subject property is located at 1123 McKinley Street and is further identified on the Marion County Assessor Map as Township 5 South, Range 1 West, Section 17BB, Tax Lot 3200. The existing property is approximately 22,572 square feet in size and contains one single-family dwelling with two small storage sheds located to the north west of the existing single family dwelling. The applicant is proposing to partition the subject property into two parcels. Parcel #1 would be approximately 11,792 square feet and parcel #2 is proposed to be approximately 8, t00 square feet (excluding the 20 foot wide strip of land that is proposed to access the flag lot). Parcel #1 contains an existing single family residential dwelling. Parcel #2 is proposed to be a flag lot accessed by a 20 foot wide strip of land. No wetlands are located on the subject site and it is located outside of the 500 year floodplain. Agenda Item Review: City Admini,. City Attorney Finance 79 Honorable Mayor and City Council February 28, 2005 Page 2 The subject property is zoned Single Family Residential (RS), designated Residential Less Than 12 Units Per Acre on the Woodburn Comprehensive Plan Map, and is the location of a single family dwelling. The properties to the north, east and west of the subject site are also zoned Single Family Residential (RS), designated Residential Less Than 12 Units Per Acre on the Woodburn Comprehensive Plan Map and are the location of vacant land and single family dwellings. The property located to the south (across McKinley Street) is zoned Commercial General (CG), designated Public Use on the Woodburn Comprehensive Plan Map and is the location of an Oregon Department of Transportation storage facility. The applicant and property owner is Greg Allen. DISCUSSION: None. FINANCIAL IMPACT: There is no financial impact associated with the recommended action. 80 13B February 28, 2005 TO: FROM: SUBJECT: Honorable Mayor and City Council through City Administrator Jim Mulder, Director of Community Development ~ Community Development Director's Approval of Partition 05-03. RECOMMENDATION: No action is recommended. This item is placed before the City Council for information purposes in compliance with the Woodburn Development Ordinance. The City Council may call up this item for review if it desires. BACKGROUND: On February 18, 2005, the Woodburn Community Development Director approved the applicant's request for the modification of Condition of Approval #3 of Partition Application Case File No. 04-07 so that final plat approval of parcel 1 will not be subject to the recordation of phase ] of the Boones Crossing Planned Unit Development (PUD). Instead, the applicant proposes to provide an easement for access through phase 1 of the Boones Crossing PUD to parcel ] created in Partition Application Case File No. 04-07. The subject property is located west of Brown Street, east of South Boones Ferry Road, south of Country Lane and north of the city limits. The subject site is identified specifically on Marion County Tax Assessor's Maps as T5S, RlW, Section 18C, Tax Lot 1400. The subject property is zoned City of Woodburn "Single Family Residential" (RS), designated Residential Less Than 12 Units Per Acre on the Woodburn Comprehensive Plan Map, and is vacant. The properties to the west (across S. Boones Ferry Road), east and south of the subject property is zoned Marion County "Urban Transition Farm" (UTF), designated Residential Less Than 12 Units Per Acre on the Woodbum Comprehensive Plan Map, and are the location of vacant land and single family dwellings. The property to the north (phase 1 of the Boones Crossing PUD) is zoned RS, designated Residential Less Than 12 Units Per Acre on the Woodburn Comprehensive Plan Map, and is currently vacant. No wetlands are located on the subject property. The subject site is located outside of the 500 year floodplain. Agenda Item Review: City Administrat City Attorney ~J~ Financ ~ 81 Mayor and City Council February 28, 2005 Page 2 On November 19, 2004 the Community Development Director approved the partition of a 48.35 acre parcel into three parcels in the Single Family Residential (RS) zone (Partition Application Case File No. 04-07). The three parcels have property lines corresponding to the phase lines of phases 2-6 of the Boones Crossing Planned Unit Development (PUD). Parcel 1 (phase 2 of the Boones Crossing PUD) is 6.36 acres in area, parcel 2 (phase 3 of the Boones Crossing PUD) is 8.45 acres in area and parcel 3 (phases 4,5 and 6) is 33.54 acres in area. Condition of approval #3 of Partition Application Case File No. 04-07 states "...Final plat approvat of parcel 1 shall be subject to the recordation of phase 1 of the Boones Crossing PUD..." The above stated condition of approval ,was required so the requirement in Section 3.104.01 .A.1 of the WDO that "...every lot shall have direct access to an abutting public street or to a public street by an irrevocable access easement..." would be met. The applicant requests the modification of Condition of Approval #3 of Partition Application Case File No. 04-07 so the final plat approval of parcel 1 wilt not be subject to the recordation of phase 1 of the Boones Crossing Planned Unit Development (PUD). Instead, the applicant proposes to provide an easement for access through phase 1 of the Boones Crossing PUD to parcel t (created in Partition Application Case File No. 04-07) until phase 1 of the Boones Crossing PUD is recorded. The property owners are Faye E. Zimmer & Nancy K. Bocci. The applicant is Boones Crossing, LLC. DISCUSSION: None. FINANCIAL IMPACT: There is no financial impact associated with the recommended action. ATTACHMENT A IN THE PLANNING COMMISSION OF WOODBURN, OREGON LEGISLATIVE AMENDMENT 05-02 FINAL ORDER WHEREAS, a proposal was initiated by the Woodburn City Council to revise the text of the Woodbum Development Ordinance (WDO), and; WHEREAS, the Planning Commission reviewed the matter at their meeting of January 27, 2005, and; WHEREAS, the Planning Commission considered the written and oral testimony presented by staff, the appliCant, and other interested persons, and; WHEREAS, the Planning Commission closed the hearing, and; WHEREAS, the Planning Commission moved to recommend that the City Council approve the draft revisions to the WDO and instructed staff to prepare a final order to substantiate the Commission's decision. NOW, THEREFORE, IT IS HEREBY ORDERED BY THE COMMISSION: The Planning Commission hereby recommends that the City Council adopt the draft revisions to the WDO as contained in Exhibit "A", based on the findings contained in Exhibit "B", which are attached hereto and by reference incorporated herein. Approved: Date Upcoming Events Woodburn Area Chamber of Commerce Greeter's - March 4 Countrywide Home Loans 7:30 - 9:00am Greeter's - March 11 Billy-O Deli and Pub 7:30 - 9:00am Forum Lunch - March 16 Noon-l:15pm at the Tukwila Center for Health and Medicine WHS restructuring under the Gates Foundation grant, business community help Distinguished Service Awards Dinner - March 18 Country Meadows Village Sports theme - Wear your favorite team colors Greeter's Program - March 18 Willamette Broadband 7:30 - 9:00am Greeter's - March 25 Wooden Shoe Tulip Farm with Chambers from the surrounding areas 7:30- 9:00am Community Auction - April 16 Celebrate Woodburn! 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