NOTICE OF PUBLIC MEETING CITY OF ALBANY OUR MISSION IS CITY COUNCIL “Providing quality public services Council Chambers for a better Albany community.” 333 Broadalbin Street SW Wednesday, June 9, 2010 OUR VISION IS 7:15 p.m. “A vital and diversified community that promotes a high quality of life, AGENDA great neighborhoods, balanced economic growth, and quality public services.”

Rules of Conduct for Public Hearing

1. No person shall be disorderly, abusive, or disruptive of the orderly conduct of the hearing. 1. CALL TO ORDER 2. Persons shall not testify without first receiving recognition from the presiding officer and stating their 2. PLEDGE OF ALLEGIANCE TO THE FLAG full name and residence address. 3. No person shall present irrelevant, immaterial, or 3. ROLL CALL repetitious testimony or evidence. 4. There shall be no audience demonstrations such as 4. SPECIAL PRESENTATIONS applause, cheering, display of signs, or other conduct disruptive of the hearing. a. Historic Preservation Awards. [Page 1] Action: ______b. Bicycle Friendly City Award. [verbal] Action: ______

5. SCHEDULED BUSINESS

a. Public Hearings 1) Adopting the 2011-2015 Capital Improvement Program. [Pages 2-3] Action:______RES. NO.______2) Authorizing interfund capital loans from the Water and Sewer Funds to the Capital Projects Fund for interim financing of two Local Improvement Districts. [Pages 4-6] Action:______RES. NO.______3) Adopting the approved 2010-2011 annual budget. [Pages 7-12] Action:______RES. NO.______4) Declaring the City’s eligibility to receive state revenues and the City’s election to receive state revenues. [Pages 13-15] Action:______RES. NO.______Action:______RES. NO.______

b. Business from the Public

c. Adoption of Resolutions 1) Accepting the amended City of Albany public records policy, setting fees, and repealing Resolution No. 5546. [Pages 16-23] Action:______RES. NO.______2) Declaring an intent to reimburse expenditures for water, sewer, and street improvements on Timber Ridge Street with tax-exempt financing. [Pages 24-25] Action:______RES. NO.______3) ST-09-03, Oak Street Local Improvement District, adopting the Engineering and Financial Investigation Reports, securing easements and right-of-way, obtaining bids, and issuing debt for construction. [Pages 26-33] Action:______RES. NO.______4) ST-08-04, Infrastructure Improvements – Somerset to Timber Ridge School, accepting the Engineering and Financial Investigation Reports, and setting a public hearing. [Pages 34-40] Action:______RES. NO.______Albany City Council Page 2 of 2 June 9, 2010

d. Adoption of Consent Calendar 1) Approval of Minutes a) February 13, 2006, GAPS Joint Work Session. [Pages 41-47] b) March 19, 2007, GAPS Joint Work Session. [Pages 41 and 48-53] c) April 4, 2007, Lebanon City Council Joint Meeting. [Pages 41 and 54-60] d) December 5, 2007, GAPS Joint Work Session. [Pages 41 and 61-66] e) November 7, 2007, Landmarks Advisory Commission Joint Meeting. [Pages 41 and 67-70] f) April 20, 2009, Planning Commission and Budget Committee Joint Work Session. [Pages 41 and 71-72] g) October 26, 2009, GAPS Joint Work Session. [Pages 41 and 73-80] h) April 12, 2010, Planning Commission and Budget Committee Joint Work Session. [Pages 41 and 81-83] i) April 28, 2010, City Council Regular Session. [Pages 84-86] j) May 12, 2010, City Council Regular Session. [Pages 87-93] 2) Authorizing the Fire Department to accept $280,023 from the Oregon Emergency Management Seismic Rehabilitation Grant program. [Pages 94-95] RES. NO.______3) Accepting a special purpose grant from the Bill and Melinda Gates Foundation. [Pages 96-97] RES. NO.______4) Annual liquor license renewals. [Page 98] Action: ______

e. Award of Bids 1) WL-10-02, Columbus and Bradley Streets Water Line. [Pages 99-101] Action: ______2) ST-11-03, Liberty Street Rehabilitation. [Pages 102-105] Action: ______3) AR-10-02, Airport Runway Rehabilitation. [Pages 106-107] Action: ______

f. Report 1) Setting a public hearing for water and sewer rate adjustments. [Pages 108-113] Action: ______

6. BUSINESS FROM THE COUNCIL

7. RECESS TO EXECUTIVE SESSION TO DISCUSS REAL PROPERTY TRANSACTIONS IN ACCORDANCE WITH ORS 192.660 (2)(e)

8. RECONVENE

9. NEXT MEETING DATE: Work Session June 21, 2010 Regular Session June 23, 2010

10. ADJOURNMENT

City of Albany Web site: www.cityofalbany.net

The location of the meeting/hearing is accessible to the disabled. If you have a disability that requires accommodation, please notify the Human Resources Department in advance by calling (541) 917-7500. TO: Albany City Council

VIA: Wes Hare, City Manager i.LJ<' Greg Byrne, Community Development DirrrU FROM: Anne Catlin, Planner II b DATE: June 2, 2010, fortbe June 9, 2010, City Council Meeting

SUBJECT: Historic Preservation Awards

RELATES TO STRATEGIC PLAN THEME: - Great Neigbborhoods

National Preservation Month was designed to raise awareness about the power historic preservation has to protect and enhance our homes, downtown, neigbborhoods and cities. "Old i!! the New Green" is this year's theme. Historic preservation is an important component of any effort to promote sustainable development. The conservation and improvement of our existing built resources, including re-use of historic and older buildings, greening tbe existing building stock, and reinvestment in older and historic communities, is crucial to combating climate change.

To celebrate National Historic Preservation month, the Mayor will present awards selected by tbe Landmarks Advisory Commission to two property owners at tbe June 9, 2010, City Council meeting for their good stewardship and taking pride in preserving their historic buildings. The Mayor will also give awards to the winners of the kids coloring contest of historic homes drawn by local artist Gwen Marchese. ale

U:\Community Development\PlarminglJfistoric\2010Iccmemolune9.docx

1 TO: Albany City Council

VIA: Wes Hare, City Manager . Diane Taniguchi-Dennis, P.E., Public Works Director ~

FROM: Mark W. Shepard, P.E., Assistant Public Works Director / City Engineer Chris Cerklewski, P.E., Civil Engineer III

DATE: June 2, 2010, for the June 9,2010, City Council Meeting

SUBJECT: Capital Improvement Program (CIP) Public Hearing and Resolution

Action Requested:

Staff requests Council consideration and adoption of the 2011-20I5 Capital Improvement Program (CIP) by adopting the attached resolution.

Discussion:

This evening the City Council is holding a public hearing to consider the adoption of the 2011­ 2015 Capital Improvement Program (CIP). The City Council, Planning Commission, and Budget Committee held a joint work session on April 12, 2010, to review and comment on the draft 2011-2015 CIP document. Based on the comments received, changes were made and an updated document was circulated on April 30, 2010, to the City Council, Planning Commission, Budget Committee, and staff. In addition, the document was made available to the public at the two City libraries, the Public Works counter, and on the City's web site.

Upon deliberation after the Public Hearing, Council may make any necessary changes to the proposed plan and act upon the attached resolution for adoption of the 2011-2015 Capital Improvement Program. The CIP is typically adopted in advance of the City Budget and before the new fiscal year beginning on July 1,2010.

Budget Impact:

Ifadopted, the first year's projects will be incorporated in the FY 2010-2011 City Budget.

CLC:plj Attachment

G:l.Admin\CIPICIP 2011-2015IAdministrative\MC_Public Hearing FinalStaffReport-2011-15.CLC.docx 2 RESOLUTION NO., _

A RESOLUTION CALLING FOR THE ADOPTION OF THE 2011-2015 CAPITAL IMPROVEMENT . PROGRAM.

WHEREAS, the Capital Improvement Program of the City of Albany is a long-term planning document intended to allow for prioritization, financing, coordination, and timely technical design and construction ofprojects to better serve the citizens ofAlbany; and

WHEREAS, the Capital Improvement Program plays a vital role in the budget process; land use planning; facility plan implementation; and coordination with the state, county, and other local municipalities; and

WHEREAS, the projects listed in the 2011-20IS Capital Improvement Program have been prioritized; and

WHEREAS, the Albany City Council held a public hearing on May 26,2010, on the proposed 2011-2015 Capital Improvement Program.

NOW, THEREFORE, BE IT RESOLVED that the Albany City Council hereby approves and adopts the 2011-20IS Capital Improvement Program.

DATED AND EFFECTIVE THIS 26TH DAY OF MAY 2010.

Mayor

ATTEST:

City Clerk

G:\Admin\CIP\CIP 2011-2015\AdministrativeIMC_Public HearingFinalStaffReport-2011-15.CLC.docx 3 TO: Albany City Council

VIA: Wes Hare, City Manager r-./ FROM: Stewart Taylor, Finance Director ~

DATE: June 1,2010, for the June 9, 2010, City Council Meeting

SUBJECT: Interfund Capital Loans for Interim LID Financing

RELATES TO STRATEGIC PLAN THEME:. Effective Government

Action Requested: Conduct a supplemental budget public hearing and, by resolution, approve interfund capital loans . from the Water and Sewer Funds to the Capital Projects Fund for interim financing of improvements for two Local Improvement Districts (LIDs).

Discussion: On May 28, 2008, the City Council established two local improvement districts (LIDs) to provide water, sewer, and transportation services to the new Timber Ridge Elementary School. The City also entered into an intergovernmental agreement with Greater Albany Public Schools (GAPS) to provide for construction ofthe north LID improvements. The agreement authorized the district to act as project manager for the improvements and to use district bond proceeds as interim financing for the project.

The north LID improvements have been completed. The City Council will consider the final engineer's report on tonight's agenda, and will be asked to schedule a public hearing on June 23, 2010, to receive public comment and to establish assessments to the benefited properties. After the assessments are imposed, GAPS will be paid for any interim financing that it provided which exceeds its assessment. One of the loans authorized in the attached resolution provides resources for the City to make the payment to GAPS. The City would, in turn, be paid through assessment payments ofthe other property owner(s).

The City intends to complete the south LID improvements before school begins this fall. A separate item on tonight's agenda is a bid award for those improvements. The second loan in the attached resolution provides interim financing for completion of the south LID improvements. The final engineer's report and recommendation for a public hearing to receive public comment and consider assessments to the benefited properties will be brought to the City Council following completion ofthe project.

The two proposed loans total $4,I00,000. Oregon Local Budget Law allows a local government to loan money from one fund to another, provided the loan is authorized by an official resolution or ordinance (ORS Section 294.460). The two interim loans are intended to be paid in full in Fiscal Year 2010-201 I together with a rate ofreturn equal to the City's investment rate. Proceeds for the payments will come from conventional bond financing or through a revolving loan fund established with PepsiCo settlement proceeds.

Budget Impact: The resolution authorizes two interfund loans to provide interim financing for LID projects near the Timber Ridge Elementary School.

ST Attachment: Resolution c: Diane Taniguchi-Dennis, Public Works Director G:\Mary\CCMemosIGAPS InterfundLoans.docx 4 RESOLUTION NO. _

A RESOLUTION AUTHORIZING INTERFUND CAPITAL LOANS FROM THE WATER AND SEWER FUNDS TO THE CAPITAL PROJECTS FUND FOR INTERIM FINANCING OF TWO LOCAL IMPROVEMENT DISTRICTS.

WHEREAS, on May 28, 2008, the City Council established two local improvement districts (LIDs) to provide water, sewer, and transportation services to the new Timber Ridge Elementary School; and

WHEREAS, the City also entered into an intergovernmental agreement with Greater Albany Public Schools (GAPS) to provide for construction ofthe north LID improvements; and

WHEREAS, the agreement authorized the district to act as project manager for the north LID improvements and to use district bond proceeds as interim financing for the project; and

WHEREAS, the north LID improvements have been completed and once the assessments are imposed, the City will reimburse GAPS for any interim financing that it provided which exceeds its assessment; and

WHEREAS, the City intends to complete the south LID improvements before school begins in September 2010; and

WHEREAS, interim financing is needed to complete the south LID improvements; and

WHEREAS, Oregon Local Budget Law allows a local government to loan money from one fund to another, provided the loan is authorized by an official resolution or ordinance (ORS Section 294.460); and

WHEREAS, interfund loans from the Water and Sewer Systems Capital Projects Programs to the Capital Projects Fund are intended to provide interim financing for the reimbursement to GAPS and completion of the south LID improvements; and

WHEREAS, the interim loans are intended to be paid in full in Fiscal Year 2010-2011 together with a rate of return equal to the City's investment rate.

NOW, THEREFORE, BE IT RESOLVED that the City of Albany City Council approves the interfund loans as described below:

1. Detail of the two loans:

lID1 ST-08-04 Somerset to School DEBITS CREDITS CAPITAL PROJECTS FUND(402) LID Construction Projects (402-10-1012) FromWater Capital 402-10-1012-49027 800,000 FromSewerCapital 402-10-1012-49020 850,000 Unbonded Asmnts: Principal 402-10-1012-45007 1,650,000

SEWER FUND (601) Sewer Capital Projects (601-50-25001 To LID Construction Projects 601-50-2500-91267 850,000 Reserve: Capital Projects 601-50-2500-90012 850,000

WATER FUND (615) Water Capital Projects (615-50-2308) To LID Construction Projects 615-50-2308-91267 800,000 Reserve: Capital Projects 615-50-2308-90012 800,000 5 L1D2 ST-08-06 School to Knox 8utte DE81TS CREDITS CAPITAL PROJECTS FUND (402)

LID Construction Projects (402 MI0-1012) From Water Capital 402-10-1D12-49027 1,200,000 FromSewerCapital 402-10-1012-49020 1,250,000 LlD2 ST-08-06 School to Knox Butte 402-10-1012-85023 2,450,000

SEWER FUND (601) Sewer Capital Projects (601-50-2500) To LID Construction Projects 601-50-2500-91267 1,250,000 Reserve: Capital Projects 601-50-2500-90012 1,250,000

WATER FUND (615) Water Capital Projects (615-50-2308) To LID Construction Projects 615-50-2308-91267 1,200/000 Reserve: Capital Projects 615-50-2308-90012 1,200,000

2. The loans will be repaid in Fiscal Year 2010-2011 together with a rate of return equal to the City's investment rate.

DATED AND EFFECTIVE THIS 9TH DAY OF JUNE 2010.

Attest: Mayor

City Clerk

G:\MarylResolutions & Ordinances\GAPS InterfundLoans.l.docx

6 ~~~ TO: Albany City Council • VIA: Wes Hare, City Manager v4/JjJihii.._.__ .~,. FROM: Stewart Taylor, Finance Direct~

DATE: June 2, 2010, forthe June 9, 2010, City Council Meeting

SUBJECT: Resolution adopting the 2010-2011 Annual Budget

RELATES TO STRATEGIC PLAN THEME:. An Effective Government

RELATES TO: • Effectively deliver the services that Albany's citizens need, want, and are willing to support.

Action Requested:

Consider testimony received during the public hearing and approve the resolution adopting the budget, making appropriations, declaring and categorizing taxes for Fiscal Year 2010-2011, and approving the adjustments recommended in the staff report.

Discussion:

The Budget Committee ofthe City of Albany approved the Proposed Budget on May 20, 2010.

Staff has identified two adjustments to the Approved Budget and recommends the following: • The Oregon CDBG Housing Rehabilitation Grant was included in the approved budget at $400,000. We have since received confirmation that the grant will actually be funded at $297,700. The budget adjustment decreases the revenue and expenditure line items in the grant fund to reflect the actual amount of the grant to be received. • The Parks and Recreation Department has received a $52,000 bequest from the Bourquin Estate to be used exclusively for the Senior Center and Senior Services. The budget adjustment creates a reserve line item in the Senior Services Program.

A financial summary of the approved budget and a notice of budget hearing before the City Council were published in the Democrat Herald on Tuesday, June 1,2010, in accordance with Oregon Local Budget Law CORS 294.416). The City Council may take action to adopt the budget once the public hearing has been held and testimony has been considered.

Budget Impact:

The resolution adopts the approved Fiscal Year 20 I0-2011 annual budget of$185,274,800.

ST Attachment: Resolution

7 RESOLUTION NO. _

BE IT RESOLVED that the Albany City Council hereby adopts the approved 2010-2011 budget in the total sum of $185,274,800 now on file at the Albany City Hall.

BE IT FURTHER RESOLVED that the amounts for the fiscal year beginning July 1, 2010, and for the purposes shown below are hereby appropriated as follows:

GENERAL FUND Nondepartmental Materials & Services $ 267,800 Municipal Court 628,300 Code Enforcement 20,900 Fire Suppression 7,998,000 Public Safety Levy: Fire 949,200 Fire & Life Safety 670,100 Police 11,598,000 Public Safety Levy: Police 1,016,400 Planning 1,134,400 Housing 260,300 Library 2,367,000 Transfers Out 1,130,900 Contingency 1,359,800 Total GENERAL FUND $ 100

SPECIAL REVENUE FUNDS PARKS & RECREATION Sports Services $ 200,300 Children/Youth/Family Rec Services 246,900 Resource Development/Marketing Services 282,800 Adult Recreation & Fitness Services 87,300 Park Maintenance Services 1,299,900 Parks & Recreation Administration 1,069,300 Senior Services 396,400 Aquatic Services 737,200 NW Art & Air Festival 184,300 Performance Series 162,200 Urban Forestry 240,300 Park SDC Projects 316,500 Senior Center Foundation 19,600 Parks Capital Improvement Program 2,006,000 Transfers Out 1,783,800 Contingency 244,100 Total PARKS & RECREATION $

8 SPECIAL REVENUE FUNDS, continued GRANTS Personnel $ 84,000 Materials & Services 1,178,800 Capital 4,000,300 Total GRANTS $

BUILDING INSPECTION Building Inspection $ 1,185,000 Electrical Permit Program 149,800 ADA Code Enforcement 66,600 Transfers Out 1 Total BUILDING INSPECTION $

RISK MANAGEMENT Risk Management $ 613,000 PepsiCo Settlement Projects 18,660,000 Total RISK MANAGEMENT $

ECONOMIC DEVELOPMENT Target Utilities $ 44,600 Economic Development Activities 564,200 Albany Municipal Airport 505,800 Transfers Out 90,000 Total ECONOMIC DEVELOPMENT $

AMBULANCE Personnel $ 1,892,800 Materials & Services 324,200 Total AMBULANCE $

PUBLIC TRANSIT Albany Transit System $ 530,000 Linn-Benton Loop 459,700 Paratransit System 283,600 Total PUBLIC TRANSIT $

PUBLIC SAFETY LEVY Transfers Out $ 2,977,500 Total PUBLIC SAFETY LEVY $

CAPITAL REPLACEMENT Equipment Replacement $ 3,849,600 City Facilities Replacement 625,300 OF Facilities Maintenance Projects 387,500 IT Equipment Replacement 1,858,400 Transfers Out 290,000 Total CAPITAL REPLACEMENT $ 7,010,800

9 SPECIAL REVENUE FUNDS, continued STREET Personnel $ 732,500 Materials & Services 2,877,500 Capital 8,767,900 Transfers Out Total STREET $

DEBT SERVICE FUND DEBT SERVICE Bancroft Debt Service $ 261,700 1995 Fairgronnds Revenue Bonds 216,600 2002 LTD Tax Pension Bonds 854,800 2004 Revenue Obligations 414,300 2007 GO Refunding Bonds 2,208,700 Total DE1H SERVICE $ 100

CAPITAL PROJECT FUND CAPITAL PROJECTS Albany Data Integration Project $ 153,000 LID Construction Projects 1,850,000 Albany Station REA Building 1,280,000 Albany Station Pathway 678,000 North Albany Park & Ride 832,000 ST-07-03 53rd Ave BridgelRoadway 593,600 Transfers Out Total CAPITAL PROJECTS $

PERMANENT FUNDS SENIOR CENTER ENDOWMENT Materials & Services $ 2,000 Unappropriated 51,400 Total SENIOR CENTER ENDOWMENT $

LIBRARY TRU&T V. O. Tomey Trust $ 13,100 Manela Trust 74,500 Total LIBRARY TRUST $ 87,600

10 ENTERPRISE FUNDS SEWER Personnel $ 1,987,900 Materials & Services 6,477,400 Capital 17,495,200 Transfers Out 762,500 Debt Service 15,233,000 Contingency 715,400 Total SEWER $

WATER Persounel $ 2,144,300 Materials & Services 7,123,500 Capital 13,870,300 Transfers Out 400,500 Debt Service 3,921,400 Contingency 821,300 Total WATER $

INTERNAL SERVICE FUNDS CENTRAL SERVICES Finance $ 1,373,200 Council & Nondepartmental 261,500 City Manager's Office 1,112,400 Information Technology Services 1,199,500 GIS Services 441,300 Permit Tracking 94,800 Human Resources 681,500 Facilities Maintenance 636,200 Total CENTRAL SERVICES $

PUBLIC WORKS SERVICES PW Administration $ 600,300 Engineering Services 2,701,800 Operations Administration 1,217,400 Water Quality Control Services 367,900 PW Customer Services 1,089,800 Facilities & Maintenance Engineering 1,292,600 Total PUBLIC WORKS SERVICES s

11 BE IT FURTHER RESOLVED that the Albany City Council hereby imposes the taxes provided for in the adopted budget at a permanent rate of $6.3984 per one thousand of assessed value, a local option rate of $0.95 per one thousand of assessed value, and bonded debt service in the amount of $2,266,182, plus an adjustment for annexations, and that these taxes are hereby levied upon all taxable property within said districts as of I a.m., July I, 2010. The following allocations and categorizations, subject to the limits of SECTION IllB, Article XI, of the Oregon Constitution, make the aggregate levy.

Subject to the General Excluded Government from the Limitation Limitation

Gross tax levy $6.3984 per $1,000 of Assessed Value

Public Safety Levy $0.95 per $1,000 of Assessed Value

Debt Service $ 2,266,182

Passed by the Council: '- _

Approved by the Mayor: _

Effective v,"v. _

Mayor

ATTEST:

City Clerk

12 TO: Albany City Council

VIA: Wes Hare, City Manager FROM: Stewart Taylor, Finance Dif.·tor % Betty Langwell, City Cler DATE: June 02, 2010, for the June ,2010, City Council Meeting

SUBJECT: State Revenue Sharing

Action Requested:

Hold the public hearing as part of the Approved Budget for Fiscal Year 2010-2011 public hearing. Then, pass the resolution certifying that the City is eligible for state revenue sharing money and the resolution stating that the City wants to receive state revenue sharing money.

Discussion:

A percentage of the net revenue from state shared revenues (highway taxes) is authorized for distribution under the State Revenue Sharing Program, ORS 221.770. The funds are based on a formula that compares the City's consolidated property tax rate, per capita income, and population against the statewide averages. They also reflect the percentage of upward or downward trends in per capital tax distribution. The funds are paid quarterly.

The law requires that cities provide two opportunities for the public to comment regarding the proposed use of the state revenue sharing monies. The first opportunity is held before the Budget Committee, which we do as part of our Budget Committee review of the proposed budget. The second opportunity is before the City Council as part of the public hearing on the Approved Budget for the FY 20 I0-20 I!.

The public has been informed through the usual public notification process.

Budget Impact:

The Budget Committee has approved State Revenue Sharing funds at $417,200. In the 2010­ 20 II City ofAlbany Budget, the money is used to help fund the Transit System.

Attachment

G:ICfty Clerk\Budgellstate revenue city counciL2010.mmo.docx 13 RESOLUTION NO. _

A RESOLUTION DECLARING THE CITY'S ELIGIBILITY TO RECEIVE STATE REVENUES.

WHEREAS, ORS 221.760 provides as follows:

Section 1. The officer responsible for disbursing funds to cities under ORS 323.455, 366.785 to 366.820 and 471.805 to 471.81 0 shall, in the case ofa city located within a county having more than 100,000 inhabitants according to the most recent federal decennial census, disburse such funds only if the city provides four or more ofthe following services:

(l) Police protection (2) Fire protection (3) Street construction, maintenance and lighting (4) Sanitary sewer (5) Storm sewers (6) Planning, zoning, and subdivision control (7) One or more ntility services and;

WHEREAS, city officials recognize the desirability ofassisting the state officer responsible for determining the eligibility ofcities to receive snch funds in accordance with ORS 221. 760;

NOW, THEREFORE, BE IT RESOLVED that the City of Albany hereby certifies that it provides the following four or more municipal services enumerated in Section I, ORS 221.760: Police protection, Fire protection, Street construction, maintenance and lighting, Sanitary sewer, (Storm sewers), Planning, zoning, and subdivision control.

DATED AND EFFECTIVE rms 9TH DAY OF JUNE 201 O.

Passed by the Council: _

Approved by the Mayor: _

Effective

Mayor

ATTEST:

City Clerk

14 G:ICily Clerk\Budgetlstafe.revenues.declaration ofeligib.res.20I O. doc RESOLUTION NO. _

A RESOLUTION DECLARlNG THE CITY'S ELECTION TO RECEIVE STATE REVENUES.

Pursuant to ORS 221.770, the City ofAlbany hereby elects to receive State Revenues for the Fiscal Year 2009­ 2010.

DATED AND EFFECTIVE THIS 9TH DAY OF JUNE 2010.

Passed by the Council: _

Approved by the Mayor: _

Effective Date: _

Mayor

ATTEST:

City Clerk

15 G:ICily ClerkiBudget'tstate.revenues.res. 201O.doc TO: Albany City Council

VIA: Wes Hare, City Manager

FROM: John R. Bradner, Fire Chief ~g

DATE: May 25, 2010, for the June 9,~010, City Council Meeting

SUBJECT: Amendment to Public Records Policy

RELATES TO STRATEGIC PLAN THEME:. An Effective Government

Action Requested:

City Council approval to amend the Albany Public Records Policy to allow the Fire Department to charge a minimum $7.00 fee for copies of public records and to repeal Resolution No. 5546.

Discussion:

On Febrnary 13, 2008, the City Council approved a Public Records Request Policy for the City, by Resolution No. 5546. The policy outlines fees for copies of public records, charging cents per copy.

Public requests for Fire Department records are generally received by mail from insurance companies, attorneys, or other agencies outside the city and/or state, which requires delivery of copies and return payment by mail. There is also generally research time by Fire Department staff to fulfill a public records request. The current fee for copies is not practical for the majority of public requests for Fire Department records as it would require the requesting agency to mail a check for as little as 25 cents.

The Fire Department is proposing a research fee of$7.00 to cover the first 30 minutes of research time and up to ten single-sided copies. Because Fire Department record requests are similar to report requests from the Police Department, the $7.00 fee was determined by the current non­ refundable minimum fee the Police Department charges.

Budget Impact:

Increase fee for copies ofFire Department public records to $7.00 for up to 30 minutes research time and up to ten single-sided copies.

JB:ljh Attachment

16 RESOLUTION NO. _

A RESOLUTION ACCEPTING THE AMENDED CITY OF ALBANY PUBLIC RECORDS POLICY, SETTING FEES, AND REPEALING RESOLUTION NO. 5546.

WHEREAS, Oregon State Statutes require that a public records policy be in place; and

WHEREAS, Oregon State Statutes allow for reasonable fees calculated to reimburse local government costs for providing those records; and

WHEREAS, the City of Albany, Oregon, adopted, by Resolntion No. 5546, a Public Records Request Policy on February 13, 2008; and

WHEREAS, the City of Albany Public Records Request Policy has been amended to meet the current needs ofthe City.

NOW, THEREFORE BE IT RESOLVED by the Albany City Council that the Public Records Request Policy (Attachment A) is amended to include reimbursable costs for the Albany Fire Department; and

BE IT FURTHER RESOLVED by the Albany City Council that Resolution No. 5546 is hereby repealed.

DATED AND EFFECTIVE rms 9TH DAY OF JUNE 2010.

ATTEST: Mayor

City Clerk

w:\Fire\Admin\Lorri\City Council\Public Records Request Policy Resolution May 201O.docx Page 1 of 1 17 ATTACHMENT A

CITYOF ALBANY PUBLIC RECORDS REQUEST POLICY

SECTION 1: Right to Inspect Public Records. Every person has a right to inspect any non-exempt public record held by the City of Albany. Requests for any records of the City must be made under the Oregon Public Records Law and in accordance with the rules of this City ofAlbany Public Records Policy.

SECTION 2: Application for Public Records Inspection. 1. All applications for inspection of non-exempt public records shall be addressed to the City Clerk or the Deputy City Clerk using the Public Records Request form (Sample 1). 2. All applications for inspection of Police Department Records shall be received at the Police Department using the attached request form and fee schedule (Sample 2 and 3). 3. Upon receipt of said application, the application may be referred to legal counsel to determine whether records requested are exempt from disclosure. 4. The City Clerk, or the Deputy City Clerk in the City Clerk's absence, is the official "Records Officer". The Records Officer shall take reasonable measures to preserve the integrity of the records. In this capacity, the Records Officer may adopt reasonable rules necessary to protect the records and prevent interference with the regular discharge ofduties ofthe City ofAlbany.

SECTION 3: Specificity of Request. In order to facilitate the public's access to records in the City's possession, and to avoid unnecessary expenditure of staff time, persons requesting access to public records for inspection or copying, or who submit written request for copies ofpublic records, shall specify the records requested with particularity, furnishing the dates, subject matter, and such other detail as may be necessary to enable City personnel to readily locate the records sought.

SECTION 4: Reasonable Opportunity to InsRect. 1. The Records Officer shall allow a person applying for inspection and/or copying of public records a reasonable opportunity to inspect the records during usual business hours. Reasonable opportunity does not mean the time frame set by the requestor, so long as the Records Officer provides access to the non-exempt records within a reasonable period of time. All records shall be inspected by the requestor and copied by City staffat the City ofAlbany place ofbusiness. 2. The Records Officer may furnish a certified copy ofthe record to a person requesting said record. Certification shall mean a statement on the cover sheet or last sheet ofthe copy certifying that the copy is a true and correct copy and signed by the Records Officer. 3. If the public record is maintained in a machine readable or electronic form, the custodian shall provide copies ofthe public record in the form requested, if available. If not available in the form requested, it shall be made available in the form in which it is maintained. 4. The public right to receive copies of public records shall be complied with by the Records Officer within a reasonable time. It is the policy of the City not to postpone or disrupt current and on­ going matters of city business to provide staff time for inspection or copying of non-exempt public records. Staff time shall be coordinated by the Records Officer and shall be provided within a reasonable period of time from the date the record request was made. 5. The City is not required to produce "lists" of records that are not already available in the form of a "list".

SECTION 5: Fees for Public Records. In order to cover its actual costs for responding to public records requests, the following fee schedule is adopted by the City: 1. Copies ofPublic Records: For 8.5 x 11 black and white, copies will be .25 cents per page; and .50 cents per page for duplexed. For 11 x 17 black and white, copies will be .50 cents per page; and

W: IFireL4dmiriILorri\City Councilskesolutton Attachment A.l.doc 18 $1.00 per page for duplexed. For 8.5 x II color, copies will be .50 cents per page; and $1.00 per page for duplexed. For Ilx17 color, copies will be $1.00 per page; and $2.00 per page for duplexed. Photo quality paper will be an additional charge. For the Fire Department, a $7.00 research fee includes up to ten single-sided copies. 2. Electronic Format: Electronic documents may include sound recording, video recordings, and electronic documents. These non-exempt public records will be provided in electronic format on CD or DVD at a cost of $5.00 each. Records that are already in audio tape form will be provided for $15.00 for the first copy and $5.00 for each additional tape. For records that are not already in electronic format and request to be converted, a Research Fee will be required as stated in this policy. 3. Copies ofMaps and other Nonstandard Documents: Charges for maps, large documents, or other nonstandard size documents, in the custodial possession ofthe Records Officer, shall be charged in accordance with the actual costs incurred by the City to reproduce them. 4. Research Fees: If a request for records requires City personnel to spend more than 30 minutes searching or reviewing records prior to their review or copying, the fee will be as follows: a. Up to 30 minutes Copy cost only b. 30 minutes to 2 hours Copy cost plus $25 per hour c. Over 2 hours Employee costs plus overhead The City will provide a written cost estimate to 'requestor and must receive confirmation that the requestor wants the City to proceed with the request. Cost estimates over $10 will be paid in advance. Ifthe actual time and cost are less than estimated, the excess money shall be refunded to the requestor. If the actual cost and time are in excess ofthe estimated cost, the difference shall be paid at the time the records are produced. 5. Archived Scanned Copies: Scanned copies archived in the City of Albany Laserfiche system and readily available to the Records Officer, may be sent to an email address provided by the requestor for the cost ofthe applicable research fee only. 6. Electronic Searches: For non-exempt public record requests including emails or other electronic files stored on any City network and not readily available to the Records Officer, the information shall be provided on CD/DVD. The cost will be $5.00 per CD/DVD plus $100 per hour for the research and copying time with a minimum ofone hour charge. 7. Additional Charges: If a request is of such magnitude and nature that compliance would disrupt the City's normal operation, the City may impose such additional charges as are necessary to reimburse the City for its actual costs ofproducing the records. 8. Reduced Fee or Free Copies: Whenever the City determines that furnishing copies of public records in its possession at a reduced fee or without costs would be in the public interest, the City may so authorize. ORS I92.440(4).

SECTION 6: Review of Original Records. If a request to review original records is made, the City shall permit such a review provided that research fees are paid in advance in accordance with SECTION 5, above. A representative ofthe City shall be present at any time original records are reviewed. At no time shall an original record of the City be removed from the City's files or the place at which the record is regularly maintained, except upon authorization of the City. If any person attempt to alter, remove, or destroy any original record, the City representative shall immediately terminate such person's review, and notify the City Attorney.

W: \Fire\AdminILorriICity CouncillResolution Attachment A.i.doc 19 PUBLIC RECORDS REQUEST FORM City of Albany Finance Department City Clerk's Office

For Police Records contact: 541.917.7680 Notice: Oregon Public Records Law grants each person the right to inspect the records of a public body (unless exempt from disclosure). ORS 192.440 (2) allows the public body a reasonable time to respond to a records request and ORS 192.440 (4)(a) authorizes the public body to charge fees associated with the requests. City of Albany fees are set by Resolution No. 5546 and are listed on the back of this form. Prepayment will be required for requests that exceed $10. ORS 192.440 (2) requires that a public body respond to a public records request with specific statements. You will be given a copy of this form when the City processes your records request to serve as that notification.

Your signature below acknowledges that you have read, understand, and accept financial responsibility for the fees associated with this public records request.

Signature: Date:

Requestor Information:

Name Mailing Address

City State Zip Code

Daytime PhoneNumber Fax Number Email address Document Information: Describe the information/records you are requesting being specific enough for the City to determine the nature, content, and department within which the records you are requesting may be located. Provide specific dates whenever possible. Use additional sheets of paper if necessary.

Return Form To: Mail or drop off: City Hall, Finance Dept, 333 Broadalbin Street SW, Albany, OR 97321 Fax' 541 9177511 Email' citvcierk@citvofalbanv net

For Staff Use

Date Request Received: Date copy of form provided: Staff Name: Dept: Via:O MailO Email 0 Fax 0 Pick up at City Hall

This Records Request: - - Was completed on (date): - Was referred to the City Attorney on (date): - Will require more time to process. (Estimated completion date): - Will exceed $10 so will require prepayment. (Estimated amount due prior to completion): - Was unable to be completed because the City is not in possession of the records. - Was unable to be completed because the records are exempt under state or federal law. - Other:

20 PUBLIC RECORDS FEES City of Albany Finance Department City Clerk's Office

SECTION 5: Fees for Public Records. In order to cover its actual costs for responding to public records requests, the following fee schedule is adopted by the City: 1. Copies of Public Records: For 8.5 x 11 black and white, copies will be .25 cents per page; and .50 cents per page for duplexed. For 11 x 17 black and white, copies will be .50 cents per page; and $1.00 per page for duplexed. For 8.5 x 11 color, copies will be .50 cents per page; and $1.00 per page for duplexed. For 11x17 color, copies will be $1.00 per page; and $2.00 per page for duplexed. Photo quality paper will be an additional charge. For the Fire Department, a $7.00 research fee includes up to ten single-sided copies. 2. Electronic Format: Electronic documents may include sound recording, video recordings, and electronic documents. These non-exempt public records will be provided in electronic format on CD or DVD at a cost of $5.00 each. Records that are already in audio tape form will be provided for $15.00 for the first tape and $5.00 for each additional tape. For records that are not already in electronic format and request to be converted a Research Fee will be required as stated in this policy. 3. Copies of Maps and other Nonstandard· Documents: Charges for maps, large documents, or other nonstandard size documents, in the custodial possession of the Records Officer, shall be charged in accordance with the actual costs incurred by the City to reproduce them. 4. Research Fees: If a request for records requires City personnel to spend more than 30 minutes searching or reviewing records prior to their review or copying, the fee will be as follows: a. Up to 30 minutes Copy cost only b. 30 minutes to 2 hours Copy cost plus $25 per hour c. Over 2 hours Employee costs plus overhead The City will provide a written cost estimate to requestor and must receive confirmation that the requestor wants the City to proceed with the request. Cost estimates over $10 will be paid in advance. If the actual time and cost are less than estimated, the excess money shall be refunded to the requestor. If the actual cost and time are in excess of the estimated cost, the difference shall be paid at the time the records are produced. 5. Archived Scanned Copies: Scanned copies archived in the City of Albany Laserfiche system and readily available to the Records Officer, may be sent to an email address provided by the requestor for the cost of the applicable research fee only. 6. Electronic Searches: For non-exempt public record requests including emails or other electronic files stored on any City network and not readily available to the Records Officer, the information shall be provided on CD/DVD. The cost will be $5.00 per CD/DVD plus $100 per hour for the research and copying time with a minimum of one hour charge. 7. Additional Charges: If a request is of such magnitude and nature that compliance would disrupt the City's normal operation, the City may impose such additional charges as are necessary to reimburse the City for its actual costs of producing the records. 8. Reduced Fee or Free Copies: Whenever the City determines that furnishing copies of public records in its possession at a reduced fee or without costs would be in the public interest, the City may so authorize. ORS 192.440(4).

Copies per page Electronic Formats .25 (.50 for duplexed) 8.5 x 11 black & white 5.00 Each DVD or each CD .50 (1.00 for duplexed) 11 x 17 black & white 15.00 First audio tape .50 (1.00 for duplexed) 8.5 x 11 color 5.00 Each add'i audio tape 1.00 (2.00 for duplexed) 11 x 17 color Actual cost to reproduce Video tape Additional charge Photo quality paper Additional charge See: Research Fees Research Fees Maps & Nonstandard Documents UPto 30 minutes Copv costs onlv Actual cost for reproduction 30 minutes to 2 hours Conv cost plus $25 an ho Electronic Searches Over 2 hours Employee cost plus overhead $100 per hour One hour minimum Police Department Fire Department Refer to Police Department Records Request Form $7 research fee includes up to ten slnole-slded copies

Form revised.' 4-26-10 21 Sample 2 ALBANY POLICE DEPARTMENT REQUEST FOR COPIES

Requests can take un to two' eeks to complete and are nrocessed m the order thev are received Today's Date: Requester Name:

Requester Phone Number: IRequester Agency (if applicable): Requester Cell Phone Number:

Email Address (ifyou wantcontact by email):

Requester Address, City, State & Zip Code:

Requester Signature:

Circle One: Auto Accident TheftlBurglary IOther: Incident Number: Incident Location: Date ofIncident: Time ofIncident: IOfficer: Person(s) Involved: (Onlyusc insured persons nameift'hc insured person wasinvolved asthe driver/victim):

Non-refundable minimum $7.00 fee for report requests Amount Enclosed: includes recordssearch,and up to ten single-sided or five double-sidedoases Non-refundable minimum $10.00 fee for tape requests include records search and up to 15 minutes of tape reproduction Additional Amount Due at Pickup: _ MailingFee Included: Yes No (See reverse side for fee schedule)

We cai»iot supplyth~i'ej)'prlyQuieqliestedforthii;fQllb\ViiigteiJsori(S}:;;, ',i'ce," ',"Y,>; '" ."i '" '" "" Cllsh,p(checkJor" th!:l;coiie¢tiili:fQUilty/ai:ijiotericr6i:ie4';',\',~;:i?;' ,;hi:'C;;;,',"'c''';:',,; ,' ",. ". AclditioniJlmQheViriJgeanihtihf.6f$,<:;\.(;";,,,'is;iieeged:tgcomp!ete yourtequesf;; ',,' "',' ','

"',.,', , ;.C;CjIYii\ttonieYeOffice .,.l?,0;J;lci){4(j;Al1Jiiny,OR9Z~Zl,(5,4;lr92o~~~M,,<'.... ,'<" .'" ..•..•.. \ r: ••·13~n.tpnCo)intviDistri<;fAttoiiiey.-, •• 12(i,NW;41?;Cotvallisi0r'973~(j'(~4Ic'7Q.6-6815)·.··'.

Payment Received By: I Cash 1 I Check: Date: I I Counter: I 1Clerk: Mail: I

A41

22 Sample 3 ALBANY POLICE DEPARTMENT RECORDS FEES &PROCEDURES

All request s require. a non-refundable adva nc e navment of$7 00 to cover research fiees Police Renorts Police IncidentReports $ 7.00 Research fee includesup to ten single-sidedcopies, Computerized Incident Report (CAD) Miscellaneous Police Documents Lengthyreportsrequiting over 15 minutes to processwill accrue additional chargesat a rate of $28.00 per hour plus additionalcopy charges. Conv charzcs Additional $.10 (cents)per side after ten nazes Postagefor mailing retlons $ 2,00 for un to ten pages, $ .10 (cents) ner page after ten pages. Records Checks (Records onlv available back to 199m Person $ 7.00ner nerson Lettersof Clearance $ 7.00 nernerson Location $ 7.00 ner 12-monthneriod Statistics $ 7.00ner reouested activitv Postage for mailingrecords checks $ 2.00 for up to ten pages, $ .10 (cents)per page after ten pages. Sunnlemental Fees (in addition to the fees identified above) Photovranhs Photos saved to CompactDisc $10.00per CD Photos minted ontlaller $ 2.50 ner sheet (upto4 nhotos per sheet) Photos reproduced from negatives $10.00 for first 24 prints/persingle role, $ .50 (cents) for each additionalnrint Postagefor mailingphotographs $ 2.00 forup to ten photos/pages. $ .10 (cents) per photo/pageafter ten pages, $ 2.00 per CD Recordlnas CompactDisc, DVD or $10.00 forfirst 15minutes of staff time, Cassettetaoe recordings $7.00 for each additional 15 minutes Postage for mailing recordings $2.00ner tape/CDfDVD

A request for police records infimnation call take up to 2 weeks to process. Requestedinformation will be available for pickup at the front counterofthe AlbanyPolice Departmentor may be mailed to you for an additional fee. All itemsmust be picked up within 30 days after notificationthat the iufonnation is ready, otherwiseit will be destroyed and anotherrequestwill need to be made. *Requestscan be completed in a timelymanner if the data you provide is complete and accurate. Please provide the full name ofthe individual, their date of birth, driver's licensenumber and social security number. Any specialrequests not indicatedabovewill be charged at a minimumhourly rate of $28.00/perhour,plus additionalcopy chargesand at the discretionofthe Albany Police Department. We appreciate your cooperation and assistance in makingthis process efficient.

1117 Jackson SE Albany, OR 97322 541-917-7680

A41

23 !C~~ TO: Albany City Council v4/J3eihiJ• VIA: Wes Hare, City Manager ..... ~,. FROM: Stewart Taylor, Finance Director/

DATE: June 1,2010 for the June 9, 2010 City Council Meeting

SUBJECT: Declaring intent to reimburse expenditures for Timber Ridge Street

RELATES TO STRATEGIC PLAN THEME:. Effective Government

Action Requested:

By resolution, declare the City's reasonable intent to reimburse itself with the proceeds of tax­ exempt financing for expenditures incurred prior to the issuance ofthe financing.

Discussion:

On May 28, 2008, the City Council established two Local Improvement Districts to provide water, sewer, and street improvements on Timber Ridge Street. The City also entered into an intergovernmental agreement with Greater Albany Public Schools (GAPS) and authorized the district to act as project manager for the north LID improvements. The City intends to complete the south LID improvements before school begins in September, 2010.

GAPS provided interim financing for the north LID improvements with available bond proceeds. In a separate resolution on tonight's agenda, the City Council will consider two interfund loans. One loan will be used to pay GAPS for any interim financing that it provided which exceeds its final assessment. The second will provide interim financing to complete the south LID improvements.

The interfund loan is intended to be paid in full in Fiscal Year 20 I 0-20 11 together with a rate of return equal to the City's investment rate. Proceeds to pay back the loan will come from conventional tax exempt financing or through a revolving loan fund established with PepsiCo settlement proceeds.

Section 1.150-2 ofthe US Treasury Regulations requires the City to declare its reasonable official intent to reimburse prior expenditures with proceeds of a subsequent borrowing. The purpose of this resolution is to satisfy the reimbursement declaration requirement and preserve the tax­ exempt financing option for the Timber Ridge Street improvements.

Budget Impact:

There is no budget impact to declare the City's intent.

ST Attachment: resolution

G:\MaryICCMemos\LlD Reimbursemeru.docx

24 RESOLUTION NO. _

A RESOLUTION DECLARING AN INTENT TO REIMBURSE EXPENDITURES FOR WATER, SEWER, AND STREET IMPROVEMENTS ON TIMBER RIDGE STREET WITH TAX-EXEMPT FINANCING.

WHEREAS, the City Council (the "Council") of the City ofAlbany, Linn and Benton Counties, Oregon, (the "City"), a municipal corporation ofthe state ofOregon, has determined that a need exists for the City to finance the costs of capital construction and capital improvements of Timber Ridge Street (the "Project"); and

WHEREAS, the costs ofthe Project are estimated to not exceed $4,100,000; and

WHEREAS, the City expects to finance the costs ofthe Project with the proceeds of subsequently issued debt, the nature of which has not yet been determined by the City (collectively, the "Tax-Exempt Financing"), the interest on which shall be excluded from gross income under Section 103 ofthe Internal Revenue Code of 1986, as amended; and

WHEREAS, the City anticipates incurring expenditures (the "Expenditures") to finance the costs of the Project prior to the issuance of the Tax-Exempt Financing and wishes to declare its official intent to reimburse itself for any Expenditures it may make from its General Funds or Enterprise Funds on the Project from the proceeds ofthe Tax-Exempt Financing; and

WHEREAS, Section 1.150-2 of the Treasury Regulations (the "Treasury Regulations") requires the City to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing.

NOW, THERFORE, BE IT RESOLVED that the City ofAlbany hereby declares as follows:

1. Its official intent to reimburse itselfwith the proceeds of the Tax-Exempt Financing for any of the Expenditures incurred by it prior to the issuance of the Tax-Exempt Financing. 2. This Resolution shall take effect immediately upon its adoption by the City Council.

DATED AND EFFECTIVE THIS 9TH DAY OF JUNE 2010.

Mayor

ATTEST

City Clerk

G:\MaryIResolutions & OrdinanceslLlD Retmbursement.docx

25 !C'ktk TO: Albany City Council • VIA: Wes Hare, City Manager vA!JjtihiiP. -':lP Diane Taniguchi-Dennis, P.E., Public Works Director FROM: Mark W. Shepard, P.E., Assiztanublic Works Director / City Engineer \\'\u6 James Delapoer, City Attorney K

DATE: June 3, 2010, for the June 9, 010, City Council Meeting

SUBJECT: ST-09-03, Oak Street Local Improvement District (LID)

RELATES TO STRATEGIC PLAN THEME:. Great Neighborhoods • Effective Government

Action Requested : At the May 12,2010, City Council Meeting, Council directed staff to bring back an Engineer's Report and Resolution for the formation of a Local Improvement District (LID) for the improvement ofOak Street between Pacific Boulevard and Queen Avenue .

Discussion : ScopeofImprovements Council chose to direct the formation of an LID that would complete an extension of Oak Street between Pacific Boulevard and Ninth Avenue and provide for the improvement to Oak Street between Ninth Avenue and Queen Avenue to full urban standards. The total estimated project cost is $5,055,000.

AssessmentMethodology The LID boundary and assessment methodology have been modified in accordance with the direction given by Council at the May 12, 2010, Council Meeting.

The boundary of the district for road improvements includes only the Kinder Park Property, the Lowe's team properties, and the Ping 's Restaurant property. Attachment 1 is a map showing the LID boundary.

The project cost s will be assessed by agreement of the parties within the LID boundary. The plan developed by the Lowe' s development team and approved by Council splits the assessment methodologies into two parts . One methodology will govern the costs associated with the punch through and another methodology will govern the work between Ninth Avenue and Queen Avenue.

Punch Through: The punch through improvement is estimated to cost $2,618,000 . For the punch through improvements, the City will contribute $2,I00,000 (81%) in Transportation System Development Charges (TSDC) funds to the project. The City will also contribute an additional $83,740 (3%) in other funding. The remaining cost will be paid by the Lowe's group (Lowe's, Consers, and Perlenfeins). The estimated contribution from the Lowe's development properties is $434 ,260 (16%). The Lowe's methodology does not attribute the Lowe 's payment to specific properties, but is a payment from the Lowe's Development Team. Neither the City nor the methodology dictates how the Lowe's group apportions this cost. It is assumed the Lowe's group apportions this cost in accordance with an internal agreement.

26 Albany City Council Page 2 June 3, 2010, for the June 9, 20 I0, City Council Meeting

The Perlenfein property that will be purchased for use as right-of-way for the punch through has been the subject of a DEQ-regulated cleanup for contamination, and there is a realistic risk of encountering contaminated soil during construction ofthe improvements.

The City has agreed to purchase the punch through right-of-way property for the asking price. This price reflects property that is free from additional remediation and construction costs due to soil contamination. In order to ensure no one else is burdened by these costs, the property seller has agreed to hold the City harmless for any costs the project incurs associated with contamination on the site. If contamination is encountered during design or construction, the property owner will be given an opportunity to clean up the contamination at its cost. They will also be responsible for any costs the project incurs for contractor down time or other costs related to contamination found on the property. As noted later in the memorandum, a purchase contract will provide the specifics of the responsibilities related to contamination encountered on the property.

Oak Street - Ninth Avenue to Oueen Avenue: The street project cost for the improvements to Oak Street between Ninth Avenue and Queen Avenue is estimated to cost $2,180,000. The City will pay 65% of the costs with TSDCs. This contribution is estimated to be $1,417,000. The City will contribute an additional lump sum of $195,270 (9%) above and beyond the TSDC payments. This lump-sum payment represents an estimate ofwhat the Sadri/Grazul, Glasser, and partial church assessments would have been under the Lowe's methodology if the properties had been included in the LID. The Lowe's group will pay a lump sum of $31,776 (1.5%). This lump-sum payment represents an estimate of a portion of what the assessments would have been for the church under the Lowe's methodology ifthe property had been included in the LID.

The balance of the project costs after the contributions above will be assessed to the Kinder Park Property and the Lowe's property based on an average of an area assessment and a frontage assessment. The assessment against the park is estimated to be $312,800 which represents 14% of the project costs. The Lowe's site properties assessments are estimated to be $229,800 which represents 10.5% ofthe project costs.

The Ping's restaurant will be assessed a flat $10,000 as a contribution for water line improvements. The remainder of the water line costs ($247,000) will be paid for by the City. The Ping's Restaurant property will not be assessed for any street improvements. However, the property owner has agreed to donate any right-of-way at no cost required for the improvements.

An assessment roll showing the estimated total project costs and assessments is included as Attachment 2. Under the Lowe's proposed methodology approved by Council, the City will be contributing an estimated $4,355,800 to this project which is 86% of the total project costs. The Lowe's development team is contributing $699,200 which is 14% of the project costs.

Sources ofCity Funding TSDC Funding: The majority of the City contribution for this project will be TSDC funds. Under the proposed methodology, $3,517,000 in TSDC funds will be used for this project. The current TSDC reserve balance is approximately $6 million. Applying the TSDC funds to this project will use 59% of the current balance ofTSDC funds and leave a balance of $2,483,000 in the TSDC fund for other projects.

Additional City Contribution: Under the methodology approved by Council, the City is contributing $279,000 in addition to the $3,547,000 in TSDC funds to the project. A funding

27 Albany City Council Page 3 June 3, 2010, for the June 9,2010, City Council Meeting source for this contribution has not been identified. The final decision on how to fund this contribution does not need to be made until the final project assessments, which are anticipated in late calendar year 2011. However, earlier Council direction will help staff plan and budget capital expenditures in the interim. There are several options available to Council for funding this obligation. There is not adequate funding available in the Street Capital and Restoration Fund to provide for the City contribution. Following is a briefdiscussion of potential funding sources.

I. SVC Litigation Settlement - At the May 12, 2010, Council Meeting, a councilor asked that the proceeds that the City received as settlement in the SVC litigation be considered as a source for the required funding. The City received approximately $18.2 million in the settlement. Council has directed that discussion of the use of these funds be delayed until July. There are no restrictions on these funds, so they are available for use on this project should Council choose to do so. However, use of these funds for this project does not provide for a larger citywide benefit. 2. General Fund Money - Council can choose to use General Fund money. However, the General Fund is constrained due to the current economic strain on the City budget. 3. STP Funds - The City receives an annual allotment of STP exchange funds from ODOT for use on street improvement projects. The annual allotment varies with population and available funding, but it has averaged approximately $400,000 recently. In the past the City has pooled multiple years of these funds in order to complete larger street projects. An example of a project completed with these funds is the Waverly Drive reconstruction between Grand Prairie and 36th Avenue that was completed a couple years ago. The Jackson Street reconstruction project identified in the CIP for 2012/2013 is anticipated to be funded with STP funds. Use of STP funds on Oak Street could delay the Jackson Street project one year to 2013/2014.

Kinder Park Assessments: Under the approved assessment methodology, it is estimated the Parks Department will be assessed $312,800. There is no identified funding for payment of this assessment. The Parks Department will need to finance the payment of this assessment over a 10-year period. Parks will need to look for annual project savings over the finance period in order to make the annual payments on this assessment.

Street Project Cost Savings/Overruns Projects are not usually completed for the exact cost estimated in the Engineer's Report. Staff has negotiated with the Lowe's development group regarding how project savings or over runs will be handled for the street project. If the final project costs are less than estimated, the TSDC contribution will be reduced by the percentage the project is under the estimate. The remaining project savings will be equally shared between the assessed properties. Following is an example of how savings would be distributed if the project is completed for a cost of $4,318,200 (10% below the estimate).

Original Estimate $ 4,798,000 Actual Cost (10% lower) $ 4,318,200 Total Project Savings $ 479,800 10% reduction in TSDC contribution $ 351,700 Remaining Savings Balance to distribute $ 128,100 Lowe's Savings $ 64,050 City Savings $ 64,050

28 Albany City Council Page 4 June 3, 2010, for the June 9, 2010, City Council Meeting

If the project costs are higher than estimated, the project costs above the Engineer's Report estimate will be shared equally between the assessed properties. Since the TSDC funds are capped by the TSP and SDC methodology, TSDC contributions cannot be increased above the maximum. Following is an example of how cost increases would be distributed if the project is completed for a cost of$5,277,800 (10% above the estimate).

Original Estimate $ 4,798,000 Actual Cost (10% $ 5,277,800 Total Project Over $ 479,800 Lowe's Additioanl Participation $ 239,900 City's Additional Participation $ 239,900 Increase in TSDC participation $ 0

Remaining Agreements and Commitments

On June 2, 2010, staff conducted lengthy negotiations with representatives of the Lowe's Development Team and their attorneys concerning a number of details and refinements which must be incorporated into binding agreements before right-of way purchase and construction.

Indemnification Agreement. As noted above, the methodology envisions an indemnification agreement between the owners of the punched-through right-of-way (Perlenfeins) and the City. That indemnification agreement will require that the property owners agree to personally hold the City harmless from any remediation costs resulting from past contamination (if any). The City will also be protected from extra costs associated with delays in construction which result from contamination as well as claims ofliability for violation ofany laws applicable to public contracts in the event that the property owners elect to perform the required remediation themselves.

Lowe's Infrastructure Funding Agreement. Lowe's has agreed to enter into an Infrastructure Funding Agreement with the City regarding the proposed improvements. The agreement will cover commitments of Lowe's and the City regarding completion of improvements and opening of a store. The agreement will call for substantial liquidated damages in the event that Lowe's does not build the store as promised and will also obligate the City to pay damages to Lowe's if the City unreasonably delays completion of any infrastructure required for Lowe's opening and thereby cause Lowe's delay damages.

Acceptance of Assessment Methodology. The Lowe's Development Team members (Perlenfeins, Consers, and Lowe's) will be required to acknowledge their consent to the assessment methodology set forth in this report before the City proceeds further.

The City Attorney and City Manager must be satisfied with all terms of the agreement before the City will be obligated to proceed further.

Timing Considerations Upon satisfactory execution ofthe agreements above, the City will begin project design including progression analysis. Lowe's has advised City staff that issuance of the necessary ODOT access permits is a requirement for final property purchase. If the City performs design work and Lowe's thereafter fails to purchase the required property, the LID will be terminated. The design work will still have value for the property owners in their subsequent development efforts and the

29 Albany City Council Page 5 June 3, 2010, for the June 9, 2010, City Council Meeting

City's costs in preparing the design and progression analysis shall be assessed to the owners of the proposed Lowe's site.

Upon Lowe's purchase of the proposed site, the obligations of the infrastructure funding agreement will mature. At this point, the City will complete the purchase of the Perlenfein property subject to the terms of the indemnification. The purchase agreement will require Perlenfeins to clear the purchased right-of-way at their own cost. The timing of the City's purchase will be a determining factor in the timing of the City's commitment to complete infrastructure improvements. The City will not be obligated to advertise for construction bids or incur any other expenses until the right-of-way site has been cleared of improvements and the infrastructure funding agreement has obligated Lowe's to completion of the project.

Budget Impact: The approved method for paying for this project will require an estimated $4,379,200 in total funds from various City sources. Following is a breakdown ofthe funding sources.

Fund Name Fund Number F Transportation SDC Projects 250-50-2702 $ 3,517,000 Parks SDC Projects $ 312,800 Other City Funding for Streets TBD $ 279,000 Water Svstern Capital projects 615-50-2308 $ 247,000 Total $ .1 ~~~ Ron

The remaining balance ofthe project costs of $699,200 will be paid by properties in the LID.

MWS:kw:prj Attachments (2)

G:lEngineer\StreetsIST-09-03, Oak Street LID\AfCResoultion 3 May 26 20/O.ST-09-03-for merge.docx 30 rr"i I :-1 . - 16tl1"Ave. .. I.· -I---·II1T I - .UlJJJJI :'J~~ Legend .- .. --- ,---~-r.-- c::::I LI0 Soundary

Oak Street Local Improvement District " Potential Bounda ry

Attachment 1 Fl~e IS"~ P1ro;ect0/0312008Leeto 1:10.n51 PM \\4.LDERAAN\Dala "ored\GIS\Engineering\Oal< StreetUD\Oal:.l!Omxd

City of Albany . 333 Broadalbin $ 1.SW, Albany. Oregon 97321 (541) 9 17-7676 Fed 31 Methodolo . TRIP GENERATION INITIAL ENGINEER'S REPORT CITY OF ALBANY ASSESSMENT CALCULATION SHEET Street Street Street Street Total ST-09-03, Oak Street LID Assessor's MaD Water Area Area Frontace Frcntaqe Averaoe Estimated Estimated Assessments Name and Tax Lot Assm't Acre Assessment feet Assessment Assessment Assm't December 2009 NET ASSESSABLE COSTS ALBANY CITY OF 11S03W08BC01400 11.97 $271,262,98 1,119.56 $354,304.66 $312,783,82 $312,783.82 Tolal Water Costs $257,000.00 BARRETT BROS 11S03W08BB04200 0,00 $0.00 0.00 $0.00 $0.00 $0.00 CitvFundinq (Water $247,000.00 J CONSER & SONS LLC 11S03W08BC01201 1.61 $36,485.66 150.99 $47,783.47 $42,134.57 $42,134.57 Net Water to assess $10,000.00 J CONSER & SONS LLC 11S03W08BC01202 4,68 $106,057.70 0.00 $0.00 $53,028.85 $53,028.85 J CONSER & SONS LLC 11S03W08BC01300 0,51 $11,557.57 130.00 $41,140.81 $26,349.19 $26,349.19 Oak Street Extension $2,618,000.00 KILLEN RANDY, SABRA 11S03W08BC01000 3,10 $70251.90 0.00 $0.00 $35,125,95 $35,125.95 City Participation SDC $2,100,000.00 LEE CHUNG PING, LAI KUEN 11S03W07AD00100 $10,000.00 0,00 0.00 0.00 $0.00 $0.00 $10,000.00 lowe's Pro Grou $434,258.00 PERLENFEIN PHYLLIS I, EDWARD R TR 11S03WOSBC01100 1.78 $40 38,19 293.00 $92,725.06 $66,531.62 $66,531.62 OtherCi Partici ation I $83,742.00 Net Remainder to Assess $0.00 TOTALS $10,000.00 23,65 $535,954.00 1,693.55 $535.954.00 $535,954.00 $545,954.00 Oak st. 9th to Queen $2,180,000.00 CI Participation (TSDC $1,417,000.00 Other City Participation $195,270.00 Lowe's PropertY Group $31,776.00 Net remainder to Assess $535,954.00

Total Assessable Costs $545,954.00

UNIT ASSESSMENTS

Oak Street Water Est. Net Cost $10,000.00

Oak Street 9th to Queen Est. Net Cost $535,954.00 Acre' 23.650 Assessment oar Acre $22,661.90 Frontaqe 1,693.55 Assessment rfoot $316.47

,

co G:\Engineer\Streets\ST~09"()3, '" Oak Street L1D\Assessment Spreadsheet Per Council Direction May 26 201 O.xls Attachment 2 RESOLUTION NO. _

A RESOLUTION FOR THE ADOPTION OF ENGINEERING AND FINANCIAL INVESTIGATION REPORTS, AUTHORIZATION TO SECURE EASEMENTS AND RIGHT-OF-WAY, TO OBTAIN BIDS, AND TO ISSUE DEBT FOR THE CONSTRUCTION OF ST-09-03, OAK STREET LOCAL IMPROVEMENT DISTRICT.

WHEREAS, the City Council held a public hearing regarding the Engineer's Report at the May 12, 2010, City Council Meeting and the formation of a Local Improvement District for the improvements of Oak Street; and

WHEREAS, the City Council directed that staff proceed with an assessment methodology developed by the Lowe's development team and said methodology is set forth in the Engineer's Report dated June 3, 2010.

NOW THEREFORE BE IT RESOLVED that in the Engineer's Report ofthe Public Works Director dated June 3, 2010, and the Financial Investigation Report of the Finance Director filed with the City Recorder on January 21,2010, concerning ST-09-03, Oak Street Local Improvement District, are hereby adopted.

BE IT FURTHER RESOLVED that, upon negotiations and execution of the agreements and commitments identified in the above referenced Engineer's Report to the satisfaction ofthe City Manager and City Attorney, the Council authorizes the Mayor and City Recorder to sign agreements on behalf of the City of Albany for the purpose of obtaining easements and right-of-way to construct the said improvements, direct the City Manager to obtain bids for the construction of said projects as required by law, and authorize the Mayor and City Recorder to make, issue, and negotiate debt to finance the design and construction ofthe improvements.

DATED AND EFFECTIVE THIS 9TH DAY OF JUNE 2010.

Mayor

ATTEST:

City Clerk

G:\EllgilleerlSlreetsIST-09~03, Oak StreetLIDlResoJlltiOll No 3 Final.docx 33 ~ !C~~~ TO: Albany City Council VIA: Wes Hare, City Manager . Diane Taniguchi-Dennis, P.E., Public Works Director c(,~

FROM: Mark W. Shepard, P.E., Assistant Publ~ksDirector / City Engineer JeffWoodward, P.E., Civil Engineer II Jv2'

DATE: May 28, 2010, for the June 9, 2010, City Council Meeting

SUBJECT: ST-08-04, Infrastructure Improvements - Somerset to School Public Hearing and Submittal ofFinal Engineer's Report

RELATES TO STRATEGIC PLAN THEME:. Great Neighborhoods

Action Requested:

Staffrequests that Council accept the Final Engineer's Report and Financial Investigation Report, and adopt the attached resolution to schedule a public hearing for June 23, 2010. Final project costs and distributions of the final assessments for the Local Improvement District (LID) project ST-08-04, Infrastructure Improvements - Somerset to School, will be considered.

Discussion: Background This project involves two large parcels, located at the east end ofSomerset Drive and south along the newly constructed portion of Timber Ridge Street. The LID Boundary map for these parcels is shown on Attachment A.

Greater Albany Public Schools (GAPS) received a Notice ofDecision (NOD) for the construction of a new school north of Knox Butte Road on August 29, 2007. An anticipated private development project (Brandis Village) was going to be constructed between the school site and Knox Butte Road. However, the developers of Brandis Village withdrew their application, leaving the School District with a significantly increased responsibility to complete off-site public infrastructure improvements in order to serve the new school. The School District approached the City with the idea of forming this LID to facilitate the construction of the public improvements while distributing the project costs equitably among the properties receiving special benefit from the project.

To meet a very aggressive time frame in order to construct the new school and have it open in fall of 2009, it was determined that GAPS would use their existing engineering consultant and construction contractor to complete the LID improvements acting as the City's agent under an Intergovernmental Agreement (IGA). The improvements included installation of sewer, water, street, and storm water infrastructure from the end of Somerset Drive to the southern boundary of the school parcel along Timber Ridge Street.

Improvements Improvements that were constructed to support the new school and future development of the Brandis parcel include approximately 1,850 feet of new street with related storm drainage improvements, 400 feet of 24-inch water line, 1,600 feet of 12-inch water line, 400 feet of 15­ inch sanitary sewer, and 1,600 feet of 12-inch sanitary sewer.

34 Albany City Council Page 2 May 28,2010, for the June 9, 2010, City Council Meeting

Assessment Methodology The two properties affected by this LID are the Brandis parcel and the GAPS parcel. The method of assessment is consistent with the area basis methodology recommended in the Initial Engineer's Report. The Brandis parcel is assessed for an area 150-feet deep, a standard lot depth, along the full length of the property fronting the north and east sections of Somerset Drive and Timber Ridge Street, and for the entire developable property area southwest of these streets. The GAPS property will be assessed for their entire property area. There are areas within the LID boundaries that are dedicated as greenways. These areas are undevelopable and as such have been removed from the assessable area.

Summary ofFinal Project Costs The costs for engineering, legal, and administration services along with project financing costs have been added to the construction costs to determine the total final project cost of $3,786,304.22. The City is participating in the project by contributing water and sewer SDC funds in the maximum amounts identified in the Initial Engineer's Report.

The final street and storm drainage improvement costs are $1,934,044.19. The final costs for the water improvements are $319,564.08 with a City contribution of$76,000. The final costs for the sewer improvements are $1,532,695.95 with a City contribution of$16,000.

The total final project costs are summarized below. These figures and the net assessable cost distribution are shown on the assessment computation sheet, Attachment B. Street and Strom Drainage $1,934,044.19 Water $319,564.08 Sewer 1,532,695.95 Total Project Cost $3,786,304.22 City - Water SDC Contribution (76,000.00) City - Sewer SDC Contribution (16,000.00) Net Assessable Cost $3,694,304.22

The school district utilized Ed Fitz-Patrick, Senior Project Manager for Heery International, Inc., to keep the project on schedule. The project was successfully completed in time to meet GAPS requirement that Timber Ridge School was open to receive students in September 2009. The total project cost is approximately $479,000 higher than estimated in the Initial Engineer's Report. Mr. Fitz-Patrick is available to answer any questions about the project.

Budget Impact:

City participation with water and sewer SDC funding is to pay over-sizing costs of the water and sewer main lines. The net cost of the improvements will be assessed to the benefiting properties.

JMW:kw Attachments (4)

G:\EllgilleerlSlreelsIST-08-04 GAPSICC Memo LID Res 4.sI0804.docx 35 ~ LID Boundary 1-- I II

I---....~---....~ 11S03W038 00100

GAPS School Site

11S03W038 00102 f- L

f- 11S03W038 00101 I II I III

llS03W03C 00100

/

'--- C LID Boundary <,

LID Boundary: ST-08-04. Infrastructure Improvements, Somerset to School Attachment A

N Engineering JeffWoodward 1 inch =602.601454 feet

... ""d_" ..._'_... _ ~_...~_ ...... _ --..... w_- __._..-....., _--_ ... ==:.:.==~~.=--.::==.:..:-_....d_d"'-_ .. __ ...... _d_.~._~ A ~d.:.===:.':.. ..."":'.__ .... ATTACHMENT B FINAL ENGINEER'S REPORT ST-08-04,"Infrastructure Improvements - Somerset to School" I CITY OF ALBANY

Street Total San Sew Total Water Total Total I ST-08-04 I

Assessor's Map Unit Street & St Dr Unit San Sew Unit Water i Estimated FinalAssessments ---~-- , Name Tax Lot (Ac) Assm't (Ac) Assm't I (Ac) Assm't Assm't June 2010 , NET ASSESSABLE COSTS ----- Great~~~~any Public 11S03VV03B 00102 20,28 $1,123,207,79 20,28' $880,830,29 20,28 $141,451,30' $2,145,489,39 Streetand Strom Drain $1,934,044,19 School Dist Sanitary Sewer $1,532,695,95 --,"'_- Water $319,564,08

--~-----_. Total ProjectCost $3,786,304,22 • ---'~----"'--'-'--'--"- , -- CityParticipation: San Sew SOC ($18,000,00) Evelyn F Brandis 11S03VV03B 00100 14,64 $810,838,40 14,64 $635,865,66 14,64 $102,112.78' $1,548,814,83 CityParticipation: WaterSOC ($76,000,00) ---- Trust 1 Net Assessable Cost $3,694,304,22 I , ... _-- I --_. ---_ , NET UNIT ASSESSMENTS ---~- ---.._- . -- - , ---- , ---- Street and Strom Drain , , I Est. Cost $1,934,044,19 : -"- -,.---_._--- Unit 34,92'Ac ------,- - --- Unit Cost $55,385,00 per Ac I , --~------, Sanitary Sewer , - Est. Cost $1,532,695,95 -_.. City Particip, ($16,000,00) $1,516,695,95 .------! Net Cost

- __-0" Unit 34,92 Ac $43,433.45 ----- ....- Net Unit Cost perAc

-~--_._--

, Water ~~--_. Est. Cost $319,564,08 ------_.._---- - City Particip. ($76,000,00) ~~---- Net Cost I $243.564,08 I I I ! Unit 34,92'Ac TOTALS 34,92' $1,934,044,19 34,92 $1,516,695,95 34,92 $243,564,08 $3,694,304,22 Net Unit Cost $6,974,92 per Ac

co..... G:IEngineerIStreetsIST-08-04 GAPSIFinal Assessment Cales, Attachment B,st0804,xls FINANCIAL INVESTIGATION REPORT \. ST-08-04, Infrastructure Improvements - Somerset to School UD (As ofJune 1, 2010) Page 1 of 1

10 YEAR OWNER OF RECORD PROPERTY % OF I TOTAL BOND TRUECASHVALUE200712008 OTHER I ASMNT MONTHLY DESCRIPTION PROJECT ASSESSMENT MAXIMUM LAND I'MPROVMENTSI TOTAL ASMNTS % TOrev PAYMENTS I AT6.55%

i 1 Brandis,Trust1, EvelynF 11S03W03B00100 41.92%1 1.548,814.83 3,431,520 11,715,760 •, 1.715,760 90.27% 17625.6 c/oJohn S Brandis, et al Site: PO Box 1087 Acreage, Lot Corvallis, OR 97339 I

GreaterAlbanypubncSChool District j 11S03W038 00102 58.08% 2.145.489.39 12,919.260 5.610.000 549.630 16,459.630 0.00% 24415.79 efoRussell Allen Site: 718 7thAvenue SW Acreage, Lot Albany, OR 97321

Totals 3.694.304.22 16.350,780 7.325,760 849.630 8.175.390 9027% 42.041.39

w CO FINANCIAL INVESTIGATION REPORT (Cont.) ST-08-04, Infrastructure Improvements - Somerset to School (As ofJune 1, 2010)

Section 3. Number ofsimilar lots and property held by the City through foreclosure.

The City does not have property obtained through foreclosure. Eleven properties are delinquent more than one year.

Section 4. Delinquency rate ofassessments and laxes in tile area.

Ninety-six percent ofCity assessments are current. Property tax collections are projected to be 95 percent ofcurrent taxes levied.

Section 5. Real estate value trends in the area.

Real estate valnes within the City remain stable. Residential construction has been in a decline for the past two years. Building activity is expected to continue at a slow pace during FY 2010-2011.

Section 6. Tax levy trends and potentialfinancial impact on the proposed LID.

Taxes will remain stable. A small increase should be expected from an estimated three percent increase in property values.

Section 7. Does the project conform to the City Comprehensive Plan?

This project conforms to the City's Comprehensive Plan.

Section 8. Status ofCity's debt.

Costs attributable to this project will be incorporated into the final assessment roll.

Section 9. Estimated cost offinancing.

The City's practice is to charge the property owners 1.50 percent more than the rate on the bonds to pay for the costs associated with billing the property owners and administrating the LID. In 2002, assessment bonds sold at 5.05 percent; therefore, property ownerspaid6.55 percentinterest.

Sec/ion 10. General credit worthiness ofproperty owners within the LID.

The estimated total assessments range from $1,548,814.83 to $2,145,489.39. The monthly payment for the proposed assessments project to range from $17,625.60 to $24,415.79 for a ten year terru. Note: Financing under ORS223.215 providesfinancingfor a longer term.

CITcmp\Tempom.)' lmemcl FilcslCQlllmlOutiooklJfrSVNFMMFlNANClAL INVESTiGATION REPORTST-O8-~ Somerselto Schoo1.docx 39 RESOLUTION NO. ~~~~_

A RESOLUTION ACCEPTING THE ENGINEER'S AND FINANCIAL INVESTIGATION REPORTS FOR PROJECT ST-08-04, INFRASTRUCTURE IMPROVEMENTS - SOMERSET TO SCHOOL, AND TO SET A PUBLIC HEARING.

WHEREAS, construction is complete for the project ST-08-04, Infrastructure Improvements ­ Somerset to School; and

WHEREAS, the Final Engineer's Report and Financial Investigation have been received by the Albany City Council.

NOW, THEREFORE, BE IT RESOLVED that the Albany City Council hereby directs that a public hearing be scheduled for June 23, 2010, at 7:15 p.m. to consider the proposed final assessments for project ST-08-04, Infrastructure Improvements - Somerset to School, and that notices of the public hearing be in compliance with AMC Section 15.04.110.

DATED AND EFFECTIVE THIS 9TH DAY OF JUNE 2010.

Mayor

ATTEST:

City Clerk

G,lElIgilleerIStree'sIST-08·04 GAPSIRESOLUTlON NO 4.sI0804.docx 40 TO: Albany City Council

VIA: Wes Hare, City Manager Stewart Taylor, Finance Director

FROM: Mary Dibble, Deputy City Clerk

DATE: May 28, 2010, for the June 9, 2010, Council Meeting

SUBJECT:-Approval ofJoint Council Meeting minutes

RELATES TO STRATEGIC PLAN THEME: - Effective Government

RELATES TO: Records Management

Action Reguested:

Albany City Council approval ofJoint Regular Session and Work Session minutes.

Discussion:

The City Clerk's Office is working hard to streamline archiving processes. During a review of all the Joint City Council Regular Sessions and Work Sessions from 2005 to present, it was discovered that several minutes from the joint meetings had not been approved by Albany's City Council.

Generally, approval of minutes is presented to the Council as a Consent Agenda item. However due to the age of some of the minutes we are bringing them to your attention. The current City Council did not need to be in attendance at these meetings in order to adopt the minutes now.

• February 13, 2006, Albany City Council & GAPS Joint Work Session • March 19,2007, Albany City Council & GAPS Joint Work Session • April 4, 2007, Albany City Council & Lebanon City Council Joint Meeting • December 5, 2007, Albany City Council & GAPS Joint Work Session • November 7, 2007, Albany City Council & Landmarks Advisory Commission Meeting • April 20, 2009, Albany City Council & Planning Commission & Budget Committee Joint Work Session (CIP) • October 26, 2009, Albany City Council & GAPS Joint Work Session • April 12, 2010, Albany City Council & Planning Conunission & Budget Committee Joint Work Session (CIP)

Future joint minutes will be presented to the Council as Consent Agenda items, along with other City Council Regular Session and Work Session minutes.

Budget Impact:

None.

MD Attachment c: Betty Langwell, City Clerk

G:\MaryICCMemosVoint minutesapproval.docx

41 GAPS approved: Feb 27, 2006 Council approved:

_A __• - GREATER ALBANY SCHOOL BOARD ------­ _ " 8"'" -----~--.. - -:m _ _- [email protected]~ and ---- : .... ---- cA/lj(iizii CITY OF ALBANY CITY COUNCIL ~~ -.-.--7- Joint Work Session I11III1 Albany School District Office for our 718 Seventh Avenue S.W. FUTURE Monday, February 13,20067:00 p.m,

Minutes

CALL TO ORDER Greater Albany Public School Board Chair Don Bacher called the meeting to order at 7:03 p.m. In attendance were:

Don Bacher Board Chair Liisa Reid Vice Chair Frank Bricker Director Tom Sramek Director Sandi Gordon Director

Chuck McLaran Mayor, gave advance notice ofhis absence Dick Olsen Councilor Doug Killin Councilor, gave advance notice of his absence Ralph Reid Councilor Sharon Konopa Councilor Bessie Johnson Councilor JeffChristman Councilor

Pat Bedore Superintendent Steve Kunke Assistant Superintendent Maria Delapoer Human Resources Director Russell Allen Business and Operations Director

PLEDGE OFALLEGIANCE Director Gordon led attendees in the pledge ofallegiance.

INTRODUCTIONSIMEETING PURPOSE - School Board Chair Bacher asked the School Board and City Council members to introduce themselves. The Directors and Councilors did so and indicated the zone each person represents. Board Chair Don Bacher thanked the City Council for the opportunity for a joint meeting and welcomed attendees to the school district office.

CONCERN OFPATRONS None.

42 2

REPORTS CITY GROWTH IMPACT ON CITY SERVICESAND SCHOOL Albany City Manager Wes Hare reported that Albany is growing. He said that the growth was occurring faster than even the projections made in the City's comprehensive plan. He noted that almost one million people live within fifty miles of Albany. He said that might mean that the growth in the City might not be directly attributable to the economic activity in Albany. He surmised that it might be an indication of what is happening in the region. He said that Albany has a reputation ofhaving slightly more affordable housing than other communities in the region. He said the point was that growth is taking place and would probably not abate any time soon.

Mr. Hare referred to a chart of the City, which indicated the urban growth boundaries. He said the boundaries constituted a limit of sorts on the City's ability to grow. He said that the voters had approved the annexations. He said that future growth outside the current City limits would also require a vote ofthe people. He explained that ifthe citizens reached a point where they did not want to see any increased growth, they had a tool available to them. He said that it was difficult to resist the pressure to grow, noting that there was both an economic incentive and a fairness issue. He stated that most ofthe pressure he had seen was for continued growth and he predicted that the City would continue to grow. He said that there was no doubt that growth would create some strains upon city services. He noted that the City had recently built a new $30 million water treatment project and was designing a $70 million wastewater treatment plant.

He explained that the Albany could manage those projects because the City can simply charge residents for the cost of improvements to provide necessary services. He said it was more difficult to provide other services, particularly emergency services that the community had come to expect. He cited police and fire services as examples. He said the only real financial support the City has for those services is tax revenue. He expressed the opinion that under the Oregon public finance system there is no necessary correlation between population growth and revenue to support services that growth demands. He said it is becoming increasingly difficult to meet the demand for essential services.

Snperintendent Pat Bedore stated that while other local school systems were declining in enrollment; the Albany school system was growing. She said that the City's growth was impacting the schools. She explained that the district had struggled with increasing class sizes but the schools were now experiencing insufficient teaching stations for the district's teachers.

She reported that she felt that the school district and City were a wonderful team. She said that when the school district staff has approached the City staff for help and expertise, the City was remarkably cooperative and wonderful to work with. She said that the two staffs were asked to report that evening to the Board and the City Council. She said that City Planner Helen Burns Sharp was the expert in development within the City. She added that Wayne Goates was the expert on what was happening with enrolhnent and the student growth projections.

Director Bricker asked how one would go about altering the urban growth boundary. Mr. Hare replied that the process was very slow and expensive. He described the hearing process. Helen Bnrns Sharp added that it was a highly complicated process. She noted that the last time the City proposed to move an urban growth boundary, the process took 12-16 months.

Director Gordon said that she lived outside the urban growth boundary. She asked why persons living outside the growth boundary do not have the opportunity to vote on annexations. Mr. Hare said that a person living outside of the urban growth boundary and not part of the proposed 43 3 annexation would not be entitled to vote on the measure. Mr. Hare said that the vote is typically limited to the people immediately affected by the measure.

Director Sramek noted that Mr. Hare had discussed the City's proposal to upgrade the wastewater treatment facility. He asked if the project would involve upgrading an existing facility or ifthe City would be locating a new station. Mr. Hare replied that the project would be a reconstruction ofthe existing treatment plant. He explained that the City was under a mandate from the Oregon Department ofEnvironmental Quality to improve the quality ofthe effluent by 2009. He estimated the cost of the project at $70 million. Councilor Reid added that the City received a very favorable financing rate for the wastewater treatment plant. He said that the project would be financed through the State of Oregon and the City would not have to go to the voters for the funding.

Helen Burns Sharp referred to a chart ofthe City and indicated the urban growth boundary. She said that in North Albany, the urban growth boundary and city limits were congruent. She said that the area ofNorth Albany had been absorbed into the City in 1991. She indicated the area of growth in the North Albany area. She said that there had not been growth in the Springhill area and there would not be growth in that location until city sewers were available. She described other future growth areas in North Albany.

Ms. Bums discussed the area to the east ofInterstate 5. She said that to the east ofthe City, there are portions of the urban growth boundary that are outside of the City limits. She said that the City had received requests for one thousand lots in the area to the east ofthe City. She said that 500 lots had been formally recorded and building permits for had been issued for 400 homes in the last three years. She identified other growth in the region.

Ms. Burns referred to the Oak Creek area to the southeast of Albany and described it as an "opportunity area". She said that the City Plarming Department was attempting to defme how the area would develop. She noted that the City was interested in a prime industrial development area to the south along Pacific Highway. She also suggested that it would be a good location for a new school, park, fire station, and stores. She said that the City was also working with state authorities to consolidate some ofthe wetlands in the area.

Councilor Johnson asked of the location of Tangent School. Superintendent Bedore replied that the school is located in the City of Tangent but is pari of the Greater Albany Public School district. Ms. Bedore noted that the population ofTangent was growing as well.

Student Services Coordinator Wayne Goates reported on student enrollment growth. He testified that the school district had increased by 204 students during the last year. He estimated that enrollment would increase by more than 200 students during the coming year'. Mr. Goates detailed the areas ofthe City that are growing. He provided a listing of36 housing developments that the school district was watching in Albany and Millersburg. He said there was actual construction in 28 ofthe developments.

Mr. Goates noted that in previous years, the school district had 500-600 students in a single elementary grade. He said that some grades now have as many as 700 students. He estimated that within ten years, populations would approach 800 children in some grades.

Mr. Goates said that the district considers capacity of an elementary school classroom at 27 students. He indicated that the enrollment at Clover Ridge, Liberty, North Albany, Periwinkle 44 4 and South Shore Elementary Schools were already over capacity. He estimated that the elementary schools would grow by 400 students within the next five years. He forecasted that within the next ten years, the elementary, middle and high schools would each grow by more than 550 students. He predicted that the district would have to move students from some of the most crowded schools and bus children across town to less crowded buildings. He emphasized that the district needs to have more space.

Councilor Konopa said that the public has to be educated regarding the impact of the growth upon the City. She said that ifpeople wish for the City to grow, they have to be willing to pay for it at the ballot box. She said the public would have to pay for infrastructure, city services and schools as the City grows.

Councilor Johnson asked if there were any schools in the district that are currently not in use. Superintendent Bedore replied that Fairmount was built as an elementary school. She said the structure was closed a number of years ago and was recently used for special programs. Ms. Bedore said that the district was targeting the school to reopen in the fall of 2007. Mr. Goates emphasized that as Fairmount reopened as an elementary school; the district would have to move the 150 special program and Albany Options students now at the school. He said that the district did not currently have a location for those students.

SCHOOL BOND Superintendent Pat Bedore noted that when the City and school district last met, the school district began an extensive review of the district's schools. She spoke of the work ofthe District Facilities Advisory Committee (DFAC) and described their year-long study of the district's schools.

She said that the advisory committee reported to the Board in June and provided a huge list of projects that identified the needs of every district facility. The committee also reviewed enrollment growth issues and recommended the construction of a new school. The DFAC further recommended that a bond be put before the voters. In their enthusiasm, she said, the committee recommended that the bond be presented during the November 2005 election. Ms. Bedore said that the Board knew that the November election would be too soon and initially considered a bond at the March 2006 election. During discussion with the community, citizens told the Board that much more voter education was necessary before a bond could be put on the ballot. The Board decided to seek a bond issue at the May 2006 election. She said that Business and Operations Director Russ Allen would later report on the proposed bond projects.

Ms. Bedore added that the district learned during the November community forums that the citizens were concerned about safety within the schools, access for students and adults, capacity issues, and upgrading science and teclmology labs so that graduates could compete in the global economy. She said that citizens believed that accountability was a very important issue. She reported that the Board had appointed a citizens oversight committee that would begin work as soon as the bond passed and watch each expenditure.

Mr. Allen reported that the DFAC had divided into smaller groups and had evaluated every facility. He said their report indicated that the buildings were very well maintained, but the average ofthe schools was halfa century old and some ofthe schools were ninety years old. The report noted that the buildings were never intended to last forever, without major renovation or equipment replacement. He testified that the committee found plumbing, heating and ventilation systems so old that parts are no longer available, piping that produced brown water, and

45 5 classrooms without enough outlets or sufficient power to operate the needed technology. He said that the committee made recommendations to the School Board and the district has been refining the projects and their costs since then. He reported that the DFAC identified more than $110 million in critical needs. Projects that were previously identified as "nice to have" were never included in the project package. He said that the School Board recently came to consensus on bond amount of $55 million, an amount the Board believed the community could bear.

Mr. Allen said that the when the DFAC evaluated the buildings, their mantra was "Safe, Warm and Dry." He reported that there would be $6 million dollars in projects identified for school safety improvements, $4 million in roof replacements, $3 million in boiler replacements, and $800,000 to replace aging water piping to improve drinking water. He said that there more than $2 million was proposed to improve access for students patrons and staff.

Mr. Allen said that it was also the desire of the DFAC to improve the ability of the district to provide 21st century education. He said there was $6 million in the project list to improve education by electrical upgrades and classroom modernization, especially science labs. He said that the committee also identified $25 million in projects to provide additional teaching stations, more classrooms and more places for students to be. The $25 million also included the constrnction ofa new school to support growing enrollment and relieve over crowding.

Councilor Konopa referred to the proposed new school. She asked for how long the proposed constrnction would meet the enrollment needs of the district. Mr. Allen replied that the Board charged the DFAC to look ahead ten years. He said that the Board had agreed that Clover Ridge Elementary School would be reconfigured as a K-2 school and the new school would be constructed for grades 3-8. He said that the Board was considering constructing a school with a capacity of 800 students. He estimated that the proposed bond would meet the enrollment needs ofthe district through the year 2015.

Councilor Johnson said that the information provided by Mr. Allen was very important and should be shared with every citizen. Councilor Jolmson asked ofthe length ofthe proposed bond. Mr. Allen replied that the Board agreed to a term of ten years.

Board Chair Bacher noted that the School Board and City Council had heard discussion on a number ofgrowth issues. He asked ifthere were any related issues.

Director Bricker asked of the status of a proposal to modify the traffic flow in front of North Albany Middle School. He asked of the status of construction of a traffic light in the area. Ms. Helen Burns Sharp said that money had been allocated. Mr. Hare estimated that the work could be completed within a year.

Councilor Jolmson asked of the tax rate of the proposed bond. Mr. Allen estimated a rate of $1.74 per thousand.

OTHER ISSUES OF INTEREST Director Gordon congratulated the City on the operation of the "Cool Pool". She said that her daughter, niece, and nephew especially enjoyed the facility.

Councilor Reid congratulated the school district and Albany Recreation Director Ed Hodney on the cooperation between the City and the school district in the smooth transfer ofoperation ofthe Community Pool. 6

Director Sramek said it would continue to be important for tbe City and school district to collaborate to meet the growing population needs. He noted that when he lived in a different city, youth athletic leagues used school athletic fields almost exclusively. He suggested that there could be room for a partnership between the City and the school district in upgrading athletic fields.

Councilor Reid noted tbat the City was seeking to expand its public library. He noted that Albany had received a donation to meet the capitol construction needs ofthe library. He said that the City had not yet identified the funding for the operation of the library. He suggested that there might be an opportnnity for the school district to share in the operation of the library. Mr. Hare said he could discuss the suggestion with Superintendent Bedore.

Board Chair Bacher noted that some Greater Albany School District students live outside ofthe City of Albany and are therefore limited in their use ofthe Albany public library. He asked if all Greater Albany School District children could be permitted free access to the new library. Councilor Olson replied that anyone could use the library any time they wished, but they might not be permitted to check things out. He said that the Carnegie Foundation-could provide a scholarship to needy families for the purchase ofa library card.

Councilor Olson asked if the School Board had reached a decision regarding the future of Central Elementary SchooL Board Chair Bacher replied that the Board had decided that Central School would remain as an elementary schoo!.

ADJOURNMENT School Board Chair Don Bacher adjourned the meeting at 8:30 p.m.

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Greater Albany Public School District 8J 718 Seventh Avenue S.W., Albany. OR 97321 Phone: (541) 967-4501 Web Site: www.8j.net

47 dAPS approved: April 9 b 2007 ...._._- ----_-­­ JOINT :MEETING OF SCHOOL BOARD ------~-- and ---- ALBANY CITY COUNCIL Albany City Hall Council Chambers for our FUTURE Monday, March 19, 2007 City Council approved: 7:00p.m.

Minutes

CALL TO ORDER

Mayor Doug Killin called the meeting to order at 7:00p.m. and led those present in the pledge ofallegiance to the flag.

INTRODUCTIONS

Board chair Liisa Reid introduced board members Sandi Gordon, who represents Zone 5; Don Bacher, Zone 2; Frank Bricker, Zone I; and Tom Sramek, Jr., Zone 4. Reid represents Zone 3.

Mayor Killin introduced the City Council members. In response to a question, Councilor Konopa explained the geographic boundaries ofWard II, noting that it has the highest population density but lowest voter participation ofthe three City wards.

J:lUSINESSFROM THE PUBLIC

No one spoke.

REPORTS I) Community Health and Wellness a. School District Wellness Policy

Superintendent Pat Bedore introdnced members ofher staffwho were present: Wayne Goates, Student Services Coordinator; Russ Allen, business and operations manager; Steve Kunke, Assistant Superintendent; Maria Delapoer, Human Resources Manager; Ed Fitz-Patrick, capital projects manager; and John Ewing, a member ofthe Budget Committee. Bedore noted that while it is not common for school boards and city councils to hold joint meetings, the two government structures overlap to touch everyone in the conununity in one way or another.

Bedore had included a copy of the school district's wellness policy in the agenda packet. It covers nutrition education, nutrition guidelines, physical activity and other school-based activities. The policy served as an introduction to the Safe Routes to School and bike safety education programs. Bedore noted that the bike safety education program has received two grants that will allow them to buy a trailer to transport the district's fleet of bicycles, hundreds of helmets, and related equipment easily.

City Manager Wes Hare introduced City staff and volunteers present: John Stahl, Acting Finance Director; Helen Burns Sharp, Community Development Director; Danette Dexaulnier, Benefits Coordinator; Ed Boyd, Police Chief; Eric Carter, Police Captaiu; and Jim Lawrence and Bill Pintard, members ofthe City Bicycle and Pedestrian Advisory Commission and e Safe Routes to School task force.

P:lBoard\MinuteslMinutes 2006-2007Voint Work Session with City Council, 03-19-07.doc 48 b. Safe Routes to School

Hare explained that Safe Rontes to School has been a grass roots initiative here. He directed attention to a resolution supporting the effort that he had drafted for the board and Council to consider (copy attached.)

he idea behind the effort is to make it safe for children to walk to and from school again. Research shows a direct correlation in decline in physical activity among children and an increase in childhood obesity. Surveys try to get at why children aren't walking to school and why they don't feel safe. Albany has had a couple of walk and bike to school events, including one last week at South Shore Elementary School with about 150 students participating; they walked from Costco to South Shore and, he noted, for most ofthat way, there are no sidewalks. Hare said he was amazed at amount oftraffic in that neighborhood at that hour ofthe morning. It is understandable that parents might he reluctant to send their kids on foot or on bikes.

The international event in October event also drew large numbers of kids. Hare participated in the walk from Gibson Hill Park to Oak Grove elementary school, with no sidewalks on Gihson Hill or Oak Grove roads. After that event, Oak Grove parents came to City Conncil to ask for a pedestrian path from Gibson Hill Park to the school. The engineering stndy for that path has been inclnded in the City's capital improvement program. The Safe Routes task force helped with that, and having the program in place puts the community in position for access to other resources such as state grants. Hare sees this as a great opportunity for the City and school district to partner on projects that are good for our children.

Councilor Bessie Johnson asked how many bikes could be stored in the trailer. Lawrence said he has located an 8-by-20-foot enclosed trailer that will hold the fleet of35 bikes, 250 helmets and other equipment in a mobile but secure location. It will help instructors teach at two schools in one day.

Councilor Dick Olsen asked if the main reason children don't walk to school is the lack of sidewalks? Hare said that is certainly a factor in some cases. In North Albany, parents don't want kids on busy roadways, news accounts of child abductions don't help, and weather is a factor. Both parents and kids may receive some edncation about it. Hare said it makes good sense to make our communities as pedestrian- and bike-friendly as possible.

.»hnson asked ifschools teach kids how to walk on the roads, i.e. against traffic and not with it. Bedore and Kunke said it is not a core part of the curriculum. Reid asked if the school board would be committed to anything specific ifthey accept the resolntion. Hare said adoption ofthe resolution would simply show support for the safe routes concept. If either party wants to go farther, it could improve our chances ofgetting grant money.

Reid asked what would be done with the new school to make safe routes? Hare said the most important thing is locating it in a residential area, since the City requires sidewalks in new developments. Burns Sharp said the school site was chosen partly because of the opportnnity for paths, trails, and sidewalks. Sidewalks and bike lanes are considered an integral part of the transportation system.

Hare acknowledged DeSaulnier as the City's representative to the Healthy Albany Partnership. Lawrence handed Safe Routes brochures to Bedore and Reid.

Tom Cordier, in the audience, asked officials to speak np - the room's public-address system was malfunctioning and had been shut off. Cordier said he has some concerns abont safe routes, walking and biking. He cited a recent incident in which a young boy kidnapped and killed by a sexual predator who was stalking him. He noted that Albany Public Library staffhad been trained to recognize sexual predators who live within a mile ofthe library, had found one ofthem in the library and had him removed. He believes that the Safe Routes program should take that into consideration. Now that information about sex offenders is available on the Internet, school staff should be trained to recognize who they are and make sure they are not hanging around the schools.

Killin asked if the two bodies wanted to pass the resolution. Bricker noted that this meeting is technically a Board work session, and the Board can't take action.

2) Connnunity Safety a. School Resource Officers - Steve Kunke, Ed Boyd

P:\BoardIMinuteslMinutes 2006-2007LJoinl WorkSessionwith City Council, 03-J9-07.doc 49 Chief Boyd said he had reluctantly been assigned as a school resource officer (SRO) earlier in his police career but it had turned out to be one ofthe best assignments he's ever had. Few ifany partnerships have more value in a community. SROs have been an integral part of school campuses since the 1960s and in the Albany schools since 1994. Boyd said he views schools as mini cities and SROs as mini police chiefs ofthose cities. He outlined their multifaceted responsibilities.

Kunke described what school principals at each level value about the program. In the elementary schools, it's visibility; kids are able to recognize that these are real people, there for support, and are doing real work. The DARE program provides the greatest visibility at elementary level. He sees SROs as partners with schools and parents. In the middle school, investigating behavior incidents becomes more important. SROS are valuable in helping principals and staffin makingjudgments that are tricky. In the high schools, they have an important role in promoting school safety, receiving reports from kids who have information that they need to share, and providing information to kids for safe condnct.

At Liberty Elementary/West Albany Higb/Memorial Middle Schools, an SRO on a bike helps with traffic control.

Boyd said in assigning an SRO, Police commanders look for conflict resolntion skills, individuals who are good at building relationships with partners, flexibility, and those who look for the best solntion to a problem. The ideal SRO wonld have the ability to be a good teacher, dedicated to helping youth sncceed in their formative years, and could be developing future police officers.

Kunke described help the school district had received from the Police Department in resolving problems betweenneigbbors and the Albany Options School at the former Fairmount Elementary School. A year after working through the problems, the. school district hosted another neighborhood meeting and only one person showed up, 20 minutes late, and told school staff he had no complaints.

Councilor JeffChristman asked how many SROs are assigned to Albany schools. Boyd said three.

Hare noted that Marilyn Smith, city Public Information Officer, has also been active in the Safe Rontes and other programs.

.are said that he does periodic ride-alongs with Police and on a recent one, an officer recognized a registered sex offender in a City park. He asked how much knowledge SROS have ofsex offenders in the community. Carter said they do their best to keep up on the predatory sex offenders who live in the area, but they area a fairly transient population, and the Police might not get information when they move. Police helped with a warning posting in West Albany area earlier this year.

Boyd said part ofthe education Police do in elementary schools is "stranger danger," "good touch/bad touch," and situational awareness. Information is also sent home to parents. Gordon remarked that she had attended a recent session on Internet safety taught by an Albany police officer at Albany Options School. She said she was amazed at the things she had learned. Johnson noted that sex offender information is posted on the Linn County Web site. Goates said it is also posted on the school district Web site under Parent Resources.

3) Community Growth a. School District Capital Projects Update

Allen said not much visible has happened since the bond was passed in November, but the first round ofprojects will happen between June 15 aud Augnst 31; a complete list is posted on the school district Web site. Preparation for new school continues. The district has a letter of intent to purchase 20 acres and is working on wetlands issues; he said Burns Sharp has been exceptionally helpful.

The new elementary school will be bid this summer, work will begin this fall and it will be ready for students in fall of2008. It will have a capacity of 800 students in grades 3-8, drawing from Millersburg and properties east ofthe freeway. The site is north ofKnox Butte Road just west ofDraperville and north ofthe Brandis Village development. The district is also looking for a new location for Albany Options School across from Sunrise Elementary.

.conopa asked abont the location of a pressnred petroleum line; Allen said the line was some distance from the school site, and it had been considered when choosing the property. Olsen asked if the new school would encourage the walking to school concept. Allen said it would be in middle of a residential development, fully sidewalked, with safe parking for P:lBoard\MinufesIMinUles 2006-2007Voint Work Session with City Council, 03-J9-07.doc 50 bicycles. Olsen asked the maximum distance from which students would be coming to the new school. Allen said they would be coming from Millersburg and Crabtree; school policy is to provide bus transportation for those at least one mile away from the school.

Burns Sharp noted that most residential development in the area would be north ofthat site. Goates said there will probably ~ about 1,000 homes within walking distance.

Konopa asked if any existing schools would be expanded. Allen said yes, at South Albany High School, West Albany High School, North Albany Middle School, and Tangent Elementary School. Modular buildings will be added at the Oak and Takena school campuses, The modular units at Grand Prairie School are not rated for educational pnrposes; they are being used to deal with part ofthat building that is danger offailnre, Allen said.

Councilor Ralph Reid Jr. asked ifa traffic signal was planned for the Brandis Village Center. Burns Sharp said it would be a roundabout. Reid Jr. suggested thinking twice about that. Sharp said we definitely need to think through pedestrian access.

b. City Capital Projects Update and Futnre Needs

Hare said the City is upgrading the wastewater treatment plant, a $72-plus million project, on the heels of the new water treatment plant project, which was around $30 million. Despite other opinions, a survey ofCity streets shows that about 80% are rated in good condition or better. Other projects on the City agenda are new facilities for police and fire, possibly blending in the Operations division to keep costs down. The city has set up a reserve fund to save money for this project; we wanted to give both school district and City the best possible shot at passing onr respective measures in last election, so did not have a city facilities bond competing. The Police station, while not yet 20 years old, was designed for a smaller community, and the main fire station was built in 1950. It would likely be the first building downtown to come down in an earthquake.

Hare also talked briefly about the 53rn Avenne overpass, which was triggered by the PepsiCo development.

Gordon asked if Wal-Mart is coming out in northeast Albany as the rnmor has it. Hare said he has no idea what Wal-Mart's .ans are. Sharp said the City received an application from Wal-Mart several years ago on Stone Forest site, but traffic sitnation didn't work. The City has not heard anything officially from Wal-Mart in the past couple of years. Places they conld go nnder current zoning are limited to the "piano" property and the Ropp property.

Bacher asked for an npdate on the new traffic light and traffic patterns at NAMS. Hare said he is not aware of any complaints. Councilor Dan Bedore noted .that the City is in the midst of reviewing its transportation system plan and open houses coming up. Killin said that North Albany seems to be very happy with the traffic signal.

c. Fnture Growth Discussion

Goates reported enrollment from 1990 through today with projections through 2016; the projections are conservative estimates. He noted that the school district has grown by 450 stndents in last two years, and 450 in the three years before that. It was 28 stndents short of9,000 on October I and has grown since. The number will jump again by over 200 stndents by next fall. Corvallis used to be significantly larger than Albany but now the difference is about 2,000 in Albany schools. Kindergarten classes are growing also, due to increased birth rates and in migration.

He recapped the housing developments approved in Albany, Millersburg, Tangent and Oak Creek. All told, Albany has grown by over 1,700 stndents since 1990, and we expect more than 1,700 additional in the next 10 years. The total is almost a 50 percent increase in 25 years. High school capacity is a concern in seven years.

Killin asked what percentage are going to private schools or being home-schooled? Goats said about 200 home-schooled, the same number as Lebanon. He did not have a figure for private school enrolhnent.

'

Ps'Board'Mtnutes'Minutes 2006-2007Voint Work Session with City Council, 03-/9-07.doc 51 Olsen asked if all the new stndents would fit into the new school east of the freeway. Goates said the work funded by the bond should take care of elementary and middle schools for 10 years; the high schools will be filled to capacity in seven years. The district is expecting about 170 new students per year over the next 10 years, with 200 anticipated next year.

Sharp said single-family building permits have leveled off in the last year or two. Fewer than 400 were issued in the last ilendar year. Many new subdivisions have been approved with the potential for lots ofnew houses, but no one know when they will develop. The Henshaw annexation was approved two years ago, for example, but wetlands are still an issue there. The City does not expect a lot ofchildren from the planned downtown residential development. We are starting to see what a village center looks like in North Albany.

Goates asked about water and sewer service for the Henshaw property. Sharp said it is not far away. Killin said he is encouraged about downtown development building up rather than out. He agrees with Sharp that these developments are not likely to have much influence on the school population.

Gordon said she is seeing more apartment units going up than she has in the past. Sharp sad it has been very cyclical. The multifamily development has been pretty flat; last ones to go online were the Knox Butte apartments, and now the ones on Century Drive. Sharp said she hasn't heard of any others but she has heard of some more assisted living/retirement aparhnents.

Gordon asked about police and fire services in northeast Albany. Some ofthat part ofthe school district is outside the city's urban growth bonndary, though all is inclnded in the area protected by the Albany Fire Department, and includes one ofthe potential future sites for a new fire station, Hare said. Inside the City limits, police base patrol schedules on where the need is; that area has not been a heavy need area.

Konopa asked if the school district has factored in M37 claims. Goates said no, but he hears a lot of rumors. School enrollment projections are based on developments that have been approved. Konopa said that pocket subdivisions, if approved, would impact the schools. Killin said the City is really concerned about mini-subdivisions outside the city limits; when septics or wells fail, the City has to take them on.

4) Legislation ofMutual Interest

Board Chair Reid said the school district would have a measure on the May 15 ballot that will reduce the number ofschool board zones from five to three with two positions being elected at large. This is to try to encourage more people to run for school board positions. It has been hard to recruit candidates and get people to run. Sramek said it wouldn't affect current board; no school board election is scheduled for another two years.

Bacher said, when it comes to legislation pending in Salem, most ofthe issues that the school board looks at deal with educational issues, while they tend to overlook what affects all ofus. He said he had spoken to Steve Bryant at the League of Oregon Cities earlier in the day about legislators' interest in school impact fees and systems development charges.

Two bills are scheduled to have hearings on Wednesday morning at 8:30: • SB 366 - authorizes impact fees on creation oflots or parcels; • HB 2019 - basically the same on new residential dwellings, plus a cap on the maximum SDC for parks; • HB 2525 - SDCs for schools and classrooms for grades k-12; and • Donble majority bills - SJR 35 which modifies current requirement in property tax elections after June 2008; and SJR 27, which repeals the law but restricts property tax measures to November in even-numbered years or any May election.

Konopa asked ifthese bills would go to the voters. She said it would be great to have SB 366 pass, but itcould put a burden on a lot of development. She said 2525 is the better one; 2019 would take away from our Parks & Recreation. HB 2581 proposes SDCs for police, fire, library and schools. She said it is refreshing for someone else to bring up this topic. Olsen asked ifthe school board was in favor ofthese measures. Bacher said yes. Olsen said he was glad to hear it.

.dllinmentioned SB 400, a collective bargaining bill that was brought by state employees in mental hospitals and prisons but will affect fire and police negotiations. He also mentioned HJR 45 and 46, which would increase the limits of Measures 5 and 50; HB 3304, dealing with island annexation changes; and HB 2785, which would make it easier to get permits for small P:lBoardlMinuteslMinutes 2006-2007Voint Work Session with City Council, 03-19-07.doc 52 electric generators. He said he would like to have one in the canal by SAHS as a science project, and said he also hopes that money generated by the restart ofthe hydrotnrbine can be channeled back to other alternate power generation.

F. BUSINESS FROM THE COUNCIL AND THE BOARD

'Isen said that he doesn't see any streets on site plan for new school. He said it's smart to have facilities face the street, and the school appears to be pretty well barricaded by parking lots. Does that put your best foot forward to have the front yard of your school taken up with parking lots, he asked. City ordinances don't allow people to park cars on their front yards. He suggested putting the parking lots in the back. Sramek said the schools want to insulate play areas from the street as much as they can; cars go in one area and students in the other area and hopefully the twain don't meet too often.

Gordon talked about the work that went into the design for the new school and its grounds to meet current and future needs, accommodate wetlands on the property, and make bus and parent-provided transportation areas safe. She said the district had to be very creative with all the school needed to have and how to place it on this property. The result is designed to keep kids safe and dry in a park-like setting. She called it a phenomenal design and collaboration and said she would be happy to show it to Olsen. Olsen said it sounds like the district counts on virtually all the kids coming by bus or by car. Gordon and Bricker provided additional information.

Olsen asked ifany work is planned at Central School and ifso, what the schedule would be. Allen said that seismic upgrades and new fire escapes are planned for installation in the summers of2008 and 2009. Olsen asked ifthe wooden fire escapes were deteriorated. Allen said they were not, but they need to be made ofa noncombustible material.

Christman commented that individuals from other communities have told him that they are amazed that the Council and the school board would be sitting down together, working together. He appreciates the fact that they can do this.

Killin related a school district story from years earlier involving Goates, former West Albany Principal Dick Pigg, and English and journalism teacher Darrel Wolfe in an after-hours encounter withAlbany Police.

WJOURNMENT he meeting adjourned at 8:48 p.m.

Respectfully submitted,

Marilyn Smith Management AssistantlPublic Information Officer

P:1BoardlMinuteslMinutes 2006-2007Voint Work Session with City Council, 03-19-07.doc 53 Lebanon Council approved: Hay 2, 2007 .A Albany Council approved:

City Council Special Session Cities ofAlbany and Lebanon Joint Meeting Wednesday, April 4, 2007 -7:00 p.m. Samaritan Lebanon Community Hospital 525 N. Santiam Highway, Lebanon, OR

MINUTES

The meeting was called to order at 7:00 p.m. by Albany Mayor Doug Killin and Lebanon Mayor Ken Toombs

FLAG SALUTE

Killin and Toombs led the pledge ofallegiance to the flag.

ROLLCALL

Albany elected officials present: Mayor Killin, Councilors Dan Bedore, Sharon Konopa, Bessie Johnson, Ralph Reid, Jr., and JeffChristman. Albany elected officials absent: Councilor Dick Olsen. Albany staffpresent: Wes Hare, City Manager; Jim Delapoer, City Attorney; Marilyn Smith, Management AssistantlPublic Information Officer; Diane Taniguchi-Dennis, Public Works Director; Claudia Zahorcak, Special Projects Coordinator; Ed Gallagher, Library Director.

Lebanon elected officials present: Mayor Toombs; Councilors Ron Miller Jr., Ray Weldon, Floyd Fisher, Tim Fox, Rebecca Grizzle, and Robert Elliott. Lebanon staffpresent: John Hitt, City Administrator; Jim Ruef, Public Works Director; Mike Healy, Chief of Police; Denice Lee, Library Director; Darrell McLaughlin, Environmental Operations Manager.

Toombs introduced the Lebanon Councilors. Killin introduced the Albany Councilors. Toombs welcomed guests in the audience, and explained the hospital's healing garden, which is outside the meeting room. Toombs explained that items on the agenda for this meeting were for information and discussion purposes only; no decisions were to be made tonight. Killin called the meeting an historic occasion. It is the first joint meeting Of the two Councils in his 10 years on the Albany City Council. Councilor Ron Miller noted that the two bodies had met jointly many years ago in Albany.

PROPOSED COUNTYWIDE LIBRARY DISTRICT DISCUSSION

Lebanon Library Director Denice Lee outlined the history of the Linn Library League (LLL) and the work it has done since it was formed by two women from Scio in 2002. (See attached statements.) She described government and grant funds that the League has received, the bookmobile, number of patrons, and items circulated. She said the League has the eye of the Oregon State Library, which is willing to put money toward the creation of a countywide library district.

Joint Special Session Cities ofAlbany & Lebanon - April 4, 2007 Page 1 of7

54 The League's goal is to put a measure to create the district on the ballot in 2008 for 60 cents per thousand dollars of assessed value, for the cities that participate. The district would essentially be its own municipality with five zones for elected representatives. Property tax funding would be for operations only, not facilities. Residents ofareas included in the new district would have borrowing privileges at all Linn County libraries without charge for all Linn residents. Existing libraries could increase the hours they are currently open, and borrowers would have access to at least 50 percent more books and other items in the shared collection. A district would allow more programs for children, shared online catalogs and databases, and access to reference librarians from every library.

In Lebanon, Lee said, it would mean better services for all citizens, more hours, a bigger book budget, and more help for patrons at no cost increase to taxpayers. The 60-cent proposed tax rate is approximately the same as what Lebanon taxpayers are now paying for library services. People inside the city limits are currently subsidizing those who live outside; about 50 percent of Lebanon school students are outside the city limits and have to pay for a library card. The new district would have a common card for all residents, eliminating membership confusion. No staff cuts or salary cuts are expected and benefits would remain the same. Local foundations would keep their money and use them as they see fit locally.

Albany Library Director Ed Gallagher thanked LLL founders, May Garland and Linda Ziedrich, for five-plus years of amazing work on behalf of rural Linn County. If there were people across the country as passionate as they are about libraries, this would be a different country. (See attached remarks.) He said that increased access to libraries and materials is good for our culture. The library district proposal is a good thing. Gallagher referred to a recent story in the Albany Democrat-Herald about the city of Brownsville's objections to the proposed district. He said library districts are successful across Oregon and the country. The idea has been around for about 100 years. The importsnt question is what's in it for Albany. The district plan will be updated again. It doesn't address new operating costs for the two new libraries, Lebanon and Albany. The new district would include five or six of the cities in Linn County and could result in a 66 percent increase in revenue for library services.

Gallagher said that Albany is trying to get its levels of service up to standards set by the state of Oregon; the district would get it there much quicker. Albany has a public safety levy and ifAlbany library services were funded by the district instead of the General Fund, the Albany City Council might opt to use the amount currently levied for Albany library services to make some ofthe public safety levy positions permanent, therefore no longer dependent on levy renewal. A lot of this plan is behind the scenes, he said, in efficiencies, management, and dedicated funding.

Councilor Bessie Johnson asked ifeach library would still have individual directors. Gallagher said his understanding is that one director would oversee the district with guidance from an elected board, and each library. would have a manager. Some positions might be shuffled according to levels ofexpertise that might be useful at the district level.

Asked if any current staff members would lose their jobs, Lee said by law that cannot happen.

Johnson asked, how many cities would be included in the district? Gallagher said the plan, as written, has six cities but the city ofBrownsville would probably not be included.

Councilor Dan Bedore asked, what would be the cost of a library card for non-residents? Gallagher said that in Albany that cost is $60 for a family and $30 per individual.

Joint Special Session Cities ofAlbany & Lebanon - April 4, 2007 Page 2 of7

55 · Killin noted that ifAlbany doesn't want the district, it won't happen.

Councilor Floyd Fisher asked, what does the tax money go for? Lee said it would be for operations only; personnel and materials. Garland said district officials would expect to talk to each city about each facility agreement. That might not be the same for each facility. Facility budgets for the district, as proposed now, covers "light" maintenance.

Johnson asked, which cities are included in the proposal? Gallagher said Brownsville, Albany, Lebanon, Scio, Sweet Home, and Harrisburg. Cities in the North Santiam Canyon area are talking about forming a separate district.

Councilor Tim Fox asked, how hard would it be for a city to join later or pull out? Gallagher said ORS 357 provides some ofthose details. He said he has heard ofdistricts disbanding in total.

Albany City Manager Wes Hare said it would require a vote of the entire body to disband. Once you create a special district, it has to be disbanded by the same method it was created, though new members can choose to join later.

Councilor Robert Elliott asked, how would this affect the city ofLebanon Library budget? Lee said that is something each city would be asked to consider.

Garland said that if it was possible for a city to under levy, it would take that much money out of your budget. She added that someone has described conversations about under levying as a leap of faith for the voters. If we waffle about what we would do with that, we will lose the confidence of the voters.

Miller said he had talked about this 10 years ago because ofeconomies of scale and was very happy when the two ladies came forward. The Council would have to commit to under levying. He added that it can't be smoke and mirrors.

ALBANY CANAL DISCUSSION

Albany Public Works Director Diane Taniguchi-Dennis and Lebanon Public Works Director Jim Ruef narrated a PowerPoint presentation about the Santiam-Albany canal (see attached slides). Dennis said the two cities had executed an intergovernmental agreement on April 23, 1986, to deal with the canal and maintenance. She and Rueffelt it was time for both Councils to get together and talk about the canal. She and Ruefmeet regularly.

Dennis explained that the canal is integral to Albany's water supply, and will be more so as the City approaches build-out. Whatever is done on the canal, both cities have to have a water supply. Current issues include trees in the canal, bank erosion, debris, sediment, endangered species (salmon, lamprey eel), wetlands, nutria management, property and access. She explained "Mission 190," a project to bring canal capacity up to 190 cubic feet per second (cfs). It is slightly over 100 cfs today. The project was triggered by the effort to restart Albany's hydroelectric turbine. It will require removing debris, trees and sediment, removing nutria, and repairing banks.

Ruef explained that the two cities need a sustainable long term plan for the canal. He said he confers regularly with Albany staff and reviews joint news releases before they go to the Lebanon Express. The two cities plan to co-host public meetings. The goal is to protect the water system, but a lot of people live on the canal and they deserve consideration. Joint Special Session Cities ofAlbany & Lebanon

56 Dennis and Ruef said they have explored common comprehensive plan elements. Lebanon didn't include the canal as a riparian zone in its plan, for example. They are treating it as another creek but that's not proper - it's a manmade structure. Both are interested in keeping the water cool, should consider protection ordinances, and need to do vegetation and nuisance management. Lebanon passes along complaints to Albany. Also, Lebanon should require new development along the canal to seek comments from Albany in order for access needs to be protected. The upper part has four gates in it, one belonging to Lebanon.

Dennis introduced Albany Special Projects Coordinator Claudia Zahorcak, Project Manager for the canal. Ruef introduced Lebanon Environmental Operations Manager Darrell McLaughlin, who works on water issues. Dennis said the cities are negotiating with regulatory agencies to maintain their interests.

Miller asked, where is the location of the property line for owners who abut the canal? Dennis said it varies. Staff is working on defining it and will be very careful.

Councilor Ray Weldon asked, are the wetlands inside or outside of the banks? Dennis said irises growing on the bank make it a wetland; some are on the inside of the banks. Ruef said the area where irises are growing used to be used as a swimming hole. Sediment has built up over the years and irises are growing there. Toombs noted that if it drains into the Willamette, it's in the jurisdiction ofthe Corps ofEngineers.

Councilor Sharon Konopa said the cities should take into consideration where the canal was routed originally. It could have been through wetlands. Miller mentioned property near the Lebanon Airport which has recently been declared wetlands.

Konopa said wetlands are a benefit to water quality and we need to keep that in mind.

Councilor Jeff Christman asked, why not put a pipe down the middle? Dennis said the canal is an historic structure. We could pipe it, put a flowing amenity on top, and use it for flood control, but that would spend a lot oftime and money trying to keep out water that naturally drains to the canal. Ruef said it is important to respect the aesthetics. People who live along the canal would be offended. A pipe could go a different route so the canal is not affected and maintain the same aesthetic value, but the money would be prohibitive. It would probably double rates for water users.

Ruef said Lebanon is paying Albany to transport Lebanon water to the Albany Water Treatment Plant, at almost $100,000 per year.

Dennis said Albany is rethinking the level of service we provide to the canal. In the past it was one person, but for safety reasons we need to have two people assigned to the canal. Albany is now dedicating Zahorcak and Operations Maintenance Coordinator Dan Grassick's time to the canal.

Johnson asked if rural residents along the canal take water from it. Dennis said some do, though they don't pay for it or have water rights. The Grand Prairie Water Control District is also a player.

Councilor Ralph Reid said that when he joined the Council II years ago, he began asking where is the canal, who owns the canal, if it was in shape, and what would it cost to operate it. He said he feels that some ofthose questions are getting answered, but have a long way to go. He added that what Albany is receiving from Lebanon is a godsend, and thank you.

Joint Special Session Cities ofAlbany & Lebanon- April 4, 2007 Page 4 of7

57 Councilor Rebecca Grizzle said there may come a day when Lebanon no longer uses the canal, relinquishing the whole thing to Albany. Toombs said Lebanon is looking at an alternate site for back up, like Albany did with the Albany-Millersburg Treatment Plant.

Miller said the canal needs to be re-dug the way it was originally. It was only in operation for two years, then morphed into a water supply and has really not had any proper maintenance since it was built. He compared it to canals in the Eastern United States, such as the Erie Canal. The Albany Lebanon Canal is not much more than a big ditch, which happens to be full ofwater because ofthe dam.

Johnson asked, does the canal have dirt banks? Dennis said yes, we're drinking out ofa dirt ditch.

Miller recalled the 1964 flood that almost breached the bank of the canal by the old Lebanon Safeway store.

Elliott asked how the nutria trapping is going. Zahorcak said we have lots more to go. Reid said nutria will be an ongoing problem.

Dennis and Ruef said staff from each city will continue to work together. Toombs said he appreciates the collaboration.

ALBANY-OWNED PARK PROPERTY WITIDN LEBANON CITY LIMITS

Ruef provided a map ofthe Master Plan for the Lebanon Water System, including a location for a new Water Treatment Plant (WTP) site. He explained two options: a new WTP or bank wells along the Santiam River that would require far less treatment and no fish screens. He said that Lebanon is too big to expect wells to meet all its needs. A new WTP location could use the canal or the river as intake. Lebanon already pulls non-potable water out ofthe head gate for fire flow.

Ruef said that of all the sites, Albany owns two. If Lebanon locates its intake right behind the fish screen, it doesn't have to worry about contamination. They are not asking Albany to consider anything now; they have hundreds of other acres to look at. One other place is north ofthe Grant Street Bridge adjacent to River Park. It's a place for bank wells. The site is about six acres, goes across the river, and much ofit is in the IOO-year floodplain. Lebanon has talked to Albany staffin the past about acquiring it as an extension ofthe park. The property is very wet and is already used for homeless camping. Lebanon would like to open it up.

Ruefshowed a 1936 photo ofthe area which was then a mill site. The Albany property was where a dam was located by the canal, a wooden crib dam, which was later taken out or rotted out. Albany also owns another tax lot offOlive Street in the north part oftown where a property owner has been landscaping down to the edge ofthe canal. Ruefsaid if Albany ever entertains the idea ofdisposing ofeither ofthese properties, please talk to Lebanon. The property that they would look at soonest is the area north ofRiver Park.

Konopa said that Albany has a City ordinance that people aren't allowed to do tent camping in City parks. Albany City Attorney Jim Delapoer said that Albany's ordinances don't apply outside the City limits, though the property could be posted for no trespassing and the police department could be given authority to arrest there.

Joint Special Session Cities ofAlbany & Lebanon - April 4, 2007 Page 5 of7

58 Johnson asked if Lebanon had named its homeless camp. Lebanon City Administrator John Hitt noted that the canal is no longer adjacent to the park; what remains is a remnant from the past.

Konopa said she hadn't known that Albany owned that piece ofproperty.

Johnson said she could understand how we came to own the property by the dam but how did we get the others? Ruef said they were all along the canal at one time or another.

Reid asked if Lebanon has a timetable for a new Water Treatment Plant. Ruef said they would probably begin working on it this year.

FERAL CATS DISCUSSION

Killin said that Councilor Dick Olsen was unable to attend tonight's meeting and this was his issue. Killin explained the City of Albany efforts three years ago to figure out what to do with stray and feral cats. He said it comes down to the science of it; to get rid of feral cats, they must be spayed and neutered and the colonies eventually die out. He said Albany has about 1,000 feral cats in the downtown area. The City hosted a cat summit recently and that resulted with County Commissioner Cliff Wooten's idea of putting $25,000 of Linn County money toward spay and neutering through specific organizations. Killin said the Albany Council has not taken this up as a specific topic, but he would like to see them put some money toward spay and neutering or housing.

Johnson said she works with one of the ladies involved with KAT (Kitty Angel Team). After the County Commissioners funded their program, by the first week in March they had already spayed and neutered 30 cats and had 33 waiting, with another 60 after that. A lot ofthe strays are coming from the Scio area. Sick cats are taken to the Linn County Dog Control to be euthanized.

Miller asked, how do you ever get ahead of their growth curve? Konopa said to do something is better than nothing. Toombs said Wooten was bringing this issue to the Lebanon Council on April 11. Reid asked how many cats can be spayed for $25,000? He said the community should look at chipping in, along with the County's contribution and whatever the City of Albany contributes. Elliott said he has had a number of calls, but there is nothing Lebanon can do unless the cats are being abused.

Fisher asked, what happens now that the shelter is not taking any Linn County cats? Killin said that they will still take cats from Benton County Albany residents.

PUBLIC COMMENTS

An unidentified woman said she wanted to applaud the Albany City Council for acknowledging the cat problem. She said KAT adoption did 88 spays in March. It's mostly a matter of contacting enough veterinarians. She said a female cat at six months can start having one to eight kittens and up to three litters per year. Not many people will own up to having a pregnant female.

Reid said about three years ago, the Utili County Commissioners came up with the idea ofa County gas tax to pay for street maintenance. He wants to solicit support from communities to chip in and support a County gas tax. Reid also thanked the Lebanon Council for their support of the Area Commission on Transportation.

Joint Special Session Cities ofAlbany & Lebanon - April 4, 2007 Page 6 of7 ADJOURNMENT

There being no other business, the meeting adjourned at 8:46 p.m,

Respectfully submitted,

Marilyn Smith Management Assistant/Public Information Officer City of Albany

~L&:L Ke eth I. Toombs, Mayor ofLebanon

ATTEST: :J' 1/ ,.,L7-'JU:':..io>te-2,t,-,,~LCk~,;:1"-£e±d~L,,--u;(d----,"~.dk=·",,'j-]<-L-/_­ Linda Kaser, City Clerk/Recorder City ofLebanon

Joint Special Session Cities ofAlbany & Lebanon - April 4, 2007 Page 70/7

60 GAPS approved: Jan 14, 2008· Council approved: Joint Meeting Minutes 1 December 05,2007

_0= a __•_ ------"-----.w__ JOINT MEETING OF SCHOOL BOARD ----- ... -- and ---- ALBANY CITY COUNCIL. I ~~ Greater Albany School District office IIDB . December 5, 2007 . for our FUTURE 7:00 p.m.

Minutes CALL TO ORDER School Board Vice.Chair Tom Sramek called the meeting to order at 7:00 p.m.

LiisaReid Gave advance notice ofher absence : Tom Sramek Jr. Board Vice Chair , Frank Bricker Gave advance notice ofhis absence Don Bacher Director Sandi Gonion Director

Doug Killin Gave advance notice ofhis absence Sharon Konopa Council President Dick Olson Councilor Daniel Bedore . Councilor Ralph Reid Councilor Bessie Johnson Councilor JeffChristman . Councilor .

Pat Bedore .Superintendent SteveKunke Assistant Superintendent Maria Delapoer Human Resources Director Russell Allen. Business and Operations Director

A list of others present is filed with the original minutes. It was noted that a quorum ofthe School Board and City Council was present.

PLEDGE OFALLEGIANCE School Board Vice Chair Tom Sramek led attendees in the pledge ofallegiance.

INTRODUCTIONS Board Vice Chair Tom Sramek introduced Board members Sandi Gordon and Don Bacher.

Council President Sharon Konopa introduced the City Council members Dick Olson, Dan Bedore, Ralph Reid, JeffChristman, and Bessie Johnson.

Board Vice Chair Sramek asked staffmembers in the audience to introduce themselves. Staffmembers did so.

61 Joint Meeting Minutes 2 December 05, 2007 BUSINESSFROM THE PUBLIC None.

REPORTS CITYIDISTRICTPARTNERSHIP City Manager We,s Hare said that he wished to highlight some ofthe City's partnerships with the school district. He spoke ofa partnership entitled Safe Routes to School which encourages children to walk or ride bicycles to class. He said that the City was attempting.to attract grant dollars. He stated that there is a national grant program for Safe Routes to SchooL He said that the Robert Wood Johnson Foundation began an initiative entitled Leadership for Healthy Communities of which Safe Routes to School is a part. He noted that the foundation was funding a number ofprograms to promote active living and proper nutrition in the schools.

Mr. Hare also spoke ofthe partnership in siting the new schooL He said that the new school will be close to a number ofnew neighborhoods and will be a campus to which students can walk or ride bicycles. He reported that the City staff was working to address right-of-way issues:

Superintendent Pat Bedore spoke ofpartnerships regarding facilities. She reported that the City Parks and Recreation Department shares school district facilities for the benefit ofthe community. She spoke ofthe special support provided by the police department. She said that children have said that they feel safer knowing that the police are familiar with the interior of district schools. She also spoke .of the school resource officers and DARE officers. She said that the police department and the school district maintain a current data base ofschool facilityinfonnation.

Ms. Bedore also spoke of partnerships with the Albany Fire Department and the community pooL She spoke ofsidewalks in the North Albany area and offerings by the public library. She noted that the City and school district share access to a fuel facility. She also thanked the City staff for its help in school bond projects.

Director Gordon asked of the fuel facility. District Business and Operations Russ Allen replied that the City, school district, Linn County and the Linn Benton Community College share in the operation ofthe fuel facility. He said that the site, located on Ferry Street near 34th Avenue, provides gasoline and diesel fuel to school buses and other vehicles.

COMMUNITYGROWTH Business and Operations Director Russ Allen spoke ofthe district capital construction projects. He said that during the suuuner of 2007, the district completed 36 projects, totaling $7 million, at 18 district sites. He highlighted the projects, stating that the school district replaced more than one acre of sidewalk and concrete paving at South Albany High School, replaced gymnasium flooring at seven schools, installed new bleachers at all three middle schools, and resurfaced the roofing at three schools. He reported that the school district also replaced boilers at two schools, resurfaced tennis courts and tracks at South Albany High School and West Albany High School, installed perimeter safety fencing at three schools, and installed modular classrooms at three schools. He also stated that non-bond funds were used to install new boilers at four schools, replace a large section ofthe Grand Prairie Maintenance Facility and prepare for the construction ofa new building for Albany Options SchooL

62 Joint Meeting Minutes 3 December OS, 2007 Mr. Allen said that design committees were at work drawing plans foradditioris and major renovations to Periwinkle Elementary, North Albany Middle and South Albany and West Albany High Schools. He also stated that design ofthe new school was completed and stated that he hoped to put the contract out to bid soon.

Councilor Johnson asked ofthe grade levels for the new school. Mr. Allen said that the school would be partnered with Clover Ridge Elementary School. He said that Clover Ridge School would be a grade K-2 campus and the new building would house students in grades 3-8..

Mr. Hare asked of the number of langnage spoken in the homes of Albany school children. Student Services Coordinator Wayne Goates replied that the families of Albany students spoke 18 different languages in-theirhomes.

Mr. Hare spoke of the construction of the new waste water treatment facility. Construction is costing $72 million. He also spoke ofa number ofpark and recreation projects. Re cited a partnership with the Albany Boys and Girls Club as an example. He said that there were also a number of street projects. Mr. Hare described improvements the city's drinking water plant. He said that the City also performed a seismic retrofit ofthe Vine Street water treatment facility. ,. .

Mr. Hare spoke ofthe need toreplace the fire station. He said that the police department facility needs to expand as well. .. ..

Student Services Coordinator Wayne Goates said that enrolhnent at the Albany School District had increased by 200 children in the last year, 450 students in the past two years and LlOustudents in the last six years. He offered a handout that illustrated the past growth and projected expansion. He noted that builders were constructing 1,084 new homes within the city. He said that it was too soon to estimate when the..new sites would be fully developed, but he noted that birth rates for families already in Albany were mcreasmg.

Councilor. Konopa asked if the district would have sufficient space for the new students. Mr.. Goates estimated that the district would have sufficient space at the elementary and middle school levels. He forecasted that the high schools would be overcrowded within 4-8 years..

Director Gordon asked ofthe construction ofparks. in the neighborhood of. the new school. Mr. Hare said that the City wished to build a new park in the area ofthe new school but he would concentratethe current efforts ofhis staffon supporting the new school site.

LEGISLATIONOFMUTUAL INTEREST Director Sramek asked Business and Operations Director Russ Allen to discuss Senate Bill 1036, the construction excise Tax. Mr. Allen stated that the new law permits school districts to impose an impact fee upon new construction. He said that the law would permit the district to identify high growth areas and . acquire land early for a future school. He emphasized that the measure would not replace the requirement. for a future school bond but estimated that the tax would lessen the necessary value ofthe bond.

Mr. Allen spoke of the requirements to impose the construction excise tax. He said that the district developed a long range facility plan. He said that the law also required.that the school district develop an intergovernmental agreement with a government entity for the collection ofthat money. He said that staff

63 Joint Meeting Minutes 4 December OS, 2007 would have a draft ofthe two documents for the School Board to consider at its next meeting.

Councilor Bedore asked of the estimated amount that would be collected. Mr. Allen replied that the City Planning Department estimated that themeasure would generate approximately $1 million each year.

Councilor Konopa said that she was pleased that the school district was looking ahead. She added that she hoped that future legislative actions might impose a higher rate that might more closely addresses the true costs ofincreased enrollment.

Councilor Johnson asked how the construction excise tax funds Could'be used by the school district. Mr. Allen replied that the money could be used to purchase land, construct new schools, or make capital repair or improvements to existing schools. He emphasized that the money could not go to the general fund.

Councilor -Johnson-noted- that the construction excise-tax-would increase the.cost.of a new home. She suggested that the district identify how the funds would be applied.

Director Bacher said that he had been approached by a person from a non- profit organization who asked whether his agency WQuid be exempted from the construction excise tax. Director Bacher stated that the . School Board would have the authority to narrow the focus ofthe tax. He said that Board members asked staff to identify the local activities which would be exempt ifthe Board granted an exemption to 50l(3)c organizations.

Council Konopa said that the City has not exempted any construction from systems development charges. She suggested that the Board review the definition of"affordable housing" under the law:

COMMUNITYSTRATEGICDIRECTIONPROCESS Don Bacher spoke of the Schools for Today, Tomorrow and the Future Committee. He said' that community leader Bill O'Bryan would chair the organization. He said that the committee would engage the community in the development ofa strategic direction for the future ofthe Greater Albany School District. . He said that the committee would seek input from multiple and diverse members of the community and make its recommendations to the Board. He said that the committee met earlier that day.

Director Bacher said that the committee would participate in a two-phase process. He explained that the

first phase would determine the strategic direction for. the district. He said that the committee. would meet with people in the community and ask several questions: What does the district stand for? What are the district's core values? What should a graduate be like? What kind ofleadership does the district need in its .new superintendent? He said that the second phase would.be the development of a strategic plan to accomplish the goals and values ofthe district.

Director Bacher said that the Board was working on a separate process to select a new superintendent. He said that the new superintendent would contribute to the creation ofthe strategic plan.

Mr. Bill o'Bryansaid that the work would be an exciting and important process.

Councilor Christman suggested that the Schools for Today, Tomorrow and the Future Committee include members ofthe business community. Director Bacher repliedthat the committee included business leaders.

64 Joint Meeting Minutes 5 December 05, 2007 BUSINESS OF THE COUNCIL AND BOARD Councilor Johnson said that she had previously lived in cities with high growth. She asked if the school district had considered year-round schools.

Superintendent Bedore said that the district had discussed the possibilities of year-round school. She said that there was little conununity interest in the schedule. She stated that a year-round schedule would create a nurnber ofchallenges with facilities, employees, and families with multiple children in the school district.

Director Gordon spoke ofher desire to see full-day kindergarten and pre-kindergarten programs. Councilor Johnson expressed caution about moving children into school too early or overloading children with too much school work. She said that some students do not have time to be children.

Director Gordon asked of the summer participation at the Swanson pool. Aquatics Coordinator Rob Romancier replied that sununer 2007 attendance was above summer 2006 usage.

Board Vice Chair Sramek said that the School Board was interested in identifying additional measures of student success. He said that the Board did not wish to rely solely upon test scores in evaluating student success. He said that the Board wished to develop a vision of what graduates of Albany high schools should look like and what skills and character traits the graduates should have in order to enter the work force. He noted skilled employees were an important component ofeconomic development.

Councilor Olson asked why the school district was locking the Central Elementary School play yard. Mr. Allen replied that he was not aware that the district was locking the gates outside ofschool hours. The gates are locked during the day for student safety.

Councilor Johnson asked if it would be possible to build a second StOlY to the existing high schools rather than build a new school. Director Sramek said that adding a second story would require reinforcement of the first floor. He said that there would also be accessibility issues. He added that it would be difficult to know what a school of the future would look like. Mr. Allen stated that the high schools do not have sufficient acreage now for athletics and parking. He said that adding additional classrooms to the campus would further add to the overcrowding.

Director Bacher thanked the City Council for the opportunity to meet jointly.

Board Vice Chair Sramek thanked the staffs ofthe City and school district for working together.

ADJOURNMENT Board Vice Chair Sramek adjourned the meeting at 8:28 p.m. ~~~ Tom Sramek, Board Vi.feChaiT P,Q~-c-----'

AVPr1..CU(;:\~ .j14'VV/.\-lrL'T fLI,2.ooS'"

65 Joint Meeting Minutes 6 December 05, 2007 (Recorded by Jim Haggart) Business and Report Items - Document Reference (filed with original minutes) Copies of documents presented for action and report purposes are located in the district audit folder prepared for permanent record. .

66 LAC APPROVED: December 5, 2007 CC APPROVED: _

CITY OF ALBANY LANDMARKS ADVISORY COMMISSION & CITY COUNCIL MONTEITH EXPANSION OPEN HOUSE cA/jj;ihO'.. ./fd. City Hall Municipal Court Chamhers, 333 Broadalbin Street .-/ Wednesday, November 7, 2007 7:00 p.m.

MINUTES

Landmarks Commissioners present: Linda Herd, Tom Hinckley, Oscar HuH, Derryl James, Roz Keeney, Heidi Overman, and Dave Pinyerd

Council Members Dan Bedore, Jeff Christman, Bessie Johnson, Dick Olsen and Ralph Reid, JR

Staffpresent: Planner II Anne Catlin and Administrative Assistant Sheena Dodson

Others present: Kimberli Fitzgerald (Consultant), approximately eight audience members

CALL TO ORDER

Chair Oscar HuIt called the meeting to order at 7:02 p.m.

MONTEITH DISTRICT EXPANSION OPEN HOUSE

Project Overview Planner II Anne Catlin gave a brief report on why the City was considering an expansion to the southwest corner ofthe Montieth National Register Historic District. She said a survey class at the University of Oregon taught by Commissioner Pinyerd, needed a place to conduct survey work. Over a few years time, several hundred properties were surveyed. They were then analyzed by Pinyerd for their potential as National Register properties or districts. Several areas have potential to be National Register eligible, including an area adjacent to the Monteith District.

Catlin said she receives a lot ofphone calIs from people in historic homes asking what benefits are available. There are none ifthey are not on the National Register. It is hard to list a property on the National Register individually. There are historic homeowners that want to be on the National Register in order to qualify for the benefits.

The Landmarks Commission reviewed Pinyerd's work and thought it might be good to first explore interest in an expansion to the Monteith District. A public meeting was held with neighbors in the expansion area in 2006 to assess interest in pursing the project. Upon finding there was more interest than not, the City was awarded grant money to hire consultant Kimberli Fitzgerald to work on the nomination form.

67 MonteithExpansion OpenHouse Wednesday, November7, 2007

Fitzgerald and her colleague Tama Tochihara have been researching the area and properties and analyzing where modified boundaries should be. A change in historic district boundaries usually does not happen but the research for the Monteith district was done in 1970s. The district edges are jagged and followed integrity, where today plat maps and streets· rights of way are more common district boundaries. After working with the State and with the Landmarks Commission, the proposed boundaries are in Exhibit A. (Exhibit A, picture ofproposed district expansion area.)

Catlin said that the purpose ofthe meeting tonight was to make sure that there was still support from the property owners before moving the project to the State. Because district expansions are unusual, they do not koow ifthis will make it through the state and national levels.

Consultant Report Fitzgerald said that she has evaluated an enormous amount ofdata from Pinyerd and his crew. In the end, consensus is to have the district expansion follow a historic plat map for this area. This will help clean up the edges and boundaries. She said that in 2000, the period of significance for the district was expanded to include 1915 to 1945. She said the trend was Bungalow houses until around 1930. Between 1935 and 1945 the popular house style was World War II (WW2) cottages. These are located to the outer SW edge. She said there was a lot of development because ofCamp Adair, which was used to train military troops.

Fitzgerald said the next steps are comments and revisions. If there is any information about a particular house - now is the time to add it. She said that by next spring the State Advisory Committee would have their revisions to the district ready. If the committee supports the expansion, the nomination will go to the National Park Services. They will have their revisions, and then the expansion would become final.

Catlin said she would like to answer any questions or concerns about what regulations and benefits there are for National Register properties. She then described the different benefits ­ such as the State's Special Assessment Program and building code leniency. She said that the information is in the packet that was sent in the mail to all property owners.

Catlin said that on the restriction side, there is a preservation ordinance that applies to all new construction and exterior alterations of buildings built before 1946. Changes to the interior are not regulated and paint colors and maintenance do not require historic review.

Councilman Johnson asked for clarification on whether or not homes had to be open once a year for four hours. Catlin said that only those homes participating in the Special Assessment Program had to hold an annual open house. Commissioner Herd added that the owner decides what day and times to hold the open house.

2 68 Monteith Expansion OpenHouse Wednesday, November 7, 2007

Public Testimony:

Sean Ewing, 927 12th Avenue SW asked about restrictions and approvals.

Catlin says it varies case by case. Ifexterior alterations are not visible from the street, Catlin review it and approves it within a week or so. Alterations visible from the street and requests for substitute materials require approval from the Landmarks Advisory Commission (LAC), which meets once a month. She stated that the denial record is very low, and all have related to requests for vinyL

Ewing asked if landscaping around the property is regulated. Catlin said no. The preservation program focuses on protecting the house. She said there are citywide regulations for cutting very large trees and fences.

Richard Shanks, 1125 Walnut Street SW said his property was on the boundary ofthe proposed expansion area. He asked what restrictions he would have.

Catlin referred to a handout that explains the historic evaluation codes used by the State to classify each property. She stated that there is not a review process if the classification is non­ historic, only for those classified historic.

Rosemary Shanks, 1125 Walnut Street SW asked ifthey could install vinyl windows and change their siding.

Catlin said that because their house was constructed after 1945 and was classified as non­ historic, the house would be exempt from historic regulations.

Commissioner Pinyerd asked Catlin to talk about maintenance.

Catlin said the Code does not regulate routine maintenance. She gave examples of a new roof, painting, new matching stair treads or pieces of siding. She said that nothing on the interior requires historic review. A back patio or change not visible from the street would require a staff level review. Regarding foundations, she said that most foundations, if finished on the exterior in the same manor as the previous foundation, would not require historic review.

Catlin said that the next step is to send the nomination to the State Historic Preservation Office SHPO. They will mail all property owners a notice and there will be a formal opportunity for the property owners to object to being in the district. If the district expansion is approved by the SHPO and the National Park Service, there would then be public hearings at the local level to change the overlay district boundaries. This would be an opportunity to re-evaluate the preservation regulations.

Catlin stated that she knew of only one comer where a few people were against the nomination. She said most are in support.

3 69 MonteithExpansionOpenHouse Wednesday, November 7, 2007

Commissioner Hult asked ifanyone present was against it. There were none.

Council and Landmarks Discussion and Direction:

The City Council and Landmarks Advisory Commission were all in favor to send the nomination on to the SHPO.

Johnson asked how many extra houses would be included in the expansion.

Catlin said that approximately 85 properties would be included. She said that a few ofthose were duplexes and one was multi-family so there would be more than 85 units.

NEXT MEETING DATE

The next meeting ofthe Landmarks Advisory Board is scheduled for Wednesday, December 5, 2007, at 6:30 p.m.

ADJOURNMENT

Hearing no further business, Chair Hult adjourned the meeting at approximately 7:40 p.m.

Submitted by, R)1'iewed by, I. {it u: (;i-Ie~ Sheena Dodson Anne Catlin Administrative Assistant Planner II U:\Community DevelopmentlPlanninglHistoric\2007\minutesWov.07.07withcc.doc

4 70 Planning Commission Approved: 5-24-10

Bndget Committee Approved: 5-18-10

City Council Approved: _

CITY OF ALBANY CITY COUNCIL/PLANNING COMMISSION/BUDGET COMMITTEE JOINT WORK SESSION CAPITAL IMPROVEMENT PROGRAM (CIP) Council Chambers Monday, April 20, 2009 7:15 p.m,

MINUTES

CALL TO ORDER

Mayor Konopa called the meeting to order at 7:20 p.m.

Council, Planning Commission, and Budget Committee members present: Councilors Jeff Christman, Ralph Reid, Jr., Floyd Collins, Bessie Johnson, Dick Olsen, and Bill Coburn. Planning Commission members David Faller, Lolly Gibbs, Cordell Post, Wayne Rackham, Dala Rouse, Mark Spence, Michael Styler, and Scott Whitney. Bndget Committee members Susan Folden, Ray Lusk, Colleen Keller, C. Jeffery Evans, Wendy Kirbey, and Steve Terjeson,

INTRODUCTION

Finance Director Stewart Taylor explained that this meeting is to review the Proposed Capital Improvement Program (CIP) and for staff to receive inpnt from the City Council, Planning Commission, and Budget Committee.

COMMUNITY NEEDS

Community Development Director Greg Byrne explained the Community Needs section ofthe CIP.

ACCESSffiILITY

Byrne reviewed the Accessibility section of the CIP and questions 8 and 9 from the agenda (see agenda file). There was discussion about the extent of Americans with Disabilities Act (ADA) compliance and funding priorities.

PARKS

Parks & Recreation Director Ed Hodney reviewed the Parks sections as well as covering qnestions I, 2, 10 throngh 20 from the agenda (see agenda file). He noted that there are no projects in Fiscal Year 2013 due to a reshuffling offunds resulting from dramatic reductions in parks System Development Charges (SOC) revenue.

PUBLIC FACILITIES

Hodney reviewed the Public Facilities section and questions 21 and 22 from the agenda (see agenda file). There was discussion regarding the property acquisition for a new police station and fire station. Police Chief

71 Albany City Council CIP Joint Work Session wi Planning Commission and Budget Committee

Ed Boyd and Fire Chief John Bradner discussed issues regarding separate versus combined Fire and Police facilities.

REVITALIZATION

Urban Renewal Manager Kate Porsche reviewed the Revitalization section and question 23 from the agenda (see agenda file).

STORMWATER

Public Works Director Diane Taniguchi-Dennis reviewed the new Stormwater section of the CIP. She provided an overview as to the need for the section based on both maintenance and water quality.

TRANSPORTATION

Taniguchi-Dennis reviewed the Transportation section and questions 24 through 37 from the agenda (see agenda file). There was discussion regarding the impact of potential federal stimulus funding would have on various projects.

WASTEWATER

Taniguchi-Dennis reviewed the Wastewater section and questions 3 and 38 from the agenda (see agenda file).

WATER

Taniguchi-Dennis reviewed the Water section and questions 4, 5, 39, and 40 from the agenda (see agenda file). There was discussion about acquiring additional water rights from the Adair Water Treatment Plant and what priority it should have.

ADJOURNMENT

There being no other business, the meeting adjourned at 9:15 p.m.

Respectfully submitted by,

Chris Cerklewski, Civil Engineer III

CC:bl

G:\A/alJ'\CC JointMeetingsI04.20.09.CIP.Counci/.Planning.Budge/.min.doc

2 72 GAPS approved: Nov 23, 200 Joint Meeting Minutes 1 October 26, 2009 Council approved: ... _-• -----.---_ ­ -----~--... _- JOINT MEETING OF SCHOOL BOARD ----_ and ---- ALBANY CITY COUNCIL vA/JjdhiJ Greater Albany School District office "'''''--7''· October 26, 2009 for our FUTURE 7:00p.m

Minutes CALL TO ORDER School Board Chair Liisa Reid called the meeting to order at 7:00 p.m.

Liisa Reid School Board Chair Sandi Gordon gave advance notice ofher absence Frank Bricker Director Jerry Boehme Director Bill O'Bryan Director Amber Weber Student Board Member

Sharon Konopa Mayor Dick Olsen Councilor Bill Coburn Councilor Floyd Collins Councilor Bessie Johnson Councilor Ralph Reid, Jr. Councilor JeffChristman Councilor

Maria Delapoer Superintendent Steve Kunke Assistant Superintendent Wes Hare City Manager

A list of others present is filed with the original minutes. It was noted that a quorum ofthe School Board and City Council was present.

PLEDG~ FALLEGIANCE School Board Chair Liisa Reid led attendees in the pledge ofallegiance.

INTRODUCTIONS Board Chair Liisa Reid introduced Board members Frank Bricker, Jerry Boehme and Bill O'Bryan.

Albany Mayor Sharon Konopa introduced City Council members Jeff Christman, Bill Coburn, Floyd Collins, Bessie Jobnson, Dick Olsen and Ralph Reid.

Albany School District Executive Assistant Jim Haggart introduced South Albany High School Student

73 Joint Meeting Minutes 2 October 26, 2009 Reporter Emily Christopherson. Mr. Haggart said that Emily is a senior at South Albany High School where she is taking AP English, AP Calculus, AP European History and German and her favorite subject is English. Mr. Haggart said that Emily is a soccer player and her family includes Sydney, an 8th grader at Calapooia Middle School and Lindsey, a sophomore at Westem Oregon University. Her parents are Jon and Sandy Christopherson.

Board Chair Reid welcomed Emily Christopherson.

Mr. Haggart also introduced Memorial Middle School Student Reporter Forrest Thomas. Mr. Haggart said that Forest is an eighth grader at Memorial Middle School taking Geometry and Physical Science at West Albany High School and Language Arts, Social Studies, Computers, Career Explorations and P.E. at Memorial School. Mr. Haggart said that Forrest participates in football at the Albany Boys and Girls Club and track at Memorial School where he excels in the long jump and 100-meter dash. He has a brother Chance who is a graduate ofAlbany schools. His mother is Diane Thomas.

Board Chair Reid welcomed Forrest Thomas.

STUDENTREPORTERS South Albany High School Student Reporter Emily Christopherson delivered her report. A copy of her comments is attached to these minutes.

Memorial Middle School Student Reporter Forrest Thomas delivered his report. A copy ofhis comments is attached to these minutes.

BUSINESSFROM THE PUBLIC None.

REPORTS SAFE ROUTES TO SCHOOL Superintendent Maria Delapoer summarized the Safe Routes to School Program. She thanked Albany City Manager Wes Hare for organizing and continuing the Safe Routes to School Committee. She noted that Mr. Hare wrote the grant that funded the program coordinator position.. She stated that the City was working with the district to extend sidewalks, position stop signs and install crosswalks so that students could develop a habit ofsafely walking or biking to school.

City Manager Wes Hare said that it would be appropriate to recognize the real force behind the Safe Routes to School Committee. He said that the City had nominated Jim Lawrence for the Governor's Fitness Leadership Award. Mr. Hare explained that the award is given to community leaders who promote fitness through their own example and sacrifice. Mayor Konopa presented the award to Mr. Lawrence.

Mr. Lawrence thanked Mayor Konopa for his award. He spoke of the bicycle safety classes he conducts with elementary school children. He said that the Safe Routes to School Program complements those classes in helping children tum their bicycles into useful tools. He said that the best way to improve fitness is to build fitness into one's daily life.

Safe Routes to School Coordinator Tove Gilbert-Morgan delivered a slide presentation to report on the Safe Routes to School program. She stated that the program is a nation-wide initiative by community

74 Joint Meeting Minutes 3 October 26, 2009 leaders, schools and parents to encourage more children to safely walk or bike to school. She stated that the pr9gram seeks to improve student health, reduce traffic congestion, and lessen the impact upon the environment, making communities more livable for everyone.

She said that the cormnunity was blessed to have an amazing coalition ofCity leaders including Wes Hare, Ron Irish, Willis Hill and Marilyn Smith. Ms. Gilbert-Morgan thanked Superintendent Maria Delapoer, school principals Tonja Everest, Jason Hoffert-Hay, Heather Huzefka, and teacher Justin Roach. She also thanked Bicycle and Pedestrian Commission members Bill Pintard and Jim Lawrence and Albany police officer Ken Fandrem.

Ms. Gilbert-Morgan said that the program seeks to increase the percentage ofchildren who walk to school from 20 to 30 percent and to increase the percentage ofstudents who bike to school from 5 to 10 percent by the end of the school year. She said that the program also seeks to reduce the number of parent-driven arrival trips by 10 percent and to reduce the number of school bus routes by one route per school by the beginning ofthe 2010-201 I school year. She stated that the third goal was to establish a walking/riding rate of 40 percent at the new Timber Ridge School. She summarized the walking, riding, busing, and family­ provided transportation rates at each of several campuses. She also described the district's participation in the International Walk and Bike to School Day on October 7. She noted that 77 percent of the Oak Elementary School children participated that day.

She spoke ofthe program's "Wish List" to include improving sidewalks, increasing signage, implementing crossing gnards, and providing covered bike parking at the schools.

COMMUNITY GROWTHAND DEVELOPMENT: CITY GROWTH TRENDS Albany Community Development Director Greg Byrne said that Albany is growing faster than state and national trends. He said that he expected that growth to continue after the economy improves. He said that single family home development activity in the City is down sharply. He provided a slide to indicate the available growth locations ofthe City.

Mr. Byme reported that the City Planning Commission reviewed that day, a proposed cooperative agreement between the City and the Greater Albany School District and recommended the document be forwarded to the City Council. He said that he met recently with Superintendent Delapoer to discuss community growth and new school location requirements. He recommended that the City and school district "Not get excited right now, but get excited in approximately five years." He estimated that future growth would be greatest in the northem and eastem regions ofthe city.

He spoke ofjobs in the community and noted the future closing ofthe International Paper plant. He noted that Albany's Oregon Freeze Dry and enerG2 received substantial grants from the federal stimulus package. He said that he expected the federal grants to yield some construction at the Oregon Freeze Dry plant, noting that the company represents 60 percent of the freeze drying production in the country. He said, however, that the expansion would not produce many long-term jobs. He said that his office was seeing some construction at Absorbent Technologies and noted that Waverly Assisted Living recently received an operating license. He said that he was working with state agencies regarding the placement of a Loew's store on Ninth Avenue and probably a WalMart store east of the interstate highway. He said that the Downtown Economic Development Committee was formed,

75 Joint Meeting Minutes 4 October 26, 2009 COMMUNITY GROWTHAND DEVELOPMENT: FUTURE ENROLLMENTGROWTH Albany School District Student Services Coordinator Wayne Goates said that he is a former member ofthe Safe Routes to School Committee. He described the committee as a cooperative effort between the city, school district and citizens of the community. He congratulated Jim Lawrence on his award. He recalled that when someone broke into the bicycle safety trailer and stole a number ofbicycles, Mr. Lawrence spent the night in the trailer to prevent any further thefts. He said that Mr. Lawrence then pedaled throughout the surrounding neighborhood and recovered 7 of the 9 bicycles. Mr. Goates said that dedication like that makes the community a great place to live.

Mr. Goates presented a slide program to indicate recent and projected student enrollment. He noted that during the three year period of2004 - 2007 the district grew by 650 students. He estimated that enrollment would grow slowly during the next two years before growing rapidly after that. He attributed the growth to very high birth rates in 2006-2008. He said that during the 1980's school enrollment declined by 931 children. He said that school populations increased by 915 students during the 1990's and further increased by 1,188 students from 2000-2009. He forecasted a growth of747 children in the next ten years.

He recalled that when the school districts merged in 1979, the Greater Albany School District closed nine very small schools including: Crabtree, Dever-Conner, Knox Butte, McFarland, Millersburg, Oak Creek, Oakville, Price and Riverside. He explained that the vast majority were two- or three-room schools.

Mr. Goates projected that Albany schools would have sufficient capacity for the next ten years, although high school enrollment would be tight. He cautioned that high school enrollment would near 3,000 students within ten years after which the district would have to address those numbers.

PERFORMANCE MEASUREMENTS Assistant Superintendent Steve Kunke said that he and Student Services Coordinator Wayne Goates would discuss the number ofmethods by which teachers and administrators measure the performance of schools. He said that several tools have become very public within the last several years. He said that the measurements consider state and federal accountability. He said that Mr. Goates would discuss the Oregon Report Cards.

Mr. Goates said that State regulations dictate that school districts report to all parents by January 15 with a district and school report card. He said that schools are rated as either "Outstanding, Satisfactory or InNeed ofImprovement." He said that specifics of the 2008-09 reports would not be releasable to the public until November 10, but he could state that none of the Albany schools were graded as "In Need of Improvement" and a third ofAlbany schools were graded as "Outstanding."

He reported that the report cards examine student academic performance, attendance and graduation rates. He said that a new measurement this year examines growth. He explained that if a student does not meet the state benchmarks, the state would review the student's scores in grades 3-8 to determine ifthe student is making the necessary growth now to later achieve the benchmarks. He said that if the student is making sufficient growth, the school would receive credit for helping the child.

Mr. Goates spoke of "Closing the Gap." He said that there are a number of student sub-groups such as special education, low income, English Language Leamers, and minority students. He said that one under­ performing student subgroup could cause the school or district to receive a "In Need of Improvement" grade and that an individual student could be counted in multiple student subgroup categories.

76 Joint Meeting Minutes 5 October 26, 2009

Mr. Kunke said that he would discuss the federal Adequate Yearly Progress requirements. He stated that the rating is a component of the No Child Left Behind Act. He said that Adequate Yearly Progress is all about sub-group performance. He stated that there are indicators such as attendance, testing and graduation rates, but the most important criteria is whether students in each ofthe nine sub-groups meet the academic requirements. He said that the academics can be achieved either by passing the state assessment tests or by showing 10 percent ofimprovement in the area the subgroup did not pass.

Mr. Kunke displayed an overhead slide to summarize student achievement in reading in grades 3, 4, 5, 6, 8 and 10. He said that the highest measurements on the slide indicated the test scores ofAlbany students as a whole. He said that a slightly lower line indicated the achievement of Albany students 'who are economically disadvantaged, that is, eligible for the free and reduced lunch meal program. Mr. Kunke noted that a still lower line indicated the performance of Hispanic students. He stated that the fourth and fifth lines, representing smaller percentages of achievement, reported the performance ofspecial education students and English Language Learners.

He reported that for the current school year, the district is required to have 59 percent ofstudents in every sub-group pass the mathematics test and 60 percent ofstudents in every sub-group pass the reading test. He stated that this is the third year of those standards. He said that next year, (2010-2011) the district will be required to have 70 percent of students in every sub-group pass the tests. He said that the following year, (2011-2012) the district will be required to have 80 percent ofstudents in each subgroup pass the tests. He said that by the school year 2013-2014, 100 percent of students in every sub-group will have to pass the tests. Mr. Kunke said that there would be federal consequences, chiefly in the way Title I and Title II money is spent, for districts failing to achieve Adequate Yearly Progress.

Councilor Olsen asked if sixth grade is the first year of middle school. Mr. Kunke replied that it is. Councilor Olsen asked if tenth grade is the first year of high school. Mr. Kunke replied that ninth grade is the first year of high school. Councilor Olsen noted that passing percentages appear to decline at the sixth and tenth grade levels. He asked if the tests for the older grades are more difficult. Mr. Kunke replied that the tests are more challenging at the middle and high school levels. Student Services Coordinator Wayne Goates reported that Albany sixth graders scored slightly below the state average while tenth graders scored above the state average.

Councilor Johnson asked ifit would be possible for special education or limited English students to achieve the passing rates required by the federal standards. Mr. Klinke said that he did not wish to count out Albany teachers in achieving the best possible results with their students.

Councilor Olsen asked of test scores for eleventh and twelfth grade students. Mr. Kunke replied that students are not tested at the eleventh and twelfth grade levels. He stated, however, the district was proud of its declining trend in high school dropout rates.

City Manager Wes Hare said that the City of Albany made a conscious effort regarding performance measurement. He said that several years ago the City joined the International City/County Management Association's performance measurement consortium. He said that this year, the city earned an award of distinction for performance measurement. He referred to the City Web site, ..www.cityofalbany.net.. and a page entitled "Dashboard." He stated that the site provides citizens with an impressive array ofinformation about the City budget and a depiction as to how the City performs relative to other municipalities.

58 Joint Meeting Minutes 6 October 26, 2009 City staffmember Bob Woods open the Web site and took viewers to the "Dashboard" page. He clicked on the large red button on the center of the page and caused the program to download. He explained that "Dashboard" program links to the City's financial system and generates reports. He noted that the City budget is cumbersome and difficult to read. He said that the "Dashboard" program is report generated and noted that it is possible to view information about a single City department. He turned to the budget ofthe Police Department as an example. He referred to separate accounts ofthe Police Department and noted that the information is updated each evening.

Mr. Woods said that the program delivers both performance and financial information. He said that the same page provides performance data and a comparison against national benchmarks. He said that the program also indicates performance goals for the future. He displayed a graph of the number of Police Department service calls and clearance rates for violent crimes. He explained that the City uses the program to asjc,"Why are things happening like this? And what can be done to make things better?" He cited as an example the Police Chiefs goal to reduce violent crime.

Mr. Hare said that the city has a low rate ofviolent crime but a higher than average property crime rate.

Mr. Woods said that he was not aware of any city which has a greater amount of fmancial informational available online to the public.

Board Chair Reid asked how City Council members use the information available. Councilor Reid said that he does not have internet access. Councilor Olsen said that he has not used the information. Mayor Konopa said that she refers to her paper copy of the budget. Councilor Collins said that the City Council uses the information to estimate what could be accomplished in the long term. Mr. Hare said that the program will help policy makers, staffand citizens better understand their city.

BUDGETISSUES Superintendent Malia Delapoer said that the school district's operating budget of $68 million is approximately $7 million less than would have been necessary to maintain last year's operating levels. She said that because of that budget reduction, the district has fewer teachers, classified employees and administrators. She said that each of the schools took a 20 percent reduction in their school supplies accounts and the district purchased fewer textbooks this year. She said that funding for athletic programs and after-school activities was reduced. She said that staff development programs were eliminated except for programs funded by federal grant money and the facility maintenance account was reduced to nearly emergency repairs only. She said that the summer school program was reduced and the child care center at Albany Options School was eliminated. She said that all of the district employees took unpaid furlough days.

Ms. Delapoer said that classroom numbers are up, approaching 30 children in elementary classes and 35-40 students at the high school level. She stated that some high school teachers have as many as 200 students to instruct and mentor each day.

She said that the Albany School District Budget Committee met on October 21 and discussed a number of budget variables such as the tax measures in January and whether the revenue forecast would allow the statewide release of $200 million of additional funds. She said that the worst case scenario might require that the district reduce the 2010-11 budget by $2-3 million. She said that the worst case scenario for the 2011-2012 budget might require the district to reduce expenditures by $7-8 million.

78 Joint Meeting Minutes 7 October 26, 2009

Councilor Coburn asked if the amount of Title I money received was anticipated. Ms. Delapoer said that this year, the Title I monies permitted the district to backfill some activities but she emphasized that there are many restrictions and reporting requirements associated with Title funds.

A Councilor asked about the impact ofthe closing ofthe International Paper mill, Ms. Delapoer replied that it would be difficult to measure. She said that the closure would directly impact the families ofsome ofthe district children, but explained that the loss ofproperty taxes from the plant would be felt statewide, rather than locally.

Mayor Konopa asked about the potential impact ofthe tax measures. Superintendent Delapoer replied that the 2009-2010 budget appears to be in place, but the tax measures could have an impact on the school district's 2010-2011 budget.

Councilor Olsen commented that Oregon ranks 49th nationally in business taxes. That is, only one state has a lower rate ofbusiness taxes, he said. Councilor Olsen said that opponents ofthe tax measure forecast that businesses would leave Oregon if taxes were increased. He stated that he doubted that notion as only the State of Tennessee has lower business taxes. Councilor Olsen noted that Oregon also ranks 49th in class sizes. He said that only one state has larger class sizes. He encouraged voters to support the tax measures.

Mr. Hare said that the City is not seeing a reduction in revenue. Rather, he said, the City is experiencing a slowing ofthe rate ofincrease ofincome. He stated, however, that the City was not experiencing a slowing of the rate of increase in expenses. He said that utility revenues were healthy, but noted that the revenues have to be strong because the City invested more than $100 million in new infrastructure during the past five years. He said that he was realistic enough to know that during the next few years, the City would need to make changes in the way it delivers services.

Director Boehme estimated that the school district would experience a $3 million dollar increase in PERS costs beginning 2011. He asked ofthe expected increase for the City. Mr. Hare estimated that the additional PERS cost would be $1 million.

SCHOOL DISTRICT CAPITAL PROJECTS UPDATE Superintendent Maria Delapoer presented a slide program. She recalled that in November 2006 voters in the community approved a $55 million bond to address growing enrollment and meet the educational needs of students. She said that $17 million of that bond went to local vendors in Linn and Benton County and more than $4.5 million went to businesses in the cities of Albany and Tangent. She stated that more than 185 projects were completed so far.

BUSINESS OF THE COUNCIL AND BOARD Councilor Johnson asked about the closure of the Oregon School for the Blind. Ms. Delapoer replied that the district mainstreams its blind students and has not used the services of the School for the Blind for several years.

Director Boehme commented that the Safe Routes to School Program included the installation of crosswalks near some of the schools. He said the flashing lights near South Albany High School appeared to be very effective. He asked if similar crosswalks were planned for other school sites. Mr. Hare replied that more crossing sites were planned.

79 Joint Meeting Minutes 8 October 26, 2009

Councilor Olsen congratulated the district on the new paint on Central Elementary School. He said that he was impressed with the enthusiasm ofthe school district maintenance employees.

Board Chair Reid announced that the School District newsletter "Extra Credit" was now available online from the district website.

ADJOURNMENT Board Chair Reid adjonmed the meeting at 9:03 p.m. ~~.

(Recorded by Jim Haggart) Business and Report Items - Document Reference (filed with original minutes) Copies of documents presented for action and report purposes are located in the district audit folder prepared for permanent record.

80 Planning Commission Approved: 5-24-10

Budget Committee Approved: 5-18-10

City Council Approved: _

CITY OF ALBANY CIP JOINT WORK SESSION City Hall Council Chambers April 12, 2010 7:00p.m.

MINUTES CALL TO ORDER

Wes Hare called the meeting to order at 7:00 pm.

INTRODUCTION

• Wes Hare gave an introduction

COMMUNITY NEEDS

• Greg Byrne gave an overview ofCommunity Needs section. • Floyd Collins suggested that extending sewer to the Springhill Road should be added to this section. • Dala Rouse commented that Draperville was annexed into the City a long time ago and still does not have water service.

ACCESSffiILITY

• Greg Byrne gave an overview ofAccessibility section and highlighted accomplishments made by the City in the past year.

PARKS

• Ed Hodney gave an overview of the Parks section, and pointed out that all parks projects in the CIP are identified in the 2006 Parks Master Plan. • Ed said that the Sunrise Park project scheduled for FT 20 I0-20 11 is being delayed one year due to lack of funding. • Mike Styler expressed concerns regarding the status of construction of Kinder Park. Ed said that the project is nearing completion and that funds are already budgeted to complete the work. • Floyd Collins suggested that some or all parks projects could be delayed to save money for immediate parks needs. He also suggested that the project descriptions provide more detail on why the improvements are needed. • Dala Rouse suggested that other parks projects be prioritized over the YMCA project. • Floyd Collins asked if the Deerfield Park project included on-site parking. Ed said that it would be included in the project scope. • Ed confirmed that any unspent parks operating funds are placed in a parks contingency fund.

81 PUBLIC FACILITIES

• John Bradner gave an overview ofthe Public Facilities section. • Fire Department is currently looking for a site for a new downtown fire station. They need a 1.25 to 1.50 acre site, located in the downtown area between Hill Street and Washington Street. • Floyd Collins asked how many fire stations will be needed to serve the existing UGB at buildout. John Brander said 5 stations will be needed, but some ofthe existing station locations would need to change or additional stations would be needed. • Greg Byrne suggested incorporating a fire station location into the South Albany Area Plan. • John Bradner provided an update on the Station 12 seismic upgrade project. Design and construction will take 18months to complete. • Bessie Johnson asked how much a fire station and training facility would cost. Bradner said $6 million for a station and $4.5 million for the training facility. • John Bradner gave an update on the police station property acquisition.

REVITALIZATION

• Wes Hare gave an overview ofthe Revitalization (Kate Porsche was not able to attend) • Floyd Collins asked that the amount of private investment be shown in the introductory text. • Stewart Taylor reported that CARAjust secured a $4 million line ofcredit and has drawn $1.5 million for the RCM Homes and Broadalbin Promenade projects.

STORMWATER

• Diane Taniguchi-Dennis gave an overview ofthe stormwater section. • Floyd Collins asked that the introductory text explain that much of the new stormwater requirements are driven by unfunded state and federal mandates.

TRANSPORTATION

• Diane Taniguchi-Dennis gave an overview of the transportation section and highlighted major projects. There is also an increase in the state gasoline tax that will go into effect in January 20 II. • Floyd Collins pointed out that the project for N0I1h Albany Road between Quarry Road and the railroad tracks is missing from the Cll', Staffwill add the project back to the unfunded section. • Floyd Collins said that pedestrian access on Gibson Hill Road was needed, and specifically to Gibson Hill Park.

WASTEWATER

• Diane Taniguchi-Dennis gave an overview of the wastewater section. She explained that the wastewater fund is burdened with debt from the water reclamation facility project and that limited capital money was available. The limited funds available are being used to complete capacity-related projects. • Floyd Collins asked that the City re-evaluate the schedule for replacing old deteriorated sewer pipes. • Bessie Johnson said that the City should stick to the task force plans with regards to maintaining the sewer and water system. • Dala Rouse raised a concern that utility rates not be raised too high to avoid scaring away new investment in the community.

WATER

• Diane Taniguchi-Dennis gave an overview ofthe transportation section and highlighted major projects. • Dala Rouse asked why the water replacement project in her neighborhood was delayed five years. Diane said it was due to lack of available funds due to other priorities (Broadway Transmission Main) and the lack ofwater rate increases. Staffwill evaluate the timing ofthe project in question.

2 82 ADJOURNMENT

There being no other business, the meeting adjourned at 9:30 p.m.

Respectfully submitted by,

Chris Cerklewski, Civil Engineer III

CLC

G.'\.MOI)'ICC JointMeetings\04.12.10.CIP.Coll1/cil.Planning.Budget.min.doc

3 83 Approved: ___ CITY OF ALBANY CITY COUNCIL Council Chambers Wednesday, April 28, 2010 7:15 p.m.

MINUTES

CALL TO ORDER

Mayor Konopa called the meeting to order at 7:15p.m.

PLEDGE OF ALLEGIANCE TO THE FLAG

Konopa led the pledge ofallegiance to the flag.

ROLLCALL

Councilors present: JeffChristman, Ralph Reid, Jr., Dick Olsen, Bill Coburn, and Bessie Johnson Councilors absent: Councilor Collins (excused)

PROCLAMATIONS

Older Americans Month.

Konopa read a proclamation declaring May 2010 Older Americans Month.

National Salvation Army Week.

This proclamation was pulled from the agenda and will be read at a later date.

SCHEDULED BUSINESS

Communication

Receiving a noise variance request from the Oregon Department ofTransportation (ODOn.

Amy Ramsdell, 3700 Philomath Blvd, Corvallis, representing GDOT, explained that they would be working on the highway from Corvallis to Albany. The work would include grinding and the use of heavy equipment. Construction can start anytime in April through October 2011. They would also be installing some guardrails. They chose to submit their requests early in order to have a more flexible schedule.

City Manager Wes Hare asked ifRamsdell could estimate what the decibel levels would be. Ramsdell said she wasn't qualified to give an estimate.

City Attorney Jim Delapoer believes that no permit is required. As he understands the City ordinance regarding noise, it is referring to the building ofa structure only.

The Council directed staffto review the request and return ifany permits are necessary.

Business from the Public

None

Adoption ofConsent Calendar

1) Approval ofMinutes a) March 10,2010, Regular Session. b) April 14,2010, Regular Session.

MOTION: Councilor Johnson moved to adopt the Consent Calendar as presented. Councilor Reid seconded the motion and it passed 5-0.

Appointments

Airport Advisory Commission.

MonON: Reid moved to approve the following appointees to the Airport Advisory Commission: Appointee Tenn Expiration Nominatedby JohnPascone December 31,2010 Mayor Koncpa Ron Terhaar December 31.2010 Councilor Olsen Heath Kasper December 31,2010 Councilor Reid Pat Eastman December 31, 2010 Councilor Johnson Dennis Smith December 31, 2011 Councilor ColHns Jerry Wilken December 31, 2011 Councilor Coburn John Harshberger, Sr. December 31,2011 Councilor Christman 84 Albany City Council Regular Session Minutes Wednesday, April 28, 2010

Councilor Christman seconded the motion and it passed 5~O.

Reports

Receiving Code Enforcement Team Third Quarter Report for Fiscal Year 2009-2010.

Management AssistantIPublic Information Officer Marilyn Smith explained that the way junk citations are issued was changed about a year ago, allowing a faster resolution to many of the issues on the report. She said Community Clean Up day is scheduled for May 15. Staff has targeted a specific neighborhood to have volunteers clean. This year the City is charging the neighborhood a nominal fee of $2.00 per load for using the dumpsters. Smith said the running cost for the team looks impressive but most employee costs are paid from the GeneraI Fund.

There followed Council discussion regarding specific locations on the report.

Councilor Olsen was concerned that other citizens may want to participate in dumping garbage and would not be able to afford the $2.00 charge.

Receiving debt defeasance options report.

Finance Director Stewart Taylor explained that it was important for the Council to become familiar with the defeasance concept. He introduced Jonas Biery. the City's Financial Advisor with Seattle Northwest Securities.

Biery said he would be explaining defeasance options the City has with the callable bond debt it is currently carrying. He provided a PowerPoint presentation to the Council (in agenda file).

Biery said that defeasance is a legal process whereby callable bonds are funded through an escrow account. The payment of the bonds at the call date is no longer the obligation of the City but rather would be the obligation of the escrow agent. Some benefits include interest savings, removal of debt obligations, and improved cash flow. He included four examples, emphasizing the benefits realized from the Series 2002B Pension Obligations (Option 1) and Series 2004 Revenue Obligations (Option 4).

Hare mentioned that when the Council thinks about using the Pepsi dollars, staff wanted to have this information available to consider as an option. Defeasance can provide a very high rate of return, which translates to taxpayer savings.

Christman said one of the examples in the report was paying off the water bonds, with a $500,000 annual savings. He asked, would this reduce citizens' water payments? Public Works Director Diane Taniguchi­ Dennis said it might result in a lesser increase for water rates. But. mostly it would free up funding for water pipe repairs or it could be put into a capital account. If used for capital, it would be a one to one correlation. For every dollar saved there would be a dollar available.

BUSINESS FROM THE COUNCIL

Councilor Coburn asked, when will the Lowes project be coming back to the Council? Hare said it is scheduled for Wednesday, May 12. Hare said that Lowes had asked that the staffmemo go to them for review before going to the Council. Hare told them no, the Council gets it first.

Hare told the Council that there is a Community Video Program that has a website link to private videos promoting the City of Albany. The videos are financed by selling advertising to businesses in Albany. Initially, a few years ago. there was an aggressive marketing campaign to get businesses to advertise on the site by the video company. and his office did receive some complaints. The company has approached the City and proposed to do a newer version of the videos. Although they have done a very professionaljob, if the City were to agree. there is the risk of insulting some businesses in town. After discussion the Council decided to look at the videos and get back to staff.

RECESS TO EXECUTIVE SESSION TO DISCUSS PENDING LITIGATION OR LITIGATION LIKELY TO BE FILED IN ACCORDANCE WITH ORS 192.660 (2) (h)

The Regular Session was recessed into an Executive Session at 8:27 p.m.

RECONVENE

The Regular Session was reconvened at 9:00 p.m.

The Council chose to deliberate in open session regarding the $33.000 in arrears (22 months) ofrent currently owed to the City by Reliant Aviation at the Albany Airport.

2 85 Albany City Council Regular Session Minutes Wednesday, April 28, 2010

Olsen asked, how does a Fixed Base Operator (FBD) make money at the Albany Airport? Hare said by repairing planes, giving rides, etc. Olsen said the City didn't get any other bids to be the FED when they went out to bid in the past. He doesn't want to terminate Reliant's lease, no matter how much they owe, until staff can investigate mote about the circumstances surrounding the debt.

Reid asked, how long do you want the investigation to continue? Olsen said at least a month. Reid said ifthe current FBD wasn't there, maybe Albany would get other bids.

Christman objects to allowing anymore time. He doesn't believe the FBD is in arrears because of the economic times. They haven't been able to pay their rent on a regular basis since 1986. The 1990s were boom times and they still weren't able to pay. The Council needs to look at a bigger picture. What does it take to make someone profitable out there? Is there another way to do this? Talking with Reliant is not going to solve the problem. The Council needs a Work Session with the Airport Advisory Commission to discuss these concerns.

Coburn agreed. He said Reliant owing the money is one issue, the other is the bigger discussion about an FBO.

Airport Manager Chris Bailey said there is no legal requirement to have an FBO. She will bring back to a Work Session the requirements ofhaving a FBO and other options at the Albany Airport.

MAIN MOTION: Christman moved to direct staff to start legal action, including eviction, to collect $33,000 in delinquent rent from the Fixed Base Operator (FBO) at the Albany Airport. Johnson seconded the motion.

AMENDING MOTION: Reid moved to amend the motion to have staff schedule a Work Session wherein the Council would invite the Airport Advisory Commission to participate in discussions concerning the FBO contract. Johnson seconded the motion and it passed 5-0.

Coburn asked if the past rent could be collected without eviction. Delapoer said they could be separate items. He explained the collection process and options the City has.

The Council discussed the eviction process and if it should be included in the motion.

VOTE ON MAIN MOTION: The vote on the main motion failed 3-2, with Olsen and Coburn voting no.

Hare explained that there was no majority vote for the legal action in the motion but if the Council would like to do something about the problem, another motion would be appropriate.

MOTION: Christman moved to have staff start legal action to collect the $33,000 in delinquent rent from the FBO at the Albany Airport. Coburn seconded the motion.

Delapoer explained that the legal action process would involve sending a letter asking the FBO to pay the monies in arrears within a 10 day time period and ifhe wasn't able to do that, the City would go to court.

VOTE ON MOTION: A vote was taken on the motion and it passed 4-1, with Olsen voting no.

Johnson mentioned that she would prefer not to see a new lease for Reliant come back to the Council right now, Delapocr said staffwould not be negotiating a new lease.

MOTION: Christman moved to set a Work Session as soon as possible with the Council and the Airport Advisory Commission. Coburn seconded the motion and it passed 5-0.

NEXTMEETINGDATE

The next City Council Work Session is scheduled for Monday, May to, 20]0, at 4:00 p.m., in the Albany Municipal Court Room, in City Hall. The next Council Regular Session is scheduled for Wednesday, May 12, 2010. at 7:15 p-m., in the City Council Chambers, in City Hall.

ADJOURNMENT

There being no other business, the meeting was adjourned at 9:32 p.m.

Respectfully submitted by, Reviewed by,

Betty Langwell, MMC Stewart Taylor City Clerk Finance Director

3 86 APPROVED: _ CITY OF ALBANY CITY COUNCIL Council Chambers Wednesday, May 12,2010 7:15 p.m.

MINUTES

CALL TO ORDER

Mayor Konopa called the meeting to order at 7:15 p.m.

PLEDGE OF ALLEGIANCE TO THE FLAG

Konopa led the pledge ofallegiance to the flag.

ROLLCALL

Councilors present: JeffChristman, Dick Olsen, Bill Coburn, Bessie Johnson, and Floyd Collins (via phone) Councilors absent: Ralph Reid, Jr. (excused)

Konopa explained how Councilor Collins would participate and asked anyone who would testify during the public hearing to speak clearly into the microphone. She also told the audience that tonight's meeting would not be videotaped as the replacement part for the camera had not arrived.

PROCLAMATIONS

National Salvation Army Week.

Konopa read the proclamation declaring May 10-17, 2010, as National Salvation Army Week.

Public Works Week.

Konopa read the proclamation declaring May 16·22,2010, as Public Works Week.

SCHEDULED BUSINESS

Communication

Accepting the resignation of Jason Desler from the Traffic Safety Commission.

MOTION: Councilor Johnson moved to accept the resignation of Jason Desler from the Traffic Safety Commission and send a letter of thanks for his service. Councilor Coburn seconded the motion and it passed 5·0.

Continued Public Hearing

ST-09-03. Oak Street Local Improvement District (LID).

Konopa reopened the Oak Street LID public hearing that was continued from the March 10, 2010, City Council meeting.

StafIReport

Assistant Public Works Director/City Engineer Mark Shepard explained that there are two proposals from the Lowe's development team. They are a response to the Engineers' Report the Council received on March 10. They are significantly different from the Engineers' Report. The options offered are unusual and those are explained in the staffreport in the agenda packet. Attachments co I" and "2" are spreadsheets comparing LID costs that were offered in the Engineers' Report with the options that I.:owe's is proposing.

Shepard described Attachment "1" (page 11 of the agenda) as the "punch-thru" project and includes the Lowe's frontage on Oak Street. In the Lowe's proposal the costs for the new section ofOak Street between 9th Avenue and Pacific Boulevard would be funded with $2.1 million from the Transportation System Development Charges (TSDC) fund (the maximum allowable by law) and an additional City contribution of $95,500. After the application ofthe TSDC funds and the additional funding, the balance of the costs would be split between the Lowe's team and the Kinder Park property. Full street improvements on Lowe's frontage on Oak Street would be covered by Lowe's under this proposal. Attachment "1" is the comparison of the initial LID funding distribution, including the use of System Development Charges (SDCs), the shaded columns, and Lowe's proposal, the unshaded columns, and shows a total Lowe's contribution of around $710,900.

Shepard explained that Attachment "2" (page 12 of the agenda) is also a comparison and includes proposal "A" with development south to Queen Avenue. In the Lowe's proposal the costs for the improvement of Oak Street between Pacific Boulevard and Queen Avenue would be funded with $3.5 million from the 87 Albany City Council Regular Session Minutes Wednesday, May 12, 2010

TSDC fund with additional City funds of around $83,700. This proposal includes participation of around $227,100 from other east-side Oak Street property owners and Kinder Park in the amount of $306,200. There would be no west-side assessment under this methodology.

Shepard said that the City used a trip methodology and Lowe's is proposing funding by agreement. He added that under "An Lowe's wants to bid and build their Oak Street frontage with their contractor, not under the City's contract to build the punch-thru. It would require extra coordination with the state and City, but he believes it could be done.

Shepard said staffreceived an email from Diane Hunsaker (in agenda file) regarding this issue.

Cobum asked why Lowe's options show higher costs for the "punch-thru?" Shepard said because of a difference in right-of-way acquisition.

Councilor Olsen asked, does the City pay 80% if the Oak Street improvements are from Pacific Boulevard to Queen Avenue? Shepard said the City would be paying the Parks proposed amount. the SDCs, and the additional funding. It ends up being around 81%. The City normally does not pay on an LID except for over sizing and potential SDC contributions.

Councilor Christman asked for verification that just the east side ofOak Street was being assessed. Shepard said yes.

Coburn asked, is this agreement methodology defendable? City Attorney Jim Delapoer said that staff understood that all the property owners, except one, were agreeable to this methodology. It could be problematic if the City gets challenged. It is very unusual to do an LID by stipulation.

Testimony

Ed Schultz, PO Box 667, Albany. representing Lowe's, said everyone has an opinion about this project. He is going to describe how they reached these two proposals. He provided overheads (in the agenda file) for the Council as follows:

A. Two decisions to be made: Is the Council going to form one LID or more? How is a LID to be funded? B. The private sector proposes two.alternative solutions: 1. Form one LID for the project to extend Oak from 9lh Street to Pacific Blvd. a. Fund LID by agreement b. Lowe's completes reconstruction of both sides of Oak Street not included in LID, to north line of City Park c. Funding agreement 1. City Street SDCs, $2,130,000.00 2. Lowe's Property Group., $266,884.00 3. Other City Funds, $221,116.00 Total, $2,618,000 d. City eslimate ofLowe's cost to reconstruct all of Oak Street, $440,000.00 e. Total street contribution by Lowe's Group, $710,884.00 f. Additional SDC fees to be paid by Lowe's: 1. Traffic SDC, $472,776.00 2. Utilities SDC, $206,131.00 3. Site development, building, and other fees, $104,384.00 Total ofSDC and other fees to be paid by Lowe's, $783.291.00

Schultz said the only coordination with the City's contractor would be during the punch-thru. This option has 110 assessments against residential property owners. There would be less risk of an appeal.

Johnson asked if the punch-thru was a City requirement or an Oregon Department of Transportation (ODOT) requirement. City Manager Wes Hare said when the City evaluated the original proposal. the project proposal created a traffic weaving safety hazard in the area. ODOT agreed. The punch-thru was a better alternative than the Sherman Street proposal. Lowe's is not entirely responsible for the problem.

Schultz said it is not a standard development project. There are a variety of things involved. They tried to reach a financial decision that everyone could accept. He mentioned that Lowe's will be paying for other fees as well.

Schultz continued his presentation with: 2. Form two LIDs for the project from Queen Avenue to Pacific Boulevard a. Form the north LID from Pacific Boulevard to 9lh Street b. Fund by agreement 1. City Street SDCs, $2,130,000.00 2. Lowe's property group. $434,258.00 3. Other City funds, $53,742.00 Total, $2,618,000.00

2 88 Albany City Council Regular Session Minutes Wednesday, May 12,2010

This portion would be an agreement framed LID for the punch-thru. c. Fonn the south LID, glh Street to Queen Avenue d. Fund by assessment - the average of front footage and area; east side of Oak Street omitted 1. City Street SDCs, $1,417,000.00 2. Lowe's property group, $229,773.00 3. City Park, $306,184.00 4. Church, (originally $47,663.00) $15,887.00 5. Glaser, $28,119.00 6. Sadri/Grazul, $151,261.00 7. Lowe's Property Group,$31,776.00(a portion of the Church's) Tolal, $2,180,000.00 Under this method, the Church of Christ's assessment would be the only one to increase from the original. Because the Church has said they do not have financial resources to afford this, Lowe's agreed to pay 2/3 of their assessments by charitable contribution, ifthe costs should becomefixed.

Schultz said the trip methodology was so significantly unequal that it wasn't acceptable. Their assessment is based 011 available sums, including the maximum use of the SDCs, and an average combination of frontage assessment and area assessment. This proposal is also based on assuming that the City should pay a portion of the project and the rest of the costs be based on a proportionate share.

Coburn asked, would the PerJenfeins bear the costs of tearing down the building for the punch-thm? Schultz yes, and they have gotten cost estimates for property, relocation, and rebuilding.

Christman asked, are the Pings giving the property for the road expansion to the City? Schultz said yes.

Christman asked, for the assessment methodologythat is being proposed by Lowe's, must the City defend it and hold Lowe's harmless? Delapoer said if the Council elects to go all the way to Queen Avenue under Lowe's proposed plan, and some properties challenge the assessments, it would probably go to court. If the property owners are successful the City would have an option to reassess the costs as directed by the court. But, yes the City would have to defend it. Delapoer explained about higher or lower costs or jf the court orders a change.

Coburn asked if Lowe's had a preference of the two plans. Schultz said he believes they would prefer the first option. It gives the parties of the transaction a degree of certainty.

Olsen asked, is there no way to remonstrate against this project? Delapoer said yes, property owners can but legal appeals are taken up at the end of the project.

Delapoer said the only decision the Council will make tonight that is final, is whether to build a road at not to build a road. The decision as to whether the cost of the road is to be assessed to private property owners is only a tentative decision tonight as well as the methodologythat will be used. Those decisions will not be final until the project is completed, the total project costs are known, and the neighborhood has had a chance to voice their opinion at a public meeting. Delapoer explained the remonstrance process for the audience.

Delapoer asked if Lowes is being assessed with these options. If they are, then it will satisfy the land lise approval for the LID. Shepard said that Lowe's is offering to pay an assessment on the punch-thru portion, but the improvement along their frontage is envisioned as outside the LID as a private improvement.': Delapoer said to satisfy the land use approval requirements, it's important that within the single LID that gets approved, it includes that the punch-thru and the other requirements are being paid for through the LID mechanism.

Coburn said his first concern was Lowe's contribution and then they mentioned SDC contributions. He is confused. Schultz directed Coburn to the graph in the staff report and the SDC contribution amounts there. Coburn asked, in addition to the $710,000 what would Lowe's be paying in SDCs? Shepard said they would have water, sewer, and transportation SDCs. Additional fees would be around $782,291.

Christman asked if the property owners on south Oak Street on the east side were upset that the west side wasn't being a party to this agreement. Schultz has letters to provide regarding contacts. He said hundreds of hours have been involved in getting input from them; not all of which has been successful. But if the City wants to build a street, the Council needs to either absorb the full costs or form an LID. Schultz said if they can find a way for the project go forward, the street will be built.

Collins asked if option 1 or 2 modifies the boundary. Delapoer said yes, both modify the boundary. He also mentioned that everyone's proposed costs have gone down.

Schultz provided copies of letters he sent regarding their proposed LID to Asghar R. Sadri & Dorothy Grazul, the Pastor at the 9!b and Oak Church of Christ, and Dennis Glaser (in agenda file). They are the three property owners on the east side of Oak Street.

Jack Mandel, Senior Site Development Manager, Lowes Western Real Estate Office, 1530 Faraday Avenue, Suite 140, Carlsbad, California, read a letter (in the agenda file) to the Council. He said that staff took their

3 89 AlbanyCity CouncilRegular SessionMinutes Wednesday, May 12,2010

first draft of a LID proposal and prepared a final report from it. As a result, the Council has a report that contains misunderstandings and factual errors that need to be rectified. He said that in March 2008 they initiallybegan considerationof the site. In May 2008 they received authorizationfrom Lowe's management to proceed with-the Albany project. They then started what was expected to be a six month process. Since then they have spent the past two years processing "entitlements for this project" and managing their budget and have yet to have a land closing or start ofconstruction. He said the staffreport includes, in a reference to Oak Street, a statement that says, "If Council wants to accommodate the Lowe's development requirements and make the improvements ODOT demands in order for that development to occur... " Mandel said, to set the record straight, the Oak Street punch-thru was neither a demand of Lowe's or ODOT. it was the City that opted for that plan to solve a greater City problem. It is an improvement that corrects current safety conditions that exist on the Highway-99 couplet. He believes there were other much simpler and less costly solutions to meet the needs of the Lowe's project, including the Sherman Street improvement. He said the punch-thru is what the City wanted.

Coburn commented that the punch-thru traffic improvement probably would not be there except for the increase oftraffic because ofLowe's coming to that area. Mandel said he thinks the weaving problem was overblown. He thinks the City traffic would function fine without it. Coburn said he objected to Mandel minimizing the responsibilities ofthe store in terms of improvements to the street. The Council's job is to do what is best for the community, not what is best for Lowe's.

Mandel said another traffic mitigation measure required of the project is the improvement of the Oak Street frontage ofthe Lowe's site. Initially it was only to be a half-street improvement ofOak Street in front ofthe Lowe's project. Today. Lowe's plans on providing a full-street improvement of Oak Street in front of the project. In the City's staff report dated May 5, it states "However, the Lowe's development team has said that a single project managed by the City does not meet their requirements."- He said Lowe's has never stated that a single project managed by the City doesn't meet their requirements, in fact it is their preference.

Another item Mandel feels there is a need to clarify is the Oak Street south improvements. Their traffic study concluded that no improvements south of Lowe's on Oak Street were necessary as only I0% of the total trips will use that section of road. This again is another project the City wants in order to meet a greater City need. They don't object to these improvements but don't believe they should pay for any part of them as they are paying for the frontage improvements. However. in order to get the project moving, Lowe's has agreed to contribute financially to the Oak Street south improvements if the City chooses to improve Oak Street to Queen Avenue.

Mandel said that included in the staffreport is an explanation ofthe history of Albany requiring a developer to make or fund any necessary improvements for utilities. including improved 'streets. He wanted to say again that Lowe's position is that they developed with the City traffic mitigation measures prior to the redesign and inclusion of the "punch-thru'', which was not a design requirement ofLowe's but of the City. He listed the Oak Street improvements that Lowe's is paying for and said that in addition they are paying $320,000 in other infrastructure impact fees and City permits. He feels they are going beyond what they 'originally agreed to. He said they are not asking for special treatment.

Christman said he understood that two years ago the mitigation that would take place would be regarding Sherman Street. The Council decided not to use that plan because it would have an impact on the site. From there, the idea formed to make a street change decision that would be the best for the area. The Council has already approved Lowe's coming to.the community. He objects to the implication that the City is trying to off-load their traffic: issue on to Lowe's. That is not the intent of staff or the Council. The Council is trying to create a good traffic situation for that area. The question is who is going to pay fOT the traffic issue.

Mandel said the improvements are good and they are committed to Albany, but do not want to pay the lion's share ofthe improvements.

Olsen doesn't believe 20% is the lions share.

Shepard was concerned that the Council was revisiting a land use issue that has been resolved. Lowe's has already agreed to pay for the punch-thru and the frontage. The question for this public hearing is how much Lowe's should participate in the LID.

Coburn feels he is getting two conflicting stories. Did Lowe's agree to pay for the punch-thru?

Mandel explained that they had several options on the table including the Sherman Street option, but went with the puuch-thru option because that is what the City wanted and it became a condition of approval. He thinks they have a workable proposal.

Delapoer reminded the Council that the land use approval says that Lowe's will fund the whole thing, unless they participate in a LID.

Transportation System Analyst Ron Irish said that at the pre-application meeting stafftold Lowe's what they anticipated they would need when submitting an application. Lowe's was told they would need a traffic

4 90 Albany City Council Regular Session Minutes Wednesday,May 12,2010

study, they would have to do at least partial street improvements along Oak Street, and they would have to deal with ODOT for access to 9th Street. Staff also suggested that there was a need for a punch-thru and described what that would entail, and pointed out that the City had an accident problem at the couplet specifically due to weaving. After the pre-app, they had a meeting with ODor as to what the traffic study should look at. ODor suggested that the analysis look at a punch-thru. The developer was reluctant to look at it at that point. After two full traffic studies and several appendices, one of them was the Sherman Street option. That was brought to a Council meeting. The owners of the property along Sherman didn't like it; they thought it impacted their businesses including the concerns of a gas station business's trucks existing onto Pacific Boulevard and locking up traffic that resulted in the Police being called to direct traffic. The Council agreed with them and the Sherman Street option was rejected. Lowe's revised their traffic study to look at the punch-fhru. The punch-thru ended up being the only mitigation suggested that would deal with the weaving issues, and the traffic volume surrounding the intersections at the project. Staff always knew it was a larger and more costly project than Lowe's would be able to deal with just a land use decision. At that point staffwas also developing a new Systems Transportation Plan that they thought may provide some SDC funding. In order to get the land use approval, the punch-thru had to become a condition of the development.

Hare was concerned that the hearing was getting caught up in the history ofthe project and not getting to the basis for a decision. There has been consistent recommendation to approve the punch-thru as proposed.

Collins said the punch-thru is necessary no matter who is there. They need to get beyond the history, as Hare has mentioned.

Johnson agreed and asked Delapoer if the Council can make a decision to go ahead with the LID but not actually make a decision on the specifics tonight. Delapoer said no, decisions must be made. His prior response was only about appeal rights. The concern tonight is extending the improvements to Queen Avenue, committing SDC funds, and which LID funding methodology to use.

Matthew Conser, 1010 Airport Road, provided a prepared statement (in agenda file) saying that the costs to the property owners have come down from the original methodology. He doesn't believe anyone will appeal if the Council accepts the proposal. This project could become a reality by concentrating City funds on the improvements of Oak Street. SDCs are available to contribute funding to this project. He believes there are advantages to completing the project. He mentioned that Lowe's would generate around $300,000 in property taxes, 41% of which would go directly to the Central Albany Revitalization Agency (CARA). $300,000 a year in estimated tax revenue equates to a 10 year payback for all the City funds invested today. The Council has three decisions: The first is, should they improve all of Oak Street or just the northern section; and ifonly the northern, will it be one LID; and ifall ofOak Street, will it be two LIDS: The second decision is accepting the assessment methodology proposed. And the third decision is how soon to get started.

Kent Wilson, 930 Hill Street, owner ofltAt Home Furniture" store, encouraged the Council to move forward and said he welcomes Lowe's in the community even though they are his competition.

10 Rae Perkins, 1033 Maple Street, believes the City should pay for the improvements on Oak Street.

George Heilig, PO Box 456, Corvallis, representing Pings Restaurant, said that the design of-the road is important to them. They would like it to have a minimal impact on Ping's parking lot and not lose access off of9th Street to the parking lot.

Michael Robinson, 1120 Couch Street, lOlh Floor, Portland, representing Lowe's, thinks there is a solution here. He thinks the punch-thru LID is a good one and that the second option is a risk worth taking. He said there is a $60,000 difference between the City's proposed methodology and Lowe's methodology.

Mike Styler, 1320 Oak Street, said he has heard people say that it is not necessary to complete the improvements on the south end of Oak Street. He disagrees. He believes there are safety and traffic issues on Oak Street for both children and adults that improvements would address. He said there is a need to complete Oak Street.

There being no other testimony, the public hearing was closed at 9:53 p.m.

The meeting was recessed for a briefbreak at 9:54 p.m.

Reconvene

The meeting was reconvened at 10:00 p.m.

Collins wanted to take a "straw vote" on support for Option 1 or Option 2.

5 91 Albany City Council Regular Session Minutes Wednesday, May 12,2010

Christman said he has always been in favor affixing Oak Street all the way to Queen Avenue. Ifhe were going to Lowe's from his house the route he would take would be to come up Oak Street. With minor modifications, he would accept Lowe's Option 2 proposal.

Olsen said that before the couplet project he used Oak Street regularly and agrees with Christman that people from the south east will take Oak Street rather than 9th Avenue. He believes Oak Street needs to be improved and is in favor of Option 2.

Johnson said she is not in favor ofdoing the trip methodology. She too is in favor ofOption 2.

Coburn also is in favor of improving Oak Street all the way to Queen Avenue.

Collins agreed but also mentioned that the project will take a greater component of City resources and the loss to other projects will have an impact.

Christman was concerned that there were property owners that were left out of the option that would benefit from the improvement and the east side property owners would have to pay. He suggested that the City somehow come up with funds for those property owners, the three on the eastside (Glasser. Sadri/Grazul, and Ninth & Oak Church of Christ), that would require them to be part of the project, but not to be part of the financial costs.

Collins asked, would there be a connection fee later if those properties got developed? Shepard said yes.

Collins asked if there was some way to have Lowe's continue to pay the dollar amount they offered to pay for the Church. Delapoer said the Council can include a condition that Lowe's continue to pay what they offered to pay on behalfof the Church.

Johnson asked if there was any history ofbenefitted property within a LID that didn't have to pay. Shepard doesn't believe it has ever happened. She said she is worried about setting a precedent.

Olsen said that after considering the use of SDCs, he wondered what it would take to have the whole City pay for this project. He considered the process of going out for a bond. With that in mind. he has calculated that it would be around $320 more a year in taxes, perhousehold, for this project. He thinks it is too much money for the City to spend in order to have another retailer in town.

Coburn said he prefers to look at the project as an investment that would pay itselfback. Lowe's would pay taxes. They would employee around 300 people who would pay taxes and spend money on other businesses.

Olsen commented all the other hardware stores in town. He thinks some will gain and some will lose.

Johnson said that Lowe's handles different products. She believes the competition would be good for the consumer.

Konopa said picking up the costs of the LID from the property owners would be setting a precedent. The Council may have to defend this decision when other LID projects come forward.

Collins said one defense is the recently completed Transportation Plan; money was allocated to that.

Irish said the maximum amount eligible is 65% to this project.

MOTION: Coburn moved to adopt Option 2 (Oak Street from Pacific Boulevard to Queen Avenue. Option "B" in the staff report) using Lowe's methodology, with the two residential properties and the Church property excluded, and the amount that Lowe's had agreed to pay for the Church ($31,776) to be paid by Lowes. Johnson seconded the motion. .

There followed a discussion of several financing packages and where the revenues should come from to support the project, but no decision was made.

Olsen said he will vote no on the motion because he believes $6,000.000 is too much for this project.

VOTE: A vote was taken on the motion and it passed 4·1, with Olsen voting no.

Business from the Public

No aile wished to speak.

Adoption of Consent Calendar

1) Approval of Minutes a) April 26. 2010, Work Session. 6 92 Albany City Council Regular Session Minutes Wednesday, May 12, 2010

2) Annual liquor license renewals.

MOTION: Coburn moved to adopt the Consent Calendar as presented. Johnson seconded the motion and it passed 5~O.

Appointment

Appointing David Smith to the Traffic Safety Commission.

MOTION: Coburn moved to appoint David Smith to the Traffic Safety Commission. Johnson seconded the motion and it passed 5-0.

Report

Government Financial Officers Association CGFOA) Award for Comprehensive Annual Financial Report ICAFR1.

Senior Accountant Mike Murzynsky was recognized for being awarded the Government Financial Officers Association Award for the CAFR. Albany has received this award every year for the last 25 years.

Hare commented that obtaining the GFOA's CAFR and Budget awards are a benchmark in the City's Strategic Plan. They reflect Albany's high standard ofwork.

BUSINESS FROM THE COUNCIL

Johnson mentioned last Friday's Upstairs Downtown event, saying that it was well attended and a lot offun.

RECESS TO EXECUTIVE SESSION TO DISCUSS LABOR NEGOTIAnONS IN ACCORDANCE WITH ORS 192.660 (2)(d)

The Regular Session was recessed into an Executive Session at 10:45 p.m.

RECONVENE

The Regular Session was reconvened at 11:13 p.m.

NEXT MEETING DATE

The next City Council Work Session is scheduled for Monday, May 24, 2010, at 4:00 p.m., in the Municipal Court Room, at City Hall. The next City Council Regular Session is scheduled for Wednesday, May 26, 2010. at 7: 15 p.m., in the City Council Chambers. at City Hall.

ADJOURNMENT

There being no other business, the meeting was adjourned at 11:14 p.m.

Respectfully submitted by, Reviewed by,

Betty Langwell, MMC Stewart Taylor City Clerk Finance Director

7 93 ~ ~'ftA TO: Albany City Council VIA: Wes Hare, City Manager

FROM: John R. Bradner, Fire Chief cJ--tc..6

DATE: May 25, 2010, for the June 9, 20 10, City Council Meeting

SUBJECT: Acceptance ofFire Station 12 Seismic Rehabilitation Grant

RELATES TO STRATEGIC PLAN THEME:. A Safe City

Action Requested:

Approval by resolution for the Fire Department to accept the Oregon Seismic Rehabilitation Grant from Oregon Emergency Management to rehabilitate Fire Station 12 to meet seismic standards as an emergency services facility.

Discussion:

On October 14, 2009, by Resolution No. 5851, City Council approved application for the Oregon Emergency Management Seismic Rehabilitation Grant for Fire Station 12.

The City has received notification from Oregon Emergency Management that we will be awarded $280,023 for rehabilitation of Fire Station 12, 120 34th Avenue SE. Funding from the grant will not be available until fiscal year 20 I0-11.

Budget Impact:

Fiscal Year 2010-11: $280,023 Grant Funding $100,000 City Facilities Replacement Budget

JB:ljh Attachment

94 RESOLUTION NO. _

A RESOLUTION AUTHORIZING THE FIRE DEPARTMENT TO ACCEPT $280,023 FROM THE OREGON EMERGENCY MANAGEMENT SEISMIC REHABILIATION GRANT PROGRAM

WHEREAS, the Albany City Council approved applying for the Oregon Emergency Management Seismic Rehabilitation Grant for Fire Station 12 with Resolution No. 5851 at the October 14, 2009, City Council meeting; and

WHEREAS, the Fire Department snbmitted an application for the Oregon Seismic Rehabilitation Grant in the amonnt of$280,023 for the seismic rehabilitation ofFire Station 12, 120 34th Avenue SE; and

WHEREAS, the City of Albany has received notification from Oregon Emergency Management that it will be awarded $280,023 in Fiscal Year 2010-2011 through the Oregon Seismic Rehabilitation Grant; and

WHEREAS, the City Council approval for allocation of the grant funds will be requested through the 2010-2011 budget process.

NOW, THEREFORE, BE IT RESOLVED the Albany City Council authorizes the Fire Department to accept the Oregon Emergency Management Seismic Rehabilitation Grant.

DATED AND EFFECTN~ THIS 9TH DAY OF JUNE 2010.

ATTEST: Mayor

City Clerk

w:\Fire\Admin\Lorri\Grants\2009 OEM Seismic Rehabilitation Grant\ST 12 Seismic Rehab Grant Accept Resolution.docx Page 1of! 95 TO: Albany City Council

VIA: Wes Hare, City Manager c..' A~/

FROM: Ed Gallagher, Library Diref(l<1

DATE: June 2, 20 I0, for the June 9, 2010, City Council Meeting

SUBJECT: Bill and Melinda Gates Foundation Grant

RELATES TO STRATEGIC PLAN THEME:. Effective Government

RELATES TO: • Great Neighborhoods

Action Reguestcd:

Adopt the Resolution accepting the Bill and Melinda Gates Foundation Opportunity Online Hardware Grant.

Discussion:

This is the second time the Library has partnered with the Gates Foundation, and each time we have been able to add four new computers at both Libraries. This year's Grant is especially timely in supplementing a large increase in the number of computers available to the public.

Budget ImQact:

The required $10,400 in matching funds has been expended from Equipment Replacement (217-10-1010-61028 Minor Equipment.)

EG:kg Attachment

G:'AJJMINEdG'CC Memos, clc'Ga/e,(jmIl/201O.Rej'.nug.dm""r

96 RESOLUTION NO. _

A RESOLUTION APPROPRIATING A SPECIAL PURPOSE GRANT FROM THE BILL AND MELINDA GATES FOUNDATlON

WHEREAS, Oregon Local Budget Law provides that expenditures in the year of receipt of grants, gifts, bequests or devices transferred to the local government in trust for a specific purpose may be madc after enactment of a resolution or ordinance authorizing the expenditure (ORS 294.326(3»; and

WHEREAS, the Albany Public Library plays a critical role in providing Internet access and resources for those who cannot afford them; and

WHEREAS, to meet increasing demand for access to technology, the Albany Public Library applied for and received a Gates Foundation Opportunity Online Hardware Grant.

NOW THEREFORE, BE IT RESOLVED that the Albany City Council hereby adopts by resolution thc authorization to accept the Bill and Melinda Gates Foundation grant in the amount of $10,400, which is hereby appropriated as follows:

Resource: Capital Replacement (217-10-1010-42831) $10,400

Requirement: Equipment Replacement (217-10-10 I0-61028) $10,400

ATTEST: Mayor

City Clerk

G;IADMINll.:dGICC Memos. etcIGatesGranrResollltiol1.2()IO.doc Page 1 of 1 97 t! • S'"'' TO: Albany City Council Aran mE,.., VIA: Stewart Taylor, Finance Directorf

FROM: Linda Booth, Parks & Recreation Clerk III

DATE: June 2, 2010, for the June 9, 2010 City Council Meeting

SUBJECT: Annual Liquor License Renewals

RELATES TO STRATEGIC PLAN THEME:. A Safe City

Action Requested:

Council approval for these annual liquor license renewals

Discussion:

Following is a list of businesses that have submitted an application for liquor license renewal. These businesses have paid their fees.

BIG KMART#3209 3100 PACIFIC BLVD SE CASCADE GRILL & BAR 110 OPAL CTNE CLEMENZA'S ITALIAN AMERICAN CAFE 236 SW 1ST COSTCO WHOLESALE #682 3130 KILLDEER AVE SE EAGLES LODGE #2255 127 N BROADALBIN ST ELMER'S BREAKFAST LUNCH DINNER 2802 SANTIAM HWY FAVORITE MISTAKE 5420 PACIFIC BLVD SE FIRST BURGER 210W 1ST AVE GPSMARKET 1655 QUEEN AVE SW mCKORY PIT BARBECUE 2200 SE PACIFIC BLVD HOUSE OF NOODLE LLC 2025 SANTIAM HWY SE JAVA NETWORK 5444 PACIFIC BLVD LAKE SHORE LANES 5432 PACIFIC BLVD SW LINN BENTON CC CONFERENCE SERVICES 6500 PACIFIC BLVD SW LOS DOS AMIGOS HACIENDA 2133 SANTIAM HWY SE MEXICO LINDO II 637 mCKORY ST #130 RAY'S FOOD PLACE #70 621 mCKORY STNW ROSIES FAMILY MEXICAN RESTAURANT 1727IDLL ST SAM CITY 2180 PACIFIC BLVD SE SYBARIS 442 SWFIRST SZABO'S STEAK AND SEAFOOD 222 SW WASIDNGTON ST TARGET STORE T-0609 225514THAVESE TOM TOM DELI & MARKET 321 AIRPORT RD SE US MARKET #170 2211 WAVERLY DR SE #7

Budget Impact:

Revenue of$840

Ib

98 TO: Albany City Council VIA: Wes Hare, City Manager J.-. ./_ • Diane Taniguchi-Dennis, P.E., Public Works Director '" ~~ FROM: Mark W. Shepard, P.E., City Engineer \~vJ

SUBJECT: Award ofBid for WL-IO-02, Columbus and Bradley Streets Water Line RELATES TO STRATEGIC PLAN THEME: A Safe City

Action Requested: Staff requests that Council award this contract in the amount of $193,938 to the low bidder, Alpine Consrruction, ofNewberg, Oregon.

Discussion: On Tuesday, May 4, 2010, bids were opened for WL-I 0-02, Columbus aud Bradley Streets Area Water Line. There were eight bids submitted for this project, ranging from $193,938 to $258,172. The Engineer's estimate was $193,170. A bid summary is attached as Attachment I.

Project Description This project includes construction ofapproximately 950 linear feet of 12-inch and 750 linear feet of 8-inch ductile iron water line. The construction of the new water lines will replace existing two-inch, and four-inch water lines that frequently require maintenance to repair leaks. In addition to the new water line construction, this project will include construction of new water services and fire hydrants. These new water mains will significantly improve the available fire flows in the project area. Attachment 2 is a project vicinity map.

Summary ofTotal Estimated Project Costs Based on the project bid and anticipated related costs, a summary of the total estimated project cost is shown in the table below. The amounts have been rounded to the nearest $100.

Project Components Estimated Cost I. Costs a. Engineering $ 8,000 b. Construction Management $ 10,000 Engineering Subtotal $ 18,000 II. Construction Costs a. Construction Contract $ 193,900 b. Contingency (10%) $ 9,400 c. Other Construction Costs $ 6,000

Construction Subtotal $ 209.300 Total Estimated Project Cost $ 227,300 Protect Budsret $ 256,000 Under/tirver) Project Budget $ 28,700

Budget Impact: This project will be funded from Water Bond Fund (615-50-2302).

SLB:plj Attachments (2)

G:IEngineerl/Valerl/VL-IO-02 COLUMBUS1MC Award. /VL-IO-02.dacot 99 ATTACHMENT 1 ~ CITY OF ALBANY, OREGON ~~ Public Works Department

~@j Construction Contract Bids

Project: WL-10-02, Columbus and Bradley Streets Water Line Bid Opening: May 4, 2010

Tundra Services Engineer's Pacific Excavation, Halme Excavating, North Santiam Gelco dbaj\lpine Estimate Inc. Inc. Paving Co. Construction Co. Construction $193,170.00 $193,938.00 $197,860.00 $201,758.75 $209,840.00 $219,995.00

Wild ish Bill Booker OBEC Construction Co. Construction $232,055.00 $243,467.50 $258,171.61

~ o o Attachment J- «(NUMBER» I. Ui c-, eIV ~-.-- 4 t h u5 Ave.J'-----_--'- - - c ~~-1 E :; u,

/

I-~~--.-- South Shorf Dr . -----

I. Ui o OJ ~ E ~ U I

"5 E Q) s:'" U

_ 14th AVe.--- .J . Ui------1 c ----- ,4th o ~~

:2> ,!'( \ WL -10-02, COLUMBUS AND BRADLEY STREETS WATER LINE- ATTACHMENT 1

City of Albany . 333 Broadalbin 5 1.SW, Alba ny, Oregoo 9732 1 (541) 9 17-7676 101 TO: Albany City Council

VIA: Wes Hare, City Manager Diane Taniguchi-Dennis, P.E., Public Works Director

FRO M: Ma rk W. Shepard, P.E., City Engineer ""wS Chris Cerklewski, Civil Engineer III CL-C-

DATE: June 1,20I0, for the June 9, 20 I0, City Council Meeting

SUBJECT: Award of Bid for ST-II -03, Liberty Street Rehabilitation

RELATES TO STRATEGIC PLAN TH EME:• Great Neighborhoods

Act ion Requested:

Staff requests that Counci l award this contract in the amonnt of $238,765.00 to the low bidder, North Santiam Paving Compa ny ofStayto n, Oregon.

Discussion:

On Tuesday, May 25, 2010, bids were opened for ST-I 1-03, Liberty Street Rehabilitation. There were six bids submitted for this project, ranging from $23 8,765 .00 to $286,500.00. The Engineer's estimate was $240,000. A bid summary is attached as Attachment I.

Project Description This project will rehabilitate the pavement on Liberty Street between 241h Avenue and Lakewood Drive. The existing deteriorated pavement and crushed aggregate base will be rehabilitated and capped with a two-inch asphalt overlay. Curb ramps will also be replaced as part of this project. A project vicinity map is provided as Attachment 2.

Summary ofTotal Estimated Project Costs

Based on the project bid and anticipated related costs, a sum mary of the total estimated project cost is shown in the tab le below. The amo unts have been rounded to the nearest $100.

Project Components Es timated Cost I. Costs a. Enaineerina $2,500 b. Construction Management $1,500 Engineering Subtotal $3,000 n. Construction Costs a. Construction Contract $238,800 b. Contineencv ( 10%) $23,900 Construction Subtotal $262,700 Total Estimated Proiect Cost $265 ,700 Project Budget $275,000 Under/tOver) Proiect Budget $9,300

me award • ST-I J-fJ3

102 Albany City Council Page 2 May 25, 2010, for the [Date], City Council (Meeting or Work Session]

Budget Impact:

This project will be funded from the Street Maintenance Fund (250-50-2602).

CLC:prj Attachments (2)

me award~ST~11-03

103 ATTACHMENT 1

CITY OF ALBANY, OREGON ~~~~ Public Works Department vAl/jiih• ., _... /Jd. ~ Construction Contract Bids

Project: ST-I 1-03, Liberty Street Rehabilitation Bid Opening: Tuesday, May 25,2010

Mnrfh Engineer's ... ~... Knife River Kerr CPM Roy Houck Wildish Estimate Contractors Development Construction Construction

$240,000.00 $247,832.50 $248,689.00 $249,700.50 $274,927.25 $286,500.00

~ C) ..;:::.. Attachment 1-ST-II-03 I ~-~-- - -I I I\

I I ) I f / ! ..j j ! #: ~

sI I I i I / ~ I \ ...... r-__ ,,_, I \- '",j -----~~, i~- ) \ \ / I

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ill Q) r~ CIl $--- i ..c I'--IOJ

ve.

ATTACHMENT....2: LIBERTY STREET REHABILITATION o 250 500 1,000 1,500 TO: Albany City Council

~~~tk VIA: Wes Hare, City Manager ~'L-(..k~ v4lJjdnii• Diane Taniguchi -Dennis, P.E., Public Works Director • . '@.~. FROM: Mark W. Shepard, P.E., City Engineer ~~~ Guy Mayes, Special Projects Coordinator ~

DATE: May 26, 2010, for the June 9, 2010, City Council Meeting

SUBJECT: Award ofBid for AR-IO-02, Airport Runway Rehabilitation

RELATES TO STRATEGIC PLAN THEME: Great Neighborhood

Action Requested: Staff requests that Council award this contract in the amount of$1,262,539.50 to the low bidder, Wildish Construction Company of Eugene contingent upon federal grant award.

Discussion: On Tuesday, May II, 20 I0, bids were opened for AR-IO-02, Airport Runway Rehabilitation. There were six bids submitted for this project, ranging from $1,262,539.50 to $1,567,726.95. The Engineer's estimate was $1,560,556. A bid summary is attached .

This project is 95 percent funded by a Federal Aviation Administration (FAA) grant. Federal FAA funding for the entire year has been delayed by lack of Congressional action, therefore, grants are being allocated as funds become available. The project was designed and bid on a schedule requested by the FAA to enable the City to immediately award a construction contract upon notice of grant award. Actual timing of the anticipated grant award will determine whether construction begins this summer or is delayed until next year.

The project will provide a pavement overlay of the runway and construct blast pads (paved surface) at the ends ofthe runway.

Project Components Estimated Cost I. Costs a. Desizn & Insoection $256,000 b. Administration $50,000 Eneineerin e Subtotal $306,000 II. Constr uction Cost s a. Low Bid $1,262,540 b. Contingencv $127,460 Construction Subtotal $1,390,000 Total Estimated Proiect C OSI $1,696,000 Proiect Budeet $1,696,000 Under/ttrver) Project Budget 0

Budget Impact: The required City matching funds of $84,800 are included in the City's 2010-20 II Budget (203­ 50-5003) FAA Annual Capital Grant.

GM:kw Attachment G:'Engineer'Jransportation'AtrponvtR-J0-02\MC Award.AR-J0-02.docx 106 ATTACHMENT 1

CITY OF ALBANY, OREGON !C~~ Public Works Department L711fj(ih• 0 • . oM... 1Y. J Construction Contract Bids

Project: AR-IO-02, Airport Runway Rehabilitation Bid Opening: Tuesday, May 11,2010

Engineer's K&E North Santiam Kerr Eugene Sand Knife River Estimate :-:-'<'--- Excavatina Paving Contractors Construction

$1,560,556.00

~ o -.j G:\Engineer\Transportation\AirportIAR-i0-021MC Award.AR-J0-02.docx TO: Albany City Council

VIA: Wes Hare, City Manager v4/JJ(ihij• Diane Taniguchi-Dennis, P.E., Public Works Director '7 FROM: JeffBabbitt, Senior Accouutant

DATE: Juue 3, 20 I0, for the June 9, 20 I0, City Council Meeting

SUBJECT: Set Public Hearing for Water and Sewer Rate Adjustments

RELATES TO STRATEGIC PLAN THEME:. Safe City

Action Requested: Staff recommends that Council schedule a public hearing at the regular Council meeting on June 23, 2010, to receive public testimony on proposed adjustments to water and sewer rates.

Discussion: The public hearing proposed to be held on June 23, 2010, regarding water and sewer rates will consider the adoption oftwo resolutions: I. The first resolution is an additional one-year forbearance of a water rate increase effective January I, 20 II, through December 31, 20 II. 2. The second resolution is to enact a seven (7) percent increase in sewer rates to be effective on July 1,2010. Currently the Sewer Fund has a 0.85 debt service coverage ratio. The covenants ofthe Oregon Department ofEnvironmental Quality Clean Water State Revolving Fund loan require the City to maintain a 1.05 debt service coverage ratio. The City of Albany is contractually obligated to raise sewer rates to meet this minimum debt service coverage requirement.

Financially Snstainable Water and Sewer Utilities Our challenge over the next 20 years with the water and sewer utilities is finding the right financial balance for the community. On one side of the balance, we want to keep our water and sewer utility rates affordable and competitive. On the other side ofthe balance, we want to ensure there is adequate capital to meet our debt obligations to upgrade and expand our existing facilities, to provide for sustainable operations and maintenance so that we are not deferring needed repairs and preventative maintenance, and to provide for pay-as-you-go (PAUG) perpetual life maintenance programs to rehabilitate and replace the aged and obsolete facilities.

Our recent significant water and sewer infrastructure projects were funded by debt financing. In our financially-leveraged position, a primary financial indicator we must manage is the Debt Coverage Ratio.

Debt Coverage Ratio (DCR) =(Operating Revenues - Operating Expenditures) Debt Service

The 2003 Water Revenue Bond covenants require the City to meet a minimum 1.25 DCR in the Water Fund and the State of Oregon Clean Water Revolving Loan covenants require the City to meet a 1.05 DCR in the Sewer Fund.

108 Albany City Council Page 2 June 3, 2010, for the June 9, 2010, City Council Meeting

In addition to meeting the debt covenants, the OCR ratio can also be managed to provide for adequate pay-as-you-go (PAUG) cash (after debt payments and operational expenses) to fund a perpetual life maintenance program. An adequately-funded, perpetual life maintenance program provides for timely rehabilitation and replacement of obsolete infrastructure to reduce the risk of damage caused by pipeline failnres and service disruptions. Financially sustainable and stable utilities typically have a OCR ranging between 1.25 and 2.0. The specific target ratio depends upon the amount ofpay-as-you-go cash to fund the perpetual life maintenance program.

Water Rate Discussion In 2004, Council adopted the long-range water rate plan with the goal of keeping pace with inflation and slowly expanding the water rate base by one percent to address the backlog of capital improvements needed for the aged water system. The highest priorites included the replacement of the deteriorating steel lines, replacement of the antiquated canal flow control structnres, restoration of canal channel capacity, increasing reservoir storage volume, and performing maintenance on the Vine Street Water Treatment Plant.

The Water Financial Plan developed by the Mayor's Water Task Foce recommended annual water rate increases based on inflation, as measnred by the 12-month change in the Seattle Engineering News Record (ENR) Construction Cost Index. The plan called for rate increases equal to the ENR Construction Cost Index plus one percent. The rate plan also put a floor on the rate increase amonnt of not less than 2.5 percent, and a ceiling on the rate increase amonnt to not more than 6 percent per year. The City annually considers water rate adjustments to be implemented January ofeach fiscal year.

The financial model projects fnture water revenues and is based on several assnmptions. The first assumption is that water rates will increase an average of 4.7 percent per year based on the 10­ year historical ENR index (3.7 percent) plus one percent. The second assumption is that there is a growth of 1.34 percent each year in water consumption reflecting growth in the City (more customers). The third assumption is that operating expense have an inflation factor of4 percent per year.

Between 2004 and January 2008, the Council has followed the adopted rate plan, increasing water rates by the ENR inflation index plus one percent or by the minimum rate of 2.5 percent. With the state of the economy over the past couple of years, staff and Council have been highly sensitive to how water rate increases impact our citizens. Water rates have not increased since January 2008.

Following is a history ofwater rate adjustments since 200 I:

109 A lbany C ity Council Page 3 June 3, 2010, for the June 9, 2010, City Council Meeting

Effective Date Council Action March 200 1 Water rates increased 4 percent January 2002 Water rates increased 4 percent January 2003 Water rates increased 9 percent September 2003 Water rates increased 28 percent January 2004 No water rate increase October 2004 Adopled the Water Financial Plan, No water rate increase January 2005 Water rates increased of2.5 percent January 2006 Water rate structure changes to enhance rate equity (implemented a uniform fixed charge for each meter size for all classes, which include resident ial, multi-family, and non-residential) 2.5 percent revenue increase. January 2007 Water rates increased of3.6 percent (2.6% ENR + 1%) January 2008 Water rates increased of2.5 percent (-0.2% ENR, minimum 2.5%) January 2009 No increase January 2010 No increase

Currently, the Water Fund has the 2003 Water Revenue Bond debt obliga tion o f approxi mate ly $2 .58 million per year. The debt obl iga tion lasts until FY 2033/34. The FY 201011 1 de bt coverage ratio is projected to be 1.4 1. T he current debt coverage ratio is adequ ate to meet the covenants of the 2003 Water Bond. However, establishing a 1.65 debt coverage rat io goal in th e Water Fund is needed to generate a $1.68 mill ion per year in pay-as-you-go cash for the perpetual life maintenance pro gram.

Water Debt Coverage Ratio 1.70 2' u 1.60 e. Target OCR = 1.65 .;:;0 1.50 '" 1.40 -l-----,49 1.45 '".. 1.42 --- 1.30 '"~ ..> 0 1.20 u Mi nimum OCR = 1.25 .c-.. 1.10 C 1.00 2006 2007 2008 2009 2010 2011

Fiscal Year

- Minimum Debt Coverage Ratio - Target Debt Coverage Ratio - .I.-Actual Debt Coverage Ratio

110 Albany City Council Page 4 June 3, 2010, for the June 9, 2010, City Council Meeting

Operating expenditures are on target with the 2004 financial model. The 2004 financial model projected FY 2010/11 operating expenses to be at $8,059,927. The proposed Operating expenses FY 2010111 budget (less contingency) is at $ 8,065,700.

For the current year, the Water Fund is able to absorb another year with no rate increase. However, looking into future years, staff recommends at a minimum restoring rates based upon the adopted long-range Financial Plan. This will enable the water utility to progress toward the OCR target of 1.65 to have the pay-as-you-go capital for the perpetual life maintenance program to build the required capital projects, maintain infrastructure, and ensure safe drinking water, as well as meeting federal and state regulations.

Sewer Rate Increase for FY201011 1 On September 13, 2000, Council adopted Resolution 4329 to implement a 10-year sewer rate plan. The plan implemented 9-percent annual sewer rate increases starting in July 2000 with the last increase in July 2009. The original plan had intended for the rate base to expand to $12.4 million in revenue by June 2009. However, by June 2009 the rate base with the IO-year sewer rate plan fully implemented generated a $10.86 million rate base, which is $1.54 million 01' 12.4% less than plan. The net result is that not enough revenue is generated to fully fund the perpetual life maintenance program.

Staff recommends Council consider the adoption ofa seven (7) percent increase in sewer rates to be effective on July I, 2010. This sewer rate increase of seven (7) percent is the minimum necessary to meet the required debt service coverage ratio of 1.05 to meet the covenants of the Oregon Department of Environmental Quality Clean Water State Revolving Fund (SRF) loan. The loan was for the expansion of the Albany-Millersburg Water Reclamation Facility and the N011h Albany Pump Station force main. The City of Albany is contractually obligated to meet this minimum debt service coverage. Currently, the Sewer Fund has a debt service coverage ratio of 0.85. This increase was reflected in the proposed sewer budget presented to the Budget Committee in May.

The Sewer Fund has a SRF debt obligation of $5.2 million per year. This includes the estimated SRF loan debt payment for the wetlands treatment project. The FY 2010111 debt coverage ratio in the Sewer Fund is 0.85. The debt coverage ratio will need to be raised to 1.05 to meet the covenants of the Oregon Department of Environmental Quality Clean Water State Revolving Fund loan. Establishing a 1.4 debt coverage ratio target in the Sewer Fund is needed to generate $2.0 million pel' year in PAUG cash to fund the perpetual life maintenance program. The following chart shows the debt coverage ratio for the Sewer Fund from fiscal years 2010111:

111 Albany City Council Page 5 June 3, 20 I0, for the June 9, 20 I0, City Council Meeting

Sewer Debt Coverage Ratio

1.50 Target DCR = 1.4 1.40 '2 u 1.30 " 1.20 .,0 Mi nimum OCR=1.05 a:"' 1.10 ..'" 1.00 ~ i.os "' 0.90 > '"0 u 0.80 ~ .- 0.85 --- .0 '" 0.70 " 0.60 0.5 2DD9 2010 2011 2012 Fiscal Year

- Minimum Debt Coverage Ra tio - Target Deb t Coverage Ratio - .-Actual Debt Coverage Ra tio

With a 7 percent increase, the average reside ntial customer's bill will increase approxima tely $2.86 per month assuming no change in the amount of water used. The current average residential custo mer in Albany consumes eight hundred cubic feet (hct) of water per month (approximately 6,000 gallons per month). If rates are adjusted as proposed, the current average residential customer would pay $43.77 per month.

Affordability ofUtility Rates The affordability of a municipality's rates on its customers is an important factor to take into consideration when discu ssing water and sewer rate increases. An affordability index measures the burden of costs passed from each utility to the users against the median household income (MHI) for the area. The Environmental Protection Agency (E PA) affordability threshold currently is 2.5% ofMHI.

According to MuniNetGuide. com, based on income estimates from the 2007 U.S. Census, the median household income for Albany was estimated to be $43,777. Taking this figure against the EPA threshold of 2.5%, each separate utility bill would need to be greater than $91.20 per month to exceed the threshold for affordability. Putting this figure into perspective for Albany, the average customer's bill uses 8 units ofconsumption per month. The curre nt average water bill is $42.55 per month, or 1.1 7% of MHI. The average sewer bill is currently $40.9 1 per month, or 1.12% of MHI. With the proposed 7% increa se to the sewer rates, the average sewer bill would be $43.77 per month and 1.20% of MHI. These figures are depicted in the following chart:

11 2 Albany City Coun cil Page 6 Jun e 3, 20 I0, for the Jun e 9, 20 I0, City Council Meeting

Affordability of Water/Sewer Bill

...... Avg Wate r Bi ll __Avg Sewer Bi ll """,*"" EPAAffordability =2.S%of MHI ~ Co m b i n e d Water/Sewer Bill

$100 $91:20 $91:20 $91.20 $91.20 $91.20 $90

$80 86:3:Z- $83.46 $80.08 $70 -76:98 $73.08 $60 $6904

$SO ~42:SS $40.06 =9 $42;SS $42;SS $42,:SS- $40 $43-.77 $40.91 $30 3M3 $34.43 $31.59 $20 $28 98 2006 2007 2008 2009 2010 2011

Budget Impact: Implementing a rate adj ustment for sewer charges in July 20\0 will incre ase revenue by approx imatel y $894,000 in fiscal year 2010/11. The 201 011\ budget was prepared anticip ating that a rate adj ustment wou ld be approved. Sewer rate revenu e depends on many factors and will likely vary from any estimated amount.

No budget impact for the Water Fund .

JMB;DTD;kw Attachment

113