City Council - July 2, 2007

JULY 2, 2007

REGULAR MEETING

BANDON CITY COUNCIL/URA

555 HIGHWAY 101, BANDON

7:00 P.M.

TENTATIVE AGENDA

1. CALL TO ORDER - INVOCATION - PLEDGE OF ALLEGIANCE

(Reverend Jo Miller, St. Johns Episcopal Church)

2. CONSENT AGENDA

Action Items

2.1 Minutes of the Regular Meeting 6/11, & Executive Session 6/11

2.2 Commission/Committee Appointments- Barbara Dodrill reappointment to the Budget Committee
2.3 Information Only: Department Reports

2.3.1 Administrative Update, City Manager - None

2.3.2 Police Report for

2.3.3 Parks and Rec Minutes of 5/24

2.3.4 A/P Report for May

2.3.5 Planning Commission Minutes of 6/21

2.3.6 Library Report - None

2.3.7 Wastewater Plant Report for May

2.3.8 Water Resource Committee 5/16

2.3.9 Public Works Quarterly Report April, May, June

2.3.10 Water Treatment Plant Report for May

3. PUBLIC COMMENT-3 minute limit

Citizen’s opportunity to speak on general municipal issues not on the agenda.

Material brought to the meeting for distribution - please supply 14 copies.

4. PRESENTATION

4.1 Presentation by the Beautification Committee of the BANDON lettering project.

4.2 Presentation on Alternative Energy for the Lighthouse Project by Mary Geddry.

5. INFORMATION/DISCUSSION

5.1 Information and Discussion with the City Attorney regarding ex-parte contact and attendance at Planning Commission meetings.

6. ACTION AND DISCUSSION

6.1 Resolutions

6.1.1 Res. 07-16 Provide City Services to the URA

6.1.2 Res. 07-09 Extending Workman’s Compensation Coverage to volunteers of the City of Bandon.

6.2 Action and Discussion

6.2.1 Direction to Planning Commission re: Reduction of Old Town Architectural Review Overlay Zone.

7. OTHER: COUNCILORS/MAYOR/STAFF REMARKS

8. ADJOURNMENT TO URBAN RENEWAL MEETING

URBAN RENEWAL AGENCY

REGULAR MEETING

IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING

1. CALL TO ORDER

2. APPROVAL OF MINUTES OF 6/11.

3. PUBLIC COMMENT (3 MINUTE LIMIT)

4. ACTION AND DISCUSSION

4.1 Res. UR-07-02: Contract with the City for Services

5. PRESIDENT/BOARD MEMBERS/STAFF COMMENTS

6. ADJOURN TO EXECUTIVE SESSION

9. EXECUTIVE SESSION

9.1Executive Session per ORS 192.660(2)(i) - Staff Evaluations

10. ADJOURN BACK TO REGULAR SESSION

11. ACTION, IF ANY, AS A RESULT OF EXECUTIVE SESSION

12 ADJOURNMENT

Council Chamber is accessible to the disabled. For services contact City Hall

at 347-2437 Voice; 711 TTR; e-mail: citymanager@ci.bandon.or.us

City web site: www.ci.bandon.or.us

Bandon is an equal opportunity employer including individuals with disabilities.

THE NEXT REGULAR MEETING OF THE COUNCIL WILL BE AUGUST 6.

Coos County Offering Free Metal Recycling Event

Coos County will hold a residential metal collection event at the Beaver Hill Disposal Site on Tuesday, June 19, through Tuesday, June 26. The hours of operation are 8 a.m. to 4 p.m., Tuesday through Saturday, and closed Sunday and Monday.

Examples of accepted items are washers, dryers, appliances, wood burning stoves, empty burn barrels, barbeques, refrigerators/freezers (Coos County will remove Freon and compressors), small and large metal tools, metal furniture, bicycles, metal exercise equipment, tire rims, lawn equipment (drained), empty propane tanks with valve/stem removed, metal fencing with wood posts removed, nails, screws, etc. (place in metal container or tin cans), and other miscellaneous scrap metal.

Items that will not be accepted are vehicles, logging and fishing cable, and household hazardous waste.

Residents who wish to get rid of vehicles can call South Coast Auto Wrecking, and owner Steve Hutchison will pick them up at no charge within a 10-mile radius of Bandon. A nominal fuel fee may be charged to pick up a vehicle located farther than 10 miles from town. South Coast Auto Wrecking also takes metal items anytime, free of charge. The items must be dropped off at the business, located at 49531 Highway 101 South, but pickup can be arranged. For information, those interested can call South Coast Auto Wrecking at 347-3101 for more information.

Bid Awarded for Wastewater Treatment Plant Equipment Purchase

The City received two bids for providing the equipment for upgrading the wastewater treatment plant ultra-violet disinfection system, to comply with the Department of Environmental Quality (DEQ) discharge permit requirements. Since this is specialized equipment which differs between manufacturers, the proposals were ranked according to price, and also according to a point system based on the degree to which the equipment meets the City’s needs and specifications. The City Council awarded the bid to UV Doctor Systems LLC, which was ranked highest in both categories.

It was anticipated that the project completion would cross over two fiscal years, and was budgeted accordingly. Funding will come from the Sewer Fund, Sewer Reserve Fund, and Sewer System Development Charges (SDCs). A total of $250,000 was included in the fiscal year 2006-2007 for design engineering and equipment purchase. The low equipment purchase bid of $147,000, combined with $20,000 expended for engineering, is within that portion of the budget. A total of $125,000 was included in the proposed fiscal year 2007-2008 budget for construction engineering and equipment installation. It is anticipated that installation costs will be in the range of $50,000 - $75,000, plus $15,000 in construction engineering, which would be within the remaining budget.

Commercial Design Standards Adopted

Following discussions and public input at the June 4^th City Council meeting, and after further discussions and public input at a June 11^th public hearing, the City Council passed the Commercial Design Standards on a vote of 4-2, with Councilors Tiffany, Claassen, Procetto, and Drew voting in favor, and Councilors Powell and Briscoe voting in opposition. Since it was not a tie vote, Mayor Schamehorn could not vote.

The final Commercial Design Standards, as amended by the City Council, generally include regulations regarding landscaping; building design, mass, scale, and use of materials; and lighting for commercial construction in the General Commercial (C-2) Zone, and on those properties zoned Light Industrial (LI) abutting Highway 101. The regulations apply to new buildings over 2,500 square feet, but exempt buildings existing at the time the ordinance was adopted which are less that 5,000 square feet, unless such existing buildings are enlarged such that the resulting building is greater than 5,000 square feet. In addition to perimeter landscaping requirements for all parking lots, the new regulations require additional landscaping and tree planting for all parking lots with more than 40 spaces. The ordinance adopting the regulations contained an emergency clause, and therefore took effect immediately upon their adoption.

Tree Removal Regulations Amended

On March 5, 2007, following a recommendation from the Parks & Recreation Commission, the City Council passed to a second reading amendments to the regulations regarding tree removal on City property and rights of way. Final adoption was delayed to allow the City Attorney time to review the previous language, as well as the proposed changes. On June 11^th, the City Council adopted the amended regulations. The minimum fines for the un-permitted removal of trees over 4" in diameter at 4 ft. high remain the same, at $1,500 for each tree, except a Monterey Cypress which is $3,000 per tree. The primary change was to close a major loophole by including "major pruning" in the same fine category as "removal." Major pruning is defined as removing over 20% of a tree’s mass within a five year period. The impetus for this particular clarification revolved around a prior municipal court case involving an individual who had eliminated all of a Monterey Cypress tree, except for the bottom 6 feet of stump, and a branch with some green leaves on it. Since the tree was not completely dead, the actions did not technically constitute "removal," and therefore the minimum fines for tree removal did not apply.

Sewer Rates to be increased 10%

The fiscal year 2007-2008 budget includes a 10% electric rate increase for the upcoming year. At their June 11^th meeting, the City Council unanimously approved the increase, which will take effect with electric bills issued after June 30, 2007. The increase will therefore be included on the bills which the City mails out at the end of July, and are received with the customers at the beginning of August.

Fiscal years 2006-2007 and 2007-2008 have required significant expenditures for delayed maintenance capital improvements such as the Johnson Creek Pump Station, Oregon Avenue Sewer Line Replacement, and the Wastewater Plant Ultra-Violet Disinfection System, as well as increased equipment, materials, and supply costs. As a result, revenues have not kept up with expenditures, and beginning balances have declined. In addition, there is a need to increase reserves for such future projects as an Emergency Generator and Inflow & Infiltration projects. Although sewer rates were not increased last year, a 10% increase this year would be consistent with the City’s practice over the last several years of gradually instituting multiple smaller annual rate increases, to keep the impacts on the customers as low a possible, to avoid having to borrow funds for capital improvements, and to avoid the necessity of extremely large single rate increases.

The City Charter, Section 47, which was adopted on September 19, 1995, restricts the ability of the City Council to increase sewer utility rates. However, in the Stadelman v. City of Bandon sewer rate suit, the court ruled that a pre-existing June 30, 1992 bond financing agreement requires the City to maintain sewer rates at a level necessary to properly operate and maintain the system, and to meet the debt service obligations. Therefore, in accordance with that court ruling and the bond financing agreement, the City Council has the authority and obligation to increase sewer rates to meet those requirements.

The rate increase is projected to generate an additional $64,700 in sewer revenues during the upcoming fiscal year. For an inside-City residence using an average of 5,000 gallons of water per month, the 10% increase would raise the monthly utility bill by $2.52 (from $25.24 to $27.76), plus the 10% utility sales tax. Since sewage generation cannot be measured, the City’s sewer charges are based on water consumption. The following table illustrates the increased Bandon sewer rates for an average inside-City residence using 5,000 gallons of water per month, and a large commercial customer, such as a motel, using an average of 106,000 gallons of water per month, compared to corresponding rates for the nearby small cities of Coquille, Gold Beach, Myrtle Point, and Port Orford. The rates shown do not reflect General Obligation Bond debt service payments (if any) or General Fund subsidies (if any).

Monthly bill for a single-family residence using an average of 5,000 gallons of water:

• City of Gold Beach $ 49.50
• City of Port Orford $ 47.00
• City of Coquille $ 42.10
• City of Myrtle Point $ 29.70*
• City of Bandon $ 27.76

* Myrtle Point also has a reduced rate of $24.20 for seniors, disabled, and vacant premises.

Monthly bill for a large commercial customer, such as a motel, using an average of 106,000 gallons of water:

• City of Coquille $1,018.64
• City of Gold Beach $ 593.89
• City of Port Orford $ 536.85
• City of Myrtle Point $ 532.19
• City of Bandon $ 355.40

Electric Rates to be Increased 5%

The fiscal year 2007-2008 budget includes a 5% electric rate increase for the upcoming year. At their June 11^th meeting, the City Council unanimously approved the increase, which will take effect with electric bills issued after June 30, 2007. The increase will therefore be included on the bills which the City mails out at the end of July, and are received with the customers at the beginning of August.

Combined with the 3% increase last year, these increases represent the only electric rate increases since 1993, except for the pass-through of the 2001 Bonneville Power Administration (BPA) wholesale price increases and the State mandated low-income energy assistance charge. The proposed increase is necessary to offset increased costs, particularly for electric materials and supplies such as transformers, which have increased as much as 100%. In addition, all of the new residential developments being constructed have increased the demand for on-hand repair and replacement supplies. A 5% increase this year would be consistent with the City’s practice over the last several years of gradually instituting multiple smaller annual rate increases, to keep the impacts on the customers as low a possible, to avoid having to borrow funds for capital improvements, and to avoid the necessity of extremely large single rate increases.

The City Charter, Section 48, which was adopted on September 19, 1995, restricts the ability of the City Council to increase electric utility rates. However, a pre-existing November 1, 1994 bond financing agreement requires the City to maintain electric rates at a level necessary to properly operate and maintain the system, and to meet the debt service obligations. Therefore, similar to the sewer system, the City Council has the authority and obligation to increase electric rates to meet those requirements.

The rate increase is projected to generate an additional $217,150 in electric revenues during the upcoming fiscal year. For an inside-City residence using an average of 1,200 kWh per month, the 5% increase would raise the monthly utility bill by $4.01 (from $80.29 to $84.30), plus the 10% utility sales tax. The following table illustrates the increased Bandon electric rates for an average inside-City residence using 1,200 kWh per month, and a large commercial customer, such as a motel, using an average of 16,480 kWh, compared to corresponding rates for the other electric companies in the County, Coos-Curry Electric and Pacific Power.

Monthly electric bill for a single-family residence using an average of 1,200 kWh:

• Pacific Power $108.70
• Coos Curry Electric $ 97.52
• City of Bandon $ 84.30

Monthly electric bill for a large commercial customer, such as a motel, using an average of 16,480 kWh:

• Pacific Power $1,362.23
• City of Bandon $1,266.44
• Coos Curry Electric $1,178.49

Library Service DistriceAgreement Approved

To receive a distribution of funds from the Coos County Library Service District, the City is required to enter into an agreement with the County for that purpose. There is an existing agreement, originally entered into in fiscal year 1996-1997, which is annually amended to update the amounts distributed to Southwestern Oregon Community College for the Coastline Budget (for maintaining the county-wide automated computer system) and the Extended Service Office (for operating the county-wide outreach, courier van, and inter-library loan program). At their June 11^th meeting, the City Council unanimously approved the amended agreement. It is estimated that the City of Bandon will receive $230,000 in Library District funds during the upcoming fiscal year 2007-2008, which would represent an increase of 5,000 over last year.

Fiscal Year 2007-2008 Stare Revenue Sharing Fund Budget Approved

Immediately following a public hearing at their June 11^th meeting, the City Council unanimously adopted the fiscal year 2007-2008 State Revenue Sharing Fund budget. The total State Revenue Sharing Fund budget is $32,400. This is significantly less that last year’s $63,000 budget, due to the fact that $40,000 in previously saved pothole repair reserve funds had to be used to subsidize the operation of the water system. Since the voters approved a water rate increase last year, the remaining funds can now be used for other purposes. A total of $17,950 will be contributed to various community service organizations, including Belloni Shelter Care, Dial-A-Ride, the Project EAT meals program, the Bandon Historical Society, the Lions Club 4^th of July Celebration, the Neighbor to Neighbor Dispute Resolution Center, the Retired Senior Volunteer Program (RSVP), the Start Making A Reader Today (SMART) program, the Women’s Resource Center, and the Bandon Youth Center. $7,320 is budgeted for rebuilding the pothole repair program, and $7,130 is included for contingencies.

Fiscal Year 2007-2008 City and Urban Renewal Budgets Adopted

Immediately following public hearings at their June 11^th meetings, the City Council and Urban Renewal Agency unanimously adopted the fiscal year 2007-2008 City and Urban Renewal budgets. The total City budget for year 2007-2008 (July 1, 2007 - June 30, 2008) is $22,559,829, which represents an increase of $181,377 (less than 1%) above the fiscal year 2006-2007 budget of $22,378,452. The combined total of the budgets for Urban Renewal District No. 1 and District No. 2 is $1,202,305, which is $153,537 more than last year.

Unlike most other cities whose budgets are based heavily on property taxes, Bandon’s revenues are primarily generated by its electric, water, and sewer utilities. At only $.46 per $1,000 assessed valuation, the City of Bandon's permanent property tax rate is extremely low compared to other full-service cities in the County, whose rates range from $6.10 to $7.99. The City's ability to provide essential public services relies upon the overall health of its water, sewer, and electric enterprises. These utilities contribute to the City’s operation through sales taxes, in-lieu taxes, and direct payments. The proposed budget anticipates that the total operating resources (beginning balance, grants, and pass-through funds excluded) to be received by the General Fund in fiscal year 2007-2008 will be $2,434,734. Of This amount, $1,653,506 (68%) will be received from the utility systems and utility taxes. The second largest resource is anticipated to be transient occupancy taxes in the amount of $417,593 (17%). Property taxes are expected to contribute only $153,906 (6%), with all other resources accounting for $209,729 (9%).

Committee and Commission Appointments

The City Council has approved the appointment of David Kimes to serve as the Planning Commission representative on the Committee for Citizen Involvement (CCI); the appointment of Doug Richert to the Water Resource Committee to replace Wayne Scherer, whose term expires on June 30^th; the appointment of Carolyn Goldwasser to the Parks & Recreation Commission to replace Wilfred Schroeder, whose term expires on June 30^th; the reappointment of Michael Scalici to a second term on the Water Resource Committee; and the reappointment of Nancy Stein to a second term on the Library Board. Congratulations to David, Doug, Carolyn, Michael, and Nancy on their appointments, and a sincere thanks to Wayne and Wilfred for their service to the community!

Planning Commission - June 12, 2007

REGULAR MEETING OF THE PLANNING COMMISSION

CITY OF BANDON

THURSDAY, JUNE 21 2007

7:00 PM IN THE COUNCIL CHAMBERS, CITY HALL

T E N T A T I V E A G E N D A

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Council Chambers accessible to the disabled. For special services contact City Hall 48 hours in advance

347-2437, Voice 711 TTR e-mail: citymanager@ci.bandon.or.us web: www.ci.bandon.or.us

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1.0 CALL TO ORDER

1.1 ROLL CALL

2.0 APPROVAL OF MINUTES

2.1 PLANNING COMMISSION MINUTES OF 05-24-07

2.2 PLANNING COMMISSION MINUTES OF 05-31-07

3.0 CONSENT AGENDA

3.1 HEARINGS OFFICER/ADMINISTRATIVE REPORT

3.2 COMMITTEE FOR CITIZEN INVOLVEMENT MINUTES OF 03-13-07 & 05-08-07

3.3 PARKS & RECREATION COMMISSION MINUTES OF 04-26-07

3.4 WATER RESOURCE MINUTES OF 03-21-07

4.0 PUBLIC COMMENTOpportunity for Citizens to speak on issues NOT on the Agenda. TIME LIMIT - 3 MINUTES

5.0 PUBLIC REQUEST

5.1 BANDON COMMONS/KEISER, BEACH LOOP, MAP 28-15-36BB, TAX LOT 200

TENTATIVE SUBDIVISION PLAN AMENDMENT [Continued from 04-26-07]

5.2 VINING/THE STATION, 635 2^ND ST @ FILLMORE, MAP 28-14-30BD, TAX LOT 3700

ADDING TO EXISTING STRUCTURE IN ARCHITECTURAL REVIEW (AR) ZONE

6.0 HEARING

6.1 MURRAY, SOUTHWEST CORNER OF HWY 101 & SEABIRD DR., MAP 28-15-36, TAX LOT 1402,

COMMERCIAL PARTITION & ACCESS VARIANCE

7.0 DISCUSSION/OTHER

8.0 ADJOURN

Bandon is an equal opportunity employer including people with disabilities

Parks and Rec Agenda

CITY OF BANDON

PARKS & RECREATION COMMISSION

City Hall

REGULAR MEETING

&

WORK SESSION

THURSDAY, JUNE 14, 2007

5:30 PM

1. CALL TO ORDER/ROLL CALL

2. APPROVAL OF MINUTES

2.1 MAY 10, 2007

3. COMMISSION LIAISON REPORTS

3.1 BANDON ARTS COUNCIL

3.2 BEAUTIFICATION COMMITTEE

4. ADJOURN TO WORK SESSION

5. PARKS MASTER PLAN

5.1 Review submitted changes and updates to Chapter 1, 2, 3 and 6

5.2 Review and comment on Survey

5.3 Continue with Chapter 6

6. ADJOURN

Council Chamber is accessible to the disabled. For special services, contact City Hall 48 hours in advance

(347-2437 extension 230, Voice; 711, Text Telephone’ E-Mail: citymanager@bandon.ci.or.us)

CITY WEB SITE: www.ci.bandon.or.us

Bandon is an equal opportunity employer including individuals with disabilities.

City Council Agenda

JUNE 11, 2007

REGULAR MEETING

BANDON CITY COUNCIL

555 HIGHWAY 101, BANDON

7:00 P.M.

TENTATIVE AGENDA

1. CALL TO ORDER - INVOCATION - PLEDGE OF ALLEGIANCE

(Pastor Robin Haruna, Unity Church)

2. CONSENT AGENDA

Action Items

2.1 Minutes of the Regular Meeting May 7, Special Session June 4, 2007

2.2 COMMITTEE APPOINTMENTS

2.2.1 Approve appointment of David Kimes to the CCI (standing committee member from the Planning Commission); appointment of Doug Richert to the Water Resource Committee; appointment of Carolyn Goldwasser to the Parks & Rec Committee; reappointment of Michael Scalici to the Water Resource Committee; reappointment of Nancy Stein to the Library Board.

2.3 INFORMATION ONLY : Department Reports

2.3.1 Administrative Update, City Manager

2.3.2 Police Report for April

2.3.3 Parks and Rec Minutes of 4/26 & 5/10

2.3.4 A/P Report for April

2.3.5 Planning Commission Minutes of 5/10, 5/24, 5/31

2.3.6 CCI Minutes of 5/8

2.3.7 Library Report for April

2.3.8 Wastewater Plant Report for April

3. PUBLIC COMMENT

4. PUBLIC HEARINGS

4.1 Commercial Design Standards

4.1.1 BOR-212 Commercial Design Standards (Ordinance No. 1565)

4.2 State Revenue Sharing

4.2.1 Res. 07-10 Request for Revenue Sharing Funds

4.3 City Budget for FY 2007-2008

4.3.1 Res. 07-11: Approve Budget for FY 2007-2008

5. ACTION AND DISCUSSION

5.1 Resolutions

5.1.1 Res. 07-12: Sewer Rate Increase

5.1.2 Res. 07-13: Electric Rate Increase

5.1.3 Res. 07-14: Amend Coos County Library District Agreement

5.1.4 Res. 07-15: Modification of 2006-2007 Budget

5.2 Action and Discussion

5.2.1 Bid for Oregon Avenue Sewer Line Phase #2

5.2.2 Award Bid for Water Plant UV System

5.3 Ordinances

5.3.1 BOR - 211 Amend BMC 12.13.090 Penalty (Trees)

(ORD 1564) 2^nd reading

6. OTHER – COUNCILORS/MAYOR/STAFF REMARKS

7. ADJOURN TO MEETING OF URA

URBAN RENEWAL AGENCY

SPECIAL MEETING

JUNE 11, 2007

IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING

1. CALL TO ORDER

2. PUBLIC COMMENT (3 MINUTE LIMIT)

3. PUBLIC HEARING: URA BUDGET FOR FY 2007-2008

3.1 Res. UR 07-01: Adopt Budget for FY 2007-2008

4. BOARD MEMBERS/STAFF COMMENTS

5. ADJOURN TO EXECUTIVE SESSION

8. EXECUTIVE SESSION

8.1 Executive Session per ORS 192.660(2)(d)- Labor Negotiations

8.2 Executive Session per ORS 192.660(2)(I) - Employment of Staff

9. ADJOURN TO REGULAR COUNCIL MEETING

10. ACTION, IF ANY, AS A RESULT OF EXECUTIVE SESSION

11. ADJOURNMENT

Council Chamber is accessible to the disabled. For services contact City Hall

at 347-2437 Voice; 711 TTR; e-mail citymanager@ci.bandon.or.us

City web site: www.ci.bandon.or.us EOE

THE NEXT REGULAR MEETING OF THE COUNCIL WILL BE JULY 2.